Current Affairs June 2017 - Economic

1 - India loses fastest growing economy tag after GDP in Q4 grew at 6.1%

India lost its status of the world's fastest growing economy after the country's GDP or gross domestic product grew 6.1% year-on-year during the January-March period.

China's GDP grew 6.9% during the same quarter. During Q4, forestry and fishing sectors grew at 5.2%; mining and quarrying at 6.4% and manufacturing at 5.3%.

The GDP growth rate for the full year (2016 17) stood at 7.1%. During the previous quarter, (October-December) India's GDP grew at 7%.

2 - SEBI Approves Airtel and Telenor Merger

Market regulator SEBI and stock exchanges (BSE and NSE) have approved the proposed merger of Airtel with Telenor. Bharti Airtel will acquire the business of Telenor India for an undisclosed amount in all seven circles where the latter holds spectrum.

Airtel would take over Telenor India's spectrum, licences and operations, including its employees and customer base of 44 million. Telenor is currently running operations in seven circles - Andhra Pradesh, Bihar, Maharashtra, Gujarat, UP (East), UP (West) and Assam.

3 - RCom-Aircel merged wireless company to be called Aircom

The merged entities of RCom and Aircel will be called Aircom. Both the companies, Reliance Communications and Maxis Communications Berhad (MCB), had announced their merger plans in September 2016.

Both RCom and Maxis Communications will hold 50% each in the merged entity and have equal representation on the board and committees. Once the deal is completed, RCom’s overall debt will be reduced by Rs. 20,000 crore, while Aircel's debt will reduce by Rs. 4,000 crore.

4 - India’s Seafood Export at all-time High in 2016-17

India exported 11,34,948 MT of seafood worth an all-time high of US$ 5.78 billion (Rs. 37,870.90 crore) in 2016-17 as against 9,45,892 tons and 4.69 billion dollars a year earlier. USA and South East Asia continued to be the major importers.

Frozen shrimp maintained its position as the top item of export, accounting for 38.28% in quantity and 64.50% of the total earnings in dollar terms. Frozen Fish was the second largest export item, accounting for a share of 26.15% in quantity and 11.64% in dollar earnings.

5 - NHB approved merger of Aadhar Housing Finance and DHFL Vysya Housing Finance

The National Housing Board has given its approval for merger of Dewan Housing Group companies Aadhar Housing Finance Ltd and DHFL Vysya Housing Finance Ltd. The merger will be completed by August 2017.

Clearances from the Competition Commission of India (CCI) and the National Housing Bank (NHB) have already been obtained. Under this scheme, Aadhar Housing will be merged into DHFL Vysya.

However, the merged entity will be named as Aadhar Housing Finance.

6 - Microsoft to acquire Israeli security firm Hexadite

Microsoft has announced that it will acquire Hexadite, an Israeli start up that uses AI to identify and protect against attacks. The deal is finalised for a price of $100 million.

Hexadite would be fully absorbed into Microsoft as part of the Windows and Devices Group. Its headquarters are based in Boston, with a team of researchers in Tel-Aviv, Israel. Other security acquisitions Microsoft has made in Israel include Aorato, Adallom and Secure Islands.

7 - IRDAI took over administration of Sahara Life Insurance

The Insurance Regulatory and Development Authority of India (IRDAI) took over the administration and management of Sahara India Life Insurance. RK Sharma, General Manager, IRDAI, has been appointed as administrator to manage the affairs of the insurer.

IRDAI has ensured to service policyholders and manage the affairs of the insurer in smooth and feasible manner.

Sahara India Life Insurance is a Lucknow based fully owned life insurance company in the private sector with paid-up capital of ₹157 crore.

8 - Verizon acquired Yahoo for $4.48bn

Top ranked wireless operator of US, Verizon acquired Yahoo’s core business for $4.48bn (£3.51m). It has been announced that Yahoo Sports, Yahoo Finance, Yahoo Mail and more will remain same as before. As a part of new venture, Verizon is rebranding AOL and Yahoo under name Oath.

The remaining of Yahoo, which is not acquired by Verizon telecom, will change its name to Altaba Inc, due to acquisition. It will become a holding company with 15.5% stakes in Chinese Internet giant Alibaba and a 35.5% holding in Yahoo Japan Corp. It will begin trading under the ticker symbol “AABA".

9 - India topped global remittance-receiving list

India has claimed the top spot among the remittance-receiving nations, surpassing China. According to United Nations report, Indians working across the globe sent home 62.7 billion US dollars.

According to the 'One Family at a Time' study by the UN International Fund for Agricultural Development, about 200 million migrants globally sent more than 445 billion dollars as remittances in 2016 to their families.

Remittance flows have grown over the last decade from 296 billion in 2007 to 445 billion dollars in 2016.

10 - Export of spices & spice products achieved growth of 12 % in 2016-17

The export of spices and spice products achieved a growth of 12% during 2016 17. According to Spices Board in Kochi, 9,47,790 lakhs tons of spices were exported earning 17664.61 crore rupee. In 2015-16, the country had exported 8.43 lakhs tons worth around 16 thousand crores.

Chilli continued to be the most sought after spice, registering an increase of 27% in value in the last fiscal year. Cumin was the second most exported spice recording a rise of 22% in quantity and 28% in value.

11 - CCI slammed Rs. 87 crore penalty on Hyundai Motor India

Competition Commission of India slammed fine of Rs. 87 crore on Hyundai Motor India for offering unfair discounts on passenger cars. However, Hyundai has announced to challenge the ruling. According to CCI, Hyundai Motor India has a discount control mechanism whereby dealers are permitted to provide a maximum permissible discount and not beyond the recommended range by CCI.

A penalty was imposed to 0.3 per cent of the company’s average relevant turnover in the last three financial years from 2013-14.

12 - DGCA suspended flying license of Air Carnival

Coimbatore-based Air Carnival’s flying permit was cancelled by Directorate General of Civil Aviation due to its delay in giving response to the show-cause notice. DGCA is the considered as a regulatory body governing the safety aspects of civil aviation in India. Air Operator Permit has also been cancelled for other two Airlines such as Air Pegasus and Air Costa.

DGCA may cancel or suspend AOP of an airline for such period when it feels that the holder of the permit has failed to establish a safe, efficient and reliable service.

13 - Tata Group, Lockheed Martin signed deal to manufacture F-16 fighter jets in India

Tata Group and American aerospace giant Lockheed Martin signed an unprecedented deal to produce, operate and export the combat-proven F-16 fighters in India. This partnership significantly strengthens the F-16 'Make in India' offer, creates and maintains numerous new job opportunities in India and the US, and brings the world's most combat-proven multi-role fighter aircraft to India.

The deal is ideally suited to meet Indian Air Force's single-engine fighter needs. The deal is a boost to Prime Minister Narendra Modi's plan 'Make in India'.

14 - SpiceJet became world's top airline stock with 124% gain in 2017

Spicejet has become the world’s best-performing airline stock. Its shares are the best performers on a Bloomberg Intelligence index of airline stocks in the year 2017.

The stock has gained 124% in 2017, and nearly 800% since the company's near liquidation situation in 2014.

The company currently has a market value of US$ 1.2 billion. SpiceJet has announced an order worth $22 billion for 100 new aircraft with Boeing.