Current Affairs - Economy

According to the Federation of Automobile Dealers Associations (FADA), electric passenger vehicle retail sales recorded an approximate year-on-year growth of 108% in June 2026, increasing from 15,318 units in June 2025 to 31,823 units in June 2026. This remarkable rise also boosted the segment's market share to 7.7% of total passenger vehicle sales. The strong performance reflects the increasing adoption of electric mobility in India, supported by growing consumer demand, improved charging infrastructure, wider model availability, and continued emphasis on clean and sustainable transportation solutions.

India's gross GST collections recorded a year-on-year growth of 13.9% in June 2026, reaching ₹1,94,812 crore compared to ₹1,71,105 crore in June 2025. After accounting for refunds, net GST collections stood at ₹1,62,377 crore, reflecting an annual growth of 11.2%. The increase was driven mainly by strong import-related GST revenue, which surged by 34.6%, while domestic GST collections grew by 6.5%. The robust revenue performance highlights improved tax compliance, effective digital tax administration, and sustained economic activity despite global uncertainties, reinforcing the strength of India's GST framework.

India's industrial output grew by 5.1% in May 2026, the highest growth rate recorded in the previous five months. The increase was driven primarily by strong performance in the electricity and gas supply sector, robust manufacturing activity, and higher capital goods production. The data, released by the National Statistics Office (NSO), also reflected the adoption of the new 2022–23 base year for the Index of Industrial Production (IIP). A key methodological change was the replacement of the Wholesale Price Index (WPI) with the Output Producer Price Index (Output PPI), improving the accuracy of industrial output estimation and providing a better measure of real industrial growth.

Odisha launched the Go East initiative on June 26, 2026, under the leadership of Chief Minister Mohan Charan Majhi to promote industrial investment and accelerate project implementation. The initiative establishes a high-level Special Task Force and a dedicated Go East Cell within IPICOL to facilitate inter-state investments. It also includes revisions to the Industrial Policy Resolution-2022, prioritizes non-mineral industries, and aims to reduce industrial setup time from 160 days to less than 100 days through deregulation reforms. The programme is expected to strengthen investment, generate employment, and develop future-ready industrial hubs in the state.

S&P Global Ratings has projected India's GDP growth at 6.6% for FY27, indicating a moderation from the estimated 7.7% growth in FY26. The agency attributed the slower growth outlook to continued energy market disruptions, rising fuel prices, and expectations of a below-normal southwest monsoon influenced by El Niño conditions. These factors could increase inflationary pressures and affect economic activity. S&P also expects inflation to rise in FY27, which may prompt the Reserve Bank of India to consider monetary policy adjustments, including a possible 25-basis-point increase in the repo rate to maintain economic stability and control inflation.