Service Sector in India

Service Sector in India #GS III Indian Economy Context: According to a monthly survey released on Friday, the Indian services industry grew at its fastest rate in 12 years in February, helped by favourable demand conditions and new business gains. Its highest level in 12 […]


WHAT’S FEEDING INFLATION IN INDIA    Present circumstances:  ∙Globally, the rate of product inflation is decreasing as demand and input costs go down. Yet, India is  experiencing rising prices.  ∙Despite the fact that demand for high-touch services is increasing more slowly than anticipated,  services inflation is nevertheless significant globally. In India, the cost of living is decreasing.    Urban demand growth as a source of inflation:    ∙The decrease in rural consumer spending in the second half of 2021 marked the beginning of  everything.  ∙The inconsistent monsoon rains, increased inflation, and the spread of the March heatwave during  2022 led to a mediocre harvest and a significant decline in rural income.  ∙Around this time, demand rose in urban areas. Lockdowns ceased, and employment in cities resumed.  During the epidemic era, workers who had fled for their homes returned to the big cities.  ∙Every time an Indian worker moved from a rural to an urban region, their earnings climbed. Rising  salaries correlated with high expenditure. This made the demand shortfall in rural areas even more  obvious.  ∙The latter few months of 2022 saw an upsurge in winter agricultural sowing. Since more labour were  needed on the ground, agricultural pay rose.  ∙In fact, after accounting for inflation, they went above pre-pandemic levels. Other rural indicators,  such as the manufacturing of consumer non-durables, which grew swiftly from October levels, also  pointed to stronger revenues.  ∙By the end of 2022, the shift in labourers moving back to urban areas and the ensuing growth stimulus  had essentially come to an end. Following that, indices of urban demand, such as the manufacturing of  consumer durables, began to fall. Fair enough, demand in rural areas is only slightly rising while it is  somewhat decreasing in metropolitan areas. Neither is […]

Balancing growth with stability

Balancing growth with stability #GS 03 Budget, Economy, Infrastructure For Mains Concerns with the growth rate Even though the economy has staged a recovery and surpassed the pre-pandemic income level, the growth rate remains below the pre-pandemic trend at less than 7%. However, inflation remains […]

AVGC Sector

Animation, Visual Effects, Gaming and Comics (AVGC) Sector #GS-03 Economy, Science and Technology For Prelims AVGC Promotion Task Force: The AVGC Promotion Task Force was set up under the headship of Secretary, Ministry of Information & Broadcasting. Its creation was announced in the Union Budget […]

The rise of rural manufacturing

The rise of rural manufacturing #GS-03 Economy For Mains: The urban-rural manufacturing shift: A steady stream of investments in rural locations over the last two decades has ensured that 42% of factories and 62% of fixed capital is in the rural side This is evidence […]

Big Tech and ex-ante regulation

Big Tech and the need in India for ex-ante regulation #GS-02 Governance, #GS-03 Economy For Prelims Competition Commission of India (CCI): The CCI is a statutory body which acts as the competition regulator in India and is responsible for enforcing the Competition Act, of 2002. […]

Factors of Production

Factors of Production #GS-03 Economy For Prelims What are the Factors of Production: Factors of production are resources that are thought to be the basic building blocks of production in any economy. Land, labour, capital, and entrepreneur are widely considered to be the four main […]