09 Feb 2020: UPSC Exam Comprehensive News Analysis

January 9th, 2020 CNA:- Download PDF Here

TABLE OF CONTENTS

A. GS 1 Related
B. GS 2 Related
POLITY AND GOVERNANCE
1. Reservation in promotion in public posts not a fundamental right: SC
INTERNATIONAL RELATIONS
1. ‘Keep agri, dairy products out of trade deal with U.S.’
2. Modi flags Tamil concerns to Mahinda
C. GS 3 Related
SCIENCE AND TECHNOLOGY
1. West Bengal growing arsenic-resistant rice
2. How bats harbour several harmful viruses without falling sick
ECONOMY
1. ‘Economy revival is around the corner’
2. Utilise shift in orders from virus-hit China, textile exporters urged
D. GS 4 Related
E. Editorials
ECONOMY
1. LIC stake sale
HEALTH 
1. What is the debate around RO water?
2. A window into novel coronavirus transmission
F. Tidbits
1. Fireflies under threat
2. Jagan opens Disha police station
3. Women Army officers criticise Centre’s note
4. China turns to Artificial Intelligence, big data
5. Coronavirus death toll in China rises to 722
G. Prelims Facts
H. UPSC Prelims Practice Questions
I. UPSC Mains Practice Questions

A. GS 1 Related

Nothing here for today!!!

B. GS 2 Related

Category: POLITY AND GOVERNANCE

1. Reservation in promotion in public posts not a fundamental right: SC

Context:

Supreme Court Judgment.

Details:

• The SC reiterating its previous judgments has held that reservation in promotion in public posts cannot be claimed as a fundamental right.
• The court has stated that Articles 16 (4) and 16 (4-A) of the Constitution does not confer individuals with a fundamental right to claim reservation in promotion. It only empowers the State to make a reservation in matters of appointment and promotion in favour of the Scheduled Castes and the Scheduled Tribes, only if in the opinion of the State they are not adequately represented in the services of the State.
• The bench has held that State governments are not bound to make a reservation and have discretion in providing reservations. The judgment also noted that even the courts could not issue a mandamus directing the States to provide reservation.

Category: INTERNATIONAL RELATIONS

1. ‘Keep agri, dairy products out of trade deal with U.S.’

Context:

Ongoing India-U.S. trade negotiations.

Background:

• Farmers groups have previously successfully protested the agricultural and dairy, free trade provisions of the Regional Comprehensive Economic Partnership (RCEP) leading to India pulling out of the RCEP talks.
• There is now the demand to ensure that agricultural products stay out of the ongoing Indo-U.S. trade negotiations as well.

Details:

• With, the possibility of U.S. President’s visit to India in February 2020, there is a renewed focus on negotiations.

The U.S. demands:

• American negotiators are pushing hard for the removal of tariff and non-tariff barriers to facilitate access to the Indian market for major crops including corn, cotton, soybean, wheat and nuts.
• The U.S. is also keen on reaching a deal to open up the Indian dairy market.
• The U.S. has been pushing for amendments to the Indian intellectual property laws, which do not allow for patents on seeds or plants. This would benefit the likes of Monsanto Company, an American agrochemical and agricultural biotechnology corporation.

Indian Concerns:

• Cotton farmers could also be especially threatened by an adverse deal, given that Cotton farming is already in crisis. If U.S. cotton farmers enter India, they can afford to sell at very low prices and undercut the domestic farmer.
• Since most of the U.S. cotton, soy, and corn is genetically modified and India is yet to allow any GM food crop to be grown locally, the import of genetically modified crops is also a concern about bio-safety for India.
• Indian farm lobbies worry that the opening up of the Indian dairy market to U.S. goods could have a disastrous impact on domestic farmers, already struggling to get remunerative prices for their produce.
• Given the fact that American dairy farmers receive heavy subsidies, the opening up of the Indian market will create an uneven playing field. Since 15 crore livestock farmers, who are mostly small and marginal farmers, depend on dairy for their livelihood would be severely affected.
• There are cultural aspects also at play given that the U.S. cattle feed often includes non-vegetarian elements.

Way forward:

• The government needs to show the same political will that was displayed during the RCEP talks and continue to stand firm for the interests of small and marginal farmers.

2. Modi flags Tamil concerns to Mahinda

Context:

Sri Lankan Prime Minister’s official visit to India.

Details:

Sri Lanka’s concerns:

• Sri Lanka wants India to allow debt repayments by Colombo to be deferred for three years, in order to help the country deal with its massive debt burden. SL needs to service approximately $60 billion total foreign and domestic debt, with about $4.8 billion to be paid in 2020.
• Sri Lanka has asked for better utilization of the $400 million Line of Credit extended by India.
• SL has also requested further financing from India. It has called for increased Indian investments in SL in the form of joint projects and also trilateral ventures along with Japan.

India’s concerns:

• India has also raised the issue of post-LTTE war reconciliation with Sri Lanka’s Tamil population.
• India has called for the recognition of Tamil people’s right for equality, justice, peace, and respect within a united Sri Lanka. It has called for the process of reconciliation with the implementation of the 13th Amendment to the Constitution of Sri Lanka.
• The 13th amendment prescribes the devolution of powers to the Tamil minority north and eastern provinces.

Bilateral concerns:

• India and Sri Lanka have called for enhanced security cooperation, technical assistance, and intelligence sharing, especially after the ISIS-inspired Easter Sunday terror attacks in SL.
• There is a proposal to re-operationalize a security cooperation trilateral arrangement between India, Sri Lanka and the Maldives.

C. GS 3 Related

Category: SCIENCE AND TECHNOLOGY

1. West Bengal growing arsenic-resistant rice

Context:

Development and commercialization of rice resistant to arsenic.

Background:

Arsenic poisoning:

• Arsenic is a naturally occurring trace element found in rocks, soils, and water.
• World Health Organization’s provisional guideline value for arsenic in drinking water is 0.01 mg/l (10 μg/l). The permissible limit of arsenic in India in the absence of an alternative source is 0.05 mg/l (50 μg/l).
• Absorption of arsenic through the skin is minimal and thus hand-washing, bathing, laundry, etc. with water containing arsenic do not pose human health risks. According to the World Health Organization, long-term exposure to arsenic occurs mainly through drinking water and food.
• Arsenic beyond permissible levels has been recognized as a toxic element and is considered a human health hazard.
  • Long-term intake of arsenic-contaminated water leads to arsenic poisoning or arsenicosis, with cancer of skin, bladder, kidney or lung or diseases of the skin (colour changes, and hard patches on palms and soles), or blood vessels of legs and feet.
  • Fresh evidence indicates a possible association between the intake of contaminated water to the onset of diabetes, hypertension and reproductive disorders.

Affected areas:

• West Bengal has a high concentration of arsenic in groundwater, with 83 blocks across seven districts having higher arsenic levels than permissible limits.
• Apart from West Bengal, Arsenic contamination in groundwater has been recorded in the states of Assam, Bihar, Chhattisgarh, Haryana, Jharkhand, Karnataka, Punjab and Uttar Pradesh. The occurrence of Arsenic in the states of Bihar, West Bengal and Uttar Pradesh is in alluvial formations but in the state of Chhattisgarh, it is in the volcanic rocks.
• According to government sources, about 239 million people across 153 districts in 21 states drink water that contains unacceptably high levels of arsenic, adding up to 19% of India’s population.
• The occurrence of Arsenic in groundwater is mainly in the aquifers up to 100 m depth. The deeper aquifers are free from Arsenic contamination.

Details:

• The new rice variety, Muktoshri, also called IET 21845 is resistant to arsenic.
• It was developed jointly by the Rice Research Station at Chinsurah, coming under West Bengal’s Agriculture Department and the National Botanical Research Institute, Lucknow.
• Post-development and multi-locational trials and validation across different seasons, the seeds have been made available for cultivation.
• Since numerous scientific studies have shown that arsenic from groundwater and the soil can enter the food chain through paddy, the development of arsenic resistant rice variety marks a significant development in addressing arsenic poisoning in India.
• During the trials, it was found that this variety absorbs a lesser amount of arsenic from soil and water than the other varieties of rice. The yields across the seasons have also found to be satisfactory. Additionally, the rice was also aromatic making it attractive even in areas where arsenic contamination is not a problem.

2. How bats harbour several harmful viruses without falling sick

Context:

Scientific study regarding bats immune system response to harmful viruses.

Background:

• Bats serve as natural hosts for numerous viruses including the Ebola virus, Nipah virus, coronaviruses such as severe acute respiratory syndrome (SARS) and the Middle East respiratory syndrome (MERS) and the 2019 novel coronavirus.
• Although the above viruses cause harm in humans, they do not have any harmful effects in bats, even when the viral load is extremely high in bats.
• Notably, compared with terrestrial mammals, bats have a longer lifespan.

Details:

• When pathogens infect humans, the immune system gets activated and a typical inflammatory response to fight the microbes is observed.
• While the controlled inflammatory response to fight infection helps keep humans healthy, it can contribute to the damage caused by infectious diseases, and also age-related diseases when the inflammatory response becomes excessive.
• The inflammatory response is dampened in bats immaterial of the variety of viruses that are present and the viral load. Bats are able to avoid excessive virus-induced inflammation.
• Scientific research into the response of the immune cell of bats, mice and humans to viruses, found that while inflammation was high in the case of humans and mice, it was significantly reduced in bats immune cells.
• The research found that the significantly reduced inflammation in bats was because activation of an important protein (NLRP3) that recognizes viral/bacterial infections was significantly dampened in bat immune cells. The reduced activation of the NLRP3 protein was due to impaired production of mRNA (transcript).

Category: ECONOMY

1. ‘Economy revival is around the corner’

Context:

Vedanta Resources Chairman’s views on the Indian Economy and the recent Union Budget.

Background:

• India’s economy is under pressure amid the slowdown.

Details:

Reducing tax litigation:

• The Union Budget’s focus on transparency and reducing tax litigation is a welcome move. The government’s willingness to settle tax disputes and create a conducive environment for business will give India a big push with regard to ease of doing business and making it a $5 trillion economy.

Disinvestment:

• The government’s thrust on disinvestment is a welcome move since allowing independence for the public sector companies and banks will increase their productivity.

Promoting entrepreneurship:

• The government’s recognition of the role of entrepreneurs in nation-building is laudable given that they would play a leading role not only in economic growth but also act as employment generators.
• The government’s move to create an ecosystem for sound business ideas to grow and the focus on transparency is a big boost for the younger generation.

Oil exploration:

• India has huge oil reserves. Despite the reserves, there is only one private-sector oil producer in India. There is a need for more private oil producers in India to cater to the large demand. A higher number of companies will help increase competition in this price-sensitive sector.
• The higher domestic production will also help India reduce its dependence on oil imports. Given the unstable west Asian region and the possibility of a major crisis in the Gulf, India is bound to be affected through the disruption of oil supply chains to India. It is important that India produces at least 50% of its oil requirements.
• The government should facilitate private sector participation by bringing in a regime of self-certification wherein companies can start off with exploration activities once they get the environmental clearance. It is important that explorers and producers get the international price for their output to ensure the economic viability of the companies.

2. Utilise shift in orders from virus-hit China, textile exporters urged

Context:

Opportunities for the Indian textile business to expand by catering to the demand in the international markets.

Background:

• Businesses in China have been affected due to the outbreak of coronavirus. China may take 3-4 more months to return to normalcy. China is a major exporter of textiles and the global supply chains of Textiles have been disrupted due to the coronavirus outbreak.
• As a result, Indian exporters are getting enquiries from importers in different countries.

 Details:

• Higher orders for apparel and ready-made exports from India are expected.
• There are growing calls that the Indian textile and clothing sector should seize the available opportunity in global trade. Indian textile and clothing exporters should be aggressive and tap overseas orders that will shift from China.

India’s Strength:

• Bangladesh although have a healthy garment exports business, their potential to expand further is limited as it is dependent on imported raw materials for the textile business.
• Notably, for Indian exporters, the entire textile value chain is available domestically, allowing it to rapidly expand and capture the market opening.

Union Budget Provisions:

• The recent Union Budget has abolished the anti-dumping duty on Purified terephthalic acid (PTA) imports. It is a raw material used in the production of polyester staple fibre and filaments.
• With the removal of the anti-dumping duty, the raw material for the production of MMF (man-made fibre) will be available at the international prices now.
• PTA is a critical input for textile fibres and yarns, and its easy availability at competitive prices is desirable to unlock immense potential in the textile sector, which is a significant employment generator. It will help reduce the production cost and enhance the global competitiveness of Indian businesses and boost exports.
• The move will encourage around 20-25% of textile mills to switch over to synthetic yarn production from cotton. At present, cotton yarn production in India is higher than synthetic yarn. This will boost the entire man-made fibre textiles and clothing segment.
• Owing to its properties such as weathering resistance, strength, and flexibility, PTA’s usage is growing across various end-use industries such as food and beverages, electronics, apparel, home textiles, carpets, and industrial fibre.
• According to industry officials, this move will help further the ministry of textiles’ vision to increase the textile business size from the current level of around $169 billion to $350 billion by 2025 and to $650 billion by 2030.

D. GS 4 Related

Nothing here for today!!!

E. Editorials

Category: ECONOMY

1. LIC stake sale

Context

• Union Minister of Finance announced that the government plans to sell a part of its holding in Life Insurance Corporation (LIC) by way of an Initial Public Offering (IPO).
• The government owns 100 per cent of LIC.

Establishment

• The Life Insurance Corporation of India was established by the Parliament by passing the Life Insurance Corporation Act in 1956.
• The objective was to spread life insurance much more widely and in particular to the rural areas with a view to reach all insurable persons in the country, providing them adequate financial cover at a reasonable cost.

Why did the Govt initiate this?

• The Govt believes that listing would bring discipline while giving retail investors an opportunity to participate in wealth creation.
• Listing of companies provides access to financial markets and unlocks its value.

To bring this into action the Govt will have to ensure that it amends the LIC Act

• LIC is currently under the supervisory oversight of the Insurance Regulatory Development Authority of India (IRDAI), but it is governed by the LIC Act of 1956 which enables the state-owned insurer to obtain a special dispensation in several areas including higher stakes in companies beyond the limit set by the IRDAI.
• Under Section 37 of the LIC Act, the government has guaranteed the sum assured with bonus in all LIC policies to ensure the availability of financial security to the family of the deceased.
• LIC Chairman M.R. Kumar however has confirmed that: “There is no implication for policyholders. The Finance Minister has clarified that sovereign guarantee will continue. That being the case I don’t think there is anything to worry for the customer.”
  • Sovereign guarantee means that the sum assured in your policy, including bonuses, shall be guaranteed by the government.
  • This means it’s a surety or an undertaking from the government that it will pay you the assured sum (including bonus) on your policy.

The Finance Ministry is in talks with the Law Ministry to amend the Act.

Will listing change LIC’s operational approach or investment policies?

• LIC is the biggest institutional investor in the Indian equity markets. According to media reports, LIC’s gross investments in equity are set to touch an all-time high of ₹72,000 crore in the financial year 2019-20.
• In FY19, LIC had invested a little less than ₹69,000 crore in equities. The numbers clearly show the clout that LIC enjoys in the equity market. The government has used LIC on many occasions to stabilise the markets.

 Example

• The offer for sale of Oil and Natural Gas Corporation Limited (ONGC) was initiated by Govt in 2012
• LIC was allotted 4.41 per cent stake in ONGC, part of the 5% sold by the government through the auction route.
• With the acquisition of 4.41 per cent, LIC’s stake in ONGC has gone up to 9.48 per cent
• As per the Insurance regulator IRDA guidelines, an insurance firm’s holding should not exceed 10 per cent in any company.

Questions were raised in the market at the time about its investment policies, as this was a classic example of an LIC bailout.

Merits

• The listing would usher in benefits including increased accountability, transparency and due process.
• Listing of LIC will bring in greater governance and unlock more value for the life insurer, which could in turn benefit policyholders.
  • Listing a company will lead to its service standards going up.
• There would be independent directors on board who could question the rationale for investments.
• Further, shareholders too could question the company on its investments.
  • The government then cannot use LIC as a bank for acquisitions like IDBI, IL&FS, etc.
  • It will stop adverse investment decisions because once listed, SEBI and IRDA will have to be convinced.
• Market observers are also of the opinion that listing LIC will give it more marketing muscle and make it competitive, which will mean that private players will now have to invest more and bring out more innovative products.

Concerns

• LIC employee unions say that listing LIC will adversely affect policyholders.
  • They believe that for a company performing so well, there is no need for disinvestment, just because the government needs money.
• Once LIC is listed, there will be more ‘owners’ of the company in the form of shareholders, which will mean that a portion of profits will have to go to them as well.
  • It may reduce the bonuses that policyholders currently receive.

Could listing change the payout structure at LIC?

• Currently, LIC pays 5% of its surplus to the government and the balance 95% to policyholders.
• This makes it possible for the state-owned insurance company to give a higher bonus on the policies compared to private players, who typically give 10% of their surplus to shareholders and the balance 90% to policyholders.
• With outside investors becoming shareholders, with a few even gaining seats on the insurer’s board, there could be a demand to tweak the mix between shareholders and policyholders.
• Further, the norms of the Securities and Exchange Board of India (SEBI) on corporate governance would require the insurance company to make timely and quick disclosures about defaults among other things.
• LIC is a significant player in the debt segment as well and would have to make additional disclosures to retail shareholders.

Does LIC have bad loans?

• The banks are currently reeling under the pressure because of bad loans, there is intense speculation on LIC’s Non-Performing Assets (NPAs) too.
• Media reports have speculated that LIC has about 6% gross NPAs.
• But the chairman of LIC, clarified that on an overall basis, it was not even 1%.
  • The 6% is possibly in corporate debt.

Category: HEALTH

1. What is the debate around RO water?

Background

Click Here to read.

What is the quality of water globally?

Countries with a high development index tend to have good quality tap water.

• Finland, Denmark, Switzerland, Germany, United Kingdom have access to freshwater lakes or glacier melt — extremely clean and mineral rich. This water is further filtered.
• Singapore and Israel rely on extensive recycling and even making sewage water fit for drinking.
• The limited population pressure, compared to India, as well as public resources allow these countries to ensure clean drinking water.
• But for much of the world, access to clean piped water from the public supply remains a challenge.

2. A window into novel coronavirus transmission

To read about the article: Click Here

F. Tidbits

1. Fireflies under threat

• Research has shown that some of the 2,000-plus firefly species face extinction threats.
• The major hazards include habitat loss and excessive use of pesticides in agriculture and night lighting affecting the mating behaviour of fireflies.

2. Jagan opens Disha police station

• Andhra Pradesh is preparing to equip itself with facilities like forensic laboratories, special courts, and public prosecutors to effectively implement the Disha Bill 2019 by June 2020. The State government is fully geared to implement the Bill once it gets the nod of the President.
• The Disha law is designed in such a way that it awards capital punishment for the convict in a rape case if the evidence is established during the 14-day trial. The State ensures a fair investigation within seven days in the Disha cases.
• Forensic laboratories would aid speedy investigation of the Disha cases. Special courts will aid faster adjudication and reduce pendency. The first Disha police station was inaugurated recently.
• The establishment of the Disha police station and other initiatives will help ensure security for women.

3. Women Army officers criticise Centre’s note

• Serving women officers in the Army have condemned the Centre’s written note in the Supreme Court, which said they were physically weaker than men and not suitable for command appointments.
• The government tried to justify its argument by putting forth reasons of national security, operational effectiveness, battlefield scenario and capture by enemy, etc.
• The women officers have termed the note as being misconceived and based on misleading and erroneous basis rather than those based on demonstrated record and experience.
• Squadron Leader Minty Agarwal, a Fighter Controller with the Indian Air Force, was part of the team that guided Wing Commander Abhinandan Varthaman during the 2019 Balakot airstrike carried out by the IAF. In August 2019, she was awarded the Yudh Seva Medal by the President of India, becoming the first woman to receive it.

4. China turns to Artificial Intelligence, big data

• Coronavirus has infected more than 34,000 people and killed more than 700 in China.
• Beijing is looking to use data tracking and artificial intelligence to find and prevent potential infections.
• Several Chinese tech firms have developed apps to help people check if they have taken the same flight or train as confirmed virus patients, using data from lists published by state media.

5. Coronavirus death toll in China rises to 722

• The death toll from the novel coronavirus outbreak has increased to 722 in China. The total death count is closing in on the 774 killed worldwide during the 2002-03 SARS epidemic.
• Nearly 35,000 people have been infected globally with the new strain, which is believed to have emerged in a market selling wild animals in Wuhan.

G. Prelims Facts

Nothing here for today!!!

H. UPSC Prelims Practice Questions

Q1. Which of the following statements are correct?

1. Thiruvalluvar commonly known as Valluvar, was a celebrated Tamil poet- saint and philosopher.
2. Thiruvalluvar is the author of Thirukkuṛaḷ, a collection of couplets on ethics, political and economic matters.

Options:

a. 1 only
b. 2 only
c. Both 1 and 2
d. Neither 1 nor 2

Q2. With reference to Lok Adalats, consider the following statements:

1. An award made by a Lok Adalat is deemed to be a decree of a civil court and no appeal can be made against it before any court.
2. It has statutory backing through the Legal Services Authorities Act, 1987.
3. It is in line with the constitutional mandate of Article 39-A of the Constitution of India.
4. Code of Civil Procedure and Indian Evidence Act are applicable to the proceedings of Lok Adalat.

Which of the following statements are wrong?

a. 2 and 3
b. 1 and 3
c. 2 and 4
d. 4 only

Q3. Which of the following statements are correct?

1. The International Nitrogen Initiative (INI) was set up in 2003 under sponsorship of the Scientific Committee on Problems of the Environment (SCOPE) and the International Geosphere-Biosphere Program (IGBP).
2. The key aims of INI are to optimize nitrogen’s beneficial role in sustainable food production and minimize nitrogen’s negative effects on human health and environment resulting from food and energy production.

Options:

a. 1 only
b. 2 only
c. Both 1 and 2
d. Neither 1 nor 2

Q4. Which of the following statements are correct?

1. Cotton is offered Minimum Support Price in India.
2. India is the largest producer of cotton in the world.
3. India is the  largest  exporter of cotton in the world.

Options:

a. 1,2,3
b. 1 and 2
c. 1 and 3
d. 2 and 3

I. UPSC Mains Practice Questions

1. In the backdrop of government’s intention to sell a part of its stake in Life Insurance Corporation, discuss the associated concerns and challenges. Analyze the benefits of disinvestment as a mode for mobilization of resources for the government. (10 marks, 150 words)
2. Discuss the importance of the textile sector for India. Analyze the major challenges facing the textile sector in India. (10 marks, 150 words)

January 9th, 2020 CNA:- Download PDF Here

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