Economy & Business Current Affairs - 2026-09-18

Background: India has consistently shown strong economic performance in recent years. The government has focused on structural reforms and infrastructure development to sustain growth. Current Context: Preliminary estimates for the third quarter of 2026 (July-September) indicate that India's Gross Domestic Product (GDP) is likely to have grown by approximately 7.5%. This growth is primarily attributed to robust domestic consumption, increased capital expenditure by the government, and a steady performance in the manufacturing and services sectors. Impact: This sustained GDP growth reinforces India's position as one of the fastest-growing major economies globally. It is expected to boost investor confidence, create employment opportunities, and contribute to improved living standards. The positive economic outlook also aids in fiscal consolidation efforts.

Background: The Reserve Bank of India (RBI) manages monetary policy to ensure price stability and support economic growth. The Monetary Policy Committee (MPC) regularly reviews key interest rates. Current Context: In its latest bi-monthly monetary policy review on September 17, 2026, the RBI's Monetary Policy Committee (MPC) decided to keep the policy repo rate unchanged at 6.5%. This decision comes as inflation figures for August 2026 remained within the target band of 2-6%, showing a stable trend. The MPC noted that while global economic uncertainties persist, domestic economic activity remains resilient. Impact: Maintaining the repo rate provides stability and predictability for businesses and consumers, supporting credit flow and investment. It signals the RBI's confidence in managing inflation while ensuring that monetary policy remains accommodative enough to foster economic recovery and growth.