03 Apr, 2020
57 Min Read
|GS-III||Core Sector data and IIP (Index of Industrial Production)||Economic Issues|
|Lifeline Udan flights launched and COVID-19||Economic Issues|
|UNFCCC and Climate change analysis|
|Initiatives to Fight Coronavirus – Part-3||Economic Issues|
|Impact of Lockdown on Banks||Economic Issues|
|PT Pointer||Agasthyavanam Biological Park|
|Operation Sanjeevani||International Relations|
Part of: GS Prelims and GS-III-Economic data
According to the data released by the Ministry of Commerce and Industry, the eight core sector industries recorded a growth of 5.5% in February, 2020 which is highest in 11-months.
Core Sector Industries
CORE INDUSTRIES AND WEIGHTAGE
Industry Weight (In percentage)
Petroleum & Refinery production 28.04
Electricity generation 19.85
Steel production 17.92
Coal production 10.33
Crude Oil production 8.98
Natural Gas production 6.88
Cement production 5.37
Fertilizers production 2.63
Index of Industrial Production
Official Definition – As given by CSO
“It is a composite indicator that measures the short-term changes in the volume of production of a basket of industrial products during a given period with respect to that in a chosen base period.”
IIP – Explanation
Index of Industrial Production Importance
IIP Latest Change
IIP 2004-05 covers 682 items!
We have already seen that IIP measures industrial growth. It measures the short term changes in the volume of production of a basket of industrial products. The current IIP basket covers 682 representative items.
Note: Even though United Nations Statistics Division suggests to also include Gas steam, Air conditioning supply, Water supply, Sewerage, Waste Management and Remediation activities in the IIP, due to data constraints Indian IIP only covers three sectors – mining, manufacturing and electricity. These three are called broad sectors.
Annual Survey of Industries (ASI) Vs Index of Industrial Production (IIP)
The Industrial Output data is captured and monitored, primarily, through two statistical activities – Annual Survey of Industries (ASI) and Index of Industrial Production (IIP).
Industry vs Manufacturing
Though often interchangeably used, the terms industry and manufacturing are different. The term industry is comprehensive and may be considered as a superset of manufacturing. Industry, in general, refers to an economic activity that is concerned with the production of goods, extraction of minerals and sometimes even for the provision of services. Thus we have iron and steel industry (production of goods), coal mining industry (extraction of coal) and tourism industry (service provider).
So what is manufacturing then?
Manufacturing: Production of goods in large quantities after processing from raw materials to more valuable products is called manufacturing.
Industry = Manufacturing + Mining + Electricity + much more.
Note: The share of Manufacturing in the GDP of India – 17%.
The share of Mining, quarrying, electricity and gas in the GDP of India – 10%.
Total share of Industrial Sector = 27%
Jai Hind Jai Bharat
Lifeline Udan flights launched and COVID-19
As a part of curbing the adverse impact of COVID 19, the Ministry of Civil Aviation (MoCA) launched Lifeline Udan flights on March 26, 2020 for movement of medical and essential supplies across India. Over a 6 days period i.e. till March 31, 2020, 74 flights have been operated which had covered an aerial distance of over 70,000 km to transport 37.63 tonnes of medical cargo, out of which more than 22 tonnes was transported on March 31, 2020.
MoCA and Air India are formulating plans with Chinese authorities to initiate a cargo air-bridge between India and China for critical medical supplies from 3rd April 2020 onwards.
Union Minister– Hardeep Singh Puri
Secretary– Pradeep Singh Kharola
UDAN is a regional connectivity scheme spearheaded by the Government of India (GoI). The full form of UDAN is ‘Ude Desh ka Aam Nagarik’ and aims to develop smaller regional airports to allow common citizens easier access to aviation services. It is one of the new policies implemented since June 2016.
Objectives of the Regional Connectivity Scheme
This scheme is a part of the National Civil Aviation Policy (NCAP) and is funded jointly by the GoI and the state governments. The following are its salient features:
Value Gap Funding is not provided to cargo airlines. All other terms and conditions remain the same as passenger airlines. The fares are graded based on distance and flight hours for both fixed-wing and rotary-wing services. The RCS subsidy is funded by a levy of Rs 5000 per flight on major routes. Flights regulated under this policy framework can be booked from the UDAN website and major travel portals by passengers.
What is International UDAN Scheme?
Comment on the challenges faced in the implementation of the UDAN scheme.
UDAN 4.0 seeks to offer priority routes connecting Bilaspur and Ambikapur airports in Chhattisgarh.
Jai Hind Jai Bharat
United Nation’s COP 26 climate change summit postponed till 2021
Part of: GS Prelims and GS-III- S&T
NOTE: Please refer PT KUNJI SECTION for REVISE ENVIRONMENT IN 45 MINUTES BOOKLET.
The 26th session of the Conference of the Parties (COP 26) to the United Nations Framework Convention on Climate Change (UNFCCC), which was planned to take place from 9-19 November 2020, in Glasgow, Scotland in the United Kingdom (UK) has been postponed to 2021 due to COVID-19.The date and location for the same is unspecified. Pre-COP and ‘Youth for the Climate‘ event were also postponed supposed to be held in Italy.
Headquarter– Bonn, Germany
Executive Secretary– Patricia Espinosa
The WMO and UNEP established the Intergovernmental Panel on Climate Change (IPCC) in 1988, to assess the magnitude and timing of changes, estimate their impacts, present strategies for how to respond and to provide an authoritative source of up-to-date interdisciplinary knowledge on climate change.
Timeline of Important Events
1979 First World Climate Conference (WCC)
1988 IPCC established
1990 In November IPCC and second WCC call for global treaty on climate change and in December UN General Assembly Negotiations on a Framework Convention Begin.
1992 The text of the United Nations Framework Convention on Climate Change is adopted at the United Nations Headquarters in New York.
1994 UNFCCC enters into force
1995 COP 1 (Berlin, Germany)
1996 August: The UNFCCC secretariat relocates from Geneva to its current home in Bonn(Germany), paving the way for the city to become an international sustainability hub and home to 18 UN organizations.
1997 COP 3 (Kyoto, Japan): Kyoto Protocol adopted- The Protocol legally binds developed countries to emission reduction targets.
1998 Buenos Aires Plan of Action
2001 COP 6-2(second part of 6th COP): The COP 6-2 took place from 16 to 27 July 2001 in Bonn, Germany. A major breakthrough is achieved at the second part of the sixth Conference of the Parties meeting in Bonn, with governments reaching a broad political agreement on the operational rulebook for the 1997 Kyoto Protocol.
2001 COP 7 (Marrakesh, Morocco): Resulted in the Marrakesh Accords, setting the stage for ratification of the Kyoto Protocol. This formalized the agreement on operational rules for International Emissions Trading, the Clean Development Mechanism and Joint Implementation along with a compliance regime and accounting procedures.
2002 COP 8 (New Delhi, India) Delhi Declaration: The Delhi Declaration focuses on the development needs of the poorest countries and the need for technology transfer for mitigating climate change.
2005 (February 16): Entry of Kyoto Protocol into force with the Russian Federation ratification to the Kyoto Protocol, sealing its entry into force.
2005 COP11/CMP1 (December): The first Meeting of the Parties to the Kyoto Protocol (MOP 1) takes place in Montreal.
2006 In January the Clean Development Mechanism, a key mechanism under the Kyoto Protocol, opens for business. The CDM is one of the Flexible Mechanisms defined in the Kyoto Protocol that provides for emissions reduction projects which generate Certified Emission Reduction units (CERs) which may be traded in emissions trading schemes.
2007 COP13: Parties agreed on the Bali Road Map and Bali action plan, which charted the way towards a post-2012 outcome. The Plan has five main categories: shared vision, mitigation, adaptation, technology and financing.
2008 COP 14, Poznan (Poland): The launch of the Adaptation Fund under the Kyoto Protocol and The Poznan Strategic Programme on Technology Transfer.
2009 COP15 (Copenhagen): Copenhagen Accord drafted. Developed countries pledge up to USD 30 billion in fast-start finance for the period 2010-2012.
2010 COP 16 (Cancun): Resulted in the Cancun Agreements, a comprehensive package by governments to assist developing nations in dealing with climate change. The Green Climate Fund, the Technology Mechanism and the Cancun Adaptation Framework are established.
2011 COP 17 (Durban): Governments commit to a new universal climate change agreement by 2015 for the period beyond 2020.(Resulted in the Paris Agreement of 2015)
2012 COP18/CMP8 (Doha): The Doha Amendment to the Kyoto Protocol is adopted. COP18 also launched a second commitment period of the Kyoto Protocol.
2013 COP19/CMP9 (Warsaw) Key decisions adopted include: Further advancing the Green Climate Fund and Long-Term Finance, the Warsaw Framework for REDD Plus and the Warsaw International Mechanism for Loss and Damage.
2015 COP 21 (Paris): Paris Agreement adopted. It aims: To keep global temperatures "well below" 2.0C (3.6F) above pre-industrial times and "endeavor to limit" them even more, to 1.5C. Rich countries should help poorer nations by providing "climate finance" to adapt to climate change and switch to renewable energy. The agreement requires rich nations to maintain a $100bn a year funding pledge beyond 2020.
2016 COP22 (Marrakech): A crucial outcome of the Marrakech climate conference was, to move forward on writing the rule book of the Paris Agreement. Launched the Marrakech Partnership for Climate Action.
2017 COP23, Bonn (Germany): Countries continued to negotiate the finer details of how the agreement will work from 2020 onwards. First set of negotiations since the US, under the presidency of Donald Trump, announced its intention earlier this year to withdraw from the Paris deal. It was the first COP to be hosted by a small-island developing state with Fiji taking up the presidency, even though it was being held in Bonn.
2018 COP 24, Katowice (Poland): Poland held the Presidency of the Climate Convention for the third time. COP24 is the informal name for the 24th Conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC).
Important Outcome of Summit
Issues in Conference
Note: Carbon Credit-A carbon credit is a permit or certificate allowing the holder to emit carbon dioxide or other greenhouse gases. Carbon trading involves trading of carbon one of the market-based mechanisms set up under Kyoto Protocol.
COP25: The prime objective of the conference is to complete the rule-book to the 2015 Paris Agreement that will become effective in 2020 to replace the 1997 Kyoto Protocol (comes to an end in 2020).
The issues like the creation of new carbon markets, emission reduction targets, country’s individual targets, etc. remained unresolved during COP24 at Katowice (Poland) 2019. Thus the rulebook under the Paris Agreement could not be finalized.
Jai Hind Jai Bharat
Initiatives to Fight Coronavirus – Part-3
Part of: GS Prelims and GS-III- Economy and Health
I. Geo-fencing app will be used to locate quarantine violators
The Centre is using powers under the Indian Telegraph Act to fetch information from telecom companies every 15 minutes to track COVID-19 cases across the country.
COVID-19 Quarantine Alert System (CQAS):
What is Geo-fencing? (PT SHOT) S&T
How does the application work?
Addressing the privacy concerns:
Centre for Development of Telematics
Global Positioning System
II. Suggestions for Covid-19
Recently, the Prime Minister of India has held a video conference with the Chief Ministers of the States on tackling the Covid-19 pandemic. He emphasised on the importance of formulating a common exit strategy to ensure a steady re-emergence of the population after the lockdown is over.
Scientists on Lockdown
III. The Centre is planning to start the next academic year virtually.
Digital Infrastructure for Knowledge Sharing
National Institute of Open Schooling
IV. The demand for work by households under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) programme surged to a nine-year high in 2019-20.
According to the MGNREGA official portal, 5.47 crore households sought MGNREGA works, the highest since 2010-11, when the number was 5.5 crore. More individuals too worked under MGNREGA in 2019-20, with 7.86 crore employed at various sites across the country. This is the highest since 2012-13, when 7.97 crore individuals worked under this programme.The disruption caused by the coronavirus lockdown, however, may impact the final figure of the person days generated in March 2020.
The gram panchayats not recording any MGNREGA expenditure has also declined. This shows that more and more panchayats are using MGNREGA to provide unskilled work to the unemployed. These new MGNREGA figures coincide with the sharp fall in GDP growth rate to 5% in 2019-20, the lowest in a decade. The demand for works under MGNREGA is surging despite the fact that wages have been flattening in recent years. In 2019-20, average MGNREGA wage per day per person was Rs 182.09, barely Rs 3 higher than Rs 179.13 in 2018-19.
The data also showed that 263.73 crore person days were generated during 2019-20, slightly lower than 267.96 crore in 2018-19 but significantly higher than the total person days generated during each financial year from 2012-13 to 2017-18. During 2019-20, the Centre released Rs 72,162.13 crore for the MGNREGA, the highest ever amount, and substantially higher than the Rs 62,125.07 crore released in 2018-19.
V. Recently, the West Bengal government roped in Nobel laureate Abhijit Banerjee to spread awareness of COVID-19.
Abhijit Banerjee along with his wife economist Esther Duflo have agreed to help the West Bengal government.
Jai Hind Jai Bharat
Part of: GS Prelims and GS-III- Economy -Bank
Banks are concerned about the build-up of Non-performing Assets (NPAs) as the disruption caused to business operations and supply chains during the 21-day lockdown period will take time to repair.
What is NPA?
NPA refers to a classification for loans or advances that are in default or are in arrears on scheduled payments of principal or interest.
In most cases, debt is classified as non-performing, when the loan payments have not been made for a minimum period of 90 days.
Concerns of Bankers
PT PICKS UP
Part of: GS Prelims and GS-II- IR
Recently, India supplied 6.2 tonnes of essential medicines to the Maldives, under Operation Sanjeevani as assistance in the fight against COVID 19.
Previous India’s Assistance to Maldives (PT SHOTS)
Relations Between the Two Countries
Indigenous Fuel Cell System Part of: GS Prelims and GS-III- S&T On the occasion of the Council of Scientific and Industrial Research (CSIR) Foundation Day, the President of India recently introduced India’s first indigenously developed high-temperature based
National Supercomputing Mission Part of: GS Prelims and GS-III- S&T India has produced just three supercomputers since 2015 under the National Supercomputing Mission (NSM). National Supercomputing Mission The National Supercomputing Mission was announced in 201
Alcohol Sanitizers and Coronaviruses Part of: GS Prelims and GS-III- S&T The novel coronavirus has a lipid envelope. Soap being a detergent destroys this envelope. The same is true for alcohol also. Structure of Lipid Envelope: SARS-CoV-2 particles, like other cor
Indian Government’s Latest Moves - COVID-19 Part of: GS Prelims and GS-III- S&T Combination of Hydroxychloroquine and Azithromycin against COVID-19 instead of HIV drugs According to the new clinical management guidelines issued on 31st March, 2020, a co
Covid-19 and the Orphan Drug Act – Rare diseases Part of: GS Prelims and GS-III- S&T Recently, the World Health Organisation (WHO) declared the Covid-19 outbreak a pandemic. However, the United States Food and Drug Administration (FDA) declared Covid-19 an orph
COVID-19 and Globalisation Part of: GS Prelims and GS-III- Economy What is Globalisation? The meaning of Globalisation is usually interpreted to indicate the integration of the economy of the nation with the world economy, it is a multifaceted aspect. It is a result of the collection of mul
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Fund raising – COVID-19 Part of: GS Prelims and GS-III- Economy terms Recently, the Government has hiked Ways and Means Advance (WMA) limit with the Reserve Bank of India (RBI) by 60%. (PT SHOT) WMA limit is proposed to be revised to Rs 1.20 lakh crore and would be r
Exchange Traded Fund An Exchange-Traded Fund (ETF) is a basket of securities that trade on an exchange, just like a stock. ETF reflects the composition of an Index, like BSE Sensex. Its trading value is based on the Net Asset Value (NAV) of the underlying stocks
70 Years of Diplomatic Relations India-China Part of: GS Prelims and GS-III- Economy terms India and China mark the 1st of April 2020 as the 70th anniversary of the establishment of diplomatic relations between them starting in 1950 till now. Facts and Figures on China-India
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