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 Business, Economy & Banking Current Affairs [PDF E-Book / 1 Year]

Contents
......................... ..... ........ ... ... .... .. ...................................................
Zero-For-Zero Tariffs ................................................................................................................................... 3
India's Energy Strategy ............................................................................................................................... 3
China's Crackdown on Neijuan .................................................................................................................. 5
India’s Capital Gains Tax ............................................................................................................................. 5
Global Race for Copper Resources ............................................................................................................ 7
NITI Aayog's Report on Women's Financial Empowerment ................................................................... 7
US Crypto Strategic Reserve ....................................................................................................................... 9
Indian Government Proposes Tax Revenue Cuts for States ................................................................ 10
Philanthropy in India ................................................................................................................................. 10
Implications of US Withdrawal from IMF and World Bank ................................................................... 11
Centre Proposes New Tax Measures on Crypto Assets ........................................................................ 13
Impact of Corporate Tax Cuts .................................................................................................................. 14
RBI Conducts $10 Billion Dollar/Rupee Swap Auction .......................................................................... 14
Working Hours and Economic Impact in India ...................................................................................... 15
New India Co-operative Bank Crisis and DICGC's Role ......................................................................... 16
Bharat Tex 2025 ......................................................................................................................................... 17
Key Features of New Income Tax Bill 2025 ............................................................................................ 19
SEBI Proposes New Guidelines for ESG Rating Providers .................................................................... 20
IEA Releases India Gas Market Report .................................................................................................... 21
Logistics Performance Index, 2023 ......................................................................................................... 22
NCAER Recommends State-Level Fiscal Councils .................................................................................. 23
NIIF To Raise $2 Billion Private Credit Fund ........................................................................................... 24
SEBI Launches MITRA Platform ............................................................................................................... 25
Gross Domestic Knowledge Product (GDKP) ......................................................................................... 26
India Establishes European Free Trade Association Desk .................................................................... 27
Standing Deposit Facility .......................................................................................................................... 28
RBI Introduces Additional Factor Authentication for International Transactions ............................. 29
Negotiated Dealing System-Order Matching (NDS-OM) Platform ...................................................... 30
RBI Repo Rate Cut ...................................................................................................................................... 31
Bank.in Domain .......................................................................................................................................... 32
New Income Tax Bill .................................................................................................................................. 33
RBI's Monetary Policy and Rate Cut Expectations ................................................................................. 34
Import Duty Waiver on Life-Saving Drugs .............................................................................................. 35
Basalt Mining Begins at Deocha-Pachami .............................................................................................. 36
Ukraine's Rare Earths ................................................................................................................................ 37
China's Counter Tariffs Against the US ................................................................................................... 38
U.S. Sovereign Wealth Fund Proposal for TikTok Purchase ................................................................. 39
Indian Railways' Mission 3000 ................................................................................................................. 40
OPEC+ Maintains Oil Output Policy Amid Global Tensions .................................................................. 41
Indian Rupee Hits All-Time Low ............................................................................................................... 42
US Imposes Tariffs ..................................................................................................................................... 43
Union Budget 2025 .................................................................................................................................... 44
Withdrawal of Track and Trace System for Pharmaceuticals ............................................................... 51

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 Business, Economy & Banking Current Affairs [PDF E-Book / 1 Year]
RBI Conducts $5 Billion Dollar-Rupee Swap Auction ............................................................................ 51
The Rise of Card Tokenisation in India ................................................................................................... 52
SEBI Implements New Guidelines for Market Infrastructure Institutions ......................................... 53
India-Middle East-Europe Economic Corridor Developments ............................................................. 55
Household Consumption Expenditure Survey (HCES) 2023-24 ........................................................... 57
Annual Survey of Unincorporated Sector Enterprises (ASUSE) 2023-24 ............................................. 58
India and Oman CEPA and DTAA ............................................................................................................. 59
CRED Launches Beta E-Rupee Wallet ...................................................................................................... 60
UPI's Dominance in India's Digital Payment Landscape ...................................................................... 61
RBI's Liquidity Measures ........................................................................................................................... 62
Punjab National Bank Integrates NCRP Solution for Cybersecurity ................................................... 63
India's Forex Reserves Decline ................................................................................................................. 64
Insolvency and Bankruptcy Code Cases Slow Down ............................................................................. 65
Surge in Banking Complaints Under Ombudsman Scheme ................................................................ 66
CBIC Introduces Temporary Identification Number ............................................................................. 67
Unified Lending Interface (ULI) Pilot ....................................................................................................... 68
Rising Geo-Economic Fragmentation Threatens Global GDP .............................................................. 70
Global Foreign Direct Investment Decline ............................................................................................. 71
Sebi's New When-Listed Trading Platform Explained ........................................................................... 72
India's Manufacturing Vision for Tier 2 and 3 Cities ............................................................................. 73
India's Semiconductor and Electronics Manufacturing Initiatives ...................................................... 74
MeitY Releases "Estimation and Measurement of India’s Digital Economy" Report ........................ 76
US Withdrawal from OECD Global Tax Deal ........................................................................................... 77
Diamond Imprest Authorization Scheme ............................................................................................... 78
European Banks and NZBA ...................................................................................................................... 79
India’s Economic Growth Surge ............................................................................................................... 80
India's GDP Growth Projections ............................................................................................................... 81
Rupee's Real Effective Exchange Rate (REER) ......................................................................................... 82
Interest Equalisation Scheme Extension ................................................................................................ 83
RINL Revival Package Announced ........................................................................................................... 83
India in QS World Future Skills Index ...................................................................................................... 84
RBI Introduces Daily VRR Auctions .......................................................................................................... 85
FEMA Regulations Update 2025 ............................................................................................................... 86
Why Union Budget is Presented on February 1? ................................................................................... 88
CII's 10-Point Agenda for Ease of Doing Business ................................................................................ 89
India's Higher Education Crisis ................................................................................................................ 90
World Economic Situation and Prospects Report 2025 ........................................................................ 91
Startups Return to India Post Angel Tax Abolition ................................................................................ 93
ICEGATE and Trade Data Challenges ...................................................................................................... 94
India's GDP Growth Forecast for FY25 .................................................................................................... 95
Kandla Port Capacity Expansion Announced in 2025 ........................................................................... 96
Challenges in Corporate Tax and Excise Duty Collections ................................................................... 98
Income Inequality Trends in India 2023 ................................................................................................. 99
RBI Mandates 15-Day Credit Score Updates ........................................................................................ 100
NYC Launches Congestion Pricing Initiative ........................................................................................ 102

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 Business, Economy & Banking Current Affairs [PDF E-Book / 1 Year]
Why Rupee Fell to Record Low ............................................................................................................... 103
CCI Sets New Standards in M&A Regulations ...................................................................................... 104
Rising Costs of Drug-Resistant Infections ............................................................................................ 105
Ramesh Chand Committee Set Up to Update WPI Base Year ........................................................... 106
India Updates GDP Base Year to 2022-23 ............................................................................................ 108
Banks' Profitability Rises for 6th Consecutive Year in FY24: RBI Report ........................................... 109
India-Australia Trade Agreement Celebrates Two Years ................................................................... 110
BD475-2: India's Biggest and Advanced Crawler Dozer ..................................................................... 111
India's Record Coal Production in 2023-24 .......................................................................................... 112
Surge in Bank Fraud Cases in 2024 ....................................................................................................... 113
North East Bankers Conclave 2024 ....................................................................................................... 114
Annual Survey of Unincorporated Sector Enterprises (ASUSE) by MoSPI ........................................ 116
New and Small Businesses to Get GST Registration in 3 Days .......................................................... 117
Decline in Domestic Migration in India ................................................................................................ 118
TRAI Introduces New Telecom Regulations ......................................................................................... 119
India to Lend USD $500 Million to India for Sustainable Infrastructure .......................................... 120
GST Council Implements "Track and Trace Mechanism" ................................................................... 121
Real-Time Payments to Boost India's GDP by $76.5B ......................................................................... 122
Fiscal Responsibility and Budget Management (FRBM) Act, 2003 .................................................... 123
India Tops Global Remittances for 2024 ............................................................................................... 124
World Bank Approves $2 billion for Ukraine, Including US Loan Funds .......................................... 125
Direct Tax Collection Surges in 2024-25 ............................................................................................... 126
India's Alternative Assets Market Set to Reach $2 Trillion by 2034 ................................................... 127
Delhi and Bengaluru Lead in India's Crypto Investment ................................................................... 128
Surge in Indian Capital Markets Post-Covid-19 ................................................................................... 129
India Becomes Third Largest Smartphone Exporter .......................................................................... 130
OPEC Fund Approves $1 Billion in Development Aid .......................................................................... 131
India’s Path to Economic Growth and Investment .............................................................................. 132
Gujarat's First Semiconductor Assembly Plant Opens ........................................................................ 133
RBI Tackles Unclaimed Deposits in India ............................................................................................. 134
India’s Data Centre set for $100 Billion Investment by 2027 ............................................................. 135
3rd India-UK Financial Markets Dialogue ............................................................................................. 136
Union Budget 2025: India's Fiscal Deficit Challenges Ahead ............................................................. 138
Banking System Liquidity Tightens Ahead of Tax Payments ............................................................. 139
India's Economic Growth Forecast for 2024 ........................................................................................ 140
Consumer Confidence Survey(CCS) ....................................................................................................... 141
RBI Releases Handbook of Statistics on Indian States 2023-24 ........................................................ 142
India Surpasses $1 Trillion in FDI .......................................................................................................... 143
RBI Launches Podcast Series for Public Communication ................................................................... 144
World Bank Pledges $100 Billion to Support Poorest Nations .......................................................... 145
India’s Forex Reserves Show Significant Increase ............................................................................... 146
Insurance Amendment Bill ..................................................................................................................... 147
What is MuleHunter.AI? .......................................................................................................................... 148
RBI Increases UPI Lite Wallet and Transaction Limits ........................................................................ 149
What is National Legal Metrology (eMaap) Portal? ............................................................................. 150

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 Business, Economy & Banking Current Affairs [PDF E-Book / 1 Year]
India’s UPI Achieves Record Transactions in October ........................................................................ 151
Oilfields (Regulation and Development) Amendment Bill, 2024 ....................................................... 153
CBIC Host Global India Authorised Economic Operator (AEO) Programme .................................... 154
Masato Kanda Elected as ADB President .............................................................................................. 155
India Resumes Free Trade Agreements (FTAs) .................................................................................... 156
Apple, Google, and Meta See Faster Growth in India than Globally ................................................. 157
What is Aadhaar Enabled Payment System (AEPS)? ............................................................................ 158
India and EFTA - Trade Agreement ....................................................................................................... 159
Telangana to Establish Joint Consultative Committee with CII ......................................................... 160
Tamil Nadu's SGST Collections Surge in 2024 ...................................................................................... 161
Confederation of Indian Industry (CII) Launches Strategy Cell ......................................................... 162
IMF Approves Sri Lanka's Third Bailout Review ................................................................................... 163
India Among Top 10 Countries with AI Readiness .............................................................................. 164
India's Foreign Exchange Reserves 2024 - Update ............................................................................. 165
India and Maldives Enhance Currency Cooperation ........................................................................... 166
Supreme Court Rules on Telecom Tax Credits .................................................................................... 167
ASEAN-India Free Trade Agreement (AIFTA) Review .......................................................................... 168
India-Australia Annual Summit 2024 .................................................................................................... 169
GAIL Wins SAP ACE Award for Financial Innovation ........................................................................... 170
Income Tax Campaign for Foreign Assets Awareness ....................................................................... 171
India’s Exports Surge in October 2024 ................................................................................................. 172
Global Freight Summit 2024 .................................................................................................................. 174
Symbiosis University First Overseas Campus at Dubai ...................................................................... 175
State Bank of India is seeking a $1.25 Billion Loan: India's Largest Bank Loan of 2024 ................ 176
CII Mangalore Integrate 2024 Conclave ............................................................................................... 177
Belgium's Economic Challenges and Forecasts ................................................................................... 178
UK Plans Major Pension Fund Reforms ................................................................................................ 179
Arvinder Singh Sahney Becomes Indian Oil Chairman ....................................................................... 180
SBI, HDFC Bank, ICICI Bank: RBI's 2024 List of Domestic Systemically Important Banks (D-SIBs) ..
181
43rd India International Trade Fair (IITF) 2024 Inaugurated ............................................................. 183
Euro Hits One-Year Low Amid Economic Concerns ............................................................................ 184
IBM Opens Gen-AI Centre in Kochi ....................................................................................................... 185
Pakistan's Ongoing Relationship with the IMF .................................................................................... 186
Air India and Vistara Merger .................................................................................................................. 188
Amul Expands to European Market ...................................................................................................... 189
India’s Renewable Energy Growth and Investment ............................................................................ 190
Gujarat's Semiconductor Policy Drives Economic Growth ................................................................. 192
India and ADB Sign $200 Million Loan for Uttarakhand ..................................................................... 193
EPFO Sees 18.53 Lakh New Members in August 2024 ........................................................................ 194
WHO Receives $700 Million Pledges for 2025-2028 Budget .............................................................. 195
World Bank Establishes Fund to Support Ukraine's Recovery ........................................................... 196
Southern States Lead in GDP Contribution .......................................................................................... 197
54th GST Council Meeting ...................................................................................................................... 198
India's Forex Reserves Hit Record High of USD 683.987 Billion ........................................................ 199

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 Business, Economy & Banking Current Affairs [PDF E-Book / 1 Year]
Berkshire Hathaway First Non-Tech Company to Hit $1 Trillion ....................................................... 200
RBI Announces Future Launch of Unified Lending Interface (ULI) ................................................... 201
Jackson Hole Symposium 2024 .............................................................................................................. 202
CCI Raises Concerns Over $8.5 Billion Reliance-Disney Merger ........................................................ 203
What is Dynamic Reference Rate? ......................................................................................................... 204
What is the 'yen carry trade’? ................................................................................................................. 205
What is B-Ready Index? .......................................................................................................................... 206
ADB Loans $200 Million for India's Waste Management Improvement .......................................... 206
India aims for $30 Trillion Economy by 2047 ....................................................................................... 207
Pakistan Seeks Debt Re-Profiling for IMF Bailout Package ................................................................ 208
What is LTCG Tax? .................................................................................................................................... 209
What is Agristack and how will it work? ................................................................................................ 210
What is a Climate Finance Taxonomy? .................................................................................................. 211
Economic Survey 2023-24 - Recent Updates ........................................................................................ 212
IMF Agrees to $7 Billion Loan Program for Pakistan .......................................................................... 213
What is Angel Tax? - Current Updates (July, 2024) .............................................................................. 214
India, Russia Aim for $100 Billion Trade Target by 2030 .................................................................... 215
India Creates 46.7 Million Jobs in Fiscal 2023-24 ................................................................................. 215
Gujarat FDI Jumps 55%, Hits $7.3 Billion in FY 2023-24 ...................................................................... 216
ADB to build 400 MW Solar Power Plant in Gujarat ............................................................................ 217
Bharat Bill Payment System ................................................................................................................... 218
Tata Leads as India's Most Valuable Brand, Grows 9% ...................................................................... 219
What is Project Nexus by RBI? ............................................................................................................... 220
India Tops Global Remittance with $125 Billion in 2023 .................................................................... 221
World Bank Grants $1.5 Billion for India's Green Energy Push ......................................................... 222
RBI Revises SAARC Currency Swap Framework for 2024-2027 .......................................................... 223
What is e-Rupee, India's Digital Currency? ........................................................................................... 224
World Investment Report 2024 - India's FDI Falls 43% in 2023 ......................................................... 224
67th Global Environment Facility Council ............................................................................................. 226
Indian Post Office Act, 1898 ................................................................................................................... 227
ADB Approves $170 Million for India's Health System Preparedness .............................................. 227
Nvidia Becomes the World's Most Valuable Company ....................................................................... 228
RBI Awarded "Risk Manager of the Year 2024" ................................................................................... 229
Top Indian Firms Gain ₹85,582 Crore in Market Valuation ................................................................ 230
World Bank Supports Chennai's Sustainable Waste Management Goals ........................................ 231
How Will Pakistan Resolve Tax Policy Disagreements? ...................................................................... 231
India Among Top Five Global Destinations for Real Estate Investment ........................................... 232
India Exim Bank Opens Nairobi Office to Boost East Africa Trade ................................................... 234
Sebi Wins 'Best Business Regulator' Award in Asia Pacific ................................................................. 235
India's Foreign Exchange Reserves Hit Record $651.5 Billion ........................................................... 236
Nvidia Surpasses Apple With $3 Trillion Market Cap .......................................................................... 237
Peru Adopts India's UPI System for Instant Digital Payments .......................................................... 238
Nvidia Stock Hits Record High, Approaches Apple's Value ................................................................ 239
RBI Releases Final Guidelines for Fintech SRO .................................................................................... 239
ADB Commits $2.6 Billion to India for Various Projects ..................................................................... 240

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 Business, Economy & Banking Current Affairs [PDF E-Book / 1 Year]
RBI Governor Unveils Key Financial Initiatives for 2023 ..................................................................... 241
Four European Union Banks Seek RBI Nod for Clearing Model ........................................................ 242
Adani Ports Becomes First Adani Group Company to Join Sensex ................................................... 242
Zig- Zimbabwe Rolls Out World Newest and Gold-Backed Currency ............................................... 243
Centre Sanctions Rs 21,253 Crore to Tackle Kerala's Crisis ................................................................ 244
Sebi Cracks Down on Gaming Apps Involved in Virtual Trading ....................................................... 245
Myanmar Junta Revives $3.6 Billion Chinese-Backed Dam Project ................................................... 246
India's Market Capitalization Crosses $5 Trillion Milestone ............................................................... 247
RBI Approves Highest-Ever Dividend Of Rs 2.11 Lakh Crore for Government ................................ 249
Bank of Maharashtra Leads in FY24 Business Growth ....................................................................... 250
RBI Scrutinizes Gold Loan Norms To Tighten Grip .............................................................................. 251
EPFO Introduces Auto-Mode for Education, Marriage Claims ........................................................... 252
New AIS Feature Enhances Income Tax Confirmation Process ......................................................... 253
India's April Retail Inflation Eases Marginally to 4.83% ...................................................................... 255
TCS Launches AI Center of Excellence in Paris .................................................................................... 256
PM Gati Shakti Boosts Social Security, Expands Health Infrastructure ............................................ 257
ICMR Warns: Packaged Food Labels May Mislead Consumers ......................................................... 258
India's Spice Board Issues New EtO Contamination Guidelines ....................................................... 260
ICMR Releases New Dietary Guidelines ................................................................................................ 261
Proposed Policy to Exclude Stubble Burners from MSP Benefits ...................................................... 263
NHAI Explores New Self-Healing Road Technologies ......................................................................... 264
MEIL Wins 2,000 MW Sharavathi Pumped Storage Power Project ................................................... 265
Telecom Industry Seeks Ban on Illegal WiFi 6E Routers ..................................................................... 266
RBI Proposes New Rules for Electronic Trading Platforms ................................................................ 267
200 More Gati Shakti Cargo Terminals: Indian Railways .................................................................... 268
CII’s Corporate Governance Charter for Startups ............................................................................... 270
RBI Releases Digital Lending – Transparency in Aggregation of Loan Products from Multiple
Lenders ..................................................................................................................................................... 271
RBI Curbs on Kotak Bank ........................................................................................................................ 272
India Requires 8-10% Annual Growth to Harness Demographic Dividend: RBI’s Report .............. 273
NABARD Launches Climate Strategy 2030 for Green Financing ....................................................... 274
Atul Goel Panel to Finalize List of OTC Drugs for Sale at General Stores ......................................... 276
Government allies With SBI Card and Telcos to Tackle OTP Frauds ................................................. 277
Centre Seeks Supreme Court's Clarification on Administrative Allocation of Spectrum ................ 278
India's Jewellery Exports Surge in FY24 ................................................................................................ 280
What is Project Nimbus? ......................................................................................................................... 281
Ethylene Oxide Contamination in Indian Spice Brands ...................................................................... 282
Space Debris Threat to Earth's Defenses ............................................................................................. 283
SEBI’s Proposed Framework for Undervalued Companies ................................................................ 284
Current Forex Reserves of India ............................................................................................................ 285
Bharat BillPay Enables SBI NCMC Card Recharge ............................................................................... 286
Kerala to introduce SOPs under One Health initiative ....................................................................... 287
PayTM approved by NPCI for User Bank Migration ............................................................................ 288
India's Rising Pulses Imports ................................................................................................................. 290
India Developing Indigenous High-Speed Bullet Trains .................................................................... 291

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 Business, Economy & Banking Current Affairs [PDF E-Book / 1 Year]
CBDT Signs Record Number of 125 Advance Pricing Agreements in FY24 ...................................... 292
Indians Permitted to Hedge Gold Price Risk Overseas Markets ....................................................... 293
Government to Establish Cotton Test Labs in 6 States for Kasturi Cotton ....................................... 294
UPI Rule Change: Money in PPI Wallets Can Be Spent Using Any UPI ............................................. 296
HDFC Bank opens branch in Lakshadweep's Kavaratti Island .......................................................... 297
SWAMIH Fund Helps in Completion of 28,000 Homes Since 2019 ................................................... 297
Cochin Shipyard Signs Master Shipyard Repair Agreement with U.S. Navy .................................... 298
Government Releases Guidelines for Green Hydrogen Use in Transport Sector ........................... 299
RBI Decides to Keep Policy Rates Unchanged ..................................................................................... 301
Issue of State Governments Power to Levy Excise Duty on Industrial Alcohol ............................... 302
India's Market Cap Likely to Hit $10 Trillion by 2030 .......................................................................... 303
22 New Products Added to Geographical Indication (GI) Registry ................................................... 304
Digital India Trust Agency (DIGITA) ....................................................................................................... 305
What is the T+0 Trading Settlement Cycle? .......................................................................................... 306
Satellite-Based Toll Collection System in India .................................................................................... 307
What are Meme Coins? ........................................................................................................................... 308
Bima Sugam Marketplace ...................................................................................................................... 310
Self-Regulatory Organisations (SROs) for Regulated Entities ............................................................ 311
RBI State of the Economy Report (March 2024) .................................................................................. 313
Electoral Bonds Data ............................................................................................................................... 314
India's Retail Inflation Eases to 5.09% in February 2024 .................................................................... 315

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 Business, Economy & Banking Current Affairs [PDF E-Book / 1 Year]

Zero-For-Zero Tariffs
Published On Mar 12, 2025

Recently, India is exploring trade strategies with the United States amidst rising tariff
threats. Industry stakeholders advocate for a zero-for-zero tariff approach. This method
proposes eliminating tariffs on specific products rather than negotiating a broad trade
agreement. Proponents argue this could enhance India’s export competitiveness while
protecting sensitive sectors.
About Zero-For-Zero Tariffs
Zero-for-zero tariffs involve both countries identifying specific product categories to
eliminate tariffs on them.
This arrangement aims to avoid blanket tariffs or extensive trade agreements.
The Global Trade Research Initiative (GTRI) claims that around 90% of industrial
goods traded between India and the US could qualify. This strategy allows India to
maintain its trade surplus, which was approximately $46 billion in 2024.
Benefits of the Zero-For-Zero Approach
The zero-for-zero strategy offers several advantages. It can be implemented quickly,
unlike lengthy bilateral trade agreements. This method is seen as beneficial for India, as it
could mitigate the impact of US tariffs. By focusing on specific goods, India can protect
sensitive industries such as agriculture and automobiles. The GTRI argues that potential
tariffs on the remaining 10% of goods will have minimal impact.
Concerns Over Bilateral Trade Agreements
Critics of broad trade agreements warn of potential risks. They highlight the vulnerability
of India’s automobile and agricultural sectors. A case study of Australia shows that
reduced tariffs can harm domestic industries. The GTRI has raised concerns that US access
to Indian agricultural markets could set a dangerous precedent, potentially harming
millions of farmers.
Impact on the Textile Industry
The textile industry views the zero-for-zero approach favourably, particularly in light of the
“China Plus One” strategy. This strategy encourages businesses to diversify away from
China. With US tariffs on Chinese textiles, Indian exports could become more competitive.
The GTRI estimates that eliminating tariffs could raise US textile imports from Indily.
Challenges Ahead
Despite the benefits, challenges remain. The US is keen to expand its presence in Indian
markets, particularly in automobiles and agriculture. US officials have indicated a
preference for comprehensive trade agreements rather than product-specific
arrangements. This stance raises concerns about the future of the zero-for-zero approach
and its feasibility.[no_toc]
India's Energy Strategy
Published On Mar 11, 2025

Recently, India is enhancing its energy procurement strategy, particularly from the United

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 Business, Economy & Banking Current Affairs [PDF E-Book / 1 Year]

States. This shift comes amid rising global energy demands and geopolitical tensions.
Prime Minister Narendra Modi’s discussions with U.S. President Donald Trump mark
commitment to increase oil and natural gas imports. India aims to secure its energy future
while diversifying its sources.
Current Energy Landscape
India is the world’s third-largest oil importer. Over 85% of its crude oil needs are met
through imports. In 2024, India’s energy purchases from the U.S. are expected to rise
from $15 billion to $25 billion. The U.S. exported approximately 357,000 barrels of crude
oil per day to India in February 2025. This increase in imports aims to boost energy ties
and contribute to doubling bilateral trade.
Liquefied Natural Gas (LNG) Supply
India is keen to enhance its liquefied natural gas imports. The objective is to establish the
U.S. as a leading supplier of LNG. In 2023-24, India imported 31.80 billion cubic metres of
LNG. The government aims to increase natural gas consumption from 6% to 15% by
diversifying supply sources. The U.S. has emerged as LNG supplier, especially as European
nations reconsider their energy strategies.
Domestic Production and Import Dependence
India’s domestic crude oil production accounts for less than 13% of its requirements. In
2023-24, India imported 234.26 million tonnes of crude oil. The import bill decreased to
$133.37 billion due to lower international prices. Despite a reduction in costs, India’s
dependency on imported oil continues to rise, reaching 87.8%.
Strategic Partnerships and Infrastructure Development
The Government of India is focused on developing energy infrastructure. Enhanced
cooperation with U.S. energy companies is essential. Investments in oil and gas
infrastructure will support supply diversification and energy security. Additionally, India
seeks full membership in the International Energy Agency to strengthen its energy
strategy further.
Future Energy Roadmap
India’s energy roadmap includes reducing import dependency and increasing the use of
renewable sources. The government promotes alternatives such as ethanol and biodiesel.
Significant infrastructure development is underway to support this transition. The goal is
to prepare for a future where both domestic production and renewable energy play
crucial roles.
Geopolitical Implications
India’s energy strategy is influenced by global geopolitics. The ongoing situation in
Ukraine has altered energy supply dynamics. While India seeks to enhance ties with the
U.S., it also continues to engage with other suppliers, including Russia. The diversification
of energy sources is vital for India to mitigate risks associated with geopolitical
tensions.[no_toc]

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 Business, Economy & Banking Current Affairs [PDF E-Book / 1 Year]

China's Crackdown on Neijuan

Published On Mar 06, 2025

Recently, Chinese Premier Li Qiang addressed the National People’s Congress, denoting
the government’s commitment to combating ‘Neijuan’. This term, meaning involutionary
competition, describes a cycle of diminishing returns caused by excessive competition. As
China’s economy slows, the government seeks to create a sustainable business
environment while addressing international criticism.
About Neijuan
Neijuan refers to intense competition that leads to reduced returns. It forces companies
and individuals to exert more effort without proportional benefits. In the business context,
firms engage in price wars and overproduction to maintain market share, harming
profitability. For workers, it translates to longer hours and constant upskilling without a
better quality of life.
Impact on Industries
Neijuan is evident in China’s thriving sectors, particularly in electric vehicles (EVs).
Companies slash prices to outdo each other, resulting in unsustainable practices. This
aggressive competition leads to lower profits and market instability.
Government Response
The Chinese government has intensified its approach to curb Neijuan. This marks a shift in
policy focus towards sustainable growth. Officials aim to eliminate market fragmentation
and local protectionism. They are promoting fair competition and innovation over
destructive price wars.
Policy Reforms
China is implementing several policy reforms to address Neijuan. These include stricter
regulations on competition and meetings with key industry players to discuss solutions.
The focus is on encouraging innovation and reducing the emphasis on price competition.
Global Competition and Tensions
China’s crackdown on Neijuan occurs amid rising global tensions, particularly with the US
and the EU. Western nations accuse China of dumping excess capacity into their markets,
undermining local industries. China refutes these claims, asserting that its industrial
growth is driven by innovation and demand.
Future Implications
The recognition of Neijuan by Chinese leaders indicates an awareness of the risks
associated with unchecked competition. By addressing these challenges, China aims to
encourage a more sustainable economic environment that benefits both businesses and
workers.[no_toc]
India’s Capital Gains Tax
Published On Mar 04, 2025

India’s recent decision to impose a capital gains tax on foreign investors has stirred
debate. Market experts, including Samir Arora, have termed it a major misstep by the

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government. The tax is seen as a deterrent for foreign institutional investors (FIIs),
potentially leading to a decline in foreign investment in Indian markets.
About Capital Gains Tax
Capital gains tax is levied on profits from the sale of capital assets.
These assets can include stocks, mutual funds, property, and gold.
When these assets are sold, the profit made is classified as a capital gain.
Types of Capital Gains Tax
There are two primary types of capital gains tax:
Short-term capital gains (STCG): This applies when assets are sold within a short
duration. It is generally taxed at a higher rate.
Long-term capital gains (LTCG): This applies when assets are held for an extended
period. It is usually taxed at a lower rate to encourage long-term investments.
Short-term Capital Gains (STCG) in India
In India, STCG applies when assets like stocks and real estate are sold within specific
holding periods. For equities, this is typically less than one year, and for real estate, less
than two years. STCG on equity investments is taxed at 15%, while other assets are taxed
according to the investor’s income tax slab.
Calculating STCG
STCG is calculated by subtracting the cost of acquisition and any related expenses from
the selling price. The formula is – STCG = Sale Price – (Purchase Price + Improvement Costs
+ Transfer Expenses).
Long-term Capital Gains (LTCG) in India
LTCG on stocks and equity-oriented mutual funds is taxed at 12.5% for profits exceeding
₹1.25 lakh per year. The Union Budget 2024-25 increased the LTCG tax rate and eliminated
the indexation benefit, which previously allowed inflation adjustments on the purchase
price.
Calculating LTCG
LTCG is determined by subtracting the cost of acquisition from the sale price. For high-
value assets, certain transaction costs can also be deducted.
Investor Concerns
The removal of indexation benefits has raised concerns among investors. It increases the
tax burden, particularly for those selling property and unlisted assets. Foreign investors
are notably affected, as they lack tax set-offs in their home countries.
Impact on the Indian Market
Since October 2024, foreign investors have withdrawn over ₹2 trillion from Indian equities.
Factors contributing to this trend include higher capital gains tax rates, weak corporate
earnings, a depreciating rupee, and stronger US markets offering better returns.
Comparative Taxation
India’s capital gains tax structure differs from other countries. For instance, Australia taxes
50% of capital gains, while the United States employs a progressive tax system. In

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contrast, countries like the United Arab Emirates impose no capital gains tax.[no_toc]
Global Race for Copper Resources
Published On Mar 04, 2025

Currently, the global demand for copper is escalating. This surge is driven by the rise of
electric vehicles and clean energy technologies. Countries like India, China, and the United
States are prioritising the establishment of secure supply chains.
India’s Copper Exploration Initiatives
Domestic copper production in India has been declining. In 2023-24, production was
3.78 million tonnes, 8% lower than in 2018-19. Consequently, India’s reliance on
copper imports has increased .
India has secured a 9,000-sq-km block in Zambia for copper and cobalt exploration.
This region is known for its high-grade deposits. The Geological Survey of India will
lead the exploration.
Importance of Copper
Copper is the second-most used material in the U.S. defence sector. The projected
demand for copper is expected to outstrip supply by 2035. This scenario puts stress on the
importance of securing mining operations and developing domestic capabilities.
Global Copper Supply Dynamics
China controls about half of the world’s smelting and refining capacity.
The country is currently tightening its copper ore supply as it aims to manage
smelting overcapacity.
This has implications for global supply chains.
Geopolitical Risks in Mining Investments
The Democratic Republic of Congo, Chile, and Peru are critical players in copper mining.
These countries have substantial reserves and are expected to meet the rising demand.
However, investing in overseas copper assets carries geopolitical risks.
Future Outlook for Copper Production
The International Energy Agency predicts that Africa’s share in critical mineral production
will continue to rise. The DRC is expected to become the second-largest copper supplier by
2030. The Indian Ministry of Mines is working to acquire more mineral assets across
Africa. However, the global competition for copper resources will intensify.
Challenges in the Copper Supply Chain
The copper supply chain faces several challenges. The U.S. has launched investigations
into how copper imports affect national security. This initiative aims to identify
vulnerabilities in the supply chain. The decline in treatment and refining charges in China
indicates an oversupply issue. Many smelters are likely to suspend operations due to
falling margins.[no_toc]
NITI Aayog's Report on Women's Financial Empowerment
Published On Mar 04, 2025

NITI Aayog recently published a report titled From Borrowers to Builders – Women’s Role

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in India’s Financial Growth Story. This report marks the increasing participation of women
in seeking credit and managing their financial health. As of December 2024, 27 million
women were monitoring their credit scores. This reflects a 42% increase from the previous
year, indicating rise in financial awareness among women in India.
Women’s Financial Participation
The report reveals that women’s engagement in financial activities has tripled from
2019 to 2024.
This trend is particularly strong in semi-urban and rural areas, where 60% of women
borrowers reside.
Women are increasingly taking loans for diverse purposes, including business,
agriculture, and property.
Growth in Credit Monitoring
Women’s share of the self-monitoring credit base rose to 19.43% in December 2024.
This increase from 17.89% in 2023 shows growing financial literacy.
Notably, non-metro regions saw a 48% increase in women actively monitoring their
credit compared to 30% in metro areas.
Regional
Maharashtra, Tamil Nadu, Karnataka, Uttar Pradesh, and Telangana accounted for
nearly half of all self-monitoring women.
The southern region led with 10.2 million women.
Northern states like Rajasthan and Madhya Pradesh exhibited the highest growth
rates in active women borrowers over five years.
Loan Preferences and Trends
Women’s preferences for credit products include loans against property (36%),
agricultural loans (26%), and business loans (25%).
By December 2024, women made up 35% of business borrowers, with a 14%
increase in business loan origination since 2019.
Challenges in Financial Access
Despite progress, challenges remain. Issues such as credit aversion, poor banking
experiences, and barriers related to collateral hinder women’s access to credit. Financial
institutions must address these challenges by creating gender-smart financial products
tailored to women’s needs.
Socio-economic Impact
Women’s financial participation is crucial for India’s economic growth. Encouraging
women entrepreneurship can create up to 170 million employment opportunities. This
shift not only empowers women but also contributes to broader economic development.
The Role of Financial Institutions
Financial institutions are encouraged to design inclusive products that cater to women’s
unique financial needs. Initiatives like the Financing Women Collaborative aim to
encourage an ecosystem that supports women entrepreneurs through access to credit

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and financial literacy.

Future Directions
To sustain this momentum, targeted interventions are essential. There is a need for
programmes that promote financial literacy among younger women, who currently
represent only 27% of retail credit consumers under 30. Bridging this gap will enhance
financial security and encourage entrepreneurship.[no_toc]
US Crypto Strategic Reserve
Published On Mar 04, 2025

Recently, US President Donald Trump announced the formation of a United States ‘Crypto
Strategic Reserve’. This initiative includes major cryptocurrencies such as Bitcoin,
Ethereum, XRP, Solana, and Cardano. The announcement came just before the White
House Crypto Summit, marking shift in the US government’s approach to digital assets.
Background of the Initiative
The establishment of the Crypto Strategic Reserve aims to position the US as a leader in
the digital asset industry. Trump’s previous stance on cryptocurrencies was critical,
labelling them as a ‘scam’. However, his 2024 campaign saw a pivot towards supporting
the crypto sector. This change was influenced by substantial backing from the
cryptocurrency community.
Market Impact
The announcement triggered a $300 billion surge in the global cryptocurrency market.
Bitcoin rose over 10%, reaching $94,821, while Ethereum climbed by 12%. Other
cryptocurrencies like XRP, Solana, and Cardano experienced even more gains of 30%, 20%,
and over 50%, respectively. This rally indicates strong market confidence in the new
strategic reserve.
Regulatory Changes
Trump’s current administration has shifted away from the regulatory-heavy approach of
the previous Biden administration. The Biden administration had proposed a 30% tax on
cryptocurrency miners and pursued enforcement actions against crypto entities. In
contrast, Trump’s policies include nominating crypto advocate Paul Atkins as SEC
chairman and withdrawing investigations into various crypto firms.
Objectives of the Crypto Reserve
The primary goal of the Crypto Strategic Reserve is to enhance the legitimacy and
acceptance of cryptocurrencies. By holding a diverse portfolio of digital assets, the US
government aims to encourage institutional adoption and integration into traditional
financial systems. This initiative could also shape global regulatory standards for
cryptocurrencies.
Future Implications
The establishment of the reserve may prompt other nations to consider similar initiatives,
leading to a more coordinated international regulatory environment. However,
operational details regarding the acquisition and management of the cryptocurrencies

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remain unclear. Currently, the US government holds an estimated $19 billion in Bitcoin,
largely from seizures. It is uncertain if the reserve will include only these assets or if
further acquisitions will be made.[no_toc]
Indian Government Proposes Tax Revenue Cuts for States
Published On Feb 28, 2025

The Government of India is considering a reduction in federal tax revenues allocated to

states. This proposal is set to be presented to the Finance Commission of India, which
plays important role in tax sharing and fiscal relations between the federal and state
governments. The recommendations from the commission are expected by October 31,
2025, and will be binding.
Current Tax Revenue Distribution
Currently, states receive 41% of tax revenues, increase from 20% in 1980. This share has
risen due to the growing fiscal needs of state governments. States primarily spend on
social infrastructure, such as health and education, while the federal government focuses
on physical infrastructure.
Proposed Changes and Financial Implications
The federal government aims to reduce the states’ share to at least 40%. This 1%
reduction could generate approximately Rs 35,000 crore ($4.03 billion) for the federal
government, based on anticipated tax collections. The cabinet is expected to approve this
proposal by March 2025 before it is forwarded to the Finance Commission.
Fiscal Deficits and Spending Priorities
India’s fiscal deficit is projected at 4.8% of GDP for 2024-25, while states have a deficit of
3.2%. States account for over 60% of total government spending, often prioritising social
sectors. The federal government’s spending has increased , particularly post-Covid-19,
leading to calls for a reassessment of tax revenue distribution.
Impact of Goods and Services Tax
The implementation of the Goods and Services Tax (GST) in July 2017 has limited states’
ability to raise revenue independently. This has intensified the need for states to rely on
federal allocations, making any proposed cuts more impactful.
Conditional Grants and Political Implications
The federal government is likely to suggest linking federal grants to states with specific
conditions. This could discourage states from offering cash handouts or debt waivers for
political gain. The decline in revenue-deficit grants from Rs 1.18 trillion in 2021/22 to an
estimated Rs 13,70 crore in 2025/26 reflects this shift.
Future Considerations
The proposed changes could lead to shifts in state spending priorities. States may need to
adjust their budgets to cope with reduced federal support. The overall fiscal landscape in
India may evolve, impacting both governance and public welfare initiatives.[no_toc]
Philanthropy in India
Published On Feb 28, 2025

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The landscape of private philanthropy in India is evolving. Recent reports indicate increase
in funding from high-net-worth individuals (HNIs) over the next five years. This growth is
projected to be between 10% and 12% annually. As of FY24, the total funding for the social
sector in India is approximately ₹25 lakh crore, of which private funding is around ₹1.3
lakh crore.
Current State of Philanthropy
In FY24, public spending constituted 95% of total social sector funding. This includes major
government schemes such as the Mahatma Gandhi National Rural Employment
Guarantee Scheme (MGNREGS) and the Pradhan Mantri Awas Yojana. Private
philanthropy, while growing, remains a small fraction of total funding. Family philanthropy
accounts for about 40% of private contributions.
High-Net-Worth Individuals and Their Contributions
Data shows that the rate of giving among Indian ultra-high-net-worth individuals (UHNIs)
is lower than their counterparts in the United States and the United Kingdom. UHNIs in
India contribute between 0.1% and 0.15% of their wealth to philanthropy. In contrast,
UHNIs in the US give around 1.2% to 2.5%. The top four family-owned firms in India—Tata,
Ambani, Adani, and Birla—account for about 20% of family-run corporate social
responsibility (CSR) spending.
Projections for Future Philanthropy
The growth in the number of HNIs and affluent givers is expected to drive future increases
in private funding. The report anticipates that the population of upper-mid and high-
income households will rise by 2030. CSR spending is also projected to grow at a similar
rate of 10% to 12%. Compliance with CSR regulations is increasing, with more firms
becoming compliant each year.
Focus Areas for Philanthropy
Philanthropic contributions in India are increasingly directed towards gender equity,
diversity, and climate action. Approximately 40% of family donations target initiatives
related to gender and inclusion, while 29% focus on climate issues. Notably, many
philanthropic efforts are led by women, with 55% of families having women at the
forefront of these initiatives.
The Role of Family Offices
Family offices, which manage the wealth of HNIs, are becoming increasingly prevalent.
Their numbers grew from 2018 to 2023. These offices can play important role in
enhancing philanthropic contributions by providing structured services for managing and
channelling funds into the nonprofit sector.[no_toc]
Implications of US Withdrawal from IMF and World Bank
Published On Feb 28, 2025

The potential withdrawal of the United States from key global institutions like the
International Monetary Fund (IMF) and World Bank is raising alarms. This concern follows
the absence of US Treasury Secretary Scott Bessent from recent G20 meetings.

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What Are the IMF and World Bank?

The IMF and World Bank were established post-World War II to promote global
economic stability and integration.
The IMF serves as a lender of last resort, providing financial assistance to countries
facing economic crises. This includes emergency loans and precautionary lines to
prevent financial collapse.
The World Bank, on the other hand, offers low-interest loans for development
projects, such as infrastructure and poverty alleviation. Both institutions also provide
expertise in governance and financial management.
Who Relies on the IMF?
Numerous emerging market countries depend on the IMF for financial stability.
Nations like Argentina and Sri Lanka require IMF assistance to manage their
economic situations.
An IMF programme reassures investors, enhancing confidence in the borrowing
country. This support is crucial for both private and bilateral investors, who often
prefer lending to countries backed by the IMF.
The Role of the World Bank
The World Bank collaborates with private investors through its International Finance
Corporation. This partnership aims to mobilise funding for essential projects, particularly
in clean energy and infrastructure. Developed nations, including the US, utilise the World
Bank to promote global financial stability and encourage responsible economic policies in
recipient countries.
Consequences of US Withdrawal
A US withdrawal from these institutions could lead to disruption. The US is a founding
member and holds substantial voting power, influencing critical decisions. Its absence
would likely empower other nations, particularly China, which seeks a more prominent
role in global finance. This shift could destabilise the current balance of power within
these institutions and diminish their effectiveness.
Impact on Global Economies
The ramifications of US withdrawal could extend beyond institutional functioning. It may
affect global financial stability, as the IMF and World Bank play vital roles in crisis
management. Furthermore, US companies might lose access to lucrative contracts linked
to World Bank projects. The potential restructuring of IMF shareholdings could lead to less
predictable decision-making processes.
Perception of the IMF in Developing Countries
The IMF has faced criticism for its stringent conditions attached to loans, often leading to
public dissent in borrowing countries. While some nations vehemently oppose IMF
interventions, most countries remain members, recognising the necessity of its support in
times of crisis.[no_toc]

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Centre Proposes New Tax Measures on Crypto Assets

Published On Feb 25, 2025

Recently, the Government of India announced changes to the taxation of virtual digital
assets (VDAs). These changes aim to curb the misuse of cryptocurrencies and enhance tax
compliance. The proposed measures will classify VDAs as undisclosed income under the
block assessment scheme. This scheme allows for the assessment of undisclosed income
identified during tax searches.
Definition of Virtual Digital Assets
The definition of VDAs will now encompass all forms of crypto assets. This includes
cryptocurrencies, non-fungible tokens (NFTs), and other digital representations of value.
The definition specifically excludes gift cards and vouchers. By broadening the definition,
the government seeks to capture all relevant transactions within the tax framework.
Definition of Undisclosed Income
Undisclosed income refers to income that has not been reported in an individual’s
income tax return.
The Income Tax Act defines this income to include various assets. These include
money, bullion, jewellery, and other valuables.
With the new proposal, VDAs will also be classified as undisclosed income. This
means any earnings from VDAs that are not reported will be subject to taxation.
Block Assessment Scheme
The block assessment scheme is a method for assessing undisclosed income over a
specified period. This period encompasses the six assessment years prior to the year of
the search. Under this scheme, a consolidated assessment is made for the block period.
The aim is to streamline tax processes and reduce litigation. Once the block assessment is
initiated, no further assessments for that period can occur.
Tax Implications for Non-Disclosure
If an individual fails to disclose income from VDAs, they could face a tax rate of 60%.
In addition, a penalty of 50% may be imposed on the undisclosed income.
This high rate serves as a deterrent against non-disclosure. The government intends
to ensure that all income, including from crypto transactions, is reported accurately.
Reporting Requirements for Crypto Transactions
As part of the proposed changes, entities involved in crypto transactions will be required
to report these activities. This requirement aims to improve transparency in the crypto
market. The new reporting obligations will come into effect on April 1, 2026. This move is
part of a broader effort to regulate the cryptocurrency sector effectively.
Implications for Tax Administration
The proposed changes are expected to enhance tax administration efficiency. By including
VDAs in the undisclosed income category, the government aims to increase tax
compliance. The revisions are designed to reduce the scope for tax evasion in the rapidly
evolving digital asset landscape.[no_toc]

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Impact of Corporate Tax Cuts

Published On Feb 25, 2025

The Parliamentary Standing Committee on Finance convened on February 24, 2025, to

scrutinise the implications of corporate tax cuts introduced in 2019. This meeting comes
as the Union Budget faces review ahead of the parliamentary session reconvening on
March 10. The committee questioned government officials on the effectiveness of these
tax cuts in stimulating private investment.
Corporate Tax Cuts
Corporate tax cuts in India were implemented in September 2019.
The government aimed to boost economic growth by increasing private sector
investment.
However, the decision resulted in a revenue loss of approximately ₹1.84 lakh crore in
the first two years.
Government’s Financial Strategy
The government must address the potential revenue shortfalls resulting from both
corporate tax cuts and income tax rebates. This situation poses challenges given India’s
already high debt-to-GDP ratio. The committee’s discussions included strategies for
balancing fiscal responsibility while promoting economic growth.
Importance of Corporate Tax
Corporate tax is important revenue source for the government. It funds essential public
services and contributes to wealth redistribution. The corporate tax rate can influence
business competitiveness and investment decisions. A high corporate tax may deter
foreign investment, while a lower tax rate could attract more businesses.
Future Directions
The committee’s inquiry puts stress on the need for a comprehensive assessment of tax
policies. Future fiscal strategies should consider both the immediate economic impacts
and long-term sustainability. Policymakers must find a balance between encouraging
investment and maintaining adequate government revenue.[no_toc]
RBI Conducts $10 Billion Dollar/Rupee Swap Auction
Published On Feb 22, 2025

The Reserve Bank of India (RBI) has announced $10 billion three-year dollar/rupee swap
auction. Scheduled for February 28, this initiative aims to address the persistent liquidity
deficits within the banking system. The RBI’s recent actions reflect a proactive approach to
stabilising the financial landscape amidst ongoing cash shortages.
Overview of the Dollar/Rupee Swap Auction
The RBI’s swap auction is designed to infuse durable liquidity into the banking
system.
The first leg of the transaction will settle on March 4, potentially injecting around 870
billion rupees.
This is a response to the increasing cash deficits faced by banks, which have

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persisted despite previous liquidity measures.

Previous Liquidity Measures
Earlier in the year, the RBI conducted a six-month swap, infusing $5.1 billion into the
banking system.
However, liquidity conditions remained tight. Market analysts suggest that the
current three-year swap is more reassuring compared to shorter-term options,
indicating a long-term strategy for liquidity management.
Impact on Banking and Interest Rates
The extended maturity of the swap indicates the RBI’s intent to ensure effective
transmission of future rate cuts. The central bank recently cut the repo rate for the first
time in nearly five years. Sufficient liquidity is crucial for lenders to implement these cuts
effectively.
Changes in Forex Strategy
Analysts suggest that the RBI’s approach may reflect a shift in its foreign exchange
strategy. The central bank appears to be showing greater tolerance for a gradual
depreciation of the rupee. This shift could help manage the liquidity situation while
maintaining currency stability.
Recent Liquidity Deficits
As of February 20, India’s banking system faced a liquidity deficit of approximately 1.7
trillion rupees. This deficit is expected to widen as the financial year draws to a close,
when liquidity stress typically peaks. The RBI has injected over 3.6 trillion rupees into the
system through various measures, including open market operations and FX swaps.
Foreign Exchange Reserves and Currency Trends
India’s foreign exchange reserves have declined by $2.5 billion, reflecting pressures in the
currency market. The rupee depreciated slightly against the dollar, closing at 86.71 per
dollar. Market dynamics, including dollar demand from importers, have influenced these
currency fluctuations.
Future Projections
The RBI’s ongoing interventions suggest a commitment to maintaining liquidity. Analysts
anticipate further measures as the RBI continues to navigate the complexities of the
banking system’s liquidity needs. The upcoming auction is expected to support shorter-
duration government bonds and may influence the yield curve.[no_toc]
Working Hours and Economic Impact in India
Published On Feb 22, 2025

A working paper titled ‘Time Spent on Employment-Related Activities in India’ was recently
released by the Economic Advisory Council to the Prime Minister. The analysis is based on
the 2019 Time Use Survey conducted by the Ministry of Statistics and Programme
Implementation.
Working Hours Across States
Gujarat, Punjab, Maharashtra, West Bengal, and Kerala are the top five states where over

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70 hours of work per week is common. In Gujarat, 7.2% of the population works these
long hours. In comparison, Bihar has only 1.1% of its workforce in this category.
Nationally, 4.55% of the workforce exceeds 70 hours per week.
Economic Correlation with Working Hours
The report establishes a link between working hours and economic productivity. For larger
states, a 1% increase in working hours correlates with a 3.7% rise in per capita Net State
Domestic Product (NSDP). For smaller states and Union Territories, the increase is 1.8%.
This suggests that longer working hours may contribute to higher economic output.
Variations in Urban and Rural Work Hours
Urban workers generally clock more hours than their rural counterparts. In urban areas,
government employees in Kerala average 6 hours daily, ranking 34th nationally. Daman
and Diu tops the urban working hours chart with nearly 9 hours a day. Rural employees in
Kerala average just under 6 hours daily, slightly below the national average.
Sector-Specific Working Hours
Employees in the service sector tend to work longer than those in goods production.
Regular wage earners also report longer hours compared to self-employed individuals.
This disparity indicates the structural differences in employment types and their demands.
Concerns Over Extended Working Hours
Experts warn against the potential negative effects of extended working hours. The
Economic Survey 2024-25 cautions that exceeding 60 hours weekly can lead to stress and
burnout. High attrition rates and lower profit margins have been observed in companies
promoting a 70+ hour work culture.
The Debate on Work Hours
Recent discussions have emerged regarding the appropriateness of a 70-hour workweek,
sparked by comments from corporate leaders. Critics argue that such proposals ignore
the negative implications for workers’ health and productivity. Developed nations are
moving towards shorter workweeks, advocating for a balance between work and personal
life.[no_toc]
New India Co-operative Bank Crisis and DICGC's Role
Published On Feb 18, 2025

The New India Co-operative Bank in Mumbai faces turmoil following allegations of a Rs
122 crore fraud. The Reserve Bank of India (RBI) has imposed strict restrictions on the
bank. These measures include barring the bank from granting new loans, renewing
existing advances, and accepting new deposits. Furthermore, depositors cannot withdraw
funds for six months from February 13, 2025. Amid this crisis, the Deposit Insurance and
Credit Guarantee Corporation (DICGC) emerges as a vital safety net for depositors.
What is the DICGC?
The DICGC is a subsidiary of the RBI.
It was established to protect depositors in case of bank failures.
The DICGC insures deposits across all banks. This insurance allows depositors to

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recover funds up to a specified limit if their bank faces insolvency or financial

distress.
As of now, depositors can claim up to Rs 5 lakh from the DICGC.
Changes in Deposit Insurance Coverage
Before April 2021, depositors could only claim their insured amount if their bank
entered liquidation.
This left many depositors waiting indefinitely during a moratorium.
However, the 2021 Budget introduced amendments to the DICGC Act.
These changes allow depositors immediate access to insurance coverage up to Rs 5
lakh, even if their bank is under moratorium but not yet liquidated.
This reform provides crucial protection for depositors’ funds, including both principal
and interest.
DICGC’s Role in the Current Crisis
In the case of the New India Co-operative Bank, the DICGC plays a critical role. Around 90
percent of the bank’s 1.3 lakh depositors are fully covered by this insurance scheme.
Despite the withdrawal restrictions, depositors can still use their funds to offset any loans
owed to the bank. The DICGC ensures that each depositor can reclaim up to Rs 5 lakh,
providing a measure of financial security during these challenging times.
Claim Process for Depositors
Depositors must express their intent to claim insurance from the DICGC. Following this,
DICGC verifies the claims. The 2021 amendment to the DICGC Act guarantees that
depositors will receive their funds within 90 days from the start of the claim process. To
enhance transparency, the DICGC introduced Daava Soochak in 2024. This online tool
allows customers to monitor their claim status easily.[no_toc]
Bharat Tex 2025
Published On Feb 17, 2025

Bharat Tex 2025 is global textile event held in New Delhi from February 14 to 17, 2025.
During this event, Prime Minister Narendra Modi announced ambitious targets for India’s
textile exports, aiming to increase from ₹3 lakh crore to ₹9 lakh crore by 2030.
Overview of Bharat Tex 2025
Bharat Tex 2025 is the second edition of an annual exhibition organised by twelve export
promotion councils and supported by the Ministry of Textiles. The event features over
5,000 exhibitors and aims to consolidate India’s textile capabilities on a global platform.
The exhibition spans 2.2 million square feet, showcasing a variety of products from raw
materials to finished goods.
Participation and Global Reach
The event attracted over 6,000 international buyers from more than 110 countries.
Notable countries represented include Japan, the UAE, and the USA. The presence of
global brands and retail chains puts stress on India’s position as a key player in the textile
industry.

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Focus on Sustainability
Sustainability is a core theme of Bharat Tex 2025. The exhibition marks innovations such
as organic fabrics and energy-efficient production technologies. Various projects funded
by the European Union aim to enhance sustainability and promote women’s economic
empowerment within the textile sector.
Conferences and Networking Opportunities
Bharat Tex 2025 features over 70 conference sessions, roundtables, and master classes.
Topics include global trade shifts, technical textiles, and AI-driven manufacturing. The
event provides a platform for policymakers and industry leaders to discuss the future of
textiles and encourage international collaborations.
Technology Integration
An advanced technology platform supports Bharat Tex 2025. The event includes a mobile
application to facilitate engagement and networking among participants. This app allows
users to explore developments in the textile value chain, enhancing the overall experience
for exhibitors and visitors.
EU-India Textile Partnership
At the sidelines, the European Union (EU) and India’s Ministry of Textiles launched seven
new projects to support the textile and handicraft sector.
Funding & Objective
The EU is funding the projects with €9.5 million (₹85.5 crore).
The focus is on sustainability, resource efficiency, women’s empowerment, and
economic growth in the textile industry.
Implementation & Beneficiaries
Projects will run in nine states: Assam, Andhra Pradesh, Telangana, Uttarakhand,
Uttar Pradesh, Odisha, Jharkhand, Bihar, and Haryana.
35,000 direct beneficiaries, including:
15,000 MSMEs
5,000 artisans
15,000 farmer-producers
Expected to economically empower 2 lakh (200,000) women over the next 3 to 5
years.
Alignment with Government Initiatives
Supports India’s “Sustainable Bharat Mission for Textiles.”
Part of the EU’s Global Gateway Strategy, which complements the EU-India Circular
Economy Initiative (co-funded by Germany).
Implemented with India’s Ministry of Environment, Forest, and Climate Change and
executed by GIZ.
Employment & Challenges in India’s Textile Sector
45 million people work in the textile and apparel industry, with 60% being women.
Major challenges:

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High emissions, energy use, water consumption

Low recycling rates
[no_toc]
Key Features of New Income Tax Bill 2025
Published On Feb 14, 2025

The New Income Tax Bill 2025 aims to modernise and simplify India’s income tax
framework. Scheduled to take effect on April 1, 2026, the bill introduces several changes
while maintaining existing tax rates and principles. It focuses on clarity, coherence, and
ease of understanding for taxpayers, addressing long-standing complexities in the current
tax legislation.
Core Principles of the Bill
The bill is guided by three core principles – simplification of language and structure,
continuity in tax policy, and preservation of existing tax rates. These principles ensure that
taxpayers can navigate the tax system with greater ease and predictability.
Introduction of ‘Tax Year’
A notable change is the introduction of the ‘tax year’ concept, replacing the previous
assessment year terminology. This shift aligns with international practices and aims to
reduce confusion surrounding tax periods, making it easier for taxpayers to understand
their obligations.
Structural Improvements
The bill adopts a three-pronged approach to enhance readability. It eliminates complex
language, removes redundant provisions, and reorganises sections logically. This
restructuring reduces the total number of sections from over 800 to 536, improving
navigation through the legislation.
Alignment with Existing Law
Despite its changes, the New Income Tax Bill largely aligns with the Income-tax Act of
1961. It consolidates similar provisions, eliminates obsolete sections, and presents
information in a more accessible format, including the use of tables for tax slabs and
deductions.
Modernisation of Provisions
The bill incorporates modern financial realities, including clear definitions for virtual digital
assets. It also consolidates various tax deductions related to salaries into a single section,
streamlining the filing process for taxpayers.
Taxpayer’s Charter
The Taxpayer’s Charter outlines the rights and responsibilities of taxpayers. This charter
aims to enhance transparency, reduce compliance costs, and ensure equitable treatment
by tax authorities.
Focus on Digital Compliance
The New Income Tax Bill emphasises digital compliance, aiming to streamline tax filing,
dispute resolution, and assessment procedures. This focus on technology is intended to

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reduce litigation risks and improve taxpayer experience.

Anticipated Impact
The bill is expected to encourage a more transparent tax environment, encouraging
compliance and reducing disputes. By simplifying the tax code, the government aims to
enhance taxpayer confidence and promote economic growth.[no_toc]
SEBI Proposes New Guidelines for ESG Rating Providers
Published On Feb 14, 2025

The Securities and Exchange Board of India (SEBI) has recently introduced new guidelines
for Environmental, Social, and Governance (ESG) Rating Providers (ERPs). These measures
aim to enhance transparency and accountability in the ESG rating process. The guidelines
clarify the conditions under which ERPs can withdraw ratings and disclose their rationale.
This initiative reflects the growing importance of ESG factors in investment decisions.
Types of Revenue Models
SEBI categorises ERPs into two revenue models – subscriber-pays and issuer-pays.
Each model has distinct rules regarding rating withdrawals.
The subscriber-pays model allows ERPs to withdraw ratings only if there are no active
subscribers.
In contrast, the issuer-pays model has stricter conditions, requiring a minimum
rating period of three years or halfway through the security’s tenure, along with
approval from 75% of bondholders.
Rating Withdrawals
For the subscriber-pays model, ERPs can withdraw ratings when there are no
subscribers. If a rated entity is part of a package, such as the Nifty 50 index, the
rating remains intact.
The issuer-pays model mandates a longer commitment before withdrawal. This
structure aims to ensure stability and confidence in ESG ratings.
Disclosure Requirements
ERPs are required to share detailed rating rationales with their subscribers only. They
must not publish these reports on their websites. However, ESG ratings must be displayed
in a specified format. This regulation seeks to protect sensitive information while
maintaining a level of transparency.
Stock Exchange Regulations
Stock exchanges must prominently disclose ESG ratings of listed companies. This will be
available under a dedicated section for easy access by investors. Such visibility is intended
to enhance the credibility of ESG ratings in the market.
Internal Audit and Compliance
Category-I ERPs must comply with internal audit requirements immediately.
For Category-II ERPs, these requirements will take effect after two years.
This phased approach considers the operational challenges faced by newer
providers.

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The guidelines also require the formation of ESG Ratings Sub-Committees and
Nomination and Remuneration Committees, with a two-year grace period for
Category-II ERPs.
Differences Between ERP Categories
Category-I ERPs can certify green debt securities and must maintain a liquid net
worth of Rs. 5 crores. They are also required to have at least four employees.
Category-II ERPs, on the other hand, cannot certify green debt securities and only
need a liquid net worth of Rs. 10 lakh. They can operate with just two employees,
allowing for greater flexibility.
Public Feedback and Future Steps
SEBI has invited public comments on these proposed measures until March 6. The
feedback will play important role in finalising the guidelines. The new regulations aim to
strengthen the ESG rating framework, ensuring that it meets both market needs and
investor expectations.[no_toc]
IEA Releases India Gas Market Report
Published On Feb 14, 2025

The International Energy Agency (IEA) recently released the report titled “India Gas Market
Report: Outlook to 203”. It revealed that India’s natural gas demand is expected to grow
by 60% by 2030, reaching 103 billion cubic meters (bcm) annually, making it one of the
world’s largest consumers. After slow growth for over a decade, gas demand grew by over
10% in 2023 and 2024, marking a turning point.
Factors Driving Consumption Growth
Infrastructure expansion (more gas pipelines and CNG stations).
Rising domestic gas production.
Improvement in global gas market conditions.
Heavy industries, particularly iron and steel manufacturing, are also contributors,
collectively adding approximately 15 bcm per year.
Infrastructure Development
India has seen substantial growth in infrastructure related to natural gas. Since 2019, the
number of CNG stations has nearly quadrupled, and residential gas connections have
more than doubled. The transmission pipeline network has expanded by 40 per cent. The
IEA predicts that by 2030, both CNG stations and residential connections will nearly double
again, with the gas transmission grid expanding by an additional 50 per cent.
Domestic Production vs. Imports
Despite the rising demand, domestic production of natural gas is not keeping pace.
In 2023, domestic production met only 50 per cent of the country’s demand.
It is projected to grow gradually to just under 38 bcm by 2030.
In contrast, LNG imports are expected to more than double to around 65 bcm
annually to satisfy the increasing demand.
The IEA reports that LNG imports increased by 10 per cent in 2023 and 2024,

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following a decline in 2022.

Global Market Dynamics
The anticipated increase in India’s gas demand aligns with a global wave of new LNG
supply. However, careful planning and market coordination are essential to ensure supply
security. The gap between contracted LNG supply and projected requirements is expected
to widen after 2028. This situation could leave India vulnerable to the volatility of the spot
LNG market unless additional contracts are secured.
Future Outlook
The IEA’s report suggests that targeted strategies and policy interventions could further
boost gas consumption, potentially reaching around 120 bcm per year by 2030. This
would place India’s gas consumption close to the current levels of the entire continent of
South America. The growth in infrastructure and demand indicates shift towards natural
gas as a primary energy source in India.[no_toc]
Logistics Performance Index, 2023
Published On Feb 14, 2025

Union Shipping Minister Sarbananda Sonowal recently briefed Rajya Sabha about Logistics
Performance Index. India has made strides in its logistics sector, achieving notable
rankings in the World Bank’s Logistics Performance Index (LPI) 2023. The country is now
22nd in the International Shipments category and 38th overall among 139 countries. This
progress shows India’s strides toward increasing logistics efficiency, reducing costs, and
integrating advanced technology into its supply chains.
Factors Contributing to India’s LPI Improvement
India’s rise in the LPI rankings can be attributed to several key factors.
Policy reforms have played important role in streamlining logistics operations.
Initiatives aimed at modernising infrastructure and reducing bottlenecks have
improved the overall logistics framework.
The implementation of technology-driven solutions has also been vital in enhancing
efficiency and transparency.
Turnaround Time at Indian Ports
Indian ports have demonstrated remarkable improvement in turnaround time.
The average turnaround time is now 0.9 days, which is better than that of several
major economies, including the USA at 1.5 days and Australia at 1.7 days.
This improvement reflects the effectiveness of port modernisation and automation
efforts.
Key Government Policies Supporting Logistics Growth
The Government of India has introduced several impactful policies to strengthen the
logistics sector.
The PM GatiShakti National Master Plan focuses on multimodal connectivity, which
aims to integrate various transport networks. This initiative is set to reduce logistics
costs and promote economic growth by 2024-25.

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The National Logistics Policy, launched in September 2022, seeks to enhance last-
mile delivery and overall logistics efficiency.
Technological Advancements in Logistics
Technology has revolutionised India’s logistics landscape. The Logistics Data Bank Project
uses RFID technology to track containers in real-time, reducing delays. The adoption of
automation and artificial intelligence in ports and warehouses has further enhanced cargo
handling efficiency, making logistics operations more streamlined.
Future Vision for India’s Logistics Sector
India’s Maritime Amrit Kaal Vision 2047 outlines long-term aspirations for the logistics
sector. This vision includes expanding port capacity through greenfield and brownfield
developments, promoting sustainability through hydrogen hubs, and enhancing
shipbuilding capabilities.
Investment Commitments and Economic Growth
The Global Maritime India Summit (GMIS) 2023 attracted substantial investment
commitments, amounting to ₹10 lakh crore. This includes 360 Memoranda of About
(MoUs) with an investment commitment of ₹8.35 lakh crore, alongside additional projects
worth ₹1.68 lakh crore. Such investments are expected to further boost India’s logistics
capabilities and economic growth.[no_toc]
NCAER Recommends State-Level Fiscal Councils
Published On Feb 13, 2025

Recent discussions on fiscal governance in India have brought into light the need for
independent fiscal councils at the state level. A research paper by the National Council of
Applied Economic Research (NCAER) has recommended the establishment of these
councils. The aim is to enhance the institutional capacity of states in managing their
finances.
Purpose of Fiscal Councils
Fiscal councils serve to provide independent assessments of state government
forecasts.
They evaluate revenue and expenditure predictions made by the state.
Additionally, these councils generate their own forecasts.
This independent analysis can help identify the scope for realising contingent
liabilities.
International Examples
The European Union (EU) provides a relevant example of fiscal councils in action.
Each EU member state is required to establish its own fiscal council.
The European Commission acts as a quasi-fiscal council at the Union level. This
arrangement allows for better oversight and assessment of member states’
budgetary forecasts.
Historical Recommendations
Various bodies have previously suggested the creation of a fiscal council for India’s

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central government.
The Thirteenth Finance Commission proposed an autonomous body that would
report to the Ministry of Finance.
The Fourteenth Finance Commission also noted the benefits of fiscal councils
globally.
However, the Government of India has rejected these proposals, citing concerns over
the potential limitations on the finance ministry’s powers.
Forensic Analysis of State Finances
The NCAER paper advocates for forensic analyses of states with high debt levels. This
involves identifying specific reasons for revenue shortfalls or expenditure overruns. About
historical financial missteps is crucial for preventing future fiscal issues.
Debt Levels Among States
State debts in India vary. For instance, Punjab’s debt is nearly 50% of its state gross
domestic product (SGDP), while states like Odisha, Maharashtra, and Gujarat maintain
levels below 20%. Over the past decade, larger states have seen their debt-to-SGDP ratios
increase by over 10 percentage points.
Market Discipline and RBI Policies
The NCAER paper suggests that the Reserve Bank of India (RBI) should reconsider its
intervention policies. Currently, the RBI caps spreads on the bonds of heavily indebted
states. Reducing such interventions could enhance market discipline, which is essential for
encouraging fiscal responsibility among states.
Revisiting the Role of Finance Commissions
The paper also calls for a reevaluation of the Finance Commission’s role. It argues that
current allocation methods do not incentivise fiscal prudence. The Commission’s mandate
to allocate more resources to states with larger revenue deficits inadvertently encourages
poor financial management.[no_toc]
NIIF To Raise $2 Billion Private Credit Fund
Published On Feb 13, 2025

The National Investment and Infrastructure Fund (NIIF) is a government-backed initiative

in India aimed at boosting infrastructure investment. Established in 2015, it seeks to
attract international capital for various projects in the country. As of 2025, NIIF is planning
to raise a $2 billion private credit fund, which would be the largest of its kind in India. This
initiative is in early discussions with sovereign investors to secure their participation.
Establishment and Ownership
NIIF is headquartered in Mumbai and operates under the Ministry of Finance.
The fund is 49% owned by the Government of India and 51% by sovereign wealth
and pension funds from across the globe.
Notable investors include Canada’s Ontario Teachers’ Pension Plan, Australia’s
AustralianSuper, the UAE’s Abu Dhabi Investment Authority, and Singapore’s
Temasek.

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Objectives of NIIF
The primary objective of NIIF is to mobilise long-term capital for infrastructure
projects.
It aims to raise funds through various instruments, including offshore credit-
enhanced bonds.
NIIF also seeks to attract anchor investors and provide advisory services for
infrastructure projects.
The fund focuses on both Greenfield and Brownfield projects.
Types of Funds Managed by NIIF
NIIF manages three main types of funds:
Master Fund: Invests in established enterprises with long-term agreements in
regulated environments.
Fund of Funds (FoF): Aims to invest in funds managed by experienced fund
managers, facilitating greater capital accumulation.
Strategic Fund: Primarily invests in equity and equity-linked instruments, registered
as an Alternative Fund II under SEBI regulations.
Investment Strategy and Portfolio Diversification
NIIF’s investment strategy focuses on diversifying its portfolio across different sectors
such as green infrastructure, affordable housing, and healthcare. The fund aims to reduce
risks by investing in various asset classes and industries. The first Fund of Funds received
commitments of $600 million and aims to invest in up to ten private equity funds in India.
Impact on the Indian Economy
NIIF plays important role in channeling international capital into the Indian economy. By
focusing on infrastructure development, it aims to maximise economic growth and
enhance the quality of life for citizens. The fund supports large-scale projects that can
have impact on various sectors.[no_toc]
SEBI Launches MITRA Platform
Published On Feb 13, 2025

The Securities and Exchange Board of India (SEBI) has introduced a new digital platform
named Mutual Fund Investment Tracing and Retrieval Assistant (MITRA). This initiative
aims to assist investors in tracking inactive or unclaimed mutual fund folios. The platform
responds to concerns where investors lose track of their investments due to outdated
contact information or lack of awareness regarding investments made in their name.
Purpose of MITRA
MITRA seeks to empower investors by providing a searchable database of inactive
mutual fund folios.
It encourages individuals to search for forgotten investments and update their Know
Your Customer (KYC) details as per current regulations.
The platform aims to mitigate the risks associated with fraudulent redemptions of
inactive folios.

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Criteria for Inactive Folios

A mutual fund folio is classified as inactive if there are no investor-initiated transactions
for a period of ten years, despite having a unit balance. This classification helps identify
investments that may have been overlooked by the investor.
Role of Qualified RTAs
The platform will be managed by two Qualified Registrars and Transfer Agents (QRTAs),
namely Computer Age Management Services Limited (CAMS) and KFIN Technologies
Limited. These QRTAs are responsible for ensuring compliance with regulations and
maintaining the platform’s integrity.
Awareness and Compliance
SEBI has directed all stakeholders, including Asset Management Companies (AMCs) and
mutual fund distributors, to raise awareness about the MITRA platform among investors.
This initiative aims to reduce the number of non-KYC compliant folios and unclaimed
mutual fund investments.
Impact on Investors
The launch of MITRA is expected to encourage investors to reclaim their forgotten
investments. It also aims to reduce the number of inactive folios, thereby enhancing
investor protection. By making it easier for investors to trace their investments, SEBI
hopes to encourage a more informed and engaged investor community.
Technological Considerations
The QRTAs must ensure the platform complies with guidelines for Business Continuity
Plan (BCP) and Disaster Recovery (DR) as specified by SEBI. This emphasis on technological
compliance ensures that the platform remains secure and accessible to all
investors.[no_toc]
Gross Domestic Knowledge Product (GDKP)
Published On Feb 12, 2025

Recently, the Government of India revived a proposal to measure the Gross Domestic
Knowledge Product (GDKP). This initiative aims to supplement the traditional Gross
Domestic Product (GDP) metric. The Ministry of Statistics and Programme Implementation
(MoSPI) is leading this effort. It seeks to better understand the impact of knowledge-
driven sectors on economic growth.
What is GDKP?
The GDKP concept aims to quantify the contributions of knowledge, innovation, and
intellectual assets to the economy.
It recognises that GDP alone does not fully capture the value generated by
knowledge-based activities.
GDKP is intended to provide a more nuanced understanding of economic dynamics.
Historical Context
The idea was first discussed in 2021 by NITI Aayog.
At that time, concerns were raised about the lack of a clear methodology for data

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collection.
The National Statistical Commission expressed reservations about the subjective
nature of measuring knowledge.
Current Developments
Recently, MoSPI held a session to explore the GDKP measurement framework. Principal
Scientific Advisor Ajay Kumar Sood emphasised the need for a knowledge-centric
approach. MoSPI is now actively working to develop this framework.
Methodological Challenges
No clear method to capture the knowledge economy yet.
Identifying relevant parameters for measurement poses a challenge.
Data availability is another concern.
Knowledge-related data may require surveys and subjective assessments.
Some knowledge-related data is already recorded under GDP, but a structured
approach is needed.
Satellite Account Approach
MoSPI is considering a “satellite account” approach to measure the knowledge economy.
A satellite account is an additional system used to track specific economic activities. This
method is similar to existing satellite accounts for tourism, culture and the ocean/blue
economy. The goal is to create a separate framework that accurately captures the
knowledge base.
Technical Committee Formation
MoSPI plans to establish a technical committee. This committee will evaluate the GDKP
proposal and guide the measurement process. Collaboration with various ministries will
be essential for effective implementation.[no_toc]
India Establishes European Free Trade Association Desk
Published On Feb 11, 2025

India is enhancing its trade relations with the European Free Trade Association (EFTA) by
establishing a dedicated platform. This initiative follows the signing of the Trade and
Economic Partnership Agreement (TEPA) in March 2024. The agreement aims to increase
trade and investment between India and the EFTA member states – Iceland, Liechtenstein,
Norway, and Switzerland. The EFTA desk will facilitate business operations and investment
opportunities between these regions.
What is EFTA?
The European Free Trade Association (EFTA) was founded in 1960.
It includes four member states – Iceland, Liechtenstein, Norway, and Switzerland.
EFTA aims to promote free trade and economic integration among its members and
with global partners.
The organisation manages several trade agreements, including the Agreement on
the European Economic Area (EEA), which links EFTA states with the EU.

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Trade and Economic Partnership Agreement (TEPA)

TEPA was signed to enhance economic ties between India and EFTA.
It is expected to come into effect by the end of 2025.
The agreement includes an investment commitment of $100 billion over 15 years.
It also allows reduced or zero duties on various products, such as Swiss watches and
chocolates.
This deal represents step in India’s trade negotiations.
Investment and Trade Growth
India-EFTA trade reached approximately $24 billion in 2023-24, up from $18.65 billion
in the previous year.
Switzerland is the largest trading partner within the EFTA bloc, contributing to
foreign direct investment (FDI) in India.
Between April 2000 and September 2024, India received $10.72 billion in FDI from
Switzerland.
The trade balance currently favours the EFTA countries.
EFTA Desk Functions
The EFTA desk is designed to support EFTA companies looking to invest in India.
It will provide market insights, regulatory guidance, and business matchmaking
services.
The desk aims to simplify the process of navigating India’s investment landscape.
It will also serve as a centralised support mechanism for encouraging collaboration
between Indian and EFTA businesses.
Business Roundtable Initiatives
A high-level EFTA-India business roundtable will facilitate discussions among over 100
leading businesses. This forum will focus on collaboration in key sectors such as
pharmaceuticals, life sciences, and agritech. The roundtable aims to explore joint
ventures, investment opportunities, and technology partnerships under the TEPA
framework.[no_toc]
Standing Deposit Facility
Published On Feb 11, 2025

The Standing Deposit Facility (SDF) is monetary tool introduced by the Reserve Bank of
India (RBI) to manage liquidity in the banking system. It was established on April 8, 2022,
to absorb excess funds from commercial banks without the need for collateral. This move
came in response to a massive liquidity surplus following extraordinary measures during
the pandemic.
What Is the Standing Deposit Facility?
The SDF allows banks to deposit excess funds with the RBI and earn interest without
receiving government securities in return.
This mechanism is collateral-free.
The SDF serves as a floor for the Liquidity Adjustment Facility (LAF) corridor,

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replacing the reverse repo rate.

Concerns Over Banking Behaviour
Recently, RBI Governor Sanjay Malhotra expressed concern that banks prefer parking
funds in the SDF rather than lending them in the uncollateralised call money market. This
behaviour is problematic as it leads to a higher overnight call money rate compared to the
repo rate. The RBI encourages banks to actively participate in the call money market to
enhance its vibrancy.
Impact on the Call Money Market
If banks redirect funds from the SDF to the call money market, it would lower the
overnight interbank lending rates. This shift is essential for improving liquidity in the
banking system and ensuring that funds are actively circulating rather than being parked.
Operation of the SDF
The SDF operates at a rate that is 25 basis points below the policy repo rate. Banks can
place deposits overnight at this fixed rate. The RBI retains the flexibility to absorb liquidity
for longer tenors under the SDF, depending on market needs.
Future of Reverse Repo Rate
While the SDF has taken precedence, the Fixed Rate Reverse Repo (FRRR) remains a tool in
the RBI’s toolkit. The RBI will decide its operation based on specific needs. The
combination of SDF and FRRR provides the RBI with enhanced flexibility in managing
liquidity.[no_toc]
RBI Introduces Additional Factor Authentication for International Transactions
Published On Feb 08, 2025

The Reserve Bank of India (RBI) has announced enhancement to the security of online
payments. This new measure focuses on cross-border “Card Not Present” (CNP)
transactions. The introduction of Additional Factor of Authentication (AFA) aims to ensure
that international digital transactions using Indian-issued cards are as secure as domestic
ones. This move comes in response to the increasing volume of online shopping and the
associated rise in fraud risks.
About Additional Factor of Authentication (AFA)
AFA is a security process that requires more than one method of verification to
authenticate a transaction.
Previously, AFA was mandated only for domestic transactions.
This additional layer of security typically involves a One-Time Password (OTP) or
biometric verification.
Its implementation has reduced fraud in domestic online payments, encouraging
consumer confidence.
The Need for AFA in International Transactions
With the rise of e-commerce, Indian consumers are increasingly purchasing goods
from overseas merchants.
However, without AFA, these cross-border transactions have remained vulnerable to

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cyber threats.
The absence of physical card verification increases the risk of fraud.
The RBI has recognised this gap and is extending AFA to cover international CNP
transactions, thereby enhancing consumer protection.
Proposed Changes by RBI
The RBI’s proposal will require cardholders to undergo additional verification when
making international purchases. This may include OTPs sent to registered mobile
numbers or biometric checks. The RBI aims to issue a draft circular for stakeholder
feedback shortly. This initiative is part of a broader framework to improve the security of
digital payments in India.
Framework for Digital Payment Security
Last year, the RBI introduced a draft framework to enhance digital payment security.
This framework mandates that all digital transactions, excluding card-present ones,
must use a dynamically generated authentication factor.
This factor is unique to each transaction and cannot be reused.
The framework categorises authentication factors into three types
Something the user knows – Examples include passwords and PINs.
Something the user has – This includes physical devices like ATM cards.
Something the user is – This encompasses biometric identifiers like
fingerprints.
Implications for Indian Consumers
The introduction of AFA for international transactions is expected to provide Indian
consumers with a similar level of security as that offered for domestic transactions. This
measure will likely encourage more consumers to engage in online shopping with
overseas merchants, knowing their payments are safeguarded against fraud.[no_toc]
Negotiated Dealing System-Order Matching (NDS-OM) Platform
Published On Feb 08, 2025

The Reserve Bank of India (RBI) recently announced policy change. Non-bank brokers
registered with the Securities and Exchange Board of India (Sebi) will now have access to
the Negotiated Dealing System-Order Matching (NDS-OM) platform. This initiative aims to
increase retail participation in government securities trading. The RBI’s decision reflects
an ongoing effort to enhance liquidity and accessibility for individual investors in the
financial market.
About the NDS-OM Platform
The NDS-OM is an electronic trading platform managed by the RBI.
It facilitates secondary market transactions in government securities
. Introduced in August 2005, it replaced inefficient telephone-based trading.
The system allows members to place bids and offers anonymously, enhancing
transparency in the market.

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Membership and Participation

Currently, NDS-OM membership is limited to banks, primary dealers, insurance
companies, and mutual funds.
These entities must maintain Subsidiary General Ledger (SGL) accounts with the RBI.
With the new policy, eligible stock brokers can now apply for membership, allowing
them to provide individual clients access to government securities trading.
This change is expected to boost retail investor participation.
Benefits for Retail Investors
The expansion of the NDS-OM platform is designed to enhance liquidity for retail
investors.
By allowing stock brokers to facilitate trades, individual investors can more easily
enter and exit positions in government securities.
Improved liquidity is anticipated to attract greater interest from retail participants,
especially if brokers integrate their trading platforms with NDS-OM.
Regulatory Framework and Compliance
Sebi’s consultation paper from October 2024 proposed a framework for stock brokers to
engage in trading government securities. Brokers must maintain a separate business unit
for these activities, ensuring an arm’s-length relationship with their other operations. They
will also need to establish agreements with members of the Clearing Corporation of India
(CCIL) for transaction settlements.
The Role of the Clearing Corporation of India
The Clearing Corporation of India Ltd. (CCIL) plays important role in the settlement of
trades executed through the NDS-OM platform. It ensures that transactions are processed
efficiently and reduces the reliance on paper-based methods. This modern approach is
essential for maintaining the integrity and efficiency of the trading system.
Future Prospects
The RBI’s move to include non-bank brokers is step towards modernising the Indian
financial market. As retail participation increases, the overall market may become more
vibrant and competitive. The integration of technology in trading processes will likely
continue to evolve, further enhancing the trading landscape for government
securities.[no_toc]
RBI Repo Rate Cut
Published On Feb 08, 2025

The Reserve Bank of India’s decision to cut the repo rate by 25 basis points to 6.25 per
cent marks shift in monetary policy. This is the first reduction in nearly five years. The
move is aimed at stimulating economic activity by making borrowing cheaper. The
Monetary Policy Committee (MPC) unanimously agreed to this measure on February 7,
2025. This decision reflects the RBI’s response to current economic conditions and its
commitment to encouraging growth while managing inflation.

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About Repo Rate

The repo rate is the rate at which the central bank lends money to commercial banks.
A lower repo rate makes borrowing cheaper for banks, which can lead to reduced
interest rates for consumers and businesses.
This encourages spending and investment, which can stimulate economic growth.
Reasons for the Rate Cut
The primary reason for the repo rate cut is to boost economic growth.
The RBI aims to make borrowing more accessible.
As inflation is within the target range, a rate cut supports growth while maintaining
price stability.
The MPC has projected GDP growth of 6.7 per cent and retail inflation at 4.2 per cent
for the fiscal year 2025-26.
Impact on Borrowers and Lenders
The cut in the repo rate will lower equated monthly instalments (EMIs) for home and
personal loans. Banks are expected to reduce their lending rates, making credit more
affordable. This can lead to increased borrowing, spending, and investment. As a result,
job creation may also be supported.
Potential Risks of Lower Rates
While lower interest rates can stimulate growth, they may also lead to higher inflation.
Increased money supply can drive up prices. Additionally, lower rates can reduce the
interest earned on savings, making saving less attractive for individuals.
Economic Growth and Inflation Outlook
The RBI has revised its GDP growth estimate for FY2025 to 6.4 per cent. This is a decrease
from previous projections. Retail inflation is expected to be around 4.2 per cent in
2025-26. The RBI’s flexible inflation targeting approach aims to balance growth and
inflation effectively.
Global Economic Context
The RBI’s decision aligns with global trends where many central banks have adopted
accommodative monetary policies. This shift reflects a broader strategy to support
economic recovery in the face of various challenges.[no_toc]
Bank.in Domain
Published On Feb 08, 2025

The Reserve Bank of India (RBI) has introduced the ‘bank.in’ internet domain to address
increasing financial fraud cases in the country. This initiative was announced during a
recent Monetary Policy Committee meeting led by newly appointed Governor Sanjay
Malhotra. The RBI aims to enhance digital security and improve customer trust in online
banking.
Purpose of the Bank.in Domain
The ‘bank.in’ domain is designed to help users identify legitimate banking websites.
It will assist in distinguishing fraudulent sites from authentic ones.

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This move is a response to the alarming rise in cyber fraud incidents, which
increased by 27% in the first half of the fiscal year.
Role of IDRBT
The Institute for Development and Research in Banking Technology (IDRBT) will
serve as the exclusive registrar for the ‘bank.in’ domain.
Detailed guidelines will be provided to banks for the registration process.
The RBI aims to streamline the domain allocation process and ensure that only
genuine banks can use the ‘bank.in’ extension.
Rise in Banking Fraud Cases
Recent data indicates surge in banking fraud cases. In the first half of the fiscal year, the
total number of fraud incidents rose to 18,461, with financial losses amounting to ₹21,367
crore. This sharp increase puts stress on the urgent need for enhanced security measures
in the banking sector.
Future Plans for Financial Domains
The RBI is also planning to introduce ‘fin.in’ for non-bank financial entities. This will further
enhance security and trust in the financial services sector. The registration for ‘bank.in’ is
set to start in April 2025, with ‘fin.in’ to follow shortly after.
Importance of Cyber Security
Cyber security is a critical concern for the RBI. Governor Malhotra emphasised the need
for banks to develop robust incident response and recovery mechanisms. Regular testing
of these systems is essential for operational resilience against cyber threats.[no_toc]
New Income Tax Bill
Published On Feb 08, 2025

The New Income Tax Bill has been approved by the Union Cabinet led by Prime Minister
Narendra Modi. This bill is set to replace the Income Tax Act of 1961. Its introduction is
expected during the upcoming Budget session in Parliament. The aim is to simplify direct
tax legislation, reduce uncertainties, and minimise legal disputes. Finance Minister
Nirmala Sitharaman has stated that the new bill will present tax laws in a clear and concise
manner.
Objectives of the New Income Tax Bill
The primary goal of the New Income Tax Bill is to make tax legislation more
accessible.
It seeks to simplify the language used in tax laws.
This will help ordinary citizens understand their tax obligations better.
The bill intends to reduce the length of the existing legislation by half, aiming for
clarity and ease of comprehension.
Structure of the Current Income Tax Act
The Income Tax Act of 1961 currently consists of 298 sections divided into 23
chapters.
Over the years, various taxes like wealth tax and gift tax have been removed.

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The Act has undergone numerous amendments, making it increasingly complex.

The new legislation aims to eliminate outdated sections and present a streamlined
version of the tax code.
Need for Modernisation
The current Income Tax Act was established in a different era, reflecting the
economic conditions of the early years of India’s republic.
Since then, changes in society and technology have occurred.
The existing law has become convoluted due to continuous amendments.
A comprehensive review is necessary to align the tax system with modern practices,
including digital filing and data integration.
Revenue Neutrality of the New Bill
The New Income Tax Bill is designed to be revenue-neutral.
This means that it will not impose a higher tax burden on citizens.
The focus will be on simplifying compliance and clarifying tax obligations rather than
changing tax rates.
Any adjustments to tax rates will continue to occur through the annual Finance Act.
Expected Benefits for Taxpayers
Taxpayers can expect clearer guidelines and a more straightforward filing process.
The bill aims to lower the number of disputed tax demands.
By reducing the complexity of the tax code, the government hopes to encourage a
better understanding of tax responsibilities among citizens.
This should lead to increased compliance and fewer legal disputes.
[no_toc]
RBI's Monetary Policy and Rate Cut Expectations
Published On Feb 06, 2025

The Reserve Bank of India (RBI) is currently navigating a complex economic landscape.
Recent analysis suggests that the RBI’s monetary policy committee (MPC) may not deliver
the expected surprises in rate cuts. Historically, the RBI has often surprised the market
with larger than anticipated cuts. However, the current environment indicates a more
cautious approach.
Historical Context of RBI Rate Cuts
The RBI has a history of surprising the market with its rate cuts.
In 2012, it made an unexpected cut which was later deemed a policy mistake.
In 2015, a surprise inter-meeting cut caught many off guard.
Again in 2019, the new governor initiated a surprise reduction, reversing a hawkish
stance.
Each instance had unique circumstances that influenced the decisions.
Current Market Expectations
Nomura India predicts a 25 basis points (bps) cut in the upcoming MPC meeting. The new
governor, Sanjay Malhotra, is expected to lead a unanimous vote. The consensus leans

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towards a cautious approach, with many expecting no drastic changes to the cash reserve
ratio (CRR). Some market participants still hold out for a more aggressive stance.
Potential Strategies for Dovish Surprises
There are three primary strategies the RBI could employ to surprise the market:
Larger Rate Cuts: Some expect a 50 bps cut, arguing the RBI has lagged in its
response to economic conditions.
Change in Policy Stance: A shift from ‘neutral’ to ‘accommodative’ would signal
openness to further cuts, indicating a deeper monetary easing cycle.
Permanent CRR Reduction: A cut in the CRR could inject substantial liquidity into
the market, although this is less likely given recent measures.
Economic Conditions and RBI’s Approach
Nomura suggests that the RBI’s focus has shifted towards supporting growth, becoming
more tolerant of forex depreciation. The global economic backdrop remains fluid,
prompting the RBI to adopt a cautious stance. The bank is likely to continue with open
market operations (OMOs) and buy-sell swaps rather than implementing further CRR cuts.
Implications for Future Monetary Policy
The RBI’s decisions will be closely watched as they will impact liquidity and economic
growth. While the current consensus expects a measured approach, any unexpected
moves could alter market dynamics. The RBI’s historical context and current expectations
set the stage for a potentially very important moment in Indian monetary policy.[no_toc]
Import Duty Waiver on Life-Saving Drugs
Published On Feb 06, 2025

The Union Budget 2025 introduced changes to import duties on life-saving drugs. The
government has waived import duties on 36 essential medications and reduced it for an
additional six. This initiative aims to make critical treatments more affordable for patients
in India. Despite the reduction in costs, most imported drugs remain under patent
protection, keeping them expensive.
Changes in Import Duties
The basic customs duty on life-saving medicines is set at 5%.
The 2025 Budget now exempts 36 drugs used for cancer and rare diseases from any
import duty.
Additionally, the import duty for six other life-saving drugs has been reduced to 5%
from 7.5%.
Another 37 drugs under patient assistance programs are also exempted from the
duty.
This policy supports patients reliant on imported medications for severe medical
conditions.
Goods and Services Tax on Medicines
All finished formulations of medicines attract a GST of 12%. However, specific medicines
for critically ill patients are taxed at a reduced rate of 5%. This tax structure aims to

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balance revenue generation with the need for affordable healthcare.

Impact on Patients
More than 97% of medicines sold in India are off-patented and manufactured locally. Only
about 3% are patented drugs, primarily imported. The reduction in import duties is
expected to make these critical medications more affordable without negatively impacting
the domestic pharmaceutical industry.
Domestic Pharmaceutical Landscape
India, known as the world’s pharmacy, is the third-largest manufacturer of medicines. It
produces nearly all dosage forms and off-patented drugs. Indian pharmaceuticals are
renowned for being cost-effective. A global study indicates that Indian-made medicines
are over 52% cheaper than international prices. This has sparked increased interest in
drug research and innovation within the Indian pharmaceutical sector.
Price Regulation on Imported Drugs
All medicines sold in India, including imports, fall under the Drugs Price Control Order
(DPCO). This regulation ensures that essential medicines, listed in the National List of
Essential Medicines (NLEM), have fixed retail prices set by the National Pharmaceutical
Pricing Authority (NPPA). The DPCO aims to balance industry needs with patient
affordability while also calling for procedural simplifications.
Government Initiatives for Affordable Medicines
The Government of India, alongside regulators and the pharmaceutical industry, is
committed to ensuring affordable healthcare. Initiatives like the Pradhan Mantri Jan
Aushadhi Pariyojna and Ayushman Bharat aim to enhance access to affordable medicines.
Patient assistance programs by drug manufacturers and charitable organisations further
contribute to this goal.[no_toc]
Basalt Mining Begins at Deocha-Pachami
Published On Feb 06, 2025

The West Bengal government is set to commence basalt mining on 326 acres at the
Deocha-Pachami coal mine in Birbhum district. This initiative aligns with the Bengal Global
Business Summit (BGBS). The project aims to attract investors while addressing local
employment concerns ahead of the 2026 elections.
Project Overview
The Deocha-Pachami coal mine is Asia’s second largest coal mine.
Mining basalt is crucial as it covers the coal reserves beneath.
Expected reserves: 1,240 million tonnes (MT) of coal and 675 MT of basalt.
The thickness of basalt in this area ranges from 100 to 350 meters.
The state government has received all necessary environmental clearances to begin
operations.
Mining Operations
Mining operations will start with the removal of the basalt layer. The initial phase will
occur on 326 acres due to land procurement issues. The government plans to acquire an

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additional 50 acres within six months. Open-cast mining techniques are planned, with
completion expected in over a year.
Economic Impact
The mining operation is projected to generate substantial revenue. The agency
responsible for mining will share 71.5% of the revenue with the state government.
Expected earnings from basalt are around ₹5,000 crore, driven by high demand in
construction.
State-Level Investment Synergy Committee
A new committee has been set up to streamline investment-related approvals.
It will address issues related to land, fire safety, finance, MSME, housing, agriculture,
and industry.
Headed by the Chief Secretary and will meet fortnightly for timely decision-making.
Political Context
The timing of this project is strategic. The Bengal government aims to showcase progress
at the Bengal Global Business Summit (BGBS) 2024 to attract investments. The initiative is
seen as a response to criticism regarding employment opportunities in the state.
Successful investment could boost the ruling party’s position ahead of upcoming
elections.
Challenges and Future Prospects
The Deocha-Pachami project faces challenges, including delays in land acquisition for the
full operational area. Additionally, two other major projects in the region have not
progressed as planned. The government is relying on this mining project to fulfil its
economic and employment objectives.
State-Level Investment Synergy Committee
A new committee has been set up to streamline investment-related approvals.
It will address issues related to land, fire safety, finance, MSME, housing, agriculture,
and industry.
Headed by the Chief Secretary and will meet fortnightly for timely decision-making.
[no_toc]
Ukraine's Rare Earths
Published On Feb 06, 2025

Ukraine’s geopolitical landscape has transformed dramatically due to ongoing conflict

with Russia. Amidst this turmoil, Ukraine’s rich deposits of rare earths and other critical
minerals have gained attention from global powers, particularly the United States. These
resources are vital for various industries, including defence, technology, and renewable
energy.
Ukraine’s Mineral Resources Overview
Ukraine is often referred to as the “bread basket of Europe” due to its fertile land.
However, it also possesses mineral wealth.
The country is home to 22 of the 34 minerals identified by the European Union as

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critical.
Notable among these are rare earth elements such as lanthanum, cerium,
neodymium, erbium, and yttrium.
These elements are essential for manufacturing electronics, renewable energy
technologies, and defence systems.
Importance of Rare Earth Elements
Rare earth elements are a group of 17 metals crucial for modern technology.
They are used in electric vehicles, smartphones, and military applications.
For instance, neodymium is vital for wind turbines and electric vehicle batteries.
Ukraine’s reserves include quantities of titanium, lithium, and graphite, which are
increasingly important in the global shift towards green energy.
Current Control of Resources
The ongoing war has severely impacted Ukraine’s ability to exploit its mineral resources.
Approximately 40% of the country’s metal resources are currently under Russian
occupation. Key coal deposits, necessary for steel production, are largely lost. However,
Ukraine still retains control over lithium deposits in the central Kyrovohrad region and
some other critical minerals.
Challenges in the Mining Sector
Despite its rich mineral resources, Ukraine faces challenges in attracting investment.
Issues include complex regulatory processes and difficulties accessing geological data.
Investors also cite the need for substantial upfront capital and time to develop mining
projects. Nevertheless, the government estimates an investment potential of $12-15
billion in the mining sector by 2033.
Opportunities for International Collaboration
Ukraine is actively seeking partnerships with Western allies to develop its mineral
resources. The government is negotiating deals with countries such as the United States,
Britain, France, and Italy. These collaborations aim to exploit the country’s critical
materials while boosting its economy amid ongoing conflict.[no_toc]
China's Counter Tariffs Against the US
Published On Feb 05, 2025

On February 4, 2025, China announced new counter tariffs against the United States in
response to recent tariff hikes imposed by the U.S. government. These tariffs include a
15% levy on coal and liquefied natural gas, and a 10% tariff on crude oil, agricultural
machinery, and large-displacement cars. The Chinese government labelled the U.S.
actions as a violation of World Trade Organization (WTO) rules, asserting that they disrupt
normal trade relations.
US-China Trade War
The trade war between China and the United States escalated when President
Donald Trump imposed additional tariffs on Chinese goods.
This measure aimed to penalise China for failing to curb illegal drug and migrant

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flows into the U.S.

The situation has rekindled tensions reminiscent of previous trade wars, with both
nations seeking to assert their economic interests.
Antitrust Investigation of Google
Alongside the tariff announcement, China initiated an investigation into Google for
potential antitrust violations. This move indicates a broader scrutiny of U.S. tech
companies operating in China. Google’s services have been largely unavailable in China
since 2010, yet the company continues to maintain a presence for advertising purposes.
Market Reactions
The initial market reactions were subdued. Analysts noted that China’s response was
“measured and appropriate,” allowing Beijing to signal its discontent without escalating
the conflict further. The U.S. dollar rebounded, while the offshore yuan weakened.
Countries with strong trade ties to China, like Australia and New Zealand, experienced
currency declines.
Strategic Implications
China’s response appears calculated to avoid economic disruption while still
demonstrating its capacity to retaliate. By targeting specific sectors like energy and
technology, China aims to inflict strategic damage on U.S. companies reliant on its market.
The situation puts stress on the fragility of U.S.-China relations, which had shown signs of
stabilisation after high-level talks in late 2023.
Global Economic Context
The ongoing trade conflict has broader implications for global trade dynamics. The U.S.
and China are two of the world’s largest economies, and their actions can influence global
markets. The tariffs and investigations may lead to increased tensions and uncertainty in
international trade, affecting various sectors globally.[no_toc]
U.S. Sovereign Wealth Fund Proposal for TikTok Purchase
Published On Feb 04, 2025

The recent announcement by U.S. President Donald Trump regarding the establishment
of a sovereign wealth fund has garnered attention. This fund aims to monetise U.S. assets
and may include the acquisition of the popular social media platform TikTok. The initiative
reflects a broader trend in government investment strategies and the evolving landscape
of digital assets.
What Is a Sovereign Wealth Fund?
A sovereign wealth fund (SWF) is a state-owned investment fund. It is typically formed
from surplus revenues generated by the government. This can include income from
natural resources, trade surpluses, and other financial gains. SWFs aim to benefit the
economy and citizens by investing in various assets.
Sources of Funding for SWFs
Funding for sovereign wealth funds can come from multiple sources. Common sources
include surplus reserves from natural resources, trade surpluses, and excess bank

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reserves. These funds may also arise from privatisation proceeds and governmental
transfers. The specific source often defines the fund’s purpose and investment strategy.
Types of Sovereign Wealth Funds
SWFs can be classified into several categories. Stabilisation funds are designed to
counteract economic volatility. Savings or future generation funds aim to provide for
future citizens. Public benefit pension reserve funds focus on retirement benefits.
Strategic Development Sovereign Wealth Funds target specific industries for growth.
Investment Strategies and Objectives
Each sovereign wealth fund has distinct investment objectives and strategies. These can
range from conservative to aggressive risk management. Some funds prioritise liquidity
while others focus on high returns. The investment preferences often depend on the
fund’s purpose and the economic context.
Political Influence and Transparency Issues
Sovereign wealth funds can wield political influence due to their substantial financial
resources. However, concerns arise regarding their transparency and governance
practices. Many prominent SWFs do not disclose detailed information about their
investments, leading to calls for greater accountability.
The TikTok Acquisition Context
The move to potentially acquire TikTok marks the intersection of digital assets and
government interests. With approximately 170 million users in the U.S., TikTok represents
digital asset. The proposed fund aims to leverage such assets for national benefits,
marking a shift in how governments approach technology and investment.[no_toc]
Indian Railways' Mission 3000
Published On Feb 04, 2025

Indian Railways is striving to enhance its freight loading capabilities under the ambitious
Mission 3000 plan. This initiative aims to achieve a cargo volume of 3,000 million tonnes
(MT) by 2030. Despite facing criticism for its slow progress, Union Railways Minister
Ashwini Vaishnaw remains optimistic about meeting the targets. The ministry anticipates
increases in freight volumes through various infrastructure projects.
Current Freight Performance
Indian Railways is projected to surpass 1,600 MT of cargo for the first time this financial
year. However, it needs to nearly double its output within five years to meet the Mission
3000 target. The government has revised its freight loading estimates, now set at 1,635
MT for the current year and 1,700 MT for 2025-26. This reflects a mere 2.9% growth in
freight for the current financial year.
Infrastructure Development
Key projects like the Sonnagar-Andal quadrupling project are expected to boost cargo
capacity. The government has allocated over ₹2,500 crore for Delhi’s railway infrastructure
in the FY26 budget. Additionally, the introduction of hydrogen trains and Namo Bharat
trains aims to modernise the fleet.

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Market Share Challenges

Historically, Indian Railways held a dominant 85% market share in logistics in 1950-51.
However, this has now decreased to 27% as road transport has gained popularity. If the
current growth trend continues, railways could see its market share drop to 22% by FY30.
Recommendations for Growth
The internal report Mission 3000 MT suggests expanding the network, increasing rolling
stock, and reducing cargo tariffs by up to 30% by 2026-27. The report aims to enhance the
average cargo speed from 24 km/h to 50 km/h and increase container movement market
share from 16% to 32%.
Environmental Considerations
The shift to rail transport is also driven by environmental concerns. Road freight
contributes to carbon emissions. Increasing rail freight share is expected to lower logistics
costs and reduce CO2 emissions, benefiting the environment.
Strategic Interventions Needed
To achieve its targets, Indian Railways must implement strategic interventions. These
include improving customer service, enhancing reliability, and diversifying the freight
commodity basket. Currently, coal, iron ore, and food grains dominate the freight volume.
Financial Resources and Policy Reforms
The total capital expenditure required for infrastructure improvements is estimated at
₹8.5 lakh crore. The report calls for five policy interventions to enhance competitiveness.
This includes improving containerisation and attracting more automobile traffic to
railways.
Future Growth Projections
To reach the 3,000 MT target, Indian Railways must achieve a compound annual growth
rate (CAGR) of 16.2%. This requires departure from past growth rates, which averaged
4.1% over the last decade.[no_toc]
OPEC+ Maintains Oil Output Policy Amid Global Tensions
Published On Feb 04, 2025

OPEC+ has reaffirmed its strategy to gradually increase oil production starting from April
2025. This decision comes amid ongoing geopolitical tensions and fluctuating oil prices.
The group has also opted to replace the U.S. Energy Information Administration (EIA) with
new firms for monitoring its production metrics.
About OPEC+
OPEC+ consists of 22 oil-exporting nations, including the original 12 OPEC members
and several non-OPEC countries.
Its primary objective is to regulate oil production to ensure market stability.
The group originated in late 2016 to encourage collaboration between OPEC and
non-OPEC producers.
Recent Decisions
During a recent online meeting, OPEC+ ministers decided to maintain their output

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increase plan.
The group will unwind a previous cut of 2.2 million barrels per day (bpd) starting in
April, with an initial monthly rise of 138,000 bpd.
This decision reflects ongoing concerns about weak demand and rising supply from
non-member countries.
Changes in Monitoring Sources
OPEC+ has removed the EIA from its list of secondary sources used to monitor production.
New firms Kpler, OilX, and ESAI will replace it. This shift is attributed to communication
issues rather than political motivations. The change aims to enhance the accuracy of
production assessments.
Geopolitical Context
The backdrop of this decision includes the impact of U.S. sanctions on Russian oil supplies
and the influence of President Donald Trump. Trump has previously urged OPEC to
increase production to lower oil prices, which he claims benefits Russia amid its ongoing
conflict in Ukraine.
Current Market Dynamics
Oil prices have experienced volatility, reaching $83 per barrel in January before falling
below $77. This fluctuation is influenced by concerns over supply disruptions due to tariffs
imposed by the U.S. on key trading partners. These tariffs have contributed to market
uncertainty and affected oil price stability.
OPEC’s Historical Context
OPEC was established in 1960 by five founding members – Iran, Iraq, Kuwait, Saudi Arabia,
and Venezuela. The organisation has since expanded to include additional members. Its
headquarters is located in Vienna, Austria. OPEC’s formation aimed to coordinate policies
among oil-exporting nations to secure fair prices and stable supply.
About Brent Oil
Brent oil is benchmark for global oil prices. It is characterised as a light, sweet crude oil
extracted from North Sea fields. Its low density and sulphur content make it easier to
refine into products like gasoline. The water-borne nature of Brent oil facilitates its
transportation to international markets.[no_toc]
Indian Rupee Hits All-Time Low
Published On Feb 04, 2025

The Indian rupee recently fell to an unprecedented low of 87.29 against the US dollar. This
decline occurred on February 3, 2025, amidst rising fears of a global trade war triggered
by US tariffs on imports from Canada, Mexico, and China. The dollar index surged over
1%, reflecting the strengthening of the US dollar against a basket of currencies.
Factors Behind the Rupee’s Depreciation
The depreciation of the rupee can be attributed to several key factors:
The imposition of tariffs by the US on multiple countries raised concerns about a
global trade conflict.

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Robust US jobs data and expectations of increased interest rates boosted the dollar’s
value.
Rising treasury yields have made dollar forward positions more attractive to
investors.
Impact of Foreign Institutional Investors
Foreign institutional investors (FIIs) have been net sellers in the Indian market,
contributing to the rupee’s decline. In the third quarter of FY25, FIIs sold approximately
$11 billion. This outflow of capital has intensified pressure on the rupee. The widening
trade deficit, which reached $188 billion, further exacerbates the situation, indicating a
growing imbalance in trade.
Consequences of a Weakening Rupee
A weaker rupee has mixed effects on the Indian economy:
Negative Effects:
It increases the cost of imports, particularly crude oil, leading to higher inflation.
Companies with foreign debt face increased costs, which can impede investment.
Consumer sentiment may also decline due to reduced purchasing power.
Positive Effects:
Adepreciated rupee can enhance the competitiveness of Indian exports, benefiting
sectors such as IT and pharmaceuticals
Indians living abroad can send more valuable remittances back home, which can
support the economy, especially in regions reliant on these funds.
The Reserve Bank of India’s Dilemma
The Reserve Bank of India (RBI) faces a challenging situation. It must balance growth,
inflation, and currency stability. While the RBI appears to favour a free-floating rupee in
response to market conditions, the question remains whether India can sustain this
approach. Analysts suggest that the RBI may consider a rate cut to address the prevailing
economic pressures, particularly if the currency remains concern.
Future Outlook
The outlook for the rupee remains uncertain. Analysts predict that if the rupee depreciates
further, it could reach levels that may impact economic stability. The RBI’s upcoming
monetary policy meeting will be crucial in determining the future direction of the rupee
and the broader economic landscape.[no_toc]
US Imposes Tariffs
Published On Feb 03, 2025

Recently, the US President Trump imposed a 25% tariff on Canada and Mexico and a 10%
tariff on China, which affects the US’s top three trade partners. This is part of his
protectionist trade policies, aimed at reducing the US’s $1 trillion trade deficit.
About Trade War
A trade war is an economic conflict where countries impose tariffs or restrictions on
each other’s imports in response to perceived unfair trade practices.

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They can be used to protest against a country’s policies or to protect domestic

industries from foreign competition.
If a country cannot produce enough goods domestically, imposing high tariffs on
imports can backfire, making essential goods more expensive for citizens.
Why did US impose tariffs?
It sought to curb the flow of drugs and undocumented immigrants into the US.
The tariffs are expected to risk increasing prices for American consumers across an
array of goods such as sneakers, avocados and cars.
Retaliatory Responses
Canada, Mexico and China are the US’ largest trading partners. They account for one-
third of all US imports.
Canada responded with a 25% retaliatory tariff on US-made products
Mexico announced its intention to take a similar step.
China is also expected to impose retaliatory tariffs
US Trade Deficit
China contributes the most (30%) to the US trade deficit, followed by Mexico (19%) and
Canada (14.5%). India is the ninth-largest contributor, making up 3.2% of the US trade
deficit
India’s Tariffs
India has started reducing tariffs on products mostly exported by the US, like motorcycles
and satellite parts, to avoid being affected by US tariffs. These changes were made in
India’s Union Budget for 2025-26.
Key Indian Exports to the US
India has a trade surplus in pharmaceutical products, gems and jewellery, and seafood. If
US tariffs target high-value items, these sectors may be affected.[no_toc]
Union Budget 2025
Published On Feb 03, 2025

The Union Budget for 2025-26 was presented by Finance Minister Nirmala Sitharaman on
February 1, 2025. This budget aims to drive economic growth through four primary
engines – agriculture, micro, small and medium enterprises (MSMEs), investments, and
exports. The government has prioritised reforms across various sectors, focusing on
inclusivity and sustainable development, with the ultimate goal of achieving a Viksit
Bharat (Developed India) by 2047.
Agriculture Initiatives
The budget emphasises enhancing agricultural productivity and self-sufficiency. Key
initiatives include:
Self-Sufficiency in Pulses: A 6-year ‘Mission for Aatmanirbharta (self-reliance) in
Pulses’ was announced, with a special emphasis on tur/arhar (pigeonpea), urad (black
gram) and masoor (red lentil).
Boost to Makhana Cultivation: Bihar to get a Makhana Board, with FPOs (Farmer

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Producer Organizations) helping 10 lakh people involved in the industry. It will help
boost the production, processing and marketing of makhana (fox nuts).
‘Rural Prosperity and Resilience’ program to provide skill training, investments,
and technology for better rural job opportunities. It will be launched in collaboration
with states.
High-Yielding Seeds Mission:
Research & development of high-yield, pest-resistant, and climate-resilient
seeds.
Commercial availability of 100+ new seed varieties developed since July 2024.
Mission for Cotton Productivity: A 5-year plan to support cotton farmers in
achieving sustainability and productivity. It will also help promote extra-long staple
(ELS) cotton varieties.
Fisheries Development: Sustainable fishing projects, especially in Andaman &
Nicobar and Lakshadweep.
India Post as a Rural Economy Catalyst: India Post & India Post Payments Bank to
become a major logistics network.
Kisan Credit Card (KCC) Loan Limit Increased: From ₹3 lakh to ₹5 lakh under the
Modified Interest Subvention Scheme.
New Scheme: PM Dhan Dhanya Krishi Yojana (PMDDKY):
The Scheme combines existing farming schemes and work together with State
governments.
It will focus on 100 districts that have low farm output, average crop variety,
and below-average farming conditions.
Objectives include:
1. Increase farm production
2. Encourage farmers to grow different crops using eco-friendly methods
3. Improve storage facilities for crops at the village and district level
4. Enhance irrigation systems
5. Make loans easily available for farmers
This program is expected to benefit 1.7 crore farmers across India.
New Urea Plant in Assam: Annual production capacity of 12.7 lakh tonnes. This will
be the 7th new urea plant since 2019.
Support for MSMEs
Higher Investment & Turnover Limits: MSME classification investment & turnover
limits increased to 2.5 and 2 times respectively.
Credit Access Enhanced:
1. Micro & Small Enterprises: Credit guarantee increased from ₹5 crore to ₹10
crore.
2. Startups: Guarantee increased from ₹10 crore to ₹20 crore.
3. Exporter MSMEs: Term loans up to ₹20 crore.

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Customized Credit Cards: MSMEs to get ₹5 lakh Udyam credit cards (10 lakh cards
in first year).
Startup Fund of Funds Expanded:
1. Additional ₹10,000 crore
2. Govt-backed Alternate Investment Funds (AIFs) have committed ₹91,000
crore to startups.
New Scheme for Women, SC/ST Entrepreneurs: ₹2 crore term loans for first-time
business owners.
National Action Plan for Toys: ‘Make in India’ focus to make India a global toy hub.
National Manufacturing Mission:
1. Make in India support for MSMEs & large enterprises.
2. Focus on clean tech manufacturing (solar panels, EV batteries, wind turbines,
etc.).
3. The mission will also help reduce China’s strong control over clean technology.
Right now, China makes 80% of the world’s batteries and produces 80% of the
key parts needed for solar cells.
Investments
Jal Jeevan Mission Extended: 100% water supply coverage till 2028.
Urban Challenge Fund:
₹1 lakh crore fund to improve cities.
Covers ‘Cities as Growth Hubs’, Creative Redevelopment, Water & Sanitation.
Nuclear Energy Mission:
Develop at least 100 GW of nuclear capacity by 2047.
Encourage private companies to invest in nuclear energy by changing laws like
the Atomic Energy Act and the Civil Liability for Nuclear Damage Act.
Launch at least five small modular reactors (SMRs) by 2033. These are compact,
safer, and will help in expanding nuclear power generation.
Shipbuilding Development:
Revised Shipbuilding Financial Assistance Policy will provide subsidies for ships
built in India from 2024 to 2034. The government has set aside about ₹18,000
crore for this, and the subsidy will be based on either the agreed price or the
fair value of the ship.
The ₹25,000 crore Maritime Development Fund will offer long-term, low-cost
financial support for building ships in India and other ocean-related projects.
Shipbuilding Clusters to improve technology & infrastructure.
Regional Air Connectivity (UDAN Scheme):
120 new destinations.
Helipads & small airports for hilly & North East regions.
Deep Tech Fund of Funds:
Investments in next-gen startups.

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10,000 PM Research Fellowships in IITs/IISc.

National Geospatial Mission:
Digital mapping infrastructure for better planning & governance.
Gyan Bharatam Mission:
It supports the digitization & preservation of Indian manuscripts.
To support this new initiative, the government has increased the budget for the
National Manuscripts Mission (NMM) from ₹3.5 crore to ₹60 crore.
Export Promotion
Exports
Export Promotion Mission:
₹2,250 crore allocated to boost exports.
Support for export credit, cross-border factoring, and easing non-tariff
measures for MSMEs.
Commerce, MSME, and Finance Ministries will jointly drive this initiative.
BharatTradeNet:
A unified digital platform for trade documentation & finance.
It will be developed in line with the international best practices to ensure ease
of doing businesses
GCC National Framework
National Framework was announced for creating Global Capability Centres
(GCCs) in emerging Tier-II cities.
It will focus on improving talent availability, infrastructure, and collaboration
with industries to attract more back-office operations outside metro cities like
Bengaluru and NCR.
India currently has over 1,700 GCCs, which make up 17% of such centres
worldwide. Majority of these centres are located in large cities, employing
around 1.9 million professionals.
Better Air Cargo Infrastructure:
Faster customs clearance for perishable goods.
Tax Reforms
Taxpayers
Income Tax Exemption: No tax on income up to ₹12 lakh. With a standard
deduction, salaried individuals can remain tax-free up to ₹12.75 lakh.
Rebate and Tax Savings: A rebate of ₹60,000 and changes in tax slabs could result
in savings of up to ₹1.1 lakh.
Extended Filing for Returns: Updated tax returns can be filed up to 48 months from
the end of the assessment year.
No Deemed Rent for Two Self-Occupied Homes: There will be no deemed rent for
two self-occupied house properties.
Increased Threshold for TCS: The threshold for Tax Collected at Source (TCS) on

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overseas remittances has been raised to ₹10 lakh. No TCS will be applied on
remittances for education from loans.
TDS on Rent: Tax Deducted at Source (TDS) on house rent will apply only for rents
above ₹6 lakh a year, compared to the earlier ₹2.4 lakh.
Tax Exemption for Senior Citizens: Withdrawals from National Small Savings (NSS)
accounts by senior citizens after August 29, 2024, will be tax-exempt.
Additional Tax on Updated Returns: If updated returns are filed after 24 months
and up to 36 months, an additional tax of 60% on the total tax and interest will be
applicable. After 36 months, it will be 70% with interest.
Investors
NPS Deduction: Payments to the NPS Vatsalya scheme will be eligible for a ₹50,000
deduction, similar to the NPS scheme under the old tax regime.
TDS on Bank Interest for Senior Citizens: TDS on bank interest for senior citizens
will apply only if it exceeds ₹1 lakh. For others, the threshold is increased to ₹50,000.
TDS on Dividend Income: TDS on dividend income will apply if the income exceeds
₹10,000.
Consumers
Customs Duty on Life-saving Drugs: No basic customs duty on 36 life-saving drugs
for cancer and rare diseases. Customs duty is also exempted on 37 more medicines
and 13 patient assistance programs, provided they are given free to patients.
Reduced Customs Duty: Basic customs duty (BCD) on goods imported for personal
use has been reduced from 38.5% to 20%. Duty on imported jewelry articles has
been reduced from 25% to 20%.
Lower Customs Duty on Furniture: Customs duty on the import of furniture,
mattresses, and bedding articles has been reduced from 27.5% to 25%.
Business People
Startups: Startups incorporated before April 1, 2030, will get a 10-year tax holiday. A
₹10,000 crore fund of funds will support startups.
TDS on Sale of Goods: Only 0.1% TDS on the sale of goods exceeding ₹50 lakh. No
Tax Collected at Source (TCS).
Decriminalization of TCS Default: TCS payment defaults will no longer be a criminal
offense.
Reduced Duty on Components for EVs and Phones: Basic customs duty on
components used to make LCD/LED panels and capital goods for EV and mobile
phone batteries has been reduced.
Scheme for Non-Leather Footwear and Leather Products: A scheme will support
manufacturing capacity, component production, and machinery for non-leather
footwear and leather products.
Provisional Assessments: The time limit for finalizing provisional assessments of
import/export bills will be two years, extendable by another year.

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Voluntary Declaration for Tax: Importers and exporters can voluntarily declare
facts and pay tax without penalty after clearing goods.
Loss Carry Forward for Amalgamated Companies: Amalgamated companies can
carry forward losses only for 8 years.
Upfront Payment for Penalty Appeals: Businesses must deposit 10% of the penalty
upfront when appealing to the appellate commissioner.
Social Sector Allocation
Education Budget: The education sector received ₹1.28 lakh crore in the 2025-26
Budget, an increase from ₹1.14 lakh crore in revised estimates for 2024-25. This is
part of a consistent rise in education spending from ₹97,000 crore in 2022-23.
Rural Development: The allocation for rural development increased to ₹2.66 lakh
crore in 2025-26, compared to ₹2.65 lakh crore in Budget estimates for 2024-25 and
₹1.90 lakh crore in revised estimates for 2024-25.
Health Budget: Health allocation increased to ₹98,311 crore in 2025-26, up from
₹88,032 crore in revised estimates for 2024-25. It was ₹89,287 crore in Budget
estimates for 2024-25.
Social Services Expenditure Growth: Social services expenditure (SSE) has been
increasing over the years. It rose from 23.3% of total government expenditure in
FY21 to 26.2% in FY25. In FY24, SSE increased by 21%, and in FY25, it grew by another
10%. Over five years from FY21 to FY25, SSE grew at a Compound Annual Growth
Rate (CAGR) of 15%.
Total Social Sector Spending: The total social sector spending by central and state
governments was ₹14.8 lakh crore in FY21. It is expected to rise to ₹25.7 lakh crore in
FY25.
Challenges
1. Implementation Gaps: Despite rising allocations, there are significant gaps
between budget estimates and revised estimates, showing the need for better
implementation and improved absorption capacities.
2. Education Funding: Even though the education budget has increased, the
funding for education remains around 2.7-2.9% of GDP, which is lower than the
global benchmark of 4-6% set by UNESCO.
3. Health Funding: While health spending has grown to 1.9% of GDP, it still falls
short of the 2.5% target set by the National Health Policy 2017.
Gender Budgeting
Women were one of the four key focus groups in the Budget 2025-26, along with the
poor, youth, and farmers.
Since 2005-06, the government releases the Gender Budget Statement (GBS) along
with the Union Budget. This is not a separate budget for women but a reporting tool
showing allocations for women and girls in existing schemes. The GBS has three
parts: Part A (100% allocation for women), Part B (30-99% allocation for women), and

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Part C (1-29% allocation for women).

Increased Allocation for Women:
1. The total allocation for women and girls in the GBS for 2025-26 is ₹4.49 lakh
crore, a 37% increase from the previous year (2024-25).
2. The proportion of total government expenditure dedicated to women’s
schemes has risen from 5% in FY 2019-20 to 9% in FY 2025-26.
Issues in Allocation and Implementation:
1. While overall funding for women has increased, Part A allocations (which fully
fund women-focused schemes) have remained stagnant over time.
2. This could either reflect a greater gender focus in Part B and C schemes or
suggest arbitrary or misallocated funds for women and girls.
Examples of Key Schemes:
1. Mahatma Gandhi National Rural Employment Guarantee Scheme
(MGNREGS): Guarantees at least one-third of its budget for women, and
historically, about half of the workers have been women. For FY 2025-26, 47% of
the total MGNREGS budget is allocated to women.
2. Jal Jeevan Mission (JJM): Aimed at providing functional tap connections to
rural households, reducing the burden on women who traditionally fetch water.
In FY 2025-26, 31% of JJM’s allocation is for women, but this is a decline from the
previous years, suggesting less focus on women in the long term.
3. Pradhan Mantri Awaas Yojana-Grameen (PMAY-G): Ensures that rural
houses are built in women’s names, but only 23% of houses have been allotted
to women, showing a gap between goals and implementation.
4. Mission Saksham Anganwadi and Poshan 2.0: Focuses on health and
nutrition for women and children, with some inconsistencies in how the scheme
is reported in the GBS.
Self-Help Groups (SHGs) Empowerment: The government’s support for women’s
self-help groups has increased, with the National Rural Livelihoods Mission (NRLM)
moving to Part A of the GBS in FY 2024-25, indicating better prioritization of women-
focused schemes.
Challenges
1. Ambiguity in Reporting: The way ministries report gender-focused schemes in
the GBS is unclear. Some allocations appear arbitrary or inconsistent, making it
difficult to track actual progress toward empowering women.
2. Need for Gender Audits: Simply reporting allocations for women is not
enough. The government should conduct regular gender audits across
ministries to ensure effective implementation of women-centered schemes and
reflect a true commitment to empowering women.
[no_toc]

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Withdrawal of Track and Trace System for Pharmaceuticals

Published On Feb 01, 2025

The Commerce Ministry has recently withdrawn the track and trace system for
pharmaceutical exports. This decision aligns with the regulatory framework established by
the Ministry of Health and Family Welfare. The Health Ministry has introduced barcode
requirements for drug brands starting from August 2023. This move aims to enhance the
ease of doing business for exporters while ensuring compliance with international
serialization norms without imposing additional domestic regulations.
Background of the Track and Trace System
The track and trace system was introduced on January 10, 2011.
It mandated barcoding at various packaging levels.
Implementation for tertiary and secondary packaging occurred in 2011 and 2013.
However, primary-level barcoding faced operational challenges and was repeatedly
deferred.
The last extension was valid until February 1, 2025.
Benefits of the Track and Trace System
The track and trace system offers multiple benefits. It helps prevent counterfeit drugs
from entering the supply chain. It also increases efficiency in drug production and sales.
The system addresses challenges related to product recalls and counterfeit products.
Challenges in Implementation
Despite its benefits, the adoption of the track and trace system faces challenges. There is a
lack of common standards across the industry. Security concerns exist as barcodes can be
easily altered. Some pharmaceutical companies argue that the system slows down
production and increases costs.
Recent Developments
The Directorate General of Foreign Trade (DGFT) announced the withdrawal of track
and trace provisions under the Foreign Trade Policy.
The authentication system for exported drug formulations will now be managed by
the Health Ministry according to the Drug Rules of 1945.
The Health Ministry has already implemented barcode requirements for 300 drug
brands, with plans for further expansion.
Importance of the Change
This change is as it aligns with the serialization requirements of most export destinations.
It ensures product traceability without imposing additional domestic regulations. The
DGFT emphasised that this step enhances the ease of doing business for pharmaceutical
exporters while maintaining regulatory coherence.[no_toc]
RBI Conducts $5 Billion Dollar-Rupee Swap Auction
Published On Feb 01, 2025

The Reserve Bank of India (RBI) recently executed a dollar-rupee buy/sell swap transaction
worth $5 billion. This operation is designed to inject liquidity into the Indian financial

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system. It was conducted amid ongoing liquidity deficits and concerns about global
market conditions. The auction attracted bids amounting to $25.6 billion, indicating strong
demand. The transaction will be reversed on August 4, allowing the RBI to sell back the
dollars at a forward rate.
About Dollar-Rupee Swaps
A dollar-rupee swap involves the RBI buying dollars from financial institutions in
exchange for Indian rupees.
This process increases the liquidity in the banking system.
The RBI’s strategy aims to maintain stability in the foreign exchange market.
The forward rate is determined by the current spot rate plus a premium.
Recent Liquidity Trends
Liquidity in the Indian banking system has been in deficit mode since mid-December.
As of January 30, the deficit reached Rs 2.22 lakh crore, with an average daily gap of
Rs 2.04 lakh crore in January.
The RBI’s recent operations, including open market operations (OMO), aim to ease
this situation.
Market Reactions and Expectations
Following the RBI’s announcement, market participants adjusted their positions
accordingly.
The rupee depreciated to 86.53 against the dollar, influenced by global risk
sentiment and uncertainties in US trade policies.
Forward premiums on USD/INR contracts also fell, reflecting market adjustments to
expected liquidity impacts.
Bond Market Dynamics
The bond market displayed mixed reactions.
The 10-year benchmark bond yield initially softened but later regained its levels due
to state-owned banks selling bonds for profit.
The yield ended slightly higher, indicating cautious market sentiment.
Analysts predict that yields will remain within a tight range until the Union Budget
announcement.
Future RBI Operations
The RBI plans to conduct further OMO auctions totalling Rs 60,000 crore in the coming
weeks. These operations are intended to manage liquidity effectively. Additionally, a
variable rate repo auction is scheduled, which will further influence market
liquidity.[no_toc]
The Rise of Card Tokenisation in India
Published On Jan 31, 2025

Card tokenisation has rapidly transformed the digital payment landscape in India. As of
December 2024, over 91 crore tokens have been issued, facilitating more than 320 crore
transactions valued at nearly ₹11 lakh crore. This growth puts stress on the shift towards

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enhanced security in e-commerce, with 98 per cent of online transactions now processed
without actual card data.
What is Tokenisation?
Tokenisation replaces sensitive card details with a unique identifier called a token.
This token serves as a substitute for the customer’s card information, allowing
secure transactions.
Each token is unique to the device or merchant, ensuring that actual card data is
never stored by merchants.
Evolution of Tokenisation in India
The Reserve Bank of India (RBI) first introduced device tokenisation in January 2019,
followed by card-on-file tokenisation in September 2021.
These measures were implemented in response to rising data security concerns,
particularly after breaches like those of MobiKwik and Juspay.
Cyber Security and Regulatory Measures
In October 2022, the RBI mandated that businesses stop storing customer card data. This
policy shift aimed to enhance consumer protection and ensure that sensitive information
was not exposed on third-party platforms. Tokenisation has become essential for securing
digital payments, reducing the risk of data breaches.
How Tokenisation Works
The tokenisation process involves several steps:
Customer Input: A customer enters card information for a transaction.
Token Generation: The system generates a token that replaces the card number.
Secure Storage: The original card data is stored securely in a token vault.
Verification: During a transaction, the token is sent to the vault for verification
against the original data.
Benefits of Tokenisation
Tokenisation offers numerous advantages, including:
Enhanced security by preventing exposure of actual card details.
Simplified compliance with Payment Card Industry Data Security Standards (PCI DSS).
Reduced costs associated with data breaches for merchants.
Compatibility with various payment technologies, including mobile wallets.
Tokenisation vs. Encryption
While both tokenisation and encryption are used for data security, they differ
fundamentally. Encryption scrambles data and requires a decryption key, whereas
tokenisation replaces sensitive data with non-sensitive tokens that cannot be reversed.
Tokenisation is often seen as a more cost-effective solution for securing payment
information.[no_toc]
SEBI Implements New Guidelines for Market Infrastructure Institutions
Published On Jan 31, 2025

The Securities and Exchange Board of India (SEBI) recently introduced guidelines aimed at

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enhancing the evaluation of statutory committees within Market Infrastructure

Institutions (MIIs). This decision comes in response to the need for improved transparency
and accountability in the functioning of these crucial entities. MIIs include stock
exchanges, clearing corporations, and depositories. The guidelines mandate an
independent external evaluation every three years, starting with the 2024-2025 financial
year.
Purpose of the Guidelines
The primary goal of the guidelines is to ensure that MIIs operate with high standards
of governance.
By requiring external evaluations, SEBI intends to assess the roles and
responsibilities of committees.
This initiative also aims to gauge the effectiveness of meetings and overall
governance practices.
Evaluation Process
Under the new framework, MIIs must appoint an independent external agency for
evaluations.
This agency should have relevant experience in the securities market and must be
free from conflicts of interest.
The evaluation will contribute 40% weightage to roles and responsibilities, while
effectiveness of meetings and governance will each account for 30%.
Internal Evaluations
In addition to external evaluations, MIIs are required to conduct annual internal
evaluations.
These reports must be submitted to the Governing Board within three months after
each financial year.
This dual-layered evaluation process is designed to encourage continuous
improvement within MIIs.
Timeline for Implementation
The first external evaluation is set to cover the financial year 2024-2025.
Reports from these evaluations must be submitted by September 30, 2025.
Subsequent evaluations will follow a three-year cycle, ensuring that MIIs are
consistently monitored and assessed.
Importance of MIIs
MIIs play a critical role in the financial ecosystem of India. They facilitate the allocation and
reallocation of capital, which is essential for economic growth. The stability and efficiency
of MIIs are vital for investor confidence and overall market integrity. Any failure within
these institutions could lead to economic repercussions.
Specific Institutions Designated as MIIs
Several entities qualify as MIIs in India. These include major stock exchanges like the
Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The two

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depositories are the Central Depository Services Ltd. and the National Securities
Depository Ltd. Additionally, there are seven recognized clearing houses that help validate
and finalize securities trades.[no_toc]
India-Middle East-Europe Economic Corridor Developments
Published On Jan 31, 2025

The India-Middle East-Europe Economic Corridor (IMEEC) is gaining momentum with

recent initiatives by RITES. This project aims to enhance trade and connectivity between
India and the Middle East, and further into Europe. RITES is now focusing on creating a
digital interface to facilitate cargo clearance between Indian and Middle Eastern ports.
This will mark the first phase of a virtual trade corridor.
Digital Interface Connectivity Project
RITES is developing software for seamless cargo clearances. This initiative includes
improving the ease of doing business in cargo export-import procedures. The project will
integrate IT systems and logistics support. This digital interface will streamline
documentation and clearances across multiple ports.
Interlinking Payment Systems
India and the UAE have signed agreements to interlink their payment platforms. This
includes the integration of UPI from India with AANI from the UAE. Such measures will
enable smooth cross-border transactions. Additionally, the interlinking of RuPay and
JAYWAN debit/credit cards will enhance financial cooperation between the two nations.
What is IMEC?
A new 4,800 km trade and transport corridor connecting India, the Middle East, and
Europe.
It will consist of ship-to-rail networks and road transport routes.
The corridor was announced in September 2023.
It is viewed strategically as a counter to China’s Belt and Road Initiative.
It will include rail, road, and sea routes across two corridors:
East Corridor: Links India to the Arabian Gulf.
Northern Corridor: Connects the Gulf to Europe.
Infrastructure includes an electricity cable, hydrogen pipeline, and high-speed data
cable.
India, USA, Saudi Arabia, UAE, European Union, Italy, France, Germany are its
signatories.
RITES has signed an MoU with Abu Dhabi Ports Group and Etihad Rail to explore rail
connectivity.
Key Ports Connected
India: Mundra, Kandla (Gujarat), JNPT (Navi Mumbai).
Middle East: UAE (Fujairah, Jebel Ali, Abu Dhabi), Saudi Arabia (Dammam, Ras Al
Khair).
Israel: Haifa port (connected via Saudi Arabia and Jordan).

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Europe: Greece (Piraeus), Italy (Messina), France (Marseille).

Objectives of IMEC
Create a fast and efficient transport network between India, the Middle East, and
Europe.
Reduce costs, improve trade efficiency, and cut Greenhouse Gas (GHG) emissions.
Strengthen economic ties and generate employment opportunities.
Geopolitical & Economic Implications of IMEC
Geopolitical Impact
Counter to China’s Belt and Road Initiative (BRI): IMEC provides an alternative
trade route, reducing reliance on China’s infrastructure projects.
Stronger International Ties: Strengthens connections between Asia, Europe, and
the Middle East. Reinforces the US’s presence in the region.
Bypassing Pakistan: Helps India avoid Pakistan’s blockade on direct land
connectivity to the West.
Deeper Ties with the Arabian Peninsula: Strengthens India’s political and economic
relationships with Gulf nations.
Promoting Peace and Stability: Improved regional connectivity may help reduce
tensions in the Middle East.
Potential Expansion to Africa: Aligns with the US and EU’s plans to develop a Trans-
African corridor, allowing India to play a bigger role in Africa’s infrastructure growth.
Economic Impact
Boosts Trade & Reduces Transit Time: IMEC shortens India-Europe trade routes by
40% compared to the Suez Canal.
Encourages Industrial Growth: Companies can easily transport goods, boosting
industrial activity.
Creates Jobs: Expands employment in infrastructure, trade, and logistics.
Strengthens Energy Security: Ensures stable access to energy resources from the
Middle East.
Special Economic Zones (SEZs): IMEC can help develop industrial hubs along its
route, attracting foreign investment.
Challenges Facing IMEC
Logistics & Connectivity Issues: Coordinating rail, road, and sea transport across
multiple countries is complex.
Missing Rail Links: Many rail connections, especially in the Middle East, are
incomplete.
Coordination Among Countries: Managing different legal systems, policies, and
interests is challenging.
Competition from Existing Routes: The Suez Canal may resist IMEC as it threatens
its trade dominance.
High Costs: Developing IMEC could cost $3 billion to $8 billion, requiring massive

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funding.
Infrastructure Development
RITES is identifying infrastructure gaps to connect West Coast ports to the Dedicated
Freight Corridor. This includes the upcoming Vadhavan Port. The goal is to enhance
logistics and supply chain efficiency.
Overseas Expansion and Export Growth
RITES is exploring project consultancy opportunities in the Middle East. The company is
also focusing on rolling stock exports to Latin America and Bangladesh. RITES is
aggressively bidding for export projects without relying on Line of Credit options.[no_toc]
Household Consumption Expenditure Survey (HCES) 2023-24
Published On Jan 31, 2025

The Household Consumption Expenditure Survey (HCES) for 2023-24 reveals critical vital
information about India’s economic landscape. The survey indicates shifts in spending
patterns across rural and urban areas. These changes reflect broader economic
transformations and evolving societal priorities.
Growth in Monthly Per Capita Consumption Expenditure
Over the past decade, the Monthly Per Capita Consumption Expenditure (MPCE) has
seen substantial growth. Rural areas experienced a 45.4 per cent increase in real
terms, rising from ₹1,430 in 2011-12 to ₹2,079 in 2023-24.
Urban areas also saw growth at 38.1 per cent, with MPCE climbing from ₹2,630 to
₹3,632.
This data signifies an improving rural-to-urban MPCE ratio, which rose from 54.4 per
cent to 57.2 per cent, indicating narrowing consumption disparities.
Shift from Food to Non-Food Expenditure
A notable trend is the transition from food-dominated spending to non-food
expenditures.
In 2023-24, rural households allocated 53 per cent of their total expenditure to non-
food items.
Urban households spent 60 per cent on similar categories.
Key areas of spending include transportation, healthcare, clothing, and
entertainment.
This reflects a shift towards lifestyle enhancements and an aspiration for improved
living standards.
Decline in Consumption Inequality
The Gini coefficient, a measure of inequality, has shown a decline.
In rural areas, it fell from 0.283 in 2011-12 to 0.237 in 2023-24.
Urban areas experienced a reduction from 0.363 to 0.284.
Notably, the bottom 5 per cent and 20 per cent of households in both settings
reported consumption growth.
Conversely, the top 5 per cent experienced a decline, suggesting a more equitable

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distribution of resources.
Persistent Income Inequality Challenges
Despite the positive consumption trends, income inequality remains a concern.
The income inequality coefficient was 0.421 in 2023-24, only slightly down from 0.426
in 2017-18.
Rural income inequality improved marginally, while urban income inequality
stagnated.
This marks ongoing challenges in bridging the economic divide, particularly for
lower-income households.
Impact of Inflation on Food Expenditure
After a decade of decline, the share of food expenditure in MPCE has risen.
In rural areas, it increased from 46.4 per cent to 47 per cent.
Urban areas saw a slight rise from 39.2 per cent to 38.7 per cent.
This trend is likely driven by rising food inflation, which strains household budgets
and affects purchasing power.
Growth Disparities in Real Earnings
Real earnings have shown a mixed trajectory.
Lower-income households, primarily engaged in casual labour, saw modest growth
in real earnings.
In contrast, middle- and high-income households reported declines in income
growth.
This disparity reflects broader economic challenges, including stagnant incomes and
slowing GDP growth, which stood at 6.4 per cent for 2023-24.
Policy Implications and Future Directions
As India approaches the Union Budget 2025, addressing consumption and income
inequality is crucial. The government may need to enhance purchasing power for lower-
income households and increase disposable income for the middle class. Potential
interventions could include tax relief and support for small businesses. Encouraging
private sector job creation is also vital for sustaining economic momentum.[no_toc]
Annual Survey of Unincorporated Sector Enterprises (ASUSE) 2023-24
Published On Jan 30, 2025

The Annual Survey of Unincorporated Sector Enterprises (ASUSE) for 2023-24 reveals
growth in India’s unincorporated non-agricultural sector. Released by the Ministry of
Statistics and Programme Implementation (MoSPI) on 24 December 2024, the survey
emphasises the sector’s crucial role in employment and GDP contribution.
Overview of ASUSE
ASUSE covers unincorporated non-agricultural establishments across India, including
rural and urban areas.
The survey includes various sectors such as manufacturing, trade, and services.
It employs a multi-stage stratified sampling method to collect data from thousands

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of establishments.
Key Findings
The total number of establishments rose from 6.50 crore in 2022-23 to 7.34 crore in
2023-24, marking a 12.84% increase.
The “Other Services” sector saw the highest growth at 23.55%, followed by
manufacturing at 13%.
Employment Statistics
The unincorporated non-agricultural sector employed over 12 crore workers during the
survey period, an increase of more than one crore from the previous year. Uttar Pradesh,
Maharashtra, and West Bengal accounted for over one-third of this workforce.
Female Participation
The proportion of female workers increased from 25.63% to 28.12%. Notably, 58% of
manufacturing establishments were led by female proprietors, indicating a positive trend
towards gender inclusivity.
Sector Contributions
Retail trade and apparel manufacturing were the most prominent activities, comprising
27% and 12% of establishments, respectively. Other community and personal services also
showed engagement.
Gross Value Added (GVA)
GVA in the sector grew by 16.52%, driven largely by the services sector’s 26.17% growth.
Maharashtra, Uttar Pradesh, and Gujarat were the top contributors to GVA.
Digital Adoption
Internet usage for business purposes rose from 21.10% to 26.70%. This reflects a strong
trend towards digitalisation within the sector, particularly among trading establishments.
Financial Indicators
Average fixed assets per establishment increased from Rs. 3,18,144 to Rs. 3,24,075.
Outstanding loans also rose, indicating improved financial access for businesses in the
sector.
Registration Trends
The percentage of registered establishments slightly increased from 36.80% to 37.20%.
This trend indicates a growing formalisation of the unincorporated sector.[no_toc]
India and Oman CEPA and DTAA
Published On Jan 29, 2025

India and Oman are advancing their economic collaboration by expediting discussions for
a Comprehensive Economic Partnership Agreement (CEPA). This development comes as
the two nations aim to strengthen trade relations.
Recent Developments
During a visit by India’s Commerce and Industry Minister Piyush Goyal to Oman,
agreements were reached.
The two countries signed a protocol to amend the Double Taxation Avoidance

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Agreement (DTAA), which was originally implemented in 1997.

This amendment aligns with international standards and aims to simplify tax
procedures for businesses operating across borders.
What is DTAA?
DTAA (Double Tax Avoidance Agreement) is a tax treaty between two countries.
It prevents individuals and businesses from being taxed twice on the same income.
Its purpose is to:
Distribute taxing rights between the two countries.
Provide clarity on tax liabilities and reduces legal uncertainties.
It encourages foreign investment and economic cooperation between countries and
supports global financial transparency and prevents illegal tax avoidance.
India-Oman CEPA
The CEPA is expected to enhance bilateral trade and investment.
Negotiations for CEPA commenced in November 2023
Its purpose is to minimize or eliminate customs duties on specific goods while easing
regulations to enhance trade in investments and services.
India has already implemented a CEPA agreement with the United Arab Emirates.
This agreement came into effect in 2022.
Current Trade Statistics
In the fiscal year 2023-24, India’s exports to Oman were valued at approximately $4.47
billion. Conversely, imports from Oman were around $4.5 billion. Key imports include
petroleum products and urea, which together account for over 70% of total imports from
Oman.
Impact on Bilateral Relations
The CEPA and the amended DTAA are expected to serve as milestones in India-Oman
relations. They will facilitate easier trade and investment flows, benefiting businesses in
both countries. The agreements aim to create a more conducive environment for
economic collaboration.[no_toc]
CRED Launches Beta E-Rupee Wallet
Published On Jan 29, 2025

Recently, CRED became the first fintech company to launch a beta version of its e-rupee
wallet, enabling transactions using India’s central bank digital currency (CBDC). This
initiative follows the Reserve Bank of India’s (RBI) proposal to broaden access to CBDC-
Retail, allowing non-bank payment system operators to facilitate digital currency
transactions. The e-rupee wallet aims to enhance financial inclusion and streamline digital
payments in India.
About Central Bank Digital Currency (CBDC)
CBDC is a digital form of legal tender issued by a country’s central bank.
It holds the same value as physical currency. Unlike traditional bank deposits, CBDC
is a liability on the central bank’s balance sheet.

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This means individuals do not need a bank account to possess digital currency.
CBDCs can be exchanged for physical cash and facilitate seamless transactions.
Features of CRED’s E-Rupee Wallet
CRED’s e-rupee wallet allows users to transact up to ₹10,000 per transfer, with a daily
limit of ₹50,000.
The wallet supports zero-cost merchant transactions.
Users can load their wallets via UPI and send or receive money to other CBDC
wallets.
Future updates will introduce programmable payments and PIN-less transactions for
amounts below ₹500.
Partnerships with Financial Institutions
Yes Bank acts as the sponsor bank for CRED’s e-rupee wallet, facilitating the issuance of
CBDC tokens from the RBI. The collaboration aims to ensure secure and efficient
integration of the e-rupee wallet. Other fintech giants like PhonePe, Google Pay, and
AmazonPay are also looking to partner with the RBI to expand the e-rupee’s reach.
Regulatory Context and Global Landscape
The launch of the e-rupee wallet occurs amidst a contrasting stance in the United
States, where President Donald Trump banned the establishment of CBDCs.
The U.S. order prohibits any actions to develop or promote CBDCs, reflecting a
cautious approach to digital currency.
As India embraces CBDC, it positions itself as a leader in digital finance.
Potential Impact on Financial Transactions
The introduction of CBDC is expected to revolutionise financial transactions in India. It
enhances transaction efficiency and reduces costs associated with traditional banking. The
RBI anticipates that CBDC will boost financial inclusion and provide users with more
choices in digital payments.[no_toc]
UPI's Dominance in India's Digital Payment Landscape
Published On Jan 28, 2025

The United Payments Interface (UPI) has fundamentally transformed India’s digital
payment landscape. By the end of 2024, UPI accounted for 83% of the total payment
volume in India. This is increase from 34% in 2019.
Growth Metrics of UPI
The Reserve Bank of India (RBI) has reported that UPI transactions surged to 17,221
crore, contributing to an overall payment volume of 20,787 crore.
In 2018, UPI facilitated 375 crore transactions.
By 2024, this number skyrocketed to 17,221 crore.
The value of UPI transactions also saw a dramatic rise, increasing from Rs 5.86 lakh
crore in 2018 to Rs 246.83 lakh crore in 2024.
This represents a compounded annual growth rate (CAGR) of 89.3% in volume and
86.5% in value over five years.

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Impact on Other Payment Systems

The rise of UPI has led to a decline in the share of other payment systems like RTGS, NEFT,
IMPS, credit cards, and debit cards. Their combined share dropped from 66% in 2019 to
just 17% by 2024.
Overall Growth of Digital Payments
India’s overall digital payment system has experienced substantial growth. The total
payment value rose from Rs 1,775 lakh crore in 2019 to Rs 2,830 lakh crore in 2024. Retail
digital payments also surged, with transactions increasing from 162 crore in the financial
year 2013 to over 16,416 crore in 2025. This signifies an almost 100-fold growth over a
span of 12 years.
Digital Payment Index Performance
The RBI’s Digital Payment Index reflects the impressive expansion of payment
infrastructure.
The index grew more than four-fold in six years, reaching 445.50 in March 2024, up
from a base of 100 in March 2018.
This growth marks the increasing accessibility and efficiency of digital payment
systems in India.
Recent Trends in Digital Transactions
Since 2023, digital transactions have grown 94 times in volume and over 3.5 times in
value. Over the past five years, digital payments in India have increased 6.7 times in
volume and 1.6 times in value. This results in a five-year CAGR of 45.9% in volume and
10.2% in value, indicating a robust trend towards digitalisation.[no_toc]
RBI's Liquidity Measures
Published On Jan 28, 2025

The Reserve Bank of India (RBI) has recently intensified its efforts to enhance liquidity in
the banking system. This initiative comes in response to liquidity deficit, which has been
exacerbated by tax outflows and constrained government spending. The central bank’s
measures aim to inject approximately ₹1.5 lakh crore into the banking sector, beginning
on January 30 and concluding on February 20, 2025.
Key Liquidity Measures Announced
The RBI has introduced several critical measures. These include:
1. A $5 billion USD/INR buy/sell swap auction with a six-month tenor.
2. Conducting open market operation (OMO) purchase auctions of government
securities (G-Secs) totalling ₹60,000 crore.
3. Holding a 56-day variable rate repo (VRR) auction for ₹50,000 crore.
These actions are designed to provide a substantial liquidity cushion to the banks.
About the USD/INR Buy/Sell Swap
In the USD/INR buy/sell swap, banks sell US dollars to the RBI.
In return, the RBI credits rupee funds to the banks’ current accounts.
After six months, the banks will return the rupee funds along with a swap premium

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to reclaim the US dollars.

This mechanism is crucial for managing currency liquidity without affecting the
foreign exchange reserves directly.
Open Market Operations
The OMO involves the RBI purchasing government securities from the market. This
process injects liquidity into the banking system. The RBI plans to conduct three auctions
of ₹20,000 crore each on January 30, February 13, and February 20. These purchases are
expected to stabilise government bond yields, which have recently reached a three-year
low.
Variable Rate Repo Auctions
The 56-day variable rate repo auction will allow banks to borrow funds from the RBI,
offering flexibility in managing their liquidity needs.
This auction is notable for its extended tenor, marking a shift in the RBI’s approach
to liquidity management.
The first VRR auction is scheduled for February 7, 2025.
Impact on Interest Rates
Economists predict that these liquidity measures may lead to a reduction in interest rates.
The RBI’s liquidity push is seen as a precursor to potential repo rate cuts. The rate-setting
committee is scheduled to meet in early February, and market analysts anticipate that the
RBI will consider a rate reduction in light of the improved liquidity conditions.
Monitoring Liquidity Conditions
The RBI has emphasised its commitment to monitoring the evolving liquidity landscape.
As the liquidity deficit is projected to peak at ₹4 lakh crore by March, the central bank’s
proactive measures are essential. The RBI aims to ensure that liquidity remains orderly
and conducive to economic growth.[no_toc]
Punjab National Bank Integrates NCRP Solution for Cybersecurity
Published On Jan 28, 2025

Recently, Punjab National Bank (PNB) made headlines by becoming the first Indian bank
to implement Clari5’s National Cybercrime Reporting Portal (NCRP) Integration Solution.
This integration represents advancement in the management of cybercrime complaints
within the banking sector. The system connects seamlessly with the Indian Cybercrime
Coordination Centre (I4C), facilitating real-time complaint management and enhancing
fraud prevention measures.
Overview of the NCRP Integration Solution
The NCRP Integration Solution is designed to streamline the reporting and
management of cybercrime complaints.
It connects various banking platforms, including Internet Banking, Mobile Banking,
and ATMs.
This integration supports future enhancements for credit cards and central bank
digital currencies (CBDC).

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Key Features of the Solution

The system incorporates several innovative features.
Real-Time Lien with FIFO Logic prioritises complaints for quicker resolution. Smart
Debit Freeze automatically locks fraudulent accounts based on predefined rules.
Customisable whitelisting protects critical accounts from unnecessary complaint
processes.
Impact on Fraud Prevention
PNB’s adoption of this solution sets a new standard for the banking industry. It promises
improved fraud detection and enhanced security measures. The system’s automated
processes ensure data integrity and reliability, even during system outages.
Future Prospects for the Banking Sector
The success of the NCRP Integration Solution at PNB could encourage other banks to
adopt similar technologies. This move aligns with the broader goal of creating a safer
financial ecosystem in India. As cyber threats evolve, such integrations will be crucial for
maintaining banking integrity.
Role of the National Cybercrime Reporting Portal
The NCRP, launched in 2019, allows reporting of all types of cybercrime incidents. It
focuses on online child sex abuse material and provides various monitoring dashboards.
The portal also features an automated chatbot for user assistance and a citizen financial
cyber fraud reporting system connecting multiple banks and payment
intermediaries.[no_toc]
India's Forex Reserves Decline
Published On Jan 27, 2025

India’s foreign exchange (forex) reserves have experienced fluctuations in recent weeks.
As of January 17, 2025, the reserves stood at $623.983 billion, a decrease of $1.88 billion
from the previous week. This decline follows a larger drop of $8.714 billion recorded in the
week ending January 10. The Reserve Bank of India (RBI) attributes these changes to
market interventions aimed at stabilising the Indian rupee and adjustments in asset
valuations.
About Forex Reserves
Forex reserves are assets held by a country’s central bank in foreign currencies.
These reserves are crucial for maintaining currency stability, facilitating international
trade, and managing foreign debt.
They typically include foreign currency assets, gold reserves, and Special Drawing
Rights (SDRs).
Components of Forex Reserves
The main components of India’s forex reserves include:
Foreign Currency Assets: This is the largest part of the reserves, amounting to
$533.133 billion as of January 17. It reflects the value of currencies like the euro,
pound, and yen.

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Gold Reserves: These increased to $68.947 billion. Gold acts as a hedge against
inflation and currency fluctuations.
Special Drawing Rights (SDRs): These are international reserve assets created by
the International Monetary Fund (IMF). India’s SDRs rose to $17.782 billion.
Reserve Position with the IMF: This represents India’s financial position with the
IMF, which decreased to $4.122 billion.
Factors Influencing Forex Reserves
Several factors contribute to the fluctuations in forex reserves:
Market Interventions: The RBI intervenes in the forex market to mitigate excessive
volatility in the rupee.
Valuation Changes: The value of foreign currency assets can change due to
fluctuations in exchange rates.
Global Economic Conditions: Economic stability or instability in major economies
can impact reserve levels
Recent Trends in Forex Reserves
The decline in reserves marks a shift from the peak of $704.885 billion reached in
September 2024. The recent downward trend is concerning for analysts, as it may indicate
underlying economic pressures. Continuous monitoring of reserve levels is vital for
assessing India’s economic health.
Implications of Declining Reserves
A decline in forex reserves can have several implications:
Currency Stability: Lower reserves may lead to increased volatility in the rupee.
Inflation Control: The RBI may face challenges in controlling inflation without
adequate reserves.
Investor Confidence: A decrease in reserves can affect investor sentiment and
foreign investment inflows.
[no_toc]
Insolvency and Bankruptcy Code Cases Slow Down
Published On Jan 27, 2025

The Insolvency and Bankruptcy Code (IBC) has been mechanism for resolving distressed
debts in India. However, recent trends indicate a decline in its effectiveness. The Reserve
Bank of India (RBI) reported a drop in case admissions to the National Company Law
Tribunal (NCLT), reaching a six-year low in 2023-24. Recovery rates for banks through the
IBC have also decreased . This shift raises questions about the future role of the IBC in the
financial landscape.
Declining Case Admissions
The number of cases admitted under the IBC has fallen sharply. In the first half of
the fiscal year, only 417 cases were admitted, compared to 501 in the same period
last year.
This decline marks a growing reluctance among banks to utilise the IBC for

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recoveries.
Delays in the admission process are factor in this trend.
Recovery Rates and Delays
Recovery rates through the IBC have plummeted to 28% in 2023-24, down from 40%
the previous year.
The IBC mandates a 14-day timeline for case admissions.
However, the actual process often extends to 400–600 days.
This discrepancy undermines the effectiveness of the IBC and contributes to the
erosion of non-performing assets (NPAs).
Erosion of Confidence Among Banks
The declining recovery rates and extended timelines have diminished banks’ confidence in
the IBC. Many creditors now prefer alternative methods for debt resolution. Bilateral
settlements and debt assignments are becoming more common as banks seek quicker
and less costly options.
The Role of Asset Reconstruction Companies
Asset Reconstruction Companies (ARCs) are emerging as viable alternatives to the IBC.
They offer a more efficient approach to managing distressed assets. The ability to sidestep
lengthy processes associated with the IBC is appealing to banks, particularly those with
lower claims.
Importance of Operational Efficiency
Experts emphasise the need for enhanced operational efficiency within the NCLT.
Strengthening bench strength and streamlining processes are crucial for improving the
IBC’s effectiveness. Incorporating technology-driven solutions could also facilitate quicker
resolutions.
Restructuring as a Preferred Approach
Restructuring loans is increasingly favoured over pursuing insolvency. Many insolvencies
arise from liquidity issues rather than mismanagement. The IBC has instilled a sense of
discipline among creditors, making restructuring a more attractive option for banks and
financial institutions.
Strengthening Legal Framework
Providing immunity to bankers for their commercial decisions is another suggestion from
experts. This could encourage timely actions and prudent risk-taking, thereby boosting
the resilience of the banking sector.[no_toc]
Surge in Banking Complaints Under Ombudsman Scheme
Published On Jan 27, 2025

The Reserve Bank of India (RBI) reported rise in customer complaints under its Integrated
Ombudsman Scheme for the fiscal year ending March 2024. The total complaints surged
by 32.81 per cent, reaching 934,355. This increase indicates a decline in customer service
standards across the banking sector. The rise in complaints marks the need for immediate
improvements in service delivery.

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Background of the Ombudsman Scheme

The Integrated Ombudsman Scheme was launched on November 12, 2021.
It aims to provide a streamlined process for addressing customer grievances related
to banks, non-banking financial companies (NBFCs), payment system participants,
and credit information companies.
Overview of Complaints
The Ombudsman Scheme received complaints from various banking segments.
The most notable was in loans and advances, with 85,281 complaints, marking a
42.70 per cent increase from the previous year. Mobile and electronic banking
complaints reached 57,242, a 32.61 per cent rise.
Complaints related to deposit accounts and credit cards also increased .
Geographic Distribution of Complaints
Chandigarh, NCT of Delhi, Rajasthan, Gujarat, and Uttarakhand were the top
contributors to complaints per lakh accounts.
In contrast, Mizoram, Nagaland, Ladakh, Manipur, and Lakshadweep had the lowest
complaint rates.
This geographical disparity raises questions about banking service quality across
different regions.
Nature of Complaints
Many complaints revolved around unfair banking practices. Customers reported issues
such as interest being charged from the date of loan sanction rather than disbursement.
Other complaints included unauthorized charges, fraudulent activities, and disputes with
merchants. Customers also expressed dissatisfaction with credit card rewards and
promotional benefits.
Complaint Resolution Statistics
The RBI Ombudsman disposed of 284,355 complaints during the year, achieving a
disposal rate of 95.10 per cent.
Of these, 67.83 per cent were maintainable complaints.
A number of cases were resolved through mutual settlement, conciliation, or
mediation. However, 40.78 per cent were rejected due to no service deficiency.
Increase in Centralised Receipt and Processing Centre Complaints
The Centralised Receipt and Processing Centre (CRPC) experienced a substantial
increase in complaints, receiving 766,957, a 30.10 per cent rise.
The majority of these were closed as non-maintainable complaints.
A portion of complaints were addressed to the RBI without prior lodging with the
concerned entity.
[no_toc]
CBIC Introduces Temporary Identification Number
Published On Jan 27, 2025

The Central Board of Indirect Taxes and Customs (CBIC) has recently implemented

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changes to the Goods and Services Tax (GST) framework in India. These changes include
the introduction of a Temporary Identification Number (TIN) for businesses that do not
require mandatory registration. This move aims to streamline tax compliance and
facilitate payments under the GST regime. Additionally, the CBIC has announced a waiver
of excess late fees for the financial years 2017-18 to 2022-23 concerning annual returns.
Temporary Identification Numbers Under GST
The GST Council has recommended a new rule enabling tax officers to issue
Temporary Identification Numbers to entities not liable for registration.
This provision allows businesses to make necessary payments even without a
permanent GST registration.
The notification clarifies that these TINs will be granted under specific conditions
outlined in Part B of FORM GST REG-12.
Threshold Limits for Registration
Under the GST framework, businesses must register if their turnover exceeds certain
thresholds.
For the manufacturing sector, the limit is ₹40 lakh.
For the service sector, it is set at ₹20 lakh.
Special Category States have different thresholds, with some like Jammu and
Kashmir opting for a ₹40 lakh limit for commodities.
Other states, such as Puducherry, have chosen a ₹20 lakh limit for goods.
Waiver of Late Fees for Annual Returns
The CBIC has also waived excess late fees for the delayed filing of annual returns
from FY 2017-18 to FY 2022-23.
This waiver applies specifically to late fees exceeding the payable amount for Form
GSTR-9C if filed by March 31, 2025.
However, taxpayers will not receive refunds for late fees already paid for these
financial years.
Filing Requirements for GST Returns
Registered taxpayers whose annual turnover exceeds ₹2 crore must file Form GSTR-9, an
annual return that details sales, purchases, and taxes paid. The deadline for this filing is
December 31 of the year following the financial year. Additionally, those with an
aggregate turnover exceeding ₹5 crore must file Form GSTR-9C, a self-certified Annual
Reconciliation Statement.
Impact on Tax Compliance
These regulatory changes are expected to enhance tax compliance among small and
medium enterprises. By allowing temporary identification numbers, the CBIC aims to
reduce barriers for businesses to engage in GST payments. The waiver of late fees further
encourages timely compliance with filing requirements.[no_toc]
Unified Lending Interface (ULI) Pilot
Published On Jan 25, 2025

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The Unified Lending Interface (ULI) was launched by the Reserve Bank of India (RBI) to
streamline the lending process. Since its pilot inception in August 2023, ULI has facilitated
the disbursement of ₹38,000 crore across 7.5 lakh loans. This platform aims to
revolutionise credit delivery by connecting lenders with diverse data sources through a
single interface.
What Is the Unified Lending Interface?
ULI is a technology platform designed to enable seamless access to digitised
financial and non-financial data.
It connects lenders to multiple data service providers via standardised Application
Programming Interfaces (APIs).
This ‘plug and play’ approach simplifies the credit underwriting process, making it
easier for borrowers to access loans.
Key Features of ULI
The ULI allows lenders to access a comprehensive range of data including land
records, satellite imagery, and financial insights.
This is particularly beneficial for first-time borrowers who lack traditional credit
histories.
With ULI, lenders can quickly assess an applicant’s creditworthiness through
available data, reducing the time and complexity of loan approvals.
Benefits for Borrowers
Borrowers, especially from rural areas, can now secure loans without extensive
documentation. ULI provides vital information about their economic activities, allowing
lenders to automate decision-making. For instance, a dairy farmer can have their loan
eligibility assessed based on cash flow data from milk cooperatives and land ownership
records.
Expansion and Future Scope
The RBI plans to expand ULI’s scope by incorporating more loan types and data providers.
This includes kisan credit cards, housing loans, and micro-business loans. The goal is to
enhance the platform’s capabilities and further simplify credit access for diverse borrower
profiles.
Digital Public Infrastructure
India’s embrace of Digital Public Infrastructure (DPI) facilitates transparency and efficiency
across various sectors. ULI is important component of this infrastructure, aiming to break
down data silos that hinder effective credit delivery. By integrating diverse data sources,
ULI enhances the overall digital ecosystem for financial transactions.
The Role of FinTechs
FinTech companies stand to benefit from ULI. They can access a variety of lenders through
a single platform, enabling them to provide deeper customer insights. This collaboration
between traditional banks and FinTechs is expected to enhance the lending landscape
further.[no_toc]

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Rising Geo-Economic Fragmentation Threatens Global GDP

Published On Jan 24, 2025

The World Economic Forum recently released the Navigating Global Financial System
Fragmentation report. It revealed that geo-economic fragmentation could drastically
diminish global GDP. This potential impact is set to eclipse the economic fallout from both
the 2008 financial crisis and the COVID-19 pandemic. Emerging markets, particularly
nations like India, are poised to shoulder economic burdens as geopolitical tensions
escalate.
About Geo-Economic Fragmentation
Geo-economic fragmentation refers to the division of the global economy into
separate, often hostile, blocs.
This trend is driven by countries employing financial measures to achieve
geopolitical goals.
Examples include sanctions, trade barriers, and industrial policies. Such actions
disrupt established trade relations and reduce cross-border capital flows.
Economic Implications of Fragmentation
Geo-economic fragmentation could cost the global economy between USD 0.6 trillion
and USD 5.7 trillion. This represents up to 5% of global GDP.
The economic fallout includes reduced trade efficiency and hampered investment
flows.
Additionally, inflation rates could surge by more than 5% in extreme scenarios.
The Role of Sanctions and Statecraft
Since 2017, there has been a staggering 370% increase in the use of sanctions. Countries
are increasingly leveraging the financial system to pursue national interests. This shift is
evident in the rise of subsidies and discussions around creating alternative financial
systems. Such strategies complicate international trade and investment landscapes.
Impact on Emerging Markets
Emerging economies are particularly vulnerable to the effects of geo-economic
fragmentation. Nations like India, Brazil, and Turkiye could see GDP declines exceeding
10% in severe fragmentation scenarios. These countries rely heavily on an integrated
financial system for growth, making them susceptible to economic shocks.
Inflationary Pressures
Fragmentation is not just a threat to GDP; it also fuels inflation. Increased costs of trade
and reduced competition can lead to higher prices for consumers. Emerging markets,
which often have less economic resilience, may experience the most severe inflationary
impacts. This could exacerbate living costs and hinder economic development.
Policy Recommendations for Mitigation
The WEF report urges policymakers to adopt strategies that promote cooperation and
sustainable development. A principled approach to economic statecraft can help mitigate
the adverse effects of fragmentation. By encouraging resilience in the global economy,

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leaders can better navigate the challenges posed by geopolitical tensions.

Future Scenarios and Economic Decoupling
In a scenario of complete economic decoupling between Eastern and Western blocs,
nations not aligned with either side may be forced to trade exclusively with their largest
economic partner. This could lead to economic isolation and further declines in GDP
growth for these countries.[no_toc]
Global Foreign Direct Investment Decline
Published On Jan 24, 2025

Global foreign direct investment (FDI) experienced a notable decline of eight per cent in
2024, according to the United Nations Conference on Trade and Development (UNCTAD).
This reduction poses risks to achieving the Sustainable Development Goals (SDGs), which
heavily depend on international project finance. The challenges in securing international
project finance are critical, particularly for infrastructure and energy sectors.
Overview of Foreign Direct Investment
FDI refers to the investment made by a foreign entity in a business or assets in
another country.
Unlike foreign portfolio investment, which involves purchasing equity shares without
control, FDI grants the investor degree of influence over the operations of the
enterprise.
It encompasses not only capital inflow but also the transfer of technology, skills, and
expertise, making it vital for economic development.
Recent Trends in International Project Finance
In 2024, international project finance witnessed a substantial decline, with the
number of deals falling by 26 per cent and their value decreasing by nearly a third.
Developed economies faced a 29 per cent drop in project finance deals, continuing a
downward trend from 2023.
Developing economies also struggled, with a 23 per cent decrease in deal numbers
and a 33 per cent decline in value, primarily due to fewer announcements in Asia.
Impact on Infrastructure Development
Infrastructure investment is crucial for economic growth. However, international project
finance in this sector fell by 31 per cent in number and 26 per cent in value. Renewable
energy projects, which had previously driven growth, also slowed down by 16 per cent in
both metrics. Notably, North America, developing Asia, and Latin America experienced
reductions in renewable energy project finance.
Sustainable Development Goals and Investment
The decline in international project finance is particularly concerning for sectors essential
to the SDGs in developing countries. In 2024, SDG-related investments dropped by 11 per
cent. While there was some growth in renewable energy and health sectors, critical areas
like infrastructure, agrifood systems, and water and sanitation saw fewer projects
financed than in 2015, when the SDGs were adopted.

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Future Prospects for FDI

Looking ahead to 2025, moderate growth in FDI is anticipated, aided by improved
financing conditions. However, geopolitical tensions and global economic instability
present ongoing challenges. The persistent decline in international project finance marks
the need for diverse strategies to attract and sustain investment, particularly in sectors
vital for sustainable development.
Determinants of Foreign Direct Investment
Several factors influence FDI in host countries. A conducive policy framework, political and
economic stability, and favourable treatment standards for foreign affiliates are essential.
Additionally, international agreements, trade policies, and privatisation strategies play
important role in determining FDI flows. The advantages of FDI are not uniformly
distributed and depend on the host country’s infrastructure and regulatory
environment.[no_toc]
Sebi's New When-Listed Trading Platform Explained
Published On Jan 24, 2025

The Securities and Exchange Board of India (Sebi) is set to launch a “when-listed” trading
platform. This initiative aims to regulate the trading of shares between the allotment
phase of an initial public offering (IPO) and their official listing on stock exchanges. This
move is designed to tackle the prevalent grey market activities associated with unlisted
shares.
What is When-Listed Platform?
The “when-listed” platform will allow investors to trade shares immediately after they
are allotted but before they are officially listed.
This change seeks to provide a regulated environment for trading, reducing reliance
on the unregulated grey market.
The current system, which involves a three-day waiting period post-allotment, often
leads to informal trading activities that Sebi aims to eliminate.
The Grey Market Phenomenon
The grey market refers to unofficial trading before shares are listed. It operates based on
supply and demand, allowing investors to buy or sell shares without formal exchange
mechanisms. This market is often characterised by speculative trading, where investors
gauge potential profits based on anticipated listing prices. The grey market can create
volatility and mislead investor expectations.
Current IPO Timeline
Currently, after the closure of an IPO bidding process, shares are allotted on T+1 day,
with listing occurring on T+3 days.
This three-day gap has become a hotspot for grey market trading, where investors
engage in unofficial transactions.
The “when-listed” platform aims to fill this gap with regulated trading options.

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Mechanics of Grey Market Trading

When a company announces an IPO, grey market activities commence with brokers
who specialise in these unofficial trades.
They establish a price band for the IPO and add a premium.
For instance, if the IPO price band is set at Rs 90-100, the grey market premium
could elevate the price to Rs 110-130.
Trades are settled based on the opening price on the official listing day, exposing
investors to the risk of losses if the stock opens lower than their grey market
purchase price.
Benefits for Investors
The introduction of the “when-listed” facility will allow investors to trade their allotted
shares in a regulated market, enhancing transparency and security. According to Buch,
once shares are allotted, investors should have the right to sell them in an organised
manner rather than relying on informal channels. This shift is expected to stabilise market
sentiments and reduce volatility associated with speculative trading.
Industry Perspectives
Market experts believe that the grey market creates unnecessary risks for retail investors.
Jyoti Prakash Gadia, a merchant banker, noted that the grey market’s volatility can skew
market perceptions and should be controlled. The establishment of a formal trading
platform will not only legitimise trading activities but also protect investor interests by
mitigating dubious transactions prevalent in the grey market.
Future Considerations
While the “when-listed” platform is a positive step, market participants urge Sebi to
address grey market activities that begin with the announcement of an IPO. A
comprehensive approach to regulating these activities could further safeguard retail
investors and ensure a fair trading environment.[no_toc]
India's Manufacturing Vision for Tier 2 and 3 Cities
Published On Jan 23, 2025

The Government of India is focusing on enhancing manufacturing capabilities in Tier 2

and 3 cities. This initiative aims to boost the country’s economic growth by increasing the
contribution of manufacturing to the Gross Value Added. The Commerce Ministry has
mandated states and Union Territories (UTs) to develop a ‘City Level Economic Vision’ for
100 selected cities by June 2026.
Strategic Framework Overview
The initiative is part of a broader strategic framework established by the Department of
Promotion of Industry and Internal Trade (DPIIT). This framework was discussed at the
Fourth National Conference of Chief Secretaries. It targets 1,039 towns, aiming to shift
manufacturing focus from traditional industrial hubs to less developed areas.
Importance of Tier 2 and 3 Cities
Tier 2 and 3 cities are vital for India’s economic growth. They offer a demographic

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dividend, an affordable workforce, and potential for industrial expansion. The government
believes that addressing infrastructure challenges and enhancing logistics will create a
robust manufacturing ecosystem in these areas.
Tailored Approaches for States
States with lower Gross State Domestic Product (GSDP) are encouraged to prioritise
capital-efficient and labour-intensive industries. Conversely, states with established
manufacturing bases should focus on research and development, high-tech industries,
and innovation. This tailored approach allows states to leverage their unique strengths.
Key Enablers for Manufacturing Growth
The government has identified several key enablers necessary for manufacturing growth,
including:
Industrial Infrastructure: Development of flexible land lease policies and 100 plug-
and-play parks by December 2025.
Logistics: Implementation of a State Logistics Action Plan by June 2026.
Ease of Doing Business: Improvement of the single-window system and reduction
of compliance burdens by December 2025.
Skilling and Entrepreneurship: Conducting skill gap studies and establishing 100
new start-up incubation centres by December 2029.
Timelines for Implementation
States and UTs have been given specific timelines to implement various reforms. Key
deadlines include: – June 2026 – Submission of City Level Economic Vision and State
Logistics Action Plan. – December 2025 – Development of flexible land lease policies and
improvement of the single-window system. – December 2026 – Formulation of City
Logistics Plans for 25 cities.
Employment Growth Objectives
The government aims to increase the share of manufacturing in employment from 12% to
22% by 2047. This goal reflects the stagnant employment share in manufacturing since
1972-73. By expanding manufacturing into Tier 2 and 3 cities, the government anticipates
boost in job creation.
Conclusion of the Initiative
The initiative represents a comprehensive effort to decentralise manufacturing in India. By
enhancing infrastructure, logistics, and workforce skills in Tier 2 and 3 cities, the
government aims to encourage a vibrant manufacturing ecosystem that can contribute
substantially to the national economy.[no_toc]
India's Semiconductor and Electronics Manufacturing Initiatives
Published On Jan 23, 2025

India is making strides in the semiconductor and electronics manufacturing sectors as it

prepares for the Union Budget 2025-26. The Union Finance Ministry has brought into light
the government’s successful policies aimed at boosting investments and job creation
through the semiconductor programme and the Production-Linked Incentive (PLI)

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scheme. These initiatives are crucial for establishing India as a global hub for
semiconductor and electronic goods manufacturing.
Semiconductor Programme Overview
The ‘Programme for Development of Semiconductors and Display Manufacturing
Ecosystem’ offers attractive incentives to semiconductor packaging and design
companies.
Launched in December 2021, the Semicon India Programme has approved five
semiconductor projects and supported 16 design companies.
This initiative is expected to attract investments of ₹1.52 lakh crore and create
approximately 25,000 direct jobs, along with 60,000 indirect jobs.
Production-Linked Incentive (PLI) Scheme
Under the PLI scheme for electronics, India has achieved production worth ₹6.14
lakh crore and exports of ₹3.12 lakh crore.
This has led to the creation of over 128,000 direct jobs in the electronics sector,
reinforcing India’s position as a global manufacturing powerhouse. T
he PLI scheme aims to provide competitive incentives to companies in the
semiconductor and electronics manufacturing sectors.
Incentives for Semiconductor Manufacturing
The semiconductor programme includes fiscal support of up to 50% for setting up
semiconductor and display fabrication units.
The government collaborates with states to create high-tech clusters with necessary
infrastructure.
Additionally, fiscal support of 30% is available for capital expenditure in compound
semiconductor units.
Design Linked Incentive Scheme
The Design Linked Incentive (DLI) Scheme offers incentives of up to 50% on eligible
expenditures for semiconductor design companies.
This includes support for Integrated Circuits (ICs), chipsets, and System on Chips
(SoCs).
The goal is to boost domestic capabilities in semiconductor design and innovation.
India Semiconductor Mission
The India Semiconductor Mission (ISM) will be established to drive long-term strategies for
developing a sustainable semiconductor ecosystem. Led by global experts, ISM will act as
the nodal agency for implementing semiconductor and display manufacturing schemes
efficiently.
Strategic Importance of Semiconductors
In the current geopolitical landscape, semiconductors are vital for national security and
economic stability. The development of a robust semiconductor ecosystem will enhance
India’s self-reliance and integration into global supply chains.

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Challenges in the Electronics Sector

Despite growth, India faces challenges such as low net value addition in electronics
production, reliance on imports for critical components, and a lack of indigenous
semiconductor foundries. These factors hinder the country’s ability to fully capitalise on its
manufacturing potential.
Future Directions for India’s Semiconductor Industry
To advance in semiconductor manufacturing, India must focus on building comprehensive
support across the chip-making supply chain, including design, testing, and packaging.
Increasing fiscal support and leveraging public sector enterprises can facilitate the
establishment of semiconductor foundries. Emphasising a collaborative approach within a
trusted semiconductor ecosystem will be essential for India’s success in this
domain.[no_toc]
MeitY Releases "Estimation and Measurement of India’s Digital Economy" Report
Published On Jan 23, 2025

India’s digital economy has been experiencing rapid growth, contributing to the national
income and employment landscape. The Ministry of Electronics and Information
Technology (MeitY) has released a very important report titled “Estimation and
Measurement of India’s Digital Economy,” aiming to quantify this sector’s impact. This
report is crucial for policymakers and businesses in strategising for future growth.
Definition and Scope of Digital Economy
The digital economy encompasses all economic activities that utilise digital technologies.
It includes both new digital industries, such as tech platforms, and the digital share of
traditional sectors like banking, education, and trade. This integrated nature makes
precise measurement challenging, especially within conventional national accounts.
Recent Estimates and Findings
According to the report, India’s digital economy accounted for approximately 11.74% of
the national income in 2022-23, equating to INR 31.64 lakh crore (around USD 402 billion).
This figure positions India as a leader among developing countries in measuring its digital
economy, utilising the OECD framework and the input-output approach recommended by
the Asian Development Bank (ADB).
Key Contributors to Digital Economy
The digital-enabling industry, which includes ICT services and telecommunication, is the
largest contributor, making up 7.83% of Gross Value Added (GVA). New digital industries,
comprising major tech firms and platforms, contribute nearly 2% to GVA. Additionally,
traditional sectors like banking and education contribute another 2%, denoting the
pervasive influence of digitalisation across the economy.
Employment Impact
The digital economy employed approximately 14.67 million workers, representing 2.55%
of India’s workforce in 2022-23. This employment figure puts stress on the sector’s role in
job creation and its potential for future growth.

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Future Projections
Projections indicate that India’s digital economy is set to grow nearly twice as fast as the
overall economy, potentially contributing to one-fifth of national income by 2030. The
growth will primarily stem from digital intermediaries and platforms, along with increased
digitalisation across various sectors.
Challenges in Data and Measurement
The estimates provided in the report are considered conservative due to limited data
availability. Key areas lacking comprehensive data include smaller digital platforms,
informal sector digitalisation, and the digitalisation of traditional sectors like health and
logistics.
Importance for Policymakers and Businesses
The insights from the report are vital for effective policymaking and strategic business
decisions. Accurate data on the digital economy allows for targeted interventions,
promotes innovation, and enhances competitiveness in a global market. Policymakers can
leverage this information for informed decisions that support digital growth across the
economy.[no_toc]
US Withdrawal from OECD Global Tax Deal
Published On Jan 23, 2025

Recently, shortly after taking office, US President Donald Trump issued an executive order
withdrawing the United States from the OECD’s global tax deal. This agreement, designed
to combat tax avoidance by multinational corporations, has been put on hold.
What is OECD Global Tax Deal?
The OECD Global Tax Deal was established to address tax avoidance by large
multinational companies.
It consists of two main pillars:
1. Pillar 1 reallocates profits from home countries to jurisdictions where revenue is
generated.
2. Pillar 2 sets a global minimum corporate tax rate of 15%.
Over 140 countries had signed the deal, aiming for a fairer international tax
landscape.
US Executive Order Details
President Trump’s memorandum criticises the global tax deal for undermining US
sovereignty and economic competitiveness. The order states that the deal imposes
extraterritorial jurisdiction over American income and restricts the US’s ability to create tax
policies beneficial to American businesses. Consequently, the US will not comply with the
deal’s stipulations.
Impact on Global Tax Landscape
Experts predict that the US withdrawal will have consequences for the global tax
framework. Countries that have already begun implementing the Global Anti-Base Erosion
Model (GloBE) rules may need to revise their strategies to align with the new US stance.

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Approximately 50 jurisdictions had made progress towards adopting these rules, and they
now face uncertainty.
India’s Position on the Global Tax Deal
India has historically maintained a cautious approach towards adopting GloBE rules.
The country has not yet made legislative changes in response to the OECD deal.
In the Union Budget 2024, India eliminated the 2% equalisation levy, which had been
a contentious issue with the US.
Consequently, the impact of the US withdrawal on India’s tax collection is expected
to be minimal.
Role of the OECD in Global Economics
The OECD, comprising 37 democracies with market economies, serves as a forum for
developing policy standards that promote sustainable economic growth.
It facilitates collaboration among governments, enabling them to share experiences
and develop high economic policy standards.
The OECD has been important source of evidence-based policy analysis and
economic data for over 50 years.
Current OECD Membership and Economic Influence
OECD member countries account for a substantial portion of the global economy,
representing three-fifths of world GDP and three-quarters of world trade. The
organisation plays a vital role in promoting sound economic policies, innovation, and
resource efficiency, thereby influencing global economic dynamics .[no_toc]
Diamond Imprest Authorization Scheme
Published On Jan 22, 2025

On April 1, 2025, India will implement the Diamond Imprest Authorization (DIA) Scheme.
The scheme is a strategic response to global beneficiation policies that require diamond
manufacturers to establish local processing facilities. It will take effect from April 1, 2025.
Scheme Overview
This DIA Scheme allows for the duty-free import of natural cut and polished
diamonds, aiming to enhance value addition and stimulate exports.
It permits duty-free import of diamonds under ¼ Carat.
Exporters must add 10% value before exporting.
Eligible exporters include those with Two Star Export House status and annual
exports of $15 million or more.
Exemptions and Benefits
Imports under the scheme are exempt from various duties, including Basic Customs
Duty and Integrated Tax.
This exemption aids in reducing costs for diamond importers, encouraging a
competitive market.
Target Audience
The scheme primarily benefits Indian diamond exporters, especially MSMEs. It aims to

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support smaller firms in competing with larger entities in the diamond industry.
Global Context
This initiative aligns with global trends in diamond beneficiation, particularly in countries
like Botswana and Namibia. These nations enforce local processing requirements to
enhance domestic value addition.
Economic Impact
The scheme seeks to prevent capital flight from India to diamond-mining countries.
It aims to create jobs in diamond processing and boost the domestic industry, which
has faced export declines and job losses.
Industry Challenges
The Indian diamond industry has been struggling with reduced exports and employment.
The DIA Scheme is designed to rejuvenate the sector by providing necessary support and
incentives.[no_toc]
European Banks and NZBA
Published On Jan 21, 2025

Recent developments have seen European banks reassessing their membership in the Net
Zero Banking Alliance (NZBA). This follows a wave of withdrawals by major US banks,
leading to concerns over climate collaboration and potential legal ramifications.
Executives are now contemplating their positions in light of these challenges.
What is the Net Zero Banking Alliance?
The NZBA is a UN-convened initiative. It comprises global financial institutions committed
to achieving net-zero greenhouse gas emissions by 2050. Established nearly four years
ago, it aims to align banks with global net zero targets. The alliance operates under the
UN Environment Programme Finance Initiative’s Principles for Responsible Banking.
Membership and Climate Targets
Banks joining the NZBA commit to setting emissions reduction targets. They must publicly
share these targets within 18 months and develop detailed transition plans within 12
months. Members are also required to publish sectoral targets for carbon-intensive
sectors within 36 months.
Recent Withdrawals by Major Banks
JPMorgan, Citigroup, and Goldman Sachs have recently exited the NZBA. This trend has
raised alarms among European banks, prompting them to consider similar actions.
Canadian banks have also followed suit, creating a ripple effect in the alliance.
US Political Climate and Legal Challenges
Right-wing politicians in the US have intensified their scrutiny of corporate climate
policies. Allegations of collusion against banks blocking financing for oil and gas
companies have emerged. This has led US banks to distance themselves from climate
collaborations due to fears of antitrust issues.
European Banks’ Concerns
European banks are caught between legal challenges in the US and their environmental

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commitments. Recent updates to NZBA’s guidelines require banks with capital market
activities to include emissions from these operations in their targets, adding to their
concerns.
Gfanz’s Reassessment
The Glasgow Financial Alliance for Net Zero (Gfanz) is re-evaluating its role amid
increasing political and legal pressures. The Net Zero Asset Managers initiative has ceased
tracking its membership criteria, indicating broader uncertainty within climate-focused
alliances.
Future Meetings and Uncertainties
Efforts to convene a Gfanz meeting have faced hurdles due to scheduling conflicts and
political distractions. The group aims to meet in February to discuss the future of climate
collaboration. Despite achieving initial goals, the ongoing political and legal pressures
pose challenges ahead.[no_toc]
India’s Economic Growth Surge
Published On Jan 21, 2025

India is poised to remain the fastest-growing major economy, with a projected growth
rate of 6.7% for fiscal years 2026 and 2027. This growth outstrips the global average of
2.7% and reflects the country’s robust services sector and revitalised manufacturing base.
Recent reports from the World Bank and the International Monetary Fund highlight India’s
potential amid a global economic landscape marked by slower growth in other regions.
World Bank Projections
The World Bank’s Global Economic Prospects report forecasts India’s growth at 6.7% for
FY26 and FY27. This positions India as a mainstay of global economic stability. The report
emphasises the importance of government initiatives in driving growth.
IMF
The International Monetary Fund’s World Economic Outlook aligns with the World Bank,
predicting 6.5% growth for India in both 2025 and 2026. This consistency showcases
India’s stable economic fundamentals despite global uncertainties.
Key Growth Drivers
India’s growth is supported by a thriving services sector and a strengthening
manufacturing base. Government reforms in infrastructure and taxation are very
important. Initiatives like PM GatiShakti and the Production Linked Incentive (PLI) Scheme
are crucial for enhancing productivity.
Private Consumption and Investment
Private consumption is expected to rise due to a stronger labour market and improved
credit access. Investment growth remains strong, driven by rising private investments and
favourable financing conditions.
Emerging Markets Contribution
Emerging markets and developing economies now contribute 45% of global GDP, up from
25% in 2000. India, along with China and Brazil, accounts for about 60% of global growth

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since the turn of the century.

Government Schemes and Reforms
Visionary government schemes are transforming India’s economy. Programs like Startup
India and infrastructure projects are encouraging innovation and enhancing
manufacturing capabilities.
Inclusive Growth Commitment
India’s economic strategy focuses on inclusive growth and innovation. The nation is
committed to building a resilient and globally competitive economy through forward-
thinking policies and digital transformation.
Global Economic Context
While India thrives, the global economy is projected to grow at only 2.7% in 2025-26.
Emerging markets face challenges in achieving substantial growth and income catch-up
with advanced economies.
Future Outlook
India’s trajectory suggests a commitment to sustained growth and resilience. The
combination of strategic reforms, infrastructure development, and a focus on
entrepreneurship positions India for continued prominence on the global stage.[no_toc]
India's GDP Growth Projections
Published On Jan 20, 2025

Recent estimates indicate a real GDP growth of 6.4% for India in the fiscal year 2024-25,
falling short of earlier predictions. This slowdown has raised concerns about the
government’s capital expenditure and its impact on future economic performance. The
projections for the upcoming fiscal year suggest a reliance on domestic demand and
increased government investment to stimulate growth.
Current GDP Estimates
The First Advance Estimates show a real GDP growth of 6.4% and nominal GDP growth of
9.7% for 2024-25. This is below the Reserve Bank of India’s revised estimates of 6.6% and
10.5%, respectively. Growth is expected to improve slightly in the second half of the year.
Sectoral Performance
The manufacturing sector has seen decline, with growth dropping from 9.9% in 2023-24 to
just 5.3% in 2024-25. This has contributed to the overall dip in GDP growth.
Investment Trends
Gross Fixed Capital Formation has stabilised around 33.4% from 2021-22 to 2024-25. A
continuation of this rate is anticipated for 2025-26, with a projected real GDP growth of
6.5%.
Government Capital Expenditure
Government capital expenditure has been negative at -12.3% for the first eight months of
the fiscal year. Current expenditure stands at ₹5.14 lakh crore, only 46.2% of the budget
target.

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Future Growth Prospects

The International Monetary Fund projects a steady real GDP growth rate of 6.5% for India
from 2025-26 to 2029-30. This growth may be accompanied by inflation around 4%,
leading to nominal GDP growth of 10.5%-11%.
Challenges Ahead
Achieving a sustained growth rate of 6.5% will be challenging as the economic base
expands. Increased government investment is crucial to stimulate private
investment.[no_toc]
Rupee's Real Effective Exchange Rate (REER)
Published On Jan 20, 2025

Recently, the Real Effective Exchange Rate (REER) of the Indian rupee decreased to 107.20
from a peak of 108.14 in November. This change reflects the rupee’s ongoing volatility
amidst global economic shifts, including foreign portfolio investor outflows and
fluctuating US Treasury yields. The REER serves as a critical indicator of India’s trade
competitiveness against other currencies.
What is Real Effective Exchange Rate (REER)?
REER measures a currency’s value against a weighted average of several foreign
currencies, adjusted for inflation.
It indicates international competitiveness.
A higher REER suggests reduced export competitiveness and increased import
affordability.
REER is calculated by averaging bilateral exchange rates and weighting them
according to trade volume. The formula can vary, but it typically reflects the relative
importance of each trading partner’s currency.
REER does not account for factors like tariffs or price changes that can affect trade. It
primarily reflects currency value rather than comprehensive trade dynamics.
Recent Trends in the Rupee
The rupee depreciated by approximately 3% against the US dollar in 2024.
In December, it fell by 1.31%.
The dollar index rose by 2.75% to 108.48, reflecting a stronger dollar amidst global
economic conditions.
Factors Influencing REER
Heavy foreign portfolio investor outflows and a widening trade deficit contributed to the
rupee’s decline. The US Federal Reserve’s unexpected rate adjustments also impacted
investor confidence and currency value.
Reserve Bank of India’s Actions
In November, the Reserve Bank of India sold a record $20.2 billion in the spot market to
stabilise the rupee. Despite these interventions, the rupee continued to face downward
pressure, with net short positions in the forward market increasing.

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Future Projections
Economists predict further depreciation of the rupee, estimating a potential decline of
20-30 paise. This projection considers external market conditions and inflation
differentials with major trading partners.[no_toc]
Interest Equalisation Scheme Extension
Published On Jan 18, 2025

The Indian Commerce Ministry is advocating for a further extension of the Interest
Equalisation Scheme (IES) in the upcoming Budget. This initiative aims to boost export
activities amid ongoing global economic challenges. The scheme, which provides financial
support to exporters, is set to expire soon, and stakeholders are urging its continuation to
maintain competitiveness in international markets.
Background of the Scheme
The Interest Equalisation Scheme was launched on April 1, 2015. Initially valid for five
years, it aimed to support exporters by providing pre- and post-shipment rupee export
credit at lower interest rates. The scheme was extended multiple times, including during
the COVID-19 pandemic.
Current Status
As of December 31, 2024, the scheme is scheduled to end. The government has disbursed
Rs 2,641.28 crore from an allocated budget of Rs 2,932 crore for the period from April
2023 to November 2024.
Financial Benefits
Exporters receive a 2% interest equalisation benefit on rupee export credit for 410
identified tariff lines. MSME manufacturer exporters benefit from a higher rate of 3%. The
cap for individual exporters has been raised to Rs 50 lakh per annum per Import Export
Code (IEC).
Implementation and Monitoring
The Reserve Bank of India (RBI) administers the scheme through public and private banks.
The Directorate General of Foreign Trade (DGFT) and RBI jointly monitor the scheme’s
implementation and effectiveness.
Export Sector Impact
The scheme targets various sectors, including handicrafts, leather, and textiles, enhancing
their international competitiveness. Exporters argue that the IES is crucial for maintaining
market presence against countries like China, where interest rates are lower.
Future Prospects
The Commerce Ministry is expected to propose a budget extension for the IES to ensure
continued support for exporters. The Federation of Indian Export Organisation (FIEO)
advocates for this extension, denoting its importance in turbulent economic
times.[no_toc]
RINL Revival Package Announced
Published On Jan 18, 2025

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Recently, the Government of India announced revival package for Rashtriya Ispat Nigam
Ltd (RINL), a state-owned steel manufacturer facing severe financial difficulties. The
₹11,440 crore package aims to restore the company’s operations and safeguard
thousands of jobs amid political pressure and economic challenges.
Background of RINL
RINL, also known as Vizag Steel, is located in Vishakhapatnam, Andhra Pradesh. It has a
production capacity of 7.3 million tonnes per annum. The plant operates three blast
furnaces, with two currently in operation. RINL has been struggling financially, reporting a
negative net worth and debt.
Details of the Revival Package
The revival package includes ₹10,300 crore as equity infusion and ₹1,140 crore as working
capital. The working capital will be converted into non-cumulative preference shares
redeemable after ten years. This financial support is one of the largest in the recent
history of Indian public sector undertakings.
Political Influence and Support
The push for the package was led by Andhra Pradesh Chief Minister N. Chandrababu
Naidu and Union Steel Minister H. D. Kumaraswamy. Their political alliances were crucial
in persuading the central government to approve the financial support, which was seen as
a commitment to the people of Andhra Pradesh.
Impact on Employment
The revival of RINL is expected to protect the jobs of approximately 30,000 to 35,000
workers, including both permanent and contractual staff. The financial support aims to
stabilise the company and ensure job security for its employees.
Financial Challenges Faced by RINL
As of March 2024, RINL had a debt exceeding ₹25,000 crore and was defaulting on loan
repayments. Current liabilities were higher than current assets, indicating severe financial
strain. The new capital infusion is intended to address these operational challenges.
Future Prospects
The revival package aims to enhance capacity utilisation to nearly 92.5% over the next
18-24 months. A second tranche of funding may be considered based on RINL’s
performance post-infusion. The operationalisation of all three blast furnaces is a key goal
of the revival efforts.
Conclusion of Events
The approval of the RINL revival package marks important step in addressing the
challenges faced by the steel manufacturer. The collaboration between state and central
government officials marks the importance of political support in reviving struggling
public sector enterprises.[no_toc]
India in QS World Future Skills Index
Published On Jan 17, 2025

Recently, India has been recognised as the second most prepared job market globally,

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following the United States, according to the QS World Future Skills Index. This inaugural
index evaluates countries based on their readiness for future job demands, particularly in
key sectors such as Artificial Intelligence, digital, and green industries. India’s strong
performance marks both its potential and the challenges it faces in aligning education
with industry needs.
QS World Future Skills Index
The index assesses countries on four main indicators – Skills Fit, Academic Readiness,
Future of Work, and Economic Transformation. India ranks 25th overall but excels in the
Future of Work category, scoring 99.1, just behind the US.
Key Strengths of India
India is noted for its robust GDP growth, youthful population, and vibrant start-up culture.
It is identified as the most prepared nation alongside Mexico for recruiting in digital roles,
showcasing its strong potential in emerging job markets.
Challenges in Higher Education
Despite its strengths, India faces challenges in higher education and industry
collaboration. There is a need to enhance partnerships between educational institutions
and industries to better equip graduates with in-demand skills.
Innovation and Sustainability Issues
India scored low on Future-Oriented Innovation and Sustainability metrics, indicating a
need for improvement in sustainable practices and innovative solutions. Addressing these
areas is crucial for long-term growth.
Demographic Advantage
India’s youthful demographic is asset, providing a dynamic workforce ready for future
challenges. This contrasts with many countries facing ageing populations, positioning
India favourably for growth in various sectors.
Recommendations for Improvement
To unlock its full potential, India must focus on deeper integration between education and
industry, encourage innovation, and expand access to higher education across diverse
regions. These steps are essential for preparing a future-ready workforce.
Future Outlook
India’s ranking in the QS index marks its capability to prepare for the future job market.
With continued efforts in education, sustainability, and innovation, India is poised to
become a leader in digital, AI, and green sectors.[no_toc]
RBI Introduces Daily VRR Auctions
Published On Jan 17, 2025

In move to manage liquidity, the Reserve Bank of India (RBI) has announced daily variable
rate repo (VRR) auctions. This decision comes amid a liquidity deficit exceeding ₹2 trillion
in the banking system. The auctions aim to alleviate the tight liquidity conditions,
particularly with upcoming goods and services tax (GST) outflows.

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Daily VRR Auctions

The RBI will conduct VRR auctions every working day in Mumbai. The initial amount for
these auctions is set at approximately ₹50,000 crore. Reversals will occur the next working
day, except for Fridays, when it will be on the following Monday.
Current Liquidity Situation
The banking system’s liquidity deficit has been recorded at ₹2.09 trillion recently. This
situation is expected to worsen with GST outflows anticipated later in the month.
Impact on Banks
Banks have shown reluctance in previous VRR auctions, viewing them as temporary
measures. They bid only ₹3,980 crore against a notified amount of ₹75,000 crore,
indicating cautious participation.
What is Variable Repo Rate?
The variable repo rate is a lending rate set by the RBI that adjusts based on
economic conditions.
It directly influences the interest rates banks charge on loans.
A higher repo rate increases borrowing costs, while a lower rate reduces them.
Benefits of Variable Repo Rate
The variable repo rate provides transparency for borrowers, aligning loan costs with
market conditions.
It helps control inflation and promotes economic stability, allowing for potential
savings when rates decrease.
Home loan borrowers linked to the variable repo rate will see fluctuations in their
EMIs based on rate changes. A drop in the repo rate leads to lower payments, while
an increase raises costs, affecting financial planning.
RBI’s Future Actions
The RBI may consider further measures, such as a cash reserve ratio cut, to ensure
durable liquidity. The focus is currently on liquidity management rather than rate cuts.
Participating Entities
Eligible participants for the VRR auctions include standalone primary dealers. Their
involvement is crucial for the effectiveness of the liquidity management strategy.
Monitoring Economic Indicators
The RBI will assess various economic indicators, including the Consumer Price Index, to
inform its decisions on repo rate adjustments. Global economic trends will also play a role
in these considerations.
Upcoming Challenges
The banking system is expected to face tight liquidity conditions until the end of March.
The RBI’s ongoing measures aim to provide assurance to market participants during this
challenging period.[no_toc]
FEMA Regulations Update 2025
Published On Jan 17, 2025

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Recently, changes to the Foreign Exchange Management Act (FEMA) were implemented to
facilitate cross-border transactions in Indian rupees (INR) and other foreign currencies.
The Reserve Bank of India (RBI), in collaboration with the government, introduced these
amendments amid increasing pressure on the rupee, driven by global economic factors.
The reforms aim to enhance international trade and investment opportunities for Indian
exporters and foreign investors.
Overview of FEMA
FEMA was enacted in 1999 to replace the Foreign Exchange Regulation Act (FERA).
Its primary goal is to promote external trade and maintain a stable foreign exchange
market in India.
The act regulates all foreign exchange transactions, including the acquisition,
holding, and settlement of foreign currency.
FEMA violations are treated as civil offences, with penalties imposed for non-
compliance.
The Enforcement Directorate oversees the implementation and enforcement of
FEMA regulations to combat economic crimes.
Recent Changes to FEMA
The RBI revised FEMA regulations to allow residents outside India to use repatriable INR
accounts for foreign investments, including foreign direct investment (FDI). This move
aims to boost the use of INR in global transactions.
Special Rupee Vostro Account (SRVA)
Introduced in July 2022, the SRVA facilitates trade in INR by enabling foreign banks to
settle transactions with Indian banks. This arrangement has led to several foreign banks
establishing SRVAs, promoting the rupee’s role in international trade.
Currency Accounts for Exporters
Indian exporters can now open foreign currency accounts abroad to manage trade
transactions. This allows them to receive export proceeds and pay for imports more
efficiently, enhancing their global competitiveness.
Cross-Border Currency Transactions
The revised regulations permit cross-border transactions in all foreign currencies,
including local currencies of trading partners. This flexibility aims to simplify international
trade and reduce dependence on the dollar.
International Collaborations
The RBI has signed Memorandums of About (MoUs) with central banks in the UAE,
Indonesia, and the Maldives to encourage cross-border transactions in local currencies.
These collaborations are part of a broader strategy to enhance financial integration.
Impact on Foreign Investment
The changes to FEMA are expected to attract more foreign investment into India by
providing clearer guidelines and greater flexibility for investors. This could lead to
increased economic growth and development in various sectors.[no_toc]

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Why Union Budget is Presented on February 1?

Published On Jan 15, 2025

The Union Budget of India is presented annually, specifically on February 1 since 2017.
This date allows the government to make necessary financial adjustments before the fiscal
year begins in April. Finance Minister Nirmala Sitharaman will outline India’s financial
trajectory for the upcoming year. The change to February 1 ended a long-standing
colonial practice.
Historical Context of Budget Presentation
Previously, the Union Budget was presented on the last working day of February.
This tradition persisted since colonial times.
The shift to February 1 was initiated by then Finance Minister Arun Jaitley in 2017.
The rationale behind this change was to provide the government with more time to
implement financial adjustments before the new fiscal year.
Reasons for Changing the Budget Date
The primary reason for moving the budget presentation date was to end a colonial-
era practice.
Additionally, it allowed the government a longer period to implement necessary
changes.
The previous timing left little room for adjustments, which could impact effective
governance.
Changes in Presentation Timing
The historical timing for presenting the budget was at 5 pm. This practice was altered in
1999 by Finance Minister Yashwant Sinha, who moved the presentation to 11 am. The shift
was made to align with Indian time zones and to move away from colonial traditions that
favoured British time.
Constitutional Provisions of the Union Budget
According to Article 112 of the Constitution of India, the Union Budget is known as the
Annual Financial Statement. The Constitution does not explicitly mention the term
“budget.” Key documents associated with the budget include the Annual Financial
Statement, Demands for Grants, and the Finance Bill.
Key Budget Documents
The Union Budget comprises several important documents. These include the Annual
Financial Statement, which outlines estimated receipts and expenditures. The Finance Bill
contains taxation proposals. Additional documents provide detailed explanations of the
budget’s provisions and implementation strategies.
Budget Preparation and Classification
The Department of Economic Affairs is responsible for preparing the Union Budget. The
budget is classified into two main categories – the Revenue Budget and the Capital
Budget. The Revenue Budget includes expected income from taxes, while the Capital
Budget focuses on expenses related to government assets and infrastructure

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development.
Parts of the Union Budget
The Union Budget consists of two main parts. Part A includes the macroeconomic section,
which announces government schemes and priorities. Part B involves the Finance Bill,
which outlines taxation proposals, including revisions to income tax.

1. Arun Jaitley initiated the February 1 budget date change.

2. The Railway Budget merger aimed to improve financial health.
3. The budget presentation time changed from 5 pm to 11 am in 1999.
4. Article 110 defines a Finance Bill as a Money Bill.
5. The Union Budget is classified into Revenue and Capital Budgets.

[no_toc]
CII's 10-Point Agenda for Ease of Doing Business
Published On Jan 14, 2025

The Confederation of Indian Industry (CII) has revealed a 10-point agenda aimed at
enhancing the Ease of Doing Business (EoDB) in India ahead of the 2025-26 Budget. This
initiative puts stress on the need for transparency, speed, and a reduction in compliance
burdens across various regulatory frameworks.
1. Mandatory Use of NSWS for Approvals
CII proposes that the National Single Window System (NSWS) be made mandatory for all
regulatory approvals. This integration should occur within six months for central
ministries, followed by states in a phased approach. A dedicated budget should incentivise
states to adopt NSWS, promoting transparency and efficiency in processing applications.
2. Time-Bound Services with Statutory Backing
A new Act is recommended to enforce statutory obligations on public authorities. This Act
would mandate the timely processing of industry applications and grievances. Provisions
for “deemed approvals” beyond deadlines are also suggested to ensure accountability.
3. Strengthening Dispute Resolution Mechanisms
CII advocates for the expansion of commercial courts and increased use of Alternative
Dispute Resolution (ADR) methods. Establishing the Mediation Council of India and the
Arbitration Council of India is a priority to expedite dispute resolution.
4. Expanding the National Judicial Data Grid (NJDG)
The NJDG should encompass tribunal cases to effectively manage and reduce backlog.
Tribunals represent portion of unresolved cases, necessitating their inclusion in the data
grid for better oversight.
5. Unified Environmental Compliance Framework
CII calls for a single framework to consolidate environmental compliance. Existing laws,
such as the Water Act and Air Act, should be integrated into the Environmental Protection
Act. Performance-based incentives could encourage companies to exceed environmental
standards.

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6. Facilitating Land Access

States should create an Online Integrated Land Authority to streamline land records. This
initiative would digitise land banks and provide information on disputes. The India
Industrial Land Bank (IILB) should evolve into a National Level Land Bank with support
from the central budget.
7. Simplified Labour Compliances
The implementation of the four Labour Codes is crucial for easing compliance burdens.
The Shram Suvidha Portal should serve as a centralised platform for all labour law
compliance, covering both central and state levels.
8. Improving Trade Facilitation
CII suggests simplifying the Authorized Economic Operator (AEO) programme. Enhanced
benefits such as extended duty payment periods and self-declared renewals should be
introduced, particularly to support Micro, Small, and Medium Enterprises (MSMEs).
9. Aligning Metrology Rules with Global Standards
Synchronising legal metrology rules with international standards is essential. Equipment
imported from OIML-certified labs should be exempt from additional approval processes,
streamlining trade operations.
10. Addressing Tax Dispute Pendency
CII urges the government to tackle income tax litigation by reducing cases at the
Commissioner of Income Tax (Appeals) level. Improving ADR mechanisms like Advance
Pricing Agreements and Dispute Resolution Schemes is vital for unclogging the system.

1. NSWS – National Single Window System for approvals.

2. ADR – Alternative Dispute Resolution methods for quicker resolutions.
3. IILB – India Industrial Land Bank for land management.
4. AEO – Authorized Economic Operator programme for trade facilitation.
5. OIML – International Organisation of Legal Metrology for global standards.

[no_toc]
India's Higher Education Crisis
Published On Jan 13, 2025

India’s higher education system faces challenge. A recent report indicates that 80% of
graduates are unfit for industry roles. With around 50 million graduates entering the job
market annually, this statistic raises concerns about the education system’s quality and
relevance. While technology often captures attention, most graduates find employment in
sectors such as services, construction, retail, and healthcare.
Current Employment Landscape
The Indian workforce predominantly consists of graduates from various sectors. The
personal grooming industry alone requires approximately 1.3 million professionals each
year. In contrast, the software industry adds only 300,000 to 400,000 jobs annually. This
disparity marks the need for education to align with industry demands.

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Skills Gap and Curriculum Issues

Critics argue that the education system focuses too heavily on theory. Graduates often
lack practical skills and industry relevance. To address this, universities are beginning to
incorporate experiential learning, internships, and soft skills training. Government
initiatives like the National Education Policy (NEP) 2020 aim to modernise education and
improve employability.
Impact of Online Learning
The shift towards online learning has transformed India’s educational landscape.
Regulatory bodies such as the UGC and AICTE are integrating online courses into
curricula. While this enhances accessibility, it diminishes the traditional teacher-student
relationship. The lack of personal mentorship can hinder students’ emotional and
academic growth.
Commercialisation of Education
The increasing commercialisation of education poses additional challenges. Online
tutoring and courses often replace the nurturing environment provided by dedicated
teachers. This shift can lead to a lack of skilled graduates, impacting India’s economic
competitiveness and innovation capacity.

1. NPTEL – National Programme on Technology Enhanced Learning.

2. NEP 2020 – National Education Policy 2020 aims to reform education.
3. AICTE – All India Council for Technical Education.
4. UGC – University Grants Commission oversees higher education.
5. SWAYAM – Online platform for higher education courses.

Teacher Development and Support

To revitalise the education system, prioritising teacher training is essential. Investing in
quality teaching and creating a supportive environment can enhance student outcomes.
Improved working conditions and compensation for teachers can motivate them to
inspire students effectively.
Global Comparisons and Lessons
Examining other countries reveals important lessons. Nations like Argentina and Greece,
despite having highly educated populations, face unemployment and economic
stagnation. To prevent similar issues, India must focus on building strong teacher-student
relationships and encouraging a culture of mentorship.
Future Directions for Education
India’s educational future hinges on balancing technological advancements with the
human element. The NEP 2020 represents progress, but continued investment in teacher
development is crucial. Empowering educators can ensure that students not only acquire
knowledge but also develop essential skills for success in the 21st century.[no_toc]
World Economic Situation and Prospects Report 2025
Published On Jan 11, 2025

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The Indian economy is projected to grow by 6.6 per cent in 2025, according to the United
Nations’ World Economic Situation and Prospects report. This growth is supported by
strong private consumption and investment. The report maintains its previous growth
forecast, reflecting confidence in India’s economic resilience. The public sector plays
important role in funding infrastructure projects. These projects enhance physical and
digital connectivity and improve social infrastructure, including sanitation and water
supply.
Infrastructure Investment and Economic Impact
The UN report emphasises the importance of capital expenditure on infrastructure. Such
investment is expected to yield strong multiplier effects on economic growth.
Infrastructure development is crucial for enhancing productivity across various sectors.
The manufacturing and services sectors are anticipated to expand, contributing to overall
economic activity. Strong export growth in service industries and specific goods
categories, such as pharmaceuticals and electronics, will further stimulate the economy.
Agricultural Growth Expectations
Favourable monsoon rains in 2024 have positively impacted agricultural output. Improved
summer-sowing areas for major crops are expected to boost production in 2025.
Agricultural growth will contribute to the overall economic performance of India.
Enhanced agricultural productivity can support rural incomes and consumption.
Regional Economic Outlook
The economic growth forecast for South Asia remains robust, primarily driven by India.
The region is projected to grow at 5.7 per cent in 2025 and 6 per cent in 2026. India’s
performance is crucial for the region’s overall economic health. The interconnected nature
of economies in South Asia amplifies the impact of India’s growth on its neighbours.
Risks to Economic Growth
Despite positive growth projections, several risks threaten the outlook. Possible escalation
of geopolitical tensions could disrupt economic stability. A deceleration in external
demand may negatively impact exports. Ongoing debt challenges and potential social
unrest could hinder progress. Additionally, the region’s vulnerability to climate hazards
poses risks to sustained growth.

1. António Guterres is the UN Secretary-General.

2. The Reserve Bank of India (RBI) projected 6.6% growth for 2024-25.
3. South Asia’s growth is heavily reliant on India’s economic performance.
4. The agricultural output is expected to improve due to favourable monsoon rains.
5. Infrastructure investment is linked to strong multiplier effects on growth.

Conclusion on Economic Resilience

The Indian economy’s resilience is evident in the face of global challenges. The
commitment to infrastructure development and strong sectoral performance will be vital
for future growth.[no_toc]

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Startups Return to India Post Angel Tax Abolition

Published On Jan 11, 2025

The recent abolition of the angel tax in India has sparked a wave of optimism among
startups. Many companies are relocating their headquarters back to India, encouraged by
government initiatives aimed at improving the ease of doing business. The decision, part
of the FY25 Budget, has been instrumental in reversing the trend of startups registering
abroad for better tax advantages. The Department for Promotion of Industry and Internal
Trade (DPIIT) has reported uptick in the number of startups returning to the country.
About Angel Tax
Angel tax, formally known as Section 56(2)(viib) of the Income Tax Act, was introduced in
2012. It aimed to curb tax avoidance and money laundering by taxing the difference
between the fair market value (FMV) of shares and the price at which closely held
companies issued them. This provision was often seen as a deterrent for startups, leading
many to seek registration in foreign jurisdictions.
Impact of Abolishing Angel Tax
The removal of angel tax has led to a wave of “reverse flipping,” where startups that
initially registered abroad are now returning to India. The DPIIT has indicated that this
change is positively impacting the equity market. The Ministry of Corporate Affairs is
expediting processes to facilitate these transitions, making it easier for startups to operate
in India.
Growth of Startups in India
Since the launch of the Startup India initiative in 2016, the number of registered startups
has surged to over 157,000 by the end of 2024. In terms of funding, startups received
$155 billion in 2024, increase from just $8 billion in 2016. This growth has also led to the
creation of over 1.7 million jobs across the country, showcasing the vital role startups play
in the Indian economy.
International Collaborations and Opportunities
Countries like Saudi Arabia have shown interest in Indian startups, particularly in events
such as the Startup Mahakumbh. The DPIIT is actively pursuing collaborations that allow
foreign sovereign pension funds to invest in Indian startups. This strategy aims to create a
global network where startups can address international challenges, thereby enhancing
their visibility and potential for growth.
Promoting Manufacturing Startups
To boost manufacturing startups, the DPIIT has engaged large companies to identify
products they can procure from startups. This initiative seeks to create a symbiotic
relationship between established firms and emerging startups, encouraging innovation
and economic growth.

1. The term “reverse flipping” refers to startups returning to India from abroad.
2. Startup India initiative was launched in 2016 to boost entrepreneurship.
3. The Centre’s Fund of Funds Scheme (FFS) supports startups with a corpus of Rs
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10,000 crore.
4. DPIIT reported over 1.7 million jobs created by startups as of 2024.
5. Angel tax was introduced in 2012 to combat tax avoidance through inflated
valuations.

Future Meetings with Alternate Investment Funds

Ahead of the ninth anniversary of the Startup India programme, the DPIIT is convening
with alternate investment funds (AIFs) to discuss startup funding. The meeting aims to
address capital mobilisation and funding opportunities for startups in smaller cities.
Approximately 75 AIFs are expected to participate, denoting the growing interest in
supporting the startup ecosystem in India. The Centre’s Fund of Funds Scheme (FFS) is a
key component of this initiative, providing financial backing to Sebi-registered AIFs, which
in turn invest in startups.[no_toc]
ICEGATE and Trade Data Challenges
Published On Jan 11, 2025

Recent developments in India’s trade data management have brought into light changes
in the way import and export statistics are compiled. The shift from the SEZ Online System
to ICEGATE (Indian Customs Electronic Gateway) has raised concerns about data accuracy,
particularly regarding double counting. This migration began in May 2024 and aimed to
streamline the accounting of imports, especially those entering Special Economic Zones
(SEZs). However, technical glitches have complicated this process, leading to discrepancies
in reported trade figures.
About ICEGATE and SEZ Online System
ICEGATE is the national portal of the Central Board of Indirect Taxes and Customs (CBIC).
It records imports at non-SEZ ports. The SEZ Online System was previously used
exclusively for over 100 SEZs. Both systems transmitted separate data to the Directorate
General of Commercial Intelligence and Statistics (DGCIS) for foreign trade statistics. The
transition to ICEGATE aimed to unify these processes.
Migration Process and Challenges
The migration process involved transferring data from the SEZ Online System to ICEGATE.
This change meant that ICEGATE began accounting for imports into SEZs. However, the
old system did not automatically transfer Bills of Entry for imports into the Domestic Tariff
Area (DTA). This led to ICEGATE not distinguishing between imports into SEZs and those
from SEZs into DTAs.
Double Counting Issues
Double counting arose because ICEGATE treated movements of goods from abroad to
SEZs and from SEZs to DTAs as separate transactions. As a result, goods that were
imported into SEZs and then moved to DTAs were recorded multiple times. For instance, if
100 units were imported into an SEZ and 90 units were subsequently sent to a DTA,
ICEGATE would count both transactions independently, inflating import figures.

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The Role of Customs Duties

For customs purposes, the movement of goods from DTAs to SEZs is considered an
export. This distinction is crucial for the accurate assessment of customs duties. Goods
manufactured in SEZs often undergo value addition in DTAs before returning to the SEZs.
Therefore, it is essential to track these movements accurately to avoid misrepresentation
in trade data.
Ongoing Improvements and Future Prospects
The Government of India is currently working on upgrading ICEGATE’s digital
infrastructure. This upgrade aims to enhance the efficiency and speed of import counting.
While the migration to ICEGATE is ongoing, both SEZ Online and ICEGATE continue to
capture and transmit exclusive EXIM data. The goal is to resolve these discrepancies and
improve the overall accuracy of trade data reporting.

1. ICEGATE was established to streamline customs procedures.

2. SEZs are treated as foreign entities for customs duty purposes.
3. Technical glitches have delayed the complete migration to ICEGATE.
4. Goods imported into SEZs can be exempt from duty if used there.
5. ICEGATE’s upgrade aims to resolve data counting issues.

Implications for Trade Data Accuracy

The issues surrounding double counting and data discrepancies tell the need for accurate
trade data management. As India continues to adapt its systems, the focus will remain on
ensuring that trade statistics reflect the true dynamics of imports and exports.[no_toc]
India's GDP Growth Forecast for FY25
Published On Jan 09, 2025

India’s Real Gross Domestic Product (GDP) growth is projected to reach a four-year low of
6.4 per cent for the financial year 2024-25. This estimate, released by the National
Statistics Office (NSO), reflects challenges in industrial and investment sectors. The
prediction falls short of the Reserve Bank of India’s growth estimate of 6.6 per cent and
the government’s range of 6.5-7 per cent as outlined in the Economic Survey 2023-24. The
first advance estimates are derived from data collected during the initial months of FY25
and aim to assist in the formulation of the upcoming Union Budget.
About GDP Growth Estimates
GDP growth estimates are crucial for economic planning. The NSO releases advance
estimates to guide government departments in budget preparation. The current estimate
indicates a slowdown influenced by various factors, including weak industrial performance
and investment growth.
Key Contributors to Economic Slowdown
Several factors contribute to the anticipated GDP slowdown. These include a strong base
effect from previous years, the impact of general elections, subdued private sector capital
expenditure, and tightening monetary and fiscal policies. Analysts believe these elements

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have collectively led to the cyclical slowdown observed in the economy.

Sectoral Growth
The first advance estimates reveal a marked slowdown in the primary and secondary
sectors, excluding agriculture. Manufacturing Gross Value Added (GVA) is expected to
decline to 5.3 per cent from 9.9 per cent in the previous year. Mining and quarrying
growth is projected at 2.9 per cent, lower than the 7.1 per cent recorded in FY24.
Consumption and Investment Trends
Consumption demand is expected to rise by 7.3 per cent, up from 4 per cent last year.
However, investment growth is forecasted at 6.4 per cent, a decline from the previous
year’s 9 per cent. This disparity marks the challenges in stimulating corporate investments
despite improved consumption.
Performance of the Services Sector
The services sector is anticipated to perform relatively well, with growth estimated at 7.2
per cent compared to 7.6 per cent in FY24. Public administration, defence, and other
services are projected to grow by 9.1 per cent, showcasing resilience in this sector amidst
broader economic challenges.
Government Expenditure Impact
Government Final Consumption Expenditure (GFCE) is set to increase by 4.1 per cent, up
from 2.5 per cent in the previous year. This rise in government spending is expected to
support overall economic growth, despite the subdued investment climate.

1. GVA reflects national income derived from production.

2. The base effect refers to the impact of previous year’s growth on current
performance.
3. Fiscal deficit is the difference between government expenditure and revenue.
4. The Reserve Bank of India regulates monetary policy in India.
5. Advance estimates are preliminary figures released before final data.

Future Economic Outlook

Looking ahead, private consumption is projected to increase in the second half of FY25,
driven by rural demand due to strong agricultural output. However, investment growth
may remain stagnant, indicating ongoing challenges in stimulating economic activity.
Urban demand has weakened, influenced by slower wage growth, suggesting a need for
targeted economic strategies.[no_toc]
Kandla Port Capacity Expansion Announced in 2025
Published On Jan 08, 2025

In January 2025, developments were announced for Kandla Port, aiming to enhance its
capacity and operational capabilities. This initiative aligns with Prime Minister Narendra
Modi’s vision of ‘Make in India, Make for the World’, focusing on boosting domestic
manufacturing and global trade.

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Key Facts About Kandla Port

The port was established in 1931 with the construction of an RCC Jetty by Maharao
Khengarji.
It is also known as Deendayal Port
This port is situated on the West Coast of India in the Gulf of Kutch, Gujarat.
It is one of the twelve major ports in India.
It serves northern states like Jammu & Kashmir, Uttar Pradesh, Madhya Pradesh, and
Rajasthan.
It is ranked as India’s No. 1 Port in 2007-08 and has maintained this position for 14
consecutive years.
In 2016, it became the first Major Port in India to handle 100 million metric tonnes
(MMT) of cargo in a single year.
It is currently the largest port in India by cargo volume.
Investment Overview
The total investment for Kandla Port’s expansion exceeds ₹57,000 crores. This includes
₹30,000 crores for the Mega Shipbuilding Project and ₹27,000 crores for a new cargo
terminal. These projects aim to modernise the port infrastructure and increase its capacity
.
New Mega Shipbuilding Facility
The Mega Shipbuilding Facility will focus on constructing Very Large Crude Carriers
(VLCCs) with a capacity of up to 3,20,000 tonnes DWT. It will produce 32 new ships
annually and repair 50 existing vessels. The facility will span over 8,000 acres,
incorporating various components such as a marina, fishing harbour, townships, and a
marine industrial cluster.
New Cargo Terminal Development
A new cargo terminal will be developed outside Kandla creek, adding 135 MTPA to the
port’s capacity. This terminal will handle existing dry bulk cargo operations and will
feature modern cargo handling equipment. The new infrastructure will facilitate more
efficient evacuation systems and enhance the port’s capabilities.
Impact on Liquid Cargo Handling
The expansion will convert existing jetties to handle liquid cargo, improving turnaround
times for liquid tanker vessels. The proximity of the new port to navigation channels will
reduce dredging needs, allowing larger vessels to dock efficiently.
Broader Economic Implications
The initiatives at Kandla Port are expected to create numerous job opportunities,
especially in ancillary manufacturing and assembly sectors. This expansion is crucial for
India’s economic growth, aligning with the goal of achieving an Atmanirbhar Bharat by
2047.

1. VLCC – Very Large Crude Carrier, a large oil tanker.

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2. MTPA – Million Tonnes Per Annum, a measure of cargo capacity.

3. PPP – Public-Private Partnership, a collaborative investment model.
4. TEU – Twenty-foot Equivalent Unit, a standard measure for container capacity.
5. SBM – Single Buoy Mooring, a mooring system for tankers.

Future Projects and Developments

The Deendayal Port Authority is advancing several projects to further enhance Kandla’s
capacity. A mega cargo terminal at Tuna Tekra is under construction, aimed at handling
2.19 million TEUs. Additionally, a new Multi Cargo Terminal is being considered to add
18.33 MTPA to the existing capacity. Three new oil jetties and a Ship Repair Facility project
are also in the pipeline, aimed at boosting liquid cargo handling by an additional 34.5
MTPA.[no_toc]
Challenges in Corporate Tax and Excise Duty Collections
Published On Jan 07, 2025

Recent trends indicate that meeting Budget Estimates (BE) for Corporate Tax (CT) and
Union Excise Duty will be challenging. The Union Budget for Fiscal Year 2025-26 is set to
be presented on February 1, and revised figures for these levies will be disclosed. The
Income Tax Department has reported an actual growth rate in net Corporate Tax of
approximately 8.6 per cent, which falls short of the targeted growth rate of 10.5 per cent.
The Budget Estimate for FY25 stands at ₹10.20 lakh crore, compared to the Revised
Estimate of ₹9.23 lakh crore from FY24. Factors such as a slowdown in urban demand,
reduced government spending due to the model code of conduct, and disruptions caused
by the monsoon have adversely affected corporate profitability, impacting CT collections.
Current Economic Context
The economic landscape is influenced by various factors. The slowdown in urban demand
has raised concerns among analysts. Additionally, the model code of conduct has limited
government expenditure in the initial months of the fiscal year. Monsoon-related
disruptions have further complicated the situation. Despite these challenges, ICRA
predicts sequential revenue growth for Indian corporations in Q3 of FY2025, driven by
improved rural demand and increased government spending, especially during the festive
season.
Corporate Tax Collection Analysis
The actual collection of Corporate Tax has not met expectations in recent years. For FY24,
the BE was ₹9.23 lakh crore, but actual collection only exceeded ₹9.11 lakh crore. This
trend raises questions about the feasibility of achieving the current fiscal year’s target of
₹10.20 lakh crore. Analysts suggest that the required growth rate in the remaining
months of FY25 will be difficult to attain, given the current economic climate.
Union Excise Duty Overview
Union Excise Duty collections have also faced challenges. Data from the Controller General
of Accounts (CGA) indicates a marginal decline in collections from April to November. This
decline is attributed to the central rate cut in 2022. The structure of Excise Duty, which is
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levied on a specific rate basis for petrol and diesel, means that fluctuations in cost prices
do not impact revenue. To meet the BE, average monthly collections from December to
March must reach approximately ₹36,000 crore, a substantial increase from the average
of ₹21,000 crore during the earlier months.
Fiscal Deficit Implications
Despite the shortfalls in CT and Union Excise Duty collections, officials maintain that these
will not impact the overall fiscal deficit. Other revenue sources, including non-corporate
tax collections, securities transaction tax, and Goods and Services Tax (GST), have
performed well. Additionally, capital expenditure has remained low, providing some
cushion against the shortfalls in tax collections.

1. CT – Corporate Tax, critical for government revenue.

2. ICRA – Independent agency forecasting economic trends.
3. CGA – Controller General of Accounts, monitors government finances.
4. BE – Budget Estimate, projected revenue for the fiscal year.
5. OPM – Operating Profit Margin, a measure of profitability.

Future Outlook for Tax Collections

The future of tax collections remains uncertain. Analysts will closely monitor economic
indicators in the coming months. The festive season may provide a temporary boost, but
underlying issues such as urban demand and global uncertainties could hinder sustained
growth. The government’s approach to managing expenditures will also play important
role in shaping the fiscal landscape for the remainder of FY25.[no_toc]
Income Inequality Trends in India 2023
Published On Jan 07, 2025

Recent analysis reveals changes in income inequality in India, particularly following the
challenges posed by the Covid-19 pandemic. A working paper from the People Research
on India’s Consumer Economy (PRICE) indicates that while there has been a slight recovery
in income distribution, substantial wealth concentration persists among the highest
earners. This situation marks the need for ongoing, inclusive economic strategies to
ensure equitable growth.
About the Gini Index
The Gini index is important measure of income inequality within a population. It ranges
from 0 to 100, where 0 indicates perfect equality and 100 signifies perfect inequality. In
India, the Gini index improved from 0.506 in 2020-21 to 0.410 in 2022-23, revealing a
positive shift in income distribution. Despite this improvement, the index remains higher
than the 0.367 recorded in 2015-16, indicating ongoing disparities.
Income Distribution Post-Covid-19
The income share of the bottom 50 per cent of earners increased from 15.84 per cent in
2020-21 to 22.82 per cent in 2022-23. This group includes labourers, small traders, and
marginal farmers. However, their share is still lower than the 24.07 per cent recorded in

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2015-16. The middle 40 per cent also saw an increase in their income share, rising to 46.6
per cent in 2022-23 from 43.9 per cent previously.
Impact of the Top Income Earners
The top 10 per cent of earners in India experienced rise in their income share during the
pandemic, reaching 38.6 per cent in 2020-21. This was attributed to the digitisation of the
economy and growth in technology sectors. Although their share decreased to 30.6 per
cent in 2022-23, they still command a substantial portion of national income. The top 1 per
cent saw their income share peak at 9.0 per cent in 2020-21, before declining to 7.3 per
cent in 2022-23.
Role of Social Welfare Schemes
Social welfare initiatives have played important role in improving income distribution.
Programmes like the Mahatma Gandhi National Rural Employment Guarantee Act
(MGNREGA) and Direct Benefit Transfer (DBT) have contributed to the rise in income for
the lower segments of society. These schemes aim to provide financial support and
enhance economic stability for vulnerable populations.
Strategies for Sustainable Growth
To ensure the continued reduction of income inequality, the paper suggests investments
in education, healthcare, and infrastructure, particularly in rural areas. Progressive
taxation and robust social safety nets are also vital for equitably distributing the benefits
of economic growth. Policymakers must remain vigilant and adaptive to sustain
improvements and address disparities across all societal segments.

1. PRICE – People Research on India’s Consumer Economy.

2. MGNREGA – Mahatma Gandhi National Rural Employment Guarantee Act.
3. DBT – Direct Benefit Transfer, a government scheme for financial assistance.
4. Gini Index – A statistical measure of income distribution inequality.
5. Income share of the bottom 10% fell to 1.1% in 2020-21.

[no_toc]
RBI Mandates 15-Day Credit Score Updates
Published On Jan 07, 2025

As of January 1, 2025, the Reserve Bank of India (RBI) has implemented regulation
requiring lenders to update credit bureau records every 15 days. This change aims to
enhance the accuracy and timeliness of credit score calculations, reflecting borrowers’
financial activities more promptly. Previously, updates occurred monthly, which often
delayed the representation of loan repayments and defaults. The RBI issued this mandate
in August 2024, allowing lenders and credit bureaus time to adjust their systems
accordingly.
About Credit Scores
A credit score is a numerical representation of a borrower’s creditworthiness, ranging
from 300 to 900. Higher scores indicate a better likelihood of repaying loans. Credit

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bureaus calculate these scores based on data from lenders, including banks and credit
card companies. Key factors influencing credit scores include: – Payment History – Timely
payment of credit card and loan bills. – Credit Utilisation – Ratio of credit used to available
credit. – Credit Mix – Variety of credit types, such as mortgages and personal loans. –
Recent Credit Enquiries – Applications for new credit products.
Impact of the 15-Day Rule on Borrowers
The new 15-day reporting cycle allows for quicker updates to credit scores. Previously,
missed payments could take up to 40 days to reflect. With real-time updates, lenders will
receive more accurate information, enabling better assessments of borrowers’
creditworthiness. This change rewards responsible borrowers sooner and improves the
overall credit evaluation process.
Benefits for Lenders
Lenders will benefit from accessing current credit information more frequently. This
enables them to make informed decisions regarding personal loans. Enhanced data allows
for early detection of potential risks and encourages lenders to offer better terms to
borrowers with good repayment habits.
Addressing Credit Market Issues
The new regulation addresses several challenges in the credit market: 1. Multiple Loan
Applications – First-time borrowers often apply for multiple loans, leading to potential
repayment issues. Frequent updates will help lenders monitor borrower behaviour more
closely. 2. Preventing ‘Evergreening’ – The practice of taking new loans to pay off old ones
can create a cycle of debt. Regular updates will enable lenders to identify and manage
such situations effectively. 3. Improving EMI Management – With various EMIs due on
different dates, the previous monthly reporting system could lead to outdated data. A 15-
day cycle reduces this delay, allowing for accurate credit evaluations.
Challenges of Implementation
While the shift to a 15-day reporting system offers long-term benefits, it also presents
challenges. Lenders and credit bureaus must invest in technology upgrades to
accommodate the new requirements. Despite these challenges, the potential for
improved market efficiency and risk reduction is .

1. CRIF High Mark – A leading credit information company in India.

2. Evergreening – A cycle of debt caused by taking new loans to repay old ones.
3. EMI – Equated Monthly Instalment, a fixed payment amount made by borrowers.
4. Credit Utilisation – The ratio of credit used versus total available credit.
5. RBI – Reserve Bank of India, the central banking institution of India.

Future of Credit Reporting

The transition to 15-day updates is poised to enhance the credibility and transparency of
credit information. This change is expected to yield better loan deals for borrowers who
demonstrate disciplined repayment habits, encouraging a healthier credit market

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overall.[no_toc]
NYC Launches Congestion Pricing Initiative
Published On Jan 07, 2025

In January 2025, New York City became the first city in the United States to implement
congestion pricing. This initiative aims to alleviate traffic congestion in densely populated
areas. Drivers entering Manhattan’s central business district will incur a fee of $9 during
peak hours. In 2023, NYC experienced traffic delays, ranking among the most congested
cities globally. Similar strategies have been successfully employed in cities like Singapore,
London, Stockholm, and Milan.
What is Congestion Pricing?
Congestion pricing involves charging drivers a fee to enter busy urban areas during peak
traffic times. The goal is to reduce traffic congestion, improve air quality, and generate
revenue for public transport improvements. The system often employs electronic tolling,
allowing for efficient collection of fees.
Global Examples of Congestion Pricing
Many cities have adopted congestion pricing with varying structures. In Singapore, the
Electronic Road Pricing (ERP) charges drivers based on real-time traffic conditions. London
imposes a flat daily fee of £15 for entering the congestion zone. Stockholm’s fees fluctuate
based on time and season, while Milan charges €5 daily, with additional fees based on
vehicle emissions.
Benefits of Congestion Pricing
Implementing congestion pricing can yield multiple benefits. Cities can generate revenue,
which can be reinvested in transport infrastructure. For instance, NYC anticipates earning
$15 billion to enhance its transport systems. Environmental improvements are also
notable; cities like London and Milan have reported substantial reductions in pollution
levels since implementation.
Economic and Environmental Impacts
The Metropolitan Transportation Authority in NYC expects congestion pricing to fund vital
transport upgrades. In Singapore, the ERP programme has been financially self-sustaining
since its inception. Studies indicate that London’s air quality has improved , while Milan
has reduced carbon emissions by approximately 30%.
Enhancing Quality of Life
Congestion pricing can lead to a better quality of life for urban residents. In Stockholm,
traffic levels decreased by 25%, surpassing initial targets. Public transport users reported
improved punctuality and reduced noise levels. These changes contribute to a more
pleasant urban environment.

1. C40 Knowledge Hub – Global climate action network.

2. Eco Pass – Milan’s congestion charge system.
3. E-ZPass – Electronic toll collection system in NYC.
4. ERP – Singapore’s Electronic Road Pricing system.
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5. Gustaf Landahl – Former Stockholm city government official.

Potential for Implementation in India

Studies suggest that Indian cities, such as Mumbai, could benefit from congestion pricing.
Research by the Urban Works Institute indicates potential advantages and challenges
unique to Mumbai’s context. The report advocates for tailored solutions that consider
local traffic patterns and public transport capabilities. Effective communication and public
awareness are crucial for successful implementation.[no_toc]
Why Rupee Fell to Record Low
Published On Jan 06, 2025

In December 2024, the Indian rupee reached a record low of 85.81 against the U.S. dollar.
This decline marked a 3% depreciation over the year, continuing a long-term trend.
Various factors contribute to currency depreciation, primarily involving supply and
demand dynamics in the foreign exchange market.
Currency Value Determinants
The value of a currency is influenced by its demand and supply in the foreign exchange
market. When demand for a currency decreases, its value falls. Conversely, if demand
increases, the currency appreciates. This mechanism operates similarly to product pricing
in conventional markets, where supply and demand dictate costs.
Role of Central Banks
Central banks play a very important role in determining currency supply through their
monetary policies. A looser monetary policy increases the currency supply, potentially
leading to depreciation. In contrast, tighter monetary policies can enhance currency value
by reducing supply and increasing demand.
Foreign Demand for Goods and Assets
The demand for a currency is also influenced by foreign interest in a country’s goods and
assets. High foreign demand necessitates purchasing local currency, thereby increasing
its value. Conversely, a decline in foreign demand results in decreased currency value.
Factors Behind the Rupee’s Decline
The recent depreciation of the rupee has largely been attributed to foreign investors
withdrawing from India. This trend has been exacerbated by global monetary policy shifts
and high inflation rates in India compared to the U.S. The Reserve Bank of India’s (RBI)
looser monetary policy has made the rupee less attractive, contributing to its decline.
Impact of Inflation and Imports
India’s high inflation rates, particularly in the wake of the COVID-19 pandemic, have
pressured the rupee. The country’s reliance on high-value imports, like crude oil and gold,
increases demand for the dollar, further weakening the rupee. Additionally, the inability to
boost exports has hindered rupee demand.
RBI’s Intervention Strategies
To mitigate rupee depreciation, the RBI has intervened by using its dollar reserves. This
strategy aims to increase dollar supply in the market, supporting the rupee’s value.
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However, this intervention has led to a decrease in foreign exchange reserves, which fell
to $640 billion by late December 2024.

1. The rupee’s low of 85.81 was a historic benchmark.

2. The RBI’s reserves dropped from $700 billion in September 2024.
3. Foreign investment shifts were prompted by global monetary policy changes.
4. High inflation in India contrasts sharply with the U.S. economy.
5. The RBI aims for gradual rupee depreciation to avoid economic disruption.

Future Prospects for the Rupee

Analysts suggest that without RBI intervention, the rupee’s depreciation could have been
more severe. The ongoing economic conditions and global market shifts will continue to
influence the rupee’s performance against the dollar.[no_toc]
CCI Sets New Standards in M&A Regulations
Published On Jan 04, 2025

The Competition Commission of India (CCI) has made strides in regulatory efficiency,
particularly in the realm of mergers and acquisitions (M&A). The Annual Report for FY
2023-24 revealed that the average clearance time for mergers is now just 16 days. This
marks a notable improvement from previous years and reflects CCI’s dedication to
maintaining a competitive market while ensuring fair practices.
Green Channel Scheme Overview
The Green Channel Scheme, introduced in August 2019, has revolutionised the M&A
landscape. This scheme allows automatic approvals for combinations that do not present
horizontal, vertical, or complementary overlaps. Since its launch, 100 combination notices
have been filed under this scheme. Despite a slight decrease in usage from 27% in FY
2021-22 to 22% in FY 2023-24, it remains a preferred option for businesses seeking quick
clearance.
Pre-Filing Consultations
CCI offers pre-filing consultations to assist businesses prior to formal merger filings. This
voluntary service enables parties to engage informally with CCI, allowing them to clarify
filing forms, documentation requirements, and initial competition concerns. Although
non-binding, these consultations improve transparency, reduce filing errors, and expedite
the review process, thereby facilitating smoother regulatory compliance.
The Competition Amendment Act 2023
The Competition Amendment Act 2023 introduced a new deal value threshold for
notifying mergers and acquisitions. This amendment aims to capture high-value
transactions, particularly in digital and new-age markets. CCI’s processes remain stringent
yet efficient, ensuring thorough scrutiny of combinations that may adversely affect
competition. Proposed modifications help mitigate potential competition concerns.
Impact on Inorganic Growth Strategies
The CCI’s rapid review processes have boosted inorganic growth strategies across various

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sectors. The reduced timelines, alongside the Green Channel initiative, have alleviated
regulatory uncertainty, empowering businesses to pursue deals more efficiently. Analysts
credit the growing confidence in CCI’s mechanisms to its transparent processes and
robust competition analysis.

1. The Green Channel Scheme was launched in August 2019.

2. CCI’s average merger clearance time is now 16 days.
3. The deal value threshold aims to regulate high-value digital transactions.
4. Pre-filing consultations are a non-binding but helpful resource.
5. Usage of the Green Channel decreased from 27% to 22% in FY 2023-24.

Challenges Ahead for CCI

Despite the successes, the CCI faces challenges due to the increasing complexity of M&A
filings, especially in digital markets. The upcoming implementation of the deal value
threshold is expected to refine CCI’s regulatory approach. The Commission remains
committed to ensuring efficiency and fairness, positioning itself as important player in
India’s economic growth narrative. Its focus on encouraging competition and modernising
regulatory frameworks is essential for businesses aiming to expand through mergers and
acquisitions.[no_toc]
Rising Costs of Drug-Resistant Infections
Published On Jan 04, 2025

Drug-resistant infections present challenge to healthcare systems. A recent study by the

Indian Council of Medical Research (ICMR) reveals that these infections not only prolong
hospital stays but also increase treatment costs by an average of 33.1%. This research
marks the economic burden faced by families and the healthcare system in India,
particularly in both government and private hospitals.
About Antimicrobial Resistance
Antimicrobial resistance (AMR) occurs when pathogens evolve to survive despite the
presence of drugs designed to kill them. This resistance complicates the treatment of
common infections, leading to increased hospitalisation rates and extended stays. The
ICMR study analysed 1,723 patient records from eight hospitals, providing critical vital
information about the financial implications of AMR.
Cost Analysis of Treatments
The study found that the average cost of treating drug-resistant infections was
$1,238, compared to $827 for infections that were susceptible to treatment.
In government hospitals, the costs were $199.2 for resistant infections and $108.5
for susceptible ones.
Private hospitals reported higher figures, with costs of $3,382 for resistant infections
and $3,019 for susceptible infections.
The primary driver of these costs was the increased expenditure on medicines, which
rose by 61.5% in government facilities and 27.1% in private ones.

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Hospital Stay Duration and Mortality Rates

Patients with resistant infections experienced longer hospital stays, averaging 23
days, compared to 12 days for those with susceptible infections.
The mortality rate for patients with resistant infections was also higher, with 29.5%
of these patients dying compared to 20% of those with susceptible infections.
This puts stress on the severity of drug resistance and its implications for patient
health outcomes.
Financial Impact on Families
Over 45% of patients borrowed money for treatment, with this figure rising to 47.6%
among those with resistant infections.
Additionally, 10.5% of families with resistant infections had to adjust their financial
situations, such as starting new jobs or withdrawing children from school, compared
to 6.2% for susceptible infections.
The study also noted that 11.4% of families with resistant infections sold or
mortgaged assets, compared to 9.8% for those with susceptible infections.
Importance of Preventing Drug Resistance
The findings of this study highlight the urgent need to address antimicrobial resistance to
alleviate financial distress and reduce mortality rates. With nearly 70% of health
expenditures coming from out-of-pocket payments, the economic implications are deep.
Preventing drug resistance could lead to lower treatment costs and improved health
outcomes.
Strategies for Reducing Resistance
To combat antimicrobial resistance, education is crucial. Patients should be informed
about the risks of misusing antibiotics, such as self-prescribing and discontinuing
treatment prematurely. Healthcare professionals can contribute by avoiding broad-
spectrum antibiotics and opting for targeted treatments based on specific infections.
Additionally, pharmaceutical companies must implement effective waste management
practices to prevent the release of antibiotics into the environment.

1. ICMR – Indian Council of Medical Research, a key health research body.

2. AMR – Antimicrobial Resistance, a growing global health threat.
3. Out-of-pocket expenditure – Direct payments made by patients for healthcare
services.
4. Broad-spectrum antibiotics – Medications effective against a wide range of
bacteria.
5. Targeted treatments – Specific therapies aimed at particular pathogens.

[no_toc]
Ramesh Chand Committee Set Up to Update WPI Base Year
Published On Jan 03, 2025

The Government of India has established a committee to update the base year for the

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Wholesale Price Index (WPI), aiming to enhance the accuracy of factory-gate inflation
measures. This initiative reflects structural changes in the economy since the last update
in 2011-12. The 18-member panel, led by Ramesh Chand of NITI Aayog, is tasked with
advising on transitioning the base year to 2022-23. This move is expected to improve the
estimation of economic output adjusted for inflation.
Purpose of Updating WPI
The primary goal of updating the WPI is to provide a more precise measure of inflation at
the producer level. The current WPI only accounts for goods, neglecting the service sector,
which constitutes over half of India’s economic output. By shifting to a more
comprehensive Producer Price Index (PPI), the government aims to capture a broader
spectrum of economic activity.
Composition of the Committee
The committee comprises 18 experts from various sectors, including economics and
finance. Notable members include Soumya Kanti Ghosh, Dharmakirti Joshi, and Indranil
Sengupta. The diverse expertise within the panel is expected to facilitate a thorough
review of the existing price collection system and propose necessary improvements.
Historical Context of the WPI
The WPI has undergone revisions in the past, with the last update occurring in 2015 when
the base year was changed from 2004-05 to 2011-12. This new update aims to reflect the
current economic landscape and improve the accuracy of national income calculations.
The previous base year has become outdated, necessitating this review.
Transition to Producer Price Index
The transition from WPI to PPI is crucial for capturing price changes across both goods
and services. The PPI will provide a more comprehensive understanding of inflationary
pressures faced by producers. This is particularly important as India seeks to align its
statistical practices with international standards.
Expected Outcomes of the Revision
The revision of the WPI and the introduction of a PPI are expected to yield several
benefits. These include improved accuracy in estimating real GDP and a better
understanding of inflation trends. A more reliable index will contribute to informed policy-
making and economic planning.

1. Bibek Debroy recommended a PPI for India.

2. The last WPI revision occurred in 2015.
3. The new panel has 18 months to submit its report.
4. The committee includes members from various economic sectors.
5. WPI currently excludes services and international trade.

Future Directions for Economic Measurement

The committee will not only focus on updating the base year but will also review the
methodology for computing WPI and PPI. Recommendations for enhancing the reliability

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of these indices will be crucial for future economic assessments. This comprehensive
approach aims to ensure that India’s statistical system reflects the dynamic nature of its
economy.[no_toc]
India Updates GDP Base Year to 2022-23
Published On Jan 03, 2025

The Government of India has recently decided to update the base year for calculating
Gross Domestic Product (GDP) from 2011-12 to 2022-23. This change aims to provide a
more accurate representation of the current economic landscape and enhance policy
formulation. The revision reflects shifts in economic activity, consumption patterns, and
industry developments over the past decade.
About Base Year
A base year serves as a reference point for economic indices. It is typically set at an
arbitrary level of 100. Statistical agencies use it to track price changes over time. The value
of a selected basket of commodities is established in the base year, allowing for inflation
adjustments. This standardisation enables comparisons of economic growth across
different time periods.
Importance of Updating the Base Year
Updating the base year is crucial for ensuring GDP data accurately reflects contemporary
economic activities. It accounts for changes in consumption trends and contributions from
various industries. An outdated base year can misrepresent the economic situation,
leading to ineffective policy decisions.
Reasons for the Shift to 2022-23
The Indian economy has transformed in recent years. New sectors have emerged,
digitalisation has accelerated, and the economy has adapted to post-pandemic realities.
These factors necessitate a more current base year to reflect the evolving economic
structure.
Implications of the Change
This change will lead to a revision of past GDP rates, offering a clearer picture of the
economy. It will assist the government in crafting informed economic policies. The
updated figures will align more closely with other indices, such as the Wholesale Price
Index (WPI) and the Consumer Price Index (CPI).
Status of the Revision Exercise
The Ministry of Statistics and Programme Implementation has established a 26-member
Advisory Committee on National Accounts Statistics. This committee, chaired by Biswanath
Goldar, will determine the new base year for GDP calculations. It will also align GDP with
other economic indices, ensuring consistency in data reporting.
GDP Calculation Methods in India
India calculates GDP using two primary methods – the factor cost method and the
expenditure method. The factor cost method evaluates the performance of eight key
industries, while the expenditure method assesses the economy based on household

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consumption, investments, and government spending. Both methods yield figures that
are closely aligned but may differ slightly.
Data Collection Process
The Central Statistics Office (CSO) is responsible for gathering macroeconomic data in
India. It conducts annual surveys and compiles various indices, such as the Industrial
Production Index (IPI) and the Consumer Price Index (CPI). The CSO collaborates with
federal and state agencies to collect necessary data for accurate GDP calculations.
The Factor Cost Figure
The factor cost figure is calculated by determining the net change in value for each of the
eight sectors. These sectors include agriculture, mining, manufacturing, utilities,
construction, trade, financial services, and public administration. The resulting data
provides vital information about the overall economic performance and sector-specific
contributions.
The Expenditure Figure
The expenditure method sums up domestic spending on final goods and services. It
includes household consumption, net investments, government expenditures, and net
trade. This approach marks which sectors contribute most to the economy, illustrating the
resilience of domestic consumption.

1. GDP is the standard indicator of a nation’s economic health.

2. The factor cost method assesses eight key sectors.
3. The CSO collaborates with various government departments for data collection.
4. Domestic consumption constitutes over 60% of India’s GDP.
5. The Advisory Committee consists of 26 members, led by Biswanath Goldar.

[no_toc]
Banks' Profitability Rises for 6th Consecutive Year in FY24: RBI Report
Published On Dec 30, 2024

Indian banks have reported improvements in their financial performance during the
2023-24 fiscal year. The Reserve Bank of India (RBI) has noted a notable decrease in bad
loans and a rise in profits, reflecting robust economic conditions.
Profit Growth in Indian Banks
Scheduled commercial banks experienced a remarkable net profit increase of 32.8%.
Profits reached ₹3.49 lakh crore, marking the sixth consecutive year of profit growth. This
trend showcases the banks’ ability to navigate challenging economic landscapes
effectively.
Decline in Bad Loans
The gross non-performing assets (GNPA) ratio fell to 2.7% by March 2024. This represents
the lowest level in 13 years. By September 2024, the GNPA ratio further improved to 2.5%.
Such reductions indicate enhanced asset quality and effective risk management
strategies.

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Indian banks maintained a strong capital position throughout the fiscal year. Key metrics
like the leverage ratio and capital-to-risk-weighted assets ratio (CRAR) demonstrated
stability. This solid capital foundation supports ongoing lending and growth initiatives.
Net Bad Loans Reduction
Net bad loans decreased to 0.57% of total loans by September 2024. This decline is an
improvement from 0.62% in March. Stronger provisions for potential losses have
contributed to this positive trend, enhancing overall financial resilience.
Non-Banking Financial Companies (NBFCs) Performance
Non-bank financial companies also reported improved asset quality in 2023-24. They
achieved steady double-digit growth in their balance sheets. Strengthened credit growth,
better loan quality, and improved profitability characterise their financial health.
The overall financial stability of Indian banks and NBFCs signals a positive outlook for the
sector. Continued growth in loans and deposits supports this trend, reflecting a robust
economic environment conducive to banking operations.

GKToday Notes:
1. GNPA: Gross Non-Performing Assets (GNPA) represent loans that are not being
repaid. The ratio fell to 2.5% by September 2024, indicating improved asset
quality and risk management.
2. CRAR: Capital to Risk-Weighted Assets Ratio (CRAR) measures a bank’s capital
relative to its risk. A stable CRAR indicates a strong capital position, supporting
ongoing lending and growth initiatives.
3. NBFCs: Non-Banking Financial Companies (NBFCs) provide financial services
without a banking licence. In 2023-24, they showed improved asset quality and
steady double-digit growth, enhancing their financial health.
4. RBI: The Reserve Bank of India (RBI) is India’s central bank. It regulates the
banking sector and oversees monetary policy, ensuring financial stability and
economic growth in the country.

[no_toc]
India-Australia Trade Agreement Celebrates Two Years
Published On Dec 30, 2024

The India-Australia Economic Cooperation and Trade Agreement (ECTA) has marked its
second anniversary and has strengthened the economic ties between India and Australia.
The Government of India aims to enhance collaboration and innovation to support its goal
of becoming a developed nation by 2047.
Trade Growth and Statistics
Since the ECTA was signed, trade between India and Australia has surged. Merchandise
trade increased from over $12 billion in 2020-21 to $26 billion in 2022-23. Although there
was a slight decline to $24 billion in 2023-24, India’s exports to Australia rose by 14%.
From April to November 2023, total merchandise trade exceeded $16 billion, indicating

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robust growth.
Utilization Rates
Both countries have begun sharing data on preferential imports. This data reveals a 79%
utilization rate for exports and an 84% utilization rate for imports. Such figures
demonstrate the effectiveness of the ECTA in facilitating trade.
Several sectors have experienced notable growth due to the ECTA. Textiles, chemicals, and
agriculture have expanded . New export categories, including gold with diamonds and
turbojets, illustrate the diversification of trade.
Import Benefits for India
India has benefited from importing raw materials such as ores, cotton, and wood. These
imports support various Indian industries, enhancing production capabilities and
economic growth.
The Ministry of Commerce and Industry has identified electronics and engineering as
sectors with growth potential. Continued collaboration between India and Australia could
lead to further advancements and opportunities in these areas.

GKToday Notes:
1. ECTA: The India-Australia Economic Cooperation and Trade Agreement, signed
to enhance trade, has boosted bilateral merchandise trade and aims to
encourage economic collaboration.
2. Merchandise Trade: Trade between India and Australia surged from over $12
billion in 2020-21 to $26 billion in 2022-23, showcasing the agreement’s impact
on economic relations.
3. Utilisation Rates: The ECTA has led to a 79% utilisation rate for exports and 84%
for imports, indicating effective trade facilitation between India and Australia.

[no_toc]
BD475-2: India's Biggest and Advanced Crawler Dozer
Published On Dec 30, 2024

BEML Ltd has recently revealed the BD475-2 Dozer, marking a milestone in India’s
engineering capabilities. This crawler dozer, the largest and most advanced in the country,
showcases India’s commitment to self-reliance in manufacturing.
Key Specifications
The BD475-2 Dozer is powered by a robust 950 HP Cummins QST30 engine. Weighing 100
tons, it delivers exceptional performance with 950 FHP at 2100 rpm. The engine complies
with EPA Tier-II emission standards, ensuring efficiency and reduced environmental
impact.
Design and Development
Developed entirely by BEML’s in-house team, the dozer reflects a blend of expertise from
seasoned professionals and fresh talent. The design process took place at BEML’s main
facility in Kolar Gold Fields, near Bangalore, denoting local manufacturing capabilities.

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The dozer is equipped with a 25.6 cubic meter semi-U blade, ideal for heavy-duty mining
tasks. It includes advanced features such as a planetary power shift transmission and a
torque converter with a lockup clutch. These innovations enhance fuel efficiency and
durability.
Operator Comfort and Safety
The operator’s cabin prioritises safety and comfort. It features an acoustically refined
interior and pneumatic suspension seating. A modern electronic monitoring system
provides enhanced control, ensuring a better operational experience.
Commitment to Sustainability
BEML’s Chairman, Shri Shantanu Roy, emphasised the dozer’s eco-friendly attributes
during its inauguration. The BD475-2 Dozer sets a new benchmark in the mining sector,
aligning with the Aatma Nirbhar Bharat vision.
This dozer is designed to meet the demands of both domestic and international markets.
Its advanced engineering positions it as a competitive option in the global heavy
machinery landscape.

GKToday Notes:
1. BD475-2 Dozer: The BD475-2 Dozer is India’s largest crawler dozer. It showcases
advanced engineering and self-reliance, powered by a 950 HP Cummins engine,
meeting global standards.
2. Kolar Gold Fields (KGF): KGF is located near Bangalore. It was historically for
gold mining. Today, it represents local manufacturing capabilities and innovation
in heavy machinery.
3. Aatma Nirbhar Bharat: Aatma Nirbhar Bharat is India’s self-reliance initiative. It
aims to boost local manufacturing and reduce dependency on imports. The
initiative supports sustainable industrial growth across various sectors.
4. EPA Tier-II: EPA Tier-II refers to emission standards set by the Environmental
Protection Agency. These standards aim to reduce air pollution from heavy
machinery, promoting eco-friendly practices in manufacturing.

[no_toc]
India's Record Coal Production in 2023-24
Published On Dec 28, 2024

India’s coal production reached unprecedented levels in the fiscal year 2023-24, totalling
997.826 million tonnes. This marked an impressive increase of 11.71% from the previous
year’s output of 893.191 million tonnes. By mid-December 2023, India had already
supplied approximately 963.11 million tonnes of coal, reflecting robust demand and
efficient supply chains.
Factors Contributing to Increased Production
The surge in coal production can be attributed to several key factors. The government’s
‘Atmanirbhar Bharat‘ initiative aims to enhance self-reliance in coal production. This

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initiative encourages investment in mining technologies and infrastructure. Additionally,

the demand for coal in various sectors, including power generation and steel
manufacturing, has driven production levels higher.
Domestic Raw Coking Coal Production
In 2023-24, domestic raw coking coal production reached 66.821 million tonnes. This type
of coal is essential for steel production and is critical for the country’s industrial growth.
The Ministry of Coal anticipates that production will increase, projecting a target of 140
million tonnes over the next five years.
Future Projections and Initiatives
Looking ahead, the Ministry of Coal is optimistic about continued growth in coal
production. The strategic initiatives under the ‘Atmanirbhar Bharat’ programme are
expected to yield substantial increases in both coking and thermal coal output.
Investments in new technologies and sustainable mining practices will play important role
in achieving these targets.
The increase in coal production is vital for India’s energy security. As the country seeks to
meet its rising energy demands, coal remains a primary source of electricity generation.
Ensuring a stable supply of coal will help mitigate potential energy crises and support
economic development.

GKToday Notes:
1. Atmanirbhar Bharat: This initiative aims for self-reliance in various sectors. It
encourages local production and investment. It focuses on enhancing domestic
capabilities and reducing dependency on imports.
2. Coking Coal: Coking coal is crucial for steel production. It undergoes a specific
carbonisation process. Its quality affects steel’s properties and is essential for
industrial growth.
3. Energy Security: Energy security ensures a stable energy supply. It is vital for
economic growth and development. India aims to balance energy sources for
sustainable progress.

[no_toc]
Surge in Bank Fraud Cases in 2024
Published On Dec 28, 2024

In the financial year 2024, banks reported increase in fraud cases, with a total of 36,066
incidents, more than doubles the 13,537 cases recorded in 2023. Despite the rise in the
number of cases, the financial impact was notably lower, with fraud amounts reaching
₹13,175 crore, the lowest in a decade.
Types of Fraud Cases
The Reserve Bank of India (RBI) reported that internet and card frauds accounted for
44.7% of the total fraud amount and 85.3% of the total fraud cases. This indicates a
concerning trend towards digital fraud, primarily targeting online transactions and card

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usage.
Private vs Public Sector Banks
Private banks reported the highest number of fraud cases, while public sector banks
experienced larger financial losses. This disparity marks the varying vulnerabilities and
challenges faced by different banking sectors in managing fraud risks.
Recently, the RBI imposed more penalties on banks for regulatory violations. Public sector
banks faced 16 penalties totalling ₹23.7 crore, increase from ₹3.6 crore in 2023. Private
banks received 12 penalties amounting to ₹24.9 crore, compared to ₹12.2 crore the
previous year.
Causes of Digital Fraud
Many digital frauds arise from social engineering tactics, where customers are
manipulated into divulging sensitive information. Additionally, the use of “mule” accounts
has increased. These accounts facilitate fraudulent transactions, posing risks to both
banks and customers.
RBI Recommendations
The RBI has advised banks to enhance their customer onboarding processes and improve
transaction monitoring systems. Better coordination with law enforcement agencies is
also essential to tackle systemic issues and mitigate fraud effectively.
The RBI is collaborating with banks and law enforcement to strengthen transaction
monitoring and share best practices. These initiatives aim to control mule accounts and
prevent digital frauds, thereby safeguarding the banking sector.

GKToday Notes:
1. RBI: The Reserve Bank of India is India’s central banking institution. It regulates
monetary policy and oversees financial institutions. RBI plays important role in
maintaining financial stability.
2. Mule Accounts: Mule accounts are bank accounts used to facilitate fraudulent
transactions. They are often opened by unwitting individuals. These accounts
pose risks to financial institutions.

[no_toc]
North East Bankers Conclave 2024
Published On Dec 26, 2024

Union Home Minister Amit Shah addressed the North East Bankers Conclave 2024 in
Agartala, Tripura, which aimed to encourage financial institutions to invest in the region’s
development.
Importance of Economic Inclusion
Amit Shah told the necessity of economic growth across all regions and emphasized that
the development of the Northeast is a national responsibility, urging bankers to view it as
a vital opportunity for growth rather than a mere business venture.

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Future Prospects for the Northeast

Shah expressed confidence in the Northeast becoming a key player in India’s overall
development. He credited Prime Minister Narendra Modi for initiatives aimed at
transforming the region into a gateway for economic progress. He called for enhanced
financial inclusion and targeted investments in infrastructure, agriculture, and small
businesses.
Infrastructure Improvements
Significant advancements in connectivity and trade have been achieved in the Northeast.
The exchange of enclaves with Bangladesh has opened new trade routes through the
Chittagong port. This development has notably reduced transportation costs for goods
produced in the Northeast.
Banking Sector Successes
Shah brought into light recent achievements in India’s banking sector, including improved
recovery rates of bad debts. He noted that public sector bank mergers have resulted in
increased profitability. The Northeast is projected to experience a remarkable growth rate
of 20% over the next decade, making it an attractive destination for investment.
Technological Advancements
The implementation of the Unified Payments Interface (UPI) has positively impacted the
region. Many villages now enjoy 3G and 4G connectivity, facilitating digital transactions.
Shah pointed out the vast potential for hydropower in the Northeast, which could provide
affordable electricity to the nation.
Shah urged bankers to explore and invest in the Northeast’s potential. He encouraged
them to contribute towards building a developed Northeast, which would, in turn, support
the vision of a developed India.

GKToday Notes:
1. NEDFI: The North East Development Finance Corporation is a financial institution
aimed at promoting economic development in Northeast India. It supports
various sectors, including agriculture and infrastructure.
2. Chittagong Port: Located in Bangladesh, Chittagong Port is crucial for trade
with Northeast India. The recent enclave exchange has enhanced trade routes,
lowering transportation costs for Northeast products.
3. UPI: The Unified Payments Interface is a digital payment system in India. It has
improved financial inclusion in the Northeast, enabling many villages to access
3G and 4G networks.
4. Hydropower Potential: The Northeast region of India possesses vast
hydropower resources. These resources could provide affordable electricity,
contributing to the nation’s energy needs and economic growth.

[no_toc]

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Annual Survey of Unincorporated Sector Enterprises (ASUSE) by MoSPI

Published On Dec 26, 2024

The Ministry of Statistics and Programme Implementation (MoSPI) has published the
Annual Survey of Unincorporated Sector Enterprises (ASUSE) results for 2023-24, which
captures the economic landscape of India’s unincorporated non-agricultural sector from
October 2023 to September 2024. This sector contributes to job creation, GDP, and the
overall economy.
Survey Scope and Data Collection
The ASUSE survey focuses on unincorporated businesses in manufacturing, trade, and
services, excluding construction. It gathers data on worker numbers, Gross Value Added
(GVA), wages, assets, loans, and ownership details. This information aids in policymaking
and enhances national economic statistics.
Growth in Businesses and Employment
The ASUSE 2023-24 results indicate a robust recovery in the unincorporated sector. The
number of businesses surged from 6.50 crore in 2022-23 to 7.34 crore, a 12.84% increase.
Employment in this sector rose by over one crore, surpassing 12 crore workers. The
“Other Services” sector experienced the highest employment growth at 17.86%.
GVA, important economic performance metric, increased by 16.52%. The “Other Services”
sector contributed , with a 26.17% rise in GVA. GVA per worker also improved by 5.62%,
reaching Rs. 1,49,742. Manufacturing grew by 13%, reflecting overall economic resilience.
Women’s Entrepreneurship and Wages
The percentage of businesses owned by women rose from 22.9% to 26.2%, denoting a
trend towards increased female entrepreneurship. Wages for hired workers grew by 13%,
with manufacturing seeing the highest increase at over 16%.
Rise in Digital Adoption
Digital adoption among businesses is on the rise. The proportion of businesses using the
internet increased from 21.1% in 2022-23 to 26.7% in 2023-24. This shift indicates a
growing reliance on digital tools for operational efficiency.
Annual estimates for ASUSE 2023-24 and previous years are accessible on the MoSPI
website, particularly in the Data Catalogue section.

GKToday Notes:
1. ASUSE: The Annual Survey of Unincorporated Sector Enterprises assesses India’s
non-agricultural sector. It provides crucial economic data for policymaking and
reflects growth post-pandemic.
2. MoSPI: The Ministry of Statistics and Programme Implementation oversees
statistical data collection in India. It plays a vital role in national economic
planning and supports various ministries with informed decision-making.
3. GVA: Gross Value Added measures economic performance. It reflects the
contribution of sectors to the economy, indicating productivity and growth
trends, particularly in the unincorporated sector.

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[no_toc]
New and Small Businesses to Get GST Registration in 3 Days
Published On Dec 26, 2024

The GST Council has recently approved a proposal to streamline the registration process
for new and small businesses and aims to enable registration within three working days,
reducing bureaucratic hurdles. It addresses issues such as excessive questioning by tax
officials and fraudulent practices involving fake identities for Input Tax Credit (ITC) claims.
Objectives of the New System
The primary goal is to simplify the registration process for small businesses. The system
intends to decrease the workload on tax officials, allowing them to concentrate on higher-
risk cases. By facilitating quicker registration, the initiative aims to encourage compliance
and enhance the ease of doing business.
Four-Tier Structure
The new system is organized into four tiers, each catering to different types of businesses.
First Tier – This tier is for new and small businesses that typically pass little or no ITC.
Registration occurs within three days based on Aadhaar verification, with an ITC limit
imposed.
Second Tier – This tier includes trusted, low-risk entities such as government bodies
and compliant private companies. These businesses can also receive registration
within three days without the need for biometric verification or physical checks, and
they face no ITC limit.
Third Tier – Existing businesses wanting to pass higher ITC but not classified as
trusted fall into this category. They may be required to pay a non-refundable fee,
provide a fixed deposit, and obtain a No Objection Certificate (NOC) from a trusted
business.
Fourth Tier – This tier is designed for businesses wishing to switch categories to
access higher ITC amounts.
Next Steps for Implementation
Following the GST Council’s approval, the Law Committee will amend existing laws and
draft guidelines for the new system. The rollout will likely occur in phases, starting with
new and small businesses, to ensure a smooth transition. This structured approach aims
to encourage a more efficient and transparent registration process.

GKToday Notes:
1. Aadhaar: Aadhaar is a unique identification system in India. It assigns a 12-digit
number to residents. Aadhaar verification is crucial for various services, including
tax registration.
2. ITC: Input Tax Credit allows businesses to reduce tax liability. It ensures that
taxes paid on purchases can be claimed back. ITC is vital for maintaining cash
flow in businesses.
3. GST Council: The GST Council is a constitutional body in India. It comprises the

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Union Finance Minister and State Finance Ministers. The council makes decisions
regarding GST policies and rates.
4. No Objection Certificate (NOC): An NOC is a legal document. It signifies that
one party has no objection to the details specified in the certificate. NOCs are
often required in business transactions.

[no_toc]
Decline in Domestic Migration in India
Published On Dec 26, 2024

India has experienced a notable decrease in domestic migration, with recent data
indicating that the number of domestic migrants fell by nearly 12% from 2011 to 2023.
The Prime Minister’s Economic Advisory Council (EAC-PM) reported that the total number
of migrants in 2023 stands at approximately 40.20 crore.
Migration Statistics
The total number of domestic migrants in 2023 is 40,20,90,396, which represents a decline
from 45,57,87,621 in the 2011 Census. The overall decrease amounts to 11.78%, denoting
a shift in migration patterns over the past decade.
Migration Rate Trends
The migration rate in India has also seen a reduction. It dropped from 37.64% of the total
population in 2011 to an estimated 28.88% in 2023. This decline puts stress on a broader
trend in domestic movement within the country.
Factors Influencing Migration Decline
Several factors contribute to the decline in domestic migration and improved access to
essential services such as education and healthcare plays role. Enhanced infrastructure
and connectivity have made it easier for people to remain in their current locations.
Additionally, better economic opportunities in previously high-migration areas have
reduced the need for relocation.
The decline in migration reflects overall economic growth in India. As regions develop and
offer more opportunities, individuals are less inclined to migrate. This trend may indicate
a shift towards more balanced regional development across the country.
About the reasons behind the decrease in migration can inform policymakers. Targeted
efforts to sustain and enhance local economies may further influence migration trends.
Monitoring these changes will be crucial for future economic planning and development
strategies.

GKToday Notes:
1. EAC-PM: The Economic Advisory Council to the Prime Minister advises on
economic policy. It aims to enhance economic growth and development through
informed recommendations and data analysis.
2. Census 2011: The 2011 Census in India recorded demographic data. It serves as
a baseline for understanding population trends and migration patterns over

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subsequent years.
3. Infrastructure Connectivity: Improved infrastructure connectivity enhances
access to services. This development has a deep impact on migration patterns,
reducing the need for individuals to relocate.

[no_toc]
TRAI Introduces New Telecom Regulations
Published On Dec 24, 2024

The Telecom Regulatory Authority of India (TRAI) has introduced amendments to enhance
consumer protection in the telecom sector. The Telecom Consumers Protection (Twelfth
Amendment) Regulations, 2024, and the Telecommunication Tariff (Seventieth
Amendment) Order, 2024 were published recently, aim to improve the experience for
consumers while ensuring fair practices among service providers.
Consultation Process Overview
On 26th July 2024, TRAI released a consultation paper to assess the existing Telecom
Consumer Protection Regulations, 2012. The paper addressed various issues, including
tariff choices, the validity of vouchers, and voucher denominations. An Open House
Discussion took place on 21st October 2024, allowing stakeholders to voice their opinions
and concerns.
The new regulations introduce a Special Tariff Voucher (STV) specifically for Voice and SMS
services. This initiative aims to provide more options to consumers, particularly benefiting
elderly and rural customers.
Extended Validity Period
The validity period for STVs and Combo Vouchers (CVs) has been increased from 90 days
to 365 days. This extension is designed to offer greater flexibility and convenience to
consumers, allowing them to use their vouchers at their own pace.
The requirement for colour coding physical vouchers has been abolished. This change
reflects the growing trend of online recharges, making it easier for consumers to navigate
their options without confusion.
Changes to Top-Up Vouchers
The previous restriction on top-up vouchers, which limited them to denominations of ₹10
and its multiples, has been removed. However, consumers will still have access to at least
one ₹10 top-up voucher, ensuring affordability remains a priority.
The amendments align the definitions of STVs and CVs with the latest regulations. Detailed
explanatory memorandums accompany the new regulations and orders, providing clarity
on the changes implemented.

GKToday Notes:
1. Telecom Consumers Protection Regulations: This set of regulations was first
introduced in 2012. The Twelfth Amendment aims to enhance consumer rights
and improve service provider accountability.

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2. Open House Discussion: This forum allows stakeholders to discuss regulatory

changes. It encourages transparency and enables consumers and providers to
voice their concerns and suggestions.

[no_toc]
India to Lend USD $500 Million to India for Sustainable Infrastructure
Published On Dec 24, 2024

The Government of India has recently partnered with the Asian Development Bank (ADB)
to enhance sustainable infrastructure, which involves a substantial loan of $500 million
aimed at encouraging environmentally friendly projects. The agreement includes a
government guarantee, ensuring the funds will be effectively utilized, and will be
channeled through the India Infrastructure Finance Company Limited (IIFCL).
Objectives of the Loan
The primary aim of the loan is to boost IIFCL’s capacity to integrate green practices into
infrastructure development. This initiative aligns with India’s broader climate goals and
promotes sustainable economic growth. The loan will enable the implementation of
projects that contribute positively to the environment.
Establishment of a Sustainability Unit
A key component of the agreement is the establishment of a dedicated sustainability unit
within IIFCL. This unit will focus on developing and enforcing an environmental
sustainability framework. It will also create methodologies to evaluate the sustainability of
proposed projects, ensuring adherence to environmental standards.
The funding will facilitate long-term financial support for various sectors, including
connectivity, energy, education, and healthcare. These areas are critical for national
development and improving the quality of life for citizens. The focus on sustainable
practices will help mitigate the environmental impact of infrastructure projects.
ADB’s Role and Vision
The ADB’s Country Director, Mio Oka, brought into light the importance of this funding.
The support aims to enhance IIFCL’s ability to finance projects that are not only
economically viable but also environmentally sustainable. This partnership puts stress on
ADB’s commitment to promoting sustainable development across the region.
The agreement signifies step towards achieving India’s climate objectives. It sets a
precedent for future collaborations between the government and financial institutions.
The focus on sustainability in infrastructure projects is expected to drive innovation and
investment in green technologies.

GKToday Notes:
1. ADB: The Asian Development Bank is a regional development bank established
in 1966. It aims to reduce poverty and promote sustainable economic growth in
Asia through loans and grants.
2. IIFCL: The India Infrastructure Finance Company Limited was established in

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2006. It provides long-term financial support for infrastructure projects in India,

focusing on sectors like energy and transportation.
3. Sustainability Unit: The sustainability unit within IIFCL will develop an
environmental framework. It aims to assess and ensure that infrastructure
projects meet sustainability standards and climate goals.

[no_toc]
GST Council Implements "Track and Trace Mechanism"
Published On Dec 23, 2024

The GST Council has recently made updates to enhance tax compliance and clarity in the
tax framework, aim to reduce tax evasion, and simplify tax processes for businesses and
consumers.
Track and Trace Mechanism
The Council approved a new “Track and Trace Mechanism” for goods susceptible to tax
evasion and will employ unique identification marks on products and packaging. It will
enable tracing throughout the supply chain, thus improving accountability.
Tax Rate Adjustments
Several tax rate changes were announced. The GST on fortified rice kernels (FRK) has been
reduced from 18% to 5%. Additionally, gene therapy will now be exempt from GST. These
adjustments aim to make essential goods more affordable.
Exemptions for Imports and Supplies
The Council introduced exemptions for imports of equipment and samples for the
International Atomic Energy Agency (IAEA) under specific conditions. Furthermore, the
compensation cess has been lowered to 0.1% for supplies to merchant exporters, easing
their tax burden.
Contributions to the Motor Vehicle Accident Fund by general insurance companies are
now exempt from GST. This fund is crucial for providing compensation and cashless
treatment to road accident victims, enhancing public welfare.
Vouchers and Goods Definition
Transactions involving vouchers will no longer attract GST, as they do not qualify as goods
or services. The definition of “pre-packaged and labeled” goods has been clarified, now
covering retail items up to 25 kg or 25 litres.
Clarifications on Penal Charges
There will be no GST on penal charges collected by banks or financial institutions for loan
non-compliance. This change aims to alleviate the tax burden on financial services. The
Council is working to simplify GST rules for specific cases. The pre-deposit requirement for
appealing penalty-related orders has been reduced. Circulars will be issued to address
legal ambiguities and disputes, promoting greater clarity.

GKToday Notes:
1. Track and Trace Mechanism: This system uses unique identification marks to

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monitor goods in the supply chain. It aims to enhance accountability and reduce
tax evasion .
2. Fortified Rice Kernels (FRK): FRK is a nutritional supplement designed to
combat malnutrition. The GST on FRK was reduced from 18% to 5%, making it
more accessible to consumers.
3. International Atomic Energy Agency (IAEA): The IAEA promotes peaceful
nuclear energy use. GST exemptions for its imports support international
cooperation in nuclear safety and technology development.
4. Motor Vehicle Accident Fund: This fund provides compensation for road
accident victims. Exempting contributions from GST enhances funding for
cashless treatment and victim support services.

[no_toc]
Real-Time Payments to Boost India's GDP by $76.5B
Published On Dec 21, 2024

Real-time payments are revolutionizing India’s financial landscape with a recent study
predicting that this technology will contribute $76.5 billion to India’s economy by 2028.
This figure represents 1.5% of the nation’s GDP, equivalent to the output of approximately
8 million workers.
Current Economic Impact
In 2023, real-time payments already added $50 billion to India’s GDP. This growth rate
positions India as the leading country globally in GDP growth attributed to real-time
payment technologies. The adoption of these systems has enhanced the efficiency of
financial transactions.
By 2028, it is estimated that real-time payments will create 25.5 million new bank accounts
in India. This influx of new accounts could generate around $24.6 billion in revenue for
financial institutions. The average lifetime value of a customer is projected to be
approximately $963.
Global Context
On a global scale, real-time payments are expected to contribute $285.8 billion to GDP by
2028. This represents a remarkable 74.2% increase over five years. Furthermore, it is
anticipated that more than 167 million people worldwide will gain access to the banking
system through these enhanced payment methods.
Transformation of Banking
Santhosh Rao, Senior Vice President at ACI Worldwide, marks India’s leadership in the
global real-time payments market. In 2023, India recorded 129.3 billion transactions,
showcasing the widespread adoption of this technology. Real-time payments have
transformed banking in India, facilitating faster and smoother transactions while helping
millions access formal financial services.

GKToday Notes:

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1. ACI Worldwide: ACI Worldwide is a global provider of real-time electronic

payment systems. It focuses on ensuring secure and efficient transactions across
various financial institutions worldwide.
2. Centre for Economics and Business Research (CEBR): CEBR is a UK-based
economic consultancy. It provides analysis and forecasts, influencing business
strategies and public policy with its research findings.
3. Real-time Payments: Real-time payments allow instant money transfers
between accounts. They enhance transaction speed and efficiency, impacting
economies and banking systems globally.

[no_toc]
Fiscal Responsibility and Budget Management (FRBM) Act, 2003
Published On Dec 21, 2024

The Fiscal Responsibility and Budget Management (FRBM) Act, enacted in 2003, aims to
maintain fiscal discipline in India, introduced by Finance Minister Yashwant Sinha in 2000
and became effective on July 5, 2004. The Act mandates the government to manage its
finances responsibly, reducing the fiscal deficit and ensuring financial stability.
Key Financial Documents Required
The FRBM Act requires the government to present specific documents to Parliament
alongside the Union Budget. These documents include the Medium-Term Fiscal Policy
Statement, the Macroeconomic Framework Statement, and the Fiscal Policy Strategy
Statement. They provide projections for fiscal deficit, revenue deficit, and tax revenue as
percentages of Gross Domestic Product (GDP).
Exceptions to Fiscal Targets
The Act allows for exceptions to fiscal targets under special circumstances, such as
emergencies. For instance, during the COVID-19 pandemic, fiscal targets were temporarily
suspended due to increased government expenditure and decreased revenue. This
flexibility helps the government respond effectively to unforeseen economic challenges.
Long-term Fiscal Goals
The government introduced a plan in the 2021-22 budget to reduce the fiscal deficit to
below 4.5% by 2025-26. This goal reflects the government’s commitment to restoring fiscal
health post-pandemic while balancing economic growth.
The FRBM Act promotes transparency in financial practices. It encourages realistic
budgeting and accountability in government spending. The Act also aims to establish a
framework for sustainable debt management, preventing financial strain on the economy.
Over the years, the FRBM Act has undergone several amendments to adapt to changing
economic conditions. These changes ensure that the Act remains relevant and effective in
promoting fiscal responsibility in India. The Act also provides the Reserve Bank of India
with the flexibility to manage inflation effectively.

GKToday Notes:

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1. FRBM Act: The Fiscal Responsibility and Budget Management Act was enacted in
2003. It promotes fiscal discipline, transparency, and accountability in India’s
financial practices and management.
2. Medium-Term Fiscal Policy Statement: This document outlines the
government’s fiscal strategy over the medium term. It includes projections for
fiscal and revenue deficits as percentages of GDP.
3. COVID-19 Pandemic Exceptions: During the COVID-19 pandemic, fiscal targets
were suspended. This allowed increased government spending to address
economic challenges and support recovery efforts in India.

[no_toc]
India Tops Global Remittances for 2024
Published On Dec 20, 2024

India continues to lead the world in remittances, with non-resident Indians (NRIs) sending
home a remarkable $129 billion in 2024, marking an increase from the previous year’s
remittance of Rs 8.95 lakh crore. The World Bank report confirms India’s position as the
largest recipient, outpacing Mexico, China, the Philippines, and Pakistan.
Growth in Global Remittances
Global remittances experienced a 5.8% increase in 2024, recovering from the pandemic’s
effects. The growth is primarily attributed to improvements in the job market across OECD
countries. In comparison, the growth rate was only 1.2% in 2023, indicating a strong
rebound.
Traditionally, Gulf countries have been major contributors to remittances. However,
developed nations such as the United States, United Kingdom, Australia, and Canada are
becoming increasingly sources. This shift reflects changing migration patterns and
economic opportunities in these countries.
Remittances to Low and Middle-Income Countries
Recently, remittances to low and middle-income countries (LMICs) are projected to hit
$685 billion. South Asia is expected to lead this growth, with India, Pakistan, and
Bangladesh experiencing the largest increases. The region’s growth rate is forecasted at
11.8%.
Historical Context of India’s Remittance Dominance
India first surpassed $100 billion in remittances in 2022, receiving $111.22 billion that
year. This milestone telld the vital role of the Indian diaspora in supporting the nation’s
economy and development.
Experts highlight that remittances extend beyond basic needs. They contribute to poverty
alleviation, healthcare, and education funding. Additionally, they promote financial
inclusion and enhance access to capital for governments and businesses, encouraging
long-term economic growth.

GKToday Notes:

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1. NRIs: Non-Resident Indians (NRIs) are Indian citizens living abroad. They play
important role in India’s economy through remittances, contributing to foreign
exchange and financial stability.
2. OECD: The Organisation for Economic Co-operation and Development (OECD) is
an intergovernmental organisation. It promotes policies that improve economic
and social well-being worldwide, particularly among developed nations.
3. LMICs: Low and Middle-Income Countries (LMICs) are nations with varying
income levels. They rely heavily on remittances for economic stability, with
substantial growth projected in remittance inflows.
4. Remittance Dominance: India’s remittance dominance began in 2022,
surpassing $100 billion. This achievement telld the Indian diaspora’s vital role in
encouraging the country’s economic development.

[no_toc]
World Bank Approves $2 billion for Ukraine, Including US Loan Funds
Published On Dec 20, 2024

The World Bank has recently approved a substantial funding package aimed at boosting
Ukraine’s financial and economic stability. This initiative, announced on December 18,
2024, includes a combination of grants and loans, reflecting international support for
Ukraine amidst ongoing challenges.
Funding Breakdown
The approved funding totals $2.05 billion. It comprises a $1 billion grant from a new $20
billion U.S. loan fund, which is backed by frozen Russian government assets. Additionally,
$1.05 billion comes from the World Bank, supplemented by loan guarantees from Japan
and Britain.
U.S. Treasury Involvement
The U.S. Treasury has transferred the $20 billion to a World Bank fund designated for
Ukraine. This transfer is part of a broader $50 billion financing strategy that utilises
Russian assets frozen since the invasion in February 2022.
G7 Loan Plan
This grant marks the first disbursement from the G7 loan plan, which was finalised in
October. The G7 nations involved include Japan, Canada, Britain, France, Germany, Italy,
and the U.S. The urgency of securing this funding arose from the impending inauguration
of President-elect Donald Trump.
The funding aims to support Ukraine’s budget while implementing essential reforms.
These reforms target various sectors, including enhancing competition in the railway
industry and expanding renewable energy initiatives.
Additional Measures
Further measures include increasing credit availability for agriculture, reducing state
control in banking, aligning motor fuel taxes with EU rates, reassessing agricultural land
values, and updating government procurement laws.
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Commitment to Ukraine
Bob Saum, the World Bank’s Eastern Europe director, emphasised Ukraine’s economic
stabilisation efforts despite the ongoing conflict. He noted that Ukraine is striving for a
robust market economy aligned with its EU membership aspirations. The World Bank and
its international partners remain committed to supporting Ukraine in this endeavour.

GKToday Notes:
1. G7 Loan Plan: The G7 Loan Plan is a financial strategy involving Japan, Canada,
Britain, France, Germany, Italy, and the U.S. It aims to support Ukraine’s
economic stability with substantial funding.
2. U.S. Treasury: The U.S. Treasury is responsible for managing national finances.
It recently transferred $20 billion to a World Bank fund dedicated to supporting
Ukraine amid its ongoing economic challenges.
3. Trust Fund: The trust fund mentioned is supported by Japan and Britain. It
provides loan guarantees to enhance financial support for Ukraine, reflecting
international cooperation during a critical period.

[no_toc]
Direct Tax Collection Surges in 2024-25
Published On Dec 19, 2024

The Income Tax Department has reported impressive growth in direct tax collections for
the financial year 2024-25, surpassing 19.21 lakh crore rupees, marking a substantial
20.32% increase compared to the previous year. This growth reflects a strong economic
recovery and improved compliance among taxpayers.
Breakdown of Tax Collections
The total direct tax collection comprises two main components – corporate tax and non-
corporate tax. Corporate tax has contributed over 9.24 lakh crore rupees, while non-
corporate tax collections have reached approximately 9.53 lakh crore rupees. This
balanced growth in both sectors indicates a healthy economic landscape.
Refunds Issued
In addition to tax collections, the Income Tax Department has processed refunds
amounting to over 3.38 lakh crore rupees. This proactive approach in issuing refunds
demonstrates the department’s commitment to taxpayer satisfaction and efficient
processing.
The net direct tax collection has also experienced growth, with an increase of over 16%.
The current net collection stands at more than 15.82 lakh crore rupees. This figure marks
the effectiveness of the department’s initiatives to enhance tax compliance and streamline
collection processes.
Implications of Increased Collections
The surge in direct tax collections has positive implications for the economy. Higher tax
revenues can lead to increased government spending on infrastructure, healthcare, and

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education. Additionally, it may boost investor confidence and stimulate economic growth.
Looking ahead, the Income Tax Department aims to maintain this growth trajectory.
Continued efforts will focus on improving taxpayer services, enhancing digital
infrastructure, and promoting compliance. These strategies are expected to further
increase direct tax collections in the coming years.

GKToday Notes:
1. Corporate Tax: Corporate tax is levied on company profits. It contributes to
national revenue. The current collection exceeds 9.24 lakh crore rupees in the
fiscal year.
2. Non-Corporate Tax: Non-corporate tax applies to individuals and partnerships.
It complements corporate tax in revenue generation. Current collections are
approximately 9.53 lakh crore rupees.
3. Net Direct Tax Collection: This figure represents total tax collected minus
refunds. It reflects the effectiveness of tax policies. Current net collection
exceeds 15.82 lakh crore rupees.

[no_toc]
India's Alternative Assets Market Set to Reach $2 Trillion by 2034
Published On Dec 19, 2024

The Alternative Assets market in India is currently valued at $400 billion and is projected
to expand to $2 trillion over the next decade. The growth is attributed to sophisticated
investors seeking better portfolio diversification and higher returns. Regulatory changes
have also played a role.
Global Context of Alternative Assets
Globally, the Alternative Assets market is worth approximately $20 trillion and constitutes
about 20% of total assets under management. Private equity and real assets have
traditionally dominated this market. However, investors are increasingly exploring private
credit, complex hedging strategies, natural resources, and cryptocurrencies.
Trends Among High Net Worth Individuals
In India, high-net-worth individuals (HNIs) are actively seeking diversified investment
products. Currently, alternatives account for 7-8% of their total assets under management.
This indicates substantial room for growth in this segment. Many investors are turning to
alternatives as a means to mitigate risk and enhance potential returns.
Emerging Interest from Family Offices
Family offices and ultra-wealthy individuals are pursuing more complex investment
options, suggests that middle-income families are also becoming interested in asset
classes such as real estate investment trusts and infrastructure investment trusts. This
trend reflects a broader shift in investment strategies across various income levels.
Projections for Wealth Growth
The number of HNIs and ultra-HNIs in India is expected to double in the next five years.

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Their collective wealth is projected to reach $2 trillion by 2027. This growth will likely
increase demand for differentiated products like Alternative Investment Funds (AIFs),
which could represent 15% of their total wealth.
A stronger regulatory framework for AIFs has been established, promoting investor
confidence. A standardized approach to portfolio valuation has also contributed to the
growth of these investment products. This regulatory environment is crucial for the
sustainable expansion of the Alternative Assets market in India.

GKToday Notes:
1. HNIs: High Net Worth Individuals are affluent investors with assets. They seek
diversified investment products. Their growth indicates a shift towards
alternative assets in India.
2. AIFs: Alternative Investment Funds are pooled investment vehicles. They cater to
sophisticated investors. AIFs are expected to represent 15% of HNIs’ wealth by
2027.

[no_toc]
Delhi and Bengaluru Lead in India's Crypto Investment
Published On Dec 19, 2024

Delhi and Bengaluru emerged as players in India’s cryptocurrency landscape, and

contributed notably to the national investment portfolio, especially in the Layer-1
category. According to a recent report, Delhi and Bengaluru accounted for 30.5% of India’s
overall crypto investments, showcasing its growing influence.
Key Contributors to Crypto Investments
Delhi-NCR led the nation with 20.9% of crypto investments. Bengaluru followed with 9.6%
while Mumbai secured third place with 6.5%. Collectively, these three cities represented
over 36% of India’s crypto market.
Performance of Tier 2 and Tier 3 Cities
Pune distinguished itself with 86% of its investors reporting positive returns. Other cities
like Jaipur, Lucknow, and Botad also demonstrated robust growth in crypto adoption.
Notably, Kolkata and Botad entered the top 10 cities for crypto investments for the first
time.
Investor Preferences in 2024
Indian investors showed a clear preference for blue-chip and large-cap tokens, which are
favoured for their stability. Layer-1 tokens attracted 37% of investor interest, while DeFi
tokens followed at 17%. In Bengaluru, blue-chip investments led at 38%, with large-cap
tokens at 30%.
The under-35 age group constituted nearly 75% of crypto investors. The 36–45 age group
also exhibited steady growth. Women represented 11% of the investor base, denoting
increasing female participation in the market.

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Rise of Meme Coins

Meme coins gained traction, with Dogecoin leading at 55%. PEPE emerged as the top-
performing asset in 2024, achieving a remarkable 1373% return. This outperformed
Solana’s 633% return from the previous year.
The report indicated a substantial increase in crypto investments across India in 2024.
While historically concentrated in major cities, crypto adoption is now expanding to
smaller cities. Investors are diversifying their portfolios by exploring various asset types,
including meme coins and DeFi tokens.

GKToday Notes:
1. Layer-1 Tokens: Layer-1 tokens are foundational blockchain networks. They
support decentralised applications. Their popularity surged, attracting 37% of
investor interest in 2024.
2. Pune: Pune had the highest percentage of investors with positive returns. An
impressive 86% reported gains. This reflects the city’s growing crypto investment
landscape and investor confidence.
3. PEPE: PEPE emerged as the top-performing asset in 2024. It delivered an
astounding 1373% return. This performance outshone other cryptocurrencies,
denoting its popularity among investors.
4. Botad: Botad made its debut in the top 10 cities for crypto investments. This
marks milestone for the city. Its growth signifies the expanding crypto landscape
in India.

[no_toc]
Surge in Indian Capital Markets Post-Covid-19
Published On Dec 19, 2024

The Indian capital markets have experienced remarkable growth since the Covid-19
pandemic and retail investor participation has transformed the landscape of investment in
the country. This trend reflects a broader shift towards financial literacy and investment
awareness among the populace.
Demat Account Growth
Demat accounts in India have seen an increase. From FY14 to FY20, the annual growth
rate was 11.1%. However, from FY20 to FY24, this rate escalated to 38.8%. This sharp rise
indicates a growing acceptance of digital trading platforms.
Rise in Systematic Investment Plans (SIPs)
Monthly contributions to Systematic Investment Plans have surged. More investors are
opting for SIPs as a means to invest in mutual funds. This method offers a disciplined
approach to investing, which appeals to many retail investors.
Expansion of Mutual Fund Assets
The assets under management (AUM) of mutual funds have increased . This expansion
marks the growing trust in mutual funds as a viable investment option. Investors are

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diversifying their portfolios by including mutual funds.

Growth of Insurance and Alternative Investment Funds
Insurance companies are also witnessing an increase in assets. This growth complements
the rise of alternative investment funds (AIFs). Retail investors are exploring various
investment avenues beyond traditional options.
There is a marked increase in retail investor involvement in the capital markets. This trend
indicates a shift in investment culture, with more individuals seeking opportunities to
grow their wealth. The accessibility of information and platforms has contributed to this
phenomenon.

GKToday Notes:
1. Demat Accounts: Dematerialised accounts facilitate electronic trading of
securities. Their growth indicates a shift towards digital platforms. Increased
usage reflects rising investor confidence in Indian capital markets.
2. Systematic Investment Plans (SIPs): SIPs allow investors to contribute
regularly to mutual funds. This disciplined approach encourages long-term
investment. They have gained popularity among retail investors for wealth
accumulation.
3. Assets Under Management (AUM): AUM refers to the total market value of
assets managed by financial institutions. Rising AUM signifies growing investor
trust. It reflects diversification strategies among retail investors.
4. Alternative Investment Funds (AIF): AIFs are privately pooled investment
vehicles. They cater to sophisticated investors seeking diverse opportunities.
Their growth indicates a shift from traditional investment avenues in India.

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India Becomes Third Largest Smartphone Exporter
Published On Dec 18, 2024

India has made strides in the global smartphone market and has risen from 23rd to 3rd
place in smartphone exports since 2019. In November 2024, India’s smartphone exports
exceeded 20,000 crore rupees in a single month. This achievement has been celebrated by
officials and marks a very important moment in India’s manufacturing landscape.
Growth in Smartphone Exports
India’s smartphone exports have surged dramatically over the past few years. The
increase is attributed to various factors, including government initiatives and a growing
domestic manufacturing base. This growth reflects the country’s capabilities in technology
and production.
Government Initiatives
The Government of India launched the Production-Linked Incentive (PLI) scheme to boost
local manufacturing. This scheme aims to enhance production and export capabilities. It
encourages companies to manufacture smartphones in India, thereby reducing reliance

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on imports.
Achievements Under PLI Scheme
Under the PLI scheme, India has set ambitious targets for smartphone exports. The goal
for the financial year 2024-25 is to export 70-75% of the total production value. Achieving
this target indicates the effectiveness of the PLI scheme in encouraging growth.
Impact on the Economy
The rise in smartphone exports contributes to the Indian economy. It creates job
opportunities in manufacturing and allied sectors. Increased exports also improve the
country’s trade balance and foreign exchange reserves.
Looking ahead, India aims to strengthen its position in the global smartphone market.
Continued investment in technology and infrastructure will be crucial. The focus will
remain on innovation and maintaining competitive pricing to attract more international
buyers.

GKToday Notes:
1. Production-Linked Incentive (PLI): Production Linked Incentive (PLI) scheme,
launched in 2020, offers financial incentives to companies for incremental sales
of products manufactured domestically. Aimed at boosting manufacturing and
reducing import dependence, it covers 14 key sectors, including electronics,
pharmaceuticals, and textiles.
2. Trade Balance: A positive trade balance indicates economic health. Increased
smartphone exports enhance India’s foreign exchange reserves. This contributes
to overall economic stability and growth prospects.

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OPEC Fund Approves $1 Billion in Development Aid
Published On Dec 18, 2024

The OPEC Fund for International Development has recently approved nearly $1 billion in
funding to support various development projects worldwide. This decision was made
during the 190th Governing Board meeting held in Vienna and aims to address critical
areas such as infrastructure, food security, renewable energy, and economic resilience.
Funding Distribution
The approved funds will benefit twenty-two countries across four continents. Notable
beneficiaries include Bangladesh, Sri Lanka, and Türkiye in Asia; Burkina Faso, Chad, and
Kenya in Africa; Montenegro in Europe; and El Salvador, Honduras, and the Dominican
Republic in Latin America.
Focus Areas
The projects funded will primarily concentrate on sustainable development. The emphasis
will be on enhancing infrastructure, ensuring food security, promoting renewable energy,
and strengthening economic resilience in the targeted regions. This aligns with global
efforts to combat climate change.

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Global Partnerships
The OPEC Fund continues to collaborate with various partners worldwide. These
partnerships are crucial for addressing current global challenges and encouraging
sustainable growth. The Fund’s initiatives are designed to build a better future for
developing nations.
This funding approval marks an important milestone in supporting economic and social
growth. The focus on sustainable development is vital for the long-term prosperity of the
beneficiary countries. The OPEC Fund’s initiatives are poised to make a meaningful impact
on the lives of many.

GKToday Notes:
1. OPEC Fund: The Organisation of the Petroleum Exporting Countries Fund
supports international development. It focuses on infrastructure, food security,
renewable energy, and economic resilience in developing nations.
2. 190th Governing Board Meeting: This meeting in Vienna approved nearly $1
billion in funding. It marks step in addressing global development challenges
and promoting sustainable growth.
3. Beneficiary Countries: Twenty-two countries across Africa, Asia, Europe, and
Latin America will receive support. Notable nations include Bangladesh, Kenya,
and Montenegro, focusing on sustainable development and climate change
solutions.

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India’s Path to Economic Growth and Investment
Published On Dec 18, 2024

India is currently navigating economic transitions. Recent discussions in Mumbai focused

on strategies for enhancing financial mobilization. The workshop, hosted by NITI Aayog,
the University of California, Berkeley, and IGIDR, brought together various stakeholders to
address these challenges.
India’s Economic Growth Journey
India has seen remarkable economic progress in recent years. The country advanced from
being the 10th largest economy in 2014 to the 5th largest. Structural reforms have
attracted investment, supported by political stability and a growing middle class.
Vision for 2047
The goal is for India to achieve high-income status by 2047. This ambition requires
unlocking domestic savings and enhancing financial markets. Emphasis on innovation and
sustainability is essential for transforming challenges into opportunities.
Investment Needs and Challenges
Long-term GDP growth of 7-8% is necessary for India to reach developed country status.
Significant investments are required in energy transition, infrastructure, urbanisation, and
human capital development. However, financing these investments poses a major

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challenge due to widespread poverty.

India’s success in managing its economic transition will have global repercussions. As the
most populous country, its ability to achieve sustainable growth can influence worldwide
economic stability.
The workshop featured sessions on various financing aspects. Topics included
macroeconomic management, liberalising capital movements, and creating a robust
financial system. Experts also addressed the fiscal challenges associated with large-scale
investments.

GKToday Notes:
1. NITI Aayog: NITI Aayog is India’s premier policy think tank. It aims to encourage
cooperative federalism and enhance economic development through innovative
policy solutions and strategic planning.
2. IGIDR: The Indira Gandhi Institute of Development Research focuses on
development economics. It conducts research and offers postgraduate
education, aiming to influence policy through rigorous academic work.
3. Energy Transition: Energy transition refers to shifting from fossil fuels to
renewable energy sources. It is crucial for sustainable development and
combating climate change, particularly in rapidly developing economies.

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Gujarat's First Semiconductor Assembly Plant Opens
Published On Dec 18, 2024

Suchi Semicon has inaugurated Gujarat’s first Outsourced Semiconductor Assembly and
Testing (OSAT) plant in Surat, marking an advancement in India’s semiconductor
manufacturing landscape.
Plant Overview
The OSAT plant covers an area of 30,000 square feet and provides essential services like
assembling testing, and packaging semiconductor components. These services cater to
various industries, including automotive and consumer electronics.
Government Support
Union Minister C.R. Patil and Gujarat’s Home Minister Harsh Sanghavi inaugurated the
plant. Prime Minister Narendra Modi praised Suchi Semicon’s efforts to enhance India’s
semiconductor capabilities. This initiative aligns with the Atmanirbhar Bharat vision,
aiming to reduce import dependency.
Suchi Semicon invested $100 million in the new facility. The plant aims to produce up to 3
million semiconductor chips daily. The company plans to partner with technology experts
to optimise operations and encourage innovation.
Job Creation and Economic Impact
The plant is expected to generate approximately 1,200 jobs over the next five years. It is
part of Gujarat’s Electronic Policy and the India Semiconductor Mission, supporting self-

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reliance in technology. Local leaders anticipate that this development will drive economic
growth in the region.

GKToday Notes:
1. OSAT: Outsourced Semiconductor Assembly and Testing (OSAT) refers to
services for assembling, testing, and packaging semiconductor components. It
plays important role in the semiconductor manufacturing supply chain.
2. Atmanirbhar Bharat: Atmanirbhar Bharat is a government initiative aimed at
achieving self-reliance in various sectors. It focuses on reducing dependency on
imports and boosting domestic manufacturing capabilities across India.
3. Gujarat’s Electronic Policy: Gujarat’s Electronic Policy supports the growth of
the electronics sector. It aims to attract investment, create jobs, and establish the
state as a leading hub for technology and manufacturing.
4. Cleanroom Environments: Cleanroom environments are controlled spaces with
minimal pollutants. They are essential in semiconductor manufacturing to
ensure product quality and reduce contamination during the production process.

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RBI Tackles Unclaimed Deposits in India
Published On Dec 16, 2024

The Reserve Bank of India (RBI) has initiated measures to address the growing issue of
unclaimed deposits, arising from inactive savings or current accounts, as well as
unclaimed term deposits. The RBI aims to safeguard depositor interests while facilitating
the reclamation of these funds.
Definition of Unclaimed Deposits
Unclaimed deposits refer to funds in accounts that have not seen any activity for over ten
years. This includes savings accounts with balances and term deposits that remain
unclaimed after maturity.
Various factors contribute to unclaimed deposits. Accounts may remain open without
closure, fixed deposits can go unclaimed, or heirs may not claim funds from deceased
account holders.
Growth of Unclaimed Deposits
Data from 2018 to 2022 indicates a steady increase in unclaimed deposits, with savings
accounts accounting for 73% of the total. The RBI’s Depositor Education and Awareness
(DEA) Fund rose from ₹62,224.89 crore in 2022-23 to ₹78,212.53 crore in 2023-24.
Initiatives for Claiming Deposits
To assist depositors and heirs, the RBI mandates banks to publish lists of unclaimed
deposits on their websites. These lists include names and addresses but omit sensitive
information like account numbers.
In May 2023, the RBI launched the 100 Days 100 Pays campaign to expedite the
settlement of unclaimed deposits. This initiative targets the top 100 unclaimed deposits in

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each district and has been extended until April 1, 2024.

The UDGAM portal, introduced in August 2023, allows individuals to search for unclaimed
deposits across multiple banks. Users can search using the account holder’s name and
bank details.
New Rules for Inactive Accounts
In January 2024, the RBI established new regulations for identifying inactive accounts.
Banks must review accounts annually and notify account holders about inactivity through
various communication methods.
Banking Laws (Amendment) Bill, 2024
This bill permits up to four nominees for bank deposits and locker items, establishing a
hierarchy for nominations. The State Bank of India has requested rule changes,
suggesting that non-financial activities should keep accounts active, particularly those
linked to government payments. The RBI continues to push for the reduction of inactive
accounts while promoting easier updates for customer details through digital platforms.

GKToday Facts for Exams:

1. UDGAM Portal The UDGAM portal, launched in August 2023, enables users to
search for unclaimed deposits across multiple banks using the account holder’s
name and bank details.
2. DEA Fund The Depositor Education and Awareness (DEA) Fund, managed by RBI,
grew by 26% from ₹62,224.89 crore in 2022-23 to ₹78,212.53 crore in 2023-24,
reflecting rising unclaimed deposits.
3. 100 Days 100 Pays The 100 Days 100 Pays campaign, initiated in May 2023, aims
to resolve unclaimed deposits by settling the top 100 unclaimed deposits in each
district.
4. Banking Laws (Amendment) Bill, 2024 The Banking Laws (Amendment) Bill,
2024, allows up to four nominees for bank deposits and items in lockers,
establishing rules for prioritising nominations.

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India’s Data Centre set for $100 Billion Investment by 2027
Published On Dec 16, 2024

India’s data centre industry is transforming, with investments projected to surpass $100
billion by 2027. The sector has attracted approximately $60 billion in investment from
2019 to 2024, reflecting its appeal to global and local investors.
Key Investment Destinations
Maharashtra and Tamil Nadu have emerged as prime locations for data centres. Their
robust infrastructure and supportive government policies have established them as
leaders in the sector. Mumbai holds the largest share, contributing 49% of India’s total
data centre capacity.

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Major Cities in Data Centre Capacity

In September 2024, Mumbai, Chennai, Delhi-NCR, and Bengaluru account for around 90%
of the country’s data centre stock. These cities benefit from advanced infrastructure,
including cable landing stations, which facilitate services for banking, cloud computing,
and media.
India’s total data centre capacity reached approximately 1,255 MW, covering 19 million
square feet. This capacity is expected to expand to 1,600 MW and 24 million square feet by
the end of 2024. An additional 475 MW is under construction for 2025, primarily in
Mumbai and Chennai.
Occupancy Rates and Demand Drivers
The current occupancy rate for data centres hovers around 75-80%. This demand is largely
driven by sectors such as technology, banking, media, and the public sector. The rise of
generative AI is anticipated to further fuel the demand for data centres.
The data centre sector is expected to grow at an annual rate of 28% from 2023 to 2030.
This growth could contribute approximately $400 billion to India’s economy by 2030,
denoting the sector’s potential for economic development.
Government Support and Incentives
State-level incentives have played a vital role in attracting investments. Maharashtra,
Tamil Nadu, and Telangana have implemented policies that classify data centres as
“essential services,” providing infrastructure benefits and solidifying India’s position in
global digital infrastructure.

GKToday Facts for Exams:

1. DC Industry: India’s data centre industry is projected to exceed $100 billion by
2027. It attracted about $60 billion in investments from 2019 to 2024,
showcasing its global appeal.
2. Generative AI: Generative AI is set to increase demand for data centres. The
sector is expected to grow annually by 28% from 2023 to 2030, contributing $400
billion to India’s economy.
3. Cable Landing Stations: Cable landing stations in Mumbai and Chennai enhance
connectivity for data centres. They support banking, cloud computing, and media
services, making these cities critical hubs.

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3rd India-UK Financial Markets Dialogue
Published On Dec 14, 2024

Senior officials from India’s Ministry of Finance and the UK’s HM Treasury convened to
discuss financial cooperation. This dialogue involved key regulatory bodies, including the
Reserve Bank of India (RBI), the Securities and Exchange Board of India (SEBI), and the
Bank of England (BoE).

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Context and Developments

The dialogue began by reviewing progress since the last meeting in April 2023. Both
nations presented their upcoming strategies for financial sector development. They
agreed to collaborate to leverage new opportunities.
Discussions focused on ongoing reforms in both countries. The emphasis was on
enhancing financial regulation to promote trade and investment. Both sides shared
insights on improving capital markets.
Cross-Border Investment
The dialogue included strategies for increasing cross-border investments. India proposed
allowing its companies to list directly in London and other foreign markets. This initiative
aims to facilitate easier access to international capital.
India updated participants on reforms in its insurance sector. The UK discussed regulatory
changes, including Solvency II. Both sides acknowledged the potential for reinsurance and
welcomed UK investments in Indian insurance.
Pension Schemes and Reforms
Both nations shared updates on pension reforms. The UK introduced changes to its
pension schemes, while India focused on boosting workplace pension participation. They
agreed to explore collaborative efforts to enhance growth in this sector.
Innovation emerged as a critical theme, particularly in Fintech and financial data. Both
countries scheduled the next Fintech Joint Working Group meeting for early 2025. They
discussed the G20 payments roadmap and regulatory sandbox collaboration.
Sustainable Finance Initiatives
Sustainable finance was brought into light as essential for transitioning to a low-carbon
economy. The UK shared recent reforms, while India announced plans for a climate
finance taxonomy. Discussions included green bond issuances and future sustainable
finance efforts.
The dialogue concluded with updates on India’s International Financial Services Centre in
GIFT City. Both countries recognised the importance of continued cooperation to enhance
financial services and commercial opportunities.

GKToday Facts for Exams:

1. RBI The Reserve Bank of India is India’s central bank. It regulates the financial
system and manages monetary policy. Established in 1935, it plays important
role in the economy.
2. SEBI The Securities and Exchange Board of India is the regulatory authority for
securities markets. Established in 1992, it protects investor interests and
promotes market development in India.
3. GIFT City The Gujarat International Finance Tec-City is India’s first smart city. It
aims to provide global financial services. GIFT City promotes international
business and investment opportunities in India.
4. Solvency II Solvency II is an EU legislative framework for insurance companies. It
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focuses on risk management and capital requirements. Implemented in 2016, it

enhances policyholder protection and financial stability.

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Union Budget 2025: India's Fiscal Deficit Challenges Ahead
Published On Dec 14, 2024

India is currently grappling with hurdles in its efforts to reduce the fiscal deficit to 4.5% of
GDP by the fiscal year 2025-26. which peaked at 9.5% of GDP during the pandemic, and
has seen slow recovery. Analysts expressed skepticism about the feasibility of achieving
this ambitious target amidst a sluggish economic growth environment.
About Fiscal Deficit
A fiscal deficit occurs when a government’s expenditures exceed its revenues. This
situation necessitates borrowing or printing money, potentially leading to inflation. High
deficits can adversely impact long-term economic stability and growth.
Fiscal Glide Path Concept
The fiscal glide path is a structured approach to gradually reduce the deficit over time.
Introduced by the NK Singh Committee, it aimed for a deficit reduction to 3% of GDP by
2020, with subsequent targets for 2021 and 2023. The pandemic disrupted these
timelines, complicating the fiscal landscape.
India’s economy is currently growing at a slower pace, creating pressure on the
government to increase spending. This need for expenditure complicates the adherence
to deficit reduction plans. Tax collections have also dropped, further straining fiscal
targets.
Flexibility in Targets
The NK Singh Committee’s recommendations included provisions for flexibility. The
government may exceed the 4.5% target by up to 0.5% of GDP during extraordinary
circumstances, such as economic crises. This allows for a balance between fiscal discipline
and necessary economic support.
Consequences of High Deficits
High fiscal deficits can lead to inflation if financed by excessive money printing or
borrowing. This inflation diminishes consumer purchasing power and discourages
business investment. Increased market borrowing can elevate interest rates, making loans
more expensive and hindering economic activity.
Achieving the 4.5% deficit target by 2025-26 demands meticulous planning and difficult
policy decisions. The government’s ability to balance fiscal responsibility with economic
support will be vital for sustaining India’s economic growth and stability in the years
ahead.

GKToday Facts for Exams:

1. Fiscal Glide Path A fiscal glide path is a structured method to reduce a deficit
gradually. It aims to mitigate risks associated with high deficits while ensuring

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responsible budgeting.
2. NK Singh Committee The NK Singh Committee was established to propose
measures for fiscal discipline. It recommended specific deficit targets, which
were disrupted by the COVID-19 pandemic and economic challenges.
3. Fiscal Deficit A fiscal deficit occurs when a government’s expenditures surpass
its revenues. This situation often leads to borrowing or money printing,
potentially causing inflation and economic instability.
4. Economic Support vs. Discipline Balancing economic support with fiscal
discipline is challenging. The government’s approach to managing deficits will
influence India’s long-term economic stability and growth prospects.

[no_toc]
Banking System Liquidity Tightens Ahead of Tax Payments
Published On Dec 13, 2024

Liquidity in the banking system is tightening as mid-month payments for GST and advance
taxes approach, which has led to increased demand for funds at the Reserve Bank of
India’s (RBI) variable rate repo (VRR) auction. The recent VRR auction saw banks submitting
bids exceeding the RBI’s offered amount.
VRR Auction
In a two-day VRR auction, banks submitted bids totaling ₹62,877 crore. The RBI had only
announced ₹25,000 crore for the auction. Ultimately, the RBI accepted bids worth ₹25,005
crore at an average rate of 6.65%. This reflects heightened liquidity needs among banks.
Previous Auction Data
On December 9, an overnight VRR auction recorded bids of ₹40,630 crore, matching the
RBI’s notified amount. The average rate for this auction was 6.53%. These figures indicate
a consistent demand for liquidity support from the banking sector.
RBI’s Policy Adjustments
Former RBI Governor Shaktikanta Das brought into light that while current liquidity is
sufficient, it may tighten due to tax payments, increased currency circulation, and volatile
capital flows. In response, the RBI announced a reduction in the cash reserve ratio (CRR)
for banks to 4% of net demand and time liabilities (NDTL). This adjustment will occur in
two phases of 25 basis points each, starting on December 14 and December 28, 2024.
Expected Impact of CRR Reduction
The CRR reduction will restore the ratio to its pre-April 2022 level, releasing ₹1.16 lakh
crore into the banking system. This move aligns with the RBI’s neutral policy stance and
aims to alleviate liquidity pressures.
The RBI will actively manage liquidity to maintain stable interest rates and support the
economy’s needs. Continuous monitoring and adjustments are essential to address the
evolving liquidity landscape in the banking sector.

GKToday Facts for Exams:

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1. VRR (Variable Rate Repo): VRR is a monetary policy tool used by the RBI. It
allows banks to borrow funds at a variable interest rate, responding to liquidity
needs.
2. CRR (Cash Reserve Ratio): CRR is the percentage of a bank’s total deposits that
must be held in reserve with the RBI. Changes in CRR affect liquidity and credit
availability in the economy.
3. NDTL (Net Demand and Time Liabilities): NDTL refers to the total liabilities of
banks, including demand deposits and time deposits. It is crucial for calculating
CRR and liquidity management.

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India's Economic Growth Forecast for 2024
Published On Dec 12, 2024

The Reserve Bank of India (RBI) has recently revised its growth forecast for 2024-25 and
estimate stands at 6.6%. In contrast, S&P Global maintains a slightly higher projection of
6.8%, marking differing perspectives on India’s economic trajectory.
Current Economic Landscape
India’s economy grew by 8.2% in the previous financial year. However, growth slowed to
5.4% in the July-September quarter of 2024. This slowdown has prompted several
agencies to adjust their annual growth forecasts downwards. The government views the
weaker second-quarter performance as a temporary setback.
S&P Global’s Forecast
S&P Global anticipates steady growth in 2025. The agency cites strong urban consumption
and growth in the services sector as key drivers. Ongoing infrastructure investments will
also contribute positively. Their growth predictions are 6.8% for 2024-25 and 6.9% for
2025-26.
Monetary Policy Committee
The next meeting of the Monetary Policy Committee (MPC) is scheduled for February. This
will be the first meeting under new Governor Sanjay Malhotra. Experts expect potential
interest rate cuts after 11 consecutive meetings without change. A slight easing of
monetary policy might occur in 2025, especially if inflation trends downward.
Risks to Economic Growth
Several risks could impact the 6.8% growth forecast. Challenges in the manufacturing
sector present concerns. Weak agricultural growth and lingering pandemic effects on
finances are additional risks. These factors could hinder overall economic performance.
Improvements in urban infrastructure and technology are vital. Enhanced job quality
could attract more individuals into the workforce. Stronger public and household finances
will also support economic growth. These elements combined could lead to a more robust
economic recovery in the coming years.

GKToday Facts for Exams:

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1. MPC – The Monetary Policy Committee (MPC) sets key interest rates in India. Its
decisions impact inflation and economic growth. The MPC meets periodically to
review economic conditions.
2. S&P Global – S&P Global is a credit rating agency. It provides financial market
insights and forecasts. Its ratings influence investment decisions globally,
including those in emerging markets like India.

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Consumer Confidence Survey(CCS)
Published On Dec 12, 2024

The Reserve Bank of India (RBI) conducted a survey, Consumer Confidence Survey, from
November 2-11, 2024, indicating concerns about the economy, employment, income, and
spending. Expectations for rising inflation further contribute to this sentiment.
Survey Overview
The RBI’s survey gathered insights from 19 major cities and focused on consumer
perceptions regarding the economy, jobs, inflation, income, and spending. The survey
assessed both current views and future expectations.
Current Situation Index (CSI)
The CSI experienced a decrease of 0.7 points, falling to 94 in November 2024. This is a
decline from 94.7 in September 2024. The drop reflects weaker sentiments about the
economy, despite stable household spending.
Future Expectations Index (FEI)
The FEI showed a slight improvement, rising by 0.5 points to 121.9. This indicates a degree
of optimism for the upcoming year. Consumers anticipate increased spending on essential
and non-essential items.
Current inflation perception rose to 8.4%, an increase of 0.3% from the last survey.
Although expectations for inflation over the next three months decreased slightly to 9.1%,
the one-year outlook rose to 10.1%.
RBI’s Monetary Policy Update
On December 6, the RBI updated its inflation forecast for the financial year 2025. The new
estimate is 4.8%, up from the previous 4.5%. The forecast for the third and fourth quarters
of FY2025 was also increased.
Increased expectations for rising prices are linked to higher food and housing costs. More
consumers foresee inflation impacting their purchasing power in the coming year.

GKToday Facts for Exams:

1. Current Situation Index (CSI) The CSI measures consumer sentiment regarding
the economy. A decrease indicates growing pessimism. It dropped to 94 in
November 2024, reflecting economic concerns.
2. Future Expectations Index (FEI) The FEI gauges consumer optimism about
future economic conditions. It rose to 121.9, suggesting improved expectations.

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Consumers anticipate increased spending on essentials and non-essentials.

3. Reserve Bank of India (RBI) The RBI is India’s central banking institution. It
regulates monetary policy and manages inflation. It raised its inflation forecast
for FY2025 to 4.8% on December 6.
4. Inflation Perception Current inflation perception rose to 8.4%. This reflects
consumer concerns about rising prices. Expectations for inflation over the next
year increased to 10.1%, impacting purchasing power.

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RBI Releases Handbook of Statistics on Indian States 2023-24
Published On Dec 11, 2024

The Reserve Bank of India has published the latest edition of the Handbook of Statistics on
Indian States for 2023-24, which presents crucial data on the regional economies of India.
It includes vital information about demographics, health, and economic indicators. The
data spans from 1951 to 2024, providing a historical context for analysis.
Key Updates in the Publication
The new edition updates prior data and introduces new metrics, features the Gender
Parity Index for school enrolment. Additionally, it includes Gross State Value Added and
afforestation statistics. New insights on state-wise cold and heat wave days are also
provided. The report details power supply positions and school management facilities.
Economic Contributions of States
In the 2023-24 fiscal year, Telangana’s net state domestic product reached ₹13.61 lakh
crore. This marks a 15% increase from the previous year. Telangana is now ranked
seventh among states of India in economic contribution. Maharashtra remains the top
contributor with ₹35.24 lakh crore. Other contributors include Tamil Nadu, Karnataka,
Uttar Pradesh, West Bengal, and Rajasthan.
Wage Disparities Among States
The report reveals notable wage differences across states. Kerala has the highest rural
wages, often double the national average. A male construction worker in Kerala earns
₹894 per day. In contrast, Madhya Pradesh offers the lowest wages at ₹292 per day.
However, states like Madhya Pradesh and Odisha are narrowing the wage gap with rapid
growth.
Trends in Wage Growth
Wage disparities have changed over the years. In 2023-24, Kerala’s construction wages
were three times higher than Madhya Pradesh’s. This compares to a 4.5 times difference
in 2014-15. The data indicates that poorer states are improving their wage structures.
The publication provides valuable vital information about India’s socio-economic
development. It marks progress in reducing regional inequalities. This data serves as an
essential tool for policymakers and researchers.

GKToday Facts for Exams:

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1. RBI: The Reserve Bank of India regulates monetary policy. It also oversees
banking operations, ensuring financial stability and economic growth across the
country.
2. Gender Parity Index: This index measures gender equality in education. It
evaluates school enrolment rates, denoting disparities between male and female
students across regions.
3. Gross State Value Added: Gross State Value Added reflects a state’s economic
performance. It measures the value of goods and services produced, excluding
taxes and subsidies.

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India Surpasses $1 Trillion in FDI
Published On Dec 10, 2024

India has achieved the milestone in foreign direct investment (FDI), with inflows
surpassing $1 trillion between April 2000 and September 2024. This achievement puts
stress on India’s status as a secure investment destination.
FDI Inflows Overview
FDI inflows totaled $1,033.40 billion, including equity, reinvested earnings, and other
capital. The Department for Promotion of Industry and Internal Trade (DPIIT) provides this
data.
Major FDI Contributors
Mauritius leads with 25% of total FDI. Singapore follows closely with 24%. Other
contributors include the U.S. (10%), the Netherlands (7%), Japan (6%), and the U.K. (5%).
The UAE, Germany, Cyprus, and the Cayman Islands each account for 2%.
FDI flows into several sectors. Notable sectors include services, computer software and
hardware, telecommunications, and trading. The construction, automobile, chemicals, and
pharmaceuticals sectors also attract investment.
Growth in FDI from 2014 to 2024
From 2014 to 2024, India received $667.4 billion in FDI. This marks a 119% increase
compared to the previous decade. Manufacturing sector FDI equity inflows grew by 69%,
reaching $165.1 billion.
Government Policies and Future Outlook
The Government of India regularly updates FDI policies. These updates aim to enhance
the investor-friendly environment. Experts anticipate further increases in FDI by 2025 due
to strong economic indicators and improved industrial performance.
Experts identify growth opportunities in private equity, especially in technology. They
suggest reforms in mergers and acquisitions (M&A) rules. Making public takeover
regulations more accommodating for foreign investors is also recommended.
FDI Regulations
Most sectors allow automatic FDI. However, telecom, media, pharmaceuticals, and
insurance require government approval. Certain sectors, like lotteries and real estate, are
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restricted from FDI.

FDI is vital for India’s economic growth, supports infrastructure development and helps
maintain the balance of payments. Additionally, it stabilises the rupee’s value.

GKToday Facts for Exams:

1. DPIIT: The Department for Promotion of Industry and Internal Trade is an
Government of India body. It promotes industrial growth and facilitates foreign
direct investment in various sectors.
2. PLI: Production Linked Incentive schemes encourage manufacturing. They
provide financial incentives to boost production in specific sectors, enhancing
India’s competitiveness in global markets.
3. M&A: Mergers and Acquisitions refer to corporate strategies. They involve the
consolidation of companies, aiming to increase market share and operational
efficiency in various industries.
4. FDI Regulations: Foreign Direct Investment regulations govern foreign
investments. They vary by sector, with some requiring government approval,
ensuring national interests and security are maintained.

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RBI Launches Podcast Series for Public Communication
Published On Dec 09, 2024

The Reserve Bank of India (RBI) Governor Shaktikanta Das announced a new podcast
series to enhance public communication. This initiative aims to improve financial literacy
and will provide clear vital information about monetary policy.
Key Interest Rate and CRR Decisions
The RBI has maintained its key interest rate, and addresses ongoing inflation concerns.
Additionally, the Cash Reserve Ratio (CRR) has been reduced. This reduction aims to inject
liquidity into the economy. The goal is to support banking growth and economic stability.
Educational Initiatives in Various Languages
Governor Das emphasized the importance of financial education. The RBI recently
released booklets in Santali (Ol Chik), which explain financial products and digital banking.
They target children, farmers, entrepreneurs, and senior citizens. Such resources promote
better understanding in rural areas.
AI and Financial Sector Innovations
The RBI is exploring artificial intelligence (AI) applications. A new committee, FREE-AI, is
being established. This committee will manage AI-related risks in finance. It aims to
ensure responsible and ethical AI use. The RBI seeks to strengthen the financial system
through technology.
Focus on Rural and Underserved Areas
Improving financial literacy remains a priority for the RBI. Special attention is given to
rural and underserved communities. Resources are being developed in multiple

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languages. This approach helps bridge the knowledge gap in finance.

The RBI is investigating advanced technologies like machine learning. These technologies
aim to combat digital fraud. Strengthening the financial system is crucial in ‘s digital age.
The RBI is committed to tackling these challenges effectively.

GKToday Facts for Exams:

1. Santali (Ol Chik): Santali is a language spoken by the Santal people in India. It
belongs to the Austroasiatic language family. The RBI’s booklets aim to promote
financial literacy among Santali speakers.
2. FREE-AI: FREE-AI stands for Framework for Responsible and Ethical Enablement
of AI. It is a committee set up by the RBI. The committee focuses on managing
AI-related risks in the financial sector.
3. Cash Reserve Ratio (CRR): CRR is the percentage of a bank’s total deposits that
must be held in reserve with the central bank. It is a tool used to control liquidity
and inflation in the economy.
4. Monetary Policy: Monetary policy refers to the actions taken by a central bank
to manage the money supply and interest rates. It aims to achieve
macroeconomic objectives like controlling inflation and stabilising currency.

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World Bank Pledges $100 Billion to Support Poorest Nations
Published On Dec 09, 2024

Donor countries pledged $100 billion to the World Bank’s International Development
Association (IDA), which targets 78 low-income nations. It aims to provide grants and low-
interest loans and the new total exceeds the previous $93 billion from 2021.
Funding Breakdown
Countries will contribute approximately $24 billion directly, which is slightly higher than
the $23.5 billion from 2021. The fund will also issue bonds and employ financial tools. The
goal is to reach $100 billion by mid-2028. However, this total is below the $120 billion
requested by African leaders.
Contributions by Country
Several nations increased their contributions.
Norway raised its pledge by 50%.
South Korea increased by 45%.
Britain’s contribution grew by 40%,
Spain’s rose by 37%.
U.S. President Joe Biden committed $4 billion, up from $3.5 billion.
In total, 17 countries raised their pledges by over 25%. Ten of these increased by 40% or
more.
Strategic Goals of IDA
World Bank President Ajay Banga brought into light the importance of IDA’s financial

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strategies, will maximise the impact of contributions. They will enhance the bank’s lending
capacity. Funds will support investments in infrastructure, education, and healthcare. They
will also promote private sector growth. Additionally, the funding will address climate
change and global crises.
Over time, 35 countries have shifted from receiving IDA support to becoming donors,
includes nations like China, South Korea, and Chile. Banga described IDA as important
resource. It helps countries improve their economies and prepare for future challenges.

GKToday Facts for Exams:

1. IDA: The International Development Association provides financial assistance to
low-income countries. It aims to reduce poverty through grants and low-interest
loans, encouraging sustainable development and economic growth.
2. Seoul Conference: The conference in Seoul marked a historic commitment of
$100 billion to the IDA. It brought into light international cooperation in
addressing the challenges faced by the world’s poorest nations.
3. Transitioning Countries: Over time, 35 countries have transitioned from IDA
support recipients to donors. This shift reflects their improved economic
conditions and commitment to global development efforts.

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India’s Forex Reserves Show Significant Increase
Published On Dec 07, 2024

India’s foreign exchange reserves have experienced a notable rise. on November 09, the
reserves reached 658.09 billion dollars, an increase of 1.51 billion dollars. This marks the
first rise in nine weeks after the reserves had previously fallen to a five-month low.
Key Components of Forex Reserves
The increase in reserves is primarily attributed to foreign currency assets. These assets
rose by 2.06 billion dollars, bringing the total to 568.85 billion dollars. Special Drawing
Rights (SDRs) also saw a rise. They increased by 22 million dollars, reaching 18.01 billion
dollars.
Role of the Reserve Bank of India
The Reserve Bank of India (RBI) plays an important role in managing these reserves. RBI
Governor Shaktikanta Das emphasized the careful management of foreign exchange
reserves. This management aims to minimize market fluctuations and maintain economic
confidence.
Importance of Forex Reserves
Forex reserves are vital for financial stability, which help in setting market expectations
and provide a buffer against economic shocks. Strong reserves reassure investors and
contribute to overall economic health.
Recent Trends in Forex Reserves
The recent increase breaks a streak of declines over nine weeks. Prior to this, reserves had

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fallen to a low not seen in five months. The latest figures indicate a potential recovery
trend in India’s foreign exchange situation.
Analysts are optimistic about the future of India’s forex reserves. Continued management
by the RBI is expected to sustain these levels. The focus remains on maintaining stability
and confidence in the financial system.

GKToday Facts for Exams:

1. SDRs Special Drawing Rights are an international reserve asset created by the
IMF. They supplement member countries’ official reserves and can be exchanged
among nations.
2. Forex Reserves Forex reserves are essential for a country’s economic stability.
They act as a safeguard against economic shocks and help maintain investor
confidence in the economy.
3. RBI The Reserve Bank of India is the central bank of India. It regulates the
country’s monetary policy and oversees the management of forex reserves to
ensure financial stability.

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Insurance Amendment Bill
Published On Dec 07, 2024

A parliamentary committee has endorsed reforms in the insurance sector, aiming to

enhance the industry’s efficiency and competitiveness. The Insurance Amendment Bill
proposes several key changes.
Composite Licenses for Insurers
The committee supports allowing composite licenses. Insurers would be able to offer both
life and non-life products under one license. This change aims to simplify operations and
expand product offerings.
Capital Requirements Reduced
Lowering capital requirements for insurers is another recommendation. This move will
make it easier for new players to enter the market. It will also encourage existing insurers
to innovate and diversify.
Increased Foreign Investment Limit
The proposed reforms include raising the foreign investment limit. Currently set at 74%, it
would increase to 100%. This change is expected to attract more foreign capital into the
insurance sector.
GST Rate Reductions
The committee has called for reduced GST rates. Specifically, it targets health and
microinsurance products. The Insurance Regulatory and Development Authority of India
(IRDAI) supports this initiative. Collaboration with the finance ministry is essential for
timely implementation.
A strategic plan for public sector general insurers is recommended. This plan aims to

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improve competitiveness and attract investment. Retaining skilled employees is also a

priority. A working group is proposed to develop long-term health insurance solutions.
Cyber Security Protection Authority Proposal
The committee suggests creating a Cyber Security Protection Authority. This authority
would oversee cybersecurity issues in the insurance sector. It would function similarly to
the Directorate General of Civil Aviation (DGCA) for aviation safety.
The committee urges the Ministry of Finance to act swiftly. Implementing these
recommendations will help modernise the insurance sector. It aims to benefit consumers
and enhance overall market performance.

GKToday Facts for Exams:

1. IRDAI: The Insurance Regulatory and Development Authority of India regulates
the insurance industry. It aims to protect policyholders and promote fair
competition among insurers in India.
2. Composite Licenses: Composite licenses allow insurers to offer both life and
non-life products. This simplifies operations and enhances product diversity,
benefiting consumers and promoting market efficiency.
3. Cyber Security Protection Authority: This proposed authority would oversee
cybersecurity in the insurance sector. It aims to ensure data protection and
security, similar to aviation safety management by the DGCA.
4. GST: Goods and Services Tax (GST) is tax reform in India. The committee
recommends lowering GST rates on health and microinsurance to enhance
affordability and accessibility.

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What is MuleHunter.AI?
Published On Dec 07, 2024

The Reserve Bank of India’s innovation unit, RBIH, has introduced MuleHunter.AI, which
aims to combat financial fraud effectively and specifically targets mule accounts used in
illegal activities. Recent statistics show that online financial frauds account for 67.8% of
cybercrime complaints, putting stress on the pressing need for advanced fraud detection
tools.
About Mule Accounts
Mule accounts are bank accounts exploited by criminals, which facilitate the movement of
stolen or illegal funds. Individuals often open these accounts due to misleading promises
of easy money. In some cases, people are coerced into opening them. Mule accounts are
frequently linked to various fraudulent activities, complicating the tracing and recovery of
funds.
The Need for Advanced Detection
Traditional fraud detection methods often fall short. They tend to generate high false
alarms and operate slowly. This inefficiency allows many fraud cases to go undetected.

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RBIH collaborated with banks to analyze existing methods. They identified 19 distinct
patterns of mule account behavior. This analysis was crucial for developing a more
effective solution.
Features of MuleHunter.AI
MuleHunter.AI employs machine learning techniques, which enhances both detection
accuracy and processing speed. The tool scrutinises transaction data and account details.
It identifies suspicious activities more effectively than older systems. By monitoring the
flow of illegal funds, it aids banks in quickly spotting fraud.
Impact on Financial Security
The introduction of MuleHunter.AI signifies a shift towards innovative technology, which
plays a vital role in addressing complex financial crimes. This initiative represents
advancement in creating a safer financial system. The collaboration between RBIH and
banks marks a proactive approach to fraud prevention.

GKToday Facts for Exams:

1. RBIH – The Reserve Bank Innovation Hub focuses on encouraging financial
technology innovations. It aims to enhance the financial ecosystem by promoting
advanced solutions like MuleHunter.AI for fraud detection.
2. Mule Accounts – Mule accounts are exploited by criminals to transfer illicit
funds. Individuals may be misled or coerced into opening these accounts,
complicating recovery efforts for stolen money.
3. MuleHunter.AI – MuleHunter.AI is an AI tool developed to combat financial
fraud. It uses machine learning to improve detection accuracy, enhancing the
identification of suspicious transactions.
4. National Crime Records Bureau – The National Crime Records Bureau compiles
data on cybercrime in India. It reported that online financial fraud constitutes
67.8% of all cybercrime complaints, indicating a critical issue.

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RBI Increases UPI Lite Wallet and Transaction Limits
Published On Dec 06, 2024

The Reserve Bank of India (RBI) has raised the UPI Lite wallet limit from ₹2,000 to ₹5,000,
which aims to encourage digital transactions. The new rules were announced recently and
are effective immediately.
New Wallet Limit
The wallet limit for UPI Lite is now ₹5,000. Previously, it was set at ₹2,000, which allows
users to hold more funds in their UPI Lite wallets. It simplifies transactions for everyday
purchases.
Updated Transaction Limit
The transaction limit for offline payments has increased from ₹500 to ₹1,000. Users can
now make higher-value transactions seamlessly. This enhancement aims to improve user

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experience and promote cashless payments.

Regulatory Framework
These updates are made under the Payment and Settlement Systems Act, 2007. The RBI
continues to focus on promoting digital payments. The changes reflect the growing
demand for secure and efficient payment systems.
Context of Changes
RBI Governor Shaktikanta Das brought into light the need for increased transaction limits.
Digital payments play important role in India’s economy. The changes align with the RBI’s
strategy to enhance the digital payment landscape.
UPI has achieved remarkable milestones since its inception in 2016. In October 2024, it
recorded 16.58 billion transactions in a single month. This growth puts stress on the
increasing reliance on digital payment systems.
UPI Lite Features
UPI Lite allows users to link multiple bank accounts to one mobile app. It facilitates quick
transfers, peer-to-peer transactions, and merchant payments. This flexibility makes UPI
Lite a popular choice among users.

GKToday Facts for Exams:

1. UPI Lite: UPI Lite is a simplified version of the Unified Payments Interface. It
allows users to conduct transactions without entering a PIN for small amounts,
enhancing convenience.
2. Payment and Settlement Systems Act, 2007: This Act regulates payment
systems in India. It aims to promote safe and efficient payment mechanisms,
supporting the growth of digital transactions across the nation.
3. National Payments Corporation of India (NPCI): NPCI was established in 2008.
It manages India’s retail payment systems, including UPI. NPCI aims to create a
robust payment infrastructure for the country.

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What is National Legal Metrology (eMaap) Portal?
Published On Dec 06, 2024

The Government of India is developing a unified online platform called the National Legal
Metrology Portal (eMaap), which aims to connect all State Legal Metrology Departments.
The portal will streamline various processes, enhancing efficiency in legal metrology.
Purpose of eMaap
eMaap will centralize functions related to legal metrology, which will facilitate issuing
licenses, verifying trade instruments, and managing enforcement activities. Currently,
states use separate systems, which complicates compliance for businesses.
Stakeholder Engagement
The Department of Consumer Affairs has engaged multiple stakeholders. Meetings
included state officials, industry representatives, and technology experts. Key industry

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groups like FICCI, CII, PHD, and ASSOCHAM contributed valuable input. Their suggestions
aim to enhance the portal’s efficiency and user-friendliness.
Key Features of the Portal
eMaap will simplify the processes of issuing, renewing, and amending licenses, which will
also enable the verification and stamping of instruments. The portal will manage appeals
effectively, reducing the paperwork burden on businesses.
Benefits for Businesses
Businesses will experience reduced paperwork and improved compliance with the Legal
Metrology Act, 2009. The centralised system will save time and effort in registration and
compliance processes. This efficiency promotes a fair and transparent trading
environment.
Advantages for Consumers
Consumers will benefit from guaranteed accuracy in trade instruments. The portal will
increase trust in market transactions which will also enhance awareness of consumer
rights by providing easy access to relevant certificates.
Governments will enjoy improved data collection for informed decision-making. The portal
will streamline enforcement activities and aid in better policy planning. Overall, eMaap
aims to enhance the transparency and reliability of the legal metrology system.

GKToday Facts for Exams:

1. eMaap eMaap stands for Electronic Metrology Application Portal. It aims to
centralise legal metrology functions in India, enhancing efficiency and
transparency across state departments.
2. FICCI The Federation of Indian Chambers of Commerce and Industry (FICCI) is a
key industry body in India. It plays important role in policy advocacy and
business representation.
3. Legal Metrology Act, 2009 The Legal Metrology Act, 2009 governs the regulation
of weights and measures in India. It ensures accuracy and fairness in trade
practices across the country.
4. ASSOCHAM The Associated Chambers of Commerce and Industry of India
(ASSOCHAM) is a prominent trade association. It represents various sectors and
supports economic growth through policy initiatives.

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India’s UPI Achieves Record Transactions in October
Published On Dec 04, 2024

India’s Unified Payments Interface (UPI) reached a milestone in October 2024, recording
16.58 billion transactions in one month. This marks a 45% increase from the previous year.
The total amount transacted was ₹23.49 lakh crore. UPI continues to revolutionize India’s
digital payment landscape.

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UPI Overview
Launched in 2016 by the National Payments Corporation of India (NPCI), UPI integrates
multiple bank accounts on a single mobile platform. It simplifies transactions for users
across the country. Currently, over 632 banks are connected to UPI.
Impact on Small Businesses
UPI has benefited small businesses and street vendors, which provides a straightforward
method for handling payments. During the COVID-19 pandemic, digital payment adoption
surged as people sought contactless options.
Innovative Features
A standout feature of UPI is the use of voice boxes by payment applications. These devices
announce transaction amounts, aiding small merchants in tracking earnings without
needing to check their phones. This innovation has encourageed trust in digital payments
among hesitant vendors.
Security and Convenience
UPI’s success stems from its simplicity and security. The platform operates 24/7, enabling
real-time transactions with minimal effort. Its virtual address system ensures user privacy,
making digital payments safe and anonymous. Users can manage multiple banking
services within a single app.
International Expansion
UPI is now operational in seven countries, including the UAE and Singapore. Its recent
launch in France marks UPI’s entry into Europe, facilitating smoother payment processes
for Indian consumers abroad.
India leads the world in real-time payments, handling 49% of global transactions in 2023.
As UPI expands internationally, India sets new benchmarks for digital payments and
financial inclusion.

Important Facts for Exams:

1. NPCI: The National Payments Corporation of India is the umbrella organisation
for all retail payments in India. It was established in 2008 to create a robust
payment infrastructure.
2. Voice Boxes: Voice boxes in payment apps announce transaction amounts. They
help small merchants track earnings without checking their phones. This feature
has increased trust in digital payments.
3. Financial Inclusion: Financial inclusion refers to providing access to financial
services for all individuals. UPI plays important role in this by enabling easy
digital payments for the unbanked.
4. Real-Time Payments: Real-time payments allow instant money transfers
between bank accounts. India leads globally, processing 49% of such
transactions in 2023, showcasing its advanced digital payment ecosystem.

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Oilfields (Regulation and Development) Amendment Bill, 2024

Published On Dec 04, 2024

The Rajya Sabha intended to discuss the Oilfields (Regulation and Development)
Amendment Bill, 2024. However, the session concluded without any progress on the
matter. The bill aims to stabilise policies for oil and gas companies, which seeks to
promote international arbitration. The goal is to boost domestic production and reduce
reliance on costly oil imports.
Current Oil Import Situation
India’s oil imports have consistently outpaced exports. Imports are currently three times
higher than exports. This trend marks the urgent need to enhance local production.
Experts stress that domestic output must increase faster than rising energy demand.
The Bill broadens the definition of “mineral oils,” which includes shale oil, gas hydrates,
and tight gas. However, it excludes coal and helium. A new “petroleum lease” is
introduced to streamline exploration and production, which aims to minimise
unnecessary approvals and reduce regulatory confusion.
Expanded Regulatory Powers
The Centre’s regulatory powers will see expansion. The government can now set rules for
emissions reduction. It will also oversee sharing of production facilities and resolving lease
disputes. The Bill promotes using oilfields for green technologies, including hydrogen
production and carbon capture.
Penalties for specific violations will shift from criminal charges to administrative fines.
Increased monetary penalties will ensure compliance while encouraging innovation.
Exploration in Restricted Areas
The Bill allows oil exploration in previously restricted areas, which includes zones
designated as “no-go,” such as missile testing areas. This change could unlock large land
sections for exploration and address past project delays.
Experts caution that substantial reductions in oil imports will depend on sustained
domestic production growth. A stronger emphasis on renewable energy is also essential
for long-term energy security.

Important Facts for Exams:

1. Rajya Sabha: The Rajya Sabha is the upper house of India’s Parliament. It
represents the states and union territories. Members are elected for six-year
terms, ensuring representation of regional interests.
2. Hydrocarbon Exploration and Licensing Policy (HELP): HELP is an Indian policy
aimed at enhancing hydrocarbon exploration. It promotes investment in oil and
gas sectors, aiming to increase domestic production and reduce imports.
3. Gas Hydrates: Gas hydrates are ice-like structures containing methane. They are
found in ocean sediments and permafrost. They are considered a potential
future energy source, though extraction remains challenging.

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CBIC Host Global India Authorised Economic Operator (AEO) Programme
Published On Dec 02, 2024

The Central Board of Indirect Taxes and Customs (CBIC) recently hosted a global India
Authorised Economic Operator (AEO) programme, which took place on November 28-29,
2024, in New Delhi, and involved collaboration with the World Bank. Key figures included
CBIC Chairman Shri Sanjay Kumar Agarwal and Secretary of the Department of Revenue,
Shri Sanjay Malhotra. Representatives from 18 trade partner countries attended.
AEO Programme Overview
The AEO programme is part of the World Customs Organisation’s SAFE Framework, which
aims to enhance global trade security and efficiency. The programme is voluntary,
allowing Indian Customs to improve cargo security, and engage various stakeholders in
the supply chain, including importers and logistics providers.
Programme History
India launched the AEO programme in 2011 and was strengthened in 2016 to better
support trade facilitation. The Directorate of International Customs manages the
programme under CBIC.
On October 31, 2024, India has 5,947 AEO-certified entities. The certification operates
under a three-tier system. An additional tier exists for logistics operators, ensuring
comprehensive coverage.
Mutual Recognition Agreements (MRAs)
India has established MRAs with several countries. These include South Korea, the USA,
and Australia. MRAs allow for mutual recognition of AEO status, simplifying trade
processes.
Joint Action Plans (JAPs)
India has signed Joint Action Plans to pursue MRAs with various nations. These include
Japan, the UK, and South Africa. Recently, a JAP with Brazil was signed to initiate MRA
discussions.
The government aims to expand the MRA programme, which will involve more regional
and bilateral partnerships. Trust and technology will play key roles in enhancing tax
administration and trade security.

Important Facts for Exams:

1. AEO Programme – The Authorised Economic Operator programme enhances
global trade security. Launched in India in 2011, it is part of the World Customs
Organisation’s SAFE Framework.
2. Mutual Recognition Agreements (MRAs): MRAs facilitate mutual recognition of
AEO status. India has established MRAs with several countries, simplifying trade
processes and enhancing international cooperation in customs.
3. Joint Action Plans (JAPs): Japan and the UK are among nations with which India
signed Joint Action Plans. JAPs aim to establish MRAs, encouraging deeper trade

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relationships and cooperation.

4. Directorate of International Customs – This directorate manages the AEO
programme under CBIC. It plays important role in enhancing trade facilitation
and ensuring compliance with international standards.

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Masato Kanda Elected as ADB President
Published On Dec 02, 2024

The Asian Development Bank (ADB) has appointed Masato Kanda as its 11th President. His
term begins on February 24, 2025, and succeeds Masatsugu Asakawa, who will leave office
the day before. Kanda will complete Asakawa’s term, which ends on November 23, 2026.
Background of Masato Kanda
Masato Kanda is 59 years old and currently serves as a Special Advisor to Japan’s Prime
Minister and Minister of Finance. Kanda has nearly 40 years of experience in finance. He
held roles at Japan’s Ministry of Finance. His positions included Vice-Minister of Finance for
International Affairs.
Key Contributions and Experience
Kanda has extensive experience in financial policy. He has worked on education and
science policy. He also contributed to university reform in Japan. He has represented Japan
in global forums such as the G7 and G20. His focus has been on development bank
reforms and pandemic preparedness.
Kanda was instrumental in Japan’s contribution to the Asian Development Fund. Japan’s
contribution exceeded $1 billion. This funding supports various development initiatives
across Asia.
Leadership Roles
Since 2016, Kanda has chaired the OECD Corporate Governance Committee. He has made
decisions at major international development banks. He served as Alternate Executive
Director for Japan at the World Bank.
Educational Qualifications
Masato Kanda holds a Bachelor of Laws from the University of Tokyo. He also earned a
Master’s in Economics from Oxford University. His educational background supports his
expertise in finance and governance.

Important Facts for Exams:

1. OECD – The Organisation for Economic Co-operation and Development promotes
policies for economic growth and social well-being. It consists of 38 member
countries, primarily from Europe and North America.
2. G20 – The Group of Twenty is an international forum for governments and
central bank governors. It addresses major global economic issues and includes
19 countries plus the European Union.
3. Asian Development Fund – The ADB was established in 1966. Its mission is to

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encourage prosperity and eliminate poverty in Asia and the Pacific. The bank is
owned by 69 members, with 49 from the region.

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India Resumes Free Trade Agreements (FTAs)
Published On Nov 27, 2024

India resumed signing Free Trade Agreements (FTAs) in 2021 after a decade-long hiatus.
The country has since completed agreements with Mauritius, the UAE, Australia, and EFTA
countries. However, India is now adopting a more cautious approach to FTAs. This shift
aims to achieve better outcomes and avoid previous pitfalls.
Current Negotiation Status
Negotiations with the UK, Oman, and Peru are ongoing but have slowed. Key issues
include calls to join the RCEP and a review of the UAE FTA. India is also staying out of the
IPEF Trade Pillar, focusing on simplifying trade policies.
Pressure to Join RCEP
There is increasing pressure for India to reconsider joining the Regional Comprehensive
Economic Partnership (RCEP). Supporters argue it would deepen economic ties in Asia and
enhance export competitiveness. Critics warn of potential trade deficits and increased
competition for local businesses.
Impact of the India-UAE FTA
The India-UAE FTA, effective from May 1, 2022, aimed to boost trade by eliminating tariffs.
However, it has led to increase in imports of precious metals from Dubai. India has
responded by reducing import duties on gold and silver, but this is a temporary measure.
India faces pressure to join the IPEF Trade Pillar ahead of the US presidential election.
Joining could compromise India’s control over digital data. Staying out allows India to
protect its digital sovereignty and economic interests.
Need for Enhanced Negotiation Skills
India currently has 14 trade agreements with 25 countries. To improve these deals, the
government should evaluate their effectiveness. Expanding the team of trade negotiators
is crucial. Larger teams can facilitate learning and experience sharing.
India must build expertise in sustainability, labour, and gender issues. These areas are
increasingly relevant in trade agreements. Without this knowledge, India risks accepting
unfavourable regulations from other countries.

Important Facts for Exams:

1. RCEP: The Regional Comprehensive Economic Partnership is a trade agreement
involving Asian nations. Critics warn it may increase India’s trade deficit and
competition for local businesses.
2. IPEF: The Indo-Pacific Economic Framework focuses on trade and digital
cooperation. India has opted out of the Trade Pillar to maintain control over its
digital data and sovereignty.

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3. NITI Aayog: NITI Aayog is India’s policy think tank. It provides strategic and
technical advice to the central and state governments to encourage economic
growth and development.
4. EFTA: The European Free Trade Association consists of four countries. It
promotes free trade and economic integration among its members, which
include Norway, Iceland, Liechtenstein, and Switzerland.

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Apple, Google, and Meta See Faster Growth in India than Globally
Published On Nov 27, 2024

Big tech companies are experiencing rapid growth in India, faster than in other parts of
the world. This trend has been evident over the past four fiscal years and companies like
Apple, Google, and Meta are leading this charge.
Apple’s Growth in India
Apple India has shown remarkable net income growth. In FY21, it grew by 32%. This was
followed by 3% in FY22, 76% in FY23, and 23% in FY24. This consistent double-digit growth
contrasts sharply with Apple’s global performance. The global net income growth dropped
from 64% in FY21 to just 3.3% in FY24. Apple plans to open four new retail stores across
major cities in India. This move indicates strong confidence in the Indian market.
Google’s Performance and Investments
Google India’s net income also grew, which increased from 14% in FY21 to 25% in FY24.
Global net income growth for Google slowed from 89% in FY22 to 23% in FY24. Google has
invested heavily in India, including a $10 billion funding plan. The company focuses on
supporting Indian developers and start-ups. Collaborations with the government on AI
and digital commerce are also in the pipeline.
Meta’s Income Trends in India
Meta’s global net income growth rose from 58% in FY21 to 68.5% in FY24. However,
Facebook India’s income growth decreased from 16% in FY21 to 8.8% in FY24. Despite
regulatory challenges, Meta saw a 131% increase in FY22 and 43% in FY24. The company
remains optimistic about India’s AI leadership potential.
Future Outlook for Tech in India
Experts predict continued growth in India’s tech market. Government policies and strong
consumer demand are key drivers. Geopolitical tensions between the US and China are
prompting more investments in India. Compliance with local regulations is essential for
success. Companies that align with consumer sentiment are likely to thrive.

Important Facts for Exams:

1. Greyhound Research: This firm focuses on technology and market insights. It
provides analysis on trends affecting businesses. The company is known for its
expertise in the Indian tech landscape.
2. AI and Digital Commerce: These are key areas of collaboration between Google

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and the Government of India. They aim to enhance technological advancements.

This partnership reflects India’s growing importance in the global tech
ecosystem.

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What is Aadhaar Enabled Payment System (AEPS)?
Published On Nov 26, 2024

The Aadhaar Enabled Payment System (AEPS) is transforming banking access in rural and
semi-urban regions. It utilizes Aadhaar numbers and biometric authentication for
seamless transactions. This system promotes financial inclusion for underserved
populations.
What is AEPS?
AEPS stands for Aadhaar Enabled Payment System, which allows users to perform banking
tasks using their Aadhaar number and biometric data. Transactions include cash
withdrawals, deposits, balance checks, and money transfers.
How Does AEPS Work?
AEPS connects directly to the National Payments Corporation of India (NPCI) network.
Users authenticate transactions with their biometric information, such as fingerprints or
iris scans. This eliminates the need for traditional banking infrastructure like ATMs or
branches.
Benefits for Rural Users
Visiting bank branches can be difficult for people in rural areas. AEPS enables access to
banking services at local merchants or agents. This convenience reduces travel costs and
time, allowing users to complete transactions near their homes.
AEPS targets underbanked populations with limited access to banking. It brings services
directly to local communities, ensuring everyone can access financial services. Secure
Aadhaar-to-Aadhaar transfers enhance money transfer efficiency.
Time and Cost Savings
Before AEPS, users faced long journeys to distant bank branches for simple transactions.
AEPS allows them to conduct banking activities locally, saving both time and money. Users
can withdraw cash, deposit money, or check balances without travelling far.
Empowering Local Merchants
Local merchants and agents play important role in AEPS. They can provide banking
services without expensive infrastructure. This creates a network of accessible banking
points in communities, enhancing service availability.
AEPS is reshaping the banking landscape for rural India, making financial services more
accessible and efficient.

Important Facts for Exams:

1. AEPS – The Aadhaar Enabled Payment System facilitates banking access using
biometric data. It promotes financial inclusion in rural areas, allowing

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transactions without traditional banking infrastructure like ATMs.

2. NPCI – The National Payments Corporation of India manages payment systems
in India. It enables secure transactions and connections for various digital
payment services, enhancing financial accessibility across the country.
3. Biometric Authentication – Biometric authentication uses unique physical traits
for identity verification. In AEPS, it enhances security and simplifies transactions,
allowing users to perform banking tasks efficiently and securely.

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India and EFTA - Trade Agreement
Published On Nov 25, 2024

Commerce Secretary Sunil Barthwal recently visited Norway, and aimed to discuss the
swift implementation of a free trade agreement. This agreement is between India and the
European Free Trade Association (EFTA). EFTA consists of Iceland, Liechtenstein, Norway,
and Switzerland. The Trade and Economic Partnership Agreement (TEPA) was signed in
March. However, the implementation date remains undecided.
Objectives of the Visit
Barthwal’s primary goal was to enhance trade relations. He sought to open an extensive
EFTA market for Indian goods and services. Additionally, he advocated for an investment
plan worth $100 billion. This plan aims to boost economic ties between India and EFTA
countries.
Meetings and Discussions
During his visit, Barthwal met with Tomas Norvoll. Norvoll is Norway’s State Secretary for
Trade, Industry, and Fisheries. They discussed several key topics. These included
increasing trade and investments. They also focused on improving mobility for Indian
professionals. Another important point was advancing the ratification of the TEPA.
India’s Seafood Exports
India’s seafood exports have increased over the last decade. They have doubled to $7.3
billion, equating to 17.81 lakh metric tonnes. The EU has become India’s second-largest
seafood market. It purchases approximately $0.95 billion worth of seafood annually. India
boasts 500 EU-approved seafood processing companies, indicating industry growth.
Market Share in the EU
India is the EU’s second-largest supplier of shrimp. It holds an 8% market share in this
sector. Additionally, India contributes 12% of the EU’s squid imports. This marks India’s
vital role in the European seafood market.
The discussions signify potential growth in trade relations. Successful implementation of
TEPA could lead to increased economic collaboration. Enhanced trade could benefit both
India and EFTA member countries .

Important Facts for Exams:

1. EFTA – The European Free Trade Association includes Iceland, Liechtenstein,

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Norway, and Switzerland. It aims to promote free trade and economic

integration among its member states.
2. TEPA – The Trade and Economic Partnership Agreement was signed in March. It
seeks to enhance trade relations between India and EFTA, facilitating smoother
economic interactions.
3. Seafood Exports – India’s seafood exports have doubled over ten years,
reaching $7.3 billion. The EU is now India’s second-largest seafood market,
boosting India’s economy.

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Telangana to Establish Joint Consultative Committee with CII
Published On Nov 25, 2024

The Telangana government is actively exploring new industrial policies and a joint
consultative committee with the Confederation of Indian Industry (CII) is on the horizon.
This committee aims to address industrial challenges in the state. Industries and IT
Minister D. Sridhar Babu supports this initiative, which plans to establish the committee
within a week.
Joint Consultative Committee Formation
The committee will include the Special Chief Secretary for Industries and CII leaders will
also participate. This committee mirrors a successful model in Kerala. It will focus on
resolving industrial issues effectively.
Global Capability Centres Policy
Telangana will soon unveil a policy for Global Capability Centres (GCC). This initiative aims
to position Hyderabad as a prime location for global firms. Key sectors targeted include
Life Sciences and banking, financial services, and insurance (BFSI). The policy will enhance
the state’s attractiveness to international companies.
In addition to the GCC policy, new IT and industry policies are in the pipeline. These
policies aim to stimulate growth and innovation. They will address the evolving needs of
the industrial landscape in Telangana.
Industrial Estate Updates
Sridhar Babu discussed the need to update old industrial estates in Hyderabad. He
suggested that industries might consider relocating outside the city. The government will
provide assistance for this transition. This move aims to modernise industrial operations.
Recent Initiatives by the Government
Since the Congress government took office, several initiatives have been launched. A
policy for Micro, Small, and Medium Enterprises (MSMEs) has been introduced. The Young
India Skills University was established through a public-private partnership. The
government is also focusing on enhancing the food processing industry to support the
rural economy.

Important Facts for Exams:

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1. Global Capability Centres (GCC) – GCCs are designed to attract international

firms to Hyderabad. They focus on sectors like Life Sciences and BFSI. This
initiative enhances regional economic growth.
2. Micro, Small, and Medium Enterprises (MSMEs): MSMEs play important role in
Telangana’s economy. They provide employment and support local
entrepreneurship. The government has introduced policies to strengthen this
sector.
3. Youth India Skills University: This university was established through a public-
private partnership. It aims to enhance skill development among young people.
This initiative addresses the skill gap in various industries.
4. Confederation of Indian Industry (CII): CII is a prominent industry association
in India. It promotes the interests of businesses and encourages industrial
development. The organisation collaborates with governments for policy
advocacy.

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Tamil Nadu's SGST Collections Surge in 2024
Published On Nov 25, 2024

Tamil Nadu has reported important growth in its State Goods and Services Tax (SGST)
collections for the fiscal year 2024-25. The increase stands at 20.12%, the highest among
major states of India. Provisional figures indicate collections reached ₹35,414.05 crore, a
rise from ₹29,481.97 crore the previous year.
Comparison with Other States
Gujarat and Uttar Pradesh followed with over 14% growth. Maharashtra’s SGST grew by
13.46%, while Karnataka’s increase was over 10%. Tamil Nadu’s performance outpaced
states like Assam and others, which reported growth between 13.3% and 50.8%.
Factors Contributing to Growth
The Tamil Nadu Commercial Taxes Department attributes this growth to effective
administrative reforms. They implemented strategies to prevent revenue losses. A Tax
Research Unit was established in December 2022. This unit resolved issues related to the
Integrated Goods and Services Tax (IGST).
Taxpayer Identification Initiatives
The department identified taxpayers, including government-owned firms, who were not
utilising IGST credits. They mandated these entities to reverse unused credits, resulting in
increased revenue collections.
Use of Technology in Revenue Management
A Big Data analytics unit was created to analyse revenue losses. This unit focuses on
detailed scrutiny to ensure additional income. The use of technology has enhanced the
department’s ability to track compliance effectively.
Administrative Changes and Compliance
Administrative reforms included creating new divisions and addressing staff vacancies.
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Promotions within the department have also contributed to improved compliance rates.
These changes have encourageed a more efficient tax collection environment.
Despite the absence of major festivals during the first half of the year, SGST collections
remained strong. Officials are optimistic about the continuation of this positive trend in
the upcoming months.

Important Facts for Exams:

1. SGST: The State Goods and Services Tax is revenue source for states in India. It
accounts for about half of a state’s own tax revenue, enhancing fiscal capacity.
2. IGST: The Integrated Goods and Services Tax facilitates inter-state trade in India.
It ensures seamless tax credit flow, promoting efficiency in the national tax
structure and minimising tax cascading.
3. Big Data Analytics: Big Data analytics in tax departments improves revenue
management. It enables detailed scrutiny of transactions, identifying compliance
issues and potential revenue losses through advanced data analysis.
4. Tax Research Unit: The Tax Research Unit was established in December 2022. It
addresses GST-related issues, enhancing tax compliance by identifying non-
compliant taxpayers and resolving systemic problems.

[no_toc]
Confederation of Indian Industry (CII) Launches Strategy Cell
Published On Nov 25, 2024

The Confederation of Indian Industry (CII) has initiated a strategy cell in Coimbatore,
which aims to support businesses in their growth journey. It was established to assist
selected industries in becoming global players.
Structure of the Strategy Cell
The strategy cell consists of six members and will work closely with chosen industries for
six to twelve months. Their role involves listening to industry owners and understanding
their specific goals, which ensures tailored support for each business.
Current Engagements
The initiative began in May and is currently working with seven selected industries. These
industries were chosen over the last six months based on their potential for growth. The
mentors are set to commence their engagement with these businesses shortly.
Expertise and Support Offered
The members of the strategy cell bring over 200 hours of combined experience. Their
services are provided free of charge to the selected industries. Each industry will receive a
dedicated strategy mentor. This mentor will assist in defining medium and long-term
goals for sustainable growth.
Focus on Manufacturing Sector
The initial focus of the strategy cell is on the manufacturing sector. This sector is crucial
for economic development. The aim is to help industries create robust growth plans that

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are sustainable over time.

Benefits for MSMEs
Many small and medium-sized enterprises (MSMEs) often lack resources for mentorship.
This initiative provides valuable guidance to these businesses. It enables them to make
informed strategic decisions and pursue expansion opportunities.
The strategy cell aims to encourage a culture of growth within the local industry. By
providing expert guidance, it hopes to enhance the global competitiveness of the selected
industries.

Important Facts for Exams:

1. CII – The Confederation of Indian Industry is a key organisation in India. It
focuses on promoting industrial growth. CII provides a platform for dialogue
between businesses and government.
2. MSMEs – Micro, Small, and Medium Enterprises play a vital role in India’s
economy. They contribute to employment and industrial output. MSMEs often
face challenges in accessing resources and mentorship.
3. Strategy Cell – The strategy cell comprises six experienced members. It aims to
assist industries in achieving sustainable growth. This initiative provides free
mentorship to enhance business strategies and global competitiveness.

[no_toc]
IMF Approves Sri Lanka's Third Bailout Review
Published On Nov 25, 2024

The International Monetary Fund (IMF) has recently approved the third review of Sri
Lanka’s $2.9 billion bailout on November 23, 2024. The country’s economy remains fragile
despite the approval and will release approximately $333 million, raising total funding to
about $1.3 billion.
Economic Context
Sri Lanka faced its worst financial crisis in over 70 years in 2022, which involved a severe
shortage of dollars and skyrocketing inflation, which peaked at 70%. The economy shrank
by 7.3% during the crisis and contracted by 2.3% the following year.
Signs of Recovery
The IMF has noted signs of economic recovery in Sri Lanka. The Sri Lankan rupee has
appreciated by 11.3% in recent months. Inflation has dropped to zero, and prices
decreased by 0.8% last month. The economy is projected to grow by 4.4% this year,
marking the first growth in three years.
Key Requirements
The IMF emphasised the need for Sri Lanka to complete essential steps. These include
restructuring commercial debt and finalising agreements with official creditors. Adhering
to responsible fiscal policies is crucial for restoring debt stability.

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Debt Restructuring
Sri Lanka must complete a $12.5 billion debt restructuring with bondholders. President
Anura Kumara Dissanayake aims to finalise this restructuring in December. The country
will negotiate debt agreements with bilateral creditors, including Japan, China, and India,
as part of a $10 billion restructuring plan.

Important Facts for Exams:

1. IMF: The International Monetary Fund provides financial assistance to countries.
It aims to ensure global monetary cooperation. It also promotes sustainable
economic growth and reduces poverty worldwide.
2. Debt Restructuring: Debt restructuring involves altering the terms of existing
debt. It can include extending repayment periods or reducing interest rates. This
process aims to improve financial stability.
3. Sri Lankan Rupee: The Sri Lankan rupee is the currency of Sri Lanka. It has
appreciated by 11.3% recently. Currency stability is crucial for economic recovery
and growth.

[no_toc]
India Among Top 10 Countries with AI Readiness
Published On Nov 23, 2024

India is emerging as a leader in Artificial Intelligence (AI) readiness, highlighting its strong
potential to enhance public services. The Boston Consulting Group’s report assesses AI
readiness across 73 countries. India ranks second globally for AI specialists and third for
research publications.
AI Ecosystem Overview
The report indicates that over 70% of countries struggle in areas like ecosystem
participation and skills development. Despite these challenges, India has shown important
progress in AI integration across various sectors.
AI impacts multiple sectors in India. Business services represent 16% of GDP and can
enhance government operations. The retail sector, contributing 10% of GDP, can reduce
waste and optimize supply chains. Public services, accounting for 6% of GDP, can improve
service delivery and emergency responses.
Agriculture and Productivity
Agriculture, forestry, and fisheries, which contribute 17% of GDP, stand to gain from AI
through precision farming and risk management. The construction sector, at 8% of GDP,
can leverage AI for better infrastructure planning. Arts and personal services can also
benefit from AI in managing public facilities.
Recommendations for Progress
To harness AI’s potential, the report suggests several measures. Strengthening
infrastructure and enhancing AI research are crucial. Expanding workforce training,
particularly in rural areas, is essential. Investments in research hubs and cloud capabilities

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are recommended.
Importance of Public-Private Partnerships
Public-private partnerships are vital for AI advancement. Collaborative efforts can drive
innovation and resource sharing. Creating regulations is necessary to ensure ethical AI
use and prevent biases.
Aparna Bharadwaj urges policymakers to prepare for an AI-driven future. Actions should
focus on resilience, productivity, job creation, and global competitiveness. Embracing AI
can modernise services and strengthen India’s position in the global market.

Important Facts for Exams:

1. BCG: Boston Consulting Group (BCG) is a global management consulting firm. It
provides insights on business strategies. BCG’s reports influence policies and
practices across various sectors worldwide.
2. Precision Farming: Precision farming uses technology for efficient crop
management. It enhances productivity and reduces waste. This approach relies
on data analysis and satellite imagery for informed decision-making.
3. Public-Private Partnerships: Public-private partnerships (PPPs) combine
resources from government and private sectors. They drive innovation and
improve service delivery. PPPs are crucial for developing infrastructure and
enhancing public services.

[no_toc]
India's Foreign Exchange Reserves 2024 - Update
Published On Nov 23, 2024

India’s foreign exchange reserves are crucial for economic stability. On November 15, they
stood at $657.89 billion which includes $65.75 billion in gold. The reserves had previously
reached $675.65 billion on November 8. A decline of $17.7 billion occurred due to the
Reserve Bank of India (RBI) selling dollars to stabilize the rupee.
Special Drawing Rights (SDR)
The SDR portion of India’s reserves is $18.06 billion. SDRs are international reserve assets
created by the International Monetary Fund (IMF). They provide liquidity to the global
economy. SDRs can be exchanged among member countries.
This financial year, India’s reserves have increased by $11.5 billion. In September, reserves
peaked at $704.885 billion. This was a record high. India ranks fourth globally in foreign
exchange reserves, following China, Japan, and Switzerland.
Role of the Reserve Bank of India (RBI)
The RBI manages the foreign exchange reserves, which intervenes to manage the rupee’s
value. When foreign investors withdraw funds, the RBI sells dollars to prevent a sharp
decline. This stabilisation is essential for economic confidence.
Foreign exchange reserves are vital for economic health. They provide a buffer against
external shocks. High reserves enhance investor confidence. They also ensure that the

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country can meet its international payment obligations.

Important Facts for Exams:

1. Special Drawing Rights (SDR): SDRs are international reserve assets created by
the IMF. They provide liquidity to the global economy and can be exchanged
among member countries for currencies.
2. Foreign Exchange Reserves: Foreign exchange reserves are crucial for
economic stability. They provide a buffer against external shocks and enhance
investor confidence in a country’s economy.
3. Reserve Bank of India (RBI): The RBI manages India’s foreign exchange
reserves. It intervenes to stabilise the rupee when foreign investors withdraw
funds, ensuring economic confidence and stability.

[no_toc]
India and Maldives Enhance Currency Cooperation
Published On Nov 23, 2024

The Reserve Bank of India (RBI) and the Maldives Monetary Authority (MMA) have recently
signed a very important agreement, which aims to facilitate transactions using local
currencies. The Indian Rupee (INR) and the Maldivian Rufiyaa (MVR) will now be used for
invoicing and payments between both countries.
Agreement Details
The agreement was signed by RBI Governor Shaktikanta Das and MMA Governor Ahmed
Munawar. It allows businesses to conduct trade in their currencies. This initiative aims to
simplify cross-border transactions.
Utilizing local currencies will reduce transaction costs, which will also speed up payment
settlements. Businesses can avoid foreign exchange risks associated with third currencies,
which will enhance financial efficiency in trade.
Previous Agreements
Last year, the RBI signed a similar agreement with the Central Bank of the UAE. This
indicates a trend towards promoting local currencies in international trade. Such
agreements aim to strengthen economic ties with multiple nations.
Economic Impact
The collaboration is expected to boost trade between India and the Maldives. It will
improve financial relationships and encourage economic cooperation. The agreement is
step towards enhancing bilateral trade.
Future Prospects
The agreement may encourage more businesses to engage in trade using INR and MVR. It
can lead to increased investments between the two countries. This initiative may also
develop the foreign exchange market for both currencies.
Strengthening economic ties is crucial for both nations. This agreement reflects a
commitment to deeper cooperation. It marks the importance of regional partnerships in

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enhancing economic stability.

Important Facts for Exams:

1. RBI: The Reserve Bank of India regulates the country’s monetary policy. It plays
important role in maintaining financial stability and promoting economic growth
through various initiatives and agreements.
2. MMA: The Maldives Monetary Authority is responsible for the country’s
monetary policy. It aims to ensure financial stability and promote sustainable
economic growth through effective regulation and financial oversight.
3. INR: The Indian Rupee is the official currency of India. It is one of the most
traded currencies in Asia and plays role in regional trade agreements and
economic cooperation.
4. MVR: The Maldivian Rufiyaa is the currency of the Maldives. It is essential for
domestic transactions and increasingly important for international trade,
especially with India through recent agreements.

[no_toc]
Supreme Court Rules on Telecom Tax Credits
Published On Nov 22, 2024

The Supreme Court of India recently made a landmark ruling, which allows telecom
companies to claim tax credits for expenses related to mobile towers and pre-fabricated
buildings (PFBs). The ruling clarifies the classification of these structures under tax
regulations.
Context of the Ruling
The ruling addressed inconsistencies between the Bombay and Delhi High Courts.
Bombay High Court had previously denied mobile towers and PFBs tax credits. In contrast,
the Delhi High Court supported the telecom companies’ claims, recognizing the
importance of these structures.
Key Components Defined
Mobile towers and PFBs are now classified as “capital goods” or “inputs.” This classification
is crucial for telecom companies. It allows them to claim tax credits for excise duties paid
on these items, which can offset service tax obligations.
Importance of Mobile Towers and PFBs
Mobile towers are essential for effective signal transmission. They work alongside
antennas and Base Transceiver Stations (BTS). PFBs are vital as they house equipment like
batteries, rectifiers, and generators. These components are necessary for maintaining
telecom operations.
Functional Utility Test
The Supreme Court employed a “functional utility test” in its decision. This test assesses
whether an item is necessary for delivering services. The court concluded that mobile
towers and PFBs are integral to providing mobile communication on a large scale.

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Revenue Department’s Argument

The Revenue Department argued that mobile towers and PFBs are immovable property.
They claimed this classification disqualified them as “goods” for tax purposes. The
Supreme Court countered this argument, stating that temporary attachment to the
ground does not negate their status as goods.
Implications for Telecom Companies
This ruling benefits telecom companies. They can now access tax credits that enhance
their financial position. The decision puts stress on the importance of infrastructure in the
telecom sector.

Important Facts for Exams:

1. CENVAT: CENVAT stands for Central Value Added Tax. It allows businesses to
claim credits on excise duties paid on inputs, thereby reducing overall tax liability
on goods produced.
2. PFBs: Pre-Fabricated Buildings (PFBs) are structures made from factory-
produced components. They are crucial for housing telecom equipment,
enhancing operational efficiency in mobile communication systems.
3. BTS: Base Transceiver Stations (BTS) are essential components of mobile
networks. They facilitate wireless communication between mobile devices and
the network, enabling effective signal transmission.

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ASEAN-India Free Trade Agreement (AIFTA) Review
Published On Nov 21, 2024

The ASEAN-India Free Trade Agreement (AIFTA) was initiated in 2010, which aimed to
enhance trade in goods and services. After 15 years, a review is necessary to assess its
effectiveness. India has experienced a growing trade deficit with ASEAN countries, which
imbalance stems from unequal duty preferences and market access.
Key Issues with AIFTA
India granted more benefits to ASEAN countries than it received. Indian import duties
were higher compared to those of ASEAN, which allowed ASEAN exporters easier access to
Indian markets. India also reduced tariffs more rapidly than anticipated, which offered
ASEAN companies immediate market access without reciprocal benefits for Indian firms.
Tariff Reduction Disparities
India’s tariff reduction was inconsistent across ASEAN nations. The CLMV group
(Cambodia, Laos, Myanmar, Vietnam) received extended timelines. This preferential
treatment strengthened their competitive position in India. Consequently, India faced a
larger trade deficit, particularly with Vietnam.
ASEAN countries have robust manufacturing networks, which gives them edge over India.
Indian manufacturers encounter barriers in sectors like two-wheelers. To compete, they
often need to establish operations in ASEAN nations.

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Impact of RCEP
The Regional Comprehensive Economic Partnership (RCEP) has intensified competition. It
further integrated ASEAN with China. Investment shifts from India to ASEAN have
occurred, particularly in electronics and machinery.
Trade Evasion Tactics
Some industries exploit the FTA to circumvent Indian regulations. For instance, cheaper
Chinese steel is routed through ASEAN to avoid tariffs. This practice negatively impacts
India’s steel sector. Similarly, raw gold is processed in ASEAN before being exported to
India at reduced duties.
Future Recommendations
India should renegotiate AIFTA to address these imbalances. Employing game theory
could help achieve fair negotiations. India must advocate for improved market access in
key sectors. Strengthening initiatives like “Make-in-India” is vital. Creating an investor-
friendly environment is also essential. Revising the FTA with stricter rules of origin will
help ensure equitable market access.

Important Facts for Exams:

1. AIFTA: The ASEAN-India Free Trade Agreement was launched in 2010. It aimed to
enhance trade between India and ASEAN countries. However, it has led to a
growing trade deficit for India.
2. CLMV: The CLMV group includes Cambodia, Laos, Myanmar, and Vietnam. They
received preferential treatment in tariff reductions. This has given them a
competitive edge in the Indian market.
3. RCEP: The Regional Comprehensive Economic Partnership integrates ASEAN with
China. It has intensified competition for India. Many companies shifted
investments to ASEAN, affecting India’s electronics and machinery sectors.
4. Make-in-India: This initiative aims to strengthen India’s manufacturing sector. It
focuses on attracting investment in key industries. Enhancing competitiveness is
crucial for India’s economic growth and trade balance.

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India-Australia Annual Summit 2024
Published On Nov 21, 2024

Prime Minister Narendra Modi and Australian Prime Minister Anthony Albanese met
during the G20 summit in Rio de Janeiro. They reviewed their Comprehensive Strategic
Partnership as they approach its fifth anniversary in 2025 and discussed various areas of
collaboration.
Economic Cooperation
The leaders expressed satisfaction with trade growth under the Economic Cooperation
and Trade Agreement (ECTA). They outlined plans for an ambitious Comprehensive
Economic Cooperation Agreement (CECA). India’s “Make in India” initiative complements

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Australia’s “Future Made in Australia” strategy, aiming to boost job creation and economic
growth. The extension of the Australia-India Business Exchange program was welcomed.
Climate Change Initiatives
The Prime Ministers brought into light the shared goal of tackling climate change. They
launched the India-Australia Renewable Energy Partnership. This partnership focuses on
solar power, green hydrogen, energy storage, and workforce training.
Defence and Security Cooperation
Modi and Albanese noted increasing cooperation in defence and security. They discussed
joint military exercises and maritime security. The leaders encouraged participation of
Indian defence industries in Australian defence events.
The summit also focused on educational and people-to-people connections. New
consulates in Bengaluru and Brisbane were welcomed. The leaders discussed new visa
programs to enhance mobility between the two nations.
Regional and Global Affairs
The Prime Ministers reaffirmed their commitment to a peaceful Indo-Pacific region. They
emphasised the importance of freedom of navigation and international law. Discussions
included cooperation in the Quad and ASEAN, addressing regional challenges such as
climate change and terrorism. The leaders concluded their summit by looking ahead to
the next Annual Summit in 2025. This will mark the fifth anniversary of their
Comprehensive Strategic Partnership.

Important Facts for Exams:

1. Gaganyaan – Gaganyaan is India’s first human spaceflight programme. It aims
to send Indian astronauts into space. The mission signifies India’s growing
capabilities in space exploration and technology.
2. Quad – The Quad refers to the Quadrilateral Security Dialogue. It includes India,
Australia, the United States, and Japan. The group focuses on promoting a free
and open Indo-Pacific region.
3. ECTA – The Economic Cooperation and Trade Agreement (ECTA) enhances trade
relations between India and Australia. It aims to reduce tariffs and improve
market access, encouraging economic growth for both nations.
4. CECA – The Comprehensive Economic Cooperation Agreement (CECA) is a
proposed trade agreement. It seeks deeper economic ties between India and
Australia, focusing on various sectors, including services and investment.

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GAIL Wins SAP ACE Award for Financial Innovation
Published On Nov 20, 2024

GAIL (India) Limited has achieved notable recognition and the company has won the SAP
ACE Award 2024 for Best Financial Transformation. This marks the second consecutive
year of receiving this award. The accolade was presented to R K Jain, GAIL’s Director of

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Finance.
Digital Upgrade Overview
GAIL has implemented a digital upgrade, which focuses on the trust accounting process.
The integration of SAP Treasury and Risk Management (TRM) with Fiori, Workflow, and
Adobe Forms was very important. This solution addressed previous challenges in
standardizing trust business operations.
Key Features of the New System
The new system offers several advanced features, which provide automatic interest
calculations for trust accounts. Real-time reconciliations enhance financial accuracy. The
Fiori interface facilitates smoother updates for PF and pension cards. Additionally, it
includes workflow approvals for efficient document management.
Compliance and Regulatory Benefits
The system ensures compliance with financial regulations. It streamlines approval
processes and enhances document management. This focus on compliance is crucial for
government organisations and public sector undertakings (PSUs).
GAIL’s innovation sets a new standard for trust accounting. It improves financial
operations within India’s public sector. The advancements contribute to the overall
efficiency of public financial management.
Significance of SAP ACE Awards
The SAP ACE awards recognise excellence in business innovation. They highlight IT
advancements that boost India’s digital economy. GAIL’s achievement puts stress on the
importance of digital transformation in public sector finance.

Important Facts for Exams:

1. TRM – Treasury and Risk Management is a component of SAP software. It
enhances financial control and risk assessment. This integration improves trust
accounting processes .
2. PF – Provident Fund is a government-mandated savings scheme. It provides
financial security for employees. The system updates for PF cards are now
streamlined through GAIL’s new digital solution.
3. PSUs – Public Sector Undertakings are government-owned corporations. They
play a vital role in India’s economy. GAIL’s innovations greatly benefit these
organisations in financial management.
4. SAP ACE – The SAP ACE Awards celebrate excellence in business innovation. They
recognise outstanding achievements in digital transformation. GAIL’s win puts
stress on the importance of IT advancements in public finance.

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Income Tax Campaign for Foreign Assets Awareness
Published On Nov 20, 2024

The Income Tax Department has initiated a new campaign that targets taxpayers with

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high-value foreign income or assets, which aims to enhance compliance for the
Assessment Year 2024-25. The Central Board of Direct Taxes (CBDT) is leading this effort.
Campaign Objectives
The primary goal is to ensure accurate reporting of foreign assets and income. Taxpayers
are encouraged to fill out Schedule Foreign Assets (Schedule FA) and Schedule Foreign
Income (Schedule FSI) in their Income Tax Returns (ITRs). The campaign also aims to raise
awareness about the importance of compliance.
Communication Strategy
The CBDT will send informational messages through SMS and email. These messages will
target taxpayers who have filed their ITRs for AY 2024-25. The recipients are identified
through data obtained from international agreements. This data indicates potential
foreign accounts, assets, or income.
Use of Technology
The campaign leverages technology for efficient communication, which employs data
from the Automatic Exchange of Information (AEOI) to identify taxpayers. This approach
streamlines the process of reporting foreign assets and income.
Target Audience
The focus is on individuals who may not have fully reported their foreign assets. This
includes taxpayers with high-value foreign investments. The campaign aims to assist
those who may be unaware of their reporting obligations.
Compliance with tax regulations is crucial. Accurate reporting helps avoid penalties and
legal issues. The campaign puts stress on the significance of transparency in financial
dealings.
Next Steps for Taxpayers
Taxpayers are advised to review their ITRs. They should ensure that all foreign income and
assets are reported. Seeking professional advice may be beneficial for complex situations.

Important Facts for Exams:

1. AEOI: The Automatic Exchange of Information is a global standard for the
exchange of financial account information between countries. It aims to combat
tax evasion effectively.
2. Schedule FA: Schedule Foreign Assets is a section in Income Tax Returns. It
requires taxpayers to report their foreign assets accurately. Non-compliance can
lead to penalties and legal consequences.
3. CBDT: The Central Board of Direct Taxes is the apex body for tax administration
in India. It formulates policies and oversees the implementation of tax laws in the
country.

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India’s Exports Surge in October 2024
Published On Nov 19, 2024

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India’s export landscape experienced remarkable growth in October 2024 with the core
group of exports rising by 27.7% compared to the previous year and this growth spanned
various sectors reflecting a robust economic performance.
Key Export Sectors
Engineering goods led the charge with a 39.4% increase. Electronic goods followed
closely, showing a staggering 45.7% growth. Chemicals also performed well, rising by
27.4%. Drugs and pharmaceuticals saw an 8.2% increase, indicating steady demand.
Agricultural Export Highlights
Agricultural exports thrived particularly rice, which surged by 85.8%, which followed the
government’s decision to lift rice export restrictions. Other agricultural products like
cashews (7.2%), fruits and vegetables (15.9%), tea (9.3%), and spices (30.9%) also reported
important growth.
Labour-Intensive Sector Performance
Labour-intensive sectors showed strong export performance. Readymade garments
increased by 35.1%. Handicrafts rose by 32.7%, and leather products grew by 12.3%.
However, ceramic products and glassware experienced a decline of 6.1%.
Import Trends
Imports of gold fell by 1.4%, and imports of precious stones dropped by 29%. Electrical
goods imports remained positive but slowed to 8.7%. Conversely, vegetable oil imports
surged by 50.9%, reversing the previous month’s decline.
Overall Export Growth
India’s total merchandise exports reached $39.2 billion in October, marking a 17.3% year-
on-year increase. This growth represents the fastest rate in 28 months. Services exports
also grew, increasing by 14.6% in September.
Services Trade Surplus
India’s services trade surplus expanded to $16.1 billion in September. This figure
represents an increase from $13.8 billion in September 2023. The surplus is the highest
recorded since January 2024.

Important Facts for Exams:

1. CRISIL: CRISIL is a global analytical company based in India. It provides ratings
research risk and policy advisory services. The firm is a subsidiary of S&P Global
Inc.
2. Merchandise Exports: Merchandise exports refer to the sale of physical goods
to foreign countries. They are important component of a nation’s economy and
trade balance.
3. Labour-Intensive Sectors: Labour-intensive sectors rely heavily on human
labour rather than capital. They often include textiles garments and handicrafts.
These sectors are vital for job creation in developing economies.

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Global Freight Summit 2024

Published On Nov 19, 2024

The Global Freight Summit 2024 commenced in Dubai on November 18, marking its third
edition since 2022. Hosted by DP World, the event will conclude on November 20 with over
5,000 industry leaders from 155 countries participating, focusing on the theme of Acting
to reach the opportunities of tomorrow.
Key Themes of the Summit
The event addresses four primary areas, which include the use of AI and blockchain in
business. Strategies for navigating volatile global markets are also discussed. Sustainable
shipping practices are the focus. Additionally, the summit examines building robust trade
routes amid geopolitical tensions and natural disasters.
Notable Participants
Prominent Indian companies are participating in the summit. Wipro, Tech Mahindra, and
SRM Tech are key contributors. Renowned figures such as Sachin Tendulkar and Shah
Rukh Khan will join the discussions. Royston Braganza, CEO of Grameen Capital India, is
also a featured speaker.
Focus on Digital Solutions
This year’s discussions will centre on implementing digital solutions. Challenges in
adopting new technologies will be a major topic. Businesses will explore ways to adapt to
shifting trade dynamics. The growing demand for eco-friendly shipping practices will also
be brought into light.
Supply Chain Diversification
The summit will pay special attention to diversifying supply chains. Managing risks in
global trade routes is crucial for businesses. Solutions to these challenges will be a key
focus during sessions.
Networking Opportunities
DP World has organised a comprehensive programme. Interactive sessions and
discussions will facilitate knowledge sharing. Keynote speeches from industry experts will
enhance understanding. The summit serves as a networking platform for government
officials and trade groups. It aims to encourage strategic partnerships among business
leaders.

Important Facts for Exams:

1. DP World: DP World is a global logistics company headquartered in Dubai. It
operates numerous ports and terminals worldwide. The company focuses on
enhancing trade and supply chain efficiency.
2. Grameen Capital India: Grameen Capital India is a social investment firm. It
aims to provide financial services to underserved communities. The firm
supports social enterprises and promotes financial inclusion in India.
3. Sustainable Shipping: Sustainable shipping practices reduce environmental
impact. They include using cleaner fuels and optimising routes. The focus is on

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balancing economic growth with ecological responsibility.

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Symbiosis University First Overseas Campus at Dubai
Published On Nov 18, 2024

India and the UAE have deepened their educational partnership with Symbiosis
International University opening its first overseas campus at Dubai Knowledge Park. This
event marks an important milestone in the relationship between the two nations.
Key Figures Present
Dr. S. Jaishankar, India’s External Affairs Minister, presided over the inauguration. Sheikh
Nahyan bin Mubarak Al Nahyan, UAE’s Minister of Tolerance and Coexistence, also
attended. Symbiosis University received full accreditation from the UAE’s Commission for
Academic Accreditation. This recognition marks the university’s commitment to quality
education.
Program Offerings
The campus will offer various programmes in management, technology, and media. It
aims to develop essential 21st-century skills. The philosophy of Vasudhaiva Kutumbakam
guides its educational approach, promoting global collaboration. The inauguration aligns
with India’s National Education Policy 2020. This policy encourages internationalisation
and the establishment of offshore campuses.
Impact on Students
Over 300,000 students from India benefit from educational frameworks in the UAE. The
new campus will further enhance these opportunities. This development builds on the
momentum from Prime Minister Narendra Modi’s 2015 visit. It follows the Comprehensive
Economic Partnership Agreement (CEPA) between India and the UAE.
Focus on Human Capital
Dr. Jaishankar emphasised the importance of human capital for India’s progress.
Innovations in AI, clean energy, and sustainable development are crucial areas of focus.
Sheikh Nahyan’s Address
Sheikh Nahyan brought into light the deep ties between India and the UAE. He noted the
UAE’s commitment to a knowledge-based economy. Education is vital for encouraging
understanding and stability. Symbiosis University chose Dubai for its diverse expatriate
community. Approximately 85% of Dubai’s 3.5 million residents are expatriates.
Alignment with Economic Agenda 33
The establishment supports Dubai’s Economic Agenda 33. This agenda aims to transform
the emirate’s economy through human capital development. The initiative aligns with
both India’s NEP and the UAE’s vision for an internationalised education system. Both
nations aspire to enhance their global educational competitiveness.

Important Facts for Exams:

1. Vasudhaiva Kutumbakam – This ancient Indian philosophy translates to the

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world is one family. It promotes global unity and cooperation across cultures and
nations in education and beyond.
2. Dubai Knowledge Park: Established as a hub for education and research. It
encourages innovation and collaboration among educational institutions. The
park supports Dubai’s ambition to be a global knowledge economy.
3. Comprehensive Economic Partnership Agreement (CEPA): This agreement
between India and the UAE aims to enhance bilateral trade and investment. It
facilitates economic cooperation in various sectors including education and
technology.
4. Economic Agenda 33: Dubai’s strategic plan focuses on economic
transformation over the next decade. It prioritises human capital development
and aims to enhance the education sector .

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State Bank of India is seeking a $1.25 Billion Loan: India's Largest Bank Loan of
2024
Published On Nov 18, 2024

State Bank of India (SBI) plans to borrow up to $1.25 billion, making it the biggest dollar
loan from India’s financial sector in 2024. The loan is being arranged by CTBC Bank, HSBC
Holdings Plc, and Taipei Fubon Bank. It will have a five-year term and an interest margin of
92.5 basis points over the Secured Overnight Financing Rate.
Purpose of the Loan
SBI aims to use the funds for general corporate purposes. The loan is being facilitated
through SBI’s branch at the Gujarat International Finance Tec-City. This location serves as
India’s newest financial hub.
The loan deal is being syndicated to other financiers. This means that multiple financial
institutions may participate in funding the loan. Syndication helps spread risk among
lenders.
Recent Trends in Foreign Borrowing
SBI is not alone in raising foreign currency debt. Other local borrowers are also seeking
dollar-denominated loans this year. Non-banking finance companies, known as shadow
banks, are particularly active in this space.
Examples of Other Borrowers
Cholamandalam Investment & Finance Co. is looking for a $300 million syndicated term
facility. Union Bank of India’s Sydney branch is marketing a three-year loan of A$125
million ($81 million). Bank of Baroda is raising $750 million in borrowing.
Decline in Dollar Loan Volume
Despite these activities, India’s dollar loan volume has decreased by 27% this year. The
total volume stands at $14.2 billion. This decline is attributed to the lack of large company
borrowings.
In July, SBI raised a $750 million, three-year loan. This indicates a trend of ongoing
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borrowing despite market challenges.

Important Facts for Exams:

1. CTBC Bank: CTBC Bank is a Taiwanese bank headquartered in Taipei. It is one of
the largest private banks in Taiwan. The bank offers various financial services
globally.
2. Gujarat International Finance Tec-City: Gujarat International Finance Tec-City
is India’s first International Financial Services Centre. It aims to attract global
financial services firms. The city is located in Gandhinagar, Gujarat.
3. Shadow Banks: Shadow banks are financial intermediaries that operate outside
traditional banking regulations. They provide similar services to banks. Their
activities can increase systemic risk in the financial system.

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CII Mangalore Integrate 2024 Conclave
Published On Nov 18, 2024

The Confederation of Indian Industry (CII) Mangaluru Chapter hosted CII Mangalore
Integrate 2024, which featured an exhibition, a buyer-seller meet, and a conference. The
theme was ‘Connecting New Business’ which gathered industry leaders, innovators,
policymakers, and business professionals.
Significance of MSMEs
Dakshina Kannada Zilla Panchayat CEO K. Anandh inaugurated the event. He discussed
the crucial role of Micro, Small, and Medium Enterprises (MSMEs) in the Indian economy.
MSMEs contribute to over 10 million jobs. Initially focused on manufacturing, they now
operate in trading and services. Government policies have simplified regulations. Public
procurement initiatives support their growth.
Resource Distribution and Training
Anandh stressed the importance of equitable resource distribution. He called for more
training centers in both urban and rural areas. This approach aims to enhance skills and
opportunities for all.
Evolution of South Canara
CII Karnataka past Chairman T. Sudhakar Pai shared insights on South Canara’s
transformation. Once among India’s poorest regions, it now thrives due to technology and
education. The literacy rate has improved from 12%. Pai brought into light the legacy of
Syndicate Bank. It celebrates its centenary next year. The bank has supported local
industries and entrepreneurs since its inception.
Event Participation and Impact
CII Mangalore Integrate 2024 attracted around 120 delegates. Participants included
representatives from industry and academia. Fifteen exhibitors showcased their
innovations. This event telld Mangaluru’s potential as an emerging industrial hub. It
brought into light the need for collective efforts to tackle business challenges. Sustainable

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growth remains a key focus for attendees.

Important Facts for Exams:

1. MSMEs: Micro Small and Medium Enterprises are vital to India’s economy. They
create over 10 million jobs. Their focus has shifted from manufacturing to
trading and services.
2. South Canara: South Canara was once one of India’s poorest regions. Its literacy
rate was just 12%. The region has transformed through advancements in
technology and education.
3. Syndicate Bank: Syndicate Bank was founded with jewellery as collateral. It has
supported local industries since inception. The bank celebrates its centenary next
year denoting its historical significance.
4. CII Mangalore Integrate 2024: This event showcased Mangaluru’s potential as
an industrial hub. It attracted around 120 delegates from various sectors. The
theme focused on connecting new business opportunities.

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Belgium's Economic Challenges and Forecasts
Published On Nov 16, 2024

Belgium faces important economic challenges as it approaches 2025. The European

Commission has raised concerns about the country’s rising budget deficit and inflation.
Without policy changes, the deficit could reach 4.9% of GDP by 2025. Increased spending
on pensions and social benefits, along with higher interest payments on national debt,
contributes to this situation.
Current Economic Growth
Belgium’s economy is projected to grow by 1.1% in 2024. which is expected to continue at
1.2% in 2025 and 1.5% in 2026. While Belgium’s growth outpaces Germany and France, it
lags behind the Netherlands and Luxembourg. Economic stability remains a priority for
policymakers.
Inflation Rates and Consumer Prices
Inflation in Belgium is set to reach 4.4% in 2024, which is higher than the eurozone
average of 2.4%. Factors driving inflation include the withdrawal of energy support and
the monthly indexation of variable electricity and gas contracts. Forecasts predict inflation
will decrease to 2.9% in 2025 and 1.9% in 2026, aligning more closely with eurozone
averages.
Budget Deficit Projections
Belgium’s budget deficit is projected to rise from 4.6% of GDP in 2024 to 4.9% in 2025 and
5.3% in 2026. This increase is linked to ongoing negotiations within the Federal
Government. Rising costs related to pensions and social benefits are important
contributors to the deficit.
Belgium’s national debt is expected to exceed 105% of GDP next year. Increased interest

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payments due to this growing debt pose additional challenges. Policymakers must
address the need to refinance maturing debts while managing overall debt levels.
Geopolitical Risks and Economic Uncertainty
Geopolitical issues, such as the Russian invasion of Ukraine and conflicts in the Middle
East, present risks to the European economy. These events threaten European energy
supply security and could disrupt trade. New protectionist measures by EU trade partners
may further complicate Belgium’s economic landscape.
Balancing Growth and Debt Reduction
The European Commission emphasises the need for Belgium and other EU countries to
strike a balance between reducing debt and stimulating economic growth. Effective policy
measures are essential to navigate the challenges posed by rising deficits and inflation.
Belgium’s economic future remains uncertain amid rising inflation and budget deficits.
Policymakers must act decisively to ensure sustainable growth and financial stability. The
coming years will be critical for Belgium as it addresses these pressing economic issues.

Important Facts for Exams:

1. EU Trade Partners: EU trade partners include countries that engage in trade
agreements with EU nations. Protectionist measures from these partners can
disrupt global trade flows and economic stability.
2. Indexation: Indexation refers to adjusting payments according to inflation rates.
In Belgium it affects variable electricity and gas contracts. This contributes to
rising consumer prices and overall inflation rates.

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UK Plans Major Pension Fund Reforms
Published On Nov 16, 2024

The UK government aims to create substantial “megafunds” through an important

overhaul of the pension system. Finance Minister Rachel Reeves announced plans to
attract up to £80 billion ($102 billion) in new investments. This initiative addresses the
chronic under-investment of UK pension funds in local assets. It also responds to the
recent economic stagnation attributed to insufficient domestic investment.
Background of Pension Fund Under-investment
UK pension funds have historically under-invested in domestic projects, which has
contributed to lackluster economic growth. Many pension schemes lack the scale to
engage in large infrastructure projects. The government seeks to rectify this issue through
consolidation.
Proposed Consolidation of Pension Schemes
Reeves plans to consolidate approximately 60 defined contribution schemes and 86 Local
Government Pension Schemes. This consolidation aims to enhance cost efficiency. Larger
funds can pursue important investments in infrastructure like roads and railways. The
goal is to create funds capable of managing £25-50 billion or more.

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Expected Impact on Investment Capacity

According to government analysis, pension funds with £25-50 billion in assets can diversify
investments more effectively. Funds exceeding £50 billion can invest directly in large-scale
projects at reduced costs. This opens opportunities for substantial economic contributions
from pension investments.
Future Legislation and Oversight
The government plans to introduce a new Pension Schemes Bill next year. This legislation
will facilitate fund consolidation and empower managers to transfer savers between
schemes. The Financial Conduct Authority will authorise these megafunds. They will
undergo rigorous scrutiny to ensure they deliver value for money.
Comparison with Global Pension Models
The proposed megafunds are inspired by successful pension schemes in Canada and
Australia. These countries have higher volumes of infrastructure investments compared to
the UK. Reeves brought into light that British pension funds need to grow to achieve
competitive returns and support economic growth.
Public Sentiment and Concerns
Public opinion generally supports using pension savings for domestic development.
However, experts warn against excessive consolidation. Reducing the number of pension
schemes too drastically could limit innovation and competition. This might lead to poorer
outcomes for pensioners in the long term.
The UK government is committed to reforming its pension landscape. By creating
megafunds, it aims to stimulate economic growth and improve retirement savings. The
upcoming legislation will be crucial in shaping the future of pension investments in the
UK.

Important Facts for Exams:

1. Megafunds: Megafunds are large pension funds designed to enhance
investment capacity. They aim to consolidate smaller schemes. This initiative
seeks to drive economic growth and improve retirement savings.
2. Defined Contribution Schemes: Defined contribution schemes are retirement
plans where contributions are defined. They differ from defined benefit schemes.
These plans depend on investment performance for retirement income.
3. Pension Schemes Bill: The Pension Schemes Bill will facilitate pension fund
consolidation. It aims to empower fund managers. This legislation is expected to
enhance efficiency and investment opportunities.

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Arvinder Singh Sahney Becomes Indian Oil Chairman
Published On Nov 15, 2024

Arvinder Singh Sahney has been appointed as the Chairman of Indian Oil Corporation as
of November 13, 2024. His appointment follows the tenure of S. M. Vaidya. Previously, V.

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Satish Kumar held the position in an interim capacity. Sahney brings over thirty years of
experience in the refinery and petrochemical sectors.
Background and Experience
Sahney is a chemical engineer with a robust career in the oil industry. He has worked at
five of Indian Oil’s nine refineries. His expertise spans various operational and strategic
roles. He has been very important in the commissioning and optimization of key refinery
units. Notably, he played an important role in the establishment of the 15 MMTPA Paradip
refinery.
Leadership in Petrochemicals
Before his new role, Sahney led the petrochemical vertical at Indian Oil. He was
responsible for the conceptualization of numerous petrochemical projects. His leadership
has been instrumental in developing the upcoming mega petrochemical complex at
Paradip. This project aims to enhance India’s petrochemical capabilities.
Sustainable Initiatives
Sahney also chairs Terra Clean, a subsidiary of Indian Oil. This company focuses on
developing sustainable solutions in the energy sector. His commitment to sustainability
aligns with global trends towards greener energy practices.
International Engagement
In addition to his domestic roles, Sahney serves as a Director at IndOil Montney in Canada.
This position expands his influence in the international oil market. His international
experience adds a valuable perspective to his leadership at Indian Oil.
With his extensive background, Sahney is expected to steer Indian Oil towards innovation
and growth. His experience in refinery operations and petrochemical projects positions
him well to tackle future challenges. The focus on sustainable practices will likely shape
the company’s strategy under his leadership.

Important Facts for Exams:

1. Terra Clean: Terra Clean is a subsidiary of Indian Oil Corporation. It focuses on
sustainable solutions in the energy sector. The company promotes greener
energy practices globally.
2. MMTPA: MMTPA stands for Million Metric Tonnes Per Annum. It is a
measurement unit for production capacity. The Paradip refinery has a capacity of
15 MMTPA.
3. IndOil Montney: IndOil Montney is a Canadian subsidiary of Indian Oil
Corporation. It enhances Indian Oil’s international presence. The subsidiary
operates in the Montney natural gas play.

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SBI, HDFC Bank, ICICI Bank: RBI's 2024 List of Domestic Systemically Important
Banks (D-SIBs)
Published On Nov 15, 2024

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Recently, the Reserve Bank of India (RBI) has reaffirmed the status of State Bank of India
(SBI), HDFC Bank, and ICICI Bank as Domestic Systemically Important Banks (D-SIBs). This
classification remains unchanged from the previous year. The RBI continues to monitor
these banks closely due to their important role in the financial system.
D-SIB Classification and Requirements
The D-SIB framework was introduced to ensure financial stability. It requires banks to
maintain higher capital buffers. These buffers are determined by a bank’s Systemic
Importance Score (SIS). SBI, HDFC Bank, and ICICI Bank are categorized into different
buckets based on their SIS. Each bucket has specific capital requirements.
Capital Requirements for D-SIBs
For 2024, SBI must maintain an Additional Common Equity Tier 1 (CET1) requirement of
0.80% of its Risk Weighted Assets (RWAs). HDFC Bank’s requirement is set at 0.40%, while
ICICI Bank’s is 0.20%. These requirements ensure that these banks can absorb losses and
remain solvent during financial distress.
Changes Effective from April 2025
Starting April 1, 2025, the D-SIB surcharge will increase for SBI and HDFC Bank. SBI’s
surcharge will rise to 0.80%, and HDFC Bank’s will increase to 0.40%. Until then, the
existing surcharges of 0.60% for SBI and 0.20% for HDFC Bank apply. This phased
approach allows banks to adjust their capital strategies.
RBI Framework Update
The RBI issued its initial framework for D-SIBs on July 22, 2014, and updated it on
December 28, 2023. This update reflects ongoing changes in the banking sector and aims
to enhance the resilience of the financial system. The framework mandates that the RBI
publicly disclose D-SIBs annually.
Global Systemically Important Banks (G-SIBs)
Foreign banks with branch presence in India that are classified as Global Systemically
Important Banks (G-SIBs) must adhere to additional capital requirements. These
requirements are proportional to their RWAs in India. The additional CET1 buffer is
calculated based on the G-SIB’s home regulator’s requirements.
Historical Context of D-SIB Designation
SBI was first designated as a D-SIB in 2015, followed by ICICI Bank in 2016 and HDFC Bank
in 2017. This historical context marks the importance of these banks in the Indian financial
landscape. The RBI continues to assess the systemic importance of these institutions
based on evolving data and market conditions.
The RBI closely monitors compliance with D-SIB requirements. Banks are expected to
maintain adequate capital levels and report their financial status regularly. This
monitoring ensures that the banking system remains stable and capable of withstanding
economic shocks.

Important Facts for Exams:

1. D-SIB: Domestic Systemically Important Banks are crucial for financial stability.
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They must maintain higher capital buffers determined by their Systemic

Importance Scores to absorb potential losses.
2. CET1: Common Equity Tier 1 is a key measure of a bank’s financial strength. It
represents the core capital that banks must hold to ensure solvency during
financial distress.
3. SIS: Systemic Importance Score assesses a bank’s impact on the financial system.
Higher scores lead to stricter capital requirements to mitigate risks to economic
stability.
4. G-SIB: Global Systemically Important Banks must meet additional capital
requirements in India. These requirements are proportional to their Risk
Weighted Assets and reflect their global financial significance.

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43rd India International Trade Fair (IITF) 2024 Inaugurated
Published On Nov 15, 2024

The 43rd India International Trade Fair (IITF) commenced on November 14, 2024, at
Bharat Mandapam in New Delhi. Union Commerce & Industry Minister Piyush Goyal
inaugurated the event. The fair will continue until November 27, 2024. It aims to promote
India’s vision of self-reliance by 2047. The theme is Viksit Bharat @2047, aligning with
Prime Minister Modi’s aspirations for a prosperous India.
Fair Objectives
The trade fair focuses on showcasing India’s ambition for economic growth. It serves as a
platform for local businesses to connect with international markets. The fair aims to
enhance consumer choice by introducing global exhibitors. It is designed to facilitate
trade and investment opportunities.
Expansion of ITPO
Minister Goyal announced plans to upgrade the India Trade Promotion Organisation
(ITPO). The goal is to transform ITPO into a world-class agency. This transformation is
crucial for positioning India as a leading destination for MICE activities. Cities like
Bangalore, Mumbai, Chennai, Lucknow, Varanasi, and Noida will receive expanded MICE
facilities.
Digital Transactions Emphasis
The government is prioritising digital transactions at trade fairs. Goyal proposed setting
up kiosks for faster payment processing. This initiative aims to streamline transactions for
exhibitors and attendees. Revenue-sharing models with participating industries are also
under consideration.
Goyal brought into light the potential of virtual trade fairs. These events can showcase
products that do not require physical presence. Virtual fairs can broaden participation and
accessibility for global audiences. This approach aligns with modern trends in digital
engagement.

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Global Integration
The fair seeks to promote a shift from local to global trade. Goyal emphasised the
importance of connecting buyers and sellers internationally. The aim is to create a
comprehensive marketplace within India. This strategy is expected to enhance the
competitiveness of Indian businesses.
The IITF reflects India’s long-term vision for economic resilience. It aims to encourage
innovation and entrepreneurship. The event serves as an important step towards
achieving a self-reliant economy by 2047. The government’s commitment to trade
facilitation is evident through these initiatives.

Important Facts for Exams:

1. IITF – The India International Trade Fair is an annual event. It showcases India’s
trade potential. The 2024 edition runs from November 14 to November 27.
2. MICE – MICE stands for Meetings Incentives Conventions and Exhibitions. It is a
sector focused on business tourism. India aims to become a leading MICE
destination.
3. Viksit Bharat – Viksit Bharat translates to Developed India. It reflects India’s
vision for economic growth. The goal is to achieve self-reliance by the year 2047.
4. ITPO – The India Trade Promotion Organisation promotes trade. It is responsible
for organising the IITF. Plans are underway to upgrade ITPO into a world-class
agency.

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Euro Hits One-Year Low Amid Economic Concerns
Published On Nov 14, 2024

The euro has recently fallen to its lowest point in a year. This decline raises concerns about
its potential to reach parity with the US dollar. Market analysts are closely monitoring the
situation. Factors such as Donald Trump’s election victory and the prospect of increased
tariffs are influencing the euro’s performance.
Euro’s Current Status
Currently, the euro is valued at approximately $1.06. This represents a nearly 5% drop
from its highs in September. Economic forecasts suggest a weakening outlook for the
eurozone, contributing to this decline. The euro-dollar exchange rate remains the most
actively traded currency pair globally.
Potential for Parity
The possibility of the euro hitting the $1 mark is becoming a topic of discussion. Parity is
only about 6% away. Historical trends show the euro trading below this level in the early
2000s and during parts of 2022. Market sentiment could worsen if the euro falls below this
psychological barrier.
Impact on Businesses and Households
A weaker euro typically increases import costs. This situation can lead to rising prices for

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food, energy, and raw materials. However, inflation has decreased , reducing immediate
concern. A lower euro also benefits exporters by making their products cheaper abroad,
particularly aiding Germany’s economy.
Comparison with Other Currencies
The euro is not alone in its decline. Other major currencies have also suffered due to tariff
concerns. The Mexican peso and the Korean won have seen similar losses. Historically, the
euro has experienced fluctuations following important political events, such as Trump’s
previous election.
Long-Term Outlook for the Euro
Despite current challenges, some analysts maintain a cautiously optimistic view. While
parity is possible, it is not seen as inevitable. Potential interest rate cuts by the European
Central Bank (ECB) could support the euro’s value in the long run. The eurozone’s recent
economic growth may also provide a stabilising effect.
Implications for the European Central Bank
The ECB is better positioned than during past euro declines. Current inflation trends are
downward, which alleviates pressure to raise interest rates. The ECB monitors the euro’s
performance against a broader basket of currencies, indicating relative strength. The
impact of currency fluctuations on inflation is minimal, allowing for potential rate cuts
without important concerns.

Important Facts for Exams:

1. ECB: The European Central Bank manages monetary policy in the eurozone. It
focuses on price stability and economic growth. The ECB influences interest rates
and currency value through policy decisions.
2. Parity: Parity refers to the exchange rate where two currencies are equal. The
euro is approaching this psychological level against the US dollar. Historical
trends show the euro trading below parity previously.
3. Tariffs: Tariffs are taxes imposed on imported goods. They can affect currency
values and international trade. Increased tariffs may lead to economic
slowdowns and impact currency exchange rates .

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IBM Opens Gen-AI Centre in Kochi
Published On Nov 14, 2024

IBM has launched a Gen-AI Innovation Centre in Kochi. This facility aims to enhance the
city’s status as a hub for international IT firms. The centre will serve IBM’s global
customers and is expected to create important employment opportunities.
Key Features of the Centre
The Gen-AI Innovation Centre comprises three main components. First, it includes a
presentation facility for international clients. Second, there is a space for workshops and
consultations. Third, it offers resources to support students and startups. This structure is

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designed to encourage collaboration and innovation.

Employment Opportunities
The centre is projected to employ up to 5,000 individuals. Currently, it hosts 1,500
employees. This expansion reflects Kochi’s rapid growth as IBM’s fastest-growing campus
worldwide. The initiative aligns with the state government’s “Work from Kerala” policy,
promoting local employment.
Collaboration with Educational Institutions
Higher education institutions will partner with the Gen-AI Lab. They will have access to
IBM’s WatsonX platform for AI experiments. This collaboration aims to enhance learning
and innovation among students. It provides a practical environment to experiment with
product prototypes.
Benefits for Students and Startups
Students and startups can utilise the Gen-AI lab at no cost. They will have opportunities to
conduct experiments and refine their projects. This initiative supports the development of
new ideas and technologies in AI.
The establishment of the Gen-AI Centre is set to transform Kochi’s IT landscape. It
positions the city as a key player in the global technology arena. The centre’s resources
will attract international clients and encourage local talent.
Future Prospects
The Gen-AI Innovation Centre is expected to drive future growth. It will enhance Kochi’s
appeal to IT companies and professionals. Continuous collaboration between IBM and
educational institutions will further strengthen this ecosystem. This development puts
stress on the increasing importance of AI in the modern economy. Kochi is poised to
become an important contributor to this technological evolution.

Important Facts for Exams:

1. Gen-AI Lab – The Gen-AI Lab provides resources for students and startups. It
allows free experimentation with AI technologies. This initiative encourages
innovation and collaboration in Kochi.
2. WatsonX Platform – WatsonX is designed for high-quality customer service. It
enables AI experiments in educational institutions. The platform supports
learning and development in artificial intelligence.
3. Infopark – Infopark is a major IT park in Kochi. It hosts various technology
companies. The park aims to boost Kerala’s IT sector and create employment.
4. Work from Kerala – Work from Kerala is a state government policy. It promotes
local employment in the IT industry. This initiative leverages Kerala’s unique
advantages for businesses.

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Pakistan's Ongoing Relationship with the IMF
Published On Nov 13, 2024

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In September 2024, the International Monetary Fund (IMF) approved an important loan
for Pakistan. The loan, valued at US$7 billion, marks Pakistan’s second-largest borrowing
from the IMF. This financial assistance comes amid ongoing economic challenges faced by
the country.
IMF’s Role and Purpose
The IMF provides financial support to countries experiencing economic crises. Its loans
are not project-specific but aim to stabilize economies through policy reforms. The IMF
promotes sustainable growth for its member countries.
IMF loans require recipient countries to implement specific economic reforms. These
include expanding the tax base, managing inflation, reducing subsidies, and stabilizing
the currency. Compliance with these conditions is crucial for disbursement.
Temporary Relief Measure
IMF loans serve as temporary relief for balance-of-payments (BoP) crises. They help
countries manage immediate financial obligations and avoid defaults. However, these
loans are not long-term solutions for underlying economic issues.
Special Drawing Rights (SDR)
The IMF uses Special Drawing Rights (SDR) as an international reserve asset. The value of
the SDR is based on a basket of five major currencies. As of November 2024, one SDR
equals approximately US$1.32.
Pakistan joined the IMF in 1950. The country faced economic difficulties soon after,
leading to its first loan request in 1958. However, it was not until 1965 that Pakistan
successfully secured a loan.
Frequent Borrowing Patterns
Since its first successful loan, Pakistan has repeatedly sought IMF assistance. On average,
the country requests loans every 2.5 years. It ranks fourth among the IMF’s largest
debtors, with an outstanding balance of US$8.8 billion.
Pakistan has struggled to comply with IMF conditions. Of the loans sanctioned, only nine
out of 23 have been fully disbursed. This indicates a recurring issue with policy
implementation and political stability.
Extended Fund Facility (EFF) and Extended Credit Facility (ECF)
The EFF imposes strict conditions for macroeconomic reforms. It requires countries to
focus on revenue generation and market liberalisation. The ECF, aimed at low-income
countries, also demands adherence to stringent benchmarks.
Historical Context of IMF Interventions
Past IMF interventions have imposed important constraints on Pakistan. Structural
adjustments have included liberalising interest rates and managing budget deficits. These
measures reflect a shift from an emerging economy to a lower-income status.
Pakistan’s request for IMF assistance marks ongoing fiscal challenges. Political instability
and social issues often hinder compliance with IMF agreements. The need for urgent
economic reforms remains critical for the nation’s stability.

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Important Facts for Exams:

1. Special Drawing Rights (SDR) – SDR is an international reserve asset created by
the IMF. Its value is based on a basket of five major currencies. It serves to
supplement member countries’ official reserves.
2. Extended Fund Facility (EFF): The EFF is an IMF programme designed for
countries facing serious balance-of-payments issues. It imposes stringent
conditions for macroeconomic reforms to ensure economic stability.
3. Extended Credit Facility (ECF): The ECF is aimed at low-income countries
experiencing long-term balance-of-payments difficulties. It requires strict
adherence to structural benchmarks and policy adjustments to support
economic growth.

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Air India and Vistara Merger
Published On Nov 13, 2024

The merger of Air India and Vistara marks an important shift in the aviation landscape.
This strategic move aims for enhanced efficiency and profitability. The merger is expected
to save over ₹500 crore annually. It will also strengthen Air India’s position in both
domestic and international markets.
Financial Implications
The merger is projected to yield substantial cost savings. Annual savings of ₹500 crore will
stem from renegotiated contracts. These include agreements related to operations, fuel,
and catering. The combined entity aims for a total cost saving of ₹1,800 crore by FY27.
This financial discipline is crucial for achieving sustainable profitability.
Transformation Journey
Air India is currently in its Vihaan.AI transformation program. This initiative consists of
three phases – Taxi, Take-off, and Climb. The Climb phase focuses on integrating
operations with Vistara. This integration aims to enhance customer value and drive
profitability.
The merger allows for streamlined operations. Air India can reduce redundancies, which is
vital for efficiency. A unified entity can negotiate better rates for bulk procurement. This
capability enhances overall cost-efficiency in operations.
Market Positioning
The merged airline will be better equipped to face industry challenges. Fluctuating fuel
prices and competitive pressures are ongoing concerns. A larger footprint will enable the
airline to adapt and respond effectively.
Air India plans to retain the Vistara experience for customers. The airline will retrofit its
legacy aircraft to improve service quality. The upgrade of the narrowbody fleet is expected
to be completed by mid-2025.
Stakeholder Impact
Singapore Airlines, a stakeholder in Vistara, anticipates an important non-cash gain. This
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gain is estimated at SGD 1.1 billion ($832.45 million) post-merger. Following the merger,
Singapore Airlines will hold a 25.1 per cent share in the new entity.
Future Outlook
Both Air India and Vistara have struggled with profitability. However, the merger aims to
change this trend. The goal is to transition the balance sheet from losses to profits by
FY27. The focus will be on reinvesting in fleet expansion, customer service, and
technology. This merger represents a very important moment for Air India. It sets the
stage for a more competitive and efficient airline in the evolving aviation market.

Important Facts for Exams:

1. Vihaan.AI: Vihaan.AI is Air India’s transformation programme. It consists of
three phases. The final phase is called Climb. This phase focuses on integrating
operations with Vistara.
2. SGD: SGD stands for Singapore Dollar. It is the official currency of Singapore. The
currency is abbreviated as SGD in international markets. One SGD is
approximately 0.75 USD.
3. Road to Profitability: Road to Profitability is Air India’s strategic initiative. It aims
to achieve profitability by FY27. The merger with Vistara is a key component of
this strategy.
4. Narrowbody Fleet: The narrowbody fleet refers to aircraft with a single aisle.
These planes are typically used for short-haul flights. Air India plans to retrofit its
narrowbody fleet by mid-2025.

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Amul Expands to European Market
Published On Nov 13, 2024

Amul is set to enter the European market by the end of November 2024. This follows its
successful launch in the United States earlier this year. The Gujarat Cooperative Milk
Marketing Federation (GCMMF) operates under the Amul brand. The Managing Director,
Jayen S Mehta, announced this expansion during a ceremony at the Indian Institute of
Foreign Trade.
Initial Launch in Spain
Amul will first introduce its products in Spain. The company plans to assess market
response before expanding to other European nations. This strategy allows Amul to tailor
its offerings to local preferences.
Product Range
The initial product line will include milk and various fresh dairy items. Amul aims to cater
to both the Indian diaspora and European consumers. The brand is known for its quality
and diverse dairy products, which are expected to resonate well in the new market.
Challenges in International Trade
The Indian dairy sector faces non-tariff barriers in many foreign markets. These barriers

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can hinder export growth. Mehta brought into light the need for policy changes to
facilitate smoother trade. Addressing these challenges could boost Amul’s international
sales.
Economic Importance of Dairy Farming
Dairy farming is crucial for the livelihoods of over 100 million families in India. Most of
these producers are small and marginal farmers. Amul’s growth in international markets
can provide additional income opportunities for these farmers.
Import Duties on Dairy Products
India imposes a 30% import duty on dairy goods. This duty impacts the competitiveness of
foreign dairy products in the Indian market. Amul’s expansion may also influence
discussions on trade policies related to dairy imports.
Financial Standing of Amul
As of now, Amul boasts a turnover of ₹80,000 crore. It ranks among the strongest dairy
and food brands globally. The cooperative is owned by approximately 3.6 million farmers,
showcasing its extensive grassroots support.
In March 2024, Amul launched four milk variants in the US. This was aimed at serving the
Indian and Asian communities. The US launch has been a stepping stone for Amul’s global
strategy.
Future Prospects
Amul’s entry into Europe marks an important milestone in its global expansion. The
company is poised to leverage its strong brand reputation. With strategic planning and
market adaptation, Amul aims to become a leading player in the European dairy market.

Important Facts for Exams:

1. GCMMF: The Gujarat Cooperative Milk Marketing Federation is a cooperative
body. It operates under the Amul brand. It represents around 3.6 million farmers
in India.
2. IIFT: The Indian Institute of Foreign Trade is a premier institution. It offers
management education in international business. It plays an important role in
shaping India’s trade policies.
3. Non-tariff barriers: Non-tariff barriers are trade restrictions. They do not
involve tariffs. They include quotas and regulations that hinder trade between
countries.
4. Amul: Amul is a dairy cooperative based in India. It was founded in 1946. It is
renowned for its high-quality dairy products and innovative marketing strategies.

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India’s Renewable Energy Growth and Investment
Published On Nov 12, 2024

India’s renewable energy sector has rapidly evolved over the past decade. The country
recently achieved an important milestone of 200 GW in renewable energy capacity. This

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includes nearly 90 GW from solar power alone. The government has set an ambitious
target of reaching 500 GW by 2030. This requires adding approximately 50 GW annually.
Current Capacity and Future Goals
India’s renewable energy capacity has grown exponentially. In FY24, India added 18 GW of
renewable energy. Projections suggest an increase to 30-35 GW in FY25. Solar power leads
this growth, contributing to the overall capacity.
Global Context and Competition
India’s solar market is relatively small compared to global leaders. In 2023, China installed
253 GW of solar capacity alone. The USA added 32 GW during the same period. India
accounted for only 3% of global capacity additions, ranking fifth. Despite this, with
increased focus, India aims to secure the second position after China.
Global Solar Market Expansion
The global installed solar PV capacity is expected to reach 11,000 GW by 2030. This
represents an investment of approximately US$4-5 trillion. Recently, investments in solar
PV reached US$500 billion. Annual investments may approach US$1 trillion by 2030.
Investment Opportunities in India
India’s annual addition of 50 GW presents an important opportunity for global investors.
Estimated investments in this sector stand at US$17-18 billion per year. This figure only
accounts for generation facilities. Additional investments will be necessary for
manufacturing solar PV modules and cells.
The majority of investments in India’s renewable sector come from debt. Domestic banks
and financial institutions contribute 70-75% of this funding. Private equity plays important
role in equity investments. Cumulative foreign direct investment (FDI) in renewables
exceeded US$17 billion by FY24.
Role of Global Investors
Global investors increasingly allocate capital to infrastructure, including renewables.
Public pension funds raised their infrastructure allocation from 4.4% in 2020 to 6.57% in
2024. The top 75 global funds now have nearly US$725 billion invested in infrastructure.
Alignment with Global Goals
India’s green energy initiatives align well with global sustainability targets. This alignment
has attracted global investor interest. Access to capital for the Indian solar PV industry
appears secure. The sector is poised for robust growth in the coming years.

Important Facts for Exams:

1. GW – Gigawatt is a unit of power equal to one billion watts. It is commonly used
to measure the output of power plants and the capacity of electrical grids.
2. FDI – Foreign Direct Investment refers to investments made by a company or
individual in one country in business interests in another country. It plays
important role in economic development.
3. PV – Photovoltaic technology converts sunlight directly into electricity. It is a key
component of solar energy systems and has seen important advancements in
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efficiency and affordability.

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Gujarat's Semiconductor Policy Drives Economic Growth
Published On Nov 09, 2024

The Gujarat government has launched the Gujarat Semiconductor Policy 2022-2027. This
initiative aligns with Prime Minister Narendra Modi’s vision for a developed India by 2047.
It aims to enhance semiconductor self-reliance in the state. Chief Minister Bhupendra
Patel leads this ambitious policy. Recent milestones include important investments in
semiconductor projects.
Key Features of the Gujarat Semiconductor Policy
The policy focuses on attracting investments in semiconductor manufacturing. It offers
various incentives to semiconductor businesses. These include a 40% subsidy on capital
expenditure. Companies can also benefit from a 100% refund on stamp duty and
registration fees. Additionally, there is a Rs 2 per unit subsidy on electricity. Water usage is
subsidized at Rs 12 per cubic meter. The policy promotes land acquisition subsidies of up
to 75% for units in Dholera.
Major Investments and Projects
Several high-profile projects are underway in Gujarat. Micron is establishing an advanced
semiconductor assembly plant in Sanand. This project is valued at over Rs 22,500 crore. In
Dholera, Tata Electronics and Taiwan’s Powerchip are setting up India’s first AI-enabled
semiconductor fabrication facility. This facility will involve an investment exceeding Rs
91,000 crore. CG Power and Renesas are also developing an Outsourced Semiconductor
Assembly and Test facility in Sanand, with a project cost of more than Rs 7,500 crore.
Kaynes Semicon will produce around 6 million chips daily, investing Rs 3,300 crore.
Economic Impact and Job Creation
These projects are expected to generate thousands of high-skilled jobs. The Gujarat
government anticipates the creation of approximately 53,000 jobs through these
initiatives. The cumulative investment from major companies has reached Rs 1.24 lakh
crore. The policy complements the central government’s ‘India Semiconductor Mission’
launched in 2021.
Strategic Importance of Dholera and Semicon City
Dholera is being developed as India’s first Greenfield Smart City. It is envisioned as
‘Semicon City,’ a strategic hub for semiconductor investments. This region aims to
encourage industry growth and attract further investments. The initiatives in Dholera are
crucial for establishing Gujarat as a semiconductor manufacturing leader.
Future of India’s Semiconductor Market
India’s semiconductor market is on a growth trajectory. Valued at $15 billion in 2020, it is
projected to exceed $63 billion by 2026. The Gujarat Semiconductor Policy plays a vital role
in this expansion. It supports the central government’s efforts to boost domestic
semiconductor production. The collaborative approach between state and central
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initiatives strengthens India’s position in the global semiconductor landscape.

Important Facts for Exams:

1. Dholera: Dholera is being developed as India’s first Greenfield Smart City. It aims
to attract semiconductor investments. This region is envisioned as a strategic
hub for industry growth.
2. Gujarat State Electronics Mission: The Gujarat State Electronics Mission
supports the semiconductor policy. It aims to enhance self-reliance in
semiconductor manufacturing. This mission facilitates important investments in
the electronics sector.

[no_toc]
India and ADB Sign $200 Million Loan for Uttarakhand
Published On Nov 07, 2024

The Government of India and the Asian Development Bank (ADB) signed an important
$200 million loan. This funding aims to improve urban services in Uttarakhand. The
agreement was signed by key officials from both organizations. This project is part of a
broader urban development agenda in India.
Project Overview
The project is named the Uttarakhand Livability Improvement Project. Its goals include
enhancing water supply, sanitation, urban mobility, and overall urban services in the state.
It focuses on improving the livability and sustainability of cities in Uttarakhand.
Key Objectives
1. Urban Infrastructure: The project aims to create infrastructure that can withstand
climate and environmental risks. This includes preparing for floods and landslides.
2. Capacity Building: It will develop the capabilities of state agencies. Training will
focus on project management, disaster-resilient planning, and revenue generation.
3. Gender Mainstreaming: The project includes initiatives to empower women. This
involves training for jobs in urban transport and water management.
The project targets several cities in Uttarakhand Haldwani, Champawat, Kichha, Kotdwar,
and Vikasnagar.
Improvements in Haldwani
In Haldwani, the project plans to:
Develop 16 km of climate-resilient roads.
Establish an intelligent traffic management system.
Introduce compressed natural gas buses and pilot electric buses.
Construct 36 km of stormwater and roadside drains for better flood management.
Implement an early warning system for disasters.
Build a green-certified administrative complex and bus terminal.
Water Supply Enhancements
The project aims to improve water supply in four cities Champawat, Kichha, Kotdwar,

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and Vikasnagar. Key initiatives include:

Constructing 1,024 km of climate-resilient pipelines.
Installing smart water meters.
Building 26 tubewells and new reservoirs.
Developing a 3.5 million-litre-per-day water treatment plant.
Sanitation Improvements
In Vikasnagar, sanitation will be enhanced by
Establishing sewage treatment facilities.
Benefiting around 2,000 households.
Women Empowerment Initiatives
The project aims to support women through:
Livelihood skills training for driving buses.
Training for bus ticketing and electric charging station operations.
Capacity building for women in managing water supply and sanitation services.
The European Investment Bank is co-financing the project with $191 million. This financial
support will aid in achieving the project’s objectives effectively.[no_toc]
EPFO Sees 18.53 Lakh New Members in August 2024
Published On Oct 21, 2024

The Employees’ Provident Fund Organisation (EPFO) reported an important growth in its
subscriber base. In August 2024 alone, there was a net addition of 18.53 lakh members.
This reflects a 9.07% increase compared to August 2023. The Union Labour Ministry
attributes this growth to improved employment opportunities and increased awareness of
employee benefits.
Subscriber Growth Overview
The EPFO’s payroll data indicates a positive trend in new memberships. In August 2024,
9.30 lakh new members joined, marking a 0.48% rise from the previous year. The Ministry
brought into light that the surge is linked to outreach programmes and a growing
understanding of the benefits provided by EPFO.
Demographics of New Members
A notable aspect of the new memberships is the age distribution. Workers aged 18 to 25
years account for 59.26% of the new members. This trend suggests that the majority of
individuals entering the organised workforce are young, particularly first-time job seekers.
The net addition of members in this age group for August 2024 was 8.06 lakh.
Re-joining Members
In addition to new memberships, approximately 13.54 lakh members exited and then re-
joined EPFO in August 2024. This represents a year-over-year increase of 14.03%
compared to August 2023. Many of these individuals switched jobs and opted to transfer
their EPF accumulations rather than settle their accounts. This choice reflects a desire to
maintain long-term financial security and social protection.

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Gender Representation
Gender diversity within the EPFO membership is also noteworthy. Of the new members,
around 2.53 lakh were women, contributing to a net female member addition of
approximately 3.79 lakh in August. This increase signifies a shift towards a more inclusive
workforce, denoting the growing participation of women in the organised sector.
Regional Contributions
Maharashtra stands out as the leading state in terms of net member additions,
contributing 20.59% of the total in August. Other states and Union Territories, such as
Karnataka, Tamil Nadu, Haryana, Delhi, Gujarat, Telangana, and Uttar Pradesh, also
played roles, each adding over 5% of the total net members.
Implications of Growth
The growth in EPFO memberships marks a robust job market and a shift in workforce
demographics. Increased enrolment among youth and women indicates a positive trend
towards inclusivity. The rise in re-joining members suggests a growing awareness of the
benefits of maintaining EPF accounts, contributing to long-term financial stability.
The recent data from the EPFO reflects both a thriving job market and a commitment to
enhancing social security for workers across India. The trends observed in membership
growth, demographics, and regional contributions provide valuable vital information
about the evolving landscape of employment and employee benefits in the
country.[no_toc]
WHO Receives $700 Million Pledges for 2025-2028 Budget
Published On Oct 15, 2024

During an event in Berlin, the World Health Organization (WHO) announced it has received
$700 million in new funding pledges for its 2025-2028 budget. This is in addition to the
$300 million already promised by both the European Union and the African Union.
Why is this Funding Important?
WHO Director-General Tedros Adhanom Ghebreyesus explained that these investments
are crucial because strong health systems support not only public health but also the
overall stability of societies and economies. The COVID-19 pandemic showed that health
problems can affect much more than just healthcare systems, they can disrupt economies
and everyday life around the world.
Who are the Major Donors?
Germany has pledged at least 360 million euros (about $392 million), making it one of the
largest donors, along with the United States. The WHO is hoping that more countries will
step up and help spread the responsibility for funding its work more fairly.
Changes to the WHO’s Funding Model
In the past, WHO relied too much on a small number of big donors. Two years ago, the
organization agreed to change its funding model to fix this issue. By the 2030-2031
budget cycle, WHO aims to have 50% of its budget come from mandatory fees paid by its
member countries. Right now, only 16% comes from these obligatory fees, and the rest

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comes from donations.

Calls for More Support
German Chancellor Olaf Scholz stressed that more countries need to get involved in
supporting WHO. He said that even small contributions matter and help ensure the long-
term success of global health programs.
About the World Health Organization
The WHO was founded in 1948 in Geneva and has 194 member countries, making it one of
the largest international organizations. Its emblem features the rod of Asclepius, which
symbolizes healing. The WHO leads global efforts in health and responds to health crises.
Some of its major initiatives include launching the Global Vaccine Action Plan in 2013 and
creating the Framework Convention on Tobacco Control, a key treaty to reduce tobacco
use. The WHO declared COVID-19 a pandemic on March 11, 2020 and also focuses on
mental health and nutrition around the world.[no_toc]
World Bank Establishes Fund to Support Ukraine's Recovery
Published On Oct 11, 2024

The World Bank has created a special Financial Intermediary Fund (FIF) to help Ukraine as
it continues to face challenges from the ongoing war with Russia. Countries like the United
States, Canada, and Japan are expected to contribute money to this fund to assist with
both military and humanitarian needs.
Establishment of the Fund
The World Bank’s executive board approved this fund as a critical way to provide financial
support to Ukraine. This move aligns with the G7’s pledge to contribute up to $50 billion to
help Ukraine by the end of the year. Russia was the only country to disagree with this
decision during the vote.
How the Funding Will Work
While the contributions from the US, Canada, and Japan are still being finalized, the fund
will also include money earned from the frozen Russian assets held during the war. The
goal of this fund is to strengthen Ukraine’s economy during these difficult times.
European Union’s Involvement
The European Union (EU) has committed to providing about €35 billion to support the G7’s
funding efforts. Additionally, immobilised Russian central bank assets will be used to
further assist Ukraine’s financial needs.
Impact on Ukraine’s Economy
Experts say that these combined financial contributions will help reduce the financial
strain on Ukraine’s budget. The costs related to the war in 2023 alone are estimated to be
between $80 billion and $90 billion, making this funding extremely urgent.
International Diplomacy Efforts
The creation of this fund took place during important discussions between US President
Joe Biden and German Chancellor Olaf Scholz about Ukraine. These conversations show
how countries are working together diplomatically to support Ukraine in its time of need.

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World Bank’s Role and Experience

Ajay Banga, the President of the World Bank, has said that the institution is prepared to
manage this fund efficiently. The World Bank has experience with handling other non-
military donor funds, making it well-suited for this task.
Global Contributions
The new fund is designed to attract contributions from countries outside of Europe as
well. By doing so, the World Bank hopes to encourage a global effort to provide the
resources necessary for helping Ukraine during this crisis.
About the World Bank
The World Bank was founded in 1944 to help rebuild after World War II. It is made up of
five institutions, the most important being the International Bank for Reconstruction and
Development (IBRD) and the International Development Association (IDA). Its
headquarters are in Washington, D.C., and it focuses on reducing poverty and promoting
sustainable development around the world. The World Bank provides loans and grants to
over 100 countries, supporting projects in education, healthcare, climate initiatives, and
gender equality. It gets its funding from contributions from member countries and by
issuing bonds.[no_toc]
Southern States Lead in GDP Contribution
Published On Sep 19, 2024

A recent report by the Economic Advisory Council to the Prime Minister (EAC-PM) has
highlighted large differences in how different Indian states are doing economically. The
report shows that some states, especially in the south, are growing quickly, while others,
like West Bengal, are seeing a decline in their economic performance.
Southern States’ Economic Growth
After economic reforms in the early 1990s, southern states such as Karnataka, Andhra
Pradesh, Telangana, Kerala, and Tamil Nadu became major contributors to India’s overall
economic output. In 1991, these states had below-average incomes, but by 2024, they
contributed 30% of India’s GDP. Key drivers of this growth include Karnataka’s booming
tech industry and Tamil Nadu’s industrial development, with Telangana also growing
quickly since it became a separate state in 2014.
West Bengal’s Economic Decline
In contrast, West Bengal, which was once a leading state, has seen a major decline. In the
early 1960s, the state contributed 10.5% to India’s GDP, but by now, that has dropped to
5.6%. Its per capita income (the average income per person) has also fallen significantly
compared to the national average, going from 127.5% of the national average to just
83.7%. This is surprising given the state’s strong economy in the past.
Punjab vs. Haryana: A Comparison
Punjab, which benefitted from the Green Revolution (a period of agricultural
advancements), has seen its economic growth slow down since 1991. Its per capita income
dropped from 169% of the national average to just 106%. On the other hand, Haryana, a

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neighboring state, has done much better, with its income rising to 176.8% of the national
average. This shows that Haryana’s economic strategies have been more successful, while
Punjab is struggling to maintain its earlier success.
Maharashtra’s Contribution
Maharashtra, India’s most important economic state, still contributes the most to the
country’s GDP, but its share has decreased from over 15% to 13.3%. Although its per
capita income is now 150.7% of the national average, it has dropped out of the top five
states in terms of income per person. This suggests the state may need to adjust its
economic policies to regain its position.
Challenges for the Poorest States
The report also highlights the difficulties faced by poorer states like Uttar Pradesh and
Bihar. Uttar Pradesh’s contribution to the economy has decreased from 14% in the 1960s
to 9.5% today. Bihar contributes only 4.3% to the national economy and continues to fall
behind, while Odisha has shown some improvement. These states’ struggles reflect the
broader impact of economic reforms and state-specific policies.
The differences in how well Indian states are doing show that some have benefitted more
from economic reforms than others. While southern states have made the most of these
changes, states like West Bengal remain a puzzle, with their economies declining despite
having certain advantages.[no_toc]
54th GST Council Meeting
Published On Sep 11, 2024

The 54th Goods and Services Tax (GST) Council meeting took place in New Delhi, led by
Finance Minister Nirmala Sitharaman. The council focused on adjusting tax rates for
essential items, including health insurance, cancer drugs, and snacks.
Major Decisions Made
Group of Ministers (GoM): A special group has been created to review GST rates on
health insurance, cancer medicines, and savoury snacks (known as namkeens).
GST Cut on Cancer Drugs: The council proposed reducing the GST from 12% to 5% on
specific cancer treatments. This includes expensive drugs like Trastuzumab Deruxtecan,
Osimertinib, and Durvalumab.
Impact on Cancer Treatment
The reduction in GST is expected to lower the cost of cancer treatments, which can be very
high. India has seen a rise in cancer cases, and this move aims to help reduce the financial
stress on patients. Below are some of the current prices of key cancer drugs:
Trastuzumab Deruxtecan: ₹22,300 per vial
Osimertinib: ₹204,000 for 10 tablets
Durvalumab: ₹157,000 per vial
Potential Reductions on Other Goods
Savoury Snacks (Namkeens): The council is considering reducing GST on these snacks
from 18% to 12%, with non-fried variants possibly taxed at 5%.

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Research Services: Services provided by government bodies, universities, and colleges

for research could be exempt from GST.
Increases in GST for Certain Items
Car and Motorcycle Seats: The GST on these items may increase from 18% to 28%.
Helicopter Charters: GST for helicopter charters will stay at 18%, but passenger transport
via helicopters will continue to be taxed at 5%.
Changes in Taxpayer Responsibilities
Reverse Charge Mechanism: Updates have been proposed for how taxes are applied on
commercial property rentals and metal scrap transactions. In certain cases, the buyer will
be responsible for paying the tax.
Interest Waiver: Taxpayers who have pending tax demands from previous years may be
eligible for a waiver if they pay by March 31, 2025.
Future Plans
GoM Report on Insurance: The GoM will submit its findings on life and health insurance
GST rates by October 2024.
New Invoice System: A new Invoice Management System (IMS) will be introduced to
simplify invoicing and reduce errors in input tax credits. A pilot project for B2C (business-
to-consumer) e-invoicing will also be launched to improve retail transaction transparency.
This meeting reflects important changes in India’s GST policy. By lowering taxes on key
cancer drugs and other essentials, the council aims to ease the financial burden on
consumers. However, certain goods and services like car seats may see higher taxes,
balancing out the tax reliefs in other areas.[no_toc]
India's Forex Reserves Hit Record High of USD 683.987 Billion
Published On Sep 07, 2024

India’s foreign exchange reserves reached a new record of USD 683.987 billion. This
increased by USD 2.299 billion in just one week, continuing an upward trend from the
earlier high of USD 681.688 billion.
Growth Trend in 2024
In 2024, India’s reserves have grown by more than USD 60 billion, showing impressive
progress, especially compared to a decline of USD 71 billion in 2022. In 2023 alone, the
reserves increased by about USD 58 billion, highlighting a positive shift in the country’s
economic position.
Components of Forex Reserves
India’s foreign exchange reserves consist of various assets. The largest portion is foreign
currency assets (FCA), which have now reached USD 599.037 billion after growing by USD
1.485 billion. In addition to this, gold reserves have also seen an increase, rising by USD
862 million to a total of USD 61.859 billion.
Importance of Forex Reserves
Foreign exchange reserves play a critical role in protecting the domestic economy from
global financial shocks. They act as a financial cushion and are currently sufficient to cover

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around one year of India’s projected imports. This enhances financial stability and
provides security during economic uncertainties.
Role of the Reserve Bank of India (RBI)
The Reserve Bank of India (RBI) is responsible for managing these reserves. It intervenes
in the foreign exchange market when needed to stabilize the currency and control
liquidity. For example, if the market becomes too volatile, the RBI might sell dollars to
maintain stability, without targeting a specific exchange rate.
What are Foreign Exchange Reserves?
Foreign exchange reserves are the assets a country’s central bank holds in foreign
currencies. These reserves typically include foreign banknotes, government bonds, and
treasury bills. Countries like China, Japan, and Switzerland hold the largest reserves
globally. Reserves help stabilize a country’s currency, manage exchange rates, and settle
international debts. Many countries diversify their reserves by holding gold or even
cryptocurrencies. The International Monetary Fund (IMF) monitors these reserves, which
are vital for global trade and investment.[no_toc]
Berkshire Hathaway First Non-Tech Company to Hit $1 Trillion
Published On Aug 30, 2024

Berkshire Hathaway, led by Warren Buffett, made history by becoming the first non-
technology company to reach a market value of $1 trillion, on August 28. This
achievement came after a key decision to sell nearly half of its shares in Apple, which
helped the company build up a huge cash reserve of $280 billion.
Career Beginnings
Buffett started his career as an investment analyst, first working at his father’s firm and
later at Graham-Newman Corp., where he further honed his investment skills. By the age
of 30, he had already become a millionaire, showcasing his talent for making smart
investment decisions. In 1965, he co-founded Berkshire Hathaway with Charlie Munger,
who would become a key partner in his investment journey.
Value Investing Philosophy
Buffett is a strong believer in value investing, a strategy he learned from his mentor,
Benjamin Graham. This approach involves finding undervalued stocks, meaning they are
priced lower than their true worth. Value investors like Buffett look for opportunities
where the market has overlooked the potential of a company, aiming to buy these stocks
and hold onto them for long-term gains.
Diversification Strategies
Berkshire Hathaway originally started as a textile manufacturing company, but Buffett
soon realized that this industry had limited growth potential. He decided to diversify the
company’s investments by buying businesses that were temporarily struggling but had
strong foundations. Some of these businesses include well-known names like GEICO,
Coca-Cola, and Duracell.

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Investment Principles and Approach

Buffett’s approach to investing is disciplined and straightforward. He categorizes
investment opportunities into three groups: “yes,” “no,” and “too tough to understand.”
For a long time, he stayed away from technology stocks, believing they were difficult to
predict. However, he later changed his view when he saw the strong market position of
companies like Apple, which he now considers to have a strong competitive advantage, or
a “moat.” Warren Buffett’s success is built on a combination of value investing, smart
diversification, and a long-term vision. These principles have helped make Berkshire
Hathaway one of the most valuable companies in the world.
About Berkshire Hathaway
Founded in 1839, Berkshire Hathaway began as a textile manufacturing company. Warren
Buffett took control of the company in 1965 and has since transformed it into a massive
conglomerate. Headquartered in Omaha, Nebraska, Berkshire Hathaway owns companies
like GEICO and Duracell. The company is known for its decentralized management style,
allowing each subsidiary to operate independently. Berkshire’s annual shareholder
meetings are famous, drawing thousands of attendees and resembling a festival. The
company focuses on long-term investments and intrinsic value, with its “A” shares often
valued at over $500,000 each. Additionally, Berkshire Hathaway is recognized for its
strong commitment to philanthropy.[no_toc]
RBI Announces Future Launch of Unified Lending Interface (ULI)
Published On Aug 27, 2024

The Unified Lending Interface (ULI) is a new technology platform that the Reserve Bank of
India (RBI) plans to introduce across the country. Its main purpose is to make it easier and
faster for people, especially those in rural areas, to get loans. ULI is designed to improve
the lending process by lowering costs and speeding up how quickly loans are given out.
Why is ULI Needed?
India has been rapidly growing in terms of digital technology, but when it comes to loans,
the information needed to assess a person’s creditworthiness (whether they can pay back
a loan) is often scattered across different systems. These systems belong to various
government bodies and financial institutions. Because this information is not in one place,
it makes the process of getting a loan slow and difficult. ULI is being created to solve this
problem by bringing all this information together, making lending faster and smoother.
Key Features of ULI
Easy Information Sharing: ULI will allow for the smooth, consent-based sharing of digital
information from various sources, like land records, making it easier to access needed
details.
Standardized APIs: The platform will use common software tools (APIs) that allow
different systems to work together easily, helping banks and lenders quickly access the
information they need.
Less Paperwork: By using digital data, ULI will reduce the amount of paperwork

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borrowers have to deal with, making it faster and simpler to get loans.
Expected Impact of ULI
ULI is expected to meet the high demand for credit, especially in sectors like agriculture
and small businesses (MSMEs). It is seen as an important step in improving India’s digital
infrastructure, similar to the success of initiatives like JAM (Jan Dhan, Aadhar, Mobile) and
UPI.
How UPI Paved the Way
The Unified Payments Interface (UPI), launched in 2016, has completely changed how
digital payments are made in India. It allows people to make real-time transactions
through a single mobile app that connects with multiple banks. UPI has been very
successful and has drawn global attention for its efficiency, playing a big role in increasing
digital payments in India. Just as UPI transformed digital payments, ULI is set to do the
same for the lending process. It will provide a strong framework for delivering loans,
empowering borrowers, and helping India’s economy grow.[no_toc]
Jackson Hole Symposium 2024
Published On Aug 23, 2024

The Jackson Hole Economic Policy Symposium is a yearly event that gathers important
people like central bankers, economists, and policymakers from around the world. It is
organized by the Federal Reserve Bank of Kansas City. Since it began in 1978, this event
has become a key meeting place where big ideas about the global economy and money
policies are discussed. People like Ben Bernanke, a former U.S. Federal Reserve Chair, and
Mario Draghi, the former President of the European Central Bank, have spoken at this
event, making it very influential.
Why the 2024 Symposium is Important
The 2024 symposium, happening from August 22-24, is especially important because it
could give us clues about what might happen with interest rates in the future. Jerome
Powell, the current Chair of the Federal Reserve, is expected to give a speech that might
include hints about whether the Federal Reserve will cut interest rates to help reduce
unemployment. Investors are paying close attention because such decisions can greatly
affect financial markets around the world.
How the Symposium Impacts Global Markets
What is said at the Jackson Hole Symposium can have a big impact on global financial
markets. If the discussions suggest that interest rates will go up (a “hawkish” stance), this
could lead to a drop in stock markets. But if the talks hint that interest rates might go
down (a “dovish” tone), it could boost the markets. This year, many are looking forward to
seeing if there will be any signs of interest rate cuts by the Federal Reserve, as these have
been crucial in past market recoveries.
What Happened in 2023
Last year’s symposium in 2023 focused on “Structural Shifts in the Global Economy.”
Influential speakers like Jerome Powell and Christine Lagarde, President of the European

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Central Bank, talked about important issues like how monetary policies (the way central
banks manage money supply and interest rates) need to adapt to new economic
challenges. Their insights had a real impact on how central banks around the world set
their strategies over the past year.
What to Expect in 2024
For its 47th year, the 2024 symposium will explore “Reassessing the Effectiveness and
Transmission of Monetary Policy.” This means they’ll be discussing how well past policies
have worked, especially those put in place during the pandemic and periods of high
inflation. The goal is to learn from these experiences to better understand how to keep
economies strong and growing in the future.
The Jackson Hole Economic Policy Symposium is more than just a meeting—it’s a major
event that shapes how the global economy is managed. What’s discussed there can set
the stage for economic decisions that affect everyone, from big investors to everyday
people. That’s why it’s watched so closely by those who care about the economy.[no_toc]
CCI Raises Concerns Over $8.5 Billion Reliance-Disney Merger
Published On Aug 22, 2024

The $8.5 billion merger between Reliance and Disney is under the spotlight as India’s
antitrust body, the Competition Commission of India (CCI), examines its impact on
competition in the media sector.
Market Dominance and Competition
This merger will create the largest entertainment company in India, bringing together 120
TV channels and two streaming services. The CCI is worried that this might reduce
competition, as it could limit the number of significant players in the market, potentially
making it harder for smaller companies to compete.
Impact on Advertising Rates
One major concern is how this merger could affect advertising costs. With the new
company controlling about 40% of the TV and streaming ad market, there is a fear that
they could raise ad prices, especially during popular events like cricket matches, where
advertising space is highly sought after.
Cricket Broadcasting Rights
The merger will also give the company control over valuable cricket broadcasting rights,
including those for the Indian Premier League (IPL). The CCI is concerned that holding
these rights could give the company too much power, allowing it to increase advertising
costs and limit consumer choices.
Previous Concessions and Complications
Reliance and Disney have suggested selling off fewer than 10 TV channels to ease these
concerns. However, they are reluctant to sell their cricket broadcasting rights due to
existing contracts. This resistance adds complexity to the approval process and might
cause delays. The CCI’s scrutiny is similar to what happened in a previous case involving a
proposed merger between Zee and Sony in 2022. Despite offering solutions to ease

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competition concerns, that merger ultimately failed to go through. The CCI has asked
Reliance and Disney to respond within 30 days, stressing the importance of addressing
these competition concerns to move forward with the merger.[no_toc]
What is Dynamic Reference Rate?
Published On Aug 14, 2024

India and Russia are working on introducing a “dynamic reference rate” for their
currencies, the Indian Rupee (INR) and the Russian Rouble (RUB), to make financial
transactions between the two countries easier and to reduce the impact of U.S. sanctions
on Russia. Despite these efforts, India’s Reserve Bank Governor, Shaktikanta Das, has
clarified that there are no plans to completely stop using the U.S. dollar, which remains
the dominant currency in global trade.
Current Financial Transaction Challenges
Currently, converting Indian Rupees to Russian Roubles is a complicated process. It
usually involves first converting INR to U.S. dollars (USD) and then from USD to RUB. This
process is made even more complex by U.S. sanctions, which limit Russian banks’ access
to international financial systems, particularly for large transactions. Additionally, because
India imports more from Russia than it exports, Russian banks end up holding large
amounts of Indian Rupees, which complicates financial dealings further.
Proposed Solutions
To simplify this, India and Russia are considering setting up a direct exchange rate
between the INR and RUB. This rate would be adjusted according to the market by both
the Reserve Bank of India and the Bank of Russia. This plan is similar to a system India has
with the UAE, where local currency settlements are used for transactions. Additionally,
there is potential for Russia to invest its funds in Indian financial markets, which could
strengthen economic ties between the two countries.
Continuation of US Sanctions
However, U.S. sanctions continue to restrict Russian banks’ access to global financial
services, forcing them to rely on smaller banks for some transactions. This situation
highlights the need for better systems for INR-RUB exchanges and investments, especially
for large trade deals.
India’s Strategic Moves toward De-Dollarisation
Efforts to reduce dependence on the U.S. dollar were also discussed by Indian Prime
Minister Narendra Modi and Russian President Vladimir Putin in July 2023. These
discussions were part of a broader initiative within BRICS (Brazil, Russia, India, China, and
South Africa) to lessen reliance on the dollar in international trade. India has also started a
digital platform with ASEAN countries to conduct cross-border trade without using the
dollar. Currently, about 60% of trade with Russia is done in local currencies.
The BRICS Initiative
BRICS countries are exploring the possibility of creating a new reserve currency backed by
their collective currencies, although this has not yet been implemented. Projects like the

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BRICS Bridge are looking into using blockchain technology to enhance financial
integration among member countries, especially through central bank digital currencies.
About Dynamic Reference Rate
The “Dynamic Reference Rate” (DRR) that India and Russia are considering would adjust
according to real-time market conditions. It would serve as a benchmark for various
financial products, such as loans and derivatives. Unlike fixed rates, the DRR is designed to
increase transparency and reflect the rates set by central banks, which can help stabilize
markets during volatile times. The use of DRR is growing, especially in emerging markets,
as digital finance continues to advance.[no_toc]
What is the 'yen carry trade’?
Published On Aug 06, 2024

Global equity markets experienced a severe downturn starting on Aug 05, causing
significant declines in major markets from Tokyo to London. Japan’s Nikkei had its largest
single-day drop since 1987, indicating a major systemic issue.
What Happened on August 05, 2024?
On August 05, 2024, markets took a sharp dive. The Nikkei index dropped by 12.40% and
the Topix index by 12.48%, leading to trading halts. European and Indian markets also fell,
with India’s Sensex losing over 2,200 points, wiping out around ₹15 trillion in wealth.
What Caused the Meltdown?
The main reason for this market collapse was the unwinding of the yen carry trade. This
trading strategy involves borrowing money in Japan, where interest rates are low, and
investing it in other countries with higher returns. As Japan started raising interest rates,
this trade became less profitable.
Why is the Yen Carry Trade Unraveling Now?
The Bank of Japan increased interest rates to 0.25% and announced plans to reduce its
bond-buying program, strengthening the yen against the US dollar. This change made the
yen carry trade less attractive, causing investors to sell off their positions quickly.
Are There Other Contributing Factors?
Other factors adding to the market instability included fears of a potential US recession,
marked by rising unemployment to 4.3%, and geopolitical tensions, particularly concerns
about a possible conflict involving Iran.
About yen carry trade
The yen carry trade involves borrowing the Japanese yen at low interest rates to invest in
assets that offer higher returns. It became popular after the 1990s due to Japan’s slow
economic growth. Traders make money by taking advantage of currency fluctuations.
However, this strategy is risky, especially during times of market volatility, as changes in
currency value can lead to significant losses. The Bank of Japan’s monetary policies greatly
affect the success of the yen carry trade. It works best when global investors are willing to
take risks, often leading to large capital flows into emerging markets.[no_toc]

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What is B-Ready Index?

Published On Aug 05, 2024

India is preparing for the World Bank’s new Business-Ready (B-Ready) index, which will
evaluate the global business environment and investment climate. This new index
replaces the Doing Business index and focuses on key factors that affect how businesses
operate.
Transition from Doing Business Index
The B-Ready index aims to give a more complete picture than the Doing Business index. It
will compare countries based on ten important topics that cover the entire life cycle of
businesses. The B-Ready report will focus on crucial areas such as:
Business entry: How easy it is to start a business
Labour: Employment regulations and workforce conditions
Financial services: Access to banking and financial products
International trade: How efficiently goods are imported and exported
Taxation: Tax policies and their impact on businesses
These topics will provide insights into the rules and conditions that businesses operate
under.
International Trade Assessment
One of the key areas is international trade, which looks at how efficiently goods are
imported and exported. This includes customs procedures and the role of digital trade,
which makes it easier to access global markets. Digital trade helps increase transactions
across borders, making international markets more accessible. Simplifying processes and
lowering compliance costs are essential for maximizing the benefits of international trade,
according to officials.
Target for E-commerce Exports
India aims to reach $200-300 billion in e-commerce exports by 2030. Currently, e-
commerce exports make up only a small part (0.9-1.1%) of the country’s total merchandise
exports, so there is a need to become more efficient and increase capacity.
About B-Ready index
The B-Ready index also evaluates how prepared businesses are for economic shocks and
crises. Created by the Global Business Network, it looks at resilience and adaptability,
considering factors like supply chain stability, workforce flexibility, and technology use.
Countries with higher B-Ready scores often recover faster from crises. The index
encourages proactive risk management strategies and has been useful during the
COVID-19 pandemic in helping businesses identify weaknesses. Small and medium-sized
enterprises (SMEs) often score lower due to limited resources. The index highlights the
importance of sustainable practices for long-term resilience.[no_toc]
ADB Loans $200 Million for India's Waste Management Improvement
Published On Aug 02, 2024

The Asian Development Bank (ADB) has approved a $200 million loan to improve how

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solid waste and sanitation are handled in 100 cities across India. This project is part of the
Swachh Bharat Mission 2.0, which aims to create cleaner cities.
Program Objectives
The funding will be used to improve waste management systems, focusing on better ways
to separate, collect, and dispose of waste. The loan was signed by Juhi Mukherjee from the
Finance Ministry and Mio Oka, ADB’s Country Director for India.
Infrastructure Development
The money will be used to build and upgrade facilities for handling waste, including:
Bio-methanation plants: These facilities turn organic waste into energy.
Composting plants: These turn organic waste into useful compost for soil.
Managed landfills: Safe places to dispose of waste.
Material recovery facilities: Places where materials from waste are sorted and
recycled.
Plastic waste processing centers: Facilities to process and recycle plastic waste.
Climate and Disaster Resilience
The plan will include climate protection, disaster readiness, gender equality, and social
fairness in city services. It aims to improve the ability of city management teams to handle
waste and sanitation better. The program will encourage cities to learn from each other
and work with private companies to improve services.
About Swachh Bharat Mission 2.0
Swachh Bharat Mission 2.0, started in 2021, focuses on making sanitation practices last
longer and be more effective. Its goal is to improve how cities handle their waste by
encouraging community involvement. The mission supports using scientific ways to
process waste, like composting (turning waste into useful compost) and recycling. It also
aims to build more public toilets, especially for women. This effort matches the United
Nations’ goals for sustainable development and seeks to create overall cleanliness in
cities, making urban life better and tackling environmental issues in a meaningful
way.[no_toc]
India aims for $30 Trillion Economy by 2047
Published On Jul 31, 2024

India aims to become a USD 30 trillion economy by 2047, the 100th anniversary of its
independence. According to a plan by NITI Aayog, called ‘Vision for Viksit Bharat @ 2047’,
the goal is to raise the average income per person to USD 18,000 per year. This plan is
designed to help India avoid getting stuck at a middle-income level.
Economic Aspirations
To reach this goal, India needs to grow its economy from the current USD 3.36 trillion to
USD 30 trillion, which means it has to grow nine times bigger in the next couple of
decades. The average income per person also needs to increase from USD 2,392 to USD
18,000. The report says moving from a middle-income to a high-income country requires a
steady annual growth rate of 7-10% for 20-30 years. Only a few countries have managed

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to maintain such high growth rates consistently.

Defining Viksit Bharat
The idea of Vikshit Bharat means creating a country with high income and advanced
social, cultural, technological, and institutional attributes. According to the World Bank, a
high-income country has an average annual income per person of more than USD 14,005
(as of 2023). The plan identifies several key challenges, such as improving manufacturing
and logistics capabilities and reducing the income gap between rural and urban areas.
These improvements are essential for turning the agricultural workforce into a strong
industrial workforce.
Collective Efforts
NITI Aayog stresses that achieving this vision requires the participation of the entire
nation, not just a few individuals or the government. The document highlights that this is
a crucial moment for India, suggesting that the 21st century could be India’s century.
Success depends on balancing energy security, accessibility, affordability, and
sustainability.
About Viksit Bharat
Vision for Sustainable Growth: ‘Viksit Bharat,’ or ‘Developed India,’ embodies India’s
goal for sustainable development by 2047, focusing on reducing poverty, achieving
gender equity, and ensuring environmental sustainability.
Urbanization and Smart Planning: With India’s urban population expected to reach
600 million by 2031, smart urban planning is crucial. Key areas of focus include
digital innovation and renewable energy.
Skill Development and Economic Self-Reliance: The government prioritizes skill
development through initiatives like ‘Skill India’ and promotes local industries via
‘Make in India’ to foster economic independence and growth.
[no_toc]
Pakistan Seeks Debt Re-Profiling for IMF Bailout Package
Published On Jul 30, 2024

Pakistan is currently in talks with China, Saudi Arabia, and the UAE to reschedule over $27
billion in debt and other financial obligations. This step is crucial for Pakistan to secure a
$7 billion bailout from the International Monetary Fund (IMF) and to ease financial
pressures in its energy sector.
Debt Re-profiling Requests
Pakistani Finance Minister Muhammad Aurangzeb has asked these countries to extend
the repayment period of their loans by three to five years. These loans include $5 billion
from China, $4 billion from Saudi Arabia, and $3 billion from the UAE. Extending the
repayment period will help Pakistan get the needed financial support from the IMF.
Current Financial Challenges
Pakistan’s economy faces several problems, including high interest rates, increasing
energy prices, a devalued currency, and heavy taxes. Aurangzeb emphasized that Pakistan

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needs long-term structural reforms rather than temporary fixes to these issues.
Dependence on Key Partners
Financial help from China, Saudi Arabia, and the UAE is a significant part of Pakistan’s
external funding, mainly through commercial loans and special deposits. While these
financial relationships are unique but crucial for Pakistan’s economy.
China’s Position
China has shown its willingness to help Pakistan by acknowledging its foreign exchange
problems and supporting debt restructuring. Pakistan is working with Chinese consultants
to discuss re-profiling energy sector payments with relevant financial institutions.
Future Steps
Aurangzeb mentioned that the IMF has assessed Pakistan’s financial needs, including the
proposed $7 billion Extended Fund Facility. Once Pakistan secures debt rollovers from its
partners, it expects to manage its remaining external financing gap. Pakistan’s efforts to
reschedule its debts are essential for gaining IMF support and improving economic
stability. Ongoing discussions with China, Saudi Arabia, and the UAE are vital for
addressing immediate financial challenges and paving the way for long-term recovery.
About the International Monetary Fund
IMF’s Growth: The International Monetary Fund (IMF) started in 1944 with 44
countries and now has 190 member nations.
Main Role: The IMF helps countries work together on money issues and keeps the
global economy stable. It gives financial help and advice but requires countries to
follow certain rules to get loans.
Special Currency and Location: The IMF created a special type of money called
Special Drawing Rights (SDRs) to help with global finances. The main office is in
Washington, D.C., and different member countries take turns leading the IMF.
[no_toc]
What is LTCG Tax?
Published On Jul 29, 2024

The long-term capital gains (LTCG) tax system underwent substantial modifications in the
Union Budget for 2024–2025; most notably, the indexation advantage was eliminated.
Taxpayers were confused and concerned about this choice, but the government clarified it
and insisted that the adjustments would be beneficial in the majority of cases.
What is Indexation?
The process of indexation involves modifying an asset’s acquisition price to reflect
inflation during the asset’s holding period. It is possible to compute capital gains or losses
upon sale more precisely by updating the acquisition cost. Because it accounts for the
depreciation of money’s purchasing power owing to inflation, the adjusted figure—also
referred to as the indexed cost of acquisition—reflects a more realistic number.
Impact of Withdrawal of Indexation Benefit
Because the indexation benefit is no longer available, earnings from asset sales may seem

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inflated without taking inflation into account. If tax rates stay the same, this could mean
that taxpayers owe more in taxes. Those who have owned assets for a long time may be
most impacted by this.
Changes in the LTCG Regime
The LTCG tax rate is being lowered from 20% to 12.5% under the recently announced new
regime, which also does away with indexation for determining gains on assets like gold
and real estate. The fair market value as of April 1, 2001, will be applied as the acquisition
cost for assets acquired prior to that date; this exception is meant to reduce the tax
burden on inherited properties.
Government’s Justification
The government claims that by eliminating distinct tax rates for different asset classes,
this streamlining of the capital gains tax system benefits the majority of taxpayers. They
contend that real estate nominal gains frequently outpace inflation, indicating possible tax
benefits under the new system.
Criticism and Grandfathering Issues
Opponents draw attention to the absence of grandfathering clauses, which would have
permitted older transactions to continue to be subject to older tax laws through July 2024.
Long-term investors are concerned about this move because, in the absence of
transitional relief measures, their tax bills may rise. According to the government, the
lower tax rate makes up for the lack of grandfathering benefits.[no_toc]
What is Agristack and how will it work?
Published On Jul 25, 2024

In the 2024-25 Budget, Nirmala Sitharaman, the Finance Minister, called for a Digital
Public Infrastructure (DPI) for the agriculture sector. The goal of this DPI is to connect
more than six crore farmers to a formal land registry system through a project called
Agristack.
What is Agristack?
Agristack is a digital framework that is meant to build a complete database for farmers
that includes information about their identity, land records, income, loans, crop
information, and insurance history. It uses data from farms and information that comes
from government APIs.
Data Sources
The information for Agristack will come from three main databases:
Farmers Registry: Gives each farmer a unique digital ID that is tied to their Aadhaar
and land records.
Geo-referenced Village Maps: These maps show how farms look and keep track of
crops through digital surveys.
Crop Sown Registry: This uses satellite data and remote sensing technology to
make accurate maps of crops.
Agristack was started by the Ministry of Agriculture in 2021 based on the suggestions of a

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task group. Its design was spelled out in a white paper, which led to pilot projects in
several states.
Purpose of Agristack
Agristack wants to make it easier to get information, cut down on unnecessary copies, and
improve the accuracy of agriculture records. This unified method will help farmers plan
their sales and assist the government in putting the scheme into action and keeping an
eye on it. e-Nam, eChoupal, and NeML are some of the applications that will be part of the
framework. These will give farmers important information about the weather, market
supply lines, and storage.
Stakeholders Involved
It is the Ministry of Agriculture and Farmers’ Welfare that is in charge of Agristack. Private
companies like Amazon and Microsoft work together on some use cases, but they don’t
have direct access to Agristack data yet. Some problems that could happen are old land
records and the speed at which things are being digitized, which could make Agristack
less useful. To solve land border disputes, you need a strong way to settle
disagreements.[no_toc]
What is a Climate Finance Taxonomy?
Published On Jul 24, 2024

Nirmala Sitharaman, the Minister of Finance in India, presented the Union Budget on July
23, 2024. In it, she highlighted the initiative taken by the government to build a “climate
finance taxonomy.” Through the implementation of this strategic shift, the goal is to
increase funding for climate adaptation and mitigation, so making it easier for India to
meet its climate pledges and transition to a greener economy. A taxonomy of climate
finance is a systematic framework that classifies the various sectors of the economy that
might be deemed to be investments that are sustainable toward the environment. It gives
vital instructions for investors and banks, channeling large cash towards solutions that are
meaningful for the difficulties posed by climate change.
Significance of Taxonomy
It is important that we make the transition to a net-zero economy as the effects of climate
change continue to increase and global temperatures continue to rise. Taxonomies are
essential instruments that are used to analyze whether or not economic activities comply
with credible transition paths that are based on scientific evidence. Both the deployment
of climate capital and the mitigation of risks associated with greenwashing are fostered by
them, which guarantees true environmental benefits.
Potential for Green Investments in India
Between the years 2018 and 2030, India is expected to have a climate-smart investment
opportunity worth around $3.1 trillion. Some important areas of investment include: –
Electric Vehicles: [Translation] Estimated to be 667 billion dollars, with the goal of having
all new automobiles be electric by the year 2030. The estimated value of renewable energy
is $403.7 billion, which indicates that there will be a tremendous rise in the use of

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sustainable energy sources.

Global Context – Existing Taxonomies
Taxonomies for climate funding have been produced by a number of countries, and
others are currently in the process of developing their own. Several nations, including
South Africa, South Korea, Thailand, and members of the European Union, have
constructed frameworks in order to encourage investments that are environmentally
responsible.
India’s Climate Commitments
Achieving a net-zero economy by the year 2070 is one of India’s climate targets. Other
goals include decreasing the emissions intensity of GDP by 45% by the year 2030
compared to the levels in 2005 and ensuring that fifty percent of India’s electric power
capacity comes from non-fossil sources by the year 2030. These agreements highlight the
urgency and necessity of the proposed taxonomy for climate finance, which is intended to
facilitate funding and investments as part of this transition.
About green investments
Projects that promote environmentally friendly practices are the primary emphasis of
green investments, which are sometimes referred to as ecologically sustainable
investments. Notably, green bonds were first established in 2007, and they are used to
fund conservation and renewable energy. According to projections, the worldwide market
for green investments would exceed $50 trillion by the year 2025. The reduction of carbon
footprints and the possibility for improved long-term profitability are both possible
outcomes of green investments. It is interesting to note that the word “greenwashing”
relates to making false claims about sustainability, yet the Green Deal implemented by the
European Union aspires to achieve carbon neutrality by the year 2050. Diversification
away from fossil fuels is another strategy that is utilized by a number of different
institutions.[no_toc]
Economic Survey 2023-24 - Recent Updates
Published On Jul 22, 2024

On July 22, the Economic Survey 2023–24 will be released by Union Finance Minister
Nirmala Sitharaman. This is the first day of the summer session of Parliament. This is not
how things usually work; Economic Surveys usually come out on January 31. But in
election years, like 2024, there will be a shorter report before the interim budget.
What is the Economic Survey?
There is a lot of information in the Economic Survey about the state of the national
economy for the fiscal year that is coming to an end. The Chief Economic Adviser guides
the Economic Division of the Department of Economic Affairs in making it, and the Finance
Minister gives his or her approval. The poll has changed in both format and frequency
since it began in 1950–1951.
Historical Presentation
The Economic Survey was first shown along with the Union Budget until 1964. For many

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years, it was published in a single volume that covered many areas of the economy, such
as industry, agriculture, and services. It came out in two volumes, from 2010–11 to
2020–21, and had a lot of in-depth analysis on important economic problems. It went back
to a single-volume style as of 2022–2023, which happened at the same time as a change in
the office of the Chief Economic Adviser.
Significance of the Economic Survey
Even though the Economic Survey is close to the budget, its conclusions and suggestions
do not affect budget choices. It is, however, the government’s most thorough economic
study to date, and it gives us a way to think about the Indian economy.
Focus Areas for 2023-24
The study this year is likely to look at India’s growth path, especially in light of the
problems that have come up since COVID-19. The IMF has slightly raised its prediction for
India’s growth in 2024–25, but big problems like high unemployment and rising poverty
still loom large. The study should find out how much the economy has recovered and
suggest policy changes that will help industries like manufacturing get back on their feet
in a world where the economy is uncertain.[no_toc]
IMF Agrees to $7 Billion Loan Program for Pakistan
Published On Jul 13, 2024

The International Monetary Fund (IMF) and Pakistan reached a deal on July 12, 2024, for a
$7 billion loan program that will last for 37 months. The main goal of this Extended Fund
Facility program is to help Pakistan, a country that has had a lot of economic problems,
become more stable and grow in a way that benefits everyone.
Approval and Conditions
The IMF has said that the new program can’t start until its Executive Board agrees to it.
Pakistan also needs to get “timely confirmation of necessary financing assurances” from
important developmental and bilateral partners like China, the United Arab Emirates, and
Saudi Arabia. These assurances could include loan rollovers or payments.
Background of Negotiations
This deal was discussed in May after a short-term $3 billion scheme was successfully
finished. This earlier scheme was very important for stabilizing Pakistan’s economy and
keeping the country from defaulting on its debt.
Economic Reforms and Aims
Nathan Porter, head of the IMF mission in Pakistan, said that the goal of the new program
is to build on the “hard-won macroeconomic stability” of the past year. To encourage
growth driven by the private sector, efforts will be focused on improving the economy’s
health, lowering inflation, building up external buffers, and getting rid of economic flaws.
Fiscal Targets and Economic Challenges
To get ready for the IMF program, Pakistan has set a high tax income goal of 13 trillion
rupees ($47 billion) for the fiscal year that starts on July 1. This is almost 40% more than
the previous year’s goal. Pakistan’s economy has been unstable in the past, which is why it

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has needed 22 IMF bailouts since 1958. Pakistan is still the IMF’s fifth-biggest customer,
with $6.28 billion in loans still due as of mid-July 2023. This project shows that the
Pakistani government, led by Ali Pervaiz Malik, Minister of State for Finance, Revenue, and
Power, is still working to keep the economy growing and the finances stable. Malik has
stressed how important it is to finalize the new loan agreement before the IMF Executive
Board’s annual August break. However, the exact time that the board will consider the
deal is still unknown.[no_toc]
What is Angel Tax? - Current Updates (July, 2024)
Published On Jul 11, 2024

The Department for Promotion of Industry and Internal Trade (DPIIT) has suggested that
the unpopular “angel tax” on startups should be gotten rid of. This could be announced in
the Union Budget. The DPIIT secretary stated that a proposal to get rid of the tax has been
made. The goal is to make it easier for startups to get funding and make them more
appealing to investors.
Understanding Angel Tax
Angel tax is a tax that private companies have to pay on raised money that is more than
their fair market value. It mostly affects payments from angel investors, which is how the
name came about. Section 56(2) VII B of the Income Tax Act put this tax in place. It says
that any premium on selling shares to foreign buyers is “income from other sources,”
which means it needs to be taxed.
Origins of Angel Tax
The angel tax was included in the 2012 Union Budget by Pranab Mukherjee, who was
Finance Minister at the time. Its goal was to stop people from moving money. In April
2018, a big change was made: startups didn’t have to pay this tax if the total investment,
including funds from angel investors, didn’t go over 10 crore. However, they still had to
get more licenses and valuation certificates.
Rationale Behind DPIIT’s Recommendation for Repeal
This suggestion came from talking with people in the startup environment and industry
groups that were constantly worried about how the angel tax would hurt startup funding
and growth. The DPIIT has told the finance ministry about these worries and suggested
that getting rid of it could help capital formation in the country a lot.
Impact on Startups
Getting rid of the angel tax could greatly help India’s over 141,000 DPIIT-registered
startups. It would also make angel investments more attractive and smart financially.
Angel tax is currently seen as a turnoff by possible investors because it lowers the amount
of money that can be used to grow and reinvest in startups. The Confederation of Indian
Industry (CII) and other business groups have been vocal supporters of lowering this tax
to help the startup environment.
Current Investment Trends and Challenges
A small drop in startup fundraising efforts was seen in the first half of 2024, which shows

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that the economy is tough for new tech startups. Also, big drops in the values of well-
known startups are a sign of a wider slowdown in funding, which is made worse by
investors’ careful views on the world’s markets. Getting rid of the angel tax might help
with some of these problems by promoting more robust business activities.[no_toc]
India, Russia Aim for $100 Billion Trade Target by 2030
Published On Jul 10, 2024

At the 22nd yearly summit between Russian President Vladimir Putin and Indian Prime
Minister Narendra Modi in Moscow, India and Russia announced a plan to improve their
strategic economic cooperation. This is a big deal. This move comes at a time when trade
between the two countries is growing quickly. The two countries have set the lofty goal of
trading $100 billion worth of goods by 2030.
Expansion of Trade and Investments
The leaders signed nine Memorandums of Understanding (MoUs), which focused on
different areas. One of the most important agreements was one to boost trade and joint
business projects in Russia’s Far East, which was said to be a key area because of its
wealth of resources. The deals also aim to make the most of opportunities by building the
Vladivostok-Chennai corridor, speeding up the integration of the International North-
South Transport Corridor (INSTC), and making the most of the Northern Sea Route.
Technological and Financial Integration
Adopting digital financial assets and making a two-way settlement system that uses
national currencies are important parts of economic cooperation. These could help
balance out the effects of Russia’s exclusion from SWIFT. The RuPay and MiR card systems
of India and Russia are also recognized by each other as part of this strategic financial
union. This makes it easier and faster to send money between the two countries.
Energy and Resource Collaboration
The deals show that countries are working together more closely in important energy
areas, such as nuclear energy. Increasing the flow of coking and anthracite coal from
Russia to India was also talked about. This would improve India’s energy security and
meet industry needs.
Focus on Arctic and Eurasian Connectivity
Indian and Russian leaders have agreed to help build and open up shipping paths through
the Arctic’s Northern Sea Route. This is meant to increase trade and make Eurasia’s
transportation routes more stable. As part of the partnership, stable supply and demand
chains are being set up across the area. This is seen as a possible counterbalance to
Chinese efforts in Eurasia by experts.[no_toc]
India Creates 46.7 Million Jobs in Fiscal 2023-24
Published On Jul 09, 2024

India’s employment rate went up a lot in the fiscal year 2023–24, adding 46.7 million new
jobs for a total of 643.3 million jobs across the country. The number of jobs has grown by
6%, which is a big jump from the 3.2% growth rate in the previous fiscal year. These

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numbers are shown in the Reserve Bank of India’s (RBI) newly released provisional output
report.
The Significance of RBI’s Provisional Productivity Report
The RBI has now posted a provisional estimate for economic productivity for FY24. This is
the first time that this has been done. In contrast to its previous reports, which only
looked at past data, this new report measures output using currently available data. This
important change makes it easier to see how India’s economy is changing right now,
especially in the job market.
Contrasting Views on Unemployment
Even though there are signs that more jobs are being created, the rising jobless rate is still
a worry. The Center for Monitoring the Indian Economy (CMIE) reported that the jobless
rate rose from 7% the previous month to 9.2% in June 2024. This was the highest rate in
eight months. These numbers differ from the positive news about job creation, which has
led to ongoing arguments about “jobless growth,” a big topic of conversation during the
last parliamentary election.
GDP Growth and Future Employment Prospects
India’s GDP grew by an amazing 8.2% in FY24, which was more than expected. The RBI has
predicted that the GDP will continue to grow at a rate of 7.2% in FY25, which is in line with
this strong growth. Citibank research, on the other hand, shows that even a 7% GDP
growth would only create 8 to 9 million jobs, which might not be enough to meet the
needs of workers over the next ten years. This study shows that the connection between
GDP growth and real job creation is not as simple as it seems.
Methodology Behind the Data
The RBI’s estimates use information from the Ministry of Labour and the government’s
National Accounts to extrapolate levels of output and employment across 27 industries
that represent the whole Indian economy. These estimates are given at broad sectoral
levels, such as for agriculture, manufacturing, and services. This gives a full picture of job
conditions in many economic areas.[no_toc]
Gujarat FDI Jumps 55%, Hits $7.3 Billion in FY 2023-24
Published On Jul 06, 2024

Foreign Direct Investment (FDI) has grown a lot in Gujarat during the fiscal year 2023–24,
reaching a total of USD 7.3 billion. This is a 55% rise from the previous year, making the
state, after Maharashtra, the second-highest receiver of FDI in India. Several effective
policies and programs put in place by the state government are to blame for the rise in
FDI, which is an extra USD 2.6 billion compared to the fiscal year 2022–2023. Gujarat has
gotten more foreign capital than Karnataka and Delhi combined. It is now only behind
Maharashtra, which got USD 15.1 billion in the same period.
Strategic Initiatives and Outcomes
Gujarat has seen steady growth in foreign direct investment (FDI), rising from USD 2.7
billion in 2022 to USD 4.7 billion in 2023 and then to USD 7.3 billion in 2024. This is thanks

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to Prime Minister Narendra Modi’s vision for a “Viksit Bharat” (Developed India) and Chief
Minister Bhupendra Patel’s policies that are good for business. Through improving
industrial infrastructure and making business-friendly environments, these policies aim to
make the country a good place to spend.
Factors Influencing Investment Inflows
GIFT City, Sanand GIDC, Dholer SIR, and Mandal Becharaji SIR are some of the cluster-
based industrial areas that have helped bring in a lot of investment. Gujarat has also
become more appealing to foreign investors thanks to big projects like microchip
factories. FDI has been boosted even more by sector-specific policies in areas like IT,
semiconductors, and green energy, as well as financial incentives and faster business
processes.
About Foreign Direct Investment (FDI)
Economic Impact: Foreign Direct Investment, or FDI, is when a company from one
country buys a business in another country or grows its operations there. Foreign
direct investment (FDI) can have a big effect on the world economy by creating jobs
and improving infrastructure. However, it can also cause foreign companies to take
over local markets.
Global Trends and Monitoring: Global FDI numbers are kept an eye on by the
United Nations Conference on Trade and Development (UNCTAD). It was China, not
the U.S., that received the most FDI in 2020. Technologies, energy, and health care
are some of the main areas that draw FDI.
Regulations and Incentives: FDI flows are affected by bilateral investment deals
because they protect investors legally. For developing countries to draw FDI, they
often offer incentives. This can help the economy grow but can also make people
dependent on the country. For the sake of national security, there are tight rules on
sensitive areas like defense and telecommunications.
[no_toc]
ADB to build 400 MW Solar Power Plant in Gujarat
Published On Jul 05, 2024

Asian Development Bank (ADB) has made a major financial move to support renewable
energy by giving the ENGIE group a Rs 1,460 crore loan. Using this money, a 400-
megawatt solar photovoltaic power plant will be built in Surendranagar, Gujarat. This
program fits with India’s big plan to build at least 500 gigawatts of non-fossil fuel energy
output by 2030.
Financial Structure and Partnerships
The organized financing includes a loan of Rs 14.6 billion, which is about $175.9 million.
The main donors are the Asian Development Bank (ADB) and the Asian Infrastructure
Investment Bank (AIIB), each giving Rs 7.3 billion. Big international banks are all
committed to supporting sustainable growth, and this financial partnership shows that.

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Impact on Climate Change and Local Economy

India’s move toward better energy is based on this project, and the world’s fight against
climate change is equally important. It was emphasized by Suzanne Gaboury, ADB
Director General for Private Sector Operations, how important the private sector is to this
journey of change. This solar plant also uses bifacial photovoltaic power modules made in
the United States. This supports the domestic solar module industry and broadens the
supply chain.
Environmental and Long-term Benefits
Over its estimated 25-year service life, the Surendranagar solar plant will produce an
average of 805 gigawatt-hours of electricity each year. This production power means that
about 662,441 tonnes less carbon dioxide is released into the air every year. This project
shows how ADB plans to help facilitate long-term local currency financing for renewable
energy projects, which aren’t always backed by local capital markets.
History and Future Directions
ENGIE and the ADB have worked together before in India. After working together to
finance ENGIE’s main project in 2020, this is their second project together. ADB is
dedicated to building stable, long-term partnerships with groups that support green
energy and sustainability, as shown by these continuing partnerships. By making smart
investments, this method not only helps with environmental goals but also makes the
economy more stable.[no_toc]
Bharat Bill Payment System
Published On Jul 04, 2024

From July 1, all credit card payments made through third-party apps must go through the
Bharat Bill Payment System (BBPS), which is what the Reserve Bank of India (RBI) wants.
People with credit cards from big Indian banks will be affected by this restructuring. They
won’t be able to use platforms like CRED, PhonePe, Amazon Pay, and Paytm to pay their
bills unless they are integrated with BBPS.
Definition of the Bharat Bill Payment System (BBPS)
It is run by the National Payments Corporation of India (NPCI) and is meant to make the
payment process faster for both companies and customers. Many different ways to pay
are supported by this method, including both physical and digital ones. It lets people
quickly and easily make transactions across a network of banks, apps, and websites. It also
lets people choose from different payment ways to suit their needs.
Significance of BBPS in Recent RBI Policies
The goal of adding BBPS is to make the processing of credit card payments in India more
consistent and safe. The RBI wants to make things more regulated and clear by sending
all third-party app payments through BBPS. This will lower the risks of illegal data access
and financial mistakes. By combining different payment methods on a single site, this
system also makes monitoring easier and transactions less complicated.

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Current Integration Status with BBPS

Twelve Indian banks, including well-known ones like SBI, ICICI Bank, and Kotak Bank, are
currently active members of the BBPS network as of the prescribed date. Though, big
banks like HDFC Bank and Axis Bank are still working on connecting their systems to BBPS.
Challenges in Integration
Because of the large investments needed to completely change systems that already serve
many third-party apps, some banks may have been slow to integrate. Additionally to
making transfers easier, these platforms allow banks to collect large amounts of customer
data that helps them provide more personalized services. Transitioning to BBPS requires a
lot of resources and changes to how internal banking works, which might not be seen as
immediately profitable.[no_toc]
Tata Leads as India's Most Valuable Brand, Grows 9%
Published On Jul 02, 2024

Tata Group is still India’s most valuable brand, with a value of US$ 28.6 billion, which is 9%
more than the previous year. With this kind of progress, Tata is almost ready to become
the first Indian brand to be worth more than $30 billion.
Leading Brands and Rankings
The second most valuable company is Tata Group, followed by Infosys. The third most
valuable company is the HDFC Group, which moved up to second place after merging with
HDFC Ltd. Notably, Taj is known as India’s strongest brand, with an impressive Brand
Strength Index (BSI) score of 92.9 out of 100 and a AAA+ ranking.
Sectoral Growth
Brand value grew by an amazing 61% in the telecom business, mostly thanks to big names
like Jio, Airtel, and Vi. The banking industry also grew by a big 26%, and State Bank of India
(SBI) became the second most important bank in the country.
Fastest Growing Brands
Westside became the fastest-growing brand, with a 122% rise in its brand value.
Motherson comes in second with an 86% rise, and Sonata Software comes in third with an
83% rise. In the IT field, Hexaware had the most growth, with a 20% rise in brand value.
Because more money is being put into manufacturing and infrastructure, the mining, iron,
and steel businesses have grown by 16%. Companies like Zetwerk have become major
players; in fact, Zetwerk is now the second most valuable engineering name, worth $543
million.
Aviation and Emerging Brands
A 26% rise in brand value has made Indigo Airlines worth more than $1 billion, which is a
big deal. New players in the market, like HMEL and CIEL HR, have also made big changes
to the scene.
Global Influence and Strategic Focus
The managing director of Brand Finance India, Ajimon Francis, talked about India’s
growing impact around the world, especially in the “Global South.” He focused on ideas

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like development, independence, and freedom. In keeping with these ideas, India is
quickly becoming a popular place for manufacturing, engineering services, and research
and development. Companies like Tata, Infosys, SBI, and Airtel are examples of global
leaders in these fields.
Top 10 Most Valued Brands in India 2024
1. Tata Group
2. Infosys
3. HDFC Group
4. LIC Group
5. Reliance Group
6. SBI Group
7. Airtel
8. HCLTech
9. Larsen & Toubro Group
10. Hindustan Petroleum
[no_toc]
What is Project Nexus by RBI?
Published On Jul 02, 2024

The Reserve Bank of India (RBI) has joined Project Nexus, a worldwide effort to make it
easier for people to send money instantly across borders. To do this, Fast Payment
Systems (FPSs) in different countries are linked together. In this plan, the Unified
Payments Interface (UPI) of India will link to the FPSs of Malaysia, the Philippines,
Singapore, and Thailand. This is all part of the project.
About Project Nexus
The Bank for International Settlements (BIS) Innovation Hub started Project Nexus to
bring about a new way of doing things in international payments. Nexus’ main goal is to
improve international money transfers by combining different local Instant Payment
Systems (IPS) in a way that doesn’t cause any problems. With this promise, Project Nexus
will be the first live implementation-focused project for the payments industry by the BIS
Innovation Hub. The framework of the project supports an open, quick, and safe space for
sending money across borders, supporting connectivity for both Person to Person (P2P)
and Person to Merchant (P2M) payments.
Advantages of Project Nexus
Project Nexus is unique because it can standardize the connectivity methods for instant
payments around the world. In the past, each country’s FPS needed its unique links to
each other’s. With Nexus, these systems only need one way to connect to the platform.
This makes the process much easier and cuts down on the time and money needed for
integration. Some of the biggest benefits are faster purchases (often finished in less than
60 seconds) and lower costs, which lead to more users and happier users.

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Membership and Expansion

Founding Members of Project Nexus: At its commencement, Project Nexus will
include the Fast Payment Systems (FPSs) of four Association of Southeast Asian
Nations (ASEAN)—Malaysia, Philippines, Singapore, and Thailand—alongside India.
These nations, recognized as the founding members of the Nexus platform,
formalized their participation and mutual commitment at a signing event held in
Basel, Switzerland, on June 30, 2024.
Future Expansion Plans: Looking into the future, additional countries like Indonesia
have expressed intentions to join the initiative, indicating potential growth and
broader interconnectivity within global payment networks.
Economic Impact and Efficiency: The Reserve Bank of India (RBI) and its partners
want to strengthen the economy so that digital transactions across borders are not
only possible but also as common and quick as those conducted within the country.
[no_toc]
India Tops Global Remittance with $125 Billion in 2023
Published On Jun 29, 2024

In 2023, India achieved the highest record of remittance inflows globally, amassing USD
125 billion. Strategic economic deals and strong job markets in other countries, especially
in the US, UK, and Singapore, were the main things that caused this rise. One important
mutual agreement with the United Arab Emirates (UAE) stood out. It made it easier for the
two countries to use their currencies in trade.
What is Remittance Trends?
According to the Migration and Development Brief from the World Bank, more money is
being sent back to India. This is helping to increase the share of money coming into South
Asia, from 63% in 2022 to 66% in 2023. Even though the rate of growth was supposed to
drop from the previous year’s high of 24.4% to 12.4%, this rise showed big growth. One
reason for this growth is that inflation is going down and there are lots of job chances in
high-income countries, where a lot of highly skilled Indian professionals live.
Impact of Economic Agreements on Remittances
India and the UAE signed a deal in February 2023 to encourage trade in the Indian Rupee
and the Emirati Dirham. This was a very important step. This agreement makes trade and
money transfers easier and less dependent on third-party currencies, which could lead to
more and faster money transfers. It turned out that the UAE was India’s second-largest
source of remittances, which shows how important this economic relationship is.
Global Perspective on Remittance Flows
Many businesses, especially those in low- and middle-income areas, depend on
remittances coming in. They are very important for keeping current accounts and budget
deficits in check. It is expected that global remittances grew by 3.8% in 2023, which was
less than the big growth seen in the two previous years. This slowdown is a sign of bigger
problems in the economy, like rising prices around the world and weak growth chances,

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that could affect migrants’ real incomes in 2024. This summary of the World Bank report
shows how India’s strong role in global remittances is driven by smart economic
partnerships and strong global labor markets that play a big role in its socioeconomic
framework.
About the India-UAE bilateral trade agreement
Trade Expansion Goals: The India-UAE Comprehensive Economic Partnership
Agreement (CEPA), which was signed in February 2022, wants to double trade
between the two countries to $100 billion in five years. Starting in May 2022, the deal
aims to lower tariffs on 80% of goods, and over time, it will cover 90% of trade goods.
Sectoral Focus and Investment: Key industries like petrochemicals, gems, jewelry,
and fabrics are part of CEPA, which means that big investments will be made in
infrastructure. This important agreement should strengthen business ties and
encourage growth in many areas.
Innovation and Duty-Free Access: The deal also makes it possible for businesses to
work together in new areas like AI, blockchain technology, and fintech. Notably,
CEPA wants to let 90% of India’s goods go to the UAE duty-free, which will make
trade between the two countries easier.
[no_toc]
World Bank Grants $1.5 Billion for India's Green Energy Push
Published On Jun 29, 2024

The World Bank has agreed to lend India $1.5 billion to help it move toward a low-carbon
energy future. This strategic funding will help create green hydrogen and electrolyzers
and make it easier for the country to use renewable energy.
Objective and Implementation
The main goal of this money is to improve India’s energy policies and rules so that more
investments can be made in the energy transition industry. One important part of this is
encouraging new ideas in green hydrogen and sustainable energy. The World Bank’s plan
is set up to do more than just fund direct projects. It also aims to support policymaking
and provide professional assistance for creating important interventions.
Mobilising Further Financing
One important part of this initiative is that it focuses on getting more private sector
money into the energy industry. This move fits with the bigger goal of boosting green
energy options like floating solar power systems and offshore wind farms.
Enhancing Energy Efficiency
In addition to giving money, the World Bank’s program aims to make different areas more
energy efficient, such as by encouraging the construction of green buildings. Also,
attempts will be made to change grid codes so that renewable energy sources can be
used more. This will make the energy systems stronger and last longer.
Integrating Renewable Energy into the Grid
Renewable energy being added to the national grid is a key part of the program’s plan. As

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part of the scheme, existing grid codes will be changed to make room for more renewable
energy. Aside from that, it wants to encourage options like battery energy storage that
make it easier to provide clean power all day. The World Bank’s all-around method shows
a complete plan to help India switch to a low-carbon economy, which will allow it to keep
up with its fast economic growth while also taking environmental impacts into
account.[no_toc]
RBI Revises SAARC Currency Swap Framework for 2024-2027
Published On Jun 28, 2024

A new system for currency swaps between SAARC countries has been set up, covering the
years 2024–2027. This is a big update from the Reserve Bank of India (RBI). This project is
meant to help the member countries of the South Asian Association for Regional
Cooperation (SAARC) stay financially stable. The Reserve Bank of India’s decision is part of
ongoing attempts to improve financial cooperation in the SAARC region. Exchange rates
and currency swaps are financial tools that help countries handle foreign exchange and
liquidity problems well, keeping the world’s economies stable.
New Additions to the Framework
One important change in the new system is the addition of a separate Indian Rupee (INR)
Swap Window. This new window has a total sum of ₹250 billion and is meant to make
swaps in Indian Rupee easier. India wants to make it easier for people in the area to use
the Indian Rupee (INR).
Dollar and Euro Swap Provisions
Along with the INR Swap Window, the RBI still has a separate swap option for US Dollars
and Euros, with a total of $2 billion in assets. Offering a range of currencies makes it
easier to help more people with different needs and gives SAARC countries access to
major currencies.
Operational Mechanism
With this plan in place, RBI will make straight swap deals with the central banks of the
SAARC countries. The swap lines can’t work without these deals, which spell out the rules
for exchanging currencies and getting financial help.
SAARC Currency Swap Facility Origins and Goals
When it opened in November 2012, the SAARC currency swap facility was meant to be a
safety net for countries facing short-term problems with their foreign exchange and
balance of payments until more permanent answers can be found. This building shows
how SAARC countries can work together to keep their economies stable and cooperative.
Eligibility and Access
To use the currency swap facility, SAARC member countries must make bilateral swap
deals with the RBI. This makes sure that all the countries that are taking part have decided
on the terms of support, which are in line with their own and the group’s economic
goals.[no_toc]

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What is e-Rupee, India's Digital Currency?

Published On Jun 27, 2024

The number of deals involving India’s digital currency, the e-Rupee, has dropped sharply,
falling to a tenth of what it was in December. At the end of last year, there were 1 million
retail sales every day. Now, there are only 100,000 transactions every day.
Introduction to e-Rupee
The e-Rupee was launched on December 1, 2022, by the Reserve Bank of India (RBI) as a
Central Bank Digital Currency (CBDC). It is a digital equivalent of the traditional rupee and
is designed to function as a legal tender for all types of financial transactions.
Types of CBDCs
CBDCs are categorized into two main types:
Retail CBDCs: It is meant to be used by the public via digital wallets, smartphone
apps, or other payment systems.
Wholesale CBDCs: It is used by banks to settle transactions between banks and for
other large-scale financial activities.
Issuance & Acquisition of e-Rupee
The Reserve Bank of India (RBI) provides e-Rupees, which are electronic tokens with values
that are similar to real money. These tokens are given out by commercial banks and can
be bought with digital wallets that are offered by licensed financial institutions. With
features like scanning QR codes and cell number transactions, E-Rupee makes it possible
for people to buy and sell things with each other and with businesses. Gateways for the
Unified Payments Interface (UPI) make the transfers go smoothly.
Advantages of Using e-Rupee
Financial inclusion: This makes it easier for everyone, including people who don’t
have bank accounts, to use digital financial services.
Efficiency: Speeds up transactions and lowers costs compared to standard banking.
Security and transparency: Uses blockchain technology to make sure transfers are
safe, lowering the risk of fraud.
[no_toc]
World Investment Report 2024 - India's FDI Falls 43% in 2023
Published On Jun 25, 2024

Foreign Direct Investment (FDI) around the world went down by 2% in 2023 compared to
2022. The drop varies from country to country, with big drops seen in India, China, France,
Australia, and the USA. The 2024 World Investment Report from the United Nations
Conference on Trade and Development (UNCTAD) goes into great depth about this trend.
Decline in FDI to India
India saw a big drop in FDI. Inflows dropped from $49 billion the previous year to $28
billion in 2023, a 43% drop. India’s place in the world for FDI receipts dropped from eighth
in 2022 to fifteenth in 2023 because of this change. Indian projects are still the most
popular places for foreign project financing and new construction, even though the

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country’s economy is weakening.

What are the Causes of FDI Decline?
The general drop in FDI in 2023, according to UNCTAD, was caused by multinational
companies (MNCs) being more careful. Uncertain global growth prospects, geopolitical
tensions, economic fragmentation, strict industrial policies, and the ongoing
diversification of supply lines are some of the main things that are causing this. These
things have made people less likely to invest and made it harder for money to flow freely
between countries.
Sector-Specific Impacts
The drop in FDI has had different effects on different industries. There was a 23% drop in
international project finance, which is important for infrastructure, and a 46% drop in
cross-border mergers and acquisitions. This last trend is especially important because
mergers and acquisitions are key for FDI in emerging countries like India. FDI to poor
countries has dropped by 7% to $867 billion, but the effects have been different in
different areas. For more specifics, FDI to developing Asia dropped by 8%, reaching $4
billion. An unusual drop in FDI in China stands out, as do related trends in West and
Central Asia.
Top 10 FDI Recipient Countries in 2023
Rank in the world
Country’s name FDI received (in Billion US dollars)
(2023)
1 United States of America 311
2 China 163
3 Singapore 160
4 Hong Kong (China) 113
5 Brazil 66
6 Canada 50
7 France 42
8 Germany 37
9 Mexico 36
10 Spain 36
15 India 28
About UNCTAD
The United Nations Trade and Development (UNCTAD) was founded in 1964 and given a
new name in 2004. It is an official UN body. UNCTAD is an organization based in Geneva,
Switzerland, whose goal is to promote trade, investment, and growth in developing
countries. Its annual reports give lawmakers and investors around the world important
information about trade and investment trends in different regions and around the
world.[no_toc]

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67th Global Environment Facility Council

Published On Jun 22, 2024

The 67th meeting of the Global Environment Facility concluded on June 20, 2024, resulting
in significant financial commitments. A total of $736.4 million was approved to support 34
nature conservation and renewal projects globally.
Allocation of Funding
Many types of projects were supported by the money that was given out, including:
19 projects got help from the GEF Trust Fund.
Three projects got help from the newly created Global Biodiversity Framework Fund
(GBFF).
The Least Developed Countries Fund (LDCF) generously gave money to twelve
projects.
Money for one project was given to the Multi-Trust Fund. A project using a mix of
different types of equity also got support.
Key Projects and Objectives
The GBFF gave $37.8 million to improve the management of protected areas in Brazil and
Mexico, which is one of the most important projects. The goal of this project is to protect
more than 30 million hectares of land and sea, and it includes helping protection efforts
led by indigenous people. There are a few important areas that the GEF Trust Fund is
focused on
Heavy businesses like cement, textiles, and glass are being worked on in Bolivia and
Brazil to cut down on pollution.
Two important projects are being funded in India:
1. A $6.7 million project to improve the protection of biodiversity and grow protected
places that is in line with the Kunming-Montreal Global Biodiversity Framework.
2. A $10.7 million plan to protect marshes, forests, and grasslands that are important
for migrating birds along the Central Asian Flyway. The GEF also supports projects in
Argentina and Central Asia that aim to improve the management of protected areas
and stop the loss of wildlife. In Namibia, the Game Product Trust Fund aims to make
protected areas more financially stable.
About Global Environment Facility (GEF)
Funding Mechanism and Reach: The Global Environment Facility (GEF), established
in 1991, serves as a primary funding mechanism for global environmental initiatives,
supporting projects in over 170 countries. It has allocated $21.7 billion in grants and
mobilized an additional $117 billion in co-financing for diverse projects.
Collaborative Partnerships: GEF is unique in bringing together 183 countries in
partnership with international institutions, civil society, and the private sector. This
collaborative approach improves the effectiveness and reach of its environmental
initiatives.
Support for International Conventions: GEF assists countries in meeting

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international environmental obligations under conventions such as the Convention

on Biological Diversity and the Stockholm Convention on Persistent Organic
Pollutants. Additionally, it manages the Least Developed Countries Fund and the
Special Climate Change Fund to address urgent environmental challenges.
[no_toc]
Indian Post Office Act, 1898
Published On Jun 21, 2024

The Indian Post Office Act of 1898 was thrown out on June 18, when the Post Office Act
was signed into law. This major change to the law is meant to bring India’s postal services
up to date and fit the country’s current social and security situation. It goes beyond just
delivering mail and includes several services that help citizens.
Key Provisions of the New Act
The new law makes several important changes:
Interception Powers: Section 9 of the Act gives the Center the power to stop, open,
or hold mail under certain circumstances, such as when there is a threat to state
security, public order, or a violation of the law. This aligns with the rules that were in
place before the 1898 Act, but it has been expanded to fit modern needs.
Exemption from Liability: Like the old law, Section 10 of the new law protects the
Post Office and its employees from liability for losses, misdelivery, or damage, as
long as certain conditions are met.
Regulation of Private Courier Services: This differs from previous policies, the Act
officially regulates private courier services, moving away from the state’s former
position as the only authority on mail delivery.
Removal of Outdated Penalties and Exclusivities
The new law gets rid of some of the fines and special rights that were in the old law:
Loss of the Center’s Exclusive Right: The Act officially ends the government’s sole
right to deliver letters, recognizing that private delivery services have become more
popular.
Getting rid of some crimes: In the 1898 Act, there were crimes linked to dishonesty
and fraud by Post Office employees. These crimes are no longer there at all.
Implications for the Future
There is no doubt that India’s new Post Office Act is a step toward better regulating mail
and courier services. However, there is still a lot of disagreement about what this means
for privacy rights and the balance of power in the government. As these rules go into
force, it will be clear how the Act changes the way India Post works and how it affects the
postal system as a whole.[no_toc]
ADB Approves $170 Million for India's Health System Preparedness
Published On Jun 20, 2024

The Asian Development Bank (ADB) recently gave India a big loan of USD 170 million,
which is about Rs 1,418 crore. The loan is meant to improve India’s healthcare system.

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People in the country are getting this cash help to make them better prepared and faster
to respond to future pandemics.
Objectives of the ADB Loan
The recently approved funding is in line with India’s National Health Policy 2017, which
aims to make sure that all people can get good healthcare. The loan is labeled as policy-
based, which means it will fix problems with policy frameworks, laws, and governmental
governance, which will help move the goal of universal healthcare coverage forward.
Strengthening Health Surveillance and Response
One important way the loan will be used is to improve disease monitoring systems across
the country. The program will set up a network of labs that will work together to keep an
eye on infectious diseases. This network will connect cities, states, and unions, making it
much easier for the country to keep an eye on and quickly act to public health threats.
Improving Data Systems and Health Care Governance
The money will help build strong data systems that are needed to keep an eye on and
coordinate national health programs, especially those that help poor people, women, and
other vulnerable groups. There will also be improvements to how India’s “One Health”
system is run and coordinated. This plan involves many areas and is meant to fully deal
with the fear of new infectious diseases.
Support for Health Professionals and Regulatory Reforms
Some of the ADB’s money will be used to help change policies that will make sure there
are enough skilled and qualified people working in healthcare. Laws will be put in place as
part of these changes to keep education, services, and professional behavior of healthcare
workers like nurses, midwives, and doctors up to high standards. As part of the initiative,
health management teams will be sent to different states to improve public health duties
and service delivery.[no_toc]
Nvidia Becomes the World's Most Valuable Company
Published On Jun 19, 2024

Nvidia is a well-known technology company that makes graphics processing units (GPUs).
They recently did something very impressive by becoming the most valuable company in
the world. This new development is a big deal in the tech business; Nvidia has now
surpassed tech giants like Microsoft and Apple.
Recent Context and Market Surge
Nvidia’s market value reached an all-time high of $3.326 trillion on June 18, when its stock
price went up by 3.2% and reached $135.21 per share. This big rise in value happened
after Nvidia passed Apple and became the second most valuable company a few days
before. Nvidia’s shares have gone up a huge 173% over the year, doing much better than
other tech companies like Microsoft. This sudden rise is mostly because of the high
demand for Nvidia’s high-end chips, which are currently hard to find.
Impact of AI and Competition Among Tech Giants
Nvidia’s great market performance is due in large part to its leading position in the

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artificial intelligence (AI) field. Nvidia’s GPUs are very important for AI technologies, which
puts the company in the middle of a race between the biggest tech companies. Big
companies like Microsoft, Meta Platforms, and Alphabet (Google’s parent company) are all
working to improve their AI computer skills so they can lead this new field.
Stock Market Dynamics and Investor Appeal
On June 18, over $103 billion was added to the market value of Nvidia’s stock, making it
the most valuable stock in history. A ten-for-one stock split by Nvidia on June 7 made the
company even more appealing to individual buyers. This strategic move made the shares
more appealing and cheap for small investors, making it easier for more people to invest
in this high-value stock. Analysts like Sam North from eToro say that these kinds of splits
are very good for small buyers because they make buying shares easier.
Rapid Market Value Increase
The market value of Nvidia has gone up quickly and significantly. In just nine months, the
market value of the company went from $1 trillion to $2 trillion. It reached this point in
February. The price then went through the roof and reached $3 trillion in just over three
months, showing that the value was rising at a faster rate and that investors were
confident in Nvidia’s products.[no_toc]
RBI Awarded "Risk Manager of the Year 2024"
Published On Jun 17, 2024

In the year 2024, the Reserve Bank of India (RBI) was presented with the “Risk Manager of
the Year Award” by Central Banking, a distinguished organization that is headquartered in
London, United Kingdom. This honor emphasizes the efforts that the Reserve Bank of
India (RBI) has made to strengthen its risk management policies and its essential role in
ensuring the stability of India’s financial ecosystem.
Recognition at the Central Banking Awards
At a ceremony held in London, the award was handed to Mr. Manoranjan Mishra, who
serves as the Executive Director of the Reserve Bank of India (RBI). He accepted the honor
on behalf of the organization. Central Banking praised the Reserve Bank of India (RBI) for
the tremendous gains it has made in risk culture and awareness, which has established a
standard for other central banks throughout the world.
Advancements in Risk Management
There have been significant advancements made in the way that the Reserve Bank of India
(RBI) approaches risk management, particularly through the incorporation of cutting-edge
technology such as Artificial Intelligence (AI) and Machine Learning (ML). The analytical
capabilities and decision-making procedures inside the bank have been improved as a
result of the utilization of these technologies in a variety of sectors, such as supervision,
risk management, and infrastructure.
Challenges and Considerations
While the adoption of AI and ML has provided numerous benefits, the RBI has also
acknowledged potential risks associated with over-dependence on such technologies.

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These include the challenge of widespread implementation and the latent risks that may
manifest in unforeseen ways, similar to the delayed economic impacts triggered by
extreme weather or other climate-related events.
About Reserve Bank of India
Establishment and Nationalization: The Reserve Bank of India (RBI) was
established on April 1, 1935, under the Reserve Bank of India Act, 1934. Originally
privately owned, it was nationalized on January 1, 1949, to serve the nation’s
economic interests more effectively.
Inception and Headquarters: RBI was conceptualized based on the
recommendations of the Hilton Young Commission. Its first office was inaugurated
in Kolkata, but the headquarters were later moved to Mumbai in 1937.
Logo and Currency Issuance: RBI’s logo, inspired by the East India Company
Double Mohur, features a lion and palm tree. The bank holds the responsibility of
issuing banknotes and controlling the issuance and supply of the Indian rupee.
Regulatory and Development Roles: RBI regulates the country’s financial system,
manages foreign exchange, and serves as a banker to the government and other
banks. It initiated the Lead Bank Scheme in 1969 to expand banking services in rural
areas, and economic development across India.
[no_toc]
Top Indian Firms Gain ₹85,582 Crore in Market Valuation
Published On Jun 17, 2024

The prices of some of the biggest companies on the Bombay Stock Exchange (BSE)
changed a lot last week. The market showed a strong upward trend, which led to a rise in
market value of ₹85,582.21 crore for five of the ten most valuable companies. The BSE
Sensex went up by 299.41 points, or 0.39 percent, over the week, reaching an all-time high
of 77,145.46 on June 13th. Positive changes in several heavyweight stocks helped this rise
happen.
Top Gainers
The Life Insurance Corporation of India (LIC) observed the most substantial increase
in market valuation, rising by ₹46,425.48 crore to reach a total of ₹6,74,877.25 crore.
HDFC Bank’s market capitalization grew by ₹18,639.61 crore, achieving a new
valuation of ₹12,14,965.13 crore.
Reliance Industries saw an addition of ₹10,216.41 crore to its market value, elevating
its worth to ₹19,98,957.88 crore.
The State Bank of India enhanced its market cap by ₹9,192.35 crore, while Bharti
Airtel’s market capitalization increased by ₹1,108.36 crore.
Top Decliners
Tata Consultancy Services (TCS) experienced a significant drop in market valuation,
decreasing by ₹22,052.24 crore.
Hindustan Unilever saw a notable decline in its market valuation, falling by

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₹22,885.02 crore.
Both Infosys and ICICI Bank faced significant reductions in their market valuations,
contributing to the overall downtrend among major firms.
The combined decrease in market valuation for these five companies—TCS,
Hindustan Unilever, Infosys, and ICICI Bank—total ₹84,704.81 crore.
Market Capitalisation Rankings
Even though prices changed, Reliance Industries stayed the most valuable business. It was
closely followed by TCS, HDFC Bank, and other companies in a list of the ten largest
companies in the world by market value. This sudden change in the values of companies
shows how active and always changing the Indian stock markets are, which are a
reflection of larger economic trends and investor opinion.[no_toc]
World Bank Supports Chennai's Sustainable Waste Management Goals
Published On Jun 12, 2024

The Greater Chennai Corporation (GCC), with help from the World Bank, wants to improve
the way it handles trash so that it can set up a system that will last until 2026 or 2027.
These attempts are mostly about stopping people from throwing trash at Kodungaiyur,
which is a big dump in the city.
Strategic Meetings and Goals
A recent meeting between the World Bank, the GCC, and state officials ended with a
detailed talk of how to make solid waste management more strategic. Setting Zero Waste
as the main goal and finally stopping the use of another major dumpsite, Perungudi, after
the success at Kodungaiyur is the main goal.
World Bank’s Role and Study
It is planned that the World Bank will improve the city’s solid waste management methods
over the next 20 years, not just in Chennai but all over the state. A big part of this project
is a full study that will look at how garbage is currently handled and come up with ideas
for how the city’s waste management policies could be improved.
Implementation of Recycling and Waste Reduction Strategies
After the study is over, the GCC will put in place a number of new rules that will aim to
boost recycling and cut down on waste sent to landfills. Some of these are changes to the
law that the Chennai Corporation Council should pass soon. The main goal of these
changes is to create a circular economy that has less of an effect on the world and uses
fewer resources. The project also looks at administrative problems, like hiring levels, that
get in the way of good city management in all 15 zones of Chennai. GCC wants to improve
general civic response and efficiency by tackling these basic problems. This will help make
waste management even better. Overall, these joint efforts by the World Bank and Greater
Chennai Corporation show that they are serious about turning Chennai into a model of
environmentally friendly trash management.[no_toc]
How Will Pakistan Resolve Tax Policy Disagreements?
Published On Jun 10, 2024

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Pakistan and the International Monetary Fund (IMF) have been unable to agree on any
changes to suggested tax policies during recent talks. The main points of disagreement
are combining the income tax rates for paid and non-salaried people and putting a single
18% sales tax on food and medical supplies.
Key Issues in Negotiations
The differences are mostly about a few very important things:
Income Tax for Salaried and Non-Salaried Individuals: The IMF wants to raise the
maximum income tax rate from 35% to 45% for people with monthly incomes over
Pakistani Rs 467,000. This would affect both salaried and non-salaried individuals.
This suggestion goes against Pakistan’s plan to keep the top rate at 35% for salaried
workers while potentially agreeing to the higher rate for non-salaried people.
Taxation of Exporters: Everyone agrees that exporters should pay more taxes
because they have been charged less than other groups in the past.
Sales Tax on Essentials: The government doesn’t like the idea of putting a standard
18% sales tax on essentials like fertilizers, pesticides, seeds, and healthcare goods
because it could cause inflation and public backlash.
Implications for Individuals and Sectors
The suggested changes to taxes will have a big effect on many areas:
For groups with middle and low incomes: People with lower incomes might have
to pay higher taxes under the new tax slabs, which would hurt people in the middle
of the income range the most.
Health and Agriculture Sectors: Putting an 18% sales tax on important farming
supplies and medical items could make them more expensive to make and use.
Salaried Individuals: If the income tax rates are changed, salaried people may have
to pay a lot more in taxes, which means they will need a big raise in pay to cover the
extra cost.
Negotiation Outlook and Economic Pressures
Since things are stuck at this point, the IMF has asked Pakistan to come up with other
ideas that might lower the taxes that people have to pay. Soon, there will be another
round of talks, and both sides are hoping to find a middle ground. Pakistan is under a lot
of pressure to get a new loan from the IMF so that it doesn’t fail. They are hoping to finish
the talks before the end of the fiscal year.[no_toc]
India Among Top Five Global Destinations for Real Estate Investment
Published On Jun 08, 2024

India has become one of the best places to invest in real estate across borders. By March
quarter, it was ranked among the top five places in the world to buy land and build on it.
According to a study by Colliers, about 55% of these inflows came from foreign investors.
Most of these purchases (73%) are in assets that are ready to use, with a clear preference
for properties that are already making money.

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Investment Focus and Trends

Foreign investments in Indian real estate reached $3.6 billion in 2023, making up 67% of
all the money that came in. Most of it went into office spaces that are either ready to be
used or almost finished, which is great for investors because they can start making money
right away. The strong investment trend toward high-quality, long-lasting office assets in
2024 kept this trend going. There are also more and more different kinds of real estate
investments, such as logistics, alternative assets, residential, and real estate loans.
Institutional Investor Preferences
Institutional investors usually choose finished and rented homes that give them steady
returns. These kinds of investments are liked because they have lower risk and are more
likely to follow the rules. They are also easier to get out of. However, now that Grade A
projects are fully funded, there is a move toward working together with local developers
on new projects in a range of areas, such as office, residential, and industrial places.
Economic Drivers and Market Optimism
Global capital investors continue to be drawn to India by its steady economic growth,
strong demand, and generally good business climate compared to other countries. The
fact that investments are made at different stages, such as platform formation, land
purchase, and construction, shows that a lot of people are optimistic about India’s
economic future.
The Rise of Institutional Investments
Investors like PAG Credit and Markets, Invanhoe Cambridge, Logos, Alta Capital, and
CPPIB have been very active in the Indian market. They have put money into residential,
warehouse, and other types of assets. Also, investments in land for residential projects
have gone up over the last two years, and major investments in residential real estate will
go up by 20% just in 2023.
More About Investment inflows
Foreign Direct Investment (FDI) flows into poor countries often outpace flows into
developed countries, which shows that the economy is changing.
China got more FDI than the U.S. in 2020, beating out the U.S.
Global FDI dropped by 42% in 2020 because of the COVID-19 pandemic. This was the
lowest amount since the 1990s.
Foreign direct investment (FDI) is going into services more and more, not established
industries like mining.
FDI flows into small island emerging states are much lower than they should be.
“Greenfield investments” make up a big part of FDI, which helps new businesses start
up.
Digitization and the tech industry are becoming the main areas that benefit from
FDI.
India’s “Make in India” program greatly increased FDI, making it one of the best
places for FDI to go.

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When Brazil made it easier for foreigners to invest in insurance services, more
money came into that area.
The move toward “de-globalization” could cause FDI patterns to change or go down
in the future.
[no_toc]
India Exim Bank Opens Nairobi Office to Boost East Africa Trade
Published On Jun 08, 2024

The Export-Import Bank of India (India Exim Bank) recently opened its East Africa
Representative Office in Nairobi, Kenya. This is part of a plan to grow its business around
the world. The goal of this project is to improve India’s trade and business ties with East
Africa, which is known for having a lot of resources and young people.
Growth in Trade Between India and East Africa
India and East Africa have done a lot more business with each other over the past ten
years. From USD 9.7 billion in 2013 to USD 12.9 billion in 2022, trade in goods grew
quickly. India’s exports to East Africa went from USD 8.6 billion in 2013 to USD 9.4 billion in
2022, which shows that trade ties are still getting better.
Role and Strategic Activities of India Exim Bank
The India Exim Bank is the country’s main bank. Its job is to finance, facilitate, and
promote India’s foreign trade and investments. As part of India’s economic diplomacy, one
important part of its job is to help make policy and provide money for projects that will be
exported. The Bank has offices in Abidjan, Côte d’Ivoire, and Johannesburg, South Africa.
These strategic locations in important African cities show that the Bank is committed to
building economic ties with the region.
Facilitating Socio-Economic Growth in Africa
Over 200 Lines of Credit worth more than USD 12 billion have been given by India Exim
Bank on behalf of the Indian Government to 42 African countries. These credits have
made big differences in these countries’ social and economic progress by making
infrastructure, jobs, farming, industry, and promoting long-term growth better. In
addition, these programs create big chances for businesses and small and medium-sized
businesses in both Africa and India, helping to create and keep jobs in many areas.
More About Export-Import Bank of India
Establishment and Role: The Export-Import Bank of India (Exim Bank) was
established in 1982 under the Export-Import Bank of India Act. It was created to
promote Indian exports by providing financial assistance. Exim Bank is
headquartered in Mumbai and serves as the principal financial institution for
coordinating the financing of exports and imports.
Financial Services and Products: Exim Bank provides loans to Indian exporters and
foreign governments for infrastructure projects and facilitates buyer’s credit. It
extends lines of credit to enable foreign governments to finance imports from India,
thereby supporting international trade. Important financial products include Buyer’s

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Credit under the National Export Insurance Account (NEIA), Overseas Investment
Finance, and Export Credit.
Impact and Objectives: Exim Bank plays a crucial role in promoting cross-border
trade and investments. By financing infrastructure projects abroad, it helps Indian
companies expand their international presence. Through its various financial
instruments, Exim Bank strengthens India’s international trade relations and
economic cooperation with other countries.
[no_toc]
Sebi Wins 'Best Business Regulator' Award in Asia Pacific
Published On Jun 08, 2024

According to The Asian Banker, the Securities and Exchange Board of India (SEBI) was
recently given the “Best Conduct of Business Regulator” award for the Asia-Pacific area.
This award, which was given in an event in Hong Kong, shows how important SEBI has
been in improving the rules that govern Indian stock markets. Kamlesh Chandra
Varshney, a Permanent Member of SEBI, accepted the award on behalf of the
organization.
Enhancement of Regulatory Framework
SEBI has taken several important steps that have made the Indian stock market much
more efficient and trustworthy. The introduction of the T+1 settlement method is one of
the important projects. This method, which began to be put in place gradually in 2021 and
was fully operational by January 2023, has greatly cut the time it takes for investors to get
to their money after trading, which has increased market liquidity and efficiency.
Impact of SEBI’s Innovations
The Asian Banker pointed out that SEBI has not only made the market more efficient
through strict enforcement and new regulatory practices, but it has also made sure that
customers are treated fairly and kept the market’s integrity strong. These efforts have
raised the bar for doing business in India’s financial markets, making them more in line
with best practices around the world.
What is T+1 settlement?
The T+1 settlement cycle is the process by which trades in assets are settled one business
day after they happen. The goal of this method is to make markets work better and lower
the risks that come with trade settlements. Key global markets, including the U.S., came
up with T+1, which will require a lot less capital to clear trades. The U.S. plans to fully
adopt it in 2024. In addition, it could affect liquidity by making banking processes go
faster. In the past, the change from T+2 to T+1 has been made possible by improvements
in digital technology and changes to the rules to allow for faster payments. The change is
part of a larger effort to improve the infrastructure of financial markets in reaction to
more trading and the need for more resilience.
More About Sebi
Establishment and Statutory Powers: SEBI was established in 1988 as a non-

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statutory body without any statutory powers. On January 30, 1992, SEBI was given
statutory power through the SEBI Act. It is headquartered in Mumbai, SEBI has
Northern, Eastern, Southern, and Western Regional Offices.
Functions and Objectives: SEBI was created to protect investors and ensure fair
practices in the securities market. It develops regulations for the securities market to
maintain market integrity and transparency. In 1992, SEBI introduced the concept of
registered Foreign Institutional Investors (FIIs) to attract foreign funds into the
Indian markets.
Significant Actions and Developments: In 2010, SEBI banned 14 life insurance
companies from issuing unit-linked insurance plans (ULIPs), categorizing them as
mutual fund products. SEBI continuously works towards improving market
infrastructure, implementing best practices, and growth in the securities market.
[no_toc]
India's Foreign Exchange Reserves Hit Record $651.5 Billion
Published On Jun 08, 2024

With $651.5 billion in foreign exchange reserves by May 31, 2024, India had the highest
amount of foreign exchange reserves ever. Positive changes in trade, remittances, and
foreign investments have helped India’s external industry reach a strong point.
Factors Contributing to Strong Foreign Exchange Reserves
Several things have helped India’s foreign exchange reserves grow:
Exports of Software and Other Services: The Reserve Bank of India (RBI) says that
service exports, especially software, business services, and travel, have grown a lot.
After growing by 4.2% in the fourth quarter of 2023–24, net service exports went up
by 9.3% over the same quarter.
Global Capability Centers (GCCs): The RBI Governor talked about how important
GCCs are and how they have helped software and business services exports a lot.
GCC countries have increased the amount of foreign currency coming into India. It is
expected to rise from 1,580 in 2022–23 to about 1,900 by 2024–25.
Remittances: India will receive 15.2% of all remittances in 2024, making it the
biggest receiver of remittances in the world. Remittances came in more than $100
billion in the first nine months of FY 2023–24.
Trade and Current Account Deficit: The trade deficit is lower because of strong
growth in services and strong remittance transfers. This makes the current account
deficit less severe. It is expected that the current account deficit will stay within
manageable levels for the whole fiscal year 2024–25.
Investment Flows and External Financing
Foreign Portfolio Investment (FPI): India received a net of $41.6 billion in FPI in
2023–24. But things have changed in the first few months of 2024–25. On 05 June,
2024, net losses were $5 billion.
Foreign Direct Investment (FDI): Gross FDI entries stayed strong through 2023–24,

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even though net FDI slowed down. India also stayed on top as the best place in the
Asia-Pacific region for new foreign direct investment (FDI).
External Commercial Borrowings (ECBs) and Non-Resident savings: Both ECBs
and non-resident savings came in more than they did the year before. Between 2023
and 2024, the number of ECB deals grew by a large amount.
[no_toc]
Nvidia Surpasses Apple With $3 Trillion Market Cap
Published On Jun 08, 2024

Nvidia, a major chipmaker for artificial intelligence based in Santa Clara, recently reached
a major milestone by raising its market value to $3.019 trillion, which is higher than
Apple’s $2.99 trillion and just below Microsoft’s $3.15 trillion. Nvidia is now the second-
largest publicly owned company in the US. It joins Apple and Microsoft as the only
companies in the world to have a market value of $3 trillion. The price of Nvidia stock went
up a lot—by 5.2% to about $1,224.4 per share. This helped major markets like the S&P 500
and Nasdaq reach new highs.
Nvidia’s Progress in 2023
Nvidia has led the rise in artificial intelligence on Wall Street. Its stock price has gone up
147% this year, after going up 239% in 2023. Nvidia’s strong place in the AI semiconductor
market—where it makes about 70% of all sales—is driving this amazing growth. This is a
lot more than Apple’s small 1.7% gain during the same period.
Introduction of New AI Chip Platforms
CEO of Nvidia said that the company will release Rubin, its most powerful AI chip platform,
in 2026. Blackwell was called the “world’s most powerful chip” when it came out in March
2023, and this new platform will take its place. These changes show that Nvidia is still
dedicated to new ideas and is the leader in offering cutting-edge technology for data
centers and other uses. Nvidia has announced a big 10-for-1 stock split that will make its
shares easier for individual investors to buy. This will make the company even more
appealing to investors. This move should make it easier for people to start investing in
Nvidia. On June 10, shares that have been split will begin selling.
More About Nvidia
Nvidia was started by Jensen Huang, Chris Malachowsky, and Curtis Priem in 1993. It
started out as a company that made computer chips. Not many people know this, but
Nvidia came up with the term GPU (Graphics Processing Unit) when the GeForce 256 came
out in 1999. The name of the business comes from combining the Latin word for envy,
“invidia,” with the word for “video.” It’s interesting that Nvidia went beyond graphics and
into AI, making important advances like the CUDA architecture in 2006, which made
parallel computing better. GeForce Now and the Shield line from Nvidia have also
changed the way people play games. When they tried to buy ARM Holdings in 2021, it
failed because of problems with the government. Nvidia has taken environmental action
that is unique in its business. This is shown by its AI for Climate initiative, which aims to

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use AI to help solve climate problems.[no_toc]

Peru Adopts India's UPI System for Instant Digital Payments
Published On Jun 06, 2024

The latest deal between NPCI International Payments Limited (NIPL) and the Central
Reserve Bank of Peru (BCRP) is a big step forward for digital payment systems around the
world. The goal of this partnership is to set up a system in Peru that works like the Unified
Payments Interface (UPI). This would make Peru the first country in South America to use
NPCI’s technology. This is part of NPCI’s larger plan to launch UPI in many parts of the
world.
The Reason behind the Peru Initiative
Initial Agreement: The deal with BCRP is the second in a series of foreign
partnerships that NIPL has started. The first was with the Bank of Namibia. The main
goal of these deals is to help other countries improve their digital payment systems
by copying India’s successful UPI system.
Objectives of the Collaboration:The collaboration’s main goals are to strengthen
Peru’s financial system, boost economic growth, help more people get access to
financial services, and make deals more open and less expensive. The project also
works on making sure that the payment systems can change with the times and
meet the needs of the market.
How it Works: The agreement says that the BCRP will make it easier for people and
companies in Peru to send money instantly. This is meant to make purchases easier
and get more people in Peru who don’t have bank accounts to use digital payments.
This will improve their access to financial services and their ability to participate in
the economy.
Support and Influence: The Reserve Bank of India (RBI) has been very helpful with
this foreign project. RBI’s support shows how important this partnership is, not just
for Peru but for the acceptance and use of UPI-like systems around the world.
Global Impact and Future Plans
Along with the NPCI, the RBI wants to introduce the UPI system in 20 countries by
2028–29. This is on top of the implementations that have already happened in France, Sri
Lanka, and the UAE. The plan to grow comes at a time when UPI is handling more and
more transactions in India. In May 2022, a record 14.04 billion transactions were made
through UPI. It is hoped that this global effort will bring all payment systems up to date,
make them safer, and add new digital payment options.
Facts about Unified Payments Interface (UPI)
The Unified Payments Interface (UPI), which was created by India’s National
Payments Corporation in 2016, lets mobile devices send and receive money instantly
between banks.
UPI is one of a kind among global payment systems because it lets you connect more
than one bank account to a single mobile app.

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It has many banking services, such as two-factor authentication with just one click.
Surprisingly, UPI doesn’t need much data and can work with slow internet, which
makes it easier for people to use.
It’s crazy that this system handled 6.57 billion deals just in July 2023.
UPI can also be used in other countries, like the UAE and Bhutan, which increases its
financial reach.
Its ease of use and effectiveness have made it possible for people from all walks of
life in India to access banking services.
[no_toc]
Nvidia Stock Hits Record High, Approaches Apple's Value
Published On May 31, 2024

New Rise in the Price of Nvidia’s Stock market value rose sharply on May 28, when its
stocks hit a new high. They are now worth almost as much as Apple’s. The value of the
company’s shares went up by 6%, making the stock price $1,128 and the market
capitalization of the company about $2.8 trillion.
Factors Contributing to Nvidia’s Rally
The main reasons for this big rise in Nvidia’s stock prices are the company’s optimistic
sales forecast for the second quarter and its announcement of a stock split. Investors are
very interested in Nvidia’s work in artificial intelligence (AI), which is a field that is growing
very quickly. This is because Nvidia has strong financial performance and a strategic place
in the technology market.
AI and Tech Industry Impact
Nvidia is currently very successful because big tech companies like Alphabet, Microsoft,
and Amazon are buying more and more of its high-performance microchips for their data
centres. These chips are necessary to run complex AI programs, which is why Nvidia’s
sales in this area have grown five times.
Comparison with Apple and Microsoft
While Nvidia is growing quickly, Apple has been having a rough time, with stock values
going down slightly because iPhone sales are down and competition in China is high. But
Microsoft is still the most valuable company in the world, thanks in large part to how
quickly and well it added AI to its cloud services. Apple’s later adoption of AI technology,
on the other hand, shows that the company might not be able to keep its marketplace.
Future Prospects: Nvidia vs. Apple
A big change is coming to the tech world as Nvidia gets closer to passing Apple in market
value. With Nvidia’s clear growth trend and Apple’s recent performance issues, investors
and people in the business world are eagerly waiting to see if Nvidia will pass Apple and
become the third most valuable company in the world, narrowly behind Microsoft.[no_toc]
RBI Releases Final Guidelines for Fintech SRO
Published On May 31, 2024

The Reserve Bank of India (RBI) finished the rules for setting up a self-regulatory

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organization (SRO) for the growing fintech industry in 2023. This is better than the draft
guidelines that were first suggested in January, after hearing from people in the business.
The RBI wants these SROs to be places where different players in the fintech industry,
besides banks, can go to be regulated and represented.
Who Does it Cover?
The SRO is meant to cover a wide range of fintech activities, such as digital loans, peer-to-
peer (P2P) services, and account aggregators. It’s important to note that these SROs urge
both regulated and mostly unregulated fintech companies to join. The goal is to include a
wide range of industry players to make sure that there is full oversight and inclusion.
Mandates and Functions of the SRO
The RBI has set out some important duties for the SRO, such as representing the fintech
sector, keeping data safe, following development principles, settling disputes, making
sure members follow the rules, and staying separate from outside influences. In addition,
the SRO is in charge of controlling risks that could hurt users, like fraud, mis-selling, and
transactions that aren’t supposed to happen.
Enforcement and Monitoring
The guidelines stress how important it is for the SRO to effectively oversee and police the
rules. This means coming up with basic rules and guidelines for behaviour, as well as
strong ways to keep an eye on people and make sure they follow these rules. The SROs
should also have ways for people to file complaints. This will help customers and fintech
companies talk to each other and work out their problems.
Multiple SROs and Membership
The RBI has allowed the creation of various SROs because it understands that the Indian
fintech landscape is diverse. Every financial company needs to be a part of at least one
SRO. Because of this, fintech companies can pick an SRO that fits their goals and business
model well. But SROs that can’t get enough members could lose their status from the
government.[no_toc]
ADB Commits $2.6 Billion to India for Various Projects
Published On May 30, 2024

ADB, the Asian Development Bank, promised to give a large amount of money (2.6 billion
USD) to India in 2023 for several development projects. As part of this promise, USD 23.53
million in professional help and USD 4.1 million in grants were also given under the
sovereign portfolio. In addition, over the past year, the bank has given more than USD 1
billion to projects in the private sector.
Areas of Focus
The ADB’s funding is meant to help with several important growth projects, including:
Improving the connectivity of infrastructure
Supporting the growth of industry corridors
Pushing for changes in the power sector, especially those that involve renewable
energy

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Making India more climate-resilient

Specific Projects Funded
Significant allocations were made to various impactful projects:
Additional funding for India’s national industrial corridor development program,
which seeks to enhance the country’s manufacturing competitiveness.
Support for urban reforms and power sector reforms at the state level.
Expansion of urban services in states like Uttarakhand, Rajasthan, and Tripura.
Improvement in road connectivity in Bihar and Madhya Pradesh
Expansion of the Delhi-Meerut rapid rail transit corridor.
Development of horticulture in Himachal Pradesh.
Strategic Focus on State Development
The ADB uses a different approach for each state depending on its level of development.
For example, in low-income states, the focus is on providing basic services, improving
critical infrastructure, and building stronger institutions through sovereign operations. In
more developed states, the focus is on transformational projects that include non-
sovereign operations and policy and knowledge advice.[no_toc]
RBI Governor Unveils Key Financial Initiatives for 2023
Published On May 29, 2024

To make financial services easier to get to and better at what they do, RBI Governor
Shaktikanta Das recently launched three big projects: the Pravaah site, the Retail Direct
Mobile App, and a FinTech Repository. These plans came from what the RBI said in its
Development and Regulatory Policies reports in 2023 and 2024.
About Pravaah Portal
The Pravaaah portal was created to make the regulatory process easier and faster. It lets
people and businesses apply for different types of regulatory licenses online. The Reserve
Bank of India hopes that this project will make the approval processes work better. Its
goal is to make things easier to use and more efficient by streamlining processes within
the application system.
About Retail Direct Mobile App
Additionally, the Retail Direct Mobile app was released to make investing in government
bonds easier for regular people. With this app, investors should be able to easily buy and
handle their government securities (G-Secs). Investing in government bonds is usually a
difficult process, but this app makes it easier.
About FinTech Repository
The final initiative, the FinTech Repository, is meant to be a complete database of
information about Indian FinTech companies. Its goal is to help people understand and
regulate a field that is changing quickly. By providing important data that can be used for
regulatory reasons, the repository will help policymakers make smart, useful decisions.
The RBI wants these projects to support more transparency, make it easier for people to
get financial services, and improve regulatory frameworks so they can keep up with

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changes in technology.[no_toc]
Four European Union Banks Seek RBI Nod for Clearing Model
Published On May 28, 2024

Four big European banks—Credit Agricole, Societe Generale, Deutsche Bank, and BNP
Paribas—are asking the Reserve Bank of India (RBI) to let them use a third-party clearing
model to keep buying and selling Indian government bonds and derivatives. As a result of
problems with audit and inspection rights, the European Securities and Markets Authority
(ESMA) took away the Clearing Corporation of India’s (CCIL) recognition.
Impasse Over Audit Oversight Rights
The conflict started when the RBI wouldn’t let the ESMA audit and check the CCIL, which is
a key part of India’s financial system for government bonds and derivatives. Because of
this refusal, the ESMA stopped recognizing the CCIL in October 2022. After October 2024,
European banks will not be able to do business with it.
The Proposed Third-Party Transaction Model
To get around the impasse, the European banks involved suggested a third-party plan in
which transactions could be settled through Indian banks such as the State Bank of India
and ICICI Bank. This agreement would help keep foreign capital coming in and make sure
that European rules are followed.
Challenges and Client Confidentiality Concerns
One of the biggest problems with using the third-party approach is keeping client
information personal. Safekeeping private data and securities for clients is what European
banks do. Transferring clearing to a third-party bank could mean sharing client
information, which raises worries about privacy and data security.
Facts about the European Securities and Markets Authority (ESMA):
ESMA was established in 2011.
ESMA plays a crucial role in the architecture of financial regulation within the EU,
working alongside other European Supervisory Authorities (ESAs) like the European
Banking Authority (EBA) and the European Insurance and Occupational Pensions
Authority (EIOPA), as well as the European Systemic Risk Board (ESRB).
Its main goals are to safeguard the stability of the European Union’s financial system,
ensure the integrity, transparency, efficiency, and orderly functioning of securities
markets, and improve investor protection.
ESMA develops a single rulebook for EU financial markets, ensuring consistent
regulation and supervision.
It monitors and assesses risks to investors, markets, and financial stability.
It contributes to the development of common market standards and practices,
enhancing cross-border cooperation and coordination.
[no_toc]
Adani Ports Becomes First Adani Group Company to Join Sensex
Published On May 28, 2024

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The Adani Group’s Adani Ports and Special Economic Zone Ltd (APSEZ) will be added to the
Sensex on the Bombay Stock Exchange (BSE) on June 24. With this important step forward,
APSEZ is the first company under the Adani Group’s control to join the Sensex, replacing
the technology firm Wipro. This happened after APSEZ and another Adani company, Adani
Enterprises, were added to the National Stock Exchange’s (NSE) Nifty index. Adani prices
went up after a rough time when they dropped a lot because of claims by Hindenburg
Research that there were financial problems, which Adani has denied.
Criteria for Sensex Inclusion
There are strict rules about which companies can be in the Sensex. This is done to make
sure that only financially stable and easily sold companies are in the index. Some of the
things that are looked at are having been listed on the BSE for at least six months, trading
regularly, and having a swap contract. A company must also be in the top 75 in terms of
market capitalization and have a free-float market capitalization of at least 0.50%.
Companies are looked at every six months, in June and December, to see if they meet the
qualifying requirements for reconstitution.
About Adani Enterprises
Gautam Adani started Adani Enterprises in 1988 as a business that traded goods. It paved
the way for the Adani Group to grow into the energy, logistics, and agribusiness
industries. The company launched India’s first private rail and first supercritical power
plant. Building the Carmichael Coal Mine in Australia and the Mundra Port in India are two
important projects. It is working on a lot of important infrastructure projects of 2023, like
building the Navi Mumbai International Airport. Notably, in 2022, Forbes ranked Gautam
Adani as the third richest person in the world.[no_toc]
Zig- Zimbabwe Rolls Out World Newest and Gold-Backed Currency
Published On May 27, 2024

Zimbabwe recently tried to get their economy back on track, which is why they made a
new currency in April called the Zimbabwe Gold (ZiG). As a result of major economic
problems and the failure of earlier currencies, this is the sixth attempt in 15 years to
create a national currency.
Background and Deployment
When the Zimbabwe dollar fell apart in 2009, during a time of hyperinflation that was
believed to be 5 billion percent, a 100-trillion Zimbabwe dollar bill was printed. Extreme
steps like these showed how bad Zimbabwe’s economy was, which led to a system of
multiple currencies with the U.S. dollar as the main currency. The government tried to fix
these problems and make the local currency more stable by introducing the gold-backed
ZiG. They hoped it would boost trust more than the ones that came before it.
Public Promotion and Response
When it came out, the ZiG was promoted in a number of ways, such as through music and
direct talks with government leaders and the party in power, ZANU-PF. Even with all of this
advertising, the new currency had a hard time getting accepted, just like other currencies

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before it. People were still skeptical because of ongoing economic problems and a desire
for the more stable U.S. dollar, which is still used across the country for big purchases like
rent and school fees.
Measures to Enforce Usage
In a controversial move, the government has made people use ZiG by making it harder to
trade currencies on the black market. Currency dealers who were dealing at rates higher
than the official exchange were arrested by the authorities. This caused a lot of trouble
and criticism from the economic community about how harsh these measures were. Even
though people who trade in illegal currencies are jailed or fined a lot, most economists
agree that these actions alone are not enough to restore trust in the new currency.
Continuing Challenges
In a controversial move, the government has made people use ZiG by making it harder to
trade currencies on the black market. Currency dealers who were dealing at rates higher
than the official exchange were arrested by the authorities. This caused a lot of trouble
and criticism from the economic community about how harsh these measures were. Even
though people who trade in illegal currencies are jailed or fined a lot, most economists
agree that these actions alone are not enough to restore trust in the new
currency.[no_toc]
Centre Sanctions Rs 21,253 Crore to Tackle Kerala's Crisis
Published On May 27, 2024

The Indian Central Government gave the state of Kerala a lot of money at the end of May
2024 to help it deal with its economic problems. The Minister of State for Electronics and
Information Technology told everyone about this change in a public post on platform X.
Up until December 2024, the Centre has let Kerala borrow up to Rs 21,253 crores.
Details of the Economic Crisis in Kerala
Kerala has been having a lot of problems with its economy, like not paying its workers on
time and stopping progress on many state projects. Employees of the Kerala State Road
Transport Corporation (KSRTC) were hit hard by the economic downturn, which messed up
their pay streams.
Objectives of the Financial Assistance
The approved borrowings are meant to boost Kerala’s economy by making sure that
salaries and pensions are paid on time, that important infrastructure projects like the
Coastal Protection and the Mini Harbour Project are completed, and that marine activities
are supported. Also, the process of hiring Coastal Police Officers (CPO) will be sped up,
which will make the coast safer.
Expected Impacts and Government Accountability
The money that was sent and the permission to borrow more is supposed to help Kerala’s
economy get better. People are hopeful that Kerala’s economic stability and growth will
get a lot better in the future now that the state government is focusing on dealing with
these important problems and getting help from the national government.

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More About Economic Crisis in Kerala

Kerala had problems with its economy, especially from 2017 to 2018, when the state’s GDP
growth was only 7.18 percent. Because about 36.3% of the state’s income comes from
remittances, it is vulnerable to changes in the world economy. More than $4.4 billion was
lost in damage from the 2018 floods, which mostly affected crops and tourism. Even
though Kerala had a lot of good social measures, its unemployment rate of 9.4% in
2017-18 was much higher than the national average. It hit 31.4% of GSDP in 2020, which
shows that the state’s finances are still under a lot of stress due to high welfare spending
and slow industrial growth.[no_toc]
Sebi Cracks Down on Gaming Apps Involved in Virtual Trading
Published On May 27, 2024

The Securities and Exchange Board of India (Sebi) is keeping a closer eye on fantasy
games and virtual trading platforms that use real share prices to mimic stock trading. This
action comes after a lot of like-minded apps became famous because more and more
regular people are interested in trading stocks.
Regulatory Crackdown
Sebi has told stock exchanges and depositories to stop giving third-party apps that help
with virtual trading access to real-time price data. The goal of this directive is to stop
people from using data for financial gain on sites that aren’t regulated. Sebi says that it is
okay to use this data for educational and fun purposes, but it is illegal to link cash rewards
to the outcomes of virtual portfolios, which is similar to “dabba trading.”
Legal and Financial Implications
The exchanges make money by processing trades and selling data feeds. Stock traders get
these feeds for free so they can help their clients trade. Sebi’s rules now say that sharing
market data for things like schooling has to be put off for at least one day to stop it from
being misused. Stock exchanges have also been told to change their legal deals to stop
anyone from using live data feeds without permission.
Facts about the Securities and Exchange Board of India (Sebi)
Formation and Regulatory Authority
The Securities and Exchange Board of India (SEBI) was established on April 12, 1988,
and gained statutory powers on January 30, 1992, through the SEBI Act of 1992.
SEBI is headquartered in Mumbai and is responsible for regulating the securities
market in India.
It responds to the needs of three primary groups: issuers of securities, investors, and
market intermediaries.
Innovations and Market Improvements
In 2000, SEBI made Internet dealing possible, which made the securities market
easier to get to and more efficient.
Paper shares were thrown out when demat (dematerialized) trading started. This cut
down on fraud by a large amount and made dealing easier.

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SEBI set up the National Institute of Securities Markets (NISM) in Mumbai so that
people who work in the market could get training and licensing.
Investor Protection and Enforcement
SEBI improved safety for investors by creating the SCORES platform, which lets
investors file complaints and keep track of them online.
The group has the power to do raids and investigations to make sure people follow
the rules and protect the purity of the market.
These steps help make the stock market safer and more open, which boosts investor
trust.
More About virtual stock trading games
People can practice investing in fake money in real-time markets with virtual stock trading
games, which are also sometimes called “paper trading apps.” This way, they can improve
their skills and strategy without risking real money. Investopedia Simulator and other
platforms are like real trade platforms. There is also a virtual stock market on
MarketWatch. Some models, like Wall Street Survivor, let you learn while competing.
Virtual trading lets you try out different ways to spend, like day trading or long-term
strategies. A lot of companies, offer simulators to help clients learn how to use trading
tools. The game-like features in these apps make it easier to understand complicated
financial ideas in a fun way.[no_toc]
Myanmar Junta Revives $3.6 Billion Chinese-Backed Dam Project
Published On May 25, 2024

With help from China, Myanmar’s junta is starting up again the $3.6 billion Myitsone dam
project that was put on hold before. This move is a big change in policy from when it was
first put on hold in 2011 because of strong public opposition. The project is on the
Ayeyarwady river in northern Kachin state. It includes plans for a 6,000-megawatt dam
that will provide about 90% of the power needed by China.
Composition and Role of the New Leading Group
The project has been given to a new “leading group” with 11 members, one of whom is the
deputy minister for energy. Their duties include study, technical solutions, and public
relations. They were announced on April 24 and made public later. The Yunnan
International Power Investment Company of the Chinese State Power Investment
Corporation (SPIC) works with this group.
Environmental and Social Concerns
The dam’s construction has been criticized for potentially causing extensive environmental
damage and providing minimal local benefits. A 2015 environmental study paid for by the
Myanmar government said that the dam shouldn’t be built because it could change the
flow of the river in big ways. In 2018, the World Wide Fund for Nature (WWF) pointed out
that about two-thirds of Myanmar’s people live in the Ayeyarwady area, which shows how
big the problem could be.

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Geopolitical and Internal Conflict Dimensions

Tensions are still high between the Kachin Independence Army (KIA) and the Myanmar
troops at the project site in Kachin state. The political arm of the KIA is going to talk about
the junta’s choice to bring the dam back to life. The project is also very important from a
global point of view because China has a strategic interest in the area as part of its Belt
and Road Initiative. But since the military coup in 2021, the region’s security has been
harmed, which slows down project progress.
China’s Role and the Peace Process
China is still a very important player in the peace process in northern Myanmar. It has
helped make past agreements possible and will continue to do so. China recently helped
set up talks between Myanmar’s military and ethnic armed groups, but there hasn’t been
much progress recorded. China has said again that it wants to see peace in the area and
emphasized that it has both military and humanitarian interests in the area. The return of
the Myitsone dam project is a complicated mix of local opposition, environmental
concerns, and major geopolitical interests. It shows how hard it is to balance growth with
sustainability and security in the area.
More About Myitsone dam
Project Overview and Suspension: The Mali and Nmai rivers meet at the planned
Myitsone Dam. This is the source of the Irrawaddy River in Myanmar, and the project
is mostly paid for by Chinese money. It was built to make 6,000 MW of electricity,
mostly for use in China. Despite this, the project was put on hold in 2011 because of
strong resistance from many groups.
Environmental and Social Concerns: The dam put at risk the area’s wildlife and the
rice-growing Irrawaddy Delta, which is very important for Myanmar’s food security.
People were worried about the possibility of earthquakes because the dam was built
close to the Sagaing fault line. Thousands of people would have had to move
because of the project, which would have messed up their neighborhoods and ways
of making a living.
Current Status and Controversies: In 2021, the Myanmar military suggested that
the Myitsone Dam project might start up again, which caused more protests against
the dam. The possible restart of the project has started new arguments about how it
will affect the environment, society, and the economy, and many people are still
strongly against it.
[no_toc]
India's Market Capitalization Crosses $5 Trillion Milestone
Published On May 24, 2024

The market value of all companies traded on the Bombay Stock Exchange (BSE) in India
recently passed the $5 trillion mark, which is a big deal for the market. India is now the
fifth country in the world, after the U.S., China, Japan, and Hong Kong, to hit this level of
market value. The value of the market was $5.05 trillion. The sharp rise in value is mostly

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due to the great performance of bank and car stocks, which pushed the benchmark
indices to all-time highs.
Market-Cap to GDP Ratio
The Market Cap to GDP number, which is a key measure, went up to 1.42 times (or 142%
of India’s GDP). This important economic sign, which is sometimes called the “Warren
Buffet indicator,” helps figure out whether the stock market is overvalued or undervalued
compared to the general output of the economy. According to the current percentage, the
market may be stretched, but it also shows that the economy is doing well.
Historical Growth of Market Capitalisation
India’s market capitalization has grown in a very interesting way:
In May 2007, it hit $1 trillion for the first time.
In July 2017, it topped $2 trillion.
In May 2021, the $3 trillion mark was broken.
On November 29, 2018, it went over $4 trillion.
It is now over $5 trillion.
Economic Indicators and Forecast
Analysts say that the high Market-Cap to GDP ratio is due to strong macroeconomic
fundamentals and a setting that is good for economic growth. Based on predictions for
the next few years, the ratio may return to normal at 126% (1.26 times), which means that
the market may continue to trade at higher valuations because the economy as a whole is
doing well.
Market Valuation Parameters
The Market-Cap to GDP ratio has shown that a market is undervalued when it is between
50% and 75%, and it is at good value when it is between 75% and 100%. If the percentage
goes above 100%, the market may be overvalued, but this depends on other factors. The
fact that this ratio is currently above 100% shows how excited the market is and how
private capital spending cycles might push it even higher shortly.
More About BSE-listed stocks
History and Location:
Established at 1875, making it Asia’s oldest stock exchange.
Located at Dalal Street, Mumbai.
Market and Listings:
Over 5000 companies listed, one of the world’s largest in terms of listed entities.
Surpassed $3 trillion as of 2023.
Key Features and Innovations:
Benchmark index introduced in 1986, comprising 30 stocks from various sectors.
Introduced BOLT (BSE On-Line Trading) in 1995.
Launched India’s first ETF (Exchange Traded Funds) and stock futures.
Most trading is conducted in large cap stocks, which are generally more liquid.
Includes BSE SmallCap, BSE MidCap, and BSE 100.

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[no_toc]
RBI Approves Highest-Ever Dividend Of Rs 2.11 Lakh Crore for Government
Published On May 23, 2024

A record amount of Rs 2.11 lakh crore has been approved by the Central Board of the
Reserve Bank of India (RBI) as the surplus payment to the Central Government for the
accounting year 2023–24. This large transfer goes above and beyond what was planned in
the budget and what the market thought would happen. It sets a new standard for the
RBI’s financial payments to the national treasury.
Comparison with Previous Years and Market Expectations
Based on past data and what the market thought would happen, the surplus shift for this
time period was thought to be around Rs 1 lakh crore to Rs 1.1 lakh crore. So, the allowed
amount is twice what was expected and a big jump from previous years. The transfers of
Rs 87,416 crore in 2022–23 and Rs 30,307 crore in 2021–22 show how different the two
amounts are. This sudden rise in surplus transfers will ease fiscal pressures, which could
lower the fiscal deficit for FY 2025 by around 0.2% of GDP. According to the Interim
Budget, the government wants to cut the budget deficit from 5.8% of GDP in FY24 to 5.1%
of GDP in FY25. This new development helps them reach their lofty goal.
Factors Contributing to Surplus Increase
Several things have led to this huge cash gain. The RBI’s income from variable repo rate
(VRR) sales has gone up because more people are taking part, even though banks are
having trouble getting cash. The RBI’s earnings have also been helped by higher interest
rates on both domestic and foreign securities and gains from revaluing foreign exchange
funds.
More About RBI surplus transfer
RBI’s Surplus Transfer to the Government: The Reserve Bank of India (RBI)
annually transfers its surplus, which is essentially the central bank’s profits, to the
government. This surplus primarily comes from the interest on loans and securities
held by the RBI.
Bimal Jalan Committee’s Recommendations: The distribution of the surplus
follows the guidelines set by the Bimal Jalan Committee, which reviewed and revised
the Economic Capital Framework in 2019. The committee’s recommendations aim to
balance the RBI’s financial resilience with the fiscal needs of the government.
Impact on Fiscal Deficit: The RBI’s decision on surplus transfer significantly affects
the fiscal deficit of the Indian government. For instance, in the fiscal year 2021-22,
the RBI announced a surplus transfer of Rs 30,307 crore, a notable decrease from
the Rs 99,122 crore transferred the previous year. This variability is influenced by
changes in the RBI’s income and its monetary policy operations.
More About variable repo rate (VRR) auctions
Central banks, like the Reserve Bank of India (RBI), use variable repo rate (VRR) bids to
control the amount of cash in the banking system. The repo rate, which is the rate at

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which private banks borrow money from the central bank, can change during these
auctions, which is different from fixed-rate repos. VRRs were created as a way to adjust
the amount of cash in circulation. They help absorb or inject short-term excess liquidity,
keep money market rates in line with policy rates, and are an important part of how banks
handle overnight rates. The times between VRR sales can also be changed, from one night
to 28 days, giving you more control over your liquidity. Since 2019, these bids have been
used more often to improve the efficiency of money transfers and market
changes.[no_toc]
Bank of Maharashtra Leads in FY24 Business Growth
Published On May 23, 2024

The Bank of Maharashtra grew much faster than other public sector banks in India in the
fiscal year 2024. The total domestic business growth for this Pune-based institution was
15.94%, which was higher than the 13.12% growth for the State Bank of India.
Growth in Deposits and Advances
With a growth rate of 15.66%, the Bank of Maharashtra came in first for deposit growth in
FY24. It grew its deposits faster than SBI, Bank of India, and Canara Bank, putting it ahead
of the other 12 public sector banks in terms of deposit growth. In the same way, UCO
Bank had the highest growth in loan advances (16.38%), but the Bank of Maharashtra was
right behind it with 16.30%. With a 16.26% rise, SBI also showed strong gains in loan
growth. The bank’s achievement in Current Account Savings Account (CASA) deposits,
where it had the highest growth rate of all public sector banks (52.73%) by the end of
March 2024, is a key part of its success.
Asset Quality
Notably, the Bank of Maharashtra kept its assets in good shape, with the sector’s lowest
gross non-performing assets (NPAs) rate of 1.88%. Its net NPAs were also very low, at
0.2%, which is a strong sign of its financial health and business efficiency. Based on this
knowledge, the Bank of Maharashtra has done incredibly well in many areas, making it a
leading institution in India’s public sector banking.
More About Bank of Maharashtra
Establishment and Nationalization
The Bank of Maharashtra was founded on September 16, 1935, in Pune,
Maharashtra, India. It was first called “Bank of Maharashtra Ltd.”
In 1969, it became a nationalized bank during the nationalization drive led by Prime
Minister Indira Gandhi.
Unique among many Indian banks, it continues to maintain its headquarters in Pune,
reflecting its regional origins.
Commitment to Agriculture
The bank introduced the “Surya Krishi Card,” a credit card made just for farmers.
This card underscores the bank’s dedication to agricultural development and support
for the farming community.

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By providing targeted financial products, the bank demonstrates its commitment to

addressing the needs of the agricultural sector.
Technological Advancements
The bank’s logo, which is a regular person stepping forward in orange and deep
blue, stands for growth and new ideas.
In 2004, the Bank of Maharashtra became the first Indian bank to fully computerize
all its branches.
This important milestone made the bank’s operations much more efficient and its
customer service much better.
[no_toc]
RBI Scrutinizes Gold Loan Norms To Tighten Grip
Published On May 20, 2024

The Reserve Bank of India (RBI) made it harder for Non-Banking Financial Companies
(NBFCs) to do business by telling them in March that they had to follow the rules for gold
loans carefully. As a result of breaking these rules, IIFL Finance was not allowed to give
out any more gold loans.
What is the Reasons for the Reinforcement of Gold Loan Norms?
The RBI made its choice after discovering that some NBFCs had broken the rules by
overvaluing collateral and not following loan-to-value ratios. These violations show that
NBFCs are putting too much emphasis on growth over caution, which could lead to
widespread problems as the sector grows. The RBI says: –
The loan amount can’t be more than 75% of the gold’s value. This ensures that
lenders have extra money in case the borrower doesn’t repay the loan.
No more than ₹20,000 can be given out in cash; any more money must be sent
through a bank transfer.
Gold that has been repossessed must be auctioned off clearly so that borrowers can
see the lots.
Implications of Increased RBI Scrutiny for NBFCs
By making it harder to get cash right away, the tighter control should:
Make NBFC gold loans less appealing.
Slow down the rapid growth of loan books by making sure that loan-to-value limits
are strictly followed.
Raise the costs of doing business for NBFCs because gold bids need to be more open
and clearly marked.
More About RBI’s gold loan norms
Under the gold loan, the Reserve Bank of India (RBI) says that commercial banks can give
up to 90% of the value of gold jewellery starting in 2021. This is up from 75% before. This
higher Loan to Value ratio (LTV) will last until March 31, 2022, and is meant to ease the
stress on the economy caused by COVID-19. These loans have lower interest rates than
personal loans because they are backed by something. In order to get a loan, the gold

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must be between 18 and 24 karats pure. Gold loans can be paid back over a period of a
few months to a few years, based on the lender’s rules. Non-banking financial companies
(NBFCs) also offer gold loans, but their interest rates and LTV ratios are not the same as
banks’.
What is the loan-to-value ratio?
The loan-to-value ratio (LTV) compares the loan amount to the value of the item being
bought. This ratio is often used in mortgage lending. Lenders like LTVs that are 80% or
less to lower their risk. If the LTV ratio is high, you may need to get extra mortgage
insurance. Interest rates can be changed by the LTV. Usually, smaller LTVs mean better
rates. For borrowing, the LTV is a key factor in figuring out who is eligible. After 2008,
mortgage rules put more emphasis on LTV analysis to stop lenders from giving out too
many risky loans. By raising the property’s value, home improvements can change the
LTV. When figuring out the LTV, closing costs are not included in the property
value.[no_toc]
EPFO Introduces Auto-Mode for Education, Marriage Claims
Published On May 16, 2024

The Employees’ Provident Fund Organization (EPFO) has made it easier to settle claims for
loans used for things like schooling, marriage, and housing by adding an “auto-mode
settlement” process. By streamlining the process and reducing the need for human input,
this new idea marks a move toward faster and more efficient handling.
What are the Benefits of Auto-Mode Settlement?
Here are the most important things to know about the auto-mode payment system:
Quick Processing: The time it takes to settle claims has been cut down by a lot, and
processing is now normally done in 3–4 days.
No Human Intervention: The system takes care of the whole process automatically,
from beginning to end, so there are no delays caused by people having to do it by
hand.
Increased Limits: The highest amount that can be claimed in advance has been
raised to Rs. 100,000, which means that more money can be given to people who
need it.
How Auto-Mode work?
Here are the most important things you need to know about the auto-mode settlement
method and its wider reach:
System for automating IT: The auto-mode settlement is based on an automated IT
system that handles claims as long as all the requirements are met, such as meeting the
Know Your Customer (KYC) requirements, being eligible, and having correct bank
validation.
Coverage Has Grown: The system’s coverage has recently grown to include:
Education Advances (para 68K)
Marriage Advances (para 68K)

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Housing Advances (para 68B)

Process Simplified: Because the system handles claims automatically, no one has to do
anything by hand, which speeds up the process and cuts down on delays.
Eligibility Check: The system checks that the people who are eligible for each type of
increase meet the requirements. This makes sure that only those who are eligible get the
benefits.
Bank Validation: Making sure the banks are correct is a very important part of the
process that makes sure the money goes to the right accounts.
KYC Compliance: Following the rules for “Know Your Customer” (KYC) is required and
helps stop false claims and keep things honest.
What are the Rules for EPF Advances?
Here are the most important things you need to know about EPFO rules for different types
of advances:
Medical Advance (Rule 68J):
This can be used at any time while a member.
The most that can be taken out is either six months’ basic pay plus dearness
allowance or the member’s collected share with interest, whichever is less.
Education and Marriage Advance (Rule 68K):
After 7 years of service, this offer is yours.
Allows you to take out up to 50% of your accumulated share with interest
Up to three times can be used.
Housing Advance (Rule 68B):
After 5 years of service, this offer is yours.
Withdrawal limits depend on the reason (buying, building, or fixing a house, for
example).
Using different caps for each reason based on certain criteria
Application Process
Members who want to take money out of their EPF can do so online through the Member
e-Sewa portal. The required step is to file Form 31 online. After that, the auto-mode
system quickly checks for and processes valid claims, making it easier for members to pay
for important life events or needs.[no_toc]
New AIS Feature Enhances Income Tax Confirmation Process
Published On May 15, 2024

The Annual Information Statement (AIS) now has a useful feature added by the Income
Tax Department that lets taxpayers see the confirmation state of their financial data. The
goal of this change is to make tax filing more open and accurate.
Understanding the Annual Information Statement (AIS)
The American Income Statement (AIS) is a detailed record of all of a taxpayer’s financial
transactions during the tax year. It includes information from many sources, such as
banks and mutual funds. According to the Income Tax Department, it gives a thorough

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picture of a person’s business activities.

New Feature Explained
Confirmed: This state means that the tax department has checked the information
carefully and agreed with it. Entries that are marked as “Confirmed” are thought to
be correct, and the taxpayer does not need to do anything else about them.
Partially Accepted: This state means that some parts of the information have been
checked out and approved, but other parts may still need more information or
clarification. Taxpayers should carefully read over these records to see what other
information might be needed to fully settle any problems.
Rejected: It means that the tax office has not accepted the information. These
records need to be fixed, and taxpayers are responsible for updating or changing the
wrong information. People who owe money on taxes should take care of these
mistakes right away to avoid problems with their tax returns.
How to Accessing AIS?
The compliance page on the e-filing website (www.incometax.gov.in) lets all registered
income taxpayers get to their AIS. Taxpayers can look over and make changes to their
recorded financial transactions here.
What are the Benefits for Taxpayers?
Transparency:
Taxpayers can now directly check that the financial information the tax office has on
file about them is correct.
This makes it easier to check that the data used for tax estimates and assessments is
correct, which lowers the chance of mistakes.
Proactive Correction:
With the updated AIS, taxpayers can find mistakes in their financial records and fix
them before they happen.
Taxpayers can avoid problems during the tax scoring process by taking care of these
issues before they file their tax returns.
Reduced Workload:
When you have better knowledge and can make changes ahead of time, it’s much
less likely that the tax department will ask questions or do an audit.
This makes it easier to file taxes and also makes things easier for both taxpayers and
tax officials in terms of paperwork.
More About Annual Information Statement (AIS)
India’s Income Tax Department created the Annual Information Statement (AIS), which is a
better version of Form 26AS and shows a lot more about a taxpayer’s financial
transactions. AIS has extra data like interest, dividends, trades in securities, and purchases
of mutual funds. It makes voluntary cooperation easier and makes sure that taxes are
clear. You can get to the statement through the Income Tax Department’s e-filing site.
Taxpayers can give feedback if there are problems. AIS is updated often to include the

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most recent information from financial companies. It uses information from property and
share deals to accurately figure out tax liabilities. This helps keep income tax returns as
error-free as possible.[no_toc]
India's April Retail Inflation Eases Marginally to 4.83%
Published On May 15, 2024

The Consumer Price Index (CPI) showed that retail inflation in India slowed down a bit in
April. The rate went down a little from 4.85% in March to 4.83%, according to the National
Statistical Office. Some of this small drop was caused by lower prices in the fuel and light
sectors.
Components of Inflation and Economic Factors
However, food prices went up from 8.52% to 8.7%, while core prices stayed low. Food and
core inflation are still not rising at the same rate, which makes things more difficult for the
Monetary Policy Committee (MPC), especially since real interest rates are seen as
“excessive.” Foods like cereals, meat, fish, eggs, veggies, and pulses all had persistently
high inflation rates. These stresses might be balanced out by the hope of a good rainy
season, which could increase crop yields and keep prices stable.
Non-Food Inflation and Monetary Responses
Consumer prices stayed the same for things other than food, like clothes, shoes, home
goods, services, and fun and games. Still, the persistently high food inflation creates a lot
of unpredictability, which affects the MPC’s policy choices. The governor of the Reserve
Bank of India (RBI), Shaktikanta Das, said that people should be careful about how food
prices change, implying that these changes might not have short-term effects.
What is the Consumer Price Index?
A weighted average market basket of goods and services that families buy is used to
figure out changes in the Consumer Price Index (CPI). It’s a statistical guess based on the
prices of a group of typical things whose prices are gathered regularly. For each group of
goods and services, sub-indices and sub-sub-indices are calculated, and these are then
added together to make the total index. CPI changes are used to figure out how much
prices have changed because of the cost of living, to change salaries, wages, and benefits,
to keep prices stable, and to deflate money amounts to show how much they’ve changed
in real terms. In most countries, the CPI is used to measure inflation as well as to match
pensions and pay to prices. One of the most-watched pieces of national economic data is
this measure.
About Monetary Policy Committee
Formation and Purpose: To control inflation, the Monetary Policy Committee (MPC)
sets interest rates in a country.
Historical Context: The MPC was created in 1997 in the UK and is very important in
making economic decisions.
Composition: The MPC is usually made up of nine people, including the governor of
the central bank, two deputy governors, the top economist, and foreign experts.

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Operating Frequency: The group meets about every six weeks to look at interest
rates and set them.
Decision-Making Process: The MPC makes decisions by voting on what the majority
of its members think.
Transparency Measures: To keep things open, the minutes of the MPC meetings
are made public, which include a record of what was talked about and why choices
were made the way they were.
Global Examples: Similar to the UK, India set up its MPC in 2016 with the stated goal
of keeping annual inflation at 4%, with a tolerance range of +/- 2%.
Economic Impact: The MPC’s choices have a big effect on important economic
factors like monetary policy, interest rates, and employment rates.
Role in Economic Stability: Monetary policy committees (MPCs) play a key role in
keeping the economy stable by adapting monetary policies to the prevailing
economic circumstances.
[no_toc]
TCS Launches AI Center of Excellence in Paris
Published On May 14, 2024

Tata Consultancy Services Ltd (TCS), India’s largest IT services exporter, has announced
plans to establish a unique ‘human-centric’ artificial intelligence (AI) Centre of Excellence
(CoE) in Paris. The announcement is as per strategic expansion of TCS into European
markets, focusing on innovative AI applications.
Objective of the AI CoE
The new AI Centre in Paris aims to explore how AI can enhance business efficiencies and
tackle societal issues. TCS stated that the Centre will concentrate on three main areas:
1. Brain-computer interface technology.
2. Infusing empathy into machine interactions.
3. Expanding the use of AI in the fields of arts and culture.
Strategic Location in France
The AI CoE will be located in La Defense, Paris, known for its vibrant economic and cultural
activities. This location choice leverages France’s renowned expertise in design and
engineering, benefiting from its rich culture reflected in various sectors including fashion
and luxury. The Paris Centre will become one of the seven ‘TCS PacePorts’ globally, which
serve as hubs for innovation.
Partnerships and Talent Development
As per TCS, this Centre will not only focus on technology but also on nurturing talent. The
approach includes deepening partnerships with local universities, startups, and research
centres. Moreover, TCS is planning to hire new talent and offer internships and
collaborative projects with educational institutions to support this initiative.
More About Brain-Computer Interface
Brain-computer interfaces (BCIs) enable direct communication between the brain and

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external devices, often used for assisting the disabled. Recent developments allow control
of devices through neural implants interpreting brain signals. Innovations like the
Stentrode, implantable without open-brain surgery, are pioneering less invasive methods.
BCIs extend to neurogaming, where players control games via cerebral activity. Research
also explores using BCIs for rehabilitation post-stroke, enhancing synaptic plasticity.
Ethical debates arise around privacy and mental integrity, accentuating the necessity for
robust security measures to protect brain data from unauthorized access.
More About Human-centric AI
Human-centric AI prioritizes ethical standards and user welfare, focusing on fairness,
transparency, and accountability. This approach ensures AI systems enhance human
capabilities without replacing them, maintaining human oversight. Ethical guidelines vary
globally; however, initiatives like the EU’s AI Act exemplify regulation attempts.
AI’s interpretability remains crucial for trust, ensuring algorithms can explain decisions in
human-understandable terms. Key applications include personalized education and
healthcare, ensuring adaptations to individual needs. Universal guidelines are still under
development to address bias and discrimination, aiming for equitable tech
advancements.[no_toc]
PM Gati Shakti Boosts Social Security, Expands Health Infrastructure
Published On May 13, 2024

Recently, the Ministry of Labour and Employment joined the PM Gati Shakti site.
Strengthening health infrastructure and social security measures in industrial places and
Special Economic Zones (SEZs) is the main goal. According to Sumita Dawra, secretary of
the ministry, this project aims to use a lot of building data from the port to improve
workers’ social security in these growing areas.
Initial Steps and Geotagging Initiatives
The ministry started by geotagging about 1.3 million buildings that were part of the
Employees’ Provident Fund Organization (EPFO) and about 1.5 million buildings that were
part of the Employees’ State Insurance Corporation (ESIC). This included 104 ESIC
hospitals. This geotagging is an important step in figuring out how to improve service
coverage and see what areas are already covered.
Expanding Coverage in SEZs
Exploring 268 Special Economic Zones (SEZs) through the Gati Shakti platform as part of
strategic growth will give many workers in these zones access to social security programs.
By doing this, the safety net for workers will be strengthened, providing more coverage
and benefits.
Integration with Other Schemes
The government wants to add more programs to the PM Gati Shakti portal in the future.
With a focus on services for people with disabilities, this includes National Career Services
centers. The growth plan for these centres helps the most vulnerable groups and is open
to everyone.

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Addressing Challenges for Pensioners

Fixing the problems that seniors have with sending in their digital life awards is a real
benefit of this project. Using geotagging to find pensioners, the ministry hopes to make
concentration maps on the site that will help medical groups like the ESIC better target
and serve their patients.
About PM Gati Shakti portal
The Indian government launched the PM Gati Shakti Portal, which is a game-changing
project that aims to create a comprehensive plan for building up infrastructure all over the
country. This website is a complete GIS-based platform that brings together planned and
current infrastructure projects from many different fields, including shipping, aviation,
roads, and railways. The main goal of the Gati Shakti Portal is to make sure that projects
are planned and carried out in a coordinated way, to cut down on delays in
implementation, and to boost economic growth by making it easier for people and things
to move around.
About special economic zones (SEZs)
Special Economic Zones, or SEZs, are places within a country that are set apart and have
different economic rules than other areas. These areas were made to bring in foreign
direct investment (FDI), boost growth based on exports, and make jobs available. In SEZs,
businesses can get tax breaks, lower tariffs, and easier regulatory processes, among other
things. SEZs usually focus on certain types of businesses, like manufacturing, technology,
or banking. They are very important to a country’s economic plan because they improve
trade and industrial growth around the world. But SEZs are also criticized for pushing out
local people and making the economy less fair.[no_toc]
ICMR Warns: Packaged Food Labels May Mislead Consumers
Published On May 12, 2024

The Indian Council of Medical Research (ICMR), through its Hyderabad-based National
Institute of Nutrition (NIN) has recently highlighted potential misleading claims on
packaged food labels. The ICMR’s dietary guidelines issued in May 2024 warn consumers
that labels designed to attract attention may not accurately reflect the healthiness of the
products.
Misleading Claims
The guidelines point out specific examples where food labelling can be deceptive as
follows:
Sugar-Free Products: Often perceived as healthy, these products might be high in
fats, hidden sugars like maltitol and fructose, and refined cereals, potentially leading
to high caloric intake.
Packed Fruit Juices: Labels such as ‘real fruit or fruit juice’ can be misleading when
the product contains as little as 10% actual fruit pulp, with the remainder being
water, sugar, and other additives.
Whole Grain Misrepresentation: A ‘made with whole grain’ label does not

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necessarily mean the product isn’t heavily processed or that whole grains are the
primary ingredient.
Organic Labels: For a product to be labelled as 100% organic, it must be free from
artificial preservatives, flavours, colours, pesticides, and chemical fertilizers. This
label is substantiated by the ‘Jaivik Bharat’ logo approved by the Food Safety and
Standard Authority of India (FSSAI).
Label Reading and Nutritional Claims
The guidelines urge consumers to meticulously read labels, focusing on:
Ingredients List: To verify the actual content against claims.
Nutrition Information: Checking serving sizes and nutritional facts such as calories,
fats, sugars, and other nutrients based on the serving size mentioned.
Certifications and Logos: Understanding what each certification or logo (like ‘Jaivik
Bharat’) actually represents.
Expiry Dates: Noting manufacture and use-by dates to ensure product freshness
and safety.
Consumer Advisory
Despite rigorous regulations by FSSAI, the risk of misinterpretation remains. Consumers
are advised to critically assess food labels to make informed dietary choices. Awareness is
crucial, and understanding the distinction between ‘nutrition facts’ and ‘nutrition claims’
can guide healthier decisions. The dietary guidelines also emphasize the importance of
understanding serving sizes and the actual amount per serving detailed on the label, to
accurately calculate intake and manage dietary needs.
Notes on ICMR
The Indian Council of Medical Research (ICMR) was established in 1911 as the Indian
Research Fund Association (IRFA).
ICMR’s headquarters are in New Delhi.
It operates under the Department of Health Research, Ministry of Health and Family
Welfare.
The ICMR is involved in the formulation, coordination, and promotion of biomedical
research in India.
It also manages a network of 26 national institutes addressing specific research
topics.
ICMR played a pivotal role during the COVID-19 pandemic in India, especially in
formulating testing protocols.
Notes on Food Safety and Standard Authority of India (FSSAI)
The Food Safety and Standards Authority of India (FSSAI) is a statutory body,
established under the Food Safety and Standards Act, 2006.
FSSAI is responsible for protecting and promoting public health through the
regulation and supervision of food safety in India.
The headquarters of FSSAI is in New Delhi.

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FSSAI is led by a Chairperson, who is appointed by the Central Government, and is in

a position equivalent to Secretary to Government of India.
The authority also sets guidelines for the accreditation of laboratories for food
testing.
FSSAI launched the ‘Eat Right Movement’ in 2018 to improve public health and
combat negative nutritional trends to fight lifestyle diseases.
FSSAI is also responsible for setting standards for food articles and specifying an
appropriate system of enforcing various standards.
The logo of FSSAI, which depicts a blue and orange handprint, is mandatory to be
displayed on food products along with the FSSAI license number.
[no_toc]
India's Spice Board Issues New EtO Contamination Guidelines
Published On May 11, 2024

The Spices Board of India has recently issued detailed guidelines to tackle the problem of
ethylene oxide (EtO) contamination in spices exported from India. This action was
prompted by the bans imposed by Hong Kong and Singapore on the sale of popular
Indian spice brands like MDH and Everest, after these products were found to contain the
carcinogenic chemical ethylene oxide. The contamination has raised significant quality
concerns among international buyers and has led to a mandatory recall of these products
from the market.
Use of Ethylene Oxide
Ethylene Oxide is a chemical commonly used for the sterilisation and fumigation of
agricultural products due to its effectiveness in killing bacteria, fungi, and insects.
However, due to its potential health risks, including carcinogenic effects, its presence in
food products has become highly regulated globally.
Spices Board Guidelines
To address these issues, the Spices Board’s guidelines provide a clear framework for
exporters:
1. Prohibition of EtO Use: Exporters are instructed to avoid the use of EtO across all
stages of the spice production and supply chain. This includes not only the treatment
processes but also transportation, storage, and packaging.
2. Testing and Monitoring: Regular testing for EtO contamination is mandated. This
includes checking raw materials, processing aids, and finished goods. Any instances
of contamination detected must be followed by a thorough root cause analysis to
implement effective preventive measures.
3. Alternative Sterilisation Methods: The guidelines encourage the use of alternative
sterilisation methods such as steam sterilisation, irradiation, and other approved
methods by the Food Safety and Standards Authority of India (FSSAI).
4. Critical Control Points: Exporters must identify ethylene oxide as a hazard and
incorporate critical control points within their Hazard Analysis Critical Control Points

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and Food Safety Plan.

Additional Safety Measures
The guidelines also set out additional safety measures to enhance the quality of spices:
Rejection of Contaminated Raw Materials: Spices and herbs known to contain
microbial contaminants not reducible to acceptable levels through normal
processing must be rejected.
Prevention of Cross-Contamination: Effective measures must be taken at all
processing stages to prevent cross-contamination. This includes handling and
packaging practices that protect against moisture, pest infestation, and microbial
growth.
Packaging and Transportation Requirements: The use of new, non-porous
containers for packaging, ensuring clean and dry transportation conditions, and
monitoring environmental conditions during transit to prevent contamination.
Impact on Trade
The implementation of these guidelines is critical not only for public health but also for the
economic impact it bears. In 2023-24, India’s spice exports were valued at USD 4.25 billion,
making up 12 percent of the global spice trade. The enforcement of these guidelines helps
reassure international markets of the quality and safety of Indian spices, potentially
stabilizing and increasing India’s share in the global spice market. This is especially
significant considering the competitive nature of the global spice trade, with China leading
at USD 8 billion in exports in 2023.
About Ethylene Oxide contamination
Ethylene Oxide contamination refers to the presence of ethylene oxide, a colourless gas
used primarily for sterilizing medical equipment and as a pesticide, in products or
environments where it poses health risks. Considered a potent carcinogen by agencies like
the U.S. EPA, ethylene oxide can contaminate foods, spices, or cosmetics through
fumigation or sterilization processes. Inhalation, ingestion, or skin exposure can lead to
acute symptoms such as respiratory irritation and long-term effects including leukemia
and breast cancer. This raises significant concerns about workplace safety and consumer
product standards, necessitating stringent regulation and monitoring.[no_toc]
ICMR Releases New Dietary Guidelines
Published On May 09, 2024

In response to the rising health issues related to poor dietary habits in India, the Indian
Council of Medical Research (ICMR) unveiled a comprehensive set of dietary
recommendations on May 9, 2024. These guidelines are designed to address the alarming
statistic that 56.4% of India’s disease burden is due to unhealthy eating practices.
Key Recommendations
The 148-page report produced by the National Institute of Nutrition (NIN), which is a part
of ICMR, categorically emphasizes the reduction in intake of sugars, salts, and unhealthy
fats. There are total 17 guidelines, each briefed here:

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1. Balanced Diet: Consume a nutritionally adequate diet by choosing foods wisely from
a variety of food groups to ensure balanced nutrition.
2. Pregnancy and Lactation: Pregnant and lactating women require additional
nutritious food and care to support the health of both mother and child.
3. Breastfeeding: Exclusively breastfeed infants for the first six months, then continue
breastfeeding along with complementary foods until two years of age or beyond.
4. Complementary Feeding: Introduce homemade, semi-solid complementary foods
to infants after six months of age. These foods are economical, easy to prepare, safe,
and healthy.
5. Child and Adolescent Nutrition: Ensure children above two years and adolescents
consume balanced diets to support optimal growth, development, and immune
function, both in health and illness.
6. Vegetables and Legumes: Eat plenty of vegetables, especially green leafy varieties,
to obtain essential vitamins, minerals, and protect against micronutrient deficiencies
and various diseases.
7. Healthy Fats: Use oils and fats in moderation. Choose a variety of oil seeds, nuts,
and whole grains to meet daily requirements of fats and essential fatty acids. Limit
use of refined or extracted oils.
8. Protein Quality: Obtain high-quality proteins and essential amino acids from a
variety of sources. Avoid protein supplements for building muscle mass.
9. Obesity Prevention: Adopt a healthy lifestyle to prevent abdominal obesity,
overweight, and overall obesity, as excess fat is associated with increased risk of
lifestyle diseases.
10. Physical Activity: Be physically active and exercise regularly to maintain physical
and mental fitness and promote good health.
11. Salt Intake: Restrict salt (sodium chloride) intake, as excessive consumption may
lead to hypertension, heart disease, and stroke.
12. Food Safety: Consume safe and clean foods to avoid food-borne illnesses, chronic
diseases, and malnutrition.
13. Cooking Methods: Use appropriate pre-cooking and cooking methods to ensure
healthy food preparation.
14. Hydration: Drink plenty of water to maintain good health and hydration.
15. Ultra-Processed Foods: Minimize consumption of ultra-processed foods high in fat,
sugar, and salt, as regular intake increases the risk of non-communicable diseases.
16. Elderly Nutrition: Include nutrient-rich foods in the diets of elderly individuals,
along with adequate physical activity, to support health and wellness.
17. Food Labels: Read food labels on packaged products to assess nutritional quality,
safety, and make informed choices about ingredients, contents, and shelf life.
Physical Activity and Lifestyle Changes
One of the pivotal areas of the new guidelines is the encouragement of physical activity

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alongside dietary control to combat non-communicable diseases like coronary heart

disease, hypertension, and type 2 diabetes. Regular exercise in conjunction with a
balanced diet is highlighted as a preventive tool to avert a significant number of
premature deaths.
Food Safety and Quality
The guidelines further address the importance of food safety, opting for minimally
processed foods, and understanding food labels. These additions aim to gear the Indian
population towards making informed food choices that are beneficial in the long
term.[no_toc]
Proposed Policy to Exclude Stubble Burners from MSP Benefits
Published On May 09, 2024

In 2023, the Supreme Court insisted on introducing disincentives for stubble burning,
majorly affecting the perennial problem of air pollution. Reacting to this, the Central
Government has directed a halt on Minimum Support Price (MSP) benefits to farmers who
engage in stubble burning. This decision is informed by a goal to discourage a practice
detrimental to environmental health and air quality, particularly in Northern India.
Government Initiatives and Actions
The central directive facilitates the exclusion of farmers practicing stubble burning from
receiving MSP benefits from 2024-25. This was articulated following a recommendation
from the Committee of Secretaries (CoS) in their meeting on April 10, chaired by the
Cabinet Secretary. In addition, a significant push was for the ‘red entry’ mark in farm
records, identifying and recording farmers practising stubble burning. This system was
endorsed to be streamlined using a protocol developed with the assistance of NSRC and
ISRO for accurate tractability of farm fires.
Implementation and State Involvement
To enable these new regulations, the Department of Food and Public Distribution (DoFPD)
issued communications to the chief secretaries of Punjab, Haryana, Uttar Pradesh, NCT of
Delhi, and Rajasthan. These letters, dated January 5 and 30, 2024, discuss mechanisms
both to penalize via record entries and subsequently exclude offending farmers from MSP
benefits at the next Kharif season (2024-25).
Challenges in Enforcement and Farmer Reactions
Enforcement of these measures is complex. The politically charged backdrop against
which these decisions are made involves farmer protests that previously erupted in
2020-21, specifically addressing penalties such as these. Effective management and fair
enforcement remain pivotal, with only 2.6% of cases recorded in Punjab’s farm records as
of last evaluation.
Future Outlook
With a potential increase in paddy cultivation areas in states like Punjab and Haryana from
2023 to 2024, the matter of managing stubble and effective compliance with new MSP
rules becomes even more crucial. The government continues to seek ways to enforce

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these measures more tightly and efficiently, ensuring that the efforts to tackle the stubble
burning issue do not just remain on paper but translate into visible environmental
benefits.[no_toc]
NHAI Explores New Self-Healing Road Technologies
Published On May 08, 2024

The National Highways Authority of India (NHAI) is exploring new technologies aimed at
creating pothole-free highways. This includes innovative development towards self-
healing roads, encapsulating technologies that allow the roads to repair themselves
automatically under specific conditions.
Understanding Self-Healing Road Technologies
Numerous technologies are under different stages of development for achieving self-
repairing capabilities in roads. These include:
Microencapsulation:Utilises microcapsules mixed into the asphalt that contain
healing agents. When cracks form, these capsules break and release the agent to
seal the cracks. This technology has been researched extensively by the Delft
University of Technology in the Netherlands.
Induction Heating:Involves integrating steel fibres into the asphalt mix. When
cracks form, an induction machine heats these fibres, melting the surrounding
asphalt and sealing the crack. This technology is in the testing phase in the
Netherlands and China.
Bacteria-Based Self-Healing:Uses bacteria to produce calcium carbonate, which can
seal cracks in concrete roads. This type of research is ongoing at Binghamton
University in New York.
Rejuvenator Capsules:Similar to microencapsulation, these capsules contain a
rejuvenating agent that softens the surrounding asphalt when released, thereby
sealing cracks. This technology is currently being tested on roads in Cambridgeshire,
UK.
NHAI’s Approach to Self-Healing Roads
NHAI is particularly focusing on a technology that incorporates infused bitumen and steel
fibres into the asphalt mix. This approach ensures that gaps or potholes on the road
surface can spontaneously fill and repair themselves through the combined action of the
bitumen and steel threads. This technology not only enhances road durability but also
minimises traffic disruptions caused by potholes.
Implementation Status and Future Prospects
Currently, the technology is not in use as the government intends to perform a thorough
cost-benefit analysis to ensure its effective implementation. Looking forward, these
innovative self-healing road technologies hold significant potential to make Indian roads
more durable and sustainable, with a likelihood of becoming more common in the coming
years. Researchers and road development authorities remain optimistic about their
broader adoption.

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About National Highways Authority of India (NHAI)

National Highways Authority of India (NHAI) is a statutory body established under the
Ministry of Road Transport and Highways in 1988. It is responsible for the development,
maintenance, and management of India’s national highways, overseeing around 70,000
km of roads crucial for the country’s economic integration. NHAI works through the
planning, implementing, and operation of high-quality highways and bridges. It utilizes
advanced technologies and international practices to ensure safety, reduce traffic
congestion, and improve transportation routes, playing a key role in stimulating economic
growth and regional development across India.
[no_toc]
MEIL Wins 2,000 MW Sharavathi Pumped Storage Power Project
Published On Apr 30, 2024

Megha Engineering and Infrastructure (MEIL), a Hyderabad-based infrastructure firm, has

bagged the 2,000-megawatt Sharavathi pumped storage power project in Karnataka. The
project, which is set to be the largest pump storage power generation unit in the country,
is estimated to cost over Rs 8,000 crore and aims to help Karnataka address its power
crisis.
Project Details
The Sharavathi pumped storage power project has a planned total power generation
capacity of 2,000 MW
The project will use Talakalale as the upper reservoir and Gerusoppa as the lower
dam
The estimated cost of the project is over Rs 8,000 crore
The implementation timeline for the project is five years
Significance
The Sharavathi river is a vital source of hydroelectric power in Karnataka
The pumped storage power project aims to help Karnataka solve its power crisis by
providing a flexible and adaptable solution to fluctuations in electricity demand
Pumped storage hydel power projects are preferred for their ability to store energy
during low demand periods and release it during high demand periods
How Pumped Storage Works?
During periods of low electricity demand, water is pumped from a lower reservoir to
an upper reservoir
When electricity demand is high, water from the upper reservoir is released to
generate electricity
This process allows for the efficient storage and release of energy to meet
fluctuating demand
About Megha Engineering and Infrastructure (MEIL)
Megha Engineering and Infrastructure Limited (MEIL) is a leading Indian infrastructure
company headquartered in Hyderabad, Telangana. Founded in 1989, MEIL has a strong

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presence in various sectors, including irrigation, power, oil and gas, transportation, and
mining.
One of the fastest-growing infrastructure companies in India
Executed several major projects, such as the Kaleshwaram Lift Irrigation Project and
the Polavaram Irrigation Project
Expanded its operations to other countries, including Nepal, Bangladesh, and Saudi
Arabia
Awarded the prestigious “Best Infrastructure Company” by the Economic Times in
2019
Actively contributes to social welfare through its CSR initiatives in education,
healthcare, and rural development
By harnessing the potential of pumped storage hydropower, the state aims to ensure a
more stable and reliable electricity supply for its residents and industries. MEIL’s success
in securing this project highlights its growing presence in the infrastructure sector and its
ability to take on large-scale, complex projects.[no_toc]
Telecom Industry Seeks Ban on Illegal WiFi 6E Routers
Published On Apr 30, 2024

The Cellular Operators Association of India (COAI), representing major telecom players
like Reliance Jio, Airtel, and Vodafone Idea, has urged the government to ban the sale of
WiFi 6E routers that utilize the 6 GHz spectrum band for data transmission. The
association alleges that these routers are being sold illegally through online platforms
such as Amazon, Flipkart, and Moglix, as well as offline traders.
The Department of Telecom (DoT) has not yet decided on the utilization of the 6 GHz
spectrum band
COAI argues that selling equipment for 6 GHz band utilization, which has not been
assigned or declared as licence-exempt by the government, is illegal
The sale of such WiFi 6E products results in unauthorized transmissions in the
country
COAI’s Request and Allegations
In a letter to DoT on April 15, COAI sought an immediate ban on the sale of WiFi 6E routers
operating in the 6 GHz band. The association provided an annexure with sample links to
WiFi routers from brands like TP-Link and Google being sold online. COAI alleges that the
utilization of such WiFi devices will render customers responsible for unauthorized
transmissions, shifting the liability from offenders to consumers.
Implications for Consumers
Customers using these unauthorized devices could unknowingly become liable for illegal
transmissions. The burden of responsibility for such unauthorized transmissions would be
placed on consumers rather than the sellers.
About Cellular Operators Association of India (COAI)
The Cellular Operators Association of India (COAI) is a non-governmental trade association

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that represents the interests of mobile network operators and telecom equipment
manufacturers in India. It was established in 1995 and is based in New Delhi.
Members include major telecom operators like Bharti Airtel, Reliance Jio, and
Vodafone Idea
Works towards creating a conducive regulatory environment for the growth of the
telecom industry
Engages with the government, policymakers, and other stakeholders on issues
related to spectrum allocation, licensing, and infrastructure development
Collaborates with international organizations like the GSMA to promote best
practices and technological advancements in the telecom sector
The association has requested the DoT to intervene and take strict measures to
completely ban the sale of WiFi products operating in the 6 GHz band
COAI seeks an appropriate notification to sellers, both offline and online
through e-commerce websites/platforms, to enforce the ban
The COAI’s proactive stance aims to prevent further illegal sales and protect consumers
from unwittingly engaging in unauthorized activities. The DoT’s decision on the utilization
of the 6 GHz band and its response to the COAI’s request will be crucial in addressing this
issue and ensuring compliance with telecom regulations in India.[no_toc]
RBI Proposes New Rules for Electronic Trading Platforms
Published On Apr 30, 2024

The Reserve Bank of India (RBI) has proposed a revised regulatory framework for
Electronic Trading Platforms (ETPs) in response to increased integration of the onshore
forex market with offshore markets and requests from market makers to access offshore
ETPs offering Indian Rupee (INR) products.
In October 2018, the RBI introduced a regulatory framework for ETPs to ensure fair
access, transparency, safety, efficiency, and prevention of market abuse
Since then, 13 ETPs operated by 5 operators have been authorized under this
framework
In recent years, there has been increased integration of the onshore forex market
with offshore markets, developments in technology, and increased product diversity
About Electronic Trading Platforms
Electronic Trading Platforms (ETPs) are digital systems that facilitate the trading of various
financial instruments, such as securities, derivatives, and foreign exchange products. ETPs
operate outside of traditional stock exchanges and provide a platform for buyers and
sellers to trade directly with each other.
Enable faster and more efficient trading compared to traditional methods
Offer increased transparency and liquidity in the market
Provide access to a wide range of financial instruments
Regulated by financial authorities to ensure fair and orderly trading
Examples include Alternative Trading Systems (ATS) and Electronic Communication

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Networks (ECNs)
Proposed Requirements for ETP Operators
Entities seeking authorization as ETP operators must maintain a minimum net worth
of Rs 5 crore at all times
The entity must be a company incorporated in India
Non-resident shareholding in the entity must comply with all applicable laws and
regulations, including the Foreign Exchange Management Act, 1999
The entity must maintain robust technology infrastructure with high reliability,
availability, scalability, and security to support operations and manage associated
risks
Eligible Instruments and Authorization
ETP operators authorized by or registered with the RBI must ensure that only transactions
in instruments approved by the central bank are contracted on their platform. No entity,
whether resident or non-resident, can operate an ETP without obtaining prior
authorization from or registering with the RBI. The RBI has invited comments on the draft
directions from ETP operators, banks, market participants, and other interested parties by
May 31, 2024.
The proposed revised regulatory framework for ETPs aims to address the evolving
landscape of the forex market and the increasing integration of onshore and offshore
markets. By setting clear requirements for ETP operators and ensuring that only approved
instruments are traded on these platforms, the RBI seeks to promote fair access,
transparency, and efficiency while managing the associated risks. The invitation for
comments from stakeholders demonstrates the central bank’s commitment to a
consultative approach in developing this framework.[no_toc]
200 More Gati Shakti Cargo Terminals: Indian Railways
Published On Apr 29, 2024

The Indian Railways plans to set up an additional 200 Gati Shakti Cargo Terminals (GCTs)
to boost freight revenue, decongest rail networks, and enable faster passenger train
movement. This expansion follows the successful implementation of the first 100 GCTs
announced in the Union Budget 2022-23.
GCTs are multi-modal terminals used by corporates to handle bulk cargo that is
transported via rail.
They are established under a policy that allows monetization of vacant Railway land
through public-private partnerships (PPP).
The first 100 GCTs were to be set up over 5 years from 2022-23.
Progress of Phase 1
77 out of the initial 100 GCTs have already been commissioned at a cost of around
₹5,400 crore.
These terminals are located in states like West Bengal, Jharkhand, Odisha,
Telangana, Tamil Nadu, and Uttar Pradesh.

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Major operators include Concor, Reliance, Adani, JSW, IOCL, and BPCL, among
others.
The remaining terminals are expected to be operational by the end of FY 2024-25.
Expansion Plans
Buoyed by the positive response, Railways will tender for 200 more GCTs once the
first 100 are completed.
The additional terminals are estimated to require ₹12,000-14,000 crore in private
investment.
Each terminal is expected to cost an average of ₹65-70 crore, with some ranging
from ₹50 crore to higher amounts.
Development Models
GCTs can be developed through two models:
1. On non-Railway land: Private players identify the location and construct the
terminal after obtaining necessary approvals.
2. On Railway land (fully/partially): Railways identifies land parcels, and the operator
for construction and operation is selected through open tendering.
Boosting Freight Share & Complementary Initiatives
Railways aims to increase its share in India’s freight traffic from the current 29% to
35% by 2030.
In FY24, Railways carried around 1,600 million tonnes (mt) of the total 5,500 mt cargo
moved across the country.
Major commodities transported include coal (787.6 mt), iron ore (181 mt), cement
(154 mt), and other volume-based items like white goods.
The development of GCTs is expected to lead to faster goods movement and
decongestion of tracks for passenger trains.
Railways also plans to add 5,000 km of new tracks every year for the next 3-5 years to
support the increased freight capacity.
About Gati Shakti Cargo Terminals
Gati Shakti Cargo Terminals are a key initiative of the Indian Railways to boost its freight
business and attract private investment.
Launched: 2022, as part of the PM Gati Shakti National Master Plan
Aim: To develop multimodal logistics facilities and reduce logistics costs
Target: 100 terminals to be developed in 5 years (2022-2027)
Model: Public-Private Partnership (PPP) and private sector investment
Location: On railway land or private land near railway facilities
Facilities: Warehousing, cold storage, customs clearance, and value-added services
Benefits: Reduced handling time, improved efficiency, and increased railway’s modal
share in freight transport
Gati Shakti Cargo Terminals are expected to transform India’s logistics landscape and
contribute to the country’s economic growth.[no_toc]

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CII’s Corporate Governance Charter for Startups

Published On Apr 29, 2024

The Confederation of Indian Industry (CII) launched a new Corporate Governance Charter
for startups to provide guidance on good governance practices tailored to the unique
needs of startups at different stages of growth.
About Corporate Governance Charter
The Charter serves as a voluntary, self-governing code to help startups become
responsible corporate citizens and demonstrate good governance to stakeholders. It is
designed for entities incorporated under the Companies Act, 2013. The key objectives are:
Promote adoption of good governance practices early in a startup’s lifecycle
Enable startups to gain benefits like value creation, trust, access to finance, effective
structures
Improve long-term survival chances for startups
Guidelines by Startup Stage
The Charter provides governance guidelines for four stages of a startup’s lifecycle:
1. Inception: Focus on board formation, tone at the top, compliance, accounting,
finance, audits, related party transactions, conflict resolution.
2. Progression: Expand board oversight, monitor metrics, maintain controls, define
decision-making, focus on finance and audits, set up committees, manage risk.
3. Growth: Build stakeholder alignment with vision/values, form board committees,
ensure diversity and inclusion, fulfill statutory requirements, monitor fund use,
comply with CSR/ESG, plan succession.
4. Going Public: Monitor committees, prevent fraud, redress grievances, manage
stakeholders, review policies and controls, comply with SEBI/stock exchange rules.
Key Benefits
Early adoption of governance best practices provides startups tangible and intangible
benefits enlisted as below:
Long-term value creation
Stakeholder trust
Better access to finance
Reduced promoter reliance
Effective organization structures
Improved survival odds
About The Confederation of Indian Industry (CII)
The Confederation of Indian Industry (CII) is a premier business association in India,
founded in 1895. It works to create a conducive environment for the growth of industry
through advisory and consultative processes.
Headquarters: New Delhi
Founded: 1895
Members: Over 9,000 from the private and public sectors

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Sectors represented: Manufacturing, infrastructure, agriculture, and services

Initiatives: Policy advocacy, trade fairs, networking events, and skill development
programs
Partnerships: Works closely with the government and international organizations
New Corporate Governance Charter provides startups a path to becoming responsible
corporate citizens.[no_toc]
RBI Releases Digital Lending – Transparency in Aggregation of Loan Products from
Multiple Lenders
Published On Apr 27, 2024

The Reserve Bank of India (RBI) has issued draft guidelines titled “Digital Lending –
Transparency in Aggregation of Loan Products from Multiple Lenders” to promote
transparency in the digital lending space. The guidelines propose that Lending Service
Providers (LSPs) should provide borrowers with a digital view of all loan offers available
from willing lenders with whom the LSP has arrangements.
Many LSPs offer aggregation services for loan products, wherein they have
outsourcing arrangements with several lenders.
In such cases, particularly where an LSP has arrangements with multiple lenders, the
identity of the potential lender may not be known upfront to the borrower.
The RBI has observed instances of some fintechs gaming the system, leading to the
need for enhanced transparency.
Key Proposals
LSPs shall provide a digital view of all loan offers available to the borrower, as per
their requirements, from all willing lenders with whom the LSP has arrangements.
LSPs should adopt a consistent approach in ascertaining the willingness of lenders to
offer a loan and disclose this approach on their website.
The digital view shall include the name(s) of the Regulated Entity (RE) extending the
loan offer, amount and tenor of the loan, Annual Percentage Rate (APR), and other
key terms and conditions to enable the borrower to make a fair comparison between
various offers.
A link to the Key Facts Statement (KFS) shall be provided for each RE.
The content displayed by the LSP shall be unbiased and shall not directly or indirectly
promote or push a product of a particular RE, including using any deceptive patterns
or “dark patterns” designed to mislead borrowers.
Objectives
Enable borrowers to have prior information about potential lenders to make an
informed decision.
Promote fair competition among lenders and prevent any bias or deceptive practices
by LSPs.
Enhance overall transparency in the digital lending ecosystem.

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About Digital Lending in India

Digital lending has grown rapidly in India, with the market expected to reach $350
billion by 2023.
The growth has been driven by factors such as increasing internet and smartphone
penetration, digital payments adoption, and the availability of alternative credit
scoring models.
However, the sector has also seen instances of malpractices, such as excessive
interest rates, hidden charges, and aggressive recovery practices, leading to
customer distress and even tragedies.
By empowering borrowers with clear information and preventing any bias or deception by
LSPs, the guidelines aim to foster a more trustworthy and responsible digital lending
ecosystem in India.[no_toc]
RBI Curbs on Kotak Bank
Published On Apr 27, 2024

The Reserve Bank of India (RBI) directed Kotak Mahindra Bank to immediately stop
onboarding new customers through online and mobile banking channels. The central
bank also barred the private lender from issuing fresh credit cards, citing significant
concerns observed during its IT examination of the bank for the years 2022 and 2023.
The RBI’s action was taken under Section 35A of the Banking Regulation Act, 1949,
which empowers the regulator to issue directives to banks to prevent their affairs
from being conducted in a manner detrimental to the interests of depositors or the
bank itself.
As of now, Kotak Mahindra Bank had issued 59.54 lakh credit cards.
Reasons for RBI’s Decision
The RBI’s IT examination revealed serious deficiencies and non-compliances in several
areas, including:
IT inventory management
Patch and change management
User access management
Vendor risk management
Data security and data leak prevention strategy
Business continuity and disaster recovery rigour and drill
The bank was found to be significantly non-compliant with the Corrective Action Plans
issued by the RBI for 2022 and 2023, with inadequate, incorrect, or unsustained
compliance submissions.
Impact on Customer Service
The RBI noted that due to the absence of a robust IT infrastructure and risk management
framework, Kotak Mahindra Bank’s Core Banking System (CBS), online, and digital banking
channels experienced frequent and significant outages in the last two years, causing
serious customer inconvenience. The most recent outage occurred on April 15, 2024.

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Impact on Existing Customers

Kotak Mahindra Bank will continue to provide services to its existing customers,
including credit card holders.
The bank clarified that its branches would continue to onboard new customers and
provide them with all services, except for the issuance of new credit cards.
About Reserve Bank of India (RBI)
RBI is India’s central banking institution, established in 1935 under the RBI Act, 1934.
It formulates and implements monetary policy with objectives like price stability and
economic growth.
RBI acts as the banker to the government and banks, manages foreign exchange
reserves, and issues currency.
It supervises and regulates commercial banks and non-banking financial institutions.
RBI has the power to issue directions to banks under Section 35A of the Banking
Regulation Act, 1949.
Important functions include maintaining financial stability, managing government
borrowings, and promoting credit and banking habits.
As digital transactions continue to grow, banks must ensure their systems are capable of
handling the increased load while providing seamless customer service and safeguarding
sensitive data.[no_toc]
India Requires 8-10% Annual Growth to Harness Demographic Dividend: RBI’s
Report
Published On Apr 24, 2024

According to the recent report, the Indian economy must grow at a rate of 8-10% per
annum over the next decade to reap the benefits of its demographic dividend. The RBI
emphasizes that India’s developmental strategy for the coming decades should focus on
maximizing the contribution of its young and growing labor force to the growth of gross
value added (GVA).
What is Demographic Dividend in India?
Demographic Dividend in India:
Working-age population expanding rapidly
7 million per year (2021-2031)
2 million per year (2031-2041)
Opportunity for accelerated economic growth
Requires focus on labor quality, employability, and formalization
India’s demographic dividend started accruing from 2018 and is expected to last
until 2055.
The working-age population in India is projected to expand at a rate of about 9.7
million per year during 2021-2031 and 4.2 million per annum during 2031-2041.
Growth Trajectory
In the past 10 years, the average annual real GDP growth in India has been less than

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6%.
However, in the post-pandemic years, the economic growth has been above 7%, with
capital deepening powering the step-up in the growth trajectory.
The RBI notes that conditions are shaping up for an extension of the trend upshift
that took the average real GDP growth above 8% during 2021-2024.
Development Strategy
The RBI emphasizes that the cutting edge of the growth strategy will be provided by
a focus on labor quality.
Raising employability, with a focus on the formalization of employment opportunities
for the youth and women, should continue to be the hallmark of the strategy.
While labor quality has grown slowly in the past, there is growing evidence that the
growth rate of aggregate labor quality has improved since 2017-2018.
Inflation Risks
The RBI warns that extreme weather events, along with prolonged geopolitical
tensions, pose a risk to inflation.
Food inflation, despite some signs of moderation, remains elevated and a potential
source of risk to the disinflation trajectory.
The impact of food shock on core inflation has reduced over time, while that of fuel
shock has increased recently.
About RBI (Reserve Bank of India)
India’s central bank and monetary authority, established in 1935
Responsible for monetary policy, currency management, and financial stability
Regulates and supervises banks and non-banking financial companies (NBFCs)
Manages foreign exchange reserves and governs foreign exchange market
Promotes financial inclusion and development
Publishes monthly bulletins and annual reports on the state of the economy
Emphasizes the need for 8-10% annual growth to harness India’s demographic
dividend
Additional Facts related to Indian Economy
India’s annual retail inflation based on the Consumer Price Index (CPI) eased to 4.9%
in March 2024, after averaging 5.1% in the preceding two months and a high of 5.7%
in December 2023.
The RBI has sharply increased the policy repo rate during 2022 to control inflation
and has kept it unchanged since February 2023.
India’s GDP growth for the current financial year (FY25) is pegged at 7% by the RBI’s
monetary policy committee.
India’s ability to achieve and sustain high economic growth is crucial for harnessing its
demographic dividend and improving the living standards of its population.[no_toc]
NABARD Launches Climate Strategy 2030 for Green Financing
Published On Apr 24, 2024

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The National Bank for Agriculture and Rural Development (NABARD) unveiled its Climate
Strategy 2030 document on Earth Day to address India’s growing need for green
financing. The strategy aims to mobilize resources for climate change mitigation,
adaptation, and resilience projects in the country.
India’s Green Financing Gap
India requires approximately $170 billion annually to reach a cumulative total of over
$2.5 trillion by 2030 for green financing.
As of 2019-20, India garnered only about $49 billion in green financing, with the
majority of funds earmarked for mitigation.
A mere $5 billion was allocated towards adaptation and resilience, reflecting minimal
private sector engagement due to challenges in bankability and commercial viability.
About NABARD’s Climate Strategy 2030
The strategy is structured around four key pillars:
Accelerating green lending across sectors
Playing a broader market-making role
Internal green transformation of NABARD
Strategic resource mobilization
The initiative reinforces NABARD’s commitment to environmental stewardship and
positions it as a pivotal player in India’s transition towards a resilient and sustainable
economy.
Real Estate Developers’ Sustainable Practices
Leading real estate developers have pledged for sustainable development practices.
DLF, the only Indian real estate company featured in the Dow Jones Sustainability
Index for the past three years, has implemented practices such as zero-discharge
water systems and sewage treatment plants, recycling millions of liters of water
daily.
Signature Global (India) Ltd. has majority of its projects either EDGE certified or IGBC
gold-rated, saving around 52% of water usage through low-flow water faucets,
toilets, rainwater harvesting systems, and wastewater treatment and reuse facilities.
Remsons Industries’ ESG Excellence
Remsons Industries Ltd., an auto ancillary manufacturer, received Gold Medal in the
Ecovadis Sustainability Assessment, recognizing it as one of the top 5% of all
evaluated companies globally for its commitment to environmental, social, and
governance (ESG) excellence.
The company showcased exemplary performance in key areas such as Environment,
Labour and Human Rights, Ethics, and Sustainable Procurement.
About India’s efforts to sustainable Environment
India is the world’s third-largest emitter of greenhouse gases, after China and the
United States.
The country has set an ambitious target of achieving 175 GW of renewable energy

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capacity by 2022 and 450 GW by 2030.

India’s Nationally Determined Contribution (NDC) under the Paris Agreement
includes reducing the emissions intensity of its GDP by 33-35% by 2030 from the
2005 level.
The Indian government has launched several initiatives to promote green financing,
such as the Partial Credit Guarantee Scheme for NBFCs, the Green Climate Fund, and
the National Adaptation Fund for Climate Change.
This is a significant step towards mobilizing green financing in India and helping the
country meet its climate change commitments.[no_toc]
Atul Goel Panel to Finalize List of OTC Drugs for Sale at General Stores
Published On Apr 23, 2024

Government has set up a three-member committee of gynecologists to finalize a list of

over-the-counter (OTC) drugs that will be available for sale at general stores without the
need for a prescription. The committee, chaired by the Directorate General of Health
Services Atul Goel, aims to complete the list within two weeks. This initiative is part of
India’s new OTC policy for drugs, which seeks to reduce treatment costs and promote self-
care while ensuring safety.
Key Objectives
Improve accessibility to commonly used medicines, especially in rural areas
Reduce treatment costs for citizens
Promote responsible self-care practices
Ensure safety and efficacy of OTC drugs
Current Status of OTC Drugs in India
India currently lacks a clear policy to regulate the distribution, marketing, and
consumption of OTC drugs.
Commonly used medicines for cough, cold, and contraceptives are often sold over
the counter without proper guidelines.
The Drugs & Cosmetics Act, 1940, and the Drugs & Cosmetics Rules, 1945, do not
define OTC medicines.
Criteria for Inclusion in OTC List
The list of OTC drugs will be based on the following factors:
Evidence of safety
Availability
Non-habit-forming nature
Suitability for self-medication
About The Drugs Technical Advisory Board (DTAB)
The Drugs Technical Advisory Board (DTAB) is a statutory body under the Ministry of
Health and Family Welfare that advises the Central and State governments on technical
matters related to drugs and cosmetics.
Established under the Drugs and Cosmetics Act, 1940

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Comprises experts from various fields such as medicine, pharmaceuticals, and

chemistry
Recommends measures to ensure safety, efficacy, and quality of drugs and
cosmetics
Advises on matters related to import, manufacture, distribution, and sale of drugs
and cosmetics
Plays a crucial role in shaping India’s drug regulatory policies
Many countries, such as the United States, United Kingdom, and China, have
well-established guidelines for the classification, use, and regulation of OTC
medicines.
The global OTC drugs market is expected to reach $178.8 billion by 2026, with a
CAGR of 6.1% from 2021 to 2026.
In India, the OTC drugs market is estimated to be worth $7.8 billion as of 2022,
with a projected CAGR of 9.2% from 2022 to 2027.
However, it is crucial to ensure that proper guidelines and regulations are in place to
maintain the safety and efficacy of the drugs included in the OTC list.[no_toc]
Government allies With SBI Card and Telcos to Tackle OTP Frauds
Published On Apr 23, 2024

The Government of India, in collaboration with SBI Cards and Payment Services Ltd (SBI
Card) and telecom operators, is developing an innovative solution to combat the growing
threat of cyber fraud and phishing attacks involving stolen one-time passwords (OTPs).
The Centre is testing a system that allows banks to track the registered address and
geolocation of a customer and compare it with the location where the OTP is being
delivered. In case of any discrepancy, the customer can be alerted of a possible phishing
attack.
Background
The Reserve Bank of India (RBI) had mandated an additional factor of authentication
for digital payment transactions to prevent frauds.
However, fraudsters have developed advanced capabilities to steal OTPs by
misleading customers or rerouting OTPs to their own devices, rendering the second
factor of authentication ineffective.
How the Solution Works?
Banks will track the SIM card location of a customer through telecom service
providers and compare it with the customer’s registered address in their database.
If the OTP is delivered to a location unrelated to the customer, a pop-up alert can be
displayed on the customer’s screen, warning of a possible phishing attack.
In extreme cases, the OTP can be blocked altogether to prevent fraudulent
transactions.
Cybercrime Statistics in India
According to the Indian Cyber Crime Coordination Centre (i4C), cyber criminals

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siphoned off Rs 10,319 crore between April 2021 and December 2023.
Most crimes originated from China, Cambodia, and Myanmar, involving non-state
actors.
The government’s ‘Citizen Financial Cyber Fraud Reporting and Management System’
has prevented about Rs 1,200 crore of fraudulent transfers from more than 470,000
citizen complaints received until February 2024.
About The National Cyber Security Coordinator (NCSC)
Established in 2014 under the National Security Council Secretariat
Responsible for coordinating cyber security matters across different sectors and
agencies
Plays a key role in formulating and implementing India’s cyber security strategy
Coordinates with international partners to enhance global cyber security cooperation
Advises the government on critical information infrastructure protection and cyber
crisis management
About The Indian Computer Emergency Response Team (CERT-In)
Operational since 2004 under the Ministry of Electronics and Information Technology
Serves as the national nodal agency for responding to cyber security incidents
Monitors and analyses cyber threats, vulnerabilities, and incidents
Provides alerts, advisories, and guidelines to enhance cyber security preparedness
Conducts cyber security drills and training programs for government and critical
sector organizations
About India’s Cyber security
India has the second-largest telecom market in the world, with over 1.16 billion
subscribers as of Now.
The country has also seen a significant rise in digital payments, with transaction
volumes reaching 7,422.68 crore in FY 2023, up from 5,554.59 crore in the previous
year.
The Government of India has taken several steps to strengthen cybersecurity,
including the establishment of The National Cyber Security Coordinator (NCSC)
and The Indian Computer Emergency Response Team (CERT-In).
As the country continues to embrace digital payments, such initiatives will play a crucial
role in building trust and confidence among users while safeguarding their financial
interests.[no_toc]
Centre Seeks Supreme Court's Clarification on Administrative Allocation of
Spectrum
Published On Apr 23, 2024

The Union government has approached the Supreme Court seeking clarification on
whether it can allocate certain classes of spectrum through administrative process, rather
than competitive auctions. The government argues that administrative allocation may be
necessary in certain situations to address unanticipated priorities related to national

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security, public interest, or when auctions are not viable due to technical or economic
reasons.
Background
In 2012, the Supreme Court, in the landmark 2G spectrum case, had held that the
state must adopt a method of auction when it comes to the alienation of scarce
natural resources like spectrum.
Subsequently, a Presidential reference was also made on this issue, which reiterated
the need for competitive auctions for distribution of natural public-owned resources.
Government’s Plea
The government, in its application, has sought clarification on the following points:
Administrative allocation of spectrum should be allowed if determined through due
process and in accordance with law, if such assignment is in pursuit of governmental
functions or public interest, or if auction is not preferred due to technical or
economic reasons.
Assignment of spectrum may be required administratively due to economic
conditions (demand being lower than supply) or technical conditions (spectrum for
space communication, where sharing by multiple players is more efficient than
exclusive assignment through auction).
Spectrum is required not just for commercial telecom services, but also for non-
commercial use for discharge of sovereign and public interest functions like security,
safety, disaster preparedness etc. In some cases, auctions may not be technically or
economically optimal.
What is Spectrum?
Spectrum is a scarce natural resource, and its allocation has been a contentious issue
in India.
The 2G spectrum case, which led to the cancellation of 122 telecom licenses by the
Supreme Court, was one of the biggest corruption scandals in India’s history.
The government earns substantial revenue through spectrum auctions. In the
recently concluded auction in March 2021, the government earned over Rs 77,800
crore.
Apart from commercial telecom services, spectrum is also used for various other
purposes like defense, space communication, disaster management, broadcasting
etc.
About Indian telecom sector
The Indian telecom sector is the world’s second-largest by number of telephone and
internet users.
India has over approx. 1.16 billion telephone subscribers
The sector is dominated by three major players: Reliance Jio, Bharti Airtel, and
Vodafone Idea
The Department of Telecommunications (DoT) is responsible for policy formulation,

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licensing, and coordination matters

The Telecom Regulatory Authority of India (TRAI) is the regulatory body for the
sector
The government has launched various initiatives like Digital India and BharatNet to
boost connectivity and digital services
The government’s plea for clarification on administrative allocation of spectrum is a
significant development, as it seeks to balance the need for transparency and fair
competition.[no_toc]
India's Jewellery Exports Surge in FY24
Published On Apr 23, 2024

India’s jewellery exports, particularly plain gold jewellery, experienced significant growth
in the 2023-24 financial year (FY24) despite various challenges faced by the industry. The
Gems & Jewellery Export Promotion Council (GJEPC) reported a 61.72% increase in plain
gold jewellery exports, reaching $6,792.24 million compared to $4,199.96 million in the
previous year.
Key Facts
Total gold jewellery exports (plain and studded) grew by 16.75% in FY24.
The industry faced challenges such as economic downturns in major export markets
and geopolitical concerns, which led to a decline in demand.
The UAE and Bahrain accounted for over 85% of India’s plain gold jewellery exports.
The UAE emerged as a significant market, with exports growing by 107.2% to reach
$4,528.66 million in FY24.
Australia witnessed a 37% growth in plain gold jewellery exports, attributed to the
India-Australia ECTA.
Platinum gold jewellery exports showed robust growth of 449.16%, reaching $163.48
million in FY24.
Coloured gemstone exports increased by 14% to $478.71 million.
Impact of Trade Agreements
The implementation of the India-UAE Comprehensive Economic Partnership Agreement
(CEPA) played a crucial role in boosting plain gold jewellery exports.
Efforts to Enhance Exports
The GJEPC has been actively working with the government to implement favourable
policies in forthcoming trade agreements with GCC, Canada, UK, and EU.
The council is confident that this proactive engagement will positively impact gem
and jewellery exports to these nations in the coming months.
About India’s Gold storage status
India holds the 9th largest gold reserves globally, with 820.625 metric tons as of April
2024. The majority of India’s gold is stored in the Reserve Bank of India’s (RBI) vaults, with
a smaller portion held by commercial banks.
RBI’s gold reserves account for 8.2-9% of India’s total foreign exchange reserves

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The Gold Monetization Scheme allows individuals to deposit gold with banks and
earn interest
The Sovereign Gold Bond Scheme enables investments in gold without physical
ownership
India is the world’s largest gold jewellery exporter, accounting for around 22%
of the global gold jewellery exports.
The Indian gem and jewellery industry contributes about 7% to the country’s
GDP and employs over 4.64 million workers.
The government has taken various initiatives to boost the sector, such as
setting up jewellery parks, promoting skill development, and providing financial
assistance to exporters.
Despite facing challenges, India’s jewellery exports, particularly plain gold jewellery, have
shown remarkable growth in FY24. The implementation of trade agreements and the
efforts of GJEPC in collaboration with the government are expected to further boost the
gem and jewellery industry’s exports in the coming years.[no_toc]
What is Project Nimbus?
Published On Apr 23, 2024

The technology giant Google has recently made headlines due to its handling of employee
protests against Project Nimbus, a lucrative cloud computing contract with the Israeli
government. In April 2024, Google fired 20 employees, adding to the previously dismissed
28 workers who participated in sit-in protests. These terminations reportedly extended to
even non-participating bystanders, escalating concerns regarding freedom of expression
and internal company retaliation.
What is Project Nimbus?
Project Nimbus, signed in 2021, involves a $1.2 billion agreement where Google, alongside
Amazon, provides advanced cloud services and AI capabilities to Israel. The controversy
particularly spirals around accusations that these technologies might be supporting
military actions during the ongoing conflict in Gaza. Despite Google’s assurances that
these technologies are not being used for weaponry or intelligence missions directly
supporting military operations, there is a sense of skepticism among employees and
activists.
Employee Protests
The core of the unrest among Google employees is rooted in ethical concerns about the
potential misuse of Google’s technology in warfare and human rights violations. The
protesters, supported by the advocacy group No Tech For Apartheid, argue that the
technology provided under Project Nimbus could exacerbate the military conflict in Gaza.
These employees liken their protests to previous movements within the company, such as
the opposition to Project Maven, which led Google to eventually terminate the contract
due to similar concerns.

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Google’s Stance
In the wake of these protests, Google’s top executives, including CEO Sundar Pichai,
emphasized the need to maintain a neutral and focused work environment. Pichai
articulated that while the company values open discussion, it is crucial to not allow these
debates to disrupt work or create an uncomfortable atmosphere for other employees.
This has led to moderation and occasionally the locking of internal discussion threads that
became too heated or were deemed inappropriate for the workplace.
Historical Context and Previous Protests
Google has faced internal protests before too, notably in 2018, related to Project Maven
and issues around how sexual assault allegations were handled within the company.
These events have demonstrated Google’s responsive, albeit sometimes criticized,
approach to employee activism and participation in ethically charged issues. Moreover,
they indicate a growing trend of tech workers seeking a say in how their work is utilized,
particularly when it intersects with broader social and ethical dilemmas.
Legal and Ethical Implications
The firing of employees for protest actions raises significant questions about the balance
between employer policies and employee rights under U.S. labor laws, which protect
collective action concerning working conditions. The broadening of this protection in the
context of the tech industry, known for its liberal and innovative work culture, underscores
the complexity of navigating corporate ethics, employee rights, and business contracts in
conflict-prone regions of the world.[no_toc]
Ethylene Oxide Contamination in Indian Spice Brands
Published On Apr 22, 2024

Recently, the reports emerged from Hong Kong’s Centre for Food Safety (CFS) and the
Singapore Food Agency (SFA) indicating the detection of ethylene oxide, a known
carcinogen, in several Indian spice products. Ethylene oxide has been classified by the
International Agency for Research on Cancer (IARC) as a Group-1 carcinogen, due to its
potential to cause cancer when humans are exposed to it. The affected products included
specific batches of spices from popular Indian brands MDH and Everest, leading to recalls
and a cessation of sales in affected markets.
About Ethylene Oxide
Ethylene oxide is a chemical primarily used for sterilizing medical equipment and in the
manufacture of chemicals like ethylene glycol, which is used as antifreeze, coolant,
solvent, and precursor to many polymers.
However, it is sometimes used to fumigate foodstuffs to reduce microbial contamination.
Despite its effectiveness in these roles, its status as a Group-1 carcinogen necessitates
careful management and regulation. Long-term exposure or high concentrations can lead
to severe health risks including mutagenicity (changes in DNA), reproductive effects, and
carcinogenicity.

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Regulations and Impact

Different countries have varying regulations concerning the permissible levels of ethylene
oxide in food products. For instance, the European Union has strict limits, whereas
regulations might be more lenient or stricter in other regions.
The detection of this compound in Indian spice exports leads to highlight the significant
oversight and regulatory mismatch between production standards applied in India and
the standards expected by international markets.
Spices Involved and Measures Taken
The CFS report specifically named MDH’s Madras Curry Powder, Sambhar Masala, and
Curry Powder, along with Everest’s Fish Curry Masala as contaminated products. Actions
taken included immediate recall instructions, stop-sale notices, and ongoing
investigations into other potentially affected products.
About Spice Industry in India
India is one of the largest producers and exporters of spices in the world, known for its
diverse and flavourful spice varieties. The spices are not only integral to Indian cuisine but
also play a pivotal role in the economic and cultural exchange between India and the
world. Given the reliance on agricultural exports, incidents like these can tarnish the
reputation of Indian spice brands and affect economic stability.
Market and Consumer Impact
Internationally, this event might lead consumers to be wary of spice products from
regions with perceived weaker food safety regulations, impacting market trust and
consumer behaviour. It also stresses the importance for exporting countries to adhere
strictly to international food safety standards to maintain their market positions.[no_toc]
Space Debris Threat to Earth's Defenses
Published On Apr 20, 2024

As the number of satellites in Earth’s orbit continues to grow at an unprecedented rate,

experts are raising concerns about the potential impact of space debris on the planet’s
magnetic field and atmosphere.
The Growing Problem of Space Debris
Current estimates suggest that there are nearly 10,000 active satellites in orbit, with
companies working to deploy tens of thousands more in the coming decades.
Jonathan McDowell from the Harvard-Smithsonian Center for Astrophysics projects
that the number of satellites could reach 100,000 within the next 10 to 15 years.
The rapid increase in satellite launches is resulting in a significant amount of space
debris, including defunct rockets and satellites that are no longer operational.
Potential Impact on Earth’s Magnetic Field and Ionosphere
The influx of metallic debris from defunct rockets and satellites could disrupt the
ionosphere and magnetosphere, which are essential systems that protect Earth’s
atmosphere and sustain life on the planet.
The ionosphere, located roughly 48 to 965 kilometers above the Earth’s surface, is a

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region where atoms and molecules become ionized by solar radiation, creating a
layer of charged particles that reflects radio waves and enables long-distance
communication.
The ionosphere also helps protect life on Earth by absorbing harmful ultraviolet
radiation from the Sun.
The magnetosphere is a plasma cocoon that surrounds the Earth, interacting with
the solar wind and cosmic radiation to create a shield against harmful particles and
radiation from space.
The Scale of the Problem
Current estimates suggest that the amount of metallic ash being dumped into the
ionosphere annually is equivalent to multiple Eiffel Towers’ worth of debris.
Unlike meteorites, which are small and contain only trace amounts of aluminum, the
wrecked spacecraft are large and consist entirely of aluminum and other highly
conductive materials.
The accumulation of conductive materials in the magnetosphere could potentially
trap or deflect parts of the Earth’s magnetic field, leading to regional perturbations
and holes above the ozone layer.
Lack of Comprehensive Studies
Despite the potential risks posed by space pollution, there is a lack of comprehensive
studies on its impact on the magnetosphere and ionosphere.
Plasma physicist Sierra Solter, who has been studying the issue, emphasizes the
need for more research to understand the potential consequences of satellite debris
on Earth’s plasma environment.
The rapid expansion of satellite constellations, driven by companies competing for
dominance in the satellite internet market, is leading to an alarming accumulation of
metallic debris that could disrupt the delicate balance of the magnetosphere and
ionosphere, which play crucial roles in protecting life on Earth.[no_toc]
SEBI’s Proposed Framework for Undervalued Companies
Published On Apr 20, 2024

The Securities and Exchange Board of India (SEBI) has proposed a framework for price
discovery of shares of listed Investment Companies (ICs) and Investment Holding
Companies (IHCs) whose market price is trading at a significant discount to their book
value.
Proposed Special Call-Auction Mechanism
SEBI has suggested a special call-auction mechanism without price bands for listed ICs
and IHCs whose shares are trading at a substantial discount to their book value.
The regulator has proposed that stock exchanges coordinate among themselves to
provide this mechanism once a year for eligible companies.
SEBI proposed a special call-auction for listed investment companies (ICs) and investment
holding companies (IHCs) whose shares trade at a significant discount to book value.

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Key points
Special annual call-auction without price bands
Aims to improve liquidity and fair price discovery
Eligibility: Over 50% assets in other listed firms, 6-month VWAP <50% of book value
Auction considered successful if 5+ unique buyers/sellers participate
28 out of 70 ICs/IHCs potentially eligible under proposed criteria
Rationale Behind the Proposal
Some market observers believe that the significant difference between the market price
and book value of these companies negatively impacts liquidity, fair price discovery, and
investor interest. SEBI received presentations from market participants suggesting
unrestricted price discovery for these shares, as the existing circuit filters prevent market
prices from reflecting the true investment value, resulting in wide variances from book
value and low liquidity.
Current Situation
Presently, shares of some listed ICs and IHCs are traded infrequently at prices significantly
lower than their disclosed book value. These companies typically lack day-to-day
operations and primarily hold investments, including shares of other listed companies.
Despite holding high-value investments, the market value of an IC or IHC can differ
significantly from its book value, possibly due to growth in investments in other listed
companies. The proposal aims to address liquidity issues and improve fair price discovery
for these companies.[no_toc]
Current Forex Reserves of India
Published On Apr 20, 2024

According to the latest report released, India’s foreign exchange reserves fell by $5.4
billion to $643.16 billion. This decline comes after the reserves reached an all-time high of
$648.56 billion, following a seven-week gaining streak.
Breakdown of the Decline
The decrease in the forex reserves was primarily due to a decline in foreign currency
assets (FCAs), which fell by $6.51 billion to $564.65 billion. FCAs, the largest component of
the forex reserves, include the effect of appreciation or depreciation of non-US currencies
like the euro, pound, and yen held in the reserves.
Gold reserves, on the other hand, expanded by $1.24 billion to $55.8 billion during the
same week. Special Drawing Rights (SDRs) decreased by $93 million to $18.08 billion, while
the reserve position in the International Monetary Fund (IMF) dipped by $35 million to
$4.63 billion.
Recent Trends in India’s Forex Reserves
In the calendar year 2023, the RBI added about $58 billion to its foreign exchange
kitty.
However, in 2022, India’s forex reserves slumped by $71 billion cumulatively.
So far in 2024, the reserves have risen by approximately $23 billion on a cumulative

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basis.
The country’s foreign exchange reserves last touched their all-time high in October
2021.
The decline after that can be attributed to factors such as the rise in the cost of
imported goods in 2022 and the RBI’s intervention in the market to defend the rupee
against a surging US dollar.
RBI’s Role in Managing Forex Reserves
The RBI closely monitors the foreign exchange markets and intervenes from time to time
to maintain orderly market conditions by containing excessive volatility in the exchange
rate.
This intervention is done without reference to any pre-determined target level or band.
Typically, the RBI intervenes in the market through liquidity management, including the
selling of dollars, to prevent a steep depreciation in the rupee.
The central bank’s actions help in maintaining stability in the foreign exchange market and
managing the country’s forex reserves effectively.
About Forex Reserves
India’s foreign exchange reserves are the foreign assets held or controlled by the Reserve
Bank of India (RBI). These reserves comprise:
Foreign currency assets
Gold reserves
Special Drawing Rights (SDRs)
Reserve position with the International Monetary Fund (IMF)
Forex reserves are assets held by a nation’s central bank or monetary authority, usually in
reserve currencies like the US dollar, euro, Japanese yen, and pound sterling. These
reserves play a crucial role in ensuring the stability of the domestic currency, managing
the country’s external trade, and providing a buffer against economic shocks.
Adequate forex reserves help in maintaining investor confidence in the country’s economy
and provide the central bank with the necessary ammunition to intervene in the market
during times of volatility.[no_toc]
Bharat BillPay Enables SBI NCMC Card Recharge
Published On Apr 19, 2024

National Payments Corporation of India’s (NPCI) wholly-owned subsidiary NPCI Bharat

BillPay Limited (NBBL) has partnered with State Bank of India (SBI) to enable online
recharge of SBI’s National Common Mobility Cards (NCMC) through the Bharat BillPay
platform. This move aims to provide a convenient and seamless top-up facility to NCMC
users while avoiding long queues.
The NCMC recharge facility has already gone live for SBI NCMC cards for transit systems
like Noida Metro, Nagpur Metro, MMRDA Line 2A & 7, Chennai Metro, Kanpur Metro, and
also for Parliament Canteen via SBI’s Bharat BillPay-enabled app called SBI Unipay. More
platforms are expected to enable this service soon.

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Key Features and Benefits of this Project

Customers can recharge their NCMC cards with up to Rs. 10,000 online through
various Bharat BillPay-enabled apps and portals
Multiple payment options supported including credit cards, debit cards and prepaid
payment instruments
Instant reflection of recharge amount on tapping the NCMC card at the transit
terminal
Enhances convenience for travellers by enabling anytime anywhere recharge facility
Aligns with the Government of India’s vision of a cashless economy and the adoption
of interoperable transport cards
About NCMC
National Common Mobility Card is an inter-operable transport card conceived by the
Ministry of Housing and Urban Affairs of the Government of India.
It enables seamless travel by different metros and other transport systems across
the country besides retail shopping and purchases.
The NCMC card is isued by banks and last-mile operationalization is done by transit
system operators.
SBI is one of key issuers of NCMC cards.
About NPCI and Bharat BillPay
Set up in 2008, NPCI is an umbrella organization for all retail payments in India.
It aims to facilitate digital payments and financial inclusion through it’s various
products like Bharat Bill Payment System (BBPS).
This initiative is a one-stop platform for facilitating all recurring bill payments. It interfaced
between billers and customers through a network of agents and online portals for
enabling bill payment services.[no_toc]
Kerala to introduce SOPs under One Health initiative
Published On Apr 18, 2024

The Kerala Health Department is set to introduce detailed standard operating procedures
(SOPs) for the outbreak investigation and control of at least eight infectious diseases as
part of its One Health initiative. This marks the first time that such comprehensive
guidelines are being developed at the state level on the One Health platform in India. The
SOPs aim to establish an early disease surveillance, prevention, and control mechanism in
districts.
Diseases Covered in One Health initiative
The SOPs cover several diseases and disease conditions, including:
Water-borne diseases like acute diarrhoeal diseases, Hepatitis A and E
Food-borne infections
Mosquito-borne diseases like dengue, chikungunya, and Zika
Acute Encephalitis Syndrome (Japanese encephalitis and West Nile fever)
Kyasanur Forest Disease (KFD)

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Nipah virus infection

Leptospirosis
Avian influenza
These guidelines were developed during a two-day joint outbreak investigation planning
workshop organized by the Centre for One Health, Kerala.
Implementation of One Health Project
The One Health project is currently being implemented as part of the World Bank-aided
Rebuild Kerala project in four districts of the state: Alappuzha, Pathanamthitta, Kottayam,
and Idukki. The project aims to establish a community-based disease surveillance network
where trained One Health volunteers can report unusual events or deaths of
animals/birds in their locality. This enables early warning and timely preventive or control
measures. As part of the project, 2.5 lakh volunteers (56 in every ward) have already been
trained in these four districts.
Integration of One Health Project with Aardram Mission
One Health has been included as a major component of the second phase of Kerala’s
Aardram Mission, recognizing that human health is inextricably linked to animal and
environmental health. The mission emphasizes the need for coordinated efforts from
various departments, including Health, Animal Husbandry, Forest, Food Safety,
Agriculture, and Fisheries, to control the increasing incidence of zoonotic disease
outbreaks.
Additional Facts
The One Health approach recognizes that the health of people is closely connected
to the health of animals and our shared environment. It involves the collaborative
efforts of multiple disciplines working locally, nationally, and globally to attain
optimal health for people, animals, and the environment.
Kerala has faced several zoonotic disease outbreaks in recent years, including Nipah
virus infections in 2018 and 2019, and avian influenza (H5N8) in 2021.
The World Health Organization (WHO) has been promoting the One Health approach
as a key strategy for preventing and managing zoonotic diseases, which account for
over 60% of all infectious diseases in humans.
India launched its National One Health Framework in 2021 to foster collaboration
and coordination among various sectors for the prevention, detection, and response
to public health threats.
By adopting a collaborative, multi-sectoral approach, Kerala aims to enhance early disease
detection, prevention, and control, ultimately safeguarding public health.[no_toc]
PayTM approved by NPCI for User Bank Migration
Published On Apr 18, 2024

Paytm has received approval from the National Payments Corporation of India (NPCI) to
migrate its users to other banks for Unified Payments Interface (UPI) based payment
services.

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The company has completed its integration with four major banks – State Bank of India,
Yes Bank, HDFC Bank, and Axis Bank – and has started the process of transitioning its
users to these new Payment System Provider (PSP) banks.
However, following a directive from the Reserve Bank of India (RBI) ordering Paytm
Payments Bank to shut down basic banking services by March 15, 2024, Paytm had to
migrate its systems to other banks to ensure continuity of its payments business.
NPCI Approval and Integration
On March 14, 2024, NPCI allowed Paytm to migrate into a Third-Party Application Provider
(TPAP) model with the four aforementioned banks.
The backend integration is now complete, and customer migration can commence. Paytm
received clearance from NPCI on April 16, 2024, to start the migration of its users. All
@paytm handle users will now be migrated to these banks.
What is TPAP for Seamless UPI Payments?
The four banks are now operational on the TPAP, streamlining the process for Paytm
to shift user accounts to them. This ensures that Paytm can continue to provide
uninterrupted and secure UPI payments for both users and merchants through the
Paytm app.
TPAP is a model that allows a third-party application provider, such as Paytm, to
integrate with multiple banks for UPI payment services. Under this model, the third-
party application provider can onboard users and facilitate UPI transactions through
the infrastructure of partner banks, without having to rely on a single bank or its
own payments bank.
TPAP which is a multi-bank payment service provider API model introduced by the
National Payments Corporation of India (NPCI) for UPI (Unified Payments Interface)
transactions.
TPAP is a significant development in the UPI payments landscape, as it allows third-
party application providers like Paytm to integrate with multiple banks, ensuring a
more reliable, secure, and seamless payment experience for users while complying
with regulatory requirements and fostering the growth of the UPI ecosystem.
New Virtual Payment Addresses (VPAs)
Paytm UPI users can now create new VPAs with partner PSP banks.
The company has started transitioning ‘@paytm’ handle users to these banks,
ensuring a smooth transition to the new UPI IDs.
The new VPAs will be in the format of @ptsbi, @pthdfc, @ptaxis, and @ptyes,
corresponding to the respective partner banks.
About Paytm
Paytm is an Indian multinational financial technology company, founded in 2010 by Vijay
Shekhar Sharma.
Offers digital payment services, including mobile recharges, utility bill payments, and
QR code-based transactions

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Launched Paytm Wallet, a mobile-based payment solution, in 2014

Became India’s first payment app to cross over 100 million downloads in 2017
Introduced Paytm Payments Bank in 2017, which later faced regulatory issues
Listed on Indian stock exchanges in 2021, raising $2.5 billion in India’s largest-ever
IPO
[no_toc]
India's Rising Pulses Imports
Published On Apr 18, 2024

India, despite being a major producer and consumer of pulses, has seen a significant
increase in pulses imports in the 2023-24 fiscal year. Imports have nearly doubled to USD
3.74 billion, with shipments have surpassed 45 lakh tonnes, compared to 24.5 lakh tonnes
in the previous year. The government is taking various measures to meet domestic
demand and keep prices in check, including negotiating with new markets like Brazil and
Argentina for long-term import contracts.
Government Initiatives and Import Sources
To ensure a stable supply of pulses and control prices, the Government of India has
allowed duty-free imports of yellow peas until June 2024 and duty-free imports of arhar
and urad until March 31, 2025. Additionally, the government has contracted with
Mozambique, Tanzania, and Myanmar to import pulses. Over 20,000 tonnes of urad will
be imported from Brazil, and negotiations are in the final stages to import arhar from
Argentina.
Inflation Concerns and Government Actions
With the ongoing election process, pulses inflation is a major concern for the government.
Recent figures suggest pulses inflation at 17% in March and 19% in February 2024. To
keep prices in check, the government imposed stock limits on pulses on April 15, 2024,
and has asked states to be vigilant against hoarding.
Domestic Production Challenges
Despite various incentives provided by the government, such as guaranteed purchases
and higher Minimum Support Prices (MSP), domestic production of pulses has declined in
the last 2-3 years. The Agriculture Ministry estimates suggest that pulses production in
2023-24 will be 234 lakh tonnes, down from 261 lakh tonnes in the previous year. Pulses
production had increased from 230.25 lakh tonnes in 2019-20 to 273.02 lakh tonnes in
2021-22 due to government incentives but declined to 260.58 lakh tonnes in 2022-23.
Factors Affecting Domestic Production
Several factors have contributed to the decline in domestic pulses production, including:
Erratic weather conditions in major pulses-producing states
Shift in cropping patterns due to better returns from other crops
Pest and disease outbreaks affecting yield and quality
Inadequate post-harvest storage and processing infrastructure
Government is working towards improving domestic production through various

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initiatives such as promoting the adoption of high-yielding varieties, expanding irrigation

facilities, and strengthening the pulses value chain. However, the country is likely to
remain a significant importer of pulses in the near future, given the challenges faced by
the domestic pulses sector.[no_toc]
India Developing Indigenous High-Speed Bullet Trains
Published On Apr 17, 2024

India has begun developing an indigenous bullet train that will surpass speeds of 250
kilometres per hour (kmph), making it faster than any existing train on the Indian Railways
network.
About Vande Bharat Platform
In the global context, high-speed trains are defined as those capable of traveling at
speeds exceeding 250 kmph, such as the French TGV and the Japanese Shinkansen. The
Shinkansen E5 series bullet trains, which India plans to deploy on the Mumbai-
Ahmedabad route, can reach speeds of up to 320 kmph.
Key Facts about The Vande Bharat Express in India:
The Vande Bharat Express, also known as Train 18, is an indigenous electric multiple
unit (EMU) train developed by the Integral Coach Factory (ICF) in Chennai.
It is a semi-high speed train with a maximum operational speed of 160 kmph,
although it has been tested at speeds up to 180 kmph.
The first Vande Bharat Express was inaugurated by Prime Minister Narendra Modi on
15 February 2019, running between New Delhi and Varanasi.
As of April 2023, there are 23 operational Vande Bharat Express trains connecting
various cities across India, such as New Delhi, Varanasi, Mumbai, Ahmedabad,
Chennai, and Hyderabad.
The Vande Bharat Express features several modern amenities, including air-
conditioned coaches, onboard Wi-Fi, GPS-based passenger information system,
automatic doors, and bio-vacuum toilets.
The train is designed to accelerate from 0 to 100 kmph in just 52 seconds and has a
regenerative braking system that can save up to 30% of electrical energy.
The coaches are manufactured using stainless steel, making them lighter and more
energy-efficient compared to conventional coaches.
The Vande Bharat Express has an aerodynamic design and is equipped with a driver-
guard communication system, making it safer and more efficient.
In the Union Budget 2022-23, Finance Minister Nirmala Sitharaman announced that
400 new Vande Bharat trains would be manufactured and introduced over the next
three years.
The Vande Bharat Express has been well-received by passengers for its comfort,
speed, and modern amenities, and has become a symbol of India’s progress in the
rail sector.

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Manufacturing Technology For Project

The Vande Bharat trains are manufactured by the Integral Coach Factory (ICF) in Chennai.
The made-in-India bullet trains will operate on the recently announced north, south, and
east corridors. These corridors will utilize more Indian technology and domestic
manufacturing, complementing the western corridor developed in collaboration with
Japan.
Mumbai-Ahmedabad High Speed Rail Project
India is currently relying on Japanese technology for the bullet trains that will operate on
the Ahmedabad to Mumbai line, which is currently under construction. The Japan
International Cooperation Agency (JICA) is providing a soft loan of approximately ₹40,000
crore for the Mumbai-Ahmedabad High Speed Rail project, with the total project cost
exceeding ₹1.08 lakh crore.
The National High Speed Rail Corporation Limited (NHSRCL), responsible for
implementing India’s first bullet train project, recently announced the completion of 300
km of pier work. The land acquisition process for the entire 508 km stretch was finalized in
January 2024.
About The National High Speed Rail Corporation Limited (NHSRCL)
The National High Speed Rail Corporation Limited (NHSRCL) is a government-owned entity
responsible for implementing India’s first bullet train project between Mumbai and
Ahmedabad.
Established in 2016 under the Companies Act, 2013
Mandated to develop, construct, and operate high-speed rail projects in India
Implementing the 508 km Mumbai-Ahmedabad High Speed Rail Corridor
Utilizing Japanese Shinkansen technology and funding from the Japan International
Cooperation Agency (JICA)
Aims to revolutionize intercity travel and boost economic development
[no_toc]
CBDT Signs Record Number of 125 Advance Pricing Agreements in FY24
Published On Apr 17, 2024

The Central Board of Direct Taxes (CBDT) has achieved a significant milestone by entering
into a record number of 125 Advance Pricing Agreements (APAs) with Indian taxpayers in
the financial year 2023-24. This includes 86 Unilateral APAs (UAPAs) and 39 Bilateral APAs
(BAPAs), marking the highest ever APA signings in any financial year since the launch of
the APA programme.
What is Advance Pricing Agreements (APAs):
APAs are agreements between taxpayers and tax authorities that determine the transfer
pricing methodology for pricing the taxpayer’s international transactions for future years.
The APA programme aims to provide certainty to taxpayers in the domain of transfer
pricing by specifying the methods of pricing and determining the arm’s length price of
international transactions in advance for a maximum of five future years. Taxpayers also

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have the option to roll back the APA for four preceding years, providing tax certainty for a
total of nine years.
Growth in APA Signings
The number of APAs signed in FY24 represents a substantial 31% increase compared to
the 95 APAs signed in the preceding financial year, FY23. This growth demonstrates the
increasing popularity and effectiveness of the APA programme in providing tax certainty
to businesses operating in India.
With the addition of 125 APAs in FY24, the total number of APAs signed since the launch of
the APA programme has reached 641. This includes 506 UAPAs and 135 BAPAs. The
consistent growth in the number of APAs signed each year highlights the success of the
programme in addressing transfer pricing disputes and providing a stable tax
environment for multinational enterprises.
International Collaborations with various Partners
The CBDT has successfully signed BAPAs with several of India’s treaty partners, including
Australia, Canada, Denmark, Japan, Singapore, the United Kingdom, and the United
States. These agreements are a result of mutual understanding and collaboration
between the Indian tax authorities and their foreign counterparts, ensuring a coordinated
approach to transfer pricing and the avoidance of double taxation.
Benefits of the APA Programme
The APA programme offers several benefits to taxpayers, most importantly,
providing tax certainty and avoiding double taxation.
By entering into an APA, taxpayers can have a clear understanding of the pricing
methods and the arm’s length price for their international transactions, reducing the
risk of transfer pricing disputes. BAPAs provide an additional layer of protection by
ensuring that the taxpayer is not subjected to double taxation in the event of a
transfer pricing dispute.
The programme has also contributed significantly to the Indian government’s efforts
to promote ease of doing business, especially for multinational enterprises with
numerous cross-border transactions within their group entities.
Contribution to Ease of Doing Business
The APA programme has been instrumental in supporting the Government of India’s
efforts to promote ease of doing business in the country. By providing a transparent and
predictable tax environment, the programme has helped attract foreign investment and
encouraged multinational enterprises to expand their operations in India.
The success of the APA programme in India has been recognized globally, with many
countries seeking to emulate its model. The CBDT’s commitment to the programme and
its continuous efforts to streamline the APA process have been widely appreciated by the
international business community.[no_toc]
Indians Permitted to Hedge Gold Price Risk Overseas Markets
Published On Apr 16, 2024

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Reserve Bank of India (RBI) has allowed Indian residents to hedge their gold price risk on
recognised exchanges in the International Financial Services Centre (IFSC). Governor
Shaktikanta Das announced the decision during the Monetary Policy Committee (MPC)
meeting where the repo rate was increased by 35 basis points to 6.25 per cent.
What is Gold Hedging?
In the context of business, particularly in the gold industry, hedging is a strategy used to
minimize the risk of potential losses due to fluctuations in the market price of gold. Gold
producers, traders, and investors may employ various hedging techniques to protect
themselves against adverse price movements and ensure a more stable cash flow.
Examples of hedging strategies in the gold business include:
Forward contracts
A gold mining company might enter into a forward contract, agreeing to sell a
specific amount of gold at a predetermined price on a future date. This locks in the
selling price, providing protection against a potential drop in gold prices.
Options
Gold traders can purchase put options, giving them the right, but not the obligation,
to sell gold at a specific price (strike price) by a certain date. This helps limit potential
losses if gold prices fall below the strike price.
Futures contracts
Gold investors can buy or sell gold futures contracts, which are agreements to
purchase or sell a specific amount of gold at a predetermined price on a future date.
Futures can be used to hedge against price volatility and manage risk.
Current Rule on Gold Hedging
Prior to this approval, resident entities in India were not permitted to hedge their
exposure to gold price risk in overseas markets. This new decision by the RBI opens
opportunities for Indian residents to hedge their positions against price fluctuations in
global markets.
Benefits of Gold Hedging for Indian Residents
The approval to hedge gold on recognised exchanges in the IFSC will benefit Indian
residents, particularly those involved in the gold import and export industry. By being able
to hedge their gold price risk, players in the industry can protect themselves against
unfavourable price movements and currency fluctuations. This approval is also expected
to increase price competitiveness in the Indian jewellery industry, as it enables businesses
to manage their exposure to gold prices more effectively.[no_toc]
Government to Establish Cotton Test Labs in 6 States for Kasturi Cotton
Published On Apr 15, 2024

The central government is planning to establish dedicated testing labs for high-grade
Kasturi cotton in six states as part of a push to promote the Indian cotton brand globally.
Currently, the certification of Kasturi cotton is conducted through a limited number of
NABL-accredited labs, and the government aims to enhance the quality standards and
global acceptance of Indian textiles through this initiative.
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The Six States For Dedicated Testing Labs

The dedicated testing labs for Kasturi cotton will be set up in Maharashtra, Tamil Nadu,
Haryana, Punjab, Gujarat, and Karnataka. These labs will operate in convergence with the
Bureau of Indian Standards’ (BIS) testing facilities to ensure alignment with national
quality standards. The purpose of establishing these labs is to ensure the premium quality
of Kasturi cotton, with strict standards such as a 2% cap on trash content and 100%
traceability.
Objective
India aims to position Kasturi cotton as a global brand that can compete with renowned
cotton brands like Supima and Giza. By establishing dedicated testing facilities and
ensuring NABL accreditation, the government aims to boost the credibility of the testing
reports, thus enhancing the global acceptance of Indian textiles, including Kasturi cotton.
Focus Areas for Strengthening Textiles Ecosystem
In addition to setting up dedicated testing labs, the government has identified five key
focus areas to strengthen India’s textiles ecosystem. These include addressing skill gaps,
improving infrastructure through initiatives such as PM Mega Integrated Textile Regions
and Apparel (PM-MITRA) parks, implementing the production-linked incentive scheme,
promoting the Technical Textiles Mission, Samarth, and the National Handloom
Development Programme.
Investment and Job Creation
The textiles ministry aims to attract ₹95,000 crore in investments that will create about
2.25 million new jobs in the next 4-6 years. This includes ₹25,000 crore in investments
through the production-linked incentive scheme and ₹70,000 crore through the PM-MITRA
parks scheme. By focusing on enhancing the overall quality standards of Indian textiles
and promoting Kasturi cotton as a global brand, the government aims to boost the
growth and competitiveness of the Indian textiles industry.
About Kasturi Cotton
Kasturi Cotton is a type of cotton known for its fine texture and high quality. It is primarily
grown in the regions of Andhra Pradesh and Tamil Nadu. The cotton is naturally white in
color and has good moisture-wicking properties, making it ideal for clothing and textiles.
Kasturi Cotton is also renowned for its durability and softness, making it a popular choice
for premium textiles around the world. Its cultivation requires specific climate conditions
and careful harvesting techniques to maintain its quality.
About Bureau of Indian Standards
The Bureau of Indian Standards (BIS) is the national standards body of India, established
in 1986. It develops, maintains, and promotes standards to ensure the quality and safety
of products, processes, and services. BIS is a founding member of the International
Organization for Standardization (ISO) and plays a crucial role in facilitating international
trade by ensuring product conformity with standards. It certifies products through the ISI
mark, a mark of quality, and conducts testing and certification activities. BIS also oversees

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the National Building Code of India.

About NABL accreditation
NABL accreditation stands for National Accreditation Board for Testing and Calibration
Laboratories. It is a quality assurance scheme for testing and calibration laboratories in
India. Laboratories that are accredited by NABL demonstrate technical competence and
reliability of their testing and calibration results. The accreditation process involves
rigorous evaluation of the laboratory’s quality management system, technical
competence, and proficiency of staff. NABL accreditation helps laboratories to enhance
their credibility, competence, and competitiveness in both national and international
markets.[no_toc]
UPI Rule Change: Money in PPI Wallets Can Be Spent Using Any UPI
Published On Apr 13, 2024

Unified Payments Interface (UPI) and wallets have become an integral part of our daily
lives in recent years, thanks to the efforts of companies like Paytm, PhonePe, and Amazon.
However, users have often complained about the limitation of using wallet money only
through the web or mobile application provided by the prepaid payment instrument (PPI)
issuer.
To address this issue, the Reserve Bank of India (RBI) has proposed allowing the linking of
PPIs with third-party UPI applications.
What are Prepaid Payment Instruments (PPIs)?
Prepaid payment instruments or PPIs are instruments that can be used to make payments
against the monetary value stored in them. These can be wallets or cards, which users can
load with a certain amount and use for making payments through UPI or online
transactions.
PPIs operate independently of a user’s bank account, and when a payment is made using
a PPI, the money is deducted from the associated prepaid account. Until now, wallets
could only be used to make UPI payments by using applications provided by the same PPI
issuer.
RBI’s New Rule for Linking PPIs with Third-Party UPI
On April 5, 2024, RBI governor Shaktikanta Das announced a new rule permitting the
linking of PPIs through third-party UPI applications. This will enable PPI holders to make
UPI payments like bank account holders, providing more flexibility to PPI users.
Impact on UPI Users
The new RBI rule will bring about significant changes for UPI users. Customers will be able
to use any of their UPI apps to access any of their wallets, even if the wallet and the UPI
app belong to different companies. This means that PPI wallet holders will no longer be
completely dependent on the issuer of the PPI wallet.
Customers can now use their wallet balance seamlessly on other UPI-enabled apps,
expanding its utility beyond the wallet’s platform. For example, if a user has a PhonePe
Wallet with an outstanding balance, they can access the balance through any other third-

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party UPI app, not just the PhonePe app. Money kept in wallets like PhonePe, Amazon Pay,
and Paytm can be accessed through any third-party UPI application.[no_toc]
HDFC Bank opens branch in Lakshadweep's Kavaratti Island
Published On Apr 11, 2024

HDFC Bank has become the first private sector bank to establish a branch in Kavaratti
Island, part of the Union Territory of Lakshadweep. The bank aims to improve banking
infrastructure in the region by offering a variety of services, with a focus on personal and
digital banking.
This move is expected to benefit the residents of the island by providing easier access to
banking facilities.
HDFC Bank
HDFC Bank, one of India’s largest private sector banks, was incorporated in 1994 and
commenced operations in 1995. Promoted by Housing Development Finance Corporation
Limited (HDFC), the bank offers a wide range of banking services, including personal,
business, and corporate banking. With a network of 6,342 branches and 18,130 ATMs
across India, HDFC Bank has maintained a strong financial position and asset quality.
Kavaratti Island
Kavaratti Island is the capital of the Union Territory of Lakshadweep. Located in the
Arabian Sea, it is known for its pristine beaches, turquoise lagoons, and vibrant coral
reefs. The island is a popular tourist destination, offering activities like snorkelling, scuba
diving, and kayaking. Kavaratti is also home to the Ujra Mosque, one of the oldest mosques in
the region. The island’s economy relies primarily on fishing, coconut cultivation, and
tourism.
Union Territory of Lakshadweep
The Union Territory of Lakshadweep is an archipelago of 36 islands in the Arabian Sea,
located off the southwestern coast of India. It is the smallest Union Territory of India, with a
total area of 32 square kilometers. The islands are known for their pristine beaches,
crystal-clear waters, and rich marine life, making them a popular tourist destination.
Lakshadweep is also home to a predominantly Muslim population, with fishing and
coconut cultivation being the main occupations.[no_toc]
SWAMIH Fund Helps in Completion of 28,000 Homes Since 2019
Published On Apr 09, 2024

The Special Window for Affordable and Mid-Income Housing (SWAMIH) Fund, backed by
the central government, has played a crucial role in the completion of over 28,000 homes
since its inception in 2019. The fund, managed by SBICap Ventures Ltd, has also
contributed to the growth of various ancillary industries in the real estate and
infrastructure sector.
Recent Context
The real estate sector in India has been grappling with challenges such as liquidity crunch,
project delays, and stalled projects. The SWAMIH Fund was created to provide last-mile

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funding to stalled housing projects, with the aim of reviving the sector and ensuring
timely delivery of homes to buyers.
Impact on Home Completions
According to the National Real Estate Development Council (NAREDCO), the SWAMIH Fund
has successfully helped in the completion of over 28,000 homes across various projects
since its inception in 2019. The fund has provided much-needed financial support to
developers, enabling them to complete stalled projects and deliver homes to buyers.
Projected Delivery of 60,000 Homes
The SWAMIH Fund is projected to facilitate the delivery of another 60,000 homes over the
next three years. This projection highlights the fund’s continued commitment to
supporting the real estate sector and ensuring that more homebuyers receive possession
of their properties in a timely manner.
Unlocking Liquidity in Ancillary Industries
The SWAMIH Fund has not only helped in the completion of homes but has also played a
critical role in the growth of various ancillary industries in the real estate and
infrastructure sector. According to NAREDCO, the fund has successfully unlocked liquidity
of more than ₹35,000 crore in these industries.
The ancillary industries that have benefited from the SWAMIH Fund include construction
materials, cement, steel, and other related sectors. The infusion of liquidity has helped
these industries to sustain their operations, maintain employment, and contribute to the
overall growth of the economy.
Reduction in Housing Inventory Overhang
A joint report by property consultant Anarock and industry body NAREDCO has found that
the housing inventory overhang has seen a significant drop over the last 10 years. The
pan-India housing inventory overhang stood at 15 months at the end of 2023, a
substantial reduction from the peak of 41 months in 2017.
The reduction in housing inventory overhang can be attributed to various factors,
including the SWAMIH Fund’s support in completing stalled projects and the increased
demand for housing in the post-pandemic period.[no_toc]
Cochin Shipyard Signs Master Shipyard Repair Agreement with U.S. Navy
Published On Apr 09, 2024

Cochin Shipyard Limited (CSL), a state-run shipbuilding facility in Kochi, has become the
third Indian shipyard to enter into a Master Shipyard Repair Agreement (MRSA) with the
U.S. Navy. This agreement enables CSL to repair U.S. Navy ships, following in the footsteps
of Larsen & Toubro (L&T) and Mazagon Dock Shipbuilders Ltd. (MDL).
Recent Context
India and the U.S. have been actively seeking to expand cooperation in ship repair and
maintenance, with the aim of transforming India into a regional hub for these services.
The signing of the MRSA by Cochin Shipyard Limited is a significant step towards achieving
this goal.

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Details of the Agreement

The MRSA signed by Cochin Shipyard Limited is a non-financial agreement. This
agreement will facilitate the repair of U.S. Naval vessels under the Military Sealift
Command at CSL. The shipyard underwent a detailed evaluation process and capability
assessment by the U.S. Navy – Military Sealift Command before being qualified to enter
into the MRSA.
Benefits for India and the U.S.
The expansion of cooperation in ship maintenance and repairs is mutually beneficial for
both India and the U.S. Indian shipyards gain business opportunities and expertise, while
the U.S. Navy gains access to alternative options for smaller repairs of its ships without
having to travel far, thereby reducing turnaround time and costs.
Previous Agreements
L&T shipyard in Kattupalli near Chennai was the first Indian shipyard to sign the MRSA in
July 2023. In March 2024, a U.K. naval ship arrived at Kattupalli for repairs, marking the
first such engagement under the agreement.
Commitment to Advancing India as a Maintenance and Repair Hub
In a joint statement issued after bilateral talks between Prime Minister Narendra Modi and
U.S. President Joe Biden in September 2023, both sides recommitted to advancing India’s
emergence as a hub for the maintenance and repair of forward-deployed U.S. Navy assets,
as well as other aircraft and vessels.
U.K.’s Littoral Response Group Deployment
The U.K.’s Littoral Response Group (LRG) arrived in Chennai, as the first engagement of its
deployment to the Indo-Pacific region. The Royal Fleet Auxiliary Argus and RFA Lyme Bay
conducted maritime exercises with the Indian Navy and will undergo essential
maintenance at L&T shipyard, further demonstrating the growing cooperation in ship
maintenance and repairs between India and its partners.[no_toc]
Government Releases Guidelines for Green Hydrogen Use in Transport Sector
Published On Apr 08, 2024

Recently, Indian Government has announced a Rs. 496 crore scheme (until 2025-26) to
support pilot projects testing the viability of green hydrogen as a fuel for cars and heavy
vehicles. The scheme, under the Ministry of New and Renewable Energy (MNRE), aims to
validate the technical feasibility, evaluate economic viability, and demonstrate safe
operation of hydrogen-powered vehicles and refuelling stations.
Objectives of the MNRE Scheme
The main objectives of the MNRE scheme are:
Validation of technical feasibility and performance of green hydrogen as a
transportation fuel
Evaluation of the economic viability of green hydrogen-powered vehicles
Demonstration of safe operation of hydrogen-powered vehicles and refuelling
stations

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Indian Industry Efforts

Major Indian commercial vehicle manufacturers such as Tata Motors, Volvo Eicher, and
Ashok Leyland are ramping up research and development efforts and building
manufacturing capacities to develop hydrogen-powered trucks and buses. Indian energy
companies are also working on scaling up green hydrogen production and reducing costs
to make it competitive with other fuels.
Benefits for India
India stands to gain significantly from the large-scale adoption of green hydrogen as a
vehicular fuel, with potential benefits including:
Reduction of emissions to help combat global warming and climate change
Curbing pollution and meeting climate goals
Reducing costly fossil fuel imports
Becoming a global hub for the production and export of green hydrogen
Types of Hydrogen
Grey Hydrogen: Produced from natural gas through energy-intensive processes,
with high carbon emissions. Currently, most hydrogen produced for industrial
consumption is grey hydrogen.
Blue Hydrogen: Sourced from fossil fuels, but byproducts such as carbon monoxide
and carbon dioxide are captured and stored, making it better than grey hydrogen.
Green Hydrogen: Produced using electricity generated from renewable sources
such as wind or solar to electrolyse water. It is considered an end-to-end green fuel
with water or water vapour as the only byproduct.
Hydrogen Fuel Cell Vehicles
Hydrogen can be used in vehicles through two main technologies:
1. Hydrogen Internal Combustion Engine (ICE) Vehicles: Utilize hydrogen through
combustion, similar to diesel and petrol cars, but without carbon emissions.
2. Hydrogen Fuel Cell Electric Vehicles (FCEVs): Convert hydrogen stored in a high-
pressure tank into electricity using a fuel cell, with water as the only byproduct.
FCEVs are typically lighter than battery electric vehicles (BEVs) due to the lower
weight of fuel cells compared to EV batteries.
Challenges
Despite the promise of green hydrogen, several challenges need to be addressed:
1. High production costs
2. Storage and transportation difficulties
3. Lack of infrastructure for refuelling stations
4. Need for specialized high-pressure storage cylinders
5. Safety concerns due to hydrogen’s flammability
6. Competition from advancements in battery technologies for electric vehicles
[no_toc]

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RBI Decides to Keep Policy Rates Unchanged

Published On Apr 06, 2024

The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI), which met
recently, decided to keep the repo rate – the main policy rate – unchanged at 6.5 per cent
and maintain the policy stance of ‘withdrawal of accommodation’. Both the decisions were
taken in a majority 5:1 voting by the six-member MPC, headed by RBI Governor
Shaktikanta Das.
Reasons for keeping rates unchanged
The RBI Governor cited several reasons for keeping the policy rates unchanged:
Economic outlook: The overall economic outlook remains upbeat despite some
challenges in specific sectors. While there has been broad-based moderation in
inflation, higher food inflation keeps headline numbers elevated. However, benign
core inflation will comfort RBI as strong growth has mainly remained non-
inflationary.
Inflation concerns: Governor Das emphasized that uncertainties in food prices
continue to pose challenges, and the MPC remains vigilant to the upside risks to
inflation that might derail the path of disinflation. He expressed the need for CPI
inflation to continue to moderate and align to the target on a durable basis.
GDP growth forecast: The RBI has retained the GDP growth forecast at 7 per cent in
FY25 as against 7.6 per cent growth projected by the NSO for FY24. It has projected a
growth of 7.1 per cent in the first quarter of FY25, 6.9 per cent in Q2 and 7 per cent
each in Q3 and Q4. Headwinds from geopolitical tensions, volatility in international
financial markets and geo-economic fragmentation pose risks to the outlook.
Inflation forecast
The RBI has projected a retail inflation of 4.5 per cent in fiscal 2024-25. It has projected an
inflation of 4.9 per cent in Q1, 3.8 per cent in Q2, 4.6 per cent in Q3 and 4.5 per cent in Q4
of FY25. Frequent and overlapping adverse climate shocks pose key upside risks to the
outlook on international and domestic food prices. Sustained inflationary trend in non-
perishable food categories, such as pulses and spices, raises concerns about the potential
broadening of price pressures due to their inherent stickiness.
Impact on lending and deposit rates
Interest rates on loans and deposits are largely likely to remain unchanged as of now. All
external benchmark lending rates that are linked to the repo rate will not rise. It will
provide some relief to borrowers as their equated monthly instalments (EMIs) will not
increase. However, as banks are under pressure on the deposit growth front due to
competition from mutual funds for funds, deposit rates are likely to rise in certain buckets.
Additional facts
The repo rate is the rate at which the RBI lends money to commercial banks in the
event of any shortfall of funds. It is used by the RBI to control inflation.
The current repo rate of 6.5% is the highest since August 2018, when it was at 6.5%.

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The RBI has raised the repo rate by a cumulative 250 basis points since May 2022 in
the fight against inflation.
The consumer price index (CPI) based retail inflation, which the RBI factors in while
arriving at its monetary policy, is showing signs of moderation but still remains
above the central bank’s upper tolerance level of 6%.
In February 2023, retail inflation stood at 6.44%, compared to 6.52% in January.
About Monetary Policy Committee
The Monetary Policy Committee (MPC) is a six-member committee within the Reserve
Bank of India (RBI) responsible for formulating monetary policy. Established in 1998, the
MPC aims to maintain price stability while supporting economic growth. The committee
meets at least four times a year and consists of the RBI Governor, Deputy Governor, one
official nominated by the RBI Board, and three external members appointed by the
Government of India. The MPC’s decisions are based on a majority vote.[no_toc]
Issue of State Governments Power to Levy Excise Duty on Industrial Alcohol
Published On Apr 06, 2024

The Supreme Court is currently hearing arguments on whether state governments have
the power to regulate and control the sale, distribution, pricing and other factors relating
to ‘industrial’ alcohol. The case has been referred to a 9-judge Bench headed by Chief
Justice of India D Y Chandrachud.
Background
The case originated from a notification issued by the Uttar Pradesh government in 1999,
introducing a 15% fee for any sale made to licence holders under the UP Excise Act, 1910 for
“alcohol used directly or…as solvent for vehicles and appear[ing] in the final product to
some extent”.
This was challenged by a motor oil and diesel distributor who claimed that the Centre
exercised exclusive jurisdiction over industrial alcohol as per Section 18-G of the Industries
(Development and Regulation) Act, 1951 (IDRA).
Constitutional provisions
The case revolves around the interpretation of the following entries in the Seventh
Schedule of the Constitution of India:
Entry 8 in the State List: This entry gives states the power to legislate on the
production, manufacture, possession, transport, purchase and sale of “intoxicating
liquors”.
Entry 52 of the Union List and Entry 33 of the Concurrent List: These entries
mention industries, whose control is “declared by Parliament by law to be expedient
in public interest”. Notably, subjects in the Concurrent List can be legislated upon by
both states and the Centre, but where a central law exists, the state law cannot be
repugnant to it.
Industrial alcohol is listed in the Industries (Development and Regulation) Act,
1951 (IDRA).

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Previous Supreme Court judgments

In 1989, a 7-judge Constitution Bench in ”Synthetics & Chemicals Ltd v. State of Uttar
Pradesh” held that states’ powers, as per Entry 8 of the State List, were limited to
regulating “intoxicating liquors” which are different from industrial alcohol. However, the
court did not consider its prior Constitution Bench decision in ”Ch Tika Ramji v State of UP”
(1956) where five judges upheld a legislation enacted in UP to regulate the supply and
purchase of sugarcane, despite Section 18-G of the IDRA giving the Centre exclusive
jurisdiction over regulation of the sugar industry.
Arguments before the court
Senior Advocate Dinesh Dwivedi, appearing for the State of UP, argued that the phrase
“intoxicating liquors” in Entry 8 of the State List includes “all liquids containing alcohol”. He
also submitted that without an order under Section 18-G of the IDRA, the control over
regulation of industrial alcohol would vest with the states.[no_toc]
India's Market Cap Likely to Hit $10 Trillion by 2030
Published On Apr 05, 2024

India’s stock market capitalization is currently the fifth largest globally at $4.5 trillion,
according to a report titled ‘Recap 2024. Crystal Gaze 2025’ by financial conglomerate
Pantomath Group. The report predicts that India’s market cap is likely to hit $10 trillion by
2030, driven by strong economic growth and favorable government policies. This would
make India the third-largest economy in the world by 2027.
Current Global Market Cap Rankings
As of 2024, the top five countries by market capitalization are:
1. United States: $44.7 trillion
2. China: $9.8 trillion
3. Japan: $6 trillion
4. Hong Kong: $4.8 trillion
5. India: $4.5 trillion
India’s Equity Market Performance in FY2024
In the fiscal year 2023-24, the Indian equity market witnessed a phenomenal
performance, with benchmark indices soaring to unprecedented all-time highs:
Nifty: Scaled a milestone of 22,526.60
Sensex: Reached a peak of 74,245.17
NSE Midcap 100: Advanced around 60.06%
NSE Smallcap 250: Advanced around 63.07%
India emerged as one of the best-performing markets in the last four years, ending a
time-wise correction in March 2023 and continuing its strong momentum.
Factors Driving Market Growth
Several factors are expected to contribute to India’s market cap growth:
1. Strong corporate earnings: Indian companies are expected to continue strong
performance, driven by a robust domestic demand environment, positive

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macroeconomic factors, and private capex revival.

2. Sector-specific growth: Sectors like Auto and Auto Ancillary, Cements, Defence,
Railways, Consumer Durables, Energy, Logistics, FMCG, Capital Goods and
Engineering, Infrastructure, Construction, Banking, and Financials are expected to
outperform in the rally ahead.
Impact of Lok Sabha Elections and RBI Interest Rate Cut
The report suggests that the focus in FY2025 will be on the Lok Sabha elections, with the
expectation that the ruling government will retain power and continue its economic
reforms and policies. This outcome would instill confidence in both domestic and global
investors, encouraging long-term investments in the Indian equity markets.
Emerging Industries Poised for Investment-Led Growth
The report identifies several emerging industries that are poised for investment-led
growth in 2024:
Battery energy storage solutions
Green hydrogen
Biotechnology
AVGC (animation, visual effects, gaming, comics)
Semiconductor chip manufacturing, assembly, and design
These industries have been on a hot streak in 2024, as foreign direct investment (FDI)
policies have relaxed in recent years, and production-linked incentive (PLI) schemes have
promoted industry-wise capacity building.[no_toc]
22 New Products Added to Geographical Indication (GI) Registry
Published On Apr 01, 2024

In March 2024, the Geographical Indication (GI) registry of India added 22 new products
from the states of Assam, Uttar Pradesh, Tripura, and Meghalaya. These products are now
protected under the GI tag, which recognizes their unique qualities and geographical
origin.
Assam
The state of Assam saw the inclusion of 12 products in the GI registry:
1. Asharikandi terracotta craft
2. Pani Meteka craft
3. Sarthebari metal craft
4. Jaapi (bamboo headgear)
5. Mishing handloom products
6. Bihu dhol
7. Bodo Dokhona (traditional attire of Bodo women)
8. Bodo Gamsa (traditional dress of Bodo men)
9. Bodo Eri silk
10. Bodo Jwmgra (a traditional scarf)
11. Bodo Thorkha (a musical instrument)

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12. Bodo Sifung (a long flute)

Uttar Pradesh
Uttar Pradesh had five products added to the GI registry:
1. Banaras Thandai, a drink made by blending milk with a mix of nuts, seeds and spices
2. Banaras Tabla
3. Banaras Shehnai
4. Banaras Lal Bharwamirch
5. Banaras Lal Peda
Tripura
Two products from Tripura were granted GI tags:
1. Pachra-Rignai (traditional dress worn on special occasions)
2. Matabari Peda (a sweet preparation)
Meghalaya
Three products from Meghalaya were added to the GI registry:
1. Meghalaya Garo Textile weaving
2. Meghalaya Lyrnai Pottery
3. Meghalaya Chubitchi (alcoholic beverage)
About GI Registry
The Geographical Indication (GI) registry is a system that recognizes and protects
products with unique characteristics, qualities, or reputation associated with their
geographical origin. Established under the Geographical Indications of Goods
(Registration and Protection) Act, 1999, the GI registry grants legal protection to products,
preventing unauthorized use of the registered name. The GI tag helps preserve cultural
heritage, promote economic development, and assure consumers of the product’s
authenticity and quality.[no_toc]
Digital India Trust Agency (DIGITA)
Published On Mar 31, 2024

The Reserve Bank of India (RBI) is considering establishing a Digital India Trust Agency
(DIGITA) to combat the proliferation of illegal lending apps and curb growing cyber fraud.
This proposed agency aims to verify digital lending apps, maintain a public register of
verified apps, and promote transparency and accountability within the digital lending
sector.
Background
In recent years, India has witnessed a surge in fraudulent activities and unethical practices
in the digital lending sector. The RBI has taken various measures to address this issue,
including collaborating with the IT Ministry and Google to whitelist legitimate digital
lending apps and remove unauthorised ones from the Google Play Store.
Functions of DIGITA
Once established, DIGITA would be responsible for the following:
Verification of digital lending apps: DIGITA would vet digital lending apps to

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ensure compliance with RBI regulations and guidelines.

Maintaining a public register of verified apps: The agency would maintain a public
register of verified digital lending apps, making it easier for consumers to identify
legitimate apps.
Combating financial crimes: Apps lacking the verified mark from DIGITA would be
considered unauthorised for law enforcement purposes, serving as a crucial
checkpoint in combating financial crimes in the digital domain.
Collaboration with Google
The RBI has provided the IT Ministry with a list of 442 digital lending apps for Googles
whitelisting. From September 2022 to August 2023, Google removed over 2,200 digital
lending apps from its app store. Google now enforces a policy allowing only apps
published by RBI-regulated entities (REs) or in partnership with REs on the Play Store,
following requests from the RBI and the Department of Financial Services under the
Finance Ministry.
Current Status
As of March 2024, the RBI has not officially announced the establishment of DIGITA, and
the agency remains a proposed initiative.[no_toc]
What is the T+0 Trading Settlement Cycle?
Published On Mar 29, 2024

Recently, the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) have
introduced trading in the T+0 rolling settlement cycle in the equity segment on an optional
basis. This new settlement cycle allows for same-day settlement of trades, in addition to
the existing T+1 settlement cycle.
The Securities and Exchange Board of India (SEBI) has issued operational guidelines for
the launch of this shorter tenure settlement cycle.
What is the T+0 Trading Settlement Cycle?
The T+0 trading settlement cycle, also known as same-day settlement, is a facility for
clearing and settlement of funds and securities on the same day as the trade. Under this
cycle, the settlement of trades will happen on the same day after the closure of the T+0
market. If investors sell a share, they will get the money credited to their account the
same day, and the buyer will also get the shares in their demat account on the very day of
the transaction.
Benefits of T+0 Trade Settlement
The T+0 trade cycle is expected to bring several benefits to investors and the securities
market ecosystem:
Cost and time efficiency: The shortened settlement cycle will reduce the time and
cost associated with settling trades.
Transparency in charges: Investors will have better visibility of the charges
associated with their trades.
Stronger risk management: The T+0 cycle will strengthen risk management at

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clearing corporations and the overall securities market ecosystem.

Flexibility for investors: Investors will have faster pay-out of funds against
securities for sellers and faster pay-out of securities against funds for buyers,
allowing better control over their investments.
Enhanced market efficiency: The shorter settlement cycle will free up capital in the
securities market, enhancing overall market efficiency.
Securities Available for Trading in T+0 Settlement Cycle
The stock exchanges have announced a set of 25 scrips which are allowed for trading on
the T+0 settlement cycle. These include Ambuja Cements Ltd, Ashok Leyland Ltd, Bajaj
Auto Ltd, Bank of Baroda, Bharat Petroleum Corporation Ltd, Birlasoft Ltd, Cipla Ltd,
Coforge Ltd, Divi’S Laboratories, Hindalco Industries, The Indian Hotels Company Ltd, JSW
Steel Ltd, LIC Housing Finance, LTIMindtree Ltd, Samvardhana Motherson International
Ltd, MRF Ltd, Nestle India, NMDC Ltd, Oil & Natural Gas Corporation Ltd, Petronet LNG
Ltd, State Bank of India, Tata Communications Ltd, Trent Ltd, Union Bank of India, and
Vedanta Ltd.
Eligibility for Participation in T+0 Settlement Cycle
All investors are eligible to participate in the T+0 trade settlement cycle if they can meet
the timelines, process, and risk requirements as prescribed by the Market Infrastructure
Institutions (MIIs).
Trade Timings and Price Band
For the optional T+0 settlement cycle, there will be one continuous trading session from
09:15 AM to 1:30 PM. The settlement of funds and securities will be completed on the
same day by 4:30 PM. The price band in the T+0 segment will operate with a price band of
+100 basis points from the price in the regular T+1 market. This band will be recalibrated
after every 50-basis points movement in the underlying T+1 market.
Future Plans
SEBI has also proposed to introduce optional instant settlement at a later stage, further
reducing the settlement cycle and enhancing market efficiency.[no_toc]
Satellite-Based Toll Collection System in India
Published On Mar 28, 2024

Recently, Union Minister of Roads, Transport and Highways Nitin Gadkari announced
plans to introduce a satellite-based toll collection system for the country’s highways. This
innovative system aims to charge tolls based on the distance travelled by vehicles, directly
deducting the amount from users’ bank accounts. The move is expected to reduce toll
taxes, streamline journeys, and improve the overall efficiency of India’s highway
infrastructure.
Functioning
The proposed system will utilize the global navigation satellite system, including India’s
own GAGAN (GPS Aided GEO Augmented Navigation) satellite navigation system, which
has an accuracy of approximately 10 meters. An On-Board Unit (OBU) will be installed in

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vehicles to facilitate accurate mapping and toll calculation.

The system will use digital image processing and software algorithms to log the
coordinates of the entire length of the country’s national highways, assign toll rates, and
calculate the toll amount based on the distance travelled by each vehicle.
Challenges
The implementation of the satellite-based toll collection system faces several challenges:
1. Toll recovery in cases of non-payment or system manipulation
2. The need for nationwide implementation of Automatic Number-Plate Recognition
(ANPR) systems
3. Ensuring data security and privacy
4. Enforcing compliance through the use of gantries equipped with CCTV cameras
Integration with FASTags
FASTags, the radio frequency identification-based toll collection system made mandatory
by the government on February 16, 2021, will continue to operate alongside the new
satellite-based system. The OBUs are expected to complement rather than replace
FASTags, offering lower operational costs and enhanced efficiency.
Benefits
The satellite-based toll collection system offers several advantages:
Elimination of toll plazas, reducing congestion and streamlining the collection
process
Dynamic pricing adjustments to optimize revenue collection
Flexibility to implement tolling on all road categories
Addressing issues related to traffic diversion and toll evasion
Additional Facts
India has the second-largest road network in the world, spanning over 6.3 million
kilometers (as of 2023).
The country’s National Highways, which constitute about 2% of the total road
network, carry over 40% of the total traffic.
The government has been investing heavily in the development of highways and
expressways, with plans to expand the network to 2 lakh kilometers by 2025.
The adoption of electronic toll collection systems like FASTags has already reduced
congestion at toll plazas and improved revenue collection efficiency. The satellite-based
toll collection system is expected to further enhance the efficiency and transparency of the
toll collection process, contributing to the overall development of India’s logistics and
supply chain sectors.[no_toc]
What are Meme Coins?
Published On Mar 26, 2024

Meme coins are a unique category of cryptocurrencies that have gained significant
popularity in the digital currency space. These coins trace their origin to the growth of
meme culture on the internet and are often characterized by their lighthearted and

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comedic nature.
Definition and Characteristics
Meme coins, also known as “memetic tokens” or “community coins,” are digital currencies
created as a form of satire or humorous tribute to internet culture. They often feature
quirky names, logos, and branding that reference popular memes, jokes, or internet
phenomena.
Key characteristics of meme coins include:
Highly volatile nature, with extreme changes in value over short periods
Massive or uncapped supply, leading to very low values per token
Utilization of blockchain technology, often leveraging smart contracts on platforms
like Ethereum and Solana
Relatively easy creation process compared to traditional cryptocurrencies
Popular Meme Coins
Dogecoin (DOGE): One of the original and most prominent meme coins, created in 2013
as a joke to poke fun at mainstream cryptocurrencies. Dogecoin features the iconic Shiba
Inu dog meme and has a current circulating supply of 143.54 billion coins, trading at
around Rs 14.31 (as of [insert date]).
Shiba Inu (SHIB): Inspired by Dogecoin, Shiba Inu is another meme coin featuring the
same breed of dog as its mascot. Launched in 2020, SHIB has gained traction as an
alternative to Dogecoin and has a current circulating supply of 589,289.4 billion coins,
trading at around Rs 0.00248 (as of [insert date]).
Retik Finance (RETIK): A meme coin gaining attention for its inventive approach to
decentralized finance (DeFi). RETIK aims to unify traditional finance and DeFi by providing
accessible tools and services, such as virtual DeFi debit cards, enabling users to
incorporate cryptocurrency into their everyday transactions.
Dangers and Investment Considerations
While meme coins have gained popularity, they come with certain dangers and
investment considerations for crypto traders:
Speculation-driven: Meme coins are primarily driven by speculation and community
engagement, lacking fundamental value or unique use cases.
High volatility: The prices of meme coins can experience rapid fluctuations, making them
risky investments.
Lack of regulation: Meme coins operate in a largely unregulated space, increasing the
potential for fraud and manipulation.
Limited adoption: Meme coins may not have widespread adoption like leading
cryptocurrencies, limiting their practical utility.
Important Facts for Exams
The term “meme coin” was coined in reference to the Dogecoin cryptocurrency,
which was created as a joke based on the popular Doge meme featuring a Shiba Inu
dog.

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In May 2021, Dogecoin experienced a massive surge in price, reaching an all-time

high of nearly $0.74, driven largely by social media hype and celebrity endorsements.
Some mainstream companies, including Tesla and AMC, have shown openness to
accepting meme coins as currency, reflecting a growing trend in the crypto space.
[no_toc]
Bima Sugam Marketplace
Published On Mar 26, 2024

The Insurance Regulatory and Development Authority of India (IRDAI) has approved eight
principle-based regulations, including the highly anticipated Bima Sugam marketplace, in
its recent board meeting. The regulatory changes cover various aspects of the insurance
industry, such as rural and social sector obligations, motor Third-Party (TP) insurance,
corporate governance, and foreign reinsurers’ operations in India.
Bima Sugam Marketplace
The IRDAI (Bima Sugam – Insurance Electronic Marketplace) Regulations, 2024, aim to
establish a digital public infrastructure named Bima Sugam. The primary objectives of this
marketplace are:
Universalization and democratization of insurance
Empowering and safeguarding policyholders’ interests
Achieving the vision of “Insurance for all by 2047”
Bima Sugam will serve as a one-stop solution for all insurance stakeholders, including
customers, insurers, intermediaries, and agents.
Rural and Social Sector Obligations
Under the new regulations, the unit of measurement for rural obligations will now be the
gram panchayat. The scope of the social sector has been extended to cover cardholders
and beneficiaries under various schemes, ensuring a wider reach of insurance services to
the underprivileged sections of society.
Motor Third-Party Insurance
For Motor TP insurance, the unit of measurement will be the renewal of coverage for
goods and passenger-carrying vehicles, as well as tractors. This change is expected to
streamline the process of measuring compliance with Motor TP insurance requirements.
Corporate Governance for Insurers
The IRDAI (Corporate Governance for Insurers) Regulations, 2024, aim to establish a
robust governance framework for insurers by defining the roles and responsibilities of the
board and management. This is the first time that governance aspects under the existing
guidelines have been notified in the form of regulations, highlighting the importance of
governance in the functioning of an insurance company.
Insurance Products Regulations
The IRDAI (Insurance Products) Regulations, 2024, merge six existing regulations into a
unified framework. The objectives of these regulations are:
Enabling insurers to swiftly respond to evolving market demands

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Enhancing the ease of conducting business

Boosting insurance penetration
Foreign Reinsurers and Lloyd’s India
The IRDAI (Registration and Operations of Foreign Reinsurers Branches & Lloyd’s India)
Regulations, 2024, consolidate two existing regulations. These regulations aim to foster
the systematic development of the reinsurance sector in India by promoting orderly
growth and harmonizing the existing legal and regulatory framework.
Important Facts for Exams
IRDAI was established in 1999 as an autonomous, statutory body to regulate and
promote the insurance industry in India.
The Bima Sugam marketplace is expected to revolutionize the way insurance is
bought and sold in India, making it more accessible and transparent for consumers.
The new regulations replace 34 existing regulations, streamlining the regulatory
framework for the insurance industry.
The emphasis on corporate governance in the new regulations underscores the
importance of transparency and accountability in the insurance sector.
[no_toc]
Self-Regulatory Organisations (SROs) for Regulated Entities
Published On Mar 22, 2024

Self-Regulatory Organisations (SROs) are industry-led bodies that play a crucial role in
promoting and maintaining standards within a specific sector. In India, the Reserve Bank
of India (RBI) has released an omnibus framework for recognising SROs for its regulated
entities. This framework outlines the objectives, responsibilities, eligibility criteria, and
governance standards for SROs in the financial sector.
Objectives of SROs
The primary objectives of SROs, as per the RBI framework, include:
Promoting a culture of compliance among members by implementing a
comprehensive code of conduct
Acting as a collective voice for members in engagements with the RBI, government
authorities, and other regulatory bodies
Collecting and sharing relevant sectoral information with the RBI to aid in
policymaking
Encouraging research and development within the sector to foster innovation
Responsibilities of SROs
SROs have several key responsibilities towards their members and the regulator. These
include:
Framing and enforcing a code of conduct for members
Monitoring adherence to the code and compliance with regulatory instructions
Developing a uniform, reasonable, and non-discriminatory membership fee
structure

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Establishing a grievance redress, dispute resolution, and arbitration framework for

members
Offering counselling on restrictive, unhealthy, and detrimental practices
Promptly informing the regulator about any violations by members
Submitting an annual report to the RBI within three months of the completion of the
accounting year
Eligibility Criteria for SROs
To qualify as an SRO, an entity must meet the following criteria:
Be a not-for-profit company registered under Section 8 of the Companies Act, 2013
Have sufficiently diversified shareholding, with no entity holding 10% or more of its
paid-up share capital
Represent the sector and be fit and proper for the grant of recognition as an SRO
Possess or have the ability to create infrastructure to discharge SRO responsibilities
on a continuing basis
Governance Standards for SROs
The RBI framework emphasizes the importance of strong governance mechanisms for
SROs. Key governance standards include:
Focus on an independent board, transparency, and adherence to well-defined
processes
Putting in place well-defined and transparent processes for overseeing members’
activities
Establishing clear standards of conduct and consequences for violations (excluding
monetary penalties)
Developing standards for improving compliance culture and adherence to RBI rules
and regulations
Implementing suitable surveillance methods for effective sector monitoring
Devising standardised procedures for handling disputes among members
transparently
Membership Criteria
Membership in SROs is voluntary for all regulated entities. The RBI prescribes the
membership criteria for each category/class of regulated entities at the time of inviting
applications. The SRO should have a good mix of members at all levels to represent the
sector holistically. The minimum membership prescribed by the RBI should be attained
ideally at the time of application or within a timeline not exceeding two years from the
date of recognition.
Relationship with the Regulator
SROs are expected to act as allies of the RBI in ensuring better compliance with regulatory
guidelines, sector development, stakeholder protection, and early warning signal
detection. They should keep the RBI informed of sector developments, carry out assigned
work, and submit annual reports. The RBI reserves the right to order an audit of the SRO’s

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books and inspect them if deemed necessary.

Sector-Specific Guidelines
While the omnibus framework provides broad parameters for SROs, sector-specific
guidelines, such as the number of SROs and membership details, will be issued separately
by the respective departments of the RBI wherever a sectoral SRO is intended to be set up.
Existing SROs
Existing SROs already recognised by the RBI will continue to be governed by the terms and
conditions under which they were recognised, unless the new framework is specifically
extended to such SROs.[no_toc]
RBI State of the Economy Report (March 2024)
Published On Mar 20, 2024

The Reserve Bank of India (RBI) released its ‘State of the Economy’ report in March 2024,
providing insights into the country’s economic performance and outlook. The report,
authored by RBI staffers, including Deputy Governor M D Patra, highlighted the need for
monetary policy to remain in a risk-minimizing mode to guide inflation towards the 4%
target. It also underscored an upward trend in per capita income, citing data from the
Household Consumption Expenditure Survey (HCES).
Inflation and Monetary Policy
The report noted that the recurring incidence of short-amplitude food price pressures is
hindering a more rapid decline in headline inflation towards the 4% target. Despite the
softening of core inflation, which has been broad-based and among its lowest prints in the
series, food price pressures have capped the headline inflation’s downward trajectory.
The CPI readings for January and February 2024 showed that the winter easing of
vegetable prices was shallow and short-lived, while cereal prices maintained strong
momentum, and prices of meat and fish registered a surge. Consequently, the report
emphasized that monetary policy must remain in a risk-minimization mode, guiding
inflation towards the target while sustaining the momentum of growth.
Demand and Consumption
On the demand side, the report observed that private final consumption expenditure
remained low, despite the third quarter coinciding with the festival season. However,
shifts in per capita income indicate a robust demand outlook for premium consumer
businesses. The HCES information revealed that per capita spending on durables and
discretionary products has been rising in both rural and urban markets, with real per
capita income increasing 1.5 times since 2011-12 at a compound annual growth rate
(CAGR) of 4%.
The report also predicted moderate growth for the domestic fast-moving consumer goods
(FMCG) sector over the next six months, based on market research. It noted a contraction
in government final consumption during the October-December quarter.
Investment and Infrastructure
The report emphasized that aggregate demand in the third quarter of 2023-24 was driven

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by investment, with signs of a revival in the private capex cycle. High visibility of structural
demand and healthier corporate and bank balance sheets are likely to be catalysts for new
investments.
The current financial year is expected to witness the highest ever length of four-lane roads
being constructed, along with the highest ever length of speed or access-controlled
highways. This progress is on course to create a world-class road network by 2037.
Economic Growth Projections
Real GDP, which expanded at a six-quarter high rate in October-December 2023, was
powered by strong momentum, robust indirect taxes, and lower subsidies. The report was
bullish on economic growth, predicting it to be closer to 8% for the current financial year
(FY24), compared to the National Statistical Office’s (NSO’s) estimate of 7.6% (Second
Advance Estimate).
The report’s nowcast of real GDP growth for January-March 2024, seen in conjunction with
high-frequency indicators for the fourth quarter, suggests that the NSO’s estimate for the
full-year 2023-24 will be exceeded, and a rate closer to 8% may be achieved.
For the next financial year (FY25), statistical models projected a growth of 7.4%. The in-
house Dynamic Stochastic General Equilibrium (DSGE) model suggests that GDP growth is
likely to remain robust at 7.4% during 2024-25.
Inflation Outlook
The report projected that CPI inflation will average 4.4% during 2024-25, lower than the
5.4% projected for 2023-24, with most of the decline occurring in the first half of the next
financial year.
Important Facts for Exams
The State of the Economy report is authored by RBI staffers, including Deputy
Governor M D Patra, but the views expressed in the report do not necessarily reflect
the views of the central bank.
The Household Consumption Expenditure Survey (HCES) is a key source of
information on per capita income and spending patterns in India.
The Dynamic Stochastic General Equilibrium (DSGE) model is an economic modeling
technique used by central banks and other institutions to analyze and forecast
macroeconomic variables.
[no_toc]
Electoral Bonds Data
Published On Mar 16, 2024

The Election Commission of India (ECI) has released detailed data on electoral bonds,
following a directive from the Supreme Court. The information, sourced from the State
Bank of India (SBI), sheds light on the major purchasers of electoral bonds and the
political parties that have benefited from this controversial funding mechanism.
The ECI uploaded two separate lists on its website – one containing the names of donors
who purchased the bonds along with the dates and denominations of each transaction,

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and the other showing the political parties that encashed the bonds. The data pertains to
the period between April 1, 2019 and February 15, 2024, during which a total of 22,217
electoral bonds were purchased.
Future Gaming, Megha Engineering Top Donor List
Among the major corporate donors revealed in the data, two companies stand out for
their substantial contributions through electoral bonds. Future Gaming and Hotel Services
Private Limited, a little-known entity that is currently under the scanner of the
Enforcement Directorate (ED), emerged as the top purchaser of electoral bonds, with total
purchases of Rs. 1,368 crore.
The second-largest donor was Megha Engineering and Infrastructure Limited, a
Hyderabad-based company that has bagged several major government contracts in
recent years. Megha Engineering bought electoral bonds worth Rs. 966 crore during the
period covered by the data.
Other Prominent Donors
Other prominent corporate contributors include Vedanta Limited (Rs. 400 crore), the
Bharti Group (Rs. 247 crore), Essel Mining and Industries Limited (Rs. 224 crore), and DLF
Group (Rs. 170 crore). The data also shows significant purchases by Haldia Energy (Rs. 377
crore), Qwik Supply Chain Private Limited (Rs. 410 crore), and Keventer Foodpark Infra
Limited (Rs. 194 crore).
Apart from corporate entities, the electoral bonds data also reveals substantial
contributions by prominent industrialists and business leaders in their individual
capacities. Steel magnate Lakshmi Niwas Mittal purchased bonds worth Rs. 35 crore, while
Sunil Bharti Mittal’s three companies together bought bonds amounting to Rs. 246 crore.
BJP Biggest Beneficiary, Opposition Parties Allege Bias
On the beneficiary side, the Bharatiya Janata Party (BJP) emerged as the single-largest
recipient of donations through electoral bonds. According to an analysis by the
Association for Democratic Reforms (ADR), the BJP received Rs. 6,566 crore or 54.77% of
the total electoral bonds encashed between March 2018 and January 2024.
The Indian National Congress was a distant second, with Rs. 1,123 crore (9.37%), followed
by the Trinamool Congress with Rs. 1,092 crore (9.11%). Other major national and regional
parties that received significant contributions through electoral bonds include the Shiv
Sena, AIADMK, TDP, YSR Congress, DMK, JD(S), NCP, BJD, Samajwadi Party, and
AAP.[no_toc]
India's Retail Inflation Eases to 5.09% in February 2024
Published On Mar 15, 2024

India’s consumer price index (CPI)-based inflation eased to 5.09 percent in February 2024,
according to data released by the Ministry of Statistics and Programme Implementation.
Inflation Remains Within RBI’s Tolerance Range
The retail inflation rate had previously eased to 5.1 percent in January 2024 from 5.69
percent in December 2023. The recent numbers indicate that the target inflation has

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stayed within the Reserve Bank of India’s (RBI) tolerance level of 2-6 percent for six
consecutive months. However, it is worth noting that this marks the 53rd consecutive
week in which the headline number has exceeded the medium-target rate of 4 percent.
Rural and Urban Inflation
The rural inflation stood at 5.34 percent in February, unchanged from January and down
from 5.93 percent in December. Similarly, urban inflation for February eased marginally to
4.78 percent, compared to 4.92 percent in January.
Food and Beverage Inflation
The food and beverage sector recorded an inflation rate of 8.66 percent in February, up
from 8.3 percent in January 2024. This increase in food and beverage prices contributed to
the overall inflation rate.
Implications for Monetary Policy
The latest inflation data comes just weeks before the RBI’s Monetary Policy Committee
(MPC) is set to meet again on April 3-5. In the previous meeting on February 8, the rate-
setting panel left the policy repo rate unchanged at 6.5 percent for the sixth consecutive
time. The central bank’s latest forecast suggests that CPI inflation will average 5.0 percent
in the current quarter before easing to 4.0 percent in July-September. However, it is
expected to rise again to 4.7 percent in the first quarter of 2025.
Despite India’s policy rates being at their highest level in nearly eight years, economists
believe that the economy’s continued better-than-expected growth performance could
prompt the MPC to take its time in ensuring that inflation falls to acceptable levels on a
durable basis.
Core Inflation and Sequential Price Momentum
Core inflation, which excludes food and fuel prices, fell further to 3.3 percent in February
from 3.6 percent in January. The sequential price momentum was largely subdued in
February, with only the housing price index rising by 0.5 percent month-on-month. Other
groups in the CPI basket posted month-on-month increases in the range of 0.1-0.2
percent.
Outlook for March Inflation
Daily retail prices from the National Horticulture Board (NHB) and the Department of
Consumer Affairs indicate a continued decline in vegetable prices month-on-month in the
first two weeks of March. Additionally, prices of cereals and edible oils are also tracking
lower on a monthly basis. The recent reduction in LPG prices by Rs 100 per cylinder is
expected to reduce headline inflation by 0.1 percentage points in March.
India’s Industrial Production Grows 3.8% in January 2024
Industrial Output Growth
India’s industrial production grew by 3.8 percent in January 2024, according to official data
released by the National Statistical Office (NSO) on March 14. The growth in factory
output, measured in terms of the Index of Industrial Production (IIP), was lower compared
to the 5.8 percent expansion recorded in January 2023.

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Sectoral Performance
The manufacturing sector’s output grew by 3.2 percent in January 2024, down from 4.5
percent in the year-ago month. Mining production rose by 5.9 percent, while power
output increased by 5.6 percent in January this year.
Cumulative Growth
During the period from April 2023 to January 2024, the IIP grew by 5.9 percent compared
to a 5.5 percent expansion in the corresponding period of the previous year.

[no_toc]

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