Economy & Business Current Affairs - 2026-10-26

Background: The Reserve Bank of India (RBI) manages systemic liquidity to balance inflation and growth. Current Context: As of October 26, 2026, the RBI has continued its calibrated withdrawal of accommodation to address persistent inflationary pressures in the food and energy sectors. The central bank is monitoring global geopolitical tensions that impact domestic supply chains. Impact: This policy ensures that the banking system remains stable while preventing excessive money supply, thereby supporting the long-term objective of keeping inflation within the target band of 4% (+/- 2%) for the fiscal year.

Background: The manufacturing sector is a key pillar of India's GDP growth strategy under the 'Make in India' initiative. Current Context: Data released in late October 2026 indicates that the manufacturing Purchasing Managers' Index (PMI) remains in the expansion zone. Despite global demand fluctuations, domestic consumption and increased capital expenditure by the government have bolstered industrial output. Impact: The sustained growth in manufacturing is expected to boost employment generation and attract higher Foreign Direct Investment (FDI), strengthening India's position as a global manufacturing hub in the final quarter of 2026.