January 25, 2024 | Your One-Stop Solution for Daily Preparation
The Insolvency and Bankruptcy | Explained
The Insolvency and Bankruptcy Code (IBC) of 2016, enacted in India, marks a significant milestone in the country's legal framework, aiming to streamline and expedite the resolution of insolvency cases for individuals and corporations. Bankruptcy, a legal state where an entity or individual faces an inability to repay debts, prompted the creation of the IBC to establish a unified and effective insolvency resolution process
Highlights of the Day
1.India Approves Advanced Three-Drug Regimen to Accelerate Leprosy Eradication by 2027
The Central government has approved a new three-drug regimen for leprosy treatment, replacing the existing two-drug regimen, based on global scientific research. The aim is to halt leprosy transmission at the sub-national level in India by 2027, aligning with UN Sustainable Development Goals. The World Health Organization will supply the revised drug regimen from April 1, 2025. The treatment duration for Pauci-Bacillary cases will be six months, and for multi-bacillary cases, it will be 12 months. The new approach is considered a significant step toward eradicating leprosy in India, with the WHO providing free multi-drug therapy[1].
2. French President Macron's Symbolic Visit to Jaipur: A Prelude to Republic Day Celebrations
French President Emmanuel Macron's visit to Jaipur includes a 'shobha yatra' with Prime Minister Narendra Modi, emphasizing hospitality during the Republic Day celebrations. Jaipur, the first stop on his India visit, holds symbolic significance. The visit will feature visits to iconic sites, including Amber Fort and Jantar Mantar. Unlike previous instances, Macron may not deliver a speech during the procession. The visit aims to strengthen Indo-French ties, with Macron attending the Republic Day parade in Delhi and concluding with a meeting with President Droupadi Murmu before his departure[2].
3.Diplomatic Engagement: U.S. Officials Visit Delhi to Discuss Bilateral Ties, Quad Summit, and Energy Cooperation
Top U.S. diplomats, including Assistant Secretary of State Donald Lu and Assistant Secretary of State for Energy Resources Geoffrey Pyatt, are set to visit Delhi to discuss bilateral issues, energy cooperation, and Quad Summit dates with Indian officials. The visit aims to strengthen ties amid speculation of a 'pause' in relations. The Quad Summit's timing remains uncertain, with both the U.S. and India in election seasons. The discussions will also address shared agendas on energy transition and security. The visit follows the U.S. declining India's Republic Day invite, raising concerns about the bilateral relationship[3].
4. HSBC Flash India PMI Signals Strong Private Sector Rebound in January 2024
The HSBC Flash India PMI for January indicates a robust rebound in private sector industrial and services activity, with the Composite PMI Output Index reaching 61, the highest in four months. New orders rose significantly, marking a six-month high, reflecting the strongest economic activity in the private sector since September 2023. Despite operational challenges, firms hired additional workers due to increased business confidence. Both manufacturing and services sectors grew, with business services expanding at the fastest rate in four months. The inaugural flash results also highlighted heightened cost pressures, but firms raised selling prices to a smaller extent[4].
5.Record High Liquidity Deficit Challenges Indian Banking System
The banking system in India is facing a record high liquidity deficit of Rs 3.4 lakh crore due to reduced government spending, higher tax outflows, and slower deposit growth. The deficit is attributed to a decline in foreign portfolio investments and a shift of retail deposits to mutual funds. Analysts expect the Reserve Bank of India (RBI) to address the liquidity shortage through permanent measures like open market operations (OMO) rather than temporary solutions. The deficit is driven by deposits growing at a slower pace than credit, prompting the RBI to maintain liquidity scarcity to counter consumer price-based inflation exceeding the 4% target[5].
Source: The Hindu | TOI
Practice Questions for Prelims
=Q1: Consider the following statements about the Election Commission of India:
I. Election Commission is a constitutional body.
II. The Chief Election Commissioner and other Election Commissioners are appointed by the President of India.
III. The Election Commission conducts elections only for the offices of the President and Vice President of India.
a) Only I
b) I and II
c) Only II
d) II, and III
Q2: Which of the following statements about Dark Matter is correct?
I. Dark Matter constitutes about 27% of the universe.
II. It interacts with electromagnetic forces and emits visible light.
III. The existence of Dark Matter was first proposed by Albert Einstein.
a) Only I
b) I and II
c) I and III
d) I, II, and III
Q3: Consider the following statements about the Kuchipudi dance form:
I. Kuchipudi originated in the state of Andhra Pradesh.
II. It incorporates both Tandava (masculine) and Lasya (feminine) elements.
III. Kuchipudi is exclusively performed by female dancers.
a) Only I
b) I and II
c) I and III
d) I, II, and III
Q4: The term ‘Balance of Payments’ includes which of the following components?
a) Trade balance
b) Budget deficit
c) National debt
d) Unemployment rate
Q5: The Andaman and Nicobar Islands are separated by which channel?
a) Ten Degree Channel
b) Eight Degree Channel
c) Palk Strait
d) Nine Degree Channel
Today’s Question for Mains Answer Writing
Examine the key provisions and impact of the Insolvency and Bankruptcy Code (IBC) in addressing corporate insolvency challenges. Discuss the significance of recent amendments and evaluate the effectiveness of the IBC in promoting a streamlined insolvency resolution process.
Need help in writing or evaluation?
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