Indian Economy - Current Affairs for February, 2016

Indian Economy Current Affairs for February, 2016

Month wise coverage of Indian Economy Current Affairs helps you improve your general knowledge and prepare for all competitive exams like IBPS, Bank PO, SBI PO, RRB, RBI, LIC, Specialist Officer, Clerk, SSC, UPSC, Railway etc. This section is updated daily with the most important events.

Preparing Indian Economy Current Affairs February, 2016

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  • Month & Year   
▼ RBI extends USD 2 billion currency swap arrangement to SAARC nations till 2017   [02-24-16]

To enhance economic cooperation and strengthening financial stability, RBI has extended USD 2 billion currency swap arrangement to SAARC nations till mid November 2017. As per the arrangement, RBI is to provide swap arrangement for up to USD 2 billion in foreign currency and Indian rupee. SAARC swap arrangement was offered by RBI to SAARC nations in November 2012 and facilities will be made available to Afghanistan, Bangladesh, Bhutan, Maldives, Nepal, Pakistan and Sri Lanka. The swap amount available to various member central banks has been arrived at broadly based on two months import cover subject to a floor of USD100 million and a maximum of 400 million per nation.

▼ Government to provide banking service through CSCs   [02-22-16]

Common Service Centres are being channelised and withdrawal facility introduced here in order to provide banking services to each village of the nation by leveraging technology. Facility has been introduced so that banking access point is there in every village. Village level entrepreneurs have earned INR 438 crore as commission so far, financing the startup revolution in India and making the gram panchayat digitally literate.

▼ Public Investment Board approves India Post payment bank proposal   [02-22-16]

Public investment Board has given the approval for an INR 800 crore proposal from India Post for establishing a payments bank. This bank will target unbanked and under-banked customers in rural, semi-rural and remote areas, with a focus on providing simple deposit products and money remittance services. The pilot for the payments bank is set to start from January 2017, and the full-fledged operations may start by March. Close to 40 global financial conglomerates including the World Bank and Barclays have shown interest to partner the postal department for setting up the bank.

▼ Government will map 1.5 lakh bridges through integrated system   [02-22-16]

GoI will be mapping 1.5 lakh bridges through an integrated system called IBMS. This stands for Integrated Bridge Management System. When completely operational, it will be the largest such system across the globe. Around 46,645 bridges have been digitally mapped by Germany. IBMS has mapped close to 50,000 bridges and culverts numbering 1.5 lakh in the nation. System that is an initiative under the Make in India drive will have smallest details of culverts and bridges and address safety as well as security concerns. IDEC Engineers have been appointed as project consultant for this and the system will contain data such as national identity number, latitude and longitude classifications and SES.

▼ India well on the way to average economic growth of 7.5% heralding industry 4.0   [02-22-16]

India’s average economic growth rate was 7.5 percent in 2015 and India grew at a faster rate than China for this year, just as IMF had estimated. India is currently well on its way to a 4th Industrial Revolution/Industry 4.0 where the new face of global industries has come to the fore. This is the age of advanced manufacturing, robotics, 3D printing and quantum engineering.

▼ Indian economy to grow at 7.4% in the next fiscal: OECD   [02-19-16]

Indian economy is set to grow at 7.4% within the next fiscal. OECD says Indian economy will grow at this robust rate though modest recovery is expected in advanced economies. Organisation for Economic Cooperation and Development has raised the Indian growth forecast as against 7.3% projected in November 2015. India is set to grow by 7.4% in 2016 and 7.3% in 2017 according to the Interim Economic Outlook released by the OECD. It also said that China would continue to rebalance its economy from manufacturing to services and growth is forecast at 6.5% in 2016 and 62% in 2017.

▼ RBI revises NBFC norms   [02-19-16]

RBI has revised norms for NBFC firms stipulating that there should be on board approved limit for underwriting commitments with the aim to mitigate credit risk. RBI has also raised threshold for reporting frauds from INR 25 lakh to INR 1 crore for NBFC. Another point is that factoring services should be extended in respect of invoices which represent genuine trade transactions. Factoring business is a financial service whereby firm sells accounts receivable for the factoring company which then pays discounted value to seller under receivable receipts. As far as NPA classification is concerned, factoring with resource basis is where exposure would be reckoned on the assignor.

▼ Ministry of Mines and Steel launches Uncover/ Khanij Khoj Project   [02-18-16]

Minister of Mines and Steel, Mr. Narendra Singh Tomar launched the Khanij Khoj/Uncover project of the Geographical Survey of India. This is one of the flagship programmes of the draft NMEP. The project will be carried out in two selected parts of the country to look for buried/concealed mineral deposits. The main components of this initiative are as follows:

  • Characterising the geological cover of India
  • Studying lithospheric architecture
  • Resolution of 4D geofynamic and metallogenic evolution
  • Isolating the distal footprints of ore despots

▼ Quick Estimates of IIP released for December 2015   [02-15-16]

CSO has released Quick Estimates of IIP or Index of Industrial Production with the base year of 2004-2005 for December 2015 compiled using the following 15 source agencies:

  • Department of Industrial Policy & Promotion (DIPP);
  • Indian Bureau of Mines;
  • Central Electricity Authority;
  • Joint Plant Committee, Ministry of Steel;
  • Ministry of Petroleum & Natural Gas;
  • Office of Textile Commissioner;
  • Department of Chemicals & Petrochemicals;
  • Directorate of Sugar & Vegetable Oils;
  • Department of Fertilisers;
  • Tea Board; Office of Jute Commissioner;
  • Office of Coal Controller;
  • Railway Board;
  • Office of Salt Commissioner and Coffee Board.
  • General Index for the month of December 2015 was pegged at 183.4 which is 1.3 percent lower as against December 2014. The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of December 2015 stand at 137.5, 192.0 and 183.2 respectively, with the corresponding growth rates of 2.9 percent. 10 of 22 industry groups in the manufacturing sector showed negative growth during the month of December 2015.

▼ USTDA, Govt of AP ink pact to develop Vizag as a smart city   [02-15-16]

USTDA and the Andhra Pradesh government have inked pact to develop Vizag as a Smart City. The US Trade and Development Agency has inked an agreement with the AP government for developing infrastructure, data systems and communication in Vishakhpatnam for it to become a smart city.

▼ CSO releases CPI figures for 2016   [02-15-16]

CSO has revised the Base Year of the CPI from 2010=100 to 2012= 100 w.e.f January 2016. In addition to this, Consumer Food Price Index (CFPI) for all India Rural, Urban and Combined are also being released for January 2016. Inflation rates (on point to point basis i.e. January 2016 over January 2015), based on General Indices and CFPIs are given as follows: General Indices (Provisional) for the month of January 2016 for Rural, Urban and Combined are 128.1, 124.2 and 126.3 respectively. CFPI for Rural, Urban and Combined for the same month are 131.1, 131.0 and 131.1 respectively.

▼ India ranks 37th in international IP index   [02-12-16]

US Chamber of Commerce has ranked India as 37 of 38 nations in the 4th annual International IP Index -Infinite Possibilities- which measured the IP environment in India alongside 37 other economies. Only Venezuela has scored low. Index was produced by GIPC or Global Intellectual Property Centre and India’s overall score fell from 7.05 to 7.23. Report also noted a decrease through introduction of Global Measure of Physical Counterfeiting in the current edition, in which India was ranked 7th.

▼ CSO releases Advance Estimates of National Income for FY 2015-2016   [02-11-16]

Central Statistics Office under Ministry of Statistics and Programme Implementation has released Advance Estimates of National Income for the current fiscal along with QE of GDP for Q3. Growth in GDP during 2015-2016 was projected at 7.6% as against growth rate of 7.2% in 2014-2015. Real FDP is likely to reach the value of INR 113.51 lakh crore rupees, according to AE and QE figures.

▼ Indian economy likely to grow by 7.9% in FY 2017: CRISIL   [02-10-16]

According to CRISIL, the Indian economy is expected to grow at 7.9 percent in the fiscal commencing April which is much less than earlier forecast of 8.1% on account of intensification of international economic downturn. Economy’s modest recovery has been shaped by excellent fortune on crude oil and commodities. Economy has weathered two successive monsoon failures apart from slower economic growth cycle. Next fiscal will also see implementation of OROP and 7th Pay Commission.

▼ TRAI bars TSPs from charging differential rates for data services   [02-9-16]

Telecom Regulatory Authority of India on 8th February 2016 barred TSPs from charging differential rates for data services prohibiting Free Basics and Airtel Zero Platform. While no service provider can provide discriminatory tariffs for data services in association with content. no service provider can also enter into discriminatory tariffs for data services and reduced tariff has only been permitted for accessing or providing emergency services. Financial punishments will also be imposed for regulation contravention and the regulation may be reviewed after a period of 2 year. Fine of INR 50,000 will be levied each day, subject to maximal value of INR 50 lakh for violation of regulation by service providers.

▼ Maharashtra to set up international arbitration centre in Mumbai   [02-9-16]

Maharashtra has made the plan to set up the first international arbitration centre in Mumbai ahead of the maiden Make in India Week to be held from February 13 to 18. Overseas disputes arbitration is set to yield revenue worth INR 2 billion. Singapore International Arbitration Centre showed in 2013 that of the total 259 new cases, Indian companies made the contribution to the highest number of filing at 85. MCIA will open up avenues for business as well as legal talent across the state and evolve framework in accordance with global standards followed by SIAC, ICC and LCIA.

▼ RBI to buy back inflation indexed bonds which will mature in 2023   [02-8-16]

Reserve Bank of India said the government will buy back inflation indexed bonds/IIBs maturing in 2023 via reverse auction in February 11th. Not so effective bonds have received a below par response due to lack of marketing and associated tax issues. GoI has also notified repurchase of 1.44 percent inflation indexed government stock 2023 via a reverse auction for total amount of INR 6500 crore. Bonds were launched as alternative to gold as an investment in high current account deficit. Repurchase will be prematurely held to redeem government stock through utilization of surplus cash balance and it was an ad-hoc move.

▼ Indian economy to grow at 7.4% in 2016: NCAER   [02-8-16]

According to the National Council of Applied Economic Research, Indian economy will grow at 7.4% in the current fiscal (2015-2016). GDP growth rate forecast is 7.4% for 2015-2016 and 2016-2017. Prospects for agriculture sector in 2015-2016 were poor due to a deficient rainfall. Agricultural growth during the first half of the current year fell to 2.0% from 2.4% for the first half of 2014-2015.

▼ IT exports to grow at slower pace in FY17: NASSCOM   [02-5-16]

IT exports are all set to grow at a slower pace of 10-12% in the fiscal 2017 according th NASSCOM. The export will be hit by currency fluctuations and the weakening of the rupee against the US dollar. IT export industry is looking at 12.3% growth in 2015-2016 closing on March 31.IT services and software industry body had forecasted a growth of 12-14 percent in exports. Rupee industry had fallen to a 29 month low against the dollar, in recent times. Currency movement influences the industry which earns close to 80% of the revenue from US and Europe. Currency movement also influences the industry which earns close to 80% of the revenue from EU and US.

▼ Cabinet approves formation of JV with states for rail projects   [02-4-16]

Cabinet has approved the formation of JV with states for rail projects to ensure wider participation of states. Railways has formed JV companies with state government for mobilisation of resources for quick implementation of rail projects. JV companies will now be responsible for project identification, land acquisition and financing in addition to government funding and monitoring. Cabinet presided by PM Narendra Modi has taken the decision that JV companies would be formed with equity participation of Railways Ministry and concerned state governments. Each JV will have paid up initial capital of INR 100 crore associated with the project quantum of projects to be undertaken. The initial paid up capital is limited to INR 50 crore for each state.

▼ RBI relaxes norms for startups   [02-3-16]

RBI has relaxed numerous rules including FDI norms for boosting start up activity within the nation. Start ups will now be allowed to receive foreign venture capital investment regardless of which sector they operate in. New norms will permit share transfer from foreign venture capital investors to other residents/non residents. Proposal for permitting startups to get foreign venture capital investments is a positive step as presently