June 2026
In short: India's schemes, budget and infrastructure this month — distilled for SI/Constable Prelims.
Current Affairs — India › Economy & Infrastructure · 18 min read · Free to read · English & Telugu
Bilingual study notes for the Andhra Pradesh Police SI & Constable exams (SLPRB AP) by AP Police Hub, a product of Anvil Academy.
The rupee's all-time low, the CAG's first consolidated State Finances report, the India-Oman CEPA, Kerala's fiscal White Paper, record seafood exports, India as the top ship-recycling nation, new RBI fraud-compensation rules, a rebased WPI/IIP, and a dozen agriculture, MSME and infrastructure schemes.
Ship Recycling Yard at Alang, Bhavnagar, Gujarat — the world's largest ship-breaking facility, the anchor of India's No.1 global ship-recycling ranking this month · Neilsatyam / Wikimedia Commons (CC BY-SA 4.0)
June 2026 — At a Glance
June was a heavy month for India's macro-economy — the rupee touched an all-time low against the dollar even as the CAG released its first-ever consolidated State Finances report and the India-Oman CEPA came into force. Agriculture saw El Niño-driven Kharif preparedness and a record seafood-export year; industry saw a rebased WPI/IIP, new coal-exchange rules, and India becoming the world's top ship-recycling nation; and finance saw pro-consumer RBI fraud rules and a wave of MSME digital platforms.
1. Macro-Economy: Rupee, Trade & Fiscal Health
Rupee slides to an all-time low
- What — The rupee-dollar rate touched an all-time low of ₹96.96; India follows a "managed float" exchange-rate system since 1993 — neither a pure float nor a fixed peg.
- Pressure factors — Crude oil imports (~USD 144 bn, ~90% import dependence), gold imports (USD 71.98 bn, +24%), a widening trade deficit (USD 94.7 bn → USD 119.3 bn, FY25-26), and foreign-investor capital outflow.
- Trade numbers — FY 2025-26 exports USD 860.09 bn (+4.2%); imports USD 979.4 bn (+~6.5%) — imports outpaced exports, widening the deficit.
CAG's first consolidated 'State Finances 2024-25' report
- Scope — First-ever consolidated CAG assessment of all 28 States' fiscal position over 2015-16 to 2024-25.
- Fiscal deficit — All 28 States in deficit in 2024-25; 18 States exceeded the 3% of GSDP FRBM limit; Meghalaya highest (8.69% of GSDP), then Nagaland (6.14%), Sikkim (5.59%).
- Debt & expenditure — Combined state debt ₹90.51 lakh crore (31 Mar 2025); total expenditure rose 131% over the decade (₹22.18 lakh crore → ₹51.20 lakh crore); committed expenditure ate >61% of revenue expenditure.
- Revenue structure — States' own tax revenue ~50% of receipts (₹40.52 lakh crore, more than doubled since 2015-16); State GST contributed >43% of own tax revenue.
Kerala's fiscal crisis — White Paper on State Finances
Kerala vs national average — key fiscal indicators| Indicator | Kerala |
|---|
| Outstanding liabilities | ₹5.07 lakh crore — ~35% of GSDP (national avg ~29.2%) |
| Interest burden | 20.9% of revenue receipts (national avg 12.2%) |
| Salaries+pensions+interest | 77.6% of revenue receipts, 2025-26 (national avg 46.1%) |
| Capital expenditure | 1.34% of GSDP (national avg ~3.2%) |
Rebased economic-data series — quick facts| Series | Key change |
|---|
| WPI Revision | Base year 2011-12 → 2022-23; new Producer Price Indices (Output PPI, Input PPI, Service PPI for 7 sectors) introduced alongside; WPI to phase out after 5 years of parallel release. |
| Revised IIP | 10th base-year revision (2011-12 → 2022-23); first IIP to add Gas Supply and Water Supply/Sewerage sectors; item basket expanded 839→1,042 products; new items: CCTV cameras, stents, vaccines; kerosene/CFLs removed. |
| District Domestic Product Guideline | NSO/MoSPI finalised a uniform DDP-estimation framework (base year 2022-23); 26 States/UTs currently compiling DDP estimates. |
| FCNR(B) & NRE deposit rate relaxation | RBI temporarily removed interest-rate ceilings on NRE deposits (≥3-yr tenor) and FCNR(B) deposits (3-5 yr tenor) till September 2026, to attract NRI inflows and support the rupee. |
2. Trade, Ports & Global Partnerships
India-Oman CEPA enters into force
- What — India-Oman CEPA came into force 1 June 2026 — duty-free access rises from 15.33% to 98.08% of tariff lines, covering 99.38% of India's export value.
- Services & mobility — Bilateral services trade USD 863 million (2024, India surplus ~USD 447 mn); Oman commits binding market access for Indian professionals (accounting, engineering, IT, healthcare, AYUSH).
- Strategic ports — Sohar (industrial hub near Hormuz), Duqm (deep-sea port, India has SEZ access), Salalah (Gulf–East Africa transshipment hub) position Oman as a gateway, not just a market.
India's Land Ports Expansion Plan
- What — LPAI proposes 74 new land ports — 23 in Phase I, 40 in Phase II, plus 11 already under construction; Phase I focuses on West Bengal/Siliguri Corridor for trade with Bangladesh, Nepal, Bhutan.
- China & Pakistan borders — India currently has zero operational land ports on the 3,488-km China border (3 proposed: Namgia, Gunji, Nathu La); only 1 operational on the Pakistan border (Attari) — 6 more proposed, though LoC centres have been suspended since the 2019 Pulwama attack.
- Significance — Could unlock ₹4.44 lakh crore in untapped trade potential with neighbours; supports the Act East/Neighbourhood-First policy.
Other trade & global-partnership updates — quick facts| Item | Key fact |
|---|
| India-UK Critical Minerals GSCO | India and UK launched the Global Supply Chain Observatory to monitor critical-mineral supply chains, jointly run by TEXMiN, IIT (ISM) Dhanbad, and University of Cambridge; first announced during Keir Starmer's Oct 2025 India visit. |
| BRICS Indore Declaration | 16th BRICS Agriculture Ministers' Meeting (Indore, MP, under India's presidency) adopted the Indore Declaration on 4 priority areas: food security, trade, climate-resilient farming, technology. |
| Assam-Nagaland oil deal | Centre, Assam & Nagaland signed an MoU to restart oil/gas exploration in the Disputed Area Belt (1,000+ sq km, stalled 30 years) with a 50:50 resource-sharing formula; Nagaland's return to oil production after 31 years. |
| Drop in bitumen imports | West Asia conflict hit India's ~90 lakh-tonne annual bitumen need (only ~54 lakh tonnes made domestically; >99% of imports from Iraq, UAE, Iran, Oman, Bahrain) even as National Highways grew 61% since 2014 (91,287 km → 1.47 lakh km). |
| Padma Barrage (Bangladesh) | Bangladesh approved a 2.1-km, 78-spillway-gate barrage on the Padma river (Rajbari district) — a response to drought caused by reduced flows linked to India's upstream Farakka barrage; will store ~2.9 billion m³ of water and irrigate 2.88 million ha. |
3. Agriculture & Rural Livelihoods
Kharif preparedness amid El Niño
- What — Southwest monsoon significantly delayed, rainfall ~43% below normal; ICAR/ICAR-CRIDA identified 315 vulnerable districts (111 high-priority, irrigation <25%) across 12 states including Telangana and Andhra Pradesh.
- Response — District Agriculture Contingency Plans prepared; expanded Pradhan Mantri Fasal Bima Yojana cover; faster Kisan Credit Card issuance; a national El Niño Monitoring Cell and Crop Weather Watch Group constituted.
Agriculture, fisheries & rural-craft updates — quick facts| Item | Key fact |
|---|
| Record seafood exports | FY 2025-26 all-time high: 19.72 lakh MT valued at ₹73,890.46 crore (USD 8.46 bn); frozen shrimp 40.19% of quantity, 66.52% of earnings; US the top value market, China top volume market; Vizag, JNPT, Kochi top export ports. |
| Mission Senehjori (Muga silk) | Ministry of DoNER launched a cluster-based mission (₹396-411 crore, 3 years) to transform Assam's Muga silk into a global luxury brand — 5 modern reeling units, 30 FPOs, GI-linked authentication by 2028. |
| Smart Warehousing for foodgrain | World's largest public-sector AI/IoT foodgrain-warehousing deployment — geo-tagged smart locks, AI bag-counting, face recognition; rolled out across 215 CWC + 150 FCI warehouses, benefiting 80 crore+ PDS beneficiaries. |
| World Gold Council Central Bank Survey 2026 | WGC (est. 1987, London) surveyed 76 central banks (Feb-May 2026) on gold as a reserve asset; publishes the Gold Demand Trends Report and promotes the Conflict-Free Gold Standard. |
| FAO/WFP Hunger Hotspots report | Warns of worsening acute hunger across 13 global hotspots; Sudan, South Sudan, Yemen, Palestine most critical; Nigeria and Somalia newly added; food-assistance funding fell ~60% (2022-2025). |
4. Industry, Energy & Logistics Infrastructure
India becomes the world's top ship-recycling nation
- What — UNCTAD: India's global ship-recycling share rose 30.1% → 35.4% (2024→2025), tonnage up ~60% to 2.99 million GT — the Maritime India Vision 2030 target achieved well ahead of schedule.
Logistics Port Performance Index (LPPI)
- What — MoPSW launched LPPI (FY 2024-25) under the Sagar Aankalan framework, aligned with PM Gati Shakti and Maritime India Vision 2030/2047; evaluates dry bulk, liquid bulk, container cargo.
- Top performers — Paradip topped Dry Bulk, Sikka topped Liquid Bulk, Mundra topped Container Cargo; India's World Bank Logistics Performance rank improved 44th → 22nd; 7 Indian ports in the world's top 100 (Container Port Performance Index 2024).
Industry & energy updates — quick facts| Item | Key fact |
|---|
| Coal Exchanges Rules 2026 | Follows the Mines & Minerals (Development & Regulation) Amendment Act, 2025's "Mineral Exchange" concept; Coal Controller Organisation (CCO) to register/regulate Coal Exchanges (25-year licences) for many-to-many electronic coal trading. |
| ATF Price Stabilisation Fund | Union Cabinet approved a ₹10,000-crore Aviation Turbine Fuel fund — fixed-price arrangement for airlines, shielding OMCs from losses and moderating fare volatility, especially for Tier-II/III connectivity. |
| Green Hydrogen Certification Portal (GHCI) | MNRE's digital certification platform under the National Green Hydrogen Mission — hydrogen certified "green" only if non-biogenic GHG emissions ≤2 kg CO₂e/kg H₂ (12-month average). |
| Energy Transition Index (ETI) 2026 | WEF+Accenture index (120 countries, 44 indicators) — India moved up to rank 70th (+1.9%), with strong gains in infrastructure and renewable-energy jobs (1.3 million, +25%). |
5. Finance, Credit & Digital Economy
RBI's new digital-fraud compensation rules
- What — RBI amended its 2017 circular on unauthorised e-banking liability to cover "fraudulent electronic banking transactions (EBTs)" — e.g. digital-arrest scams, stolen OTPs — where the customer was deceived, not just hacked.
- Compensation — For losses ≤₹50,000: up to 85% or ₹25,000 (whichever less), once in a lifetime; complaint must be lodged within 5 days; RBI pays ~three-fourths, banks split the rest.
- Context — FY 2025-26: fraud cases more than halved to 10,114 but the amount involved rose 46% to ₹48,021 crore; new rules run as a pilot from January 2027.
MSME, credit & digital-platform updates — quick facts| Item | Key fact |
|---|
| MSME Day 2026 digital platforms | 27 June: PMEGP 2.0 Portal (Jan Samarth-integrated), SAMADHAAN 2.0 (dues tracking), PMS Portal (trade-fair support), MSME Global Mart 2.0 (ONDC-linked), MSME Testing Portal, and Idea Hackathon 6.0 (₹15 lakh/idea) — all in 22 Scheduled languages via BHASHINI. |
| Credit Guarantee Scheme for MFIs 2.0 | Extended to 31 August 2026 or till ₹20,000 crore guarantees issued; large NBFC-MFI loan-amount ceiling raised from ₹300 crore to ₹1,000 crore (within 20% of AUM). |
| Jan Samarth Portal turns 4 | Digital gateway for 16 credit-linked govt schemes across agriculture, business, housing; 269 lending institutions onboarded, 8 languages; ~54.10 lakh applications (₹3,00,951 crore) processed by June 2026. |
| Navachar Mantra | MSDE's national grassroots-entrepreneurship initiative focused on Tier-2/3 cities and aspirational districts; implemented by NIESBUD with IIT Delhi's FITT as technical partner. |