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India’s retail inflation rate eased to 6.83 per cent in August from a 15-month high of 7.44 per cent in July 2023, mainly due to a slide in prices of food items, especially vegetables, data released by the National Statistical Office (NSO) showed.
The inflation print, however, continued to remain above the upper limit of the 4+/- 2 per cent band of Reserve Bank of India’s medium-term inflation target, making it the fourth instance of headline inflation staying higher than the upper limit of the target during this calendar year and the seventh such instance since August 2022.
Meanwhile, factory output grew to a five-month high of 5.7 per cent in July due to strong performance of manufacturing, mining and electricity sectors, separately released data by NSO showed.
Manufacturing, which accounts for 77.6 percent of the weight of the IIP, grew by 4.6 per cent in July as against 3.1 per cent each in the year-ago period and month ago. Mining and electricity output grew at 10.7 per cent and 8 per cent, respectively.
On the retail inflation front, which is tracked closely by the RBI for monetary policy, vegetables inflation provided some relief by moderating to 26.14 per cent in August from 37.34 per cent in July, while cereals and products inflation also eased to 11.85 per cent from 13.04 per cent in the previous month.
The retail inflation rate in August was 13.04 per cent in case of pulses and products, 7.73 per cent for milk and products, 23.19 per cent for spices, 5.31 per cent for prepared meals, snacks, sweets etc., and (-)15.28 per cent for oils and fats.
Govt & Politics
SC rejects Govt plea to defer hearing on validity of sedition until house decision (Page no. 7)
(GS Paper 2, Judiciary)
The Supreme Court said petitions challenging the constitutional validity of sedition law — Section 124A of the Indian Penal Code — need to be heard by a five-judge Constitution bench and directed that they be placed before the Chief Justice of India for this.
The submissions which have been urged on behalf of the petitioners would merit consideration by a bench of at least five judges of this court. W
e accordingly direct the Registry to place the papers before the Chief Justice so that an appropriate decision can be taken on the administrative side for the constitution of a bench of strength of at least five judges in the present case.
The bench, also comprising Justices P S Narasimha and Manoj Misra, said that a reference to a larger bench was needed in view of the fact that the provision was upheld in 1962 by a five-judge bench in the Kedar Nath Singh vs State of Bihar case and it would not be appropriate for a three-judge bench to sit in judgement over it.
In our view, the appropriate course of action for a three-judge bench of this court would be to direct that the papers be placed before the chief Justice so that if so considered appropriate, the batch of cases can be heard by a bench of at least five judges since the decision in Kedar Nath Singh’s case, was by a constitution bench.
South Korea committed to boosting defence ties with India says envoy (Page no. 7)
(GS Paper 2, International Relation)
South Korea is willing to share technology on submarines and missile systems with India to strengthen defence cooperation.
Briefing the media about the meeting between the South Korea President Yoon Suk Yeol and Prime Minister Narendra Modi on the sidelines of the G20 Summit over the weekend, the envoy said the two leaders had “productive discussions”. The meeting between the two leaders was scheduled for 20 minutes but lasted more than 40 minutes, the envoy added.
Both leaders agreed to strengthen cooperation in defence, said Chang Jae Bok, referring to K9 Vajra, a 52-calibre tracked self-propelled howitzer designed by a South Korean company.
South Korea is “totally committed” to expanding its defence cooperation with India, the envoy said, adding the two leaders also agreed to improve strategic communication and cooperation.
South Korea will provide USD 4 billion to India as a line of credit over the next three years for “high-value” projects.
LAC focus as Rajnath inaugurates 90 border infrastructure projects (Page no. 8)
(GS Paper 3, Defence)
As many as 90 border infrastructure projects – from the Nechiphu tunnel that will provide all-weather connectivity to the strategic Tawang region of Arunachal Pradesh to the foundation stone for a key military airfield in eastern Ladakh’s Nyoma – across 11 states and Union Territories were inaugurated Tuesday by Defence Minister Rajnath Singh.
Of the 90 projects of the Border Roads Organisation, 64 are in Arunachal Pradesh, Ladakh and Sikkim. These projects will help in faster mobility of troops and equipment to the Line of Actual Control in case of a contingency while also improving overall connectivity for the population.
Inaugurating the projects via virtual mode at an event in Samba in Jammu, Rajnath Singh said the Nyoma airfield “will act as a staging ground for Indian troops at forward posts in eastern Ladakh… and will be a game-changer for our armed forces”.
In the last three years, India has ramped up infrastructure development along the LAC, both in eastern Ladakh and the North-East.
The projects include 11 in Jammu and Kashmir, five in Mizoram, three in Himachal Pradesh, two each in Uttarakhand and West Bengal and one each in Nagaland, Rajasthan and Andaman and Nicobar Islands.
Editorial
A privacy report card (Page no. 10)
(GS Paper 2, Judiciary)
After over half a decade of deliberations and numerous iterations of India’s data protection law, both houses of Parliament passed the Digital Personal Data Protection Act last month.
This comes almost exactly six years after the judgment in K S Puttaswamy vs Union of India, where the Supreme Court (SC) reaffirmed the right to privacy and stressed the need for a dedicated data protection law.
The Puttaswamy judgment formed the cornerstone of privacy jurisprudence in the country, holding that the right to privacy was an integral part of the fundamental rights under the Indian Constitution.
Six separate opinions of the Court spelt out an expansive interpretation of the right to privacy. The Court construed privacy not as a narrow right against physical invasion, but as one that includes the body and mind, enables us to make free decisions, and is deeply tied to human dignity and autonomy.
This conception of privacy recognises how central it is to our daily lives. Privacy enables us to make meaningful choices, for example concerning our sexual and reproductive health, choice of partners, and control over personal information. Six years after this rich conception of privacy was established, we ask — how has the right to privacy evolved in the SC?
Ideas Page
Africa at the high table (Page no. 11)
(GS Paper 2, International Relation)
The singular act of admitting the largest developing country regional grouping — the African Union (AU) — into the G20, has given its 18th Summit under India’s dynamic presidency a special place in the history of global economic and financial governance.
In one stroke, the second-largest continent, Africa, with a population more than that of India and China, gets wholly represented in an elite decision-making body.
It adds to the sheen of Bharat G20 being the most ambitious of presidencies with 111 outcomes and presidency documents, tripling the substantive work for India, the Global South and the global kutumbakam.
AU’s entry as the 21st entity, adds weight and potential. G20 now covers nearly 80 per cent of the world’s population, has 97 out of the UN’s 193 countries, 88 per cent of GDP and 79 per cent of trade share. It balances the developed country regional grouping of 27 countries, the EU.
Express Network
Nipah kills 2 in Kerala, 2 more test positive (Page no. 12)
(GS Paper 2, Health)
Nipah has killed two people and at least two others — a nine-year-old boy and a 25-year-old man — have been found infected by the virus and are under treatment in Kerala’s Kozhikode district. The minister said seven people are under treatment and one of them is serious.
Availability of monoclonal antibodies for treatment of the patients has been ensured with the help of ICMR, and the state government confirmed the infection after getting test results of the samples that had been sent to NIV-Pune.
The contact list of one the deceased has 168 people, and the second has 158, George said. Of them, 127 are health workers. Efforts are on to identify all people who had come into contact with the infected persons.
The minister said an alert has been sounded in Kannur, Wayanad and Malappuram districts in the wake of detection of the virus in Kozhikode.
Three Central teams are expected to reach Kerala on Wednesday and NIV-Pune will set up a mobile laboratory to speed up testing of samples.
For G20 leaders a hamper full of India’s rich crafts organic produce (Page no. 12)
(GS Paper 2, International Organisation)
The world leaders who had assembled in Delhi for the G20 Summit last weekend were offered a peek into India’s traditions and diversity through a multitude of gifts.
These included several handcrafted items selected from across the country such as the famous ittar from Kannauj, saffron from Kashmir, Araku coffee from Andhra Pradesh and tea from the Nilgiris.
All these items were packed in a sandook (chest) with brass detailing. Sources said the sandook holds a special place in Indian cultural, besides being an epitome of exquisite workmanship. The chest was handcrafted using sheesham (Indian rosewood), valued for its durability and grain pattern.
The chest contained a pack of saffron from J&K, which is considered the most expensive spice in the world and is valued across civilisations for its culinary and medicinal value.
Two varieties of tea were sourced from Darjeeling and Nilgiris; Araku coffee growing on organic plantations in the Araku Valley of Andhra Pradesh was also a part of the hamper.
From the Sundarbans — the largest mangrove forest in the world, located in the Bay of Bengal — came the special honey harvested by the traditional honey collectors.
Besides being 100 per cent natural, the Sundarban honey is also believed to provide health benefits. The Zighrana Ittar from Uttar Pradesh’s Kannauj showcases India’s centuries-old tradition of exquisite perfume crafting.
IISC develops technique to detect cancer early, killing infected cells (Page no. 13)
(GS Paper 3, Science and Technology)
In a boost to cancer research, scientists at the Indian Institute of Science (IISc) have proposed a novel approach for cancer treatment with a potential of early detection and killing of lung and cervical cancer cells.
World over, cancer is one of the highest causes of mortality. Numerous studies have warned about its rising burden in both developing and developed countries.
A study published in the Bio Medical Central Journal in May 2022 has estimated India’s cancer cases to touch 29.8 million by 2025. It stated that the disease burden would be the highest among the populations in North and northeast India.
Moreover, over 40 per cent of India’s total cancer burden would be contributed by the seven leading cancer sites — lung (10.6%), breast (10.5%), oesophagus (5.8%), mouth (5.7%), stomach (5.2%), liver (4.6%), and cervix uteri (4.3%).
Researchers exploited the anti-cancerous properties in the hybrid gold and copper sulphide nanoparticles, particularly to target malignancy progressing to form a solid tumour mass in the body.
These particles, scientists said, are rich in photothermal, oxidative stress and photoacoustic properties — combining which showed high cancer detection rate.
Explained
Double whammy: High inflation, falling consumer sentiment (Page no. 15)
(GS Paper 3, Economy)
Prime Minister Narendra Modi has successfully turned the routine rotational presidency of the G20 into an event to showcase India’s growing economic might. However, domestically, data suggests that consumer sentiment has taken a beating over the past month.
The timing could not be worse since India is just starting its annual festive season — the period when the economy often witnesses a surge in shopping.
What has not taken a beating is retail inflation. All evidence points to the fact that August’s retail inflation — which will be announced Tuesday evening — will again be over 7%.
Lastly, moving away from these very short-term developments, a new research paper has found some rather humbling projections for India’s GDP growth rate over the coming decade.
According to the Centre for Monitoring Indian Economy’s (CMIE) Economic Outlook, consumer sentiments fell by 1.5 per cent in August 2023.
Consumer sentiments were rising every month since January 2023. The average monthly growth in consumer sentiments in India during the January-July months of 2023 was 2.6 per cent.
G20s climate action promise (Page no. 15)
(GS Paper 3, Environment)
The only new and clear deliverable on climate action at the recent G20 summit was a commitment to work towards tripling global renewable energy capacity by 2030.
According to an assessment by the International Energy Agency (IEA) earlier this year, this single measure could prevent 7 billion tonnes of carbon dioxide emissions by 2030. Not surprisingly, in the past few years, countries have been repeatedly urged to accept this as a goal.
Incidentally, tripling of renewable capacities was also among the lowest-hanging fruits available to the G20 grouping on the climate front, despite some initial reservations from traditional fossil fuel-producing countries like Russia and Saudi Arabia.
Renewable energy is already being deployed at a rapid pace across the world, with annual capacity additions growing by around 10% every year. And though the push no doubt came from the developed countries, there is no inherent objection to the deployment of renewable energy from the developing countries.
Gadkari mentions tax on diesel vehicles: Why is the fuel under pressure (Page no. 15)
(GS Paper 3, Economy)
Road Transport Minister Nitin Gadkari said that people needed to move away from fuels such as petrol and diesel, and that if the use of diesel-run vehicles (and equipment such as diesel-run generators) continued, he might consider proposing to the Finance Minister that an additional 10% GST be imposed on these vehicles as “pollution tax”.
However, Gadkari clarified soon afterwards that “there is no such proposal currently under active consideration by the government”.
In line with the government’s commitments to reducing air pollution levels caused by hazardous fuels like diesel, as well as the rapid growth in automobile sales, it is imperative to actively embrace cleaner and greener alternative fuels.
Auto stocks plunged immediately after the announcement. This is because, despite the clarification, the Minister’s statement was broadly in line with the pushback in policy circles against diesel, and came a little over three months after a committee appointed by the Ministry of Petroleum and Natural Gas recommended a ban on diesel four-wheel vehicles by 2027 in cities with a population of more than 1 million.
The government already imposes a 28% tax on diesel cars, plus an additional cess depending on the engine capacity, taking the total tax to almost 50%.
Economy
Singapore, US UK top the outbound investment list, includes 3 tax havens (Page no. 19)
(GS Paper 3, Economy)
Singapore was the largest beneficiary of outward direct investment (ODI) by Indian firms with the country getting Rs 2.03 lakh crore ($ 24.48 billion) or 22.3 per cent of the total ODI during the financial year 2023.
Total outward direct investment by Indian firms rose by 19.46 per cent to Rs 9.11 lakh crore ($ 109 billion) in FY2023 as against Rs 7.62 lakh crore last year, data from a Reserve Bank of India study shows.
The US received Rs 1.24 lakh crore (13.6 per cent share) and the UK got Rs 1.16 lakh crore (12.8 per cent) as ODI from India in FY2023. The top ten countries accounted for as much as 85 per cent of the ODI. Switzerland received Rs 28,228 crore ($ 3.40 billion).
Significantly, three jurisdictions known for tax benefits are in the top ten countries that received Indian ODI. Bermuda received Rs 12,582 crore ($ 1.51 billion), Jersey Rs 11,661 crore ($1.40 billion) and Cyprus Rs 9,985 crore ($1.20 billion), RBI data shows.
Bermuda, for example, imposes no taxes on profits, income, dividends, or capital gains. It has no limit on the accumulation of profit, and has no requirement to distribute dividends, according to a PWC report.
Gadkari talks of 10% more tax on diesel vehicles but no proposal under govt consideration yet (Page no. 19)
Road Transport Minister Nitin Gadkari said on Tuesday (September 12) that people needed to move away from fuels such as petrol and diesel, and that if the use of diesel-run vehicles (and equipment such as diesel-run generators) continued, he might consider proposing to the Finance Minister that an additional 10% GST be imposed on these vehicles as “pollution tax”.
World
Kim Jong Un arrives in Russia amid US warning against sale of weapons
(GS Paper 2, International Relation)
North Korean leader Kim Jong Un has arrived in Russia, for what the Kremlin said would be a comprehensive discussion with President Vladimir Putin amid warnings from Washington they should not agree on an arms deal.
Kim left Pyongyang for Russia on Sunday on his private train, the North’s state media reported on Tuesday, accompanied by top arms industry and military officials.
A Russian source with knowledge of the trip told Reuters Kim arrived in Russia on Tuesday morning, leaving his train to meet local officials in Khasan, the main rail gateway to Russia’s Far East, before continuing on.
Kim’s arrival was also reported on Tuesday by Russia’s state television Rossiya 1, which showed a train purported to be carrying the North Korean leader – with its signature olive green paint scheme – crossing a bridge.
Kim does not travel abroad frequently, making just seven trips away from his country and twice stepping across the inter-Korean border in his 12 years in power. Four of those trips were to the North’s main political ally, China.