Current Affairs - Economy

India’s WPI inflation rose to 1.81% in January 2026, reaching a 10-month high and registering the third consecutive monthly increase. The rise was primarily driven by higher prices of food articles, non-food items, and manufactured products such as basic metals and textiles. Food inflation turned positive, and manufacturing inflation strengthened, indicating increasing producer-level price pressures. However, fuel and power remained in deflation, which helped moderate the overall surge. While WPI reflects wholesale-level price changes, the Reserve Bank of India mainly targets CPI inflation for monetary policy decisions, making this divergence significant for economic analysis.

The RBI Digital Payments Index for September 2025 stood at 516.76, indicating significant growth in digital payment adoption across India. This increase from the previous value of 493.22 in March 2025 reflects improvements in key parameters such as Payment Performance and Payment Enablers. The index measures the extent of digitisation in the country and includes factors like infrastructure, transaction volume, and consumer centricity. A higher index value signifies deeper penetration of digital payment systems, showcasing India’s steady progress toward a less-cash and more transparent economy supported by robust digital infrastructure.

The SBI report highlights a significant boost to India’s agricultural exports to the United States, with 75% of export items now receiving zero-tariff access. This improved tariff framework enhances price competitiveness and expands market opportunities for Indian exporters. Agricultural products worth over $1 billion are assured zero reciprocal tariff benefits, strengthening India’s existing $1.3 billion trade surplus in agri-trade with the US. Key beneficiary sectors include rice, fisheries, tea, coffee, and spices. The move is expected to increase export volumes, improve price realisation, and support farmers and rural income growth through better global market integration.

Uttar Pradesh presented its first-ever Economic Survey 2025-26, marking a significant milestone in the state’s fiscal and developmental planning. The survey outlines a comprehensive, investment-led growth strategy aimed at transforming the state into a $1 trillion economy. It highlights strong Gross State Domestic Product growth, rising investor confidence, and major infrastructure expansion, including expressways and airports. The document also emphasises industrial cluster development, agricultural productivity, digital governance reforms, and improved law and order. With sustained double-digit growth and large-scale investment proposals, the state positions itself as a rapidly emerging economic powerhouse in India.

Bengaluru is the city where Union Minister Ashwini Vaishnaw inaugurated Zetwerk’s mega electronics plant. The facility is designed to support manufacturing for defence, automotive, and IT hardware sectors, strengthening India’s electronics ecosystem. This inauguration aligns with the government’s expanded manufacturing incentive scheme, which has been increased to ₹40,000 crore with an ambitious target of achieving $500 billion in electronics production by 2031 under the Silicon 2.0 initiative. The development also complements India’s long-term vision of building advanced semiconductor capabilities and supporting the journey toward a Viksit Bharat by 2047.