Current Affairs - Economy

India ranks as the 3rd largest start-up ecosystem in the world, with more than 100 unicorns, which highlights the country’s strong entrepreneurial culture. This achievement is further reinforced by the inauguration of the CSIR Innovation Complex (CSIR-IC) in Mumbai by Union Minister Jitendra Singh. The complex serves as a hub for start-up incubation and includes advanced infrastructure to support the growth of start-ups. Additionally, the event featured 50 technology transfers to start-ups, MSMEs, and institutions, encouraging further innovation and development in the sector.

The Union Cabinet approved a significant ₹11,440 crore revival package for Rashtriya Ispat Nigam Limited (RINL), also known as Vizag Steel, to address its financial challenges. The package includes ₹10,300 crore as equity capital and conversion of ₹1,140 crore in working capital loans into preference shares. The revival plan aims to stabilize RINL's operations, improve steel production, and secure its long-term sustainability by modernizing the plant and ensuring a steady supply of raw materials.

The World Bank projects India's economic growth rate at 6.7% for the next two fiscal years (2025–2027), reflecting an increase from the current fiscal year’s growth rate of 6.5%. This solidifies India’s position as the fastest-growing major economy, especially in contrast to a global GDP growth rate of 2.7%. While China’s growth is expected to slow to 4% next year, India's robust performance highlights its resilience and potential in the global economic landscape.

Retail inflation in December 2024 stood at 5.22%, a four-month low, reflecting a positive trend in the country’s economic stability. This decline from November’s 5.48% was mainly due to easing food prices, with food inflation dropping from 9.04% to 8.39%. Rural and urban inflation rates also showed improvement, easing to 5.76% and 4.58%, respectively. The RBI uses such Consumer Price Index (CPI) data to guide its monetary policy, aiming to maintain inflation within a target range of 4% ±2%. These figures are significant indicators of the economy's health and help in planning fiscal policies.

India’s factory output, as indicated by the Index of Industrial Production (IIP), rose by 5.2% in November 2024, the highest growth rate in six months. This increase was driven by favourable base effects, seasonal demand during the festive period, and notable improvements in manufacturing, capital goods, and consumer durables. The cumulative industrial growth for April-November 2024 was recorded at 4.1%.