04 Aug 2022: UPSC Exam Comprehensive News Analysis

Quote for the day Set 5 11

CNA 04 Aug 2022:- Download PDF Here

TABLE OF CONTENTS

A. GS 1 Related
B. GS 2 Related
INTERNATIONAL RELATIONS
1. China steps up pressure on Taiwan
C. GS 3 Related
D. GS 4 Related
E. Editorials
INTERNATIONAL RELATIONS
1. Global Acceptance of the Taliban
INDIAN SOCIETY
1. Reaping the demographic dividend
ECONOMICS
1. Swell in Current Account Deficit
F. Prelims Facts
1. INS Vikramaditya
2. Central Vigilance Commission (CVC)
3. Garuda Shield exercise
G. Tidbits
1. Cabinet nod for climate pledges
2. Union govt. rolls back Data Protection Bill
H. UPSC Prelims Practice Questions
I. UPSC Mains Practice Questions

FIP Magazine

Category: INDIAN SOCIETY

1. Reaping the demographic dividend

Syllabus: Population and Associated Issues

Mains: Potential of Demographic Dividend to Indian Economy

Context: World Population Prospects(WPP) 2022 by the United Nation forecasts that the global population will reach 08 billion this year and India’s population will surpass China’s by 2023 and continue to surge.

Read more on World Population Prospects 2022

India’s potential workforce:

  • As per the WPP 2022, India’s population is expected to grow from its current 1.4 billion people to 1.67 billion in 2050 and it is expected to peak at 1.7 billion sometime in 2064.
  • By 2050 China will have 1.3 billion people, of whom 500 million will be past the age of 60. India’s population, by contrast, would have peaked at 1.7 billion, of whom only 330 million will be 60 years or older giving a much longer advantage of Demographic dividend to India.
  • As per studies, India’s potential workforce will rise from 885 million to 1.08 billion people over the next 20 years and remain above a billion people for half a century.
  • Developments in automation and digitisation, shifting supply chains along with rising incomes, urbanization and demographic shifts with a better focus on health and sustainability accelerate to create $2.5 trillion of economic value in 2030 and support 112 million jobs, or about 30% of the non-farm workforce in 2030.

Added advantages over China:

Compared to 1970s China, India is in a better position to transform itself into a global economic leader.Β 

  • Democracy is much celebrated in India with an open society where mass protest matters and produces results.Β 
  • Indians have not been traumatized as Chinese due to events such as the Great Leap Forward and the Cultural Revolution in China.Β Β 
  • Well-developed and cheaper IT technologies and Infrastructure will be an added advantage to India.
  • Learning is revolutionized with advanced technologies. This will help in the transformation of the unskilled population into skilled workers quickly.
  • India’s administrative system is in far better shape today than it was for China at the start of its reforms.Β 
  • Because of the progressive population control measures of India, it does not have to suffer the consequences of a prematurely ageing society with a skewed gender ratio similar to China.
  • India does not have a Hukou system which China used to actively limit where a person is allowed to live, especially if one is born into a rural hukou. This disincentivized migration to urban areas, only about 36% of China’s overall population is urban and fully 64% is rural. This created a deep divide between a small and prosperous urban China and a much larger rural China.

Read more on Demographic DividendΒ 

Way Forward:Β 

Massive investment in quality school and higher education and health care sector across India between now and 2050 along with the creation of a single national market, renewable energy-centric expansion of industry and a move in supply chains away from China with continued progress in IT, and a high-tech welfare safety-net for the population can help India to reap the benefits of Demographic dividend.Β 

Nut Graf: India is in a much better position than China back in the 1970s to reap its demographic dividend and rise to be an economic powerhouse by the end of this century. India is getting a demographic dividend that will last nearly 30 years. Given the will, it can initiate and see through a transformation and seize the moment.

Category: ECONOMICS

1. Swell in Current Account Deficit

Syllabus: Issues Relating to Planning, Mobilization of Resources, Growth, Development & Employment

Mains: Impact of widening Current Account DeficitΒ Β 

Context: Provisional trade data released by the Union Commerce ministry for the month of July 2022 shows a widened trade deficit for the third successive month.Β 

Provisional Trade data:

  • India’s merchandise trade deficit increased to $31.02 billion in July 2022, as merchandise imports at $66.26 billion outpaced exports of $35.24 billion.
  • 2022 July’s merchandise import was 43.59 % higher than $46.15 billion of imports in July 2021.
  • Merchandise export in this period remained flat, at almost similar levels of $35.51 billion in July 2021.
  • Merchandise exports in the first 04 months of the fiscal (April-July) 2022-23 at $156.41 billion, while registering a year-on-year increase of 19.35% over $131.06 billion in the same period of FY 2021-22, was surpassed by merchandise imports.
  • The trade deficit during April- July of the financial year 2022-23 was $100.01 billion.
  • Engineering goods exports fell 2.54%Β  year-on-year to $9.30 billion in July 2022 as compared to $9.54 billion in July 2021.

Reasons behind widening deficit:

  • High global commodity prices and consequent pressure on the Rupee’s exchange rate.
  • Sustained disruptions of supply chains because of the pandemic and the Russia-Ukraine conflict.
  • Tighter measures to control inflation.
  • A $20 billion Year over Year increase in imports was led by petroleum products and coal, negating the relief offered by a decline in gold imports.Β 
  • Recessionary trends in the US and Europe which are among the top destinations for engineering exports.
  • The export figures have also been affected as the prices of most of the metals and commodities are falling, which has resulted in value-wise export realization.
  • The stiff export tax on a range of steel products, to boost their domestic availability, was likely to have constrained exports of this segment of engineering goods.
  • Expansion of imports, driven largely by the growing domestic demand for essentials including coal, crude oil, edible oils and electronic items.Β 

Concerns:

  • The Stagnant growth of exports reflects a slowdown in overseas demand for Indian merchandise. This affects the competitive advantage gained by the rupee’s sizable depreciation against the U.S. dollar.Β 
    • Decrease in exports can be seen as a result of inflation-control curbs.
  • But various key sectors including gems and jewelry,Β  engineering goods, drugs and pharmaceuticals and garments and yarn and textiles which were mostly outside the purview of those measures, also suffered contractions.Β 
  • The two consecutive quarters of negative growth have added to the fears that the US may slip into recession.
  • Growing trade deficit further widens current account deficit, adding pressure on the rupee at a time when FPI has been negative, and FDI has been significantly weaker. This makes the external sector increasinglyΒ  vulnerable.

Nut Graf: India’s widening current account deficit caused due to various geopolitical reasons has resulted in inflation and reduced demand for Indian merchandise. This trend is a cause of concern for India which is on the path to recovery from the pandemic-induced slowdown.

F. Prelims Facts

1. INS Vikramaditya

Syllabus: GS3, Security; Various Security forces and agencies and their mandate.Β 

Prelims: About INS Vikramaditya

Context: INS Vikramaditya is undergoing its first major refit since December 2020.

INS Vikramaditya

  • INS Vikramaditya is a modified Kiev-class aircraft carrier of the Indian Navy that entered into service in 2013.
  • INS Vikramaditya is the Indian Navy’s largest short take-off but assisted recovery (STOBAR) aircraft carrier and warship.
  • INS Vikramaditya is converted from the Russian’s decommissioned Admiral Gorshkov vertical take-off and landing (VTOL) missile cruiser carrier.
  • INS Vikramaditya can carry over 30 long-range multi-role fighters with anti-ship missiles, air-to-air missiles, guided bombs, and rockets.Β 
  • INSVikramaditya is undergoing its first major refit since December 2020, according to Naval officials a ship or submarine goes for a refit after two years of operation.

Read more about INS Vikramaditya.

2. Central Vigilance Commission (CVC)

Syllabus: GS2, Polity; Statutory, regulatory and various quasi-judicial bodies.

Prelims: Central Vigilance Commissioner (CVC)

Context: Vigilance Commissioner Suresh N. Patel was sworn in as the Central Vigilance Commissioner by President Droupadi Murmu at the Rashtrapati Bhavan

Central Vigilance Commission (CVC)

  • The CVC was set up in 1964, as an apex body for exercising general superintendence and control over vigilance administration, through a Government of India resolution.
  • The mandate of the Commission was based on the recommendations of the K. Santhanam Committee report of the Committee on Prevention of Corruption.
  • CVC was accorded a β€œstatutory status” through an ordinance by the President in 1998 and eventually, the Central Vigilance Commission Act was promulgated in 2003.
  • The CVC consists of a central vigilance commissioner who acts as a Chairperson and not more than two Vigilance Commissioners as members.
  • The Central Vigilance Commissioner and the Vigilance Commissioners are appointed by the President based on the recommendation of a Committee consisting of:
    • Prime Minister
    • Minister of Home Affairs (MHA)
    • Leader of Opposition in Lok Sabha

Know more aboutΒ  Central Vigilance Commissioner (CVC).

3. Garuda Shield exercise

Syllabus: GS2, International Relations; Effect of policies and politics of developed and developing countries

Prelims: About Garuda Shield exercise

Garuda Shield exercise

  • Garuda Shield is an annual military training and joint combat exercise between the United States and Indonesia.
  • Garuda Shield has been held since 2009.
  • The 2022 edition has been regarded as the β€œSuper Garuda Shield” as it has become one of the biggest joint, multinational exercises in the Indo-Pacific region.
  • Garuda Shield 2022 is being held in Indonesia’s Sumatra island.
    • Over 5,000 soldiers from the U.S., Indonesia, Australia, Japan and Singapore are taking part in the exercise.
    • Other nations participating in the exercise include Canada, France, India, Malaysia, New Zealand, the Republic of Korea, Papua New Guinea, Timor Leste, and the United Kingdom.
    • The aim of the 2022 edition is to strengthen interoperability, capability, trust and cooperation in support of a free and open Indo-Pacific.

G. Tidbits

1. Cabinet nod for climate pledges

  • The Indian Cabinet has ratified the commitments made by the Prime Minister at the COP26 in Glasgow to boost India’s reliance on renewable energy to power the economy and be effectively free from the use of fossil fuels by 2070.
  • The five commitments (Panchamrit) made at COP26 include:
    • India will increase its non-fossil energy capacity to 500 GW (gigawatt) by 2030
    • Meeting 50% of India’s energy requirements through β€œrenewable energy” by 2030
    • Reducing the total projected carbon emissions by one billion tonnes till 2030
    • Reducing the carbon intensity of India’s economy by over 45%
    • Achieving the target of β€œnet zero” by the year 2070, when there will be no net carbon dioxide emitted from energy sources
  • However, India’s updated Nationally Determined Contribution (NDC) post Cabinet approval, only includes two of these commitments, namely:
    • India is committed to reducing the emissions intensity of its GDP by 45% by 2030, from the 2005 level.
    • Achieving 50% of total electric power installed capacity through non-fossil fuel-based energy resources by 2030.

Learn more about – COP26 Climate Change Conference

2. Union govt. rolls back Data Protection Bill

  • The Union government withdrew the Personal Data Protection Bill, 2019 and said it will come up with a new Bill that β€œfits into the comprehensive legal framework” which includes the recommendations made by the Joint Committee of Parliament (JCP).
  • The JCP had earlier suggested over 81 amendments to the Bill.
  • There were questions about the proposed Data Protection Authority getting a constitutional status and if the States should have their own Data Protection Authorities.

Read more about the Personal Data Protection Bill, 2019

H. UPSC Prelims Practice Questions

Q1. Hellfire R9X missile also known as the "ninja bomb" recently in news was 
developed by which country? (Level – Easy)
  1. China
  2. Russia
  3. USA
  4. UK

Answer:

CHECK ANSWERS:-

Answer: c

Explanation:

The R9X

Image Source: News18

  • The Hellfire R9X is a US-origin missile and is also called the β€œNinja Missile” or “Ninja Bomb”.
    • Hellfire is an abbreviation for Heliborne, Laser, Fire and Forget Missile.
  • The missile is known to cause minimum collateral damage while engaging individual targets.
    • The Hellfire 9RX missile has been in service since 2017.
  • The weapon is not equipped with a warhead and instead deploys razor-sharp blades at the terminal stage of its attack trajectory.Β 
    • This helps it to break through thick steel sheets and cut down the target using the kinetic energy of its propulsion without causing any damage to the persons in the general vicinity or to the structure of the building.
  • TheΒ  Hellfire missile was developed by Lockheed Martin and Northrop Grumman and has other variants such as β€˜Longbow’ and β€˜Romeo’ apart from the β€˜Ninja’.
Q2. The Central Vigilance Commissioner and the Vigilance Commissioners shall be 
appointed by the President on recommendation of a Committee consisting of the 
(Level – Medium)
  1. Prime Minister
  2. Minister of Home Affairs
  3. Leader of the Opposition in the Upper House
  4. Chief justice of India or Judge of Supreme Court
  5. Leader of the Opposition in the Lower House

Options:

  1. 1, 2 and 3 only
  2. 2, 3 and 4 only
  3. 1, 2 and 5 only
  4. 1, 3 and 4 only

Answer:

CHECK ANSWERS:-

Answer: c

Explanation:

  • The Central Vigilance Commissioner and the Vigilance Commissioners are appointed by the President based on the recommendation of a Committee consisting of:
    • Prime Minister
    • Minister of Home Affairs (MHA)
    • Leader of Opposition in Lok Sabha (Lower House)
Q3. Consider the following statements: (Level – Difficult)
  1. Sultan Quli Qutub-ul-Mulk founded the city of Hyderabad.
  2. The Qutb Shahi dynasty came to an end when the Mughal Emperor Aurangzeb arrested and jailed Sultan Abul Hasan Qutb Shah for the rest of his life.

Which of the statements given above is/are incorrect?

  1. 1 only
  2. 2 only
  3. Both
  4. None

Answer:

CHECK ANSWERS:-

Answer: a

Explanation:

  • Statement 1 is not correct, Muhammad Quli Qutb Shah who was the fifth sultan of the Qutb Shahi dynasty of Golkonda founded the city of Hyderabad.
  • Statement 2 is correct, the Qutb Shahi dynasty ruled for 171 years until the Mughal emperor Aurangzeb’s army conquered Golconda in 1687 and jailed Sultan Abul Hasan Qutb Shah for the rest of his life.

 

Q4. The Sunderlal Committee, appointed by Jawaharlal Nehru is closely related to
(Level – Medium)
  1. Annexation of Hyderabad
  2. Assam and Arunachal Pradesh Border Dispute
  3. Defence Production and Procurement
  4. States Reorganisation

Answer:

CHECK ANSWERS:-

Answer: a

Explanation:

  • The Sunderlal Committee, appointed by Jawaharlal Nehru reported about the killings in the Hyderabad region post-OperationΒ Polo.
  • Operation Polo was the codename for the police action against the Princely State of Hyderabad which led to the Annexation of Hyderabad.

 

Q5. Which of the following countries are part of Minerals Security Partnership?Β 
(Level – Medium)
  1. Australia
  2. India
  3. Japan
  4. New Zealand
  5. Sweden
  6. United Kingdom
  7. USA

Options:

  1. 1, 2, 3, 4, and 7 only
  2. 2, 3, 4, 5, 6 and 7 only
  3. 1, 3, 5, 6 and 7 only
  4. 1, 2, 4 and 6 only

Answer:

CHECK ANSWERS:-

Answer: c

Explanation:

  • Minerals Security Partnership is a US-led partnership to secure supply chains of critical minerals, aimed at reducing dependency on China.
  • Minerals Security Partnership includesΒ Australia, Canada, Finland, France, Germany, Japan, the Republic of Korea, Sweden, the UK, the US, and the European Commission.
    • India is currently not part of the Minerals Security Partnership.Β 
Q6. Which one of the following statements best reflects the issue with Senkaku Islands, 
sometimes mentioned in the news? (Level – Easy) PYQ (2022)
  1. It is generally believed that they are artificial islands made by a country around South China Sea.
  2. China and Japan engage in maritime disputes over these islands in East China Sea
  3. A permanent American military base has been set up there to help Taiwan to increase its defence capabilities.
  4. Though International Courts of Justice declared them as no man’s land, some South-East Asian countries claim them.

Answer:

CHECK ANSWERS:-

Answer: b

Explanation:

  • The Senkaku/Diaoyu Islands are uninhabited islands in the East China Sea which are claimed by both Japan and China.

Read the previous CNAΒ here.

CNA 04 Aug 2022:- Download PDF Here

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