Daily Current Affairs – 28 February 2026

English | Page 5 | Indian Economy – Analytical Overview

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💰 1. Capital Expenditure and Growth Strategy

The Government has increased capital expenditure to boost infrastructure, manufacturing and long-term economic growth. Capital expenditure leads to asset creation and generates multiplier effects in the economy.

Key Concepts:

• Capital Expenditure vs Revenue Expenditure
• Multiplier Effect
• Public Investment-led Growth

Mains Angle: Evaluate the role of government capital expenditure in reviving private investment.

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 2. Financial Inclusion and Digital Economy

India’s digital financial ecosystem has expanded rapidly through digital payments, banking penetration and Direct Benefit Transfer (DBT).

Exam Link:

• Jan Dhan Yojana
• UPI ecosystem
• Digital Public Infrastructure (DPI)

Importance: Reduces leakages and enhances transparency.

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📊 3. Inflation and Monetary-Fiscal Coordination

Managing inflation while sustaining growth requires coordination between fiscal policy (Government) and monetary policy (RBI).

Prelims Focus:

• Repo Rate
• CPI vs WPI

Mains Focus: Trade-off between inflation control and economic growth.

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 4. India in the Global Economic Context

Despite global uncertainties, India remains one of the fastest-growing major economies. Strong domestic demand and infrastructure investment are key drivers.

Analytical Perspective:

• Investment-led growth model
• Export diversification
• Supply chain resilience

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 Mains Practice Question

“Discuss the role of capital expenditure and digital financial infrastructure in accelerating India’s economic growth.” (250 words)

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📘 Concept Clarity + Economic Analysis = Strong GS Paper 3 Answers
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