QUIZ – 2017: Insights Current Affairs Quiz, 19 July 2017

Solution: c.

• The Global Innovation Index 2016 ranked us 66th out of 128 countries. Although this is a jump of 15 places over the last year’s rank, India still lags behind China at 25, Russia at 43 and South Africa at 54.
• Such a dismal show is not surprising given our low levels of investment in Research and Development (R&D). According to the World Bank, in 2014, India’s gross spending on R&D was about 0.63% of its GDP, against 1.5% by China and 1.1% by Brazil. Many developed countries, on the other hand, spend upwards of 4% on their R&D.
• India was described as a top destination for Foreign Direct Investment (FDI) in R&D, with our R&D market valued at US$ 22.3 billion in 2016. The domestic investment in R&D by Indian private sector, in contrast, remains minuscule as the government still accounts for 77% of all research spending in the country.

Speech of the Vice President: PIB;

Solution: d.

The government has clarified its decision to levy 5% goods and services tax on assistive devices for the physically challenged.

• Most of the inputs for such goods attract 18% GST.
• Nil GST on any goods zero rates inputs, while domestic goods continue to bear input taxes.
• Further, for any goods which attract GST rate (other than Nil) which is lower than the inputs for such goods, the Central Goods and Services Tax Act, 2017 (GST law) provides for refund of accumulated input tax credit. Thus, 5% GST on assistive devices, rehabilitation aids, their manufacturers would enable their domestic manufacturers to claim refund of any accumulated Input Tax Credit. That being so, the 5% concessional GST rate on these devices/equipment would result in reduction of the cost of domestically manufactured goods, as compared to the pre-GST regime.
• The second reason for the levy is that if such goods are exempt, then even imports will have to be at zero duty, which will increase competition for the domestic industry. This would mean that domestically manufactured devices and equipment would bear the burden of input taxes, increasing their cost and becoming uncompetitive to imports.

ET; PIB;

Solution: a.

• The Ministry of Urban Development (now Ministry of Housing and Urban Affairs) launched the City Liveability Index. The index will be used to measure 116 cities, which include smart cities, state capitals, and cities with a population of above one million.
• The index will be a common minimum reference framework that will help cities know where they stand in terms of quality of life. It would also help cities to understand the interventions required to improve these standards.
• The cities will be assessed on a set of 79 parameters which would capture the extent and quality of infrastructure. These include availability of roads, mobility, education and health care, employment opportunities, emergency responses, mechanisms for grievance redressal, level of pollution, and availability of open spaces.

PRS MPR June 2017;

PIB;

Solution: b.

While hearing the challenge to the Aadhaar Act recently, the Supreme Court decided that it must first consider the question of whether the right to privacy is a fundamental right guaranteed by the Constitution. The judges noted that two earlier judgements of the court — M P Sharma’s case in 1954 and Kharak Singh’s case in 1962 — had held that privacy was not a fundamental right.

IE: MP Sharma and Kharak Singh;

Solution: c.

• Building expertise: The government will select one strategic partner for manufacture of each of the following defence equipment: fighter aircrafts, helicopters, submarines and main battle tanks. This is to ensure that each strategic partner maintains a core area of expertise. Addition of other defence equipments for strategic partnerships will be considered by the government in the future.
• Ownership and management: An organisation must be an Indian company (as defined under the Companies Act, 2013), owned and controlled by resident Indian citizens, to be eligible for strategic partnerships. Indian citizens must have majority representation on the company’s Board of Directors, and the chief executives of the company must be resident Indians. Maximum FDI permitted in such a company will be 49%.

PRS MPR June 2017;