Infotainment Kaleidoscope

Crude oil is often referred to as the lifeblood of modern economies, and its price fluctuations can have profound effects on a country's economic stability. For a country like India, which is heavily reliant on oil imports, changes in crude oil prices can significantly impact various aspects of the economy, including inflation, stock markets, and consumer behavior. The Role of Crude Oil in India's Economy India is one of the largest importers of crude oil, meeting over 80% of its oil requirements through imports [1] . This heavy reliance on imported oil makes the Indian economy particularly sensitive to changes in global oil prices. The price of crude oil affects not only the cost of fuel but also has a cascading effect on various sectors of the economy. Impact on Inflation 1. Direct Impact on Fuel Prices When crude oil prices rise, the immediate effect is seen in the prices of petrol and diesel. Higher fuel prices increase transportation costs, which in turn raises the cost of...

  The Union Budget 2025-26, presented by Finance Minister Nirmala Sitharaman, has introduced significant changes to the tax exemption limits, aiming to provide relief to taxpayers and stimulate economic growth. However, these changes also raise important questions about their potential impact on inflation. In this article, we will explore the relationship between increased tax exemption limits and inflation, drawing on historical data and examining consumer behavior. Historical Context: Tax Exemption Limits and Inflation Over the years, the Indian government has periodically adjusted tax exemption limits to provide relief to taxpayers. For instance, in the Union Budget 2023, the basic exemption limit was increased from ₹2.5 lakh to ₹3 lakh under the new tax regime. Similarly, in the Union Budget 2014, the exemption limit was raised from ₹2 lakh to ₹2.5 lakh under the old tax regime. These changes have generally been aimed at increasing disposable income for taxpayers, thereby boost...