CNA 6th April 2021:- Download PDF Here
TABLE OF CONTENTS
A. GS 1 Related B. GS 2 Related INTERNATIONAL RELATIONS 1. Putin signs law that could keep him in office till 2036 POLITY AND GOVERNANCE 1. Govt. amends nine laws via ordinance C. GS 3 Related ECONOMY 1. Flexible inflation targeting working well, says FinMin 2. Govt. amends IBC for MSME resolution D. GS 4 Related E. Editorials INTERNATIONAL RELATIONS 1. U.S. and China need each other POLITY AND GOVERNANCE 1. Free and unhindered justice SOCIAL ISSUES 1. The pillars of an equitable post-COVID India F. Prelims Facts 1. Manufacturing PMI dips to 7-month low G. Tidbits 1. ‘Less-industrialised States lead power demand recovery’ 2. ‘India delayed second wave, can contain economic impact’ 3. Persistent mindlessness H. UPSC Prelims Practice Questions I. UPSC Mains Practice Questions
A. GS 1 Related
Nothing here for today!!!
B. GS 2 Related
Category: INTERNATIONAL RELATIONS
1. Putin signs law that could keep him in office till 2036
Context:
Russian President Vladimir Putin signed a law allowing him to potentially hold onto power until 2036.
Background:
- New constitutional amendments were proposed to Russia’s Constitution.
- A national referendum had asked voters to decide whether to approve 206 constitutional amendments.
- In the referendum, both turnout and popular support for the amendments were higher than when Russians voted to adopt the current Constitution itself in 1993.
- Nearly 78% of voters approved the constitutional amendments during the balloting.
This issue has been covered in the 3rd July 2020 Comprehensive News Analysis.
Amendments:
- The amendments strengthen presidential and parliamentary powers.
- The amendments would allow Putin to run for two more six-year terms, in 2024 and 2030.
- The Russian Constitution bars more than two consecutive presidential terms.
- The new Constitution doesn’t change the two-term limit in theory, but in practice, it resets Mr Putin’s terms so that it will be the first election under the new Constitution for him, to be held in 2024.
- The amendments also place strict limitations on Russians who hold foreign citizenship or residency from serving public office. It blocks any individual who has ever held foreign residency or citizenship from ever running for President.
- The constitutional amendments also emphasised the primacy of Russian law over international norms, outlawed same-sex marriages and mentioned “a belief in God” as a core value.
Details:
- This move formalises constitutional changes endorsed in a vote in 2020.
- Following the vote, Russian lawmakers have methodically modified the national legislation, approving the relevant laws.
- Putin has argued that resetting the term count was necessary to keep his lieutenants focused on their work instead of “darting their eyes in search for successors.”
Category: POLITY AND GOVERNANCE
1. Govt. amends nine laws via ordinance
Context:
The government has amended nine laws via ordinance.
Details:
- Through the promulgation of the Tribunal Reforms (Rationalisation and Conditions of Service) Ordinance 2021, the Centre has replaced the existing appellate authorities and vested those powers in the High Courts.
- The tenures of chairpersons and members of tribunals were also amended.
- The tenure of a chairperson has been fixed for a term of four years or till the age of 70, whichever is earlier.
Which are the nine laws?
These laws are Cinematograph Act; Copyright Act; Customs Act; Patents Act; Airports Authority of India Act; Trade Marks Act; Geographical Indications of Goods (Registration and Protection) Act; Protection of Plant Varieties and Farmers Rights Act and Control of National Highways (Land and Traffic) Act.
Read more on Ordinance Making Power of President & Governor.
C. GS 3 Related
1. Flexible inflation targeting working well, says FinMin
Context:
The Finance Ministry recently announced that the inflation target for the five years between April 2021 and March 2026 will remain unchanged at 4%, with an upper tolerance level of 6% and a lower tolerance level of 2%.
Details:
- Explaining its decision to stick to the same ‘tried and tested’ model, the Finance Ministry said that the flexible inflation targeting monetary policy regime has been successful in leashing the inflation rate within a range along with providing a favourable environment for economic growth.
- The flexible inflation targeting led to a decline in price fluctuations, halved the volatility of core inflation, and moderated the median inflation expectations of urban households over a one-year ahead horizon, it said.
- It was highlighted that the volatility in the interest rate and exchange rate also decreased during 2017-20.
Read more on this issue covered in 4th April 2021 Comprehensive News Analysis.
2. Govt. amends IBC for MSME resolution
Context:
An ordinance was promulgated to amend the Insolvency and Bankruptcy Code (IBC).
Details:
- The government has amended the insolvency law to provide for a pre-packaged resolution process for micro, small and medium enterprises.
- The amendment allows the Centre to notify the minimum amount of default value, not more than Rs 1 crore, for pre-packaged insolvency resolution process.
- As per the ordinance, it is considered expedient to provide an alternative resolution process to ensure quicker and value-maximising outcomes for all stakeholders, in a manner least disruptive to the continuity of their businesses and which preserves jobs.
- The Ordinance said MSMEs are critical for India’s economy as they contribute significantly to its gross domestic product and provide employment to a sizeable population, and it is considered necessary to urgently address the specific requirements of MSMEs relating to the resolution of their insolvency.
Note:
- The government had suspended fresh insolvency proceedings for six months from March 25, 2020, when a nationwide lockdown was imposed to curb the spread of coronavirus infections.
- The suspension was extended till March 24, 2021.
D. GS 4 Related
Nothing here for today!!!
E. Editorials
Category: INTERNATIONAL RELATIONS
1. U.S. and China need each other
Context:
- U.S.-China Foreign Ministers’ meeting in March at Alaska.
Background:
Increasing clout of China:
- China will surpass the U.S. as the world’s largest economy, has established a worldwide network of economic ties and set up multilateral and financial institutions like the Shanghai Cooperation Organisation, New Development Bank and Asian Infrastructure Investment Bank to compete with the West-dominated International Monetary Fund and World Bank.
- It has been successful in countering American increases in military funding by expanding its own military power.
- China has extended its influence globally. Some of the U.S.’s formal allies have re-shaped their foreign and economic relations with China deepening their own bilateral relationship with China.
Confrontation and competition between U.S. and China:
- The rising U.S.-China tension may be attributed to China’s rise that is transforming power settings and the U.S.’s attempts to constrict China before it becomes a peer competitor.
- Former U.S. President Donald Trump had accused China of unfair trade practices and pursued a dual policy of offering deals and threatening sanctions.
- The current U.S. President, Joe Biden has censured China for human rights abuses in Hong Kong and Xinjiang, aggression in the South and East China Seas, intimidation of Taiwan, intellectual property theft, currency manipulation, and cyberattacks.
- The U.S. and Europe have imposed sanctions against China and others.
Details:
- The beginning of the Alaska meeting between the foreign ministers was marked by a war of words between the representatives of the two countries.
- The U.S. Secretary of State, Antony Blinken, blamed China for attacks on global values; posing threats to a rules-based order that maintains global stability and economic coercion against U.S. allies.
- China countered by strongly opposing U.S.’s interference in China’s internal affairs, and asked the U.S. to introspect on its own track record of the poor treatment of minorities, and criticised U.S. policies seeking military and financial hegemony.
Interdependency:
- Confrontation and competition between the U.S. and China will dominate this century.
- Despite the constant war of words between the U.S. and China, interdependence between the two superpowers makes the war of words confined to rhetoric.
Economic interdependency:
- Both countries need each other for economic growth, supply chains, jobs, services, investments and market access.
Strategic dependency:
- Despite the confrontation and competition between the two countries, the Americans require the Chinese to work together on issues like climate change, COVID-19, Asia-Pacific Economic Cooperation and G-20, health, cyber-security, the Iran nuclear issue, Afghanistan, Korea and Myanmar.
Category: POLITY AND GOVERNANCE
1. Free and unhindered justice
Context:
- The article argues for the continuation of the virtual hearing in the Supreme Court.
Background:
Virtual hearing during the pandemic:
- With the pandemic necessitating social distancing and the need to keep access to the judiciary open, the Supreme Court had allowed for virtual hearings.
Location of Supreme Court:
- Geographical access to the Supreme Court has been flagged as a concern even during the constituent assembly debates. However, the Drafting Committee was of the view that the Court must have a specified place of sitting to ensure that the litigants know where to go for an appeal.
- The framers of the Constitution also agreed that the volume of litigation from different parts of the country may require the Supreme Court to increase its reach and hold court elsewhere. Accordingly, in recognition of the same, the Constitution empowered the Chief Justice to hold sittings of the Supreme Court through Circuit Benches in places other than Delhi as well.
- However, despite an increasing caseload and repeated pleas by litigants and governments, successive Chief Justices have refused to invoke this constitutional power.
- More than one Law Commission and Parliamentary Committee have recommended Circuit Benches of the Supreme Court to be set up around the country.
Concerns associated with the Supreme Court assembling exclusively in Delhi:
Limited access to Supreme Court:
- In India, given the unified, single-pyramidal structure of the judicial system, all types of cases can potentially make their way to the Supreme Court, irrespective of the place or forum of the original institution.
- The right to fair and equal access to the Supreme Court for all citizens of India is curtailed by the Supreme Court assembling exclusively in Delhi.
- Several studies have pointed out the fact that a disproportionately high number of cases filed in the Supreme Court originated in High Courts closer to Delhi pointing out to geographical constraints posed by the location of the Supreme Court.
Cost of access:
- Geographical constraints have also meant that appearing before the Supreme Court has inescapably become the domain of a select few lawyers in and around Delhi.
- Such implied exclusivity consequently translates into steep and often prohibitive monetary costs for litigants.
- The litigants are forced to choose from what the Bar in Delhi offers, both in terms of quality and costs.
Significance of virtual hearing:
- The virtual hearing provision opened new vistas for litigants and lawyers across India to approach, through technology, the country’s highest court with relative ease. Access to the Supreme Court has been made easier with virtual hearings.
- The virtual hearings provision has helped open up avenues for advocates from all over India.
- Litigants now have the option to engage a local lawyer of their own choice and convenience, including the same lawyer who argued their case before the lower court.
Conclusion:
- There have been demands for a return to physical hearings by the Bar in Delhi even as there have been calls for virtual access to the Supreme Court to continue.
- Although virtual hearings may not be the perfect alternative, the imperfections associated with virtual hearings must be preferred over denial of the right to access justice itself. It is very important to acknowledge the significance of fair and equal access to the Supreme Court for all citizens of India.
1. The pillars of an equitable post-COVID India
Context:
- Impact of the pandemic on the existing inequalities in India.
Details:
Economic shock of the pandemic:
- The economic shock due to the pandemic has been much more severe for India for two reasons. First, pre-COVID-19, the economy was already slowing down, compounding existing problems of unemployment, low incomes, rural distress, malnutrition, and widespread inequality. Second, India’s large informal sector is particularly vulnerable.
Impact of the pandemic on economic inequality:
- India has been witnessing growing inequalities and the COVID-19 pandemic has only accelerated the trend.
- The share of wages declined as compared to that of profits implying the increasing profits being cornered by the investors as compared to wages being earned by the workers.
- The big companies and a large part of the corporate sector were able to manage the pandemic. The quarterly net profit of the BSE200 companies reached a record high of Rs. 1.67 trillion in the third quarter of FY21 and was up by 57% year-on-year.
- The informal sector and workers have suffered a lot with the loss of incomes and employment in the last year.
- Women lost more jobs and many are out of the workforce. Inequalities have increased in the health care and education sectors too.
- The economic recovery has been more k-shaped with rising inequalities.
- Many economic experts and reports have pointed out the uneven impact of the pandemic.
- International organisations like the World Bank, the International Monetary Fund and the International Labour Organization have warned about rising inequalities in several countries including India due to the pandemic.
- The Pew Research Report shows that India’s middle class may have shrunk by a third, while the number of poor people earning less than Rs. 150 per day more than doubled due to the novel coronavirus pandemic.
Need to address the issue of inequality:
- Reduction in inequalities is important for its own sake and for improving demand which can raise private investment, consumption and exports for higher and sustainable economic growth.
- In the post-COVID-19 world, addressing inequality is important for higher and sustainable economic growth and the well-being of the population.
Way forward:
- The author suggests the following approach for reducing inequalities.
Employment and wages:
- The creation of quality and well-paying employment is central to the inclusive growth approach.
- This would necessitate the need to improve the investment rate in the economy.
- The investment rate declined from 39% in 2011-12 to 31.7% in 2018-19.
- Investment in infrastructure including construction can create employment. The central government’s move to focus on capital expenditure for infrastructure in the recent budget is a step in the right direction.
- The main challenges with respect to employment generation which would have to be addressed include the following:
- Creating productive jobs for seven to eight million per year
- Correcting the mismatch between demand and supply of labour – only 2.3% of India’s workforce has formal skill training
- Structural change challenge – While the service sector continues to expand and contribute an ever-increasing share in the GDP matrix, ideally, manufacturing should be the engine of growth. Labour-intensive exports need to be promoted
- Need to balance the objective of promoting growth of micro, small & medium enterprises and informal sectors by improving ease of doing business even while upholding the rights of workers
- Need to be well prepared for automation and technology revolution
- Need to ensure social security and decent working conditions for all
- Work towards raising real wages of rural and urban workers and guaranteeing minimum wages
Focussing on human development:
- The state should focus on creating equality of opportunity by improving human development through increased public expenditure on health and education.
- Education and health achievements are essential for reducing inequality of opportunities.
- India should move towards universal health care and spend 2%-3% of GDP on health.
- The main concerns associated with the health and education sector are as follows:
- Public expenditure on health is only 1.5% of GDP.
- In education, there are islands of excellence that can compete internationally even as a vast majority of masses of children are churned out with poor learning achievement. The pandemic also brought to light the digital gap in education.
Social security net:
- An important intervention in addressing the inequalities would involve providing a quasi-universal basic income and other safety nets to the most vulnerable sections of the population.
- This could include providing a minimum income for the poor and the vulnerable based on cash transfers; expanding the number of days provided under the Mahatma Gandhi National Rural Employment Guarantee Act and a national employment guarantee scheme for urban areas.
- Schemes and interventions in the agri sector aimed at doubling the income of the farmers would play a critical role in reducing inequalities.
- These measures would help provide income support to the needy.
Addressing the financial aspects:
- Enhancing tax and non-tax revenues of the government is needed to spend on the above-discussed priorities.
- The tax/GDP ratio has to be raised, with a wider tax base. Richer sections have to pay more taxes.
- The inequalities between the Centre and States in finances should be reduced. State budgets must be strengthened to improve capital expenditures on physical infrastructure and spending on health, education and social safety nets.
Non-economic factors:
- Unequal distribution of development is rooted in the inequalities of political, social and economic power.
- Apart from economic factors, non-economic factors such as deepening democracy and decentralisation can help in reducing inequalities.
F. Prelims Facts
1. Manufacturing PMI dips to 7-month low
What’s in News?
Nikkei Manufacturing Purchasing Managers’ Index declined to a seven-month low of 55.4.
- It was indicated that demand growth was constrained by the escalation of the COVID-19 pandemic, while the rise in input buying was curtailed by an intensification of cost pressures.
- Although India’s economy was predicted to grow at a faster pace in FY 2021-22 than previously thought a significant majority of economists said a surge in coronavirus cases was the biggest risk to the outlook.
Purchasing Managers’ Index:
- Nikkei Manufacturing Purchasing Managers’ Index is compiled by IHS Markit.
- The Purchasing Managers’ Index (PMI) is an index of the prevailing direction of economic trends in the manufacturing sector.
- It consists of a diffusion index that summarizes whether market conditions, as viewed by purchasing managers, are expanding, staying the same, or contracting.
Note:
- The headline PMI is a number from 0 to 100.
- A PMI above 50 represents an expansion when compared with the previous month.
- A PMI reading under 50 represents a contraction, and a reading at 50 indicates no change.
Read more on Purchasing Manager’s Index (PMI).
G. Tidbits
1. ‘Less-industrialised States lead power demand recovery’
What’s in News?
As per the analysis of government data, India’s less industrialised States have led a recovery in electricity demand.
- Power use in less industrialised States such as Bihar and Chhattisgarh in the East, and Uttar Pradesh and Punjab in the North, grew at more than 10% each compared with the previous year, both for the quarter and the six months ending on March 31, 2021.
- All these States which have high agricultural and residential power consumption, consumed more electricity than in the previous year (2020-21).
- However, India’s annual power demand fell for the first time in at least 35 years in 2020-21.
Why did the power demand fall?
- Industries and offices account for half the country’s annual electricity consumption. More industrialised States such as Maharashtra, Tamil Nadu and Gujarat witnessed a decline in annual electricity use.
- The imposition of COVID-19 lockdowns resulted in a fall in electricity consumption for six straight months through August.
- But consumption has since risen for seven consecutive months, with usage in March 2021 rising at the fastest pace in 11 years.
2. ‘India delayed second wave, can contain economic impact’
What’s in News?
While India is in the middle of the second wave of COVID-19 infections, the Finance Ministry stressed that the country had been able to delay the onset of the second wave and was well armed to cope with downside risks to the economy.
- The gap between the first peak to start of the second wave has been 151 days in India, while it was much lower in other countries.
- India is emphasising a five-fold strategy to curb the tide of new cases:
- Exponential increase in testing
- Effective isolation and contact tracing of those infected
- Reinvigoration of public and private healthcare resources
- Ensuring COVID-appropriate behaviour
- Targeted approach to vaccination in districts reporting large numbers
- Over 20 paramilitary personnel were killed in an encounter with Maoists in the Tarrem area near Chhattisgarh’s Sukma district.
- The encounter has raised the number of security forces killed in Bastar to more than 175 since the killing of 76 CRPF personnel in the Chintalnar attack in April 2010.
- Naxalism related violence has claimed more than 10,000 lives since 2000 alone, according to the South Asia Terrorism Portal.
- The Tarrem attacks indicate that the weakened Maoists remain a strong military threat despite facing losses to its cadre and leadership across central and east India.
H. UPSC Prelims Practice Questions
Q1. Which of the following ideal/s in the Preamble to the Indian Constitution has/have been borrowed from the Russian Constitution?
- Justice
- Liberty
- Equality
- Fraternity
Choose the correct option:
- 1 only
- 2 and 3 only
- 1, 3 and 4 only
- 1 and 3 only
CHECK ANSWERS:-
Answer: a
Explanation:
- “Liberty, Equality and Fraternity” as an ideal has been borrowed from the French Revolution to the Indian Constitution.
- The ideal “justice” in the Preamble to the Indian Constitution has been borrowed from the Russian Constitution.
Q2. Consider the following statements with respect to Bogibeel bridge:
- The Bogibeel project was a part of the 1985 Assam Accord.
- It is a combined road and rail bridge built over River Barak in Assam.
- It is India’s second longest railroad bridge.
Which of the given statement/s is/are INCORRECT?
- 1 only
- 2 and 3 only
- 2 only
- None of the above
CHECK ANSWERS:-
Answer: b
Explanation:
- The Bogibeel project was a part of the 1985 Assam Accord and was sanctioned in 1997-98.
- It is a combined road and rail bridge built over River Brahmaputra in Assam.
- It is India’s longest railroad bridge.
Q3. Consider the following statements with respect to the Central Bureau of Investigation:
- The Central Bureau of Investigation (CBI) draws its legality from the Delhi Special Police Establishment (DSPE) Act, 1946.
- CBI functions under the Department of Personnel, Ministry of Personnel, Pension & Public Grievances.
- CBI was established based on the recommendations of the Santhanam Committee on Prevention of Corruption.
Which of the given statement/s is/are correct?
- 1 and 2 only
- 1, 2 and 3
- 2 only
- 1 and 3 only
CHECK ANSWERS:-
Answer: b
Explanation:
- The CBI draws its legality from the 1946-Delhi Special Police Establishment Act (DSPE).
- It functions under the Department of Personnel, Ministry of Personnel, Pension & Public Grievances.
- The precursor to the CBI was the Special Police Establishment, which was India’s first agency to investigate corruption. It was set in 1946 by the British.
- In 1963, the Home Ministry expanded its power and changed its name to the Central Bureau of Investigation. But, it is still governed by the 1946 Act.
- At present, the CBI director is appointed by the Centre on the basis of the recommendation of a search committee comprising the Prime Minister as the chairperson, the Chief Justice of India and the Leader of Opposition.
- CBI was established based on the recommendations of the Santhanam Committee on Prevention of Corruption.
Q4. Consider the following statements with respect to Ordinances:
- An ordinance is a law that is promulgated by the President of India only when the parliament is not in session.
- An ordinance can be retrospective in nature.
- Ordinance ceases to exist if parliament takes no action within six weeks from its reassembly.
Which of the given statement/s is/are correct?
- 1 only
- 2 and 3 only
- 1 and 3 only
- 1, 2 and 3
CHECK ANSWERS:-
Answer: d
Explanation:
All the statements are correct.
I. UPSC Mains Practice Questions
- Though confrontation and competition between the U.S. and China will dominate this century, interdependence between the two superpowers is also a reality which the two countries will have to admit. Elucidate. (10 marks, 150 words) [GS-2, International Relations]
- India has been witnessing growing inequalities and the COVID-19 pandemic has only accelerated the trend. Discuss the reasons for the same and the concerns associated with it. Also suggest the measures needed to address the issue of economic inequality in India. (15 marks, 250 words) [GS-1, Social issues]
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CNA 6th April 2021:- Download PDF Here
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