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Insights Secure - 2015 Compilations: General Studies - 3
Insights Secure - 2015 Compilations: General Studies - 3
Insights Secure - 2015 Compilations: General Studies - 3
Source:
http://www.insightsonindia.com
http://www.insightsonindia.com
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General Studies 3
Topic: money-laundering and its prevention
Q) What are Global Depository Receipts (GDRs)? Recently GDR was in news related to
black money in India. Examine the issue. (200 Words)
The Hindu
Ans:
GDRs are financial instruments used by domestic companies to raise funds from
abroad. Recently SEBI has highlighted that through GDR black money is being
routed in India . They argue that such GDRs are used for round tripping activities
and are often not backed by real investors.
The likely modus operandi is as follows- investor A in India invests in an institution
in one of the tax haven nations. The domestic company issues funds by issuing GDR
to the same institution. However, by the time, the money reaches the domestic
company, it has changed hands several times and therefore is detect its source.
SEBI's report has shown links between investor A and the company raising GDR.
GDRs are an important source of funds for domestic companies. They have gained
importance as the domestic sources of funding are few and costly. Rates of interest
in India have been very high. Banks are reeling under high NPAs and therefore, are
exercising caution in lending to private sector. In such a scenario, they have no
choice but to raise funds from abroad using instruments like GDR.
Given the importance of GDR in fueling domestic growth, SEBI needs to strike a
balance between curbing sources of black money and at the same time ensuring that
licit financial flows are unaffected. Various approaches include- strengthening
international cooperation, specific targetting of financial instruments like
participatory notes which are used for routing black money
Business Standard
Ans:
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General Studies 3
Business Standard
Ans:
India, being the worlds largest arms importer, has often used its position to coax
arms exporters into parting away with sensitive technologies which would have
taken years and required immense capital investment to develop indigenously. The
procurement of Su-30MKIs from Russia alongwith technology transfer is a case in
point. However, this strategy has not always been beneficial.
Often, foreign exporters associate such technology transfers with numerous riders
such as exclusive procurement of raw materials from the originating country and
long-term deals for maintenance and spares which invariably makes us dependent
on the exporter. In this backdrop, the governments focus on Make in India is
unlikely to benefit the defence industry as foreign countries would continue to add
pre-conditions for defence deals even if they shift the manufacturing base to India.
However, the necessity of this initiative cannot be undermined as it is envisaged to
bring in numerous employment opportunities for the people. Also, even though the
technology transfers under this programme may be minimal, it will be sustained and
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Business Standard
Ans:
Continuous power supply is a sine qua non for continuous development. However,
the sector is grappling with a lack of initiative. Integrated development is needed to
bring all the sectors simultaneously upwards thereby increasing the capacity.
Challenges
-lack of coordination between the different ministries
-different prioritization by different ministries
-coal sector stuck in deep malaise, needs to be liberalized
-distribution and transmission are devoid of private sector competition
-usual monopoly in it has bred inefficiency
-citizens are devoid of choice of their own transmitter
-lack of research and development in renewable sources till now
-renewable energy sector only in infant stage
-FDI has not been allowed in the power sector (not sure of this)
-old problem of inefficiency in every sector, owing to lack of transparency and
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The Hindu
Ans:
The civil nuclear agreement with US was expected to be a long leap forward for
Indias
civil nuclear energy sector and for our energy security. But some provisions of
CLND act with its noble intention of quick and adequate compensation of victims,
has failed to allay many fears generated by it.
This act makes both the operator and supplier liable to provide compensation
whereas
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General Studies 3
Business Standard
Ans:
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The Hindu
Ans:
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The Hindu
Ans:
Jihad or holy war has transformed from religious battles in medieval history to a
justification for terror mongers to perpetrate violence . This has been largely created
by misinterpretation of holy texts by unscrupulous factions of the society. In recent
years we have seen a rise in educated youngsters falling into the trap of religious
fundamentalism. The following reasons have caused such a trend in Afghanistan
and Pakistan
1 Brainwashing of gullible adolescents and teenagers in schools, places of religious
studies and in some cases at homes of radicalised elders.
2 Due to high unemployment rates, desperate youngsters are made to believe that
death while contributing to jihad is a glorified death and are guaranteed rest in
heaven.
3 Smart youngsters who are loyal to the jihadi cause are provided with funds to
receive foreign education which will help their social standing. This in turn helps
authenticate the ideologies they preach to the common man.
4 Media and technology, especially the internet has provided terror outfits a
platform to access and influence thoughts and minds of the middle and upper
classes through radical material.
5 Educated youngsters with vested interests take a liking to jihad as a means for
attaining power and political influence.
6 Mentally disturbed qualified people use religion as an excuse to plunder masses
and create a situation of violence and havoc.
To curb this tendency the affected states have to study situations at the grass root
level and government needs to gain liking of the common people before hunting
down terror outfits.
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The Hindu
Ans:
Auctioning of public resources is a hot potato in public debate. The process,
procedures, policy of auctioning of several scarce resources like spectrum, coal,
petroleum is questioned after plethora of scams (like 2g, coal scam). The rising cost
of spectrum poses following challenges.
1. Increases cost to customer for service availed.
2. Induces monopolistic or oligopolistic market forces where big giants can enter and
rule the market.
3. Challenges government's Telecom policy of providing universal internet and
mobile connectivity.
4.Decreased private investment in Tele com sector.
5.Lesser physical capital formation in the form of infrastructure like towers etc.
6.Decreases returns in investment for consumers
In the last five year, auctioning of 2G and 3G resources, government has rallied
behind in demand and supply policy based on strict market principles. This is
evident from windfall gain by 3G auctioning.It is imperative to understand that
Tcom sector is not merely a mobile communication but is prime catalyst of socioeconomic development. Since the industry is still in developing stage, govt. requires
to adopt policies which are both consumer and market friendly.
Hence, TRAIs recommendation of decreasing licence cost, providing lucrative
incentives and tax benefits for investment in T-com sector and cultivating level
playing field for new entrants needs to be adhered to in near future.
Business Standard
Ans:
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Business Standard
Ans:
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The Hindu
Ans:
Rising intolerance among various sections of society is the greatest danger mankind
has ever faced. It is evident from recent attack on french magazine 's office, row over
PK movie etc. maintaining freedom and equality before law without losing social
harmony is certainly most difficult test for any democratic polity and society.
However freedom and equality are the fundamental natural rights which are the
founding stone for any civilized society and also provided in article 14,15 and 19 of
indian constitution. It should never be diluted in the name of security.
Many times these terrorist activities are due to absence of the above said rights or
wrong preaching by some people to fulfill their vested interests.
In fact society is made by taking some of the freedoms and rights of the participating
people but these reasons cannot justify the draconian laws like POTA, AFSPA etc.
Any thoughts which evolve between diverse negative thoughts around it will
sustain ages. Thus it is necessary to have difference of opinion and action among
democratic society. Only care should be taken in choosing ways in which opinions
are expressed. It should be not expressed using bullets. Modern government and
security should focus on reinforcing these beliefs in society and nation.
Room for constructive criticism upholding constitution as did by great freedom
fighters under the most repressing regime is the only solution to achieve social
harmony and internal security not the repression of beliefs or dilution of rights
available to the citizen.
Topic: Conservation
Q) It is said that Indias wildlife conservation model has many loopholes that only harm
wildlife in the end. In the light of increasing man versus wildlife conflicts that are taking
place, critically examine. (200 Words)
The Hindu
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