Current Affairs - Economy

The SBI report highlights a significant boost to India’s agricultural exports to the United States, with 75% of export items now receiving zero-tariff access. This improved tariff framework enhances price competitiveness and expands market opportunities for Indian exporters. Agricultural products worth over $1 billion are assured zero reciprocal tariff benefits, strengthening India’s existing $1.3 billion trade surplus in agri-trade with the US. Key beneficiary sectors include rice, fisheries, tea, coffee, and spices. The move is expected to increase export volumes, improve price realisation, and support farmers and rural income growth through better global market integration.

Uttar Pradesh presented its first-ever Economic Survey 2025-26, marking a significant milestone in the state’s fiscal and developmental planning. The survey outlines a comprehensive, investment-led growth strategy aimed at transforming the state into a $1 trillion economy. It highlights strong Gross State Domestic Product growth, rising investor confidence, and major infrastructure expansion, including expressways and airports. The document also emphasises industrial cluster development, agricultural productivity, digital governance reforms, and improved law and order. With sustained double-digit growth and large-scale investment proposals, the state positions itself as a rapidly emerging economic powerhouse in India.

Bengaluru is the city where Union Minister Ashwini Vaishnaw inaugurated Zetwerk’s mega electronics plant. The facility is designed to support manufacturing for defence, automotive, and IT hardware sectors, strengthening India’s electronics ecosystem. This inauguration aligns with the government’s expanded manufacturing incentive scheme, which has been increased to ₹40,000 crore with an ambitious target of achieving $500 billion in electronics production by 2031 under the Silicon 2.0 initiative. The development also complements India’s long-term vision of building advanced semiconductor capabilities and supporting the journey toward a Viksit Bharat by 2047.

India secured the sixth position in the Asia Manufacturing Index 2026, placing it in the middle among 11 Asian manufacturing economies. The index evaluates countries on multiple pillars such as economic strength, infrastructure quality, workforce readiness, innovation capacity, and trade environment. India’s ranking reflects steady progress supported by a large domestic market and improving infrastructure, but it also highlights the need for faster reforms and stronger execution. As competition intensifies across Asia, enhancing ease of doing business, logistics efficiency, skills development, and technological adoption will be essential for India to improve its manufacturing competitiveness.

The International Monetary Fund (IMF) has revised India’s 2025 economic growth forecast upward to 7.3%, reflecting stronger-than-expected performance in the third and fourth quarters of 2025. This revision indicates continued robust momentum in India’s economy, supported by technology-led investment and other structural factors. While growth is expected to moderate to 6.4% in 2026–27, India remains a leading contributor among emerging economies. The IMF also noted that inflation is projected to reach target levels in 2025, with global growth remaining steady at 3.3%, highlighting India’s relatively stronger performance in the global context.