Economy & Business Current Affairs - 2026-04-16

Background: The Reserve Bank of India (RBI) uses the repo rate as a primary tool to control inflation and manage liquidity. Current Context: As of April 2026, the Monetary Policy Committee (MPC) has decided to keep the repo rate unchanged at 6.5% to balance growth and price stability. This decision comes amidst fluctuating global commodity prices and domestic supply chain constraints. Impact: This move aims to keep borrowing costs stable for businesses and consumers, fostering a predictable environment for long-term investment and supporting the ongoing economic recovery trajectory.

Background: The government has been actively promoting the 'Make in India' initiative to transform the nation into a global manufacturing hub. Current Context: In April 2026, the Ministry of Finance initiated a comprehensive review of the corporate tax structure specifically for the manufacturing sector. The goal is to simplify compliance and offer targeted incentives for high-tech industries. Impact: This policy shift is expected to attract significant Foreign Direct Investment (FDI), reduce operational costs for domestic manufacturers, and create large-scale employment opportunities, thereby strengthening India's position in the global supply chain.