Context: India is going through a cyclical growth slowdown driven by fiscal consolidation and slower credit growth on macro-prudential tightening of consumer loans by the Reserve Bank of India (RBI), a Goldman Sachs report argued. Cyclical Slowdown A cyclical slowdown is a period of lean economic activity that occurs at regular intervals. Such slowdowns last over the short-to-medium term, and can be remedied by relevant fiscal and monetary interventions. Structural Slowdown A structural slowdown is a long-term period of economic weakness resulting from a permanent shift in the economy. The causes may include changes in technology, demographics, or consumer behavior. Understanding Cyclical and Structural Slowdowns Differences
Fintech Association for Consumer Empowerment (FACE)
Context: In a data release, which comes amid concerns on the personal loans front, which have even led to actions from RBI to curb lending in it, Fintech Association for Consumer Empowerment (FACE) said the loan outstanding dropped to â‚ą66,683 crore. Fintech Association for Consumer Empowerment (FACE) FACE is a Self-Regulatory Organisation in the FinTech sector recognized by RBI, established in September 2020. FACE aims to build a consumer-centric FinTech ecosystem in India, with financial services that are safe, suitable, and transparent. Some of the objectives of FACE include enabling financial services that give priority to consumer needs and safety. Role of FACE in FinTech Ecosystem Challenges Facing the FinTech Industry Achievements and Contributions of FACE Fintech In India Fintech Repository
Direct and Indirect Taxes in India
Context: Growth in India’s net direct tax collections slowed marginally over the past month to touch 15.88% by January 12, from a 16.5% uptick as of December 17. Direct Tax in India Significance of Direct Tax Government Steps to Strengthen Direct Taxes Indirect Tax Indirect Tax is that type of tax for which the Impact of Tax and Incidence of Tax fall on different persons or entities. Indirect Taxes are, generally, levied on goods and services. They differ from direct taxes as they are not levied on a person who pays directly to the government. Instead, they are levied on products/services and are collected by the person selling the product. Characteristics of Indirect Tax Types of Indirect Tax Other Taxes in India
Wholesale Price Index (WPI) & Consumer Price Index (CPI)
Inflation India’s retail inflation eased a bit to a four-month low of 5.22% in December from 5.5% in November, with food inflation cooling marginally from 9.04% in November to 8.4% last month, the National Statistics Office. Wholesale Price Index (WPI) Consumer Price Index (CPI) New CPIs Comparative Analysis of Wholesale Price Index (WPI) and Consumer Price Index (CPI) Producer Price Index (PPI) Basic Concepts of Inflation
Indian Diaspora and Pravasi Bharatiya Divas (PBD)
Context: PM Narendra Modi hailed the Indian diaspora as “ambassadors to the world,” acknowledging their role in India’s growth and integration into the global community. Key Highlights: Pravasi Bharatiya Divas Pravasi Bharatiya Divas or Overseas Indian Day is an official celebration in India since 2003, marking the Overseas Indian contributions to the nation’s development as well as on the occasion when Mahatma Gandhi returned to Mumbai from South Africa in 1915. Indian Diaspora Overseas Indians, also called Non-Resident Indians (NRIs) , The Overseas Citizenship of India (OCI) and People of Indian Origin (PIOs), are Indians living or born abroad.
Non-Resident Indian (NRI)
A Non-Resident Indian (NRI) is a citizen of India living outside the country. In fact, the term NRI is also sometimes used to describe a person of Indian origin living outside India.
Comptroller and Auditor-General (CAG)
Context: The Delhi High Court questioned the Aam Aadmi Party (AAP) government for “dragging its feet” on the tabling of the reports of the Comptroller and Auditor-General (CAG) over the city administration before the Assembly. Comptroller and Auditor General (CAG) of India Constitutional Mandate Appointment and Term Duties and Powers Role in Governance Constitutional Provisions Provision Description Article 148 Deals with the appointment, oath, and conditions of service of the CAG of India. Article 149 Specifies the duties and powers of the CAG of India. Article 150 States that the accounts of the Union and States must be kept in a form prescribed by the President on the advice of the CAG. Article 151 Demands that the CAG’s reports on Union accounts are submitted to the President and laid before Parliament; state reports are submitted to the Governor and laid before the State Legislature. Article 279 Says that the CAG certifies the calculation of “net proceeds,” and its certificate is final. Third Schedule Section IV provides the oath or affirmation that is to be administered by the Judges of the Supreme Court and the CAG at the time of assuming office. Sixth Schedule Deals with the maintenance of accounts by District or Regional Councils, as per a prescribed form, in accordance with auditing procedure. Such reports shall be submitted to the Governor, who will present the same before the Council. Previous years UPSC Mains Questions
China-Russia Relations
Context: Trade between China and Russia reached a record high last year, reflecting strong economic ties between the countries despite Western sanctions on Moscow. Combined imports and exports with Russia totalled $244.8 billion in 2024, according to China’s General Administration of Customs, up from $240.1 billion in 2023 History of China-Russia Relations Current Developments in China-Russia Relations Interest Differences between Russia & China Consequence of the Ukrainian War Dual Hegemony Fears SWIFT System Problem Under Dual Dominance Policy India should Follow? Mains PYQ: Q The USA is facing an existential threat in the form of China, that is much more challenging than the erstwhile Soviet Union.” Explain. (UPSC IAS/2021)
AI Chips
Context: The U.S. unveiled new export rules on advanced computing chips used for artificial intelligence, aiming to facilitate sales to allied nations and further curb access to countries like China. The new rules update controls on chips, requiring authorisations for exports, re-exports and in-country transfers. What are AI chips? Importance of AI Chips compared to General Purpose Hardware? UPSC Civil Services Examination, Previous Year Questions Q. With the present state of development, Artificial Intelligence can effectively do which of the following? (2020) Select the correct answer using the code given below: (a) 1, 2, 3 and 5 only(b) 1, 3 and 4 only(c) 2, 4 and 5 only(d) 1, 2, 3, 4 and 5 Ans: (b)
The Parali Project: From Waste to Sustainability
Parali is a byproduct of rice harvesting, which was traditionally burned in preparation for crop. This created pollution and a loss of income. The Parali Project transformed parali into artisanal products, promoting the preservation of the environment and upliftment of society. Ecological Sustainability Future Vision: Scaling Parali’s Potential
