(Current Affairs For SSC Exams) India & The World | March, 2014

March 2014

India & The World

INDIA & JAPAN

India and Japan inked several pacts during the official visit of the Prime Minister of Japan to India from 25 to 27 January 2014. Shinzo Abe, the Prime Minister of Japan was the Chief Guest of India on the occasion of the Republic Day parade on 26 January 2014. The sides signed memorandum for strengthening cooperation in the field of tourism, enhancing energy efficiency in telecom towers and power generation in the country. During this tour of Shino Abe, the two countries inked several pacts and they includes

Memorandum in tourism

India and Japan signed the Memorandum for strengthening cooperation in tourism on 22 January 2014. The Memorandum will facilitate travel and tourist visits and strengthen the tourism partnership between the two  countries. The main objectives of the Memorandum are:

  • To expand bilateral cooperation in the tourism sector

  • To exchange information and data related to tourism

  • To encourage cooperation between Tour Operators and  tourism stakeholders including Hotel owners

  • To establish exchange programmes for cooperation in  Human Resource Development

  • To exchange visits of Tour Operators/Media/ Opinion Makers for promotion of two way tourism

  • To exchange experience in the areas of promotion, marketing, destination development and management During 2013 India received 2.20 lakh tourists from Japan and the highest numbers of visas on arrival were issued to the tourists from Japan. Buddhist heritage sites are a great attraction for Japanese tourists to India.

INDIA & PAKISTAN

India and Pakistan reached an agreement on providing Non Discriminatory Market Access (NDMA) in place of Most Favoured Nation status. The agreement on NDMA will help normalize bilateral trade between the two nations. This was stated in a Joint Statement released by the Commerce Ministers of two nations at the end of 5th SAARC Business Leaders Conclave held in New Delhi on 18 January 2014. The Pakistan Trade Minister Khurram Dastgir Khan on this occasion extended the invitation to Union Commerce and Industry Ministry Anand Sharma to visit Pakistan in February 2014. Highlights of Joint statement

  • Both the countries agreed to provide Non Discriminatory Market Access (NDMA) on reciprocal basis to establish normal trading relations. This includes issuing bank licences to allow banks to function in each other’s country.

  • Under agreed NDMA, India needs to open up to 614 items to Pakistan. Pakistan, on the other hand, needs to open up to India two lists comprising 936 and 1209 items

  • To intensify and accelerate the process of trade normalization, liberalization and facilitation and to implement the agreed measures before the end of February 2014

  • To make operational the Wagah – Attari Land Customs Station on all seven days of each week to provide the movement of containers, all tradable items by land route

  • To liberalize business visa regime for the business community of both the nations along the Wagah – Attari border

  • To convene the meetings of the technical working groups on Customs, Railways, Banking, Standards Organizations and Energy

  • To hold India Show in collaboration with FICCI in Lahore with the objective of enhancing bilateral trade in February 2014.

  • Along with India Show, a joint Vintage Car Rally between Amritsar and Lahore will be held to promote greater people to people contact The Third meeting of Joint Business Forum of Chief Executive Officers is scheduled in Pakistan for mid-February of 2014. The Joint Business Forum will help enhance trade cooperation in diverse sector such as textiles, tourism light  engineering, pharmaceuticals andothers.

INDIA & U.S.

India on 8 January 2014 asked the US to discontinue the commercial activities being undertaken from the US embassy premises in Delhi by 16 January 2014. The government of India has asked the embassy to stop its commercial activities being undertaken under the aegis of the American Community Support Association (ACSA), which includes bar, video club, restaurant, swimming pool, bowling alley, sports field, gym and beauty parlour. As per the sources, the Indian Government has asked US to provide the tax returns filed by it with the Indian authorities to start the commercial activities and afforded by ACSA. The services were offered to non-diplomatic persons, which also includes the private American citizens and their families. As per the authorities of India, the actions of ACSA are a violation of Article 41(3) of the Vienna Convention on Diplomatic Relations 1961, as it has given commercial facilities to non diplomats. This tough action of India came ahead of 13 January 2014, the date that has been set as the deadline for the indictment in New York of Khobragade, the Deputy Consul General in New York America on visa fraud charge

INDIA & BRITAIN

India launched a Gandhi Portal named Search for Gandhi in London on 31 January 2014. With this India aims to popularize Mahatma Gandhi among children of British Indians settled in UK. High commissioner of India to UK Ranjan Mathai and Sam Pitroda launched this portal. The portal is meant for children aged 6 to 15 and will use audios, videos, creatively integrated facts, games and quizzes. Youth 4 Gandhi Foundation (Y4G) plans to propagate Gandhi and his values in children which can be fun and includes a hint of seriousness attached to it. The portal will use both English and Hindi to communicate the messages. The website would contain five main sections. The Know Gandhi section will go through Gandhi’s journey as a writer, philosopher and leader. Meet Gandhi will take children on an online tour of Gandhi Smriti where he spent the last days of his life and his belongings and glimpses of his life on display. The website will take the children through a virtual tour of Raj Ghat where Gandhi was cremated. Gandhi Gaming will bring out the fun quotient carrying games and quizzes that will educate youngsters about Gandhi through entertainment. The portal will also allow one to watch Gandhi’s iconic videos and hear the audios of his most famous speeches.

Department for Business Innovation and Skills (BIS) and Ministry of Labour and Employment (MoLE) on 16 January 2014 signed Memorandum of Understanding (MoU) to enhance the collaboration within the framework of UK India Education and Research Initiative (UKIERI) in New Delhi. The signing was done after a bilateral meeting between the delegations led by K Suresh, the Minister of State of Labour and Employment (MoLE) of Government of India and Matthew Hancock, the Minister of State for Skills and Enterprise of United Kingdom.

The MoU focuses to collaborate and build partnership in the area of Skill Development and Employment Services. Following activities will be supported as per the guiding document for overall collaboration

  • Institutional capacity building of UK and Indian official and institutes handling skill development and employment services

  • Sharing of technical expertise, building linkages and identification of gaps in the areas of skill development and employment services, improvement in curriculum, benchmarking of assessment, certification and training
    methods.

  • Supporting development of employment services in India on the lines of National Careers Service, UK.

  • Other beneficial projects, in the area of skill development and employment services, mutually agreed.

UKIERI as its first step will facilitate the partnership of the stakeholders of India with the existing Career Services in the UK. It will also share the best practices of UK to help development of Indian model with the Ministry of Labour and Employment and other stakeholders. The initiative of both the countries will be funded jointly by MoLE and UKIERI and the expenses of India will be borne by MoLE and UK cost by UKIERI.

The two countries will also partner on Mentor Councils (MCs) in identified priority sectors, which will be the response to the demand of skills in the sector. It includes restructuring of courses, curriculum development, identification and development of good teaching and learning aids, training of trainers with quality, devising assessment mechanisms, improving on the job training and others. The support of UKIERI will be provided by UK
experts for Mentor Councils for up to 10 sectors through institutional partnership between the MCs set up by MoLE and the National Skill Academies in the UK. The funding of this programme will also be in the same pattern of jointly funding in respective countries. Britain on 15 January 2014 decided to change its tough immigration rules to recruit doctors from India. The plan has been made to fulfill the crisis of doctors in the emergency departments in the hospitals of the country. As per the latest figures of the country one in five Accident and Emergency (A&E) departments has a shortage of senior doctors. The national shortfall of more than 300 consultants in Britain was reported by a weekly Asian Lite. As per the figures, to fill the posts in the A&E departments trusts spend about 1500 pounds (150000 rupees) on temporary doctors. The Home Office earlier agreed to relax the rules on migration of the medical workers. The report also says that the officials of Senior National Health Services drawn up the plan to recruit 50 doctors from India in the first phase. Earl Howe, the Health Minister of Britain said that the British Medical students prefer not to pursue a pressurised carrier in Accident and Emergency.

They preferably opt for specialities in general medicine and pediatrics. The recruitment drive overseas was made after the ministers warned that NHS will buckle under the pressure without decisive action. British Prime Minister David Cameron ordered an enquiry into the role of former British PM Margaret Thatcher in Operation Bluestar on 14 January 2014. The enquiry will be conducted by the Britain’s cabinet secretary Sir Jeremy Heywood. The enquiry will look into newly-released documents that suggested Margaret Thatcher government facilitated the Indian government in 1984 to plan Operation Bluestar against separatist Sikh militants hiding inside the Golden Temple. Released declassified documents also indicated that Britain’s Special Air Service (SAS) officials were dispatched to help India on the planning on the raid of the Golden Temple to flush out militants. The documents were released by the National Archives in London under the 30-year declassification rule that provides for the release of cabinet papers of a government publicly thirty years after they were created.

The Network of Sikh Organisations, headed by Lord Indarjit Singh, expressed shock over  the revelation and offered help to the Foreign and Commonwealth Office to aid the investigation.

INDIA & SRI LANKA

India on 7 January 2014 launched the third phase of its housing project in Sri Lanka. The project has been expanded its category of beneficiaries and has included the Indian origin Tamils who are settled in the central part of Sri Lanka as plantation laborers. In the third phase of the project, 16000 houses will be built of which a new category of beneficiaries would be the Tamil plantation workers, who were brought in Sri Lanka by the British. At present these people live in miserable conditions in shanty-like line houses and mainly live in Uva and Central provinces. In second phase of the project, India constructed 10000 houses in the Northern and  Eastern parts of Sri Lanka. The project was executed for the internallydisplaced people affected by the civil war.

About Indian Housing Project of Sri Lanka The Indian Housing Project is a housing reconstruction project funded by the Government of India and implemented through a Memorandum of Understanding (MoU) with the Government of Sri Lanka (GOSL). Four Implementing Agencies (IAs) have been selected for this project, which is being executed in the Northern and Eastern Provinces of Sri Lanka. UN-Habitat is one of the IAs together with the International Federation for the Red Cross and Red Crescent Societies (IFRC) in partnership with Sri Lanka Red Cross, the National Housing Development Authority (NHDA) of the Government of Sri Lanka and Habitat for Humanity. The project will be implemented in 36 month, which has to be done from mid-2012 until mid-2015.

Under the Indian Housing project of Sri Lanka 50000 houses will be constructed and this is the single largest full grant assistance programme of Indian Government anywhere in the world. Under the beneficiary driven model 2 lakh 55 thousand rupees are transferred to selected beneficiaries for repairing of the houses and 5.50 lakh rupees for fully reconstruction of the houses. The construction work is done by the internationally chosen agencies, which needs to work under the supervision of the beneficiary themselves. The beneficiaries are selected on basis of clearly laid down criteria in consultation with the Government of Sri Lanka. Funds will be released directly by the High Commission of India into bank accounts of beneficiaries based on certification of progress of work. The Prime Minister of India Manmohan Singh announced India´s commitment to build 50000 housing units during the State visit of the President of Sri Lanka Mahinda Rajapaksa, to India in June 2010. This commitment also formed part of the Joint Declaration issued in New Delhi during the visit. The Housing Project, with a commitment of over 270 million US dollars in grants, is the flagship project of India´s developmental assistance to Sri Lanka.

March 2014

INDIA & CANADA

India and Canada on 13 January 2014 signed a Letter of Intent (LOI) for co-operation in Iron and Steel Sector. The letters were signed by Beni Prasad Verma, the Union Minister of Steel and Minister of Natural Resources, Government of Canada, Joe Oliver. The Canadian Minister is heading a high-level delegation from Canada to India. As per the signed Letter of Intent (LOI), the two countries has planned to develop and expand the mutual co-operation through information exchanges in areas of mutual interest, which includes iron-ore, cooking coal and other steel making raw materials. The two sides has also planned to encourage bilateral investment opportunities in iron and steel related business. For taping the new markets, the efforts would be made by both the countries ensuring raw material security and forge alliances with global entities. The two sides also discussed on many issues with an aim to expand and strengthen the bilateral relations of the two countries. The sides also identified the areas of cooperation and assistance, where India could be benefitted from Canada. Both the sides also exchanges their views related to the prospects and growth of the iron and steel industry with the investment opportunities in raw materials, that includes pelletization plants and other associated industries in both the countries.

INDIA & SAUDI ARABIA

India and Saudi Arabia on 2 January 2014 signed an agreement to protect the interests and rights of Indian domestic sector workers in the Gulf Kingdom. The pact was signed by Overseas Indian Affairs Minister Vayalar Ravi and the visiting Adel bin Mohammed Fakeih, the Labour Minister of Saudi Arabia in New Delhi. The agreement signing was necessitated in the view of Indians, who are facing work related problems in Saudi Arabia. The two countries have agreed on the need for a comprehensive way to deal with such problems. The two sides have decided to set up a joint committee to meet periodically to overcome the difficulties in implementing the
agreement. The pact has been signed with an objective to ensure authenticity and implementation of employment contract and take an action against recruitment agencies that violates the laws. At present around 28 lakh
peoples are living in Saudi Arabia. Indians form the largest expatriate community in the country. Of 500000 domestic workers in Saudi Arabia, most people are working as maids, helpers, drivers and cleaners of
which around 10 percent are women. The features of the agreement as per the official statements are:

  • It protects the rights of both the employers and domestic workers

  • It regulates the contractual relation between them

  • It ensures authenticity and implementation of the employment contract, takes measures against recruitment agencies that will violate laws and establishes a mechanism to provide 24 hours assistance to the domestic sector workers The agreement was conseptualised in April 2013 during the visit of Vayalar Ravi to Saudi Arabia.

INDIA & UAE

India and UAE on 18 January 2014 agreed to promote cooperation in renewable energy, especially in areas of solar energy and wind power. A Memorandum of Understanding (MoU) was signed to this effect in Abu Dhabi by Farooq Abdulla, the Minister of New and Renewable Energy of India and Sultan Ahmed Al Jaber, the Minister of State of UAE. The signed MoU allows the two countries to form a Joint Working Group for better coordination through joint research on subjects of mutual interest like

• Exchange and training of scientific and technical personnel

• Exchange of available scientific and technologies information and data

• Organization of workshops, seminars and working groups,

• Transfer of know-how, technology and equipment on non-commercial basis Earlier, India has launched in National Solar Mission (launched in 2010) under the National Action Plan on Climate Change. India has been
making efforts in promoting energy in remote and un-electrified areas of the country. Indian Minister, Farooq Abdulla also congratulated UAE for the hospitality extended by them during the 4th Assembly session of
IRENA. International Renewable Energy Agency (IRENA) The International Renewable Energy Agency (IRENA) is mandated as the global hub for renewable energy cooperation and information exchange by 124 Members (123 States and the European Union). Over 40 additional countries are in the accession process and actively engaged. Formally established in 2011, IRENA is the first global intergovernmental organisation to be
headquartered in the Middle East. IRENA supports countries in their transition to a sustainable energy future, and serves as the principal platform for international cooperation, a centre of excellence, and a repository of policy,  technology, resource and financial knowledge on renewable energy. IRENA promotes the widespread adoption and sustainable use of all forms of renewable energy, including bioenergy, geothermal, hydropower,
ocean, solar and wind energy in the pursuit of sustainable development, energy access, energy security and low-carbon economic growth and prosperity.

INDIA & NETHERLANDS

India and the Netherlands on 30 January 2014 signed Memorandum of Understanding (MOU) in field of Sports. MoU provides exchange of knowledge and experience in the fields of sports management, competition infrastructure set-up, coaching, training systems and training of referees for various sporting disciplines. It also decides top-sport development through youth academies. The MoU was signed by Jitendra Singh, Union Sports Minister and Edith I Schippers Health, Welfare and Sport Minister of the Netherlands in New Delhi. At present, Edith I Schippers of Netherlands is heading a Netherlands delegation on its visit to India. The
MoU also provides for cooperation and exchange programmes in the field of innovative sports infrastructure development and management including financial development, spatial area development, planning of sports
infrastructure and facilities, designing of sports infrastructure and facilities, exploitation of resources, management training and safety & security.

 It also provides facility offeasibility study or detailed project repot on the area development and resource exploitation possibilities around one major stadium in Delhi. It also mentions the feasibility study on the development and management of turnkey indoor sporting units to increase broad access to sporting facilities nationwide and exploring the possibility of opening a pilot unit of the same has been included for immediate execution. The MoU signing was preceded by delegationlevel talks between the two countries in which the two sides discussed the steps to enhance co-operation in the field of sports.

INDIA & MALAYSIA

Malaysia urged India to open a branch of Indian Institutes of Technology in Kuala Lumpur on 8 January 2014. Datuk Seri G Palanivel, Federal Minister for Natural Resources and Environment of the Republic of Malaysia made this announcement at ongoing 12th Pravasi Bhartiya Diwas in the capital. Palanivel is the chief guest of Pravasi Bhartiya Diwas and is also the President of Malaysian Indian Congress. Biodiversity is another field in which Malaysia wants to work with India. Malaysia has nearly two million population of Indian origin. Malaysian Government is also finalizing a draft bill for natural resources and benefit sharing.

IITs are autonomous institutions and are governed by the Institutes of Technology act, 1961. Many Malaysian students come to India for better education service. If IITs open its branch in Malaysia then they can get quality education at much lower cost. Overseas Indian Affairs Minister Vayalar Ravi recalled that Pravasi Bhartiya Diwas is held every year on 9 January as on the same day, Mahatma Gandhi returned from South Africa.

INDIAN & ZIMBABWE

The Reserve Bank of Zimbabwe (RBZ) announced Indian rupee as a legal tender on 29 January 2014. RBZ was adding Indian Rupee and three other Asian currencies to the basket of currencies to be circulated in the country. These include China, Japan and Australia. The public can now open accounts in Chinese Yuans, Australian Dollars, Indian Rupees and Japanese Yens. Till now, Zimbabwe accepted the US dollar and the South African rand as the main legal tender, which helped the country to stabilize the economy after world-record inflation threw it into a tailspin. In addition to the Botswana Pula, British Sterling Pound, Euro, South African Rand and United States Dollar, the central bank also added the Australian Dollar (AUD), Chinese Yuan (CYN), Indian Rupee (INR) and Japanese Yen. The addition of four Asian currencies to the international currencies stands to nine which are circulating in the country. Zimbabwe abandoned the use of its own currency in 2009 after world record inflation levels precipitated an economic collapse under the Zanu PF government. It was a coalition government in 2009 that introduced the multi-currency system that brought stability in Zimbabwe.

INDIA & FIJI

Government of India and the government of Fiji on 30 January 2014 signed a Double Taxation Avoidance Agreement (DTAA) for avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income. On behalf of India the agreement was signed by P. Chidambaram, Union Minister of Finance and on behalf of Fiji it was signed by Aiyaz Sayed-Khaiyum, Attorney General and Minister of Justice, Anti-Corruption, Public Enterprises, Communications, Civil Aviation, Tourism, Industry and Trade.

 The negotiation on the DTAA was reached in 2011 and this agreement will provide tax stability to the residents of India and Fiji. It will also facilitate in mutual economic cooperation as well as stimulate the flow of investment, technology and services between the two countries. It also incorporates provisions for an effective exchange of information and assistance in collection of taxes between tax authorities of the two countries including exchange of banking information. The maximum rate of tax that should be charged in the country of source will not exceed the prescribed limit for such dividends, royalties, interest and fees for technical services. The capital gains that are earned by the sale of shares will be taxable in the country of source. The anti-abuse provisions have been incorporated in the agreement to ensure that the benefits of Agreement are availed of only by the residents of the two countries and to prevent any abuse of treaty.

The agreement wi l l also help the two countries in

  • As per the DTAA the business profit will be taxable in the source state if the activities of an enterprise constitute a permanent establishment in the source country

  • Profits derived by an enterprise from the operation of aircraft in international traffic shall be taxable in the country of place of effective management of the enterprise

  • Dividends, interest, royalty income and fees for technical or professional services will be taxed both in the country of residence and in the country of source

About Double Taxation Avoidance Agreement (DTAA)

Double Taxation Avoidance Agreements (DTAA) means as an essential bilateral agreements that has been reached between the countries like this case the agreement on DTAA between India and Fiji. This is basically signed with an objective to avoid taxation of income in both the countries and to promote economic trade and investment between the two countries. The Double Tax Avoidance Agreements (DTAA) is essentially bilateral agreements entered into between two countries, in our case, between India and another foreign state. The basic objective is to avoid, taxation of income in both the countries (i.e. Double taxation of same income) and
to promote and foster economic trade and investment between the two countries.

Important advantages of DTAA are

 • Lower Withholding Taxes (Tax Deduction at Source)

• Complete Exemption of Income from Taxes

• Underlying Tax Credits

• Tax Sparing Credits

The provisions mentioned under DTAA provide the facility of overriding the general provisions mentioned under the taxes of a particular country. In case of India Section 90(2) has been inserted in the Indian Income Tax Act helps the countries under DTAA to override the domestic tax norms. Insertion of this code in the Act provides the assessee a chance to choose among the provisions of Income Tax Act or of DTAA, whichever seems as more beneficial.

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