Current Affairs - Economy

SBI Research projected India’s GDP growth at approximately 7% for Q1 FY27 in its Pre-Monetary Policy Committee (MPC) report released on August 1, 2026. This estimate is higher than the RBI’s earlier downgraded projection of 6.6%. Several economic indicators supported the optimistic outlook, including 7.3% growth in the Index of Industrial Production (IIP), 19.2% expansion in industrial activity and credit, and a 24.1% year-on-year increase in domestic passenger vehicle sales in June. Electricity demand and exports also recorded strong growth. SBI Research expects the economy to maintain momentum despite global uncertainties and geopolitical challenges.

The GI & Beyond 2.0 Summit is scheduled to be held on August 5, 2026, at the Dr. Ambedkar International Centre in New Delhi. Organised jointly by the Office of the Development Commissioner (Handlooms) and the Handloom Export Promotion Council (HEPC), the summit aims to promote India's GI-registered handloom and handicraft products. Key highlights include the launch of the Digital Handloom Atlas, unveiling of the HEPC Diamond Jubilee logo, participation of international buyers from around 10 countries, live weaving demonstrations, and an IIT Madras presentation on using Artificial Intelligence to strengthen the Geographical Indication ecosystem. Sessions will also focus on GI registration, intellectual property rights, and expanding domestic and global markets.

The Favara-UPI cross-border payment corridor connects the Maldives' instant payment system, Favara, with India's Unified Payments Interface (UPI), enabling users to transfer money instantly from the Maldives to UPI-linked bank accounts in India. Transactions are initiated in Maldivian Rufiyaa (MVR) and automatically converted into Indian Rupees (INR). The initiative was launched through collaboration between the Maldives Monetary Authority (MMA), the Reserve Bank of India (RBI), NPCI International Payments Limited (NIPL), and participating banks. It aims to simplify personal remittances, strengthen digital financial connectivity, and enhance economic cooperation between the two countries.

India's gross GST collections recorded a 15.4% year-on-year growth in July 2026, reaching ₹2.11 lakh crore. The increase was driven by strong domestic tax revenues of ₹1.45 lakh crore and a significant 28.8% rise in GST collected from imports. Net GST collections after refunds stood at ₹1.81 lakh crore, reflecting continued economic resilience and improved tax compliance. The data also highlighted efficient refund processing, robust consumer demand, and healthy business activity, making July 2026 one of the strongest months for GST revenue collection in the financial year.

India secured the 57th position in the 2023 Market Distortions Performance Index, improving significantly from 82nd place in 2010 and climbing 25 positions over 13 years. The Competere Foundation credited this progress to major structural and pro-competitive reforms such as the Goods and Services Tax (GST), Insolvency and Bankruptcy Code (IBC), regulatory simplification, and trade facilitation measures. The report highlighted improvements in ownership rights protection, domestic competition, and international competitiveness, reflecting India's efforts to create a more transparent, investment-friendly, and globally competitive economy that supports long-term sustainable growth.