Current Affairs - Economy

India’s real GDP growth for Q2 FY26 is estimated at 7.2%, reflecting a strengthening economic environment supported by robust private consumption, steady services sector performance, and sustained investment demand. Private consumption saw improved momentum due to rising real incomes, rural wage growth, low inflation, and tax relief measures from the FY26 Budget. On the supply side, both services and manufacturing contributed to higher output, aided by lower input costs. Investment activity remained stable, driven by government infrastructure spending and private sector capital formation. Despite global uncertainties, these factors combined to support India’s strong real GDP expansion for the quarter.

In Q2 2025, India’s unemployment rate for individuals aged 15 years and above fell to 5.2%, reflecting a modest but positive improvement in the labour market. This decline from 5.4% in Q1 2025 indicates better job creation and higher labour absorption, especially in rural areas supported by agricultural and government-led employment schemes like MGNREGA. The data, based on the Current Weekly Status (CWS) approach of MoSPI’s Periodic Labour Force Survey, also highlighted a rise in the female labour participation rate to 33.7% and a slight increase in the overall Labour Force Participation Rate (LFPR) to 55.1%, showing signs of gradual employment recovery.

According to NITI Aayog’s report titled “Reimagining Agriculture: A Roadmap for Frontier Technology Led Transformation,” India’s bioeconomy is expected to reach $300 billion by the year 2030. The projection covers key sectors such as agriculture, forestry, fisheries, and aquaculture. The report emphasizes the use of frontier technologies like artificial intelligence, digital twins, precision farming, and climate-resilient seeds to drive sustainable productivity growth. Under the leadership of NITI Aayog CEO BVR Subrahmanyam, this vision aims to position India as a global leader in bio-based innovation and economic transformation.

Amul, managed by the Gujarat Cooperative Milk Marketing Federation (GCMMF), secured the No. 1 global ranking in the 2025 ICA World Cooperative Monitor, followed by IFFCO at second place. This milestone highlights India’s leadership in cooperative governance and its success in promoting inclusive rural growth. Amul’s three-tier cooperative model connects millions of dairy farmers to national and international markets, ensuring fair income and empowerment for producers. Its achievements in innovation, value addition, and sustainability have transformed India’s dairy sector into a global model of cooperative excellence. The recognition also strengthens India’s vision of “Sahkar Se Samriddhi.”

India’s Goods and Services Tax (GST) revenue grew by 4.6% year-on-year in October 2025, reaching ₹1.96 lakh crore — the highest in five months but marking the slowest growth in over four years. Despite the moderation, revenues remained above ₹1.8 lakh crore for the tenth straight month, reflecting consistent economic activity and strong tax compliance. The slowdown was partly due to the government’s restructuring of GST slabs, which simplified the tax system by reducing higher-rate categories. This reform is expected to stimulate consumption and investment over time, helping sustain fiscal stability and support India’s long-term economic growth trajectory.