Economy & Business Current Affairs - 2026-04-26

Background: The Reserve Bank of India's Monetary Policy Committee regularly reviews economic conditions to decide on key interest rates and monetary policy stance, aiming to balance inflation control with growth objectives. Current Context: In its latest meeting concluding on April 25, 2026, the MPC decided to maintain the repo rate at 6.5% for the seventh consecutive time, citing persistent global uncertainties and a need to ensure inflation aligns with the target. The stance remained 'withdrawal of accommodation'. Impact: This decision signals the RBI's cautious approach, providing stability for borrowers and investors while closely monitoring inflation trajectory. It suggests that future rate cuts might be contingent on sustained moderation in price pressures and robust economic growth.

Background: India's economic growth is closely watched, with quarterly GDP figures providing crucial insights into the nation's economic health and trajectory. Strong growth is vital for job creation and development. Current Context: Leading financial institutions and the National Statistical Office (NSO) have released their advance estimates for India's Q4 FY26 GDP growth, projecting it to be around 7.2-7.5%. This robust performance is attributed to strong domestic demand, government capital expenditure, and a resilient manufacturing sector. Impact: Higher-than-expected growth projections boost investor confidence, potentially attracting more foreign direct investment. It also provides fiscal space for the government to pursue welfare programs and infrastructure development, reinforcing India's position as a fast-growing major economy.

Background: The Indian government has been actively promoting domestic manufacturing and reducing import dependence through various Production-Linked Incentive (PLI) schemes across key sectors to boost economic growth and create jobs. Current Context: On April 24, 2026, the Ministry of New and Renewable Energy unveiled a new PLI scheme specifically for the Green Hydrogen sector, allocating ₹15,000 crore over five years. The scheme aims to incentivize domestic manufacturing of electrolysers and production of green hydrogen, aligning with India's net-zero targets. Impact: This initiative is expected to significantly boost indigenous manufacturing capabilities, attract private investment in renewable energy, and create a robust ecosystem for green hydrogen production. It will contribute to energy security, decarbonization efforts, and position India as a global leader in the green energy transition.