Context: The Deputy Governor Swaminathan J mostly appealed for greater empathy from the banks toward MSEs who face financial deprivation. Digital solutions, alternative credit models, and wider acceptance of TReDS should be considered in order to improve MSME finances.Delayed payments, information scarcity, and financial illiteracy were brought forward as the major issues.The 29th meeting of the Standing Advisory Committee (SAC) took place in Ahmedabad concerning the review of MSME credit flow. Recommendations by RBI for MSME Lending Hence, their take on ABI is that with MSMEs being the backbone of the Indian economy, the RBI advocacy for such innovative and inclusive banking solutions leads to fina
India to Overtake Japan as the Fourth Largest Economy
Key Highlights: India’s GDP Growth vs. Other Major Economies Country 2017 2018 2019 2020 2021 2022 2023 2024* India 6.8 6.5 3.9 -5.8 9.7 7.6 9.2 6.5* US 2.4 3.0 2.6 -2.2 6.0 2.5 2.9 2.8 China 6.9 6.7 5.9 2.2 8.4 2.9 5.2 5.0 Japan 1.7 0.6 -0.4 -4.2 2.7 1.1 1.5 0.1 India’s figures are based on financial years (April-March). India’s Economic Expansion in Dollar Terms Year GDP ($ Trillion) 2017-18 2.65 2018-19 2.70 2019-20 2.84 2020-21 2.67 2021-22 3.17 2022-23 3.35 2023-24 3.64 2024-25 3.91 Revised estimates and exchange rate fluctuations have been accounted for in this projection. Major Issues With steady growth along with favorable conditions in the world, India is going to overtake Japan, which will become the fourth largest economy by 2025. Only the US, China, and Germany will then be ahead of it. Source: BS
Manufacturing PMI
Context: The Manufacturing PMI in India has fallen to a 56.3 in February from a earlier figure of 57.7 in January.Such a figure is currently below 14 month but still well above contractionary territory. The Purchasing Managers’ Index (PMI) is the barometer for an economy’s manufacturing activity a reading above 50 implies expansion, the below value indicates contraction. Main Features Demand and inflation trends Chief India Economist, HSBC Purchasing Managers’ Index (PMI) The Purchasing Managers’ Index (PMI) is a leading economic indicator that controls business activity over the manufacturing and services spectrums. Monthly based surveys of companies on economic trends and market conditions provide a base for it. Types of PMI How is the Manufacturing PMI Derived? PMI is calculated from the survey responses provided by manufacturing companies based on five key variables: PMI values are interpreted as follows: Global PMI Measurement The Purchasing Managers’ Index (PMI) was first published in 1948 by the Institute for Supply Management (ISM), USA. The Singapore Institute of Purchasing and Materials Management (SIPMM) compiles PMI for Singapore. IHS Markit is known to be producing PMI for 30 countries, with India being one of them. The Manufacturing PMI in India dates back to survey responses from 500 manufacturing companies. Why is PMI Important? Even though some momentum waned within India’s manufacturing sector, it is still in expansion mode, with booming job creation and resilient demand. Looking ahead, however, some inflationary pressures and uncertainties in the global context would dent this momentum in future growth. Source: BS
Purchasing Managers’ Index (PMI)
The Purchasing Managers’ Index (PMI) is a leading economic indicator that controls business activity over the manufacturing and services spectrums. Monthly based surveys of companies on economic trends and market conditions provide a base for it. Types of PMI How is the Manufacturing PMI Derived? PMI is calculated from the survey responses provided by manufacturing companies based on five key variables: PMI values are interpreted as follows: Global PMI Measurement The Purchasing Managers’ Index (PMI) was first published in 1948 by the Institute for Supply Management (ISM), USA. The Singapore Institute of Purchasing and Materials Management (SIPMM) compiles PMI for Singapore. IHS Markit is known to be producing PMI for 30 countries, with India being one of them. The Manufacturing PMI in India dates back to survey responses from 500 manufacturing companies. Why is PMI Important?
India’s GDP growth rate for Q3FY25 at 6.2%
Context: India’s real GDP grew by 6.2% in Q3FY25, which is improved against the revised 5.6% in Q2FY25, but still among one of the slowest growth rates since Q4FY23. The poor performance of manufacturing activities and the services sector amid uncertainties surrounding global trade is rendering the government’s 6.5% full year growth target increasingly difficult to attain. Key Highlights While strong government spending and improved consumption provide some respite, there are severe challenges from global trade pressures, slow industrial growth, and worries concerning data credibility. Therefore, the 6.5% full year growth target will require a show of greater strength against external economic shocks and engagement of domestic demand.
Slow IPO Market
Context: Just 14 companies filed Draft Red Herring Prospectus (DRHP) forms in February as opposed to 29 in January, the lowest ever to show since November 2024.Decline in Fundraising: The overall amount being sought for IPOs dipped to â‚ą9,695 crore, which is a low of 9 months. What is Slow IPO Market? The condition called the Slow IPO Market is attributed to the low DRHP applications, which observed a new low of 3 months. What is Initial Public Offerings? What is Behind the Slowdown? Wider Market Effect Source: BS
Virtual Digital Assets (VDAs)
With the evolution of blockchain technology and expansion of digital economies, countries all over the world have begun amending their regulations in view of ensuring that Virtual Digital Assets (VDAs) are properly governed. India’s Income Tax Bill, 2025, sets forth a clear legal structure for VDAs under Section 2(111), and the country’s tax policies thus have corresponded to global standards. What are Virtual Digital Assets (VDAs)? VDAs as Property and Capital Assets This means that any gains resulting from the transactions involving the VDAs will be taxed in a manner analogous to property deals or transactions involving stocks and bonds. Tax Features Global Comparison Country Legal Status of VDAs Tax Treatment U.K. Property Subject to Capital Gains Tax (CGT) U.S. Securities Regulated under SEC financial market laws New Zealand Property Subject to income tax on trades UAE Regulated by VARA 0% personal income tax on certain gains Compliance and Reporting Requirements Heightened Regulation over Crypto Transactions Challenges and Road Ahead India’s taxation approach, therefore, goes so far as to reaffirm that VDAs are a non shadow asset class. For a robust, safe digital economy, the demand for stronger financial regulation, consumer protection, and standardized compliance guidelines has become urgent. Source: TH
Obesity Crisis in India
Context: As per National Family Health Survey, there is such a five fold increase in overweight and obesity cases in India as revealed by a new study published in The Lancet over the past three decades. The number of overweight or obese individuals increased from 53 million in 1990 to 236 million in 2021, projected to surpass 521 million by 2050 in urgent action failure, Making India the second most affected country in the world after China. This includes the key findings of the study What is Obesity? Obesity is a chronic disease that occurs when there is too much body fat. It can lead to many health problems, including heart disease, type 2 diabetes, and some cancers. Definitions of BMI Body mass index (BMI) is a calculation that estimates body fat and compares weight to height. It’s a quick and inexpensive way to screen for weight categories like underweight, overweight, and obesity. Need for Urgent Action: 5 Year Plan (2025-30) The study’s authors call for global and national policy interventions in order to curb the obesity crisis. According to Dr. Jessica Kerr, co lead author of the study, preventing obesity should come at top priority among low and middle income countries. The absence of an action plan could transform into a dramatic rise in an obesity related health care in the next decades. That holistic policy must advocate healthier diets and physical exercise, and improved urban planning to reverse the current trend. Source: TH
Bose Metal
What Is Superconductivity? What Are the Bose Metals? Niobium Diselenide (NbSeâ‚‚) A Bose Metal? The Experiment Significance Applications There may be some forsaken few who saw the glimmer of a new state of matter meeting neither the perceived classical nor the microscopic rules and potentially on a path to a new physics in condensed matter. Source: TH
Aditya-L1 Mission Update
Context: The Indian Space and Research Association has announced the second set of scientific data released by ISRO‘s solar observation mission Aditya L1, providing crucial information regarding the Sun’s photosphere, chromosphere, and corona, as well as in situ particle and magnetic field measurements at the first Earth Sun Lagrange Point (L1). The Scientific Journey of Aditya L1 The mission serves as a treasure trove of data for solar parameter studies and helps augment the understanding of solar activity, space weather, and their effect on Earth.
