CURRENT AFFAIRS 31 OCTOBER 2019

CURRENT AFFAIRS 

31 OCTOBER 2019

1.Union Territories of Jammu and Kashmir and Ladakh(gs-2)Context: Jammu and Kashmir ceases to be a State

• Union Territories of Jammu and Kashmir and Ladakh come into existence; Girish Chandra Murmu and Radha Krishna Mathur will be sworn in as Lieutenant Governors of J&K and Ladakh respectively.
• The bifurcation of Jammu & Kashmir into two Union Territories came into effect at midnight on October 30. Girish Chandra Murmu and Radha Krishna Mathur will be sworn in as Lieutenant Governors of J&K and Ladakh respectively at two separate ceremonies on October 31.
• J&K Chief Justice Gita Mittal will administer the oath to Mr. Mathur at 7.15 a.m. in Leh district of Ladakh. Around 12.45 p.m., she will swear in Mr. Murmu in J&K’s summer capital Srinagar. A special plane has been kept ready in Leh to meet the deadlines of the two ceremonies. Multiple security layers have been finalised for both the UTs to ensure peaceful and smooth ceremonies.
• Ms. Mittal arrived in Leh on October 30, while the Lieutenant Governor-designates also reached their respective stations. 

Jammu and Kashmir Reorganisation Act, 2019:

• The Jammu and Kashmir Reorganisation Act, 2019 is an act of the Parliament of India. It contains provisions to reconstitute the state of Jammu and Kashmir into two union territories, one to be eponymously called Jammu and Kashmir, and the other Ladakh, on 31 October 2019. A bill for the act was introduced by the Minister of Home Affairs, Amit Shah, in the Rajya Sabha, on 5 August 2019 under the leadership of Prime Minister Narendra Modi. The bill was passed in Rajya Sabha the same day and was passed by the Lok Sabha on 6 August 2019. It received the President's assent on 9 August 2019.
• The introduction of the bill was preceded by a presidential order under Article 370 of the Indian constitution that revoked Jammu and Kashmir's special status, and mandating, inter alia, that all the provisions of the Indian Constitution would be applicable to Jammu and Kashmir. This enabled the parliament to enact the legislation.

2.Air-independent propulsion(gs-3)Context:Submarine propulsion system test a success

• The indigenous Air Independent Propulsion (AIP) system to enhance the endurance of conventional submarines being developed by the Defence Research and Development Organisation (DRDO) reached a milestone on Wednesday with the successful operation of a landbased prototype. All Scorpene submarines of the Navy are planned to be equipped with an AIP module in due course. “Operation of the landbased prototype engineered to the form­and­fit of a submarine was witnessed by Chief of the Naval Staff?? Admiral Karambir Singh in the presence of Secretary, Department of Defence R&D and Chairman DRDO Dr. G. Satheesh Reddy at the Naval Materials Research Laboratory, Ambernath,” the DRDO said in a statement. 
• An AIP module enables conventional submarines to remain submerged for longer duration. “Fuel cell­based AIP has merits in performance compared to other technologies,” the statement said and added that the DRDO programme to build a fuel cell­based AIP system for Indian Naval Submarines had “crossed several milestones

Air-independent propulsion:

• Air-independent propulsion (AIP) is any marine propulsion technology that allows a non-nuclear submarine to operate without access to atmospheric oxygen (by surfacing or using a snorkel). AIP can augment or replace the diesel-electric propulsion system of non-nuclear vessels.
• The United States Navy uses the hull classification symbol "SSP" to designate boats powered by AIP, while retaining "SSK" for classic diesel-electric attack submarines.[a]
• Modern non-nuclear submarines are potentially stealthier than nuclear submarines; a nuclear ship's reactor must constantly pump coolant, generating some amount of detectable noise (see acoustic signature). Non-nuclear submarines running on battery power or AIP, on the other hand, can be virtually silent. While nuclear-powered designs still dominate in submergence times and deep-ocean performance, small, high-tech non-nuclear attack submarines are highly effective in coastal operations and pose a significant threat to less-stealthy and less-maneuverable nuclear submarines.
• AIP is usually implemented as an auxiliary source, with the traditional diesel engine handling surface propulsion. Most such systems generate electricity which in turn drives an electric motor for propulsion or recharges the boat's batteries. The submarine's electrical system is also used for providing "hotel services"—ventilation, lighting, heating etc.—although this consumes a small amount of power compared to that required for propulsion.
• AIP can be retrofitted into existing submarine hulls by inserting an additional hull section. AIP does not normally provide the endurance or power to replace atmospheric dependent propulsion, but allows longer submergence than a conventionally propelled submarine. A typical conventional power plant provides 3 megawatts maximum, and an AIP source around 10% of that. A nuclear submarine's propulsion plant is usually much greater than 20 megawatts.

3.REGIONAL COMPREHENSIVE ECONOMIC PARTNERSHIP (RCEP)(gs-2,3)Context: Ahead of summit, Indian stand on RCEP unclear

• India will not sign a free trade agreement (FTA) just because there is a deadline, Union Commerce Minister Piyush Goyal said here on Wednesday. The comments come just days ahead of the Regional Comprehensive Economic Partnership (RCEP) summit meeting, which is expected to conclude the 16­nation FTA. Prime Minister Narendra Modi will attend the RCEP summit in Bangkok on November 4, and Mr. Goyal could also travel there on November 2 for the last RCEP ministerial round before the summit. But the government has kept all countries guessing on whether India will actually join the agreement.

REGIONAL COMPREHENSIVE ECONOMIC PARTNERSHIP (RCEP):

• RCEP is proposed between the ten member states of the Association of Southeast Asian Nations (ASEAN) (Brunei, Burma (Myanmar), Cambodia, Indonesia, Laos, Malaysia, the Philippines, Singapore, Thailand, Vietnam) and the six states with which ASEAN has existing FTAs (Australia, China, India, Japan, South Korea and New Zealand).
• RCEP negotiations were formally launched in November 2012 at the ASEAN Summit in Cambodia.
• Aim: RCEP aims to boost goods trade by eliminating most tariff and non-tariff barriers — a move that is expected to provide the region’s consumers greater choice of quality products at affordable rates. It also seeks to liberalise investment norms and do away with services trade restrictions.

Why has it assumed so much significance in recent times?

When inked, it would become the world’s biggest free trade pact. This is because the 16 nations account for a total GDP of about $50 trillion and house close to 3.5 billion people. India (GDP-PPP worth $9.5 trillion and population of 1.3 billion) and China (GDP-PPP of $23.2 trillion and population of 1.4 billion) together comprise the RCEP’s biggest component in terms of market size.

Why is India concerned?

Greater access to Chinese goods may have impact on the Indian manufacturing sector. India has got massive trade deficit with China. Under these circumstances, India proposed differential market access strategy for China.

There are demands by other RCEP countries for lowering customs duties on a number of products and greater access to the market than India has been willing to provide.

4.United Nations Climate Change conference(gs-3)Context:Chile pulls out from hosting climate and trade summits

• President Sebastián Piñera of Chile said on Wednesday that his country, which has been rocked by a wave of recent protests, was not in a position to host a key UN climate change meeting and major Asia­Pacific trade summit later this year. The announcements underscored how destabilising the recent wave of protests and acts of vandalism have been for the country, which has long been regarded as an exemplar of stability in a tumultuous region.

United Nations Climate Change conference:.

• The United Nations Climate Change Conferences are yearly conferences held in the framework of the United Nations Framework Convention on Climate Change (UNFCCC). They serve as the formal meeting of the UNFCCC Parties (Conference of the Parties, COP) to assess progress in dealing with climate change, and beginning in the mid-1990s, to negotiate the Kyoto Protocol to establish legally binding obligations for developed countries to reduce their greenhouse gas emissions. From 2005 the Conferences have also served as the "Conference of the Parties Serving as the Meeting of Parties to the Kyoto Protocol" (CMP);also parties to the Convention that are not parties to the Protocol can participate in Protocol-related meetings as observers. From 2011 the meetings have also been used to negotiate the Paris Agreement as part of the Durban platform activities until its conclusion in 2015, which created a general path towards climate action.
• The first UN Climate Change Conference was held in 1995 in Berlin

United Nations Climate Change conference 2020 will begin on
Monday, 9 November
and ends on
Thursday, 19 November

The 2019 United Nations Climate Change Conference, also known as COP25, was planned to be the 25th United Nations Climate Change conference. It was planned to be held in Santiago, Chile, between 2–13 December 2019 but was cancelled on 30 October due to 2019 Chilean protests.

5.National Unity Day,Rashtriya Ekta Diwas(gs-2)Context: PM Modi to lead nation on National Unity Day

• Prime minister Narendra Modi will lead the nation tomorrow in paying tributes to the Iron man of India, Sardar Vallabhbhai Patel. Sardar Patel's birthday is observed as National Unity Day. Preparations are on full swing across the country to celebrate the Day in a grand manner. Millions of people from the length and breadth of the country will take part in different events. 
• Prime Minister will pay tributes to Sardar Vallabhbhai Patel at the Statue of Unity, Kevadiya, Gujarat tomorrow. He will also participate at the Ekta Diwas Parade and visit the Technology Demonstration Site. Mr Modi will later interact with Civil Service Probationers at Kevadiya.
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• Since 2014, October 31st is observed as 'National Unity Day' and people from all walks of life participate in the Run For Unity. In his Mann Ki Baat Programme on last Sunday, Mr Modi had urged people to participate in large numbers in the ‘Run For Unity’ towards One Goal - “Ek Bharat Shreshth Bharat

Rashtriya Ekta Diwas:

• Rashtriya Ekta Diwas (National Unity Day) was introduced by the Government of India in 2014.
• The official statement for Rashtriya Ekta Diwas by the Home Ministry of India cites that the National Unity Day "will provide an opportunity to re-affirm the inherent strength and resilience of our nation to withstand the actual and potential threats to the unity, integrity and security of our country."
• The theme for 2016 celebrations was "Integration of India".
• In 2018 the holiday was celebrated in Gujarat with the dedication of the Statue of Unity, which honors and depicts Patel. It is the largest statue in existence.This day was first created and launched by the Government of India in 2014. Madhavpur beach festival running for this festival

6.Border Personnel Meeting (BPM)(gs-2,3)Context:Indian Army participates in Border Personnel Meeting organized by PLA

• Border Personnel Meeting (BPM) between the Indian Army and People's Liberation Army was conducted by the People 's Liberation Army on 30 October 2019 on the Chinese side at Bum La.
• The Border Personnel Meeting was marked by unfurling of both the National Flags followed by a formal address by the delegation leaders and discussion on various issues to enhance the existing mutual trust and bonhomie between World's two largest armies. The mutual desire to enhance cooperation and cordial relations was evident from the conducive environment that prevailed during the proceedings.
• The BPM on 30th Oct every year is in vogue since the signing of Border Peace and Tranquility agreement between both the Nations on 07 Sep 1993. In the last 26 years, the BPM mechanism has evolved into a vital platform for resolving local issues and fostering mutual confidence amongst the Border Guarding Troops of both the countries.

Border Personnel Meeting point:

• Border Personnel Meeting points are locations along the disputed Sino-Indian border where the armies of both countries hold ceremonial and practical meetings to resolve border issues and improve relations. While border meetings have been held since the 1990s, the first formal Border Personnel Meeting point was established in 2013. There are five meeting points, two in the Indian Union Territory of Ladakh, one in Sikkim, and two in Arunachal Pradesh

7.Department of Atomic Energy (DAE)(gs-3)Context:Malware in NPCIL system isolated, critical plant systems not affected: DAE

• Department of Atomic Energy (DAE) said that a malware was identified in the Nuclear Power Corporation of India Limited system and it was conveyed to them by the Indian Computer Emergency Response Team (CERT-In) on 4th September.
• DAE said that the investigation by its specialists revealed that the infected PC belonged to a user who was connected in the internet connected network used for administrative purposes and it is isolated from the critical internal network.
• DAE on Wednesday confirmed that the NPCIL plant systems are not affected and the networks are being continuously monitored.

Department of Atomic Energy :

• The Department of Atomic Energy (DAE) is a department directly under the Prime Minister of India with headquarters in Mumbai, Maharashtra, India.DAE was established in 1954 by a Presidential Order. DAE has been engaged in the development of nuclear power technology, applications of radiation technologies in the fields of agriculture, medicine, industry and basic research. DAE comprises five research centres, three industrial organisations, five public sector undertakings and three service organisations. It has under its aegis two boards for promoting and funding extramural research in nuclear and allied fields, mathematics and a national institute (deemed university). It also supports eight institutes of international repute engaged in research in basic sciences, astronomy, astrophysics, cancer research and education. It also has in its fold an educational society that provides educational facilities for children of DAE employees. The important programmes of the DAE are directed towards:
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• Enhancing the share of nuclear power in the Power Sector by deployment of indigenous and other proven technologies, and to develop fast breeder reactors, as well as thorium-based reactors with associated fuel cycle facilities;
• Building and operating of research reactors for the production of radioisotopes, building other sources of radiation such as accelerators and lasers, and developing and deploying radiation technology applications in the fields of medicine, agriculture, industry and basic research.
• Developing advanced technologies such as accelerators, lasers, supercomputers, robotics, areas related to Fusion research, strategic materials and instrumentation, and encouraging the transfer of technology to industry.
• Carrying out and supporting basic research in nuclear energy and related frontier areas of science; interaction with universities and academic institutions; support to research and development projects having a bearing on DAE’s programmes, and international cooperation in related advanced areas of research and contribution to national security.

8.U.S. Federal Reserve rates and India(gs-3)Context: US Federal Reserve cuts interest rates, sending S&P 500 to record high - as it happened

• The US central bank has cut interest rates for the third time this year in an attempt to keep the longest running period of growth in the country’s history continuing into the crucial election year of 2020.
• But the Federal Reserve put itself on a potential collision course with Donald Trump when it signalled to the financial markets that it had no immediate intention of cutting the cost of borrowing further.
• The president has put intense pressure on the Fed to boost the world’s biggest economy and his own re-election prospects by making aggressive cuts in the cost of borrowing.
• But the central bank’s chair, Jerome Powell, said there was a limit to what the Fed could do and that a more effective way to stimulate activity would be for Congress to loosen fiscal policy through spending increases or tax cuts.

U.S. Federal Reserve rates and India:

Why is it Important?

• Rate hikes and/or hawkish messaging by the Federal Reserve affects not only the U.S. economy, but also shapes the macroeconomic outlook and exerts a certain degree of influence on the monetary policies in other emerging economies.
• For instance, this hike by the Fed seems to have influenced, at least partially, the repo rate hike by 25 basis points that was implemented by the Reserve Bank of India’s (RBI) Monetary Policy Committee, in March 2019, effectively implying a reversal of the easy monetary policy regime that was being followed in the Indian economy for the past three years.

Why the U.S.A. Fed Rates Impact Emerging Economies?

• Emerging economies such as India tend to have higher inflation and higher interest rates than those in developed countries such as the U.S. and many of the (primarily Western) European nations.
• As a result, financial institutions, particularly foreign institutional investors (FIIs) would want to borrow money in the U.S. at low interest rates in dollar terms and then invest that money in government bonds of emerging countries such as India in local currency terms to earn a higher rate of interest.
• When the U.S. Fed raises its domestic interest rates, the difference between the interest rates of the two countries decreases, thus making India less attractive for the currency carry trade, consequently, some of the money may be expected to move out of the Indian markets and flow back to the U.S., therefore decreasing the value of India’s currency against the U.S. dollar.

How Increased Interest Rates Impact India?

On Equity Market

Bond yields will rise due to growing dollar shortage in the global market.

Last year, in India, the debt and equity markets have witnessed outflows of over 40,000 crore rupees, due to the strengthening dollar and uncertainties perpetrated by the trade war between the U.S., China, European Union, and other major nations.

On Export and Forex

India being one of the largest crude oil importers of the world, a weaker rupee vis-à-vis a dollar results in more expensive imports of crude oil that may put cost-driven inflationary push across the whole economy and especially in those sectors that are highly sensitive to crude oil price movements.

India’s exports on the other hand, notably IT and IT-enabled services – will benefit to some extent from a stronger dollar with respect to the rupee. However, the same benefit may not fully accrue to exporters due to strong competition in the export market.

9.MODI-MERKEL MEET(GS-2,3)CONTEXT:Angela Merkel to visit India with ministerial delegation, hold talks with PM Modi

• GErman Chancellor Angela Merkel will arrive here on Thursday with a delegation from 12 ministries and hold discussions on various bilateral topics with Prime Minister Narendra Modi, German envoy Walter J Lindner said.
• Sources said India and Germany are expected to sign about 20 agreements in a wide spectrum of areas during Merkel's visit.

Bilateral relations BETWEEN GERMANY AND INDIA …

Official visits by German Presidents & Chancellors…

• In 2008, German Chancellor Angela Merkel made an official visit to India that led to the signing of several agreements expanding bilateral co-operation in commerce, science, technology and defence.
• In 2013, German Chancellor Angela Merkel led a German delegation which included German Federal Ministers of Transport, Building & Urban Development, Interior, Defence, Education & Research, Parliamentary State Secretary for Environment, Nature Conservation and Nuclear safety; to the Second India-Germany Intergovernmental Consultations in New Delhi.
• On 4 October 2015, German Chancellor Angela Merkel travelled to India for the Third Indo-German Inter-Governmental Consultations accompanied by several members of her government (Minister for Foreign Affairs Frank-Walter Steinmeier, Science & Technology Minister Johanna Wanka, Minister for Economic Cooperation and Development Gerd Müller, Food and Agriculture Minister Christian Schmidt) and a contingent of business leaders. Merkel and her German delegation travelled on a German military cargo plane (a Luftwaffe Airbus A310 military transport aircraft called Kurt Schumacher) because the official government aircraft of the German Chancellor (Konrad Adenauer, a Luftwaffe Airbus A340-313 VIP) became unflightworthy after developing technical problems.The visit, announced by the German embassy in India as a turning point in Indo-German relations,suffered from poor timing and occurred in the context of negative public perception of Germany, brand "Made in Germany" and German corporate ethics - all of whom became tarnished by the rapid succession of highly visible public diplomacy disasters: revival of anti-German sentiments in southern and eastern Europe, deliberate air-crash of Germanwings Flight 9525 and the Volkswagen diesel emissions scandal.
• Narendra Modi with Angela Merkel in New Delhi, India on 5 October 2015
• On 5 October 2015, Angela Merkel visited Mahatma Gandhi's memorial at Raj Ghat and was accorded a ceremonial welcome at the Presidential Palace prior to the Third Indo-German Inter-Governmental Consultations which led to the signing of 18 Memorandums of Understanding (MoU).Germany returned a 10th-century relic, a statue of the Hindu goddess Durga in her Mahishasuramardini avatar, which had been stolen from India.
• On 6 October 2015, Prime Minister Narendra Modi held trade discussions on Indo-German science, technology & education cooperation with Angela Merkel in Bengaluru, India's aerospace and ICT hub, besides exploring opportunities to improve bilateral trade.Merkel and Modi toured the vocational training facilities and innovation centreof Robert Bosch - an OEM automotive parts supplier whose software is at the centre of the Volkswagen diesel emissions test violations scandal.Angela Merkel's 3-day official visit to India concluded after the two leaders attended a business & technology forum hosted by NASSCOM and Fraunhofer Institute where Merkel said: "India needs jobs, Germany needs people and collaboration is crucial to meet the demographic needs of both countries,"and opined that the advantages for German companies in India are its huge market, a great growth potential and an impressive capacity for innovation.
• Foremost newspapers in both Germany and India focussed primarily on the trade and investment aspects of the visit.Germany's State broadcaster Deutsche Welle eloquently captured the prevailing mood regarding the visit with its editorial titled:"A first step in the right direction – no more, no less". Indian Express in an editorial titled "She came and went" pondered over the modest nature of agreements announced during the visit and placed the onus on India to raise its attractiveness as a partner through concrete socio-economic progress and improvements in bilateral relations in India's immediate neighbourhood.[56] The Hindu termed the visit as a dosis realitaet reality-check for Merkel and Modi

10.SARDAR VALLABH BHAI PATEL(GS-1)

• Vallabhbhai Patel was a political and social leader who played a major role in the country's struggle for independence and subsequently guided its integration into a united, independent nation.
• Women of Bardoli bestowed the title Sardar to Vallebhai Patel, which in Gujarati and most Indian languages means Chief or Leader.
• Vallabhbhai Patel was inspired by the work and philosophy of Mahatma Gandhi. Patel subsequently organised the peasants of Kheda, Borsad, and Bardoli in Gujarat in a non-violent civil disobedience movement against oppressive policies imposed by the British Raj.
• He rose to the leadership of the Indian National Congress and was at the forefront of rebellions and political events, organising the party for elections in 1934 and 1937, and promoting the Quit India movement.
• As the first Home Minister and Deputy Prime Minister of India, Patel organised relief for refugees in Punjab and Delhi, and led efforts to restore peace across the nation.
• Patel took charge of the task to forge a united India from over 560 semi-autonomous princely states and British-era colonial provinces. Using frank diplomacy backed with the option (and the use) of military action, Patel's leadership enabled the accession of almost every princely state.
• Hailed as the Iron Man of India, he is also remembered as the "Patron Saint" of India's civil servants for establishing modern all-India services.
• Patel was also one of the earliest proponents of property rights and free enterprise in India.

Statue of Unity:

• The Statue of Unity which is built in honour of Sardar Vallabhbhai Patel is dedicated to the nation.
• Sardar Patel is credited with uniting over 560 princely states in pre-independent India to build the Republic of India, hence the name of the statue is christened as ‘Statue of Unity’.
• The date for the inauguration of the statue (October 31, 2018) also marks the 143rd birth anniversary of Sardar Patel.
• It is located on the Sadhu Bet island on the Narmada river, which flows between the Satpura and the Vindhya mountain ranges.
• The Statue of Unity is the tallest statue in the world. At 182 metres, it is 23 metres taller than China's Spring Temple Buddha statue and almost double the height of the Statue of Liberty (93 metres tall) in US.
• The viewing gallery for the statue, at 153 metres, can accommodate 200 people at a time and offer an expansive view of the Sardar Sarovar Dam.
• The statue is a three-layered structure. The innermost layer is made of reinforced cement concrete (RCC), comprising two towers 127 metres high that rise till the statue's chest. The second layer is a steel structure and the third an 8 mm bronze cladding on the surface.
• It was built within three-and-a-half years by more than 3,000 workers, including 300 engineers from infrastructure major Larsen & Toubro (L&T).
• The Statue of Unity was designed by Padma Bhushan recipient sculptor Ram V Sutar and intricate bronze cladding work was done by a Chinese foundry, the Jiangxi Toqine Company (JTQ).

Run for Unity and Ek Bharat Shreshtha Bharat

• Run for unity:
• 'Run for unity’ Marathon has been organised in various parts of the country to commemorate the 143rd birth anniversary of Sardar Vallabhbhai Patel.
• Ek Bharat Shreshtha Bharat:
• “Ek Bharat Shreshtha Bharat” was announced by the Prime Minister in 2015 on the occasion of the 140th birth anniversary of Sardar Vallabhbhai Patel. Subsequently, the Finance Minister announced the initiative in his Budget Speech for 2016-17.
• Through this innovative measure, the knowledge of the culture, traditions and practices of different States & UTs will lead to an enhanced understanding and bonding between the States, thereby strengthening the unity and integrity of India.

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