Economy Current Affairs

Indian Economy Current Affairs, important for Competitive Exams.

RBI increase Repo Rate by a half percent to 5.9 percent

  • On 30 September 2022, Monetary Policy Committee of Reserve Bank of India decided to increase Repo Rate by a half percent to 5.9 percent, with immediate effect.
  • The RBI has raised the repo rate by 1.9 percent since May 2022.
  • Governor Shaktikanta Das said, the MPC decided by a majority of five members out of six to increase the policy repo rate.
  • The standing deposit facility (SDF) rate stands adjusted to 5.65 percent;
  • The marginal standing facility (MSF) rate, and the Bank Rate to 6.15 percent.
  • RBI has projected real GDP growth for 2022-23 at 7.0 percent. Earlier RBI projected GDP growth for 2022-23 at 7.2 percent.

Former Tata Sons chairman Cyrus Mistry died in road accident.

  • Former Tata Sons chairman Cyrus Mistry died in a road accident at Charoti in Palghar district of Maharashtra on 4th September.
  • Cyrus Pallonji Mistry was an Indian-born Irish businessman.
  • Local police said Mistry died when his Mercedes car rammed into a divider on a bridge on the Surya river at around 3.15 pm.
  • He was going from Ahmedabad to Mumbai. Mistry was accompanied by three other people in the car. Besides Mistry, one more person died in the car accident while two other injured have been admitted to the hospital.

Indian economy became the 5th largest economy in the world.

  • India has overtaken the United Kingdom (UK) to become the 5th largest economy in the world and now America, China, Japan, Germany are ahead of India.
  • According to the International Monetary Fund (IMF), India has made progress in becoming the 5th largest economy in the last 3 months of 2021.
  • According to GDP data from IMF, India has increased its growth in the 1st quarter. The Indian economy is projected to grow by over 7% in 2022.
  • On the basis of nominal cash as per dollar exchange rate, the size of the Indian economy has increased to $ 854.7 billion in the March quarter, compared to $ 816 billion of the Britain economy on the same basis.

Rakesh Jhunjhunwala, Veteran stock market investor passed away at age 62.

  • Veteran stock market investor Rakesh Jhunjhunwala passed away on 14th August at the age of 62.
  • Akasa Air – India’s newest budget carrier – was one of Rakesh Jhunjhunwala’s business ventures.
  • The airline started commercial operations in August with the 1st flight from Mumbai to Ahmedabad.
  • Jhunjhunwala, known as the Warren Buffett of India, was estimated to have a net worth of $5.8 billion. Jhunjhunwala started his journey in the stock markets while in college with a capital of just Rs.5,000.

Qns : Rakesh Jhunjhunwala passed away on 14th August 2022, Who was Rakesh Jhunjhunwala?

Ans : Rakesh Jhunjhunwala, known as the Warren Buffett of India, was estimated to have a net worth of $5.8 billion. Jhunjhunwala started his journey in the stock markets while in college with a capital of just Rs. 5000.

CBDC : Digital Currency of India to be introduced soon

Central Bank Digital Currency (CBDC)

A Central Bank Digital Currency (CBDC) is the legal tender to be issued by Reserve Bank of India (RBI) in a digital form. It is the same as a fiat currency and is exchangeable one-to-one with the fiat currency.

Reserve Bank (RBI) is engaged in the introduction of a Central Bank Digital Currency (CBDC). RBI has been exploring the pros and cons of introduction of CBDC in India. The design of CBDC needs to be in conformity with the stated objectives of monetary policy, financial stability and efficient operations of currency and payment systems.

Implementation of CBDC

The RBI is examining the appropriate design elements of CBDCs that could be implemented with little, or no disruption. The RBI proposes to adopt a graded approach to introduction of CBDC, going step by step through stages of
1. Proof of Concept
2. Pilots
3. Launch

Central Bank Digital Currency is Legal in India

The introduction of Central Bank Digital Currency (CBDC) has been announced in the Union Budget 2022-23. After that an appropriate amendment to the RBI Act, 1934 has been included in the Finance Bill, 2022. The Finance Bill, 2022 has been enacted, providing a legal framework for the launch of CBDC.

Reference : RBI Annual Report 2021 -2022 Released on 27 May 2022

Question: What is CBDC ?

Ans : Central Bank Digital Currency (CBDC) is a digital or virtual currency to be issued by RBI in India.

PNB MetLife launched India’s 1st dental health insurance plan

PNB MetLife India Insurance Company has launched India’s 1st dental health insurance plan.

It is the 1st insurance plan in India that covers fixed-benefit outpatient expenses & provides financial assistance with costs related to overall dental health. This launch reinforces PNB MetLife leadership in the industry with this one-of-a-kind, standalone, the dental health insurance plan that covers major dental procedures without the hassles of hospitalisation.

RBI has hikes the repo rate by 40 basis points to 4.40 per cent

Reserve Bank of India (RBI) has hiked the policy repo rate by 40 basis points, taking it to 4.40 per cent on 4 May 2922. The Monetary Policy Committee (MPC) decided to increase the policy repo rate under the Liquidity Adjustment Facility (LAF) by 40 basis points to 4.40 per cent with immediate effect. Therefore, the Standing Deposit Facility (SDF) rate stands adjusted to 4.15 per cent and the Marginal Standing Facility (MSF) rate and the Bank Rate to 4.65 per cent.

The Monetary Policy Committee also decided to remain accommodative while focusing on withdrawal of accommodation to ensure that inflation remains within the target going forward, while supporting growth. These MPC decisions are in consonance with the objective of achieving the medium-term target for Consumer Price Index (CPI) inflation of four per cent within a band of /- two per cent, while supporting growth.

India-UAE Comprehensive Economic Partnership Agreement, CEPA came into force on 1 May 2022.

India-UAE Comprehensive Economic Partnership Agreement, CEPA came into force on 1 May 2022. The agreement was signed between the two nations on 18 February 2022.

Secretary in Department of Commerce, B V R Subrahmanyam flagged off the first consignment of goods comprising jewellery products from India to UAE.

The ministry said, CEPA is expected to increase the total value of bilateral trade in goods to over USD 100 billion and trade in services to over USD 15 billion within five years.

India-UAE Comprehensive Economic Partnership Agreement.

Main Points :

  • India-UAE Comprehensive Economic Partnership Agreement, CEPA came into force on 1 May 2022.
  • CEPA is expected to increase the total value of bilateral trade in goods to over USD 100 billion and trade in services to over USD 15 billion within five years.

GST Revenue collection for April 2022 is Rs 1.68 lakh crore : All time high

The gross GST revenue collected in the month of April, 2022 is Rs 1,67,540 crore of which CGST is Rs  33,159 crore, SGST is Rs  41,793 crore, IGST is Rs  81,939 crore (including Rs  36,705 crore collected on import of goods) and cess is Rs  10,649 crore (including Rs  857 crore collected on import of goods).

The gross GST collection in April 2022 is all time high, Rs 25,000 crore more than the next highest collection of Rs. 1,42,095 crore, just last month.

Wealth Report 2022: India ranks 3rd in billionaire population globally

According to the latest edition of Knight Frank’s Wealth Report 2022, India ranks 3rd in terms of the largest number of billionaire population globally in 2021.

India 3rd ranks in terms of population of billionaires globally in 2021. The number of ultra-high-net-worth-individuals (UHNWIs) in India grew by 11% to 145 billionaires in 2021, the highest percentage increase. Asia Pacific (APAC) region. UHNWIs are individuals who have a net worth of US$30m or more (Rs 226 crore).

Top 5 countries with the largest number of billionaires in 2021:

United States 748
China 554
India 145
Germany 136
Russia 121