Category: Economy

  • India–Indonesia Strategic Partnership Deepens: Defence, Critical Minerals and Indo-Pacific Cooperation

    UPSC Mapping Component Details GS Paper GS-II Subject International Relations Prelims ASEAN, BrahMos, Indo-Pacific, Indonesia Mains India’s Act East Policy and strategic partnerships Static Linkage ASEAN, Indian Ocean Region, Maritime Security, SAGAR, Act East Policy Institutions ASEAN, Indian Navy, DRDO, BrahMos Aerospace International Concepts Indo-Pacific, Freedom of Navigation, Maritime Security Article Why in News? Prime…

  • Fertiliser Subsidy Bill Set to Double Amid Global Supply Crunch: Impact on Indian Agriculture and Economy

    Introduction India’s agricultural sector is facing fresh challenges as rising global fertiliser prices and supply chain disruptions threaten to significantly increase the country’s fertiliser subsidy burden. According to recent estimates, the fertiliser subsidy bill could touch nearly ₹3.4 lakh crore, almost double the budgeted allocation, due to escalating international prices and supply shortages. The situation…

  • India’s New Bilateral Investment Treaty Model: What the 2-Year Local Remedy Rule Means

    Introduction India is preparing a new framework for its Bilateral Investment Treaties (BITs) as part of a broader effort to balance foreign investment promotion with the protection of national sovereignty. According to recent reports, the government is considering a revised investment treaty model that would require investors to first seek remedies in domestic courts for…

  • Amid Global Shocks, India Must Strengthen Domestic Growth Drivers

    Amid Global Shocks, India Must Strengthen Domestic Growth Drivers

    India’s economy demonstrated remarkable resilience during FY 2025-26, recording a growth rate of 7.7% despite global uncertainties, geopolitical tensions, and trade disruptions. However, the economic environment for FY 2026-27 appears more challenging. Rising energy prices, inflationary pressures, slowing global demand, and climate-related risks are creating fresh concerns for policymakers. Against this backdrop, economists argue that…

  • LPG Cylinder Price Hike: Why Are LPG Prices Rising Despite OMC Losses?

    LPG Cylinder Price Hike: Why Are LPG Prices Rising Despite OMC Losses?

    Why Is This News Important? The Government of India has increased the price of domestic LPG cylinders by ₹29. This is the second major price revision after disruptions in global energy markets triggered by geopolitical tensions in West Asia. Even after the latest increase, Oil Marketing Companies (OMCs) continue to incur losses of nearly ₹700…

  • RBI Eases Foreign Borrowing Rules for PSUs and Banks to Boost Foreign Capital Inflows

    Why Is This News Important? The Reserve Bank of India (RBI) has announced new measures to encourage foreign capital inflows into the country. The central bank has eased borrowing norms for Public Sector Undertakings (PSUs) and banks, making it easier and more affordable for them to raise funds from overseas markets. The move comes at…

  • India’s GDP Growth Raised to 7.7% for FY26: What It Means for the Economy

    India’s GDP Growth Raised to 7.7% for FY26: What It Means for the Economy

    Why Is This News Important? India’s economy has ended FY26 on a strong note, with the GDP growth estimate revised upward to 7.7%. The revision reflects strong investment activity, resilient domestic demand, and continued economic momentum despite global uncertainties. For UPSC aspirants, the development is important because it relates to economic growth, macroeconomic stability, investment…

  • ATF Price Stabilisation Scheme: Government Fixes Jet Fuel Prices to Support Airlines

    Why Is This News Important? The Union Government has introduced a price stabilisation scheme for Aviation Turbine Fuel (ATF) to protect Indian airlines from sharp fluctuations in global fuel prices. Under the scheme, ATF prices have been fixed at levels slightly above current market rates. The move aims to reduce financial pressure on airlines and…

  • RBI’s Warning on Growth and Inflation: Why Global Conflicts Matter for India

    Why RBI’s Assessment Matters The Reserve Bank of India (RBI), in its Annual Report for FY26, has maintained a positive outlook on India’s economic growth. However, the central bank has also cautioned that geopolitical conflicts and wars could create short-term challenges for both economic growth and inflation. In today’s interconnected world, economic performance is influenced…

  • India’s Fertiliser Policy Challenge: Why Centre and States Must Work Together

    India’s Fertiliser Policy Challenge: Why Centre and States Must Work Together

    Why Fertiliser Policy Has Become a Major Concern Fertilisers have played a crucial role in improving agricultural productivity and supporting India’s food security objectives. However, concerns are growing over the excessive use of chemical fertilisers, particularly urea, and their long-term impact on soil health, water resources, and agricultural sustainability. The debate has gained attention as…

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