Economy News ( English version)

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  • India should increase investment in R&D to 2 per cent of GDP: Niti Aayog May 18, 2026
    Niti Aayog has urged India to boost research and development investment to two percent of GDP within five years. The report suggests restoring a five percent GST slab for R&D procurement. It also calls for fiscal incentives to encourage private sector R&D spending. Strengthening CSR provisions and tax deductions for R&D donations are also recomme […]
  • RBI discontinues investment fluctuation reserve requirement for banks May 18, 2026
    The Reserve Bank of India has discontinued the Investment Fluctuation Reserve for commercial banks. This change takes effect from May 18, 2026. Balances in the IFR will be transferred to other reserves. The Reserve Bank has issued separate circulars for cooperative banks, small finance banks, and payments banks. This move aligns with updated prudential frame […]
  • Not activating countercyclical capital buffer, says RBI May 18, 2026
    The Reserve Bank of India has decided not to activate the countercyclical capital buffer. This measure is not needed at this time. The buffer is designed to build capital in good times for use during difficult periods. It also aims to curb excessive lending. The framework was introduced after the 2008 global financial crisis.
  • Current account deficit to widen to 2.3 per cent of GDP in FY27 from 0.9 pc in FY26: Report May 18, 2026
    India's current account deficit is expected to rise to 2.3 percent of GDP in FY27 from 0.9 percent in FY26. This widening deficit could strain foreign exchange reserves. Experts suggest policy changes like increasing fuel prices and operationalizing trade deals to boost inflows. Attracting sustainable capital is crucial for India's economic stabili […]
  • India's fertiliser subsidy bill for FY27 may rise by Rs 70,000 cr on West Asia crisis, official says May 18, 2026
    India's fertiliser subsidy bill could rise by Rs 70,000 crore to Rs 2.41 lakh crore in 2026-27. This increase is driven by higher import costs for urea and other fertilisers due to the West Asia crisis. Despite cost pressures, fertiliser availability for the 2026 kharif season remains comfortable. Diversified import sourcing is bridging any supply gaps. […]

 

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