Current Affairs Revision - 01 | Economy | TARGET UPSC Prelims 2024 | Drishti IAS English

[Music] hello everyone as the dates for the upsc prelims 2024 has been changed and has been shifted from 26th of May to 16th of June so the extra time that you people have got so this time is not to relax and waste it is time that you even re do revision with more intensity and revine and revise even at a more faster pace so with this we have come up with the target upsc 2024 prelims [Music] Series in this series we will be covering different subjects with regard to the current affairs like for example economy poity international relations art and culture environment Etc and then there is one more series that is the McQ Series so that you can revise and you can go into the Zone where you are able to solve the mcqs and every single day that is the seven days in a week we will be coming in front of you so that you people can revise at a faster Pace with us so that is current affairs section we will be coming up at 100 p.m. daily and then the McQ series we will be coming up at 9900 p.m. on daily basis so that's all and in today's episode we will be covering the topic of economy so hello hello everyone and welcome to the Target upsc prelims 2024 series I am Aisha and in today's episode we will be covering the subject economy so this is episode one of economy so let's begin so for the first topic that we will be discussing is the E invoicing and curving tax evasion so why was it in news so the government has lowered the threshold for businesses to generate e invoice for businesso business transactions from rupees 10 CR to rupees 5 CR and why it has been done the aim is to curve tax evasion and increase compliance under the goods and services tax regime so first of all what is business to business transaction it means that the transaction has been done from one business to another business because there is one more term that you will see in news that is one is B2B and second is b2c so B2B is business to business while b2c is business to customer so this is with regard to B2 B so the threshold for the business to generate e invoice has been lowered down and it has been lowered down from rupees 10 CR to rupees 5 CR and what is the aim is to curve tax evasion so whatever the tax evasion that people were doing to put a check on it it has been done with this AIM now what is Ein invoicing under GST so what is e invoicing e invoicing is a system where B2B that is business to business invoices and some other documents are electronically authenticated it means that they are checked their credibility dates details are checked then authenticated electronically that is e by the gstn and gstn is the goods and services taex Network for further use on the GST portal and all all this is done on the portal that is the GST portal so basically you have to remember that electronic authentification is being done under e invoicing then e invoicing involves submitting already generated standard invoices on a common e invoice portal automat reporting with a onetime input of invoice details so already generated it means that the invoices which are already generated the upcoming not the upcoming invoices the invoices which have been already generated then an identification number is issued against every invoice by the invoice registration portal so this identification number is what separates one from the other so the ident identification number is generated and this this becomes important for any kind of further use also and to identify and distinguish one from the other then it transfers the invoice information in real time to the GST portal and the eBay Bill portal so both the GST portal and the eBay Bill portal receives the realtime information with regard to the identification number real time information means then and there only then the eBay bill now what is the eBay bill so eBay bill is a compliance mechanism wherein by way of a digital interface digital in interface the person causing the movement of goods upload see what if this is like this is one state this is second state this is one this is second and if the if the movement of goods is taking place from one state to another state now what happens is that there are borders every state has its own border and then the border at the border the checks check are being put up so the movement of goods cannot take place just like that so what happens is to minimize to minimize the manual interface and to minimize the manual work the eway bill came up and eway Bill can be generated electronically where the movement of goods is taking place so it is a compliance mechanism wherein by way of a digital digital interface the person causing the movement of goods uploads the relevant information so whoever is causing the movement of goods from one place to another place relevant information is uploaded prior to the commencement of the movement of goods and generates an eay bill on the GST portal so the eBay bill is generated on the GST portal before the start of the com journey and and therefore facilitating faster movements of goods because that is where through the eBay Bill the movement becomes easy at the checks to the other border states also then this eliminates manual data entry while filing returns and generating eBay bills now manual data entry is also reduced and at the movement of at the border movement the movement also becomes smooth because of the generation of the e Bill and because of the generation of the E Bill transparency is also becomes easy and transparency is maintained because everything is at the digital platform then what is the significance of it with a uniform invoicing system the tax authorities are able to prepopulate the return and reduce the reconciliation issues now as the uniform invoicing system it means that for everyone it would be same so the uniform invoicing system would be there so the returns can be filed at a faster pace and the reconciliation issues will be reduced because when everything everything will be done in a in a faster Manner and then digitally everything will will be done firstly the manual interference would be less and then secondly if everything is digitally then the transform then the trans Arcy is there and the objective nature is also preferred with a high number of cases involving fake invoices and fraud availment of input tax credit now this is a problem which is coming up that the fake invoices are being generated by the people so that the they can generate the eBay bill so fake invoices is being generated by the PE by the people for the movement of the goods now this is a point which needs to be looked into and it is being looked into then the GST auor authorities have pushed for implementation of this e invoicing system which is expected to help to curve the actions of TX evaders so tax evaders needs to be found and tax evasion the problem of tax evasion needs to be sorted out because through the process of movement of goods from one place to another place specifically at the border points at the check points this is where the problem was mostly happening and this is this was also leading to a lot of cases of corruption also so tax evaders and tax evasion problem also needs to be sorted now comes the second point and before moving forward with this let me also tell you that whatever whatever points we will be covering under this and we have already made a video on that so you the link of the video you can find in the description box so you can also go and check in the description box if any specific and in depth and in detail information you need so you can go and check out that video also so let's move forward second point is the India's power sector in 2030 shift to Renewables and Coal's decline as coal is the fossil fuel and also causing a lot of harm to the environment so a decline in coal is preferred while the shift to the Renewables now what is renewable energy it means the energy which which can be generated and it is not causing bad effect to the environment like for example solar Hydro wind Etc so these are the renewable energy and we can make a sustainable outcome out of it so why was it in news so the central electricity Authority that is the ca which comes under the ministry of power has released a new publication titled report on optimal generation mix 2030 version 2.0 so optimal gener mix 2030 and who has released it that is the central electricity Authority comes under the ministry of power many of times this can also be asked then this is an updated version of the report which was published in 2020 and the name of the report was optimal generation capacity mixed for 20293 so this was the first one and this is the second one and that is why it has been named as 2.0 then the report highlights the changes expected in India's energy mix with a decline in Coal's share now this is very important point that the decline in the coal share is expected and a rise in renewable energy sources so I think this becomes easy for you to remember coal is decline renewable energy is increase then what are the key highlights of it so the Coal's share in the power mix is projected to decline from 73 3% to 55% in the year 2030 so this will be a huge decline then the solar energy is expected to play a significant role in lifting the overall load and it is indicated that a quadring of solar capacity from9 gwatt to 392 gwatt by the year 2030 so quad rling and when we talk about the renewable sources of energy then among all that is the solar wind hydro and all others solar energy plays the dominant role and it takes the maximum percentage out of all then projections for large Hydro power and wind energy remain modest in the future power mix so it is the solar energy which is taking the maximum percentage large hydrogenation is expected to increase from 8% to 9% so by the year 2030 Hydro generation in if shift would be from 8% to 9% then what are the key highlights first that is wind generation wind as we all know so wind generation is basically at the places of you can say Gujarat Tamil Nadu so wind generation is projected to decrease to 9% in the updated version earlier it was 12 so wind generation is expected to decline from 12% to 9% so wind generation is a decline while solar Hydro was increase then renewable sources including small Hydro pumped Hydro solar wind biomass is expected to account for 31% of the power mix in 2030 compared to the current 12 so this is a huge jump that is from 12% to 31% it means more than double power sector contributes approximately 40% of India's total greenhouse gas emissions as we all know greenhouse gas emissions needs to be checked with regard to the carbon di oxide carbon monooxide hydrocarbon chlorofluorocarbons so the power sector emissions are projected to rise by 11% emissions are projected to rise next is the carbon border adjustment mechanism now why was it in news so the European Union has announced that its cbam that is carbon border adjustment mechanism has been introduced in its transitional phase from October 2023 first of all you need to remember that the carbon border adjustment mechanism is related to the European Union because this becomes important in the prelims State one of the questions in the statement can be that the cbam is related to European Union instead of European Union the name would be changed then it will Levy a carbon tax on Imports of products made from the processes which are not environmentally sustainable able or non- green so the the processes which will harm the environment and is not causing any good to the environment those kind of processes or those kind of those kind of processes the carbon tax would be put on those kind of processes then the CBM will translate into a 20 to 35% tax on select Imports into the EU starting 1st June 2026 so the the carbon border adjustment mechanism will translate a 20 to 35% tax now this is a very high percentage of tax that is 20 to 35% per of tax so imagine that the 30 more than 30% of the tax will be levied on it and the starting date or date not the date starting year becomes important for you to remember then what is cbam what actually it is so it is a part of the fit for 55 in 2023 package so fit for 55 in 2023 package belongs to the European Union and it talks about that by the year 2030 Green greenhouse gas emissions should be around 55% less so which is eu's plan to reduce greenhouse gas emissions by at least 55% by the year 2030 as comp compared to the 1990 levels so year is 2030 by how much the by how much percentage the decline is expected that is 55% and who is who with which country it belongs to it belongs to the European Union and European Union is a group of countries under which many countries comes there are around 27 28 countries under European Union so this is the fit for 55 in 203 package and the cbam is a policy tool which is aimed at reducing the carbon emissions so carbon emissions needs to be reduced so it means that the footprint of the carbon emissions needs to be reduced and that is how the Paris agreement can also be reached and the problem of climate change which actually nowadays we keep on talking about and is increasing so that carbon emission needs to reduce by ensuring that imported goods are subject to the same carbon costs as the products produced within the EU and every single country is being very focused on on reaching the Net Zero Target also and bringing the carbon footprint and the handprint at the same level now what is the significance of it it is it can encourage non-eu countries to adopt more stringent environmental regulations which would reduce Global carbon emissions now EU countries are basically the developed countries so when the developed countries will take such an initiative then only they can support and expect the developing and the least developed country to also take an step forward with regard to the reducing the carbon emissions it can prevent carbon leakage by discouraging companies from relocating to countries with weaker Environmental regulation and now this is one of the major problem which the world is facing that the bigger companies and with regard to when we talk about the carbon emissions so it is basically the top three to four developed countries over the years be it the United States of America Russia China United Kingdom or the European nations which have majorly contributed to increasing the global temperature or increasing the carbon emissions in today's time so what the countries or what the bigger countries and the developed Nations and the bigger companies are doing that they are finding out the countries which have weak environment regulations so so they are setting up their companies in these countries then the revenue generated from cbam will be used to support EU climate policies as it it belongs to the European Union so the European Union climate policies will be supported by it which can be learned by other countries to support green energy then what will be in its impact on India's export India's export means what the the the product which is going out from India to other countries then it will have an adverse impact it means it will have a bad impact on India's exports to of metals such as iron steel and aluminium products to the European Union because these will face extra scrutiny under the mechanism see when any country if one country's products are going to other country then when the other countes importing some other countes exports then the taxes or the tariffs or the levies are put on the products so this is where the Indian exported products will face a problem India's major exports to the EU such as iron ore and steel face a sign ific threat due to the carbon levies which is and the levies are ranging from 19.8% to 52.7% now see this becomes a very high percentage and because of this the cost that surges reaches to another level and that is why the export competitiveness decreases because imagine 50% of a carbon Levy the amount that has to be paid becomes very huge the carbon intensity of Indian product is significantly higher as compared to the all the other European nation countries so the carbon intensity because it will be higher so the tax Lev will also be higher then next comes the multimodal logistics Park in Assam as the name itself is telling multimodal multi means many many different ways through which the logistical things can be supported why was it in news that the union minister of Port shipping and waterways and iush it visited the construction side of India's first it will be India's first India's first International multimodal Logistics Park in Assam then multimodel Logistics Park is likely to boost connectivity in the Northeast so it will B it is basically to boost connectivity that is the infrastructure with regard to the rail roadways Airways ports so that is how the connectivity will be stronger what is MMP mmlp so it is a Transportation Hub that combines different modes of Transport in one location to enable efficient movement of goods efficient movements of good means easy movements of easy movement of good so if there is no Railway Network at some place then the road Network should be there if there is no Road Network from one place to another place then there should be other ways so overall connectivity has to be there so that convenience conveniently people can move from one place to another place then these logistic Sparks are typically located near major transportation nodes such as ports airports and highways to support these bigger infrastructure giants like the ports airports and highways so around these it needs support so the logistic Sparks are made they are designed to handle a large volume of goods with facilities for warehousing distribution value added services such as packaging and labeling so they can handle a large volume of goods at one single point of time and India being such a big country it needs bigger spaces to hold their product and also to store them at a single point now what is the significance of this project so the park is being developed under the ambitious bhat Mala peroa of the government so bhat Mala peroa is with regard to the movement of the roads so it basically it comes under the infrastructure project this park is being made by the national highway and infrastructure development cooperation limited important because this can be asked that who is looking after it or who is responsible for this project then the park will be connected to Road rail air and waterways you should know one one example of it it is being developed in 317 acre land along with the brahmaputra river as it is in Assam and the and one of the major rivers of the Northeast is brahmaputra and the project is likely to unlock huge potential for the region along with neighboring countries like Bhutan and Bangladesh will also be beneficial for India's neighbors like you can say Bhutan Bangladesh because the if the connectivity will in will be better in India it will be good for India's neighbors also then next comes the anti-competitive practice by big tech companies big tech companies now why was it in news some startups have accused the i m AI which is the Internet and mobile Association of India of favoring big tech companies over smaller ones which highlights the issue of anti-competitive practice by big big tech companies so what the big tech companies does is that because they are so huge in size it is being said that startups are saying that the Internet and mobile Association of India is favoring these companies instead of the smaller ones and I Amai is a non not for-profit industry body it is registered under the society's act 1986 important point for you to remember that it is registered under which act it mandates is to expand and enhance the online and mobile value added Services sector so the online and mobile value added service sector is what is its main aim what is Big Tech so the term big Tech is used to refer to a handful of large globally significant technology company such as Facebook Microsoft Google Amazon these are huge companies they are the big giants of the technology world big Tech is better understood as a concept rather than a static set of companies new companies may enter this category just as existing ones may drop out of it because they are so huge in size that they have this capacity even to manipulate the laws according to themselves because of their huge nature and they also provide a huge employability to a large section of the society what is India's current approach to regulate big Tech so according to the competition Act of 2002 in India antitrust issues Anti-Trust issues are governed by the competition act 2002 and the CCI checks upon monopolistic practices so the you have to be you have to keep in mind that it is the competition Act and the CCI which keeps a check on these big tech companies then what is the role of big Techs in India's digital space so when we talk its role with regard to India's digital space we have to look into different perspectives so first one being the revenue source so they play a prominent role in the fintech market that is the finance technology Financial technology Market an attractive Revenue Source particularly because of low per user add Revenue in India as compared to other countries like the UK or the European Union India has low per user ad Revenue second overcoming literacy barriers voice based and Regional language interfaces are offered by the big tech companies to reach new users and overcome literacy barriers India is a country in which many Regional languages are used and the people in the rural areas they are very comfortable in their Regional language as compared to other language like for example they're not very comfortable in English so the big tech companies can even afford to translate things into the regional language and that that is how they they increase their reach within people or within the market then what is the role of big teex in India's digital space so bridging infrastructural and employment gaps so the big tech companies are providing a lot of employment in in India and especially with regard to the you can say the financial Market or the software the software markets or you can say that the big giant technology companies are all the companies which are big tech companies they are mostly not indians then the infrastructure also they are helping to build is so whenever there is a huge off office being build of the big tech companies because they're so huge and the the employees are very high in number so the infrastructure buil is also very high quality then the social and political progress so most Indian internet users rely on one or more big Tech platforms to access information communication and participate in political and social life so people are associated with these Tech forms big tech companies in some way or the other even in their daily life like for example we communicate with each other through WhatsApp we check other people's social profile on Instagram so what are we doing we are using these big tech companies or these big tech companies are using or taking our time then next is the report on currency and finance 2022 23 so why is it in news so the cumulative total expenditure for India's adaptation to climate change could reach 85.6 lakh CR by the year 2030 adaptation to climate change means that the technology that we need and the time that we need to adapt to the climate change so what is the whatever the change that is happening because of the climate change and the adaptation that we will be doing to it the amount required will be this by the year 2030 and according to an estimate made by The Reserve Bank of India in its report on currency and finance 2022 23 so the report has been given by RBI that becomes important if whatever if RBI is saying and if RBI is giving out any report it becomes important for you what is it it is an annual publication of the RBI annual publication means once a year the report covers various aspects of the Indian economy and financial system so how Indian economy and financial system will be playing a role in adaptation to the climate change then the theme is towards a Greener cleaner India Greener cleaner India clean India green India it focuses on the challenges and opportunities of climate change for India so whatever challenges India will be facing with regard to climate change and whatever opportunities it will be giving then comes what are the key highlights of the report first with regard to the renewable energy targets so India need to significantly increase its use of renewable energy to achieve its goal of Net Zero by the year 2070 so India's Net Zero Target is by the year 2070 and all other countries have also set their Net Zero targets Net Zero T what is net zero first of all so that becomes uh sometimes these simple questions can be also be very tricky because many of times we see that our mind is not working in that condition and in when you're sitting in the prelims and giving your prelims exam this is what actually happens because our mind is running in such a shape that we might not be able to process even the easiest of things so Net Zero means that whatever we are giving out we are also able to take in so if we are giving out quantity five then we are also able to absorb quantity five so if we are causing pollution or we are CA causing carbon emissions we should also be able to put them down the reports suggest that India should aim for Renewables to account for 80% of its energy mix by 20771 very difficult thing for India to do as we are very much dependent for our energy on coal and we import majority of it and not even majority of it we import more than around 85 to 90% of it so that is how it becomes very difficult for us to move away from the fossil fuels and to move away from the fossil fuels of the coal and to move towards renewable this would require an accelerated reduction in the energy intensity of GDP by about 5% annually so on on annual basis 5% next is the green financing requirement so India's green financing requirement is estimated to be at least 2.5% of GDP annually till 2030 GDP is the gross domestic product to address the infrastructure Gap caused by the climate events because of the climate events infrastructure is also facing a lot of problem as we see if Glaciers are melting we see the water level is rising now when when some things you can say some Dam or some pools are being built this in earlier time like you can say that if a pool was built around 25 years old it was the it was not kept in mind that this would be the pace at which the glaciers will be melting or this would be the pace at which the water level would be rising then the financial system may need to mobilize adequate resources and relocate current resources to contribute effectively to India's Net Zero Target now Net Zero Target to meet this system finances is one of the major thing that needs to be looked into and that is how and that is when the developed Nations plays a major role because these developed Nation will help the developing countries and the least developed countries because they are the countries who has who has worked its way and has increased the global temperature and because of which the other least developed in the island countries are also suffering so the burden should also be put on the developed countries in the end then comes the point of policy intervention the report also highlights the need for a balanced policy intervention to ensure progress across all policy levers which would enable India to achieve its green transition Target by the year 2030 and make the Net Zero goal by the 2070 attainable see Net Zero Target is different and National targets that every country make for themselves is different and then there are with regard to a agreements and protocols targets that is different so you need to be very clear that what Target do we are we talking about and most important being the Net Zero Target that is the 2070 year then Financial Risk due to climate change the public sector banks in India may be more vulnerable to climate related Financial Risk than private sector Banks so it is the public sector banks in India that will be more prone to The Climate sector change then comes the policy instruments so the central banks have several policy instruments at their disposal to influence investment decisions and the allocation of resources and credit to achieve sustainability Targets this includes mandating Banks and other Financial institutes to consider climate and environmental risks through various regulations now Banks also needs to look into this because what will happen is that when any company in the future will come to take loan with regard to The Climate risk or the environmental factors will play a major role in it then the banks will have to keep it in check then comes the next topic that is the central counterparties that is Central counterparties why is it in news so the European Securities and markets Authority that is the ESN ma the European Union's financial markets regulator it has derecognized so the esma which is European Securities and Market authorities it has derecognized six Indian Central counterparties so six Indian Central counterparties have been derecognized from April 30 2023 in accordance with the European market infrastructure regulation so the name of the six ccps are given basically the name you do not have to remember it what can be asked is that the D recognition of six centr Indian Central counterparties has been done by whom so you have to remember that is European Securities and markets Authority now what is CCP that is Central counterparties it is a financial institution that acts as an intermediary between buyers and sellers in various derivatives and equities markets so see if there is one buyer and one seller in between there is an intermediary which is called the CCP so it is the financial intermed Financial in institution which works as an intermediary between the buyer and the seller and they are structures that help facilitate the clearing and settlement process in financial markets so between the buyer and the seller the settlement process the intermediary helps in settling the sett the matter so that facilitating the clearing and settlement process is what the CCP looks into and the goal is to increase efficiency and stability in financial markets so the goal for the ccps is to bring efficiency and stability as the market as of now is unstable one of the recent reason being the covid so to bring the stability into the market ccps reduces risk associ assciated with counterparty operational settlement Market legal and default issues and it acts as a counterparty to both buyers and sellers in a trade so it is for both buyers and sellers it does not mean that it is specifically for one side it is for both buyers and sellers now what are its functions so the functions of CCP is clearing and settlement are the two main functions of CCP clearing and settlement clearing involves validating the details of the trade and ensuring that both parties have sufficient funds to complete the transactions it means that looking into the thing that both the parties who are sitting on on both the sides of the table whether both of them have clear funds or not so one is there to buy it one is there to sell it settlement involves a transfer of ownership of the assets or security being traded from the seller to the buyer so this is a buyer this is a tell whether both have money or not the CCP will look into and whether the transaction that has taken place has been taken place well and both the settlement has been done final settlement has been done or not is also the responsibility of the CCP then regulation of ccps in India how how is it dealt in India is the Reserve Bank of India for ccps clearing money market instruments and foreign exchange derivatives so in India The Reserve Bank of India looks and regulates the ccps and a CCP is authorized by the RBI to operate in India under the payment and settlement system act 2007 so it is authorized by the RBI regulated by the RBI and it is it operates in India under the payment and settlement system Act of 2007 and sebi for CCP is clearing Securities and commodity derivatives so the Securities and Exchange Board of India when it comes to the clearing Securities and commodity derivatives CCP is dealt with the sebi now how why has esma derecognized Indian CCP so what is the reason of the D recognition so the esma D recognized Indian ccps due to their failure to meet all Emir requirements so the ccps are not being able to meet the Emir regulations or guidelines and then what is Emir Emir is the European market infrastructure regulation so the European market infrastructure regulation is what the ccps are not able to meet and the decision came due to no cooperation Arrangements between esma and Indian Regulators so the cooperation Arrangement has not been made between both the parties and that is why the D recognition has been done and the RBI SEI and the International Financial Services Center authorities so the the cooperation agreement has not been done esma wants to supervise these six ccps and Indian Regulators are of the view that since these domestic ccps operate in India and not in the EU these entities cannot be subjected to the esma regulation okay so the Indian side is saying that these EU are domestic ccps these ccps are domestic and they are operating in India so they do not come under the esma regulations as they are domestic in nature as they are domestic in nature they are operating in India they are not operating in the EU or the European Union so they do not come under their regulations this is what the point of the Indian side is so these were the topics that we discussed in today's episode and it was Central counterparties then comes the topic of report on currency and finance 2022 23 then anti-competitive practice by big tech companies then multimodal Logistics Park in Assam then came the the carbon border adjustment mechanism then India's power sector in 2030 then it was the E invoicing and curbing tax evasion so these are the topics that we discussed in the first episode like this we will be covering few topics which are important from your preliminary exam in the other episodes also and like this we will be covering other subjects also as this is the first episode of the series stay tuned for with us for current affairs episode at 1: p.m. and McQ episode at 900 p.m. and we will be covering the covering the current affairs of all the subjects slowly and steadily so that your preparation is not hampered and we will be helpful to you in your preparation and as I always say when I end my videos that is till we meet next time keep reading keep writing and keep subscribing to the channel thank you [Music] for more informative content like share and subscribe and do not forget to press the Bell icon to get the notifications

Channel: Drishti IAS : English

Views: 12,051

Keywords: current affairs 2023, daily current affairs, upsc current affairs, current affairs for upsc, current affairs 2024, upsc prelims 2024, monthly current affairs, current affairs today, monthly current affairs 2024, last 6 months current affairs 2023, upsc prelims 2024 current affairs, current affairs for upsc prelims 2024.

Id: RRCMaz1b8Sw

Length: 44min 45sec (2685 seconds)

Published: Mon Apr 01 2024