Economic Answer with Explanation

2 7 Jan, 2021

CONTENTS 1. DRDO successfully test fires Akash-NG missile ...... 1 2. Global Climate Risk Index 2021 ...... 1 3. World Economic Outlook, 2021 ...... 2 4. Hike in MSP for Copra ...... 3 5. Prelims ...... 4

GS-PAPER III Science and Technology  The missile can neutralize the aerial DRDO SUCCESSFULLY TEST targets such as the fighter jets, cruise missiles and air-to-surface missiles. FIRES AKASH-NG MISSILE  The missile is in operation with the Indian The Defence Research and Development Army and the Indian Air Force. Organisation (DRDO) has successfully test-  It utilizes an integrated ramjet-rocket fired the surface-to-air Akash-NG (New propulsion system. This propulsion Generation) Missile off the Odisha coast. system provides sustained thrust for the The missile can intercept the aerial threats. missile after initial rocket motor burnout

until its interception. Akash-NG:  Akash-NG is a medium-range mobile Source: INDIAN EXPRESS surface-to-air missile defense system and has been developed by the Defence GS-PAPER III Environment Research and Development GLOBAL CLIMATE RISK Organisation (DRDO).  The missile has been produced jointly by INDEX 2021 the Bharat Dynamics Limited (BDL) that India ranks seventh among countries most developed the Missile Systems and the affected in 2019 by climate change, Bharat Electronics (BEL), Tata Power according to the Global Climate Risk Index, Strategic Engineering Division & Larsen 2021, released by Germanwatch — an NGO & Toubro that developed the radars, based in Bonn, Germany. control centers, launcher systems. Highlights:  The missile has the capability of  Globally, 11.8 million people were targeting the aircraft up to 50-60 km affected by intense monsoon with the away at altitudes of 18,000 m. economic damage estimated to be US $10 billion. 27th Jan 2021

 In the index, India has been ranked at Germanwatch: seventh position among the countries Germanwatch, based in Bonn and Berlin that are most effected by climate change (Germany), is an independent development in 2019. and environmental organisation which works for sustainable global development.  Heavy rain caused the severe flooding in

India that resulted into death of 1,800 Source: INDIAN EXPRESS across14 states. The flood also caused

the displacement of 1.8 million people. GS-PAPER III Economy  As per the report, monsoon continued for a month longer than normal in India in WORLD ECONOMIC the year 2019. OUTLOOK, 2021  As per the report, eight tropical cyclones Recently, the International Monetary Fund cam in India. Six of them intensified to be (IMF) has released the ―World Economic very severe. Outlook, 2021‖ report.  Report further highlights that, ‗Extremely severe‘ cyclone Fani affected 28 million Highlights of report: people and killed 90 people in India and  The report highlights that, India will Bangladesh. witness the strongest growth among the  Around 4,75,000 people have lost their main economies. lives as a direct result of more than  India‘s economy will expand by 11.5 11,000 extreme weather events globally percent in 2021 as opposed to the 8.8 in between the 2000 to 2019. percent growth that was predicted in  For the period of 2000 to 2014, the October 2020. However, for the year economic losses in terms of purchasing 2022, the growth has been predicted to power parity accounts to around US be 6.8 percent. $2.56 trillion because of extreme weather  India‘s real gross domestic product conditions. (GDP) shrank as much as 8 per cent in  The report also highlights that, around FY21 due to the Covid-19 pandemic. 11.8 million people were affected by  The global economy contracted by an intense monsoon globally that in turn estimated 3.5 per cent in 2020 amidst resulted into economic damage of US the unprecedented health crisis. $10 billion.  The report further highlights that the global growth for 2021 will be 5.5 percent Global Climate Risk Index (CRI): as compared to 5.2 percent in October  The Global Climate Risk Index is 2020. annually published by the Germanwatch.  The world economic growth is projected  It analyses how countries have been at 4.2 percent in 2022. affected by the impacts of weather- related loss events.  The U.S. growth projection for this year was raised sharply to 5.1 percent from  CRI analyses economic impact as well 3.1 percent. Growth is projected to slow as fatalities due to extreme weather to 2.5 percent next year. events.  China's growth forecast for this year was slightly lowered to 8.1 percent from 8.2 percent.

 Effective containment measures, a GS-PAPER I Geography forceful public investment response, and HIKE IN MSP FOR COPRA central bank liquidity support have facilitated a strong recovery, The Cabinet Committee on Economic Affairs  The report highlighted the pandemic- (CCEA) has approved the Minimum Support induced acceleration in inequality by Prices (MSPs) for milling copra and ball copra. reiterating that close to 90 million people

are likely to fall below the extreme Highlights: poverty threshold during 2020-21 as  The MSP for Fair Average Quality (FAQ) workers with less education, women, of milling copra has been increased,by youth, those in contact-intensive sectors, Rs.375/-, to Rs. 10335/- per quintal for and those informally employed suffer 2021 season from Rs. 9960/- per quintal disproportionate livelihood and income in 2020. The MSP for ball copra has losses. been increased, by Rs.300/-, to Rs. International Monetary Fund: 10,600/- per quintal for 2021 season  The IMF was set up along with the World from Rs. 10300/- per quintal in 2020. The Bank after the Second World War to declared MSP ensures a return of 51.87 assist in the reconstruction of war- percent for milling copra and 55.76 ravaged countries. percent for ball copra over the all-India  The two organizations were agreed to be weighted average cost of production. set up at a conference in Bretton Woods  The approval is based on in the US. Hence, they are known as the recommendations of the Commission for Bretton Woods twins. Agricultural Costs and Prices (CACP).  Created in 1945, the IMF is governed by  The increase in MSP for copra for 2021 and accountable to the 190 countries season is in line with the principle of that make up its near-global fixing the MSP at a level of at least 1.5 membership. India joined on December times the all India weighted average cost 27, 1945. of production which was announced by  The IMF's fundamental mission is to the Government in the Budget 2018-19. ensure the stability of the international Minimum support price (MSP): monetary system. It does so in three  MSP is an agricultural product price ways: which is set by the Government of India. o keeping track of the global economy On this price, the government purchases and the economies of member the commodities directly from the farmer. countries;  The MSP is not enforceable by law. MSP o lending to countries with balance of seeks to safeguard the farmer interest by payments difficulties; providing them a minimum profit for their o and giving practical help to members. harvest in case the open market has Source: INDIAN EXPRESS lesser price than the actual cost incurred.  The price of the 23 commodities is set by the government twice a year. The MSP is fixed based on the recommendations of the Commission for Agricultural Costs and Prices (CACP).

Years of Age in India‘, published in the Commission for Agricultural Costs and journal Environmental Epidemiology, has Prices (CACP): found that for every 10 micrograms per  CACP is an expert body which meter cube increase in PM2.5 levels recommend minimum support prices exposure, there is a decrease of 0.07 grams (MSPs) to Government (CCEA) by taking per dL in average haemoglobin levels. into account cost of production, trends in domestic and international prices.  Higher PM2.5 levels exposure,  It is a statutory panel under the Ministry decreases the average haemoglobin of Agriculture levels in children.  It makes the recommendations for MSPs According to the India National Family and for 23 kharif and rabi crops. Health Survey 2015–2016 (NFHS-4), 53.1  Its suggestions are not binding on the per cent of women in India with 15–49 years government. of age and 58.5 per cent of children under five were anaemic. A ‗Lancet Global Health report‘ also  CACP sets the price since 2009 on the revealed that 23% of Indian men suffer from basis of cost of production, demand & anaemia. supply, price fluctuations, market price trends, international market prices and Anaemia: agricultural wage rate.  The World Health Organization (WHO) defines anaemia as a condition in which Source: PIB the number of red blood cells or their oxygen-carrying capacity is insufficient to GS-PAPER III Science and Technology meet physiological needs. EXTENDED PERIODS OF  Iron deficiency is the most common EXPOSURE TO PM 2.5 CAN cause of anaemia, although other LEAD TO ANAEMIA conditions, such as folate, vitamin B12 and vitamin A deficiencies, chronic A study conducted by IIT-Delhi has found inflammation, parasitic infections, and that extended periods of exposure to PM 2.5 inherited disorders can all cause can lead to anaemia among children under anaemia. the age of 5 years. Source: INDIAN EXPRESS The study, titled ‗The Association Between Ambient PM 2.5 Exposure and Anaemia Outcomes Among Children Under Five

PRELIMS

1. Consider the following statements Akash-NG (New Generation) Missile, which was test fired recently: 1) It is a medium-range mobile surface-to-surface missile defense system. 2) The missile can intercept the aerial threats. Which among the following above given statements are correct? a) only 1 b) only 2 c) both 1 and 2 d) none of the above

2. Global Climate Risk Index is annually published by which among the following organization: a) World Economic Forum b) World Bank c) UNEP d) None of the above

3. World Economic Outlook is published by which among the following organization: a) World Bank b) IMF c) World Economic Forum d) UNDP

4. Consider the following statements regarding Minimum support price (MSP): 1) The MSP is fixed based on the recommendations of the Commission for Agricultural Costs and Prices (CACP). 2) The MSP is enforceable by law and is set by the government twice a year. Which among the following above given statements are correct? a) only 1 b) only 2 c) both 1 and 2 d) none of the above

5. Consider the following statements: 1) Higher exposure to PM2.5 levels will lead to decrease in the average haemoglobin levels in children. 2) The World Health Organization (WHO) defines anaemia as a condition in which the number of red blood cells or their oxygen-carrying capacity is insufficient to meet physiological needs. Which among the following above given statements are correct? a) only 1 b) only 2 c) both 1 and 2 d) none of the above

ANSWERS 1. Answer (b) 2. Answer (d) 3. Answer (b) 4. Answer (a) 5. Answer (c) ***