Indian Economy: Growth, Development & Employment

Defence Minister Rajnath Singh has given approval to the updated Defence Procurement Manual (DPM) 2025 on September 14, 2025, which replaces the old 2009 version. This step is important now because it helps make the process of buying everyday items like spares and ammunition faster and simpler for the army, navy, and air force. It focuses on making India self-reliant in defence needs, especially when the country is spending about ₹1 lakh crore this year on such purchases, and it supports the government's push for quick decisions and home-grown innovation in a time of modern wars and global supply issues.

The Reserve Bank of India (RBI) has been steadily reducing its investments in US Treasury securities as part of a broader strategy to diversify its foreign exchange reserves, with holdings dropping to $227.4 billion in June 2025 from $242 billion a year earlier. This move, which includes boosting gold reserves, comes amid escalating US-India trade tensions under President Donald Trump's administration, which has imposed 50% tariffs on Indian exports, potentially prompting further reductions in US debt holdings to mitigate risks.

Amid apprehensions that businesses might not fully pass on the benefits of recent GST rate reductions to consumers, the Union Finance Ministry has directed its field formations to compile detailed monthly price data on a range of common-use items before and after the new rates take effect on September 22, 2025. This move follows the GST Council's decision to simplify the tax structure into a two-slab system, aiming to ensure transparency and prevent profiteering as part of the broader GST 2.0 initiative.

India's External Affairs Minister S Jaishankar joined a virtual meeting of BRICS leaders on September 8, 2025, called by Brazil's President Luiz Inacio Lula da Silva. He spoke out against connecting trade rules to things outside of business, like politics or sanctions. This was said while talking about recent US decisions to add high taxes on goods from India and Brazil. The meeting happened because of growing worries about unstable world trade, and Jaishankar stood in for Prime Minister Narendra Modi. Leaders from China, Russia, and others also took part to discuss ways to make global economy fairer for everyone.

Japanese Prime Minister Shigeru Ishiba resigned on September 7, 2025, following a series of electoral setbacks for his Liberal Democratic Party (LDP), including a major loss in the July upper house elections that stripped the ruling coalition of its parliamentary majority. The announcement comes shortly after finalizing a crucial trade deal with the United States, involving $550 billion in Japanese investments in exchange for reduced tariffs, highlighting the intersection of domestic political turmoil and international economic pressures amid global trade tensions.

The 56th GST Council meeting has introduced significant rate reductions on inputs in key sectors like textiles and fertilizers, easing the inverted duty structure where input taxes exceed output taxes. However, persistent wide gaps between these rates continue to raise concerns among industries, primarily due to delays in input tax credit refunds and resulting working capital blockages, prompting calls for faster processing mechanisms.

Recent archaeological excavations have revealed a remarkably well-preserved Harappan civilization settlement, providing new insights into their urban planning and technological capabilities. 123

Prime Minister Narendra Modi has introduced sweeping GST reforms aimed at stimulating domestic consumption and economic resilience amid escalating global trade tensions and looming U.S. tariffs. The changes involve streamlining the tax structure, providing immediate relief to consumers and MSMEs, and potentially repositioning India’s growth trajectory.