Current Affairs Assam – August 2018
( Covers all important Assam Current Affairs & GK topics for the month of August 2018 )
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August 3
India’s July Service PMI growth the Highest since October 2016
India’s services sector activity remained in the growth territory. Business activity in the sector has witnessed the strongest growth since October 2016 amid improved demand conditions. The seasonally adjusted Nikkei India Services Business Activity Index rose from 52.6 in June to 54.2 in July.
In PMI (Purchasing Managers Index) above 50 means expansion, while a score below that denotes contraction. The service sector observed the best performance since October 2016, underpinned by the strongest gain in new orders since June 2017.
With improved demand conditions, business confidence towards the 12-month outlook picked up from June’s recent low. Additionally, firms have raised their staffing levels at the strongest pace since April.
Nikkei India Composite PMI Output Index, that maps both the manufacturing and services sector, increased from 53.3 in June to 54.1 in July 2018.
FACTFILE – Purchasing Managers Indexes (PMI)
- PMI are economic indicators derived from monthly surveys of private sector companies. The Purchasing Managers’ Index (PMI) is an indicator of the economic health of the manufacturing sector.
- The PMI is based on five major indicators: new orders, inventory levels, production, supplier deliveries and the employment environment.
- The purpose of the PMI is to provide information about current business conditions to company decision makers, analysts and purchasing managers.
Apple becomes first publicly listed company to be valued at $1 trillion
Apple Inc became the first $1 trillion publicly listed U.S. company crowning a decade-long rise fueled by its iPhone that transformed it into a global powerhouse spanning entertainment and communications.
The tech company’s stock jumped 2.8 percent to as high as $207.05, bringing its gain to about 9 percent since 31st July when its reported June-quarter results above expectations and said it bought back $20 billion of its own shares.
Apple’s stock market value is greater than the combined capitalization of Exxon Mobil, Procter & Gamble and AT&T. It now accounts for 4 percent of the S&P 500. It’s stock has surged more than 50,000 percent since its 1980 initial public offering, dwarfing the S&P 500’s approximately 2,000-percent increase during the same almost four decades.
FACTFILE – Apple Inc. is an American multinational technology company headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, and online services.
- The company’s hardware products include the iPhone smartphone, the iPad tablet computer, the Mac personal computer, the Apple Watch smartwatch etc.
- Apple’s software includes the macOS and iOS operating systems, the Safari web browser etc.
- Formerly known as Apple Computer Company (1976–1977) and Apple Computer, Inc. (1977–2007)
Iran officially joins ASEAN’s TAC treaty
The Association of Southeast Asian Nations (ASEAN) ratified Iran’s membership in the Treaty of Amity and Cooperation in Southeast Asia (TAC).
On the sidelines of the 51st ASEAN Foreign Ministers’ Meeting in Singapore, Iran officially joined the TAC treaty in the presence of Foreign Minister Mohammad Javad Zarif.
FACTFILE – The Treaty of Amity and Cooperation in Southeast Asia is a peace treaty among Southeast Asian countries established by the founding members of the Association of Southeast Asian Nations (ASEAN), a geo-political and economic organisation of 10 countries located in Southeast Asia.
The purpose of the Treaty is to promote perpetual peace, everlasting amity and co-operation among the people of Southeast Asia which would contribute to their strength, solidarity, and closer relationship. In their relations with one another, the High Contracting Parties shall be guided by the following fundamental principles.
- Mutual respect for the independence, sovereignty, equality, territorial integrity and national identity of all nations,
- The right of every state to lead its national existence free from external interference, subversion or coercion,
- Non-interference in the internal affairs of one another,
- Settlement of differences or disputes by peaceful means,
- Renunciation of the threat or use of force, and
- Effective co-operation among themselves.
RBI asks Banks to partner with NBFCs
To promote deeper penetration of financial and banking services, the RBI has asked banks to enter into a tie-up with NBFC companies to extend loans to priority sectors. In this regard, non-deposit taking systemically important NBFCs have been allowed to co-originate priority sector loans with the banks.
As per the current directive, banks are required to lend 40% of their overall loans to sectors considered or included in the priority sector lending list ( areas include SME enterprises, affordable housing, agriculture and small ticket-size education loans.
There also is available a provision as per which in case banks fall short of their lending to the priority sector, they are allowed to buy such loans or certificates in their respect from other lenders.
As per bankers, this partnership to boost lending in such area shall be in the interest of both banks as well as NBFCs. On a year on year basis, as on June 30, 2018, the lending to priority sector has seen an increase to Rs. 25 lakh crore.
FACTFILE – Non-Banking Financial Company (NBFC)
- A Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, 1956 engaged in the business of loans and advances, acquisition of shares/stocks/bonds/debentures/securities issued by Government or local authority or other marketable securities of a like nature, leasing, hire-purchase, insurance business, chit business but does not include any institution whose principal business is that of agriculture activity, industrial activity, purchase or sale of any goods (other than securities) or providing any services and sale/purchase/construction of immovable property.
Difference between banks & NBFCs
- NBFC cannot accept demand deposits
- NBFCs do not form part of the payment and settlement system and cannot issue cheques drawn on itself
- Deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available to depositors of NBFCs, unlike in case of banks
FACTFILE – Deposit Insurance and Credit Guarantee Corporation
- DICGC is a subsidiary of Reserve Bank of India.
- It was established on 15 July 1978 under Deposit Insurance and Credit Guarantee Corporation Act, 1961 for the purpose of providing insurance of deposits and guaranteeing of credit facilities. DICGC insures all bank deposits, such as saving, fixed, current, Recurring_deposit for up to the limit of Rs. 100,000 of each deposits in a bank.
- The functions of the DICGC (Deposit Insurance and Credit Guarantee Corporation)are governed by the provisions of ‘The Deposit Insurance and Credit Guarantee Corporation Act, 1961’ (DICGC Act) and ‘The Deposit Insurance and Credit Guarantee Corporation General Regulations, 1961’ framed by the Reserve Bank of India in exercise of the powers conferred by sub-section (3) of Section 50 of the said Act.
August 4
Germany to give India 1 billion Euros for urban growth
India, which is set to see the “world’s largest wave” of urbanisation in the next two decades, may receive around one billion Euros from Germany as part of its financial and technical assistance in the sector till 2022.
Sustainable urban development was agreed as a new priority area of bilateral cooperation between India and Germany in 2016. Till 2022, Germany intends to provide financial and technical assistance in the range of 1 billion Euros.
Germany is the seventh largest foreign direct investor in India. There are around 215 Indian companies operating in Germany. The Joint Working Group on Sustainable Urban Development has identified Kochi, Coimbatore and Bhubaneshwar for bilateral collaboration.
Delhi tops the State Investment Potential Index (N-SIPI)
Delhi has toppled Gujarat from the top spot in a list of 21 states and union territories with the most investment potential. The national capital is followed by Tamil Nadu, Gujarat, Haryana, Maharashtra, Kerala, Andhra Pradesh, Telangana, Karnataka and West Bengal.
The ranking of 20 states and one Union Territory of Delhi was based on six pillars — land, labour, infrastructure, economic climate, governance and political stability and business perceptions.
NCAER launched the N-SIPI (State Investment Potential Index) series in March 2016. Gujarat had topped both the previous editions of the ranking.
Point2Remeber– Assam was ranked among the least favourable states for investment.
FACTFILE – National Council of Applied Economic Research (NCAER)
- Established in 1956, NCAER is India’s oldest and largest independent, non-profit, economic policy research institute, based in New Delhi.
- It was established in 1956 with financial support from the Ford Foundation, Finance Ministry and Tata Sons.
GST collections rose to Rs 96,483 crore in July month
The government collected Rs 96,483 crore as Goods and Services Tax in July, a tad higher than June’s figure of Rs 95,610 crore. The government attributed the increase in collection to the e-waybills that helped improve compliance.
Under GST, transporters or businesses have to generate an e-waybill for moving goods worth Rs 50,000 crore or more both within and outside states.
In July, 66 lakh businesses filed returns – the highest number of monthly GSTR-3B filed since the rollout of the tax regime in July 2017. Since April, there has been a steady increase in the number of returns filed. As many as 60.47 lakh returns were filed in April, 62.47 lakh in May and 64.69 lakh in June.
During the 28th meeting of the GST council on July 21, over 50 items were moved to lower tax slabs and some, including sanitary napkins, were exempted from any tax.
FACTFILE – Goods and Services Tax (GST)
- GST is an indirect tax levied in India on the supply of goods and services. GST is levied at every step in the production process, but is refunded to all parties in the chain of production other than the final consumer.
- The tax came into effect from July 1, 2017 through the implementation of One Hundred and First Amendment of the Constitution of India by the Indian government. The tax replaced existing multiple cascading taxes levied by the central and state.
- Goods and services are divided into five tax slabs for collection of tax – 0%, 5%, 12%, 18% and 28%.
- Petroleum products, alcoholic drinks, electricity, and real estate are taxed separately by the individual state governments.
- There is a special rate of 0.25% on rough precious and semi-precious stones and 3% on gold.
- In addition a cess of 22% or other rates on top of 28% GST applies on few items like aerated drinks, luxury cars and tobacco products.
- Pre-GST, the statutory tax rate for most goods was about 26.5%, Post-GST, most goods are expected to be in the 18% tax range.
August 2018 – eBook Monthly PDF | eBook Monthly Quiz PDF
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