Current Affairs - Economy

India's Wholesale Price Index (WPI) inflation increased to 9.87% in June 2026, up from 9.68% in May 2026. The rise was primarily driven by higher prices of food products, mineral oils, basic metals, and chemicals, reflecting continued cost pressures across multiple sectors. During the same period, the Wholesale Price Index increased from 109.9 to 110.2. While fuel and power inflation moderated compared to the previous month, elevated food and manufacturing-related prices continued to keep wholesale inflation at a high level, indicating persistent inflationary trends in the economy.

India's merchandise trade deficit reached $30.43 billion in June 2026, compared to $19.10 billion in June 2025, reflecting a year-on-year increase of 59%. During the month, merchandise exports stood at $40.41 billion, while imports were significantly higher at $70.84 billion, resulting in a wider trade gap. The increase was driven by elevated import costs, weaker export momentum compared to the previous month, and challenging global economic conditions. A persistently high trade deficit can put pressure on the current account, currency stability, and inflation, making trade policy and export growth key priorities.

Under the new EPFO 3.0 reforms, eligible online PF advance claims linked with Aadhaar and verified KYC are processed much faster than before. The claim settlement period has been reduced from the earlier 7–20 working days to just 3 working days, making the withdrawal process quicker and more efficient. This digital initiative also includes a higher auto-settlement limit of ₹5 lakh, simplified withdrawal categories, and mandatory retention of 25% of the EPF balance while an employee remains in service. The reforms aim to improve convenience while protecting long-term retirement savings.

The International Monetary Fund (IMF) revised India's GDP growth forecast for FY27 to 6.4%, lowering it from the earlier estimate of 6.5%. The revision reflects concerns over rising global energy prices, including higher crude oil, natural gas, and fertilizer costs, which are expected to increase inflationary pressures and impact economic growth. Despite the downgrade, India's economy continues to be supported by strong domestic consumption and a resilient services sector. The IMF also expects growth to improve in FY28 as energy-related pressures ease, keeping India among the world's fastest-growing major economies.

According to the United Nations Conference on Trade and Development (UNCTAD), global Foreign Direct Investment (FDI) increased by 6% in 2025, reaching a total of $1.6 trillion. This marked the end of a two-year decline in global investment flows. Developed economies recorded stronger growth in FDI inflows than developing economies, while a significant share of global investments remained concentrated in the top recipient countries. The report also highlighted increasing investment in strategic greenfield projects, reflecting growing interest in sectors that support long-term economic growth, innovation, and sustainable development.