Economy & Banking

Gross Domestic Product grew 7.8% in April-June 2026, faster than the 6.9% of a year earlier but slower than the 8.6% of January-March 2026. Manufacturing grew 9.2%, a three-quarter high, services 10% and construction 7.7%, while mining contracted 2.4% on a high base.

Gross Goods and Services Tax revenue stood at ₹1,99,853 crore in August 2026, a growth of 14.8% over a year earlier, according to data released on 1 September. Revenue from imports grew 29% while domestic transactions grew in single digits; net collections rose a slower 8.3% because of higher refunds.

India’s current account deficit widened to $4.2 billion, or 0.5% of GDP, in April-June 2026, against $3.4 billion, or 0.4% of GDP, in the same quarter of the previous year, according to preliminary data released by the Reserve Bank of India on 1 September.

Foreign exchange inflows under the Reserve Bank of India’s swap facility crossed $136 billion, data released in the first week of September showed. Of the $1,36,377 million raised, $1,27,226 million came through FCNR(B) deposits, $5,260 million through overseas foreign currency borrowings and $3,891 million via external commercial borrowings.

The Securities and Exchange Board of India issued a letter of observation on the National Stock Exchange’s draft red herring prospectus, clearing the way for a ₹30,000-crore initial public offering. It would be the second-largest IPO in India after the proposed Jio Platforms issue. NSE had filed its DRHP on 17 June.

The Japan Credit Rating Agency raised India’s sovereign credit rating by one notch from ‘BBB+’ to ‘A-’ on 2 September, citing India’s relatively high growth, the government’s growth-oriented policies and the improved strength of the financial system. The Finance Ministry welcomed the upgrade.

Oil marketing companies raised the price of the commercial LPG cylinder by ₹10 and aviation turbine fuel by ₹6.28 a litre from 1 September, reversing two months of cuts. Domestic LPG consumption fell about 16% in August, with new connections still on hold because of the West Asia conflict.

The Insurance Regulatory and Development Authority of India began a consultation on 1 September on setting up a Public Insurance Registry, a proposed common repository of insurance data for the industry.

Foreign portfolio investors bought a net $3.1 billion of Indian shares in August 2026, the highest monthly inflow in nearly two years and the second straight month of buying after a long spell of outflows.

Telangana Chief Minister A. Revanth Reddy announced on 5 September a ₹70,000-crore investment by the Tata Group, TCS and its subsidiary HyperVault to build a one-gigawatt artificial intelligence data centre in Hyderabad, described as the country’s largest. It is to create about 7,000 direct jobs, with completion sought before June 2028.

Gross foreign direct investment into India reached $30.7 billion in April–June 2026, the highest in 15 years for the quarter. An analysis of the latest RBI data also showed net FDI turning positive again in June 2026, with inflows exceeding outflows by $1.3 billion that month.

India’s Index of Industrial Production grew 6.7% in July 2026, slower than the 8.8% recorded in June, according to data released by the Ministry of Statistics and Programme Implementation. It was still the second-best reading the index has seen since December last year, buoyed by manufacturing and by the electricity and gas supply sectors.

The Unified Payments Interface, launched by the National Payments Corporation of India on 25 August 2016, completed a decade. Annual transaction volume rose from 1.78 crore in FY17 to 24,162 crore in FY26 — a roughly 13,000-fold increase. The Finance Ministry said UPI is now operational in 11 countries and has become one of the most successful pillars of digital public infrastructure.

The Securities and Exchange Board of India issued a circular introducing an Information Technology Resilience Index for market infrastructure institutions, which include stock exchanges and depositories. The index assesses these institutions across nine parameters as part of efforts to strengthen the resilience of their IT systems.

The Public Private Partnership Appraisal Committee gave in-principle approval to the Civil Aviation Ministry’s proposal for a third round of airport privatisation, covering 11 airports across five bundles. Amritsar, Kangra, Tiruchirappalli and Tirupati are among the airports being considered.

The Reserve Bank of India released the All-India House Price Index for Q1:2026-27 on 24 August. The index grew 3.6% year-on-year, the same pace as in the first quarter of the previous year, and rose 1.1% over the preceding quarter to 117.5. The index tracks 18 major cities and uses 2022-23 as its base year.

The GST Council, chaired by Union Finance Minister Nirmala Sitharaman, is scheduled to meet in New Delhi on 12 September, preceded by an officers’ meeting on 11 September. The Council, which includes State Finance Ministers, last met in 2025 for its 56th meeting, at which the Centre and States agreed on a major restructuring of GST rates.

The Reserve Bank of India’s monthly bulletin named the West Asia conflict as a continuing challenge to the economy. It nonetheless described domestic demand as buoyant, pointing to indicators such as vehicle sales and petroleum product consumption remaining in positive territory.