Current Affairs - Economy

India prohibited the export of raw, white, and refined sugar until September 30, 2026, through an amendment to the trade policy announced by the Ministry of Commerce and Industry. The decision was taken to ensure adequate domestic supply and stabilise sugar prices in the local market. The prohibition applies to specific ITC (HS) codes under Chapter 17 of the trade classification system. Certain exemptions continue for quota-based exports to the European Union and the United States, shipments under the Advance Authorisation Scheme, and consignments related to international food security commitments. If not extended further, the export status will revert to “Restricted” after September 2026.

India’s annual inflation rate based on the Wholesale Price Index (WPI) stood at 8.3% in April 2026 on a provisional basis. The increase was mainly driven by higher prices of mineral oils, crude petroleum, natural gas, basic metals, and manufactured products. Fuel and power recorded a particularly sharp rise due to higher mineral oil prices, while primary articles also witnessed strong inflationary pressure. The WPI is released every month by the Office of the Economic Adviser under the Ministry of Commerce and Industry. Manufactured products carry the highest weightage in the WPI basket, making them a key factor in overall inflation trends.

The Centre revised the customs duty on precious metals on May 13, 2026, to safeguard macroeconomic stability and conserve foreign exchange reserves. Under the revised structure, the import duty on gold and silver was increased significantly from 6% to 15%, while platinum duty was raised to 15.4%. The policy aims to reduce non-essential imports and ease pressure on India’s Current Account Deficit (CAD). The decision was also influenced by global crude oil volatility and supply-side disruptions affecting international trade and shipping. The Ministry of Finance manages such economic and taxation policies to maintain financial stability in the country.

The National Statistics Office (NSO) revised the annual release schedule for the Provisional Estimates of Annual GDP and Fourth Quarter GDP to June 7 each year. Earlier, the data was released on the last working day of May. The revision was made after consultations with the Advisory Committee on National Accounts Statistics (ACNAS). The new schedule allows the inclusion of important corporate financial data and finalised Central Government account figures such as taxes, subsidies, and capital expenditure. The NSO, functioning under the Ministry of Statistics & Programme Implementation, is responsible for compiling national accounts and major macroeconomic indicators in India.

Moody's Investors Service revised India's GDP growth forecast to 6% for both 2026 and 2027 due to rising energy costs and geopolitical tensions affecting the economy. The downgrade reflects concerns over subdued private consumption, weaker industrial activity, and reduced capital formation. India’s dependence on imported energy, especially crude oil and LPG passing through the Strait of Hormuz, increases vulnerability to global disruptions. Higher fuel and fertiliser costs may also strain government finances and reduce capital spending. Moody’s is one of the world’s leading credit rating agencies and closely monitors global economic and financial conditions.