Current Affairs - Economy

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.

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.