Topic: Reports and Indices
1. International Energy Agency (IEA) said by 2030, more than one-third of the increase in global oil demand would come from India.
- IEA said that of the 3.2 million barrels per day (mb/d) increase in oil consumption between 2023 and 2030, more than one-third will come from India.
- It also said that India will surpass China. India is the world’s second largest crude oil importer.
- India presently consumes approximately 5 million barrels per day (mb/d).
- It is expected to record an increase of 1.2 mb/d in the coming seven years.
- According to an IEA report, from 2023 to 2030, India is expected to be the single biggest contributor to the growth in the world's oil demand.
- According to the IEA, because India's economy is still in initial stages of economic development, it will consume oil at a higher rate than that of other nations.
- The IEA projects that demand will increase from 5.5 mb/d in 2023 to 6.6 mb/d in 2030.
- By 2027, India's demand growth will outpace China's. In absolute terms, China, the world's biggest energy consumer, will still surpass India.
- This quicker increase is also a result of rising living standards, the emergence of a growing middle class, and shifting consumer purchasing patterns.
- Roughly 90% of personal mobility and 70% of freight movement occurs via travel by road.
- International Energy Agency:
- It was founded in November 1974. It is headquartered in Paris, France. It has 31 member countries.
- It is an intergovernmental organisation. It provides analysis and data on the entire global energy sector.
Topic: Indian Economy/Financial Market
2. Pharma exports reached $20.40 billion in the April to December months of 2023, registering an 8.2% increase.
- From April to December of 2023, pharmaceutical exports reached $20.40 billion, up from $18.85 billion over the same period in the previous fiscal year.
- The increase in exports from April to December of the current fiscal year was mostly due to a double-digit increase in US exports of 11.5%.
- This increased total exports to NAFTA (the United States, Canada, and Mexico) by 10.4%.
- At almost 73%, formulations continue to hold the largest share of exports.
- Along with growth in the West Asia and North Africa (WANA) area, exports to the UK are rising at a rate of 20.5%.
- Russia's exports are steadily declining and have fallen to 10th position from 7th in previous years.
Topic: RBI
3. RBI decided to keep the repo rate unchanged at 6.5 per cent for the sixth consecutive time.
- In the Reserve Bank of India's Monetary Policy Committee, the repo rate was kept unchanged at 6.5%. The decision was taken by a majority of 5-1.
- The repo rate was last changed in February 2023 when it was increased from 6.25 per cent to 6.5 per cent.
- The Marginal Standing Facility rate has also been kept unchanged at 6.75 per cent and the Standing Deposit Facility rate has been kept at 6.25 per cent.
- Equated monthly instalments (EMIs) on home, car and other loans will remain unchanged.
- Retail inflation reached to a four-month high of 5.69 per cent in December 2023.
- For 2024-25, the inflation target will remain at 4.5% in Q1; 4 per cent in Q2; 4.6 per cent in Q3; and 4.7 per cent in Q4.
- The real GDP growth for FY 2024-25 has been projected at 7 per cent.
- The six members voted by a 5:1 majority to continue with the withdrawal of accommodation monetary policy stance.
- Retail inflation to average 5.4% this fiscal. It will come down to 4.5% in FY25.
- RBI will bring in an offline functionality in CBDC-Retail for transactions in regions where there is poor or limited internet connectivity.
- RBI will review regulatory framework for electronic trading platforms.
- RBI will review it to enable market makers access offshore Exchange-traded products (ETPs) offering permitted Indian Rupee products.
- Next MPC meeting is scheduled during April 3-5, 2024.
Topic: Banking System
4. The liquidity deficit of the banking system decreased to ₹1.40 lakh crore.
- According to RBI data, the liquidity deficit in the banking sector decreased from a recent peak of ₹3.46-lakh crore (on January 24th) to approximately ₹1.40-lakh crore on February 4.
- The liquidity deficit in the banking sector decreased as a result of the government increasing spending.
- The rates in the overnight money market were positively impacted by the decreasing liquidity shortfall as well.
- From roughly 6.50 to 6.75 percent last month, the weighted average rate declined to 6.33%.
- Because the government released contract payments, salaries, and other payments during the first week of February, there was a decrease in the liquidity imbalance.
- A rise in the liquidity shortfall to between ₹2-lakh crore and ₹2.5-lakh crore is possible.
- This is possible because of withdrawals from the banking system brought on by the mid-February GST payments.
Topic: Reports and Indices
5. Purchasing Managers’ Index (PMI) increased to six-month high level at 61.8 in January.
- PMI increased from 59 in December 2023 to 61.8 in January 2024.
- In January, India’s services sector performed exceptionally well.
- Job opportunities also registered an increase in January 2024.
- Services sector’s contribution in Gross Value Added (GVA) is more than 53%.
- The new export business index accelerated. This signaled that India’s services exports remained robust.
- S&P Global compiles PMI from responses to questionnaires sent to a panel of around 400 service sector companies.
- Consumer (excluding retail), transport, information, communication, finance, insurance, real estate and business services were the covered sectors.
- PMI data for manufacturing was released on 1 February. It increased from 18-month low of 54.9 in December 2023 to 56.5 in January 2024.
- HSBC India Composite PMI Output Index increased to 61.2 in January from 58.5 in December.
Topic: Appointments
6. Mio Oka appointed as ADB's Country Director for India on 5 February.
- She succeeded Takeo Konishi who has been promoted as ADB Director-General for South Asia at Manila headquarters.
- Oka will be responsible for leading Asian Development Bank (ADB) operations in India.
- Her role is to lead the implementation of ADB's Country Partnership Strategy, 2023-2027.
- Since beginning operations in India in 1986, ADB has been a steadfast partner in supporting the country's development goals and economic growth.
- Currently, India is ADB's fourth largest shareholder and one of its largest borrowers since 2010.
- ADB was established in 1966 and has 68 members.
Topic: RBI
7. RBI approved HDFC Bank group to acquire up to 9.5 pc in 6 banks.
- HDFC Bank group entities received Reserve Bank of India’s (RBI) approval to acquire "aggregate holding" of up to 9.5 per cent of the paid-up share capital or voting rights in six banks.
- These banks include Axis Bank, Survoday Small Finance Bank, ICICI Bank, Bandhan Bank, YES Bank and IndusInd Bank.
- The approvals were granted after the applications submitted by HDFC Bank (as a promoter/sponsor of the Group) to the RBI on December 18, 2023
- RBI's approval will remain valid for one year till 4 February 2025.
- The aggregate holding’ includes shareholding by the bank, entities under the same management/ control, mutual funds, trustees and promoter group entities, among others.
- HDFC Mutual Fund held 2.76 per cent voting rights in ICICI Bank, 2.49 per cent in Axis Bank, and 2.23 per cent in IndusInd Bank. HDFC Life Insurance held a 2.92 per cent stake in Suryoday SFB.
- Till December, HDFC Pension Management had a 1.88 per cent stake in IndusInd Bank. HDFC Bank held a 3 per cent stake in YES Bank.
- The HDFC Group includes HDFC Bank, HDFC Mutual Fund, HDFC Life Insurance Company Limited, HDFC ERGO General Insurance Company Limited and others.
Topic: Awards and Prizes
8. REC Limited has won the Best Green Bond - Corporate Award at The Asset Triple A Awards for Sustainable Finance 2024.
- It won the award for issuance of $750 million USD Green Bonds in April 2023.
- This was the first USD Green Bond issuance from India after India assumed G20 Presidency.
- It was also the largest-ever Senior Green Bond Tranche by a South or South-East Asian issuer.
- The award underscores REC Limited's commitment to sophisticated capital market instruments.
- The Asset Triple A Awards recognize those organizations that have excelled in their respective industry. The awards are adjudicated by The Asset’s board of editors.
- REC Limited is a Maharatna Central Public Sector Enterprise under the Ministry of Power.
- It is registered with RBI as a Non-Banking Finance Company (NBFC), and Infrastructure Financing Company (IFC).
Topic: Reports and Indices
9. Mukesh Ambani has secured the second rank in the Brand Guardianship Index 2024.
- Mukesh Ambani has secured the top position among Indians and second globally in the Brand Guardianship Index 2024.
- Mukesh Ambani with a score of 80.3 is ahead of Microsoft’s Satya Nadella, Sundar Pichai of Google, Apple's Tim Cook, and Tesla's Elon Musk.
- Huateng Ma of China-based Tencent with a BGI score of 81.6 has secured the top position in the ranking.
- The 2024 survey highlighted Ambani's leadership in the 'Diversified' conglomerates.
- N Chandrasekaran, chairman of Tata Sons climbed from eighth to fifth place in the 2023 ranking.
- Anish Shah of Mahindra & Mahindra secured the sixth position while Salil Parekh of Infosys secured the 16th position.
- The Brand Guardianship Index recognises CEOs who effectively build business value while considering the interests of all stakeholders.
Topic: Awards and Prizes
10. Defence Minister Rajnath Singh honoured Dr. Bina Modi with the 'Outstanding Business Woman of the Year - 2023' Award.
- Dr. Bina Modi was presented with the award at a conference by the Indo-American Chamber of Commerce.
- The conference was on 'Strengthening Indo-US Relationship in Amritkal-Aatmanirbhar Bharat'.
- The award recognizes Dr. Bina Modi’s remarkable contributions to the industry.
- Her contributions place her among the few women chairpersons of Fortune500 and ET500 India companies.
- Dr. Bina Modi is the chairperson of Modi Enterprises.
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