Recent Economic Trends

Recent Economic Trends
RBI increase repo rate 35 bps

  • India (RBI) raised the policy repo rate by 35 basis points (bps) to 6.25%, downshifting gears from consecutive increases of 50 bps, and scaled down GDP growth hopes for the year to 6.8% from 7%.
  • A 100 basis points equals one percentage point.
  • The central bank retained its inflation projection for 2022-23 at 6.7%, noting that ination will ease but stay well above the 6% upper tolerance limit set for the RBI.

Reports and Indices
Global Wage Report 2022-23

  • Report, by International Labour Organisation (ILO), presents an analysis of how concurrent crises – COVID-19 pandemic followed by cost-of-living crisis – have impacted wages and purchasing power across countries and regions.

Key highlights of the Report

  • Rising inflation is causing real wage growth to dip into negative figures in many countries thereby reducing purchasing power.
  • On average, Wage employees lost six weeks of wages due to COVID-19 crisis.
  • Low wage earners, workers in the informal economy and women wage earners group suffered most.

India Inequality Report 2022 : Digital Divide released by OXFAM India

  • It is an annual report to highlight ongoing inequality crises in the country.
  • The 2022 report highlights the extent of digital divide in India and its impact on essential services such as education, health and financial inclusion.
  • Oxfam India is a non-profit organization working to support child education, empowering women & fighting against inequality in India.

Key highlights of report

  • 61% of men owned mobile phones in 2021, compared to just 31% women.
  • Only 31% of the rural population uses the Internet compared to 67% of their urban counterparts.
  • Use of computer devices has decreased (post-COVID) in rural areas. Likelihood of a digital payment by the richest 60% is four times more than the poorest 40% individuals, households, businesses
  • Maharashtra has the highest internet penetration, while Bihar has the lowest.

Recommendations to bridge digital divide

  • Improve internet availability in rural and hard-to-reach areas through community networks and public Wi-Fi/ internet access points.
  • Government needs to improve affordability by investing in digital infrastructure, bringing a strong regulatory framework and lowering taxes on computers and phones.
  • Conduct digital literacy camps, especially in rural India, and digitize panchayats and schools.
  • Grievance redressal mechanism to handle EdTech and Healthtech related complaints.


  • Digital divide refers to “the gap between and geographic areas at different socio-economic levels with regard to both their opportunities to access information and communication technologies (ICTS) and to their use of the internet for a wide variety of activities.
  • This is different from the State of Inequality in India Report released by the Economic Advisory Council to the Prime Minister (EAC-PM).
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