Blog
March13th,2021 Current Affairs Update
TOPIC: GS 2 Bilateral, Regional and Global Groupings and Agreements involving India and/or affecting India’s interests
QUAD leaders for ‘open, free ‘Indo- pacific
What is the news?
Indian PM Narendra Modi, US President Joe Biden, Japanese PM Yoshihide Suga and Australian Prime minister Scott Morrison attended QUAD virtual meeting
Main Highlights of Meeting
- Cooperation among the member countries to beat the global pandemic , with joint partnership on vaccine
- Emphasised on united democratic values and commitment to a free ,open and inclusive Indo pacific .
- Main agenda covering areas like vaccines , climate change and emerging technologies to make QUAD a force of global good
- They also emphasised that Indo –pacific region should be governed in accordance with human rights , international law, committed to upholding ,universal values and free from coercion
- The vaccine expert working group , a critical and emerging technology working group and a climate working group for technology , capacity building and climate finance were cleared during the summit
Need for QUAD
- India’s focus inevitably shifted to the construction of a “multipolar Asia”, the Quad and its central role in constructing a stable balance of power in Asia became apparent.
- Relative rise in Delhi’s international standing, the breakdown of the great power consensus on economic globalization and the breakout of the US-China rivalry
- For India the Quad is really about addressing the growing power imbalance with China that has manifold consequences for India’s security and prosperity as well its regional and international standing.
- The US, Australia, Japan, and India are on the verge of joining hands to build a rare-earth procurement chain to take on the dominance of China in supplying the elements to makers of everything from smartphones to high-performance motors to EV batteries.
- New Delhi has in recent months signed logistics support pacts with Australia and Japan and has a robust defence partnership with the US which includes hardware sales as well as military exercises.
Challenges to QUAD
- India is in the middle of a major military standoff with China in Ladakh and frictional engagement along LAC Areas.
- The Australian government has testy relations with China over the origins and spread of the covid-19 pandemic
- Japan has concerns over Chinese intrusions near the Senkaku Islands,
- US is engaged in a war of words with China over the pandemic as well as has outstanding trade issues with Beijing
- China has decided to create hydropower projects comparable to scale to the Three Gorges Dam along the lower reaches of the Brahmaputra.
- China is gaining influence over ASEAN eg: China –Laos railway and China – Thailand railway , 2021 is also the China – ASEAN Year of sustainable development.
China on QUAD
China viewed cooperation between nations should not target or damage interest of a third party and countries should not pursue exclusive blocs
QUAD
The Quadrilateral Security Dialogue (, also known as the Quad or Asian NATO) is an informal strategic forum between the United States, Japan, India and Australia that is maintained by semi-regular summits, information exchanges and military drills between member countries. The forum was initiated as a dialogue in August 2007 by then Prime Minister Shinzo Abe of Japan on “seas of freedom and prosperity” . Joint military exercises between the United States, India, Japan, and Australia, titled as Exercise Malabar.
Mains question
Discuss the strategic importance of QUAD in Indo pacific region .
Source: https://www.thehindu.com/news/national/first-quad-summit-meeting/article34054156.ece
https://indianexpress.com/article/india/quad-summit-china-indo-pacific-region-threats-7226074/
TOPIC: GS 2 Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment.
Prompt Corrective Action (PCA) Framework
What is the news?
LIC owned IDBI bank exit from PCA framework
PCA Analysis
- The PCA framework has been introduced by the RBI to ensure sound financial health of the Banks and to prevent them from incurring losses.
- Under this framework, the RBI monitors the financial health of the banks in terms of 4 indicators and in case of breach of these indicators, the RBI takes corrective action against such banks by putting certain restrictions on them.
- The Indicators used by the RBI to monitor the financial health of the banks are CRAR, Net NPA, Return on assets (ROA), Tier 1 Leverage ratio
Capital to Risk weighted Asset Ratio (CRAR):
The CRAR is the ratio of the Bank’s capital to the risk weighted assets of the Banks. It is defined as(Tier -1 Capital (Equity) + Tier-2 Capital (Debt)/ Risk Weighted Assets (RWAs)).
The CRAR is based on the concept that the banks should have sufficient amount of capital in order to withstand the risk associated with the loans given by them.
Restrictions:
When these parameters reach the set trigger points for a bank mentioned by the RBI, the RBI initiates certain structured and discretionary actions for the bank. Under PCA, the RBI can place certain restrictions based on these parameters. The Restrictions may include the following:
- Halting branch expansion
- Stopping dividend payment
- Cap a bank’s lending limit to one entity or sector.
- Undertake special audit, restructuring operations and activation of recovery plan.
- Banks’ promoters can be asked to bring in new management.
- The RBI can also supersede the bank’s board.
Non-performing assets
A nonperforming asset (NPA) refers to a classification for loans or advances that are in default or in arrears. A loan is in arrears when principal or interest payments are late or missed. A loan is in default when the lender considers the loan agreement to be broken and the debtor is unable to meet his obligations.
Mains question
What is PCA? Critically analyze the RBI clause of PCA framework
TOPIC: GS 2 Effect of Policies and Politics of Developed and Developing Countries on India’s interests, Indian Diaspora
Asia and West Asia
What is the news?
India participated multi nation exercise hosted by United Arab Emirates named Desert Flag
Complexities and Asia link with west Asia
- Asian economics rely heavily on the west Asian states for the supply of crude oil and their association, have increased stakes in safety and security of the region from the perspective of political and economic stability.
- In 2020 Saudi Arabia was India’s top supplier of oil followed by Iraq to India
- Participation of both India and South Korea in these exercise in the Persian gulf is reflective of trends and growing s strategy
- Indian oil tanker named MT Desh shanti was confiscated near strait of hormuz by Iranian force for violating environmental norms
- South Korea tanker MT Hankuk Chemi also confiscated near strait of hormuz by Iranian force for violating environmental norms
India‘s Involvement
- India’s security foot prints in west Asia has steady increase ,and energy security and safe passage of sea routes
- The Indian Navy has made multiple port calls from the UAE and Kuwait to Iran and Qatar in the recent years
Way forward
Regional states will become more responsible for their own security and as Asian economics become stronger stakeholders, their geopolitics will become more visible across the geography
Mains question
Casting the Asian dice on West Asia board. Analyze
https://www.mei.edu/publications/indias-relations-west-asia-what-patterns-and-what-future
PRELIMS PUNCHERS
- Strait of Hormuz
The Strait of Hormuz is a strait between the Persian Gulf and the Gulf of Oman. It provides the only sea passage from the Persian Gulf to the open ocean and is one of the world’s most strategically important choke points. On the north coast lies Iran, and on the south coast the United Arab Emirates and Musandam, an exclave of Oman.
- Kamala Mahal
Lotus Mahal or Kamala Mahal is an important secular structure in Hampi, India. The Lotus Mahal is an example of Indo-Islamic style of architecture and is a two storied structure built in Rubble masonry and finely plastered. The structure was used as residue place for royal family of the Vijayanagara Empire.It is the world heritage site
- Project 75
It is a programme by the Indian navy that entails building six scorpene class attack submarine. It is given support by department of defence production and Indian navy throughout its various phases of construction. Two submarines kalvari and khanderi have been commissioned into Indian navy.
Source : https://pib.gov.in/PressReleasePage.aspx?PRID=1672314
- Maitri Setu
PM Narendra Modi and her Bangladesh counterpart Sheikh Hasina inaugurated the bridge over river Feni. The 1.9 km long bridge joins sabroom in India and Ramgarh in Bangladesh. With this inauguration, Tripura is set to become the ‘Gateway of North East’ with access to Chittagong port of Bangladesh.
Source: https://pib.gov.in/Pressreleaseshare.aspx?PRID=1703042
PRELIMS QUESTION
Question 1 Maitri Setu inaugurated recently between
- India and Myanmar
- India and Srilanka
- India and Bangladesh
- India and Nepal
- Answer : 3
PM Narendra Modi and her Bangladesh counterpart Sheikh Hasina inaugurated the bridge over river Feni. The 1.9 km long bridge joins sabroom in India and Ramgarh in Bangladesh. With this inauguration, Tripura is set to become the ‘Gateway of North East’ with access to Chittagong port of Bangladesh.
Question 2:Consider the following statement with reference Kamala Mahal
1.The Kamala Mahal is an example of Indo-Islamic style of architecture.
2.The structure was used as residue place for royal family of the Bahamani kingdom
Select the correct statement using code given below.
(a). 1only (b).1 and 2
(c). 2and 3 (d). None of the above
Answer : A
Lotus Mahal or Kamala Mahal is an important secular structure in Hampi, India. The Lotus Mahal is an example of Indo-Islamic style of architecture and is a two storied structure built in Rubble masonry and finely plastered. The structure was used as residue place for royal family of the Vijayanagara Empire.It is the world heritage site