UPSC IAS The Hindu Current Affairs 7th JUNE 2018 highlights are:
- They allow for flexibility to continue political engagement and economic cooperation with their common adversary.
- They avoid entrapment of being dragged in to a partners dispute and potentially in to a conflict.
- At the same time, strategic partnership provides for regular political and military interactions for a collaborative approach to strategic policies.
India and Japan relations perfectly figure in to the above relationship.
- India will not get deep in to Japan disputes and the same is the case with Japan. A mutual cooperation exists on the wider issues where win win situation exists.
Important developments of India – Japan special strategic and global partnership are
- Japan is the only country India allowed to invest in infrastructure in North east.
- There is a joint infrastructure project development – Asia – Africa Growth corridor.
- Japan and India agreed to have annual summits and 2+ 2 format for defence and foreign ministers meeting.
- India is buying ShinMaywa Amphibious ships from Japan.
- Japan is investing in infrastructure development in Andaman and Nicobar Islands.
Nuclear deal in danger
Trump’s continuous tirade against Iran nuclear deal appears to be an end to Obama era pragmatism. Nuclear deal was successfully able to stop Iran form developing a nuclear weapon. Added to this, Iran never violated the deal. In these circumstances USA imposing sanctions against Iran, will set a dangerous precedent in international agreements. Iran nuclear deal being multilateral agreement, President shall end his rhetoric.
A big broom
Government effort to release names of shell companies, Name and shame its directors may not yield sufficient results to fight unaccounted money. In the process, there is a possibility of harassing genuine companies or directors.
The best way forward is to arrest systemic shortcomings.
Tax payer rights and obligations
Indian tax administration system shall move from an enforcement to a service based model. Intentions of reforms are good but they are reactive. DTAA, GAAR, transfer price mechanism, implementation of GST all have challenges.
improvement in taxpayers’ service, enhanced use of information and communication technology, exchange of information with other agencies, expansion of tax base, compliance management, etc. Need to be improved to make tax administration Service oriented.
Beyond social Media
In India Geographical indications (Registration and protection) act 1999 has provided for registration of Geographical indications. There is no effective monitoring mechanism for quality compliance of the same. Unlike this in the European regulation clearly provides for monitoring at multiple levels. India also shall have the same.
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07 June 2018
RBI raises rates after 4.5 years as crude price surges
Pre emptive strike
The six member monetary policy committee of RBI increased repo rate by 25 basis points to 6.25%. Increase in inflation expectation and crude prices have made Monetary policy committee to maintain the rates. Inspite of this, RBI kept its neutral stance intact.
Internationally, flight of capital is a major concern. Increasing interest rates in USA led to increased flight of capital from developing markets.
No Longer seeing eye to eye?
At change la dialogue perspectives of Indian Prime Minister Modi and US defence secretary James mantis differed significantly from each other.
Prime Minister Modi spoke of Indo pacific region as a geographical continuity and defence secretary spoke it as a strategic theatre for his military command.
Added to this, India is engaging with Russia and China and participated in military exercises at SCO. At the same time India informed Quad that it has no intention to militaries it. It also did not agree Australia to join malabar exercises. Foundational agreements between USA and India did not move forward. It all shows that India is trying to rebalance its foreign policy posture. Major reasons are
- USA trade protectionism is not in the interests of India. Its tariffs, visa policies are hurting India.
- India wants Multi National companies stationed in USA to establish their data servers in india and RBI also has framed rules on Data localisation on Indian servers. It may not be acceptable to USA.
- USA withdrawal from Iran Nuclear deal is not in the energy interests of India.
- USA recently enacted CAASA act to counter its adversaries. It is creating problems for India to import s400 Triumph anti missile system from Russia.
- USA administration is in flux.Regular overhauling of important key positions failed for our diplomats to create strong relations with USA establishment.
Defend the deal
Iran Nuclear deal need to be protected in the best interests of Non proliferation. Inspite of USA withdrawl, if EU can stand to protect it, it will continue. Iran’s recent announcement to enrich Uranium is a direct warning to EU that its patience is waning off.
The power of persuasion
Congress has its roots in inclusivity. Inclusion of different opinions and views is part of its culture. Visit of former president Pranab Mukherjee need to be seen in the same light.