Current Affairs - Economy

Nomura has projected that India’s GDP growth will slow down to 6.2% in FY26, a slight decline from the 6.5% growth recorded in FY25 and the sharp 9.2% expansion in FY24. This forecast reflects concerns about weakening fundamental economic indicators such as sluggish automobile sales and slow bank credit growth, despite strong headline data like GST collections. The moderation signals a cautious outlook amid global uncertainties and an uneven domestic recovery, contrasting with the Reserve Bank of India’s steady 6.5% growth estimate for the same period.

Only 1.74% of ₹2,000 notes remain in circulation following the Reserve Bank of India’s withdrawal that began on May 19, 2023. This marks a significant reduction from the original value of ₹3.56 lakh crore to just ₹6,181 crore by May 31, 2025. The withdrawal process has been largely successful, with 98.26% of the currency returned. Citizens can still exchange or deposit these notes at 19 designated RBI Issue Offices or through India Post for credit into bank accounts. The move is part of a broader effort to phase out high-denomination currency and promote cleaner note practices in the economy.

In May 2025, India’s gross GST collections reached ₹2.01 lakh crore, marking a significant year-on-year increase. This figure represents a 16.4% rise over the ₹1.72 lakh crore collected in May 2024. The consistent rise in collections, with May being the second consecutive month to surpass the ₹2 lakh crore mark, reflects improved economic activity and compliance under the GST regime. The 16% figure underscores the substantial year-over-year growth and points to strengthening revenue mobilization by the government, which is vital for public spending and economic stability.

India’s first Artificial Intelligence Special Economic Zone (AI SEZ) is being developed in Nava Raipur, Chhattisgarh, with a ₹1,000 crore investment by RackBank Datacenters. This pioneering initiative aims to establish state-of-the-art infrastructure dedicated to AI research, development, and deployment, spanning a 6-acre campus with four high-capacity data centres. The project not only positions India as a forward-looking player in the global AI race but also promises to bring major tech tenants such as Google, OpenAI, Microsoft, and Meta. Additionally, it is expected to generate local employment and support digital growth across Indian states, while offering tax and regulatory incentives under the SEZ framework.

SEBI (Securities and Exchange Board of India) has implemented a major reform in the risk monitoring framework for the Futures & Options (F&O) segment by adopting a delta-based method for calculating Open Interest (OI). Unlike the earlier notional-value-based method, the delta-based approach better captures the actual risk exposure by considering the price sensitivity of options to the underlying asset. This shift enhances transparency, curbs manipulation, and improves the alignment of margin requirements with real market risks. It is a step toward aligning India’s derivatives regulation with global best practices and aims to modernize and strengthen the integrity of the capital markets.