Current Affair Category: Indian Economy

The following notes synthesize the core arguments regarding the disconnect between aggregate GDP growth and individual economic prosperity. 1. The Growth-Prosperity Gap Ranking vs. Reality: Nominal GDP rankings (measured in USD) are often influenced by currency fluctuations and statistical revisions rather than deep structural transformation. Skewed Distribution: The top 1% now accounts for roughly 22.6% […]

Why in News ? The Reserve Bank of India’s (RBI) partial easing of curbs in the offshore non-deliverable forwards (NDF) market are not likely to change the central bank’s stance on the net open position for the Indian rupee (NOP-INR), according to market participants, as geopolitical uncertainties, along with persistently elevated Brent crude prices, do […]

India’s GDP Ranking & IMF Outlook 2026 1. Current Status (The Global Shift): IMF Outlook 2026: India has slipped from the world’s 4th largest economy to the 6th position. Comparative GDP (in USD Trillion – 2026 Projection): USA: $32.38 T China: $20.85 T Germany: (Leader of the mid-pack) Japan: $4.38 T UK: $4.27 T India: […]

This analysis is based on Monthly Per Capita Consumption Expenditure (MPCE) data, adjusted for inflation to determine real growth rates. Key Observations: Role of Rural India: Historically, cities were considered the primary engines of consumption. However, in several states, Rural Consumption has now caught up with or surpassed urban consumption growth. Basis of Comparison: The […]

Why is it in the news? The Indian government is set to launch a ₹2.5-lakh-crore credit guarantee scheme in April 2026. This initiative is a proactive response to the economic fallout from the escalating West Asia crisis, specifically the conflict involving the United States, Israel, and Iran. Key  Issues: The crisis in West Asia has […]

The Bharat Tribes Fest 2026 is in the news as it concluded its 19-day run at Sunder Nursery, New Delhi, on April 6, 2026. Organized by the Ministry of Tribal Affairs and TRIFED, the event serves as India’s premier platform for showcasing tribal heritage and integrating tribal economy with mainstream markets. Key Features of Bharat […]

A Non-Deliverable Forward (NDF) is a critical instrument in the world of international finance, especially for businesses and investors dealing with “restricted” currencies. Since these currencies cannot be easily traded outside their home country due to government regulations (capital controls), the NDF allows parties to hedge risk without ever actually touching the restricted currency. Mechanism […]

Why in the News? The Bill was introduced in the Lok Sabha on March 25, 2026, but the Union government recently deferred discussion on it due to “legislative priorities.” Its introduction has sparked a massive outcry from Opposition parties and civil society, particularly in Kerala, where Assembly elections are scheduled for April 9, 2026. What […]

Principal Purpose Test (PPT) : The Principal Purpose Test (PPT) is a specific rule introduced under BEPS Action Plan 6 to stop “Treaty Shopping.” Treaty Shopping: When a company from Country A sets up a “shell company” in Country B just to use Country B’s favorable tax treaty with India. How the PPT “Test” Works? […]

The transition from the 64-year-old Income-tax Act, 1961, to the Income-tax Act, 2025, and the aggressive regulation of Synthetically Generated Information (SGI) mark a shift towards a “Digital-First” legislative framework in India. Economy: The Income-tax Act, 2025 : The replacement of the 1961 Act is aimed at reducing litigation and simplifying the tax language for […]