Govt. may extend the PLI scheme to chemicals, petrochemicals Context: Finance Minister Nirmala Sitharaman hinted on Thursday that major international investors like BASF, Adnoc, Rosneft, and Aramco are searching for joint venture partners to invest in India and that the government is open to introducing […]
G-20: 39 MNCs come together for a circular economy coalition Context As stated by Union Minister Bhupender Yadav at the Resource Efficiency Circular Economy Industry Coalition (RECEIC) launch on the sidelines of the fourth G-20 Environment and Climate Sustainability Working Group (ECSWG) and Environment and […]
Centre bans export of non-basmati white rice Context On Thursday, the Union government prohibited the export of white rice that isn’t basmati. In a notification, the Union Commerce Ministry’s Directorate General of Foreign Trade stated that the ban would take effect right away and that […]
Exports dip in the face of global uncertainity Context: The government is playing it safe by not declaring a specific target for outbound shipments this year and is likely to choose a variety of scenario-based targets in its place. This is due to the fact […]
Inflation Touches 4.8% As Food Prices Climb and Tomato Shock Context : From May’s 4.31%, retail inflation accelerated to a three-month high of 4.81% in June, driven by a sharp increase in food prices as a result of rising prices for products such as cereals, […]
RBI’s riot provisions to aid borrowers Context: According to the Manipur administration, riots and other acts of violence have affected the entire State, having an adverse effect on people’s ability to conduct business and maintain their way of life. Role Of RBI in Riots and […]
Service Sector in India #GS III Indian Economy Context: According to a monthly survey released on Friday, the Indian services industry grew at its fastest rate in 12 years in February, helped by favourable demand conditions and new business gains. Its highest level in 12 […]
WHAT’S FEEDING INFLATION IN INDIA Present circumstances: ∙Globally, the rate of product inflation is decreasing as demand and input costs go down. Yet, India is experiencing rising prices. ∙Despite the fact that demand for high-touch services is increasing more slowly than anticipated, services inflation is nevertheless significant globally. In India, the cost of living is decreasing. Urban demand growth as a source of inflation: ∙The decrease in rural consumer spending in the second half of 2021 marked the beginning of everything. ∙The inconsistent monsoon rains, increased inflation, and the spread of the March heatwave during 2022 led to a mediocre harvest and a significant decline in rural income. ∙Around this time, demand rose in urban areas. Lockdowns ceased, and employment in cities resumed. During the epidemic era, workers who had fled for their homes returned to the big cities. ∙Every time an Indian worker moved from a rural to an urban region, their earnings climbed. Rising salaries correlated with high expenditure. This made the demand shortfall in rural areas even more obvious. ∙The latter few months of 2022 saw an upsurge in winter agricultural sowing. Since more labour were needed on the ground, agricultural pay rose. ∙In fact, after accounting for inflation, they went above pre-pandemic levels. Other rural indicators, such as the manufacturing of consumer non-durables, which grew swiftly from October levels, also pointed to stronger revenues. ∙By the end of 2022, the shift in labourers moving back to urban areas and the ensuing growth stimulus had essentially come to an end. Following that, indices of urban demand, such as the manufacturing of consumer durables, began to fall. Fair enough, demand in rural areas is only slightly rising while it is somewhat decreasing in metropolitan areas. Neither is […]
Balancing Growth with Stability #GS 03 Budget, Economy, Infrastructure For Mains Concerns with the growth rate Even though the economy has staged a recovery and surpassed the pre-pandemic income level, the growth rate remains below the pre-pandemic trend at less than 7%. However, inflation remains […]
Economic Survey on various Sectors #GS 03 Economy For Prelims GDP Growth Economic Survey asserted that India’s GDP would grow 6.5% in 2023-24 supported by solid domestic demand and a pickup in capital investment. The final growth outcome for 2023-24 is expected to be in […]