1. Coffee export increased by 1.66 % to 4 lakh tonne in 2022; Coffee Board of India
Tags: Economy/Finance
According to the Coffee Board of India data released on 2 January 2023 the total export of coffee from India rose by 1.66 per cent to 4 lakh tonnes in 2022 mainly due to the increase in instant coffee exports and re-exports. The total export in 2021 was at 3.93 lakh tonnes.
Main points of the data
- In value terms, coffee export was higher at Rs 8,762.47 crore in 2022 as against Rs 6,984.67 crore in the previous year.
- Italy, Germany and Russia are the major export destinations for Indian coffee.
- India exports both Robusta and Arabica varieties of coffee and also instant coffee.
- According to the Board's the export of Robusta coffee declined marginally to 2, 20,974 tonnes in 2022 from 2, 20,997 tonnes in the previous year.
- Similarly, export of Arabica fell 11.43 per cent to 44,542 tonnes from 50,292 tonnes.
- However, export of instant coffee increased 16.73 per cent to 35,810 tonnes in 2022 from 29,819 tonnes in the previous year.
- About 99,513 tonnes of coffee was re-exported in 2022, higher than 92,235 tonnes in the previous year.
- The unit per value realization remained higher at Rs 2, 18,923 per tonne as against Rs 1, 77,406 per tonne in the period.
Production of Coffee in 2022
- Coffee was introduced by a Sufi saint Baba Budan who brought the coffee beans from Arabia and planted them in his garden in Chikmagalur ,Karnataka during the 17th Century.
- Karnataka is the largest coffee producing state in India followed by Kerala and Tamil Nadu. These states are called traditional coffee growing areas in India.
- The other areas where coffee is grown are Andhra Pradesh, Odisha and North Eastern region. These states are called non-traditional coffee growing areas in India.
- India is the third largest producer and exporter of coffee in Asia. Vietnam is the largest producer of coffee in Asia followed by Indonesia.
- Brazil is the world’s largest producer of coffee, followed by Vietnam, Colombia and Indonesia.
- In India coffee is mainly produced in the shaded region of Eastern and Western Ghats regions.
Coffee Board of India
The Coffee Board is a statutory organization constituted under Section (4) of the Coffee Act, 1942 and functions under the administrative control of the Union Ministry of Commerce and Industry, Government of India.
The Board has a Central Coffee Research Institute at Balehonnur (Karnataka) with a Sub-Station at Chettalli (Karnataka) and Regional Coffee Research Stations at Chundale (Kerala), Thandigudi (Tamil Nadu), Narasipatnam (Andhra Pradesh) and Diphu (Assam).
Chief Executive Officer: Dr. K.G. Jagadeesha, IAS
Headquarters: Bengaluru
2. In 4:1 majority verdict, Supreme Court finds no flaw in demonetisation process
Tags: Economy/Finance National News
On January 02, 2023, a Constitution Bench of the Supreme Court by a 4:1 majority upheld the central government's decision to demonetise currency notes of Rs 500 and Rs 1,000 denominations six years ago in 2016.
Judgement of the Court
Justices S Abdul Nazeer, BR Gavai, AS Bopanna, V Ramasubramanian held that the Centre's notification dated November 8, 2016 was valid and satisfied the test of proportionality.
Justice BV Nagaratna, in his dissenting opinion, said that though demonetisation was well-intentioned, it should be declared illegal on legal grounds (and not on objective grounds).
Justice Nagaratna said the decision to demonetise Rs 500 and Rs 100 notes should have been made through legislation and not through notification.
The Supreme Court dismissed 58 petitions challenging demonetisation, saying that this decision related to the economic policy of the government cannot be withdrawn.
Along with this, the Supreme Court said that there was no flaw in this entire process of decision making.
The Supreme Court accepted the government's view that there were consultations between the Center and the RBI before demonetisation.
About demonetization
Demonetization refers to the decision of the government to revoke thelegal tender status of a currency note.
All the currencies issued by RBI are used as a legal tender because the value they bear is assured by the RBI.
Once a currency note is demonetised, it cannot be used.
On 8 November 2016, the Government of India announced the demonetisation of all 500 and 1,000 notes.
The government also announced the issuance of new 500 and 2,000 banknotes in exchange for the demonetised notes.
Objective of 2016 demonetisation
Curb Corruption- Corruption can also be controlled by reducing cash circulation.
Tackle Terrorism- High denomination notes like Rs 500 and Rs 1000 are often used in terrorist/naxalite activities, drug and human trafficking.
Eliminating Fake Currency - According to the annual report of RBI, during the year 2016-'17, fake notes worth Rs 41.5 crore were detected in the banking system in the form of old Rs 500 and Rs 1,000 notes.
Eradicate Black Money- Black money refers to cash that is not accounted for in the banking system or cash for which tax has not been paid to the state.
3. Ajay Kumar Srivastava to take over as the MD and CEO of the Indian Overseas Bank
Tags: Economy/Finance Person in news
Ajay Kumar Srivastava will take over as the Managing Director (MD) and Chief Executive Officer (CEO) of the Public sector Indian Overseas Bank from 1 January 2023. Prior to taking up the new role, Srivastava was serving as an executive director in the bank.
He will replace Partha Pratim Sengupta whose tenure ends on 31 December 2022.
Srivastava commenced his banking career as a probationary officer in Allahabad Bank in 1991. After serving over 27 years, he joined Indian Overseas Bank in October 2017.
Indian Overseas Bank
It is a public sector bank owned by the government of India
The Indian Overseas bank was founded by M. Chidambaram Chettyar in 1937.
It was nationalized by the government of India in 1969.
It has four branches and offices in Singapore, Hongkong, Thailand and Sri Lanka.
Headquarters: Chennai
Tagline of the bank: Good People to Grow With
4. RBI launches Utkarsh 2.0 for the period 2023-2025
Tags: National Economy/Finance
The Reserve Bank of India (RBI) Governor Shaktikanta Das on 30 December 2022 launched the second phase of the central bank’s medium term strategy for strengthening regulatory and supervisory mechanisms called Utkarsh 2.0.
The first strategy framework (Utkarsh 2022) covering the period 2019-2022 was launched in July 2019. It became a medium-term strategy document guiding the Bank’s progress towards realization of the identified milestones.
Utkarsh 2.0 like the Utkarsh 2022 has six Vision statements as well as Core Purpose, Values, and Mission statements. Collectively, they create a strategic guiding path.
The Vision in Utkarsh 2.0 that will guide the Reserve Bank of India over the period 2023-25 are:
- Excellence in performance of its statutory and other functions,
- Strengthened trust of citizens and Institutions in the RBI;
- Enhanced relevance and significance in national and global roles; • Transparent, accountable and ethics-driven internal governance;
- Best-in-class and environment-friendly digital and physical infrastructure; and
- Innovative, dynamic and skilled human resources.
Reserve Bank of India (RBI)
Reserve Bank of India was set up under the Reserve Bank of India act 1934. It started functioning from 1 April 1935.
It was nationalized in 1949 and now the government of India is the owner of RBI.
It has the power to regulate Banks under the Banking Regulation Act 1949.
It has the power to regulate the Non-Banking Financial Company (NBFC) under the RBI act 1934.
RBI is also the regulator of the digital payment system under the Payment and settlement act 2007.
Headquarters of RBI: Mumbai
Governor of RBI : Shaktikanta Das
5. Government hikes interest rates on Kisan Vikas Patra scheme by 0.20% for January-March 2023
Tags: Economy/Finance
The Union Ministry of Finance in an order released on 30 December 2022 has increased the interest rates on the Kisan Vikas Patra by 0.2% for the January -March 2023 quarter. It has also increased the interest rates of some small saving schemes 20 to 110 basis points for the January-March quarter. 100 basis points is equal to 1%.
The interest rates on the small savings scheme are revised after every quarter by the government.
Small Saving Schemes are deposit schemes of the government of India where the people are assured of safety and return and the government uses the money for development purposes. These schemes are operated through Post offices in India.
Unlike Banks where interest rates are decided by the banks, the interest rates in the small saving scheme are decided by the government of India.
New Interest rates on Small Saving Schemes
Name of the Scheme | Interest Rates (from 1 January 2023) |
Senior Citizens Savings Scheme | 8 % (earlier 7.6%) |
Kisan Vikas Patra | 7.2 % (earlier 7%). The amount will double in 120 months. |
Monthly Income Schemes | 7.1 % (earlier 6.7%) |
One year Term deposit (fixed deposit) with Post Office | 6.6 % (earlier 5.5 %) |
Two year Term deposit (fixed deposit) with Post Office | 6.8 %( earlier 5.7%) |
Three year Term deposit (fixed deposit) with Post Office | 6.9 %( earlier 5.8%) |
National Savings Certificate (NSC) | 7.0% (earlier 6.8 %) |
No Change in Interest rates of the following Small Saving Scheme
Scheme | Interest rates |
Public Provident Fund (PPF) | 7.1% |
Sukanya Samridhdhi Yojana | 7.6% |
Post Office Saving Account | 4% |
6. Ajit Kumar Saxena assume charge as the Chairman-cum-Managing Director of MOIL
Tags: Economy/Finance Person in news
Ajit Kumar Saxena has assumed the charge of Chairman-Cum-Managing Director of the public sector enterprise MOIL Limited.
Prior to this assignment, Shri Saxena held the position of Director (Operations) at RINL-Visakhapatnam Steel Plant. He has 36 years’ experience in the Steel Sector with wide experience in technical, operational and project management areas.
Ajit Kumar Saxena will remain in office till his retirement, 31st December 20225 or until further notice.
MOIL
MOIL is a Schedule “A” Miniratna Category-I Company under the Union Ministry of Steel. It was originally incorporated as Manganese Ore (India) Limited in 1962 and its name was changed to MOIL Limited during 2010-11.
The company operates 11 manganese ore mines in India. It has 7 mines located in the Nagpur and Bhandara districts of Maharashtra and four in the Balaghat district of Madhya Pradesh.
At present the Government of India owns 53.35% shares in the company, Government of Maharashtra (5.96%), Government of Madhya Pradesh (5.38%) and Public (35.31%).
Headquarters: Nagpur, Maharashtra
7. India’s first underwater metro to become operation by December 2023
Tags: National Economy/Finance State News
According to the Kolkata Metro Rail Corporation, India's first underwater metro service, the East-West Metro Corridor project is expected to be completed by December 2023.
The metro line, which will connect Salt Lake to Howrah via Kolkata with a stretch below the Hooghly River, is currently operational between Sector V and Sealdah stations.
Of the total 16.55 km length of the project, 9.30 km length between Sector V and Sealdah is operational. The remaining 7.25 km length is likely to be operational by December 2023.
The twin tunnel down the Hooghly River will be around half a kilometer which will be covered in less than a minute by the metro train.
The Kolkata Metro Rail Corporation is a Government of India company which is implementing the East- West Metro Corridor project.
The first metro rail system in India was also started in Kolkata from Dum Dum to Tollygunge in 1984.
Metro Rail system
- The first metro rail system in the world was started in London on 10 January 1863.
- First metro in India; Kolkata Metro which started its operation 24 October 1984 between Dum Dam to Tollygunge. It was started with the help of the Soviet Union.
- Largest metro rail in operation in India: Delhi Metro (390.14 km: Source DMRC as on 7 March 2022). It started operation on 24 December 2002.
- Smallest Metro: Ahmedabad metro ,6 km
- The metro rail systems in operation in India are in the cities of Ahmedabad, Bengaluru, Chennai, Delhi, Gurugram, Hyderabad, Jaipur, Kanpur, Kolkata, Kochi Lucknow, Mumbai, Nagpur, Noida, and Pune. (total 15 cities )
8. Asian Development Bank provides $100 million loans to Shriram Finance limited
Tags: Economy/Finance
India’s largest Non-Banking Finance Company (NBFC) Shriram Finance Ltd has secured a $100 million loan from the Manila based Asian Development Bank on 30 December 2022. The loan amount will be used by the Shriram Finance to provide loans to customers to buy new or used BS VI compliant vehicles and electric vehicles", besides providing financial support to women entrepreneurs and under-developed states.
Shriram Finance Limited is the largest retail NBFC in India. It was formed after the merger of mainly Shriram City Union Finance and Shriram Transport Finance.
The headquarters of the company is in Chennai.
Managing Director and Chief Executive Officer: Y S Chakravarti
Asian Development Bank was set up in 1966 as a regional development bank for Asia and Asia-Pacific region. The total number of member countries of ADB is 68.
Its headquarters is at Mandaluyong City, Manila, Philippines
President of ADB: Masatsugu Asakawa
9. N Chandrasekaran appointed as the head of the Maharashtra government advisory council
Tags: Economy/Finance Person in news State News
The Maharashtra government has appointed Tata Sons Chairman N Chandrasekaran as the head of the new Economic Advisory Council of Maharashtra. This was announced by the deputy chief minister Devendra Fadnavis in the state Legislative Council in Nagpur on 29 December 2022.
He said that the government has set up the Economic Advisory Council, to make Maharashtra a trillion dollar economy. Prime Minister Narendra Modi has set a target of India becoming a $5 trillion economy by 2024-25.
The Economic Advisory Council will function as a private research organization with focus on issues related to agriculture, banking, engineering and education.
The State Gross Domestic Product (SGDP) of Maharashtra in 2021-22 was $430.62 billion. It is the biggest state economy in India and its contribution to the Indian Economy is 15%. (Source India Brand Equity Foundation, Government of India)
Chief Minister of Maharashtra: Eknath Shinde
10. FDI investment still more in service sector than manufacturing sector: Ind-Ra report
Tags: Reports Economy/Finance
According to a research report published on 28 December 2022 by the India Ratings & Research (Ind-Ra) the Foreign Direct Investment (FDI) in India was still limited to few sectors and maximum investment was still in the service sectors.
According to Ind-Ra despite the government’s effort to attract more investments in the manufacturing sector through “Make in India" campaign, the FDI inflow is still tilted in favour of the services sector,"
Ind-Ra believes this could be because doing business in the services sector is less complicated than doing business in the manufacturing sector in India. This could also be the reason for the majority of the FDI coming in the manufacturing sector is not a Greenfield investment.
Main points of the report
The share of the services sector and computer software & hardware in the FDI between April 2014 and March 2022 were as high as 41.3% and 19.6%, respectively, while manufacturing accounted for just 25.4%.
Between April 2000 and March 2014, the share of the services sector and computer software & hardware in such inflows were 37% and 5.9%, respectively, and that of manufacturing was as much as 35.4%.
Of the total FDI inflow of $146.7 billion during October 2019 and March 2022, just four states attracted 83.0% of the FDI with Maharashtra accounting for 27.5%, Karnataka 23.9%, Gujarat 19.1% and Delhi 12.4%.
According to the report three distinct FDI corridors have emerged in India. They are the Delhi National Capital Region (NCR) in the North, Maharashtra-Gujarat in the west and Karnataka-Tamil Nadu-Andhra Pradesh-Telangana in the South.
Among the emerging market economies, India has done reasonably well in attracting FDIs. Only China has been consistently ahead of India.
According to the World investment Report 2022 of United Nations Conference on Trade and Development (UNCTAD), India is ranked 7 FDI destinations globally.
India Rating and Research (Ind-Ra)
India Ratings and Research (Ind-Ra) is a subsidiary of the global rating company Fitch. It is a credit rating agency headquartered in Mumbai. Ind-Ra is recognised by the Securities and Exchange Board of India and Reserve Bank of India.
Chairman, Managing Director and Chief Executive Officer: Rohit Karan Sawhney
