RBI Monetary Policy Preview: Key Points Subject: Economy Section: Monetary Policy Repo Rate Expectations: Likely to Remain Unchanged: RBI’s Monetary Policy Committee (MPC) expected to maintain the repo rate at 6.5% for the sixth consecutive time. Steady Repo Rate: If maintained, it would mark a year of the repo rate remaining steady. Monetary […]
Key Points from Chief Economic Adviser’s Insights on Interim Budget Subject: Economy Section: National Economy Fiscal Policy Adjustment: Chief Economic Adviser V. Anantha Nageswaran emphasizes the need for fiscal policy to step back as the economy regains momentum. Advocates a countercyclical fiscal policy, urging a gradual withdrawal of fiscal stimulus to rebuild fiscal […]
Three ways to deal with the high govt debt Subject: Economy Section: External Sector Context: The Narendra Modi-headed National Democratic Alliance (NDA) government will end its second term with overall public debt in excess of 80% of India’s gross domestic product (GDP) at current market prices. More on news: According to International Monetary […]
Why is fiscal consolidation so important? Subject: Economy Section: Fiscal Policy Why in the news? Recently Union Finance Minister Nirmala Sitharaman announced during her Budget speech that the Centre would reduce its fiscal deficit to 5.1% of gross domestic product (GDP) in 2024-25. What is the fiscal deficit? Definition: Fiscal deficit refers to […]
Exposing India’s financial markets to the vultures Subject: Economy Sec: External sector Context: In September 2023, J.P. Morgan unveiled its plan to include Indian local currency government bonds (LCGBs) in its Government Bond Index Emerging Markets(GBIEM) Global index suite. The inclusion is set to be effective from June 2024, prompting anticipation from other […]
Union Budget 2024-25: New initiative to boost Blue Economy 2.0 Announced Subject: Economy Sec: National economy Context: The interim budget speech by Union Finance Minister Nirmala Sitharaman emphasized support for Blue Economy 2.0 through a new scheme aimed at coastal aquaculture, mariculture, and adaptation measures for climate change. Details: Despite the lack of […]
Tax buoyancy helps Centre align with its fiscal consolidation roadmap Subject: Economy Sec: Fiscal Policy Context: The strong growth in tax revenues reflects the high tax buoyancy, which works out to be 1.2 in the revised estimates for financial year 2023-24 as against 1.0 in FY23. For 2024-25, the tax buoyancy is seen […]
Bilateral Investment Treaties (BITs) Subject: Economy Sec: External Sector Context: Finance Minister Nirmala Sitharaman during her Interim Budget speech said that India is negotiating BITs with trade partners to boost the inflow of foreign direct investments (FDI). More on news: A relook at BITs comes at a time when India is pursuing economic […]