21-10-2020

21-OCTOBER-2020

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The Hindu News Analysis – 21st October 2020 – Shankar IAS Academy

S. Page Number*
News Articles
No. C B D H T

1 Flawed Foreigners Tribunal (OPED) 9 9 7 9 9

2 Offset dilution in defence, a flawed policy turn (Editorial) 8 8 6 8 8

3 The many bright spots on India’s innovation horizon (Editorial) 8 8 6 8 8

4 WII scientists anxious about potential funding cut 12 12 1 12 12

5 FDI blooms in COVID-19 gloom 1,10 1,10 1,8 1,10 1,10

6 Prelims Practice Questions

@ end of the video
7 Mains Practice Questions
*C – Chennai; B – Bengaluru; D – Delhi; H –©Hyderabad; T – Thiruvananthapuram
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Pg: 9 – C, B, H, T; Pg: 7 – D; © Shankar IAS Academy

Part A—Preliminary Examination

Paper I - (200 marks)
 Current events of national and international importance.
 Indian Polity and Governance- Constitution, Political System, Panchayati Raj, Public
Policy, Rights Issues, etc.
Part B—Main Examination
PAPER-III
General Studies- II: Governance, Constitution, Polity, Social Justice and International
relations.
• Indian Constitution—historical underpinnings, evolution, features, amendments,
significant provisions and basic structure.
• Statutory, regulatory and various quasi-judicial bodies.
• Government policies and interventions for development in various sectors and issues
arising out of their design and implementation.

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Background
Foreigners (Tribunals) Amendment Order, 2019
• National Register of Citizens (NRC) was published
• The Centre or State Government or the Union
in Assam on 31st August 2019.
territory administration or the District Collector
 19 lakh applicants were excluded - can or the District Magistrate may constitute FTs.

appeal in the Foreigners’ Tribunals. • Empowered individuals to approach the tribunals.

Foreigners’ Tribunals
• Final order of the tribunal on whether the person
• Foreigners (Tribunals) Order, 1964: issued by the is a foreigner or not shall be given within a
Centre under Section 3 of The Foreigners Act, period of “120 days” from the date of production
1946. of the records.

• The Foreigners Act, 1946 - a “foreigner” is a Issues with Foreigners’ Tribunals

person who is not a citizen of India.
• Gives ex parte orders- inconsistent, vague and
• Burden of proof lies with the accused. biased.

• FT has the powers of a civil court while trying a • Follows set templates- individual cases were not
suit under the Code of Civil Procedure 1908. given enough importance.
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• Unbelievable description given by the police such

as suspects failed to produce documents for
their citizenship.

• Tribunal passes ex-parte order even when police

could not serve notice to suspected foreigners
to appear before the tribunal

• Suspected foreigners are mostly not allowed to

refute the allegations made against them.

• Unnecessary delays at the hand of police in

serving notice to the accused and unnecessary
haste by judges in passing ex parte order.

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Pg: 8 – C, B, H, T; Pg: 6 – D; © Shankar IAS Academy

Part A—Preliminary Examination

Paper I - (200 marks)
 Current events of national and international importance.
 Indian Polity and Governance-Constitution, Political System,
Panchayati Raj, Public Policy, Rights Issues, etc.
Part B—Main Examination
PAPER-III
General Studies- II: Governance, Constitution, Polity, Social
Justice and International relations.
• Government policies and interventions for development in
various sectors and issues arising out of their design and
implementation.
• Bilateral, regional and global groupings and agreements
involving India and/or affecting India’s interests.

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Defence Acquisition Procedure, 2020

Focus: • Significance:

• Simplify the defence acquisition procedure and  India- one of the world’s greatest importer
institutionalise monitoring mechanism using digital of defence goods.
technologies & data base.
 Access to modern technology.
• Increase participation of Indian Vendors including
 Part of contact value will be invested in
MSMEs in line with ‘Make in India’ initiative.
India- develop skills, bring in technology and
Offset Policy in defence procurement generate employment.

• Aim: To provide additional benefits to the buyer  Boost R&D in indigenous defence industry.
of a product from a foreign supplier.
 Price and terms of the contract are major
• India’s defence offset policy factors- reflect the government’s relative

 Aim: To make the defence sector self- bargaining strength.

sufficient and not dependent on imports.

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• Requirements under 2005 offset clause are,

 Sourcing 30% of the value of the contract • Export clause relaxation in 2016
domestically;
• Exports fell to $1.5 billion by 2019- when the
 Indigenisation of production in a strict threshold for the policy was raised from ₹300
time frame. crore to ₹2000 crore in 2016.

 Training Indian professionals in high-tech • CAG- Between 2007 and 2018, government signed
skills for promoting domestic R&D. 46 offset contracts worth ₹66,427 crore of

• Outcome: With increase in aerospace imports, investments.

export via offset increased by 544% in 2007. • Realised investments were merely 8% of it.

 By 2014, exports increased to $6.7 billion • Technology transfer agreements in the offsets
from $62.5 million in 2005. were not implemented.

• India among world’s top 10 aerospace

exporters.

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• Recent dilution of offset clause

 Offset clause will not be applicable to

bilateral deals and deals with a single
seller.

• Issues associated:

 Most defence deals are bilateral or a single

supplier deal.

• Why higher upfront cost is not a big issue?

 It would pay for itself in long-term by

indigenisation of production and potential
technology spill-overs for domestic industry.

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Pg: 8 – C, B, H, T; 6 – D;
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Part A—Preliminary Examination

Paper I - (200 marks)

• Indian Polity and Governance - Constitution, Political System, Panchayati Raj, Public Policy, Rights Issues, etc.
• Economic and Social Development-Sustainable Development, Poverty, Inclusion, Demographics, Social Sector Initiatives, etc.

Part B—Main Examination

PAPER-III

General Studies- II: Governance, Constitution, Polity, Social Justice and International relations.

• Government policies and interventions for development in various sectors and issues arising out of their design and
implementation.
• Development processes and the development industry—the role of NGOs, SHGs, various groups and associations, donors,
charities, institutional and other stakeholders.
• Welfare schemes for vulnerable sections of the population by the Centre and States and the performance of these schemes;
mechanisms, laws, institutions and Bodies constituted for the protection and betterment of these vulnerable sections.
• Issues relating to development and management of Social Sector/Services relating to Health, Education, Human Resources.

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Authors’ view

• To focus on innovation.

1. India provides a rich ground to be a

• Could rise to 97.4 crore internet users by
technology-led innovation station.
2025.
• India is the fastest growing country in
• JAM trinity - Jan Dhan, Aadhaar & Mobile.
terms of Internet usage.
 Provides a modern and modernizing digital
• Economic Survey 2019-20
infrastructure.
 Number of internet subscribers - 66.53
• There is a potential to add over $957
crore by June 2019.
billion to India’s GDP by 2035 with
 India is now the global leader in monthly artificial intelligence (AI).
data consumption.

 Cost of data reduced substantially,

enabling affordable internet access.
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b) Facilitation - innovation requires risk

2. Innovation in India is being structured capital in terms of resources and
around triad of collaboration, facilitation & psychological security for researchers -
responsible regulation. environment where it is safe to fail.

a) Collaboration - GoI organized events for • GoI is incentivising research and

collaborative knowledge creation. development with several schemes.

• Vaishwik Bharatiya Vaigyanik (VAIBHAV) • Innovation in Science Pursuit for Inspired

Summit. Research (INSPIRE) scholarship.

• Responsible AI for Social Empowerment  Aims at enhancing research fellowships

(RAISE) 2020 summit. for doctoral studies.

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• National Mission on Interdisciplinary Cyber- • Ramanujan Fellowship

Physical Systems (CPS). • Knowledge Involvement in Research
Advancement through Nurturing (KIRAN)
 CPS encompasses technology areas of scheme
Internet of Things, Big Data, AI, • Smart India Hackathons (SIH)
Machine Learning, Robotics, Quantum • Atal Innovation Mission (AIM)
Computing etc. • Biotechnology Ignition Grant (BIG) scheme
• PRIME (Programme for Reskilling/Upskilling of
 Coordinating and integrating nationwide IT Manpower for Employability) capacity
efforts encompassing knowledge building platform
generation, human resource development, • Scheme for Transformational and Advanced
Research in Sciences (STARS)
research, technology and product
• Scheme for Promotion of Academic and
development, innovation and
Research Collaboration (SPARC)
commercialization.
• Impactful Policy Research in Social Science
(IMPRESS)
etc.
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(c) Regulation - government is actively

3. Innovation facilitates recombination from
facilitating collaborative and lenient
multiple sources - brings diverging benefits of
regulatory practices to promote innovation
products and services, differing from initial
and incentivise risk-taking.
purpose.
 TRAI recently introduced recommendations
• Eg: Founders of Twitter wanted it to be a
for regulating cloud services in India -
platform for people to find podcasts, but now
suggests a lenient regulation, balancing
it is a microblogging and social networking
commercial freedom and principles
site.
adherence.
• Current technological world, innovation has
the potential to build a strong future that
augments ease of living for citizens.

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Pg: 12 – C, B, H, T; Pg: 1 – D; © Shankar IAS Academy

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News • Autonomous Bodies

• Department of Expenditure, Ministry of Finance  Set up when certain functions need to be
recommended divesting the status of Wildlife discharged outside the governmental- with
Institute of India (WII) as an autonomous body independence and flexibility without day-to-day
of MoEF&CC. interference of Governmental machinery.
• Review by the Department of Expenditure of 194  Mostly registered as societies under the
autonomous bodies across 18 Ministries. Societies Registration Act/ statutory institutions
 Recommendations under the provisions contained in various Acts.

 Merging 109 bodies into 26 bodies.  Funded through grants-in-aid, either fully or
partially, depending on the extent of internal
 Government to disengage from 23 autonomous
resources generated by the organisation.
bodies including WII, Indian Institute of
Forest Management, and Indian Plywood  Grants are regulated by Ministry of Finance.
Industries Research and Training Institute.

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Wildlife Institute of India (WII)

• Established in 1982; made autonomous in 1986

Objectives
• Internationally acclaimed Institution- offers • Build up scientific knowledge on wildlife
training program, academic courses and advisory resources.
in wildlife research & management. • Train personnel at various levels for conservation
and management of wildlife.
• Actively engaged in research on biodiversity
• Carry out research relevant to management
related issues. including the development of techniques
appropriate to Indian conditions.
• Mandate
• Provide information and advice on specific wildlife
 To build capacity through training, education and management problems.

research in the field of wildlife conservation. • Collaborate with international organizations on

wildlife research, management and training.
 Advice the Central and State Governments in • Develop as a regional centre of international
wildlife matters. importance on wildlife and natural resource
conservation.
• Registered as a society: Headed by a President,
the Union Environment Minister. © Shankar IAS Academy

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Implications of the recommendations

• Triggered anxiety among the scientists at WII • Lead to the destruction of the organisation -

 Divesting - government will cut 25% funding difficult for WII to qualify as a Deemed

every year. University because of few students and courses

offered.
 After that WII is expected to become a
‘Deemed University’ engaged in teaching and  University Grants Commission already rejected

research. to offer Deemed University status, twice.

• Would affect the institution’s ability to be seen

as an “unbiased opinion generator” in which
both government and public sector units
consulted for assessing the impact of
development projects on wildlife.

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Pg: 1,10 – C, B, H, T; Pg: 1,8 – D;

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• IMF’s - FDI has three components.

Foreign direct investment (FDI)  Equity capital - foreign direct investor’s

• The direct investment made by a foreign company purchase of share of an enterprise in a country

or individual in any businesses that are located other than its own.

in the other country.  Reinvested earnings - retained earnings of

• It provides the investor a controlling interest in foreign subsidiaries and affiliates of a

a foreign company. company.

• A major driver of economic growth of any  Direct investors’ share of earnings not

nation. distributed as dividends by affiliates, or

earnings not remitted to the direct investor
• It is source of non-debt finance for the economic
- retained profits are reinvested.
development of any country.
 Other direct capital - borrowing and lending of
funds, including debt securities and suppliers’
credits, between the direct investors and
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• Total FDI - Equity inflows + Re-invested

earnings + Other capital.

• FDI Equity Inflows or Equity FDI - only the

Equity capital component.

© Shankar IAS Academy Source: https://dipp.gov.in/sites/default/files/FDI_Factsheet_June20_20October2020.pdf

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Practice Question – Prelims

Q1. Consider the following statements with
reference to Wildlife Institute of India (WII).
1. It is an autonomous organisation of
Ministry of Environment, Forest and
Climate Change.
2. It was established under the provisions of
Wild Life (Protection) Act, 1972.
3. It provides advice to the Central and State
Governments in wildlife matters.
Which of the statements given above is/are
incorrect?
(a) 1 only
(b) 1 and 2 only
(c) 2 only
(d) 2 and 3 only
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Practice Question – Prelims

Q2. Consider the following statements:
1. Under the Foreigners Act 1946, the burden
of proof of citizenship lies with the State
government.
2. The power to constitute Foreigners’
Tribunal is vested solely with the Central
government.
Which of the above statements is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

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UPSC Question – Prelims 2020

Q. With reference to Foreign Direct Investment in
India, which one of the following is considered
its major characteristic?
(a) It is the investment through capital
instruments essentially in a listed
company.
(b) It is a largely non-debt creating capital
flow.
(c) It is the investment which involves debt-
servicing.
(d) It is the investment made by foreign
institutional investors in the Government
securities.

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Practice Questions – Prelims

Answers
20-10-2020
Q1. Option – c
Q2. Option – d
UPSC Question – Prelims 2020
Answer- Option b

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Practice Question – Mains

GS – II
Q. What do you understand by the term
‘offset clause’ in defense deals? Discuss its
role in achieving self-sustenance in
defense production in India.
(150 words, 10 marks)

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Practice Question – Mains

GS – II
Q. Government is putting in place a
framework of collaboration, facilitation
and regulation, in India’s innovation
horizon. Elucidate.
(250 words, 15 marks)

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