Recent 6 months news in Economy

The Ministry of Finance (MoF) has issued a notification to empower the Principal Bench of the Goods and Services Tax (GST) Appellate Tribunal (GSTAT) in New Delhi to function as the National Appellate Authority for Advance Rulings (NAAAR). The notification will come into effect in April 2026, at which point the President of GSTAT will serve as the Presiding Officer for the NAAAR.

According to data released by the Ministry of Statistics and Programme Implementation (MoSPI), India’s retail inflation increased marginally to 3.48% in April 2026 from 3.4% in March 2026.

During the month, rural inflation was recorded at 3.74% while urban inflation stood at 3.16%. Food inflation, as measured by the All India Consumer Food Price Index (CFPI), also saw a rise to 4.2% in April 2026 compared to 3.87% in March 2026.

The Agricultural and Processed Food Products Export Development Authority (APEDA) has facilitated the inaugural shipment of 20 metric tons (MT) of honey from the Baksa district of Assam to the USA.

The Ministry of Power has revised the “Make in India” procurement norms for High Voltage Direct Current (HVDC) substations of the Line Commutated Converter (LCC) type.

The updated guidelines introduce a phased roadmap to achieve a minimum local content (MLC) of 60% by 2035, replacing the previous uniform 60% requirement. The MLC targets for HVDC LCC type substations under EPC or turnkey projects are set at 30% by FY28 and 40% by FY30. The targets will subsequently increase to 50% by FY32 and reach the final 60% by FY35.

According to a report by the SBI Research, the real GDP growth of India for FY27 is estimated at 6.6%. The report projects growth rates of 6.8% for Q1 and 6.6% for Q2, while the growth for the second half (H2) of the fiscal year is projected at 6.5%.

According to the 'India Forward- Emerging Perspectives' report jointly released by S&P Global Market Intelligence and CRISIL Ratings Ltd, the Gross Domestic Product (GDP) growth of India for FY27 is revised downward by 50 basis points (bps) to 6.6%.

The report estimated the GDP growth for FY26 at 7.6% and the average annual growth between FY23 and FY26 at 7.3%. The retail inflation is projected to average 5.1% in FY26. The Current Account Deficit (CAD) is expected to expand from 0.8% of GDP in FY26 to 2.2% in FY27. Further, the debt-to-GDP ratio of India is forecasted to increase to 57.5% from 56.1% in FY26.

The Union Cabinet has approved the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 with an outlay of ₹18,100 crore to assist Micro, Small and Medium Enterprises (MSMEs) in mitigating short-term liquidity stress arising from the crisis in West Asia. The scheme provides 100% credit guarantee coverage for MSMEs and 90% for non-MSMEs and the airline sector. Eligible borrowers include MSMEs and non-MSMEs with existing working capital limits and scheduled passenger airlines with outstanding credit facilities as of March 2026, provided their accounts are classified as standard.

The Ministry of Finance (MoF) has notified the “Foreign Exchange Management (Non-debt Instruments) (Second Amendment) Rules, 2026”, allowing 100% Foreign Direct Investment (FDI) in Indian insurance companies and intermediaries through the automatic route.

It is to be noted that foreign investment in the Life Insurance Corporation of India (LIC) remains restricted to a maximum of 20% under the automatic route.

The National Statistics Office (NSO) has notified uniform guidelines for the compilation of Gross State Value Added (GSVA), designating 2022-23 as the new base year.

It is to be noted that 34 States and Union Territories (UTs) currently use 2011-12 as the base year for Gross State Domestic Product (GSDP) estimates, except for Lakshadweep and Dadra and Nagar Haveli and Daman and Diu. The Ministry of Statistics and Programme Implementation (MoSPI) seeks to onboard all States and UTs under the new series.

The Government of India (GoI) has expanded the scope of the “Resilience & Logistics Intervention for Export Facilitation” (RELIEF) scheme under the Export Promotion Mission (EPM) by including Egypt and Jordan as eligible destinations. The initiative aims to assist exporters of India in mitigating logistics disruptions and escalating costs resulting from the prevailing geopolitical situation in West Asia.

According to a report titled “Economic and Social Survey of Asia and Pacific 2026: Socioeconomic Prosperity Amid the Transition to an Environmentally Sustainable Economy” released by the UN Economic and Social Commission for Asia and the Pacific (ESCAP), the economy of India is projected to grow at 6.4% in Calendar Year 2026 (CY26) and 6.6% in CY27.

The inflation of India is expected to reach 4.4% in CY26 and 4.3% in CY27. The growth rate of the South and South-West Asia region is estimated at 5.4% in CY25, which is an increase from 5.2% in CY24. During the first three quarters of CY26, India attracted the largest share of greenfield Foreign Direct Investment (FDI) worth $50 billion. It is followed by Australia, Republic of Korea, and Kazakhstan.

According to a report by the State Bank of India (SBI), the GDP growth of India for FY26 is estimated at 7.6% and for FY27 it is projected to range between 6.8-7.1%. The report also estimated India’s average inflation at 4.5% and the fiscal deficit between 4.5-4.6%.

According to the government data, China has emerged as the largest trading partner of India for FY26, with total bilateral trade reaching $151.1 billion. The country has replaced the USA, which served as the primary trading partner of India for four consecutive years until FY25.

The trade deficit between India and China widened to $112.16 billion. During this period, the exports of India to China increased by 36.66% to $19.47 billion, while imports from China grew by 16% to $131.63 billion.

According to data released by the Ministry of Commerce and Industry, the Wholesale Price Index (WPI) inflation increased to 3.88% in March 2026 from 2.13% in February 2026.

According to the report “South Asia Economic (SAE) Economic Update April, 2026: Working with Industrial Policy” released by the World Bank (WB), the GDP growth of India for FY27 is revised upwards to 6.6% from the earlier projection of 6.3%.

According to a report by the International Monetary Fund (IMF), the Gross Domestic Product (GDP) growth of India for FY27 is revised to 6.5% from the 6.4% growth rate estimated in the January outlook.