NTPC and Nuclear Power Corporation of India Limited (NPCIL) have formed a joint venture (JV) to float a ₹28,000 crore tender. This tender is for the construction of a nuclear power plant in Rajasthan. This project is notable as it will be India's first nuclear power plant not entirely owned by the state-run NPCIL. Currently, all of India's 8.8 GW installed nuclear power capacity is fully owned and operated by NPCIL. The new JV aims to expand India's nuclear energy footprint by bringing in additional investment and expertise. This move signifies a strategic shift towards greater private sector involvement in the country's nuclear power generation, which has historically been a state monopoly under NPCIL.

NTPC-NPCIL JV Floats ₹28,000 Crore Tender for Nuclear Plant

The Employees' Provident Fund Organisation (EPFO) has credited an 8.25% interest rate to all 34 crore provident fund accounts on July 15. This move follows the Union Finance Ministry's approval of the recommendation made by the EPFO's Central Board of Trustees. A senior EPFO official confirmed that members will be able to view the credited interest when they access their passbooks for the financial year 2025-26. This annual interest credit is a significant event for millions of salaried employees in India, as it directly impacts their retirement savings. The EPFO manages the provident fund for organised sector employees, ensuring their financial security post-retirement. The interest rate is reviewed and set annually, reflecting economic conditions and the returns generated by EPFO's investments.

EPFO Credits 8.25% Interest to 34 Crore PF Accounts on July 15

Indian refiners and importers are now relying more on the United Arab Emirates' (UAE) Fujairah and Khor Fakkan ports. These ports are located along the Gulf of Oman, which is outside the traditional Strait of Hormuz shipping route. This strategic shift helps India to source energy supplies from the region while avoiding potential risks associated with the Strait of Hormuz. The Strait of Hormuz is a narrow waterway crucial for global oil shipments, but it has faced geopolitical tensions in the past. By using UAE ports like Fujairah and Khor Fakkan, India aims to ensure a more secure and uninterrupted flow of its energy imports. This move highlights India's efforts to diversify its energy supply routes and enhance its energy security.

India Uses UAE Ports to Bypass Strait of Hormuz Risks

The Union Cabinet recently approved a significant outlay of ₹1.27 lakh crore for the second phase of the India Semiconductor Mission (ISM 2.0). This decision aims to boost the country's semiconductor manufacturing capabilities. Union IT Minister Ashwini Vaishnaw announced that the mission will specifically incentivize suppliers of raw materials crucial for chip production. The India Semiconductor Mission was initially launched to attract large investments in semiconductor fabrication, display fabrication, and design. This new allocation under ISM 2.0 shows the government's continued commitment to making India a global hub for electronics manufacturing. The focus on raw material suppliers is a strategic move to build a robust and self-reliant supply chain within the country, reducing dependence on foreign sources for critical components.

Cabinet Approves ₹1.27 Trillion for Semiconductor Mission 2.0

India's net direct tax collections have increased by 16% so far in the financial year 2026-27 (FY27). This growth in direct tax collections strengthens the Central government's revenue position. Higher revenue gives the government more fiscal room. This means the Centre can pursue its budgeted spending plans more easily. The increase in direct tax collections indicates a healthy economic activity and improved tax compliance. Direct taxes include income tax and corporate tax, which are crucial for government funding. The robust direct tax collections are a positive sign for the Indian economy's recovery and growth trajectory. This trend helps the government manage its finances effectively and invest in various development projects as planned in the Union Budget.

Direct Tax Collections Rise 16% in FY27, Boost Centre's Revenue

India's wholesale price index (WPI) inflation climbed to 9.87% in June 2026. This marks a significant increase, primarily driven by higher prices of food articles and petroleum products. The WPI measures the average change in prices received by producers for their goods. The rise in wholesale inflation indicates that producers are facing higher input costs, which could eventually lead to higher retail prices for consumers. Food inflation, in particular, saw a sharp increase, impacting essential commodities. Fuel and power prices also contributed substantially to the overall inflation figure. This trend suggests potential challenges for economic stability and consumer purchasing power in the coming months. The government and the Reserve Bank of India (RBI) will closely monitor these inflation trends.

Wholesale Inflation Nears 9.87% in June: Food and Fuel Drive Rise

India's Consumer Price Index (CPI)-based retail inflation rose to 4.38% in June 2026. This is an increase from 3.93% recorded in May 2026. The primary reason for this surge is the rise in food prices. This marks the first time since January 2025 that retail inflation has breached the Reserve Bank of India's (RBI) medium-term target of 4%. It is also the first instance of breaching the target since the introduction of the new CPI series in January 2026. A patchy monsoon has added fresh risks, potentially impacting agricultural output and further pushing up food prices. The Reserve Bank of India closely monitors these inflation figures to guide its monetary policy decisions.

Retail Inflation Breaches RBI Target at 4.38% in June 2026

India's retail inflation rate accelerated to 4.38% in the latest reporting period. This increase has led to expectations that the Reserve Bank of India (RBI) might consider raising interest rates. The acceleration in retail inflation indicates rising prices for consumer goods and services across the country. This trend is closely watched by economists and policymakers as it impacts purchasing power and economic stability. The RBI's primary mandate includes maintaining price stability, and a sustained rise in inflation often prompts the central bank to take measures to control it. A rate hike by the RBI would make borrowing more expensive for banks, which in turn affects loans for businesses and individuals. This move aims to reduce the money supply in the economy and cool down inflationary pressures. The current inflation figure is above the RBI's comfort zone, which typically targets inflation within a specific range.

India's Retail Inflation Rises to 4.38%, Rate Hike Expected

India's retail inflation, measured by the Consumer Price Index (CPI), has surpassed the Reserve Bank of India's (RBI) upper tolerance limit of 6% after a period of 18 months. This increase indicates a significant shift in the country's economic landscape regarding price stability. The latest data shows that inflation has moved beyond the comfortable zone set by the RBI, which aims to keep inflation between 2% and 6%. This development could influence future monetary policy decisions by the RBI, potentially leading to a re-evaluation of interest rates. The rise in inflation is a key indicator for economists and policymakers, as sustained high inflation can erode purchasing power and impact economic growth. The RBI closely monitors these figures to manage the economy effectively.

India's Retail Inflation Exceeds RBI Target After 18 Months

India's merchandise exports increased by 15.5% to $40.4 billion in June 2024. However, imports grew at an even faster pace during the same period. This led to a widening of India's merchandise trade deficit to $30.4 billion, marking a five-month high. The surge in imports was primarily driven by a higher oil bill, influenced by global crude oil prices. For the entire June quarter of 2024, the merchandise trade deficit stood at $86.86 billion. This figure represents a notable increase compared to $68.75 billion recorded in the same quarter of the previous year. The expanding trade deficit highlights the impact of global economic factors, such as commodity prices and geopolitical events, on India's external trade balance.

India's Trade Deficit Hits 5-Month High in June 2024

The National Housing Bank (NHB) recently launched the 'Gruh Sugam' portal. This new online platform is designed to simplify and standardize the submission of off-site returns by Housing Finance Companies (HFCs). The Gruh Sugam portal will serve as a unified interface for HFCs to submit their regulatory data to the NHB. This move is part of NHB's broader strategy to leverage technology for better supervision and regulation of the housing finance sector. The portal is expected to improve data accuracy, reduce manual errors, and ensure timely reporting from HFCs. It will also help the NHB in conducting more effective analysis of the sector's performance and health. The Gruh Sugam portal is a significant step towards digital transformation in the housing finance regulatory framework, benefiting both HFCs and the NHB.

NHB Launches Gruh Sugam Portal for Housing Finance Companies

Economists predict that India's retail inflation, measured by the Consumer Price Index (CPI), will likely cross the Reserve Bank of India's (RBI) 4% target for June. This potential breach is primarily driven by a sharp increase in food prices, especially vegetables and pulses. The RBI aims to keep inflation within a band of 2% to 6%, with a medium-term target of 4%. If inflation consistently stays above this target, it could prompt the RBI to maintain a hawkish monetary policy stance, potentially delaying interest rate cuts. The monsoon's progress and its impact on agricultural output will be crucial in determining future inflation trends. The RBI closely monitors these indicators to make its policy decisions.

June Inflation May Exceed RBI's 4% Target

The National Pharmaceutical Pricing Authority (NPPA) has recently capped the retail prices of 39 drug formulations. This decision includes the clot-busting drug tenecteplase, manufactured by Boehringer Ingelheim. Tenecteplase is vital for treating acute ischemic stroke and myocardial infarction (heart attack). By capping prices, the NPPA aims to make these essential medicines more affordable and accessible to patients across India. This move is part of the government's ongoing efforts to regulate drug prices and ensure that life-saving medications are not prohibitively expensive. The NPPA regularly reviews and revises drug prices under the Drugs (Prices Control) Order to maintain affordability and availability of scheduled and non-scheduled formulations.

NPPA Caps Prices of Tenecteplase and 38 Other Drugs

The Indian Finance Ministry has scheduled a meeting with lenders for July 13. The main goal of this meeting is to review and enhance the mobilization of foreign currency. The government aims to boost the inflow of funds through several channels. These include Foreign Currency Non-Resident (Bank) deposits, which are deposits made by NRIs in foreign currencies. Another focus area is overseas foreign currency borrowings, where Indian entities borrow from international markets in foreign currencies. Additionally, the ministry will look into External Commercial Borrowings (ECBs), which are loans raised by eligible resident entities from recognized non-resident entities. This initiative by the Finance Ministry seeks to increase the availability of foreign exchange in the country, which can help stabilize the rupee and support economic growth.

Finance Ministry to Boost Foreign Currency Inflow on July 13

India plans to launch an Index of Services Production (ISP). This new index will provide high-frequency data on the performance of the services economy. The ISP is designed to complement the existing Index of Industrial Production (IIP), which tracks the manufacturing and mining sectors. By having a dedicated index for services, policymakers will gain a more comprehensive and timely understanding of economic activity. This improved data will enable better economic forecasting and more informed policy decisions. The services sector is a significant contributor to India's Gross Domestic Product (GDP), making its accurate and timely measurement essential for economic management. The introduction of the Index of Services Production reflects a move towards more sophisticated economic data collection in India.

India to Launch Services Production Index for Better Policy

India's Directorate General of Foreign Trade (DGFT) recently issued new regulations to simplify the import of specific categories of cars from the United Kingdom. These rules are part of the ongoing efforts to strengthen trade ties between India and the UK. Under the new guidelines, certain vehicles, particularly those used for testing and research and development (R&D) purposes, will benefit from reduced import duties. This initiative is expected to lower the cost of bringing advanced automotive technology into India. The move is also seen as a step towards facilitating a potential Free Trade Agreement (FTA) between the two nations. The DGFT's notification specifies the conditions and procedures for these imports, ensuring that only eligible vehicles receive the benefits. This policy aims to encourage innovation in India's automotive sector by allowing easier access to cutting-edge UK-made vehicles.

India Eases UK Car Imports: New Rules for Cheaper Vehicles

Oil and Natural Gas Corporation (ONGC) has announced its plan to develop strategic petroleum reserves (SPR) in Mangaluru, Karnataka. This initiative is part of India's broader strategy to enhance its energy security by creating a buffer against global oil price volatility and supply disruptions. ONGC will be responsible for the construction and management of these underground crude oil storage facilities. The project is crucial for India, which imports over 85% of its crude oil needs. Developing these reserves will ensure a stable supply of crude oil for the country's refineries during emergencies. The Mangaluru site is strategically important due to its proximity to major refineries and ports. This development by ONGC aligns with the government's vision to increase India's strategic oil storage capacity.

ONGC to Develop Strategic Petroleum Reserves in Mangaluru

The Asian Development Bank (ADB) recently revised India's economic growth forecast for the fiscal year 2026-27 (FY27). The multilateral lender trimmed its Gross Domestic Product (GDP) outlook for India to 6.6%. This is a reduction from its earlier projection of 6.9% for the same period. The primary reason cited by the ADB for this downward revision is the prolonged disruptions in global energy markets. These disruptions are a direct consequence of the ongoing conflict in West Asia. Despite the adjustment for FY27, the ADB maintained its growth forecast for India for the fiscal year 2027-28 (FY28) without any changes. The ADB's assessment highlights the impact of external geopolitical events on India's economic prospects, particularly through the energy sector.

Economy

NTPC-NPCIL JV Floats 28,000 Crore Tender for Nuclear Plant