Daily Current Affairs 17 November 2023 – IAS Current Affairs

Current Affairs 17 November 2023 focuses on the Prelims-Mains perspective. Major events are :

India-EU $600mn WTO Dispute

Source: Indian Express
GS III: Economy

Overview

1. News in Brief
2. Impact on India

Why in the News?

Information communications technology (ICT) products and the European Union (EU) are the subject of a trade dispute that India is allegedly close to resolving.

News in Brief

• In this dispute, which dates back to 2019, Brussels contested India’s application of import tariffs on a range of ICT equipment, arguing that this went against international trade norms and adversely affected the EU’s €600 million worth of tech exports to India.
• This comes on the heels of India settling all seven trade disputes at the World Trade Organization (WTO) with its largest trade partner, the US.
• The dispute assumes significance as it was feared to affect India’s efforts to boost electronic products manufacturing.

Impact on India

• The decision is critical to India’s aspirations to increase the production of electronic products, a strategically important industry meant to lessen reliance on China.
• The success of India’s flagship production-led incentive (PLI) plan depends on the outcome; otherwise, it may have been impacted if the EU’s challenge had led to the removal of levies on ICT products.

India’s Perspective on Losses

• India informed the EU that the EU’s steel import restrictions were causing it to suffer similar losses.
• Aiming to stop a spike in US steel exports to the EU after contentious steel tariffs under the Trump administration, the EU placed particular restrictions and an additional 25 per cent import charges on the commodity.

Implications of Dispute Resolution

• The upcoming decision addresses several unresolved problems and comes after a high-level Trade and Tech Council (TTC) meeting between India and the EU.
• The World Trade Organization (WTO) lacks a viable dispute resolution system, which makes the TTC more significant because the EU only has a council with the US.
• Amid growing tensions with China, the TTC concentrates on developing technological collaborations.

India’s Trade Strategy and WTO Challenge

• India’s aim to improve the manufacturing of electronic devices included increasing levies on ICT items.
• This was mainly due to the production-linked incentive (PLI) scheme. India’s exports of goods have decreased overall, while its exports of electronic items have increased.
• Earlier in the year, India questioned the constitutionality of the WTO dispute resolution body’s judgment that favoured the EU, demonstrating its commitment to protecting its trade policy.

RBI Raises Risk Weights

Source: PIB
GS III: Economics

Overview

1. News in Brief
2. What are the new tightened norms under RBI Raises Risk Weights?
3. What are Risk Weights for Banks?

Why in the News?

After cautioning banks and non-banking financial companies (NBFCs) on surging unsecured loans like personal loans and those on credit cards, the Reserve Bank of India (RBI) increased the risk weighting for such loans from 100 per cent to 125 per cent.

News in Brief

• The risk weighting for bank loans to higher-rated NBFCs has also increased by 25 percentage points.
• The new norms, which take immediate effect, apply to new and outstanding loans.
• As the increase in risk weighting will mean banks have to set aside more capital while extending such loans, the lenders could increase the lending rates on such products.
• Bank credit growth has been around 20 per cent
  • Growth in loans on credit cards around 30 per cent
  • Personal loans around 25 per cent

What are the new tightened norms under RBI Raises Risk Weights?

• Banks’ risk weight on personal loans for outstanding and new loans increased by 25 percentage points to 125%.
• The risk weight of NBFC’s consumer credit exposure for outstanding as well as new increased to 125% from 100%.
• The risk weight of banks’ credit card receivables increased to 150% from 125%; for NBFC 125% from 100%.
• Risk weights on bank loans to AAA, AA, and A-rated NBFCs increased by 25 percentage points.
• Bank board to decide exposure limits for consumer credit, in particular unsecured loans.
• All top-up loans for movable assets are to be treated as unsecured.
• This excludes housing loans, education loans, vehicle loans and loans secured by gold and gold jewellery,

What are Risk Weights for Banks?

• The minimum amount of capital that banks must have, with the risk profile of the bank’s lending activities (and other assets).
• This means if the bank takes high risk bank needs higher capital to protect the depositors.
• When handling our money, the three largest risks banks take are credit risk, market risk, liquidity risk and operational risk.

What is the reason for raising Risk Weights for Banks?

• There was relatively high growth in consumer credit and unsecured loans in the recent past.
• Increasing the risk weighting is one way to enhance the sensitivity of banks and NBFCs to strengthen the situation.

Fake Doctors Conducting Illegal Abortions

Source: The Hindu
GS II: Health

Overview

1. News in Brief
2. What is the situation of Illegal abortion?

Why in the News?

Police investigation into the fake doctor’s racket at Agarwal Medical Centre, Greater Kailash-I, reveals multiple cases of illegal sex determination linked to abortions.

News in Brief

• Further investigations reveal a connection between the clinic and illegal sex determination procedures leading to multiple cases of abortions.
• The doctors would charge somewhere between ₹8,000 and ₹10,000 instead of the usual cost of ₹70,000-₹80,000 for a gallbladder operation.
• This would lure patients from lower-income families who could neither afford private medical care nor spare time to be treated at government facilities with long waiting lines.

What is the situation of Illegal abortion?

• Unsafe abortions are a major public health concern in India, accounting for a significant proportion of maternal mortality and morbidity.
• The prevalence of illegal abortions stems from various factors, including lack of access to safe and legal abortion services, societal stigma associated with abortion, and restrictive abortion laws.

Factors Contributing to Illegal Abortions

• Limited access to safe and legal abortion services
  • Many women in India, particularly those in rural areas, lack access to safe and legal abortion services due to geographical barriers, inadequate healthcare infrastructure, and a shortage of trained healthcare providers.
• Societal stigma associated with abortion
  • Abortion remains a taboo subject in Indian society, leading to women seeking clandestine abortions from unqualified providers, often in unsafe conditions.
• Restrictive abortion laws
  • The Indian Penal Code (IPC) allows abortion only under certain circumstances, such as when the pregnancy poses a risk to the mother’s life or when the pregnancy is the result of rape or incest.

Consequences of Illegal Abortions

• Maternal mortality and morbidity
  • Unsafe abortions are a major cause of maternal mortality and morbidity in India. 
  • Women who undergo unsafe abortions are at increased risk of complications such as bleeding, infection, and organ damage.
• Psychological trauma
  • The emotional and psychological trauma associated with unsafe abortions can be profound, leading to anxiety, depression, and post-traumatic stress disorder (PTSD).

Measures to Address Illegal Abortions

• Expanding access to safe and legal abortion services
  • This includes increasing the availability of trained healthcare providers, establishing well-equipped abortion clinics, and providing transportation and accommodation support for women seeking abortion services.
• Raising awareness and reducing stigma
  • Comprehensive sex education should be integrated into school curricula to provide accurate information about reproductive health and abortion. 
• Revising abortion laws
  • The IPC’s stringent abortion laws should be reviewed and updated to reflect modern medical practices and women’s reproductive rights.

Crime Of Adultery

Source: Indian Express
GS II: Governance

Overview

1. News in Brief
2. Gender-Neutral Adultery Laws

Why in the News?

The Bharatiya Nyaya Sanhita (BNS), 2023, which is meant to replace the Indian Penal Code (IPC), 1860, has the recommendation of the Parliamentary Committee on Home Affairs to bring back adultery as a crime.

News in Brief

• Adultery was classified as a criminal offence under IPC Section 497 before 2018, which exclusively punished men with jail time or a fine.
• But in the 2018 case of Joseph Shine v. Union of India, the Supreme Court unanimously declared that Section 497 was unconstitutional due to discriminatory practices and a breach of fundamental constitutional rights.

Gender-Neutral Adultery Laws

Committee’s Recommendation for Gender-Neutral Adultery Laws

• The 350-page BNS, 2023 report from the House panel was approved on November 10.
• It suggests that adultery be made a crime again, but that the punishment for it should be equal for men and women.
• The Committee argues that Indian society must protect the institution of marriage’s sacredness.

Challenges and Constitutional Concerns

• In 2018, the Supreme Court ruled that Section 497 was unconstitutional due to discriminatory practices, blatant arbitrariness, and infringement on fundamental rights to equality, nondiscrimination, and life.
• The court rejected the notion that husbands had legal dominance over their wives and instead placed an emphasis on the liberty and dignity of women.
• If adultery were considered a criminal offence, the ruling cautioned against the extreme invasion of privacy inside the matrimonial domain, proposing that it should be grounds for divorce.

Supreme Court’s Ruling and Legislative Limitations

• The Supreme Court’s ruling to invalidate Section 497 is still enforceable, and Parliament is unable to directly override it.
• The Committee’s recommendation, however, suggests that the foundation for the court’s ruling might be removed by passing new legislation.
• The Supreme Court made it clear in the Madras Bar Association v. Union of India (2021) case that validating legislation might be passed to correct flaws identified in a verdict, making it both prospective and retroactive if the changed status existed before the court’s decision.

Documenta Art Exhibition

Source: Indian Express
GS I: Art and Culture

Overview

1. News in Brief
2. Documenta Exhibition and Significance

Why in the News?

Cultural theorist and curator Ranjit Hoskote announced his resignation from the Documenta Finding Committee.

News in Brief

• This came after Israeli artist Bracha Lichtenberg Ettinger resigned and asked for a postponement of the proceedings because of the conflict in Gaza.
• Following charges of “anti-Semitism” and showing support for the Boycott, Divestment, and Sanctions (BDS) movement, which opposes Israel’s occupation of Palestinian territories, Hoskote resigned.
• In 2019, Hoskote joined a BDS India petition in opposition to a talk about Zionism and Hindutva.

Documenta Exhibition and Significance

• Renowned for its inclusive and non-commercial approach, Documenta is a major art exhibition that takes place in Kassel, Germany, every five years.
• Spending more than $40 million, it draws attention from around the world and includes artists who aren’t quite well-known in Europe but are nonetheless honoured for their significant contributions.
• The goal of the exhibition is to present outstanding contemporary art rather than being as market-driven as biennales.

Participants and Selection Process

• A team of international specialists selects artists to apply to be the Artistic Director of the upcoming Documenta edition.
• The committee selects the suggested concepts whose format it deems most promising.
• Following the recent resignations, Gong Yan, Simon Njami, Kathrin Rhomberg, and María Inés Rodríguez are among the members of the Finding Committee for Documenta 16 in 2027.

History of Documenta and Sensitivity to Anti-Semitism

• Documenta was established in 1955 to reestablish Germany’s international relations following World War II.
• Because of its early ties to the Nazis, it has drawn criticism.
• ‘Documenta: Politics and Art’, an exhibition from 2021, disclosed that certain organizers of the inaugural Documenta had ties to the Nazi Party, SA, or SS.
• Anti-Semitic sensitivity has been a persistent issue, as seen by claims that several recent editions contained anti-Semitic imagery, which sparked debates and resignations.

Controversies and Accusations

• Different editions of Documenta have been accused of anti-Semitic sentiment.
• Some artworks from Documenta 15 (2022) were removed when accusations that they had anti-Semitic iconography surfaced.
• The display drew criticism for inciting anti-Israel sentiment, and an expert panel said that Documenta 15 had turned into an “echo chamber” for both overt and covert anti-Semitic remarks about Israel.

Daily Current Affairs: Click Here

Rate this Article and Leave a Feedback