India to be high middle-income economy by 2047: World Bank

World Bank said the Goods and Services Tax (GST) and reforms push by the government will catapult the country to high middle-income economy in next 30 years.Recently India moved for the first time into the top 100 of World Bank’s Ease of Doing Business global rankings due to sustained business reforms over the past several years.

World Bank

The World Bank is an international financial institution that provides loans to countries of the world for capital programs.The World Bank was created at the 1944 Bretton Woods Conference, along with three other institutions, including the International Monetary Fund (IMF).It’s headquarter is in Washington, D.C., United States.It comprises two institutions- the International Bank for Reconstruction and Development (IBRD), and the International Development Association (IDA).The World Bank is a component of the World Bank Group.

World Bank Group

The World Bank is different from the World Bank Group, an extended family of five international organizations:
(a) International Bank for Reconstruction and Development (IBRD)
(b) International Development Association (IDA)
(c) International Finance Corporation (IFC)
(d) Multilateral Investment Guarantee Agency (MIGA)
(e) International Centre for Settlement of Investment Disputes (ICSID)

Important reports published by World Bank

Ease of doing BusinessWorld Development ReportGlobal Economic ProspectGlobal Financial Development ReportCommodity Markets Outlook

World bank classification of countries

The World Bank assigns the world's economies into four income groups — high, upper-middle, lower-middle, and low based on GNI (gross national income) per capita calculated.The units for this measure and for the thresholds is current US Dollars.In each country, factors such as income growth, inflation, exchange rates, and population change, influence GNI per capita taken in to account for classifications.Every year world bank updates the classifications.These Classifications are-
Low income < 1,005 GNI/Capita (current US$)
Lower-middle income = 1,006 - 3,955 GNI/Capita (current US$)
Upper-middle income = 3,956 - 12,235 GNI/Capita (current US$)
High-income> 12,235Currently India is in Lower-middle income category.

GNI (Gross National Income)

Total value of the final goods and services produced by Indians in India as well as in abroad during a particular period.In this we include resident and non-resident citizens of a country whereas income of foreigners who reside in India Excluded.

Topic- GS-3- Economic Development
GS-2- Important International institutions

Source- Economic Times

India and China oppose Fiji proposal to enhance Paris climate deal pledges

India and China are upset with a proposal on raising targets on emissions cuts presented by Fiji ahead of climate change negotiations under the Paris climate agreement which begins in the German city Bonn on November 6, 2017.Fiji wants all countries to upwardly revise their targets as the latest data shows that carbon emissions in 2016 was the highest ever.India said it will take it up at G-77 plus China meeting on November 6, 2017 in Bonn.

India’s policies to meet Paris climate goal

India’s installed solar capacity has increased three-fold to 13.4 Gigawatts (GW) since the Paris deal was signed in 2015.Renewable including hydro and wind has become a sunshine sector for India with the installed capacity of over 58 GW by end of last fiscal.Around 59% of the total electricity generated in India is powered by coal. Despite that, India is on track to meet its target of generating 40% of the energy from renewable sources by 2030.India to meet its target of reducing emission to GDP ratio called emission intensity by 33% by 2030 of the 2005 level.By 2016, the emission intensity reduction recorded was 18%.

Issue related to Paris Climate deal

Pre-2020 Agenda: The developing world will seek a status report from the rich nations on their promise to mobilise US $100 billion a year from 2020 for rest of the world to fight climate change and to enhance emission reduction targets.Facilitative Dialogue 2018: This will thresh out key issues such as a transparent mechanism to review targets under the Paris agreement, when the targets need to be enhanced and how.Finance: Finance has been a bone of contention between the developed and the developing world with rich nations not willing to provide access to technology to address climate change.

Group of 77 (G77)

The Group of 77 (G77) at the United Nations is a coalition ofdeveloping nations, designed to promote its members' collective economic interests and create an enhanced joint negotiating capacity in the United Nations.There were 77 founding members of the organization, but by November 2013 the organization had since expanded to 134-member countries.Since China participates in the G77 but does not consider itself to be a member, all official statements are issued in the name of The Group of 77 and China.

Topic- GS-3- Environment

Source- Hindustan Times

IAF, DRDO successfully test indigenous ‘glide’ bomb

Indigenously developed light weight ‘Glide’ bomb has been successfully tested in Chandipur in Odisha.The bomb ‘SAAW (Smart Anti Airfield Weapon)’ was dropped from an Indian Air Force aircraft at the Integrated Test Range (ITR) in Chandipur.The guided bomb released from the aircraft and guided through precision navigation system, reached the targets at greater than 70 km range, with high accuracies.The guided bomb is developed by the Research Centre Imarat (RCI), Defence Research and Development Organisation (DRDO), along with other laboratories of the DRDO and the Indian Air Force.

Topic- GS-3- Defence, Achievements of Indians in science & technology; indigenization of technology and developing new technology

Source- Hindustan Times

Balijatra festival begins in Cuttack

Balijatra literally means A Voyage to Bali.This festival is held in Odisha in the city of Cuttack at Gadagadia Ghata of the Mahanadi river.The festival is celebrated to mark the day when ancient Sadhabas (Oriya mariners) would set sail to distant lands of Bali, as well as Java, Sumatra, Borneo (all in Indonesia), and Sri Lanka for trade and cultural expansion.They sailed in large vessels called Boitas.

Topic- GS-1- Indian Culture

Source- Wiki

ICIJ (International Consortium of Investigative Journalists) releases Paradise papers

International Consortium of Investigative Journalists (ICIJ) released 'The Paradise Papers'.'The Paradise Papers' pertains to global investigation that reveals the offshore activities of some of the world’s most powerful people and companies.The ICIJ and 95 media partners explored 13.4 million leaked files of offshore law firms and the company registries in some of the world’s most secretive countries.Among 180 countries represented in the data. India ranks 19th in terms of number of names revealed.A total of 714 Indian names figure in the leaked data.

Is it illegal to set up offshore companies?

Not necessarilyIndia has double-taxation avoidance agreements (DTAAs) with several countries with lower tax rates than its own.So overseas corporate bodies (OCBs) incorporated in such countries can use their tax residency certificates (TRC) to enjoy the tax benefits available legally.

 Different law related to taxes in different countries

Laws specifying general anti-avoidance rule (GAAR) are in force in countries like the UK, Canada, Australia, New Zealand, South Africa and Hong Kong.There is FATCA (Foreign Account Tax Compliance Act) in the US.

Topic- GS-2- Indian Economy and issues. GS-3- Internal issues.

Source- Indian Express

Hotspots of rattan flora species found in Western Ghats

Scientists have discovered that non-protected areas near the Agastyamalai Biosphere Reserve, Silent Valley-Mukurthi National Parks and Coorg-Wayanad in the Western Ghats are hotspots of rattan or cane (light, flexible climbing palms) species.More than half a million people are directly employed in harvesting and processing rattan in Southeast Asia, including India.

Topic- GS-3- Biodiversity

Source- The Hindu

China unveils massive island-building vessel

China has unveiled a massive ship described as a "magic island maker" that is Asia's largest dredging vessel.It is named as ‘Tian Kun Hao’.The ship, capable of building artificial islands of the sort the country has constructed in the contested South China Sea.

Topic- GS-3- International Relation

Source- Times of India