Growth Performance Q3 FY25 GDP Growth: 6.2% (an increase from the 5.6% growth rate in Q2).In Comparison to Q3 FY24: A much slower rate than last year’s 9.5%.RBI Estimate: Short by 0.2 percentage points. Key Drivers of Growth Weaknesses & Challenges Growth momentum is likely to sustain on the backs of consumption and exports. Investment recovery is still a matter of concern. Global uncertainty and currency volatility may interrupt future performance.
IRDAI Permits Insurers to Use Derivatives in Equities for Hedging Purposes.
Context: In order to hedge against market volatility, the IRDAI has allowed insurers to use equity derivatives. The predominant aim of this is to hedge against the erosion of the market value of equity investments, as well as mitigating the portfolio risks primarily emerging from greater participation of insurers in equity markets. Regulatory Guidelines and Conditions Prescribed Impacts on the Insurers A Look at Strengthening Risk Management in Insurance Investments Source: BS
RBI’s Auction on Dollar Rupee Swap of $10 Billion
Context: RBI conducted a buy sell swap auction of $10 billion USD/INR with a three year tenure.Strong demand: Received bids amounting to $16.23 billion, accepted bids amounting to $10.06 billion from 161 out of 244 bids.Cutoff premium: Not fixed with ₹6.55 as compared to lower than market expectations (₹6.62).Average premium: ₹6.73. Market Reaction and Liquidity Deficit Market Participants’ Learnings In efforts to moderate rupee volatility while continuing to address liquidity constraints, RBI now resorts to swap auctions. As global trade tensions continue to escalate and U.S. tariff policies change, it is suspected that in the future RBI’s interventions will continue to be closely watched.
Tuhin Kanta Pandey Takes Charge as the SEBI Chief
Context: Tuhin Kanta Pandey appointed as the SEBI Chairman for three years, taking the reins from Madhabi Puri Buch.Previously:DIPAM Secretary (2019 2024), responsible for India’s overall disinvestment strategy. Revenue Secretary in the Ministry of Finance prior to SEBI. Holds a Master’s in Economics from Panjab University and an MBA from the University of Birmingham. The Big Challenges for SEBI’s 11th Chief According to Pandey, a more pragmatic and rule driven approach could lead to handing SEBI more stability and predictability in its regulatory approach. His experience in finance, disinvestment, and economic policy makes him very well suited to balancing investor protection with market growth.
SEBI Launches Bond Central
Context: SEBI has launched ‘Bond Central‘, a centralized database for corporate bonds. Developed by the Online Bond Platform Providers Association with Market Infrastructure Institutions. Objectives Expected Impact Source: The Hindu
India’s Warmer March Prediction
Context: India will have above-average temperatures in March 2025 across most regions following a warmer February, the weather office forecast, conditions that could threaten winter-sown crops such as wheat, chickpea and rapeseed. Warmer March Implications for Wheat Production and Policy Wheat prices soared to record heights in February as a result of tight supplies and sell exports have mixed performance over the past three months. Reservoir Storage and Water Crisis Harsh weather threats will jeopardize food security and may affect inflation and trade policies.Wheat import changes in policy will also be expected, as heat waves could potentially reduce domestic production. Source: BS
Wetlands Conservation in India
What Are Wetlands? Types of Wetlands Benefits of Wetlands Threats to Wetlands High Court Intervention in Meghalaya Much of the World is Wetlands Conservation Efforts Wetlands in India Economic & Environmental Impact Way Forward UPSC Civil Services Examination Previous Year Question (PYQ) Prelims Q. If a wetland of international importance is brought under the ‘Montreux Record’, what does it imply? (2014) (a) Changes in ecological character have occurred, are occurring or are likely to occur in the wetland as a result of human interference. (b) The country in which the wetland is located should enact a law to prohibit any human activity within five kilometers from the edge of the wetland. (c) The survival of the wetland depends on the cultural practices and traditions of certain communities living in its vicinity and therefore the cultural diversity therein should not be destroyed. (d) It is given the status of ‘World Heritage Site.’ Ans: (a) Mains Q. What is wetland? Explain the Ramsar concept of ‘wise use’ in the context of wetland conservation. Cite two examples of Ramsar sites from India. (2018)
Aditya L1 Captures Photo of first Solar Flare Kernel
Context: A solar flare “kernel” has been photographed by Aditya L1’s SUIT (Solar Ultraviolet Imaging Telescope) for the first time in photosphere and chromosphere. Flare Class is X6.3 class solar flare (among the most intense classes). Scientific Importance Implications for Solar Physics Mission Overview Source: The Hindu
China’s Retaliation After Trump Imposes New Tariffs on Chinese Imports
Context: President Donald Trump announced a 10% tariff on Chinese imports due to take effect on March 4.The linkage justified the move as being to do with drug flows from the North American neighbors into the territory of China. Key Highlights: Market Impact Political & Economic Implications High Level Diplomatic Engagements With the US-China trade war hovering near rebound, market volatility is at its highest, and the channels of diplomatic engagement are at their narrowest. If at all Beijing were to shift its hitherto constraining approach to adroitness in counteraction, it would have deep ramifications, both at a global supply chain and perception economic levels. Source: Business Standard
Trump, Zelenskyy and Vance’s Heated Argument in the Oval Office
Context: An access found heated Oval Office exchange of U.S. President Donald Trump with Ukraine President Volodymyr Zelenskyy spoke about how deeply divided conditions remain regarding U.S. support for Ukraine. Key Highlights: Geopolitical Significance The Oval Office face off is the landmark moment marking the evolution in U.S. Ukraine relations. Trump’s insistence on resource based concessions to cover support and wavering on security commitments could well change the equation in the ongoing tussle. Kyiv now has to negotiate a fine diplomatic line as it weaves its dependence on Western support while still not giving in to pressure to settle with Moscow. Source: Business Standard
