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#Economy Current Affairs
GST Revenue Grows 14.8% to Nearly ₹2 Lakh Crore in August
GST collections reached ₹1.998 lakh crore, growing by 14.8%. However, several concerns remain: domestic growth at 9.3% is lower than import growth of 29%, while refunds have increased by 72.6%. The inverted structure of the GST duties is still a concern. Moving ahead, rate rationalisation and compliance are needed.
Chandra’s settlement comes as IBC turns 10, with bank haircuts at five-year high
The bankruptcy proposal put forth by Subhash Chandra with a haircut of 99.97% has once again opened the debate on IBC. It throws light on many of the issues relating to resolution versus recovery, related-party voting, and personal guarantors.
Gross FDI hit 15-year high of $30.7 billion in April-June 2026
Gross FDI inflow into India registered a 15-year record of $30.7 billion in Q1 2026, showing an increase of 46% from the previous quarter, led by the manufacturing sector. Net FDI inflow has become positive with $1.3 billion recorded in June. Challenges are posed by large outflows, concentration of investors, and the requirement for good-quality investments.
Retail inflation hits 19-month high of 4.45% in July 2026 as food, fuel prices rise
The inflation rate in India touched a 19-month high of 4.45% in July 2026 because of the increase in food prices, particularly that of vegetables, while the core inflation rate remained steady at 3.9%. The RBI can accommodate this situation, but certain dangers need joint efforts by monetary and supply-side policies.
Taxation and Other Laws (Amendment) Bill, 2026 Introduced in Lok Sabha
The Taxation and Other Laws (Amendment) Bill, 2026 is an effort towards bringing a contemporary Indian taxation system which can help improve tax certainty, bring in foreign investments, improve digital payment systems and infrastructure and restore tax benefits on REITs and InvITs, besides substituting the Income-tax (Amendment) Ordinance, 2026.
Rajya Sabha Passes MSME Development (Amendment) Bill, 2026
The MSME Development (Amendment) Bill, 2026 encourages digitisation and invoice financing through TReDS, as part of an effort to enhance MSME liquidity and formalisation. It aims to facilitate quick payments and develop the digital economy. It will be successful based on the following factors: greater use of TReDS, implementation, digital literacy, and financial inclusion of MSMEs.
The Rupee is No Longer Overvalued
The rupee is undervalued, making India competitive in exports and manufacturing. Yet, import prices, inflation, and other risks pose difficulties. This calls for a stable currency exchange rate, increased exports, and structural reform.
India’s Total Exports Reach Record $863.1 Billion in 2025-26
India recorded an all-time high of US$863.1 billion for its exports in fiscal year 2025-26, owing to its robust performance in merchandise exports, service exports, FTAs, and digital trade facilitation. Even when faced with obstacles such as global slowdown, protectionism, and logistics costs, India will continue to grow through exports owing to its FTAs, manufacturing, infrastructure, and MSMEs.
India's F&O Boom Needs Adequate Protections
The futures and options market in India has shown remarkable growth to become one of the biggest derivative markets in the world. But with increasing participation from retail customers, especially new and inexperienced traders, there have been considerable financial losses, indebtedness, and suicide cases reported.