Which Country is Known as The White Rus?

Countries around the world are often known by unique names or titles that reflect their culture, history or geography. These names can symbolize important characteristics, such as country’s natural beauty, its historical significance or even its economic strength. In this article, we will know about the country which is known as “The White Rus.”

The White Rus

Belarus is the country commonly known as the “White Rus.” This name has a special meaning connected to the country’s history and its people. In this article, we will explore the origin of this name, its historical use, translations in different languages, and why it is also called White Ruthenia.

Why is Belarus Known as the White Rus?

Belarus is called “White Rus” because of its historical and cultural roots. The name comes from “Belarussians,” meaning “White Russians.” It may refer to the white clothing worn by the Slavic people or the region’s freedom from Mongol or Tatar rule. The name highlights Belarus’ connection to the old Rus’ lands that were never conquered.

Origin of the Name Belarus

The name “Belarus” comes from the term “Belarussians,” which means “White Russians.” It is believed that the name may have originated from the white clothing worn by the Slavic people living in the area. Another theory is that it comes from the old Rus’ lands, which were never conquered by the Mongols or Tatars. The word “White” could refer to the area’s freedom from foreign rule.

Historical Background of Belarus

In the past, Belarus was known as Belorussia or White Russia. During the Russian Empire, the name “White Russia” was used to highlight the vastness of the empire and the region’s importance. In 1919, Belarus, was occupied by Russia and became the Byelorussian Soviet Socialist Republic (BSSR) under Soviet rule. When Belarus gained independence in 1991, it changes its name to “Belarus,” which is still used today.

Other Names for Belarus

The term “Rus” is often confused with other names like Russia and Ruthenia. Because of this, Belarus is sometimes also called “White Ruthenia.” This confusion arises because of the historical links between Belarus and the broader region known as Rus’ in medieval times.

World Bank Approves $188.28 Million Loan for Maharashtra’s Backward Districts

The World Bank has approved a $188.28 million loan to Maharashtra aimed at boosting economic growth in the state’s underdeveloped districts. This loan, provided by the International Bank for Reconstruction and Development (IBRD), comes with a 15-year maturity period, including a five-year grace period. The project focuses on enhancing district-level governance, improving e-governance services, and fostering private sector involvement to accelerate economic development and job creation.

Key Objectives and Strategies

Boosting District-Level Planning: The initiative will empower districts with essential resources, including data, funding, and expertise, enabling them to optimize public spending and promote inclusive growth.

Creating Maha Databank: A significant aspect of the project is the creation of the Maha Databank, a data governance framework aimed at addressing development challenges such as gender disparities and enabling evidence-based planning.

Improving E-Governance and Private Sector Engagement

Upgrading Digital Platforms: The project will enhance Maharashtra’s key online service portals, such as MAITRI 2.0 for business services and RTS portal for government services, ensuring timely access for the private sector.

Incentive Framework for Districts: Districts that meet annual performance targets will receive fiscal incentives, promoting competition and efficiency in service delivery and governance.

Overcoming Governance Challenges

The initiative addresses significant barriers, including fragmented governance and the lack of credible data, which have hindered growth in backward districts. By improving institutional capability and coordination, the program aims to streamline governance and enhance the interaction between the public and private sectors, ensuring broad-based growth across Maharashtra.

Summary of the news

Why in News Key Points
World Bank Loan to Maharashtra – $188.28 million loan approved by World Bank for Maharashtra’s economic growth, targeting backward districts.
– Provided by International Bank for Reconstruction and Development (IBRD).
– Maturity period: 15 years, with 5 years grace period.
– Focus on improving district-level planning and governance.
– Creation of Maha Databank for addressing development challenges like gender disparity.
– Incentives for districts achieving performance targets.
Key Features of the Loan Program – Maha Databank: Data governance framework for better coordination and analysis.
– Enhancement of Maharashtra’s online service portals (MAITRI 2.0, RTS).
– Strengthening e-governance services, especially in tourism sector.
– Improving service delivery and public-private sector collaboration.
Key People – Auguste Tano Kouamé: World Bank’s Country Director for India.
– Neha Gupta and Thomas Danielewitz: Task Team Leaders for the project.
Maharashtra – Capital: Mumbai.
– CM: Shri Devendra Fadnavis

Pralhad Joshi Launches ‘Anna Chakra’ and SCAN Portal

The Union Minister of Consumer Affairs, Food and Public Distribution and New & Renewable Energy, Shri Pralhad Joshi, launched ‘Anna Chakra’ and SCAN (Subsidy Claim Application for NFSA) portal, marking a significant step toward modernizing India’s Public Distribution System (PDS) and subsidy claim mechanisms.

Anna Chakra: PDS Supply Chain Optimization Tool

Purpose

  • To enhance efficiency in the logistics network of the PDS across India, ensuring the seamless movement of food grains.

Development

  • Created in collaboration with the World Food Programme (WFP) and Foundation for Innovation and Technology Transfer (FITT), IIT-Delhi.
  • Utilizes advanced algorithms to identify optimal routes for food grain movement.

Features and Benefits

  • Supports the world’s largest food security program benefiting 81 crore people.

Cost Savings

  • Estimated savings of ₹250 crore annually.
  • Reduction of QKM (Quantity x Distance) by 58 crore quintal-kilometers.

Environmental Impact

  • Lower carbon footprint due to reduced transportation-related emissions.
  • Savings in fuel consumption and logistics costs.

Scope

  • Covers 30 states, 4.37 lakh Fair Price Shops (FPSs), and ~6,700 warehouses.

Integration

  • Linked with FOIS (Freight Operations Information System) through the Unified Logistics Interface Platform (ULIP).
  • Integrated with the PM Gati Shakti platform, including geo-locations of FPSs and warehouses.

Significance

  • Supports stakeholders from farmers to FPS operators, making the supply chain more robust.
  • Ensures the timely delivery of food grains across the country.

SCAN (Subsidy Claim Application for NFSA) Portal

Purpose

  • To streamline the subsidy claim process under the National Food Security Act (NFSA).

Features

  • Single-window submission of subsidy claims by states.
  • End-to-end workflow automation for claim scrutiny, approval, and settlement.
  • Uses rule-based processing for efficient subsidy release.

Benefits

  • Speeds up the settlement process for food subsidies.
  • Enhances transparency and accountability in subsidy disbursement.
Summary/Static Details
Why in the news? Shri Pralhad Joshi launches ‘Anna Chakra’, the Public Distribution System Supply chain optimisation tool and SCAN (Subsidy Claim Application for NFSA) portal
‘Anna Chakra’ SCAN (Subsidy Claim Application for NFSA) portal
Purpose Optimize PDS supply chain logistics Streamline subsidy claims under NFSA.
Developed By WFP and FITT, IIT-Delhi. Department of Food and Public Distribution (DFPD).
Key Features – Route optimization using advanced algorithms.

– Single-window subsidy claim submission.

– Integration with FOIS and PM Gati Shakti platform. – End-to-end workflow automation for claims processing.
Scope Covers 30 states, 4.37 lakh FPSs, and ~6,700 warehouses. Facilitates state governments’ subsidy claims.
Benefits – ₹250 crore annual savings. – Faster subsidy settlement. – Reduced carbon footprint and logistics costs. – Enhances transparency in subsidy disbursement.
Environmental Impact Reduced emissions due to optimized transportation routes.
Integration Linked with FOIS and PM Gati Shakti platform. Fully automated with rule-based subsidy release.
Significance Supports 81 crore beneficiaries in the world’s largest food security program. Ensures timely and transparent subsidy distribution to states.

OECD Raises India’s FY25 Growth Forecast to 6.8%

The Organisation for Economic Co-operation and Development (OECD) has upgraded India’s GDP growth forecast for FY25 to 6.8%, up from 6.7%, citing robust public infrastructure spending, strong private consumption, and recovery in agricultural output. This growth momentum is expected to be sustained through FY25 and FY26, with investment and rural income growth being central to the economy’s expansion. Despite global economic uncertainties and geopolitical risks, India’s economic resilience points to a promising future.

Key Drivers of Growth

OECD highlights strong public infrastructure investment, vigorous credit growth, and a recovery in farm output as primary contributors to the growth forecast. Agricultural performance, buoyed by above-normal monsoon rains, is expected to ease food prices and inflation, further supporting domestic demand.

Investment and Private Consumption

The acceleration in public spending and vigorous private investment is expected to support growth, maintaining near 7% GDP expansion for the next two years. With robust credit growth aiding private sector investments, India’s economic recovery looks strong, despite a slightly weaker export outlook due to global tensions.

Labour Supply and Structural Shifts

A challenge lies in the labour supply, particularly with sustaining rapid GDP growth. The OECD stresses the need for structural shifts from agricultural employment, improvement in education, and greater focus on youth and female labour force participation to ensure sustained growth.

Global Risks and Inflation Outlook

OECD points to external risks, including a weaker global economic environment and higher commodity import prices, which could slow growth. However, India’s inflation is expected to ease, allowing for monetary policy easing in the coming period. The prudent fiscal policies have helped maintain a steady decline in government deficits and debt despite higher public investment.

Summary of the news

Why in News Key Points
OECD raised India’s GDP growth forecast for FY25 to 6.8% – Up from 6.7% to 6.8% for FY25.
– Growth driven by public infrastructure spending, private consumption, and agricultural recovery.
– Public investment and rural income are key contributors.
Strong private consumption and investment driving GDP growth – Private consumption is growing robustly.
– Public infrastructure spending is accelerating.
– Investment in public and private sectors fueling growth.
OECD highlights the need for structural shifts in labor supply – Focus on improving educational attainment and shifting from agricultural employment.
– Increased youth and female labor force participation required for sustained growth.
India’s export growth outlook affected by global tensions – Slight increase in export growth projected.
– Ongoing global tensions may weaken export prospects.
Inflation expected to ease, creating room for monetary easing – Inflation to decrease, which could allow for easier monetary policy.
Macroeconomic risks from global environment and commodity prices – Risks include a weaker global economy and higher commodity import prices.
– Geopolitical tensions and protectionism may also harm growth.
Fiscal policies remain prudent despite higher public investment – Government deficit and debt are on a persistent downtrend.
– Fiscal policies remain aligned with long-term economic stability.

 

Which State/ Union Territory is Known as the Paris of the East?

Indian States and Union Territories are often identified by unique names reflecting their culture, history or natural beauty. These names highlight their specialties, like stunning landscapes, vibrant traditions or historical significance, making each place special and offering a glimpse into India’s diverse heritage. In this article, we will know about the Union Territory which is known as the “Paris of the East.”

Indian States and Union Territories

India has 28 states and 8 Union Territories. States have their own governments, while Union Territories are directly governed by the Central Government. Each religion is unique, with different languages, traditions and natural beauty.

Paris of the East

Puducherry, a Union Territory in India, is often called the “Paris of the East” because of its rich French influence. This unique place is a blend of French culture, history, and Indian traditions, making it one of the most interesting and beautiful destinations in India.

Why is Puducherry Known as the Paris of the East?

The name “Paris of the East” comes from Puducherry’s long history as a French Colony. It was under French rule for 138 years, and many parts of the town show French architecture, streets, and culture. This combination of French and Indian influences gives Puducherry a special charm.

History of Puducherry

Puducherry was a French colony for many years before becoming a part of India. On November 01, 1954, it officially became a union territory of India. In 1963, it was fully integrated into the Indian nation. Today, it consists of the former French colonies of Puducherry, Karaikal, Mahe and Yanam.

Other Nicknames for Puducherry

Apart from the “Paris of the East,” Puducherry is also known by other names:

  • “Quintessence of French Culture” –  This highlights the deep French influence in its lifestyle and culture.
  • “India’s Little France” – Referring to how Puducherry still feels like a small French town in India.
  • “The French Riviera of the East” – This name draws attention to Puducherry’s beautiful coastal views, similar to the French Riviera.

MHA Grants FCRA Licenses to CNI and USIN Foundation

The Union Ministry of Home Affairs (MHA) has granted FCRA licenses to the USIN Foundation, a think tank, and The Synodical Board of Social Services of the Church of North India (CNI), reinstating CNI’s license that was revoked last year. This approval allows CNI to resume receiving foreign funds for social and religious activities. The decision comes as the MHA continues its scrutiny of NGOs, with recent revocations signaling increasing regulatory oversight.

Recent FCRA License Revocations

In a contrasting move, the MHA revoked the FCRA licenses of five prominent NGOs on allegations of misusing foreign funds, including CNI-SBSS, Voluntary Health Association of India (VHAI), Indo-Global Social Service Society (IGSSS), Church Auxiliary for Social Action (CASA), and Evangelical Fellowship of India (EFOI). CNI-SBSS, established in 1970, was the arm of the Church of North India for rural development, but faced allegations of financial mismanagement. Similarly, VHAI, which had long been active in disaster relief, and CASA, with foreign grants from countries like Germany and the US, have been impacted by the MHA’s decision.

Key Allegations and Past Actions

The MHA’s focus on NGOs with foreign funding has intensified in recent years. Over 100 NGOs, including notable names like the Centre for Policy Research (CPR), Rajiv Gandhi Foundation, and Oxfam India, have lost their FCRA licenses due to misuse of foreign contributions. These actions reflect ongoing concerns about compliance with FCRA regulations and the proper use of foreign funds for charitable and developmental activities in India.

MHA’s Expiring FCRA Licenses and Renewal Process

Alongside the revocations, the MHA has extended the validity of FCRA licenses expiring between April 1 and June 30, 2024, until June 30, 2024, for NGOs to apply for renewal. This move aligns with the broader effort to streamline foreign fund regulation, with a focus on compliance and transparency in foreign contributions.

Summary of the news

Why in News Key Points
FCRA Licence Grant to USIN Foundation and CNI – MHA grants FCRA licenses to USIN Foundation and CNI Synodical Board of Social Services.
– CNI’s license, revoked last year, reinstated.
– USIN Foundation granted FCRA license earlier this month.
– FCRA regulates foreign funds for NGOs.
Revocation of FCRA Licenses – MHA revoked FCRA licenses of five NGOs: EFOI, CASA, VHAI, IGSSS, CNI-SBSS.
– Reason: Violations of FCRA rules and foreign fund misuse.
– CNI-SBSS linked to Church of North India (CNI) for rural development.
Notable NGOs Affected – VHAI: Worked with WHO and ICMR, received foreign funds.
– CASA: Received donations from Germany, USA, Sweden.
– IGSSS: Focused on climate resilience, received funds from UK, Germany, Singapore.
Other FCRA Actions – Over 100 NGOs, including CPR, Rajiv Gandhi Foundation, Oxfam India, lost FCRA licenses in recent years.
– Oxfam India’s license revoked in Dec 2021.
MHA’s FCRA License Renewal Process – MHA extended FCRA license validity for NGOs expiring between April 1 and June 30, 2024, till June 30, 2024.
– NGOs to apply for renewal before expiry.

Scottish Sikh Artist Wins 2024 Turner Prize

Glasgow-born Scottish Sikh artist Jasleen Kaur has been awarded the Turner Prize 2024, one of the world’s most prestigious accolades in contemporary art. Known for her evocative exploration of personal, political, and spiritual themes, Kaur received the prize for her solo exhibition Alter Altar, which combines sculpture, sound, and music to reflect on community, cultural inheritance, and anti-colonial struggles. Her work is celebrated for its innovative storytelling, connecting everyday objects to broader narratives of resilience, memory, and identity.

Key Highlights

Winner: Jasleen Kaur, Glasgow-born artist of Indian Sikh heritage.

Prize: £25,000 (₹26.84 lakh approximately).

Awarded For,

  • Her exhibition Alter Altar at Tate Britain, which features sculptures animated by sound and music.
  • The weaving of personal, political, and spiritual themes in her work.
  • Use of objects like Irn-Bru (Scottish drink), family photos, vintage Ford Escort, and Axminster carpet to convey stories of cultural and migrant identity.

Artistic Themes

  • Focus on Sikh philosophy of Miri Piri (balance between political and spiritual).
  • Anti-colonialist and anti-imperialist struggles linked to personal history.
  • Migrant experiences and family memory.

Innovative Elements in Exhibition

  • A vintage Ford Escort adorned with a crocheted cotton doily, representing migration and labor histories.
  • Improvised vocal soundscape combining pop music and the artist’s voice.
  • Inviting audience participation and reflecting Sikh community traditions.

Impact

  • Praised for addressing family memory, community struggles, and cultural resilience.
  • Received widespread appreciation from the Sikh community and her upbringing circles in Glasgow.

Background

  • Studied jewellery making and applied art, leading to her interest in storytelling through objects.
  • Turner Prize jury lauded her ability to evoke solidarity and joy through playful combinations of material and sound.

Turner Prize Significance

  • Established in 1984, named after painter JMW Turner.
  • Promotes debate around contemporary British art.
  • Past winners include British Indian sculptor Anish Kapoor.
Summary/Static Details
Why in the news? Glasgow-born Scottish Sikh artist Jasleen Kaur has been awarded the Turner Prize 2024
Award Turner Prize 2024
Prize Money £25,000 (₹26.84 lakh)
Winning Exhibition Alter Altar
Key Themes Personal, political, spiritual, anti-colonialism, migrant identity, cultural inheritance
Featured Objects Irn-Bru, family photos, vintage Ford Escort, Axminster carpet, harmonium, kinetic hand bells
Major Recognition Evocative storytelling, reflection on Sikh philosophy (Miri Piri)
Venue Tate Britain, London
Turner Prize Significance Celebrates innovation in contemporary British art, established in 1984
Other Shortlisted Artists Pio Abad, Claudette Johnson, Delaine Le Bas

IndiGo Ranks Among Worst Airlines Globally in AirHelp 2024 Report

India’s IndiGo Airlines has landed in the bottom tier of the global airline rankings, securing the 103rd position out of 109 in the 2024 AirHelp Score report. This ranking places the low-cost carrier as one of the worst performers, which has raised questions about the credibility of the survey. While Air India fares slightly better at 61st, IndiGo refutes the findings, arguing that the methodology lacks transparency, especially concerning the sample size from India.

The report, which considers factors such as customer claims, on-time performance, and passenger feedback on food quality, seating comfort, and crew service, named Tunisair as the worst airline globally. Despite the negative ranking, IndiGo insists that it maintains a strong reputation in punctuality and customer satisfaction, as per official reports from India’s aviation regulator, the DGCA.

IndiGo’s Discontent with AirHelp’s Methodology

IndiGo has raised doubts over the credibility of the AirHelp report, stating that it fails to account for the local context, particularly the sample size from India. The airline argues that its punctuality and customer complaint ratio remain exceptional, as evidenced by its high rankings in official data from India’s Directorate General of Civil Aviation (DGCA). IndiGo also emphasized its status as India’s most preferred airline, boasting a 61.3% market share in 2024.

Comparison with Other Airlines

In comparison, Air India’s ranking of 61st is more favorable, though still distant from the global top performers. Leading the rankings are Brussels Airlines, Qatar Airways, and United Airlines, all of which have consistently been top contenders in the global airline industry.

A Snapshot of the Worst Performers

The 2024 report highlights a few other airlines in the lower rankings, including Turkish carrier Pegasus Airlines, Ryanair, and Aer Lingus. Despite these rankings, the AirHelp report aims to provide a comprehensive view of airline performance globally, urging carriers to improve their services based on passenger feedback.

AirHelp’s Focus on Customer Feedback

The AirHelp Score report, which gathers data from over 54 countries, evaluates airlines based on a combination of punctuality, customer claims, and passenger satisfaction. The findings are meant to encourage airlines to listen to their customers and enhance service quality, especially during the busy holiday season when air travel peaks.

Summary of the news

Why in News Key Points
IndiGo’s Ranking in AirHelp 2024 Report – IndiGo ranked 103rd out of 109 airlines globally in the AirHelp 2024 report.
– Disputed the report’s credibility, citing concerns over methodology and sample size from India.
– IndiGo maintains high rankings in India’s DGCA data for punctuality and low customer complaints.
– Holds a 61.3% market share in India, with over 7.25 crore passengers in 2024.
Air India’s Ranking – Air India ranked 61st in the 2024 AirHelp report.
Top Airlines in the AirHelp 2024 Report – Best airlines: Brussels Airlines (1st), Qatar Airways (2nd), United Airlines (3rd).
Worst Airlines in the AirHelp 2024 Report – Worst airline: Tunisair (109th).
– Other bottom performers include Ryanair (101st), Aer Lingus (102nd), and IndiGo (103rd).
AirHelp Report Factors – Rankings based on customer claims, on-time performance, food quality, seating comfort, and crew service.
– Data from over 54 countries.
Air India and AirAsia’s Ranking – Air India: 61st
– AirAsia: 94th
IndiGo’s Fleet and Operations – IndiGo operates a fleet of over 380 aircraft.
– Conducts around 2,100 daily flights across 85 domestic and 30 international destinations.

Anurag Mehrotra Resigns from Tata Motors, Likely to Join JSW MG Motor as CEO

Anurag Mehrotra, an experienced automotive industry professional with over two decades of expertise, has resigned from his role as Vice President of International Business and Strategy at Tata Motors’ Commercial Vehicles Business. After a remarkable stint at Tata Motors since October 2021, he is expected to join JSW MG Motor as CEO in February, leading the company’s ambitious plans to triple its volumes in the next three to five years. Mehrotra’s career includes notable achievements in both domestic and international markets, with significant leadership roles, including his tenure as Managing Director (MD) of Ford India.

Key Highlights of Anurag Mehrotra’s Career

Role at Tata Motors

  • Joined Tata Motors as Vice President of International Business and Strategy on October 1, 2021.
  • Played a pivotal role in expanding Tata Motors’ commercial vehicle footprint in Egypt and Thailand.
  • Focused on de-risking the cyclicality of the domestic commercial vehicle market by exploring international opportunities.
  • Instrumental in launching products like Tata Prima and Tata Ultra.

Leadership at Ford India

  • Served as Managing Director of Ford India during a challenging period, achieving significant milestones.
  • Successfully transitioned the company from losses to profitability.
  • Introduced the Emerging Market Operating Model (EMOM), cutting structural costs by 37%.
  • Increased revenue from Rs 19,000 crore in FY17 to Rs 24,000 crore in FY19.

Achieved a financial turnaround

  • Loss of Rs 521 crore in FY17.
  • Profit of Rs 500 crore in FY18.
  • Emphasized exports to bolster revenue streams.
  • Held leadership roles in marketing and sales during his decade-long tenure.
  • Key stakeholder in the Ford-Mahindra JV, which was later called off in December 2020 due to the COVID-19 pandemic and changing global conditions.
  • Departure in 2021 followed Ford’s decision to cease domestic production in India as part of a global restructuring.

Expected Role at JSW MG Motor

  • Set to take over as CEO in February 2024.
  • Will leverage his expertise to drive JSW MG Motor’s growth strategy, targeting a threefold increase in volumes in the next 3-5 years.
  • The company is undergoing a top management revamp, with new executives expected in sales, marketing, HR, and administration.
Summary/Static Details
Why in the news? Anurag Mehrotra Resigns from Tata Motors, Likely to Join JSW MG Motor as CEO
Current Transition Resigned as VP, Tata Motors; to join JSW MG Motor as CEO in February 2024.
Tata Motors Role Expanded presence in Egypt and Thailand; launched Tata Prima and Ultra.
Ford India Achievements – Transitioned from losses to profitability.

– Implemented EMOM, reducing costs by 37%.

– Revenue grew from Rs 19,000 crore (FY17) to Rs 24,000 crore (FY19).

– Achieved Rs 500 crore profit in FY18.

JV Experience Key stakeholder in the proposed Ford-Mahindra JV, later called off in December 2020.
JSW MG Motor Role Will lead growth strategy to triple volumes in 3-5 years; overseeing management restructuring.
Industry Expertise 20+ years in automotive, with experience in domestic and international markets.

RBI Monetary Policy Meeting Dec 2024: Key Highlights and Updates

The Reserve Bank of India (RBI) conducted its latest bi-monthly Monetary Policy Committee (MPC) meeting in December 2024. Governor Shaktikanta Das announced several crucial measures and projections to address current economic challenges while maintaining stability. Here’s a detailed breakdown:

CRR Cut by 50 Basis Points to 4%

To tackle liquidity concerns, the Cash Reserve Ratio (CRR) was reduced by 50 basis points to 4%. This move aligns with the RBI’s neutral policy stance, aimed at ensuring economic stability without disruptive interventions.

Repo Rate Unchanged at 6.5%

The MPC decided by a 4-2 majority to maintain the repo rate at 6.5%. The Standing Deposit Facility (SDF) rate and the Marginal Standing Facility (MSF) rate were also retained at 6.25% and 6.75%, respectively. This cautious approach reflects the central bank’s focus on balancing inflation and growth.

GDP Growth Forecast Lowered for FY25

The RBI revised the GDP growth forecast for FY25 to 6.6%, down from the earlier projection of 7.2%. Governor Das attributed the adjustment to weaker-than-expected Q2 growth and specific challenges in the manufacturing sector. Despite this, high-frequency indicators suggest potential stabilization ahead.

Inflation Projections for FY25

The RBI forecasted an inflation rate of 4.8% for FY25. Food inflation is expected to persist during Q3 but may ease from Q4 onward. Quarterly projections are as follows:

  • Q3 FY25: 5.7%
  • Q4 FY25: 4.5%
  • Q1 FY26: 4.6%
  • Q2 FY26: 4.0%

Support for the Agricultural Sector

In a significant move, the RBI increased the collateral limit for agricultural loans from Rs 1.6 lakh crore per borrower to Rs 2 lakh crore. This aims to enhance financial support for farmers and boost credit availability in the sector.

Introduction of SORR Benchmark

The RBI proposed a new benchmark, the Secured Overnight Rupee Rate (SORR), to strengthen market-based pricing mechanisms and enhance transparency in monetary operations.

New Communication Initiative: RBI Podcasts

The RBI plans to launch podcasts as a communication tool to improve public engagement and transparency. This initiative reflects the central bank’s commitment to leveraging technology for better outreach.

Measures to Attract Foreign Capital

To boost foreign investments, the RBI raised interest rate ceilings on FCNR-B deposits and increased FCNR deposit rates. These measures aim to attract higher foreign portfolio inflows, which have totaled $9.3 billion so far in FY25.

Addressing Unclaimed Deposits

The RBI directed banks to segregate unclaimed deposit accounts using Direct Benefit Transfers (DBT). This step aims to ensure transparency and efficiency in beneficiary identification while facilitating the seamless flow of DBT funds.

Challenges in Domestic Consumption

Private consumption growth slowed to 6% in the September quarter from 7.5% earlier, reflecting a decline in urban demand. Fixed investment growth also dipped to 5.4%. However, government consumption rebounded by 4.4%, driven by election-related activities.

Key Members of the MPC

The Monetary Policy Committee comprises six members:

  1. Shaktikanta Das (Governor, RBI)
  2. Michael Debabrata Patra (Deputy Governor, RBI)
  3. Rajiv Ranjan (Executive Director, RBI)
  4. Ram Singh (Director, Delhi School of Economics)
  5. Saugata Bhattacharya (Economist)
  6. Nagesh Kumar (Director, ISID)

These measures and insights reflect the RBI’s balanced approach to addressing economic challenges while fostering growth and stability. The central bank continues to monitor developments closely, ensuring proactive and effective policymaking.

Summary of the news

Why in News The Reserve Bank of India (RBI) conducted its bi-monthly Monetary Policy Committee (MPC) meeting in December 2024.
GDP Growth Forecast (FY25) 6.6% (down from 7.2%)
Cash Reserve Ratio (CRR) 4% (reduced by 50 bps)
Repo Rate 6.5% (unchanged)
Standing Deposit Facility (SDF) Rate 6.25%
Marginal Standing Facility (MSF) Rate 6.75%
Inflation Projection (FY25) 4.8%
Agricultural Loan Collateral Limit Rs 2 lakh crore (up from Rs 1.6 lakh crore)