Textile, Fiscal - Current Affairs Questions and Answers

ANSWER: Gandhinagar

Explanation:
A record 65 Memorandum of Understandings (MoUs)/agreements was signed on the second day of the Textiles India 2017 in Gandhinagar, Gujarat on 1 July 2017.

Of these 65 MoUs, 62 were signed by the Union textiles ministry and remaining three MoUs were signed by Gujarat government on textile sector.

The Textile Ministry includes MoUs with China, and Bangladesh for silk research, fashion technologies and knowledge transfer.

MoUs were signed between various domestic and international organisations, both private and government-owned.

Three government-to-government (G2G) MoUs were signed as well.

These were signed between the central silk board and department of agriculture of the Gyangxi Zhuang Autonomous Region, China.

They were for the development of improved silkworm breeds and mulberry varieties with the exchange of sericulture genetic materials.

Another MoU was signed between the ministry of textiles and the department of foreign affairs and trade – Australia for textiles and fashion projects.

The third was signed between the National Institute of Fashion Technology and the Bangladesh University of Fashion and Technology to encourage academic cooperation between the two institutes and strengthen academic interventions.

ANSWER: Coir

Explanation:
The Indian Coir sector’s revenue from exports touched an all time high of INR 2282 Cr by value and 9.57 Metric Tonnes in quantity in the 2016-17 financial year.

The Coir Board Chairman is C P Radhakrishnan.

The coir sector had fetched export revenue of Rs 1630 Cr in the financial year 2015-16 against INR 1,476 Cr achieved in fiscal year 2014-15.

Indian coir sector has tremendous potential to grow and provide employment to a large number of people.

Coir Board is going ahead with a project to fabricate a versatile spinning machine capable of producing yarn with uniform thickness in large quantity.

The government is considering to introduce a scheme that would extend financial support upto INR 2.50 Cr to the sector in order to promote larger investments by entrepreneurs.

ANSWER: MP

Explanation:
Madhya Pradesh has become the first state to adopt a January to December fiscal year. The decision was made in a cabinet meeting led by chief minister Shivraj Singh.

Prime Minister Narendra Modi recently encouraged states to adopting this idea.

The meeting also decided that a picture of Pandit Deendayal Upadhyay will be issued with all the government letter heads, banners and advertisements.

Following a proposal from Modi, the Centre is in consultation with the states to have a January to December financial year, doing away with the old tradition of financial year starting on April 1 and ending on March 31.

The system was adopted around 150 years ago during British rule.

ANSWER: 3.5 percent

Explanation:
GoI is confident of attaining the fiscal deficit target of 3.5 percent for 2016-2017.

India's fiscal deficit at the end of February 2016-17 was Rs 6.05 lakh crore, which was 113.4 per cent of the full-year target, on account of lower realisation on non-tax revenues.

The fiscal deficit, which is a gap between government’s total receipts and expenditure, at the end of February was higher when compared with 107.4 per cent in the similar period of the previous fiscal.

Finance Minister Arun Jaitley in the Budget had set the fiscal deficit target at 3.5 per cent for FY 2016-17, after achieving the preceding year’s target of 3.9 per cent.

ANSWER: INR 21,590 crore

Explanation:
Japan has committed an "official development assistance" of 371.345 billion yen (about Rs 21,590 crore) under 2016-2017 for various infrastructure projects, including the dedicated freight corridor, in India.

Total commitment of JICA ODA during two financial years 2015-16 and 2016-17 is 761.40 billion yen, which is 43.50 per cent of the total target for five years, it said.

For FY 2016-17, the ODA loan assistance has been committed to several projects including:

- Mumbai Trans Harbour Link Project (JPY 144.795 billion),

- Dedicated Freight Corridor Project (Procurement of Electric Locomotives) (JPY 108.456 billion) and

- Eastern Peripheral Expressway Intelligent Transport System (ITS) Installation Project (JPY 6.87 billion).

The Mumbai Metropolitan Region Development Authority (MMRDA), a State Government entity, has been allowed to borrow directly from Japan International Cooperation Agency (JICA) Official Development Assistance (ODA) loan for Mumbai Trans Harbour Link (MTHL) project.

The estimated project cost for Mumbai Trans-Harbour Link (MTHL) is INR.17,854 crore, out of which JICA loan portion is expected to be INR 15,109 crore.

India and Japan have had a long and fruitful history of bilateral development cooperation since 1958.

In the last few years, the economic partnership between India and Japan has steadily progressed, I.

ANSWER: Welspun

Explanation:
Textile maker Welspun India announced on 9^th Feb 2017 that it has entered into a strategic agreement with the Cotton Egypt Association (CEA).

This allows it to market its Egyptian cotton products with the CEA’s logo for the next five years until 2022.

CEA is a non-profit body set up in 2005 by Egypt’s ministry of industry and foreign trade set up to certify Egyptian cotton products made by textile manufacturers worldwide and ensure they maintain sourcing and supply quality.

CEA has allowed us to use the logo.

Welspun India announced it will spend $3 million in the next five years for marketing and promoting its Egyptian cotton products with the new logo.

The company said it is also exploring setting up a manufacturing facility in Egypt.

American retail chain Target Corp. terminated its contract with Welspun India in August 2016, accusing Welspun of passing off ordinary cotton products as Egyptian cotton.

This is considered higher quality and is more expensive.

Target was Welspun’s largest client, bringing in $90 million in sales last financial year.

Profits declined and Welspun faces class action lawsuits for violating American consumer laws, two of which were filed in September 2016.

Welspun’s business is largely export-oriented and it sells in 50 countries, including the US, Europe and the UK.

ANSWER: USD 53 billion

Explanation:
India’s trade deficit with China jumped to USD 53 billion in 2015-2016 from USD 48.48 billion in the previous fiscal.

• Increasing trade deficit with China will be attributed to the relative demands for imports in India and China for each other’s goods.
• Efforts are on to increase overall exports by diversifying trade basket with emphasis on manufactured goods, services, resolution of market access issues and other non tariff barriers.
• Major imports from China include telecom instruments, computer hardware and peripheral, fertiliser, electronic component, project goods, chemical and drug intermediaries.
• Exports to China include ore, slag, ash, iron and steel, tin, raw hides, leather, plastics and cotton.
• Bilateral trade between the countries stood at USD 70.73 billion in 2015-2016, from USD 72.34 billion in the earlier fiscal.

ANSWER: 2

Explanation:
Two textile parks have been approved for Uttarakhand and the state government has to now decide where they will be set up.

• In these parks, the weavers will be provided hi-tech infrastructure facilities, modern technology raw materials and training.
• The parks aim to improve the condition of weavers in remote areas and hilly areas along the Sino Indian border.
• This park will also help skilled youth get new work opportunities

ANSWER: USD 278.75m

Explanation:
Trade between India and Pakistan reached USD 339.43 million during the first two months of the 2016-2017 fiscal.

• Exports during April-May stood at USD 278.75 million and imports were aggregated at USD 60.68 million.
• Two countries had moved towards full trade normalisation on the basis of September 2012 roadmap till recently.
• In September 2012, it was agreed Pakistan would remove all trade restrictions through Wagah Attari border, transition to MFN (non discriminatory) status to India by December 2012.
• India and US have held consultations in May under the aegis of WTO dispute settlement mechanism on higher visa fee issue.

ANSWER: 0.9

Explanation:
Overall power deficit during the April-June quarter this fiscal was 0.9 percent while peak deficit was 2 percent.

• Central Electricity Authority said the demand-supply gap of electricity had been brought to the lowest ever since 2.1 percent during 2015-2016.
• It has further reduced to 0.9 percent during April-June 2016-2017.
• As against an overall demand of 295.34 billion units in April-June, 292.82 billion units were supplied, a deficit of 0.9 percent.
• Close to 149.97 billion units were supplied against the peak demand of 152.97 billion units.
• This recorded a deficit of 2 percent in the time under review.