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CURRENT AFFAIRSTHE HINDU : JULY 2019

Daily Current Affairs : 14th July 2019 : The Hindu News Analysis


CHANDRAYAAN 2 all set for the voyage of 3.84 lakh km


The launch of the lunar probe has been scheduled by the Indian Space Research Organization (ISRO) by  a GSLV MK-III rocket from the Sriharikota spaceport on July 15, 2019.

Its previous version the Chandrayaan-1, which was launched in 2008, only orbited the moon from a distance of about 100 km. But, Chandrayaan 2 is the first ever attempt by any nation to land on the Moon's mineral rich South Pole.

If successful in first attempt, India will become only the Fourth nation to  soft land on the surface of the moon after erstwhile Soviet Union, U.S. and China.

To know more about the Chandrayaan 2 space mission, Click Here

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Why is India keen on opting for the overseas bonds?

As announced by the Finance Minister in the Budget Speech on July 5, 2019, the government has plans to raise a part of their gross borrowing from the overseas markets.

To understand the pros and cons of such steps we must understand that what is an overseas bond issue.

If we talk about a Government bond or a Sovereign bond, it can be understood as a form of debt that government undertakes in which it issues bonds with an assurance that it will pay periodic payment for interest and also the repayment of the entire face value of the bond at maturity.

Till now, the government has allowed issuance of bonds only in the domestic markets.

What are the benefits involved in opting for an overseas bond issue?

The major benefit of such an issuance will be the boost in the private investment. As for now, government borrowing (about 80-85% of the domestic savings) is at such a level that private sectors have to compromise their needs for funds to meet its credit and investment.

And if private sector will not be able to borrow adequately due to this huge government borrowing, then it will not be able to invest also hence, hampering the one of the most important engine of the economic growth.

Therefore, borrowing overseas allows the government to raise funds in such a way that there is sufficient domestic credit available for the private sector.

What are the risks involved?
  • One of the major risk involved from the overseas borrowing is that if the domestic currency depreciates in comparison to the international market, then it would be nearly impossible to pay debts. Such things has already happened in past in 1970's when several of Central and South American countries borrowed from the overseas market when the global market was flush with liquidity.
  • A quicker increase in the foreign exchange reserve is another bigger problem as it will strengthen the rupee which will boost imports at a time when India is trying to curb them.
  • Another serious issue with it is that, the government will not be able to inflate itself out of the non-repayment trouble. In case of domestic market, if in any case, government is not able to repay its debt, it simply prints more money which increases inflation and debts are repaid quickly. But in case of Foreign market, there is no option of printing of foreign currency to repay debts.
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RUSSIA SENDS A TELESCOPE IN SPACE

The Spektr-RG, developed with Germany, is a space observatory which is intended to replace Spektr-R, known commonly as the "Russian Hubble" of which the Russian Space Agency (ROSCOSMOS) lost control in January this year.

Spektr-R, the previous version was launched in space in 2011 to study Black Holes, Magnetic fields and neuron stars. It was launched aboard the Pocket-M rocket.
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QUICK FEEDS
  • FERNANDO CORBATO, the computer genius well known for his contribution to the Compatible Time-Sharing System (CTSS) which paved the way for the personal computer and as well as computer passwords, has died at the age of 93.
  • U.S. set to grow the largest crop of Marijuana for research purposes.
  • The Black Hole Puzzle : The presence of a Black Hole at the center of the Galaxy NGC 3147 which is about 130 million miles away, was revealed by Hubble Space Telescope. It also noticed that this Black hole is behaving differently from the traditional black hole.

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