Daily Current Affairs
Prelims Exam
1.Vibrant Village Programme
Why in News ?
MHA to spend ₹2 crore/km on border roads (Uttarakhand, Sikkim) under the program.
About:
- Centrally Sponsored Scheme for border village development.
- Aims to improve quality of life and stop migration.
- Focuses on livelihood generation through:
- Tourism & cultural heritage promotion
- Skill development & entrepreneurship
- Agriculture, horticulture & cooperatives
Coverage:
- Select villages in 46 blocks across 19 districts.
- States: Arunachal Pradesh, Himachal Pradesh, Sikkim, Uttarakhand, Ladakh (UT).
Financial Outlay: ₹4800 crore (2022-23 to 2025-26).
Impact:
- Transformative impact on villages.
- Integration with PM Gati Shakti for infrastructure projects.
2.DigiLocker
Why in News ?
Over 270 million users and 6.7 billion documents retrieved .
About:
- Launched in 2015 by MeitY under Digital India.
- A secure digital platform for storing government-issued documents.
- Provides access to:
- Educational certificates
- Identity documents
- Health records
- PAN cards
- Driving licenses
- And more
Benefits:
- Eliminates fake/outdated documents.
- Digital documents considered valid like originals.
- Faster service delivery through the app.
Security:
- Government-approved application with strict security protocols.
- Aligns with Digital India’s vision for secure document access.
3.ASEAN-India Trade in Goods Agreement (AITIGA)
Why in News ?
- 4th Joint Committee meeting for review held in Malaysia.
About AITIGA:
- Signed in 2010, operational since 2010.
- Aims to reduce/eliminate duties on 76.4% of goods traded between India and ASEAN nations.
- Review initiated in September 2022 for improved trade facilitation and mutual benefit.
- Eight sub-committees formed for negotiations on specific policy areas.
Importance:
- ASEAN is a major trade partner for India (11% share).
- Bilateral trade at USD 122.67 billion (2023-24).
- Upgrading AITIGA can boost trade further.
4.Aurora Lights in India
Why in News ?
Indian Astronomical Observatory captured Aurora Borealis in Ladakh.
About Aurora:
- Light displays near Earth’s poles (North: Aurora Borealis, South: Aurora Australis).
- Visible in colors like blue, red, yellow, green due to gas types and altitude.
- Caused by collisions of charged particles (from solar storms) with Earth’s atmosphere.
Recent Sichtings:
- Aurora Borealis seen in Ladakh, US, UK.
- Aurora Australis seen in New Zealand, Australia.
Additional Facts:
- Auroras also observed on Jupiter, Saturn, Uranus.
- Typically visible in high-latitude Arctic/Antarctic regions.
5.Indian Rupee Depreciation
Why in the News?
- Indian Rupee depreciated by 27.6% against the US dollar over the past decade.
Exchange Rate Basics:
- Rate at which one currency is exchanged for another (e.g., USD/INR).
- Types: Fixed, Floating, Managed Float.
- Influenced by factors like interest rates, inflation, and trade.
Effective Exchange Rate (EER):
- Weighted average of a currency against a basket of currencies, considering trade and inflation.
- Types:
- Nominal Effective Exchange Rate (NEER): Simple average of bilateral exchange rates, weighted by trade share. (Constructed by RBI for different baskets)
- Real Effective Exchange Rate (REER): NEER adjusted for inflation differences between trading partners. (More accurate measure of trade competitiveness)
Impacts of Rupee Depreciation:
Positive:
- Boosts Exports: Cheaper exports become more attractive globally.
- Inward Remittances: Weaker rupee increases value of money sent home by overseas workers.
Negative:
- Higher Import Costs: Imported goods become more expensive, potentially leading to inflation.
- Costlier Foreign Debt: Repaying foreign debt becomes more expensive for the government.
- Discourages Foreign Investment: Depreciation may signal instability, deterring foreign investors.
Source : https://indianexpress.com/article/explained/explained-economics/rupee-modi-government-9285946/
6.FEMA Regulations Relaxed for Foreign Investment in Derivatives
Why in the News?
- RBI simplified foreign investment in derivatives by relaxing FEMA regulations.
Relaxation Details:
- Objective: Easier margin management for domestic and international derivative trading.
- Benefits for Foreign Investors:
- Convenient investment in Indian derivative instruments.
- Open interest-bearing accounts with Authorized Dealers (ADs) in India for margin.
- Earn interest on these margin funds.
- Dedicated accounts simplify management of margin obligations.
Current Mechanism:
- RBI permits specific derivative contracts (interest rate, equity).
- Interest-bearing accounts (INR/foreign currency) allowed for domestic margin collection.
Changes Introduced:
- ADs can now allow non-residents to open and maintain these interest-bearing margin accounts.
- Permitted derivative contracts remain unchanged.
Understanding FEMA (1999):
- Legal framework for managing foreign exchange transactions in India.
- Classifies transactions as current or capital account.
Current Account Transactions (No impact on resident’s foreign assets/liabilities):
- Foreign trade payments.
- Foreign travel expenses.
- Educational expenses.
Capital Account Transactions (Affect resident’s foreign assets/liabilities):
- Investments in foreign securities.
- Acquiring property outside India.
Resident Indian Definition (FEMA Section 2(v)):
- Someone residing in India for more than 182 days in the previous financial year.
- Any person or corporation registered/incorporated in India.
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