Union Finance Minister has launched National Monetisation Pipeline (NMP) 2.0. It outlines a five-year roadmap (FY 2026β2030) to monetise public infrastructure and attract private investment.
Key Highlights:
Total Monetisation Target: βΉ16.72 lakh crore
Time Period: FY 2026βFY 2030
Private Investment Target: βΉ5.8 lakh crore
Developed by NITI Aayog
Focus on brownfield infrastructure assets
What is National Monetisation Pipeline (NMP)?
TheΒ National Monetisation Pipeline (NMP)Β isΒ a central government initiative to unlock value from existing public infrastructure by leasing them to the private sector. It serves as a medium-term roadmap for “asset recycling,” where funds generated from mature, operational assets are reinvested into building new infrastructure projects
Leasing, Not Selling: The government retains 100% ownership of the assets. Private players are granted rights to operate and maintain them for a fixed period (typically 30β60 years) in exchange for upfront or periodic payments.
Brownfield Focus: It exclusively targets “brownfield” assetsβthose that are already built and generating revenueβto minimize execution risks for investors.
The Reserve Bank of India (RBI) has recommended the government to include a proposal on linking Central Bank Digital Currencies (CBDCs) of BRICS nations in the 2026 BRICS Summit agenda to enhance cross-border payments
RBI suggested integration of CBDCs among BRICS countries.
Aim: Enable faster, cheaper, and more efficient cross-border payments.
Could reduce dependence on the US dollar in global trade.
CBDC:
Central Bank Digital Currency (CBDC)Β is the digital form of a country’s fiat currency, issued and regulated by its central bank. It serves as a legal tender, equivalent to physical cash, and is a direct liability of the central bank rather than a commercial bank
In India, CBDC is known as the e-Rupee (eβΉ).
It is a legal tender and a direct liability of RBI, unlike cryptocurrencies.
Indiaβs real GDP growth is projected at 7.4% for FY26, according to the governmentβs First Advance Estimates, despite global uncertainties like US tariff pressures
GDP-Explained
Gross Domestic Product (GDP) measures the total value of goods and services produced within a countryβs borders in a given time period.
It is a key indicator of economic performance and growth.
GDP = Total value of final goods and services produced within India
Includes Net Indirect Taxes (GST β Subsidies) added to GVA
Excludes intermediate goods to avoid double counting
Types of GDP
Nominal GDP:
Measured at current market prices
Does not adjust for inflation
Real GDP:
Adjusted for inflation/deflation
Reflects actual growth in output
GDP vs GNP
Feature
GDP
GNP
Definition
Production within country
Income of nationals globally
Focus
Domestic territory
Ownership (citizens/companies)
Includes foreign companies in India
Yes
No
Includes income earned abroad
No
Yes
Examples:
A foreign company producing goods in India β counted in Indiaβs GDP
An Indian company earning income abroad β counted in Indiaβs GNP
Indiaβs retail inflation, based on the Consumer Price Index (CPI), increased to 1.33% in December 2025, up from 0.71% in November, as per data released by the National Statistical Office under the Ministry of Statistics and Programme Implementation.
Consumer Price Index:
Consumer Price Index (CPI)Β measures the average change over time in the prices paid by consumers for a representative “basket” of goods and services. It is the primary tool used to measureΒ inflationΒ and assess the cost of living
In India’s revised 2024 series, the basket includesΒ 358 itemsΒ classified under 12 divisions
Food and Beverages (46%):Β Still the largest component, though its relative weight has slightly declined.
Housing (10%):Β Now includes maintenance and water supply in its composite index.
Services:Β Coverage has expanded to 50 items, including digital services like OTT subscriptions.
The Reserve Bank of India (RBI) has introduced amendments to the Priority Sector Lending (PSL) guidelines to improve credit flow monitoring and strengthen financial inclusion
Priority Sector Lending (PSL)
Priority Sector Lending (PSL) is a regulatory framework mandated by the Reserve Bank of India (RBI) requiring banks to direct a specific portion of their credit to sectors that are essential for the country’s development but often lack adequate access to formal finance.
It ensures that crucial sectors which often face credit shortages receive adequate financing.
It is a key tool for achieving financial inclusion and balanced development.
PSL Sectors:
Agriculture
Micro, Small and Medium Enterprises (MSMEs)
Export Credit
Education
Housing
Social Infrastructure
Renewable Energy
Weaker Sections (included under βOthersβ)
PSL Targets:
Domestic Commercial Banks:
Must allocate 40% of Adjusted Net Bank Credit (ANBC) to priority sectors.
Union Cabinet has approved a βΉ5,000 crore equity infusion into SIDBI to enhance credit availability for MSMEs and ensure the institution maintains a strong financial position amid expanding lending operations.
The infusion will strengthen SIDBIβs lending capacity.
Helps maintain a healthy Capital to Risk-Weighted Assets Ratio (CRAR).
SIDBI (Small Industries Development Bank of India):
Established in 1990 under an Act of Parliament.
Acts as the principal financial institution for MSME promotion, financing, and development. Coordinates with other institutions involved in MSME financing.
Plays a vital role in industrial growth, employment generation, and exports.
Capital to Risk-Weighted Assets Ratio (CRAR):
Also known as Capital Adequacy Ratio (CAR).
Measures a bankβs capital in relation to its risk-weighted assets (RWA). Indicates the financial strength and stability of a bank.
A higher CRAR means better ability to absorb losses.
Governed by Basel Accords issued by the Basel Committee on Banking Supervision (BCBS).
The first meeting of the Payments Regulatory Board (PRB) was held in Mumbai under the chairmanship of the RBI Governor.
Payments Regulatory Board:
Payments Regulatory Board (PRB)Β isΒ a six-member statutory body within theΒ Reserve Bank of India (RBI)Β established to regulate and oversee the countryβs payment and settlement systems. It became operational by replacing the earlier Board for Regulation and Supervision of Payment and Settlement Systems (BPSS).
Composition: Chaired by the RBI Governor (currently Sanjay Malhotra), it includes two other RBI representatives and three nominees from the Central Government.
Focuses on regulation and supervision of digital and non-cash payment systems.
Decisions are made by a majority vote; the Chairperson holds a casting vote in case of a tie. The board must meet at leastΒ twice a year
Union Ministry of Agriculture has proposed a major restructuring of agricultural schemes by merging three schemes into Pradhan Mantri-Rashtriya Krishi Vikas Yojana (PM-RKVY).
Three schemes to be merged under PM-RKVY:
Krishonnati Yojana (KY) β Focus on food security & farmersβ income
National Mission on Natural Farming (NMNF) β Promotes chemical-free farming
National Bee and Honey Mission (NBHM) β Supports apiculture & pollination
Key Features of the Restructured Scheme:
Performance-Linked Funding Framework: For the first time, the allocation of central funds will be tied to aΒ “Reform Score,”Β shifting from an expenditure-driven approach to an outcome-oriented one.
30% of funds will depend on a βReform Scoreβ.
States will be incentivized for: Land leasing reforms, Agricultural market liberalization and Structural policy improvements.