Global Geopolitics: BRICS Expansion
- The BRICS group officially inducted six new full members, effective January 1, 2024.
- The expanded membership includes the Islamic Republic of Iran, Saudi Arabia, the United Arab Emirates (UAE), Ethiopia, Egypt, and Argentina (though Argentina later declined to join).
- Expansion aims to strengthen the collective economic leverage of the Global South.
- Key focus areas of discussion included promoting de-dollarization through increased trade settlement in local currencies and improving connectivity infrastructure among member states.
- The bloc’s share of the global population now exceeds 45%.
National Economic Policy: RBI Monetary Review
| Indicator | Current Status | Key Rationale/Observation |
|---|---|---|
| Repo Rate | Maintained at 6.5% | Focus remains on the sustained withdrawal of accommodation to anchor inflation expectations. |
| CPI Inflation Forecast | Revised upwards (Q3 and Q4) | Primarily driven by volatile food prices (especially vegetables and pulses) and impact of uneven monsoon distribution. |
| GDP Growth Projection | Maintained (e.g., at 6.5% for current fiscal year) | Supported by resilient domestic demand, strong manufacturing sector performance, and continued high capital expenditure by the government. |
| Liquidity Management | Increased use of Standing Deposit Facility (SDF) | Strategy employed to manage system liquidity surplus and ensure balanced money market conditions. |
Major Environmental Initiatives
Green Credit Programme (GCP): An innovative market-based mechanism designed to incentivize environmental action.
- Aims to create demand for positive environmental behaviors by providing measurable credits for various activities (e.g., water conservation, afforestation).
- Credits generated under GCP can be traded on a domestic exchange platform.
National Green Hydrogen Mission: Aims to establish India as a global hub for the production, utilization, and export of Green Hydrogen.
- Target: Achieve production capacity of 5 million tonnes per annum (MTPA) by 2030.
- Projected investment: Over ₹8 lakh crore (approx. 100 billion USD).
- Expected outcome: Reduction of cumulative fossil fuel imports by over ₹1 lakh crore and abatement of nearly 50 million tonnes of CO2 emissions annually.
Conservation Status Update:
- Project Tiger: Completed 50 years of operation; reported the Indian tiger population has stabilized and is growing moderately in several key reserves.
- Cheetah Reintroduction: Efforts continue under the action plan to establish self-sustaining populations in the Kuno National Park, focusing on monitoring mortality rates and dispersal patterns.