Current Affairs 23rd Janunary

National Affairs

1. Under the EPCG scheme, the hotel, health, and education sectors will have their export obligations reduced.

Under the Export Promotion Capital Goods (EPCG) scheme, on January 20, 2023, the Central Government relaxed the hotel, healthcare, and educational sectors’ export obligations.

 

The Cause of This Relaxation:

 

To assist the aforementioned industries in coping with the negative effects of the COVID-19 pandemic on their exports.

 

What does it mean to unwind?

 

These industries will not be required to maintain an average export obligation for EPCG authorizations granted to them in the years 2020–21 and 2021–22. Additionally, they will be able to extend the export obligation period without incurring any additional costs.

 

From the date of expiration, the export period would be extended for the same amount of time as the number of days in the export obligation period between February 1, 2020 and March 31, 2022.

 

Composition fees will not be required to obtain this extension.

 

Key Points:

 

The export obligation period for EPCG authorizations issued for industries other than hotel, healthcare, and education may be extended by the number of days between February 1, 2020, and July 31, 2021.

 

This extension will be granted without the payment of composition fees, but the balance export obligation as of March 31, 2022, will have an additional export obligation of 5% in terms of value.

 

About the EPCG plan:

 

The EPCG scheme is a trade promotion scheme implemented by the Central Government that enables duty-free importation of capital goods for the purpose of export production in India. It is administered by the Directorate General of Foreign Trade (DGFT) and governed by the Foreign Trade Policy (FTP) of India.

 

By reducing import duties on capital goods, it aims to encourage the production of goods for export.

2. The Ministry of Consumer Affairs issues new Social Media Influencer Guidelines.

 

The Ministry of Consumer Affairs published guidelines titled “Endorsements Know-hows!” on January 20, 2023. for social media influencers, such as celebrities and virtual avatars, for revealing the promotional content of the products or services they endorse as well as their actual connections to those products or services.

 

Financial benefits, hotel stays, awards, employment relationships, sweepstakes entries, and media bartering are all examples of material connections with a brand.

 

During a press conference in New Delhi, Union Consumer Affairs Secretary Rohit Kumar Singh provided a briefing on the guidelines. The following is the rationale for this guideline:

The use of social media for promotional activities has increased. Therefore, these guidelines have been developed in accordance with the Consumer Protection Act of 2019 in order to ensure that influencers do not deceive their audiences and prevent unfair business practices.

 

The Advertising Standards Council of India (ASCI)’s guidelines are also in line with these.

 

Infractions to the Rules:

 

The Consumer Protection Act of 2019’s penalty for misleading advertisements will apply in the event of any violations.

 

Manufacturers, advertisers, and endorsers can be fined up to Rs 10 lakh by the Central Consumer Protection Authority (CCPA), and for repeat offences, a fine of up to Rs 50 lakh can be imposed.

 

The CCPA also has the power to forbid the endorser of a misleading advertisement from giving any endorsement for a period of up to one year, and if they break the law again, they can be banned for up to three years.

They could spend six months in prison, which could be extended to two years.

 

Key Points:

 

The disclosures ought to be brief enough to be “hard to miss” written in straightforward language. 

 

Short hashtags like “ad,” “sponsored,” and “paid” are acceptable on platforms with limited space, like Twitter.

 

In live streams, disclosures ought to be prominently and continuously displayed, and they ought to be in the same language as endorsements.

 

Disclosures should be placed in the video and not just in the description for picture endorsements, but they should be superimposed on the image in a way that makes them visible to viewers. It ought to be available in video and audio formats.

 

The social media influencer market in India was worth Rs 1,275 crore in 2022, and by 2025, it was likely to be worth Rs 2,800 crore, with a CAGR of 19-20 per cent.

3. In Chennai, Tennessee, AIF opens India’s first STEM Innovation and Learning Center; DSLV Mission was launched by AIF’s DE.

 

At the Government Higher Secondary School in MMDA Colony in Chennai, Tamil Nadu (TN), the American India Foundation (AIF) launched the Drone and Satellite Launch Vehicle (DSLV) Mission and opened India’s first STEM Innovation and Learning Centre (SILC) under the Vanavil Mandram scheme.

 

The Minister for School Education of the TN Government, Anbil Mahesh Poyyamozhi, attended the inauguration virtually.

 

Dr Mylswamy Annadurai, the Moon Man of India, former Director of the Indian Space Research Organization (ISRO), and Vice President of the State Council for Science and Technology, Tennessee, received the Padma Shri Award in 2016 for both mentoring and initiating the DSLV Mission.

 

The first of four Centers to open in Tamil Nadu over the next two months is this SILC.

 

Others of Note:

 

Mathew Joseph, Country Director of AIF; D. Baskaran, Head of Innovation & Technology and Regional Manager – South of AIF; and S. Mars, Chief Educational Officer of Chennai District

 

In Chennai, India, the STEM Innovation and Learning Centre (SILC):

 

Digital Equalizer (DE), AIF’s award-winning flagship education program, designed SILC.

 

It is made to be a one-stop shop for students and teachers looking for STEM (Science, Technology, Engineering, and Mathematics) resources.

 

Through the use of robotics, artificial intelligence (AI), space technology, and the STEM Incubation workstation, SICL introduces students to a transdisciplinary learning approach.

The purpose of SICl is to pique students’ interest in advanced STEM courses.

 

It has a Technology Corner for Teachers with a smart lab. This will make it easier for teachers to lead technology-enabled classes for their students and get training in the DE Way of Teaching (DEWoT). DEWoT is a unique approach developed by AIF to address all kinds of students in the classroom.

 

The centre also has a studio setup for making DE Edu reels of high quality.

 

The mission of the Drone and Satellite Launch Vehicle (DSLV):

 

Through DE’s TLM (Technical License Management), DSLV Mission aims to establish a platform for students to learn about drone and aviation technology.

 

In preparation for the mission launch, more than 200 selected students from 12 schools in Chennai, Tennessee, were trained to assemble a drone and a PICO satellite and launch their models immediately.

4. In Amritapuri, Kerala, the Civil 20 Engagement Group of India was launched.

 

The official engagement group of India’s G20 (Group of 20) leadership, India’s Civil 20 Engagement Group (C20), was inaugurated at Amritapuri in Kollam, Kerala, to represent the voices of voluntary, non-profit citizens’ groups serving society.

 

Key People:

 

The event was virtually attended by G20 and C20 officials, government officials, and other dignitaries.

 

Participants included Sri Mata Amritanandamayi (Amma), chair of the C20, Amitabh Kant, former CEO of NITI Aayog (National Institution for Transforming India), Shashi Tharoor, Union Minister of Youth Affairs & Sports Anurag Singh Thakur, V Muraleedharan, Union Minister of State (MoS) for External Affairs, RN Ravi, Governor of Tamil Nadu, and V Sivankutty, Public Education Minister of Kerala.

 

Regarding C20

 

Purpose: to bring the concerns of CSOs from all over the world to the G20 Summit, which is scheduled to take place in September 2023 in New Delhi, Delhi.

 

Members: Participant: Sri M, founder of the Satsang Foundation; As Secretary, Rambhau Mhalgi Prabodhini; and Kanyakumari’s Vivekananda Kendra as an Institutional Partner.

 

Key Points:

 

With the goal of ensuring that no one is left behind, C20 will collaborate with hundreds of civil society organizations (CSOs) from all over the world to raise fundamental issues of common concern and promote sustainable development.

 

The following are some of the event’s highlights:

 

Mata Amritanandamayi started a Rs 50 million project at the event to help malnourished pregnant women and disabled people in underdeveloped districts in India and other developing countries.

 

Together with local CSOs, Mata Amritanandamayi Math (MAM) will oversee the project.

 

5. Internal Kalyani Group reorganization is approved by CCI.

 

The Kalyani Group’s internal recognition was approved by the Competition Commission of India (CCI) on January 19, 2023. The automated approval scheme known as the green channel route ensured that the transaction was approved.

 

After notifying the fair trade authority, a transaction is considered permissible under this framework if there is no significant threat to competition.

 

Under a plan of amalgamation and arrangement entered into between these entities, the current transaction involves the internal reorganization of nine Kalyani Group entities.

 

The Kalyani Group’s corporate ownership structure can be streamlined by pursuing the proposed combination.

 

International Affairs

1. UN Institutions: 30 million children face the threat of acute malnutrition.

 

In an effort to accelerate the enactment of timely and decisive measures to safeguard the most vulnerable children in the 15 countries heavily impacted by the unprecedented food and nutrition crisis, the agencies of the United Nations (UN) issued a call to action for the “UN Global Action Plan on Child Wasting.”

 

In the 15 countries with the highest rates of acute malnutrition, more than 30 million children are affected by wasting. Eight million of these children suffer from severe wasting, the most serious complication of malnutrition.

 

40 million children under the age of five live in severe food poverty and 27 million children experience severe food insecurity in the 15 countries that have been affected the most.

UN Global Plan of Action Against Child Abuse The Food and Agriculture Organization (FAO), the United Nations High Commissioner for Refugees (UNHCR), the United Nations Children’s Fund (UNICEF), the World Food Programme (WFP), and the World Health Organization (WHO) are all working together on the Global Action Plan on Child Wasting.

 

The goal of the action plan is to treat, prevent, and detect acute malnutrition in children in the 15 countries most affected: Chad, Ethiopia, the Democratic Republic of the Congo, Afghanistan, Burkina Faso, the Democratic Republic of the Congo, Haiti, Kenya, Madagascar, Mali, Niger, Nigeria, Somalia, South Sudan, Sudan, and Yemen

Through the food, health, water, sanitation, and social protection systems, it emphasizes the significance of a multi-sectoral approach to maternal and child nutrition.

 

Important Terminologies: 

 

Acute malnutrition, also known as wasting, is a type of undernutrition characterized by rapid weight loss or oedema brought on by a reduction in food intake or illness.

 

The weight of children with acute malnutrition is low for their height. The most dangerous type of malnutrition for children is wasting.

 

The most fatal form is severe wasting, with children with severe wasting 12 times more likely to die than healthy children.

2. ICGS Rajveer and Shaurya travel to Bangladesh for six days.

 

As part of the close cooperation between the Indian Coast Guard and the Bangladesh Coast Guard (BCG), two Indian Coast Guard vessels—ICGS Shaurya and ICGS Rajveer—sailed to Chittagong, Bangladesh, on January 13, 2023, for a six-day visit (January 13 to January 19).

 

In accordance with the terms of the Memorandum of Understanding (MoU) signed by ICG and BCG, the visit aims to improve cooperative engagements and interoperability.

The ICGS Rajveer and Shaurya, two cutting-edge indigenously built ICGS, made their visit an important part of the India-Bangladesh Defense Partnership.

 

Shaurya, ICGS:

 

Goa Shipyard Limited designed and constructed the Advanced Offshore Patrol Vessel (AOPV) ICGS Shaurya.

 

It has long-range endurance and can operate both Chetak and Advance Light Helicopters (ALH).

 

Rajveer, ICGS:

 

The Inshore Patrol Vessel (IPV) ICGS Rajveer was designed and constructed by Garden Reach Shipbuilders in Kolkata, West Bengal.

 

Search and rescue, maritime law enforcement, and marine pollution response operations all benefit from the ship’s sophisticated navigation and communication machinery.

 

Highlights:

 

For the first time in Bangladesh, the Pollution Response Team of ICG taught 20 BCG personnel a five-day International Maritime Organization Level I course on pollution response during the six-day visit. Onboard ICGS Rajveer and Shaurya, they also received instructions on how to operate PR equipment.

 

At the conclusion of the visit, a joint exercise was held on the BCG ships to verify the established Standard Operating Procedures (SOPs) for Search and Rescue and environmental protection.

 

30 students from the Chittagong-based Bangladesh Navy School and College were also accommodated on the two ships.

 

In a meeting with Rear Admiral Nazmul Hassan, Commander of the Chittagong Naval Area, the commanding officers of ICGS Shaurya and Rajveer discussed matters of mutual interest regarding maritime security and defence cooperation.

Banking and Finance

1. RBI data: In November 2022, Indians contributed nearly $2 billion to the LRS scheme.

 

In accordance with the most recent data on “Outward Remittances under the Liberalised Remittance Scheme (LRS) for Resident Individuals” provided by the Reserve Bank of India (RBI), Indians sent approximately $1.99 billion abroad in accordance with the LRS in November 2022.

 

In November 2021, LRS outward remittances increased 29% to USD 1.99 billion from USD 1.54 billion.

 

Under LRS, the outward remittances increased sequentially by approximately 3.5%.

The information was made public in the RBI Bulletin in January 2023.

 

LRS (Liberalized Remittance Scheme): 

 

In 2004, the RBI launched the Liberalized Remittance Scheme (LRS), which had an initial cap of USD 25,000.

 

In order to keep up with the current state of both macro and microeconomics, the LRS limit has undergone gradual revision.

 

For any permitted current or capital account transaction, or combination of both, the program allows all residents, including minors, to freely remit up to USD 250,000 each fiscal year.

 

Under the LRS, Outward Remittances for Residents i. To date (through November 2022) in the fiscal year 2022-23 (FY23), Indians have sent approximately USD 17.28 billion in outward remittances under the LRS, according to RBI data.

 

By the end of FY23, outflows may have reached a record high, accompanied by an increase in international travel.

 

In FY22, outflows of USD 19.61 billion reached an all-time high, driven by international travel and education abroad.

 

Under the LRS, India’s remittances were USD 12.68 billion in FY21, down 32.38 percent from USD 18.76 billion in FY20.

 

As COVID-19 pandemic-related restrictions impacted international travel for a longer period of time, outward remittances suffered setbacks in FY21.

 

Important Facts:

 

International travel accounted for more than half of all Indians’ outward remittances in November 2022 under the LRS.

 

As of November 2021, outbound remittances for international travel totalled $1.03 billion, a 2.25-fold increase.

 

Indians spent the most on maintaining close family members, followed by gifts and international education.

 

In November 2022, USD 305.35 million was sent abroad to pay for the care of family members.

 

Gifts totalling 220.90 million dollars followed, with 211.65 million dollars going to overseas education.

2. Fundraising for new businesses to rise quickly: RBI Report

According to a paper published in the January 2023 bulletin of the Reserve Bank of India (RBI) titled “What Drives Startup Fundraising in India,” start-up fundraising in India is anticipated to quickly recover from the macroeconomic disturbances that have occurred over the past two to three years.

 

Rajas Saroy, Ashish Khobragade, Rekha Misra, Sakshi Awasthy, and Sarat Dhal wrote the paper.

 

Key Points:

 

According to the paper, their rapid integration into global finance and supply chains may raise concerns about macroeconomic and financial stability.

 

The National Investment Promotion and Facilitation Agency’s data show that as of September 2022, there were 107 unicorns with a total value of $341 billion.

 

The three Indian cities with the most unicorns are Mumbai (Maharashtra), Bengaluru (Karnataka), and Gurugram (Haryana).

 

Management control shifts brought about by foreign financial flows must be monitored.

 

The onshoring of such investments will be made easier with the establishment of International Financial Services Centres.

3. RBI Bulletin for January 2023: By 2024, the RBI will direct inflation toward a target of 4%.

The Reserve Bank of India (RBI)’s monetary policy objective for 2023 is to keep inflation within the required tolerance band (2%–6%) and lead it toward the medium-term target of 4% by 2024, which is the second milestone, according to the article titled “State of the Economy” in the “January 2023 bulletin.”

Inflation is now within the tolerance range, marking the first monetary policy milestone.

 

Key Points:

 

Retail inflation, as measured by Year-on-Year (Y-o-Y) fluctuations in the all-India Consumer Price Index (CPI), slowed to 5.7% in December 2022 from 5.9% in November 2022, according to provisional data released on January 12, 2023 by the National Statistical Office (NSO). A significant decrease in food inflation drove it.

 

For the second month in a row, it has been below 6%, falling below the RBI’s tolerance range of 2% to 6%. After reaching 7.4% in September 2022, inflation has been decreasing.

 

The Reserve Bank of India (RBI) anticipated that headline inflation would be 5.9% in Q4 FY23 and 6.6% in Q3 FY23 monetary policy.

 

Prior to falling below the required level of 4% in Q2 FY24, the anticipated CPI inflation was 5% in Q1 FY24.

 

The RBI’s monetary policy report from September 2022 predicts that Real Gross Domestic Product (GDP) in FY24 could fall from 7% in 2022–2023 to 6.5 per cent.

 

At current prices and exchange rates, India’s economy, which now surpasses the UK as the fifth largest in the world, will be worth USD 3.7 trillion in 2023.

 

With a USD 5.4 trillion economy, India would rise to fourth place in 2025 and third place in 2027, according to estimates from the International Monetary Fund (IMF).

 

The Current Account Deficit (CAD) reached 4.4% of GDP in the July-September quarter of the current fiscal year (FY23), the highest level since the June quarter of 2013.

Economy and Business

1. Airbus selects L&T Technology Services as its strategic engineering partner.

 

Under a multi-year contract, Airbus has chosen L&T Technology Services Limited (LTTS), a subsidiary of Larsen & Toubro Limited (L&T), as a strategic engineering partner to provide Advanced Engineering Capabilities and Digital Manufacturing Services.

 

In support of Airbus’ ongoing Commercial and innovation programs, LTTS will provide assistance in key verticals and technology.

 

Airbus’ Numerical Control Programming (NCP) Cluster, which includes composite production, trimming and cutting, standard and advanced machining, drilling and riveting, control and metrology, fast shop machining, and technical support, will receive assistance from LTTS as part of this partnership.

 

In addition, LTTS is a member of the “Skywise Partner Program” and was named a Global Strategic Engineering Supplier under the Airbus EMES3 (Engineering, Manufacturing Engineering, and Services Strategic Suppliers) program earlier in 2022.

Science and Technology

1. India’s first 5G-capable drone, Skyhawk, is being developed by startup IG Drones.

 

India’s first 5G-enabled drone, dubbed “Skyhawk,” was developed by a start-up company called IG Drones. It is capable of vertical take-off and landing (VTOL) and can be used in defence and medical applications, among other fields.

 

It has a five-hour endurance and can carry a 10 kg payload.

 

Key Points:

 

These drones can be controlled directly from the command centre rather than the field with much greater precision.

 

It uses capabilities in thermal imaging and artificial intelligence (AI) to monitor border intrusion and the defence forces’ regular patrols.

 

It has an IP67 rating and can be controlled with a combination of NavIC and GPS navigational satellites that stay connected between 50 and 60 in the event of a failsafe activation.

 

In the event that there is no access to the internet, the drone can also function using satellites.

Services will be downgraded to 3G or 4g in any location where 5G is not available.

 

The Veer Surendra Sai University of Technology (VSSUT) campus in Sambalpur, Odisha, is where the IG Drones startup was founded. At its maximum speed, the drone can travel nearly 100 kilometres in 12 to 15 minutes.

2. The first NASA-JAXA joint mission Geotail Spacecraft is retired due to a failed data recorder.

Geotail space apparatus, the main joint mission of Public Air transportation and Space

The organization (NASA) and Japan Aviation Investigation Office (JAXA) resigned later

30 years in a circle. Due to the failure of Geotail’s remaining data recorder, its mission operations were terminated.

 

Geotail, which launched on July 24, 1992, orbited Earth and collected data on the magnetosphere, Earth’s protective magnetic bubble,’s structure and dynamics.

 

The initial duration of Geotail was four years, but the high-quality data it returned led to multiple mission extensions.

 

In 2012, one of Getotail’s two recorders failed, and the second one continued to function until an anomaly occurred on June 28, 2022.

 

The mission operations came to an end on November 28, 2022, following unsuccessful attempts to fix the recorder.