Daily Current Affairs for UPSC Civil Services Exam – 29 July 2020

Daily Current Affairs for UPSC Civil Services Exam – 29 July 2020

In Today’s News:

  1. RIC and its significance.
  2. The government of India notifies 100% FDI in Air India for NRIs.

1. RIC and its significance

News Summary

Though there were calls for a westward shift in India’s foreign policy, India’s engagement with Russia and China is also important.

Prelims GS – International Relations

RIC Grouping:(Russia-India-China)

Refer to the Prelims content of RIC on 19th June 2020.

Mini Insights

Mains GS2 – International Relations

Significance of RIC and its relevance to India:
  • When RIC commenced in the early 2000s, Russia-India-China were positioning themselves for a transition from unipolar to Multipolar world order. 
  • All three countries considered their relationship with the United States as an essential part to fulfil their global ambitions.
  • Therefore, RIC was not an anti-U.S. partnership.
  • Initial stages of RIC boosted relations of India with Russia and China.
  • The political, defence, and energy pillars of the India-Russia strategic partnership were enhanced through RIC.
  • India’s relation with China also increased through RIC. The 2003 decision to bring a political approach to the boundary dispute and to develop other cooperation, encouraged a multi-sectoral surge in relations with China.
  • India is a member of the Shanghai Cooperation Organization in which Russia and China are very important members.
  • These are all some examples of how India is cooperating multilaterally with Russia and China.
  • The bilateral arms of the India-Russia-China triangle will, therefore, remain important.

2. The government of India notifies 100% FDI in Air India for NRIs

News Summary

The government of India has notified amendments to Foreign Exchange Management rules and has allowed NRIs for 100% foreign direct investment (FDI) in Air India. Now, NRIs have been given permission for 100% FDI in Air India through Automatic Route.

Prelims GS – Economic Development

FDI:
  • Foreign Direct Investment takes place when an investor establishes foreign business operations or acquires foreign business assets, and establishes ownership or controls interest in a foreign company.
  • FDI brings in a long term capital for the economy.
  • FDI is not only bringing money but also knowledge, skills, and technology.
Routes of FDI:
  • Automatic Route: Under the Automatic Route, the non-resident investor or the Indian company does not require any approval from the Government of India for the investment.
  • Government Route: Under the Government Route, prior to investment, approval from the Government of India is required. Proposals for foreign direct investment under Government route, are considered by respective Administrative Ministries/Departments.

Mini Insights

Mains GS3 – Economic Development

Benefits of FDI:
  • Increased Employment and Economic Growth
  • Human Resource Development
  • Exchange Rate Stability
  • Development of Backward Areas
  • Increase in Exports
  • Improved Capital Flow
  • Creation of a Competitive Market
  • Provision of Finance and Technology
  • Stimulation of Economic Development

Click here or visit the Invest India website and know more about these points in detail.

 

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