29th October Current Affairs
October 29, 2020
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October 31, 2020
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30th October Current Affairs

National Authority for Recycling of Ships

In News:

The Centre has notified the directorate general of shipping as the National authority for recycling of ships.

The notification was issued under the section 3 of the Recycling of Ships Act, 2019.

Roles and functions:

As an apex body, DG Shipping is authorized to administer, supervise and monitor all activities relating to ship recycling in the country.

It will also be the final authority for the various approvals required by the ship-recycling yard owners and state governments.

Hong Kong Convention for Ship Recycling:

Under Ship Recycling Act, 2019, India has acceded to Hong Kong Convention for Ship Recycling under International Maritime Organization (IMO).

IMO adopted the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships in 2009.

The guidelines are aimed at ensuring that ships, being recycled after reaching the end of their operational lives, do not pose any unnecessary risks to human health, safety and the environment.

Please note, the Convention is yet to come into force because it has not been ratified by 15 nations, representing 40 per cent of the world merchant shipping by gross tonnage (capacity) and a maximum annual ship recycling volume of not less than 3 per cent of the combined tonnage of the countries.

Recycling of ships in India and neighbours:

India is the largest ship-breaking player in the world, recycling around 70 lakh gross tonnage every year, followed closely by Bangladesh.

Pakistan and China are the third and fourth largest players.

Around 800 vessels are sent for breaking every year around the world. India accounts for around 30% of that work, with an average 250 ships recycled majorly at centre in Alang, Gujarat.

Comparison between India, Bangladesh per capita GDP

In News:

This comparison is based on the International Monetary Fund’s latest update on the World Economic Outlook.

Key findings:

In 2020, growth of India’s gross domestic product (GDP) will witness a contraction of over 10%.

On average, India’s per capita GDP has been 24 per cent higher than Bangladesh’s during the last five years.

But, in 2020, the per capita income of an average Bangladeshi citizen would be more than the per capita income of an average Indian citizen (This happened once in 1991 too). India’s per capita GDP, in nominal US dollar terms, is projected to be $1,876.53 in 2020, lower than $1,887.97 projected for Bangladesh.

What is Per Capita Income?

It is arrived at by dividing the total GDP by the total population.

Three reasons why India’s per capita income has fallen below Bangladesh this year:

Growth rate: Both countries have been growing faster in 2004. But, since 2017 onwards, India’s growth rate has decelerated sharply while Bangladesh’s has become even faster.

Population growth: In the last 15 years, India’s population grew faster (around 21%) than Bangladesh’s population (just under 18%).

The most immediate factor was the relative impact of Covid-19 on the two economies in 2020. While India’s GDP is set to reduce by 10%, Bangladesh’s is expected to grow by almost 4%.

What helped Bangladesh stay ahead?

A key driver of growth has been the garment industry where women workers gave Bangladesh the edge to corner the global export markets from which China retreated.

The structure of Bangladesh’s economy is such that its GDP is led by the industrial sector, followed by the services sector. Both these sectors create a lot of jobs and are more remunerative than agriculture.

Over the past two decades, Bangladesh improved on several social and political metrics such as health, sanitation, financial inclusion, and women’s political representation.

On financial inclusion, according to the World Bank’s Global Findex database, while a smaller proportion of its population has bank accounts, the proportion of dormant bank accounts is quite small when compared to India.

Bangladesh is also far ahead of India in the latest gender parity rankings.

It has performed well in the Global Hunger Index too.

What about other neighbours?

China’s per capita GDP in 2020 is projected to be $10,839.43, Nepal and Sri Lanka, are projected to be $1,115.56 and $3,697.89.

What next then?

The IMF’s projections show that India is likely to grow faster next year and in all likelihood again surge ahead. But, given Bangladesh’s lower population growth and faster economic growth, India and Bangladesh are likely to be neck and neck for the foreseeable future in terms of per capita income.

India designated Vice-Chair of OECD Working Group on GLP

In News:

India has been designated the ‘Vice-Chair’ of Good Laboratory Practice (GLP) Working Group of the Organisation for Economic Co-operation and Development (OECD).

What is GLP?

Good Laboratory Practice (GLP) is a quality system, which has been evolved by Organisation for Economic Co-operation and Development (OECD) to ensure that safety data generated on various chemicals like industrial chemicals, pharmaceuticals (Human and Veterinary), agrochemicals, cosmetic products, food/ feed additives, and medical devices, etc., can be relied upon by regulatory authorities.

About the National GLP Compliance Monitoring Authority (NGCMA):

The Department of Science and Technology (DST), Government of India, established the National GLP Compliance Monitoring Authority (NGCMA) with the approval of the Union Cabinet on April 24, 2002.

NGCMA is the National body which grants GLP certification to test facilities (TFs) conducting safety studies on new chemicals of the above-mentioned categories in accordance with OECD Principles of GLP and OECD Council norms.