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Union Finance Minister Nirmala Sitharaman asserted that the Goods and Services Tax (GST) levies on food items such as curd, lassi and wheat would not burden poor households, and took on States and the Opposition parties for seeking to suggest that the taxes were driven by the Narendra Modi administration when it was a decision taken by the GST Council with all States on board.
Replying to the debate on price rise in the Lok Sabha, Ms. Sitharaman remarked that members’ discussion dwelled on the political angles of price rise rather than actual data-driven concerns so her response would also be slightly political.
Stressing that the government had held inflation at 7% or lower despite multiple headwinds such as the COVID-19 pandemic and its multiple waves, the Ukraine-Russia conflict and supply chain disruptions that persist due to lockdowns in parts of China, the Finance Minister said the government was working to reduce price rise further.
What the people’s expectations were, according to that, we are delivering and trying to reduce inflation. Even today, global trade hasn’t reached normalcy, yet we have managed to keep inflation at 7% or below.
Now when we are at 7%, and trying to bring it down, yet, we are being told what are you doing for inflation. The Minister contrasted this with retail inflation trends under the UPA regime, noting that the pace of price rise was over 9% in 22 out of 28 months and had crossed 10% nine times.
That should also be remembered when we are being asked why we are not bringing it below 7%. When questions are constantly based not on facts, facts will have to be reminded.
Even now, an Opposition member said inflation existed before COVID also. Yes, inflation existed. Let’s not forget — for a small taper tantrum by the U.S. Fed in 2008 led to problems till 2013 that led to India becoming one of the fragile five economies.
GST collections jump by 28% on imports (Page no. 1)
(GS Paper 3, Indian Economy)
Goods and Services Tax (GST) yielded ₹1,48,995 crore in revenues during the month of July, the second-highest monthly collections since the launch of the GST regime and the highest in three months.
July’s GST kitty is 28% higher than the same month last year, driven by a 48% surge in revenues from import of goods, while revenues from domestic transactions, including import of services, are 22% higher than a year ago.
The Finance Ministry said better reporting coupled with economic recovery have had a consistently positive impact on GST revenues, which are now 35% higher during the April to July period than a year ago.
These revenues display a “very high buoyancy” and are “a clear impact” of various measures taken by the GST Council to ensure better compliance.
For five months in a row now, the monthly GST revenues have been more than ₹ 1.4 lakh core, showing a steady increase every month.
The GST revenues in July include Central GST collections of ₹25,751 crore, State GST collections of ₹32,807 crore, and Integrated GST or IGST inflows of ₹79,518 crore, which includes ₹41,420 crore collected on the import of goods. GST Compensation Cess collections were ₹10,920 crore, factoring in ₹995 crore collected on goods imports.
About a dozen States recorded higher revenue growth than the 22% overall rise in revenues from domestic transactions, including Karnataka (45%), Tamil Nadu (34%), Kerala (29%), West Bengal (28%), Haryana (27%), Telangana (26%), and Andhra Pradesh (25%).
States
African swine fever reported in Kannur (Page no. 5)
(GS Paper 1, Health)
After Wayanad, African swine fever has been confirmed at a private pig farm in Kanichar Panchayat in Kannur district, after more than 15 pigs on the farm had died due to the disease in the last ten days.
The confirmation was made on Sunday evening after the samples were tested at the High Security Animal Disease Laboratory in Bhopal.
Last month, for the first time in Kerala, African swine fever was confirmed in two farms in Manthavady and Tavinhal in Wayanad, where pigs were culled.
In Kannur, the Animal Husbandry department will start the process of electrical stunning of pigs in pig farms within a kilometer radius of the area today or by tommorow, said S.J Lekha, District Animal Husbandary officer. It has also been instructed to monitor pigs in pig farms within a radius of 10 km from this area.
Ms. Lekha said that a meeting has been called by the district collector and necessary preventive steps would be taken to prevent the spread of the disease.
African swine fever will not affect humans, but they can be carriers and spread the disease. Hence, those working in pig farms and others who visited farms have been warned to be vigilant, and are being instructed to be in 24 hours quarantine.
There is also a ban on the distribution and sale of pork from areas where the disease has been confirmed. To prevent the spread of the disease, a special squad has been formed to monitor the state borders and inspections have been intensified.
The situation has left pig farmers in Kannur worried. They complain that the compensation of ₹15000 for a pig weighing more than 100 kg is insufficient to make up the loss.
Kerala opposes changes to MMDR Act (Page no. 5)
(GS Paper 2, Indian Polity)
The Kerala government has opposed the new set of proposed amendments to the Mines and Minerals (Development and Regulation) Act. State Industries Minister P. Rajeeve met Union Coal and Mines Minister Pralhad Joshi here on and told him that the amendments are a breach of States’ rights as minerals come under the purview of States.
The Centre had invited suggestions from the public to the draft amendments to the MMDR Act. Mr. Rajeeve termed the
proposed amendments as anti-Constitutional and added that the proposals may lead to improper handling of strategically important minerals such as uranium by select private companies.
It is against the national interest after his meeting with Mr. Joshi along with Kerala Finance Minister K.N. Balagopal. He added that the State will hold discussions with other mineral rich States for joint opposition of the amendments.
The main objection is against the sixth item in the note for consultation sent to the State governments that will empower the Centre to auction some minerals from the list of atomic minerals.
Kerala is endowed with rich resource of Beach Sand Minerals and some of them are significant not only for their economic ambit but for the strategic nature also.
He added that Kerala strongly opposes the proposed amendment as State governments are the owners of the mines and minerals located within the territory of the State concerned, and under Entry 23 of List II of the Constitution and the Constitutional right of the State under Article 246(3), State Assemblies can make laws on such minerals.
Editorial
Unpacking a conundrum (Page no. 6)
(GS Paper 3, Health)
A fortnight after India confirmed its first case of monkeypox, it has reported its first casualty. A 22-year-old man, from Thrissur in Kerala, died due to suspected monkeypox symptoms, a day after which Kerala’s Health Minister Veena George said he had tested positive in the United Arab Emirates (UAE).
The patient was undergoing treatment in a private hospital for severe fatigue and brain fever, six days after his arrival in the State on July 21.
His swab samples have been sent to the ICMR-National Institute of Virology (NIV) centre in Alappuzha for confirmation. Death from the virus is reportedly rare, though as the experience of COVID-19 shows, it could vary depending on the population at hand.
According to the World Health Organization, the case fatality ratio of monkeypox has historically ranged from 0% to 11% in the general population and has been higher among young children.
In recent times, the case fatality ratio has been around 3%-6%. While the disease has been around in Africa since the 1970s, it has also been reported in the U.S., the U.K. and Israel.
In 2017, Nigeria experienced a large outbreak, with a case fatality ratio of approximately 3%; cases continue to be reported.
It is the surge outside Africa, in 78 countries, that has elevated the risk profile of the disease along with the realisation that there are considerable gaps in knowledge on whether the disease poses a greater risk to specific population groups, just as it was eventually determined for COVID-19.
In monkeypox deaths in Brazil and Spain, the patients were reported to have had serious associated syndromes such as encephalitis and lymphoma, though it is unclear what role the virus played in their disease outcome.
That monkeypox spreads mainly through sexual transmission and close contact — it is not an airborne disease — should not be of comfort to health authorities.
The death in Thrissur highlights the need for a thorough probe as well as a public disclosure on the case progression. For instance, Kerala’s health authorities say the person was admitted not after being confirmed to be monkeypox-positive but due to a fever and experiencing fatigue. It was only later that the rashes and blisters showed up. Intriguingly, that he had tested positive for monkeypox was disclosed to the health authorities a day before he died.
Language as barrier (Page no. 6)
(GS Paper 2, Governance)
The call by Home Minister Amit Shah last week for engineering, law and medicine to be taught in Indian languages is a well-intentioned one. His stand is in sync with one of the focal points of the National Education Policy (NEP) 2020, i.e., the promotion of Indian languages in higher education.
The NEP provides for more higher educational institutions and programmes in higher education to use the mother tongue or local language as a medium of instruction, besides offering programmes bilingually.
The rationale behind Mr. Shah’s call is that 95% of students, who receive primary education in their mother tongue, should not be left out in their pursuit of higher studies.
In recent years, substantive measures have been taken to make engineering courses available in Indian languages, if the statement by Union Education Minister Dharmendra Pradhan in the Lok Sabha in December 2021 is an indication.
Effective 2021-22, the AICTE granted approval to 19 engineering colleges in 10 States for having engineering courses in six Indian languages.
The Council has also developed an “AICTE Translation Automation AI Tool” that translates English online courses in 11 Indian languages. SWAYAM, an open online courses platform of the Central government, has been offering some popular courses in Indian languages too.
The import of this is that the goal of covering all sections as far as higher education is concerned should become a reality.
But, at the same time, one should not gloss over the exercise not having yielded results. In Tamil Nadu, for instance, the bid to impart engineering education through the Tamil medium has not created any impact despite the principal political players using language as a political tool.
In the field of law — before the subject is taught in the Indian languages — the Central government should try to impress upon the judiciary to allow the use of Indian languages in court proceedings.
Using a rupee route to get around a dominating dollar (Page no. 6)
(GS Paper 3, Indian Economy)
A number of countries, including India, are now considering the use of other currencies to avoid the U.S. dollar and its hegemonic role in settling international transactions.
As for India, currency hierarchy goes back to colonial times when the Indian rupee was virtually linked to the British pound rather than to gold which it earned through exports.
In the post-War period, the neo-colonial currency hierarchy has been clubbed with the continued use, primarily of the U.S. dollar, for the majority of international transactions.
The current situation relates, in addition, to geopolitical developments, the Russia-Ukraine war in the forefront followed by the sanctions imposed on Russia by the West.
In recent times, India has been taking an active interest in having the rupee used for trade and the settlement of payments with other countries, which include Russia, now facing sanctions.
Even earlier, the annexation of Crimea in 2014 had resulted in the imposition of similar sanctions against Russia over a period of time.
Settling payments with Russia by India, especially for mineral fuels and oil imports as well as for the S-400 Triumf air defence system has been continuing on a semi-informal basis through rupee payments by using the Vostro accounts maintained by Russian banks in India.
The Reserve Bank of India has recently taken a proactive stand to have rupee settlement of trade (circular dated July 11, 2022). While options for invoicing in rupees were already legal in terms of Regulation 7(1) of the Foreign Exchange Management (Deposit) Regulations, 2016, the current circular aims to operationalise the special Vostro accounts with Russian banks in India, in a bid to promote trade and also gain a better status for the rupee as an international currency.
OPED
Government’s own ‘gig workers’ (Page no. 7)
(GS Paper 3, Indian Economy)
When images of a langur appear on the walls of Vigyan Bhavan and nearby sites in New Delhi, the protagonist (Anjani Prasad) in the movie, Eeb Allay Ooo!, is summoned along with his thekedaar (contractor) to the office of the municipal corporation.
A complaint about the images that were put up by Anjani to scare away the monkeys has reached the officer and he threatens to cancel the contract for shooing away the monkeys.
The absurdity of the task, for which a thekedaar is appointed by floating a tender, may unsettle the viewers. However, for those engaged by the various levels of the government through such contracts, it is a lived reality.
While the Agnipath scheme has ignited a debate on the nature of jobs in the government, ‘temporary’ jobs have comprised the vast majority of available government employment for quite some time. They may be classified into three categories; permanent, contractual and daily wagers.
A commentator recently referred to it as “the caste system of permanent, contractual, and casual employees”. Outsourcing has become the dominant mode of working in the government, from highly specialised tasks to the most routine ones.
It may be a safai karamchari (sanitation worker), a driver/conductor of your city bus service, a junior engineer or a highly paid consultant — all engagements are usually outsourced to an agency.
The modalities of “contractual” jobs in the public sector, therefore, require a much deeper examination than it has been afforded in recent debates to understand its impact on various public services.
There are two main methods to induct an ‘employee’ on contract in a government entity; first, directly on the payroll of the entity and, second, through a labour contractor or as part of any other contract entered into pursuant to a tender process.
In both cases, the costs and liabilities of the government entity are significantly reduced compared to a “permanent” position. While the entity may remain the principal employer in both cases, the burden of responsibility is shifted to the contractor in the case of the latter, which is also the predominant mode of engaging contractual workers.
Working towards animal health (Page no. 7)
(GS Paper 1, Health)
The developments unleashed by COVID-19 have once again put the spotlight on the pressing need to create greater collaborations and synergies between research on human health and animal health. India has a livestock population of 1.6 billion, that in turn translates into a scenario where approximately 280 million farmers rely on the livestock and related industries for livelihood.
From the perspective of trade, the dairy industry in the country is valued at $160 billion, while the meat industry is valued at $50 billion.
In addition, livestock and related activities have significant overlap with wildlife and humans. In the current atmosphere of climate change and unpredictable weather, animal husbandry assumes significance as a source of reliable income to farmers.
Statistics indicate that globally, we have witnessed around 9,580 instances of disease outbreaks from 2000 to 2010, of which 60% diseases were zoonotic in nature.
Likewise, the incidences of disease outbreaks across the globe have been increasing at a compound annual growth rate (CAGR) of 6%.
In India, we see that annual outbreak of zoonotic diseases translates into an estimated annual loss of $12 billion to the economy.
Thus, even though these diseases do not affect human health directly, they are responsible for huge consequences to farmers, exports and gross domestic product (GDP) growth nationally.
In this background, close collaboration is the need between veterinary science and human health experts to forge effective tools for pandemic preparedness.
A major loophole in the context of pandemic preparedness can be attributed to the fact that it has largely been human centric, leaving a large unaddressed gap for diseases of pandemic potential in animals.
Explainer
The dwindling fighter strength of the IAF (Page no. 8)
(GS Paper 3, Defence)
The Indian Air Force (IAF), which is facing a decline in its fighter squadrons, will have around 37-38 fighter squadrons in a decade, said the Deputy Chief of Air Force Air Marshal Sandeep Singh.
He also said the 114-fighters deal under way has to meet the growing Make in India aspirations incorporated in the just-released Defence Acquisition Procedure (DAP) 2020.
We are already aware [of] what is supposed to come in the DAP 2020, and we have already realigned our Statement of Case to seek higher levels of production technology, and use of indigenous systems and materials where possible.
The IAF is expected to soon approach the government for an accord on the Acceptance of Necessity for the 114-fighters deal, after which the formal procurement process would begin. The new DAP 2020 comes into effect from October 1.
On the fighter modernisation, Air Marshal Singh said that the rate at which the phasing out was taking place, the Mig-21s would “have to go”, but life of other fighters was being extended and made “more capable”. The IAF is in the process of phasing out the remaining squadrons of Mig-21s.
We will hit around 37-38 squadrons in a decade,” Air Marshal Sandeep Singh said, adding that this was assuming there were no delays in the induction of the Light Combat Aircraft (LCA) variants. The Advanced Medium Combat Aircraft (AMCA) induction is planned to begin by the end of the decade.
Stating that the fleet would be much more capable by then, he said, “Our adversaries are also getting technologically superior and [have] more number of aircraft.
Air Marshal Singh said that “the financial crunch” had made the IAF rethink its acquisition plan for mid-air refuelling aircraft.
IAF has already received feedback that it would be possible to dry lease these platforms, stating this may be possible through Indian firms, which is allowed by the DAP 2020.
News
Solih arrives amid anti-India stir in Maldives (Page no. 10)
(GS Paper 2, International Relation)
President of the Maldives Ibrahim Mohamed Solih will pay an official visit between August 1 and 4, the official spokesperson of the Ministry of External Affairs announced.
The visit will provide an opportunity for top-level consultation between the two sides, in the backdrop of the ongoing turmoil in Sri Lanka.
President Solih will be the first foreign dignitary to be welcomed by President Droupadi Murmu. During the visit, he will be accompanied by a high-level official and business delegation, and hold talks with Prime Minister Narendra Modi.
Besides official engagements in New Delhi, President Solih will be holding discussion with an Indian business delegation in Delhi.
During this visit, President Solih will also visit Mumbai, Maharashtra and participate in business events," said the MEA, in an official announcement.
The Maldives hosted former Sri Lankan President Gotabaya Rajapaksa briefly between July 13 and 14, after he fled Sri Lanka on his way to Singapore.
Maldives is India’s key neighbour in the Indian Ocean Region and occupies a special place in India’s Neighbourhood First Policy. In recent years, the partnership has witnessed rapid growth in all areas of cooperation.
President Solih’s upcoming official visit will provide an opportunity for the two leaders to review the progress made in this wide-ranging partnership and lend further momentum to it.
IAF to take part in ‘Pitch Black’ in Australia (Page no. 10)
(GS Paper 2, International Relation)
Continuing the series of military exercises with countries in the Indo-Pacific, the Indian Air Force (IAF) will join 16 other nations, including Quad partner countries, later this month for Exercise Pitch Black, the biennial exercise hosted by the Australian Air Force.
About 100 aircraft and 2,500 military personnel from 17 nations will arrive in the Northern Territory in two weeks to commence Exercise Pitch Black 2022, the Australian Ministry of Defence.
With a four-year hiatus since the last Pitch Black due to the global pandemic, this year’s exercise will see a return of the combined force to Australian skies, enhancing interoperability and strengthening relationships.
Commenting on this, Group Captain Peter Wood, PBK22 Director Engagement, said, “International participation in Ex Pitch Black, from within the Indo-Pacific region and further abroad, provides all nations’ personnel with experience in working with aircraft, systems and work practices, in northern Australia’s unique environment, that would otherwise be unfamiliar.”
The participants this year are Australia, Canada, France, Germany, Indonesia, India, Japan, Malaysia, Netherlands, New Zealand, the Philippines, South Korea, Singapore, Thailand, UAE, the U.K. and the U.S.
For the first time, the IAF had deployed fighter aircraft for the exercise in 2018 which it had then stated would “provide a unique opportunity for exchange of knowledge and experience with these nations in a dynamic warfare environment”. The then contingent, consisting of 145 personnel, four Su-30MKI fighters, one C-130 and one C-17 transport aircraft, went to Australia via Indonesia and during the transit had constructive engagements with the Indonesian and Malaysian Air Forces as well.
Centre constitutes task force to monitor monkeypox situation (Page no. 12)
(GS Paper 3, Health)
In the wake of the detection of monkeypox cases in India, the Union government has constituted a task force to monitor and provide guidance on the expansion of diagnostic facilities and to explore vaccination against the infection in the country.
The decision was taken during a meeting attended by senior officials recently. The team will be headed by V.K. Paul, member (Health), NITI Aayog. India has reported six confirmed cases of monkeypox so far — four in Kerala and two in Delhi.
According to the World Health Organization (WHO), more than 18,000 cases have been reported from 78 countries. The monkeypox outbreak can be stopped if countries, communities and individuals inform themselves, take the risks seriously, and take the steps needed to stop transmission and protect vulnerable groups.
Monkeypox is a zoonotic disease caused by the monkeypox virus, which belongs to the same family of viruses that causes smallpox.
The disease is endemic in regions like West and Central Africa, but lately, cases have been reported from non-endemic countries too, according to WHO.
The current world outbreak is caused by the less severe West African type of the virus.
‘Need right strategies in right groups’ (Page no. 12)
(GS Paper 3, Health)
The monkeypox virus spread can be curtailed with the right strategies in the right groups, without creating stigma and discrimination adding that the risk of monkeypox in WHO South-East Asia Region is currently assessed as moderate.
However, in view of the complexities and uncertainties associated with this multi-country public health event, WHO announced the ongoing monkeypox transmission as a Public Health Emergency of International Concern (PHEIC), the highest level of global public health alert for countries to implement a coordinated response, with the goals of stopping human-to-human transmission and protecting the vulnerable groups.
Stating that the testing capacities for monkeypox globally, and in the region are limited, but are being strengthened Dr. Poonam Singh said that India’s National Institute of Virology, Pune, is one of the four referral laboratories for countries across WHO South-East Asia region. India has identified a network of laboratories for the diagnosis of monkeypox.
Also here the experience of India and the region in strengthening laboratory diagnosis for COVID-19 will be useful.
WHO is supporting countries with technical assistance and procurement of diagnostic assays that are high in demand and low in supplies globally.
Speaking about the extensive travel that the world has opened up to with the COVID-related travel restrictions, Dr. Poonam admitted that South East Asia, having very high human density, adds to the unique challenges of transmissibility.
For countries with recently imported cases of monkeypox, WHO recommends implementing a coordinated response to stop human-to-human transmission of monkeypox virus, prioritizing communities at high risk of exposure.
Targeted risk communication and community engagement, case detection, supported isolation of cases and treatment and contact tracing, are among the key recommendations.
Highlighting how during the ongoing COVID-19 pandemic, countries have built, strengthened, and demonstrated capacities to overcome health emergencies she said that countries are now better prepared to respond to health emergencies.
World
Amid China warnings, Pelosi to visit Taiwan: report (Page no. 13)
(GS Paper 2, International Relation)
U.S. House of Representatives Speaker Nancy Pelosi was set to visit Taiwan, Taiwanese media reported, citing unidentified sources, as China warned that its military would never “sit idly by” if she were to visit the self-ruled island claimed by Beijing.
One of the newspapers, the Liberty Times, said Ms. Pelosi was scheduled to visit Taiwan’s Parliament on before continuing her Asia trip, which began earlier on Monday in Singapore. Reuters could not immediately confirm the reports.
White House National Security spokesman John Kirby on Monday told reporters that Ms. Pelosi “has the right to visit Taiwan”. Secretary of State Antony Blinken said that such a visit would be entirely her decision, but called on China not to escalate tensions in the event of a visit.
If the Speaker does decide to visit and China tries to create some kind of crisis or otherwise escalate tensions, that would be entirely on Beijing. Taiwan’s Foreign Ministry said it had no comment on reports of Ms. Pelosi’s travel plans. Chinese Foreign Ministry spokesman Zhao Lijian said earlier on Monday that it would be “a gross interference in China’s internal affairs” if Ms. Pelosi visits Taiwan, and warned that it would lead to “very serious developments and consequences”.