National & International Events - Current Affairs for July, 2016

India and Mexico have charted out a fresh path in bilateral trade and investment with a focus on sectors like telecom and medical devices as well as renewable energy.

• This was agreed during a recent meeting of the bilateral HLG on Trade, Investment and Economic Cooperation.
• HLG or High Level Group established in 2007 has met on July 13-14 after 4 years.
• Mexico is considering increase in installed wind power capacity to 9.5 GW by 2018 gtom 2.5 GW.
• Suzlon has plans to spur development in this area.
• According to a recent report by Global Data India’s medical devices sector will grow to USD 17.6 billion in 2020 from 10.4 billion in 2014 while the Mexico medical device market will rise to USD 6.5 billion by 2020 from 4.9 billion in 2015

India’s first e-court was opened at High Court of Judicature at Hyderabad on 17th July 2016.

• It was inaugurated by SC judge Madan Lokur who heads the e-committee of the SC.
• This is a common high court for states of AP and Telangana.
• Aim of the e-court is to ensure speedy justice for litigants.
• Apart from the launch of the e-court, SC judge Madan B Lokur also announced India’s first Integrated Criminal Justice System will be launched in HC of Judicature at Hyderabad.
• System will integrate courts, police stations, forensic science labs and jails as well as prosecution.

Chief negotiators of EU and India held a meeting on 15th July 2016 to discuss the way forward for the Free Trade Agreement.

• India will negotiate to conclude the FTA as soon as possible.
• Negotiations on EU-India FTA began in 2007 and close to 16 rounds of negotiations have been carried out since then.
• India-EU FTA talks were deadlocked as a compromise could not be found to meet key demands.
• The key demands of the EU were that Indian eliminates duties on automobiles and wines as well as spirits and India’s main demands centred on data security status and easier temporary movement of service professionals.

India will lend Kenya USD 45 million to help develop a textile factory and other smaller industries, according to leaders of both the nations.

• On a four nation tour of Africa, this is part of the policy push of the African nation to become an international player.
• Kenya’s current president is Kenyatta Uhuru
• USD 30 million of the funds will be used to revive Rift Valley Textiles Factory which went out of business in 2000.

India and Cyprus have made the decision to revise the tax treaty under which capital gains tax will be levied on sale of shares on investments made after April 1, 2017.

• This brings the island nation at par with Mauritius in term of tax treatment on investment
• New Cyprus Double Taxation Avoidance Agreement has been signed by two countries.
• It will provide for source based taxation of capital gains on transfer of shares.
• As per the agreement reached between India and Cyprus on June 29, investments made prior to April 1 2017 will be considered differently
• Completion of the negotiation on avoidance of double taxation and prevention of fiscal evasion will pave the way for the removal of Cyprus from the list of Notified Jurisdictional Areas retrospectively from November 2013