Current Affairs - Economy

The Asian Development Bank (ADB) has provided significant financial support to Assam's renewable energy initiatives by approving a $434.25 million loan. This funding will facilitate the construction of a 500 MW grid-connected solar photovoltaic facility in the Karbi Anglong district, substantially enhancing the state's renewable energy capacity. The project includes a battery energy storage system to ensure grid stability and meet peak power demands. By promoting sustainable energy development, ADB's loan aligns with India's goals of reducing carbon emissions and increasing energy security. This collaboration demonstrates ADB's commitment to supporting environmentally friendly infrastructure projects in developing regions.

The International Monetary Fund (IMF) has retained India’s GDP growth rate at 7% for the current fiscal year ending March 31, 2025. This projection highlights India's robust economic performance amidst global uncertainties. While the growth rate for the following fiscal year (2025-26) is expected to moderate to 6.5%, the current year’s projection reflects strong economic activity. In contrast, global growth is set at 3.2% for 2024, and the U.S. economy's growth rate was revised upward to 2.8%.

The Indian government initially reduced the export tax on parboiled rice from 20% to 10% before revoking it entirely to boost exports. This reduction aimed to enhance India's competitiveness in the global market, particularly against major rice-exporting countries like Pakistan, Thailand, and Vietnam. By eliminating the tax, India seeks to capitalize on surging inventories and a predicted bumper crop, increasing rice shipments and strengthening its position in the international rice trade. This move reflects the government's efforts to promote economic growth and support the agricultural sector.

In August 2024, the Employees' Provident Fund Organisation (EPFO) reported a 9% year-on-year growth in employment opportunities, highlighting the expanding job market in India. EPFO added 18.53 lakh net members during this period, with 9.30 lakh new enrollments, including 2.53 lakh female members. These numbers reflect a steady increase in employment, especially when compared to previous months such as July, June, and May. The growth rate underscores the positive impact of EPFO's efforts to improve job accessibility across sectors.

The IMF report projects that global public debt will reach 93% of global GDP in 2024 and approach 100% by 2030. This significant increase in debt levels raises concerns about sovereign yield volatility and debt risks. To mitigate these risks, the IMF recommends that countries implement fiscal adjustments between 3.0% and 4.5% of GDP. Additionally, the report introduces a "debt-at-risk" method to assess uncertainties in debt projections, estimating a potential surge to 115% of GDP by 2026 in a worst-case scenario. Effective management of debt levels is crucial for maintaining global economic stability.