 Welcome to the Hindu news analysis by Shankar Ayes academy. Displayed are the list of news articles selected for today's analysis and their page numbers in Chennai, Delhi, Bengaluru and Thiruvananthapuram editions of the newspaper. The link for the handwritten notes and the time stamping of the news articles are provided in the description box and for the benefit of mobile phone viewers the time stamping is also provided in the comment section. Now let us move on to the first news article. This article is a lead editorial article about the wishes of the author how the 5 trillion dollar economy should look like. Now this article will be relevant in prelim syllabus under current events of national importance and in economic and social development. In main syllabus this article can be linked to issues relating to health and education in GS paper 2 and it is also relevant under GS paper 3 in Indian economy. Now we know that recently at the meeting of governing council of Nithya Yog the prime minister has announced a target of achieving 5 trillion dollar economy for India by the year 2024. This we have seen on 16 June news analysis along with other matters that were discussed in the meeting of the governing council of Nithya Yog. The author says that such a dream or such a big plan is necessary for achieving transformation because transformation does not come from modest or ordinary plans. This target of achieving 5 trillion US dollar economy is called by the author as a big move forward. For this the author has used the words the quantum leap. See economic policies has to be made based on ground reality. Now this means we require official statistics to reflect the ground reality because it is based on these official statistics the economic policies are made. Therefore the author states that the prime minister has to put in place India's official statistics that is those departments that perform these official statistics on a firmer footing. Now in the first paragraph the author talks about ending a particular task that just having official statistics on firmer footing will not actually end the task. By the term task the author means something in this editorial that we will be discussing in this article. Now this task can be understood by asking one question that is what would we like to see in the proposed 5 trillion dollar economy that is what are the things we want to be there in a 5 trillion dollar economy. The author says that achieving 5 trillion dollar economy is not an easy job and it requires design funding and governance. Next the author talks about the importance of investment in achieving this dream. According to this author the Make in India program is a failure. This Make in India program which was technically applicable to every sector but clearly focused on manufacturing sector and this article says that the program the Make in India program played out as a dam squib. Now the term dam squib means in our context that the Make in India program was less impressive than expected and one of the reasons for the failure of Make in India program was the absence of required level of investment. Then the author talks about the proposals of UPA alliance government and the proposal of national democratic alliance governments to increase the share of manufacturing sector in the economy from 16% to 25%. Now in order to increase the share of manufacturing there has to be commensurable scaling up of investment. Since investment did not come therefore the proposals of increasing the share of manufacturing in Indian economy did not happen. If you take overall Indian economy the share of agricultural sector will be around 17%. The share of industrial sector will be around 29% and the share of services sector will be around 53% every year. Now this has been the present trend. You should know that the terms industrial sector and manufacturing sector cannot be used interchangeably. Now this is because manufacturing sector is a subset of industrial sector. Industrial sector contributes something around 29% to the overall GDP but manufacturing sector contributes somewhere around 17% to the Indian economy. So from here we can know that the major contributor or the major shareholder of Indian economy is the services sector. The author says in order to increase the contribution of manufacturing sector to the economy from around 17% or 16% to 25% significant investments are required. So in the absence of such investment the share cannot be increased. And then the author says that for making India program the prime minister has expected much investment from private sector or the corporate sector. He says even if there is no contribution from private sector there must be investment and that is the standoff this author in such cases the government should step in and carry out the required investments. Then the author talks about two policies made by the government in two different times to arrive at a particular inference. The first attempt to make in India was made in the time period of 1947 to 1949. Now this attempt was made by declaring increasing internal production as the economic priority. This announcement was made by the first finance minister of independent India, Mr. Shanmugam Chetty. Internal production here means production in various sectors within our country. It is also sometimes called as domestic production. Now the target of internal production was achieved quite soon and it also increased the share of manufacturing in the economy. We are talking about 1940s, 1950s. The share of manufacturing in the economy was improved despite the presence of slow rate of growth during those times. Now in order to express slow rate of growth the author has used the term Hindu rate of growth. Now some economists say that India had Hindu rate of growth in those times to signal the slow rate of growth. The term Hindu was used because they felt that Indian policy makers were content with the slow rate of growth because of the philosophy of contentedness in Hinduism. The reason why the share of manufacturing was increased at that time period was because of a rise or surge in investment which was led by the government at that time. But the author notes that even though there was increase in share of manufacturing it did not emerge as a part of the moral victory of oppressed people. That is, yes there was increase in share in manufacturing sector and yes there was at least slow rate of growth. But this does not result in the enrichment of living standards of oppressed people. But the moment finance minister made an announcement they found resources from here and there and ensured that the share of manufacturing was increased and they ensured that the prioritized increasing internal production was given much importance. Now the difference with respect to make in India of 2014 to 19 with respect to increasing internal production then was that at that time the investment was led by the government in 1940s whereas it was not done in the case of make in India. So to take Indian economy to the next level three important ingredients are necessary. They are design, funding or resources and governance. By next level the author means Indian economy of 5 trillion US dollar. This means that India can achieve the 5 trillion US dollar economy using these three ingredients. But in such an economy will there be empowerment or happiness of all Indians? Will there be equality of opportunity in such an economy? Will there be conservation of nature? We have a history before us where we see both the programs did not had the intention to enrich the standard of living of all Indians. Both the programs mean the program in 1940s and the make in India program in recent times. The author says that both the programs of internal production in 1940s and the make in India program announced during the time period 2014 to 19 did not enrich the lives of all Indians. See while in 1947 India was beginning its term as a newly independent country and the main priority at that time was to somehow get the economy moving in the first place. They may be excused so they were not able to focus on enrichment of all Indians because their focus was only to get the economy moving. But this is not the case now. Now the economy should benefit all people. Therefore the author says that the economy has to be evaluated in terms of how much it contributes to the ease of living of all people. This is how an economy has to be evaluated. Then the author discusses about three important characteristics of a valuable economy. These are in the wish list of the author. The author means that even if India achieves fight relief economy to be called as a valuable economy it should have three characteristics. The first characteristic of a valuable economy is that there should be access to quality health and quality education for all people. Now the access to quality health and quality education results into happiness among the people. But if you look at the current status India has been ranked at 140 out of 156 countries in the World Happiness Report 2019. Now this report was prepared by United Nations Sustainable Development Solutions Network along with few other partners. If you want to make people happy you have to empower them. You have to provide them quality education and quality health. This should be accessible for all people. The second attribute or the second characteristic of a valuable economy is equality of opportunity. Here the author talks about two things. One is with respect to income inequality and the other is with respect to gender inequality. He says that the income inequality has been rising in India and also India is now more unequal than our neighbor China. The author says that part of income inequality is because of unequal distribution of income. With respect to gender inequality the author says that the sex ratio has shown a secular worsening since 1947. Note that the word secular has a totally different meaning in economics. It is not the same as we study in Indian polity. In economics the term secular means a long term trend. In our context for a longer period since 1947 the sex ratio has been worsening. Inequality in India can only be ended by equalizing capabilities across the individuals. This is the author's opinion. To achieve this outcome concerted public action through education is necessary. The third important attribute or characteristic of a useful and valuable economy is that there should not be damage to the environment in the pursuit of growth. The present state is not worth stating. This is because we already have 66 percent of world's most polluted cities in our country. In such a situation we see drop in natural capital or natural resources. This drop in natural capital affects human capital that is depletion of environment and less importance to environment protection shortens the lives of people and lowers the productivity. Here the most affected population are the poor. Therefore the task is to achieve all these characteristics in the economy while achieving the five trillion US dollar economy. This is the task before the prime minister. Therefore our growth process requires a realignment to achieve these characteristics. By this realignment we may have a slower rate of growth but it will channelize the growth towards the economic upliftment of poorer groups. We may not have measurable numbers of growth but we may have intangible wealth that is wealth that cannot be measured by numbers for example happiness. This will make an economy valuable. With this the author concludes the article. Now let us move on to the next news article. The displayed practice question will be discussed in the last session. This article is about one nation one election issue or one nation one poll issue. Now this article will be relevant in your prelims syllabus under current events of national importance and in Indian polity and governance particularly under political system. It is also relevant in main syllabus in GS paper two in parliament and state legislature important aspects of governance. Yesterday we had a very detailed discussion on one nation one poll issue. One nation one poll is nothing but one nation one election or simultaneous elections. Simultaneous elections means elections at the same time to all the three tiers of constitutional institutions or in other words simultaneous elections means election to all the three tiers of constitutional institutions taking place in a synchronized manner. Now the three-tier structure see one house of the people also called as Lokshaba also called as lower house and secondly state legislative assembly which is also called as Vidhan Shaba and thirdly the local government. We also saw that the prime minister had called for a meeting with leaders of other political parties to debate on the issue of one nation one election. Yesterday this meeting has happened and only 21 political parties attended this meeting convened by the prime minister but 11 political parties including the Indian National Congress skipped the meeting that was convened by the head of the government. Now at the end of this meeting the defense minister announced that a committee will be formed by the government to prepare a roadmap for one nation one election. See roadmap means a plan or strategy that is intended to achieve one goal so this means that the committee will come up with the plan or strategy to achieve the ultimate goal of one nation one election. Now defense minister noted that majority of the political parties have supported this idea and somehow raised questions about the feasibility of this idea but those who raised the questions they also did not oppose the move. Now this means they also supported the move. So now let's see the ideas given by various political parties one by one even though these views are with respect to political parties. Now you can use these views while writing your mains answer. See as we discussed yesterday it may take years to achieve the ultimate goal of one nation one poll. So in the meantime a question may be asked in the examination like what is your opinion on the issue of one nation one poll. What is its feasibility or give your suggestion to achieve this goal etc. Then in the light of these opinions or views you can answer these questions. Now let us see these opinions of political parties one by one. First the leader of Mumbai Congress has supported this debate. He said that being in continuous election mode is actually a roadblock to good governance and it distracts politicians from addressing real issues. Here roadblock means a hindrance or an obstruction or a huddle or good governance means the processes that are undertaken to meet the needs of the society by making the best use of resources. So the leader of Mumbai Congress has said continuous election mode will be an obstruction to good governance because politicians will be distracted due to continuous elections as they will be more focusing or concentrating on winning these elections. See after locus of elections they will focus on winning state legislative assembly elections then they will focus on local body elections. So they will focus on these elections not on the people. So they may not address the issues which the people face and they will not take any developmental actions that are needed. Next the chief minister of Andhra Pradesh has also agreed to this idea of one nation one poll but he is opposing the idea of fixed tenure of state legislature. Now if you see we discussed about this condition where we asked the question about what will happen when the state assembly gets dissolved. Will there be an election for entire country again just for the dissolving of state assembly of one particular state or will there be president's rule in that particular state till Lok Sabha elections are conducted. Now for this question the chief minister of Andhra Pradesh has provided an alternative or an answer. He mentions that when a state government falls it is because of a crisis in the state. So the central government cannot prolong the state assembly just to conduct simultaneous polls with the general elections. So he says if the state government is dissolved after two years of getting elected then there shall be re-election. Then when after the re-election a new government is formed the new government shall hold power only for the remaining three-year period. Now this will help the central government and election commission to hold simultaneous elections even when the state assembly is dissolved. Now we could also see the chief minister of Odisha state government also supported this idea. Now some parties opposed the idea of one nation one poll. Now they say that the proposal violates basic feature of the constitution particularly federalism. Now this may be because every assembly election reflects and raises the local issues of the state and the local issues might appear small at the national level. So these issues has to be addressed by local leadership only or the leadership at the state level only. But if you see the Lok Sabha elections these are held on national issues at the national level. So when simultaneous elections are held local issues receive less importance that is why they say it violates federalism. The another reason stated by the political parties who oppose this idea is there will be a gross misuse of article 356 of Indian constitution. So they say until this article 356 remains in the constitution simultaneous elections should not be conducted. Now what is article 356? Article 356 is one of the articles among the emergency provisions of Indian constitution. It deals with the imposition of president's rule in the states in a certain situation and that certain situation is the failure of constitutional machinery in the states. If you currently look in India we have president's rule in the state of Jammu Kashmir. Now last year after the dissolving state legislative assembly in June 2018 there they had a governance rule according to the constitution of Jammu and Kashmir. Section 92 of constitution of Jammu and Kashmir then in November-December it came under president's rule right now it is under president's rule. Now coming back to our discussion so the president's rule can be imposed when there is failure of constitutional machinery in the states. Now this means if a state government is unable to function according to constitution then central government can take direct control of state machinery and know that this provision can be exercised only when the president is satisfied that a situation has arisen in the state government that it cannot be carried out in accordance to constitution. Now this article interferes with the power of the states because when president's rule is imposed on states the elected government in the state is suspended and the administration is directly carried on by the governor of the state. We could see the misuse of article 356 in the past time particularly between 1952-1994 this power was exercised more than 90 occasions. Now this is the reason why the political parties are opposing simultaneous elections because if they say due to some reasons the Lokshaba is dissolved before completion of its tenure then due to the concept of simultaneous elections the central government will exercise its powers and use article 356 to dissolve the state legislative assemblies also so as to conduct the election for Lokshaba and state legislative assemblies and local bodies at the same time therefore the political parties are against the idea of one nation one election and in turn it also acts against federalism because this provision gives centralization of power and authority in a situation when simultaneous elections can become the norm of the day. Finally political parties also noted that the implementation of such a huge goal of one nation one election should not be hurriedly or hastily carried out it should be given a long and careful consideration or discussion before its implementation all over the country. Now some also suggested there is a need for a white paper here in this context the meaning of white paper is nothing but a government report is required with information or proportional on the issue of one nation one election. With this we come to the end of this article now let us move on to the analysis of next news article. This editorial article discusses about the ongoing tensions between Iran and United States of America now this article will be relevant in prelims syllabus under current events of international importance and also under world geography. Now certain information you could use on your mains questions with respect to Iran nuclear deal or Iran United States with respect to Iran and United States. So this analysis will be relevant in mains preparation in GS paper 2 under bilateral regional global groupings and also under effects of policies and politics of developed and developing countries on Indian interest. Before seeing this editorial first let us see what is meant by the game of chicken. Now it's a game theory which is a branch of mathematics it is concerned with the analysis of strategies for dealing with competitive situations. Here a participant's choice of action depends critically or completely on the actions of other participants see the game theory has been applied to context in war business bilateral relations and in biology related topics. Now this game of chicken which is a game theory typically describes two players who are heading toward each other now take the example of two cars in this picture as you can see both the cars are heading towards each other if one driver for example take driver two decides to swerve that is decides to suddenly change the direction or if he decides to slow down then driver two losses and he becomes the chicken and driver one wins if both the drivers decide to head towards each other then they will crash for sure so it is damage for both of them so here consider the cars as unite one car as united states and the other as iran the author tells that this game of chicken has the best theoretical description to understand the iran us tensions that are going on now here author has mentioned the timeline of us iran tensions see in 2015 united states iran china russia european union three european nations that is united kingdom france and germany signed the iran nuclear deal this iran nuclear deal is also called us joint comprehensive plan of action. USA was the first country to pull out from iran nuclear deal this happened in may 2018 USA is the only country to pull out from iran nuclear deal so far now this was followed by united states imposing economic sanctions on iran and then us also termed a branch of iran's government iran's armed forces as a terrorist group and then us sent more troops to west asia to alter the behavior of iran with respect to united states the us administration calls this strategy as the maximum pressure approach and now we can also see iran also threatening to breach the nuclear deal and it is also reportedly acting against us military sanctions as well so the author tells that this strategy of united states appears to be failing and as a result of this the author tells that there are war clouds that have gathered over the gulf here the gulf means persian gulf now see this map persian gulf is a very strategic location and many countries surround this gulf and are dependent on this gulf for oil export and the country surrounding this persian gulf are you know south arabia quake iraq iran omen united arab Emirates Qatar and Bahrain and there is straight of homus which is also located here this straight separates iran in the north and omen and united arab Emirates in the south and this tip is controlled by omen and it is named as musandam peninsula of omen so whenever any article discusses about gulf you know keep this points in mind and now the author is telling that us iran ties are at its low as it was during the final years of George w bush's presidency that period was around 2008 2009 next the author discusses the reasons for pulling out of united states from the iran nuclear deal the present us administration under mr donald trump has said that the president was unhappy with the iran nuclear deal that was arrived between iran and world powers in 2015 during the regime of previous president mr barak obama and he says that iran nuclear deal has left some issues unaddressed these issues are iran's ballistic missile program and also iran's disruptive actions or troublesome actions in the west asian region this is what from the side of united states and they say this is the reason why us has left the joint comprehensive plan of action the author tells that after united states has left this deal this deal has almost practically become a dead agreement so now united states want to renegotiate the deal but iran is not willing to do so in the terms and conditions of united states so us has thought to put the maximum pressure by means of economic sanctions so that iran will come back for talks with united states but iran is not ready for talks with us instead it has accused that the other signatories of the deal has done nothing concrete or done nothing solid to save iran from the sanctions of us there are a few companies that had shown interest in investing in iran even some chinese companies now they are pulling out from iran because of us sanctions and us also threatened the top buyers of iran's oil even including india so this has also resulted in a massive reduction of iran's export of oil according to the author such sanctions and actions of usa has not helped usa to bring iran for negotiating table for talks he says that it is not that iran has never cooperated with usa for talks here author mentioned some instances when iran actually helped or assisted usa whenever required see after september 11 2001 attacks on us twin towers usa waged war in afghanistan and iran assisted the united states war in afghanistan then iran also played a critical role in the formation of first post-thaliban afghan government after the afghan war but once this was over the us under the leadership of mr. josh w bush turned hostile or became an enemy almost against iran the president called iran and north koria as the axis of evil then mr. obama succeeded mr bush as the next u.s president with the help of european powers russia china president obama got the iranians to the negotiation table and they were able to come up with joint comprehensive plan of action or the iran nuclear deal in the year 2015 now after the deal was signed the us and iran cooperated in iraq in the fight against islamic state but once the direct war against islamic state in iraq was over mr trump pulled the united states out of this deal next the author discusses about possible reactions by iran to the actions of united states our first choice for iran is to return to talks on the terms of us this is so that iran would negotiate another nuclear deal and also get relief from the economic sanctions but the author tells that if iran agrees to the conditions of usa it will be humiliating for the nationalist ayatollahs now ayatollahs are the muslim clerics of iran they are part of iran's politics since 1979 and they built their political power on the theme of anti americanism the second choice for iran is to wait till the completion of presidency of mr trump and to keep hope that his successor would take the us back to the nuclear deal for this you need to understand or know slightly about us quality there are two major parties in united states one is the republicans and the other is the democrats if you see mr trump or mr judge w bush they are all republicans mr obama under whose rule this iran nuclear deal was signed is a democrat now if you see even now there are democratic presidential candidates who back this iran nuclear deal but there are there are also statements like the economic sanctions are affecting iran a lot and iran cannot wait till the next u.s presidential election that may have that will happen in november 2020 and the new president will come to power by the year 2020 end or 2021 beginning and there is also no surety that whether mr trump will be re-elected or not if he is re-elected then things will be almost remain the same if some other democrat comes to power then us might likely to join the iran nuclear deal again a third option for iran is to force the european union to resist or oppose or defy the economic sanctions of united states and to save the iran nuclear deal now iran has been waiting so that other members of this deal will come up with some solid mechanism to save this deal but this did not happen instead european union has set up a different channel with iran called us instax now which is called as instrument in support of trade exchanges if you see this instax channel is used mainly for transacting essential goods and not high value exports such as oil and gas with iran so the author says nothing has almost worked in favor of iran and iran has now moved to the last option that is showing maximum resistance to the maximum pressure exerted by the united states then the author mentions about iran's actions of resistance he tells that iran's response has been gradual in may 2019 iran gave a 60 day deadline to other signatories of iran nuclear deal to fix the problems in this deal now here the problem means the withdrawal of us and the other us sanctions with respect to iran iran also promised to keep the unspent enriched uranium and heavy water which it had been exporting earlier before the deal was signed now iran has told that the 60 day deadline is about to get over in some two weeks and it would start to enrich the uranium and also if iran starts producing high enriched uranium or in other words if iran keeps the stockpile that are beyond the limits of this nuclear deal it would be considered as a breach of the nuclear deal the author tells that these actions by iran may sound dangerously aggressive that is iran is taking serious but these actions by iran are totally almost rational he tells that firstly iran's current actions prove that the us administration's maximum pressure approach under mr trump is not working secondly the author tells that the present us administration is primarily responsible for the collapse of the deal and in case of any future conflict or even a war the us will not be in a position to get any help or support from european countries thirdly if iran is actually responsible for the recent tanker attacks that happened in the gulf then these attacks indicates the type of disruption that could be caused if a war or a conflict happened this region but if iran is not behind this recent tanker attacks then the maximum pressure strategy by usa shows that a third party like usa is capable of carrying out false flag attacks purposefully to trigger an unwanted conflict so using both the uranium enrichment threat and the recent tanker attack threats iran is using counter escalation for delaying or deterring the maximum pressure strategy of usa now we have seen all along this discussion that both iran and usa are heading towards each other so as per the game of chicken that we saw either iran or usa must swerve or slow down or any one of them should change the direction the author questions that if usa will swerve because of the failure of maximum pressure approach or whether iran will be able to sustaining its maximum resistance in the wake of continued targeting by the united states or the author predicts that if both countries head together it will result in a crash that is war or a severe conflict with this we come to the end of this article discussion the displayed a practice prelims question will be discussed in the last session now this news article is about global trends report now this will be relevant in prelims levels under current events of national and international importance and also under world's geography now this global trends report is released by unhcr now unhcr is united nations high commissioner for refugees it was created in 1950 during the aftermath or after the second world war the main purpose was to help you know lacks of europeans who had fled or lost their homes the primary purpose of united nations high commissioner for refugees is to safeguard the rights and well-being of people who have been forced to flee from their country or the place they live now unhcr ensures that everybody who has been forced to flee should have the right to seek asylum and also to find safe refuge in another country now these persons who have been forced to flee are called by different names such as refugees internally displaced population returnees stateless people and also asylum seekers now refugees mean someone who has been forced to flee his or her country because of persecution or war or violence now here persecuting means ill treatment for reasons of race religion or political opinion or membership in a particular social group now the recent example is the rohingya refugees of miyana who follow islam they have been persecuted for a long time in their country on grounds of religion now internally displaced population means those persons or groups of persons who have been forced to flee or to leave their homes from where they usually live but they have not crossed the internationally recognized border of their country you can also call them as refugees in their own country returnees refer to those displaced people who are returning to the original place or the country where they have once lived stateless people means population who are not considered as a national or citizen by any country under its legislations the rohingyas are are also called as stateless people and rohingyas are mostly muslim minority who have traditionally lived in miyanmar and we are saying rohingyas are stateless people because in their own state they were not recognized as citizens even in other states also they were not recognized as citizens they were not given the rights of a citizen asylum seekers mean persons who have applied for protection in any country as a refugee and the person is also waiting for the conclusion of his or her status in the country where they have applied now with these definitions let us see the global trends report released by UNHCR now the report has said that developing countries are facing the problems of world's refugee crisis it is not the rich western nations that are facing the problems of refugees the news article states that around seven crore people have been displaced because of war or persecution and it is seen that the developing countries are hosting most of these displaced people who have fled this war or persecution and half of world's forcibly displaced population are children approximately some 3.5 crores and the refugees are around 2.59 crores and internally displaced persons around 4.13 crores and around 35 lakh people were asylum seekers in this graph you could see the proportion of displaced population out of the total world's population you could see that this ratio is on the rise for the last 10 years the proportion of population that is displaced is almost nine persons per thousand persons worldwide the report also tells that more than two-thirds of all refugees worldwide came from just five countries in 2018 now these countries are Syria, Afghanistan, South Sudan, Myanmar and Somalia and top five countries that hosted the refugees in 2018 were Turkey, Pakistan, Uganda, Sudan and Germany now you could use these information in any of your main answers with respect to if need be to highlight the refugee crisis of if asked about internal displacement of population now the displayed practice prelims question will be discussed in the last session now let us move on to the next news article now this article is about economic advisory council to the prime minister now this council has rejected a research paper of former chief economic advisor on GDP growth now this article could be relevant in prelims in current events of national importance and economic development in mains in GS paper 3 under Indian economy and issues related to growth now the news is regarding a detailed note which has been released by economic advisory council to the prime minister and in this note the council has explained its objections to a research paper on India's GDP growth which was released by former chief economic advisor Mr. Arvind Subramanian before looking at this news article let's see about economic advisory council to the prime minister this now this economic advisory council was set up with a view to provide suggestions or advice so that the government will get awareness on various viewpoints on key or important economic issues now there is no defined organizational structure in any law or even in the constitution with respect to this economic advisory council so we can say that this council is an independent body or independent mechanism and also a non-statutory non-constitutional body this council has been reconstituted many times and headed by various economists of international eminence it's also a non-permanent body see the recent council has been set up with the approval of prime minister in september 2017 and it has reputed economists and experts and there have been periods when there was no council at all so it is not a permanent body now the chairman of this economic advisory council is different from the chief economic advisor of government of India now the chief economic advisor heads the economic division of department of economic affairs now that comes under ministry of finance so know that the chairman of economic advisory council is not the same person as the or not the same designation as the chief economic advisor of government of India now let's look at the functions of this economic advisory council now we saw that it advises the prime minister it advises the prime minister on any issues related to economy which has been referred by the prime minister the council also presents its views on issues of macroeconomic importance by on its own or by so motto or based on reference from prime minister the council summits periodic reports to prime minister on macroeconomic developments and issues with implications for the economic policy and as usual one more function they will generally add in terms of any council is that they also respond or attends any other task referred by the prime minister or as and when the prime minister requires now come to the news article see this note detailed note released by this council has stated that mr. zubramanian's paper lacks rigor or that it lacks proper efforts and this paper would not stand up to academic scrutiny or academic investigation the council's note says that the paper is based on careless choice of indicators such as specific data sources and description alternative hypothesis choice of countries in the sample these are some of the indicators and these are of technical nature with respect to research and research methodology and based on these the note has said that the research paper will not stand the academic scrutiny or academic research standards this paper research paper was released in harvard university by the former chief economic advisor the paper has said that the gdp growth between 2011 and 2017 was significantly lower than the seven percent shown by the government official figures for this the council's note has said that the author of the paper could have easily criticized the methodology of gdp rather than pin pointing or rather than telling that the gdp numbers have fallen before seven percent the former chief economic advisor in the research paper has stated that the analysis of 17 indicators shows that there was an overestimation of gdp in 2011 17 so for this the council's note states that these 17 indicators are carefully selected or cherry picked according to the preference of the researcher from the center for monitoring indian economy now the center for monitoring indian economy is a private database of financial performance of indian companies and the principal source of this database is annual reports of individual companies this is how they develop data the center for monitoring indian economy the note tells that the data from this center is not a primary source of information on gdp indicators these 17 indicators are mostly related to the industrial and manufacturing sector only so if you see we have three sectors in economy agriculture manufacturing and service sector now this council says that the indicators from service sector contribute 60 percent of gdp today we saw that it contributes around 54 percent so they are saying 60 percent roughly 60 percent of gdp and indicators from agriculture contributes to 18 percent of gdp these sectors from the indicators of service sector or indicators of agricultural sector has not been taken up for this research study by the former chief economic advisor so the council's note rejects this research paper and states that it has almost neglected almost the indicators that contribute to nearly 80 percent of gdp in his research paper the former chief economic advisor states that he was not including tax collection data in his analysis because the relationship to gdp was unstable but the council says that tax collections are hard data hard data means quantitative data in the form of numbers or graphs or measurable data those data that can be quantified and they also say that these data are not based on surveys and therefore do not suffer from the disadvantage of surveys because surveys are based on representative sample of a total population and the council's note has told that the tax collection data should not have been ignored by the former chief economic advisor the government says there have been no major changes in tax laws till the end period in the authors analysis that is the researchers analysis that is up to march 31 2017 we know that gst was introduced on july 1 2017 and the tax collections got stabilized and even increased after the implementation of gst in india and this you can see in this graph provided by ministry of finance see here the red line shows the tax collections for the financial year 2017 18 the average tax collection for this financial year has been around 90 000 crores but in financial year 2018 19 you can see that the average tax collections have increased to nearly 97 000 crores right this we can see from the blue line because it shows the tax collections for the financial year 2018 2019 so we can see that the tax collections have improved after the introduction of gst in india the former chief economic advisor has told in his research paper that the income national income accounting and the methodology of the new gdp series must be reviewed for this the council's note state that the present methodology ensures that the economy is transparent and is also well managed and it is and is according to the international standards we know about prime minister's economic advisory council from prelims point of view and you can use this tax collection information with respect to gst and author's contention with respect to overestimation of gdp all these things if at all that is required for your main census now the displayed practice prelims question will be discussed in the next session the last session now let us move on to the final session of the day now the first question increase in internal production was made a priority for the first time in independent india during the prime minister ship off now in today's discussion we saw that increase in internal production was made a priority by the first finance minister of independent india mr shanmugam shetty and we saw that he was financed mr during the period 1947 to 1949 so therefore it was pandit javaharlal nehru who was the prime minister during that time period and he was the first prime minister of independent india so the answer for this question is option d javaharlal nehru now the next question which of the following countries share border with persian gulf they have given south arabia lebanon oman iraq so the options appear as bit tricky now if you don't remember the map you would easily think that lebanon is also a country that is open to persian gulf now it is wrong because lebanon shares border with mediterranean sea and not with persian gulf so if two is wrong you can easily eliminate options b and options option d so now we are left with options a and c from both these options we can see that south arabia and oman share borders with persian gulf now with respect to oman the area of musandam peninsula actually borders the persian gulf and we also saw today that iraq also shares border with persian gulf therefore the correct answer for this question is option c one three and four only third question global trends report an annual report on the world level trends on displacement is released by which of the following we saw in our analysis that this global trends report is released by united nations high commissioner for refugees so the answer for this question is option c now the next question is with respect to economic advisory council to the prime minister they have given two statements and are asking which of the statements are correct the first statement economic advisory council to prime minister has been constituted to advise the prime minister on all critical economic and related matter which have been referred to it by the prime minister the first statement is correct because that is the main function of economic advisory council so statement one is correct now the second statement the chairman of the economic advisory council is the chief economic advisor to the government of india now this statement is wrong because we saw that the chairman of economic advisory council is different from chief economic advisor of government of india the chief economic advisor heads the economic division of department of economic affairs which comes under ministry of finance therefore second statement is wrong but the economic advisory council is constituted with approval from prime minister that includes a separate chairman so the correct answer for this question is option a one only now with this we come to the end of today's the hindu news analysis if you like the video press the like button comment share and subscribe to shankaraya's academy for daily updates