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The third meeting of G20 Finance Ministers and Central Bank Governors (FMCBG) in Gandhinagar ended with a Chair Summary and Outcome Document following lack of consensus on the “language” of a communique regarding the Russia-Ukraine conflict.
After the conclusion of the two-day meeting, Union Finance Minister Nirmala Sitharaman told mediapersons, “A chair statement has been issued because we still do not have a common language on the Russia-Ukraine war.
We do not have the mandate to change the language given in the Bali Leaders’ Summit. So, it must be left to the leaders during the (G20 Leaders’) Summit in September to take a call on that. We did not think it was right for us to change it.”
As host, India has been unable to find a consensus with some of the participating countries insisting that the Ukraine conflict be called “war” and mentioned as such in the final communique.
Indian officials said the Russia-Ukraine conflict was beyond the realm of the G20.
The City
Multidimensional Poverty Index: How the capital fared in the last five years (Page no. 5)
(GS Paper 3, Economy)
Three out of 11 districts in the city have seen the headcount ratio — proportion of population that lives below the poverty threshold — of the multi-dimensionally poor increase even as the Capital has witnessed an improvement in multidimensional poverty between 2015-16 and 2019-2021.
According to the 2023 Multidimensional Poverty Index prepared by the NITI Aayog, North Delhi, West Delhi and South West Delhi have seen an increase in the headcount ratio of the multi-dimensionally poor. Two more districts — New Delhi and Central Delhi — have seen a marginal increase.
North East Delhi, which previously saw the multidimensional poverty rate of 7.35%, has seen a marked improvement as has North West Delhi.
The city, overall, had one of the lowest headcount ratios in the country and witnessed an improvement of one percentage point — from 4.44% to 3.43% in five years.
The index is calculated using 12 indicators, gathered from the NFHS reports from 2015-16 and 2019-21 (one-year gap due to Covid).
These indicators include nutrition, child and adolescent mortality, years of schooling, school attendance, cooking fuel, sanitation, drinking water, electricity, housing, assets and bank account, and are grouped under three heads — health, education and standard of living.
Govt & Politics
China’s stand on debt restructuring encouraging, says Sitharaman (Page no. 7)
(GS Paper 3, Economy)
After conclusion of the Third G20 Finance Ministers and Central Bank Governors (FMCBG) meeting at Gandhinagar on Tuesday, Union Finance Minister Nirmala Sitharaman said that China’s stand on debt restructuring was “encouraging” and she expected China to be “onboard” before the G20 leaders’ summit in New Delhi in September.
China is one of world’s largest bilateral creditor and G20 nations are in talks with it to use the “common framework” of G20 to provide debt relief.
Asked how optimistic she was regarding China coming “on board” by September as part of common debt resolution framework, Sitharaman said, “I am very hopeful.”
Sitharaman also thanked Chinese Finance Minister Liu Kun. “We were able to arrive at a consensus because of China’s cooperation and willingness with the membership for particularly mutually beneficial issues.”
An “outcome document and chair summary” released after the conclusion of G20 meeting also touched upon the issue of debt resolution without naming China.
We re-emphasise the importance of addressing debt vulnerabilities in low and middle-income countries in an effective, comprehensive and systematic manner. We continue to stand by all the commitments made in the Common Framework for Debt Treatments.
India, France will develop new gen military equipment says French envoy (Page no. 7)
(GS Paper 2, International Relation)
India and France will develop new generation military equipment as part of a long-term roadmap agreed upon during Prime Minister Narendra Modi’s visit to Paris, French Ambassador to India Emmanuel Lenain said.
The French envoy also said that there is “real” political consensus in France on enhancing ties with India as he cited Modi’s meetings with President of the French Senate Gérard Larcher, President of French National Assembly Yaël Braun-Pivet and Prime Minister Élisabeth Borne.
“It shows that when it comes to India in France, there is real consensus. There is no difference. Everybody is so supportive and that is one of the trademarks of this partnership,” Lenain said at a media briefing.
Prime Minister Modi visited Paris on July 13 and 14 during which both sides reaffirmed their commitment to expand overall strategic cooperation including in defence.
Defence cooperation has always been very important for the two countries as we feel that in order to be independent, we have to be secure. And in order to be secure, we need good equipment and technologies.
The Defence Acquisition Council, headed by Defence Minister Rajnath Singh, on July 13 accorded the approval for the purchase of 26 Rafale-M (naval variant) and the three-Scorpene submarine from France.
Editorial
Delhi is raising the game (Page no. 10)
(GS Paper 2, International Relation)
As India’s great power relations gain new momentum — so visible during the recent visits of Prime Minister Narendra Modi to Washington and Paris — Delhi continues to raise its game in the Asian neighbourhood.
This is rooted in an important recognition in Delhi that the intersection of great power rivalry with regional geopolitics needs continuous tending.
Modi’s decision to stop in Cairo on his way back from Washington and Abu Dhabi as he came home from Paris suggests Delhi is in no mood to slow down in Africa, Asia and the waters that connect them — the Indo-Pacific.
External Affairs Minister Subrahmanyam Jaishankar spent nearly a week in Jakarta and Bangkok, engaging with India’s East Asian partners in various formats.
These include the Association of South East Asian Nations (ASEAN), the ASEAN “plus one” meeting, the East Asia Summit (EAS), the ASEAN Regional Forum (ARF), the forum for Mekong Ganga Cooperation (MGC), and the Bay of Bengal Initiative for Multi-sectoral Technical and Economic Cooperation (BIMSTEC).
Although the focus of India’s engagement with the US and France was on defence and advanced technologies, India’s neighbourhood figured prominently in both Washington and Paris.
In Paris, for example, PM Modi and President Emmanuel Macron issued a declaration on the Indo-Pacific Roadmap for wide-ranging cooperation.
The statement builds on the ambitious regional agenda in the Indian Ocean that Modi and Macron outlined when the French president visited India in 2018.
That was the first time that India agreed to work together with a former European colonial power in the Indian Ocean. It involved discarding the near-sacred principle in the Indian foreign policy liturgy — that colonial and “extra-regional” powers should be kept out of the Indian Ocean.
Ideas Page
An economy more future ready (Page no. 11)
(GS Paper 3, Economy)
With Covid-19 receding and, hopefully, with Russia-Ukraine War coming to an amicable end soon, India needs to chalk out her future strategy of growth.
The broad objective must be to raise the per capita income, estimated in 2022-23 at $2,379, by almost six times over the next 25 years.
That will enable people to have a higher standard of living and eliminate poverty. The critical question now is to identify the challenges that the country will face in reaching this goal and the actions it needs to take to overcome them.
In short, what is needed is a continuous growth of 7 per cent for the next 25 years. Assuming an incremental capital-output ratio (ICOR) of 4, this will require a Gross Fixed Capital Formation rate of 28 per cent.
However, the ratio of 4, which is often assumed, is on the basis of improved efficiency in the use of capital. During the high-growth period in the early years of this century, the ratio was low.
It has subsequently increased. Excluding two outlier years namely, 2019-20 and 2020-21, the average ICOR over five years from 2016-17 to 2022-23 is estimated to be 4.65.
ICOR is the result of many factors, including technology. The required investment rate in the next 25 years may be in the range of 30-32 per cent of GDP. We need to work towards it.
This should not be difficult since we have achieved this level earlier. According to the latest release of NSO, the Gross Fixed Capital Formation rate in current prices for 2022-23 is 29.2 per cent of GDP.
While recognising that public investment has picked up, it is necessary to emphasise that the investments by the business sector, both corporate and non-corporate, must increase.
The composition of investment is also relevant. Investment must flow into sectors and segments which are crucial to promote growth and employment generation.
While foreign direct investment must be welcomed, particularly in the newly emerging technological sectors, bulk of the investment must come from within — this has all along been the case in India.
Express Network
Rajasthan govt tables bill to guarantee minimum income (Page no. 12)
(GS Paper 3, Economy)
Aiming to support individuals and households of the state with an “additional income”, the Ashok Gehlot government on Tuesday tabled the Rajasthan Minimum Guaranteed Income Bill, 2023.
The Bill largely covers three broad areas: Right to Minimum Guaranteed Income, Right to Guaranteed Employment and Right to Guaranteed Social Security Pension.
First announced by Chief Minister Ashok Gehlot in his budget speech earlier this year, the Bill is part of a bouquet of schemes and measures undertaken by his government to provide relief to citizens from inflation with an eye on polls later this year.
The Right to Minimum Guaranteed Income under the Mahatma Gandhi Minimum Guaranteed Income Yojana or MGMGIY, as the scheme brought under this Act will be called, states that the state government shall provide to eligible persons a minimum guaranteed income through this scheme by providing employment in urban areas through the Indira Gandhi Urban Employment Guarantee Scheme (IGUEGS) and in rural areas through Chief Minister Rural Employment Guarantee Scheme (CMREGS) or by providing pension to an eligible category of old age/specially abled/widow/single woman.
Explained
Why Kuno cheetahs are at risk due to radio collars (Page no. 13)
(GS Paper 3, Environment)
After two cheetahs died of suspected septicaemia from festering neck wounds caused by radio collars in Kuno last week, similar injuries have been spotted in at least another three animals — Oban, Elton, and Freddie.
This setback for the reintroduction project has baffled many who are used to routinely collaring wild cats for monitoring and research both in India and Africa.
Carrying something on the body for long has its downsides. A study published in the Journal of Clinical and Diagnostic Research found a significantly higher presence of Staphylococcus aureus bacteria on the wrists of watch wearers compared to others.
Pet dogs get acute moist dermatitis or hot spots. Hot spots are often triggered or aggravated by a tick or flea bite, and can worsen rapidly.
They are common under collars, and a wet coat makes the condition worse. Tight-fitting collars can cause pressure necrosis — think bedsores — that begins with rapid loss of hair around the neck.
Since the 1970s, satellite telemetry has made it possible to monitor individual birds and animals over continental distances. These tracking devices have become lighter and more sophisticated over time — so much so that there are VHF radio telemeters for even insects today.
Economy
India mulls building strategic gas storage as hedge against voltality (Page no. 15)
(GS Paper 3, Economy)
India is exploring building strategic natural gas storage facilities in the country on the lines of strategic crude oil reserves in a bid to have a large gas stockpile that can be utilised in emergencies and supply disruptions, and serve as a hedge against extreme price volatility in the international market.
According to Petroleum Secretary Pankaj Jain, the idea is at a preliminary stage and a few global players specialising in gas storage have been approached to develop the proposal.
India already has strategic crude oil reserves with a capacity to hold 5.33 million tonnes of oil in underground caverns, fit to meet around 9.5 days of the country’s oil demand.
The capacity is being expanded by another 6.5 million tonnes in the second phase of the project. The country, however, has no strategic natural gas storage facilities even as its gas consumption is expected to grow significantly over the next few years.