Current Affairs - Economy

The Employees’ Provident Fund Organisation (EPFO) has raised the auto-settlement limit for advance claims from Rs 1 lakh to Rs 5 lakh. This initiative aims to facilitate faster access to funds for EPF subscribers within just 3 days. Initially introduced during the COVID-19 pandemic, the auto-settlement system was designed to address urgent financial needs such as medical emergencies, education, housing, or marriage. By increasing the limit, EPFO ensures that more substantial financial support can be provided quickly, enhancing the overall effectiveness of the provident fund as a social security mechanism for employees in times of need.

The RBI data clearly shows credit card spending in May 2025 grew by 14.5% year-on-year to reach ₹1.89 trillion, supported by 760,000 new card issuances. This growth reflects increasing digital transactions and consumer confidence. While other percentages appear in the context of individual bank performances (like HDFC's 25% growth), the overall industry growth figure was specifically 14.5%.

S&P Global Ratings has revised India’s GDP growth forecast for FY26 to 6.5%, reflecting a strong vote of confidence in the country’s economic fundamentals. The upgraded forecast is supported by several favourable conditions, including the expectation of a normal monsoon, which is vital for agricultural productivity and rural demand. Additionally, lower global crude oil prices are expected to benefit India’s import-heavy energy sector by reducing costs and easing inflation. Anticipated monetary policy easing by the Reserve Bank of India, along with income tax concessions, are also projected to stimulate investment and consumption. Despite global uncertainties, India’s outlook remains robust.

India ranks 13th globally in online investment-related search interest, as per the BrokerChooser report. The ranking is based on monthly Google search volumes per capita and reflects a rising trend of digital investment curiosity in India, especially among younger demographics. With 2,629 monthly searches per million people, India shows a growing appetite for financial literacy and wealth creation through digital platforms. Stock-related queries top the list, followed by forex and cryptocurrency. Despite traditional preferences for gold and real estate, modern investment channels—bolstered by fintech apps and financial influencers—are shaping the country’s evolving investment behaviour and curiosity landscape.

India’s core sector growth slowed significantly to 0.7% in May 2025, representing the weakest expansion in the last nine months. This decline was driven by contractions in critical sectors such as crude oil, natural gas, fertilisers, and electricity. The Index of Eight Core Industries (ICI), which tracks these sectors and contributes about 40% to the broader Index of Industrial Production (IIP), serves as a vital gauge of economic momentum. The sharp deceleration follows a prior month of sluggish performance, highlighting underlying stress in industrial output. This downtrend could impact overall GDP growth and signal a need for policy attention.