Current Affairs - Economy

Digital payment transactions in India saw a remarkable growth of 44% in the last fiscal year, reaching ₹18,000 crore. The Unified Payments Interface (UPI) played a crucial role in driving this expansion, alongside significant contributions from IMPS and the National Electronic Toll Collection system. To further boost digital payments, the government allocated ₹3,500 crore for RuPay and BHIM-UPI promotion incentives. Additionally, the RBI’s Payment Infrastructure Fund facilitated the installation of 4.08 crore digital payment touchpoints in remote areas, enhancing financial inclusion and accessibility across the country.

Canada has imposed a 25% tariff on $155 billion worth of U.S. imports in response to U.S. tariff actions. The initial phase includes $30 billion worth of goods, with additional tariffs on another $125 billion set to follow in 21 days. This move is part of a broader trade conflict involving multiple countries, as China and Mexico are also considering countermeasures. The retaliatory tariffs highlight the ongoing tensions in global trade policies, particularly between Canada and the United States.

The Cabinet has approved a 3% increase in ethanol procurement prices for public sector Oil Marketing Companies (OMCs), effective from November 1, 2024, under the Ethanol Blended Petrol (EBP) Programme. This revision raises the price of ethanol derived from C Heavy Molasses from ₹56.58 to ₹57.97 per litre. The move is aimed at enhancing ethanol supply, supporting India’s ethanol blending targets, and providing economic benefits to ethanol producers and sugarcane farmers while also contributing to environmental sustainability.

India’s share of global consumption is expected to increase from 9% in 2023 to 16% by 2050, making it the second-largest contributor after North America, which stands at 17%. This growth is attributed to India’s youthful and expanding population, coupled with rising incomes. Meanwhile, advanced economies are seeing declining fertility rates, shifting global demographic attention to regions like India.

India has emerged as the seventh-largest coffee producer globally, showcasing significant growth in the sector. In the last financial year, India’s coffee exports reached 1.29 billion dollars, nearly doubling from 719 million dollars in 2020-21. Karnataka leads in coffee production, followed by Kerala and Tamil Nadu, which are key contributors to this achievement. This growth highlights India's increasing importance in the global coffee industry and the country’s capability to expand its presence in international markets.