Current Affairs - Economy

The Indian tech industry is projected to experience revenue growth of 5.1%, reaching $282.6 billion in FY 2025-26. This growth is driven by both domestic and export revenues, with domestic revenue expected to grow faster at 7%. However, despite this positive growth, concerns about job growth remain due to AI adoption, as many companies are prioritizing technology spending over hiring new employees. The emphasis on AI and upskilling highlights the evolving nature of the industry and its future trajectory.

The Central Board of Trustees (CBT) of the Employees' Provident Fund Organisation (EPFO) decided to retain the interest rate at 8.25% for Provident Fund deposits for the financial year 2024-25. Despite trade union representatives advocating for a higher rate, the government opted to maintain the current rate, emphasizing its stability and competitiveness compared to other fixed-income investment options. This rate continues to offer attractive returns, particularly due to the tax-free nature of the interest, making it a preferred investment for salaried individuals.

The State Bank of India (SBI) has revised India's GDP growth forecast for FY25 to 6.3%, down from earlier estimates. This adjustment reflects a slowdown in key economic sectors such as lending, manufacturing, and aggregate demand. While private consumption remains strong at 7.3%, the weakening growth in investment and the manufacturing sector contributed to this lowered projection. This revision places India's growth slightly below the National Statistical Office's forecast of 6.4%, signalling concerns about sustaining economic momentum.

According to Moody's Analytics, India's GDP growth is expected to slow to 6.4% in 2025, down from 6.6% in 2024. This forecast was shared in the report titled 'Asia-Pacific Outlook: Chaos Ahead.' The same growth rate of 6.4% is projected for India in both 2025 and 2026, indicating a period of moderate growth. The report also projected a slowdown in China's GDP growth, but India's expected performance remains relatively stable within the forecasted period.

The strategic partnership between India and Qatar, has been elevated to focus on areas like trade, energy, investments, technology, and more. Two significant Memorandums of Understanding (MoUs) were signed, one aimed at enhancing their strategic partnership and the other concerning tax cooperation, specifically avoiding double taxation and preventing fiscal evasion. This partnership reflects Qatar's crucial role in strengthening bilateral ties with India.