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INSIGHTS
12/1/2016
Paper 3 Topic: Effects of liberalization on the economy, changes in industrial policy and their
effects on industrial growth.
The United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) said, in its recently
released Asia-Pacific Trade and Investment Report 2016, that international and intra-regional trade costs of India
remained higher compared with the trade costs of best-performing economies in Asia and the Pacific, although a
declining trend has been observed since 2009.
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Concerns:
According to the report, a worrying trend is the increased usage of restrictive trade policies, especially non-tariff
measures, within the Asia-Pacific region, which is partly driven by past distortive trade measures and current
excess capacity in several key sectors. Additionally, the region is seeing a proliferation of preferential trade
agreements (PTA), with Asia and the Pacific rim contributing to almost 63% of world PTAs, curbing a momentum
towards region-wide free trade.
Sources: the hindu.
In the wake of the brazen Nagrota attack, India and Afghanistan are planning to seek to isolate Pakistan on terror at
the upcoming two-day Heart of Asia conference in Amritsar as the two countries have pitched for a regional
counter-terror framework to effectively deal with the menace.
Finance minister Arun Jaitley will lead the Indian delegation at the two-day Sixth Heart of Asia (HoA)
conference to be held in Amritsar.
Afghanistan has been pushing for finalising an effective counter-terror framework to deal with terror at the
conference which will be attended by representatives from over 30 countries including China, the US,
Russia, Pakistan and Iran.
Background:
Tension over the cross-border terrorism has increased between India and Pakistan in the past few months. This is
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also seen as the biggest challenge to peace and security in the region.
Paper 2 Topic: Government policies and interventions for development in various sectors and
issues arising out of their design and implementation.
The Delhi High Court has issued notices to the Centre, the Airports Authority of India and the Directorate General
of Civil Aviation as the Federation of Indian Airlines (FAI) sought a stay on the governments notification on levy of
Rs.7,5000 to Rs.8,500 per flight operated by Indian airlines to create a regional connectivity fund (RCF).
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The court has sought the Centres response on the plea challenging the levy of tax and the UDAN scheme.
The FAI has sought quashing of the October 21 notification, by which a rule for such a levy was brought into
the Aircraft Rules, 1934.
Paper 2 Topic: Appointment to various Constitutional posts, powers, functions and responsibilities
of various Constitutional Bodies.
The Supreme Court has ordered all cinema halls across the country to play the national anthem before the
screening of films and that all present must stand up in respect till the anthem ended.
The court has also asked the Cinema halls to display the national flag on screen when the anthem is played.
Why such move?
According to the court, the practice would instil a feeling within one a sense of committed patriotism and
nationalism. Also, the protocol of showing respect and honour to the anthem and flag is rooted in our national
identity, integrity and constitutional patriotism.
The court observed that it is the duty of every person to show respect when the national anthem is played or
recited or sung under the Prevention of Insults to National Honour Act of 1951.
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What else?
In its interim order, while awaiting a detailed
response from the Centre, the court has
issued a complete ban on the commercial
exploitation of the national anthem and the
flag.
The court also banned dramatisation of the
anthem or it to be used in any part of any
variety shows or for entertainment
purposes.
It also banned the display, recitation or use
of the abridged version of the national
anthem.
Sources: the hindu.
The Union Cabinet has given its ex-post facto approval to the negotiating position adopted by the Government of
India at the recent Meeting of Parties (MoP) to the Montreal Protocol of the Vienna Convention for Protection of
Ozone Layer that took place in October, 2016, in Kigali, Rwanda.
The Cabinet has also approved the proposal of the Ministry of Environment, Forest and Climate Change to
argue for adoption of an appropriate baseline years from out of 3 options within a range of 2024 to 2030
with freeze in a subsequent year.
The flexibility of using any of the options within this range with a combination of the features of the proposed
options in consultation with the Government has also been approved.
Key facts:
During negotiations held at Kigali India successfully negotiated the baseline years and freeze years which
will allow sufficient room for the growth of the concerned sectors using refrigerants being manufactured
domestically thus ensuring unhindered growth with least additional cost and maximum climate benefits.
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It was agreed at Kigali that there would be two set of baselines or peak years for developing countries and
India will have baseline years of 2024, 2025, 2026. This decision gives additional HCFC allowance of 65%
that will be added to the Indian baseline consumption and production.
The freeze year for India will be 2028, with a condition that there will be a technology review in 2024/2025
and, if the growth in the sectors using refrigerants is above certain agreed threshold, India can defer its
freeze up to 2030. On the other hand, developed countries will reduce production and consumption of HFCs
by 70% in 2029.
As per the decisions taken in Kigali, India will complete its phase down in 4 steps from 2032 onwards with
cumulative reduction of 10% in 2032, 20% in 2037, 30% in 2042 and 85% in 2047.
Kigali conference:
The negotiations at Kigali were aimed at including Hydrofluoro Carbons (HFCs) in the list of chemicals under the
Montreal Protocol with a view to regulate their production and consumption and phase them down over a period of
time with financial assistance from the Multilateral Fund created under the Montreal Protocol.
The Kigali amendments to the Montreal Protocol will, for the first time, incentivise improvement in energy efficiency
in case of use of new refrigerant and technology. Funding for R&D and servicing sector in developing countries has
also been included in the agreed solutions on finance.
Sources: the hindu.
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