Economy Current Affairs January 2025

 

Economy

Rupee Depreciation

Why in News? Rupee breached ₹85/$ — sharpest depreciation in 2 years.

Meaning: Fall in INR value in floating exchange rate system.

Reasons:

  • Low central bank balance sheet confidence
  • Illiquidity; short-term forex debt > assets
  • Inflation, FPI outflows, trade deficit
  • Global factors: Fed hikes, crude prices

Positive Impacts: Export boost, higher remittances.

Negative Impacts: Import inflation, widening CAD, capital flight.

Way Forward: RBI intervention, export boost, INR settlement.

Economy

Internationalisation of Rupee

Why in News? RBI liberalised FEMA rules for INR use globally.

Key FEMA Changes: NRI INR accounts abroad, wider SNRR/SVRA use.

Benefits: Lower dollar dependence, FX stability, global INR debt.

Challenges: INR volatility, partial convertibility, low global use.

Steps Taken: UPI global, SVRAs with 22 nations, Masala bonds.

Inflation

WPI Base Year Revision

Why in News? Working Group set up to revise base year 2011–12 → 2022–23.

WPI: Measures wholesale price changes of 697 items.

Shift to PPI: Includes services, avoids multiple counting.

Significance: More accurate inflation measurement.

Fiscal Policy

Fiscal Health Index 2025

Why in News? NITI Aayog released first FHI for states.

Top Performers: Odisha, Chhattisgarh, Goa.

Findings: Debt risks for WB & Punjab; strong capex in MP & Goa.

Significance: Competitive federalism, transparency.

Survey

Household Consumption Expenditure Survey

Why in News? NSSO released HCES after 11 years.

Key Findings:

  • Rural MPCE ₹4,122; Urban ₹6,996
  • Rural–urban gap reduced
  • Inequality decreased

Significance: Key for CPI weights, GDP revision.

Digital Economy

Central Bank Digital Currency

Why in News? US halted Digital Dollar; India continues pilots.

Benefits: Inclusion, low cost, cross-border speed.

Challenges: Cyber risks, privacy, interoperability.

India’s Digital Rupee: Retail + wholesale; pilot with 15 banks.

Digital Economy

India’s Digital Economy

Why in News? MeitY released OECD-based digital economy study.

Drivers: UPI, BharatNet, Aadhaar, DBT, India Stack.

Challenges: Cybercrime, data gaps, low digital literacy.

Way Forward: Clear AI & data laws, universal broadband.

Governance

Cashless Treatment for Road Accident Victims

Why in News? Govt launched nationwide scheme.

Key Features: ₹1.5 lakh for 7 days, eDAR, MVAF reimbursement.

Need: India = 11% of global road deaths.

External Sector

India Secures 14.3% of Global Remittances

Why in News? India received $129 bn — highest globally.

Reasons: Large diaspora; skilled migration.

Significance: FX buffer; stabilises CAD.

Economy

India: Fastest Growing Economy

Why in News? World Bank projected 6.7% growth.

Drivers: Services exports, infra reforms, capex.

Fiscal

Government T-Bill Borrowing Plan

Why in News? Govt to borrow ₹3.94 lakh crore via T-bills.

T-Bills: 91d, 182d, 364d — zero coupon.

Banking

NBFC Upper Layer List 2024–25

Why in News? RBI released updated NBFC-UL list.

Examples: LIC HFL, PNB Housing, Shriram Finance.

Banking

BAANKNET Portal

Why in News? Finance Ministry launched e-auction portal.

Use: Aggregates all PSB property auctions.

Fintech

PPI & UPI Interoperability

Why in News? RBI allowed PPI users to make/receive UPI payments.

Trade

Role of Trade in Reducing Food Insecurity

Why in News? UNCTAD report on trade & food security.

Positives: Steady supply & price stability.

Food Economy

Revised OMSS Policy

Why in News? Rice reserve price cut to ₹2,250/quintal.

Use: Stabilises food prices.

Agriculture

Project VISTAAR

Why in News? IIT Madras + Agri Ministry launched AI-enabled platform.

Logistics

LEADS Report 2024

Achievers: Gujarat, Haryana, Assam, Chandigarh.

Fast Movers: AP, Bihar, HP.

DPI

Entity Locker

Why in News? MeitY launched cloud storage for enterprises.

Infrastructure

Z-Morh Tunnel

Specs: 6.4 km; all-weather access to Sonamarg–Leh.

Infrastructure

Banihal Bypass (NH-44)

Reduces travel time to 7 minutes; key for security & logistics.

Railways

Anji Khad Bridge

India’s first cable-stayed rail bridge — 331 m high, 725 m long.

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