Context: Recently, a G20 independent expert group released its report on strengthening Multilateral Development Banks (MDBs).

About Multilateral Development Bank (MDB):

• It is an international financial institution chartered by two or more countries for the purpose of encouraging economic development in poorer nations.
• They originated in the aftermath of World War II to rebuild war-ravaged nations and stabilize the global financial system.

• Significance of MDBs
  • Support Developing Countries: The MDBs provide financial and technical support to developing countries to help them strengthen economic management and reduce poverty. 
    • Instrumental Role: During the global financial crisis 2008, the MDBs provided $222 billion in financing, which was critical to global stabilization efforts. 
  • Building Institutional Capacity: MDBs support member nations in enhancing governance, policy frameworks, and institutional capacity. 
  • Beyond Political Borders: MDBs are concentrating more and more on solving problems that cut across national borders.
  • Support Climate Action: They back programmes aimed at reducing global warming and adapting to it, using renewable energy, safeguarding the environment, preserving biodiversity, and building sustainable infrastructure.
    • For Example-The World Bank has approved a five-year loan (for the second phase) to the National Mission for Clean Ganga (NMCG) or Namami Gange Project 
  • Support Private Sector Participation: By lowering risks, enhancing governance, and promoting public-private partnerships, they contribute to the development of an environment that is favorable for private investment.

Image Source: Brettonwoods Organisation

Need for Reforming MDBs:

• One Size Fit Approach: In order to pursue equitable and sustainable development, developing countries have a variety of different and changing needs, and MDBs’ current operational methods and business models are not best suited to address those needs.
• Balancing Traditional Priorities: As MDBs broaden their mandates, there is a concern that traditional priorities like poverty elimination and addressing inequality should not be compromised. 
• Not Fit for 21st century: The current institutional and regulatory framework for MDBs is out-of-date and unable to handle the complexity and quick-changing nature of the digital environment.
  • Example: New cross border challenges—climate change, pandemics, fragility, migration—require new finance capacity and new approaches. 
• Limited Resources: Resources are limited, making it difficult for MDBs to meet the rising demand for development funding.
  • The total flow of support from the World Bank and other MDBs to developing countries was $192 billion in 2022, however, it is a third less than the share of developing country GDP attained in 2009 .
• Lack of Private Sector Participation: MDBs encounter difficulties in securing private sector funding for development initiatives.
• Procedural Restrictions: MDBs frequently come under fire for being bogged down in bureaucratic processes, which can impede the implementation of projects and decision-making.
• Restricted Support: Currently, MDBs only mobilize 0.6 dollars in private capital for each dollar they lend on their own account.

Highlight of G20 Expert Group Report on Strengthening Multilateral Development Banks (MDBs)

• About Expert Group: Expert Panel, headed by economists Lawrence Summers and N.K. Singh was commissioned by the Group of 20 nations to propose reforms for MDBs with a focus on increasing funding for sustainable development goals and climate change.
• Expert Group suggested adopting a Triple Mandate:
  • Eliminating extreme poverty, boosting shared prosperity, and contributing to global public goods.
  • Tripling sustainable lending levels by 2030.
  • Creating a third funding mechanism to permit flexible and innovative arrangements to support elements of the MDB agenda.
• Role of G20: G20 should link sustainable lending levels of the MDB system in 2030 to the financial support needed by developing countries to invest to achieve SDG goals.
  • G20 should review the adequacy of such lending every three years.
• Infusing Capital: MDB should infuse spending of some $3 trillion per year needed by 2030, of which $1.8 trillion represents additional investments in climate action and $1.2 trillion in additional spending to attain other SDGs (like Health and Education).
  • An international development finance system should be designed by providing $500 billion in additional annual official external financing by 2030.
  • Global Challenge Funding mechanism of $50 billion: To tap into a coalition of willing donors and non-sovereign investors, to boost investment in Global Public Goods.
• Partnering with Private Player: MDBs should place the mobilization and catalyzation of private capital at the center of their sustainable development strategies,
  • They can help governments reduce policy and regulatory risk and align financial product offerings to private capital market gaps.
  • There are considerable innovative ways of attracting private capital into sustainable infrastructure, and MDBs must complement, rather than compete with, these efforts. 
• All Stakeholder Approach: MDBs, like the International Monetary Fund and World Bank, must work with governments and the private sector to reduce, share and manage risks and thus bring down the cost of capital.
• Ensuring Accountability: MDBs need to fix annual targets and judge performances by the outcomes secured in this altered framework of accountability.
• Implementation of G20 Capital Adequacy Framework: MDBs can optimize their balance sheets and create headroom to lend an additional $80 billion annually.

Other Recommendation to Reform MDBs

• Prioritizing investment: MDBs must prioritize investment in sectors that are critical for development and climate outcomes rather than spreading financing thin across the whole economy. 
• Support climate-related objectives: MDBs would help deploy concessional funding to support investment projects on needs-based criteria to incentivize larger climate investments.
• Country Specific Strategies: It must play a critical role in helping countries integrate the need for collective action on regional and global challenges into their strategies.
  • MDBs can help countries identify where their existing gaps and investment opportunities.
  • Funding should be disbursed to governments based on performance under the agreed country strategy.
• Reforming International Financial Architecture: Make it more inclusive, efficient and equitable and to grant developing countries greater representation and a stronger voice in the governance bodies of these institutions.
  • Strengthening of global financial safety nets through precautionary and insurance lines that enable developing economies to cope with crises and exogenous shocks.
  • Close coordination between the Bretton Woods Institutions to better respond to the debt restructuring needs of developing countries. 

Conclusion

• Making MDBs more relevant for addressing 21st-century challenges would contribute towards enhancing human welfare. 
• Deeper integration with multiple stakeholders is crucial.

News Source: Business Standard

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Context: 

A G20 meet was held recently to discuss sustainable ways to harness ocean resources. 

Ocean Resources:

• The living and nonliving resources found in the ocean water and bottoms are called “marine resources.” 
• Marine resources are the living and nonliving things that can be found in the ocean’s water and on its bottom. These resources, which include marine water, are called marine resources.

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Broad Classification of Ocean Resources

• Biotic Resources: The oceans’ biological resources include fish, crabs, mollusks, coral, reptiles, and mammals, among others.

1. Planktons: Zooplanktons and phytoplankton are microscopic organisms that float to the surface of the water.The microscopic foraminifera, radiolarians, diatoms, coccolithophores, dinoflagellates, and larvae of several marine animals, such as fish, crabs, sea stars, etc., are a few examples of planktons.
2. Nekton:  The animals that are actively moving in the water are considered nekton. Examples include invertebrates like shrimp and vertebrates like fish, whales, turtles, and sharks.
3. Benthos: The organisms that make up the benthos are those that are biologically connected to the ocean floor. Echinoderms, crustaceans, mollusks, poriferans, and annelids make up the majority of the benthos.

Abiotic Resources: 

• Abiotic resources of the ocean refer to non-living natural resources that can be found within the marine environment. 
• They are broadly classified as mineral resources and energy resources.

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Mineral resources: 

1. Minerals dissolved in seawater:  Certain minerals are present in small quantities within seawater itself and can be extracted using specialized processes. 
   • Continental Shelf and Slope Deposits: These deposits are found on the shallow seabed regions, primarily on the continental shelves and slopes. For Examples: Diamond, Fisheries Sector, Pearls, Monazite sand, a source of thorium, found off the Kerala coast.
2. Sediments on the deep ocean floor: Nodules of manganese contain a variety of minerals, including lead, zinc, nickel, copper, cobalt, and copper.

Energy Reserves:

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Blue economy:

• As per the World Bank, the blue economy is defined as “sustainable use of ocean resources for economic growth, improved livelihoods, and jobs while preserving the health of the ecosystem.”
• The blue economy comprises a range of economic sectors and related policies that together determine whether the use of ocean resources is sustainable. 

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Components of Blue economy:

• Fisheries and Aquaculture: Sustainable fishing practices and responsible aquaculture contribute to food security, employment, and income generation.
• Maritime Transportation and Shipping: The shipping industry plays a crucial role in global trade and connectivity.
• Tourism and Recreation: Coastal and marine tourism can stimulate local economies if  overexploitation and environmental degradation are avoided..
• Renewable Energy: The blue economy includes the development of renewable energy sources like offshore wind, wave, and tidal energy, reducing dependence on fossil fuels.
• Coastal Development: Sustainable development of coastal areas involves balancing human activities with conservation efforts to protect marine ecosystems.

Challenges of blue economy:

• Overfishing: Fish population is being depleted faster than the rate of replenishment. This not only disrupts marine ecosystems but also impacts the livelihoods of coastal communities reliant on fishing.
• Pollution and marine debris: Pollution from industrial waste, agricultural runoff, plastic debris, and oil spills adversely affect marine life, degrade habitats, and disrupt the entire marine food chain.
• Climate change impacts: Rising ocean temperatures, sea level rise, and ocean acidification due to climate change pose serious threats to marine ecosystems and coastal communities. Coral bleaching, habitat loss, and shifts in species distribution negatively impact fishing and tourism industries.
• Illegal, unreported, and unregulated (IUU) fishing: IUU fishing undermines sustainable fisheries management by bypassing regulations and quotas, posing risks to fish stocks and the livelihoods of legitimate fishers.
• Sustainable Technologies: Developing sustainable technologies for ocean exploration and resource extraction is expensive and risky. Striking a balance between innovation and environmental concerns is essential for the blue economy’s success.
• Limited technology and infrastructure: Many coastal and developing regions lack the necessary technology and infrastructure to fully capitalize on blue economy opportunities, such as adequate port facilities, maritime transportation, and monitoring systems for sustainable resource management.
• Inadequate data and information: Sound decision-making in the blue economy relies on accurate and up-to-date data on ocean resources and ecosystems. Gaps in data hinder the formulation of effective policies and strategies.
• Coastal erosion and habitat loss: Human activities like coastal development and dredging contribute to habitat loss and erosion, severely impacting critical marine ecosystems like mangroves, salt marshes, and coral reefs.
• Collaboration among nations: The sustainable management of ocean resources will require collaboration across borders and sectors through a variety of partnerships which is particularly challenging for Small Island Developing States (SIDS) and Least Developed Countries (LDCs) who face significant limitations.

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How can building a blue economy help us achieve the SDGs?

• Environmental sustainability: The blue economy concept seeks to promote economic growth, social inclusion and preservation or improvement of livelihoods while at the same time ensuring environmental sustainability. So, to build a blue economy, sustainability needs to be placed at its center. 
• Interlinkages: It needs to be ensured that policies do not undermine each other and that interlinkages are leveraged for the benefit of people, planet and prosperity.

India’s Blue Economy:

• GDP: India’s blue economy accounts for roughly 4% of the GDP and is estimated to increase once the mechanism is improved. 
• Fisheries: India is the second largest fish producing nation in the world and has a fleet of 2,50,000 fishing boats. 
• Minerals: India has been granted exclusive rights to explore polymetallic nodules in the Central Indian Ocean Basin. It has explored four million square miles and established two mine locations since then.This contract was initially signed on 25th March 2002 for a period of 15 years, which later was extended by the authority twice for 5 years period, during 2017 and 2022.
• Coastline: India has a marine position with 7,517 kilometers of coastline. Nine of India’s states have access to the coastline. 
• Shipping Industry: Modal share of coastal shipping has the potential to increase to 33% by 2035, up from roughly 6% presently. 
• Oil and gas trade: Most of the country’s oil and gas is supplied by sea, leading to the Indian Ocean region being critical to India’s economic growth.  
• Global economic corridor: The Indian Ocean’s Blue Economy has become a global economic corridor. It is the world’s third-largest body of water, covering 68.5 million square kms and rich in oil and mineral resources. 

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Measures by India:

• Resource inventories: Under the schemes “Ocean—Services, Modelling, Application, Resources and Technology (O-SMART)” and “Deep Ocean Mission (DOM)” of MoES, resource inventories for energy, fisheries, and minerals have been taken up. 
• Exploration of Polymetallic Nodules: Government of India has been given rights for exploration of polymetallic nodules from the Central Indian Ocean Basin (CIOB).
  • Seabed is known to contain polymetallic nodules, polymetallic sulphides, and cobalt-rich manganese crusts.
  • India’s estimated polymetallic nodule resource potential is 380 million tonnes, containing 4.7 million tonnes of nickel, 4.29 million tonnes of copper and 0.55 million tonnes of cobalt and 92.59 million tonnes of manganese. 
  • These are critical for transitioning to a low-carbon economy that pivots on wind, solar and geothermal power. For instance, an electric car battery needs nearly 8 kilograms of Lithium, 35 kilograms nickel, 20 kilograms manganese, and 14 kilograms of cobalt. 
• Inclusive Approach: According to the Sixth National Report (NR6) to the CBD, India is on pace to meet its biodiversity targets and has exceeded many of them with stronger inclusion of local communities, Indigenous peoples, and women in conservation activities. The 2017 Wetland Conservation Rules in India promoted the concept of “wise use,” which involves people in conservation.
• Preventing coral bleaching: The Coastal Ocean Monitoring and Prediction System (COMAPS) and Coral Bleaching Alert System (CBAS) are two measures the Indian government has done to save its coral reefs.
• Mangrove protection: To collaborate on the implementation of initiatives in mangrove areas, Andhra Pradesh has established eco development committees and Van Samrakshan Samithis. 

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International Alliances: 

• International Blue Carbon Initiative: “Magical Mangroves—Join the Movement” to combat climate change through the preservation and restoration of coastal and marine ecosystems underlines the importance of protecting mangroves
• Alliance for Blue Nature: It is an international collaboration with the goal of advancing Ocean Conservation Areas.
• GloLitter Partnerships Project: It seeks to assist the fishing and maritime transportation industries in transitioning to a post-plastic world.
• London Convention: A 1972 treaty on preventing marine pollution by the discharge of wastes and other materials.
• Global Programme of Action (GPA): It aims to protect marine environments from land-based activities.

Other Initiatives: 

• Southeast Asian initiatives:  To balance coastal conservation and development with habitat and ecological protection, such as “blue infrastructure development” and “building with nature” techniques, are being adopted.
• One Health model: It unifies ecosystems, agriculture, wildlife, and urban environments into a single approach to the well-being of people and the environment.
• Biodiversity Vision 2050: The biodiversity vision for 2050 calls for the importance, preservation, restoration, and judicious use of biodiversity.
• UN’s 30X30 goal: safeguarding at least 30% of the earth by 2030.

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News Source: The Hindu

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Context: 

The Ministry of Statistics and Programme Implementation (MoSPI) has replaced the Standing Committee on Economic Statistics (SCES) with a Standing Committee on Statistics (SCoS).

Background:

• About SCES: The SCES was formed in late 2019 to examine economic indicators related to the industrial sector, services sector, and labor force statistics.
• Limited Purview: The SCES had a restricted scope and focused on datasets like the Periodic Labour Force Survey(PLFS), Annual Survey of Industries(ASI), Index of Industrial Production(IIP), and Economic Census.
• Non-performance: ‘Data quality issues‘ were cited as the reason why the most recent round of household surveys on consumption expenditure and employment  were withdrawn.
• Broader Mandate of SCoS: To overcome the limitations, the SCoS was established with a wider mandate. 
  • It is responsible for reviewing all surveys conducted under the National Statistical Office (NSO).

About Standing Committee on Statistics (SCoS):

• Mandate: 
  • Reviewing All Surveys: The SCoS is tasked with reviewing the framework and results of all surveys conducted under the National Statistical Office (NSO). 
  • Data Gap Identification: The SCoS is responsible for identifying data gaps in official statistics. It will pinpoint areas where data is lacking and devise strategies to address these gaps.
  • Exploring Administrative Statistics: The committee is mandated to explore the use of administrative statistics to improve data outcomes. 
  • Technical Advisory Role: The SCoS will provide technical advice to the Ministry on various aspects of surveys, including sampling frame, design, survey methodology, and finalization of results.

Comparison between SCES and SCoS:

News Source: The Hindu

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Context:

National Multidimensional Poverty Index: A progress of Review 2023′ — was released by Niti Aayog.

About National Multidimensional Poverty Index:

• The National MPI measures simultaneous deprivations across the three equally weighted dimensions of:
  • Health:  Nutrition, Maternal Health and Child and Adolescent Mortality 
  • Education: Years of Schooling, School attendance,
  • Standard of Living:  Cooking fuel, Sanitation, Drinking water, Electricity, Housing, Assets, and Bank accounts.
• It uses statistics from the National Family Health Survey (NFHS-5 (2019-21)) to capture the various dimensions of poverty in India.

Key Findings:

• Significant Decline in Multidimensional Poverty in India:
  • A record 13.5 crore people moved out of multidimensional poverty between 2015-16 and 2019-21.
  • India has registered a significant decline of 9.89 percentage points in the number of India’s multidimensionally poor from 24.85% in 2015-16 to 14.96% in 2019-2021. 
• Rural Areas Witness Fastest Decline in Poverty: The rural areas witnessed the fastest decline in poverty from 32.59% to 19.28%. During the same period, the urban areas saw a reduction in poverty from 8.65% to 5.27%.
• Multidimensional Poverty Estimates for States and Union Territories: 
  • The Report states that the fastest reduction in the proportion of multidimensional poor was observed in the States of Uttar Pradesh, Bihar, Madhya Pradesh, Odisha, and Rajasthan.
  • Uttar Pradesh registered the largest decline in the number of poor with 3.43 crore people escaping multidimensional poverty. 
• Reduction in MPI value: Between 2015-16 and 2019-21, the MPI value has nearly halved from 0.117 to 0.066 and the intensity of poverty has reduced from 47% to 44%.

How did India reduce multidimensional poverty so fast?

• Areas of reduction: India achieved such rapid poverty reduction lies in the data about the seven standard-of-living sub-indicators— cooking fuel, sanitation, drinking water, housing, electricity, assets, and bank accounts— rather than in the indicators for health and education.
• For instance, the NITI Aayog report shows that around 58 percent of Indians were deprived of clean cooking fuel in 2015-16, but by 2019-2021, it was only 44  per cent.
• Similarly, the percentage of individuals lacking adequate sanitation facilities dropped from 51.88 per cent to 30.13 per cent, electricity deprivation went from 12 per cent to 3.27 per cent, and the percentage of people lacking access to banking reduced from 9.66 percent to 3.69 per cent.

News Source: The Hindu

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Context: 

Recently, the Crimea bridge suffered damage when one of its sections was blown up.           

About Crimea Bridge:

• The Kerch Bridge, also known as Crimea Bridge, is the only direct link between the transport network of Russia and the Crimean peninsula.
• The bridge that passes over the Kerch Strait was inaugurated in 2018, four years following Russia’s annexation of Crimea.
• Significance of the Bridge:
  • Supply of Essential Goods: The bridge is crucial for supplying essential goods to Crimea, including fuel, food, and products for the Black Sea Fleet in the port of Sevastopol. 
  • Strategic Military Route: It also serves as a strategic military route, facilitating the movement of Russian forces to southern Ukraine.

News Source: Livemint

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Context:

India and Iran plan to step up operationalizing the International North South Trade Corridor (INSTC) in a move to boost trade with Russia.

(Image Credits: The Hindu)

About International North South Trade Corridor:

• The INSTC was  initiated in 2000 by Russia, India and Iran, is a multi-modal transportation route linking the Indian Ocean and the Persian Gulf to the Caspian Sea via Iran, and onward to northern Europe via St Petersburg in Russia. 
• INSTC consists of sea routes, rail links, and road connections that connect Mumbai in India to Saint Petersburg in Russia, passing through Chabahar.
• Member Countries: It has been ratified by 13 countries namely, Azerbaijan, Belarus, Bulgaria, Armenia, India, Iran, Kazakhstan, Kyrgyzstan, Oman, Russia, Tajikistan, Turkey, and Ukraine.
• The corridor has several branches:
  • On the western side of the Caspian Sea, it would link Russia to Iran through Azerbaijan. 
  • The eastern branch runs along the eastern coast of the Caspian Sea and links the main corridor to different road and rail networks of Central Asian countries such as Turkmenistan and Kazakhstan.
• Benefits:
  • Boost to Energy Security: India remains dependent on imports for about 80% of its energy requirements, this corridor would open fresh avenues for energy security.
  • Enhanced Trade Connectivity:The INSTC can boost trade between India and Central Asia. 
    • For Example: INSTC could boost trade to a total of US$ 170 billion from India to Eurasia (60.6 billion in export and 107.4 billion in import).
  • Reduce Transit Time: The INSTC is projected to reduce transit time by 40%, shortening it from 45-60 days to 25-30 days. 
  • Decrease in Freight Cost: Additionally, it is expected to decrease freight costs by 30% in comparison to the Suez Canal route.

News Source: ET

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Context:

Recently, the NITI Aayog released the third edition of the report titled ‘Export Preparedness Index (EPI) 2022’ for States/UTs.

About Export Preparedness Index (EPI) 2022:

• It is a comprehensive tool that measures the export preparedness of the States and UTs in India.
• Aim:
  • To undertake a comprehensive analysis of States and UTs across export-related parameters in order to identify their strengths and weaknesses.
  • To highlight the achievements of states/UTs and encourage peer learning among the states/UTs to uphold the spirit of competitive federalism.

Pillars of Evaluation: The index evaluates the performance of states and UTs across four pillars:

• Policy Pillar: Assesses adoption of export-related policy ecosystems at state and district levels, along with the institutional framework surrounding the ecosystem.
• Business Ecosystem: Evaluates the prevailing business environment, business-supportive infrastructure, and transport connectivity in a state/UT.
• Export Ecosystem: Focuses on export-related infrastructure, trade support to exporters, and Research and Development (R&D) activities fostering innovation.
• Export Performance: Gauges the growth of a state’s export over the previous year, export concentration, and footprint on global markets.

Key Findings of the Index:

Significance: 

• Performance Analysis: The Export Preparedness Index (EPI) allows regions to compare their export performance with others and identify areas where they can improve.     
• Evidence based policy making: It helps them analyze potential challenges and develop better policies to promote export-driven growth at the local level. 

News Source: PIB

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Context: 

Directorate General of Foreign Trade (DGFT) implements the Advance Authorisation Scheme under the Foreign Trade Policy.

About Advance Authorisation Scheme:

• It allows duty-free import of inputs, which are physically incorporated in an export product. 
• In addition to any inputs, packaging material, fuel, oil, and catalyst which is consumed / utilized in the process of production of export products, is also allowed.
• Eligibility of Inputs: Determined by Sector-specific Norms Committees based on input-output norms.
• Prerequisites for Applying:
  • To apply for an Advance Authorisation scheme, an Import-Export Code (IEC) is required.
  • Other prerequisites are mentioned in the Chapter 4 of Foreign Trade Policy and Handbook of Procedures.

News Source: PIB

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Context:

The United Kingdom formally signed a treaty to join a major Indo-Pacific bloc —‘Comprehensive and Progressive Agreement for Trans-Pacific Partnership(CPTPP)’

About CPTPP:

• The CPTPP requires countries to eliminate or significantly reduce tariffs and make strong commitments to opening services and investment markets.
• Members: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Singapore and Vietnam.
• It laid down rules addressing competition, intellectual property rights and protections for foreign companies. 
• Geopolitical Significance: CPTPP is seen as a bulwark against China’s dominance in the region.
• Benefit: CPTTP will cut tariffs for UK exports to Asia Pacific countries.

News Source: The Indian Express  

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Context– Recently, India-UAE signed a Rupee-Dirham deal during Prime Minister Narendra Modi’s visit. 

Significance for India 

• Deal between Central Banks: The Central Bank of the UAE and the Reserve Bank of India (RBI) decided to move on with the expansion of their economic cooperation.
• Local Currency Settlement System: The LCSS agreement will also promote international investments and money transfers.
• Indian Remittance: With regard to Indian remittances to the UAE in particular, using local currencies will expedite settlement and reduce transaction costs.
• Fourth-Largest Source of Energy: Paying in Rupees would help India to pay for the purchase of items from the UAE, which is its fourth-largest source of energy, including oil and other commodities.
• For UAE’s oil at the moment, India pays the UAE in dollars.
• India-UAE Payment Messaging System: The MoUs would also enable a connection between the UAE’s payments messaging system and India’s Structured Financial Messaging System (SFMS).

Memoranda of Understanding (MoU) Between India and UAE

• Central bank Cooperation: Two MoU pertaining to diverse subjects have been signed between the Reserve Bank of India (RBI) and the Central Bank of the United Arab Emirates (CBE).
• Cross-border Transaction: A framework for promoting cross-border transactions in local currencies (rupee and dirham) will be provided by the first agreement.
• Areas of Cooperation: According to the second MoU, the two central banks will cooperate to link the Unified Payments Interface (UPI) of India with the Instant Payment Platform (IPP) of the UAE, as well as with RuPay switch and UAESWITCH.
• Alternate to SWIFT: Both countries will work to create a messaging system that might compete with SWIFT (the Society for Worldwide Interbank Financial Telecommunication).

Bilateral Air Service Agreement 

• The UAE and India’s airlines are permitted to fly a total of 66,000 seats per week between Dubai and 15 Indian destinations under the bilateral air service agreement (ASA) that was signed in January 2014 between the two countries.

INDIA-UAE Trade

• Since the Comprehensive Economic Partnership Agreement between the UAE and India went into effect in May 2022, trade between the two countries has risen by almost 15%. 
• About $85 billion in bilateral trade, including oil purchases, is exported from the UAE to India, accounting for about $50 billion of that total.

News Source- The Hindu  

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Context:

• Under the Pradhan mantri kaushal Vikas Yojana, Namda craft of kashmir is being successfully revived and the first batch of Namda art products for export to the UK has been shipped.

About Namda Art:

• Fabric: Namda are felted rugs that are made by enmeshing wool fibers with water, soap and pressure and then embroidering the resultant fabric. Low quality wool mixed with a small quantity of cotton is used to manufacture namdas.
• Floor covering and mattress: These are extensively used in Kashmiri households as an effective and inexpensive floor covering and mattress.
• Types: They are usually of two types, plain and embroidered. Formerly, woolen yarn was used for embroidery, but now acrylic yarn (cashmelon) is in use. 
• Embroidery: Namdas are embroidered with thread, which gives colour, beauty and strength to them. 
• Concentration: Cottage industry is concentrated in Anantnag, Rainawari and Baramula.

Significance:

• Felting wool: Felting the wool rather than weaving it, makes the most striking characteristic of this craft. 
• Keeping warm: Warming the locals of Kashmir as well as the royals to keep their family and guests warm when they would sit on the floor have used Namdas for centuries. 

News Source: pib

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