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March 31, 2026
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Manufacturing activity rebounds as energy costs, supply-chain risks, and weak demand cloud China's growth outlook.
China's manufacturing activity returned to expansion in March as the official purchasing managers index rose above 50, ending two months of contraction. Analysts said the outlook remains vulnerable to higher energy costs, possible supply-chain disruption, a prolonged property-sector slump, and weaker global demand, while exports continue to play a key role in supporting growth.
March 30, 2026
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Asset restitution under PMLA advances recovery for PACL investors after attachment of properties in alleged investment fraud.
Assets worth more than Rs 15,000 crore have been restored under the Prevention of Money Laundering Act to a Supreme Court-appointed committee for distribution to investors allegedly defrauded in the PACL collective investment scheme. A special PMLA court ordered restitution of 455 immovable properties to the Justice Lodha Committee, reflecting the statutory remedy of restoration of attached assets to victims of fraud and proceeds of crime. The ED's action is part of an investigation into allegations of an illegal collective investment scheme and the attachment of properties held by PACL entities, family members and associates.
March 30, 2026
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Rupee volatility intensifies as geopolitical tensions, dollar strength and RBI net open position caps pressure forex markets.
The rupee fell sharply in intra-day trade and briefly crossed the 95-per-US dollar level before closing at 94.70, with volatility attributed to heightened geopolitical tensions, risk-off sentiment, a firm dollar index and higher crude oil prices. The Reserve Bank of India reduced the net open position that banks may maintain overnight and capped Net Open Position (NOP-INR) at USD 100 million through a circular dated March 27, 2026, with compliance required by April 10, as part of monitoring currency exposure in a volatile foreign exchange market.
March 30, 2026
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Money laundering attachment under PMLA targets immovable assets linked to alleged diversion and siphoning of company funds.
Provisional attachment under the Prevention of Money Laundering Act was issued in respect of land parcels and other immovable assets valued at more than Rs 271 crore. The attached properties included land parcels in Panvel and Shahapur talukas of Maharashtra, in connection with an ongoing money-laundering investigation concerning Rajendra Lodha, a former director of Lodha Developers. The allegations concerned diversion and siphoning of company funds and assets through unauthorised transfer of properties at undervalued prices, fabrication of Memorandums of Understanding, and misappropriation of inflated amounts.
March 30, 2026
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Summons compliance in excise policy probe challenged as the agency disputes acquittal and alleges deliberate non-appearance.
The Enforcement Directorate has challenged the acquittal of Arvind Kejriwal in two summons-compliance cases arising from the excise policy matter, alleging intentional failure to appear despite repeated summonses and deliberate creation of grounds to avoid the probe. The trial court had found that the ED failed to prove intentional disobedience. The broader excise policy and money-laundering proceedings remain pending in connected forums.
March 30, 2026
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Rupee depreciation and forex speculation curb as the Reserve Bank limits bank net open positions in the onshore market.
The rupee fell sharply against the US dollar in FY26 because of foreign fund outflows, high crude prices, global dollar strength, tariff pressure, geopolitical tensions, and volatile markets. The Reserve Bank of India intervened by selling dollars and later introduced a measure requiring banks to limit net open positions in the onshore currency market to curb excessive speculation and reduce one-sided bets against the rupee.
March 30, 2026
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Insolvency resolution process dispute tests value maximisation, fair bidding and creditor discretion in Jaiprakash Associates acquisition plan.
Vedanta Ltd has challenged the approval of Adani Enterprises Ltd.'s resolution plan for Jaiprakash Associates Ltd. in insolvency proceedings and sought a stay on its implementation. The dispute concerns the validity of the resolution plan, the approvals granted by the Committee of Creditors and the adjudicating authority, and the application of the Insolvency and Bankruptcy Code principles of value maximisation, fair bidding, feasibility and execution. The appellate tribunal has sought a response from the Committee of Creditors and noted that implementation of the plan will remain subject to the outcome of the appeals.
March 30, 2026
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Money laundering and fugitive offender laws address bank fraud attachments, confiscation, and restrictions on economic offenders abroad.
The Enforcement Directorate has investigated bank fraud matters under the Prevention of Money Laundering Act, with arrests, prosecution complaints, convictions, attachment of proceeds of crime, and confiscation and restitution of assets in some cases. The Fugitive Economic Offenders Act, 2018 is described as a measure to deter offenders from evading Indian law by staying abroad and provides for confiscation of properties, proceeds of crime and benami properties, lookout notices, and restrictions on raising capital, acquiring shares, or voting rights.
March 30, 2026
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Notice of demand under the income tax law sets payment timelines, appellate details, and options for instalments or extension.
Form 103 is the notice of demand issued by the Assessing Officer under section 289 of the Income-tax Act, 2025 read with rule 179 of the Income-tax Rules, 2026, to communicate tax, interest, penalty or any other sum payable for a tax year or block period. It is based on an assessment order, penalty order, TDS default, rectification, order giving effect, or other order creating a recoverable demand. The demand is ordinarily payable within 30 days, may be modified by the Assessing Officer, and reduction below 30 days needs prior approval of the Joint Commissioner.
March 30, 2026
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Social and environmental statistics dissemination strengthens evidence-based policymaking through MoSPI's digital platforms, SDG dashboard, and stakeholder consultations.
MoSPI regularly releases social and environmental statistics publications through its official website and related digital platforms, including environment statistics, environment accounts, SDG indicator reports, and thematic demographic reports. The Ministry also uses the India SDG Dashboard, e-Sankhyiki portal, and Advance Release Calendar to support centralized data access, monitoring, and timely dissemination, while expert groups and stakeholder consultations are used to improve coverage, quality, relevance, accessibility, and public awareness.
March 30, 2026
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Artificial intelligence integration improves data discovery and user interaction on the Ministry's eSankhyiki portal and revamped website.
Artificial intelligence is being integrated into the eSankhyiki portal and the Ministry's revamped website to improve accessibility, searchability and usability of reports, datasets and publications. An AI-enabled chatbot has also been hosted to improve data discovery and user interaction, while no specific timeline has been fixed for full implementation of the AI-enabled tools.
March 30, 2026
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Energy statistics compilation highlights expanded energy-sector data coverage, harmonised end-use reporting, and growth in renewables and consumption.
The National Statistics Office has released the annual publication Energy Statistics India 2026, an integrated statistical compendium on India's energy sector. The publication brings together data on reserves, capacity, production, consumption, and import-export of major energy commodities, and includes energy balance tables, graphs, and sustainable energy indicators aligned with international standards. The 33rd edition expands coverage by adding credit flow, world energy statistics, coal consumption through e-auction, imported non-coking coal, sector-wise electricity consumption, and bunker supply data, while harmonising end-use consumption statistics across energy commodities.
March 30, 2026
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Notice of demand in Form 103 sets out tax dues, payment timelines, and options for extension or instalments.
Notice of demand in Form 103 is issued by the Assessing Officer under section 289 of the Income-tax Act, 2025 read with Rule 179 of the Income-tax Rules, 2026 to communicate tax, interest, penalty or other sums payable for a tax year or block period. The demand is ordinarily payable within 30 days from service of the notice, though the Assessing Officer may alter the due date; any shortening requires prior approval of the Joint Commissioner. The assessee may pay through prescribed modes or seek extension or instalments before expiry of the payment period.
March 30, 2026
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Union Government monthly accounts show consolidated receipts, expenditure and tax devolution up to February 2026.
Monthly accounts of the Union Government for the period up to February 2026 for FY 2025-26 record consolidated receipts, expenditure and tax devolution. The Government received total receipts of Rs.27,91,943 crore, comprising net tax revenue, non-tax revenue and non-debt capital receipts, and transferred Rs.12,66,369 crore to State Governments as devolution of share of taxes, higher than the previous year by Rs.85,837 crore. Total expenditure incurred up to February 2026 stood at Rs.40,44,592 crore, including revenue expenditure and capital expenditure.
March 30, 2026
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TDS credit mismatch resolution through electronic filing of Form No. 102 for aligning tax years and deduction records.
Form No. 102 is an electronic application for claiming TDS credit where income was offered to tax in one tax year but the related tax was deducted and reported by the deductor in a later year. The form is filed by eligible taxpayers to align the TDS credit with the correct tax year, and it requires particulars of the assessee, the relevant income, the deduction details, and supporting documents. The application is submitted through the e-filing portal and processed by the Assessing Officer.
March 30, 2026
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TDS credit mismatch relief through Form No. 102 allows taxpayers to align credit with the correct tax year online.
Form No. 102 is an optional online application for claiming TDS credit where income was included in a return for one tax year but the tax was deducted and deposited in a subsequent tax year. It may be filed by any taxpayer to align the TDS credit with the correct tax year in cases of timing mismatch, subject to a filing window of two years from the end of the financial year in which the TDS was deducted and reported. The form contains Part A and Part B, requires a valid PAN, cannot be edited after submission, and is filed only through the e-filing portal.
March 30, 2026
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Tax evasion detection in hospitality sector expands through data analytics, GST matching, and digital payment verification.
A state-wide tax enforcement drive in the hospitality sector has identified suspected turnover suppression through data analytics, risk assessment, and comparison with GST returns. The investigation covers establishments such as dhabas, restaurants, eateries, bakeries, sweet shops, and catering services, using tax intelligence inputs, online billing data, and digital payment records to verify reported turnover against actual receipts.
March 30, 2026
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Inventory valuation report requirements under tax law govern Cost Accountant certification, filing timelines, and verification of inventory valuation.
Form 101 is the prescribed inventory valuation report to be furnished by a Cost Accountant when an Assessing Officer directs valuation of inventories under Section 268(5)(ii) of the Income-tax Act, 2025 read with Rule 171. It is used to support correct inventory valuation for tax computation and verification, and is filed only when special valuation is directed. The report must be submitted within the time allowed by the Assessing Officer, subject to any extension not exceeding six months from the end of the month in which the direction is received.
March 30, 2026
Show AI Summary
Inventory valuation reporting in Form 101 requires Cost Accountant certification when valuation is directed for tax compliance.
Inventory Valuation Report in Form 101 is furnished by an assessee when the Assessing Officer directs inventory valuation under section 268(5)(ii) of the Income-tax Act, 2025 read with rule 171 of the Income-tax Rules, 2026. The report is prepared and certified by a Cost Accountant after examining books, records and supporting documents, and is used for accurate inventory valuation for tax computation, verification and compliance with the Income Computation and Disclosure Standards. Form 101 is filed only for the tax year in which the direction is issued, within the time allowed by the Assessing Officer.
March 30, 2026
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E-commerce moratorium and TRIPS safeguard lapse as WTO ministers fail to reach consensus on digital trade rules.
Failure of the WTO ministerial conference to reach consensus on the extension of the e-commerce moratorium left unresolved the commitment not to impose customs duties on electronic transmissions. The deadlock reflected differing positions on the duration of the extension, and the lapse raises the prospect that members may impose import duties on digital transmissions. The same impasse also ended the safeguard against non-violation complaints under the TRIPS Agreement, increasing the risk that WTO-compliant measures may be challenged for affecting expected commercial gains.

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Monetary Policy Statement, 2026-27 Resolution of the Monetary Policy Committee April 6 to 8, 2026

April 8, 2026

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Monetary Policy Decisions

The Monetary Policy Committee (MPC) held its 60th meeting from April 6 to 8, 2026, under the chairmanship of Shri Sanjay Malhotra, Governor, Reserve Bank of India. The MPC members Dr. Nagesh Kumar, Shri Saugata Bhattacharya, Prof. Ram Singh, Dr. Poonam Gupta and Shri Indranil Bhattacharyya attended the meeting.

2. After a detailed assessment of the evolving macroeconomic and financial developments and the outlook, the MPC voted unanimously to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 5.25 per cent. Consequently, the standing deposit facility (SDF) rate remains at 5.00 per cent and the marginal standing facility (MSF) rate and the Bank Rate remains at 5.50 per cent. The MPC also decided to continue with the neutral stance.

Growth and Inflation Outlook

Global Outlook

3. The outbreak of the conflict in West Asia has led to severe disruption of global supply chains. This poses an unprecedented challenge for the global economy – higher prices and lower global growth. In this environment, monetary policy faces a difficult trade-off – anchoring inflation expectations through policy tightening while minimising its impact on growth forgone. Sovereign bond yields, already high from long-run fiscal sustainability concerns across major economies, have further hardened, driven by inflation fears. Additionally, equity valuations have corrected. As a result of the turmoil in global financial markets, the US dollar has rallied, buoyed by safe‑haven demand that has exerted pressure on currencies of major economies. Further intensification of the conflict, its prolongation and widening geographical spread remain the key downside risks to the global outlook.

Domestic Outlook

4. On the domestic front, the Indian economy remained resilient in 2025-26. Real gross domestic product (GDP) is estimated to grow by 7.6 per cent (y-o-y) during the year, as per the Second Advance Estimates (SAE) of the new GDP series (base year 2022-23). Private consumption and fixed investment contributed significantly to overall growth, while net external demand remained soft. On the supply side, estimated real GVA growth of 7.7 per cent was driven by buoyant services sector and robust manufacturing activity.

5. Looking ahead, elevated energy and other commodity prices coupled with supply shock due to disruptions in the Strait of Hormuz would act as a drag on domestic production in 2026-27. Heightened volatility in global financial markets with its spillover on domestic financial conditions would weigh on growth prospects. On the external front, merchandise exports may be adversely impacted from disruptions to key shipping routes and the concomitant rise in freight and insurance costs in case the conflict is long-drawn. On the other hand, sustained momentum in services sector, persisting impact of GST rationalisation, rising capacity utilisation in manufacturing, and healthy balance sheets of financial institutions and corporates should continue to support domestic demand. In this milieu, the Government’s focus on scaling up domestic manufacturing in several strategic and frontier sectors announced in the Union Budget 2026-27 bodes well for India’s ensuing growth trajactory. Taking all these factors into consideration and on the assumption that the adverse impact of the conflict would remain contained in the near term, real GDP growth for 2026-27 is projected at 6.9 per cent, with Q1 at 6.8 per cent; Q2 at 6.7 per cent; Q3 at 7.0 per cent; and Q4 at 7.2 per cent (Chart 1). Further escalation of the conflict, its continuation over a wider geographical spread and uncertainty regarding the damage to the energy infrastructure, apart from weather related events, pose downside risks to the domestic growth outlook.

6. As per the new CPI series (2024=100), headline inflation increased to 3.2 per cent in February 2026 from 2.7 per cent in January. The uptick was primarily driven by unfavourable base effects even as the momentum remained muted. While food inflation increased in February, core (excluding food and fuel) inflation remained unchanged. Excluding precious metals, core inflation remained moderate at 2.1 per cent in January and February, suggesting subdued underlying inflation pressures.

7. The ongoing conflict has led to large volatility in international energy and other commodity prices imparting considerable uncertainty to the near-term inflation outlook. The pass-through of higher global energy prices has resulted in price increases in select fuels such as premium petrol and LPG and diesel for industrial use. On the other hand, the near-term food supply prospects have been boosted by robust rabi crop providing some comfort. Considering all these factors, CPI inflation for 2026-27 is projected to be at 4.6 per cent with Q1 at 4.0 per cent; Q2 at 4.4 per cent; Q3 at 5.2 per cent; and Q4 at 4.7 per cent. Persistently elevated energy prices due to the West Asia conflict and possible El Niño conditions (which could have a negative impact on southwest monsoon) pose upside risks to inflation (Chart 2). Core inflation is projected at 4.4 per cent for 2026-27 and, excluding precious metals, it is even lower indicating that underlying inflation pressures are expected to remain contained.

Chart 1 and 2

Rationale for Monetary Policy Decisions

8. Since the last policy meeting, geopolitical uncertainties have heightened significantly. Headline inflation remains contained and below the target, but upside risks to the inflation outlook have increased, driven by increased energy price pressures and probable weather disturbances affecting food prices. Core inflation pressures remain muted, although supply chain dislocations and the risk of second-round effects render the future inflation trajectory uncertain.

9. High frequency indicators till February 2026 suggest the continuation of strong momentum in economic activity. Growth impulses continue to be supported by robust private consumption and investment demand. However, the West Asia conflict will adversely impact growth. Higher input costs associated with increase in energy prices and international freight and insurance costs along with supply-chain disruptions could constrain availability of key inputs for downstream sectors, thus impairing growth. The Government has taken several measures targeted at supporting exports and protecting supply chains, which should mitigate the adverse impact of the conflict.

10. The MPC noted that the intensity and the duration of the conflict in West Asia and the resultant damage to the energy and other infrastructure add risk to the inflation and growth outlooks. However, the fundamentals of the Indian economy are on a stronger footing, providing it with greater resilience to withstand shocks now than in the past. The economy is confronted with a supply shock. It is prudent to wait and watch the changing circumstances and the evolving growth-inflation outlook. Accordingly, the MPC voted to keep the policy rate unchanged even as it remains vigilant, closely monitoring incoming information and assessing the balance of risks. The MPC also decided to continue with the neutral stance, retaining the flexibility to respond judiciously to incoming information.

11. The minutes of the MPC’s meeting will be published on April 22, 2026.

12. The next meeting of the MPC is scheduled for June 3 to 5, 2026.

(Brij Raj)           
Chief General Manager

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