DNA 23Rd August 2019

Summary of Daily News Analysis - by Jatin Verma 23rd August, 2019

https://www.jatinverma.org Page | 1

Important News Articles (Taking Delhi/Noida edition as the base) Page 1: Macron: no space for third party mediation in Kashmir Page 1: Trump suggests India should fight Islamic State in Afghanistan Page 1: Rajasthan’s free medicine scheme gets first rank Page 9: SC refers Oxytocin ban to larger bench Page 10: New norms Page 10: Increasing investment to stimulate growth Page 13: FATF Asia-Pacific Group may blacklist Pakistan Page 13: India-U.S. 2+2 meeting being held in California Page 14: Crucial talks between the US and Taliban begin in Doha Page 15: Rupee hits eight-month low Page 15: Tax holiday only for start-ups with turnover up to ₹25 crore

Page 1: Macron: no space for third party mediation in Kashmir

• Prime Minister Narendra Modi and French President Emmanuel Macron discussed the government’s move to suspend Article 370 in Jammu and Kashmir and split the State into two Union Territories. • Mr. Macron said France would support any policy that would give the region “stability”, adding that no one should “provoke violence” there. • Upcoming G7 summit will be hel d in Francewhere India has been invited as a special guest. • PM Modi also said India looks forward to the first delivery of the Rafael fighter jets in September. • G7 is a term that is used to describe the Group of Seven. This is a group of seven countries that have the largest and most advanced economies in the world. These are the most industrialized nations in the world.  This year, the 45th G7 summit will be held on August 24-26, 2019, in Biarritz, France.  It will focus on fighting income and gender inequality and protecting biodiversity. Seven members of G7 1. France 2. Italy 3. Japan 4. Germany 5. Canada 6. United States 7. United Kingdom  The European Union is also represented at the G7 summit.

What does the G7 do? • The group has expanded its brief to cover a large number of international issues, including energy security, trade, climate change, global health issues, gender equality, poverty - and any other topic the country holding the G7 presidency chooses to put on the agenda. • Today, the G7 are reckoned as the seven wealthiest and most advanced nations in the world because China, which holds the second largest net worth in the world, nonetheless has a low net worth per individual and an economy that has not yet fully modernized.

Prelims question Which of the following is true regarding G7 Summit? 1. It’s held between US, Canada, UK, France, Germany, Japan and Italy 2. The 44th G7 summit was held in Tokyo, Japan 3. The summit is held to discuss the burning issues happening around the globe a) Only 1 b) 1 and 2

c) All three are correct d) 1 and 3 are correct

Page 1: Trump suggests India should fight Islamic State in Afghanistan • U.S. President Donald Trump named India as one of the countries that ought to be fighting the Islamic State (IS) in Afghanistan. • He also appeared to suggest that Russia, Iran, Turkey, Afghanistan and Pakistan were countries that should be fighting the IS in Afghanistan. • Mr. Trump had said the U.S. would not completely withdraw from Afghanistan but “always have intelligence [in Afghanistan]. • The U.S. is currently negotiating an agreement with the Taliban to end the war in Afghanistan. • The process has been criticised for side-lining the Afghan government and prioritising the withdrawal of some 14,000 U.S. troops over building a peace that can withstand the complex political realities of the situation.

ISIS • ISIS (Islamic State of Iraq and Syria), also known as ISIL (Islamic State of Iraq and the Levant), is a Sunni jihadist group with a particularly violent ideology that calls itself a caliphate and claims religious authority over all Muslims. It was inspired by al Qaida but later publicly expelled from it. • It has now been defeated altogether but it is gaining strength in Afghanistan.

Mains question: Q) Examine the causes of rapid and violent rise of the Islamic State (IS).

Page 1: Rajasthan’s free medicine scheme gets first rank [GS2: Govt. welfare schemes]

• The National Health Mission has given first rank to Rajasthan among 16 States in the implementation of its flagship free medicine scheme. • The performance of States was assessed on the basis of parameters such as stock of drugs, value of drugs about to expire and compliance with the drugs and vaccine distribution management system.  What is the Chief Minister’s Free Medicine Scheme? • The scheme provides commonly-used essential medicines free of cost to patients visiting government healthcare institutions. • The scheme consists of two components — free medicine and free tests.

• While the Free medicines scheme was implemented on October 2, 2011, the free test scheme was introduced on World Health Day – April 7 – in 2013. • To implement the scheme, Rajasthan Medical Services Corporation Limited (RMSCL) was incorporated on May 4, 2011, as a Public Limited Company

About National Health Mission (NHM)

• National Health Mission (NHM) (Ministry of Health & Family Welfare) was launched by the government of India in 2013 subsuming the National Rural Health Mission and National Urban Health Mission. • It was further extended in March 2018, to continue till March 2020. • The main programmatic components include Health System Strengthening in rural and urban areas for – 1. Reproductive-Maternal 2. Neonatal-Child and Adolescent Health (RMNCH+A) 3. Communicable and Non-Communicable Diseases. • The NHM envisages achievement of universal access to equitable, affordable & quality health care services that are accountable and responsive to people's needs. • The National Health Mission seeks to ensure the achievement of the following indicators: -  Reduce MMR to 1/1000 live births  Reduce IMR to 25/1000 live births  Reduce TFR to 2.1  Prevention and reduction of anemia in women aged 15–49 years  Prevent and reduce mortality & morbidity from communicable, non- communicable; injuries and emerging diseases  Reduce household out-of-pocket expenditure on total health care expenditure  Reduce annual incidence and mortality from Tuberculosis by half  Reduce prevalence of Leprosy to <1/10000 population and incidence to zero in all districts  Annual Malaria Incidence to be <1/1000  Less than 1 per cent microfilaria prevalence in all districts  Kala-azar Elimination by 2015, <1 case per 10000 population in all blocks

GS2, 2018 Q) Appropriate local community-level healthcare intervention is a prerequisite to achieve ‘Health for All ‘in India. Explain.

Page 9: SC refers Oxytocin ban to larger bench

• The Supreme Court referred the matter to a larger bench to decide on whether it would be in public interest to impose a ban on private companies to manufacture the controversial but life-saving drug Oxytocin and restrict its manufacture to a single public sector undertaking. • The health ministry had in April 2018 notified a ban on private drug manufacturers from producing Oxytocin. • The government had restricted its imports and decided to confine manufacturing to Karnataka Antibiotics and Pharmaceuticals Ltd, a government company. • However All India Drugs Action Network (AIDAN) resisted the move to regulate the lifesaving drug and approached the court. • Manufacturers were of the view that availability will be severely hit if the government allows only one manufacturer to make it. • Oxytocin is included as a lifesaving drug in the National List of Essential Medicines (NLEM).

The issues

• The twin issues which arise for consideration are 1. the unregulated and clandestine manufacture of the drug Oxytocin, which is reportedly misused in milch animals 2. The continued supply of an essential lifesaving drug, which is used as the first line drug for prevention and treatment of postpartum haemorrhage at the time of childbirth. • Oxytocin, is a uterine stimulant hormone, prescribed for the initiation of uterine contractions and induction of labour in women, as well as stimulation of contractions during labour. • It is also used to help abort the foetus in cases of incomplete abortion or miscarriage, and to control bleeding after childbirth. • It may be used for breast engorgement. However, it is also used widely in the dairy industry, agriculture and horticulture to boost production. • It will also decide the scope of the powers of the Central government under Section 26-A of the Drugs and Cosmetics Act and the rights of the persons, who are engaged in business of manufacture and sale of drugs specified under the Drugs and Cosmetics Act read with Essential Commodities Act.  Drugs And Cosmetics Act  It regulates the import, manufacture and distribution of drugs in India. The primary objective of the Act is to ensure that the drugs and cosmetics sold in India are safe, effective and conform to prescribed quality standards.  The Act has been further amended as Drugs (amendment) Act 1964 (13 of 1964) to include Ayurvedic and Unani drugs.  Issues with the act

 The Act lacks specific penalties for violating provisions relating to clinical trials. As a result, no penalties could be imposed on the Bill and Melinda Gates Foundation funded Programme for Appropriate Technology in Health (PATH) for violating norms in conducting the HPV vaccination trials on tribal girls in Andhra Pradesh and Gujarat. • Whether it would be in public interest to restrict the manufacture of a life-saving drug for domestic use, to a single public sector undertaking, to the complete exclusion of the private sector companies, particularly in view of the high maternal mortality rates in the country? • The larger bench will also decide on whether the Centre's notification has resulted in creating a monopoly in favour of public sector companies, to the complete exclusion of private sector companies". • It needs to be decided whether the nature of powers exercised by the Central government under the provision of the Drugs and Cosmetics Act are legislative or executive.

Essential Commodities Act

• The Essential Commodities Act, 1955 was enacted to ensure the easy availability of essential commodities to consumers and to protect them from exploitation by unscrupulous traders. • The Act provides for the regulation and control of production, distribution and pricing of commodities which are declared as essential. • The States are the implementing agencies to implement the EC Act, 1955 and the Prevention of Black marketing & Maintenance of Supplies of Essential Commodities Act, 1980, to ensure adequate availability of essential commodities at reasonable prices, by exercising powers delegated to them. • The list of essential commodities is reviewed from time to time with reference to their production and supply and in the light of economic liberalization in consultation with the concerned Ministries/Departments administering these commodities. • Currently, the restrictions like licensing requirement, stock limits and movement restrictions have been removed from almost all agricultural commodities. • Wheat, pulses and edible oils, edible oilseeds and rice are the exceptions, where States have been permitted to impose some temporary restrictions in order to contain price increase of these commodities.

Prelims 2019 Question. Which of the followings are the reasons for the occurence of multi-drug resistance in microbial pathogens in India? 1. Genetic predisposition of some people. 2. Taking incorrect doses of antibiotics to cure diseases. 3. Using antibiotics in livestock farming. 4. Multiple chronic diseases in some people.

Select the correct answer using the code given below. (a) 1 and 2 (b) 2 and 3 only (c) 1,3 and 4 (d) 2,3 and 4

Page 13: FATF Asia-Pacific Group may blacklist Pakistan [GS2: International bodies]

• After being greylisted at the Financial Action Task Force (FATF) plenary, Pakistan now faces being put on the “blacklist” of the FATF’s Asia affiliate, the Asia-Pacific Group (APG), that will conclude its meetings in Canberra, Australia, on Friday. • While the two processes are separate, the APG blacklisting, or ‘Enhanced Expedited Follow Up’ status would definitely impair Pakistan’s chances at extricating itself from the FATF greylist that deals with countering terror-financing and money-laundering, at its Paris plenary later this year.  Note: The Financial Action Task Force (FATF) is an inter-governmental body established in 1989 on the initiative of the G7. • It is a “policy-making body” which works to generate the necessary political will to bring about national legislative and regulatory reforms in various areas. • The FATF Secretariat is housed at the The Organisation for Economic Co-operation and Development (OECD) headquarters in Paris. • According to the APG’s final report, expected to be made public after the meeting ends, Pakistan failed in 32 of 40 ‘compliance’ parameters for its legal and financial systems, and failed 10 of 11 ‘effectiveness’ parameters for enforcing safeguards against terror-financing and money-laundering by UN-sanctioned entities and other non-government outfits. • India is a member of both the APG and the FATF consultations and is represented by a team of officials from the Ministries of Finance, External Affairs and Home Affairs. • However, the actions demanding Pakistan’s review have been pushed by the U.S., the U.K., Germany and France. • Pakistan has claimed that it has charged Lashkar-e-Taiba/ Jamaat-ud Dawa (JuD) chief Hafiz Saeed with terror financing, and frozen all assets of the JuD and other UNSC banned outfits this year, as part of its ongoing efforts to crack down on terror.  FATF could decide one of three options: 1. to remove Pakistan from the greylist, 2. to continue to keep it on the greylist, 3. Or to downgrade it further to its blacklist. • Review meetings will be held in Bangkok on September 5, with a final decision at the Paris plenary session on October 18-23.

• If Pakistan stays on the greylist, or is blacklisted, it faces not only a financial downgrade and restrictions on its markets, but will have a tough time managing capital inflows from IMF and other agencies, as well as servicing debt that adds up to about 25% of the government’s revenues at present.

What is blacklist and grey list? • FATF maintains two different lists of countries: 1. Grey list: those that have deficiencies in their AML/CTF regimes, but they commit to an action plan to address these loopholes 2. Blacklist: those that do not end up doing enough. • Once a country is blacklisted, FATF calls on other countries to apply enhanced due diligence and counter measures, increasing the cost of doing business with the country and in some cases severing it altogether. • As of now there are only two countries in the blacklist — Iran and North Korea — and seven on the grey list, including Pakistan, Sri Lanka, Syria and Yemen.

Mains question: Q) Discuss the role of Final Action Task Force in combating money laundering and terror financing.

Page 15: Tax holiday only for start-ups with turnover up to ₹25 crore [GS3: Indian Economy]

• The tax department said only small startups with a turnover of up to ₹25 crore will get tax holiday on fulfilling certain conditions. • It did not recognise the ₹100-crore turnover definition of a small startup put up by the Department for Promotion of Industry and Internal Trade (DPIIT). • Startups broadly under Section 80 IAC of the Income Tax Act are allowed 100 per cent deduction of income for three years out of seven years from the year of its incorporation. • A start-up has to fulfil the conditions specified in Section 80-IAC for claiming this deduction. • Therefore, the turnover limit for small start-ups claiming deduction is to be determined by the provisions of Section 80-IAC of the Act and not from the DPIIT notification.

Page 15: Rupee hits eight-month low [GS3: Indian Economy] • The Indian rupee on Thursday plunged to an over eight-month low of 71.81, dropping 26 paise against the US dollar.  Reasons for the fall:  Foreign fund outflows: foreign investors pulled out Rs 902.99 crore from Indian equities on Thursday.  the sudden drop in Chinese yuan  Rise in the global crude benchmark Brent  Rise in the dollar index. Dollar index gauges the dollar's strength against a basket of six currencies  The 10-year Indian government bond yield was down at 6.56 per cent.  Note: Bond yields are a measure of the profit you will make from your bond investment. The less you pay for a bond, the greater your profit will be and the higher your yield will be. Conversely, the more you pay for a bond, the smaller your profit will be and the lower your yield will be.

About Bond Yield • When you own a government bond, in effect, the government has borrowed money from you. • Also, when an investor purchases a bond from a company, he gets paid at a specified rate of return, also known as the bond yield, at certain time intervals. • Bond prices and bond yields are inversely correlated. When bond prices rise, bond yields fall and vice-versa. • Demand for bonds usually increases when investors are concerned about the safety of their stock investments. • This flight to safety drives bond prices higher and, by virtue of their inverse relationship, pushes bond yields down. • A rising yield is dollar bullish. A falling yield is dollar bearish.

Mains question Q) What do you understand by bond yield? What factors influence variation in bond yields and how these variations impact economy?

Page 14: Crucial talks between the US and Taliban begin in Doha [GS2: International relations]

• United States officials and Taliban representatives have resumed negotiations in Qatar's capital on finding a peaceful solution to Afghanistan's long-running war. • Key issues discussed by US special envoy Zalmay Khalilzad are: 1. the withdrawal of US and other foreign forces from the country

2. a commitment by the Taliban that Afghanistan will not be used as a launchpad for global attacks. • The two sides entered peace negotiations in October last year, and an agreement on these two central issues would set the stage for separate negotiations between Afghan officials and the Taliban on a permanent ceasefire and a power-sharing government. • The Taliban has so far refused to speak to the Afghan government, calling a "puppet regime". • The group says any engagement with Kabul would grant it legitimacy. • About 14,000 US troops and some 17,000 troops from 39 NATO allies and partner countries are in Afghanistan in a non-combative role.