reduction in United States interest rates reshapes global capital movements and directly influences India’s financial landscape. Lower United States yields make emerging markets more attractive, potentially boosting foreign investment, easing borrowing conditions, and supporting growth through cheaper imports and improved liquidity. However, these benefits come with risks such as currency volatility, uncertain capital flows, export pressures, and inflationary spillovers. India must balance global monetary easing with domestic priorities—maintaining financial stability, strengthening structural reforms, and ensuring prudent macroeconomic management—to fully leverage opportunities while mitigating vulnerabilities.
Click to View MoreThe deletion of 2.7 million MGNREGS workers, linked to mandatory Aadhaar-based payments, has raised concerns of wrongful exclusion and erosion of the Act’s demand-driven rights. Critics argue technical errors removed genuine workers and call for optional technology, stronger audits and an inclusive, worker-centric approach.
Click to View MoreIndian federalism is competitive, with states vying for investment through reforms encouraged by NITI Aayog indices. This boosts innovation but risks regional inequality and unsustainable incentives. A balanced cooperative-competitive model is needed to pair healthy rivalry with equitable, sustainable national development.
Click to View MoreA G20 report by the World Inequality Lab warns that India’s wealth is heavily concentrated, with the top 1% holding 40.1% of national wealth while the bottom half owns only 6.4%. It urges G20 nations to impose a 2% global minimum tax on billionaires to curb inequality.
Click to View MoreIndia is developing a Climate Finance Taxonomy to guide sustainable investments and bridge a $170 billion annual climate finance gap by 2030. A CSEP report emphasizes that the taxonomy must be practical, inclusive, and aligned with domestic priorities while remaining credible to global investors. Key recommendations include supporting MSMEs, integrating adaptation finance, promoting indigenous innovations, and ensuring coordination between RBI, SEBI, and the Ministry of Finance. The framework should be dynamic, evolving with technology and market needs to effectively channel finance toward India’s real climate goals.
Click to View MoreThe US Federal Reserve recently cut its key interest rate by 0.25%, signaling two more cuts this year to support its slowing labor market. This move impacts India by influencing capital flows, currency value, borrowing costs, and inflation. While lower global rates can boost growth and investment, India faces risks like currency volatility, imported inflation, and banking sector stress. A balanced approach with monetary policy, fiscal prudence, and structural reforms is essential to leverage opportunities while safeguarding economic stability.
Click to View MoreIndia must reform outdated land-use planning to make cities true economic growth hubs. Achieving the $30 trillion goal and Net Zero target needs cities with job-linked visions, regional planning, Natural Resource Budgeting, and Climate Action Plans that ensure sustainable, resilient, and holistic urban growth.
Click to View MoreThe National Blockchain Framework (NBF), an initiative by MeitY, provides secure Blockchain-as-a-Service, powered by the Vishvasya Blockchain Stack. This indigenous technology aims to foster an Aatmanirbhar Digital India through decentralized, trusted, and accountable governance. Its applications, including Certificate Chain, Property Chain, and Judiciary Chain, are designed to enhance transparency and combat fraud.
Click to View MoreNITI Aayog's Women Entrepreneurship Platform (WEP) launched the 'WE Rise Initiative,' marking a powerful push for women's economic empowerment. Designed around the 'Three Ps'—Patronage, Partnership, and Practice—this digital platform provides customized mentorship and financial linkage to high-potential women-led enterprises.
Click to View MoreThe 2025 Economics Nobel honored Joel Mokyr for showing sustained growth needs a constant feedback loop between theoretical and practical knowledge, mass skilling, and societal openness. Philippe Aghion and Peter Howitt formalized Creative Destruction, demonstrating that temporary monopoly power fuels competitive, cyclical innovation and progress.
Click to View MoreRetail inflation in India fell to a 99-month low of 1.54% in September 2025, mainly due to falling food and fuel prices. This marks the lowest level since 2017 and is below the RBI’s 2–6% comfort range. While consumers benefit from lower prices and improved purchasing power, persistently low inflation may signal weak demand and affect farmers’ income.
Click to View MoreThe Swadeshi Movement, rooted in India’s fight against colonial economic exploitation, emphasized using indigenous goods and rejecting foreign products. While it played a crucial role in uniting people during the freedom struggle, its post-independence influence led to protectionist economic policies. In modern times, Swadeshi has re-emerged through initiatives like Make in India and Aatmanirbhar Bharat
Click to View More
© 2025 iasgyan. All right reserved