Gold Chain

NET FOREIGN DIRECT  INVESTMENT  Theoretically  Foreign Direct Investment (FDI) is Investment made to acquire a lasting interest in or effective control of an enterprise operating outside of the economy of the investor. On the otherhand FDI net inflows are the value of inward direct Investment made by nonresident  investors in the reporting economy ,including reinvested earnings and intra  company loans,net of repatriation of capital and repayment of loans. FDI net out flows are the value of outward Direct Investment made by residents of the reporting economy to external economies, including reinvested earnings  and intra company loans,net of reciepts from repatriation of capital and repayment of loans.According to recent RBI data net Foreign Direct Investment flows to India has drastically declined by 159% in August 2025. On the contrary It may be recalled that during April- August 2025 net Foreign Direct Investment shot up by 121% compared to the same peri...

BACKGROUND OF OCTOBER 2025 OUTLOOK According to IMF's World Economic Outlook October 2025 in April when US announced sizable tariff against most of it's trading partners, given the complexity and fluidity of the situation April 2025 World Economic Outlook offered a range of downward  revision of estimates in global growth from modest to significant depending on the impact of severity of trade shock. After six months the  negative impact of  global economic growth became modest due to the agility of private sector which front loaded imports and also reorganized supply chains to redirect trade flows. The global economy started showing  moderate slow down in the first half of  2025 and further marked robust activity. Inflation In Asian economies was subdued while it remained steady in USA. This apparent resilience is largely applicable to temporary factors like front loading of trade and investment and inventory management strategies. The global growth is projected...

 Since 1969 Nobel Prize inEconomic Sciences has honoured many distinguished economists( Ragnar  Frisch,Tinbergen ,P A Samuelson, Paul Krugmen ,AK.Sen, Joseph E Stiglitz, Abhljit Sen,Ben Bernanke etc) who tranformed  our understanding of economies,markets and human behaviour- exploring poverty alleviation,financial crises,behavioural economics or climate change etc  where these laureates have made a significant difference.Over the years the Prize has recognized the visionaries who turned abstract economic theories into real world applications from evolving tools to measure national growth and designing innovative mechanisms for market effficicency etc.The 2025 Nobel Prize in Economic Sciences was awarded to Joel Mokyr ,Philippe Aghion,and Peter Howitt for their work analyzing innovation- driven Economic growth. In this context they have attempted to answer fundamental questions like-Why do some economies keep growing for a long time while others stagnate?How do new in...

 BACKGROUND After the Declaration of Human Rights in 1948 discussions further focused on questions of democracy, development. the cold war,dichotomy between individual liberty market economy and Centralised planning.Later  Developments like disappearance of cold war emergence of human rights organizations like Amnesty International and Human Rights Watch coupled with onslaught of liberalisation etc. further led to increased attention on human rights violations  both at  civil and political level resulting in increasing violations on social ,cultural and economic rights as well as The development of human rights organizations along with both national and multilateral development agencies and organizations enabled the stake holders to assert their duties, responsibilities, transparency, trust and accountability that ultimately evolved the development of  the rights based approach. Accordingly the United Nations 1993 Vienna Conference developed the Vienna Declarati...

 MONETARY POLICY  Monetary policy primarily deals with the tools and techniques of controlling the demand for and supply of money so as to achieve desired results in the economy. Policy makers utilises mainly both interest rates and money supply adjustment through the Central Bank (RBI in India) to influence economic activities like economic growth and stability in prices and and balance of Payments. The tools of monetary policy and their utilisation  may vary from Central Bank to Central bank depending on country's stage of development, institutional structure, tradition and political system. Major tools of monetary policy utilised by Reserve Bank of India  can be divided into six namely 1.Open Market operations (Buying and selling of Government securities by RBI to influence the amount of money circulating in the economy)2.Discount Rate or Bank Rate(The interest rate at which RBI lends money to commercial banks)3. Reserve Requirements- percentage of bank deposits t...

 FDI FLOWS:  GLOBAL SCENARIO  Foreign Direct Investment (FDI) refers to investment made by a company or individual in another  country to meet business interest by controlling both ownership and operations. According to IMF FDI refers to an investment made to acquire long term interest in enterprises  operating outside of the economy of the investor..  Important components of FDI include equity capital,,reinvested earnings  and intra company loans. FDI investment is mainly classified into two 1.Greenfield investment FDI   which create new production capacity, employment,  transfer of technology etc as against 2.Brown field investments that allows equities mergers and acquisitions of the already existing companies.UNCTAD's World Investment Report 2025 observed that " The global economy continues to grapple with a complex set of challenges: mounting debt,persistent under performance in GDP growth geopolitical tensions and structural shift ...

 The Shanghai Cooperation Organisation (SCO) originated as the security mechanism established in 1996  comprising of five countries-China, Russia, Kazakhstan Kyrgyzstan and Tajikistan  When Uzbekistan joined the group in June 2001it became  a EuroAsian political economic and security alliance SCO. After signing of  SCO charter in 2002 countries like India, Pakistan and Iran were granted observer status in 2005 and in 2017 countries like India and Pakistan officially joined SCOas  full members. By 2007 the SCO  had initiated more than 20 large scale projects comprising of energy, telecommunications, transportation etc.in addition to regular meetings on defense, security, military, economic ,cultural banking and external affairs. It may be noted here that in November 2006 at the SCO meeting Russian Foreign Ministry took initiatives for setting up a SCO "Energy Club ".Infact the SCO developed rapidly and established a number of permanensset bodies as well...