12 Oct 2022: UPSC Exam Comprehensive News Analysis

CNA 12 Oct 2022:- Download PDF Here

TABLE OF CONTENTS

A. GS 1 Related
B. GS 2 Related
C. GS 3 Related
ECONOMY
1. IMF cuts India’s growth forecast to 6.8% this year
SCIENCE AND TECHNOLOGY
1. What are the allegations against Google by the NBDA?
D. GS 4 Related
E. Editorials
GOVERNANCE
1. Blaming technology for deaths by suicide is misguided
INDIAN ECONOMY
1. Urban consumers are still not confident enough
F. Prelims Facts
G. Tidbits
1. Three lakh and counting: RTI pleas pile up at information commissions across India
2. Non-traditional livelihoods skilling of girls included in Beti Padhao scheme
3. Technology is a tool for inclusion not exclusion, says Modi at UN Congress
H. UPSC Prelims Practice Questions
I. UPSC Mains Practice Questions

A. GS 1 Related

Nothing here for today!!!

B. GS 2 Related

Nothing here for today!!!

C. GS 3 Related

Category: ECONOMY

1. IMF cuts India’s growth forecast to 6.8% this year

Syllabus: Indian Economy and issues relating to growth and development 

Prelims: About International Monetary Fund (IMF)

Mains: IMF growth prospects for FY23 and the key reasons for the fall in the growth prospects

Context

The International Monetary Fund (IMF) reduced its FY23 growth forecast for India from 7.4% to 6.8%.

Details

Image Source: The Hindu

• As per reports, India recorded 8.7% growth in the fiscal year that ended on March 31, 2022. However, the growth prospects for the current FY have been trimmed by 0.6 percentage points as compared to IMF’s June 2022 forecast.
• The reduction in the growth rate is attributed to a weaker output in the second quarter and dull external demand.
• Further, the forecast for the next FY has been kept unchanged at 6.1%.
• Additionally, the IMF notes that the growth will slow down from 6.0% in 2021 to 3.2% in 2022 and 2.7% in 2023 for the world as a whole. 
  • This is mainly because of a contraction in the U.S. GDP during the first half of 2022, a Euro Area contraction in the second half, extended COVID-19 outbreaks in China and a property sector crisis.

International Monetary Fund (IMF)  The International Monetary Fund (IMF) was set up in 1944 at the United Nations Bretton Woods Conference following the Great Depression in the 1930s. IMF which started with 44 founding member countries has over 190 countries as its members now. India is a founder member of the IMF and the Union Finance Minister of India is the Ex Officio Governor on the IMF’s Board of Governors.  Headquarters: Washington D.C., U.S. The key objective of the IMF: To work towards achieving sustainable growth and prosperity for all of its 190 member countries by supporting economic policies that promote financial stability and monetary cooperation which are important to increase productivity, job creation, and economic well-being. The three missions of the IMF: Furthering international monetary cooperation Encouraging the expansion of trade and economic growth Discouraging policies that would harm prosperity The sources of funds for the IMF: Member quotas, credit arrangements, and bilateral borrowing agreements.

Reasons for the reduction in the growth prospects

High Inflation

• Inflation in the country has remained above the RBI’s targets and the IMF has projected 6.9% consumer price inflation in the current year and 5.1% in the next year.
• Further, the IMF estimates that the inflation in India will return to the inflation tolerance band only in FY 2023-24.

Tightening monetary conditions globally

• The growth rates of the three largest economies namely the United States, the Euro and China were forecasted to be 1.6%, 3.1% and 3.2% respectively for the current year and 1.0%, 0.5% and 4.4% respectively for the next year.
• Experts feel that the economic shocks this year will revive the economic wounds that were partially healed post-pandemic.
• According to the report, a monetary policy that aims to restore price stability is the key to mitigating the risks of a recession.
• Further, fiscal policy can also be used to adapt to a volatile environment by investing in human capital, supply chain diversification, digitization, and green energy.

Impact of the Russia-Ukraine war

• The energy crisis in Europe and the following geopolitical realignment of energy supplies due to the Russia-Ukraine war has had a broad and severe impact on the growth prospects.
• Experts feel that countries should look to extend fiscal support to the vulnerable through temporary transfers instead of focusing on price controls, subsidies and export bans.

Nut graf: According to the IMF, the whole world including India will witness an overall slowdown in the coming year because of the impact of the Russia-Ukraine war, tightening monetary conditions, high inflation rates and the lingering effects of the pandemic.

Category: SCIENCE AND TECHNOLOGY

1. What are the allegations against Google by the NBDA?

Syllabus: Awareness in the fields of IT

Mains: The role played by search engines and various allegations on Google by news outlets.

Context

Recently, the News Broadcasters and Digital Association (NBDA) approached the Competition Commission of India (CCI) against Google.

Details

• NBDA has alleged that the search-engine operator Google has deprived them of their justifiable revenue acquired from news dissemination on Google’s platforms.
• Similar complaints have been lodged against Google by the Indian Newspaper Society (INS) and the Digital News Publishers Association (DNPA) in the past.

The role played by search engines

• Traditionally, the newspaper industry in the country has relied heavily on a business model wherein advertising revenues constitute close to 67% of its total revenue.
• Similarly, with online proliferation, there is an increased dependence of news publishers on digital ad revenues and thus on tech-based firms.
• Search engines use their algorithms and internal quality vetting to determine the priority placing of news websites in search queries. Hence search engines play a crucial role in determining news consumption online as readers usually use the online web search instead of typing/searching for the URL of a specific news website.

Allegations on Google

• According to NBDA, Google’s search engine commands a 94% market share in the country and over 50% of the total traffic on news websites is routed through Google.
• Usually, a news website earns revenue by selling advertising spaces on its platform through ad exchanges, in addition, Google being a search engine also operates a platform that manages publisher’s sale of online ads and tools which are to be purchased to display advertising space.
  • As per Google, these revenues are utilised to operate a complex and evolving business like maintaining data centres, advancing technological investments, promoting innovations and increasing advertiser return on investment.
• However, various news publishers allege that Google has not compensated the news publishers for their contribution to Google’s platforms. 
  • As per Digital News Publishers Association (DNPA), they receive only 51% of the advertisement revenue from Google.
• News publishers also claim that Google has employed practices that boost its monopoly in the space.
  • Because of this dominance of Google in the space, publishers are compelled to integrate content on their platforms as they have no other alternative. 
  • They are also forced to trade in the company’s exchanges and purchase its tools such as Google Ads/DV 360 to receive bids from advertisers.

Similar allegations on Google

• In February 2022, the European Publishers Council initiated an anti-trust complaint against Google with the European Commission challenging its “ad tech stranglehold” against news publishers. 
• Also, in Australia, the “Media Bargaining Code” was introduced in February 2021 to address similar issues. 
  • The code mandates news outlets to negotiate commercial deals individually or collectively with tech giants such as Facebook and Google with violations calling for civil penalties of up to $10 million. 
  • Further, tech firms are also required to provide news outlets with a notice whenever there is a change in search algorithms that may affect publishers’ content.

Nut graf: As there is an increase in the transition toward news consumption online, the role of search engines as the first port of call for information online has also increased significantly. In this context, it is important that the concerns of News Broadcasters are addressed and a level-playing field is created.

Category: INDIAN ECONOMY

1. Urban consumers are still not confident enough

Syllabus: Indian economy and issues relating to growth and development.

Mains: RBI survey analysis of the status of the Indian economy.

Context: Reports of various surveys conducted by RBI were released.

Details:

• According to various surveys conducted by the Reserve Bank of India, the percentage of urban consumers pessimistic about the Indian economy continued to decline in September 2022. This was due to the continued fall in the number of COVID-19 cases.
• However, the share of those pessimistic about the economy was still twice the share of optimistic ones, thus, highlighting the road to recovery is long.

Findings of the survey:

• The survey was conducted in nineteen major cities of India between September 1 and 10.
• Approximately, 59.2% of people were of the view that the economic situation worsened in September 2022. Though it was the lowest share since the COVID-19 outbreak, it was still more than double the share of those who held the view that the economic situation improved. Around 26.2% of respondents feel that it has improved.
• Nearly 54% of the participants were pessimistic about the employment situation. The proportion has remained stagnant since May 2022, thus highlighting the muted recovery on the employment front. 
• Similarly, the percentage of urban consumers distraught about their income levels also remained stagnant since May 2022.
• Nearly 95% of the respondents said the price levels of the commodities had risen. This can be attributed to the high retail inflation in India, thereby reflecting lower consumer confidence.

Figure 1: Consumer confidence survey in 19 cities between 1 to 10 September 2022

Image Source: The Hindu

Other Findings:

• The survey was also conducted for 734 manufacturing companies for the period of April to June 2022. It showed that the new orders received by these companies registered a growth in the last four quarters.
• As per the lending survey, all the sectors led by the retail segment marked an increase in loan demand in July-September 2022 period.
• In the services and infrastructure sectors, the survey captured the data for nearly 590 companies for the July-September 2022 period. The companies were asked to comment on the status of their turnover. The following figure (Figure 2) plots the net response. A positive number points to a higher share of companies recording an increase in turnover and a negative number points to the opposite.
  • Nearly 51.2% of service sector companies reported an increase in turnover.
  • 40.3% of companies reported no change.
  • 8.5% reported a decrease in turnover.
  • The net response was +42.7% points, which is higher than the pre-pandemic level.
  • Infrastructure firms also reported a positive outcome.

Figure 2: Net response of service and infrastructure sector

Image Source: The Hindu

Also read: UPSC Exam Comprehensive News Analysis. Sep 13th, 2022

Nut Graf: Various surveys conducted by the Reserve Bank of India show that the manufacturing, service, and infrastructure sectors are on the path to recovery. However, a grim picture was also presented in consumer confidence which requires redressal for improvement of the overall economic situation.

F. Prelims Facts

Nothing here for today!!!

G. Tidbits

1. Three lakh and counting: RTI pleas pile up at information commissions across India

Image source: The Hindu

• 17 years after the introduction of the Right to Information (RTI) Act, close to 3.15 lakh complaints and appeals are still pending with 26 information commissions across India as per a report by Satark Nagrik Sangathan.
  • The highest number of pending cases was seen in Maharashtra, followed by Uttar Pradesh, Karnataka, the Central Information Commission (CIC) and Bihar.
• According to the RTI Act, the information commissions are the final appellate authorities and are entrusted to protect and facilitate people’s right to information.
  • However, an analysis of penalties imposed indicates that the commissions have failed to impose penalties in 95% of the cases where penalties should have been imposed.
• As per the report:
  • Two information commissions in Jharkhand and Tripura out of 29 across India have been completely defunct for over 29 months and 15 months respectively. 
  • Currently, the information commissions in Manipur, Telangana, West Bengal and Andhra Pradesh are without chiefs. 
  • Also merely 5% of the total positions in the commissions are being occupied by women and many information commissions, including the CIC, are working with reduced capacity.
• The report also notes that there is a large backlog of cases built up in several commissions which has led to a long waiting time for disposal, as governments have failed to make appointments on time.

2. Non-traditional livelihoods skilling of girls included in Beti Padhao scheme

• The Union Government has widened the mandate of the Beti Bachao Beti Padhao scheme by including the skilling of girls in non-traditional livelihood (NTL) options.
• The scheme will now also focus on increasing the enrolment of girls in secondary education, particularly in STEM (Science, Technology, Engineering, Mathematics) subjects.
• A Memorandum of Understanding (MoU) was signed between the Ministries of Women and Child Development, Skill Development and Entrepreneurship, and Minority Affairs to help women improve their skills, enter the workforce in a diverse range of professions and pursue vocations of their choice.
• Further, a national committee under the leadership of the Secretary of the Ministry of Women and Child Development is made the apex committee to review and monitor the implementation of the scheme.

Read more about – Women in STEM

3. Technology is a tool for inclusion not exclusion, says Modi at UN Congress

• Prime Minister of India at the inaugural function of the second United Nations World Geospatial Information Congress (UNWGIC) in Hyderabad said that technology is a tool for inclusion and not exclusion.
• The PM also spoke about the role played by the SWAMITVA scheme in using geospatial technology to drive inclusion and progress.
• India’s geospatial economy is projected to cross ₹63,100 crores by 2025 at a growth rate of 12.8% and the geospatial technology has become one of the key enablers in socio-economic development by improving productivity, ensuring sustainable planning of infrastructure, effective administration, and helping the farm sector.
• The PM also spoke about the South Asia satellite and its relevance in facilitating connection and communication in India’s neighbourhood.

H. UPSC Prelims Practice Questions

Q1. Consider the following statements: (Level – Medium)

1. The Election Symbols (Reservation and Allotment) Order, 1968 empowers the EC to recognize political parties and allot symbols.
2. Bahujan Samaj Party and Asom Gana Parishad have ‘Elephant’ as their party symbol.
3. Where the party is either vertically divided or it is not possible to say with certainty which group has a majority, the EC may freeze the party’s symbol and allow the groups to register themselves with new names or add prefixes or suffixes to the party’s existing names.

Choose the correct code:

1. 1 & 2 only
2. 2 & 3 only
3. 1 & 3 only
4. All of the above

CHECK ANSWERS:-

Answer: d

Explanation:

• Statement 1 is correct, The Election Symbols (Reservation and Allotment) Order, 1968 empowers the EC to recognise political parties and allot symbols.
  • As per the provisions of the order, EC can decide disputes among rival groups or sections of a recognised political party staking claim to its name and symbol.
• Statement 2 is correct, Both Bahujan Samaj Party, as well as Asom Gana Parishad, have ‘Elephant’ as their party symbol.
  • The Bahujan Samaj Party cannot use its Elephant symbol in Assam, since the regional Asom Gana Parishad was allocated the Elephant symbol much before the BSP got recognised as a national party.
• Statement 3 is correct, Where the party is either vertically divided or it is not possible to say with certainty which group has a majority, the EC may freeze the party’s symbol and allow the groups to register themselves with new names or add prefixes or suffixes to the party’s existing names.

Q2. Under which of the following circumstances does the concept of ‘5+1’ collegium arise 
in the Supreme Court of India? (Level – Medium)

1. When a potential CJI candidate is not a part of the 5-member collegium
2. If the CJI feels the need to expand the collegium
3. If it is instructed by the President of India
4. Never

CHECK ANSWERS:-

Answer: a

Explanation:

• The Supreme Court collegium is headed by the CJI and comprises four other senior-most judges of the court.
• This collegium makes recommendations to the government for the appointment of judges to the SC and of Chief Justices of High Courts, and the transfers of HC judges.
• Usually, one of the four senior-most Judges of the Supreme Court would succeed the CJI, but if the situation should be such that the successor CJI is not one of the four senior-most Judges, he must invariably be made part of the collegium.
  • Hence a ‘5+1’ collegium arises when a potential CJI candidate is not a part of the 5-member collegium.

Q3. Consider the following statements with regard to Buddhism: (Level – Difficult)

1. While converting to Buddhism, Dr. B.R. Ambedkar, along with his thousands of followers recited 22 vows, which is now a part of the ritual.
2. In October 1935, Dr. Ambedkar, as president of the ‘Yeola Conversion Conference’ near Nasik, announced his decision to renounce Hinduism, as a path to contest the Hindu caste order.
3. Under the presence of monk Chandramani, Dr. Ambedkar and his wife took the Buddhist vows.

Choose the correct code:

1. 1 only
2. 2 & 3 only
3. 3 only
4. All of the above

CHECK ANSWERS:-

Answer: d

Explanation:

• Statement 1 is correct, Dr. B.R. Ambedkar while converting to Buddhism on October 15, 1956, at Deeksha Bhoomi in Nagpur along with his followers recited the 22 vows, which is now a part of the ritual.
• Statement 2 is correct, On October 13, 1935, Dr. Ambedkar, as president of the ‘Yeola Conversion Conference’ near Nasik, announced his decision to renounce Hinduism, as a path to contest the Hindu caste order. 
• Statement 3 is correct, Under the presence of monk Chandramani, Dr. Ambedkar and his wife took the Buddhist vows. 
  • He then recited the three jewels (Trisharan), five precepts (Panchsheel), pronounced the self-crafted 22 vows for the assembled people and renounced Hinduism. 
  • The event is marked as the renaissance of Buddhism in India. 

Q4. Which of the following is famous for publishing the ‘World Economic Outlook’ 
report? (Level – Easy)

1. World Bank
2. IMF
3. World Economic Forum
4. New Development Bank

CHECK ANSWERS:-

Answer: b

Explanation:

• World Economic Outlook is a flagship report published by the International Monetary Fund (IMF).

Q5. What is Cas9 protein that is often mentioned in news? (Level – Easy) PYQ (2019)

1. Molecular scissors used in targeted gene editing
2. A biosensor used in the accurate detection of pathogens in patients
3. A gene that makes plants pest-resistant
4. A herbicidal substance synthesized in genetically modified crops

CHECK ANSWERS:-

Answer: a

Explanation:

• Cas9 (CRISPR associated protein 9) is a special protein which is regarded as a “genetic scissor” used in targeted gene editing under the CRISPR technology.
• The Cas9 protein is responsible for locating and cleaving target DNA, both in natural and in artificial CRISPR-Cas9 systems.

I. UPSC Mains Practice Questions

1. “Rising pendency in RTIs undercuts transparency and accountability in a democracy.” Analyze. (250 words, 15 marks) [GS-2, Polity & Governance]
2. “With regards to mental health and suicides, technology is a double-edged sword.” Elucidate. (150 words, 10 marks) [GS-2, Governance]

Read the previous CNA here.

CNA 12 Oct 2022:- Download PDF Here