Current Affairs - Economy

The Startup Conclave 2025 was inaugurated by Union Home Minister Amit Shah at Mahatma Mandir in Gandhinagar, Gujarat. The two-day event brought together over 1,000 startups, 5,000 innovators, 100 industry mentors, and 50+ venture capital funds from across India. Organised by the Gujarat State Education Department, the conclave showcased innovations in sectors like agriculture, defence, AI, clean tech, fintech, and healthcare. It also facilitated 50 MoUs and distribution of funding cheques and Letters of Intent to promising ventures. Hosting this conclave highlights Gujarat’s commitment to becoming a leading startup hub while aligning with national initiatives like Startup India, Digital India, and Aatmanirbhar Bharat.

India’s core industries registered a 6.3% year-on-year growth in August 2025, the highest in more than a year. This strong performance was driven by significant increases in steel (14.2%), coal (11.4%), cement (6.1%), and fertilizers (4.6%). Such growth highlights positive momentum in infrastructure and construction activity, key drivers of the economy. Although the cumulative growth for April–August 2025 stood at 2.8%, the August surge indicates improving industrial activity and resilience in core sectors. Sustained growth in these industries is vital for enhancing supply chains, boosting investment, and supporting India’s broader economic development goals.

The CAG report highlights the alarming increase in public debt among Indian states over the past decade. While several states have seen a significant rise in their debt-to-GSDP ratio, Punjab emerged with the highest figure at 40.35%. This indicates that Punjab’s debt burden, in proportion to its economic output, is more severe than other states. Nagaland followed with 37.15%, and West Bengal with 33.70%. Such high ratios raise concerns about fiscal sustainability, state finances, and the ability of governments to manage long-term liabilities while still investing in growth and development.

The India Shrimp Tariff Act, introduced by US Senators Bill Cassidy and Cindy Hyde-Smith, aims to protect Louisiana’s shrimp and catfish industries from the impact of cheap shrimp imports from India. Lawmakers argue that Indian shrimp has been “dumped” into the US market at very low prices, hurting local producers, processors, and related jobs. By imposing tariffs, the Act seeks to create a level playing field, ensure fair competition, and safeguard Gulf Coast seafood industries. While this move supports domestic producers, it could also heighten trade tensions between India and the US, potentially leading to disputes at the WTO.

Chabahar Port, located in Iran’s Sistan-Baluchistan region, is India’s only deep-sea port with direct open-ocean access outside the Strait of Hormuz. Developed under the 2016 Chabahar Agreement between India, Iran, and Afghanistan, it offers a vital trade route to Afghanistan and Central Asia, bypassing Pakistan. The port enhances India’s regional connectivity via the International North-South Transport Corridor (INSTC), supports humanitarian aid, and strengthens strategic presence in the Indian Ocean. It also counters China’s Gwadar Port and BRI influence, making it central to India’s economic and geopolitical ambitions despite challenges like US sanctions.