Current Affairs - Economy

India recently sent its first-ever sea shipment of premium Sangola and Bhagwa pomegranates to Australia, facilitated by APEDA. The shipment, weighing 5.7 MT from Maharashtra’s Solapur region, arrived in Sydney in January 2025. This marked a significant milestone in India's fruit export sector. The positive market response, coupled with India's ANARNET traceability system, helped enhance export credibility. The initiative also led to a 29% year-on-year increase in fresh fruit exports, underlining the growing demand for Indian produce in global markets.

55% of urban consumers reported unchanged income in January 2025, marking the highest such figure in 11 years. This reflects a stagnant income trend, which may contribute to weakening economic sentiment and reduced consumer spending, particularly on non-essential items. The report highlights broader economic concerns, including a decline in job opportunities and reduced optimism about income growth. This stagnation may impact overall economic growth and consumer confidence, suggesting the need for targeted government interventions to stimulate the economy.

India's industrial output growth slowed to 3.2% in December 2024, compared to 5% in November. This slowdown was primarily driven by weaker performance in the manufacturing and mining sectors. While the manufacturing sector grew by 3% and mining by 2.6%, electricity generation showed a positive performance with a 6.2% increase. Despite these sectoral variations, the overall industrial output growth decelerated, raising concerns for the nation's economic momentum as it headed into 2025.

U.S. President Donald Trump has announced a 25% tariff on all steel and aluminium imports, effective March 4, 2025, with no exemptions for key exporters like Canada, Brazil, Mexico, and South Korea. The decision aims to boost domestic production and counter foreign dumping but has sparked a global backlash. Countries such as Canada and the European Union have condemned the move and are preparing retaliatory measures. This tariff reinstates Trump's earlier protectionist trade policies and could lead to heightened trade tensions and economic uncertainty in global markets.

Uttar Pradesh is formulating a new leather and footwear policy to enhance exports, provide financial aid, and introduce technological upgrades. The initiative aims to double the state’s ₹20,000 crore leather industry within five years, focusing on key hubs such as Kanpur, Agra, Unnao, and Noida. This policy aligns with the Union Budget 2025-26, which sets a target of $50 billion in Indian leather exports by 2030. By implementing this strategy, Uttar Pradesh seeks to strengthen its position as a major contributor to the country’s leather sector.