Current Affairs - Economy

India’s total forex reserves reached a historic high of $725.727 Billion for the week ended February 13. This significant milestone reflects strong macroeconomic stability and effective currency management by the Reserve Bank of India. The surge was primarily driven by an increase in Foreign Currency Assets (FCA), which stood at $573.603 billion, and a substantial rise in gold reserves, which reached $128.466 billion. Additionally, Special Drawing Rights (SDRs) contributed to the overall reserves. The record level enhances India’s external sector strength, supports currency stability, and provides a strong buffer against global economic volatility and financial uncertainties.

Reliance announced a ₹10 trillion investment in artificial intelligence to develop sovereign compute infrastructure across India. The plan includes building multi-gigawatt AI data centres, deploying edge-compute layers integrated with telecom networks, and delivering affordable AI services nationwide. A major facility is under development in Jamnagar, with phased capacity expansion planned. The initiative emphasises reducing dependence on foreign cloud providers and ensuring national data security. Supported by green energy projects, the investment aligns with long-term goals of strategic resilience, digital self-reliance, and scalable AI adoption across industries and government services.

India’s eight core industries recorded a growth rate of 4% in January 2026, reflecting a moderation compared to the revised 4.7% growth in December 2025. The Index of Core Industries, which tracks coal, crude oil, natural gas, refinery products, fertilisers, steel, cement, and electricity, serves as a key indicator of industrial momentum. While sectors like steel and cement continued to show strong performance due to sustained infrastructure and construction activities, others experienced slower growth or contraction. Despite the slowdown in core sectors, overall industrial production remained strong during the period.

The Reserve Bank of India has mandated that a Unique Transaction Identifier (UTI) must be used for all over-the-counter (OTC) derivatives transactions beginning January 1, 2027. This requirement applies to rupee interest rate derivatives, foreign currency derivatives, credit derivatives, and certain government securities contracts. The UTI, a globally recognised tracking code, will uniquely identify each transaction, reduce duplication in reporting, and improve transparency. By introducing this mandate, the RBI aims to strengthen regulatory oversight, enhance systemic risk monitoring, improve data accuracy, and align India’s OTC derivatives reporting framework with global financial market standards.

The latest survey conducted by the Department of Financial Services highlights that 57% of respondents prefer UPI as their primary payment method, making it the most favoured transaction mode in India. This surpasses cash, which stands at 38%. The widespread adoption is driven by instant fund transfers, ease of use, and attractive cashback incentives. A significant portion of users, particularly those aged 18–25, perform multiple digital transactions daily. Additionally, 94% of small merchants now accept UPI, reflecting its deep penetration and the success of government-backed digital payment initiatives.