Current Affairs for BANK, IBPS Exams 01 March 2017

Current Affairs for BANK, IBPS Exams

01 March 2017

:: National ::

Third quarter growth remained at 7% despite demonetisation

CSO has kept its January estimate for growth in GDP in 2016-17 unchanged at 7.1%, signalling that independent economic forecasters may have overstated the drag on the economy from the November withdrawal of high-value currency notes.
The CSO, which released its second advance estimates of economic growth, also provided GDP and Gross Value Added (GVA) figures for the third quarter, which showed GDP growth slowing to 7%, from 7.3% in the second quarter.
The numbers are vindication that demonetisation didn’t have a major impact on the economy. They have looked at all the numbers at their disposal and have come out with their estimate.”
The official figures peg GVA growth for the full year at 6.7% as against the 7% projected in the first advance estimates. For Q3, the GVA growth rate is estimated at 6.6%, down from the 7.1% reported in Q2.
The CSO also revised downward the GVA growth rates for the first two quarters to 6.9% in Q1 and 6.7% in Q2, from the 7.3% and 7.1% reported earlier.
The reason why GDP has maintained is because the reduction in GVA has been compensated for by an improved estimate in net indirect taxes.
The Election Commission had barred CSO from releasing State-specific data on economic growth projections, in view of the ongoing Assembly elections.The Commission gave a clearance to the release of only national level data.

IMD predicts above normal temperature across country

Prepare for a scorching summer as the India Meteorological Department has forecast “above normal” temperatures across most of the country.
Himachal Pradesh, Uttarakhand, Jammu and Kashmir — or hill-station States popular among tourists wanting to escape the heat — are expected to be particularly hot with predicted temperatures, on average, likely to be well above 1 degree C above their normal summer temperatures.
Punjab, Delhi, Haryana, Rajasthan, Uttar Pradesh, Gujarat, Madhya Pradesh, Chhattisgarh, Bihar, Jharkhand, West Bengal, Odisha and Telangana are other States in the “core heat zone” that are likely to see significantly warmer temperatures.
The IMD weather model, used to prepare the forecast, shows a 47% probability of summer temperatures being above normal.
The summer forecast is in line with a generally warm trend over previous months. 2016 was the warmest year in a century, according to the IMD, with the country 0.91 C warmer than the 1961-1990 average.
The summer months of March-May last year were 1.36 C higher than historical average, making it the second-warmest since 1901.
The weather agency blames global warming. “Studies indicate increasing trends in the frequency and duration of heat waves over the country.”

India and US engage in issue of safety of Indians in US

Indian and U.S. officials are engaging on the issue of safety of Indians in America, the External Affairs Ministry said ahead of a visit by Foreign Secretary S. Jaishankar to Washington.
It said there was no need for India to issue a “demarche” to the U.S. over the suspected racially motivated killing of an Indian engineer.
The statement came amid rising criticism in the U.S. and Indian media over the lack of a response from U.S. President Donald Trump on the killing, although White House spokesperson Sean Spicer did call details of the incident “disturbing”.
Meanwhile, hailing the talks between Mr. Jaishankar and Chinese Executive Vice-Minister for Foreign Affairs Zhang Yesui in Beijing last week as “positive and constructive”, the Ministry said that they had “addressed the full complexity of India-China relations”.
The official also said that “common ground” had been found during specific exchanges on Afghanistan, U.N., counter-terrorism and nuclear issues.

Al Nagah-II 2017 between armies of India and Oman

The armies of India and Oman are scheduled to conduct their second bilateral exercise, Al Nagah-II 2017, in March with a focus on counter-terrorism.
India has, of late, been deepening its defence cooperation with the region. The Chief of the Naval Staff, Admiral Sunil Lanba, is on a tour of Oman and the UAE to “explore new avenues for naval cooperation”.
The Army said in a statement that the exercise would be held in the Dhauladhar Ranges at Bakloh in Himachal Pradesh from March 6 to 19.Sixty troops from the two sides will participate.
An added aim, the statement said, is to enhance knowledge of each other’s military procedures qualitatively, thus increasing the scope for “interoperability and better responsiveness to a common threat”.
In preparation for the exercise, the Indian team has undergone extensive training in rock climbing and slithering and counter-terrorism or low-intensity conflict operations, in addition to tactical drills of close cordon and house intervention drills.
India and Oman already have extensive cooperation in the maritime domain.The navies of the two countries have been holding the bilateral maritime exercises called ‘Naseem Al Bahr’ since 1993.
In addition, the Indian Navy has been cooperating with its UAE and Oman counterparts in training, operational interactions and exchange of “white shipping information” with the help of a joint cooperation committee.

Mallya’s extradition issue raised with U.K.

The issue of the overstaying of “certain individuals” wanted by India was raised over the past two days, including with British Prime Minister Theresa May, during meetings held between Finance Minister and senior Cabinet members in the U.K.
While discussions did not name individuals, it was a clear reference to India’s bid to push for the extradition of Vijay Mallya.
Other issues discussed with Mr. Hammond and the Prime Minister include follow-up of Ms. May’s visit to India last November, including plans to establish an India-U.K. Sub Fund under the National Investment and Infrastructure Fund.
This fund will leverage private sector investment in London to fund infrastructure projects in India, as well as the economic and financial dialogue due to take place later this year.
The Prime Minister was eager to stress that independently of Brexit, India-U.K. relations were on an upward path. The previous day Mr. Jaitley met Foreign Secretary Boris Johnson, during which meeting the extradition issue was also raised.
Mr. Jaitley has been on a five-day visit to the U.K. which has combined the launch of the India-U.K. year of culture — and a grand reception at Buckingham Palace hosted by Queen Elizabeth.

Law ministry asks for opinion about AIJS

The Union Law Ministry has sought an opinion from Attorney-General Mukul Rohatgi and Solicitor-General Ranjit Kumar on the long-standing proposal for an all-India judicial service for the lower judiciary.
The decision was taken at a meeting chaired by Union Law Minister Ravi Shankar Prasad on January 16. Various issues related to the proposal for a separate cadre for the lower judiciary were discussed.
However, several State governments and courts hold various views on the issue.
While in several states local languages are currently used for official works in the lower courts, candidates selected from one state might face difficulty in another state -- this is one of the unresolved problems.
It has also been argued that such an arrangement might lead to problems in the career progression of state judicial service officials.
The Law Commission has endorsed the idea of having a national-level judicial service on the lines of All-India Civil Services.
A department-related Parliamentary Standing Committee on Personnel, Public Grievances, Law and Justice, in its 15th report, has also recommended such a judicial service for the appointment of district-level judges.

:: Business and Economy ::

OECD threw its weight behind India’s rating upgrade

Internationally influential think-tank, OECD threw its weight behind India saying the country is worthy of a credit rating upgrade, but cautioned Indian policy makers against taking measures only with an aim to get a better rating.
The OECD also said the Indian government needed to do “much more”, in terms of promoting India through road shows.
The government needs to be a “good salesman” — by informing global investors and rating agencies about the reforms it had already undertaken “in the best interest of the country” as well as their positive impact on the economy.
India’s (sovereign) credit rating has remained unchanged for the past several years at ‘BBB (-)’ — or the lowest investment grade, which is only a grade above “junk” status for government/sovereign bonds.
Leading international credit rating firms such as Standard & Poor’s, Moody’s and Fitch rate government/sovereign bonds on the basis of lending risks — or, in other words, their estimation of the borrower’s ability to repay its debt and the likelihood of them defaulting.
According to the Indian government’s Economic Survey 2016-17, “India’s ratings have remained stuck at the much lower level of BBB-, despite the country’s dramatic improvement in growth and macro-economic stability since 2014.”

Govt to hold fresh auctions this year

The government will hold fresh spectrum auctions between July and December this year and the exercise will be an annual affair from now, Telecom Secretary JS Deepak said.
The Centre is also working to ensure that India embraces 5G telecom networks in tandem with the rest of the world, unlike 3G and 4G technologies whose rollout was far slower, he said.
This year’s auctions are likely to be held between July and December and the department of telecom is soon going to send a request to telecom regulator TRAI for its recommendations on the spectrum to be sold, the price and newer spectrum bands that could be offered.
Before July, the department will frame a policy for the use of various spectrum bands, including high frequency bands.
“We are putting up new bands that can be used for other applications including 5G. Someone may now want 500 Mhz as well. And if they don’t want it, it’s okay, we will keep it,” he said.
While limited spectrum was offered in auctions till 2015, since last year, the government has started putting all the available spectrum on sale in line with a Supreme Court judgement, the secretary said.
While South Korea is expected to be the first country to rollout 5G network services in time for the 2018 Winter Olympics, Mr. Deepak said India is keen to be an early mover.
The department is also framing a policy on the use of higher frequency spectrum for different purposes, including 5G services and is expected to unveil it in the next three months.

OECD keeps India’s growth forecast to 7%

The Organisation for Economic Cooperation and Development (OECD) on Tuesday cut its growth projection for India in 2016-17 to 7% from the 7.4% it had projected last year.
The OECD, in its Economic Survey of India 2017 report, forecast a growth rate of 7.3% for 2017-18 and 7.7% for 2018-19.
This is more than double the current global growth figure, and four times the OECD average. At the same time, inflation, the current account deficit, and the central government deficit have all been brought down in the past few years.
Mr. Gurria, however, said that this was not the time to “rest on one’s laurels” and that the reform momentum must continue to make growth more inclusive.
Also speaking at the launch of the report, Economic Affairs Secretary Shaktikanta Das reiterated that one of the most major tax reforms in India, the Goods and Services Tax, would roll out from July 1.
The report raised some issues that could alter the performance of the Indian economy, including the bank NPA issue and geopolitical risks.
However, the report added that while banks’ stressed assets have increased in recent years, reaching 12.3% of GDP in September 2016.
The increase in NPLs (non-performing loans) largely reflects greater recognition of them, rather than a further deterioration of underlying fundamentals.
Within tax reform, the survey report highlighted some key measures that were needed to increase revenue and align the system to international standards.
The OECD recommended implementing the reduction of the corporate tax rate from 30% to 25%, provide certainty regarding tax rules and their implementation, and increase the number and training of staff employed in the tax administration.

Core sector slows to 3.4% in January

The growth of eight core sectors slowed down to a five-month low of 3.4% in January mainly due to contraction in output of refinery products, fertiliser and cement.
The growth rate of eight infrastructure sectors of coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity was 5.7% in January 2016.
Infrastructure sectors’ expansion in January this year is the lowest since August 2016, when the segments had recorded a growth of 3.2%. It is also lower than that of 5.6% seen in December 2016.
The core sectors, which contribute 38% to the total industrial production, expanded 4.8% in April - January this fiscal compared with 2.9% growth in the same period in the previous financial year.