03 Apr 2021: UPSC Exam Comprehensive News Analysis

CNA 3rd April 2021:- Download PDF Here

TABLE OF CONTENTS

A. GS 1 Related
B. GS 2 Related
HEALTH
1. Disquiet over policy for rare diseases
2. Maternal deaths rose during pandemic: study
INTERNATIONAL RELATIONS
1. U.S., Iran agree to indirect nuclear talks
C. GS 3 Related
D. GS 4 Related
E. Editorials
HEALTH
1. A missing science pillar in the COVID response
ECONOMY
1. Prudence prevails
F. Prelims Facts
1. First farm-based solar power plant comes up in Rajasthan
G. Tidbits
1. Govt. asks PSU refiners to review Saudi oil deals
2. ‘India stands for revival of democracy in Myanmar’
H. UPSC Prelims Practice Questions
I. UPSC Mains Practice Questions

2. Maternal deaths rose during pandemic: study

Context:

According to a study, maternal deaths have increased during the COVID-19 pandemic.

Details:

  • The disruption caused by the COVID-19 pandemic has led to avoidable deaths of both mothers and babies.
  • COVID-19 impact on pregnancy outcomes was disproportionately high in poorer countries.
  • The failure of the health system to cope with the COVID-19 pandemic has resulted in an increase in maternal deaths and stillbirths.
    • There was a 28% increase in the odds of stillbirth.
    • The risk of mothers dying during pregnancy or childbirth increased by about one-third.
    • There was also a rise in maternal depression.

Way Forward:

  • Policymakers and healthcare leaders must urgently investigate robust strategies for preserving safe and respectful maternity care, given the ongoing global emergency.
  • Immediate action is required to avoid rolling back decades of investment in reducing mother and infant mortality in low-resource settings.
  • Given the fact that the pandemic resulted in reduced access to care, personnel for maternity services must not be redeployed for other critical and medical care during the pandemic.

Category: INTERNATIONAL RELATIONS

1. U.S., Iran agree to indirect nuclear talks

Context:

The U.S. and Iran said that they would begin negotiations through intermediaries to try to get both countries back into an accord limiting Iran’s nuclear programme.

Details:

  • The announcement marks the first major progress in efforts to return both countries to the 2015 accord.
  • The accord bound Iran to restrictions on its nuclear programmes in return for relief from the U.S. and international sanctions.
  • The development comes nearly three years after President Donald Trump pulled the U.S. out of the deal.

Read more on the issue of revival of Iran Nuclear Deal covered in 2nd March 2021 Comprehensive News Analysis.

Category: ECONOMY

1. Prudence prevails

Context

  • The Union government has decided to retain India’s inflation target at 4 per cent with a band of 2 per cent on either side for another five-year period, ending March 2026.

Inflation Targeting:

Read more about Inflation Targeting.

Background

  • India adopted a flexible inflation targeting framework as a formal legal mandate of the RBI in 2016.
  • The RBI Act, 1934, amended through the Finance Act of 2016, established a modern monetary policy framework with a clear objective of achieving price stability while keeping in mind the objective of growth.
    • One of the sections of the amended law requires that the inflation target, set in terms of the year-on-year change in the headline Consumer Price Index, is to be determined by the central government in consultation with the Reserve Bank of India, once every five years.
  • To control the price rise, the government in 2016 gave a mandate to the RBI to keep the retail inflation at 4 per cent with a margin of 2 per cent on either side for a five-year period ending March 31, 2021.

How does it work?

  • Central banks with inflation targeting regimes define their target in terms of
    • point target
    • point target with tolerance bands
    • A range.
  • Countries often start with a range, and after achieving a steady state of inflation, switch to a point target or a point target with a range.

What has India adopted?

  • India has adopted a point target with a range.
  • These have the advantage of being precise and giving a clear signal about the central bank’s objective.
    • They are also symmetric, which conveys the central bank’s intention of avoiding deflation as effectively as it would avoid inflation.
  • While a range provides some flexibility in the conduct of monetary policy, it also conveys that the central bank may have imprecise control over the inflation target.

Significance of Government’s move to retain inflation target at 4 plus/minus 2 per cent

  • In recent months, there has been a debate about revising the inflation target to allow the central bank greater leeway to cut interest rates and focus on growth in the pandemic-struck economy.
  • In addition to revising the target, many commentators had suggested modifying the inflation targeting framework. There have been calls to abandon it.
  • The Economic Survey argued for changing the inflation metric from headline inflation to core inflation, and thus excluding food and fuel prices which are transitory and mainly supply side factors that monetary policy cannot influence.

Despite pressures to alter the framework, the Central government announced its decision not to alter the framework.

  • Changing the inflation targeting framework may have sounded like an attractive proposition but it would have created considerable uncertainty over the stance of monetary policy.
  • It would have also indicated a lack of fidelity to the objective of maintaining price stability in the economy.
  • The inflation targeting that India has adopted gives enough flexibility to the RBI to focus on growth without losing sight of its inflation-control objective.
  • One of the features of the inflation-targeting framework is the “anchoring” of inflation expectations, any change that would have signalled greater tolerance by the interest rate-setting committee for higher levels of inflation, would have led to an increase in the volatility of prices, thereby destabilising inflationary expectations. These in turn would have a bearing on the long-term consumption and investment decisions taken by economic agents.

Conclusion

  • The move will certainly reassure investors and savers that inflation remains a central concern for all policymakers.

F. Prelims Facts

1. First farm-based solar power plant comes up in Rajasthan

What’s in News?

India’s first farm-based solar power plant under the Prime Minister’s Kisan Urja Suraksha Evum Utthan Mahabhiyan (KUSUM) scheme has come up in Jaipur.

  • The 1 MW project has been established on 3.50 acres of farmland.
  • It has a provision for the production of 17 lakh units of electricity every year.

KUSUM Scheme:

  • KUSUM stands for Kisan Urja Suraksha evam Utthaan Mahabhiyan.
  • KUSUM scheme aims at furthering the production of solar power in India and also gives the benefits of solar farming to farmers.
  • It is implemented by the New and Renewable Energy Ministry.

Read more on KUSUM Scheme.

G. Tidbits

1. Govt. asks PSU refiners to review Saudi oil deals

What’s in News?

Amid tensions with Saudi Arabia over oil production cuts, India has asked its state refiners to review contracts for buying crude oil from the West Asian nation and negotiate more favourable terms.

  • Traditionally, Saudi Arabia and other OPEC producers have been the mainstay suppliers of crude oil for India. But their terms have often been unfavourable.
  • Therefore, the government is now pressing for diversification of the supply base.
    • Keen to break the producers’ cartel dictating pricing and contractual terms, the government has told PSUs to look for supplies from outside the region and use collective bargaining power to get favourable terms.
  • Also, India is looking at buying from the spot market rather than through contracts as it would ensure that it can take advantage of any fall in prices on any day and book quantities.

Note:

  • India imports 85% of its oil needs and is often vulnerable to global supply and price shocks.
  • West Asia accounts for 60% of oil bought by India. Latin America and Africa are the other big supplier blocks.

2. ‘India stands for revival of democracy in Myanmar’

What’s in News?

India has said that it stands for the revival of democracy in Myanmar.

Background:

  • The military has deposed the democratically elected leadership of Myanmar and has taken over the administration.

Read more on this topic covered in 2nd February 2021 Comprehensive News Analysis and 3rd February 2021 Comprehensive News Analysis.

Details:

  • India’s External Affairs Ministry spokesperson said that India has urged the release of political prisoners and supported any attempts at resolving the current situation, including through the efforts of ASEAN.
  • India was among the first countries to express concern over the current situation in Myanmar.

H. UPSC Prelims Practice Questions

Q1. Consider the following statements with respect to PM KUSUM Scheme:
  1. The scheme was launched by the Ministry of Agriculture and Farmers’ Welfare.
  2. Under the scheme, the farmers have the option to sell additional power to the grid through solar power projects set up on their barren lands.
  3. The first farm based solar power plant under the scheme was set up in Haryana.

Which of the given statement/s is/are correct?

  1. 1 and 3 only
  2. 2 only
  3. 1 only
  4. 1 and 2 only
CHECK ANSWERS:-

Answer: b

Explanation:

  • Pradhan Mantri Kisan Urja Suraksha evum Utthan Mahabhiyan (PM KUSUM) Scheme is a farmer-oriented scheme involving decentralised solar power production.
  • Under the scheme, the farmers have the option to sell additional power to the grid through solar power projects set up on their barren lands.
  • The scheme was launched by the Ministry of New and Renewable Energy.
  • The first farm based solar power plant under the scheme has been set up in Jaipur, Rajasthan.
Q2. Consider the following statements with respect to Rabha Tribe:
  1. Hamja is a folk dance performed by the Rabha tribes.
  2. Baikho Dera is the main festival of the Rabhas.
  3. Rabha people are found in India, Bhutan, Bangladesh and Nepal.

Which of the given statement/s is/are correct?

  1. 1 only
  2. 2 and 3 only
  3. 1 and 3 only
  4. 1, 2 and 3
CHECK ANSWERS:-

Answer: d

Explanation:

  • Rabha is an indigenous Tibeto-Burman community.
  • They are found in Assam, Meghalaya, West Bengal in India, Bhutan, Bangladesh and Nepal.
  • Hamja is a folk dance performed by the tribes.
  • The Hamja Dance is about paddy cultivation.
  • Baikho Dera is the main festival of Rabhas.
Q3. Consider the following statements:
  1. The United Nations has declared 2023 as the International Year of Millets.
  2. India, Nigeria and China are the largest producers of millets in the world.
  3. Millets are photo-insensitive and resilient to climate change.

Which of the given statement/s is/are INCORRECT?

  1. 1 only
  2. 2 and 3 only
  3. 3 only
  4. None of the above
CHECK ANSWERS:-

Answer: d

Explanation:

  • India, Nigeria and China are the largest producers of millets in the world, accounting for more than 55% of the global production.
  • In the 160th session of the Food and Agriculture Organization (FAO) Council held in Rome in 2018, India’s proposal to observe an International Year of Millets in 2023 was approved.
  • The United Nations has declared 2023 as the International Year of Millets.
  • Millets are photo-insensitive & resilient to climate change.
  • They are hardy, resilient crops that have a low carbon and water footprint, can withstand high temperatures and grow on poor soils with little or no external inputs.
Q4. Consider the following statements with respect to the Model Code of Conduct (MCC):
  1. MCC comes into force from the date of election until the date that the results are out.
  2. They are a set of guidelines issued by the Election Commission of India.
  3. MCC does not have a statutory backing.

Which of the given statement/s is/are INCORRECT?

  1. 3 only
  2. 1 and 3 only
  3. 1 only
  4. None of the above
CHECK ANSWERS:-

Answer: c

Explanation:

  • Model code of Conduct is a set of guidelines issued by the Election Commission of India for conduct of political parties and candidates during elections mainly with respect to speeches, polling day, polling booths, election manifestos, processions and general conduct.
  • The MCC comes into force from the date the election schedule is announced until the date that results are out.
  • It does not have statutory backing. This means, if someone breaches the MCC, a case cannot be filed under any clause of the code itself.

I. UPSC Mains Practice Questions

  1. India’s fight against the resurgence of the coronavirus is a challenge requiring strengthened data and better science. Discuss (10 Marks, 150 Words) [GS-2, Health]
  2. Has inflation targeting helped India keep inflation in check and maintain price stability? Critically evaluate. (10 Marks, 150 Words) [GS-3, Economy]

Read the previous CNA here.

CNA 3rd April 2021:- Download PDF Here

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