Business, Economy & Banking Current Affairs - 2020
Business, Economy and Banking in Current Affairs 2019 with latest news and current affairs in Agriculture, Industry, Banking, Capital Markets, Import and Export and Government schemes in commercial sector.
On March 16, 2020, the National Mineral Development Corporation announced that the prices of iron ore is to be reduced by 1.5%. The Corporation is taking such measures predicting decline in iron ore demands due to the threats of Corona virus.
The steel prices in India reduced in 2019 due to economic slowdown. The demand of steel in the country reduced greatly and affected the supply chain greatly. The prices of iron ore was the lowest in 2019.
National Mineral Development Corporation
The National Mineral Development Corporation was founded in 1958. The Corporation operates under Ministry of Steel. It is involved in theexploration of graphite, irone ore, rock phosphate, gypsum, limestone, tungsten, bentonite, dolomite, etc.
In 2018, NMDC announced that it is to undertake mining in Australia by acquiring majority stakes in projects of the country.
Iron Ore in India
India is the largest producer of iron ore in the world. Today, India exports more than 35 million tonnes of iron ore.
Tags: Corona Virus • COVID-19 • Economic Slowdown • Exports • Imports
On March 16, 2020, the Commerce Ministry reported that the gold imports for the period April to February (2019-20) has reduced by 8.86% as compared to the previous year.
India is the largest importer of gold in the world. As the gold imports of the country have been reduced, the trade deficit has reduced to 143.12 billion USD. It was around 173 billion USD a year ago.
Gold imports of India has been declining since December 2019. On an average India imports 800 to 900 tonnes of gold annually.
What is the issue?
Indian economy has been facing increased current account deficit due to import of gold and fuel.
The Current Account Deficit is the difference between money flowing in on exports and the money flowing out on imports. A country with increasing CAD means that it is becoming uncompetitive. It also means that investors are not willing to invest.
Therefore, reducing gold and oil imports will reduce current account deficit.
Tags: Crude oil Imports • current account deficit • Exports • gold • India exports