Daily Current Affairs 28 September 2023 – IAS Current Affairs
Current Affairs 28 September 2023 focuses on Prelims-Mains perspective. Major events are :
Battle of Haifa (1918)
Source: Indian express
GS I: History
Overview
- News in Brief
- About Battle of Haifa (1918)
Why in the News?
The 23rd of September is designated as Haifa Day in commemoration of the city’s capture following a daring cavalry action by the 15th Imperial Service Cavalry Brigade during World War I.
News in Brief
- Every year on September 23, diplomats from India’s Embassy in Israel and Israeli government officials representing the municipality of the northern port city of Haifa gather at the Haifa War Cemetery.
- To pay respects to the Indian soldiers who were killed and wounded in battle, on foreign soil.
- This year, as part of a commemoration that has been followed for over a decade now, the Indian Embassy in Israel issued a statement saying India’s Ambassador and the Mayor of Haifa have paid tributes to the valiant Indian soldiers who liberated Haifa on Sep 23, 1918”, to mark the 105th anniversary of the Battle of Haifa.
About Battle of Haifa (1918)
- It took place on September 23, 1918.
- It was a major aspect of the First World War’s Sinai and Palestine Campaign.
- Rajput, Sikh, and other Indian soldiers that made up the Indian 15th (Imperial Service) Cavalry Brigade played a crucial part in the Ottoman Empire’s surrender of Haifa and Acre.
- The division was part of the Desert Mounted Corps and was crucial for the Egyptian Expeditionary Force’s advances.
- Indian soldiers played a major part in the Battle of Haifa, which was fought between the allied forces and the Ottoman Empire.
- Strategic attacks by the Jodhpur and Mysore Lancers resulted in the capture of 1,350 German and Ottoman prisoners as well as several artillery and machine guns.
- The regiments suffered casualties, including eight fatalities and 34 injuries, as well as the death or injury of numerous horses.
Importance of the war
- The valor of Indian warriors, notably Sikhs and Rajputs, in international battles is attested to by the Battle of Haifa.
- The First World War contributions made by India are highlighted.
- Capture of Acre solidified the success of the allied forces in the region.
Sovereign Green Bonds
Source: Business Standard
GS III: Economy; Environment
Overview
- News in Brief
- What are Sovereign Green Bonds?
Why in the News?
Commercial banks may find it difficult to show interest in the recently introduced sovereign green bonds in the central government’s borrowing plan for the second half of the current fiscal year.
News in Brief
- Conversely, insurance firms are more inclined to drive demand because of legislative requirements.
- In a notification, the Insurance Regulatory and Development Authority (Irdai) classified purchases of sovereign green bonds as investments in infrastructure.
- According to Irdai, insurance firms are required to invest a minimum of 15% of their life fund AUM in the infrastructure and housing category.
- Insurance companies will buy this as Geen Bonds are qualified for the condition by Irdai.
What is the government plan?
- The central government plans to issue green bonds to raise 20,000 crore as part of its borrowing scheme.
- This offering will consist of 10,000 crores in 30-year green bonds and an additional 5,000 crores in 5- and 10-year bonds, respectively.
- The proceeds from the issuance of green bonds will be used to fund government initiatives aimed at reducing the economy’s carbon impact.
What are Sovereign Green Bonds?
- Companies, nations, and international organizations all offer green bonds.
- It was launched in 2007.
- The bonds guarantee fixed-income payments to investors while only funding initiatives that help the environment or the climate.
- The initiatives might involve, among other things, green buildings, sustainable transportation, and renewable energy.
- These bonds’ earnings are designated for environmental initiatives.
- This is different from regular bonds, which allow the issuer to use the profits for a variety of things.
- There have been cumulative issuances on the global green bond market totalling more than USD 1 trillion.
- According to the London-based Climate Bonds Initiative, by the end of 2020, 24 national governments would have issued sovereign green, social, and sustainability bonds worth a total of USD 111 billion.
Benefits of Sovereign Green Bonds
- In order to reduce the economy’s carbon intensity, environmentally friendly public sector initiatives will be funded with the profits from this instrument.
- Alignment with Climate Goals
- Green Bonds align with a country’s climate goals and commitments, such as those outlined in the Paris Agreement.
- Issuing these bonds demonstrates a government’s commitment to reducing greenhouse gas emissions, mitigating climate change, and transitioning to a low-carbon economy.
- Promotion of Green Innovation
- Sovereign Green Bonds stimulate innovation in green technologies and industries.
- Governments can use the proceeds to support research and development in areas like renewable energy, sustainable agriculture, and clean transportation, fostering economic growth and job creation.
- Encouraging Private Sector Participation
- Sovereign Green Bonds can catalyze private sector investment in green projects.
- As governments demonstrate their commitment to sustainability through bond issuance, private companies may follow suit by investing in similar initiatives.
- Long-Term Economic Benefits
- Investing in green projects can lead to long-term economic benefits, including reduced environmental costs, improved public health, and increased energy efficiency.
- These benefits can have a positive impact on a nation’s economy and well-being.
Open Network for Digital Commerce (ONDC)
Source: Business Standard
GS II: Indian Economy
Overview
- News in Brief
- About ONDC
Why in the News?
Open Network for Digital Commerce (ONDC) is set to expand its services to include financial offerings, such as credit, insurance, investments, and gift cards.
- This move comes after the platform successfully ventured into sectors like food, grocery, fashion, travel, and electronics.
News in Brief
- Over 65 entities have shown interest in joining the network as either buyer and seller applications (lending institutions) or technology service providers.
- More than 20 entities have already begun their integration journey.
- Companies that have initiated integration directly or through technology service providers include Tata Digital, India Lends, Easy Pay, DMI Finance, Aditya Birla Finance, and Karnataka Bank.
Services Provided by Open Network for Digital Commerce
- 4 components of financial services:
- Credit
- Insurance
- Investments
- Gift cards
- In insurance, ONDC is starting off with three products
- Health insurance
- Marine insurance
- Motor insurance
- For mutual fund investments, ONDC is working with MF Utilities India to onboard asset management firms as seller applications
Open Network for Digital Commerce (ONDC)
- An effort called Open Network for Digital Commerce (ONDC) aims to advance open networks for all facets of the exchange of goods and services through digital or electronic networks.
- Open standards and open network protocols will be used by ONDC, which will be independent of any particular platform.
- As with the simple mail transfer protocol for email exchange, the hypertext transfer protocol for information exchange over the internet, and the unified payments interface for payments, the foundations of ONDC are to be open protocols for all aspects of the entire chain of activities in exchange of goods and services.
- These open protocols would be used for establishing public digital infrastructure in the form of open registries and open network gateways to enable the exchange of information between providers and consumers.
- Providers and customers might communicate information and conduct transactions through ONDC using any suitable application of their choosing.
- The present platform-centric approach of digital commerce, in which both the buyer and the seller must utilize the same platform or application in order to be visible online and conduct business, is outmoded by ONDC.
- Operations including cataloguing, inventory management, order management, and order fulfilment would be standardized via ONDC standards.
- Thus, rather than being constrained by certain platform-centric restrictions, small firms would be free to employ any ONDC-compatible apps.
- Small companies will have a variety of alternatives for how to conduct business and be found on the network thanks to this. Additionally, it would encourage people who are now not using digital methods to quickly embrace them.
- Consumers may expect ONDC to increase the accessibility and inclusivity of e-commerce. By using any suitable application or platform, customers may be able to find any vendor, item, or service, possibly expanding their range of options.
- The customers will be able to match demand with the closest supply.
- Additionally, this would allow customers to select the neighbourhood businesses they like.
- As a result, the ONDC would standardize processes, encourage the use of local suppliers, increase logistical efficiency, and improve value for customers.
GST For Digital Foreign Firms
Source: Business Standard
GS III: Economy
Overview
- News in Brief
- About Online Information and Database and Retrieval Services (OIDAR)
Why in the News?
From October 1, foreign companies such as Netflix, Spotify, and Hotstar, providing a wide range of digital services to users in India, will face stricter compliance norms on goods and services tax (GST).
News in Brief
- They will have to pay 18 per cent GST regardless of the purpose.
- Current Tax
- Foreign firms providing service to non-GST registered recipients such as the central and state governments and individuals for any purpose other than business were exempt from the tax.
- It is not mandatory to levy the tax on unregistered recipients, which include a large consumer base.
- The Central Board of Indirect Taxes and Customs (CBIC) notified the exemptions will no longer be applicable to OIDAR or Online Information and Database and Retrieval Services.
- How will this help?
- The move will help investigators to enforce the tax on foreign firms by nudging them to be GST-compliant through registering themselves, remitting taxes, and filing returns under GST provisions.
- This will remove ambiguity, improve overall compliance in the digital space, and plug loopholes.
- Why the move?
- OIDAR service providers such as OTT (over-the-top) platforms and social media platforms earn substantial revenue from their Indian customer base.
- For instance, Netflix, Inc., headquartered in the US, has a significant user presence in India.
- It is subject to IGST on sales to unregistered individuals, necessitating comprehensive record-keeping practices.
- Who will fall in the tax?
- Online education services, gaming, and advertising, which were earlier argued to be outside the scope of OIDAR services, will now fall within the amended definition.
- Livestreaming of events and classes might still continue to be exempt but providing access to the library or recorded videos would be subject to GST.
About Online Information and Database and Retrieval Services (OIDAR)
- Online Information Database Access and Retrieval Services, or OIDAR for short, are a class of online services that recipients can access and use without physically interacting with the service provider.
- For instance, downloading an e-book from the internet and paying for it would count as receiving OIDAR services from the client.
- Which are these services?
- Advertising on the internet
- Providing cloud services
- Provision of e-books, movies, music, software and other intangibles through telecommunication networks or the internet
- Providing data or information, retrievable or otherwise, to any person in electronic form through a computer network
- Online supplies of digital content (movies, television shows, music and the like)
- Digital data storage
- Online gaming
How is OIDAR different from other services?
- OIDAR services are designed to be delivered remotely from outside the taxable area over the Internet. Similar services rendered to recipients in India by an Indian Service
- Provider from inside the taxable region would be subject to taxation.
- Furthermore, these services would be subject to reverse charge taxation if obtained by an Indian corporation that is registered.
- If these services were not included in the tax net, the foreign providers would receive an unfair tax benefit.
- The Compliance Online Information Data Base Access and Retrieval Services in GST verification method also becomes challenging because the service provider is foreign and could not have a presence in India.
Daily Current Affairs: Click Here