economy

Doctrine of Separation of Powers

The Supreme Court recently upheld the principle of checks and balances by issuing several key rulings culminating in the doctrine of separation of powers in India. About Doctrine of Separation of Powers This doctrine divides the government into three branches:...

MSME Sector in India, Government Initiatives, Benefits and Challenges

Context: The Union Ministry of Micro, Small, and Medium Enterprises (MSME) is amending the MSME Development Act, 2006 to improve mechanisms for managing disputes related to delayed payments and better to address the evolving needs of the MSME sector. More...

Power Markets in India: Functioning, Advantages, Road Ahead

Context: To address peak power demand during an unusually hot summer, the government has allowed the trading of surplus electricity generated from "linkage coal" in the country's power markets. Coal linkages are typically allocated by the government to thermal units...

Global Economic Prospects Report 2024 Key Highlights

Context The World Bank's Global Economic Prospects report projects global growth to hold steady at 2.6% in 2024, with a slight increase to an average of 2.7% in 2025-26. This growth rate remains below the pre-COVID-19 decade's average of 3.1%....

Foreign Portfolio Investment (FPI), Benefits and Challenges

Context: Foreign portfolio investors (FPIs) pulled out ₹14,800 crore from equity markets, driven by the outcomes of recent elections and the appealing valuations of Chinese stocks. Foreign Portfolio Investment (FPI) Foreign portfolio investment (FPI): It involves holding securities and other...

Relationship Between Bonds and Bond Yield

Context: Recently, the yield on the 10-year government bond rose sharply by 9 basis points, marking the largest increase in eight months. More In News Concurrently, the Indian Rupee depreciated by 38 paise, closing at 83.53 against the dollar, representing...

Preston Curve, Problems and Controversies

What Is Preston Curve? The Preston Curve is an empirical cross-sectional relationship between life expectancy and real per capita income. It was first described by Samuel H. Preston in 1975. It suggests that individuals born in richer countries tend to...

Evergreening of Loans, Risk and Mitigation Strategies

Context: The Reserve Bank of India (RBI) has imposed business restrictions on two Edelweiss group companies, Edelweiss Asset Reconstruction Company (EARC) and ECL Finance Ltd (ECL), due to concerns related to evergreening of loans observed during supervisory examinations. What is...

Global Unemployment Rate Drop Slightly in 2024: ILO

Context: The International Labour Organization (ILO) has indicated that the global unemployment rate is projected to decrease marginally from 5.0% in 2023 to 4.9% this year, despite ongoing disparities in labour markets. Highlights of Global Unemployment Regional Insights United States:...

Tackling Inflation in India, Policies, Challenges

Context The Reserve Bank of India (RBI) has effectively managed consumer price inflation within its mandated range of 4% ± 2%. Strategic use of monetary policy has stabilised prices and protected consumer purchasing power. Ensuring Financial Stability and Surplus Generation...