RBI cuts rates to spur growth

GS PAPER - 02 GOVERNANCE - Statutory, regulatory and various quasi-judicial bodies Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

Context:

     ★ RBI's monetary policy committee, led by Governor Shaktikanta Das, cut its repo rate by 25 basis points to 6.25 per cent and changed its stance to 'neutral' from 'calibrated tighetening'.

     ★ The rate reduction was the first since August 2017.

Highlights of Monetary policy review:

     ★ The RBI also simultaneously changed the stance of the policy to ‘neutral’ from ‘calibrated tightening,’ which indicates that the central bank remains ready to move in either direction based on incoming data.

     ★ RBI has taken this decision because India’s consumer price based inflation is averaged at 3 per cent in last five months against RBI’s Parliament-mandated target of 4 per cent.

     ★ With the RBI cutting interest rate, the banks may pass the benefit to customers and slash their marginal cost of funds based lending rates (MCLR).

     ★ The transmission of this rate cut should reduce the borrowing costs of retail borrowers, MSMEs and corporates, thereby boosting private consumption. This will help in achieving the interim budget’s objective of stimulating private consumption and housing demand.

     ★ Growth projections falling in the range of 7.2-7.4%, from 7.5% posited in the RBI’s December statement due to contracted production and import of capital goods, shortfall of 4% in rabi sowing across various crops and slowdown in farm output growth.

     ★ RBI’s policy fails to make any statement regarding fiscal prudence and there is a fear that government’s fiscal deficit target of 3.4 percent for next fiscal was a bit too optimistic and the excess borrowing could lead to higher inflation.

         

Repo rate:      ★ Repurchase Options or in short Repo, is a money market instrument, which enables collateralised short term borrowing and lending through sale/purchase operations in debt instruments.      ★ This is an instrument used by the Central Bank and banking institutions to manage their daily / short term liquidity.      ★ Repo rate is the rate at which the central bank of a country (Reserve Bank of India in case of India) lends money to commercial banks in the event of any shortfall of funds.      ★ Repo rate is used by monetary authorities to control inflation.      ★ In the event of inflation, central banks increase repo rate as this acts as a disincentive for banks to borrow from the central bank. This ultimately reduces the money supply in the economy and thus helps in arresting inflation.      ★ The central bank takes the contrary position in the event of a fall in inflationary pressures.      ★ Repo and reverse repo rates form a part of the liquidity adjustment facility.

 

                                                                                                                                 Source:- The Hindu

Only 50% of PAN linked to Aadhaar

GS PAPER - 02 GOVERNANCE - Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

Context:

    ★ With less than two months to go for the deadline to link Permanent Account Number (PAN) and Aadhaar, only a little more than half of PAN holders have linked them, Central Board of Direct Taxes Chairman Sushil Chandra said.

Linking of PAN with Aadhaar:

     ★ Supreme Court ruled that the linking of PAN with Aadhaar is mandatory to file income tax returns from April 1, 2019 onward, it is mandatory for even those who do not need to file returns.

     ★ According to Section 139AA of the Income Tax Act, not only is PAN mandatory for filing income tax returns but it is also mandatory to link Aadhaar while applying for PAN card.

     ★ In case of failure to link the Aadhaar number, the permanent account number shall be deemed to be invalid.

Why linking of PAN and Aadhaar is Mandatory?

     ★ To avoid tax evasion because number of PAN card holders far exceeds the number of people filing income tax returns.

    ★ Income tax returns filed stands at just about 16% of the total number of PANs allotted.

Issues :

     ★ One major problem arising out of the mandatory linking of the two IDs is that many people in South India have name mismatch.

     ★ Many people have abbreviations in their names in Aadhaar, whereas the PAN does not allow abbreviations.

Way forward:

     ★ They could possibly allow name mismatches, but then ensure that the other details such as date of birth, address, etc, are matching so that there is no erroneous linkage of PAN and Aadhaar.

                                                                                                               Source:- The Hindu

Naveen unveils statue of Guru Padmasambhava

GS PAPER - 01 - Indian culture

Context:

     ★ Odisha Chief Minister Naveen Patnaik unveiled a 19-foot-high statue of Guru Padmasambhava, the founder of Tibetan Buddhism, at Jirang in Gajapati district.

     ★ This 29 tonne stone statue is placed in the middle of ‘Padma Sarovar’, a large tank near Padmasambhava Mahavihara, the largest Buddhist monastery in eastern India.

    ★ The statue of Guru Padmasambhava has been sculpted by noted sculptor Padmashri Prabhakar Moharana.

Guru Padmasambhava:

     ★ Historians claim that Guru Padmasambhava, also known as second Buddha, was born and brought up in Odisha before he left for Tibet.

     ★ Guru Padmasambhava was known in Tibet as one of the founding fathers of Tibetan Buddhism, who appeared in Tibet in 749 A.D, and spent 54 years. Other two founders were Acharya Shanta Rakshita and prevalent King Thisong Deotsen.

                                                                                                                        Source:- The Hindu

Kerala to get country’s 2nd longest rail tunnel

GS PAPER - 03 ECONOMY - Infrastructure: Energy, Ports, Roads, Airports, Railways etc.

Context:

     ★ A 10.7-km railway line, including a 9.02-km tunnel, has been proposed to connect the upcoming Vizhinjam International Multipurpose Deepwater Seaport to the railway network.

     ★ The 9.02-km tunnel, mooted by Konkan Railway Corporation Ltd (KRCL) from near the Balaramapuram station on the Kanyakumari-Thiruvananthapuram railway line, will be the second longest railway tunnel in the country.

    ★ The 11.26-km Pir Panjal rail tunnel, connecting Banihal and Hillar Shahabad, is the longest.

More about the Project:

     ★ The KRCL, in its draft Detailed Project Report (DPR) submitted to Vizhinjam International Seaport Limited (VISL) — a special purpose company supervising the execution of the seaport project — has favoured the railway tunnel from Balaramapuram in view of the 35-metre level difference between the port and the highest ground level, undulating terrain, and local population.

     ★ The proposed railway line from Balaramapuram to Vizhinjam will be a single line and will be sufficient for the movement of 9 to 10 rakes daily through the corridor for the next 20 years, according to KRCL.

    ★ The KRCL, experts in constructing tunnels, was roped in after Rail Vikas Nigam Ltd under the Union Ministry of Railways backed out from the seaport connectivity project. The plan is to establish the railway link by May 2022.

    ★ The development of the Balaramapuram railway station is being explored as part of the rail link to the seaport.

          

                                                                                                                   Source:- The Hindu

Medical journals’ publisher under fire

GS PAPER - 02 GOVERNANCE - Issues relating to development and management of Social Sector/Services relating to Health, Education, Human Resources.

Context:

    ★ The Indian Journal of Clinical Practice (IJCP) Group, a doctor-run publisher of medical journals, has come under flak from public health experts for partnering with American e-cigarette maker Juul Labs Inc. Juul, which is evaluating an entry into India, has retained the Group to “better understand the India market,” a spokesperson from the company told.

     ★ Public health experts say it is unethical for journal editors to have financial ties with an e-cigarette maker, especially since the U.S.-based tobacco firm Altria Group is an investor in Juul.

E - cigarettes:

     ★ An electronic cigarette (or e-cig) is a battery-powered vaporizer that mimics tobacco smoking. It works by heating up a nicotine liquid, called “juice.”

     ★ Nicotine juice (or e-juice) comes in various flavors and nicotine levels.

     ★ e-liquid is composed of ingredients such as :

     ★ vegetable glycerin (a material used in all types of food and personal care products, like toothpaste) and

     ★ propylene glycol (a solvent most commonly used in fog machines.)

    ★ propylene glycol is the ingredient that produces thicker clouds of vapor.

E - Cigarettes - tricky question:

     ★ E-cigarettes, which dispense nicotine by heating a liquid, are a controversial subject.

     ★ Even though their aerosols are thought to contain fewer carcinogens than cigarette smoke, experts are divided about their safety.

     ★ India’s Union Ministry of Health and Family Welfare favours a ban, and has advised all States to clamp down on the sales and manufacture of these products.

     ★ However, some experts say e-cigarettes can be a part of “harm reduction” policies, because they are a comparatively safe alternative to combustible cigarettes.

        

Far from Clear:

    ★ Despite studies such as the one by NEJM, the benefits of e-cigarettes are far from clear. Their addictive-potential is not understood, and some studies show that they can act as a gateway drug for adolescents.

     ★ “Until independent large scale cohort studies among smokers and mixed tobacco users of varying intensity prove harm reduction benefits of ENDS (Electronic Nicotine Delivery Systems), the introduction of any new technology is a big risk to public health” .

     ★ Another factor muddying the evidence around e-cigarettes is that the tobacco industry funds several harm-reduction initiatives, leading to worries that it may be distorting data.

     ★ For this reason, the World Health Organisation said in a statement in September 2018 that any industry-funded research “cannot be taken at face value.”

                                                                                                                      Source:- The Hindu

NGOs call for funds to eliminate TB

GS PAPER - 02 GOVERNANCE - Issues relating to development and management of Social Sector/Services relating to Health, Education, Human Resources.

Context:

     ★ At the India Showcase Event– a preparatory meeting before the Global Fund’s Sixth Replenishment (2020-2022),Non-governmental organisations (NGO) working to eliminate tuberculosis have urged the government to ensure that the National Strategic Plan for 2017-2025 is fully funded and effectively implemented to eliminate tuberculosis.

More about the news:

     ★ NGOs and other stakeholders have further committed to support the government to

     ★ create person-centred, rights-based and gender-sensitive response to TB,

     ★ facilitate last-mile support to TB patients through partnerships with service providers and

     ★ Provide real-time data on TB cases for an early warning.

Global Fund to Fight AIDS, Tuberculosis and Malaria :

     ★ It is an international financing organization that mobilizes and invests funds in multi-year cycles known as Replenishments, to support national programs aiming at controlling the epidemics of HIV/AIDS, tuberculosis and malaria.

     ★ India has been associated with GFATM since 2002 both recipient and donor.

     ★ Founded in 2002, the Global Fund is a partnership between governments, civil society, the private sector and people affected by the diseases.

     ★ The organization maintains its secretariat in Geneva, Switzerland.

           

Tuberculosis:     ★ Tuberculosis is an infectious, airborne disease caused by the bacterium Mycobacterium tuberculosis. It mainly affects the lungs. It can be transmitted from person to person through the air when people with TB cough, sneeze, laugh or speak, spit, propelling the germs into the atmosphere      ★ With proper diagnosis and treatment, TB can be cured. However, too many people with TB don’t seek care for early symptoms and get properly diagnosed. Of those in whom the disease is detected, many do not complete their treatment.      ★ The disease also has been reported to be main cause of deaths related to antimicrobial resistance and the leading killer of people with HIV.     ★ The biggest challenge was underreporting and underdiagnosis of TB cases, especially in countries with weak health systems and large unregulated private sectors. WHO Global TB Report - 2018:      ★ India has the highest burden of TB and multi-drug-resistant TB (MDR-TB) -an infectious airborne bacterial disease caused by Mycobacterium tuberculosis. Steps taken to control TB in India:      ★ Revised National Tuberculosis Control Program (RNTCP) :which focuses on case-detection and TB treatment through Directly Observed Treatment-Short Course (DOTS) strategy      ★ National Strategic Plan (NSP), 2017-2025 -a framework to provide guidance for the activities of various stakeholders to reduce the burden of TB mortality and morbidity, and work towards the elimination of TB in India by 2025- 5 years ahead of the Sustainable Development Targets (SDG 3.3) which calls to end the epidemics of AIDS, tuberculosis, malaria, among others, by 2030.

 

                                                                                                   Source:- The Hindu

Taxpayers, MPs, MLAs can’t avail farm income support

GS PAPER - 02 GOVERNANCE - Welfare schemes for vulnerable sections of the population by the Centre and States and the performance of these schemes

Context:

     ★ Government has announced income support scheme for farmers in Interim Budget 2019 which envisages the payment of Rs 6,000 per annum to marginal and small farmers (each holding cultivable land up to 2 hectares).

     ★ In respect of the IT assessees, those who paid the tax in the last assessment year would be ineligible under the scheme.

More about the news:

    ★ The Centre has made it clear that the cut-off date for determination of eligibility of beneficiaries under the scheme is February 1, 2019, and no subsequent changes would be considered for the eligibility of benefit for 5 years.

     ★ However, the benefit would be allowed in cases where transfer of ownership of cultivable land takes place on account of succession due to death of the landowner

    ★ Cases where the transfer of ownership of land happened due to reasons such as purchase, succession, and through will or gift, between December 1, 2018, and January 31, 2019, would be eligible for coverage.

    ★ Government to propose an alternative implementation mechanism for community-based land ownership rights in some of the northeastern States.

The  Scheme exclude some section of the society such as:

     ★ former and present holders of constitutional posts,

     ★ serving and retired employees of the Union government or State governments including those in public sector and regular employees of local bodies,

     ★ Class IV or Group D employees have been exempted from the exclusion,

     ★ pensioners who are getting RS 10,000 or more,

    ★  former and present heads of municipal corporations,

     ★ Professionals including doctors, engineers, lawyers etc.

                                                                                                   Source:- The Hindu

LAIRCM Self-Protection Suites

GS PAPER - 02 INTERNATIONAL RELATIONS - Bilateral, regional and global groupings and agreements involving India and/or affecting India's interests

Context:

     ★ The US State Department approved the sale of two 777 Large Aircraft Infrared Countermeasures (LAIRCM) Self-Protection Suites (SPS)  to India.

More about the news:

     ★ These systems will protect protect two Boeing-777 Head-of-State aircraft. This would bring the security of Air India One at par with that of Air Force One, the aircraft used by the American President.

     ★ LAIRCM is a programme meant to protect large aircraft from man-portable missiles. It increases crew-warning time, decreases false alarm rates and automatically counters advanced infrared missile systems.

     ★ In a 2016 document, the Defense Technical Information Centre of the US Defense Department explained that LAIRCM consists of missile warning sensors (MWS), a laser transmitter assembly, control interface unit (CIU) and processors to detect, track, jam and counter incoming infrared missiles. The number of sensors and transmitter assemblies per aircraft is determined by the size and signature of the aircraft.

     ★ The release said the proposed sale will improve India’s capability to deter regional threats, and will support the foreign policy and national security of the US by helping strengthen the US-Indian strategic relationship.

      

                                                                                                                                    Source:- Indian Express

Governing India’s many spaces [ Editorial / OPinion]

GS PAPER - 03 ENVIRONMENT - Conservation, environmental pollution and degradation, environmental impact assessment

Context:

     ★ The author has analyzed India’s performance on three global indices that is Ease of Doing Business (EDB), Human Development (HDI) and Environmental Performance (EPI).

     ★ Published by separate international bodies, these indices are used to rank the world’s countries according to their performance in the related sphere.

     ★ It is important to note that rankings by themselves do not reveal the level of attainment but they do convey how far a country is from the global frontier.

     ★ India has been the fastest growing economy in the world, however its rank on human development has remained unchanged and on environmental performance it has slipped close to the last place.

Ease of Doing Business (EDB):

     ★ The EDB, an indicator put out by the World Bank, is meant mainly as an index of the effect of government regulations on running a business. It is also meant to reflect the extent of property rights in a society.

     ★ Responses are sought from government officials, lawyers, business consultants, accountants and other professionals involved in providing advice on legal and regulatory compliance.

     ★ It is important to note that a country’s ranking is based on the extent to which government regulations facilitate the following:

          ★ starting a business,

          ★ obtaining construction permits,

          ★ getting an electricity connection,

          ★ registering property,

          ★ accessing credit,

          ★ protection of investors,

          ★ paying taxes,

          ★ trading across borders,

          ★ enforcement of contracts and

          ★ resolving insolvency.

     ★ India has improved its ranking in terms of the EDB index.

     ★ From a rank of 134 in 2014, India’s rank improved to 77 in 2018. As 190 countries were ranked in 2018, India was in the top 50%. The position is not spectacular but the improvement is, as said, noteworthy.

     ★ A country’s ranking is based on the extent to which government regulations facilitate the following: starting a business, obtaining construction permits, getting an electricity connection, registering property, accessing credit, protection of investors, paying taxes, trading across borders, enforcement of contracts and resolving insolvency.

     ★ However according to World Bank’s Chief Economist, the progress in EDB does not reflect reality and point outs several shortcomings.

Critical Argument:

     ★ Biggest problem with the EDB is that it measures the effect of government regulations alone and ease of doing business is dependent upon other factors too such as availability of “producer services” with electricity, water supply and waste management.

     ★ There is little reason to believe that this infrastructure has improved in India in the last five years. As a matter of fact, the Planning Commission used to release data on infrastructural investment, but we have had none since its demise.

     ★ EDB ranking for the country shows significant improvement since 2014 with little or no importance given to public policy for over 50 years such as lowered health and education expenditure as a share of national income.

    ★ Reports and surveys on the ease of doing business in India are studying only certain types of businesses large (number of employees or income)

Human Development Index (HDI):

     ★ The Human Development Index is the result of a rare India-Pakistan collaboration in the global discourse on public policy, having been devised by Amartya Sen and Mahbub ul Haq for the United Nations Development Programme.

    ★ The HDI is a combination of indicators of income, health and education in a country. Its conceptual basis has been critiqued.

    ★ India was ranked 130 in 2014, and has remained in the same place out of 185 countries in 2018.

    ★ HDI ranking has not improved despite it being the world’s fastest growing major economy in recent years.

Critique of Human Development Index:

     ★ First, it has been pointed out that the index combines incommensurate categories, as income, health and education are not substitutes.

     ★ Second, while it does go beyond purely economic measures of progress, in that it looks at the health and education achievements in a population, it can say little about the ‘quality’ of development.

     ★ As pointed out by Selim Jahan of the UNDP, data can “[tell] us only a part of the story about people’s lives. For instance, it is increasingly clear that it is not enough simply to count how many children are in school: we need also to know whether they are learning anything.”

    ★ Nevertheless, the HDI has now gained reasonable acceptance globally as indicative of the development strides a country has taken.

    ★ Despite income being a component of the index. What this reveals is that an economy can grow fast without much progress in human development.

     ★ Also, India’s HDI position in the bottom third of countries points to how much it needs to progress to earn the label ‘the world’s largest democracy’.

Environmental Performance Index (EPI):

     ★ The EPI is produced jointly by Yale and Columbia Universities in collaboration with the World Economic Forum.

     ★ The index ranks countries on 24 performance indicators across several ‘issue categories’, each of which fit under one of two overarching objectives, namely, environmental health and eco-system vitality.

     ★ The issue categories are:

            ★ air quality,

            ★ water and sanitation,

            ★ water resources,

            ★ agriculture,

            ★ forests,

            ★ fisheries,

            ★ biodiversity and habitat, and

            ★ climate and energy.

     ★ In 2018 India ranked 177 out of 180 countries, having slipped from an already very low rank of 155 in 2014.

     ★ The country is today among the worst performing on the environmental front and its ranking has worsened over the past five years.

     ★ Government has lowered environmental standards for instance Coastal Regulation Zone Notification of 2018 allows construction and tourism development on land, earlier considered inviolable due to its ecological value.

                                                                                                                                 Source:- The Hindu

Ujjwala Utsav

GS PAPER - 02 GOVERNANCE - Welfare schemes for vulnerable sections of the population by the Centre and States and the performance of these schemes

Context:

     ★ Ujjwala Utsav observed to celebrate the stellar role played by various stakeholders in making PMUY a success

     ★ The event was organised here under the aegis of Ministry of Petroleum &Natural Gas to encourage, motivate as well as felicitate all frontline field forcefor their outstanding contribution to PMUY.

     ★ The occasion also saw the launch of the PMUY anthem – Ujjwala Bharat Ujjwala.

           

Pradhan Mantri Ujjwala Yojana:      ★ Pradhan Mantri Ujjwala Yojana was launched by Hon’ble Prime Minister Shri Narendra Modi on May 1st, 2016      ★ Pradhan Mantri Ujjwala Yojana (PMUY) aims to safeguard the health of women & children by providing them with a clean cooking fuel – LPG, so that they don’t have to compromise their health in smoky kitchens or wander in unsafe areas collecting firewood. Eligible:      ★ Under the scheme, an adult woman member of a below poverty line family identified through the Socio-Economic Caste Census (SECC) is given a deposit-free LPG connection with financial assistance of Rs 1,600 per connection by the Centre. Identification of household:      ★ Eligible households will be identified in consultation with state governments and Union territories. The scheme is being implemented by the Ministry of Petroleum and Natural Gas. Objective:      ★ Empowering women and protecting their health.      ★ Reducing the serious health hazards associated with cooking based on fossil fuel.      ★ Reducing the number of deaths in India due to unclean cooking fuel.      ★ Preventing young children from significant number of acute respiratory illnesses caused due to indoor air pollution by burning the fossil fuel.

 

                                                                                                                        Source:- PIB

Seaplane Services

GS PAPER - 03 ECONOMY - Infrastructure: Energy, Ports, Roads, Airports, Railways etc.

Context:

     ★ Under the Regional Connectivity Scheme (RCS) UDAN version 3.0 of Ministry of Civil Aviation,

     ★ The routes connecting the following six water aerodrome sites have been awarded to start seaplane and helicopter services

           ★ Guwahati River Front

           ★ Nagarjuna Sagar

          ★ Sabarmati River Front

          ★ Shatrunjay Dam

          ★ Statue of Unity (Sardar Sarovar Dam)

          ★ Umrangso Reservoir

                                                                                              Source:- PIB

2nd phase of river information system between Farakka- Patna

GS PAPER - 03 ECONOMY - Infrastructure: Energy, Ports, Roads, Airports, Railways etc.

Context:

     ★ The Union Minister of Water resources, River Development and Ganga Rejuvenation, inaugurate Phase 2 of the River Information System on National Waterway-1 (River Ganga) between Farakka and Patna.

    ★ Also unveil new arrangement of Navigation Lock at Farakka that would enable breeding of Hilsa fish in River Ganga and help preserve the river ecosystem.

The River Information System (RIS) (Farakka -Patna):

     ★ It will enhance the swift electronic data transfer between mobile vessels and base stations on shore through advance and real-time exchange of information.

     ★ It is a form of vessel traffic management using next generation technology. It will help in crises management and enhanced inland navigation safety by preventing ship-to-ship collisions, ship – bridge collisions, groundings etc.

     ★ The service will immensely help in optimization of navigation and minimize collision risks in the waterway thus benefitting the users greatly. The services are being used in advanced waterways of Europe, China and U.S.A. The operationalization of this system in India is a landmark in itself.

     ★ Under phase II, five base stations – Manihari, Bhagalpur, Munger, Barh and Hatidah and one control station have been made at Patna.

     ★ IWAI (Inland Waterways Authority of India) is implementing the project in three phases on NW-1. Earlier, in 2016, the first phase of RIS – on Haldia- Farakka stretch was commissioned. Work on third, Patna-Varanasi stretch   is currently in progress.

                                                                                                                                          Source:- PIB

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