Current Affairs - Economy

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.

SBI Research projected India’s real GDP growth at 8% for the April-June quarter (Q1 FY27), exceeding the Reserve Bank of India’s projection of 7%. The forecast was based on a Nowcasting Model using 54 high-frequency indicators covering agriculture, industry, and services. Economic activity showed broad improvement, with 86% of 50 leading indicators recording growth. IIP growth accelerated to 7.3% in June, while services exports and airport cargo traffic also recorded strong growth. The report highlighted robust industrial activity, credit growth, and government capital expenditure as key factors supporting the growth outlook.

India’s retail inflation rose marginally to 4.45% in July 2026, compared with 4.38% in June 2026. The increase was mainly driven by higher food prices, with Consumer Food Price Index (CFPI) inflation rising to 5.52% from 5.32% in June. The July figures were based on the revised Consumer Price Index (CPI), which uses 2024 as its base year. Rural retail inflation stood higher at 4.84%, while urban inflation was 3.96%. Among major states, Telangana recorded the highest inflation at 6.32% in July.