🔆Adani’s Vizhinjam Port Approved as India’s First Transshipment Hub
✅Adani Group’s Vizhinjam Port in Kerala has received approval from the government to operate as India’s inaugural transshipment port.
✅This designation is significant as it allows cargo to be transferred from large vessels to smaller ones, contributing to India’s goal of becoming a manufacturing hub.
✅Presently, a substantial portion of India’s transshipment cargo is handled by ports abroad, such as those in Colombo and Singapore.
✅Adani Ports and Special Economic Zone Limited (APSEZ) initiated the Vizhinjam transshipment project in 2015, with a planned completion by 2019. However, it is now slated to commence operations within the current fiscal year.
✅The port aims to capture a significant share of India’s transshipment market, currently dominated by foreign ports like Colombo, Sri Lanka.
📍Infrastructure and Capacity
✅Vizhinjam Port boasts advanced automation and infrastructure capable of accommodating Megamax containerships, the largest vessels worldwide.
✅Its initial phase is designed to handle one million TEUs, with provisions for expansion up to 6.2 million TEUs in subsequent phases.
#gs3
#prelims
#economy
@upsc_4_economy
✅Adani Group’s Vizhinjam Port in Kerala has received approval from the government to operate as India’s inaugural transshipment port.
✅This designation is significant as it allows cargo to be transferred from large vessels to smaller ones, contributing to India’s goal of becoming a manufacturing hub.
✅Presently, a substantial portion of India’s transshipment cargo is handled by ports abroad, such as those in Colombo and Singapore.
✅Adani Ports and Special Economic Zone Limited (APSEZ) initiated the Vizhinjam transshipment project in 2015, with a planned completion by 2019. However, it is now slated to commence operations within the current fiscal year.
✅The port aims to capture a significant share of India’s transshipment market, currently dominated by foreign ports like Colombo, Sri Lanka.
📍Infrastructure and Capacity
✅Vizhinjam Port boasts advanced automation and infrastructure capable of accommodating Megamax containerships, the largest vessels worldwide.
✅Its initial phase is designed to handle one million TEUs, with provisions for expansion up to 6.2 million TEUs in subsequent phases.
#gs3
#prelims
#economy
@upsc_4_economy
🔆Why India Has Been Questioned at the WTO For Its Rice Export Policy
📍Why in the News?
✅Recently, Canada, Brazil, Australia, and the UK have asked India regarding its rice export policy. The countries are seeking clarification at the World Trade Organisation (WTO) whether India had stopped its rice exporters from participating in the UN World Food Program (WFP) tenders earlier this year.
✅These tenders were for broken rice supplies to countries including Cameroon, Togo, and Algeria.
✅The countries also want to know whether India’s decision was contradictory to its commitment to exempt such supplies from export restrictions.
📍India’s Rise Exports:
✅India is the largest rice exporter globally with a 45% share in the world rice market.
India imposed a 20% export duty on white rice in September 2022, followed by a similar duty on parboiled rice in August 2023. The measure was taken to control domestic rice prices.
Domestically, the ban helps control rice prices and highlights the necessity to reduce paddy cultivation due to declining water tables.
✅A balanced approach is crucial to protect consumer and farmer interests while conserving water resources.
Notably, basmati rice, accounting for nearly half of India's exports, remains unaffected by the ban, .minimizing the global impact of the rice export ban.
Since the export ban, India has supplied rice to needy nations and its key strategic partners, but on a case-by-case basis.
📍World Food Programme’s Tenders for Rice:
✅Several African nations are heavily dependent on rice imports from India.
🔰Togo imported a substantial 88% of its rice from India last year.
🔰Benin, the largest global importer of Indian broken rice, procured 61%, while almost half of Senegal's imports of the grain originated from India.
✅In August 2024, the WFP had sought 200,000 tonnes of rice for its humanitarian operations from India.
✅However, in February 2024, the Government barred the domestic rice exporters to participate in United Nations World Food Program tenders.
✅The countries pointed out that if India had actually stopped participation in WFP exports, it would be in violation of its commitment to exempt such supplies from export restrictions.
✅At the WTO’s 12th Ministerial Conference in Geneva in 2022, WTO members had approved a decision to exempt the WFP’s humanitarian food purchases from export restrictions.
✅India had initially not been in favour of the decision as it was concerned about retaining the flexibility of imposing export restrictions to ensure its domestic food security, but had finally given its consent.
#gs2
#ir
#gs3
#economy
@upsc_4_economy
📍Why in the News?
✅Recently, Canada, Brazil, Australia, and the UK have asked India regarding its rice export policy. The countries are seeking clarification at the World Trade Organisation (WTO) whether India had stopped its rice exporters from participating in the UN World Food Program (WFP) tenders earlier this year.
✅These tenders were for broken rice supplies to countries including Cameroon, Togo, and Algeria.
✅The countries also want to know whether India’s decision was contradictory to its commitment to exempt such supplies from export restrictions.
📍India’s Rise Exports:
✅India is the largest rice exporter globally with a 45% share in the world rice market.
India imposed a 20% export duty on white rice in September 2022, followed by a similar duty on parboiled rice in August 2023. The measure was taken to control domestic rice prices.
Domestically, the ban helps control rice prices and highlights the necessity to reduce paddy cultivation due to declining water tables.
✅A balanced approach is crucial to protect consumer and farmer interests while conserving water resources.
Notably, basmati rice, accounting for nearly half of India's exports, remains unaffected by the ban, .minimizing the global impact of the rice export ban.
Since the export ban, India has supplied rice to needy nations and its key strategic partners, but on a case-by-case basis.
📍World Food Programme’s Tenders for Rice:
✅Several African nations are heavily dependent on rice imports from India.
🔰Togo imported a substantial 88% of its rice from India last year.
🔰Benin, the largest global importer of Indian broken rice, procured 61%, while almost half of Senegal's imports of the grain originated from India.
✅In August 2024, the WFP had sought 200,000 tonnes of rice for its humanitarian operations from India.
✅However, in February 2024, the Government barred the domestic rice exporters to participate in United Nations World Food Program tenders.
✅The countries pointed out that if India had actually stopped participation in WFP exports, it would be in violation of its commitment to exempt such supplies from export restrictions.
✅At the WTO’s 12th Ministerial Conference in Geneva in 2022, WTO members had approved a decision to exempt the WFP’s humanitarian food purchases from export restrictions.
✅India had initially not been in favour of the decision as it was concerned about retaining the flexibility of imposing export restrictions to ensure its domestic food security, but had finally given its consent.
#gs2
#ir
#gs3
#economy
@upsc_4_economy
🔆Bima sugam
The Insurance Regulatory and Development Authority of India (IRDAI) roll out Bima Sugam - an online marketplace for buying and selling of insurance policies.
IRDAI claims that the proposed Bima Sugam is a game changer and a UPI moment for the insurance segment.
All insurance requirements, including those for life, health, and general insurance (including motor and travel) will be met by Bima Sugam.
This platform will help in the settlement of claims, whether it is health coverage or death claims, in a paperless manner on the basis of policy numbers.
#gs3
#prelims
#economy
@upsc_4_economy
The Insurance Regulatory and Development Authority of India (IRDAI) roll out Bima Sugam - an online marketplace for buying and selling of insurance policies.
IRDAI claims that the proposed Bima Sugam is a game changer and a UPI moment for the insurance segment.
All insurance requirements, including those for life, health, and general insurance (including motor and travel) will be met by Bima Sugam.
This platform will help in the settlement of claims, whether it is health coverage or death claims, in a paperless manner on the basis of policy numbers.
#gs3
#prelims
#economy
@upsc_4_economy
🔆General Anti-Avoidance Rule (GAAR):
✅GAAR is an anti-tax avoidance law in India to curb tax evasion and avoid tax leaks.
It came into effect on 1st April 2017.
✅The GAAR provisions come under the Income Tax Act, 1961.
✅It is a tool for checking aggressive tax planning, especially those transactions or business arrangements that are entered into with the objective of avoiding tax.
✅It is specifically aimed at cutting revenue losses that happen to the government due to aggressive tax avoidance measures practiced by companies.
✅It is meant to apply to transactions that are prima facie legal, but result in tax reduction.
📍Broadly, tax reduction can be divided into three categories.
✅Tax mitigation is a ‘positive’ term in the context of a situation where taxpayers take advantage of a fiscal incentive provided to them by tax legislation by complying with its conditions and taking cognisance of the economic consequences of their actions.
✅Tax mitigation is permitted under the Act. This tax reduction is acceptable even after GAAR has come into force.
Tax evasion is when a person or entity does not pay the taxes that are due to the government.
✅This is illegal and liable to prosecution. Illegality, wilful suppression of facts, misrepresentation, and fraud—all constitute tax evasion, which is prohibited under law.
✅This is also not covered by GAAR, as the existing jurisprudence is sufficient to cover tax evasion/Sham transactions.
✅Tax avoidance includes actions taken by a taxpayer, none of which are illegal or forbidden by the law
✅With GAAR, there is no difference between tax avoidance and tax evasion. All transactions which have the implication of avoiding tax can come under the scanner of GAAR
#gs3
#economy
@upsc_4_economy
✅GAAR is an anti-tax avoidance law in India to curb tax evasion and avoid tax leaks.
It came into effect on 1st April 2017.
✅The GAAR provisions come under the Income Tax Act, 1961.
✅It is a tool for checking aggressive tax planning, especially those transactions or business arrangements that are entered into with the objective of avoiding tax.
✅It is specifically aimed at cutting revenue losses that happen to the government due to aggressive tax avoidance measures practiced by companies.
✅It is meant to apply to transactions that are prima facie legal, but result in tax reduction.
📍Broadly, tax reduction can be divided into three categories.
✅Tax mitigation is a ‘positive’ term in the context of a situation where taxpayers take advantage of a fiscal incentive provided to them by tax legislation by complying with its conditions and taking cognisance of the economic consequences of their actions.
✅Tax mitigation is permitted under the Act. This tax reduction is acceptable even after GAAR has come into force.
Tax evasion is when a person or entity does not pay the taxes that are due to the government.
✅This is illegal and liable to prosecution. Illegality, wilful suppression of facts, misrepresentation, and fraud—all constitute tax evasion, which is prohibited under law.
✅This is also not covered by GAAR, as the existing jurisprudence is sufficient to cover tax evasion/Sham transactions.
✅Tax avoidance includes actions taken by a taxpayer, none of which are illegal or forbidden by the law
✅With GAAR, there is no difference between tax avoidance and tax evasion. All transactions which have the implication of avoiding tax can come under the scanner of GAAR
#gs3
#economy
@upsc_4_economy
🔆UPI Lite:
✅It is an 'on-device wallet' feature by the National Payments Corporation of India (NPCI) that offers one-click single-factor authentication for UPI transactions of value
less than ₹ 500.
✅It will be accessible to anyone with a compatible device that supports Near Field Communication technology
UPI 123PAY: It is an instant payment system for
feature phone (non-smartphone) users. However, multiple bank accounts cannot be linked.
📍UPI ATM
✅ Launched by Hitachi Payment Services and NPCI as a white-label ATM operated by nonbanking entities.
✅It allows customers to withdraw cash from bank accounts by using UPI applications.
✅The ATM displays a unique QR code generated for the selected amount by the user through the UPI app. Cash will be disbursed by the ATM after authenticating with a mobile UPI PIN.
#gs3
#economy
@upsc_4_economy
✅It is an 'on-device wallet' feature by the National Payments Corporation of India (NPCI) that offers one-click single-factor authentication for UPI transactions of value
less than ₹ 500.
✅It will be accessible to anyone with a compatible device that supports Near Field Communication technology
UPI 123PAY: It is an instant payment system for
feature phone (non-smartphone) users. However, multiple bank accounts cannot be linked.
📍UPI ATM
✅ Launched by Hitachi Payment Services and NPCI as a white-label ATM operated by nonbanking entities.
✅It allows customers to withdraw cash from bank accounts by using UPI applications.
✅The ATM displays a unique QR code generated for the selected amount by the user through the UPI app. Cash will be disbursed by the ATM after authenticating with a mobile UPI PIN.
#gs3
#economy
@upsc_4_economy
Forwarded from CSE EXAM ( UPSC prelims mains)
🔆 Food Processing Industries (FPIs)
✅The food processing industry is a broad term that encompasses the activities involved in transforming raw agricultural products into food products for human consumption.
✅These activities include cleaning, sorting, grading, cooking, preserving, packaging, and distributing food products.
FPIs accounts for about 12% of the country's GDP and employs about 40 million people.
Food processing supply chain Categories
✅ The upstream supply chain: This includes the farmers, suppliers, and processors who provide the raw materials for food processing.
✅ The midstream supply chain: This includes the food manufacturers, distributors, and retailers who transform and deliver food products to consumers.
✅ The downstream supply chain: This includes the consumers who purchase and consume food products.
Key elements
✅ Raw materials: The food processing supply chain starts with the production of raw materials, such as fruits, vegetables, meat, and dairy products.
✅ Processing: The raw materials are then processed into food products, such as canned goods, frozen foods, and snacks.
✅ Packaging: The food products are then packaged for transportation and storage.
✅ Distribution: The food products are then distributed to retailers, who sell them to consumers.
✅ Retail: The consumers purchase the food products from retailers and consume them.
Challenges faced by the food processing industry
✅ Inadequate cold chain infrastructure: India has a cold storage capacity of only 37 million tons against an estimated requirement of 70-100 million tons.
✅ lkHigh post-harvest losses: India loses $13.4 billion worth of food grains annually due to inadequate storage and transport facilities.
✅ Fragmented farm produce: India's farm sector is fragmented with a large number of small and marginal farmers. This makes aggregation of farm produce challenging.
✅ Lack of automation: The food supply chain in India lacks adequate automation in sorting, grading and packaging of agricultural produce. This leads to manual handling and quality issues.
✅ Longer supply chains: Indian farmers generally have to sell to wholesalers who supply to processors, thereby leading to longer and inefficient supply chains.
✅ Create more integrated cold chain networks to link farms, processing units andbconsumers.
✅Promote modern supply chain technologies like RFID, blockchain for traceability and transparency.
✅ Adopt automated grading, sorting and packaging systems to maintain quality and hygiene.
✅ Set up more farm infra like collection centers, primary processing units to aggregata smallholder produce.
✅ Strengthen logistics infrastructure for quick transportation of perishables.
✅ Provide credit, tax incentives and subsidies for producers and processors to invest in supply chain improvement.
#gs3
#prelims
#economy
Join @CSE_EXAM
@upsc_4_economy
✅The food processing industry is a broad term that encompasses the activities involved in transforming raw agricultural products into food products for human consumption.
✅These activities include cleaning, sorting, grading, cooking, preserving, packaging, and distributing food products.
FPIs accounts for about 12% of the country's GDP and employs about 40 million people.
Food processing supply chain Categories
✅ The upstream supply chain: This includes the farmers, suppliers, and processors who provide the raw materials for food processing.
✅ The midstream supply chain: This includes the food manufacturers, distributors, and retailers who transform and deliver food products to consumers.
✅ The downstream supply chain: This includes the consumers who purchase and consume food products.
Key elements
✅ Raw materials: The food processing supply chain starts with the production of raw materials, such as fruits, vegetables, meat, and dairy products.
✅ Processing: The raw materials are then processed into food products, such as canned goods, frozen foods, and snacks.
✅ Packaging: The food products are then packaged for transportation and storage.
✅ Distribution: The food products are then distributed to retailers, who sell them to consumers.
✅ Retail: The consumers purchase the food products from retailers and consume them.
Challenges faced by the food processing industry
✅ Inadequate cold chain infrastructure: India has a cold storage capacity of only 37 million tons against an estimated requirement of 70-100 million tons.
✅ lkHigh post-harvest losses: India loses $13.4 billion worth of food grains annually due to inadequate storage and transport facilities.
✅ Fragmented farm produce: India's farm sector is fragmented with a large number of small and marginal farmers. This makes aggregation of farm produce challenging.
✅ Lack of automation: The food supply chain in India lacks adequate automation in sorting, grading and packaging of agricultural produce. This leads to manual handling and quality issues.
✅ Longer supply chains: Indian farmers generally have to sell to wholesalers who supply to processors, thereby leading to longer and inefficient supply chains.
✅ Create more integrated cold chain networks to link farms, processing units andbconsumers.
✅Promote modern supply chain technologies like RFID, blockchain for traceability and transparency.
✅ Adopt automated grading, sorting and packaging systems to maintain quality and hygiene.
✅ Set up more farm infra like collection centers, primary processing units to aggregata smallholder produce.
✅ Strengthen logistics infrastructure for quick transportation of perishables.
✅ Provide credit, tax incentives and subsidies for producers and processors to invest in supply chain improvement.
#gs3
#prelims
#economy
Join @CSE_EXAM
@upsc_4_economy