Weekly Current Affairs

Welcome to the Endeavor Editors’ Weekly Current Affairs Choicest Blog series. Get a weekly roundup – of news from business, economy, markets, policy, and more. A quick capsule format news summary and update to keep you abreast with all the latest current affairs.

1) International News and Global Economy

Russia warns of World War Three if Ukraine joins NATO

Calling Ukraine’s application for membership of NATO as propaganda, a key Russian official warned that the West understands the consequences of Ukraine joining NATO and it is guaranteed that Ukraine’s admission into NATO will escalate the current war to World War Three. The warning comes amid heavy shelling by Russia even in residential areas of Ukraine in reaction to what it claims is a “terrorist attack” by Ukrainian forces on the Kerch bridge, which connects the Russian mainland with the Crimean Peninsula. President Vladimir Putin has repeatedly chastised the US for driving NATO’s eastward expansion, particularly its courting of ex-Soviet republics such as Ukraine and Georgia, which Russia considers to be within its sphere of influence. On September 30, Ukraine President Volodymyr Zelenskyy announced Ukraine’s bid to fast-track the process of NATO membership as Russian President Vladimir Putin formally proclaimed the annexation of 18% of the territory of Ukraine. As all 30 members need to have a consensus regarding the inclusion of Ukraine, the membership of the country is not anywhere near for now.

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NATO countries to boost Ukraine’s missile defense

Iranian-made “kamikaze” drones hit regions around the Ukrainian capital, Kyiv, early on Thursday morning, the regional governor, Oleksiy Kuleba, said. The deputy head of the presidential office, Kyrylo Tymoshenko, said on Telegram that “critical infrastructure facilities” in the area had been hit.  Later reports said the attacks took place in the small town of Makariv, about 55 km (34 miles) west of the capital. No casualties were reported. Kyiv had largely been spared attacks in recent months until Russian forces launched massive missile strikes on Monday against civilian sites across the country. Since then, air raid sirens have sounded every day in the region.

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India abstains from the UN vote against Russia’s referenda in four Ukraine regions

India abstained in the UN General Assembly on a draft resolution on Wednesday that condemned Russia’s “illegal” referenda and attempts to annex parts of Ukraine, saying New Delhi’s decision is “consistent” with its “well thought out national position” and the country stands ready to support all efforts aimed at de-escalation.

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Putin proposes ‘gas hub’ plan to Turkey’s Erdogan | DW News

Russian President Vladimir Putin has put forward Turkey as a potential hub for Russian gas to third parties, including Europe. During a meeting with his Turkish counterpart Recep Tayyip Erdogan on the sidelines of a security conference in Kazakhstan, Putin also suggested setting up a natural gas exchange market in Turkey to determine prices.

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Core US inflation rises to a 40-year high in Sept, securing a big Fed hike

US consumer prices increased more than expected in September and underlying inflation pressures continued to build up, reinforcing expectations that the Federal Reserve will deliver a fourth 75-basis points interest rate hike next month. Despite the continued moderation as supply chains ease and oil prices retreat from the highs seen in the spring, inflation is running way above the Fed’s 2% target. Underlying inflation is being largely driven by higher costs for rental accommodation. Government data on Wednesday showed the weakest reading in producer core goods prices in nearly 2-1/2 years in September. The pass-through from producer to consumer inflation could, however, probably take a while. Some of the inflation pressures are coming from the tight labor market.

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What did UK’s mini-budget include and what has changed?

UK Prime Minister Liz Truss has unexpectedly reversed her stance on the government’s mini-budget after sacking Chancellor of the Exchequer Kwasi Kwarteng. The British government is under intense pressure to make changes after several days of market turmoil. Newly appointed Britain Finance Minister Jeremy Hunt announced on Saturday that a few taxes would go up and tough spending decisions were needed, according to a Reuters report.

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Amid Ukraine war, EU reaffirms €7 billion vow to restore global food security

Russia’s war in Ukraine has completed eight months, and yet there is no end in sight. Despite intense pushback from the West against Moscow, Russian president Vladimir Putin has clearly refused to relent. While world leaders have been flagging the possibility of the use of nuclear weapons, shortages of food and fuel have been among prime global concerns. On World Food Day, which commemorates the establishment of the Food and Agriculture Organization (FAO) of the United Nations, what was also highlighted was the crisis that millions faced due to the conflict. “Russia’s war of aggression against Ukraine dramatically exacerbated the global food crisis, pushing millions into poverty and hunger,” tweeted EU International Partnerships. The Directorate-General for International Partnerships is responsible for formulating the EU’s international partnership and development policy. “On World Food Day, we reaffirm our commitment to restoring global food security, the EU is mobilizing €7.7 billion until 2024 for partner countries,” it further wrote. Russia and Ukraine are said to together account for almost a third of the world’s export of wheat and barley.

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Biden administration drafts UNSC resolution to support the deployment of rapid action force to Haiti

The United States has drafted a United Nations Security Council resolution that would support the deployment of a rapid action force to Haiti immediately as the country faces widespread crises, a US official has confirmed. The effort appears to be an about-face for the Biden administration after a US official said earlier this week that it was “premature to talk about a US security presence” inside of Haiti. But it remains unclear exactly what role the US would play in this rapid action force. Meanwhile, the US Agency for International Development has deployed a disaster assistance response team to Haiti, following a short visit to the Haitian capital of Port au-Prince earlier this week by a high-level delegation dispatched by the White House.

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China’s Xi Jinping sets a goal of reuniting China with Taiwan | DW News

President Xi Jinping has opened his Communist Party’s congress. He addressed more than 2-thousand delegates from China’s only ruling political party. Xi presented his vision for the future of the world’s most populous nation. This includes his goal of reunifying the self-governing island of Taiwan, even if it means using force.

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Evin prison fire: Several dead after fire at Iran’s notorious detention center

Four prisoners have died and 61 have been injured following a major fire at Iran’s notorious Evin prison, according to an Iranian state news agency. Sources inside the prison – which is known for housing political prisoners – say the number of casualties is higher. Videos shared online showed flames and smoke at the site in Tehran, and gunshots and explosions could be heard. Iran has been gripped for weeks by anti-government protests. It is not yet known whether the situation at the prison is linked to the recent demonstrations. Those protests first erupted last month after the death of 22-year-old Kurdish Iranian Mahsa Amini in police custody. Officials said she died of a heart attack, but her family disputed this, saying she was beaten by the morality police.

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2) India

Karnataka hijab ban: Supreme Court delivers a split verdict, matter to be placed before CJI Lalit

The Supreme Court Thursday delivered a split verdict in the Karnataka hijab ban case with one of the judges upholding the March 15 high court order validating the ban and the other setting aside the HC ruling and calling wearing of the apparel a “matter of…choice”. With the two judge-bench divided in its view, the matter was directed to be placed before the Chief Justice of India U U Lalit for appropriate directions. Stating that wearing the hijab is not an essential religious practice in Islam and freedom of religion under Article 25 of the Constitution is subject to reasonable restrictions, a full bench of the Karnataka High Court had on March 15 dismissed a batch of petitions filed by Muslim girls studying in pre-university colleges in Udupi seeking the right to wear hijabs in classrooms.

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Supreme Court’s split verdict in hijab case: What does it mean?

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India and the US announced the launch of a new energy storage task force to support the clean energy transition

India and the United States on Friday announced the launch of a new energy task force to support the large-scale integration of renewable energy needed to support the clean energy transition. The announcement of the initiative, which will further strengthen the India-US partnership in the critical energy sector to an altogether new level, came following a bilateral meeting between Union Minister of Petroleum and Natural Gas Hardeep Singh Puri and US Energy Secretary Jennifer Granholm here. During the meeting, the two leaders underscored the critical importance of bilateral clean energy engagement to strengthen energy security and accelerate a clean, secure, and just energy transition.

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What is the Global Hunger Index and why is India trailing?

India has ranked 107th out of 121 countries in the Global Hunger Index (GHI) 2022, down from the 101st position the previous year. Jointly published by Concern Worldwide and Welthungerlife, the GHI lists countries by ‘severity’. Yemen has ranked in the lowest position at 121, while the top of the list is dominated by European nations including Croatia, Estonia, and Montenegro. Among Asian nations, China and Kuwait have ranked the highest. The GHI has been brought out almost every year since 2000; with this year’s report being the 15th one. A low score gets a country a higher ranking and implies better performance. With a score of 29.1, which falls in the ‘serious’ category of hunger, India was ranked behind its neighbors Nepal (81), Pakistan (99), Sri Lanka (64), and Bangladesh (84). India has been recording decreasing GHI scores over the years. In 2000, it recorded an ‘alarming’ score of 38.8, which was reduced to 28.2 by 2014. The country has started recording higher scores since then. While India has been consistently recording lower values for the four indicators, it started going up in 2014 for undernourishment and the prevalence of wasting in children. The proportion of undernourishment in the population went from 14.8 in 2014 to 16.3 in 2022, and the prevalence of wasting in children under five years jumped from 15.1 in 2014 to 19.3 in 2022.

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3) Economy

India may become the third biggest economy after the US and China in 5 years

In the next five years, India may become the third biggest economy after the United States and China, says International Monetary Fund’s World Economic Outlook database. As per the IMF, the South Asian country is most likely to reach the position two years earlier than initially expected, overtaking Germany and Japan. Also, India may supersede the United Kingdom by this year and become the fifth biggest economy, added the World Economic Outlook database. Looking at the numbers presented by the IMF, the per capita GDP of India will reach $3,652 in 2027 as compared to $2,466 in 2022. Considering India’s perspective to supersede Germany and Japan, the IMF’s report said that though inflation in India is high, but is not skyrocketing current account deficit high but is expected to moderate.

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4) Markets, Banking, and Finance

PM Modi launches 75 Digital Banking Units across 75 districts

Prime Minister Narendra Modi on Sunday launched 75 Digital Banking Units (DBUs) in 75 districts with the objective to promote financial inclusion. The setting up of 75 DBUs in 75 districts of the country was done to commemorate the 75 years of independence of the country. According to Prime Minister’s Office (PMO), DBUs will be brick-and-mortar outlets that will provide a variety of digital banking facilities to people such as the opening of savings accounts, balance-check, printing passbooks, transfer of funds, investment in fixed deposits, loan applications, stop-payment instructions for cheques issued, applications for credit and debit cards, tax and bill payment and nominations.

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RBI asks banks to set aside capital, provisions for unhedged FX exposure

The Reserve Bank of India (RBI) on Tuesday tweaked guidelines for banks on incremental capital and provisioning requirements in relation to unhedged foreign currency exposures, amid the weakness in the rupee vis-a-vis the US dollar. The rupee has depreciated about 10 percent against the US dollar thus far in 2022, and as a result, there has been greater scrutiny of firms’ unhedged exposure through borrowings in foreign currencies. Banks must determine the foreign currency exposure of all entities at least on an annual basis, the RBI said, stipulating that the exposures should be computed using relevant accounting standards. For this purpose, banks have to take into account items maturing or having cash flows over the next five years.

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5) Business

Centre hikes windfall gain tax on domestic crude oil; here’s how it will impact OMCs and consumers

The government on Saturday hiked the windfall tax on domestically produced crude oil by more than a third while doubling the rate on the export of diesel and re-introducing the levy on overseas shipment of jet fuel (ATF) in line with rising international oil prices. The tax on crude oil produced by firms such as state-owned Oil and Natural Gas Corporation (ONGC) was increased to Rs 11,000 per tonne beginning October 16 from Rs 8,000, a government notification showed.

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Discussions with Tatas for a possible merger of Vistara, Air India: Singapore Airlines

Singapore Airlines on Thursday said it is in confidential discussions with Tatas for a possible merger of Vistara and Air India. Tatas has a 51 percent stake in Vistara and the rest is with Singapore Airlines (SIA). Tatas is also the owner of Air India. In a regulatory filing, SIA said discussions with Tatas are ongoing and no definitive terms have been agreed upon between the parties. “The discussions seek to deepen the existing partnership between SIA and Tata, and may include a potential integration of Vistara and Air India,” the filing to the Singapore Stock Exchange said.

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Reliance sole bidder for Metro’s India business: Report

Mukesh Ambani-led Reliance Industries Ltd. (RIL) is in advanced discussions to acquire German firm Metro AG’s wholesale operations in India.  According to Bloomberg, a final decision could emerge as early as next month as Charoen Pokphand Group Co. is no longer actively in talks with Metro, leaving only Ambani’s Reliance to pursue the so-called cash-and-carry business. Metro entered the Indian market in 2003 and currently operates 31 wholesale distribution centers across the country, serving business customers only, according to its website. Its core clients include hotels, and restaurants as well as different types of corporates such as small retailers. Reliance is already the country’s biggest brick-and-mortar retailer, and a strong wholesale unit would further deepen its operations in India.

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Zoomcar inks merger pact with Innovative International Acquisition Corp

Car sharing platform Zoomcar on Friday said it has inked a merger agreement with Innovative International Acquisition Corp and subsequently become a publicly listed entity on Nasdaq. The transaction values the combined company at around USD 456 million. Upon closing of the transaction, the combined entity will be renamed Zoomcar Holdings, Inc and expects to list its common stock on Nasdaq. Founded in 2013, Zoomcar currently operates across more than 50 cities globally. Innovative is a blank check company incorporated as a Cayman Islands-exempted company for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses.

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6) Technology

Cryptocurrencies are under fire yet again as RBI builds a case for the issuance of CBDCs

The Indian central bank digital currency (CBDCs) may be able to provide the public with uses that private virtual currencies can provide, without the associated risks, and that is the key motivation for its issuance, said the Reserve Bank of India (RBI) in a concept note issued on CBDCs on Friday. While building the case for the issuance of CBDCs, RBI came down heavily on cryptocurrencies. RBI said that these private cryptocurrencies claim the benefit of decentralization and are being seen as an innovation that could result in the growth of decentralized finance (DeFi), thereby disrupting traditional financial systems. RBI added that private virtual currencies are not commodities or claims on commodities as “they have no intrinsic value.” It further said that private cryptocurrencies are inherently designed in such a way that they could bypass the established and regulated intermediation and control arrangements that play a crucial role in ensuring the integrity and stability of the monetary and financial ecosystem of any nation.

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‘Red flags in Byju’s financials’: MP Karti Chidambaram seeks ICAI review

Lok Sabha member Karti Chidambaram has asked the chartered accountants’ apex body Institute of Chartered Accountants of India (ICAI) to review the financials of the edtech startup. In a letter to ICAI President Debashis Mitra, the Parliamentarian said there are various red flags in the company’s financials for the 2020-21 period, PTI reported. On the expenses front, the letter said that 60% of the costs related to employees have been recognized as capital expenses rather than as operational costs. Citing various media reports, the Lok Sabha member said the company is not in a sound state of financial health and urged the ICAI to review its financial statements in the interest of consumers and employees.

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Big Blow to Meta: SC Greenlights CCI’s probe into WhatsApp

The Supreme Court has rejected Meta’s (previously Facebook) plea that challenged the competition watchdog’s probe into the messenger app WhatsApp.  The court stated that the competition commission of India (CCI) is an independent authority to consider any violation of the provisions of the Competition Act of 2002 and no interference is required by this court in the High Court order. The court added that CCI’s probe cannot be considered without jurisdiction and that if the competition watchdog is moving ahead with an investigation, the matter is to be considered on its own merits. That is, the Supreme Court has greenlighted CCI’s probe into WhatsApp’s updated privacy policy that alleges infringement of user privacy, sharing users’ data with Facebook, and examining WhatsApp’s abuse of dominance.

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7) Politics

BJP to go solo in Meghalaya assembly polls: Party state president

BJP, which is a partner of the ruling coalition in Meghalaya, will contest 60 seats in the next year’s assembly polls, state president Ernest Mawrie has said. Assembly polls in the state are expected early next year. The relationship between the saffron party and the National People’s Party (NPP) turned sour after BJP ‘s state vice president Bernard Marak was arrested for allegedly running a brothel. The BJP had described his arrest as a “political vendetta”. BJP national vice president and Meghalaya in-charge Chuba Ao had alleged that Marak was framed. In the last assembly polls in 2018, the saffron party contested 47 seats. BJP won two seats – Pynthorumkhrah (Alexander Laloo Hek) and South Shillong (Sanbor Shullai) in the last elections.

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Mulayam Singh Yadav, founder of Samajwadi Party, dies at 82

Mulayam Singh Yadav, Samajwadi Party founder and three-time chief minister of Uttar Pradesh, died in a private hospital Monday, his son Akhilesh said. He was 82. The veteran politician was being treated at the ICU of Medanta Hospital in Gurgaon. The hospital said in a bulletin Yadav was administered life-saving drugs. Yadav, born on November 22, 1939, was a senior Indian politician and the founder of the Samajwadi Party. He represented Mainpuri in the Lok Sabha. The former wrestler rose in UP politics in a period of intense social and political ferment after the 1970s. Emerging as a socialist leader, Mulayam soon established himself as an OBC stalwart, capturing a swathe of political space vacated by the Congress. He took oath as UP’s 15th CM in 1989, which marked the year when the Congress was voted out, failing to return to power in the state ever since.

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Languages panel recommendations and a fresh ‘Hindi imposition’ row

The 11th volume of the Report of the Official Language Committee headed by Home Minister Amit Shah, which was submitted to President Droupadi Murmu last month, has triggered angry reactions from the Chief Ministers of Tamil Nadu and Kerala, who have described the Report as an attempt by the Union government to impose Hindi on non-Hindi-speaking states. Members of the Committee, however, argued that their reaction was “misplaced” because media reports on the purported contents of the Report were “misleading”. The Report submitted to the President is confidential, they said. Sources close to the Committee said it has made around 100 recommendations, including that Hindi should be the medium of instruction in IITs, IIMs, and central universities in the Hindi-speaking states.

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8) Sports

IND vs SL, Women’s Asia Cup 2022 Final Highlights: Mandhana’s Fifty help India thrash Sri Lanka by 8 Wickets to clinch the title

India became the new Asian champions as they thrashed Sri Lanka by 8 wickets in the final on Saturday in Sylhet. The Women in Blue defeated the Lankan for the fifth time in an Asia Cup final.  India entered the game as the favorites but hardly anyone had thought that it would be this one-sided. Sri Lanka, who were in the finals after 14 years, never looked in the game. The batting line-up started to fall apart since the dismissal of their skipper. None of the Lankan batters could deal with the pressure as only 2 out of 11 batters scored in double digits. They saved themselves from getting bundled out but could only post 65 runs.

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Indian GM Arjun Erigaisi shocks Magnus Carlsen in Aimchess Rapid tourney

Indian Grandmaster Arjun Erigaisi on Sunday hogged the spotlight, beating world champion Magnus Carlsen in round seven of the preliminaries of the Aimchess Rapid online chess tournament. The 19-year-old Erigaisi, who had gone down to compatriot Vidit Santosh Gujrathi to make a losing start in the event, is currently in fifth place after eight rounds. The win over Norwegian superstar Carlsen in the seventh round early on Sunday was the Indian’s first over the world champion. Erigaisi won three straight games, beating Nils Grandelius (Sweden), Daniel Naroditsky (USA), and Carlsen before settling for a draw against Jan-Krzysztof Duda (Poland).

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9) Opinion

Bernanke won the Nobel, but is his Bubble about to burst?

Ben Bernanke will go down as one of the most influential U.S. Federal Reserve chairs ever, and many economists believe he deserved the Nobel prize in economics he was co-awarded Monday. Rarely, if ever, has an academic scholar’s work—in Bernanke’s case, he showed how failing banks caused the Great Depression—been put to the test in the real-world laboratory of the entire global economy. The massive policy shift initiated by Bernanke—what began as an emergency “break the glass” response 14 years ago—has, in turn, triggered new questions about financial stability. This emerging problem is part of Bernanke’s legacy as well. There are questions, too, about the huge too-big-to-fail banking problem that Bernanke and his collaborators at the time, mainly then-U.S. Treasury Secretary Timothy Geithner, did not address after the immediate storm of the financial crisis had passed—despite promises to do so.

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Will OECD’s Crypto framework pave the way for clear regulations in India?

The Organisation for Economic Co-operation and Development (OECD) recently submitted its report on the crypto-asset reporting framework (CARF) and a set of amendments to the common reporting standard (CRS) to the G20. Earlier in March, the OECD had released a consultation paper on ‘CARF and amendments to the CRS and sought comments on it. The framework has been published in accordance with the demand from various G20 member countries to enable the exchange of crypto-related information among the member countries in a standardized manner. India is also a member of the G20 and had earlier voiced the need for a global framework for effective monitoring of crypto markets. With the OECD recommendations, India may reconsider the imposition of 1% TDS on crypto transactions and may lower crypto tax from the current 30%, according to experts. The framework comes at a time when the crypto industry is facing regulatory uncertainty in the country. The Reserve Bank of India has been batting for a complete ban on private cryptocurrencies. Besides, the central bank is also planning to soon launch CBDC. As such, the framework has raised hopes for clear regulations and other reliefs within the crypto industry in India.

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The world cannot afford India to follow China’s manufacturing model, says Raghuram Rajan

Former RBI Governor Raghuram Rajan has batted for a services-led export model for India instead of following China’s manufacturing-led one in order to grow faster. He explained that services, unlike manufacturing, can be distributed across a country and reduce pressure on megacities that are turning into heat sinks and becoming increasingly unlivable. Such a distribution of services away from large cities will boost rural incomes and provide an alternative in case of loss of agricultural incomes. This is not the first time that Rajan has spoken about the benefits of a services-led growth model. In the past, he has cautioned against the perils of blindly following a China-led manufacturing growth model. He has quite often said India needs to focus on spending on education and skilling its youth to create jobs that will come from services rather than manufacturing.

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India unlikely to be hit as hard by the global recession as other countries: SBI chairman

The impact of a global recession, which is increasingly being feared by the International Monetary Fund and the World Bank, is unlikely to be as pronounced in India as compared to other countries, State Bank of India Chairman Dinesh Khara said. With a projected growth rate of 6.8 percent and inflation “much under control”, India is doing reasonably well, Khara said. “Majorly, it (India) is an inward-looking economy in terms of demand because a significant component of the GDP is essentially addressed to the domestic economy. So, from that point of view, I think it (global recession) will have an impact but it won’t be as pronounced as perhaps (it will be on) other economies which are fully coupled with the globe,” he said.

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Gen Bajwa in DC, US envoy, German FM statements on Kashmir, show why Pakistan can’t be isolated

The US ambassador visits Pakistan-occupied Kashmir & refers to it as ‘Azad Jammu & Kashmir’, German foreign minister says the UN could play a role in Kashmir & Pakistan’s Army Chief spends nearly a week in Washington. In this episode, Shekhar Gupta explains why Pakistan cannot be isolated or ignored and where it stands right now.

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10) Weekly special

Growth Vs Vulnerability: Why Indian Ecommerce Players need to focus on Cybersecurity

According to a recent analysis by Inc42, the e-commerce market is set to cross the $400 Bn mark by 2030 — growing at a compound annual growth rate (CAGR) of 18.9% between 2022 to 2030 — while D2C, the most prominent sub-segment in this market, will have an estimated value of $302 Bn. These are ambitious estimates, but they also underline how tempted cybercriminals will be to take control of such a massive market. As e-commerce takes over Tier 2 and Tier 3 cities, there should be a robust and comprehensive set of solutions that can help businesses counter the threats of cyberattacks prevalent in specific sectors and the overall market.

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11) Did you know?

What is a ‘biscuit’ in US’ nuclear weapons launch process?

First, let us clarify what a “nuke button” is. Unlike the images the words evoke, there is not one “button” or level that can be pushed or pulled to launch an attack. Instead, the US President has a “nuclear Football”, a black attached case that contains all the top secret and classified codes and plans that enable a president to authorize nuclear strikes. It also contains a so-called “menu” of targets across the world that the resident can pick from. Meanwhile, Football isn’t the only so-called “nuke button”. The President also has complete and omnipresent access to the “biscuit”, a keycard-like object that contains “gold codes” using which a President can identify himself and order a strike.  Both the football and biscuit together form important components of the “nuke button”.

For details visit here.

With that, we come to the end of our Weekly Current Affairs October 2022 -Week 3. We hope you have liked it. Write your feedback in the comments below and let us know if there is anything else you would like us to cover.

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