Current Affairs - Economy

In FY 2024–25, India achieved a record high in Foreign Direct Investment (FDI), securing a total of $81.04 billion. This represents a 14% increase from the previous fiscal year, highlighting India's growing appeal as a global investment destination. The surge was largely fueled by increased investments in the services and manufacturing sectors, with services alone seeing a 40.77% rise in FDI equity inflow. Key reforms in FDI policy, sector liberalization, and consistent economic growth have contributed to this milestone. The inflows were also geographically diverse, with states like Maharashtra, Karnataka, and Delhi leading the chart, and countries like Singapore, Mauritius, and the U.S. being top contributors.

The Indian government has retained the interest rate on Employees' Provident Fund (EPF) deposits at 8.25% for FY2024-25, as approved by the Ministry of Finance following the Central Board of Trustees’ recommendation. This rate matches the previous year’s rate, ensuring steady returns for over 7 crore EPFO subscribers. EPF is a mandatory retirement savings scheme where both employee and employer contribute 12% of the basic salary. Maintaining this attractive interest rate supports financial security for salaried employees and sustains confidence in EPF as a reliable long-term investment.

Fitch Ratings has raised India's medium-term GDP growth outlook to 6.4% till FY2026, up from its earlier estimate of 6.2%. This upward revision is primarily attributed to an increase in labour force participation, reflecting structural improvements in India’s employment landscape. The update sets India apart from many other emerging markets, whose growth forecasts have been revised downward. While some concerns remain regarding slower labour productivity growth, Fitch believes India’s Total Factor Productivity will stabilize at 1.5%. The revision underscores India's post-pandemic resilience and positions it as a strong performer in the global economic landscape.

Morgan Stanley has updated its GDP growth projection for India for the fiscal year 2026 to 6.2%, an adjustment from its earlier forecast of 6.3%. This revision reflects optimism fueled by robust domestic demand, supportive policy measures, and a more favourable global trade environment due to easing tensions between the US and China. These factors are expected to improve external demand for Indian exports. Additionally, the Reserve Bank of India is anticipated to maintain a growth-supportive stance by implementing further monetary easing, with two projected rate cuts of 25 basis points each. These combined elements underpin the improved outlook.

India is expected to become the largest producer of potatoes globally by 2050, according to experts from the International Potato Centre (CIP). Currently producing about 60 million tonnes annually, India’s potato output is projected to increase to 100 million tonnes by 2050. This growth is driven by scientific innovations, strategic partnerships, government agricultural reforms, and sustained investments in research and food security. Potatoes and other tuber crops play a vital role in climate resilience, nutrition, and rural development, making India’s rise in potato production significant for its economic and social progress.