Current Affairs 11 September 2020 – IAS Current Affairs

Current Affairs 11 September 2020 focuses on Prelims-Mains perspective. Major events are :

1. Indo-Pacific Cooperation Maritime Security
2. FDI Hike In Defence
3. India and Japan logistics agreement
4. SAROD-Ports Launched
5. Five Star Villages Scheme

Indo-Pacific Cooperation Maritime Security

Why in News ?

Indo-Pacific was the top focus at the first India-France-Australia trilateral dialogue. Indo-Pacific Cooperation Maritime Security a signal to China.

About the Trilateral Dialogue Key Areas

• Enhancing cooperation in the Indo-Pacific Region with France and Australia are India’s key partners in the Indo-Pacific region.
• Shangri-La Dialogue in Singapore in 2018 as a means of promoting the concept of Security and Growth for All in the Region – or SAGAR.
• Upcoming challenges in the context of Covid-19, including the financial impact of the pandemic on the Indian Ocean region countries.
• Enhancing maritime security cooperation between the three countries on key areas includes
  • Humanitarian assistance and disaster relief
  • Maritime domain awareness
  • Mutual logistics support
  • Capacity-building of friendly countries in the Indo-Pacific region.
• Challenges to Environment and Resources
  • Blue economy
  • Marine biodiversity and environmental challenges such as marine pollution
  • Collaborating on sustainable fisheries
  • Technologies for harvesting of Deep Ocean Resources
  • Ocean Thermal Energy Conversion
• Initiatives such as the International Solar Alliance and Coalition for Disaster Resilient Infrastructure and the need for a reformed multilateralism.

Indo-Pacific Region

Where it lies :

• It is stretching from the west coast of the United States to the west coast of India
• The Indo-Pacific majorly consists of  the tropical waters of the Indian Ocean, the western and central Pacific Ocean, and the seas connecting the two in the general area of Indonesia.
• The region covers nearly 20% of the water on the earth’s surface.

Economic Corridor Possibilities

• Global economic growth have shifted to Asia now the Indo-Pacific that includes South Asia.
• As governments shift from an Asia-Pacific to Indo-Pacific conceptualisation of Asia, the functional purpose of regionalism is therefore also shifting from economic to security objectives.
• How can Economic Activities Achieve
  • Building Indo-Pacific dialogue bodies for economic cooperation
  • Negotiating new trade agreements that span across the Pacific and Indian oceans
  • Supporting infrastructure and connectivity initiatives that can provide a foundation for deepening economic integration.
• Much of the world’s seaborne trade and two-thirds of global oil shipments currently traverse the broader Indo-Pacific arc.

Concern over the region

• Emerging security concerns are the primary factor behind the emergence of the Indo-Pacific concept.
• Growing threat from China and their agressive policies in the South China Sea are major concern.
• Manage territorial disputes in the South China Sea and beyond are seen as a concern.

Major powers in the region : Australia, India, Japan and the US have formally adopted the term Indo-Pacific into their foreign policy and/or defence strategies. The Indo-Pacific provides an ideal framework within which India can take a role as a regional security actor befitting its size and regional importance. Source : Indian Express  Topic Prelims :  About the Organisation and Region GS II : Effect of policies and politics of developed and developing countries on India’s interests, Indian diaspora

FDI Hike In Defence

Why in News ?

Foreign direct investment through automatic approval in the defence sector from 49 per cent to 74 per cent and it includes National Security Clause. 

FDI Hike In Defence and New Policy

• Foreign investment in the Defence Sector shall be subject to scrutiny on ground of National Security
  • Government reserves the right to review any foreign investment in the Defence Sector that may affect national security
  • It has been explicitly mentioned as defence is a sensitive sector.
• Foreign Direct Investment through automatic approval in the defence sector from 49 per cent to 74 per cent
  • Under the existing policy the defence industry can bring FDI up to 49 per cent under the automatic route
  • Above it under government route reasons to be recorded.
  • The increase will attract more FDI and India can play a pivotal role in defence sector. 

What are the Benefits ?

• The government wants foreign original equipment manufacturers to shift operations to India, and also encourage private players to play a larger role.
• Expanding India’s presence in international supply chains.
• Defence sector to act as an engine for boosting manufacturing in the country.
• Also aiming to achieve a turnover of Rs 1.75 lakh crore, including exports worth Rs 35,000 crore, by 2025.

Overall FDI

• FDI into India rose 10 per cent to $42.69 billion in the year ended March 31, 2020
• $38.74 billion in the previous year despite the global slowdown
• Cayman Islands showing the biggest jump in bringing cash in to India a 302% hike.
•  Singapore, Mauritius, Netherlands, US and Japan  are the major contributors to Indian FDI.
  • Singapore and Mauritius remained the major source countries, accounting for about 50 per cent of total FDI flows.
  • FDI from the US was $ 3.40 billion.
• Implication of Hike
  • Slowdown in the global economy and growing global investment concerns due to disruptions in supply chains, India was able to sustain the pace of FDI in 2019-20
  • Also India was the 9th largest recipient country globally in 2019.
• Which Sector getting Highest FDI ?
  • FDI equity flows went to the services sector, including communication services, retail and wholesale trade, financial services, computer and business services and the manufacturing sector.
  • The manufacturing sector got $ 8.15 billion, communication services $ 6.83 billion and retail trade $ 4.91 billion.

Source : Indian Express

Topic

GS III : Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth

India and Japan logistics agreement

What is the News ?

India and Japan logistics agreement signed that will allow the Armed Forces of both sides to coordinate closely in services and supplies.

India and Japan logistics agreement

• The agreement is also called Acquisition and Cross-Servicing Agreement
  • To exchange most common types of support, including food, fuel, transportation, ammunition, and equipment.
• It would allow the militaries of the two countries to exchange supplies and services on a reciprocal basis during exercises
• Allow the Armed Forces of both sides to coordinate closely in services and supplies.
• Reciprocal Provision Supplies and Services’ will “increase interoperability between the Armed Forces of India and Japan
• It is critical while engaged in bilateral training activities, United Nations Peacekeeping Operations, Humanitarian International Relief and other mutually agreed activities.
• Help both sides coordinate on medical requirements, supplies, maintenance, airlifting and communication.
• It will boost India-Japan exercises as the participants are expected to share maritime facilities for mutual benefit. 

How helpful Acquisition and Cross-Servicing Agreement ?

• Japan becomes the sixth country with which India has such an arrangement, adding to the United States, France, Singapore, South Korea, and Australia.
• Logistics Exchange Memorandum of Agreement (LEMOA) with the United States and ACSA agreements that New Delhi maintains with five other countries.
• Japanese Maritime Self-Defense Force warships (MSDF) have become a regular presence in the Indian Ocean
  • Arrangements like ACSA facilitate longer deployments for the MSDF and encourage additional interactions with the Indian Navy.
  • The agreement will “enable [India and Japan] to actively contribute to international peace and security.
  • The growing Chinese aggression is seen as a threat and such agreement is required for tackle the threat.

Japan and Surrounding Region

Source : The Hindu 

Topic

GS II : Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests

SAROD-Ports Launched

Why in News ?

Union Minister of State for Shipping (I/C) launched SAROD-Ports through virtual ceremony.

SAROD-Ports

• It is launched by by the Union Shipping Ministry.
• Society for Affordable Redressal of Disputes – Ports will resolve the disputes in fair and just manner while saving huge amount of legal expenditure and time.
• SAROD-Ports is established under Societies Registration Act, 1860 aims at
  • Affordable and timely resolution of disputes in fair manner.
  • Enrichment of Dispute Resolution Mechanism with the panel of technical experts as arbitrators.
• It has members of Indian Ports Association and Indian Private Ports and Terminals Association
• Advise and assist in settlement of disputes through arbitrations in the maritime sector, including ports and shipping sector.
• Besides it will cover
  • Disputes between granting authority and Licensee/Concessionaire /Contractor.
  • Disputes between Licensee/Concessionaire and their contractors.
• How it Benefits ?
  • It will promote ease of doing business in the maritime sector because of the fast, timely, cost effective and robust dispute resolution mechanism.
• This will boost the implementation of Landlord Model port.

Landlord Model port : infrastructure is leased to private operating companies or to industries such as refineries, tank terminals, and chemical plants. Government act as a governing Body for the port administration. 

Source : The Hindu

Topic 

Prelims : About the SADAR-Port, Lanlord Model 

GS II : Important aspects of governance, transparency and accountability, e-governance- applications, models, successes, limitations, and potential; citizens charters, transparency & accountability and institutional and other measures

Five Star Villages Scheme

Why in News ?

Department of Posts has launched a scheme called Five Star Villages, to ensure universal coverage of flagship postal schemes in rural areas of the country.

About Five Star Villages Scheme

• Scheme seeks to bridge the gaps in public awareness and reach of postal products and services focused on the interior of the villages.
• Under the Five Star Villages scheme all product and services are made available at the village level.
• The schemes covered under the Five Star scheme include:
  • Savings Bank accounts, Recurrent Deposit Accounts, NSC / KVP certificates
  • Sukanya Samridhi Accounts/ PPF Accounts
  • Funded Post Office Savings Account linked India Post Payments Bank Accounts
  • Postal Life Insurance Policy/Rural Postal Life Insurance Policy
  • Pradhan Mantri Suraksha Bima Yojana Account / Pradhan Mantri Jeevan Jyoti Bima Yojana Account.
• Process of providing star
  • Once it achieve all the five aims it will get Five star status
• The scheme will be implemented by a team of five Gramin Dak Sevaks who will be assigned a village for marketing of all products, savings and insurance schemes of the Department of Posts.
  • Team will be headed by the Branch Post Master of the concerned Branch Office.
• Team of Gramin Dak Sevaks will conduct door-to-door awareness campaign on all schemes, covering all eligible villagers.
• Training and infrastructure, covering all schemes, would be provided to all branch offices in identified villages.
  • Monthly progress will be reviewed by the Chief Post Master General.

Post Office in India

• With 1, 55,531 Post Offices, the DoP has the most widely distributed postal network in the world.
• DoP also acts as an agent for Government of India in discharging other services for citizens such as
  • Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) wage disbursement
  • Old age pension payments.
• Postal service in India works as a bank, pension fund, primary savings instrument and delivery service.
• Since the beginning of lockdown on March 23 its network of 1,54,000 post offices to help poor Indians access cash benefits to lifesaving medicines, when all transport and services came to a standstill.
• Launched Project Arrow in 2008, to modernise Indian Post and run it as a pan-India network.
  • This was not effective. 

Source : PIB

Topic

Prelims : About Five Star Villages Scheme

GS II : Government policies and interventions for development in various sectors and issues arising out of their design and implementation

Current Affairs 11 September 2020 : Our major Sources for the Current Affairs are The Hindu, Indian Express, PIB. For more queries and mentor-ship please contact us.