Wednesday, December 24, 2014

Starred Articles

Russian ruble declines 80 percent to US dollar, brings back fear of 1998 crisis; authorities blame it on western sanctions
World > Ruble Decline > Dec 18
A major decline in the value of the Russian ruble has sparked off an economic crisis in Russia and affected markets world over. The ruble went past 80 to the dollar, the first time since 1998, bringing back fears of the 1998 Russian financial crisis. A decline in confidence over the Russian economy caused investors to sell off their Russian assets, further causing the ruble to drop in value. Russian authorities attributed the fall of the ruble to two sources - Crude oil, a major export of Russia, declined in price by nearly 50% between June 2014 and 16 December 2014. The drop in oil prices was caused by a drop in demand across the world as well as increased production in the United States. This fall in oil prices hit Russia hard as roughly half of the Russian government’s revenue comes from the sale of oil and gas. Secondly, a host of economic sanctions imposed on Russia following Russia’s annexation of Crimea and its alleged military intervention in Ukraine. Russian companies have been prevented from rolling over debt, forcing companies to exchange their rubles for U.S. dollars or other foreign currencies on the open market to meet their interest payment obligations on their existing debt.
Steps taken:
The Central Bank of Russia increased its interest rate from 10.5% to a whopping 17% and pumped $ 2 billion to strengthen the declining ruble. The government also instructed five of the country's biggest state-controlled exporters to reduce their foreign currency assets to October levels and to not raise them again until March. The central bank lent $530 million to bail out mid-sized Trust Bank, which became the first bank to accept a government bailout during the crisis. Russian President Vladimir Putin and Prime Minister Dmitry Medvedev blamed the western nations of engineering the crisis. News of the ruble collapse affected Indian Pharmaceutical companies and caused a sharp plunge in the Sensex. Stock markets in the US and China plummeted 2-3% due to the Russian crisis. The devaluation of the ruble affected the currencies of many post-Soviet states as trade with Russia represents over 5% of their GDP.

Cabinet approves GST Constitutional Amendment Bill
Politics and Government > Goods & Services Tax (GST) > Dec 18
The Union Cabinet on Wednesday approved the Constitutional Amendment Bill on Goods & Services Tax (GST), taking a step forward towards an indirect tax reform expected to raise revenues and boost growth. The government aims to implement GST by April 1, 2016. GST is one of the primary objectives of the Narendra Modi government's economic agenda. The Bill had missed several rollout dates due to lack of consensus among the states and the Centre. The breakthrough came after finance minister Arun Jaitley assured the states of a fair deal. Initially, petroleum will be kept out of GST but will be included in the new tax set up once states come on board. Alcohol too will be kept out of GST. Additionally, the Centre has devised a levy of 1% above the GST rate on select items and is assuring the states full compensation for revenue loss for three years, followed by 75% in fourth year and 50% in the fifth. However, the Centre hopes that there will be less need to pay compensations due to fewer exemptions and a gain from service tax.

Indian men’s and women’s teams win Kabaddi World Cup
Sports > Kabaddi > Dec 20
The Indian men’s team continued their winning streak by clinching the fifth Kabaddi World Cup title defeating Pakistan 45-42 for the fourth time. The Indian women’s team also won their fourth consecutive title beating New Zealand 36-27 for the second time in a row. Both teams in the men and women sections had clashed during the finals of Fourth Kabaddi World Cup at Ludhiana last year and in both the matches, India had emerged victorious.

Bharat Ratna to be conferred on Atal Bihari Vajpayee and Madan Mohan Malaviya
Awards > Bharat Ratna > Dec 24
On the eve of Bharatiya Janata Party (BJP) stalwart Mr. Atal Bihari Vajpayee’s birthday on December 25, the centre announced the decision to honour the former Prime Minister and freedom fighter-educationist Madan Mohan Malaviya with the prestigious Bharat Ratna, India’s highest civilian award.
Reportedly, the decision was taken at a meeting held by PM Modi and attended by top BJP leaders. The BJP has been demanding the award for Vajpayee since five years. The award comprises a certificate signed by the President and a peepal-leaf shaped medallion. Bharat Ratna has been conferred on 43 individuals from the day it was instituted.

Others

Chaos in Rajya Sabha on the conversions' issue, opposition asks for PM’s statement
Politics & Government > India > Dec 18
Rajya Sabha witnessed a chaos over the conversions issue demanding a statement from Prime Minister Narendra Modi. The house was adjourned immediately by the Chairman of the house. Although the government said that it was ready for a discussion on the issue, the opposition wanted a statement from the Prime Minister himself.
The protests from the opposition started after the mass conversions of nearly 60 Muslim families took place in Agra in Uttar Pradesh last week.

Rajinder Khanna and Prakash Mishra appointed as RAW and CRPF chiefs respectively
India > RAW & CRPF > Dec 20
The NDA government on Tuesday appointed Rajinder Khanna as the new chief of India's secret agency, Research & Analysis Wing (RAW) and Prakash Mishra as the Director General of the Central Reserve Police Force (CRPF). The appointments were made by a cabinet committee headed by PM Narendra Modi. The appointments committee cleared Khanna, a 1978 batch RAS cadre, for the post of RAW chief for a period of two years from 31 December and Mishra, a 1977-batch IPS officer from Odisha cadre, was made chief of CRPF.

Atletico de Kolkata wins first edition of Indian Super League
Sports > Football > Dec 20
Atletico de Kolkata beat Kerala Blasters 1-0 to win the inaugural edition of the Indian Super League (ISL) football tournament. Although Kerala had more chances on goal than Kolkata, both teams remained goalless for more than 90 minutes. A header by Kolkata’s Mohammad Rafique in the 94rd minute helped Kolkata lift the cup.

Ukraine parliament votes to pursue closer ties with NATO drawing criticism from Russia
World > Ukraine > Dec 23
A pro-western Ukraine parliament voted overwhelmingly, 303 to 8, in favour of revoking a policy of “nonalignment” and to instead pursue closer military and strategic ties with the West. “Nonalignment” has been defined as “nonparticipation of Ukraine in the military-political alliances” and was widely pushed by former president Viktor F. Yanukovych, who was toppled in February and fled to Russia after months of protests in Kiev. The revised law, widely pushed by current President Petro O. Poroshenko, requires Ukraine to deepen cooperation with NATO in order to achieve the criteria required to be a member of the NATO. However, owing to Russia’s strong opposition, it is unlikely that Ukraine will join NATO soon. In November, Russia had asked for a 100 percent guarantee on Ukraine not joining NATO. Russia has criticized the vote and said that such laws will not help in settling the domestic crisis and instead aggravate the confrontation.

Kendriya Vidyalayas to remain closed on Christmas, online essay competition voluntary: CBSE
Politics and Government > Good Governance Day Controversy > Dec 23
The CBSE has clarified that it has not issued any directive for schools to remain open on December 25th Christmas Day. A circular issued by the CBSE further stated that all Kendriya Vidyalayas will adhere to the holiday schedule and students can participate in the online essay competition only if they desire. They can do so from the comfort of their homes or any other place of their choice. The clarification by the CBSE came in wake of the controversy over media reports that the government had issued instructions asking schools to remain open on December 25, Christmas Day, to observe 'Good Governance Day' to mark former prime minister Atal Bihari Vajpayee's birthday.

Bodo militants kill 53 tribals in Assam
India > Assam Attacks > Dec 24
65 tribals were killed by Bodo militants in Assam's Kokrajhar and Sonitpur districts on Tuesday. The areas in the jurisdiction of Dhekiajuli, Thelamara, Rangapara and Biswanath Chariali police stations have been clamped with curfew. The tribals retaliated with violent protests.In Dhekajuli town, the protestors, armed with bows and arrows, tried to storm the police station. Police resorted to lathi-charge and opened fire when the situation worsened. Three persons were killed and several others injured in police action. Angry protestors also set ablaze twenty houses allegedly belonging to the people of the Bodo community in Sonitpur district.
The Prime Minister condemned the militant attack and called it an act of cowardice. A relief of Rs 200, 000 has been given to the family of the deceased and Rs 50,000 to the injured. The death toll is likely to go up as the bodies are being recovered. The officials suspect the involvement of the militant group National Democratic Front of Bodoland (Songbijit).
Shinzo Abe confirmed for second term as Japan’s prime minister
World > Japan > Dec 24
Japan's parliament has confirmed Shinzo Abe for another term as prime minister after his election victory. The lower house voted overwhelmingly for Abe with 328 votes against 73 for acting opposition leader Katsuya Okada. That was followed by an upper house poll which officially confirmed Abe as premier. His new cabinet remained largely unchanged except for General Nakatani who replaced Akinori Eto as defence minister after Eto declined reappointment in the midst of a political funding scandal. China’s official news agency warned that Abe and his defence minister need to tread carefully as the two of them advocate a stronger role for Japan’s self-defence forces and the international community should keep an eye on them. Relations between Japan and China have been cold with China blaming Abe's provocative nationalism, including a visit to a controversial war shrine, and trying to conceal the truth on Japan's wartime record of enslaving women for sex.

Cabinet approves 100% FDI for medical devices sector
Politics and Government > FDI in Medical Devices Sector > Dec 24
The Union Cabinet has approved the liberalisation of the medical devices sector with 100 percent FDI for medical devices business. FDI will be permitted through automatic route in the case of greenfield investment or new venture and the Foreign Investment Promotion Board (FIPB) approval is required in the case of brownfield investment or in existing companies. As per estimates, India imports about 70 percent of its requirement of medical devices. The industry size in the country is about USD 7 billion.
Medical devices include wide range of products such as sutures, implants and surgical instruments.



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