Current Affairs - Economy

In FY 2025–26, China emerged as India’s top trading partner, surpassing the United States after four years. The total bilateral trade between India and China reached $151.1 billion, reflecting strong economic engagement despite geopolitical tensions. However, this growth also highlighted a significant trade imbalance, with India’s imports from China far exceeding its exports. The surge in imports, especially in sectors like electronics and machinery, contributed to a record-high trade deficit. This development underscores the evolving dynamics of global trade and India’s increasing reliance on Chinese goods.

Patent applications in India witnessed a remarkable growth of 30.2% in FY 2025–26, reaching a record high of 1,43,729 filings. This surge reflects the country’s increasing emphasis on innovation, research, and the protection of intellectual property rights. A significant share of these filings came from domestic applicants, indicating a shift toward indigenous innovation. Government initiatives such as reduced filing fees, faster examination processes, and support for startups have played a key role in this growth. The trend highlights India’s emergence as a global innovation hub and its steady progress in strengthening its intellectual property ecosystem.

India is scheduled to sign a Free Trade Agreement with New Zealand on April 27, 2026, aiming to strengthen bilateral economic ties and enhance market access. The agreement includes provisions for zero-duty access on Indian exports and reduced tariffs on most New Zealand goods, excluding sensitive sectors like dairy and certain agricultural products. It also facilitates mobility by allowing skilled Indian professionals to work temporarily in New Zealand. With targets to significantly boost trade and investment, the FTA represents a major step in expanding India’s global trade partnerships and economic cooperation.

In April 2026, the Government of Maharashtra partnered with NICDC Logistics Data Services Limited to modernise and digitise its logistics ecosystem through the Unified Logistics Interface Platform (ULIP). The initiative focuses on improving efficiency, transparency, and real-time tracking within the logistics value chain, especially benefiting MSMEs and small exporters. Various digital tools such as the Logistics Data Bank, Koyla Shakti dashboard, and Track Your Transport system are part of this transformation. By integrating multiple systems and data sources, the project aims to streamline operations, reduce costs, and enhance the overall competitiveness of the state’s logistics infrastructure.

In March 2026, India’s unemployment rate rose to 5.1%, reaching a five-month high. This increase was mainly attributed to rising joblessness in urban areas, where unemployment was significantly higher compared to rural regions. The data also indicated a decline in the Worker Population Ratio, reflecting reduced employment levels. Youth unemployment showed a noticeable rise, particularly among young women. Additionally, the Labour Force Participation Rate declined, highlighting reduced engagement in economic activity. These trends provide insights into labor market challenges and are crucial for policymakers in assessing economic conditions and planning corrective measures.