Current Affairs - Economy

The Maldives has unveiled plans to establish the Maldives International Financial Centre (MIFC) in its capital, Malé, with a massive $8.8 billion investment. This ambitious project, in collaboration with the Qatari-owned MBS Global Investments, is expected to be completed by 2030. Designed as a sustainable financial-free zone, the MIFC will serve as a hub for global financial institutions, fintech startups, and remote-working professionals. The initiative reflects the Maldives' strategic move to diversify its economy beyond tourism and position itself as a prominent financial player in the Indian Ocean region.

In the financial year 2024-25, India’s non-petroleum exports reached a record 374.08 billion dollars, marking a 6% increase from the previous year. This growth contributed significantly to India’s overall export performance, which hit an all-time high of 824.9 billion dollars. The rise in non-petroleum exports reflects improved competitiveness and diversification in India’s export basket, particularly in manufactured goods and services. This 6% growth is a positive indicator for India’s external sector, helping to reduce the trade deficit and support overall economic momentum amid global challenges in trade and supply chains.

The Union Cabinet, under the leadership of Prime Minister Narendra Modi and the Cabinet Committee on Economic Affairs, has approved the Fair and Remunerative Price (FRP) for sugarcane at Rs. 355 per quintal for the 2025–26 season. This price is set for a basic recovery rate of 10.25 per cent. The FRP is the minimum price that sugar mills are required to pay to sugarcane farmers and plays a crucial role in protecting farmer interests, especially in a country like India, which is the world's largest producer and consumer of sugar.

India is set to introduce a significant policy reform by allowing foreign companies to acquire up to a 49% stake in its nuclear power sector. This marks a major shift in one of the country’s most tightly controlled industries, aimed at scaling up nuclear energy as part of its clean energy transition. The move is intended to reduce dependency on coal and meet carbon emission reduction targets. To enable this, amendments to the Civil Liability for Nuclear Damage Act, 2010 and the Atomic Energy Act, 1960 are being proposed, with expected discussion and passage in the Monsoon Session of Parliament in July 2025.

The World Bank has adjusted its projection for India’s GDP growth for the fiscal year 2025-26, lowering it from an earlier estimate of 6.7% to 6.3%. This downgrade is attributed to various factors, including weaker private investment and a reduction in public capital expenditure. Additionally, broader regional economic struggles in South Asia, influenced by political and financial instability in neighbouring countries, have contributed to this more cautious outlook. The revision reflects growing concerns about both global and domestic economic environments impacting India’s near-term growth potential.