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A REVISION OF GDP AND ITS IMPLICATIONS Why in the News? India has released a revised GDP series with 2022–23 as the new base year, replacing the earlier 2011–12 base year series. The revision reduces the estimated absolute size of GDP and alters the sectoral composition of production in the economy. While the correction in …
Read MoreNew CPI Series Sets Inflation at 2.75% Why in the News? The Ministry of Statistics and Programme Implementation (MoSPI) released the revised Consumer Price Index (CPI) with 2024 as the new base year, placing retail inflation at 2.75% for January 2026, reflecting updated consumption trends from HCES 2023–24. This revision has implications for the foreign …
Read MoreRESERVE BANK OF INDIA’S MONETARY POLICY COMMITTEE DECISION Why in the News? Policy Status: Repo rate unchanged at 25%, reflecting RBI’s decision to pause after cumulative rate cuts in 2025. Growth Upgrade: FY26 GDP forecast raised to 4%, indicating sustained economic momentum despite global uncertainties. Inflation Revision: FY26 CPI projection increased to 1%, while remaining …
Read MoreCentral Banks, Fiscal Deficits, and Emerging Debt Risks Syllabus: GS-2: Planning , Mobilization of Resources , Fiscal Policy, Direct & Indirect Farm Subsidies Why in the News ? Rising sovereign debt levels, especially in the United States, and the growing role of central banks in indirectly financing government deficits through quantitative easing (QE) and liquidity …
Read MoreRBI’s Liquidity Push Masks Deeper Banking Stress Syllabus: GS Paper – 3 Banking Sector & NBFCs, Statutory Bodies, Monetary Policy, Growth & Development Why in the News? The Reserve Bank of India (RBI) has announced large-scale liquidity infusion measures, including Open Market Operations (OMOs) and dollar-rupee swap auctions, despite system liquidity being in surplus. This …
Read MoreRBI Boosts Liquidity Through OMOs and Swap: An Environmental Clearance Perspective Why in the News? The Reserve Bank of India (RBI) announced a major environmental clearance-like liquidity infusion through ₹2 trillion Open Market Operations (OMOs) and a $10 billion dollar-rupee swap, amid persistent liquidity deficit, rupee pressure, and elevated government bond yields. This move can …
Read MoreStrengthening RBI’s Policy Focus on Financial Stability Syllabus: GS Paper – 2 Mobilization of Resources, Capital Market GS Paper-3 Banking Sector & NBFCs, Government Policies & Interventions, IT & Computers, Cyber Security Why in the News? The Reserve Bank of India (RBI) faces a crucial policy moment as inflation appears soft, growth remains strong, and …
Read MoreFlexible Inflation Targeting Needs Careful Future Calibration Syllabus: GS Paper – 3 Monetary Policy Growth & Development , Fiscal Policy Why in the News ? India’s Flexible Inflation Targeting (FIT) framework, which mandates maintaining 4% inflation with a ±2% band, is due for review in March 2026. The RBI’s new discussion paper raises key questions …
Read MoreRBI’s Proactive Shift Reflects Economic Concerns Syllabus: GS-3: Banking Sector & NBFCs, Monetary Policy, Inclusive Growth Why in the News? The Reserve Bank of India (RBI) has adopted a reform-oriented approach to tackle emerging economic slowdown risks. Through regulatory relaxations and liquidity recalibration, the RBI seeks to stimulate credit growth while managing inflation expectations, indicating …
Read MoreSafeguarding RBI’s Autonomy While Ensuring Democratic Accountability Syllabus: GS Paper – 3, Banking Sector & NBFCs, Growth & Development Why in the News? Recent debates over central bank independence have resurfaced amid concerns about regulatory capture, governor tenure, and political influence in RBI appointments. Drawing lessons from international models and recent financial reforms like GST, …
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