Current Affairs - Economy

The agreement involved a major collaboration between POSCO Group of South Korea and JSW Steel of India to establish a large integrated steel plant in Odisha. The project, valued at $7.3 billion, is a significant step toward boosting India’s steel production capacity. Both companies will hold equal stakes of 50 per cent in the joint venture, highlighting a balanced partnership. The plant is expected to produce 6 million tons of steel annually and will cover the entire production process at a single site. This initiative aligns with India’s long-term goal of increasing its steel production capacity under the National Steel Policy.

The projection highlights a growth range between 6.8% and the upper bound mentioned, indicating a steady expansion of the Indian economy despite global uncertainties such as oil price fluctuations and geopolitical tensions. It reflects confidence in domestic demand, investment activity, and financial sector stability. The estimate also aligns with moderate inflation and fiscal deficit levels, suggesting balanced macroeconomic conditions. Additionally, India’s increasing integration into global value chains and resilience of key sectors like banking and services contribute to maintaining this growth trajectory over the financial year.

In FY 2025–26, China emerged as India’s top trading partner, surpassing the United States after four years. The total bilateral trade between India and China reached $151.1 billion, reflecting strong economic engagement despite geopolitical tensions. However, this growth also highlighted a significant trade imbalance, with India’s imports from China far exceeding its exports. The surge in imports, especially in sectors like electronics and machinery, contributed to a record-high trade deficit. This development underscores the evolving dynamics of global trade and India’s increasing reliance on Chinese goods.

Patent applications in India witnessed a remarkable growth of 30.2% in FY 2025–26, reaching a record high of 1,43,729 filings. This surge reflects the country’s increasing emphasis on innovation, research, and the protection of intellectual property rights. A significant share of these filings came from domestic applicants, indicating a shift toward indigenous innovation. Government initiatives such as reduced filing fees, faster examination processes, and support for startups have played a key role in this growth. The trend highlights India’s emergence as a global innovation hub and its steady progress in strengthening its intellectual property ecosystem.

India is scheduled to sign a Free Trade Agreement with New Zealand on April 27, 2026, aiming to strengthen bilateral economic ties and enhance market access. The agreement includes provisions for zero-duty access on Indian exports and reduced tariffs on most New Zealand goods, excluding sensitive sectors like dairy and certain agricultural products. It also facilitates mobility by allowing skilled Indian professionals to work temporarily in New Zealand. With targets to significantly boost trade and investment, the FTA represents a major step in expanding India’s global trade partnerships and economic cooperation.