Current Affairs for IAS Exams - 14 March 2017

:: National ::

Restrictions on cash withdrawals, which came into effect from November 9, 2016, following the ban on high-value currency notes, were lifted. The RBI announced the easing of curbs during its bimonthly monetary policy review on February 8.
While the limits on current accounts were lifted earlier, restrictions on savings account deposits were lifted. Though there will be no limit on cash withdrawals, currency in circulation is still far below the pre-November 8, 2016, levels.
Following the decision to withdraw the legal tender status of Rs. 500 and Rs. 1,000 notes, 86.9% of the currency in circulation was rendered invalid, amounting Rs. 15.4 lakh crore.
According to RBI data, the currency in circulation till the week ended March 3 was Rs. 11,984.1 billion which is 67% of the currency in circulation, pre-demonetisation.
The decision to withdraw high value notes was aimed at eliminating corruption, black money, counterfeit currency and terror funding.
According to a recent study by the Reserve Bank of India staff in the monetary policy department, about 78% of all consumer payments in India are effected in cash.
“It was, therefore, obvious that currency squeeze during the demonetisation period would have had some adverse impact on economic activity, although such impact was expected to be transient,” the study observed.

China hoped the admission of India and Pakistan into the Beijing-led Shanghai Cooperation Organisation (SCO) security grouping will contribute to security and stability in the region.
Currently, all sides are going through relevant legal procedures in accordance with the Memorandum of Obligations signed at last year’s SCO summit at Tashkent to admit India and Pakistan, Chinese Foreign Ministry spokesperson said.
“Both India and Pakistan are China’s important neighbours and important countries in South Asia. China hopes that India and Pakistan can enhance mutual trust and improve relations through more dialogues,” she added.

China is set to rapidly expand its marine corps and the Navy in anticipation of the development of its Maritime Silk Road (MSR), which covers the Pakistani port of Gwadar, and Djibouti in the Horn of Africa.
Some of the Chinese marines would be stationed at Djibouti in the Horn of Africa, and the Pakistani port of Gwadar, the starting point of the China-Pakistan Economic Corridor.
Besides its original missions of a possible war with Taiwan, maritime defence in the East and South China seas, it’s also foreseeable that the PLA Navy’s mission will expand overseas.
It includes protection of China’s national security in the Korean peninsula, the country’s maritime lifelines, as well as offshore supply deports like in Djibouti and Gwadar port in Pakistan.
The SCMP report said that two brigades of special combat soldiers had already been moved to the marines, nearly doubling its size to 20,000.

India Ratings (Ind-Ra) has maintained a stable outlook for cotton textiles for the next financial year following steady input prices, healthy capacity utilisation and healthy domestic demand.
The agency has revised its cotton outlook to stable for fiscal year 2017-18 from negative for the fiscal year 2016-17.
The status will stem from fiscal incentives and implementation of the Goods and Services Tax (GST) that will improve the industry’s export competitiveness, Ind-Ra said.
Favourable trade agreements with the U.S. and Europe will also lead to a significant increase in India’s exports and a higher-than-expected domestic demand would be positive for the sector, it added.
Moreover, Ind-Ra said, the U.S.’ exit from the Trans-Pacific Partnership is likely to realign textile trade and investments, which were diverted to Vietnam over FY16-FY17, towards the Indian subcontinent.
The stable cotton outlook is in view of an increase in acreage, a rise in supply in the first quarter of FY18 (due to demonetisation) and a decline in global inventory assisting with a balanced supply, Ind-Ra said.
It also expects operating profitability levels of Indian cotton ginners and exporters to moderate in FY18.

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