Monthly Current Affairs November 2019

Easy to PICK201 - “UPSC Monthly Magazine” found the HLAG report. Restrictive labour laws prevent larger scale of operations. Poor logistics result in turnaround time in India being over four times that in China or Turkey. What is India’s story in terms of imports? Shares of electronic items and engineering goods in total imports have grown. Domestic production indicators show a fall in capital goods production. This means imports are substituting domestic machinery. Even though imports of oil are lower than those of last year, its share in total imports has risen from 23.8% in the first six months of FY16 to 26.3% during the corresponding period of FY20. This means other imports are falling at a faster rate.

Easy to PICK202 - “UPSC Monthly Magazine” Nod for defence purchase worth ₹22,800 cr. Syllabus subtopic: Indigenization of  These platforms would provide on-board technology and developing new technology. command and control and ‘early News: The Defence Acquisition Council warning’, which would assist the IAF in (DAC), chaired by Defence Minister achieving effective air space dominance Rajnath Singh, met on Thursday and in the least possible time, the statement approved the procurement of weapons and said. The new systems are likely to be equipment worth ₹ 22,800 crore. mounted on Airbus aircraft. Prelims and Mains focus: about the Indigenous design equipments procured and their use in The DAC approved the indigenous design, defence, about DAC, DRDO development and manufacture of ‘thermal imaging night sights’ for assault rifles, and About the equipments to be procured: these will be made by the “Indian private industry and used by troops deployed on the  Among them are six additional P-8I front line.” It also approved the procurement long-range patrol aircraft to be of twin-engine heavy helicopters for the procured from the U.S. for the Navy and Coast Guard. additional indigenous Airborne Warning and Control System Defence Acquisition Council (DAC): (AWACS) aircraft for the Indian Air What is it? To counter corruption and speed Force (IAF). up decision- making in military procurement, the government of India in  As a follow-up to the successful 2001 decided to set up an integrated DAC. It indigenous Airborne Early Warning and is headed by the Defence Minister. Control (AEW&C) programme, the Objective: The objective of the DAC is to DAC revalidated the Acceptance of ensure expeditious procurement of the Necessity (AoN) for the procurement of approved requirements of the Armed Forces, additional AWACS aircraft,. The mission system and sub-systems for these aircraft would be indigenously designed, developed and integrated into the main platform by the Defence Research and Development Organisation (DRDO).  The IAF now operates three Israeli Phalcon AWACS and three smaller indigenous Netra AEW&C systems mounted on Embraer aircraft. A shortage of these force multipliers was felt during the aerial engagement with the Pakistan Air Force, a day after the Balakot air strike in February.

Easy to PICK203 - “UPSC Monthly Magazine” in terms of capabilities sought, and time with the Defence Science Organisation frame prescribed, by optimally utilizing the (DSO) allocated budgetary resources.  Starting with 10 laboratories, DRDO has Functions: The DAC is responsible to give now grown to a network of 52 policy guidelines to acquisitions, based on laboratories which are deeply engaged in long term procurement plans. It also clears developing defence technologies all acquisitions, which includes both covering various disciplines, like imported and those produced indigenously aeronautics, armaments, electronics, or under a foreign license. combat vehicles, engineering systems, instrumentation, missiles, advanced About DRDO computing and simulation, special  DRDO works under the administrative materials, naval systems, life sciences, training, information systems and control of Ministry of Defence, agriculture. Government of India.  Presently, the Organisation is backed by  It is working to establish world class over 5000 scientists and about 25,000 science and technology base for India other scientific, technical and supporting and provides our Defence Services personnel. decisive edge by equipping them with  Several major projects for the internationally competitive systems and development of missiles, armaments, solutions. light combat aircrafts, radars, electronic Genesis & Growth warfare systems etc are on hand and  DRDO was established in 1958 after significant achievements have already combining Technical Development been made in several such technologies. Establishment (TDEs) of the Indian Army and the Directorate of Technical Mission Development & Production (DTDP)  Design, develop and lead to production state-of-the-art sensors, weapon systems, platforms and allied equipment for our Defence Services.  Provide technological solutions to the Services to optimise combat effectiveness and to promote well-being of the troops.  Develop infrastructure and committed quality manpower and build strong indigenous technology base. Issues with DRDO  The Standing Committee on Defence during 2016-17, expressed concerns over the inadequate budgetary support for the ongoing projects of DRDO.  The committee notes that out of total defence budget, the share of DRDO was

Easy to PICK204 - “UPSC Monthly Magazine” 5.79 per cent in 2011-12, which reduced the Armament Research and Development Establishment (ARDE), to 5.34 per cent in 2013-14. revenue Pune, in the last 15 years costing Rs 320  Government’s lethargic crore because the products did not meet their standard and requirement. commitments towards DRDO have put  The technology development agency is also largely responsible for the fact major projects involving futuristic highlighted by General V.K. Singh that 97 per cent of the army's air defence is technology on hold. obsolete.  DRDO is just tinkering with World War  The DRDO also suffers from inadequate II equipment instead of working on cutting-edge technology. manpower in critical areas to the lack of  Even if systems are acquired from abroad and DRDO is meant to service proper synergy with the armed forces. them, if it fails. This leaves critical gaps in national defence.  Cost escalation and long delays have damaged the reputation of DRDO. Way Forward  DRDO should be restructured in a leaner  Even after 60 years of DRDO formation, India still imports a large share of its organisation as suggested by the defence equipments. In the period 2013- committee chaired by P. Rama 17, India is the world’s largest importer Rao for external review of the agency in of defence equipment, accounting for February 2007. 12% of the global total, according to the  The committee also recommended for Stockholm International Peace Research setting up a commercial arm of the Institute. organisation to make it a profitable entity, besides cutting back on delays in  DRDO's list of successes is short- completing projects. primarily the Agni and Prithvi missiles.  DRDO former chief V.K. Saraswat has Its list of failures is much longer. The called for the setting up of a Defence Kaveri Engine is running late by 16 Technology Commission as well as a years and the cost has escalated by bigger role for DRDO in picking around 800 per cent. production partners for products developed by the agency.  DRDO is big on promise and small on  DRDO should be able to select a capable delivery. There is no accountability. partner company from the outset, from Nobody is taken to task for time and cost the private sector if necessary. overruns.  DRDO has taken some steps in the direction as it is considering long-term  In 2011, the Comptroller and Auditor contracts with Indian information General (CAG) put a serious question technology (IT) vendors such as Tata mark on DRDO’s capabilities. \"The Consultancy Services Ltd (TCS) to build organisation, which has a history of its software solutions for defence projects, projects suffering endemic time and cost shifting its strategy of awarding deals to overruns, needs to sanction projects and decide on a probable date of completion on the basis of a conservative assessment of technology available and a realistic costing system,\" its report stated.  The CAG report also revealed that not all technologies developed by DRDO were suitable for use by the armed forces. The three services have rejected 70 per cent of the products developed at

Easy to PICK205 - “UPSC Monthly Magazine” the lowest bidders on short-term projects.  DRDO’s move to outsource is a right move and will open lot of opportunities benefiting the Indian companies.  In Its document \"DRDO in 2021: HR Perspectives’’, DRDO has envisaged a HR policy which emphasized on free, fair, and fearless Knowledge Sharing, Open book management style and Participative Management. This is a step in right direction.

Easy to PICK206 - “UPSC Monthly Magazine” GDP growth plunges to 4.5%, lowest since 2012 Syllabus subtopic: Indian Economy and financial year, compared with a robust issues relating to planning, mobilization of resources, growth, development and growth of 6.9% in the same quarter of employment. the previous year. The manufacturing News: Growth in the gross domestic product (GDP) in the July-September quarter hit a sector saw an overall contraction of 25-quarter low of 4.5%, the government announced on Friday. 0.2% in the first half (April to Prelims and Mains focus: about the recent September) of the current financial year economic slowdown in the Indian economy, challenges and ways to address them; GDP compared to a growth of 9.4% in the v/s GVA first half of last year. Context:  The lowest GDP growth in six years and  The agriculture sector saw growth three months comes as Parliament has coming in at 2.1% in second quarter of been holding day-long discussions on the economic slowdown, with Union this year compared with 4.9% in Q2 of Finance Minister Nirmala Sitharaman assuring the Rajya Sabha that the last year. The sector grew just 2.1% over country is not in a recession and may not ever be in one. the first six months of the year compared  Growth in gross value added (GVA) also with 5% in the first half of the previous dipped to 4.3% in Q2 of 2019-20 from 4.9% in Q1, and 6.9% in the Q2 of last year. year.  Among the services sectors measured, Performance of various sectors: only the ‘Public Administration,  The manufacturing sector contracted Defence & Other Services’ category saw 1% in the second quarter of the current growth quicken in the second quarter of this year, to 11.6%, compared with 8.6% in the same quarter of the previous year.  The ‘Financial, Real Estate & Professional Services’ category saw growth slow to 5.8% in Q2 of 2019-20, compared with 7% in Q2 of the previous year.  Private final consumption expenditure, the closest proxy in the data to a measure of consumption demand, grew 5.06% in the second quarter of this financial year, compared with a growth of 3.14% in the first quarter. However, the growth in the second quarter this year is still significantly lower than the growth of 9.79% recorded in the second quarter of the previous year.  Gross fixed capital formation (GFCF), which is a measure of the level of investment in the country by both the government and the private sector,

Easy to PICK207 - “UPSC Monthly Magazine” grew only 1.02% in the second quarter  Since the mode of measuring GDP is of this financial year, compared with a uniform from country to country, GDP growth of 4.04% in the first quarter, and can be used to compare the productivity drastically lower than the growth of of various countries. 11.8% seen in the Q2 of last year. GVA Government’s take on the status of the  The term that is used to denote the net economy  Union Finance Minister Nirmala contribution made by a firm is called its value added Sitharaman assured the Rajya Sabha that  The raw materials that a firm buys from another firm which are completely used the country is not in a recession and may up in the process of production are called ‘intermediate goods’. not ever be in one.  Therefore the value added of a firm is, value of production of the firm – value  The fundamentals of the Indian economy of intermediate goods used by the firm.  Gross value added (GVA) is defined as remain strong and GDP growth is the value of output less the value of intermediate consumption. expected to pick up from the third  Value added represents the contribution of labor and capital to the production quarter of FY 2019-20. process.  When the value of taxes on products  The International Monetary Fund has (less subsidies on products) is added, the projected India’s GDP growth at 6.1% in sum of value added for all resident units gives the value of gross domestic financial year 2019-20 and 7% in product (GDP).  Thus, Gross value added (GVA) = GDP 2020-21 in its October 2019 report. + subsidies on products - taxes on products GDP v/s GVA GDP Note: GDP at factor cost = Gross value  Gross domestic product (GDP) is the added (GVA) at factor cost GDP at market price = GDP at factor cost + net indirect monetary value of all the finished goods taxes (indirect taxes- subsidies) GVA at and services produced within a country's factor cost = value of output (quantity * borders in a specific time period. price) - value of intermediary consumption.  GDP includes all private and public consumption, government outlays, investments, private inventories, paid-in construction costs and the foreign balance of trade (exports are added, imports are subtracted)  Thus the components of GDP are (C) plus Investment (I) plus Government Spending (G) plus BOP i.e. Exports minus Imports (X-M)  GDP is calculated using this standard formula: C + I + G + (X-M).  GDP is commonly used as an indicator of the economic health of a country, as well as to determine a country's standard of living

Easy to PICK208 - “UPSC Monthly Magazine” FASTag deadline extended Syllabus subtopic: Science and Technology- developments and their applications and effects in everyday life. Achievements of Indians in science & technology; indigenization of technology and developing new technology. News: The government on Friday extended till December 15 the deadline for making FASTag mandatory for toll payments on national highways. Prelims and Mains focus: about FASTag and its advantages, about NHAI Background  Earlier, all lanes, except one on each side, at all NHAI toll plazas were to be declared as dedicated FASTag lanes from December 1.  The National Highways Authority of India, in a statement, said many citizens had not enabled their vehicles with FASTags due to which the decision was deferred till December 15.  It was earlier decided that any motorist entering the dedicated FASTag lane without the tag would be charged double the toll fee from December 1, but the NHAI made it clear that the “charging of double fee will start from December 15”.

Easy to PICK209 - “UPSC Monthly Magazine” About NHAI  NHAI is an autonomous agency of the Union Government, responsible for management of a network of over 70,000 km of national highways in India.  It was established through National Highways Authority of India Act, 1988.  In February 1995, it was formally made an autonomous body.  It is a nodal agency of the Union Ministry of Road Transport and Highways.  It is responsible for the development, management, operation and maintenance of National Highways.