Sarkarinomics

The article argues that inflation and affordability are not the same thing. While inflation measures the year-on-year rate at which prices are rising, affordability depends on whether people’s incomes are growing faster than the overall price level. Although India’s retail inflation has largely rema…

The article discusses the Reserve Bank of India’s record dividend transfer of about ₹2.87 lakh crore to the government and argues that, although it provides short-term fiscal relief, it also raises concerns about long-term fiscal dependence on the RBI. The dividend helps the government manage high s…

The article explains that the recent spike in global crude oil prices, driven by tensions in West Asia, poses a major challenge for the Indian economy because India depends heavily on imported oil. Higher crude prices increase fuel costs, worsen inflation, widen the trade deficit, weaken the rupee, …

The article argues that while the government’s call to reduce imports and save foreign exchange—by cutting consumption of imported goods like gold, edible oil, fertilisers, and crude oil—may temporarily ease pressure on India’s forex reserves and current account deficit, it could also slow economic …

The article argues that the ongoing conflict involving Iran could trigger stagflation—a combination of high inflation and low growth—similar to the 1970s oil shocks. Disruptions in energy supply, especially through critical routes like the Strait of Hormuz, act as negative supply shocks, shifting su…

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Hi folks Hope you are preparing well. The only intention of this channel is to make you learn Economics using real world events. You should know it well that studying core economic theories will never help if you are missing its real world applications. Happy reading!!

Amid rising geopolitical tensions and disruptions around the Strait of Hormuz, at least 10 foreign-flagged oil and gas tankers bound for India have been stranded in the Persian Gulf, alongside several India-flagged vessels. These include ships carrying LPG, crude oil, and LNG, highlighting the vulne…

As global geopolitical tensions persist, the Reserve Bank of India (RBI) is increasingly facing a policy dilemma between stabilizing the rupee and preserving its foreign exchange reserves. Heavy foreign investor outflows have put downward pressure on the rupee, prompting the RBI to intervene by sell…

India has announced its updated climate targets for 2035 under its Nationally Determined Contributions (NDCs), signaling continued commitment to a clean energy transition despite global uncertainties. The new targets aim to reduce emissions intensity of GDP by 47% from 2005 levels, increase the shar…

India has strategically utilized its foreign exchange reserves since the 1991 balance of payments crisis to navigate global uncertainties, using them as a buffer against capital outflows and currency volatility. The recent West Asia conflict led to a $19 billion drop in reserves, a weakened rupee, a…

What Happened? India has shifted to a new GDP base year: 2022–23 (earlier base was 2011–12). Under the new series, growth for: FY26 → 7.6% (higher than 7.4% earlier estimate under old series) FY27 forecast → revised upward to 7–7.4% Why Does Changing the Base Year Matter? Changing base year does …

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As of now, any foreign investment in an unlisted Indian company through equity instruments by a person resident outside India is defined as FDI. In listed companies, foreign investments of 10% or more of the post issue paid-up equity capital on a fully diluted basis is con-sidered as FDI.

CPI with new base year of 2024