DAILY CURRENT AFFAIRS IAS | UPSC Prelims and Mains Exam –17th June 2023
Archives (PRELIMS & MAINS Focus) Lines of Credit (LoCs) Syllabus Prelims –Economy Context: Recent reports suggest that India’s future Lines of Credit (LoCs) to Africa could focus on defence exports to meet the requirements of the continent. About Lines of Credit (LoCs):- IMAGE SOURCE: INVESTOPEDIA It is a credit facility extended by a bank or any other financial institution that enables the customer to draw the maximum loan amount. Lender: it can be given by a bank or any other financial institution. Borrower: it can be given to a government, business or individual customer. Time limit: the set borrowing limit can be tapped into at any time. Transaction Limit: the borrower can take money out until the maximum limit is reached. Usage in international relations: it is a soft loan provided on concessional interest rates to developing countries. It is not a grant and has to be repaid by the borrowing government. Types of credit lines: personal, business, and home equity, among others. Advantages: it has built-in flexibility, which is its main advantage. Borrowers can request a certain amount, but they do not have to use it all. They can tailor their spending from the LOC to their needs. They owe interest only on the amount that they draw, not on the entire credit line. Disadvantages: high-interest rates, penalties for late payments, and the potential to overspend. India-Africa Relations:- IMAGE SOURCE: YourStory Historical Ties India’s trade relations with Africa date back several centuries. (UPSC CSE: India-Africa: Challenges & Way Ahead) The presence of Indians in East Africa is documented in the ‘Periplus of the Erythraean Sea’ or Guidebook of the Red Sea by an ancient Greek author written in 60 AD. Mahatma Gandhi: he began his political career in South Africa. (UPSC CSE: India and Mahatma Gandhi) Non-Alignment Movement (NAM): India was a forerunner as a champion of the interests of the developing countries from Africa among other third-world countries. (UPSC CSE: NAM) Importance of Africa Africa is home to over half a dozen of the fastest-growing countries in the world. African continent has a population of over one billion with a combined GDP of 2.5 trillion dollars making it a huge potential market. Africa is a resource-rich nation dominated by commodities like crude oil, gas, pulses and lentils, leather, gold and other metals, all of which India lack in sufficient quantities. India is seeking diversification of its oil supplies away from the Middle East and Africa can play an important role in India’s energy matrix. India’s Initiatives in Africa India Africa Forum Summit ) is the official platform for African-Indian relations. It was launched in 2008. India is investing in capacity building providing more than $1 billion in technical assistance and training to personnel under the Indian Technical and Economic Cooperation (ITEC) program. ITEC: is the leading capacity-building platform of the Ministry Of External Affairs. Instituted in 1964. Have trained more than 200,000 officials from 160+ countries in both the civilian and the defence sectors. India has invested $100 million in the Pan-African E-Network. Objective: to bridge the digital divide in Africa, leveraging its strengths in information technology. Indian military academies offer training to military officers from a number of African states. Asian Africa Growth Corridor: jointly prepared by Indian and Japanese think tanks. The corridor will focus on Developing Cooperation Projects, Quality Infrastructure and Institutional Connectivity, skill enhancement, and People-to-People Partnerships. MUST READ: Credit in the Economy SOURCE: THE ECONOMIC TIMES PREVIOUS YEAR QUESTIONS Q.1) “Rapid Financing Instrument” and “Rapid Credit Facility” are related to the provisions of lending by which of the following: (2022) Asian Development Bank International Monetary Fund United Nations Environment Programme Finance Initiative World Bank Q.2) With reference to the “G20 Common Framework”, consider the following statements: (2022) It is an initiative endorsed by the G20 together with the Paris Club. It is an initiative to support Low-Income Countries with unsustainable debt. Which of the statements given above is/are correct? 1 only 2 only Both 1 and 2 Neither 1 nor 2 Cyclone Biparjoy Syllabus Prelims –Geography Context: Heavy to extremely heavy rainfall was predicted over Kutch, north Gujarat, and south Rajasthan regions recently as Cyclone Biparjoy moved northeastwards. About Cyclonic Storm Biparjoy:- IMAGE SOURCE: AIR A deep depression over the southeast Arabian Sea intensified into a cyclonic storm Biparjoy. Origin: southeast Arabian Sea Naming: Bangladesh gave a tropical cyclone the name “Biparjoy,” which is Bengali for “calamity” or “disaster. (UPSC CSE: Naming of Cyclone) Cyclone: a low-pressure system that forms over warm waters. Usually, a high temperature anywhere means the existence of low-pressure air, and a low temperature means high-pressure wind. Frequency of Cyclones in the Arabian Sea Frequency: It has fewer cyclones compared to the Bay of Bengal. This is because the Bay of Bengal is warmer. Favorable Month: June Factors Influencing Cyclone Formation: Cyclones form due to low-pressure systems over warm waters. The Arabian Sea is getting warmer due to climate change, leading to an increase in cyclones. (UPSC CSE: More cyclones in the Arabian Sea) Tropical Cyclones Intense circular storm over warm oceans with low pressure. It brings high winds and heavy rain. Conditions for formation: Warm sea surface temperatures, anticlockwise rotation of low-level air, favourable atmospheric conditions. Tropical Cyclones in India:- Origin: Tropical cyclones striking India generally originate in the Bay of Bengal. Frequency: Cyclones occur in the months of May–June and October–November. MUST READ: Cyclones forecast SOURCE: AIR PREVIOUS YEAR QUESTIONS Q.1) Consider the following statements: (2022) High clouds primarily reflect solar radiation and cool the surface of the Earth. Low clouds have a high absorption of infrared radiation emanating from the Earth’s surface and thus cause a warming effect. Which of the statements given above is/are correct? 1 only 2 only Both 1 and 2 Neither 1 nor 2 Q.2) In the northern hemisphere, the longest day of the year normally occurs in the: (2022) First half of the month of June The second half of the month of June The first half of the month
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