Current Affairs - Economy

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.

According to the Reserve Bank of India (RBI) Remittances Survey for 2023-24, the United States has overtaken the United Arab Emirates (UAE) as India's largest source of remittances. The US contributed 27.7% of total remittances to India, surpassing the UAE's contribution of 19.2%. This shift is attributed to an increase in skilled professionals migrating to advanced economies, leading to higher remittance inflows from countries like the US, the UK, Canada, and Australia, while Gulf Cooperation Council (GCC) nations' share has decreased.

In February 2025, India's Wholesale Price Index (WPI) inflation stood at 2.38%. This increase was driven by higher prices in food products, textiles, and manufacturing. Additionally, the WPI Food Index dropped, and food inflation declined from 7.47% to 5.94%. The Fuel & Power index rose by 2.12%, while Primary Articles decreased by 1.74%, and Manufactured Products saw a 0.42% increase month-over-month.

According to Morgan Stanley, India’s GDP is projected to reach $5.7 trillion by 2028, making it the third-largest economy globally, surpassing Germany and Japan. Currently, India is ranked fifth but is expected to overtake Japan by 2026 to become the fourth-largest economy. This growth is driven by strong macroeconomic policies, improved infrastructure, and a growing consumer market, which will increase India’s share of global GDP from 3.5% in 2023 to 4.5% in 2029.