Business, Economy & Banking Current Affairs MCQs

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According to recent 2025 data, the three countries with the largest rare earth oxide (REO) reserves are China, Brazil, and India. India has the world’s third-largest rare earth reserves with about 6.9 million tonnes of Rare Earth Oxide (REO). It ranks after China with 44 million tonnes and Brazil with 21 million tonnes of reserves. Despite this, India produced only 2,900 tonnes of rare earths in 2024, ranking seventh globally. China led production with 270,000 tonnes, followed by the United States with 45,000 tonnes. India holds 6–7% of global reserves but contributes less than 1% of global production.

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As per recent report by Indian government, India surpassed Japan to become the world’s fourth-largest economy with Gross Domestic Product (GDP) of USD 4.18 trillion. India is expected to overtake Germany to become the third-largest economy by 2030 with projected GDP of USD 7.3 trillion. India remains the world’s fastest-growing major economy despite global trade uncertainties. Real GDP grew 8.2% in Quarter 2 of 2025–26, rising steadily from previous quarters. Growth is driven mainly by strong private consumption and domestic demand. The United States (US) ranks first and China second in global economy size.

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Sagarmala Finance Corporation Limited (SMFCL), India’s first maritime-focused non-banking financial company (NBFC), has started lending operations. It has sanctioned loans worth around ₹4,300 crore as approved at its 51st board meeting on 30 December 2025. SMFCL’s board-approved strategy targets a total lending of ₹8,000 crore in FY26, with a borrowing limit of ₹25,000 crore. SMFCL was inaugurated on 26 June 2025 by Union Minister of Ports, Shipping and Waterways Sarbananda Sonowal o provide sector-specific financial solutions to ports, MSMEs, startups, and maritime institutions.

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A Sakthivel has been appointed as the Chairman of the Apparel Export Promotion Council (AEPC), marking his fifth term leading the organisation. Apparel Export Promotion Council (AEPC) was established in 1978. It was set up under the Foreign Trade (Development and Regulation) Act, 1992. AEPC is the official body representing apparel exporters in India. It functions under the Ministry of Textiles, Government of India. Its main role is to promote and support exports of Indian garments and textiles globally.

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A United Nations (UN) report projects India’s GDP growth at 6.6% in 2026, while global growth is expected to slow to 2.7% due to geopolitical risks and policy uncertainty. The report notes that strong demand in major markets may partially offset the impact of US tariff hikes on India. The UN lowered India’s growth estimate from 7.4% but it aligns with the International Monetary Fund (IMF) forecast, identifying India as the only major economy expected to grow above 6% in 2025–26. Global growth faces risks of a prolonged slowdown, insufficient for broad-based development, leaving many countries and communities behind.

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Tripura Gramin Bank became the first Gramin Bank in India to introduce a solar-powered ATM van, promoting sustainable and inclusive banking. The initiative earned the bank the prestigious SKOCH Silver Award for innovative governance practices. The bank operates around 150 branches across remote areas of Tripura, supporting financial inclusion. The solar-powered ATM van improves banking access in rural and electricity-scarce regions. The initiative was inaugurated by Union Finance Minister Nirmala Sitharaman on 21 July 2023. The bank currently runs three such eco-friendly ATM vans.

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India’s eight core infrastructure industries grew 3.7% in December 2025, driven by higher production of cement, steel, coal, electricity, and fertilisers. The Index of Eight Core Industries (ICI) rose to 175.7 points from 169.4 points in December 2024. Core industries include coal, crude oil, natural gas, refinery products, fertilisers, steel, cement, and electricity, accounting for 40.27% of the Index of Industrial Production (IIP).

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State Bank of India launched CHAKRA, meaning Centre of Excellence, to finance sunrise sectors vital for India’s economic growth. It will act as a knowledge-based platform supporting technology-driven and sustainable industries. CHAKRA focuses on renewables, data centres, electric mobility, batteries, semiconductors, green hydrogen, decarbonization, and smart infrastructure. The centre aims to boost investments, global value chain integration, and Net Zero targets. It will promote technology and Artificial Intelligence innovation and provide advisory support. CHAKRA will collaborate with policymakers, banks, industry, startups, and global institutions.

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Union Budget 2026–27 announced the Mahatma Gandhi Gram Swaraj Initiative to strengthen traditional rural industries. It focuses on khadi, handloom, and handicrafts sectors across India. The initiative aims to improve global market access, branding, and strong market linkages. It seeks to make traditional industries more competitive and economically sustainable. The programme ensures stable livelihoods for artisans and weavers. It targets weavers, village industries, rural youth, and beneficiaries of One District One Product (ODOP).

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Reserve Bank of India issued draft revised guidelines for the Lead Bank Scheme for public comments. Lead Bank Scheme was introduced in December 1969 on the recommendation of the Nariman Committee. The objective of scheme is to coordinate banks and development agencies to increase bank finance to priority and other sectors. It also promotes the role of banks in overall rural development. Under the scheme, one bank is assigned as the Lead Bank for each district. The Lead Bank coordinates credit institutions and Government efforts at district level.