UPSC Economy current affairs: budget, RBI policies, inflation, fiscal policy, banking and financial sector updates.
Part of: UPSC Current Affairs 2026 Hub
BMI forecasts India’s FY2026/27 GDP at 6.6%, slower than the 7.7% growth in FY2025/26, due to waning GST‑driven consumption, rising inflation and trade shocks from the West‑Asia crisis. The RBI’s low short‑term rates and a projected weaker Rupee aim to support exports, while policymakers must balance inflation control with investment revival.
MoSPI has updated the Index of Industrial Production by moving the base year to 2022‑23, adding a new Gas and Water Supply sector, and revising the item basket and weights. The same ministry also overhauled the CPI with a 2024 base year and a larger basket, affecting inflation measurement and RBI policy analysis—crucial points for UPSC economics preparation.
On 10 June 2026 the rupee slipped to 95.56 per US dollar as US‑Iran tensions in the West Asia war pushed crude oil prices higher, widening India’s trade deficit. The move also saw a modest rise in the dollar index, a rally in Indian equity indices, and a net outflow of ₹4,566.03 crore by foreign institutional investors, highlighting the currency’s sensitivity to geopolitical and commodity shocks.