Current Affairs - Economy

India’s electronics exports surged by 47% year-on-year in Q1 FY26, reaching $12.4 billion compared to $8.43 billion in the same quarter of the previous year. This remarkable growth was primarily driven by mobile phone exports, which alone rose 55% to $7.6 billion, supported by production-linked incentive (PLI) schemes and global manufacturers increasingly using India as an export hub. Non-mobile electronics also showed strong performance with a 37% increase, driven by solar modules, networking equipment, and electronic components. This robust momentum underscores India’s growing position as a global electronics manufacturing powerhouse with diversified export strengths.

Life Insurance Corporation of India (LIC) recorded a 5% year-on-year increase in net profit for Q1 FY26, reaching ₹10,987 crore compared to ₹10,461 crore in the same quarter last year. This growth came despite a slowdown in new policy sales due to regulatory changes, with strong renewal premiums supporting income stability. LIC also reported a 5% rise in net premium income and a significant improvement in asset quality, with gross NPAs falling by 21% and net NPAs by 36%. The solvency ratio rose to 2.17%, underscoring LIC’s enhanced financial strength and its dominant market position in both retail and group segments.

The Housing Price Index (HPI) for 13 major Indian cities reached 132 in March 2025, reflecting an 8-point increase from 124 in March 2024. This rise indicates a phase of stabilisation in India’s residential real estate market following several quarters of rapid price appreciation. While prices showed no change from February 2025, the annual growth suggests a healthy consolidation period driven by cautious buyer sentiment and supply-side adjustments. The trend is seen as beneficial for long-term market sustainability, supported by factors like recent interest rate cuts, growing incomes, and strong underlying demand fundamentals in urban centres.

India’s Business Confidence Index (BCI) reached 149.4 in April–June 2024–25, marking a notable rise from 139.3 in the previous quarter. This data, sourced from the National Council of Applied Economic Research (NCAER) Business Expectations Survey, is based on four core components assessing various aspects of business sentiment. Over 60% of respondents expressed positive views across all measured areas, reflecting a broad-based improvement in outlook. The increase in the BCI suggests growing optimism in the Indian business environment, likely driven by favourable economic conditions, policy support, and improved market expectations across sectors.

HDFC Capital Advisors partnered with the International Finance Corporation (IFC) to launch the $1 billion H-DREAM Fund, aimed at financing green affordable housing projects in India. IFC, a member of the World Bank Group, has invested $150 million as the anchor, with the remaining $850 million expected from other institutional investors. Managed by HDFC Capital, the fund focuses on promoting sustainable construction practices while addressing India’s housing shortage. By targeting affordable and mid-income housing that meets green building norms, the initiative supports climate resilience, energy efficiency, and urban development in line with the United Nations Sustainable Development Goals.