Current Affairs - Economy

NSE, or the National Stock Exchange of India, has partnered with the Indian Gas Exchange Limited (IGX) to introduce natural gas derivatives based on domestic pricing. This initiative marks a significant step in India’s financial and energy markets, as it will be the first time derivatives are linked to a domestic benchmark rather than international indices. The contracts will be based on the Gas IndeX of India (GIXI), ensuring transparency and real-time pricing. This move is expected to enhance risk management, improve market efficiency, and attract broader participation from investors and stakeholders.

India’s industrial output recorded a growth of 5.2% in February 2026, indicating a modest improvement compared to the previous month. This growth was largely driven by the manufacturing sector, which plays a dominant role in the Index of Industrial Production (IIP). While manufacturing showed strong recovery, other sectors such as mining and electricity displayed mixed trends, slightly limiting overall momentum. The data released by the National Statistics Office reflects a gradual industrial recovery despite challenges like rising input costs and global geopolitical tensions affecting production and profitability across industries.

The projected GDP growth rate for India in FY2026-27 is estimated at 6.5%, indicating a slowdown compared to the current fiscal year’s higher growth rate. This moderation is attributed to rising global crude oil prices, geopolitical tensions in West Asia, and supply chain disruptions. These factors contribute to increased inflation, higher production and transportation costs, and reduced consumer spending. Additionally, the widening current account deficit reflects higher import bills, especially for energy resources. Despite these challenges, the Indian economy remains resilient, but external pressures are expected to influence overall economic performance in the coming fiscal year.

3rd is India’s global rank in the renewable energy market in 2025 as per the IRENA Renewable Capacity Statistics 2026 report. This achievement reflects India’s rapid expansion in renewable energy capacity, which reached 250.5 GW. The growth was largely driven by significant additions in solar and wind energy, including 37 GW of solar capacity and a record increase in wind power. India now stands behind only China and the United States in renewable energy capacity, highlighting its strong commitment to sustainable energy development and its growing role in the global transition to clean energy.

Income Tax Department launched the ‘Kar Saathi’ AI-powered assistant along with a new official website to streamline and simplify the tax-filing process. This initiative aims to provide taxpayers with a centralised and user-friendly platform for accessing direct tax-related services and information. The AI chatbot offers round-the-clock assistance, helping users resolve queries efficiently. As part of broader administrative reforms, the move aligns with efforts to modernise tax systems, reduce complexity, and enhance transparency. The initiative also supports the government’s vision of a technology-driven tax framework under the upcoming Income Tax Act, 2025.