Tag: Fiscal Policy

  • 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…

  • 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…

  • India’s GDP Growth Remains Strong, But Economic Challenges Lie Ahead

    India’s economy has once again demonstrated resilience by recording strong growth despite global uncertainties and geopolitical tensions. According to recent estimates, India’s GDP grew by 7.7% in FY 2025-26, making it one of the fastest-growing major economies in the world. However, while the headline growth numbers appear encouraging, policymakers are becoming increasingly cautious about the…

  • 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…

  • 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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