Daily Current Affairs Archives | Page 32 of 37

India GDP Growth Expected at 7.4% in FY26 – First Advance Estimates, GDP vs GNP Explained

Why in News?

India’s real GDP growth is projected at 7.4% for FY26, according to the government’s First Advance Estimates, despite global uncertainties like US tariff pressures

GDP-Explained

Gross Domestic Product (GDP) measures the total value of goods and services produced within a country’s borders in a given time period.

It is a key indicator of economic performance and growth.

GDP = Total value of final goods and services produced within India
Includes Net Indirect Taxes (GST – Subsidies) added to GVA
Excludes intermediate goods to avoid double counting

Types of GDP

Nominal GDP:

Measured at current market prices
Does not adjust for inflation

Real GDP:

Adjusted for inflation/deflation
Reflects actual growth in output

GDP vs GNP

Feature	GDP	GNP
Definition	Production within country	Income of nationals globally
Focus	Domestic territory	Ownership (citizens/companies)
Includes foreign companies in India	Yes	No
Includes income earned abroad	No	Yes

Examples:

A foreign company producing goods in India → counted in India’s GDP
An Indian company earning income abroad → counted in India’s GNP

https://indianexpress.com/article/business/economy/fy26-real-gdp-growth-seen-at-7-4-budget-prep-to-build-on-data-10460105/

India GDP Growth Expected at 7.4% in FY26 – First Advance Estimates, GDP vs GNP Explained Read More »

India’s CPI Inflation Rises to 1.33% in December 2025 – Key Facts, Types & CPI vs WPI

Why in News?

India’s retail inflation, based on the Consumer Price Index (CPI), increased to 1.33% in December 2025, up from 0.71% in November, as per data released by the National Statistical Office under the Ministry of Statistics and Programme Implementation.

Consumer Price Index:

Consumer Price Index (CPI) measures the average change over time in the prices paid by consumers for a representative “basket” of goods and services. It is the primary tool used to measure inflation and assess the cost of living

In India’s revised 2024 series, the basket includes 358 items classified under 12 divisions

Food and Beverages (46%): Still the largest component, though its relative weight has slightly declined.
Housing (10%): Now includes maintenance and water supply in its composite index.
Services: Coverage has expanded to 50 items, including digital services like OTT subscriptions.

Types of CPI:

CPI (Combined):

Covers both rural and urban populations

CPI – Industrial Workers (IW):

Released by Labour Bureau
Used to calculate Dearness Allowance (DA)

CPI – Agricultural Labourers (AL) / Rural Labourers (RL):

Also released by Labour Bureau

CPI vs WPI

Feature	CPI	WPI
Price Level	Retail (Consumer level)	Wholesale (Producer level)
Coverage	Goods + Services	Only Goods
Weightage	High weight to Food	High weight to Manufactured Goods
Used by	RBI for policy	Economic analysis

https://www.pib.gov.in/PressReleasePage.aspx?PRID=2213736&reg=3&lang=1

India’s CPI Inflation Rises to 1.33% in December 2025 – Key Facts, Types & CPI vs WPI Read More »

RBI Strengthens Priority Sector Lending (PSL) Norms – Key Highlights, Targets & Exam Notes

Leave a Comment / Daily Current Affairs, Indian Economy Current Affairs / PSCchronicles team

Why in News?

The Reserve Bank of India (RBI) has introduced amendments to the Priority Sector Lending (PSL) guidelines to improve credit flow monitoring and strengthen financial inclusion

Priority Sector Lending (PSL)

Priority Sector Lending (PSL) is a regulatory framework mandated by the Reserve Bank of India (RBI) requiring banks to direct a specific portion of their credit to sectors that are essential for the country’s development but often lack adequate access to formal finance.

It ensures that crucial sectors which often face credit shortages receive adequate financing.
It is a key tool for achieving financial inclusion and balanced development.

PSL Sectors:

Agriculture
Micro, Small and Medium Enterprises (MSMEs)
Export Credit
Education
Housing
Social Infrastructure
Renewable Energy
Weaker Sections (included under “Others”)

PSL Targets:

Domestic Commercial Banks:

Must allocate 40% of Adjusted Net Bank Credit (ANBC) to priority sectors.

Regional Rural Banks (RRBs) & Urban Cooperative Banks:

Higher target of 75% of ANBC due to their role in rural and inclusive banking.

https://www.newindianexpress.com/business/2026/Jan/19/rbi-tightens-psl-norms-asks-banks-to-get-external-auditor-certification

RBI Strengthens Priority Sector Lending (PSL) Norms – Key Highlights, Targets & Exam Notes Read More »

Union Cabinet Approves ₹5,000 Crore Equity Infusion into SIDBI to Boost MSME Credit Growth

Leave a Comment / Daily Current Affairs, Indian Economy Current Affairs / PSCchronicles team

Why in News?

Union Cabinet has approved a ₹5,000 crore equity infusion into SIDBI to enhance credit availability for MSMEs and ensure the institution maintains a strong financial position amid expanding lending operations.

The infusion will strengthen SIDBI’s lending capacity.
Helps maintain a healthy Capital to Risk-Weighted Assets Ratio (CRAR).

SIDBI (Small Industries Development Bank of India):

Established in 1990 under an Act of Parliament.
Acts as the principal financial institution for MSME promotion, financing, and development. Coordinates with other institutions involved in MSME financing.
Plays a vital role in industrial growth, employment generation, and exports.

Capital to Risk-Weighted Assets Ratio (CRAR):

Also known as Capital Adequacy Ratio (CAR).
Measures a bank’s capital in relation to its risk-weighted assets (RWA). Indicates the financial strength and stability of a bank.
A higher CRAR means better ability to absorb losses.
Governed by Basel Accords issued by the Basel Committee on Banking Supervision (BCBS).

https://pscchronicles.com/small-industries-development-bank-of-india-sidbi-topic-explained/

Union Cabinet Approves ₹5,000 Crore Equity Infusion into SIDBI to Boost MSME Credit Growth Read More »

Payments Regulatory Board (PRB) Holds First Meeting in Mumbai – Key Exam Notes

Leave a Comment / Daily Current Affairs, Indian Economy Current Affairs / PSCchronicles team

Why in News?

The first meeting of the Payments Regulatory Board (PRB) was held in Mumbai under the chairmanship of the RBI Governor.

Payments Regulatory Board:

Payments Regulatory Board (PRB) is a six-member statutory body within the Reserve Bank of India (RBI) established to regulate and oversee the country’s payment and settlement systems. It became operational by replacing the earlier Board for Regulation and Supervision of Payment and Settlement Systems (BPSS).

Composition: Chaired by the RBI Governor (currently Sanjay Malhotra), it includes two other RBI representatives and three nominees from the Central Government.
Focuses on regulation and supervision of digital and non-cash payment systems.
Decisions are made by a majority vote; the Chairperson holds a casting vote in case of a tie. The board must meet at least twice a year

https://www.newsonair.gov.in/rbi-governor-sanjay-malhotra-chairs-first-meeting-of-payments-regulatory-board-meeting/

Payments Regulatory Board (PRB) Holds First Meeting in Mumbai – Key Exam Notes Read More »

Centre Proposes PM-RKVY Restructuring with ₹1.75 Lakh Crore Outlay (2026–31) – Key facts

Leave a Comment / Daily Current Affairs, Indian Economy Current Affairs / PSCchronicles team

Why in News?

Union Ministry of Agriculture has proposed a major restructuring of agricultural schemes by merging three schemes into Pradhan Mantri-Rashtriya Krishi Vikas Yojana (PM-RKVY).

pradhan mantri rashtriya krishi vikas yojana (pm rkvy).

Three schemes to be merged under PM-RKVY:

Krishonnati Yojana (KY) – Focus on food security & farmers’ income
National Mission on Natural Farming (NMNF) – Promotes chemical-free farming
National Bee and Honey Mission (NBHM) – Supports apiculture & pollination

Key Features of the Restructured Scheme:

Performance-Linked Funding Framework: For the first time, the allocation of central funds will be tied to a “Reform Score,” shifting from an expenditure-driven approach to an outcome-oriented one.

30% of funds will depend on a “Reform Score”.
States will be incentivized for: Land leasing reforms, Agricultural market liberalization and Structural policy improvements.

Funding Pattern:

General States: 60:40 (Centre:State).
Northeastern and Himalayan States: 90:10.
Union Territories: 100% central funding

https://indianexpress.com/article/political-pulse/govt-to-merge-agricultural-schemes-link-funds-to-state-reforms-10468148/

Centre Proposes PM-RKVY Restructuring with ₹1.75 Lakh Crore Outlay (2026–31) – Key facts Read More »

Israel Recognizes Somaliland – First UN Member to Do So

Leave a Comment / Daily Current Affairs, International Current Affairs / PSCchronicles team

Why in News?

Israel has reportedly become the first UN member state to formally recognize Somaliland as an independent nation. This move has significant implications for regional stability in the Horn of Africa.

Somaliland:

Somaliland is a self-declared independent republic in the Horn of Africa.
It declared independence from Somalia in 1991 after the fall of military ruler .
Despite functioning as a separate entity, it has not been widely recognized internationally until now.

https://www.thehindu.com/news/international/israel-becomes-first-country-to-formally-recognise-somaliland-as-independent-state/article70441372.ece

Israel Recognizes Somaliland – First UN Member to Do So Read More »

India–Bangladesh Ganga Water Treaty Renewal Talks 2026 – Exam facts

Leave a Comment / Daily Current Affairs, International Current Affairs / PSCchronicles team

Why in News?

India and Bangladesh have initiated discussions to renew the Ganga Water Sharing Treaty, which is set to expire in December 2026.

Ganga Water Sharing Treaty:

The Ganga Water Sharing Treaty was signed on 12 December 1996 for a period of 30 years.
It regulates water sharing at the Farakka Barrage (West Bengal).
The agreement focuses on the lean season (January 1 – May 31) when water availability is low.
Ensures equitable distribution of Ganga waters between India and Bangladesh.

About Ganga River:

Course: Flows through: Uttarakhand, Uttar Pradesh, Bihar, Jharkhand, West Bengal.
Key Feature:
- At West Bengal, it divides into:
  - Bhagirathi–Hooghly (India)
  - Padma (enters Bangladesh)
Delta:
- Forms the Sundarbans Delta (largest delta in the world) along with the Brahmaputra before draining into the Bay of Bengal

https://www.firstpost.com/world/india-bangladesh-ganga-water-sharing-treaty-expiring-in-2026-will-new-delhi-renew-pact-talks-kick-off-13964670.html

India–Bangladesh Ganga Water Treaty Renewal Talks 2026 – Exam facts Read More »

ICJ Begins Hearings on Myanmar Rohingya Genocide Case – Key Facts for Exams

Leave a Comment / Daily Current Affairs, International Current Affairs / PSCchronicles team

Why in News?

International Court of Justice (ICJ) has commenced hearings to examine allegations of genocide committed by Myanmar against the Rohingya community.

Rohingyas:

The Rohingya are a Muslim minority ethnic group primarily residing in Rakhine State, Myanmar. Following severe military crackdowns and persecution, described by the UN as potential crimes against humanity and genocide, over 900,000 refugees fled to Bangladesh since 2015.

International Court of Justice:

Also known as the World Court.
Established: 1945 under the UN Charter
Began functioning: 1946
Headquarters: The Hague, Netherlands
Composition: 15 judges elected for 9-year terms
Official Languages: English and French

ICJ Begins Hearings on Myanmar Rohingya Genocide Case – Key Facts for Exams Read More »

Why Does the USA Want to Acquire Greenland? Strategic, Economic & Geopolitical Reasons Explained

Leave a Comment / Daily Current Affairs, International Current Affairs / PSCchronicles team

Why in News?

United States has expressed interest in acquiring Greenland as part of its strategic foreign policy goals.

Greenland:

Greenland is an autonomous territory of Denmark, though it was once a Danish colony. It is the world’s largest island and located in the North Atlantic Ocean, near Canada. The region gained strategic importance during the Cold War due to its proximity to Russia

Importance of Greenland to USA:

Greenland is strategically located between North America and Europe, making it geopolitically crucial.
The US already operates the Pituffik Space Base (formerly Thule Air Base) in Greenland.
The island is rich in rare earth minerals, essential for modern technology and defense.
Arctic ice melting is opening new trade routes, increasing global competition in the region.
The US aims to counter the growing influence of China and Russia in the Arctic.

https://www.bbc.com/news/articles/c74x4m71pmjo

Why Does the USA Want to Acquire Greenland? Strategic, Economic & Geopolitical Reasons Explained Read More »