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TRIFOOD Scheme: z It was launched in August 2020 and promotes value addition to MFP.
z TRIFOOD parks will produce processed foods from minor forest produce and also from the food gathered by the tribal people in that region.
Village and Digital Connect Initiative: z To ensure that existing schemes and initiatives reach the tribals, TRIFED’s regional officials across the country have been visiting identified villages with a significant tribal population. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
Matsya Setu Why in News Recently, the Ministry of Fisheries, Animal Husbandry and Dairying has launched the Online Course Mobile App “Matsya Setu” for fish farmers.
¾ The app was developed by the Indian Council of Agricultural Research-Central Institute of Freshwater Aquaculture (ICAR-CIFA) and National Fisheries Development Board (NFDB).
Key Points ¾ About: It aims to disseminate the latest freshwater aquaculture technologies to the aqua farmers of the country, thus increasing productivity and income. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
z Aquaculture is breeding, raising, and harvesting fish, shellfish, and aquatic plants.
z India is the second major producer of fish through aquaculture in the world.
It has a focus on grow-out culture of commercially important fishes like carp, catfish, scampi, murrel, ornamental fish, pearl farming etc. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
It can be used to disseminate the latest information on different schemes among the stakeholders, especially fishers, fish farmers, youth and entre preneurs across the country, and facilitate ease of doing business.
¾ Other Related Initiatives: Shaphari: Certification Scheme for Aquaculture Products: It is a market-based tool for hatcheries to adopt good aquaculture practices and help produce quality antibiotic-free shrimp products to assure global consumers. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
Establishment of Fisheries and Aquaculture Infrastructure Development Fund (FIDF) during 2018-19.
Pradhan Mantri Matsya Sampada Yojana: The programme aims to achieve 22 million tonnes of fish production by 2024-25.
Also, it is expected to create employment opportunities for 55 lakh people.
Focus on Blue Revolution: Creating an enabling environment for integrated and holistic management of fisheries for the socio-economic development of the fishers and fish farmers. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
Extension of Kisan Credit Card (KCC) facilities to fishers and fish farmers to help them in meeting their working capital needs.
GI Certified Bhalia Wheat: Gujarat Why in News Recently, the first shipment of Geographical Indication (GI) certified Bhalia variety of wheat was exported to Kenya and Sri Lanka from Gujarat.
Key Points ¾ About: The Bhalia variety of wheat received GI certification in July, 2011.
This Wheat has high protein content and is sweet in taste. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
This crop is grown mostly across the Bhal region of Gujarat which includes Ahmedabad, Anand, Kheda, Bhavanagar, Surendranagar, Bharuch districts.
This variety is grown in the rainfed condition without irrigation. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
¾ Other GI products from Gujarat are: CURRENT AFFAIRS JULY 2021 33 Note: www.drishtiIAS.com Latest is the wooden printing blocks of Pethapur and others are, furniture made in Sankheda, agates from Khambhat, Kutch embroidery, zari craft from Surat, patola from Patan, bandhani from Jamnagar, and Kesar mangoes from Gir.
¾ Geographical Indication Status: GI is an indication used to identify goods having special characteristics originating from a definite geographical territory. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
z It is used for agricultural, natural and manufactured goods.
The Geographical Indications of Goods (Registration and Protection) Act, 1999 seeks to provide for the registration and better protection of geographical indications relating to goods in India.
z The Act is administered by the Controller General of Patents, Designs and TradeMarks- who is the Registrar of Geographical Indications.
z The Geographical Indications Registry is located at Chennai. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
The registration of a geographical indication is valid for a period of 10 years.
It can be renewed from time to time for a further period of 10 years each.
It is also a part of the World Trade Organisation’s Trade-Related Aspects of Intellectual Property Rights (TRIPS).
Recent Examples: Jharkhand’s Sohrai Khovar painting, Telangana’s Telia Rumal, Tirur Vetilla (Kerala), Dindigul Lock and Kandangi Saree (Tamil Nadu), Odisha Rasagola, Shahi Litchi (Bihar), etc. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
Agricultural and Processed Food Products Export Development Authority (APEDA - Ministry of Commerce and Industry) has a focus on promotion of exports of GI products.
z Recently, a consignment of Dahanu Gholvad sapota was exported from Maharashtra’s Palghar district.
Wheat ¾ Rabi Crop: It is sown in October-December and harvested during April-June.
¾ Temperature: Between 10-15°C (Sowing time) and 21-26°C (Ripening & Harvesting) with bright sunlight.
¾ Rainfall: Around 75-100 cm. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
¾ Rainfall: Around 75-100 cm.
¾ Soil Type: Well-drained fertile loamy and clayey loamy (Ganga-Satluj plains and black soil region of the Deccan).
¾ Major wheat growing states in India are Uttar Pradesh, Punjab, Haryana, Madhya Pradesh, Rajasthan, Bihar and Gujarat.
India is the second largest producer after China.
Success of the Green Revolution contributed to the growth of Rabi crops, especially wheat. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
¾ Macro Management Mode of Agriculture, National Food Security Mission and Rashtriya Krishi Vikas Yojana are few government initiatives to support wheat cultivation.
¾ The wheat exports from India witnessed a significant growth of 808% in the fiscal 2020-21.
India exported a substantial quantity of grain to seven new countries - Yemen, Indonesia, Bhutan, Philippines, Iran, Cambodia and Myanmar during 2020-21. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
Youth and Food System Why in News A new UN report on youth and agriculture underscores the urgent need to make agri-food systems more appealing to young people to secure the future of global food security and nutrition.
¾ The report ‘Promoting youth engagement and employment in agriculture and food systems’ is 34 CURRENT AFFAIRS JULY 2021 Note: www.drishtiIAS.com prepared and shared to the UN by the Committee on World Food Security (CFS). | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
¾ CFS is an inclusive international and intergovernmental platform for all stakeholders to work together on food security and nutrition for all.
The CFS is hosted by the Food and Agriculture Organization (FAO) of the United Nations (UN).
Key Points ¾ Youth in Numbers: Youth aged between 15 and 24 years accounted for 16% of the world’s population in 2019. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
Young people were concentrated in Asia, Central and Southern Asia with 361 million youth and Eastern and South-Eastern Asia with 307 million youth, followed by sub-Saharan Africa (211 million youth).
The International Labour Organization (ILO) estimated that 440 million youth from the African continent would enter the labour market between 2015 and 2030. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
¾ Key Findings: Food systems are the largest employer: Particularly in the developing countries, yet they often do not provide decent and meaningful work or adequate livelihood opportunities, nor maintain a balance between the needs and rights of different generations. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
z Food systems are a complex web of activities involving production, processing, handling, preparation, storage, distribution, marketing, access, purchase, consumption, food loss and waste, as well as the outputs of these activities, including social, economic and environmental outcomes.
More Employment Opportunities: Covid-19 has affected labour markets around the world, hurting employment prospects for the youth more than those belonging to other age groups. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
Globally, employment among the youth fell 8.7% in 2020 compared with 3.7% for adults.
z Agri-food systems, if made more appealing and equitable to youth, are a large, untapped reservoir of employment opportunities.
Importance of Focusing on Developing Countries: As almost 88% of the world’s 1.2 billion youth live, particularly in Africa, where over 70% of youth subsist on USD 2 per day or less. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
Achieving Sustainable Development Goals: The youth engagement and employment in sustainable agri-food systems is simultaneously a goal to be realized and a means for the achievement of the Sustainable Development Goals, and of economic well-being.
Youth are on the front lines to build the food systems of the future, while also bearing significant risks from climate change, social and economic inequities, and political marginalization. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
¾ Recommendations: Approaches, initiatives and policies to strengthen youth engagement and employment in food systems need to be based on the pillars of rights, equity, agency and recognition.
Improving youth-focused social protection pro grammes, labour laws and regulations, and young people’s access to resources (land, forests, fish eries etc), finance, markets, digital technologies, knowledge and information. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
Supporting youth-led start-up initiatives is also important, and requires a supportive policy environment.
The redistribution of resources, knowledge and opportunities for youth can contribute to creating jobs for the youth, as well as directly supporting transitions to sustainable agri-food systems.
Indian Scenario ¾ Youth in Numbers: The youth (18-29 years) constitute 22% of India’s population, which is more than 261 million people. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
According to the Ministry of Statistics and Programme Implementation, the median age of Indian population is around 28 years in 2021 and will become 31 years by 2031.
India is also going through the stage of demographic dividend.
Hardly 5% of the youth are engaged in agriculture though over 60% of the rural people derive their livelihood fully or partly from farming and its related activities.
z Clearly, the modern youth are disenchanted with agriculture and are shunning it as a profession. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
¾ Related Initiatives: CURRENT AFFAIRS JULY 2021 35 Note: www.drishtiIAS.com MAYA Roadmap, 2018: This was formulated in a conference in New Delhi on “Motivating and Attracting Youth in Agriculture” (MAYA).
z The MAYA road map envisages offering the youth a variety of avenues and opportunities for economic growth, social respect and application of modern technologies in farming and allied activities. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
ARYA (Attracting and Retaining Youth in Agri culture): Indian Council of Agricultural Research (ICAR) has initiated this programme.
Following are its Objectives: z To attract and empower the Youth in Rural Areas to take up various Agriculture, allied and service sectors.
z To enable the Farm Youth to establish network groups to take up resource and capital intensive activities like processing, value addition and marketing. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
National Policy for Farmers, 2007: To introduce measures which can help attract and retain youths in farming and processing of farm products for higher value addition by making it intellectually stimulating and economically rewarding.
Authorised Economic Operators Programme Why in News The Central Board of Indirect Taxes & Customs (CBIC) has inaugurated the online filing of Authorised Economic Operators (AEO) applications. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
¾ The web application is designed to ensure continuous real-time and digital monitoring of physically filed AEO applications for timely intervention and expedience.
Key Points ¾ About: AEO is a programme (2007) under the aegis of the World Customs Organization (WCO) SAFE Framework of Standards to secure and facilitate global trade.
It aims to enhance international supply chain security and facilitate the movement of goods. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
Under this, an entity engaged in international trade is approved by WCO as compliant with supply chain security standards and granted AEO status.
An entity with an AEO status is considered a ‘secure’ trader and a reliable trading partner.
z Benefits of AEO status include expedited clearance times, fewer examinations, improved security and communication between supply chain partners.
AEO is a voluntary programme.
¾ Indian AEO Programme: The AEO Programme was introduced as a pilot project in 2011. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
The security standards detailed in WCO SAFE Framework are the basis of the Indian AEO programme.
There is a three tier AEO Status for Exporters and Importers.
The three tiers are AEO T1, AEO T2, AEO T3, where AEO T3 is the highest level of accreditation.
¾ Aim of Indian AEO Programme: To provide business entities with an internationally recognized certification.
To recognize business entities as “secure and reliable” trading partners. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
To incentivize business entities through defined benefits that translate into savings in time and cost.
Secure supply chain from point of export to import.
Enhanced border clearance.
Reduction in dwell time and related costs.
Customs advice / assistance if trade faces unexpected issues with Customs of countries.
¾ Benefits: Safe and Compliant Business: Worldwide recognition as safe, secure and compliant business partners in international trade. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
Reciprocal Recognition: India gets trade facilitation by a foreign country with whom India enters into a Mutual Recognition Agreement/Arrangement (MRA).
z MRA is an international agreement by which two or more countries agree to recognize one another’s conformity assessment results (for example certifications or test results). | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
Streamline Cargo security: It enables Indian Customs to enhance and streamline cargo security through 36 CURRENT AFFAIRS JULY 2021 Note: www.drishtiIAS.com close cooperation with the principal stakeholders of the international supply chain viz.
importers, exporters, logistics providers, custodians or terminal operators, custom brokers and warehouse operators. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
Promote Ease of Doing Business: A liberalized, simplified and rationalized AEO accreditation process has potential to promote Ease of Doing Business and to emulate global best practices.
Facility of Direct Port Delivery of import Containers and/ or Direct Port Entry of Export Containers.
z It also fast tracking of refunds and adjudications.
The Indian AEO Programme is a game-changer. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
The Indian AEO Programme is a game-changer.
It will not only achieve ‘Make in India’ but also substantially add to the vision and lead India to become a manufacturing and exporting power- house.
Anti-Dumping Duty Why in News Recently, the government has decided not to impose Anti-Dumping Duty (ADD) on imports of certain copper products, from China, Thailand, Korea and three other countries. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
Key Points ¾ About: In April, Directorate General of Trade Remedies (DGTR) recommended imposing the duty on “copper and copper alloy flat-rolled products” from China, Korea, Malaysia, Nepal, Sri Lanka and Thailand, after conducting a probe.
However, the Ministry of Finance takes the final call to impose these duties and issues notification for the same. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
¾ Anti Dumping Duty (Concept): Dumping: z Dumping is said to occur when the goods are exported by a country to another country at a price lower than the price it normally charges in its own home market.
z This is an unfair trade practice which can have a distortive effect on international trade.
Objective: z Imposition of Anti-dumping duty is a measure to rectify the situation arising out of the dumping of goods and its trade distortive effect. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
In the long-term, anti-dumping duties can reduce the international competition of domestic companies producing similar goods.
z It is a protectionist tariff that a domestic government imposes on foreign imports that it believes are priced below fair market value.
z The use of anti-dumping measures as an instrument of fair competition is permitted by the World Trade Organisation. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
Different from Countervailing Duties: z ADD is a customs duty on imports providing a protection against the dumping of goods at prices substantially lower than the normal value whereas Countervailing duty is a customs duty on goods that have received government subsidies in the originating or exporting country.
WTO’s Provisions Related to Anti-Dumping Duty: z Validity: An anti-dumping duty is valid for a period of five years from the date of imposition unless revoked earlier. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
z Sunset Review: It can be extended for a further period of five years through a sunset or expiry review investigation.
A Sunset review/ expiry review is an evaluation of the need for the continued existence of a program or an agency.
It allows for an assessment of the effectiveness and performance of the program or agency.
Such a review can be initiated suo moto or on the basis of a duly substantiated request received from or on behalf of the domestic industry. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
Forex Reserves Why in News According to the recent data from the Reserve Bank of India, India’s Foreign Exchange (Forex) Reserves surged by $ 5 billion to $ 609 billion in the week ended 25th June, 2021.
¾ Increase in the Foreign Currency Assets (FCA) is the major component of overall reserves.
Key Points CURRENT AFFAIRS JULY 2021 37 Note: www.drishtiIAS.com ¾ Changes in forex reserves holdings: FCA rose by $4.7 billion to$ 566 billion.
Gold reserves rose by $365 million to $36.296 billion. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
The special drawing rights (SDRs) with the International Monetary Fund (IMF) remained unchanged at $1.498 billion.
The country’s reserve position with the IMF increased marginally by $1 million to $4.965 billion in the week.
¾ Foreign Exchange Reserves: Foreign exchange reserves are assets held on reserve by a central bank in foreign currencies, which can include bonds, treasury bills and other government securities.
z It needs to be noted that most foreign exchange reserves are held in US dollars. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
India’s Forex Reserve include: z Foreign Currency Assets z Gold reserves z Special Drawing Rights z Reserve position with the International Monetary Fund (IMF).
¾ Objectives of Holding Forex Reserves: Supporting and maintaining confidence in the policies for monetary and exchange rate management.
Provides the capacity to intervene in support of the national or union currency. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
Limits external vulnerability by maintaining foreign currency liquidity to absorb shocks during times of crisis or when access to borrowing is curtailed.
¾ Significance of rising forex reserves: Comfortable Position for the Government: The rising forex reserves give comfort to the government and the RBI in managing India’s external and internal financial issues.
Managing Crisis: It serves as a cushion in the event of a Balance of Payment (BoP) crisis on the economic front. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
Rupee Appreciation: The rising reserves have also helped the rupee to strengthen against the dollar.
Confidence in Market: Reserves will provide a level of confidence to markets and investors that a country can meet its external obligations.
Foreign Currency Assets ¾ FCAs are assets that are valued based on a currency other than the country’s own currency.
¾ FCA is the largest component of the forex reserve.
It is expressed in dollar terms. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
It is expressed in dollar terms.
¾ The FCAs include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves.
Special Drawing Rights ¾ The SDR is an international reserve asset, created by the IMF in 1969 to supplement its member countries’ official reserves.
¾ The SDR is neither a currency nor a claim on the IMF.
Rather, it is a potential claim on the freely usable currencies of IMF members. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
SDRs can be exchanged for these currencies.
¾ The value of the SDR is calculated from a weighted basket of major currencies, including the US dollar, the euro, Japanese yen, Chinese yuan, and British pound.
¾ The interest rate on SDRs or (SDRi) is the interest paid to members on their SDR holdings. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
Reserve Position in the International Monetary Fund ¾ A reserve tranche position implies a portion of the required quota of currency each member country must provide to the IMF that can be utilized for its own purposes.
¾ The reserve tranche is basically an emergency account that IMF members can access at any time without agreeing to conditions or paying a service fee. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
Contraction of India’s Manufacturing Sector: PMI Why in News The IHS Markit India Manufacturing Purchasing Managers’ Index (PMI) slipped to 48.1 in June from 50.8 in May, moving below the 50-level separating growth from contraction. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
¾ India’s manufacturing activity contracted in June for the first time in 11 months as the second wave of the Covid-19 pandemic and strict containment measures negatively impacted demand and led to renewed contractions in factory orders, production, exports and quantities of purchases.
38 CURRENT AFFAIRS JULY 2021 Note: www.drishtiIAS.com Key Points ¾ PMI is a survey-based measure that asks the respondents about changes in their perception about key business variables as compared with the previous month. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
¾ The purpose of the PMI is to provide information about current and future business conditions to company decision makers, analysts, and investors.
¾ It is calculated separately for the manufacturing and services sectors and then a composite index is also constructed.
¾ The PMI is a number from 0 to 100.
A print above 50 means expansion, while a score below that denotes contraction.
A reading at 50 indicates no change. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
A reading at 50 indicates no change.
¾ If the PMI of the previous month is higher than the PMI of the current month, it represents that the economy is contracting.
¾ It is usually released at the start of every month.
It is, therefore, considered a good leading indicator of economic activity.
¾ PMI is compiled by IHS Markit for more than 40 economies worldwide.
IHS Markit is a global leader in information, analytics and solutions for the major industries and markets that drive economies worldwide. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
¾ As the official data on industrial output, manufacturing and Gross Domesr\tic Product (GDP) growth comes much later, PMI helps to make informed decisions at an earlier stage.
¾ It is different from the Index of Industrial Production (IIP), which also gauges the level of activity in the economy.
IIP covers the broader industrial sector compared to PMI.
However, PMI is more dynamic compared to a standard industrial production index. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
Revamped Distribution Sector Scheme Why in News Recently, the Cabinet Committee on Economic Affairs has approved a Reforms-based and Results-linked, Revamped Distribution Sector Scheme worth Rs.
3.03 trillion wherein the Centre’s share will be Rs.
97,631 crore.
¾ It aims to improve the operational efficiencies and financial sustainability of discoms (excluding Private Sector DISCOMs). | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
Key Points ¾ About: It will provide conditional financial assistance to strengthen the supply infrastructure of discoms (power distribution companies).
z The financial assistance will be based on meeting pre-qualifying criteria and upon achievement of basic minimum benchmarks.
All the existing power sector reforms schemes such as Integrated Power Development Scheme, Deen Dayal Upadhyaya Gram Jyoti Yojana, and Pradhan Mantri Sahaj Bijli Har Ghar Yojana will be merged into this umbrella program. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
The scheme will be available till 2025-26.
¾ Implementation: It would be based on the action plan worked out for each state rather than a ‘one-size-fits-all’ approach.
¾ Nodal Agencies: Rural Electrification Corporation and Power Finance Corporation.
¾ Components: Consumer Meters and System Meters: z The scheme involves a compulsory smart metering ecosystem across the distribution sector—starting from electricity feeders to the consumer level, including in about 250 million households. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
CURRENT AFFAIRS JULY 2021 39 Note: www.drishtiIAS.com z It is proposed to install approximately 10 crore prepaid Smart Meters by December, 2023 in the first phase.
Feeder Segregation: z Scheme also focuses on funding for feeder segregation for unsegregated feeders, which would enable solarization under the PM-KUSUM Scheme.
z Solarization of feeders will lead to cheap/ free day time power for irrigation and additional income for the farmers. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
Modernization of Distribution system in Urban Areas: z Supervisory Control and Data Acquisition (SCADA) in all urban areas.
Rural and Urban area System strengthening.
¾ Special Category States: North-Eastern State of Sikkim and States/Union Territories of Jammu & Kashmir, Ladakh, Himachal Pradesh, Uttarakhand, Andaman & Nicobar Islands, and Lakshadweep will be treated as Special Category States. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
¾ Objectives: Reduction of AT&C losses (operational losses due to inefficient power system) to pan-India levels of 12-15% by 2024-25.
Reduction of cost-revenue gap to zero by 2024-25.
Developing Institutional Capabilities for Modern DISCOMs. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
Open Network for Digital Commerce Why in News The Department for Promotion of Industry and Internal Trade (DPIIT) has issued orders appointing an advisory committee for its Open Network for Digital Commerce (ONDC) project that is aimed at curbing “digital monopolies”.
¾ This is in the direction of making e-commerce processes open source, thus creating a platform that can be utilised by all online retailers. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
¾ Earlier, the Ministry of Consumer Affairs released draft e-commerce rules for consumer protection which seek to bring changes to how e-commerce marketplaces, including Amazon and Flipkart, operate after small businesses complained that they misuse market dominance and deep-discounting to gain an unfair advantage.
Key Points ¾ About: The ONDC aims at promoting open networks developed on open-sourced methodology, using open specifications and open network protocols, independent on any specific platform. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
The project to integrate e-commerce platforms through a network based on open-source technology has been tasked to the Quality Council of India.
Implementation of ONDC, which is expected to be on the lines of Unified Payments Interface (UPI) could bring various operational aspects put in place by e-commerce platforms to the same level.
z Various operational aspects include onboarding of sellers, vendor discovery, price discovery and product cataloguing etc. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
On ONDC, buyers and sellers may transact irrespective of the fact that they are attached to one specific e-commerce portal.
¾ Significance: If the ONDC gets implemented and mandated, it would mean that all e-commerce companies will have to operate using the same processes (like Android Based Mobile Devices).
This could give a huge booster shot to smaller online retailers and new entrants. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
z If mandated, this could be problematic for larger e-commerce companies, which have their own processes and technology deployed for these segments of operations.
ONDC is expected to digitise the entire value chain, standardise operations, promote inclusion of suppliers, derive efficiency in logistics and enhance value for consumers. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
¾ Meaning of Open-Source: Making a software or a process open-source means that the code or the steps of that process is made available freely for others to use, redistribute and modify it. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
40 CURRENT AFFAIRS JULY 2021 Note: www.drishtiIAS.com z For example, while the operating system of Apple’s iPhones (iOS) is closed source, meaning it cannot be legally modified or reverse engineered, z Google’s Android operating system is open- source, and therefore it is possible by smartphone manufacturers such as Samsung, Xiaomi, OnePlus, etc to modify it for their hardware. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
¾ Government Initiatives Regarding e-Commerce in India: Consumer Protection (e-commerce) Rules 2020 Consumer Protection Act, 2019 E-Commerce ¾ Electronic commerce or e-commerce is a business model that lets firms and individuals buy and sell things over the Internet.
¾ Propelled by rising smartphone penetration, the launch of 4G networks and increasing consumer wealth, the Indian e-commerce market is expected to grow to USD 200 billion by 2026. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
¾ The Indian e-commerce industry has been on an upward growth trajectory and is expected to surpass the US to become the second-largest e-commerce market in the world by 2034.
World Bank Support to India’s Informal Working Class Why in News The World Bank has approved a USD 500 million loan programme to support India’s informal working class to overcome the current pandemic distress. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
¾ The loan will create greater flexibility for states to cope with the ongoing pandemic, future climate and disaster shocks.
Key Points ¾ World Bank’s Financial Support: About: z Of the USD 500 million commitment, USD 112.50 million will be financed by its concessionary lending arm International Development Association (IDA) and the rest will be a loan from International Bank for Reconstruction and Development (IBRD).
z The loan has a maturity period of 18.5 years including a grace period of five years. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
Fundings Since Start of Pandemic: z In 2020, provided immediate emergency relief cash transfers to about 320 million individual bank accounts identified through pre-existing national social protection schemes.
z Also an additional food rations for about 80 crore individuals.
¾ Significance: States can now access flexible funding from disaster response funds to design and implement appropriate social protection responses. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
The funds will be utilised in social protection programmes for urban informal workers, gig- workers, and migrants.
z A gig worker is indulged in the gig economy which is a free market system in which temporary positions are common and organizations contract with independent workers for short- term engagements.
It is aimed at building the resilience of economies and livelihoods of communities. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
Investments at the municipal level will promote National Digital Urban Mission that will create a shared digital infrastructure for people living in urban areas and will scale up urban safety nets and social insurance for informal workers.
z It will also include gender-disaggregated information on women workers and female- headed households. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
z This will allow policymakers to address gender- based service delivery gaps and effectively reach CURRENT AFFAIRS JULY 2021 41 Note: www.drishtiIAS.com the unreached, particularly widows, adolescent girls, and tribal women.
Street vendors are an integral part of India’s urban informal economy. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
The programme will give street vendors access to affordable working capital loans of up to Rs 10,000. z Some five million urban street vendors could benefit from the new credit programme, ¾ Informal Sector Worker: The informal sector is the part of any economy that is neither taxed nor monitored by any form of government.
z The workers who indulge in the informal sector are informal sector workers or informal workers.
The informal sector provides critical economic opportunities for the poor. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
It is largely characterized by skills gained outside of a formal education, easy entry, a lack of stable employer-employee relationships, and a small scale of operations.
Unlike the formal economy, the informal sector’s components are not included in GDP computations.
¾ Need to Protect Informal Workforce: India’s estimated 450 million informal workers comprise 90% of its total workforce, with 5-10 million workers added annually. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
Further, according to Oxfam’s latest global report, out of the total 122 million who lost their jobs in 2020, 75% were lost in the informal sector.
Job loss and further increasing informalisation due to the Covid-19 pandemic and subsequent lockdown has resulted in lack of social protection to poors.
Moreover, in the financial year 2020-21, the economy contracted by 7.7%.
So, there is an urgent need to revive the economy by generating employment and the informal sector is more labour intensive. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
¾ Some Initiatives by the Government: Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM) Labour Reform Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) PM SVANidhi: Micro Credit Scheme for Street Vendors Atmanirbhar Bharat Abhiyan Deendayal Antyodaya Yojana National Urban Livelihoods Mission World Bank Group ¾ The World Bank Group is a unique global partnership which consists of five development institutions. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
¾ International Bank for Reconstruction and Development (IBRD) provides loans, credits, and grants.
¾ International Development Association (IDA) provides low- or no-interest loans to low-income countries.
¾ The International Finance Corporation (IFC) provides investment, advice, and asset management to companies and governments.
¾ The Multilateral Guarantee Agency (MIGA) insures lenders and investors against political risk such as war. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
¾ The International Centre for the Settlement of Investment Disputes (ICSID) settles investment- disputes between investors and countries.
India is not a member of ICSID.
¾ As of now, IBRD has 189 member countries, while IDA has 173.
Four Years of the GST Why in News Recently, the Central Board of Indirect Taxes and Customs (CBIC) decided to felicitate around 54,000 taxpayers to mark the competition of 4 years of Goods and Services Tax (GST). | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
Key Points ¾ Achievements of GST: Automated Indirect Tax Ecosystem: z The introduction of e-way bills coupled with the crackdown on fake invoicing has helped in bringing in a substantial portion of GST revenues, which were either being evaded or under-reported.
z E-invoicing system would also usher the taxpayers into a fully automated compliance regime wherein the computation of tax liabilities and matching of input tax credit would become very simple. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
42 CURRENT AFFAIRS JULY 2021 Note: www.drishtiIAS.com Simplification of Compliance: z Various initiatives viz.
linking the customs portal with GST portal for credit availability on imports, making available proper means for matching input tax credit, increased automation of the refund procedure to seamless operation of the Invoice Registry Portal, helped simplify tax compliance. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
Functioning of GST Council: z The GST Council made corrections to law, issued clarifications on complex issues, rationalized GST rates and introduced relaxations for dealing with the Covid-19 pandemic, which establishes that the GST Council structure has been very functional and agile.
Example to the World: z India has served as an example to the world by successfully implementing one of the most complex tax transformation projects for the country. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
¾ Challenges: Fiscal Federalism: z This issue became controversial when GST collections fell because of the pandemic.
z Because GST entailed a bigger surrender of taxation powers for the states – states do not levy direct taxes or customs duties – a guaranteed revenue growth of 14% for a period of five years was offered to them by the centre to get them to agree. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
Issues Highlighted by the 15th Finance Commission: z The 15th Finance Commission has highlighted several areas of concern in the GST regime relating to multiplicity of tax rates, shortfall in GST collections vis-à-vis the forecast, high volatility in GST collections, inconsistency in filing of returns, dependence of States on the compensation from Centre and so on.
Large Businesses vs Small Businesses: z The fundamental principles on which the GST law was built viz. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
seamless flow of input credits and ease of compliance has been impaired by IT glitches.
z Indirect taxes, unlike direct taxes such as income tax, do not differentiate between the rich and the poor and therefore put a bigger burden on the latter.
z Further, small and medium businesses are still grappling to adapt to the tech-enabled regime. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
¾ Suggestions: With oil prices sky-rocketing across the country, the policymakers need to contemplate the inclusion of petroleum and related products within the GST net.
It is vital to finally constitute the GST Appellate Tribunal as it is obvious that all taxpayers do not have the finances or means to approach the High Court for every practical difficulty faced. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
Streamlining of anti-profiteering measures and simplification of compliance procedures also needs to be revisited to ensure that the cost efficiency and reduction in prices envisaged under GST law finally reaches the common man.
Goods and Services Tax ¾ About: The GST is a value-added tax levied on most goods and services sold for domestic consumption.
The GST is paid by consumers, but it is remitted to the government by the businesses selling the goods and services. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
GST, which subsumed almost all domestic indirect taxes (petroleum, alcoholic beverages and stamp duty are the major exceptions) under one head, is perhaps the biggest tax reform in the history of independent India.
It was launched into operation on the midnight of 1st July 2017.
¾ Features of GST: Applicable on Supply Side: GST is applicable on ‘supply’ of goods or services as against the old concept on the manufacture of goods or on sale of goods or on provision of services. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
Destination based Taxation: GST is based on the principle of destination-based consumption taxation as against the principle of origin-based taxation.
Dual GST: It is a dual GST with the Centre and the States simultaneously levying tax on a common base.
The GST to be levied by the Centre is called Central GST (CGST) and that to be levied by the States is called State GST (SGST). | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
z Import of goods or services would be treated as inter-state supplies and would be subject to Integrated Goods & Services Tax (IGST) in addition to the applicable customs duties.
CURRENT AFFAIRS JULY 2021 43 Note: www.drishtiIAS.com GST rates to be mutually decided: CGST, SGST & IGST are levied at rates to be mutually agreed upon by the Centre and the States.
The rates are notified on the recommendation of the GST Council.
Multiple Rates: GST is levied at four rates viz.
5%, 12%, 18% and 28%. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
5%, 12%, 18% and 28%.
The schedule or list of items that would fall under these multiple slabs are worked out by the GST council.
z This is aside from the tax on gold that is kept at 3% and rough precious and semi-precious stones that are placed at a special rate of 0.25% under GST.
¾ GST Council: It is a constitutional body (Article 279A) for making recommendations to the Union and State Government on issues related to GST. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
The GST Council is chaired by the Union Finance Minister and other members are the Union State Minister of Revenue or Finance and Ministers in-charge of Finance or Taxation of all the States.
It is considered as a federal body where both the centre and the states get due representation.
¾ Reforms brought about by GST: Creation of a Common National Market: By amalgamating a large number of Central and State taxes into a single tax. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
Mitigation of cascading effect: z The GST that a merchant pays to procure goods or services (i.e.
on inputs) can be set off later against the tax applicable on supply of final goods and services.
The set off tax is called input tax credit.
z The GST thus avoids cascading effect or tax on tax which increases the tax burden on the end consumer.
Reduction in Tax Burden: From the consu- mers’ point of view, the biggest advantage is in terms of reduction in the overall tax burden on goods. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
Making Indian Products More Competitive: Introduction of GST is making Indian products more competitive in the domestic and international markets owing to the full neutralization of input taxes across the value chain of production.
Financial Stability Report: RBI Why in News Recently, the Reserve Bank of India (RBI) released the 23rd issue of its Financial Stability Report (FSR). | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
¾ The FSR which is published biannually reflects the collective assessment of the Sub-Committee of the Financial Stability and Development Council (FSDC - headed by the Governor of RBI) on risks to financial stability and the resilience of the financial system.
¾ The Report also discusses issues relating to development and regulation of the financial sector. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
Key Points ¾ Impact of Covid-19 Second-Wave: The impact of the Covid-19 Second-Wave on the balance sheets of Indian banks has been less than what was projected before and capital buffers are reasonably resilient to withstand future shocks.
z A capital buffer is required reserves held by financial institutions put in place by regulators.
These are designed to provide banking organizations with the means to support the economy in adverse situations. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
Covid-19 Second-Wave has dented economic activity, but monetary, regulatory and fiscal policy measures have helped curtail the solvency risk of financial entities, stabilise markets, and maintain financial stability.
z Solvency risk is the risk of being unable to absorb losses, generated by all types of risks, with the available capital.
¾ Global Recovery: Sustained policy support, benign financial conditions and the gathering momentum of vaccinations are nurturing an uneven global recovery. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
Policy support has helped in shoring up financial positions of banks, containing non-performing loans and maintaining solvency and liquidity globally.
¾ New Risks: While the recovery is underway, new risks have emerged which are: z Nascent and mending state of the upturn (Revival of Economy).
44 CURRENT AFFAIRS JULY 2021 Note: www.drishtiIAS.com z Economy Vulnerable to shocks and future waves of the pandemic.
z International commodity prices and inflationary pressures. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
z Global spillovers amid high uncertainty.
z Rising incidence of data breaches and cyber attacks.
¾ Gross Non-Performing Asset Ratio: The Gross Non-Performing Asset (GNPA) ratio of India’s Scheduled Commercial Banks (SCBs) may climb by the end of 2021-22 to as much as 11.2% under a severe stress scenario, from 7.48% in March 2021. z The GNPA ratio of SCBs may increase to 9.8% by March 2022 under the baseline scenario. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
While banks’ exposures to better rated large borrowers are declining, there are incipient signs of stress in the Micro, Small and Medium Enterprises (MSMEs) and retail segments.
The demand for consumer credit across banks and Non-Banking Financial Companies (NBFCs) has decreased, with some deterioration in the risk profile of retail borrowers becoming evident.
z Retail Loans are provided to purchase property, vehicles or other assets such as essential electronics. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |
¾ CRAR & PCR: Banks have managed to capitalise themselves well during 2020-21 aiding them in maintaining adequate capital adequacy even under stress situations.
The Capital to Risk-Weighted Assets Ratio (CRAR) of SCBs increased to 16.03% and the Provisioning Coverage Ratio (PCR) stood at 68.86% in March 2021.
¾ Restructuring of Loans: During 2020-21 the RBI had introduced a one-time restructuring scheme to aid borrowers affected by the Covid-19 pandemic. | https://docs-lawep.s3.us-east-2.amazonaws.com/thematic2f/pw_2/1721909124088.pdf | https://www.drishtiias.com/images/pdf/Monthly%20Current%20Affairs%20Consolidation%20(July%202021)%20%E2%80%93%20Part%20IF.pdf | Brunei Darussalam |