Category: Economy
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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…
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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…
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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…
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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…
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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…
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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…
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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…
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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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Agricultural Subsidies in India: Balancing Farmer Welfare and Economic Sustainability
Why the Subsidy Debate Matters Agriculture remains the backbone of rural livelihoods in India. To support farmers and ensure food security, governments have traditionally provided various subsidies and financial assistance. These include: While these measures have played an important role in protecting farmers, questions are increasingly being raised about their long-term sustainability and effectiveness. The…
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India’s Proposed Anti-Sanctions Framework: Protecting Economic Sovereignty in a Fragmented World
Why the Debate Has Emerged Recent geopolitical developments have highlighted a growing challenge for countries engaged in global trade: the increasing use of unilateral sanctions as a foreign policy tool. In response, India is exploring legal mechanisms to protect domestic businesses from the impact of foreign sanctions that are not approved under international law. The…
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