Daily Current Affairs - Civil Services - 13-05-2021

Useful compilation of Civil Services oriented - Daily Current Affairs - Civil Services - 13-05-2021

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• SECTION 1 - TEN NEWS HEADLINES

1. People and Personalities - First Indian to win Sheikh Zayed Book Award - Dr. Tahera Qutbuddin became the first Indian to win the prestigious Sheikh Zayed Book Award. The Mumbai-born professor Mumbai was honoured for her book ‘Arabic Oration: Art and Function’. She is a US citizen who grew up in South Mumbai. Dr. Tahera will be awarded later in May 2021 in Abu Dhabi. The Sheikh Zayed Book Award commemorates the late Sheikh Zayed bin Sultan Al Nahyan, Founding President of the UAE and Ruler of Abu Dhabi, and his pioneering role in promoting national unity and development. The Award, and its associated accolades, are presented annually to outstanding writers, intellectuals, and publishers, as well as young talent whose writing and translation in humanities objectively enriches Arab intellectual, cultural, literary and social life. Each prize consists of a gold medal bearing the Sheikh Zayed Book Award logo, a certificate of merit, and a cash reward, comprising a total prize value of seven million UAE Dirhams (US $1.9m) annually.
2. Indian Economy - April IIP and inflation figures - India's retail inflation, measured by the Consumer Price Index (CPI), eased to 4.29 per cent in April. The retail inflation during the month of March was at 5.52 per cent. This is the fifth consecutive month that the CPI data has come within the Reserve Bank of India’s (RBI) upper margin of 6 per cent. The new monetary policy framework aims at maintaining retail inflation at 4 per cent with a margin of 2 per cent on either side for a five-year period ending March 2026. The easing of the retail inflation last month can be attributed to the softening of food prices. The Consumer Food Price Index (CFPI) or the inflation in the food basket eased to 2.02 per cent in the month of April, down from 4.87 per cent in March. The factory output, measured by the Index of Industrial Production (IIP), saw a growth of 22.4 per cent in March. In the fiscal year 2020-21 (April-March), the industrial sector saw a contraction of (-)8.6 per cent, compared to a (-)0.8 per cent fall year ago. The growth in IIP during March is on account of the manufacturing, electricity and mining sectors. The manufacturing sector saw a growth of 25.8 per cent on-year to 140.4 in March, while the electricity sector saw a rise of 22.5 per cent to 180.0. The mining sector too rose 6.1 per cent to 139.0, the MoSPI data showed.
3. World Politics - US Government reviews withdrawal from Open Skies Treaty - The US Government has been reviewing the withdrawal from the Open Skies Treaty by the previous Trump administration. The announcement came after the Russian President submitted a proposal for Russia’s exit from the post-cold war treaty, signed by 35 nations on March 24, 1992 after the end of the cold war. The Treaty had established the Open Skies regime for the conduct of short-notice, unarmed, observation flights by States Parties over the territories of other States Parties. The Treaty gives each State Party the right to conduct and the obligation to accept observation flights over their territory. The history of this goes to the 1955 Geneva Conference meeting where Soviet Premier Nikolai Bulganin and U.S. President Eisenhower proposed that the United States and Soviet Union conduct surveillance overflights of each other's territory to reassure each country that the other was not preparing to attack. The fears and suspicions of the Cold War led Soviet General Secretary Nikita Khrushchev to reject Eisenhower's proposal. Thirty-four years later, the Open Skies concept was reintroduced by U.S. President George H. W. Bush as a means to build confidence and security between all North Atlantic Treaty Organisation (NATO) and Warsaw Pact countries. Open Skies aircraft may have video, optical panoramic, and framing cameras for daylight photography, infrared line scanners for a day/night capability, and synthetic aperture radar for a day/night all weather capability. Today, 34 countries are a part of it, including the US and Russia (India isn't).
4. Science and Technology - OSIRIS-REx spacecraft to return - The Origins, Spectral Interpretation, Resource Identification, Security, Regolith Explorer (OSIRIS-REx) spacecraft will depart from the asteroid Bennu, and start its two-year long journey back to Earth. OSIRIS-REx is NASA’s first mission to visit a near-Earth asteroid, survey its surface and collect a sample from it. The seven-year-long mission was launched in 2016, reached its target in 2018. In October 2020, the spacecraft touched asteroid Bennu. When the spacecraft finally returns in September 2023, it will bring back the largest sample of dust and pebbles collected by a NASA mission since the Apollo astronauts collected samples of Moon rock. Bennu is considered to be an ancient asteroid that has not gone through a lot of composition-altering change through billions of years. This means that below its surface lie chemicals and rocks from the birth of the solar system. Studying Bennu might give clues about the origins of the solar system, the sun, the Earth and the other planets.
5. Envrionment and Ecology - Global Methane Assessment Report - The “Global Methane Assessment: Benefits and Costs of Mitigating Methane Emissions” report was released by the Climate and Clean Air Coalition and the United Nations Environment Programme (UNEP). The report said that human-caused methane emissions must be cut by 45% to avoid the worst effects of climate change. Such a cut would prevent a rise in global warming by up to 0.3 degrees Celsius by 2045. Prevent 260,000 premature deaths, 775,000 asthma-related hospital visits annually, as well as 25 million tonnes of crop losses.  Human-caused methane emissions are increasing faster currently than at any other time since record keeping began in the 1980s. Methane in the atmosphere reached record levels in 2020. The report noted that the most human-caused methane emissions came from three sectors - Fossil fuels, waste and agriculture.
6. Indian Economy - PLIS for Battery - The Prodution Linked Incentive Scheme for Advanced Chemistry Cell (ACC) Battery Storage was approved by the Cabinet. The proposal was from the Department of Heavy Industry, and aims to achieve a manufacturing capacity of 50 GigaWatt Hour of ACC and five Giga Watt Hour of Niche ACC with an outlay of Rs.18,100 crore. ACCs are the new generation of advanced storage technologies that can store electric energy either as electrochemical or as chemical energy and convert it back to electric energy as and when required. It will give a push to electric mobility, benefiting three-wheelers, four-wheelers and heavy vehicles. India is currently importing Battery Storage Equipment worth 20 thousand crore rupees and the scheme will be helpful in making the country self-reliant (Atmanirbhar).
7. Environment and Ecology - NITI's project for Great Nicobar - The Environment Appraisal Committee (EAC) - Infrastructure I of the Ministry of Environment, Forest and Climate Change (MoEFCC) has flagged serious concerns about NITI Aayog’s ambitious project for Great Nicobar Island. The committee has removed the first hurdle faced by the project, and has “recommended” it “for grant of terms of reference (TOR)” for Environmental Impact Assessment (EIA) studies, which in the first instance will include baseline studies over three months. Documents uploaded recently on the MoEFCC’s Parivesh portal show that the 15-member committee headed by marine biologist and former director, Bombay Natural History Society (BNHS), Deepak Apte, made the decision. The proposal includes an international container transshipment terminal, a greenfield international airport, a power plant and a township complex spread over 166 sq. km. (mainly pristine coastal systems and tropical forests), and is estimated to cost Rs.75,000 crore.
8. Environment and Ecology - Pangolin scales sequenced - Indian Researchers have sequenced 624 pangolin scales, thereby categorising the Indian and Chinese pangolins. Pangolins, despite being listed in Schedule I of Wildlife (Protection) Act, 1972 continue to be the world’s most trafficked mammal. The primary demand for its scales in the making of traditional East Asian medicines has led to an estimated illegal trade worth $2.5 billion every year. To enforce the appropriate national and international laws and to track the decline of the species, researchers of Zoological Survey of India (ZSI), Kolkata, have now developed tools to tell apart the scales of Indian pangolin (Manis crassicaudata) and Chinese pangolin (Manis pentadactyla). They characterised the morphological features and investigated genetic variations between the two species by sequencing 624 scales of pangolins and comparing the sequences with all eight pangolin species. Based on the size, shape, weight and ridge counts on the scales, the team was able to categorise the two species of Indian and Chinese pangolins. Though the Chinese pangolin is distributed mostly in Vietnam, Thailand, Cambodia, the north-eastern part of our country is also its home.
9. Governance and Institutions - Post-devolution Revenue Deficit - The Ministry of Finance has released the second monthly instalment of Post Devolution Revenue Deficit (PDRD) Grant of Rs.9,871 crore for the year 2021-22 to 17 States. The Centre provides the Post Devolution Revenue Deficit Grant to the States under Article 275 of the Constitution. The grants are released as per the recommendations of the Finance Commission in monthly installments to meet the gap in Revenue Accounts of the States post-devolution (of the divisible tax pool of the Centre). The 15th Finance Commission has recommended post devolution revenue deficit grants amounting to about Rs. 3 trillion over the five-year period ending FY26. The number of states qualifying for the revenue deficit grants decreases from 17 in FY22, the first year of the award period to 6 in FY26, the last year. The eligibility of States to receive this grant and the quantum of grant was decided by the Commission based on the gap between assessment of revenue and expenditure of the State.
10. Indian Politics - Covid Update - India reported 3,62,727 new COVID-19 cases and 4,120 deaths in 24 hours, and witnessed a rise in daily cases for the second day. The total number of cases has reached 2,37,03,665, while the death toll has surged to 2,58,317. The Civil Services (Prel.) Exam, 2021 (scheduled to be held on 27.06.2021) was postponed by the UPSC, and will now be held on 10.10.2021. Various states have now extended their local lockdowns by a week or more, as citizens struggle with getting vaccinated. A group of opposition leaders wrote the to the PM, suggesting various steps to mitigate the Covid-19 pain felt across India. At least two Indian states have said they plan to dose their populations with the anti-parasitic drug ivermectin to protect against severe Covid-19 infections as their hospitals are overrun with patients in critical condition. The move by the coastal state of Goa and northern state of Uttarakhand, come despite the World Health Organization and others warning against such measures. India's CJI J.Ramana said the SC has put up a fairly good video-conferencing system for continuing with the adjudication of cases during the pandemic. NUMBERS - INDIA - Total cases: 23,702,832; New cases: 362,406; Total deaths: 258,351; New deaths: 4,126; Total recovered: 19,728,436; Active cases: 3,716,045.

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• SECTION 2 - DAILY CURRENT AFFAIRS

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• 1. ECONOMY (Prelims, GS Paper 3, Essay paper)

2020 - India received $83 billion in remittances

• The story: India story in remittances has continued unabated. In 2020, it received over USD 83 billion, a small drop of 0.2 per cent from the previous year. This was despite a crippling pandemic that devastated the world economy. This data is as per a World Bank report.

• China distant second: China received USD 59.5 billion in remittances in 2020 against USD 68.3 billion in 2019, and was a distant second. In 2019, India had received USD 83.3 billion in remittances.

• India's performance: India's remittances fell by just 0.2 per cent in 2020, the decline being due to a 17 per cent drop in remittances from the United Arab Emirates (UAE), which offset resilient flows from the United States and other host countries.

1. India and China are followed by Mexico (USD42.8 billion), the Philippines (USD34.9 billion), Egypt (USD29.6 billion), Pakistan (USD26 billion), France (USD24.4 billion) and Bangladesh (USD21 billion)
2. In Pakistan, remittances rose by 17 per cent, with the biggest growth coming from Saudi Arabia, followed by the European Union countries and the United Arab Emirates.
3. In Bangladesh, remittances also showed a brisk uptick in 2020 (18.4 per cent), and Sri Lanka witnessed remittance growth of 5.8 per cent.
4. In contrast, remittances to Nepal fell by about two per cent, reflecting a 17 per cent decline in the first quarter of 2020.

• Migration and Development: The World Bank, in its latest Migration and Development Brief, said despite COVID-19, remittance flows remained resilient in 2020. Officially recorded remittance flows to low- and middle-income countries reached USD540 billion in 2020, just 1.6 per cent below the 2019 total of USD 548 billion.

1. The reason remittances have remained strong is that as COVID-19 devastated families around the world, remittances continue to provide a critical lifeline for the poor and vulnerable
2. Remittance inflows rose in Latin America and the Caribbean (6.5 per cent), South Asia (5.2 per cent) and the Middle East and North Africa (2.3 per cent). However, it fell for East Asia and the Pacific (7.9 per cent), for Europe and Central Asia (9.7 per cent), and for Sub-Saharan Africa (12.5 per cent), the report showed.

• What it shows: The strong performance of remittance flows during the COVID-19 crisis has highlighted the importance of timely availability of data. Given its growing significance as a source of external financing for low- and middle-income countries, there is a need for better collection of data on remittances. The resilience of remittance flows is indeed remarkable, helping to meet families’ increased need for livelihood support.
• Outflows: Remittance outflow was the maximum from the United States (USD68 billion), followed by UAE (USD43 billion), Saudi Arabia (USD34.5 billion), Switzerland (USD27.9 billion), Germany (USD22 billion), and China (USD18 billion). Remittances outflow from India in 2020 was USD 7 billion, against USD 7.5 billion in 2019, according to the World Bank.

India April inflation and March IIP report

• The story: Retail inflation (CPI) for April 2021 softened to 4.29 per cent while the Index of Industrial Production (IIP) surged to over 22 per cent for March 2021, mainly on account of low base effect.
• IIP analysis: For the full year, industrial production (IIP) contracted 8.6 per cent in 2020-21 compared to 0.8 per cent contraction in 2019-20. Manufacturing sector output surged 25.8 per cent in March 2021 while mining output expanded 6.1 per cent and power generation grew by 22.5 per cent.

1. The factory output rose sharply on account of low-base effect. The economic activity had come to a halt in the last week of March as the country entered a lockdown to combat the coronavirus outbreak.
2. The low base related to the onset of the nationwide lockdown in March 2020 powered the IIP growth to a high 22.4% in March 2021, led by manufacturing and electricity.
3. The pace of the IIP's expansion in March 2021 was in the middle of our forecast range (17.5-25.0%). Given the low base of the lockdown, it was more meaningful to compare the industrial performance in March 2021 with March 2019, which reveals a mild contraction of 0.5%.
4. The core sector output, which forms 40% of the Index of Industrial Production, expanded by nearly 7% in March on account of low base effect.

• Inflation analysis: Prices rose at a slower pace in April primarily on account of benign food prices. The April figures show a decline from March's 5.52% which was a four-month high but within the RBI's tolerance band of 2-6%. The RBI has projected an inflation of 5.2% for the first half of the current fiscal.
• Base effect: As the lockdown base fades away, the CPI inflation may bounce back to an average of 5.0% in the remainder of H1 FY2022, ruling out the possibility of further rate cuts to support economic activity and sentiment. Since even now, the economic outlook is uncertain in light of the continuing pandemic, the monetary policy stance will remain accommodative for much of 2021. Hardening of commodity prices could add to the input costs and poses a risk at a time when a benign rate scenario would be needed to aid growth.
• Monetary policy: India has extended the 2016-21 Flexible Inflation Targeting (FIT) regime to the next 5 years, i.e. 2021-26. The RBI tries to maintain CPI-based inflation in the range of 4% plus/minus 2%.

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• 2. ENVIRONMENT AND ECOLOGY (Prelims, GS Paper 3, Essay paper

India's landmark Wildlife (Protection) Act (WPA), 1972

• Provisions: As per the 42nd Constitutional Amendment Act, 1976, "Forests and Protection of Wild Animals and Birds" was transferred from State to the Concurrent List.
• Details: The Article 51 A (g) of the Constitution states that it shall be the fundamental duty of every citizen to protect and improve the natural environment including forests and Wildlife. Article 48 A in the Directive Principles of State policy, mandates that the State shall endeavor to protect and improve the environment and to safeguard the forests and wildlife of the country.
• WPA: The Wildlife (Protection) Act, 1972 was enacted for the protection of plants and animal species, and extends to the whole of India except the State of Jammu and Kashmir. Prior to this legislation, India had only five designated national parks, and now there are 101 National Parks.
• Authorities: The Central Government appoints the Director of Wildlife Preservation and assistant directors and other officers subordinate to the Director. The State Governments appoint a Chief Wildlife Warden (CWLW) who heads the Wildlife Wing of the department and exercises complete administrative control over Protected Areas (PAs) within a state. The state governments are also entitled to appoint Wildlife Wardens in each district.

• Salient features:

1. Prohibition of hunting - It prohibits the hunting of any wild animal specified in Schedules I, II, III and IV of the act. Some exceptions are provided. A wild animal listed under these schedules can be hunted/ killed only after getting permission from the Chief Wildlife Warden (CWLW) of the state if: (i) It becomes dangerous to human life or to property (including standing crops on any land), (ii) It is disabled or suffering from a disease that is beyond recovery.
2. Prohibition of cutting/Uprooting specified plants - It prohibits the uprooting, damage, collection, possession or selling of any specified plant from any forest land or any protected area. The CWLW, however, may grant permission for uprooting or collecting a specific plant for the purpose of education, scientific research, preservation in a herbarium or if a person/institution is approved to do so by the central government.
3. Declaration and Protection of Wildlife Sanctuaries and National Parks - The Central Government can constitute any area as a Sanctuary, provided the area is of adequate ecological, faunal, floral, geomorphological, natural or zoological significance. It can also declare an area (including an area within a sanctuary) as a National Park. A Collector is appointed by the central government to administer the area declared as a Sanctuary.
4. Various bodies - The WPA act provides for the constitution of bodies to be established under this act such as the National and State Board for Wildlife, Central Zoo Authority and National Tiger Conservation Authority. Hunted wild animals (other than vermin), animal articles or meat of a wild animal and ivory imported into India and an article made from such ivory shall be considered as the property of the Government.

• Bodies constituted:

1. National Board for Wildlife (NBWL) - As per the act, the central government of India shall constitute the National Board for Wildlife (NBWL). It serves as an apex body for the review of all wildlife-related matters and for the approval of projects in and around national parks and sanctuaries. The NBWL is chaired by the Prime Minister and is responsible for promotion of conservation and development of wildlife and forests. The board is ‘advisory’ in nature and can only advise the Government on policy making for conservation of wildlife.
2. Standing Committee of NBWL - The NBWL constitutes a Standing Committee for the purpose of approving all the projects falling within protected wildlife areas or within 10 km of them. The committee is chaired by the Minister of Environment, Forest and Climate Change.
3. State Board for Wildlife (SBWL) - The state governments are responsible for the constitution of the state board of wildlife. The Chief Minister of the state/UT is the chairperson of the board. The board advises the state government in: (i) The selection and management of areas to be declared as protected areas, (ii) The formulation of the policy for protection and conservation of the wild life, (iii) Any matter relating to the amendment of any Schedule.
4. Central Zoo Authority - The act provides for the constitution of Central Zoo Authority consisting of a total 10 members including the Chairperson and a Member-Secretary. The Environment Minister is the chairperson. The authority provides recognition to zoos and is also tasked with regulating the zoos across the country, and lays down guidelines and prescribes rules under which animals may be transferred among zoos nationally and internationally.
5. National Tiger Conservation Authority (NTCA) - Following the recommendations of the Tiger Task Force, the National Tiger Conservation Authority (NTCA) was constituted in 2005 for strengthening tiger conservation. The Union Environment Minister is the Chairperson of NTCA and the State Environment Minister is the Vice-Chairperson. The Central Government on the recommendations of NTCA declares an area as a Tiger Reserve. More than 50 wildlife sanctuaries in India have been designated as Tiger Reserves and are protected areas under the Wildlife Protection Act, 1972.
6. Wildlife Crime Control Bureau (WCCB) - The act provided for the constitution of Wildlife Crime Control Bureau (WCCB) to combat organized wildlife crime in India, with HQ at New Delhi. It is mandated to: (i) Collect and collate intelligence related to organized wildlife crime activities and to disseminate the same to the State to apprehend the criminals, (ii) Establish a centralized wildlife crime data bank, (iii) Assist State Governments to ensure success in prosecutions related to wildlife crimes, (iv) Advise the Government of India on issues relating to wildlife crimes having national and international ramifications, relevant policy and laws.

• Schedules under the Act: The Wildlife (Protection) Act, 1972 has divided the protection status of various plants and animals under the following six schedules:

1. Schedule I - Covers endangered species that need rigorous protection. The species are granted protection from poaching, killing, trading etc. A person is liable to the harshest penalties for violation of the law under this Schedule. Species under this Schedule are prohibited to be hunted throughout India, except under threat to human life or in case of a disease that is beyond recovery. Some of the animals granted protection under the Schedule I include: The Black Buck, Bengal Tiger, Clouded Leopard, Snow Leopard, Swamp Deer, Himalayan Bear, Asiatic Cheetah, Kashmiri Stag, Fishing Cat, Lion-tailed Macaquem, Musk Deer, Rhinoceros, Brow Antlered Deer, Chinkara (Indian Gazelle), Capped Langur, Golden Langur, and Hoolock Gibbon.
2. Schedule II - Animals under this list are also accorded high protection with the prohibition on their trade. They cannot be hunted except under threat to human life or if they are suffering from a disease/ disorder that goes beyond recovery. Some of the animals listed under Schedule II include: Assamese Macaque, Pig Tailed Macaque, Stump Tailed Macaque, Bengal Hanuman langur, Himalayan Black Bear, Himalayan Newt/ Salamander, Jackal, Flying Squirrel, Giant Squirrel, Sperm Whale, Indian Cobra, King Cobra.
3. Schedule III & IV - Species that are not endangered are included under Schedule III and IV. This includes protected species with hunting prohibited but the penalty for any violation is less compared to the first two schedules. Animals protected under Schedule III include: Chital (spotted deer), Bharal (blue sheep), Hyena, Nilgai, Sambhar (deer), Sponges. Animals protected under Schedule IV include: Flamingo, Hares, Falcons, Kingfishers, Magpie, Horseshoes Crabs
4. Schedule V - This schedule contains animals that are considered as vermin (small wild animals that carry disease and destroy plants and food). These animals can be hunted. It includes only four species of wild animals: Common Crows, Fruit Bats, Rats, Mice
5. Schedule VI- It provides for regulation in cultivation of a specified plant and restricts its possession, sale and transportation. Both cultivation and trade of specified plants can only be carried out with prior permission of competent authority. Plants protected under Schedule VI include: Beddomes’ cycad (Native to India), Blue Vanda (Blue Orchid), Red Vanda (Red Orchid), Kuth (Saussurea lappa), Slipper orchids (Paphiopedilum spp.), Pitcher plant (Nepenthes khasiana)

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• 3. FOREIGN AFFAIRS (Prelims, GS Paper 3, Essay paper)

China Updates

• Chinese influence spending increases: The Chinese foreign agent filings, compulsory for state-linked media in the United States, show a significant rise in spending in 2020 to $64 million, double the 2019 figure and up from just over $10 million in 2016. The filings for Xinhua, China’s official state media agency, say that while the company is owned by the state, it isn’t directed by it. That's a strange claim, given that Xinhua is run by party officials and Xi has repeatedly said media must take its orders from the Chinese Communist Party. The bulk of the reported funding went to CGTN America, a wing of China’s ubiquitous state television station. It’s questionable whether this money buys anything worthwhile: Although CGTN is available in 30 million households, its viewership is likely tiny. Chinese state influence in the United States mostly doesn’t work through obvious propaganda but instead through the gravitational pull of China’s vast market and the possibility of losing access to it. It’s much more significant that Hollywood refuses to touch Chinese human rights issues than that CGTN broadcasts reports no one watches.
• Coronavirus conspiracies: A 2015 text that touches on the use of coronaviruses as bioweapons has received dramatic coverage from some Western media and politicians, including being described as “bombshell documents” in Britain’s Daily Mail. But what is being presented as secret documents is actually a published book purveying a conspiracy theory about the United States being behind the first SARS outbreak in 2002. Although the book’s author is a senior military doctor, Chinese presses regularly turn out similarly paranoid texts.
• China's population statistics published: The Chinese government has finally released its 2020 population figures, showing a slight increase last year. But after recent leaks suggested the population may have declined, the official numbers have a credibility problem—not least because they were delayed for weeks. Even the public figures show a significantly aging population and a critically low birthrate. The statistics have caused populist propagandist Hu Xijin to hint that new government measures to increase births are on the way. What those policies will look like is up in the air. China could offer better financial incentives and child care assistance, or it could restrict abortion and engage in anti-feminist propaganda. Meanwhile, a new report confirms that while birth restrictions were loosened for the Han majority, they were tightened for Uyghurs, leading to a drop in birthrates.
• Fandom crackdown: The Chinese government’s latest target is online fan culture, which it describes as chaotic and disorderly. It’s true that Chinese fan groups, largely devoted to stars or bands, can be extremely dramatic online. But using the power of the state against them is like breaking a butterfly on a wheel. It’s also economically risky: Fandom is a $16 billion industry in China. The authorities have long been nervous about the influence of South Korean pop culture, but previous crackdowns have focused on stars’ images rather than their fans. But one of the underlying causes of these over-the-top campaigns is that the state has built a huge machinery of repression and censorship. With so many people already silenced, it still needs to justify its existence.
• Tesla in trouble in China: Electric carmaker Tesla has seen sales slide sharply in China after a rash of bad publicity and government scrutiny. An April scandal in which a Tesla executive accused an angry customer of being part of a conspiracy against the company caused a public relations nightmare, and Chinese media has run story after story about the company’s issues. Tesla has halted a significant land purchase in China, blaming the state of U.S.-China relations, and may back off from further investments. Owner Elon Musk’s perpetually eccentric behavior probably doesn’t help the company’s image with the authorities, who prefer more clean-cut businessmen.
• Xiaomi strikes deal with U.S.: The controveraial Chinese smartphone manufacturer Xiaomi has been removed from U.S. blacklists, following a series of court battles after the Trump administration listed it as a military-run company. The case was always weak and a little strange, given that Xiaomi isn’t known for its high tech but for its cheap phones and good PR. The move may encourage other Chinese firms to further press their legal challenges to policies left over from Donald Trump’s presidency.
• China grabbing Bhutan's territory: Since 2015, a previously unnoticed network of roads, buildings, and military outposts has been constructed deep in a sacred valley in Bhutan. Experts say China actually doesn’t need the land it is settling in Bhutan: the aim is to force the Bhutanese government to cede territory that China wants elsewhere in Bhutan to give Beijing a military advantage in its struggle with India. Gyalaphug is now one of three new villages (two already occupied, one under construction). This strategy is more provocative than anything China has done on its land borders in the past. The settlement of an entire area within another country goes far beyond the forward patrolling and occasional road-building that led to war with India in 1962, military clashes in 1967 and 1987, and the deaths of 24 Chinese and Indian soldiers in 2020. It violates the terms of China’s founding treaty with Bhutan. It ignores decades of protests to Beijing by the Bhutanese about far smaller infractions elsewhere on the borders. By mirroring in the Himalayas the provocative tactics it has used in the South China Sea, Beijing is risking its relations with its neighbors, whose needs and interests it has always claimed to respect, and jeopardizing its reputation worldwide.

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• 4. GOVERNMENT SCHEMES (Prelims, GS Paper 2, Essay paper)

Covid-19 and India’s $5 trillion economy dream

• The story: Since the decade of 2000s dawned, India was celebrated as a promising growing economic power of the world. As an economic growth engine of Asia, it was considered to be a manufacturing hotspot, one that could replicate the success of China and South Korea. There even was time when the US considered India as a strong defence counter-balance for China, in Asia. And then, Covid happened.
• Modi's dream: From the moment he took power in 2014, India's PM Modi has been an ardent believer in the nation’s capabilities. From the Red Fort, in his independence day speech(es), he pushed for schemes such as Make in India, Stand up India and Startup India. These calls were aimed at boosting domestic manufacturing prowess, providing it with the much-needed impetus to make a mark in the global arena.

• Pandemic 2020: In 2020, as Covid-19 hit industrial hubs across the globe shuttered down and went into a lockdown mode, Modi strongly pitched for ‘make in India, make for the world’. He also made the clarion call for ‘Atmanirbhar Bharat’ (self-reliant India).

1. Modi said, “Our country has plenty of natural resources. It is the need of the hour that we start the value addition of these natural resources and human resources, and to take the country to new heights. How long shall we continue to export raw material to the world? How long will the process of exporting raw material and importing finished goods continue? So, we will have to be self-reliant.”
2. In 2019, Modi also advocated for a $5 trillion economy goal. In consonance with it, the Union Minister of MSMEs, Nitin Gadkari, in December 2020, said that the government aims to increase MSMEs’ contribution to GDP to 50% from the existing 30%. He vowed to increase the sector’s share in India’s total exports to India to 60% from the existing 48%.
3. The second wave of Covid-19 has demolished many assumptions, and raised serious questions on India’s economic aspirations. As the human crisis deepens and now reaches the deepest parts of rural India, the question being asked is how do such lofty economic ambitions square up with dismal public health situation?

• The idea of prosperity: At the core of this debate lies the reasoning that the idea of prosperous a nation is a measure of several things and economic growth of a nation cannot be seen in isolation. The country’s economic ambitions must be aimed at enabling people to live healthily and to live with dignity. Some experts say that the pursuit of a $5 trillion economy needs to be put in the bin and the focus should be on building a real economy.
• The people matter: Looking at the growth stories of economic powerhouses elsewhere, it’s clear that they pay equal attention to the social wellbeing of their citizens. Globally, nations invested heavily in uplifting social and human development of their citizens. In most cases, the economic wellbeing of a nation follows on its own, if social development is taken care of. For India, an important takeaway of the current crisis remains the fact that it has't invested enough in our citizens and this anomaly could have far-reaching ramifications on the nation’s economic health.
• Trickle down versus Build up: Contrary to the trickle-down approach of aggregated economic empowerment, capability building starts with each individual in focus. It's a philosophy that starts from ensuring access to critical life enablers like education, health, nutrition to social security policies for mandating these to support all the way till individuals meet life opportunities in the forms of volunteering, local problem solving, entrepreneurship and income-earning abilities.
• Lessons: The Covid crisis has taught how critical life-essential services are–healthcare, water, air, etc. Therefore, while coming out of Covid, these priorities have to be attended to. Even if our economic engine does well, and these life essentials are not brought to a basic minimum acceptable level, sooner than later, the economic engine will get hit.
• India’s curious case: In recent years, the country has taken rapid strides on the economic front. However, its socio-economic performance, if seen in totality, presents a curious case.

1. India retained its position as the third-largest economy in the world in terms of purchasing power parity (PPP), behind the US and China
2. India also jumped to the 63rd position in the World Bank’s Ease of Doing Business 2020 report
3. It exhibits similar positive performance at Global Innovation Index 2020, where it climbed four spots on the Global Innovation Index 2020 and is now at the 48th position in the list of top 50 innovative countries
4. But India, home to 1.3 billion people, is ranked 94 among 107 nations in the Global Hunger Index 2020 and is in the ‘serious’ hunger category. The UNDP’s Human Development Indicators puts India at 131 out of 181 countries, with 34.7% of children facing malnutrition, stunting (% under age 5). Similarly, the fifth National Family Health Survey (NFHS-5) for 2019-20 shows malnutrition among children has risen in India over the last five years. The period of the survey was before Covid-19 and the fear now is that the situation could have worsened alarmingly.

• India is different, so should be its solutions: Establishing a world-class public health infrastructure remains critical to achieving any long-term economic vision for India. Covid hit India where it was the weakest, i.e.; health care system. India's health care system was always fragile and under-invested over the decades, with governments investing about 3.5% of our GDP in it.
• Summary: India needs to do much better on social and human indicators, and those need economic growth. It is not a luxury, but the only option to improve our lives. India needs to commit resources for the next 10-15 years and continue building irrespective of who is in power. India's strategic priorities cannot be misplaced any more, otherwise it will keep bouncing back to being a vaccine importer, from being a vaccine exporter doing "Vaccine Maitri".

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• 5. POLITY AND CONSTITUTION (Prelims, GS Paper 2, GS Paper 3)

Centre–State relations in Covid time

• The sstory: When we discuss Centre-State relations in Indian context, what comes to mind are terms like the Finance Commission, cooperative federalism, bargaining federalism or quasi-federalism, and so-called 'Team India'.

• Real nature: Mostly, Indian federalism has been conflicting rather than cooperative, which is at times reflected in the behaviour of central government being discriminatory towards states with opposition governments. In pandemic time, the tussle between Union & states over vaccine distribution, oxygen supply, availability of life-saving medicines show how deep the fracture has become.

• Federal issues:

1. Federalism that seems inconvenient - Since the Central government was the sole agency regulating the production and distribution of the vaccines and oxygen, it was its exclusive responsibility to ensure adequate and judicious distribution. But many states complained of discrimination. The new vaccination policy, in the garb of relaxing controls, sought to almost pass the burden on to the states as it makes the states responsible to procure vaccines directly from the producers and allows for differential price-setting. The result was floating of state-wise global tenders for vaccines procurement, a very unpleasant situation.
2. Centralisation of pandemic powers - The centre invoked the Epidemic Diseases Act and the Disaster Management Act, centralising the powers to deal with the pandemic. That may not look wrong at first sight, but consulting the states in a vast nation like India is not only a legislative mandate cast upon the centre under these acts, but also a wise thing to do. The binding COVID-19 guidelines issued by the Centre to the States requires full cooperation, after all.
3. Rural India hit - The first wave of Covid-19 in 2020 witnessed the mass exodus of the migrant workers into their home states like Uttar Pradesh, Bihar, Jharkhand, etc. As these workers again started reverse migrating to their home states, news that Covid-19 had entered rural India hit headlines. The sustenance of agricultural, industrial and construction activities would be difficult in the absence of a majority of the workforce in the backdrop of the lifting of restrictions.
4. Financial troubles - Since 2018, when the Indian economy's GDP growth started slowing down, the states were hard-pressed as the promised GST compensation amounts (a solemn promise by Centre) never materialised. The large states were left with deficits of thousands of crores of rupees, and minor amounts kept trickling in, after lot of protesting. Kerala even went to the Supreme Court against the Centre, on this issue. The pandemic totally crushed any hope of immediate relief, and states were further pushed to the brink. It is important to honour the promises made, else the federal system will creak. Luckily, since October 2020, the monthly GST collections have been upwards of Rs.1 lakh crore mark.

• What to do now: The relaxation of limits imposed by the FRBM Act, regarding the market borrowings by the states, was a step in the right direction. These borrowings can be backed by sovereign guarantee by the Union Government. The Union government can also provide money to states so that they can take necessary action to deal with the crisis at the state level. A successful approach to tackle the crisis would still need Centre’s intervention and guidance in a facilitative manner, where the Centre would communicate extensively the best practices across states, address the financial needs effectively, and leverage national expertise for scalable solutions. Management of disasters and emergencies (both natural and manmade) should be included in the List III (Concurrent List) of the Seventh Schedule. The government should consider making the Inter-State Council a permanent body.

• Summary: To manage and lead a vast and commplex nation like India, the leadership at central level needs to adopt a hugely accommodative approach, with a no-confrontation attitude. Cooperation and mutual understanding will help states deliver services to their citizens far better. For now, the urgent challenge is to arrange for vaccines.

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• 6. SCIENCE AND TECHNOLOGY (Prelims, Various GS Papers)

Space mania and SPAC mania

• The story: The space-tourism venture Virgin Galactic reported first-quarter earnings six days after it originally intended, following the Securities and Exchange Commission’s statement that some special-purpose acquisition companies, or SPACs, have improperly accounted for warrants. Redoing the numbers resulted in an extra $49 million expense, which made Virgin’s losses look steeper. However there was no drain of cash. Investors mesmerized with the final frontier (SPAC or Space!) should be worried about regulators’ eagerness to cool the SPAC market. New issues have slowed to a trickle, though this could be in part due to broader financial trends, or a hangover from the record $103 billion already raised so far.
• SPACs: These are public investment vehicles that raise funds to acquire a private company, and have become a shortcut to listing for glamorous ventures with few revenues but bold forecasts. Electric vehicles have been a popular theme, but the industry arguably most revolutionized by the financing fad is space.

1. Before 2019, investors had no clear way to embrace their cosmic dreams. Space businesses were either part of big conglomerates such as Boeing and Lockheed Martin or, more recently, private firms owned by billionaires, such as Elon Musk’s SpaceX or Jeff Bezos’ Blue Origin. Crucially, insiders had no easy way of getting out, making space startups even riskier.
2. This changed when former Facebook executive turned SPAC investor Chamath Palihapitiya acquired Virgin Galactic, a brainchild of British billionaire Richard Branson. Amateur traders quickly embraced a company that aims to charge $250,000 for a few minutes of weightlessness in the lower thermosphere. Case in point: The stock hit new highs during the GameStop market craze in February.

• New birth: Virgin paved the way for a new ecosystem. Space SPACs kept emerging, including one chaired by former Boeing chief executive Dennis Muilenburg. New targets are launch specialists Rocket Lab and Astra, satellite-data analytics firms BlackSky and Spire Global, and Momentus, a “last mile delivery" service for spacecraft. SEC wants SPACs to return money to shareholders if they don’t complete deals within a set time frame.
• Future of space: Some forecast that space can become a trillion dollar market in 30 years’ time, but this is science fiction. While Virgin’s business model is feasible on paper, it faces vast challenges. Launching satellites is a promising area, but valuations above $2 billion for a startup seem very inflated. As for plans to mine asteroids, they are quite a long leap of faith. So, regulators are right to worry that SPACs have opened a door to wild speculation.

Covid virus's B.1.617 strain in India

• India's variant: Scientists are trying to understand the exact nature of risk posed by a coronavirus variant known as B.1.617, which the World Health Organization (WHO) on 11-05-2021 designated a global “variant of concern", or VOC.
• What WHO said: The WHO said that preliminary studies shoed the variant may spread more easily than other strains of the new coronavirus. The record-setting surge of Covid-19 cases that overwhelmed India’s healthcare system in April and May, and the risk the variant poses to the rest of the world, was under a scanner. India regularly reported more than 3,50,000 for days together.

• Details of the B.1.617 variant:

1. The variant, identified in October 2020, is a mutant form of the virus that causes Covid-19. It has 13 mutations, including two notable ones in the spike protein that the virus uses to attach to and infect cells.
2. One of the mutations, E484Q, is similar to one that is common to the variants identified in South Africa and Brazil. In those variants, the mutation seems to make the virus better at evading the body’s immune responses. The other, known as L452R, is also found in the dominant strain in California, and may boost viral transmission.
3. The two mutations are in really important parts of the structure of the spike protein, and important for the interaction of the virus with the host. Scientists are also looking into a third mutation, P681R, which might help the virus replicate more quickly.

• How contagious: One version of the variant is at least as transmissible as a highly contagious variant known as B.1.1.7. That variant has spread around the world after it was first identified in southern England in 2020. Some scientists aren’t sure the virus spreads more easily. Even the out of control and devastating pandemic in India may not be entirely due to this new variant.
• Existing vaccines: Scientists are investigating and a study documented a cluster of B.1.617 infections in Indian healthcare workers who had been vaccinated with the shot developed by the University of Oxford and AstraZeneca PLC. Studies showed antibodies elicited by the vaccine developed by Pfizer Inc. and BioNTech SE were slightly less effective at neutralizing B.1.617 than other variants. Even if research confirms the B.1.617 variant is more likely than other variants to cause infection in people who have already been vaccinated, vaccines should nonetheless be effective at preventing severe illness and death. Researchers have reported that a vaccine developed by Indian drugmaker Bharat Biotech, which is being rolled out in India, appears to be effective against B.1.617.
• US situation: At least 350 cases of the B.1.617 variant have been reported in the U.S. To limit the variant’s spread, the U.S. has suspended most travel from India to the U.S. The Centers for Disease Control and Prevention stipulates that all U.S.-bound air travelers have proof of a negative Covid-19 test administered no more than three days before arrival.

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• 7. SOCIAL ISSUES (Prelims, GS Paper 2)

A third wave that may target kids, is arriving - Prepare

• What virologists say: India’s virologists now predict that a third Covid wave is likely to attack children in India, predominantly. The Maharashtra government has created a task force to manage Covid-infected sick children during the third wave.
• Logic: The logic is that since most adults are already infected or immunised, the virus will find new hosts. The Covid virus mutates to attack as many new hosts as possible. During the first wave, Covid attacked mainly the elderly and spared youngsters. The second wave is attacking a large number of young breadwinners. The third wave is likely to attack children, since most adults are already infected or immunised.
• Problem with vaccines: Children under the age of 18 cannot be vaccinated. As a result, the only host left for the virus to attack will be children, and India has 165 million who are less than 12 years old. Even if we assume that just 20% of them get infected and 5% of the infected need critical care, India needs 1.65 lakh paediatric ICU beds. Today India is struggling with about 90,000 ICU beds for adults and less than 2,000 beds for children.
• How kids are different: Children are not miniature adults. Unlike adults, a two-month-old baby in the Covid ICU without one of the parents is unthinkable. So the young mothers or fathers of children have to be sent to Covid ICUs, only after vaccination. Unlike adult Covid ICU patients – who are left to be managed entirely by nurses and doctors – infants and small children cannot be left in the ICU without their parents.

1. Mothers need to breastfeed their babies, and someone should be there to ensure that the baby doesn’t throw the oxygen mask.
2. In cardiac ICU, most kids are partially sedated, and when they are fully alert, doctors send them to the ward. In the Covid ICU doctors cannot sedate the child; they need to breathe well to maintain oxygenation.
3. That means India needs to quickly vaccinate all the parents of young children with two doses. The targets should be to vaccinate at least 300 million young parents in the next few months. The good news is that vaccination protects.

• Practical issues: Today, the market price for the first dose of vaccination is between Rs 800 to Rs 1,500. So Rs 3,200-6,000 for two doses for both parents from working-class and low-income families is very expensive. For affordable vaccination, the government should negotiate with Indian and foreign vaccine manufacturers for 300 million vaccines and pay them in advance to deliver in record time. Any vaccine used on millions of patients anywhere in the world should be accepted without regulatory hurdles.

1. Once the delivery date is confirmed, the health ministry should distribute 70% of the vaccines to the private sector and 30% to public hospitals to vaccinate 300 million young parents in just one month.
2. This can be accomplished only with the active participation of the private sector, which has the flexibility to run services 24x7.
3. For example, if the government delivers the vaccine for Rs 500, most big and small hospitals will agree to charge Rs 100 or 150 for the injection as a service to society. Today, most of the parents will be willing to pay Rs 500 for the vaccine, and the cost of injection of Rs 100 or 150. It can also be sponsored by corporates and philanthropists. Once the parents are immunised, the chances of the children getting infected go down significantly.

• Other constraints: Many hospitals are acutely short of nurses and doctors. It’s not uncommon for two nurses at night to manage an ICU filled with over 20 sick Covid patients on oxygen and ventilators. That cannot happen in a paediatric Covid ICU. Parents will insist on constant attention from nurses. If the family is not happy with the medical care, and God forbid something happens to the child, there will be serious consequences for the medical staff, which results in attrition.

1. India needs to prepare an army of young nurses and doctors on standby to move from one city to the other based on the Covid wave, to support busy hospitals. This cannot happen unless these doctors and nurses are given grace marks for various entrance and exit exams. Money will not motivate young doctors and nurses to work in a Covid ICU, risking their life.
2. The production of drugs and disposables used for children in the ICU, starting from Crocin syrup to oxygen masks, should be enhanced to prevent a repetition of the struggle for oxygen and remdesivir. We need to procure a large number of ventilators that can ventilate newborn babies quickly.

• Summary: India actually has a window of opportunity, that must not be wasted at all.

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• 8. MISCELLANEOUS (Prelims, GS Paper 1, GS Paper 2)

Bitcoin plunges 17% on Elon Musk tweets

1. The story: Many have pilloried the Bitcoin cryptocurrency over the years, stating it's not real value but pure speculation. The sudden spikes and falls in its value is cited in support of such claims. Such naysayers had a field day in May, when the price of the world's largest cryptocurrency dropped from around $54,819 to $45,700, in just under two hours following a tweet by Elon Musk.
2. From evangelist to destroyer: Elon Musk had once said he would like to see Tesla's cars being bought by customers using Bitcoin. That tweet itself fuelled a mini-rally some months ago. Musk is widely seen by crypto investors as a cryto evangelist. But now, Bitcoin plunged as much as 17% after Musk tweeted that his firm Tesla Inc. had stopped accepting bitcoin to purchase its vehicles. He said this was due to climate concerns related to the huge electricity consumed by Bitcoin mining process.
3. What he siad: Musk wrote "We are concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel."
4. Anger: Tesla's announcements earlier this year that it had bought $1.5 billion of bitcoin and that it would accept it as payment for cars has been one factor behind the digital tokens' surging price this year. Musk added that the Tesla would not sell any bitcoin and would resume accepting bitcoin as soon as mining transitioned to more sustainable energy. But many crypto investors were upset at this sudden turn of events, as they lost value in portfolios.

Offshore Vineyard wind project

1. The story: The "Vineyard Wind Project" is the first major Offshore wind farm to power 4,00,000 homes. It aims to install 84 turbines in the Atlantic Ocean, and will be set up 12 Nautical miles off the coast of Martha’s Vineyard.
2. Details: This project is capable of producing 800 MW of electricity, and its layout is $ 2.8 billion. There are two major wind farms in the US, located off the coasts of Rhode island and Virginia. The size of Vineyard project is larger. Apart from the Vineyard project, there are a dozen of offshore wind projects planned along the East Coast.
3. Capacity: When all the projects are installed, more than 2,000 turbines will be churning the wind energy along the coast between North Carolina and Massachusetts. The US Administration has pledged to build 30,000 MW off shore wind projects by 2030, and the White House will allocate $ 12 billion of capital investments to achieve this. These steps will support 77,000 direct and indirect jobs.
4. Technicals: The electricity generated by the Vineyard Project will travel through cables buried six feet below the ocean floor. It will be taken to Cape Cod. The project is to start delivering electricity by 2023.

Pacific football fish

1. The story: A "Pacific Football fish" individual was washed ashore on a Californian coast in USA. It is usually found in deep sea. Black in colour, it is usually addressed to as “Monster looking fish”. It is rare to find the fish near the coast or washed away in coastal areas as they live in deep seas.
2. Details: This fish is usually 60 centimetres in length, and only females have bioluminescent tips that are used to hunt prey in the darkness of water that is 3,000 feet deep. With large teeth, their large mouths are capable of swallowing prey that is the size of their own body. The Five Deeps Expedition found that aquatic life is present even at 11,000 metres, in the Mariana Trench of Pacific Ocean. Mariana Trench is the deepest point in the world.
3. Bioluminescence: It refers to the production and emission of light by a living organism. It occurs in vertebrates, invertebrates, bioluminescent bacteria and terrestrial anthropod. This bioluminescence involves a light emitting molecule called luciferin and an enzyme called luciferase. The Enzyme catalyses oxidation of luciferin.
4. IUCN listing: It is listed under Least Concern in IUCN list of threatened species. It is called a monster as males latch onto the females with their teeth and become “sexual parasites”. Eventually they coalesce (come together to form one mass or whole).

HPIV - Human Para Influenza Viruses

1. The story: Scientists found a new way to block the attachment of HPIV (Human Para Influenza Viruses). The HPIV is the leading cause of death in childhood respiratory infections. More than 30% to 40% of children die due to respiratory illness.
2. Details: The HPIV latches on to the cells and injects genetic materials into the cells. This is done so that the genetic material injected starts making new viruses. The scientists have now found a way to block this entry. This method is highly efficient in blocking HPIV-3.
3. How blocked: The virus uses a specialised fusion proteins that resembles three sided corkscrew to enter human cells. Earlier cholesterol and beta amino acids were found to block the HPIV. However, they were not efficient. The scientists have now created a new peptide combining the previously found cholesterol and beta amino acids. The Gellman lab discovered that modified beta amino acids containing peptides can block the viruses. The Moscona Protto lab earlier hooked the peptide to a molecule of cholesterol. This created a greasy cell membrane that blocked the virus. When the above two methods were combined, the anti-viral efficacy tripled.
4. Peptides: These are short chain of amino acids. They are connected with one another in a sequence of peptide bonds. They are distinguished from proteins by shorter length. Peptides help human body to fight against microbes.
5. HPIV: It is a single stranded RNA virus, with different strains like - HPIV Type 1: Most common cause of croup; HPIV Type 2: Causes croup and also lower and upper respiratory tract illnesses; HPIV Type 3: Associated with Pneumonia and Bronchiolitis; HPIV Type 4: Includes subtypes 4a and 4b. "Croup" is the swelling inside trachea. It interferes with normal breathing.

9.1 Today's best editorials to read

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• SECTION 3 - MCQs (Multiple Choice Questions)

Solve the online quiz given, right now. Check scores, and relative performance!

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