1. MeitY Startup Hub, Meta to launch program to accelerate XR technology startups in India
Tags: National Economy/Finance National News
The Ministry of Electronics and Information Technology (MeitY) will launch a program to support and accelerate XR technology startups across India in collaboration with Startup Hub META.
IMPORTANT FACTS -
- This collaboration is part of the government's efforts to skill in emerging and futuristic technologies.
With a large talent pool of creators, developers and a vibrant technology ecosystem, India has the potential to play a significant role in the metaverse.
MeitY Startup Hub, an initiative of MeitY, is a national platform focused on promoting technology innovation, start-ups and creation of intellectual property.
Currently, it has over 3,000 tech startups, with the expectation of growing to over 10,000 startups in the next three to five years.
Minister of Electronics and IT - Ashwini Vaishnaw
2. India joins 3 pillars of the US led Indo-Pacific Economic Framework (IPEF)
Tags: Economy/Finance International News
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India has decided not to join the trade pillar of the United States-led Indo-Pacific Economic Framework (IPEF) for now but has agreed to join the other three pillars: supply chains, tax and anti-corruption and clean energy.
IMPORTANT FACTS -
- This was declared by the Union Commerce and Industry Minister Piyush Goel at the end of the trade ministers first in person meeting of the IPEF, held in Los Angeles, United States on 9 September 2022.
Why India has not joined the Trade pillar :
- The Minister said that the trade pillar which deals with trade requires commitment of the member countries on environment, labour, digital trade, and public procurement.
- He said that India is not certain what benefit it will get by joining this trade pillar.
- He expressed the fear that the trade pillar may set high standards of compliance which may discriminate against the developing countries.
- Giving an example he said that the United State has set a high standard on environment protection which is applicable on the energy companies. It has set stringent norms for power plants so that they are low polluting and more environment friendly. This mandates investment in new technology which makes the power produced costly.
- If India follows the US standards then it will adversely impact India’s economic development. India needs cheap power so that it is accessible to all. It cannot afford costly powers.
- Similar concerns are also there in the field of labour, digital trade, and public procurement.
3. Gadkari calls for joint effort to achieve 5 trillion dollar economy goal
Tags: place in news Economy/Finance Summits Person in news State News
While addressing the 41st Meeting of the Transport Development Council at Bengaluru ,Karnataka on 9 September 2022 ,Union Minister for Road Transport and Highways Nitin Gadkari said that both the Centre and the States should work together to transform the transport sector.
IMPORTANT FACTS -
- The 41st Transport Development Council meeting was held as part of the 3 day ‘Manthan’ organised by the Union Ministry of Road Transport and Highways at Bengaluru.
- Gadkari said that” In the next five years, both the Centre and the states should work together to transform the transport sector of the country to become a five trillion-dollar economy,”
- In 2019, Prime Minister Narendra Modi envisioned making India a $5 trillion economy and global powerhouse by 2024-25.
- He further said that efforts should be made to increase the automobile industry from 7.5 lakhs crore to 15 lakhs crore in the next 5 years enabling India as a top automobile manufacturing hub in the world.
- Ministers of Transport from Uttar Pradesh, Madhya Pradesh, Uttarakhand, Himachal Pradesh, Manipur, Goa, Karnataka, Delhi and Tamil Nadu participated in the 41st Transport Development Council.
4. Indian origin Devika Bulchandani appointed as the Global CEO of Ogilvy
Tags: Economy/Finance Person in news International News
The leading global advertising and public relations agency Ogilvy has named India-born American citizen Devika Bulchandani as its Global Chief Executive Officer. Ogilvy is part of the London based British multinational company WPP.
IMPORTANT FACTS -
- The Amritsar born 53 years old Bulchandani is the latest in a number of Indian origin persons taking leadership positions in multinational companies.
- Last week coffee giant Starbucks appointed Laxman Narasimhan as its chief executive.
- The list includes Microsoft CEO Satya Nadella, Adobe CEO Shantanu Narayen, Alphabet CEO Sundar Pichai, Twitter head Parag Agrawal, Leena Nair from Chanel, IBM Group CEO Arvind Krishna, Bata CEO Gunjan Shah, and Novartis CEO Vasant Narasimhan.
5. NTPC to Supply Renewable Power to Army’s Western command for next 27 years
Tags: place in news Economy/Finance Defence
India’s largest power company NTPC has signed a long term agreement with the Army’s Western Command to supply 25 MW/year of solar power from the national solar grid of the country for the next 27 years.
IMPORTANT FACTS -
- This is the first agreement by the Indian Armed Forces for sourcing power from renewable energy sources,” said NTPC in a Twitter post.
- The Memoranda of Understanding (MOU) was signed at Western command headquarters, Chandimandir, Haryana on 8 September 2022.
- According to a statement issued by the Western Command, the new move will decarbonize upto 38 percent of the energy portfolio of Western Command, apart from accruing a substantial savings to the exchequer.
- The solar energy will be sourced from Sholapur in Maharashtra.
NTPC Renewable energy capacity :
- Presently, NTPC has 2.3 GW of commissioned renewable capacity.
- The NTPC Group plans to achieve 60 Giga Watt of renewable energy by 2032.
- NTPC recently commissioned India’s largest floating solar plant at Ramagundam, Telangana. It is a 100 MW plant.
ADDITIONAL INFORMATION -
Command structure of the Indian Army :
- The Headquarter of the Indian Army is at New Delhi with the President being the Commander in Chief of the Army.
- Headquarters of the Indian Army: New Delhi
- Chief of Army Staff: General Manoj Pande
- The Indian Army has 6 operational commands and one Training command. Each command is headed by a General Officer Commanding in Chief with the rank of Lieutenant General.
Command | Headquarters |
Western Command | Chandimandir (Haryana) |
Eastern Command | Kolkata (West Bengal) |
Southern Command | Pune(Maharashtra) |
Northern Command | Udhampur(Jammu ) |
Central Command | Lucknow (Uttar Pradesh) |
South -Western Command | Jaipur (Rajasthan ) |
Army Training Command | Shimla(Himachal Pradesh) |
Army Day is observed on 15 January every year.
6. India bans export of broken rice and impose 20% duty on non-basmati rice
Tags: Economy/Finance
The Directorate General of Foreign Trade (DGFT) under the Union Ministry of Commerce and Industries has issued a government notification banning the export of broken rice on 8 September 2022. Earlier in the day the Finance Ministry imposed a 20% duty on the export of non-basmati rice except for parboiled rice.
Both the decisions are effective from 9 September 2022.
IMPORTANT FACTS -
Why this has been done by the government ?
- Government hopes that these steps will increase the availability of rice in India and curb the rise in the price of rice which is a staple diet for many Indians.
- According to the Agriculture Ministry, the area under the paddy crop has been down by 5.62 per cent to 383.99 lakh hectare in the ongoing Kharif season (2022-23) so far due to deficiency in monsoon rainfall in key growing states of West Bengal, Bihar, Jharkhand and Uttar Pradesh.
- West Bengal is the largest rice producing state in India followed by Uttar Pradesh and Punjab.
- According to the 4th Agricultural advance estimates of the Agricultural ministry, in the 2021-22 agricultural season (July-June) the estimated rice production in India is 130.29 million tonnes.
- However the rice production in the next crop year (2022-23) could decline by around 10 million tonnes.
India a major rice exporter :
- India is the second largest producer of rice in the world after China.
- However it is the largest exporter of rice in the world with a 40% share in the world rice market. Thailand, Vietnam and Pakistan are the other major exporters of rice in the world.
- In terms of volume, Bangladesh, China, Benin and Nepal are five major export destinations of Indian rice.
- The country exported 21.2 million tonnes of rice in 2021-22, of which 3.94 million tonnes were basmati rice. It exported non-basmati rice worth USD 6.11 billion in the same period.
ADDITIONAL INFORMATION -
Impact on the world :
- The decision of India has contributed to the immediate rise in the price of rice in the world market. It has also affected the price of wheat and maize in the international market as rice importing countries are expected to shift to maize and wheat.
- China and the Philippines will be immediately affected by the Indian decision.
- China is the largest buyer of the broken rice from India which is used as animal feed in the country. Both China and the Philippines will have to buy rice from other sources at higher prices or shift to other crops.
- Thailand and Myanmar will benefit from the Indian decision as the buyer of India will shift to these countries.
7. India ranks 132nd out of 191 in UNDP's human development index
Tags: Economy/Finance International News
According to the United Nations Development Program (UNDP) report released on 8 September, India is ranked 132 out of 191 countries in the Human Development Index (HDI) 2021.
Switzerland tops the rankings, followed by Norway at second and Iceland at third.
South Sudan, Chad and Niger are at the bottom of the HDI scale.
IMPORTANT FACTS -
- In the 2020 report, India had ranked 131st among 189 countries.
The report said that nearly 90 percent of countries have reported a decline in their HDI rankings in 2020 or 2021.
Among India's neighbours, Sri Lanka (73rd), China (79th), Bangladesh (129th), and Bhutan (127th) rank above India, while Pakistan (161st), Nepal (143th) and Myanmar (149th) rank worse.
India's latest HDI value is 0.633 which places the country in the medium human development category, lower than its value of 0.645 in the 2020 report.
The reason for the decline in the ranking of more than 90 percent of the countries is the Covid-19 pandemic.
The report raises concerns over growing polarization that is eroding democratic freedoms and human rights in many parts of the world.
Gender Inequality :
The COVID-19 pandemic has also exacerbated gender inequality, which has risen by 6.7% globally.
India has shown a slight improvement in its Gender Inequality Index value in the latest report as compared to the 2020 index (0.490 vs 0.493).
The index measures inequality between women and men in three dimensions – reproductive health, empowerment and the labour market.
ADDITIONAL INFORMATION -
About Human Development Index :
The United Nations Development Program (UNDP) published its first Human Development Report (HDR) in 1990.
The report attempts to define and measure the level of development of economies.
Three indicators of Human Development Report (HDR)
Health - Measured by the life expectancy at birth
Education - Measured by the mean of years of schooling
Standard of Living - Measured by GNI (Gross National Income/Product) per capita at ‘Purchasing Power Parity
8. India Ideas Summit held in New Delhi
Tags: place in news Economy/Finance Summits
The U.S.-India Business Council India (USIBC) organised its 47th Annual General Meeting and the India Ideas Summit from 6-7 September 2022 at New Delhi.
IMPORTANT FACTS -
- The focus of the summit was on “Maximizing the Next 75 years of US-India Prosperity.
- The USIBC India Ideas Summit and Annual General Meeting has been an important platform for U.S.-India dialogue on commercial and strategic cooperation for over 47 years.
- This year's summit saw the participation of top government speakers such as Minister of External Affairs Subramanyam Jaishankar, Minister of Finance Nirmala Sitharaman, Minister for Education Dharmendra Pradhan and from the American government , Jennifer Granholm, Secretary of Energy, Donald Lu, Assistant Secretary of State for Central and South Asia Affairs.
What does USIBC does ?
- U.S.-India Business Council India (USIBC) is a business lobby group representing American and Indian business to make business between the United States and India easier, more efficient, and more profitable.
- USIBC facilitates meetings between members and key policymakers in the U.S. and Indian governments,
- USIBC President: Atul Keshap(He is an American)
9. HDFC BANK to give Personal loan within 10 seconds
Tags: Economy/Finance
The largest private sector bank in India, HDFC Bank will provide unsecured personal loans to customers within 10 seconds.
These loans will be provided to even those customers who don't have a bank account with the banks.
HDFC bank is the first bank in India to offer such facilities. However it is sanctioned to customers who have been pre-approved for loans by the bank.
The 10 second loans will target the self-employed persons.
IMPORTANT FACTS -
Personal loans :
- It is a type of unsecured loan offered by the financial institutions like banks, NBFC etc.
- Unsecured loans means that there is no collateral or security against the loan. It means the customer has no need to keep property or any asset as a guarantee to the bank.
- The unique feature of the loan is that it can be used for any purpose. Normally a loan provided by the bank is for a particular purpose like home loan can be used only for buying a house, car loan for buying a car etc.,
- In the personal loan bank do not ask for what purpose the loan amount is to be used by the customer.
ADDITIONAL INFORMATION -
HDFC Bank :
- It is India’s largest private sector bank in India. It has been promoted by Housing Development Finance Corporation (HDFC) ‘
- It commenced its operation in January 1995.
- CEO: Sashidhar Jagdishan
- Headquarters: Mumbai
- Tagline: We Understand Your World
10. SEBI fines Rana Kapoor Rs 2 Crore in the Yes Bank AT-1 Bond case
Tags: Economy/Finance Person in news
The Securities and Exchange Board of India (SEBI) has imposed a penalty of Rs 2 crore on the former Yes Bank managing director and chief executive officer, Rana Kapoor, in the tier-I bond mis-selling or AT-1 case involving the private lender on 7 September 2022.
IMPORTANT FACTS -
Why was it fined ?
- Yes Bank was found guilty by SEBI of selling the AT-1 bonds as Super FD (Fixed Deposit ) to the customer promising higher return and safety .
Penalty amount for others :
- SEBI imposed a monetary penalty of Rs 25 crore on Yes Bank, Rs 1 crore on Vivek Kanwar and Rs 50 lakh each on Ashish Nasa and Jasjit Singh Banga. Kanwar was the head of Yes Bank’s private wealth management team. The other two were his team members.
What is Additional Tier-1(AT-1) Bonds ?
- Under the Basel 3 norms the bank's regulatory capital has been divided into Tier-1 and Tier 11 capital.
Tier 1 Capital :
- Tier 1 Capital has been subdivided into Common equity capital 1 and Additional Tier 1
- Common equity capital consists of ordinary equity shares issued by the banks and on which banks can pay dividends.
- Additional Tier 1 capital consists of perpetual bonds which have no maturity date and carry interest rates.
- It is risky in the sense that if the bank's capital ratio falls below a minimum prescribed level then the banks can stop paying interest or cancel the bonds causing loss to the depositors.
- This what ultimately happened to the yes bank investor who bought these AT-1 bonds sold as Super FD by the bank .The Yes Bank stopped paying interest on these bonds and ultimately it was written off when the bank faced financial crisis.
- Tier 11 capital consists of unsecured subordinated debts with a maturity of at least five years.
ADDITIONAL INFORMATION -
SEBI :
- Securities Exchange Board of India (SEBI) was set up on 12 April 1988 and it was given statutory status by the SEBI Act 1992 on 30 January 1992.It comes under the Ministry of Finance, Government of India.
- It is the regulator of the Capital market and Commodities market in India.
- The first SEBI chairman was Dr S A Dave (1988-90)
- Madhabi Puri Buch is the current and 10th Chairperson of the SEBI.
- Headquarters: Mumbai
