In the March edition of General Awareness, It is 3-4 March general awareness which covers RBI News. A key update is the RBI’s decision to ease bank capital requirements by rolling back the increased risk weights on loans to NBFCs. Effective from April 1, 2025, this move aims to boost credit flow, improve liquidity, and support better-rated NBFCs. It follows a decline in bank loan growth to NBFCs, prompting the RBI to reverse its earlier decision. This policy change is expected to provide relief to both banks and NBFCs, strengthening the financial ecosystem.
General Awareness: India’s Q3 FY2024-25 GDP Growth and Economic Trends
India’s real GDP grew by 6.2% in Q3 FY2024-25, an improvement from 5.6% in the previous quarter but lower than 9.5% in Q3 FY2023. The growth rate was 0.2 percentage points below RBI’s estimate, despite positive indicators such as higher GST collections, increased public spending, rising electricity generation, and strong exports.
General Awareness: Important Points
Government spending saw a notable increase of 8.3%, while private consumption expanded by 6.9%, both showing an improvement from last year. Exports recorded a robust 10.4% growth, whereas imports fell 1.1% due to rupee depreciation. However, investment growth slowed, with Gross Fixed Capital Formation at 5.7%, compared to 9.3% in Q3 last year.
The economy had expanded 6.5% in Q1 and 5.6% in Q2. To achieve the 6.5% full-year GDP target, the economy needs to grow 7.6% in Q4, which experts consider ambitious. However, some believe the goal is achievable if exports continue rising, capital expenditure increases, and private consumption sees a boost—especially due to increased spending during Maha Kumbh.
General Awareness: Crisil’s FY26 GDP Forecast and Expected Repo Rate Cut
Crisil projects India’s GDP growth to remain stable at 6.5% for FY26, slightly slowing from 9.2% in the previous fiscal year. This aligns closely with India’s pre-pandemic decadal average of 6.6%, ensuring that the country retains its position as the fastest-growing large economy.
The RBI’s Monetary Policy Committee (MPC) is expected to cut the repo rate by 50-75 basis points, which could support discretionary consumption and economic expansion. Private consumption is likely to recover, driven by normal monsoons, lower food inflation, and tax benefits announced in the Budget 2025-26.
Investment growth will depend on private corporate capital expenditure, as the government is expected to moderate its capital spending to meet fiscal deficit targets. While imports are expected to remain strong, exports could face pressure due to potential US tariff hikes and global trade uncertainties. Increased Chinese imports due to global trade shifts may further impact India’s net exports in FY26.
The RBI’s recent liquidity easing measures and relaxed NBFC regulations are expected to boost monetary transmission and overall economic stability.
General Awareness : SBI to Sell 17.8% Stake in Jio Payments Bank
The State Bank of India (SBI) has decided to divest its entire 17.8% stake in Jio Payments Bank to Jio Financial Services (JFS) for ₹104.5 crore. This will make Jio Payments Bank a wholly-owned subsidiary of JFS.
Currently, JFS holds an 82.17% stake in Jio Payments Bank and will acquire 79 million equity shares from SBI at ₹13.22 per share, valuing the bank at ₹586 crore. The SBI board has approved the deal, which is subject to RBI approval and is expected to be completed within 45 days of receiving clearance.
Following the announcement, JFS shares surged by 3.02%, closing at ₹716.15 on Tuesday. Jio Payments Bank is one of five payments banks in India, alongside Airtel Payments Bank, Fino Payments Bank, India Post Payments Bank, and NSDL Payments Bank.
This move consolidates Reliance Group’s control over Jio Payments Bank, aligning with its broader financial expansion strategy. This is best point of General Awareness.
General Awareness : Cabinet Approves Ropeway Projects Under Parvatmala Pariyojana
The Cabinet Committee on Economic Affairs (CCEA), chaired by PM Narendra Modi, has approved two major ropeway projects in Uttarakhand under the DBFOT (Design, Build, Finance, Operate, and Transfer) model.
- Hemkund Sahib Ji Ropeway: Spanning 12.4 km, this project will cost ₹2,730.13 crore and significantly reduce the existing 21-km uphill trek, providing all-weather connectivity for pilgrims and tourists visiting the Valley of Flowers.
- Kedarnath Ropeway: Covering 12.9 km, this ₹4,081.28 crore project will employ Tri-cable Detachable Gondola (3S) technology, cutting travel time from 8-9 hours to just 36 minutes.
These projects are expected to boost employment in the construction, tourism, hospitality, travel, and food & beverage industries, promoting socio-economic development in hilly regions. Additionally, they will provide eco-friendly, fast, and comfortable connectivity, reducing reliance on ponies, palanquins, and helicopters, and ensuring safer access for pilgrims.
General Awareness : About Parvatmala Pariyojana
- Announced in the Union Budget 2022-23, this initiative aims to enhance connectivity in hilly regions through ropeway projects.
- The scheme follows a PPP (Public-Private Partnership) model, offering an ecologically sustainable alternative to conventional roads.
- It seeks to improve commuter convenience, promote tourism, and ease congestion in urban areas.
- Initially launched in Uttarakhand, Himachal Pradesh, Manipur, Jammu & Kashmir, and other North-Eastern states.
Government Expands PLI Budget to Accelerate Manufacturing Growth
India’s manufacturing sector is undergoing a transformation, driven by the Production Linked Incentive (PLI) Scheme, which aims to boost innovation, efficiency, and competitiveness across key industries.
For FY2025-26, the government has increased PLI budget allocations:
- Electronics and IT Hardware: ₹9,000 crore
- Automobiles: ₹2,818.85 crore
- Textiles: ₹1,148 crore
Covering 14 critical sectors, the PLI scheme has a budget outlay of ₹1.97 lakh crore, fueling technological advancements, exports, and India’s global market position. So far, investments worth ₹1.46 lakh crore have been made under the scheme, which is expected to exceed ₹2 lakh crore, leading to ₹12.50 lakh crore in production and 9.5 lakh jobs, projected to increase to 12 lakh jobs.
Foreign Direct Investment (FDI) reforms have also enhanced industrial growth, with FDI in manufacturing rising by 69%, from USD 98 billion (2004-14) to USD 165 billion (2014-24). The government has allowed 100% FDI in key sectors, further strengthening India’s position as a global manufacturing hub.
General Awareness : Key industry impacts:
- Electronics manufacturing has surged, making India a net exporter of mobile phones.
- Pharmaceutical exports now account for 50% of production, reducing import dependence.
- The Automotive PLI Scheme has attracted ₹67,690 crore in investments, boosting high-tech automobile production.
- Solar and telecom PLI initiatives have strengthened renewable energy and telecom exports.
The PLI Scheme is a key pillar of the Atmanirbhar Bharat initiative, accelerating self-reliance, exports, and technological growth, and reinforcing India’s emergence as a leading global manufacturing powerhouse.
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