What to Read in Indian Express Editorial( Topic and Syllabus wise)

 

Editorial 1 : Economic resilience and growth

Context

India’s economy in 2025 displayed resilience amid global uncertainty, marked by strong growth, low inflation, and effective fiscal and monetary policy interventions despite external shocks such as high US tariffs and volatile capital flows.

Introduction

Macroeconomic stability depends on sustained growth, price stability, and sound policy responses to global and domestic challenges. In 2025, the Indian economy entered a “Goldilocks phase”, combining high growth with unexpectedly low inflation and limited fallout from global trade disruptions. This performance highlights the importance of strong fundamentals and proactive policy management.

Strong Growth with Positive Surprises

• India recorded robust GDP growth of 4% and 8.2%in the first two quarters of the current fiscal year, exceeding expectations.
• Growth forecasts were revised upward by institutions such as CRISIL and the IMF.
• Domestic demand, public investment, and favourable external conditions supported economic momentum.

Benign Inflation and Policy Space

• Retail inflation declined sharply to 3% in October 2025, the lowest since FY 2012.
• Excluding gold, headline inflation entered negative territory.
• Low inflation created space for accommodative monetary policy by the Reserve Bank of India (RBI).

Limited Impact of Global Trade Shocks

• Despite elevated US tariffs and global uncertainty, the impact on global and Indian growth was muted.
• The IMF revised global growth upward to 3.2%, while the WTO increased global trade growth estimates.
• The global AI investment boom boosted exports of high-tech goods and services, benefiting several economies.

Capital Flow Volatility and External Stress

• India experienced volatile capital inflows, rupee depreciation, and negative foreign institutional investment in equities.
• However, unlike the 2013 taper tantrum, India’s macro fundamentals remained strong, with a low current account deficit and controlled fiscal indicators.
• The stress was concentrated on the capital account rather than structural weaknesses.

Role of Fiscal Policy in Supporting Growth

• Government capital expenditure was front-loaded to stimulate economic activity.
• GST rate rationalisation and income tax reductions supported consumption.
• Direct Benefit Transfers, especially to women, boosted household demand and social welfare.

Monetary Policy Support by the RBI

• The RBI reduced the repo rate by 125 basis pointsduring 2025.
• A 100-basis-point cut in CRR, along with regulatory easing and open market operations, improved liquidity and credit transmission.
• These measures helped stabilise bond markets and support bank lending.

Emerging Signs of Private Investment Revival

• There are early indications of a recovery in private corporate capital expenditure.
• Production-Linked Incentive (PLI) schemes and emerging sectors are expected to account for a larger share of future investment.
• Data centres, cloud infrastructure, and artificial intelligence are becoming new drivers of growth.

Conclusion

India’s economic performance in 2025 reflects resilience built on strong fundamentals, timely fiscal support, and accommodative monetary policy. While challenges remain in the form of capital flow volatility and fiscal constraints, ongoing reforms, private investment revival, and improving global conditions offer a positive outlook. Sustained growth will depend on continued macroeconomic discipline and structural reforms.

 

Editorial 2 : Judicial overreach limits

Context

The Delhi High Court’s intervention in a Public Interest Litigation seeking reduction of GST on air purifiers has revived the debate on judicial overreach, separation of powers, and the constitutional role of the GST Council in fiscal decision-making.

Introduction

India’s constitutional framework is based on the separation of powers among the legislature, executive, and judiciary. While courts play a crucial role in protecting fundamental rights and enforcing environmental standards, intervention in fiscal policy decisions risks disturbing this balance. The recent judicial suggestion to reduce GST on air purifiers highlights the limits of judicial activism in economic governance.

Judicial Activism and Constitutional Boundaries

• Courts have, at times, stepped in to correct executive inaction, especially in matters of public interest.
• However, judicial intervention in policy domains reserved for elected bodies raises concerns of overreach.
• Fiscal decisions, particularly taxation, require legislative deliberation and consensus.

GST Council and Federal Decision-Making

• GST rates are determined by the GST Council, a constitutional body under Article 279A.
• The Council comprises representatives of the Centre and States and functions on a three-fourths majority.
• Neither the judiciary nor a single government authority can unilaterally alter GST rates.

Air Pollution as a Public Health Emergency

• Air pollution in India poses serious risks to public health and quality of life.
• Courts have historically played a key role in pushing environmental reforms, including air quality regulation.
• Judicial monitoring and enforcement of environmental laws fall well within the court’s constitutional mandate.

Limits of Judicial Role in Policy Prescription

• While lowering GST on air purifiers may improve affordability, it is a policy choice, not a judicial function.
• Reducing taxes alone shifts responsibility to individuals rather than addressing structural causes of pollution.
• Long-term solutions require coordinated action on emissions, urban planning, energy policy, and transport reforms.

Need for Comprehensive and Institutional Response

• Tackling air pollution demands sustained executive action and legislative policy-making.
• The judiciary’s role lies in ensuring accountability, compliance with environmental laws, and protection of rights.
• Revisiting broader environmental cases, such as those concerning the Aravalli region, reflects constructive judicial engagement.

Conclusion

The judiciary remains central to enforcing environmental protection and safeguarding public health. However, constitutional discipline requires that fiscal decisions, including GST rates, remain within the domain of the GST Council and elected governments. Effective governance depends on respecting institutional roles while pursuing long-term, structural solutions to air pollution.