Indian Economy Current Affairs Archives | Page 2 of 3

New CPI Series 2024 Explained:

Why in News?

The Ministry of Statistics and Programme Implementation (MoSPI) has introduced a new Consumer Price Index (CPI) series with base year 2024=100. According to the latest data, India’s retail inflation stood at 2.75% in January 2026 (year-on-year), reflecting changes in consumption patterns and economic structure.

What is CPI?

Consumer Price Index (CPI) measures the average change in prices of goods and services consumed by households.
It is the most important indicator of inflation in India.
Used by the Reserve Bank of India (RBI) for monetary policy decisions.

Key Changes in New CPI Series (Base Year 2024)

1. Change in Base Year

Updated from 2012 → 2024
Reflects latest consumption patterns of households.

2. Weight Realignment

Reduced weight: Food & beverages
Increased weight: Services, Housing

3. Expanded Consumption Basket

Total items increased:
- From 299 → 358 items
  - 308 goods
  - 50 services

4. New Items Added

Online streaming services , Rural housing , Value-added dairy products, Babysitting services, Fitness equipment

5. Inclusion of Rural House Rent

First-time inclusion
Improves representation of rural consumption patterns

6. Updated Classification System

Now follows COICOP 2018 classification
Shift:
- From 6 groups → 12 divisions

To know more about Consumer Price Index from exam point of view, Click here

New CPI Series 2024 Explained: Read More »

RBI Keeps Repo Rate at 5.25% – MPC Maintains Neutral Stance

Why in News?

The Reserve Bank of India (RBI), in its first monetary policy meeting of FY 2026–27, decided to keep the repo rate unchanged at 5.25%. The decision was taken unanimously by the Monetary Policy Committee (MPC) under Governor Sanjay Malhotra. The RBI also retained its ‘neutral’ policy stance, indicating flexibility in future actions

Key Highlights of Monetary Policy (FY27)

Repo Rate: 5.25%
Standing Deposit Facility (SDF): 5.00%
Marginal Standing Facility (MSF): 5.50%
Bank Rate: 5.50%

These rates are crucial tools used by RBI to regulate liquidity and inflation in the economy.

What is Monetary Policy Committee (MPC)?

Established under the RBI Act, 1934 (amended in 2016)
Composition: 6 Members
- 3 from RBI
- 3 nominated by Government of India
Chairperson: RBI Governor
Meetings: At least 4 times a year

Objective:

Maintain price stability
Achieve inflation target of 4% (±2%)
Support economic growth

What is Neutral Policy Stance?

A neutral stance means RBI is not biased toward increasing or decreasing interest rates.

Key Features:

Equal focus on inflation control and growth
Decisions depend on future economic data
Provides policy flexibility

Important Policy Rates

Repo Rate

Repo (Repurchase Option) Rate is the rate at which RBI lends money to commercial banks.

Impact:

Increase in Repo Rate:
- Loans become expensive
- Reduces money supply
- Controls inflation
Decrease in Repo Rate:
- Loans become cheaper
- Boosts investment & consumption
- Promotes economic growth

SDF (Standing Deposit Facility):

Rate at which banks deposit surplus funds with RBI (without collateral)

MSF (Marginal Standing Facility):

Emergency borrowing window for banks from RBI

Bank Rate:

Long-term lending rate of RBI

To know more about Monetary Policy committee from exam point of view, Click here

RBI Keeps Repo Rate at 5.25% – MPC Maintains Neutral Stance Read More »

PLFS 2025: Key Highlights of India’s Labour Data

Leave a Comment / Daily Current Affairs, Indian Economy Current Affairs / PSC Chronicles Team

Why in News:

Ministry of Statistics and Programme Implementation (MoSPI) has released the Periodic Labour Force Survey (PLFS) Annual Report 2025, providing crucial insights into employment trends in India

Key Findings of PLFS 2025

Unemployment Rate (UR): Remained stable at 3.1%
Labour Force Participation Rate (LFPR): Stood at 59.3%
- Indicates proportion of people working or seeking work
Worker Population Ratio (WPR): Recorded at 57.4%
- Shows percentage of employed population

What is PLFS?

Periodic Labour Force Survey (PLFS) is India’s main survey for employment and unemployment data.
Launched in 2017.
Conducted by the National Statistical Office (NSO) under MoSPI.

Frequency of PLFS

Quarterly Reports:
- For urban areas
- Based on Current Weekly Status (CWS)
Annual Reports:
- For both rural and urban areas
- Based on Usual Status

To know more about Periodic Labour Force survey, Click here

PLFS 2025: Key Highlights of India’s Labour Data Read More »

Iran War and Stagflation Risks

Leave a Comment / Daily Current Affairs, Indian Economy Current Affairs / PSC Chronicles Team

Why in News?

The ongoing Iran War (2026) has created disruptions in global energy supplies, especially oil. This has raised concerns among economists about a possible stagflation scenario, which combines inflation with economic slowdown.

What is Stagflation?

Stagflation is a rare economic condition where:
- Economic growth is slow or stagnant
- Unemployment is high
- Inflation is high simultaneously

Impact of Iran War on Global Economy

The conflict has affected oil supply routes and production.
Leads to increase in global crude oil prices.
Causes higher fuel and transportation costs worldwide.
Triggers inflationary pressures in many countries.
May slow down global economic growth due to rising costs.

To understand more about Stagflation, Click here

Iran War and Stagflation Risks Read More »

India to feature in World Bank B-READY Report 2026

Leave a Comment / Daily Current Affairs, Indian Economy Current Affairs / PSC Chronicles Team

Why in News?

India will be included in the World Bank’s Business Ready (B-READY) Report 2026.

B-READY (Business Ready)

B-READY (Business Ready) is the new flagship report of the World Bank.
Launched in 2024, replacing the Ease of Doing Business (EoDB) Index

A comprehensive framework to assess:

Business environment
Investment climate
Regulatory quality

https://www.business-standard.com/industry/news/india-may-face-challenges-on-a-few-parameters-in-wb-s-b-ready-report-gtri-124123100579_1.html

India to feature in World Bank B-READY Report 2026 Read More »

National Monetisation Pipeline (NMP) 2.0 Launched: ₹16.72 Lakh Crore Asset Monetisation Plan

Leave a Comment / Daily Current Affairs, Indian Economy Current Affairs / PSC Chronicles Team

Why in News?

Union Finance Minister has launched National Monetisation Pipeline (NMP) 2.0. It outlines a five-year roadmap (FY 2026–2030) to monetise public infrastructure and attract private investment.

Key Highlights:

Total Monetisation Target: ₹16.72 lakh crore
Time Period: FY 2026–FY 2030
Private Investment Target: ₹5.8 lakh crore
Developed by NITI Aayog
Focus on brownfield infrastructure assets

What is National Monetisation Pipeline (NMP)?

The National Monetisation Pipeline (NMP) is a central government initiative to unlock value from existing public infrastructure by leasing them to the private sector. It serves as a medium-term roadmap for “asset recycling,” where funds generated from mature, operational assets are reinvested into building new infrastructure projects

Leasing, Not Selling: The government retains 100% ownership of the assets. Private players are granted rights to operate and maintain them for a fixed period (typically 30–60 years) in exchange for upfront or periodic payments.
Brownfield Focus: It exclusively targets “brownfield” assets—those that are already built and generating revenue—to minimize execution risks for investors.

https://www.pib.gov.in/PressReleasePage.aspx?PRID=2231900&reg=3&lang=1

National Monetisation Pipeline (NMP) 2.0 Launched: ₹16.72 Lakh Crore Asset Monetisation Plan Read More »

White Revolution 2.0: Government Initiative to Boost Dairy Sector & Women Empowerment (UPSC/PSC Notes)

Leave a Comment / Daily Current Affairs, Indian Economy Current Affairs / PSC Chronicles Team

Why in News?

The Government of India has launched “White Revolution 2.0” under the Ministry of Cooperation

Key Highlights:

1. Objective of White Revolution 2.0

Expand cooperative coverage in dairy sector
Promote women empowerment
Generate rural employment
Improve market access for dairy farmers

2. Milk Procurement Target

Increase milk procurement by 50% in 5 years
Target: 1,007 lakh kg per day by 2028–29

3. Strategy (Two-Pronged Approach)

Expansion
- Establish 75,000 new Dairy Cooperative Societies (DCS) in uncovered areas
Strengthening Existing Network
- Upgrade 46,422 existing DCS
- Improve:
  - Market access
  - Farmer income
  - Supply chain efficiency

Background-White Revolution (Operation Flood)

Known as Operation Flood
Objective:
- Transform India into a self-sufficient milk producer
Achievements:
- India became the world’s largest milk producer by 1998
Key Personality
- Dr. Verghese Kurien
- Known as the “Father of White Revolution”
- Founder of NDDB (National Dairy Development Board)

https://ddnews.gov.in/en/centre-launches-white-revolution-2-0-to-boost-womens-role-in-dairy-sector/

White Revolution 2.0: Government Initiative to Boost Dairy Sector & Women Empowerment (UPSC/PSC Notes) Read More »

RBI Proposes BRICS Digital Currency Link – CBDC, e-Rupee & Cross-Border Payments Explained

Leave a Comment / Daily Current Affairs, Indian Economy Current Affairs / PSC Chronicles Team

Why in News?

The Reserve Bank of India (RBI) has recommended the government to include a proposal on linking Central Bank Digital Currencies (CBDCs) of BRICS nations in the 2026 BRICS Summit agenda to enhance cross-border payments

RBI suggested integration of CBDCs among BRICS countries.
Aim: Enable faster, cheaper, and more efficient cross-border payments.
Could reduce dependence on the US dollar in global trade.

CBDC:

Central Bank Digital Currency (CBDC) is the digital form of a country’s fiat currency, issued and regulated by its central bank. It serves as a legal tender, equivalent to physical cash, and is a direct liability of the central bank rather than a commercial bank

In India, CBDC is known as the e-Rupee (e₹).
It is a legal tender and a direct liability of RBI, unlike cryptocurrencies.

Types of CBDC in India:

Retail CBDC (e₹-R):
- Used by general public (individuals & businesses)
- For daily transactions
- Stored in digital wallets via banks
Wholesale CBDC (e₹-W):
- Used by financial institutions
- For interbank settlements
- Useful in government securities market

https://www.thehindu.com/opinion/editorial/building-bridges/article70534042.ece

RBI Proposes BRICS Digital Currency Link – CBDC, e-Rupee & Cross-Border Payments Explained Read More »

India GDP Growth Expected at 7.4% in FY26 – First Advance Estimates, GDP vs GNP Explained

Leave a Comment / Daily Current Affairs, Indian Economy Current Affairs / PSC Chronicles Team

Why in News?

India’s real GDP growth is projected at 7.4% for FY26, according to the government’s First Advance Estimates, despite global uncertainties like US tariff pressures

GDP-Explained

Gross Domestic Product (GDP) measures the total value of goods and services produced within a country’s borders in a given time period.

It is a key indicator of economic performance and growth.

GDP = Total value of final goods and services produced within India
Includes Net Indirect Taxes (GST – Subsidies) added to GVA
Excludes intermediate goods to avoid double counting

Types of GDP

Nominal GDP:

Measured at current market prices
Does not adjust for inflation

Real GDP:

Adjusted for inflation/deflation
Reflects actual growth in output

GDP vs GNP

Feature	GDP	GNP
Definition	Production within country	Income of nationals globally
Focus	Domestic territory	Ownership (citizens/companies)
Includes foreign companies in India	Yes	No
Includes income earned abroad	No	Yes

Examples:

A foreign company producing goods in India → counted in India’s GDP
An Indian company earning income abroad → counted in India’s GNP

https://indianexpress.com/article/business/economy/fy26-real-gdp-growth-seen-at-7-4-budget-prep-to-build-on-data-10460105/

India GDP Growth Expected at 7.4% in FY26 – First Advance Estimates, GDP vs GNP Explained Read More »

India’s CPI Inflation Rises to 1.33% in December 2025 – Key Facts, Types & CPI vs WPI

Leave a Comment / Daily Current Affairs, Indian Economy Current Affairs / PSC Chronicles Team

Why in News?

India’s retail inflation, based on the Consumer Price Index (CPI), increased to 1.33% in December 2025, up from 0.71% in November, as per data released by the National Statistical Office under the Ministry of Statistics and Programme Implementation.

Consumer Price Index:

Consumer Price Index (CPI) measures the average change over time in the prices paid by consumers for a representative “basket” of goods and services. It is the primary tool used to measure inflation and assess the cost of living

In India’s revised 2024 series, the basket includes 358 items classified under 12 divisions

Food and Beverages (46%): Still the largest component, though its relative weight has slightly declined.
Housing (10%): Now includes maintenance and water supply in its composite index.
Services: Coverage has expanded to 50 items, including digital services like OTT subscriptions.

Types of CPI:

CPI (Combined):

Covers both rural and urban populations

CPI – Industrial Workers (IW):

Released by Labour Bureau
Used to calculate Dearness Allowance (DA)

CPI – Agricultural Labourers (AL) / Rural Labourers (RL):

Also released by Labour Bureau

CPI vs WPI

Feature	CPI	WPI
Price Level	Retail (Consumer level)	Wholesale (Producer level)
Coverage	Goods + Services	Only Goods
Weightage	High weight to Food	High weight to Manufactured Goods
Used by	RBI for policy	Economic analysis

https://www.pib.gov.in/PressReleasePage.aspx?PRID=2213736&reg=3&lang=1

India’s CPI Inflation Rises to 1.33% in December 2025 – Key Facts, Types & CPI vs WPI Read More »