Editorial Simplified : 19th April

//Editorial Simplified : 19th April

Editorial Simplified : 19th April

Editorial Simplified : 19th day of April 2016

This Series of posts covers the essential Editorial from prominent newspapers. The Editorial from the newspapers are compiled by the Subject Teachers form the Academy and provided in notes format so that the aspirants does not waste their precious time in sifting through the newspapers. 

The aspirants are advised to bookmark this page for future reference 

Click on the tab below to read the Editorial Simplified for each newspaper

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[accordion_content accordion_label=”Business Standard”]

Editorial : Backward on trade

Context :

India is lagging behind in negotiations on various international multilateral platforms. Like WTO, TPP or RCEP. It needs to catch up as discussed in the article.

What India should be doing :

  • India could be among the biggest gainers from multilateral trade negotiations.
  • It must also try to adapt itself to the new order of bilateral or regional trade agreements.

What is India’s status presently  :

  • India has been left out of the TPP.
  • It is showing little willingness in approaching talks at the Regional Comprehensive Economic Partnership, or RCEP.

What is RCEP :

  • It includes
    • Members of ASEAN (Association of South East Asian Nations)
    • Countries with which India already has a free trade agreement
      • Australia, China, India, Japan, New Zealand and Korea.
    • That is, RCEP = ASEAN+6

But does free trade lead to revenue loss to the government :

  • Commerce ministry estimates that lower tariffs might reduce government revenue by 1.6 per cent of gross domestic product or GDP.

So, can India ask other countries to forego similar revenues :

  • This would be quite absurd.
  • ASEAN countries have long ago sacrificed tariff revenue by lowering their rates.

What can govt do?

  • India has cheaper-labour than China, deficits in infrastructure and other measures of competitiveness must be addressed.
  • India must negotiate technicalities like harmonising regulations and phytosanitary conditions.

Editorial : A real game changer

Context :

Launch of UPI (Unified Payment Interface). That has the potential to replace cash.

What is UPI :

  • The Unified Payment Interface (UPI) could help micro-payments.
  • Which are up till now made by cash.

Who is handling all this :

The NPCI (National Payments Corporation of India), an organisation set up by RBI and commercial banks.

How does it work :

  • NPCI has released a simple app.
  • Using a smartphone, Aadhaar number and a bank account one can create an account.
  • A unique “virtual UPI ID” associated with that bank account will then be created.
  • This virtual ID could be used to transfer or receive cash from any other UPI ID.
  • Payment portal would be up 24×7.

 What will be UPI’s benefits :

  • It would hugely simplify and speed up processes.
  • There would be no need to share sensitive details like the PAN, bank account numbers, credit card details or any other details to enable a UPI transaction.
  • Easier Cash-on-delivery for e-commerce deals.
  • Micro-payments like paying an autorickshaw or a taxi, a road toll payment, sharing a restaurant bill, etc.
  • No need to carry large sums of cash
  • No risk of credit-card theft.
  • Tax authorities will get data from many small transactions.
  • A reduced need for actual cash in the economy.

 What are the possible improvements required :

  • The back-end needs to be extremely secure
  • Encryption standards must be very robust.
  • Proper authentication is a must
  • Databases must be effectively defended against data theft.
  • Preventing UPI accounts being looted by cell-phone thieves.

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[accordion_content accordion_label=”Indian Express”]

Editorial : Nitish calculator

Context :

Nitish Kumar, CM of Bihar, gave a call to all non BJP parties to come together to defeat BJP in 2019 elections to save democaracy

History Repeating itself :

Ram Manohar Lohia gave a similar war cry albeit against congress in 1960s; internal contradiction of forced partners did not damage congress much then

Anti-BJPism Not Enough :

  • Apart from BJP and Congress, influence of most parties is limited to one or two states; local factors prevent state specific alliance to take off at national level
  • Alliances have become alliances of convenience rather than ideology; partners in one state can be bitter foes in other
  • South Indian states of Telengana, Andhra and Tamil Nadu have primacy of regional parties not having particular dislike of BJP
  • Even the ‘Mahagantbandhan’ of Bihar met with limited success elsewhere
  • Any electoral victory primarily needs a backing of better governance rather than mere anti ruling party sentiment

Editorial : Lessons of thirst

Context :

Union Minister, Nitin Gadkari, who hails from drought hit Vidarbha region of Maharashtra, has said that ruling party of state was not prepared for the drought which is illustrated by comparative low spending on irrigation projects

‘Spending’- A Remedy?

  • Lesser spending might be a problem to start up with but even large spending on irrigation projects proved to be ‘illusory’ in the past
  • Earlier high spending results show that there was no net increase in irrigated area in the region

Way Out :

  • Money allocated is different from money utilized effectively; gap between irrigation capacity created and irrigation capacity utilized needs to be bridged
  • Periodic de silting and maintenance of canals
  • Water use has to appropriately priced to reflect the scarcity and promote judicious use; otherwise farmers won’t invest in water saving technologies
  • Govt should incentivize the crops ideal for areas lacking water

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[accordion_content accordion_label=”The Hindu”]

Editorial :  Grounding Vijay Mallya

Context :

Vijay Mallya the liquor baron had taken a loan of about Rs 9000 crore and is now a defaulter. The Indian authorities are trying their best for justice to be done in the situation.

Important points :

  • The Ministry of External Affairs has now cancelled Mallaya’s diplomatic passport for not paying importance to summons for appearing in court. 
  • Mr Mallya is also accused of laundering Rs 900 crore loan from IDBI Bank.
  • Mr Mallaya’s elbow room is shrinking, his legal battles are closing in.
  • Mr Mallya has challenged the fact of being a wilful defaulter by arguing that he never borrowed personally. 

Conclusion : 

  • If Any credibility is to be attached to his defence it will be after his submission to due process. 
  • The editor suggests the Central Government must not ease the pressure on him and must take all possible steps to bring him back to the country. 

Editorial : Are negative rates the new normal?

Context :

The global economy has been really sluggish in recovery. This editorial examines the situation.

Important points :

  • At the Spring Meeting of World Bank and International Monetary Fund (IMF) it was agreed that there should be agreement on on atleast avoiding the strategies that hurt global progress. 
  • China’s slow growth since 2009, low global commodity prices and the uncertainty of Britain continuing in European Union have contributed immensely to global negative sentiment. 
  • Currently an experimental approach of negative nominal interest rates has been followed by 6 Central Banks in the world.
  • Proponents of negative rate see it as a stimulus to spending for consumers and lending for banks thereby spurring economic growth.
  • Individual savers would however have to save more or hold on to cash for meeting long term targets. 
  • A sizeable ageing population in Japan , Germany etc is also hailed as an economic problem.

Conclusion :

  • While emphasising the potential to create stimulus in the economy the IMF is tentative about longevity of negative rates.
  • Group of 20 countries recently agreed to refrain from competitive devaluation.
  • According to the editor  the agenda for negative rates  would soon come up for concerted action.

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By | 2016-04-19T20:00:24+00:00 April 19th, 2016|Categories: Editorial Simplified|Tags: , , , |0 Comments

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