The Reserve Bank of India (RBI) is not cutting interest rates despite the retail inflation rate being within the target range of 2% to 6% because of several factors:

1 Sticky Inflation: Despite keeping the repo rate consistently high, retail inflation has not dropped to touch the 4% mark since January 2021.

2 Economic Growth: The RBI has upped the GDP forecast for the current financial year from 7% to 7.2%, indicating that the current growth momentum is expected to continue.

3 Global Economic Conditions:. The US Federal Reserve is expected to deliver its first rate cut in June, but the risks are growing for the cut to happen later in the year. This may prompt the RBI to hold off on significant rate cuts until at least July.

4 Monsoon Forecast and Agricultural Prospects: A normal monsoon season, as predicted by Skymet, suggests that agricultural production could remain stable, controlling food inflation and supporting rural income. This is crucial for the RBI, as it directly impacts inflation and growth rates.

5 Crude Oil Prices: Elevated crude oil prices, exacerbated by geopolitical tensions, present an external challenge for India's economy. The RBI will need to account for the impact of higher energy costs on inflation and the current account deficit.

The Reserve Bank of India (RBI) has outlined aspirational goals for its centenary year, focusing on enhancing India's global footprint. Key goals include:

• Capital Account Liberalisation: To allow free flow of capital to and from India, enabling the rupee to be used for international transactions.

• Globalisation of Rupee: To make the rupee a widely accepted currency for international transactions, enhancing accessibility of rupee accounts for non-residents.

• Digital Payments: To deepen and universalise digital payment systems domestically and globally, including internationalisation of UPI, RTGS, and NEFT.

• Financial Sector Reforms: To expand banking domestically and position Indian banks among the top 100 global banks, supporting the International Financial Services Centres Authority (IFSCA) to make GIFT City a leading international financial centre.

• Monetary Policy Framework: To review the framework to balance price stability and economic growth from an Emerging Market Economy (EME) perspective, refining monetary policy communication and addressing spillovers to EMEs.

• Climate Risk Management: To guide regulated entities on stress testing their asset portfolios for climate change and strengthen payment systems' resilience to climate risks.

Capital account convertibility means the freedom to convert rupee into any foreign currency and foreign currency back into rupee for capital account transactions.

India has not yet opened up its capital account fully which will allow free flow of capital to the country and outside. The rupee was made full float in the trade account during the 1991 reforms initiated by the then government.

The Tarapore committee had listed several preconditions such as fiscal consolidation, inflation control, low level of non-performing assets, low current account deficit and strengthening of financial markets for achieving capital account liberalisation.

The RBI working group, headed by RBI Executive Director Radha Shyam Ratho, had recently recommended a slew of short to long term measures to accelerate the pace of internationalisation of the rupee.

#ECONOMY

UPSC-CDS II-GK-2020

#HISTORY

The Bengal School of Art

The Bengal School of Art was a new form of painting that depicted Indian subjects and was executed in an Indian style.

It was an art movement that emerged in Calcutta and marked a significant departure from traditional European styles.

It was associated with the Swadeshi movement and was spearheaded by Abanindranath Tagore.



Indian Society of Oriental Art (1907)

The Indian Society of Oriental Art was an art society founded by brothers Gaganendranath Tagore and Abanindranath Tagore in Calcutta in 1907. It was sponsored by a group of Europeans in Calcutta.

It organised art exhibitions of the Bengal School of Art, which showcased the latest works of artists in the new Indian painting movement initiated by Abanindranath Tagore. It taught students and published high-quality reproductions and illustrated journals.



Kala Bhavana (1919)

India’s first nationalist art school, Kala Bhavana, was set up in 1919 as part of the newly established Visva-Bharati University in Shantiniketan.

It carried the vision of the Bengal School but also followed its own path in creating art meaningful for Indians.



Abanindranath Tagore (1871–1951)

Abanindranath Tagore was seen as a father figure of nationalist and modernism of art in India. He revived certain aspects of Indian and oriental traditions of paintings in terms of themes, style and techniques, and invented the wash painting technique.

#HISTORY

UPSC CDS II 2015 (Q. No. 100)
UPSC CDS I 2022 (Q. No. 68)

#HISTORY

Important Books and Authors


The Swadeshi Movement in Bengal, 1903-1908: Sumit Sarkar

Event, Metaphor, Memory-Chauri Chaura, 1922-1992: Shahid Amin

A Rule of Property for Bengal: Ranajit Guha

The Rise and Growth of Economic Nationalism in India: Bipan Chandra

The Other Side of Silence: Urvashi Butalia

Bandi Jiwan: Sachindranath Sanyal

The Philosophy of the Bomb: Bhagwati Charan Vohra

Indian Unrest: Valentine Chirol

Desher Katha: Sakharam Ganesh Deuskar(BPSC-PYQ)

History of British India: James Mill

The Indian Struggle 1920-1942: Subhas Chandra Bose

Plagues and Peoples: William H. McNeill

Stripurushtulna (A Comparison between Women and Men): Tarabai Shinde

#HISTORY
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