Topic: Indian Economy/Financial Market
1. In FY24, India exported 47.8 million metric tonnes (MT) of iron ore.
- This is the second-highest level in the last six years and the highest in the last three years.
- Strong demand from China is the main factor driving the increase in exports.
- More than 90% of the iron ore purchased came from China. 43.20 MT of cargo were sent out from India.
- Less than 1 MT of exports were made to other nations. With 0.91 MT exported, Indonesia recorded the second-highest amount after China.
- India exports mostly low-quality fines. About 24% (or 11.32 MT) of all exports are made up of pellets.
- The demand for iron ore in FY23 was 21.28 MT. It was 26.40 MT in FY22.
- Data compiled by consulting firm BigMint (previously SteelMint) shows this.
- The largest iron ore exports during the previous six years, 60.15 MT, were recorded in FY21.
- Additionally, there is a low base impact, mostly as a result of a six-month export duty that hurt foreign sales in the previous fiscal year.
- From 3.41 MT in September to 6.29 MT in December, India's iron ore exports surged. It peaked in January.
Topic: Infrastructure and Energy
2. For FY25, the government fixed the target to produce 170 million tonnes of coal.
- The goal set by the government is to produce said amount of coal from both captive and commercial coal blocks.
- A total of 147.12 million tonnes (MT) of coal were produced in FY24 by commercial and captive coal blocks.
- Compared to the 116 million tonnes (MT) produced in FY23, this represented a 26% increase.
- In FY24, captive mines serving the electricity sector produced about 121.3 MT of the overall output of 147.2 MT.
- 8.4 MT were produced by non-power sector captive mines. 17.5 MT of fuel were produced by commercial mines.
- Data provided by mjunction shows that India's imports of coal increased to 244.27 MT in the April-February quarter of FY24 from 227.93 MT in the corresponding period of last year.
Topic: RBI
3. RBI has granted in-principle approval to Revolut for Prepaid Payment Instruments licence.
- RBI has given in-principle authorization to Revolut India to issue Prepaid Payment Instruments (PPI).
- Revolut India has received in-principle authorization to issue PPI including prepaid cards and prepaid wallets in the country.
- Revolut India has earlier got licences from RBI to operate as a Category-II Authorised Money Exchange Dealer (AD II).
- Revolut will be able to offer both international and domestic payment solutions on a single platform.
- Revolut is a London-based neobank and financial technology company.
Topic: Banking System
4. Two applications to set up small finance banks have been rejected by RBI.
- The applications were made by Dvara Kshetriya Gramin Financial Services and Tally Solutions Private.
- The applications for small bank licence was made by Dvara Kshetriya Gramin Financial Services in April 2021.
- Tally Solutions Private made application in August 2021.
- RBI found that they are not suitable for granting of in-principle approval to set up a small finance bank.
- RBI has received 13 applications to set up a universal or small finance bank under the ‘on tap’ licensing guidelines for such banks.
- Out of the thirteen applications, RBI has rejected total 11 applications.
- RBI said the remaining two applications are under examinations.
- One of the remaining two applications was filed by Bhubaneswar-based Annapurna Finance Private for a universal bank licence.
- The other remaining application was filed by Navi Mumbai-based Fino Payments.
- In May 2022, RBI rejected all four universal bank applications as well as two small finance bank applications. In July 2023, RBI also cancelled 3 more applications.
- Few days ago, RBI rejected Annapurna Finance Limited’s application for a universal bank license made in January 2023.
- RBI gave Annapurna Finance the option to become a small finance bank.
Topic: Reports and Indices
5. India began operating 11.3 GW of coal-fired capacity in 2023.
- This was the highest since 2016. 11.3 GW of new coal-fired thermal power plants (TPPs) have been announced by India.
- During the previous seven years, this is the highest.
- The Global Energy Monitor (GEM) Boom and Bust Coal 2024 report states that India added 5 GW of coal-fired power units in 2023 as opposed to 2 GW in 2022.
- According to the report, private companies like Essar and Adani Power also proposed the 1.6 GW Raikheda extension and the 1.2 GW Kajurda power plant.
- It made the point that India's coal fleet might keep growing in the future.
- According to the report, 10 coal-fired units across six power stations received environmental clearances last year.
- 69.5 GW of coal power capacity was commissioned globally in 2023.
- The Power Ministry declared in December 2023 that by 2032, it would like to add approximately 88 GW of new thermal power plant capacity to the grid. This capacity would be primarily coal-fired.
- According to the national electricity plan, 25.58 GW will probably be commissioned between 2022 and 2027. The same amount is planned for commissioning from 2027–2032.
- In 2023, India put 5.5 GW of new coal capacity into service, of which 1.8 GW is privately owned. Government enterprises own the remaining 3.7 GW.
- India is the second-biggest consumer of coal worldwide. More than ten percent of the world's operational coal-based capacity is located in India.
- India possesses the second-largest operational coal-fired power capacity in the world.
Topic: Indian Economy/Financial Market
6. India's retail inflation fell to a 10-month low of 4.85% in March.
- On an annual basis, India's retail inflation declined to 4.85% in March from 5.09% in the previous month.
- A Reuters poll had projected that number would fall to 4.91%.
- The number remains within the Reserve Bank of India's (RBI) tolerance band of 2-6%.
- Citing the National Statistical Office (NSO), PTI reported that inflation in the food basket stood at 8.52% in March, down from 8.66% in February.
- Meanwhile, industrial output rose to a four-month high of 5.7% in February, up from 4.1% in the previous month.
Topic: Indian Economy/Financial Market
7. Moody’s revised Real GDP Growth Projection of India to 8%.
- Rating agency Moody’s predicted stable outlook for India. The long-term and short-term ratings of the government of India has been pegged at Baa3 and P-3, respectively.
- Moody’s has revised India’s real GDP growth projection to 8 per cent for the 2024-25. Moody’s projected that economic growth will remain above 6 per cent over the next two fiscal years.
- As per the Moody’s, in 2024-25, India’s economic growth will remain above G20 peers emerging countries.
- India’s GDP grew at a massive 8.4% during the October-December quarter of the current financial year 2023-24.
- India’s economy grew 7.2% in 2022-23 and 8.7% in 2021-22, respectively.
- In the April edition of the Asian Development Outlook, Asian Development Bank increased India’s GDP growth forecast to 7 per cent from 6.7 per cent for the current fiscal.
- As per the ADB, exports will remain muted because development in major advanced economies will decline but it will get better in FY2025.
Topic: Appointments
8. Sanjay Shukla will be the new Managing Director (MD) of the National Housing Bank (NHB).
- Centrum Housing Finance's Sanjay Shukla is appointed as the Managing Director (MD) of the National Housing Bank (NHB).
- Financial Services Institutions Bureau scrutinised 16 candidates for the post.
- This appointment assumes significance against the backdrop of NHB's plans to raise capital by issuing bonds.
- NHB is planning to raise ₹3,000 crore through bonds with a unique maturity period of three years.
- Financial Services Institutions Bureau (FSIB) has also recommended the name of IFCI Managing Director Manoj Mittal as SIDBI Chairman.
Topic: Reports and Indices
9. India ranked third with 67 unicorns worldwide, the US has 703, and China has 340 unicorns.
- As per the Hurun Global Unicorn Index 2024, India has recorded a decline in unicorn creation for the first time since 2017.
- According to the latest Hurun Global Unicorn Index, there were 67 unicorns in India in 2023, one less than 68 such startups last year.
- The US leads the list with 703 unicorns, which is 37 more than 2022, and China is second on the list with 340 unicorns.
- The UK and EU are ranked fourth and fifth respectively on the list.
- The total value of the world's unicorns has reached US$5 trillion, which is equivalent to Japan's GDP last year.
- The main reason for the slowdown is the lack of investment in start-ups despite the stock market's recent record highs.
- However, the report said India has produced more offshore unicorns than any other country, with 109 unicorns co-founded outside India compared to 67 in India.
Topic: Reports and Indices
10. India is now the fourth largest exporter of digitally delivered services.
- India has now emerged as the fourth largest exporter of digitally delivered services, with its share now accounting for more than a fifth of international trade in services.
- Data released by WTO in Global Trade Outlook and Statistics estimates India's exports of digitally delivered services were worth $257 billion in 2023, 17% higher than the previous year.
- India has overtaken Germany and is just behind America, Britain and Ireland.
- Digitally delivered services include using computer networks to provide professional services for education, gaming, and streaming music and video.
- It has seen rapid growth over the past two decades, now accounting for a fifth of global services trade, compared to 14% in 2005.
- Their exports are now 50% higher than pre-Covid levels, reflecting the declining trend seen in goods trade.
- On April 10, the WTO projected growth of 2.6% in 2024, after a 1.2% decline in goods trade volume.
- In value terms, world goods trade, measured by the average of exports and imports, is projected to fall 5% to $24 trillion in 2023, while commercial services will increase 9% to $7.5 trillion.
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