Category: Economy

Vegetable Oil Security: India’s Strategic Push for Self-Reliance Context: In an unusual shift, Indian importers have purchased a record 150,000 metric tons of soyoil from China, driven by steep discounts amid a supply glut, undercutting traditional suppliers like Brazil and Argentina. What are vegetable oils, and where are they generally obtained from?  Vegetable oils are…

Context: The 2025-26 Union Budget raised the Foreign Direct Investment (FDI) cap in insurance to 100%, building on the 2021-22 hike to 74%. More on News However, Finance Ministry data (December 2024) reveals only 4 out of 19 life insurers and 0 out of 20 general/health insurers utilised even the 74% limit.  This tepid response…

Context: In recent decades, India’s formal manufacturing sector has seen a sharp rise in contractual employment, with contract workers now making up 40.7% of the workforce (up from 20% in 1999-2000) as per Annual Survey of Industries (ASI) data. Why Are Contractual Workers Preferred in Formal Industries in India? Cost-Cutting: Contract workers are cheaper—employers save…

Context: US President Donald Trump recently signed the Guiding and Establishing National Innovation for U.S. Stablecoins Act (Genius Act) into law, marking a significant milestone in cryptocurrency regulation. More on News The Act establishes the first federal regulatory framework for stablecoins—digital assets pegged to traditional currencies like the US dollar.  By ensuring transparency, stability, and…

Context: The RBI released the Financial Inclusion Index (FI-Index) for March 2025, assigning a score of 67, up from 64.2 in 2024. The index reflects broad progress in financial access, usage, and quality across India. What is the Financial Inclusion Index? It is a comprehensive quantitative measure designed to capture the extent of financial inclusion…

GST reform and unfinished business in tobacco control  Context: With the GST compensation cess set to expire in March 2026, there is growing concern among public health experts that tobacco could become even more affordable, undermining India’s health goals and economic burden mitigation efforts. Why is tobacco taxation a public health concern under GST? Tobacco…

Can a G.I. tag prevents cultural misappropriation? Context: Recently , at its Spring/Summer 2026 menswear show in Milan, Italian luxury brand Prada unveiled footwear inspired by India’s Geographical Indication (GI)-tagged Kolhapuri chappals, sparking accusations of ‘cultural misappropriation’. Why did the Prada-Kolhapuri chappal controversy raise questions of cultural appropriation? On June 25, 2025, Prada showcased leather…

Reforming Social Protection with Multidimensional Indices Context: India’s poverty measurement has evolved from pre-independence subsistence-based estimates to modern multidimensional frameworks. This shift recognises poverty as a complex interplay of deprivations across health, education, and living standards, not just income. What Is the Multidimensional Poverty Index (MPI) and Why Was It Introduced? The Multidimensional Poverty Index…

The truth about poverty in India Context: In April 2025, the Government of India issued a press release titled “India’s Triumph in Combating Poverty”, citing the World Bank’s Poverty and Equity Brief which stated that 171 million Indians were lifted out of extreme poverty in the last decade.  More on News Earlier this month, the…

Centre approves South Asia unit of International Potato Centre at Agra Context: The Union Cabinet has approved the establishment of the South Asia Regional Centre of the International Potato Center (CIP) in Singna, Agra district, Uttar Pradesh.  About CIP Founded in 1971 and headquartered in Lima, Peru. CIP is a leading research-for-development organisation dedicated to…

The middle class seems missing from our growth story Context: India’s economy posted a strong 7.4% year-on-year growth in Q4 of FY 2024–25, and is expected to grow at 6.5% for the full fiscal year.  More on News While this marks a moderation from the 9.2% expansion recorded in 2023–24, India remains one of the…

India breaks into top 100 in global SDG rankings Context: India has made a significant leap in its journey toward sustainable development, securing the 99th spot out of 167 countries in the 2025 Sustainable Development Goals (SDG) Index, released by the United Nations Sustainable Development Solutions Network.  What are the Key Findings? First time in…

Inflation falls but not unemployment Context: India’s inflation fell to 2.8% in May 2025, earning the RBI praise for economic management. However, rising unemployment and slowing GDP growth paint a more troubling picture. What are the Impacts? Inflation Drops, But Unemployment Rises: According to the Periodic Labour Force Survey (PLFS), India’s unemployment rate rose from…

Poverty Levels, Food and Fertiliser Subsidies Context: As the NDA government completes 11 years at the helm, it’s an opportune time to review India’s macroeconomic performance, welfare progress, and structural challenges that lie ahead. A comparison with the United Progressive Alliance (UPA) era from 2004 to 2014 also offers useful context for India’s evolving growth…