India-Japan ties
Prime Minister of Japan, Mr. Kishida Fumio, arrived India on an official visit. During this visit, he held bilateral talks with Prime Minister Narendra Modi. This meeting is being held at a significant time when India and Japan are holding the presidencies of the G20 and G7, respectively.
Background -
- India and Japan share ‘Special Strategic and Global Partnership’.
- Friendship between the two countries has a long history rooted in spiritual affinity and strong cultural and civilisational ties.
Economic relations -
- Comprehensive Economic Partnership (CEPA) — India-Japan CEPA came into effect from 1 August 2011.
Bilateral trade —
- India was the 18th largest trading partner for Japan, and Japan was the 12th largest trading partner for India in 2020.
- Bilateral trade totalled US$ 20.57 billion during FY 2021-22. Exports from Japan to India during this period were US$ 14.39 billion and imports were US$ 6.18 billion.
- Japan’s exports to India were 2.35% of India’s total imports and India’s exports to Japan were 1.46% of India’s total exports.
- Investment — Cumulatively, from 2000 until March 2022, the Japanese investments to India have been around US$ 36.94 billion ranking Japan fifth among source country for FDI.
- Currency swap — In October 2018, India and Japan signed a deal for a USD 75-billion bilateral swap arrangement.
- Supply Chain Resilience Initiative (SCRI) — The Trade Ministers of India, Japan and Australia formally launched the SCRI in April 2021.
Official development assistance (ODA) -
- Japanese ODA supports India’s efforts for accelerated economic development, particularly in priority areas like power, transportation, environment and social sector.
- The Mumbai-Ahmedabad High Speed Rail, Western Dedicated Freight Corridor (DFC), DelhiMumbai Industrial Corridor (DMIC) with twelve industrial townships, Chennai-Bengaluru Industrial Corridor (CBIC) are some mega projects with Japanese cooperation on the anvil.
- Japan’s ODA disbursement to India in 2020-21 stood at about JPY 264 billion (approx USD 2.3 billion).
Defence and Security cooperation -
- In 2008, "the Joint Declaration on Security Cooperation between Japan and India" was issued.
- There are also various frameworks of security and defense dialogue between Japan and India including Foreign and Defense Ministerial Meeting (“2+2” meeting), annual Defense Ministerial Dialogue and Coast Guard-to-Coast Guard dialogue.
- In November 2019, the first ”2+2” meeting was held in New Delhi.
- In September 2020, the Agreement between the Japan and India Concerning Reciprocal Provision of Supplies and Services between the Self-Defense Forces of Japan and the Indian Armed Forces (so-called “Acquisition and Cross-Servicing Agreement” or ACSA) was signed.
- This agreement establishes a framework such as the settlement procedures for the reciprocal provision of supplies and services between forces of the two nations.
- India is only the second country after Australia with which Japan has such an agreement.
- Japan became a permanent member of the Malabar exercise in 2015. India and Japan also conduct joint military exercise named “Dharma Guardian” since 2018.
- Air forces of both the countries conducted first fighter jet exercise ‘Veer Guardian’ in Japan in January 2023.
Clean energy partnership -
- It was launched during the annual summit last year. This partnership aims to promote energy cooperation through diverse and realistic energy transitions utilising all energy sources and technologies to ensure energy security, carbon neutrality and economic growth.
Civil Nuclear Agreement -
- In November 2016, India and Japan signed a deal on nuclear energy. This was the first time that Japan signed such deal with a non-signatory of Non-Proliferation Treaty. The deal gives Japan the right to supply nuclear reactors, fuel and technology, to India.
Trade Receivables Discounting System (TReDS)
Reserve Bank of India (RBI) Governor recently said that the TReDS platform introduced in 2014 for MSMEs to finance or discount their invoices — finances around 35,000 factoring units (FUs) monthly.
About Trade Receivables Discounting System (TReDS) platform -
- It is an electronic platform for facilitating the financing/discounting of trade receivables of Micro, Small, and Medium Enterprises (MSMEs) through multiple financiers.
- These receivables can be due from corporates and other buyers, including Government Departments and Public Sector Undertakings (PSUs).
- Purpose — To allow MSME sellers to discount invoices raised against major corporations, which helps them manage their working capital demands. The platform enables MSMEs to receive payments more quickly.
Participants —
- Sellers, buyers, and financiers are the participants on a TReDS platform.
- Only MSMEs can participate as sellers in TReDS.
- Corporates, Government Departments, PSUs, and any other entity can participate as buyers in TReDS.
- Banks, NBFC - Factors, and other financial institutions, as permitted by the RBI, can participate as financiers in TReDS.
- RBI has not made it compulsory for any buyer, seller, or financier to participate in TReDS.
- The Government has made it compulsory for certain segments of companies to mandatorily register as buyers on the TReDS platform(s). The government directive, however, does not make it compulsory for these entities to perform transactions in TReDS.
How does TReDS work?
- Creation of a Factoring Unit (FU) - standard nomenclature used in TReDS for invoice(s) or bill(s) of exchange - containing details of invoices/bills of exchange.
- Acceptance of the FU by the counterparty - buyer or the seller, as the case may be;
- Bidding by financiers;
- Selection of best bid by the seller or the buyer, as the case may be;
- Payment made by the financier (of the selected bid) to the MSME seller at the agreed rate of financing/discounting;
- Payment by the buyer to the financier on the due date.
What are Trade receivables?
Trade receivables are defined as the amount owed to a business by its customers following the sale of goods or services on credit.
Trade Receivables Discounting System (TReDS)
Reserve Bank of India (RBI) Governor recently said that the TReDS platform introduced in 2014 for MSMEs to finance or discount their invoices — finances around 35,000 factoring units (FUs) monthly.
About Trade Receivables Discounting System (TReDS) platform -
- It is an electronic platform for facilitating the financing/discounting of trade receivables of Micro, Small, and Medium Enterprises (MSMEs) through multiple financiers.
- These receivables can be due from corporates and other buyers, including Government Departments and Public Sector Undertakings (PSUs).
- Purpose — To allow MSME sellers to discount invoices raised against major corporations, which helps them manage their working capital demands. The platform enables MSMEs to receive payments more quickly.
Participants —
- Sellers, buyers, and financiers are the participants on a TReDS platform.
- Only MSMEs can participate as sellers in TReDS.
- Corporates, Government Departments, PSUs, and any other entity can participate as buyers in TReDS.
- Banks, NBFC - Factors, and other financial institutions, as permitted by the RBI, can participate as financiers in TReDS.
- RBI has not made it compulsory for any buyer, seller, or financier to participate in TReDS.
- The Government has made it compulsory for certain segments of companies to mandatorily register as buyers on the TReDS platform(s). The government directive, however, does not make it compulsory for these entities to perform transactions in TReDS.
How does TReDS work?
- Creation of a Factoring Unit (FU) - standard nomenclature used in TReDS for invoice(s) or bill(s) of exchange - containing details of invoices/bills of exchange.
- Acceptance of the FU by the counterparty - buyer or the seller, as the case may be;
- Bidding by financiers;
- Selection of best bid by the seller or the buyer, as the case may be;
- Payment made by the financier (of the selected bid) to the MSME seller at the agreed rate of financing/discounting;
- Payment by the buyer to the financier on the due date.
What are Trade receivables?
Trade receivables are defined as the amount owed to a business by its customers following the sale of goods or services on credit.
Global Terrorism Index
The Institute for Economics and Peace (IEP) recently corrected its report related to Globalb Terrorism Index (GTI) 2023 after the Communist Party of India (CPI) was wrongly included in the list of deadliest terror groups of 2022.
About Global Terrorism Index -
- It is published annually by the Institute for Economics and Peace (IEP), a global think tank headquartered in Sydney, Australia
- The index provides a comprehensive summary of the key global trends and patterns in terrorism over the past 15 years.
- The report ranks 163 countries (99.7% of the world's population) on the impact of terrorism.
- Indicators — Include the number of terrorist incidents, fatalities, injuries, and hostages.
- The index is produced using data from TerrorismTracker of Dragonfly-- which provides event records on terrorist attacks since January 1, 2007 -- and other sources.
Highlights of Global Terrorism Index 2023 -
- Afghanistan retains the top spot on the list of the country impacted by terrorism. Afghanistan has topped for the fourth consecutive year.
- India ranked 13th on the index, marking only a marginal decrease from the previous year.
- Pakistan saw the second-largest increase in terror-related fatalities globally last year, with a total of 643 dead.
- Military people made up at least 55% of all casualties of terrorism
Butterfly EcoPark
The Butterfly EcoPark at Chottakhola, Tripura, close to the Trishna WildLife sanctuary is the first butterfly park in the northeast and is now a major attraction for tourists from different parts of the country and also Bangladesh.
About Butterfly EcoPark -
- It is nestled in a village near the India-Bangladesh international border in Tripura’s South district.
- According to wildlife and environment experts, butterflies are deemed to be indicators of a good ecological balance and healthy nature
- The park is near the endangered bison park at Trishna wildlife sanctuary and Indo-Bangla Maitri Park to commemorate the Bangladesh liberation war.
About the Trishna wildlife sanctuary -
- Trishna wildlife sanctuary is located in the state of Tripura.
- Flora — The vegetation of the sanctuary consists of four types of forest – the tropical semievergreen forest, the east Himalayan lower Bhanar Sal, the Moist mixed deciduous forest and the Savanah woodland.
- Fauna — The Indian Gaur (Bison), Deer, Hooklock Gibbon, Golden langur, Pheasants, Lalmukh Bandar, Wild Boar, Wild Cat, Leopard etc.