The Analyst 13th April 2024 Current Affairs Today | Vajiram and Ravi Daily Newspaper Analysis

[Music] hello students welcome back to the analyst of 13th of April 2024 and where we'll be trying to understand the most important articles from the Hindu and the Indian Express now the very first article is regarding a very important report in the India's education sector that is the ACA 2023 report in the second article we'll be looking at the issues and implementations of the forest Rights Act in the third article we'll be looking at the recent train of the Consumer Price Index in the Fourth Article we'll be looking at a very important geophysical incident known as a volcanic Vortex rings and in the final article we'll be looking at Double taxation avoidance agreement and the recent India mishes dtaa agreement regarding the same in the final one we'll be looking at prelims snippet where we will be taking up short articles for Effective prelims revision for which the examination is due soon so students beginning with the very first article we have a recent report by pram NGO that is the Acer 2023 the full form of the same is annual status of Education report so from the name we can guess that it is an annual report that looks into the status of primary education in the country and here it is a very very important report because we know by a very famous code that the pen is mightier than a sword that means with the power of your pen with the power of your books that is with the power of your knowledge you can potentially change your lives your entire family's lives and even potentially the entire world's future too so that is why you know in a country like India where the most of the people firstly lives in the rural areas secondly mostly we have to understand India is a young country so mostly the population is also very very young and when the population is Young it is a responsibility of the government it is a responsibility of the entire Society to make sure that our sons and our daughters are properly educated so that is why we have to understand that we need timely and periodic regarding what is the status of the education scenario in the country and this report is beautifully capturing the same and here this article is very important for the prelims with reference to economic and social development and for your GS2 it is very very important for us to look into the issues with respect to the management and the various other dimensions with respect to health education and Human Resources now here we'll be looking into the basics of the reports first firstly in India we have to understand we have the right to Education Act and the right to Education Act is guaranteeing education of every child in the country up to the age of 14 years and here we have to understand that in 2020 to 2021 according to this report the Class 8 enrollment was around 22 million students in the country so we can understand that from Class 8 onwards there were 22 million new students in the country with reference to higher and s primary and higher education ation and the transition rate from Class 8 to class 9 is around 89% we can tell at the national level so we know that a lot of our children is actually studying in the schools and a lot of students have their Futures tied to the education system of the country and here we need to ask ourselves this question that is our youth adequately prepared for the path ahead that is the future ahead when we talking about the future ahead we are talking about new skills which pan digital literacy which pan various amount of skills that is important for the coming age right so are our youth skill for that and here that is why the report specifically focuses on something which is which they call as Beyond Basics so aser tells that the entire survey that they conducted across the entire nation with reference to using various citizens for this survey for asking various questions by going to various schools to various societies to various children and their families so they went and they asked some questions those questions can be fitted in three categories first category is the activity that means what are the youth currently doing nowadays so when we talking about the youth this report is talking about the youth from the age bracket of8 14 to 18 years old so what is the youth between this Gap doing are they going to Schools are they going to colleges are they working or have they said dropped out or are they working somewhere are they doing some vocational training or so on so these are the questions that the aser report is specifically focused on next they will be also looking at the ability of the students the literacy and the numeracy tasks so I will be telling you and I will be instead also showing you the various tasks that they have given to the students and the questions they have actually posed to the students and finally they will be looking at the access awareness and the skills with digital devices such as smartphones laptops tablets and so on so here let us look at the questions that the surveyors they have went into the various schools and the children and they've asked them see the very first questions and one of the very basic questions is that they will be giving a text which is of class two level and they will be telling the students to read it out and here you can see 76% of the all of the youth in the age can read in this bracket say 14 years to 18 years of old and 76% females were actually uh you know more conversent with the uh script here and with the text here than males here that is also something that we have to wonder next with reference to basic arithmetics say basic division skills and here we can see the percentage or say the number is dropping from the reading skills to numis skills so we can see only 43% of the youth can actually solve this equation or solve this uh calculation and here with reference to basic English sentences right only around 57% of the youth can read English sentences and apart from this moving forward with our more examples we can see with reference to Everyday calculation such as using a ruler and finding out the length of a say for example a key almost 85% got it right sadly we could not get 100% of the same and also we can see uh they have been given some complex questions such as can you comp calculate time they have been given with a you know particular problems statement and only say around 45% can come up with the right answer with reference to say another problem which can be traced with logical reasoning critical thinking mathematical issues so here we can see again 48% of the youth could get at the right answer and when we go across all the tasks in the survey males have performed better than the females for every tasks those who are enrolled do much better than those who are not enrolled in a primary education system obviously if you're not getting educated at schools how can you answer these particular basic questions here now we will be looking at some of the important data highlights and the main highlights from the reports that you do definitely have to write in any answers regarding the issues in our education systems and you can directly quote this report in your answers so do remember this kind of data and do note this down somewhere you will also getting the handout in which you will be getting the same now see uh 26% of this age bracket cannot read a class uh two level text in their own Regional language apart from Hindi English or any other language in their own Regional language mother tongue they cannot read it obviously this is an issue next uh we have to find out the the root of this issue the main cause of this issue can be traced back to ASA 2018 report now ASA 2018 report were concerned up to the education levels of up to up to the bracket of 14 years old so the 14 years old back then right have right now say are in the 18 years bracket so those students back then around 32% of them could not say of say 32% of the Class 7 and 27% of the Class 8 children could not read a class two level text so those students have actually graduated to higher classes right now and they only right now cannot understand the basic text in their own Regional language so we can understand back in 2018 we got this Insight but probably the state governments and some of the main uh issues in the various governments right across the state levels and across the district levels they could not focus on this issue and probably that is why the issue still exists now this is the very first thing second thing is that if we get some insights from an earlier report we must be definitely working it because with reference to health with reference to education this issues persist over time unless and until we drew something about it lesson is that unless children acquire foundational skills in the primary grades right they're extremely unlikely to be proficient in the higher grades too so this is the thing which I told you next the girls aspiring for college education were actually more in percentage than the boys and when we talk about this aspirations right with reference to higher education we can see there are various different variations between gender two next boys also preferred police services and defense Services apart from the girls who prefer to become a teacher or a doctor when it came to the career progressions or say career Ambitions now this is also very very stereotypical thing that we can assume here mainly because this is the sentiment this is the mentality that is also prevalent in the Indian society that is also partly modern and partly traditional yet and here we have to understand the sentiment towards vocational education is also mixed for example in the uttar Pradesh State the as find out for found out that the perceptions towards vocational education was negative because mostly the families do not want their children to work as electricians or repairers or say other kind of activities which the vocational education generally teaches about but in states such as uh Himachal Pradesh uttarakhand the you know participants the parents were very very uh encouraging about this vocational education because in the states tourism is a is a very active economic sector so that is why vocational education in tourism sectors are very very encouraged in those States next there is also a dir or say lack of reading materials apart from the ordinary school books now we understand that we cannot only teach our children uh basic maths and basic stories and so on we should be giving them some fiction books some non-fiction books some say good amount of reading material to expand their knowledge right that is also not say uh uh very quite adequately available here next the students are also exposed to radicle and embarrassment if they're not able to read basic texts it is it is understandable that they cannot read such things due to various issues at the school level it is not mostly at their at their own say expense too it can be due to school issues it can be due to family issues it can be due to many other issues but the thing is that they are subjected to radicle and embarrassment so that is why many students even dropped out because they thought they are not capable of studying at all this is a very very sad thing and finally the students who use smartphones they mostly use start smartphones for entertainment purposes such as using social media and watching Instagram reals and so on you tell that if the students would have gotten access to some good amount of interactive educational content so would they have watched those things maybe yes but when the students could have gotten some choices so the thing is that interactive education content must be also given as a choice to the students and then we find that the students who have access to the smartphones they can also what some educational content that can eventually also raise their interest in education too now with respect to this the government have had many policies over the you know previous few years that Target the 14 to 18 year old students firstly if we talk about foundational skills we have the service sha Aban that is aiming Universal Elementary education uh particularly to Foundation skills such as basic skills of reading and comprehension and Mathematics too that is up to Class 8 that indirectly also benefits the next age group of 14 to 18 years then we have the national mission of reading which is also a very very important initiative of the Ministry of Education that is targeting classes 1 2 three and this is about enhancing the reading skills of the students then they are also encouraging school competition the competition between various schools in local areas in districts and between the states samagra Sika Aban Rashia mimic Sika Aban where we have to where the government is giving more and more grants for infrastructure development scholarships capacity building for teachers training for teachers and so on for this uh extent we have a separate scheme also which we know as PM shre PM shre is actually a very very important scheme for the training and development of the skills for the teachers in the country next we also have National scheme for many incentives which are given to girl child and and one of them is also very famously known as bety bachow bety parau scheme right and apart from this we have various schemes related to learning gaps such as digital classrooms which are being introduced online modules on say YouTube and various other platforms we have the adult tinkering Labs which is trying to bring in the school basic science to the classroom via institutions such as IC iits and even ISRO right this is a very very important initiative by the Niti AOG too then we also have the National Education policy of 2020 which is also focusing on total reamping the entire ecosystem of the primary education and the higher education in the country and it is trying to encourage new Ed skills and also vocational education apart from the co-curricular activities in the schools too which can help the school students to become motivated in the classrooms apart from these many schemes we also have the me deml scheme which is trying to ensure that the students Do not drop out the school due to some monetary issues of their families due to some social issues of families where the school children can get free food in the schools itself and there are also many state government schemes in the same and here we need proper career guidance for that the national career service portal is also there for the students finally the way ahead or the various suggestions that the es report is giving is that we must be encouraging and empowering students to to the schools and go to the schools for this we need immen M amount of motivation that should be that we should be giving to our school children next we should be also having many community libraries where many students from various classes from various backgrounds can go and study alongside and here we have a very very important is Officer known as you know F ahed mtas who is now the district magistrate of Jamara jarand who has totally transformed the old buildings in his districts to community libraries where students can go and prepare for the school exam for competitive exams and so on next there's also need for handholding and mentoring because because according to survey 50% of the students do not know anyone else in their own desired profession if they want to become a doctor if they want to become an engineer they do not know any other Engineers or doctors or they do not have a proper Mentor such as a teacher who knows about those professions so that is why they do not even get encouraged to pursue those carriers and the final thing that we have to take care is about increasing amount of collaboration that we have to do with the eight Tech platforms the industry and the various professional groups to make educative content more and more approach of and more and more entertaining so that the students apart from the using social media and they using the smartphones for entertainment purposes they can also watch engaging discussions on the mobile phones that they have in the next article we'll be looking at the forest Rights Act uh now according to a recent article nearly a third of the land related conflicts are in parli constituencies when the implementation of a particular act known as a forest Rights Act is a very very important electoral issue now this is very important for your prelims with reference to Indian poity and governance many questions have come in prelims and also with respect to GS2 where we have to look at the various laws regulations bodies set up for the vulnerable sections of the population particularly when we talk about the tribal groups and the people who live in the forest areas in general now we have to understand this act first and then we have to look at the various issues now we have to understand that the forest areas are consisting not of only forests and animals and wild animals there but also there are many people belonging to the scheduled tribes and other kind of people who have been resident in the areas of Forest for more than three generations or say 75 years so under this Forest Rights Act the main purpose of this act is actually to recognize these kinds of people to recognize them and give them certain kinds of rights which we know as Forest rights now we have to understand the kind of rights which are given firstly the ACT is guaranteeing the title rights to the tribal populations by title rights we mean the ownership rights of the particular tribal people and the other Forest dwelling communities now they will be given the title rights up to four hectares in the forest lands on which they have been traditionally been resident of next apart from the ownership acts apart from the ownership rights they will be also having some used rights of what of the various Forest resources such as the leaves such as the trees such as the wood that we get or the various kinds of forest produce which we also know as the minor Forest produce this is also legally sanctioned under the F act next we also find with respect to grazing areas fishing activities so every kind of rights with reference to exploiting the forest resources are available under the seam next with reference to any activities we say any activity taken by the government for the conservation of wild animals for example the cheetah the tiger the elephant or say for example for the development of private sector such as setting up tourist Resorts and so on so these activities directly and indirectly affect the tribal people also so to rehabilit them to give relief to them the ACT also says that there must be certain kind of compensation there must be Inu conservation of these people and their rights and finally the forest management rights with reference to protection conservation and regeneration of community Forest resources must be also accorded to the people here now the ACT generally identifies the rights that might be given to two classes of the people that is firstly the scheduled tribes and the other traditional forest dwellers residing in the forest areas for around 75 years or three generations prior to December 13 2005 and here we have to understand that the main agency of you know proposing advising and recommending the forest rights is the grah Sabha so the grah Sabha is the main Agency for according these rights and accordingly the grah Sabha gives two kinds of Rights according to the various classes of the people firstly individual for its rights that is given to individuals say one family two family and so on and secondly Community for its rights these rights are given to a entire tribal population or a particular tribal area or a forest area and however much the number of people will be in that particular area all of them will be given collectively Forest rights now there are some issues here according to this article according to land conflict watch one third of the entire conflicts within this particular framework of this act is actually taking place in areas where the main areas are actually having issues of uh you know implementation of forest Rights Act and these are also as where Forest Rights Act and the Implement implementation issue is also an electoral issue too now there have been around 117 conflicts related to this particular Forest conflicts and this conflict is taking place over say around 2.1 lakh hectares of forest land and this directly indirectly also involves around 6.1 lakh people and out of this we find that the most of the people and also the most of the rights under the forest Rights Act directly indirectly impacts Maharashtra odisa and madhia Pradesh States why because around 20% of the people right are eligible for the forest Rights Act here and most of the conflicts also take place here then there's one more important data that is a 40 44% of the 117 conflicts which take place are generally uh you know revolving around issues such as conservation projects or commercial plantations or issues related to Administration right or other major issues such as legal protection of our rights forced evictions and Etc so these are the various issues due to conflicts takes place between the government or say the private sector and the forest dwellers and this was actually beautifully portrayed in two movies firstly sheny and Jim now I encourage all my students to generally watch these kind of movies because these are very very provoking movie when it comes to the issues of the local people and here if you have watched uh these movies please do mention in the comments what is the main thing that you have learned from these movies very very important one okay next we find that according to the ministry of tribal Affairs around 2.45 million titles have been accordant now what are titles the ownership the land ownership documents the legal documents which have been given to the people but this is actually 50% less than the total files applications which have been actually given to the ministry for land rights uh you know recognition and also 34% have been rejected so we find that these people do not even have access to land and resources and so on next we find there is also lack of awareness and capacity of the Dwellers with reference to the various tribal population they do not even know that f is a particular act that is for their Safeguard next the officials also not train themselves to know fully about the provisions of this act then the Civil Society organizations such as the NOS also they have not been able to fully help the people with respect to this next there is an industrial lobby with respect to commercial plantations with respect to tourism activities so they lobby with the government to give them various privileges next there are some people who are excluded from the benefits of these act such as a women nomadic tribes pvgs the particularly vulnerable tribal groups shifting cultivators because they are Loosely not even coming under this act so hence they're also excluded from the ownership or title rights also we find sometimes the state government is overpowering the gr saas with respect to according of the various rights to the people and finally we find that sometimes we find that the community Forest rights are actually more given in frequency than the individual Forest rights this is at the sake of the individuals who do not even get their rights now here we must be taking some steps some concrete steps to strengthen the implementation of the forest Rights Act firstly we must be trying to speedily expedite the claims of the people with reference to their ownership if a particular tribal population or family is trying to approach the grsa for accordance of land rights we speedily approving the same next with respect to the rejected claims we must be also reviewing what were the causes that were rejected for next there is a particular scheme known as the PM J scheme implemented a Ministry of tribal Affairs which is trying to give not only legal status to the tribal populations or the tribal areas or the forestate areas uh here the main objective of the government is to give them a proper Dignity of Life via Paka houses motorable roads portable drinking water electricity and various other education and Health Services to the people because apart from ownership rights they must be also having a Dignity of life too and finally we have to also understand that there are various environmental acts such as which are which are directly and indirectly related to the forest conservation such as the forest conservation act Wildlife protection act the Environmental Protection act which have overlapping jurisdictions with the forest rights act so sometimes it has been seen that the central government and state government to promote Environmental Conservation they sometimes leave out the inter s of the forest dwellers and the tribal populations there so we must be also identifying the convergence and should be framing out the differences between the various acts and the legislations the next article is on the recent CPI or Consumer Price Index Trends which were released and also with respect to index of industrial production we'll be covering both of the Articles both of the two concepts in the same here now the context is that recently we have seen the inflation in India has eased to around 4.85 percentages and this is a very very good indicator because inflation is coming down over a period of time now inflation is a very very important topic for your prelims with reference to economic and social development and also with respect to gst3 Indian economy and issues now let us start with the definition of inflation inflation refers to the general rise in prices of various goods and services in a particular country in a particular year and when we talk about inflation we look at the prices of various goods and services which are rising over a period of time we do not look at only one good or service and their Rising price otherwise it is just a price rise inflation means there are various goods and services and all of their prices are rising in a period of time and when we look at the prices of various goods and services we find that we find the prices of the goods and services at our markets and India we measure inflation in two types of markets first in the wholesale markets where we look at the inflation in the wholesale Goods only not the services and also we find inflation and majored inflation in the retail markets and when we measure inflation in retail markets we look at the goods and services both the inflation that is taking place within them okay and here when we talk about Consumer Price Index we're actually talking about retail inflation it is measured by the NSO under the mosp and here the base year that the MOs has taken is 2012 that means the prices that took place that were actually in place in the markets in 2012 we're actually comparing comparing the prices with the same period of time in 2024 and for the calculation of CPI we are taking around 229 items and is and that item or the amount of inflation in those items are represented in three ways firstly the combined CPI combined inflation where we find this is the inflation which is prevalent at all India level that is is combining both the rural inflation and the urban inflation and apart from the combined inflation we also have the urban and the rural CPI separately and when we talk about this 220 and items we have sprayed out these items across various categories food and beverages P tobacco and intoxicants clothing uh foodware housing fail and light miscellaneous goods and services so these are the various categories in which we can feed the inflation uh categories in and also inflation is a very very important policy measure for The Reserve Bank of India because the Reserve Bank of India has something which we know as a monetary policy committee it tries to maintain the inflation in India in the band of of 4 plus- 2 percentages that means the minimum inflation that can take place in India is 2% maximum is 6% and inflation in India must be somewhere between this that means there must be must not be deflation in the economy that is below 2% and must not be too much of inflation in the economy that is above 6% so there must be a balance in the economy so far and how does the monetary policy committee combat the same or say combat high amount of inflation by using repo rates by using using repo rate the central bank or the RBI can manage the money supply in the economy if there is too much of money supply there will be high inflation if there is low money supply there will be low inflation and accordingly if there is inflation the repo rates generally rise and when there is deflation the airort generally reduces and with reference to this particular thing the RBI uses the CPI combined for its policy measures now when we look at the recent Trends we find that inflation over a large amount of items such as the food clothing housing fill and general goods and services in all across this categories we find that the inflation has fallen that means it is a good news that the prices of the goods and services are falling down but it is you know there is one item that is an exception to this trend that is food and beverages you see across all these figures we find the inflation figures are below 6% right but with reference to food and beverages the inflation is still high that means the food inflation is still high and also across this basket of various goods and services we find that there are two Commodities such as food commodities and fuel Commodities which are very very volatile in the markets because Fuel and food they are impacted by say geopolitical crisis and weather events respectively so that is we find we have to you know sometimes to calculate the real rate of inflation which we know as core inflation we have to minus the volatile items from something which we know as headline inflation now headline inflation is nothing but the total amount of inflation in the country according to CPI and when we minus or say subtract the volatile items we get something which we know as code inflation so even in case of code inflation we see that the code inflation is actually very very low at is at uh 3.25% now in the same news article we have another important index mentioned index of industrial production now this index is measuring the IND industrial production for various goods and services in a particular period of time in a particular country now this is again released by the NSO and here this is the report which is carrying a lag of around six weeks that means it is carrying the data of production with a lag of six weeks and what is it measuring see the highest amount of vitage in the iip is given to the manufacturing sector then it is given to the mining sector and the electricity sector so these are the sectors which will be measuring the industrial production activity and here we have also various use based sectors too such as capital goods consumer goods non-durable consumer goods and so on now with respect to iip we find that the mining industrial activities have increased electricity industrial activities have increased and other General industrial activities have increased so it is a very good news but with reference to manufacturing uh industrial activities the iip index has generally decreased the same is the case with the capital goods too right now here we find that if we look at both CPI and iip in this graph in the diagram here we find that the iip has been increasing since the beginning of this year and the inflation is also decreasing since the beginning of a year so this is coming as a twin relief to the economy that means economy is actually seeing lower inflation a relief from higher prices and economy seeing higher industrial activity are relief from unemployment because more uh industrial activity typically offers more and more jobs to the people so these are all the important things that you need to cover from these articles from the very Basics to the very advanced concepts here in the next one we'll be looking at a very very important and interesting geophysical phenomena that takes place among some exceptional volcano that is volcanic Vortex Rings recently Mount Edna emitted something which we know as volcanic Rings now students smoking is very very harmful for your health but here it seems that the volcano is smoking also here right but that doesn't mean that you will be starting smoking okay see it is a very very important topic for your prelims for Indian and world geography and gs1 where we have the term volcanic activity explicitly mentioned in the syllabus and that is why it is also asked again and again in the means and also in prelims 2 regarding various volcano and here the main thing that we have to understand here sometimes within the layers and within the Chamber of volcano sometimes water vapor H2 or various other gases can be stuck so this is represented by this gas bubble right so what happens is that when this material is stuck we know that the magma magma at the bottom is already super hot and when it is super hot it is also heating the gas bubel of the H2O it somehow wants to escape the volcano and when it escapes from the volcano it does very very rapidly and through a very very small surface area such as a vent compared to the size of the volcano compared to the magma chamber between right we find that the crater size is very small so when this gas bubble tries to exit the volcano at a very rapid speed these kind of rings are formed due to various aerodynamics principles of physics now those principles you do not need to worry about you just need to understand that this is generally taking place due to large amount of water we bu up and due to a circular per perfectly circular vent on Mount ETA right and here many geologist on many experts have told that this is not a sign of this volcano becoming very very explosive and eruptive right this means that there are some layers of rocks which are lying above the volcano or say below the crater of the volcano and here that is why the gas bubble is trying to escape in this amount of say rapid mana and here we have to look a little bit about more about Mount Etna see Mount Etna is located just about the eastern coast of CIS of Italy and here this is a very very ancient kind of volcano it dates back to around 1500 BC and it is Europe's most active volcano even the largest in the world it has five craters to let you know right even volcanoes can have more than two craters right and we have to understand that it is not the only volcanoes of this nature we have the mount Kila volcano on Hawaii dukono in Indonesia Santa Maria and Guatemala and yasur in vanat which are also equivalently as eruptive as this volcano in the final article we'll be looking at a very important concept known as double taxation avoidance agreement where India and mishas recently revised this tax treaty to plug tax evasion this a very very important topic for your prelims with reference to economic and social development and GS3 Indian economy and various issues now to understand this understand a very simple example imagine an Indian company imagine an Indian company who sells books and it sells books in India and also it sells books in the rest of the world such as the us right now what happens when we talk about double tax is that for example this Indian company has sold books of say for example $1,000 in the US so obviously this company have to pay this Indian company in USA they have to pay some tax in the US also so for example the tax is 20 uh% so they have to pay around say $200 right right now after paying tax they have some money left that is say around $800 so $800 what this Indian company will be doing obviously it will be sending back its profits to India but now Indian government will be since this is an income for you you have to also pay an income tax here so the com so India told that okay you have to pay another 20% now the company is telling that I have already paid taxes in the US you look at that now you are again telling me to pay tax in India for the same book if I would have sold the same in India then I would have paid only 20% tax what is the incentive for me to export my book uh abroad to us and sell there and pay tax there whether on one side you are telling that you want to increase your exports on one side you are telling that you have to pay tax in India again so you see that the company sometimes it was it was seen earlier the companies used to pay double tax both in us and India or say in other other countri this is for just for the SE of for example similar is a case of this kind of concept this means that a company should be or say not a company only a person or anyone who is doing business or who is doing economic activity they should be paying taxes for only one time and only in one jurisdiction that is say either this tax can be imposed in the US or this tax can be imposed in India but not both so this is actually a treaty which is signed between two or more countries which is divided into various categories of economic activities such as Services salaries remuneration real estate capital gains such as the gains that you have on stock markets bonds and other kind of assets right also the banking services such as demand deposits fixed deposits so in all these things tax should be implied at only one source that is only one country right and at only one period of time one time and India has currently DT with more than 80 countries such as modish Australia UK UA USA and so on and here the key benefits firstly it is preventing double taxation it is reducing the tax rates for the companies and the individuals and also if the companies and the individuals have used some raw materials they can also get the taxes that they pay pay they have paid for the raw materials right that is known as tax credit so it is also facilitating Easy Tax Credit between the Nations but here there is one issue you see DTW is a very very good thing for any company or a particular person also for the exports of the country but the thing is that like every good thing in the earth and in the world and in life there are people who misuse good things also now imagine imagine the case of foreign portfolio investments in the country now in with with reference to foreign portfolio investment these people these investors they do what they come into India from various parts of the world generally the prosperous parts of the world Japan Germany USA UK and so on so for India the major sources of FPA fpi is generally the US followed by Singapore Luxembourg and then modicious right you see that these people come into India for short-term profit if they get they easily sell out their stocks and whatever assets they have and they return back the profits to their Nations now imagine again an example here imagine the case of morius and India now if you buy a particular Company stock in India and have a particular profit on this and sell it again say for example the government will be implying a 10% capital gains tax right with reference to mishas modish is a small country does not need many taxes right say for example mishas are stld it will be Ling 2% tax year now what various companies do they involve they involve some shell companies now what are the shell companies the investors tell that it is the shell companies who invest their money in India right they do not invest directly it is their shell companies which do not even have existence of any office employees or everything anything it is actually existing on papers now what these people do they set up shell companies in maius right they route their money via the shell companies in Indian stock markets in Indian investment real estate and so on so it looks that the investment or the money is coming from maius right to India the investor can be from the USA right but they are not uh you know filing directly any investment from the USA because in in USA for example again the capital gains tax is 10% but in maius the capital gains tax is 2% so if they sell any asset or sell any stock any bond whatever right they have to pay only 2% and that to in maius because India and Modas have a dwaa so these companies or the individuals they misuse the DT provision by routing their Investments via shell companies by investing in India and they cheat on the effective tax they that they have to pay this is actually what we know as tax avoidance tax avoidance is the clever use of various loopholes in taxations dtws and so on to actually evade paying the actual amount of taxes if these investors would have paid uh say taxes in India they have to pay only 10% but in macius it is 2% so different of 8% is the thing that they have saved right and that is actually not via any genuine Investments That is via shell companies and via the practice of tax Evas Investments means that for example a particular USA investor is particularly interested in an Indian startup and she wants the Indian startups to grow due to her Investments that is a true investment but what happens here is individuals who wants to avoid paying taxes now they cannot be class classified investment here when they want to take back their profits back that is actually using various loopholes and that is actually the main fun of this particular recent amendments that have been made to India modicious DTW now the government has told that there must be a principal purpose test that means any treaty benefits of this DTA between India modius they will be denied if obtaining them is the main reason for transaction that means I told you that if a particular person from the US is coming via macius into Indian startups or Indian markets Indian stock markets and investing them to avoid taxes they have to fulfill or pass this principal purpose tax right then they must be focusing on tax avoidance purposes these two countries they must be looking at the tax avoiding companies and the investors whose you know sole motto is not for long-term investment but for short-term profits and that to that to uh via this you know illegal and uh these kind of roots because ultimately we find that when they take back their profits back to their countries they also use havala networks or money laundering issues too so the impact on modicious investments from India and two and from the both of the countries would be that it is very unclear as of now because the policies policy of this recent amendment has come just now right and with reference to the potential issues coming in the future right these companies have to pass this principal purpose test and that is why it we can understand that this can lead to various Court Affairs and Court delays in the matters of investment and so on so this is also because they have to prove their business activity in micius and so on right so this is why we have to understand recently as of yesterday almost 8,000 CR rupees have been pulled out by the fpis from India back to macius because they do not want to you know fulfill this principal purpose test right and please do note these things down these terms in the news because these are asked increasingly by the upsc uh with reference to test your economic Affairs and your current affairs finally we'll be looking at four prelims Snippets starting with Central information commission we have to understand this recently the central information commission has pulled up the election commission of India for some issue related to electronic voting machines now this cic is an statutory body under the right to Information Act it is composed of the cic or Central information commissioner and 10 information Commissioners and they are appointed by the president under the advice of the Prime Minister leader of opposition the Lok SAA and a union cabinet minister the the the tenure that we that they can have is up to around 65 years or a term which has been prescribed by the union government the main objective is to receive inquire into any complaints from any citizens under the RTI act they will also be receiving and deciding upon the second appeals that are coming from the subsequent appeal ladder and also they are authorized to impose any fines and penalties on the civil servants who do not provide information under RTI act or they have been delaying information and finally they also have power of ordering any inquiry that is they exercise their Su Moto power they can do the same on their own terms and conditions in the next one we'll be looking at International Energy agency the origin can be trended back to the 1973 74 oil crisis and this was set up by the organization for economic cooperation and development the headquarters are at Paris there are 30 member countries all OCD members are there except Chile Iceland Israel Mexico and Slovenia and eight associate member countries are also they including India their main focus is actually to look at energy security imperatives policies fundings in the world and also to look at how clean energy transition or sustainability can be achieved in the world the report that they publish are world energy Outlook world energy investment report India energy Outlook report in the next one we'll be looking at small Finance banks these are the banks which gives financial services such as small loans savings insurance and other basic banking services to the lowincome individuals and underserved individuals or business enterprises such as small msme owners and so on they are allowed to accept demand deposits and time deposits they're allowed to lend that is give loans and credit cards and also they have to give minimum capital to risk weight assets ratio that is extra money that has to be kept aside for risk loans in the proportion of 15% the public banks in India they have to keep 12% all other Banks they have to keep 9% 75% of their adjusted net Bank credit or the total loans that they have given must be going to the priety sector lending that's Education Health women and empowerment startups renewable sectors and so on which are very very important for the country and 25% of the branches must be in the rural areas for period of 3 years and they also have to maintain at least 50% of their entire loan portfolio as micr finance and advances up to 25 lakh rupees and finally they are encouraged to use technology to reduce their costs and improve their efficiency online and finally we'll be concluding the entire discussion with t board of India because recently UPC has been asking many questions with reference to various Boards of uh you know various important major crops in the country now this is a statutary body which was set up under the T act in 1954 it is operating under the ministry of Commerce the headquarters are at Kolkata and the overseas offices are also based at Dubai and Moscow mainly to export to promote the export of tea in the world it is also uh functioning uh the as promoting tea cultivation and processing in the country providing financial and technical assistance for cultivation manufacturing and marketing and tea and also it is focused on export promotion of the tea and finally it is is also aiding research and development in the tea industry of the country now with this I conclude the discussion I thank you all for being a very very patient audience today I encourage you all to attempt the test which is following up all the best till we meet again thank you [Music] [Music] [Music] [Music] [Music] [Music]

Channel: Vajiram and Ravi Official

Views: 2,347

Keywords: ASER 2023, Forest Rights Act, Recent CPI trends, Volcanic Vortex Rings, Double Taxation Avoidance Agreement, Prelims Snippets Current Affairs Today, Daily Current Affairs, Current Affairs 2024, Newspaper Analysis Today, today news analysis, daily news analysis upsc, vajiram online classes, Indian express news analysis, the hindu newspaper analysis, hindu news analysis, newspaper analysis the hindu, newspaper analysis today indian express, March current affairs

Id: ocFhr_Tzelw

Length: 49min 41sec (2981 seconds)

Published: Sat Apr 13 2024