Households’ Balance Sheet Stress Exhibits K-Shaped Dynamics: Nomura Sub: Eco Sec: National Economy and National Income Context: Nomura economists remarked household stress in India has also turned K-shaped What is K-Shaped Stress? It is rise in retail debt driven by consumption loans while asset-creating loans have a shrinking share India’s household stress is […]
Government Constitutes Panel to Revise Wholesale Price Index (WPI) Sub: Eco Sec: Inflation and unemployment Context and Objective Purpose: To revise the Wholesale Price Index (WPI) base year from 2011-12 to 2022-23 to reflect structural economic changes. Broader Goal: Transition from WPI to a Producers’ Price Index (PPI) for enhanced price tracking and […]
Proposed Safeguard Duty on Steel Imports Sub: Eco Sec: External sector Context and Background: Proposed Safeguard Duty: The Directorate General of Trade Remedies (DGTR) initiated an investigation into steel imports, targeting “Non-Alloy and Alloy Steel Flat Products.” Objective: To address concerns raised by domestic players about a significant increase in imports affecting local […]
As rupee hits new lows, real effective exchange rate soars to an all-time high Sub: Eco Sec: External sector Overview: The rupee is hitting fresh lows against the US dollar each day, yet its exchange rate has scaled an all-time-high in “real effective” terms. Real effective exchange rate (REER) index of the rupee […]
The 1991 Economic Reforms: How Manmohan Singh’s Historic Budget Speech Reshaped India Sub : Eco Sec: External sector Why in News The economic reforms of 1991, led by then Finance Minister Dr. Manmohan Singh, remain a cornerstone of India’s modern economic history. This transformative moment addressed a grave fiscal crisis, marked by soaring […]
India’s Plan to Cut Personal Income Tax Sub: Eco Sec : Fiscal Policy India is considering a personal income tax cut in the upcoming February 2024 Budget to support middle-class households and boost consumption amidst slowing economic growth. Proposed Tax Cut Details Target Group: Individuals earning up to ₹15 lakh annually under the […]
RBI’s Panel on AI Ethics in Financial Sector Sub: Eco Sec : Banking sector The Reserve Bank of India (RBI) has constituted a committee to develop a framework for the responsible and ethical use of Artificial Intelligence (AI) in the financial sector. Key Highlights Committee Name: Framework for Responsible and Ethical Enablement of […]