Editorial Simplified : 21st June

//Editorial Simplified : 21st June

Editorial Simplified : 21st June

Editorial Simplified : 21st Day of June 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

The Hindu

Editorial : The Centre’s big reform push

Context

The editorial deals with the recent easing of Foreign Direct Investment (FDI) norms in India.

Why the reform now?

  • India is now acknowledged as the fastest growing large economy across the world.
  • India has also now improved its ranking in the ease of doing business list.
  • Thus time was ripe to open FDI gates and give further push to growth.

What has been done

  • The Central government has raised FDI caps in certain sectors. eg airlines from 49% to 100%
  • Preconditions in certain sectors have been diluted. eg sourcing norms eased in single brand retail.

Why FDI and not FPI

FDI is stickier than its counterpart Foreign Portfolio Investment which tends to be much more opportunistic and short lived.

Analysis of reform

  • Merely opening up the gates will not automatically lead to investment rush.
  • Experience suggests investment in New sectors will be tied to following factors:
    • Foreign investors like others are Return On Investment(ROI) focussed. Thus booming sectors like DTH television are likely to attract more investment.
    • Frequent Market and pricing interventions by the government might discourage investors.
    • Foreign investors committing long term funds always try to exercise control over entities they fund. These need to be handled especially in sectors like insurance.

Conclusion

  • There is no disputing the fact that FDI reforms is a step in the right direction.
  • But as learnt in the past the devil is usually in the detail.

Editorial : Olympics in the time of Zika

Context

The next edition of Olympic games is to be held in Brazil, a country reeling under Zika menace. The editorial contemplates the precarious situation.

Important points

  • WHO has confirmed that the Olympics will go ahead, the Zika virus notwithstanding dye to following reasons:
    • The games are scheduled for August, a mid-winter month in Brazil. Thus mosquito population is expected to drop sharply.
    • Intensive vector control measure in and around the venue will reduce transmission risks.
    • There might be a few infected individuals but the risk of amplification of global spread is negligible.
  • The onus is now on Brazil to ensure effective mosquito control.

The precautions required

  • Zika has been found to be transmitted through blood, mothers foetus and even through intercourse.
  • The WHO has thus asked pregnant women to refrain from travelling to Brazil.
  • WHO has also recommended people returning from Brazil should consider abstinence or adopt safe sex for about 6 months post return.
  • India needs to ensure effective precautions as the vector Aedes aegypti is widely prevalent in India and chances of virus becoming endemic are high.

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By | 2016-06-23T06:25:37+00:00 June 23rd, 2016|Categories: Editorial Simplified|Tags: , |0 Comments

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