Current Affairs - December, 2018

Latest Current Affairs December, 2018 with Current Affairs, news summary on current events of National and International importance of December, 2018 for Banking, SSC, CLAT, UPSC, State PCS, IBPS, Railways and other Competitive Examinations.

PDF Compilation of these updates can be downloaded from This Link

New norms for FDI in e-commerce

The new norms for the foreign direct investment (FDI) in e-commerce, bars e-commerce firms from selling products of entities in which they have an equity stake.

Why the new norms?

The new norms are brought in by the government to plug-in some loopholes like:

  • To bypass the rules which restricted large sellers on platforms such as Flipkart and Amazon from contributing more than a quarter of sales, online retailers had set up structures to get around those loopholes by mandating other sellers to buy from those large sellers and then, in turn, sell those products on e-marketplaces.
  • Large sellers formed multiple entities, which sold their products separately on online marketplaces.
  • The small traders were complaining that deep discounts offered by the likes of Amazon and Flipkart are driving them out of business.
  • The new norms aim to tackle the anti-competitive behaviour by e-commerce entities and to ensure that there is no wrong subsidization and the marketplace remains neutral to all vendors.

How will it affect e-commerce companies?

The impacts of the new norms are:

  • The e-commerce companies like Amazon and Flipkart would be adversely affected because Amazon has several such joint ventures, including Cloudtail and Appario. Even Flipkart has exclusive partnerships with top smartphone brands such as Xiaomi and Oppo. The new norms will adversely impact their business models.
  • The critics blame that the new norms are not in sync with the spirit of competition and free market economy because Only those exclusive arrangements that have an appreciable adverse effect on competition are prohibited under the Competition Act.

The new norms are welcomed by stating that the new norms will enable a level- playing field for all sellers especially MSMEs and help them leverage the reach of e-commerce.

Month: Categories: Business, Economy & Banking

Tags:

Bhutanese PM on a 3 day visit to India

Prime Minister of Bhutan Lotay Tshering arrived in India on 27th December for a three-day visit. The Visit is significant because it is taking place during the Golden Jubilee year of the establishment of formal diplomatic relations between the two countries.

The Bhutanese PM was accorded ceremonial reception at the forecourt of Rashtrapati Bhavan. He would pay homage to Father of the Nation Mahatma Gandhi and hold talks with Prime Minister Narendra Modi.

India-Bhutan Diplomatic Relations

The diplomatic relations between India and Bhutan were established in 1968. India established a special office of India in Thimphu in 1968. Prior to this, Indian diplomatic relations with Bhutan were looked after by Indian  Political Officer in Sikkim.

The India-Bhutan bilateral relations are governed by the Treaty of Friendship and Cooperation signed in 1949 between the two countries. The treaty was revised in February 2007. The India-Bhutan Friendship Treaty together with reflecting the contemporary nature of our relationship lays the foundation for their future development in the 21st century.

The Golden Jubilee of the establishment of formal diplomatic relations between India and Bhutan is being celebrated in the year 2018.

Lotay Tshering

Doctor by profession Lotay Tshering is a Bhutanese politician who is the current Prime Minister of Bhutan. He is also the president of the political party, Druk Nyamrup Tshogpa since 14 May 2018. Lotay Tshering is the 3rd democratically elected Prime Minister of Bhutan.

Month: Categories: International

Tags:

Advertisement