Economy~14 min read

Money, inflation, fiscal, external

RBI tools, CPI/WPI, Budget deficits, GST, IMF/World Bank/WTO.

RBI: repo, SDF, MSF, CRR, SLR, OMO, forex swaps. Monetary Policy Committee (6 members) targets CPI inflation 4% ±2% (flexible targeting).
CPI-Combined is the targeting index (CSO/NSO). WPI is office of Economic Adviser, DPIIT.
Budget: Revenue vs Capital; Fiscal deficit = total expenditure − (revenue receipts + non-debt capital receipts). Primary deficit = fiscal − interest. FRBM path.
GST (101st Amendment, 2017): destination-based; CGST+SGST / IGST. Compensation cess. GSTN.
Finance Commission vs Planning: FC is constitutional; Planning Commission replaced by NITI Aayog (2015) — think tank, no grants power.
BoP: current account (trade, invisibles) + capital account. CAD financed by capital inflows. Rupee: managed float.
IMF: quota, SDR, Article IV. World Bank Group: IBRD, IDA, IFC, MIGA, ICSID. WTO: 1995, MFN, national treatment, dispute settlement.
Labour market reforms are often asked via codes, EPFO payroll data, and female LFPR.

Video Lectures & Explanations

Curated educational video lectures explaining this topic for UPSC EPFO

Focus: RBI Act 1934 Section 45ZB, MPC 4% ±2% inflation corridor, liquidity management

Focus: FRBM glide path, Current Account Deficit vs Capital Account, IMF & WTO institutions