CURRENT AFFAIRS 9 OCTOBER 2019

CURRENT AFFAIRS 

9 OCTOBER 2019

BY SUMIT 

1.Rafale(gs-2,3)

• Context: Defence Minister Rajnath Singh receives IAF’s first Rafale fighter jet from France
• The Indian Air Force on Tuesday received its first Rafale fighter jet from a series of 36 aircraft purchased from France in presence of Defense Minister Rajnath Singh here.
• Singh attended the handover ceremony of the first Rafale fighter jet acquired by the IAF along with his French counterpart Florence Parly at aircraft maker Dassault Aviation facility in Merignac, southwestern France.
• India had ordered 36 Rafale fighter jets from France in a deal worth Rs 59,000 crore in September 2016. The first batch of four Rafale jets will fly to their home base in India by May 2020.
• All 36 jets are expected to arrive in India by September 2022, for which the IAF has been reportedly undertaking preparations, including readying required infrastructure and training of pilots.

Rafale:

• The Rafale is a twin-jet fighter aircraft able to operate from both an aircraft carrier and a shore base. The manufacturers describe it as a fully versatile aircraft which can carry out all combat aviation missions to achieve air superiority and air defence, close air support, in-depth strikes, reconnaissance, anti-ship strikes and nuclear deterrence.
• The Dassault Rafale (literally meaning "gust of wind",and "burst of fire" in a more military sense) is a French twin-engine, canard delta wing, multirole fighter aircraft designed and built by Dassault Aviation. Equipped with a wide range of weapons, the Rafale is intended to perform air supremacy, interdiction, aerial reconnaissance, ground support, in-depth strike, anti-ship strike and nuclear deterrence missions. The Rafale is referred to as an "omnirole" aircraft by Dassault.
• In the late 1970s, the French Air Force and Navy were seeking to replace and consolidate their current fleets of aircraft. In order to reduce development costs and boost prospective sales, France entered into an arrangement with UK, Germany, Italy and Spain to produce an agile multi-purpose fighter, the Eurofighter Typhoon. Subsequent disagreements over workshare and differing requirements led to France's pursuit of its own development programme. Dassault built a technology demonstrator which first flew in July 1986 as part of an eight-year flight-test programme, paving the way for the go-ahead of the project. The Rafale is distinct from other European fighters of its era in that it is almost entirely built by one country, involving most of France's major defence contractors, such as Dassault, Thales and Safran.
• Many of the aircraft's avionics and features, such as direct voice input, the RBE2 AA active electronically scanned array (AESA) radar and the optronique secteur frontal infra-red search and track (IRST) sensor, were domestically developed and produced for the Rafale programme. Originally scheduled to enter service in 1996, the Rafale suffered significant delays due to post-Cold War budget cuts and changes in priorities. The aircraft is available in three main variants: Rafale C single-seat land-based version, Rafale B twin-seat land-based version, and Rafale M single-seat carrier-based version.
• Introduced in 2001, the Rafale is being produced for both the French Air Force and for carrier-based operations in the French Navy. The Rafale has been marketed for export to several countries, and was selected for purchase by the Indian Air Force, the Egyptian Air Force, and the Qatar Air Force. The Rafale has been used in combat over Afghanistan, Libya, Mali, Iraq and Syria. Several upgrades to the weapons and avionics of the Rafale are planned to be introduced by 2018.

Taking a sortie in Rafale was a memorable and once in a lifetime experience. The induction of Rafale will go a long way in strengthening our national defence.

India will receive the first 18 Rafale jets by February 2021. By April-May 2022 we will receive all 36 jets. pic.twitter.com/we4UeSwdG5

— Rajnath Singh (@rajnathsingh) October 8, 2019

 2.Modi – Xi Second Informal Summit in Mamallapuram(gs-1,2)

Context:India, China relations are of global signifcance:envoy

• The Indian Prime Minister Narendra Modi and his Chinese counterpart Xi Jingping would be visiting Mamallpuram, Tamil Nadu for the second edition of informal summit between India and China. The shore temple at the town is to get world class illumination for the summit.

• Mamallapuram
• 

•  The place is also known as Seven Pagodas or Mahabalipuram. Marco Polo and other Europeans named it Seven Pagodas. It is believed that 6 more temples stood along with the lone standing shore temple. Hence the name Seven Pagodas. The 2004 Tsunami exposed an old collapsed temple built of granite and was a part of Seven Pagodas. It is a historic town and was a seaport in the 1st millennium. It was declared as UNESCO World Heritage site. 
• The famous monuments in the town include temples in the form of chariots, giant open rock sculpture, cave sanctuaries, Descent of the Ganges and a Shore temple Shore Temple The temple overlooks Bay of Bengal. It was built during the Pallava dynasty. 
• It is a cave temple. Lord Vishnu shrine is placed between two shrines of Lord Shiva. The structures have multi – storied pyramidal superstructures typical of the Dravidian style. 
• The leaders are to meet in the temple. 
• They will have a pradhakshan (a walk around the temple) and hold talks in a bench that is to be installed facing the temple. Descent of the Ganges It is a monument at Mamallapuram. It is an open – air relief carved on two monolithic rocks..
•  The monument depicts the story of descent of the sacred river Ganges to the earth from heavens. It also portrays Arjuna’s penance. The monument was sculpted in the period of Pallavas. 

• Wuhan summit 

• The first informal meet between the leaders was held at Wuhan, China in April 2018. The leaders exchanged views on issues of bilateral and global importance. The simultaneous emergence of India and China as two large economies has implications in regional and global significance. The summit was to address the imbalances created in the process. They agree that proper management of the bilateral relationship will be conducive for the development of the region. They also discussed about terrorism, disaster risk reduction, combating diseases, addressing climate change, etc.

3. C40 Cities Climate Summit in Copenhagen(gs-2,3)

• Context: Delhi CM’s Copenhagen trip stalled
• The Aam Aadmi Party (AAP) on Tuesday attacked Prime Minister Narendra Modi for the Centre's decision to withhold sanction for Chief Minister Arvind Kejriwal to attend the C40 Cities Climate Summit in Copenhagen
• 

C40 Cities Climate Summit in Copenhagen:

• The C40 Mayors Summit, takes place every three years, bringing together the mayors and leaders of the 96 member cities of the C40 network from across the globe. The Copenhagen Summit will celebrate and share the most effective climate solutions being delivered in cities worldwide. Mayors, CEOs, philanthropists, investors, scientists and citizens will come together to shift global markets and create the sustainable, prosperous and healthy future for the world’s great cities.
• Previous C40 summits have been hosted by London, New York, Seoul, São Paulo, Johannesburg and Mexico City.

4.Nobel prize in physics awarded for discoveries in cosmology(gs-3)

• Nobel Prize 2019 for Physics has been announced. Three scientists, James Peebles, Michel Mayor and Didier Queloz have won the Prize for their contribution to the understanding of the evolution of the universe and earth's place in the cosmos.

• One half of the award was given to James Peebles for theoretical discoveries in physical cosmology and the other half jointly to Michel Mayor and Didier Queloz for the discovery of an exoplanet orbiting a solar-type star.

• They will share a 9-million kronor cash award, a gold medal and a diploma. The laureates will receive them at a ceremony in Stockholm on December 10. 

BREAKING NEWS:
The 2019 #NobelPrize in Physics has been awarded with one half to James Peebles “for theoretical discoveries in physical cosmology” and the other half jointly to Michel Mayor and Didier Queloz “for the discovery of an exoplanet orbiting a solar-type star.” pic.twitter.com/BwwMTwtRFv

— The Nobel Prize (@NobelPrize) October 8, 2019

 5.Sixth Schedule, Tribal Areas and Autonomous District / Regional Councils(gs-2)

• Context: Stop exclusion from SixthSchedule: Meghalaya tribes
• Organisations representing five minor tribes in Meghalaya have asked Chief Minister Conrad K. Sangma to intervene in the move to exclude them from the provisions of the Sixth Schedule of the Constitution. The five minor tribes – Bodo­Kachari, Hajong, Koch, Mann and Rabha – are clubbed as “unrepresented tribes” for nomination in Meghalaya’s autonomous tribal councils. These councils are in the names of Garo, Jaintia and Khasi, the State’s three major matrilineal communities.

Sixth Schedule, Tribal Areas and Autonomous District / Regional Councils:

• The Constitution of India makes special provisions for the administration of the tribal dominated areas in four states viz. Assam, Meghalaya, Tripura and Mizoram. As per article 244 and 6th Schedule, these areas are called “Tribal Areas“, which are technically different from the Scheduled Areas under fifth schedule.

Difference Between 5th Schedule and 6th Schedule Areas 

• While both the areas under 5th schedule and 6th schedule have dominance of the tribal people, constitution calls them with different names viz. Scheduled Area under 5th schedule while Tribal areas under 6th schedule. While executive powers of the union extend in Scheduled areas with respect to their administration in 5th schedule; the 6th schedule areas remain within executive authority of the state. While 5th schedule envisages creation of Tribal Advisory Council , 6th schedule provides for District Councils and Regional Councils with certain legislative and judicial powers.

Autonomous Districts and Autonomous Regions 

• Governors of four states viz. Assam, Meghalaya, Tripura and Mizoram are empowered to declare some tribal dominated districts / areas of these states as autonomous districts and autonomous regions by order. No separate legislation is needed for this. The Governor also has power to include any other area, exclude any area, increase, decrease, diminish these areas, unite two districts / regions, and alter the names and boundaries of these autonomous districts and regions.

Creation of autonomous district councils and regional councils 

• Article 244 and 275 make provision for creation of the District Councils and regional councils. Each district / regional council is a body corporate which is empowered for administration of the area under its jurisdiction. They are named as “District council of (name of district) and Regional Council of (name of region). These two bodies have perpetual succession and a common seal and shall by the said name sue and be sued.

Members of autonomous councils 

• The District Councils and Regional Councils are consisting of maximum 30 members, of whom maximum 4 members shall be nominated by the Governor and the rest shall be elected on the basis of adult suffrage. However, this rule has an exception. The current provision is that the Bodoland Territorial Council can have 46 members and out of these 46, 40 are elected on the basis of adult suffrage. These 40 seats are divided as follows: 30 seats are reserved for the Scheduled Tribes 5 seats are reserved for non-tribal communities 5 seats are unreserved The remaining six seats are nominated by the Governor from amongst the un-represented communities of the Bodoland Territorial Areas District Out of these 6, at least 2 are women.

Current Councils 

• Currently, there are ten such Councils in the region as listed below: 
• Assam Bodoland Territorial Council Karbi Anglong Autonomous Council Dima Hasao Autonomous District Council 
• Meghalaya Garo Hills Autonomous District Council Jaintia Hills Autonomous District Council Khasi Hills Autonomous District Council 
• Tripura Tripura Tribal Areas Autonomous District Council Mizoram Chakma Autonomous District Council Lai Autonomous District Council Mara Autonomous District Council

6.Comprehensive National Nutrition Survey (CNNS)(gs-2)

• Context:Rural children breastfed more: survey
• Breastfeeding inversely proportional to household wealth, says Comprehensive National Nutrition Survey

• Malnutrition among children in urban India is characterised by relatively poor levels of breastfeeding, higher prevalence of iron and Vitamin D deficiency as well as obesity due to long commute by working mothers, prosperity and lifestyle patterns, while rural parts of the country see higher percentage of children suffering from stunting, underweight and wasting and lower consumption of milk products — these are among the findings of the first­ever national nutrition survey conducted by the government.
•  The Comprehensive National Nutrition Survey released by the government on Monday shows that 83% of children between 12 and 15 months continued to be breastfed, a higher proportion of children in this age group residing in rural areas are breastfed (85%) compared to children in urban areas (76%). Inversely proportional Breastfeeding is inversely proportional to household wealth and other factors in­ fluencing this trend may include working mothers who have to travel long distances to reach their workplace. 
• Because of these reasons, it also noted that rural children receive meals more frequently in a day at 44% as compared to 37% of urban children. However, a higher proportion of children residing in urban areas (26.9%) are fed an adequately diverse diet as compared to those in rural areas (19%). 
• Children and adolescents residing in urban areas also have a higher (40.6%) prevalence of iron deficiency compared to their rural counterparts (29%), Experts say this is due to a better performance of the government’s health programmes in rural areas. Children in urban areas are also overweight and obese as indicated by subscapular skinfold thickness (SSFT) for their age. 
• While 14.5% of children in the age group of 5 to 9 years in cities had higher SSFT than 5.3% in rural areas, 10.4% of adolescents surveyed in urban areas in the age group of 10­ 19 had higher SSFT than 4.3% in rural areas

Comprehensive National Nutrition Survey (CNNS):

• Comprehensive National Nutrition Survey (CNNS), a cross-sectional, household survey covering more than 1,20,000 children and adolescents (0-19 years) in both urban and rural areas across all 30 states of India, is being conducted by the Ministry of Health and Family Welfare (MoHFW), Government of India in partnership with UNICEF. It aims to assess the national prevalence of biological indicators (micronutrient deficiencies, subclinical inflammation, and worm infestation) and prevalence of overweight/obesity, along with information on body composition, cardio-metabolic risk, muscular strength, and fitness.
• CDSA was selected as the national monitoring agency to conduct concurrent monitoring of CNNS biological samples (blood, urine and stool). This monitoring includes, but not limited to primary sample collection at PSUs, processing at collection centres, shipment, and analysis at a central laboratory. CDSA provides ongoing feedback to the central laboratory team and informs lead survey agency and UNICEF on the quality of biological data collection, processing, transportation, analysis, and report

7.Hind Kush Himalayas(gs-1,3)

• Context:India to work with China, Pakistan
• to gauge impact of climate change
• A regional centre will help to better forecast impact on Hindu 
• Kush mountains
• To better gauge the impact of climate change on the Hindu Kush mountains, which includes the Himalayas, and spruce up data­gathering, the India Meteorological Department (IMD) will collaborate with meteorological agencies in China and Pakistan, among others, to provide climate forecast services to countries in the region. Earlier this month, the IMD organised a workshop to discuss ways to establish a regional climate centre that will provide forecasting services and climate analyses.

Hind Kush Himalayas

• Part of the great Himalayan range, and spread over 3,500 square kilometres, the HKH region is shared by eight countries, including India and China.
• It is also known as Third Pole due to its largest permanent snow cover after the North and South Poles — sustains the livelihoods of 240 million people living in the mountains and hills.
• It also houses the origin of 10 river basins that include the Ganga, the Brahmaputra and the Mekong.

HINDU KUSH HIMALAYAN ASSESSMENT REPORT:

Context

• 
  
• International Centre for Integrated Mountain Development (ICIMOD), a regional intergovernmental body has released the first-ever assessment of climate change impacts on the Hindu Kush Himalayan (HKH) region.
• The ICIMOD is pursuing 8 countries, including India, to set up an inter-governmental body to protect the Hindu Kush Himalayan region, known as the water tower of Asia.

Main findings of the report

• HKH region is warming faster than the global average. It would continue to warm through this century even if the world is able to limit global warming at the agreed 1.5 degrees Celsius.
• The per capita fossil fuel carbon dioxide emission from the HKH countries is one-sixth of the global average though it is disproportionately impacted.
• In the last 60 years, extreme cold events have become lesser while extreme warm weather events have become more pronounced. Both minimum and maximum temperatures are also changing: they are moving north, indicating overall warming.
• Every decade HKH loses one cold night and half a cold day. While warm nights have increased by 1.7 per decade, the region gets 1.2 warm days every decade.
• Alarmingly, changes in surface temperature (relative to 1976-2005) in this Himalayan region are higher than the global average, and even the South Asian region.
• The projected changes in the surface mean temperature over the HKH region are larger compared to the global mean change by the end of the 21st century.
• Although the climate of the region has changed significantly in the past, it is projected to change more dramatically in the near future.
• The number of glaciers in the Himalayan area has increased in the last five decades and this is an indicator of how severe glacier melting has been due to global warming.
• The increase in the number of glaciers is primarily due to glacier fragmentation — that big ones are splitting into smaller ones. And this is happening due to consistent loss in areas the glaciers occupy.
• Smaller glaciers are shrinking faster than larger ones, although the smaller glaciers of Ladakh show a lower rate of retreat than other Himalayan glaciers. However, the assessment makes clear that despite the surety of glaciers in the Hindu Kush Mountains losing length since 1973, no studies have been done to examine area change in this region.
• In 1998-2014, when the global warming slowed down, this region continued to warm.
• In the 20th century, the HKH region oscillated between warming and cooling phases. In the first 40 years, it reported warming to be followed by a cooling phase in 1940-1970.
• However, since 1970 it has been warming, and as assessed it would continue to be through the current century.
• Warming may be good news for agriculture as the length of the growing season has increased by 4.25 days per decade — a positive change for agriculture.

Consequences of warming of Hind Kush

• It has ramifications for the global climate. This region is a heat source in summer and a heat sink in winter.
• Along with the Tibetan Plateau, this influences the Indian summer monsoon. So, any changes in this region would have a bearing on the monsoon itself that already shows signs of changes in spread and distribution.
• It could trigger a multitude of biophysical and socio-economic impacts, such as biodiversity loss, increased glacial melting, and less predictable water availability—all of which will impact livelihoods and well-being in the HKH.
• Faster snow and glacier melting due to warming is already manifesting in formation of glacial lakes. Glacial lake outburst floods (GLOF) are becoming frequent and causing huge casualties and loss to local infrastructures.
• Glaciers in HKH have been retreating faster, and consistently causing greater water flows in rivers. In Tibetan Plateau, river run off has increased by 5.5 per cent.
• Most of the lakes in high altitudes have also reported water level rise by 0.2 m/year besides their surface areas expanding.

 International Centre for Integrated Mountain Development

• 
  

  It is a regional intergovernmental learning and knowledge sharing centre serving the eight regional member countries of the Hindu Kush Himalaya – Afghanistan, Bangladesh, Bhutan, China, India, Myanmar, Nepal, and Pakistan – and based in Kathmandu, Nepal.
• 
  

  It aims to assist mountain people to understand these changes, adapt to them, and make the most of new opportunities, while addressing upstream-downstream issues.

8.Foreign Portfolio Investment(FPI)(gs-3)

• Context:FPI flows stay muted post tax rate cuts 
• The corporate tax rate cuts announced by the government last month has had only a marginal effect on foreign portfolio investors (FPIs) who have been net sellers in most trading sessions since the reduction in the levy was announced

Foreign Portfolio Investment

Portfolio investments characteristically encompass transactions in securities that are highly liquid, i.e. they can be bought and sold very fast. A portfolio investment is an investment made by an investor who is not involved in the management of an organization. A foreign portfolio investment is an investment activity that involves the purchase of stocks, bonds, commodities, or money market instruments that are based in a different country. Fundamentally, foreign portfolio investment involves buying of securities, traded in another country, which are highly liquid in nature and, therefore, allow investors to make "quick money" through their frequent buying and selling. Such securities may include instruments like stocks and bonds, and unlike shares, they do not give managerial control to the investor in a company. In some cases, these types of investments are short-term in nature, allowing the investor to quickly take advantage of favourable exchange rates to buy and sell the assets. At other times, the foreign portfolio investment is acquired with plans of holding onto the asset for an extended period of time. The Foreign Exchange Management Act 2000 describes Foreign Portfolio Investment as buying and selling of shares, convertible debentures of Indian companies, and units of domestic mutual funds at any of the Indian stock exchanges. It is the reflexive holding of securities such as foreign stocks, bonds, or other financial assets, none of which entails active management or control of the securities issues by the investor.

Analysing historical records, in 1992, India opened up its economy and permitted foreign portfolio investment in its domestic stock market. India is more dependent upon FPI than FDI as a source of foreign investment. During 1992 -2005 more than 50 percent of foreign investment in India came from FPI. Foreign portfolio investment flows have been the most instable component of capital flows in India and has major role in determining the overall balance of payments. During the Asian crisis as well as during the recent sub-prime crisis, it was the huge reversal of FPI flows that led to deterioration in the overall balance of payments. This is because by their very nature FPI flows do not involve a long lasting interest in the economy. The ultimate aim of FPIs is to ensure profits and risk diversification.

After that foreign portfolio investment has developed as a major source of private capital inflow in this country India is more dependent upon FPI than FDI as a source of foreign investment. During 1992 -2005 more than 50 percent of foreign investment in India came from FPI.

FPI flow can help economy:

It can be said that a foreign portfolio investment is no different from purchasing investments that are domestic in nature. Financiers will consider the financial situation of the entity that is issuing the investment, assess the potential for that investment to generate returns over a specific period of time, and consider what type of events could occur that would have a negative impact on the growth potential of that holding. Consideration of the ease of trading the asset when and as desired will also be a factor that investors will assess before selecting to make the purchase.

There are several characteristics of a foreign portfolio investment. Normally, the investor does not desire to be vigorously involved within the management of the asset. Additionally, the investment will not provide the investor with a controlling interest in the issuing company. While the number of shares acquired may be significant, the shares will not position the investor so that he or she has a great deal of control over how the issuer conducts business. Along with the somewhat hands-off nature of a foreign portfolio investment, there may also be certain tax necessities that the investor has to both the nation in which the assets are based and his or her own home country.

Under suitable conditions, a foreign portfolio investment can be effective way to generate a good return in short time. This is managed by paying more attention to current conditions in the foreign exchange market. If the investor can use the right currency to make the purchase, then sell that same investment when exchange rates are in his or her favor, there is the chance to not only earn returns from the upward movement of the investment itself, but also from the current rate of exchange between the two currencies involved.

Factors affecting Portfolio: 

1. Tax rates on interest or dividends
2. Interest rates
3. Exchange rates

Benefits of Foreign Portfolio Investment

Foreign portfolio investment augments the liquidity of domestic capital markets, and can help develop market efficiency as well. As markets become more liquid, as they become deeper and array of investments can be financed. New enterprises, for example, have a greater opportunities of receiving start-up financing. Savers have more opportunity to invest with the assurance that they will be able to manage their portfolio, or sell their financial securities quickly if they need access to their savings. In this way, liquid markets can also make longer-term investment more attractive.

Foreign portfolio investment can also bring discipline and knowledge into the domestic capital markets. In broader market, investors will have greater incentives to expend resources in investigating new or emerging investment opportunities. As enterprises compete for financing, they will face demands for better information, both in terms of quantity and quality. This press for fuller disclosure will promote transparency, which can have positive spill-over into other economic sectors.

Foreign portfolio investors, without the advantage of an insider's knowledge of the investment opportunities, are especially likely to demand a higher level of information disclosure and accounting standards, and bring with them experience utilizing these standards and a knowledge of how they function.

Foreign portfolio investment assist to promote development of equity markets and the shareholders' voice in corporate governance. As companies compete for finance the market will reward better performance, better prospects for future performance, and better corporate governance. As the market's liquidity and functionality progresses, equity prices will increasingly reflect the fundamental values of the firms, enhancing the more efficient allocation of capital flows. Well-functioning equity markets will also enable takeovers, a point where portfolio and direct investment overlap. Takeovers can turn a poorly functioning firm into an efficient and more profitable firm, strengthening the firm, the financial return to its investors, and the domestic economy.

Foreign portfolio investors also support the domestic capital markets by introducing more sophisticated instruments and technology for managing portfolios. For instance, they may bring with them a facility in using futures, options, swaps and other hedging instruments to manage portfolio risk.

Increased demand for these instruments would be conducive to developing this function in domestic markets, improving risk management opportunities for both foreign and domestic investors. Foreign portfolio investment can help to support domestic capital markets and improve their functioning. This will lead to a better allocation of capital and resources in the domestic economy, and thus a healthier economy. Open capital markets also contribute to international economic development by improving the worldwide allocation of savings and resources. Open markets give foreign investors the opportunity to diversify their portfolios, improving risk management and possibly fostering a higher level of savings and investment.