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Monthly DNA
03 Feb, 2020
25 Min Read
Syllabus subtopic: Government Policies and Interventions for Development in various sectors and Issues arising out of their Design and Implementation.
Prelims and Mains focus: about the national seed fund and its benefits; about ESOP
News: The Department for Promotion of Industry and Internal Trade (DPIIT) is working on guidelines for a National Seed Fund that was announced in the Budget for 2020-21 to help start-ups and budding entrepreneurs.
Why the reform?
Significance of the move
Employee Stock Option Plan (ESOP)
What did the budget propose?
Source: Indian Express
Syllabus subtopic: Government Policies and Interventions for Development in various sectors and Issues arising out of their Design and Implementation.
Prelims and Mains focus: about the move: Challenges and benefits; about Personal Data Protection (PDP) Bill 2019
News: The Union budget proposal to enable private firms to build data centre parks could help India become a major global data centre, but only with a supportive policy and infrastructure framework.
Background
The budget proposal follows the requirement for data localization for most companies under the Personal Data Protection (PDP) Bill 2019, which is expected to be made into law soon. However, data localization won’t be the only driving principle for the data centre policy, as such parks can generate business worth billions of dollars each year.
Current scenario
Currently there is no large-scale foreign investment in data centres in the country. There is no policy or framework right now on how these global data centres hubs can be created in India. If the government has a clear cut policy around it, India could essentially become a data centre hub for global enterprises.
Data Centre Market: Key figures
Challenges in setting up data centres in India
Benefits of the new policy
Source: Livemint
Syllabus subtopic: Effects of Liberalization on the Economy, Changes in Industrial Policy and their Effects on Industrial Growth.
Prelims and Mains focus: on the move to abolish duties and its significance; on dumping
News: The government’s decision to abolish anti-dumping duties on Purified Terephthalic Acid (PTA) will bring down manufacturing cost and potentially boost exports.
Background
About the move
Reason for abolishing anti-dumping duty
What is PTA used for?
Significance of the move
What is dumping?
What Is an Anti-Dumping Duty?
An anti-dumping duty is a protectionist tariff that a domestic government imposes on foreign imports that it believes are priced below fair market value. For protection, many countries impose stiff duties on products they believe are being dumped in their national market, undercutting local businesses and markets.
Source: Indian Express
Syllabus subtopic: Issues related to Direct and Indirect Farm Subsidies and Minimum Support Prices
Prelims and Mains focus: about the open-ended procurement policy and the need to review it; about CACP and its mandate
News: As the debate surrounding the review of open-ended procurement policy has started gaining momentum, following a recommendation by the Commission for Agricultural Costs and Price (CACP) to the Centre government, several farmers and farmers’ bodies in Punjab and Haryana have hinted that any move to stop or limit it would be opposed and resisted.
Background
According to CACP, the policy of open-ended procurement has led to mounting food stocks and adversely affected crop diversification. Consequently, it asked for a review of the open-ended policy.
What is the open-ended procurement policy?
About Commission for Agricultural Costs and Price (CACP)
Composition
Currently, the Commission comprises a Chairman, Member Secretary, one Member (Official) and two Members (Non-Official). The non-official members are representatives of the farming community and usually have an active association with the farming community.
Mandate
How is MSP decided by the government?
Source: The Hindu
Syllabus subtopic: Conservation, Environmental Pollution and Degradation, Environmental Impact Assessment.
Prelims and Mains focus: about the CRZ regime and its significance
News: As many as 2,130 backwater islands of Kerala, including Maradu, have been brought under the Coastal Regulation Zone (CRZ) regime thereby imposing curbs on development activities.
Background
The provisions of the CRZ 2011 notification made special provisions for Kerala considering the unique coastal systems of backwaters and backwaters islands along with the space limitation in the coastal stretches of the State of Kerala.
CRZ 2011 notification
Changes made by CRZ 2019 notification
What is the CRZ area?
Islands on the CRZ list
Source: The Hindu
Syllabus subtopic:
Prelims and Mains focus: About steps taken to boost private investment; associated terms and their meaning
News: Finance minister took several measures to woo foreign portfolio investors (FPIs) after the misstep last year of imposing a surcharge on investors who were registered as a trust.
What are the steps to be taken?
Significance of the move
About Withholding tax
About Sovereign wealth fund
About Dividend Distribution Tax (DDT)
What Is Foreign Portfolio Investment (FPI)?
Pros |
Cons |
Feasible for retail investors |
No direct control/management of investments |
Quicker return on investment |
Volatile |
Highly liquid |
Cause of economic disruption (if withdrawn) |
Source: Livemint
Syllabus subtopic: Food Processing and Related Industries in India- Scope’ and Significance, Location, Upstream and Downstream Requirements, Supply Chain Management.
Prelims and Mains focus: about the draft national logistics policy: benefits and challenges in implementation
News: In her Union budget speech, the finance minister said the government will release the policy soon.
Background
Benefits of the policy
Challenges in implementation
The main challenge is while some of the subjects covered under the policy come under the Centre, the rest are controlled by states. The development of multi-modal logistics parks, or rules to do with motor vehicle movement, come under states. So, unless there is alignment between the Centre and the states, this policy will be hard to implement.
Source: Livemint
Syllabus subtopic:
Prelims and Mains focus: about the move to boost private InviTs and its benefits
News: Union budget proposals are set to boost investments in the infrastructure space with tax exemptions for private infrastructure investment trusts (InvITs), which have emerged as an investment route of choice for large institutional investors.
Background
What did the budget propose?
Benefits to the move
About Infrastructure Investment Trusts (InvITs)
Source: Livemint
Economic Survey on India's economic growth Syllabus subtopic: Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment. Prelims and Mains focus: on the suggestions and observations made in the survey related to India’s ec
Economic Survey on entrepreneurship Syllabus subtopic: Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment. Prelims and Mains focus: on the remarks made in the survey regarding entrepreneurship News: The Economic
Economic Survey on Privatisation Syllabus subtopic: Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment. Prelims and Mains focus: about the suggestions/observations made in the survey regarding the disinvestment of CPSEs &n
Global Health Emergency Syllabus subtopic: Issues Relating to Development and Management of Social Sector/Services relating to Health, Education, Human Resources. Prelims and Mains focus: on the coronavirus outbreak and its effect on the world; reasons for WHO declaring it a global health emer
Syllabus subtopic: Ministries and Departments of the Government; Pressure Groups and Formal/Informal Associations and their Role in the Polity. Prelims and Mains focus: about the restructuring in the ministry and its advantages News: The Ministry of External Affairs (MEA) h
Syllabus subtopic: Issues Relating to Development and Management of Social Sector/Services relating to Health, Education, Human Resources. Prelims and Mains focus: about the coronavirus and its spread across the world; measures taken by the Indian government in this regard
Airport Collaborative Decision Making (A-CDM) System Syllabus subtopic: Infrastructure: Energy, Ports, Roads, Airports, Railways etc Prelims and Mains focus: about A-CDM and its benefits News: Guwahati has become the eighth Indian airport to implement an Airport Collaborative Decision Makin
Syllabus subtopic: Statutory, Regulatory and various Quasi-judicial Bodies. Prelims and Mains focus: about the issue and e-flow norms; about CWC, its functions News: Over a year after the government made it mandatory for hydro power projects on the upper reaches of the rive
Syllabus subtopic: Conservation, Environmental Pollution and Degradation, Environmental Impact Assessment. Prelims and Mains focus: about the issue and the directions given by NGT; about various categories of industries; about NGT; CPCB News: The National Green Tribunal (NG
Syllabus subtopic: Statutory, Regulatory and various Quasi-judicial Bodies. Prelims and Mains focus: about the issue of using chemicals in fruits and vegetables; about FSSAI News: The Delhi High Court has observed that use of pesticides and chemicals to ripen fruits amounts
Syllabus subtopic: Government Policies and Interventions for Development in various sectors and Issues arising out of their Design and Implementation Prelims and Mains focus: about the new scheme to be launched and how is it going to be a game changer for discoms and consumers; about UD
The UK finally leaves European Union Syllabus subtopic: Effect of Policies and Politics of Developed and Developing Countries on India’s interests, Indian Diaspora. Prelims and Mains focus: all about the Brexit issue; the Irish backstop agreement; about European Union News:
Syllabus subtopic: Government Policies and Interventions for Development in various sectors and Issues arising out of their Design and Implementation. Prelims and Mains focus: about the new reservation policy in J&K; about Paharis News: The Jammu and Kashmir Administrat
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