UPSC Prelims Bits Today 13-09-2022

In the ''UPSC Prelims Bits Today'' article, we focus on UPSC Preliminary exam-oriented current affairs & prepare an easy-to-read and easy-to-understand digest from leading National Newspapers.

Table of Contents

”UPSC Prelims Bits Today” is every day published in the morning between 11:00 AM to 12:00 Noon and contains selective current affairs articles. ”UPSC Prelims Bits Today” covers various topics from UPSC Prelims Syllabus and is very helpful and time managing for UPSC Aspirants. The framing of this daily current affairs compilation article is easy to read and understandable also.

In the ”UPSC Prelims Bits Today” article, we focus on UPSC Preliminary exam-oriented current affairs covering various sections from leading National Newspapers, PIB, and other various official sources.

Windfall Tax

Why in news?

The Indian government will once again slash windfall gain tax in the upcoming fortnightly review.

What is windfall gain tax?

A windfall gain tax is imposed by the government on a company When a corporate gains from something that it can’t control or are responsible for, that financial gain is windfall profits.
In simpler words, a windfall gain tax is a higher tax rate on gains that result from a sudden windfall gain to a particular organization or industry, usually as an aftermath of geo-political disturbance, natural disaster or war that creates uncommon spikes in demand or supply interruptions. Ukraine and Russia conflict is a prime example.
The Windfall gain tax counts to the government’s income.
For example, In May 2022, the government of India slashed the excise duty of Rs 8 and Rs 6 per litre of petrol and diesel, respectively to control inflation.
To compensate for the losses the windfall tax on crude production was gauged to generate Rs 650 billion in revenue and a tax of Rs 527 billion if implemented for a full year.

IBM Quantum Network

Why in news?

The Indian Institute of Technology Madras has become the first Indian institution to join the IBM Quantum Network.

What is IBM Quantum Network?

Quantum computing marks an exponential advance in computing unlike any preceding it.
Since launching its Quantum Network initiative in 2017, IBM Research has been working with more than 40 Fortune 500 companies, academic institutions, research labs and startups worldwide to advance the state-of-the art in quantum computing technology for commercial use.
The IBM Quantum Network partners with early adopter, innovative organizations, offering access to IBM’s most-powerful quantum computing systems through the cloud.
Only through this exchange of ideas, research and testing will quantum computing reach its full potential, powering breakthroughs that lead to new medicines and materials as well as advanced business and financial models.

Indo-Pacific Economic Framework

Why in news?

India stayed out of the joint declaration on the trade pillar of the U.S.-led Indo-Pacific Economic Framework ministerial meet in Los Angeles.

What is IPEF?

IPEF is a grouping of 14 countries which account for 40% of global GDP and marks the US’s pivot to the Indo-Pacific region to counter China’s dominance.
Trade is one of the four pillars of this bloc that aims to enhance supply chain resilience, sustainability, inclusiveness, economic growth, fairness and competitiveness.

What is IPEF Trade Pillar?

In the Trade Pillar, the IPEF partners will seek high-standard provisions in areas that are foundational to resilient, sustainable, and inclusive economic growth, including labour, environment, digital economy, agriculture, transparency and good regulatory practices, competition, inclusivity, trade facilitation, and technical assistance and economic development.

Why India stayed out of the trade pillar?

India’s decision is a step in the right direction as it is unsure of making binding commitments and hasty pledges on sensitive issues like the digital economy, data flows, labour and environment standards and public procurement which the trade pillar entails.
India’s concern is that it will undermine its still-evolving policies on the digital economy and data privacy.

IFSCA FinTech Incentive Scheme, 2022

Why in news?

The International Financial Services Centres Authority (“Authority” or “IFSCA”), with an overall objective to promote the establishment of a world-class FinTech Hub, at GIFT International Financial Services Centre (IFSC) in India, launched the IFSCA (FinTech Incentive) Scheme for providing financial support to FinTech activities in the form of specific grant(s).

What is IFSCA?

IFSCA is the unified regulator for the development and regulation of financial products, financial services and financial institutions in International Financial Services Centres (IFSCs) in India.

What is GIFT City?

GIFT city (Gujarat International Finance Tec-City) was envisaged as an integrated hub for financial and technology services not just for India but for the world.

What is IIBX?

India International Bullion Exchange (IIBX), India’s first international bullion exchange, is also there in GIFT-IFSC.

What is NSE IFSC-SGX Connect?

NSE IFSC-SGX Connect is a framework between NSE’s subsidiary in the GIFT International Financial Services Centre (IFSC) and Singapore Exchange Limited (SGX).
Under Connect, all orders on NIFTY derivatives placed by members of the Singapore Exchange will be routed to and matched on the NSE-IFSC order matching and trading platform.