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Distribution: yearly

  • Fernarium at Eravikulam National Park

    fern

    Eravikulam National Park, located in Munnar, India, is known for its natural habitat of Nilgiri Tahr, and has recently introduced a new attraction – a Fernarium.

    What are Ferns?

    • Ferns are a type of vascular plant that reproduces via spores, rather than seeds.
    • They have distinctive leaves, called fronds, which are often intricately divided into smaller leaflets.
    • Ferns can grow in a wide variety of environments, from rainforests to deserts, and they play an important role in many ecosystems as a habitat for animals, as well as by providing food and shelter for a variety of other plants.

    Importance of Ferns

    • Ferns are ecological indicators of healthy forests, and the climatic conditions inside the park are suitable for growing ferns.
    • Ferns are part of the Epiphytic family and grow naturally in soilless conditions.
    • They obtain water and nutrients through leaching from trees, and a large number of ferns are found on trees inside the park.

    Fernarium @ Eravikulam

    • The Fernarium is a collection of ferns and it is the first of its kind in Munnar.
    • Currently, 52 varieties of ferns have been planted, and the plan is to cover all 104 varieties that are found in the park.
    • This initiative aims to provide visitors with awareness about the biodiversity of the park.

    Back2Basics: Eravikulam National Park

    Location Perched 7000 ft. above sea level, the Park was a former hunting preserve of British planters
    Designation Declared a Sanctuary in 1975, and a National Park in 1978
    Significance Protects the highly endangered mountain goat, Nilgiri Tahr, and is the land of the Neelakurinji flower that blooms once in twelve years
    Extent Covers an area of 97 sq. km of rolling grasslands and high-level sholas
    Climate Receives heavy showers during the southwest (June/July) and retreating (October/November) Monsoons; one of the wettest areas in the world
    Topography Undulating terrain with grass, hillocks, and sholas; highest peak south of the Himalayas, the Anamudi, is located here
    Vegetation Majorly covered with rolling grasslands, with several patches of shola forests; important flora includes Actinodaphne bourdilloni, Microtropis ramiflora, Strobilanthus Kunthianus (Neela Kurinji), etc.
    Wildlife Population 29 species of mammals, including the endemic Nilgiri Tahr, Gaur, Sloth Bear, Nilgiri Langur, Tiger, Leopard, Giant Squirrel, and wild dog; 140 species of birds, including 10 unique to the Western Ghats; more than 100 varieties of butterflies and 20 species of amphibians are also recorded here.

     

  • ICJ and Climate Justice

    Central idea: On March 29, the United Nations General Assembly passed a resolution that requested an advisory opinion from the International Court of Justice (ICJ) regarding the obligations countries have towards climate change reduction.

    Facts for prelims: International Court of Justice (ICJ)

    • The ICJ is the principal judicial organ of the United Nations (UN).
    • It was established in June 1945 by the Charter of the United Nations and began work in April 1946.
    • The court is the successor to the Permanent Court of International Justice (PCIJ), which was brought into being through, and by, the League of Nations.
    • It held its inaugural sitting at the Peace Palace in The Hague, Netherlands, in February 1922.
    • After World War II, the League of Nations and PCIJ were replaced by the United Nations and ICJ respectively.
    • The PCIJ was formally dissolved in April 1946, and its last president, Judge José Gustavo Guerrero of El Salvador, became the first president of the ICJ.
    • Four Indians have been members of the ICJ so far.
    • Justice Dalveer Bhandari, former judge of the Supreme Court, has been serving at the ICJ since 2012.

     

    Vanuatu seeks climate reparations

    • The resolution, which was passed by consensus, was pushed through by the Pacific Island of Vanuatu, which was devastated by Cyclone Pam in 2015.
    • This resolution is significant because it invokes article 96 of the U.N. Charter and seeks to clarify the legal obligations of states to protect the climate system.

    Resolution A/77/L.58: What does it seek?

    The draft resolution (A/77/L.58) asks the ICJ to deliberate on two questions:

    1. Obligations of states: Under international law to ensure the protection of the climate system for present and future generations
    2. Legal consequences: For states that have caused significant harm to the climate system, particularly for Small Island Developing States (SIDS) and for people who are harmed?

    Frameworks invoked by Vanuatu

    The resolution refers to several international protocols, including the-

    1. Paris Agreement
    2. United Nations Convention on the Law of the Sea and
    3. Universal Declaration of Human Rights

    What do sponsors of the resolution want?

    • The sponsors of the resolution expect an advisory opinion from the ICJ to bolster the efforts under the global climate pledge.
    • The opinion is also expected to clarify more contentious issues, such as-
    1. Climate reparations by the developed world,
    2. Legal culpability for countries that don’t achieve their NDC promises
    3. Climate support to the most vulnerable parts of the world

    Where does India stand over this?

    • India has been silent about the resolution, although it is generally supportive of climate justice and holding the developed world accountable for global warming.
    • India did not co-sponsor the draft resolution, unlike its neighbors Bangladesh, Maldives, Nepal, and Sri Lanka.

    If ICJ intervenes, what would change?

    • Only advisory opinion: The ICJ is being asked for an advisory opinion, which would not be legally binding as an ICJ judgment.
    • Puts moral obligation: The ICJ carries “legal weight and moral authority”.
    • Symbolic significance: ICJ’s clarification of international environmental laws would make the process more streamlined, particularly as the COP process looks at various issues like climate finance, climate justice, and the most recently agreed to “loss and damages” etc.

    Conclusion

    • The resolution passed by the UNGA requesting an advisory opinion from the ICJ is a step in the right direction towards clarifying the legal obligations of states to mitigate climate change and protect the environment for future generations.
    • To ensure the success of this effort, countries need to continue to engage in diplomatic efforts and work towards shared goals.
    • Countries should also actively participate in the ICJ process and respect the advisory opinion it delivers.

  • India and Malaysia to settle trade in INR

    india

    India and Malaysia have agreed to settle their trade in Indian rupees instead of the US dollar.

    What is the move?

    • The Reserve Bank of India (RBI) had allowed the settlement of international trade in the Indian rupee in July 2022.
    • Malaysia was one of the eighteen countries that were permitted to open Special Rupee Vostro Accounts (SRVAs) to settle payments in Indian rupees.

    Volume of bilateral trade

    • India-Malaysia bilateral trade reached $19.4 billion during 2021-22.
    • Malaysia is the third-largest trading partner of India in the ASEAN region, after Singapore and Indonesia, with $30.1 billion and $26.1 billion in bilateral trade with India.

    Facts for prelims: Nostro and Vostro Accounts

    Nostro and vostro accounts are two types of accounts used in international trade and banking to facilitate foreign currency transactions.

    A Nostro account is a foreign currency account held by a domestic bank in a foreign bank. It is used to facilitate international transactions, such as foreign currency payments, and to hold foreign currency deposits. The word “nostro” means “ours” in Italian, and the term reflects the fact that the foreign bank holds the domestic bank’s funds on its behalf.

    A Vostro account, on the other hand, is a domestic currency account held by a foreign bank in a domestic bank. It is used by the foreign bank to hold domestic currency deposits, and to facilitate domestic currency transactions such as payments to local vendors. The word “vostro” means “yours” in Italian, and the term reflects the fact that the domestic bank holds the foreign bank’s funds on its behalf.

     

    What are Special Rupee Vostro Accounts (SRVAs)?

    • SRVAs are a mechanism introduced by the RBI to allow banks from certain countries to open accounts in Indian rupees with Indian banks.
    • These accounts can be used to settle trade transactions between the two countries in Indian rupees, instead of using other currencies.
    • The aim of this initiative is to facilitate the growth of global trade and to support the interests of the global trading community in Indian rupees.
    • The Union Bank of India has become the first bank in India to operationalize this option by opening a SRVA through its corresponding bank in Malaysia – India International Bank of Malaysia.
    • Banks from 18 countries so far are allowed by the RBI to open Special Rupee Vostro Accounts (SRVAs) to settle payments in Indian rupees.

    Significance of the move

    • The move aims to provide better pricing for goods and services traded between the two countries and overcome currency-related obstacles that have affected bilateral trade.
    • This shift away from the US dollar signals India’s de-dollarization efforts.
    • The decision also comes against the backdrop of ongoing official efforts to safeguard Indian trade from the impact of the Ukraine crisis.

    Broader implications

    • The sanction on the Russian economy and the ongoing war in Ukraine have made it increasingly difficult to make payments to Russia in US dollars.
    • Many countries are exploring alternatives to the US dollar as the dominant reserve currency for international trade.

     

    Try this MCQ

    Q. Which of the following is a key difference between Nostro and Vostro accounts?

    A) A Nostro account is held by a bank in a foreign country, while a Vostro account is held by a bank in the home country.

    B) A Vostro account is used for incoming transactions, while a Nostro account is used for outgoing transactions.

    C) A Nostro account is denominated in the local currency of the home country, while a Vostro account is denominated in a foreign currency.

    D) A Vostro account is used for trade financing, while a Nostro account is used for personal banking transactions.

     

    [wpdiscuz-feedback id=”pxonls7qde” question=”Please leave a feedback on this” opened=”1″]Post your answers here.[/wpdiscuz-feedback]

     

     

  • Bharat 6G project: India plans to roll out high-speed internet by 2030

    6g

    Central idea: Despite over 45,000 Indian villages lacking 4G connectivity and ongoing efforts to build out 5G networks, the Indian government has set its sights on 6G.

    Why in news?

    • On March 22, PM Modi unveiled the Bharat 6G Vision Document, aimed at gearing up policymakers and the industry for the next generation of telecommunications.

    What is 6G?

    • 6G is the next generation of wireless telecommunications technology, which is expected to offer significantly faster data speeds, higher bandwidth, and lower latency than 5G.
    • It is still in the development stage, and its commercial rollout is not expected for several years.
    • However, many countries, including India, are already working on developing 6G technology and setting standards for its implementation.

    Differences between 6G and 5G

    • While 6G will offer faster loading times, improved video quality, and faster downloads, like every new generation of technology, it is unclear how much better it will be.
    • With latency already at the speed of light on existing networks, the benefits of 6G will depend on how different groups plan to use the spectrum.
    • Satellite constellations will join telecom towers and base stations, integrating networks and extending them to rural areas.

    Motivations for pursuing 6G

    • Encourage local industry: The Indian government hopes to encourage local manufacturing of telecom gear and support Indian companies and engineers in international discussions around standardization.
    • Avoid delay unlike 5G: India aims to avoid the delay in previous generations of telecommunications technology, which started rolling out in India years after countries like South Korea and the United States.
    • Increased connectivity: Additionally, the lower frequency in 4G networks may not be able to keep up with the demand for traffic with increasing data usage, making 6G a necessity.

    Government Plans for 6G

    • The Indian government plans to financially support “research pathways” to advance connectivity goals and establish an “apex body”.
    • India’s 6G goals include-
    1. Guaranteeing every citizen a minimum bandwidth of 100Mbps
    2. Ensuring every gram panchayat has half TB (terabyte) per second of connectivity, and
    3. Providing over 50 million internet hotspots with thirteen per square kilometre.

    Roadmap for 6G in India

    • The government plans to implement 6G in two phases.
    1. Phase 1 will support explorative ideas, risky pathways, and proof-of-concept tests.
    2. Phase 2 will support ideas and concepts that show promise for global acceptance, leading to commercialisation.
    • It would appoint an apex council to oversee the project and deal with standardisation, identification of spectrum, finances for research and development, and more
    • The council will finance research and development of 6G technologies by Indian start-ups, companies, research bodies, and universities.
    • Key focus of the council will be on new technologies such as Terahertz communication, radio interfaces, tactile internet, and artificial intelligence.
    • Bharat 6G Mission aligns with the national vision of Atmanirbhar Bharat and aims to make India a leading supplier of advanced telecom technologies that are affordable and contribute to the global good.

    Approaches to 6G in Other Countries

    • South Korea plans significant investments in 6G technology development, with a focus on laying the ground for key original technologies and domestic production of core equipment and components.
    • Countries are also starting to work together, with Japan and Germany planning a workshop to work on everything from “fundamental technologies to demonstrations.”
    • Europe’s equivalent of the Indian 6G Vision Document emphasizes leadership in strategic areas and establishing secure and trusted access to key technologies.

  • UN allows Deep Sea Mining operations from July

    mining

    Central idea: The International Seabed Authority has announced that it will start accepting applications from companies for deep sea mining from July.

    Why in news?

    • This decision was made in the absence of a mining code that has not been put in place yet.

    What is Deep Sea Mining?

    • Deep-sea mining is the process of extracting minerals from the deep ocean floor.
    • The minerals that are extracted can include valuable metals such as copper, gold, nickel, and manganese, as well as rare earth metals that are used in high-tech devices such as smartphones, computers, and electric vehicles.
    • The minerals are found in the form of polymetallic nodules that are located on the ocean floor at depths of around 4 to 6 kilometers.
    • Deep-sea mining involves the use of specially designed equipment that can withstand the extreme pressure and temperature conditions found at these depths.

    About International Seabed Authority

    • The International Seabed Authority is a Jamaica-based organization established under the United Nations Convention on the Law of the Sea.
    • The authority holds jurisdiction over the ocean floors outside of the Exclusive Economic Zones of its 167 member states.

    Reasons behind undersea mining

    • The mining is aimed at extracting cobalt, copper, nickel, and manganese from the ocean’s floor.
    • The undersea mining will extract key battery materials from polymetallic nodules found at depths of 4 kilometers to 6 kilometers.
    • These nodules are potato-sized rocks containing cobalt, copper, nickel, and manganese.

    Key concern: Mining code missing

    • Despite 10 years of discussion, there is no mining code in place.
    • The governing council of ISA is uncertain about the process it should adopt for reviewing applications for mining contracts.

    Issues with deep-sea mining

    • Deep-sea mining is a controversial issue that has raised concerns among non-governmental organizations, experts, and some countries.
    • One major concern is the potential damage to the seabed and the essential function of deep-sea ecosystems in regulating the climate.
    • Mining activities can also have wider impacts on fish populations, marine mammals, and other ocean life.

    Tap to read more about

    India’s Deep Ocean Mission

  • IIT Mandi’s novel catalyst to make Hydrogen more viable fuel

    hydrogen

    Scientists at IIT Mandi have created an innovative carbon-based catalyst that can enhance the efficiency of water electrolysis to generate green hydrogen.

    Water electrolysis and its Challenges

    • Water electrolysis is the process of splitting water molecules into hydrogen and oxygen using electricity inside an electrolyser.
    • However, this process consumes a lot of electrical energy.
    • A well-known solution is to use a catalyst to induce the water molecules to split at a much lower energy.
    • The better catalysts are often based on the metals iridium and ruthenium, which are expensive, in great demand in other sectors, and not consistently stable as the reaction progresses.

    IIT’s breakthrough: Development of Laser Carbon

    • Researchers have developed a porous carbon material containing nitrogen that functions both as a catalyst and as the anode in electrolyser units.
    • This material, called “laser carbon,” was produced by exposing a sheet of a polymer called polyimide to a laser beam, which carbonised the exposed bits, leaving the remainder rich in nitrogen.

    How does laser carbon work?

    • The nitrogen atoms in laser carbon draw electron clouds towards themselves, rendering the nearby carbon atoms to bond with atoms or molecules containing electron pairs.
    • This makes the location of these atoms active sites for the oxygen evolution reaction (OER).
    • OER is a bottleneck in this ideal reaction process because it proceeds slowly, with many intermediate steps, lowering the total reaction efficiency.
    • Laser carbon offers to fix this problem by reducing the OER overpotential, which means the reaction kicks off sooner and proceeds with more vigor.

    Advantages of laser carbon

    Laser carbon has several advantages over other carbon-based catalysts.

    • It is “highly power efficient,” cheaper to produce, has a simpler synthesis technique, and “can be batch-manufactured with a laser.”
    • The manufacturing process is also environment-friendly, as no waste is generated, and there are no wet chemicals that would require disposal.
    • Additionally, it does not require a substrate as it is self-supported in the form of a film, acting as both electrode and electrocatalyst.

    Challenges

    • The catalytic activity of laser carbon may not be as high as that of some metals but is comparable.
    • Further improvements in the fabrication process and use of other polymers may address this challenge.

  • Novel compound to treat Kala-Azar Infection

    kala-azar

    Central idea: The Kolkata-based Indian Association for the Cultivation of Science (IACS) have established the potential of quinoline derivatives to treat drug-resistant leishmaniasis, which is also called kala-azar or black fever.

    What is Kala Azar?

    • Kala-Azar is a vector-borne (sandfly) neglected tropical disease caused by the protozoan parasites of the genus leishmania.
    • It afflicts the world’s poorest populations in over 90 countries throughout Asia, Africa, the Middle East, and Central and South America.
    • Current annual estimates of kala-azar are about 1,00,000.
    • More than 95% of cases reported to the WHO are from India and other tropical countries, most importantly co-infection with HIV, which leads to an immunocompromised state.

    How does Quinoline work over this?

    • The quinoline derivative is a potent inhibitor of an enzyme called topoisomerase 1 (LdTop1).
    • This enzyme is essential for the maintenance of DNA architecture in parasites and is distinct from the one found in humans.
    • Poisoning LdTop1 imparts significant cytotoxicity to both Leishmania parasites found in the gut of sandfly vectors (promastigotes) and those found in infected humans (amastigotes) of both the wild type and the antimony-resistant isolates.
    • This is done without inducing lethality to human and mice host cells.

    Significance of quinoline treatment

    • Overcoming drug resistance in clinical leishmaniasis is a severe challenge in rural India.
    • The current treatment regimens against kala-azar use formulations that are toxic and induce high levels of drug-resistance.

    What is the breakthrough?

    • The novel inhibitor targeting the leishmania parasites was identified by screening them against recombinant Leishmania topoisomerase 1 enzyme.
    • In all, 21 derivatives were prepared and evaluated for their antileishmanial activity, and one of them was found to be effective.

     

  • Bandipur completes 50 years as Project Tiger Reserve

    tiger

    Central idea: Bandipur completed 50 years as a Project Tiger Reserve on April 1, 2023.

    Bandipur Tiger Reserve

    • The reserve is located in the Indian state of Karnataka and is spread over an area of 912.04 sq. km.
    • It is recognized as one of the prime tiger habitats in the world and is an important component of the country’s first biosphere reserve – Nilgiri Biosphere Reserve.

    Tiger Population in Bandipur

    • When Project Tiger was launched in 1973, there were 12 tigers in Bandipur, according to Ramesh Kumar, director, of Bandipur Tiger Reserve.
    • Today, the number of tigers utilizing the park is 173 while the number of tigers within the reserve has been pegged at 126 as per the Status of Tigers Co-predators and Prey in India, 2018.

    History of conservation efforts in Bandipur

    • Much before the Wildlife Conservation Act, 1972, was passed, the erstwhile rulers of Mysuru had realized the importance of conserving flora and fauna.
    • The Mysore Game and Fish Preservation Act was passed in 1901, and several forest areas were preserved as Game Reserves, and Tiger Blocks were identified with shooting restrictions imposed.
    • Initially, an area spread over 35 sq miles was declared as a Game Sanctuary in Chamarajanagar State Forest of Mysore district in 1931 and was protected for 10 years.

    Bandipur’s inclusion in Project Tiger

    • When Project Tiger was launched in 1973, Bandipur was among the first nine reserves to be brought under the flagship program, and it included most areas that were already protected under the Venugopal Wildlife Park.
    • The park was upgraded to a national park and renamed Bandipur, and the adjacent reserve forests were included under it to extend its area to 874.20 sq km.

    Significance of the area

    • The landscape spanning Bandipur, Nagarahole, Mudumalai, and Wayanad complex is home not only to the highest number of tigers in the country – about 724 – but also to the largest Asian Elephant population.
    • The Bandipur Tiger Reserve is an important component of the country’s first biosphere reserve – Nilgiri Biosphere Reserve.

    Tap to read more about:

    [Sansad TV] Perspective – Project Tiger: Reclaiming Territories

     

  • Key highlights of the Foreign Trade Policy, 2023

    foreign trade policy

    Union Minister of Commerce and Industry has launched the Foreign Trade Policy 2023.

    Foreign Trade Policy, 2023

    • The policy is dynamic and open-ended to accommodate the emerging needs of the time.
    • It aims to promote India’s overall exports, which has already crossed US$ 750 Billion.
    • The key approach to the policy is based on these 4 pillars:
    1. Incentive to Remission,
    2. Export promotion through collaboration – Exporters, States, Districts, Indian Missions,
    3. Ease of doing business, reduction in transaction cost and e-initiatives and
    4. Emerging Areas – E-Commerce Developing Districts as Export Hubs and streamlining SCOMET (Special Chemicals, Organisms, Materials, Equipment, and Technologies) Policy

    Overview of the FTP, 2023

    • FTP to provide the policy continuity and a responsive framework
    • Approach of FTP: From Incentive to Remission
    • Introduces scheme for remission of duties, taxes and govt levies on export goods
    • Digitisation of applications pertaining to FTP
    • Automatic system-based approval of FTP applications
    • Pilot introduced for cutting processing of applications related to advance authorisation to 1 day
    • Norms for recognition as Star Trading Houses eased
    • Promotes trade in Indian Rupee
    • Introduces provisions for merchanting trade
    • Dairy sector to be exempted from maintaining average export obligation * Battery electric vehicles; vertical farming equipment & green hydrogen eligible for reduced obligation under Export Promotion Capital Goods (EPCG) scheme
    • Special advance authorization scheme extended for apparel & clothing sector
    • Extends all FTP benefits to e-commerce exports
    • Value limit for exports through courier service increased from Rs 5 lakh to Rs 10 lakh per consignment
    • Focus on engaging with states & districts through Districts as Export Hubs initiative
    • Aims at streamlining export of dual use items under SCOMET policy
    • Introduces amnesty scheme for one-time settlement of default in export obligation by advance authorisation and EPCG authorisation holders
    • FTP to be dynamic and responsive to the emerging trade scenario
    • Restructuring of Department of Commerce on the anvil to make it future-ready

     

    Key highlights

    (1) Process Re-Engineering and Automation

    • The policy emphasizes export promotion and development, moving away from an incentive regime to a regime which is facilitating, based on technology interface and principles of collaboration.
    • Reduction in fee structures and IT-based schemes will make it easier for MSMEs and others to access export benefits.
    • Duty exemption schemes for export production will now be implemented through Regional Offices in a rule-based IT system environment, eliminating the need for manual interface.

    (2) Towns of Export Excellence

    • Four new towns have been designated as Towns of Export Excellence (TEE) in addition to the existing 39 towns.
    • The TEEs will have priority access to export promotion funds under the Market Access Initiative (MAI) Scheme.
    • It will be able to avail Common Service Provider (CSP) benefits for export fulfilment under the EPCG Scheme.

    (3) Recognition of Exporters

    • Exporter firms recognized with ‘status’ based on export performance will now be partners in capacity-building initiatives on a best-endeavour basis.
    • 2-star and above status holders would be encouraged to provide trade-related training based on a model curriculum to interested individuals.

    (4) Promoting Export from the Districts

    • The FTP aims at building partnerships with State governments and taking forward the Districts as Export Hubs (DEH) initiative.
    • This would promote exports at the district level and accelerate the development of grassroots trade ecosystem.

    (5) Streamlining SCOMET Policy

    • India is placing more emphasis on the “export control” regime.
    • A robust export control system in India would provide access of dual-use High end goods and technologies to Indian exporters while facilitating exports of controlled items/technologies under SCOMET from India.

     

    (6) Facilitating E-Commerce Exports

    • Various estimates suggest e-commerce export potential in the range of $200 to $300 billion by 2030.
    • FTP 2023 outlines the intent and roadmap for establishing e-commerce hubs and related elements such as payment reconciliation, book-keeping, returns policy, and export entitlements.
    • As a starting point, the consignment wise cap on E-Commerce exports through courier has been raised from ₹5Lakh to ₹10 Lakh in the FTP 2023.

    (7) Facilitation under Export Promotion of Capital Goods (EPCG) Scheme

    The government has made several changes to the Foreign Trade Policy, including:

    • Adding PM MITRA scheme for textile and apparel parks to EPCG’s Common Service Provider Scheme
    • Exempting dairy sector from maintaining Average Export Obligation
    • Adding green technologies such as BEVs, vertical farming equipment, and rainwater harvesting to EPCG’s reduced Export Obligation requirement.

    (8) Facilitation under Advance authorization Scheme

    • DTA (Domestic Tariff Area) units can access the Advance Authorization Scheme for duty-free import of raw materials for manufacturing export items, and it can be used for domestic and export production.
    • The Special Advance Authorization Scheme has been extended to the Apparel and Clothing sector to facilitate prompt execution of export orders.
    • The Self-Ratification Scheme for fixation of Input-Output Norms has been extended to 2-star and above status holders.

    (9) Merchanting trade

    • The FTP 2023 has introduced provisions for merchanting trade, which allows the shipment of goods from one foreign country to another foreign country without touching Indian ports, involving an Indian intermediary.
    • This will be subject to compliance with RBI guidelines, and it won’t be applicable for goods/items classified in the CITES and SCOMET list.
    • This is expected to allow Indian entrepreneurs to convert certain places into major merchanting hubs.

    (10) Amnesty Scheme

    • The government is introducing a special one-time Amnesty Scheme under the FTP 2023 to address default on Export Obligations and provide relief to exporters who have been unable to meet their obligations under EPCG and Advance Authorizations.
    • All pending cases of default in meeting Export Obligation (EO) of authorizations can be regularized on payment of all customs duties that were exempted in proportion to unfulfilled Export Obligation.
    • The interest payable is capped at 100% of these exempted duties under this scheme, and no interest is payable on the portion of Additional Customs Duty and Special Additional Customs Duty.

     

  • UK to join Asia-Pacific Trade Treaty

    trade

    UK has agreed to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a trade pact based around the Pacific Rim, as it seeks to build ties around the world after leaving the European Union.

    Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)

    • CPTPP is a free trade agreement (FTA) that was agreed in 2018 between 11 countries – Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.
    • Britain will become the 12th member, and the first to join since the partnership since its inception.
    • The agreement was originally proposed as the Trans-Pacific Partnership (TPP) in 2005, with the goal of creating a free trade area that would cover 12 countries, including the US.
    • However, the US withdrew from the agreement in 2017, prompting the remaining 11 countries to renegotiate the deal and create the CPTPP.

    Economic prospects

    • CPTPP countries approximately has a combined GDP of 11 trillion pounds ($13.6 trillion) once Britain joins, or 15% of global GDP with UK membership.
    • It does not have a single market for goods or services, and so regulatory harmonisation is not required, unlike the European Union, whose trading orbit Britain left at the end of 2020.

    Key trade objectives of CPTPP

    • The CPTPP is designed to reduce tariffs and promote economic integration among its members.
    • It aims to eliminate tariffs on more than 95% of goods traded between member countries, and to provide greater market access for services and investment.
    • The agreement also includes provisions on intellectual property, labor, and environmental standards.

    How much does Britain trade with CPTPP?

    • British exports to CPTPP countries were worth 60.5 billion pounds in the twelve months to end-Sept. 2022.
    • Membership of the grouping will add another 1.8 billion pounds each year in the long run, and possibly more if other countries join.

    Key benefits to be reaped by UK

    • Exporters could benefit from CPTPP membership even when trading with countries where there is a bilateral FTA.
    • To benefit from preferential tariffs, exporters must demonstrate a product as a sufficient proportion of “locally” sourced parts.
    • Rules of origin under rolled-over post-Brexit free trade agreements with Japan, Mexico and Canada, for instance, allow exporters to count EU inputs as “local”.
    • However, under CPTPP, inputs from CPTPP members can usually be considered local, giving exporters another option if it is beneficial.

    Geopolitical considerations: China Factor

    • While the long-term benefit for Britain’s economy is set to be modest, Britain has other reasons for joining the bloc.
    • UK will get a veto on whether China joins the treaty. Beijing had applied to become a member of the bloc in September 2021.