National Current Affairs – UPSC/KAS Exams- 1st February 2020

Economic Survey Highlights

Topic: Economy

In News: Finance Minister Nirmala Sitharaman tabled the Economic Survey of India 2020 in the Parliament.

Key Highlights:

Thalis more affordable for Indians now:

• The Economic Survey said that affordability of Thalis vis-à-vis a day’s pay of a worker has improved over time, indicating improved welfare of the common person. Affordability of vegetarian Thalis improved 29 per cent from 2006-07 to 2019-20 while that for non-vegetarian Thalis by 18 per cent.

More new firms created:

• New firm creation in India has increased since 2014. There has been 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.

47.33 Lakh Houses Completed Per Year in 2018-19 Under PMAY- Gramin:

• The two Schemes, Pradhan Mantri Awaas Yojana- Gramin (PMAY-G) and Pradhan Mantri Awaas Yojana- Urban (PMAY-U), seek to achieve the target of housing for all by 2022. Under PMAY-G, the number of houses completed in a year increased by more than four times, from 11.95 lakh in 2014-15 to 47.33 lakh in 2018-19, states the Survey.

Infrastructure Investment of Rs.102 Lakh Crore in FY 2020-2025:

• The Survey said that to achieve GDP of USD 5 trillion by 2024 – 2025, India needs to spend about USD 1.4 trillion (Rs.100 lakh crore) over these years on infrastructure so that lack of infrastructure does not become a constraint to the growth of Indian economy.
• NIP is expected to enable well prepared infrastructure projects that will create jobs, improve ease of living and provide equitable access for infrastructure for all thereby making growth more inclusive.
  • Per Cent Growth Registered in Livestock Sector During Last Five Years:
• The Survey said that Livestock income has become an important secondary source of income for millions of rural families and has assumed an important role in achieving the goal of doubling farmers’ income. Livestock sector has been growing at a Compound Annual Growth Rate (CAGR) of 9 per cent during last five years.

Greening India:

• Despite ongoing developmental efforts, forest and tree cover are increasing considerably.
• The forest and tree cover have reached 80.73 million hectares which is 24.56 per cent of the geographical area of the country.
• The States/UTs showing gain in forest cover are Karnataka (1,025 sq. km), Andhra Pradesh (990 sq. km) and Jammu & Kashmir (371 sq. km) whereas those showing loss in forest cover include Manipur, Meghalaya, Arunachal Pradesh and Mizoram. In the Forest Report 2019, the total carbon stock in forest is estimated as 7,124.6 million tons, showing an increase of 42.6 million tons as compared to the last assessment in 2017.

Ayushman Bharat and Health:

• Ayushman Bharat, the world’s biggest health care Scheme to improve access to health and delivery of health services at massive scale, has set up 28,005 Health & Wellness Centres as on 14th January 2020.
• To promote preventive healthcare, one and half lakh Ayushman Bharat- Health and Wellness Centres are proposed to be set up by 2022.
• As per the latest National Health Accounts 2016-17, the out of pocket expenditure (OoPE) on health as a percentage of total health expenditure declined from 64.2 per cent in 2013-14 to 58.7 per cent in 2016-17.

 2.6 crore jobs created in Rural and Urban Areas Between 2011-12 and 2017-18:

• Along with efforts for generating additional employment, special focus has been on improving quality of jobs and formalisation of the economy.
• The share of regular wage/salaried employees has increased by 5 percentage points from 18 per cent in 2011-12 to 23 per cent in 2017-18. In absolute terms, there was 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.

India has become Second Largest Emerging Green Bond Market after China:

• Survey observed that India has the Second largest Emerging Green Bond Market after China.
• The SBI entered the market with an US$650 million Certified Climate Bond. India also joined International Platform on Sustainable Finance (IPSF) in 2019 to scale up the environmentally sustainable investments.

All Urban Areas of 35 States/UTs Declared Open Defecation Free:

• Swachh Bharat Mission (Urban) was launched in 2014 with twin objectives of ensuring 100 percent scientific solid waste management and making urban India ODF to achieve total environmental improvement.
• All Urban areas of 35 States/UTs have become ODF and percentage of waste processing rose from around 18 percent to 60 percent.

Services Sector Sees 33 Per Cent Jump in Gross FDI

• Growing in its significance, the Services Sector accounted for about 55percent of the economy and Gross Value Added (GVA) growth, two-thirds of total FDI inflows into India and about 38percent of the total exports.
• The sector’s share now exceeds 50 per cent of the Gross State Value Added in 15 out of the 33 states and UTs.

Improvement in Space Sector:

• India’s space programme has grown exponentially since its modest beginnings five decades ago, moving from simple mapping services to many more uses currently.
• Even though India’s spending is less compared to others, ISRO has launched around 5-7 satellites per year in recent years with almost no failures.

Rationalisation of Government Intervention to Boost Economic Freedom & Wealth Creation required:

• There is a case for Government intervention when markets do not function properly, excessive intervention especially when the market can do the job of enhancing citizens welfare perfectly well, stifles economic freedom and creates ‘deadweight loss’ which is the loss created by the wasted chance of creating a consumer and producer surplus and reduces wealth creation by not allowing efficient allocation of entrepreneurial resources and energy to productive activities thereby promoting economic dynamism.

Other Highlights of Economic Survey 2019-20:

• GDP growth pegged at 6-6.5 per cent in fiscal year starting April 1, up from 5 per cent in current fiscal
• Fiscal deficit target for current fiscal may need to be relaxed to revive growth
• Uptick in growth projected in second half of current fiscal based on 10 factors including higher FDI flows, build-up of demand pressure, positive GST revenue growth
• Survey asks government to deliver expeditiously on reforms to revive growth.
• Ethical wealth creation key to India becoming USD 5 trillion economy by 2025
• Share of formal employment increased from 17.9 per cent in 2011 -12 to 22.8 per cent in 2017-18 reflecting formalisation in the economy
• Theme of Survey is wealth creation, promotion of pro-business policies, strengthening of trust in the economy
• To achieve GDP of USD 5 trillion by 2024-25, India needs to spend about USD 1.4 trillion over these years on infrastructure
• 62 crore new jobs created in rural, urban areas between 2011-12 and 2017-18 among regular wage/salaried employees
• There is increase in regular employment of women in 2017-18 over 2011-12
• Excessive government intervention in markets, especially when the market can do the job of enhancing citizens welfare perfectly well, stifles economic freedom
• Debt waivers disrupt the credit culture, reduces formal credit to same farmers
• Suggests government to systematically examine areas where it needlessly intervenes and undermines markets
• Calls for improving governance in public sector banks, more disclosures to build trust
• Calls for measures to make it easier to start new business, register property, pay taxes, enforce contracts
• Easing of crude prices lowers current account deficit; imports contract more sharply than exports in first half of current fiscal
• Declining inflation from 3.2 per cent in April 2019 to 2.6 per cent in December 2019, reflecting weakening demand pressure in the economy
• GST collections grew by 4.1 per cent for the centre during April-November 2019.

Source: Financial Express

International Platform on Sustainable Finance

Topic: Environment and Ecology

In News: IPSF was mentioned in the Economic Survey 2020.

More on the Topic:

• The International Platform on Sustainable Finance (IPSF) was launched on 18 October 2019 by public authorities from Argentina, Canada, Chile, China, India, Kenya, Morocco and the European Union, representing almost half of the world’s greenhouse gas emissions.
• It is a forum for public authorities in charge of developing environmentally sustainable finance policies and initiatives (ministries of finance/ economy, central banks, and supervisory and regulatory authorities).

Objectives of the IPSF:

• Exchange and disseminate information to promote best practices in environmentally sustainable finance;
• Compare the different initiatives and identify barriers and opportunities to help scale up environmentally
• Sustainable finance internationally; While respecting national and regional contexts, enhance international coordination where appropriate on environmentally sustainable finance issues. Where appropriate, some willing members could strive to align initiatives and approaches
• The ultimate objective is to:
• Scale Up The Mobilisation of private capital towards environmentally sustainable finance at global level.
• Promote integrated markets for environmentally sustainable finance.

Source: Hindu

Sovereign Gold Bond Scheme

Topic: Government Schemes

In News: The Government of India in consultation with the Reserve Bank of India has decided to allow discount to those investors who apply online and the payment is made through digital mode.

More on the Topic:

• The government of India launched a Sovereign Gold Scheme to provide an alternate option to owning gold.
• This scheme intends to reduce the demand for physical gold, thereby keeping a tab on gold imports and utilising resources effectively.
• With the Reserve Bank of India issuing these gold bonds, it brings in transparency and trust, providing an avenue wherein people can own gold without having to worry about its storage or safety.

How does Sovereign Gold Bond Scheme operate?

• Under the Sovereign Gold Bond Scheme, the Reserve Bank of India will issue the bonds on behalf of the Government of India.
• The bonds will be sold at post offices and banks and issued in denomination of gram.
• They will issue these bonds on payment of money. Later on, the bonds will be connected to the price of gold.
• From one person, the Sovereign Gold Bond Scheme would accept a minimum investment of 2 gm gold and a maximum investment of 500 gm in a single fiscal year.

Why the scheme was introduced?

• The gold demand rises in times of uncertainty or high inflation.
• Gold demand is mostly met through imports
• Years of high imports are ones of high current account deficits which, in turn, have weakened the rupee.
• It is to reduce huge import bill that, in November 2015, the government tried to introduce gold bonds.

Source: Hindu

Indigenous Bio-Jet Fuel

Topic: Science and Technology

In News: Both engines of AN-32 aircraft of the Indian Air Force were powered by the bio-jet indigenous fuel for the first time.

More on the topic:

• Bio-jet fuel is produced from non-edible ‘Tree Borne Oils’, grown and procured from the tribal areas of Chhattisgarh state. IAF’s efforts would assist in reducing carbon footprint and India’s dependence on crude imports.
• The technology of the fuel was produced by CSIR-IIP in 2013. However, it couldn’t be used for commercial purposes due to lack of aviation test facilities.
• Indian Air force in 2018, sponsored the project and channelized material resources and human resources to complete fuel testing.

Source: Hindu

Fundamental Rights and OCI Cardholders

Topic: Polity and Governance

In News: The Union government has informed the Delhi High Court that Overseas Citizen of India (OCI) cardholders do not enjoy fundamental rights guaranteed by the Constitution, including the right to freedom of speech and expression.

More on the Topic:

• The government’s response came in a plea seeking the right to seek information under the RTI Act.
• According to the government, OCI cardholders have merely been granted statutory rights under the Citizenship Act, 1955.
• Centre held that the right to freedom of speech and expression is a statutory right and not a fundamental or a constitutional right for the OCI cardholders.
• The Central Government grants limited rights through the Citizenship Act (Conferment of rights on overseas citizens of India). Therefore, it depends on the policies of the government what rights are granted to the OCIs.
• Centre’s response goes against earlier Delhi High Court ruling in 2018, where it held that OCI cardholders have the right to enjoy the fundamental rights of equality and freedom of speech and expression like other Indian citizens.
• In 2018, the Delhi High Court had said that an overseas citizen can exercise fundamental rights guaranteed to “natural persons” under the constitution.
• The Supreme Court has also located the right to information in both Articles 19(1)(a) of the Constitution, that is granted to citizens, and Article 21 – the right to life, which is guaranteed to all natural persons.

Source: Indian Express

Google- grant to promote news literacy among Indians

Topic: Science and Technology

In News: In an effort to counter fake news and misinformation in India, Google News Initiative (GNI) has announced a $1 million grant for Internews, a news literacy organisation.

More on the Topic:

• According to Google, the grant will work towards building a strong network of senior reporters and journalists, who will counteract fake news in India.
• Google’s initiative will focus on delivering news literacy, especially in the non-metro cities. Under the programme, Internews will put together a team of 250 journalists, fact-checkers, academicians, and NGO workers, who will be trained by global and Indian experts in a curriculum adapted to local needs and available in seven Indian languages.
• The local leaders will then roll out the training module for new Internet users in non-metro cities in the country, enabling them to better navigate the Internet and assess the information they find.

Source: Hindu