Trickle-down economics is a theory that suggests benefits given to the rich and businesses—like tax cuts and incentives—will eventually reach the poor through job creation and economic growth. In India, this approach gained importance after the 1991 liberalization, leading to higher GDP but also rising inequality. While economic reforms boosted investment and infrastructure, wealth concentration limited its impact on lower-income groups. To ensure balanced growth, India now focuses on combining market-driven policies with welfare and inclusion measures such as MGNREGA, PM-KISAN, and digital empowerment initiatives.
Click to View MoreThe Reserve Bank of India (RBI) manages rupee depreciation through tools like selling US Dollars and adjusting interest rates, addressing factors like trade deficits and capital outflows. A weaker rupee boosts exports but exacerbates inflation and increases debt costs, crucial for India's economic stability.
Click to View MoreThe GST reform aims to simplify the indirect tax regime, reduce compliance costs, and address the inverted duty structure. Despite potential inflation and revenue concerns, this reform is crucial for tax administration, formalization, and cooperative federalism.
Click to View MoreThe 56th GST Council meeting approved a simplified two-tier tax structure, scrapping old slabs, to make goods and services more affordable. The "Next-Generation GST Reforms" aim to boost consumption, support key sectors, and streamline the tax system for a more transparent Indian economy.
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