TLDR;
This video from SPM IAS Academy provides an analysis of newspaper articles from October 18, 2025, focusing on topics relevant to the Indian economy and current events. It covers the rising gold prices, trade agreements between India and the Mercosur Group, the State Mining Readiness Index, and the Henley Passport Index.
- Rising gold prices are attributed to global economic uncertainty, the nature of gold as a Veblen good, and the weakening rupee.
- India and Brazil have agreed to expand trade agreements between India and Merkuser Group.
- Assam's performance in the State Mining Readiness Index is highlighted.
- India's ranking in the Henley Passport Index has dropped to 85th.
Rising Gold Prices [0:20]
Gold prices are continuously increasing, with 10 grams recently selling close to ₹1.3 lakh, about 50% higher than the previous year. This increase is partly due to gold items like jewelry being considered Veblen goods, where demand rises with price due to their status symbol association. Global economic uncertainty, including conflicts and trade wars, also drives investors to gold as a safe investment. Low bank interest rates further push people towards gold for better returns.
Impact of Rising Gold Prices [10:40]
Rising gold prices can harm the economy because India imports 90% of its gold, increasing the current account deficit. While households benefit from gold's increasing value, it's non-productive for the economy. Investing in banks or company shares would mobilize capital, fostering economic growth and employment. Indian households own about 34,600 tonnes of gold, which is close to 90% of India's GDP.
India and Brazil Expand Trade Agreements [14:09]
India and Brazil have agreed to expand trade agreements between India and Merkuser Group. Economic integration occurs when countries sign agreements to promote trade. These agreements range from Preferential Trade Agreements (PTA), which identify specific items for liberalized trade, to Free Trade Agreements (FTA), which liberalize trade on most items except those on a negative list. Higher levels include Customs Unions, Common Markets, and Economic Unions, each involving greater integration of economies.
Levels of Economic Integration [14:30]
The lowest level of economic integration is the Preferential Trade Agreement (PTA), where countries trade with each other in a liberalized manner on some items. The Free Trade Agreement (FTA) is a bigger version of the PTA. Then there is a Customs Union in which countries have already signed a free trade agreement among themselves. When countries have agreed for customs union, they can go for further higher level of integration called common market. Economic Union is where countries agree on a common market and also adopt same currency shared currency.
Merkosur Group and India's Trade [22:22]
The Mercosur Group is a South American economic organization with original members Argentina, Brazil, Paraguay, and Uruguay. India had a preferential trade agreement with Mercosur, which is now being expanded to a free trade agreement to boost trade between the two sides.
State Mining Readiness Index [24:00]
The Ministry of Mines releases the State Mining Readiness Index, categorizing states based on their mineral endowment. Assam is in Category B and is among the top three performers in that category.
Henley Passport Index [25:15]
The Henley Passport Index ranks countries based on the freedom of movement for their citizens, reflecting the number of countries they can access visa-free. Singapore is currently ranked first. India's rank has dropped to 85th, with Indian passport holders having visa-free access to 57 destinations.