Gold Chain

 GEOECONOMICS AND ENERGY Geoeconomics has been shaping global energy supplies from different countries and  sources.Geoeconomics studies the combination of economic and geographic factors impacting international trade, investment and factor mobility.Accordingly government policies are largely guided by geoeconomics  and frequently geopolitics and geoeconomics are used interchangeably.In effect geoeconomics is " the geostrategic use of economic power" .It has been observed that the post cold war resurgence of Geoeconomics has been influenced by largely Washington led  global economic integration, charecterised by neoliberal capitalists conventions that have transformed the foundations of global security, foreign policy and statecraft.In energy sector also  shifting is taking place from traditional fossil fuel exporters to countries supplying renewable energy technologies and  critical material supply chains.Historically energy security were dependent on oil ...

CETA  India- UK Comprehensive Economic and Trade Agreement came into effect from July 15th 2026 making revolutionary change in bilateral trade between two countries.Most  significantly eliminating 99% of  tariff of Indian exports to the United Kingdom. Formalisation of  CETA and the Free Trade Agreement  (FTA)will reach the goal of bilateral trade  beyond US $100 billion by 2030 .Moreover India-UK Vision 2035 require prerequisites like Free Trade Agreement, Bilateral  Investment Treaty,, cooperation in Artificial Intelligence, International Solar Alliance ,Net Zero and Innovation Virtual  Centre. The benefits of the agreement can be classified into four namely 1Market Access  As India secures Zero  duty access  for 99% of it's exports to UK,it covers  nearly 100% trade value.Major beneficiary segments include  textiles, leather, footwear, gems& jewellery, marine and engineering goods etc, along  with concessions...

 RECENT INFLATIONARY TRENDS  Inflation 9refers to a situation where value of money is falling and prices are rising. Based on the rate at which annual inflation rate  is accelerating it is being classified as creeping, walking,  running and galloping inflation. India's Economic Survey 2025-26 highlighted  high disinflationary  trend  with a very low average headline inflation of 1.7% during April  to December 2025.Consumer price Index  recorded for july,September  and October 2025 were 1.55,2.50 and 2.90 respectively. It was largely due to favourable  macro economic fundamentals including moderate inflation,favourable financial sector balance sheets conditions and heathy  fiscal developments supporting  balance between objectives of growth and consolidation..On the otherhand  external sector  remained manageable due to  increasing service sector exports and large Foreign exchange Reserves.. But situation has...

 INDIA AUSTRALIA STRATEGIC PARTNERSHIP  India - Australia bilateral relations have been evolving over the years and bilateral ties reached to a Comprehensive Strategic partnership (CSP) in June 2020 marking Strategic deepening of relations driven by factors including shared democratic values and a vision for a free open and prosperous Indo Pacific. The partnership has further strengthened  rapidly by recent developments including Defence Minister's Dialogue in October 2025 and recent  Declaration on Defence and Security   Cooperation signed in July 2025.The Economic Cooperation and Trade Agreement signed has increasingly expanded our trade and investment horizons. The third India-Australia summit held on 9th July 2026 in Melbourne not only reaffirmed the commitment to strengthening cooperation across India and Australia on defence trade, critical minerals ,clean energy ,education,Emerging technologies and most importantly Indo- Pacific security.  Both ...

 MEANING OF GEOECONOMICS  Geoeconomics refers to the interrelationship  between economics, geography and politics.It uses economic tools like trade policies, investments, and financial  sanctions to achieve geopolitical goals.Geoeconomics uses the analytical framework to assess the strategic and spatial properties of of national economies .Analysts expected that the end of cold war would lead to more peaceful age of international relations when most nations professed to follow agreed rules in a positive-sum game designed to benefit all.But Ironically as things stand today such a vision is under grave threat as Governments increasingly turn to usage of tarrifs, sanctions, and other trade control measures. Moreover across the globe the line between economic and national security is becoming opaque. According to Jean- Marc Natal  raw materials that rule and control of commodities shaped the world economy in the past and could decide it's future. In one  sense ...

INDIA'S EXTERNAL SECTOR  The geo political conflicts and trade disruptions have been impacting much awaited resilience of global economy. Extended supply side pressures have led to persistent increase in commodity prices and consequentlly rising inflationary pressures till early June 2026. In this context World Bank's latest Global Economic Prospects  projected the global growth to slow down to 3.4 %.Expectations varied between major Advanced Economies (AE) and Emerging Markets and developing Economies (EMDES).Such variations are  attributed to volatile capital flows,energy prices and shifting global trade patterns and dynamics. India's external sector is also facing unprecedented problems. In India energy vulnerability is primarily due to heavy import dependence of nearly 85% of India's crude oil requirements making it highly vulnerable to global price fluctuations. Usually rising oil prices  are also followed by geopolitical tensions (as in West Asia) which consequ...

Kerala  Chief  Minister VD Satheesan's maiden budget envisages an ambitious 5 year growth plan, attracting private investment in key sectors with major policy shift from remittances to the investment economy. The state Government is looking beyond traditional diaspora contributions to chart its next phase of economic growth. Eventhough remittances has been supporting the state's  economy for deades  future requires a shift  beyond dependence on remittances towards an investment driven economic model. Budget 2026-27 envisages total Revenue expenditure of ₹205001•67 crores ,Revenue reciepts of ₹169646•37 crores .Other disturbing features are a staggering 77 % of total Revenue expenditure on salaries, pensions and interest payments. The capital expenditure has plummeted to mere 1.3% of Gross State Domestic Product of Kerala one of the lowest in the country. The state's Own Tax Revenue (SOTR) also fell from 6.94% in 2015-16 to 6.41% in 2025-26 against national avera...

 The White Paper on Fiscal strength of Kerala placed in the state legislature on June 4th 2026 prepared by  an expert  team chaired by former cabinet Secretary KM Chandrasekhar  revealed that on the fiscal front Kerala currently faces a large burden of outstanding liabilities of ₹ 5.07 lakh crores estimated to be 35.5%" of Gross State Domestic Product,In contrast to the national all  state average is 29.2% .Most importantly Kerala's  committed expenditure on salaries, wages,and pensions estimated to take a lions share of 77.6% of revenue reciepts in 2025-26 as  against all state's average of 46.4% for the country. Accordingly an estimated 1.3% of GSDP is  only available for essential capital  expenditure. The Paper recommended to Revamp the KIIFBI Act 2016 and suggested to be brought under the Budgetary control of the administrative departments concerned and the Finance Department. The transition of KIIFBI should be restructured The Kerala in...

MONETARY POLICY JUNE 2026:  Monetary policy Committee (MPC) meeting held from June 3rd to June 5 2026  unanimously decided to retain policy rates and  the repo rate unchanged at 5.25 % and continue a neutral policy  stance. Accordingly Cash Reserve ratio ( CRR) remained at 3%,SDF  rate  at 5.00%,MSF rate at 5.50 % ,and bank rate at 5.50%.This decision was taken due to factors like heightened globail uncertainties, particularly the ongoing and uncertain conflict in West  Asia which in turn elevated energy prices and inflicted supply chain disruptions.  In the existing scenario RBI lowered its GDP growth projections for  Fy 2026-27 to 6.6 % from earlier 6.9 % level.Quarterly projections of GDP indicated that during Q1 fall in growth projections would be from 6.8 % to 6.6%, in Q2 from 6.7% to 6.3%, in Q3 from 7% to 6.5% and in Q4 from 7.2 % to 6.8 %.It may be noted here that the Provisional GDP estimates released by the Ministry of Statistics an...

OPEC AND OPEC + The Organisation of Petroleum Exporting Countries (OPEC) an intergovernmental Organisation  established on  14th September 1960 in Bhagdhad with initial 5 members  namely Iran, Iraq, Kuwait, Saudi Arabia and Venezuela were instrumental in making wide range  of global impacts in later years  due to heavy dependence of other country's on imports from OPEC members- petroleum products for energy consumption. At present with 11 member nations OPEC is estimated  to control 79.5% of the world's proven oil reserves that are located within OPEC members wherein Middle East alone accounts for 67.2 % of OPEC s total reserves. It may be recalled here that first time forging of oi weapon and exercising of OPEC's cartel's monopoly power were exercised in October 1973 when oil prices were shot up several fold.Obviously non oil developing countries were worst affected.On the other hand advanced economies could neutralized the negative impact  by enhanci...

 INTELLECTUAL PROPERTY  World Intellectual Property Organisation (WIPO) celebrate Intellectual Property Day every year on 26th April since 2000 to create awareness about how  patents, copyrights trademarks and designs impact our day today life.Intellectual property is integral to creation of human mind  which could be incorporated as creative or inventive work like-inventions ,artistic works,books,music, films, designs etc. According to Albert Einstein the creation of human mind is interlinked with power of imagination and the ability to stand on existing foundation of accepted knowledge and see beyond to the next frontier of discovery. In effect that is the source of personal cultural and economic advancement. The idea of Intellectual property originated from the realization that let individuals reap exclusive fruits of human intellect from their knowledge, creativity, expertise, skills, scientific and traditional resources research and work experience. In other wor...

Unfolding of the  Israel-US - Iran  war crisis already started impinging both the global economy and Indian economy particularly in energy, threatening energy security, disrupting trade routes and  widening trade deficit and current account deficit. Energy prices and inflation rates are positively correlated.In India rise in fuel prices, LPG prices both domestic and commercial along with shortage and consequent elevation of price of fertilizers  which is essential ingredients for  farm input etc are bound to make not only higher inflationary trends but also a decline in agricultural output possibly in forthcoming Khariff season.Apart from agriculture,  energy crisis is bound affect a large number of industries and products like textiles, paints, cement, tyres, fertilizers and chemicals etc. Global trade and movements of goods across Red Sea and Suez Canal are being disrupted, necessitating  rerouting via the Cape of Good Hope resulting in 15-20 days ad...

 POLICY RATES Monetary policy Committee (MPC) meeting held in April 2026 decided to retain policy rates maintaining the  neutral policy stance due to heightened geopohaslitical uncertainties in West Asia. According to RBI Governor despite the impact of unprecedented geopolitical disturbances in Middle East and consequent supply chain disruptions the Indian economy remained on a stronger footing policy in comparison with earlier crisis episodes. Accordingly MPC decided to retain rates at the existing rates as -Repo rate at 5.25 ,Standing Deposit facility (SDF) rate 5.00%,Bank Rate and Marginal Standing Facility (MSF) rate both at 5.50%  and Cash Reserve ratio (CRR)  at 3%.RBIs  GDP growth estimates indicated 6.9 % for the financial year 2026-27where in Q1 6.8%, Q2 6.7%,Q3  7.0% and Q4 7.2 % were estimated quarterly projections.Inflation projections indicated that for Fy 2026-27 CPI Inflation is estimated  at 4.6% , likely  to increase to 5.2% in Q3...