Basic Economic Concepts — Current Affairs 2026
Current Affairs Connections
RBI Maintains Repo Rate at 6.5% in December 2024 Policy Review
December 2024The RBI's decision to maintain the repo rate demonstrates the practical application of monetary policy concepts in managing inflation-growth trade-offs. With CPI inflation at 5.5% and GDP growth projected at 6.8%, the central bank's stance reflects the complex balancing act between price stability and economic growth that students must understand for both prelims and mains questions.
UPSC Angle: Expect questions on monetary policy transmission, inflation targeting framework, and the relationship between interest rates and economic growth in upcoming exams
India's GDP Growth Slows to 5.4% in Q2 2024-25
November 2024The slower GDP growth rate highlights the importance of understanding national income accounting and growth measurement concepts. The deceleration from 6.7% in Q1 to 5.4% in Q2 demonstrates how quarterly GDP data reflects economic cycles and policy impacts, making it crucial for students to understand GDP calculation methods and interpretation.
UPSC Angle: Questions may focus on factors affecting GDP growth, sectoral contributions to growth slowdown, and policy measures to revive economic momentum