Current Affairs - Economy

The ₹4,000-crore loan for Haryana’s Jal Sanrakshit Haryana Water Security Project was approved by the World Bank to support sustainable water management and irrigation development in the state. The project aims to improve water conservation, modernise canals, enhance groundwater recharge, promote treated wastewater reuse, and increase irrigation efficiency. Haryana faces significant challenges such as groundwater depletion, waterlogging, and rising agricultural water demand. The funding will help rehabilitate hundreds of canals, upgrade irrigation infrastructure, and benefit large areas of agricultural land. The initiative is expected to strengthen long-term water security, improve farm productivity, and support climate-resilient development across Haryana.

India's gold imports recorded a significant decline of 39% month-on-month in May 2026, falling to $3.4 billion after the government raised the import duty on gold from 6% to 15%. The measure was introduced to reduce demand for imported gold and help conserve foreign exchange reserves. As a result, import volumes dropped sharply compared to previous months, while domestic gold prices increased. The policy also influenced investor behaviour, leading to net outflows from gold exchange-traded funds (ETFs) and a reduction in active investor accounts. The development highlights how changes in import duties can directly affect trade patterns, consumer demand, and investment activity.

India's cumulative exports for April–May 2026-27 reached US$ 162.69 billion, reflecting a growth rate of 14.66% compared to US$ 141.89 billion during the corresponding period of the previous year. This growth was driven by strong performance in both merchandise and services exports. Merchandise exports grew by 16.09%, while services exports increased by 12.99%. Key sectors contributing to export growth included petroleum products, engineering goods, and electronic goods. The positive export performance highlights the resilience of India's trade sector and its expanding presence in global markets, supported by increasing demand from major trading partners and diversified export destinations.

Odisha approved investment proposals worth approximately ₹76,612 crore across 20 major projects spanning sectors such as lab-grown diamonds, renewable energy, critical minerals, steel manufacturing, healthcare, and infrastructure. The approved projects are expected to generate more than 50,500 employment opportunities across nine districts. A significant highlight was the state's entry into the lab-grown diamond industry through large-scale manufacturing projects in Khordha district. Odisha also attracted investments in solar manufacturing, permanent magnets, rare earth materials, and steel production, strengthening its position as a leading industrial destination. These initiatives support economic diversification, regional development, clean energy goals, and long-term industrial growth within the state.

India's merchandise exports rose by 18% year-on-year to reach $45.2 billion in May 2026, reflecting strong performance in the country's external trade sector. During the same month, merchandise imports increased by 20.62% to $73.41 billion, resulting in a trade deficit of $28.21 billion. For the April–May 2026-27 period, total exports stood at $88.91 billion, registering a growth rate of 16.09% over the corresponding period of the previous year. The data highlights continued momentum in India's export sector despite global economic uncertainties. The Ministry of Commerce and Industry, through the Directorate General of Foreign Trade (DGFT), plays a key role in formulating policies that support and promote international trade.