Current Affairs - Economy

India achieved a record total export value of $860.09 billion in the financial year 2025–26, reflecting a growth of 4.22% compared to the previous fiscal year. This increase was driven by both merchandise and services exports, with services showing notable growth. Despite the strong export performance, imports grew at a faster rate, resulting in a widened trade deficit. The export growth highlights India’s expanding global trade presence and diversification across sectors, while also indicating the need to manage rising imports to maintain a balanced trade position.

In April 2026, the International Monetary Fund (IMF) revised India’s GDP growth forecast for the financial year 2026–27 to 6.5%, reflecting a slight increase from its earlier estimate of 6.4% made in January. This upward revision was driven by strong economic performance in the previous fiscal year and improved global conditions, including reduced tariffs on Indian exports by the United States. The IMF also projected that India would sustain this growth rate into FY28. Despite global uncertainties and slower trade growth, India’s economy is expected to remain resilient among emerging markets.

30.2% represents the growth rate of patent filings in India for the fiscal year 2025-26 compared to the previous year. This significant increase reflects the country’s expanding innovation ecosystem and rising participation from domestic inventors. The total number of applications reached a record high, demonstrating consistent growth over the past decade. A large share of filings came from Indian innovators, indicating stronger research and development activities within the country. The trend also highlights improvements in intellectual property awareness, regulatory support, and the overall strengthening of India’s position in the global innovation landscape.

Utkarsh 2029 is the medium-term strategic framework introduced by the Reserve Bank of India to enhance and modernise the financial ecosystem. It outlines a structured plan covering a three-year period from April 2026 to March 2029. The framework includes initiatives such as modernisation of currency management, expansion of digital banking infrastructure, and improved financial inclusion through nationwide systems. It also focuses on technological advancements like Central Bank Digital Currency, Artificial Intelligence regulations, and global expansion of payment systems, building upon earlier strategies to ensure a more robust and efficient financial environment.

Moody projected India’s GDP growth rate for FY27 at 6%, revising it downward from the earlier estimate of 6.8%. This adjustment reflects concerns over rising geopolitical tensions in West Asia, which have disrupted energy supplies and led to increased fuel prices. As India relies heavily on imports for crude oil and LPG, these disruptions have contributed to inflationary pressures and weakened household consumption. Additionally, the slowdown is linked to reduced industrial activity and investment momentum, along with fiscal challenges faced by the government due to higher subsidy burdens and lower tax revenues.