Current Affairs - Economy

The OECD study highlights that accelerated climate action could result in a 0.2% increase in global GDP by 2040, compared to current policies. Well-designed climate policies, which focus on enhancing productivity and fostering innovation, have the potential to significantly drive economic growth. This boost in GDP is equivalent to the size of Sweden’s economy, illustrating the positive economic impact of addressing climate change. Conversely, unclear climate policies could have the opposite effect, potentially reducing GDP by 0.75% by 2030.

S&P Global has revised India's GDP growth forecast for FY26 to 6.5%, down by 20 basis points from the earlier estimate of 6.7%. The revised forecast takes into account assumptions such as stable commodity prices and a normal monsoon. The report highlights key factors such as cooling food inflation, tax benefits from the FY26 Budget, and lower borrowing costs that are expected to support domestic consumption and economic activity. Despite global trade uncertainties, India's services exports to the US are anticipated to remain resilient.

The Indian government has decided to lift the 20% export duty on onions effective from April 1, 2025, in order to support farmers, especially as the rabi season’s supply improves. Despite previous export restrictions, onion exports for FY 2023-24 and 2024-25 (until March 18) showed positive results. The policy shift comes after a significant drop in mandi prices (39%) and retail prices (10%) over the past month, which impacted the onion market, prompting the government to take action to stabilize prices and support farmers.

The Reserve Bank of India recently conducted the 6th round of the Remittances Survey for the year 2023-24. This survey shows a significant change in the sources of remittances, with advanced economies like the US and the UK now contributing more compared to Gulf nations. It also highlights factors such as improved job opportunities in these countries and a decline in demand for low-skilled labour in Gulf countries, leading to a shift in migration patterns and remittance sources.

India's bioeconomy has reached a value of $165 billion, as stated by Dr. Jitendra Singh. This growth is attributed to the expansion of 10,000 biotech startups. Additionally, the launch of a global mentoring initiative for biotech startups is part of ongoing efforts to boost this sector. The value reflects a significant milestone in India's economic and technological advancement in biotechnology.