Tag
#Economic Growth
Does Inflation Targeting Work in India? Explained
Inflation Targeting, which is a decade-old framework for India (4% CPI), is facing difficulties due to a flat Phillips curve, unanchored expectations, and supply shocks. Rate increases could negatively impact growth without reducing inflation. Future actions should include monetary policies and supply-side measures, better communication, fiscal coordination, and India-specific models.
GST Revenue Grows 14.8% to Nearly ₹2 Lakh Crore in August
GST collections reached ₹1.998 lakh crore, growing by 14.8%. However, several concerns remain: domestic growth at 9.3% is lower than import growth of 29%, while refunds have increased by 72.6%. The inverted structure of the GST duties is still a concern. Moving ahead, rate rationalisation and compliance are needed.
Gross FDI hit 15-year high of $30.7 billion in April-June 2026
Gross FDI inflow into India registered a 15-year record of $30.7 billion in Q1 2026, showing an increase of 46% from the previous quarter, led by the manufacturing sector. Net FDI inflow has become positive with $1.3 billion recorded in June. Challenges are posed by large outflows, concentration of investors, and the requirement for good-quality investments.