#rbi monetary policy 2020

[kgsupsccourses]

Important Current Affairs for UPSC 2024 Prelims

The Union Public Service Commission (UPSC) Civil Services Examination is one of the most challenging exams in India, and staying updated with current affairs is crucial for success, especially in the Prelims. With the UPSC 2024 Prelims approaching, aspirants are increasingly focusing on which current affairs topics are likely to be significant. Below is a guide to the most important areas you should concentrate on, with insights from Khan Global Studies.

1. Geopolitical Developments

International relations play a significant role in the UPSC Prelims, and 2023 has been a year of major geopolitical shifts. The evolving dynamics between major powers like the United States, China, and Russia, along with India's role in these global developments, are crucial. Key topics include the Russia-Ukraine conflict, its global impact, and India's stance on various international issues. Additionally, India's relations with neighboring countries, its role in multilateral organizations like the United Nations, BRICS, and G20, and participation in global summits are vital areas to focus on.

2. Environmental and Climate Issues

With increasing emphasis on sustainability and climate change, environmental issues have become a staple in the UPSC Prelims. The COP28 conference, the Intergovernmental Panel on Climate Change (IPCC) reports, and India's initiatives toward achieving its climate goals under the Paris Agreement are critical topics. Additionally, understanding the impact of natural disasters, new environmental policies, and biodiversity conservation efforts in India will be beneficial.

3. Economic Developments

The Indian economy has seen significant changes, especially in the post-pandemic recovery phase. Topics like inflation trends, fiscal policies, monetary policy changes by the Reserve Bank of India (RBI), and government initiatives like 'Make in India' and 'Atmanirbhar Bharat' are essential for the Prelims. Furthermore, recent developments in digital currency, economic reforms, and trade relations will likely be tested.

4. Social Issues and Government Schemes

Social issues such as healthcare, education, and gender equality continue to be relevant for the UPSC exam. Recent government schemes like PM Gati Shakti, PM-Poshan, and the National Education Policy (NEP) 2020, which are being implemented or modified, should be studied in detail. Additionally, awareness of social justice issues and government responses to them is important.

5. Science and Technology

Advancements in science and technology are always a hot topic in UPSC Prelims. Areas like space exploration, with India's missions by ISRO, developments in artificial intelligence, biotechnology, and renewable energy technologies, are all critical. The application of technology in governance, digital initiatives by the Indian government, and cybersecurity issues are also worth focusing on.

Conclusion

Preparing for the UPSC 2024 Prelims requires a comprehensive understanding of current affairs. While it is impossible to predict every question, focusing on the areas mentioned above will give you a strong foundation. Khan Global Studies provides tailored resources that help aspirants navigate these complex topics with ease, offering in-depth analysis and insights that go beyond mere facts, helping you build a critical perspective essential for the exam.

[gazetteweekly]

Digitalisation: A Double-Edged Sword for Consumers and Financial Systems, Says RBI Report

In its Report on Currency and Finance (RCF) for 2023–24, the Reserve Bank of India (RBI) highlighted the transformative yet challenging impacts of digitalisation on consumer behavior and financial systems. Released on Monday, the report underscores how the convenience and accessibility brought by digitalisation can also lead to impulsive spending, herd behavior, and heightened risks of data breaches.

Benefits and Risks of Digitalisation

Digitalisation undoubtedly enhances the ease with which consumers can access financial services. However, it also introduces new risks. The RBI report points out that the rapid spread of financial trends and choices through digital platforms can influence consumers to follow the crowd, leading to impulsive spending and herd behavior. This is particularly evident during market frenzies, where mass buying or selling of stocks can trigger similar actions from other consumers.

Moreover, the interconnected nature of the digital financial system can complicate financial stability. For instance, widespread withdrawal of deposits due to herd behavior could lead to bank runs or failures.

Data Breaches: A Growing Concern

The report also highlights the growing threat of data breaches. In 2023, the average cost of a data breach in India was $2.18 million, marking a 28% increase since 2020. Common attacks include phishing and the use of stolen or compromised credentials. These breaches pose significant risks to both consumers and financial institutions.

Implications for Monetary Policy

Digitalisation impacts inflation, output dynamics, and the transmission of monetary policy in various ways. The report suggests that if digitalisation shifts credit supply from regulated banks to less-regulated non-banks, it could dampen the effectiveness of monetary policy. As such, central banks must integrate digitalisation considerations into their models to ensure effective monetary policy and financial stability.

Proactive Measures and International Collaboration

The RBI has been proactive in leveraging the benefits of digitalisation while mitigating associated risks. Digitalisation holds the potential to boost India’s external trade in goods and services, particularly in modern services exports. It can also reduce the cost of international remittances, benefiting recipients through higher incomes or savings.

In a significant step towards enhancing cross-border payments, the RBI joined Project Nexus, aiming to interlink domestic Fast Payments Systems (FPS) across several countries, including Malaysia, the Philippines, Singapore, and Thailand. This follows the integration of India’s Unified Payments Interface (UPI) with Singapore’s PayNow, facilitating faster and more affordable remittances between the two nations. Similarly, an MoU with the Central Bank of UAE aims to link India’s UPI with UAE’s Instant Payment Platform (IPP).

The Rise of UPI

The report highlights the explosive growth of UPI, which has seen a tenfold increase in volume over the past four years. From 12.5 billion transactions in 2019–20 to 131 billion in 2023–24, UPI now accounts for 80% of all digital payment volumes in India. As of June 2024, UPI is recording nearly 14 billion transactions monthly, driven by 424 million unique users.

Future Outlook

Cross-border digital trade policies will be crucial in leveraging new opportunities and ensuring data security and cybersecurity. The internationalisation of the rupee is also progressing, supported by a comprehensive policy approach.

In summary, while digitalisation brings significant benefits, it also poses new challenges. The RBI’s report emphasizes the need for a balanced approach to harness its advantages while managing the associated risks to consumer behavior, financial stability, and data security.

[snehatathastu]

Why UPSC CSE Aspirants Should Prioritize Previous Year Questions!

"Learn from the Past, succeed in the Future”: Why UPSC CSE Aspirants Should Prioritize Previous Year Questions!

As the saying goes, "Success leaves clues," in the realm of UPSC CSE preparation, those clues are embedded in the PYQs.

Amidst the sea of strategies, there exists a golden rule that every serious aspirant must adhere to – solving Previous Year Question (PYQ) papers.

Practicing PYQs is not just a recommendation; it's a fundamental necessity for every aspirant.

Why is this super important? It's like getting an early glimpse into the thoughts of the UPSC examiner.

Ask yourself:

What patterns do I notice in these questions?

How does the examiner approach different topics?

Why are certain topics consistently highlighted every year?

Let’s explore why solving PYQs is so important. It's not just about looking back; it's about learning things that can help you succeed in the future.

Because it as a special pass to see what happens behind the scenes of the UPSC exam – understanding what examiners want and adjusting your preparation accordingly.

"How do insights from Previous Year Questions elevate your UPSC CSE preparation?"

Understand the Trends in UPSC Exams:

PRELIMS:

Take note of key topics in the economy, such as Inflation, Monetary Policy, and Exchange Rate.

 Ensure a comprehensive understanding of these three main topics and their associated sub-topics, as they are frequently asked in the exam.

The money multiplier in an economy increases with which one of the following?

(a) Increase in the cash reserve ratio

(b) Increase in the banking habit of the population

(c) Increase in the statutory liquidity ratio

d) Increase in the population of the country

The same question appeared in the prelims both in 2019 and then again in 2021.

While most of the times, repetition of various themes and their subtopics is a common phenomenon.

The Chairman of public sector banks are selected by the

(a) Banks Board Bureau

(b) Reserve Bank of India

(c) Union Ministry of Finance

(d) Management of concerned bank

This question was asked in the prelims of UPSC CSE 2019.

With reference to the ‘Banks Board Bureau (BBB)’, which of the following statements are correct?

The Governor of RBI is the Chairman of BBB.

BBB recommends for the selection of heads for Public Sector Banks.

BBB helps the Public Sector Banks in developing strategies and capital raising plans.

Select the correct answer using the code given below:

(a) 1 and 2 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

Similar question has been asked again in UPSC CSE Prelims of 2022.

MAINS:

In mains, its commonly seen that major theme from the syllabus for General studies and Optional, have been asked repeatedly.

For example, Separation of powers as a theme has been asked multiple times in the exam.

Judicial Legislation is antithetical to the doctrine of separation of powers as envisaged in the Indian Constitution. In this context justify the filing of large number of public interest petitions praying for issuing guidelines to executive authorities. (2020)

Do you think that constitution of India does not accept principle of strict separation of powers rather it is based on the principle of ‘checks and balance’? Explain. (2019)

Certain topics consistently appear in the Essay section every year. Aspirants should focus on preparing for these subjects as they present an accessible route to scoring well in the Mains Exam. Some of these themes include:

Democracy, Education, Women, Science and Technology.

HOW TO ANALYZE THE PREVIOUS YEAR QUESTIONS?

We've acknowledged the importance of analyzing previous year questions. Now, let's explore how to do it effectively:

Follow these straightforward steps for UPSC Previous Year Questions analysis:

Choose the topic for study from the relevant Prelims and Mains paper. (For instance: Parliament and Legislature)

Note the number of questions on the topic "Parliament " in UPSC Prelims and Mains from 2013 to 2023.

Scrutinize question patterns, paying attention to details.

Assess the annual weightage given to the topic.

Opt for study sources, focusing on NCERTs and reference books.

 Minimize sources for topics with lower marks and emphasize thorough coverage for high-weightage topics.

Evaluate the topic's importance in both Prelims and Mains, and compile notes accordingly.

Enhance your notes with valuable insights from reputable sources like The Hindu and Indian Express and institutes like Tathastu ICS current affairs.

Regularly revise and practice previous year questions, seeking feedback for improvement.

FREQUENTLY ASKED QUESTIONS:

From where can I download the previous year questions of UPSC CSE?

All the previous year questions can be downloaded from the official website of the UPSC, from the following link https://upsc.gov.in/examinations/previous-question-papers.

Do the questions get repeated for prelims and mains from the previous year questions?

While the exact questions are not repeated for prelims and mains, there might be similarities in the pattern, type of questions, or themes.

Do the questions get repeated for optional subject from the previous year questions?

Yes, some questions are repeated in optional subject papers.

Does practicing previous year questions alone suffice for UPSC CSE preparation?   

Practicing previous year exam papers can give you insights into crucial aspects of the exam. However, UPSC CSE is one of the toughest exams and requires a ton of practice and commitment. One can elevate their UPSC preparation by enrolling in the Tathastu ICS test series – a reputable institute offering rigorous practice tailored to the exam's demands.

In a nutshell, looking at past year questions (PYQs) is like finding a map to succeed in UPSC CSE. By understanding what worked before, PYQs become super important, giving us a peek into what the examiner thinks. It's like having a special key to unlock the UPSC exam secrets. By integrating insights from these questions, we not only build knowledge but also bolster our confidence, making us exam-ready.

[bdb-india]

One year to the Russia-Ukraine War: Effects on the Indian Economy | BDBIPL

As 2023 begins, the world is still dealing with the 3 Cs (covid, conflict and climate) a set of risks that feel both wholly new and eerily familiar. These concerns feel both entirely new and uncannily familiar. With the threat of these “older” risks—inflation, cost-of-living crises, trade wars, capital outflows from emerging markets, widespread social unrest, geopolitical conflict, and the spectre of nuclear war and constant climate changes.

The war between Russia and Ukraine has already lasted a full year. Since then, both sides have been actively waging a full-fledged war against one another a number of infrastructures have been destroyed, the war is still raging. But the ongoing Russia-Ukraine conflict has sent numerous shocks to the global economy, including that of India.

A year ago, following Russia’s invasion of Ukraine, there were concerns that the Indian economy would face increased uncertainty in at least three particular areas.

Increased inflation risks would provide additional difficulties for those in charge of overseeing India’s monetary policy.

The government’s fiscal consolidation plan would be in jeopardy if commodity prices increased, especially those of crude oil and fertilizers.

 The external sector of the Indian economy would be under pressure due to an increase in import costs, while exports may suffer as a result of a potential slowdown in the world economy.

The war’s severe trade interruptions, spikes in food and fuel prices, and overall weakening of the world economy are all factors in the rising inflation and accompanying tightening of financial conditions worldwide. Conflict and a shift in geopolitics have created a new global alignment that is upending the global economy, including India’s.

How did India handle the conflict between Russia and Ukraine?

The conflict in Ukraine will likely be the least anticipated of the economic surprises India is going to encounter in 2023. There are no signs of a resolution, and it has been difficult to foresee how it would affect the different sections of the Economy.

India is in the incredibly fortunate position of almost surpassing China as the most populous nation on earth. Although far more drastic reforms would be necessary, its demographics indicate that it has the ability to grow at a rate closer to 8% annually over the next ten years.

There have been two direct effects for India and another, equally significant indirect effect that is it pushed up our import bill for both energy and fertilizers. Both these (and the rising price of wheat globally) have also contributed to rising inflation globally, promoting Indian policymakers to raise interest rates in tandem with the rise in global rates resulting in Higher inflation and lower growth for India in the initial phases of the conflict. The situation now has however come to a changing point for India with the changed policy and economic condition.

Domestic Equity Markets – The benchmark Sensex on the BSE lost 2,700 points and the Nifty50 on the NSE fell 815 points after Russia announced its military activities in Ukraine. The Sensex saw its steepest fall on February 24, 2022, since the Covid pandemic began in March 2020. That was also the fourth-worst fall in the index’s history. Sensex and Nifty fell to their 52-week low last year in June, due to rising concerns over the conflict and its impact on inflation, and the economy. Sensex touched a low of 51,360.42 on June 16 last year, while Nifty tumbled to 15,293.50. However, markets have also scaled new peaks over the past year. On November 30, Sensex crossed the 63,000 mark, and the Nifty breached 18,758 points, for the first time ever. The Index is not significantly impacted because of government policies and international support for the Indian market, even though recent stock market changes have caused instability.

India’s inflation and RBI’s rate hike – India’s GDP numbers have also been affected due to the ongoing conflict. According to experts, inflation will be a persistent issue for a while and the economy has been tackling a surge in prices for a while now. The conflict in Ukraine had a number of significant effects, one of which was the effort to keep domestic prices of important commodities in check, which widened demand-supply imbalances. The Russia-Ukraine conflict has crippled the global supply chain, triggering a global food shortage, and subsequently resulting in high inflation rates in countries. Retail inflation in India reached an 8-year high of 7.79% in April 2022, two months after Russia invaded Ukraine, and remained above the Reserve Bank of India’s (RBI) tolerance level of 2-6%. This was mostly fueled by the enormous rise in crude oil prices around the world, which exceeded $139 per barrel as a result of supply chain difficulties and numerous sanctions on Russia. Financial institutions have forecast that this year will see a slowdown in global economic development as inflation rates continue to rise in many countries. Yet analysts predict that India will continue to be a “bright spot.” India is anticipated to grow 6.8% in FY23 as a result of digitalization, cautious fiscal policies, and large finance for capital investments announced in the Budget this year. Russian oil imports into India have significantly increased during the past few months. It has insisted that it has a fundamental responsibility to ensure that Indian consumers have the best possible access to international markets under the most favorable conditions.

India’s crude imports – India’s decision to increase crude oil trade and economic engagements with Russia would have huge diplomatic and economic repercussions. It is significant to remember that India mainly relies on imports to meet its needs for oil. Over 5 million barrels of the nation’s daily average need for crude oil—or about 85%—are imported. In February 2023, India’s imports of crude oil from Russia reached a record high of 1.6 million barrels per day, surpassing the sum of imports from its two main suppliers, Iraq and Saudi Arabia. For a sixth consecutive month, Russia maintained its position as the sole major supplier of crude oil, which is refined into gasoline and diesel. Russia provided more than one-third of all the oil that India bought. Prior to the start of the Russia-Ukraine conflict in February 2022, Russia had a market share of less than 1% of India’s imports; when the conflict began, that percentage increased to 1.62 million barrels per day.

Impact on exports – In its monthly economic report, the ministry of finance highlighted that the country’s major export markets are anticipated to experience steep declines in 2023, which could result in lack lustre growth for India’s exports this year. The volume and value of trade are likely to continue to drop in 2023 as a result of slowing global output, which caused a decline in global trade growth in 2022. The slowdown in international trade, particularly from the US and two of India’s top export destinations, may have a big effect on the country’s exports as well. Lower demand for Indian goods would result from a slowdown in their economy. India’s exports have grown significantly in the last few years due to robust manufacturing across a number of industries and supportive policy conditions. India’s merchandise exports soared to a new high of US$417.81 billion in the fiscal year (FY) 2022, above the government’s target of US $400 billion. According to government projections, India will reach its US$450 billion export goal in FY 2023.

India’s currency devalued – The rupee has declined against the US dollar by over 800 paise (9.8%) in the year since Russia invaded Ukraine. The depreciation has been almost 11% lower overall in 2022 than it was in all of 2013. The external industry has demonstrated resilience on numerous fronts despite the downturn being the most severe since the taper tantrums of 2013. The Reserve Bank had to repeatedly draw from its reserves as a result of the currency market’s volatility, which was brought on by a rise in world oil prices after Russia’s invasion of Ukraine, making it difficult for policymakers to address imported inflation.

Russia became India’s 5th largest trade partner – During the period of April through December 2022, according to data from the ministry of commerce, Russia became India’s fifth-largest trading partner. Russia moved up the list of India’s top commercial partners this was because of an increase in oil imports, from position 25. China and Russia are the only two of India’s top five trading partners whose shipments declined in the first half of the year, despite a 17% increase in overall exports. Despite pressure from the US and other nations to limit imports after the start of the conflict in Ukraine, the government has allowed oil corporations to acquire additional petroleum from Russia, which in October became the largest supply of crude for India.

BDBIPL, a prominent engineering products company, recognizes the significance of partnering with a strategy consulting company in India to fuel its growth and expansion plans. By engaging a reputable consulting firm with a deep understanding of the Indian market landscape, BDBIPL can tap into expert guidance and strategic insights. This collaboration enables BDBIPL to refine its business strategies, explore new market opportunities, optimize its operations, and effectively navigate the complexities of the Indian business environment. Leveraging the consulting company's expertise, BDBIPL can make data-driven decisions, strengthen its competitive position, and achieve sustainable growth in the ever-evolving Indian market.

[udyamonlineregistration]

An overview of the RBI's MSMEs-friendly loan restructuring policy 

The RBI has given one more window to the MSMEs dated 06-August 2020, in which the RBI allowed credit rebuilding strategy for the ideal development of the MSMEs who all have been appropriately guaranteed after the MSME/udyam Registration. RBI's advanced rebuilding strategy will give help to explicitly those influenced by the Covid 19 pandemic. 

The RBI advance confining arrangement will be viewed as the new system that was non-settlement yet "acknowledged" as dated January 1, 2020. RBI's credit rebuilding strategy will support the heft of MSMEs affected by the pandemic circumstance because of Covid 19. The Government of India has forced the National Lockdown. Unconstrained working and financial exercises have halted. It brings about pressure in the MSME area, which has underlined and needs further vital help. In this manner, it has been concluded that shaping the focus on MSME borrowers to be qualified and prepared for the rebuilding of their obligation under the current system and giving their records to the concerned moneylender, named the norm on the first of March, 2020. The said rebuilding strategy should be carried out by the 31st of March 2021. 

Who will be benefited from the RBI Loan Restructuring Policy? 

The Micro Small and Medium Enterprises, which don't fall under non-performing resource (NPA) until the date March 1, 2020, and were recently treated as "acknowledged" accounts, will profit from the RBI advance rebuilding strategy upheld on dated 01, March 2021. It tends to be viewed as a proceeding with plot expansion until the date 31st December 2020, an "acknowledged" account until January 1, 2020. 

The MSMEs which have enlisted under the Goods and Service Tax with approx borrowings up to the measure of INR 25 crore as of first March 2020 will be covered under the RBI advance rebuilding strategy. 

Why Is RBI Loan Restructuring Policy Required? 

The activity is convincing as the chance for Msme's advance record falling under NPA is higher than that of others. At the point when the RBI delivered its last monetary soundness report, in which RBI had expressed that the MSMEs area had been influenced especially because of the absence of incomes during the Covid-19 pandemic. 

The RBI advance rebuilding strategy will contribute the fundamental help for the MSMEs in the two areas which have been influenced more because of the National lockdown forced by the Indian Government coming about conditions, regulation, switch movement, production network, and exchange gagging, and so forth 

How might the RBI Loan Restructuring Policy Be Enforced? 

To execute the RBI credit rebuilding strategy, the RBI has set up a five-part master council coordinated by VK Kamath, the previous administrator of ICICI Bank. He will set up the recommendations dependent on the prerequisite of monetary boundaries. At the point when the RBI has given expansive forms, 

While the RBI is favored with the expansive bend and the board of trustees will propose the MSMEs area explicit standard that contacts for such boundaries to be discrete into every settlement plan for borrowers with total openness of INR 1,500 crore time charm. 

The board will likewise begin a course of substantiation of settlement plans for subtleties over the expressed limit. The RBI will declare this alongside changes in 30 days. According to the RBI's fundamental danger survey, the three areas most incredulously influenced by the pandemic are the travel industry, land, and aircraft. 

Were Earlier Such Policy Not Exploited by Banks and Corporates? 

Prior, there were numerous financial plans to advance the upgrade of the MSMEs area, however, due to their not being as expected carried out, the Banks and Corporate were taking advantage of them. Following are the classification of such strategies. 

Corporate Debt Restructuring (CDR) 

The RBI has ended the corporate obligation rebuilding (CDR) strategy from April 1, 2015. For a long time, enterprises were taking advantage of the obligation to recast thoughts, with the lead representative choosing to disregard organizations by the obscure promoter in schemes for certain banks. Banks has additionally pre-arranged a secluded corporate obligation rebuilding unit with past IDBI supervising the interaction. 

The publicists of a few huge partnerships removed a few bank reserves while their cells were gone through. They are related with the corporate obligation rebuilding unit, and to get their advances reevaluated, some of them get more than once. These publicists took care of getting new credits and utilized liberal advance reevaluations to evergreen their records and keep them out of the NPA books. Presently some of them have proclaimed themselves bankrupt. 

Vital Debt Restructuring (SDR) Scheme 

In the Strategic Debt Restructuring (SDR) conspiracy, banks gave an opportunity to educate the advance expense into 51% of value, which was to be given to the most elevated competitor once the firm became possible. Yet, lamentably, this thought couldn't assist save money with figuring out their most exceedingly awful credit issue as just deals have partaken through this action due to development issues. 

Reasonable Structuring Of Stressed Assets (S4A) Scheme 

Inside the Sustainable Structuring of Stressed Assets (S4A) plot, the banks were reluctant to be permitted to compose downs as there were no motivating forces to do as such, and compose downs of the enormous account holders that could debilitate banks' capital pads. 

Resource Reconstruction Scheme 

There were significant issues looked at by the ARCs to decide the resources they had from the monetary organizations, and they simply needed to take the credit at a modest pace of interest. Thus, monetary establishments were careful with regard to authorizing advances for a huge scope. 

Suggested Read- Udyam Registration Benefits

Conclusion

Inside the particular and earnest time circle, in the field of alleviation for the MSME area in the period of stress during the unsure COVID-19 and unexpectable pandemic, RBI as regular in its good and money related plan which declared today has expanded the rebuilding of obligation for MSME borrowers. The RBI additionally stretched out help to enormous corporate, and SME sections with the vital shield and ways to deal with helping them. 

In a real sense, such an advanced rebuilding strategy allows a borrower with some adaptability as far as elegance and expansion residency for credit EMI, and interest installments to shield and support the borrower to purchase. It permits a fun opportunity to take care of his credit add up to the particular banks. The Loan rebuilding strategy helps the bank save money on higher provisioning. In any case, the banks need to make higher arrangements on default or a non-performing resource (NPA), directly affecting their productivity.

[insperonjournal]

India Business News.

India is one of the fastest growing economies in the world. The country's business sector plays a vital role in its overall economic growth. Economic news in India is always full of new developments, policy changes and economic indicators. In this article, we will take a closer look at today business news in english.

India's GDP growth

India's economy is on the road to recovery from the COVID-19 pandemic. According to the latest estimates from the Reserve Bank of India (RBI), the country's gross domestic product (GDP) growth rate for the financial year 2021-2022 is expected to be around 9.5%. The growth was attributed to the government stimulus plan, structural reforms and vaccination campaigns. The RBI also said inflationary pressures are easing, which is a positive sign for the economy.

 Stock Market Update

Indian stocks got off to a strong start on Monday, March 20, with benchmarks opening higher. The BSE Sensex opened at 50,168.11, up 354.69 points, while the NSE Nifty opened at 14,916.35, up 106 points. Markets are expected to remain volatile due to the ongoing pandemic and global uncertainties.

 Tata Motors plans electric vehicles

Tata Motors, one of India's leading automakers, has announced plans to launch 10 new models of electric vehicles (EVs) by 2025. The company also plans to set up a factory dedicated electric vehicle manufacturing facility in the state of Gujarat. Tata Motors aims to become a carbon-neutral company by 2050, and the switch to electric vehicles is a step in that direction.

 Indian economy rebounds in 2021-22

Today business news suggests that the Indian economy is expected to rebound strongly in the current fiscal year. According to a report by the International Monetary Fund (IMF), the Indian economy is expected to grow by 11.5% in 2021-22, making it the fastest growing major economy in the world. The report cites strong political support in India, a recovery in manufacturing and services and a recovery in vaccine-led consumer confidence as key drivers of expected growth.

 Cairn Energy Dispute with Indian government

Cairn Energy, a UK-based oil and gas company, has had a long-standing tax dispute with the Indian government.

The company won a $1.2 billion arbitration award against India in 2020, but the Indian government refused to pay. Cairn Energy has now engaged a number of countries, including the US and UK, to enforce the ruling. The dispute has drawn widespread attention and criticism from investors and business groups, who view the Indian government's actions as treacherous and a threat to foreign investment in India.

 Indian startups attract record funding

Despite the challenges posed by the COVID-19 pandemic, Indian startups attracted record levels of funding in 2021.

Indian startups raised $10.1 billion in funding in the first quarter of 2021, up from $2.5 billion in the same period last year, according to a report by Venture Intelligence. The increase in funding is a testament to the resilience and innovative capacity of India's startup ecosystem, which has adapted to the changing landscape brought on by the pandemic.

You can follow the Insperon Journal website for useful business information and latest news. You can also subscribe to Insperon Journal's newsletter for the latest business in India news.

[anewswire]

India better placed than most to face turmoil, says RBI report

The Reserve Bank of India (RBI) stated in its State of the Economy report on Tuesday that the Indian economy has remained resilient despite high levels of uncertainty and is better prepared than many other regions of the world to face the coming hard year. Even though 2023 is predicted to see a slowdown in global growth or perhaps a recession, More resilient than originally believed, India has recovered from the epidemic years, it claimed. According to the paper, the American banking crisis may not have a significant direct impact on India's economic activity, but markets were preparing for tighter financial conditions. Concerns about financial stability may have to be traded off with the implementation of a deflationary monetary policy as a result. Yet, the research brought up concerns about inflation. According to the research, core inflation "continues to defy the marked lowering of input prices" despite the consumer price index (CPI)-based inflation's slight easing in February. The data also signaled a decline in personal consumption. According to high-frequency indicators, including and possibly mostly as a result of increased inflation, private consumption "may edge down further." From 6.52 percent in January to 6.44 percent in February, retail inflation slowed. A favorable base effect caused the headline inflation to moderate by 8 basis points (bps) between January and February. Core inflation decreased from 6.2 percent in January to 6.1 percent in February. Notwithstanding a 250-bp increase in the repo rate since May 2022, CPI inflation has remained above the RBI's upper tolerance range of 6% for nine out of the year's 11 months. On April 6, the Monetary Policy Committee of the RBI will examine and release its position. "With global uncertainty, inflation is likely to range tightly between 5.0 and 5.6 per cent throughout the next financial year (2023–24), if India survives an El Nino event severely influencing the south west monsoon," the paper stated. Even if GDP growth slowed to 4.4% from October to December, the central bank has sounded more upbeat on the economic front. According to the report, "unfavorable" base effects were to blame for the Q3 decline. The Q3 statistics provided "important information content" for the remainder of the year, according to the report. It specifically highlighted the continued decrease in private consumption. Real GDP growth of 5.3% is predicted for the fourth quarter of FY23 by the RBI's nowcast model. The research stated that easing supply chain pressures and a pickup in services activity were further strengthening the economic impulses. "The positive effects of the decrease in imports were offset by the decline in government final consumption expenditures. Private consumption and fixed investment both decreased in speed, although governmental spending in infrastructure offered some protection. In contrast to the deceleration in industry, agriculture and services provided a bright spot on the supply side, according to the report. The report's restoration of the investment-savings imbalance to pre-pandemic levels was another significant high point. The difference between investment and savings during the epidemic changed from a deficit of 0.8% of GDP in 2019–20 to a surplus of 1% in 2020–21. In 2021–2022, the difference has changed once more to 1.2%. India's development prospects are expected to increase "if this is signalling the beginning of a new trend as indicators for 2022–23 also point," the report stated. During 2023–2024, the monetary policy review from February predicted real GDP growth of 6.4%.   Read the full article

[newsbunddle]

Citing inflation concern, RBI holds key rate; says recovery needs support

Citing inflation concern, RBI holds key rate; says recovery needs support

The Reserve Bank of India (RBI) on Friday left key policy rates unchanged for the third time in a row in the wake of persistently high retail inflation, even as it pointed to the economy, which contracted in the last two quarters, showing signs of an early recovery. The six-member Monetary Policy Committee (MPC) decided to maintain status quo on the policy rate and to continue with the…

[ndtvindia24hrs]

RBI monetary policy: increase in contactless card limit; What does this mean for you here

RBI monetary policy: increase in contactless card limit; What does this mean for you here

RBI Governor Shaktikanta Das said that the limit of contactless card has been increased from Rs 2,000 to Rs 5,000. Reserve Bank of India (RBI) Governor Shaktikanta Das announced today that the central bank has increased the limit of contactless card payments from Rs 2,000 to Rs 5,000 per transaction. The revised limit will come into effect from January 1, 2021 and will be at the discretion of…

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Contactless Card Transaction Limit Increased, What Does It Mean?

Contactless Card Transaction Limit Increased, What Does It Mean?

RBI Governor Shaktikanta Das said contactless card limit is increased from Rs 2,000 to Rs 5,000 The Reserve Bank of India (RBI) Governor Shaktikanta Das announced today that the central bank has increased the limit for contactless card payments from Rs 2,000 to Rs 5,000 per transaction. The revised limit will come into effect from January 1, 2021 and it will be at the discretion of the user. The…

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Monetary Policy Review Largely A Non-Event: Economists On RBI's Announcements

Monetary Policy Review Largely A Non-Event: Economists On RBI’s Announcements

RBI Governor Shaktikanta Das said that second half of 2020-21 is expected to show some positive growth Reserve Bank of India (RBI) Governor Shaktikanta Das-led Monetary Policy Committee on Friday, December 4, kept the key interest rates untouched amid inflation concerns. However, the central bank will ensure liquidity for the stressed sectors for keeping the nascent economy on track, said the…

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RBI Monetary Policy: Repo rate unchanged, GDP to fall by 9.5 per cent Image Source : FILE PHOTO RBI Monetary Policy: Repo rate unchanged, GDP to fall by 9.5 per cent…

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RBI policy brings back forbearance but it ain’t easy this time for banks

RBI policy brings back forbearance but it ain’t easy this time for banks

When you are stressed, you go for a holiday. But when you realise it is not enough, you want the holiday to be extended and considered as work too. Enter one-time restructuring and forbearance for banks.

The Reserve Bank of India(RBI) has now allowed banks to restructure loans up to December without naming them as bad. But unlike the previous episode of corporate debt restructuring, the…

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Reserve Bank of India finally introduced its third bi-monthly monetary policy on 6th August for the financial year of 2020-2021. The meeting continued for three days between August 2020.

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This is the sixth time in a row that the Monetary Policy Committee (MPC) headed by RBI Governor Shaktikanta Das has maintained status quo. RBI had last revised its policy rate on May 22, 2020, in an off-policy cycle...