Women’s Role in India’s Inclusive Growth

NITI Aayog recently launched the report “From Borrowers to Builders: Women’s Role in India’s Financial Growth Story,” highlighting the increasing role of women entrepreneurs in shaping India’s economic landscape. The report reveals that the number of women seeking credit has tripled between 2019 and 2024, with nearly 60% of them from semi-urban or rural areas. While women under 30 account for only 27% of retail credit uptake compared to 40% for men, the overall participation of women in credit origination has grown significantly. Gold loans continue to dominate female borrowing, rising from 19% in 2019 to 36% in 2024. The report emphasizes that encouraging women entrepreneurs could increase India’s GDP by 27%, as estimated by the IMF. Initiatives such as the National Rural Livelihood Mission, the Women Entrepreneurship Platform (WEP), and PM SVANidhi Yojana have played a critical role in empowering women financially. However, challenges such as limited access to credit, societal biases, and lack of mentorship remain significant hurdles. The report stresses that targeted interventions, better credit accessibility, and policy support can unlock the full potential of women-led enterprises.

SC Calls for Strengthening of Tribunals

The Supreme Court has emphasized the urgent need to strengthen tribunals in India, citing issues related to staff appointments, service conditions, and judicial tenure while reviewing the Tribunal Reforms Act, 2021. Tribunals, which serve as quasi-judicial bodies, were introduced under the 42nd Amendment Act (1976) to expedite dispute resolution in specialized areas. However, concerns over judicial independence, case backlogs, and overlapping jurisdiction with regular courts persist. The Supreme Court struck down provisions of the Tribunal Reforms Act that restricted judicial influence in selection committees, asserting the need for autonomy. Tribunals such as the Armed Forces Tribunal (AFT) and National Company Law Tribunal (NCLT) continue to struggle with heavy case loads and staffing shortages. The court has recommended setting up a National Tribunals Commission to oversee tribunal administration, expedite appointments, and improve infrastructure. Clearer jurisdictional definitions between tribunals and courts are also needed to ensure smoother functioning.

Success of National Health Mission (NHM)

The Union Health Minister chaired the ninth meeting of the Mission Steering Group of the National Health Mission (NHM), highlighting significant achievements in India’s public healthcare system. Launched in 2005 as the National Rural Health Mission and expanded into NHM in 2013, the mission has successfully reduced India’s Maternal Mortality Ratio (MMR) to 100 deaths per 1 lakh live births, marking an 83% decline since 1990. Infant Mortality Rate (IMR) and Under-5 Mortality Rate have also seen substantial declines of 69% and 75%, respectively. Government health expenditure has increased from 22.5% in 2004-05 to 48% in 2021-22, reducing out-of-pocket medical expenses for citizens. Key programs under NHM include Ayushman Arogya Mandirs, the National Tuberculosis Elimination Program, the National Dialysis Program, and the Sickle Cell Anemia screening initiative. With over 5.23 lakh healthcare professionals deployed under NHM, the mission has significantly strengthened India’s healthcare infrastructure and service delivery.

India’s Agriculture Exports

India’s agricultural exports grew by 6.5% in 2024, rising from $35.2 billion to $37.5 billion between April and December. However, the agricultural trade surplus has declined from a peak of $27.7 billion in 2013-14 to $16 billion in 2023-24. The UN Food and Agriculture Organization’s food price index has fallen, making Indian exports less competitive and exposing farmers to cheaper imports. Edible oil imports, particularly palm and soybean oil, have surged, making India the world’s largest importer of vegetable oils. Climate variability has also impacted domestic pulse production, pushing imports beyond $5 billion in 2023-24. Trade restrictions on key commodities such as rice and sugar have further limited India’s market reach. Experts recommend diversifying export markets, building climate resilience in farming, and improving value-added processing to enhance India’s competitiveness in global agriculture.

IMF Raised Concerns Related to NBFCs

The International Monetary Fund (IMF) has raised concerns about financial instability in India due to the concentrated exposure of Non-Banking Financial Companies (NBFCs) to the power and infrastructure sectors. In its “India Financial System Stability Assessment” report, the IMF noted that 63% of power sector loans in FY24 came from the top three Infrastructure Financing Companies (IFCs), up from 55% in 2019-20. This over-reliance on NBFCs increases systemic risk, as the power sector faces structural challenges that could lead to defaults. NBFCs are closely linked to banks, corporate bond markets, and mutual funds, amplifying potential financial instability. Stress tests indicate that public sector banks may struggle to maintain capital adequacy ratios under stagflation conditions. The IMF has recommended stricter liquidity regulations for NBFCs, enhanced risk monitoring, and ensuring uniform regulatory standards for state-owned and private NBFCs.

Designing India’s AI Safety Institute

The Indian government has announced the establishment of an AI Safety Institute under the IndiaAI Mission to ensure responsible AI development. The institute will work in collaboration with academia, startups, and industry leaders to address AI-related risks, including bias, discrimination, social exclusion, and privacy concerns. Countries such as the UK, the US, and Japan have already launched AI Safety Institutes to address emerging AI risks. India’s initiative aligns with global efforts such as the Bletchley Declaration, which emphasizes AI risk mitigation and standardization. The AI Safety Institute will play a crucial role in developing indigenous AI models, enhancing AI ethics, and ensuring transparency in AI decision-making.

Additional Key Developments

Gum Arabic, an essential emulsifier used in the food and pharmaceutical industries, faces supply chain disruptions due to the ongoing conflict in Sudan, which produces 80% of the global supply. The Wallace Line, a crucial concept in biogeography, was revisited to understand species distribution between Asia and Australia. China has discovered one million tonnes of thorium reserves in Inner Mongolia, highlighting its potential in future nuclear energy. The Supreme Court has criticized the Real Estate Regulatory Authority (RERA) for its inefficiencies and called for reforms. India’s research and development (R&D) spending has more than doubled in the past decade, rising to ₹1.27 lakh crore, with initiatives such as the DISHA Program and the National Research Foundation driving innovation. NASA’s PUNCH Mission was launched to study the solar maximum phase, which can impact satellite operations and power grids. Kerala has passed a resolution opposing offshore mining, citing environmental concerns. Lastly, Prime Minister Narendra Modi inaugurated Vantara, the world’s largest wildlife rehabilitation center in Jamnagar, Gujarat, which has been recognized for its exceptional contributions to animal welfare.

India’s continued focus on financial stability, healthcare expansion, AI safety, and sustainable agriculture reflects its commitment to long-term growth and development. Strategic interventions in these areas will be crucial for maintaining economic resilience and technological leadership on the global stage.