Current Affairs - Economy

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.

India successfully met its fiscal deficit target of 4.8% of GDP for the financial year 2024–25, as reported by the Controller General of Accounts (CGA). This is a significant fiscal achievement, especially in light of shortfalls in revenue collections due to underperformance in miscellaneous capital receipts and a slight dip in income tax revenue. Despite these challenges, the government kept revenue expenditure under control and exceeded capital expenditure estimates. The fiscal deficit, amounting to ₹15.77 lakh crore, aligns with the revised budget target and reflects the government's commitment to fiscal discipline and long-term consolidation as outlined in the Union Budget 2024–25.

Crisil has forecasted India’s GDP growth at 6.5% for the fiscal year 2026, attributing this projection to a combination of strengthening domestic consumption, easing inflation, expected interest rate cuts by the RBI, and a favourable monsoon. These factors are expected to stimulate demand, particularly in rural areas, and bolster growth across key sectors such as agriculture, industry, and infrastructure. In addition, stable oil prices are projected to support macroeconomic stability by easing the current account deficit and improving corporate margins. Together, these conditions form the basis of Crisil’s cautiously optimistic outlook for India’s economic trajectory in FY26.

In FY 2024-25, India achieved a 7.9% reduction in coal imports, bringing the total volume down to 243.62 million tonnes from 264.53 million tonnes in the previous year. This significant decline contributed to foreign exchange savings of approximately $7.93 billion, underlining the country’s efforts toward energy self-reliance. The drop is a result of strategic government measures, including the expansion of domestic coal production through commercial mining and focused programs like Mission Coking Coal. This shift not only reduced dependency on foreign coal but also supported the broader goal of a self-reliant and energy-secure India under the "Viksit Bharat" initiative.