Current Affairs - Economy

In July 2025, India’s infrastructure output, measured by the Index of Eight Core Industries (ICI), recorded a growth of 2% compared to the same month in the previous year. This performance was largely driven by strong growth in steel and cement sectors, which posted double-digit increases of 12.8% and 11.7% respectively. Fertilizer production also contributed positively with a rise of 2%, while electricity generation showed a smaller increase of 0.5%. The 2% growth reflects resilience in core industries despite mixed performances across sectors, highlighting steel and cement as major drivers of infrastructure development during this period.

India’s marine fish production in 2023–24 reached 44.95 lakh tonnes, marking a significant increase from 34.76 lakh tonnes in 2020–21, with an impressive average annual growth rate of 8.9%. This surge is attributed to the government’s dual strategy of sustainable fisheries development and climate-resilient practices under initiatives such as the PM Matsya Sampada Yojana (PMMSY) and the National Innovation in Climate Resilient Agriculture (NICRA). These programs focus on ecological restoration, climate adaptation, and infrastructure support for coastal communities. The achievement not only highlights India’s growing fishery sector but also underscores its commitment to sustainability and long-term resilience against climate impacts.

In July 2025, India’s unemployment rate fell to 5.2% for individuals aged 15 years and above, reflecting an improvement compared to 5.6% in June 2025. This decline indicated a positive trend in employment generation across the country. The data also revealed gender-specific figures, with the unemployment rate for females at 5.1% and males at 5.3%. Regionally, rural areas recorded a lower rate of 4.8%, significantly better than the urban unemployment rate of 6.8%. Such statistics provide insights into labor market dynamics and help policymakers design targeted interventions to sustain job growth and reduce regional disparities.

As of August 8, 2025, India’s foreign exchange reserves surged by $4.74 billion to reach $693.62 billion. This increase was driven by gains in foreign currency assets, gold reserves, Special Drawing Rights (SDRs), and India’s reserve position with the International Monetary Fund (IMF). Foreign currency assets alone rose by $2.37 billion, while gold reserves added $2.16 billion. The rise highlights India’s strong external sector fundamentals, with the reserves positioned close to their all-time high of $704.885 billion recorded in September 2024. Such robust reserve levels enhance India’s ability to cushion external shocks, stabilise the rupee, and maintain financial resilience.

In July 2025, India’s Wholesale Price Index (WPI) inflation stood at -0.58%, marking the second consecutive month of deflation in wholesale prices. This decline was largely influenced by falling prices of food articles, mineral oils, crude petroleum, natural gas, and basic metals. WPI inflation reflects the overall change in prices at the wholesale level, differentiating it from the Consumer Price Index (CPI), which measures changes at the consumer level. The negative WPI figure indicates easing cost pressures for businesses, potentially impacting input costs, supply chains, and the broader inflation trajectory of the economy in the coming months.