Current Affairs - Economy

Rs.25,000 per month is the revised wage ceiling approved by the Union Cabinet for mandatory coverage under the Employees’ Provident Fund Organisation (EPFO). The ceiling was increased from Rs.15,000, which had remained unchanged since September 2014. The revision is expected to bring approximately 51 lakh additional employees under mandatory EPFO coverage. These employees will gain access to benefits such as the Employees’ Provident Fund, Employees’ Pension Scheme, and Employees’ Deposit Linked Insurance Scheme. The government estimates an annual expenditure of Rs.11,339 crore, with the total financial outlay projected at Rs.56,696 crore over five years.

India’s Labour Force Participation Rate (LFPR) for individuals aged 15 years and above was estimated at 55.6% in August 2026, according to the latest Periodic Labour Force Survey (PLFS) data. The rate increased from 55.4% in July 2026, representing a rise of 0.2 percentage points. The increase was mainly driven by rural areas, where LFPR rose from 58.0% to 58.2%, while urban LFPR remained unchanged at 50.4%. The PLFS is conducted by the National Statistical Office (NSO) under the Ministry of Statistics and Programme Implementation (MoSPI).

India’s Wholesale Price Index (WPI) inflation increased to 9.92% in August 2026 from 9.78% in July 2026, according to preliminary estimates released by the Ministry of Commerce and Industry. The August inflation data was calculated using the revised base year 2022-23. Among the major commodity groups, Fuel and Power recorded the highest inflation at 22.93%, followed by Manufactured Products at 8.37% and Primary Articles at 7.76%. The WPI food index also increased to 7.05% in August from 6.65% in July, reflecting continued price pressures across important wholesale commodity categories.

India’s retail inflation, measured through the Consumer Price Index (CPI), rose to 4.82% in August 2026, compared with 4.45% in July 2026. The increase reflected higher price pressures across both rural and urban areas. Rural CPI inflation reached 5.23%, while urban inflation stood at 4.31%. Food inflation, measured through the Consumer Food Price Index (CFPI), also increased to 5.95% from 5.52% in July. The August CPI figures were based on the new 2024=100 base year and were released provisionally by the Ministry of Statistics and Programme Implementation (MoSPI).

SBI Research revised India’s real GDP growth forecast for FY27 upward to 7.3% from its earlier estimate of 6.6% on September 1, 2026. The revision followed strong economic performance in Q1 FY27, when real GDP growth reached 7.8%, and GVA growth stood at 8.2%. The improved forecast is supported by stronger industrial production, services activity, credit demand, and resilient domestic consumption. SBI Research projected quarterly growth of 7.3% in Q2, 7.2% in Q3, and 6.9% in Q4. The report also highlighted robust manufacturing, services, capital formation, and export growth as important contributors.