Economy

Are Election-Time DBT Schemes Voter Bribes?

Context: The Mukhyamantri Majhi Ladki Bahin Yojana in Maharashtra, launched four months before elections, offers ₹1,500 monthly financial aid to poor women. This has sparked debates about whether such Direct Benefit Transfer (DBT) schemes amount to voter bribery or genuine welfare measures. Key Features of Mukhyamantri Majhi Ladki Bahin Yojana …

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The Shift Toward De-Dollarisation

The global trend towards de-dollarisation refers to the efforts by various countries to reduce their reliance on the US dollar in international trade and finance. This editorial, based on the article Why ‘De-Dollarisation’ is Imminent, explores the causes and consequences of this shift, with a particular focus on the role …

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Cross-Border Payments

Context: The Reserve Bank of India (RBI) and the Maldives Monetary Authority (MMA) have signed an agreement aimed at promoting the use of local currencies—the Indian Rupee (INR) and the Maldivian Rufiyaa (MVR)—in cross-border transactions. About Cross-Border Payments (CBPs) Cross-border payments involve financial transactions where the payer and the recipient …

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Struggle to Eliminate Fossil Fuel Subsidies

Context (TH) Despite a global consensus on combating climate change, fossil fuel subsidies persist as a major hurdle for governments. By making fossil fuels cheaper, these subsidies encourage their continued use, ultimately undermining global climate objectives. Global Scope of Fossil Fuel Subsidies OECD Estimates: Approximately $1.5 trillion annually (2022). IMF …

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Net Borrowing Ceiling on States by Centre

Context: Kerala has raised a challenge against the Centre’s imposition of a Net Borrowing Ceiling (NBC) in the Supreme Court, arguing that it infringes on fiscal independence and state sovereignty. The Court will examine whether the Centre’s borrowing limits potentially conflict with federal principles and the fiscal autonomy of States, …

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GDP as a Measure of Economic Performance

Gross Domestic Product (GDP) represents the total monetary value of all goods and services produced within a country’s borders over a specified period. While it is widely used as an indicator of economic performance, it has significant limitations in assessing overall well-being and environmental health. Criticisms of GDP as an …

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Reduced Spending by Middle-Income Households in India

Context (IE | ET): Leaders in the fast-moving consumer goods (FMCG) sector have raised concerns over declining consumer demand among urban middle-income households. Reasons for Reduced Spending High Food Inflation & Essential Service Costs: Rising costs in areas like food, healthcare, and education have reduced disposable income, cutting into discretionary …

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Demographic Shift and India

Context: India’s elderly population (those aged 60 and above) is expanding rapidly. In 2023, there are 149 million elderly individuals, making up 10.5% of the total population. By 2050, this figure is projected to reach 347 million, or 20.8% of the population. Challenges of an Ageing Population Increasing Dependency Ratio: …

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Addressing Rising Income Inequality

Context: Income inequality remains a critical global challenge, requiring comprehensive solutions. To achieve greater equity, there is a need to shift from the traditional “economies of scope and scale” to an “economy of purpose.” Key Strategies to Combat Income Inequality Implementing Progressive Taxation: Progressive tax systems are essential for redistributing …

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Unemployment

Unemployment is defined as the condition of being without a job despite actively seeking employment and possessing the necessary qualifications, skills, and willingness to work. Types of Unemployment Frictional Unemployment: Temporary joblessness when individuals are between jobs or changing careers. Structural Unemployment: Occurs due to a mismatch between job seekers’ …

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Sustainable Development in the Indian Himalayan Region

GS-3: Key Environmental Concerns in the Indian Himalayan Region, Recent Supreme Court Judgments Support Environmental Conservation Efforts, The Indian Himalayan Region (IHR) is widely recognized as India’s “water tower” and a vital provider of essential ecosystem goods and services. Despite this critical understanding, there remains a significant disconnect between the …

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National Monetisation Pipeline (NMP)

Unlocking Value in Infrastructure The NMP is a government initiative launched in the 2021-22 Union Budget to leverage private sector expertise for infrastructure development. It focuses on monetizing core government assets (roads, railways, power) through partnerships, not privatization (ownership transfer). Goals and Benefits: Generate Rs 6 lakh crore over four …

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Vadhavan Port Project and India’s Maritime Infrastructure

Context: The Union Cabinet recently approved the development of the Vadhavan Port, a major greenfield deep-draft port project in Maharashtra. This ambitious project, estimated to cost ₹76,200 crore, is poised to significantly enhance India’s maritime infrastructure. Project Details: Implementation: The port will be constructed by Vadhavan Port Project Limited (VPPL), …

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Indo-Pacific Economic Framework (IPEF)

Introduction The Indo-Pacific Economic Framework for Prosperity (IPEF) is a strategic economic initiative launched by the United States in May 2022. It aims to strengthen economic ties among member countries in the Indo-Pacific region, fostering resilience, sustainability, and shared prosperity. This framework holds significance for regional economies, including India, offering …

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National Mission on Edible Oils-Oil Palm (NMEO-OP)

Introduction The National Mission on Edible Oils-Oil Palm (NMEO-OP) is a flagship initiative launched by the Government of India (GoI) in 2021 to address India’s heavy dependence on edible oil imports. This mission aims to significantly increase domestic oil palm production, a key source of edible oil, and reduce import …

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Green Bond

green bond

Concept Green bonds have emerged as a financial instrument aimed at channeling investments into environmentally sustainable projects. As the world grapples with climate change and environmental degradation, green bonds offer a mechanism to finance initiatives that mitigate environmental impact and promote sustainability. Definition of Green Bonds: Green bonds are debt …

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