Feb 27, 2020 AIR

Economic Survey 2020 - All India Radio (AIR) IAS UPSC

Economic Survey 2020 ARCHIVES Search 31st Jan 2020 Current Affair here: http://www.newsonair.com/Main_Audio_Bulletins_Search.aspx  Topic: General Studies 3: Government Budgeting. Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment India’s aspiration to become a $5 trillion economy depends critically on promoting “pro-business” policy – Economic Survey Theme: Enable Markets, Promote 'Pro-Business' Policies and Strengthen 'Trust' in the Economy The Economic Survey 2019-20 says India’s aspiration to become a $5 trillion economy depends critically on promoting “pro-business” policy that unleashes the power of competitive markets to generate wealth, on the one hand, and weaning away from “pro-crony” policy that may favour specific private interests, especially powerful incumbents, on the other hand. Creative destruction The Survey stated that creative destruction has increased significantly after reform.  The liberalization of the Indian economy in 1991 unleashed competitive markets and enabled the forces of creative destruction, generating benefits that we still witness today. Creative destruction brings new innovations in the market that serve people better than the old technologies they displace. It brings new firms into the markets, which compete with existing firms and lower prices for consumers.  Using the lens of Indian equity markets as captured in the S&P(Standard & Poor’s) BSE Sensex, we can clearly see an increase in market dynamism in the pro-business India of the post-liberalization period. After the market reforms of 1991, Sensex has grown at an accelerating pace. Whereas crossing the first incremental 5000 points took over 13 years and was achieved in 1999, the time taken to achieve each incremental milestone has substantially reduced over the years. Liberalisation caused a spike in the number of firms churned in the years that immediately followed it, but the churn rate did not decline to pre-liberalization level in later years. New sectors like banks and financials entered the index for the first time, eroding the predominance of the manufacturing sector on the index, placing the services sector on the map for the first time, and reflecting the far-reaching changes that the Indian economy was witnessing in the wake of liberalization. Pro-crony policies, in contrast to pro-business ones, erode wealth in the economy as cronyism fosters inefficiencies by inhibiting the process of creative destruction. The connected firms proxy firms that may benefit from pro-crony policies. Despite impressive progress in enabling competitive markets, pro-crony policies have destroyed value in the economy. Wilful default, if unchecked, would increase the cost of borrowing for everyone else, including genuine businesses with profitable investment opportunities before them. Adverse selection may force genuine borrowers to exist the market altogether, leaving only cronies in the market and resulting in a market failure that slows economic growth, employment and wealth creation capacity. Wealth Creation: The Invisible Hand Supported by the Hand of Trust India’s dominance as global economic power for three-fourths of economic history manifests by design. Kautilya’s Arthashastra postulates the role of prices in an economy (Spengler, 1971). Historically, Indian economy relied on the invisible hand of the market with the support of the hand of trust: Invisible hand of the market reflected in openness in economic transactions. Hand of trust appealed to ethical and philosophical dimensions. Post-liberalisation, Indian economy supports both pillars of the economic model advocated in our traditional thinking. Survey illustrates enormous benefits accruing from enabling the invisible hand of the market. Exponential rise in India’s GDP and GDP per capita post-liberalisation coincides with wealth generation. Survey shows that the liberalized sectors grew significantly faster than the closed ones. Need for the hand of trust to complement the invisible hand, illustrated by financial sector performance during 2011-13. Survey posits that India’s aspiration to become a $5 trillion economy depends critically on: Strengthening the invisible hand of the market Supporting it with the hand of trust Strengthening the invisible hand by promoting pro-business policies to: Provide equal opportunities for new entrants Enable fair competition and ease doing business Eliminate policies unnecessarily undermining markets through government intervention Enable trade for job creation Efficiently scale up the banking sector Introducing the idea of trust as a public good, which gets enhanced with greater use Survey suggests that policies must empower transparency and effective enforcement using data and technology Entrepreneurship and Wealth Creation at the Grassroots Entrepreneurship as a strategy to fuel productivity growth and wealth creation India ranks third in number of new firms created, as per the World Bank New firm creation in India increased dramatically since 2014: 12.2 % cumulative annual growth rate of new firms in the formal sector during 2014-18, compared to 3.8 % during 2006-2014. About 1.24 lakh new firms created in 2018, an increase of about 80 % from about 70,000 in 2014. Survey examines the content and drivers of entrepreneurial activity at the bottom of the administrative pyramid – over 500 districts in India. New firm creation in services is significantly higher than that in manufacturing, infrastructure or agriculture Survey notes that grassroots entrepreneurship is not just driven by necessity A 10 percent increase in registration of new firms in a district yields a 1.8 % increase in Gross Domestic District Product (GDDP) Entrepreneurship at district level has a significant impact on wealth creation at the grassroots Birth of new firms in India is heterogeneous and dispersed across districts and sectors. Literacy and education in a district foster local entrepreneurship significantly: Impact is most pronounced when literacy is above 70 per cent. New firm formation is the lowest in eastern India with lowest literacy rate (59.6 % as per 2011 Census) Physical infrastructure quality in the district influences new firm creation significantly. Ease of Doing Business and flexible labour regulation enable new firm creation, especially in the manufacturing sector. Survey suggests enhancing ease of doing business and implementing flexible labour laws can create maximum jobs in districts and thereby in the states. Pro-business versus Pro-markets Survey says that India’s aspiration of becoming a $5 trillion economy depends critically on: Promoting ‘pro-business’ policy that unleashes the power of competitive markets to generate wealth. Weaning away from ‘pro-crony’ policy that may favour specific private interests, especially powerful incumbents. Viewed from the lens of the Stock market, creative destruction increased significantly post-liberalisation: Before liberalisation, a Sensex firm expected to stay in it for 60 years, which decreased to only 12 years after liberalisation. Every five years, one-third of Sensex firms are churned out, reflecting the continuous influx of new firms, products and technologies into the economy. Despite impressive progress in enabling competitive markets, pro-crony policies destroyed value in the economy: An equity index of connected firms significantly outperformed market by 7 % a year from 2007 to 2010, reflecting abnormal profits extracted at common citizens’ expense. In contrast, the index underperforms market by 7.5 % from 2011, reflecting inefficiency and value destruction inherent in such firms. Pro-crony policies such as discretionary allocation of natural resources till 2011 led to rent-seeking by beneficiaries while competitive allocation of the same post 2014 ended such rent extraction. Similarly crony lending that led to wilful default, wherein promoters collectively siphoned off wealth from banks, led to losses that dwarf subsidies for rural development. Undermining Markets: When Government Intervention Hurts More Than It Helps Government intervention, though well intended, often ends up undermining the ability of the markets to support wealth creation and leads to outcomes opposite to those intended. Four examples of anachronistic government interventions: Essential Commodities Act (ECA), 1955: Frequent and unpredictable imposition of blanket stock limits on commodities under ECA distorts: The incentives for the creation of storage infrastructure by the private sector. Movement up the agricultural value chain. Development of national market for agricultural commodities. Imposition of stock limits on dal in 2006-Q3, sugar in 2009-Q1 and onions in September, 2019 spiked up the volatility of the retail and wholesale prices of onions. The Ministry of Consumer Affairs must examine whether the ECA is relevant in today’s India. With raids having abysmally low conviction rate and no impact on prices, the ECA only seems to enable rent-seeking and harassment. Survey suggests there is clear evidence for jettisoning this anachronistic legislation. Drug Price Control under ECA: The regulation of prices of drugs, through the DPCO 2013, led to increase in the price of the regulated pharmaceutical drug vis-à-vis that of an unregulated but similar drug. The increase in prices is greater for more expensive formulations than for cheaper ones and for those sold in hospitals rather than retail shops. These findings reinforce that the outcome is opposite to what DPCO aims to do - making drugs affordable. Government, being a huge buyer of drugs, can intervene more effectively to provide affordable drugs by combining all its purchases and exercising its bargaining power. Ministry of Health and Family Welfare must evolve non-distortionary mechanisms that utilise Government’s bargaining power in a transparent manner. Government intervention in Grain markets: Policies in the food-grain markets led to: Emergence of Government as the largest procurer and hoarder of rice and wheat. Crowding out of private trade. Burgeoning food subsidy burden Inefficiencies in the markets, affecting the long run growth of agricultural sector. The food-grains policy needs to be dynamic and allow switching from physical handling and distribution of food-grains to cash transfers/food coupons/smart cards. Debt waivers: Analysis of debt waivers given by States/Centre: Full waiver beneficiaries consume less, save less, invest less and are less productive after the waiver, compared to the partial beneficiaries. Debt waivers disrupt the credit culture. They reduce formal credit flow to the very same farmers, thereby defeating the purpose. Survey suggests that: Government must systematically examine areas of needless intervention and undermining of markets; but it does not argue that there should be no Government intervention. Instead it suggests that the interventions that were apt in a different economic setting may have lost their relevance in a transformed economy. Eliminating such instances will enable competitive markets spurring investments and economic growth. Creating Jobs and Growth by Specializing in Network Products Survey says India has unprecedented opportunity to chart a China-like, labour-intensive, export trajectory. By integrating “Assemble in India for the world” into Make in India, India can: Raise its export market share to about 3.5 % by 2025 and 6 % by 2030. Create 4 crore well-paid jobs by 2025 and 8 crore by 2030. Exports of network products can provide one-quarter of the increase in value added required for making India a $5 trillion economy by 2025. Survey suggests a strategy similar to one used by China to grab this opportunity: Specialization at large scale in labour-intensive sectors, especially network products. Laser-like focus on enabling assembling operations at mammoth scale in network products. Export primarily to markets in rich countries. Trade policy must be an enabler. Survey analyses the impact of India’s trade agreements on overall trade balance: India’s exports increased by 13.4 % for manufactured products and 10.9 % for total merchandise Imports increased by 12.7 % for manufactured products and 8.6 per cent for total merchandise. India gained 0.7 % increase in trade surplus per year for manufactured products and 2.3 % per year for total merchandise.  Targeting Ease of Doing Business in India A jump of 79 positions to 63 in 2019 from 142 in 2014 in World Bank’s Doing Business rankings. India still trails in parameters such as Ease of Starting Business, Registering Property, Paying Taxes and Enforcing Contracts. Survey has numerous case studies: For merchandise exports, the logistics process flow for imports is more efficient than that for exports. Electronics exports and imports through Bengaluru airport illustrate how Indian logistical processes can be world class. The turnaround time of ships in India has almost halved to 2.48 days in 2018-19 from 4.67 days in 2010-11. Suggestions for further Ease of Doing Business: Close coordination between the Logistics division of the Ministry of Commerce and Industry, the Central Board of Indirect Taxes and Customs, Ministry of Shipping and the different port authorities. Individual sectors such as tourism or manufacturing require a more targeted approach that maps out the regulatory and process bottlenecks for each segment. Golden jubilee of bank nationalisation: Taking stock Survey observes 2019 as the golden jubilee year of bank nationalization Accomplishments of lakhs of Public Sector Banks (PSBs) employees cherished and an objective assessment of PSBs suggested by the Survey. Since 1969, India’s Banking sector has not developed proportionately to the growth in the size of the economy. India has only one bank in the global top 100 – same as countries that are a fraction of its size: Finland (about 1/11th), Denmark (1/8th), etc. A large economy needs an efficient banking sector to support its growth. The onus of supporting the economy falls on the PSBs accounting for 70 % of the market share in Indian banking: PSBs are inefficient compared to their peer groups on every performance parameter. In 2019, investment for every rupee in PSBs, on average, led to the loss of 23 paise, while in NPBs it led to the gain of 9.6 paise. Credit growth in PSBs has been much lower than NPBs for the last several years. Solutions to make PSBs more efficient: Employee Stock Ownership Plan (ESOP) for PSBs’ employees Representation on boards proportionate to the blocks held by employees to incentivize employees and align their interests with that of all shareholders of banks. Creation of a GSTN type entity that will aggregate data from all PSBs and use technologies like big data, artificial intelligence and machine learning in credit decisions for ensuring better screening and monitoring of borrowers, especially the large ones. Financial Fragility in the NBFC Sector Survey investigates the key drivers of Rollover Risk of the shadow banking system in India in light of the current liquidity crunch in the sector. Key drivers of Rollover Risk: Asset Liability Management (ALM) Risk. Interconnectedness Risk. Financial and Operating Resilience of an NBFC. Over-dependence on short-term wholesale funding. Survey computes a diagnostic (Health Score) by quantifying the Rollover risk for a sample of HFCs and Retail-NBFCs (which are representative of their respective sectors). The analysis of the Health Score has the following findings: The HFC sector exhibited a declining trend post 2014 and overall health of the sector worsened considerably by the end of FY2019. The Score of the Retail-NBFC sector was consistently below par for the period 2014 -19. Larger Retail-NBFCs had higher Health Scores but among medium and small Retail- NBFCs, the medium size ones had a lower score for the entire period of 2014-19. Survey suggests that the Health Score provides an early warning signal of impending liquidity problems. Equity markets react favourably to increase in Health Score of individual HFCs and Retail-NBFCs. The Survey prescribes this analysis to efficiently allocate liquidity enhancements across firms (with different Health Scores) in the NBFC sector, thereby arresting financial fragility in a capital-efficient manner. Privatization and Wealth Creation Survey examines the realized efficiency gains from privatization in the Indian context and bolsters the case for aggressive disinvestment of CPSEs. Strategic disinvestment of Government’s shareholding of 53.29 per cent in HPCL led to an increase of around Rs. 33,000 crore in national wealth. Survey presents an analysis of the before-after performance of 11 CPSEs which underwent strategic disinvestment from 1999-2000 to 2003-04: Financial indicators such as net worth, net profit, return on assets (ROA), return on equity (ROE) etc of the privatized CPSEs, on an average, have improved significantly. Privatized CPSEs have been able to generate more wealth from the same resources. Survey suggests aggressive disinvestment of CPSEs to: Bring in higher profitability. Promote efficiency. Increase competitiveness. Promote professionalism India’s Economic Performance in 2019-20 India’s GDP growth moderated to 4.8 % in H1 of 2019-20, amidst a weak environment for global manufacturing, trade and demand. Real consumption growth has recovered in Q2 of 2019-20, cushioned by a significant growth in government final consumption. Growth for ‘Agriculture and allied activities’ and ‘Public administration, defense, and other services’ in H1 of 2019-20 was higher than in H2 of 2018-19. India’s external sector gained further stability in H1 of 2019-20:  Current Account Deficit (CAD) narrowed to 1.5 % of GDP in H1 of 2019-20 from 2.1 % in 2018-19.  Impressive Foreign Direct Investment (FDI).  Rebounding of portfolio flows.  Accretion of foreign exchange reserves.  Sharper contraction of imports as compared to that of exports in H1 of 2019-20, with easing of crude prices. Headline inflation expected to decline by year end: Increased from 3.3 % in H1 of 2019-20 to 7.35 % in December 2019-20 due to temporary increase in food inflation. Rise in CPI-core and WPI in December 2019-20 suggests building of demand pressure. Deceleration in GDP growth can be understood within the framework of a slowing cycle of growth: Financial sector acted as a drag on the real sector (investment-growth-consumption). Reforms undertaken during 2019-20 to boost investment, consumption and exports: Speeding up the insolvency resolution process under Insolvency and Bankruptcy Code (IBC).  Easing of credit, particularly for the stressed real estate and NBFC sectors.  Announcing the National Infrastructure Pipeline 2019-2025. Survey expects an uptick in the GDP growth in H2 of 2019-20: 5 % GDP growth for 2019-20 based on CSO’s first Advance Estimates.  Expeditious delivery on reforms for enabling the economy to strongly rebound in 2020-21 Sustainable Development and Climate Change India moving forward on the path of SDG implementation through well-designed initiatives SDG India Index: Himachal Pradesh, Kerala, Tamil Nadu, Chandigarh are front runners. Assam, Bihar and Uttar Pradesh come under the category of Aspirants. India hosted COP-14 to UNCCD which adopted the Delhi Declaration: Investing in Land and Unlocking Opportunities. COP-25 of UNFCCC at Mandrid: India reiterated its commitment to implement Paris Agreement. COP-25 decisions include efforts for climate change mitigation, adaptation and means of implementation from developed country parties to developing country parties. Forest and tree cover Increasing and has reached 80.73 million hectare. 24.56 % of the geographical area of the country. Burning of agricultural residues, leading to rise in pollutant levels and deterioration of air quality, is still a major concern though the total number of burning events recorded reduced due to various efforts taken. International Solar Alliance (ISA) ‘Enabler’ by institutionalizing 30 Fellowships from the Member countries. ‘Facilitator’ by getting the lines of credit worth US$ 2 Billion from EXIM Bank of India and 1.5 Billion from AfD, France. ‘Incubator’ by nurturing initiatives like the Solar Risk Mitigation Initiative. ‘Accelerator’ by developing tools to aggregate demand for 1000 MW solar and 2.7 lakh solar water pumps. Agriculture and Food Management Largest Proportion of Indian population depends directly or indirectly on agriculture for employment opportunities as compared to any other sector. The share of agriculture and allied sectors in the total Gross Value Added (GVA) of the country has been continuously declining on account of relatively higher growth performance of non-agricultural sectors, a natural outcome of development process. GVA at Basic Prices for 2019-20 from ‘Agriculture, Forestry and Fishing’ sector is estimated to grow by 2.8 %. Agricultural productivity is also constrained by lower level of mechanization in agriculture which is about 40 % in India, much lower than China (59.5 %) and Brazil (75 %). Skewed pattern of regional distribution of agricultural credit in India: Low credit in Hilly, Eastern and North Eastern states (less than 1 % of total agricultural credit disbursement). Livestock income has become an important secondary source of income for millions of rural families: An important role in achieving the goal of doubling farmers’ income. Livestock sector has been growing at a CAGR of 7.9 % during last five years. During the last 6 years ending 2017-18, Food Processing Industries sector has been growing: Average Annual Growth Rate (AAGR) of around 5.06 % Constitutes as much as 8.83 % and 10.66 % of GVA in Manufacturing and Agriculture sector respectively in 2017-18 at 2011-12 prices. While interests of the vulnerable sections of the population need to be safeguarded, Survey emphasizes on sustainability of food security operations by: Addressing the burgeoning food subsidy bill. Revisiting the rates and coverage under NFSA. Industry and Infrastructure The industrial sector as per Index of Industrial Production (IIP) registered a growth of 0.6 per cent in 2019-20 (April-November) as compared to 5.0 % during 2018-19 (April-November). Fertilizer sector achieved a growth of 4.0 % during 2019-20 (April-November) as compared to (-) 1.3 per cent during 2018-19 (April-November). Steel sector achieved a growth of 5.2 % during 2019-20 (April-November) as compared to 3.6 % during 2018-19 (April-November). Total telephone connections in India touched 119.43 crore as on September 30, 2019. The installed capacity of power generation has increased to 3, 64,960 MW as on October 31, 2019 from 3, 56,100 MW as on March 31, 2019. Report of the Task Force on National Infrastructure Pipeline released on 31.12.2019 has projected total infrastructure investment of Rs. 102 lakh crore during the period FY 2020 to 2025 in India. Services Sector Increasing significance of services sector in the Indian economy: About 55 % of the total size of the economy and GVA growth.  Two-thirds of total FDI inflows into India. About 38 per cent of total exports. More than 50 % of GVA in 15 out of the 33 states and UTs. Gross Value Added growth of the services sector moderated in 2019-20 as suggested by various high-frequency indicators and sectoral data such as air passenger traffic, port and shipping freight traffic, bank credit etc. On the bright side, FDI into services sector has witnessed a recovery in early 2019-20. Social Infrastructure, Employment and Human Development The expenditure on social services (health, education and others) by the Centre and States as a proportion of GDP increased from 6.2 % in 2014-15 to 7.7 % in 2019-20 (BE). India’s ranking in Human Development Index improved to 129 in 2018 from 130 in 2017: With 1.34 % average annual HDI growth, India is among the fastest improving countries Gross Enrolment Ratio at secondary, higher secondary and higher education level needs to be improved. The share of regular wage/salaried employees has increased by 5 percentage points from 18 % in 2011-12 to 23 % in 2017-18.  A significant jump of around 2.62 crore new jobs with 1.21 crore in rural areas and 1.39 crore in urban areas in this category. Total formal employment in the economy increased from 8 % in 2011-12 to 9.98 % in 2017-18. Gender disparity in India’s labour market widened due to decline in female labour force participation especially in rural areas: Around 60 % of productive age (15-59) group engaged in full time domestic duties. Access to health services inter-alia through Ayushman Bharat and Mission Indradhanush across the country has improved. Mission Indradhanush has vaccinated 3.39 crore children and 87.18 lakh pregnant women of 680 districts across the country. About 76.7 % of the households in the rural and about 96 % in the urban areas had houses of pucca structure. A 10 Year Rural Sanitation Strategy (2019-2029) launched to focus on sustaining the sanitation behavior change and increasing access to solid and liquid waste management.

Feb 27, 2020 RSTV Video

India Calls CPEC Illegal – The Big Picture – RSTV IAS UPSC

India Calls CPEC Illegal Archives TOPIC: General Studies 2 India and its neighbourhood- relations. Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests India has enjoyed substantial regional influence across South Asia due to its size, comparative economic might, and historical and cultural relevance to the region. But over the past decade, China has become a significant economic partner to countries throughout the region, forging particularly strong ties with smaller states through trade, diplomacy, aid, and investment. China has adopted a policy aimed at enhancing the development options of its neighbours as well as promoting new lines of communication or corridors with its southwestern periphery. Much of this impetus has been provided by the Belt & Road Initiative (BRI) – a grand connectivity plan that envisions a network of states economically linked to China through a variety of commercial-financial relationships and industrial projects  Launched in 2015, China Pakistan Economic Corridor (CPEC) is a series of roads, railways, pipelines, hydropower plants and other development projects, being built from between China and Pakistan. The $46 billion CPEC will connect China’s largest province Xinjiang with Pakistan’s Gwadar port in Balochistan. The economic corridor between China-Pakistan is a flagship program of One Belt One Road. This extends beyond mere economic activity, however, and includes establishing a whole host of rules, from cultural exchange to the movement of people. What exactly is OBOR? Focuses on: Improving connectivity and cooperation as well as enhance land as well as maritime routes Backed by extensive China led funding, the infrastructure runs through the continents of Asia, Europe and Africa, connecting the vibrant East Asia economic circle at one end and developed European economic circle at the other. The policy is significant for China since it aims to boost domestic growth in the country. Experts have noted that OBOR is also a part of China’s strategy for economic diplomacy. China Pakistan Economic Corridor: India’s Achilles’ heel  Threat to India’s Sovereignty: China-Pakistan Economic Corridor, or CPEC, which passes through Pakistan-occupied Kashmir. The corridor threatens territorial integrity of nation. In fact, when the Chinese entered into an agreement with Pakistan in 1963 to build the Karakoram Highway in the Pakistan occupied Kashmir (PoK) region, India had vociferously objected to it on the very question of sovereignty. The region through which the highway was to pass belonged to India and has been under the illegal occupation of Pakistan. The Chinese side, thus, has full knowledge of India’s concerns about the region. The CPEC today passes through the same region of PoK called Gilgit Baltistan (GB). India has time and again raised its concerns over Chinese activity in the region, the latest being in 2011 when information came out about the presence of thousands of Chinese troops in the region. Expansion of Military: Ever since the construction of the corridor is started, the Chinese military presence in the area is also embarked. This military personnel would be deployed around the projects built by Chinese companies. China can permanently position troops on Pakistan soil not too far from the Indian. Control of Maritime trade: CPEC gives China a foothold in the western Indian Ocean with the Gwadar port, located near the strategic Strait of Hormuz, where Chinese warships and a submarine have surfaced. Access here allows China greater potential to control maritime trade in that part of the world – a vulnerable point for India, which sources more than 60 percent of its oil supplies from the Middle East.  Curtail India’s influence in neighbourhood: Nepal which was historically close to India is now seeking help from China to use its ports for transport of goods. The proposed rail corridor between Kathmandu and Tibet is example of growing influence of China in Nepal. Threats of insurgency in North East: The illegal use of money and providing external help in forms of arms can cause unrest in North East. China’s Trade Policy: China has already been using countries such as Thailand, Sri Lanka and Bangladesh to dump their products in India, and there is a huge bilateral trade deficit between China and India. India is not keen on this, especially because of a lack of structures in terms of customs and other clearances on border areas. While China wants to use third country routes to supply its products to India, it does not allow Indian services or certain other products access to its own market. Illegal migrants: Social harmony will be disrupted as illegal migrants, disgruntled with Chinese surveillance and intrusive governance might flee to bordering Indian territory (e.g.: Tibetans, Uighurs etc.). These migrants might also upset the local resource balance, given that even Indian border areas are relatively underdeveloped. Aggressive expansion: This is evident from: Karakoram highway Resettlement of Chinese citizens in Tibet with the intention to change the regional ethnic mix Surveillance of Uighurs in Xinjiang Industrial development with policy reform to promote industrialization in its interior areas. Conclusion India need to be cautious with growing influence of China and at same time strive and improve its infrastructure in North East and its relations with neighbouring  countries. The connectivity initiatives must be based on universally recognized international norms. They must follow principles of openness, transparency and financial responsibility and must be pursued in a manner that respects sovereignty, equality and territorial integrity of other nations. China should remember this. Connecting the Dots: The China Pakistan Economic Corridor (CPEC) is China’s Marshall plan. Do you agree? Substantiate. How is China posing challenges in India’s engagement with the neighbours? What measures have been taken to instil confidence amongst India’s immediate neighbours?

Feb 27, 2020 Daily Prelims CA Quiz

UPSC Quiz - 2020: IAS Daily Current Affairs Quiz Day 189

UPSC Quiz - 2020: IAS Daily Current Affairs Quiz Day 189 Archives Important Note Don't forget to post your marks in the comment section. Also, let us know if you enjoyed today's test :)  To take the Test - Click Here

Feb 26, 2020 IASbaba's Daily Current Affairs

Daily Current Affairs IAS | UPSC Prelims and Mains Exam – 26th February 2020

IAS UPSC Prelims and Mains Exam – 26th February 2020 Archives (PRELIMS + MAINS FOCUS) (Cauvery Water Management Authority )CWMA drops discussion on Mekedatu dam Part of: GS Prelims –Polity and GS-II- River disputes In news: Tamil Nadu and Puducherry strongly objected to Karnataka’s bid to seek approval for the Mekedatu dam project, at the fifth Cauvery Water Management Authority (CWMA) From Prelims Point of View: Cauvery Water Management Authority (CWMA) Formed by the Centre. Under  Inter-State River Water Disputes Act, 1956  To adjudicate upon the water dispute regarding the Inter-State river Cauvery and the river valley thereof among the States of Karnataka, Kerala, Tamil Nadu and the Union territory of Puducherry. Implement the water-sharing award of the Cauvery Water Dispute Tribunal water sharing will be as modified by the Supreme Court Cauvery River The river rises on Brahmagiri Hill of the Western Ghats in southwestern Karnataka state, flows in a south easterly direction through the states of Karnataka and Tamil Nadu, and descends the Eastern Ghats in a series of great falls.  Some of its tributaries are Arkavathi, Hemavathi, Lakshmana Theertha, Shimsa, Kabini and Harangi. India, U.S. ‘Comprehensive Global Strategic Partners’, ink deals on energy Part of: GS Prelims –Polity and GS-II- International relations In news: India and the United States strengthened their partnership with agreements on healthcare and energy, and issued a joint statement that designated the two countries as “Comprehensive Global Strategic partners”. Highlights: India - US called upon Pakistan to rein in cross-border terror threats  Sought justice for the victims of 26/11 attack and the Pathankot terror attack of 2016. Called for concerted action against all terrorist groups including Al-Qaeda, ISIS, Jaish-e-Mohammad, Lashkar-e-Taiba, Hizb-ul-Mujahideen, the Haqqani Network, TTP, D Company, and all their affiliates Both India – US  recognized the efforts of the ASEAN region to create a code of conduct in the South China Sea region. Agreed to undertake development activities in third countries and intensify cooperation in the space domain U.S. and India were working to revitalise the quadrilateral initiative consisting of Japan, the U.S., India and Australia Both sides also working on cybersecurity and counter-terrorism issues. From Prelims Point of View: Quadrilateral Security Dialogue (Quad) Informal strategic dialogue between India, USA, Japan and Australia  Objective : to ensure and support a “free, open and prosperous” Indo-Pacific region First mooted by Japanese Prime Minister Shinzo Abe  In 2017, India, the US, Australia and Japan gave shape to the long-pending "Quad" Coalition to develop a new strategy to keep the critical sea routes in the Indo-Pacific free of any influence (especially China). ASEAN Association of Southeast Asian Nations is a regional organization to promote political and social stability amid rising tensions among the Asia-Pacific’s post-colonial states. Secretariat – Indonesia, Jakarta. Daily Current Affairs IAS | UPSC Prelims and Mains Exam – 26th February 2020 Src: Financetwitter  Five Supreme Court judges infected with swine flu Part of: GS Prelims –Sci & Tech and GS-II- Health  From Prelims Point of View: Swine Flu Human respiratory infection caused by an influenza strain that started in pigs. First recognised in the 1919  Swine flu is caused by the H1N1 virus strain, which started in pigs. Symptoms  Fever, cough, sore throat, chills, weakness and body aches.  Spreads Airborne respiratory droplets (coughs or sneezes). Skin-to-skin contact (handshakes or hugs) Saliva (kissing or shared drinks).  Touching a contaminated surface (blanket or doorknob) Daily Current Affairs IAS | UPSC Prelims and Mains Exam – 26th February 2020 Src: The Hindu For More information read this : https://iasbaba.com/2019/03/all-india-radio-air-ias-upsc-swine-flu-awareness-and-cure/ Hosni Mubarak, ousted by Arab Spring in 2011, dies Part of: GS Prelims –Polity and GS-II- International relations In news Egypt’s former President Hosni Mubara died  He was swept from power, like other regional potentates, by the popular uprisings of the 2011 Arab Spring. From Prelims Point of View: Arab Spring : A series of antigovernment protests, uprisings and armed rebellions that spread across the Middle East.  Reasons : Oppressive regimes and a low standard of living  Protests begin in Tunisia Revolution spread like fire to five other countries: Libya, Yemen, Egypt, Bahrain and Syria Result of the revolution: Either the regime was toppled or major uprisings or social violence occurred, including riots, civil wars, mass murdering or insurgencies. (MAINS FOCUS) Governance Topic: General Studies 2: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.  Statutory, regulatory and various quasi-judicial bodies. Personal Data Protection (PDP) Bill, 2019 – Part II – Issues with Data localisation Click here for Part-I of the article The draft law is a comprehensive piece of legislation that seeks to give individuals greater control over how their personal data is collected, stored and used. Data localisation in draft Bil The PDP Bill enables the transfer of personal data outside India, with the sub-category of sensitive personal data having to be mirrored in the country (i.e. a copy will have to be kept in the country).  Data processing/collecting entities will however be barred from transferring critical personal data (a category that the government can notify at a subsequent stage) outside the country. Purpose of localisation Sovereignty and government functions; referring to the need to recognise Indian data as a resource to be used to further national interest (economically and strategically), and to enable enforcement of Indian law and state functions.  Economic benefits of data localisation will accrue to local industry in terms of creating local infrastructure, employment and contributions to the AI ecosystem.  Protection of civil liberties -the argument is that local hosting of data will enhance its privacy and security by ensuring Indian law applies to the data and users can access local remedies. Analysis of the provision of Data Localisation The earlier version of the bill released by the Justice Srikrishna Committee in 2018 required both personal and sensitive personal data to be mirrored in the country (subject to different conditions) – so as to serve the purposes of data localisation The liberalised provision in 2019 bill is however welcomed by business as it limits the costs of data transfer business and provides a degree of flexibility to them The changes in the 2019 draft reflect a more proportionate approach to the issue as bill provides a tiered system for cross-border data transfer based on the sensitivity/vulnerability of the data This seems to be in accord with the Supreme Court’s dicta in the 2017 Puttaswamy case, where the Court had made it clear that an interference in the fundamental right to privacy would only be permissible if inter alia deemed necessary and proportionate Data Localisation & Protection of User Privacy – Analysis Security of data is determined more by the technical measures, skills, cybersecurity protocols, etc. put in place rather than its mere location. Localisation may make it easier for domestic surveillance over citizens.  The degree of protection afforded to data will depend on the effectiveness of the applicable data protection regime. Insofar as privacy is concerned, this could be equally protected through less intrusive, suitable and equally effective measures such as requirements for contractual conditions and using adequacy tests for the jurisdiction of transfer. Such conditions are already provided for in the PDP Bill as a set of secondary conditions  Further, the extra-territorial application of the PDP Bill also ensures that the data protection obligations under the law continue to exist even if the data is transferred outside the country. The bill has also attracted criticism on other grounds such as  The exceptions created for the state The limited checks imposed on state surveillance Various deficiencies in the structures and processes of the proposed Data Protection Authority Way Ahead: Reforming surveillance related laws  Entering into more detailed and up-to-date mutual legal assistance treaties Enabling the development of sufficient digital infrastructure Creating appropriate data-sharing policies that preserve privacy and other third party rights, while enabling data to be used for socially useful purposes. Conclusion It becomes important for the joint parliamentary committee currently examining the Bill to conduct a more in-depth evaluation of the localisation provisions in the law. The joint parliamentary committee ought to, ideally, identify the need, purpose and practicality of putting in place even the (relatively liberal) measures contained in the PDP Bill. Connecting the dots Should users be given the choice to select where the data can be stored – like in a European Union or California (two jurisdictions which have strong data protection laws and advanced technical ecosystems). Science & Technology Topic: General Studies 3: Science and Technology- developments and their applications and effects in everyday life. 
 Government policies and interventions for development in various sectors and issues arising out of their design and implementation. 5G- Rollout should not be in hurry Central government had set a target of 2020 for the commercial launch of 5G services, largely in line with rest of the world.  What is 5G? It is the next generation cellular technology that will deliver multi-Gbps peak rates, ultra-low latency, massive capacity, and a more uniform user experience Speed will be range of 2-20 Gigabit per second (Gbps) in contrast to 4G link speeds in averaging 6-7 Megabit per second (Mbps) in India But once 5G becomes commercial, users will be required to change their current devices in favour of 5G-enabled ones. Applications of 5G Expansion of wireless technologies —across completely new sectors of the economy from industrial (robotics) to commercial, educational, health care (Tele-surgery), agricultural (sensors), financial (block chain technology) and social sectors (climate studies). Internet-of-Things (IOT)- 5G will form the backbone of IOT. 5G will help in creating cyber-physical networks which not only interconnect people, but also interconnect and control machines, objects, and devices  Sensor-embedded network that will allow real time relay of information across fields such as manufacturing, consumer durables and agriculture.  Smart transport infrastructure -5G will enable vehicle-to-vehicle and vehicle-to-infrastructure communication, making driverless cars, among other things, a reality. Economic Impact of 5G adoption 5G is expected to create a cumulative economic impact of $1 trillion in India by 2035. 5G-enabled digitalisation revenue potential in India will be above $27 billion by 2026.  Additionally, global telecom industry GSMA has forecast that India will have about 70 million 5G connections by 2025. Major challenges of adopting 5G are  Standardisation of 5G: As it stands today, 5G is not a defined standard. Fragmentation of next generation approaches will only mean that development time and costs will increase. Thus, there is a need for standardising an approach and bringing all of the major technology partners on board Huge Investments required for enabling infrastructure: 5G will require a fundamental change to the core architecture of the communication system. Simply upgrading the existing Long Term Evolution core will not be able to support 5G A report on 5G by Deloitte stated that rolling out 5G might require an additional investment of $60-70 billion.  Pricing Issue:  There is a strong correlation between broadband price and adoption levels: for example - 1% increase in mobile broadband prices results in 0.13% decrease in adoption rates (low income) according to International Telecommunication Union And a 1% decrease in mobile broadband adoption results in 0.19% decrease in GDP per capita (low income). 5G enabled Devices & its affordability:  5G smartphone models are likely to cost much more than present phone— with enhanced features, cameras and sensors to support AR and VR applications A significant number (close to 300 million) of users are still on 2G/2.5G networks — and feature phones are widely in use. Device cost is of relevance to a price-sensitive market like India. Financial Health of Telecom Sector: By end of 2019, the industry’s cumulative debt was pegged at around ₹7 lakh crore.  Also, total mobile revenues in India have fallen by more than 20 per cent over past four years.  This restricts telecos capability to roll out 5G in a sustainable manner. Uncertainity in 5G spectrum Auction:  The COAI has also pointed out that 5G is overpriced by at least 30% to 40% compared to international standards and auction in other markets such as South Korea and the U.S.  Telecos have pointed out that the reserve price of these airwaves is very high. Besides, there are currently no India-specific use cases for deployment of 5G. Potential health hazards of tens of thousands of radiating base stations. Even technologically advanced countries like Israel are refusing to implement 5G on account of a host of unknowns like potential health impact of 5G radiations Dependence on China: Huawei which is a Chinese firm owns the majority of 5G technology in the world. However, there are concerns that dependence on China for critical infrastructure like 5Gcould compromise India's security. Conclusion Inspite of the potential benefits of 5G, India needs to be cautious while rolling out 5G. A balanced assessment of its potential applications and demand must be made. Realistic and gradual expansion up the value chain is needed. In this scheme of things, more mature policy making is expected. Connecting the dots US ban on Huawei 5G Spectrum allocation Aggregate Gross Revenue (AGR) issue of telecos and its impact on 5G rollout (TEST YOUR KNOWLEDGE) Model questions: (You can now post your answers in comment section) Note:  Correct answers of today’s questions will be provided in next day’s DNA section. Kindly refer to it and update your answers.  Comments Up-voted by IASbaba are also the “correct answers”. Q1. Which one of the following rivers thrice forks into two streams and reunites a few miles farther on, thus, forming the islands of Srirangapattanam, Sivasamudram and Srirangam?  Cauvery  Tungabhadra Krishna  Godavari Q 2. In which of the following regions of India are shale gas resources found?  Cambay Basin Cauvery Basin Krishna-Godavari Basin Select the correct answer using the code given below.  1 and 2 only  3 only 2 and 3 only 1, 2 and 3 Q3. Which one of the following is not an ASEAN member? Cambodia  China  Laos Philippines ANSWERS FOR 25 FEB 2020 TEST YOUR KNOWLEDGE (TYK) 1 C 2 B 3 D 4 C Must Read About Rise of China : The Hindu About Rights, duties & Constitution : The Hindu About NOTA: The Hindu About Crisis in Malaysia: The Hindu

Feb 26, 2020 Daily Prelims CA Quiz

UPSC Quiz - 2020: IAS Daily Current Affairs Quiz Day 188

UPSC Quiz - 2020: IAS Daily Current Affairs Quiz Day 188 Archives Important Note Don't forget to post your marks in the comment section. Also, let us know if you enjoyed today's test :)  To take the Test - Click Here

Feb 25, 2020 IASbaba's Daily Current Affairs

Daily Current Affairs IAS | UPSC Prelims and Mains Exam – 25th February 2020

IAS UPSC Prelims and Mains Exam – 25th February 2020 Archives (PRELIMS + MAINS FOCUS) Rainfall to increase over next 100 years Part of: GS Prelims –Geography and GS-I- Natural phenomena  In news: IISC research tells: Indian monsoon rainfall increased from the last glacial maximum to the present How? Increasing temperatures result in increase in water vapour in the atmosphere, which causes an increase in the quantum of rainfall.  Concentration of carbon dioxide in the atmosphere going up, resulting in more water vapour, rainfall is expected to increase in the next 100 years. Karnataka and 9 other states accounts for 65% of TB cases Part of: GS Prelims –Sci & Tech and GS-II- Health In news: Assam, Bihar, Madhya Pradesh, Maharashtra, Rajasthan, Tamil Nadu, Uttar Pradesh, and West Bengal are States where TB cases are high. The Union Ministry of Health and Family Welfare takes measures in these States to eliminate TB by 2025 ahead of the Sustainable Development Goals target year of 2030.  IASbaba’s Value addition: Tuberculosis: World Health Organization (WHO) has recently released 2019 Global Tuberculosis (TB) Report. TB remains the top infectious killer in the world claiming over 4,000 lives a day. Eight countries that accounted for two thirds of the global total include India (27%), China (9%) and Indonesia (8%). India (27%), China (9%) and Indonesia (8%) are in WHO’s list of 30 high TB burden countries that accounted for 87% of the world’s cases in 2018. WHO End TB Strategy: Aims to end the global TB epidemic, with targets to reduce TB deaths by 95% cut new cases by 90% between 2015 and 2035, sets interim milestones for 2020, 2025, and 2030. India: The Government has set a target of Zero-Tuberculosis deaths by the year 2025. The Ministry of Health and Family Welfare has launched the National Strategic Plan for TB Elimination in 2017.  National Strategic Plan (NSP) for TB Elimination : VISION: TB-Free India with zero deaths, disease and poverty due to tuberculosis. GOAL: To achieve a rapid decline in the burden of TB, morbidity and mortality while working towards the elimination of TB in India by 2025.  PILLARS : Detect – Treat – Prevent – Build [DTPB] Tuberculosis: Tuberculosis is a contagious airborne disease, which can be acquired from close contact with an infected person. Mycobacterium Tuberculosis Mahadayi project cost skyrockets by 1,674% since inception Part of: GS Prelims –Polity and GS-II- river dispute  In news: Kalasa-Banduri Nala project in the Mahadayi basin drags on over the inter-State river water dispute, the cost over the last 20 years has risen steeply from about ₹94 crore in 2000 to ₹1,677.30 crore now. From Prelims Point Of View Kalasa-Banduri Nala Project Undertaken by the Government of Karnataka to improve drinking water supply to the three districts of Belagavi, Dharwad, and Gadag. Involves building across Kalasa and Banduri, two tributaries of the Mahadayi river to divert water to the Malaprabha river. Malaprabha river supplies the drinking water to Dharwad, Belgaum, and Gadag districts. The Mahadayi Water Disputes Tribunal was set up in 2010. Goa, Karnataka and Maharashtra Mahadayi : The west-flowing river originates in Bhimgad Wildlife Sanctuary (Western Ghats), Belagavi Karnataka. Called as  Mandovi in Goa. Joined by a number of streams to form the Mandovi which is one of two major rivers (the other one is Zuari river) that flows through Goa. [caption id="attachment_57346" align="aligncenter" width="531"] Daily Current Affairs IAS | UPSC Prelims and Mains Exam – 25th February 2020[/caption] Source: Change.org ASI planning barricade around famed stone chariot at Hampi Part of: GS Prelims –Art & culture and GS-I- Heritage In news: Archaeological Survey of India (ASI) is contemplating installing a wooden barricade around the stone chariot inside Vittala Temple complex at the UNESCO World Heritage site of Hampi in a bid to protect it from vandalism. From Prelims Point Of View Hampi : UNESCO world heritage site. Part of the Mauryan Empire 3rd century BC.  The capital city during the four different dynasties in the Vijayanagar city It is located near the Tungabhadra river. Hampi-Vijayanagara was the world’s second-largest medieval-era city after Beijing, Described by UNESCO as an “austere, grandiose site” of more than 1,600 surviving remains of the last great Hindu kingdom in South India. Income scheme to cover fewer farmers Part of: GS Prelims –Polity and GS-II- Policies  In news: One year after the launch of the Pradhan Mantri Kisan Samman Nidhi, the Centre has revised the farmer income support scheme’s beneficiary target down to just under 12 crore from 14 crore From Prelims Point Of View Pradhan Mantri Kisan Samman Nidhi Under this programme, vulnerable landholding farmer families, having cultivable land upto 2 hectares, will be provided direct income support at the rate of Rs. 6,000 per year. This income support will be transferred directly into the bank accounts of beneficiary farmers, in three equal installments of Rs. 2,000 each. Expenditure :  Rs 75000 crore for the scheme will borne by the Union Government in 2019-20. (MAINS FOCUS) Environment Topic: General Studies 3: Conservation, environmental pollution and degradation, environmental impact assessment. 
 Human-wildlife conflict Context Death of four tigers in Mhadei, Goa, and the arrest of the locals who poisoned the animals after their complaints were not attended by forest authorities As a result, CM of Goa stated to demarcate and fence the borders of the wildlife sanctuaries in order to end 80 per cent of the problem. Although the intentions are good, this isn’t a solution. Some examples of human-wildlife conflict include: Predation on livestock or domestic animals by wild animals Damage to crops and fences Wildlife strewing about residential garbage Vehicle/wildlife collisions, aircraft/bird collisions Damage caused by squirrels or bats to fruit and fruit trees Bird nesting in undesirable residential locations Reasons for man-animal conflict: Expansion of human settlements into forests – expansion of cities, industrial areas, railway/road infrastructure, tourism etc. Allowing livestock to graze in forest areas Land use transformations such as change from protected forest patches to agricultural and horticultural lands and monoculture plantations are further destroying the habitats of wildlife. Unscientific structures and practices of forest management in the country Infestation of wildlife habitat by invasive exotic weeds leads to decreased availability of edible grasses for wild herbivores Decreased prey base caused by poaching of herbivores has also resulted in carnivores moving out of forests in search of prey and to indulge in cattle lifting. India’s Conservation culture Despite a billion people India still has most of our large wildlife species- India today has the largest population of the tiger, Asian elephant, leopard, sloth bear, gaur and many others Part of Culture: People have accepted coexistence of human & animals, and incorporated it in our culture. All our deities have animals associated with them; it shows the inclusion of these animals in our mind space. The Velip community in Goa worship the tigers and this practice is done even today. Animals are viewed also as renewable resource: Unlike activities such as mining, tigers are a renewable resource. They are always going to be there, and so will the rivers and the forests, giving the local people income and development — as long as there are tigers. Fencing is not the solution but alternative measures like: Inclusion of local community in forest wildlife management To ensure that money which comes in through tourism (of Tiger reserves) should be used for the development of the local villages as has been done in Tadoba tiger reserve, Maharashtra Also, compensation procedures need to be improved- In Maharashtra, a decade ago, the compensation amount was poor, and the process was cumbersome as well as time consuming. Today, a helpline has been established, compensation rates have increased vastly, and the process is under the Right to Services Act Conclusion The solutions are simple: Inclusive development with a long-term vision that cares for the environment. We need to involve local communities who will be the custodians of the tigers and tigers who can, in turn, provide the communities much-needed development in such remote areas. Did You know about these Innovative practices to minimise man-animal conflicts ? In the Western Ghats of India, a new conservation initiative has utilized texting as an early warning system to prevent human-elephant encounters. Elephant tracking collars embedded with SMS chips automatically text nearby residents, warning them of recent elephant movements. In Canada, authorities have constructed wildlife corridors, areas of preserved native habitat in human dominated regions, providing wildlife with a safe pathway as they travel between one to another. To keep elephants at a safe distance from their farms and homes, some African villagers have turned to two unlikely, all-natural solutions: bees and hot peppers. Elephants dislike the chemical capsaicin found in chili peppers, prompting farmers in Tanzania to smother their fences with a mixture of oil and chili peppers. Governance Topic: General Studies 2: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.  Statutory, regulatory and various quasi-judicial bodies. Personal Data Protection (PDP) Bill, 2019 – Part I The bill was introduction of in Lok Sabha during the winter session of Parliament. The Bill was referred to a joint parliamentary committee, which is currently engaged in a process of public consultation. The draft law is a comprehensive piece of legislation that seeks to give individuals greater control over how their personal data is collected, stored and used.  The Bill also establishes a Data Protection Authority for the same.  Some of the other features of the bill are: Applicability: The Bill governs the processing of personal data by: (i) government, (ii) companies incorporated in India, and (iii) foreign companies dealing with personal data of individuals in India.  Obligations of data fiduciary: Personal data can be processed only for specific, clear and lawful purpose.   All data fiduciaries must undertake transparency & accountability measures such as:  Implementing security safeguards (such as data encryption and preventing misuse of data), and Instituting grievance redressal mechanisms to address complaints of individuals.   Institute mechanisms for age verification and parental consent when processing sensitive personal data of children. Rights of the individual: This includes Right to Obtain confirmation from the fiduciary on whether their personal data has been processed Seek correction of inaccurate, incomplete, or out-of-date personal data Restrict continuing disclosure of their personal data by a fiduciary Grounds for processing personal data Data Processing only if consent is provided by the individual.  However, in certain circumstances, personal data can be processed without consent.  These include:  If required by the State for providing benefits to the individual Legal proceedings  To respond to a medical emergency. Social media intermediaries: The Bill defines these to include intermediaries which enable online interaction between users and allow for sharing of information.  All such intermediaries which have users above a notified threshold, and whose actions can impact electoral democracy or public order, have certain obligations, which include providing a voluntary user verification mechanism for users in India. Transfer of data outside India:  Sensitive personal data may be transferred outside India for processing if explicitly consented to by the individual, and subject to certain additional conditions.  However, such sensitive personal data should continue to be stored in India.   Certain personal data notified as critical personal data by the government can only be processed in India.  Sharing of non-personal data with government:  The central government may direct data fiduciaries to provide it with any non-personal data and anonymised personal data (where it is not possible to identify data principal) for better targeting of services. Exemptions: The central government can exempt any of its agencies from the provisions of the Act in interest of security of state, public order, sovereignty and integrity of India and friendly relations with foreign states, Amendments to other laws: The Bill amends the Information Technology Act, 2000 to delete the provisions related to compensation payable by companies for failure to protect personal data. Part –II – Will cover the criticism of the bill with focus on data localisation Connecting the dots Justice B.N.Srikrishna Committee report EU data regulations (TEST YOUR KNOWLEDGE) Model questions: (You can now post your answers in comment section) Note:  Correct answers of today’s questions will be provided in next day’s DNA section. Kindly refer to it and update your answers.  Comments Up-voted by IASbaba are also the “correct answers”. Q 1. For short-term climatic predictions, which one of the following events, detected in the last decade, is associated with occasional weak monsoon rains in the Indian sub-continent?  La Nina Movement of Jet Stream El Nino and Southern Oscillations Greenhouse effect at global level Q 2. According to the World Health Organisation (WHO), the disease which causes the death of the largest number of people today is  AIDS  Tuberculosis Malaria Ebola Q 3. Which one of the following antimicrobial drugs, is suitable for treatment of both tuberculosis and leprosy?  Isoniazid  P-aminosalicylic acid Streptomycin  Rifampicin Q 4. Where is the famous Vijaya Vittala temple having its carved pillars emitting musical notes and Virupaksha temple located? Belur  Bhadrachalam  Hampi  Srirangam Must Read About Syria’s Civil War : The Hindu About Judiciary : The Hindu About Sri Lanka refugees: The Hindu About Trumps Visit and Indo-US relationship: The Hindu

Feb 25, 2020 RSTV Video

Coronavirus & Impact on Economy – The Big Picture – RSTV IAS UPSC

Coronavirus & Impact on Economy Archives Topic: General Studies 2: Effect of policies and politics of developed and developing countries on India’s interests, Indian diaspora. Issues relating to development and management of Social Sector/Services relating to Health. In News: Nearly two decades have passed since a coronavirus known as SARS emerged in China, killing hundreds of people and sparking panic that sent a chill through the global economy. The virus now rampaging across China could be much more damaging. The human cost of the coronavirus outbreak is climbing across China and beyond. The economic cost is also mounting. That damage is, for the most part, not due to the virus itself, but due to efforts to prevent it from spreading.  China has become an indispensable part of global business since the 2003 SARS outbreak. It's grown into the world's factory, churning out products such as the iPhone and driving demand for commodities like oil and copper. The country also boasts hundreds of millions of wealthy consumers who spend big on luxury products, tourism and cars. China's economy accounted for roughly 4% of world GDP in 2003; it now makes up 16% of global output. SARS sickened 8,098 people and killed 774 before it was contained. The new coronavirus, which originated in the central Chinese city of Wuhan, has already killed more than 900 people and infected over 40,000 across at least 25 countries and territories. Chinese officials have locked down Wuhan and several other cities, but the virus continues to spread. Why is China so important to the global economy? China’s extraordinary economic surge over the past 40 years has resulted in it becoming the world’s second biggest economy, with a GDP of $13.6tn (£10.4tn) (compared with $20.5tn for the US). Annualised growth of 7% and more – way beyond the capacity of developed economies – has become the norm. [caption id="attachment_57340" align="aligncenter" width="624"] Coronavirus & Impact on Economy – The Big Picture – RSTV IAS UPSC[/caption] China reached this position by supplanting the US as the fulcrum of global trade. Beijing is the largest trader of merchandise in the world, and is fast catching the US in commercial services following an 18% growth spurt in 2018. The long-held practice of sourcing components and widgets from Chinese companies, and the country’s vast and growing domestic market, has encouraged thousands of foreign businesses to open their own factories on the mainland, join local distribution networks and open shops. China is also central to a diverse range of global supply chains: much of the world’s raw materials travel to China before being turned into a manufactured product. Last year’s battle with the US over import tariffs on billions of dollars’ worth of goods illustrated the power of the Chinese economy to disrupt and disturb the global outlook. What is happening? Transportation There are strict restrictions on moving out of Wuhan, where the outbreak began, a city with a population of 11 million. The lockdown, also now extended to other parts of Hubei province, prevents business-related travel as well as the movement of goods and workers. The impact is not confined to China. International retailers have closed operations in China.  Several overseas airlines have stopped flights to China and international hotel chains have been offering refunds.  Supply Chain And beyond that, there is growing concern about integrated international supply chains. Hyundai, of South Korea, has suspended its car production because of problems with the supply of parts from its operation in China - an early warning sign of possible extensive disruption ahead.  Prices for key industrial raw materials such as copper, iron ore, nickel, aluminum and liquid natural gas have plummeted since the virus emerged.  And manufacturers, mining companies and commodity producers of all stripes are weighing whether they will be forced to cut back on production for fear of adding to a growing inventory glut. The woes of the commodities markets — arguably the worst-performing asset in financial markets this year — reflect the basic reality that China’s industry-heavy economy is the most important consumer of raw materials on earth. For some, the decline in copper is an ominous sign: Copper has long been considered an unofficial leading indicator of the direction of the global economy, because of its close connection to the industrial sector. Global condition Currencies of countries that export these goods at high rates, including Brazil, South Africa and Australia, are near their lowest levels in recent memory.  Debt levels have soared in the United States, Japan and key European countries including Italy, limiting the scope for a big fiscal stimulus if the world economy goes into another tailspin. Global debt, including borrowing by households, governments and companies, has jumped to more than three times the size of the global economy, the highest ratio on record, according to the Institute of International Finance. Economists say the current level of disruption is manageable. If the number of new coronavirus cases begins to slow, and China's factories reopen soon, the result will be a fleeting hit to the Chinese economy in the first quarter and a dent in global growth. If the virus continues to spread, however, the economic damage will increase rapidly. [caption id="attachment_57339" align="aligncenter" width="547"] Coronavirus & Impact on Economy – The Big Picture – RSTV IAS UPSC[/caption] Epidemic risk Economists have a hard time working out the potential costs of epidemics because of their unique characteristics. Yet diseases can be far more damaging than natural disasters such as hurricanes or a tsunami, or other unpredictable events known as "black swans."  According to a study by the World Bank, a severe pandemic could cause economic losses equal to nearly 5% of global GDP, or more than $3 trillion. Losses from a weaker flu pandemic, such as the 2009 H1N1 virus, can still wipe 0.5% off global GDP. The virus is not the driving factor behind those losses, however. Instead, it's the way consumers, businesses and governments respond to an outbreak that matters most. People are more likely to stay home during an outbreak to avoid getting sick, preventing them from traveling, shopping and working. Doing so limits demand for consumer goods and energy. Decisions by companies and governments to close shops and idle factories, meanwhile, curtail production. Is there a way ahead? China's government has moved quickly to counter the economic fallout from the coronavirus and the measures taken to contain it. The People's Bank of China cut a key interest rate and injected huge amounts of cash into markets in order to help take the pressure off banks and borrowers. Officials have also announced new tax breaks and subsidies designed to help consumers. Yet China is also more vulnerable to a crisis than it was 17 years ago when SARS broke out. It has much higher debt, trade tensions with a major trading partner and its growth has been steadily slowing down for a number of years, which gives a weak starting point to face such a crisis. Analysts at Capital Economics expect the government to announce additional measures in the coming days. If the virus keeps spreading, they believe that Beijing will have to abandon its long-running efforts to get its debt under control and pump money directly into the economy. Note: Pangolins be the source of novel coronavirus The genome sequence of the coronavirus isolated from pangolins was 99 per cent identical with that separated from infected humans. Pangolins are considered to be one of the most trafficked animals in the world and are classified as a critically endangered species People who sell pangolins can be imprisoned for a period of 10 years or morepoached every year due to their “medicinal value” and the consumption of their meat in countries such as China and Vietnam. It is believed that the novel coronavirus spread from the seafood market in Wuhan, where live animals are sold The SARS coronavirus, which was identified in 2003, is believed to have spread from bats to civet cats to human beings. Connecting the Dots: A severe pandemic would resemble a global war in its sudden, profound, and widespread impact. Explain.

Feb 25, 2020 Daily Prelims CA Quiz

UPSC Quiz - 2020: IAS Daily Current Affairs Quiz Day 187

UPSC Quiz - 2020: IAS Daily Current Affairs Quiz Day 187 Archives Important Note Don't forget to post your marks in the comment section. Also, let us know if you enjoyed today's test :)  To take the Test - Click Here

Feb 24, 2020 IASbaba's Daily Current Affairs

Daily Current Affairs IAS | UPSC Prelims and Mains Exam – 24th February 2020

IAS UPSC Prelims and Mains Exam – 24th February 2020 Archives (PRELIMS + MAINS FOCUS) Regional integration pegged to SAARC revival Part of: GS Prelims –Polity and GS-II- International relations In news: Sri Lanka’s former Prime Minister Ranil Wickremesinghe said : Postponement of the Kathmandu SAARC Summit in 2017 due to heightened tensions between India and Pakistan had brought the regional grouping “to a standstill”. Successful regional integration both economic and security depends on SAARC becoming fully functional at the highest levels BIMSTEC is not a substitute for SAARC Proposed  an ‘Economic Integration Road Map (EIRM)’ : a “sub-region”, consisting of the five southern States of India, Sri Lanka (Population of 300 million people and a combined GDP of over $500 billion) From Prelims Point of View: South Asian Association for Regional Cooperation (SAARC) Established with the signing of the SAARC Charter Dhaka  Headquarters and Secretariat Kathmandu, Nepal. Framework of the SAARC: Respect for the principles of sovereign equality, territorial integrity, political independence, non-interference in the internal affairs of other States and mutual benefit. SAARC comprises of eight member States Afghanistan Bangladesh Bhutan India Maldives Nepal Pakistan Sri Lanka Observers to SAARC, are: (i) Australia; (ii) China; (iii) the European Union; (iv) Iran; (v) Japan; (vi) the Republic of Korea; (vii) Mauritius; (viii) Myanmar; and (ix) the United States of America. BIMSTEC Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) is a regional multilateral organisation. Members:    Bangladesh Bhutan India Nepal Sri Lanka Myanmar Thailand Features Connects South and Southeast Asia Connects ecologies of the Great Himalayas and the Bay of Bengal. Aims To create an enabling environment for rapid economic development Accelerate social progress , Promote collaboration on matters of common interest in the region. Sub-regional organization came into being in 1997 through the Bangkok Declaration Creating an enabling environment for the rapid economic development of the sub-region. Encouraging the spirit of equality and partnership. Promoting active collaboration and mutual assistance in the areas of common interests of the member countries Accelerating support for each other in the fields of education, science, and technology, etc. Malai Mahadeshwara Wildlife Sanctuary to be a tiger reserve Part of: GS Prelims –Environment  and GS-II- Conservation In news: Approval from the NTCA (National Tiger Conservation Authority) is expected to notify the Malai Mahadeshwara Wildlife Sanctuary as a tiger reserve. From Prelims Point of View: Project Tiger: Launched in 1973 with 9 tiger reserves Currently, The Project Tiger coverage has increased to 50 tiger reserves are constituted on a core/buffer strategy. Centrally Sponsored Scheme of the Ministry of Environment, Forests and Climate Change providing central assistance to the tiger States National Tiger Conservation Authority (NTCA) : Statutory body by 2006 amendment of Wildlife (Protection) Act, 1972. Launched in 2005ecommendations of the Tiger Task Force.  Supervisory/coordination role, performing functions as provided in the Wildlife (Protection) Act, 1972 M-STrIPES (Monitoring System for Tigers - Intensive Protection and Ecological Status) is an app based monitoring system, launched across Indian tiger reserves by the NTCA in 2010. Two tamers, including student, killed in jallikattu events in Tamil Nadu Part of: GS Prelims –Culture and GS- I- Festival  From Prelims Point of View: Jallikattu is referred to as bull taming event  Practiced in Tamil Nadu as a part of Pongal  ‘jallikattu' is derived from Tamil words Jalli refers to gold or silver coins ,Kattu means 'tied'. Found mentioned in the Sangam literature (2500 years ago). Controversial : Because the sport often results in major injuries and even deaths of both bulls and humans. Law: Supreme Court in 2014 banned Jallikattu in response to Animal Welfare Board of India (AWBI) and People for Ethical Treatment of Animals (PETA) petitions citing cruelty to animals. The article 51A of the constitution states that citizens should safeguard the wildlife and forests and have compassion for living creatures. (MAINS FOCUS) Governance Topic: General Studies 2: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.  Issues related to Health Swachh Bharat Mission and Jal Jeevan Mission Context India participated in ministerial round table discussion on “Scaling Up Sanitation in Africa” held at Addis Ababa One of the biggest hurdles African ministers faced in replicating the SBM model in their countries was that they were not able to convince their finance ministries to invest heavily in sanitation like India has done since 2014. Some of the reasons which has led to success of SBM in India are: Political Will especially from the very top. Prime Minister of India provided leadership to the movement and made SBM one of the government’s flagship programme. Large investment on sanitation through public financing:  the central and state governments have invested in excess of one lakh crore on sanitation over 2014-19 period Civil Society movement: Media and NGOs realized the socio-economic significance of sanitation. These groups owned up the scheme and made it into social movement which led to behavioural changes at ground level. Community Ownership: The scheme relied upon the community owning up the scheme (through rankings of cities, declaration of ODF villages) instead of government bureaucracy led scheme. This led to sustenance of progress made during initial period. 95% of people with access to toilets in rural India used them regularly, Returns on these investments in sanitation (through SBM): UNICEF estimated that investments in sanitation in India are yielding a 400 per cent return  Each rural household in an open-defecation-free village saving Rs 50,000 on account of avoided medical costs and time savings. The Toilet Board Coalition has estimated that the sanitation infrastructure and services market in India will be worth over $60 billion by 2021 –creating many jobs even in the rural parts of the country. A study by UNICEF has estimated that SBM resulted in creating over 75 lakh full time equivalent jobs over the past five years, giving the rural economy a major boost. On October 2, 2019, PM Modi commemorated the ODF declaration by all states and stated that the focus in future has to be on sustaining the success and moving towards ODF++ strategy The next Critical service area which government considers as key pillar for broader rural development is Water. As a result, Government announced Jal Jeevan Mission on August 15th 2019. The goal of JJM is to ensure piped water supply for all households of India by 2024 with commitment of Rs 3.6 lakh crore of central and state funds for the scheme. In the Union budget for 2020-2021, the government has already allocated Rs 11,500 crore for JJM, with an additional Rs 12,000 crore being made available through extra budgetary resources In addition, a huge impetus to the rural water supply and sanitation sector is the earmarking of 50% of the Rs 60,750 crore grant for rural local bodies provided under the 15th Finance Commission for drinking water and sanitation.  This ensures that the scheme is driven by local bodies and are sufficiently financed by the government to make it a success Conclusion Investment in sanitation and water is actually a facilitator for broader economic, health and social gains as indicated in UNICEF studies. Government should replicate the model of sanitation, which has led to its success, in the area of water also to bring inclusive development in the country. Connecting the dots NITI Aayog’s Composite Water Management Index Ministry of Jal Shakti (merging of two ministries and reasons) Do you know? ODF protocol - Not a single person is found defecating in the open. ODF+ protocol- Not just open defecation but also no public urination. Additionally, all community & public toilets need to be functional and well-maintained. ODF++ protocol adds the condition that faecal sludge/septage and sewage is safely managed and treated, with no discharging and/or dumping of untreated faecal sludge/septage and sewage in drains, water bodies or open areas. International Affairs Topic: General Studies 2: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests. Effect of policies and politics of developed and developing countries on India’s interests India- US relationship: Trump Visit to India Context During Mr. Trump’s visit to India on Feb 24-25, there is the prospect of more cooperation on trade and tariffs and also the possibility of major defence deals. US-India Trade U.S.-India trade in goods and services has grown at a steady clip from $16-billion to $142-billion during 1999-2018. However, the trade growth is not without wrinkles. U.S. and Indian officials have disagreed for years on tariffs, foreign investment limitations, agricultural trade, medical devices, digital economy and IPR issues At the heart of Trump’s foreign policy strategy are concerns about the trade deficit that the U.S. has with its economic partners worldwide, although India does not rank among the top 10 in this regard. In 2019 India’s trade deficit with the U.S. of $23.3-billion is dwarfed by China’s corresponding figure of $346-billion Chronology of U.S.-India trade squabbles In March 2018, the Trump administration slapped “national security” tariffs of 25% on $761-million worth of steel and of 10% on $382-million of aluminium imported from India Trump administration ended a year-long review of the U.S. Generalised System of Preferences (GSP) in June 2019 by removing India from the tariff concession system.  These measures are said to have impacted nearly $5.8 billion of India’s exports, or more than 12% of exports to the U.S. in 2017. India immediately imposed higher retaliatory tariffs on 28 U.S. products including almonds, walnuts, cashews, apples, chickpeas, wheat, and peas. U.S. also recently changed the status of India, among other countries, to a “developed” country, to further reduce trade concessions that it could receive from the U.S. India has expressed its concern regarding restrictions on visas for highly skilled professionals seeking to take up employment in the U.S, even though laws that brought in restrictions, for example by imposing higher visa fees, were passed before Mr. Trump entered office. Hope for a positive announcement on trade? There were initial signs that a “limited trade deal” might be hammered out when Mr. Trump and Mr. Modi meet.  However, the aspiration of trade deal fell through when it became clear that nothing on that scale would be finalised until after November 2020 US Presidential elections. There is however possibility of a “mini trade deal” or more simply a smaller trade package announcement. This might include an increase in India’s LNG imports from the U.S. An MoU for India’s gas importer Petronet to invest $2.5 billion in U.S. company Tellurian Inc’s LNG project, that was signed during Mr. Modi’s visit to Houston, is likely to be formalised during Mr. Trump’s visit India – US defence prospects (during Trumps Visit) There is more positive news on the defence cooperation with the likely announcement during the visit of Mr. Trump of a deal for 24 Lockheed Martin-built MH-60R Seahawk Multi-Role Helicopters for the Indian Navy. These 24 helicopters, said to be worth $2.4-billion, are likely to be procured through the Foreign Military Sales route of the U.S. government. India’s Cabinet Committee on Security has cleared their purchase  India and the U.S. are also said to be in negotiations regarding India’s potential purchase of drones, additional P-8I long-range, multimission maritime patrol aircraft and also Raytheon intelligence, surveillance, target acquisition and reconnaissance (ISTAR) aircraft. India – US Strategic prospects (during Trumps Visit) Trump has reiterated his promise withdraw US troops in Afghanistan with the prospects of US- Taliban deal This might lead to revival of the Taliban’s influence, Pakistan-based terror elements or Pakistan’s ISI gaining a stronger foothold in the power vacuum that will inevitably develop there. This could compromise Indian interests considerably Way forward India should come out with well defines Strategic Policy in its western sphere, which includes maritime arena also (Western Indian Ocean). India should improve the competitiveness of its own industries to make its products & services attractive to consumers so that they are able to overcome obstacles imposed temporarily by foreign governments. Connecting the dots US-China Trade war India not joining RCEP trade deal Indo-US 2015 joint Vision of Indo-Pacific (TEST YOUR KNOWLEDGE) Model questions: (You can now post your answers in comment section) Note:  Correct answers of today’s questions will be provided in next day’s DNA section. Kindly refer to it and update your answers.  Comments Up-voted by IASbaba are also the “correct answers”. Q 1. Apart from India, Pakistan and Bangladesh who are the other member countries of SAARC? Nepal, Bhutan, Thailand and Singapore Nepal, Bhutan, Malaysia and Maldives Nepal, Bhutan, Maldives, Sri Lanka and Afghanistan Nepal, Bhutan, Singapore and Sri Lanka Q 2. Consider the following statements:  M-STrIPES is launched by the Environment (Protection) Act, 1986. National Tiger Conservation Authority is a statutory body. . National Tiger Conservation Authority is chaired by the Prime Minister. Which of the statements given above is/are correct? 1 only  2 and 3 only 2 only  1, 2 and 3 Q 3. The term M-STRIPES' is sometimes seen in the news in the context of  Captive breeding of Wild Fauna Maintenance of Tiger Reserves Indigenous Satellite Navigation System Security of National Highways ANSWERS FOR 22 FEB 2020 TEST YOUR KNOWLEDGE (TYK) 1 B 2 B Must Read About inequality & resource distribution : The Hindu About Youth being advantage for India : The Hindu About downtrodden & affirmative action: The Hindu

Feb 24, 2020 Daily Prelims CA Quiz

UPSC Quiz - 2020: IAS Daily Current Affairs Quiz Day 186

UPSC Quiz - 2020: IAS Daily Current Affairs Quiz Day 186 Archives Important Note Don't forget to post your marks in the comment section. Also, let us know if you enjoyed today's test :)  To take the Test - Click Here