🔹 Major Economic & Banking Developments
The RBI slashed its benchmark repo rate by 25 basis points to 5.25 per cent — its most aggressive monetary easing since 2019. Alongside, it approved large-scale open market bond purchases worth ₹1 trillion (≈ USD 11.1 billion) scheduled for mid-December, and a forex-swap infusion worth USD 5 billion. The move aims to inject liquidity into the banking and bond markets, support growth, and preserve financial stability as global headwinds mount.
The Asian Development Bank (ADB) issued a revised forecast for developing Asia: regional growth in 2025 is now projected at 5.1 per cent, up from 4.8 per cent in the previous outlook, driven by robust demand from high-tech economies and stronger-than-expected performance in countries like India. The 2026 growth forecast for South Asia has also been raised, reflecting improved optimism amid easing trade uncertainties.
Currency markets remain volatile: the Indian rupee touched record lows against the US dollar, prompting the RBI to reportedly engage in discreet dollar sales and intervene via dealers to stabilize the exchange rate without depleting reserves — a delicate balancing act amid capital outflows and widening trade deficits.
Implications for Banking & Competitive Exams:
Expect questions on repo-rate changes, liquidity-support operations (OMO, bond purchases, forex-swaps), regional growth forecasts, and the impact of currency fluctuations on banking and inflation.
🔹 National & Policy News
The government launched a massive new investment push: Microsoft committed USD 17.5 billion toward building AI infrastructure and sovereign-capability platforms in India, underscoring India’s ambition to remain at the forefront of global AI adoption and digital-economy transformation.
In civil aviation, the ongoing disruption at IndiGo triggered stern regulatory pressure: following thousands of flight cancellations and massive passenger inconvenience, the government ordered a 10 per cent curtailment of IndiGo’s flight schedule. The move is part of wider efforts to ensure safety and regulatory compliance, and the airline has been forced to process large-scale refunds.
In a bid to deepen ties with diaspora communities and attract investment, the first ever Pravasi Rajasthani Divas is being inaugurated in Jaipur. The event will bring together non-resident Rajasthanis (NRRs), top Union ministers, industrial leaders, and investors. Over ₹1 lakh crore worth of investment proposals are expected to be launched. New policies aimed at improving diaspora engagement — including dedicated grievance officers and district-level points of contact — will be unveiled.
🔹 International & Geopolitical Developments
The Asian Development Bank’s upward revision of regional growth forecasts signals improving macroeconomic prospects across Asia, which benefits India and could influence global capital flows, trade, and cross-border investments.
The upcoming visit of the Rick Switzer — Deputy United States Trade Representative — to India on 10–11 December marks a renewed push for a “fair and balanced” trade deal. With ongoing global trade tensions and tariffs, this visit could shape India–US economic relations, import-export policies, and trade flows during 2026.
🔹 Corporate & Market News
Equity markets remain cautious. Among top stock picks for near-to-medium-term investors: Hindustan Copper, Hindustan Petroleum and Shaily Engineering Plastics have been flagged for their potential upside over the next 2–3 quarters, based on technical analysis and strong structural support zones.
Other stocks to track include Tata Power, Swiggy, Zydus Life Sciences, Hudco and Nalco. The reopening of Swiggy’s QIP — at a floor price — has gathered strong attention, while infrastructure-related firms remain on watch due to government allotments and strategic investment flows.
🔹 Social, Environmental & Institutional Developments
The India Water Impact Summit (IWIS) began at Indian Institute of Technology Delhi, focusing on a holistic river-management framework. The summit emphasized the launch of district-level river management plans aimed at restoring ecological integrity across river basins — a major step toward sustainable water-resource governance in India. This is significant given increasing ecological pressure, water scarcity, and the need for integrated region-wise environmental planning.
🔹 Sports & Cultural Highlights
In tennis, the upcoming debut of the World Tennis League (WTL) in India — from 17 to 20 December in Bengaluru — adds a new dimension to domestic sporting entertainment. The event features an innovative format (four-set ties, mixed singles/doubles, Golden Point deuce, Super Shootout), blending sport and spectacle, and may influence the future landscape of tennis viewership and athlete exposure in India.
