 A very good evening to all our friends and welcome to the Hindu News Analysis of Shankar IAS Academy for the date 17th November 2020. Here is the list of the relevant news articles taken up for today's discussion from five different editions of the Hindu newspaper along with their page numbers. Also the handwritten notes in the PDF format and time stampings for all the news articles taken up for today's discussion is given in the description box and also in the comment section for the best interest of the viewers. Let us now begin our news analysis for today. First let us take up this news article which is with reference to a letter which was sent yesterday to news websites, aggregators and news agencies. The letter is on foreign direct investment limit in news and current affairs in digital media and this is the cover letter sent yesterday from the Union Ministry of Information and Broadcasting. You can see it here. So the letter asks the digital news firms and eligible entities to comply with the foreign direct investment norms. In this regard know that in the sector uploading or streaming of news and current affairs through digital media 26 percentage of foreign direct investment is allowed under the government route and this information is provided to you from the consolidated FDA policy of government of India. So in this context let us see some of the important differences between the foreign direct investment and foreign portfolio investment. The syllabus relevant for this analysis is highlighted here for your reference. Please go through it. See both foreign direct investment and foreign portfolio investment are important routes to access foreign capital. Know that foreign direct investment pertains to foreign investment in which the investor invests in an enterprise in another country and obtains a lasting interest there or to put it simply the foreign direct investment involves establishing a direct business interest in a foreign country and this could be buying or establishing a manufacturing business or building warehouses or buying buildings and FDA tends to involve creating of more substantial long-term interest or investment and well-being in the economy of a foreign country. In other words, FDAs are considered long-term investments and because of the significantly higher level of investments required the foreign direct investments are usually undertaken by multinational companies, large institutions or venture capital firms. So we can say that the FDA kind of investments may result in transfers of funds, transfers of resources or transfers of technical know-how strategies etc and for all these reasons and because of the potential to generate jobs the government of India states that foreign direct investment is a major driver of economic growth and an important source of non-debt finance for the economic development of India and know that there are several ways of making FDA one is by creating a joint venture then through merger and acquisition and by establishing a subsidiary company for example we know that Walmart acquired 77% stake in Flipkart in May 2018. So this is an FDA investment and in the last financial year that is in financial year 2020 from April 2019 to March 2020 the total foreign direct investment inflows amounted to 69.63 billion US dollars. Now let us see about the foreign portfolio investments. See foreign portfolio investment refers to investing in the financial assets of a foreign country and financial assets includes the stocks or bonds which are available on an exchange. It involves purchase of securities that can be easily bought or sold and know that the general purpose of foreign portfolio investment is to invest in the stock market of a foreign country in order to generate a quick return. So therefore comparing to FDA the foreign portfolio investment is viewed less favorable and this is because the portfolio investments can be sold off quickly and they are seen as short-term attempts to make money rather than making a long-term investment in the economy. So we can say that the role of the investor is active in foreign direct investment while it is passive in foreign portfolio investment. An FDA investor has higher degree of control than an FBI investor who has a lower degree of control over the assets. While foreign direct investment is associated with investments in the physical assets of a foreign country foreign portfolio investment is associated with investments in the financial assets of a foreign country and also know that the entry and exit for foreign direct investment is difficult compared to the entry and exit of foreign portfolio investment. Now let us come to the framework with respect to the foreign direct investments. See it is the department for promotion of industry and internal trade under the union ministry of commerce and industry which makes the policy pronouncements on FDA and this is done through the consolidated FDA policy circular press notes or press releases which are notified by the department of economic affairs of the ministry of finance. See the ministry of finance notifies such FDA circulars as amendments to the foreign exchange management non-debt instruments rules of 2019 under the foreign exchange management act of 1999 and the regulatory framework for FDA over a period of time therefore consists the foreign exchange management act and rules or regulations under the foreign exchange management act then the consolidated FDA policy circular press notes press releases clarifications etc. So with this we come to the end of analysis of this news article. In this analysis we discussed about the limit of FDA under the government route for uploading or streaming of news and current affairs through digital media and we also saw about the foreign direct investment foreign portfolio investment and also the important differences between them then we concluded the discussion by seeing the FDA legal framework in India with this we'll move on to the next news. Now see this news article the news is that rain in key wheat producing states of Punjab and Haryana is expected to boost the wheat crop sowing in the ongoing ruby season also the minimum temperature is likely to drop 2 to 4 degree Celsius in this week so that it would benefit the temperature sensitive wheat crop which thrives in cold conditions see wheat requires moderate temperature and rainfall during its growing season and bright sunshine at the time of harvest and know that wheat is the main winter crop and it is sown between late October till December while the harvesting starts from April onwards. So in this context let us have a brief discussion on major cropping seasons in India the syllabus relevant for this topic is given here for your reference please go through it. See we all know that India is agriculturally important country and India has three cropping seasons which are ruby, cariff and zed and as we have just said ruby crops are sown in winter from October to December and harvested in summer from April to June now we will see some of the important ruby crops especially we will see about wheat. See wheat is the second most important cereal crop and it is the main food crop in northern and northwestern part of our nation and as we have discussed previously this crop requires a cool growing season and a bright sunshine at the time of ripening. It also requires 50 to 75 centimeters of annual rainfall which is evenly distributed over the growing season then we have other ruby crops like barley, peas, gram and mustard etc. Now remember that though ruby crops are grown in large parts of India states from the north and northwestern parts such as Punjab, Haryana, Himachal Pradesh, Uttarakhand and Uttar Pradesh and also the union territory of Jammu and Kashmir are important for the production of wheat and other ruby crops and also the availability of precipitation during the winter months due to the western temperate cyclones helps in the success of these crops and this we have seen in today's news as well so this is all about ruby crops. Now coming to cariff season see cariff crops are grown with the onset of months soon in different parts of the country and these are harvested in the September-October months and important crops grown during this season are paddy, maize, javar, bajra, tur, mung, urad, cotton, jute, ground nut and soya bean. Now we will see about rice see rice is the staple food of a majority of people in India. Our country is the second largest producer of rice in the world after China and it requires high temperature that is above 25 degrees Celsius and high humidity with a rainfall which is above 100 centimeters and in the areas of less rainfall it grows with the help of irrigation. So some of the most important rice growing regions are Assam, West Bengal, then coastal regions of Odisha, Andhra Pradesh, Telangana, Tamil Nadu and Kerala etc. I know that after the green revolution paddy has become an important crop of Punjab and Haryana and in states like Assam, West Bengal and Odisha three crops of paddy are grown in a year and these are aus, aman and borough and a major difference here to be noted is that cariff crops are harvested in September and October while ruby crops are sawn in October and in areas like Punjab and Haryana rice is cultivated during cariff and wheat is cultivated during the ruby season. So here once paddy is harvested in October farmers have a very short time to sow wheat and because of this reason farmers in Punjab are indulging in stubble burning which appears frequently in news because it has become a major issue of pollution in the national capital region of Delhi. So we sow about ruby and cariff crops. Now there is one more short season called zait. In between ruby and cariff seasons zait is a short season during the summer months. Now some of the important crops grown in zait season include watermelon, musk melon, cucumber, vegetables and also fodder crops for animals. So in this discussion we sow about the major cropping seasons of India which are ruby, cariff and zait. So this is all about the discussion of this news article with this we will move on to the next news. Now we have this oped article which is with reference to women labour force in India. It provides some facts and critical analysis on some developments on women labour in our country. See the author considers this year that is 2020 as special in relation to women because this year marks the anniversary of two major events concerning the status of women. First it is nearly 50 years since the committee on the status of women in India submitted its report titled towards equality to the united nations and this report focused on women sensitive policy making in India in addition to providing a fresh perspective on gender equality. Secondly it is the 25th anniversary of Beijing declaration and platform for action. See this declaration serves as a benchmark for analyzing the conditions of women and state led empowerment. The declaration was adopted at the fourth world conference on women which was held in Beijing in September 1995 under the support of United Nations and the year 1995 was also the 50th anniversary of founding of the United Nations. Then the author states that India's female employment trends do not resonate with its high economic growth, low fertility and rising female schooling. While the gender gap has reduced in educational attainment between 2004 and 2018 the gender gap in workforce participation has widened and India has one of the lowest labour participation rates for women and according to the global gender gap report released by the World Economic Forum India is ranked at 149 among 153 countries in terms of economic participation and opportunity. This dimension considers female participation in labour wage equality etc and know that global gender gap index measures the extent of gender based gaps among these four key dimensions and they include economic participation and opportunity educational attainment health and survival and finally political empowerment. The index also keeps track of the progress towards closing these gaps over the time. Here we have given you India's scorecard from the global gender gap report 2020 and also according to the 2019 Oxfam report the gender wage gap is the highest in Asia where women earn 34% below men for equal qualification and equal work. Next the author talks about the disproportionate impact of the COVID-19 pandemic on women. We are saying disproportionate because 39% of women lost their jobs in April and May compared to 29% men due to pandemic. See bulk of women labourers in agriculture are landless labourers and manufacturing sector employs only around 14 percentage of female labour force. So these women are employed almost completely informally meaning that they will not be protected in terms of social security, insurance, provident fund, maternity benefits or gratuity. So a significant proportion of women are in a work that is low paying and insecurely employed and it is in this scenario the pandemic has affected their lives. And with reference to the labour courts the author's opinion is that the courts are designed to promote ease of doing business but they do not acknowledge the gender wage gap or non-payment of wages and bonuses and they also ignore the informal workers and mostly the women workers. So this is all about this article with this we'll move on to the next news. Now let us take up this editorial article here the author stresses on the role played by information and technology in different industries. So let us see what all policy reforms are required to adapt to the changing business environment of our country. The relevant syllabus is highlighted here for your reference please go through it. See we all know that information and communication technologies have crept into our everyday life. Now we can say that information is the new currency which is powering the economies. The expansion of computing power has driven the pace of information gathering and analysis. Now the author tells that the evolution of technologies have blurred the traditional boundaries between goods and services. See information-based technologies have been widely adapted across a broad range of industries and products that traditionally have not been perceived as electronic or software based. For example automobile was a traditional good but a modern vehicle has 40 percentage of its components from electronic based products. Similarly information and electronics are becoming all pervasive in other industries as well and this has manifested in increasing digitization and electronefication of the industries around us. And there is also another reason for this information revolution that is customers across the globe prefers such value-added products which utilizes evolving technologies as it provides a greater user experience to them. For example consider yourself buying a car. Now our thought is not just limited to the color aesthetics or fuel type. We will also be thinking about how technologically advanced the car is like using of advanced sensors technologies like artificial intelligence etc. But such emerging technologies will deliver its potential if we have a favorable system. We know that our political and bureaucratic system is built on different ministries divided into different departments. And each department like heavy industries electronics agriculture etc. have specialized in their respective fields. But over the years they have tended to operate in silos or compartments. We know that digitization and data analytics are becoming inevitable components of almost all products and services. And this blurs the traditional boundaries between different stakeholders. So what we need is a nourishing environment where different stakeholders are integrated in policy formulation and implementation. For example a major policy decision regarding the automobile industry should not be limited to just heavy industries and the surface transport ministries. It should involve electronics and information technology ministry as well. Another example is regarding the use of drones. We know that drones will rule the civilian and military sector in the coming days. Its applications include from weather forecasting in agriculture to enemy reconnaissance in military sector. And this can be effectively utilized only if there is an inter departmental collaboration. So what is the way forward? See the solution is getting rid of the departmentalization of policies. There should be a realization that in today's information and technology driven world economic development can be achieved only if various ministries are working together. So our policy makers should take a holistic view across different departments to ensure cooperation and synergy in framing policies as well as in its successful deployment. Also we need to build an ecosystem where clusters of companies working in complementary areas work synchronized or together. This would encourage multi and cross-disciplinary learning and spur innovation and economic development. Just imagine an industrial area where you have a multitude of industries related to educational and skilling institutions, research laboratories and testing centers etc. Such an incubating environment is bound to attract investment and improve ease of doing business in India. There is also a larger issue of balancing manufacturing and services. The author feels that present day policies by and large incentivizes only manufacturing. Further policy should also focus on the intangible sectors like the software, research and development and other services. So this is very important to encourage innovation and technological development. Apart from all these what we need is a political will and center state cooperation to ensure effective implementation on the ground. So this is all about the discussion of this news article with this we'll move on to the next news. Now this article says that the chief minister of Tamil Nadu has demanded more centers for conducting the Institute of National Importance Combined Entrance Test or in short INICET. Know that INICET has been introduced as the new postgraduate medical entrance exam. It replaces the postgraduate entrance exams for AIMS, JUPMA, NIMHANS etc. and it will be conducted by AIMS Delhi. Now let us see what do we mean by institution of national importance. Know that it is a type of university level institution in India. So some of the institutions established by an act of parliament are declared as institution of national importance. For example consider the national institute of design which is India's premier and first design institute. It has been declared institution of national importance by an act of parliament by virtue of the national institute of design act and another example is the Indian Institute of Information Technology Public Private Partnership Act of 2017. It declares certain Indian institutes of information technology established under the public private partnership mode as institutions of national importance and at present there are more than 90 institutions of national importance in India. And this includes several Indian institutes of technology and national institutes of technology. So it is very important to know that the institution of national importance comes under the union list of seventh schedule of the Indian constitution. See the union list entry 64 is about institutions for scientific or technical education financed by the government of India wholly or in part and they should also be declared by the parliament by law to be institutions of national importance. Here another important thing to be noted is that aspirants should not confuse between the institution of national importance and institutions of eminence. See institutions of eminence are established through the scheme of institutions of eminence by the ministry of education which was formerly the ministry of human resource development. But institutions of national importance are established through the act of parliament. See institutions of eminence scheme was launched in order to implement the commitment of the government to empower the higher educational institutions and to help them become world-class teaching and research institutions. And under this scheme 10 public and 10 private institutions would be identified which will emerge as world-class teaching and research institutions. So the aim of this scheme is to bring higher educational institutions which are selected as institutions of eminence to the top 500 of world ranking. And this has to happen in the next 10 years and after that the aim will be to bring these institutions to top 100 of the world ranking. And know that institutions of eminence will be eligible for a government grant of 1000 crore rupees. And once an institution gets IOE tag they will not be subject to the university grants commission inspections. And they are free to set their own courses and curriculum then fee structure, merit-based admission systems etc. And they will also have complete academic administrative and financial autonomy. So in this discussion we saw about the institution of national importance and institution of eminence and the difference between them. This is all about the discussion of this news article. With this we will move on to the practice questions discussion section based on today's news analysis. Now see this first question with reference to higher education in India consider the following statements. The first statement reads the Ministry of Education is empowered to declare a higher educational institution as an institution of eminence based on the recommendation of university grants commission. Yes this statement is correct. The second statement reads a higher educational institution is declared as an institution of national importance by an act of parliament. Yes this statement is also correct. So in this question we have to identify the correct statement or statements. Here both the statements are correct. So the correct answer is option C both 1 and 2. Now see this second question. It is a three statements based question where we have to identify the correct statement or statements. Consider the following statements. Statement 1 reads wheat in India is primarily grown in north and northwestern parts of the country during rubby season. Yes this statement is correct. So you can eliminate option B. Now the second statement reads wheat requires moderate temperature and rainfall during the growing season and bright sunshine at the time of harvest. Yes this statement is also correct. So you can eliminate option C also. Now the third statement reads the precipitation due to the western temperate cyclones helps in the success of wheat in Punjab and Haryana. Yes this statement is also correct. So the correct answer is option D 1 2 and 3. Now the third question is related to foreign direct investment. Consider the following statements. As per the FDI policy 49 percentage of FDI is allowed under the government entry route for the sector of uploading or streaming of news and current affairs through digital media. See this statement is incorrect. It is not 49 percentage. It is 26 percentage of FDI which is allowed under the government entry route for the sector of uploading or streaming of news and current affairs through digital media. Now the second statement reads in the sector of publication of Indian editions of foreign magazines dealing with news and current affairs 26 percentage of FDI is allowed under the government entry route. Yes this statement is correct. So we know that statement 1 is incorrect and statement 2 is correct and we have to identify the correct statement or statements. So the correct answer is option B 2 only. Now you have these two main questions. Please write your answers and post it in the comment section. Our feedback will be given in a reasonable time frame. So friends with this we have come to the end of analysis of all the news articles taken up for today's discussion and also the discussion of practice questions. 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