Topic – India’s retail inflation trends
Q1. What lessons can be drawn from India’s recent retail inflation trends for the Reserve Bank of India’s monetary policy framework? Discuss how persistently low inflation affects growth dynamics, and evaluate the need for recalibrating the RBI’s forecasting and policy approach. (15 marks, 250 words)
| Introduction | India’s retail inflation touched a 99-month low of 1.54% in September 2025, marking a rare phase of sustained disinflation. The average inflation rate for the first half of FY 2025–26 stood at 2.2%, well below the Reserve Bank of India’s (RBI) medium-term target of 4% and just within the lower tolerance limit of 2–6%. While falling prices may seem beneficial for consumers, the trend carries important macroeconomic and policy implications, particularly concerning monetary stimulus, demand recovery, and forecasting accuracy. |
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| Conclusion | India’s current low inflation phase reveals that price stability without demand growth is not sustainable for a developing economy. The Reserve Bank must refine its forecasting tools and adopt a more growth-supportive monetary stance, complementing government efforts to raise real incomes and investments. The key lesson is that monetary policy must remain flexible, evidence-driven, and attuned to both inflationary and disinflationary risks, ensuring balanced and inclusive economic progress. |
| UPSC Syllabus | India’s Retail inflation and its implications |
| Why was this question asked? | Q. Do you agree with the view that steady GDP growth and low inflation have left the Indian economy in good shape? Give reasons in support of your arguments. (2019) |
| Introduction | India’s retail inflation touched a 99-month low of 1.54% in September 2025, marking a rare phase of sustained disinflation. The average inflation rate for the first half of FY 2025–26 stood at 2.2%, well below the Reserve Bank of India’s (RBI) medium-term target of 4% and just within the lower tolerance limit of 2–6%. While falling prices may seem beneficial for consumers, the trend carries important macroeconomic and policy implications, particularly concerning monetary stimulus, demand recovery, and forecasting accuracy. |
| Body | Understanding Inflation and the Current Context
Implications of Persistently Low Inflation
Monetary Policy Challenges for the RBI
Forecasting Inaccuracy and Its Consequences
The Growth-Inflation Trade-off and Policy Coordination
Way Forward: Recalibrating the RBI’s Approach
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| Conclusion | India’s current low inflation phase reveals that price stability without demand growth is not sustainable for a developing economy. The Reserve Bank must refine its forecasting tools and adopt a more growth-supportive monetary stance, complementing government efforts to raise real incomes and investments. The key lesson is that monetary policy must remain flexible, evidence-driven, and attuned to both inflationary and disinflationary risks, ensuring balanced and inclusive economic progress. |
Topic – Gaganyaan’s vital Crew Escape System (CES)
Q 2. How does Gaganyaan’s vital Crew Escape System (CES) work? Discuss its significance for crew safety, its types, and the steps taken by ISRO to validate the system. (15 marks, 250 words)
| Introduction | India’s Gaganyaan Mission represents a milestone in its journey toward human spaceflight capability. The mission aims to send a three-member Indian crew into Low Earth Orbit (LEO) at about 400 km altitude and bring them back safely using the human-rated LVM3 (HLVM3) launch vehicle. In such missions, the lives of astronauts outweigh every other consideration. To ensure this, the Crew Escape System (CES) — an advanced, autonomous safety mechanism — has been integrated into the launch vehicle. It is designed to rescue the crew in case of a critical failure during the most dangerous phase of flight: launch and atmospheric ascent. |
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| Conclusion | The Crew Escape System stands as the guardian angel of India’s astronauts, embodying ISRO’s philosophy that “crew safety precedes mission success.”
By integrating real-time health monitoring, high-thrust propulsion, and rigorous testing, the CES ensures that any emergency during Gaganyaan’s ascent will trigger an immediate, autonomous rescue. Beyond its engineering brilliance, the CES reflects India’s arrival as a mature spacefaring nation — capable not only of reaching orbit but of bringing every astronaut home safely, laying the foundation for the next era of Indian human space exploration. |
| UPSC Syllabus | India’s Space Programme |
| Why was this question asked? | Q. India has achieved remarkable successes in unmanned space missions including the Chandrayaan and Mars Orbitter Mission, but has not ventured into manned space mission, both in terms of technology and logistics? Explain critically (2017) |
| Introduction | India’s Gaganyaan Mission represents a milestone in its journey toward human spaceflight capability. The mission aims to send a three-member Indian crew into Low Earth Orbit (LEO) at about 400 km altitude and bring them back safely using the human-rated LVM3 (HLVM3) launch vehicle.
In such missions, the lives of astronauts outweigh every other consideration. To ensure this, the Crew Escape System (CES) — an advanced, autonomous safety mechanism — has been integrated into the launch vehicle. It is designed to rescue the crew in case of a critical failure during the most dangerous phase of flight: launch and atmospheric ascent. |
| Body | Rationale and Necessity of the Crew Escape System
Design and Components of the CES
Operational Sequence During a Contingency
Types of Crew Escape Systems: Puller vs Pusher
Uses liquid-fuel thrusters integrated into the capsule body to push it away.
ISRO’s Testing and Validation Efforts
Broader Significance for India’s Space Programme
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| Conclusion | The Crew Escape System stands as the guardian angel of India’s astronauts, embodying ISRO’s philosophy that “crew safety precedes mission success.”
By integrating real-time health monitoring, high-thrust propulsion, and rigorous testing, the CES ensures that any emergency during Gaganyaan’s ascent will trigger an immediate, autonomous rescue. Beyond its engineering brilliance, the CES reflects India’s arrival as a mature spacefaring nation — capable not only of reaching orbit but of bringing every astronaut home safely, laying the foundation for the next era of Indian human space exploration. |