CURRENT AFFAIRS

India's decision to stay out of the Regional Comprehensive Economic Partnership (RCEP) in 2019 appeared risky to many experts at the time. However, six years later, India has effectively reaped most of the economic benefits associated with RCEP without formally becoming a member.

In 2025, the Government of India undertook a wide-ranging set of economic reforms aimed at simplifying governance, reducing compliance burden, and strengthening inclusive growth. These reforms span income tax restructuring, labour codes, GST 2.0, rural employment guarantees, MSME support, export promotion, and ease of doing business measures—marking a decisive shift towards outcome-driven and citizen-centric economic governance.

The Reserve Bank of India's latest 'Trends and Progress of Banking in India, 2024–25' report confirms that the country's banking system has become more resilient and confident than ever before, driven by minimal non-performing assets (NPAs), strengthening capital, and widespread digital and financial inclusion.

More than six years after opting out of the Regional Comprehensive Economic Partnership (RCEP) in 2019, India has effectively secured most economic benefits of the grouping without formally joining it. The conclusion of the India–New Zealand Free Trade Agreement (FTA) marks a key milestone, as India now has FTAs with all RCEP members except China, reflecting a calibrated strategy balancing market access, strategic autonomy, and economic security.

Digitalization has emerged as a key driver of India’s structural economic transformation. The rapid spread of digital technologies is not only enhancing productivity and efficiency but is also playing a decisive role in governance, financial inclusion, and employment generation. It is estimated that by 2030, the digital economy will contribute around 20% of India’s Gross Value Added (GVA).

The Central Government has constituted the Bureau of Port Security (BoPS) as a statutory body under Section 13 of the Merchant Shipping Act, 2025. It is modeled after the Bureau of Civil Aviation Security (BCAS) and will function under the Ministry of Ports, Shipping, and Waterways.

Tax Revenue refers to the income collected by the government through various taxes. It constitutes the major portion of the government’s total revenue receipts and is used to run the economy, fund development projects, implement welfare schemes, and build infrastructure.

Rising investor preference for gold—particularly through Gold Exchange Traded Funds (ETFs)—has renewed policy debate on India’s long-standing dependence on gold imports and their implications for the current account deficit (CAD), foreign exchange reserves, and macroeconomic stability.

India’s persistent underperformance in manufacturing growth has come under renewed focus amid debates on structural constraints, public sector wage dynamics, productivity gaps, and their implications for industrial competitiveness and job creation.

A recent analysis of RBI’s State-wise export data reveals that India’s export growth is increasingly concentrated in a few States, exposing deepening regional imbalances and questioning the assumption that export expansion automatically leads to broad-based industrialisation and employment generation.