Current Affairs - Economy

In September 2025, India’s Infrastructure Output, measured by the Index of Eight Core Industries (ICI), registered a growth rate of 3% year-on-year. This indicates moderate expansion in the infrastructure sector, driven by positive growth in key areas such as steel, cement, electricity, and fertilizers. Although the growth rate was lower than August’s revised figure of 6.5%, it still reflects ongoing momentum in core industrial activity, contributing to the overall economic stability and infrastructural development of the country.

India’s Female Labour Force Participation Rate (FLFPR) has risen significantly from 23% in 2017–18 to 42% in 2023–24. This increase reflects a major improvement in gender inclusion and economic participation for women in the country. Over the past decade, India recorded the sharpest rise in women’s labour force participation among BRICS nations (Brazil, Russia, India, China, South Africa). The growth highlights ongoing social and economic reforms, initiatives to promote women’s employment, and broader efforts to create an inclusive workforce that supports sustainable economic development and reduces gender disparities in the labour market.

The International Monetary Fund (IMF) has revised India’s GDP growth forecast for 2025 upward to 6.6%, reflecting stronger-than-expected economic performance in the first quarter of the year. This revision accounts for robust domestic demand in consumption and services, policy continuity, and infrastructure investments, which helped offset the impact of newly imposed US tariffs. Despite external trade pressures, India’s economy maintained momentum due to these factors. However, the IMF has slightly reduced the 2026 forecast to 6.2%, citing potential delayed effects of tariffs, global economic uncertainties, and risks related to trade tensions.

India’s retail inflation dropped to 1.54% in September 2025, the lowest level recorded in the past eight years. This decline from 2.07% in August 2025 was driven by easing food prices and sustained deflation in essential food items. Rural inflation was recorded at 1.07%, while urban inflation stood at 2.04%, reflecting a broad-based moderation across segments. Food inflation remained negative for the fourth consecutive month at -2.28%, the lowest since December 2018. This sharp decline indicates improved supply conditions, stable fuel prices, and effective monetary and fiscal measures to control price pressures.

The National Agriculture Market (e-NAM) platform expanded its coverage by adding 9 new agricultural commodities, increasing the total tradable items to 247. The newly added commodities include Green Tea, Tea, Aswagandha Dry Roots, Mustard Oil, Lavender Oil, Mentha Oil, Virgin Olive Oil, Lavender Dried Flower, and Broken Rice. This expansion strengthens India’s digital agriculture ecosystem by providing farmers and traders greater access to markets, ensuring quality-based pricing, and reducing dependency on intermediaries. The Directorate of Marketing and Inspection (DMI) has set standardized quality parameters for these commodities, promoting transparency and fair trade across the platform.