Current Affairs India - 26 May 2014

1. India-s balance of payment (BoP) sharply jumped to USD 7.057 billion in the fourth quarter of 201314 compared to USD 2.68 billion in the same period in 201213, as per RBI data published today. However it decreased steeply from USD 19.1 billion in the previous quarter. For the full year, the BoP stood at USD 15.459 billion.

The current account deficit dropped sharply to USD 1.2 billion or 0.2% of GDP in fourth quarter of FY14 from USD 18.1 billion or 3.6% of GDP in the same quarter last year. In the previous quarter (third quarter of FY14), CAD stood at USD 4.2 billion or 0.9% of GDP. The lower CAD was primarily on account of a decline in the trade deficit as decline in imports was sharper than that in exports. In FY14, current account deficit dropped to 1.7% of GDP, or USD 32.4 billion, from 4.7% of GDP or USD 87.8 billion in the previous fiscal year FY13.

2. Indian rupee jumped to 11-month high today which has made it the best performing currency against the US dollar in the Asia-Pacific region so far this year. Indian rupee jumped to 11- month high due to increase foreign capital inflow after recent election result which ensures stable government for next 5 year with BJP getting absolute majority.

3. Singapore became the top source of foreign direct investment (FDI) into India after replacing Mauritius, as per the latest data published by the Department of Industrial Policy and Promotion (DIPP). India attracted USD 5.98 billion FDI from Singapore in financial year 2013-14 compared to USD 4.85 billion invested from Mauritius. The total FDI flows from Singapore accounted for about 25% of FDI inflows in 2013-14.

Mauritius has been the top source of FDI in India for a very long time, but FDI dried up recently on fears of the impact of General Anti Avoidance Rules (GAAR) and possible re-negotiation of the tax avoidance treaty.

4. Network18 has appointed Avinash Kaul as CEO of IBN18 Network today. He will be responsible for the day-to-day operational, strategic and financial management of the general news network. He has been given the mandate for the TV18-s consolidation and diversification.