Flash Cards

Day#23 Current Affairs Flash Cards [PRELIMS 2020]

African Continental Free Trade Area (AfCFTA);Kaleshwaram Lift Irrigation Project; River Godavari; India’s FDI inflow; Growth in Manufacturing Sector; ‘Indian Nuclear Insurance Pool (INIP)’; Bali Fintech Agenda;
By IASToppers
August 20, 2019

 

 

The Bali Fintech Agenda is jointly developed by?

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Answer:

  • The International Monetary Fund (IMF) and the World Bank staff have developed the Bali Fintech Agenda.

Enrich Your Learning:

Bali Fintech Agenda:

  • The Agenda brings together and advances key issues for policymakers and the international community to consider as individual countries formulate their policy approaches.
  • It distills these considerations into 12 elements arising from the experiences of member countries.
  • The Agenda offers a framework for the consideration of high-level issues by individual member countries, including in their own domestic policy discussions.
  • It does not represent the work program of the IMF or the World Bank, nor does it aim to provide specific guidance or policy advice.
  • The Agenda will help guide the focus of IMF and World Bank staff in their work on fintech issues within their expertise and mandate, inform their dialogue with national authorities, and help shape their contributions to the work of the standard-setting bodies and other relevant international institutions on fintech issues.
  • Implications for the work programs of the IMF and World Bank will be developed and presented to their respective Executive Boards for guidance as the nature and scope of the membership’s needs–in response to the Bali Fintech Agenda—become clearer.

Background:

What is Fintech?

  • Fintech is used to describe new tech that seeks to improve and automate the delivery and use of financial services.
  • Fintech, the word, is a combination of “financial technology”.
  • At its core, fintech is utilized to help companies, business owners and consumers better manage their financial operations, processes and lives by utilizing specialized software and algorithms that are used on computers and, increasingly, smartphones.
  • When fintech emerged in the 21st Century, the term was initially applied to technology employed at the back-end systems of established financial institutions.
  • Since then, however, there has been a shift to more consumer-oriented services and therefore a more consumer-oriented definition.
  • Fintech has expanded to include any technological innovation in – and automation of – the financial sector, including advances in financial literacy, advice and education, as well as streamlining of wealth management, lending and borrowing, retail banking, fundraising, money transfers/payments, investment management and more.
  • Fintech also includes the development and use of crypto-currencies such as bitcoin.
  • That segment of fintech may see the most headlines, the big money still lies in the traditional global banking industry and its multi-trillion-dollar market capitalization.

 

 

What is the main objective of the African Continental Free Trade Area (AfCFTA)?

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Answer:

  • The main objective of the African Continental Free Trade Area (AfCFTA) is to create a single continental market for goods and services, with free movement of business persons and investments, and thus pave the way for accelerating the establishment of the Continental Customs Union and the African customs union.

Enrich Your Learning:

African Continental Free Trade Area (AfCFTA):

  • The African Continental Free Trade Area (AfCFTA) is a planned free trade area, outlined in the African Continental Free Trade Agreement among 49 of the 55 African Union nations.
  • If the agreement is ratified, the free-trade area will be the largest in the world in terms of participating countries since the formation of the World Trade Organization.
  • The agreement was brokered by the African Union (AU) and was signed on by 44 of its 55 member states in Kigali, Rwanda in March, 2018.
  • The agreement initially requires members to remove tariffs from 90% of goods, allowing free access to commodities, goods, and services across the continent.
  • The United Nations Economic Commission for Africa estimates that the agreement will boost intra-African trade by 52 percent by 2022.
  • The proposal will come into force after ratification by 22 of the signatory states.

Objectives of the CFTA:

  • Expand intra African trade through better harmonization and coordination of trade liberalization and facilitation regimes and instruments across RECs and across Africa in general.
  • Resolve the challenges of multiple and overlapping memberships and expedite the regional and continental integration processes.
  • Enhance competitiveness at the industry and enterprise level through exploiting opportunities for scale production, continental market access and better reallocation of resources.

AfCFTA secretariat:

  • The secretariat will be responsible for coordinating the implementation of the agreement and shall be an autonomous body within the AU system.
  • Though it will have independent legal personality, it shall work closely with the AU Commission and receive its budget from the AU.
  • The Council of Ministers responsible for trade will decide on the location of the headquarter, structure, role and responsibilities.

 

 

When was the Indian Nuclear Insurance Pool launched? and what was the objective behind its launch?

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Answer & Enrich Your Learning:

‘Indian Nuclear Insurance Pool (INIP)’

  • Government of India have launched the Indian Nuclear Insurance Pool (INIP) with a capacity of ₹1500 crore to provide insurance to cover the liability as prescribed under Civil Liability for Nuclear Damage (CLND) Act, 2010.
  • The idea behind the formation of such a pool was mooted in early 2013. But it was created on 12th June, 2015.
  • The poll has addressed issues related to Civil Liability for Nuclear Damage (CLND) Act and had facilitated commencement of work in setting up new nuclear power projects.
  • New India Assurance issues the policy under the pool and also deals with management of cover to the operators and suppliers, on behalf of all direct insurance companies participating in the pool.

Present nuclear power capacity

  • The nuclear power capacity at present is 6780 MW comprising of 22 reactors.
  • There are 9 reactors with a capacity of 6700 MW under construction.
  • On their completion, the installed nuclear capacity is expected to reach 8180 MW by 2020 and 22480 MW by 2031.

 

 

In the past few years, India’s FDI inflow is decreasing. Right OR Wrong?

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Answer:

Wrong.

Right Statement:

  • India’s total FDI inflow is increasing year by year.

Enrich Your Learning:

Violation of FDI Norms

  • Under Foreign Exchange Management Act, 1999 (FEMA) for alleged violation of FDI norms, an investigation is being conducted.
  • It has been necessary for the Government to put an enabling and investor friendly FDI policy, as the onus of compliance with the FDI norms lies on the entity that is the recipient of FDI.
  • The intent is to make the FDI policy more investor friendly and remove the policy bottlenecks. Some factors still hinder investment inflows into the country.

A look on India’s FDI inflow:

  • FDI inflows have been going up each year, as against any of the previous years:

iastoppers 2

  • The total FDI inflow is increasing year by year as seen in the above table.
  • In first two years (2016-17 and 2017-18), there is a small rise in inflow. After that there is a notable increase of almost 4 billion USD in FDI inflow.
  • In present financial year 2019-20, there is 6.95 billion USD inflow is observed up to April.

Growth in Manufacturing Sector

Growth of India’s Manufacturing Gross Value Added (GVA) and Gross Domestic Product (GDP) at constant (2011-12) prices:

  • As the growth of manufacturing sector and Gross Domestic Product is observed from 2005-06 to 2018-19, it can be seen that the growth of manufacturing in initial five years is constantly higher than that of GDP.
  • From the years 2005-06 to 2009-10, the above situation was observed.
  • For the next four years, till 2013-14, GDP was higher than in manufacturing accept the year 2012-13 when both the measures were same.
  • If the growth is observed for last five years, there was notable increase of almost 2 percent in manufacturing in 2015-16. GDP has also slightly increased during this year.
  • During 2016-17 and 2017-18, both Indian’s manufacturing and GDP have been decreased while in 2018-19 GDP is decreased and manufacturing is increased as compare to previous year.
  • Both the measures show approx. same percentage of growth such as 6.9 and 6.8 for manufacturing and GDP respectively in 2018-19.

Share of Manufacturing GVA in GDP at constant prices (2011-12)

  • Latest estimates of GDP by National Statistical Office, the share of GVA of manufacturing sector in GDP at constant prices at 2011-12 for the last three years is as follows:

iastopper 23

 

Government’s steps to boost manufacturing and economic growth:

  • By ‘Make in India’ programme, the government aims at making India a global hub for manufacturing, research and innovation and an integral part of the global supply chain.
  • ‘Startup India’ is to boost domestic manufacturing in India.
  • ‘Ease of Doing Business’, Modified Industrial Infrastructure Upgradation Scheme, Business Reform Action Plan and Intellectual Property Rights (IPR) Policy are the another schemes launched by government as efforts to boost Indian economy.
  • Also the procedures and policy for FDI have been simplified and liberalized.

 

 

Kaleshwaram Lift Irrigation Project is a multi-purpose irrigation project being built on which Indian river?

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Answer:

Recently, Telangana government launched a project named ‘Kaleshwaram irrigation project’ on the river Godavari.

Enrich Your Learning:

River Godavari

  • The river Godavari is the largest of the peninsular rivers of India. The river is known as ‘Dakshin Ganga’.
  • It ranks as the second longest river in the country (after the Ganges). Godavari is one of the sacred rivers in India.

Route

  • The river originates from near Trimbak in Nashik District of Maharashtra. After that the river runs towards the east, traversing the Deccan Plateau.
  • In the end, the river empties into the Bay of Bengal at Narasapuram in West Godavari district, Andhra Pradesh.
  • The Krishna Godavari catchment area is one of the principal nesting locations of the imperiled Olive Ridley Turtle.

Tributaries

  • Major tributaries of the river are as follows:
    • Manjira River
    • Indravati
    • Sabari River
    • Bindusara River
  • The Indravati, Pravara, Wardha, Wainganga, Kanhan, Pench, and Penuganga rivers flow a huge quantity of water into the Godavari River System.
  • The drainage basin of the river is present in six states of India: Chhattisgarh, Maharashtra, Andhra Pradesh, Madhya Pradesh, Karnataka, and Orissa.
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