New Economic Policy and Government Sector
Das to meet CEOs of banks to discuss slow deposit growth
- Reserve Bank Governor Shaktikanta Das will hold a meeting with CEOs of public sector banks on Wednesday to discuss issues concerning slow deposit growth and the sustainability of high credit demand.
- According to Reserve Bank of India (RBI) data, deposits rose by 9.6% compared with 10.2% on a year-on-year basis, while credit offtake witnessed a jump of 17.9% as against 6.5% a year earlier.
- The meeting would also review the functioning of Digital Banking Units unveiled by Prime Minister Narendra Modi recently.
About Digital Banking Units
- It is a specialised fixed point business unit or hub, set up by scheduled commercial banks, housing certain minimum digital infrastructure for delivering digital banking products and services as well as servicing existing financial products and services digitally in self-service mode at any time.
- The DBUs are being set up to ensure the benefits of digital banking reach across the country.
Recent Trends in Economy
Widening Trade Deficit
- India’s merchandise exports shrank 16.7% in October to $29.8 billion as the global slow down dented overseas demand for the country’s goods.
- The first contraction since February 2021 dragged outbound shipments below the $30 billion level for the first time in 20 months.
- The Imports grew 5.7% year on year to $56.7 billion, widening the trade deficit in October to $26.91 billion, as per data released by the Commerce Ministry.
Note
- October was the fourth successive month when the gap between India’s imports and exports exceeded $25 billion.
- It is stated by the Ministry of Commerce that the October trade data was impacted by the Deepavali, Dussehra festive period as factory workers tend to go on leave and production drops.
Reports and Indices
The Global Population achieved 8 billion
- According to the United Nations (UN) World Population Prospects 2022: Summary of Results (27th edition), the global population is projected to achieve 8 billion on November 15, 2022, and India is expected to overtake China as the world’s most populated country in 2023.
- The UN population report said the global population is growing at its slowest rate since 1950, having fallen under 1 per cent in 2020. The world’s population could grow to around 8.5 billion in 2030 and 9.7 billion in 2050. It is projected to reach a peak of around 10.4 billion people during the 2080s and to remain at that level until 2100.
- More than half of the projected increase in the global population up to 2050 will be concentrated in eight countries: the Democratic Republic of the Congo, Egypt, Ethiopia, India, Nigeria, Pakistan, the Philippines and the United Republic of Tanzania. Countries of sub-Saharan Africa are expected to contribute more than half of the increase anticipated through 2050.
- As per UN estimates, over 27 per cent of the country’s population is between the ages of 15-29. At 253 million, India is also home to the world’s largest adolescent population (10-19 years).
- United Nations Population Fund (UNFPA) has noted that India has its largest ever adolescent and youth population. According to UNFPA projections, India will continue to have one of the youngest populations in the world till 2030 and is currently experiencing a demographic window of opportunity, a “youth bulge” that will last till 2025.
