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CA - June-2019 PDF
CA - June-2019 PDF
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CURRENT AFFAIRS
JUNE 2019
2.2. G-20
Why in news? Group of Twenty (G-20)
th
Recently, the 14 G-20 summit was • It is an international forum for the governments and central bank
held in Osaka, Japan. governors from 19 countries and the European Union.
• The first G20 Summit was held in Berlin in December 1999 and was
Background hosted by the finance ministers of Germany and Canada.
• The G20 Summit on Financial • It was formed in 1999 to discuss policies relating to financial stability,
in the aftermath of the Asian Financial Crisis of 1997-1998.
Markets and the World Economy is
• Its agenda was expanded since 2008 including heads of governments
held every year to discuss the / heads of states as well as finance ministers and foreign ministers.
critical issues affecting the global • It thus, brings important industrialized and developing countries to
economy. discuss important issues in the global economy.
• The 2019 G20 Summit in Osaka • For the first time, India will host the annual G-20 Summit in 2022.
discussed eight themes which are
crucial to ensure Global Sustainable
Development, that are Global
Economy; Trade and Investment;
Innovation; Environment and
Energy; Employment; Women’s
Empowerment; Development; and
Health
Important takeaways for India at G-20
• Taxing global digital companies- India
has made a strong case for adoption of
"significant economic presence"
concept for taxing global digital
companies.
o India had introduced this concept
in the Income Tax Act for taxation
of non-residents in India or global digital companies.
• Change of base year to 2011-12 (from 2004-05) to capture the unorganized sector data from NSSO’s
Employment-Unemployment Survey (EUS) of 2011-12.
• Incorporation of Recommendations of System of National Accounts (SNA), 2008:
o Valuation of Gross Value Added (GVA) & Net Value Added (NVA) at basic prices
o Considering GDP at market prices as headline GDP instead of GDP at factor cost, to make the new
calculation more consumer-centric.
o Treating unincorporated enterprises maintaining accounts as quasi-corporations
• Incorporation of MCA21 database: Ensuring comprehensive coverage of corporate sector in mining,
manufacturing & services.
o Earlier, contribution of enterprises was assessed using Index of Industrial Production & Annual Survey
of Industries.
• Broader coverage of financial sector by including stock brokers, stock exchanges, asset management
companies, mutual funds and pension funds, as well as regulatory bodies, SEBI, PFRDA and IRDA.
o Earlier estimates primarily covered commercial banks and NBFCs.
• Adopted Effective Labour Input (ELI) Method: Earlier, Benefits of adopting new series
it was assumed that all categories of workers • India has been able to numerically improve its
contribute equally. New method addresses GDP estimates.
differential labour productivity issue by assigning • It would improve India’s sovereign credit rating
weights to different categories of workers based on and bring in more foreign investment.
their productivity. • It would also help India to claim bigger quota at
• Use of results of recent surveys and censuses: IMF
Current data from latest surveys have been o Quota determines country's subscription to
incorporated in the GDP calculation. E.g. Agricultural IMF, access to fund & voting rights to
influence lending decisions.
Census 2010-11; All India Livestock Census, 2012; All
o Current quota formula is weighted average
India Debt and Investment Survey, 2013 etc. of GDP (50%), Openness (30%), Economic
Issues in GDP Estimation in India Variability (15%) and International Reserves
(5%).
Concerns about the accuracy of India’s new GDP series
stems from legacy problems with the national accounts system in the country, which were either left
unaddressed or were aggravated during the base year change exercise in 2014-15.
• Volatile Revisions: The revisions (between advance estimates & revised estimates) in overall GDP numbers
tend to have an upward bias, which raises questions on the credibility of GDP data. Moreover, volatile
revisions create challenges for policymakers who make decisions based on initial estimates.
Why in news? • The following ‘5R’ principles lies at the heart of achieving
circularity in any product, process or service:
Recently at Circular Economy Symposium • Reduce: The emphasis is on achieving resource efficiency by
2019, NITI Aayog CEO said that Circular prioritizing use of regenerative and restorative resources.
Economy has the potential to generate 1.4 • Reuse: This encompasses two aspects – first is to reuse the
crore jobs in next 5-7 years. useful parts / components of a product, wherever possible
and second is to promote greater use of product-as-a-service
What is Circular Economy? through sharing platforms.
• The circular economy is a model of • Recycle: Focus is on creating a closed loop system to utilize
discarded material as a source of secondary resource,
production and consumption, which
through extensive recycling.
involves sharing, leasing, reusing, • Re-manufacture: To create new products by utilizing waste
repairing, refurbishing and recycling streams through cooperation and collaboration between
existing materials and products as long as multi-sector industry actors.
possible. In this way, the life cycle of • Repair/refurbish: The aim is to preserve and extend the life
products is extended. of a product that is already made by designing for the future.
• This is a departure from the
traditional, linear economic model, which is
based on a take-make-consume-throw away
pattern. It relies on large quantities of cheap,
easily accessible materials and energy.
Need for a Circular Economy
• Rise in consumerism: The robust economic
growth coupled with rising household
incomes have resulted in increased consumer
spending, which is expected to reach USD 4
trillion by 2025. The rise in consumerism has
led to more frequent replacement of assets
on account of increased spending power and
economies of scale.
7.5. OPTOELECTRONICS
Why in News?
Recently, researchers from IIT Madras have found a way of enhancing the optoelectronic properties of tungsten
diselenide.
About Optoelectronics
• Optoelectronics is the study and application of electronic devices and systems that source, detect and
control light.
• It is based on the quantum mechanical effects of light on electronic materials, especially semiconductors.
• It encompasses the design, manufacture and study of electronic hardware devices that, as a result, converts
electricity into photon signals for various purposes such as medical equipment, telecommunications and
general science.
• Some materials such as tungsten diselenide and molybdenum diselenide are being studied keenly for their
optoelectronic properties.
• A key property of these materials is photoluminescence, in which the material absorbs light, generating an
excited state, and then light of lower frequency is re-emitted.
Applications of Optoelectronics
• Solar Cells- that use Photovoltaic, which is the direct conversion of light into electricity.
• Laser Diodes- using stimulated emission are applied in compact disc (CD) players, laser printers, remote-
control devices, and intrusion detection systems.
• Light Emitting Diodes- using electroluminescence, emits light when current flows through it.
• Optical Fiber- where data is transmitted in the form of light particles or photons that pulse through a fiber
optic cable.
• Recently, United Nations Conference on Trade and 10.41.7. WORLD DRUG REPORT
Development (UNCTAD) released World Investment
Report 2019. • Recently, United Nations Office on Drugs and Crime
• India’s ranking as a source country for FDI – 10th. (UNODC) released World Drug Report, 2019.
• India attracted over 77% of the total FDI that came • According to the report the most widely used drug
to the South Asian region. Bangladesh got second worldwide continues to be cannabis, with an
largest FDI in the region. estimated 188 million people having used the drug in
the previous year.
10.41.5. WORLD POPULATION PROSPECTS • Globally, some 35 million people are estimated to
2019 suffer from drug use disorders and who require
treatment services.
• Recently, United Nation released its biennial World
• About UNODC: It was established in 1997 through a
Population Prospect report 2019, and highlighted
merger between the United Nations Drug Control
the trajectories and overview of global demographic
Programme and the Centre for International Crime
patterns and prospects.
Prevention.
• Highlights of the report o UNODC relies on voluntary contributions, mainly
o The world’s population is expected to increase from Governments, for 90 per cent of its budget.
by 2 billion persons in the next 30 years, from o It helps in multiple areas like organized crime
7.7 billion currently to 9.7 billion in 2050 and 11 and trafficking, corruption, drug abuse
billion by 2100. prevention etc.