[Mission 2023] INSIGHTS DAILY CURRENT AFFAIRS + PIB SUMMARY 24 June 2022

GS Paper 2

Syllabus: Bilateral, regional and global grouping and agreements involving India.

Context:

• The Russian President called for the strengthening of BRICS(Brazil, Russia, India, China and South Africa) at a virtual summit of leaders of the grouping hosted by China.
• Indian Prime Minister focussed on the importance of BRICS in the post-pandemic global economic recovery, Chinese President called upon members to reject the“Cold War mentality” and oppose what he called “unilateral sanctions” by the U.S. and the European Union.

Key points of the meeting:

• The Indian Prime Minister said BRICS countries have a “very similar view of the governance of the global economy”.
• He hailed “practical” cooperation in areas:

1. New Development Bank
2. Satellite agreement
3. COVID Research and Development Centre set up in South Africa,
4. Mutual recognition of pharma products, including COVID vaccines and medicines.

• The Beijing summit declaration said that BRICS countries recalled their national positions as expressed at the United Nations

Insta Link

To read more about BRICS: click here

Practice Questions

Q. BRICS countries have a very similar view of the governance of the global economy”. Do you agree with the statement? Justify your answer. (10M)

Q. Which of the following is the correct arrangement of BRICS countries from west to east?

a. Brazil-South Africa-India-China-Russia

b. Brazil-South Africa-Russia-India-China

c. South Africa-Brazil-China-Russia-India

d. Brazil-South Africa-China-Russia-India

Ans: (b)

Source: The Hindu

GS Paper 2

Syllabus: India and its neighbourhood relations, important international institutions(IMF)

Context:

• The Pakistani rupee (PKR) has been falling continuously from 150 in April 2021 to 213 against the dollar on 21 June, an all-time low.
• Pakistan’s foreign exchange reserves have been depleting during the last one year.
• According to State Bank of Pakistan data, from $17.2 billion in June 2021, the net reserves with the SBP have come down to $8.9 billion in June 2022.
• Citing“heightened external vulnerability risk” and the “ability to secure additional external financing,” the rating agency Moody’s downgraded Pakistan’s outlook to negative.

Conditions by the IMF to support Pakistan:

Will Pakistan pursue macroeconomic reforms?

Insta Links:

To read about the moody rating: click here

To read about IMF: click here

Practice Questions

Q. How do rating agencies rate the economic performance of a country. What are its implications? Discuss. (15M)

Q. With reference to International Monetary Fund(IMF), consider the following statements:

1. The IMF gives loans to member countries that are struggling to meet their international obligations.
2. It is part of the Brettenwood Conference along with the World Trade Organization(WTO).

Which of the statements given above is/are correct?

a. 1 only

b. 2 only

c. Both 1 and 2

d. Neither 1 nor 2

Ans: (a)

Source: The Hindu

GS Paper 2

Syllabus: Welfare schemes for vulnerable sections, issues related to development and management of the social sector.

Context:

The Union Rural Development Ministry must withdraw its order to discontinue manual attendance for Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) worksites with more than 20 workers and use a mobile phone-based application, National Mobile Monitoring Software (NMMS), for recording attendance, the People’s Action For Employment Guarantee (PAEG), a group of academics and activists working in the field.

Key issues:

• Violation of NREGA: The Ministry’s order of manual attendance is in violation of the NREGA law and also flagged a series of technical and sociological issues with the app.
  • Section 15 – Schedule 1 lays down rules about the muster rolls — clearly says that the muster roll must be accessible to the workers on demand all day during all working hours. If The muster roll is available only digitally, access will be limited.
• Discourages mates: The app discourages women from being mates which fundamentally undermines the Ministry’s own repeated push towards encouraging women workers as NREGA mates.
  • The job of a mate is to see the work of the workers working in his workplace. To make daily attendance of labourers, to see who came and who did not.
• Lack of access to digital devices: Having a smartphone is now mandatory for mates to record attendance on the NMMS. However, many women from poorer households don’t have access to smartphones.
• Language issues: The app has been designed completely in English And there is no technical help provided to redress problems.

Insta Links

To read about MGNREGS: click here

Practice Questions:

Q. “MGNREGA created rural infrastructure and assets, along with increasing rural demand and employment”. How far has the scheme been successful in its objective? Critically analyze.

Q. With reference to MGNREGS, consider the following statements:

1. The application must be made with the local Gram Panchayat only.
2. Within 30 days of submitting the application or from the day work is demanded, wage employment will be provided to the applicant.

Which of the statements given above is/are not correct?

a. 1 only

b. 2 only

c. Both 1 and 2

d. Neither 1 nor 2

Ans: (b)

Source: The Hindu

GS Paper 3

Syllabus: Effects of liberalisation on the economy (post-1991 changes)

Context:

Foreign portfolio investors have pulled out Rs 42,000 crore this month amid rising inflation and monetary policy tightening in the US.

What are Foreign portfolio investors (FPI)?

FPI involves an investor buying foreign financial assets such as fixed deposits, stocks, and mutual funds. All the investments are passively held by the investors.

Why is capital flowing out?

• Playing safe: Investors see relatively high valuations in India, rising bond yields in the US, an appreciating dollar and concerns regarding the possibility of a recession in the US triggered by a rate hike in the US as the possible reasons for their pullout.
• In India, inflation surged to an eight-year high of 7.79% in April, prompting the RBI to hike the repo rate by 90 basis points to 4.90%.

How does it impact the markets and the rupee?

India’s foreign exchange reserves have fallen $46 billion in the last nine months to $596.45 billion as of June 2022, mainly due to the dollar appreciation and FPI withdrawals.

• Rupee depreciation may lead to higher import bills: A strong dollar (and weaker rupee) is good for export-oriented companies but bad for import-oriented industries such as oil, gas and chemicals.
• With the dip in the rupee, oil imports and other imported components will get costlier, which will further lead to higher inflation.

How do FPIs operate?

In times of global uncertainty, FII moves money from risky assets such as equities and add more bonds and gold. When interest rates rise in the US and other advanced economies, they withdraw money from emerging markets such as India and invest in the bonds in their domestic markets. The 10-year US bond has shot up from a low of 0.54% in July 2020 to over 3.30% now.

How big are FII in India?

FPIs are the largest non-promoter shareholders in the Indian market and their investment decisions have a huge bearing on the stock prices and overall direction of the market.

Will the rupee fall further?

The rupee has continued to depreciate despite the RBI selling dollars from its forex reserve to stabilise the currency. The rise in US inflation, rate hike worries and the stock market fall may drive further weakening of the rupee in India.

Insta Links:

Also read a related article on central bank raising interest rates and its impact : 22nd June CA

Practice Questions:

Q. Examine the role played by Foreign Direct Investment and Foreign Institutional Investors in the economy of the developing countries. (150 words, 10 marks)

Q. With reference to Foreign Direct Investment in India, which one of the following is considered its major characteristic? (UPSC CSE 2020)

a. It is the investment through capital instruments essentially in a listed company.

b. It is a largely non-debt creating capital flow.

c. It is the investment which involves debt-servicing.

d. It is the investment made by foreign institutional investors in Government securities.

Answer: B

Q. With reference to the Trade-Related Investment Measures (TRIMS), which of the following statements is/are correct? (UPSC CSE 2020)

1. Quantitative restrictions on imports by foreign investors are prohibited.
2. They apply to investment measures related to trade in both goods and services.
3. They are not concerned with the regulation of foreign investments.

Select the correct answer using the code given below:

(a) 1 and 2 only

(b) 2 only

(c) 1 and 3 only

(d) 1, 2 and 3 only

Answer: C

Q. Both Foreign Direct Investment (FDI) and Foreign Institutional Investor (FII) are related to investment in a country. Which one of the following statements best represents an important difference between the two? (UPSC CSE 2011)

(a) FII helps bring better management skills and technology, while FDI only brings in capital

(b) FII helps in increasing capital availability in general, while FDI only targets specific sectors

(c) FDI flows only into the secondary market, while FII targets the primary market.

(d) FII is considered to be more stable than FDI

Answer: B

Sources: Indian Express

GS Paper 3

Syllabus: Science and Technology

Context:

A study by Lancet Infectious Disease has estimated that Covid-19 vaccines prevented nearly 1.98  crore deaths worldwide — out of a potential 3.14 crore deaths — in the first year of the vaccine programme. These include 42.10 lakh deaths prevented in India.

What does the study say:

• Majority of Indians are fully vaccinated: India began vaccination in January 2021. According to the Health Ministry, to date, the cumulative vaccination coverage exceeds 196.62 crores. More than 65% of the population are fully vaccinated, according to Our World in Data.
• Global inequalities: The study found high and upper-middle-income countries accounted for the greatest number of prevented deaths (1.22 crore/1.98 crore), highlighting inequalities around the world.

Significance of the study:

Huge impact: The data shows the remarkable impact that vaccination has had, especially in India, which was the first country to experience the impact of the Delta variant.

Insta Links

Issues of Vaccination During COVID

Responding to adversity with achievement

Practice Questions

Q. “The COVID-19 vaccination drive demonstrates that India has become Atmanirbhar in vaccination against infectious diseases”, Elucidate. (10M)

 Q. With reference to recent developments regarding ‘Recombinant Vector Vaccines’, consider the following statements: (UPSC CSE 2021)

1. Genetic engineering is applied in the development of these vaccines.
2. Bacteria and viruses are used as vectors.

Which of the statements given above is/are correct?

(a) 1 Only

(b) 2 Only

(c) Both 1 and 2

(d) Neither 1 nor 2

Answer: (b)

Q. What is the importance of using \ Pneumococcal Conjugate Vaccines in India? (UPSC CSE 2020)

1. These vaccines are effective against pneumonia as well as meningitis and sepsis.
2. Dependence on antibiotics that are not effective against drug-resistant bacteria can be reduced.
3. These vaccines have no side effects and cause no allergic reactions.

Select the correct answer using the code given below:

(a) 1 only

(b) 1 and 2 only

(c) 3 only

(d) 1, 2 and 3

Answer: b

Source: Indian Express

GS Paper 3

Syllabus: Indian Economy and issues relating to planning, mobilisation of resources, growth, development and employment.

Context:

Cooperation Minister has highlighted that cooperative banks will not be given a “second-grade” treatment but they should adopt modern and transparent banking methods to stay in the competition.

Status: As per RBI, as of March 2019, there were 1,544 urban co-operative banks, and 96,248 rural co-operative banks in the country.

Need for modernization:

• Negligible participation: There were more than 195 cooperative banks that were more than 100 years old. Despite this, the role of urban cooperative banks is negligible in the total banking sector in terms of deposit and advance payment.
  • UCBs account for only 3.25 per cent of the total bank deposits and 2.69 per cent of the total advances in the country.
• Symmetric development of Urban cooperative: There are 1,534 urban cooperative banks, and 54 scheduled urban cooperative banks but the development is uneven. The symmetric development of cooperative banks will help sustain competition in future.
• Need to look after small and marginal sections: Urban State Cooperative Banks need to be strengthened for the upliftment of that section, and to make them participants in the process of development and a stakeholder in the country’s economy.

What should be done:

• Adopt modern and transparent banking methods to stay in competition e.g. computerization of accounting process
• Engage younger people in management roles
• Engage professionals to run day-to-day affairs
• Treating UCB equally in government policies in respect of taxation, BR Act [The Banking Regulation Act, 1949] or the Reserve Bank’s norms.
• Responsibility lies with the cooperative sector: It is the cooperatives’ responsibility to establish trustworthiness and earn people’s faith as well as win the confidence of the RBI and the government.
• Undertake institutional reforms like transparency in recruitment and implementation of a robust accounting system, which is necessary for their growth.

Insta Links

Cooperative banks under RBI

Practice Questions:

Q. Co-operative banks in India form the backbone for the delivery of credit to rural areas. However, for cooperative banks to be regulated and supervised better, RBI needs to ramp up its supervisory capacity. Elucidate. (15M)

 Q. With reference to ‘Urban Cooperative Banks’ in India, consider the following statements: (UPSC CSE 2021)

1. They are supervised and regulated by local boards set up by the State Governments.
2. They can issue equity shares and preference shares.
3. They were brought under the purview of the Banking Regulation Act, 1949 through an Amendment in 1966.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 and 3 only

(c) 1 and 3 only

(d)1, 2 and 3

Answer: b

Q. Consider the following statements: (UPSC CSE 2020)

1. In terms of short-term credit delivery to the agriculture sector, District Central Cooperative Banks (DCCBs) deliver more credit in comparison to Scheduled Commercial Banks are Regional Rural Banks
2. One of the most important functions of DCCBs is to provide funds to the Primary Agricultural Credit Societies.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Answer: b

Sources: The Hindu, Indian Express

GS Paper 4

Syllabus: Media Ethics

Context:

The Central Consumer Protection Authority has come up with the Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022.

• Bait advertising: It means enticing consumers to buy the product at a lower price.
  • High Tech:-Computers and other high-tech items are easy to bait and switch because many people don’t understand the technology. So, when a salesperson claims that the only difference between this model and the one advertised is that the manufacturers are different, the consumer believes it.
  • They are regulated in India.
• Surrogate advertisements: They refer to any advertisement that promotes regulated products, like cigarettes and alcohol, in the disguise of another product.
  • The guidelines prohibit the use of surrogate advertising.

• Free advertisements: The advertising method that helps brands get free promotion and boost online presence without any high price tags.
• • g. Do a free product giveaway or contests; answer quora questions.
• Advertisements targeted at children and youth: The guidelines prohibit the advertisement of such products that will harm kids in any way.
  • The guidelines also prohibit advertisements that can develop a negative image of the body in the minds of the children. E.g Fairness cream etc.
  • Advertisements also cannot give the impression that a product is better than the traditional food that children usually consume at home. E.g Maggi, Yippee noodles, etc.
• Penalty (derived from the Consumer Protection Act): It prescribes monetary penalties to the tune of Rs 10 lakh for the first offence, which can go up to Rs 50 lakh for subsequent offences, and imprisonment of up to two years under Section 89 of the Act.

Vinay Samarasya:

The initiative was launched to curb the practice of untouchability still prevalent in the State of Karnataka.

It is named after a two-year-old toddler belonging to a Dalit family – fined 25,000 because their kid Vinay entered a temple premises at Miyapur village in Kushtagi taluk North Karnataka.

Woman to “Man”: Why Pechiyammal disguised as “Muthu” for 36 Years

A woman from Thoothukoodi Tamil Nadu, disguised herself to be a man after her husband’s death and the birth of a daughter.

This shows the harsh reality of how hard it is for a single mother/woman in India to lead a normal life.

She mentioned one incident where at night a drunkard was walking at a distance, immediately she lit a beedi seeing her he came and asked whether she had a matchbox, according to her if she was in female attire it would have led to physical assault.

When asked about how it was illegal to fake gender on government identity cards she responded that “can the government guarantee the safety of me and my daughter ?”.

Finally, she had to reveal her true identity so that she can avail old age widow pension and other government benefits.

Her life is an example that how women have been treated in Indian Society and the negative attitude toward single women/mothers.

Odisha’s Mo Bus

Mo Bus, the bus service of Odisha’s Capital Region Urban Transport (CRUT) authority, has been recognised by the United Nations as one of 10 global recipients of its annual Public Service Awards for 2022 –  for its role in “promoting gender-responsive public services to achieve the SDGs (Sustainable Development Goals)”

Mo Bus incorporates:

• Real-time technologies like live tracking, travel planner and e-ticketing”
• E-rickshaw system called ‘Mo E-Ride’ has been introduced as a last-mile feeder service.
• Impact:
  • 57 per cent of the city’s commuters now use the Mo Bus.
  • Mo E-Ride is estimated to reduce pollution by 30-50 per cent.
  • 40 per cent of Mo Bus conductors are women and 100 per cent of Mo E-Ride drivers are women, transgender people, and people from disadvantaged communities.

UN Public Service Award: It is the “most prestigious international recognition of excellence in public service”. It is intended to reward “the creative achievements and contributions of public service institutions that lead to a more effective and responsive public administration in countries worldwide”.