अविरल

  Aviral Akshat 1 , Chellsea Lauhka 1 , Poulami Sarkar 1 aviralakshat.iitd@gmail.com, chellsea.lauhka31@gmail.com, poulamisarkar343@gmail.com 1 Indian Institute of Technology, Delhi As India enters the mid-2020s, its fiscal outlook is drawing increased scrutiny. Public spending surged in the aftermath of the global pandemic, pushing up both central and general government debt-to-GDP ratios. These trends have sparked concern in policy circles and among international observers. The International Monetary Fund (IMF) has warned that under adverse conditions, general government debt could be near 100% of GDP by FY2027–28 —particularly if climate-related investments rise without matching revenue efforts. Meanwhile, provisional GDP estimates for FY2024–25 show a slowdown to 6.5%, the weakest growth since the pandemic year of 2020–21. This mix of softening growth and elevated debt highlights the challenge of maintaining fiscal discipline while ensuring sustained public investment—both ess...

                                 Illustration: Ramandeep Kaur/ThePrint 1 Aviral Akshat ,  aviralakshat.iitd@gmail.com 1 Indian Institute of Technology, Delhi Note - This research was conducted by the author for his term paper during “Spring Semester of 2025” for the course “ HSL717 - Perspectives on Indian Economy” under “Professor Jayan Jose Thomas” ABSTRACT This research examines the evolution of India's monetary policy framework between 2019 and 2025, analysing how the Reserve Bank of India has navigated dual mandates of inflation control and financial stability while addressing digitisation challenges. The study finds that while the Flexible Inflation Targeting framework has provided policy stability, its effectiveness in reducing average inflation below pre-implementation levels remains ambiguous. Banking sector health has improved significantly by successfully resolving non-performing as...