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Economy & Finance Current Affairs

Latest Economy & Finance current affairs and general knowledge for UPSC, SSC, Banking and State PCS — with key points and exam facts.

Government Invokes Essential Commodities Act for Tiered Natural Gas Allocation

The Ministry of Petroleum and Natural Gas (MoPNG) has invoked the Essential Commodities Act, 1955, to implement a tiered allocation structure for natural gas, prioritizing certain sectors. Domestic piped natural gas (PNG), Compressed Natural Gas (CNG) for vehicular fuel, and Liquified Petroleum Gas (LPG) production are among the priority sectors, along with fertilizer manufacturing and industrial consumers. Priority allocation ensures uninterrupted supply at "hundred per cent" for these sectors, based on their average consumption over the previous six months. Fertilizer plants will receive 70% of their consumption requirements. This move aims to manage supply amid shortages and ensure critical sectors are served efficiently.

  • The government invoked the Essential Commodities Act, 1955, for tiered allocation of natural gas.
  • Priority sectors include domestic PNG, CNG for vehicles, LPG production, fertilizer manufacturing, and other industrial consumers.
  • Priority sectors will receive 100% uninterrupted supply based on previous six months' average consumption.
11 Mar 2026 Read more

New Gas Sources to Alleviate Shortage, Officials Confirm

India's natural gas supply crunch is expected to be temporary, as higher global prices make imports from distant sources like the U.S. and Norway economically viable. While these shipments take about two months to arrive, potentially prolonging the interim shortage, officials confirm diversification of supplies. Domestic LPG production has increased by 10% after prioritizing household supplies over industrial users. The government has also formed a committee to address commercial LPG shortages faced by restaurateurs, ensuring uninterrupted supply to domestic households remains the utmost priority. This strategic shift aims to secure energy needs despite global market fluctuations.

  • India's natural gas shortage is expected to be short-lived due to the economic viability of importing from new sources like the U.S. and Norway.
  • Domestic LPG production has increased by 10% by prioritizing supplies to households.
  • Shipping from distant sources will cause an interim delay of approximately two months for new supplies to arrive.
11 Mar 2026 Read more

Amartya Sen's Capabilities Approach: Development as Expansion of Choices and Freedoms

The article explores Amartya Sen's 'capabilities approach,' which defines development as the expansion of real freedoms and choices, rather than merely economic growth. It emphasizes that development should enable individuals to lead lives they value, focusing on what people are actually able to do and be. The piece critiques traditional development metrics like GDP and highlights the importance of social opportunities, education, and health in fostering human well-being. It also touches upon the challenges of implementing this approach in a political environment where outcomes are often reduced to technical tasks, overlooking the moral and ethical dimensions of development.

  • Amartya Sen's capabilities approach defines development as the expansion of real freedoms and choices, not just economic growth.
  • It focuses on what people are actually able to do and be (functionings and capabilities) rather than just income or resources.
  • The approach emphasizes the importance of social opportunities, education, and health as crucial for human well-being and development.
10 Mar 2026 Read more

RBI Conducts Open Market Operations to Inject Liquidity Amidst West Asia War Concerns

The Reserve Bank of India (RBI) announced Open Market Operations (OMO) to purchase Government of India securities (G-Secs) worth ₹1,00,000 crore in two tranches of ₹50,000 crore each on March 9 and 13. This move is aimed at injecting liquidity into the financial system to offset constraints from advance tax outflows and ensure sufficient funds for bank lending. The decision comes amidst concerns over the prolonged war in West Asia and its potential impact on the Indian economy, including a depreciating rupee and surging crude oil prices, which pose significant threats to India's trade deficit, GDP growth, and inflation.

  • The RBI is conducting Open Market Operations (OMO) to buy Government of India securities (G-Secs) worth ₹1,00,000 crore.
  • The primary objective of this OMO is to inject liquidity into the financial system.
  • This measure aims to counteract liquidity constraints caused by advance tax outflows and support bank lending.
10 Mar 2026 Read more

National Security Cannot Be Outsourced, India Faces Intensified Strategic Challenges in West Asia

The article argues that India's national security cannot be outsourced, especially given the escalating tensions in West Asia. It highlights the region's volatility, marked by attacks on energy installations and the blockade of the Strait of Hormuz, which directly impact India's energy security. The author criticizes India's default mode of reaction when its interests are threatened, such as the assassination of Khamenei or the torpedoing of an Iranian naval vessel. The piece emphasizes the need for India to adopt a more proactive and robust security architecture, moving beyond reliance on external powers and developing self-reliance in military equipment and strategic planning.

  • India's national security strategy needs to be self-reliant and cannot depend on external powers.
  • The escalating conflict in West Asia, including threats to energy installations and the Strait of Hormuz, directly impacts India's security and economy.
  • India needs to move beyond a reactive stance and adopt a proactive, robust security architecture.
10 Mar 2026 Read more

Iran War Intensifies India's Strategic Challenge, Necessitating Balanced Regional Policy

The article analyzes the ongoing Iran war, framing it as an attempt to destroy the Iranian ideology and achieve regime change rather than merely a military strike. It discusses the U.S. and Israel's objectives, Iran's decentralized response, and the broader regional implications, including threats to energy security and the Strait of Hormuz. The author argues that the conflict exposes the U.S.'s inability to protect Gulf states and complicates India's strategic space. India needs a more balanced regional policy, beyond just bilateral relations, to navigate complex dynamics and protect its interests amidst the U.S.-China rivalry and a volatile West Asia.

  • The Iran war is primarily aimed at regime change and destroying Iranian ideology, not just military targets.
  • The conflict has exposed vulnerabilities in U.S. security guarantees for Gulf states and intensified regional instability.
  • India's strategic space is constrained by the U.S.-China rivalry and the volatile situation in West Asia.
10 Mar 2026 Read more

Conversations with Iran to Continue, Jaishankar Emphasizes Security and Trade

External Affairs Minister S. Jaishankar stated that commitment to protect Indians in West Asia is an "overriding priority" and that security and trade flows are "always paramount." He confirmed ongoing diplomatic-level conversations with Iran and the U.S. and discussed efforts to help stranded Indian tourists and operate commercial flights. India also facilitated the docking of the Iranian naval vessel IRIS Lavan at Kochi, following a request for three ships. Jaishankar briefed MPs on assurances from Gulf states regarding the well-being of the Indian community and reiterated India's commitment to energy security amidst regional attacks and the Strait of Hormuz blockade.

  • External Affairs Minister S. Jaishankar affirmed India's commitment to protecting its nationals and ensuring energy security in West Asia.
  • Diplomatic conversations are ongoing with both Iran and the U.S. to manage regional tensions and ensure Indian interests.
  • India facilitated the docking of the Iranian naval vessel IRIS Lavan at Kochi, demonstrating humanitarian assistance and diplomatic engagement.
10 Mar 2026 Read more

Finance Commission grants to cities remain limited, hindering urban development and governance

The article examines why Finance Commission (FC) grants to cities remain limited, despite the growing importance of urban areas. It highlights that cities receive a disproportionately small share of the country's GDP and central transfers, with per capita devolution showing no significant change. The 16th FC emphasizes that cities must find avenues to increase their own revenue and expand the tax base. The article points out that while FCs recommend grants for specific services like water supply and sanitation, they often lack objective parameters for allocation and do not adequately address the overall financial needs of cities. This limitation hinders urban development and effective local governance.

  • Indian cities receive a disproportionately small share of central transfers and GDP, limiting their financial autonomy.
  • Finance Commissions recommend grants for specific urban services but often lack objective parameters for equitable allocation.
  • The 16th Finance Commission emphasizes cities' need to enhance their own revenue generation and expand their tax base.
9 Mar 2026 Read more

U.S. Supreme Court rejected Trump's steel and aluminum tariffs, citing lack of authority

The U.S. Supreme Court rejected former President Trump's steel and aluminum tariffs, ruling he overstepped his authority under the International Emergency Economic Powers Act (IEEPA). The Court emphasized that while the President has broad powers to regulate trade during emergencies, these powers are not unlimited and require specific congressional authorization for tariffs. The ruling highlighted that the President cannot impose tariffs based on "objective parameters" without clear legislative backing. This decision underscores the importance of checks and balances, clarifying the limits of presidential power in trade policy and potentially impacting future trade disputes.

  • The U.S. Supreme Court rejected Trump's steel and aluminum tariffs, citing a lack of presidential authority under the IEEPA.
  • The Court clarified that presidential powers to regulate trade, even during emergencies, are not absolute and require specific congressional authorization.
  • The ruling emphasizes the constitutional principle of checks and balances, limiting executive overreach in trade policy.
9 Mar 2026 Read more

Duty cuts on cancer drugs to ease financial burden, especially for poorer patients

The article analyzes the financial burden of cancer treatment in India, noting that it is three times higher than for other ailments. Medicines constitute the largest component of expenditure, especially in public hospitals in rural areas. While private hospitals charge more, the relative financial strain is higher in the government sector, particularly for the poor. The Budget's proposal for full exemption of basic customs duty on 17 cancer-related drugs is a crucial intervention. Data shows that the cost multiplier for cancer treatment in public hospitals increased from 4x in 2014 to 5x in 2017-18, highlighting the deepening financial strain on patients.

  • Cancer treatment is significantly more expensive than other ailments, with medicines being the largest cost component.
  • Despite lower absolute costs, the relative financial burden of cancer treatment is higher for patients in public hospitals, especially in rural areas.
  • The Union Budget's full exemption of basic customs duty on 17 cancer-related drugs is a critical step to reduce patient costs.
9 Mar 2026 Read more

Recognising and formalizing 'volunteer' care work crucial for India's care economy

The Union Budget 2026-27 proposes to train 1.5 lakh multiskilled caregivers, yet it overlooks the five million women already serving as Accredited Social Health Activists (ASHAs), Anganwadi workers, and mid-day meal workers. These women, classified as 'volunteers', perform essential public services but receive meager honorariums, lack formal contracts, and basic benefits, reflecting a "care penalty" rooted in gendered norms. The article argues that their work, being recurrent and central, should be converted into permanent posts, as supported by the Supreme Court's ruling in Dharam Singh & Anr. vs State of U.P. & Anr. Formalizing their roles and extending NSQF-aligned training to them is essential for India to build a robust care ecosystem and achieve its health ambitions.

  • India's Budget focuses on training new caregivers but neglects existing 'volunteer' care workers like ASHAs and Anganwadi workers.
  • These women perform essential, continuous services but lack formal employment benefits and receive meager honorariums due to gendered perceptions of care work.
  • The Supreme Court's ruling in Dharam Singh & Anr. vs State of U.P. & Anr. supports converting recurrent 'volunteer' roles into permanent posts.
9 Mar 2026 Read more

Canada-India economic alignment strengthens with renewed political will and trade agreements

The article discusses the emerging economic alignment between Canada and India, marked by Canadian Prime Minister Mark Carney's recent visit and the formal relaunch of Comprehensive Economic Partnership Agreement (CEPA) negotiations. Both nations aim to double bilateral trade to $70 billion by 2030. Key areas of cooperation include energy (uranium supply agreement), critical minerals, technology, financial services, and agriculture. The renewed political resolve and strategic alignment are expected to create opportunities for partnerships, joint ventures, and investments, with Canada seeking to diversify economic partnerships amid geopolitical uncertainty.

  • Canadian Prime Minister Mark Carney's visit to India signaled a renewed political will to strengthen economic ties.
  • The Comprehensive Economic Partnership Agreement (CEPA) negotiations have been formally relaunched, aiming to double bilateral trade to $70 billion by 2030.
  • Key sectors for cooperation include energy (uranium), critical minerals, technology, financial services, and agriculture.
9 Mar 2026 Read more

Rules for new rural job Act, VB-G RAM G Act 2025, not yet framed

The Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) Act, 2025, which replaces MGNREGA, is awaiting the framing of rules under 11 categories before implementation. The Union Rural Development Ministry is consulting with State governments on tricky issues like a formula for "normative allocation" based on objective parameters and categorizing Gram Panchayats. States also need to enroll themselves on DBT Sparsh, conduct e-Know Your Customer (eKYC) verification for job cards, and onboard Yuktdhara, a geospatial planning portal. The Centre has six months to implement the scheme from the commencement date, which is yet to be notified.

  • The Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) Act, 2025, is set to replace MGNREGA.
  • The Centre needs to frame rules under 11 categories, including a formula for "normative allocation" for States based on objective parameters.
  • States are required to implement several steps like DBT Sparsh enrollment, eKYC verification for job cards, and using the Yuktdhara portal.
9 Mar 2026 Read more

Canada-India Uranium Deal Boosts India's Nuclear Energy Security and Power Programme

India signed a C$2.6-billion deal with Canadian company Cameco for 10,000 tonnes of uranium supply from 2027 to 2035, enhancing its energy security. India's domestic uranium reserves are low-grade, making imports crucial for its civilian nuclear power programme, which currently operates 24 reactors with 9 GW capacity and aims for 100 GW by 2047. The deal falls under the 2010 India-Canada Civil Nuclear Cooperation Agreement, which requires India to provide "fissionable material accounts." Uranium is also used for research, medical isotopes, and defense purposes, including nuclear warheads and submarines.

  • The uranium deal with Canada is crucial for India's energy security, supplementing its low-grade domestic reserves.
  • India's nuclear power program, transitioning through three stages, aims for significant capacity expansion by 2047.
  • The deal operates under the India-Canada Civil Nuclear Cooperation Agreement, which includes specific accountability requirements.
8 Mar 2026 Read more

The Strategic Importance of the Strait of Hormuz and Its Impact on Global and Indian Energy Security

The Strait of Hormuz is a critical chokepoint connecting the Persian Gulf to the Arabian Sea, through which one-third of the world's seaborne crude oil and one-quarter of global LNG pass. Tensions in West Asia, particularly involving the US and Iran, frequently disrupt shipping and raise concerns about global energy supplies. India is heavily dependent on this strait, with nearly two-thirds of its crude oil and half of its natural gas imports routed through it. To mitigate risks, India is exploring alternative supply routes and has invoked emergency powers for domestic refineries to ramp up LPG production.

  • The Strait of Hormuz is a globally significant maritime chokepoint for oil and natural gas transit.
  • Geopolitical tensions in West Asia directly impact the security and navigability of the Strait, affecting global energy markets.
  • India has a substantial reliance on the Strait of Hormuz for its energy imports, making disruptions a major concern for its energy security.
8 Mar 2026 Read more

Indian Navy May Escort Ships in Persian Gulf Amid West Asia Crisis and Strait of Hormuz Disruptions

The Indian government is considering deploying Navy ships to escort Indian-flagged vessels stranded in the Persian Gulf, with a decision expected soon. This move comes as approximately 10% of the stranded oil tankers and gas carriers are Indian-flagged. The Indian Navy has previously conducted Operation Sankalp to ensure maritime security in the Gulf region, including actions against Houthi rebels. While Iran has promised not to attack neighboring countries, India has also diversified its crude oil supplies, with 70% now sourced without crossing the Strait of Hormuz, aiming to prevent retail price hikes for petrol and diesel.

  • India is considering deploying its Navy to escort stranded ships in the Persian Gulf, emphasizing maritime security.
  • Operation Sankalp has been a key Indian Navy initiative for ensuring maritime security in the Gulf region, including countering Houthi attacks.
  • The Strait of Hormuz is a critical chokepoint, and disruptions there significantly impact global and Indian energy supplies.
8 Mar 2026 Read more

Amid West Asia Crisis, Cooking Gas Prices Raised; India Considers Navy Escort for Stranded Ships

Domestic cooking gas prices were hiked by ₹60 per cylinder, and commercial cylinders by ₹114.50, attributed to a sharp rise in global prices due to the West Asia conflict disrupting tanker movement through the Strait of Hormuz. Non-subsidised LPG now costs ₹913 per 14.2-kg cylinder in Delhi. The government is considering deploying Navy ships to escort Indian-flagged vessels stranded in the Persian Gulf, as India relies heavily on imports via the Strait of Hormuz. Emergency powers have been invoked to ramp up domestic LPG production.

  • Domestic and commercial cooking gas prices have been significantly increased due to global price surges and disruptions in West Asia.
  • The Strait of Hormuz is a crucial waterway for India's crude oil and natural gas imports, and its disruption impacts energy security.
  • The Indian government is contemplating deploying Navy ships to escort Indian-flagged vessels in the Persian Gulf to ensure maritime security.
8 Mar 2026 Read more

Merchant ships stranded near Strait of Hormuz due to West Asia conflict and rising insurance costs

The escalating conflict in West Asia has led to numerous merchant ships being stranded upstream of the Strait of Hormuz, a critical chokepoint for global oil and gas supplies. The U.S. has pledged to deploy its Navy to escort ships and fund war risk insurance. War risk insurance premiums for transit through the Strait have surged by 10 to 15 times, reaching 1-3% of the vessel's cost, due to increased risks including attacks on vessels like Sonangal Namibe and Skylight. Governments like Denmark have started providing such cover for their ships. The crisis has resulted in a 95% decrease in ship transits through the Strait, impacting global trade and energy security.

  • The West Asia conflict has stranded merchant ships near the Strait of Hormuz, a vital global shipping lane.
  • War risk insurance premiums for transit through the Strait of Hormuz have increased dramatically, up to 15 times normal rates.
  • Attacks on vessels, including crude oil carriers like Sonangal Namibe and sanctioned ships like Skylight, highlight the heightened risks.
7 Mar 2026 Read more

Empowering women farmers for equity, health, and nutrition on International Women's Day

On International Women's Day 2026, the focus is on equal rights and justice for women farmers, aligning with 2026 being the International Year of the Woman Farmer. Women farmers face systemic exclusion due to lack of land titles and formal recognition, hindering access to credit, insurance, and extension services. The 'feminisation of agriculture' means women bear increased workloads, leading to health issues and malnutrition. Despite India's right-to-food framework, women's nutritional improvements are uneven. Key priorities include enhancing their visibility in law and data, strengthening land rights, integrating nutritional objectives into food systems, and improving access to technology and extension services.

  • International Women's Day 2026 emphasizes equal rights and justice for women farmers, coinciding with the International Year of the Woman Farmer.
  • Women farmers face systemic exclusion from formal recognition and land rights, limiting their access to essential agricultural resources.
  • The 'feminisation of agriculture' has increased women's workload, contributing to severe health issues and malnutrition among women and girls.
7 Mar 2026 Read more

U.S. 'allows' India to buy Russian oil for 30 days amid global supply constraints

The U.S. Treasury Department issued an order permitting India to import Russian oil for 30 days, aiming to mitigate price and supply shocks caused by global constraints, including Iran's blockade of the Strait of Hormuz. Analysts suggest Russian oil may no longer be available at a discount due to competition from China. India's current fuel reserves stand at 50 days. The move comes as Brent crude prices have surged and India's Russian oil imports had previously fallen to a 44-month low in January 2026. The U.S. views India as an essential partner and anticipates increased purchases of U.S. oil.

  • The U.S. Treasury Department granted India a 30-day reprieve to import Russian oil to alleviate global energy pressure.
  • Global oil supplies are constrained due to Iran's blockade of the Strait of Hormuz, leading to increased Brent crude prices.
  • India's current fuel reserve is 50 days, split equally between crude oil and petrol/diesel.
7 Mar 2026 Read more

Andhra Pradesh introduces incentives for families to have 3 children to raise Total Fertility Rate

Andhra Pradesh Chief Minister N. Chandrababu Naidu introduced a Draft Population Management Policy aimed at raising the Total Fertility Rate (TFR) from 1.5 to an optimal level of 2.1. The policy seeks to reverse the declining fertility rate and prepare the state for an ageing society by 2047. Incentives include ₹25,000 at delivery for a third child, ₹1,000 monthly assistance for five years, and free education until age 18. The state's TFR is mirroring lower fertility states like Tamil Nadu (1.4) and Kerala (1.6), necessitating a new policy playbook to prevent a shrinking workforce and economic cripple.

  • Andhra Pradesh introduced a Draft Population Management Policy to increase its Total Fertility Rate (TFR).
  • The policy aims to raise TFR from 1.5 to an optimal level of 2.1 to counter an ageing society and shrinking workforce.
  • Incentives for families having a third child include financial aid at delivery, monthly assistance, and free education.
6 Mar 2026 Read more

Iran's IRGC Claims Complete Control of Strait of Hormuz Amid Escalating West Asia War

Iran's Revolutionary Guards (IRGC) announced they have total control of the Strait of Hormuz, a vital global energy waterway, amidst the fifth day of the West Asia war. This claim follows new Israeli air strikes on the Iranian capital and missile/drone barrages across the region. Energy prices have surged, and major shipping firms have suspended transit through the strait, with reports of ships being attacked. The Omani navy rescued crew members from a Malta-flagged container ship struck by missiles while transiting the Strait, underscoring the heightened risks in the region.

  • Iran's Revolutionary Guards claim full control over the Strait of Hormuz, a critical chokepoint for global energy transit.
  • The announcement comes amidst escalating hostilities in West Asia, including Israeli strikes on Iran and regional missile attacks.
  • The conflict has led to a surge in energy prices and disruptions in global shipping, with major firms suspending transit through the Strait.
5 Mar 2026 Read more

West Asia War Stresses India's Oil and Gas Imports, Stranding Tankers

The escalating conflict in West Asia is severely impacting India's oil and gas imports, with around 200 international crude oil and product tankers, including Indian-flagged vessels, stranded in the Persian Gulf due to a stoppage of ship movement across the Strait of Hormuz. Qatar has halted LNG production, disrupting supplies to India, which relies on long-term contracts for 40% of its annual natural gas needs. This situation threatens to erode CNG's price advantage and could lead to a shift towards EVs, despite India having a 'reasonably comfortable position' with crude oil reserves.

  • The ongoing West Asia conflict is causing significant disruptions to India's oil and gas imports, leading to numerous tankers being stranded.
  • The Strait of Hormuz, a critical global energy transit point, has experienced a total stoppage of ship movement, affecting supply chains.
  • Qatar's halt in LNG production directly impacts India, which depends heavily on Qatari long-term contracts for its natural gas needs.
5 Mar 2026 Read more

Centre inks ₹5,000-cr. deal for ALH Mk-III helicopters and Shtil missiles to boost maritime security

The Defence Ministry has signed contracts worth ₹5,083 crore to bolster India's maritime security. This includes the acquisition of six Advanced Light Helicopters (ALH) Mk-III for the Indian Coast Guard from Hindustan Aeronautics Ltd. (HAL) and Shtil surface-to-air vertical launch missiles for the Indian Navy from Russia's JSC Rosoboronexport. The ALH Mk-III choppers, valued at ₹2,901 crore, are indigenously designed and manufactured, enhancing Coast Guard capabilities for protecting artificial islands, offshore installations, and marine environment, while also generating 65 lakh man-hours of employment. The Shtil missiles, valued at ₹2,182 crore, will significantly improve the Indian Navy's air defence capabilities against aerial threats, reinforcing the India-Russia defence partnership.

  • India's Defence Ministry has signed contracts worth ₹5,083 crore to enhance maritime security.
  • The deals include six indigenously designed Advanced Light Helicopters (ALH) Mk-III for the Indian Coast Guard from HAL.
  • Shtil surface-to-air vertical launch missiles will be acquired from Russia for the Indian Navy to boost air defence capabilities.
4 Mar 2026 Read more

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