Business, Economy & Banking Current Affairs
Category Wise PDF Compilations available at This Link
The government has decided to issue new series of sovereign gold bonds between January 14 and January 18 at Rs 3,214 per gram and those who subscribe to the bonds online will get a discount of Rs 50 per gram.
Sovereign gold bond scheme
The Sovereign gold bond scheme was introduced by the government in 2015 to reduce the demand for physical gold by shifting a part of the physical bars and coins purchased every year for investment into gold bonds. The features of the scheme are:
- Sovereign gold bonds are issued by the RBI on behalf of the government
- Sovereign gold bonds are denominated in grams of gold and investments can be done in multiples of one gram with a maximum limit of 4 kg per person.
- The Resident Indians including individuals (in his capacity as an individual, or on behalf of minor child, or jointly with any other individual), HUFs, Trusts, Universities and Charitable Institutions are eligible to avail these bonds.
- The tenor of the Bond is of 8 years with an exit option in 5th, 6th and 7th year.
- The investors will also be compensated at a fixed interest rate of 2.50 per cent per annum payable semi-annually on the nominal value.
- Bonds can be used as collateral for loans.
- The interest on Gold Bonds shall be taxable and are exempted from the capital gains tax on redemption.
- Bonds will be tradable on stock exchanges.
The Sovereign gold bonds also aid in maintaining the current account deficit as most of the demand for gold in India is met through imports.
The Index of Industrial Production for the month of November has been released by the Central Statistical Office, under the Ministry of Statistics and Programme Implementation.
The Index of Industrial Production (IIP) provides details about the growth of various sectors in an economy such as mineral mining, electricity and manufacturing. IIP is a composite indicator that measures the short-term changes in the volume of production of a basket of industrial products during a given period with respect to that in a chosen base period.
Key Facts about the IIP, November 2018
The IIP report of CSO makes the following observations:
- Industrial growth unexpectedly plummeted to a 17-month low in November as a result of the post-festival season decline in manufacturing, fewer working days in the month and tighter financial conditions.
- The Index of Industrial Production (IIP) stood at 0.47 per cent in November and the high base of last year has also contributed to the slowdown. IIP had witnessed a growth of 8.5 per cent in November 2017.
- Manufacturing which constitutes 77.63 per cent of IIP, shrank 0.4 per cent, the Manufacturing had witnessed a robust growth of 10.4 per cent in November 2017.
- The production of both capital goods and consumer goods saw a decline.
- Mining expanded by 2.7 per cent in November 2018 compared with 1.4 per cent in November 2017.
- The electricity generation rose 5.1 per cent.
- The Production of intermediate items was down 4.5 per cent.
The Industrial growth in India is still not on a sound footing due to the high variability in industrial growth across sectors and within sectors on a month-on-month basis. It is expected that incrementally improving liquidity, normalisation after festive season related disruptions and spending tied to elections would act as a catalyst for the growth.