07 June 2025 : Indian Express Editorial Analysis

1. In Pursuit of Growth
(Source: Editorial Page, The Indian Express)

Topic: GS3: Indian Economy – Monetary Policy, Inflation, Growth Projections

Context

The RBI’s Monetary Policy Committee unexpectedly reduced the repo rate by 30 basis points and the Cash Reserve Ratio (CRR) by 100 basis points, aiming to stimulate growth amid subdued inflation. However, it also shifted its policy stance from “accommodative” to “neutral”, creating mixed signals.

Background:

• Repo rate now stands at 5.5%, down by 100 basis points since February 2025.

• CRR cut to inject ₹2.5 lakh crore liquidity by December 2025.

• RBI’s inflation projection: 3.7% average for FY26.

• Growth target retained at 6.5%, but geopolitical and climate risks flagged.

 

Growth-Oriented Monetary Measures:

• Rate cuts aim to push domestic demand, consumption, and investment.

• Lower inflation, favorable monsoon, and falling crude oil prices justify the easing.

CRR Cut and Liquidity Boost:

• Injects liquidity into the banking system, easing credit conditions.

• Aims to facilitate transmission of reduced rates to real economy.

Policy Stance Shift – Neutral Signal:

• Moving to “neutral” suggests a possible pause in further rate cuts.

• Confusion arises as the RBI signals support for growth but also caution.

Uncertainties Ahead:

• Risks include geopolitical tensions, global trade disruption, and erratic monsoon.

• RBI remains cautious about inflation and global headwinds.

Way Foward:

• Growth-centric monetary tools must be complemented by fiscal prudence and structural reforms.

• Close coordination between RBI and government needed for managing uncertainty

Practice Question: With inflation easing, how far can monetary policy support India’s growth recovery in 2025–26? Discuss with recent RBI measures. (GS-2, 15 marks, 250 words)

Also Read: The Hindu Editorial Analysis- 07 June 2025

2. More Than States

(Source: Editorial Page, The Indian Express)

Topic: GS1: Indian Society (Census); GS2: Governance and Federalism

Context

The editorial reflects on the challenges and implications of India’s delayed decadal Census, now scheduled to be completed by March 2027. It discusses the political centralisation of the process and growing calls for state-level involvement to ensure real-time, locally relevant data for governance.

Background:

• India’s tiger population rose to 3,682 in 2023, but states like Odisha, Jharkhand, Chhattisgarh, and parts of Telangana show declining tiger numbers. A recent NTCA-WII report attributes this to depleted prey species like sambhar and wild boar due to poaching and poverty-driven bushmeat consumption.

Impact of Census Delay:

• India’s last census was in 2011; the 2021 edition was postponed due to COVID and has not resumed since.

• Welfare planning, urbanisation policy, and electoral delimitation suffer from outdated demographic data.

State Demands for Autonomy:

• States like Tamil Nadu, Bihar, and Andhra Pradesh are demanding decentralised population surveys.

• The editorial argues this reflects a need to rethink Centre–State power-sharing in data collection.

Governance and Data Gaps:

• Without updated data, economic planning, welfare targeting, and job schemes are misaligned.

• The Census delay has hindered critical planning for housing, education, and healthcare in growing urban centres.

Way Forward:

• The Centre should involve states in population enumeration using shared platforms.

• A decentralised, real-time demographic data system could complement the formal Census process and enhance cooperative federalism.

Practice Question: Should India decentralise its population data collection by empowering states? Analyse in the context of governance and federalism. (GS2, 15 marks, 250 words)

Read more – 06 June 2025 : Indian Express Editorial Analysis