Complete Current Events notes on India’s Economic Announcements for BPSC and Other Competitive Exams in 2025
Current Events – 2
Here’s a detailed, note on India’s Economic Announcements over the past 18 months, specifically covering Budget 2024–25 and 2025–26 highlights, along with key RBI decisions.
India’s Economic Announcements over the past 18 months
1. Union Budget Highlights
Budget 2024–25 (Presented July 2024)
- Revised Income Tax Slabs (New Regime):
- 5% on ₹3–7 lakh, 10% on ₹7–10 lakh, 15% on ₹10–12 lakh (up from 5–9 lakh, etc.)
- Standard deduction raised from ₹50,000 to ₹75,000)
- Angel Tax Abolished: Relief for startups and early-stage companies
- Capital Gains Tax Changes:
- STCG increased to 20%; LTCG set at 12.5% with exemption limit raised to ₹1.25 lakh
- TDS Rationalisation: Lowered from 5% to 2% on several payments, e-commerce TDS cut to 0.1%
- GST & ITC Reforms: Extension of ITC claims window; thin capitalisation norms relaxed for entity financing in IFSC
Budget 2025–26 (Presented February 2025)
- No Income Tax up to ₹12 lakh under New Regime, effectively up to ₹12.75 lakh for salaried class (with standard deduction).
- NPS Vatsalya: Contributions exempt up to ₹50,000 per annum
- Railways Allocation: ₹2.52 lakh crore — a large commitment to infrastructure )
- FDI in Insurance: Raised from 74% to 100% with safeguards for reinvestment in India
- Innovation Push: ₹20,000 crore for R&D and innovation; 10,000 PM Research Fellowships announced; second gene bank for crop germplasm set up
- Export Incentives: Duty exemptions on electronics components (LED/LCD, EV batteries), shipbuilding goods; streamlined IGCR & provisional assessment rules
2. RBI Policy Decisions (Last 18 months)
Rate Cuts & Liquidity Measures (2025)
- June 2025: RBI implemented a surprise 50 bps repo rate cut to 5.5% and CRR slashed by 100 bps (to 3%), injecting ₹2.5 lakh crore into the banking system .
- Rationale: To support slowing GDP growth (~6.5%) and leverage low inflation environment .
Policy Pause & Signal
- August 2025: The RBI held the repo rate steady at 5.5% with a Neutral stance, citing stable growth forecasts and easing inflation (revised CPI projection for FY26: 3.1%) .
- Policy Outlook: While further cuts seem unlikely soon, the RBI remains data-dependent for future moves .
Market Intervention
- Currency Support: Amid U.S. tariff pressures, the RBI resumed intervention in the NDF (non-deliverable forwards) market to stabilize the rupee, which had weakened toward a six-month low near ₹87.9/$ .
3. Summary
| Area | Key Points for Prelims & Mains |
| Budget Taxation | Understand changes in tax slabs, standard deduction, NPS, angel tax repeal, export incentives, and innovation funding |
| Budget Infrastructure | Recall increased railway allocation and FDI policy shifts in insurance |
| RBI Policy Moves | Know the repo rate trajectory, CRR changes, monetary stance shifts, and reasons behind rate stability |
| Market Actions | Be aware of RBI’s interventions to manage rupee volatility |
Practice Objective Questions:India’s Economic Announcements
- Budget 2024–25 revised the standard income tax deduction to ₹____.
A) ₹60,000 B) ₹75,000 C) ₹50,000 D) ₹1 lakh
Answer: B - Budget 2025–26 set zero tax limit under new regime to ₹____ lakh for salaried individuals.
A) 10 B) 11 C) 12 D) 12.75
Answer: D - In June 2025, RBI’s CRR was reduced to __%.
A) 3 B) 3.5 C) 4 D) 2
Answer: A - The RBI’s June 2025 repo rate was cut by ____ basis points.
A) 25 B) 50 C) 75 D) 100
Answer: B - The RBI’s inflation forecast for FY26 was revised to __%.
A) 2.5 B) 3.1 C) 3.7 D) 4.0
Answer: B - To boost exports, Budget 2025–26 exempted duties on ____.
A) Oil imports B) LED panels & EV battery components C) Timber exports D) Agricultural equipment
Answer: B
learn