Topic: Indian Economy/Financial Market
1. Industrial Production rises 19.6% in May against 7.1% in April.
- The National Statistical Office (NSO) has released the Quick Estimates of Index of Industrial Production (IIP).
- India’s Industrial Production jumped to 19.6% in May due to the strong performance of the manufacturing, power, and mining sectors.
- In May, the manufacturing sector has grown by 20.6% while power generation soared by 23.5%.
- The mining sector witnessed an expansion of 10.9% in May 2022.
- Consumer non-durables grew by 0.9% while Capital goods grew by 54%.
- The Quick Estimates of IIP with base 2011-12 stand at 137.7 for May 2022.
- Last year in May, the IIP had grown by 27.6% mainly due to the low-base effect.
- The IIP index provides the details of the growth of various sectors in the economy.
Topic: Reports and Indices
2. United Nations' World Population Prospects 2022 projected that India will overtake China as the world's most populous country in 2023.
- With 1,426 million, China is the most populous country in the world in 2022, and India has a population of 1,412 million.
- On November 15, 2022, the global population will reach 8 billion which is more than three times the population of 2.5 billion in 1950.
- According to UN forecasts, India's population will reach 1,668 million by 2050, greatly above China's falling population of 1,317 million.
- By 2037, Central and Southern Asia is likely to become the world's most populous region.
- According to the most recent UN projections, the world's population may reach 8.5 billion people in 2030, 9.7 billion in 2050, and 10.4 billion in 2100.
- According to the report, the global life expectancy at birth decreased to 71 years in 2021, from 72.8 years in 2019.
- The global population is growing at its slowest rate since 1950, having fallen under one percent in 2020.
- World Population Prospects 2022:
- It is the 27th edition of official United Nations population estimates and projections.
- It provides population estimates from 1950 to the present for 237 countries or areas.
Topic: Reports and Indices
3. India can increase its manufacturing exports to $1 trillion by FY28 as per Bain & Company.
- A report prepared by Bain & Company said that India’s export contribution to global trade could change.
- India is the world’s 6th largest manufacturing economy. Its export contribution to global trade is only 1.6%.
- India’s manufacturing exports for FY22 recorded a growth of over 40% over the previous year.
- They reached $418 billion for FY22. They stood at $290 billion in FY21.
- India’s manufacturing exports for FY22 were higher than the pre-pandemic peak of $328 billion in FY19, stated the report.
- The report is titled The Trillion-Dollar Manufacturing Exports Opportunity for India.
- Bain & Company is an American management consulting company.
4. Directorate of Revenue Intelligence (DRI) has found Customs duty evasion of around ₹4,389 crore by Oppo Mobiles India.
- Finance Ministry said revenue intelligence officers found duty evasion by Chinese smartphone maker Oppo by misdeclaration of imports.
- A show-cause notice has been issued to Oppo India demanding Customs duty amounting to ₹4,389 crores.
- Oppo Mobiles India Private Limited is a subsidiary of Oppo China. It deals in brands of mobile phones, including Oppo, OnePlus and Realme.
- Directorate of Revenue Intelligence works under the Central Board of Indirect Taxes & Customs, Ministry of Finance, Government of India.
Topic: Indian Economy/Financial Market
5. Consumer Price Index based retail inflation eased to 7.01% in June 2022 compared to 7.04% in May 2022.
- CPI-based retail inflation has remained over 7% for the third consecutive month.
- It has for the sixth successive month remained above the upper limit (6%) of targeted range of 2-6%.
- Inflation eased marginally mainly due to the easing of prices in the "Food & Beverages" section.
- Inflation in the food basket came down from 7.84% in May 2022 to 7.56% in June 2022.
- The inflation in vegetables eased from 18.26% in May 2022 to 17.37% in June 2022.
- Inflation has remained above RBI’s six percent upper range because of increasing global commodity prices due to the Russia-Ukraine war and high crude oil prices.
6. FSIB has recommended G Rajkiran Rai for the position of Managing Director at NaBFID.
Topic: Reports and Indices
7. According to a report by UNDP, impact of inflation on India’s poor would be negligible.
- The report is titled, ’Addressing the Cost-of-Living Crisis in Developing Countries’.
- In the report, UNDP assessed the impact of inflation, disruptions in the supply chain due to Ukraine crisis and Covid on cost of living.
- UNDP took three poverty lines at $1.90 per day, $3.30 per day and $5.50 per day.
- In India, inflation will push 0% of the population below the poverty line of $1.90 per day.
- It will push just 0.02% of the population below the poverty line of $3.30 per day.
- Inflation will push just 0.04% of the population below the upper poverty line of $5.50 per day.
- As per the report, rising food prices and energy prices can overall push up to 71 million people into poverty globally.
- United Nation Development Program (UNDP) is the UN’s global development network that was founded in 1965. It is headquartered in New York.
8. SBICAP Ventures Ltd (SVL) has signed an MoU with Ministry of External Affairs.
- The MoU has been signed for the setting up of Trilateral Development Cooperation Fund (TDC Fund).
- SVL will act as the administrator-cum-advisor (Investment Manager) of the TDC Fund. It is a subsidiary of the State Bank of India (SBI).
- The TDC Fund will route India’s commitment of about Rs 175 crore to the Global Innovation Development Fund (GIP Fund).
- It will operate as a ‘Fund of Funds’ under the SEBI Alternative Investment Fund (AIF) Regulations.
- GIP Fund will be set up as AIF in partnership with Foreign, Commonwealth and Development Office (FCDO) under the India-UK Global Innovation Partnership (GIP).
- It will invest chiefly in Indian small and medium enterprises that tackle development challenges as per the objectives of GIP.
Topic: Banking System
9. RBL Bank has partnered with India Mortgage Guarantee Corporation (IMGC).
- The partnership is to offer mortgage guarantee backed home loan products for salaried and non-salaried people.
- The partnership will also allow the bank to mitigate credit risks with IMGC’s expertise.
- RBL Bank is a Mumbai based Indian private sector bank. It was earlier known as Ratnakar Bank. R Subramaniakumar is its MD & CEO.
- India Mortgage Guarantee Corporation (IMGC):
- It is the first Mortgage Guarantee Company of India. It started operation in 2014.
- It is regulated by the RBI under the Mortgage Guarantee guidelines.
10. RBI has imposed ₹1.678 crore monetary penalty on Ola Financial Services Private Ltd.
- RBI has imposed the penalty for non-compliance with certain provisions of the Master Directions on Prepaid Payment Instruments (PPIs) and Know Your Customer (KYC).
- RBI has imposed the penalty in the exercise of powers vested in it under Section 30 of the Payment and Settlement Systems Act, 2007.
- Section 30 of the Payment and Settlement Systems Act, 2007 deals with RBI’s power to impose fines.
11. Central government has nominated 29 non-official members to Board of Trade.
- These members come from large and small enterprises and different sectors in the Board of Trade.
- The new non-official members include Rajesh Gopinathan (CEO of Tata Consultancy Services), Sanjay Nayyar, Om Prakash Mittal, Pankaj Mahindroo, RS Sodhi and others.
- The tasks for the non-official members of the Board of Trade are given next.
- Providing a platform to state governments and UTs for articulating state-oriented perspectives on trade policy
- To act as a facilitator in implementation of District Export Hub events
- Help states develop and pursue export strategies in line with national Foreign Trade Policy
- Facilitate a mechanism for discussion on operationalisation of the trade infrastructure
- Review policy instruments and procedure for imports and exports and suggest steps to rationalize use
- Secretaries of different departments, NITI Aayog CEO, Deputy Governor of RBI, and CBIC (Central Board of Indirect Taxes and Customs) chairman are official members of Board of Trade.
- Representatives of industry chambers are ex-officio members of Board of Trade.
- Board of Trade:
- It is chaired by the Commerce and Industry Minister. It advises the government on policy measures to improve the country's foreign trade.
- In 2019, Council of Trade Development and Promotion was merged with the Board of Trade.
12. Oilseeds production in India has remained stagnant at CAGR of 1.94% between 2011-12 and 2020-21.
- Global oilseeds production has seen compounded annual growth rate (CAGR) of 2.9% in the same period.
- There has been no growth in domestic production because of stagnant cultivation area, marginal improvement in crop yield and low seed replacement rate (SRR).
- As per a report, only about 15% of India’s total cropped area is sown with freshly obtained quality seeds every year. Rest is sown with farm-saved seeds.
- SRR is the percentage of area sown out of total cropped area in the season by using certified seeds other than farm-saved seeds. For oilseeds, SRR varies from 20% to 80%.