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Economy

Government Proposes PPP Reforms to Attract PE and Sovereign Wealth Funds into Greenfield Infrastructure

Livemint - EconomyPrelims · EconomyMains · GS3 Economy

The Centre plans to allow private equity firms and sovereign wealth funds to directly invest in greenfield infrastructure projects across sectors, aiming to boost long-term capital inflows and rationalize risk allocation in PPP models.

  • Department of Economic Affairs (DEA) is spearheading reforms to expand financial investors' early access to greenfield projects in power, railways, airports, ports, urban infrastructure, and water supply.
  • Current PPP frameworks restrict financial investors to operational assets, but the new model will allow participation at the pre-construction stage, subject to technical partnerships.
  • Rationalized risk allocation and flexible equity structuring are key features of the proposed framework, addressing construction, financing, and demand risks that deter early-stage investments.

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Polity & GovernanceGS2

International RelationsGS2

India-Oman CEPA: Strategic Trade Pact to Boost MSMEs, Employment, and Pharma Exports

Indian Express - OpinionPrelims · International relationsMains · GS2 International relations

The India-Oman Comprehensive Economic Partnership Agreement (CEPA) effective June 1 enhances bilateral trade by granting 100% duty-free access to 98% of tariff lines, significantly benefiting MSMEs, labor-intensive sectors, and pharmaceutical exports while safeguarding agricultural interests.

EconomyGS3

India's Climate Finance Challenge: Mobilizing $2.5 Trillion for NDCs by 2030

The Hindu - OpinionPrelims · EconomyMains · GS3 Economy

India requires ₹162.5 trillion ($2.5 trillion) by 2030 to meet its Nationally Determined Contributions (NDCs), with decarbonizing key sectors like steel, cement, power, and transport needing $467 billion in additional capital expenditure, highlighting the urgent need for innovative financing mechanisms.

Environment & ScienceGS3

El Niño's Economic Impact: A Multi-Dimensional Development Crisis for India

The Hindu - OpinionPrelims · EnvironmentMains · GS3 Environment and biodiversity

Forecasted El Niño conditions in 2026-27 threaten India's monsoon-dependent economy, potentially triggering heat stress, agricultural losses, food inflation, and informal sector vulnerabilities, making climate adaptation a governance priority.