Current Affairs - Economy

93.2% was Delhi’s own revenue share as a proportion of total revenue collections in the FY25 Budget Estimates, making it the highest among the comparable states and Union Territories with available data. Haryana ranked second with 80.4%, followed by Telangana at 78.4%, Karnataka at 77.3%, and Tamil Nadu at 75.5%. Own revenue consists of own tax revenue and own non-tax revenue, including sources such as fees, royalties, dividends, and user charges. The indicator helps compare the extent to which states generate revenue from their own sources rather than relying on central tax transfers and grants.

$729.3 billion was the record level reached by India’s foreign exchange reserves in the week ended August 21. The reserves increased by $12.4 billion, surpassing the previous record of $728.5 billion recorded in February. The rise was supported by strong capital inflows following the RBI’s concessional swap window and revaluation gains. Foreign Currency Assets increased to $591.33 billion, while gold reserves rose to $114.22 billion. The RBI’s swap window had brought in around $72.8 billion by August 21. At the new record level, India’s forex reserves were sufficient to cover more than 11 months of goods imports.

India’s finished steel consumption increased by 7.9% during April-July 2026, reaching 56 million tonnes (MT), compared with 52 MT during the corresponding period of the previous year. The growth in consumption was higher than the 4.7% increase in finished steel production, which reached 54.7 MT. This stronger rise in consumption indicates robust domestic demand, particularly from infrastructure and construction-related industries. During the same period, India’s crude steel production also increased by 2.4% to 56.2 MT, reflecting continued growth in the country’s steel sector.

India’s unemployment rate for individuals aged 15 years and above declined to 5.1% in July 2026, compared with 5.5% in June 2026, according to the Periodic Labour Force Survey (PLFS) Monthly Bulletin released by the National Statistics Office (NSO). The decline was accompanied by improvements in labour market indicators. The overall Labour Force Participation Rate (LFPR) increased to 55.4%, while the Worker Population Ratio (WPR) rose to 52.5%. Rural unemployment also decreased to 4.5%. The survey used the Current Weekly Status (CWS) approach for estimating employment and unemployment conditions.

Ind-Ra has raised its forecast for India’s GDP growth in FY27 to 6.8%, up from its earlier estimate of 6.7%. The revision is mainly attributed to lower crude oil prices, with the agency reducing its baseline crude oil price assumption from $95 to $85 per barrel. However, Ind-Ra highlighted several risks, including El Niño conditions, high inflation, geopolitical tensions in West Asia, weak global trade, and unfavourable agricultural conditions. The projected growth remains below the 7.6% growth rate given in the provisional FY26 estimates by the National Statistical Office.