Shifting Dynamics in Indian Inflation
Context: The Reserve Bank of India’s recent observations reveal a noteworthy shift in the dynamics of inflation in India, with supply and demand factors playing crucial roles. Over the period from January 2019 to May 2023, approximately 55% of the Consumer Price Index (CPI) headline inflation is attributed to supply-side factors, while demand drivers contributed […]
About the Green Deposits
Context: Recently, the Reserve Bank of India (RBI) said it is not mandatory for banks and Non-Banking Financial Companies (NBFCs) to raise green deposits. Relevance: GS III: Indian Economy Dimensions of the Article: What are green deposits? Regulatory Framework for Green Deposits by RBI Conditions for Accepting Green Deposits: Transparency Requirements: Sustainable Sectors Eligible for […]
Improvement in GNPA Ratio
Context: The Reserve Bank of India’s recent report reveals a noteworthy reduction in the gross non-performing asset (GNPA) ratio for Scheduled Commercial Banks (SCBs). The ratio, which stood at 3.9% at the end of March 2023, experienced a significant decline, reaching 3.2% by the end of September 2023. This positive shift can be attributed to […]
About Index of Eight Core Industries
Context: The combined Index of Eight Core Industries (ICI) increased by 7.8 per cent (provisional) in November 2023 as compared to the Index of November 2022. The production of Coal, Electricity, Fertilizers, Natural Gas, Refinery Products and Steel recorded positive growth in November 2023. Relevance: GS III- Indian Economy About Index of Eight Core Industries: Released by: The […]
India’s Jobs Crisis- the Macroeconomic Reasons
Context: There are numerous signs indicating that India is currently grappling with a significant employment crisis. Both official data sources and numerous firsthand reports on the ground confirm this reality. There is a need to discuss in detail the macroeconomic factors contributing to this crisis. Relevance: GS2- Indian Economy- Indian Economy and issues relating to […]
T+0- Instant Settlement Cycle
Context: The Securities and Exchange Board of India (SEBI) has put forth a proposal to introduce a facility for clearing and settlement of funds and securities on T+0 (same day), providing an optional instant settlement cycle. This initiative aims to complement the existing T+1 settlement cycle in the secondary markets for the equity cash segment. […]
Internationalisation of the Rupee
Context: In a significant development in the realm of global trade and finance, India has achieved a historic milestone by making its inaugural payment for oil to the United Arab Emirates (UAE) in rupees. This marks a potential turning point in the endeavor to establish the rupee as a prominent global currency. Relevance: GS3- Indian Economy- […]
A New Economics for Inclusive Growth
Context: The inadequacy of jobs and incomes is identified as a critical vulnerability in India’s economy. The evidence is apparent beyond the confines of economists’ datasets. Farmers are advocating for improved prices, while workers in the informal sector and contractual roles are pushing for fair wages and social security. The state of the economy appears […]
Significance of Small Businesses in an Economy
Context: There has been a significant surge in micro-venture capital funding in India. Amidst various investors in the startup ecosystem, including angels, incubators, accelerators, family offices, India-focused large funds, and global VC funds, micro-VCs have gained prominence. According to Praxis, their number has increased from around 30 in 2014 to 90 in 2020. Relevance: GS3- Indian […]
International Monetary Fund’s Sovereign Debt Risk Assessment
Context: In the context of its Articles of Agreement, the International Monetary Fund (IMF) engages in annual bilateral discussions with its member countries. During these discussions, IMF staff gathers economic and financial data, engages in policy discussions with top officials, and subsequently compiles a report for review by the Fund’s executive board. Last Friday, the Finance Ministry released […]