What is the National Stock Exchange (NSE) co-location case? The NSE is facing allegations that some brokers got preferential access through the co-location facility at the stock exchange, early login, and ‘dark fiber’, which can allow a trader a split-second faster access to the data feed of an exchange. Even this infinitesimally sooner access is …
Context: India’s foreign direct investment (FDI) policy was altered through a press note which made all investment from border sharing countries to be preapproved. But the government is re-examining extra scrutiny on Chinese investment. What was changed in FDI policy? Investment from countries with which India shared a land border would no longer be allowed …
Why blocking all Chinese investment is not a good idea? – UPSC GS3 Read More »
What are Bilateral Investment Treaties (BITs)? Bilateral investment Treaties (BITs) are agreements between two Countries (States) for the reciprocal promotion and protection of investments in each other’s territories by individuals and companies situated in either State. Aim: To encourage foreign investors to invest in a State and there by contributing towards overall developments and advancements of the economy. …
Bilateral Investment Treaties : Why needed? – UPSC GS3 Read More »
Context: The Central Board of Indirect Taxes and Customs (CBIC) recently notified the imposition of anti-dumping duty on five products manufactured in China, including certain aluminium goods and some chemicals, for five years. What is the anti-dumping duty? It is a remedy sanctioned by the WTO to protect a member country’s domestic industry from imports that have been priced …
Why imposing Anti-Dumping duty is not working for Chinese Products? – UPSC GS3 Read More »
Context: To make FTA negotiations successful, India needs to address some of the issues that are hampering India’s FTA with other regional trade blocs. Global developments in FTAs: US-Mexico-Canada Agreement (USMCA) EU-Vietnam FTA 15-member Regional Comprehensive Economic Partnership (RCEP). China and Taiwan, request for membership to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). …
Issues with India’s Free Trade Agreements (FTAs) – UPSC GS3 Read More »
Benefits of Free Trade Policy: The principle of comparative advantage: Freeing up trade moves a country towards specialization in products. This encourages the country to move towards products with low output costs and move away from comparatively costly products. Benefits of economies of scale: Open Trade allows each country to specialize in a handful of …
Context The pandemic that caused economic damage all over the world has led most governments to provide enormous stimulus support for economic growth, and this easy money has triggered a stock market boom. In just the past seven months, India has created more than 20 unicorns (startups that are valued by investors at more than …
Utility: Content can be used in questions related to FDI, Ease of Doing Business etc. Facts: India attracted the highest ever FDI of $81.72 billion in 2020-21. Impact of Arbitration Awards: Honouring contracts and enforcing awards are vital to attracting the confidence of FDI investors. However, a lack of confidence in the host state’s credibility …
Importance of Exports in Economic Growth: Since World War II many countries have grown on the back of rising investments and exports. Japan, South Korea, China, and to some extent, Thailand and Malaysia, are all examples of economies where exports played a major role in driving economic transformation. Relation between Exports and Imports: Experience of Asian …
India as a Global Investment Hub: India has the potential to become a Global Investment Hub. India’s unique advantages attract global companies to invest in India. In 2020, despite sharp economic contraction, India witnessed the fastest growth in Foreign Direct Investment (FDI) inflows among all the major economies. (>60 billion) Big firms like Google, Facebook, Walmart, Samsung, …