Category: Economics Current Affairs

India’s Foreign Exchange Reserves Hit Record $651.5 Billion: With $651.5 billion in foreign exchange reserves by May 31, 2024, India had the highest amount of foreign exchange reserves ever. Positive changes in trade, remittances, and foreign investments have helped India’s external industry reach a strong point. The Reserve Bank of India (RBI) says that service […]

Capital Account Convertibility: To stay “future-ready” for India’s fast-growing economy, the Reserve Bank of India (RBI) has set aspirational goals: capital account liberalization, internationalization of the Indian rupee (INR), universalizing digital payments, and globalizing India’s financial sector over a multi-year timeframe. Capital Account Convertibility: Balance of Payments Account: It is a statement of all transactions […]

Sticky Inflation: Sticky inflation has dashed the hopes of early rate cuts with experts now pencilling in repo rate cuts by the RBI from December this year. Economists expect a shallow rate cut cycle with RBI likely to lower the repo rate by 75 – 100 basis points. Sticky Inflation refers to a phenomenon where […]

Foreign Exchange Management Act (FEMA), 1999: RBI is planning to rationalise the Guidelines for Export and Import of Goods and Services under the Foreign Exchange Management Act (FEMA), 1999. Foreign Exchange Management Act (FEMA), 1999 came into force on June 1, 2000, as a successor to the Foreign Exchange Regulation Act, or FERA, of 1973, […]

Pump And Dump Scheme In The Stock Market: The Securities Exchange Board of India’s (SEBI) recently slapped a fine of Rs 7.75 crore on 11 individuals for allegedly operating a ‘pump and dump’ scheme. Pump and Dump Scheme is a type of manipulation activity that involves artificially inflating the price of a stock through false […]

Policy Rate Unchanged : RBI The Reserve Bank of India (RBI) decided to keep the policy rate unchanged at 6.5% for the eighth consecutive time. The Monetary Policy Committee (MPC) will maintain a tight control on inflation and remain watchful of elevated food inflation amid the expectation of a normal monsoon. The rate increase cycle […]

Preston Curve : Study The Preston curve refers to the empirical relationship between life expectancy and per capita income in a country, proposed by American sociologist Samuel H. Preston in 1975. The curve shows that people in richer countries generally have longer life spans compared to those in poorer countries, likely due to better access […]

India’s Third-Largest Export Market In The Fiscal Year 2023–24 : Netherland The Netherlands became India’s third-largest export market in the fiscal year 2023–24, after the US and the UAE. This was the case even though India’s total exports of goods fell by 3%, according to reports from the Commerce Ministry. This rise has been emphasized […]

Wheat Imports : After 6 Years Gap India, the world’s second-largest wheat producer, plans to begin wheat imports after a six-year gap to replenish depleted reserves and control rising prices, driven by three consecutive years of disappointing crops. New Delhi is expected to abandon a 40% tax on wheat imports this year paving the way […]