Indian Economy

PERIODIC LABOUR FORCE SURVEY (PLFS): METHODOLOGY, KEY INDICATORS AND IMPORTANCE

The Periodic Labour Force Survey (PLFS), conducted by the NSO, tracks India's employment trends. Recently revamped to provide monthly data, it measures LFPR, WPR, and Unemployment Rates using Current Weekly and Usual Status, highlighting key shifts towards formalization and female participation.

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WINDFALL TAX ON DIESEL: MEANING, RATIONALE AND IMPACT ON INDIA'S ENERGY SECTOR

A windfall tax (SAED) targets supernormal corporate profits arising from external crises. Recently hiked to ₹14/litre on diesel, India utilizes this tool to stabilize domestic fuel supplies, offset excise cuts, and curb inflation amidst the 2026 global energy crisis.

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INTERNATIONAL LABOUR CONFERENCE (ILC): STRUCTURE, FUNCTIONS AND SIGNIFICANCE

The 114th International Labour Conference focuses on regulating the platform economy, advancing gender equality, and managing AI disruptions. India showcased its Four Labour Codes, highlighting a massive expansion in social security, reduced unemployment, and surging female workforce participation.

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FOREIGN INSTITUTIONAL INVESTORS (FIIS): GOVERNMENT SCRAPS CAPITAL GAINS AND WITHHOLDING TAX ON GOVERNMENT BONDS

To stabilize the rupee and bridge the balance of payments deficit, India has eliminated capital gains and withholding taxes on FII investments in government bonds via the Income Tax Amendment Ordinance 2026, boosting foreign debt inflows and lowering imported inflation.

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RBI MONETARY POLICY JUNE 2026: KEY DECISIONS, IMPLICATIONS FOR INDIAN ECONOMY

The June 2026 RBI MPC meeting maintained the repo rate at 5.25% while revising FY27 GDP growth down to 6.6% and inflation up to 5.1%. The RBI also introduced key capital inflow measures and is evaluating polymer currency notes.

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HOW DOES EL NIÑO THREATEN GLOBAL ECONOMIES AND INDIA'S GROWTH?

El Niño disrupts global weather patterns, suppresses the Indian monsoon, and triggers massive economic losses. It drives up headline inflation, devastates rain-fed agriculture, and permanently stunts GDP growth, demanding urgent structural investments in climate resilience and proactive early warnings.

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END OF CHEAP GLOBAL MONEY: IMPACT ON INDIA

The era of cheap global money is ending, triggering foreign capital outflows and Rupee depreciation. However, India's robust macroeconomic fundamentals, domestic market reliance, and recent inclusion in the JPMorgan global bond index provide vital resilience against global liquidity shocks.

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INDIA-OMAN CEPA: KEY PROVISIONS, TRADE BENEFITS & STRATEGIC SIGNIFICANCE

The India-Oman CEPA, operationalized on June 1, 2026, eliminates tariffs on 99.38% of Indian exports. It strengthens India’s energy security, boosts services and MSMEs, and provides a strategic, conflict-free trade gateway bypassing the volatile Strait of Hormuz.

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NITI AAYOG RELEASES “FUTURE OF INDIA’S SEMICONDUCTOR INDUSTRY” ROADMAP

NITI Aayog’s 2035 roadmap targets a $120–150 billion semiconductor value chain, aiming to cut India’s 95% import dependence. It outlines a $180 billion investment plan driven by a 5P strategy: Pioneering, Policy, Production, People, and Partnership.

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GOVERNMENT NOTIFIES TWO NEW SPECIAL ECONOMIC ZONES (SEZS) IN PUDUCHERRY

India’s SEZ 2.0 framework and Union Budget 2026-27 introduce concessional domestic sales and shift performance metrics to net positive growth. These reforms aim to boost global competitiveness while mitigating challenges posed by the OECD's fifteen percent Global Minimum Tax rules.

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COW PROTECTION LAW: BALANCING FAITH, LIVELIHOODS, AND CONSTITUTIONAL VALUES

The ban on cow slaughter in India triggers widespread constitutional debates over Article 48 versus fundamental rights, severely disrupting the agrarian economy, leather, and meat industries, while disproportionately affecting marginalized livelihoods and exacerbating the rural stray cattle menace.

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SUPREME COURT UPHOLDS RETROSPECTIVE GST ON ONLINE GAMING

The Supreme Court upheld a 28% retrospective GST on the full face value of online gaming bets and affirmed states' rights to ban such games. This shift to a turnover taxation model threatens the Real Money Gaming (RMG) industry's financial survival.

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