RBI Moves to Ease Liquidity Crunch
Overview Relevance : GS 3(Banking , Economy) Key Measures Announced Government Bond Purchases: 56-Day Variable Rate Repo Auction: USD/INR Swap Auction: Context of the Measures Expected Outcomes
Will the FY26 Budget Reverse the Decline in Social Sector Spending
Declining Share in Union Budget Relevance : GS 3(Economy ) Scheme-Level Allocation Cuts Exceptions to the Trend The Need for Action in FY26 Budget Key Observations and Recommendations
The Impacts of Rupee Weakening
Nature of the Devaluation: Relevance : GS 3(Economy ) Exchange Rate Policies: Implications of Depreciation: Structural Challenges: Policy Dilemmas: Reflection: The Indian economy faces a dual challenge: managing inflationary pressures due to rupee depreciation while ensuring that real exchange rate movements do not hinder export recovery. A well-communicated and adaptive exchange rate policy will be crucial to navigating […]
Inflation Eases to 4-Month Low of 5.22
Context : Inflation Trends Relevance : GS 3(Economy ) Sector-Specific Inflation: RBI’s Response and Outlook: Factors Influencing Inflation: Future Outlook: Expert Opinions:
Decoding India’s growth slowdown
GDP Growth Slump: Relevance: GS 3(Economic Development) Data Discrepancies: Private Investment Issues: Sectoral Slowdown: Fiscal Strain: Recommendation for Revenue Mobilization: Conclusion:
The Centre’s share in States’ revenue has surged in the last decade
Findings: Relevance : GS 3(Economic Development) . Decline in States’ Own Revenue: Dependency on Centre: Inefficiency in Tax Collection: Implications: Conclusion:The increasing reliance on Central transfers and declining own revenue sources point to a structural issue in state finance management. States need to enhance their tax collection capabilities to reduce dependency on the Centre and improve fiscal autonomy. Effective tax reform, especially […]
GDP growth projected to fall to four-year low at 6.4%
Context : GDP Growth Projections: India’s GDP is expected to grow at 6.4% in FY 2024-25, the lowest in four years, down from 8.2% in FY 2023-24 (National Statistics Office’s advance estimates). Relevance : GS 3(Economic Development ) Economic Recovery: The economy grew by 6% in the first half of the current financial year, with a projected 6.8% […]
Financial System Stable on Healthy Balance Sheets
Context; The RBI reported a stable financial system in 2024, characterized by improved asset quality, strong capital buffers, and shifting deposit preferences driven by rising interest rates. Relevance : GS 3( Banking ) Asset Quality Profitability Trends Banking Resilience Deposit Profile Shift Implications Outlook
Leave Banking to RBI Says Supreme Court
Case Background Context: Relevance : GS 2(Judiciary ), GS 3(Banking ) Supreme Court’s Judgment: Observations by the Supreme Court Rationale Behind the Verdict Role of RBI: Judicial Overreach: Legal Framework Referenced Banking Regulation Act, 1949: Judicial Oversight: Implications of the Verdict Clarification of Roles: Impact on Consumers: Banking Autonomy:
Govt. will boost spending quality, cut fiscal deficit
Context: Finance Minister Nirmala Sitharaman is set to present the 2025-26 Budget on February 1, and the government is committed to reducing the fiscal deficit to 4.5% of GDP by FY2026. Relevance: GS 3 ( Budget,Economy)