Banking Awareness of 2, 3 and 4 November 2024

Topic: Reports and Indices

1. India would require 10 million new jobs each year to maintain 6.5% GVA (Gross Value Added) through FY30 according to Goldman Sachs report.

• The real estate sector could be stimulated by incentivizing affordable housing developments.
• The real estate sector employs more than 80% of the labour force within construction.
• As a result, job creation across various skill levels will improve.
• Job creation for low- to middle-skill workers will be supported by shifting fiscal incentives toward labour-intensive manufacturing sectors.
• Despite government's Production-Linked Incentive (PLI) schemes benefitting capital-intensive industries, Goldman Sachs lays emphasis on encouraging shift towards more labour-intensive sectors.  
• About 67% of manufacturing jobs are in labour-intensive fields, such as textiles, food processing, and furniture.
• During the past two decades, India added about 196 million jobs.
• About 66% of these jobs were created in the last decade.
• Workers have moved from agricultural to construction and service roles.
• Construction accounts for about 13% of total jobs. The services sector contributes about 34% of total employment.
• Female participation, particularly in rural areas is the driver for an increase in India's Labour Force Participation Rate (LFPR) from 50% in FY18 to 60% in FY24.

Topic: Taxation

2. A timeline of one year has been set to complete investigation into matters of tax evasion by exporters/importers.

• Central Board of Indirect Taxes & Custom (CBIC) has set this timeline in a bid to facilitate ease of doing business.
• CBIC has said again that summons should not be issued to senior management (CEOs, CFOs, general managers, of large companies or PSUs) at the first instance.
• CBIC’s direction is part of its new guidelines related to investigation of commercial intelligence/fraud (CI) cases.
• These are different in nature from the category in general referred to as outright smuggling cases.
• According to the guidelines, “Every investigation must be initiated only after the Commissioner’s approval”.
• The intelligence inputs and relevant aspects shall be appropriately analysed before initiating an investigation.
• Guidelines minimise interface with exporters/importers as they call for collecting details before an investigation is initiated.
• The time frame specified for appearance or producing information needs to be reasonable.

Topic: Indian Economy/Financial Market

3. More than Rs 94,000 crore have been withdrawn by foreign investors from Indian markets in October.

• In October 2024, foreign investors became net sellers.
• They have withdrawn shares worth more than Rs 94,000 crore on account of high valuations in domestic markets and strong performance of the Chinese market.
• This outflow follows investment of more than Rs 57,700 crore in September 2024 by the Foreign Portfolio Investors (FPIs).
• This investment in September 2024 was at nine-month high level.
• Earlier, more than 61,000 crore rupees were withdrawn by FPIs in March 2020.
• In 2024, FPIs have been net buyers except for the months of January, April, May and October.
• Foreign investment flow into Indian equity markets will be determined by global factors like geopolitical developments, future direction of interest rates and progress in Chinese economy.

Topic: Miscellaneous

4. National Stock Exchange (NSE) has launched websites in eight more languages to commemorate 30 years of operations.

• NSE has also launched a mobile app.
• The languages include Assamese, Bengali, Kannada, Malayalam, Odia, Punjabi, Tamil, and Telugu.
• Now, the total number of languages supported by the NSE has increased to twelve.
• Trading in the equities market started on the NSE on 3rd November 1994.
• National Stock Exchange (NSE):
  • It is based in Mumbai. It is under the ownership of banks and insurance companies.
  • It is world’s 7th largest stock exchange by total market capitalization.
  • NSE's flagship index is NIFTY 50. It was launched in 1996 by NSE.

Topic: Reports and Indices

5. HSBC India Manufacturing Purchasing Managers’ Index (PMI) increased to 57.5 in October.

• The HSBC India Manufacturing PMI increased from September’s eight-month low of 56.5 to 57.5 in October.
• The increase in index highlighted that output growth accelerated last month.
• The accelerated output growth was driven by faster increase in total new orders and international sales.
• In October, the export orders recovered from a 18-month low in September.
• Exporters reported stronger gains from markets across Asia, Europe, Latin America, and the US.
• This small increase in the demand also helped in job creation by manufacturing firms.
• Nearly one in ten companies reporting new job addition.
• HSBC India Manufacturing Purchasing Managers’ Index (PMI) is compiled by S&P Global.

Topic: World Economy

6. Japan’s 2-year bond yield reached 16-year high level.

• The two-year Japanese Government Bond (JGB) yield increased to 0.47%, its highest-level since December 2008.
• The Bank of Japan (BoJ) kept ultra-low interest rates on 31st October 2024.
• The 10-year Japanese Government Bond (JGB) yield increased 1.5 bps to 0.95% and the 20-year JGB yield rose 1 bp to 1.785%.
• The 30-year JGB yield was flat at 2.205%. The 40-year JGB yield was flat at 2.545%.

Topic: Indian Economy/Financial Market

7. Over Rs 1 Lakh Cr have been invested by Domestic Institutional Investors (DIIs) in Indian Equities in October.

• DIIs invested over one lakh core rupees in Indian Equities in October.
• This marked their highest monthly purchase and came amid selling by foreign portfolio investors (FPIs).
• DII investments have reached nearly 4.41 lakh crore rupees.
• This is driven by growing retail participation through mutual funds.
• Earlier, in March 2024, the highest recorded monthly DII inflows were recorded.
• In March 2024 DII inflows stood at ove 56,350 crore rupees.
• Foreign institutional investors (FIIs) sold equities worth 5,813.30 crore rupees on October 31.
• Domestic institutional investors bought equities worth 3,514.59 crore rupees on October 31.

Topic: Miscellaneous

8. Economist Bibek Debroy passed away on 1 November 2024.

• He served as chairman of PM's Economic Advisory Council since 2017.
• He was chairman of the Expert Committee for Infrastructure Classification and Financing Framework for Amrit Kaal under the Union finance ministry.
• He has been a member of NITI Aayog from 2015 till 2019.
• He received the Padma Shri in 2015. He was born in Meghalaya.
• He was known for translating the Bhagwad Gita, Mahabharata, Ramayana and the Puranas into English.

Topic: Indian Economy/Financial Market

9. Maharashtra's share in India’s GDP has declined from 15.2% to 13.3%.

• Maharashtra has the highest share of India's GDP.
• As per the working paper from the Economic Advisory Council to the PM (EAC-PM), Maharashtra's share has declined from 15.2% in 2010-11 to just 13% in 2020-21 and 13.3% in 2023-24.
• In the last two decades, Gujarat’s share in India’s GDP has increased from 7.5% in 2010-11 to 8.1% in 2022-23.
• Gujarat's relative per capita income compared to the national average is higher than Maharashtra's.
• Maharashtra's economic performance has remained almost steady between 1960-61 and 2023-24.
• Sikkim (319.1%) reported the highest relative per capita income, followed by Goa with a figure of 290.7% for 2022–23.
• In 2023-24, Delhi (250.8%), Telangana (193.6%), Karnataka (180.7%), Haryana (176.8%), and Tamil Nadu (171.1%) are ahead of Maharashtra in terms of relative per capita income.

Topic: Appointments

10. Praveena Rai took over as CEO and MD of Multi Commodity Exchange of India.

• On October 31, Multi Commodity Exchange of India (MCX) Ltd announced that Praveena Rai has officially assumed the position of Managing Director and Chief Executive Officer with effect from October 31, 2024.
• At the annual general meeting held on September 26, Rai's appointment was confirmed by the company's board, regulators and shareholders.
• Rai's tenure as MD and CEO is for five years.
• Before joining MCX, Rai served as Chief Operating Officer at National Payments Corporation of India (NPCI).

Read Banking Awareness PDF -2, 3 and 4 November 2024