Economy Current Affairs

India's Digital Public Infrastructure has been recognized as one of the top ten effective reforms globally. This infrastructure, particularly Aadhaar and the Unified Payments Interface, supports financial inclusion and reduces transaction costs. It facilitates greater integration of micro, small, and medium enterprises into the formal economy. Institutional coordination and interoperability have played crucial roles in its success and development.

Robert E. Hall and Michael Woodford provided the theoretical and empirical underpinnings to a basic but powerful idea for policymakers: the economy is made out of the people in it.

The Finance Ministry has unveiled an important amendment to the India-Mauritius Double Taxation Avoidance Agreement. Effective August 10, the new Principal Purpose Test seeks to curb potential abuses of tax treaty benefits. This allows tax authorities to examine claims more thoroughly, specifically targeting investment vehicles based in Mauritius, such as foreign portfolio investors and private equity funds, to maintain fair taxation practices.

With the latest reforms, GST might finally become a ‘good and simple tax’

After having sorted out most of the rate-related complications in GST during its last meeting in September 2025, the GST Council has now unveiled several process reforms that could further overhaul how the tax is administered in the country

The RBI raised its benchmark repo rate by 25 basis points to 5.5%, its first hike since February 2023, and shifted its policy stance to ‘calibrated tightening’. The move came as the central bank raised its FY27 growth forecast to 7.1% while warning that inflation and its outlook were no longer benign.

A widening jobs gap threatens the promise of demographic dividends; the Global South faces an unprecedented employment challenge

Amit Shah, who heads the Home and Cooperation Ministries, said India’s criminal justice system was earlier known for delays, but the situation had improved

India must draw lessons from a decade of investment treaty experience

US President Donald Trump has signed the Sanctioning Russia and Iran Act of 2026, allowing tariffs of up to 100% on countries including India and China that buy Russian oil and gas. The law also expands sanctions on Russia’s energy and defence sectors and gives Trump broad discretion over which countries face the new tariffs.

A State that bears the infrastructural and social consequences of mineral extraction must retain a meaningful stake in the economic value generated from its natural resources

In the Economic Participation and Opportunity subindex, India reported a 41.2% parity score, 0.5 higher than the previous edition but 3.5 percentage points lower from its best result in 2013

The US is considering imposing tariffs on significant purchasers of Russian energy, which puts India's considerable imports of Russian crude at risk of sanctions. This development unfolds as India engages in negotiations for a bilateral trade agreement with the US. The looming tariffs threaten to disrupt global trade, adversely affecting Indian exporters while India continues to seek cost-effective energy solutions for its population.

Prime Minister Narendra Modi warns against weaponisation of technology, critical minerals

The India-US trade deal is nearly finalized, with both nations discussing preferential market access. India's free trade agreement with Chile is also in its final stages of negotiation. New Zealand FTA is expected to become active soon, potentially in October. Government efforts aim to reduce freight costs and support exporters effectively. India sees significant opportunities to expand its fintech services globally, especially in the Global South.

Members question the Finance Ministry’s explanation; panel chief K.C. Venugopal says cess proceeds must not be used to finance fiscal deficit instead of their intended purpose

The Delhi summit offers India an opportunity to restore BRICS’s original purpose

The strategic blueprint seeks to integrate defence diplomacy more closely with India’s wider foreign policy, economic interests and national security objectives

Indian Economy: Japan Credit Rating Agency (JCRA) has upgraded India’s sovereign credit rating from BBB+ to A-, restoring an A rating for India after more than 35 years. The upgrade follows rating increases by Morningstar DBRS, R&I and S&P Global Ratings. India’s strong economic growth, improving fiscal position, stronger banking system, digital infrastructure and low external vulnerability are supporting the latest rating upgrade.

The India-New Zealand free trade agreement will officially commence next month. This pact grants India one hundred percent duty-free access for all its exports. New Zealand previously imposed tariffs up to ten percent on key Indian goods. The agreement also promotes significant investments between the two nations. New Zealand has committed to investing twenty billion US dollars over fifteen years.