Investment 101: Understanding the Basics of Finance

Amid escalating tensions between the European Union (EU) and supplier countries at the World Trade Organization (WTO) regarding the Brussels’ Carbon Border Adjustment Mechanism (CBAM), Indian Commerce Minister Piyush Goyal stated on Friday that India will respond to such unjust taxes.

India is developing its own carbon tax mechanism to penalize imports from developed countries for their historical carbon emissions that have significantly contributed to global warming.

Goyal, speaking at an industry event, expressed confidence in India’s ability to address the CBAM issue and find solutions. He emphasized that India will retaliate against unfair taxes, citing previous successful resolutions of WTO disputes with the US.

The EU’s carbon tax, meant to impose tariffs on emissions in goods produced outside Europe, is expected to impact Indian metal exports valued at over $8 billion annually starting in 2026.

A transitional period for CBAM began on October 1, 2023, and will conclude on December 31, 2025, requiring quarterly emissions reporting. Actual taxes will be enforced from 2026 onwards.

The EU plans to expand the list of items subject to taxes under CBAM, including iron, steel, aluminum, cement, fertilizers, electricity, and hydrogen.

Ajay Srivastava, former Indian Trade Service officer and co-founder of Global Trade Research Initiative (GTRI), noted that the CBAM tax, ranging from 20% to 35%, is significantly higher than the EU’s average import tariff of 2.2% on manufactured products, potentially nullifying zero duties under WTO and FTAs.

India is collaborating with South Africa and other developing nations to challenge the Carbon Border Adjustment Mechanism at the WTO.

Goyal highlighted India’s economic resilience, citing foreign exchange reserves sufficient to cover imports for the next five to six years. Despite a slowdown in exports and increasing imports, India’s foreign exchange reserves are considered stable.

Goyal also mentioned that even with India’s current trade deficit, the foreign exchange reserves are substantial enough to sustain the economy and foreign currency valuation for the next five to six years, thanks to inflows from foreign remittances and investments.

A sudden cloudburst has caused flash floods in Sikkim, leading to neighboring states West Bengal and Jharkhand being put on alert due to heavy rains forecasted by the India Meteorological Department in the coming days.

In West Bengal, districts such as Kalimpong, Darjeeling, and Jalpaiguri are taking precautionary measures by evacuating residents to safer locations. Chief Minister of West Bengal, Mamata Banerjee, stated that steps have been taken to ensure the safety of those affected by the floods. Senior ministers and IAS officers have been dispatched to North Bengal to oversee rescue and relief operations. The continuous rain since Tuesday night has resulted in flooded streets and traffic disruptions.

Furthermore, Paschim Medinipur, Bankura, Purulia, and Purba Bardhaman districts in West Bengal are facing flood-like situations after the Damodar Valley Corporation released a significant amount of water from Maithon and Panchet dams. The weather pattern changes may require additional water release in the coming hours.

In Sikkim, three fatalities and 23 missing Army personnel have been reported following a flash flood caused by a cloud burst at Lhonak lake. Rescue efforts are ongoing, with Chief Minister Prem Singh Tamang monitoring the situation closely.

The southwest monsoon is receding, with a low-pressure area over southeast Jharkhand and nearby regions. Heavy rainfall is predicted in several states, including Bihar, West Bengal, Jharkhand, and north Odisha. Kerala has experienced moderate to heavy rains recently, prompting the establishment of relief camps and precautions in various areas.

Although no specific rain alerts have been issued until October 5, educational institutions in certain districts have been closed in Kerala. Search operations are ongoing for a missing person in the Vamanpuram River, with residents in high-risk and coastal areas advised to remain vigilant.

Six years prior to being labeled a “terrorist”, Nijjar had an Interpol Red Corner Notice issued against him in 2014. Indian agencies informed the Canadian government that he was wanted for over a dozen criminal cases, including murder and terrorist activities in India. Despite this, Canada took no action against him, only placing him on a “no-fly list”, according to sources in central intelligence agencies.

Nijjar, who was killed in a diplomatic incident between India and Ottawa, had entered Canada using a fake passport.

According to intelligence reports, Nijjar had ties to KCF militants in the 1980s and 1990s, and had been closely linked to KTF chief Jagtar Singh Tara since 2012. After fleeing to Canada with a forged passport in 1996 due to terrorism allegations, he worked as a truck driver and later connected with Tara, based in Pakistan.

In 2012, Nijjar traveled to Pakistan under the guise of a Baisakhi jatha member and received weapons and explosives training for two weeks. Upon returning to Canada, he raised funds for terror activities through associates involved in drug and arms smuggling.

Upon arriving in Canada, Nijjar collaborated with Tara to plan a terror attack in India, forming a group in Canada that received arms training in British Columbia. In 2014, Nijjar attempted to carry out an attack on Dera Sacha Sauda headquarters in Haryana’s Sirsa but was unable to enter India due to a visa denial.

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Highlighting the importance of internal democracy within all political parties, Vijay Darda, chairman-editor of Lokmat Media Group and former Rajya Sabha member, emphasized that questioning the leadership of the party (Congress) is not an act of rebellion, but rather a right in a democratic society. He also expressed his belief that Shashi Tharoor would have been a more suitable choice for Congress president than the current leader.

During the launch of his book, ‘Ringside: Up, Close and Personal with India and Beyond’ (Lokmat Prakashan; Rs 799), Darda stated that the Congress missed an opportunity by not appointing a globally experienced leader like Tharoor as the party president. He also expressed concern about senior politicians leaving the Congress and stressed the importance of a strong opposition in a democratic nation.

Darda questioned whether asking questions of the leadership should be considered rebellion, asserting that in a democracy, individuals have the right to question leaders just as they would question family members. The event was attended by several prominent figures, including Shashi Tharoor, Sanjaya Baru, Shekhar Gupta, and Devendra Darda.

‘Ringside’ is a collection of essays originally published in Marathi and Hindi, covering political and social issues from Darda’s tenure as a Rajya Sabha MP. Darda emphasized the importance of a journalist’s independence from political affiliations, citing his father’s belief that a journalist’s pen should always be free.

Darda also expressed his prediction that Prime Minister is likely to win the 2024 Lok Sabha elections. He expressed hope that the new Parliament building will foster civil debate and discussion, but criticized recent sessions for their inefficiency, blaming both the opposition and the ruling party.

Global Pharma Healthcare, a company based in Chennai, has been instructed to stop producing all “ophthalmic preparations” after a joint inspection by central and state drug control officers found a link between its eye drops and blood-stream infections.

The company, which manufactures at least 14 eye products along with cardiovascular drugs, antibiotics, diuretics, painkillers, creams, ointments, and syrups, has also been directed to halt the manufacturing of all ophthalmic preparations until the investigation is completed.

According to the investigation report, the company exported 24 batches of the product in question in 2021 and 2022. Although the inspectors did not find any stock of the product at the company, they collected control samples and raw material samples for further analysis.

The investigation report also revealed that the company had conducted media fill validation tests biannually and yearly stability studies. A root cause analysis for the current complaint is currently underway at the company.

In addition, the company had voluntarily recalled the eye drops from the US market after the US Food and Drug Administration (FDA) initiated an investigation into a bacterial infection linked to the product. The company stated that the eye drops were distributed nationwide in the USA over the internet.

This incident follows cases of contaminated Indian-manufactured syrups linked to deaths in the Gambia and Uzbekistan, leading to the shutdown of the facilities by the Indian regulator. In both cases, the syrups allegedly contained contaminants di-ethylene glycol and ethylene glycol.

According to sources in the Union Health ministry, the eye drop in question is not sold in India.

Additional Solicitor General Aman Lekhi, who has represented the central government in important law and order cases, has resigned from his position. In a brief letter to Union Minister for Law and Justice Kiren Rijiju, Lekhi stated, “I am resigning from the post of Additional Solicitor General of India at the Supreme Court with immediate effect.”

Lekhi, a senior advocate appointed by the High Court in 2005, is expected to return to private practice. Initially appointed as Additional Solicitor General in March 2018, he was later reappointed in July 2020. His term was scheduled to continue until June next year or until further notice.

During his time as ASG, Lekhi represented the CBI and Delhi Police in various important cases, including the 2020 Delhi riots and the challenge against UAPA sanction to prosecute officer Sachin Waze, who is involved in the Antilia bomb scare case.

The Astronomical Society of India (ASI) has grown from 100 astronomers in the early 1970s to 700 members today. India is now involved in three major science projects, including the Square Kilometre Array (SKA), the Thirty Metre Telescope (TMT), and the Laser Interferometer Gravitational-Wave Observatory (LIGO). ASI officials anticipate the need for 500 active astronomers in the next decade and hope to increase membership to 2,000.

The slow growth of ASI was due to the limited availability of astronomical research institutes with telescopes, such as the Aryabhatta Research Institute of Observational Sciences, the Indian Institute of Astrophysics, and the TIFR – National Centre for Radio Astrophysics.

Dr. GC Anupama, the current ASI president, noted the historical focus on cosmology and the lack of students studying observational astronomy. However, the number of students and research outside of the host institutes has increased over the years.

Professor Ajit Kembhavi suggested that ASI focus on capacity building programs using artificial intelligence (AI) and machine learning (ML) techniques. He also proposed making ASI meetings more engaging for mid-career and senior-level faculties and students of astronomy.

Anupama recommended hands-on training for students in using and analyzing astronomical data, especially from smaller telescopes. Senior scientists emphasized India’s strengths in instrumentation, IT, and engineering, which will be crucial in building and maintaining telescopes and observational facilities in the future.

Kembhavi urged ASI to seek funds from industry and companies under their corporate social responsibility (CSR) scheme. ASI plans to revive its Young Astronomers Meet (YAM) and increase interactions with international astronomical organizations and planetarium professionals as part of its year-long golden jubilee celebrations.

The Chief Minister of Arunachal Pradesh, Pema Khandu, has emphasized the development of border areas through improved connectivity, communication, and agricultural activities, leading to early signs of reverse migration. Khandu highlighted the government’s focus on the development of border areas, where half of the state’s area and one-third of its population reside. He emphasized the need to address challenges faced by remote border villages, such as poor connectivity, mountainous terrain, and infrastructural bottlenecks, which have led to out-migration. The government has initiated various programs, including the development of model village clusters, improving connectivity, and strengthening the agriculture sector, to promote all-round development of border areas. Khandu also mentioned the use of space technology, drones, and partnerships with voluntary organizations in the development efforts. With the active support of the central government, these initiatives have shown positive results, with some areas witnessing early signs of reverse migration. Arunachal Pradesh shares the longest international border in the country, stretching for 1,863 km, with 1,126 km bordering Tibet. Deputy Chief Minister Chowna Mein emphasized the need to address the lack of development and infrastructural bottlenecks that have led to significant out-migration from border villages. He highlighted the central government’s Vibrant Village Programme, which aims to bring vibrancy to 455 border villages through income-generating activities, connectivity, and social infrastructure improvements. Additionally, the Arunachal Pradesh government has launched the Golden Jubilee Border Village Illumination Programme, focusing on the electrification of 50 micro, mini, and small hydropower projects in 123 border villages, benefiting 10,185 people. These projects will also electrify 15 establishments of the Indian Army, Indo-Tibetan Border Police, and Border Roads Organisation, covering about 1,800 personnel.

The Centre informed the Supreme Court on Monday that the Home Minister had assured Parliament that Jammu and Kashmir’s statehood would be restored. Solicitor General Tushar Mehta, representing the Centre and JK administration, conveyed the Home Minister’s statement to a five-judge Supreme Court bench led by CJI D Y Chandrachud. The bench is currently hearing petitions challenging the changes made to Article 370 of the Constitution by Parliament in 2019.

Mehta explained that the reorganization of Jammu and Kashmir into a Union Territory is a temporary measure and will ultimately lead to it becoming a state. The Supreme Court, during the 11th day of hearings, noted that the now-defunct Article 35A of the Constitution had removed three fundamental rights and the power of judicial review. Mehta pointed out that the creation of a separate category of permanent residents had led to the exclusion of people from Pakistan-occupied Kashmir and sanitation workers from other states from receiving special privileges and benefits in Jammu and Kashmir.

The Supreme Court also discussed the impact of Article 35A, which created exceptions to fundamental rights regarding employment, property acquisition, and settlement in the state. Mehta argued that the government’s actions in 2019 were a correction of past mistakes and aimed to bring Jammu and Kashmir in line with the rest of the country.

Mehta emphasized that the changes have resulted in increased investments and tourism in Jammu and Kashmir. He also highlighted the alteration in the oath taken by judges of the Jammu and Kashmir High Court, from expressing allegiance to the Constitution of the state to the Constitution of India.

Regarding the reorganization of the state, Mehta explained that Parliament’s power during a Presidential proclamation under Article 356 supersedes the proviso to Article 3. He assured the court that the actions taken by Parliament do not undermine federalism.

Mehta concluded by stating that the government’s actions were aimed at rectifying past mistakes and bringing Jammu and Kashmir in line with the rest of the country.