Top News Highlights- 22 August 2024

UN Global Tax Convention: A Milestone in International Tax Cooperation

• Inclusive Framework: The UN has approved a package of guidance for establishing a Global Tax Treaty, aimed at creating a fair and effective international tax system.
• India’s Role: India, along with other developing countries, supported the treaty, which seeks to address tax challenges posed by digitalization and global MNC operations.
• Key Commitments: The treaty focuses on equitable taxation of MNCs, addressing illicit financial flows, and enhancing mutual administrative assistance in tax matters.

India-Malaysia Relations Elevated to Comprehensive Strategic Partnership

• Diplomatic Ties Strengthened: India and Malaysia have upgraded their bilateral relationship, emphasizing cooperation in digital infrastructure, cybersecurity, and emerging technologies.
• Bilateral Trade: Trade between the two nations has reached $19.5 billion, with significant collaboration in defense and ASEAN centrality.
• Cultural and Technological Cooperation: Agreements were signed in areas including Ayurveda, tourism, and start-up ecosystem development.

Nanoparticles: A Breakthrough in Fungal Infection Treatment

• Advanced Drug Delivery: Scientists have developed a nanoformulation for targeted drug delivery, showing promise in treating fungal infections without harmful side effects.
• Applications in Healthcare: Nanotechnology is revolutionizing medical imaging, targeted drug delivery, and tissue engineering, providing new solutions for diseases like cancer and HIV.

Model Foster Care Guidelines (MFCG) 2024 Released

• Updated Guidelines: The Ministry of Women and Child Development has released revised foster care guidelines, allowing single individuals and married couples to foster children, including those with special needs.
• Foster Adoption Simplified: The new guidelines reduce the required foster period before adoption from five years to two, facilitating smoother transitions for children into permanent homes.

Pilot Project: Transformation of Fair Price Shops into Jan Poshan Kendras

• Nutritional Focus: The government has launched a pilot project to convert 60 Fair Price Shops into Jan Poshan Kendras, offering nutrition-rich food items and generating additional income for shop owners.
• Geographical Coverage: The pilot will be implemented in Gujarat, Rajasthan, Telangana, and Uttar Pradesh.

Inflation Targeting Regime: NCAER’s Assessment

• Review of RBI’s Mandate: The National Council for Applied Economic Research (NCAER) has released a paper assessing India’s inflation-targeting regime, cautioning against radical changes that could undermine the RBI’s focus on price stability.
• Core vs. Headline Inflation: The paper suggests that neglecting food price inflation for an extended period may have adverse effects, emphasizing the importance of a balanced approach.

Key Concepts and Policies

• UN Global Tax Convention: A proposed treaty to create a fair and inclusive international tax system, addressing challenges from digitalization and MNCs.
• Nanoparticles: Tiny particles used in medicine to improve drug delivery, imaging, and tissue engineering, offering precise and targeted treatments.
• Model Foster Care Guidelines (MFCG): Guidelines set by the Indian government for the foster care system, ensuring the welfare and rights of children in non-biological family settings.
• Inflation Targeting: A monetary policy framework where a central bank sets an explicit target for the inflation rate to maintain price stability and economic growth.