ECONOMY

GS-3: Indian Economy Key Highlights India-U.K. total trade reached $19.3 billion in 2024-25, a 60% increase from $12.2 billion in 2016-17. Exports grew 41% to $12 billion, while imports nearly doubled to $7.3 billion. Top export categories: Electrical machinery (15.3%), Nuclear reactors/boilers (11.6%), Mineral fuels (9.1%), Pearls/stones (7%), Pharma (5.4%). …

GS-3: Indian Economy Key Points: SEBI accuses Pranav Adani, a director in multiple Adani Group companies and Gautam Adani’s nephew, of insider trading linked to the 2021 SB Energy Holdings acquisition by Adani Green Energy. Allegations state Pranav traded using unpublished price-sensitive information (UPSI) before the deal’s announcement, violating insider …

Context: The RBI has unveiled a draft Master Direction for Electronic Trading Platforms (ETPs) and is inviting feedback from stakeholders until May 31. What are ETPs? Electronic Trading Platforms (ETPs) are digital systems that enable the buying and selling of various financial instruments, including securities, money market instruments, foreign exchange …

GS3 – Indian Economy Context: The International Monetary Fund (IMF), in its latest World Economic Outlook, has downgraded growth projections for many countries, including India. Key Insights: Global Growth Forecast: The IMF has lowered its global growth estimate, reducing it by 0.5 percentage points to 2.8% for 2025, and by …

GS3 – IE Context: The Finance Minister has outlined a vision to expand the manufacturing sector’s contribution to India’s GDP from the current 12% to 23% by 2047, with an emphasis on nurturing sunrise industries. Vision 2047: Transforming India through Manufacturing Goal: Achieve a 23% GDP contribution from manufacturing by …

GS III-Economy Bonds function as a form of lending where individuals provide funds to entities like companies, municipalities, or governments. In return, the bond issuer promises to pay back the borrowed amount with interest over a defined time. Since bonds generate consistent returns, they are referred to as fixed-income securities, …

UPSC Relevance GS-3: Indian Economy – Growth, manufacturing sector GS-3: Economic Data – IIP, inflation, consumption, investment trends Key Highlights Declining Industrial Growth Industrial production growth dropped to 2.9% in February, down from 5.2% in January and 5.6% in February 2024. Sectoral declines: Mining: 1.6% Manufacturing: 2.9% Consumer Durables: -3.8% …

UPSC Relevance GS-3: Economy – Monetary Policy, Trade and Tariff Policies GS-2: International Relations – India-U.S. Trade Relations, Global Protectionism Key Points: RBI’s Repo Rate Reduction & Policy Change The Reserve Bank of India (RBI) lowered the repo rate by 25 basis points to 6% to boost economic activity amid …

GS III-Economy On April 2, 2025 (termed ‘Liberation Day’), U.S. President Donald Trump announced the imposition of reciprocal tariffs on imports from various countries, including India. This move aims to correct trade imbalances but has intensified global economic tensions and diplomatic frictions. Understanding the Concepts What is a Tariff? A …

GS III-Economy Context: Former U.S. President Donald Trump has proposed a new “Liberation Day” tariff regime, introducing a 10% flat import duty and targeted higher tariffs, including a 27% levy on Indian exports, sparking global trade concerns. What is a Tariff? A tariff is a form of taxation imposed by …

GS III-Economy Benefits of UPI Promotes Financial Inclusion: The number of banks integrated with UPI has expanded significantly from 21 to 399 (State of Digital Economy Report). Enhanced Transaction Efficiency: UPI enables seamless, round-the-clock transactions, eliminating time constraints. Support for Entrepreneurs: The platform facilitates business growth by reducing dependency on …

GS III-ECONOMY Latest Update on Gold Monetisation Scheme The Indian government has decided to discontinue Medium-Term and Long-Term Government Deposits (MLTGD) under the Gold Monetisation Scheme (GMS) effective March 26, 2025. Understanding the Gold Monetisation Scheme Launch: Introduced in November 2015, this scheme replaced the earlier Gold Deposit Scheme (GDS) …

GS III-ECONOMY Recently, the Russian envoy in India called for an alternative to the SWIFT system, as Russia was expelled from it following its invasion of Ukraine. This highlights SWIFT’s crucial role in global financial transactions and its impact on geopolitics. What is SWIFT? The Society for Worldwide Interbank Financial …

GS III- Industry & Economy Acquisitions Google’s $32 billion acquisition of cybersecurity firm Wiz includes a $3 billion+ breakup fee—one of the highest ever—raising concerns about its impact on M&A (Mergers and Acquisitions) deals. What is a Breakup Fee? A breakup fee is a penalty paid when an M&A deal …

GS III-Economy Currency depreciation refers to a decline in the worth of a currency within a floating exchange rate system. When the rupee depreciates, it signifies that its value has dropped relative to the US dollar, making it weaker than before. Factors Influencing Depreciation High Inflation Rate A country with …

GS3 – Indian Economy   Despite having the world’s largest youth population, India struggles with inadequate policies that limit their potential, impacting economic growth and global competitiveness. Youth Demographic Advantage India’s vast young population presents a unique opportunity to strengthen its workforce and drive economic progress—if effectively utilized. Challenges Faced …

GS 3 – ECONOMY Context The Securities and Exchange Board of India (SEBI) is exploring amendments to short-selling regulations to broaden market access, ease disclosure requirements, and refine penalty structures. Historical Background 2001: SEBI imposed a ban on short selling. 2007: Institutional investors were granted permission to engage in short …

GS 3 – ECONOMY Background The Reserve Bank of India’s (RBI) Financial Stability Report 2024 highlights a surge in household debt, with a shift toward more creditworthy borrowers. However, the growing trend of consumer loans raises concerns about broader macroeconomic stability. Household Debt Trends Debt-to-GDP Ratio: Increased from 36.6% in …

Subject: GS-2: International Relations – India-Canada Diplomacy, Foreign Policy Dynamics GS-3: Economic & Trade Ties – Bilateral Commerce, Diversification Efforts Key Points Context of India-Canada Rift Ties soured in 2023 over the killing of Khalistani separatist Hardeep Singh Nijjar in Canada. Canada’s Trudeau government implicated India, labeling diplomats “persons of …

Subject: GS-2: International Relations & Trade – WTO Compliance, India-U.S. Trade Ties GS-3: Economy & Global Commerce – Bilateral Trade Deals, Most Favored Nation (MFN) Clause Key Points India-U.S. Bilateral Trade Agreement (BTA) India and the U.S. plan to negotiate a multi-sector BTA by late 2025. Though not termed a …