Current Affairs - Economy

India's smartphone market has achieved significant growth, emerging as the second-largest globally by unit volume in Q3 2024. With a 15.5% share of global smartphone shipments, India trails only China's 22% market share. The country's smartphone market value also rose to 12.3%, driven by early festive sales, a 3% increase in shipments, and a 12% growth in market value. The average selling price of smartphones in India reached $294, indicating a shift toward premium devices, with brands like Samsung and Apple dominating the premium segment. India's large user base and growing demand for high-end devices position the country for continued growth in the smartphone market.

The Goods and Services Tax (GST) Compensation Cess is set to expire in March 2026, as decided by the GST Council. This cess was introduced to compensate states for revenue loss due to the implementation of GST and was extended till March 2026 to repay a ₹2.69 lakh crore loan taken during the COVID-19 pandemic. A Group of Ministers (GoM) has been formed to determine the taxation of luxury, sin, and demerit goods after the cess ends. The expiration of the cess will have implications for taxation and revenue distribution among states.

The National Stock Exchange (NSE) commenced its trading operations on November 3, 1994, marking a significant milestone in India's financial landscape. To celebrate its 30th anniversary, NSE has expanded its accessibility by introducing its mobile app and websites in eight additional Indian languages. This move aims to increase inclusivity and cater to a broader audience, underscoring NSE's commitment to democratizing access to financial markets. Under the leadership of MD and CEO Ashishkumar Chauhan, NSE continues to innovate and enhance its services.

The National Institute of Public Finance and Policy (NIPFP) has revised India's GDP growth forecast for FY25 to a range of 6.9-7.1%. This adjustment reflects a notable moderation in growth observed during the June quarter, largely due to a significant contraction in net exports and reduced government consumption, influenced by the election model code of conduct. Previously, NIPFP had estimated a higher growth range of 7.1-7.4%. The downgrade highlights the challenges facing the economy, including a reported 19.5% decrease in capital expenditure during the April-August 2024 period compared to the previous year.

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.