Business, Economy & Banking Current Affairs MCQs

Notes:
In July 2025, India is exploring the use of Catastrophe Bonds (Cat Bonds) to improve disaster risk financing and climate resilience. Cat Bonds are hybrid financial instruments combining features of insurance and debt. They help governments transfer risks from natural disasters like cyclones, floods, and earthquakes to global investors. If a defined disaster occurs, investors lose part or all of their principal, which is used for relief and reconstruction. If no disaster occurs during the bond term, investors get back their full principal with high interest.

Notes:
Recently, the Ambassador of Japan to India led a high-level business delegation to the Dholera Special Investment Region (SIR). The visit aimed to explore strategic cooperation in semiconductors and smart city development. Dholera SIR, India’s first greenfield smart industrial city, is located in Gujarat. The city focuses on advanced manufacturing, digital governance, and sustainable urban living. It is a key part of India’s vision to boost high-tech investments, particularly in the semiconductor sector

Notes:
Life Insurance Corporation of India (LIC) recently signed a Memorandum of Understanding (MoU) with the Department of Rural Development to promote Bima Sakhi Yojana in rural India. The MoU was signed during the financial inclusion conclave ‘Anubhuti’ held in Goa in July 2025. Bima Sakhi Yojana is a performance-based stipendiary scheme launched by Life Insurance Corporation of India (LIC) for women empowerment. Selected women receive training and monthly stipends for three years — ₹7,000 in the first year, ₹6,000 in the second, and ₹5,000 in the third. The scheme aims to appoint two lakh Bima Sakhis across India over the next three years.

Notes:
India has become Malaysia’s largest importer of germinated oil palm seeds in 2025. In 2024, India imported 3.03 million tonnes of palm oil, making up 17.9% of Malaysia’s total exports. India aims to expand palm oil cultivation to 1 million hectares by 2025-26 under the National Mission on Edible Oils-Oil Palm (NMEO-OP). Goal is to produce 2.8 million tonnes of crude palm oil by 2029-30. Currently, India has 3.7 lakh hectares under palm cultivation, focusing on northeast and island regions. Malaysia offers to collaborate if India provides land for local palm oil production.

Notes:
According to the Monthly Bulletin of Periodic Labour Force Survey (PLFS), India’s unemployment rate fell to 5.2% in July 2025 from 5.6% in June 2025. PLFS gives estimates of Labour Force Participation Rate (LFPR), Worker Population Ratio (WPR), and Unemployment Rate (UR). The survey is conducted by the National Sample Survey (NSO) under the Ministry of Statistics and Programme Implementation (MoSPI).

Notes:
The Globally Important Agricultural Heritage Systems (GIAHS) is a programme of the Food and Agriculture Organization (FAO) launched in 2002 at the World Summit for Sustainable Development. It was created to address threats to family farming and traditional agriculture such as climate change, displacement and biodiversity loss. Recently, the Minister of State for Agriculture informed the Lok Sabha that India has three GIAHS sites. Koraput in Odisha is known for paddy diversity, medicinal plants and tribal knowledge systems. Kuttanad in Kerala is a unique below-sea-level farming area with paddy, coconut, fishing and shell collection. Saffron Park in Kashmir is rich in saffron cultivation.

Notes:
State Bank of India (SBI) has launched a Centre of Excellence (CoE) for Micro, Small and Medium Enterprises (MSMEs) at the State Bank Academy (SBA), Gurugram. The Centre of Excellence (CoE) aims to strengthen the MSME ecosystem through capacity building, research, and industry collaboration, supporting India’s vision of becoming a developed nation. State Bank Academy (SBA) provides specialised training in Credit, International Banking, Risk & Compliance, and conducts Research & Development (R&D) in banking. Centre of Excellence (CoE) will develop case studies, research, and online knowledge repositories for MSMEs, including remote areas.

Notes:
On 3rd September 2025, the GST Council announced rationalisation of the Goods and Services Tax (GST) slab structure. The 12% and 28% tax slabs were abolished and a 40% GST rate introduced for luxury and sin goods. Fast-Moving Consumer Goods (FMCG) and consumer durable products will benefit from the revised rates. The reform is part of India’s 2025 GST policy transformation, the most ambitious fiscal reform in recent years. It aims to simplify tax structure, reduce rates on essential goods, and improve administrative efficiency. The changes balance government revenue needs with economic growth objectives.

Notes:
Recently, the Prime Minister inaugurated India’s first bamboo-based ethanol plant in Golaghat district, Assam. The Prime Minister also laid the foundation stone for a modern polypropylene plant in the same district. The bamboo-based bioethanol plant aims to boost industrial growth, green energy, renewable power, and create opportunities for farmers and youth. A steady supply of bamboo will be ensured with government support for local farmers in cultivation and procurement. Bamboo, previously restricted, is now allowed for industrial use, benefiting tribal communities in Northeast India.

Notes:
Union Minister Nitin Gadkari unveiled a roadmap at the International Value Summit 2025, New Delhi, to make India a global hub for automobiles, green mobility, and infrastructure. India has surpassed Japan to become the third-largest automobile market, aiming for No. 1 position in five years. The top two countries for global automobile manufacturing are China and the United States. India leads in electric vehicles, hydrogen fuel, and alternative fuels, with hydrogen trucks launched and pilots on 10 routes.