Tag: Current Socio-Economic Problems


Current Socio-Economic Problems Ban on onion export The Directorate General of Foreign Trade (DGFT) has imposed a ban on the export of onions till March 31, 2024 to curb the surging local prices of the product. On August 19, the Union government had imposed a 40% duty on the export of onions until December 31. Current Economic Trends Monetary Policy Committee (MPC) The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) made the following important decisions To keep key interest rates unchanged. Raised its GDP growth projection for 2023-24 to 7% from 6.5%. Retained its average inflation forecast at 5.4% Warned that inflation could spike through November and December 2023


Current Socio-Economic Problems Ban on Basmati Rice The Union government banned the export of Basmati rice valued at less than $1,200 a tonne. The step was taken to restrict possible “illegal” shipment of plain white rice by wrongly classifying it as Basmati rice.  The export of non-Basmati white rice was prohibited on July 20, 2023 citing the rise in domestic prices. Note  Agricultural & Processed Food Products Export Development Authority (APEDA) is the agency responsible for regulation of export of Basmati rice.  In September 2022, the Centre banned the export of broken rice. India ranks second in the production of rice in the world.  West Bengal is the largest producer of Rice in India.

RBI’s launched special operation to forcefully lower interest rates.

Toforcefully bring down the rate of interest in the economy, the RBI would buy Government Securities (G-Secs) with a 10- years maturity while, at the same time, sell government bonds with just one-year maturity both worth ₹. 10,000 crore each. Globally termed as ‘Operation Twist’for quite sometime, economics have been expectating the Central bank to launch this special manoeuvre so that rate cuts by it could lead to a commensurate drop in the rate of interest in the economy. ‘Operation Twist’ is the name given to a monetary policy tool that the Jerome Powell- led US Federal Reserve had started to influence the rate of interest in the world’s largest economy. The process involves buying and selling of both short-and long-term government bonds- depending upon its objective relating to rates-at the same time.