Business, Economy & Banking Current Affairs MCQs

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The Indian government has decided to revise the base year for GDP calculation from 2011-12 to 2022-23. This change, announced by Minister Rao Inderjit Singh, aims to reflect structural economic changes and ensure accurate economic data. The advisory committee, ACNAS, comprising members from the Reserve Bank of India, state governments, and academia, will assist in this revision, expected to be completed by early 2026. Regular updates align with international practices for economic data collection.

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The National Highways Authority of India (NHAI) has introduced ‘Rajmarg Saathi’, advanced Route Patrolling Vehicles (RPVs) aimed at enhancing road safety and incident management on national highways. Equipped with AI video analytics, these vehicles monitor highway conditions and respond to emergencies. The RPVs will replace vehicles after 300,000 km or three years of operation, ensuring optimal service. This initiative reflects NHAI’s commitment to improving traffic flow and safety for road users across the country.

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Switzerland will suspend the Most-Favoured-Nation (MFN) clause in its Double Taxation Avoidance Agreement (DTAA) with India from January 1, 2025. This may lead to higher tax burdens for Indian companies in Switzerland and Swiss investors in India, affecting bilateral investments. MFN means trade concessions granted to one partner must be extended to all partners, promoting fairness. It aims to replace power-based policies with a rules-based system. Exemptions include bilateral agreements, special access for developing countries, and trade blocs like the EU. MFN can be removed without formal procedure, as seen when India revoked it for Pakistan in 2019.

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India leads globally in remittances for 2024, with an estimated inflow of $129 billion, followed by Mexico, China, the Philippines, and Pakistan. Remittances to low- and middle-income countries (LMICs) are projected at $685 billion in 2024, with South Asia seeing an 11.8% growth. Remittance growth in 2024 is estimated at 5.8%, up from 1.2% in 2023, outpacing financial flows like Foreign Direct Investment (FDI). FDI has declined by 41% over a decade, while remittances rose by 57%, driven by job market recovery in high-income countries like the U.S. Remittances provide crucial financial support to families globally.

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The Ministry of Road Transport and Highways will use advanced ‘Intelligent Machines’ for National Highway construction under the AIMC system. AIMC (Automated & Intelligent Machine-aided Construction) is an advanced system introduced by the Ministry of Road Transport and Highways (MoRTH) for efficient National Highway construction. AIMC integrates intelligent machines with real-time data sharing to speed up construction and improve road quality. It aims to boost productivity, ensure durable roads, and reduce reliance on traditional post-construction surveys. The initiative addresses challenges like outdated technologies, uncoordinated data, and poor contractor performance, which often cause delays.

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The Mumbai-Ahmedabad High-Speed Rail (MAHSR) Corridor is a project between India and Japan. India and Japan are finalizing bullet train designs for the Mumbai-Ahmedabad High-Speed Rail (MAHSR) Corridor to suit Indian conditions. Japanese Shinkansen trains are being modified for higher luggage capacity, functionality in over 50°C temperatures, and resistance to India’s dusty conditions. More than 50% of civil construction is complete across Gujarat, Maharashtra, and Dadra and Nagar Haveli, with rail welding operations underway. Indian Railways is building domestic capabilities for manufacturing high-speed trains while importing from Japan. The Integral Coach Factory (ICF) and BEML are set to produce bullet trains with 280 kmph speeds by 2026, featuring full air-conditioning, reclining seats, accessibility facilities, and entertainment systems.

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The 55th GST Council meeting took place in Jaisalmer, Rajasthan, with key decisions made to improve tax rates, trade, and compliance. GST exemptions: Gene therapy and contributions by insurance companies for the Motor Vehicle Accident Fund. GST on Fortified Rice Kernel (FRK) reduced to 5%. GST is not applicable on pepper and raisins when supplied by an agriculturist. Caramel popcorn will attract 18% GST. The GST Council is a constitutional body responsible for recommending GST implementation policies in India.

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The Ministry of Statistics and Programme Implementation (MoSPI) released the Annual Survey of Unincorporated Sector Enterprises (ASUSE) for 2023-24. The survey measures economic and operational characteristics of unincorporated non-agricultural establishments in manufacturing, trade, and services (excluding construction). It collects data on workers, Gross Value Added (GVA), emoluments, fixed assets, loans, ownership and registration. The survey aids policymaking and supports National Accounts Statistics and ministries like MSME and Textiles.

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IIT Madras is collaborating with the Ministry of Agriculture on Project VISTAAR to enhance agricultural extension through digitalization. Project VISTAAR (Virtually Integrated System to Access Agricultural Resources) aims to strengthen the agricultural extension system. The project highlights opportunities for start-ups to innovate and improve agriculture and allied sectors. Start-ups can help farmers with technologies for better productivity and market information. IIT Madras’ Centre for Research on Start-ups developed a platform with data on 12,000 agriculture-related start-ups. The MoU enables farmers and stakeholders to access start-up capabilities and improve agricultural efficiency.

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India’s GDP is projected to grow by 6.4% in FY 2024-25, a decline from 8.2% in FY 2023-24. This marks the lowest growth rate in four years, indicating a slowdown in economic performance. The Ministry of Statistics & Programme Implementation (MoSPI) provides these estimates, which also highlight a marginal increase in nominal GDP to 9.7%. The decline in growth reflects challenges in various sectors, including agriculture, construction, and services, impacting overall economic health.