Current Affairs - Economy

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.

The Index of Industrial Production (IIP) growth in April 2025 registered a slowdown to 2.7%, marking the lowest point in the past eight months. This figure is significant as it highlights a waning momentum in industrial activity, especially when compared to the last such low reading of 0.0% in August 2024. The slowdown is reflective of a broad-based weakening across sectors, including primary goods, infrastructure, mining, and electricity, suggesting challenges in both supply chains and demand conditions. Despite a strong showing in capital goods, the overall picture remains mixed and warrants close policy attention.