Business, Economy & Banking Current Affairs MCQs

Notes:
The Asian Development Bank’s (ADB) April 2024 outlook revised India’s GDP growth forecast for FY25 to 7%, up from 6.7%. ADB reported India’s 7.6% GDP growth in 2023-24, projecting 7.2% growth in 2025-26. Reserve Bank of India also forecasts 7% growth for FY25. Despite global economic challenges, India is anticipated to lead major economies in FY 2025, fueled by domestic demand, government policies, investments, and export gains in electronics and services.

Notes:
Adani Green Energy Limited, a part of the Adani Group, is constructing the world’s largest renewable energy park in Khavda, Gujarat’s Kutch district. Spanning 538 square kilometers, it dwarfs Paris in size by fivefold. With a planned capacity of 30 GW and an investment of Rs 1.5 lakh crore, it currently produces 2 GW, set to expand to 6 GW by March 2025. Located just 1 km from Pakistan’s border, it emphasizes solar energy, aiming to generate 81 billion units, fulfilling the electricity demands of nations like Belgium, Chile, and Switzerland.

Notes:
India and Mauritius recently amended their Double Taxation Avoidance Agreement (DTAA) to combat tax evasion and avoidance. The revision covers all incomes including capital gains and dividends. It introduces the Principal Purpose Test (PPT) to prevent misuse of treaty benefits like reduced withholding taxes. The preamble now emphasizes eliminating double taxation without enabling tax evasion. The amendment impacts cross-border investments via Mauritius, requiring consideration of BEPS MLI implications. However, it doesn’t address the status of past investments.

Notes:
The Reserve Bank of India permits Foreign Institutional Investors to invest in Sovereign Green Bonds (SGrBs), aiming to fund environmental projects. SGrBs are debt securities issued by governments to support climate initiatives. The Union Budget 2022-23 introduced SGrBs, with the government outlining a framework based on ICMA principles: use of proceeds, project selection, fund management, and reporting. This move aligns with global efforts to finance sustainable development.

Notes:
Tamil Nadu is the top state for electronic exports in India for the financial year 2023-24, with a record-breaking $9.56 billion in exports. This accounts for 30% of all electronic goods exports from India in the year 2024. Tamil Nadu exports a variety of electronic goods, including hardware, leather goods, textiles, and automobiles.

Notes:
Recently, the Insurance Regulatory and Development Authority of India (IRDAI) launched Bima Vistaar at a CEO summit, priced at Rs 1,500 per policy. This comprehensive product combines life, health, personal accident, and property insurances, targeting rural areas. Sum assured for life, accident, and property is Rs 2 lakh each, with health cover offering Rs 500 for 10 days, max Rs 5,000 without documents. Agents earn 10% commission, facilitating wider distribution via Bima Vahak, aiming to increase insurance penetration.

Notes:
The Ministry of Finance has granted Authorised Economic Operator (AEO) status to the gem and jewellery sector to enhance ease of doing business. Asian Star, a leading diamond manufacturer, is the first recipient in the industry. The AEO program, under the World Customs Organization (WCO) SAFE Framework, aims to secure international supply chains. AEO status offers benefits like quicker clearance and enhanced security, aligning with World Trade Organization trade facilitation agreements. Introduced in India in 2011, the voluntary AEO Programme by CBIC simplifies customs procedures.

Notes:
The Department of Public Enterprises has bestowed Navratna status upon the Indian Renewable Energy Development Agency Limited (IREDA). Established in 1987 under the Ministry of New and Renewable Energy, IREDA functions as a Non-Banking Financial Institution. The Navratna status is awarded based on specific criteria including consistent high performance, such as achieving ‘excellent’ or ‘very good’ ratings in MoUs for three out of the last five years and a composite score of 60 or above in selected performance indicators.

Notes:
The National Council of Applied Economic Research predicts India’s economy to surpass 7% growth this fiscal year, citing global growth, trade acceleration, and a promising monsoon. The IMF has raised India’s growth forecast for 2024-25 to 6.8%, up from 6.5%. Government data reveals a 7.6% growth in FY24.

Notes:
NHPC Limited, India’s premier hydropower developer, has inked a Memorandum of Understanding with Ocean Sun, a Norwegian tech firm specializing in floating solar solutions. The agreement aims to explore joint ventures in deploying Ocean Sun’s innovative floating solar technology, utilizing hydro-elastic membranes. NHPC’s commitment to sustainable development and renewable energy expansion is reinforced through this partnership, aligning with its portfolio diversification into solar, wind, and green hydrogen projects.