- ECONOMY
PRIVATE SECTOR BORROWINGS TO RISE ON CAPEX PUSH – PATRA
- Revival in Capital Expenditure (Capex):
- The private corporate sector is expected to see a rise in net borrowing requirements due to a revival in the capex cycle.
- This indicates an anticipated increase in investments in infrastructure, machinery, and other capital assets.
- Role of Households: Households are expected to rebuild their savings and continue to be the top net lenders to the rest of the economy.
- This suggests that household savings will play a crucial role in meeting the financing needs of the private sector.
- External Resources: Alongside household savings, external resources will also be significant in meeting the financing requirements.
- As the economy’s productive capacity rises, its ability to absorb foreign resources will expand, potentially leading to shifts in the volume and composition of external financing.
- External Debt Sustainability: Despite the increased role of foreign capital, maintaining external debt sustainability will remain a policy priority for the RBI.
- This indicates a cautious approach to managing external borrowings to avoid potential debt crises.
2. INTERNATIONAL
XI HOSTS AFRICAN LEADERS AT GRAND SUMMIT IN BEIJING
- Chinese President Xi Jinping hosted a banquet for over two dozen African leaders in Beijing, marking the city’s largest summit in years.
- Focus Areas: Promises of cooperation in infrastructure, energy, and education.
- Economic Ties: China is Africa’s largest trading partner, focusing on natural resources like copper, gold, lithium, and rare earth minerals.
- Financial Support: China has provided billions in loans to African countries. Attendance: 25 African leaders have either arrived in Beijing or confirmed their attendance at the China-Africa forum.
- Nigeria: Xi Jinping met with Nigerian President Bola Tinubu, emphasizing greater cooperation in investment, trade, infrastructure, and mineral resources.
- Zimbabwe: Xi also met with Zimbabwean President Emmerson Mnangagwa, promising support against U.S. sanctions and cooperation in various sectors
3. SECURITY ISSUES
CENTRE, TRIPURA SIGN PEACE ACCORD WITH INSURGENT GROUPS IN THE STATE
- Insurgent Groups:
- National Liberation Front of Tripura (NLFT): An insurgent group that has been active in Tripura, seeking an independent Tripura.
- All Tripura Tiger Force (ATTF): Another insurgent group with similar objectives, involved in armed conflict in the state.
- Conflict Duration:
- The insurgency in Tripura has been ongoing for approximately 35 years, causing significant disruption and violence in the region.
- Key Provisions of the Peace Accord:
- Memorandum of Settlement: Parties Involved: The agreement was signed between the Government of India, Government of Tripura, NLFT, and ATTF.
- Commitment to Peace: Both NLFT and ATTF have agreed to abjure violence, lay down arms, and disband their armed organizations.
- Integration into Mainstream Society: Armed Cadres: More than 328 armed cadres from NLFT and ATTF will give up violence and join mainstream society.
- Democratic Participation: The cadres have agreed to participate in the peaceful democratic process and maintain the integrity of the country.
- Development Initiatives: Special Package: The Centre has approved a special package of ₹250 crore for the overall development of the tribal population in Tripura.
- Focus on Development: The government aims to address the root causes of insurgency by promoting development and preserving the culture, languages, and identity of the tribal groups in the northeast. This is the 12th peace agreement for the northeast and the third related to Tripura in the past ten years.
- Impact on Insurgents: Approximately 10,000 insurgents have joined the mainstream through these agreements, preventing the loss of thousands of innocent lives
4. NATIONAL
ANIIDCO
- The Andaman and Nicobar Islands Integrated Development Corporation (ANIIDCO) has recently come under scrutiny after being granted permission to undertake a ₹72,000 crore mega infrastructure project in Great Nicobar.
- This project includes the construction of a trans-shipment port, a greenfield airport, a tourism and township project, and a solar and gasbased power plant.
- Background of ANIIDCO: Incorporation and Objectives:
- Incorporation Date: ANIIDCO was incorporated on June 28, 1988, under the Companies Act.
- Objective: The corporation aims to develop and commercially exploit natural resources for balanced and environmentally friendly development of the territory.
- Main Activities: Trading: Petroleum products, Indian-made foreign liquor, and milk.
- Tourism: Managing tourism resorts and infrastructure development.
- Fisheries: Infrastructure development for fisheries.
- Financial Performance: Annual Turnover: Average of ₹370 crore over the last three financial years.
- Profit: Average of ₹35 crore over the same period.
5. BILATERAL
PM TAKES AIM AT CHINA IN BRUNEI SAYS INDIA NOT FOR EXPANSIONISM
- Prime Minister Narendra Modi’s visit to Brunei and his remarks on “development, not expansionism” are significant in the context of regional geopolitics, particularly concerning the South China Sea and the Indo-Pacific region.
- Remarks on Expansionism: § Targeting China: PM Modi’s comments on supporting development over expansionism are seen as a veiled criticism of China’s assertive moves in the South China Sea and broader Indo-Pacific region.
- ASEAN Centrality: Emphasizing ASEAN’s central role in regional security and cooperation aligns with India’s Act East Policy and IndoPacific Vision.
- Bilateral Talks and Agreements: Space Cooperation: Renewal of the cooperation agreement on space, with Brunei continuing to host ISRO’s Telemetry Tracking and Command station.
- Defence Cooperation: Discussions on strengthening defence ties, which is crucial given Brunei’s strategic location in the ASEAN region.
- LNG Supplies: Exploration of long-term cooperation in LNG supplies, especially as India shifts its oil import preferences.
- Strategic Statements: Code of Conduct: Call for the finalization of a ‘Code of Conduct’ for the South China Sea, urging peaceful resolution of disputes in accordance with international law, particularly UNCLOS 1982.
- Freedom of Movement: Support for freedom of movement in the Indo-Pacific region, which is a critical issue given the territorial disputes in the South China Sea.
- Economic Ties: Trade Figures: China-Brunei bilateral trade stands at approximately $2.6 billion, while India-Brunei trade was around $286.20 million last year. This highlights the economic influence China has in Brunei compared to India.
- Investment: China is Brunei’s largest trading partner and foreign investor, indicating strong economic ties
ONE LINER
- The 54th GST council meeting was held in Delhi. Reduction of GST tax on cancer drugs from 12% to 15%.
- The Annual Conference of the East India Economic Organization was held in Vladivostok, Russia. Russia plans to built a Nuclear Power Plant on the moon
