Current Affairs - Economy

₹5,925 is the Minimum Support Price approved for Raw Jute (TD-3 grade) for the 2026-27 marketing season. The decision was taken by the Cabinet Committee on Economic Affairs to ensure better remuneration for jute farmers. This price guarantees a return of 61.8% over the all-India weighted average cost of production, in line with the government’s commitment to fix MSP at least 1.5 times the production cost. The revised MSP represents an increase over the previous season and aims to promote jute cultivation, strengthen rural incomes, and support the overall jute industry supply chain.

7.2% is the GDP growth rate projected by ICRA for India in the third quarter of FY26. This estimate reflects a moderation compared to the 8.2% growth recorded in the second quarter. The slowdown has been attributed to weaker performance in services and agriculture, even though the industrial sector showed improvement. Key contributing factors include a high base effect, a significant decline in central government capital expenditure, nearly flat state spending, subdued exports, and reduced services export growth. However, festive demand supported economic activity, helping maintain overall growth above the 7% mark during the quarter.

India’s total forex reserves reached a historic high of $725.727 Billion for the week ended February 13. This significant milestone reflects strong macroeconomic stability and effective currency management by the Reserve Bank of India. The surge was primarily driven by an increase in Foreign Currency Assets (FCA), which stood at $573.603 billion, and a substantial rise in gold reserves, which reached $128.466 billion. Additionally, Special Drawing Rights (SDRs) contributed to the overall reserves. The record level enhances India’s external sector strength, supports currency stability, and provides a strong buffer against global economic volatility and financial uncertainties.

Reliance announced a ₹10 trillion investment in artificial intelligence to develop sovereign compute infrastructure across India. The plan includes building multi-gigawatt AI data centres, deploying edge-compute layers integrated with telecom networks, and delivering affordable AI services nationwide. A major facility is under development in Jamnagar, with phased capacity expansion planned. The initiative emphasises reducing dependence on foreign cloud providers and ensuring national data security. Supported by green energy projects, the investment aligns with long-term goals of strategic resilience, digital self-reliance, and scalable AI adoption across industries and government services.

India’s eight core industries recorded a growth rate of 4% in January 2026, reflecting a moderation compared to the revised 4.7% growth in December 2025. The Index of Core Industries, which tracks coal, crude oil, natural gas, refinery products, fertilisers, steel, cement, and electricity, serves as a key indicator of industrial momentum. While sectors like steel and cement continued to show strong performance due to sustained infrastructure and construction activities, others experienced slower growth or contraction. Despite the slowdown in core sectors, overall industrial production remained strong during the period.