Banking Awareness of 4, 5, 6 and 7 May 2025

Topic: Reports and Indices

1. India ranks at 130 in the Human Development Index 2025.

• India ranked at 133 in the Human Development Index (HDI) 2024.
• UNDP stated that India has the highest self-reported AI skills penetration.
• With an HDI value increasing from 0.676 in 2022 to 0.685 in 2023, India remains in the medium human development category.
• Life expectancy rose from 58.6 years in 1990 to 72 years in 2023, the highest recorded since the index began.
• India’s life expectancy reaching its highest level since the launch of the index is evidence of its robust recovery from the pandemic and its investments and commitment to long-term human well-being.
• According to UNDP, India’s HDI value has increased by over 53 per cent since 1990, growing faster than both the global and South Asian averages.
• While health and education inequality have improved, income and gender disparities remain significant.
• As per the report, 20% of Indian AI researchers now remain in India.
• AI is being developed and deployed to solve complex challenges at scale such as farmers accessing insurance, credit, and advisories in regional languages.
• HDI 2025 rank:

• Human Development Index (HDI):
  • HDI is part of the Human Development Report (HDR), released by UNDP, which ranks 193 countries.
  • The HDI is a geometric mean of normalised indices for each of the three dimensions of human development — a long and healthy life, being literate, and having a decent standard of living.

Topic: Infrastructure and Energy

2. According to a report, India will have 123 million EVs by 2032.

• According to a joint report by the India Energy Storage Alliance (IESA) and Customised Energy Solutions (CES) titled “India Electric Vehicle Charging Infrastructure Market Overview”, India could see up to 123 million EVs on its roads by 2032.
• For India to achieve sustainable growth and net-zero emissions by 2070, there is a need to adopt electric vehicles (EVs).
• The report outlines three scenarios for EV growth by 2032:
  • Worst Case: 49 million EVs
  • Business-as-Usual (BAU): 60 million EVs
  • National EV Targets (NEV) Scenario: 123 million EVs
• The National EV scenario is based on the EV30@30 ambition, assuming that by 2030, EV penetration reaches 80 per cent for electric two and three-wheelers, 30 per cent for private electric four-wheelers, 70 per cent for commercial cars, and 40 per cent for electric buses-fully aligning with NITI Aayog’s vision for transport electrification.
• India had roughly 76,000 cumulative public and captive charging points in 2024, with a combined installed capacity of 1.3 GW.
• According to the President of IESA, India’s cumulative installed EV charging points (public and captive) will need to grow nearly 12 to 28 times, from around 76,000 in 2024 to between 0.9 million and 2.1 million by 2032 to support the projected EV growth.
• Installed charging capacity must also increase more than 17 times, rising from 1.3 GW to 23 GW, depending on EV adoption and infrastructure utilization levels.
• In addition, the report forecasts a rise in electric commercial vehicles by 2032:
  • Electric four-wheelers: up to 10 million
  • Electric buses and trucks: up to 1.1 million
• India’s EV growth has been fuelled by supportive government policies, such as the FAME-II scheme, which offers demand incentives for electric two-wheelers, three-wheelers, and four-wheelers, along with capital subsidies for public charging infrastructure.
• As per the report, India is set to emerge as a leader in electric mobility, fostering both environmental sustainability and economic growth.

Topic: Agriculture and Allied Sectors

3. India became the first country to develop genome-edited rice varieties.

• India has achieved a global milestone by becoming the first nation to develop genome-edited rice varieties.
• The first two genome-edited rice varieties were launched by Agriculture Minister Shivraj Singh Chouhan in New Delhi.
• ICAR institutions have developed the varieties to meet the nutritional demands of the growing population.
• The first rice variety, DRR Dhan 100 Kamala, has been derived from Samba Mahsuri and matures 15–20 days earlier with a 25% higher yield.
• The second variety, Pusa DST Rice 1, is tolerant to salinity and alkalinity, giving 30% more yield under saline conditions.
• These varieties have been developed for Andhra Pradesh, Bihar, Uttar Pradesh, Telangana, Karnataka, Tamil Nadu, Chhattisgarh, Maharashtra, West Bengal, and Madhya Pradesh.
• An estimated 4.5 million tons of extra paddy can be produced if these are cultivated across 5 million hectares of recommended areas.
• The development is considered a major step toward climate-resilient farming and is expected to boost India’s second green revolution.

Topic: MoUs/Agreements

4. India and UK finalised a free trade agreement (FTA) and social security pact.

• The India-UK Free Trade Agreement (FTA) has been finalized by Prime Minister Narendra Modi and his British counterpart Keir Starmer.
• The India–UK FTA eliminates or significantly reduces tariffs on a wide range of Indian goods.
• Key sectors expected to benefit from India-UK FTA include:
  • Textiles & apparel, which will have greater competitiveness against countries like Bangladesh and Vietnam
  • Leather & footwear, which will have increased access to high-end UK retail markets
  • Gems & jewellery, with a boost for India’s handcrafted and diamond processing exports
  • Pharmaceuticals, with streamlined regulatory processes that will accelerate generic drug approvals
  • Agriculture & processed foods, with better access for value-added products, including tea, spices, rice, and ready-to-eat segments.
• Currently, Textiles and clothing face up to 12 per cent tariffs in the UK.
• The FTA is expected to double bilateral trade by 2030. It is also expected to add GBP 4.8 billion annually to the British economy by 2040.
• The elimination of the double contribution burden has addressed a long-standing challenge faced by IT companies and other service providers operating in the UK.
• The double contribution convention exempts Indian workers temporarily employed in the UK and their employers from paying social security contributions in the UK for three years.
• The Organization of Economic Cooperation and Development (OECD) defines social security contributions as mandatory payments, typically made by both employees and employers, that fund various social insurance programmes like retirement, disability, and survivor benefits.

Topic: Indian Economy

5. Moody’s slashed India’s 2025 growth forecast to 6.3%.

• Amid US policy uncertainty, Moody’s lowered India’s growth forecast by 20 basis points to 6.3 per cent in 2025.
• In its Global Macro Outlook 2025-26 (May update), for 2026, it has retained the growth projection at 6.5 per cent for India.
• It expects the Reserve Bank of India to lower benchmark policy rates further to support growth.
• Moody’s said geopolitical stresses, like tension between India and Pakistan, also pose a potential downside risk to its baseline growth forecasts.
• Moody’s lowered global growth projections for 2025 and 2026 further on account of the policy shifts and more intense policy uncertainty than previously expected, especially in the largest two economies, the US and China.
• As per Moody’s, policy uncertainty and trade tensions, especially between the US and China, could dampen global trade and investment with consequences across the G-20.
• Moody’s lowered GDP growth projections for the US to 1 per cent in 2025 and 1.5 per cent in 2026 from 2 per cent and 1.8 per cent.
• For China, Moody’s expects growth to be 3.8 per cent in 2025 and 3.9 per cent in 2026, lower than 5 per cent in 2024.
• S&P Global cuts India’s growth forecast to 6.3% in FY26.

Topic: Reports and Indices

6. India’s services PMI increases to 58.7 in April 2025.

• Owing to an increase in export orders, the Purchasing Managers’ Index (PMI) for services rose to 58.7 in April, up from 58.5 in March.
• The services sector contributes over 54 per cent to GDP growth, holding the largest share in the Indian economy.
• India's services activity is accelerating at its fastest pace since July 2024.
• The survey report said that Indian services companies increased their workforce numbers for the thirty-fifth consecutive month in April.
• Purchasing Managers’ Index (PMI):
  • The index is based on the responses of purchasing managers from 400 companies, and reflects the mood in advance before official data is released.
  • A PMI reading above 50 signals expansion, while below 50 means contraction.

Topic: Miscellaneous

7. The 7^th edition of Khelo India Youth Games 2025 inaugurated by PM Narendra Modi.

• For the first time, Bihar is hosting the Khelo India Youth Games from May 4 to May 15, with events scheduled across five districts—Patna, Nalanda (Rajgir), Gaya, Bhagalpur, and Begusarai.
• More than 8,500 athletes with 1,500 technical officials across the country will participate in competitions spread in 28 different sports subjects.
• The Prime Minister emphasized that a strong sports culture has been promoted in India through government initiatives like Khelo India.
• Over one thousand Khelo India Centres have been established across the country to nurture young athletes.
• Traditional games such as Gatka, Kalaripayattu, and Kho Kho have been included under the Khelo India platform to ensure wider participation from rural talent.
• The Prime Minister stated that India's sports development reflects the nation’s soft power and its ambition to host the 2036 Olympics.

Topic: World Economy

8. 100% tariff on Foreign-made films announced by Trump.

• A 100% tariff on all movies produced outside the United States has been ordered by US President Donald Trump.
• The Department of Commerce and the United States Trade Representative (USTR) have been authorized to begin the process of imposing a 100% tariff on all foreign-made films entering the United States.
• The film industry in America is dying at a rapid pace, as other countries are offering all kinds of incentives to pull our filmmakers and studios away from the United States.
• Trump claimed the American film industry is being deliberately undermined through foreign subsidies and propaganda.
• The policy was described as a necessary step to protect national security and cultural sovereignty.

Topic: Summits/Conferences/Meetings

9. Finance Minister Nirmala Sitharaman attended the 58th Annual Meeting of the Asian Development Bank held in Milan, Italy.

• She reaffirmed India’s commitment to private sector-driven economic growth.
• India is actively enhancing its business environment through ongoing policy and regulatory reforms.
• She highlighted key measures such as the Goods and Services Tax, the Insolvency and Bankruptcy Code, and the reduction in corporate tax rates.
• Other major initiatives include the Production-Linked Incentive scheme, the GatiShakti National Master Plan, and the Startup India program.
• President Masato Kanda expressed ADB’s full support for India’s development priorities.
• 58th Annual Meeting of the Asian Development Bank in Milan, Italy began on May 4, 2025. It began with the theme “Sharing Experience, Building Tomorrow”.

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