CURRENT AFFAIRS

India has committed to importing goods worth $100 billion annually from the United States for five years as part of a broader trade understanding that also involves significant tariff reductions by the U.S. The move comes after a phase of escalating trade tensions, particularly the U.S. decision in August 2025 to raise tariffs on Indian goods to 50%, and marks a major recalibration of bilateral economic relations.

In the Union Budget 2026–27, the Union Minister for Finance announced the launch of the Biopharma SHAKTI initiative to strengthen India’s position in the global biopharmaceutical value chain and expand domestic capabilities in advanced therapies.

The Union Budget 2026–27 has proposed a complete exemption from Basic Customs Duty (BCD) on 17 cancer-related drugs and medicines, providing immediate financial relief to patients suffering from cancer and rare diseases and signalling a policy shift towards healthcare affordability.

The Finance Minister has proposed a sharp increase—by up to 150%—in the Securities Transaction Tax (STT) on both futures and options (F&O) trading. This move is aimed at curbing excessive speculation, improving market stability, and boosting government revenues from capital market activity.

The Union Budget 2026 has reduced central allocations for urban development by 11.6%, triggering debate over the government’s commitment to India’s cities at a time of rapid urbanisation, infrastructure stress, and climate vulnerability.

As the Finance Minister prepares to present her ninth consecutive Union Budget, India’s fiscal framework is set for a structural shift. From FY 2026–27, the Centre will transition its fiscal consolidation anchor from the annual fiscal deficit to the debt-to-GDP ratio, aligning India’s fiscal strategy with global best practices.

Assam Petrochemicals Limited (APL) signed a Memorandum of Understanding (MoU) with the Deendayal Port Authority (DPA) to establish a 150-tonne-per-day (TPD) e-methanol plant at Kandla Port in Gujarat, marking a significant step towards India's transition to clean energy and green transformation.

According to documents released by the Ministry of Statistics and Programme Implementation (MoSPI), India’s revised Consumer Price Index (CPI) series with 2024 as the base year will significantly reduce the weight of food and beverages from 45.86% to 36.75%.

The Union Budget for 2026–27, to be presented by Finance Minister Nirmala Sitharaman, will outline: The government’s growth expectations and spending priorities,Projected revenues from tax and non-tax sources, andThe level of borrowing (fiscal deficit) required to bridge the gap between income and expenditure.

As the Union Budget 2026–27 approaches, policy focus is shifting away from short-term consumer relief measures towards other growth drivers. This makes it timely to assess whether household consumption—despite income tax cuts and GST rationalisation—has genuinely strengthened, or whether underlying wage and income weaknesses continue to constrain demand.