8 June 2024, The Hindu
President invites Modi to form new government
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Prelims syllabus: Current events of national and international importance
RBI keeps repo rate unchanged, raises GDP forecast to 7.2%
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GS 3: Indian Economy and issues relating to planning, mobilisation of resources, growth, development and employment
- The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) has decided to keep the repo rate unchanged at 6.5%.
- The decision, taken at the MPC’s meeting on Friday, marks the eighth time in a row that the policy rate has been put on hold to keep the focus on battling high inflation.
- The MPC has revised its GDP growth forecast upwards from the earlier 7% estimate to 7.2% for the financial year 2024-2025.
- It has also decided to remain focused on withdrawal of accommodation to ensure that inflation does not accelerate, while supporting growth.
Percentage of NOTA votes dips nationally, rises in Northeast
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GS 2: Salient features of the Representation of People’s Act (RPA)
- The percentage of votes recorded under NOTA or ‘none of the above’ dipped nationally in the 2024 Lok Sabha election from the 2019 edition. Northeastern India, however, showed a different trend.
The Centre is notional, the States the real entities
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GS 2: Functions and responsibilities of the Union and the States
- The results of the general election 2024 have thrown up a surprise. They portend greater democratisation in the country, with the regional parties doing well.
- These parties will share space on the ruling party benches as well as on the Opposition side in Parliament.
- This will help strengthen federalism, which is so crucial for a diverse nation such as India. It was badly fraying till recently.
- Centre-State relations became contentious during the campaigning for the general election.
- The idea of ‘400 paar’, ‘one nation one election’ and the Prime Minister’s emphatic threat that the corrupt (i.e., Opposition leaders) will soon be in jail were perceived as threats to the Opposition-ruled States.
Remoulding the Global Plastics Treaty
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GS 3: Environmental pollution and degradation
- As discussions still continue for an international legally binding treaty on plastic pollution, it becomes crucial to consider how it can support a fair transition for individuals who collect and recycle waste informally.
- According to the OECD Global Plastic Outlook, global production of plastic waste was 353 million tonnes in 2019 — more than double since it was in 2000, and is set to triple by 2060. Only 9% of this was recycled, 50% sent to landfills, 19% incinerated, and 22% disposed of in uncontrolled sites or dumps.
- According to the United Nations Environment Programme, of the 9% recycled, 85% was done by informal recycling workers.
RBI raising GDP view ‘augurs well’: StanChart’s Daruwala
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GS 3: Indian Economy and issues relating to planning, mobilisation of resources, growth, development and employment
- The upward revision in the full year GDP estimate to 7.2% was encouraging, said Zarin Daruwala, CEO, India and South Asia, Standard Chartered Bank in her comment on the monetary policy announcement earlier on Friday.
- “RBI’s optimism on rural consumption boosts the basis for the forecast of an above-normal monsoon, augurs well for the agricultural sector and the overall rural economy. RBI’s ongoing focus on inflation may give it room for rate cuts in the coming months,” she said.
- M. V. Rao, Chairman, Indian Banks’ Association (IBA) & MD & CEO, Central Bank of India said, “Considering the resilience exhibited by the high-frequency indicators and assuming the above normal south-west monsoon, RBI has hiked its projection for GDP for FY25 by 20 basis points to 7.2%.”
- “This hike in RBI projection reposes confidence of the central bank to the growth prospects of the domestic economy. Improvement in growth projections of RBI is quite positive for the markets,” he added.
