Tag Wise Current Affairs
Tag: World Economy
US-Canada move to WTO against India for MSP under-reporting of five pulses
Tags: World Economy
Published on: 16 February 2019
US to withdraw preferential trade treatment to India
Tags: World Economy, External Sector
Published on: 06 March 2019
Guatemala files complaint over India’s sugar subsidies at WTO
Tags: World Economy, Agriculture
Published on: 26 March 2019
India highest recipient of remittances in 2018: World Bank
Tags: World Economy
Published on: 09 April 2019
India needs to bolster level of capitalisation of state-owned banks: IMF
Tags: World Economy
Published on: 12 April 2019
US, Singapore, Taiwan seek to join consultations in WTO dispute over India's tariffs on ICT goods
Tags: World Economy
Published on: 24 April 2019
India projected to grow at 7.1% in FY20: UN-WESP Report
Tags: World Economy
Published on: 22 May 2019
India-China IT and DT Industry Cooperation Forum held in China
Tags: World Economy
Published on: 29 May 2019
US to ease curbs on Iran and Venezuela to boost oil supply
Tags: World Economy
Published on: 14 March 2022
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'title' => 'US-Canada move to WTO against India for MSP under-reporting of five pulses',
'description' => '<p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">United States and Canada have jointly approached World Trade Organisation (WTO) against India for allegedly under-reporting market price support (MSP) for five varieties of pulses viz. chickpeas, black matpe, pigeon peas, mung beans and lentils. In this regard, they have submitted counter notification with their own steeper calculations for scrutiny of members in WTO Committee on Agriculture (COA).</span></span></span></p>
<p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-family:"Quicksand",serif">US-Canada accusations against India</span></strong></span></span></p>
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<li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">They have issues with regard India’s quantity of production used in MSP calculations, lack of information necessary to assess WTO compliance, problems with currency conversions and prices used in calculations.</span></span></span></li>
<li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">Based on their calculations based on WTO Agreement on Agriculture (AoA) methodology, it was found that India has substantially underreported its market price support for these five pulses.</span></span></span></li>
<li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">India's MSP for each of these pulses far exceeded its allowable levels of trade-distorting domestic support under WTO’s existing limits. </span></span></span></li>
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<p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-family:"Quicksand",serif">WTO Committee on Agriculture (COA)</span></strong></span></span></p>
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<li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">It oversees implementation of WTO Agriculture Agreement (WTO). It provides members with opportunity to share information on implementation of their commitments.</span></span></span></li>
<li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">It also monitors implementation of number of decisions agreed at WTO's Ministerial Conferences especially in domain of export subsidies and agricultural trade, net-food importing developing countries, market access in agricultural trade and public stockholding for food security purposes.</span></span></span></li>
<li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">In its meetings, members can ask each other questions about “notifications” shared by other members and may raise concerns about each other's agricultural policies.</span></span></span></li>
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<p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-family:"Quicksand",serif">Generalised System of Preferences (GSP)</span></strong></span></span></p>
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<li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">It is preferential tariff system extended by developed countries to developing countries. It also known as preference receiving countries or beneficiary countries. It was introduced in 1976. </span></span></span></li>
<li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">It is preferential arrangement in sense <em>that it allows concessional low or zero tariff imports from developing countries.</em> </span></span></span></li>
<li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">Developed countries including US, EU, UK, Japan etc gives GSPs to imports from developing countries.</span></span></span></li>
<li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">It is designed to promote economic development by allowing duty-free entry for thousands of products from designated beneficiary countries both developing and developed countries.</span></span></span></li>
<li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-family:"Quicksand",serif">Objective of US-GSP:</span></strong><span style="font-family:"Quicksand",serif"> (i) Give development support to poor countries by promoting exports from them into developed countries. (ii) Promote sustainable development in beneficiary countries by helping these countries to increase and diversify their trade with US.</span></span></span></li>
<li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-family:"Quicksand",serif">Criteria for US:</span></strong><span style="font-family:"Quicksand",serif"> Providing US with equitable and reasonable market access, respecting arbitral awards in favour of US citizens or corporations, providing adequate and effective intellectual property protection, combating child labour and respecting internationally recognised worker rights, among others.</span></span></span></li>
<li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-family:"Quicksand",serif">Benefits:</span></strong><span style="font-family:"Quicksand",serif"> Under it, wide range of industrial and agricultural products originating from certain developing countries are given preferential access to US markets. </span></span></span></li>
<li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">In India’s case, GSP enables duty-free entry of 3,500 goods in US markets, which benefits exporters of agriculture, textiles, engineering, gems and jewellery and chemical products. </span></span></span></li>
<li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">Total US imports under GSP in 2017 was $21.2 billion, of which India was largest beneficiary with $5.6 billion, followed by Thailand ($4.2 billion) and Brazil ($2.5 billion). </span></span></span></li>
</ul>
<p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-family:"Quicksand",serif">Impact on India</span></strong></span></span></p>
<p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">Bilateral trade between India and US stood at $74.5 billion in 2017-18. US has trade surplus of $27.3 billion. Terminating GSP status will put to end duty-free import of around 1900 goods from India into US. It will be strongest punitive action taken by President Donald Trump against as part of agenda of reducing US deficit with large economies.</span></span></span></p>
<p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">According to Government, this withdrawal will not have any major impact on overall Indian exports to US as concessions availed under this scheme were minimal. Total GSP benefits availed by India under GSP programme were to tune of $190 million on trade $5.6 billion. So, benefits both in absolute sense, and as percentage of trade involved, are very minimal and moderate.</span></span></span></p>
<p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-family:"Quicksand",serif">Background</span></strong></span></span></p>
<ul>
<li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">Withdrawal of GSP beneficiary status to India comes after over year of back-and-forth between two countries over trade issues. </span></span></span></li>
<li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">The high tariffs imposed by India US goods has been contentious issue between two countries in past few years especially after Donald Trump became President.</span></span></span></li>
<li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">Trump administration is demanding for relaxation in norms for exports of its medical devices and dairy products which India has denied. </span></span></span></li>
<li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">This has led Donald Trump, who has resolved to reduce trade deficit of US with other countries (including India), to announce withdrawal of GSP status from India.</span></span></span></li>
<li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">US goods and services trade deficit with India was $27.3 billion in 2017. The withdrawal of the status may reduce this gap.</span></span></span></li>
</ul>
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'tag' => 'World Economy',
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'id' => (int) 437,
'title' => 'India ranks 11th in gold holding: WGC',
'description' => '<p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">According to latest report by World Gold Council (WGC), India is 11th largest gold reserve, with the current holding pegged at 607 tonnes. India is however, world’s largest consumer of gold.</span></span></span></p>
<p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-family:"Quicksand",serif">Highlights of WGC report </span></strong></span></span></p>
<ul>
<li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-family:"Quicksand",serif">Top 10 Possessors of Gold reserves: </span></strong><span style="font-family:"Quicksand",serif">United States (8,133.5 tonnes), Germany (3369.7), International Monetary Fund (2814), Italy (2451.8), France (2436), Russia (2119.2), Mainland China (1864.3), Switzerland (1040), Japan (657), Netherlands (612.5), India (607.0), European Central Bank (504.8), Taiwan (423.6), Portugal (382.5) and Kazakhstan (353.3).</span></span></span></li>
<li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-family:"Quicksand",serif">Asian countries:</span></strong><span style="font-family:"Quicksand",serif"> Mainland China (not including Taiwan) and Japan hold largest reserves of Gold. Mainland China has reserves of 1,864.3 tonnes and Japan has 765.2 tonnes of gold reserves.</span></span></span></li>
<li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-family:"Quicksand",serif">Gold Demand: </span></strong><span style="font-family:"Quicksand",serif">The appetite of central banks across the world for gold remains healthy following the multi-decade high in gold reserves growth in 2018<strong>.</strong></span></span></span></li>
<li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">The demand for gold was concentrated among emerging market central banks, with diversification key driver in face of ongoing geopolitical and economic uncertainty.<strong> </strong></span></span></span></li>
</ul>
<p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-family:"Quicksand",serif">World Gold Council (WGC)</span></strong></span></span></p>
<ul>
<li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">It is market development organization for the gold industry. It is headquartered in London, United Kingdom (UK).</span></span></span></li>
<li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">It is association whose members comprise world’s leading gold mining companies. </span></span></span></li>
<li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-family:"Quicksand",serif">Functions:</span></strong><span style="font-family:"Quicksand",serif"> It works across all parts of industry, from gold mining to investment. It seeks to provide industry leadership and stimulate and sustain demand for gold.<strong> </strong></span></span></span></li>
<li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">It also provides insights into international gold markets, help people to better understand wealth preservation qualities of gold and its role in meeting social and environmental needs of society.</span></span></span></li>
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'title' => 'Guatemala files complaint over India’s sugar subsidies at WTO',
'description' => '<p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">Guatemala has initiated new dispute complaint against India over sugar subsidies provided to farmers at World Trade Organization (WTO), alleging that it is inconsistent with global trade rules. Brazil and Australia also have lodged their separate complaints at WTO on this matter. All these countries have alleged that continued sugar subsidies to farmers by India, world's second-largest sugar producer has led to "glut" and "depressed" global sugar prices. </span></span></span></p>
<p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-family:"Quicksand",serif">Guatemala’s complaint</span></strong></span></span></p>
<p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">Guatemala has sought consultations with India under rules and procedures governing settlement of disputes of WTO with respect to domestic support measures maintained by India in favour of producers of sugarcane and sugar, and export subsidies for sugarcane and sugar.</span></span></span></p>
<p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">It claims that domestic support measures are inconsistent with India’s obligations under WTO’s Agreement on Agriculture (AoA). It also claims that export subsidies are inconsistent with India’s obligations under the AoA and Agreement on Subsidies and Countervailing Measures (SCM Agreement).</span></span></span></p>
<p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-family:"Quicksand",serif">India’s response</span></strong></span></span></p>
<p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">India has defended its position at WTO in informal discussions by explaining that most of its subsidies to sugar producers were in form of production subsidies that was permissible under the WTO. Besides, subsidies to exporters given for exports was for marketing and transportation purposes which, too are permitted by the WTO,</span></span></span></p>
<p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-family:"Quicksand",serif">Consultations Mechanism</span></strong></span></span></p>
<p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">Seeking consultation is first step of dispute settlement process in WTO. If the two nations are not able to reach mutually agreed solution through consultation, either country may request for WTO dispute settlement panel to review the matter. </span></span></span></p>
<p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">Under this dispute settlement mechanism, India now has to hold separate consultations with Australia, Brazil and Guatemala to listen to their concerns and explain its position. </span></span></span></p>
<p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">EU, Thailand and Costa Rica also have expressed their interest in participating in the consultations requested by Australia and Brazil with India as they were interested parties.</span></span></span></p>
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'tag' => 'World Economy',
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'title' => 'India's GDP to expand 7.5% in 2019-20: World Bank',
'description' => '<p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif">According to World Bank latest report on South Asia, India's GDP growth is expected to accelerate moderately to 7.5% in fiscal year 2019-20. It will be driven by continued investment strengthening-particularly private, improved export performance and resilient consumption. The report came ahead of spring meeting of World Bank and International Monetary Fund (IMF).</span></span></span></span></p>
<p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif">Report highlights</span></span></strong></span></span></p>
<ul>
<li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif">The real GDP growth was estimated at 7.2% in financial year 2018-19. Data for first three quarters suggest that growth was broad-based. </span></span></span></span></li>
<li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif">Industrial growth accelerated to 7.9%, making up for a deceleration in services. Besides, agriculture growth was robust at 4</span></span><span style="font-size:12.0pt">%</span><span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif">.</span></span></span></span></li>
<li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif">On the demand side, domestic consumption remained primary growth driver. Moreover, gross fixed capital formation and exports both also made growing contributions. </span></span></span></span></li>
<li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif">Over last quarter, growth is expected to remain balanced across sectors. Inflation dynamics also have been subdued over most of FY18/19<strong>.</strong></span></span></span></span></li>
<li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif">India's GDP growth is expected to accelerate moderately to 7.5% in FY19/20/ With robust growth, and food prices poised to recover, inflation is expected to converge toward 4%. </span></span></span></span></li>
<li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif">Moreover, both the current account and the fiscal deficit are expected to narrow. On the external front, improvements in India's export performance and low oil prices will also bring about reduction in CAD to 1.9% of GDP.</span></span></span></span></li>
<li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif">On the internal front, consolidated fiscal deficit is projected to decline, albeit slowly (to 6.2 and 6.0</span></span><span style="font-size:12.0pt">%</span><span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif"> of GDP in FY19/20 and FY20/21 respectively). </span></span></span></span></li>
<li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif">As center's deficit is budgeted to remain unchanged at 3.4% of GDP in FY19/20, burden of adjustment will rest on states.</span></span></span></span></li>
<li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif">There is steady decline in inflation due to sustained decline in food prices since July 2018, subsequently complemented by softening of oil prices and concomitant appreciation of the rupee.</span></span></span></span></li>
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(int) 5 => object(Cake\ORM\Entity) {
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'title' => 'India highest recipient of remittances in 2018: World Bank',
'description' => '<p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif">According to recently published World Bank's Migration and Development brief, India retained its position as world's top recipient of remittances by receiving record $79 billion back home in 2018. India was followed by China ($67 billion), Mexico ($36 billion), Philippines ($34 billion), and Egypt ($29 billion).</span></span></span></span></p>
<p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif">Key Highlights of WB Brief </span></span></strong></span></span></p>
<ul>
<li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif">Global remittances: </span></span></strong><span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif">Including high-income countries has reached $689 billion in 2018, up from $633 billion in 2017. Remittances are on track to become largest source of external financing in developing countries.</span></span></span></span></li>
<li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif">Remittances to low-and middle-income countries: </span></span></strong><span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif">It has reached record high of $529 billion in 2018, an increase of 9.6% over the previous record high of $483 billion in 2017.</span></span></span></span></li>
<li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif">Remittance to India:</span></span></strong><span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif"> Over the last three years, India has registered significant flow of remittances from $62.7 billion in 2016 to $65.3 billion 2017. Remittances grew by more than 14% in India. Flooding disaster in Kerala has likely boosted financial help that migrants sent to families.</span></span></span></span></li>
<li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif">Remittances to South Asia: </span></span></strong><span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif">It grew 12% to $131 billion in 2018, outpacing the 6</span></span><span style="font-size:12.0pt">%</span><span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif"> growth in 2017. The upsurge was driven by stronger economic conditions in United States and pick-up in oil prices, which had positive impact on outward remittances from some Gulf Cooperation Council (GCC) countries.</span></span></span></span></li>
<li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif">Avg cost of sending remittance: </span></span></strong><span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif">Global average cost of sending $200 remittance remained high, at around 7% in first quarter of 2019. </span></span></span></span></li>
<li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif">The high costs of money transfers reduce benefits of migration. Reducing remittance costs to 3% by 2030 is global target under Sustainable Development Goal (SDG) 10.7.</span></span></span></span></li>
<li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif">There is need for renegotiating exclusive partnerships and allowing players operate through national post offices, banks, and telecommunications companies to increase competition for opening new transferring and lowering remittance prices.</span></span></span></span></li>
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'title' => 'India needs to bolster level of capitalisation of state-owned banks: IMF',
'description' => '<p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif">International Monetary Fund’s (IMF) Financial Sector Assessment Programme (FSAP) for India has recommended bolstering level of capitalisation of some banks, particularly government-owned banks. This is required considering high level of non-performing loans in India.</span></span></span></span></p>
<p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif">Highlights of FSAP for India</span></span></strong></span></span></p>
<p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif">It also has recommended</span></span> r<span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif">esolution and recognition of Non-performing loans as part of process of cleaning up the banking system of non-performing loans. It also acknowledged that some steps that were taken by authorities to boost capital buffers in banks and also to improve governance in state-owned banks that have had some positive impact.</span></span></span></span></p>
<p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif">Financial Sector Assessment Programme (FSAP)</span></span></strong></span></span></p>
<ul>
<li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif">It is comprehensive and in-depth analysis of country’s financial sector. Its assessments are joint responsibility of the IMF and World Bank in developing economies and emerging markets and of IMF alone in advanced economies. </span></span></span></span></li>
<li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif">It includes two major components: (i) financial stability assessment, which is the responsibility of the IMF, and (ii) financial development assessment, which is responsibility of World Bank. </span></span></span></span></li>
<li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif">Two-fold goal of FSAP assessments: Gauge stability and soundness of financial sector and assess its potential contribution to growth and development.</span></span></span></span></li>
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'title' => 'US, Singapore, Taiwan seek to join consultations in WTO dispute over India's tariffs on ICT goods',
'description' => '<p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">United States (US), Singapore and Chinese Taipei (Taiwan) have expressed their interest to join consultations sought by European Union (EU) under World Trade Organization's (WTO) dispute settlement mechanism against India's import duties on certain Information Communication and Technology (ICT) products, including mobile phones. As per the WTO rules, these three countries would have to seek approval from India and EU to join the consultation process.</span></span></span></p>
<p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-family:"Quicksand",serif">Background</span></strong></span></span></p>
<p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">In April 2019, EU dragged India into the WTO's dispute settlement mechanism over imposition of import duties on these products, alleging breach of global trade norms. EU has challenged introduction of import duties by India on wide range of ICT products, for instance, mobile phones and components, base stations, integrated circuits and optical instruments. EU has requested consultations with India under WTO rules governing the settlement of disputes with regard to the tariff treatment that the country accords to certain goods in the ICT sector.</span></span></span></p>
<p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-family:"Quicksand",serif">Consultation seeking process</span></strong></span></span></p>
<p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">Seeking consultation is the first step of dispute settlement process as per WTO rules. If consultations requested with both India and EU do not result in satisfactory solution, EU can request WTO to set up panel in the case to rule on the issue raised.</span></span></span></p>
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(int) 8 => object(Cake\ORM\Entity) {
'tag' => 'World Economy',
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'title' => 'India projected to grow at 7.1% in FY20: UN-WESP Report',
'description' => '<p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">According to recently released World Economic Situation and Prospects (WESP) as of mid-2019, India's economy is projected to grow at 7.1</span></span><span style="font-size:10.0pt"><span style="font-family:"Times New Roman","serif"">%</span></span><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif""> in the fiscal year 2020. This growth will be driven by strong domestic consumption and investment. With this, India remains fastest growing major economy in the world, ahead of China. However, it has revised India’s growth projections from 7.4</span></span><span style="font-size:10.0pt"><span style="font-family:"Times New Roman","serif"">% </span></span><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">estimated in January 2019.</span></span></span></span></p>
<p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">Key Highlights of WESP as of Mid-2019</span></span></strong></span></span></p>
<p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">Global growth projections:</span></span></strong><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif""> Across both developed and developing countries, growth projections for 2019 have been downgraded. It is mainly due to unresolved trade tensions and elevated international policy uncertainty. Following an expansion of 3.0</span></span><span style="font-size:10.0pt"><span style="font-family:"Times New Roman","serif"">% </span></span><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">in 2018, world gross product growth is now projected to moderate to 2.7</span></span><span style="font-size:10.0pt"><span style="font-family:"Times New Roman","serif"">%</span></span><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">% in 2019 and 2.9</span></span><span style="font-size:10.0pt"><span style="font-family:"Times New Roman","serif"">%</span></span><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif""> in 2020.</span></span></span></span></p>
<p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">Risks that could trigger prolonged global slowdown:</span></span></strong><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif""> Further escalation in trade disputes, sudden deterioration in financial conditions, and accelerating effects of climate change. The increase in frequency and intensity of natural disasters highlight rising threats from climate change, particularly for the most vulnerable economies.</span></span></span></span></p>
<p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">Monetary Policy:</span></span></strong><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif""> The slowdown in global economic activity has triggered shift towards easier monetary policy stances across many developed and developing economies. This shift is taking place in environment of subdued global inflation, amid weakening demand and moderate outlook for global commodity prices.</span></span></span></span></p>
<p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">South Asia:</span></span></strong><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif""> It remains on strong growth path, even as forecasts have been revised downward. Following an expansion of 5.7</span></span><span style="font-size:10.0pt"><span style="font-family:"Times New Roman","serif"">% </span></span><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">in 2018, GDP growth is estimated at 5.0</span></span><span style="font-size:10.0pt"><span style="font-family:"Times New Roman","serif"">% </span></span><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">in 2019 and 5.8</span></span><span style="font-size:10.0pt"><span style="font-family:"Times New Roman","serif"">% </span></span><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">in 2020. However, across region, output continues to be constrained by infrastructure bottlenecks. Indian economy accounts for two-thirds of regional output in South Asia.</span></span></span></span></p>
<p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">India’s growth projections:</span></span></strong><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif""> India's economy is projected to grow at 7</span></span><span style="font-size:10.0pt"><span style="font-family:"Times New Roman","serif"">%</span></span><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">% in the fiscal year 2019 and 7.1</span></span><span style="font-size:10.0pt"><span style="font-family:"Times New Roman","serif"">%</span></span><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif""> in the fiscal year 2020 on the back of strong domestic consumption and investment. India's exports remain more robust, as around half of exports are destined for faster-growing Asian markets.</span></span></span></span></p>
<p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">About WESP report</span></span></strong></span></span></p>
<p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">It is joint product of United Nations Department of Economic and Social Affairs (UN/DESA), United Nations Conference on Trade and Development (UNCTAD) and five UN regional commissions.</span></span></span></span></p>
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'title' => 'India-China IT and DT Industry Cooperation Forum held in China',
'description' => '<p style="margin-left:0in; margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">The 2019 Sino-India IT and DT Industry Cooperation Forum was held in Guiyang (Guizhou), China to encourage IT companies. It seeks to create new chapter in India-China cooperation in the new era of digital transition. It was held on sidelines of International Big Data Industry Expo 2019. </span></span></span></span></p>
<p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">International Big Data Industry Expo 2019</span></span></strong></span></span></p>
<ul>
<li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">It was four-day event is being attended by 448 enterprises from 59 countries. It featured high-end dialogues, forums, contests and exhibitions highlighting the technical innovations. </span></span></span></span></li>
<li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">It was being attended by representatives of companies like Apple, Qualcomm, Huawei, Tencent, Alibaba and Foxconn. </span></span></span></span></li>
<li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">It was initiated in 2015 and since then this expo has become important annual event for the big data industry. Last year, it had attracted over 40,000 participants from 30 countries. </span></span></span></span></li>
</ul>
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'tag' => 'World Economy',
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'title' => 'Trump accuses China of 'currency manipulation',
'description' => '<p><strong><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">Context: </span></span></strong><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">On 5/08/2019, the <strong>US Treasury Department declared that China is a currency manipulator. </strong>The move came after <strong>the People’s Bank of China</strong> (PBOC), the central bank of China<strong>, allowed the yuan to suddenly depreciate </strong>(or lose value) relative to <strong>the dollar by 1.9 per cent </strong>(one of the biggest single-day falls</span></span><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">)</span></span><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">. As a result, the <strong>yuan breached the 7-to-a-dollar-mark for the first time since 2008.</strong></span></span><strong> </strong><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">In retaliation, the US announced that it would approach the IMF <strong>“to eliminate the unfair competitive advantage created by China’s latest actions.”</strong></span></span></p>
<p> </p>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>What is a currency’s exchange rate?</strong></span></span></p>
<ul>
<li><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">An exchange rate is the <strong>value of a nation's currency in terms of the currency of another nation or economic zone.</strong></span></span></li>
</ul>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>How are exchange rates determined?</strong></span></span></p>
<ul>
<li><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>In an ideal world</strong>, the exchange rate for any currency would be <strong>determined by the interplay of its demand and supply. </strong>If more Indians want to buy US goods, there would be a higher demand for the dollar relative to the rupee. </span></span></li>
<li><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">This, in turn, would mean the dollar would be “stronger” than the rupee — and gain in strength as the demand increases. If demand falls, the dollar would depreciate relative to the rupee (or the rupee would appreciate relative to the dollar).</span></span></li>
</ul>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>W</strong><strong>hat is currency manipulation?</strong></span></span></p>
<ul>
<li><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>The real world is far from ideal. </strong>Most governments and central banks are bothered about generating more growth and employment at home<strong>. A weaker domestic currency comes in very handy when governments are trying to attract foreign demand and boost exports. </strong>China’s economic growth has been essentially fuelled by exporting to the world.</span></span></li>
<li><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Currency manipulation happens <strong>when governments try to artificially tweak the exchange rate to gain an “unfair” advantage in trade</strong>.</span></span></li>
<li><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">In other words, if <strong>China’s central bank buys dollars in the forex market, it can artificially weaken the yuan</strong><strong> </strong>and <strong>Chinese goods will then become more affordable (and competitive) in the international market.</strong></span></span></li>
</ul>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Can currency manipulation be justified?</strong></span></span></p>
<ul>
<li><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Some amount of such “intervention” </strong>by central banks is <strong>allowed to reduce wild fluctuations </strong>in the exchange rate. But <strong>excessive and undisclosed interventions are not considered fair.</strong></span></span></li>
</ul>
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'tag' => 'World Economy',
'keyword' => 'world-economy',
'id' => (int) 1891,
'title' => 'Artificial Currency weakening by china',
'description' => '<p style="margin-left:0in; margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Issue</span></span></strong></span></span></p>
<p style="margin-left:0in; margin-right:0in"> </p>
<p style="margin-left:0in; margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:10.0pt"><span style="background-color:whitesmoke"><span style="font-family:"Times New Roman","serif""><span style="color:#282828">The United States has designated China as a “currency manipulator” after Chinese Central bank Yuan weakens past US dollars.</span></span></span></span></span></span></p>
<p style="margin-left:0in; margin-right:0in"> </p>
<p style="margin-left:0in; margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Background</span></span></strong></span></span></p>
<p style="margin-left:0in; margin-right:0in"> </p>
<p style="margin-left:0in; margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:10.0pt"><span style="background-color:whitesmoke"><span style="font-family:"Times New Roman","serif""><span style="color:#282828">The present devaluation of the currency has gained significance in light of the ongoing trade war between the U.S. and China. Both countries have slapped high tariffs on goods worth billions imported into their countries from the other side.</span></span></span></span></span></span></p>
<p style="margin-left:0in; margin-right:0in"> </p>
<p style="margin-left:0in; margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">What is Artificial Currency Fixing?</span></span></strong></span></span></p>
<ul>
<li><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:10.0pt"><span style="background-color:whitesmoke"><span style="font-family:"Times New Roman","serif""><span style="color:#282828">Devaluing the currency is a common ploy employed by economies that face a slowdown in order to help boost demand for their goods. </span></span></span></span></span></span></li>
<li><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:10.0pt"><span style="background-color:whitesmoke"><span style="font-family:"Times New Roman","serif""><span style="color:#282828">A currency is devalued (or weakened) using the central bank to increase the supply of the currency in the forex market. This allows more units of the currency to be purchased using fewer units of various other foreign currencies. </span></span></span></span></span></span></li>
<li><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:10.0pt"><span style="background-color:whitesmoke"><span style="font-family:"Times New Roman","serif""><span style="color:#282828">This is a way of transferring more of the purchasing power to buy Chinese goods away from the hands of the local Chinese and into the hands of Americans. The Chinese believe this will help boost the value of China’s exports and also kick-start growth.</span></span></span></span></span></span></li>
</ul>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">How does it impact global economy?</span></span></strong></span></span></p>
<ul>
<li><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:10.0pt"><span style="background-color:whitesmoke"><span style="font-family:"Times New Roman","serif""><span style="color:#282828">Chinese economy has been witnessing a general slowdown, with growth dropping to a 27-year low of 6.2%. China has decided to depend more heavily on exports as a way to boost demand for its goods.</span></span></span></span></span></span></li>
<li><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:10.0pt"><span style="background-color:whitesmoke"><span style="font-family:"Times New Roman","serif""><span style="color:#282828">If the U.S. weakens the dollar to retaliate against China’s Yuan devaluation, it will enter a currency war. </span></span></span></span></span></span></li>
<li><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:10.0pt"><span style="background-color:whitesmoke"><span style="font-family:"Times New Roman","serif""><span style="color:#282828">This can cause terrible uncertainty for businesses. Combined with high tariffs, this will lead to a steep fall in international trade. </span></span></span></span></span></span></li>
<li><span style="font-size:10.0pt"><span style="background-color:whitesmoke"><span style="font-family:"Times New Roman","serif""><span style="color:#282828">Currency devaluation may temporarily boost exports by transferring more purchasing power to the hands of foreign investors, but it will not boost domestic production. Eventually,such competitive devaluations can cause the size of global trade to shrink</span></span></span></span></li>
</ul>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:12.0pt"><span style="background-color:whitesmoke"><span style="font-family:"Times New Roman","serif""><span style="color:#282828">Impact on India</span></span></span></span></strong></span></span></p>
<ul>
<li><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:10.0pt"><span style="background-color:white"><span style="font-family:"Times New Roman","serif""><span style="color:#111111">The </span></span></span></span><span style="font-size:10.0pt"><span style="background-color:white"><span style="font-family:"Times New Roman","serif""><span style="color:#111111">result of China’s decision to let the Yuan fall against the dollar, demand for dollars surged around the globe, including in India, investors buy dollars at the expense of the rupee. The Indian currency can plunge into low against the dollar.</span></span></span></span></span></span></li>
</ul>
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'title' => 'US announces tariff hikes on Chinese goods',
'description' => '<p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Issue</span></span></strong></span></span></p>
<p style="margin-right:0in"> </p>
<p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="background-color:white"><span style="font-family:"Times New Roman","serif""><span style="color:black">U.S. President Donald Trump on Friday lashed back at a new round of Chinese tariffs by heaping an additional 5% duty on some $550 billion in targeted Chinese goods. This is a part of trade war between world’s two largest economies</span></span></span><span style="background-color:whitesmoke"><span style="font-family:"Times New Roman","serif""><span style="color:#282828">.</span></span></span></span></span></p>
<p style="margin-right:0in"> </p>
<p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Background</span></span></strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="background-color:white"><span style="font-family:"Times New Roman","serif""><span style="color:black">Mr. Trump has accused China of unfair trade practices and pushed for a deal that would rebalance the relationship in favour of U.S. manufacturers and workers</span></span></span></span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="background-color:white"><span style="font-family:"Times New Roman","serif""><span style="color:black">China unveiled its retaliatory tariffs on $75 billion worth of U.S. goods, prompting the President earlier in the day to demand U.S. companies move their operations out of China.</span></span></span></span></span></p>
</li>
</ul>
<p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Details</span></span></strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="background-color:white"><span style="font-family:"Times New Roman","serif""><span style="color:black">United States has said it would raise its existing tariffs on $250 billion worth of Chinese imports to 30% from the current 25% beginning October 1.</span></span></span></span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="background-color:white"><span style="font-family:"Times New Roman","serif""><span style="color:black">Tariffs on the remaining $300 billion worth of Chinese goods to 15% from 10%. The United States will begin imposing those tariffs on some products starting September, but tariffs on about half of those goods have been delayed</span></span></span><span style="background-color:whitesmoke"><span style="font-family:"Times New Roman","serif""><span style="color:#282828">.</span></span></span></span></span></p>
</li>
</ul>
<p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Effect on India and world</span></span></strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="background-color:white"><span style="font-family:"Times New Roman","serif""><span style="color:black">China will search for other markets where it can dump the products it exported to the US. India will provide a ready-made market for these Chinese products. The trade war will result in an increase in Chinese exports to India.</span></span></span></span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="background-color:white"><span style="font-family:"Times New Roman","serif""><span style="color:black">The trade war will adversely affect global trade and financial markets. IMF has predicted that a full-blown trade war would cause the global economy to slow down by more than 0.8% in 2020. This will lead to shrinking of Indian exports in the coming months, not only to the US and China but also to other countries. </span></span></span></span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="background-color:white"><span style="font-family:"Times New Roman","serif""><span style="color:black">This will negatively affect income and employment generation in export-driven sectors and downstream industries. Given the inelastic nature of Indian imports like dependence on oil, a slowdown in exports will result in a higher trade deficit. </span></span></span></span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="background-color:white"><span style="font-family:"Times New Roman","serif""><span style="color:black">This will lead to a further fall in the Indian rupee’s value, exerting pressure on other macroeconomic indicators and depreciates currency. </span></span></span></span></span><br />
</p>
</li>
</ul>
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(int) 13 => object(Cake\ORM\Entity) {
'tag' => 'World Economy',
'keyword' => 'world-economy',
'id' => (int) 2019,
'title' => 'Chinese influence on falling rupee',
'description' => '<p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Issue</span></span></strong></span></span></p>
<p style="margin-right:0in"> </p>
<p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Times New Roman","serif"">The Indian rupee fell sharply by 40 paise against dollar to hit 72.05. The global recession and trade war between Us and China are said to have influenced this phenomenon. </span></span></span></p>
<p style="margin-right:0in"> </p>
<p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Background</span></span></strong></span></span></p>
<p style="margin-right:0in"> </p>
<p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="background-color:white"><span style="font-family:"Times New Roman","serif""><span style="color:black">Normally, the rupee moves in line with the movement of the stock market, as a positive development assures rupee to gain its value in the market.</span></span></span></span></span></p>
<p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="background-color:white"><span style="font-family:"Times New Roman","serif""><span style="color:black">The rupee has reeled under global pressure as markets remained concerned over an escalation of the trade tariff war between the United States and China.</span></span></span></span></span></p>
<p style="margin-right:0in"> </p>
<p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Details</span></span></strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="background-color:white"><span style="font-family:"Times New Roman","serif""><span style="color:black">Recently the Renminbi fell to a new 11-year low of 7.15 against the dollar due to rising concerns over the tariff war. Most emerging market currencies, including the Malaysian Ringgit, the Indonesian Rupiah, and the South African Rand, came under pressure. So did the rupee, which fell sharply.</span></span></span></span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="background-color:white"><span style="font-family:"Times New Roman","serif""><span style="color:black">Trade war fears between US and China and a sharp fall in Chinese Yuan (breaching 7 to a dollar) hit the global market sentiments and decline in currencies of most countries including India.</span></span></span></span></span></p>
</li>
</ul>
<p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:12.0pt"><span style="background-color:white"><span style="font-family:"Times New Roman","serif""><span style="color:black">Link between rupee and Renminbi</span></span></span></span></strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="background-color:white"><span style="font-family:"Times New Roman","serif""><span style="color:black">A weakness in the renminbi (yuan) increases the competitiveness of Chinese exports, as every dollar can import larger quantities of Chinese goods. </span></span></span></span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="background-color:white"><span style="font-family:"Times New Roman","serif""><span style="color:black">At the same time, it puts competing countries under pressure, as their goods become relatively more expensive. As the exports become expensive rupee losses its value and depreciates.</span></span></span></span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="background-color:white"><span style="font-family:"Times New Roman","serif""><span style="color:black">US and overall slowdown in global growth has fuelled the concerns that China may be devaluing its currency to boost its exports and push growth.</span></span></span></span></span></p>
</li>
</ul>
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(int) 14 => object(Cake\ORM\Entity) {
'tag' => 'World Economy',
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'id' => (int) 2202,
'title' => 'US-China war can reduce global GDP',
'description' => '<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Issue</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Tariffs imposed or threatened by the United States and China could reduce 0.8% off global economic output in 2020 and trigger more losses in future according to the International Monetary Fund.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Background</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The world's two largest economies, USA and China are preparing for new rounds of talks aimed at curbing a more-than-year-long trade war that has hurt global economic growth and rattled financial markets.</span></span><br />
</p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Details</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The IMF lowered its 2019 global growth forecast from 3.3 per cent to 3.2 per cent, citing international tensions and the US-China trade war in particular.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">World economic activity remained subdued, with trade and geopolitical tensions causing uncertainty and eroding business confidence, investment and trade.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Implications</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The result is a large pullback in investment and along with that , price increases and ruffled consumers. This causes U.S. and global GDP to contract sharply.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The U.S. dollar appreciates as capital flight intensifies and emerging market currencies depreciate sharply. Investments in US may take a hit, which may lead to depreciation of US dollars.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Moody's forecasts that non-farm employment would be 793,900 lower by the end of 2021.</span></span></p>
</li>
</ul>
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(int) 15 => object(Cake\ORM\Entity) {
'tag' => 'World Economy',
'keyword' => 'world-economy',
'id' => (int) 4307,
'title' => 'Crude oil prices fall below $0 mark',
'description' => '<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Issue</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">US oil markets created history when prices of West Texas Intermediate (WTI), the best quality of crude oil in the world, fell to “minus” $40.32 a barrel in New York. </span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Background</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Not only is this the lowest crude oil price ever known, the previous lowest was immediately after World War II — but also well below the zero-mark.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Details</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The first thing to understand is that, even before the Covid-19 induced global lockdown, crude oil prices had been falling over the past few months. They were closer to $60 a barrel at the start of 2020 and by March-end, they were closer to $20 a barrel.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The reason was straightforward. The price of a commodity falls when supply is more than demand. To a great extent, oil markets, globally and more so in the US, are facing an enormous glut.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Historically, the Organization of the Petroleum Exporting Countries (OPEC), lead by Saudi Arabia, which is the largest exporter of crude oil in the world (single-handedly exporting 10% of the global demand), used to work as a cartel and fix prices in a favourable band. It could bring down prices by increasing oil production and raise prices by cutting production.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">As Saudi Arabia and Russia disagreed over the production cuts required to keep prices stable. As a result, oil-exporting countries, led by Saudi Arabia, started undercutting each other on price while continuing to produce the same quantities of oil.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">According to reports, all possible the mismatch resulted in almost all storage capacity being exhausted. Trains and ships, which were typically used to transport oil, too, were used up just for storing oil.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">This desperation from both sides, buyers and sellers, to get rid of oil meant the oil prices not only plummeted to zero but also went deep into the negative territory.</span></span></p>
</li>
<li>
<p><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">In the short-term, for both, the holders of the delivery contract and the oil producers, it was less costly to pay $40 a barrel and get rid of the oil instead of storing it (buyers) or stopping production (producers).</span></span></p>
</li>
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(int) 16 => object(Cake\ORM\Entity) {
'tag' => 'World Economy',
'keyword' => 'world-economy',
'id' => (int) 4337,
'title' => 'Effect of oil prices on sugar',
'description' => '<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Issue</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">It is not only oil that has tumbled, with prices of West Texas Intermediate grade crude closing at an unprecedented minus $37.63 per barrel on April 20. On April 21, prices of raw sugar for May delivery at New York crashed to 9.75 cents per pound, the lowest closing for a nearest-month futures contract.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Details</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">All commodities have taken a demand hit from subdued economic activity and lockdowns imposed by many countries to combat the COVID-19 pandemic. But sugar is one commodity that, until quite recently, was on a bull run. </span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Most estimates showed global production in 2019-20 (October-September) to fall short of consumption by 8-9 million tonnes (mt). On February 12, the front-month raw sugar futures contract at New York actually closed 15.78 cents per pound, the highest since May 2017. A drop from that to below 10 cents is rather steep.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">One reason for this collapse is the closure of restaurants, weddings and other social functions not taking place, and people avoiding ice-creams and sweetened cold beverages that might cause throat infections. </span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The consumption in India alone is expected to dip by 1.5-2 mt in 2019-20, from the normal 25.5-26 mt levels, which also is a direct effect of the lockdown.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Sinking crude prices appear an even bigger factor. The juice from crushing sugarcane can be crystallised into sugar or fermented into alcohol. When oil prices are high, mills, especially in Brazil, tend to divert cane for making ethanol (alcohol of 99%-plus purity) that is used for blending with petrol.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">In 2019-20 (April-March), only 34.32% of cane crushed by Brazilian mills went for manufacturing 26.73 mt of sugar. The rest was used to produce 31.62 billion litres of ethanol. But with oil prices tanking, mills will not find it attractive to divert cane for ethanol. </span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Dip in sugar consumption, together with higher Brazilian output, is bad news for both Indian sugar mills and cane farmers. Before COVID-19 happened, the Indian industry was expecting to export 5.5-6 mt of raw sugar in 2019-20.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The current plunge in world prices, plus Brazil’s likely production surge, would upset calculations but the bright spot is that Indonesia has a large demand for imported sugar. It has also slashed duty from 15% to 5% on Indian raw sugar.</span></span></p>
</li>
<li>
<p><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">Moreover, the industry’s problem is not from sugar alone. The lockdown has reduced off-take of alcohol, be it potable liquor or ethanol for blending with petrol. But with cars and two-wheelers not running, oil market companies aren’t very keen to procure ethanol.</span></span></p>
</li>
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(int) 17 => object(Cake\ORM\Entity) {
'tag' => 'World Economy',
'keyword' => 'world-economy',
'id' => (int) 4553,
'title' => 'Effect of COVID-19 on global economy',
'description' => '<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Issue</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Amid the coronavirus pandemic, several countries across the world resorted to lockdowns to “flatten the curve” of the infection. These lockdowns meant confining millions of citizens to their homes, shutting down businesses and ceasing almost all economic activity.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Background</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">According to the International Monetary Fund (IMF), the global economy is expected to shrink by over 3 per cent in 2020 – the steepest slowdown since the Great Depression of the 1930s.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Details</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The pandemic has pushed the global economy into a recession, which means the economy starts shrinking and growth stops.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">In the US, Covid-19-related disruptions have led to millions filing for unemployment benefits. Since March 21, more than 36 million have filed for unemployment benefits, which is almost a quarter of the working-age population.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Further, an early analysis by IMF reveals that the manufacturing output in many countries has gone done, which reflects a fall in external demand and growing expectations of a fall in domestic demand.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The IMF’s estimate of the global economy growing at -3 percent in 2020 is an outcome “far worse” than the 2009 global financial crises. Economies such as the US, Japan, the UK, Germany, France, Italy and Spain are expected to contract this year.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Advanced economies have been hit harder, and together they are expected to grow by -6 percent in 2020. Emerging markets and developing economies are expected to contract by -1 percent. If China is excluded from this pool of countries, the growth rate for 2020 is expected to be -2.2 percent.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">China’s GDP dropped by 36.6 percent in the first quarter of 2020, while South Korea’s output fell by 5.5 percent, since the country didn’t impose a lockdown but followed a strategy of aggressive testing, contact tracing and quarantining.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Due to the fall in travel, global industrial activity has been affected. Oil prices fell further in March as the transportation section, which accounts for 60 percent of the oil demand, was hit due to several countries imposing lockdowns.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">IMF projects a decrease in food prices by 2.6 percent in 2020, caused by supply chain disruptions, border delays, food security concerns in regions affected by Covid-19 and export restrictions.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Many advanced economies in the world have rolled out support packages. While India’s economic stimulus package is 10 percent of its GDP, Japan’s is 21.1 percent, followed by the US (13 percent), Sweden (12 percent), Germany (10.7 percent), France (9.3 percent), Spain (7.3 percent) and Italy (5.7 percent).</span></span></p>
</li>
<li>
<p><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">Even as economic activity resumes gradually, the situation will take time to normalise, as consumer behaviours change as a result of continued social distancing and uncertainty about how the pandemic will evolve.</span></span></p>
</li>
</ul>
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(int) 18 => object(Cake\ORM\Entity) {
'tag' => 'World Economy',
'keyword' => 'world-economy',
'id' => (int) 5624,
'title' => 'Forex reserves at all time high',
'description' => '<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Issue</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">India’s foreign exchange (forex) reserves surged by $3.883 billion to touch a lifetime high of $541.431 billion in the week ended August 28.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Background</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"> India’s forex reserves had crossed $500 billion for the first time ever in the week ended June 5, 2020, hitting what was then the all-time high of $501.7 billion.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Details</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The current situation stands in stark contrast to the one in 1991, when India had to pledge its gold reserves to stave off a major financial crisis. </span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">In March 1991, India had forex reserves of a mere $5.8 billion. The country can depend on its soaring foreign exchange reserves to tackle any crisis on the economic front.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The major reason for the rise in forex reserves is the rise in investment in foreign portfolio investors in Indian stocks and foreign direct investments (FDIs).</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The fall in crude oil prices has brought down the oil import bill, saving precious foreign exchange. Similarly, overseas remittances and foreign travels have fallen steeply.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The rising forex reserves give comfort to the government and the RBI in managing India’s external and internal financial issues at a time of major contraction in economic growth. </span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">It serves as a cushion in the event of a crisis on the economic front, and is enough to cover the import bill of the country for a year.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The RBI uses its forex kitty for the orderly movement of the rupee. It sells the dollar when the rupee weakens and buys the dollar when the rupee strengthens. </span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">When the RBI mops up dollars, it releases an equal amount in rupees. This excess liquidity is sterilised through the issue of bonds and securities and LAF operations.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Forex reserves</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Forex reserves are external assets in the form of gold, SDRs (special drawing rights of the IMF), and foreign currency assets (capital inflows to the capital markets, FDI, and external commercial borrowings) accumulated by India and controlled by the RBI.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Official foreign exchange reserves are held in support of a range of objectives like supporting and maintaining confidence in the policies for monetary and exchange rate management including the capacity to intervene in support of the national or union currency.</span></span></p>
</li>
<li>
<p><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">It also limits external vulnerability by maintaining foreign currency liquidity to absorb shocks during times of crisis or when access to borrowing is curtailed.</span></span></p>
</li>
</ul>
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(int) 19 => object(Cake\ORM\Entity) {
'tag' => 'World Economy',
'keyword' => 'world-economy',
'id' => (int) 5292,
'title' => 'US GDP slide',
'description' => '<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Issue</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The United States contracted by 33 percent in the second quarter, or a near 10 percent quarter-over-quarter decline— making it the sharpest GDP decline in the history of the world’s largest economy.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Background</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">This is in sharp contrast to GDP data released by China, where growth in the world’s second-largest economy has swung back sharply in the April-June quarter.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Details</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">GDP growth trends of the US and China show that the government’s effectiveness in getting an economy back on track is dependent on its success in controlling the spread of the virus. The recovery in economic activity also depends on the quality of policy support.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Economists decoding the slide in the US GDP numbers point to a significant fall in consumption, the biggest component of American GDP that accounts for almost 70 percent of the economy. </span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Spending on goods and services is estimated to have fallen at a seasonally adjusted annualised rate of 35 percent in the second quarter.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Investments in buildings, equipment, and intellectual property also fell at an annual rate of 49 percent while exports plunged 64 percent. </span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The worrying news for the US is that the scale of this fall in the first quarter will be dwarfed by that in the second.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">After many states lifted their lockdown orders in April and May, COVID-19 cases began a sharp climb in June, with the result that rebounding economic activity sputtered.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Both the US and China are driven by consumption with over two-thirds of US GDP and more than one-half that of China depends on it.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Other than the quarterly lag in the transmission dynamics, the big differentiator is with respect to the services sector and consumption trends. </span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">While both economies rely on the service sector for a range of value-additions and output that contribute to their respective GDP, continuing restrictions have significantly hampered the return of such jobs in the US, especially in the catering, travel, and hospitality industries that account for a bulk of the urban jobs. </span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Such restrictions in the US have been geographically more widespread and longer-term, given the initial delay in responding to the spread of the disease, and fickle state government policies.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">India’s recovery plan is different from both the US and China. In India, the measures have been liquidity driven, with little burden on the Central exchequer. </span></span></p>
</li>
<li>
<p><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">It has been primarily focused on pushing banks to extend credit on the back of government guarantees to sectors that include small businesses, non-banking financial companies, microfinance institutions, and housing finance companies. A consumption boost in India’s recovery is practically ruled out.</span></span></p>
</li>
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(int) 20 => object(Cake\ORM\Entity) {
'tag' => 'World Economy',
'keyword' => 'world-economy',
'id' => (int) 6698,
'title' => 'Challenges for policymakers in 2021',
'description' => '<p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Issue</strong></span></span></p>
<p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Over the past few weeks, India seems to have broken the link between rising levels of mobility and COVID-19 cases. The number of new cases has fallen while the fatality rate continues to drop. </span></span></p>
<p style="margin-right:0in"> </p>
<p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Background</strong></span></span></p>
<p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">As India looks to emerge from the pandemic, it remains to be seen how the government will handle other emerging challenges.</span></span></p>
<p style="margin-right:0in"> </p>
<p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Details</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The last quarter saw an improvement in growth<strong> </strong>as consumers were eager to spend, especially on festival-related items, bolstered by higher-than-usual financial savings.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">While much of the fiscal support packages around the world have been directed towards safeguarding the vulnerable like poorer households and small businesses, there were some such as the urban poor being left out.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">In order to handle effects of the pandemic, the government has been on spending spree. It has infused liquidity into the market to generate demand.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Inflation control could be the main task facing policymakers in 2021. The RBI may have to take steps to gradually drain the excess liquidity in the banking sector, provide a floor for short-term rates and finally narrow the policy rate corridor by raising the reverse repo rate.</span></span></p>
</li>
</ul>
<p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Tackling inflation</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Inflation occurs when an economy grows due to increased spending. When this happens, prices rise and the purchasing power of the currency within the economy is worth less than it was before.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">One popular method of controlling inflation is through a contractionary monetary policy. The goal of a contractionary policy is to reduce the money supply within an economy by decreasing bond prices and increasing interest rates. </span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The second tool is to increase reserve requirements on the amount of money banks are legally required to keep on hand to cover withdrawals.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">? The more money banks are required to hold back, the less they have to lend to consumers. If they have less to lend, consumers will borrow less, which will decrease spending.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The third method is to directly or indirectly reduce the money supply by enacting policies that encourage the reduction of the money supply. </span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">This includes calling in debts that are owed to the government and increasing the interest paid on bonds so that more investors will buy them.?</span></span></p>
</li>
</ul>
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(int) 21 => object(Cake\ORM\Entity) {
'tag' => 'World Economy',
'keyword' => 'world-economy',
'id' => (int) 6816,
'title' => 'Increasing spending on social sector',
'description' => '<p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Issue</strong></span></span></p>
<p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Experts have argued for the need to ramp up Budget allocations for education and health sectors in India.</span></span></p>
<p style="margin-right:0in"> </p>
<p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Details</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">A look at the social sector expenditure over the last few years shows that the share of education as a percentage of GDP has been stagnant around 2.8-3 per cent during 2014-15 to 2019-20. </span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">In the case of health, the expenditure as a percentage of GDP increased from 1.2 per cent to 1.5 per cent. This is lower than the required 2-3 per cent of GDP. </span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">There seems to be an increase in expenditure on other services like sports, art and culture, family welfare, water supply and sanitation, labour and labour welfare etc.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">India’s progress in the social sector has been much slower compared to its GDP growth. The two primary factors that adversely affect India’s human development are low levels of health attainments and education.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">India’s social sector in general, and health and education in particular, encounter significant regional, social and gender disparities, slow growth in public expenditures and problems in delivery systems.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">An increase in health expenditure is important to take care of the present and future pandemics. It is essential to have a huge increase in public expenditure on health and provide accessible, affordable and quality health coverage to all.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Another important issue in the social sector is that of undernutrition. There is a need to raise allocations for ICDS and other nutrition programmes.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Quality education is key for raising human development. The pandemic has enhanced inequalities in education and has revealed the widening digital gap.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Equality of opportunity in terms of quality education is the key to raising human development and for reducing inequalities in the labour market. </span></span></p>
</li>
</ul>
<p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Social sectors</strong></span></span></p>
<p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Social sector includes several important component such as education, health and medical care, water supply and sanitation, poverty alleviation, housing conditions etc. that play a vital contribution in human development.</span></span></p>
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(int) 22 => object(Cake\ORM\Entity) {
'tag' => 'World Economy',
'keyword' => 'world-economy',
'id' => (int) 6939,
'title' => 'Great Reset',
'description' => '<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Issue</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The World Economic Forum has been seeking to reform global capitalism in order to restore order after the devastating pandemic.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Details</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The Great Reset is an initiative by the World Economic Forum. It has been conceptualised by the founder and executive chairman of the WEF, Klaus Schwab, and has evolved over the last few years.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">It is based on the assessment that the world economy is in deep trouble. Schwab has argued that the situation has been made a lot worse by many factors, including the pandemic’s devastating effects on global society, the un- folding technological revolution, and the consequences of climate change.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Schwab demands that the world must act jointly and swiftly to revamp all aspects of our societies and economies, from education to social contracts and working conditions.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Every country, from the United States to China, must participate, and every industry, from oil and gas to tech, must be transformed. In short, we need a ‘Great Reset’ of capitalism.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Agenda of great reset</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">First is the question of reforming capitalism. Introduction of “stakeholder capitalism” that looks beyond the traditional corporate focus on maximising profit for shareholders.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Second is certainly right to focus on the deepening climate crisis, through policies such as Paris Climate Summit.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Third is the growing difficulty of global cooperation that has to be promoted. The contestation is not just political but increasingly economic and technological.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Issues with great reset</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The right sees the WEF arguments about restructuring the global economy as a dangerous attempt to impose ‘socialism’ and dismantle the traditional society.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The left points to the complicity of the Davos forum in promoting policies that have brought the world to the current impasse and question its capacity to produce solutions.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>World Economic Forum</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The World Economic Forum (WEF) is an international NGO, founded on 24 January 1971. The WEF's mission is stated as "committed to improving the state of the world by engaging business, political, academic, and other leaders of society to shape global, regional, and industry agendas”.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The WEF hosts an annual meeting at the end of January in Davos, a mountain resort in Graubünden, in the eastern Alps region of Switzerland. </span></span></p>
</li>
<li>
<p><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">The meeting brings together some 3,000 business leaders, international political leaders, economists, celebrities, and journalists for up to five days to discuss global issues, across 500 sessions.</span></span></p>
</li>
</ul>
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(int) 23 => object(Cake\ORM\Entity) {
'tag' => 'World Economy',
'keyword' => 'world-economy',
'id' => (int) 6867,
'title' => 'Amazon expanding its air fleet',
'description' => '<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Issue</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">E-commerce giant Amazon has purchased its first fleet of planes in a bid to expand its air cargo operations and delivery network.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Background</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">While the company launched its air operations in 2016, all of its planes were leased at the time. It has invested heavily to bring in new fleet of planes.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Details</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Amazon had announced that it had bought four planes from WestJet Airlines and seven from Delta Air Lines.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The planes are in the process of being converted to hold cargo instead of passengers. While the four WestJet flights will join the company’s fleet this year, the seven from Delta are expected to enter its air cargo network in 2022.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Significance</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The e-commerce platform’s bid to expand its air network points at its wider plans to shift its deliveries in-house and become a major player in the transportation sector.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">It could lead to lower overall lifetime costs, greater control over the speed, reliability, and quality of service. It could cement its place as a genuine player in the competitive world of air freight.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">As its air fleet continues to grow, some experts warn that the company could pose a significant threat to its delivery partners.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Reasons for buying</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Amazon purchased the planes at a time when the airline industry is struggling to stay afloat as aircraft costs plummet and ticket sales are on the decline due to travel restrictions induced by the Covid-19 pandemic.</span></span></p>
</li>
<li>
<p><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">Amazon has been building up its own delivery operation, both in the air and on ground, in an effort to speed up its delivery of packages, particularly in the case of its Prime service.</span></span></p>
</li>
</ul>
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(int) 24 => object(Cake\ORM\Entity) {
'tag' => 'World Economy',
'keyword' => 'world-economy',
'id' => (int) 7059,
'title' => 'Crude oil price increase',
'description' => '<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Issue</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The price of Brent crude crossed the $60 per barrel mark after over a year on the back of oil-producing countries maintaining production cuts.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Details</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The price of Brent Crude has risen by over 50 per cent since the end of October after prices had remained around $40 per barrel for five months.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Major oil-producing countries had cut oil production last year amid a sharp fall in demand due to the Covid-19 pandemic. </span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Major oil-producing countries such as Saud Arabia have been cutting its own oil production by 1 million barrels per day to strengthen crude oil prices.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Expectations of strong improvements in demand with the global rollout of the Covid-19 vaccine have also put upward pressure on crude oil prices.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Impact on India</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The rise in the price of Brent crude will lead to an increase in India’s import bill. India imports of 80 per cent of its crude oil requirements and the average price of Indian basket of crude oil has already risen to $54.8 barrel for January.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The upward move in crude prices will also put upward pressure on petrol and diesel prices across the country which is already at all-time highs.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The government had hiked central taxes on petrol and diesel by Rs 13 per litre and Rs 11 per litre in 2020 to boost revenues amid lower economic activity. </span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The increase in taxes had prevented consumers from getting the benefit of low fuel prices as international prices crashed during the first quarter of this fiscal and is now contributing to record high prices as international prices have recovered.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Brent crude</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The Brent Crude oil marker is also known as Brent Blend, London Brent and Brent petroleum. This grade is described as light because of its relatively low density, and sweet because of its low sulphur content.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Brent is the leading global price benchmark for Atlantic basin crude oils. It is used to set the price of two-thirds of the world's internationally traded crude oil supplies. </span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">It is one of the two main benchmark prices for purchases of oil worldwide, the other being West Texas Intermediate (WTI).</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>West Texas Intermediate </strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">West Texas Intermediate (WTI) is a light, sweet crude oil that serves as one of the main global oil benchmarks. It is sourced primarily from inland Texas and is one of the highest quality oils in the world.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Dubai crude</strong></span></span></p>
<p><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">Dubai Crude, also known as Fateh, is a heavy sour crude oil extracted from Dubai. For many years, most of the oil producers in the Middle East have taken the monthly spot price average of Dubai and Oman as the benchmark for sales to the Far East.</span></span></p>
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(int) 25 => object(Cake\ORM\Entity) {
'tag' => 'World Economy',
'keyword' => 'world-economy',
'id' => (int) 7184,
'title' => 'India-China trade',
'description' => '<p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Issue</strong></span></span></p>
<p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"> China reclaimed its position at the top of the list of India’s major trade partners, even as relations with Beijing plunged to new lows.</span></span></p>
<p style="margin-right:0in"> </p>
<p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Details</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Trade between India and China from January to December 2020 stood at $77.67 billion. This figure was still higher than the $75.95 billion traded between India and the US last year.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">While India has been trying to reduce its trade imbalance and dependence on Chinese imports for several years now, it was only in 2018 that the US surpassed the value of goods that China traded with India in a financial year. </span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">China got back to the top of the trade partners’ list in a year in which armies of the two countries remained locked in a tense standoff in eastern Ladakh. </span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">In 2020, India committed itself to self-reliance through the Atma Nirbhar Bharat campaign, and implemented measures to restrict Chinese investments in the country.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Dozens of China-linked apps were banned, a major infrastructure contract awarded to a Chinese firm was cancelled, and the import of certain kinds of power equipment was banned. </span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Production-linked incentive (PLI) schemes were announced across sectors to reduce dependence on critical goods from China, even though building self-reliance in these critical sectors will likely take several years.</span></span></p>
</li>
</ul>
<p style="margin-right:0in"><span style="font-size:12pt"><span style="font-family:"Times New Roman",serif"><strong><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">Exports and imports</span></span></strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Electrical machinery and equipment, nuclear reactors, boilers, machinery, and mechanical appliances continued to top the list of goods imported from China in 2020.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Exports of Indian iron and steel to China jumped over 2019, with shipments touching $2.38 billion during January to December 2020. </span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Iron and steel exports to China in 2019 were around $567 million. Export of ores, slag, and ash increased by 62 per cent to $3.48 billion in 2020 from $2.15 billion in 2019.</span></span></p>
</li>
<li>
<p><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">The increased exports, including those of iron and steel, could be the result of China’s focus on domestic infrastructure projects.</span></span></p>
</li>
</ul>
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(int) 26 => object(Cake\ORM\Entity) {
'tag' => 'World Economy',
'keyword' => 'world-economy',
'id' => (int) 7552,
'title' => 'Rupee depreciating',
'description' => '<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Issue</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The Indian rupee has lost about 4.2% of its value over the last few weeks and hit a nine-month low of 75.4 against the US dollars.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Background</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The rupee has been under tremendous pressure due to rising cases of Covid-19 as well as threat of a lockdown.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Details</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The further decline was fuelled by RBI’s decision to keep policy rates same and injecting liquidity through the Government Securities Acquisition Programme (G-SAP) programme.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The Rupee has been the weakest emerging market currencies against the US dollar. It is only behind the Turkish New Lira that has fallen 4.36%.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Brazilian Real has lost about 3.99% and Russian Rubble has lost about 3.25 per cent. Thai Baht and Indonesian Rupiah have also lost significant value.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Reasons for the decline</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Rising Covid numbers has been the biggest concern. Many states are considering more stringent lockdown measures.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The dollar has also strengthened as expectations have risen due to better growth in US economy in future.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The RBI G-SAP programme to infuse liquidity in the market is believed to be quantitative easing measure for increasing government’s borrowing programme.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Foreign Portfolio Investors have pulled out large amount of money from Indian market due to delay in economic recovery. This has further degraded rupee.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Future prospects</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The Rupee is expected to hit 77-78 over the future course of time. This has raised concerns among importers as cost of their product increases.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The government and RBI are trying to boost exports and promote local industries. This will prompt them to avoid interfering in preventing decline.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Effects of Rupee value on imports and exports</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The exchange value of Rupee has great implications on exports and imports. Imports will become costly as Rupee value depreciates and cheaper as a result of appreciation.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Similarly, if Rupee value depreciates than exports will become cheaper. It will become costly if value of Rupee appreciates.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Quantitative easing</strong></span></span></p>
<p><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">Quantitative easing (QE) is a type of unconventional monetary policy in which a central bank buys longer-term securities from the open market so as to increase the money supply and encourage lending and investment.</span></span></p>
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(int) 27 => object(Cake\ORM\Entity) {
'tag' => 'World Economy',
'keyword' => 'world-economy',
'id' => (int) 7930,
'title' => 'Edible oils turn costlier',
'description' => '<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Issue</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The prices of edible oil have rise steeply over the last few months. This is likely to put more financial strain on the government.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Background</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The sharp rise in price is visible in times where household incomes have plummeted low due to the pandemic.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Details</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The rise of edible oil prices have been between 20 percent and 56 percent. The oils include mustard oil, soya oil, vanaspati oil, sunflower oil and palm oil.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The price of packed mustard oil has rise by 44 percent over last year. Sunflower oil and soya oil prices too have rise by over 50 percent.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Consumption of oil</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The share of refined oil such as sunflower and palm has been high in urban areas. In rural areas, mustard oil has highest consumption. This is mainly due to changing food habits.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The consumption rate of oils has increased year by year due to easy availability of oil in domestic as well as international markets.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Production of oil</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The rate of consumption and domestic availability does not match. This has forced India to import majority of its oil needs.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">In the year 2019-20, India has imported about 56 percent of its oil demands through imports. They include palm, sunflower and soya bean.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The major import sources of oil are Brazil and Argentina (soya bean), Malaysia and Indonesia (palm oil), Argentina and Ukraine (sunflower).</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Reasons for price rise</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The major reason for price rise is the sharp increase in international future contracts. Since our majority supply is imported, the effects are more intense.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Another reason is the increase in production of biofuel from vegetable oil. This has been particularly visible in countries such as USA.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The La Nina has destroyed large plantation of oil crops in Indonesia as well as Argentina. This has created shortages of availability.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Measures to reduce price</strong></span></span></p>
<p><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">The best method would be to decrease import duties on the vegetable oil from other countries. Cess imposed should be taken back.</span></span></p>
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(int) 28 => object(Cake\ORM\Entity) {
'tag' => 'World Economy',
'keyword' => 'world-economy',
'id' => (int) 7977,
'title' => 'US investigation into digital services tax',
'description' => '<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Issue</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The US government has decided to suspend the punitive taxes on countries such as India, UK, Turkey etc until negotiations and investigations are completed.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Background</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The previous Trump regime had imposed taxes on products from several countries including India, citing unfair trade practices.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Details</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The US is currently carrying out negotiation with the concerned countries in various platforms such as OECD and G20.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The taxes and tariffs are suspended only temporarily and the government still has powers under Section 301 to impose in future.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Investigation on digital service taxation</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The US had conducted investigations into the taxes imposed by several countries on digital giants such as Google, Apple, Facebook and Amazon.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">They said that the taxation imposed by these countries were discriminative against the international taxation principles and burdened these companies.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">US has recently imposed 25% taxes on several goods from these countries but later had them suspended until investigations and negotiations are taking place.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>India’s digital tax</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The central government had imposed a 2 percent digital service tax on transactions carried out by non-resident digital operators having turnover above 2 crore.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The scope of the tax has been expanded to include services that earlier were restricted to only digital advertising.</span></span></p>
</li>
<li>
<p><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">The law will effectively tax e-commerce operators outside the country who are involved in online sale of goods and providing services.</span></span></p>
</li>
</ul>
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(int) 29 => object(Cake\ORM\Entity) {
'tag' => 'World Economy',
'keyword' => 'world-economy',
'id' => (int) 7998,
'title' => 'G7 corporate tax deal',
'description' => '<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Issue</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Countries part of G7 grouping have reached an agreement regarding taxation of multinational companies.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Background</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">From a long time, many multinational companies are using loopholes in taxation system to transfer their profits to countries where there are low taxes.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Details</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">In addition to this, all the member countries have decided to have a minimum tax rate so as to prevent undercutting to attract foreign investments.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Countries such as the UK, US, Germany, Canada, France, Italy and Japan have been part of the agreement. This deal will be discussed during G20 summit.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>The decisions</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The major decision is to tax multi-national companies in countries in which they operate. A minimum tax of 15% will be applied by all countries to prevent undercutting.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Significance of the minimum rate</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The 15% minimum floor rate is important because other countries may use this opportunity to increase their foreign investments.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Earlier a race by countries to attract higher investments had led to slashing of rates to minimum, leading to losses in taxes.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Target companies</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">World’s biggest corporations such as Google, Apple, and Facebook etc pay one of the lowest taxes in the world considering their profits.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">These companies make use of large subsidiaries to transfer profits into low tax havens such as Ireland, Bahamas or British Virgin islands. In this way they get to pay low taxes in operating countries.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>India’s position</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Indian government is in need of foreign investments and had cut the corporate tax for foreign companies to 22%.</span></span></p>
</li>
<li>
<p><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">By adopting a non-flexible taxation regime, it may lose out on the potential benefits it may have got by keeping tax rates lower.</span></span></p>
</li>
</ul>
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(int) 30 => object(Cake\ORM\Entity) {
'tag' => 'World Economy',
'keyword' => 'world-economy',
'id' => (int) 8248,
'title' => 'OPEC’s output pact proposal',
'description' => '<p><strong>Issue</strong></p>
<p>The talks held between OPEC+ countries have failed to give any result after UAE stopped a conditional supply agreement in addition to output pact.</p>
<p> </p>
<p><strong>Background</strong></p>
<p>OPEC+ has been contemplating increasing production of crude oil as demand has increased. Certain countries are fearful of price fall.</p>
<p> </p>
<p><strong>Details</strong></p>
<ul>
<li>
<p>The OPEC+ group had made two year deal to reduce crude oil production in response to fall in prices, owing to decrease in demand.</p>
</li>
<li>
<p>The price had reached an 18 year low of less than $20 per barrel. Several exchanges had sold crude oil for negative rates.</p>
</li>
<li>
<p>The deal had envisioned an initial cut of 22 million barrels per day from the pre-pandemic levels. This was about 22 percent of a total output.</p>
</li>
<li>
<p>The price has since increased after vaccination process rolled out. Now the price stands at about $76 per barrel. The increase in demand was the reason for the rise in prices.</p>
</li>
</ul>
<p> </p>
<p><strong>UAE’s concerns</strong></p>
<ul>
<li>
<p>UAE wanted the bloc to increase production from August, without specifying the exact numbers. It has also not agreed for extension of production limit deal.</p>
</li>
<li>
<p>UAE feels that the OPEC+ deal had put limits without considering its production capacity. The production levels suggested to it were unfair.</p>
</li>
</ul>
<p> </p>
<p><strong>Effects on India</strong></p>
<ul>
<li>
<p>India was expecting that a suitable deal was reached between OPEC+ countries to increase daily production levels. Delay in reaching deal will further escalate the prices.</p>
</li>
<li>
<p>High crude prices have made petrol prices breach Rs 100 per litre mark in many states. It may further see inflation rate climb if prices don’t sober down.</p>
</li>
</ul>
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(int) 31 => object(Cake\ORM\Entity) {
'tag' => 'World Economy',
'keyword' => 'world-economy',
'id' => (int) 8801,
'title' => 'Major container shortage',
'description' => '<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Issue</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The freight rates have risen by over 300 per cent in the past year due to shortages in container for international shipping.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Background</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The government has asked exporters to help it in tiding over the crisis, which has hit key trading routes of the world.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Details</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Many containers have been left in inland depots and stuck at ports for long durations due to reduction in global shipping owing to the pandemic.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The reduction in shipping and also ships has led to fewer empty containers being picked up, causing the current crisis.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The shipping ports of the US have been congested, causing increase in turnaround time for ships to transport the containers.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The fast pickup of global trade has not been balanced with recovery of container market. The shipping charges were also increased due to recovery in international trade.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Impact on Indian exporters</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Indian exporters have been forced to wait longer to receive payment for exported goods. This is due to delay in shipments and liquidity issues.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The shipment time has been increased to 70-90 days instead of 40-45 days that has resulted in late payments for exporters.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Government’s role in addressing issue</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The government can control the export of empty containers as foreign importers are ready to pay premium on empty containers.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Exporters are also asking the government to release containers that have been confiscated by government agencies or abandoned.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">There is also demand to introduce a freight support scheme for all exports till the charges come back to normal.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Government can ask shipping companies to remove the premium charges on booking early and bring back bookings on a first come first serve basis.</span></span></p>
</li>
<li>
<p><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">The move by the government to manufacture shipping containers domestically needs to be further speeded up.</span></span></p>
</li>
</ul>
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(int) 32 => object(Cake\ORM\Entity) {
'tag' => 'World Economy',
'keyword' => 'world-economy',
'id' => (int) 8858,
'title' => 'Evergrande crisis',
'description' => '<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Issue</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Global markets witnessed a sharp slide due to financial crisis at Evergrande real-estate company of China.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Background</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Evergrande is biggest as well as most indebted real-estate company of China. It is expected that the situation may turn into a global financial crisis.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Details</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">There is an expectation that Chinese authorities may undertake a regulatory crackdown on the country’s real estate sector. </span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>The rise of Evergrande</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Evergrande has been the poster boy of the Chinese real estate boom. It started out in 1996 selling bottled water followed by venturing into big farming.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The company cashed on the demand for new homes to expand its operations. It was the main reason behind the post-pandemic Chinese economic expansion.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>The problems</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The investigations into digital business by Chinese authorities also started the probes into the high borrowings of property developers. </span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The company tried to sell some of its business. Due to slowing down of demand in the housing sector, the company is now facing cash crunch.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The company owes around $300 billion to the market. Its credit ratings have gone down and share prices have fallen.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Due to the problems, about 800 projects have been stopped. Many suppliers are waiting payment. Customers are waiting for completion of their homes.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Triggering of global crisis</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">China has been the major driver of global economic recovery. Slowdown in the market will have global repercussions.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The entire economy of the country may be affected if real estate sector collapses. This is because three quarters of the country’s household wealth is locked up in housing sector.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Apart from Evergrande, state-owned financial conglomerate Huarong is facing debts of $240 billion. This may be an indication of overall situation in the economy.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Effects on India</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">China is one of the largest destinations for Indian iron ore. Collapse of real-estate could reduce the demand for the commodity. Mining companies may also collapse.</span></span></p>
</li>
<li>
<p><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">Apart from India, global companies also saw a fall in their fortune. The richest 500 people lost a combined $135 billion.</span></span></p>
</li>
</ul>
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(int) 33 => object(Cake\ORM\Entity) {
'tag' => 'World Economy',
'keyword' => 'world-economy',
'id' => (int) 8886,
'title' => 'Federal Reserve’s stance and India',
'description' => '<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Issue</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The Federal Reserve has announced to maintain an ‘accommodative stance’ until inflation targets are achieved and employment targets reached.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Background</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Stock exchanges in India were worried ahead of the meeting of the Federal Reserve. The decisions have brought comfort to market participants.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Details</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The indications of rates being raised towards the end of 2022 and gradual tapering of the bond purchase programme is also a welcome sign.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>The effects</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The Sensex at Bombay Stock Exchange rose by 1.6 percent or 958 points to reach a new high of 59,885. </span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The Nifty at National Stock Exchange also rose by 1.57 per cent to reach 17,882. The possible concerns due to Evergrande default has also waned away.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"> </span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>The decisions</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The range for federal funds has been kept at 0 to 1/4 per cent. This will be maintained until labour market conditions achieve stability.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">To slow down the flow of liquidity, the market expects the Fed to start tapering of bond market. It will enhance diversion.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Implications of decision</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">A decline of $15 billion per month will be experienced in asset purchases. There is a projection that hike will be made by 25 basis points for at least three times in 2023.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The low rate by US Fed will ensure that fund flows from foreign portfolio investors (FPIs) into Indian equities.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>The road ahead</strong></span></span></p>
<p><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">Faster rate of vaccination is expected to neutralize the effects of a third wave. The economy will grow due to consumption-driven growth.</span></span></p>
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(int) 34 => object(Cake\ORM\Entity) {
'tag' => 'World Economy',
'keyword' => 'world-economy',
'id' => (int) 9031,
'title' => 'US plan for 1 trillion dollar platinum coin',
'description' => '<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Issue</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Some members of Democratic Party have suggested that a $1 trillion platinum coin may be issued to bypass the debt ceiling of the government.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Background</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Republicans and Democrats are involved in a conflict over the ceiling on U.S. Government debt.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Details</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The debt ceiling is the maximum amount that the government can borrow to finance its spending in a particular year.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The ceiling has been slowly increasing over the years from around $4 trillion in the early 1990s to $28.4 trillion in August, 2021. </span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The main aim of the debt ceiling is to prompt the government to spend within its limit. Most of the time the government is facing deficit, forcing it to borrow.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Conflicts</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Conflicts on debt ceiling are common between Republicans and Democrats whenever the other is in power. The incumbent government is always in fear of defaulting on its payment.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The current conflict is regarding plans by President Biden to spend $3 trillion on various social programmes. This needs the debt ceiling to be raised.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>The $1 trillion coin</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The token coin of the face-value will be paid to the U.S. Federal Reserve after getting issued from US treasury. The government does not have to borrow from market.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">In existing system, the US Federal Reserve sells bonds in the market to finance government’s borrowing. This increases government’s debt as bonds have to be paid back along with interest.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">When the $1 trillion coin is issued to the Federal Reserve, there will not be liabilities and debt ceiling will also not be elevated.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>The mechanism</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">A loophole in US law allows US treasury to mint platinum coins worth any denomination regardless of the actual platinum content.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The US treasury can thus mint a coin of any denomination and deposit it to US Federal Reserve and get equal amounts in dollars.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Concerns</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">There are concerns that pumping money into the economy will increase prices of goods and services. This has already been observed.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Supporting claims</strong></span></span></p>
<p><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">To prevent inflation, the US Federal Reserve will sell bonds worth the same amount in the market. This will suck out money and prevent inflation.</span></span></p>
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(int) 35 => object(Cake\ORM\Entity) {
'tag' => 'World Economy',
'keyword' => 'world-economy',
'id' => (int) 9067,
'title' => 'Slide in China’s GDP',
'description' => '<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Issue</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The industrial output of China grew lesser than expected, resulting in slowing down its GDP growth rate to 4.9% in the third quarter.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Background</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">China has been witnessing an economic slowdown owing to various reasons. The major reason has been financial crisis in its real estate sector.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Details</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The industrial production was expected to rise by 4-4.5% in September but it could manage to grow only by 3.1%.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">One reason could be the stable base from previous year as China had managed to record higher growth after recovering from pandemic.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The major reason could be systemic issues in its economy. It includes a massive fuel crunch, which has crippled Chinese industry.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The other could be the crisis in real estate sector fuelled by the Evergrande fiasco. In addition, souring of business sentiment due to federal crackdown has also played a part.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Indications from the data</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The marquee companies fuelling growth in China were less interested in investing in new projects.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The fuel crisis has crippled production of many power based companies such as automobiles. The coal shortage is also very prominent.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Factories in China’s industrial heartland had to curtail output in late September as non-availability of coal caused a major crisis.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Implications</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The output decreased drastically also due to non-availability of electricity. This was after the country witnessed shortage of fuel for electricity production.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The fixed asset investment came in lower than expected due to failure in real estate sector of the country. Many infrastructure projects have been scrapped.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Impact on India</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">China is India’s principal trading partner. The bilateral trade has grown by 50 per cent in the first nine months of 2021.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Imports from China grew to $68.5 billion in the first nine months of 2021. India’s trade deficit with China has grown to $46.55 billion during this period.</span></span></p>
</li>
<li>
<p><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">India’s trade with China is expected to cross $100 billion by the end of the year. India is still dependent on China for products such as fertilizers, electronic equipments, API, chemicals, telecom equipments and automobile parts.</span></span></p>
</li>
</ul>
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(int) 36 => object(Cake\ORM\Entity) {
'tag' => 'World Economy',
'keyword' => 'world-economy',
'id' => (int) 9168,
'title' => 'US and EU clash on steel and aluminium',
'description' => '<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Issue</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">A dispute over steel and aluminium tariffs between United States and European Union was resolved after a consensus on charges.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Details</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The United States has decided not to impose Section 232 duties introduced by former President Donald Trump.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">This will allow import of steel and aluminium without any duty from European Union at a historically decided volume.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Tariffs on US products such as whiskey, powerboats and Harley-Davidson motorcycles will be suspended by EU.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">To address carbon intensity and global overcapacity, US and EU will negotiate the world’s first carbon-based sectoral arrangement on steel and aluminium trade by 2024.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">US and EU will work together to restrict access to their markets for “dirty steel”. They will prevent countries that dump steel from access to their markets</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">There is a plan to bring like-minded countries such as Japan and Britain for resolving issues related to steel and aluminium.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>China’s challenge</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">China is the producer of more than half of the world's steel. This has created over-production and threatened other steel companies.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Steel industry is responsible for 10-20 percent of carbon emissions in the country. This makes it one of the largest CO<sub>2</sub> emitters of the world.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">China is aiming at making top five steelmakers to account for 40% of the country's total steel output by 2025.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Global expansion</strong></span></span></p>
<p><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">Domestic demand for iron and steel in China has plateaued. It is looking for expansion to markets that are growing very fast.</span></span></p>
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(int) 37 => object(Cake\ORM\Entity) {
'tag' => 'World Economy',
'keyword' => 'world-economy',
'id' => (int) 9232,
'title' => 'US inflation and its impact',
'description' => '<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Issue</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Retail inflation in US has spiked to 6.2 per cent in October. In India, retail inflation rose to 4.5 per cent according to India’s National Statistical Office (NSO).</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Background</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The inflation has gained lot of attention, both globally and in India. </span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Details</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Inflation is defined at a rate at which prices increase over a given period. Inflation rate is calculated on a year-on-year basis.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">If the rate of inflation for a particular month is 10 per cent, it implies that the prices in that month were 10 per cent more than the prices in the same month a year earlier.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The main problem is that inflation erodes purchasing power of people. The poor sections are most hurt as less money and higher prices affect the livelihood.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>The concern in US</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The 6.2 percent increase in inflation will not have much effect in India but it is the largest year-on-year increase in the last three decades in US.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The Federal Reserve targets an inflation rate of just 2 per cent. It is a massive concern for its citizens as the trend has been increasingly seen.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Cause of inflation in US</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The reason may be either due to increase in demand or a decrease in supply. The US has registered quick recovery after vaccination.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">There was unexpected recovery in all-round demand from consumers. The government invested billions of dollars to stimulate demand.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The demand for the consumables has increased but supply is yet to be fully back on track. This supply chain collapse has been a major reason for inflation.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Global situation</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The inflation in US has been the sharpest but other developed economies are also facing similar trend. This includes countries such as China, Japan and Germany.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Indian situation</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Inflation rise in India was observed even before pandemic. The pandemic has worsened the situation as supply chains collapsed.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The retail inflation rate in India has been above comfort level of RBI. This has forced RBI to keep rates unchanged even after India entered technical recession.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The core inflation is a sign of worry for India. It is expected to worsen after getting impacted due to the global situation.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Impact on India</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">As inflation grows in US, the prices of goods imported from US become costlier. The US Fed will likely tighten monetary policy.</span></span></p>
</li>
<li>
<p><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">Indian firms trying to raise money from outside India will find it costlier to do so. RBI will be forced to increase interest rates to align with international trend.</span></span></p>
</li>
</ul>
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(int) 38 => object(Cake\ORM\Entity) {
'tag' => 'World Economy',
'keyword' => 'world-economy',
'id' => (int) 9638,
'title' => 'US Fed decision impacts markets',
'description' => '<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Issue</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The release of minutes of Federal Reserve meeting has triggered a panic among markets across the world.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Background</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Indian share markets BSE Sensex and NSE Nifty witnessed a slump after four continuous days of gain.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Details</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The minutes of Federal Reserve meeting indicated that the American central bank might be contemplating to raise interest rates at a faster rate to counter runaway inflation.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The Central Bank believes that the domestic American job market is robust enough to handle raise in interest rates. There are plans to hike interest rates three times next year.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">This re-imposes belief that the Reserve is thinking of rolling back the financial stimulus that had till now feeding stock market gains across geographies.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>The American situation</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Many policy makers in US believe that the inflation was diffusing into more areas of the economy and would stay on for a much more time.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The Fed wants to taper off the bond purchases that inject money into the financial system by hiking interest steeply in a short period.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The US economy is facing one of highest inflations in the history. There is a threat to growth as runaway prices may wreck havoc.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Indications</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The move is seen as a reversal of the central bank’s expansionary monetary policy. It will curtail bond buying programme and bring down long-term interest rates.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The faster close-down of the bond-buying programme also means that interest rate hikes in the US are likely earlier than expected.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Concerns</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The high inflation will force the Fed to taper $30 billion a month of bonds instead of the $15 billion pace that it had announced earlier.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Bond buying</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Bond buying, also known as quantitative easing is an extraordinary measure to help the financial markets and the economy, counter the impact of the pandemic.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The bond buying is a monetary policy tool using which the central bank purchases longer-term securities from the open market in order to increase the money supply and incentivize lending and investment.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Implications on India</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Raising Fed Rates would reduce difference between the interest rates of the two countries, making countries such as India less attractive for the currency carry trade.</span></span></p>
</li>
<li>
<p><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">Higher returns in the US debt markets could impact emerging markets, reducing foreign investor enthusiasm.</span></span></p>
</li>
</ul>
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(int) 39 => object(Cake\ORM\Entity) {
'tag' => 'World Economy',
'keyword' => 'world-economy',
'id' => (int) 9656,
'title' => 'Record inflation in Eurozone',
'description' => '<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Issue</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The surging food and energy cost has resulted in highest level of inflation in the 19 countries that use the euro currency.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Background</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Consumer prices in European Union economies rose by 5 per cent in December compared with the previous year. The eurozone economies include major countries like France and Germany.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Details</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Energy prices have jumped by over 26 per cent over the past year, which however is lower than previous month.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Food prices have seen an increase to 3.2 per cent, from November’s 2.2 per cent rate. The price of goods rose at a rate of 2.9 per cent.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Price increase in services eased to 2.4 per cent. This was because rise on Omicron variant resulted in reduced demand for holiday travel. </span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Importance</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The latest numbers mark the highest level of inflation since recordkeeping for the euro currency began in 1997.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The numbers indicate that food at store to shopping trips and fuel are costing more as demand for goods grows after economic recovery.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">European Central Bank is under pressure to act on inflation since it has kept interest rates ultra-low to stimulate an economy.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Global inflation</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Inflation has grown globally including in the US, the fastest in last 39 years. Many previously stable economies such as Turkey have grappled to control the rate, which has soared to 36 percent.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The UK has also witnessed faster pace of inflation. The rate in Brazil has accelerated to more than 10 percent, the highest in last 10 years.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Global response</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Economies across the globe are raising interest rates to fight soaring inflation. This has been necessitated even as Omicron variant has been threatening economic slowdown.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The Bank of England last month raised its interest rates, becoming the first country in advanced economy to raise rates after pandemic began.</span></span></p>
</li>
<li>
<p><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">The US Fed has indicated that it will resort to tighter fiscal policies and unwind its bond buying programme to counter inflation.</span></span></p>
</li>
</ul>
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(int) 40 => object(Cake\ORM\Entity) {
'tag' => 'World Economy',
'keyword' => 'world-economy',
'id' => (int) 9691,
'title' => 'High inflation in US',
'description' => '<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Issue</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Inflation rate in US is at record high, impacting citizens in day to day life. The current rates are in the red zone, forcing federal authorities to act.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Background</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The effect of high inflation is seen by Americans at the used car lot, the supermarket, the gas station, the rental office.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Details</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Compared to 12 months earlier, the Labor Department reported that consumer prices jumped 7% in December.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The “core” inflation rose 5.5% over the past year, which is the fastest since 1991. The rate growth has been more than 10% on majority of consumer goods.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>The situation</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Barely a year ago, there was a belief that recession was on the cards after people were confined to their homes owing to the pandemic.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The forecast by Fed said that consumer prices would end 2021 only about 1.8% higher than they were a year earlier, below the target rate of 2%.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Earlier experts dubbed the sudden spike in rates as a transitionary problem due to shipping delays and temporary shortages of supplies.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Since the rates refused to die down, Fed policymakers had been divided over whether to raise rates even once this year. </span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Causes of inflation spike</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">It was believed that economy was set for a record recession as consumption dipped, employment rates dropped, investments were reduced and service sector fell apart.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The turnaround occurred after the Federal government pumped in money in form of aid and money infusion. Interest rates were slashed by Federal Reserve.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">As people started coming out, business were unable to meet demands. Ports and freight yards couldn’t handle the traffic as supply chain shattered.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>The rise</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Companies transferred the high cost to consumers, who had staked in savings during the pandemic induced lockdown.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The relief package announced by President Biden to every household overheated an economy that was already sizzling on its own.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Lasting of inflation</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The prices set to stay for some more time as companies struggle to keep up with consumers’ demand for goods and services. </span></span></p>
</li>
<li>
<p><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">The boosting jobs creation has ensured that Americans have money to spend on goods, further increasing prices. Control over money supply can ease some inflationary trends.</span></span></p>
</li>
</ul>
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(int) 41 => object(Cake\ORM\Entity) {
'tag' => 'World Economy',
'keyword' => 'world-economy',
'id' => (int) 9711,
'title' => 'India-UK free trade agreement negotiations',
'description' => '<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Issue</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">A formal negotiation for Free Trade Agreement (FTA) has been launched by India and the United Kingdom.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Background</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Currently, the focus would be to avoid sensitive issues, covering only about 65% goods and 40% of services.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Details</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Such deals are known as harvest deals and India is currently negotiating them with Australia, UAE, Canada and Israel.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Early harvest pacts</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Opening bilateral trade between two countries on a restricted list of goods and services is known as early harvest trade. It can be later extended for full fledged FTA.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">These pacts target only easy and non-controversial aspects, leaving tougher goods and services for later. The complete FTA will be delayed in such instances.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">India had completed early harvest pact with Thailand in 2004 but has been unable to wrap up FTA. Similarly, FTA with Sri Lanka could not be completed in services.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">These pacts are used tactically so that a deal may be achieved with minimum commitments and would allow for contentious issues to be resolved later.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Concerns</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Only early harvest pacts would attract challenges from other countries of WTO. This is because, full FTA is the only exception to WTO rules.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Early harvest deal may reduce the incentive for one side to work towards a full FTA as they may get benefits early.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Current FTAs by India</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">India is working on FTAs with a number of countries including Australia, US and EU. It also has PTAs with several countries.</span></span></p>
</li>
<li>
<p><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">The existing FTAs are comprehensive and cover goods, services, investment, IPR, etc. India is reviewing existing FTAs with South Korea, Japan and ASEAN on the ground of India’s rising trade deficit with these trading partners.</span></span></p>
</li>
</ul>
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(int) 42 => object(Cake\ORM\Entity) {
'tag' => 'World Economy',
'keyword' => 'world-economy',
'id' => (int) 9898,
'title' => 'Dropping Russia from SWIFT',
'description' => '<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Issue</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">There are fears that Russia will be removed from SWIFT payments system in case it invades Ukraine.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Background</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">SWIFT is a not-for-profit Belgian co-operative that provides secure messaging services for payments between banks.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Details</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">It is not the first time SWIFT has been at the centre of controversy. Earlier in 2012 and 2018 it was barred from providing payment service to Iran aftermath of the sanctions.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">While there were discussions earlier if SWIFT could be forced to suspend services to Russia, it was felt that it would not impact Russia.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Significance of SWIFT</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The SWIFT operates messaging system for banks for payment requests and keeping a record of them on servers in Europe and the US. </span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Even though there are other cross-border payments services, SWIFT plays a central role in banking.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Impact on Russia</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Russia accounts for 1.5 per cent of total transactions on SWIFT. Russia has an alternative messaging system called SPFS.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">SPFS handles about one fifth of Russian transactions but is less sophisticated and incapable of completely replacing SWIFT.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Response of SWIFT</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">SWIFT considers itself to be neutral and any decisions on exclusion of Russia have to be taken by respective governments and competent authorities.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">US Dollars constitute about 40% of its payment flows and thus Washington has effective powers to control it.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Society for Worldwide Interbank Financial Telecommunication (SWIFT)</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">SWIFT is a financial intermediary and executor of transactions between banks worldwide. It is also involved in selling software and services to financial institutions.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Working</strong></span></span></p>
<p><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">SWIFT does not involve in fund transfer but only sends payment orders, which must be settled by correspondent accounts.</span></span></p>
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(int) 43 => object(Cake\ORM\Entity) {
'tag' => 'World Economy',
'keyword' => 'world-economy',
'id' => (int) 10120,
'title' => 'US to ease curbs on Iran and Venezuela to boost oil supply',
'description' => '<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Issue</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">To counter sharp increase in crude oil prices due to sanctions on Russia, the US is planning to ease curbs on Venezuela and Iran.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Background</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Following Russia’s invasion of Ukraine, the US and its allies in Europe have imposed sanctions on Russia and its industries.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Details</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Russia is the third biggest producer of crude oil behind United States and Saudi Arabia. It is the second largest exporter of the commodity.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">If Russian oil is removed from global oil supply chains, there would not be a replacement. It could result in spiraling of crude prices.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Responses from allies</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">European allies, including Germany, have indicated that there would not be wider sanctions on Russian crude oil due to shortages.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The United Kingdom has also refused to sanction Russian crude but has instead announced that it would phase out purchases by the end of 2022.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Buyers are however fearful of reputational damage caused by engaging with Russia. There is also an issue of payment process due to ban on SWIFT.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Plan of increasing oil from Venezuela and Iran</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Iran and US are in the midst of reviving 2015 Iran nuclear deal. It will put a hold on nuclear programme in exchange for relaxations in economic sanctions, including oil export.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The talks have stalled following Russia’s demand for status quo of economic ties with Iran notwithstanding the sanctions.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Lifting sanctions will allow Iran to increase its crude oil production from 1.5 million barrels per day to 4 million barrels per day over a few months.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Venezuela has also indicated that it is looking forward to ramp up its crude oil production if sanctions on it are lifted.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>India’s response</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">India has supported the move to lift restrictions on Venezuela and Iran as it would help control price of crude in the market.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Considering it imports 85% of its needs, the price of crude oil will have large impact on domestic economy.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Significance</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The move signals that US is ready to work for the best interests of other countries by keeping its own issues apart.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The US has seen domestic inflation hit 7% and it would not want it to climb further due to increase in prices of fuel.</span></span></p>
</li>
<li>
<p><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">The move would signal the market to cool down following assurance of supply of crude oil to fulfill demands of the clients.</span></span></p>
</li>
</ul>
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(int) 44 => object(Cake\ORM\Entity) {
'tag' => 'World Economy',
'keyword' => 'world-economy',
'id' => (int) 10128,
'title' => 'Breadbasket region',
'description' => '<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Issue</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The war in Ukraine is threatening food security of the world, especially due to shortage of wheat.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Background</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The global food supply chain is highly dependent on cheap wheat being exported from Ukraine as well as Russia.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Details</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The Black Sea region in Europe is known as the breadbasket of the world for large wheat farms.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Many countries of Europe, Africa and Asia rely on the vast, fertile farmlands for their food supply.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Reasons for shortage</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Ukrainian farmers are forced to flee their farms due to fear of lives. Many of them have joined Ukrainian army to fight Russian forces.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Ukrainian ports that export wheat to other parts of the world have been shut due to Russian attacks.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Russian wheat exports are also impacted due to sanctions imposed by western bloc against trade.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Implications</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The prices of wheat have risen by 55% since the start of the war. Countries relying on affordable prices from Ukraine will be severely hit.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Ukraine has already banned export of wheat, buckwheat, corn, oats and cattle for domestic use.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Countries dominated by bread diet like middle-east will face severe shortages due to war. Many of the citizens in these countries survive on subsidized breads.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The prices of farm feed made out of wheat have been increased. This will cause rise in price of dairy and meat.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Farming in Ukraine</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Russia and Ukraine account for almost 30 percent of global wheat exports, almost 20 percent of corn exports, and more than 80 percent of the world supply of sunflower oil. </span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Ukraine forms a major part of global wheat and barley growing regions. It is a major supplier of corn and the global leader in sunflower oil.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Impact on India</strong></span></span></p>
<p><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">India is one of the largest importers of sunflower oil. Shortages of supply could raise the already high price of cooking oil.</span></span></p>
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'tag' => 'World Economy',
'keyword' => 'world-economy',
'id' => (int) 10130,
'title' => 'Most Favoured Nation status',
'description' => '<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Issue</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Russia’s “most favoured nation” (MFN) status will be revoked by the United States, the European Union, Britain, Canada and Japan.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Background</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The Russian invasion of Ukraine has attracted ire of western bloc and their allies, who are targeting Russia economically.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Details</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">It is a commitment of a country to treat other countries equally so they can all benefit from each other’s lowest tariffs, highest import quotas and fewest trade barriers for goods and services.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">This principle of non-discrimination provided by the 164 members of World Trade Organisation is known as most favoured nation (MFN) treatment. </span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Exceptions to MFN include bilateral trade agreements between countries and members offering developing countries special access to their markets.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">WTO members can impose trade measures without breaking rules on countries outside WTO such as Iran, North Korea, Syria and Belarus.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Revoking MFN status</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">A formal procedure is not present for revoking MFN status, or whether WTO has to be informed. India had revoked MFN status of Pakistan after Pulwama attack.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Effects of losing MFN status</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">It means that western countries do not consider Russia an economic partner in any way. It is a signal sent to express their position. It does not affect trade conditions.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">These countries can impose quota or higher tariffs on Russian goods. They can also completely ban them and restrict services. Russian IPR can also be overlooked.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The US has already banned Russian gas and oil. Canada also revoked MFN status of Russia and its ally Belarus.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Products being banned</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">European Union has banned import such as tobacco, potash and products made of wood or steel from Belarus.</span></span></p>
</li>
<li>
<p><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">Russian imports like mineral fuels, precious metals and stones, iron and steel, fertilizers and inorganic chemicals could also be banned in future.</span></span></p>
</li>
</ul>
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(int) 46 => object(Cake\ORM\Entity) {
'tag' => 'World Economy',
'keyword' => 'world-economy',
'id' => (int) 10155,
'title' => 'Discounted Russian oil',
'description' => '<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Issue</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The US Senate has said that India taking up Russia’s offer of discounted crude oil would not be a violation of American sanctions.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Background</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The US has imposed stringent economic sanctions on Russia, including a ban on import of Russian oil and gas.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Details</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Currently, India has bought 3 million barrels of Urals crude oil at the discounted price. Discount would be up to $20-$25 per barrel on dated Brent.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Offer by Russia</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Apart from discounts offered, Russia will also cover cost involved in shipments and also insurance of the commodity till it reaches Indian coast.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Benefits</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Diversifying oil import sources will help in reducing the financial burden on the government. It may cool off inflationary pressures.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The move will also ensure that bilateral relations with Russia remains strong as a result of India’s trade despite international pressure.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Reasons for discount</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Discount is a way by Russian oil companies to hold onto customers and increase sales amid crippling business and trade.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">It also wants to keep its relations with friendly nations intact by offering them discounts on imported oil.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Signal</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The move by India to buy Russian oil is a signal that it wants to keep its key trading partner on board despite Western sanctions.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">India is planning to make use of this opportunity to buy cheaper commodities such as fertilizer from Russia and Belarus.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Oil source </strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Russia is the third largest producer of crude oil and the second largest importer of the commodity.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Many countries in Europe are heavily dependent on Russia for their energy needs. India currently buys only 1.3 per cent of all its oil needs from Russia.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>India’s oil suppliers</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Currently, Iraq is the largest crude oil supplier for India, followed by United States and Nigeria.</span></span></p>
</li>
<li>
<p><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">Saudi Arabia slipped to the fourth position while United Arab Emirates went down to the fifth position of suppliers.</span></span></p>
</li>
</ul>
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(int) 47 => object(Cake\ORM\Entity) {
'tag' => 'World Economy',
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'title' => 'Russia’s external debt payments',
'description' => '<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Issue</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Russia is due to make a dollar-denominated payment to bondholders, which may be uncertain due to the unprecedented sanctions.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Background</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">This will be the first time since the 1998 financial crisis that Russia has defaulted on a bond payment.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Details</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">This is also the first time after the 1917 Bolshevik revolution that a default in taking place on international bonds.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Russia is due to pay $4.7 billion by the year-end apart from the $66 million that was to be paid by Monday.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>The situation</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Russia has a grace period of 30 days to pay $117 million on bonds issues in 2013. Russia was initially reluctant to send foreign currency as payment.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">A temporary respite was given to JPMorgan, which processed the cash and deposited it to Citigroup for giving it to bondholders.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Foreign investors hold $38 billion-worth of rouble-denominated sovereign bonds known as OFZs before this crisis, some of which have been due.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Russia has an option of alternative payments in other currencies, which needs a notice period of 15 days.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Future payment situation</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">There are temporary license provided for the receipt of interest, dividend, or maturity payments, which ends on March 25.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Russia still will have to make payments worth $2 billion after expiry. The biggest such test will be in May when license expires.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">For license to continue, a significant de-escalation has to take place from Russia’s side. Otherwise Russia will be forced to service the bonds in Rouble in its onshore accounts. This will be applicable only for Euro bonds and not Dollar bonds.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Implications of default</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">In case Russia defaults on bond payments, it will be locked out of the international borrowing markets until sanctions are lifted.</span></span></p>
</li>
<li>
<p><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">The credit ratings of the country would fall and the interest rates will be pushed up for borrowing by the government and private companies.</span></span></p>
</li>
</ul>
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'tag' => 'World Economy',
'keyword' => 'world-economy',
'id' => (int) 10309,
'title' => 'Europe’s ban on Russian energy',
'description' => '<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Issue</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The evidences of Bucha massacre has put pressure on European nations to further impose sanctions on oil and energy sectors of Russia.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Background</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Energy imports from Russia amounts to $850 million per day. Sanctions till now have spared oil and gas companies of Russia.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Details</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Countries in European Union get about 40% of their natural gas supply from Russia, which is used in industries as well as households.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">This number comes down to 25% in terms of crude oil dependency. It majorly goes towards producing petrol and diesel.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Any cut in supply of crude oil will result in rise of diesel prices. This will be catastrophic for transport and farming sector.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>European dependency on Russia</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Europe has very little of its own natural gas and crude oil deposits. The production of these commodities is declining, which has resulted in dependency on imports.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Comparatively, the US has little crude oil imports from Russia and no natural gas supply. The domestic production of US is also higher.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Challenges</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Replacing piped natural gas by LNG is costly and time-consuming. Only some places have the required LNG terminals that can supply to households.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Rest of the continent does not have infrastructure to connect to LNG terminals. LNG prices cannot be as cheap as piped natural gas from Russia.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Alternatives</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">European countries are looking for alternative supply from countries such as Norway as well as Algeria.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Many countries have already reduced Russian gas contracts. Most of them will be focusing on renewable energy sources to compensate for Russian gas.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Impact of banning Russian energy</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Prices will likely soar and countries would experience serious shortages. Many industries will be affected.</span></span></p>
</li>
<li>
<p><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">Large number of jobs may be hit and inflation may rise. A country may go towards recession as its revenue may decrease.</span></span></p>
</li>
</ul>
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<p>Consumer prices in the United States have rocketed to 8.5% in the month of March in this financial year.</p>
<p> </p>
<p><strong>Background</strong></p>
<p>The highest such rise was 7.9% that was witnessed in February, which itself was highest in the past 40 years.</p>
<p> </p>
<p><strong>Details</strong></p>
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<p>The growth is even higher than US Fed’s anticipation, which had predicted in 2020 that consumer inflation would stay below their 2% annual target and end 2021 at around 1.8%.</p>
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<p><strong>Observations</strong></p>
<p>Policy makers argued earlier that the higher inflationary rates were transitory due to shipping delays and temporary shortages of supplies after the pandemic.</p>
<p>The recent trend shows that inflation seems to stay for the upcoming days as demand has outstripped supply.</p>
<p> </p>
<p><strong>Actions</strong></p>
<p>The US Fed was forced to raise benchmark short-term rate by a quarter-point and will probably keep increasing.</p>
<p>It will seek to reverse the liquidity in the market that had helped revive the economy but also fuelled high inflation.</p>
<p>The main intention would be to rein in inflation without weakening it so much as to trigger a recession. </p>
<p> </p>
<p><strong>Start</strong> <strong>of</strong> <strong>crisis</strong></p>
<p>Following the paralysis of economy due to pandemic, the government and US Fed intervened to revive. Funds were infused and rates were slashed.</p>
<p>Businesses started to bloom and the demand outpaced supply as supply-chains failed to reinstate on time.</p>
<p>Cost of products began to rise and companies passed along the higher prices to customers in order to reduce their burden.</p>
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<p> </p>
<p><strong>Way</strong> <strong>forward</strong></p>
<p>Higher inflation is eroding purchasing power of consumers and many of them have stopped spending to save.</p>
<p>The US Fed has indicated that easy money policy will be curtailed to prevent people from borrowing or spending.</p>
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<p>Consumer prices in the United States have rocketed to 8.5% in the month of March in this financial year.</p>
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<p>Businesses started to bloom and the demand outpaced supply as supply-chains failed to reinstate on time.</p>
<p>Cost of products began to rise and companies passed along the higher prices to customers in order to reduce their burden.</p>
<p>Critics argue that President Biden’s $1.9 trillion Coronavirus relief package for overheating the economy. The US Fed rates of near zero were also criticized.</p>
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(int) 0 => [ 'name' => 'Home', 'link' => 'https://currentaffairs.studyiq.com/' ], (int) 1 => [ 'name' => 'World Economy', 'link' => 'https://currentaffairs.studyiq.com/tags/world-economy' ] ] $currentaffairs = [ (int) 0 => object(Cake\ORM\Entity) { 'tag' => 'World Economy', 'keyword' => 'world-economy', 'id' => (int) 174, 'title' => 'US-Canada move to WTO against India for MSP under-reporting of five pulses', 'description' => '<p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">United States and Canada have jointly approached World Trade Organisation (WTO) against India for allegedly under-reporting market price support (MSP) for five varieties of pulses viz. chickpeas, black matpe, pigeon peas, mung beans and lentils. In this regard, they have submitted counter notification with their own steeper calculations for scrutiny of members in WTO Committee on Agriculture (COA).</span></span></span></p> <p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-family:"Quicksand",serif">US-Canada accusations against India</span></strong></span></span></p> <ul> <li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">They have issues with regard India’s quantity of production used in MSP calculations, lack of information necessary to assess WTO compliance, problems with currency conversions and prices used in calculations.</span></span></span></li> <li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">Based on their calculations based on WTO Agreement on Agriculture (AoA) methodology, it was found that India has substantially underreported its market price support for these five pulses.</span></span></span></li> <li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">India's MSP for each of these pulses far exceeded its allowable levels of trade-distorting domestic support under WTO’s existing limits. </span></span></span></li> </ul> <p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-family:"Quicksand",serif">WTO Committee on Agriculture (COA)</span></strong></span></span></p> <ul> <li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">It oversees implementation of WTO Agriculture Agreement (WTO). It provides members with opportunity to share information on implementation of their commitments.</span></span></span></li> <li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">It also monitors implementation of number of decisions agreed at WTO's Ministerial Conferences especially in domain of export subsidies and agricultural trade, net-food importing developing countries, market access in agricultural trade and public stockholding for food security purposes.</span></span></span></li> <li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">In its meetings, members can ask each other questions about “notifications” shared by other members and may raise concerns about each other's agricultural policies.</span></span></span></li> </ul> ', 'created_date' => object(Cake\I18n\FrozenDate) {}, 'posturl' => 'us-canada-move-wto-against-india-msp- under-reporting', 'image' => 'https://www.mediafire.com/convkey/0a6b/zp2dk2l5tabypmo6g.jpg', 'fbimage' => 'https://www.mediafire.com/convkey/0a6b/zp2dk2l5tabypmo6g.jpg', 'metatitle' => 'US-Canada move to WTO against India for MSP under-reporting', 'metakeyword' => 'In Economy Current Affairs, US, Canada,jointly approach, World Trade Organisation,WTO, against India, under-reporting, market price support,MSP, five pulses, chickpeas, black matpe, pigeon peas, mung beans and lentils.', 'metadescription' => 'United States and Canada have jointly approached World Trade Organisation (WTO) against India for allegedly under-reporting market price support (MSP) for five varieties of pulses viz. chickpeas, black matpe, pigeon peas, mung beans and lentils.', 'author' => 'Nikhil Paigude', 'downlaodpdf' => 'http://www.mediafire.com/file/79a9085nglyvah2/16feb_US-Canada_move_to_WTO.pdf/file', '[new]' => false, '[accessible]' => [ [maximum depth reached] ], '[dirty]' => [[maximum depth reached]], '[original]' => [[maximum depth reached]], '[virtual]' => [[maximum depth reached]], '[errors]' => [[maximum depth reached]], '[invalid]' => [[maximum depth reached]], '[repository]' => 'currentaffairs' }, (int) 1 => object(Cake\ORM\Entity) { 'tag' => 'World Economy', 'keyword' => 'world-economy', 'id' => (int) 359, 'title' => 'US to withdraw preferential trade treatment to India', 'description' => '<p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">United States President Donald Trump has announced to end preferential trade treatment to India under GSP (Generalised System of Preferences). He has accused India of not providing US “equitable and reasonable access” to its markets. The termination India’s GSP beneficiary designation will come into effect after 60 days of notification sent to US Congress followed by enactment of Presidential Proclamation.</span></span></span></p> <p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-family:"Quicksand",serif">Generalised System of Preferences (GSP)</span></strong></span></span></p> <ul> <li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">It is preferential tariff system extended by developed countries to developing countries. It also known as preference receiving countries or beneficiary countries. It was introduced in 1976. </span></span></span></li> <li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">It is preferential arrangement in sense <em>that it allows concessional low or zero tariff imports from developing countries.</em> </span></span></span></li> <li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">Developed countries including US, EU, UK, Japan etc gives GSPs to imports from developing countries.</span></span></span></li> <li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">It is designed to promote economic development by allowing duty-free entry for thousands of products from designated beneficiary countries both developing and developed countries.</span></span></span></li> <li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-family:"Quicksand",serif">Objective of US-GSP:</span></strong><span style="font-family:"Quicksand",serif"> (i) Give development support to poor countries by promoting exports from them into developed countries. (ii) Promote sustainable development in beneficiary countries by helping these countries to increase and diversify their trade with US.</span></span></span></li> <li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-family:"Quicksand",serif">Criteria for US:</span></strong><span style="font-family:"Quicksand",serif"> Providing US with equitable and reasonable market access, respecting arbitral awards in favour of US citizens or corporations, providing adequate and effective intellectual property protection, combating child labour and respecting internationally recognised worker rights, among others.</span></span></span></li> <li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-family:"Quicksand",serif">Benefits:</span></strong><span style="font-family:"Quicksand",serif"> Under it, wide range of industrial and agricultural products originating from certain developing countries are given preferential access to US markets. </span></span></span></li> <li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">In India’s case, GSP enables duty-free entry of 3,500 goods in US markets, which benefits exporters of agriculture, textiles, engineering, gems and jewellery and chemical products. </span></span></span></li> <li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">Total US imports under GSP in 2017 was $21.2 billion, of which India was largest beneficiary with $5.6 billion, followed by Thailand ($4.2 billion) and Brazil ($2.5 billion). </span></span></span></li> </ul> <p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-family:"Quicksand",serif">Impact on India</span></strong></span></span></p> <p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">Bilateral trade between India and US stood at $74.5 billion in 2017-18. US has trade surplus of $27.3 billion. Terminating GSP status will put to end duty-free import of around 1900 goods from India into US. It will be strongest punitive action taken by President Donald Trump against as part of agenda of reducing US deficit with large economies.</span></span></span></p> <p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">According to Government, this withdrawal will not have any major impact on overall Indian exports to US as concessions availed under this scheme were minimal. Total GSP benefits availed by India under GSP programme were to tune of $190 million on trade $5.6 billion. So, benefits both in absolute sense, and as percentage of trade involved, are very minimal and moderate.</span></span></span></p> <p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-family:"Quicksand",serif">Background</span></strong></span></span></p> <ul> <li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">Withdrawal of GSP beneficiary status to India comes after over year of back-and-forth between two countries over trade issues. </span></span></span></li> <li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">The high tariffs imposed by India US goods has been contentious issue between two countries in past few years especially after Donald Trump became President.</span></span></span></li> <li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">Trump administration is demanding for relaxation in norms for exports of its medical devices and dairy products which India has denied. </span></span></span></li> <li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">This has led Donald Trump, who has resolved to reduce trade deficit of US with other countries (including India), to announce withdrawal of GSP status from India.</span></span></span></li> <li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">US goods and services trade deficit with India was $27.3 billion in 2017. The withdrawal of the status may reduce this gap.</span></span></span></li> </ul> ', 'created_date' => object(Cake\I18n\FrozenDate) {}, 'posturl' => 'generalised-system-of-preferences', 'image' => 'https://www.mediafire.com/convkey/7e55/1mf8221c3ld29zs6g.jpg', 'fbimage' => 'https://www.mediafire.com/convkey/7e55/1mf8221c3ld29zs6g.jpg', 'metatitle' => 'US to withdraw preferential trade treatment to India', 'metakeyword' => 'In Economy Current Affairs, US, Donald Trump, withdrawal, Generalised System of Preferences, India, Turkey, GSP Explained, Preferential Trade Treatment', 'metadescription' => 'US President Donald Trump has announced to end preferential trade treatment to India under GSP (Generalised System of Preferences). ', 'author' => 'Nikhil Paigude', 'downlaodpdf' => 'http://www.mediafire.com/file/aaxb1j3x7nx5g13/6MAR_US_to_withdraw_preferential.pdf/file', '[new]' => false, '[accessible]' => [ [maximum depth reached] ], '[dirty]' => [[maximum depth reached]], '[original]' => [[maximum depth reached]], '[virtual]' => [[maximum depth reached]], '[errors]' => [[maximum depth reached]], '[invalid]' => [[maximum depth reached]], '[repository]' => 'currentaffairs' }, (int) 2 => object(Cake\ORM\Entity) { 'tag' => 'World Economy', 'keyword' => 'world-economy', 'id' => (int) 437, 'title' => 'India ranks 11th in gold holding: WGC', 'description' => '<p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">According to latest report by World Gold Council (WGC), India is 11th largest gold reserve, with the current holding pegged at 607 tonnes. India is however, world’s largest consumer of gold.</span></span></span></p> <p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-family:"Quicksand",serif">Highlights of WGC report </span></strong></span></span></p> <ul> <li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-family:"Quicksand",serif">Top 10 Possessors of Gold reserves: </span></strong><span style="font-family:"Quicksand",serif">United States (8,133.5 tonnes), Germany (3369.7), International Monetary Fund (2814), Italy (2451.8), France (2436), Russia (2119.2), Mainland China (1864.3), Switzerland (1040), Japan (657), Netherlands (612.5), India (607.0), European Central Bank (504.8), Taiwan (423.6), Portugal (382.5) and Kazakhstan (353.3).</span></span></span></li> <li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-family:"Quicksand",serif">Asian countries:</span></strong><span style="font-family:"Quicksand",serif"> Mainland China (not including Taiwan) and Japan hold largest reserves of Gold. Mainland China has reserves of 1,864.3 tonnes and Japan has 765.2 tonnes of gold reserves.</span></span></span></li> <li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-family:"Quicksand",serif">Gold Demand: </span></strong><span style="font-family:"Quicksand",serif">The appetite of central banks across the world for gold remains healthy following the multi-decade high in gold reserves growth in 2018<strong>.</strong></span></span></span></li> <li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">The demand for gold was concentrated among emerging market central banks, with diversification key driver in face of ongoing geopolitical and economic uncertainty.<strong> </strong></span></span></span></li> </ul> <p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-family:"Quicksand",serif">World Gold Council (WGC)</span></strong></span></span></p> <ul> <li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">It is market development organization for the gold industry. It is headquartered in London, United Kingdom (UK).</span></span></span></li> <li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">It is association whose members comprise world’s leading gold mining companies. </span></span></span></li> <li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-family:"Quicksand",serif">Functions:</span></strong><span style="font-family:"Quicksand",serif"> It works across all parts of industry, from gold mining to investment. It seeks to provide industry leadership and stimulate and sustain demand for gold.<strong> </strong></span></span></span></li> <li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">It also provides insights into international gold markets, help people to better understand wealth preservation qualities of gold and its role in meeting social and environmental needs of society.</span></span></span></li> </ul> ', 'created_date' => object(Cake\I18n\FrozenDate) {}, 'posturl' => 'india-ranks-11th-gold-holdings', 'image' => 'https://www.mediafire.com/convkey/ea9e/8ckgmcj7omtd0l46g.jpg', 'fbimage' => 'https://www.mediafire.com/convkey/ea9e/8ckgmcj7omtd0l46g.jpg', 'metatitle' => 'India ranks 11th in gold holding: WGC', 'metakeyword' => 'In Business and Economy Current Affairs, India ranks 11th in gold holding, World Council of Gold', 'metadescription' => 'India ranks 11th in gold holding: WCG, According to latest report by World Gold Council (WGC), India is 11th largest gold reserve, with the current holding pegged at 607 tonnes.', 'author' => 'Nikhil Paigude', 'downlaodpdf' => 'https://www.mediafire.com/file/s65ybq5s1qv3arv/12Mar_India_ranks_11th_in_gold_holding.pdf/file', '[new]' => false, '[accessible]' => [ [maximum depth reached] ], '[dirty]' => [[maximum depth reached]], '[original]' => [[maximum depth reached]], '[virtual]' => [[maximum depth reached]], '[errors]' => [[maximum depth reached]], '[invalid]' => [[maximum depth reached]], '[repository]' => 'currentaffairs' }, (int) 3 => object(Cake\ORM\Entity) { 'tag' => 'World Economy', 'keyword' => 'world-economy', 'id' => (int) 552, 'title' => 'Guatemala files complaint over India’s sugar subsidies at WTO', 'description' => '<p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">Guatemala has initiated new dispute complaint against India over sugar subsidies provided to farmers at World Trade Organization (WTO), alleging that it is inconsistent with global trade rules. Brazil and Australia also have lodged their separate complaints at WTO on this matter. All these countries have alleged that continued sugar subsidies to farmers by India, world's second-largest sugar producer has led to "glut" and "depressed" global sugar prices. </span></span></span></p> <p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-family:"Quicksand",serif">Guatemala’s complaint</span></strong></span></span></p> <p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">Guatemala has sought consultations with India under rules and procedures governing settlement of disputes of WTO with respect to domestic support measures maintained by India in favour of producers of sugarcane and sugar, and export subsidies for sugarcane and sugar.</span></span></span></p> <p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">It claims that domestic support measures are inconsistent with India’s obligations under WTO’s Agreement on Agriculture (AoA). It also claims that export subsidies are inconsistent with India’s obligations under the AoA and Agreement on Subsidies and Countervailing Measures (SCM Agreement).</span></span></span></p> <p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-family:"Quicksand",serif">India’s response</span></strong></span></span></p> <p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">India has defended its position at WTO in informal discussions by explaining that most of its subsidies to sugar producers were in form of production subsidies that was permissible under the WTO. Besides, subsidies to exporters given for exports was for marketing and transportation purposes which, too are permitted by the WTO,</span></span></span></p> <p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-family:"Quicksand",serif">Consultations Mechanism</span></strong></span></span></p> <p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">Seeking consultation is first step of dispute settlement process in WTO. If the two nations are not able to reach mutually agreed solution through consultation, either country may request for WTO dispute settlement panel to review the matter. </span></span></span></p> <p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">Under this dispute settlement mechanism, India now has to hold separate consultations with Australia, Brazil and Guatemala to listen to their concerns and explain its position. </span></span></span></p> <p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">EU, Thailand and Costa Rica also have expressed their interest in participating in the consultations requested by Australia and Brazil with India as they were interested parties.</span></span></span></p> ', 'created_date' => object(Cake\I18n\FrozenDate) {}, 'posturl' => 'guatemala-files-complaint-over-indias-sugar-subsidies-wto', 'image' => 'https://www.mediafire.com/convkey/bc46/l3iw1yogda5flng6g.jpg', 'fbimage' => 'https://www.mediafire.com/convkey/bc46/l3iw1yogda5flng6g.jpg', 'metatitle' => 'Guatemala files complaint over India’s sugar subsidies at WTO', 'metakeyword' => 'In Economy Current Affairs, Guatemala, new dispute complaint, against India, sugar subsidies, provided to farmers, World Trade Organization, WTO, global trade rules', 'metadescription' => 'Guatemala has initiated new dispute complaint against India over sugar subsidies to provided to farmers at World Trade Organization (WTO), alleging that it is inconsistent with global trade rules', 'author' => null, 'downlaodpdf' => 'https://www.mediafire.com/file/oox58n9ndxq1aud/Guatemala_files_complaint.pdf/file', '[new]' => false, '[accessible]' => [ [maximum depth reached] ], '[dirty]' => [[maximum depth reached]], '[original]' => [[maximum depth reached]], '[virtual]' => [[maximum depth reached]], '[errors]' => [[maximum depth reached]], '[invalid]' => [[maximum depth reached]], '[repository]' => 'currentaffairs' }, (int) 4 => object(Cake\ORM\Entity) { 'tag' => 'World Economy', 'keyword' => 'world-economy', 'id' => (int) 720, 'title' => 'India's GDP to expand 7.5% in 2019-20: World Bank', 'description' => '<p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif">According to World Bank latest report on South Asia, India's GDP growth is expected to accelerate moderately to 7.5% in fiscal year 2019-20. It will be driven by continued investment strengthening-particularly private, improved export performance and resilient consumption. The report came ahead of spring meeting of World Bank and International Monetary Fund (IMF).</span></span></span></span></p> <p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif">Report highlights</span></span></strong></span></span></p> <ul> <li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif">The real GDP growth was estimated at 7.2% in financial year 2018-19. Data for first three quarters suggest that growth was broad-based. </span></span></span></span></li> <li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif">Industrial growth accelerated to 7.9%, making up for a deceleration in services. Besides, agriculture growth was robust at 4</span></span><span style="font-size:12.0pt">%</span><span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif">.</span></span></span></span></li> <li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif">On the demand side, domestic consumption remained primary growth driver. Moreover, gross fixed capital formation and exports both also made growing contributions. </span></span></span></span></li> <li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif">Over last quarter, growth is expected to remain balanced across sectors. Inflation dynamics also have been subdued over most of FY18/19<strong>.</strong></span></span></span></span></li> <li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif">India's GDP growth is expected to accelerate moderately to 7.5% in FY19/20/ With robust growth, and food prices poised to recover, inflation is expected to converge toward 4%. </span></span></span></span></li> <li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif">Moreover, both the current account and the fiscal deficit are expected to narrow. On the external front, improvements in India's export performance and low oil prices will also bring about reduction in CAD to 1.9% of GDP.</span></span></span></span></li> <li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif">On the internal front, consolidated fiscal deficit is projected to decline, albeit slowly (to 6.2 and 6.0</span></span><span style="font-size:12.0pt">%</span><span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif"> of GDP in FY19/20 and FY20/21 respectively). </span></span></span></span></li> <li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif">As center's deficit is budgeted to remain unchanged at 3.4% of GDP in FY19/20, burden of adjustment will rest on states.</span></span></span></span></li> <li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif">There is steady decline in inflation due to sustained decline in food prices since July 2018, subsequently complemented by softening of oil prices and concomitant appreciation of the rupee.</span></span></span></span></li> </ul> ', 'created_date' => object(Cake\I18n\FrozenDate) {}, 'posturl' => 'india-gdp-to-expand-2019-20-world-bank', 'image' => 'https://www.mediafire.com/convkey/5aee/y6aaac84eovsfu86g.jpg', 'fbimage' => 'https://www.mediafire.com/convkey/5aee/y6aaac84eovsfu86g.jpg', 'metatitle' => 'India GDP to expand 7.5% in 2019-20: World Bank', 'metakeyword' => 'In Business and Economy Current Affairs, India GDP to expand 7.5% in 2019-20: World Bank', 'metadescription' => 'India GDP to expand 7.5% in 2019-20: World Bank, According to World Bank latest report on South Asia, India's GDP growth is expected to accelerate moderately to 7.5% in fiscal year 2019-20. ', 'author' => 'Nikhil Paigude', 'downlaodpdf' => 'https://www.mediafire.com/file/kknbtjtft94spee/India%27s_GDP_to_expand.pdf/file', '[new]' => false, '[accessible]' => [ [maximum depth reached] ], '[dirty]' => [[maximum depth reached]], '[original]' => [[maximum depth reached]], '[virtual]' => [[maximum depth reached]], '[errors]' => [[maximum depth reached]], '[invalid]' => [[maximum depth reached]], '[repository]' => 'currentaffairs' }, (int) 5 => object(Cake\ORM\Entity) { 'tag' => 'World Economy', 'keyword' => 'world-economy', 'id' => (int) 715, 'title' => 'India highest recipient of remittances in 2018: World Bank', 'description' => '<p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif">According to recently published World Bank's Migration and Development brief, India retained its position as world's top recipient of remittances by receiving record $79 billion back home in 2018. India was followed by China ($67 billion), Mexico ($36 billion), Philippines ($34 billion), and Egypt ($29 billion).</span></span></span></span></p> <p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif">Key Highlights of WB Brief </span></span></strong></span></span></p> <ul> <li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif">Global remittances: </span></span></strong><span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif">Including high-income countries has reached $689 billion in 2018, up from $633 billion in 2017. Remittances are on track to become largest source of external financing in developing countries.</span></span></span></span></li> <li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif">Remittances to low-and middle-income countries: </span></span></strong><span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif">It has reached record high of $529 billion in 2018, an increase of 9.6% over the previous record high of $483 billion in 2017.</span></span></span></span></li> <li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif">Remittance to India:</span></span></strong><span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif"> Over the last three years, India has registered significant flow of remittances from $62.7 billion in 2016 to $65.3 billion 2017. Remittances grew by more than 14% in India. Flooding disaster in Kerala has likely boosted financial help that migrants sent to families.</span></span></span></span></li> <li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif">Remittances to South Asia: </span></span></strong><span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif">It grew 12% to $131 billion in 2018, outpacing the 6</span></span><span style="font-size:12.0pt">%</span><span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif"> growth in 2017. The upsurge was driven by stronger economic conditions in United States and pick-up in oil prices, which had positive impact on outward remittances from some Gulf Cooperation Council (GCC) countries.</span></span></span></span></li> <li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif">Avg cost of sending remittance: </span></span></strong><span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif">Global average cost of sending $200 remittance remained high, at around 7% in first quarter of 2019. </span></span></span></span></li> <li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif">The high costs of money transfers reduce benefits of migration. Reducing remittance costs to 3% by 2030 is global target under Sustainable Development Goal (SDG) 10.7.</span></span></span></span></li> <li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif">There is need for renegotiating exclusive partnerships and allowing players operate through national post offices, banks, and telecommunications companies to increase competition for opening new transferring and lowering remittance prices.</span></span></span></span></li> </ul> ', 'created_date' => object(Cake\I18n\FrozenDate) {}, 'posturl' => 'india-highest-recipient-remittances-2018-world-bank', 'image' => 'https://www.mediafire.com/convkey/cd4b/1b27ifg6kjsn81o6g.jpg', 'fbimage' => 'https://www.mediafire.com/convkey/cd4b/1b27ifg6kjsn81o6g.jpg', 'metatitle' => 'India highest recipient of remittances in 2018: World Bank', 'metakeyword' => 'In Business and Economy Current Affairs, India highest recipient of remittances in 2018: World Bank', 'metadescription' => 'India highest recipient of remittances in 2018: World Bank, According to recently published World Bank's Migration and Development brief,', 'author' => 'Nikhil Paigude', 'downlaodpdf' => 'https://www.mediafire.com/file/sgsb4ls7f9avs1r/India_highest_recipient.pdf/file', '[new]' => false, '[accessible]' => [ [maximum depth reached] ], '[dirty]' => [[maximum depth reached]], '[original]' => [[maximum depth reached]], '[virtual]' => [[maximum depth reached]], '[errors]' => [[maximum depth reached]], '[invalid]' => [[maximum depth reached]], '[repository]' => 'currentaffairs' }, (int) 6 => object(Cake\ORM\Entity) { 'tag' => 'World Economy', 'keyword' => 'world-economy', 'id' => (int) 742, 'title' => 'India needs to bolster level of capitalisation of state-owned banks: IMF', 'description' => '<p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif">International Monetary Fund’s (IMF) Financial Sector Assessment Programme (FSAP) for India has recommended bolstering level of capitalisation of some banks, particularly government-owned banks. This is required considering high level of non-performing loans in India.</span></span></span></span></p> <p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif">Highlights of FSAP for India</span></span></strong></span></span></p> <p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif">It also has recommended</span></span> r<span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif">esolution and recognition of Non-performing loans as part of process of cleaning up the banking system of non-performing loans. It also acknowledged that some steps that were taken by authorities to boost capital buffers in banks and also to improve governance in state-owned banks that have had some positive impact.</span></span></span></span></p> <p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif">Financial Sector Assessment Programme (FSAP)</span></span></strong></span></span></p> <ul> <li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif">It is comprehensive and in-depth analysis of country’s financial sector. Its assessments are joint responsibility of the IMF and World Bank in developing economies and emerging markets and of IMF alone in advanced economies. </span></span></span></span></li> <li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif">It includes two major components: (i) financial stability assessment, which is the responsibility of the IMF, and (ii) financial development assessment, which is responsibility of World Bank. </span></span></span></span></li> <li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:12.0pt"><span style="font-family:"Quicksand",serif">Two-fold goal of FSAP assessments: Gauge stability and soundness of financial sector and assess its potential contribution to growth and development.</span></span></span></span></li> </ul> ', 'created_date' => object(Cake\I18n\FrozenDate) {}, 'posturl' => 'india-bolster-level-capitalisation-state-owned-banks-imf', 'image' => 'https://www.mediafire.com/convkey/b7f1/eksl2yq809av82o6g.jpg', 'fbimage' => 'https://www.mediafire.com/convkey/b7f1/eksl2yq809av82o6g.jpg', 'metatitle' => 'India need to bolster level of capitalisation of state-owned bank', 'metakeyword' => 'India needs to bolster level of capitalisation of state-owned banks: IMF ', 'metadescription' => 'International Monetary Fund, IMF, Financial Sector Assessment Programme, FSAP, bolstering level of capitalisation, some banks, particularly government-owned banks', 'author' => 'Nikhil Paigude', 'downlaodpdf' => 'https://www.mediafire.com/file/ai8ar6vjwg6xdm6/India_needs_to_bolster_level.pdf/file', '[new]' => false, '[accessible]' => [ [maximum depth reached] ], '[dirty]' => [[maximum depth reached]], '[original]' => [[maximum depth reached]], '[virtual]' => [[maximum depth reached]], '[errors]' => [[maximum depth reached]], '[invalid]' => [[maximum depth reached]], '[repository]' => 'currentaffairs' }, (int) 7 => object(Cake\ORM\Entity) { 'tag' => 'World Economy', 'keyword' => 'world-economy', 'id' => (int) 827, 'title' => 'US, Singapore, Taiwan seek to join consultations in WTO dispute over India's tariffs on ICT goods', 'description' => '<p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">United States (US), Singapore and Chinese Taipei (Taiwan) have expressed their interest to join consultations sought by European Union (EU) under World Trade Organization's (WTO) dispute settlement mechanism against India's import duties on certain Information Communication and Technology (ICT) products, including mobile phones. As per the WTO rules, these three countries would have to seek approval from India and EU to join the consultation process.</span></span></span></p> <p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-family:"Quicksand",serif">Background</span></strong></span></span></p> <p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">In April 2019, EU dragged India into the WTO's dispute settlement mechanism over imposition of import duties on these products, alleging breach of global trade norms. EU has challenged introduction of import duties by India on wide range of ICT products, for instance, mobile phones and components, base stations, integrated circuits and optical instruments. EU has requested consultations with India under WTO rules governing the settlement of disputes with regard to the tariff treatment that the country accords to certain goods in the ICT sector.</span></span></span></p> <p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-family:"Quicksand",serif">Consultation seeking process</span></strong></span></span></p> <p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Quicksand",serif">Seeking consultation is the first step of dispute settlement process as per WTO rules. If consultations requested with both India and EU do not result in satisfactory solution, EU can request WTO to set up panel in the case to rule on the issue raised.</span></span></span></p> ', 'created_date' => object(Cake\I18n\FrozenDate) {}, 'posturl' => 'wto-consultations-dispute-over-tariffs-ict-goods', 'image' => 'https://www.mediafire.com/convkey/14a7/xfxp38wme1a7gzv6g.jpg', 'fbimage' => 'https://www.mediafire.com/convkey/14a7/xfxp38wme1a7gzv6g.jpg', 'metatitle' => 'US, Singapore, Taiwan seek to join consultations in WTO', 'metakeyword' => 'In International Current Affairs, US, Singapore, Taiwan seek to join consultations in WTO dispute over India's tariffs on ICT goods', 'metadescription' => 'US, Singapore, Taiwan seek to join consultations in WTO dispute over India's tariffs on ICT goods', 'author' => 'Nikhil Paigude', 'downlaodpdf' => 'https://www.mediafire.com/file/e3c53r3c13ie7mv/US%2C_Singapore%2C_Taiwan.pdf/file', '[new]' => false, '[accessible]' => [ [maximum depth reached] ], '[dirty]' => [[maximum depth reached]], '[original]' => [[maximum depth reached]], '[virtual]' => [[maximum depth reached]], '[errors]' => [[maximum depth reached]], '[invalid]' => [[maximum depth reached]], '[repository]' => 'currentaffairs' }, (int) 8 => object(Cake\ORM\Entity) { 'tag' => 'World Economy', 'keyword' => 'world-economy', 'id' => (int) 1144, 'title' => 'India projected to grow at 7.1% in FY20: UN-WESP Report', 'description' => '<p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">According to recently released World Economic Situation and Prospects (WESP) as of mid-2019, India's economy is projected to grow at 7.1</span></span><span style="font-size:10.0pt"><span style="font-family:"Times New Roman","serif"">%</span></span><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif""> in the fiscal year 2020. This growth will be driven by strong domestic consumption and investment. With this, India remains fastest growing major economy in the world, ahead of China. However, it has revised India’s growth projections from 7.4</span></span><span style="font-size:10.0pt"><span style="font-family:"Times New Roman","serif"">% </span></span><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">estimated in January 2019.</span></span></span></span></p> <p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">Key Highlights of WESP as of Mid-2019</span></span></strong></span></span></p> <p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">Global growth projections:</span></span></strong><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif""> Across both developed and developing countries, growth projections for 2019 have been downgraded. It is mainly due to unresolved trade tensions and elevated international policy uncertainty. Following an expansion of 3.0</span></span><span style="font-size:10.0pt"><span style="font-family:"Times New Roman","serif"">% </span></span><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">in 2018, world gross product growth is now projected to moderate to 2.7</span></span><span style="font-size:10.0pt"><span style="font-family:"Times New Roman","serif"">%</span></span><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">% in 2019 and 2.9</span></span><span style="font-size:10.0pt"><span style="font-family:"Times New Roman","serif"">%</span></span><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif""> in 2020.</span></span></span></span></p> <p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">Risks that could trigger prolonged global slowdown:</span></span></strong><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif""> Further escalation in trade disputes, sudden deterioration in financial conditions, and accelerating effects of climate change. The increase in frequency and intensity of natural disasters highlight rising threats from climate change, particularly for the most vulnerable economies.</span></span></span></span></p> <p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">Monetary Policy:</span></span></strong><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif""> The slowdown in global economic activity has triggered shift towards easier monetary policy stances across many developed and developing economies. This shift is taking place in environment of subdued global inflation, amid weakening demand and moderate outlook for global commodity prices.</span></span></span></span></p> <p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">South Asia:</span></span></strong><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif""> It remains on strong growth path, even as forecasts have been revised downward. Following an expansion of 5.7</span></span><span style="font-size:10.0pt"><span style="font-family:"Times New Roman","serif"">% </span></span><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">in 2018, GDP growth is estimated at 5.0</span></span><span style="font-size:10.0pt"><span style="font-family:"Times New Roman","serif"">% </span></span><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">in 2019 and 5.8</span></span><span style="font-size:10.0pt"><span style="font-family:"Times New Roman","serif"">% </span></span><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">in 2020. However, across region, output continues to be constrained by infrastructure bottlenecks. Indian economy accounts for two-thirds of regional output in South Asia.</span></span></span></span></p> <p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">India’s growth projections:</span></span></strong><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif""> India's economy is projected to grow at 7</span></span><span style="font-size:10.0pt"><span style="font-family:"Times New Roman","serif"">%</span></span><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">% in the fiscal year 2019 and 7.1</span></span><span style="font-size:10.0pt"><span style="font-family:"Times New Roman","serif"">%</span></span><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif""> in the fiscal year 2020 on the back of strong domestic consumption and investment. India's exports remain more robust, as around half of exports are destined for faster-growing Asian markets.</span></span></span></span></p> <p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">About WESP report</span></span></strong></span></span></p> <p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">It is joint product of United Nations Department of Economic and Social Affairs (UN/DESA), United Nations Conference on Trade and Development (UNCTAD) and five UN regional commissions.</span></span></span></span></p> ', 'created_date' => object(Cake\I18n\FrozenDate) {}, 'posturl' => 'india-projected-grow-wesp-report', 'image' => 'https://www.mediafire.com/convkey/d654/w4z6iqknobehh6n6g.jpg', 'fbimage' => 'https://www.mediafire.com/convkey/d654/w4z6iqknobehh6n6g.jpg', 'metatitle' => 'India projected to grow at 7.1% in FY20: UN-WESP Report', 'metakeyword' => 'World Economic Situation and Prospects (WESP) as of mid-2019, India's economy is projected to grow at 7.1% in the fiscal year 2020.', 'metadescription' => 'According to recently released World Economic Situation and Prospects (WESP) as of mid-2019, India's economy is projected to grow at 7.1% in the fiscal year 2020.', 'author' => 'Nikhil Paigude', 'downlaodpdf' => 'https://www.mediafire.com/file/nwt261wd2jnrx7r/India_projected.pdf/file', '[new]' => false, '[accessible]' => [ [maximum depth reached] ], '[dirty]' => [[maximum depth reached]], '[original]' => [[maximum depth reached]], '[virtual]' => [[maximum depth reached]], '[errors]' => [[maximum depth reached]], '[invalid]' => [[maximum depth reached]], '[repository]' => 'currentaffairs' }, (int) 9 => object(Cake\ORM\Entity) { 'tag' => 'World Economy', 'keyword' => 'world-economy', 'id' => (int) 1236, 'title' => 'India-China IT and DT Industry Cooperation Forum held in China', 'description' => '<p style="margin-left:0in; margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">The 2019 Sino-India IT and DT Industry Cooperation Forum was held in Guiyang (Guizhou), China to encourage IT companies. It seeks to create new chapter in India-China cooperation in the new era of digital transition. It was held on sidelines of International Big Data Industry Expo 2019. </span></span></span></span></p> <p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">International Big Data Industry Expo 2019</span></span></strong></span></span></p> <ul> <li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">It was four-day event is being attended by 448 enterprises from 59 countries. It featured high-end dialogues, forums, contests and exhibitions highlighting the technical innovations. </span></span></span></span></li> <li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">It was being attended by representatives of companies like Apple, Qualcomm, Huawei, Tencent, Alibaba and Foxconn. </span></span></span></span></li> <li style="text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">It was initiated in 2015 and since then this expo has become important annual event for the big data industry. Last year, it had attracted over 40,000 participants from 30 countries. </span></span></span></span></li> </ul> ', 'created_date' => object(Cake\I18n\FrozenDate) {}, 'posturl' => 'india-china-it-dt-industry-cooperation-forum', 'image' => 'https://www.mediafire.com/convkey/4439/uq6qkbk3jbcqv7e6g.jpg', 'fbimage' => 'https://www.mediafire.com/convkey/4439/uq6qkbk3jbcqv7e6g.jpg', 'metatitle' => 'India-China IT and DT Industry Cooperation Forum held in China', 'metakeyword' => 'India-China IT and DT Industry Cooperation Forum held in China', 'metadescription' => 'India-China IT and DT Industry Cooperation Forum held in China, The 2019 Sino-India IT and DT Industry Cooperation Forum was held in Guiyang (Guizhou),', 'author' => 'Nikhil Paigude', 'downlaodpdf' => '', '[new]' => false, '[accessible]' => [ [maximum depth reached] ], '[dirty]' => [[maximum depth reached]], '[original]' => [[maximum depth reached]], '[virtual]' => [[maximum depth reached]], '[errors]' => [[maximum depth reached]], '[invalid]' => [[maximum depth reached]], '[repository]' => 'currentaffairs' }, (int) 10 => object(Cake\ORM\Entity) { 'tag' => 'World Economy', 'keyword' => 'world-economy', 'id' => (int) 1845, 'title' => 'Trump accuses China of 'currency manipulation', 'description' => '<p><strong><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">Context: </span></span></strong><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">On 5/08/2019, the <strong>US Treasury Department declared that China is a currency manipulator. </strong>The move came after <strong>the People’s Bank of China</strong> (PBOC), the central bank of China<strong>, allowed the yuan to suddenly depreciate </strong>(or lose value) relative to <strong>the dollar by 1.9 per cent </strong>(one of the biggest single-day falls</span></span><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">)</span></span><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">. As a result, the <strong>yuan breached the 7-to-a-dollar-mark for the first time since 2008.</strong></span></span><strong> </strong><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">In retaliation, the US announced that it would approach the IMF <strong>“to eliminate the unfair competitive advantage created by China’s latest actions.”</strong></span></span></p> <p> </p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>What is a currency’s exchange rate?</strong></span></span></p> <ul> <li><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">An exchange rate is the <strong>value of a nation's currency in terms of the currency of another nation or economic zone.</strong></span></span></li> </ul> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>How are exchange rates determined?</strong></span></span></p> <ul> <li><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>In an ideal world</strong>, the exchange rate for any currency would be <strong>determined by the interplay of its demand and supply. </strong>If more Indians want to buy US goods, there would be a higher demand for the dollar relative to the rupee. </span></span></li> <li><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">This, in turn, would mean the dollar would be “stronger” than the rupee — and gain in strength as the demand increases. If demand falls, the dollar would depreciate relative to the rupee (or the rupee would appreciate relative to the dollar).</span></span></li> </ul> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>W</strong><strong>hat is currency manipulation?</strong></span></span></p> <ul> <li><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>The real world is far from ideal. </strong>Most governments and central banks are bothered about generating more growth and employment at home<strong>. A weaker domestic currency comes in very handy when governments are trying to attract foreign demand and boost exports. </strong>China’s economic growth has been essentially fuelled by exporting to the world.</span></span></li> <li><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Currency manipulation happens <strong>when governments try to artificially tweak the exchange rate to gain an “unfair” advantage in trade</strong>.</span></span></li> <li><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">In other words, if <strong>China’s central bank buys dollars in the forex market, it can artificially weaken the yuan</strong><strong> </strong>and <strong>Chinese goods will then become more affordable (and competitive) in the international market.</strong></span></span></li> </ul> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Can currency manipulation be justified?</strong></span></span></p> <ul> <li><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Some amount of such “intervention” </strong>by central banks is <strong>allowed to reduce wild fluctuations </strong>in the exchange rate. But <strong>excessive and undisclosed interventions are not considered fair.</strong></span></span></li> </ul> ', 'created_date' => object(Cake\I18n\FrozenDate) {}, 'posturl' => 'trump-accuses-china-of-currency-manipulation', 'image' => 'https://www.mediafire.com/convkey/f872/uvi9rhy4c7ss6ln6g.jpg', 'fbimage' => 'https://www.mediafire.com/convkey/f872/uvi9rhy4c7ss6ln6g.jpg', 'metatitle' => 'Trump accuses China of 'currency manipulation', 'metakeyword' => 'Trump accuses China of 'currency manipulation', 'metadescription' => 'the US Treasury Department declared that China is a currency manipulator. The move came after the People’s Bank of China (PBOC)', 'author' => null, 'downlaodpdf' => 'https://www.mediafire.com/file/gklkcp9a8ul9bky/Trump_accuses_China_of_%27currency_manipulation.pdf/file', '[new]' => false, '[accessible]' => [ [maximum depth reached] ], '[dirty]' => [[maximum depth reached]], '[original]' => [[maximum depth reached]], '[virtual]' => [[maximum depth reached]], '[errors]' => [[maximum depth reached]], '[invalid]' => [[maximum depth reached]], '[repository]' => 'currentaffairs' }, (int) 11 => object(Cake\ORM\Entity) { 'tag' => 'World Economy', 'keyword' => 'world-economy', 'id' => (int) 1891, 'title' => 'Artificial Currency weakening by china', 'description' => '<p style="margin-left:0in; margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Issue</span></span></strong></span></span></p> <p style="margin-left:0in; margin-right:0in"> </p> <p style="margin-left:0in; margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:10.0pt"><span style="background-color:whitesmoke"><span style="font-family:"Times New Roman","serif""><span style="color:#282828">The United States has designated China as a “currency manipulator” after Chinese Central bank Yuan weakens past US dollars.</span></span></span></span></span></span></p> <p style="margin-left:0in; margin-right:0in"> </p> <p style="margin-left:0in; margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Background</span></span></strong></span></span></p> <p style="margin-left:0in; margin-right:0in"> </p> <p style="margin-left:0in; margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:10.0pt"><span style="background-color:whitesmoke"><span style="font-family:"Times New Roman","serif""><span style="color:#282828">The present devaluation of the currency has gained significance in light of the ongoing trade war between the U.S. and China. Both countries have slapped high tariffs on goods worth billions imported into their countries from the other side.</span></span></span></span></span></span></p> <p style="margin-left:0in; margin-right:0in"> </p> <p style="margin-left:0in; margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">What is Artificial Currency Fixing?</span></span></strong></span></span></p> <ul> <li><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:10.0pt"><span style="background-color:whitesmoke"><span style="font-family:"Times New Roman","serif""><span style="color:#282828">Devaluing the currency is a common ploy employed by economies that face a slowdown in order to help boost demand for their goods. </span></span></span></span></span></span></li> <li><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:10.0pt"><span style="background-color:whitesmoke"><span style="font-family:"Times New Roman","serif""><span style="color:#282828">A currency is devalued (or weakened) using the central bank to increase the supply of the currency in the forex market. This allows more units of the currency to be purchased using fewer units of various other foreign currencies. </span></span></span></span></span></span></li> <li><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:10.0pt"><span style="background-color:whitesmoke"><span style="font-family:"Times New Roman","serif""><span style="color:#282828">This is a way of transferring more of the purchasing power to buy Chinese goods away from the hands of the local Chinese and into the hands of Americans. The Chinese believe this will help boost the value of China’s exports and also kick-start growth.</span></span></span></span></span></span></li> </ul> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">How does it impact global economy?</span></span></strong></span></span></p> <ul> <li><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:10.0pt"><span style="background-color:whitesmoke"><span style="font-family:"Times New Roman","serif""><span style="color:#282828">Chinese economy has been witnessing a general slowdown, with growth dropping to a 27-year low of 6.2%. China has decided to depend more heavily on exports as a way to boost demand for its goods.</span></span></span></span></span></span></li> <li><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:10.0pt"><span style="background-color:whitesmoke"><span style="font-family:"Times New Roman","serif""><span style="color:#282828">If the U.S. weakens the dollar to retaliate against China’s Yuan devaluation, it will enter a currency war. </span></span></span></span></span></span></li> <li><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:10.0pt"><span style="background-color:whitesmoke"><span style="font-family:"Times New Roman","serif""><span style="color:#282828">This can cause terrible uncertainty for businesses. Combined with high tariffs, this will lead to a steep fall in international trade. </span></span></span></span></span></span></li> <li><span style="font-size:10.0pt"><span style="background-color:whitesmoke"><span style="font-family:"Times New Roman","serif""><span style="color:#282828">Currency devaluation may temporarily boost exports by transferring more purchasing power to the hands of foreign investors, but it will not boost domestic production. Eventually,such competitive devaluations can cause the size of global trade to shrink</span></span></span></span></li> </ul> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:12.0pt"><span style="background-color:whitesmoke"><span style="font-family:"Times New Roman","serif""><span style="color:#282828">Impact on India</span></span></span></span></strong></span></span></p> <ul> <li><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:10.0pt"><span style="background-color:white"><span style="font-family:"Times New Roman","serif""><span style="color:#111111">The </span></span></span></span><span style="font-size:10.0pt"><span style="background-color:white"><span style="font-family:"Times New Roman","serif""><span style="color:#111111">result of China’s decision to let the Yuan fall against the dollar, demand for dollars surged around the globe, including in India, investors buy dollars at the expense of the rupee. The Indian currency can plunge into low against the dollar.</span></span></span></span></span></span></li> </ul> ', 'created_date' => object(Cake\I18n\FrozenDate) {}, 'posturl' => 'artificial-currency-weakening-by-china', 'image' => 'https://www.mediafire.com/convkey/b771/x2u058l6abmu50t6g.jpg', 'fbimage' => 'https://www.mediafire.com/convkey/b771/x2u058l6abmu50t6g.jpg', 'metatitle' => 'Artificial Currency weakening by china', 'metakeyword' => 'Artificial Currency weakening by china', 'metadescription' => 'The United States has designated China as a “currency manipulator†after Chinese Central bank Yuan weakens past US dollars.', 'author' => null, 'downlaodpdf' => 'https://www.mediafire.com/file/170wpp8rav112qr/Artificial_Currency_weakening_by_china.pdf/file', '[new]' => false, '[accessible]' => [ [maximum depth reached] ], '[dirty]' => [[maximum depth reached]], '[original]' => [[maximum depth reached]], '[virtual]' => [[maximum depth reached]], '[errors]' => [[maximum depth reached]], '[invalid]' => [[maximum depth reached]], '[repository]' => 'currentaffairs' }, (int) 12 => object(Cake\ORM\Entity) { 'tag' => 'World Economy', 'keyword' => 'world-economy', 'id' => (int) 1989, 'title' => 'US announces tariff hikes on Chinese goods', 'description' => '<p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Issue</span></span></strong></span></span></p> <p style="margin-right:0in"> </p> <p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="background-color:white"><span style="font-family:"Times New Roman","serif""><span style="color:black">U.S. President Donald Trump on Friday lashed back at a new round of Chinese tariffs by heaping an additional 5% duty on some $550 billion in targeted Chinese goods. This is a part of trade war between world’s two largest economies</span></span></span><span style="background-color:whitesmoke"><span style="font-family:"Times New Roman","serif""><span style="color:#282828">.</span></span></span></span></span></p> <p style="margin-right:0in"> </p> <p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Background</span></span></strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="background-color:white"><span style="font-family:"Times New Roman","serif""><span style="color:black">Mr. Trump has accused China of unfair trade practices and pushed for a deal that would rebalance the relationship in favour of U.S. manufacturers and workers</span></span></span></span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="background-color:white"><span style="font-family:"Times New Roman","serif""><span style="color:black">China unveiled its retaliatory tariffs on $75 billion worth of U.S. goods, prompting the President earlier in the day to demand U.S. companies move their operations out of China.</span></span></span></span></span></p> </li> </ul> <p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Details</span></span></strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="background-color:white"><span style="font-family:"Times New Roman","serif""><span style="color:black">United States has said it would raise its existing tariffs on $250 billion worth of Chinese imports to 30% from the current 25% beginning October 1.</span></span></span></span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="background-color:white"><span style="font-family:"Times New Roman","serif""><span style="color:black">Tariffs on the remaining $300 billion worth of Chinese goods to 15% from 10%. The United States will begin imposing those tariffs on some products starting September, but tariffs on about half of those goods have been delayed</span></span></span><span style="background-color:whitesmoke"><span style="font-family:"Times New Roman","serif""><span style="color:#282828">.</span></span></span></span></span></p> </li> </ul> <p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Effect on India and world</span></span></strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="background-color:white"><span style="font-family:"Times New Roman","serif""><span style="color:black">China will search for other markets where it can dump the products it exported to the US. India will provide a ready-made market for these Chinese products. The trade war will result in an increase in Chinese exports to India.</span></span></span></span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="background-color:white"><span style="font-family:"Times New Roman","serif""><span style="color:black">The trade war will adversely affect global trade and financial markets. IMF has predicted that a full-blown trade war would cause the global economy to slow down by more than 0.8% in 2020. This will lead to shrinking of Indian exports in the coming months, not only to the US and China but also to other countries. </span></span></span></span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="background-color:white"><span style="font-family:"Times New Roman","serif""><span style="color:black">This will negatively affect income and employment generation in export-driven sectors and downstream industries. Given the inelastic nature of Indian imports like dependence on oil, a slowdown in exports will result in a higher trade deficit. </span></span></span></span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="background-color:white"><span style="font-family:"Times New Roman","serif""><span style="color:black">This will lead to a further fall in the Indian rupee’s value, exerting pressure on other macroeconomic indicators and depreciates currency. </span></span></span></span></span><br /> </p> </li> </ul> ', 'created_date' => object(Cake\I18n\FrozenDate) {}, 'posturl' => 'us-announces-tariff-hikes', 'image' => 'https://www.mediafire.com/convkey/0538/g9ocdknj0e5n7566g.jpg', 'fbimage' => 'https://www.mediafire.com/convkey/0538/g9ocdknj0e5n7566g.jpg', 'metatitle' => 'US announces tariff hikes on Chinese goods', 'metakeyword' => 'US announces tariff hikes on Chinese goods', 'metadescription' => 'U.S. President Donald Trump on Friday lashed back at a new round of Chinese tariffs by heaping an additional 5% duty on some $550 billion ', 'author' => null, 'downlaodpdf' => 'https://www.mediafire.com/file/iuydfdai0mas4wc/US_announces_tariff_hikes.pdf/file', '[new]' => false, '[accessible]' => [ [maximum depth reached] ], '[dirty]' => [[maximum depth reached]], '[original]' => [[maximum depth reached]], '[virtual]' => [[maximum depth reached]], '[errors]' => [[maximum depth reached]], '[invalid]' => [[maximum depth reached]], '[repository]' => 'currentaffairs' }, (int) 13 => object(Cake\ORM\Entity) { 'tag' => 'World Economy', 'keyword' => 'world-economy', 'id' => (int) 2019, 'title' => 'Chinese influence on falling rupee', 'description' => '<p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Issue</span></span></strong></span></span></p> <p style="margin-right:0in"> </p> <p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-family:"Times New Roman","serif"">The Indian rupee fell sharply by 40 paise against dollar to hit 72.05. The global recession and trade war between Us and China are said to have influenced this phenomenon. </span></span></span></p> <p style="margin-right:0in"> </p> <p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Background</span></span></strong></span></span></p> <p style="margin-right:0in"> </p> <p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="background-color:white"><span style="font-family:"Times New Roman","serif""><span style="color:black">Normally, the rupee moves in line with the movement of the stock market, as a positive development assures rupee to gain its value in the market.</span></span></span></span></span></p> <p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="background-color:white"><span style="font-family:"Times New Roman","serif""><span style="color:black">The rupee has reeled under global pressure as markets remained concerned over an escalation of the trade tariff war between the United States and China.</span></span></span></span></span></p> <p style="margin-right:0in"> </p> <p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Details</span></span></strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="background-color:white"><span style="font-family:"Times New Roman","serif""><span style="color:black">Recently the Renminbi fell to a new 11-year low of 7.15 against the dollar due to rising concerns over the tariff war. Most emerging market currencies, including the Malaysian Ringgit, the Indonesian Rupiah, and the South African Rand, came under pressure. So did the rupee, which fell sharply.</span></span></span></span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="background-color:white"><span style="font-family:"Times New Roman","serif""><span style="color:black">Trade war fears between US and China and a sharp fall in Chinese Yuan (breaching 7 to a dollar) hit the global market sentiments and decline in currencies of most countries including India.</span></span></span></span></span></p> </li> </ul> <p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:12.0pt"><span style="background-color:white"><span style="font-family:"Times New Roman","serif""><span style="color:black">Link between rupee and Renminbi</span></span></span></span></strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="background-color:white"><span style="font-family:"Times New Roman","serif""><span style="color:black">A weakness in the renminbi (yuan) increases the competitiveness of Chinese exports, as every dollar can import larger quantities of Chinese goods. </span></span></span></span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="background-color:white"><span style="font-family:"Times New Roman","serif""><span style="color:black">At the same time, it puts competing countries under pressure, as their goods become relatively more expensive. As the exports become expensive rupee losses its value and depreciates.</span></span></span></span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="background-color:white"><span style="font-family:"Times New Roman","serif""><span style="color:black">US and overall slowdown in global growth has fuelled the concerns that China may be devaluing its currency to boost its exports and push growth.</span></span></span></span></span></p> </li> </ul> ', 'created_date' => object(Cake\I18n\FrozenDate) {}, 'posturl' => 'chinese-influence-on-falling-rupee', 'image' => 'https://www.mediafire.com/convkey/701c/s5hfciv0nkzfr226g.jpg', 'fbimage' => 'https://www.mediafire.com/convkey/701c/s5hfciv0nkzfr226g.jpg', 'metatitle' => 'Chinese influence on falling rupee', 'metakeyword' => 'Chinese influence on falling rupee', 'metadescription' => 'The Indian rupee fell sharply by 40 paise against dollar to hit 72.05. The global recession and trade war between Us and China are said to have influenced this phenomenon.', 'author' => null, 'downlaodpdf' => 'https://www.mediafire.com/file/17dxuyxlhxozdp7/Chinese_influence_on_falling_rupee.pdf/file', '[new]' => false, '[accessible]' => [ [maximum depth reached] ], '[dirty]' => [[maximum depth reached]], '[original]' => [[maximum depth reached]], '[virtual]' => [[maximum depth reached]], '[errors]' => [[maximum depth reached]], '[invalid]' => [[maximum depth reached]], '[repository]' => 'currentaffairs' }, (int) 14 => object(Cake\ORM\Entity) { 'tag' => 'World Economy', 'keyword' => 'world-economy', 'id' => (int) 2202, 'title' => 'US-China war can reduce global GDP', 'description' => '<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Issue</strong></span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Tariffs imposed or threatened by the United States and China could reduce 0.8% off global economic output in 2020 and trigger more losses in future according to the International Monetary Fund.</span></span></p> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Background</strong></span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The world's two largest economies, USA and China are preparing for new rounds of talks aimed at curbing a more-than-year-long trade war that has hurt global economic growth and rattled financial markets.</span></span><br /> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Details</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The IMF lowered its 2019 global growth forecast from 3.3 per cent to 3.2 per cent, citing international tensions and the US-China trade war in particular.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">World economic activity remained subdued, with trade and geopolitical tensions causing uncertainty and eroding business confidence, investment and trade.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Implications</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The result is a large pullback in investment and along with that , price increases and ruffled consumers. This causes U.S. and global GDP to contract sharply.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The U.S. dollar appreciates as capital flight intensifies and emerging market currencies depreciate sharply. Investments in US may take a hit, which may lead to depreciation of US dollars.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Moody's forecasts that non-farm employment would be 793,900 lower by the end of 2021.</span></span></p> </li> </ul> ', 'created_date' => object(Cake\I18n\FrozenDate) {}, 'posturl' => 'us-china-war-can-reduce-global-gdp', 'image' => 'https://www.mediafire.com/convkey/16c5/lhtkkfgpuu9zwy06g.jpg', 'fbimage' => 'https://www.mediafire.com/convkey/16c5/lhtkkfgpuu9zwy06g.jpg', 'metatitle' => 'US-China war can reduce global GDP', 'metakeyword' => 'Tariffs imposed or threatened by the United States', 'metadescription' => 'Tariffs imposed or threatened by the United States and China could reduce 0.8% off global economic output in 2020 and trigger more losses in future according ', 'author' => null, 'downlaodpdf' => 'https://www.mediafire.com/file/m9voaubxtiqbbek/US-China_war_can_reduce_global_GDP.pdf/file', '[new]' => false, '[accessible]' => [ [maximum depth reached] ], '[dirty]' => [[maximum depth reached]], '[original]' => [[maximum depth reached]], '[virtual]' => [[maximum depth reached]], '[errors]' => [[maximum depth reached]], '[invalid]' => [[maximum depth reached]], '[repository]' => 'currentaffairs' }, (int) 15 => object(Cake\ORM\Entity) { 'tag' => 'World Economy', 'keyword' => 'world-economy', 'id' => (int) 4307, 'title' => 'Crude oil prices fall below $0 mark', 'description' => '<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Issue</strong></span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">US oil markets created history when prices of West Texas Intermediate (WTI), the best quality of crude oil in the world, fell to “minus” $40.32 a barrel in New York. </span></span></p> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Background</strong></span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Not only is this the lowest crude oil price ever known, the previous lowest was immediately after World War II — but also well below the zero-mark.</span></span></p> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Details</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The first thing to understand is that, even before the Covid-19 induced global lockdown, crude oil prices had been falling over the past few months. They were closer to $60 a barrel at the start of 2020 and by March-end, they were closer to $20 a barrel.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The reason was straightforward. The price of a commodity falls when supply is more than demand. To a great extent, oil markets, globally and more so in the US, are facing an enormous glut.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Historically, the Organization of the Petroleum Exporting Countries (OPEC), lead by Saudi Arabia, which is the largest exporter of crude oil in the world (single-handedly exporting 10% of the global demand), used to work as a cartel and fix prices in a favourable band. It could bring down prices by increasing oil production and raise prices by cutting production.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">As Saudi Arabia and Russia disagreed over the production cuts required to keep prices stable. As a result, oil-exporting countries, led by Saudi Arabia, started undercutting each other on price while continuing to produce the same quantities of oil.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">According to reports, all possible the mismatch resulted in almost all storage capacity being exhausted. Trains and ships, which were typically used to transport oil, too, were used up just for storing oil.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">This desperation from both sides, buyers and sellers, to get rid of oil meant the oil prices not only plummeted to zero but also went deep into the negative territory.</span></span></p> </li> <li> <p><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">In the short-term, for both, the holders of the delivery contract and the oil producers, it was less costly to pay $40 a barrel and get rid of the oil instead of storing it (buyers) or stopping production (producers).</span></span></p> </li> </ul> ', 'created_date' => object(Cake\I18n\FrozenDate) {}, 'posturl' => 'crude-oil-prices-fall-below-dollar-0-mark', 'image' => 'https://www.mediafire.com/convkey/c0fa/qj8j0ezbkj4c8xj6g.jpg', 'fbimage' => 'https://www.mediafire.com/convkey/c0fa/qj8j0ezbkj4c8xj6g.jpg', 'metatitle' => 'Crude oil prices fall below $0 mark', 'metakeyword' => 'Crude oil prices fall below $0 mark', 'metadescription' => 'US oil markets created history when prices of West Texas Intermediate (WTI), the best quality of crude oil in the world, fell to “minus” $40.32 a barrel in New York.', 'author' => null, 'downlaodpdf' => 'http://www.mediafire.com/file/c7xn3nvv656vl93/5.Crude_oil_prices_fall_below_%25240_mark.pdf/file', '[new]' => false, '[accessible]' => [ [maximum depth reached] ], '[dirty]' => [[maximum depth reached]], '[original]' => [[maximum depth reached]], '[virtual]' => [[maximum depth reached]], '[errors]' => [[maximum depth reached]], '[invalid]' => [[maximum depth reached]], '[repository]' => 'currentaffairs' }, (int) 16 => object(Cake\ORM\Entity) { 'tag' => 'World Economy', 'keyword' => 'world-economy', 'id' => (int) 4337, 'title' => 'Effect of oil prices on sugar', 'description' => '<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Issue</strong></span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">It is not only oil that has tumbled, with prices of West Texas Intermediate grade crude closing at an unprecedented minus $37.63 per barrel on April 20. On April 21, prices of raw sugar for May delivery at New York crashed to 9.75 cents per pound, the lowest closing for a nearest-month futures contract.</span></span></p> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Details</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">All commodities have taken a demand hit from subdued economic activity and lockdowns imposed by many countries to combat the COVID-19 pandemic. But sugar is one commodity that, until quite recently, was on a bull run. </span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Most estimates showed global production in 2019-20 (October-September) to fall short of consumption by 8-9 million tonnes (mt). On February 12, the front-month raw sugar futures contract at New York actually closed 15.78 cents per pound, the highest since May 2017. A drop from that to below 10 cents is rather steep.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">One reason for this collapse is the closure of restaurants, weddings and other social functions not taking place, and people avoiding ice-creams and sweetened cold beverages that might cause throat infections. </span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The consumption in India alone is expected to dip by 1.5-2 mt in 2019-20, from the normal 25.5-26 mt levels, which also is a direct effect of the lockdown.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Sinking crude prices appear an even bigger factor. The juice from crushing sugarcane can be crystallised into sugar or fermented into alcohol. When oil prices are high, mills, especially in Brazil, tend to divert cane for making ethanol (alcohol of 99%-plus purity) that is used for blending with petrol.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">In 2019-20 (April-March), only 34.32% of cane crushed by Brazilian mills went for manufacturing 26.73 mt of sugar. The rest was used to produce 31.62 billion litres of ethanol. But with oil prices tanking, mills will not find it attractive to divert cane for ethanol. </span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Dip in sugar consumption, together with higher Brazilian output, is bad news for both Indian sugar mills and cane farmers. Before COVID-19 happened, the Indian industry was expecting to export 5.5-6 mt of raw sugar in 2019-20.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The current plunge in world prices, plus Brazil’s likely production surge, would upset calculations but the bright spot is that Indonesia has a large demand for imported sugar. It has also slashed duty from 15% to 5% on Indian raw sugar.</span></span></p> </li> <li> <p><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">Moreover, the industry’s problem is not from sugar alone. The lockdown has reduced off-take of alcohol, be it potable liquor or ethanol for blending with petrol. But with cars and two-wheelers not running, oil market companies aren’t very keen to procure ethanol.</span></span></p> </li> </ul> ', 'created_date' => object(Cake\I18n\FrozenDate) {}, 'posturl' => 'effect-of-oil-prices-on-sugar', 'image' => 'https://www.mediafire.com/convkey/4b1a/56r8xpj8hm3isls6g.jpg', 'fbimage' => 'https://www.mediafire.com/convkey/4b1a/56r8xpj8hm3isls6g.jpg', 'metatitle' => 'Effect of oil prices on sugar', 'metakeyword' => 'Effect of oil prices on sugar', 'metadescription' => 'It is not only oil that has tumbled, with prices of West Texas Intermediate grade crude closing at an unprecedented minus $37.63 per barrel on April 20. On April 21', 'author' => null, 'downlaodpdf' => 'http://www.mediafire.com/file/fb3qxmpc8h82mo8/5.Effect_of_oil_prices_on_sugar.pdf/file', '[new]' => false, '[accessible]' => [ [maximum depth reached] ], '[dirty]' => [[maximum depth reached]], '[original]' => [[maximum depth reached]], '[virtual]' => [[maximum depth reached]], '[errors]' => [[maximum depth reached]], '[invalid]' => [[maximum depth reached]], '[repository]' => 'currentaffairs' }, (int) 17 => object(Cake\ORM\Entity) { 'tag' => 'World Economy', 'keyword' => 'world-economy', 'id' => (int) 4553, 'title' => 'Effect of COVID-19 on global economy', 'description' => '<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Issue</strong></span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Amid the coronavirus pandemic, several countries across the world resorted to lockdowns to “flatten the curve” of the infection. These lockdowns meant confining millions of citizens to their homes, shutting down businesses and ceasing almost all economic activity.</span></span></p> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Background</strong></span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">According to the International Monetary Fund (IMF), the global economy is expected to shrink by over 3 per cent in 2020 – the steepest slowdown since the Great Depression of the 1930s.</span></span></p> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Details</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The pandemic has pushed the global economy into a recession, which means the economy starts shrinking and growth stops.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">In the US, Covid-19-related disruptions have led to millions filing for unemployment benefits. Since March 21, more than 36 million have filed for unemployment benefits, which is almost a quarter of the working-age population.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Further, an early analysis by IMF reveals that the manufacturing output in many countries has gone done, which reflects a fall in external demand and growing expectations of a fall in domestic demand.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The IMF’s estimate of the global economy growing at -3 percent in 2020 is an outcome “far worse” than the 2009 global financial crises. Economies such as the US, Japan, the UK, Germany, France, Italy and Spain are expected to contract this year.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Advanced economies have been hit harder, and together they are expected to grow by -6 percent in 2020. Emerging markets and developing economies are expected to contract by -1 percent. If China is excluded from this pool of countries, the growth rate for 2020 is expected to be -2.2 percent.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">China’s GDP dropped by 36.6 percent in the first quarter of 2020, while South Korea’s output fell by 5.5 percent, since the country didn’t impose a lockdown but followed a strategy of aggressive testing, contact tracing and quarantining.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Due to the fall in travel, global industrial activity has been affected. Oil prices fell further in March as the transportation section, which accounts for 60 percent of the oil demand, was hit due to several countries imposing lockdowns.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">IMF projects a decrease in food prices by 2.6 percent in 2020, caused by supply chain disruptions, border delays, food security concerns in regions affected by Covid-19 and export restrictions.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Many advanced economies in the world have rolled out support packages. While India’s economic stimulus package is 10 percent of its GDP, Japan’s is 21.1 percent, followed by the US (13 percent), Sweden (12 percent), Germany (10.7 percent), France (9.3 percent), Spain (7.3 percent) and Italy (5.7 percent).</span></span></p> </li> <li> <p><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">Even as economic activity resumes gradually, the situation will take time to normalise, as consumer behaviours change as a result of continued social distancing and uncertainty about how the pandemic will evolve.</span></span></p> </li> </ul> ', 'created_date' => object(Cake\I18n\FrozenDate) {}, 'posturl' => 'effect-of-covid-19-on-global-economy', 'image' => 'https://www.mediafire.com/convkey/6d98/7bk3fxfow03oe366g.jpg', 'fbimage' => 'https://www.mediafire.com/convkey/6d98/7bk3fxfow03oe366g.jpg', 'metatitle' => 'Effect of COVID-19 on global economy', 'metakeyword' => 'Effect of COVID-19 on global economy', 'metadescription' => 'Amid the coronavirus pandemic, several countries across the world resorted to lockdowns to “flatten the curve” of the infection. These lockdowns meant confining millions', 'author' => null, 'downlaodpdf' => 'http://www.mediafire.com/file/ydtneg8c3gw35ii/Effect_of_COVID-19.pdf/file', '[new]' => false, '[accessible]' => [ [maximum depth reached] ], '[dirty]' => [[maximum depth reached]], '[original]' => [[maximum depth reached]], '[virtual]' => [[maximum depth reached]], '[errors]' => [[maximum depth reached]], '[invalid]' => [[maximum depth reached]], '[repository]' => 'currentaffairs' }, (int) 18 => object(Cake\ORM\Entity) { 'tag' => 'World Economy', 'keyword' => 'world-economy', 'id' => (int) 5624, 'title' => 'Forex reserves at all time high', 'description' => '<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Issue</strong></span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">India’s foreign exchange (forex) reserves surged by $3.883 billion to touch a lifetime high of $541.431 billion in the week ended August 28.</span></span></p> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Background</strong></span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"> India’s forex reserves had crossed $500 billion for the first time ever in the week ended June 5, 2020, hitting what was then the all-time high of $501.7 billion.</span></span></p> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Details</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The current situation stands in stark contrast to the one in 1991, when India had to pledge its gold reserves to stave off a major financial crisis. </span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">In March 1991, India had forex reserves of a mere $5.8 billion. The country can depend on its soaring foreign exchange reserves to tackle any crisis on the economic front.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The major reason for the rise in forex reserves is the rise in investment in foreign portfolio investors in Indian stocks and foreign direct investments (FDIs).</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The fall in crude oil prices has brought down the oil import bill, saving precious foreign exchange. Similarly, overseas remittances and foreign travels have fallen steeply.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The rising forex reserves give comfort to the government and the RBI in managing India’s external and internal financial issues at a time of major contraction in economic growth. </span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">It serves as a cushion in the event of a crisis on the economic front, and is enough to cover the import bill of the country for a year.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The RBI uses its forex kitty for the orderly movement of the rupee. It sells the dollar when the rupee weakens and buys the dollar when the rupee strengthens. </span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">When the RBI mops up dollars, it releases an equal amount in rupees. This excess liquidity is sterilised through the issue of bonds and securities and LAF operations.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Forex reserves</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Forex reserves are external assets in the form of gold, SDRs (special drawing rights of the IMF), and foreign currency assets (capital inflows to the capital markets, FDI, and external commercial borrowings) accumulated by India and controlled by the RBI.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Official foreign exchange reserves are held in support of a range of objectives like supporting and maintaining confidence in the policies for monetary and exchange rate management including the capacity to intervene in support of the national or union currency.</span></span></p> </li> <li> <p><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">It also limits external vulnerability by maintaining foreign currency liquidity to absorb shocks during times of crisis or when access to borrowing is curtailed.</span></span></p> </li> </ul> ', 'created_date' => object(Cake\I18n\FrozenDate) {}, 'posturl' => 'forex-reserves-at-all-time-high', 'image' => '', 'fbimage' => '', 'metatitle' => 'Forex reserves at all time high', 'metakeyword' => 'Forex reserves at all time high', 'metadescription' => ' India’s forex reserves had crossed $500 billion for the first time ever in the week ended June 5, 2020, hitting what was then the all-time high of $501.7 billion.', 'author' => null, 'downlaodpdf' => '', '[new]' => false, '[accessible]' => [ [maximum depth reached] ], '[dirty]' => [[maximum depth reached]], '[original]' => [[maximum depth reached]], '[virtual]' => [[maximum depth reached]], '[errors]' => [[maximum depth reached]], '[invalid]' => [[maximum depth reached]], '[repository]' => 'currentaffairs' }, (int) 19 => object(Cake\ORM\Entity) { 'tag' => 'World Economy', 'keyword' => 'world-economy', 'id' => (int) 5292, 'title' => 'US GDP slide', 'description' => '<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Issue</strong></span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The United States contracted by 33 percent in the second quarter, or a near 10 percent quarter-over-quarter decline— making it the sharpest GDP decline in the history of the world’s largest economy.</span></span></p> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Background</strong></span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">This is in sharp contrast to GDP data released by China, where growth in the world’s second-largest economy has swung back sharply in the April-June quarter.</span></span></p> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Details</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">GDP growth trends of the US and China show that the government’s effectiveness in getting an economy back on track is dependent on its success in controlling the spread of the virus. The recovery in economic activity also depends on the quality of policy support.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Economists decoding the slide in the US GDP numbers point to a significant fall in consumption, the biggest component of American GDP that accounts for almost 70 percent of the economy. </span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Spending on goods and services is estimated to have fallen at a seasonally adjusted annualised rate of 35 percent in the second quarter.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Investments in buildings, equipment, and intellectual property also fell at an annual rate of 49 percent while exports plunged 64 percent. </span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The worrying news for the US is that the scale of this fall in the first quarter will be dwarfed by that in the second.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">After many states lifted their lockdown orders in April and May, COVID-19 cases began a sharp climb in June, with the result that rebounding economic activity sputtered.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Both the US and China are driven by consumption with over two-thirds of US GDP and more than one-half that of China depends on it.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Other than the quarterly lag in the transmission dynamics, the big differentiator is with respect to the services sector and consumption trends. </span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">While both economies rely on the service sector for a range of value-additions and output that contribute to their respective GDP, continuing restrictions have significantly hampered the return of such jobs in the US, especially in the catering, travel, and hospitality industries that account for a bulk of the urban jobs. </span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Such restrictions in the US have been geographically more widespread and longer-term, given the initial delay in responding to the spread of the disease, and fickle state government policies.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">India’s recovery plan is different from both the US and China. In India, the measures have been liquidity driven, with little burden on the Central exchequer. </span></span></p> </li> <li> <p><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">It has been primarily focused on pushing banks to extend credit on the back of government guarantees to sectors that include small businesses, non-banking financial companies, microfinance institutions, and housing finance companies. A consumption boost in India’s recovery is practically ruled out.</span></span></p> </li> </ul> ', 'created_date' => object(Cake\I18n\FrozenDate) {}, 'posturl' => 'us-gdp-slide', 'image' => 'https://www.mediafire.com/convkey/0f21/k8vacn886015hkt6g.jpg', 'fbimage' => 'https://www.mediafire.com/convkey/0f21/k8vacn886015hkt6g.jpg', 'metatitle' => 'US GDP slide', 'metakeyword' => 'US GDP slide', 'metadescription' => 'The United States contracted by 33 percent in the second quarter, or a near 10 percent quarter-over-quarter decline— making it the sharpest GDP decline in the', 'author' => null, 'downlaodpdf' => 'http://www.mediafire.com/file/cjbcinrstmpxdyy/2.US+GDP+slide.pdf/file', '[new]' => false, '[accessible]' => [ [maximum depth reached] ], '[dirty]' => [[maximum depth reached]], '[original]' => [[maximum depth reached]], '[virtual]' => [[maximum depth reached]], '[errors]' => [[maximum depth reached]], '[invalid]' => [[maximum depth reached]], '[repository]' => 'currentaffairs' }, (int) 20 => object(Cake\ORM\Entity) { 'tag' => 'World Economy', 'keyword' => 'world-economy', 'id' => (int) 6698, 'title' => 'Challenges for policymakers in 2021', 'description' => '<p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Issue</strong></span></span></p> <p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Over the past few weeks, India seems to have broken the link between rising levels of mobility and COVID-19 cases. The number of new cases has fallen while the fatality rate continues to drop. </span></span></p> <p style="margin-right:0in"> </p> <p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Background</strong></span></span></p> <p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">As India looks to emerge from the pandemic, it remains to be seen how the government will handle other emerging challenges.</span></span></p> <p style="margin-right:0in"> </p> <p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Details</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The last quarter saw an improvement in growth<strong> </strong>as consumers were eager to spend, especially on festival-related items, bolstered by higher-than-usual financial savings.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">While much of the fiscal support packages around the world have been directed towards safeguarding the vulnerable like poorer households and small businesses, there were some such as the urban poor being left out.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">In order to handle effects of the pandemic, the government has been on spending spree. It has infused liquidity into the market to generate demand.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Inflation control could be the main task facing policymakers in 2021. The RBI may have to take steps to gradually drain the excess liquidity in the banking sector, provide a floor for short-term rates and finally narrow the policy rate corridor by raising the reverse repo rate.</span></span></p> </li> </ul> <p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Tackling inflation</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Inflation occurs when an economy grows due to increased spending. When this happens, prices rise and the purchasing power of the currency within the economy is worth less than it was before.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">One popular method of controlling inflation is through a contractionary monetary policy. The goal of a contractionary policy is to reduce the money supply within an economy by decreasing bond prices and increasing interest rates. </span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The second tool is to increase reserve requirements on the amount of money banks are legally required to keep on hand to cover withdrawals.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">? The more money banks are required to hold back, the less they have to lend to consumers. If they have less to lend, consumers will borrow less, which will decrease spending.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The third method is to directly or indirectly reduce the money supply by enacting policies that encourage the reduction of the money supply. </span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">This includes calling in debts that are owed to the government and increasing the interest paid on bonds so that more investors will buy them.?</span></span></p> </li> </ul> ', 'created_date' => object(Cake\I18n\FrozenDate) {}, 'posturl' => 'challenges-for-policymaker-2021', 'image' => 'https://www.mediafire.com/convkey/d865/yum1kkmeddi7erw6g.jpg', 'fbimage' => 'https://www.mediafire.com/convkey/d865/yum1kkmeddi7erw6g.jpg', 'metatitle' => 'Challenges for policymakers in 2021', 'metakeyword' => 'Challenges for policymakers in 2021', 'metadescription' => 'Over the past few weeks, India seems to have broken the link between rising levels of mobility and COVID-19 cases. The number of new cases has fallen while the fatality rate continues to drop.', 'author' => null, 'downlaodpdf' => 'https://www.mediafire.com/file/7cdphktji9ca5qg/2.Challenges+for+policymakers+in+2021.pdf/file', '[new]' => false, '[accessible]' => [ [maximum depth reached] ], '[dirty]' => [[maximum depth reached]], '[original]' => [[maximum depth reached]], '[virtual]' => [[maximum depth reached]], '[errors]' => [[maximum depth reached]], '[invalid]' => [[maximum depth reached]], '[repository]' => 'currentaffairs' }, (int) 21 => object(Cake\ORM\Entity) { 'tag' => 'World Economy', 'keyword' => 'world-economy', 'id' => (int) 6816, 'title' => 'Increasing spending on social sector', 'description' => '<p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Issue</strong></span></span></p> <p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Experts have argued for the need to ramp up Budget allocations for education and health sectors in India.</span></span></p> <p style="margin-right:0in"> </p> <p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Details</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">A look at the social sector expenditure over the last few years shows that the share of education as a percentage of GDP has been stagnant around 2.8-3 per cent during 2014-15 to 2019-20. </span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">In the case of health, the expenditure as a percentage of GDP increased from 1.2 per cent to 1.5 per cent. This is lower than the required 2-3 per cent of GDP. </span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">There seems to be an increase in expenditure on other services like sports, art and culture, family welfare, water supply and sanitation, labour and labour welfare etc.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">India’s progress in the social sector has been much slower compared to its GDP growth. The two primary factors that adversely affect India’s human development are low levels of health attainments and education.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">India’s social sector in general, and health and education in particular, encounter significant regional, social and gender disparities, slow growth in public expenditures and problems in delivery systems.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">An increase in health expenditure is important to take care of the present and future pandemics. It is essential to have a huge increase in public expenditure on health and provide accessible, affordable and quality health coverage to all.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Another important issue in the social sector is that of undernutrition. There is a need to raise allocations for ICDS and other nutrition programmes.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Quality education is key for raising human development. The pandemic has enhanced inequalities in education and has revealed the widening digital gap.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Equality of opportunity in terms of quality education is the key to raising human development and for reducing inequalities in the labour market. </span></span></p> </li> </ul> <p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Social sectors</strong></span></span></p> <p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Social sector includes several important component such as education, health and medical care, water supply and sanitation, poverty alleviation, housing conditions etc. that play a vital contribution in human development.</span></span></p> ', 'created_date' => object(Cake\I18n\FrozenDate) {}, 'posturl' => 'increasing-spending-on-social-sector', 'image' => 'https://www.mediafire.com/convkey/56aa/k7ft8wxj3y3tbox6g.jpg', 'fbimage' => 'https://www.mediafire.com/convkey/56aa/k7ft8wxj3y3tbox6g.jpg', 'metatitle' => 'Increasing spending on social sector', 'metakeyword' => 'Increasing spending on social sector', 'metadescription' => 'Experts have argued for the need to ramp up Budget allocations for education and health sectors in India.', 'author' => null, 'downlaodpdf' => 'https://www.mediafire.com/file/yzuqknmxyv5ska9/5.Increasing+spending+on+social+sector.pdf/file', '[new]' => false, '[accessible]' => [ [maximum depth reached] ], '[dirty]' => [[maximum depth reached]], '[original]' => [[maximum depth reached]], '[virtual]' => [[maximum depth reached]], '[errors]' => [[maximum depth reached]], '[invalid]' => [[maximum depth reached]], '[repository]' => 'currentaffairs' }, (int) 22 => object(Cake\ORM\Entity) { 'tag' => 'World Economy', 'keyword' => 'world-economy', 'id' => (int) 6939, 'title' => 'Great Reset', 'description' => '<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Issue</strong></span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The World Economic Forum has been seeking to reform global capitalism in order to restore order after the devastating pandemic.</span></span></p> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Details</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The Great Reset is an initiative by the World Economic Forum. It has been conceptualised by the founder and executive chairman of the WEF, Klaus Schwab, and has evolved over the last few years.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">It is based on the assessment that the world economy is in deep trouble. Schwab has argued that the situation has been made a lot worse by many factors, including the pandemic’s devastating effects on global society, the un- folding technological revolution, and the consequences of climate change.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Schwab demands that the world must act jointly and swiftly to revamp all aspects of our societies and economies, from education to social contracts and working conditions.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Every country, from the United States to China, must participate, and every industry, from oil and gas to tech, must be transformed. In short, we need a ‘Great Reset’ of capitalism.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Agenda of great reset</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">First is the question of reforming capitalism. Introduction of “stakeholder capitalism” that looks beyond the traditional corporate focus on maximising profit for shareholders.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Second is certainly right to focus on the deepening climate crisis, through policies such as Paris Climate Summit.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Third is the growing difficulty of global cooperation that has to be promoted. The contestation is not just political but increasingly economic and technological.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Issues with great reset</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The right sees the WEF arguments about restructuring the global economy as a dangerous attempt to impose ‘socialism’ and dismantle the traditional society.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The left points to the complicity of the Davos forum in promoting policies that have brought the world to the current impasse and question its capacity to produce solutions.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>World Economic Forum</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The World Economic Forum (WEF) is an international NGO, founded on 24 January 1971. The WEF's mission is stated as "committed to improving the state of the world by engaging business, political, academic, and other leaders of society to shape global, regional, and industry agendas”.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The WEF hosts an annual meeting at the end of January in Davos, a mountain resort in Graubünden, in the eastern Alps region of Switzerland. </span></span></p> </li> <li> <p><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">The meeting brings together some 3,000 business leaders, international political leaders, economists, celebrities, and journalists for up to five days to discuss global issues, across 500 sessions.</span></span></p> </li> </ul> ', 'created_date' => object(Cake\I18n\FrozenDate) {}, 'posturl' => 'great-reset', 'image' => 'https://www.mediafire.com/convkey/5651/30mc0266qg3yy9q6g.jpg', 'fbimage' => 'https://www.mediafire.com/convkey/5651/30mc0266qg3yy9q6g.jpg', 'metatitle' => 'Great Reset | World Economic Forum', 'metakeyword' => 'Great Reset | Agenda of great reset | Issues with great reset | World Economic Forum', 'metadescription' => 'The Great Reset is an initiative by the World Economic Forum. It has been conceptualised by the founder and executive chairman of the WEF, Klaus Schwab,', 'author' => null, 'downlaodpdf' => 'https://www.mediafire.com/file/q89iltslsbra30v/2._Great_Reset.pdf/file', '[new]' => false, '[accessible]' => [ [maximum depth reached] ], '[dirty]' => [[maximum depth reached]], '[original]' => [[maximum depth reached]], '[virtual]' => [[maximum depth reached]], '[errors]' => [[maximum depth reached]], '[invalid]' => [[maximum depth reached]], '[repository]' => 'currentaffairs' }, (int) 23 => object(Cake\ORM\Entity) { 'tag' => 'World Economy', 'keyword' => 'world-economy', 'id' => (int) 6867, 'title' => 'Amazon expanding its air fleet', 'description' => '<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Issue</strong></span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">E-commerce giant Amazon has purchased its first fleet of planes in a bid to expand its air cargo operations and delivery network.</span></span></p> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Background</strong></span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">While the company launched its air operations in 2016, all of its planes were leased at the time. It has invested heavily to bring in new fleet of planes.</span></span></p> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Details</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Amazon had announced that it had bought four planes from WestJet Airlines and seven from Delta Air Lines.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The planes are in the process of being converted to hold cargo instead of passengers. While the four WestJet flights will join the company’s fleet this year, the seven from Delta are expected to enter its air cargo network in 2022.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Significance</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The e-commerce platform’s bid to expand its air network points at its wider plans to shift its deliveries in-house and become a major player in the transportation sector.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">It could lead to lower overall lifetime costs, greater control over the speed, reliability, and quality of service. It could cement its place as a genuine player in the competitive world of air freight.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">As its air fleet continues to grow, some experts warn that the company could pose a significant threat to its delivery partners.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Reasons for buying</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Amazon purchased the planes at a time when the airline industry is struggling to stay afloat as aircraft costs plummet and ticket sales are on the decline due to travel restrictions induced by the Covid-19 pandemic.</span></span></p> </li> <li> <p><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">Amazon has been building up its own delivery operation, both in the air and on ground, in an effort to speed up its delivery of packages, particularly in the case of its Prime service.</span></span></p> </li> </ul> ', 'created_date' => object(Cake\I18n\FrozenDate) {}, 'posturl' => 'amazon-expanding-its-air-fleet', 'image' => 'https://www.mediafire.com/convkey/a524/bswtmbp9t42sc486g.jpg', 'fbimage' => 'https://www.mediafire.com/convkey/a524/bswtmbp9t42sc486g.jpg', 'metatitle' => 'Amazon expanding its air fleet', 'metakeyword' => 'Amazon expanding its air fleet', 'metadescription' => 'While the company launched its air operations in 2016, all of its planes were leased at the time. It has invested heavily to bring in new fleet of planes.', 'author' => null, 'downlaodpdf' => 'https://www.mediafire.com/file/wv1ghbo9oe2sez8/2._Amazon_expanding_its_air_fleet.pdf/file', '[new]' => false, '[accessible]' => [ [maximum depth reached] ], '[dirty]' => [[maximum depth reached]], '[original]' => [[maximum depth reached]], '[virtual]' => [[maximum depth reached]], '[errors]' => [[maximum depth reached]], '[invalid]' => [[maximum depth reached]], '[repository]' => 'currentaffairs' }, (int) 24 => object(Cake\ORM\Entity) { 'tag' => 'World Economy', 'keyword' => 'world-economy', 'id' => (int) 7059, 'title' => 'Crude oil price increase', 'description' => '<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Issue</strong></span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The price of Brent crude crossed the $60 per barrel mark after over a year on the back of oil-producing countries maintaining production cuts.</span></span></p> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Details</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The price of Brent Crude has risen by over 50 per cent since the end of October after prices had remained around $40 per barrel for five months.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Major oil-producing countries had cut oil production last year amid a sharp fall in demand due to the Covid-19 pandemic. </span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Major oil-producing countries such as Saud Arabia have been cutting its own oil production by 1 million barrels per day to strengthen crude oil prices.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Expectations of strong improvements in demand with the global rollout of the Covid-19 vaccine have also put upward pressure on crude oil prices.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Impact on India</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The rise in the price of Brent crude will lead to an increase in India’s import bill. India imports of 80 per cent of its crude oil requirements and the average price of Indian basket of crude oil has already risen to $54.8 barrel for January.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The upward move in crude prices will also put upward pressure on petrol and diesel prices across the country which is already at all-time highs.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The government had hiked central taxes on petrol and diesel by Rs 13 per litre and Rs 11 per litre in 2020 to boost revenues amid lower economic activity. </span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The increase in taxes had prevented consumers from getting the benefit of low fuel prices as international prices crashed during the first quarter of this fiscal and is now contributing to record high prices as international prices have recovered.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Brent crude</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The Brent Crude oil marker is also known as Brent Blend, London Brent and Brent petroleum. This grade is described as light because of its relatively low density, and sweet because of its low sulphur content.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Brent is the leading global price benchmark for Atlantic basin crude oils. It is used to set the price of two-thirds of the world's internationally traded crude oil supplies. </span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">It is one of the two main benchmark prices for purchases of oil worldwide, the other being West Texas Intermediate (WTI).</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>West Texas Intermediate </strong></span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">West Texas Intermediate (WTI) is a light, sweet crude oil that serves as one of the main global oil benchmarks. It is sourced primarily from inland Texas and is one of the highest quality oils in the world.</span></span></p> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Dubai crude</strong></span></span></p> <p><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">Dubai Crude, also known as Fateh, is a heavy sour crude oil extracted from Dubai. For many years, most of the oil producers in the Middle East have taken the monthly spot price average of Dubai and Oman as the benchmark for sales to the Far East.</span></span></p> ', 'created_date' => object(Cake\I18n\FrozenDate) {}, 'posturl' => 'crude-oil-price-increase', 'image' => 'http://www.mediafire.com/convkey/e1ab/5si7m314a2up7ko6g.jpg', 'fbimage' => 'http://www.mediafire.com/convkey/e1ab/5si7m314a2up7ko6g.jpg', 'metatitle' => 'Crude oil price increase', 'metakeyword' => 'Crude oil price increase | The significance of crude crossing $60 a barrel | Crude oil prices steady amid increase in coronavirus cases', 'metadescription' => 'The price of Brent crude crossed the $60 per barrel mark after over a year on the back of oil-producing countries maintaining production cuts.', 'author' => null, 'downlaodpdf' => 'http://www.mediafire.com/file/3zmxntorto0553k/2._Crude_oil_price_increase.pdf/file', '[new]' => false, '[accessible]' => [ [maximum depth reached] ], '[dirty]' => [[maximum depth reached]], '[original]' => [[maximum depth reached]], '[virtual]' => [[maximum depth reached]], '[errors]' => [[maximum depth reached]], '[invalid]' => [[maximum depth reached]], '[repository]' => 'currentaffairs' }, (int) 25 => object(Cake\ORM\Entity) { 'tag' => 'World Economy', 'keyword' => 'world-economy', 'id' => (int) 7184, 'title' => 'India-China trade', 'description' => '<p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Issue</strong></span></span></p> <p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"> China reclaimed its position at the top of the list of India’s major trade partners, even as relations with Beijing plunged to new lows.</span></span></p> <p style="margin-right:0in"> </p> <p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Details</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Trade between India and China from January to December 2020 stood at $77.67 billion. This figure was still higher than the $75.95 billion traded between India and the US last year.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">While India has been trying to reduce its trade imbalance and dependence on Chinese imports for several years now, it was only in 2018 that the US surpassed the value of goods that China traded with India in a financial year. </span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">China got back to the top of the trade partners’ list in a year in which armies of the two countries remained locked in a tense standoff in eastern Ladakh. </span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">In 2020, India committed itself to self-reliance through the Atma Nirbhar Bharat campaign, and implemented measures to restrict Chinese investments in the country.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Dozens of China-linked apps were banned, a major infrastructure contract awarded to a Chinese firm was cancelled, and the import of certain kinds of power equipment was banned. </span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Production-linked incentive (PLI) schemes were announced across sectors to reduce dependence on critical goods from China, even though building self-reliance in these critical sectors will likely take several years.</span></span></p> </li> </ul> <p style="margin-right:0in"><span style="font-size:12pt"><span style="font-family:"Times New Roman",serif"><strong><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">Exports and imports</span></span></strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Electrical machinery and equipment, nuclear reactors, boilers, machinery, and mechanical appliances continued to top the list of goods imported from China in 2020.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Exports of Indian iron and steel to China jumped over 2019, with shipments touching $2.38 billion during January to December 2020. </span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Iron and steel exports to China in 2019 were around $567 million. Export of ores, slag, and ash increased by 62 per cent to $3.48 billion in 2020 from $2.15 billion in 2019.</span></span></p> </li> <li> <p><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">The increased exports, including those of iron and steel, could be the result of China’s focus on domestic infrastructure projects.</span></span></p> </li> </ul> ', 'created_date' => object(Cake\I18n\FrozenDate) {}, 'posturl' => 'india-china-trade', 'image' => '', 'fbimage' => '', 'metatitle' => 'In a tense year India-China trade', 'metakeyword' => 'India-China trade | In a tense year, India-China trade stayed robust | China returns as top India trade partner even as relations sour', 'metadescription' => 'Trade between India and China from January to December 2020 stood at $77.67 billion. This figure was still higher than the $75.95 billion traded between India', 'author' => null, 'downlaodpdf' => '', '[new]' => false, '[accessible]' => [ [maximum depth reached] ], '[dirty]' => [[maximum depth reached]], '[original]' => [[maximum depth reached]], '[virtual]' => [[maximum depth reached]], '[errors]' => [[maximum depth reached]], '[invalid]' => [[maximum depth reached]], '[repository]' => 'currentaffairs' }, (int) 26 => object(Cake\ORM\Entity) { 'tag' => 'World Economy', 'keyword' => 'world-economy', 'id' => (int) 7552, 'title' => 'Rupee depreciating', 'description' => '<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Issue</strong></span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The Indian rupee has lost about 4.2% of its value over the last few weeks and hit a nine-month low of 75.4 against the US dollars.</span></span></p> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Background</strong></span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The rupee has been under tremendous pressure due to rising cases of Covid-19 as well as threat of a lockdown.</span></span></p> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Details</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The further decline was fuelled by RBI’s decision to keep policy rates same and injecting liquidity through the Government Securities Acquisition Programme (G-SAP) programme.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The Rupee has been the weakest emerging market currencies against the US dollar. It is only behind the Turkish New Lira that has fallen 4.36%.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Brazilian Real has lost about 3.99% and Russian Rubble has lost about 3.25 per cent. Thai Baht and Indonesian Rupiah have also lost significant value.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Reasons for the decline</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Rising Covid numbers has been the biggest concern. Many states are considering more stringent lockdown measures.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The dollar has also strengthened as expectations have risen due to better growth in US economy in future.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The RBI G-SAP programme to infuse liquidity in the market is believed to be quantitative easing measure for increasing government’s borrowing programme.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Foreign Portfolio Investors have pulled out large amount of money from Indian market due to delay in economic recovery. This has further degraded rupee.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Future prospects</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The Rupee is expected to hit 77-78 over the future course of time. This has raised concerns among importers as cost of their product increases.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The government and RBI are trying to boost exports and promote local industries. This will prompt them to avoid interfering in preventing decline.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Effects of Rupee value on imports and exports</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The exchange value of Rupee has great implications on exports and imports. Imports will become costly as Rupee value depreciates and cheaper as a result of appreciation.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Similarly, if Rupee value depreciates than exports will become cheaper. It will become costly if value of Rupee appreciates.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Quantitative easing</strong></span></span></p> <p><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">Quantitative easing (QE) is a type of unconventional monetary policy in which a central bank buys longer-term securities from the open market so as to increase the money supply and encourage lending and investment.</span></span></p> ', 'created_date' => object(Cake\I18n\FrozenDate) {}, 'posturl' => 'rupee-depreciating', 'image' => 'https://www.mediafire.com/convkey/5212/jgg3cvufd2ja2tq6g.jpg', 'fbimage' => 'https://www.mediafire.com/convkey/5212/jgg3cvufd2ja2tq6g.jpg', 'metatitle' => 'Rupee depreciating | What’s behind the currency's fall', 'metakeyword' => 'Rupee depreciating | Rupee depreciation to help boost Indian farm | textile and jewellery exports | What’s behind the currency's fall', 'metadescription' => 'The further decline was fuelled by RBI’s decision to keep policy rates same and injecting liquidity through the Government Securities Acquisition Programme', 'author' => null, 'downlaodpdf' => 'https://www.mediafire.com/file/akmodj5kxy1fvdd/2._Rupee_depreciating.pdf/file', '[new]' => false, '[accessible]' => [ [maximum depth reached] ], '[dirty]' => [[maximum depth reached]], '[original]' => [[maximum depth reached]], '[virtual]' => [[maximum depth reached]], '[errors]' => [[maximum depth reached]], '[invalid]' => [[maximum depth reached]], '[repository]' => 'currentaffairs' }, (int) 27 => object(Cake\ORM\Entity) { 'tag' => 'World Economy', 'keyword' => 'world-economy', 'id' => (int) 7930, 'title' => 'Edible oils turn costlier', 'description' => '<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Issue</strong></span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The prices of edible oil have rise steeply over the last few months. This is likely to put more financial strain on the government.</span></span></p> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Background</strong></span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The sharp rise in price is visible in times where household incomes have plummeted low due to the pandemic.</span></span></p> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Details</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The rise of edible oil prices have been between 20 percent and 56 percent. The oils include mustard oil, soya oil, vanaspati oil, sunflower oil and palm oil.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The price of packed mustard oil has rise by 44 percent over last year. Sunflower oil and soya oil prices too have rise by over 50 percent.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Consumption of oil</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The share of refined oil such as sunflower and palm has been high in urban areas. In rural areas, mustard oil has highest consumption. This is mainly due to changing food habits.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The consumption rate of oils has increased year by year due to easy availability of oil in domestic as well as international markets.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Production of oil</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The rate of consumption and domestic availability does not match. This has forced India to import majority of its oil needs.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">In the year 2019-20, India has imported about 56 percent of its oil demands through imports. They include palm, sunflower and soya bean.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The major import sources of oil are Brazil and Argentina (soya bean), Malaysia and Indonesia (palm oil), Argentina and Ukraine (sunflower).</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Reasons for price rise</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The major reason for price rise is the sharp increase in international future contracts. Since our majority supply is imported, the effects are more intense.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Another reason is the increase in production of biofuel from vegetable oil. This has been particularly visible in countries such as USA.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The La Nina has destroyed large plantation of oil crops in Indonesia as well as Argentina. This has created shortages of availability.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Measures to reduce price</strong></span></span></p> <p><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">The best method would be to decrease import duties on the vegetable oil from other countries. Cess imposed should be taken back.</span></span></p> ', 'created_date' => object(Cake\I18n\FrozenDate) {}, 'posturl' => 'edible-oils-turn-costlier', 'image' => 'https://www.mediafire.com/file/yfdzgmzen3i1q83/3.jpg', 'fbimage' => 'https://www.mediafire.com/file/yfdzgmzen3i1q83/3.jpg', 'metatitle' => 'Edible oils turn costlier', 'metakeyword' => 'Edible oils turn costlier | Prices of edible oils to stay high till March | Why edible oils are costlier', 'metadescription' => 'The prices of edible oil have rise steeply over the last few months. This is likely to put more financial strain on the government. The sharp rise in price is visible', 'author' => null, 'downlaodpdf' => 'https://www.mediafire.com/file/foahjwumsndge4c/3._Edible_oils_turn_costlier.pdf/file', '[new]' => false, '[accessible]' => [ [maximum depth reached] ], '[dirty]' => [[maximum depth reached]], '[original]' => [[maximum depth reached]], '[virtual]' => [[maximum depth reached]], '[errors]' => [[maximum depth reached]], '[invalid]' => [[maximum depth reached]], '[repository]' => 'currentaffairs' }, (int) 28 => object(Cake\ORM\Entity) { 'tag' => 'World Economy', 'keyword' => 'world-economy', 'id' => (int) 7977, 'title' => 'US investigation into digital services tax', 'description' => '<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Issue</strong></span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The US government has decided to suspend the punitive taxes on countries such as India, UK, Turkey etc until negotiations and investigations are completed.</span></span></p> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Background</strong></span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The previous Trump regime had imposed taxes on products from several countries including India, citing unfair trade practices.</span></span></p> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Details</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The US is currently carrying out negotiation with the concerned countries in various platforms such as OECD and G20.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The taxes and tariffs are suspended only temporarily and the government still has powers under Section 301 to impose in future.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Investigation on digital service taxation</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The US had conducted investigations into the taxes imposed by several countries on digital giants such as Google, Apple, Facebook and Amazon.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">They said that the taxation imposed by these countries were discriminative against the international taxation principles and burdened these companies.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">US has recently imposed 25% taxes on several goods from these countries but later had them suspended until investigations and negotiations are taking place.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>India’s digital tax</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The central government had imposed a 2 percent digital service tax on transactions carried out by non-resident digital operators having turnover above 2 crore.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The scope of the tax has been expanded to include services that earlier were restricted to only digital advertising.</span></span></p> </li> <li> <p><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">The law will effectively tax e-commerce operators outside the country who are involved in online sale of goods and providing services.</span></span></p> </li> </ul> ', 'created_date' => object(Cake\I18n\FrozenDate) {}, 'posturl' => 'us-investigation-into-digital-services-tax', 'image' => 'https://www.mediafire.com/file/ynv4apxdx9ic520/2_%25281%2529.jpg', 'fbimage' => 'https://www.mediafire.com/file/ynv4apxdx9ic520/2_%25281%2529.jpg', 'metatitle' => 'US investigation into digital services tax', 'metakeyword' => 'US investigation into digital services tax | US suspends tariffs imposed on India | US investigation into digital services tax | what is the case against India', 'metadescription' => 'The US government has decided to suspend the punitive taxes on countries such as India, UK, Turkey etc until negotiations and investigations are completed.', 'author' => null, 'downlaodpdf' => 'https://www.mediafire.com/file/cifsts8d3jpuan4/2._US_investigation_into_digital_services_tax.pdf/file', '[new]' => false, '[accessible]' => [ [maximum depth reached] ], '[dirty]' => [[maximum depth reached]], '[original]' => [[maximum depth reached]], '[virtual]' => [[maximum depth reached]], '[errors]' => [[maximum depth reached]], '[invalid]' => [[maximum depth reached]], '[repository]' => 'currentaffairs' }, (int) 29 => object(Cake\ORM\Entity) { 'tag' => 'World Economy', 'keyword' => 'world-economy', 'id' => (int) 7998, 'title' => 'G7 corporate tax deal', 'description' => '<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Issue</strong></span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Countries part of G7 grouping have reached an agreement regarding taxation of multinational companies.</span></span></p> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Background</strong></span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">From a long time, many multinational companies are using loopholes in taxation system to transfer their profits to countries where there are low taxes.</span></span></p> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Details</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">In addition to this, all the member countries have decided to have a minimum tax rate so as to prevent undercutting to attract foreign investments.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Countries such as the UK, US, Germany, Canada, France, Italy and Japan have been part of the agreement. This deal will be discussed during G20 summit.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>The decisions</strong></span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The major decision is to tax multi-national companies in countries in which they operate. A minimum tax of 15% will be applied by all countries to prevent undercutting.</span></span></p> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Significance of the minimum rate</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The 15% minimum floor rate is important because other countries may use this opportunity to increase their foreign investments.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Earlier a race by countries to attract higher investments had led to slashing of rates to minimum, leading to losses in taxes.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Target companies</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">World’s biggest corporations such as Google, Apple, and Facebook etc pay one of the lowest taxes in the world considering their profits.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">These companies make use of large subsidiaries to transfer profits into low tax havens such as Ireland, Bahamas or British Virgin islands. In this way they get to pay low taxes in operating countries.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>India’s position</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Indian government is in need of foreign investments and had cut the corporate tax for foreign companies to 22%.</span></span></p> </li> <li> <p><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">By adopting a non-flexible taxation regime, it may lose out on the potential benefits it may have got by keeping tax rates lower.</span></span></p> </li> </ul> ', 'created_date' => object(Cake\I18n\FrozenDate) {}, 'posturl' => 'g7-corporate-tax-deal', 'image' => 'https://www.mediafire.com/file/uiabyflfddrqj1e/3.jpg', 'fbimage' => 'https://www.mediafire.com/file/uiabyflfddrqj1e/3.jpg', 'metatitle' => 'G7 corporate tax deal | India’s position', 'metakeyword' => 'G7 corporate tax deal | G7 deal for minimum 15% global corporate tax to benefit India', 'metadescription' => 'From a long time, many multinational companies are using loopholes in taxation system to transfer their profits to countries where there are low taxes.', 'author' => null, 'downlaodpdf' => 'https://www.mediafire.com/file/beyd1k8hqhairx3/3._G7_corporate_tax_deal.pdf/file', '[new]' => false, '[accessible]' => [ [maximum depth reached] ], '[dirty]' => [[maximum depth reached]], '[original]' => [[maximum depth reached]], '[virtual]' => [[maximum depth reached]], '[errors]' => [[maximum depth reached]], '[invalid]' => [[maximum depth reached]], '[repository]' => 'currentaffairs' }, (int) 30 => object(Cake\ORM\Entity) { 'tag' => 'World Economy', 'keyword' => 'world-economy', 'id' => (int) 8248, 'title' => 'OPEC’s output pact proposal', 'description' => '<p><strong>Issue</strong></p> <p>The talks held between OPEC+ countries have failed to give any result after UAE stopped a conditional supply agreement in addition to output pact.</p> <p> </p> <p><strong>Background</strong></p> <p>OPEC+ has been contemplating increasing production of crude oil as demand has increased. Certain countries are fearful of price fall.</p> <p> </p> <p><strong>Details</strong></p> <ul> <li> <p>The OPEC+ group had made two year deal to reduce crude oil production in response to fall in prices, owing to decrease in demand.</p> </li> <li> <p>The price had reached an 18 year low of less than $20 per barrel. Several exchanges had sold crude oil for negative rates.</p> </li> <li> <p>The deal had envisioned an initial cut of 22 million barrels per day from the pre-pandemic levels. This was about 22 percent of a total output.</p> </li> <li> <p>The price has since increased after vaccination process rolled out. Now the price stands at about $76 per barrel. The increase in demand was the reason for the rise in prices.</p> </li> </ul> <p> </p> <p><strong>UAE’s concerns</strong></p> <ul> <li> <p>UAE wanted the bloc to increase production from August, without specifying the exact numbers. It has also not agreed for extension of production limit deal.</p> </li> <li> <p>UAE feels that the OPEC+ deal had put limits without considering its production capacity. The production levels suggested to it were unfair.</p> </li> </ul> <p> </p> <p><strong>Effects on India</strong></p> <ul> <li> <p>India was expecting that a suitable deal was reached between OPEC+ countries to increase daily production levels. Delay in reaching deal will further escalate the prices.</p> </li> <li> <p>High crude prices have made petrol prices breach Rs 100 per litre mark in many states. It may further see inflation rate climb if prices don’t sober down.</p> </li> </ul> ', 'created_date' => object(Cake\I18n\FrozenDate) {}, 'posturl' => 'opecs-output-pact-proposal', 'image' => 'https://www.mediafire.com/file/p8t3g76ro6rhzdv/2.jpg', 'fbimage' => 'https://www.mediafire.com/file/p8t3g76ro6rhzdv/2.jpg', 'metatitle' => 'OPEC’s output pact proposal', 'metakeyword' => 'OPEC’s output pact proposal', 'metadescription' => 'The talks held between OPEC+ countries have failed to give any result after UAE stopped a conditional supply agreement in addition to output pact.', 'author' => null, 'downlaodpdf' => 'https://www.mediafire.com/file/y6x5k9s0tlg0i02/2._OPEC%25E2%2580%2599s_output_pact_proposal.pdf/file', '[new]' => false, '[accessible]' => [ [maximum depth reached] ], '[dirty]' => [[maximum depth reached]], '[original]' => [[maximum depth reached]], '[virtual]' => [[maximum depth reached]], '[errors]' => [[maximum depth reached]], '[invalid]' => [[maximum depth reached]], '[repository]' => 'currentaffairs' }, (int) 31 => object(Cake\ORM\Entity) { 'tag' => 'World Economy', 'keyword' => 'world-economy', 'id' => (int) 8801, 'title' => 'Major container shortage', 'description' => '<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Issue</strong></span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The freight rates have risen by over 300 per cent in the past year due to shortages in container for international shipping.</span></span></p> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Background</strong></span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The government has asked exporters to help it in tiding over the crisis, which has hit key trading routes of the world.</span></span></p> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Details</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Many containers have been left in inland depots and stuck at ports for long durations due to reduction in global shipping owing to the pandemic.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The reduction in shipping and also ships has led to fewer empty containers being picked up, causing the current crisis.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The shipping ports of the US have been congested, causing increase in turnaround time for ships to transport the containers.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The fast pickup of global trade has not been balanced with recovery of container market. The shipping charges were also increased due to recovery in international trade.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Impact on Indian exporters</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Indian exporters have been forced to wait longer to receive payment for exported goods. This is due to delay in shipments and liquidity issues.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The shipment time has been increased to 70-90 days instead of 40-45 days that has resulted in late payments for exporters.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Government’s role in addressing issue</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The government can control the export of empty containers as foreign importers are ready to pay premium on empty containers.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Exporters are also asking the government to release containers that have been confiscated by government agencies or abandoned.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">There is also demand to introduce a freight support scheme for all exports till the charges come back to normal.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Government can ask shipping companies to remove the premium charges on booking early and bring back bookings on a first come first serve basis.</span></span></p> </li> <li> <p><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">The move by the government to manufacture shipping containers domestically needs to be further speeded up.</span></span></p> </li> </ul> ', 'created_date' => object(Cake\I18n\FrozenDate) {}, 'posturl' => 'major-container-shortage', 'image' => 'https://www.mediafire.com/file/1x1uuqkxzk4i6by/1.jpg', 'fbimage' => 'https://www.mediafire.com/file/1x1uuqkxzk4i6by/1.jpg', 'metatitle' => 'Major container shortage', 'metakeyword' => 'Major container shortage | Government’s role in addressing issue', 'metadescription' => 'Many containers have been left in inland depots and stuck at ports for long durations due to reduction in global shipping owing to the pandemic.', 'author' => null, 'downlaodpdf' => 'https://www.mediafire.com/file/rocepuo9b44b5wf/1.__Major_container_shortage.pdf/file', '[new]' => false, '[accessible]' => [ [maximum depth reached] ], '[dirty]' => [[maximum depth reached]], '[original]' => [[maximum depth reached]], '[virtual]' => [[maximum depth reached]], '[errors]' => [[maximum depth reached]], '[invalid]' => [[maximum depth reached]], '[repository]' => 'currentaffairs' }, (int) 32 => object(Cake\ORM\Entity) { 'tag' => 'World Economy', 'keyword' => 'world-economy', 'id' => (int) 8858, 'title' => 'Evergrande crisis', 'description' => '<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Issue</strong></span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Global markets witnessed a sharp slide due to financial crisis at Evergrande real-estate company of China.</span></span></p> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Background</strong></span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Evergrande is biggest as well as most indebted real-estate company of China. It is expected that the situation may turn into a global financial crisis.</span></span></p> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Details</strong></span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">There is an expectation that Chinese authorities may undertake a regulatory crackdown on the country’s real estate sector. </span></span></p> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>The rise of Evergrande</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Evergrande has been the poster boy of the Chinese real estate boom. It started out in 1996 selling bottled water followed by venturing into big farming.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The company cashed on the demand for new homes to expand its operations. It was the main reason behind the post-pandemic Chinese economic expansion.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>The problems</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The investigations into digital business by Chinese authorities also started the probes into the high borrowings of property developers. </span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The company tried to sell some of its business. Due to slowing down of demand in the housing sector, the company is now facing cash crunch.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The company owes around $300 billion to the market. Its credit ratings have gone down and share prices have fallen.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Due to the problems, about 800 projects have been stopped. Many suppliers are waiting payment. Customers are waiting for completion of their homes.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Triggering of global crisis</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">China has been the major driver of global economic recovery. Slowdown in the market will have global repercussions.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The entire economy of the country may be affected if real estate sector collapses. This is because three quarters of the country’s household wealth is locked up in housing sector.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Apart from Evergrande, state-owned financial conglomerate Huarong is facing debts of $240 billion. This may be an indication of overall situation in the economy.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Effects on India</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">China is one of the largest destinations for Indian iron ore. Collapse of real-estate could reduce the demand for the commodity. Mining companies may also collapse.</span></span></p> </li> <li> <p><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">Apart from India, global companies also saw a fall in their fortune. The richest 500 people lost a combined $135 billion.</span></span></p> </li> </ul> ', 'created_date' => object(Cake\I18n\FrozenDate) {}, 'posturl' => 'evergrande-crisis', 'image' => 'https://www.mediafire.com/file/6lttpxsg7g6ua01/4_%25282%2529.jpg', 'fbimage' => 'https://www.mediafire.com/file/6lttpxsg7g6ua01/4_%25282%2529.jpg', 'metatitle' => 'Evergrande crisis & Triggering of global crisis', 'metakeyword' => 'Evergrande crisis | The rise of Evergrande | Evergrande crisis & Triggering of global crisis', 'metadescription' => 'Evergrande is biggest as well as most indebted real-estate company of China. It is expected that the situation may turn into a global financial crisis.', 'author' => null, 'downlaodpdf' => 'https://www.mediafire.com/file/unosaoikbhk0x3j/4._Evergrande_crisis.pdf/file', '[new]' => false, '[accessible]' => [ [maximum depth reached] ], '[dirty]' => [[maximum depth reached]], '[original]' => [[maximum depth reached]], '[virtual]' => [[maximum depth reached]], '[errors]' => [[maximum depth reached]], '[invalid]' => [[maximum depth reached]], '[repository]' => 'currentaffairs' }, (int) 33 => object(Cake\ORM\Entity) { 'tag' => 'World Economy', 'keyword' => 'world-economy', 'id' => (int) 8886, 'title' => 'Federal Reserve’s stance and India', 'description' => '<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Issue</strong></span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The Federal Reserve has announced to maintain an ‘accommodative stance’ until inflation targets are achieved and employment targets reached.</span></span></p> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Background</strong></span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Stock exchanges in India were worried ahead of the meeting of the Federal Reserve. The decisions have brought comfort to market participants.</span></span></p> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Details</strong></span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The indications of rates being raised towards the end of 2022 and gradual tapering of the bond purchase programme is also a welcome sign.</span></span></p> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>The effects</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The Sensex at Bombay Stock Exchange rose by 1.6 percent or 958 points to reach a new high of 59,885. </span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The Nifty at National Stock Exchange also rose by 1.57 per cent to reach 17,882. The possible concerns due to Evergrande default has also waned away.</span></span></p> </li> </ul> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"> </span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>The decisions</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The range for federal funds has been kept at 0 to 1/4 per cent. This will be maintained until labour market conditions achieve stability.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">To slow down the flow of liquidity, the market expects the Fed to start tapering of bond market. It will enhance diversion.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Implications of decision</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">A decline of $15 billion per month will be experienced in asset purchases. There is a projection that hike will be made by 25 basis points for at least three times in 2023.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The low rate by US Fed will ensure that fund flows from foreign portfolio investors (FPIs) into Indian equities.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>The road ahead</strong></span></span></p> <p><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">Faster rate of vaccination is expected to neutralize the effects of a third wave. The economy will grow due to consumption-driven growth.</span></span></p> ', 'created_date' => object(Cake\I18n\FrozenDate) {}, 'posturl' => 'federal-reserves-stance-and-india', 'image' => 'https://www.mediafire.com/file/fceyxyvvrpvtuqt/4_%25282%2529.jpg', 'fbimage' => 'https://www.mediafire.com/file/fceyxyvvrpvtuqt/4_%25282%2529.jpg', 'metatitle' => 'Federal Reserve’s stance and India', 'metakeyword' => 'Federal Reserve’s stance and India & Implications of decision', 'metadescription' => 'The Federal Reserve has announced to maintain an ‘accommodative stance’ until inflation targets are achieved and employment targets reached.', 'author' => null, 'downlaodpdf' => 'https://www.mediafire.com/file/r3ufytlvbw3y6g7/4._Federal_Reserve%25E2%2580%2599s_stance_and_India.pdf/file', '[new]' => false, '[accessible]' => [ [maximum depth reached] ], '[dirty]' => [[maximum depth reached]], '[original]' => [[maximum depth reached]], '[virtual]' => [[maximum depth reached]], '[errors]' => [[maximum depth reached]], '[invalid]' => [[maximum depth reached]], '[repository]' => 'currentaffairs' }, (int) 34 => object(Cake\ORM\Entity) { 'tag' => 'World Economy', 'keyword' => 'world-economy', 'id' => (int) 9031, 'title' => 'US plan for 1 trillion dollar platinum coin', 'description' => '<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Issue</strong></span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Some members of Democratic Party have suggested that a $1 trillion platinum coin may be issued to bypass the debt ceiling of the government.</span></span></p> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Background</strong></span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Republicans and Democrats are involved in a conflict over the ceiling on U.S. Government debt.</span></span></p> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Details</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The debt ceiling is the maximum amount that the government can borrow to finance its spending in a particular year.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The ceiling has been slowly increasing over the years from around $4 trillion in the early 1990s to $28.4 trillion in August, 2021. </span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The main aim of the debt ceiling is to prompt the government to spend within its limit. Most of the time the government is facing deficit, forcing it to borrow.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Conflicts</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Conflicts on debt ceiling are common between Republicans and Democrats whenever the other is in power. The incumbent government is always in fear of defaulting on its payment.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The current conflict is regarding plans by President Biden to spend $3 trillion on various social programmes. This needs the debt ceiling to be raised.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>The $1 trillion coin</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The token coin of the face-value will be paid to the U.S. Federal Reserve after getting issued from US treasury. The government does not have to borrow from market.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">In existing system, the US Federal Reserve sells bonds in the market to finance government’s borrowing. This increases government’s debt as bonds have to be paid back along with interest.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">When the $1 trillion coin is issued to the Federal Reserve, there will not be liabilities and debt ceiling will also not be elevated.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>The mechanism</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">A loophole in US law allows US treasury to mint platinum coins worth any denomination regardless of the actual platinum content.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The US treasury can thus mint a coin of any denomination and deposit it to US Federal Reserve and get equal amounts in dollars.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Concerns</strong></span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">There are concerns that pumping money into the economy will increase prices of goods and services. This has already been observed.</span></span></p> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Supporting claims</strong></span></span></p> <p><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">To prevent inflation, the US Federal Reserve will sell bonds worth the same amount in the market. This will suck out money and prevent inflation.</span></span></p> ', 'created_date' => object(Cake\I18n\FrozenDate) {}, 'posturl' => 'us-plan-1-trillion-platinum-coin', 'image' => 'https://www.mediafire.com/file/t8nd2q71yy8n8l0/4_%25282%2529.jpg', 'fbimage' => 'https://www.mediafire.com/file/t8nd2q71yy8n8l0/4_%25282%2529.jpg', 'metatitle' => 'US plan for 1 trillion dollar platinum coin', 'metakeyword' => 'US plan for 1 trillion dollar platinum coin', 'metadescription' => 'Some members of Democratic Party have suggested that a $1 trillion platinum coin may be issued to bypass the debt ceiling of the government.', 'author' => null, 'downlaodpdf' => 'https://www.mediafire.com/file/ijw72zymzuooma8/4._US_plan_for_%25241_trillion_platinum_coin.pdf/file', '[new]' => false, '[accessible]' => [ [maximum depth reached] ], '[dirty]' => [[maximum depth reached]], '[original]' => [[maximum depth reached]], '[virtual]' => [[maximum depth reached]], '[errors]' => [[maximum depth reached]], '[invalid]' => [[maximum depth reached]], '[repository]' => 'currentaffairs' }, (int) 35 => object(Cake\ORM\Entity) { 'tag' => 'World Economy', 'keyword' => 'world-economy', 'id' => (int) 9067, 'title' => 'Slide in China’s GDP', 'description' => '<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Issue</strong></span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The industrial output of China grew lesser than expected, resulting in slowing down its GDP growth rate to 4.9% in the third quarter.</span></span></p> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Background</strong></span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">China has been witnessing an economic slowdown owing to various reasons. The major reason has been financial crisis in its real estate sector.</span></span></p> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Details</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The industrial production was expected to rise by 4-4.5% in September but it could manage to grow only by 3.1%.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">One reason could be the stable base from previous year as China had managed to record higher growth after recovering from pandemic.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The major reason could be systemic issues in its economy. It includes a massive fuel crunch, which has crippled Chinese industry.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The other could be the crisis in real estate sector fuelled by the Evergrande fiasco. In addition, souring of business sentiment due to federal crackdown has also played a part.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Indications from the data</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The marquee companies fuelling growth in China were less interested in investing in new projects.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The fuel crisis has crippled production of many power based companies such as automobiles. The coal shortage is also very prominent.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Factories in China’s industrial heartland had to curtail output in late September as non-availability of coal caused a major crisis.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Implications</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The output decreased drastically also due to non-availability of electricity. This was after the country witnessed shortage of fuel for electricity production.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The fixed asset investment came in lower than expected due to failure in real estate sector of the country. Many infrastructure projects have been scrapped.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Impact on India</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">China is India’s principal trading partner. The bilateral trade has grown by 50 per cent in the first nine months of 2021.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Imports from China grew to $68.5 billion in the first nine months of 2021. India’s trade deficit with China has grown to $46.55 billion during this period.</span></span></p> </li> <li> <p><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">India’s trade with China is expected to cross $100 billion by the end of the year. India is still dependent on China for products such as fertilizers, electronic equipments, API, chemicals, telecom equipments and automobile parts.</span></span></p> </li> </ul> ', 'created_date' => object(Cake\I18n\FrozenDate) {}, 'posturl' => 'slide-chinas-gdp', 'image' => 'https://www.mediafire.com/file/zn1gxwbzolytftr/3.jpg', 'fbimage' => 'https://www.mediafire.com/file/zn1gxwbzolytftr/3.jpg', 'metatitle' => 'Slide in China’s GDP and Impact on India', 'metakeyword' => 'Slide in China’s GDP and Indications from the data | Slide in China’s GDP and Impact on India', 'metadescription' => 'China has been witnessing an economic slowdown owing to various reasons. The major reason has been financial crisis in its real estate sector.', 'author' => null, 'downlaodpdf' => 'https://www.mediafire.com/file/qthk8111xbv5uvj/3._Slide_in_China%25E2%2580%2599s_GDP.pdf/file', '[new]' => false, '[accessible]' => [ [maximum depth reached] ], '[dirty]' => [[maximum depth reached]], '[original]' => [[maximum depth reached]], '[virtual]' => [[maximum depth reached]], '[errors]' => [[maximum depth reached]], '[invalid]' => [[maximum depth reached]], '[repository]' => 'currentaffairs' }, (int) 36 => object(Cake\ORM\Entity) { 'tag' => 'World Economy', 'keyword' => 'world-economy', 'id' => (int) 9168, 'title' => 'US and EU clash on steel and aluminium', 'description' => '<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Issue</strong></span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">A dispute over steel and aluminium tariffs between United States and European Union was resolved after a consensus on charges.</span></span></p> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Details</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The United States has decided not to impose Section 232 duties introduced by former President Donald Trump.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">This will allow import of steel and aluminium without any duty from European Union at a historically decided volume.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Tariffs on US products such as whiskey, powerboats and Harley-Davidson motorcycles will be suspended by EU.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">To address carbon intensity and global overcapacity, US and EU will negotiate the world’s first carbon-based sectoral arrangement on steel and aluminium trade by 2024.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">US and EU will work together to restrict access to their markets for “dirty steel”. They will prevent countries that dump steel from access to their markets</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">There is a plan to bring like-minded countries such as Japan and Britain for resolving issues related to steel and aluminium.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>China’s challenge</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">China is the producer of more than half of the world's steel. This has created over-production and threatened other steel companies.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Steel industry is responsible for 10-20 percent of carbon emissions in the country. This makes it one of the largest CO<sub>2</sub> emitters of the world.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">China is aiming at making top five steelmakers to account for 40% of the country's total steel output by 2025.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Global expansion</strong></span></span></p> <p><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">Domestic demand for iron and steel in China has plateaued. It is looking for expansion to markets that are growing very fast.</span></span></p> ', 'created_date' => object(Cake\I18n\FrozenDate) {}, 'posturl' => 'us-and-eu-clash-steel-aluminium', 'image' => 'https://www.mediafire.com/file/lhd9aq0ohpkxtq2/3.jpg', 'fbimage' => 'https://www.mediafire.com/file/lhd9aq0ohpkxtq2/3.jpg', 'metatitle' => 'US and EU clash on steel and aluminium', 'metakeyword' => 'US and EU clash on steel and aluminium', 'metadescription' => 'To address carbon intensity and global overcapacity, US and EU will negotiate the world’s first carbon-based sectoral arrangement on steel and aluminium', 'author' => null, 'downlaodpdf' => 'https://www.mediafire.com/file/99ptc2crxlwk9w0/3._US_and_EU_clash_on_steel_and_aluminium.pdf/file', '[new]' => false, '[accessible]' => [ [maximum depth reached] ], '[dirty]' => [[maximum depth reached]], '[original]' => [[maximum depth reached]], '[virtual]' => [[maximum depth reached]], '[errors]' => [[maximum depth reached]], '[invalid]' => [[maximum depth reached]], '[repository]' => 'currentaffairs' }, (int) 37 => object(Cake\ORM\Entity) { 'tag' => 'World Economy', 'keyword' => 'world-economy', 'id' => (int) 9232, 'title' => 'US inflation and its impact', 'description' => '<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Issue</strong></span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Retail inflation in US has spiked to 6.2 per cent in October. In India, retail inflation rose to 4.5 per cent according to India’s National Statistical Office (NSO).</span></span></p> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Background</strong></span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The inflation has gained lot of attention, both globally and in India. </span></span></p> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Details</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Inflation is defined at a rate at which prices increase over a given period. Inflation rate is calculated on a year-on-year basis.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">If the rate of inflation for a particular month is 10 per cent, it implies that the prices in that month were 10 per cent more than the prices in the same month a year earlier.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The main problem is that inflation erodes purchasing power of people. The poor sections are most hurt as less money and higher prices affect the livelihood.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>The concern in US</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The 6.2 percent increase in inflation will not have much effect in India but it is the largest year-on-year increase in the last three decades in US.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The Federal Reserve targets an inflation rate of just 2 per cent. It is a massive concern for its citizens as the trend has been increasingly seen.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Cause of inflation in US</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The reason may be either due to increase in demand or a decrease in supply. The US has registered quick recovery after vaccination.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">There was unexpected recovery in all-round demand from consumers. The government invested billions of dollars to stimulate demand.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The demand for the consumables has increased but supply is yet to be fully back on track. This supply chain collapse has been a major reason for inflation.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Global situation</strong></span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The inflation in US has been the sharpest but other developed economies are also facing similar trend. This includes countries such as China, Japan and Germany.</span></span></p> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Indian situation</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Inflation rise in India was observed even before pandemic. The pandemic has worsened the situation as supply chains collapsed.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The retail inflation rate in India has been above comfort level of RBI. This has forced RBI to keep rates unchanged even after India entered technical recession.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The core inflation is a sign of worry for India. It is expected to worsen after getting impacted due to the global situation.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Impact on India</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">As inflation grows in US, the prices of goods imported from US become costlier. The US Fed will likely tighten monetary policy.</span></span></p> </li> <li> <p><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">Indian firms trying to raise money from outside India will find it costlier to do so. RBI will be forced to increase interest rates to align with international trend.</span></span></p> </li> </ul> ', 'created_date' => object(Cake\I18n\FrozenDate) {}, 'posturl' => 'us-inflation-and-impact', 'image' => 'https://www.mediafire.com/file/3w73q5tig2gjkzr/1.jpg', 'fbimage' => 'https://www.mediafire.com/file/3w73q5tig2gjkzr/1.jpg', 'metatitle' => 'US inflation and its impact | Cause of inflation in US', 'metakeyword' => 'US inflation and its impact | Cause of inflation in US', 'metadescription' => 'Retail inflation in US has spiked to 6.2 per cent in October. In India, retail inflation rose to 4.5 per cent according to India’s National Statistical Office (NSO).', 'author' => null, 'downlaodpdf' => 'https://www.mediafire.com/file/9ysob8ocrg0cqw4/1._US_inflation_and_its_impact.pdf/file', '[new]' => false, '[accessible]' => [ [maximum depth reached] ], '[dirty]' => [[maximum depth reached]], '[original]' => [[maximum depth reached]], '[virtual]' => [[maximum depth reached]], '[errors]' => [[maximum depth reached]], '[invalid]' => [[maximum depth reached]], '[repository]' => 'currentaffairs' }, (int) 38 => object(Cake\ORM\Entity) { 'tag' => 'World Economy', 'keyword' => 'world-economy', 'id' => (int) 9638, 'title' => 'US Fed decision impacts markets', 'description' => '<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Issue</strong></span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The release of minutes of Federal Reserve meeting has triggered a panic among markets across the world.</span></span></p> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Background</strong></span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Indian share markets BSE Sensex and NSE Nifty witnessed a slump after four continuous days of gain.</span></span></p> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Details</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The minutes of Federal Reserve meeting indicated that the American central bank might be contemplating to raise interest rates at a faster rate to counter runaway inflation.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The Central Bank believes that the domestic American job market is robust enough to handle raise in interest rates. There are plans to hike interest rates three times next year.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">This re-imposes belief that the Reserve is thinking of rolling back the financial stimulus that had till now feeding stock market gains across geographies.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>The American situation</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Many policy makers in US believe that the inflation was diffusing into more areas of the economy and would stay on for a much more time.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The Fed wants to taper off the bond purchases that inject money into the financial system by hiking interest steeply in a short period.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The US economy is facing one of highest inflations in the history. There is a threat to growth as runaway prices may wreck havoc.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Indications</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The move is seen as a reversal of the central bank’s expansionary monetary policy. It will curtail bond buying programme and bring down long-term interest rates.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The faster close-down of the bond-buying programme also means that interest rate hikes in the US are likely earlier than expected.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Concerns</strong></span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The high inflation will force the Fed to taper $30 billion a month of bonds instead of the $15 billion pace that it had announced earlier.</span></span></p> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Bond buying</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Bond buying, also known as quantitative easing is an extraordinary measure to help the financial markets and the economy, counter the impact of the pandemic.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The bond buying is a monetary policy tool using which the central bank purchases longer-term securities from the open market in order to increase the money supply and incentivize lending and investment.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Implications on India</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Raising Fed Rates would reduce difference between the interest rates of the two countries, making countries such as India less attractive for the currency carry trade.</span></span></p> </li> <li> <p><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">Higher returns in the US debt markets could impact emerging markets, reducing foreign investor enthusiasm.</span></span></p> </li> </ul> ', 'created_date' => object(Cake\I18n\FrozenDate) {}, 'posturl' => 'us-fed-decision-impacts-markets', 'image' => 'https://www.mediafire.com/file/m3mo7ev7yir3x1y/2.jpg', 'fbimage' => 'https://www.mediafire.com/file/m3mo7ev7yir3x1y/2.jpg', 'metatitle' => 'US Fed decision impacts markets', 'metakeyword' => 'US Fed decision impacts markets', 'metadescription' => 'The minutes of Federal Reserve meeting indicated that the American central bank might be contemplating to raise interest rates at a faster rate to counter', 'author' => null, 'downlaodpdf' => 'https://www.mediafire.com/file/f99dp6t7qbgdqpk/2._US_Fed_decision_impacts_markets.pdf/file', '[new]' => false, '[accessible]' => [ [maximum depth reached] ], '[dirty]' => [[maximum depth reached]], '[original]' => [[maximum depth reached]], '[virtual]' => [[maximum depth reached]], '[errors]' => [[maximum depth reached]], '[invalid]' => [[maximum depth reached]], '[repository]' => 'currentaffairs' }, (int) 39 => object(Cake\ORM\Entity) { 'tag' => 'World Economy', 'keyword' => 'world-economy', 'id' => (int) 9656, 'title' => 'Record inflation in Eurozone', 'description' => '<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Issue</strong></span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The surging food and energy cost has resulted in highest level of inflation in the 19 countries that use the euro currency.</span></span></p> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Background</strong></span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Consumer prices in European Union economies rose by 5 per cent in December compared with the previous year. The eurozone economies include major countries like France and Germany.</span></span></p> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Details</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Energy prices have jumped by over 26 per cent over the past year, which however is lower than previous month.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Food prices have seen an increase to 3.2 per cent, from November’s 2.2 per cent rate. The price of goods rose at a rate of 2.9 per cent.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Price increase in services eased to 2.4 per cent. This was because rise on Omicron variant resulted in reduced demand for holiday travel. </span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Importance</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The latest numbers mark the highest level of inflation since recordkeeping for the euro currency began in 1997.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The numbers indicate that food at store to shopping trips and fuel are costing more as demand for goods grows after economic recovery.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">European Central Bank is under pressure to act on inflation since it has kept interest rates ultra-low to stimulate an economy.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Global inflation</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Inflation has grown globally including in the US, the fastest in last 39 years. Many previously stable economies such as Turkey have grappled to control the rate, which has soared to 36 percent.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The UK has also witnessed faster pace of inflation. The rate in Brazil has accelerated to more than 10 percent, the highest in last 10 years.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Global response</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Economies across the globe are raising interest rates to fight soaring inflation. This has been necessitated even as Omicron variant has been threatening economic slowdown.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The Bank of England last month raised its interest rates, becoming the first country in advanced economy to raise rates after pandemic began.</span></span></p> </li> <li> <p><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">The US Fed has indicated that it will resort to tighter fiscal policies and unwind its bond buying programme to counter inflation.</span></span></p> </li> </ul> ', 'created_date' => object(Cake\I18n\FrozenDate) {}, 'posturl' => 'record-inflation-eurozone', 'image' => 'https://www.mediafire.com/file/fr15vq6e2hrg3rw/2.jpg', 'fbimage' => 'https://www.mediafire.com/file/fr15vq6e2hrg3rw/2.jpg', 'metatitle' => 'Record inflation in Eurozone and Importance', 'metakeyword' => 'Record inflation in Eurozone and Importance', 'metadescription' => 'Consumer prices in European Union economies rose by 5 per cent in December compared with the previous year. The eurozone economies include major', 'author' => null, 'downlaodpdf' => 'https://www.mediafire.com/file/uog11q5d74ll4mo/2._Record_inflation_in_Eurozone.pdf/file', '[new]' => false, '[accessible]' => [ [maximum depth reached] ], '[dirty]' => [[maximum depth reached]], '[original]' => [[maximum depth reached]], '[virtual]' => [[maximum depth reached]], '[errors]' => [[maximum depth reached]], '[invalid]' => [[maximum depth reached]], '[repository]' => 'currentaffairs' }, (int) 40 => object(Cake\ORM\Entity) { 'tag' => 'World Economy', 'keyword' => 'world-economy', 'id' => (int) 9691, 'title' => 'High inflation in US', 'description' => '<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Issue</strong></span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Inflation rate in US is at record high, impacting citizens in day to day life. The current rates are in the red zone, forcing federal authorities to act.</span></span></p> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Background</strong></span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The effect of high inflation is seen by Americans at the used car lot, the supermarket, the gas station, the rental office.</span></span></p> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Details</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Compared to 12 months earlier, the Labor Department reported that consumer prices jumped 7% in December.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The “core” inflation rose 5.5% over the past year, which is the fastest since 1991. The rate growth has been more than 10% on majority of consumer goods.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>The situation</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Barely a year ago, there was a belief that recession was on the cards after people were confined to their homes owing to the pandemic.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The forecast by Fed said that consumer prices would end 2021 only about 1.8% higher than they were a year earlier, below the target rate of 2%.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Earlier experts dubbed the sudden spike in rates as a transitionary problem due to shipping delays and temporary shortages of supplies.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Since the rates refused to die down, Fed policymakers had been divided over whether to raise rates even once this year. </span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Causes of inflation spike</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">It was believed that economy was set for a record recession as consumption dipped, employment rates dropped, investments were reduced and service sector fell apart.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The turnaround occurred after the Federal government pumped in money in form of aid and money infusion. Interest rates were slashed by Federal Reserve.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">As people started coming out, business were unable to meet demands. Ports and freight yards couldn’t handle the traffic as supply chain shattered.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>The rise</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Companies transferred the high cost to consumers, who had staked in savings during the pandemic induced lockdown.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The relief package announced by President Biden to every household overheated an economy that was already sizzling on its own.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Lasting of inflation</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The prices set to stay for some more time as companies struggle to keep up with consumers’ demand for goods and services. </span></span></p> </li> <li> <p><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">The boosting jobs creation has ensured that Americans have money to spend on goods, further increasing prices. Control over money supply can ease some inflationary trends.</span></span></p> </li> </ul> ', 'created_date' => object(Cake\I18n\FrozenDate) {}, 'posturl' => 'high-inflation-us', 'image' => 'https://www.mediafire.com/file/aeb7cme7oa6kg7r/1_%25283%2529.jpg', 'fbimage' => 'https://www.mediafire.com/file/aeb7cme7oa6kg7r/1_%25283%2529.jpg', 'metatitle' => 'High inflation in US and Causes of inflation spike', 'metakeyword' => 'High inflation in US and Causes of inflation spike', 'metadescription' => 'Inflation rate in US is at record high, impacting citizens in day to day life. The current rates are in the red zone, forcing federal authorities to act.', 'author' => null, 'downlaodpdf' => 'https://www.mediafire.com/file/awra0nkh5m7pgdt/1._High_inflation_in_US.pdf/file', '[new]' => false, '[accessible]' => [ [maximum depth reached] ], '[dirty]' => [[maximum depth reached]], '[original]' => [[maximum depth reached]], '[virtual]' => [[maximum depth reached]], '[errors]' => [[maximum depth reached]], '[invalid]' => [[maximum depth reached]], '[repository]' => 'currentaffairs' }, (int) 41 => object(Cake\ORM\Entity) { 'tag' => 'World Economy', 'keyword' => 'world-economy', 'id' => (int) 9711, 'title' => 'India-UK free trade agreement negotiations', 'description' => '<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Issue</strong></span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">A formal negotiation for Free Trade Agreement (FTA) has been launched by India and the United Kingdom.</span></span></p> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Background</strong></span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Currently, the focus would be to avoid sensitive issues, covering only about 65% goods and 40% of services.</span></span></p> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Details</strong></span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Such deals are known as harvest deals and India is currently negotiating them with Australia, UAE, Canada and Israel.</span></span></p> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Early harvest pacts</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Opening bilateral trade between two countries on a restricted list of goods and services is known as early harvest trade. It can be later extended for full fledged FTA.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">These pacts target only easy and non-controversial aspects, leaving tougher goods and services for later. The complete FTA will be delayed in such instances.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">India had completed early harvest pact with Thailand in 2004 but has been unable to wrap up FTA. Similarly, FTA with Sri Lanka could not be completed in services.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">These pacts are used tactically so that a deal may be achieved with minimum commitments and would allow for contentious issues to be resolved later.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Concerns</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Only early harvest pacts would attract challenges from other countries of WTO. This is because, full FTA is the only exception to WTO rules.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Early harvest deal may reduce the incentive for one side to work towards a full FTA as they may get benefits early.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Current FTAs by India</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">India is working on FTAs with a number of countries including Australia, US and EU. It also has PTAs with several countries.</span></span></p> </li> <li> <p><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">The existing FTAs are comprehensive and cover goods, services, investment, IPR, etc. India is reviewing existing FTAs with South Korea, Japan and ASEAN on the ground of India’s rising trade deficit with these trading partners.</span></span></p> </li> </ul> ', 'created_date' => object(Cake\I18n\FrozenDate) {}, 'posturl' => 'india-uk-free-trade-agreement', 'image' => 'https://www.mediafire.com/file/l6j5mskr6l7nf5o/3.jpg', 'fbimage' => 'https://www.mediafire.com/file/l6j5mskr6l7nf5o/3.jpg', 'metatitle' => 'India-UK free trade agreement negotiations & Current FTAs by India', 'metakeyword' => 'India-UK free trade agreement negotiations & Current FTAs by India', 'metadescription' => 'Such deals are known as harvest deals and India is currently negotiating them with Australia, UAE, Canada and Israel.', 'author' => null, 'downlaodpdf' => 'https://www.mediafire.com/file/bhs41yw3ycw6wet/3._India-UK_free_trade_agreement_negotiations.pdf/file', '[new]' => false, '[accessible]' => [ [maximum depth reached] ], '[dirty]' => [[maximum depth reached]], '[original]' => [[maximum depth reached]], '[virtual]' => [[maximum depth reached]], '[errors]' => [[maximum depth reached]], '[invalid]' => [[maximum depth reached]], '[repository]' => 'currentaffairs' }, (int) 42 => object(Cake\ORM\Entity) { 'tag' => 'World Economy', 'keyword' => 'world-economy', 'id' => (int) 9898, 'title' => 'Dropping Russia from SWIFT', 'description' => '<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Issue</strong></span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">There are fears that Russia will be removed from SWIFT payments system in case it invades Ukraine.</span></span></p> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Background</strong></span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">SWIFT is a not-for-profit Belgian co-operative that provides secure messaging services for payments between banks.</span></span></p> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Details</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">It is not the first time SWIFT has been at the centre of controversy. Earlier in 2012 and 2018 it was barred from providing payment service to Iran aftermath of the sanctions.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">While there were discussions earlier if SWIFT could be forced to suspend services to Russia, it was felt that it would not impact Russia.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Significance of SWIFT</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The SWIFT operates messaging system for banks for payment requests and keeping a record of them on servers in Europe and the US. </span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Even though there are other cross-border payments services, SWIFT plays a central role in banking.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Impact on Russia</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Russia accounts for 1.5 per cent of total transactions on SWIFT. Russia has an alternative messaging system called SPFS.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">SPFS handles about one fifth of Russian transactions but is less sophisticated and incapable of completely replacing SWIFT.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Response of SWIFT</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">SWIFT considers itself to be neutral and any decisions on exclusion of Russia have to be taken by respective governments and competent authorities.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">US Dollars constitute about 40% of its payment flows and thus Washington has effective powers to control it.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Society for Worldwide Interbank Financial Telecommunication (SWIFT)</strong></span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">SWIFT is a financial intermediary and executor of transactions between banks worldwide. It is also involved in selling software and services to financial institutions.</span></span></p> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Working</strong></span></span></p> <p><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">SWIFT does not involve in fund transfer but only sends payment orders, which must be settled by correspondent accounts.</span></span></p> ', 'created_date' => object(Cake\I18n\FrozenDate) {}, 'posturl' => 'dropping-russia-from-swift', 'image' => 'https://www.mediafire.com/file/cozmaq074s7jgaa/4_%25285%2529.jpg', 'fbimage' => 'https://www.mediafire.com/file/cozmaq074s7jgaa/4_%25285%2529.jpg', 'metatitle' => 'Dropping Russia from SWIFT and Response of SWIFT', 'metakeyword' => 'Dropping Russia from SWIFT and Response of SWIFT', 'metadescription' => 'It is not the first time SWIFT has been at the centre of controversy. Earlier in 2012 and 2018 it was barred from providing payment service to Iran aftermath', 'author' => null, 'downlaodpdf' => 'https://www.mediafire.com/file/80zn0skynjnfvmr/4._Dropping_Russia_from_SWIFT.pdf/file', '[new]' => false, '[accessible]' => [ [maximum depth reached] ], '[dirty]' => [[maximum depth reached]], '[original]' => [[maximum depth reached]], '[virtual]' => [[maximum depth reached]], '[errors]' => [[maximum depth reached]], '[invalid]' => [[maximum depth reached]], '[repository]' => 'currentaffairs' }, (int) 43 => object(Cake\ORM\Entity) { 'tag' => 'World Economy', 'keyword' => 'world-economy', 'id' => (int) 10120, 'title' => 'US to ease curbs on Iran and Venezuela to boost oil supply', 'description' => '<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Issue</strong></span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">To counter sharp increase in crude oil prices due to sanctions on Russia, the US is planning to ease curbs on Venezuela and Iran.</span></span></p> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Background</strong></span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Following Russia’s invasion of Ukraine, the US and its allies in Europe have imposed sanctions on Russia and its industries.</span></span></p> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Details</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Russia is the third biggest producer of crude oil behind United States and Saudi Arabia. It is the second largest exporter of the commodity.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">If Russian oil is removed from global oil supply chains, there would not be a replacement. It could result in spiraling of crude prices.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Responses from allies</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">European allies, including Germany, have indicated that there would not be wider sanctions on Russian crude oil due to shortages.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The United Kingdom has also refused to sanction Russian crude but has instead announced that it would phase out purchases by the end of 2022.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Buyers are however fearful of reputational damage caused by engaging with Russia. There is also an issue of payment process due to ban on SWIFT.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Plan of increasing oil from Venezuela and Iran</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Iran and US are in the midst of reviving 2015 Iran nuclear deal. It will put a hold on nuclear programme in exchange for relaxations in economic sanctions, including oil export.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The talks have stalled following Russia’s demand for status quo of economic ties with Iran notwithstanding the sanctions.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Lifting sanctions will allow Iran to increase its crude oil production from 1.5 million barrels per day to 4 million barrels per day over a few months.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Venezuela has also indicated that it is looking forward to ramp up its crude oil production if sanctions on it are lifted.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>India’s response</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">India has supported the move to lift restrictions on Venezuela and Iran as it would help control price of crude in the market.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Considering it imports 85% of its needs, the price of crude oil will have large impact on domestic economy.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Significance</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The move signals that US is ready to work for the best interests of other countries by keeping its own issues apart.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The US has seen domestic inflation hit 7% and it would not want it to climb further due to increase in prices of fuel.</span></span></p> </li> <li> <p><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">The move would signal the market to cool down following assurance of supply of crude oil to fulfill demands of the clients.</span></span></p> </li> </ul> ', 'created_date' => object(Cake\I18n\FrozenDate) {}, 'posturl' => 'us-curbs-iran-venezuela-boost-oil-supply', 'image' => 'https://www.mediafire.com/file/qm462c8ugofbpii/2_%25281%2529.jpg', 'fbimage' => 'https://www.mediafire.com/file/qm462c8ugofbpii/2_%25281%2529.jpg', 'metatitle' => 'US to ease curbs on Iran and Venezuela to boost oil supply', 'metakeyword' => 'US to ease curbs on Iran and Venezuela to boost oil supply', 'metadescription' => 'To counter sharp increase in crude oil prices due to sanctions on Russia, the US is planning to ease curbs on Venezuela and Iran.', 'author' => null, 'downlaodpdf' => 'https://www.mediafire.com/file/4a0es3roch5htkd/2._US_to_ease_curbs_on_Iran_and_Venezuela_to_boost_oil_supply.pdf/file', '[new]' => false, '[accessible]' => [ [maximum depth reached] ], '[dirty]' => [[maximum depth reached]], '[original]' => [[maximum depth reached]], '[virtual]' => [[maximum depth reached]], '[errors]' => [[maximum depth reached]], '[invalid]' => [[maximum depth reached]], '[repository]' => 'currentaffairs' }, (int) 44 => object(Cake\ORM\Entity) { 'tag' => 'World Economy', 'keyword' => 'world-economy', 'id' => (int) 10128, 'title' => 'Breadbasket region', 'description' => '<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Issue</strong></span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The war in Ukraine is threatening food security of the world, especially due to shortage of wheat.</span></span></p> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Background</strong></span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The global food supply chain is highly dependent on cheap wheat being exported from Ukraine as well as Russia.</span></span></p> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Details</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The Black Sea region in Europe is known as the breadbasket of the world for large wheat farms.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Many countries of Europe, Africa and Asia rely on the vast, fertile farmlands for their food supply.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Reasons for shortage</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Ukrainian farmers are forced to flee their farms due to fear of lives. Many of them have joined Ukrainian army to fight Russian forces.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Ukrainian ports that export wheat to other parts of the world have been shut due to Russian attacks.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Russian wheat exports are also impacted due to sanctions imposed by western bloc against trade.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Implications</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The prices of wheat have risen by 55% since the start of the war. Countries relying on affordable prices from Ukraine will be severely hit.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Ukraine has already banned export of wheat, buckwheat, corn, oats and cattle for domestic use.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Countries dominated by bread diet like middle-east will face severe shortages due to war. Many of the citizens in these countries survive on subsidized breads.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The prices of farm feed made out of wheat have been increased. This will cause rise in price of dairy and meat.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Farming in Ukraine</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Russia and Ukraine account for almost 30 percent of global wheat exports, almost 20 percent of corn exports, and more than 80 percent of the world supply of sunflower oil. </span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Ukraine forms a major part of global wheat and barley growing regions. It is a major supplier of corn and the global leader in sunflower oil.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Impact on India</strong></span></span></p> <p><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">India is one of the largest importers of sunflower oil. Shortages of supply could raise the already high price of cooking oil.</span></span></p> ', 'created_date' => object(Cake\I18n\FrozenDate) {}, 'posturl' => 'breadbasket-region', 'image' => 'https://www.mediafire.com/file/ddsm2lpqgusdufh/1.jpg', 'fbimage' => 'https://www.mediafire.com/file/ddsm2lpqgusdufh/1.jpg', 'metatitle' => 'Breadbasket region and Reasons for shortage', 'metakeyword' => 'Breadbasket region and Reasons for shortage', 'metadescription' => 'The global food supply chain is highly dependent on cheap wheat being exported from Ukraine as well as Russia.', 'author' => null, 'downlaodpdf' => 'https://www.mediafire.com/file/v35xulla3xqk5ro/1._Breadbasket_region.pdf/file', '[new]' => false, '[accessible]' => [ [maximum depth reached] ], '[dirty]' => [[maximum depth reached]], '[original]' => [[maximum depth reached]], '[virtual]' => [[maximum depth reached]], '[errors]' => [[maximum depth reached]], '[invalid]' => [[maximum depth reached]], '[repository]' => 'currentaffairs' }, (int) 45 => object(Cake\ORM\Entity) { 'tag' => 'World Economy', 'keyword' => 'world-economy', 'id' => (int) 10130, 'title' => 'Most Favoured Nation status', 'description' => '<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Issue</strong></span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Russia’s “most favoured nation” (MFN) status will be revoked by the United States, the European Union, Britain, Canada and Japan.</span></span></p> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Background</strong></span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The Russian invasion of Ukraine has attracted ire of western bloc and their allies, who are targeting Russia economically.</span></span></p> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Details</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">It is a commitment of a country to treat other countries equally so they can all benefit from each other’s lowest tariffs, highest import quotas and fewest trade barriers for goods and services.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">This principle of non-discrimination provided by the 164 members of World Trade Organisation is known as most favoured nation (MFN) treatment. </span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Exceptions to MFN include bilateral trade agreements between countries and members offering developing countries special access to their markets.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">WTO members can impose trade measures without breaking rules on countries outside WTO such as Iran, North Korea, Syria and Belarus.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Revoking MFN status</strong></span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">A formal procedure is not present for revoking MFN status, or whether WTO has to be informed. India had revoked MFN status of Pakistan after Pulwama attack.</span></span></p> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Effects of losing MFN status</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">It means that western countries do not consider Russia an economic partner in any way. It is a signal sent to express their position. It does not affect trade conditions.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">These countries can impose quota or higher tariffs on Russian goods. They can also completely ban them and restrict services. Russian IPR can also be overlooked.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The US has already banned Russian gas and oil. Canada also revoked MFN status of Russia and its ally Belarus.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Products being banned</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">European Union has banned import such as tobacco, potash and products made of wood or steel from Belarus.</span></span></p> </li> <li> <p><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">Russian imports like mineral fuels, precious metals and stones, iron and steel, fertilizers and inorganic chemicals could also be banned in future.</span></span></p> </li> </ul> ', 'created_date' => object(Cake\I18n\FrozenDate) {}, 'posturl' => 'most-favoured-nation-status', 'image' => 'https://www.mediafire.com/file/mph2rg9mdwkeo3t/3.jpg', 'fbimage' => 'https://www.mediafire.com/file/mph2rg9mdwkeo3t/3.jpg', 'metatitle' => 'Most Favoured Nation status and Effects of losing MFN status', 'metakeyword' => 'Most Favoured Nation status and Effects of losing MFN status', 'metadescription' => 'Russia’s “most favoured nation” (MFN) status will be revoked by the United States, the European Union, Britain, Canada and Japan.', 'author' => null, 'downlaodpdf' => 'https://www.mediafire.com/file/k15li29ejkuzzji/3._Most_Favoured_Nation_status.pdf/file', '[new]' => false, '[accessible]' => [ [maximum depth reached] ], '[dirty]' => [[maximum depth reached]], '[original]' => [[maximum depth reached]], '[virtual]' => [[maximum depth reached]], '[errors]' => [[maximum depth reached]], '[invalid]' => [[maximum depth reached]], '[repository]' => 'currentaffairs' }, (int) 46 => object(Cake\ORM\Entity) { 'tag' => 'World Economy', 'keyword' => 'world-economy', 'id' => (int) 10155, 'title' => 'Discounted Russian oil', 'description' => '<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Issue</strong></span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The US Senate has said that India taking up Russia’s offer of discounted crude oil would not be a violation of American sanctions.</span></span></p> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Background</strong></span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The US has imposed stringent economic sanctions on Russia, including a ban on import of Russian oil and gas.</span></span></p> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Details</strong></span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Currently, India has bought 3 million barrels of Urals crude oil at the discounted price. Discount would be up to $20-$25 per barrel on dated Brent.</span></span></p> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Offer by Russia</strong></span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Apart from discounts offered, Russia will also cover cost involved in shipments and also insurance of the commodity till it reaches Indian coast.</span></span></p> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Benefits</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Diversifying oil import sources will help in reducing the financial burden on the government. It may cool off inflationary pressures.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The move will also ensure that bilateral relations with Russia remains strong as a result of India’s trade despite international pressure.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Reasons for discount</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Discount is a way by Russian oil companies to hold onto customers and increase sales amid crippling business and trade.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">It also wants to keep its relations with friendly nations intact by offering them discounts on imported oil.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Signal</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The move by India to buy Russian oil is a signal that it wants to keep its key trading partner on board despite Western sanctions.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">India is planning to make use of this opportunity to buy cheaper commodities such as fertilizer from Russia and Belarus.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Oil source </strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Russia is the third largest producer of crude oil and the second largest importer of the commodity.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Many countries in Europe are heavily dependent on Russia for their energy needs. India currently buys only 1.3 per cent of all its oil needs from Russia.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>India’s oil suppliers</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Currently, Iraq is the largest crude oil supplier for India, followed by United States and Nigeria.</span></span></p> </li> <li> <p><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">Saudi Arabia slipped to the fourth position while United Arab Emirates went down to the fifth position of suppliers.</span></span></p> </li> </ul> ', 'created_date' => object(Cake\I18n\FrozenDate) {}, 'posturl' => 'discounted-russian-oil', 'image' => 'https://www.mediafire.com/file/pdsmfghbzouirgg/1_%25282%2529.jpg', 'fbimage' => 'https://www.mediafire.com/file/pdsmfghbzouirgg/1_%25282%2529.jpg', 'metatitle' => 'Discounted Russian oil and Reasons for discount', 'metakeyword' => 'Discounted Russian oil and Reasons for discount', 'metadescription' => 'The US Senate has said that India taking up Russia’s offer of discounted crude oil would not be a violation of American sanctions.', 'author' => null, 'downlaodpdf' => 'https://www.mediafire.com/file/u27e1mm71c719sc/1._Discounted_Russian_oil.pdf/file', '[new]' => false, '[accessible]' => [ [maximum depth reached] ], '[dirty]' => [[maximum depth reached]], '[original]' => [[maximum depth reached]], '[virtual]' => [[maximum depth reached]], '[errors]' => [[maximum depth reached]], '[invalid]' => [[maximum depth reached]], '[repository]' => 'currentaffairs' }, (int) 47 => object(Cake\ORM\Entity) { 'tag' => 'World Economy', 'keyword' => 'world-economy', 'id' => (int) 10182, 'title' => 'Russia’s external debt payments', 'description' => '<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Issue</strong></span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Russia is due to make a dollar-denominated payment to bondholders, which may be uncertain due to the unprecedented sanctions.</span></span></p> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Background</strong></span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">This will be the first time since the 1998 financial crisis that Russia has defaulted on a bond payment.</span></span></p> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Details</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">This is also the first time after the 1917 Bolshevik revolution that a default in taking place on international bonds.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Russia is due to pay $4.7 billion by the year-end apart from the $66 million that was to be paid by Monday.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>The situation</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Russia has a grace period of 30 days to pay $117 million on bonds issues in 2013. Russia was initially reluctant to send foreign currency as payment.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">A temporary respite was given to JPMorgan, which processed the cash and deposited it to Citigroup for giving it to bondholders.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Foreign investors hold $38 billion-worth of rouble-denominated sovereign bonds known as OFZs before this crisis, some of which have been due.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Russia has an option of alternative payments in other currencies, which needs a notice period of 15 days.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Future payment situation</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">There are temporary license provided for the receipt of interest, dividend, or maturity payments, which ends on March 25.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Russia still will have to make payments worth $2 billion after expiry. The biggest such test will be in May when license expires.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">For license to continue, a significant de-escalation has to take place from Russia’s side. Otherwise Russia will be forced to service the bonds in Rouble in its onshore accounts. This will be applicable only for Euro bonds and not Dollar bonds.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Implications of default</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">In case Russia defaults on bond payments, it will be locked out of the international borrowing markets until sanctions are lifted.</span></span></p> </li> <li> <p><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">The credit ratings of the country would fall and the interest rates will be pushed up for borrowing by the government and private companies.</span></span></p> </li> </ul> ', 'created_date' => object(Cake\I18n\FrozenDate) {}, 'posturl' => 'russias-external-debt-payments', 'image' => 'https://www.mediafire.com/file/k8hn2pfi6ozj10e/2.jpg', 'fbimage' => 'https://www.mediafire.com/file/k8hn2pfi6ozj10e/2.jpg', 'metatitle' => 'Russia’s external debt payments and Future payment situation', 'metakeyword' => 'Russia’s external debt payments and Future payment situation', 'metadescription' => 'Russia is due to make a dollar-denominated payment to bondholders, which may be uncertain due to the unprecedented sanctions.', 'author' => null, 'downlaodpdf' => 'https://www.mediafire.com/file/xlmuehywsk19o4b/2._Russia%25E2%2580%2599s_external_debt_payments.pdf/file', '[new]' => false, '[accessible]' => [ [maximum depth reached] ], '[dirty]' => [[maximum depth reached]], '[original]' => [[maximum depth reached]], '[virtual]' => [[maximum depth reached]], '[errors]' => [[maximum depth reached]], '[invalid]' => [[maximum depth reached]], '[repository]' => 'currentaffairs' }, (int) 48 => object(Cake\ORM\Entity) { 'tag' => 'World Economy', 'keyword' => 'world-economy', 'id' => (int) 10309, 'title' => 'Europe’s ban on Russian energy', 'description' => '<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Issue</strong></span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The evidences of Bucha massacre has put pressure on European nations to further impose sanctions on oil and energy sectors of Russia.</span></span></p> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Background</strong></span></span></p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Energy imports from Russia amounts to $850 million per day. Sanctions till now have spared oil and gas companies of Russia.</span></span></p> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Details</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Countries in European Union get about 40% of their natural gas supply from Russia, which is used in industries as well as households.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">This number comes down to 25% in terms of crude oil dependency. It majorly goes towards producing petrol and diesel.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Any cut in supply of crude oil will result in rise of diesel prices. This will be catastrophic for transport and farming sector.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>European dependency on Russia</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Europe has very little of its own natural gas and crude oil deposits. The production of these commodities is declining, which has resulted in dependency on imports.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Comparatively, the US has little crude oil imports from Russia and no natural gas supply. The domestic production of US is also higher.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Challenges</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Replacing piped natural gas by LNG is costly and time-consuming. Only some places have the required LNG terminals that can supply to households.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Rest of the continent does not have infrastructure to connect to LNG terminals. LNG prices cannot be as cheap as piped natural gas from Russia.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Alternatives</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">European countries are looking for alternative supply from countries such as Norway as well as Algeria.</span></span></p> </li> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Many countries have already reduced Russian gas contracts. Most of them will be focusing on renewable energy sources to compensate for Russian gas.</span></span></p> </li> </ul> <p style="margin-right:0cm"> </p> <p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Impact of banning Russian energy</strong></span></span></p> <ul> <li> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Prices will likely soar and countries would experience serious shortages. Many industries will be affected.</span></span></p> </li> <li> <p><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">Large number of jobs may be hit and inflation may rise. A country may go towards recession as its revenue may decrease.</span></span></p> </li> </ul> ', 'created_date' => object(Cake\I18n\FrozenDate) {}, 'posturl' => 'europes-ban-russian-energy', 'image' => 'https://www.mediafire.com/file/crhexhuzllo2bra/2_%25285%2529.jpg', 'fbimage' => 'https://www.mediafire.com/file/crhexhuzllo2bra/2_%25285%2529.jpg', 'metatitle' => 'Europe’s ban on Russian energy & Impact of banning Russian energy', 'metakeyword' => 'Europe’s ban on Russian energy & Impact of banning Russian energy', 'metadescription' => 'The evidences of Bucha massacre has put pressure on European nations to further impose sanctions on oil and energy sectors of Russia.', 'author' => null, 'downlaodpdf' => 'https://www.mediafire.com/file/0j9rercgb3uqpvy/2._Europe%25E2%2580%2599s_ban_on_Russian_energy.pdf/file', '[new]' => false, '[accessible]' => [ [maximum depth reached] ], '[dirty]' => [[maximum depth reached]], '[original]' => [[maximum depth reached]], '[virtual]' => [[maximum depth reached]], '[errors]' => [[maximum depth reached]], '[invalid]' => [[maximum depth reached]], '[repository]' => 'currentaffairs' }, (int) 49 => object(Cake\ORM\Entity) { 'tag' => 'World Economy', 'keyword' => 'world-economy', 'id' => (int) 10372, 'title' => 'High US inflation', 'description' => '<p><strong>Issue</strong></p> <p>Consumer prices in the United States have rocketed to 8.5% in the month of March in this financial year.</p> <p> </p> <p><strong>Background</strong></p> <p>The highest such rise was 7.9% that was witnessed in February, which itself was highest in the past 40 years.</p> <p> </p> <p><strong>Details</strong></p> <p>The core inflation has seen rise to 6.5% in the last 12 months. The volatile food and energy prices push the rate even higher.</p> <p>The growth is even higher than US Fed’s anticipation, which had predicted in 2020 that consumer inflation would stay below their 2% annual target and end 2021 at around 1.8%.</p> <p> </p> <p><strong>Observations</strong></p> <p>Policy makers argued earlier that the higher inflationary rates were transitory due to shipping delays and temporary shortages of supplies after the pandemic.</p> <p>The recent trend shows that inflation seems to stay for the upcoming days as demand has outstripped supply.</p> <p> </p> <p><strong>Actions</strong></p> <p>The US Fed was forced to raise benchmark short-term rate by a quarter-point and will probably keep increasing.</p> <p>It will seek to reverse the liquidity in the market that had helped revive the economy but also fuelled high inflation.</p> <p>The main intention would be to rein in inflation without weakening it so much as to trigger a recession. </p> <p> </p> <p><strong>Start</strong> <strong>of</strong> <strong>crisis</strong></p> <p>Following the paralysis of economy due to pandemic, the government and US Fed intervened to revive. Funds were infused and rates were slashed.</p> <p>Businesses started to bloom and the demand outpaced supply as supply-chains failed to reinstate on time.</p> <p>Cost of products began to rise and companies passed along the higher prices to customers in order to reduce their burden.</p> <p>Critics argue that President Biden’s $1.9 trillion Coronavirus relief package for overheating the economy. The US Fed rates of near zero were also criticized.</p> <p> </p> <p><strong>Way</strong> <strong>forward</strong></p> <p>Higher inflation is eroding purchasing power of consumers and many of them have stopped spending to save.</p> <p>The US Fed has indicated that easy money policy will be curtailed to prevent people from borrowing or spending.</p> ', 'created_date' => object(Cake\I18n\FrozenDate) {}, 'posturl' => 'high-us-inflation', 'image' => 'https://www.mediafire.com/file/c1sunlk84u1hdbt/3.jpg', 'fbimage' => 'https://www.mediafire.com/file/c1sunlk84u1hdbt/3.jpg', 'metatitle' => 'High US inflation and Start of crisis', 'metakeyword' => 'High US inflation and Start of crisis', 'metadescription' => 'The highest such rise was 7.9% that was witnessed in February, which itself was highest in the past 40 years.', 'author' => null, 'downlaodpdf' => 'https://www.mediafire.com/file/mj7ee0xxxpee6zt/3._High_US_inflation.pdf/file', '[new]' => false, '[accessible]' => [ [maximum depth reached] ], '[dirty]' => [[maximum depth reached]], '[original]' => [[maximum depth reached]], '[virtual]' => [[maximum depth reached]], '[errors]' => [[maximum depth reached]], '[invalid]' => [[maximum depth reached]], '[repository]' => 'currentaffairs' } ] $tagname = 'World Economy' $metadescription = 'World Economy, World Economy Current Affairs, Today News, GK, World Economy history, World Economy Current Affairs and more World Economy current affairs news' $metakeyword = 'World Economy, World Economy Current Affairs, Today News, GK, World Economy history, World Economy Current Affairs' $title = 'World Economy | World Economy Current Affairs, Today News, GK' $sbanners = [ (int) 0 => object(Cake\ORM\Entity) { 'id' => (int) 61, 'bannername' => 'http://www.mediafire.com/convkey/5f54/lodkrbkhwk5lg1q6g.jpg', 'bannerlink' => 'https://www.studyiq.com/course-detail/ssc-bank-combo', 'isright' => (int) 0, 'status' => (int) 1, '[new]' => false, '[accessible]' => [ [maximum depth reached] ], '[dirty]' => [[maximum depth reached]], '[original]' => [[maximum depth reached]], '[virtual]' => [[maximum depth reached]], '[errors]' => [[maximum depth reached]], '[invalid]' => [[maximum depth reached]], '[repository]' => 'sitebanners' }, (int) 1 => object(Cake\ORM\Entity) { 'id' => (int) 62, 'bannername' => 'http://www.mediafire.com/convkey/0552/k9b1o467l8edtbc6g.jpg', 'bannerlink' => 'https://studyiq.com/courses/state-exams', 'isright' => (int) 0, 'status' => (int) 1, '[new]' => false, '[accessible]' => [ [maximum depth reached] ], '[dirty]' => [[maximum depth reached]], '[original]' => [[maximum depth reached]], '[virtual]' => [[maximum depth reached]], '[errors]' => [[maximum depth reached]], '[invalid]' => [[maximum depth reached]], '[repository]' => 'sitebanners' }, (int) 2 => object(Cake\ORM\Entity) { 'id' => (int) 63, 'bannername' => 'http://www.mediafire.com/convkey/154a/6y1qvv7v118759h6g.jpg', 'bannerlink' => 'https://www.studyiq.com/course-detail/upsc-ias-pre-mains', 'isright' => (int) 0, 'status' => (int) 1, '[new]' => false, '[accessible]' => [ [maximum depth reached] ], '[dirty]' => [[maximum depth reached]], '[original]' => [[maximum depth reached]], '[virtual]' => [[maximum depth reached]], '[errors]' => [[maximum depth reached]], '[invalid]' => [[maximum depth reached]], '[repository]' => 'sitebanners' }, (int) 3 => object(Cake\ORM\Entity) { 'id' => (int) 64, 'bannername' => 'http://www.mediafire.com/convkey/563c/o65x6jso51flz886g.jpg', 'bannerlink' => 'https://studyiq.com/courses/upsc/optional-subjects', 'isright' => (int) 0, 'status' => (int) 1, '[new]' => false, '[accessible]' => [ [maximum depth reached] ], '[dirty]' => [[maximum depth reached]], '[original]' => [[maximum depth reached]], '[virtual]' => [[maximum depth reached]], '[errors]' => [[maximum depth reached]], '[invalid]' => [[maximum depth reached]], '[repository]' => 'sitebanners' } ] $params = [ (int) 0 => 'world-economy' ] $b = [ 'name' => 'World Economy', 'link' => 'https://currentaffairs.studyiq.com/tags/world-economy' ] $currentaffair = object(Cake\ORM\Entity) { 'tag' => 'World Economy', 'keyword' => 'world-economy', 'id' => (int) 10372, 'title' => 'High US inflation', 'description' => '<p><strong>Issue</strong></p> <p>Consumer prices in the United States have rocketed to 8.5% in the month of March in this financial year.</p> <p> </p> <p><strong>Background</strong></p> <p>The highest such rise was 7.9% that was witnessed in February, which itself was highest in the past 40 years.</p> <p> </p> <p><strong>Details</strong></p> <p>The core inflation has seen rise to 6.5% in the last 12 months. The volatile food and energy prices push the rate even higher.</p> <p>The growth is even higher than US Fed’s anticipation, which had predicted in 2020 that consumer inflation would stay below their 2% annual target and end 2021 at around 1.8%.</p> <p> </p> <p><strong>Observations</strong></p> <p>Policy makers argued earlier that the higher inflationary rates were transitory due to shipping delays and temporary shortages of supplies after the pandemic.</p> <p>The recent trend shows that inflation seems to stay for the upcoming days as demand has outstripped supply.</p> <p> </p> <p><strong>Actions</strong></p> <p>The US Fed was forced to raise benchmark short-term rate by a quarter-point and will probably keep increasing.</p> <p>It will seek to reverse the liquidity in the market that had helped revive the economy but also fuelled high inflation.</p> <p>The main intention would be to rein in inflation without weakening it so much as to trigger a recession. </p> <p> </p> <p><strong>Start</strong> <strong>of</strong> <strong>crisis</strong></p> <p>Following the paralysis of economy due to pandemic, the government and US Fed intervened to revive. Funds were infused and rates were slashed.</p> <p>Businesses started to bloom and the demand outpaced supply as supply-chains failed to reinstate on time.</p> <p>Cost of products began to rise and companies passed along the higher prices to customers in order to reduce their burden.</p> <p>Critics argue that President Biden’s $1.9 trillion Coronavirus relief package for overheating the economy. 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