RBI Grade B Current Affairs — 1 September 2026

India's real GDP grew 6.5% year-on-year in Q1 FY2025-26 (April–June 2025), up from 6.7% in Q1 FY25. Gross Value Added (GVA) expanded 6.4%. Manufacturing surged 8.9%, construction rose 9.5%, and agriculture grew 2.0%. On the expenditure side, Gross Fixed Capital Formation (GFCF) grew 7.3%, signalling sustained investment. Private final consumption expenditure rose 6.8%. Nominal GDP grew 9.6%. The data, released by the National Statistical Office, positions India as one of the world's fastest-growing major economies.

GDP estimates in India are released by the National Statistical Office (NSO) under the Ministry of Statistics and Programme Implementation (MoSPI). India follows the 2008 System of National Accounts (SNA) methodology. GDP is measured from two primary angles in India's press releases: the production (GVA) approach and the expenditure approach.

The production side breaks GDP into sectors: agriculture, forestry and fishing; industry (mining, manufacturing, electricity, construction); and services (trade, finance, public administration). GVA at basic prices plus net taxes on products equals GDP at market prices.

The expenditure approach aggregates Private Final Consumption Expenditure (PFCE), Government Final Consumption Expenditure (GFCE), Gross Fixed Capital Formation (GFCF), change in stocks, valuables, and net exports.

For exam purposes, the key distinctions are: (1) Real GDP vs Nominal GDP — real GDP adjusts for inflation using base year 2011-12 prices; nominal GDP does not. (2) GDP vs GVA — GDP = GVA + Taxes on products – Subsidies on products. (3) GFCF as a proxy for investment in the economy — a rising GFCF signals expanding productive capacity.

The strong manufacturing (8.9%) and construction (9.5%) growth in Q1 FY26 reflects the capital expenditure push from Union Budget 2025-26, and the RBI's rate-cutting cycle that began in February 2025, which lowered borrowing costs and stimulated credit-financed investment. This is the transmission mechanism aspirants must understand — repo rate cut → cheaper credit → higher GFCF → GDP growth.

SEBI has barred Tarapur Transformers Limited and its promoter Rajendra Kumar Choudhary from the securities market after finding that ₹31.46 crore raised through public issues was diverted for purposes other than those stated in the prospectus. SEBI's interim order restrains them from buying, selling, or dealing in securities. The regulator found violations of SEBI's ICDR Regulations and LODR Regulations, alongside the Companies Act, constituting fraud against retail investors who subscribed based on disclosed fund-use statements.

This case illustrates SEBI's enforcement powers under the SEBI Act, 1992 and its subordinate regulations — specifically the Issue of Capital and Disclosure Requirements (ICDR) Regulations and the Listing Obligations and Disclosure Requirements (LODR) Regulations.

Fund diversion is one of the most serious offences in listed-company governance. When a company raises money through a public issue (IPO or FPO), it must disclose the exact objects of the issue in the prospectus. Deploying those funds for undisclosed purposes violates Section 27 of the Companies Act, 2013 (change in objects), SEBI's ICDR Regulations on use of proceeds, and LODR Regulations on continuous disclosure.

SEBI has the power under Section 11 and Section 11B of the SEBI Act to issue interim orders — without a hearing — when it believes immediate action is necessary to protect investors. The interim order is followed by a show-cause notice and quasi-judicial proceedings before a final order.

For the examiner, the key concepts are: (1) which regulations govern post-listing fund use, (2) the distinction between interim and final SEBI orders, (3) the promoter's joint liability alongside the listed entity, and (4) the threshold of disclosure for objects-of-issue changes. SEBI's enforcement here also demonstrates the overlap between corporate law (Companies Act) and securities law (SEBI Act), a classic exam boundary question.