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Daily Prelims CA Quiz

UPSC Quiz- 2017 : IASbaba’s Daily Current Affairs Quiz [Day 75]

UPSC Quiz- 2017 : IASbaba’s Daily Current Affairs Quiz [Day 75] Archives Q.1) Consider the following statements about ‘Proxima Centauri’ It is the closest star to the Sun It is orbited by the Earth-sized temperate world Proxima b, discovered in 2016 and the closest exoplanet to the solar system Select the correct statements 1 Only 2 Only Both 1 and 2 Neither 1 nor 2 Q.2) Consider the following statements about ‘Tholpavakoothu’ It is a form of shadow puppetry practiced in Karnataka The puppets used are made of leather Select the correct statements 1 Only 2 Only Both 1 and 2 Neither 1 nor 2 Q.3) ‘Blackbuck’ is found in which of the following countries? India Nepal Sri Lanka Select the correct statements 1 and 2 2 and 3 1 and 3 All of the above Q.4) Parambikulam Tiger Reserve is located in which state? Karnataka Kerala Telangana Tamil Nadu Q.5) Which of the following statements is/are correct? The lotus leaf is a hydrophilic material Hydrophobic surfaces are ones with a low surface energy that therefore do not attract water to them Select the correct statements 1 Only 2 Only Both 1 and 2 Neither 1 nor 2 To Download the Solution – Click here All The Best  IASbaba

PIB

IASbaba PIB Weekly : Press Information Bureau – 29th Oct to 5th Nov, 2017

IASbaba Press Information Bureau 29th October to 5th November, 2017 ARCHIVES GS-2 The Government of India and World Bank sign $200 Million Loan Agreement for the Assam Agribusiness and Rural Transformation Project (Topic: Important International institutions, agencies and fora- their structure, mandate; Government policies and interventions for development in various sectors and issues arising out of their design and implementation) Assam is simplifying several regulatory procedures related to doing business, agricultural marketing, and fisheries amongst others. The Project will support the Government of Assam – Facilitate agri-business investments Increase agriculture productivity by strengthening the farming systems, and market access Enable small farm holders produce crops that are resilient to recurrent floods or droughts in the state Raise private sector investments to promote agri-enterprises which will create better job opportunities for the youth in the State Promote market-led production that can deal with the vagaries of climate change - will take advantage of the rapidly changing market, introduce crops that are resilient to climate change, increase production and manage risks for farmers Cluster Approach: The Project will be implemented in over 16 Districts of Assam. Over 500,000 farming households will directly benefit from the Project. At least 30 percent women are expected to participate in project activities. Specific focus will be given to women-led enterprises and their participation in the decision-making process of farmer producer organizations. The focus on geographic clustering of the production base for certain commodities will help agri-enterprises take advantage of existing and future market opportunities that they may not necessarily achieve alone. The cluster approach will allow for combining efforts, making use of synergies, and pooling resources to increase the competitive advantage of these products, while at the same time share the risks involved in introducing improved products or entering previously untapped markets. Successful clusters will also continuously innovate and adapt ‘best practices’ across agricultural value chains. MHA gives a boost to “Make in India” in the field of manufacturing of arms (Topic: Government policies and interventions for development in various sectors and issues arising out of their design and implementation) The Ministry of Home Affairs has liberalised the Arms Rules to boost “Make in India” manufacturing policy of the Government – To promote employment generation in the field of manufacturing of arms and ammunition. To encourage investment in the manufacturing of arms and ammunition and weapon systems as part of the “Make in India” programme. The liberalised rules are expected to encourage the manufacturing activity and facilitate availability of world class weapons to meet the requirement of Armed Forces and Police Forces in sync with country’s defence indigenization programme. Cabinet approves Trade Agreement between India and Ethiopia for strengthening and promoting trade and economic cooperation: The trade Agreement will provide for all necessary measures to encourage trade, economic cooperation, investment and technical co-operation. Signing an Agreement between India and Armenia on cooperation and mutual assistance in customs matters: The Agreement would provide a legal framework for sharing of information and intelligence between the Customs authorities of the two countries and help in the proper application of Customs laws, prevention and investigation of Customs offences and the facilitation of legitimate trade. Ongoing Centrally Sponsored Scheme (State Plans) – Rashtriya Krishi Vikas Yojana (RKVY) as Rashtriya Krishi Vikas Yojana- Remunerative Approaches for Agriculture and Allied sector Rejuvenation (RKVY-RAFTAAR) for three years i.e. 2017-18 to 2019-20: The scheme will incentivize States in enhancing more allocation to Agriculture and Allied Sectors.  This will also strengthen farmer’s efforts through creation of agriculture infrastructure that help in supply of quality inputs, market facilities etc.  This will further promote agri-entrepreneurship and support business models that maximize returns to farmers. Rashtriya Krishi Vikas Yojana (RKVY) Provides considerable flexibility and autonomy to states in planning and executing programmes for incentivizing investment in agriculture and allied sectors. States initiate the process of decentralized planning for agriculture and allied sectors through preparation of District Agriculture Plans (DAPs) and State Agriculture Plan (SAP) based on agro-climatic conditions, availability of appropriate technology and natural resources to ensure accommodation of local needs, cropping pattern, priorities etc. National priorities like Bringing Green Revolution to Eastern India (BGREI), Crop Diversification Program (CDP), Reclamation of Problem Soil (RPS), Foot & Mouth Disease - Control Program (FMD-CP), Saffron Mission, Accelerated Fodder Development Programme, etc. are being implemented through the window of RKVY. GS-3 EESL launches $454 million ‘Creating and Sustaining Markets for Energy Efficiency’ project in partnership with the GEF (Topic: Infrastructure: Energy) What: Recognizing India’s efforts towards a low emission-economy and focusing on energy efficiency programmes, the Global Environment Facility (GEF) has now partnered with Energy Efficiency Services Limited (EESL), under Ministry of Power, for the project ‘Creating and Sustaining Markets for Energy Efficiency’ The project will receive a composite funding of $454 million comprised of the GEF grant of $20 million and co-financing of $434 million in the form of loans and equity, including a $200 million loan from the Asian Development Bank (ADB). EESL has proposed Energy Efficiency Revolving Fund (EERF) for sustainable funding mechanism of energy efficiency projects in the country. Will support the ‘proof of concept’ investments for the new technologies of super-efficient ceiling fans, tri-generation technologies & smart grid-applications and ultimately scaling up energy efficiency financing and programme development to help cover initial investment costs of identified energy efficiency programmes like street lighting, domestic lighting, five-star rated ceiling fans and agricultural pumps, in the country. This unique model will help in addressing the upfront risks of new technologies. Further, the accrued savings from these technologies can then be used to finance additional projects, which would allow capital to revolve as a sustainable funding mechanism. The GEF project further brings together many technical and financing partners including United Nations Environment (UN Environment), Asian Development Bank (ADB) and Kreditanstalt für Wiederaufbau (KfW) which aims to mitigate 60 million tons of CO2 eq (carbon dioxide equivalent), that will enable a total direct energy savings of 38.3 million GJ by 2022 and 137.5 million GJ by 2032. (1 GJ = 277.778 kWh) Note: By 2030, India is committed to achieve 40% of the installed capacity based on clean energy sources. GEF is an international partnership of 183 countries, international institutions, civil society organizations and the private sector that addresses global environmental issues. The funding announcement was made at the launch of the GEF-6 fund which supports two projects – ‘Creating Markets for Energy Efficiency’ and ‘District Energy in Cities’. Please Note: 150th birth anniversary of Sister Nivedita Sister Nivedita’s original name was Margaret Noble; though born in Ireland, she became an Indian nation builder. She was a pioneer in girls’ education in India and in providing health services to the poor. Two excerpts from Swami Vivekananda’s letters to Sister Nivedita, written in Sanskrit – In the first letter Swamiji tells Sister Nivedita that his life’s mantra is: वज्रादपि कठोराणि मृदूनि कुसुमादपि – This translates to “Tougher than rocks; more tender than flowers”. It points to Swamiji’s ability to balance the idealism of his work with the practical aspects of everyday life. In the second letter, Swamiji impresses upon Sister Nivedita that: नहि कल्याण कृत्कश्चित् दुर्गतिं तात गच्छति Or: “A person who does good to others, never meets a bad end …” 2. The Soundarya Lahari is a set of shlokas composed by Adi Shankaracharya 3. For every one additional year of education for women in reproductive age, child mortality is reduced by a huge 9.50 per cent. 4. India’s food consumption is currently valued at US $370 billion. It is expected to reach $1 trillion by 2025, in less than a decade. 5. Indian Women's hockey team wins Asia Cup 2017. 6. Mission 11 Million (MXIM): Football outreach program 7. Bahudha approach – Emphasizes the need for a dialogue to promote a harmonious and peaceful living. Peace is an essential pre-requisite for progress of mankind, especially when the world is witnessing an increasing number of conflicts. In the context of the rise of terrorism and religious fundamentalism, which are threatening world peace like never before, the Bahudha approach is a good way to resolve even the most intractable problems. 8. Launch of MSME Delayed Payment Portal – MSME Samadhaan: To empower micro and small entrepreneurs across the country to directly register their cases relating to delayed payments by Central Ministries/Departments/CPSEs/State Governments. The portal will greatly facilitate the monitoring of the delayed payment in a more effective manner. The information on the portal will be available in public domain, thus exerting moral pressure on the defaulting organisations. The MSEs will also be empowered to access the portal and monitor their cases. 9. India’s rank has risen to 100 in the latest report compared to 130 in the Doing Business Report (by World Bank), 2017. 10. Lauh Purush – Sardar Vallabhbhai Patel 11. Clubfoot is one of the most common orthopaedic birth defects, and can cause permanent disability if not treated early. This affects the child’s mobility and confidence. Inevitably, education and schooling suffer – and the child cannot fulfil his or her potential. It is estimated that over 50,000 children are born annually in India with clubfoot. The exact reasons for this congenital disability are not fully known. In India the burden of disability affects more than 10 million people. The differently-abled or Divyang as we call them deserve equal opportunities in all avenues of life. Mainstreaming their social and professional experience is a commitment for all of us. 12. 21st World Congress of Mental Health: Organised by the World Federation for Mental Health in partnership with Caring Foundation and other institutions Our National Mental Health Survey 2016 found that close to 14 per cent of India’s population required active mental health interventions. India’s National Mental Health Programme is building 22 centres of excellence in the field of mental health. In parallel, the District Mental Health Programme has already covered 517 of the approximately 650 districts in India  13. “PRABAL DOSTYK – 2017” between the Indian Army and the Kazakhstan Army, aimed at enhancing the military ties between the two countries as also at achieving interoperability between the two armies. 14. Deen Dayal SPARSH Yojana: Under the scheme of SPARSH (Scholarship for Promotion of Aptitude & Research in Stamps as a Hobby), it is proposed to award annual scholarships to children of Standard VI to IX having good academic record and also pursuing Philately as a hobby through a competitive selection process in all postal circles. Philately is the hobby of collection and study of Postage stamps.

RSTV Video

RSTV- The Big Picture : Towards a Foolproof Goods and Services Tax

Towards a Foolproof Goods and Services Tax Archives TOPIC: General Studies 3 Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Inclusive growth and issues arising from it. The GST Council met again and before time to revisit compliance rule and discuss structural changes in the new national tax regime, acting on feedback and complaints from business. The review comes amidst the way GST has been implemented. Most prominent among them being GSTN- the portal is finding to be difficult with registrations and return filing. So there is considerable anxiousness in mind of tax payers as to how to go about compliances. Reporting each and every transaction and three returns every month is a challenge as most of the businesses are small. How to have a simpler GST regime? Economists have been in favour of GST- good and simple tax. The simplicity has somehow been lost while complying with GST. The government should not do everything at once. The change is impacting the economy, a large part of which is highly unorganised. They have never paid taxes either legally as they were evading it or they were not taxed. For instance textiles. The logic was if yarn is taxed, there is nothing to tax downstream. This was the idea of simplification. The textile traders are now agitated as earlier they just paid tax on yarn. Also, a large number of people in trading system were not involved in highly sophisticated system of tax-assessment, payment etc. They were not fully computerised in their own accounting. So compliance through a fully automated route with too many deadlines made it difficult for them to run a business as their priority. The tax structure should be made less complicated. It involves simplifying the tax structure and bring in the goods and services that are left out. The government is decentralising tax compliance. For this, the business system need to be sophisticated. The B2B transactions are expected to match each other and then technology should be applied. If turnover less than 75 lakhs, traders can compound tax and pay it. But 75 lakhs on a 10% margin is 7.5 lakhs. So, a businessman which earns roughly 8 lakhs when has to go through a complicated system as this, hire accountants, regularly check for compliances etc. it becomes cumbersome. The technology is the key interface between trader, exporter, tax payer and government. When the GSTN portal was crashing under the pressure, the people involved in setting up the technological platform and government should have thought it through to take this kind of pressure and intensity. Issues with GST Reverse charge mechanism- It means that it is liability of receiver of goods or services to pay the tax instead of supplier. HSN code- it is coding of commodities which have been processed by various people Filing- the invoices/transactions not uploaded by opposite part results in losing the ITC. As well as crashing of portal while filing return results in unsolicited penalties. Tax slab- there should have been lesser slabs. When looked at global GST regimes, there are lesser slabs, mostly one tax rate with two different rates for demerit goods and essential goods. India is expected to go to that status gradually where rates will get rationalised. Conclusion This complicated structure has emerged as government wanted revenue neutrality, not just aggregate but for each state and each product. The 28% GST rate creates a large return problem. Earlier, the manufacturing states used to pay excise duty and the trader used to sell without the bill. This evaded the sales tax payment. Now, if the product is sold without bill, there is huge tax evasion as even excise duty is not paid. This process needs to be accounted for while making GST more simplified. The stricter deadlines can be counterproductive. Instead, the people have to be made realised what is beneficial to them in long term. Moreover, the traders could have been consulted a little bit more so that their opinions would have been atleast taken note of. Not involving them entirely means that they can outrightly oppose a good idea. The bureaucracy and people behind GST need not get stuck on what decisions made earlier. They should change as per need to bring in more compliances over a period of time. Connecting the dots: The first quarter of GST implementation has provided some valuable insights to the government. Critically examine these insights.

IASbaba’s Daily Current Affairs – 6th Nov 2017

IASbaba’s Daily Current Affairs – 6th Nov 2017 Archives NATIONAL/ECONOMY TOPIC: General Studies 2: Government policies and interventions for development in various sectors and issues arising out of their design and implementation. General Studies 3: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Expanding agricultural exports In news: The government has expressed its resolve to expand agricultural exports. Benefits of increase in agri-exports: Increase the country’s export basket. Augment farmers’ incomes and ameliorate farm distress. Export-Import trends: In general, both agri-exports and imports have increased substantially since 2004-05, reflecting the increasing integration of Indian agriculture with global markets. Agri-trade increased from $14 billion to $59.2 billion between 2004-05 and 2016-17. As a share of the agri-GDP, the contribution of this trade increased from 11.1 per cent in 2004-05 to 16.7 per cent in 2016-17. Agri-exports suffered primarily due to the significant fall in exports of cereals (especially wheat and maize), cotton, oilseeds and, to some extent, bovine meat. This, in turn, was largely due to a steep fall in global prices and restrictive export policies. The FAO food price index fell from 209.8 in 2013 to 161.5 in 2016. Export policies for pulses, oilseeds/edible oils and several vegetables were restrictive. Agricultural imports have been rising since 2004-05. Edible oils, pulses, and fruits, nuts, vegetables being the major produce. How to increase agricultural exports? A paradigm shift in policy-making from being obsessively consumer-oriented to according greater priority to farmers’ interests is required. Identifying agri-commodities that can help boost the agri-trade surplus. Estimates show that India is export competitive in almost 70 per cent of agricultural commodities, non-tradable (that is our prices are between import parity and export parity prices) in about 10-15 per cent commodities, and import competitive in the remaining 15-20 per cent commodities. On the exports front, India is relatively competitive in cereals, especially rice and wheat and maize, and, at times, oilseeds, especially groundnuts and oil meals. The country can also be competitive in groundnut and mustard oil, provided there is an open and stable export policy. India has also been the world’s second largest exporter of cotton. The country has a great potential to export fish and seafood, bovine meat, and fruits, nuts and vegetables. These are the commodities to focus on in order to stimulate agri-exports. Building global value-chains for some important agri-commodities in which the country has a comparative advantage. This would require infrastructure and institutional support — connecting export houses directly to farmer producer organisations (FPOs), sidestepping the APMC-regulated mandis, removing stocking limits and trading restrictions. Bringing in the required structural reforms in agriculture. A special package to support value-chains through infrastructural investments (in assaying, grading, packaging and storing facilities), which will also create jobs in rural areas, or assistance in adhering to sanitary and phytosanitary standards would make export-oriented value-chains more resilient towards any price shocks. India needs to adopt an open, stable and reliable export policy. Abrupt export bans, high minimum export prices to restrict exports, or other quantitative restrictions on pulses, edible oils — even on vegetables and cereals at times — must give way to a policy that does not put any fetters on exports. Liberalisation of factor markets, especially land-lease markets, would also help in building more efficient and reliable export value-chains. Over-regulated land-lease markets have kept landholdings small and forced informal tenancies to flourish rendering them incapable of mobilising large-scale capital. Long land-lease arrangements can facilitate private investments in building export-oriented global value-chains, generating rural non-farm employment and enhancing farmers’ incomes. Conclusion: It is time for the government to steer a “farm-to-foreign” strategy, improve agri-trade surpluses by promoting agri-exports. This will most importantly help create more jobs and bring prosperity to rural areas. Connecting the dots: Given the importance of expanded agricultural exports, it is time for the government to steer a “farm-to-foreign” strategy and improve agri-trade surpluses by promoting agri-exports. Discuss. INTERNATIONAL TOPIC:General Studies 2: India and its International relations. Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests. Effect of policies and politics of developed and developing countries on India’s interests, Indian diaspora. Engaging big powers in South Asia In news: India has accepted an invitation to join the Japan-proposed, U.S.-endorsed plan for a “Quadrilateral” grouping including Australia to provide alternative debt financing for countries in the Indo-Pacific. The idea of quadrilateral dialogue with India, Japan and Australia was proposed by US. Significant turn in policy: India is ready to cooperate with other countries into what India has always fiercely guarded Indo-Pacific sphere of activity. However, there are examples of India working with other nations in the region like- working with the U.S. on transmission lines in Nepal or with Japan on a liquefied natural gas pipeline in Sri Lanka. Still, India has accepted that it requires “other parties” in the neighbourhood, even as it seeks to counter the influence of China and its Belt and Road Initiative. Why India is not able to handle the situation in Indo-Pacific independently? India's needs clashing with those of neighbors: As a growing economy with ambitious domestic targets, India’s own needs often clash with those of its neighbours. More connectivity will eventually mean more competition, whether it is for trade, water resources, or energy. Take, for example, the case of Bhutan, which is working, with India’s assistance, on its own goal of producing 10,000 MW of hydropower by 2020. There have been reports of Bhutan’s external debt rising because of delays in hydropower projects owing construction delays, mainly due to Indian construction issues. Despite several pleas to the Ministries of External Affairs and Power, the guidelines issued by India, which put severe restrictions on Bhutanese companies selling power, and on allowing them access to the power exchange with Bangladesh, have not been revised. Projects not taken seriously: Another problem is what one diplomat in the region calls ‘India’s big game hunting attitude’: “India chases its neighbours to cooperate on various projects, but once the project is finalised, the implementation is not taken seriously. Over the past decade, India passed up offers to build the port in Hambantota, Colombo, and Kankesanthurai, despite Sri Lanka’s pressing need for infrastructure. With the U.S. and other Western countries also taking strident positions over human rights issues and the reconciliation process, Chinese companies stepped in and won these projects. New Delhi has changed its position on Hambantota several times, going from initial apathy, to disapproval of the Chinese interest, to telling that the project would not be viable. Contradictory ideas while tackling political issues in its region: India falls somewhere between the U.S., which has openly championed concerns over ‘democratic values’ and human rights in Sri Lanka, Maldives and Bangladesh, and the approach of China, which is to turn a blind eye to all but business and strategic interests. In Nepal, India lost out to China when it allowed a five-month-long blockade at the border, calling for a more inclusive constitution to be implemented by Kathmandu. India reversed its stand in Rohingya issue case, leading to the sense that it is unsure of its next steps when dealing with neighbors on political issues. Conclusion: While the government’s new plan to involve the U.S. and Japan in development projects in South Asia will yield the necessary finances, it will come at the cost of India’s leverage in its own backyard. The emergence of new players like the U.S., Europe and Japan has only increased multiple regional rivalries in the region.  Thus, the government must be cautious about bringing big powers into South Asia Connecting the dots: The government is planning to involve US, Japan and Australia in the development projects in South Asia. Discuss the prospects and the issues involved. While India seeks to counter the influence of China and its Belt and Road Initiative, it is not able to handle the situation in Indo-Pacific independently. Critically analyze. MUST READ Seize the opportunity The Hindu Marooned once more The Hindu The new oil game Indian Express Communicating the reforms instituted Livemint Eyes in the sky Business Line Addressing security issues in e-money Business Line  

Daily Prelims CA Quiz

UPSC Quiz- 2017 : IASbaba’s Daily Current Affairs Quiz [Day 74]

UPSC Quiz- 2017 : IASbaba’s Daily Current Affairs Quiz [Day 74] Archives Q.1) Which of the following is/are correctly matched?                      Straits                                             Location Strait of Hormuz                             Iran and UAE Strait of Malacca                             Malaysia and Indonesia Select the correct code 1 Only 2 Only Both 1 and 2 Neither 1 nor 2  Q.2) Recently, the ‘Quadrilateral’ grouping was in news. Which of the following countries is not a part of it? India Australia Japan South Africa Q.3) Consider the following statements about National Financial Reporting Authority (NFRA) The Companies Act 2013 provides for setting up NFRA NFRA will set accounting and auditing standards, monitor and enforce compliance with the standards, and oversee the accounting profession’s record of ensuring compliance Select the correct statements 1 Only 2 Only Both 1 and 2 Neither 1 nor 2 Q.4) “InsuResilience” is associated with BRICS G7 G4 Climate Vulnerable Forum (CVF) Q.5) Consider the following statements about Conference of the Parties (COP) The COP is the supreme decision-making body of the United Nations Framework Convention on Climate Change (UNFCC) Germany is the designated nation to run the COP23 Select the correct statements 1 Only 2 Only Both 1 and 2 Neither 1 nor 2 To Download the Solution – Click here All The Best  IASbaba

MindMaps

IASbaba’s MINDMAP : Issue – Inclusive Growth

IASbaba’s MINDMAP : Issue – Inclusive Growth Archives NOTE – Instructions to download Mind Maps/Images Right Click on the image and ‘Open in a new tab’ Remove/Delete the resolution part from the URl. Eg. “-1024×869” and Press Enter/Load Again Afterwards the URL will look something like this – “iasbaba.com/…./…/..-IASbaba.jpg” Right Click and Save As/Download (You’ll get the maximum resolution)

RSTV Video

RSTV- The Big Picture : India-Bhutan Ties post Doklam

India-Bhutan Ties post Doklam Archives TOPIC: General Studies 3 India and its neighbourhood- relations. Bilateral, regional and global groupings and agreements involving India and/or affecting India's interests Background India and Bhutan talked recently at top levels post the Doklam stand-off between India and China. The discussion was held by Indian foreign secretary with Bhutan’s PM as well as monarch on range of bilateral relations including implementation of the ongoing government of India’s assisted projects- trade and economic ties, hydropower cooperation and people to people contacts. Post doklam, certain things needed to be clarified between India and Bhutan. The problem in Doklam was about legitimacy of Indian intervention to counter Chinese move. But Bhutan was not very keen in coming forthright about India helping it to safeguard its territories. So India wanted to talk about it. The Doklam standoff was military standoff. There was need of diplomatic conversation with Bhutan as the main relationship between both countries is cultural and deep political trust. India-Bhutan: Recent relationship Demonetisation, GST have impacted on the ground in the Indo-Bhutanese relationship as well as with Nepal. GST has created a lot on confusion within Bhutan in terms of trade. The economy is small and largely dependent on Indian export. So these issues were required to be discussed. Bhutan remains India’s closest partners. Apart from India, Bhutan is the only country that stayed away from OBOR, Bhutan is not part of china’s infrastructure bank. India-Bhutan have closer ties on UN issues. At the same time, the way India sees Bhutan through a Chinese prism has to change to an extent. The Bhutanese people no longer consider themselves as India’s taken for granted partner. For instance, India has to act more responsibly on hydropower cooperation. Bhutan has perhaps only major trade relations with India. So India has to deal in better way and put extra effort to maintain the relationship. Need to revisit Bhutan policy India has to centrally rebuild its foreign policy towards Bhutan along different structure. Demonetisation and GST have hurt neighbouring countries where Indian currencies is a legal tender. The Bhutanese want to up the revenue from the hydro power plants to generate electricity for Bhutanese people. It is a natural resource that they are helping to exploit and they benefit hugely from it. But they want it to be revenue rated appropriately. Hence, the old fashioned diplomacy will not work anymore. The make in India programme is going to impinge on the economy of Bhutan and Nepal and other small economies countries in South Asia. For instance, the small companies in Bhutan will be finished if their sensitivity, productivity and industrial production is not taken into consideration. The economic policy reforms done in India should me made feasible for other neighbouring countries too by giving way outs with the difficult situations arising post structural changes. A boon Doklam was blessing in disguise, India learnt some lesson in military and security front. It also helped India to take precaution on what new things can be done to maintain relationship with Bhutan. The interesting part is that the relation between both countries has always been driven by Bhutanese and not by India. However, this in the last couple of years since 2013 has not been same. Only the top political and diplomatic people should be allowed to handle the relationship. No third part interference (military) should be allowed in the relationship. Address two existing issues- With regards to GST, India has to assist 4500 crores in grants to Bhutan. Bhutan’s trade deficit is 3200 crore with 90% of trade deficit with India. It is not a sustainable position if India doesn’t address such trade deficit. There is commitment from India to buy 10000MW of power and the Bhutanese has been requesting India to let them take part in primary market. But India says that only companies which has 51% stake held by Indians can take part in this. India has to allow Bhutan to prosper too through more revenues through power. Closest ally should be responded China is continuously trying to assert itself into the region. The people within Bhutanese government and their representative assembly are advocating getting nearer to china to increase the leverage with India. Another aspect to sustain Bhutanese economy through hydropower diplomacy. That is if the Bhutanese are happy with the arrangement of selling hydropower to India, it could be the model for mahakali and other rivers in Nepal. The Bhutanese have benefited, they have the highest per capita income of all south Asian countries. But equally they don’t want to be treated as second to India. India should not exercise control democracy in Bhutan. India is in in-charge of conduct of Bhutanese foreign affairs. This puts greater weight on India. India should not always think of its interest only. Chinese for many years have tried to distance Bhutan from India offering all kinds of inducements- infrastructure projects, connectivity. These is found to be attractive by many yet they have resisted. The degree of friendship they feel for India and sensitivity to India’s concerns is showed. So India has to consider as a closest ally not just in region but in world. Conclusion The Bhutan relation with china is through India. Now there is a trust deficit between Indian and Bhutanese diplomats as well as military level, it would dent the strong friendship both countries share. If India has trained the Bhutanese army, then they have to trust them in safeguarding their territories vis a vis china. Also, India can consult with Bhutan on India’s national security that doesn’t concern Bhutan. This will make them feel involved. India can take Bhutanese views on India’s relationship with Nepal, Pakistan, china and other countries in Indian Ocean region. They are after all the part of Indian military policy matrix. This way the Bhutanese government will feel that they have a stake in India’s well being just as India has it in Bhutanese well being. Connecting the dots: Bhutan is India’s most trusted partner but it shouldn’t be taken for granted. Critically analyse relation between both countries.

RSTV Video

RSTV- The Big Picture : How RBI Fixes Interest Rates? Why call for Cuts?

How RBI Fixes Interest Rates? Why call for Cuts? Archives TOPIC: General Studies 3 Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. In news: RBI recently kept its key lending rate, the repo rate unchanged at 6% dashing hopes for lower borrowing costs of households. The 6 member Monetary Policy Committee headed by RBI Governor kept one eye firmly by rising inflation that is inching closer towards RBI’s 4% threshold level. In August, MPC had recommended 25 basis point cut to 6%. More cut was asked to revive investments for spending and aid a turnaround in broader economies growth that has slumped to 13 quarter low to 5.7% in April-June. Reason for RBI’s decision RBI is answerable for only one thing- Inflation. If it goes beyond 4%, it will have to explain to the country and parliament. Food inflation is okay and crude prices seem to have stabilized. However, they also revise the growth forecast from 7.3% to 6.7%. So here is a situation where MPC is telling that between growth and inflation, they will only worry about inflation. Manufacturing growth rate is 20 quarters below. RBI has not reduced growth figures much. This means in coming quarters, growth can happen more. Inflation can increase upto 4.2%-4.6%. This is worrying factor and thus not reduced the repo rate. If the manufacturing sector and industrial sector has to be revived, then there is need of reduced repo rate. However, ease of doing business is fine, but the cost of business must be also rationalized. Competitors are growing and exports are also increasing- Brazil, Indonesia, Malaysia, South korea are going in export trajectory. India is failing behind due to high cost of business and ease of doing business. Lower policy rates The policy rates are down to historic low of 6%. This is not high in Indian economic conditions. The real interest is down to 1.5 percentage points. This is not desirable as required is always 2%. The low interest rates applies to both savers as well as investors. In the present situation, where low interest rate is desired, it cannot be so due to difficult social and economic conditions facing vast majority of people. Post demonetization, the funds are getting channelized through mutual funds into stock markets. Apart from it, there are no avenues for savings. It’s a major disincentive as savings rates are down. Why RBI worried about inflation? Due to fiscal policy slippages that are anticipated. The economy is running on one engine of government investment. The scope is not large for growth on this path. Also, the state governments get into competitive spree as elections approach to implement pay commission recommendation for their staff. The state finances are not as good as they looked before. So the states would be landing up borrowing. The competitive populism in terms of loan waiver. These things have contributed in closing doors for policy rate reduction. In august they forecasted inflation from 3.5 to 4.5%. Now it is 4.2% to 4.6%. Where does this one hundred basis point increase come from? In the first half of 2017-18, the assumption of oil prices was 50$ per barrel. Now it is 55$. So the global oil prices are fed into domestic inflation. Monsoon has been 5% below normal. Earlier it was above normal or normal monsoon. Fiscal situation- current forecast is 3.2% of GDP. However the number of downside risk to fiscal slippages have increased. These are three things impinging upon inflation. Why only inflation targeting by RBI? The central government has told the RBI to be inflation targeting institution. Monetary policy framework agreement should have put both inflation and investment or credit growth as two key factors and calibrate it so that when RBI is worried about growth, it focuses on growth and when worried about inflation, more focus on that. Inflation targeting is not being discussed because of the trap the economy and policy makers are into. The trap is whether the headline cpi inflation is going to increase when half of it is not under their control, as it is dependent on supply side factors. To get out of it, the credibility has to be damaged. Two key takeways from monetary policy are: Inflation is going up Growth is coming down If there is a high inflation and low growth scenario ahead, it is difficult for policy makers to navigate. The tradeoff between growth and inflation is not an artificial one. Both are complementary. The good economic growth is not positive unless macroeconomic policies are under control. Inflation price stability is an essential condition of growth. Thus, monetary and fiscal policies should be targeting inflation because that is growth complementary. Way forward- Growth should come from MCLR is not working well. It is not effective to transmit the reduction by RBI in repo rate. It should be re-worked. Focus on stalled projects. The infrastructure is not getting that much pace. It should help competitors increase their place in market place. Reviving manufacturing sector- focus on MSMEs and ease of doing business. It helps to increase growth number in industrial sector and overall growth trajectory. Economy is facing slowdown. Price stability is good for growth and vice-versa. There is difference between MCLR faced by borrowers and inflation. The global economy activity has strengthened but the Indian economic story is not the same. It is because there is no driver for investment. Hence, the demand is not expected to be boosted. Monetary tightening switched demand and in addition, demonetization accentuated it as all money went to banks. From banks, nobody is borrowing. So money is not coming out. Hence, private investments should be encouraged and credit lending should increase to give the much needed nudge to economic growth. Connecting the dots: RBI is just an inflation targeting institution. Do you agree with the statement? Comment.

Motivational Articles

Creative Guidance – How is this similar to that – Inspirational & Educative Articles

How is this similar to that? When we seek to understand the fundamental building blocks of our education system, we will come to realize that it is all based on a single idea of searching for what is different. Our whole schooling and education system is based on identifying and naming different things. What begins as a simple classification for the sake of understanding things becomes a real dividing factor. Existentially a tree is not divided into branches, leaves, fruits and flowers; every part of the tree is the tree. We begin to divide the tree in order to understand it and eventually make it a consortium of different parts. This is how we have divided the whole world. The more educated you are, the more divided your world is. Knowledge is simply a process of breaking things down; it has its uses but it changes the basic rule of what is life and who we are. Quest for knowledge has isolated man from everything around him. He is more sad and miserable now than ever before. Children are taught to seek and identify different things. We all remember how we had to identify different parts of our body; eyes, nose, skin, hands and legs. This is how it begins. When a child is put on a path of seeking and identifying different things, he/she continues on that path forever, eventually dividing the whole world. What we fail to teach a child is that all our divisions are only for the sake of convenience, in reality existence is not divided; in reality everything is one. The message of oneness is probably the most important thing that is missing in our world. This is the reason for our misunderstandings, anger, jealousy and violence. A part of the blame for violence in the world has to be taken by our education system that does not teach us the fundamentals of oneness. Children should be taught how to identify similar things. For example they should be made to seek and question the similarities between different things by encouraging them to ask questions like ‘Name 10 things that are similar between a dog and a tree’ Just by answering a simple question like this, you will begin to see how similar we are to everything around us. Our differences are only on the surface; scratch the surface and you will see that the stream of life flowing through all of us and everything around us is the same. We are all nourished by the same life force. Deep down we are all one. Love, compassion and kindness come naturally to human beings if they are not blocked by an attitude to divide everything. When we see ourselves as a part of the same larger whole, it is extremely easy to be responsible, loving and caring. Knowledge should not just be about dividing things; it should also be about connecting things. The most important question we need to introduce into our society and our lives is ‘How is this similar to that?’  The articles are a copyright of The Ahamo Movement and IASBABA