economy

Middle Income Trap, Key Factors and Challenges for India

Middle Income Trap The middle-income trap is a situation where a country that attains a certain income gets stuck at that middle-income level and is unable to transition to a high-income level. Or The World Bank defines middle-income economies as...

Why heat, not rain, matters more for Inflation and Rural Demand

Context: Temperatures, more than rainfall or reservoir levels, have become the dominant factor in predicting food production and inflation in India. More in News Rising average temperatures and increasing volatility are strongly correlated with declining crop yields and rising food...

Per Capita Income of India, Calculation Methods and State-wise Data

Per capita income (PCI) is a key economic indicator that reflects the average income earned per person in a given area. It is an important measure for assessing the economic performance of a country or region and helps in understanding...

What is Stagflation? Causes, Impacts, and Policy Responses

Russia is facing the threat of Stagflation due to its slow growth rate. It has increased government spending by almost 50% after the start of the Ukraine war to Push growth & Wages. What is Stagflation? It is an economic...

Reducing Food Wastage, Impact and Solutions

The International Day of Awareness of Food Loss and Waste (FLW) is observed annually on September 29, co-convened by the Food and Agriculture Organization (FAO) and the United Nations Environment Programme (UNEP). This day aims to raise awareness about the...

An Opportunity To Rethink India’s Pension System

India's pension system has evolved significantly over the years, marked by three major schemes: the Old Pension Scheme (OPS), the New Pension Scheme (NPS), and the proposed Unified Pension Scheme (UPS). Each scheme represents a different phase of government policy,...

Unemployment Rate in India, Current Rate, Historical Trends, and Analysis

Youth unemployment is a critical issue affecting India's economic growth and social stability. The Periodic Labour Force Survey (PLFS) 2023-24 data reveals significant disparities in youth unemployment rates across states and Union Territories (UTs), with Kerala among the highest and...

Universal Basic Income, Need, Advantages and Disadvantages

Context: The concept of Universal Basic Income (UBI) has gained momentum globally, especially as automation and AI-driven technological advancements have led to jobless growth. What is Meant by Universal Basic Income (UBI)? It is a form of guaranteed income where...

Goods and Services Tax (GST), Objectives, Features, Subsumed Taxes

Goods and Services Tax (GST) Goods and Services Tax (GST) is an indirect tax system introduced in India on July 1, 2017, which subsumed multiple indirect taxes levied by the central and state governments, such as VAT, excise duty, and...

Evaluating the Impact of Corporate Tax Cuts

Context: In the years before the pandemic, two of the largest economies in the world — the U.S. and India — cut corporate tax rates in an attempt to stimulate growth. Tax Cuts in the USA Legislation: The Tax Cuts...