GS Paper 2: Structure, Organization and Functioning of the Executive and the Judiciary
Prelims exam: Kangaroo Court
Mains exam: Impact of Kangaroo courts on justice and judicial system
Why in News
Chief Justice of India N V Ramana has said “kangaroo courts” run by the media are causing harm to the health of the democracy.
What is a Kangaroo court?
• The phrase” Kangaroo Court” is used against a judicial system where the judgement against the accused is usually predetermined.
• Moreover, the system does not work on the standards of law or justice.
• In Kangaroo Court, the procedure is only conducted as a formality.
• Kangaroo Courts are known for working against the phrase” innocent until proven guilty”.
• The court does not allow to appeal against its judgement.
The origin of Kangaroo Court
• The Kangaroo is a famous animal only found in Australia.
• There are no records, suggesting the origin of the phrase Kangaroo Court.
• However, the term is reportedly found in a magazine written by Philip Paxton around 1853 in his article” A Stray Yankee in Texas”.
• According to the reports, the Kangaroo Courts were common during the Stalin era in the Soviet Union, famous as the” Moscow Trails” of the Soviet Great Purge”.
International Financial Services Centre Association (IFSCA).
Establishment of IFSCA
• It has been established under the International Financial Services Centres Authority Act, 2019.
• It is headquartered at GIFT City, Gandhinagar in Gujarat.
Role of IFSCA
• The IFSCA is a unified authority for the development and regulation of financial products, financial services and financial institutions in the International Financial Services Centre (IFSC) in India.
• At present, the GIFT IFSC is the maiden international financial services centre in India.
• Prior to the establishment of IFSCA, the domestic financial regulators, namely, RBI, SEBI, PFRDA and IRDAI regulated the business in IFSC.
India’s first global bullion exchange
GS Paper 3: Indian Economy
Prelims exam: IIBX, Bullion, IFSCA, BDR
Why in News
The Prime Minister launched India’s first bullion exchange, India International Bullion Exchange (IIBX), in GIFT city in Gujarat.
India International Bullion Exchange (IIBX)
• IIBX is India’s first International Bullion Exchange set up at the GIFT City, Gandhinagar.
• The International Bullion Exchange shall be the Gateway for Bullion Imports into India, wherein all the bullion imports for domestic consumption shall be channelized through the exchange, as per a government’s notification.
• The exchange will be open for jewellers with a net worth of Rs 25 crore and above to participate.
• NRIs and institutes will also be eligible to participate in the exchange after registering with the International Financial Services Centre Association (IFSCA).
Who will regulate IIBX?
International Financial Services Centres Authority (IFSCA) is the regulator of IIBX.
Significance of IIBX
• The exchange ecosystem is expected to bring all the market participants at a common transparent platform for bullion trading and provide an efficient price discovery, assurance in the quality of gold, enable greater integration with other segments of financial markets and help establish India’s position as a dominant trading hub in the World.
• IIBX offers a diversified portfolio of products and technology services at a cost which is far more competitive than the Indian exchanges as well as other global exchanges in Hong Kong Singapore, Dubai, London and New York.
What is a bullion?
• Bullion refers to physical gold and silver of high purity that is often kept in the form of bars, ingots, or coins.
• Bullion can sometimes be considered legal tender
• It is often held as reserves by central banks or held by institutional investors.
Bullion Spot Delivery Contract and Bullion Depository Receipt (BDR)
• Bullion depository receipts (BDR) with underlying bullion and bullion spot delivery contract can be issued and traded in International financial service centres (IFSC) such as GIFT-City, Gujarat.
• BDR and bullion spot delivery contract are defined as “securities” under the Securities Contracts (Regulation) Act, 1956.
How will IIBX work?
• Registered jewellers and traders will be able to sell and buy physical gold and silver in the exchange. For this, they will have to become a trading partner or a client of an existing trading member.
• A branch or a subsidiary needs to be opened with IFSC for the same.
• The jewellers who do not have a physical presence in India will also be able to transact the metals, but they will not be allowed to connect with a client under them.
Gujarat International Finance Tech-City GIFT City
GS Paper 3: Indian Economy
Prelims exam: GIFT City
Mains exam: GIFT city and its significance for the economy
Why in News
“Integration with the global markets and supply chain is our major agenda,” Prime Minister Modi said, inaugurating a raft of initiatives. “GIFT City is an important gateway to it. This occasion is an important event when we are celebrating Azadi ka Amrit Mahotsav. This will help make India a financial superpower.”
What is GIFT City?
• GIFT (Gujarat International Finance Tec-City) is located in Gandhinagar, Gujarat.
• It consists of a multi-service Special Economic Zone (SEZ), which houses India’s first International Financial Services Centre (IFSC) and an exclusive Domestic Tariff Area (DTA).
• The social infrastructure in the city includes a school, medical facilities, a proposed hospital, GIFT City business club with indoor and outdoor sports facilities.
• It also includes integrated well-planned residential housing projects making GIFT City a truly “Walk to Work” City.
• GIFT City is a new Financial & Technology Gateway of India for the World.
• Strategic Location
• Integrated Development (Office, Residential & Institutional)
• Multi Services Special Economic Zone (SEZ)
• India’s 1st International Financial Services Centre (IFSC)
• Smart, Sustainable & Green Infrastructure
• Single Window Clearance
• Quality of Life
• Talent availability
• Developing the country as a hub of international financial services: Central Government’s proactive support to develop the country as a hub of international financial services, the GIFT City has emerged as the preferred location for national and multinational firms.
• Increase in Investment: Tax exemptions also make it lucrative for investment.
• Job creation: As per various studies, lakhs of jobs will be created.
o A study carried out in 2007 by M/s Mckinsey & Co had predicted that the GIFT City project will generate 10 lakh direct jobs by the year 2020.
• Infrastructural development: Infrastructure plays a pivotal role in supporting the business environment and quality of life in
• Technological advancement: A judicious combination with the latest technology and global best practices in infrastructure service delivery are in place.
Core sector output expands by 12.7%
GS Paper 3: Indian Economy
Prelims exam: Core Industries, IIP and ICI
Why in News
India’s eight core sectors’ output growth moderated to 12.7% in June, from 18.1% in May, with all sectors except crude oil registering an uptick in production.
What is in the news?
• India’s eight core sectors’ output growth moderated to 12.7% in June, from 18.1% in May, with all sectors except crude oil registering an uptick in production.
• Coal, cement, electricity and refinery products rose 15% or more, compared with the June 2021 output levels, while natural gas (1.2%), steel (3.3%) and fertilizers (8.2%) grew at a milder pace.
• Crude oil output dropped 1.7% from a year earlier, returning to contractionary territory after recording the first uptick in several months this May.
• The Commerce and Industry Ministry also revised the index of eight core industries for March and May.
• Core sectors’ growth in March was pared to 4.8% from 4.9% estimated earlier, while for May, it was revised higher at 19.3% from the previous estimate of 18.1%.
Core sector industries
• Core Industries (core sectors) of the economy are the main or the key industries in the economy.
• There are 8 such sectors in India:
o Crude oil
o Natural gas
o Refinery products
Index of Eight Core Industries (ICI) & Index of Industrial Production (IIP)
Index of Eight Core Industries
• The monthly Index of Eight Core Industries (ICI) is a production volume index.
• ICI measures collective and individual performance of production in selected eight core industries viz. Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizers, Steel, Cement and Electricity.
• Prior to the 2004-05 series six core industries namely Coal, Cement, Finished Steel, Electricity, Crude petroleum and Refinery products constituted the index basket.
• Two more industries i.e., Fertilizer and Natural Gas were added to the index basket in 2004-05 series. The ICI series with base 2011-12 will continue to have eight core industries.
• Components covered in these eight industries for the purpose of compilation of index are as follows:
o Coal – Coal Production excluding Coking coal.
o Crude Oil – Total Crude Oil Production.
o Natural Gas – Total Natural Gas Production.
o Refinery Products – Total Refinery Production (in terms of Crude Throughput).
o Fertilizer – Urea, Ammonium Sulphate (A/S), Calcium Ammonium Nitrate (CAN), Ammonium chloride (A/C), Diammonium Phosphate (DAP), Complex Grade Fertilizer and Single superphosphate (SSP).
o Steel – Production of Alloy and Non-Alloy Steel only.
o Cement – Production of Large Plants and Mini Plants.
o Electricity – Actual Electricity Generation of Thermal, Nuclear, Hydro, imports from Bhutan.
Index of Industrial Production
• The Index of Industrial Production (IIP) is an index for India which details out the growth of various sectors in an economy such as mineral mining, electricity and manufacturing.
• The all India IIP is a composite indicator that measures the short-term changes in the volume of production of a basket of industrial products during a given period with respect to that in a chosen base period.
Difference between the two