24 October 2022

DAILY CURRENT AFFAIRS ANALYSIS

1 – India – Saudi Arabia Relations: GS II – International Relations

Context:

• On his route to Indonesia in the middle of November, Mohammad bin Salman (MbS), the Saudi Crown Prince and Prime Minister, is likely to make a stop in India to meet with Prime Minister Narendra Modi. Both presidents are anticipated to leave for Bali, where the G-20 meeting will take place from November 15 to 16, following their brief visit on November 14.

History:

• The first trade and cultural contacts between ancient India and Arabia were formed about the third millennium BC.
• By the year 1000 AD, the Arabian economy was based on the thriving trade relations between Arabia and southern India.
• Arab traders had a tight hold on the spice trade between India and Europe before the rise of European colonial powers.
• India was one of the first nations to establish links with the Third Saudi State.
• After the two countries established diplomatic ties in 1947, senior officials from both governments exchanged visits. While Prime Minister Jawaharlal Nehru visited the Kingdom in 1956, King Saud visited India in 1955.

What is the Strategic Partnership Council between Saudi Arabia and India?

• In response to the Indian Prime Minister’s visit to the Kingdom of Saudi Arabia in October 2019, the Strategic Partnership Council was created.

These are its two primary pillars:

• Committee on Politics, Security, Social Welfare, and Culture
• Committee on Investments and the Economy
• Following the UK, France, and China, India is the fourth nation with whom Saudi Arabia has developed such a strategic partnership.

Economic and trade ties:

• Saudi Arabia, which supplies more than 18% of India’s crude oil needs, is the country’s fourth-largest trading partner after China, the US, and Japan.
• Iraq was formerly India’s main source of crude oil; Saudi Arabia now fills that position.
• Saudi Arabia exports a lot of LPG to India.

Saudi Arabia and India have cultural similarities:

• By signing an MoU on Yoga Cooperation in 2021, the Saudi Ministry of Sports and the Ministry of AYUSH in India made it possible for the Kingdom to put official Yoga standards and programmes in place. This was the first country in the Gulf to implement these rules.
• The largest foreign-born population in the Kingdom is the roughly 2.2 million-strong Indian community.
• An important element in the bilateral relations between Saudi Arabia and India is the yearly Hajj pilgrimage.

Immigrants from India:

• The largest foreign-born population and “most favoured community” in Saudi Arabia is the 2.6 million-strong Indian community. They are known to be considerate, disciplined, intelligent, and law-abiding.

Naval Training:

• Al-Mohed Al-Hindi Drill, a joint naval exercise between Saudi Arabia and India, was held in 2021.

Way Forward:

• By persuading Saudi Arabia to utilize its sway over Pakistan to limit the Taliban in Afghanistan, India may be able to use its close connections to Saudi Arabia to its benefit.
• Southwest Asia will be impacted by cooperation because both economies will benefit.

Source The Hindu

2 – Banking Regulation Act: GS III- Indian Economy

Context:

• The Reserve Bank of India (RBI) is currently keeping a careful eye on the private bank Dhanlaxmi Bank in Thrissur in order to increase public scrutiny of the bank’s financial status. In response to a protracted court battle between a group of minority shareholders and the bank’s management over incomplete financial disclosures, rising costs, and general business mismanagement, the RBI rendered this decision. Minority shareholders have asked for an extraordinary general meeting to be held next month to explore whether to restrict the chief executive officer’s discretionary spending power in light of the bank’s deteriorating capital adequacy condition.

What exactly does the Banking Regulation Act of 1949 mean?

• The Banking Regulation Act of 1949 is a law. In addition to providing information on a variety of subjects, including Indian bank administration, operations, and licencing, it also oversees bank activities. On March 16, 1949, the Banking Companies Act of 1949, which had been approved, came into force. On March 1st, 1966, the Banking Regulation Act of 1949, commonly known as the Banking Companies Act of 1949, came into force.

The following powers are granted to the Reserve Bank of India by the Act:

• Before banks may be licenced, shareholder ownership and voting rights must be regulated.
• to monitor board and management selections.
• to create guidelines for bank operations.
• to provide standards for controls, mergers, liquidations, and audits.

The 1949 Banking Regulation Act has been modified:

• Initially, financial institutions were the main targets of the bill. When Section 56 of the Act was added in 1965, cooperative banks came under its jurisdiction. Cooperative banks, whose operations are restricted to a particular state, are established and managed by state governments. However, the RBI is in charge of granting licenses and supervising company activity. The Banks Act was a supplement to previous banking laws.
• The Lok Sabha recently approved a change to the 1949 Banking Regulation Act. The Banking Regulation (Amendment) Ordinance will be replaced by the act, which has the same stance and will be published in June 2020.

Source The Hindu

3 – 5 G – GS III – Science and Technology

Context:

• The launch of 5G services was announced by Indian Prime Minister Narendra Modi on October 1. Nearly three weeks after Mr. Modi launched 5G services in India, the majority of mobile phone users who have a 5G-enabled handset and are in areas where the services have been granted could have to wait until December to benefit from the high speed internet.

About:

• The 5G network can carry massive volumes of data at incredibly fast rates because to the millimeter-wave band (30-300 GHz), which has a very high frequency and minimal interference from surrounding broadcasts.
• The term “5G” refers to the most current advancement in mobile broadband Long-Term Evolution (LTE) networks.
• In the 5G high-band spectrum, 20 Gbps of internet speed has been tested (gigabits per second).

What state is the globe in at the moment?

• Commercial 5G networks are anticipated to support 1.1 billion mobile connections by 2025, accounting for 12% of all connections globally, and generate up to US$1.3 trillion in revenue for operators. In 2020, the first 5G networks for business were launched.
• 50 American cities have 5G service already.

Is India capable of making the switch to 5G?

• 13 Indian cities will receive 5G service by 2022, according to the DoT. Only a handful of them are Delhi, Mumbai, Kolkata, Chennai, Gurugram, Chandigarh, Bangalore, Hyderabad, Pune, Lucknow, and Gandhinagar.

The following advantages of 5G are available to India:

• The new generation mobile network has the potential to significantly alter the Indian economy and give a linked and autonomous system a whole new look when combined with artificial intelligence.
• The likelihood that those who are unemployed or underemployed might find meaningful employment may increase tenfold as a result of 5G networks, which will also make it easier to access services like mobile banking and healthcare.
• By empowering individuals and businesses, Indian government officials are able to build cutting-edge, intelligent cities.
• Benefiting from the conveniences and socioeconomic advantages that come with a more developed, more data-intensive digital economy is thus possible for both individuals and companies.

Issues with the introduction of 5G:

• essential elements A significant upgrade to the communication infrastructure is needed to accommodate 5G. Because sending data across longer distances is 5G’s primary shortcoming, the current infrastructure must be improved to accommodate 5G.
• possessing effective financial management In order to switch from 4G to 5G technology, consumers must pay for an upgrade to the newest cellular technology.
• Capital shortfall The inability of capable telecom operators to provide funding is impeding the spread of 5G spectrum (like Bharti Airtel and Vodafone Idea).
• untimely adoption Countries in the Asia-Pacific region like India, Bangladesh, and Indonesia will experience a reduction in service revenue as a result of their slower adoption of 5G technology.

Moving ahead:

• India’s top priorities right now are choosing the cities for the 5G rollout, creating an investment strategy, choosing the end users and population that must be covered, identifying the current network and operators, lowering the digital risk and pricing based on consumption of various industries, and choosing the end users and population.

 Source The Hindu

 4 – NGT: GS II – Statutory & Non-Statutory Bodies

Context:

• According to the National Green Tribunal, the Pakhro tiger safari project inside the Corbett Tiger Reserve has been postponed till the Central Committee files its final judgements over the allegedly illegal removal of trees inside the reserve for the project (NGT).
• About NGT:
• It is an expert organisation established in compliance with the National Green Tribunal Act of 2010 to address environmental preservation, forest conservation, and other issues related to natural resources quickly and effectively.
• The NGT must make a decision within six months of receiving an application or appeal.

The organizational structure of the National Green Tribunal (NGT) is as follows:

• The Tribunal is composed of the Chairperson, Judicial Members, and Expert Members.
• They are not qualified for reappointment once their five-year appointment expires.
• Before choosing the Chairperson, the Chief Justice of India confers with the Indian Central Government (CJI).
• The national government will set up a Selection Committee to choose the Judicial Members and Expert Members.
• Ten to twenty full-time judges and experts are required.

The following civil matters are handled by the National Green Tribunal (NGT):

• The Water (Prevention and Control of Pollution) Act was passed in 1974.
• The Water (Prevention and Control of Pollution) Cess Act was passed in 1977.
• The Act for the Prevention and Control of Air Pollution of 1981 was based on the Forest (Conservation) Act of 1980.
• Environment (Protection) Act of 1986
• The Public Liability Insurance Act was passed in 1991.
• The Biological Diversity Act of 2002

Some of the National Green Tribunal’s significant decisions include the following:

• The government of Odisha and POSCO, a steel manufacturer, signed an MoU to develop a steel project in 2012. NGT heroically breached the law in order to safeguard the nearby townspeople and woodlands.
• In 2013, the National Green Tribunal ordered the Alaknanda Hydro Power Co. Ltd. to compensate the petitioner in the Uttarakhand floods case, especially emphasising the “polluter pays” principle in this situation.
• A 2015 NGT order states that all diesel vehicles older than ten years would no longer be permitted to run in Delhi-NCR.
• A panel of the National Green Tribunal judged the Art of Living Festival on the Yamuna Food Plain to have violated environmental rules in 2017 and assessed a penalty of Rs. 5 crore.

Source The Hindu