September 25, 2023 MONDAY ISSUE- 310

THE ECONOMICS HUB

ECONOMIC LEXICON

Hyper Inflation
When inflation gets out of control—as happened,
for example, in Germany in 1923. A loaf of bread costed
200bn marks in November 1923 and workers were paid
twice a day because their wages fell in value during the
day. Such high rates of inflation are fueled by a rapid
expansion of the money supply.
 New Segment

Podcast of the week

From The Chief
Editor's List

The Sound Of Economics

The Sound of Economics is Bruegel's podcast series that explores

Europe’s big economic policy debates. Each episode gathers
prominent experts and Bruegel researchers to discuss the
importance of the issues covered and explores some of the work
that Bruegel researchers have done in the area. Bruegel is the
European think tank that specialises in economics.
Q Q
U U
I I
C C
K K

G G
L L
A A
N N
C C
E E
 India to enter JP Morgan EM Bond index,set for 20
billion inflow

The bond market is set to become more attractive for FPIs after
JP Morgan decided to include government papers issued by the
Reserve Bank of India (RBI) under the fully accessible route in its
widely tracked emerging market government bond index (GBI-
EM). The process will start in June next year.

India will be included in the GBI-EM Global index suite and all
relevant derivative benchmarks (including custom indices),
starting June 28, 2024,” JP Morgan said following a 2023 index
governance review.

With assets under management of $236 billion tracking the

index, inflows of $23.6 billion are estimated during this period. A
Nomura note said Thailand could bear the brunt of the relocation
of resources to India with outflows amounting to $3.6 billion.

The inclusion in the global bond index can lead to lower

borrowing costs for both the government and private-sector
borrowers. The process of foreign investors converting their
currencies into rupees further boosts the demand for the Indian
currency, helping stabilise its value.
 Adani and TotalEnergies to form 50:50 joint
venture

Adani Green Energy and TotalEnergies SE, a French multinational

energy company are to form a joint venture. The latter has planned
to put up $300 million for the same.

On Tuesday, both companies announced the decision for the deal

mentioned.

Currently, TotalEnergies owns 20% of Adani Green.

Adani Green will contribute assets to the joint venture, it said in a

statement, adding that the JV will help in achieving the company’s
target of having 45 GW of renewable energy capacity by 2030.
 Cartoon Today

The cartoon represents the tightrope walk women undertook for

the Women's Reservation Bill that was recently passed. The Bill
also represents the new transition from the old to the new
parliament. It had been pending for 13 years. India ranks 141 in the
world on women’s share in national legislature.
 ADB moderates India GDP growth hopes this
year to 6.3%

Cites weak exports and erratic rains: expects rising

private investment and industrial output to help the
economy grow 6.7% next year.

The Asian Development Bank (ADB) on September 20

pared its growth forecast for India’s economy to 6.3% for
this year, from 6.4% estimated earlier, citing the impact
of falling exports and erratic rainfall patterns that
could hit farm output.

Noting that the economy displayed robust growth of

7.8% in the first quarter of this fiscal year despite global
uncertainties, the Bank expects growth to be propelled
by “robust domestic consumption as consumer
confidence improves, and by investment including large
increases” in government capital expenditure through
the rest of this year and next year.
 Editors
Shorya Jain Kavya Bansal
XII-C XII-A
(Chief Editor) (Vice Chief Editor)
Shambhavi Varma Angelina Tamang
X-D X-D
(Editor) (Editor)

Columnists
Prakriti Ghosh Shreyas Jain
XI-A XI-A

Janvi Singh Paridhi Gupta

XI-B X-C

Nalin Khanduja Pranvi Aggarwal

XI A X-D