MLC Daily Current Affairs – 02 September 2024

Today in History (September 02^nd, 1946)

On 2nd September 1946 The Interim government of India was formed formed in the process of Indian Independence. The interim government and the Constituent Assembly of India were given the task to oversee India’s transition to independence from British rule. The government was headed by Jawaharlal Nehru.

TEST YOURSELF

A) What is the name of the cyclonic storm recently seen in Arabian sea?

1. Bani
2. Rumi
3. Asna
4. Balakot

Answer: 2)
Explanation: The cyclonic storm named Asna is notable because it is the first cyclonic storm in the Arabian Sea in August since 1976.
B) Who gave the name Asna to the cyclonic storm?

1. The Indian Meteorological Department (IMD)
2. Pakistan
3. The Gujarat government
4. The Bay of Bengal authorities

Answer: 2)
Explanation: The name Asna, which means “the one to be acknowledged or praised,” was given by Pakistan.
C) Who has assumed the role of Cabinet Secretary as of Friday, succeeding Rajiv Gauba?

1. Ramesh Kaushal
2. Rajesh Somnathan
3. T.V. Somnathan
4. C. Govindrajan

Answer: 3)
Explanation: T.V. Somanathan has assumed the role of Cabinet Secretary as of Friday, succeeding Rajiv Gauba.
D) The head of the government summit of SCO will be held in October 2024 in

1. India
2. Pakistan
3. Japan
4. China

Answer: 2)
Explanation: Pakistan has invited India to the Shanghai Cooperation Organisation (SCO) Heads of Government (HoG) meeting in Islamabad on October 15-16. The Indian Ministry of External Affairs (MEA) has not yet decided on India’s participation or its level of representation.
E) What is SHebox recently seen in news?

1. Helpline for suicidal tendency women
2. A platform for women to search jobs easily
3. A platform for women victims of domestic violence
4. A portal against sexual harassment of women in the workplace.

Answer: 4)
Explanation: Union Ministry of Women and Child Development recently launched the new SHe-Box portal. It is a centralized platform for registering and monitoring complaints of sexual harassment of women in the workplace.

Summary of Today’s News

Anti-dumping duty on aluminium foil imported from China

Context:
The Ministry of Commerce and Industry recently recommended imposing an anti-dumping duty on aluminium foil imported from China.

Key Points about Anti-Dumping Duty:
• It is a protectionist tariff that a domestic government imposes on foreign imports that it believes are priced below fair market value.
• Dumping is a process wherein a company exports a product at a price that is significantly lower than the price it normally charges in its home (or its domestic) market.
• The duty is priced in an amount that equals the difference between the normal costs of the products in the importing country and the market value of similar goods in the exporting country or other countries that produce similar products.
• It is imposed to protect local businesses and markets from unfair competition by foreign imports.
• Thus, the purpose of anti-dumping duty is to rectify the trade distortive effect of dumping and re-establish fair trade.
• The use of anti-dumping measures as an instrument of fair competition is permitted by the World Trade Organization (WTO).
• The WTO allows the government of the affected country to take legal action against the dumping country as long as there is evidence of genuine material injury to industries in the domestic market.
• The government must show that dumping took place, the extent of the dumping in terms of costs, and the injury or threat to cause injury to the domestic market.
• While the intention of anti-dumping duties is to protect local businesses and markets, these tariffs can also lead to higher prices for domestic consumers.
• In India, the Ministry of Finance makes the final decision on whether to impose anti-dumping duties.

What is Countervailing duty (CVD)?

• It is a specific form of duty that the government imposes to protect domestic producers by countering the negative impact of import subsidies.
• CVD is thus an import tax by the importing country on imported products.
Why is CVD imposed?
• Foreign governments sometimes provide subsidies to their producers to make their products cheaper and boost their demand in other countries.
• To avoid flooding the market in the importing country with these goods, the government of the importing country imposes CVD, charging a specific amount on the import of such goods.
• The duty nullifies and eliminates the price advantage enjoyed by an imported product.
• The WTO permits the imposition of CVD by its member countries.
Countervailing duty v/s Anti-dumping duty:
• Anti-dumping duty is imposed to prevent low-priced foreign goods from damaging the local market. On the other hand, CVD will apply to foreign products that have enjoyed government subsidies, which eventually leads to very low prices.
• While the anti-dumping duty amount depends on the margin of dumping, the CVD amount will completely depend on the subsidy value of the foreign goods.

World Gold Council’s projection for gold consumption in India

The World Gold Council (WGC) has raised its projection for India’s gold consumption in 2024 to 850 tonnes from 750 tonnes.
About World Gold Council:
• It is the market development organisation for the gold industry.
• It is a nonprofit association formed in 1987 whose members comprise the world’s leading and most forward-thinking gold mining companies.
• The WGC was established to promote the use of and demand for gold through marketing, research, and lobbying.
• Headquartered in London, with operations in India, China, Singapore, and the USA, the WGC covers the markets which comprise about three-quarters of the world’s annual gold consumption.
• The WGC is also the global authority on gold, and they offer comprehensive analyses of the industry.
• It aims to maximize the industry’s potential growth by monitoring and defending existing gold consumption.
• It achieves this by setting up gold standards, proposing policies, ensuring fairness and sustainability in the gold mining industry, and promoting the usage and demand for gold for individuals, industries, and institutions.
• It also co-sponsors research in the development of new uses for gold, or of new products containing gold.
• WGC was the creator of the first gold exchange-traded fund.

Research and Analysis Wing (R&AW)

A 55-year-old man posing as an officer of intelligence agency Research and Analysis Wing (R&AW) was recently arrested after the suspect was caught intimidating locals.
About Research and Analysis Wing (R&AW):
• It was established in 1968 to handle India’s international intelligence affairs.
• At present, R&AW is under the aegis of the Prime Minister’s Office.
• Working mechanism: It collects military, economic, scientific, and political intelligence through covert and overt operations.
• The agency is also charged with monitoring terrorist elements and smuggling rings that transport weapons and ammunition into India.
Formation:
• Until 1968, the Intelligence Bureau (IB) was responsible for India’s internal intelligence and also handled external intelligence.
• However, after the 1962 China-India war and the Indo-Pakistani war in 1965, India established a separate and distinct external intelligence organization–the R&AW.
• Since its inception, RAW is credited with providing intelligence support to many significant operations on foreign soil.