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The current affairs related to the country’s finances need to be stated to understand the financial condition of the country. The GDP of the country is to be discussed in the later section, which is indeed an indicator of the economic growth and development of the country. A lot of financial decisions have been made in recent times by the government of India to combat the crumbling economy of the country post-Covid. The financial institutions with RBI on the top, have adopted certain strategies to save the country’s economy from going haywire.
Overview of the major financial institutions of India
The major financial institution of India such as the RBI has introduced a liquidity boost and reduced the reverse repo by 25 points which make Rs 50,000 crore TLTRO 2.0 Targeted Long-Term Repo Operations 2.0 for NBFCs. The fraudulent activities associated with banking have been increasing rapidly; therefore, RBI has adopted certain strategies to make online payment security. It has asked the merchants and the payment gateways to remove all the personal and sensitive data of the customers. It has made it mandatory for merchants to introduce encrypted tokens for transactions. It needs to be considered that the financial institution has a repo rate of 4% and a bank rate of 4.25%. The reverse repo rate is 3.35%, and the marginal standing facility rate is 4.25%.
According to RBI, financial institutions such as ICICI, SBI, and HDFC will be known as Domestic Systemically Important Banks. One of the major financial institutions such as SBI has launched the RuPay SoftPOst to transform the NFC driven smartphones into a merchant point of Sale, for the retailers. It will be helpful for the Indian merchants. The central financial institution of India is RBI, and it has imposed certain restrictions and introduced security control guidelines to cause the digital payment channels to improve.
Current Affairs related to India’s Finance
India has exhibited itself as the fastest growing economy, and it can be said that it may top the world in terms of economic power in the next 15 years. Backed by strong partnership deeds and the advantages of democracy, the economy of India has the potential to reach remarkable heights. The estimated price for the country’s nominal GDP for the financial year 2021-2022 is Rs 232.15 trillion. It is to be considered that right now India has 83 unicorns thereby making it the third-largest unicorn base with a valuation of 277.77 billion.
The foreign exchange reserves of India reached 634.287 billion US dollars in January 2022. The ecosystem of YouTube has made a contribution of RS 6, 800 Crores to the country’s GDP. According to the National Statistical Office, the GDP of the country has contracted by 7.3%, whereas, earlier the GDP contracted by 7.3% due to the impending effects of the pandemic situation and the consecutive lockdowns in the country.
According to the annual report issued by the International Monetary Fund (IMF), the economy of India is slowly recovering from its dilapidated state; however, it has warned the authorities against the pressures of Inflation.
The Union Budget of 2022 has introduced the income tax bracket. The income tax bracket can be divided into individuals, senior citizens, and super senior citizens. There is no tax applicable for income up to 2, 50,000. In the case of Rs 250000 to Rs 500000, the income tax rate is 20%, and for income above 100000, the rate is 30%. The income tax for senior citizens is 5% for income between Rs 300000 and 500000. For income between 500000 to 1000000, the interest is 20%, and for income above 1000000 is 30%.
Conclusion
India has been trying its best to recover from the major setbacks that it received during the pandemic situation and due to the consecutive phases of lockdown imposed by the government. The above sections show that some areas of the economic sector have made remarkable improvements in recent times, and it is expected that the country’s GDP will increase in the future years. It is estimated that India will become one of the three major economic powers on its success at generating employment opportunities in the country.
