Category: Economy
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Unseen Labour: The Human Cost of Artificial Intelligence
AI runs on hidden human labour. Ghost workers face low pay, harsh conditions, and exploitation—demanding urgent ethical reforms. This blog is based on today’s editorial “Unseen Labour, Exploitation: the Hidden Human Cost of Artificial Intelligence” by Nivedita S., The Hindu, 17 September 2025 and is useful for UPSC Mains answer writing, especially GS Paper II, III,…
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Why India’s Rates are Falling but Yields are Rising?
Context: The yield on India’s 10-year benchmark government bond has surged, climbing over 20 basis points since the last RBI rate cut in June. This divergence from the expected pattern points to deeper concerns in the market beyond just monetary policy. What is the relationship between central bank interest rates and government bond yields in…
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PLI Scheme for White Goods
Context: The Ministry of Commerce and Industry recently announced the re-opening of the application window for the Production-Linked Incentive (PLI) Scheme for White Goods (Air Conditioners and LED Lights). What is the PLI Scheme for White Goods? The Production-Linked Incentive (PLI) Scheme for White Goods is a central government initiative designed to boost domestic manufacturing…
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Bairabi-Sairang Railway Line: A Historic Gateway Empowering Mizoram’s Growth
Context: The inauguration of the Bairabi-Sairang railway line is a landmark in transforming a landlocked state like Mizoram into a gateway for trade, tourism, and integration. About the Bairabi-Sairang Railway Line The Bairabi-Sairang railway line, inaugurated in September 2025 by Prime Minister, marks Mizoram’s first connection to India’s national railway grid. Length & Infrastructure: ~51…
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MIT’s Solar-Powered Atmospheric Water Harvester
Context: In a world where over 2.2 billion people lack access to safe drinking water, a new device developed by scientists at MIT offers a revolutionary solution: extracting clean water directly from the air using solar energy, without any external power source. What is the device about? The device is a passive atmospheric water generator…
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Transportation in Agriculture
Context: The recent closure of the critical Srinagar-Jammu National Highway for 13 days due to heavy rains and landslides triggered a crisis for Kashmir’s horticulture sector. In response, the Indian Railways announced a daily time-tabled parcel train service from Budgam in Kashmir to Adarsh Nagar in Delhi. What are the challenges in agricultural downstream linkages?…
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Global Military Spending vs. Sustainable Development
Context: With global military spending hitting a record $2.7 trillion in 2024 (SIPRI), the UN warns that excessive focus on arms is diverting resources from urgent priorities like poverty eradication, climate adaptation, and healthcare, especially as the SDG annual financing gap stands at $4 trillion. How do high military expenditures affect the development priorities? The…
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Interest-Free Capex Loans to States
Context: In a significant move to sustain India’s economic momentum, the Centre will continue its no-interest-bearing, 50-year capital expenditure (capex) loan scheme to states in the coming years. What is the Scheme for Special Assistance to States for Capital Investment (SASCI)? The Scheme for Special Assistance to States for Capital Investment (SASCI) is a central…
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India’s Road to FTAs
Context: Israeli Finance Minister Bezalel Smotrich is visiting India from September 8-10, 2025, to finalise and sign a Bilateral Investment Treaty (BIT), a pact that has concluded negotiations and is ready for signature. What are the recent Bilateral FTAs signed by India? India’s FTA strategy has been revitalised post-pandemic, focusing on agreements that align with…
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Trade Agreement Impasse over Agriculture
No Farm Trade Pact at Cost of Farmers Context: The disagreements between India and the US have been significantly fueled by contentious agricultural trade issues, with India’s protective measures for its farmers clashing with US demands for greater market access. India’s primary reason for withdrawing from the Regional Comprehensive Economic Partnership (RCEP) in 2019 also…
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Real Estate Investment Trusts (REITs) in India: A Positive Growth Avenue
Context: India’s REIT market is entering a rapid growth phase, with at least one new REIT expected annually over the next 3–5 years. Rising occupancies, demand from Global Capability Centres, logistics and policy reforms (GST rationalisation and relaxed foreign ownership norms) are making REITs a key driver of real estate financing and investment opportunities in…
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Youth Unemployment Conundrum
Context: Recent data from the Periodic Labour Force Survey (PLFS) reveals a concerning trend: a decline in the Labour Force Participation Rate (LFPR) and Worker Population Ratio (WPR), coupled with a rise in the Unemployment Rate (UR), particularly among youth (15-29 years). Why is youth unemployment a concern? Youth unemployment is not just an economic…
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GST Reforms 2025
Context: Recently the GST Council approved India’s most comprehensive tax reform since 2017, replacing the previous four-slab GST system with a simplified three-slab structure. What Are the Recent Reforms Made in the GST? Simplification of GST rate slabs from four (5%, 12%, 18%, 28%) to three: 5% for essentials, 18% as the standard rate, and…
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GST 2.0: India’s Tax Revolution
GST 2.0 simplifies rates, eases family burdens, supports farmers, boosts industries, and strengthens India’s journey towards Viksit Bharat 2047. Introduction In his article, “GST 2.0 is a Landmark in India’s Tax Journey” published in The Hindu on 5 September 2025, Chandrajit Banerjee described the reforms made at the 56th GST Council meeting as a “defining…
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State of the Sector Report on FPOs (SoFPO)
Context: According to the latest State of the Sector Report on FPOs (SoFPO) released by the National Association for FPOs (NAFPO), Samunnati, and the Rabo Foundation, Maharashtra has emerged as the state with the most favourable ecosystem for Farmer Producer Organisations (FPOs) in 2024. More on News It replaced Madhya Pradesh, which slipped to the…
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Tariffs Test Autonomy: India as America’s Pressure Point
US tariffs on Indian exports test Delhi’s sovereignty. This essay explores American motives and India’s balanced response strategy. Introduction Relations between India and the United States are at one of their lowest points in decades. Recent tariffs on Indian exports, together with sharp words from Washington, have shaken confidence in this strategic partnership. Some, such…
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Horticulture Push: Powerful Pathway to Farm Diversification and Higher Incomes
Context: India’s farm sector is witnessing a policy and market shift from cereals to high-value horticulture, as highlighted in the RBI Bulletin. With states like Andhra Pradesh doubling subsidies for fruit crops in 2025–26 and Himachal Pradesh adopting geothermal storage for apples, horticulture is emerging as a key driver of farm incomes, nutrition, and employment…
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Vikram 3201: India’s Chip Leap
ISRO’s Vikram 3201, India’s first 32-bit space chip, boosts self-reliance and marks a leap in semiconductor ambitions. Introduction On the 3rd of September 2025, Vasudha Mukherjee asked a vital question in Business Standard: “Where Does India’s Vikram 32-Bit Microprocessor Stand Against Global Peers?” Her article notes that the Vikram 3201, designed by the Indian Space…
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Inflation Targeting
Context: The Reserve Bank of India (RBI) is undertaking a crucial five-year review of its monetary policy framework, sparking a significant public debate. At the heart of this review is the efficacy of the Inflation Targeting (IT) regime, adopted in 2016, which has been a cornerstone of India’s economic policy. What is Inflation Targeting? Inflation…
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Cash Transfer Revolution
Context: The Haryana cabinet’s recent approval of the Deen Dayal Laado Laxmi Yojana, promising ₹2,100 per month to women, is part of a significant national trend where India has witnessed a remarkable surge in cash transfer programs targeted at women, growing from virtually nothing in 2018 to schemes now reaching over 130 million women and…