FDI Inflows $95 Bn in FY26; Rupee Depreciates 10.6% Amid Strong Forex Reserves of $682 Bn

RBI Holds Repo Rate at 5.25% as CPI Inflation Hits 4.38% in June; Forex Reserves Near $700 Bn

RBI's MPC kept repo rate unchanged at 5.25% for the fourth time, prioritizing growth despite CPI inflation rising to 4.38% in June, above the 4% target. Elevated global crude prices and geopolitical uncertainties are key concerns. The central bank is using tools like dollar-rupee swaps and FCNR(B) deposits to manage liquidity and shore up forex reserves near $700 billion, while the rupee recovers to around ₹95.

BRICS Summit 2026: India Hosts Xi Jinping, Putin Amid Western Sanctions, TRIPS Waiver, CBAM Concerns

India hosts the 2026 BRICS summit (September 12-13) with Xi Jinping, Putin and Iran's President amid escalating Western sanctions against key members. The article explains why India may need BRICS as a risk mitigant against the weaponisation of the Western financial system, covering SWIFT bans, TRIPS waiver denial, Chabahar sanctions and CBAM trade barriers. For exams, this is a ready case study on Global South's push for alternative financial architecture.

RBI Steps Up Rupee Internationalisation Push: BRICS Task Force, UPI & CBDC for Faster Cross-Border Payments

RBI Governor Sanjay Malhotra announced a renewed push for rupee internationalisation at a FICCI-IBA event. The RBI is exploring faster cross-border payments via UPI linkages, CBDCs, and a BRICS task force. MoUs have been signed with UAE, Mauritius, Maldives, and Indonesia to promote local currency trade, aiming to reduce dollar dependence and strengthen the rupee's global role.

World Bank ED Neelkanth Mishra: India Needs 10% Growth for Full Employment, AI Can Disrupt Education

Neelkanth Mishra, India's Executive Director at the World Bank, argues that India cannot create enough jobs for all at current growth rates, requiring 10% real growth for full employment. He highlights rising inequality as a natural outcome of labour surplus and capital shortage, and advocates democratising access to capital. He also discusses India's energy vulnerability, rupee stability, and the transformative potential of AI in education.

India's 8% GDP Growth Amid West Asia Shock; Structural Reforms Key for Sustained Growth

India's GDP growth is expected at 8% despite the West Asia conflict, driven by fiscal-monetary stimulus and export growth. However, fixed investment remains stagnant at 32% of GDP, and corporate capex is low. The article stresses urgent structural reforms to boost consumption, exports, and private investment for long-term growth. Essential for understanding current economic challenges and policy priorities.

India's Q1 GDP Growth Surprises at 7.8%, Manufacturing at 9.2% Despite West Asia Crisis

India's economy defied expectations with a robust 7.8% real GDP growth in Q1 FY26, led by manufacturing at 9.2% and strong services. However, the RBI's 125 bps rate cuts and a GST cut helped, but headwinds like high oil prices (>$80/bbl), deficient monsoon, and slowing global services demand pose a serious stamina test. For exams, this is a classic 'resilience vs. vulnerability' case study for GS3.

JCRA Upgrades India's Sovereign Rating to A- on 7.7% GDP Growth, NPA Ratio Falls to 1.8%

Japan Credit Rating Agency (JCRA) upgraded India's sovereign rating to A- from BBB+, citing strong economic growth of 7.7% in FY2026, robust private consumption, public investment, and improvements in the banking sector. The upgrade reflects India's sustained growth trajectory and enhanced financial stability, with gross NPA ratio falling to 1.8% due to IBC and RBI supervision.

UPI Should Remain Free Public Good: ₹2,000 Cr Subsidy, ₹1,500 Cr Saved on Currency

The article argues against imposing surcharges on UPI payments, framing the digital payment system as a public good. It claims the real driver for the shift in policy is U.S. pressure, through tariffs and trade deals, to protect American financial companies (Visa, Mastercard) against India's free, state-backed UPI system.