Current Affairs 21 December, 2024

Daily Current Affairs Quiz

21 December, 2024

International Affairs

1. Trump threatens EU

Context:

President-elect Donald Trump threatens to apply tariffs on the European Union if the union fails to balance its trade gap with Washington by buying oil and natural gas.

Key Highlights:

• Trump claimed that the EU should make big purchases of oil and gas to cover its trade deficit with the US.
• The EU’s goods trade deficit with the US was at the US $202.5 billion in 2022.
• The EU chief Ursula von der Leyen suggested that the US might be able to export more liquefied natural gas to replace Russian energy.

The European Union (EU)

The European Union (EU) is a political and economic partnership between 27 European countries.

• Supranational political and economic union of 27 member states.
• Population:
  • over 449 million.
• Members
  • 27 Countries
• President of the European Council
  • António Costa
• Established
  • The EU was created by the Maastricht Treaty, which entered into force on November 1, 1993.

2. Federal Reserve Bank Rate Cut

Context:

Fed brings interest down by 100 basis points, reducing the target range to 4.25%-4.5%.

Key Highlights:

• 100 basis points (BPS) is equivalent to a 1% change.
• Fourteen members said uncertainty regarding the outlook for core personal consumption expenditures (PCE) inflation was higher now than it had been in September.
• Reason:
  • President-elect Donald Trump agenda: tariffs, trade war, tax cut, and immigration policy.

Personal Consumption Expenditures (PCE)

• It addresses consumption on the part of the personal sector; it includes households and nonprofit institutions serving households.
• The CPI measures the household-specific consumption.

The Federal Reserve Bank

The Federal Reserve Bank is a regional bank of the Federal Reserve System, the central banking system of the United States

• Established
  • December 23, 1913
• Headquarter
  • Washington D.C U.S
• Chairman
  • Jerome Powell

3. Pakistan Ballistic Missile Programme: Emerging Threat to U.S.

Context:

A senior White House official says that a top threat to the United States is Pakistan’s advancing of sophisticated missile technology.

Key Highlights:

• The United States sanctioned four Pakistani entities, including NDC, for providing key components to Pakistan’s ballistic missile programme.
• NDC oversees the ballistic missile program in Pakistan and has sought supplies to enhance Pakistan’s long-range missile program.

4. The Bald Eagle: A National Symbol and Symbol of Freedom

Context:

US Congress Passes Bipartisan Bill to Designate Bald Eagle as National Bird

• The bald eagle, symbolizing freedom, resilience, and strength, was first incorporated on the Great Seal of the United States in 1782.
• Despite its cultural significance, the bird has never been officially named the national bird.
• The bipartisan Bill, passed by the US Congress, aims to officially designate the bald eagle as the national bird.

Bald Eagle

• Bald eagle found in North America.
• Forms a species pair with white-tailed eagle.
• Range includes Canada, Alaska, contiguous U.S., and northern Mexico.
• IUCN Status:
  • Least Concern

National Affairs

1. SC on Credit Card Dues

Context:

Supreme Court accepted appeals from banks that were challenging the 2008 order passed by the National Consumer Disputes Redressal Commission (NCDRC).

Key Highlights:

• It had decided that an excess interest charge of more than 30% on dues over credit cards is an unfair trade practice under the Consumer Protection Act.
• The NCDRC had earlier held that if payment is delayed or defaulted within a specified time, banks are allowed to charge interest rates between 36% to 49% per annum.
• The court further held that penal interest can be recovered only once for one period of default and not capitalized.

National Consumer Disputes Redressal Commission

• A quasi-judicial commission created under the Consumer Protection Act, 1986 in 1988.
• The Commission is located at New Delhi, and it is presided over by Justice Amreshwar Pratap Sahi.
• The Commission’s jurisdiction is limited to complaints exceeding two crores, and it has Appellate and Revisional jurisdiction with regard to orders by State Commission or District fora, as stipulated by the Act.

2. Siliguri corridor a crucial link, says Shah

Context:

“Located between Mahananda and Teesta, the Siliguri corridor serves as an important link between the northeast and the rest of India.” Mr. Shah said.

3. One Nation One Election in india

• The ONOE concept of India gives a call to conduct simultaneous elections to the Lok Sabha and State Assemblies from every part of the country.
• It is bringing about the simultaneous conduct of polls rather than having staggered elections at different intervals for different legislatures.
• Consolidation of all elections means that they would take place at one time instead of seperately.

Read more>>

4. New Undersea Cables: India’s Digital Connectivity

Context:

India has been expanding its subsea cable network by two recently launched systems: India Asia Xpress (IAX) and India Europe Xpress (IEX).

Highlights:

• IAX connects Chennai and Mumbai with Singapore, Thailand, and Malaysia in the Asian region, whereas the IEX connects the Indian cities with France, Greece, Saudi Arabia, Egypt, and Djibouti.
• The expansions depict rising traffic and more geopolitically ambitious nature that enhances India’s defense mechanism against physical damages or digital disruptions from cyberattacks.

5. 36 Crore Beneficiaries Verified Under PM-JAY

Context:

Approximately 36 crore beneficiaries have been verified, and 8.39 crore hospital admissions worth over ₹1.16 lakh crore have been authorised under the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PM-JAY)

What is PM – JAY?

6. Jatra in Ganjam District of Odisha

Context:

• The folk form of theatre, Jatra, has been transformed into a modern and commercial show where stunts and acrobatics take over.
• The incident in Odisha, has caused a controversy among all drama lovers and animal welfare activists as a farmer here, Bimbadhar Gouda, played Viradha.
• The incidence has led to several cases falling under sections related to cruelty to animals under the Bharatiya Nyaya Sanhita, 2023 and the Prevention of Cruelty to Animals Act, 1960.

7. MoD for K9 Vajra artillery

Context:

Indian Ministry of Defense enters into an agreement with Larsen & Toubro Limited for a contract worth ₹ 7,628.70 Crores.

Highlights:

• The Ministry of Defence (MoD) signed a contract with Larsen & Toubro Limited for an additional 100 units of 155 mm/52 calibre self-propelled tracked artillery guns for the Indian Army, known as K9 Vajra.
• This is a “Buy (Indian)” category purchase, thereby complementing the Centre’s “Aatmanirbhar Bharat” vision.

What is “Aatmanirbhar Bharat” vision?

8. Unicorn Startups in India

Context:

The number of workers in unicorn startups of India reduced by about 6,700 between August 2023 and the same month this year, with layoffs being part of the reason for the decline, according to an analysis by PrivateCircle Research.

Key Highlights:

• As reported by Private Circle Research,, unicorn startups in India are down by almost 6,700 employees during the months from August 2023 onwards in August 2023.
• These 116 Indian unicorns hired close to 410,829 people in August 2023, which is down from around 417,561 compared to the same month of the 2023.
• Highest were the Delhi NCR lot of unicorns such as Policy Bazaar, Blinkit, and Zomato.

Private Circle

• Established
  • 2015
• Present private market intelligence provider
• Provides comprehensive, accurate, timely information to investors and corporations.

9. Space Parks Planned by Government in India

Context:

The central government is considering the possibility of establishing dedicated spaces for subsidized manufacture and space technology development.

Highlights:

• With several countries moving towards indigenisation in the design and manufacture of satellite components, launch vehicles, and geospatial navigation and monitoring systems, India is keen on scaling up local manufacture.
• It may also be in the upcoming national budget.
• The Prime Minister’s Office and Niti Aayog have mentioned the need for forming domestic manufacturing focused value chains for most of these sectors.

Also Read: ISRO International Space Research Organization

10. SIMmering Threat

Context:

Delhi Police Reports 245% Rise in Blocking of SIM Cards

Key Highlights:

• The Delhi police had blocked as many as 35,613 SIM cards this year so far as compared to the last year when they managed to block 10,322.
• Even IMEIs that were being blocked went up from a meager 13 to as high as 3,454 this year.

Banking/Finance

1. World Bank approves loan of $800 million

Context:

World Bank Approved $800M Loan for Amaravati Integrated Urban Development Programme.

Key Highlights:

• The International Bank for Reconstruction and Development has approved an 800 million US dollars loan for Amaravati Integrated Urban Development Program.
• AIUDP will help build Amaravati as a resilient growth center job-creating city for the improved quality of life of the residents.
• The AIUDP supports India’s urban transformation as the projected urban population would be at 950 million by 2050.
• The first phase of city development is financed by World Bank and Asian Development Bank.
• The loan will be mature after 29 years and will have a grace period of 6 years.

World Bank

What is Amaravati Integrated Urban Development Programme?

2. Monetary Policy Committee’s Expectations of Falling Inflation

• Forecast- The economists predict falling of inflation during Q4 in FY25.
• Suggested Rate Cut- He favours 25 basis point cut. Food inflation hugely influences CPI.

India’s retail inflation and food inflation

Inflation

3. State Finance Ministers Seek Greater Capital Expenditure Support

Context:

State finance ministers urged Union Finance Minister Nirmala Sitharaman on Friday to increase allocations for the 50-year interest-free loans to states for capital expenditure and to raise their borrowing limits in the upcoming Union Budget for 2025-26.

How state finance minister can take loan from center?

A state finance minister can borrow a limited amounts from Government of India if the following conditions a state may qualify to meet:

• Parliamentary approval:
  • A loan by Government of India to any state is only subject to such conditions, from time to time, as Parliament may determine.
• No pending loans:
  • There is no outstanding loan or guarantee to that state from the center.
• Central consent:
  • Without the central consent, the center cannot raise fresh loans. While giving such consent, center can impose conditions on it.
• Constitutional Provisions:
  • Article 293 deals with borrowing power of states and center:
  • Article 292, no money can be borrowed by the center without anticipation of any issuing out of the Consolidated Fund of India.
• If a state has any outstanding loans or guarantees from the center, such state cannot borrow except with the center’s consent.

4. Monetary Policy Meeting by RBI

Context:

Taming food prices, which have been driving the headline inflation rate, through interest rates has a limited impact, said two external members of the Reserve Bank of India´s (RBI´s) Monetary Policy Committee in the December policy review.

Context:

• External members of the Reserve Bank of India’s Monetary Policy Committee, Nagesh Kumar and Ram Singh, voted for the cut of a policy repo rate by 25 basis points.
• The majority of the Monetary Policy Committee has decided to keep the rate unchanged at 6.50 percent with a 4 2 majority in favor of the decision.

RBI and it’s Monetary Policy

Inflation

5. RBI’s Excessive Interest Rates Policy

Context:

The Reserve Bank of India (RBI) has asked banks not to charge excessive interest rates but does not control the rate.

Context:

• The discretionary authority of RBI under the Banking Regulation Act, 1949 does not allow it to issue further orders.
• The National Credit Rating Commission (NCDRC) condemned the excessive interest rates charged by the banks, which ranged between 36% and 49% per annum in case of default.

6. New Record for IPOs in India

Context:

Collected more than $19 billion through IPOs, surpassing last year’s $17.8 billion.

Highlights:

• Shares of Vishal Mega Mart up by 40% on debut.
• Hyundai’s biggest IPO in India, worth $3.3 billion; trading below offer price.
• Strong domestic growth attracts global investors into Indian capital markets.

What is IPO? 

7. Fin One: Content Platform

Context:

Angel One Ltd, a broking firm, launched its own content platform, Fin One, in response to Sebi’s tightening regulations on financial influencers.

SEBI: Regulation for Algorithmic Trading

Economy

1. India-EU Trade.

Context:

Commerce and Industry Minister Piyush Goyal discussed nontariff barriers that are hindering trade between India and the EU.

Highlights:

• Discussion meeting on Free Trade Agreement negotiations, HighDialogue, IndiaEU Trade Technology Council, and other engagements, investment issues, etc.
• The leaders agreed to plan a bilateral visit to discuss each other’s sensitivities and concerns.

What is European Free Trade Association (EFTA)?

The European Union (EU)

2. Proposal to Make the GST Registration Simpler

Context:

In a bid to simplify the goods and services tax (GST) registration process, the law committee has proposed to the GST Council to implement different categories of GST registrations based on risk assessment and aligning the registration process with passing on of input tax credit (ITC).

• Objective:
  • Process for passing on ITC is in line with alignment; simplifies procedure for small businesses.

• Types of GST Registration:
  • New/Small Businesses: Will be processed and approved with in three working days post-Aadhaar authentication through OTPs.
  • Deemed Trusted Business: The process is simplified, with processing done in three working days, however without extra verifications.
  • Businesses on the Emerge List: Stricter provisions while registration, an initial non-refundable application amount along with security deposit.

Also Know: Goods and Services Tax (GST) and Council Formation

Read more>>

3. India’s Foreign Exchange Reserves Drop

Context:

Reserves dropped by $1.9 billion to $653 billion for the week ending December 13, a six-month low

What is Foreign Exchange Reserve (Forex Reserves)?

4. Why GCCs Are Vital For GDP Growth

Context:

India’s global capability centres (GCCs) are projected to become a $100 billion industry by 2030, employing over 2.5 million professionals, according to a recent report.

Global Capability Centres (GCC)

• GCCs are business units that have been strategically created by MNCs for the outsourcing of their internal business functions.
• The competitive advantages for India include a considerable talent pool, cost competitiveness, as well as adaptability in the business environment.
• Key strategic locations in India are:
  • Bangalore, Hyderabad, Chennai, Pune, Gurugram, and Noida.
• GCCs in India are devising their strategies for high-value, high-competitive frontline areas; in finance, legal support, and research and development, marketing, supply chain, and product development.
• Cost-competitiveness and the geographical location of India attracting GCC are.
• The major activities undertaken by GCCs in India as:
  • IT and Software Development, Finance and Accounting, Customer Support and BPOs, Human Resource Services and Recruitment and Research and Development (R&D).
• GCCs where global companies create by establishing their own research and product development and innovation activities are in India.
• Benefits from GCCs in India include cost savings, a highly skilled workforce, scalability and flexibility, and increased focus on innovation.

GCC Market size in India

• The size of the GCC market in India has grown from $19.6bn in 2015-16 to $46bn in 2022-23.
• During FY2020, GCCs contributed $99-103bn in revenues, paid taxes amounting to $5.4-5.6bn, and created 5.2-5.5mn jobs.
• GCCs represent 23% of Indian IT exports as compared to 18%, which was in 2015.

Agri Business

1. Assam bird sanctuary records 72% decline in bird species

Context:

The number of avian species at a major wetland in north-eastern Assam declined by almost 72% in 27 years, a study has revealed.

• The study on avian diversity at the Bordoibam-Bilmukh Bird Sanctuary (BBBS) straddling the Dhemaji and Lakhimpur districts was published in the Journal of Threatened Taxarecently.
• Bordoibam–Bilmukh Bird Sanctuary (BBBS) · BBBS is a small wetland located on the boundary of Dhemaji and Lakhimpur districts, Assam.

2. MSP for Copra Increases

Context:

Ministry of Agriculture-Union Government Increases Minimum Support Price for Copra in 2025

Highlights:

• For ball copra, the MSP has been raised to ₹12,100 per quintal. it will be an increase from the previous year’s MSP of ₹12,000 in 2024.
• The MSP for ‘milling copra’ has been increased by Rs 420 to Rs 11,582 per quintal.

Copra

Copra is the by-product when coconut oil is extracted and is high in protein and in fiber.

• Originally used as animal feed, it can also be used as a plant fertilizer.
• Copra meal is an organic source of plant nutrients like nitrogen, phosphorous, and potassium.

Copra Production and Soaring Prices in India

• India’s copra production is expected to be 5 lakh tonnes in the oil year 2023-24.
• Coconut oil prices have been on a rise since Onam, which has helped the farming community.
• Copra prices have risen to ₹138 in Tamil Nadu and ₹140 in Kerala.
• The prices were at an all-time high in 2017-18 and 2021-22.
• The Kerala copra market usually witnesses a lean supply season in the second half of the year.
• Factors affecting copra supply include export of raw coconuts, diversion to other products, and high demand for tender coconuts.

The Minimum Support price (MSP)

3. FSSAI seeks quarterly data on rejected, expired food items

Context:

Food Safety and Standards Authority of India (FSSAI) mandates submission of quarterly data on rejected and expired food products. It includes the amount of products failing internal quality test and expired or returned products along with complete trace of disposal.

What is Food Safety and Standards Authority of India (FSSAI)?

4. Shade-Grown Coffee in India: The Sustainable Alternative

• Shade-grown coffee is the most sustainable practice in the coffee industry of India where the coffee crop grows under tree canopy practically and also sustains biodiversity and gives an opportunity to grow indigenous plants.
• The Western Ghats create biodiversity hotspots in most coffee-growing regions of India. The shade-grown coffee farms play a critical role in the conservation of this biodiversity.

Shade-Grown Coffee

• India is the only country that grows all of its coffee under shade.
• Shade-grown coffee is a form of crop produced from coffee plants grown under a canopy of trees. 
• It can be considered as an offshoot of agricultural permaculture or agroforestry.
• Encourages natural ecological relationships.

Benefits of Shade-Grown Coffee

5. Automation Impact on Indian Agriculture

Context:

• Automation is bringing a change in the face of Indian agriculture by bringing in greater efficiency, cutting dependency on manual labor, and higher productivity.

Key Trends and Technologies in Agricultural Automation

• Technological Integration: Traditional farming methods have been substituted with advanced technologies, which are drones, IoT, robotics, and AI.
• Use of Drones in Agriculture: Drones in agriculture are used for precision farming; they provide real-time data, which helps to take decisions.
• Empowerment of women Self-Help Groups by the Indian Government in terms of drone technology: The government has provided ₹1,261 crores for empowering the Self-Help Groups (SHGs) to be adequately prepared in delivering drone rental services under “Namo Drone Didi.”
• Resource Management Automation: Through precision farming technologies, the farmer would be able to effectively and efficiently harness the water as well as the soil resources.
• Training and Education of the Farmers and Rural Entrepreneurs: There are the training programs of 5,000 rural entrepreneurs in order to make an optimum use of automation technologies.
• Rural Employment: The new era of automation in agriculture will bring about enormous employment opportunities in rural areas, such as drone operators, technicians, data analysts, and agricultural engineers.
• Enabling a New Generation of Agriculturalists: Automation changes the culture of Indian farmlands, making agriculturalists more data-driven and better decision-makers.

Read more>>

Facts to Remember

1. Former Haryana CM Om Prakash Chautala dies

Five-time Haryana Chief Minister and Indian National Lok Dal supremo Om Prakash Chautala died on Friday. The State government has declared a public holiday.

2. Human error led to 19 IAF crashes from 2017-2022

• Of the 34 air accidents involving the Indian Air Force (IAF) between 2017 and 2022, 19 were attributable to human error (aircrew), according to a report of the Parliamentary Standing Committee on Defence that was tabled this week.

3. Gujarat ‘ponzi’ scam

• The Gujarat police’s probe into a ‘ponzi’ scam has revealed that people had invested ₹ 360 crore in four years into four bank accounts of absconding main accused Bhupendrasinh Zala, who used ₹100 crore to buy 17 properties, an officer said on Friday.

4. PM’s visit to Kuwait aims to boost partnership

• The historic visit by the Prime Minister is expected to open a new chapter in India-Kuwait bilateral relations,

5. India´s steel imports from China hit record high

• India shipped in 6.5 million metric tons of finished steel, a 26.6 per cent increase yearonyear ( YoY), the data showed.

6. Adani, Sun Petro, others line up ₹ 1.8 trn investment for Bihar

Context:

• Adani group, Sun Petrochemicals, and a host of other companies — big and small —on Friday committed to investing a record ₹ 1.81 trillion in Bihar, across sectors ranging from renewable energy to cement, food processing, and manufacturing