TNPSC CURRENT AFFAIRS – 15.5.2024

1. SBI BECOMES FIRST TRADING CLEARING MEMBER BANK IN IIBX

• Implications: Facilitating Trades: As a TCM member, SBI can not only trade precious metals like gold and silver on the IIBX but also handle the clearing and settlement of these trades
• This dual role enhances efficiency by streamlining the process from transaction to final settlement
• Market Access: SBI’s membership in the IIBX allows it to offer direct access to the bullion market to its clients, which includes both buying and selling precious metals
• Boosting India’s Bullion Market:IIBX aims to make India a global hub for bullion trading
• By contributing to increased trading volume and liquidity in the market
• Enhancing Credibility: SBI’s involvement may boost confidence in the IIBX, encouraging other financial institutions to participate

2. MARKETS WILL BE LESS VOLATILE AFTER EVERY PHASE OF ELECTION

• Elections influence stock market fluctuations due to the uncertainty and speculation about potential policy changes. Here’s a concise overview of how this relationship works:
• Uncertainty and Speculation: The unpredictability of election outcomes and subsequent government policies lead to increased market volatility as investors speculate on potential impacts
• Policy Expectations: Investors adjust their portfolios based on the economic policies proposed by different political parties, affecting stock prices
• Investor Sentiment: Positive or negative sentiment towards potential election results can drive market rallies or declines
• Stability and Governance: Markets prefer the stability of a decisive government, as it suggests predictable economic management. Uncertainty about government formation can lead to market instability
• Market Adaptation: As election results become clearer, market volatility typically decreases as uncertainty diminishes
• Long-term Effects: Post-election, the stock market adjusts to the new government’s policies. Supportive policies can boost the market, while unfavorable ones might lead to declines

3. UN LINKED BODY DEFERS ACCREDICTATION OF NHRC INDIA FOR SECOND YEAR IN A ROW

• The issue surrounds the deferral of accreditation for India’s National Human Rights Commission (NHRC) by the Global Alliance of National Human Rights Institutions (GANHRI):
• Background of NHRC – Established under the Protection of Human Rights Act of 1993
• The NHRC of India has historically held an ‘A’ status since the inception of the accreditation process in 1999
• It was reaffirmed in 2006, 2011, and 2017 after a brief deferment in 2016
• Recent Developments – In May 2023, GANHRI deferred the NHRC’s accreditation for the second consecutive year
• A decision influenced by the Subcommittee on Accreditation’s (SCA) meeting
• This involved representatives from New Zealand, South Africa, Honduras, and Greece
• Reasons for Deferral: The deferment stems from several issues highlighted in previous reports and ongoing concerns: ◦ Lack of Transparency: Concerns over opaque processes in appointing NHRC members. ◦ Inappropriate Appointments: The engagement of police officers in human rights investigations.
• Inadequate Representation: Insufficient gender and minority representation within the NHRC.
• Impact of Deferral: This deferral affects India’s voting rights at the UN Human Rights Council and some General Assembly bodies.
• GANHRI’s Expectations
• The international body has requested structural changes and incorporation of suggestions which India found challenging to implement during its general election period
• Civil Society Concerns
• Prior to the 2023 deferment, various civil society groups and human rights activists had expressed apprehensions about India’s human rights practices, influencing GANHRI’s decision
• Composition Issue ◦ GANHRI criticized the NHRC for lack of diversity
• Noting particularly that it does not adequately represent the societal diversity
• With only one woman and insufficient representation from India’s largest minority religions in its top body • Future Actions
• Chabahar is a deep water port located in the Sistan-Baluchistan province of Iran
• The accreditation status of the NHRC is expected to be reviewed again in meetings scheduled for September 2023 or May 2024
• The outcomes may also depend on the actions of the new government formed post-elections in early June 2023  
• Particularly regarding the appointment of new members to the NHRC following the end of terms for key officials This situation places India’s NHRC in a critical position regarding its international standing and effectiveness in addressing human rights issues within the country

4. SILK COTTON TREE

• The Silk Cotton Tree (Bombax ceiba L.), locally known as the Semal tree, holds significant ecological and geographical importance, particularly in the forests of southern Rajasthan. Its importance:
• Ecological Role: Biodiversity Support: The Semal tree supports a diverse array of wildlife
• It provides nectar for birds like the Indian crested porcupine and Hanuman langurs, and its fluffy seed pods are used by birds like the golden-crowned sparrow to weave nests
• Insect Habitat: Its leaves serve as a feeding ground for larvae of the moth Bucculatrix crateracma
• While its spiked trunk offers nesting sites for rock bees, keeping predators like sloth bears at bay.
• Cultural and Economic Value: Tribal Utility: Various tribal communities, including the Garasia and Kathodi, rely on the tree for food, medicine, and raw materials
• Its wood is used to craft musical instruments and utensils.
• Agroforestry Potential: The Semal tree provides opportunities for agroforestry
• Contributing to the livelihoods of local communities through products like fodder and fuelwood
• Geographical Significance: Native Species: As a native species to India, the Semal tree is an integral part of the local flora, contributing to the region’s unique landscape and ecological balance
• Soil and Water Conservation: Like many large trees, it plays a role in water conservation and soil stability, which are crucial for the ecological health of the region.
• Conservation Challenges: Threat from Overexploitation: The tree is increasingly being cut down for use in Holi celebrations in Udaipur, leading to a significant decline in its population
• This practice not only violates several forest conservation laws but also threatens the tree’s survival in its native habitat
• Lack of Legal Protection: Despite its ecological importance, the Semal tree is not currently listed as a ‘rare, threatened, and endangered’ species, which limits the conservation priority and efforts it receives. The ongoing exploitation for cultural festivities and the lack of stringent conservation measures have put the Semal tree at risk, highlighting the need for increased awareness and protective actions to preserve this ecologically vital species

5. AT $101.74 BILLION CHINA REMAINED TOP IMPORT PARTNER FOR INDIA IN FY2024

• China retained its spot as top import partner for India in 2023-24
• With goods inflows increasing 3.29% (year-on-year) to $101.74 billion as opposed to an overall 5.66% decline in the country’s imports
• High-tech items such as telecom and smartphone parts, laptop and PCs, as well as industrial inputs such as plastic, iron and steel and chemicals contributed substantially to the imports
• Russia vaulted to the second spot among India’s top import sources, surpassing UAE and the U.S. in 2023-24 ◦ Imports from Russia rose 34% to $61.44 billion during the fiscal, comprising mostly oil

ONE LINER

1. The 7^th edition of joint military exercise Shakti between India and France is started in Meghalaya state Umroi district
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