Increasing Real Effective Exchange Rate in India: the Reserve Bank of India (RBI) reported that the Real Effective Exchange Rate (REER) of the rupee reached 108.14 in November 2024 from 107.20 in October 2024, marking its highest level this year.The rupee’s REER of 108.14 indicates overvaluation since 2015-16, undermining export competitiveness, despite nominal depreciation against […]
Category: Economics Current Affairs
Wealth Tax : Proposal To Reintroduce
Wealth Tax : Proposal To Reintroduce The proposal to reintroduce wealth tax in India has sparked debates, with arguments for reducing inequality through redistribution versus concerns over capital flight and administrative inefficiencies.Wealth tax is a direct tax levied on the net wealth of individuals, HUFs, and companies to ensure redistribution of resources. In India, it […]
Monetary and Fiscal Policy
Monetary and Fiscal Policy: A finance ministry report cited monetary policy, macroprudential measures, and structural factors as possible contributors to the demand slowdown, highlighting differing views with the RBI on growth and inflation.Fiscal policy refers to the government’s use of taxation, spending, and borrowing to influence economic activity.
Annual Survey of Unincorporated Sector Enterprises
Annual Survey of Unincorporated Sector Enterprises: The Ministry of Statistics and Programme Implementation (MoSPI) has released the results of Annual Survey of Unincorporated Sector Enterprises (ASUSE) for 2023-24. The ASUSE 2023-24 results highlight significant growth in establishments, employment, and productivity in the unincorporated non-agricultural sector. The total number of establishments in the sector increased substantially […]
Real Effective Exchange Rate (REER)
Real Effective Exchange Rate (REER): The real effective exchange rate (REER) index of the rupee touched a record 108.14 in November, strengthening by 4.5 per cent during this calendar year, according to the latest RBI data.REER is a weighted average of a nation’s currency value against the currencies of its trading partners, adjusted for inflation.
Employees Provident Fund Organisation
Employees Provident Fund Organisation: The Employees’ Provident Fund Organisation (EPFO) achieved a significant milestone with a net addition of 13.41 lakh members in October 2024.Established in: 1952 under the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952. Administering Ministry: Ministry of Labour and Employment. Aim: To ensure social security for the organized sector workforce through […]
RBI Sets Up Panel for Ethical AI Framework in Financial Sector
RBI Sets Up Panel for Ethical AI Framework in Financial Sector: The Reserve Bank of India (RBI) has constituted an eight-member committee to develop the Framework for Responsible and Ethical Enablement of Artificial Intelligence (FREE-AI) in the financial sector. Announced during the RBI’s December monetary policy meeting, this initiative focuses on guiding the adoption of […]
Farmers Producer Organisations
Farmers Producer Organisations: The Indian Council for Research on International Economic Relations (ICRIER) recently analyzed challenges faced by India’s Farmer Producer Organisations (FPOs) and suggested necessary reforms. An FPO is a type of Producer Organisation (PO) formed by farmers. It operates as an organization of the producers, by the producers, and for the producers. The […]
55th GST Council Meeting
55th GST Council Meeting: The Finance Minister chaired the 55th Goods and Services Tax (GST) Council meeting. GST council decided to raise the rate of tax to 18% from 12% on all used EV sales, just as in case of non-electric vehicles. GST will apply only to the margin value (difference between purchase and selling […]
Govt Infuses ₹500 Cr in IFCI to Boost Financial Health
Govt Infuses ₹500 Cr in IFCI to Boost Financial Health: The Indian government has decided to infuse ₹500 crore into the state-owned Industrial Finance Corporation of India (IFCI) to strengthen its financial health ahead of the company’s restructuring. This infusion will likely increase the government’s stake in IFCI beyond its current holding of 71.72% as […]
