Current Affairs for IAS Exams - 10 July 2017

::National::

India's labour reforms hailed by G20

• Acknowledging the steps being taken by India for sustainable and inclusive growth as well as support to global economy.
• The G20 has praised the initiatives in the country for promoting ease of doing business, start-up funding and labour reforms.
• In the financial sector, India is popularising a number of derivative instruments in exchanges or electronic trading platforms” as part of the measures to enhance resilience of its economy.
• It further said India is facilitating external commercial borrowings (ECBs) by start-ups to encourage innovation and promote ease of doing business, as part of the efforts being taken by the G20 members this year for maintaining momentum on structural reforms and sustainable growth.

Two drugs taken off the restrictive Schedule X of the Drugs and Comestics Rules

• Concerns regarding a build-up of resistance to antiviral drugs used to treat swine flu are surfacing, after two such drugs — Oseltamivir and Zanamivir — were taken off the restrictive Schedule X of the Drugs and Comestics Rules. 
• Now under Schedule H1, the drugs can be stocked by all chemists.
• Central health authorities have also advised doctors to prescribe the drugs based on strong symptoms, without opting for the swab test. Medical experts say these decisions could lead to misuse and eventually, severe drug resistance.
• Oseltamivir and Zanamivir are antiviral drugs that block the actions of influenza virus types A and B in the body. While Oseltamivir is available as tablets, Zanamivir comes in powder form.
• Drugs under Schedule X require three copies of prescription for the doctor, patient and chemist, and can be sold by a chemist who holds a special Schedule X licence. 
• Also, the chemist has to preserve the prescription copy for up to three years. In Schedule H1, only one copy of the prescription is required, and drugs in this category can be sold by all chemists.
• Till date this year, India has recorded over 11,700 H1N1 cases and 561 deaths.

Army is ready for the long haul in holding onto its position in the Dokalam 

• The Army is ready for the long haul in holding onto its position in the Dokalam area near the Bhutan tri-junction, notwithstanding China ratcheting up rhetoric against India, demanding pulling back of its troops.
• The soldiers deployed in the disputed area have pitched tents, in an indication that they are unlikely to retreat unless there was reciprocity from Chinese personnel in ending the face-off at an altitude of around 10,000 feet in the Sikkim section.
• A steady line of supplies is being maintained for the soldiers at the site, signalling that the Army is not going to wilt under any pressure from China. 
• At the same time, they sounded confident of finding a diplomatic solution to the dispute, citing resolution of border skirmishes in the past through diplomacy.
• Though China has been aggressively asserting that it was not ready for any “compromise” and that the “ball is in India’s court”, the view in the security establishment here is that there cannot be any unilateral approach in defusing the tension.
• Both the countries had agreed to a mechanism in 2012 to resolve border flare-ups through consultations at various levels.
• The mechanism has not worked so far in the current case as the standoff near the Bhutan trijunction, triggered by China’s attempt to build a road in the strategically important area, has dragged on for over three weeks.
• New Delhi has already conveyed to Beijing that such an action would represent a significant change of status quo with “serious” security implications for India. The road link could give China a major military advantage over India.
• Doka La is the Indian name for the region which Bhutan recognises as Dokalam, while China claims it as part of its Donglang region. 
• China and Bhutan are engaged in talks. India argues that since it is a tri-junction involving the three countries, it also has a say in the issue.

Curcumin when administered in a nanoparticle has several favourable properties

• Curcumin, the basic ingredient of turmeric, when administered in a nanoparticle formulation has several favourable properties in the treatment of tuberculosis in mice, researchers have found.
• Nanoparticle curcumin to be five times more bioavailable in mice, than regular curcumin, and was able to drastically reduce liver toxicity induced by TB drug isoniazid.
• More importantly, treatment of TB with isoniazid along with 200 nanometre curcumin nanoparticles led to “dramatically reduced” risk of disease reactivation and reinfection.
• Treatment with anti-tuberculosis drugs takes about six-nine months in the case of drug-sensitive TB and 12-24 months for drug-resistant TB. 
• Besides improper use, the long duration to complete treatment substantially increases the risk of TB bacteria developing resistance.
• Because of the increased bioavailability of curcumin, the duration of treatment to achieve complete eradication of the bacteria is reduced significantly. 
• Quite often, patients stop taking anti-TB drugs for a few days due to liver toxicity. Since the addition of curcumin reduces liver toxicity, there can be better treatment adherence and lesser risk of drug resistance emerging.
• Curcumin blocks the Kv1.3 potassium channel and prevents apoptosis, or cell death, of T cells that come up with an immune response. 
• As a result, the protective, long-lasting memory cells called the central memory T cells get enhanced.
• Mice, which were treated only with isoniazid, displayed increased susceptibility to re-infection since the drug dampens the immune system. 
• Mice treated with curcumin nanoparticles and isoniazid were able to clear the bacteria at an accelerated rate in both the lungs and spleen.

Ahmedabad has been declared India’s first World Heritage City

• The Walled City of Ahmedabad, founded by Sultan Ahmed Shah in the 15th century, has been declared India’s first World Heritage City.
• The World Heritage Committee (WHC) of UNESCO made the announcement late on Saturday night following a meeting in Poland’s Krakwo. 
• The 5.5 km walled city area with an approximate population of four lakh, living in century-old wooden residences in around 600 pol s or neighbourhoods, is regarded as a living heritage. The UNESCO had preferred Ahmedabad over Delhi and Mumbai.
• It has now joined the privileged club of heritage cities like Paris, Cairo, Edinburgh and two cities in the subcontinent, Bhaktpur in Nepal and Galle in Sri Lanka. 
• According to Ahmedabad Municipal Commissioner Mukesh Kumar, there are 2,600 heritage sites and over two dozen ASI protected monuments and sites in the walled city. The city had figured in UNESCO’s tentative list in 2011.
• The civic body and the State authorities expect a huge boost to tourism after the UNESCO’s declaration.

::International::

A unique Norwegian archipelago in the Barents Sea

• On the face of it, a relentless battle between the European Union and Norway in a remote part of the Arctic is about snow crabs.
• But the real fight may go beyond who gets to catch the modest crustaceans around Svalbard, a unique Norwegian archipelago in the Barents Sea.
• What is really at stake is oil, some experts say, and a coming race for the commodity of which there is a lot in the polar region. 
• Norway, which is not a member of the EU, has slammed Brussels for authorising European vessels from mainly Baltic nations to fish for crabs in the Svalbard area, saying it violates its national sovereignty.
• A Latvian ship has already paid the price. In January, a ship called ‘The Senator’ was intercepted by Norwegian coast guards while crab fishing around Svalbard, and recently received a hefty fine. 
• The EU and Norway’s conflicting interpretations of the 1920 Svalbard Treaty signed in Paris are at the heart of the problem.
• The treaty recognises Norway’s “full and absolute sovereignty”, but gives the signatory nations an equal right to economic activities on Svalbard and its territorial waters. 
• The core issue is to agree on the geographical scope of the treaty and how far all signatory states benefit from an equal access to resources.
• With a strict interpretation of the treaty, Oslo says the agreement applies only to the 12-mile limits of the territorial waters surrounding Svalbard and not any further. 
• But Brussels has a more loose interpretation of the treaty and says it covers 200 miles around Svalbard, in line with the concept of an economic zone that did not exist when the treaty was signed.
• The snow crab, first recorded in the Barents Sea in 1996, is an invasive, and more importantly, a sedentary species as it lives in permanent contact with the seabed. 
• This means that the rules that apply to snow crabs are more similar to oil than to fishing.
• The crab dispute could create a “precedent” that “would have implications for oil and gas”, warns Harald Sakarias Brovig Hansen, a researcher at the Fridtjof Nansen Institute.
• A large amount of the 17.7 billion barrels in the region could be in southeastern Svalbard, according to the Norwegian Petroleum Directorate.

::Business and Economy::

Debt funds as an investment option

• While equity funds invest mostly in shares of listed companies, debt funds invest in instruments like government bonds, commercial papers (CPs), certificate of deposits (CDs) and non-convertible debentures (NCDs). 
• Debt funds invest in such securities and earn interest income that is shared among the investors after deducting the fund-management charges. 
• By investing in such debt schemes, investors can indirectly invest in instruments like government bonds as well where direct retail investment is not possible.
• Debt funds can be classified on the basis of the tenure of the bonds or instruments in which they invest. Liquid funds invest in instruments that have a tenure of less than 90 days. 
• Then come the short-term funds that invest in instruments that typically have a tenure of three to six months. There are corporate debt funds too that could have a tenure of up to three years. 
• The long-term funds would invest in bonds that have a tenure of three to five years or even more like in the case of government bonds (G-Secs).
• The share of real retail money in debt funds is still minuscule though the share is rising as more and more investors take to financial planning wherein a certain portion of the investment fund is allocated to debt products. 
• Most fund houses now offer systematic investment plan (SIP) facility for debt funds as well. 
• Interestingly, debt funds are popular among high net worth individuals (HNIs) to park their money temporarily before moving to other asset classes, mostly equity. Debt funds are generally used by banks and corporates for their treasury operations.
• Debt funds offer more return than bank fixed deposits and that is one reason why many HNIs and institutions use such schemes for their treasury operations.
• While debt schemes offer comparatively higher returns, the risk is also higher compared to the safe FDs that offer assured returns. In the case of bonds, the price could fall due to various reasons thereby impacting its price and ultimately the return. 
• There have been cases where the securities have been downgraded that has led to the scheme taking a hit. 
• The tax rate is 20% with indexation and 10% without indexation. Indexation refers to the mechanism wherein the gains are adjusted against the rate of inflation to derive the net taxable gains from the schemes.

Two Indian conglomerates have bid for supplying equipment for Chabahar Port

• Two major Indian conglomerates have bid for supplying key equipment for the strategic Chabahar Port in Iran, while the process is on to expand financial eligibility criteria to attract more bidders.
• This comes against the backdrop of India being keen on expediting work on this port, located in the Sistan-Baluchistan province on the energy-rich Persian Gulf nation’s southern coast that can be easily accessed from India’s West coast, bypassing Pakistan.
• Bids were invited on behalf of India Ports Global Limited (IPGL).
• Shipping, Road Transport and Highways Minister Nitin Gadkari had earlier said the government was hopeful of completing the work on the first phase of the project in 2018.
• The Cabinet has already approved funds for development of the project.
• For greater trade and investment flow with Iran and neighbouring countries, the Cabinet last year had cleared proposals for development of Chabahar port including through a $150 million credit from Exim Bank.
• As per the MoU signed between the two nations in May last year, India is to equip and operate two berths in Chabahar Port Phase-I with capital investment of $85.21 million and annual revenue expenditure of $22.95 million on a 10-year lease.
• Ownership of equipment will be transferred to the Iranian side on completion of 10 years or for an extended period, based on mutual agreement.
• The Iranian side had requested for provision of credit of $150 million in accordance with the MoU.
• As per the pact, operation of two berths is to commence within a period of maximum 18 months after the signing of the contract.

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