Current Affair Category: Indian Economy

India’s manufacturing sector underperforms compared to China and South Korea, partly due to public sector wages that raise costs and reduce competitiveness; despite growth in private industries like software and services, India sees limited technological upgrading, uneven wage growth, and increasing inequality   A reason why India has lagged behind certain non-Western economies — such […]

The Union Government introduced the Mahatma Gandhi National Rural Employment Guarantee (Amendment) Bill, 2025 in Parliament recently. It aims to reform and modernize the flagship rural employment scheme (MGNREGA), which was launched in 2005. The Bill replaces the old 2005 Act and incorporates several changes, including allowing states to use MGNREGA funds for other rural […]

 Why in News ? NK Singh (former Chairman of the 15th Finance Commission) is in the news for his inaugural address at the 108th Annual Conference of the Indian Economic Association (IEA), held at Osmania University, Hyderabad, in December 2025. Focus on “General Government”: Singh emphasized that global investors do not just look at the […]

Why in the News? The article highlights a key economic paradox: India’s GDP is expanding robustly (around 6–7% in recent quarters), but private capital expenditure (capex) remains stagnant at ~12% of GDP for over a decade. Key Points: GDP Growth vs. Private Capex Disconnect India’s GDP has grown rapidly post-COVID, but private capex (investment in […]

Rupee Weakness Against US Dollar in 2025: Causes, RBI Role & Perspectives Introduction Current Status (as of Dec 2025): Rupee has depreciated ~5-6% YTD against USD, breaching historic lows (~₹90-91/USD). Context: Despite India’s strong growth (fastest major economy), contained inflation, and improving external metrics, rupee is weakening — even as USD weakens against other currencies. […]

 Why in News ? The Rajya Sabha passed the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025 on Wednesday via a voice vote. This follows the Lok Sabha’s clearance of the bill just a day prior, effectively opening the Indian insurance sector to 100% Foreign Direct Investment (FDI). Key Legislative Changes: The passing […]

Why in News ? The Rupee breached the 91 level, hitting an intraday low of 91.14 before closing at 90.93. Performance: It is currently one of the weakest major currencies globally and the weakest in Asia for 2025. Historical Context: This represents a fresh all-time low for the currency.  Key Drivers of Depreciation: Market analysts […]

Why in News ?  India’s parliament has seen the introduction of a new bill that grants employees the power to ignore work communications outside official hours. The Right to Disconnect Bill, 2025, targets the constant connectivity that blurs boundaries between professional and personal life. Employees gain the legal right to switch off from calls, emails, […]

The Indian Railways’ High Density Network carries the bulk of the national transport’s load. The railways should focus more on decongesting and increasing the capacity of this section, according to Mangal Dev, Head of Hitachi Rail (Mobility) and Director of Hitachi India Pvt. Ltd. Why is it important to decongest the railways’ high density networks? […]

Why in News ? As per the RBI’s State of Economy Article , the fiscal, monetary, and regulatory measures undertaken so far this year should pave the way for a virtuous cycle of higher private investment. What does it Mean ? Policy Actions (Causes): The government (fiscal), RBI (monetary), and financial sector bodies (regulatory) have […]