- BILATERAL
INDIA, CANAFA EXPEL DIPLOMATS AS NIJJAR CASE ROW INTENSIFIES
- Hardeep Singh Nijjar, a pro-Khalistan figure, was killed in British Columbia in June 2023. Canadian Prime Minister Justin Trudeau accused “agents of the Indian government” of involvement.
- Previous Actions:Following the killing, India froze visa facilities for Canadian citizens and withdrew 41 Canadian diplomats from India in October.
- Expulsions:India expelled six Canadian diplomats in response to Canada’s expulsion of an Indian diplomat linked to the killing of Hardeep Singh Nijjar. Canada also expelled six Indian officials, including the High Commissioner.
- Downgrading of Diplomatic Presence:India recalled its High Commissioner from Canada and other senior diplomats.
- “Persons of Interest”:Canada declared several Indian officials as “persons of interest” in the Nijjar killing.
- India’s Response:India called the Canadian allegations “preposterous imputations”and linked them to Canadian domestic politics. They also said they reserve the right to take further action
2. ECONOMICS
RBI’S PRICE WORRIES MAY BE WARRANTED BUT GROWTH CONCERNS ARE EMERGING
- The Reserve Bank of India (RBI) faces a dilemma balancing its fight against inflation with concerns about slowing economic growth. The Monetary Policy Committee (MPC) has decided to hold interest rates steady, prioritizing inflation control, but emerging signs of economic weakness may force a change in approach.
- Dilemma: The RBI is caught between the need to control inflation and the need to support economic growth. Raising interest rates can help curb inflation but may further dampen economic activity. Cutting rates could stimulate growth but might exacerbate inflationary pressures.
- Potential Outcomes: Delayed Rate Cut:If inflation remains a concern, the RBI may postpone any rate cuts until there are clearer signs of sustained disinflation. This could mean waiting until February or later.
- Earlier Rate Cut:If economic growth weakens significantly, the RBI may be forced to consider rate cuts sooner, even if inflation remains slightly above target. This would prioritize supporting growth over achieving the 4% inflation target in the short term.
- Data-Dependent Approach:The RBI is likely to maintain a data dependent approach, closely monitoring both inflation and growth indicators before making any policy decisions. The next MPC meeting in December will be crucial in determining the future direction of monetary policy.
- Current Situation: Inflation Concerns:While headline inflation dipped below the RBI’s 4% target in July and August, the MPC expects inflation to rise again, driven by factors like increasing food and vegetable prices, a bottoming out of core inflation, and rising global oil and metal prices. The MPC has maintained its inflation projection for 2024-25 at 4.5%.
- Growth Concerns:Despite the RBI’s optimistic 7.2% GDP growth projection for 2024-25, there are signs of a slowdown in economic activity. Weaker urban consumption (reflected in declining car sales) and a contraction in industrial output in August point to potential headwinds.
- Global Context:While the RBI emphasizes its focus on domestic factors, global trends, such as potential interest rate cuts by the European Central Bank and the US Federal Reserve, could influence its decisions.
- Policy Stance:The MPC has adopted a “neutral” stance, indicating a willingness to adjust policy based on evolving data. However, its commitment to bringing inflation durably down to 4% suggests a reluctance to cut rates prematurely.
3. BILATERAL
INDIA, RUSSIA DISCUSS TRAINING OF SAILORS FOR POLAR NAVIGATION, DEVELOPMENT OF JOINT PROJECTS
- India and Russia are exploring closer cooperation in utilizing the Northern Sea Route (NSR) for cargo transport.
- Focus on NSR:The two countries held their first working group meeting on NSR cooperation, indicating a growing interest in this Arctic shipping route.
- Cargo Transit:Discussions focused on targets for Indian-Russian cargo transit via the NSR, suggesting a desire to increase trade using this route.
- Training and Shipbuilding:Potential training of Indian sailors for polar navigation and joint projects in Arctic shipbuildingwere also discussed, highlighting the need for skilled personnel and infrastructure development. Memorandum of Understanding (MoU):A draft MoU between the two governments is being prepared to formalize cooperation on NSR cargo shipping.
- Russia’s Strategic Goal:Russia aims to establish the NSR as a major shipping route connecting Europe, Russia, and the Asia-Pacific region. Rosatom, Russia’s state nuclear corporation, is the designated infrastructure operator for the NSR.
- Greater Eurasian Space:The NSR cooperation aligns with the broader vision of a “greater Eurasian space” with enhanced transport corridors.
- Increased Infrastructure Capacity:Both countries are keen on expanding logistics links and increasing infrastructure capacity to support increased trade flow via the NSR.
4. SCIENCE AND TECHNOLOGY
BANKS MUST RIDE ON AI, BIGTECH ADVANTAGES, NOT THE OTHER WAY
- RBI Governor Shaktikanta Das cautioned against the over-reliance of banks on AI and machine learning, emphasizing the need for banks to manage the associated risks effectively. While acknowledging the benefits of these technologies, he highlighted potential financial stability risks and the importance of banks maintaining control.
- Das’s Concerns: Concentration Risks:A few tech providers dominating the AI/ML market could create systemic risks, as failures or disruptions in their systems could impact the entire financial sector.
- Cybersecurity Vulnerabilities:Increased use of AI makes banks more susceptible to cyberattacks and data breaches.
- Opacity of AI:The difficulty in auditing or interpreting AI algorithms can lead to unpredictable market consequences.
- Big Tech Dominance:Banks need to leverage the advantages of AI and Big Tech without becoming overly reliant on them, ensuring they maintain control and avoid being dominated
5. INTERNATIONAL
ATTACKS AGAINST UN PEACEKEEPERS MAY BE WAR CRIMES, GUTERRES WARNS ISRAEL
- UN Secretary-General António Guterres’s warning that attacks against UN peacekeepers may constitute war crimes underscores a critical principle of international law.
- Recent attacks on UNIFIL (UN Interim Force in Lebanon) peacekeepers have raised serious concerns about their safety and security.
- These attacks occur amidst escalating hostilities between Israel and Hezbollah in southern Lebanon.
- The UN has condemned these attacks and called for accountability.
- Guterres’s Warning: Attacks against peacekeepers violate international law and may be classified as war crimes.
- This warning emphasizes the gravity of such attacks and the potential for prosecution. Legal Basis:
- 1949 Geneva Conventions:These conventions provide protections for humanitarian personnel and those involved in peacekeeping operations.
- 1994 Convention on the Safety of United Nations and Associated Personnel:This convention specifically addresses crimes against UN personnel, including peacekeepers. It defines attacks against UN personnel as a serious crime and calls for states to cooperate in bringing perpetrators to justice.
- Rome Statute of the International Criminal Court (ICC):The Rome Statute defines war crimes, which can include attacks against peacekeepers in certain circumstances. The ICC has jurisdiction to prosecute such crimes if national authorities are unwilling or unable to do so.
ONE LINER
- XDLINX Space labs to launch five multi-functional satellites by 2025
- TNAPEx has filed an application seeking Geographical Indication (GI) Tag for three food products from Tamil Nadu – the Ramanathapuram panagarkandu, kovilpatti seeval, and Ramanathapuram pattari karuvadu.
BANKING
- Who was appointed as the Chief of the National Crime Records Bureau?
Ans: Alok Ranjan
2. What award did Odisha swimmer Pratyasa Ray receive for her achievements
Ans: Ekalabya Puraskar
