Weekly Current Affairs (8th to 14th June 2024) | Current Affairs: Daily, Weekly & Monthly - CLAT PDF Download

India Exim Bank and East Africa Trade

India Exim Bank Nairobi Office

• India Exim Bank has opened a new office in Nairobi, Kenya to enhance trade with East Africa, aiming to strengthen ties in a region abundant in resources and young population.

Growth in India-East Africa Trade

• Trade between India and East Africa has surged from USD 9.7 billion in 2013 to USD 12.9 billion in 2022, with India's exports to East Africa increasing from USD 8.6 billion to USD 9.4 billion during the same period.

India Exim Bank's Role and Activities

• India Exim Bank, the nation's primary financial institution, supports India's foreign trade and investments, aiding in policy-making, project funding, and economic diplomacy to foster better trade relations.

Socio-Economic Impact in Africa

• India Exim Bank has provided over 200 Lines of Credit exceeding USD 12 billion to 42 African nations, fueling social and economic progress through infrastructure development, job creation, and industry promotion.

About Export-Import Bank of India

• Established in 1982, Exim Bank of India promotes exports by offering financial aid, headquartered in Mumbai, facilitating loans for exporters, infrastructure projects, and buyer's credit, bolstering international trade ties.

India's Foreign Exchange Reserves Record

• India achieved a historic milestone with its foreign exchange reserves reaching $651.5 billion by May 31, 2024, marking the highest amount ever held.
• Positive shifts in trade, remittances, and foreign investments have significantly bolstered India's external economic strength.

Factors Boosting Foreign Exchange Reserves

Exports of Software and Other Services:

• The Reserve Bank of India noted a substantial growth in service exports, particularly in software, business services, and travel sectors.
• Net service exports surged by 9.3% in comparison to the previous quarter, following a 4.2% growth in the fourth quarter of 2023–24.

Global Capability Centers (GCCs):

• The RBI Governor highlighted the importance of GCCs in boosting software and business services exports, leading to increased inflow of foreign currency into India.
• The influx of foreign currency from GCC countries is projected to rise significantly from 1,580 in 2022–23 to around 1,900 by 2024–25.

Remittances:

• India is anticipated to receive 15.2% of global remittances in 2024, solidifying its position as the world's largest recipient of remittances.
• Remittances exceeded $100 billion in the initial nine months of FY 2023–24.

Trade and Current Account Deficit:

• The trade deficit has lessened due to robust growth in services and substantial remittance transfers, resulting in a milder current account deficit.
• Projections suggest that the current account deficit will remain manageable throughout the fiscal year 2024–25.

Investment Flows and External Financing:

• Foreign Portfolio Investment (FPI):
  • India received a net inflow of $41.6 billion in FPI in 2023–24, but experienced net losses of $5 billion by June 5, 2024.

Foreign Direct Investment (FDI):

• Although net FDI slowed down, gross FDI entries remained strong in 2023–24, with India retaining its position as the top destination in the Asia-Pacific region for new FDI.

External Commercial Borrowings (ECBs) and Non-Resident Savings:

• Both ECBs and non-resident savings witnessed an increase compared to the previous year, with a significant rise in the number of ECB deals between 2023 and 2024.

How Will Pakistan Resolve Tax Policy Disagreements?

Pakistan and the International Monetary Fund (IMF) are in disagreement over proposed tax policy changes during recent discussions.

Main Points of Disagreement:

• Combining income tax rates for salaried and non-salaried individuals.
• Implementing a single 18% sales tax on food and medical supplies.

Key Issues in Negotiations

Differences revolve around:
Income Tax for Salaried and Non-Salaried Individuals:

• IMF proposes raising the maximum income tax rate from 35% to 45% for those earning above Pakistani Rs 467,000 monthly.
• Impact on both salaried and non-salaried groups.
• Contradicts Pakistan's plan of maintaining a 35% top rate for salaried workers.
• Taxation of Exporters: Consensus on increasing taxes for exporters.
• Sales Tax on Essentials: Government opposes a flat 18% sales tax on items like fertilizers, pesticides, seeds, and healthcare products due to inflation concerns.

Implications for Individuals and Sectors

Expected impacts:

• Lower and middle-income groups might face higher taxes under new slabs, affecting middle-income individuals the most.
• Health and Agriculture Sectors: Increased costs for vital farming and medical supplies.
• Salaried Individuals: Higher tax burden may necessitate significant pay raises.

Negotiation Outlook and Economic Pressures

Current status and future steps:

• IMF urging Pakistan to propose alternative solutions to reduce tax burdens.
• Upcoming talks aimed at reaching a compromise.
• Pakistan under pressure to secure IMF loan, aiming to conclude discussions by fiscal year end.

What Is the Importance of the High Seas Biodiversity Treaty?

Importance of the High Seas Biodiversity Treaty

• On World Oceans Day, the Director General of the International Union for Conservation of Nature (IUCN) highlighted the significance of making the High Seas Biodiversity Treaty a reality.
• The treaty aims to establish regulations and safeguard individuals in the vast expanses of the High Seas, which lack comprehensive legal frameworks.

Current Status of the Treaty

• The BBNJ Agreement was endorsed by governments in September 2023 and became open for signatures.
• While 90 countries have signed the treaty by mid-2024, only seven have completed the ratification process necessary for it to be internationally enforceable.

The Ratification Challenge

• For the treaty to take effect, a minimum of 60 countries must agree to it, posing a significant obstacle due to the slow ratification progress.
• It is crucial for more nations to move from signing the treaty in principle to formally ratifying it, as emphasized by Aguilar.

Associated Challenges and Calls for Action

• In addition to advocating for the treaty, Aguilar addressed linked environmental concerns such as unsustainable fishing practices and the proposed prohibition of deep-sea mining, both detrimental to marine ecosystems.
• She emphasized the necessity of advocating for the preservation of the world's ocean resources from scientific, legal, and ethical perspectives.

How Will Quantum Technology Help Find Water Worlds?

NASA scientists at the Jet Propulsion Laboratory have developed advanced quantum technology tools to search for "water worlds" in the solar system.

• This technology is vital as there is a growing interest in locating drinkable water on other planets, potentially harboring alien life forms.

The Quest for Extraterrestrial Liquid Water

• Searching for extraterrestrial life has long been guided by the mantra "Follow the Water," with astrobiologists prioritizing the study of flowing water as a prerequisite for life.
• Moons like Enceladus and Europa, believed to have vast oceans beneath their icy surfaces, present promising research targets for future missions.

Challenges in Water Detection

• Conventional tools such as cameras and radar are inadequate for penetrating the thick ice layers covering moons like Enceladus and Europa, necessitating alternative detection methods.
• Until missions capable of drilling through the ice are feasible, scientists must explore innovative approaches to unveil these hidden oceans.

Groundbreaking Features of Quantum Sensors

• NASA's Jet Propulsion Laboratory highlights that the latest quantum tools not only facilitate new discoveries but are also more compact and cost-effective.
• These advancements enable the utilization of smaller platforms like CubeSats for high-level scientific exploration, with spin-nuclear quantum interactions ensuring sustained accuracy crucial for space missions.

About Water Worlds

• Water worlds, or ocean planets, are celestial bodies predominantly covered by water, potentially featuring extensive, deep oceans unlike Earth's comparatively shallow seas.
• Kepler-22b, located approximately 600 light years away, represents a candidate for a water world hosting a global ocean, possibly fostering unique life forms adapted to high-pressure, low-temperature environments.
• Extreme pressures in these deep oceans could inhibit conventional life forms' development while supporting the emergence of distinct organisms adapted to harsh conditions, including the formation of "Ice VII" at great ocean depths.

PM Modi Sanctions 17th PM-KISAN Instalment, Aiding 9.3 Crore Farmers

PM Modi Sanctions 17th PM-KISAN Instalment, Aiding 9.3 Crore Farmers

• Prime Minister Narendra Modi, upon re-election, approved the 17th installment of the PM-KISAN plan, benefiting 9.3 crore farmers with an estimated Rs 20,000 crore.

What is the PM-KISAN Scheme?

• The PM-KISAN initiative, initiated in 2019, supports eligible farmer families across India with Rs 6,000 annually, distributed in three equal installments.

Impact of the Scheme

• The PM-KISAN plan aims to provide direct income support to farmers, enhancing their livelihoods and productivity by aiding them in purchasing farming essentials.

Government's Commitment and Budget Allocation

• Prime Minister Modi reaffirmed the government's dedication to farmers' welfare, allocating Rs 1.27 lakh crore to the Ministry of Agriculture for the fiscal year 2024-25.

More About PM Kisan Nidhi Scheme

• The PM Kisan Nidhi plan, introduced in 2019, supports small and marginal farmers with financial assistance, with beneficiaries receiving Rs 6,000 yearly in three equal parts.

Apple Unveils Apple Intelligence at WWDC 2024

Apple Intelligence, a revolutionary AI technology, was demonstrated at the 2024 Worldwide Developers Conference on June 11. This AI platform is designed to work seamlessly across all Apple products such as iPhone, iPad, and Mac, aiming to enhance user experience by providing personalized information while ensuring user privacy.

What is Apple Intelligence?

• The Apple Intelligence system serves as a personalized intelligence system utilizing generative AI and user-specific data to offer tailored answers and features. It adapts to individual habits, preferences, and schedules, enhancing the productivity and enjoyment of Apple devices.

Deep Integration across Platforms

• The new AI system is compatible with iOS 18, iPadOS 18, and MacOS Sequoia, leveraging the robust Apple Silicon for processing and creating text and graphics across various applications while remaining attentive to the current context.

Privacy and Security

• The Private Cloud Compute (PCC) represents a cutting-edge system that Apple claims is the most secure for cloud-based AI operations, serving as the foundation of Apple Intelligence. This model combines on-device processing with cloud-based processes, safeguarding user data through robust security measures.

Capabilities of Apple Intelligence

• Writing Tools: Comprehensive tools facilitating writing, editing, and summarizing tasks across all applications, enhancing communication clarity and appropriateness.
• Email Management: Features like Priority Messages and Smart Reply streamline email interactions by organizing messages based on importance levels and suggesting potential responses.
• Creative Expressions: Utilities such as Image Playground and Genmoji empower users to swiftly craft personalized images and emojis, enriching digital expression.

Future Availability

• Apple Intelligence functionalities can be explored in the latest iterations of Apple's operating systems, initially accessible to developers. The complete public release is scheduled to coincide with the launch of the iPhone 16 in September 2024, enabling a broader audience to leverage these innovative features.

What Will Be Discussed at G7 Summit?

• The G7 Leaders' Summit is happening in Italy's Apulia region from June 13th to 15th, 2023.
• The G7 countries are Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States.
• The group deals with global challenges like geopolitical conflicts, climate change, and technological impacts.

Evolution and Challenges to G7's Relevance

• Initially focused on economic policies, the G7 now addresses broader global issues.
• Questions arise about the group's necessity due to the changing world economy.
• Suggestions for a more inclusive grouping like the G20 have been made.

Agenda for the 2024 G7 Summit

• Key topics for the 2024 G7 Summit include stabilizing the global economy, combatting climate change, enhancing global health systems post-COVID-19, and managing political tensions, particularly with China and Russia.
• Discussions will also revolve around regulating new technologies for positive societal and economic growth.
• The G7 remains influential in shaping international policies and addressing global challenges despite criticisms.

Origins of the G7

• The G7 originated from a significant 1973 meeting in Paris to address the oil crisis, inflation, and the collapse of the Bretton Woods system.
• This meeting established a platform for major industrial democracies to collaborate on economic strategies.
• The official G7 meetings began in 1975 with six countries and expanded to include Canada in 1976 and the European Union in 1977.