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Tathagat Best institute for UPSC & MPPSC H-309, 3 rd Floor, Sundram Complex, Bhanwar Kuan, Indore (M.P.) Ph. : 0731-4002328 Contact : 84351-81328, 8839177961 www.tathagatias.com Page 1 Modi hits out at UPA for neglecting health PM inaugurates medical college in hometown Vadnagar Homecoming: Prime Minister Narendra Modi waves to the crowd during his visit to Vadnagar on Sunday. Vijay Soneji Prime Minister Narendra Modi on Sunday flayed the previous UPA regime for neglecting health care in the country. While inaugurating a new medical college and launching a new vaccination drive on his first visit to his hometown Vadnagar after becoming Prime Minister, Mr. Modi said his government has accorded top priority to the health care sector. During its entire 10 year term, the UPA had failed to bring a health policy, which was last formulated during the previous NDA regime headed by Atal Bihari Vajpayee, Mr. Modi said. ‘No empathy for people’ “The last health policy was announced during Atalji’s regime around 15 years back. After that, such a government assumed power which used to hate development. It did not have any empathy for the people,” Mr. Modi said, referring to the UPA government’s 2004-2014 tenure. “As a result, a new health policy was introduced after almost 15 years by our government,” he said. He added that the previous regime had not considered it necessary to increase seats in medical colleges in the country, which was facing a huge shortage of medical practitioners. “As a result, very few students could get into the medical field. Now, our government has taken up the task of opening a new medical college

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Modi hits out at UPA for neglecting health

PM inaugurates medical college in hometown Vadnagar

Homecoming: Prime Minister Narendra Modi waves to the crowd

during his visit to Vadnagar on Sunday. Vijay Soneji

Prime Minister Narendra Modi on Sunday flayed the previous UPA

regime for neglecting health care in the country. While inaugurating a

new medical college and launching a new vaccination drive on his first

visit to his hometown Vadnagar after becoming Prime Minister, Mr.

Modi said his government has accorded top priority to the health care

sector.

During its entire 10 year term, the UPA had failed to bring a health

policy, which was last formulated during the previous NDA regime

headed by Atal Bihari Vajpayee, Mr. Modi said.

‘No empathy for people’

“The last health policy was announced during Atalji’s regime around 15

years back. After that, such a government assumed power which used to

hate development. It did not have any empathy for the people,” Mr.

Modi said, referring to the UPA government’s 2004-2014 tenure. “As a

result, a new health policy was introduced after almost 15 years by our

government,” he said.

He added that the previous regime had not considered it necessary to

increase seats in medical colleges in the country, which was facing a

huge shortage of medical practitioners.

“As a result, very few students could get into the medical field. Now,

our government has taken up the task of opening a new medical college

Page 2: Modi hits out at UPA for neglecting health - tathagatias.comtathagatias.com/uploads/syllabus/59db293c1efc9_pdf.pdf.pdf · years back. After that, ... Modi said, referring to the UPA

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for every three to four parliamentary constituencies,” Mr. Modi said,

inaugurating a medical college set up by the Gujarat government in

Vadnagar.

Seats in PG courses

"Since we also need good professors and faculty members for new

colleges, we have also increased 6,000 seats in PG medical courses in

the last one year. Though some people criticised the move, we remained

firm because we understand that we will need good professors for

producing good doctors,” Mr. Modi added.

Besides opening new colleges, the Prime Minister said the government

has focussed on bringing down medical costs to make health care more

affordable.

“Earlier, the prices of stents were around ₹1.5 lakh to ₹2 lakh. Someone

would get a heart attack by just hearing such a high price. We decided to

reduce costs. So [we] called the manufacturers and asked them and

today, stents are available at just 40% of its original price of three years

ago.”

He added that similarly, the government has set up a chain of stores to

sell generic medicines at subsidised rates to bring down the price of

medicines.

Punjab government faces heat over stubble burning

Farmers have threatened to continue burning crop residue unless the

govt suitably compensates them

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BKU (Lakhowal) has decided to defy the ban and will not allow officials

to enter villages. File photo

Several farmers’ unions in Punjab are up in arms against the State

government over the issue of stringent action against farmers who burn

crop residue.

The main Opposition party in the State, the Aam Aadmi Party, has also

come out in support of the farmers, blaming the ruling Congress

government for failing to secure the farmers’ interest.

With harvesting of paddy in full swing, farmers have already started

burning crop residue as they prepare their farms for the upcoming rabi

crop.

Farmers have warned that they will continue to burn paddy stubble

unless the government suitably compensates them for the expenses

incurred on alternative methods of disposing of crop residue.

“The government should first come out with an alternative and then ask

us [farmers] to refrain from burning crop residue. We should be given a

bonus of ₹200 per quintal on paddy or paid ₹ 5,000 per acre in

connection with the ban on stubble burning,” Harinder Singh, general

secretary of the Bharti Kisan Union (Lakhowal), told The Hindu.

Mr. Singh said the BKU (Lakhowal) has decided to defy the ban and

will not allow officials to enter villages when farmers burn crop residue.

Govt cautioned

Leader of the Opposition in the State Assembly Sukhpal Khaira on

Sunday cautioned the State government against registering cases against

farmers for burning stubble.

“The State government has failed to arrange for equipment and

machinery required for ploughing the paddy straw back into the fields.

Until the government makes alternative arrangements, it should refrain

from taking action against farmers,” he said.

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Mr. Khaira claimed that the National Green Tribunal (NGT) while

issuing directions to stop stubble burning for a cleaner environment had

ordered the State government to provide equipment to farmers.

“Instead of providing equipment and machinery to farmers on a rental

basis, the Punjab government is penalising them by registering cases

against them,” he alleged.

Punjab Pollution Control Board chairman K.S. Pannu had expressed

hope that the problem of stubble burning in the State would be contained

to a considerable extent this season.

Penalty imposed

“Farmers are more aware now and we have been taking steps against

those who violate the ban. Till now, of the 300 cases of stubble burning

reported in the State, penalty has been imposed in 100 cases,” he said

Ex-SC judges could soon be appointed NHRC chief

The Home Ministry has moved the Cabinet to amend the recruitment

process of the National Human Rights Commission (NHRC).

A key change being contemplated is that a retired Supreme Court judge

could also be considered for the Chairperson’s position, currently

reserved for former Chief Justices of the Supreme Court.

Similarly an amendment for appointment of members is also being

considered. The members could be picked from a pool of retired Chief

Justices of High Courts. Currently, a serving or retired SC judge is

considered.

The NHRC was constituted under the Protection of Human Rights Act in

1993. The Act was last amended in 2006.

Wider pool

“The amendments are being done on the request of the NHRC itself.

Complying with international norms, some changes are being made in

the Act that will open the floor for recruitment from a wider pool,” said

a senior government official.

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The Commission consists of a chairperson, one member who is or has

been a Judge of the Supreme Court, one member who is or has been the

Chief Justice of a High Court and two members to be appointed from

among persons having knowledge of, or practical experience in, matters

relating to human rights.

16 balsam species found in 5 years in Arunachal

Discovery crucial as these varieties are facing a threat to their habitat

from fast-changing landscape of the region

Impatiens lohitensis

Impatiens paramjitiana

Impatiens rugosipetala

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Impatiens pathakiana

Impatiens zironiana

Impatiens walongensis

In August 2017, a research paper describing Impatiens walongensis, a

new species of balsam, was published in the peer-reviewed scientific

journal Phytotaxa.

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The species was discovered from Arunachal Pradesh’s Anjaw district,

one of India’s easternmost. About a meter tall with ovate elliptical

leaves and light pink flowers, the plant was named after Walong, the

locality where it was found. Impatiens walongensis is the latest but not

the only new discovery of balsam in Arunachal Pradesh.

In 2017 alone, scientists discovered and published their findings on five

other new species of balsam, taking the total number of balsam species

discovered this year to six.

Impatiens arunachalensis, which bears purple flowers and a pink throat,

was discovered from the Upper Siang district. Since only 50 plants of

the species were found at a particular location, scientists described the

conservation status of the plant as critically endangered.

Another species, Impatiens zironiana, with lanceolate pale yellow floral

buds flowering and fruiting in the rainy season from July to September,

was discovered from the Lower Subansiri district.

Two more species of balsam, Impatiens rugosipetala from the State’s

Lower Dibang valley, and Impatiens tatoensis from the West Siang

district, were also discovered and described earlier this year.

“Three new species of balsam were discovered from Arunachal Pradesh

in 2016, and five [were discovered] in 2015. Since 2013, at least 16 new

species of plants under the genus Impatiens, commonly referred to as

balsam, have been discovered from Arunachal Pradesh,” said Rajib

Gogoi, a scientist with the Botanical Survey of India (BSI), who has

been working on balsams in Arunachal Pradesh since 2012, told The

Hindu.

He said that botanists have found 55 species of balsam from the

northeastern State, 16 of which are new discoveries to science.

Soil requirement

Known for their starkly differing flower shapes, which are produced

along the stem with vivid colours like pink, red, white, purple and

yellow, balsams grow in rich moist soil. Across the world, about 1,000

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species of these angiosperms or closed seeded plants are known to

occur.

In India, about 210 balsam species were known till these new

discoveries from Arunachal Pradesh emerged. Now, the number of

balsam species has increased to 230.

“What makes the Impatiens interesting is the high endemism among

these plants. In most cases, while collecting the specimens, only a

handful of plants are spotted. Since these plants have a very small

habitat, they face a threat from the fast-changing landscape of the

region,” said Souravjyoti Borah, another botanist associated with these

discoveries.

Mr. Borah, who has been working with Mr. Gogoi on genus Impatiens,

pointed out that inaccessibility and the difficult terrain of the region

were among the reasons why it took so long for the new species to be

discovered.

The researchers also had to dissect and study their morphology in the

field itself.

Study on hybrids

Both botanists emphasise that balsams have immense horticultural

importance. Studies on hybrids of the plants have been undertaken in

parts of the country to produce flowers that can sustain in different

environmental conditions. Different hybrids can be created from wild

balsam species, so it is important to know the actual number of balsam

species in the wild, Mr. Borah said.

A revolutionary power to heal

Fifty years after Che’s death, the ideas that keep his legend alive

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Getty Images/iStockphoto digitalimagination/Getty Images/iStockphoto

On October 9, 1967, in southern Bolivia, near the barren and desolate

village of La Higuera, the Bolivian Army, under instructions from the

government of the U.S., trapped the isolated guerrilla column led by

Ernesto ‘Che’ Guevara. Che, a hero of the Cuban Revolution of 1959,

believed that Cuba, only 90 miles away from the mainland of the U.S.,

would remain vulnerable unless other revolutions succeeded in the

world. His reaction to the violent U.S. bombardment of Vietnam had

been similar, not enough to defend Vietnam, he had said, but it was

necessary ‘to create two, three, many Vietnams’. Failure to spark

revolution in Congo led Che to Bolivia, where its army trapped him. He

was eventually captured and brought to a schoolhouse. Mario Terán

Salazar, a soldier, was tasked with the assassination. Che looked at this

quivering man. “Calm down and take good aim,” he told him. “You’re

going to kill a man.” Che died on his feet.

From man, Ernesto Guevara (b.1928) became a myth. It is difficult not

to be moved by the life of this Argentinian doctor who became a

revolutionary.

Radicalised by reality

His tutelage in revolutionary thought came from his experiences among

the leprosy patients of Venezuela and the tin miners of Bolivia, among

the revolutionaries of Argentina and the 1954 coup in Guatemala.

Reality radicalised him. Only later would he recount that he had been

influenced by, as he put it, ‘the doctrine of San Carlos’, his sly reference

to Karl Marx.

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In 1953, in Mexico, Guevara met Hilda Gadea, a revolutionary from the

Peruvian APRA (American Popular Revolutionary Alliance). Gadea

schooled Guevara in Marxist theory and in the radical currents then

inflaming the region. They moved to Guatemala in September 1954,

which was then in the midst of a major struggle against the U.S.

government and U.S.-based corporations. A democratically elected

government led by Jacobo Árbenz attempted to conduct basic land

reforms, which ran afoul of the United Fruit Company. Guevara was

marked by the role of this corporation in governing Guatemala.

To his aunt Beatriz, he wrote, “I have had an opportunity to go through

the land owned by United Fruit, and this has once again convinced me of

the vileness of these capitalist octopuses. I have sworn before a portrait

of old, tearful Comrade Stalin not to rest until these capitalist octopuses

have become annihilated. I will better myself in Guatemala and become

a true revolutionary.”

When the U.S. initiated the coup against Arbenz’s government, Guevara

took to the streets. No good came of it. Guevara and Gadea fled to

Mexico. It was there that they, thanks to Gadea, met Raul Castro and

eventually his brother Fidel. Not long after, Guevara would board a

rickety boat, the Granma, with the Castros and 79 others to launch the

Cuban Revolution. When their boat arrived in Cuba, the military killed

70 of the revolutionaries. The survivors rushed inland, and with sheer

grit proceeded to build the peasant army that eventually overcame the

U.S.-backed dictator Fulgencio Batista at the close of 1959.

The young revolutionaries inherited a bankrupt country. Batista had

shifted $424 million of Cuban reserves to U.S. banks. Loans were not

forthcoming. In a late night meeting, Castro asked if there were an

economist among them. Che raised his hand. He became the head of the

economy. Later when Castro asked him about these credentials, Che

answered that he thought Castro had asked, “Who is a communist?” Che

took to his task with energy and determination. The U.S. had set an

embargo against the island in 1962. It suffocated Cuba. The Uruguayan

journalist Eduardo Galeano went to interview Che in 1964. “I don’t want

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every Cuban to wish he were a Rockefeller,” Guevara said. He wanted

to build socialism, a system that “purified people, moved them beyond

egoism, saved them from competition and greed”. It was a daunting task,

made difficult by the poverty of the treasury and of the population;

although the Cuban people’s spirit drove them to volunteer their labour

to build their resources.

The Cuba years

“Cuba will never be a showcase of socialism,” Guevara told Galeano,

“but rather a living example.” It was too poor to become paradise. It

could however exude love for its own people and for the world. For

Guevara, love was everything, key to his idea of socialism. In a letter to

his five children written en route to Bolivia, Guevara said, “Always be

able to feel deep within your being all the injustices committed against

anyone, anywhere in the world. This is the most beautiful quality a

revolutionary can have.”

The afterword

As for the fate of those who killed Guevara 50 years ago, Bolivian

dictator René Barrientos died a year later when his helicopter burst into

flames. General Joaquín Zenteno Anaya, who led the operation against

Che, was shot to death in the streets of Paris. Major Andrés Selich Chop,

who led the Rangers to capture Che, was killed by the dictatorship of

Hugo Banzer. Monika Ertl, a member of the National Liberation Army

of Bolivia, killed Colonel Roberto Quintanilla Perez, who had

announced Che’s death to the world, in Hamburg.

Mario Terán Salazar, the soldier who shot Che, went into hiding. Many

years later, in 2006, the Cuban government operated on Che’s killer to

remove a cataract from his eye without charge. Che’s legacy was not

revenge. It remains a doctor’s love for humanity.

Course correction

The GST Council does well to simplify the tax regime; it must sustain

this conciliatory stance

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Nearly 100 days after India’s tryst with the new Goods and Services Tax

regime began, the GST Council empowered to oversee its

implementation has approved several alterations. These relate to

coverage and compliance norms with a view to easing the burden of

paperwork and stretched cash flows imposed on smaller businesses and

exporters. The Council lowered the rates on 27 items, including dried

sliced mango, khakhra, unbranded namkeen and, more importantly, yarn

and sewing threads to soothe the textile industry that has been in distress

over GST norms and is a bulwark for job-creation. Prime Minister

Narendra Modi has said the Council’s decisions at its 22nd meeting,

taken at his behest to overcome the GST system’s apparent

shortcomings, are akin to an early Deepavali. That the meeting was

advanced by almost 20 days, and that it has tried to deliver on the Prime

Minister’s promise to fix the problems faced by traders in the first

quarter of GST is welcome. The decision to switch the requirement to

file three monthly returns and an annual return to a quarterly frequency

for firms with a turnover of ₹1.5 crore will ease the burden of

compliances on small and medium enterprises, and reduce the workload

on the tax regime’s fledgling IT backbone.

Equally critical is the expansion and proposed simplification of the

composition scheme, under which firms with an annual turnover of up to

₹1 crore pay a flat and low tax, and the six-month suspension of the

reverse charge mechanism that required large firms to deduct tax on

supplies from firms outside the GST net. This should spur fresh

confidence among small firms and help expand the tax base. The

promise of faster tax refunds, starting Tuesday, for exporters facing a

working capital crunch too is re-assuring. Time will tell how smoothly

these decisions pan out on the ground, but suspension for six months of

the payment of integrated GST (IGST) on inputs used for exports will

bring immediate relief. While putting off the e-way bill provisions

dealing with movement of goods that were making businesses and

transporters nervous, the Council is instead considering a staggered

introduction. So the system would begin with one or more States from

January 2018 and cover the entire country by April 2018. It is not clear

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how this will impact inter-State movement of goods in the interim three

months, and industry has good reason to worry about fresh

complications. Amidst this flurry of adjustments, suspense persists on

the operationalisation of the GST law’s anti-profiteering provisions,

which cramp pricing decisions by businesses. The government needs to

move swiftly to bring clarity on all such remaining grey areas. Lastly,

though some of the latest rate revisions may be based on impeccable

economic rationale, it is important to resist giving the impression that

some tweaks, even if they are warranted, are based on the Assembly

election schedules.

Navigating a changing world

A close relationship between the India and the EU will benefit both

Cementing bonds: “India and the EU should continue to welcome each

other’s leadership roles in the world, primarily because of commonly

shared values.” (L-R) European Council President Donald Tusk, Prime

Minister Narendra Modi, and European Commission President Jean-

Claude Juncker in New Delhi. AP

That the talks to negotiate the India-European Union trade pact, the

Broad-based Trade and Investment Agreement (BTIA), have not

progressed during the 14th India-EU Summit, held in New Delhi on

October 6, is, among other things, a sign that both sides continue to

recalibrate their bargaining power and understanding of their relative

positions on the international stage. Nevertheless, there are some

important positive outcomes of these interactions, which go beyond just

trade. The very fact that the two sides are talking and working together

in several areas is significant.

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Much has changed for the EU since the last summit held in Brussels in

2016: Brexit; several key elections, including in France and Germany;

and visible rifts between eastern and western European countries on

what core EU values are and should be. The inaugration of Donald

Trump as U.S. President and consequent retreat of America from its

leadership role in the West has provided a significant external stimulus

to the EU’s identity shift.

Interestingly, the EU leadership referred to India and the EU as being the

“world’s largest democracies” — a statement usually made with regard

to politically sovereign entities. The EU is a single market, the world’s

largest, but comprises 28 sovereign democratic countries, i.e., it is not

sovereign in itself (Britain has just driven home that point). This

projection as one of the world’s largest democracies, which happened at

the end of last year’s summit as well, is more notable this time in light of

the U.S.’s uncertain position on the international stage and the fact that

pro-EU leaders such as French President Emmanuel Macron have been

pushing for a stronger union in Europe as Britain leaves the EU.

Also notable is that India and the EU reaffirmed their commitment to a

“rules-based” international order and a “multipolar” world. This is

significant in the context of the U.S. moving towards reneging on

several international deals. Mr. Trump has said he is going to “decertify”

the nuclear deal with Iran — a deal that the EU is keen to uphold — and

his administration has given notice of intent to withdraw from the Paris

Accord. He has shown a willingness to walk away from the game if the

rules are not altered as per his taste. The reference to multipolarity is a

recognition that there is more than just one chair at the top table, not just

with the U.S.’s shifting position but also due to Russia and China’s

ascent.

The India-EU joint statement on terrorism this year called for “decisive

and concerted actions” against Hafiz Saeed, Dawood Ibrahim, Lashkar-

e-Taiba and other purveyors of terror; this will further bolster India’s

efforts to call out Pakistan on the issue of sponsoring terror. The EU

itself has been no stranger to terrorism these last few years and the two

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sides have agreed to enhance cooperation at multilateral and bilateral

interactions.

Talking of trade

The centrepiece of the recent summits, the BTIA, however continues to

be conspicuous by its absence. Among the reported causes for the failed

talks is a disagreement on whether the protection of foreign investments

will be part of the BTIA or dealt with in a stand-alone treaty. (India has

allowed tens of bilateral investment treaties to lapse, including those

with EU states, so it can bring these in line with a model treaty from

2015.)

Other sticky points in the negotiations have been India wanting a greater

ease of movement of temporary skilled workers to provide services in

the EU and the EU wanting greater market access for its automobiles

and its wines and spirits.

India is right to strike a hard bargain as far as the temporary movement

of skilled workers is concerned. The EU and other developed countries

have been historically reluctant about moving forward on this and the

issue has become more challenging with the rise of populism and

protectionism in Europe. Nevertheless, the liberalisation of services and

access to EU markets for those who deliver them go hand in hand with

the liberalisation of the goods market; wanting an open market for

automobiles and liquor but unduly restricting the movement of natural

persons seems to be a case of ‘have your cake and eat it too’ thinking. It

bears repeating that there are winners and losers from globalisation on

both sides of the border and it is up to governments to institute policies

to redistribute the gains from trade. All too often, the movement of

skilled workers from India to developed countries is made onerous with

barriers to overcome in terms of salary thresholds, recognition of

qualifications, visa fees, social security and so forth.

Another issue holding up the trade talks has been the EU not granting

“data secure” certification to India — a condition that facilitates the

cross-border transfer of personal data, key to a number of companies’

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services, especially in the IT industry. India does not have a stand-alone

data privacy law yet and the state recently went to great lengths to create

a false dichotomy between development and privacy during the right to

privacy hearings in the Supreme Court, including, by (unsuccessfully)

arguing that privacy was an elitist concern. On the other hand, the EU is,

commendably, at the forefront of protecting citizens’ rights as regards

what happens to their data online. It will be no easy task for the

government — whose approach to privacy can be described as casual at

best (one got the impression that the government’s equivocation on its

position on privacy, apparent during the conclusion of the hearings in

the case, were face-saving measures undertaken to resonate with the tide

of public opinion and then the Supreme Court ruling itself) — to align

its laws to a standard required by the EU to get the appropriate

certification. It would certainly be a shot in the arm for consumer rights

and privacy standards in the digital age if India were to adopt and

implement strict standards for handling data, an outcome desirable in

itself.

Taking a longer view

India and the EU should continue to welcome each other’s leadership

roles in the world, primarily because of commonly shared values. For

those who prefer to take a more expedient view of the situation, reasons

can perhaps be found in the fact that the EU is India’s largest trade

partner and it is also, like India, wary of China’s political (the summit

declaration makes a reference to freedom of navigation principles) and

economic dominance. The EU is concerned about China flooding global

markets with inexpensive steel and its response to China’s Belt and

Road Initiative has been lukewarm, but the strength of China’s

relationship with EU member states themselves is heterogeneous, with

China trying to make inroads into Eastern and Central Europe through

infrastructure investments. This makes it vital for India to cement its

bonds with the EU further.

With around €100 billion in bilateral goods and services trade last year,

India and the EU have a lot to gain from a trade deal. It’s not just about

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trade. It is far from clear what presence the EU will have in a decade’s

time as this is a matter that can only be settled internally by its

constituents. But the sands are shifting, both in Europe and the world,

and spaces and opportunities for leadership and partnership are opening

up. It will certainly pay for both India and the EU to keep each other

close as they feel their way around the emerging international order.

Resources aplenty, no jobs

Redefining economic models to get them in sync with the technology-

accelerated age is the need of the hour

We are in the midst of the most transformative age in human history

where technological leaps could make possible a world of limitless food,

water, and energy. Although we have attained the ability to produce any

resource at any speed or in any quantity, human capital requirement is

on a steep decline owing to the advent of cutting-edge technologies such

as artificial intelligence and robotics.

While five high-technology firms find themselves among the list of the

top seven most valuable companies in the world, with a cumulative

market capitalisation of almost $3 trillion, it is distressing to note that

that they employ just under 700,000 people among them. The inevitable

widespread adoption of next generation technologies indicates a future

of mass unemployment, and concentration of wealth in the hands of a

few enterprises capable of providing minuscule job openings.

Today’s primary challenge is the optimal allocation of copiously

produced resources among an increasing population with dwindling

wage-earning opportunities. Taking cue from these trends, several

progressive political outfits across Europe have started demanding

legislation favouring reduced working hours with no cuts in pay, three-

day weekends, and the introduction of a universal basic income.

Even if new models built around the reduction, sharing, and diffusion of

work and the provision of a supplementary income can sustain

employment levels and living standards in wealthy nations with a steady,

declining, or ageing population, with most of them plugged into the

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formal economy, it will be impractical in countries like India. The Indian

scenario already looks grim with the Labour Bureau stating that India

added just 1.35 lakh jobs in eight labour-intensive sectors in 2015,

against a backdrop of almost 1.5 crore annually entering the job market.

Conditions are ripe for the creation of a plenitude of frustrated people

who would be easy prey to the sway of radical nationalists and populists.

Nevertheless, the informal economy employs more than 90% of our

workforce. Efforts to structure the informal sector, by encouraging them

to adopt modern-day tools and best practices, and by giving them

adequate access to capital for expansion, would stimulate the economy

and the job market.

India has massive basic infrastructural capacity requirements. Focussed

government planning and spending, along with the creation of an

environment that would encourage private investments into these

potentially large-scale projects, could create immediate openings for

millions in sectors like construction, India’s second largest employer,

providing jobs for over 44 million. If leveraged to create essential and

permanent assets, employment-guaranteeing schemes like MGNREGA

would also effectively absorb a large slice of job seekers. Redefining the

existing economic planning, employment and resource-allocation

models, to get them in sync with this technology-accelerated age, is the

need of the hour.

Simultaneous polls feasible: EC

‘Apart from amendments to Constitution, all parties should come on

board’

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O.P. Rawat

Favouring simultaneous Lok Sabha and Assembly polls, the Election

Commission on Sunday said all political parties need to be brought on

board before such an exercise was carried out.

“The Election Commission has always been of the view that

simultaneous elections will give enough time to the incumbent

government to formulate policies and implement programmes

continuously for a longer time without interruptions caused by the

imposition of the model code of conduct,” Election Commissioner O.P.

Rawat said.

He said the step would be possible only when necessary changes were

carried out in the Constitution and the Representation of the People Act.

Existing legal and constitutional provisions mandate that elections are to

be held within six months ahead of the end of the term of an Assembly

or the Lok Sabha.

“The Commission may conduct such elections after six months [after

constitutional and legal changes are made],” he said. The Assembly

elections for Andhra Pradesh, Telangana and Odisha are due in mid-

2019, along with the next general polls.

Mr. Rawat said the Election Commission was in 2015 asked to give its

view on the synchronised polls. “The Commission gave its views on the

matter in March that year. It had suggested a few steps that need to be

taken before such elections are made feasible.”

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Mr. Rawat said it would be logistically possible to hold the elections

together if sufficient time was given to the Commission. Besides, it

needs 24 lakh each Electronic Voting Machines (EVMs) and Voter

Verifiable Paper Audit Trail (VVPAT) Machines.

“We need two sets of EVMs — one for the Lok Sabha and another for

the Assembly polls,” he said.

‘Orders placed for EVMs’

Mr. Rawat said orders had already been placed for more number of

EVMs and VVPAT machines and new inventory had started coming in.

“The Commission would be able to get the required number of EVMs

and VVPAT machines by mid 2019 or before if need be.”

Mr. Rawat’s assertion assumes significance as Prime Minister Narendra

Modi had already pitched for simultaneous polls.

Ready to scramble any time: IAF chief

Concerned over loss of lives during peacetime

Air Chief Marshal B.S. Dhanoa on Sunday voiced concern over the loss

of lives of Air Force personnel in peacetime.

“Despite the high intensity of our flying [sorties], we cannot afford to

have accidents and lose valuable lives and assets. Our losses in

peacetime are a cause for concern, and we are making efforts to prevent

accidents...,” he said, paying homage to the seven soldiers who were

killed when an Mi-17 V5 helicopter on an air-maintenance mission

crashed in Tawang last Friday.

At a function to mark the 85th Air Force Day at the Hindon Air Force

Station, he said the force was ready to fight at short notice, and fully

geared to meet any security challenge.

He said the Air Force was acquiring multi-spectrum strategic capabilities

and remained committed to building “jointmanship” with the Army and

the Navy.

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As for the measures to improve safety, he said state-of-the-art flight

simulators had been inducted for training. “To avoid bird strikes, we

have inducted microlight aircraft for bird surveys.”

He said that according to the preliminary assessment, the helicopter

crashed at Tawang after its tail-rotor disengaged. “The exact cause will

be known later. I will not speak more on the issue as a court of inquiry is

on.”

Stunning display

The IAF enthralled the audience with an interesting flypast. The

aerobatic team Surya Kiran performed at full strength with nine aircraft,

and the indigenous Netra Airborne Early Warning and Control System

mounted on an Embraer aircraft made its debut. The Surya Kiran team

did not fly for four years following a shortage of intermediate jet

trainers.

An interesting part of the Surya Kiran performance was the various

formations. A surprise formation was that of the SAAB Gripen which is

in the race for the single-engine aircraft tender along with F-16 of

Lockheed Martin.

China swears by 1890 treaty with Britain

Urges India to abide by the provisions of the agreement

China on Sunday referred to the 1890 U.K.-China treaty which it claims

demarcated the Sikkim sector of the India-China border as it urged New

Delhi to abide by its provisions, a day after Defence Minister Nirmala

Sitharaman made her maiden visit to the Nathu La post.

Reacting to Ms. Sitharaman’s visit, the Chinese Foreign Ministry said,

“The Sikkim section of the China-India border has been demarcated by

the historical boundary.”

‘Face the facts’

“It is the best testimony to this fact. We urge the Indian side to face the

facts, abide by the provisions of the historic boundary treaty and the

relevant agreement of the parties, and work together with the Chinese

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side to maintain peace and tranquillity in the border areas,” it said in a

written response to PTI.

The Ministry did not directly name the 1890 Britain-China treaty which

Beijing often referred to during the Doklam standoff stating that as it

had defined the Sikkim section of the boundary with Tibet, the border in

that area had been settled.

Ms. Sitharaman on Friday visited the Nathu La area, and interacted with

the Army and Indo-Tibetan Border Police officials. Nathu La is the last

post separating the border between Sikkim and Tibet.

Ms. Sitharaman’s trip was the first high-level visit to the area after the

73-day standoff at Dokalam which ended on August 28 following a

mutual agreement.

China reinforces mediation call as Rohingya crisis spirals

Beijing says it is willing to continue promoting peace talks in its own

way

Tough task: A man beats Rohingya children with a cane as things spiral

out of control during aid distribution at a camp in Cox's Bazar,

Bangladesh. getty Images

Without alienating Bangladesh, China is backing Myanmar, setting the

stage of mediation between the two countries to resolve the Rohingya

humanitarian and refugee crisis.

On September 28, China flew 2,000 tents and 3,000 blankets as part of a

150-tonnes relief package for Rohingya refugees, fleeing the violence in

Myanmar.

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The Chinese stressed that they had flown in the supplies purely on

humanitarian considerations to help Bangladesh shoulder the burden of

the sudden refugee surge. Politically, Beijing empathised with Myanmar,

which had become a target of harsh criticism from the West on the

familiar grounds of violating human rights and engaging in “ethnic

cleansing.”

“The Chinese side is highly concerned about the difficulty facing

Bangladesh in resettling the displaced people in the Myanmar-

Bangladesh border area. In order to help the government of Bangladesh

with the resettlement efforts, the Chinese government has decided to

provide emergency humanitarian supplies to the government of

Bangladesh,” said Chinese Foreign Ministry spokesperson Lu Kang

during a September 30 media briefing.

However, Beijing also ensured that Myanmar avoided harsh

international sanctions, which the United Nations could impose. During

the first debate in the UN Security Council on September 28, the

Chinese side defended Myanmar, highlighting the context of the

humanitarian crisis.

Myanmar’s Rakhine State is at the heart of the Rohingya crisis. On

August 25, the Arakan Rohingya Salivation Army (ARSA), operating in

the State, attacked 30 police posts, killing 84, with 54 going missing.

The massive retaliation by the Myanmar armed forces triggered an

exodus of 4,00,000 people, seeking sanctuaries in the Chittagong hill

tracts of neighbouring Bangladesh.

Strategically vital

Rakhine is strategically vital for both China and India. The website The

Irrawaddy from Myanmar has reported that Beijing has been pushing for

preferential access to the deep seaport of Kyaukphyu — part of its

ambitious infrastructure investment plan to deepen its links with

economies throughout Asia and beyond. China has plans to pitch in $10

billion in the neighbouring Kyaukphyu Special Economic Zone.

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Besides, it wants to establish a railway from the Bay of Bengal, linking

Myanmar with its Yunnan Province, within the framework of its Belt

and Road undertaking. India, on its part is developing the Sittwe port,

the capital of Rakhine province, for providing port access to its

landlocked northeast.

With the crisis escalating, China has reiterated its offer to mediate

between Myanmar and Bangladesh.

“China is willing to continue promoting peace talks in its own way, and

hopes the international community can play a constructive role to ease

the situation and promote dialogue,” China’s Foreign Minister Wang Yi

was quoted as saying.

Pakistan’s role

China’s offer to broker a resolution is not new. In April, Chinese Special

Envoy for Asian Affairs Sun Guoxiang visited Bangladesh and offered

to tackle a diplomatic row between Bangladesh and Myanmar over the

flight of the Rohingya.

Yet, China’s efforts may not succeed without active behind-the -scenes

support from Pakistan, another player that has been drawn into the

Rohingya entanglement.

Writing in the Asia Times, Bertil Lintner, a Myanmar specialist, points

out that ARSA’s leader, Ataullah abu Ammar Junjuni, also known as

Hafiz Tohar, was born in Karachi and received madrasa education in

Saudi Arabia. The group was earlier known as Harakah al-Yaqin, or “the

faith movement,” and only last year adopted its more ethnically oriented

name.

Mr. Lintner pointed out there were thousands of first, second and third

generation Rohingya living in Orangi, Korangi, Landhi and other

impoverished suburbs of Karachi. “The areas where they live are long-

time hotbeds of extremist activity, with some known to have been

recruited to fight in the wars in Afghanistan,” the article observed

Spanish PM may suspend Catalonia’s autonomy

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‘Any declaration of independence will lead to nothing’

Mariano Rajoy

Spanish Prime Minister Mariano Rajoy has refused to rule out

suspending Catalonia’s regional autonomy unless its leaders withdraw a

threatened declaration of independence as thousands rallied for national

unity.

“I don’t rule out anything,” Mr. Rajoy said in an interview with the daily

newspaper El Pais published on Sunday when asked about applying the

constitutional provision that allows the suspension of autonomy and the

imposition of direct rule from Madrid. “But I must do things at the

proper time... I would like the threat of an independence declaration to

be withdrawn as quickly as possible.”

Seeking to reassure Spaniards, he added: “The government will ensure

that any declaration of independence will lead to nothing.”

He also urged moderate Catalan nationalists to distance themselves from

the “radicals” in the separatist camp who are pushing hardest for an

independence move. He spoke after tens of thousands of demonstrators

rallied across Spain on on Saturday, calling for Spanish unity and

demanding action to resolve the volatile political crisis.

Rally in Barcelona

Meanwhile, hundreds of thousands of people rallied in downtown

Barcelona to protest against the plans of Catalonia’s regional

government to secede from the rest of Spain. The march was the largest

pro-union showing since the rise of separatist sentiment in the

prosperous northeastern region that has pushed Spain to the brink of a

national crisis.

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Barcelona police said 3,50,000 people participated, while march

organisers Societat Civil Catalana claimed that 9,30,000 people turned

out.

Six airports may take off via land-pooling

‘New model to help remove resistance from land owners’

Flight plan: The airports will come up in Tamil Nadu, West Bengal,

Maharashtra, Uttar Pradesh and Bihar.

The Union government is planning to build six airports under the public-

private partnership (PPP) model in Tamil Nadu, West Bengal,

Maharashtra, Uttar Pradesh and Bihar adopting a land-pooling model for

land acquisition.

The Centre proposes to develop a greenfield airport each in Chennai,

Kolkata, Bagdogra, Pune, Varanasi and Nalanda, Civil Aviation

Secretary R.N. Choubey told The Hindu. Separately, the Airports

Authority of India (AAI) will spend ₹18,000 crore in the next four years

for expanding its airports.

“We plan to adopt a ‘land-pooling’ approach at places where land is a

constraint,” said Mr. Choubey. “It will help remove a lot of obstacles

such as fund requirement and resistance from land owners. This model

has so far not been adopted in the airport segment,” he said.

Under the model, land owned by different people is pooled together and

the owners get back a certain portion of the land in the developed area

whose value is much higher than the value of the original land holding.

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The AAI has hired the Centre for Environmental Planning and

Technology for studying this model.

The Civil Aviation Secretary said the State governments of Tamil Nadu,

West Bengal, Maharashtra, Uttar Pradesh and Bihar have been asked to

identity land for development of airports under this model. “We have

asked the States to identify minimum 2,500 acres of land. We will then

conduct a technical feasibility of the site,” Mr. Choubey said.

Talks with States

He said the Centre had already held two rounds of meetings with the

Tamil Nadu Government for identifying land for developing a second

airport for Chennai. The West Bengal Government has informed the

Centre that Andal Airport in Durgapur can be developed as the second

airport for Kolkata, Mr. Choubey said.

According to sources, the Centre has done a detailed analysis of top 30

airports in a bid to increase the airport capacity in the country. “We are

looking at three areas — increasing the efficiency of existing terminals,

building new terminals and the need to build new airports,” an official

said.

Minister of State for Civil Aviation Jayant Sinha had said last year that

the Centre will require funds up to ₹3 lakh crore for doubling the airport

capacity over the next 10 to 15 years. According to an internal analysis

by the Civil Aviation Ministry, there is a potential for flight operations at

200 airports in the next 10-15 years.

Mr. PM: it’s time for bold economic thinking

The chief of the government would do well to take a leaf out of

Narasimha Rao’s book and show statesmanship

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The Indian economy is currently in a paradoxical situation. The world

has been praising India for its rapid economic growth, inflation is down,

forex reserves are more than $400 billion, fiscal deficit is on target and

current account deficit until recently has been less than 1% of GDP and

comfortably financed by capital inflows.

India’s oil imports in FY13 was $164 billion and by FY17 it was only

$83 billion, thereby lowering the current account deficit as a percentage

of GDP from 4.8% in FY13 to just 1.1% in FY17. The lucky

government has also had two straight years of good monsoons.

However, both the supporters and detractors of the present government

have described the state of the economy as ‘sinking’ and as being ‘in a

tailspin’, etc.

The stock market is at an all-time high in anticipation of a surge in

earnings which is yet to materialise. The newly appointed head of the

NITI Aayog, Rajiv Kumar, has been refreshingly honest in admitting

that lack of investment and anaemic job creation are significant

challenges for this government.

The RBI, in its latest monetary policy report, lowered the projected

growth rate for FY18 from 7.3% to 6.7% and, more importantly,

reserved its opinion as to whether the marked consecutive dip in growth

rates for the last two quarters was a blip or not. So, what’s going on?

Politically, the government is on the defensive. But, it has so far

refrained from taking hasty and populist spending decisions.

‘Production possibility’

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Going by the hefty anecdotal evidence available, both the

demonetisation episode of 2016 and the introduction of GST in July

have imposed short-term costs in the form of lowering of growth rate in

the current fiscal.

But it must be told in the same breath that the culture as well as the

regime for direct and indirect tax compliance in India is undergoing a

fundamental shift for the better in a way that has not happened before.

This is certainly going to expand the ‘production possibility frontier’ of

the economy. However, there is uncertainty on how fast this is going to

happen. A lot will depend on follow-up policy actions on the part of the

government. The equity market seems to bet the recent downward

growth rate trend is just a blip.

‘Eroded confidence’

Our diagnosis is, the lack of speedy resolution of the stress in PSU banks

and corporate balance sheets has eroded business confidence leading to

lower investment and poor job creation. The government announcement

of a stimulus package may deal with the problem cosmetically rather

than address it at its root. The current government has shown limited

appetite for serious financial sector reform.

It has been long on rhetoric such as ‘Indra Dhanush’ and has evinced

little resolve to deal with the massive non-performing loans problem.

The recent RBI move to refer large stressed accounts to the National

Company Law Tribunal so that they could be dealt with under the

Insolvency and Bankruptcy Code will likely lead to two consequences:

One, the resolution will take a very long time, and two, recoveries will

be much lower than what would have been possible by way of one-time

payments that could have been negotiated with delinquent borrowers for

full and final settlement of dues.

The aim to ring-fence boards and executive of PSU banks from probes

by the three Cs, CBI, CVC and CAG, will impose a cost on the economy

by delaying resolution of distressed loans and causing more losses to

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PSU banks. A decisive break from the shackles and shibboleths of the

past is needed in respect of PSU bank policies.

The high savings in India are currently not directed to productive, long-

term investments as corporates have still not been able to repair their

balance sheets.

Further, that intangible thing called “confidence”, be it consumer or

business, has been faltering. In fact, the Dun and Bradstreet composite

CFO Optimism Index which takes into account the overall financial and

macroeconomic conditions has declined to a five-quarter low, slipping to

11% on an annual basis and by 5.7% on a sequential basis.

The AC Nielsen Consumer confidence index for India in Q2 2017 was

128, declining 7 percentage points compared with Q42016, while global

consumer confidence rose 3 percentage points during this time interval.

Despite the fall, Indian consumers are still the second most optimistic

among the 63 countries surveyed by AC Nielsen.

The table captures the real interest in India (calculated as the difference

between the yield on the 90-day Treasury Bill and consumer price

inflation) which is currently hovering around 4%. Against the backdrop

of a perceptible decline in the investment rate in the recent quarters and

given such high real rates, it would be irrational to expect investment to

pick up in an environment where earnings growth has also been elusive.

What needs to be done now to get India back on the high growth track?

We recommend a five-step plan:

Five-step plan

First, demonetiation was politically successful but an economic failure.

We can use the current crisis to introduce an amnesty scheme, a la

Indonesia, to allow tax payers to voluntarily disclose hitherto

undisclosed income kept domestically and abroad. Indonesia — a nation

of 250 million people, with 32 million registered tax payers but only 8.9

million actual tax payers — had close to 1 million people disclose $365

billion (40% of GDP) of undisclosed income this year, the bulk of which

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was held domestically and a portion abroad, notably $55.5 billion in

Singapore.

The Indian government should announce a one-time programme valid

till December 31, by when anyone can disclose previously undisclosed

income held within the country and abroad, for which they will pay a

small, one-time fine of 4%, while 50% of the domestic holdings (100%

of foreign cash/ near cash holdings) will need to be invested in two large

government funds — one for infrastructure and the other for bank

recapitalisation.

The amounts thus invested will be locked for seven years with a

compound interest of 4% per annum. Post redemption, the amounts and

the interest thereon can be used freely for any lawful purposes in India.

While scheme will be generous, come January 1, criminal prosecution

should be instituted against Indian residents holding large sums of

undisclosed income. This government has built some credibility to

pursue cases of high-profile corruption. By highlighting the automatic

exchange of financial account data with nations such as Singapore and

Switzerland, it can ensure that the scheme is taken seriously.

The work done so far by the SIT on money stashed abroad and the

information obtained through Panama leaks could be a good input to test

and start the scheme. After all, this government had made the bringing

back of black money kept abroad as one of its core election promises.

Now it needs to walk the talk.

Second, ensure that the full extent of the NPA problem is recognised

latest by December 31 and that banks make necessary provisions in this

regard. The consequent shortfall in equity capital adequacy for PSU

banks should be met through recapitalisation by March 31.

The boards of PSU banks should be recast by bringing in persons with

demonstrated professional experience and achievement. The selection of

CEOs of PSU banks and determination of their tenure and compensation

package should henceforth be the exclusive domain of their boards.

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Boards should be fully empowered decide on loan resolution by way of

real restructuring, with or without haircut, and one-time payment. All

cases of suspected wrongdoing involving collusion between borrowers

and banks in loan resolution should be screened and vetted first by a

high-level committee of former bankers drawn from public and private

sectors before being taken up by the 3 Cs. Clear guidelines should be

established for such screening and vetting.

Third, accelerate infrastructure investments, especially in agricultural

storage/ support infrastructure, in post-harvest processing, water

efficiency technologies, extension services etc. to make agriculture more

productive.

Fourth, facilitate new export engines — ‘Make in India’ and ‘Serve in

India’ — with emphasis on defense exports and medical tourism. An

ambitious target of $100 billion over the next 10 years can be set for

these two segments as the world is becoming an increasingly dangerous

place and global population less healthy with chronic diseases for which

India can offer holistic cures.

Lastly, the PM must take a leaf from the book of former Prime Minister,

Narasimha Rao, who was heading a minority government. Despite its

existence on the edge, he dared to bring in a technocrat at that time —

Dr. Manmohan Singh — to launch economic reforms. That was

statesmanship. Mr. Modi needs fresh and bold economic thinking to

steer the future of 1.3 billion aspiring Indians and the next big battle for

the ballot in 2019.

Mapping the not-so-normal monsoon

States where rainfall has been deficient make a difference to crop

prospects

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If you’re statistically inclined, you may be celebrating the fact that the

south-west monsoon for 2017, which is now bowing out, has turned out

to be normal for the second consecutive year. But farmers know that

there can be many shades of grey to an officially ‘normal’ monsoon.

Another bumper year?

India has received a total 841.3 millimetres (mm) of rain in the south-

west monsoon season from June 1 to September 30 this year.

IMD deems the season ‘normal’ if the all-India quantum of rain falls

within a 10% range of its long-period average of 887.5 mm. The 2017

monsoon fell short of the number only by 5%. In fact, the cumulative

rainfall numbers this year aren’t very different from 2016 when the

country recorded 862 mm of rain. This may seem like good news. In

2016-17, India harvested a record crop of cereals (252.7 million tonnes)

and managed a quantum jump in its output of both pulses (16.3 million

tonnes in 2015 to 22.9 million tonnes in 2016) and oilseeds (25 to 32

million tonnes). This contributed to a significant bump-up in the

agriculture leg of the GDP which grew 4.9% in FY17 compared with

0.7% in FY16.

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But expecting an encore of that impressive performance just because this

year’s monsoon has turned out ‘normal’, would be unrealistic. More

than the quantum of rainfall that is dumped on the sub-continent during

the four critical months, it is the spatial and temporal distribution of

rains that make or break crop prospects. On this score, the 2017

monsoon has been quite whimsical.

Patchy distribution

For the purposes of measuring the spatial spread of rainfall, the IMD

categorises India into 36 meteorological sub-divisions.

IMD’s wrap-up of the recent monsoon season tells us that in the just-

concluded monsoon season, 5 of India’s 36 sub-divisions received

excess rains, 25 received normal rains and 6 witnessed deficient rains.

Last year, 4 sub-divisions were showered with excess rains, 23 were

normal and 9 were deficient.

But the devil really lies in the details and the identity of the States that

suffered deficient rains really matter to crop prospects. This year’s

monsoon has played truant in some key food-bowl States. For instance,

West Bengal, Uttar Pradesh and Punjab account for a lion’s share of

kharif rice production. But this year’s monsoon has been 29% below

normal in Uttar Pradesh and 22% short of normal in Punjab. West

Bengal alone has enjoyed a near-normal season, as has much of the

southern peninsula. Madhya Pradesh, which is a critical growing region

for the rabi wheat crop, has seen a deficiency of 20%.

Madhya Pradesh, Rajasthan and Maharashtra are similarly critical for

pulses output. Of these, while Rajasthan has received excess rains (8%

above normal) and Maharashtra has been just about normal, rains

playing truant in Madhya Pradesh look set to impact pulses output.

While excess rains in Gujarat (19% above normal) could augur well for

the groundnut and cotton crops, the patchy show in both Madhya

Pradesh and Haryana (26% below normal) cloud the prospects for

oilseeds such as soyabean, rapeseed, mustard and sunflower. There have

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also been wide variations between growing regions within each state,

which can have a bearing on crop prospects.

Weak ending

Month-wise rainfall patterns during the south-west monsoon also play a

big role in deciding cropping area and yield. In 2016, the monsoon got

off to a snail-paced start, but picked up pace in the latter half of the

season.

But this year’s monsoon has behaved in exactly the opposite fashion.

After excess rains of about 4% and 2% against normal seasonal patterns

in June and July, the months of August and September have seen all-

India rainfall fall 12-13% short of normal levels. Good rains in the

months of June and July may have contributed to good sowing and

coverage of the kharif crops. But deficit rains in August and September

could impact the eventual output by pruning crop yields.

It is also important to note that rainfall in the last two months of the

south-west monsoon dictate reservoir storage and soil moisture, both of

which set the tone for the planting of the winter crops. Though there is

much tracking and analysis of India’s south-west monsoon and the

kharif crop, the rabi season has been equally important to the country’s

agricultural prospects in recent years. Rabi output often matches or even

exceeds the kharif output.

The rabi season accounts for the whole of India’s wheat and gram

harvest, a fourth of the output for coarse cereals and chips in with over a

third of the yearly harvest of urad and moong. Oilseeds such as rapeseed

and mustard, sunflower and safflower are also predominantly winter

crops. Therefore, dry spells in the latter half of this monsoon, taken with

deficient rains in key rabi growing regions, can make for less than rosy

rabi prospects.

All this could explain why the agriculture ministry, in its First Advance

Estimates, has painted a somewhat muted picture of crop prospects for

FY18. The estimates are based mainly on cropping and sowing patterns

and a lot can change on yields and output, as the year progresses. But so

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far, it appears as if India will have a hard time living up to the 4.9%

expansion in agriculture GVA that it so comfortably managed last year.

Why do we need external benchmarks while pricing loans?

An internal Study Group constituted by the Reserve Bank of India (RBI)

has recommended that banks should set interest rates based on an

external benchmark and not as per internal benchmarks as is the practice

now. Here is what you need to know on the subject:

What is the need for external benchmarks?

The Study Group has found that the present loan pricing regime, that is,

the marginal cost of fund based lending rate (MCLR) or the base rate

under the previous regime were both calculated based on banks’ internal

factors such as cost of funds. They are insensitive to changes in the

policy interest rate or repo rate. Analyses by the group suggested that

banks deviated in an ad hoc manner from the specified methodologies

for calculating the base rate and the MCLR to either inflate the base rate

or prevent the base rate from falling in line with the cost of funds.

What external benchmarks are available?

The study group has cited 13 possible candidates as external

benchmarks: the weighted average call rate (WACR), collateralised

borrowing and lending obligation (CBLO) rate, market repo rate, 14-day

term repo rate, G-sec yields, T-Bill rate, certificates of deposit (CD) rate,

Mumbai interbank outright rate (MIBOR), Mumbai inter-bank forward

offer rate (MIFOR), overnight index swap (OIS) rate, Financial

Benchmark India Ltd. (FBIL) CD rates, FBIL T-Bill rates and the

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Reserve Bank’s policy repo rate. The report also said that no instrument

in India met all the requirements of an ideal benchmark.

However, the group shortlisted 3 candidates from these 13 — one of

which could be selected by RBI as external benchmarks after receiving

feedback from all stakeholders. The Study Group is of the view that the

T-Bill rate, the CD rate and the RBI’s policy repo rate are better suited

than other interest rates to serve the role of an external benchmark.

From when will the external benchmark come into effect?

The Study Group has recommended that all floating rate loans extended

beginning April 1, 2018 could be referenced to one of the three external

benchmarks selected by RBI. The report said banks may be advised to

migrate all existing loans to the new benchmark without any conversion

fee or any other charges for switchover on mutually agreed terms within

one year from the introduction of the external benchmark, i.e., by end-

March 2019.

What will the spread be?

The Study Group was of the view that the decision on the spread over

the external benchmark should be left to the commercial judgment of

banks. However, the spread fixed at the time of sanction of loans to all

borrowers, including corporates, should remain fixed all through the

term of the loan, unless there is a clear credit event necessitating a

change in the spread.

What is the reset clause?

The group suggested quarterly interest rate resets as opposed to a one-

year reset as practised now for improvement in monetary transmission.

Will deposits also be linked to the external benchmark?

The report said banks may be encouraged to accept deposits, especially

bulk deposits at floating rates linked directly to one of the three external

benchmarks. The new State Bank of India chairman Rajnish Kumar has

already expressed the need to move deposits rates to an external

benchmark, in case loan prices are based on such benchmarks.

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‘Air pollution affects children’s memory’

PM2.5, black carbon exposure poses risk

Exposure to air pollution on the way to school can have damaging

effects on children’s cognitive development and reduce their working

memory, a study has found.

The study published in the journal Environmental Pollution, led by

researchers from the Barcelona Institute for Global Health (ISGlobal) in

Spain, assessed the impact of fine particulate matter (PM2.5) and black

carbon during the walking commute to and from school.

The findings of an earlier study had shown that 20% of a child’s daily

dose of black carbon — a pollutant directly related to traffic — is

inhaled during urban commutes. “The results of studies have shown that

these short exposures to very high concentrations of pollutants can have

a disproportionately high impact on health,” said Mar Alvarez-Pedrerol,

researcher at ISGlobal.

The study was carried out in Barcelona and enrolled over 1,200 children

aged from seven to 10, from 39 schools, all of whom walked to school.

Statistical analysis of the findings showed that exposure to PM2.5 and

black carbon was associated with a reduction in the growth of working

memory — an interquartile range increase in PM 2.5 and black carbon

levels was associated with a decline of 4.6% and 3.9%, respectively, in

expected annual growth of working memory.

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International Conference on Dialogue of Civilizations – IV (8th –

15th October, 2017)

The Archaeological Survey of India (ASI), Ministry of Culture,

Government of India, in collaboration with National Geographic Society

is hosting an international conference on “Dialogue of Civilizations –

IV” from 8th – 15th October, 2017 at Delhi, Gandhinagar and

Dholavira. This conference is fourth in this series of ‘dialogues’

initiated by National Geographic Society in 2013 with an objective to

encourage scholarly and public discourse about the five ancient, literate

civilizations of the world, i.e. Egypt, Mesopotamia, South Asia, China

and Mesoamerica and how the study of the past can share our present

and future towards the right direction. The first conference of this series

was inaugurated in Guatemala in 2013 followed by Turkey in 2014 and

China in 2015. The present conference is the fourth in this series, with

the final dialogue planned in Egypt.

The inaugural function of the conference held at 4.30 PM on

8.10.2017 at the Banquet Hall, The Ashok, Chanakyapuri, New Delhi.

Dr. Mahesh Sharma, Hon’ble Minister of State (Independent Charge),

Ministry of Culture & Minister of State for Environment, Forest &

Climate Change will inaugurate the opening ceremony in the presence of

Smt. Rashmi Verma, Secretary (Culture & Tourism), Dr. Alexander

Moen, Vice President, Explorer Programs, National Geographic Society,

Smt. Usha Sharma, Director General, Archaeological Survey of India

and Prof. Monica Smith, Cotsen Institute of Archaeology, Los Angeles.

The inaugural function was followed by a lecture by Prof. B.B.

Lal, Padma Bhushan awardee on ‘Harappan Civilization’, which

introduced the earliest civilization of South Asia to the scholars working

on other ancient civilizations and others. The lecture of Prof. B.B. Lal

traced the Harappan Civilization and its history of discovery, and

highlighting on town planning, agriculture and animal husbandry, art

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objects, crafts, trade, both internal and external, script, disposal of dead,

religion, political set up. He gave a brief account of all these aspects.

Besides, Prof. Lal also briefed on some of the new breaking news,

and some unique features which are not found from other parts of the

world. For example, he highlighted on the earliest ploughed field from

Kalibangan in Rajasthan; evidence of earliest datable earthquake from

Kalibangan (Rajasthan); earliest dockyard of the world which was found

at Lothal (Gujarat); unique water management system that have been

found at Dholavira (Gujarat).

Prof. Lal also talked about the evolution of Harappan Civilization

and traced its history to the indigenous cultures only and not from any

external influences. Prof. Lal tried to emphasize on the authorship of the

Harappan civilization and he presented evidences related to, and while

stating this he concludes that it is high time that the Aryan Invasion

Theory has to be written off. He also traces the legacy of the civilization

and quotes many of the customs and traditions of modern times having

its roots to the Harappan civilization.

Prime Minister launches Intensified Mission Indradhanush (IMI)

Let no child suffer from any vaccine-preventable disease: Prime

Minister

Improving the health status of children of our country is amongst

the top priorities of the Government: Sh J P Nadda

"Let no child suffer from any vaccine-preventable disease". This was

stated by Prime Minister Shri Narendra Modi as he launched the

Intensified Mission Indradhanush (IMI) at Vadnagar in Gujarat, today.

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Through this programme, Government of India aims to reach each and

every child under two years of age and all those pregnant women who

have been left uncovered under the routine immunisation programme.

The special drive will focus on improving immunization coverage in

select districts and cities to ensure full immunization to more than 90%

by December 2018. The achievement of full immunisation under

Mission Indradhanush to at least 90% coverage was to be achieved by

2020 earlier. With the launch of IMI, achievement of the target has now

been advanced.

Shri Vijaybhai Rupani, Chief Minister of Gujarat, Shri J P Nadda, Union

Minister of Health and Family Welfare, Smt. Anandiben Patel, Ex-Chief

Minister of Gujarat, Nitin Bhai Patel, Dy Chief Minister of Gujarat and

Shankarbhai Chaudhary, Minister of State, Gujarat Health and Family

Welfare and Medical Education, Environment and Urban Development

were also present at the launch function along with other dignitaries.

Speaking on the occasion to a packed audience, Shri Narendra Modi

stated that the Government has made immunization a people's and a

social movement. The Prime Minister made a strong appeal to all those

present in the audience and the country men and women to own the

programme in order to make all efforts to reduce maternal and child

mortality.

The Prime Minister also highlighted other achievements of the

Government including the new National Health Policy 2017 which has

been unveiled after fifteen years, and is people-centered. “Regulating of

the prices of stents has immensely helped a large section of the country

by reducing the cost of healthcare on the middle income group and poor

families”, Shri Narendra Modi added. The Prime Minister expressed

satisfaction at the success of the Pradhan Mantri Matritva Suraksha

Abhiyaan where private doctors have volunteered to provide free ANC

services to pregnant women on the 9th of every month along with

government doctors.

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Speaking at the function, Shri J P Nadda, Union Minister of Health and

Family Welfare, said that the unwavering support of the Prime Minister

has always been a source of great inspiration. He added that improving

the health status of the children of the country is amongst the top

priorities of the Government. Shri Nadda informed that the four phases

of Mission Indradhanush have reached to more than 2.53 crore children

and 68 lakh pregnant women with life-saving vaccines including 5.21

lakh children & 1.27 lakh pregnant women in Gujarat. Through this

mission, we have accelerated our progress towards our target of 90% full

immunization coverage, he stated. Earlier the increase in full

immunization coverage was 1% per year which has increased to 6.7%

per year through the first two phases of ‘Mission Indradhanush’.

With a sharpened focus on high priority districts and urban areas, under

IMI, four consecutive immunization rounds will be conducted for 7 days

in 173 districts -- 121 districts and 17 cities in 16 states and 52 districts

in 8 north eastern states -- every month between October 2017 and

January 2018. Intensified Mission Indradhanush will cover low

performing areas in the selected districts and urban areas. These areas

have been selected through triangulation of data available under national

surveys, Health Management Information System data and World Health

Organization concurrent monitoring data. Special attention will be given

to unserved/low coverage pockets in sub-centre and urban slums with

migratory population. The focus is also on the urban settlements and

cities identified under National Urban Health Mission (NUHM).

Intensified Mission Indradhanush will have inter-ministerial and inter-

departmental coordination, action-based review mechanism and

intensified monitoring and accountability framework for effective

implementation of targeted rapid interventions to improve the routine

immunization coverage. IMI is supported by 11 other ministries and

departments, such as Ministry of Women and Child Development,

Panchayati Raj, Ministry of Urban Development, Ministry of Youth

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Affairs among others. The convergence of ground level workers of

various departments like ASHA, ANMs, Anganwadi workers, Zila

preraks under National Urban Livelihood Mission (NULM), self-help

groups will be ensured for better coordination and effective

implementation of the programme.

Intensified Mission Indradhanush would be closely monitored at the

district, state and central level at regular intervals. Further, it would be

reviewed by the Cabinet Secretary at the National level and will

continue to be monitored at the highest level under a special initiative

‘Proactive Governance and Timely Implementation (PRAGATI)’.

This Intensified Mission is driven based on the information received

from gap assessment, supervision through government, concurrent

monitoring by partners, and end-line surveys. Under IMI, special

strategies are devised for rigorous monitoring of the programme. States

and districts have developed coverage improvement plans based on gap

self-assessment. These plans are reviewed from state to central level

with an aim to reach 90% coverage by December 2018.

An appreciation and awards mechanism is also conceived to recognize

the districts reaching more than 90% coverage. The criteria includes best

practices and media management during crisis. To acknowledge the

contribution of the partners/Civil Society Organization (CSOs) and

others, Certificate of Appreciation will be given.

At the function, the Prime Minister also dedicated the GMERS Medical

College, Vadnagar to the nation and launched the Innovative Mobile

Phone Technology for Community Health Operation (ImTeCHO) for

improving coverage of community based maternal, neonatal and infant

health services to reduce neonatal and infant mortality in Gujarat by

empowering health staff through use of innovative mobile phone

application. GMERS Medical College serves nearly 400-500 outdoor

patients and 80-100 indoor patients daily.

Page 45: Modi hits out at UPA for neglecting health - tathagatias.comtathagatias.com/uploads/syllabus/59db293c1efc9_pdf.pdf.pdf · years back. After that, ... Modi said, referring to the UPA

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प्रधानमंत्री ने सघन ममशन इंद्रधनुष का उद्घाटन ककया

टीके से इलाज संभव होने की स्थिति में कोई भी बच्चा टीके से वंचचि न रहे : प्रधानमंत्री

देश के बच्चों के थवाथ्य में सुधार सरकार की सवोच्च प्रािममकिा :

श्री जे.पी.नड्डा

प्रधानमंत्री श्री नरेन्द्र मोदी ने कहा है कक यदद टीके से ककसी रोग का इलाज संभव है तो ककसी भी बच्चे को टीके का अभाव नहीं होना चादहए। प्रधानमंत्री आज गुजरात के वडनगर में सघन ममशन इंरधनुष का शुभारंभ कर रहे थे। उन्द्होंने कहा कक इस काययक्रम के जररए भारत सरकार ने दो वषय की आयु के प्रत्येक बच्चे और उन गभयवती माताओ ंतक पहंुचने का लक्ष्य रखा है जो टीकाकरण काययक्रम के अंतगयत यह सुववधा नहीं पा सके हैं। ववशेष अमभयान के तहत टीकाकरण पहंुच में सुधार के मलए चनेु हुए जजलों और राज्यों में ददसंबर 2018 तक पूणय टीकाकरण से 90 प्रततशत से अधधक का लक्ष्य रखा गया है। ममशन इंरधनुष के अंतगयत 2020 तक पूणय टीकाकरण का लक्ष्य रखा गया है। इसके तहत 90 प्रततशत क्षेत्रों को शाममल ककया जाना है। गुजरात के मुख्यमंत्री श्री ववजय भाई रूपानी, कें रीय स्वास््य और पररवार कल्याण मंत्री श्री जे.पी.नड्डा, गुजरात की पूवय मुख्यमंत्री श्रीमती आनंदीबेन पटेल, गुजरात के उप-मुख्यमंत्री श्री तनततनभाई पटेल, गुजरात के स्वास््य और पररवार कल्याण और धचककत्सा मशक्षा, पयायवरण एवं

Page 46: Modi hits out at UPA for neglecting health - tathagatias.comtathagatias.com/uploads/syllabus/59db293c1efc9_pdf.pdf.pdf · years back. After that, ... Modi said, referring to the UPA

Tathagat Best institute for UPSC & MPPSC

H-309, 3rd Floor, Sundram Complex, Bhanwar Kuan, Indore (M.P.) Ph. : 0731-4002328 Contact : 84351-81328,

8839177961 www.tathagatias.com Page 46

शहरी ववकास मंत्री शंकर भाई चौधरी सदहत अन्द्य ववमशष्ट व्यजतत भी इस अवसर पर उपजस्थत थे। खचाखच भरे पररसर में जनसमुदाय को संबोधधत करत े हुए प्रधानमंत्री श्री नरेन्द्र मोदी ने कहा कक सरकार ने टीकाकरण को लोगों को जन एवं सामाजजक आदंोलन बनाया है। प्रधानमंत्री ने लोगों से जोरदार अपील की कक वे मात ृएवं मशशु मतृ्यु दर को रोकने के मलए चलाए जा रहे काययक्रम को अपनाए और इस ददशा में सरकार को सहयोग दें। प्रधानमंत्री ने सरकार की अन्द्य उपलजधधयों के बारे में भी जानकारी दी। उन्द्होंने कहा कक उनकी सरकार 15 वषों के बाद नई राष्रीय स्वास््य नीतत, 2017 लाई है जो जनकें दरत है। प्रधानमंत्री ने कहा कक सरकार ने स्टंट की कीमतों का ववतनयमन ककया है जजससे बडी संख्या में देश के लोगों का भला हुआ है। इससे मध्यम आय वगय और गरीब पररवारों के मलए स्वास््य के्षत्र में खचय में कटौती हुई है। प्रधानमंत्री मात्ततृ्व सुरक्षा अमभयान की सफलता पर संतोष व्यतत ककया। उन्द्होंने कहा कक तनजी डॉतटरों ने सरकारी डॉतटरों के साथ हर महीने की 9 तारीख को गभयवती मदहलाओ ं को तनिःशुल्क सेवाएं देने की पहल की है। इस अवसर पर कें रीय स्वास््य और पररवार कल्याण मंत्री श्री जे.पी.नड्डा ने कहा कक प्रधानमंत्री का अपार समथयन उनके मलए पे्ररणास्रोत रहा है। उन्द्होंने यह भी कहा कक देश के बच्चों में स्वास््य सुधार सरकार की सवोच्च प्राथममकता है। श्री नड्डा ने सूधचत ककया कक ममशन इंरधनुष के चार चरणों के तहत 2.53 करोड बच्चे और 68 लाख

Page 47: Modi hits out at UPA for neglecting health - tathagatias.comtathagatias.com/uploads/syllabus/59db293c1efc9_pdf.pdf.pdf · years back. After that, ... Modi said, referring to the UPA

Tathagat Best institute for UPSC & MPPSC

H-309, 3rd Floor, Sundram Complex, Bhanwar Kuan, Indore (M.P.) Ph. : 0731-4002328 Contact : 84351-81328,

8839177961 www.tathagatias.com Page 47

गभयवती मदहलाओँ को जीवनरक्षक टीकें उपलधध कराए गए हैं। इनमें से 5.21 लाख बच्चे और 1.27 लाख गभयवती मदहलाएं गुजरात से हैं। उन्द्होंने बताया कक ममशन इंरधनुष के जररए हम 90 प्रततशत पूणय टीकाकरण के लक्ष्य को हामसल कर लेंगे। इससे पहले पूणय टीकाकरण, कवरेज में वदृ्धध का लक्ष्य हर वषय 1 प्रततशत था। ममशन इंरधनुष पहले दो चरणों में टीकाकरण में 6.7 प्रततशत प्रततवषय की बढोत्तरी दजय की गई है। अततूबर 2017 और जनवरी 2018 के बीच हर महीने सघन ममशन इंरधनुष काययक्रम के तहत सवोच्च प्राथममकता वाले जजलों और शहरी के्षत्रों में 173 जजलों, 16 राज्यों के 121 जजलों और 17 शहरों और 8 पूवोत्तर राज्यों के 52 जजलों में तनरंतर टीकाकरण का दौर जारी रहेगा। सघन ममशन इंरधनुष काययक्रम चुतनदंा में ऐसे जजलों और शहरी के्षत्रों में वाले के्षत्रों में चलाया जाएगा जहां टीकाकरण कम हुआ है। यह के्षत्र राष्रीय सवेक्षण, स्वास््य प्रबंध सूचना प्रणाली डटेा एवं ववश्व स्वास््य संगठन से प्राप्त आकंडों के आधार पर तय ककए जाएंगे। एक स्थान से दसूरे स्थान पर प्रवास करने वाले शहरी झुग्गी-झोपडडयों और उप-कें रों में ऐसे के्षत्रों पर ववशेष ध्यान ददया जाएगा जहां टीकाकरण या तो नहीं हुआ या उसका प्रततशत बहुत कम है। राष्रीय शहरी स्वास््य ममशन के अंतगयत शहरी बजस्तयों और शहरों पर ववशेष ध्यान कें दरत ककया जाएगा । सघन ममशन इंरधनुष टीकाकरण कवरेज में सुधार के मलए अंतरमंत्रालय

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Tathagat Best institute for UPSC & MPPSC

H-309, 3rd Floor, Sundram Complex, Bhanwar Kuan, Indore (M.P.) Ph. : 0731-4002328 Contact : 84351-81328,

8839177961 www.tathagatias.com Page 48

और अंतर ववभागीय समन्द्वय, कारयवाई आधाररत समीक्षा प्रबंध एवं सघन तनगरानी और जवाबदेही प्रणाली अपनाई जाएगी ताकक लक्षक्षत के्षत्रों में प्रभावी टीकाकरण का लक्ष्य हामसल ककया जा सके। इस काययक्रम में 11 अन्द्य मंत्रालय और ववभाग भी अपना समथयन प्रदान कर रहे हैं। मदहला एवं बाल ववकास मंत्रालय, पंचायती राज, शहरी ववकास, युवा कायय एव ं अन्द्य मंत्रालयों ने सघन ममशन इंरधनुष काययक्रम में अपना सहयोग ददया है। जमीनी स्तर पर कायय करने वाले ववमभन्द्न लोगों के जररए इस काययक्रम को प्रभावी ढंग से कायायजन्द्वत ककया जाएगा। आशा, आगंनबाडी वकय र, राष्रीय शहरी जीववका ममशन के अंतगयत जजला पे्ररक और स्वयंसेवी संगठनों के बेहतर समन्द्वय और प्रभावी कायायन्द्वयन के जररए यह काययक्रम चलाया जाएगा। जजला, राज्य और कें रीय स्तर पर तनयममत अंतराल के दौरान सघन ममशन इंरधनुष की कडी तनगरानी की जाएगी। बाद में राष्रीय स्तर पर मंत्रत्रमंडलीय सधचव इसकी समीक्षा करेंगे। प्रगतत काययक्रम के तहत सवोच्च स्तर पर इसकी तनगरानी होगी। सघन ममशन इंरधनुष काययक्रम में सरकार द्वारा तनरीक्षण, सहायकों की तनगरानी और सवेक्षण के जररए चलाया जाएगा। इस काययक्रम की तनगरानी के मलए ववशेष रणनीतत बनाई गई है। राज्य और जजला स्तर पर आत्मावलोकन के अंतराल पर आधाररत सुधार योजना तैयार की गई है। ये योजनाएं राज्य से कें रीय स्तर तक चलाई जाएंगी ताकक ददसंबर 2018 तक 90 प्रततशत तक टीकाकरण का लक्ष्य हामसल ककया जा

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Tathagat Best institute for UPSC & MPPSC

H-309, 3rd Floor, Sundram Complex, Bhanwar Kuan, Indore (M.P.) Ph. : 0731-4002328 Contact : 84351-81328,

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सके। 90 प्रततशत से अधधक का लक्ष्य हामसल करने वाले जजलों के मलए मूल्यांकन और पुरस्कार पद्धतत अपनाई जाएगी। लक्ष्य के मागय में अवरोधों की जस्थतत में बेहतरी के मलए पद्धतत अपनाई जाएगी और मीडडया प्रबंधन के द्वारा जागरूकता अमभयान चलाए जाएंगे। साझीदारों/नाधगरक सोसाइटी संगठनों और अन्द्यों के सहयोग से प्रशंसा प्रमाणपत्र प्रदान ककए जाएंगे। समारोह में प्रधानमंत्री ने जीएमईआरएस धचककत्सा कॉलेज वडनगर को देश को समवपयत ककया। उन्द्होंने समुदाय स्वास््य अमभयान के मलए नवप्रवतयनशील मोबाइल फोन टेतनोलॉजी का शुभारंभ भी ककया। इससे समुदाय आधाररत मात ृ एवं मशशु स्वास््य सेवाओ ं का कवरेज संभव होगा और गुजरात में मात ृ और मशशु मतृ्यु दर को कम करने में सहायता ममलेगी। जीएमईआरएस मेडडकल कॉलेज में प्रततददन 400 से 500 बाहरी मरीज और 80 से 100 स्थानीय मरीजों का इलाज होता है। उन्द्नततशील मोबाइल फोन एप्लीकेशन के जररए स्वास््य सेवाओ ं के सुदृढ करने में सहायता ममलेगी।

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Tathagat Best institute for UPSC & MPPSC

H-309, 3rd Floor, Sundram Complex, Bhanwar Kuan, Indore (M.P.) Ph. : 0731-4002328 Contact : 84351-81328,

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