• Review of Inflation Targeting Framework (Micro vs Macro) – With the flexible inflation targeting framework set to expire in March 2026, the RBI is reviewing whether to target headline or core inflation. While economists favor continuing the 4% target, the debate highlights the macroeconomic trade-off between price stability and growth. (October 2025)
  • Problem with Low Inflation (Meaning and Scope) – Recent data showing CPI inflation at 2.07% highlights a macroeconomic challenge where low inflation slows nominal GDP growth, impacting government revenue, fiscal arithmetic, and debt sustainability. (October 2025)
  • Unemployment of the Educated (Factors of Production – Labor) – A structural crisis where highly educated youth face unemployment or underemployment, reflecting a mismatch between human capital formation and labor market demand. (October 2025)
  • Unified National Employment Framework (Resource Allocation) – Experts call for a unified framework to address job–skill mismatches and better allocate human resources to convert the demographic dividend into economic productivity. (October 2025)
  • Consumerism and Identity (Economic Systems) – Analysis of how globalization and market economies promote consumerism, linking personal identity to consumption and reflecting behavioural dimensions of capitalist systems. (October 2025)
  • Non-Farm Primary Activities (Resource Allocation) – Rural households are diversifying into livestock and mining to mitigate agricultural risks, indicating adaptive resource reallocation at the household level. (October 2025)
  • State Finances 2022–23 Report (Meaning and Scope) – The CAG report notes that states’ total debt reached 22.17% of GDP, highlighting issues related to fiscal sustainability and public finance management. (September 2025)
  • Annual Survey of Industries 2023–24 (Factors of Production) – MoSPI data shows GVA growth of 11.89%, reflecting returns to capital and labor and trends in manufacturing employment and investment. (September 2025)
  • Need for Separate Agriculture Budget (Resource Allocation) – Calls for a distinct agriculture budget to address sectoral vulnerabilities and improve allocation of subsidies and public investment. (September 2025)
  • Navigating the New Techno-Capitalist Order (Types of Economies) – The emergence of technology-driven capitalism, contrasting the US private-led model, China’s state-led approach, and India’s hybrid economic pathway. (August 2025)
  • System of National Accounts 2025 (Meaning and Scope) – The UN’s updated framework expands economic measurement to include natural capital and unpaid work, broadening the understanding of sustainability and welfare. (August 2025)
  • India–China Reform Deficit (Factors of Production) – India’s challenge lies in reforming land, labor, and capital markets, while China faces overinvestment and weak consumption, reflecting differing structural constraints. (August 2025)
  • Corporate Investment Lagging (Circular Flow of Income) – Despite high corporate profits, weak demand has limited reinvestment, disrupting the circular flow of income between firms and households. (August 2025)
  • National Cooperative Policy 2025 (Economic Systems) – The policy promotes cooperative enterprises based on collective ownership, offering an alternative to purely capitalist or state-led economic models. (August 2025)
  • DAP Fertiliser Crisis (Scarcity) – China’s export restrictions caused fertilizer shortages in India, demonstrating how scarcity affects supply chains and resource allocation decisions. (August 2025)
  • India’s “Goldilocks Moment” (Macroeconomics) – The economy is described as experiencing balanced growth with controlled inflation, indicating equilibrium between aggregate demand and supply. (July 2025)
  • India as 4th Largest Economy (Meaning and Scope) – India’s rise in nominal GDP rankings highlights differences between nominal GDP and PPP as measures of economic size. (July 2025)
  • Capping MGNREGS Spending (Scarcity & Opportunity Cost) – Limiting expenditure under MGNREGS reflects fiscal constraints and the opportunity cost involved in allocating limited public funds. (July 2025)
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Economy Fundamentals Current Affairs ▼
  • Review of Inflation Targeting Framework (Micro vs Macro) – With the flexible inflation targeting framework set to expire in March 2026, the RBI is reviewing whether to target headline or core inflation. While economists favor continuing the 4% target, the debate highlights the macroeconomic trade-off between price stability and growth. (October 2025)
  • Problem with Low Inflation (Meaning and Scope) – Recent data showing CPI inflation at 2.07% highlights a macroeconomic challenge where low inflation slows nominal GDP growth, impacting government revenue, fiscal arithmetic, and debt sustainability. (October 2025)
  • Unemployment of the Educated (Factors of Production – Labor) – A structural crisis where highly educated youth face unemployment or underemployment, reflecting a mismatch between human capital formation and labor market demand. (October 2025)
  • Unified National Employment Framework (Resource Allocation) – Experts call for a unified framework to address job–skill mismatches and better allocate human resources to convert the demographic dividend into economic productivity. (October 2025)
  • Consumerism and Identity (Economic Systems) – Analysis of how globalization and market economies promote consumerism, linking personal identity to consumption and reflecting behavioural dimensions of capitalist systems. (October 2025)
  • Non-Farm Primary Activities (Resource Allocation) – Rural households are diversifying into livestock and mining to mitigate agricultural risks, indicating adaptive resource reallocation at the household level. (October 2025)
  • State Finances 2022–23 Report (Meaning and Scope) – The CAG report notes that states’ total debt reached 22.17% of GDP, highlighting issues related to fiscal sustainability and public finance management. (September 2025)
  • Annual Survey of Industries 2023–24 (Factors of Production) – MoSPI data shows GVA growth of 11.89%, reflecting returns to capital and labor and trends in manufacturing employment and investment. (September 2025)
  • Need for Separate Agriculture Budget (Resource Allocation) – Calls for a distinct agriculture budget to address sectoral vulnerabilities and improve allocation of subsidies and public investment. (September 2025)
  • Navigating the New Techno-Capitalist Order (Types of Economies) – The emergence of technology-driven capitalism, contrasting the US private-led model, China’s state-led approach, and India’s hybrid economic pathway. (August 2025)
  • System of National Accounts 2025 (Meaning and Scope) – The UN’s updated framework expands economic measurement to include natural capital and unpaid work, broadening the understanding of sustainability and welfare. (August 2025)
  • India–China Reform Deficit (Factors of Production) – India’s challenge lies in reforming land, labor, and capital markets, while China faces overinvestment and weak consumption, reflecting differing structural constraints. (August 2025)
  • Corporate Investment Lagging (Circular Flow of Income) – Despite high corporate profits, weak demand has limited reinvestment, disrupting the circular flow of income between firms and households. (August 2025)
  • National Cooperative Policy 2025 (Economic Systems) – The policy promotes cooperative enterprises based on collective ownership, offering an alternative to purely capitalist or state-led economic models. (August 2025)
  • DAP Fertiliser Crisis (Scarcity) – China’s export restrictions caused fertilizer shortages in India, demonstrating how scarcity affects supply chains and resource allocation decisions. (August 2025)
  • India’s “Goldilocks Moment” (Macroeconomics) – The economy is described as experiencing balanced growth with controlled inflation, indicating equilibrium between aggregate demand and supply. (July 2025)
  • India as 4th Largest Economy (Meaning and Scope) – India’s rise in nominal GDP rankings highlights differences between nominal GDP and PPP as measures of economic size. (July 2025)
  • Capping MGNREGS Spending (Scarcity & Opportunity Cost) – Limiting expenditure under MGNREGS reflects fiscal constraints and the opportunity cost involved in allocating limited public funds. (July 2025)
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