How Banks Create Money Through Loans: The Hidden Engine of the Economy
Introduction When you deposit money into a bank, you might think the bank simply stores it safely in a vault until you withdraw it. But in reality, something much more interesting—and powerful—happens behind the scenes. Banks don’t just hold money—they create it. This process, known as money creation through lending, is one of the most important yet misunderstood mechanisms in modern economics. It forms the backbone of how credit flows, how economies grow, and how financial crises can unfold....
8 min read →Balancing Power: How India’s Strategic Autonomy Shapes Growth, Security, and Global Influence
I. Introduction Imagine a young policy analyst in New Delhi, poring over classified cables: the UN is voting on a contentious resolution condemning sanctions on a major power. India must choose—vote with the U.S., with Russia, abstain, or propose a neutral text. The choice seems technical, but to the world it signals alliances, direction, and identity. This moment encapsulates India’s perpetual tightrope walk: asserting strategic autonomy while navigating pressure from global powers. This...
9 min read →The Digital Divide: Can Bharat Keep Up With India?
Introduction – Two Nations in One India is often celebrated as a rising digital powerhouse, with world-class IT hubs, global unicorns, and one of the fastest-growing digital economies. But beneath this glittering surface lies another reality—millions of Indians, especially in rural and marginalized regions, remain cut off from this transformation. This contrast between “India” (urban, connected, globalized) and “Bharat” (rural, traditional, underserved) has become a metaphor for the nation’s...
6 min read →Skill Development in India: Are We Preparing for Future Jobs?
Introduction – The Future of Work and India’s Dilemma India is entering a decisive phase in its economic journey. With more than 65% of its population under the age of 35, the country has a unique opportunity to become the global workforce hub of the 21st century. But this advantage comes with a serious question: Are India’s youth equipped with the skills needed for future jobs? In today’s world, where automation, artificial intelligence, green technologies, and globalized industries are...
5 min read →India’s Population Dividend: Opportunity or Demographic Burden?
Introduction – The Population Debate in India India recently surpassed China to become the most populous country in the world, with over 1.4 billion people. For some, this milestone represents a massive opportunity—a young workforce that could drive economic growth and innovation for decades to come. For others, it signals a looming crisis—strain on resources, rising unemployment, and pressure on infrastructure. This duality lies at the heart of the debate: Is India’s population a dividend...
6 min read →Geopolitics of Food Security
Food security today is no longer just about feeding populations. It is about maintaining stability, preserving sovereignty, and wielding influence on the world stage. Much like oil shaped geopolitics in the 20th century, food—especially grains like wheat, rice, and corn—is increasingly shaping the 21st. Nations that can produce, control, or restrict the flow of grain hold tremendous leverage over those that depend on imports. As climate change, war, and economic disruptions test the global...
6 min read →Luxury in the Age of Minimalism: Why Status Symbols Are Changing
Luxury has always been about more than material comfort. It has been about signaling identity, power, and belonging. From Roman emperors flaunting silk robes imported from the East to the glittering Rolls-Royce cars of the 20th century, the essence of luxury has historically been tied to excess—something rare, costly, and difficult to attain. Yet, in the 21st century, a quiet revolution is reshaping this age-old relationship. Minimalism, once seen as a countercultural rejection of...
6 min read →Inflation vs. Deflation: Which Is the Bigger Threat in 2025?
Few words in economics evoke as much anxiety as inflation and deflation. One conjures images of soaring grocery bills, shrinking savings, and eroded purchasing power. The other reminds us of collapsing prices, stagnant wages, and economic stagnation. Both are dangerous in their own right—but in 2025, which is the bigger threat? The global economy today is a strange mix: supply chains are recovering from pandemic shocks, energy markets remain volatile due to geopolitical conflicts, and central...
5 min read →Shadow Economies: How Informal Markets Run the World
When most of us think about “the economy,” we picture official statistics, government reports, stock market indices, and formal jobs with contracts. But beneath this visible world lies another economic system—one that is often overlooked, underestimated, or outright ignored. This is the shadow economy, also called the informal, underground, or black economy. It’s the vast network of unregistered businesses, street vendors, unlicensed labor, cash-only trades, and even illicit activities that...
6 min read →The Global Debt Crisis: Are We Sleepwalking Into a Financial Meltdown?
In 2024, the world crossed a milestone that should have jolted policymakers everywhere: global debt topped $315 trillion, a figure more than three times the size of the global economy. To put that into perspective, if every man, woman, and child on Earth were tasked with paying it off, each person would owe nearly $40,000—a staggering sum in a world where most people live on less than $10 a day. But debt is not inherently bad. Nations borrow to fund infrastructure, corporations take loans to...
6 min read →Stock Market Bubbles Through History: From Tulips to Tech Stocks
Few forces in human history capture the fragile balance between rational economics and irrational psychology like stock market bubbles. At their core, bubbles reveal how human greed, fear, and herd instincts can temporarily defy logic, only to come crashing down with devastating consequences. From 17th-century Holland’s Tulip Mania to the modern dot-com and tech stock explosions, bubbles have consistently reshaped societies, reallocated wealth, and rewritten financial regulations. But bubbles...
5 min read →The Fallout of 50% Tariffs: India–U.S. Tensions Escalate
1. Introduction: A Trade War in the Making? Trade has always been at the heart of U.S.–India relations. For decades, the two nations have engaged in negotiations, disputes, and occasional compromises over tariffs, market access, and investment rules. But the recent imposition of 50% tariffs has pushed tensions to a new level, sparking fears of a brewing trade war between the world’s two largest democracies. While Washington claims its tariffs are aimed at protecting domestic industries, New...
5 min read →India’s AI Leap with Massive GPU Expansion
1. Introduction: The Silent Arms Race of GPUs Artificial Intelligence is no longer a futuristic concept — it is the defining technology of the present. From self-driving cars to medical diagnostics and large language models like ChatGPT, the world is rapidly transforming under AI. But behind every breakthrough lies a critical resource: computing power. And at the heart of this power is the GPU (Graphics Processing Unit). Globally, tech giants have been racing to secure GPUs, treating them...
5 min read →Trump’s Tariffs and Trade Wars: What Really Happened?
In 2018, former U.S. President Donald J. Trump launched a dramatic shift in American economic policy by waging a global trade war, the likes of which had not been seen in decades. The primary weapon of this economic battle? Tariffs. These tariffs, mainly directed at China but also targeting allies like the European Union, Canada, and Mexico, were intended to curb trade deficits, bring back manufacturing jobs to the U.S., and punish what Trump called "unfair trade practices." But did it work?...
5 min read →Afghanistan, Taliban 2.0, and India's Strategic Dilemma
The return of the Taliban to power in Afghanistan in August 2021 marked a dramatic shift in South Asia’s geopolitical landscape. After two decades of U.S. military presence and efforts to build a democratic Afghan government, the sudden withdrawal left a vacuum that the Taliban swiftly filled. For India, this event has not only raised concerns about regional security but also posed a significant diplomatic and strategic challenge. The evolving dynamics of Taliban 2.0 — a seemingly more...
5 min read →The Green Revolution: Saving India from Famine or Creating Long-Term Problems?
The Green Revolution in India is often celebrated as a miracle of modern agriculture — a time when new technologies, high-yield seeds, and policy interventions turned a nation on the brink of famine into a self-sufficient food producer. For a country still recovering from colonial exploitation and facing population pressure in the 1960s, the Green Revolution appeared as the silver bullet. But over time, this miracle has come under scrutiny. Today, many are asking: Did the Green Revolution...
6 min read →How FOMO Drives Modern Consumerism
In a world where Instagram highlights, limited-edition drops, and influencer hauls dominate our feeds, the pressure to buy isn’t just economic—it’s emotional. This pressure has a name: FOMO, or the Fear of Missing Out. Originally coined to describe anxiety over social exclusion, FOMO has become a central force in consumer behavior, subtly (and sometimes aggressively) pushing people toward purchases they might not otherwise make. Whether it’s buying the latest smartphone, chasing flash sales,...
6 min read →Supply and Demand in Real Life: How Scarcity Affects Prices
Economics isn’t just a classroom subject—it’s a force that shapes our daily lives. Every time we buy a product, fill our gas tank, or choose between brands, we’re participating in an economic system guided by the forces of supply and demand. One of the most important and tangible consequences of this relationship is the effect of scarcity on prices. Understanding how supply and demand work in real life gives us a powerful lens to interpret rising grocery bills, housing shortages, fuel hikes,...
5 min read →The Power of Sanctions: Economic Weapons in Global Politics
In a world increasingly shaped by diplomacy and trade rather than open warfare, economic sanctions have emerged as one of the most powerful tools in international relations. From the U.S. sanctions on Iran to the West’s economic restrictions on Russia following its invasion of Ukraine, sanctions now serve as modern weapons of mass disruption. But what are sanctions? How do they work, and why are they so effective—or controversial? This blog explores the mechanics, history, impact, and growing...
4 min read →The Economics of Poverty: Understanding the Roots and Remedies
Poverty isn’t just about low income—it's a multidimensional issue that affects health, education, opportunity, and dignity. In economics, poverty is more than a social issue; it’s a consequence of systemic failures, inefficient policies, and economic structures that fail to distribute wealth fairly. Understanding the economics of poverty means analyzing why poverty exists, how it persists, and what economic tools can be used to alleviate it. This blog dives deep into the causes, consequences,...
5 min read →What Happens When One Player Has All the Power?
In an ideal market, competition ensures fair prices, innovation, and quality. But what happens when a single firm dominates an entire industry? That’s where monopolies come in—and they often bring market failure with them. Monopolies occur when one company controls the entire supply of a product or service, eliminating competition. This imbalance leads to inefficiencies, inflated prices, lack of innovation, and a poor deal for consumers. This blog will unpack how monopolies form, how they...
5 min read →Why Do Countries Go Into Debt? Understanding National Deficits
National debt is a term that regularly surfaces in economic discussions, political debates, and international headlines. But what exactly causes a country to go into debt? And is debt always a bad thing? This blog breaks down the concept of national debt and explains why governments borrow money, how deficits work, and what it means for the economy. What Is National Debt? National debt refers to the total amount of money that a country's government owes to creditors. It is the accumulation of...
4 min read →Inflation Explained: Causes, Effects, and How Governments Manage It
Inflation is a term you’ve probably heard countless times—whether in the news, in economic discussions, or even in everyday conversations about rising prices. But what exactly is inflation? Why does it happen, and how does it affect your wallet, the economy, and the world? More importantly, how do governments and central banks try to manage it? This blog breaks down inflation in simple terms, explores its causes and effects, and looks at the tools policymakers use to keep it in check. What is...
4 min read →Non Performing Assets (NPAs)
Introduction The Non-Performing Assets (NPAs) problem is a significant obstacle that the Indian banking system must overcome. NPAs, or nonperforming assets, are shorthand for loans that have not been repaid by the respective borrowers. The high number of nonperforming loans in the banking industry has major repercussions for the state of both the industry as a whole and the economy as a whole. In this piece, we will investigate the factors that have led to the rise of NPAs in India, as well...
2 min read →Cut Policy in Indian Budget
What are Cut Motions? Cut motions are a tool the opposition uses to limit government spending in the political and economic context of India. Although they are difficult to pass, these motions have the potential to lower the grant amount recommended for each ministry. There are three different kinds of cut motions: token cut motions, economy cut motions, and policy cut motions. Although each motion has a different function, they all strive to cut back on government spending. Policy Cut Motion...
4 min read →Geographical Indications
What are Geographical Indications? The term "geographical indication" (GI) refers to a type of intellectual property that identifies a product as coming from a particular geographical location and as possessing certain qualities, reputation, or characteristics that are primarily attributable to the geographic origin. Geographical Indications are also abbreviated as "GIs." The protection afforded by GI grants legal recognition and protection to the manufacturers of the product, so defending...
5 min read →Goods And Service Tax: GST
Introduction Goods and Services Tax (GST) is a value-added tax (VAT) that is applied to the sale of goods and services in India. It was introduced in 2017 and replaced several indirect taxes that were previously levied by the central and state governments, including the Central Sales Tax, VAT, and service tax. GST is levied on the supply of goods and services, and it is designed to be a comprehensive, destination-based tax that is applied at every stage of the supply chain. Under GST, there...
3 min read →Commercialisation of Agriculture: Colonial Period
Introduction During the colonial period, the commercialization of Indian agriculture was driven primarily by the needs and interests of the British Empire. The British government implemented a range of policies and regulations that aimed to increase agricultural production and make the Indian economy more dependent on exports to Britain. One of the key policies was the Permanent Settlement of 1793, which aimed to increase revenue for the British government by encouraging the growth of cash...
3 min read →What are Participatory Notes?
Participatory notes, also known as P-notes or offshore derivative instruments (ODIs), are financial instruments that are issued by foreign investors to Indian investors. These instruments allow Indian investors to invest in the Indian stock market without having to go through the time-consuming and costly process of registering with the Securities and Exchange Board of India (SEBI). Instead, the foreign investors who issue the P-notes are registered with SEBI, and the Indian investors who...
3 min read →State Bank of India
State Bank of India (SBI) is the largest public sector bank in India, with over 22,000 branches and 58,000 ATMs across the country. It was founded in 1806 as the Bank of Calcutta, and has since grown to become a leading financial institution in India, offering a wide range of banking and financial services to its customers. State Bank of India (SBI) in its modern avatar was formed in 1955 through the amalgamation of eight state-owned banks. These banks were the Bank of Bombay, the Bank of...
3 min read →Inclusive Development
Introduction Inclusive Development refers to including everyone in India's growth narrative. Growth without inclusiveness is hollow and futile. In terms of quantitative growth, India has made great strides, yet a significant portion of its people is still marginalised. India must prioritise inclusive policymaking so that everyone can participate in and benefit from progress. It is now well recognised that if a significant portion of society is marginalised and excluded, meaningful and lasting...
3 min read →Nanotechnology Sector in India
Introduction The utilisation of matter on an atomic, molecular, and supramolecular scale for industrial purposes is known as nanotechnology, or just nanotech. The initial and most popular definition of nanotechnology, currently known as molecular nanotechnology, focused on the specific technological objective of accurately manipulating atoms and molecules for the creation of macroscale objects. Governments have poured billions of dollars towards the study of nanotechnology because of the wide...
4 min read →Food Fortification
Introduction Fortification is the intentional addition of one or more micronutrients (vitamins and minerals) to a food or condiment in order to improve the nutritional quality of the food supply and provide a public health benefit with minimal risk to health. In addition to increasing the nutritional value of staple foods, the addition of micronutrients can restore micronutrients lost during processing. Fortification is an intervention supported by evidence that aids in the prevention,...
3 min read →Corporate Social Responsibility
Introduction Corporate social responsibility (CSR) is a self-regulating business model that enables companies to be socially accountable to themselves, their stakeholders, and the general public. By engaging in corporate social responsibility, also known as corporate citizenship, businesses can be conscious of the impact they have on the economic, social, and environmental aspects of society. CSR denotes that, in the normal course of business, a firm operates in ways that contribute...
3 min read →Central Bank Digital Currency
Introduction Money is no longer paper and coins. It is becoming increasingly digital, and an increasing number of central banks are contemplating the issuing of their own digital currencies. Digital currency is simply electronic money as opposed to physical currency. Central bank Digital currencies are the digital equivalents of a nation's physical currency, such as a digital dollar, euro, pound, or rupee. The central banks issuing and managing these digital currencies are national financial...
3 min read →Research and Development
Introduction As defined in the World Bank report titled "Innovation Policy - A Guide for Developing Countries,"innovation involves the process of creating a new idea in a given context and its successful dissemination into the society. It opens up new venues for economic growth and is necessary for inclusive social development. Innovation is useful only when an entrepreneur can find ways to commercialise the idea and deliver it to all sections of the society. Technological advancements have...
5 min read →Minimum Wages for Labour
Introduction The goal of minimum wages is to protect workers from unfairly low pay. They contribute to ensuring a just and equitable share of the fruits of progress for all, as well as a minimum living wage for all employed and in need of such protection. Minimum wages can also be part of a policy to combat poverty and reduce inequality, including inequality between men and women. 79 percent of workers were employed in establishments with fewer than ten employees. The central challenge of...
5 min read →Gig Economy
Introduction In a gig economy, temporary, flexible jobs are commonplace and companies tend to hire independent contractors and freelancers instead of full-time employees. A gig economy undermines the conventional economy of full-time employees, who often prioritise professional advancement. The rapidly burgeoning gig workforce is ushering in a new economic revolution globally. India is the new frontier of this revolution due to its demographic dividend of a half-billion labour force, the...
4 min read →Lumpy Skin Disease
Introduction LSD is caused by the lumpy skin disease virus (LSDV), which is a member of the poxviridae family and the capripoxvirus genus. Other members of the genus capripoxvirus include the sheeppox virus and the goatpox virus. The LSDV mostly affects cattle, including the cow, its offspring, and Asian water buffaloes. According to a 2021 study by the United Nations Food and Agriculture Organisation (FAO), LSD epidemics occur many years apart. According to the paper, neither the presence of...
3 min read →Jute Industry in India
Introduction India is the world’s biggest producer of jute , followed by Bangladesh. West Bengal, Odisha, Assam, Meghalaya, Tripura, and Andhra Pradesh are the main growing regions for jute. India's jute industry has been around for 150 years. Jute production is a labour intensive industry. In West Bengal alone, it employs roughly 2 lakh people, and there are 4 lakh people employed nationwide. The Golden Fibre The second-most common natural fibre in the world is jute. High tensile strength,...
2 min read →Zero Budget Natural Farming
Introduction Subhash Palekar, Maharashtra based agriculturist and Padma Shri recipient, popularised zero-budget natural farming (ZBNF), which refers to the process of growing crops without the use of chemical fertilisers, pesticides, or any other external materials. Farmers instead use low-cost locally sourced natural concoctions, inoculums, and decoctions made from cow dung, urine, jaggery, lilac, green chilies, and a variety of other natural ingredients. The term 'Zero Budget' refers to the...
2 min read →Banking Reforms
Introduction The history of both public and private banking in India is extensive. In the 18th century, the English Agency House was established in Calcutta and Bombay, marking the beginning of modern banking in India. In the early 19th century, three Presidency banks were established. After the implementation of limited liability in 1860, private banks and international banks joined the market. At the beginning of the 20th century, joint stock banks were introduced. In 1935, the presidency...
4 min read →Helicopter Money
Introduction This is a novel monetary policy tool aimed at reviving a faltering economy. It entails the printing of large amounts of money and distributing them to the general public. This term was coined by American economist Milton Friedman. It is a term that refers to a helicopter dropping money from the sky. Friedman used the term to signify "unexpectedly dumping money onto a struggling economy with the intention to shock it out of a deep slump."Under such a policy, a central bank...
2 min read →Production Linked Incentive Scheme
Introduction The Prime Minister's clarion call for a 'AatmaNirbhar Bharat' envisions policies to promote the country's manufacturing sector as efficient, equitable, and resilient. Growth in industrial goods production and exports will expose the Indian industry to more foreign competition and ideas, which will aid in improving its ability to innovate further. The promotion of the manufacturing sector and the establishment of a conducive manufacturing ecosystem will not only enable integration...
4 min read →River Water Interlinking
Introduction India, without a doubt, suffers greatly from the unequal distribution of water resources. Water availability varies significantly between the deserts of the west and the hills of the north. However, the real water management challenge in India is that the country's climate is characterised by monsoons. Half of the annual precipitation occurs over a 15-day period. Over 90% of river run-off occurs during the four monsoon months. This results in India being both water-rich and...
4 min read →Mining Industry
Introduction India has enormous mineral potential, as its prospective geology is broadly similar to Western Australia's, particularly in terms of iron ore, bauxite, coal, diamonds, and heavy minerals sand. India has designated 5.71 lakh square kilometres as an area of obvious geological potential (OGP), but only 10% of it has been explored and only 1.5% is being mined. Five major mineral-producing states, namely Odisha, Rajasthan, Andhra Pradesh, Chhattisgarh, and Karnataka, produce nearly...
4 min read →Cotton Textile Industry
Introduction Cotton is India's most significant commercial crop. It is widely considered the King of Textile Fibers, making major contributions to the national economy. It provides sustainable livelihoods for millions of rural and urban populations. Background The cotton textile industry is one of India's traditional industries. It was only a cottage industry throughout the ancient and mediaeval periods. India was famed across the globe for producing muslin, a particularly fine variant of...
3 min read →Fiscal Responsibility and Budget Management Act (FRBM)
Introduction The Fiscal Responsibility and Budget Management Act (FRBM) was passed in 2003. The Act's goal is to ensure intergenerational equity in fiscal management, long-run macroeconomic stability, better coordination of fiscal and monetary policy, and transparency in the government's fiscal operations. It establishes a legal and institutional foundation for fiscal consolidation. The Central Government is now required to take steps to reduce the fiscal deficit, eliminate the revenue...
2 min read →Modernization of Agriculture
Introduction Increase agricultural productivity, efficiency, and crop diversification by modernising agricultural technology. Create income and employment by implementing a paradigm shift that ensures food security while maximising agricultural value addition. Sectoral Issues The current yield levels of the majority of crops remain significantly lower than the global average. The primary causes are a lack of irrigation, the use of low-quality seeds, a lack of adoption of improved technology,...
4 min read →Financial Inclusion
Introduction Financial inclusion is defined as providing individuals and businesses with useful and affordable financial products and services that meet their needs – transactions, payments, savings, credit, and insurance – responsibly and sustainably. Financial inclusion has been identified as a necessary condition for the achievement of seven of the seventeen Sustainable Development Goals. The G20 reaffirmed its commitment to advancing financial inclusion globally and to implementing the...
4 min read →Blue Revolution
Introduction The Blue Revolution in India, also known as the Neel Kranti Mission, was initiated around 1985 ( seventh five year plan) by Dr. Arun Krishnan and Dr.Hiralal Chaudhari, also known as father of Blue Revolution. The Blue Revolution's multifaceted efforts are primarily focused on enhancing fisheries output and productivity from aquaculture and fisheries resources, both inland and marine. China presently leads in aquaculture output with a staggering 60 million tonnes per year, while...
4 min read →Sagarmala Programme
Introduction In India, the maritime sector has been the backbone of the country's trade and has grown exponentially over the years. The Government of India has launched the ambitious Sagarmala Programme to promote port-led development in the country, leveraging India's 7,500 km long coastline, 14,500 km of potentially navigable waterways, and strategic location on key international maritime trade routes. On March 25, 2015, the Union Cabinet approved the Sagarmala concept. A National...
3 min read →National Infrastructure Pipeline
Introduction Infrastructure is critical for the country's economic growth and poverty reduction. Adequate infrastructure in the form of roads and railways, ports, power, and airports, as well as their efficient operation, are required for the Indian economy to integrate with other economies around the world. A country's infrastructure has a direct impact on its economic and social growth. Many developed countries have made significant progress as a result of massive expansion of economic and...
3 min read →Monetary Policy Committee
Introduction The primary goal of the RBI's monetary policy is to maintain price stability while also pursuing growth. Price stability is a prerequisite for long-term growth. Section 45ZB of the amended RBI Act of 1934 empowers the central government to form a six-member Monetary Policy Committee (MPC) to determine the policy interest rate needed to achieve the inflation target. As per Section 45ZB, "the Monetary Policy Committee shall determine the Policy Rate required to achieve the...
4 min read →Financial Committees
Introduction Effective legislative control over government spending necessitates that the Parliament be satisfied that the appropriations have been used economically for the approved purposes within the framework of the grants. It should also conduct a thorough examination of the government's annual budget estimates in order to suggest economic and sound implementation of the plans and programmes embodied therein. Both of these functions are critical to ensuring that parliamentary oversight...
3 min read →Interlinking River Projects
Introduction Although Sir Arthur Thomas Cotton, a British irrigation engineer, proposed interconnecting India's rivers in 1858, the concept of interconnecting Indian rivers was revitalized just a few decades ago by M. Visveswarayya, K. L. Rao, and D. J. Dastur. The Indian Supreme Court directed the government to finish the river interconnection project within the next 12–15 years in 2002. The Government of India created a Task Force in response to this order, and scientists, engineers,...
4 min read →Gram Nyayalyas
In its 114th Report, the Law Commission of India proposed the establishment of Gram Nyayalayas to provide citizens with inexpensive and timely access to justice at their doorsteps. The Gram Nyayalayas Bill was enacted by Parliament on December 22, 2008, and the Gram Nyayalayas Act went into effect on October 2, 2009. The Act extends to the whole of India, except to the States of Nagaland, Arunachal Pradesh, Sikkim and to the tribal areas specified in parts of the Sixth Schedule to the...
3 min read →Feminization of Agriculture
Introduction If there were four women for every ten males in the agricultural sector in 1991, there were six women for every ten men in 2011. This phenomenon of growing female engagement, especially in agricultural labour, is referred to as the feminisation of the Indian agricultural workforce. Causes of Indian Agriculture Feminisation Poverty is a key element that forces women to work as agricultural labourers to augment their family's income. Women also work as unremunerated workers in...
4 min read →Regional Comprehensive Economic Partnership
Introduction The Regional Comprehensive Economic Partnership was introduced during the 19th Asean meet held in November 2011. The RCEP negotiations started during the 21st Asean Summit in Cambodia in November 2012. The Regional Comprehensive Economic Partnership (RCEP) is a free-trade agreement between the 10 Association of Southeast Asian Nations (Asean) members plus Australia, China, Japan, New Zealand and South Korea. It is worlds largest trade agreement. According to data by the World...
4 min read →Foreign Direct & Portfolio Investment
Introduction Capital Account records all international transactions of assets. An asset is any one of the forms in which wealth can be held, for example: stocks, bonds, Government debt, etc. Purchase of assets is a debit item on the capital account. If an Indian buys a UK Car Company, it enters capital account transactions as a debit item (as foreign exchange is flowing out of India). On the other hand, sale of assets like sale of share of an Indian company to a Chinese customer is a credit...
3 min read →Agricultural Infrastructure in India
Introduction Infrastructure is essential in agriculture at every stage, including input delivery, crop seeding, and post-harvest management. Planned investment in farm infrastructure is critical to increasing productivity and reducing post-harvest losses; this will also result in capacity development and increased revenue creation. Post-harvest losses in India are significantly greater due to a lack of essential agricultural infrastructure such as storage houses, pack houses, and a lack of a...
2 min read →Poverty in India - An Overview
Introduction Poverty is defined as the inability to satisfy basic needs. It is often seen as an economic problem, but a closer examination reveals that it also has a social, cultural, and political component. With generation after generation of impoverished families, it has now become a societal shackle that is impossible to break free from. People who are poor are unable to afford goods and services that might otherwise have assisted them in breaking free, which is why it is often assumed...
5 min read →What is Inflation?
Introduction Inflation is defined as an increase in the prices of goods and services such as food, clothes, housing, recreation, transportation, consumer staples, and so on. Inflation is defined as the average price change over time of a basket of goods and services. The opposite and rare fall in the price index of this basket of items is called ‘deflation’. Inflation is defined as a decrease in the purchasing power of a country's currency unit. This is measured in percentage. Types of...
5 min read →Reserve Bank of India
Under the Reserve Bank of India Act, the Reserve Bank of India was established on April 1, 1935, as the country's central bank. The Reserve Bank of India is in charge of overseeing the country's currency and credit systems via the implementation of monetary policy. Though originally privately owned, since nationalization in 1949, the Reserve Bank is fully owned by the Government of India. Preamble The Preamble of the Reserve Bank of India describes the basic functions of the Reserve Bank as:...
5 min read →Compulsory Licensing
Introduction Compulsory licencing is when a government permits another party to manufacture a patented product or process without the patent owner's approval or intends to use the patent-protected invention itself. It is one of the patent flexibilities contained in the WTO's TRIPS (Trade-Related Aspects of Intellectual Property Rights) Agreement. The TRIPS Agreement does not specify the grounds for justifying compulsory licencing. The Doha Declaration on TRIPS and Public Health, on the other...
3 min read →Money Laundering
Money laundering is the illicit practice of disguising huge sums of money obtained through illegal or criminal activities, such as drug trafficking or terrorist financing, as legitimate. The proceeds of illicit conduct are deemed unclean, and the process "launders" them to make them appear clean. Laundering money normally consists of three steps: placement, layering, and integration. Placement sneakily introduces "bad money" into the lawful financial system. Through a sequence of transactions...
4 min read →Planning: Nehruvian Idea vs Aatmanirbhar Bharat
If poverty and low standards continue, then democracy, for all its fine institutions and ideals, ceases to be a liberating force. It must therefore aim continuously at the eradication of poverty (…) In other words, political democracy is not enough. It must develop into economic democracy as well. — Nehru, 1952 Introduction: Nehruvian The Nehruvian model of development — based on the four pillars of Parliamentary democracy, secularism, economic planning for establishing a welfare estate and...
3 min read →Irrigation In India
According to the erstwhile Planning Commission, Irrigation projects in India are classified by the amount of 'Cultivable Command Area (CCA)' they cover. If their CCA is greater than 10000 hectares, between 2000 and 10000 hectares, or less than 2000 hectares, they are classified as Major. Minor Scope irrigation projects typically exploit both surface and groundwater sources. Surface water resources are used in the majority of large and medium-sized projects. Irrigation Techniques The...
4 min read →Introduction To Food Access
Food access is a goal that needs to be pursued in order to ensure food and nutritional security. Year after year, decade after decade, targets for achieving food access must be set. To ensure that these accesses are maintained indefinitely, short- and long-term measures must be taken. At the moment, three key food access points have been identified. Physical Accessibility Physical access requires producing enough food to feed the entire country. It entails producing enough food to feed...
2 min read →National Development Council
What is National Development Council? The Prime Minister presides over the National Development Council (NDC), also known as the Rashtriya Vikas Parishad, which is India's apex body for development decision-making and deliberation. It was established by Cabinet Secretariat Resolution in August 1952. It was intended to be a meeting place for India's Prime Minister and state Chief Ministers to deliberate and discuss plans and the planning process. The NDC is comprised of all Union Ministers,...
2 min read →The Planning Commission
The Planning Commission was established in response to the National Planning Committee's report from 1949, which emphasised the importance of economic and social planning for the entire country. The Planning Commission was established as a permanent body of experts by Cabinet Resolution in March 1950. As a result, the Planning Commission was an extra-constitutional, non-statutory body that worked under the direction of the National Development Council (NDC). The Indian Constitution makes no...
4 min read →Smart Cities in India
Cities are critical to the economic health of every country, including India's. By 2030, urban areas in India are predicted to contain 40% of the population and contribute around 75% of the country's GDP. This can be attributed to the country's rapid urbanisation. But this fast pace of urbanisation has created a slew of problems, including more slums, a declining level of living, environmental degradation, and city congestion. To address these problems, India's government has launched the...
2 min read →Finance Commission of India
The Finance Commission is established by Article 280 of the Constitution. Within two years of the constitution's inception, the President shall establish a Finance Commission, and thereafter at the end of every fifth year or at such earlier times as he deems necessary. The president will appoint the Finance Commission's chairman and four other members. Parliament may specify in law the qualifications that members of the commission must meet in order to be appointed, as well as the process by...
4 min read →Policies For Physically Challenged
A number of initiatives have been launched to support and promote the interests of people who are physically challenged. Stipends for Physically Handicapped Students Scheme This scheme provides monetary and other assistance to disabled students from kindergarten to postgraduate level. Blindness, low vision, leprosy-cured, hearing impairment, locomotor disability, mental retardation, and mental illness are all defined as disabilities under the Protection of Rights and Full Participation Act,...
2 min read →Poverty Alleviation Programmes
One of the main goals of the development planning process has been to eliminate poverty. The majority of the rural poor are agricultural wage earners, small and marginal farmers, and casual workers engaged in non-agricultural activities. A large proportion of the population is forced to seek employment invocations with extremely low levels of productivity and wages due to a lack of physical and social capital. The creation of jobs for the unskilled workforce has proven to be a major...
3 min read →Special Economic Zones (SEZs) in India
What is a Special Economic Zone (SEZ)? A special economic zone (SEZ) is a defined geographical area with well-defined boundaries that is located inside a local economy but separated from it with respect to special economic provisions. Businesses are encouraged to set up operations in SEZs and are provided with world-class infrastructure for the express purpose of producing and providing services for export. Items entering SEZs for the purpose of export promotion are generally exempt from...
3 min read →Tourism during CoVid-19
"Travel is fatal to prejudice, bigotry, and narrow-mindedness, and many of our people need it sorely on these accounts. Broad, wholesome, charitable views of men and things cannot be acquired by vegetating in one little corner of Earth all one's lifetime." - Mark Twain Tourism plays an vital role in social behaviorism, interactions, and is a strategic pillar in the economic growth of a nation. It is a vibrant, vast, dynamic and development-oriented industry. It connects several other sectors...
4 min read →India's Demographic Dividend
What does it take to make One Young India? 65% of India's population is below 35 years of age. We are a very young country and are going through a transition period where many young people will join the working population. It was this demographic transition that helped China achieve growth rates that are still difficult to match for most countries. But is India's youth adequately equipped to steer India's growth aspirations? Unfortunately, the situation seems grim at the moment but all is not...
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