Must ReadRBI MPC holds Repo rate at 5.25%, lowers growth forecast to 6.6%, increases inflation projection by 50 bps to 5.1% for FY27
The [Monetary Policy Committee] (MPC) of the [Reserve Bank of India] unanimously maintained the repo rate at 5.25% while continuing its 'neutral' stance. However, citing prolonged global supply chain disruptions, elevated energy prices, and geopolitical conflicts, the [RBI] revised its macroeconomic projections, lowering the FY27 GDP growth forecast to 6.6% (from 6.9%) and increasing the inflation projection by 50 basis points to 5.1%.
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Must ReadIndia, U.K. launch Critical Minerals Global Supply Chain Observatory for improved cooperation, tech-sharing
India and the United Kingdom have formally launched the Critical Minerals Global Supply Chain Observatory (GSCO). This initiative, jointly operated by Indian and U.K.
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Must ReadIndia-China relations have improved from ‘reset and fresh start’ to ‘new level’: Chinese envoy Xu Feihong
Chinese Ambassador to India Xu Feihong stated that India-China relations have transitioned from a "reset" phase to a "new level of development," although full normalization is yet to be achieved due to a lingering trust deficit. This follows recent diplomatic and military dialogues, including the 35th meeting of the Working Mechanism for Consultation and Coordination (WMCC) on border affairs, aimed at managing the border situation following the 2020 Galwan Valley clashes.
Read on The HinduDive Into Study NotesRBI Inflation FY2026-27: The inflation battle is back as RBI raises FY27 forecast to 5.1% amid West Asia war
The [Reserve Bank of India (RBI)]'s [Monetary Policy Committee (MPC)] has revised its consumer price inflation (CPI) projection for FY27 upwards to 5.1%, citing global uncertainties such as the West Asia conflict and domestic risks like a potentially weaker monsoon due to [El Niño]. The [MPC] opted for a pause on the repo rate, maintaining focus on managing inflationary pressures amid supply-chain disruptions and rising crude oil prices.
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Must ReadNicobar port has no ‘strategic goals’, Finance Ministry body said in 2024
The [Public Investment Board] (PIB) and the [Public-Private Partnership Appraisal Committee] (PPPAC) recently evaluated the proposed ₹81,000-crore [Great Nicobar Island Development Project], specifically its International Container Transhipment Port (ICTP) component. The evaluation revealed debates over the project's classification as a 'strategic project' versus a commercial enterprise, and raised questions regarding its financial viability and the need for significant [Viability Gap Funding] (VGF).
Must ReadFunding India’s climate future, the trillion-dollar question’
This editorial analyzes the massive financial requirements for India to meet its climate goals, estimating a need for $2.5 trillion by 2030 for its [Nationally Determined Contributions] (NDCs) and $10.1 trillion for net-zero by 2070. The author argues that international climate finance will be insufficient, necessitating robust domestic mechanisms.
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Must ReadWhen El Niño becomes an economic crisis
Recent forecasts from the [NOAA] and [IMD] indicate a high probability of an El Niño event developing, which could lead to a 'below normal' southwest monsoon in India. The article argues that El Niño should not be viewed merely as a weather anomaly but as a severe economic shock that disproportionately impacts the informal sector, agriculture, and urban poor, leading to heat stress, water scarcity, and food inflation.
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Must ReadBIT sweeter? India weighs easing treaty rules with safeguards to attract foreign capital
The Indian government is reviewing its 2016 Model Bilateral Investment Treaty (BIT) to attract sustained foreign direct investment (FDI). Key proposals include relaxing the requirement for foreign investors to exhaust domestic legal remedies before seeking international arbitration and potentially granting Most-Favored-Nation (MFN)-forward benefits, while ensuring safeguards against treaty abuse and preserving sovereign policy space.
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Must ReadVladimir Putin pledges non-interference in ‘delicate’ India-China ties; backs Modi, Xi to resolve border issues amicably
Russian President Vladimir Putin recently stated that Russia will maintain a stance of non-interference in the complex bilateral relationship between India and China. He expressed confidence in the leadership of both nations to resolve their long-standing border disputes, notably the aftermath of the 2020 Galwan Valley clash, amicably.
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