Banking Awareness of 15 and 16 December 2023

Topic: Indian Economy/Financial Market

1. After a seven-month gap, wholesale inflation returned to positive territory in November, at 0.26%.

• The wholesale price inflation was in negative zone for seven months. October saw a -0.52% wholesale price inflation rate.
• The increase in prices of food items, minerals, machinery and equipment, computers, electronics and optical products, automobiles, other transport equipment, and other manufactured goods was the main cause of the rise, according to the Ministry of Commerce and Industry.
• Food inflation increased from 2.53% in October to 8.18% in November.
• The price of primary items increased from 1.8% in October to 4.8% in November. 
• The prices of fuel and power was 4.6% less than November of last year.
• The prices of manufactured goods decreased by 0.64% from November 2022 levels, reflecting the lowest pace of deflation in at least three months. They were up by 0.07% from October.
• Within primary articles, the prices of food articles increased 8.2%. The prices of paddy and vegetables up 10.44%.
• The prices of pulses rose 21.64%. The prices of onions increased 101.24%.
• Cereals inflation stood at 7.12%. Wheat prices increased 2.55% from 18.1% last November.

Topic: Indian Economy/Financial Market

2. Trade deficit for the November 2023 declined to $20.58 billion from the all-time high level of $31.5 billion in October 2023.

• India’s goods exports declined by 2.83% in November to $33.9 billion. Imports declined by 4.33% to $54.48 billion.
• In November 2023, the fall in exports was driven by engineering goods, petroleum products, ready-made garments, chemicals, leather, and marine products.
• The fall in imports in November 2023 was mainly due to a fall in petroleum, coal, chemicals and chemical products, fertilisers, and vegetable oil.
• Exports stood at $278.80 billion for the period April-November 2023. They were 6.51% lower than exports of $298.21 billion during April–November 2022.
• During the same period, imports stood at $445.15 billion. They were 8.67% lower than $487.42 billion during April-November 2022.
• The trade deficit for the period April–November 2023 was $166.35 billion compared with $189.21 billion during April–November 2022.

Topic: Indian Economy/Financial Market

3. Tamil Nadu attracted cumulative FDI inflow of nearly $10 billion in the last four years between October 2019 and September 2023.

• It is ranked fourth in attracting FDI between October 2019 and September 2023, after Maharashtra, Karnataka and Gujarat.
• Up to September month of current fiscal, Tamil Nadu attracted FDI worth $1.3 billion.
• The total FDI inflow consists of equity inflow, equity capital of unincorporated bodies, re-invested earnings and other capital.
• The State-wise details are recorded for the equity component of total FDI inflow since October, 2019.
• Maharashtra has got back the top place in the country as FDI recipient.
• It has got back its position as recipient of the highest FDI in the country as per the data on FDI released by the Union government.

Topic: Reports and Indices

4. India’s coal demand is expected to increase by 3.5% annually till 2026, according to the International Energy Agency (IEA).

• In its latest coal report, IEA said it estimates India’s coal demand to rise to 1,397 million tonnes (mt).
• Coal demand in India accounted for 14% of the global demand. It increased by 9% Y-o-Y or 97 mt to 1,162 mt.
• It is expected that the demand have increased by 8% or 98 mt in 2023.
• IEA forecasts 2.4% annual growth in coal consumption for power generation for the next three years.
• IEA said renewable energy generation is forecast to grow by 12% annually.
• IEA estimates moderate increase in coal for power generation of 69 mt to 2026.
• Coal demand for non-power purposes is expected to increase significantly.
• IEA said Met coal has the smallest share of Indian coal consumption.
• IEA estimates non-power thermal coal and lignite consumption to have increased by 12 mt in 2023, to 243 mt.  
• India is the world’s second largest consumer of the coal.

Topic: Reports and Indices

5. National Council of Applied Economic Research (NCAER) has made secondary data-based estimate of logistics cost in India.

• As per the estimate, logistics cost in India was 7.8% to 8.9% of GDP in 2021-22.
• The estimate was part of a report on the assessment of logistics costs in India by the Department for Promotion of Industry and Internal Trade (DPIIT).
• DPIIT Secretary Rajesh Kumar released the report on logistics cost in India on 14 December 2023.
• The NCAER report presents a baseline aggregated logistics cost estimate.
• It also presents a framework for long-term logistics cost calculation.
• The government had released a National Logistics Policy. It aimed at reducing logistics cost to below 10% (of GDP).
• It also aimed to improve India’s ranking in the World Bank’s Logistics Performance Index (LPI) from 38th at present to below 25.
• The report noted logistics costs should be estimated on a regular basis (preferably annually).
• National Council of Applied Economic Research is India’s oldest and largest independent, non-profit, economic policy research think tank.

Topic: Miscellaneous

6. The number of women voters is projected to be greater than men voters in 2029, according to SBI’s economic research department (ERD).

• SBI’s ERD has projected women voter turnout might increase to 55% and men voter turnout might decline to 45% in 2047 (probable election year 2049).
• As per ERD’s analysis, the voter turnout increased by 13.7 crore to 55 crore. Out of this, 26 crore were women.
• It was 5.5 times more than the average voter turnout from 1962 to 2009 as per the ERD’s analysis.
• In 2019, the voter turnout increased to 62 crore. Out of this, 30 crore were women.
• At the current rate of polling, total voter turnout could touch 68 crore in 2024. Out of this, women voters could be 33 crore (49%).
• In a special report, the ERD said total voter turnout could touch 73 crore in 2029.
• The ERD put emphasis on the idea that the contribution of women to the economy is always underestimated.
• On the basis of NSS data, ERD’s analysis shows that the total contribution of unpaid women to the economy is around ₹22.7 lakh crore. This is almost 7.5% of GDP of India.
• One of the best examples of women's empowerment given in the report was the "MP (Madhya Pradesh) MukhyaMantri Ladli Behna scheme."

Topic: Banking System

7. Ujjivan SFB and ICICI PruLife have entered into a bancassurance partnership.

• Ujjivan Small Finance Bank and ICICI Prudential Life Insurance have entered into a bancassurance partnership for the distribution of life insurance products.
• As part of partnership, Ujjivan SFB will offer ICICI PruLife’s protection, long-term savings and retirement products to its customers through its network of branches across the country.
• IRDAI had in 2022 opened the bancassurance channel for insurers to increase insurance penetration.
• Bandhan Bank has been authorised by RBI to disburse pensions on behalf of Indian Railways.
• With this authorisation, Bandhan Bank will be allowed to give pensions to all former employees of the Ministry of Railways.
• It will have access to nearly 50,000 Indian Railways retirees every year on average across all offices of Indian Railways.
• Bandhan Bank is a private sector bank. It is headquartered in Kolkata. Dr. Anup Kumar Sinha is its current chairman. Chandra Shekhar Ghosh is its MD and CEO.

Topic: Reports and Indices

8. As per Mercer’s survey, Hyderabad has the best ‘quality of living’ in India.

• According to the Quality of Living Index 2023 released by Mercer, Hyderabad is in the top spot in terms of ‘quality of living’ in India.
• Hyderabad attained the 153rd spot in the Quality of Living Index 2023.
• Pune has the second-best ‘quality of living’ in India. It has secured the 154th position in Mercer’s Quality of Living City Index.
• Vienna (Austria), Zurich (Switzerland) and Vancouver (Canada) are the top three cities in the Quality of Living Index 2023.
• This index evaluates the quality of life for employees working abroad. It has taken data from more than 500 cities all over the world.
• Quality of Living Index is based on different factors like climate, schools and education, disease and sanitation standards, violence and crime, and physical remoteness.
• In the Quality of Living Index 2022 Pune and Hyderabad both were at the 143rd position.
• In 2022, Mumbai was the most expensive Indian City.

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