GS Paper I- History and Geography of the World and Society.

India To Become World’s Fifth Largest Economy In 2018, Says CEBR.

Background-

  • India looks set to leapfrog Britain and France next year (2018) to become the world’s fifth-largest economy in dollar terms, a report showed on 26th December, 2017.
  • The Centre for Economics and Business Research (Cebr) consultancy’s 2018 World Economic League Table painted an upbeat view of the global economy, boosted by cheap energy and technology prices.
  • India’s ascent is part of a trend that will see Asian economies increasingly dominate the top 10 largest economies over the next 15 years.
  • According to Douglas McWilliams, Cebr deputy chairman, despite temporary setbacks, India’s economy has still caught up with that of France and the UK and in 2018 will have overtaken them both to become the world’s fifth largest economy in dollar terms.

Highlights Of The Development–

  • McWilliams said India’s growth had been slowed by restrictions on high-value banknotes and a new sales tax, a view shared by economists polled by Reuters.
  • China is likely to overtake the United States as the world’s No.1 economy in 2032, Cebr said.
  • Because the impact of President Trump on trade has been less severe than expected, the USA will retain its global crown a year longer than it was anticipated in the last report, the report said.
  • While Britain looks set to lag behind France over the next couple of years, Cebr predicted that Brexit’s effects on Britain’s economy will be less than feared, allowing it to overtake France again in 2020.
  • Russia was vulnerable to low oil prices and too reliant on the energy sector and looked likely to fall to 17th place among the world’s largest economies by 2032, from 11th now.
  • A Reuters poll of economists in late October (2017) suggested global economic growth in 2018 looks likely to quicken slightly to 3.6 percent from 3.5 percent this year (2017) – with risks to that forecast lying on the upside.

Sources- Business-Standard.

GS Paper II- International Relations.

UP Govt Signs MoU With South Korea.

Background

  • The Uttar Pradesh government on 23rd December, 2017 signed a memorandum of understanding with South Korea to enhance cooperation in the field of tourism, skill development, culture and farming.
  • A delegation from Gimhae city of South Korea met chief minister Yogi Adityanath in Lucknow and discussed ways to improve cooperation between the two countries.
  • On the occasion, a MoU was signed for giving a new dimension to cooperation in the field of tourism, skill development, culture and farming, which will provide more employment opportunities and development.

 

Highlights Of The Development-

  • Speaking on the occasion, the chief minister stressed on the cultural and historical relations between Uttar Pradesh and South Korea and said that the MoU will go a long way in cementing the bond.
  • Adityanath said that there are immense possibilities in tourism in Uttar Pradesh and South Korea…there is also a need to improve cooperation in the field of technology; this will not only bring investment but also create employment opportunities.
  • An agreement was signed in 2000 to develop Ayodhya and Gimhae as sister cities, following which a memorial was constructed in Ayodhya which is visited by a large number of tourists from South Korea every year.
  • People in South Korea believe that 2,000 years ago, an Ayodhya princess had married Korean King Kim Suro. At present, their descendants are members of the ‘Crock Clan’.

Sources- The Indian Express.

GS Paper III- Economic Development.

Lok Sabha Passes GST (Compensation To States) Amendment Bill, 2017: Lok Sabha Passes Bill For Hike In Cess On Luxury Cars To 25%.

 

Background

  • The Lok Sabha on 27th December, 2017 approved a bill to hike cess on luxury vehicles from 15 percent to 25 percent with a view to enhance funds to compensate states for revenue loss following the rollout of GST.
  • The GST (Compensation to States) Amendment Bill, 2017, was passed by the Lower House amid uproar by the opposition over controversial comments made by Union Minister Anant Kumar Hegde on secularism and the Constitution.
  • The Bill seeks to replace the Ordinance which was issued in September, 2017 to give effect to the decision of the GST Council. The Ordinance provided for a hike in the GST cess on a range of cars from mid-size to hybrid variants and the luxury ones to 25 percent.

Highlights Of The Development-

  • In reply to a short debate, Finance Minister Arun Jaitley said the funds collected following hike in cess on luxury vehicles will be used to compensate states for revenue loss on account of implementation of the Goods and Services Tax (GST).
  • He said the GST Council, which comprises state finance ministers, meets every month and takes decision on rationalisation of taxes in the backdrop of revenue collection.
  • Participating in the discussion, members demanded that the GST rate should be reduced on a variety of items including sanitary napkins, agriculture equipments, handicrafts, handloom items and sports goods. Some members even suggested that there should be single tax slab instead of four.
  • In last three months the centre has provided over Rs 1,000 crore as compensation to Odisha and Rs 2,000 crore to West Bengal. T G Venkatesh Babu (AIADMK), Kaushalendra Kumar (JDU), Prem Singh Chandumajhra (SAD) demanded special packages for their states of Tamil Nadu, Bihar and Punjab.

Sources- Firstpost.