Current Affairs for BANK, IBPS Exams 29 August 2016

Current Affairs for BANK, IBPS Exams

29 August 2016

:: National ::

PM touches imp. issues in Mann ki baat program

Prime Minister Narendra Modi talked of the tense situation in Jammu and Kashmir, saying that any loss of life, whether of any youth or security personnel, is “our loss, a loss of our own people and our country.”
He warned those pushing youngsters towards violence that they would be held accountable some day.
Unity and compassion in dealing with the situation in the State were the two things that the Prime Minister said he took away from his recent interactions with various political groups on the Kashmir policy.
“It’s a view of 125 crore people of this country ... from a pradhan of a village to the Prime Minister, that if any life is lost in Kashmir it is our loss, a loss of our people and our country.”
The Prime Minister said the country had always made sincere efforts to strengthen its relationship with its neighbours.
President Pranab Mukherjee launched Akashvani Maitri channel, which will connect us with Bangladesh in a deeper way.
Mr. Modi also touched upon a variety of subjects, among them GST. He credited all parties with unanimously approving the GST Bill which, he said, displayed the strength of unity.

India became only the fourth nation to flight-test a scramjet engine

India became only the fourth nation to flight-test a scramjet engine, a technology that scientists claim could change the way space travel is undertaken.
Though the full development of the engine, for an “air breathing” propulsion system that significantly reduces the amount of fuel needed to fire up engines on a rocket, is “decades away”.
ISRO conducted its first trial of the engine, from the Satish Dhawan Space Centre, Sriharikota. It used an Advanced Technology Vehicle (ATV), a sounding rocket, for the test.
The ATV with the scramjet engines weighed 3,277 kg at lift-off.

India is planning a major diplomatic outreach ahead of the UNGA

India is planning a major diplomatic outreach ahead of the 71st session of the United Nations General Assembly in order to push through the ‘Comprehensive Convention on International Terrorism’ (CCIT).
CCIT addresses, among other things, the issue of Pakistan’s alleged support for cross-border terrorism in south Asia.
India will brief visiting Peter Thomson, President-elect of the U.N. General Assembly, on CCIT, and launch the campaign during the September 13-18 Non Aligned Movement summit in Venezuela.
The run-up to the UNGA session has been tense after the Organisation of Islamic Cooperation (OIC) expressed “deep concern” over the situation in Jammu and Kashmir after Pakistan reached out to the OIC on the issue.
India’s strategy for the CCIT is independent of the one on Kashmir as it is a bilateral issue.

The U.S. will push for India’s membership of the Nuclear Suppliers Group

The U.S. will push for India’s membership of the Nuclear Suppliers Group when the issue is taken up later this year, at the “highest levels”, U.S. Ambassador to India Richard Verma has said.
The Obama administration will hold its last round of the Strategic and Commercial Dialogue (S&CD) with India, when Mr. Kerry and U.S. Commerce Secretary will meet their counterparts Sushma Swaraj and Nirmala Sitharaman.
U.S. will take up India’s case at the “highest levels”, i.e. between President Obama and President Xi, possibly during their upcoming meeting at G-20 next week.
In 2008, former President George Bush’s phone call to former Chinese President Hu Jintao swung a waiver from the NSG in India’s favour.
Indicating that China’s tough position on the South China Sea and the Indo-U.S. ‘Joint vision for the Asia Pacific’ will also be discussed during the S&CD meet.
Bahrain government has offered to extend financial help to the Odisha family
Moved by reports of a man carrying his wife’s body on his shoulder for burial in Odisha, the Bahrain government has reportedly offered to extend financial help to the grieving family.
The Indian embassy in Bahrain is, however, yet to receive an official confirmation from the office of Bahrain Prime Minister Prince Khalifa bin Salman Al Khalifa about the amount.
The Bahraini Prime Minister responded to media reports on the episode and has made an offer for humanitarian assistance.
He has decided to make a contribution but we have not yet received any official confirmation regarding the amount of money or when it will be made.

:: International ::

UN urged African nations to close a gender gap that also has economic cost

The UN on Sunday urged African nations to close a gender gap that is costing an estimated $95 billion a year in lost economic potential.
“Where there are high levels of gender inequality, societies are missing out,” UN Development Fund (UNDP) director Helen Clark told AFP.
“They are not harnessing the full potential of women, and that costs economically, at the family level, community level and the national level.”
In many African nations, women are banned from owning or inheriting land, making it hard for them to borrow money.

DCNS will go to court against publishing leaked documents on the Scorpenes

French submarine manufacturer DCNS, which is set to seek an injunction in the Supreme Court of New South Wales, to stop The Australian from publishing more leaked documents on the Scorpenes.
A report in the newspaper said DCNS has also filed a complaint against unknown persons for breach of trust with the Paris prosecutor which includes “receiving stolen goods and complicity.”
It also contested Defence Minister Manohar Parrikar’s claim that the impact of the leak was minimal as, among other things, it does not include weapons details as they are from a different manufacturer.

:: Business and Economy ::

Trade ministers from WTO member nations to meet in Oslo

Trade ministers from various World Trade Organisation (WTO) member nations are slated to gather at the Norwegian capital, Oslo, in October to discuss the need for further liberalisation of global trade amid growing protectionism.
The ‘special’ meet will also deliberate upon the WTO’s future role in the context of ‘new’ challenges for the global trading system and some ‘troubling’ international political developments.
The high-level political convergence comes against the backdrop of WTO Director-General Roberto Azevêdo’s statement last month in his ‘Mid-year Report on Trade-related Developments’.
The report showed “a worrying rise in the rate of new trade-restrictive measures put in place each month (by WTO member countries) — hitting the highest monthly average since 2011.”
It is also being planned at a time when the progress in the WTO’s nearly 15-year-old Doha Round negotiations — to further open up international trade — is seen to be “very slow” especially due to the perceived ‘disengagement’ of the U.S.
The Oslo meet is also likely to discuss the so-called ‘new issues’ considered important by the rich nations in today’s global trade.
These include efforts to reach an agreement at the WTO-level to eliminate tariffs on environmental & sustainable goods produced using clean & green energy.
India is preparing to take the lead in WTO-level talks to open up global services trade, especially to ensure easier movement of skilled professionals for short-term projects overseas.
India — with a strong services sector and a huge pool of skilled professionals — had informally pitched for a WTO-level ‘TFA in Services’ at the Organisation for Economic Co-operation and Development ministerial council meeting in Paris.
The ‘TFA in Services’ proposal, similar to the WTO’s TFA for Goods (aimed at easing customs norms & boosting global merchandise trade), was then welcomed by Azevêdo and several trade ministers.
India had also objected to Britain tightening norms for foreign skilled workers.

The journey ahead for introducing the GST may not be easy

In a historical move for the country, the 122nd Constitutional Amendment Bill to introduce the Goods and Services Tax (GST) was unanimously passed by Parliament this session.
Widely believed to be the most important tax reform since 1991, the GST will transform India into a unitary market, lower transaction and logistics costs, spread the tax net wider and propel investments and growth.
Given the multiplicity of taxes at the Central and State Government levels, evolving a single indirect tax was a challenge; but all political parties came together in a paradigm of cooperation and consensus to make it a reality.
The journey ahead for introducing the GST will not be easy as a number of steps are required from different stakeholders.
For industry too, conforming to the new administrative processes within a compressed time-frame will be challenging.
One of the first tasks for the new GST Council proposed to be set up under the Bill would be to decide on the applicable tax rate.
This rate will be central to the success of the endeavour as it would impact India’s macroeconomic indicators, including GDP growth rate, inflation, the fiscal condition of the Central and State governments, and so on.
It would also impact the common man’s daily life, employment creation and external trade as well as the competitiveness of industry in a difficult global environment.
The revenue neutral rate (RNR) ranged from 11.6 per cent to 17.7 per cent. The committee, after a detailed study, recommended a reasonable RNR of 15-15.5 per cent which would determine the standard rate of 17-18 per cent and a lower rate of 12 per cent for essential goods.
CII broadly concurs with this standard rate plus a merit and demerit rate for identified goods and services. There are several compelling reasons for keeping the standard rate at around 18 per cent.
For one, the standard rate of 18 per cent ensures that the tax revenues of the Centre and States would not be adversely impacted by the introduction of GST.
The Centre has also assured the States of full compensation for five years.
Second, the key impact of a higher rate would be on prices which would create an adverse consumer mindset and would hamper buy-in.
For example, the tax on services is currently set at 15 per cent including cesses, and a sudden increase beyond an acceptable standard rate of 18 per cent would lead to lack of confidence in the GST as a beneficial tax reform.
Third, the impact on inflation arising from a tax rate that is set too high would be inimical to the entire economy.
A reasonable standard tax rate of 18 per cent would not only deter inflation build-up, but would also protect the consumer’s incomes and interests.
The Subramanian Committee estimated the impact of a standard rate of 22 per cent on inflation as 0.3-0.7 per cent and stated that a lower RNR would ensure consumer buy-in, as also be less regressive relative to direct income taxes.