Current Affairs for IAS Exams - 3 July 2017

Daily Current Affairs for IAS Exams

Current Affairs for IAS Exams - 3 July 2017

::National::

Palestine says it understands the need for India to de-hyphenate ties

India’s relations with Israel should not come at the “expense of ties” with Palestine, but the Palestinian Authority (PA) understands the need for India to de-hyphenate ties with both, says the Palestinian President’s diplomatic adviser.
Mr. Modi will travel to Tel Aviv and Jerusalem from July 4, and will be the first Indian Prime Minister to visit Israel.
However, unlike President Mukherjee, and three External Affairs Ministers Jaswant Singh (2000), S.M. Krishna (2012) and Sushma Swaraj (2016), Mr. Modi will not pay a visit to the Palestinian side.
Instead, the government had hosted Palestinian President Mahmoud Abbas in Delhi in May this year, separately signing several agreements on development assistance, and backing Palestine’s claim to a “two-state solution.”

Aerosols from vehicular exhaust may be weakening the life-giving rainy season

GHGs, are causing concern about the long-term fate of the Indian monsoon, researchers now think aerosols from vehicular exhaust, half-burnt crop residue, dust and chemical effluents may be weakening the life-giving rainy season even more than GHGs.
An Indian Institute of Tropical Meteorology, Pune, team led by climatologist R. Krishnan studying the likely monsoon impact of GHGs over the next century has come to this conclusion.
In 2015, Mr. Krishnan reported in the journal Climate Dynamics that a mix of GHGs, aerosols and changes in forest and agricultural cover was affecting the strength of the monsoon, which was known to be weakening over the last 50 years.
The scientist and his team used an upgraded forecasting model that was used this year by the India Meteorological Department for forecasts.
The model will help prepare India’s first home-grown forecast of climate change from global warming, and be part of the IPCC reports, which are considered the global scientific consensus on the role of man-made pollution in climate change.
Dust clouds shield the earth from the sun’s rays, depressing land and sea temperatures and reducing the variation between the two.
A good monsoon, which is produced by the difference in temperature between land and sea, is thus weakened by aerosol accumulation. Aerosols cause air pollution and smog and aggravate conditions such as asthma.

China has released a map to back its claim of India's intrusion

China has released a map to back its claim that Indian troops “transgressed” into the Doklam area of the Sikkim sector, which it claims as part of its territory.
In the map, released by the Chinese Foreign Ministry, a blue arrow with markings in Chinese points to Indian troops’ alleged transgression to prevent the People's Liberation Army (PLA) from building a strategic road. The map shows Doklam as part of Chinese territory.
Bhutan has protested to China asserting that the area is part of its territory and Chinese action is violative of 1988 and 1998 agreements.
The map is in addition to two photographs released purportedly showing Indian troops on the Chinese side of the border. Chinese Foreign Ministry spokesman displayed the photographs of the alleged Indian “incursion” during a media briefing.
A standoff erupted between the two militaries after the Indian Army blocked construction of the road by China in the Doklam area.
China alleged that the Indian troops “trespassed” the recognised delineated boundary on June 18. India expressed concerns over China constructing the road in the disputed area and said this had “serious” security implications.

India continue to slide in money parked by its citizens with Swiss banks ranking

India has slipped to the 88th place in terms of money parked by its citizens with Swiss banks, while the U.K. remains on the top.
Also, the money officially held by Indians with banks in Switzerland now accounts for a meagre 0.04 per cent of the total funds kept by all foreign clients in the Swiss banking system, as per an analysis of the latest figures compiled by the Swiss National Bank as on 2016-end.
India was placed at 75th position in 2015 and at 61st in the year before that, though it used to be among top-50 countries in terms of holdings in Swiss banks till 2007. The country was ranked highest at 37th place in 2004.
The latest data from the Zurich-based SNB comes ahead of a new framework for automatic exchange of information between Switzerland and India to help check the black money menace.
The funds are the official figures and do not indicate the quantum of black money.

::Business and Economy::

GST regime will be positive for India’s credit profile says Moody's

GST regime will be positive for India’s credit profile as it will contribute to productivity gains and higher GDP growth as well as support higher government revenue generation through improved tax compliance, according to global ratings agency Moody’s.
It will also support higher government revenue generation through improved tax compliance and administration adding that both would be positive for India’s credit profile, which is constrained by a relatively low revenue base.
We expect improved tax compliance to be driven by: incentivisation of tax credits in a GST system; greater ease of compliance through usage of a common, shared IT infrastructure between the central government and the states.
And a reduction in the overall cost of compliance from simplified tax rates, uniform across the country. We expect the net impact of GST on government revenues to be positive.
Premier industry body Confederation of Indian Industry said the Indian industry was prepared for the rollout of the GST, adding that the regime will contribute to ease of doing business and accelerate new business ventures.

Various sectors reaction to Goods and Services tax

With India moving towards its biggest tax reform, here’s how various sectors in India have reacted to the implementation of the Goods and Services Tax (GST) and how it will impact business.
Following the implementation of the GST, the hospitality and travel sectors expect teething issues in the first few months but are not unduly worried, expecting support from government.
However, the Federation of Hotel and Restaurant Associations of India vice president, Garish Oberoi, said the 28% GST for hotel rooms with a tariff of Rs. 7,500 per night and above is very steep.
He asked the government to keep that rate only for rooms with tariff of Rs. 10,000 per night and above. For the travel sector, the GST rate for tour packages has increased marginally from 4.5% to 5%.
The Federation of Indian Export Organisations (FIEO) has approached the government to reduce the restrictions on using duty credit scrips — a pass that allows holders to import goods by not paying a certain amount in import duties.
But with the implementation of GST, these scrips can now be utilised only for payment of basic customs duty and not Integrated Goods and Services Tax.
Earlier, manufacturing exporters who imported raw material for export purposes were allowed to utilise these scrips for payment of customs, excise duty and service tax.
The steel sector is feeling bullish after the GST rollout. Players in the sector said that with GST, unorganised players will have to move to the organised form of doing business.
Steel Users Federation of India has said GST has abolished the special additional duty on imported goods which was a very cumbersome procedure.
The cotton textile industry is also feeling positive. Southern India Mills Association chairman M. Senthil Kumar has welcomed the move to bring the entire cotton textile value chain at the lowest slab rate of 5% GST.

Over a dozen companies have raised more than Rs. 12,000 crore through IPO

In a blockbuster performance, over a dozen companies have raised more than Rs. 12,000 crore through initial public offerings in the first half of the year, a surge of 73% from the year-earlier level.
Moreover, the outlook appears to be bullish for the remaining part of 2017 as several high-profile names, including UTI Mutual Fund and SBI Life, are expected to launch their initial public offers to raise Rs. 35,000 crore in the coming months.