A recent Reserve Bank of India (RBI) paper reveals that Telangana has the highest per capita UPI transaction intensity in India. The study, using PhonePe data, shows a steady decline in ATM cash withdrawals as a percentage of GDP, indicating a shift toward digital payments. While high-value transactions are common, the growth of UPI for low-value, everyday transactions (P2M) is reflected in the rising share of peer-to-merchant payments. Regional intensity is highest in southern and western states, attributed to urban centers, economic hubs, and high levels of employment-driven migration, while northeastern states maintain higher cash demand.
- UPI transaction intensity is measured in per capita volume terms, with Telangana leading, followed by Karnataka and Andhra Pradesh.
- There is a clear inverse relationship between the rise of UPI usage and the demand for cash in the economy.
- Peer-to-merchant (P2M) transactions are increasingly dominating the volume share, especially for ticket sizes below ₹500.
India faces a critical window to leverage its demographic dividend, with the working-age population expected to peak around 2043. The Confederation of Indian Industry (CII) emphasizes treating employment as a national priority through an Integrated National Employment Policy. Key focus areas include bridging the gap between industry needs and graduate employability, supporting labor-intensive sectors like textiles and tourism, and formalizing the expanding gig economy. The article advocates for the timely implementation of the four Labour Codes and the creation of an urban employment guarantee program to address job distress in cities, ensuring sustainable and inclusive growth.
- India will add approximately 133 million people to its working-age population over the next 25 years.
- The gig economy currently employs 80 lakh to 1.8 crore workers and is projected to grow to 9 crore by 2030.
- There is a significant mismatch between college curricula and industry requirements, necessitating skill-aligned programs.
RBI Governor Sanjay Malhotra noted that while the global economy has shown surprising resilience against high U.S. tariffs and trade restrictions, risks remain. He warned that U.S. President Donald Trump’s restrictive trade policies could permanently damage growth in certain economies, as all risks have not yet been fully priced into the markets. Although the tangible effects on the real economy have been muted so far, the Governor emphasized that diverging growth trajectories across different nations might lead to global underperformance relative to true potential in the coming years.
- The RBI Governor highlighted that global growth has remained upbeat despite increasing trade uncertainties and high tariffs.
- There is a concern that restrictive trade policies could lead to permanent structural damage in specific vulnerable economies.
- The full impact of current trade tensions has not yet been reflected in market pricing or real economy metrics.
India's clean energy sector is growing rapidly, adding 24.5 GW of solar capacity in 2024, making it the third-largest contributor globally. However, a significant financial scaffolding gap exists. To align with a 1.5°C pathway, India requires approximately $1.5 trillion to $2.5 trillion by 2030. Current flows fall short of this target. The article suggests diversifying finance strategies through public finance, blended finance, and credit enhancement instruments like partial guarantees. Unlocking domestic institutional capital from entities like the LIC and EPFO, along with transparent carbon credit trading schemes, is essential to bridge the investment gap for renewables and green hydrogen.
- India added 24.5 GW of solar capacity in 2024, trailing only China and the United States in global contributions.
- The Ministry of Finance estimates a requirement of $2.5 trillion by 2030 to meet national climate targets and expand infrastructure.
- Blended finance and credit enhancement instruments are needed to make green projects more attractive to private lenders by improving risk-return profiles.
Finance Minister Nirmala Sitharaman, speaking at the Kautilya Economic Conclave, emphasized that innovations in cryptocurrency, particularly stablecoins, are fundamentally altering global money and capital flows. She stated that nations must adapt to these new monetary architectures or risk being excluded from the global financial system. While the RBI has lobbied for a ban on private virtual digital assets, it is simultaneously piloting its own Central Bank Digital Currency (CBDC). Stablecoins, which peg their value to assets like the dollar or gold, present unique regulatory challenges. India currently taxes crypto transactions but has not legalized them as regulated financial products.
- Stablecoins are crypto assets designed to maintain a stable value relative to a specific asset or pool of assets like the US dollar or gold.
- The Finance Minister highlighted that these shifts in monetary architecture force nations to make binary choices regarding adaptation or exclusion.
- Central Bank Digital Currencies (CBDCs) are issued by central banks and carry the same legal backing as official sovereign currency.
The Union Ministry of Textiles is expected to announce a revised Production Linked Incentive (PLI) scheme for the textile sector, specifically focusing on manmade fibre (MMF) and technical textiles. The revisions aim to make the scheme more flexible and industry-friendly. Proposed changes include adding new HSN codes for MMF apparel and fabrics and lowering investment thresholds. For instance, investment criteria may be revised to ₹150 crore and ₹50 crore for different parts of the scheme. These changes are intended to attract investments from Micro, Small, and Medium Enterprises (MSMEs) and boost growth in the sector.
- The PLI scheme for textiles is being updated to include more products under MMF and technical textiles categories.
- Lowering investment thresholds to ₹50 crore and ₹150 crore will help MSMEs participate in the scheme.
- The goal is to enhance India's competitiveness in the global textile market and drive growth in MMF.
As India's digital economy grows, cybercriminals are using sophisticated tactics like social engineering, phishing, and 'digital arrests' to defraud citizens. Vulnerable groups, including the elderly and rural populations, are primary targets. The article emphasizes that while technical skills are important, many frauds exploit human psychology. To counter this, the author suggests AI-powered proactive monitoring, real-time sharing of alerts across banks, and strengthening KYC norms. Banks must move from reactive firefighting to proactive prevention. A 24/7 rapid-response unit and international cooperation are essential to protect the integrity of the digital financial ecosystem.
- Cyber frauds have evolved from simple ATM withdrawals to complex social engineering and 'digital arrest' scams.
- AI and Machine Learning can be used for anomaly detection and real-time fraud prevention in banking systems.
- Strengthening KYC and implementing blockchain for secure customer data management are recommended for banks.
China has become the world leader in green hydrogen, reaching an annual production of 36.5 million tonnes. It dominates nearly 85% of the global manufacturing capacity for Alkaline electrolysers. Electrolysers are essential for producing green hydrogen by splitting water using renewable energy. While China benefits from state subsidies and integrated supply chains, other countries are implementing strict regulations and local content requirements to challenge this dominance. The two main technologies are Alkaline (ALK) and Proton Exchange Membrane (PEM) electrolysers. China's dominance in ALK electrolysers is driven by lower costs compared to Western counterparts.
- China controls 85% of the global manufacturing capacity for Alkaline (ALK) electrolysers.
- Green hydrogen is produced using renewable energy, making it a key tool for global decarbonization efforts.
- PEM electrolysers are more efficient for fluctuating energy loads but are currently more expensive than ALK types.
The Anusandhan National Research Foundation (ANRF), India’s newest science funding agency, has developed 'SARAL' (Simplified and Automated Research Amplification and Learning). This AI-powered tool generates layperson summaries, videos, and posters from complex scientific research papers to make science more accessible. The ANRF, which absorbed the Science and Engineering Research Board (SERB), acts as a single-window clearance mechanism for research funding. It aims to provide low-interest, long-tenure loans to private companies for R&D. The foundation expects to receive 70% of its budget from private sources to foster 'deep tech' products.
- SARAL uses AI to translate complex research into accessible formats like summaries and videos for the general public.
- ANRF is the primary body for funding scientific research in India, replacing the erstwhile SERB.
- The foundation focuses on deep science, engineering, and 'deep tech' startups to create high-value products.
Chief Minister M.K. Stalin outlines Tamil Nadu's strategy to foster a startup revolution. The state has seen a six-fold increase in registered startups, reaching over 12,100 in four years. The strategy rests on three pillars: making the state a strategic capital through the TANSEED grant, ensuring inclusion and gender parity through specialized funds for SC/ST and women entrepreneurs, and building a decentralized ecosystem with regional hubs. Tamil Nadu has been recognized as a 'Best Performer' in the States' Startup Ranking 2022. The upcoming Global Startup Summit 2025 in Coimbatore aims to further this momentum.
- Tamil Nadu has over 12,100 DPIIT-registered startups, a six-fold increase in four years.
- The TANSEED grant provides seed funding of ₹10 lakh to startups to facilitate early-stage growth.
- The state focuses on inclusive growth through the SC/ST Startup Fund and special grants for women and transgender founders.
Foreign Portfolio Investors (FPIs) have been net sellers in the Indian stock market for three consecutive months as of late 2024. In September 2024 alone, FPIs withdrew ₹23,885 crore. Analysts attribute this trend to disproportionately high valuations of Indian stocks, dull corporate earnings, and global uncertainties such as US tariff policies. Furthermore, there is a notable shift of funds towards the Chinese market, which is seen as having more attractive valuations. The weakening rupee against the dollar has also reduced the attractiveness of dollar returns from Indian equities, leading to cautious sentiment among global fund managers.
- FPIs have pulled out approximately ₹1.54 lakh crore from Indian equities between January and September 2025.
- High valuations and stagnant corporate earnings have made Indian stocks less attractive compared to emerging peers like China.
- Global emerging market managers have cut India's allocation to 16.7%, the lowest since late 2023.
While India's Female Labour Force Participation Rate (FLFPR) has risen significantly, reaching 41.7% in 2023-24, a closer look reveals underlying vulnerabilities. The increase is primarily driven by rural women entering the workforce as 'helpers in household enterprises' or in self-employment, rather than regular salaried jobs. Much of this work is unpaid or low-paying, and real earnings for most categories of women workers have actually declined or stagnated. This suggests that while more women are entering the labor market, they are often doing so out of economic necessity into poor-quality, informal roles rather than dynamic, remunerative employment.
- FLFPR rose from 23.3% in 2017-18 to 41.7% in 2023-24, largely driven by rural women.
- The shift is characterized by a move from 'attending domestic duties' to 'unpaid helper' roles in family businesses.
- Real wages for regular salaried and self-employed women in rural areas have seen a downward trend despite higher participation.
The Union Commerce Ministry informed the Public Accounts Committee (PAC) that higher tariffs imposed by the U.S. will have a significant long-term impact on Indian exports, particularly the marine sector. Shrimp exports are especially vulnerable, facing effective levies exceeding 58% when combined with existing duties. To mitigate this, the government is working on market diversification, pushing for the registration of more export units in the EU and engaging with other countries like Russia. The PAC also reviewed the 'Performance Audit' of the Export Promotion Capital Goods (EPCG) Scheme, questioning its effectiveness in boosting manufacturing growth.
- U.S. tariffs on Indian shrimp exports have reached an effective levy of over 58%.
- The Commerce Ministry is seeking to diversify export markets to the EU and Russia to reduce dependence on the U.S.
- The Public Accounts Committee (PAC) is reviewing the Export Promotion Capital Goods (EPCG) Scheme.
Despite government efforts to promote formal e-waste recycling through the Extended Producer Responsibility (EPR) framework, the informal sector continues to play a dominant role. Millions of tons of electronics are disposed of annually, but only about one-third is processed through proper channels. The informal sector often harvests components for repair rather than recycling, which disrupts the 'circular economy' and leads to environmental hazards. Policymakers face a dilemma as informal set-ups provide livelihoods but lack the technology for safe metal extraction. Strengthening the EPR framework and improving material traceability are essential to secure critical minerals like lithium and cobalt.
- India generated approximately 4.17 million metric tonnes of e-waste in 2022, but only a third is processed formally.
- The Extended Producer Responsibility (EPR) framework requires manufacturers to collect and recycle their end-of-life products.
- Informal recyclers often prioritize component harvesting for repairs over the extraction of precious metals.
The Indian government has announced the development of two railway links connecting India and Bhutan: the Kokrajhar-Gelephu line (Assam) and the Banarhat-Samtse line (West Bengal). Spanning a total of 89 km and costing ₹4,033 crore, these projects aim to boost the Bhutanese economy, tourism, and people-to-people movement. India is Bhutan's largest trading partner, and these links will provide Bhutanese goods better access to the global market via the Indian railway network. This initiative is part of a broader strategic partnership, including hydropower projects and development assistance under India's 13th Five-Year Plan.
- The Kokrajhar-Gelephu and Banarhat-Samtse lines will be the first rail connectivity projects between India and Bhutan.
- The projects are designed to support Vande Bharat trains and will include major bridges and viaducts.
- India has pledged ₹10,000 crore in development assistance to Bhutan for its 13th Five-Year Plan (2024-2029).
Women's participation in Indian agriculture has surged, with nearly two out of every three working women now engaged in the sector. However, this 'feminisation of agriculture' is marked by significant challenges: nearly half of these women are unpaid family workers, and they often lack official recognition as farmers. This invisibility prevents them from accessing credit, land ownership, and government subsidies. While global trade trends and digital tools like e-NAM offer opportunities for income-generating entrepreneurship, structural barriers like low digital literacy and limited land rights persist. Policies must recognize women as independent farmers to ensure equitable growth.
- Women's employment in agriculture surged by 135% over eight years, now accounting for over 42% of the sector's workforce.
- Approximately 59.1 million women in the agriculture sector are classified as unpaid family workers as of 2023-24.
- Only 13-14% of women in agriculture are official landholders, limiting their access to institutional credit and insurance.
South-South and Triangular Cooperation (SSTC) has emerged as a vital complement to traditional aid, focusing on solidarity, mutual respect, and shared learning among developing nations. India has taken a leadership role, championing SSTC through initiatives like the India-UN Development Partnership Fund and the Voice of the Global South Summits. By sharing digital public infrastructure (Aadhaar, UPI) and cost-effective innovations in climate resilience and health, India is helping other nations achieve the 2030 Agenda for Sustainable Development. SSTC offers better returns on investment and is crucial as funding for traditional humanitarian sectors declines.
- SSTC is based on the 1978 Buenos Aires Plan of Action (BAPA) for technical cooperation among developing nations.
- India promotes its digital public infrastructure (DPI) models, like UPI and Aadhaar, as scalable solutions for the Global South.
- The India-UN Development Partnership Fund has financed 75 projects across 56 developing countries since 2017.
India's industrial activity growth slowed to 4% in August 2025, down from a six-month high of 4.3% in July. The slowdown was primarily driven by the consumer durables and non-durables sectors, along with slower growth in manufacturing, capital goods, and infrastructure. Conversely, mining, primary goods, and electricity showed positive turnarounds. Experts noted that recent tariff and GST reforms had no immediate effect on these figures. The Index of Industrial Production (IIP) data, released by the Ministry of Statistics and Programme Implementation, highlighted that while growth slowed, it remained significantly higher than the 0% growth recorded in August of the previous year.
- The Index of Industrial Production (IIP) growth slowed to 4% in August 2025.
- Consumer durables and non-durables sectors were the primary drags on industrial growth.
- Mining and primary goods sectors saw a turnaround, with primary goods hitting a seven-month high of 5.2%.
A recent analysis by the Comptroller and Auditor General (CAG) of India highlights the varied fiscal health of Indian states post-pandemic. While some states like Uttar Pradesh and Maharashtra showed revenue surpluses, others like Punjab and Kerala face high debt-to-GSDP ratios and interest payment burdens. The report notes that many states rely heavily on central transfers and lottery revenues rather than sustainable tax bases. Furthermore, 'off-budget' borrowings and delayed GST compensation have masked true fiscal deficits. The analysis warns that high welfare spending, while socially necessary, must be balanced with capital expenditure to ensure long-term economic stability.
- The CAG report shows that state debt levels spiked significantly following the COVID-19 pandemic.
- States like Punjab have debt-to-GSDP ratios exceeding 45%, leading to a 'debt trap' where new borrowings are used to pay interest.
- There is a significant 'vertical imbalance' where states are responsible for most social spending but have limited independent revenue sources.
In his latest 'Mann Ki Baat' address, Prime Minister Narendra Modi made a strong pitch for 'Swadeshi' (locally made) products and Khadi to strengthen India's economy. He highlighted that Khadi sales have surged significantly in recent years and urged citizens to support local artisans during the upcoming festival season. The PM also mentioned the 100th anniversary of the Rashtriya Swayamsevak Sangh (RSS), describing its journey as inspiring. Additionally, he lauded Lt. Commanders Dilna and Roopa Alagirisamy for becoming the first Indian women to circumnavigate the globe in a double-handed sailing vessel, symbolizing Indian grit.
- The Prime Minister emphasized the adoption of Swadeshi goods as a path to making India self-reliant (Atmanirbhar).
- Khadi is promoted as a symbol of national pride and a means to provide livelihoods to rural artisans and entrepreneurs.
- The address marked the upcoming centenary of the RSS, highlighting its role in the country's social fabric.
Observed on September 29, the International Day of Awareness of Food Loss and Waste (IDAFLW) highlights that one-third of global food is lost or wasted. In India, post-harvest losses cost nearly ₹1.5 trillion annually, impacting farmer incomes and environmental stability. Food loss contributes significantly to greenhouse gas emissions, particularly methane from rotting paddy. Solutions include strengthening cold chains through the PMKSY scheme, adopting AI-driven forecasting for logistics, and promoting a circular economy where surplus food is redirected to food banks and waste is converted into compost or bioenergy.
- Nearly one-third of all food produced globally is lost or wasted, undermining food security and climate goals.
- In India, post-harvest losses amount to approximately 3.7% of the agricultural GDP, with fruits and vegetables being the most vulnerable.
- Food loss generates over 33 million tonnes of CO2-equivalent emissions annually in India across 30 major crops.
The article discusses the 'Engels' pause,' a period where technological progress leads to productivity gains without immediate improvements in worker welfare. Currently, AI mirrors this by boosting corporate efficiency while stagnating wages and increasing inequality. To mitigate this, the author suggests governance models like the Mohamed bin Zayed University of Artificial Intelligence (MBZUI) for human capital development, robot taxes, or Universal Basic Income (UBI). Treating AI infrastructure as a public good and ensuring equitable access to compute and data are essential to prevent a prolonged period of jobless growth and social disparity.
- The 'Engels' pause' refers to a historical lag between technological innovation and the rise in living standards for the working class.
- AI is currently increasing productivity but also causing job displacement and widening the gap between capital owners and labor.
- Effective governance is required to redistribute AI-driven wealth through mechanisms like robot taxes or UBI experiments.
U.S. President Donald Trump has announced 100% tariffs on branded and patented medicines, effective October 1, to weaponize access to healthcare. While a 15% cap exists for the EU and Japan, hubs like the U.K., Switzerland, and Singapore face the full burden. India’s generics industry is currently spared, but uncertainty remains over Active Pharmaceutical Ingredients (APIs) and future expansions to biosimilars. This move could significantly raise drug costs for American patients and disrupt global supply chains, forcing nations like India to diversify export markets and accelerate alternative trade alliances to maintain pharma sector growth.
- The U.S. is imposing 100% tariffs on imported branded and patented medicines to reshape global supply chains.
- India's generics industry, which accounts for 90% of U.S. prescriptions, is currently exempt but remains vulnerable to future tariff expansions.
- There is significant uncertainty regarding whether Active Pharmaceutical Ingredients (APIs), dominated by India and China, will be included in the tariff net.
Online gaming companies have approached the Supreme Court, stating that their businesses have 'shut down' due to the implementation of the Promotion and Regulation of Online Gaming Act, 2025. The new law bans real money games, related banking services, and advertisements. The companies are seeking an urgent hearing and interim relief, arguing that the law violates the right to equality, freedom of expression, and the established legal distinction between games of skill and games of chance. The Centre maintains that the law is necessary to curb the 'rapid mushrooming' of online money games that pose risks to individuals and families.
- The Promotion and Regulation of Online Gaming Act, 2025, effectively bans real money online gaming in India.
- Gaming firms argue the law is unconstitutional and fails to distinguish between skill-based gaming and gambling.
- The Supreme Court has transferred various petitions from High Courts to itself to ensure a uniform authoritative pronouncement.