Context Finance Ministry has recently announced a reduction in the base corporate tax rate to 22% from 30% as part of stimulus measures to reverse slowing economic growth. The effective tax rate for domestic corporates, inclusive of surcharges, will fall from 34.94% to 25.17% if they stop availing any other tax sops. For new manufacturing… Continue reading [Burning Issue] Corporate Tax Reduction

Context India’s real (or inflation-adjusted) GDP grew at 5 per cent in the June 2019 quarter of financial year 2019-20 (Q1FY20), the slowest growth in six years (25 quarters). With GDP growth falling consecutively for the fifth time, India has slipped to fourth position globally in terms of real growth rates. The Indian economy is… Continue reading [Burning Issue] Slowdown of Indian Economy

Context On August 26, the central board of the Reserve Bank of India (RBI) had decided to transfer a surplus of Rs 1.76 lakh crore to the government-its highest transfer ever-sparking a fierce debate. The government was acting on the recommendations of a committee chaired by former RBI governor Bimal Jalan, on capital transfer. RBI’s… Continue reading [Burning Issue] RBI Surplus Transfer

Context In his Independence Day address PM has announced the creation of the post of Chief of Defence Staff (CDS) to provide “effective leadership at the top level” to the three wings of the armed forces, and to help improve coordination among them. Background India has had a feeble equivalent known as the Chairman, Chiefs… Continue reading [Burning Issue] Appointing the Chief of Defence Staff (CDS)

Context The ruling government has offered several paradigm changing cases for the field of strategic studies and international relations this year, such as the Balakot airstrike and abrogation of Article 370. Now, with Raksha Mantri’s statement about India’s ‘No First Use’ of nuclear arms pledge, many observers in and outside India are jumbled to consider… Continue reading [Burning Issue] India’s Nuclear No First Use Policy

Context China and the United States have been engaged in a trade war through increasing tariffs and other measures since 2018. The US is non-surprisingly the first to impose tariffs on Chinese goods to press demands for an end to policies that Washington says hurt US companies competing with Chinese firms. China too responded with… Continue reading [Burning Issue] US-China Trade War and Its Impact on India

Context While India and the US claim to be strategic partners, the bones of contention are now more numerous and more substantial than they’ve been before. The relations between the two countries had been plateauing for months with Trump being preoccupied with domestic and international battles. The whim of US Administration under Trump and recent… Continue reading [Burning Issue] India US relations in the backdrop of recent hiccups