Business, Economy & Banking Current Affairs MCQs

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The Asian Development Bank (ADB) has approved a $200 million loan to improve solid waste management and sanitation in 100 Indian cities under the Swachh Bharat Mission 2.0. This funding will be used for building waste processing facilities and community sanitation projects. The agreement, signed by Juhi Mukherjee and Mio Oka, aims to strengthen urban waste management systems and advance India’s environmental and public health goals.

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The Indian government, chaired by Prime Minister Narendra Modi, approved a Rs 5,792 crore investment in Nepal’s 669 MW Lower Arun Hydroelectric Project. Located in Sankhuwasabha district, this project, awarded to SJVN Ltd., will generate 2,900 million units of energy annually. This initiative highlights India’s commitment to enhancing renewable energy collaboration with neighboring countries.

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Bharat Heavy Electricals Limited (BHEL) secured a Rs 10,000 crore contract from Damodar Valley Corporation (DVC) for Koderma Thermal Power Station Phase-II in Jharkhand. The project includes supplying and installing boilers, turbines, generators, and systems. BHEL will also handle civil works and commissioning, emphasizing its crucial role in improving India’s thermal power infrastructure and solidifying its status in the energy sector.

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The yen carry trade became notable after the Bank of Japan raised interest rates and cut bond purchases, causing the yen to strengthen. Investors reacted by unwinding their positions to prevent losses, which led to a selloff in US tech stocks and affected global markets, including Asia. A carry trade involves borrowing in a country with low interest rates and investing in assets in a country with higher returns.

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Catastrophe bonds (CAT bonds) are facing scrutiny over their risk-reward balance, especially in the Caribbean. These bonds offer high returns to investors who take on the risk of major disasters like hurricanes or earthquakes. Issuers, such as insurers or governments, use these bonds to fund coverage for catastrophic events. Investors earn periodic interest but risk losing the principal if a disaster meets predefined triggers in the bond contract. In Jamaica, CAT bonds have delivered around 15% returns, but issuers are facing high costs. There are concerns about the fairness of bond terms, especially after Hurricane Beryl, leading Caribbean leaders to call for a review.

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According to the Bureau of Energy Efficiency (BEE), Karnataka leads India with 5,765 public EV charging stations, with 85% (4,462) located in Bengaluru Urban district. This puts Karnataka ahead of Maharashtra, Uttar Pradesh, and Delhi in EV charging infrastructure. Energy Minister K.J. George highlighted Karnataka’s commitment to electric mobility, supported by initiatives like the FAME scheme, BESCOM investments, and public-private partnerships. Karnataka introduced India’s first EV policy in 2017 and plans to develop model EV cities statewide. The 2024 State Budget announced 2,500 new EV charging stations via PPP and ₹35 crore investment for 100 more in collaboration with electricity companies.

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India’s startup sector showed signs of recovery in the first half of the year, attracting investor interest in niche areas. “Green shoots” refer to signs of economic recovery during tough times. The term symbolizes new plant growth, representing hope and renewal in the economy. UK Chancellor Norman Lamont first used “green shoots” in 1991 to describe recovery in the UK economy. Green shoots indicate positive trends like increased industrial production, rising car sales, and stable cement and steel prices. These signs are seen as welcome progress, especially after a recession.

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The Union Ministry of Commerce and Industry recommended an anti-dumping duty on aluminium foil imported from China. Anti-dumping duty is a tariff imposed on foreign imports priced below fair market value. Dumping occurs when a product is exported at a price lower than in its domestic market. The duty matches the price difference between the import price and market value in the exporting or other similar markets. It aims to protect local businesses from unfair competition by foreign imports. The World Trade Organization (WTO) allows anti-dumping measures to ensure fair competition. Legal action requires evidence of genuine harm to domestic industries.

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India has surpassed China in the MSCI Emerging Markets Investable Market Index (IMI), becoming the largest country by weight for the first time. The MSCI Emerging Markets Investable Market Index (IMI) includes large, mid, and small cap stocks from 24 emerging markets. With 3,355 companies, the IMI covers about 99% of the free float-adjusted market capitalization in these countries.

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Operation Flood, launched in 1970, was pivotal in establishing India’s dairy sector, leading to the White Revolution. This initiative aimed to increase milk production and improve rural livelihoods through cooperative societies. As a result, India became the world’s largest milk producer, with a daily procurement target set to rise significantly by 2028-29. The government is now focusing on “White Revolution 2.0” to enhance cooperative coverage and empower dairy farmers, particularly women, while generating employment in the sector.