Page 1
The Hindu Analysis: 17 May 2020
1. India opposes rejoining RCEP over China concerns
Context:
? Fresh Proposal for India to rejoin RCEP negotiations.
Background:
? India had quit the ASEAN-led trade Regional Comprehensive
Economic Partnership (RCEP), which includes the 10 ASEAN
nations, Australia, China, Japan, New Zealand and South Korea
in November 2019, citing lack of protection for the country’s
agricultural sector among others.
? The RCEP’s Trade Negotiating Committee (TNC) Chairperson
made an offer to India to reconsider its objections and made a
fresh proposal of India rejoining negotiations of RCEP. The TNC
had offered protective measures like giving market access only
for a limited number of products if India would rejoin the talks.
¦ Australia and Japan have been at the forefront of
efforts to convince India to rejoin the RCEP as a possible
counterweight to China in the grouping that would
represent a third of global trade.
? India has decided against agreeing to the fresh proposal from
RCEP.
Details:
India’s concerns:
? A senior Ministry of External Affairs (MEA) official has stated
that the global post-COVID-19 concerns over China had
strengthened India’s opposition to the RCEP.
¦ The COVID-19 experience has shown the limitations of
being overly dependent on imports from China or any one
country.
? India’s experience of the past trade pacts was that they had
badly affected domestic manufacturing capabilities and would
thus hamper the government’s renewed commitment to the
Page 2
The Hindu Analysis: 17 May 2020
1. India opposes rejoining RCEP over China concerns
Context:
? Fresh Proposal for India to rejoin RCEP negotiations.
Background:
? India had quit the ASEAN-led trade Regional Comprehensive
Economic Partnership (RCEP), which includes the 10 ASEAN
nations, Australia, China, Japan, New Zealand and South Korea
in November 2019, citing lack of protection for the country’s
agricultural sector among others.
? The RCEP’s Trade Negotiating Committee (TNC) Chairperson
made an offer to India to reconsider its objections and made a
fresh proposal of India rejoining negotiations of RCEP. The TNC
had offered protective measures like giving market access only
for a limited number of products if India would rejoin the talks.
¦ Australia and Japan have been at the forefront of
efforts to convince India to rejoin the RCEP as a possible
counterweight to China in the grouping that would
represent a third of global trade.
? India has decided against agreeing to the fresh proposal from
RCEP.
Details:
India’s concerns:
? A senior Ministry of External Affairs (MEA) official has stated
that the global post-COVID-19 concerns over China had
strengthened India’s opposition to the RCEP.
¦ The COVID-19 experience has shown the limitations of
being overly dependent on imports from China or any one
country.
? India’s experience of the past trade pacts was that they had
badly affected domestic manufacturing capabilities and would
thus hamper the government’s renewed commitment to the
‘Make in India’ policy.
RCEP’s stand:
? The RCEP will provide a more stable and predictable economic
environment to support the much-needed recovery of trade
and investment in the region, which has been adversely
affected by the COVID-19 pandemic.
? India’s willingness to rejoin the RCEP negotiations would send a
positive signal to the world. It would portray India as an
attractive place to invest and highlight its potential of being a
global manufacturing hub as envisaged by the government’s
‘Make in India’ policy.
2. Aiming to achieve herd immunity naturally is
‘dangerous’, WHO warns
Context:
? The World Health Organization has condemned the “dangerous”
concept of herd immunity for managing the coronavirus
pandemic.
Details:
? The concept of herd immunity is generally used for calculating
how many people will need to be vaccinated in a population in
order to protect those who are not vaccinated.
Challenges:
? Achieving herd immunity through natural infections has many
challenges.
¦ While antibodies (IgG and IgM) against novel coronavirus
generally develop in one–three weeks after infection,
some people do not seem to develop an immune response,
as reflected by detectable antibodies.
¦ How long neutralising antibodies against the virus would
last is currently not known.
¦ Infected people may have some level of protection
against the virus, but the level and duration of protection
are still not known.
Page 3
The Hindu Analysis: 17 May 2020
1. India opposes rejoining RCEP over China concerns
Context:
? Fresh Proposal for India to rejoin RCEP negotiations.
Background:
? India had quit the ASEAN-led trade Regional Comprehensive
Economic Partnership (RCEP), which includes the 10 ASEAN
nations, Australia, China, Japan, New Zealand and South Korea
in November 2019, citing lack of protection for the country’s
agricultural sector among others.
? The RCEP’s Trade Negotiating Committee (TNC) Chairperson
made an offer to India to reconsider its objections and made a
fresh proposal of India rejoining negotiations of RCEP. The TNC
had offered protective measures like giving market access only
for a limited number of products if India would rejoin the talks.
¦ Australia and Japan have been at the forefront of
efforts to convince India to rejoin the RCEP as a possible
counterweight to China in the grouping that would
represent a third of global trade.
? India has decided against agreeing to the fresh proposal from
RCEP.
Details:
India’s concerns:
? A senior Ministry of External Affairs (MEA) official has stated
that the global post-COVID-19 concerns over China had
strengthened India’s opposition to the RCEP.
¦ The COVID-19 experience has shown the limitations of
being overly dependent on imports from China or any one
country.
? India’s experience of the past trade pacts was that they had
badly affected domestic manufacturing capabilities and would
thus hamper the government’s renewed commitment to the
‘Make in India’ policy.
RCEP’s stand:
? The RCEP will provide a more stable and predictable economic
environment to support the much-needed recovery of trade
and investment in the region, which has been adversely
affected by the COVID-19 pandemic.
? India’s willingness to rejoin the RCEP negotiations would send a
positive signal to the world. It would portray India as an
attractive place to invest and highlight its potential of being a
global manufacturing hub as envisaged by the government’s
‘Make in India’ policy.
2. Aiming to achieve herd immunity naturally is
‘dangerous’, WHO warns
Context:
? The World Health Organization has condemned the “dangerous”
concept of herd immunity for managing the coronavirus
pandemic.
Details:
? The concept of herd immunity is generally used for calculating
how many people will need to be vaccinated in a population in
order to protect those who are not vaccinated.
Challenges:
? Achieving herd immunity through natural infections has many
challenges.
¦ While antibodies (IgG and IgM) against novel coronavirus
generally develop in one–three weeks after infection,
some people do not seem to develop an immune response,
as reflected by detectable antibodies.
¦ How long neutralising antibodies against the virus would
last is currently not known.
¦ Infected people may have some level of protection
against the virus, but the level and duration of protection
are still not known.
¦ Possibility of re-infection is a concern given the evidence
of short-lived protective immunity and re-exposure to
genetically distinct forms of the same viral strain.
3. Govt. throws open defence production and coal
sectors
Context:
? The fourth tranche of the Atma Nirbhar Bharat Abhiyan economic
stimulus package.
Details:
Defence sector:
Indigenization efforts:
? In a move aimed at indigenising defence production and enhancing
self-reliance in defence production, there are provisions for banning the
import of some weapons and platforms. The list of such weapons and
platforms would be widened every year as domestic capacities grew.
¦ While the state of the art weapons required by the Services would
be met through imports, some that were produced in the country
and meet the standards will be procured locally only. The negative
list would be worked out in consultation with the Department of
Military Affairs headed by the Chief of the Defence Staff.
? Indigenisation of imported spare parts would be given priority.
? There is a provision for a separate budget for domestic capital
procurement. This would help reduce the defence import bill and
encourage domestic production.
Increasing foreign investment:
? The Foreign Direct Investment (FDI) limit in defence manufacturing
under automatic route will be raised from 49% to 74%.
Corporatization of ordnance factory:
? Ordnance Factory Boards (OFB) would be corporatized and listed on the
stock market to improve autonomy, efficiency and accountability.
However, they would not be privatised.
¦ The Kolkata-headquartered OFB, with 41 factories spread across
the country, functions as a department under the Department of
Defence Production.
Page 4
The Hindu Analysis: 17 May 2020
1. India opposes rejoining RCEP over China concerns
Context:
? Fresh Proposal for India to rejoin RCEP negotiations.
Background:
? India had quit the ASEAN-led trade Regional Comprehensive
Economic Partnership (RCEP), which includes the 10 ASEAN
nations, Australia, China, Japan, New Zealand and South Korea
in November 2019, citing lack of protection for the country’s
agricultural sector among others.
? The RCEP’s Trade Negotiating Committee (TNC) Chairperson
made an offer to India to reconsider its objections and made a
fresh proposal of India rejoining negotiations of RCEP. The TNC
had offered protective measures like giving market access only
for a limited number of products if India would rejoin the talks.
¦ Australia and Japan have been at the forefront of
efforts to convince India to rejoin the RCEP as a possible
counterweight to China in the grouping that would
represent a third of global trade.
? India has decided against agreeing to the fresh proposal from
RCEP.
Details:
India’s concerns:
? A senior Ministry of External Affairs (MEA) official has stated
that the global post-COVID-19 concerns over China had
strengthened India’s opposition to the RCEP.
¦ The COVID-19 experience has shown the limitations of
being overly dependent on imports from China or any one
country.
? India’s experience of the past trade pacts was that they had
badly affected domestic manufacturing capabilities and would
thus hamper the government’s renewed commitment to the
‘Make in India’ policy.
RCEP’s stand:
? The RCEP will provide a more stable and predictable economic
environment to support the much-needed recovery of trade
and investment in the region, which has been adversely
affected by the COVID-19 pandemic.
? India’s willingness to rejoin the RCEP negotiations would send a
positive signal to the world. It would portray India as an
attractive place to invest and highlight its potential of being a
global manufacturing hub as envisaged by the government’s
‘Make in India’ policy.
2. Aiming to achieve herd immunity naturally is
‘dangerous’, WHO warns
Context:
? The World Health Organization has condemned the “dangerous”
concept of herd immunity for managing the coronavirus
pandemic.
Details:
? The concept of herd immunity is generally used for calculating
how many people will need to be vaccinated in a population in
order to protect those who are not vaccinated.
Challenges:
? Achieving herd immunity through natural infections has many
challenges.
¦ While antibodies (IgG and IgM) against novel coronavirus
generally develop in one–three weeks after infection,
some people do not seem to develop an immune response,
as reflected by detectable antibodies.
¦ How long neutralising antibodies against the virus would
last is currently not known.
¦ Infected people may have some level of protection
against the virus, but the level and duration of protection
are still not known.
¦ Possibility of re-infection is a concern given the evidence
of short-lived protective immunity and re-exposure to
genetically distinct forms of the same viral strain.
3. Govt. throws open defence production and coal
sectors
Context:
? The fourth tranche of the Atma Nirbhar Bharat Abhiyan economic
stimulus package.
Details:
Defence sector:
Indigenization efforts:
? In a move aimed at indigenising defence production and enhancing
self-reliance in defence production, there are provisions for banning the
import of some weapons and platforms. The list of such weapons and
platforms would be widened every year as domestic capacities grew.
¦ While the state of the art weapons required by the Services would
be met through imports, some that were produced in the country
and meet the standards will be procured locally only. The negative
list would be worked out in consultation with the Department of
Military Affairs headed by the Chief of the Defence Staff.
? Indigenisation of imported spare parts would be given priority.
? There is a provision for a separate budget for domestic capital
procurement. This would help reduce the defence import bill and
encourage domestic production.
Increasing foreign investment:
? The Foreign Direct Investment (FDI) limit in defence manufacturing
under automatic route will be raised from 49% to 74%.
Corporatization of ordnance factory:
? Ordnance Factory Boards (OFB) would be corporatized and listed on the
stock market to improve autonomy, efficiency and accountability.
However, they would not be privatised.
¦ The Kolkata-headquartered OFB, with 41 factories spread across
the country, functions as a department under the Department of
Defence Production.
Mineral sector:
? The Union Finance Minister has announced measures to liberalize the
mineral sector.
Coal:
? The government monopoly on coal would be removed with the
introduction of commercial mining on a revenue sharing basis.
¦ Any private player would be allowed to bid for a coal block and sell
it in the open market as against the earlier system where only
captive consumers with end-use ownership could bid for coal
blocks.
? The private sector would be allowed to bid for 50 coal blocks. Private
players would also be allowed to undertake exploration activities.
? The government also plans to auction Coal Bed Methane (CBM) blocks.
Other minerals:
? Composite exploration cum mining cum production regime for minerals
will be announced under which 500 mining blocks would be auctioned.
Space sector:
? Measures to encourage private involvement in space projects have been
announced.
¦ The government has promised to create a level playing field for
private players in the space sector, allowing them to use ISRO
facilities and participate in future projects on space travel and
planetary exploration.
¦ The government has assured of a predictable policy and
regulatory environment.
¦ The government will ease geo-spatial data policy to make
remote-sensing data more widely available to tech
entrepreneurs, with safeguards put in place.
Aviation sector:
? Six more airports are up for auction on private public partnership mode,
while additional private investment will be invited at 12 airports.
? Measures to ease airspace restrictions have been announced which
would make flying more efficient.
¦ Currently only 60% of the airspace is freely available.
? The MRO (maintenance, repair and operations) sector of aviation has
received attention in the recent announcements. There has been the
rationalising of the MRO tax structure with an aim to make India an MRO
hub.
Page 5
The Hindu Analysis: 17 May 2020
1. India opposes rejoining RCEP over China concerns
Context:
? Fresh Proposal for India to rejoin RCEP negotiations.
Background:
? India had quit the ASEAN-led trade Regional Comprehensive
Economic Partnership (RCEP), which includes the 10 ASEAN
nations, Australia, China, Japan, New Zealand and South Korea
in November 2019, citing lack of protection for the country’s
agricultural sector among others.
? The RCEP’s Trade Negotiating Committee (TNC) Chairperson
made an offer to India to reconsider its objections and made a
fresh proposal of India rejoining negotiations of RCEP. The TNC
had offered protective measures like giving market access only
for a limited number of products if India would rejoin the talks.
¦ Australia and Japan have been at the forefront of
efforts to convince India to rejoin the RCEP as a possible
counterweight to China in the grouping that would
represent a third of global trade.
? India has decided against agreeing to the fresh proposal from
RCEP.
Details:
India’s concerns:
? A senior Ministry of External Affairs (MEA) official has stated
that the global post-COVID-19 concerns over China had
strengthened India’s opposition to the RCEP.
¦ The COVID-19 experience has shown the limitations of
being overly dependent on imports from China or any one
country.
? India’s experience of the past trade pacts was that they had
badly affected domestic manufacturing capabilities and would
thus hamper the government’s renewed commitment to the
‘Make in India’ policy.
RCEP’s stand:
? The RCEP will provide a more stable and predictable economic
environment to support the much-needed recovery of trade
and investment in the region, which has been adversely
affected by the COVID-19 pandemic.
? India’s willingness to rejoin the RCEP negotiations would send a
positive signal to the world. It would portray India as an
attractive place to invest and highlight its potential of being a
global manufacturing hub as envisaged by the government’s
‘Make in India’ policy.
2. Aiming to achieve herd immunity naturally is
‘dangerous’, WHO warns
Context:
? The World Health Organization has condemned the “dangerous”
concept of herd immunity for managing the coronavirus
pandemic.
Details:
? The concept of herd immunity is generally used for calculating
how many people will need to be vaccinated in a population in
order to protect those who are not vaccinated.
Challenges:
? Achieving herd immunity through natural infections has many
challenges.
¦ While antibodies (IgG and IgM) against novel coronavirus
generally develop in one–three weeks after infection,
some people do not seem to develop an immune response,
as reflected by detectable antibodies.
¦ How long neutralising antibodies against the virus would
last is currently not known.
¦ Infected people may have some level of protection
against the virus, but the level and duration of protection
are still not known.
¦ Possibility of re-infection is a concern given the evidence
of short-lived protective immunity and re-exposure to
genetically distinct forms of the same viral strain.
3. Govt. throws open defence production and coal
sectors
Context:
? The fourth tranche of the Atma Nirbhar Bharat Abhiyan economic
stimulus package.
Details:
Defence sector:
Indigenization efforts:
? In a move aimed at indigenising defence production and enhancing
self-reliance in defence production, there are provisions for banning the
import of some weapons and platforms. The list of such weapons and
platforms would be widened every year as domestic capacities grew.
¦ While the state of the art weapons required by the Services would
be met through imports, some that were produced in the country
and meet the standards will be procured locally only. The negative
list would be worked out in consultation with the Department of
Military Affairs headed by the Chief of the Defence Staff.
? Indigenisation of imported spare parts would be given priority.
? There is a provision for a separate budget for domestic capital
procurement. This would help reduce the defence import bill and
encourage domestic production.
Increasing foreign investment:
? The Foreign Direct Investment (FDI) limit in defence manufacturing
under automatic route will be raised from 49% to 74%.
Corporatization of ordnance factory:
? Ordnance Factory Boards (OFB) would be corporatized and listed on the
stock market to improve autonomy, efficiency and accountability.
However, they would not be privatised.
¦ The Kolkata-headquartered OFB, with 41 factories spread across
the country, functions as a department under the Department of
Defence Production.
Mineral sector:
? The Union Finance Minister has announced measures to liberalize the
mineral sector.
Coal:
? The government monopoly on coal would be removed with the
introduction of commercial mining on a revenue sharing basis.
¦ Any private player would be allowed to bid for a coal block and sell
it in the open market as against the earlier system where only
captive consumers with end-use ownership could bid for coal
blocks.
? The private sector would be allowed to bid for 50 coal blocks. Private
players would also be allowed to undertake exploration activities.
? The government also plans to auction Coal Bed Methane (CBM) blocks.
Other minerals:
? Composite exploration cum mining cum production regime for minerals
will be announced under which 500 mining blocks would be auctioned.
Space sector:
? Measures to encourage private involvement in space projects have been
announced.
¦ The government has promised to create a level playing field for
private players in the space sector, allowing them to use ISRO
facilities and participate in future projects on space travel and
planetary exploration.
¦ The government has assured of a predictable policy and
regulatory environment.
¦ The government will ease geo-spatial data policy to make
remote-sensing data more widely available to tech
entrepreneurs, with safeguards put in place.
Aviation sector:
? Six more airports are up for auction on private public partnership mode,
while additional private investment will be invited at 12 airports.
? Measures to ease airspace restrictions have been announced which
would make flying more efficient.
¦ Currently only 60% of the airspace is freely available.
? The MRO (maintenance, repair and operations) sector of aviation has
received attention in the recent announcements. There has been the
rationalising of the MRO tax structure with an aim to make India an MRO
hub.
Power sector:
? Power departments/utilities and distribution companies in U.T.s would
be privatized based on a new tariff policy to be announced.
? The government plans to introduce a tariff policy with reforms focused
on consumer rights, promotion of industry and sustainability of the
sector.
Atomic sector:
? Research reactor in PPP mode would be set up for production of medical
isotopes.
Significance:
? Many sectors need policy simplification to decongest these sectors to
realize their growth and employment generation potential. The recently
announced measures would bring in the much needed structural
reforms in the sector.
? With the current set of reforms these sectors would become more
attractive for investments.
Defence sector:
? The stress laid on domestic manufacturing of defence equipment is very
encouraging as India today is among the largest importers in the world
of defence equipment. The list of non-importable items and
corporatisation of OFB are some landmark steps and will boost the
confidence of domestic manufacturers.
? The increase in FDI limit for the defence sector to 74% would attract
foreign funds into this sector, along with technology infusion.
Mineral sector:
? The structural reform measures in the coal and mining sector are
expected to give a boost to private investments in the sector enhancing
supplies and reduce India’s reliance on imports thus helping save
precious foreign exchange.
? The reforms could help double the mineral sectors’ contribution to the
GDP.
? The elimination of distinction between captive mines and non-captive
will ensure a level playing field for players in the integrated metals
space.
Power sector:
? The Centre’s decision to privatise power distribution companies in union
territories would help improve government finances and bring much
more efficiency to the sector.
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