Economy

Silver prices witnessed a sharp and decisive correction in the domestic futures market, plunging 9 percent to hit the lower circuit limit at Rs 2.06 lakh per kilogram. The steep decline was driven by weak global cues, a strengthening US dollar, and rising bond yields, which collectively dampened investor interest in precious metals. Despite ongoing geopolitical tensions in West Asia, macroeconomic pressures dominated market sentiment.

India’s foreign exchange reserves declined by USD 7.052 billion to USD 709.759 billion for the week ended March 13, extending a recent downward trend after hitting a record high in February. The fall was primarily driven by a sharp drop in foreign currency assets, the largest component of reserves. 

India’s core infrastructure sector recorded a slowdown in growth to 2.3 percent in February, down from 3.4 percent in the same period last year, reflecting emerging pressures within key industrial segments. The deceleration was primarily driven by declines in crude oil, natural gas, and refinery output, which continue to weigh on overall performance. 

The Reserve Bank of India (RBI) has announced an overnight variable rate repo (VRR) auction worth Rs 1 lakh crore, scheduled for March 23, as part of its ongoing liquidity management strategy. The move aims to address evolving liquidity conditions within the banking system by enabling banks to access short-term funds efficiently. The auction window will remain open for a limited duration, with funds set to be reversed the following day.

A sharp rise in fraudulent phone calls linked to LPG bookings has emerged as a serious concern in Punjab, fueled by rumors of supply disruptions and heightened consumer anxiety. Cybercriminals are exploiting panic-driven demand by impersonating representatives of major gas providers and using phishing tactics to extract sensitive financial information. Authorities warn that increased digital adoption, combined with misinformation about shortages, has created a fertile environment for such scams.

A fresh inter-state dispute has emerged as Bhagwant Mann announced that Punjab will seek Rs. 1.44 lakh crore in unpaid water royalty from Rajasthan. The claim traces back to a pre-independence agreement governing water supply arrangements, under which payments were allegedly discontinued after 1960. With Rajasthan continuing to receive substantial water flows, the issue has resurfaced with financial and political implications.

Finance Minister Nirmala Sitharaman reaffirmed on Friday that India will maintain its fiscal discipline for FY26 despite introducing the second batch of Supplementary Demands for Grants, amounting to Rs 2.81 lakh crore across 61 grants. Addressing the Lok Sabha, she assured members that these additional allocations remain within the government’s fiscal deficit target of 4.4 per cent of GDP for 2025–26, while setting a lower target of 4.3 per cent for FY27.

Prime Minister Narendra Modi on 13 March 2026 released the 22nd installment of the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme in Guwahati, Assam, transferring approximately Rs 20,500 crore to over 9.7 crore farmers through Direct Benefit Transfer (DBT). This central sector scheme provides Rs 6,000 annually to landholding farmers, distributed in three equal installments. 

India’s basmati rice exports are expected to remain stable in the current and next financial year despite geopolitical tensions in West Asia. Export volumes are projected to grow by up to 2 percent from the 6.06 million tonnes recorded in FY25. While shipments to Iran—traditionally a major buyer—may decline due to regional uncertainties, rising demand from markets such as Saudi Arabia, Iraq, the United Arab Emirates, and Yemen is expected to offset the impact. 

The Tripura government has announced a 5 percent increase in dearness allowance (DA) for state government employees and pensioners, raising the total DA level to 41 percent. The revised rate will come into effect from April 1 and will benefit more than 1.8 lakh individuals, including over 1.02 lakh employees and 81,000 pensioners. The decision reflects the state’s ongoing effort to narrow the compensation gap between its workforce and central government employees. However, the move will also place an additional fiscal burden of approximately Rs.