RBI’s ₹1.5 trillion booster package: A critical analysis on the impact over Indian Economy
On 28th of January, 2025 the prime-time business column of the Business Standard read as follows- “RBI to inject 1.5 trillion dollars into the economy. Markets rebound and the road ahead”. As students of economics, finance and enthusiasts of international relations; we found this as an opportunity to apply the theoretical knowledge acquired so far and apply them in this situation. Through this article, we aim to present a detailed and critical analysis of this phenomenon of liquidity injection and its impact on the world's fastest growing economy - India. RBI’s Liquidity Injection Phenomenon - The 4 W's Using the 4 W's framework we can gain an in-depth understanding on the what, when, why and how of this move as under: The WHATs- The Reserve Bank of India (RBI) has announced special measures to improve liquidity conditions in the banking system.It is expected that ₹1.5 trillion (approx. $18 bn) would be injected in the system. This come...