11 November 2022

DAILY CURRENT AFFAIRS ANALYSIS

1 – Current Account Deficit: GS II – Topic  Indian Economy

Context:

• In contrast to the lowest consensus estimate of 3.5%, the State Bank of India has predicted a smaller current account deficit for this fiscal year of 3%, citing rising software exports, remittances, and a potential $5 billion increase in foreign exchange reserves through swap agreements.

The current account deficit is what?

• When a nation’s total imports of goods and services exceed its total exports of those same goods and services, a current account deficit results.
• The trade balance is the difference between imported and exported goods. The “Current Account Balance” includes the “Trade Balance.”
• Excessive imports of gold and oil are the main factors contributing to the CAD’s extension, according to an earlier report from 2021.

About the balance of payments:

• A country’s balance of payments (BoP) is a comprehensive analysis of all of its economic transactions with the rest of the world over a given time period, usually one year.

Calculation of BoP Goals:

• indicates a nation’s financial and economic standing.
• can be used as a barometer to assess whether a nation’s currency is appreciating or depreciating.
• helps the government make decisions about its trade and budgetary policies.
• gives crucial data for analysing and comprehending a nation’s economic interactions with other nations.

The BoP’s components are:

• Economic transactions between a country and the rest of the world are categorized into three categories: current account, capital account, and mistakes and omissions. Changes in foreign exchange reserves are also shown.
• Present Balance: It displays visible and invisible, as well as visible (also known as items or merchandise, which indicate trade balance), including export and import (also called non-merchandise).
• Services, transfers, and income are a few examples of Invisibles.
• A country’s capital account details its capital outlays and income.
• It provides a broad overview of the net inflow of governmental and private investment into an economy.
• The capital account includes external commercial borrowing, overseas direct investment, and foreign portfolio borrowing (ECB).
• Errors and Omissions: The balance of payments could occasionally be out of balance. The errors and omissions made by the BoP demonstrate this imbalance. It illustrates how the nation is unable to fully account for all international transactions.
• Foreign Exchange Reserve Movements: The Reserve Bank of India’s foreign assets and Special Drawing Rights (SDR) balances are both included in the movement of reserves.
• The BoP account could have a surplus or a deficit overall. With funds from the Foreign Exchange (Forex) Account, a deficit may be closed.
• A BoP crisis occurs when there are insufficient foreign currency reserves.

Source The Hindu

 2 – Hypersonic Ballistic Missile: GS III – Topic Science, and Technology

Context:

• According to comments made by the Revolutionary Guards’ aerospace commander and reported by the semi-official Tasnim news agency, Iran has developed a hypersonic ballistic missile.

About:

• The speed of sound, or Mach, is multiplied by five or more to reach hypersonic speeds. Hypersonic speed and modern technology.
• A plane’s speed is expressed in terms of its Mach number, where Mach 1 corresponds to the airspeed of sound, or 343 metres per second.
• Types (2):
• The only difference between hypersonic cruise missiles and regular cruise missiles is speed. Hypersonic cruise missiles employ rocket or jet propellant throughout their flight.
• HGVs: Hypersonic Glide Vehicles These missiles are launched toward their target by ascending into the air on a standard rocket.
• The primary technology of the majority of hypersonic vehicles is an air-breathing propulsion system known as a scramjet.
• Hypersonic systems are quite expensive because this is a very complex technology that also needs to be able to withstand high temperatures.

India’s advancement of hypersonic technologies:

• India is also engaged in hypersonic research.
• India has already demonstrated its prowess in the field of space assets by carrying out an ASAT test as part of Mission Shakti.
• Both DRDO and ISRO have created and tested hypersonic technologies.
• The hypersonic technology demonstrator vehicle (HSTDV), which has a top speed of six times the speed of sound, recently underwent successful flight testing by the DRDO.
• Hyderabad now has a Hypersonic Wind Tunnel (HWT) testing facility thanks to the DRDO. It is an enclosed, pressure-vacuum-driven, free jet facility that can simulate speeds of up to Mach 12.

Air Breathing Propulsion System:

• These systems burn the fuel that is stored on board using atmospheric oxygen, which is present up to around 50 km above the surface of the earth. The system is thereby substantially lighter, more effective, and more economical.
• The Dual Mode Ramjet, Scramjet, and Ramjet are examples of air breathing propulsion systems (DMRJ).

Source The Hindu

3 – NHRC: GS II – Topic Statutory and Non-Statutory Bodies

Context:

• India acknowledges the importance of journalists, activists, and human rights defenders in a democracy, but Tushar Mehta, the solicitor general, insisted that their actions must also be legitimate. On Thursday in Geneva, he said this in an address to the Human Rights Council (HRC). Live coverage of the event was available.

About:

• It serves as a watchdog for the country’s human rights, including those to life, liberty, equality, and the dignity of the person protected by Indian courts and guaranteed by the Indian Constitution.

Establishment:

• It was created on October 12th in accordance with the 1993 Protection of Human Rights Act (PHRA). The Protection of Human Rights (Amendment) Act of 2006 and the Human Rights (Amendment) Act of 2019 both made changes to it.
• It was created in accordance with the Paris Principles, which were adopted in December 1993 by the UN General Assembly after being accepted in Paris in October 1991 for the goal of promoting and safeguarding human rights.

 Composition:

Major Players:

• There are five persons on this board, including the chairman. A chairman is a former member of the Indian Supreme Court or Chief Justice of India.

Appointment:

• The Speaker of the Lok Sabha, the Deputy Chairperson of the Rajya Sabha, leaders of the opposition in both Houses of Parliament, and the Union Home Minister make up the committee, which the President appoints as its chairman.

Tenure:

• The chairman and members hold office for terms of three years, or until they reach the age of 70, whichever comes first.
• In extreme cases, the President has the authority to oust the chairman and any other member from their positions.

Role and Purpose:

• It operates in a judicial way and has all the authority of a civil court.
• Any officer or investigative team of the federal or state governments may be used to look into allegations of violations of human rights.
• A year from the purported date of the alleged human rights violation is the maximum amount of time that the Commission may investigate a matter.
• The commission’s duties are primarily advisory in nature.

Source The Hindu

4 – Appointment of Governors: GS II – Topic Constitutional Provisions

Context:

• As disagreements and even standoffs between state administrations and governors intensify, the Raj Bhavan’s function is once more being questioned. Margaret Alva and M.R. Madhavan discuss the role and conduct of governors, their relationships to the federal and state governments, and whether chief ministers should have a say in who runs their states in this debate, which is moderated by Sonam Saigal.

About Governor:

• The state executive is comprised of the Governor, the Chief Minister, the Council of Ministers, and the Advocate-General of State. The governor is the state’s president. Articles 153 through 167 of the Indian Constitution contain provisions pertaining to the state governments of the country.

Appointment of Governor:

• The Indian President appoints the governor of each state by a warrant carrying his signature. Each state’s governor must be selected by the federal government.
• In contrast to presidential elections, there are neither direct nor indirect elections for the role of governor.
• A union official is ineligible to serve as governor under the autonomous constitutional position. The union government is not the governor’s employer and is not responsible to it.
• The Canadian system of government is the model for India’s appointment of governors by the President and nomination of governors by the Union.

How many years is the governor’s single term?

• The Governor is appointed by the President, hence there is no established term limit. Despite the fact that the President is given the ability to remove the Governor, the constitution doesn’t specify why.
• A governor may be transferred from one state to another by the President. He might be reappointed as well.
• An interregnum is not allowed; nevertheless, a governor may serve out the final five years of their term before a new governor enters the office.
• The Chief Justice of the High Court of the relevant state may also be appointed as the Governor pro tem, if and when the President deems it essential. (For example, in the event of the governor’s dying, the Chief Justice of the HC might be named governor.)

Source The Hindu