Shrinkflation: Shrinkflation is the practice of reducing the size of a product while maintaining its sticker price. It is a form of hidden inflation. Raising the price per given amount is a strategy employed by companies, mainly in the food and beverage industries, to stealthily boost profit margins or maintain them in the face of rising input costs. Nowadays, …
The use of the dollar as a financial weapon against Russia by the U.S. has resulted in countries taking up accelerated measures to reduce their dependence on the U.S. dollar. Countries now want to hold fewer dollars and euros by switching to alternative currencies such as the yuan. Also, India is exploring trade with Russia …
Types of Unemployment in India Disguised Unemployment: It is a phenomenon wherein more people are employed than actually needed. It is primarily traced in the agricultural and unorganised sectors of India. Seasonal Unemployment: It is unemployment that occurs during certain seasons of the year. Agricultural labourers in India rarely have worked throughout the year. Structural Unemployment: It is …
What is a Non-Performing Asset? NPA refers to a classification for loans or advances that are in default or are in arrears on scheduled payments of principal or interest. In most cases, debt is classified as non-performing, when the loan payments have not been made for a minimum period of 90 days. Gross non-performing assets are the sum of …
What is a Dollar–Rupee Swap auction? It’s a forex tool whereby the central bank uses its currency to buy another currency or vice versa. Dollar–Rupee Buy/Sell Swap: The central bank buys dollars (US dollars or USD) from banks in exchange for Indian Rupees (INR) and immediately gets into an opposite deal with banks promising to sell dollars at a …
Surge in global energy prices trigger a ‘terms-of-trade’ shock, where import prices rise faster than export prices, for large net energy importers like India, resulting in a hit on current account balances. The high fuel prices would result in higher inflation rates. The higher retail inflation would strain monetary policy and dampen economic growth and stress some bank borrowers. Additionally, this …
Impact of High Oil Prices on Economy – UPSC Prelims Read More »
Inflation: Inflation refers to the rise in the prices of most goods and services of daily or common use, such as food, clothing, housing, recreation, transport, consumer staples, etc. Inflation measures the average price change in a basket of commodities and services over time. Inflation is indicative of the decrease in the purchasing power of a unit of a …
Core Inflation excludes volatile goods from the basket of commodities tracking Headline Inflation. These volatile commodities mainly comprise food and beverages (including vegetables) and fuel and light (crude oil) Core inflation = Headline inflation – (Food and Fuel) inflation Increase in core inflation suggests improvement in demand conditions
Amid disruptions caused by Covid-19, the Finance Minister has referred to an Act of God while businesses are looking at a legal provision, force majeure, to cut losses. Note the key differences between the Act of God and Force Majeure. Evoking “Act of God” The force majeure or “Act of God” clause has its origins …
The International Centre for Automotive Technology (ICAT) is developing a technology platform for the automotive industry called ASPIRE – Automotive Solutions Portal for Industry, Research and Education. ASPIRE Portal The key objective of this portal is to facilitate the Indian Automotive Industry to become self-reliant by assisting in innovation and adoption of global technological advancements. …