Economy & Business Current Affairs - 2026-04-18

Background: The Reserve Bank of India (RBI) periodically adjusts its liquidity management framework to maintain price stability and support economic growth. Current Context: As of April 2026, the RBI has initiated a review of the current liquidity absorption tools to address the surplus cash in the banking system caused by increased credit growth. Impact: This move is expected to stabilize short-term interest rates and ensure that the banking sector remains resilient against global market volatility, ultimately helping in controlling inflationary pressures across the Indian economy.

Background: India has set ambitious targets for renewable energy capacity to meet its net-zero goals. Current Context: The Ministry of Commerce and Industry is drafting new Foreign Direct Investment (FDI) guidelines specifically for the green hydrogen and solar manufacturing sectors. These norms aim to simplify the approval process for international investors. Impact: By easing entry barriers, the government expects a significant inflow of foreign capital, which will accelerate the transition to sustainable energy, create domestic jobs, and reduce India's dependence on imported fossil fuels.