Current Affairs - Economy

India secured a Global Rank 3 in start-ups over the past decade, a significant achievement driven by various government initiatives. This growth was supported by a ₹20,000 crore allocation for R&D and innovation in the Union Budget 2025-26, aimed at boosting deep-tech sectors. Additionally, patent grants have increased by 17 times since 2014, and India made a remarkable improvement in its Global Innovation Index ranking, rising from 81st to 39th.

NITI Aayog, in collaboration with TransUnion CIBIL, Women Entrepreneurship Platform (WEP), and MicroSave Consulting (MSC), launched the report titled “From Borrowers to Builders: Women’s Role in India’s Financial Growth Story.” The report highlights the increasing participation of women in India's financial growth, with significant improvements such as a 42% increase in women monitoring their credit and a 14% rise in women's share in business loan origination since 2019. This reflects the growing influence of women in shaping India’s economic future.

The Indian tech industry is projected to experience revenue growth of 5.1%, reaching $282.6 billion in FY 2025-26. This growth is driven by both domestic and export revenues, with domestic revenue expected to grow faster at 7%. However, despite this positive growth, concerns about job growth remain due to AI adoption, as many companies are prioritizing technology spending over hiring new employees. The emphasis on AI and upskilling highlights the evolving nature of the industry and its future trajectory.

The Central Board of Trustees (CBT) of the Employees' Provident Fund Organisation (EPFO) decided to retain the interest rate at 8.25% for Provident Fund deposits for the financial year 2024-25. Despite trade union representatives advocating for a higher rate, the government opted to maintain the current rate, emphasizing its stability and competitiveness compared to other fixed-income investment options. This rate continues to offer attractive returns, particularly due to the tax-free nature of the interest, making it a preferred investment for salaried individuals.

The State Bank of India (SBI) has revised India's GDP growth forecast for FY25 to 6.3%, down from earlier estimates. This adjustment reflects a slowdown in key economic sectors such as lending, manufacturing, and aggregate demand. While private consumption remains strong at 7.3%, the weakening growth in investment and the manufacturing sector contributed to this lowered projection. This revision places India's growth slightly below the National Statistical Office's forecast of 6.4%, signalling concerns about sustaining economic momentum.