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GS Paper 3 Economy

CENTRAL BANK DIGITAL CURRENCY (CBDC): MEANING, SIGNIFICANCE, AND CHALLENGES

The Central Bank Digital Currency (CBDC) pilot marks a shift toward sovereign digital fiat, offering efficient targeted welfare and settlements. While promising, the RBI must address privacy concerns and cybersecurity through holding limits and legislative safeguards to ensure a resilient digital economy.  

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ANNUAL SURVEY OF INCORPORATED SERVICES SECTOR ENTERPRISES (ASISSE)

The National Statistical Office (NSO) launched ASISSE to bridge data gaps in the formal services sector using GSTN-backed information. This tech-driven survey enhances GDP calculation precision and evidence-based policy, marking a monumental step toward data-driven governance and modernising the Indian economy.

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WEST ASIA CRISIS: A WAKE-UP CALL FOR INDIA'S ENERGY SECURITY & ECONOMY

To mitigate geopolitical risks and 89% oil import dependency, India must pivot toward energy sovereignty. By scaling ethanol blending, Bio-CNG, and PM PRANAM, the nation can replace costly imports with domestic, low-carbon alternatives, ensuring long-term macroeconomic stability and Atmanirbharta.

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WINDFALL TAX REINSTATED: INDIA'S STRATEGY AMIDST THE 2026 GLOBAL ENERGY CRISIS

To combat the 2026 West Asian oil crisis, India slashed excise duties to lower consumer costs and reinstated windfall taxes on fuel exports. This strategy effectively checks inflation, prevents domestic shortages, and generates revenue to fund critical energy subsidies. 

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INDEX OF EIGHT CORE INDUSTRIES (ICI) EXPLAINED

February 2026’s 2.3% core growth reveals a divergence: infrastructure-led expansion in steel and cement versus contractions in hydrocarbons. Achieving stable growth requires addressing energy vulnerabilities, sustaining capital expenditure, and integrating green hydrogen to align industrial output with Net-Zero targets.

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