India's Policy & Governance Intelligence — May 2026
Understand the policies
that shape your life.
Free tools, deep analysis, and plain-language explainers on tax, schemes, budget, and rights — for every Indian citizen.
₹331L Cr
India GDP FY26
6.5%
GDP Growth
6.00%
Repo Rate
3.16%
CPI Apr 2026
₹12L
Zero Tax Limit
$690B+
Forex Reserves
Budget Calculator
Income Tax
Scheme Finder
GST Calculator
SIP Comparator
Home Loan
RTI Drafter
Inflation Calc
Monetary Policy
RBI holds repo at 6.00% — stance neutral, growth upgraded to 6.7%
What happened: RBI MPC held repo at 6.00% in April 2026 after 50bps of cuts earlier in the cycle. Stance shifted to "neutral."
For you: Home loan EBLR-linked rates now 8.5–9.2%. FD rates at major banks: 7.0–7.5% for 3 years. Next possible cut: August 2026.
Do this: Lock in a 3-year FD now before rates fall. If on MCLR home loan, request switch to EBLR for faster transmission.
April 2026 · RBI MPC
Tax
Zero tax on ₹12L income — new regime is now default
What happened: Finance Act 2026 confirms ₹12L zero-tax threshold under new regime. Standard deduction ₹75,000 for salaried.
For you: Effective zero tax up to ₹12.75L for salaried. New regime is now the default — you opt out for old.
Do this: Use the Tax Calculator above to confirm which regime saves you more before filing ITR.
Budget 2026-27 · CBDT
Digital Rights
DPDP Rules 2025 operational — your data has rights now
What happened: Digital Personal Data Protection Rules 2025 came into effect. Platforms must take explicit consent per purpose.
For you: You can now request data erasure, correction, and nomination rights. Apps cannot bundle consent.
Do this: Review app permissions. Withdraw unnecessary consents. Report violations to Data Protection Board.
Jan 2026 · MeitY
Health
Ayushman Bharat expanded — all 70+ citizens now covered
What happened: PM-JAY extended to all citizens aged 70+ regardless of income. ₹5L cover per year per senior.
For you: 6 crore senior citizens newly eligible. Coverage at 29,000+ empanelled hospitals.
Do this: Enrol at pmjay.gov.in or nearest Aadhaar centre. Carry Aadhaar + age proof.
Dec 2025 · NHA
UPI
UPI hits ₹24L Crore monthly — Digital Rupee pilot expanding
What happened: UPI processed 18.9B transactions in Feb 2026. RBI's e-Rupee CBDC pilot crosses 5L users.
For you: Zero MDR on UPI transactions continues. e-Rupee offers offline payment capability.
Do this: Small businesses — register on NPCI merchant portal. No fees, direct bank settlement.
Feb 2026 · NPCI · RBI
Featured Analysis
Latest from Nitivaad
Schemes
May 2026 · 4 min read
PM Surya Ghar vs State Free Electricity — Which Model Offers Better Long-Term Value?
India's two competing approaches to electricity access for households. One offers free units forever, the other offers subsidised infrastructure ownership. The implications for the citizen, the state, and the grid are fundamentally different.
Read Analysis ↓
📋 The Core Difference
PM Surya Ghar Muft Bijli Yojana offers households a capital subsidy of ₹30,000–₹78,000 to install rooftop solar. In return, you generate your own power and get 300 free units per month from surplus generation fed to the grid. State free electricity schemes (Rajasthan, Punjab, Tamil Nadu) provide 0–200 units free monthly without any infrastructure investment — funded by state budget.
📋 What This Means for You
Under PM Surya Ghar: one-time setup, 25-year panel life, 4–5 year payback. After that, near-zero electricity bills permanently. Under state schemes: no investment needed, immediate benefit — but dependent on state fiscal health. Punjab's scheme alone costs ₹7,000 crore/year. Several states have reduced free units as fiscal pressure mounts.
Q: Which is better for a middle-class homeowner?
PM Surya Ghar wins long-term. A 3kW system with ₹78,000 subsidy costs ₹90,000–₹1.2L net. With 300 free units, you recover the investment in 4–5 years and save ₹3,000–₹4,500/month for the next 20 years. State freebies carry fiscal risk — several states have already started scaling back.
💡 Nitivaad View: Productive subsidy (PM Surya Ghar) builds household assets and reduces grid burden. Consumptive subsidy (free units) is a recurring fiscal liability. For any citizen with a rooftop, PM Surya Ghar is structurally superior. Register at pmsuryaghar.gov.in.
Monetary Policy
May 2026 · 4 min read
RBI Holds at 6.00% — What the Rate Pause Means for Borrowers & Savers
RBI's April 2026 MPC pause after 50bps of earlier cuts signals a watchful neutral stance. Home loan rates, FD rates, and EMIs — what changes and what to do now.
Read Analysis ↓
📋 Key Numbers
Repo: 6.00% (held). GDP forecast upgraded to 6.7% for FY27. CPI: 4.0% Q1 FY27. Home loan EBLR-linked rates: 8.5–9.2%. FD rates at major banks: 7.0–7.5% for 3 years. Next possible cut: August 2026 MPC.
Q: Should I lock in an FD now?
Yes. If you have surplus funds, a 3-year FD at 7.0–7.5% locks in current rates before banks cut them post any August rate reduction. Senior citizens get 7.5–8.0%.
💡 Action: Switch MCLR home loans to EBLR for faster rate transmission. Lock 3-year FDs now.
Tax
May 2026 · 3 min read
Income Tax Act 2025 — 1961 Act Replaced. What Every Indian Taxpayer Must Know
After 63 years, the Income Tax Act 1961 has been replaced by the Income Tax Act 2025. Same rates, cleaner language — and some important structural shifts.
Read Analysis ↓
📋 What Changed
Zero tax up to ₹12L retained. New regime remains default. Employer NPS deduction raised to 14% for all employees. "Assessment Year" replaced with "Tax Year." 536 cleaner clauses replace the old 298 + amendments structure. Effective from Tax Year 2025-26.
Q: Do I need to do anything differently for ITR filing?
No change for FY 2025-26 filing. Use the updated ITR form from incometax.gov.in. File by July 31, 2026.
💡 Action: Download updated ITR form. Verify your employer has updated NPS deduction to 14%.