Tag: macroeconomic stability

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“India’s so-called ‘goldilocks phase’ masks deeper structural weaknesses in economic growth.” Discuss.

Topic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment Q4. “India’s so-called ‘goldilocks phase’ masks deeper structural weaknesses in economic growth.” Discuss. (15 M) Difficulty Level: Medium Reference: NIE Why the question The gap between perceived macroeconomic stability and underlying structural weaknesses, a key theme in current economic debates. …

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Economic Stabilisation Fund

Source:  ANI Subject:  Economy Context: Finance Minister has announced an allocation of ₹57,381 crore for a new Economic Stabilisation Fund to help India navigate global headwinds, such as the West Asia conflict and supply chain disruptions. About Economic Stabilisation Fund: What it is? The Economic Stabilisation Fund is a specialized fiscal mechanism designed to provide …

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“Domestic demand is emerging as India’s strongest buffer against global volatility”. Explain the drivers of strong domestic demand. Assess India’s resilience during the recent global disruptions. Suggest long-term measures to enhance shock-absorption capacity.

Topic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Q5. “Domestic demand is emerging as India’s strongest buffer against global volatility”. Explain the drivers of strong domestic demand. Assess India’s resilience during the recent global disruptions. Suggest long-term measures to enhance shock-absorption capacity. (15 M) Difficulty Level: Medium Reference: …

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RBI Data on Household Debt and Asset Growth

Context: Recent RBI data (2024–25) reveal that Indian households are accumulating debt faster than assets, with annual liabilities rising 102% since 2019–20, outpacing the 48% growth in financial assets. About RBI Data on Household Debt and Asset Growth: What it is? The Reserve Bank of India’s financial accounts data track how Indian households build assets …

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Discuss the macroeconomic factors behind the recent depreciation of the Indian rupee. What policy measures can be adopted to mitigate its adverse impacts?

Topic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment Q6. Discuss the macroeconomic factors behind the recent depreciation of the Indian rupee. What policy measures can be adopted to mitigate its adverse impacts? (10 M) Difficulty Level: Medium Reference: IE Why the question The rupee’s slide to ₹88.75/$ in …

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“GST reforms can stimulate consumption but risk weakening India’s fiscal consolidation”. Analyse this paradox. How can India balance short-term growth needs with long-term debt sustainability?

Topic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Q5. “GST reforms can stimulate consumption but risk weakening India’s fiscal consolidation”. Analyse this paradox. How can India balance short-term growth needs with long-term debt sustainability? (15 M) Difficulty Level: Medium Reference: BS Why the question The recent GST 2.0 …

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What are the macroeconomic consequences of sustained Foreign Portfolio Investors (FPIs) outflows? Suggest measures to mitigate their impact on the Rupee.

Topic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment Q5. What are the macroeconomic consequences of sustained Foreign Portfolio Investors (FPIs) outflows? Suggest measures to mitigate their impact on the Rupee. (10 M) Difficulty Level: Medium Reference: TH Why the question Recent reports of sustained FPI outflows in July–Sept …

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Inflation targeting and the test of credibility

Syllabus: Indian Economy Source:  IE Context The Reserve Bank of India (RBI) released its discussion paper (August 2025) on reviewing the flexible inflation targeting (FIT) framework. With the current 4% CPI target within a 2–6% tolerance band expiring in March 2026, the RBI has cautioned that raising the target could dilute credibility and reverse policy …

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Evaluate how the inflation targeting framework has influenced foreign investor sentiment in India. Analyse its role in improving India’s sovereign credit ratings. Discuss the potential risks to investor confidence if the framework is diluted.

Topic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Q5. Evaluate how the inflation targeting framework has influenced foreign investor sentiment in India. Analyse its role in improving India’s sovereign credit ratings. Discuss the potential risks to investor confidence if the framework is diluted. (15 M) Difficulty Level: Difficult. …

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Discuss the implications of a front-loaded fiscal deficit on macroeconomic stability. How does it affect expenditure prioritisation during the rest of the fiscal year? Evaluate policy options to smoothen deficit distribution.

Topic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Q5. Discuss the implications of a front-loaded fiscal deficit on macroeconomic stability. How does it affect expenditure prioritisation during the rest of the fiscal year? Evaluate policy options to smoothen deficit distribution. (15 M) Difficulty Level: Medium Reference: TH Why …

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“India’s long-term growth narrative is strong, but its structural vulnerabilities remain unresolved”. Assess the nature of these vulnerabilities. Examine their implications for sustaining high growth. Suggest policy responses to address them.

Topic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment Q5. “India’s long-term growth narrative is strong, but its structural vulnerabilities remain unresolved”. Assess the nature of these vulnerabilities. Examine their implications for sustaining high growth. Suggest policy responses to address them. (15 M) Difficulty Level: Medium Reference: IE Why …

Continue reading ““India’s long-term growth narrative is strong, but its structural vulnerabilities remain unresolved”. Assess the nature of these vulnerabilities. Examine their implications for sustaining high growth. Suggest policy responses to address them.”