Current Affairs - Economy

3.2% was the year-on-year growth rate recorded in gross GST collections for May 2026. During the month, gross GST revenue reached ₹1.94 lakh crore, reflecting steady growth in tax collections. The increase was supported by higher economic activity, with taxable goods supplies growing by 26.9% and taxable services supplies rising by 22.2%. After accounting for refunds of ₹27,281 crore, net GST revenue stood at ₹1.67 lakh crore, registering a 3.3% increase. GST, implemented on July 1, 2017, remains one of India's most significant indirect tax reforms aimed at creating a unified national market.

Bajaj Finserv launched the Finserv Intelligence initiative on May 29, 2026, with a planned investment of ₹1,500–2,000 crore over five years. The initiative is designed to develop scalable technology solutions for global markets by focusing on advanced fields such as artificial intelligence, cybersecurity, quantum technologies, and fintech platforms. The company has partnered with IIT Bombay for research and plans to build a specialised team of researchers and PhDs. It also aims to support early-stage startups and create technology solutions covering multiple Indian languages and dialects, helping bridge the gap between research and practical innovation in India.

India's industrial production, measured by the Index of Industrial Production (IIP), recorded a growth rate of 4.9% in April 2026 compared to the same month in the previous year. The increase was driven mainly by the manufacturing sector, which grew by 6.2% and emerged as the key contributor to industrial expansion. During the same period, the government introduced a new IIP series with the base year 2022-23, replacing the earlier 2011-12 series. The revised series includes broader sector coverage, updated weights, additional products, and new categories such as gas supply and water management, making industrial measurement more representative of India's evolving economy.

Steel Authority of India Limited (SAIL) signed a Memorandum of Understanding (MoU) with the Management Development Institute (MDI), Gurgaon, on May 20, 2026, to strengthen executive education and leadership development. The collaboration aims to create future-ready leaders through specialised leadership programs, strategy-focused learning interventions, overseas learning opportunities, and joint research initiatives. The partnership also emphasises action learning and customised case studies to generate measurable business outcomes. Implemented through SAIL’s Management Training Institute (MTI), the initiative operates under the Ministry of Steel and reflects SAIL’s commitment to enhancing managerial capabilities and organisational excellence within the public sector enterprise.

ICRA revised India's GDP growth forecast for FY27 to 6.2% on May 19, 2026, reducing it from its earlier estimate of 6.5%. The revision was influenced by concerns over rising crude oil prices, which were projected to average $95 per barrel during FY27 due to geopolitical tensions in West Asia and persistent supply constraints. The agency also highlighted challenges such as slowing global economic growth, weaker merchandise exports, and shipping disruptions. Despite the downward revision, the forecast reflects continued economic expansion, although at a more moderate pace than previously expected. The assessment provides important insights into India's growth outlook and macroeconomic conditions.