Current Affairs - Economy

India's economy recorded a strong GDP growth rate of 7.8% in the fourth quarter (January–March) of FY26, outperforming projections made by the Reserve Bank of India and major market estimates. The growth was driven by robust investment activity, expansion in the services sector, improved agricultural output, and steady construction growth. This performance contributed to the upward revision of the full-year FY26 GDP growth estimate to 7.7%. Strong domestic demand, increased capital formation, and resilience against global economic uncertainties and geopolitical tensions helped sustain India's economic momentum during the quarter.

3.2% was the year-on-year growth rate recorded in gross GST collections for May 2026. During the month, gross GST revenue reached ₹1.94 lakh crore, reflecting steady growth in tax collections. The increase was supported by higher economic activity, with taxable goods supplies growing by 26.9% and taxable services supplies rising by 22.2%. After accounting for refunds of ₹27,281 crore, net GST revenue stood at ₹1.67 lakh crore, registering a 3.3% increase. GST, implemented on July 1, 2017, remains one of India's most significant indirect tax reforms aimed at creating a unified national market.

Bajaj Finserv launched the Finserv Intelligence initiative on May 29, 2026, with a planned investment of ₹1,500–2,000 crore over five years. The initiative is designed to develop scalable technology solutions for global markets by focusing on advanced fields such as artificial intelligence, cybersecurity, quantum technologies, and fintech platforms. The company has partnered with IIT Bombay for research and plans to build a specialised team of researchers and PhDs. It also aims to support early-stage startups and create technology solutions covering multiple Indian languages and dialects, helping bridge the gap between research and practical innovation in India.

India's industrial production, measured by the Index of Industrial Production (IIP), recorded a growth rate of 4.9% in April 2026 compared to the same month in the previous year. The increase was driven mainly by the manufacturing sector, which grew by 6.2% and emerged as the key contributor to industrial expansion. During the same period, the government introduced a new IIP series with the base year 2022-23, replacing the earlier 2011-12 series. The revised series includes broader sector coverage, updated weights, additional products, and new categories such as gas supply and water management, making industrial measurement more representative of India's evolving economy.

Steel Authority of India Limited (SAIL) signed a Memorandum of Understanding (MoU) with the Management Development Institute (MDI), Gurgaon, on May 20, 2026, to strengthen executive education and leadership development. The collaboration aims to create future-ready leaders through specialised leadership programs, strategy-focused learning interventions, overseas learning opportunities, and joint research initiatives. The partnership also emphasises action learning and customised case studies to generate measurable business outcomes. Implemented through SAIL’s Management Training Institute (MTI), the initiative operates under the Ministry of Steel and reflects SAIL’s commitment to enhancing managerial capabilities and organisational excellence within the public sector enterprise.