Current Affairs - Economy

India's foreign direct investment (FDI) saw a notable rise in April 2025, reaching $8.8 billion, which represents a 23% increase compared to the same period in the previous year. This growth contributed positively to the Reserve Bank of India's foreign exchange reserves, even though other external inflows like non-resident deposits showed a slowdown. The resilience of India’s external sector, backed by strong FDI and external commercial borrowings, played a key role in strengthening forex reserves, which stood at $698.95 billion in June. The 22% figure directly quantifies the FDI inflow growth year-over-year.

India’s coffee exports have experienced a substantial 125% growth over the past decade, rising from $800 million in 2014–15 to $1.8 billion in 2024–25. This impressive increase is a result of the Coffee Board of India’s targeted strategies, including digital transformation, promotion of value-added products, and support for sustainable farming. The introduction of financial incentives and machinery subsidies further empowered exporters, helping to boost output and quality. Additionally, India has expanded its presence in international markets, with Europe, the Middle East, and East Asia emerging as key destinations. This growth underscores India's evolving role in the global coffee trade.

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.