Highlights of this Issue
Repo rate increased to 5.5% (p. 2)
RBI’s Monetary Policy Committee voted to increase the repo rate from 5.25% to 5.5%. The standing deposit facility rate, marginal standing facility rate and bank rate were also increased by 0.25 percentage points.
CPI inflation averaged 4.9% in the second quarter of 2026-27 (p. 2)
CPI inflation was higher compared to the same quarter last year (1.7%). Food inflation average 6.4% during the second quarter of 2026-27. WPI inflation averaged 10.4%.
Cabinet approves sale of majority stake in IDBI Bank (p. 2)
A subsidiary of Fairfax Financial Holdings will acquire a 60.7% stake for Rs 52,878 crore. After the sale, the central government and LIC will retain 15% and 19% stakes, respectively.
GST_Council_recommends">GST Council recommends several changes (p. 2)
The Council has recommended removing arrest powers. It also recommended measures to simplify registration and expedite refunds.
Cabinet approves a growth fund for small and medium enterprises (p. 4)
The fund will provide long-term equity capital to small and medium enterprises. A major share will be directed towards manufacturing-focused enterprises. The government will commit Rs 10,000 crore towards this fund.
Cabinet approves the Container Manufacturing Promotion Scheme (p. 4)
The scheme will provide operational expenditure assistance to bridge cost gap. It will also provide interest subvention on loans for setting up or expanding manufacturing facilities.
National Social Assistance Programme to continue until 2030-31 (p. 5)
The programme will continue between 2026-27 and 2030-31 with an expected outlay of Rs 53,428 crore over five years. Disability pension has been increased.
Rules on qualifications, selection, and conditions of service in Tribunals notified (p. 6)
These apply to 15 Tribunals covered under the Tribunals Reforms Act, 2026. Serving judges and officers appointed to Tribunals must resign or take voluntary retirement from their parent service.
Draft National Steel Policy: Vision 2047 released for public consultation (p. 6)
The Policy aims to increase crude steel production capacity to 604 million tonnes per annum by 2047. It also aims to reduce import dependence for coking coal and reduce emission intensity.
Guidelines released under the Mobile Phone Manufacturing Scheme (p. 9)
The guidelines specify eligibility criteria for applicants under the Target Segment 1 and provide details on computation of incentives. They also prescribe minimum local manufacturing requirements.
Standing Committees of Parliament have identified issues to examine (p. 14)
Topics include regulation of AI and deepfakes, railway safety, the National Critical Minerals Mission, flood management and dam safety, implementation of the National Education Policy, and tax reforms.