economy

Export Can Drive the Growth

Context: In India consumption is subdued and private investment is weak. But exports could offer a way out. More in News India’s GDP is roughly $4 trillion while global GDP is a little more than $100 trillion. That means that...

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

The 55th GST Council meeting, held on December 21, 2024, in Jaisalmer, Rajasthan, under the chairpersonship of Union Finance Minister Nirmala Sitharaman, introduced significant changes to India’s Goods and Services Tax (GST) framework. These changes aim to simplify compliance, reduce...

Stagflation, Causes, Impacts, and Policy Responses

Context: In a recent statement External member of the Monetary Policy Committee Nagesh Kumar said that India is in a slow growth-high inflation scenario, largely due to food prices with significant weight in the Consumer Price Index. What is Stagflation?...

Direct Benefit Transfer Scheme, Benefits, Pros and Cons

Direct Benefit Transfers (DBT) and cash transfer schemes have gained significant traction in India. Around 15 states governed by various political parties have implemented versions of unconditional cash transfers, targeting women and marginalized sections of society. Direct Benefit Transfer (DBT)...

Coconut Oil Taxation in India

Coconut Oil Taxation in India Background: The dispute was on whether coconut oil, packaged in quantities from 5 ml to 2 litres, should be taxed as edible oil or hair oil Prior to GST Regime: Taxation Under the CET Act,...

India’s Firmer attempts at Mineral Diplomacy

India's Critical Mineral Dependency: Challenges Heavy Dependency: India has a 100% reliance on imports of lithium, cobalt, and nickel. This heavy dependence poses risks, especially given the geopolitical tensions surrounding these resources. China’s Near-Monopoly: Approximately 70% of India's lithium imports...

Stagnant Wages and Slowing Growth: Addressing India’s Economic Imbalance

Key Stats About Stagnant Wages and Slowing Growth Stagnant Wage Growth Wages in key sectors have grown very slowly over the last five years (2019–2023): Engineering, Manufacturing, Process, Infrastructure (EMPI):8% annual growth. Fast-Moving Consumer Goods (FMCG):4% annual growth (highest among...

Issue of India’s Economic Growth versus Emissions

What is Decoupling? It refers to the disassociation between economic growth and environmental degradation. Types of Decoupling: Absolute Decoupling: Economic growth occurs while emissions decrease. This is the ideal scenario, achieving growth without increasing environmental harm. Relative Decoupling: Both GDP...

RBI want a hedge against Dollar Reliance, but not push for De-dollarisation

Context The Reserve Bank of India (RBI) Governor said that India is not pursuing “de-dollarisation”, and that recent measures promoting transactions in domestic currencies are intended to de-risk Indian trade. The clarification came days after US President-elect Donald Trump threatened...

RBI’s AI tool MuleHunter.AI

RBI's AI tool MuleHunter.AI It is the Artificial Intelligence/ Machine Learning-based model. Developed by: Reserve Bank Innovation Hub (RBIH). RBIH is a wholly-owned subsidiary of the Reserve Bank of India (RBI). It was set up to promote and facilitate an...