Business, Economy & Banking Current Affairs MCQs

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The World Bank approved a $1.5 billion loan to India for developing its low-carbon energy sector, following a similar loan in 2023. The low-carbon energy sector includes fuels like hydrogen and biofuels, which emit less carbon than fossil fuels. India aims for net-zero carbon emissions by 2070, supported by initiatives like the National Green Hydrogen Mission, which uses renewable energy for hydrogen production.

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The Bihar government has recently demanded a Minimum Support Price for makhana, the popped kernel of the foxnut. Makhana is cultivated in tropical and subtropical aquatic environments, thriving in stagnant water bodies. India is the largest global producer, with Bihar as the leading state. Optimal conditions include temperatures of 20-35°C and annual rainfall of 100-250 cm. Nutritionally, makhana is low in fat and high in carbohydrates, protein (15-20%), and minerals.

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The Union Budget 2024-25 proposes creating twelve industrial parks under the National Industrial Corridor Development Programme. The government will develop investment-ready industrial parks in or near 100 cities, partnering with states and the private sector. Industrial parks, like Andhra Pradesh’s Sri City SEZ, foster employment, shared infrastructure, enhanced productivity, and attract Foreign Direct Investment, expanding manufacturing activity.

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The Chief Economic Advisor emphasized the need for private investors to prioritize sustainable investments, noting the low “greenium” from India’s sovereign green bond offerings. Greenium, or green-premium, refers to the savings issuers gain on coupon payments for green bonds, which have lower yields than conventional bonds due to their sustainable appeal. Green bonds finance green projects like renewable energy, electric buses, and energy efficiency. These bonds attract investors willing to accept lower returns for sustainability benefits, reducing both physical and financial risks. This makes green projects financially attractive for issuers.

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The U.S. became India’s second-largest LNG supplier, overtaking the UAE, but Qatar still the largest supplier. LNG is growing as a green energy substitute. In 2023, the U.S. also became the world’s top LNG exporter, surpassing Qatar and Australia due to past investments in liquefaction. Increased U.S. supply is due to lower LNG prices and closer proximity to India via the Cape of Good Hope.

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The Health Ministry has asked the Sports Authority of India (SAI) and the Board of Control for Cricket in India (BCCI) to stop surrogate advertising of tobacco and alcohol products by sportspersons. Surrogate advertising uses the brand image of one product to promote another, often due to legal restrictions on advertising the original product. Brands like liquor and tobacco companies use this method to subtly promote their products by advertising similar or different items under the same brand name. This helps maintain brand recognition and legally spread their message, a process known as “brand extension.”

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The central government secured $500 million from the Asian Development Bank (ADB). This funding is aimed at improving tertiary healthcare and medical education in Maharashtra. Four new medical colleges with attached tertiary care hospitals will be established. The project focuses on climate resilience, gender inclusivity, and underserved districts. It will also increase hospital bed capacity in the state. Plans include recruiting 500 new doctors to strengthen the healthcare system.

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The Insurance Regulatory and Development Authority of India (IRDAI) has set up a task force to tackle issues and promote the growth of surety bond insurance. A surety bond is a risk transfer mechanism where an insurer guarantees that a contractor or principal will fulfill their contractual duties. The three parties involved are: Principal: The contractor or owner, Obligee: The party requiring the bond, often a government entity and Surety: The insurer providing the financial guarantee. Surety bonds offer a more comprehensive solution compared to traditional bank guarantees, especially useful in sectors like construction.

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RBI Governor Shaktikanta Das announced that the Reserve Bank of India (RBI) is piloting the Unified Lending Interface (ULI) to transform lending. ULI aims to provide quick, frictionless credit, especially for rural and smaller borrowers. It connects banks, NBFCs, fintech firms, and borrowers for efficient credit disbursement. ULI focuses on serving agricultural and MSME borrowers with unmet credit needs. It allows seamless digital information flow, including land records, to lenders. ULI reduces documentation requirements and speeds up credit delivery. It uses standard APIs for easy digital access and integration. The platform is consent-based and allows real-time tracking of loan applications.

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The world’s first fast-charging e-bus is named ‘Veera Mahasamrat.’ It was launched in Bengaluru by Veera Vahana and Exponent Energy. The bus aims to improve travel by eliminating range anxiety with its fast charging. It will first operate on the Bengaluru-Hyderabad route. Four charging stations will be set up along this route to support the e-bus. The launch of ‘Veera Mahasamrat’ is a major step in promoting sustainable transportation in the region.