 Hello and welcome to the Hindu News Analysis by Shankar IS Academy. The news articles along with the page numbers are displayed here for your convenience. The PDF link of the handwritten notes and timestamping of the discussed news articles are given in the description box and also in the comments section. Let's begin with the first news article analysis. This news article discusses about various issues and reforms needed in agriculture sector. The syllabus relevant to the analysis of this news article is highlighted here for your reference. Now before going to discuss reforms that are needed in the agriculture sector, we will see what is the current situation of India's agriculture sector. Know that agriculture sector's share in the GDP has declined and it is currently at about 14%. However, more than 50% of the total population of the country is still dependent on the agriculture sector. According to economic survey of 2019-20, about 70% of India's rural households are still dependent primarily on agriculture for their livelihood. But we know that incomes in the agri sector have been stagnant over the last decade and an average worker earns less than 60-70% of the income as compared to their counterparts in the urban areas. Now due to pandemic labor force is moving to rural India and there is a depressed consumer demand so experts predict that incomes could further drop by about 10-20%. But the main problem is that agriculture sector realizes about 50-60% of its potential. Then the other issues in the agriculture sector are falling former income and this happens due to challenges of climate change, post harvest losses, lack of market for produce, exploitation by the middle man and so forth and so on. And one of the main reasons is reduced price realization and we know that price realization is affected by the Agriculture Produce Market Committee Act and also by the middle man exploitation. This is because middle man buy produce at lesser rates from the farmers and then they sell to the consumers with significant profit margins. But we know that APMSA Act was introduced to prevent this distressed sale by the farmers and Act imposed state governments to demarcate their geographical reason into various notified market areas headed by a market committee for each market area and it was enacted to prevent farmers from the exploitation of middle man and the traders and also to ensure better prices and timely payment for their produce through the actions in the APMC area. But you may think that how it led to reduced price realization as a result of APMC Act. So in this context know that over a period of time because of implementation of Prozents of APMC Act it created barriers to entry and exit of farmers and traders because it restricts farmers from entering into direct contract with any processor or manufacturer or bulk processor as the produce is required to be routed through these regulated markets. So over a period of time these markets have acquired the status of restrictive and monopolistic markets therefore harming the farmers rather than helping the farmers to realize remunerate to prices therefore more than 15 governments such as the state government of Maharashtra, West Bengal, Odisha, Gujarat and Andhra Pradesh have amended the Prozents of APMC Act to make it more liberal and to help the farmers. So in these states now APMC Mondays continue to play an important role in providing liberal access to market for the farmers. Now in order to enhance this access further recently government brought in reforms as part of the Atman-Irbar package and one of the significant reforms is forming, produce, trade and commerce promotion and facilitation ordinance 2020 and this reform is to enable barrier free trade in agriculture produce and we have discussed in detail about these reforms in our 4th June 2020 Indian News Analysis video and you can refer this video in order to understand better about these reforms. So we can say that in the near future due to these reforms farmers will have better price realization. Now we will discuss other issues in the agriculture sector these are lack of value addition, lack of coal chain infrastructure and inadequate management. Know that India's food processing value chain is less than 10% of produce but most of the developed economies this is about 100 to 300%. So strengthening food processing industry is important aspect in agriculture sector because a well-developed food processing sector helps in the reduction of wasteage improves value addition promotes crop diversification and also ensures better returns to the farmers besides promoting employment and increasing export earnings. Now to boost this sector government has restructured its schemes under a new central sector scheme of Pradhan Mantri Kisan Sampadayoshana and it provides subsidy based support to create robust modern infrastructure for agriculture and agro based industries along the entire value or supply chain. Now we will discuss some of the important solutions in order to make agriculture sector as a sustainable sector. For this the agriculture and food processing GDP contribution has to rise to the level of 20% then the current surplus labour in rural areas needs to be deployed in agree allied and food processing activities then agriculture and its allied sectors needs to grow at 5% per annum. Know that the present rate of growth is about 2.5%. Then using technology and supply aggregation platforms for storage and logistics support is also needed to enhance farmers income then focus on sustainable ill improvements through scientific farming practices such as integrated farming systems. In the context of this news article we have discussed different issues and reforms that are needed in the agriculture sector in order to double the farmers income by 2022. With this information let's move on to the next news article. Now let's take up this FAQ column from today's newspaper. The news column mentions the recent fallout of India-Iran relations over Chabahar rail project. In the last week we covered in detail about the Chabahar project and the consequences of India losing Iran to China. So in today's discussion let's have a quick and brief recap of all the events which led to Chabahar crisis. The syllabus relevant to the analysis of this news article is highlighted here for your reference. Now to begin with know that the original Chabahar agreement between India and Iran was signed in the year 2003 and within a year India abandoned this project as India started engaging with the United States of America. Further in the year 2016 India agreed on a trilateral track with Iran and Afghanistan. So as per the 2016 agreement India would develop Chabahar port and then we could go forward with building railway and road networks. And therefore this strategic plan was to make India a potential role player in the Eurasian scenario. So we can say that the project which was signed in the year 2016 was hailed as a major trilateral project that would give access to Afghanistan by passing Pakistan. However India delayed its developmental works in Iran because of persistent American pressure on Indian government and its companies. So as a consequence of this India was dropped by Iranian government citing delay in the proposed $400 million funding project. Now the question is why did India want to build infrastructure in other country with its taxpayers money? Here the answer is strategic benefits that India get from Chabahar project. And we know that India-Iran relations are historic and so India has sought to maintain these ties even in the face of opposition from the United States, Saudi Arabia and also from Israel. Furthermore a major trade and connectivity hub on Iranian coast not only gives India an alternative route to Afghanistan but also act as a strategic counter to Pakistan's border port. Now that border port is being developed by Chinese government in Pakistan which is geographically located near to the Chabahar port. Now in the last 5 years the Chabahar port development has moved forward but the railway link has not progressed much. The question is what was the reason for delayed development of railway line? The answer is very simple that is US policy over Iranian government. Know that US placed EV sanctions on Iran until the signing of Joint Comprehensive Plan of Action that is JCPOA. So as a result of this only after sanctions were removed India signed an agreement with Iran and Afghanistan that is in the year 2016. So in the year 2016 the Chabahar agreement was signed which includes the trilateral agreement on establishment of international transport and transit corridor between Afghanistan, Iran and India. Know that the agreement also includes the port project and also the railway line to be built and funded by Irkan for about 1.6 billion dollars. To move forward that is in the year 2018 US President Donald Trump overturned the JCPOA agreement and reimposed stringent sanctions on Iran. This meant India's energy imports from Iran which was its third largest supplier had to be dropped to zero imports. Further the bilateral trade which depended on a rupee real exchange mechanism also stopped. So in this context the United States gave Chabahar port and rail line a special waiver to India but the sanctions made it very difficult for companies dealing with the United States of America to participate in the project. Therefore the Indo-Iranian projects again faced a dead end. Also India's O&GC business has been cut out of the development of the Iranian gas build project. Therefore in addition to all these inaspirious things for India, China happened to be a new problem that is the recent Iran-China deal for about 400 billion dollars is going to further affect the Indo-Iran relations. Now the question is did India lose in Iran? For this question the answer is both yes and no because India is going to benefit from Iran railway line no matter who builds the railway line. And India's cargo can reach up to Central Asia completely bypassing Pakistan. But there is a reputational damage that India has acceded to United States of America unilateral sanctions and increasing China's presence in Iran could make Indian projects further more unviable. Here the largest or the biggest worry is that Chabahar port which is the enduring symbol of India-Iran friendship could also become collateral damage in a larger proxy war between U.S. and China. This is all about this news article let's move on to the next news article analysis. This news article says Tamil Nadu government relaxes rule for solar power pump scheme. So in this context know that India has made significant commitments in its nationally determined contributions as per United Nations Framework Convention on Climate Change. One of India's commitment is to increase the share of installed capacity of electric power from non-fossil fuel sources to the level of 40% by the year 2030. In light of this the cabinet had approved scaling up of solar power target from 20,000 megawatts of grid connected solar power projects to the level of 100,000 megawatts by the year 2022. So in order to implement this target the central government has launched an important scheme known as Pradhan Mantri Kisan Utsav Suraksha Evam Uttamahabyan that is PM Kusum scheme. And this article is about some changes made by the Tamil Nadu government in order to increase the coverage under PM Kusum scheme. So Tamil Nadu government has done away with the stipulation that farmers have to withdraw their applications for free power connections if they want to get covered under PM Kusum scheme. In this context we are going to discuss in detail about the scheme and also certain advantages of PM Kusum scheme. The syllabus relevant to the analysis of this news article is highlighted here for your reference. See PM Kusum scheme for farmers aims to install solar pumps and grid connected renewable power plants targeting 26 gigawatts of capacity and 1.7 million farmers by 2022. Know that the scheme was launched by the Ministry of New and Renewable Energy and we can say that this scheme basically aims to provide continuous energy supply and sustainable irrigation access to the farmers. It would also provide a stable continuous and long term source of income to rural land owners. And this scheme has three different components that is component A, B and C. As per component A it aims for 10,000 megawatts of decentralized ground mounted grid connected renewable power plants. So under this component renewable power plants of capacity about 500 kilowatts to 2 megawatts will be set up by individual farmers or by cooperatives or by panchayats or by former produce organizations on their barren or cultivable lands. And the power generated will be purchased by the power distributing companies. Now we will discuss about component B of this scheme which aims at an installation of 17,050,000 stand alone solar powered agriculture pumps. So under this component individual farmers will be supported to install stand alone solar pumps of capacity up to 7.5 HP, here HP means horse power. Then the last component of this scheme is components C which aims at a solarization of 10,00,000 grid connected solar powered agriculture pumps. So under this component individual farmers will be supported to solarize pumps of capacity up to 7.5 HP. Here also the excess available energy could be sold to discount companies. This is all about the different components of the scheme, therefore from all these components the scheme aims to add a solar capacity of about 26 gigawatts by 2022 and the total central financial support provided under this scheme would be around 34,422 crores. Know that for both components B and C central financial assistance of 30% of the benchmark cost or the tender cost whichever is lower will be provided and the state government will give a subsidy of 30% and the remaining 40% will be provided by the farmer. Bank finance may be made available for farmers contribution so that farmer has to initially pay only 10% of the cost and the remaining cost can be availed as a loan. Further higher central assistance of 50% will be provided for northeastern states Sikkim, Jammu and Kashmir, Himachal Pradesh, Uttarakhand, Lakshadvip and Annaman, Nicarbhar islands. So in case the state governments provide subsidy more than 30% the beneficiary share will reduce. This is all about PM Kusum scheme. Now let us see the advantages of implementing this scheme that is it will have substantial environmental impact in terms of reducing CO2 emissions that is all three components of the scheme will result in saving of about 27 million tons of CO2 emissions per annum. Further the component B of the scheme on stand alone solar pumps may result in saving of 1.2 billion litres of diesel per annum and also associated savings in terms of foreign exchange due to the reduction of import of crude oil. The scheme will also have direct or indirect employment potential. So in the context of this news article we have discussed the different components of PM Kusum scheme. Now let us move on to the next news article analysis. Now let us take up this question which was asked in 2018 UPS film's exam. The news is equalization levy on digital services is ambiguous. So in this context we are going to discuss about equalization levy. So that the finance act of 2016 has inserted a new section which deals with equalization levy. The act defines equalization levy as the tax available on consideration received or receivable for any specified service or e-commerce supply or services. The act provides for an equalization levy of 6 percent. It is charged on the amount of consideration for specified services received or receivable by a non-resident from a resident in India who carries out business or profession or from a non-resident having permanent establishment in India. The levy shall not be charged if the non-resident has a permanent establishment in India or if the amount of consideration is less than 1 lakh rupees. Further the scope of equalization levy was expanded by the finance act of 2020 and it introduced section 165A in the finance act of 2016. It says that equalization levy of 2 percent will be charged on the amount of consideration received or receivable by an e-commerce operator from e-commerce supply or services provided. And this will be applicable from 1st April 2020. Here note that an e-commerce operator is a non-resident who owns, operates or manages digital or electronic facility or platform for online sale of goods or online provision of services or both the activities. Here note that such a levy shall not be charged if the e-commerce operator has a permanent establishment in India and the e-commerce supply or service is effectively connected to it or if the levy is already charged under section 165. Further if the sales or turnover or gross receipts of e-commerce operator from the e-commerce supply or services is less than 2 crores during the previous year. Further if the non-resident e-commerce operator is not meeting the criteria then they have to pay an equalization levy at 2 percent of its total turnover to the government. And therefore any income arising from e-commerce supply or services which will be covered by the equalization levy will now be exempt from the taxation as per the amendment made to Income Tax Act of 1961. However, there are many concerns in this regard. For example, the act should clearly distinguish between digital goods or services and goods and services supplied using the digital medium as a mode of delivery otherwise instead of taxing e-commerce we might tax transactions where the medium is the internet. With this information, let's take up the given question. With reference to India's decision to levy an equalization tax of 6 percent on online advertisement services offered by non-resident entities, which of the following statements is or correct? It is introduced as part of Income Tax Act. Non-resident entities that offer advertisement services in India can claim a tax credit in their home country under the double taxation avoidance agreements. Here both the statements are incorrect because equalization levy was introduced as part of the Finance Act of 2016 but not as per the Income Tax Act of 1961. The second statement is also incorrect because global companies that offer services in India cannot claim a tax credit in their home country under the double taxation avoidance agreements. So the correct answer for this question is option D. Now let's take up this question, Kurma, a web-based application often in news aimset. We have framed this question because we have a relevant news article in today's newspaper. The news is mobile app Kurma helps save turtles in India. The news article reports that it is a mobile-based application aimset turtle conservation developed by the Indian Turtle Conservation Action Network in collaboration with the Turtle Survival Alliance and Wildlife Conservation Society. So the correct answer for this question is option B, conservation of turtles. So in the context of this question try to remember that M-stripes that is monitoring system for tigers intensive protection and ecological status aims at strengthening, patrolling and surveillance of tigers. Know that M-stripes is launched by the National Tiger Conservation Authority in partnership with the Wildlife Institute of India. Similarly know that E-Greenwatch is a governance portal for automation, streamlining and effective management of processes related to plantation and other forestry works. This portal is launched by the Ministry of Environment, Forest and Climate Change. With this information let's move on to the next news article analysis. Now let's take up this question based on National Disaster Response Fund. We have framed this question because we have a relevant news article in today's newspaper and the news is that the National Disaster Response Fund that is NDRF is now open for individual donations. If you remember that is on 28th June Hindu News Analysis, we saw that Finance Ministry gave approval to a proposal to allow individuals and institutions to contribute directly to the NDRF. Now today's news is that the central government has laid out the modalities for receipt of such donations. So in this context know that NDRF is a fund constituted as per section 46 of Disaster Management Act of 2005. And we know that generally calamities considered to be of a severe nature by government of India are covered under NDRF. It includes the natural calamities of cyclone, drought, earthquake, fire, floods, tsunamis, hail storms, landslides, avalanches, then cloudburst and pest attacks. Further in the month of March 2020, COVID-19 was declared as a notified disaster in order to provide assistance under the State Disaster Response Fund. We know that NDRF supplements the funds from SDRF of a state in order to facilitate immediate relief in case of calamities of a severe nature. Therefore NDRF is operated by the central government for the purpose of providing immediate relief to people affected by these mentioned calamities of severe nature. Now we will see how funds are allocated to NDRF that is based on section 46 of Disaster Management Act of 2005. So as per the pros and cons of this section an amount shall be provided by the central government but after due appropriation made by parliament through suitable legislation. Further any grants that is contributions made by any person or institution for the purpose of disaster management shall be credited to NDRF. So now contributions can be made by any person or institutions in NDRF through any of these modes such as online mode or through physical instruments drawn in favour of prescribed authority of government. And these funds are required for treatment of patients and other logistics such as quarantine centres, setting up of laboratories etc. Now with this information let's take up the given question. Here two statements are given with reference to NDRF. The Ministry of Finance oversees the utilization of funds released from NDRF. This statement is incorrect because Ministry of Home Affairs oversees the utilization of releases from NDRF and it also monitors complaints with guidelines of NDRF. Then the second statement says the accounts of the NDRF is audited annually by Comptroller and Auditor General of India. This statement is correct because the accounts of the NDRF is audited annually by CAG. So the correct answer for this question is option B2 only. Now let's start our practice question session. Consider the following statements regarding PM Kusum. Three statements are given, you need to choose correct statement or statements. It aims to install solar pumps and grid connected renewable power plants, targeting 26GW capacity and 1.7 million farmers by 2022. Under one of its components, individual farmers will be supported to install standalone solar pumps of capacity up to 7.5 horsepower. It is implemented by the Ministry of New and Renewable Energy. In the context of this question, know that PM Kusum scheme for farmers aims to install solar pumps and grid connected renewable power plants, targeting about 26GW capacity and 1.7 million farmers by 2022. And this scheme was launched by the Ministry of New and Renewable Energy. The PM Kusum scheme has three components. First component aims for about 10,000MW of decentralized ground mounted grid connected renewable power plants. So under this component, renewable power plants of capacity 500kW to 2MW will be set up by individual farmers or by cooperatives or by panchites or by former producer organizations. Then the next component is installation of about 17,50,000 standalone solar powered agriculture pumps. Under this component, individual farmers will be supported to install standalone solar pumps of capacity up to 7.5 horsepower. Then the last component aims at solarization of 10,000,000 grid connected solar powered agriculture pumps. Under this component, individual farmers will be supported to solarize pumps of capacity up to 7.5 horsepower. So all the given statements are correct statements. Therefore the correct answer is option D, 1, 2 and 3. Consider the following statements. The Caspian Sea is located north to Iran and west to Turkmenistan. Iran and Uzbekistan has a maritime boundary with the Caspian Sea. Iran shares land border with Kuwait. If you look at this map, you can notice that Caspian Sea shares border with the five nations and these nations are Russia, Kazakhstan, Turkmenistan, Iran and Azerbaijan whereas RLC shares border with Kazakhstan and Uzbekistan. Also notice that Uzbekistan is a landlocked country. So the first statement is correct whereas second statement is incorrect. Now if you look at the Persian Gulf, you can notice that Iran is not sharing land border with Kuwait. There are two nations that is Iraq and Saudi Arabia share border with Kuwait. So the third statement is also incorrect. So the correct answer for this question is option A, 1 only. So in this context know that Gulf Cooperation Council is a regional council consists of six nations which include Kuwait, Saudi Arabia, Bahrain, Qatar, UAE and Oman. With this information let's move on to the next question. This practice main question is relevant for general studies 3. Government is focusing on doubling farmers income using measures ranging from income support schemes to agriculture marketing reforms. In the light of above statement discuss the issues in agriculture sector and suggest reforms to increase the income of farmers. This is a 15-mars question and you have to write in 250 votes. We request our husbands to post your written answers in the comment section. Your posted answers will be evaluated and suitable feedback will be given within the reasonable time frame. With this we have come to the end of today's news analysis. If you like the video please do like, share, comment and subscribe Shankar Ayes Academy YouTube channel for more updates. Thank you.