Monetary policy rate setting remains cautious as inflation, liquidity, growth and global uncertainty shape the policy stance. Monetary policy rate setting is expected to remain cautious amid global uncertainty, rising inflation risks and steady domestic growth. The inflation outlook is affected by energy-price pass-through, higher input costs, and seasonal and monsoon-related food-price pressures. Policy decisions are expected to remain data-dependent, guided primarily by domestic inflation, liquidity conditions and economic growth. A cautious or neutral stance is identified as preferable while external risks and inflation developments persist.
Forward-looking financial disclosure raises revenue and earnings guidance while describing non-GAAP measures, capital allocation, and material business risks. Financial performance reporting identifies increased bookings, revenue growth, continuing earnings, and backlog, with segment-level operating and margin measures. The release addresses cash flow, capital allocation through dividends, acquisitions and share repurchases, and increased full-year revenue and earnings guidance. Forward-looking statements concerning financial performance, operations, demand, liquidity and capital deployment are subject to identified risks and uncertainties. Non-GAAP measures are presented as supplemental to GAAP measures, with definitions and reconciliations stated to be available in accompanying materials.
Counterfeit drug enforcement targets illicit manufacture, storage and trafficking networks, with coordinated seizures and referral of non-narcotic stock. Counterfeit-drug enforcement under Operation Vajra addressed an inter-state network involved in the illicit manufacture, storage and distribution of narcotic drugs, psychotropic substances and spurious pharmaceutical products. Searches of unregistered godowns recovered narcotic products, unauthorisedly manufactured Buprenorphine injection ampoules, and counterfeit non-NDPS medicines. A farmhouse-based illicit manufacturing facility was dismantled, with machinery, chemicals and related materials seized under the NDPS Act, 1985.
Anti-smuggling enforcement targets concealed gold, narcotics, protected products, prohibited e-cigarettes and restricted imports through coordinated intelligence operations. Intelligence-led anti-smuggling operations resulted in seizures of foreign-origin gold, narcotic drugs, hydroponic weed, protected wildlife and forest products, prohibited electronic cigarettes, and restricted poppy seeds and areca nuts. The operations identified concealment through fabricated baggage cavities, false cargo declarations, misdeclaration of origin, forged documentation, and concealment in transport vehicles. Poppy seeds are restricted under the Foreign Trade Policy and may be imported only subject to conditions concerning legally cultivated produce from designated countries and registration of import contracts with the Narcotics Commissioner.
Tax devolution advance instalment strengthens State finances for accelerated capital and developmental expenditure through distribution of Union tax proceeds. Tax devolution was released to State Governments as an additional advance instalment alongside the normal monthly devolution schedule. The fiscal transfer shares net proceeds of Union taxes and duties with States, with the stated purpose of strengthening State finances and supporting accelerated capital and developmental expenditure. The release includes a State-wise distribution of tax-devolution proceeds.
Financial performance reporting highlights revenue and EBITDA growth, garmenting recovery, retail optimisation, ESG commitments, and forward-looking risk disclosures. Financial performance reflects growth in total income and EBITDA, with improved margin, reduced net working-capital days, and a net-cash position. Branded textiles and high-value cotton shirting reported lower revenue due to the prior-year base effect, while branded apparel grew but faced lower margin from channel mix. Garmenting improved through order-book execution, tariff rationalisation, and new global clients. ESG priorities include female representation, waste-management initiatives, renewable energy, emissions reduction, and workplace safety. Forward-looking statements remain subject to regulatory, political, economic, and technological risks.
Foreign exchange market support strengthens the rupee as lower crude prices, portfolio inflows and reserve growth improve sentiment. Foreign exchange market conditions supported an early appreciation of the rupee against the US dollar, attributed to lower global crude oil prices, a weaker dollar, sustained foreign portfolio inflows, higher foreign exchange reserves, and Reserve Bank of India presence in the foreign exchange market. Domestic equity market gains and net foreign institutional equity purchases were also identified as supporting factors.
Gold smuggling detection targets sophisticated concealment methods through strengthened passenger profiling, intelligence gathering and coordinated investigations into organised networks. Gold smuggling detection at Kerala airports led to multiple seizures, registration of cases and arrests in alleged smuggling attempts. Organised networks reportedly use gold in paste or compound forms concealed in clothing, body cavities, aircraft seats and other unconventional locations. Enforcement measures include strengthened passenger profiling, intelligence gathering and inter-agency coordination, while investigations continue to identify associated syndicates and financiers.
Offshore exploration funding supports deepwater drilling, shared infrastructure and seismic data to strengthen domestic hydrocarbon production potential. The Samudra Manthan National Offshore Exploration Scheme provides direct budgetary support for high-risk deepwater and ultra-deepwater exploratory drilling, subject to cost-sharing and per-well limits. Support is available to eligible operators holding or securing exploration acreage. The scheme also funds offshore data acquisition and shared subsea, receipt and processing infrastructure through a Common Hub Infrastructure model. It is intended to promote risk exploration, improve commercialisation of offshore discoveries and strengthen domestic hydrocarbon production potential within the existing exploration and licensing framework.
GST compliance enforcement combines taxpayer refunds, analytics-based fraud detection, cancellation of fake registrations, and recovery of outstanding VAT arrears. Punjab attributed increased GST collections to voluntary compliance, intelligence-based enforcement and technology-driven tax administration, while facilitating compliant taxpayers through timely GST refunds. Data analytics, risk profiling and field verification were used to identify tax evasion, bogus billing, fake input tax credit networks and misuse of the GST registration framework. Measures included penalties, cancellation of fraudulent registrations and recovery of long-pending VAT arrears through attachment and auction of defaulters' properties.
Cross-border barter trade resumes through Shipki La, subject to permitted goods, time limits, and import-export compliance requirements. Cross-border barter trade through Shipki La between India and Tibet resumed after a six-year interruption. Traders may exchange specified goods under a barter arrangement and must return within 72 hours. Traders are required to comply strictly with import-export regulations prescribed by the Union Ministry of Commerce, emphasising transparency and regulatory compliance. Expansion of permitted goods may be pursued through prescribed governmental and external-affairs channels.
Export growth projections outline pathways for Odisha to expand merchandise trade through export diversification, MSME support and financing initiatives. Export growth projections for Odisha set out base, optimistic and ambitious scenarios through FY 2029-30, based respectively on historical growth, envisaged national export growth, and a larger share of national exports. Odisha's export basket remains concentrated in metals and minerals, led by aluminium products, with China as the principal export destination. Odisha Vision 2047 identifies exports, including MSME contributions, as an economic transformation driver, while export-financing and risk-mitigation initiatives aim to address financing gaps for exporters and MSMEs.
GST compliance enforcement through AI analytics supported sustained net GST collection growth despite rate rationalisation reforms and reduced compliance costs. GST revenue mobilisation in Andhra Pradesh showed year-on-year growth in net GST and total commercial tax collections through July 2026, despite rate-rationalisation reforms. Revenue growth was attributed to AI-based scrutiny and analytics, machine-learning risk scoring, AI-driven IGST reversals, UPI-based enforcement analytics, data sharing, predictive analytics, registration verification, and Aadhaar-integrated expansion of the professional-tax base. These measures were stated to strengthen compliance, curb wrongful input tax credit claims, broaden taxpayer coverage, and improve revenue mobilisation.
Economic-offences fraud chargesheets address alleged fictitious loans, forged insurance surrender papers, and diversion of bank and policy funds. Economic-offences chargesheets were filed in separate alleged bank and insurance fraud matters. The bank investigation alleged fictitious loan sanctions and overdrafts beyond delegated authority, involving cheating, forgery, use of forged documents and criminal conspiracy. The insurance investigation alleged that duplicate policy records and forged surrender documents were used to open a fraudulent account in a policyholder's name and divert policy proceeds. Records, witness statements, documentary evidence and forensic examination were cited in support of the allegations.
PM Vishwakarma Scheme implementation expands artisan enrolment, skills, credit, e-commerce access and export facilitation while addressing documentation barriers. PM Vishwakarma Scheme implementation in Delhi facilitated artisan enrolment, application processing, skill training, toolkit distribution, loan access, e-commerce onboarding and export-related support. Awareness workshops and tele-calling campaigns were used to promote participation and follow up on benefits. Key implementation challenges concerned outreach to informal clusters, digital literacy, delays in Aadhaar and IEC documentation, and additional support for Divyang artisans. Planned action includes expanding workshops, scaling e-commerce onboarding, strengthening export facilitation and coordination with implementing agencies.
Goods and Services Tax collections rise on domestic consumption and imports, while elevated import revenue prompts assessment of underlying drivers. Goods and Services Tax collections for July increased over the corresponding prior-year period, supported by domestic sales and imports. Gross receipts included Central GST, State GST and Integrated GST, with net GST revenue calculated after adjusting refunds. For the April-July period, gross and net collections also increased. Commentary linked domestic GST growth to consumption, formalisation and industrial activity, while identifying elevated import GST collections as an area requiring assessment of import composition, currency effects and volumes.
GST revenue collections show provisional gross, refund and net revenue trends, with State-wise settlement and domestic collection data. GST revenue collections for July 2026 are reported provisionally through gross domestic and import revenue, domestic and export-related refunds, and net GST revenue after refunds. The data also sets out SGST collections and the SGST share of IGST settled to States and Union Territories, both monthly and cumulatively. State-wise domestic GST growth excludes GST on imported goods, while jurisdiction-wise data allocates collections between central and State formations and identifies CGST, SGST and IGST components.
Bilateral trade cooperation expands through a Joint Trade Committee covering investment, critical minerals, healthcare, digital technologies and market access. Bilateral trade and investment cooperation between India and Rwanda is to be advanced through a structured Joint Trade Committee mechanism for reviewing commerce, diversifying trade, promoting investment, facilitating business engagement and addressing market-access and logistical issues. Priority cooperation includes critical minerals, pharmaceuticals and healthcare, agriculture and agro-processing, standards harmonisation, digital public infrastructure, fintech, cybersecurity, green mobility and renewable energy. Investment focal points will support engagement, while capacity-building assistance and close monitoring of the Agreed Minutes are intended to support time-bound implementation.
GST collection growth in West Bengal continued year-on-year in July but remained below the national growth trend. West Bengal's July GST collection increased year-on-year and over the preceding month, marking a second consecutive month of annual growth. Official data also indicated that the State's annual growth rate was below the national trend, while gross domestic GST revenue excluding imports and overall gross GST collections including import-related taxes rose nationally during July.
GST collection growth reflects higher revenue mobilisation from domestic transactions and imports, with refunds adjusted in net revenue. Goods and Services Tax collections increased in July, driven by higher revenue from domestic transactions and imports. The gross collection comprised Central GST, State GST and Integrated GST components. Refunds also increased during the month, and net GST revenue was determined after adjustment of refund outflows from gross tax receipts.
The Union Finance Minister, Shri Pranab Mukherjee has said that the resilience shown by Indian economy during the global crisis reflects a maturing of the economic management of the country and the growing competitiveness of our enterprise. The overall GDP growth of 8.9 per cent in the first half of 2010-11 takes us back on a high growth path that the economy was traversing on in the years prior to the crisis, however, concern on inflation remains, he said. Mentioning that India's growth momentum, to some extent, is affected by the developments in the Western World, he said that a faster recovery in the West will benefit all. Shri Mukherjee was speaking at the inaugural session of Second International Finance Conference, organized by IIM Calcutta in Kolkata today.
Referring to FSDC, set up by the Government to strengthen and institutionalize the mechanism for maintaining financial stability, Shri Mukherjee said that the Government will also set up a Financial Sector Legislative Reforms Commission (FSLRC) to rewrite and clean up the financial sector laws and bring them in line with the requirements of the sector. He said that Government has accorded high importance to financial inclusion as it is a key determinant of sustainable and inclusive growth. The Government is committed to provide access to affordable financial services, especially credit and insurance to empower the poor and to enable the unbanked to become vibrant and productive participants in the process of economic growth, he said.
Highlighting India's compliance with most of the internationally accepted standards in banking, securities markets and insurance sector, the Finance Minister stated that we have voluntarily sought a full-fledged financial sector assessment programme (FSAP), an international evaluation exercise conducted by the IMF and the World Bank. The Finance Minister said that the country, today, is in a position to sustain high economic growth in the coming decades and create a more inclusive outcome for the society and emphasized Government's commitment to take the reform process forward.
Following is the text of the speech of Finance Minister, Shri Pranab Mukherjee delivered at the Second International Finance Conference at IIM Calcutta:
"It gives me great pleasure to be here today at the Indian Institute of Management-Calcutta, for the inaugural session of the Second International Finance Conference.
The recent global developments underscore the importance of understanding and regulating the financial markets and the innovative financial products in the interest of sustaining growth and development. We have seen how unfettered growth of financial sector can have dangerous implications for the real sector, both in the developed and the developing world. There is much that we need to know about their functioning, the best practices that underpin the creation of new financial products and the oversight issues so as to promote financial stability. I am very happy to know that this prestigious institution has recently set up a state-of-the-art facility to pursue these issues and ensure that the mangers of tomorrow are better equipped to work in this highly complex and dynamic area of our economies.
Following the global financial crisis and one of the deepest economic downturns that the world has witnessed in recent times, we are compelled to rethink some of our traditional principles of economic and financial policy making. For the first time after the World War II, nations have been forced to come together to explore and discuss the need for collective action, the need to regulate finance in a globalized world and the need to reform the international economic architecture. When that happens there is hope! We are together and engaged in finding ways to ensure better regulation of markets, strengthening the monitoring and response mechanisms to global developments and promoting growth in a sustainable manner. At the same time, countries in the developed and the developing world have adopted revival strategies in keeping with the needs of their respective contexts.
The US has pursued quantitative easing with a view to boost recovery and reduce their unemployment levels. Recent data shows some signs of improvement, especially in respect of real GDP growth and consumer confidence, even though unemployment rate continues to be a cause for worry. In case of Europe, there are some concerns, with Ireland seeking help from the European Union and the International Monetary Fund. A few other countries in the European Union may also be facing sovereign debt problems. There are some concerns on the strength of the post-crisis revival in these economies. However, major emerging market economies are experiencing robust growth, though serge in capital inflows and inflation, including from the hardening of global commodity price, is a source of worry. On the whole, 2011 should see an improvement in the world economy.
We have been more fortunate in surviving the crisis without major disruptions and have recovered our growth momentum much faster than most others. In the first half of 2010-11 the Indian economy recorded an overall GDP growth of 8.9 per cent which takes us back on the high growth path that the economy was traversing on in the years prior to the crisis. The concern on inflation remains. India's growth momentum, to some extent, is affected by developments in the western world. A faster recovery in the west is in the interest of all.
This resilience that India has demonstrated in recent times reflects a maturing of the economic management of the country and the growing competitiveness of our enterprise. This has happened even as the economy has become more integrated with global markets. It shows that globalization and economic resilience can go hand in hand.
In the post-crisis period, financial stability has become an integral part of policy discussions and macroeconomic objectives globally. The term 'financial stability' refers to a persistent state of robust functioning of various financial system components - markets, institutions and market infrastructure. It involves strengthening of the system to face any financial shocks with minimal disruptive impact. There is a process aspect which requires a rigorous, comprehensive and continuous systemic assessment of risk buildup across the financial system. Also an outcome aspect focused on having the necessary institutional and instrumental arrangements to take effective regulatory, supervisory and other policy measures to address the identified risks. A sound and resilient banking sector, well-functioning financial markets, robust liquidity management and payment and settlement infrastructure are the pre-requisites for financial stability.
As a part of the reforms in the financial sector in India, we have setup an apex-level Financial Stability and Development Council (FSDC), with a view to strengthen and institutionalise the mechanism for maintaining financial stability. Without prejudice to the autonomy of market regulators, this Council would undertake macro prudential supervision of the economy, including the functioning of large financial conglomerates, and address inter-regulatory coordination issues. It would also focus on financial literacy and financial inclusion. We have also decided to set-up a Financial Sector Legislative Reforms Commission (FSLRC) to rewrite and clean up the financial sector laws and bring them in line with the requirements of the sector.
The banking system has come into sharper focus after the global crisis. The fact that India has not gone through any financial turbulence, as a result of the earlier phase of financial deregulation is a testimony to our consistent view that reforms in global standards have to be adapted to local conditions. However, the cost of banking intermediaries in India is high and bank penetration is limited to only a few customer segments and geographies. We are trying to address this in collaboration with the Reserve Bank of India.
Innovation is conducive to economic growth, but growth must be inclusive, particularly for us. Financial inclusion is a key determinant of sustainable and inclusive growth. Access to affordable financial services - especially credit and insurance - enlarges livelihood opportunities and empowers the poor to take charge of their lives. Such empowerment aids social and political stability. It is critical to connect the banked and the unbanked sectors and enable the unbanked to become vibrant and productive participants in the process of economic growth. We have accorded high importance to financial inclusion to cover the entire gamut of financial services pertaining to savings, credit, insurance and transfers.
India did a self assessment (CFSA) of its financial sector in 2009. I am proud to state that according to this exercise, India is compliant with most of the internationally accepted standards in banking, securities markets and insurance sector. This has given us the confidence to get our financial sector evaluated by international financial institutions like the IMF and the World Bank. I am happy to state that we have voluntarily sought a full- fledged Financial Sector Assessment Programme (FSAP) which is an international evaluation exercise conducted by the IMF and the World Bank.
The global economic crisis has posed many questions for economic and financial models. There are theories based on assumption of rational economic agents and perfect information and that market always returns to equilibrium. Most of these assumptions do not hold good in the real world. The crisis has amplified the need for greater research in the fields of economics and financial analysis. This is where institutes like yours could play a key role. We need to draw the right lessons from developments around the world. We need to innovate, while at the same time we need to ensure that the complexities are understood, the risks are mitigated and there is reward for those who are willing to take risks. It must be recognized that all financial innovation is not necessarily destructive or inimical to financial stability.
Inclusion, growth, and stability as the three objectives of any reform process, and fortunately, these objectives are not in contradiction. With the right reforms, the financial sector can be an important vehicle for encouraging enterprise and ensuring the overall well-being of the people. The global crisis has offered the opportunity to revisit the conventional wisdom in many areas and review the approach to financial sector reforms. I hope all of us take advantage of this opportunity and move towards creating a more equitable and progressive world.
Today, as I stand before you, I am confident that we are in a position to sustain high economic growth in the coming decades and create a more inclusive outcome for our society. The Indian Government is committed to taking the reforms process forward. I have faith in the Indian entrepreneurial spirits and we have the political will to do the needful to sustain the present momentum of our economy."
Financial stability prioritized through macroprudential oversight and legal reform to strengthen regulation and expand inclusion.
The address prioritizes sustaining growth while managing inflation and external risks, and foregrounds institutional reforms to secure financial stability. It announces creation of a Financial Stability and Development Council for macroprudential supervision and inter-regulatory coordination, and a Financial Sector Legislative Reforms Commission to modernize laws. The government's voluntary participation in an international Financial Sector Assessment Programme is noted as validation of compliance with global standards. Emphasis is placed on expanding financial inclusion, reducing intermediation costs, enhancing banking penetration, and balancing innovation with risk mitigation.
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