PROVISIONAL ESTIMATES OF WHOLESALE PRICE INDEX, OUTPUT PRODUCER PRICE INDEX, AND TRIAL INPUT PRODUCER PRICE INDEX FOR THE MONTH OF JULY 2026, AND FINA...
The cumulative exports (merchandise & services) during April-July 2026-27 is estimated at US$ 316.42 Billion, as compared to US$ 279.63 Billion in Apr...
Current account deficit widened as merchandise trade imbalance expanded, despite stronger services surplus, transfers, and positive capital inflows. India's current account deficit widened in June 2026, principally because merchandise imports increased faster than exports and expanded the merchandise trade deficit. A higher services surplus, increased net transfers and a narrower net income deficit provided partial offsets. Net capital inflows, including foreign direct investment and foreign portfolio investment, supported a positive overall monthly balance. During the April-June quarter, despite increased services surplus and net transfers, the overall balance shifted to a deficit as the merchandise trade deficit widened.
Concessional foreign-currency swap facility closes early for new FCNR(B) deposits while ECB and OFCB access remains available. The concessional swap facility for FCNR(B) deposits encourages foreign-currency inflows and supports foreign-exchange liquidity. New FCNR(B) deposits eligible for the facility must be mobilised by 31 August 2026, while swaps for eligible deposits may be availed until 11 September 2026. The swap arrangement for External Commercial Borrowings and Overseas Foreign Currency Borrowings remains available until 31 December 2026.
Insurance grievance redressal requires initial insurer complaint, prompt acknowledgement, and escalation through integrated monitoring channels when resolution remains unsatisfactory. Insurance policyholder grievances must first be raised with the concerned insurer, whose Grievance Redressal Officer and Board-level monitoring committee oversee redressal. Complaints received through digital channels, correspondence or call centres are recorded in the insurer's Complaints Management System, integrated with Bima Bharosa. Insurers must acknowledge complaints immediately and resolve them within 14 days. Where no response is received within a reasonable period or the response is unsatisfactory, policyholders may escalate through Bima Bharosa or designated helplines, email or physical correspondence.
Foreign exchange reserve growth reflects increases in foreign currency assets, gold holdings, special drawing rights, and IMF reserve position. India's foreign exchange reserves rose to USD 707.002 billion for the week ended 7 August 2026. The increase comprised higher foreign currency assets, gold reserves, special drawing rights and the reserve position with the IMF. Foreign currency asset valuation incorporates appreciation or depreciation of non-US currencies held in reserve assets. Measures including the FCNR(B) scheme were introduced to attract additional foreign exchange inflows.
Wholesale and producer price indices show July inflation movements, provisional estimates, final revisions, and manufacturing input-price trends. Wholesale Price Index, Output Producer Price Index, and trial Input Producer Price Index estimates under the 2022-23 base-year series set out provisional July 2026 measures and final May 2026 revisions. All-commodities WPI stood at 110.0 in July 2026, with year-on-year inflation of 9.78 per cent. The all-commodities Output PPI was unchanged at 109.9, while the trial Input PPI for manufacturing was provisionally estimated at 105.9. Final May WPI, Output PPI and trial Input PPI measures were revised from their respective provisional estimates.
Logistics data visibility enables EXIM container tracking, operational analytics and multimodal shipment monitoring across India's logistics chain. Logistics Data Bank provides near real-time visibility of India's EXIM container movement through technology-based tracking and stakeholder monitoring tools. RFID-based coverage extends across ports, terminals, inland logistics facilities, rail networks, industrial zones, borders and highways. The platform uses RFID, Internet of Things, Big Data and Cloud technologies, with analytics on dwell time, transit time, and port and terminal performance to identify logistics bottlenecks. LDB 2.0 adds high-seas tracking of export containers and multimodal shipment visibility.
International organic buyer-seller linkages support Tripura producers through direct sourcing engagement, market access and sustainable export opportunities. International Organic Buyer-Seller Meet in Tripura created a direct platform for organic producers, Farmer Producer Organisations, exporters and international buyers to explore sourcing opportunities, market requirements and long-term commercial linkages. Organic and naturally produced goods, including Queen Pineapple, GI-tagged Kalikhasa Rice, organic ginger and turmeric, black sesame, jackfruit and scented lemon, were showcased through product displays and producer interactions. The initiative seeks to strengthen global market access, sourcing partnerships and income opportunities for organic farmers.
Wholesale price inflation moderation was driven by softer fuel prices, while manufactured goods and primary articles recorded higher inflation. Wholesale price inflation moderated in July, led by a decline in fuel and power inflation and a marginal easing in food-article inflation. Inflation in manufactured products and primary articles increased, making the moderation uneven across groups. Mineral oils, food articles, basic metals, non-food articles, food products, and chemical products remained significant inflation drivers. The output Producer Price Index remained unchanged year-on-year, with lower manufacturing and mining inflation offset by higher agriculture and electricity producer-price inflation.
International investment-grade issuer ratings support expanded foreign-currency funding, trade finance, correspondent banking and cross-border financial market access. IDFC FIRST Bank's inaugural international investment-grade issuer credit ratings, with a stable outlook, are expected to improve access to international funding markets and global financial counterparties. The rating is intended to support standby letter of credit lines, foreign-currency funding through its GIFT City International Banking Unit, mobilisation of FCNR(B) deposits, correspondent banking relationships and cross-border trade finance. Strong capitalisation, improving profitability, stable asset quality and a granular retail funding profile underpin the outlook.
Clandestine psychotropic drug manufacturing faces enforcement targeting precursor chemicals, concealed laboratories, illicit production networks and trafficking operations. Enforcement action against clandestine manufacture of psychotropic substances led to the detection of a residential drug-production facility. Searches recovered amphetamine and intermediary forms, precursor chemicals, reagents, raw materials, and manufacturing equipment. Field testing indicated the presence of amphetamine, a psychotropic substance regulated under the Narcotic Drugs and Psychotropic Substances Act, 1985. The recovered apparatus and materials indicated illicit manufacture, while preliminary investigation pointed to short-term, intermittently operated facilities intended to conceal production activities.
International banking unit expands cross-border financing, trade finance and foreign-currency service access through GIFT City operations. UCO Bank has launched an International Financial Services Centre Banking Unit at GIFT City to provide permitted international banking services. The unit offers trade finance, external commercial borrowings, foreign-currency loans, loan syndication, treasury services and other permitted financial services. It serves Indian corporates, exporters, importers, financial institutions, overseas businesses and other eligible customers requiring cross-border financing and access to global financial markets. FCNR(B) deposits are also offered through the unit.
Last-mile credit access is prioritised through timely lending, wider beneficiary coverage, digital support and stronger fraud vigilance. Banking-sector participation is emphasised through last-mile credit access for MSMEs, women entrepreneurs, rural artisans, small farmers and other underserved beneficiaries. Banks are urged to expedite government-scheme applications, maximise coverage and use technology for timely financial support. Industrial-policy assistance and incentives cover startups, SC/ST entrepreneurs, persons with disabilities and first-generation entrepreneurs. Greater coordination, expanded village banking access, and vigilance against cyber fraud and mule accounts are also prioritised.
Merchandise trade growth saw rising exports to major markets alongside increased imports and continuing United States trade-pact negotiations. India's merchandise trade data records increased July exports to the United States and China, alongside growth in imports from both markets. Exports to Singapore, the United Arab Emirates, the Netherlands, Germany, South Africa, Tanzania, Australia, Malaysia, Sri Lanka, Italy and Vietnam showed positive growth, while July exports declined for the United Kingdom, Bangladesh, Saudi Arabia and Nepal. Imports also increased from Russia, Korea, Singapore, Germany, Oman, Malaysia, Taiwan and Brazil. India and the United States are negotiating a trade pact amid an additional United States tariff on India.
GST transport documentation enforcement addresses freight movement of metals without valid e-way bills and invoices under applicable rules. GST enforcement action led to the seizure of copper and aluminium ingots transported by freight train without valid e-way bills and invoices. The metals were found in three train wagons during inspection of parcel cargo. Further proceedings are to be undertaken under applicable GST rules concerning movement of goods without prescribed transport documentation.
Merchandise trade deficit widens as import growth outpaces exports despite strong petroleum, electronics and engineering shipments. Merchandise trade in July 2026 saw exports rise 19.63 per cent and imports increase 17.52 per cent, widening the trade deficit to a six-month high. Petroleum products, electronics, engineering goods and marine goods supported export growth, while crude oil and several commodity and capital-goods categories increased imports. During April-July 2026-27, faster import growth widened the cumulative merchandise trade deficit compared with the corresponding prior-year period.
Bribery allegations in GST enforcement prompted arrest after alleged payment demand to avoid a tax-liability notice. Bribery allegations involving GST enforcement led to the arrest of a CGST Superintendent after a complaint alleged that payment was demanded from a private company to avoid issuance of a tax-liability demand notice and to close the matter. A trap operation resulted in the public servant being apprehended while allegedly accepting part of the demanded bribe, and the amount accepted was recovered. Searches were undertaken, and investigation remained ongoing.
Trade performance shows rising merchandise and services exports, but faster import growth expands the overall trade deficit. India's combined merchandise and services exports and imports increased in July 2026 and April-July 2026-27, while the overall trade deficit widened. Cumulative exports were estimated at US$ 316.42 billion and imports at US$ 365.85 billion, resulting in a trade deficit of US$ 49.43 billion. Merchandise exports, non-petroleum exports, and exports excluding petroleum and gems and jewellery grew, led by petroleum products, electronic goods, engineering goods and chemicals. Services trade recorded a cumulative surplus of US$ 69.17 billion.
Student GIC referral programmes integrate connectivity credits with funding verification and post-arrival banking arrangements for eligible international students. Referral arrangements connect mobile connectivity benefits with the Student Guaranteed Investment Certificate application journey. Applicants may access an online portal through a referral link, submit documents, complete know-your-customer verification, and fund the GIC from permitted Indian bank accounts in no more than two transactions. After arrival, students may activate the GIC account and open a linked bank account for receipt of GIC transfers. Eligible verified applicants receive non-cash mobile credits usable only against mobile bills, subject to a cap on the bill portion payable through credits.
Global Capability Centre banking support connects offshore and onshore operations to simplify financial management and enable cross-border expansion. Global Capability Centre banking support is positioned around connected offshore and onshore banking, international network access, digital banking platforms, and expertise in treasury centres, cross-border corporates, and evolving GCC operating models. The approach seeks to simplify financial operations and support GCC expansion across global markets. India's GCC ecosystem is characterised as a leading global capability hub, with capability centres evolving into strategic enterprise hubs requiring support for operational and financial complexities across markets.
Investment banking registration enables regulated cross-border offerings, listings, debt transactions and capital-market advisory through GIFT City. IFSCA registration under the IFSCA (Capital Market Intermediaries) Regulations, 2025 authorises Nexent Capital IFSC Private Limited to operate as an investment banker from GIFT City. Permitted activities include management of initial and follow-on public offerings, SPAC and secondary listings, depository receipt issuances, debt capital-market transactions, and other capital-market advisory mandates. The firm proposes to provide transaction structuring, listing-readiness, execution and post-listing capital-markets support for companies seeking capital raising and listing opportunities through GIFT City's exchanges.
Following is the text of the Valedictory address of Shri S.S. Palanimanickam, Minister of State for Finance delivered at the 26th Annual Conference of Chief Commissioners and Directors General of Income Tax, here today:
"It is my pleasure to give the valedictory address before this distinguished gathering of the senior officers of the Income Tax department. I entered this office as Minister of State of Finance- Revenue, in 2004 and since then, there has been an exponential growth in its revenues - from Rs.1.05 lakh crore in March 2004 to Rs. 3.78 lakh crore in March, 2010. This is a result not only of economic buoyancy, but also a stellar example of the positive effect of tax payer friendly initiatives undertaken by CBDT. The Hon'ble Finance Minister has already congratulated the excellent performance of the department and its officers, but I too have to laud the efforts of the officers and employees of this department for its outstanding achievement.
At the outset, I would like to thank the Hon'ble Finance Minister for his active participation in various initiatives of the department. He inaugurated the Advance Training Complex at NADT, Nagpur on 8th May, 2010 to augment training and international programmes. He also launched the e-tutorial on TDS prepared by the IRS probationers. He chaired the second meeting of the Central Direct Tax Advisory Committee (CDTAC) on 18th May, 2010. The Hon'ble Finance Minister dedicated to the Nation the Centralized Processing Centre set up in Bengaluru on 29th May 2010. In his key note address yesterday, the Finance Minister emphasized the need to tone up the tax administration by adopting IT initiatives and improving professional competence and responsiveness of the officers. He also suggested accepting the PPP mode to improve the services delivery standards. I am hopeful that these suggestions have been given due consideration by this august group, and comprehensive proposals will be submitted in due course to take these suggestions to the next higher level. It is our good fortune to have such a senior and experienced Minister to guide us in our task of building an efficient tax administration.
The Annual Conference of Chief Commissioners and Directors General provide an opportunity to the officers to take stock of Department's achievements and review the work in progress. I would like to commend the Department on some of its achievements in the last year. The innovative project of the Income Tax Department Integrated Taxpayer Data Management System (ITDMS) was awarded PM's Award of Excellence for the year 2008-09. This is a comprehensive tool to develop focused intelligence and detect tax evasion in a non-intrusive manner. To this end, it is laudable that the Income Tax Service Centre has obtained IS 15700:2005 certification from the Bureau of Indian Standards. I am glad that the Department has not only brought out a compilation of Best Practices and Orders in the form of a book titled "Let Us Share", but have kept it updated by bringing out its 3rd Volume. The drafting of the new Direct Taxes Code is a major policy initiative of the department, which will go a long way in ushering in a more transparent and simplified direct tax administration, and would be in tune with the new demands and challenges that the growing forces of globalization throw up.
While I am happy at the progress made by CBDT in the various fronts, more needs to be done. There is a need to attain higher levels of professionalism and motivation amongst the officers of CBDT and to improve service delivery standards to the tax payers. In my valedictory address in the last year's conference, I had flagged certain important issues. I am glad that certain clauses of transfer policy which were perceived to be causing hardship to the officers have been amended. However, I feel that this is only the beginning of the process. More issues need to be addressed to improve the morale and the satisfaction level of the officers and staff. It is important to satisfy the professional aspirations of officers in a timely manner through efficient cadre management, cadre planning, and imparting the right skills. In this context, I would like to draw your attention to the Hon'ble FM's keynote address yesterday wherein he had laid emphasis on taking up cadre restructuring proposal which has been delayed. I hope this is taken up in right earnestness by the Board.
As the Department's contribution to the Central exchequer grows, its manpower, resources and infrastructure also have to grow in tandem. The Department has to create quality infrastructure for its officers and staff as well as for the use of assessees. It is not always efficient and timely to control this process centrally. The field formations need to be given greater financial powers and autonomy in order to impart greater momentum to the process of infrastructure building. I urge the department to actively work on a proposal to enhance delegation of financial powers to its field formations. To ensure better coordination of expenditure on human and material resources, the department should consider setting up a dedicated Directorate of Finance. There is an urgent need to tone up the Vigilance Machinery of the department. It is imperative that the department fixes a time frame to decide vigilance related cases. Such a time frame should be practical taking into consideration the various nuances of the case. The corrupt should be punished, but the department's reaction should be prompt. You have to realize that keeping officers in the Agreed list also deprives the department of officers to man sensitive charges. It is therefore in the interest of the department and the officers that vigilance matters are resolved within a fixed time frame.
I would also like to bring to your attention the delay in compiling the monthly revenue figures within the first week of the following month. I would like to be apprised of the bottlenecks, if any in timely collection of the revenue collection figures. I am positive that problems, if any, can be sorted out in this regard.
While tax collection is the core responsibility of the Department, it is important to remember that there is more to modern tax administration than mere revenue collection. The administration needs to be transparent, simple, and efficient. The officers and staff need to go beyond their traditional role of tax collector, and should acquire a more holistic approach where efficiency of services to tax payers, transparency and fair play are given their due importance. At the same time, they also need to focus on devising tools to prevent tax evasion, rather than to unearth evasion that has already taken place. All this requires a focused approach to qualitative improvement of the human resources through regular training and interaction with the senior officers. In this regard, I am happy to note that zonal/regional level conferences have been started, as a precursor to such an annual conference. This will certainly aid in identifying issues which are peculiar, sensitive and relevant for that region and which can be tackled more effectively by such interaction. A connected issue that the department needs to dwell upon is how to improve and update the knowledge base of its most important stakeholders i.e. Auditors, Chartered Accountants etc. An approach of partnership in this area can pay rich dividends.
The Board is very fortunate to be led at this time by a Finance Minister who is willing to give utmost freedom to the Department in augmenting its resources and improving its infrastructure. This is the right time to capitalize on this opportunity because the pressures of revenue collection, meeting the revenue target and budget preparations start building up only from December onwards. Therefore, the Board should use this lean period to work on proposals for creation of infrastructure, cadre restructuring, capacity building etc.
The Department's efficiency has to be bench marked by the satisfaction level of the users. A major source of dissatisfaction of income tax assesses is with respect to refund of taxes. The time taken to grant refunds is very high when compared to international standards. The department should set up a task force to revamp the system of tax refunds so as to progressively reduce the time taken for refunds from the present period of more than four months, to a maximum of sixty days. Similarly, I have received feedback that the taxpayers are facing difficulties in getting credit of the TDS paid by them. There is a need to review and revamp the existing TDS administration in order to iron out these irritants. It is important that taxpayers receive uniform treatment of their cases in any part of the country. In order to ensure uniformity of approach and transparency in its functioning, the department should put in place a mechanism to disseminate information on all such important orders, judgments to all field formations.
I note that several of these issues have been deliberated during the Conference and I hope that concrete suggestions and action plans have been drawn up for follow-up action.
In the year ahead, we have a tough task before us. We have to achieve a budget collection target of Rs.4.30 lakh crore. The FM in his speech yesterday had implied and hoped that the direct tax collection will exceed its Budget Estimates. However, I shall be direct and urge all of you to take all necessary steps for not only realizing, but exceeding the B.E. Exceeding our collection targets will be a form of thanksgiving to the FM for the benevolence and encouragement shown towards this Department. "
Tax administration reform urged to modernize systems and expedite refunds while improving cadre management and service delivery.
The address calls for strengthening tax administration by modernizing IT systems, expanding training and infrastructure, pursuing cadre restructuring and delegation of financial powers to field formations, and instituting a Directorate of Finance; it urges timely resolution of vigilance cases, prompt monthly revenue reporting, and operational reforms to expedite refunds and overhaul TDS administration to ensure uniform, taxpayer-friendly service.
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