Current Affairs - Economy

India’s overall unemployment rate for individuals aged 15 and above stood at 4.8% in December 2025, slightly higher than November’s 4.7%. While rural unemployment remained steady at 3.9% and urban female joblessness decreased to 9.1%, the overall rate reflects the aggregate of rural and urban employment trends. The Labour Force Participation Rate increased to 56.1%, and the Worker Population Ratio reached a yearly high of 53.4%, indicating a marginal improvement in workforce engagement. These figures provide insights into employment dynamics, highlighting both stability and gradual changes in the Indian labour market.

The World Bank has revised India’s GDP growth projection upward to 7.2% for FY26, up from an earlier estimate of 6.3% in June 2025. This revision reflects strong domestic demand, robust private consumption, and the positive impact of tax reforms that have improved disposable incomes, particularly in rural areas. Despite global uncertainties, including US tariffs on imports, India is expected to remain the fastest-growing major economy in FY26. The growth moderation to 6.5% is projected only for FY27, making 7.2% the accurate forecast for the current fiscal year.

India’s wholesale price inflation recorded a marginal rise to 0.83% in December 2025, marking a return to positive territory after two consecutive months of deflation. This increase was driven mainly by higher prices of manufactured goods, non-food articles, and certain raw materials. While food and fuel categories continued to remain in deflation, the intensity of price decline reduced significantly, supporting the overall upward movement. The data reflects stabilising input costs and improving demand conditions in the economy, even as inflation levels remained much lower compared to the same period in the previous year.

Global copper demand is expected to increase significantly as copper plays a vital role in modern technologies. Rapid growth in artificial intelligence, clean energy systems such as electric vehicles and renewable power infrastructure, and defence-related manufacturing has increased reliance on copper because of its excellent electrical and thermal conductivity. These sectors require large quantities of copper for wiring, motors, batteries, and electronic components. As a result, projections indicate that by the year 2040, global copper demand could rise by nearly 50%, making it one of the most strategically important industrial metals for future economic growth.

The United Nations Department of Economic and Social Affairs, through its World Economic Situation and Prospects 2026 report, has projected India’s GDP growth at 6.6% for the calendar year 2026. This projection positions India as the fastest-growing major economy globally despite ongoing international economic uncertainties. The growth outlook is supported by strong domestic consumption, sustained public investment, and supportive fiscal and monetary policies. Although slightly lower than the estimated growth rate for 2025, the projection reflects India’s resilience and capacity to maintain economic momentum amid slower global growth and weakening international trade conditions.