Context: Entropy, or the disorder in a system, is a concept not usually used to understand economic trends, but it best describes the disorder and randomness at work today. What are some negative economic trends since the start of 2022? Energy costs rising, the trade balance turns more negative, the fiscal balance deteriorating, portfolio capital… Continue reading For India, economic entropy presents both an opportunity and big challenge
Tag: business standard
How consumption is set to outstrip food grain production
Context: Food consumption is outpacing food production. It may prove the Malthus theory correct. In 1798, British philosopher and economist Thomas Malthus gave a theory. The theory predicted a catastrophe, which is also called “Malthusian catastrophe”. He predicted in his theory that population growth would outpace food production to cause shortages and famine. His theory… Continue reading How consumption is set to outstrip food grain production
Crude Economics – Marco-Economic impacts of oil price rise
News: The level of crude oil prices often changes the macroeconomic outlook in India. How do oil prices impact India’s economic outlook? India’s macroeconomic outlook improves when oil prices are low and stable. Whereas, a rise in oil prices means a higher Current Account Deficit and pressure on the currency. It also results in inflation… Continue reading Crude Economics – Marco-Economic impacts of oil price rise
Combating desertification
News: The 15th Conference of Parties (COP15) of the United Nations Convention to Combat Desertification (UNCCD) was recently held at Abidjan. It called upon nations to invest in restoring degraded land for future prosperity, and urged the 196 participating nations to reclaim 1 billion hectares of degraded land by 2030. Contents1 What is the global… Continue reading Combating desertification
The ESG rating conundrum
News: In recent years, the environmental, social and governance (ESG) investments have emerged as a subject of great interest and significance across the globe. In this context, the SEBI had brought out a consultation paper on the need to regulate ESG rating providers. Increasingly, corporates are adopting higher ESG norms, and investors are preferring such investments.… Continue reading The ESG rating conundrum
Unexpected, but also unacceptable – Shocks due to Russia-Ukraine war
News: Russian invasion of Ukraine represents an unexpected and undesirable shock to global economies, including India’s Economy. Indian economy is facing some unexpected shocks due to the Russian invasion of Ukraine. Even the areas which were looking beneficial for India are turning out to be harmful. Impacts on Indian economy Both Russia and Ukraine have… Continue reading Unexpected, but also unacceptable – Shocks due to Russia-Ukraine war
Simulating gravity
News: Recently, the Orbital Assembly Corporation announced a plan to develop a space business park (hotel) which will be made operational by 2025. The hotel will be equipped with artificial gravity. Benefits of artificial gravity It would keep astronauts healthy on long trips, prevent loss of bone density and muscle atrophy. For example, in microgravity,… Continue reading Simulating gravity
Objection milords: SC’s GST Council ruling is an overreach and can be hugely disruptive. GoI should file review petition
News: A Supreme Court Bench in a judgment has said that the recommendations of the Goods and Services Tax (GST) Council were not binding on the Central and state governments. In the five years since GST has been rolled out, the GST Council has been the decision-making body on all key matters such as tax… Continue reading Objection milords: SC’s GST Council ruling is an overreach and can be hugely disruptive. GoI should file review petition
Central banks and the rule of law
Context: Two recent developments in India underline the need to inspire the rule of law in the functioning of central banks (CBs). What are these two recent developments and the reasons behind it? The Monetary Policy Committee (MPC) normally makes policy announcements in line with a predictable schedule. But on May 4, it went off… Continue reading Central banks and the rule of law
Increasing the pace of India’s urbanisation
News: In recent years, the governments has started to realise that the cities are the drivers of economic growth. Contents1 Trends of Urbanization 2 India’s trends 3 State-wise trends in India 4 Merits of urbanisation 5 What are the issues? Trends of Urbanization In 1960, the global rate of urbanisation was at 33.61%. In 2003, more people were living… Continue reading Increasing the pace of India’s urbanisation
