28 Aug 2020: UPSC Exam Comprehensive News Analysis

28 Aug 2020 CNA:- Download PDF Here

TABLE OF CONTENTS

A. GS 1 Related
B. GS 2 Related
POLITY AND GOVERNANCE
1. Borrow from RBI to bridge GST gap, Centre tells States
2. Arunachal House to push for Sixth Schedule status
3. States can have sub-groups among SC/STs, says court
C. GS 3 Related
ECONOMY
1. Govt. moots action against personal guarantors
2. India can be weapons supplier: PM
D. GS 4 Related
E. Editorials
SECURITY
1. An air-tight case
GOVERNANCE
1. Can a digital ID aid India’s primary health ecosystem?
F. Prelims Facts
G. Tidbits
1. Pakistan providing shelter to Azhar is regrettable, says MEA
2. India’s state refiners halt crude oil purchases from Chinese firms
H. UPSC Prelims Practice Questions
I. UPSC Mains Practice Questions

2. Arunachal House to push for Sixth Schedule status

This topic has been covered in the 14th August 2020 CNA: Arunachal groups push for 6th Schedule status.

3. States can have sub-groups among SC/STs, says court

Context:

Supreme Court judgement on sub-classification of Scheduled Castes and Scheduled Tribes in the Central List.

Judgement:

  • A five-judge Bench of the Supreme Court has held that States can sub-classify Scheduled Castes and Scheduled Tribes in the Central List to provide preferential treatment to the “weakest of the weak”.
  • “Citizens cannot be treated to be socially and educationally backward till perpetuity; those who have come up must be excluded like the creamy layer,” the judgment said.
  • With this, the Bench took a contrary view to a 2004 judgment delivered by another Coordinate Bench of five judges in the E.V. Chinnaiah case.
    • The Chinnaiah judgment had held that allowing the States to unilaterally make a class within a class of members of the Scheduled Castes would amount to tinkering with the Presidential list.
  • Justice Mishra disagreed with this and reasoned that sub-classifications within the Presidential/Central List does not amount to tinkering with it as no caste is excluded from the list.

The Central List of Scheduled Castes and Tribes is notified by the President under Articles 341 and 342 of the Constitution. The consent of the Parliament is required to exclude or include castes in the List. In short, States cannot unilaterally add or pull out castes from the List.

Details:

  • The Constitution Bench, led by Justice Arun Mishra, said reservation has created inequalities within the reserved castes itself.
  • The court pointed out that there is a caste struggle within the reserved class as the benefits of reservation are being usurped by a few.
  • The judgment is significant as it fully endorses the push to extend the creamy layer concept to the Scheduled Castes and Scheduled Tribes.

Note:

Now with two numerically equal Benches of judges holding contrary viewpoints, the issue has been referred to a seven-judge Bench of the court.

Also read: Important Supreme Court judgements for UPSC.

2. India can be weapons supplier: PM

Context:

The Prime Minister has said that India has the capability to become a reliable weapons supplier to friendly nations.

  • The PM said that India will consolidate its position as the net security provider in the Indian Ocean region, highlighting self-reliance in defence manufacturing.

Details:

  • A series of measures were recently announced to boost domestic defence manufacturing.
  • Corporatisation of the Ordnance Factory Board (OFB) is under progress.
  • For the first time, 74% Foreign Direct Investment (FDI) in defence is allowed through the automatic route.
  • Also, the government recently issued a draft Defence Production and Export Promotion Policy (DPEPP) 2020 for public feedback with the aim to achieve a manufacturing turnover of $25 bn or ₹1,75,000 crore, including exports of $5 bn in aerospace and defence goods and services by 2025.
  • Work is in progress in the two defence industrial corridors in Uttar Pradesh and Tamil Nadu and a target of ₹20,000 crore investments had been set for the next five years.
  • Recently, 101 items’ negative import list was announced and these items have been reserved for the domestic industry.

Read more on this topic covered in the 4th August 2020 CNA: Govt. issues draft policy to ramp up defence exports.

2. India’s state refiners halt crude oil purchases from Chinese firms

What’s in News?

Indian state refiners have stopped buying crude oil from China-linked companies, following the recent regulation aimed at restricting imports from countries that India shares a border with.

Note:

  • To participate in Indian tenders, the order makes registration with a department in the Commerce Ministry ‘mandatory’ for any bidders from nations sharing a border with India.
  • India shares borders with China, Pakistan, Bangladesh, Myanmar, Nepal and Bhutan, but the government statement did not name any specific country.

Details:

  • Since the new order was issued, state refiners have been inserting a clause in their import tenders on new rules restricting dealings with companies from countries sharing a border with India.
  • State refiners, which control 60% of India’s 5 million barrels-per-day refining capacity, regularly tap spot markets for crude.
  • India is the world’s third-biggest oil consumer and importer and imports almost 84% of its oil needs.
  • China does not export crude to India but Chinese firms are major traders of the commodity globally.

H. UPSC Prelims Practice Questions

Q1. Consider the following statements with respect to compensation cess:
  1. The cess will not be payable by exporters and those persons who have opted for compensation levy.
  2. The cess will compensate the states for any revenue loss on account of the implementation of GST.
  3. The input tax credit of this cess can be used to pay taxes like CGST, SGCT or IGST.

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

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

Answer: a

Explanation:

  • The compensation cess will compensate the states for any revenue loss on account of the implementation of GST.
  • This cess will not be payable by exporters and those persons who have opted for compensation levy.
  • The input tax credit of this cess can be only used to pay compensation cess and not the other taxes like CGST, SGCT or IGST.
Q2. Which of the following tribes are Particularly Vulnerable Tribal Groups residing in 
the Andamans?
  1. Great Andamanese
  2. Jarawas
  3. Onges
  4. Shompens
  5. North Sentinelese

Choose the correct option:

  1. 1, 2 and 4 only
  2. 1, 2, 3 and 5 only
  3. 1 and 5 only
  4. 1, 2, 3, 4 and 5
CHECK ANSWERS:-

Answer: d

Explanation:

The five Particularly Vulnerable Tribal Groups residing in Andamans are Great Andamanese, Jarawas, Onges, Shompens and North Sentinelese.

Q3. Consider the following statements:
  1. Articles 341 and 342 of the Constitution of India define as to who would be Scheduled Castes and Scheduled Tribes with respect to any State or Union Territory.
  2. The Central List of Scheduled Castes and Tribes is notified by the President.
  3. The consent of the Parliament is required to exclude or include castes in the List.

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

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

Answer: d

Explanation:

  • Articles 341 and 342 of the Constitution of India define as to who would be Scheduled Castes and Scheduled Tribes with respect to any State or Union Territory.
  • The Central List of Scheduled Castes and Tribes is notified by the President under Articles 341 and 342 of the Constitution.
  • The consent of the Parliament is required to exclude or include castes in the List.
  • States cannot unilaterally add or pull out castes from the List.
Q4. Consider the following statements with respect to the Insolvency and Bankruptcy 
Code (IBC):
  1. It provides for a time-bound and market-linked resolution of stressed assets.
  2. It does not provide for the initiation of insolvency proceedings against personal guarantors of corporate debtors.
  3. Any person aggrieved by the order of the National Company Law Tribunal may make an appeal to the High Court.

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

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

Answer: c

Explanation:

  • Insolvency and Bankruptcy Code provides for a time-bound and market-linked resolution of stressed assets.
  • Any person aggrieved by the order of the National Company Law Tribunal may make an appeal to the National Company Law Appellate Tribunal.
  • The Code also provides for the initiation of insolvency proceedings against personal guarantors of corporate debtors.
  • The rule governing the initiation of the insolvency process against the personal guarantor to corporate borrowers came into effect from December 2019.
  • It empowers creditors to file insolvency applications against personal guarantors under the IBC.

I. UPSC Mains Practice Questions

  1. Lower than expected GST revenues have resulted in delayed and pending compensation payments to states. Discuss the available solutions to tackle this issue. (GS 2/Polity) (15 Marks, 250 Words).
  2. Discuss the challenges for India in achieving self-reliance in defence production and suggest suitable measures to overcome such challenges. (GS 3/Defence) (15 Marks, 250 Words).

Read the previous CNA here.

28 Aug 2020 CNA:- Download PDF Here

2 Comments

  1. Hello sir , i have been reading your CNA for past 2 months , is it necessary to read newspaper also along with this ??

    1. Newspaper reading is a good habit. Complementing CNA with it can make you feel even more confident on current updates. You may like to read on how to read The Hindu for UPSC.

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