Dive into key economic concepts, from understanding labor market trends and the impact of deflation to India’s significant strides in green energy, sustainable farming, and digital maritime initiatives, alongside updates on key government schemes and tax structures.
Understanding Deflation and Its Impact
Deflation occurs when prices continuously fall over time. This economic phenomenon can lead to consumers delaying purchases, hoping for even lower prices in the future. Such behavior widens the gap between supply and demand, pushing prices down further and creating a challenging economic cycle.
For example, China’s economy has recently faced deflationary pressures, partly due to a recovering consumer base and a struggling real estate market. Falling property values eroded consumer confidence, reduced overall demand, and hindered the country’s internal economic growth engines.
Decoding India’s Labor Market with PLFS
The Periodic Labour Force Survey (PLFS) is a crucial tool for understanding India’s employment landscape. Its main objectives are to estimate key indicators like the Worker Population Ratio, Labour Force Participation Rate, and the Unemployment Rate.
These estimates are provided for urban areas on a quarterly basis using the ‘Current Weekly Status’ (CWS) and annually for both rural and urban areas under both ‘Usual Status’ and CWS methodologies. Recent data for June showed India’s unemployment rate holding steady, though the Labour Force Participation Rate saw a slight decline.
India’s Green Energy Leap
India has achieved a significant environmental milestone, with non-fossil fuel sources now accounting for over 50% of the nation’s installed electricity capacity as of June 2025. This achievement comes five years ahead of its pledged target under the Paris Agreement.
Non-fossil fuel sources include renewables (like solar and wind), large hydroelectric projects, and nuclear energy. While renewables contribute the most, nuclear energy adds 9 GW to the non-fossil fuel mix. India currently ranks fourth globally in total renewable installed capacity, trailing only China, the US, and Brazil.
Maritime Initiatives for Business and Environment
India’s Ministry of Ports, Shipping and Waterways has launched several initiatives to boost the maritime sector. SAGAR-SETU is a mobile application designed to enhance the ease of doing business by providing real-time port operations and access to crucial data for stakeholders.
The ‘Harit Sagar’ Green Port Guidelines aim for a Zero Carbon Emission Goal, promoting eco-friendly practices in port construction, operation, and maintenance. Additionally, ‘Sagar Manthan’ is a digital platform offering real-time performance monitoring for Ministry projects and key indicators, including the Maritime India Vision 2030.
Sustainable Farming: The Zero Tillage Approach
Zero tillage, also known as no-till farming, is an agricultural practice where crops are grown without disturbing the soil through traditional plowing. This method involves directly planting seeds into the ground, often using specialized equipment that creates furrows without turning the soil.
This approach offers significant environmental benefits. It helps in retaining the natural soil structure, enhances soil fertility, dramatically minimizes soil erosion, and improves the soil’s capacity to retain water.
PM-KISAN Scheme Overview
The PM Kisan Samman Nidhi Yojana is a crucial income support scheme for farmers in India. It is a Central Sector Scheme, meaning it is fully funded by the Government of India, rather than being centrally sponsored with state contributions.
Under this scheme, an annual income support of ₹6,000 is provided to all landholding farmer families. This amount is disbursed in three equal installments to help farmers meet their financial needs for agricultural inputs and household expenses.
The Debate Around HTBt Cotton
HTBt cotton, a genetically modified (GM) variant, allows cotton plants to resist the application of glyphosate, a common herbicide used for weed control. However, it is important to note that HTBt cotton is currently not officially approved for commercial cultivation in India.
Despite being developed by private players, its sale, production, and storage are illegal in the country. India has only approved the commercial release of Bt cotton, which incorporates a gene from the bacterium Bacillus thuringiensis for pest resistance, but not the herbicide-tolerant version.
GST Slabs: What’s in the 12% Category?
Under India’s Goods and Services Tax (GST) regime, various goods and services are categorized into different tax slabs. The 12% GST slab includes a range of everyday items and products. This category covers many packaged food items such as condensed milk, nuts, dates, sausages, and fruit juices.
Household goods like cotton products, jute handbags, furniture, and sewing machines, along with some textile items, also fall under the 12% slab. Additionally, essential medical items, including medical-grade oxygen, gauze, bandages, and diagnostic kits, are taxed at this rate. It’s worth noting that luxury products and tobacco typically fall into the higher 28% slab.
- India achieved its non-fossil fuel capacity target years ahead of schedule.
- Deflation can lead to a negative spiral of reduced consumer spending and falling prices.
- Zero tillage farming significantly improves soil health and water retention.
Stay informed on these and other critical economic developments to understand the dynamic landscape of India’s economy and policies.
