Current Affairs: Economic Survey – Part 1
Hello students! Welcome to BYJU’s classes! In this session we’ll be seeing Economic Survey. I hope most of you are aware that you’ll definitely get few questions from Economic Survey and it is one of the most important topic for both prelims and mains. Actually you have to get questions in last year prelims also from Economic Survey but as the budget and Economic Survey came in June, the main budget and Economic Survey came in June, you get very less questions from Economic Survey last year. But this year as the budget has come early and you have a lot of new things coming up in the budget, so Economic Survey this year is much more important than the previous years. Last year Economic Survey was helpfully in your mains. You see lot of questions in economy usually from Economic Survey only. Specially the question on agricultural produce marketing corporation and all. But, this year both in prelims and main we can expect more questions from Economic Survey. The reason being, there has been change in the government and also there has been shift in the policy change of the government. If you see traditionally, what exactly do we notice? Till from independence till today if you actually observe you’ll actually see that almost all the polices of the governments throughout were in the socialist sense, i.e. we used to tax rich and distribute it to the poor. Now you have a government which is actually thinking quite differently from the previous governments. There are some new economic terminologies which are coming to the forefront. Today, we are in a globalized era and in globalized era we need to get money from outside. There are several issues which are in front of government and government is taking these issues consciously and they are trying to address them. The economic policies of the previous governments and the economic policy of this government is completely different in most areas. If you take the case of subsidies, the Economic Survey completely argues that there is no point in giving subsidies at all. So when you have such type of variation in the thinking of the government. When, I’ll be going in detail and see how the government is visualizing the subsidies which are given in the present format. They want to go for direct benefit transfer rather than giving subsidies to the producers who used to benefit till today. So there is change in the mindset. Whenever there is such huge change in the thinking then usually lot of questions is expected from that particular area. So Economic Survey for you is very important. I know it’s almost 300 pages, you have two volumes to be read. At this point of time it would be very difficult. Most of you would already have read the Economic Survey. So what I would suggest you in this session is that I am not going to give you the gist of the entire Economic Survey. Wherever explanation is required, wherever new terms are there, if the terms is deviating from the earlier Economic Surveys and if you see any new terminology which is going to be a game changer in this present year, then those words I am going to focus. As you are all aware economy has two types of questions basically. One is factual and the second is conceptual. So the factual portion whenever you see, they are usually from traditional definition based. That is, what is open market operations? How is it associated? Like you know in prelims you usually see definition based questions. Second you usually get concept based questions. When I say concept based questions, if you take national income, what are all included in national income? So these kind of questions are traditionally asked in prelims especially from economy point of view. But when you go for mains, it is much more understanding rather than the traditional factual based questions. So Economic Survey when we’re doing, we are not only focusing only from prelims point of view. I’ll be showing you both from prelims and mains point of view. Volume 1 and Volume 2, this time the Economic Survey is different from the previous year’s because earlier Economic Survey used to come in only one volume, now you have Economic Survey in two volumes. And Volume 1 I would say is most important for your mains, Volume 2 is much more important for prelims. But there are some areas which are overlapping for both prelims and mains. So I’ll be showing you those particular areas. What I want you to do before I start the class is please have the Economic Survey book with you, whether it is in the pdf format or you have a printout, please have it with you. I will be telling you the page numbers and I’ll be showing which paragraphs are important. Wherever explanation is required I’ll explain you the concept if it is there or if you have already read in your traditional economy book I would not go in detail because if I start explaining each and every basic definitions of economy which is present in the book then definitely it will take not less than 10 to 12 hours and I have to go through entire economy. I don’t want to waste much of your time. I want to help you to revise the economy better. Economic Survey, if the terms are clear, your economy is also clear. So what we’ll be doing in the session is with your book I am just going to help you to mark those lines from where you get questions and at the same time what I’ll do wherever the concepts need bit more explanation, I’ll tell and I’ll also explain what type of questions can come. So, please keep two blank sheets with you. On one you can write it as prelims and on the other one you can write it as mains. And in prelims you try to write down the points or page numbers wherever I am telling you may get a question from this particular page. And from mains you try to mark it as mains so that once your prelims is over and when you are doing economy revision if you can go through Economic Survey not less than 2 to 3 questions you may expect from this book. So, let’s begin with Economic Survey.
So Volume 1, if you see the preface page, third paragraph, inspired by IMF’s World Economic Outlook. This itself was a question in 2014. World Economic Outlook was released by whom? IMF, World Bank and all. People got confused and most of them wrote wrong as well. So Economic Survey this year is inspired from IMF World Economic Outlook. World Economic Outlook also releases its survey in two parts, Volume 1 and Volume 2. IMF has also released it in two parts. And if you see, there can be a question in prelims. You might have read entire Economic Survey but they may ask you some basic questions. Like, what is the broad theme of the Economic Survey? So for such question, what is the broad theme of the survey? Creating opportunity and reducing vulnerability. UPSE had asked last year questions like, like you know what is the title of twelfth 5-year plan? What is the motto of twelfth 5-year plan? You should be careful in observing questions, how it has come and what is the title or broad theme of Economic Survey? If the question was what is a broad theme, then it is creating opportunity and reducing vulnerability. Why this is important, the government is moving ahead with its economic policy on the basis of this. When I say creating more employment opportunities, giving more and more scope for investment, business and employment to come forward. At the same time reducing vulnerability means whenever there is growth usually inequality increases. So government is trying to take conscious efforts to ensure that the vulnerability is reduced. So this is the broad theme of Economic Survey. A question maybe expected and please be prepared from this. This can be prelims based question.
So next please open page number 3. In page number 3, left side, second paragraph if you see. Second paragraph, 4th line you can see macro-vulnerability index. Right? Macro-vulnerability index. I have told in Make in India session, earlier session of Make in India that the terms macro-vulnerability index and Rational Investor Rating Index is important. The reason is what is macro-vulnerability index and what is the significance of that? You might have observed that the Prime Minister is visiting a lot of countries, right, to get FDI into India. When I say FDI has to come into India, people will invest in India only when they get good returns. No one is interested to go and invest in a country if they do not get good returns. Who will tell whether you get good returns from a particular country or not? Recently in the newspapers also you would’ve read that if in the profitability index if you invest in India, India gives you more profits than any other country. So what are these? Why these have become important? Till now our focus was not on appeasing these indicators which are given by World Bank, IMF and other bodies. But now we are much more focused on appeasing these because based on this itself we get much more investment into India. I am not going into detail about what is FDI and FII but I want you to understand when will investors be interested in investing in India. So one such indicator which helps most of the investors to invest in India is macro-vulnerability index. So a question maybe expected in prelims – how do you calculate macro-vulnerability index? Or they may ask you what is macro-vulnerability index. So please be prepared on that. What exactly is macro-vulnerability index? This is an index which show the vulnerability of a country. So here it takes 3 important factors. One is inflation, second is your fiscal deficit, third is your current account deficit. They take inflation, fiscal deficit and current account deficit. So you may get a question, what is current account deficit, what is fiscal deficit, what is inflation – the different types of inflation and all. But now if we see macro-vulnerability index what exactly it explains is that let us take a scenario of fiscal deficit. What is fiscal deficit? What exactly is fiscal deficit? What government actually earns and how much it is spending. Whenever spending is more fiscal deficit actually increases. See when government’s spends more money, usually the money goes into the hands of people and people will be having more money with them. When people have more money obviously inflation also increases, right? People have more money, inflation increases. When inflation increases products of India, i.e. whichever is manufactured in India or the goods of India becomes costlier and the goods from other countries become cheaper. So what happens most of the goods from outside India start coming into India, i.e. imports increases suddenly and exports will decline because our products would become costlier outside. So due to this cycle current account deficit also increases. So fiscal deficit led to inflation, inflation led to current account deficit. So these 3 factors indicate the vulnerability. The reason being when imports are more and exports are less, your forex reserves reduces. Whenever your forex reserves reduces some scenarios like Greek crisis that is happening. Like you know whenever you have Greek crisis, European Union is the largest trading partner, especially when we see India’s exports going, European Union is the largest importer of Indian goods. So what usually happens, Indian exports reduces. There is quantitative easing program of United States. So if it happens then most of the money which is invested in India may go back. Due to this forex reserves will become shortage and India may go back to an era of 1991 when we faced similar problem of forex reserves. So when this is the scenario that we are actually facing due to current account deficit and these three indicators, most of the countries actually say that whenever country’s macro-vulnerability index, i.e. inflation, fiscal deficit and current account deficit is in a good position then only you can invest in that country. If you see 2013-2014, current account deficit was high. You can see elections were won on the basis of this itself. So when you see inflation, current account deficit and fiscal deficit were high, macro-vulnerability index was also at lower. So what happened? India was given less rating, that India is not a good place to go and invest. At that point of time the government struggled a lot but still more number of investments did not come due to the negativity which had prevailed. But in 2015, if you see, inflation has reduced, fiscal deficit in the recent budget has reduced, current account deficit has reduced, and the reason is imports of oil, even though it is more but still the bill is less because oil prices globally have reduced. Fiscal deficit government has tried to reduce its spending, so fiscal deficit has reduced and inflation is under control by RBI and other measures. So when these 3 has happened, India’s macro-vulnerability index has reduced and we are in a better position today. That is, India ranking has improved. At this point of time the government is actually saying that please don’t go only with the macro-vulnerability index. Remember if Indian government had told don’t say macro-vulnerability index earlier people wouldn’t have listened because these 3 indicators were in bad shape. But today what government is telling us please don’t look only at the macro-vulnerability index. If an investor has to invest in a particular country he will look not just on these three indicators, but he will also look at Rational Investor Rating Index. If you see the same page, right side 2nd paragraph you can see a term Rational Investor Rating Index. So a question maybe asked in prelims about Rational Investor Rating Index. Guys, I am not explaining you the factors like FDI, FII, inflation and all because this will be covered in your traditional economy subject. But these terms is not specifically mentioned not just in the classes that you read, but also in the textbooks that you usually prefer. So I am taking extra efforts to ensure that all these terms are clear and if any question come in the exam you’re ready to face it. So what is Rational Investor Rating Index? If it is not there in any books then where you should we see the definition? It is there at the bottom of the page if you see RIRI is computed by averaging a countries’ GDP growth rate and its macro-economic indicators. What is macro-economic indicators? Measured as the average of fiscal deficit, current account deficit and inflation all with negative signs. What is exactly they are telling, growth minus, in brackets, fiscal deficit + current account deficit + inflation. When you average these two together then you get RIRI. Earlier macro-vulnerability index used to consider only fiscal deficit, current account deficit and inflation. Now you are having RIRI in a different context. So this is important and you may get a question from this topic.
Now see page number 17. In page number 17, you can actually see a paragraph on the right side, the last paragraph. A larger issue on the external front is geo-strategic. This topic can be a question in mains. What is the topic actually discussing? This is actually telling why do you want to have more forex reserves with you. So what is the benefit of having more forex reserves? This can be your mains question. So the question can be India’s forex reserves are increasing. What is the geo-strategic significance of increasing foreign exchange reserves? For this we need to compare India’s forex reserves with China. How China is utilizing its forex reserves. I’ll show you what should be the answer written for this. If power used to flow from barrel of a gun in an increasingly interdependent economic world, hard and soft power derived from a war chest of foreign exchange reserves, foreign exchange reserves. China’s abundant reserves have highlighted this fact. So this is important. Whenever the question is why do you need more forex reserves you should actually compare what China has actually done with its forex reserves? Or you may get a question, China’s forex reserves has actually helped it to strengthen its geo-strategic position vis-à-vis India, comment. Then also you should write such answers. The answer should start here. Reserves provide a cushion against shocks, creating economic and financial resilience. Obviously, if you have more foreign exchange reserves if anything happens to Euro. Say, for example, India has huge foreign exchange reserves, suddenly European Union collapses and your exports come down. At that time even when you import oil and all you will be having enough forex reserves to repay them. If you cannot repay then you are in trouble. So forex reserves will give you economic and financial resilience. But they also create geo-political influence. So what is it? Today, China has de facto become one of the lenders of last resort to governments experiencing financial troubles. Earlier, IMF, if you take the case of Greek crisis today, you see European Union and IMF actually lending to Greece and they are the last resort but today it is China. China has lot of forex reserves and whenever any country goes bankrupt, it is China which actually gives money to it. So China has de facto become one of the last lenders to governments experiencing financial troubles. It has also become one of the bigger providers of development assistance, both bilaterally and plurilaterally. Bilaterally it goes and give one-on-one money that is required. Plurilaterally through BRICS, AIIB, even through IMF it is planning to give more money to the other countries. China, in its own heterodox and multiple ways is assuming the roles of both an IMF and a World Bank as a result of its reserves. Right? So it is doing function of both IMF and World Bank. China is replacing western hegemonic institutions as well. The acquisition of reserves is not costless because it requires a policy of mercantilism and consequential distortion of financial and exchange markets. But there is a cost benefit analysis that needs to be undertaken. So what actually it is arguing is whenever you want to become an organization like IMF and World Bank it will be with some cost. You need to take particular stance, you need to help particular people. You’ll lose some money, you’ll lose some credibility’s sometimes. With all these you should be capable of handling the economic scenario better. So the question for India is as a rising economic and political power is whether it too should consider on substantial addition to its reserves preferably its own reserves acquired through running cumulative current account surpluses possibly targeting a level of US 750 billion, or 1 trillion over the long run. So the question is, should India focus on maintaining current account surplus to a level of 750 billion to 1 trillion over the long run. Yes. The reason is to gain political significance and also to gain geo-strategic influence across the world. So if at all there is a question on is there a need for forex reserves then your answer for 100 words should be this. Even 100 to 125 words should be this. Because the Economic Survey is clearly indicating why you should have. You can mark it as mains based question and in the sheet you’re maintaining please write it in the mains paper that page 17-18 you may expect a question. In the same page at the bottom, you’ve a definition given. That is terms of trade. How is terms of trade calculated? As I have told you definition based question can usually come. Please see how term of trade is actually calculated. So the definition, index of price received for farm products divided by index of price paid for farm inputs, final consumption and capital investment. So, what is terms of trade? They may give you a question and you may be asked to identify out of four. This is prelims based question. You may get a question based on definition of terms of trade itself.
So, now open page number 35 you would see a box, that is, “Make in India” not by protecting but by eliminating negative protectionism. How should you go for “Make in India” See, if you produce anything within India you should produce it at such a cost that it is cheaper from other countries production, right? If India’s products are costlier and if Chinese products are cheaper, then usually Chinese products enter into India’s market easily. So, “Make in India” will be successful only when products which are made in India are much cheaper than the products which are produced in other countries even if it is coming into India, like you know if other products are coming into India we should ensure that Indian products are also of same rate as the foreign product. For example, if you get a pen from outside if the pen is Rs.12, Indian pen should also be of Rs11.50 to Rs12 or Rs12.50, not beyond that. You should not go to Rs15-16, right? Then only people will be interested in buying Indian pen. For example, if Indian pen is Rs.12 and if this pen is Rs.11.50, I will be interested to purchase either Indian pen or Chinese pen based on the quality. But if you make Indian pen of Rs.20 and Chinese pen of Rs.12 there will be more number of people who’ll be purchasing Chinese pen. So what actually they say is whenever you see such kind of situation usually countries go for protectionism. When I say protectionism, one way to do is in India, say a pen is manufactured at Rs.15 and in China if it manufactured at Rs.12 then put more tax on Chinese goods, say, make like you know 30% or 40% tax so that the product becomes Rs.15 or Rs.16 and Chinese pen becomes costlier in the Indian market. This is protectionism. But India cannot go for putting more taxes on Chinese products or any other countries’ products because under WTO we have accepted that we won’t put more taxes on the other countries’ goods. So given that particular scenario, without violating our commitments in WTO how do we try to overcome the problem of cheap products which will come into Indian market? For that, what this particular box actually argues is that don’t go for protectionism but remove negative protectionism. When I say negative protectionism, there are lot of indirect taxes which are actually imposed on Indian products. You’ve sales tax, you’ve service tax, like you know if I manufacture something there will be so many taxes, central sales tax, you’ve indirect taxes, sales, service, consumption, so many taxes are there. So when you put so many taxes, obviously the product which is manufactured in India will be costlier than the products which are actually manufactured outside. If you take the products which are coming from outside they do not undergo so many taxes which Indian products usually undergo. So what this actually argues is if you go for GST, goods and services tax, then you can actually eliminate most of these indirect taxes and put some indirect taxes on the products which are coming from outside as well. So this table I am not going to go in detail. I have explained you what it is actually arguing. For the question, “Make in India” will be successful if we eliminate negative protectionism rather than going for protectionism. It can be a statement and they may give you comment or elaborate and at that point of time the argument given in the box without going into examples if you can answer if is more than enough. You can write 100 to 125 words easily from this and please mark in your mains paper that page number 35 you will get a question in mains. So please try to revise it after prelims once.
Please open page number 37. In page number 37, left side, 3rd paragraph if you see. Second negotiations on mega-regional agreements have been seriously initiated. Trade integration within Asia and between Asia and the United States will advance significantly if and when Trans-Pacific Partnership is negotiated and ratified. Can you see this, Trans-Pacific Partnership? What is Trans-Pacific Partnership? There may be a question on this. Before we go into what is Trans-Pacific Partnership? What is the agreements that are happening and all? As you are aware that in GS, especially in International relations you have international organizations or regional organizations and all, and most of the questions were contemporary. So you should be ready to face any kind of questions. In Economic Survey, the terms Trans-Pacific Partnership and Regional Comprehensive Economic Partnership is used and there is a concept behind this. So I want you people to know what exactly it is. Because until and unless you understand this, what exactly the government is arguing is not clear. Because questions last year like how was NDB, New Development Bank of BRICS is different from AIIB, Asian Infrastructure Investment Bank of China. When these questions come, usually the question is not based upon the functioning but on the geo-strategic significance of these banks. At that point of time students who generally read newspapers don’t understand why they are comparing these two. So at that point of time please be prepared to face questions on TPP and RECP as well because with WTO failing you have lot of questions coming on this. So let me just explain what is TPP, RCEP, why it is important and all. So to begin with let me take two countries, India and Bhutan, right? India and Bhutan. Let us say that these two countries agreed to do trade on hundred products. Not just trade, so India and Bhutan agreed to do trade in 100 products. When I say trade it was for Free trade. That is, they agreed not to put any tax on 100 products which move between India and Bhutan. But at that point of time let’s think India welcomes Nepal. Like you know India asks Nepal to enter in the beginning itself when the deal is actually happening, India asks Nepal why don’t you come and become part of this project that we are going through. Nepal will tell fine, I am happy to be part of this but my only worry is I cannot do trade on 5 products that you have actually listed. Like you know, you have 100 products. I am unable to do trade on 5 products. I have to tax 5 products. If I don’t tax, my country will be in trouble. So, Nepal says that if I have to come then I am ready to do trade on 95 products. So, in the second case, India plus Bhutan plus Nepal agreed that we can do free trade agreement on 95 products. Bangladesh said if you people are going why don’t you call me also. So, India feels fine. Let me call Bangladesh. So then comes Bangladesh. So when Bangladesh actually comes, what does Bangladesh wants? Bangladesh says, see, we produce jute, India also produce jute. So, I cannot do trade on jute with India. Like you know, whenever Indian jute come to Bangladesh then we need to put tax else our domestic jute will be in trouble, right? So what happens? In this way, Bangladesh says I cannot do trade on 30 items which you have actually listed. So what happens? 30 – 30, then you usually get 65 products. So, India + Bangladesh + Nepal + Bhutan, together they agreed only on 65 products. Now, let us take, you invite Pakistan. Pakistan will tell I am interested to come but I will do trade only on 1 product with India. I cannot go for 65 products cheaper. What will happen? Will India, Bhutan, Nepal and Bangladesh be interested in inviting Pakistan? It may be India – Pakistan issue but you have free trade you want all these countries together. So what is the ideal scenario? I would actually prefer to go with India and Bhutan separately. If at all required I would prefer these 3, and if it forces me, because I want Chittagong Port, access to Chittagong Port. I want some trade to happen through Bangladesh as well so my northeast is connected. So I will agree on these 4. But I don’t want Pakistan to come at all because it is going to damage the entire agreement, isn’t it? If, the moral of this is, if I invite more number of people in the beginning itself and if I sit with these 5 people and if I start doing any agreement then it is possible only on 1 product. If I remove one, if 4 of us come together and solve then 65 products is possible. If I remove another one like-minded countries 95 products is possible. That is if you want to do any discussion in the beginning it is always better to start with like-minded people. Let me take a scenario where India and Bhutan went for free trade agreement on 100 products. Fine. It was a good project and it is a most successful one. Nepal wants to come. So when Nepal wants to come into this agreement, Nepal will tell I am not interested in 5. India and Bhutan will tell, then don’t come. If you want to have trade on 100 products then only come into the agreement, else don’t come. For example, you have BRICS. You have Shanghai Corporation Organization. I am using these term because you are seeing this in newspaper now. You’ve SAARC. If someone comes into SAARC newly now, you’ll tell these are our conditions. You agree on these conditions then only you enter, isn’t it? So here if a country comes later it is always beneficial. If it is already present in the table, it is very difficult. So as the number of countries increases the number of products you actually go for free trade reduce. So, why is it important for us? This is important because, why is this important for us? If you take the case of WTO, you’ve almost 192-95 countries present in WTO. So if 192-95 countries sit together, what usually happens? None of the agreement will be signed. So, from last 14 years, like you know Doha around, not even a single agreement is actually accepted. The reason is the more the number of countries more sops they actually want. If you see the recent agreement, WTO can be divided into 3 groups. One is your developed countries, second is developing countries and third is least developed countries. Least developed countries. So, if any agreement has to be signed, you have to satisfy all these 3. So, recently what happened, developed countries wanted trade facilitation agreement to be signed and developing and least developed countries agreed only on the condition that the food security act of India should not get any problem in WTO. There is agreement on agriculture which is completely other topic. So as per that India cannot store much food grains to distribute to its poor, so India should be able to store more and help more poor people. For that if developed countries agreed on food security act then India will agree on trade facilitation agreement. And then the least developed countries also wanted something so we told to least developed countries that the products whichever comes from least developed countries will be taxed very less so that they can actually export more. So when these three was actually agreed almost the agreement was about to sign after 14 years, like you know 14 years, first agreement was about to sign. But at that point of time you had change in government in India. Agreement whatever had happened had a clause that next 4 to 5 years we’ll address the issue of Food Security Act and let us sign Trade Facilitation Agreement today. But Narendra Modi government said that first you solve Food Security Agreement and then we are actually going for Trade Facilitation Agreement, because once Trade Facilitation Agreement is signed then the developed countries will not be interested in going for Food Security Act. At this point of time WTO was in a verge of collapsing. The reason being 14 years, not even a single agreement has been signed. When it was about to sign, at that point of time the Indian government has said no to it. This was seen negatively by most of the countries. They felt that like you know this is not fair. And right from 2005-6 onwards itself US had identified this peculiar problem. So what they did, they told that WTO no agreement is possible today. You cannot do anything in WTO, so what United States actually planned was United States actually went for Free Trade Agreement bilaterally with many countries, because if you go bilaterally it is easy for you to convince with the country, as I told you, India and Bhutan, 100 products. But India, Bhutan, Nepal 95 products only. So bilaterally they tried to go and tried to go for Free Trade Agreement on most of the products. That’s the reason you may get a question, are Free Trade Agreements against world trade bodies or if you take regional agreements are they against global organizations. The question is basically on the economic background which is being asked here. So what actually is happening, you had WTO, and it was in the verge of collapsing. At that point of time, what United States actually felt was it is very difficult for me to convince all 192 countries in WTO so let me call my like-minded friends who are actually present in the Pacific Ocean, i.e. trans-pacific partnership. Like-minded friends like Canada, US, Mexico, you have some Latin American countries, you have Australia, you have New Zealand and you have Japan, South Korea, isn’t it? All these are American friends. So what actually America did was let us first frame and agreement like India and Bhutan 100 products, all these group TPP together they will come for an agreement and then they will ask other countries to enter. So United States formed Trans-Pacific Partnership. In Trans-Pacific Partnership you do not have ASEAN countries or BRICS countries. BRICS and ASEAN is not there in Trans-Pacific Partnership. So when Trans-Pacific Partnership was actually propagated, so you may get a question on Trans-Pacific Partnership itself. Please see and study what exactly Trans-Pacific Partnership is, how many countries are there, when it was actually started and where was the first session actually held. So this can be a question for you. Then, you had ASEAN countries which came together and ASEAN they told that if US is going for Trans-Pacific Partnership let us go for other organization to counter this Trans-Pacific Partnership, i.e. Regional Comprehensive Economic Partnership. In Regional Comprehensive Economic Partnership, you have ASEAN plus three. There are three close friends of ASEAN, they are China, Japan and South Korea. With this you have another plus three. They are India, Australia and New Zealand. So these 16 countries together, ASEAN and plus three plus three, sixteen countries together formed Regional Comprehensive Economic Partnership, or talks is underway. Like you know, to form Regional Comprehensive Economic Partnership. But what the Economic Survey is arguing is TPP is always good because it has US, it will be having more trade related stuff and RCEP will be good but still if we can integrate into Trans-Pacific Partnership it is much better. So, you may get a question either on TPP or RCEP or a combination of these two. So please be prepared to see what exactly Trans-Pacific Partnership is and what exactly Regional Comprehensive Economic Partnership is. As WTO’s talks are not going anywhere, US has formed Trans-Pacific Partnership and ASEAN has formed RCEP. You also have Trans-Atlantic Trade and Investment Partnership. One, Trans-Pacific Partnership across Asia and US, and Trans-Atlantic Trade and Investment Partnership between most of European countries and United States. So these two are the new versions which America wants to propose to counter WTO. So to counter this ASEAN got RCEP. So India is part of TPP or India is part of RCEP, answer should be India is part of RCEP and India is not part of TPP. As I told you TPP does not has ASEAN and BRICS countries. So that was the major challenge of 40 pp to come forward. Now you may have certain modifications. Some countries might have been included. And recently what China did was China said rather than going for Trans-Pacific Partnership or Regional Comprehensive Economic Partnership let us go for Asia-Pacific economic cooperation itself. Like you know, TPP proposed by US, RCEP proposed by ASEAN, so China said why do you want to go for these two? Let’s go for Asia-Pacific Economic Cooperation itself. On the other hand, you have India which is actually claiming, because India is not part of Asia-Pacific, so India is actually arguing that don’t make it Asia-Pacific, make it Indo-Pacific Economic Partnership, so India is also included in this. So in this chapter you will be seeing only these things which are important from mains point of view. There are topics which are important from this chapter, but if you see this chapter is the summary of the book. So as I move forward to new chapters, I will try to tell you what exactly were important from this chapter which is there in the summary as well. So please don’t get confused that sir has actually told only few areas and he has explained only few areas. For example, if you see jam number trinity, if you see climate change negotiations, all these are important, but they are much more explained in further chapters. So the first introduction takes more time and in next two lectures we’ll be completing the entire Economic Survey because the explanation there reduces and we’ll be looking at specific facts from where you get questions in prelims. Thank you.