Current Affairs July 18, 2023: Global Assessment Report on DRR 2023, Advance Trade Authorization Scheme, Local Currency Settlement

{GS2 – Polity – Misc – 2023/07/18} Indian Red Cross Society (IRCS)

• Context (PIB): The President of India, Smt. Droupadi Murmu presided over the ceremonial session of the Annual General Meeting of the Indian Red Cross Society (IRCS) at Rashtrapati Bhavan.
• Indian Red Cross Society is a voluntary humanitarian organisation.
• It is a member of the International Red Cross and Red Crescent Movement.
• It provides relief during disasters/emergencies and cares for vulnerable people and communities.

Evolution

• IRCS was established in 1920 under the Indian Red Cross Society Act.
• The act was last amended in 1992, and rules were formed in 1994.

Structure

• The President of India is the President, and the Union Health Minister is the Chairman of the Society.
• The National Managing Body is responsible for the supervision of the functions of IRCS committees.
• It consists of 18 members. The President nominates the Chairman and six members. The state and UT branches elect the remaining 12 through an electoral college.

{GS3 – DM – Reports – 2023/07/18} Global Assessment Report on DRR 2023

• Context (UNDRR): United Nations Office for Disaster Risk Reduction published Global Assessment Report on Disaster Risk Reduction 2023 (GAR-DRR 2023).
• The theme was Mapping Resilience for the Sustainable Development Goals.

Key Findings

• Global warming will surpass 1.5°C above pre-industrial levels during the next decade.
• The number of people affected by disasters has increased by 50% in the past 30 years.
• The economic losses from disasters have increased by 150% in the past 30 years.
• The GAR-DRR 2023 explores how to build resilience in a complex and risky world.
• It highlights the interconnectedness of risks and how pitfalls can be transformed into opportunities.

{GS3 – IE – Export – 2023/07/18} Advance Trade Authorisation Scheme

• Context (PIB): DGFT implements the Advance Authorisation Scheme under the Foreign Trade Policy.
• Advance Trade Authorisation Scheme provides duty-free import of raw materials for manufacturing export items.
• Manufacturers enjoy exemption from customs duty, education cess, social welfare cess, anti-dumping duty, countervailing duty and safeguard duty, Integrated GST and compensation cess.

List of imports covered under the scheme

• DGFT specifies the number of inputs allowed for any given product by issuing a sector-wise list of standard input-output norms.
• It spells out the required quantity of inputs for specific products while also considering any wastage during manufacturing.

Range of inputs covered

• It covers inputs that are physically incorporated into the final product.
• It also includes fuel, oil and other catalysts consumed or used to produce the export product.

• Biotechnological items are allowed if the Department of Biotechnology approves and issues a NOC.

Eligibility

• The scheme is open to
  1. Manufacturer exporters
  2. Merchant exporters
  3. Suppliers to the UN and other aid programmes, who act as subcontractors of the projects
• In the case of pharma imports, the authorisation will be extended only to manufacturer-exporters.

Value-addition Requirement

• The raw materials imported under the scheme can be exported after a value-addition of at least 15%.
• For tea, the value-addition requirement is 50%.

{GS3 – IE – Exports – 2023/07/18} Export Preparedness Index (EPI) 2022

• Context (PIB): NITI Aayog has released the third edition of the ‘EPI’ for States/UTs of India.
• Export Preparedness Index (EPI) is an annual report released by NITI Aayog.
• EPI 2022 presents a comprehensive analysis of India’s export performance in FY22, along with its sector-specific and district-level merchandise export trends.
• The report evaluates the performance of the states across four pillars:
  1. Policy
  2. Business Ecosystem
  3. Export Ecosystem
  4. Export Performance
• These four pillars are further based on ten sub-pillars.

Highlights of the report

• The EPI 2022 Report observed that most ‘Coastal States’ have performed well.
• Tamil Nadu, Maharashtra, Karnataka, and Gujarat are the top performers.
• Haryana is the best-performing state among the landlocked states.

• Gujarat’s Jamnagar and Surat are among the top-performing districts.

• Agriculture exports in FY2022 touched US$ 50 billion in value, an increase of 20% over 2020-21.
• Top five states in terms of overall exports are Gujarat, Maharashtra, TN, Karnataka, and UP.

Importance

• The EPI delves deeper beyond states and examines exports at the district level.
• It empowers the State governments with region-specific insights to assist decision-making.
• It can catalyse competitive federalism, elevating the export performance of every state.

{GS3 – IE – Reforms – 2023/07/18} Local Currency Settlement (LCS) System

• Context (IE): India and UAE signed an MoU on the Local Currency Settlement (LCS) system.
• This system will allow for the use of the Indian rupee and UAE dirham in bilateral trade, marking India’s first-ever LCS arrangement.
• Both sides agreed to link India’s UPI with UAE’s Instant Payment Platform (IPP).
• The LCS system is expected to bring a number of benefits to both India and the UAE, including:
  • Reduced transaction costs
  • Faster processing times
  • Increased stability in the exchange rate
  • Increased reliance on local currencies