27 Dec 2020: UPSC Exam Comprehensive News Analysis

A. GS 1 Related

B. GS 2 Related

C. GS 3 Related

Category: ENVIRONMENT

1. New species of sun rose found in the Eastern Ghats

Context:

• Botanists have discovered a new species of the wild sun rose from the Eastern Ghats in India. The new species, named Portulaca laljii, discovered from Prakasam district of Andhra Pradesh

Details about the new specie

• It has unique features such as a tuberous root, no hair in its leaf axils, a reddish-pink flower, prolate-shaped fruits, and copper brown seeds without lustre.
• The flowers are very attractive and bloom for months from June to February. The plant can have a rich horticultural value
• The succulent nature of tuberous roots allow the plant to survive on rocky crevices

D. GS 4 Related

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E. Editorials

Category: SCIENCE AND TECHNOLOGY

1. Coronavirus new strain

Context:

• The news of the emergence of a new strain originating in the United Kingdom(UK) has created panic among other countries thus forcing them to take mitigative measures to prevent the spread of the new strain.
• Mutations were reported from different parts of the world, including Denmark, Australia, England and South Africa.
• The emergence of a new strain of the virus, caused by mutations, that seemed to be 70% more transmissible.

Details:

• The new variant, VUI–202012/01, has accounted for nearly 60% of all cases in London by mid-December.
• The new variant is thought to be 70% more transmissible than earlier versions of the coronavirus.
• Concerns have been raised over the nature and location of the mutation, the mutation was at the receptor-binding domain of the spike protein, which the virus uses to enter the human body. This protein is also one of the targets of vaccines currently being developed.

What is the WHO saying?

• World Health Organization (WHO) has played down the fears about the mutation, it stated that viruses mutate over time and it is natural in virology and all the fears and discussions without further studies are not warranted.

Why do viruses mutate?

• A mutation means an alteration in genetic material. A mutation is part of the life cycle of a virus. Once the virus enters a host, it begins to replicate and make copies of itself. In an RNA virus such as SARS-CoV-2, proteins are made of a sequence of amino acids. Such a virus contains some 30,000 ‘base pairs’, which can be likened to bricks placed next to each other to form a structure.
• An alteration in this base can be a mutation, effectively changing the shape and behaviour of the virus.
• In the UK variant, one mutation has made the virus more likely to bind with human proteins called receptors. This is called N501Y.
• During the process of virus replication, random errors arise, one or two protein molecules change, possibly induced by the immune response mounted within infected people
• These changes in the genomic structure of the virus can be considered mutations. Not all mutations are significant, but those that affect the virus’s ability to survive or replicate are important.

How was the new strain identified?

• The English variant was identified in genomic surveillance by COVID-19 Genomics UK (COG-UK)
• Mutations arise naturally in the SARS-CoV-2 genome as the virus replicates and circulates in the human population, as a result of this on-going process, many thousands of mutations have already arisen in the SARS-CoV-2 genome since the virus emerged in 2019
• The vast majority of the mutations observed in SARS-CoV-2 have no apparent effect on the virus and only a very small minority are likely to be important and change the virus in any appreciable way (for example, a change in the ability to infect people; cause disease of different severity; or become insensitive to the effect of the human immune response including the response generated by a vaccine).
• The variant is the result of multiple mutations in the spike protein (the point of viral entry into the host) of SARS-CoV-2, as well as mutations in other genomic regions of the RNA virus.
• COG-UK reportedly identified one of these mutations as ‘N501Y’, in an area of the spike protein that binds to a key protein in the human cell, the ACE2 receptor. This was an indication that the alterations may, theoretically, result in the virus becoming more infectious.

 Can it be detected through PCR tests?

• PCR test is used to identify a number of gene targets and will be able to identify this variant as well.
• India is currently taking precautions such as making RT-PCR tests mandatory and also a separate unit for those diagnosed with the new strain of coronavirus.

Is it known how a vaccine will react?

• While studies are being carried out to ascertain the impact of the vaccine on the severity of disease or mortality. The hope is that the vaccine’s efficacy will not be drastically impaired by the mutation.
• Several experts believe that vaccines would remain effective despite the mutation because the immune response generated is against the complete surface, so even in the event of a change in a particular point the vaccine still remains effective.
• Vaccines will offer protection even from a mutant virus. By their very nature, they will make a variety of different antibodies and memory cells that will help fight off the infection, he adds.

How can you protect yourself?

• The preventive measures do not change, the measures that were encouraged still hold relevance, like using a face mask, regularly washing hands, and maintaining distance with others when in a public setting will continue to be the best practical ways to prevent the infection.

Conclusion

• It is true that the new variant requires caution but the experts have so far sounded optimistic about the combating capabilities of vaccination.

Category: ECONOMY

1. A slump and green shoots of recovery

Context:

• The COVID-19 pandemic has thrown the economies world over off the rails and Indian economy hasn’t been an exception.
• The impact of the pandemic on the economy has felt across all sectors, reflected by GDP contraction in the first and the second quarter.

Details:

• The pandemic affected 2020 sent India’s economy into a tailspin, this disruption was witnessed across the globe.
• The virus seemed to hit India the hardest, upon deep observation and analysis, the data suggested that Indian economy was showing signs of deterioration from several quarters preceding the pandemic and the poor performance of the first and second quarter of the economy this year cannot be solely blamed on the pandemic.

Why was India hit hard?

• India’s economic figures were looking dull before the pandemic struck, the GDP figures steadily declined from 8.18% in the final quarter of 2017-2018.
• The data at the beginning of 2020 suggested that India was expanding at meagre 4.08%, suggesting a sustained reduction in the growth numbers.
• Several economic experts blamed the demonetization and the Goods and Service Tax for such a consistent decline, even terming it as ‘major disruptors’.
• The government was making efforts to revive the economy, but the onset of the coronavirus meant that the Government had to shift focus on limiting the damage caused by the pandemic and the following pandemic.

What happened in the quarter between January and March?

• India’s growth slowed to 3.09% between January and March of 2020, its lowest quarterly growth rate since 2012.
• The country’s growth for the financial year 2019-20 was at a low 4.2%, various economic indicators, such as private consumption and exports, were at their lowest levels in five or more years, indicating that the economy was suffering even before the lockdown.
• However, COVID-19 and the lockdown increased the momentum of decline and ensured that no sector in the economy was spared. The COVID-19 has diverted the attention from the poor performance of the economy preceding it.

How were the States affected?

• While officials used the Epidemic Diseases Act of 1897, the rules of the lockdown were tweaked, altered and modified multiple times by the Ministry of Home Affairs.
• The rules were interpreted in multiple ways by State and local administrations, this led to chaos and confusion regarding inter-state movement for goods and also migrants who share a symbiotic relationship with economic activities, suffered from the grounding of the economy.

Who benefited from the stimulus package?

• The initial lockdown was very tight in restrictions, this meant that apart from essential goods like food and medicines.
• Thus, many course corrections were made on the way — E-passes was launched for employees to reach their workplaces and for the transport of goods across the country, along with special trains for migrant workers to go back home.
• However, this level of the clampdown was not possible to be observed for too long, thus, gradually the lockdown was eased with the gradual relaxation of restrictions to make way for a resumption of economic activities.
• The Atmanirbhar Bharat Abhiyan was launched to bring relief to the economy. Atmanirbhar Bharat Abhiyaan or Self-reliant India campaign is the vision of new India.
• A Special economic and comprehensive package of INR 20 lakh crores – equivalent to 10% of India’s GDP – to fight COVID-19 pandemic in India was announced.
• The aim is to make the country and its citizens independent and self-reliant in all senses.  Five pillars of Aatma Nirbhar Bharat were outlined – Economy, Infrastructure, System, Vibrant Demography and Demand.
• Finance Minister further announced Government Reforms and Enablers across Seven Sectors under Aatmanirbhar Bharat Abhiyaan.
• The direct stimulus effect of this package was limited and some of the reforms it promised, like a new strategic disinvestment policy for public sector enterprises, are still yet to be implemented.

Why did the April-June quarter see a sharp fall?

• The economy contracted nearly 24% in the April-June quarter — the sharpest fall since quarterly growth began to be recorded in 1996.
• Agriculture appeared to be the lone shining light, as it was the only sector that witnessed positive growth.
• A decline in manufacturing output, services and construction had a profound impact as these sectors generate the maximum employment.
• The strict lockdown had taken its toll, with job losses and salary cuts becoming the norm in the formal sector, while the informal sector silently withered.
• The rest of the world had also gone into the lockdown mode, but the damage to the economy in India was the sharpest among major economies. And despite this, the virus was far from contained and inflation crossed the 6% mark led by rising food prices.

How did unlocking the economy help?

• Marked by a progressive unlocking of the economy, by the end of the July-September quarter, the Home Ministry had even permitted the resumption of public transit systems, including metros.
• India managed to reduce its contraction in the second quarter to 7.5% when compared to the first-quarter GDP data of 23.9%, this was when economists had predicted India to witness a shrinkage of close 10%.
• Agricultural growth remained constant, while manufacturing managed to record positive growth, the second quarter data suggesting an uptick in industrial activity with a 0.6% expansion in industrial output.
• However, the rough patch was far from over for services such as retail trade and hotels (particularly impacted by social distancing norms) and sectors such as mining and construction.
• Among other things, rating agency CRISIL attributed the better-than-expected growth to pent-up demand finding expression after months of being locked up at home, cost savings for corporates (read ‘retrenchments lowering staff costs’) and a ‘learning to live’ attitude. Government spending — critical for India to get out of this economic rut — collapsed, even as inflation remained high.

What is the RBI’s view on growth prospects?

• The economy is said to have entered a ‘technical’ recession after two successive quarters of contraction, the government in response announced a slew of support measures over October and November and is expecting a more optimal performance in the following quarter, hoping to see an expansion in GDP data.
• A ‘nowcast’ released by the Reserve Bank of India (RBI) suggests India’s recovery rate is fairly optimistic with a possibility of 0.1% growth.
• An improved GST collection, the expansion of industrial output in the second quarter with 0.6%, improved capacity to deal with the pandemic have given reasons to believe for better economic performance.
• But their coincidence with India’s festive season and a reported plateauing in activity after the Deepawali festival, make it difficult to assess if this recovery is real and sustainable and also the news of the new emerging mutation in the virus as seen in the UK and other countries already are causing fear and anxiety.
• But as the year draws to a close, there is a glimmer of hope that the economy may see some recovery in 2021, that optimism, and the hopes of an imminent vaccine option for Indians should ideally help the economy leave 2020 and its worst manifestations behind.

Conclusion:

• The slowdown has been built up over the preceding 3 years on the demand side and the response has been on the supply side. Therefore, the slowdown is deeper than it was imagined, with employment and declining investment rate being major concerns.
• A large number of banks are reluctant to lend and the credit growth has slowed down. There is a need to improve the liquidity situation and the public sector has to take the lead in spurring demand.

F. Prelims Facts

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Q1.Consider the following statements

Q2.Coringa wildlife sanctuary is situated in

Q4.Consider the following statements

I. UPSC Mains Practice Questions

1. “A safe water supply is the backbone of a healthy economy”, in the light of the above statement highlight the steps taken by the governments to improve the supply of safe and adequate water in the country. (10 marks, 150 words) GS-2 Social Sector
2. India’s economy has been witnessed a sustained decline in growth rates, explain the factors contributing to such a decline and also suggest measures to reverse such a decline. (15 marks, 250 words) Gs-3 Indian Economy

Read the previous CNA here.

CNA 27 Dec 2020:- Download PDF Here