India's Week in Data: UPI Turns 10, Services Inflation Gauge, Onion Express

This week's economic data offers a snapshot of India's digital payments revolution, inflationary pressures, and policy responses.

UPI at 10

The Unified Payments Interface (UPI) marked its tenth anniversary on 25 August 2016, having evolved from a novel payment rail into the backbone of India's digital economy. In FY26, UPI processed 241.62 billion transactions, a 30% increase from the previous year. The average transaction value has dropped to about ₹1,300 from a pandemic-era peak of ₹1,836, indicating broader adoption for everyday purchases. By June 2026, UPI accounted for nearly 84% of retail payment volumes and 58% by value. Its transaction value reached roughly 70% of currency in circulation by July, up from 27-40% in 2022.

New Services Price Gauge

The commerce ministry's newly introduced Service Producer Price Index (service PPI), with a base year of 2022-23, shows divergent trends in Q1FY27. Air passenger services saw a 31.9% year-on-year price surge, while banking services remained in deflation. The index covers seven services—banking, securities, insurance, pension-fund management, railways, air passenger services, and telecom—and is released quarterly. The Centre has noted that no aggregate weights have been assigned, as the index does not cover the entire services sector.

Kanda Express Rolls Again

With onion prices climbing, the Centre has revived the 'Kanda Express'—dedicated railway rakes transporting buffer stock from Nashik to consuming centres. The initiative, first used in October 2024, is now carrying onions from Lasalgaon to Delhi, with more consignments planned. All-India average retail onion prices rose 36.5% year-on-year to ₹38.7 per kg on 22 August, while wholesale prices climbed 40.5% to ₹31.2. The government plans to sell buffer stock at ₹35 per kg in Delhi.

Other Key Numbers

• ₹8,622 crore: Expected investment from privatising 11 airports, with profitable ones clubbed with smaller or loss-making ones.
• ₹1 trillion: Coal India's planned investment in rail connectivity and coal evacuation, targeting 1 billion tonnes annually by FY30.
• 7.4%: India's expected GDP growth for April-June, a four-quarter low, though less severe than feared.
• $103,265: Proposed additional fee for H-1B petitions by the US Department of Homeland Security.
• ₹2.62 trillion: Investment Indian Railways aims to attract under the national monetization pipeline.

NRI Deposits Diverge

NRI deposit inflows fell 23% year-on-year to $2.8 billion in Q1FY27, led by a decline in NRE deposits, while foreign-currency deposits gained. The RBI's special dollar-rupee swap facility for FCNR(B) deposits, introduced in June, saw forex inflows more than double to $1.7 billion. The facility was closed early on 31 August due to strong response.

India Tops EM Tracker

India retained the top spot in Mint's Emerging Markets Tracker in July with a score of 77.3, ahead of Vietnam and Malaysia. Despite some loss of momentum, GDP growth remained strong, exports accelerated to 19.5%, and foreign portfolio inflows supported markets. However, manufacturing PMI eased to 53.5, inflation rose to 4.5%, and the rupee depreciated 0.9%, limiting the score.