THIS FILE CONTAINS KEYWORDS, NEWS, EDITORIALS AND QUESTION BANK

1 JUNE 2017

KEYWORDS

1. GDP
Gross domestic product (GDP) is a monetary measure of the market value of all final goods and services produced in
a country in a year.
2. NDP
The net domestic product (NDP) equals the gross domestic product (GDP) minus depreciation on a country's capital
goods.
3. GNP
Gross national product (GNP) is the market value of all the products and services produced in one year by labor and
property supplied by the citizens of a country.
Unlike gross domestic product (GDP), which defines production based on the geographical location of production,
GNP indicates allocated production based on ownership.
4. GVA
Gross Value addition represents the contribution of labour and capital to the production process.
GVA = GDP - taxes + subsidies
5. Vizhinjam International Multipurpose Deepwater Seaport Project
Rs. 7,525-crore project in Kerala.
pact signed by the previous United Democratic Front government former CM Oommen Chandy with Adani
Vizhinjam Ports Ltd (AVLP)
AVLP of Adani Ports and Special Economic Zone Ltd (APSEZ), the private multi-port operator, was selected
through global bidding to build the superstructure and operate the seaport.
it got the Centres clearance for viability funding
observations made by the Comptroller and Auditor General of India (CAG) on lapses on the part of the State
government while signing the agreement with AVLP.
i. States interest was not protected in the pact and that by extending the contract period of the project by
40 years, the Adani Group would gain an extra income of Rs. 29,217 crore.
ii. Although the concession period for Public Private Partnership (PPP) projects is 30 years, the Chief
Minister said the CAG had pointed out that the AVLP had been given 40 years.
6. Shanghai Cooperation Organisation
It is a Eurasian political, economic, and military organisation which was founded in 2001 in Shanghai by the
leaders of China, Kazakhstan, Kyrgyzstan, Russia, Tajikistan, and Uzbekistan.
These countries, except for Uzbekistan, had been members of the Shanghai Five, founded in 1996; after the inclusion
of Uzbekistan in 2001, the members renamed the organisation.
On July 10, 2015, the SCO decided to admit India and Pakistan as full members.
India and Pakistan signed the memorandum of obligations on 24 June 2016 at Tashkent, thereby starting the
formal process of joining the SCO as full members.
They are expected to become full members by the next meeting at Astana in 2017
7. Eurasian Economic Union (EAEU)
It is an economic union of states located primarily in northern Eurasia.
A treaty aiming for the establishment of the EAEU was signed on 29 May 2014 by the leaders of Belarus,
Kazakhstan and Russia, and came into force on 1 January 2015.
Armenia and Kyrgyzstan also acceded later.
8. International North South Transport Corridor (INSTC)
It is a 7,200-km-long multi-mode network of ship, rail, and road route for moving freight between India,
Russia, Iran, Europe and Central Asia.
The route primarily involves moving freight from India, Iran, Azerbaijan and Russia via ship, rail and road.
The objective of the corridor is to increase trade connectivity between major cities such as Mumbai, Moscow,
Tehran, Baku, Bandar Abbas, Astrakhan, Bandar Anzali, etc.
Dry runs of two routes were conducted in 2014, the first was Mumbai to Baku via Bandar Abbas and the second was
Mumbai to Astrakhan via Bandar Abbas, Tehran and Bandar Anzali. The objective of the study was to identify and
address key bottlenecks. The results showed transport costs were reduced by "$2,500 per 15 tons of cargo".
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 This will also synchronize with the Ashgabat agreement, a Multimodal transport agreement signed by India, Oman,
Iran, Turkmenistan, Uzbekistan and Kazakhstan, for creating an international transport and transit corridor
facilitating transportation of goods between Central Asia and the Persian Gulf.
9. Strategic Partnership (SP) model
meant to promote the private sector in defence manufacturing, Make in India in Defence.
Proposed to create domestic expertise in four key areas, namely, fighter aircraft, helicopters, submarines, and
armoured vehicles and main battle tanks.
A company would be selected for each area based on its competence, which would then tie up with the foreign
Original Equipment Manufacturer selected through the procurement process, to build the platform in India with
significant technology transfer.
The Armed Forces are apprehensive over the overall model as they feel the SP model will block new technology and
new players coming to the defence sector.
On the other hand, existing defence players argue for committed orders for the next 30 years to give them the
economies of scale as defence involves large investments.
10. Kalvari
First of the Six Scorpene submarines being built under Project-75 by Mazgaon Docks Limited (MDL) with
technology transfer from France.
11. Paris climate accord
It is an agreement within the United Nations Framework Convention on Climate Change (UNFCCC) dealing
with greenhouse gas emissions mitigation, adaptation and finance starting in the year 2020.
The language of the agreement was negotiated by representatives of 195 countries at the 21st Conference of the
Parties of the UNFCCC in Paris and adopted by consensus on 12 December 2015.
It was opened for signature on 22 April 2016 (Earth Day) at a ceremony in New York.
As of May 2017, 195 UNFCCC members have signed the treaty, 147 of which have ratified it.
After several European Union states ratified the agreement in October 2016, there were enough countries that had
ratified the agreement that produce enough of the world's greenhouse gases for the agreement to enter into force.
The agreement went into effect on 4 November 2016.
The contribution that each individual country should make in order to achieve the worldwide goal are determined by
all countries individually and called "nationally determined contributions" (NDCs).
The aim of the convention is described in Article 2, "enhancing the implementation" of the UNFCCC through:
(a) Holding the increase in the global average temperature to well below 2C above pre-industrial levels and to
pursue efforts to limit the temperature increase to 1.5C above pre-industrial levels, recognizing that this
would significantly reduce the risks and impacts of climate change;
(b) Increasing the ability to adapt to the adverse impacts of climate change and foster climate resilience and low
greenhouse gas emissions development, in a manner that does not threaten food production;
(c) Making finance flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient
development.
12. National Payments Corporation of India (NPCI)
It is the umbrella organisation for all retail payment systems in India
Founded in 2008, NPCI is a not-for-profit organisation registered under section 8 of the Companies Act 2013.
The organisation is owned by a consortium of major banks, and has been promoted by the countrys central bank, the
Reserve Bank of India.
Its recent work of developing Unified Payments Interface aims to move India to a cashless society with digital
transactions.
It has successfully completed the development of a domestic card payment network called RuPay, reducing the
dependency on international card schemes.
13. Unified Payments Interface (UPI)
It is a payment system launched by National Payments Corporation of India (NPCI) and regulated by the Reserve
Bank of India (RBI)
It facilitates the instant fund transfer between two bank accounts on the mobile platform.
UPI is built over Immediate Payment Service (IMPS) for transferring funds using Virtual Payment Address (a unique
ID provided by the bank), Account Number with IFS Code, Mobile Number with MMID (Mobile Money Identifier),
Aadhaar Number, or a one-time use Virtual ID.
An MPIN (Mobile banking Personal Identification number) is required to confirm each payment.
14. BHIM app
BHIM (Bharat Interface for Money) is a Mobile App developed by National Payments Corporation of India (NPCI)
It is based on the Unified Payment Interface (UPI).
It was launched by Narendra Modi, the Prime Minister of India, at a Digi Dhan mela on 30 December 2016. I
It has been named after Dr. Bhimrao R. Ambedkar and is intended to facilitate e-payments directly through banks
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 This UPI app supports all Indian banks which use that platform, which is built over the Immediate Payment Service
infrastructure and allows the user to instantly transfer money between the bank accounts of any two parties.
15. Immediate Payment System (IMPS)
It is an instant real-time inter-bank electronic funds transfer system in India.
IMPS offers an inter-bank electronic fund transfer service through mobile phones.
Unlike NEFT and RTGS, the service is available 24/7 throughout the year including bank holidays.
It is managed by the National Payments Corporation of India (NPCI) and is built upon the existing National
Financial Switch network.
In 2010, the NPCI initially carried out a pilot for the mobile payment system with 4 member banks (State Bank of
India, Bank of India, Union Bank of India and ICICI Bank).
16. RTGS transactions
Real-time gross settlement are specialist funds transfer systems where the transfer of money or securities takes place
from one bank to another on a "real time" and on a "gross" basis.
Settlement in "real time" means a payment transaction is not subjected to any waiting period, with transactions being
settled as soon as they are processed.
"Gross settlement" means the transaction is settled on one-to-one basis without bundling or netting with any other
transaction. "
RTGS systems are typically used for high-value transactions that require and receive immediate clearing.
17. NEFT transactions
National Electronic Funds Transfer (NEFT) is an electronic funds transfer system maintained by the Reserve Bank of
India (RBI).
Started in November 2005, NEFT is a facility enabling bank customers in India to transfer funds between any two
NEFT-enabled bank accounts on a one-to-one basis. It is done via electronic messages.
NEFT settles fund transfers in hourly batches (now 30 minutes batches) with 12 (Now 23 settlements)settlements
occurring between 8:00 AM and 7:00 PM on week days.
18. e-wallets
It is a digital wallet i.e. on an electronic device that allows an individual to make electronic transactions.
This can include purchasing items on-line with a computer or using a smartphone to purchase something at a store.
An individual's bank account can also be linked to the digital wallet.
Increasingly, digital wallets are being made not just for basic financial transactions but to also authenticate the
holder's credentials.
Individuals might also have their drivers license, health card, loyalty card(s) and other ID documents stored on the
phone. The credentials can be passed to a merchants terminal wirelessly via near field communication (NFC). For
example, a digital-wallet could potentially verify the age of the buyer to the store while purchasing alcohol.
19. Indian Economic Zone (IEZ) in Bangladesh
India-Bangladesh MoU for construction of the IEZ in June 2015
Three mega Special Economic Zones (SEZ) exclusively for Indian companies will be established in Bangladesh
Indian Companies cite constraints, including inadequate infrastructure and lack of uninterrupted power supply at
Mongla, Bheramara and Mirsarai the sites in Bangladesh for the proposed Indian SEZs.
Indian investment in the Zone will be facilitated through the concessional Line of Credit (LoC) extended by the
Government of India to the Government of Bangladesh.
aimed at increasing Indian investment in Bangladesh and giving a greater role to the private sector
Trade balance is heavily in Indias favour, as out of the total bilateral trade of $6.8 billion with Bangladesh in
2015-16, Indias exports were worth $6 billion.
Boosting investments from India into Bangladesh is aimed at offsetting this trade imbalance.
The move to increase investments from India also comes in the backdrop of China, in October 2016, promising
investments worth around $24 billion in Bangladesh.
20. Solar Probe Plus
NASA to launch it in summer 2018.
It will fly within 6.4 million km of the suns surface right into the solar atmosphere.
It will be subjected to brutal heat and radiation like no other man-made structure before.
The purpose is to study the suns outer atmosphere and better understand how stars like ours work.

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 NEWS

1 JUNE 2017

Sr. Topic News

No.

1. GS II: INTERNATIONAL - Blast hits Kabul's diplomatic quarter

ASIA
2. GS II: POLITY - JUDICIARY Rajasthan High Court recommends declaration of
cow as national animal
3. GS III: ECONOMY India is no longer the fastest-growing economy
INDICATORS
4. GS II: POLITY - CAG Three-member panel to probe Vizhinjam pact
5. GS II: SOCIAL - School education in Bihar has collapsed'
EDUCATION
6. GS III: SECURITY PDP charts its own course for talks
7. GS II: GOVERNANCE Yogi Adityanath sees chance to solve Ayodhya
dispute
8. GS III: ECONOMY - Trade unions oppose Centre's move to privatise
AVIATION Air India
9. GS II: BILATERAL INDIA- Russia a natural ally: Modi
RUSSIA
10. GS II: BILATERAL INDIA- India, Spain call for zero tolerance' to terrorism
EUROPE
11. GS II: POLITY - Preventive detention not a quick alternative to
JUDICIARY normal legal process: SC
12. GS III: DEFENCE Strategic Partnership model takes effect
13. GS III: DEFENCE First Scorpene submarine Kalvari to be
commissioned by July
14. GS II: INTERNATIONAL - Donald Trump may quit Paris climate accord
USA
15. GS II: INTERNATIONAL - Russia fires cruise missiles, targets IS positions in
ASIA Syria
16. GS III: ECONOMY - Non-cash transactions in May slide back to near
INDICATORS Nov. levels
17. GS II: BILATERAL INDIA- Plan for Indian SEZs in Bangladesh hits bump
BANGLADESH
18. GS III: S&T - SPACE NASA to fly Solar Probe Plus right into sun's
atmosphere in 2018

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GS II: INTERNATIONAL - ASIA
Blast hits Kabuls diplomatic quarter

The massive suicide truck bomb attack in Kabul killed at least 90 people and wounded around
400.
It has also damaged several embassies in the citys highly-fortified diplomatic quarter.
The French, Chinese and Turkish embassies were among those hit, the three countries said
adding that theres no immediate signs of injuries to their diplomats.
The BBC said a driver for the British broadcaster was killed and four of its journalists were
wounded.
No group immediately claimed responsibility for the blast, though both the Taliban and the
Islamic State group have staged large-scale attacks in the Afghan capital in the past.
The Taliban issued a statement denying any involvement and condemning all attacks against
civilians.
Afghan President Ashraf Ghani condemned the attack, which came just days into the Muslim holy
month of Ramadan.

GS II: POLITY - JUDICIARY

Rajasthan High Court recommends declaration of cow as national animal

The Rajasthan High Court recommended that the Centre declare the cow as a national animal
and increase the punishment for cow slaughter to life imprisonment.
In a slew of directions passed on a Public Interest Litigation (PIL), the court asked the State Chief
Secretary to take steps to get the suggestions implemented.
Disposing of the PIL moved by Jago Janata Society regarding the conditions at Hingonia gaushala
in Jaipur, the court also appointed a committee of lawyers to keep a watch on the cow shelter's
functioning.
The Forest Department was asked to plant 5,000 saplings every year in the gaushala to keep it green.
The judgment has come amid a raging debate over the Centre's notification banning the sale of cattle
for slaughter and the increasing instances of attacks and violence by cow vigilantes on the roads in
several States on the suspicion of smuggling bovine animals.

GS III: ECONOMY INDICATORS

India is no longer the fastest-growing economy

India lost its fastest-growing major economy tag in the fourth quarter of 2016-17, with GDP
growth coming in at 6.1% compared with Chinas 6.9% in the same period.
Data from the Ministry of Statistics showed GDP grew 7.1% in the financial year 2016-17, slower
than the 8% registered in 2015-16.
The GDP numbers were based on the new 2011-12 base year recently adopted for data including
the Index of Industrial Production (IIP) and Wholesale Price Index (WPI).
Gross value added (GVA) growth was 6.6% for 2016-17 and 5.6% in the fourth quarter, compared
with 7.9% in 2015-16.
Demonetisation has clearly had a tangible and adverse impact.
The GDP growth rate is slightly higher (than GVA growth) because of a more than
proportionate increase in indirect tax net of subsidies.

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GS II: POLITY - CAG
Three-member panel to probe Vizhinjam pact

A three-member commission headed by former judge of the High Court C.N. Ramachandran
Nair will inquire into the pact signed by the previous United Democratic Front government
with Adani Vizhinjam Ports Ltd for the Rs. 7,525-crore Vizhinjam International Multipurpose
Deepwater Seaport.
Kerala Chief Minister Pinarayi Vijayan said the commission had been given six months time to
submit the report and that the terms of reference of the inquiry would be finalised later.
The inquiry had been ordered against the backdrop of the observations made by the Comptroller
and Auditor General of India (CAG) on lapses on the part of the State government while
signing the agreement with AVLP.
The CAGs report had mentioned that the States interest was not protected in the pact and that by
extending the contract period of the project by 40 years, the Adani Group would gain an extra income
of Rs. 29,217 crore.
Although the concession period for Public Private Partnership (PPP) projects is 30 years, the
Chief Minister said the CAG had pointed out that the AVLP had been given 40 years.
AVLP of Adani Ports and Special Economic Zone Ltd (APSEZ), the private multi-port operator,
was selected through global bidding to build the superstructure and operate the seaport.
The work for the dream project of the State is on.
Former Chief Minister Oommen Chandy, who took the lead in signing the agreement with the
Adanis, had maintained that the 40-year period had been agreed to as per the model PPP agreement
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 approved by the erstwhile Planning Commission. Besides, it had got the Centres clearance for
viability funding.

GS II: SOCIAL - EDUCATION

School education in Bihar has collapsed

A day after the declaration of the Class 12 (or intermediate) results of the Bihar State Education
Board (BSEB) in which more than 64% of the students had failed, students protested in Patna
and at several district headquarters, demanding re-evaluation of their answer sheets.
Concerned over the dismal pass percentage of 34.25%, Chief Minister Nitish Kumar held a meeting
with Education Minister Ashok Choudhary and BSEB chairman Anand Kishor.
Meanwhile, students and experts blamed the drastic fall in the pass percentage on the rampant
corruption in the States education system which, they said, had collapsed.
A large number of students who had cleared their IIT-JEE entrance examination, too, have
failed in their Class 12 board exams.
Earlier in 1996, only 10.58 students passed the Intermediate Examination after the Patna High Court
intervened to ensure that there was no cheating in the exams.
However, in following years, the pass percentage rose sharply, with regular reports of mass-
cheating, and large-scale corruption at BSEB.
The States education system has collapsed and become corrupt. It got exposed because the exams
were conducted strictly. The State government is responsible for this. There is an urgent need for
qualitative change, an expert on the Bihar education system said.

GS III: SECURITY
PDP charts its own course for talks

PDP vice-president Mohammad Sartaj Madani warned that the people of Kashmir were
agonised by the confrontationist politics and provocative voices.

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 Distancing itself from coalition partner Bharatiya Janata Partys (BJP) recent approach in
Kashmir, ruling Peoples Democratic Party (PDP) said it will work towards holding a dialogue
with Hurriyat and Pakistan.
The PDP has forged an alliance with the BJP to see that the State comes out of instability and will
ensure this objective is accomplished.

GS II: GOVERNANCE
Yogi Adityanath sees chance to solve Ayodhya dispute

Stressing that a good opportunity had come up to resolve the Babri Masjid-Ram Janmabhoomi
dispute in Ayodhya through dialogue, Chief Minister Yogi Adityanath promised all possible
support to the two sides if they agree on talks.
I was happy to know that many Muslim organisations in Lucknow were in favour of handing over
the Ramjanmabhoomi to the Hindu society, the CM said at a function in Ayodhya.
The Supreme Court had in March 2017 made a suggestion that the dispute should be settled
through talks.
During his tour of the temple town, Mr. Adityanath offered prayers at the makeshift Ram Temple
near the disputed site and visited the Hanuman Garhi temple.
He also performed elaborate Hindu rituals on the ghats of the River Saryu.

GS III: ECONOMY - AVIATION

Trade unions oppose Centres move to privatise Air India

The Centre of Indian Trade Unions (CITU), affiliated to the CPI (M), voiced its opposition to
the Centres move to consider privatisation of Air India, saying the move was not required as
the national carrier was registering profits in recent times.
CITU said the Air India management should not be held responsible for bungling and disastrous
experiments by successive governments which had left the national carrier, which was registering
profits till 2007, debt-burden.
After prolonged losses since 2008, Air India has started making operating profit. For the year
2015-16, it was Rs. 105 crore and for 2016-17, estimated operating profit is going to be around Rs.
300 crore, Tapan Sen, general secretary at CITU said.

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 Terming the airlines huge debt as the main reason behind its accumulated losses, it criticised any
move to write off the airlines debt to pave the way for private investors. Had the same magnanimity
of writing off debt been offered to Air India, it could very well eliminate its huge accumulated losses
substantially, Mr. Sen said.
Finance Minister Arun Jaitley had earlier said that government is looking for a strategic investor in
Air India.

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GS II: BILATERAL INDIA-RUSSIA
Russia a natural ally: Modi

Enhancing bilateral trade, nuclear and technology cooperation will be at the top of the agenda,
but multilateral issues will hold centre stage during his talks with Russian President Vladimir
Putin at St. Petersburg, Prime Minister Narendra Modi indicated.
He said that India and Russia were natural partners in fighting terrorism, and promoting a
multipolar international system.
The PMs words are significant as they come amid a visible strain in India-Russia ties that have
further strained since his last meeting with President Putin in Goa, on the sidelines of the BRICS
summit in October 2016, and rising discomfort over Russias growing alliance with China and
ties with Pakistan.
The BRICS meeting came against the backdrop of the Uri attacks, as well as Russias decision to
go ahead with military exercises with Pakistan despite the Modi governments publicly stated
policy of isolating Pakistan.
Indias other worry has been over Russia folding into Chinese President Xis prestige project, the
Belt and Road Initiative (B&RI) on the back of the Chinese investment in the $400 billion Russia-
China Power of Siberia gas pipeline that is expected to be operational by 2019-2020.
The grouping is particularly problematic for India, given that it will enter the Shanghai
Cooperation Organisation with Pakistan next week, when Mr. Modi travels to Kazakhstan.
In previous decades, New Delhi may have expected Moscow, and President Putin to champion
Indias cause, leaning on China to engage on Indias concerns. But the reality of the past few years is
that India has been unable to effect such support from Russia on any of its issues with China,
including on the Nuclear Suppliers Group and designating Masood Azhar at the UNSC.
Mr. Putin has called the two countries equal partners in international affairs, suggesting that
a free trade agreement between the Eurasian Economic Union and India, as well as developing
the International North South Transport Corridor would be a part of it.
The two sides are also expected to announce, or at least finalise, the MoU for the Kudankulam
Nuclear Power Project units 5&6. We have had discussions with many countries, but Russia has
emerged as the only country with which we have successfully collaborated in the atomic power
sector, said Indian Ambassador Pankaj Saran.

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GS II: BILATERAL INDIA-EUROPE
India, Spain call for zero tolerance to terrorism

India and Spain stressed that there should be zero tolerance to terrorism and called on the
international community to end selective or partial approaches in combating the menace
which posed the gravest threat to international peace and stability.
Prime Minister Narendra Modi is the first Indian PM to visit Spain since 1992.
The two sides signed seven agreements; on transfer of sentenced persons, visa waiver for holders
of diplomatic passports, cooperation in organ transplantation, cybersecurity, renewable
energy, civil aviation and one between Indias Foreign Service Institute and Diplomatic Academy of
Spain.
There are more than 200 Spanish companies in India that are actively involved in road construction,
railways, wind power, defence and smart cities.

GS II: POLITY - JUDICIARY

Preventive detention not a quick alternative to normal legal process: SC

Preventive detention of a person by a State after branding him a goonda merely because the
normal legal process is ineffective and time-consuming in curbing the evil he spreads is illegal,
the Supreme Court has held.
The judgment dealt with the case of a seed manufacturer in Telangana who was taken into
preventive detention by the authorities on the allegation that he is selling spurious chilli seeds to
poor farmers.
The judgment held that detention of a person was a serious matter affecting the liberty of the citizen.
Preventive detention cannot be resorted to when sufficient remedies are available under the
general laws of the land for any omission or commission under such laws, the Supreme Court
observed.
The order of preventive detention, though based on the subjective satisfaction of the detaining
authority, is nonetheless a serious matter, affecting the life and liberty of the citizen under
Articles 14, 19, 21 and 22 of the Constitution. The power being statutory in nature, its exercise
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 has to be within the limitations of the statute, and must be exercised for the purpose the power is
conferred, Justice Sinha wrote.
If the power is misused, or abused for collateral purposes, and is based on grounds beyond the
statute, takes into consideration extraneous or irrelevant materials, it will stand vitiated as being in
colourable exercise of power, the court observed.

GS III: DEFENCE
Strategic Partnership model takes effect

The much-awaited and long-delayed Strategic Partnership (SP) policy, intended to promote
Indian private sector participation in defence manufacturing, formally came into effect.
The Defence Ministry notified the policy as the final chapter under the Defence Procurement
Procedure.
The SP model is being implemented to enable participation of private Indian firms in Make in
India in defence. The SP is expected to play the role of a system integrator by building an extensive
ecosystem comprising development partners, specialised vendors and suppliers, says the policy.
Various selection and evaluation criteria have been stipulated for short-listing the SP.
The policy acknowledges that the Indian private sector currently has limited experience in
defence manufacturing and even lesser in respect of final integration of complex defence
systems and sub-systems.
In view of this, the policy states, besides any experience in defence manufacturing, potential SPs
will be identified primarily based on their experience and competence in integration of multi-
disciplinary functional system of systems, engineering and manufacturing.
In a bid to avoid cancellation of deals in case of a single vendor situation, the policy states that
even if only one Original Equipment Manufacturer (OEM) submits a proposal in any given
segment, the process of technical evaluation will be completed.
Of the four segments under SP, two are for the Navy: submarines and utility helicopters. The others
are single-engine fighter aircraft for the Indian Air Force and armoured vehicles for the Army.
Both the Navy deals have been held up from some time due to delay in finalising the SP policy.

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GS III: DEFENCE
First Scorpene submarine Kalvari to be commissioned by July

The first of the six Scorpene submarines being built in India under technology transfer is likely
to join the Navy by end of July 2017, Navy Chief Admiral Sunil Lanba said.
Kalvari is going through its final phase of trials.
Six Scorpene submarines are being built under Project-75 by Mazgaon Docks Limited (MDL)
with technology transfer from France.

GS II: INTERNATIONAL - USA

Donald Trump may quit Paris climate accord

U.S. President Donald Trump is expected to withdraw the United States from the Paris climate
accord, a White House official said, confirming a move certain to anger allies that spent years
negotiating the landmark agreement to reduce carbon emissions.
But there may be caveats in the language that Mr. Trump uses to announce the withdrawal, leaving
open the possibility that the decision isnt final, according to the official, who insisted on anonymity
in order to discuss the decision before the official announcement.
Nearly 200 nations, including the United States under President Barack Obamas
administration, agreed in 2015 to voluntarily reduce their greenhouse gas emissions in an effort
to combat climate change.
Withdrawing would leave the United States aligned only with Russia among the worlds
industrialised economies in rejecting action to combat climate change.
Mr. Trump has repeatedly expressed doubts about climate change, at times calling it a hoax to
weaken U.S. industry. An overwhelming majority of scientists, however, say climate change is
driven by human use of fossil fuels.
Since taking office, Mr. Trump has moved to delay or roll back federal regulations limiting
greenhouse gas emissions while pledging to revive the long-struggling U.S. coal mines.
What is not yet clear is whether Mr. Trump plans to initiate a formal withdrawal from the Paris
accord, which under the terms of the agreement could take three years, or exit the underlying
U.N. climate change treaty on which the accord was based.
The U.S. is the worlds second largest emitter of carbon, following only China. Beijing, however,
has reaffirmed its commitment to meeting its targets under the Paris accord, recently cancelling
construction of about 100 coal-fired power plants and investing billions in massive wind and
solar projects.
Mr. Trump had vowed during his campaign to cancel the Paris deal within 100 days of becoming
President, as part of an effort to bolster U.S. oil and coal industries. That promise helped rally
supporters sharing his scepticism of global efforts to police U.S. carbon emissions.
After taking office, however, Mr. Trump faced pressure to stay in the deal from investors,
international powers and business leaders, including some in the coal industry. He also had to
navigate a split among his advisers on the issue.

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GS II: INTERNATIONAL - ASIA
Russia fires cruise missiles, targets IS positions in Syria

Russians warships in the Mediterranean Sea fired four cruise missiles at the Islamic State
groups positions in Syria in the area of the ancient town of Palmyra., the Russian Defence
Ministry said.
The announcement came as Syrian government troops pushed ahead in their offensive against IS
and militants in central and northern Syria.
Syrian troops have been on the offensive for weeks in northern, central and southern part of
the country against IS and U.S.-backed rebels under the cover of Russian airstrikes, gaining
an area almost half the size of neighbouring Lebanon.
Most recently, Syrian troops and their allies have been marching toward the IS stronghold of
Sukhna, about 60 km northeast of Palmyra.

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 The strategic juncture in the Syrian desert aids government plans to go after IS in Deir el-Zour,
one of the militants last major strongholds in Syria. The oil-rich province straddles the
border with Iraq and is the extremist groups last gateway to the outside world.
Russia, a staunch Damascus ally, has been providing air cover to Syrian President Bashar Assads
offensive on IS and other insurgents since 2015. Moscow had fired cruise missiles from warships in
the past, as well as from mainland Russia against Mr. Assads opponents.
The fighting came days after the U.S. told Syrian government forces and their allies to move
away from an area near the Jordanian border where the coalition is training allied rebels. The
warning comes less than two weeks after the Americans bombed Iranian-backed troops there
after they failed to heed similar warnings.

GS III: ECONOMY - INDICATORS

Non-cash transactions in May slide back to near Nov. levels

The value of non-cash payments is on track to contract for the second consecutive month in
May following the contraction seen in April, according to representative data released by the
Reserve Bank of India.
The RBI data, collected from a sample of banks and the National Payments Corporation of
India, shows that the value of non-cash transactions up to May 28 is only marginally higher than the
amount transacted in November, the month demonetisation was announced, and significantly lower
than the amount seen in subsequent months.

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 The data shows that RTGS transactions contracted 13.5% in the first 28 days of May compared with
the figure for April, while NEFT transactions contracted 14.4% over the same period.
Cheque transactions were down 17% and card transactions were down 10.7%. The card transaction
data was obtained from four banks, and so may not indicate the exact picture of the industry, but it is
still representative, according to banking experts.
The only two areas that witnessed growth in the value of transactions were those conducted
using the Unified Payments Interface (UPI) and e-wallets. While the former grew 11.4%, the
latter grew 2.2%. However, since the absolute value of these transactions is so small, the two
instruments together make up only 0.05% of all non-cash transactions.
Month on month, we have been witnessing 100% growth consistently since demonetization. The
digital payments peaked in March and post that, with remonetisation taking place, of course the cash
transactions have increased.

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GS II: BILATERAL INDIA-BANGLADESH
Plan for Indian SEZs in Bangladesh hits bump

Indias plan to step up investments in Bangladesh by setting up three mega Special Economic
Zones (SEZ) exclusively for Indian companies in the latters territory has hit a major hurdle.
Citing constraints, including inadequate infrastructure and lack of uninterrupted power
supply at Mongla, Bheramara and Mirsarai the sites in Bangladesh for the proposed Indian
SEZs, representatives of India Inc. told the Centre at a meeting that it will not be commercially
viable to set up SEZs in the locations.
For better connectivity and business prospects, they sought alternative sites close to the Chittagong
Port and the capital city of Dhaka similar to those been allocated by Bangladesh for Chinese
SEZs.
Expressing reluctance in taking forward the proposal, India Inc. also referred to ambiguity and
uncertainty regarding incentives offered by the Bangladesh Government to develop the SEZs,
the sources said.
To lure investments into its SEZs, Bangladesh had offered incentives, including exemption from
income tax, VAT, customs duty and stamp duty, removal of ceiling on FDI, full repatriation of
capital and dividend, no curbs on issuance of work permits as well as resident visas and citizenship
for investments over a certain limit.
India Inc. wanted greater clarity on some of the incentives as well as an assurance that they will
be continued even if there was a regime change in Bangladesh.
India and Bangladesh had inked a Memorandum of Understanding (MoU) in June 2015
during Prime Minister Narendra Modis visit to Bangladesh for cooperation on establishing
Indian SEZs in Bangladesh.
The plan was to develop Indian SEZs at Mirsarai (1,005 acres), Bheramara (about 480 acres) and
Mongla (200 acres). The construction of these SEZs and Indian investment in the zones were to be
facilitated through concessional Line of Credit extended by India to Bangladesh.

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 The Centre had promised to address the concerns of India Inc. by taking them up with the
Bangladesh Government in June-end or early July and asked Indian companies not to reject
Bangladeshs offer of land and other incentives to build Indian SEZs there.
The government officials said the proposed sites are close to a port (Mongla) and not far from the
Petrapole-Benapole Integrated Check Post.
Besides, they said, India was considering a supply of about 5,000 MW (including 1,320 MW
Rampal power plant that was not far from these sites) of power to Bangladesh.
In the meantime, the Centre had asked consultancy firm PwC that had carried out a
preliminary study on the topic to incorporate the suggestions of India Inc. in its report and
give a clearer assessment of the potential gains for Indian companies from the incentives,
including tax benefits, offered by Bangladesh for setting up SEZs.

GS III: S&T - SPACE

NASA to fly Solar Probe Plus right into suns atmosphere in 2018

NASA has announced a red-hot mission on May 31, 2017 scheduled to launch in summer 2018.
The Solar Probe Plus will fly within 6.4 million km of the suns surface right into the solar
atmosphere.
It will be subjected to brutal heat and radiation like no other man-made structure before.
The purpose is to study the suns outer atmosphere and better understand how stars like ours
work.

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 EDITORIALS

1 JUNE 2017

Politics and propriety

On Uma Bharti's continuance as Minister

The framing of charges against Uma Bharti makes her continuance as Minister untenable

With the Supreme Court invoking its extraordinary powers under Article 142 of the Constitution
to pass decrees and orders to ensure complete justice in the case relating to the demolition of
the Babri Masjid, and reviving the criminal conspiracy charges against senior BJP leaders L.K.
Advani, Murli Manohar Joshi, Uma Bharti and Vinay Katiyar, the CBI Special Court in Lucknow
could not but have framed charges against them. Over the last 24 years, poor investigation and
weak prosecution combined with inordinate judicial delays ensured they did not have to stand trial
for making provocative speeches that allegedly incited kar sevaks to demolish the masjid. With the
Supreme Court ordering this case to be clubbed with the one involving the actual demolition by
unnamed kar sevaks, and directing day-to-day trials, there is hope that the years of delay are over.
India has a poor record in finding speedy judicial resolution in instances of mob violence and communal
riots; in that sense, the Babri Masjid cases are perhaps unexceptional. But given the historical importance
of the case, and the impact of the demolition on communal harmony, it is vital to see them through to
the end.

Both Mr. Advani and Mr. Joshi are in the twilight of their political careers, wielding little power or
influence in the BJP. Ms. Bharti is, however, a Union Minister, and the Narendra Modi government
cannot pretend that the development has no bearing on her continuance in the Council of Ministers. The
BJP has tended to underplay the significance of the case on the ground that it is political in nature. But
this simply does not wash as the revival of criminal conspiracy charges against them was done at the
instance of the Supreme Court. In opposition, the BJP had been quick to demand the resignation of
ministers for much less than being chargesheeted. The argument that the standards of propriety that apply
in corruption cases are different from those that apply in a criminal case of this nature is absurd. Even by
the lax standards of todays political morality, it is important to draw the line somewhere and
framing of charges is a good stage given that it is a formal document drawn up by a court of law.
Rather than defend Ms. Uma Bharti, the Modi government would do well to consider the example set by
none other than Mr. Advani himself, who resigned as a Member of Parliament in 1996 after he was
implicated in the Jain hawala case, in which the court later held that there was no material to
frame charges against him. For a government that makes much of standing for probity in public life,
the application of different standards to one of its own is bound to damage its image. Ms. Bhartis guilt
or innocence is for the courts to establish. Political propriety demands that she be shown the door.

Uncertain times
On the security situation in Afghanistan

The major terror strike in Kabul underlines a rapidly deteriorating security situation

Afghanistan is no stranger to terror attacks. Even so, the repeated strikes in the most fortified areas with
mounting casualties demonstrate a steadily deteriorating security situation. In April, the Taliban
had targeted an army base in Mazar-e-Sharif, killing over 100 soldiers. Now, at least 90 people,
mostly civilians, have been massacred in a suspected truck bomb blast in Kabul. The Wazir Akbar
Khan area where the blast occurred is one of the most secured places in the city, given its proximity to
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the presidential palace and embassies, including Indias. Still, a terrorist managed to drive in with a
vehicle full of explosives and detonate it. It is not immediately clear who is behind the attack. The
Taliban have denied any role, saying they dont kill civilians. Afghanistans jihadist landscape has
been diversified. There are multiple Taliban splinter groups that do not accept the current
leadership of the insurgency. And then there is the Islamic State, which operates from eastern
Afghanistan and had targeted civilians in the recent past. Amid all this, the Afghan government is
struggling to win a modicum of public confidence that it can turn things around. Since most American
troops withdrew from Afghanistan in 2014, terror attacks have been on the rise. Last year was
particularly bloody, with over 11,500 people having been killed or injured even as the Afghan
governments writ shrunk to just over half of the countrys 407 districts.

The problem has political, diplomatic and security dimensions. Politically, the government is seen to be
corrupt, incompetent, and unable to get its act together. Vice-President Abdul Rashid Dostum, who
faces allegations of sexual abuse, has fled the country. President Ashraf Ghani and Chief Executive
Abdullah Abdullah are reportedly not on the same page on key issues. Corruption is pervasive across
government departments, and Mr. Ghani is yet to begin delivering on his promise to streamline
governance. The diplomatic challenge before Mr. Ghani is to cut off the Talibans supplies from
abroad. It is an open secret that Pakistan is supporting the insurgency. There were reports
recently that Iran and Russia may also be arming them for geopolitical reasons. Unless the Taliban
are cut off from their external backers, Kabuls writ will remain circumscribed. The security challenge,
perhaps the most important one, is that the Afghan army, after years of relentless war, is demoralised.
Though Afghanistan has a 170,000-strong army, the main combat operations are overseen by a
small U.S.-trained contingent. They are stretched on the battlefield, given the challenges from different
militant groups. The question is, what is Mr. Ghanis government doing in the face of these challenges?
Do its international backers, including the U.S., have any plan to stabilise Afghanistan, and if so, what
priority do they accord it? As things stand, the country is at risk of sliding back to the chaos of the 1990s.

QUESTION BANK
(1 Question)

Answer questions in NOT MORE than 200 words each. Content of the answer is more
important than its length.
Links are provided for reference. You can also use the Internet fruitfully to further enhance and strengthen your
answers.

GS II : BILATERAL - INDIA- AFRICA

1. Indias cooperation with African nations is proposed to contrast Chinas approach. Elucidate.

http://www.thehindu.com/opinion/op-ed/this-time-for-africa/article18683972.ece

African Development Bank (AfDB) annual meet:

India-Africa engagement is getting stronger with the active involvement of political and business
leaders of both sides.
The annual meeting of the African Development Bank (AfDB) in 2017 in Gandhinagar, Gujarat,
demonstrated its confidence in recent achievements and future prospects of the Indian economy.
AfDB president Akinwumi Adesina called India a developing beacon for the rest of the world,
adding that the time was right for India and Africa to forge winning partnerships.

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 Third India-Africa Forum Summit
This conference came against the backdrop of the historic third India-Africa Forum Summit in
October 2015 when all 54 African nations had sent their representatives, 41 of them at the level
of head of state or government.
African governments have also been appreciative of Indian leaders unprecedented readiness to visit
Africa. In the past two years, the President, the Vice President and the Prime Minister have visited 16
African countries in the east, west, north and south.

Asia Africa Growth Corridor (AAGC)

Mr. Modi released a vision document on the Asia Africa Growth Corridor (AAGC). This study
was jointly produced by three research institutions of India and Japan.
It envisages closer engagement between India and Africa for sustainable and innovative
development, and will be anchored to four pillars: development and cooperation projects; quality
infrastructure and institutional connectivity; enhancing capacities and skills; and people-to-people
partnership.
The AAGC will accord priority to development projects in health and pharmaceuticals, agriculture
and agro-processing, disaster management, and skill enhancement. It will have special focus on the
following geographies: Africa, India and South Asia, Southeast Asia, East Asia and Oceania. This
study indicates a preference for turning the 21st century into an Asian-African century, and not just
an Asian century.
The idea of a growth corridor linking Asia and Africa stemmed from discussions between Japanese
Prime Minister Shinzo Abe and Mr. Modi in November 2016, in light of talks between the two
governments in earlier years.
Convinced of the rising importance of the Indo-Pacific region as the key driver for prosperity of the
world, the two leaders decided to seek synergy between Indias Act East Policy and Japans
Expanded Partnership for Quality Infrastructure.
This synergy would be reflected in better regional integration, improved connectivity and industrial
networks. The strategy encompasses India-Japan collaboration for accelerating development in
Africa together with other like-minded countries such as the United States, Germany, France and
probably the United Arab Emirates and Singapore.

Differences in approach
The very mention of the AAGC excited many observers. A few in the media asked experts whether
this would be Indias answer to Chinas One Belt One Road.
The honest answer is in the negative as the approaches of India and China towards Africa are
essentially different.
China concentrates on infrastructure and cheque-book diplomacy, whereas India promotes a broader
spectrum of cooperation projects and programmes focussed on the development of Africas human
resources.
China goes solo, while India is desirous of working with other willing nations to assist Africa as per
the latters priorities.
Besides, while committed to a voluntary partnership with Africa, India is not prescriptive. This
enlightened approach offers limitless possibilities for India-Africa cooperation.
Initiate a few joint pilot projects involving the companies of India, Japan and a few African countries
such as Kenya, Ethiopia and Mozambique in identified areas such as health care, agriculture and blue
economy. Unless results become visible in the short term, questions may arise about the credibility of
their joint approach.

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