India Current Affairs - 2020

Sino-Indian Digital Collaboration Plaza

The Sino-Indian Digital Collaboration Plaza (SIDCOP) has been launched by the National Association of Software and Services Companies (NASSCOM) in association with Municipal Governments of Guiyang and Dalian.

About the SIDCOP

The initiative aims to bring Indian IT companies and Chinese enterprises closer to each other on a single AI enabled platform. This platform will be managed by a joint venture comprising of one Indian and Chinese company.

The initiative aims to encash the expertise of Indian IT enterprises in business transformation and operational optimization by using IT tools in complex business environments. Indian IT enterprises are successfully serving many international clients to transform their businesses and globalize and revolutionize with changing times.

The SIDCOP offers a boundary-less marketplace for Chinese enterprises in order to assist them in operational optimization and adopting industry best practices in business solutions by connecting with Indian enterprises.

National Association of Software and Services Companies (NASSCOM)

NASSCOM is a not-for-profit industry association and is the apex body for the Indian IT-BPM industry. The membership of the NASSCOM is open for Companies registered in India and are focused on providing IT-BPM products and services.

NASSCOM aims to make sure that service quality and enforcement of Intellectual Property Rights have been properly implemented in the Indian software and BPM industry.

Cabinet approves Currency Swap Agreement with Japan

The Union Cabinet has approved India’s Currency Swap Agreement with Japan. The $75-billion bilateral currency swap arrangement is a milestone in mutual economic cooperation and special strategic and global partnership between two countries.

Currency Swap Agreements

A Currency swap agreement is a foreign exchange agreement between two parties to exchange a given amount of one currency for another and, after a specified period of time, to give back the original amounts swapped.

How Currency Swap Agreement can benefit India?

The currency swap agreement can be beneficial to India in the following ways:

  • The currency swap facilities make it easier for India to pay for its imports. This aids in addressing the challenge of depreciation.
  • Since the Currency swap agreement involves trading in local currencies. Countries pay for imports and exports through their own currencies rather than involving a third country currency.  This does away with the charges involved in multiple currency exchanges.
  • The currency swap makes it easier to improve liquidity conditions.
  • Currency swap agreements help in saving for a rainy day when the economy is not looking in good shape.
  • The swap agreements also contribute towards stabilising the country’s balance of payments (BoP) position.
  • The agreement aids in improving the confidence in the Indian market.
  • Together with ensuring that the agreed amount of capital is available to India, it also brings down the cost of capital for Indian entities while accessing the foreign capital market.

The Currency Swap Agreement was concluded between Prime Minister Narendra Modi and Japan’s Prime Minister Shinzo Abe during the summit level meeting at Yamanashi, Japan.