GS- 2nd Paper
Topic- Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.
US India Strategic Partnership Forum (USISPF)
Context
The members of US India Strategic Partnership Forum (USISPF) called on Prime Minister.
About USISPF
- The US-India Strategic Partnership Forum (USISPF) is a non-profit organization, with the primary objective of strengthening the U.S.-India bilateral and strategic partnership.
- The forum advocates policies in the fields of economic growth, entrepreneurship, employment-creation, and innovation.
US – India Bilateral Trade
- S. total bilateral trade (goods and services) with India was $126 billion in 2017.
- Bilateral trade witnessed an average 5.6% annual growth rate for the previous five years.
- S. exports of goods and services to India totaled $48.8 billion in 2017,
- Total exports growth rate i.e., 15.5% in 2017 more than trebled from the average export growth rate of 4.8% achieved for the previous 5 years.
- While total imports growth rate i.e., 7.4% in 2017 increased from the average import growth rate of 5.2%.
U.S. Exports to India
- India was the 15th largest goods export market for U.S. exporters in 2017.
- The U.S. exports were $25.7 billion in 2017, up 18.8% from the 2016 level of $21.7 billion.
- This is the highest annual growth rate on record in US exports to India for more than a decade. U.S. merchandise exports to India accounted for 1.7% of overall U.S. exports in 2017.
- The top export categories in 2017 were-
- Precious metal and stone (diamonds) ($7.0 billion),
- Mineral fuels ($2.8 billion),
- Aerospace ($2.1 billion),
- Machinery ($2.1 billion),
- Optical and medical instruments ($1.4 billion).
U.S. Imports from India
- India was the United States’ 11th largest supplier of goods imports in 2017.
- S. goods imports from India totaled $48.6 billion in 2017, up 5% from 2016.
- S. imports from India account for 2.1% of overall U.S. imports in 2017.
- The top import categories in 2017 were-
- Precious metal and stone (diamonds) ($10.6 billion),
- Pharmaceuticals ($6.3 billion),
- Mineral fuels ($2.7 billion),
- Machinery ($2.64 billion),
- Miscellaneous textile articles ($2.6 billion).
GS- 2nd Paper
Topic- Statutory, regulatory and various quasi-judicial bodies.
Defence Acquisition Council (DAC)
Context
Defence Acquisition Council Chaired by Raksha Mantri gives a big impetus to indigenous industry.
About
- The Defence Acquisition Council (DAC) accorded approval for Capital Procurement for the Defence forces amounting over Rs. 3300 crores of indigenously designed and developed equipment.
- DAC accorded approval for three projects to be indigenously designed, developed and manufactured by the Indian industry.
- The first two projects include third generation Anti-Tank Guided Missiles (ATGM) and the Auxiliary Power Units (APUs) for the T-72 and T-90 Tanks.
- While the third generation ATGM would provide ‘Fire and Forget’ and “Top Attack” capabilities to the troops in an armoured battle.
About Defence Acquisition Council (DAC)
- The Defence Acquisition Council (DAC) is Defence Ministry’s highest decision making body for capital acquisition proposals forwarded by the Indian armed forces.
- It was set up in 2001 as part of the post-Kargil reforms in defence sector.
- It approves the long-term integrated perspective plan for the forces, accords acceptance of necessity (AON) to begin acquisition proposals, and grant’s its approval to all major deals through all their important phases.
- It has the power to approve any deviations in an acquisition, and recommends all big capital defence purchases for approval of the Cabinet committee on security (CCS) headed by Prime Minister.
- The composition of the DAC is-
- Defence Minister: Chairman
- Minister of State for Defence: Member
- Chief of Army Staff: Member
- Chief of Naval Staff: Member
- Chief of Air Staff: Member
- Defence Secretary: Member
- Secretary Defence Research & Development: Member
- Secretary Defence Production: Member
- Chief of Integrated Staff Committees HQ IDS: Member
- Director General (Acquisition): Member
- Chief of Integrated Defence: Staff Member Secretary
Objective
- The objective of the Defence Acquisition Council is to ensure expeditious procurement of the approved requirements of the Armed Forces in terms of capabilities sought, and time frame prescribed, by optimally utilizing the allocated budgetary resources.
The functions of the DAC
- In-principle approval of 15 Year Long-Term Integrated Perspective Plan for Defence Forces;
- Accord of Acceptance of Necessity to acquisition proposals;
- Categorization of the acquisition proposals relating to ‘Buy’, ‘Buy & Make’ and ‘Make’;
- Issues relating to Single vendor clearance;
- Decision regarding ‘offset’ provisions in respect of acquisition proposals above Rs. 300 crores;
- Decisions regarding Transfer of Technology under ‘Buy & Make’ category of acquisition proposals; and
- Field Trial evaluation.
GS- 3rd Paper
Topic– Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
Sovereign Gold Bond Scheme
Context
Sovereign Gold Bond Scheme 2019-20 (Series VI) – Issue Price
About Sovereign Gold Bond Scheme (SGB)
- Sovereign Gold Bond Scheme was launched by Govt in November 2015, under Gold Monetisation Scheme.
- Sovereign Gold Bonds are Government securities denominated in multiples of gram(s) of gold.
- They are substitute for investment in physical gold.
- RBI Notifies the terms and conditions for the scheme from time to time.
Objective
- To reduce the demand for physical gold by shifting a part of the demand for physical gold into investment in Gold Bonds.
- The main objective of the scheme is to develop a financial asset as an alternative to purchasing metal gold.
Key features of the Scheme
- Sovereign Gold Bond Bonds will be issued by RBI on behalf of govt.
- It will be sold through bank, post offices and Stock Holding Corporation of India Limited.
- Sovereign Gold Bonds will be issued on payment of rupees and denominated in grams of gold.
- Customers can buy gold bonds which will be relatable to the weight of gold.
- The bonds will be issued in various denominations for 5-7 years with a rate of interest to calculated on the value of the metal at the time of investment.
- The scheme is available only for Indian citizen and institutions.
- Capital gains tax treatment will be the same as for physical gold for an ‘individual’ investor.
- Rate of interest under the scheme will be decided by government.
- The bonds will be issued in denominations of 5,10,50,100 grams of gold or other denominations.
- Sovereign Gold Bonds can be used as collateral for loans.
Significance of the scheme
- With the Reserve Bank of India issuing these gold bonds, it brings in transparency and trust, providing an avenue wherein people can own gold without having to worry about its storage or safety.
- This scheme aims to reduce the demand for physical gold, thereby keeping a tab on gold imports and utilising resources effectively.
- Gold and crude oil have significant role in India’s widening current account deficit.
- The government, however, chose not to increase import duty on gold when it raised duty on non-essential imports to narrow the current account deficit, fearing a surge in gold smuggling.
For Prelims
MeitY Start-up Summit
Context
Union Minister of Law & Justice, Communications and Electronics & Information Technology, unveils new initiatives to mark first MeitY Start-up Summit.
About MeitY Start-up Summit
- The First MeitY Start-up Summit was held by Ministry of Electronics & Information (MeitY).
- The MeitY Startup Hub was launched.
- The Hub will facilitate the vision of the Ministry towards technology, startups, innovation and creation of intellectual properties.
- The Software Technology Parks of India will act as the nodal agency in implementing the scheme.
- The summit aims to bring the key stake holders and startups of Artificial Intelligence (AI) and Internet of Things (IoT) together.
BHIM 2.0
- Union IT Minister announced new initiatives and programs including BHIM 2.0 in MeitY Start-up Summit.
- BHIM 2.0 is a payments interface developed by National Payments Corporation of India (NPCI).
- It was established in December 2016 that allows real-time fund transfer.
- BHIM 2.0 offers additional features including increasing transaction limits with additional languages.
- New features include increasing the transaction limit, adding multiple bank accounts, offerings from shopkeepers, the option of applying for an IPO, gifting money and much more.
- BHIM 2.0 is already available in 13 languages and it will be available in three additional languages – Haryanvi, Bhojpuri and Konkani.
