Current Affairs 24th January

National Affairs

1. In Andhra Pradesh, the Indian Navy held the mega-military exercise AMPHEX 2023.

 

The largest biennial tri-services amphibious exercise involving the Indian Army and Indian Air Force (IAF) took place near Kakinada in Andhra Pradesh (AP) between January 17 and 22, 2023, and the Indian Navy (IN) conducted the six-day mega military exercise “AMPHEX 2023” on January 22.

 

Participants: 

 

Numerous troops from the Indian Army, amphibious warships from the Indian Navy, and aircraft from the Indian Air Force participated in the exercise.

 

Highlights of note:

 

Concerns about China’s increasing military forays into the Indian Ocean, considered the Indian Navy’s backyard, were growing at the time of the AMPHEX 2023 exercise.

 

The exercise featured intricate tasks across all domains that demonstrated and validated the triservices’ high level of preparedness and excellent coordination for carrying out a wide range of amphibious operations.

 

Note that the Indian Army has also acquired the Intellectual Property Right (IPR) for the design and camouflage pattern of the improved combat uniform known as the Camouflage Pattern Dress, which was unveiled by the Chief of Army Staff on Army Day.

 

International Affairs

1. Highlights from EAM Subrahmanyam Jaishankar’s trip to Sri Lanka and the Maldives between January 18 and 20, 2023

 

Union Minister Subrahmanyam Jaishankar of India’s Ministry of External Affairs (MEA) officially visited Sri Lanka and the Maldives from January 18 to 20, 2023.

 

In the Prime Minister’s vision of “SAGAR” (Security and Growth for All in the Region) and “Neighbourhood First,” both nations hold a special place because they are India’s most important maritime neighbours in the Indian Ocean Region.

 

The Maldives trip:

 

Union Minister S. Jaishankar visited the Maldives from January 18 to 19, 2023, to observe the effects of bilateral partnership-provided developmental assistance. Abdulla Shahid, the Maldives’ Foreign Minister, invited him.

 

India and the Maldives signed three agreements:

 

3 India and the Maldives signed a Memorandum of Understanding (MoU) at a ceremony on Manadhoo Island in Noonu Atoll, Maldives.

 

MoU for 100 million Rufiyaa in additional grant assistance for HICDP An agreement was signed between the Indian government and the government of the Maldives to provide 100 million Rufiyaa in additional grant assistance for the High Impact Community Development Project (HICDP) scheme in order to put a number of projects for socioeconomic development into action.

 

Out of 45 HICDPs, 23 have been completed by India.

 

Signatories:

 

Ahmed Khaleel, Minister of State for Foreign Affairs of the Maldives and a Memorandum of Understanding for the Construction of a Sports Complex in Gaafu Dhaal Gadhdhoo:

 

The above parties also exchanged a memorandum of understanding for the construction of a sports complex in Gaafu Dhaal Gadhdhoo, Maldives. This project will set up a center that will help the community as a whole grow and empower young people through sports.

 

MoU between Cochin University of Science and Technology (CUSAT) in India and Maldives National University (MNU) in the Maldives The Vice-Chancellors of Cochin University of Science and Technology (CUSAT) in India and Maldives National University (MNU) in the Maldives exchanged the MoU on capacity building to facilitate exchanges and cooperative initiatives in the areas of education, research, development instruction, community service, 

staff and student exchanges, and other areas.

 

The transfer of two sea ambulances from the Government of India (GoI) to the Ministry of Defence of the Maldives was also witnessed by both Foreign Ministers. This project was carried out as part of the HICDP Scheme.

 

Uz, Deputy Minister of Defense, received the symbolic token for the same.

Hassan Jameel from Munu Mahawar, the Indian High Commissioner,

India gives Maldives a $40 million line of credit India has given the Maldives a concessional $40 million Line of Credit to build sports infrastructure. The extension is part of India’s 

Neighbourhood First Policy, which includes flagship projects like “Fit India” and “Khelo India.”

 

Participation in the Hanimaadhoo International Airport Redevelopment Project’s Groundbreaking Ceremony External Affairs Minister S. Jaishankar and President Ibrahim Mohamed Solih of the Maldives jointly participated in the groundbreaking ceremony. Outside of the capital region, it is one of the most significant investments.

 

The project will include the construction of a brand-new terminal that can accommodate 1.3 million passengers annually.

 

Union Minister S. Jaishankar, along with his Maldivian counterpart Abdulla Shahid, inaugurated the India-Funded community centre as well as a community project in Shaviyani Foakaidhoo.

 

One of the inhabited islands in the administrative division of the Shaviyani Atoll, Foakaidhoo is located in the Maldives and is part of the Miladhummadulhu Atoll.

 

Tour of Sri Lanka:

 

External Affairs Minister S. Jaishankar went to Sri Lanka, which is affected by the economic crisis, on the second leg of his trip. He contacted Prime Minister Dinesh Gunawardena and President Ranil Wickremesinghe of Sri Lanka at that location.

 

In addition, he discussed the entirety of the partnership between India and Sri Lanka with Sri Lankan Foreign Minister M. U. M. Ali Sabry.

 

India becomes the first creditor nation to guarantee the debt restructuring of Sri Lanka. India has pledged $4 billion in financial assistance to Sri Lanka for the debt restructuring of the country. India will encourage more investment in infrastructure, energy, and tourism.

 

Ashok Leyland, a manufacturer of commercial vehicles in India, has won a contract to supply 500 32-seat buses to the Sri Lanka Transport Board (SLTB). Of the 500 buses, 75 have already been delivered. The order is part of a Line of Credit provided by the Export-Import Bank of India (EXIM) under the Economic Assistance Scheme of the Indian Government.

 

With 110 depots spread across the country, SLTB is Sri Lanka’s sole state-owned bus transport provider.

 

Sri Lanka is also home to a bus and truck manufacturing facility owned by the Hinduja group flagship.

 

India’s EAM also took part in three virtual inaugurations, including the transfer of the Kandyan Dance Academy, 100 houses in Kandy, Nuwara Elia, and Galle, and 24 houses in Badulla and Anuradhapura, respectively.

 

India’s previous grants to Sri Lanka:

 

India had given Sri Lanka aid in the amount of USD 3.9 billion to help it survive the severe economic and financial crisis and meet its immediate needs for medicines, cooking gas, oil, and food. 

 

In order to assist Sri Lanka in overcoming its fuel shortage, India signed a credit line agreement in February 2022 for the supply of petroleum products worth $500 million from the Indian Oil Company.

In April 2022, this was increased by an additional $200 million in petroleum products.

 

Sri Lanka received export credit facilities worth 1,500 million USD from India’s EXIM bank and State bank of India (SBI) to import essential goods.

 

In addition, India and Sri Lanka entered into a $400 million agreement to aid in the preservation of the latter’s forex reserves.

 

2. Summit of the World Economic Forum in Davos, Switzerland, in 2023

 

The 53rd Annual Meeting of the World Economic Forum (WEF) was held in Davos, Switzerland—the highest city in Europe—from January 16 to 20, 2023. It was called the “World Economic Forum—2023” or “Davos Summit.”

 

The WEF Summit 2023 will be held under the heading “Cooperation in a Fragmented World.”

 

The event was co-hosted by the WEF, the Swiss government, and the Canton of Graubunden.

 

World Economic Forum for 2023 (Davos Summit) There were 2,700 leaders from 130 nations, including 52 heads of state and government, at the WEF 2023 Summit.

 

Since the COVID-19 pandemic began in 2019, the five-day conclave, which includes business executives, political figures, investors, and academics, is being held in person for the first time in three years.

 

The WEF meets every January in Davos, a small Swiss town that draws some of the richest and most powerful people in the world. World leaders at Summit I of the WEF 2023.

 

The following high-ranking political figures attended the forum: 

 

Olaf Scholz, the German chancellor, Ursula von der Leyen, the president of the European Commission, Roberta Metsola, the president of the European Parliament, Yoon Suk-yeol, the president of South Korea, Yoon Suk-yeol, Cyril M. Ramaphosa, the president of South Africa, Cyril M. Ramaphosa, the prime minister of Spain, Pedro Sanchez, the prime minister of Switzerland, Ala

Olaf Scholz, the German Chancellor, was the only G-7 member to attend the WEF 2023.

 

The forum was also attended by UN Secretary-General Antonio Guterres and Chinese Vice Premier Liu He, while Ukrainian President Volodymyr Zelensky viewed it virtually.

The United States President, Joe Biden, was unable to attend the event.

Due to the severe sanctions imposed by the West on Russia as a result of the war in Ukraine, Russia skipped WEF 2023 for a second time.

 

India for Oxfam: 

 

According to Oxfam India’s report, “Survival of the Richest:” India’s richest one per cent own more than 40.5% of the country’s total wealth. According to “The India Supplement,” in 2021, the richest 1% of Indians will own more than 40.5% of the country’s wealth, while the poorest 50% of the population—700 million people—will only own about 3%.

 

The report showed that the gap between the rich and the poor is getting bigger and talked about how progressive tax policies could help reduce inequality in India.

Background. 

 

On the first day of the WEF 2023 Summit in Davos, Switzerland, Oxfam International released a report titled “Survival of the Richest.”

 

The report states that since 2020, the richest 1% have accumulated approximately two-thirds of all new wealth worth USD 42 trillion, or roughly twice as much as the bottom 99% of people worldwide.

The richest 1% have accumulated approximately half of all new wealth in the past ten years.

 

“The Rich’s Survival: 

The India Supplement: 

 

Some Important Findings The wealth of Indian billionaires has increased by Rs. 121%. 3608 crores per day, or approximately Rs. 2.5 million per minute) since the beginning of the COVID-19 pandemic in January 2019 and its conclusion in November 2022. In 2022, India had 166 billionaires, up from 102 in 2020.

 

India’s richest person, Gautam Adani, saw a 46% increase in his wealth in 2022, and the combined wealth of India’s 100 richest people reached USD 660 billion.

Adani was the second richest person in the world in 2022, according to the wealth index produced by Bloomberg. Additionally, he topped the list of people whose wealth increased the most worldwide in 2022.

 

In India, the wealthiest 10% contributed only 4% of the total goods and services tax (GST), while the bottom 50% of the population contributed approximately 64%.

Meanwhile, the number of hungry Indians has increased from 19 million to 35 million, and the poor in India “cannot afford even basic necessities to survive.”

 

The Chief Economists’ Perspective for January 2023: A global recession is likely in 2023, according to the “Chief Economists Outlook – January 2023” released at the WEF 2023 Summit by the WEF Centre for the New Economy. Nearly two-thirds of chief economists believe a global recession is likely in 2023, and 18% believe it is extremely likely.

 

This prediction exceeds the September 2022 survey’s prediction. Between November and December of 2022, the survey was conducted.

 

Key Points:

 

The chief economists assert that geopolitical tensions continue to have an impact on the global economy and anticipate increased monetary tightening in Europe and the United States.

 

In 2023, they anticipate weak or very weak growth in Europe, while 91% anticipate weak or very weak growth in the US.

 

The equivalent figures for Europe and the United States were 86% and 64%, respectively, as stated in the previous report.

 

In 2023, the report predicts that South Asia and the Middle East and North Africa (MENA) would be the two most powerful regions.

 

South Asia, where 85% of respondents anticipate moderate (70%) or high (15%) growth, has seen a modest improvement since the September 2022 report.

 

Global trends like the diversification of manufacturing supply chains away from China could benefit a few regional economies, like India and Bangladesh.

 

In 2023, inflation is expected to be high, reaching 5 per cent in China and 57% in Europe.

The International Monetary Fund recently predicted that global inflation would fall to 6.5 per cent in 2023 from 8.8 per cent in 2022.

 

At the Indian Sustainability Lounge of the WEF 2023 Summit on January 19, 2023, India’s largest and most valuable drone startup company, Garuda Aerospace Pvt Ltd (Garuda Aerospace), unveiled India’s first carbon-neutral drone.

 

The WEF’s climate action objectives are in line with the introduction of a carbon-neutral, long-lasting drone.

 

Key Points:

 

Over the next 15 months, Garuda Aerospace will produce over 25,000 drones, which will transform the agriculture sector.

 

Made in India drones that are approved by the Directorate General of Civil Aviation (DGCA) make use of a variety of multibillion-dollar industries, such as agriculture, infrastructure, industry 4.0, and defence.

 

By affecting one billion lives, Garuda’s growth strategy is to become India’s first drone unicorn company.

 

Garuda Aerospace’s “Kisan Drone Yatra” Garuda Aerospace Pvt.’s “Kisan Drone Yatra” was announced by Prime Minister Narendra Modi. Ltd., and as a result, the beginning of the second agricultural Green Revolution (2.0) was marked.

 

In order to apply pesticides to farmland, the 100 “Kisan Drones” were launched in 100 villages in 16 Indian states, including Uttar Pradesh, Punjab, and Goa.

Manesar, in Gurgaon, Haryana, served as the launchpad for the Kisan Drone Yatra.

 

Garuda Aerospace’s founder and chief executive officer is Agnishwar Jayaprakash.

Invoices in the amount of Rs. 1.36 Crores at the WEF 2023 Summit At the WEF 2023 Summit, Maharashtra Chief Minister Eknath Shinde signed MoUs worth Rs. 1.36 crore with international investors.

 

Maharashtra’s strong infrastructure, favourable business climate, and government support attracted investors.

 

Over time, estimates suggest that the investments will lead to the creation of more than 66,500 jobs and assist Maharashtra in achieving its target of a USD 1 trillion economy.

 

Giving to Amplify Earth Action (GAEA) was established by the WEF to assist in unlocking the USD 3 trillion in funds required annually to achieve net zero, reverse the loss of nature, and restore biodiversity by 2050.

 

GAEA is a global effort to grow and support new and existing partnerships between the public, private, and philanthropic sectors (PPPs).

 

It has about 45 partners, including HCL Technologies, whose chairperson, Roshni Nadar Malhotra, represents the company.

 

Key Points:

 

Problems with energy and the cost of living put the goal of bringing the earth’s temperature up by 1.5 degrees Celsius in danger.

 

In spite of the fact that the biodiversity crisis is getting worse, the recent agreement reached at the UN Biodiversity Conference (CBD COP15) in Montreal (Canada) to conserve 30 per cent of all land and sea resources is impressive.

 

The growing list of GAEA’s charitable partners includes: Active Philanthropy, the African Climate Foundation, the André Hoffmann Family Office, the Arab Foundations Forum, the Bezos Earth Fund, the BMW Foundation, the Children’s Investment Fund Foundation, the Clean Air Fund, the Climate Leadership Initiative, the ClimateWorks Foundation, the Eleven Eleven Foundation, the Gordon and Betty Moore Foundation, the Growald Climate Fund, the IKEA Foundation, the Laudes Foundation, the Noa’s Ark Foundation, the Open Society Foundations, the Patrick J. McGovern.

 

Other Important Events at the WEF 2023 Summit Telangana Attracted Rs 21,000 Crore in Investments During the WEF 2023 Summit, Telangana attracted Rs. 21,000 crore across a variety of industries at the WEF 2023 Summit in Davos, Switzerland, which just finished.

1. T. Rama Rao, the Minister for Industries & Commerce and Information Technology in Telangana, was in charge of the Telangana delegation.

 

IMF: 

 

During a session on the global economy on the final day of the WEF 2023, Kristalina Georgieva, Managing Director (MD) of the International Monetary Fund (IMF), made the observation that fragmentation can cost as much as 7% of the world’s GDP.

 

In accordance with India’s commitment at COP21 to establish additional carbon sinks of 2.5–3.0 billion metric tons of carbon dioxide (CO2), the Adani Group has pledged to grow 100 million trees by 2030.

 

Mangroves and terrestrial trees would make up the 100 million trees. This commitment was made on 1t.org, the WEF’s “Trillion Trees Platform.”

 

In support of the United Nations Decade on Ecosystem Restoration, a multi-stakeholder platform called 1t.org supports a global movement to preserve, restore, and grow one trillion trees by 2030.

 

Adani Group has pledged the most to 1t.org to date in India, making it one of the most ambitious corporate pledges ever made.

 

After signing a framework agreement at the COP27 climate conference in 2022, ReNew Power in India, a unit of the New York-listed ReNew Energy Global Plc, is currently investigating the potential for green hydrogen, particularly in Egypt.

 

The company has a total wind and solar energy capacity of 13 gigawatts (GW), including projects that are still in the planning stages. Nearly 1.8 per cent of India’s annual electricity needs are currently met by it.

 

India, one of the top emitters of greenhouse gases (GHGs), plans to increase its production of renewable energy from its current 120 GW to 500 GW by 2030, according to government data.

 

The World Economic Forum (WEF) has chosen Hyderabad (Telangana) to host its Center for the Fourth Industrial Revolution (C4IR), which will concentrate on healthcare and life sciences. The C4IR Telangana will be the only such independent, non-profit organization in India.

 

At the WEF 2023 Summit, Mahindra & Mahindra Ltd. (M&M) made the announcement that the Maharashtra government has given its approval to its proposal to establish a Rs 10,000-cr EV plant in Pune. under its industrial promotion program for EVs, a 10,000-crore electric vehicle (EV) plant in Pune, Maharashtra.

 

M&M will use these funds to set up the factory and develop and produce its upcoming Born Electric Vehicles (BEVs) over the course of seven to ten years through a subsidiary.

 

Banking and Finance

1. The Municipal Bond Information Database is now available from SEBI.

 

To assist municipal debt issuers and other stakeholders in the municipal debt market, Ashwani Bhatia, a permanent member of the Securities and Exchange Board of India (SEBI), has launched an Information Database on its website that includes a repository of information about municipal bonds.

 

For projects carried out by municipal corporations, municipal bonds are a dependable alternative funding option.

 

Backdrop:

 

As part of its efforts to develop the bond markets, the market regulator SEBI has put together a program of outreach in New Delhi, Delhi, on municipal bonds and municipal finance.

 

Objective: 

 

To provide a unified platform for stakeholders to discuss issues pertaining to municipal debt securities issuers, investor requirements, and the current regulatory framework, as well as to suggest ways to increase market awareness and traction.

 

Key Points:

 

Statistics and regulations, circulars, guidance notes, and SEBI’s frequently asked questions (FAQs) regarding municipal debt securities are all included in the information database.

 

An issuer looking to enter the municipal bond market can obtain a number of checklists for pre-listing requirements from the repository, in addition to sample letters and certificates from various intermediaries.

 

SEBI’s efforts to grow the bond markets 

 

In 2015, SEBI established a regulatory framework for the listing, trading, and issuance of municipal debt securities. In 2019, the framework was reviewed once more.

 

In India, ten municipal corporations have raised close to Rs. 12 million through the issuance of municipal bonds. despite the fact that India’s municipal debt market is still in its infancy, 2000 crore have been raised since 2017.

 

A variety of development projects, including residential developments, water supply developments, and tertiary sewage treatment facilities, have benefited from the raised funds.

 

2. The Paytm CITI Card is the last co-branded credit card offered by Citi and Paytm.

 

In anticipation of the merger of Citibank’s commercial banking business with Axis Bank, the partnership between Citibank and Paytm (One97 Communication Ltd.) for a co-branded credit card known as the Paytm CITI Card has ended.

 

Customers were informed that the Paytm CITI Card would be discontinued and offered alternative options.

 

The Paytm HDFC Bank credit card will provide cardholders with continuous benefits.

 

Highlights of note:

 

As an alternative to their Citi Paytm Credit Card, customers will be offered the Citi Rewards Credit Card, which they should choose to consent to.

 

The cardholder’s consent to switch to another Citi-branded credit card also authorizes the transfer of their Citibank banking relationship to Axis Bank.

 

The Citi Paytm credit card will be terminated on January 30 if you do not consent, as Citi India will no longer be able to provide services on the Citi Paytm Credit Card. 

 

Background:

 

Axis Bank made the announcement in March 2022 that it would purchase the retail banking division of Citigroup in India for Rs. 12,325 crores, contingent on the necessary approvals.

 

Axis Bank will now have approximately 2.85 crore savings accounts, over 2.3 lakh Burgundy customers, and 1.06 crore cards following the acquisition of approximately 30 lahks individual Citibank customers. With 25 lakh additional cards, Axis Bank’s credit card customer base increased by 31%, placing it among the top three players in the Indian market.

 

Science and Technology

1. SpaceX launches 51 Internet Satellites in its 1st Starlink mission of 2023.

 

In its first Starlink mission of 2023, SpaceX, led by Elon Musk, successfully launched 51 internet satellites into low-Earth orbit from Space Launch Complex 4 East (SLC-4E) at Vandenberg Space Force Base (formerly Vandenberg Air Force Base), California, United States of America (USA). The launch was originally scheduled for January 9th, 2023.

 

On this launch, the Starlink 2-4 satellites will be launched into an orbit that is 70 degrees inclined toward the equator.

 

This is the second launch into Group 2 after a mission in September 2021 that also orbited 51 Starlink spacecraft.

 

In order to resume the deployment of the constellation’s second shell, SpaceX carried out the initial Starlink launch in 2023.

 

The rocket will carry 51 Starlink internet satellites, bringing the total number of Starlink spacecraft that have been launched to 3,717.

 

Note: The Falcon 9 first-stage booster supporting this mission flew for the first time during this flight. In addition, it is the first launch of 2023 from Vandenberg Space Force Base.