15 Mar 2018: UPSC Exam Comprehensive News Analysis

A. GS1 Related

Nothing here for today!!!

B. GS2 Related

• India stood committed to its resolve to become a ‘TB- Free country’ by 2025 as countries participating in the Delhi End TB Summit signed and adopted the Statement of Action at the end of the summit here.
• The Minister added that India would support member countries of WHO SEARO region in meeting their respective goals of becoming TB-free. The Statement of Action called for increasing budgetary and human resource allocations by governments and stakeholders to ensure that their national TB plans are fully funded and medical care for the disease is supplemented with social and financial protection in a holistic manner.
• It is an opportune moment for India to co-host the Delhi Summit, as the world galvanizes its efforts to end TB by 2030. India shall also set an example for other countries by freeing itself of tuberculosis by 2025.

C. GS3 Related

• The Cabinet approved the proposal by the Department of Fertilizers to continue the ongoing Urea Subsidy Scheme from 2017 to 2020.
• The estimated cost of this would be Rs. 1,64,935 crore, the government said. “The continuation of the urea subsidy scheme will ensure that adequate quantity of urea is made available to the farmers at statutory controlled price,” the government said in a release.
• The DBT mechanism would entail 100% of the payment going to fertiliser companies on the sale of fertilisers to farmers at subsidised rates.
• The continuation of the urea subsidy scheme will ensure that adequate quantity of urea is made available to the farmers at statutory controlled price.  Implementation of DBT in Fertilizer Sector will reduce diversion and plug the leakages.
• Department of Fertilizers is in process to roll out DBT in fertilizer sector nationwide. DBT would entail 100 % payment to fertilizer companies on sale of fertilizers to farmers at subsidized rates. Therefore, continuation of Urea Subsidy Scheme will facilitate the smooth implementation of DBT scheme in Fertilizer Sector.
• Urea Subsidy is a part of Central Sector Scheme of Department of Fertilizers with effect from 1st April, 2017 and is wholly financed by the Government of India through Budgetary Support.

• Government has streamlined tax breaks for start-ups and exempted foreign companies from having to quote a permanent account number (PAN).
• There are no significant changes, with the government deciding not to roll back any of the tax provisions, including the controversial levy of LTCG tax at the rate of 10% on the sale of listed shares.
• However, some minor relief has been given in terms of allowing indexation benefits for unlisted shares in certain tax-neutral transfers like inheritance, demergers and amalgamation. It will not be available on gains made from sale of listed securities
  • Indexation benefits allow the owner of shares to raise the cost of acquisition and consequently reduce capital gains. The indexation benefit—which takes into account the impact of inflation on acquisition cost—
  • Indexation is used to adjust the purchase price of a debt fund so as to reflect the effect of inflation on it. A higher purchase price means lesser profit, which effectively means lesser tax.

D. GS4 Related

E. Editorials

• The Delhi Agenda, which flexed off the International Solar Alliance (ISA) on March 11, is an energizing modification in global environmental diplomacy
• The agenda’s 62 signatories approved to upsurge the share of solar energy in their respective energy mix and the alliance plans to generate 1 TW of solar energy by 2030 which is more than three times the current installed solar capacity, globally
• The coalition will facilitate “joint research and development efforts” to reduce the cost of solar projects in member nations
• Many of the countries have poor technological capabilities that could come in the way of their leveraging the platform
• Even India, the club’s founder, has struggled to be competitive in manufacturing solar equipment like photovoltaics
• The country also requires technology to store solar energy when the sun is not shining
• Many of its energy-deficient African members want the club to become a facilitator of their electrification programmes
• For electricity-sufficient countries like Mauritius, membership of the alliance comes with an aspiration to transit to clean energy
• Mobilising finances will be another challenge as the alliance aims to pump in a trillion dollars into solar energy initiatives by 2030
• Balancing the needs and the vastly different capacities of its members would require the ISA to develop robust procedures
• The alliance should also make sure that it does not become the means to advance the climate change mitigation goals of a few of its members or is reduced to an avenue of bilateral exchanges
• Developed countries like Australia and France partnering emerging economies like India and Brazil and small island nations like Fiji, Seychelles and Mauritius could be a potential game-changer for the renewable energy market

• The White House is now considering punitive measures against China for its alleged theft of intellectual property
• This comes on the heels of an investigation by the US trade representative’s office
• The success of Japan’s automakers and South Korea’s electronics chaebol can be seen. Their governments for many years protected both. But

1. It slows innovation and productivity growth
2. It leads to inefficient capital allocation
3. It limits consumers’ options
4. It also promotes crony capitalism
5. Falling into the protectionist trap

• For India, it would be a mistake to fall into the protectionist trap
• China’s unique political and economic models make its policies inimitable
• Its economic heft has incentivized foreign companies to grin and bear it
• Any such attempt to throw up barriers would run the risk of being dangerously counterproductive
• With regulatory barriers and uncertainty, India would start looking considerably less attractive as an investment destination
• India’s information technology companies have been successful over the past few decades because of their openness to international trade and investment
• India must adopt a nuanced approach while the US and China slug it out
• Concerns such as user privacy should be addressed
• A taxonomy of data would be useful, with commercial and industrial data treated differently from private data
• At both the Central and state levels in India, governments could focus on Public sector research and development
• Creating the appropriate ecosystems for innovation will have a far larger payoff than withdrawing into the protectionism
• India has the chance to get in on the ground floor of the digital economy and it should take it

F. Prelims Fact

G. Practice Questions for UPSC Prelims Exam

Question 1. Consider the following statements about India-based Neutrino Observatory (INO):

1. It is to study fundamental particles called neutrinos.
2. The project involves the construction of an underground laboratory.

Which of the statements are correct?

1. 1 only
2. 2 only
3. Both 1 and 2
4. None of the above

See

H. UPSC Mains Practice Questions