Imported Inflation

ECONOMIC STABILISATION FUND TO SHIELD INDIA FROM GLOBAL SHOCKS

India has established a ₹57,381 crore Economic Stabilisation Fund (ESF) via Supplementary Grants to counter global headwinds like oil shocks, maintaining a 4.4% fiscal deficit for 2025-26. This buffer shields the economy while long-term energy independence requires accelerating green transitions. 

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RUPEE BREACHES 90: CRISIS OR OPPORTUNITY FOR THE INDIAN ECONOMY?

The rupee’s fall past 90 reflects a strong US dollar, FPI outflows and a widening trade deficit. While it raises imported inflation and debt costs, it aids exports like IT and pharma. The RBI follows a managed float, using forex reserves to limit volatility and maintain economic stability.

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