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Economy

Corporate Profit-to-GDP Ratio Growth Faces Sustainability Challenges Amid Global Risks

Livemint - EconomyPrelims · EconomyMains · GS3 Economy

India's corporate profit-to-GDP ratio rose to 4.3% in FY26, but global tensions and softening consumption indicators threaten its sustainability, highlighting structural economic vulnerabilities.

  • Profit-to-GDP ratio for BSE 500 companies increased from 3.4% in FY23 to 4.3% in FY26, reflecting corporate earnings growth outpacing economic expansion.
  • Sectoral disparities are evident with BFSI sector's profit share rising to 1.7% while IT sector declined to 0.3%, showing uneven economic transformation.
  • Top 50 companies disproportionately drove growth, accounting for 3.0% of GDP in FY26 versus 2.2% in FY23, indicating increasing market concentration.

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Polity & GovernanceGS2

US Executive Order on AI Oversight: Balancing Innovation and National Security

Indian Express - ExplainedPrelims · Science and technologyMains · GS2 Governance

US President Donald Trump signed an executive order creating a voluntary framework for AI developers to share advanced models with government agencies for security testing, reflecting a shift towards balancing innovation with cybersecurity concerns.

International RelationsGS2

India-US Strategic Relations: Trust Deficit and Geopolitical Implications

Indian Express - OpinionPrelims · International relationsMains · GS2 International relations

The recent visit of US Secretary of State Marco Rubio to India failed to address key concerns in bilateral relations, highlighting a growing trust deficit and strategic misalignment between the two nations, crucial for India's Indo-Pacific strategy and global positioning.

EconomyGS3

Fiscal Consolidation Achieved in FY26 Despite Subsidy Surge and Capex Cuts

Livemint - EconomyPrelims · EconomyMains · GS3 Economy

The Indian government met its FY26 fiscal deficit target of 4.4% of GDP despite a surge in fertilizer subsidies to ₹2.1 trillion, achieved through sharp expenditure cuts and reduced capital expenditure growth to 1.6%, highlighting fiscal management challenges amid global price volatility.

SecurityGS3