Current Affairs 8 & 9 December, 2024

Daily Current Affairs

8 & 9 December, 2024

National Affairs

1. India-EFTA Trade Pact

Context

Norway plans to ratify the India EFTA free trade agreement next year on march 10 at Brussels, following the signing of the agreement between India and the European Free Trade Association.

Focused areas of the pact

– Talks on Rules of origin and government procurement

• Rules of origin are laws and regulations that governments use to determine the country of origin of the imported products. They help determine the tariff concessions or applicable duties based on the origin of the goods.
• The World Trade Organization’s (WTO) Agreement on Government Procurement (GPA) is a plurilateral agreement that aims to open government procurement markets among its parties, it allows parties to open procurement activities to international competition.
• Indian stakeholders’ concerns regarding EU sustainability measures, such as Carbon Border Adjustment Mechanism and Deforestation Regulation, will be addressed.

European Free Trade Association (EFTA)

• EFTA is a free trade area and regional trade organization which constitutes Iceland, Liechtenstein, Norway, and Switzerland.
• It was born on 3 May 1960.
• Secretariat: Geneva, Switzerland.
• Member Nation: Iceland, Liechtenstein, Norway, Switzerland.
• Main tasks include maintaining and developing the EFTA Convention, managing the EEA Agreement, and developing EFTA’s worldwide network of free trade agreements.

Know more about EFTA?

2. National Mission for Manuscripts (NMM)

Context:

The Union Ministry of Culture is set to “revive and relaunch” the National Mission for Manuscripts (NMM) and is mulling the formation of an autonomous body to help preserve ancient texts in India.

Highlights:

• NMM has ready metadata of 52 lakh manuscripts and has digitized more than 3 lakh titles and published only one-third.

Background on the National Mission for Manuscripts (NMM)

• The Ministry of Culture established the National Mission for Manuscripts (NMM) in 2003 during the 10^th Five Year Plan.
• Presently subsuming into Indira Gandhi National Centre for the Arts (IGNCA).
• National Manuscripts Authority is to be constituted as a new body under the Ministry of Tourism and Culture.
• The NMM will document, conserve, and disseminate into knowledge treasure saved in Indian manuscripts.
• The mission will mine and save under its umbrella an estimated 10 million treasures of manuscript books in India.
• The manuscripts can be broadly described as different texts, weaves, art forms, scripts, languages, calligraphies, and illustrations.
  

The Aims of NMS are:

• Manuscript Search: National level survey and grounded post-survey
  Manuscript Documentation: Developing the world’s largest manuscript database-the National Electronic Database.
• Manuscript Conservation: By modern and indigenous conservation techniques and training of new generation manuscript conservators.
• Manuscript Studies Promotion: Scholars are trained in languages and scripts, critical editing, and cataloguing.
• Digitization and Access: Digitization of rare and endangered manuscripts for far wider public access.
• Public Engagement: Lecture series, seminars, publications and outreach programs.
• Establishing Manuscript Resource Centres: More than 100 Manuscript Resource Centres and Manuscript Conservation Centres towards the length and breadth of India.

3. India’s Anti-Drone Unit

Context:

India plans to establish a comprehensive anti-drone unit to counter the increasing threat of unmanned aerial vehicles (UAVs) at the 60th Raising Day event of the Border Security Force.

Major Issues to tackle:
•Smuggling arms, drugs, and illegitimate products through drones is increasingly being undertaken across borders from India to Pakistan.
•Drone detections and negations can now increase from 3% to 55 % in the Punjab region, where advanced mechanisms have entered the drone detection spectrum.

Key Features of Anti-Drone Unit:

• DRDO anti-drone systems are being deployed along the western border to counter UAV infiltration.
• Laser Mounted Anti-drone guns for targets with high precision and less collateral damage.
• Heavy-duty advanced detection systems using radar-RF detectors and satellite jamming.

A Comprehensive Integrated Border Management System (CIBMS)
It is defined as a futuristic border management system, within which modern technologies are integrated such as sensors, command & control, communication network, advanced fencing along the border, and aerial monitoring to improve surveillance and security across borders in India.

The Vibrant Village Programme (VVP)

• Integrates the villages located along India’s northern borders into the national mainstream and stops migration.
• Targets around 3,000 villages that would be focused on developing infrastructure and community welfare.
• Major Focus areas-Sustainable livelihoods development, Governance strengthening, schools, skill development centers, and self-help groups.

4. Ayushman Vay Vandana Cards 

Context:

Launched by the Indian Prime Minister Narendra Modi on 29th October, 2024, Ayushman Vay Vandana Card has successfully registered 25 lakh seniors within just two months’ time.

Key Features of the scheme:

• The procedures included are: Coronary Angioplasty, Hip Fracture/Replacement, Gall Bladder Removal, Cataract Surgery, Prostate Resection, Stroke, Hemodialysis, Enteric Fever.
• Target Group: All Senior Citizens Age 70 and Above, irrespective of their socio-economic standing.
• Coverage: Free of charge ₹5 lakhs limits of health cover per annum and carry forward top-up cover of an additional ₹5 lakhs every year.
• Additional Benefits Eligibility: Beneficiaries under schemes like CGHS, ECHS, or Ayushman CAPF, eligible private health insurance, or those belonging to Employees’ State Insurance (ESI).
  – Complete Medical Care: It will cover 2000 medical procedures from the first day. Also, diseases existed before are there in coverage.
• Registration and Enrollment: Through the nearest embalmed hospital, self-registration on Ayushman App, or toll-free number.

5. Fund raises through Green Bonds

Context:

NHAI’s Subsidiary DME Development Limited (DMEDL) Successfully Raises Rs. 775 Crore through issue of Green Bonds 

Know more about Green Bond?

Green Bonds

• Green bonds are bonds issued by governments, companies, or multilateral organizations.
• They are issued to fund projects that produce positive impacts on the environment and on climate change.
• Green bonds offer fixed-income payments to the investors.
• Greenium or Green Premium is the savings that accrue on coupon payments.
• Public debts for projects that are intended to accelerate a low-carbon economy in India.
• The framework includes investments in solar and wind energy; biomass; hydro energy; urban mass transportation; green buildings; and pollution prevention and control programs.

Banking/Finance

1. Foreign Direct Investment (India)

Why in News?

FDI inflows into India have crossed the USD one trillion milestone in the April 2000-September 2024 period, firmly establishing the country’s reputation as a safe and key investment destination globally.

Key Findings

Foreign direct investment in India: Important sectors and Nations

• The most important sectors ranked in terms of the inflows include: services, computer software, telecommunications, trading, construction, automobile, chemicals, pharmaceuticals.
• Mauritius is highest with 25%, followed by Singapore with 24%, the USA has 10%, Netherlands, 7%, Japan 6%, UK 5%, UAE 3%, Cayman Islands, Germany, and Cyprus all have 2%.

What is FDI?

• A Foreign Direct Investment (FDI) is an investment done by a firm or any individual in one country into business interests located in another country.
• Usually, these actions are establishing new subsidiaries, acquisitions or mergers between existing foreign companies, or forming a joint venture.
• FDI is one of the important non-debt financial resources for economic development for India.
• FDI in India does not cover the purchases of stocks and bonds of a company, which is a feature of Foreign Portfolio investment (FPI).

Foreign Portfolio Investment (FPI) is the investments made by foreign entities in a country’s financial markets, such as stocks, bonds, or other securities, without taking a controlling interest in any company.

FPI in News: FPI inflow rises to ₹ 24,000 cr in 1st week of Dec

Know more about FDI?

2. Defaults under Employees’ Provident Fund Organisation (EPFO) reached high

Context

Defaults under the Employees’ Provident Fund Organisation (EPFO) surged to an all -time high of ₹25,820.88 crore at the end of 2023-24, up 69.3% from ₹15,254.06 crore a year ago, showed official data.

Key findings from the report

• Total defaults are ₹5,318.42 crores, while ₹4,470.65 crores was the amount outstanding.
• An increase of 243.7% compared to 2022-23 arrears.
• ₹3,505.84 crore topped the charge of Telangana.
• Then Delhi, West Bengal, Sikkim, Jharkhand, and Rajasthan followed.

Employees’ Provident Fund Organisation (EPFO)

• Established by the Parliament of India in 1952, to provide social security for workers in India.
• Under the control of the Ministry of Labour and Employment, Government of India.
• Three major schemes of EPFO: EPFO Scheme 1952, Pension Scheme 1995 (EPS), and Insurance Scheme 1976 (EDLI).
• EPFO is the largest social security organization worldwide in terms of the number of beneficiaries covered and the volume of financial transactions.
• The employee serves for at least 10 years and retires at age 58.
• The Government of India pays 1.16% to an employee’s pension, and employees do not pay to the pension scheme.
• Employees and the employers contribute 12% of the basic salary, dearness allowance, and retaining allowance, if any, of the employee to the EPF.

Read more…

3. Discontinuation of Sovereign Gold Bonds (SGBs) Under Consideration

Context:

With an increased emphasis on reducing government debt, the finance ministry is considering discontinuing the issuance of Sovereign Gold Bonds (SGBs) from the next financial year (2025-26).

Key Highlights:

• The maturity return has to be made to the SGB investor in value of gold to his account, thus increasing the liability and fiscal burden on the government.
• As from FY27, the government shall work on reduction of the physical gold imports to reduce the debt to Gross Domestic Product ratio.
• More details on the debt-reduction measures will be announced by Finance Minister Nirmala Sitharaman during the FY26 Budget presentation.

Sovereign Gold Bonds (SGB)

• SBG was inaugurated by the government of India on 30th October, 2015.
• A government security that is rated in grams measured by the amount of gold purchased by investors.
• Available by the Reserve Bank of India, on behalf of the Government of India.
• Investable for Individuals, HUFs, Trusts, Universities, and Charitable Institutions.
• Investment limits: Rs.1 gram of gold is the minimum investment to Rs.20 kg in one financial year.
• Tenures: The duration of the bond is considered 8 years with exit options made available in the 5th, 6th, or 7th years.

Read more about SGB

4. Survey on Capital Expenditures (CapEx)

Context:

The National Statistics Office (NSO) is set to release the results of the first private sector capital expenditure (capex) survey in March, as the government nudges the private sector to ramp up investments to drive economic growth.

Highlights:

• The National Statistics Office (NSO) will release the first results from its private sector capital expenditure (capex) survey in March.
• Track survey annual private-sector capex-through-the-collection of projected investments capital expenditure for the two coming years, three years back.
• This survey employs the database of the Ministry of Corporate Affairs.

Private-Sector Capital Expenditure

• Capital Expenditure is a permanent investment made by a company into fixed physical assets for the operation.
• This would include a move in operation or expansion.
• The acquisition of new machinery, the construction or renovation of buildings, vehicles, software systems, or research and development on new intellectual property are some of the examples.
• While RevEx is immediately deductible from taxable income, CapEx isn’t.

5. New RBI Governor: Sanjay Malhotra to replace Shaktikanta Das

Context:

Sanjay Malhotra will replace Shaktikanta Das as the 26th Governor of Reserve Bank of India, according to a notification from the government’s Cabinet Appointments Committee on Monday.

Process of RBI Governor Appointment in India

• This is a political exercise wherein the governor is appointed by the Prime Minister’s Office after looking into the views of the finance ministry and the outgoing governor.
• FSRASC, which is headed by the Cabinet Secretary, recommends the name for appointing a governor.
• In case the governor is not available, the deputy governor nominated by the governor would take over.
• The term of office would be fixed at five years for Governors and Deputy Governors and could also be determined by the discretion of the Government.
• They can be reappointed or given extension.
• Qualifications: The RBI Act did not specify any specific qualifications which was necessary for a Governor; they have been traditionally drawn either from the civil services personnel or from an Economist.
• The salaries and allowances to which the Governors and Deputy Governors shall be entitled should be fixed by the Central Board with the previous sanction of the Central Government.

Agri Business

1. AgriStack Initiative

Context:

As part of the AgriStack initiative, for rolling out digital farm lending in Uttar Pradesh for its eight crore farmers, the state government is currently working with the International Finance Corporation for providing APIs of the state’s land records and farm boundaries to SatSure and a couple of other companies.
Know more about AgriStack initiative?
Goal

• The International Finance Corporation is working towards developing a roadmap for direct digital farm lending to the mixed eight crore farmers.
• Land records and farm boundary APIs provide online lending processes.

SatSure in Farm Lending
SatSure is a space tech-based Bangalore company that uses satellite-based risk scoring to generate farm-as-well-as village-level reports.
• Uses AI algorithms to analyze satellite imagery and identifying crop types.
• Keeping track of changes in farm health and productivity for correlating with the climatic variables.
• Provides loan backing for banking institutions to measure farmers’ income and repayment capacity.
Read more…

2. India’s MGNREGS major contributor to global Nature-based Solutions

Context:

Decent Work in Nature-Based Solutions 2024 Report Executive: The report, a joint effort of ILO, UNEP, and IUCN, supports the UN Decade on Ecosystem Restoration as it is well aligned with Sustainable Development Goals (SDGs).

Launch Event:

• It is launched at the CoP16 of the UN Convention on Biological Diversity (CBD).
• Joint effort under ILO, UNEP, and IUCN.
• It is aligned with the UN Decade on Ecosystem Restoration and supports the Sustainable Development Goals.

Key Findings:

• Global Employment using NbS: 93% to 95% of these jobs remain in Asia-Pacific.
• Employment Distribution: 1.8% of global jobs from NbS.
• Regional Expenditure: That’s 44% from Asia Pacific for NbS expenditure.
• Forward: Development of 20-32 million jobs every year by scaling up investments of around $543 billion annually up to the year 2030 mainly in agriculture and forestry sectors.

Nature-based Solutions (NbS)
Activities that use the natural processes of ecosystems to address societal problems.

• Defining Components: Ecosystem-based Approach, Multi-benefits Dimension, Integration within Global Policies, Climate and Biodiversity Objectives, Developing Skills and Workforce. Mahatma Gandhi National Rural Employment Guarantee Act is a flagship social security scheme of the Government of India that was launched in 2005. It aims primarily at enhancing security in livelihood of rural households.
• The most important objectives are Employment Assurance, Empowerment of the Poor, Inclusive Community, and Environment-related Interventions.

Outcomes of MGNREGS:

• Generation of Employment in Rural Areas, Empowerment to Women, Infrastructure Development in Rural Areas, and Resistance to Climate Change.

Problem Areas in MGNREGS:

• Deficit in implementation: Delayed payments, low quality of work culture.

Know more about MGNREGA?