January 16, 2024 | Your One-Stop Solution for Daily Preparation
The Reserve Bank of India | Explained
The Reserve Bank of India (RBI) stands as the cornerstone of India's economic stability, functioning as the country's central bank. Established to regulate the currency and credit system, its role extends to formulating and implementing monetary policies crucial for maintaining economic equilibrium.
Highlights of the Day
1.Modi-Putin Phone Call: Strengthening India-Russia Ties, BRICS Coordination, and a Focus on Diplomacy Amid Global Challenges
Indian Prime Minister Narendra Modi and Russian President Vladimir Putin held a "good conversation," discussing their "special and privileged strategic partnership." They agreed to outline a roadmap for future initiatives and reviewed progress on bilateral cooperation. Both leaders expressed interest in intensifying ties, wished success in upcoming elections, and emphasized coordinating on the BRICS agenda. The call also addressed international issues, including the situation around Ukraine. The discussion follows a meeting of national security advisors in Davos and India's stance against war, promoting dialogue for conflict resolution. The annual summit between the leaders faces scheduling challenges[1].
2. Jaishankar's Iran Visit: Addressing Regional Tensions, Maritime Threats, and Humanitarian Concerns
Indian External Affairs Minister S Jaishankar expressed grave concern over ship attacks in India's vicinity during his visit to Iran, emphasizing the impact on India's energy and economic interests. Amid escalating tensions in the region, he discussed ties with President Raisi and strategic cooperation on the Chabahar port. Jaishankar reiterated India's stance against terrorism, called for avoiding civilian casualties in conflicts, and urged parties to embrace dialogue. He addressed the maritime shipping threats, urging a swift resolution. The minister also highlighted the humanitarian crisis in Gaza, emphasizing the need for sustainable humanitarian corridors[2].
3. Red Sea Shipping Crisis Threatens India's Exports to Europe: Impact and Strategies
The Red Sea shipping crisis poses a significant threat to India's exports to Europe, with 80% of outbound shipments passing through the Red Sea region. This comes at a time when India's exports to the European Union (EU) have already slowed due to the Russia-Ukraine war and potential environmental trade measures. Increased attacks on shipping vessels in the Red Sea since mid-November have led to rising costs, surcharges, and delays, impacting goods like agriculture and textiles. The disruption may prompt India to explore alternate trade routes, with officials planning a coordinated response to safeguard Indian trade interests in the face of global challenges[3].
4.India Makes Significant Strides: Multidimensional Poverty Drops from 29% to 11% in Nine Years
India's multidimensional poverty rate significantly decreased from 29.17% in 2013-14 to 11.28% in 2022-23, according to a NITI Aayog discussion paper. Approximately 24.82 crore people escaped multidimensional poverty in the past nine years, with states like Uttar Pradesh, Bihar, Madhya Pradesh, and Rajasthan experiencing the sharpest declines. Despite a slightly slower reduction in deprivation severity between 2015-16 and 2019-21, the share of MPI poor in India's total population decreased faster after 2015-16. The study, based on NFHS data, suggests India is on track to achieve Sustainable Development Goals related to poverty reduction well before 2030[4].
5.India's Trade Deficit Narrows to Three-Month Low in December, Defying Global Trends
India's trade deficit in December narrowed to $19.8 billion, a three-month low, driven by a slowdown in imports due to falling commodity prices. Merchandise exports grew 0.97% to $38.45 billion, defying the fiscal year's previous slowdown trend. Despite disruptions in cargo movement due to security concerns in the Red Sea, outbound shipments remained resilient. Higher demand for engineering goods, electronics, and pharmaceuticals contributed to export growth. The trade deficit decline was attributed to better-than-expected exports. Core exports rose 5.4%, while key sectors like gems & jewellery and drugs & pharmaceuticals witnessed growth. Gold imports surged 156% to $3.03 billion. Services exports contracted 10%, resulting in a surplus of $14.63 billion[5].
Source: The Hindu | TOI
Practice Questions for Prelims
Q1: Which of the following statements about the Deccan Plateau is correct?
I. The Deccan Plateau is situated between the Western Ghats and the Eastern Ghats.
II. The Godavari and Krishna rivers flow through the Deccan Plateau.
III. The Deccan Plateau is primarily composed of fertile alluvial soil.
a) Only I
b) I and II
c) II and III
d) I, II, and III
Q2: Which of the following statements about the Red Data Book is correct?
I. The Red Data Book is a record of endangered species.
II. It is published by the Conservation International.
III. The Red Data Book classifies species into different categories based on their conservation status.
a) Only I
b) I and III
c) II and III
d) I, II, and III
Q3: Consider the following statements about the National Stock Exchange (NSE) of India:
I. NSE was established in 1992.
II. The benchmark index of NSE is the Sensex.
III. NSE is the oldest stock exchange in India.
a) Only I
b) I and II
c) II and III
d) I, II, and III
Q4: The 'Office of Profit' is a term associated with which constitutional provision in India?
a) Right to Equality
b) Anti-defection law
c) Right to Freedom of Speech
d) Separation of powers
Q5: Which of the following elements is a key component of chlorophyll?
a) Iron
b) Zinc
c) Magnesium
d) Calcium
Today’s Question for Mains Answer Writing
Examine the functions and powers of the Reserve Bank of India (RBI) and evaluate its recent policy measures in addressing economic challenges.
Need help in writing or evaluation?
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