29 May 2025 : Indian Express Editorial Analysis
1. Venturing Away
(Source: Editorial Page, The Indian Express)
| Topic: GS3 (Economic Development, Investment) |
| Context |
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FDI Trends
- Net FDI fell from $101B to just $353M.
- Indian firms increased outward FDI while foreign firms withdrew.
Concerns Raised
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Low confidence in Indian domestic investment climate.
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Structural reforms like FTAs (Free Trade Agreements) needed.
Finance Ministry’s Review
- Highlighted risk-return tradeoffs elsewhere as a possible reason.
- Advocated better policy environment to attract investors.
Way Forward –
- To restore investor confidence, India must speed up FTA negotiations, simplify tax structures, and ensure regulatory predictability.
| Practice Question:
“Declining FDI inflows reflect deeper structural concerns in India’s investment climate.” Examine. (15 marks, 250 words) |
Read Detailed Report Here: Venturing Away- A Detailed Analysis
2. A Vicious Loop
(Source: Editorial Page, The Indian Express)
| Topic: GS2 (International Relations, Multilateralism), GS3 (Economy) |
| Context |
|
Aid Dependency:
- Multilateral lenders like IMF, World Bank continue lending despite poor reforms.
- High military spending and religious
Critique of Global Finance
- Institutions must evaluate actual impact of loans on social development.
- Aid often ends up funding elites or defense rather than the poor.
Conclusion/Way Forward:
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Multilateral agencies need to apply stricter conditionalities and performance reviews to ensure aid fosters genuine reform.
| Practice Question: “Financial aid without accountability creates a cycle of dependency.” Critically evaluate in the context of Pakistan. (10 marks, 150 words) |
Read Detailed Report Here: A Vicious Loop- Detailed Analysis
Read more – 28 May 2025 : Indian Express Editorial Analysis
