 Welcome to the Hindu News Analysis by Shankar A.S. Academy. Displayed are the list of news articles taken for today's analysis and the page numbers in different editions of the newspaper. The link for the handwritten notes in the PDF format and the timestamping of the discussed articles are given in the description box and also in the comments section for the benefit of mobile phone viewers. Now let us move on to the analysis of first news article. This news article states that ex-RBI chief Dr. Rankarajan favours cash recapitalization of banks over the recapitalization of banks through bonds. The former RBI governor's opinion is that it is time to consider a switchover from bonds to cash for recapitalization purpose. The backdrop of economic slowdown faced by the Indian economy, the statements made by Dr. Rankarajan assumes significance. See the syllabus relevant for the analysis of this news article has been highlighted here for your reference. In the context of analyzing this news article, we will see about the news article. Then we will see the observations made by Dr. Rankarajan who is one of the eminent economists in our country. Then we will see why he is of the opinion that infusion of cash is preferable over bonds. See, because of the challenges faced by banking sector with respect to non-performing assets, the Indian economy is also facing several challenges. When we say non-performing assets, we are referring to those assets which are given as loans by the banks. But the banks are facing challenges in terms of getting timely returns of the loans given. Here the returns could be in the form of interest or it could be in the form of principle or installment of principle or both interest and principle. Simply we can say that any asset becomes a non-performing asset when it is unable to generate income for the bank. A non-performing asset is defined as a credit facility for which interest or installment of principle or both has become due for a specific period of time. So when banks are unable to realize these returns, when banks are unable to recover these loans, this impacts the liquidity requirements of the banks. So in such cases, the financial health of the banks will be at risk. So what is required? Some kind of corrective measures are required. So as a corrective measure, the government of India, who is the major stakeholder in public sector banks, or we can say the government of India as the majority stakeholder when it comes to public sector banks, it has initiated recapitalization of the banks. When we say recapitalization, it involves providing additional capital to the banks so that the banks can meet regulatory norms, for example, capital adequacy ratio and various other regulatory principles, various other measures prescribed by the regulatory norms. And it also includes providing additional capital for the bank's requirement for growth. See, the government of India has already infused around 2 lakh crore worth of recapitalization in last three financial years. In August 2019, the government announced plans for capital infusion of around Rs. 70,000 crore in public sector banks. This 70,000 crore of additional capital infusion was to be in the form of, was announced to be in the form of issuing bonds. It is in this context, the former RBA governor has expressed concerns over the mode of recapitalization for the banks, for the banks, and he has preferred recapitalization through infusion of the cash rather than infusion by issuing the bonds. So what do we mean when we say recapitalization through bonds? See, in this process, bonds will be issued by central government, and these bonds are called as recapitalization bonds. These bonds will be issued at some interest rate, for example, say 7%. So who will be purchasing these bonds? These bonds are purchased or subscribed by the public sector banks only. While subscribing or while purchasing, they will lend money to the central government. For the money lent by the public sector banks, the banks will be getting the interest from the central government. We will see how the government of India may pay the interest after some time. So the money raised by the central government by issuing these recap bonds, these money will be used for purchasing shares from the stressed public sector banks. While purchasing the shares, the government will pay equity capital to the stressed public sector banks. As a result, or since these shares are purchased by the central government, the government will get dividend or it will expect dividend from these banks. What if, by receiving the equity capital, the banks are actually recapitalized by the central government? What if the banks perform very well and it could be able to pay the dividend to the central government? In this case, the central government need not worry about paying interest rate to the money it has received by selling bonds, because it can easily pay the interest from the dividend realized through the equity capital. But what if the stressed to public sector bank continues to be stressed and it is unable to generate the dividend? Even in this case, as per the commitment under the bonds, the central government has to pay interest to the banks. In the absence of dividend, the central government has to curtail expenditure in some other way or it has to pay the interest from the tax resources, from the tax revenue. That means when banks cannot generate dividend, the taxpayers are also at risk. But if the banks can function very well and if it can handle the NPA crisis, if it becomes a profit making body in the future, then after the maturity date, say for example, some 10 years from the date of purchasing the bonds issued by the central government, so after the maturity date, the central government will pay the entire money back to the bank. So in one way, we can say it's a nice correction mechanism. But the argument now is, is it going to be a good option for the central government? Recapitalize banks by issuing bonds in the present economic situation in the country. Is it advisable in the present scenario of economic slowdown in the country? Because end of the day, if the banks are unable to make the dividend through this process, the banks will be receiving only the interest from the government. There is no actual money received by the bank immediately in total. So that is why the XRBI chief is preferring recapitalization by cash rather than by issuing the bonds. And one more challenge is there. If you go by issuing the bonds, it is a process, it is a procedure, it's a huge process as we already discussed. Immediately the bank may not be getting the equity capital. But if you see the present stress of public sector banks, they require money immediately. So best avenue is by cash recapitalization rather than by issuing the bonds. So these are the reasons why Dr. Rangarajan has preferred the recapitalization of banks through the mode of cash rather than through the mode of issuing bonds. Then the XRBI chief has also suggested to indent greater autonomy for the boards of the banks. And these boards has to keep distance from the government and that the government should not interfere in the decisions of the boards. Then with respect to economic slowdown, he is of the opinion that economic growth may pick up from next year onwards. And it would take two to three years to get back to the growth rate or to achieve the growth rate of higher than 7%. And with respect to achieving or becoming a 5 trillion economy within 2025 by the prime minister, Dr. Rangarajan is of the opinion that considering the present economic scenario of the country or considering the muted or declining economic growth in the country, we will definitely achieve this goal, but we may require more time. It could be to the tune of eight years. So these are some of the information with respect to the analysis of this news article. Now let us move on to the analysis of next news. This editorial is about organ donation. Here the authors have discussed the worrying trends of organ donation in our country and the need to strengthen the process of organ donation in India. The syllabus relevant for the analysis of this news article has been highlighted here for your reference. Authors talk about organ donation day observed in India that is on 30th November every year. At the global level, organ donation day is observed on 13th August every year. But till now, the United Nations has not recognized the importance of observing organ donation day. See, organ donation day is observed wherein the primary objective is to promote organ donation and organ transplantation so that a number of persons suffering from organ failure, they can get one another chance to live by the organs donated by others. Those who have donated their organs, these persons could be those who have lost their lives in road accidents or any other medical reasons. The authors are mentioning that there are negative perceptions about organ donation and these negative sentiments are growing among the people day by day. And these negative perceptions actually undermine or weaken the altruistic donation mindset of donor families. Here the word altruistic means selfless. Altruistic donation refers to selfless donation where the process of donation involves in such a way that the donors are actually unknown to the recipient who receives the organs from the donor. The authors have mentioned some data with respect to altruistic organ donation in the state of Kerala. If you see in 2015, altruistic donation was carried out from 76 deceased or died donors. But if you see in the year 2018, it has dropped to just eight. So there is a huge drop in the trend of altruistic donation in the state of Kerala. The authors are attributing the drop in altruistic donation to the negative perceptions that are growing among the people. Now let us see some of the growing negative perceptions with respect to organ donation. One main reason mentioned by the authors is the trust deficit. People think that private hospitals are involved in some scandals. One is that they are declaring persons brain dead even when they are not. Then they may think that private hospitals harvest the organs of some of the patients or members just to make profit. The authors mentioned that such a belief system exists among the masses because of the reality that healthcare system in India is highly privatized. And if you see, private players provide treasury healthcare services mostly in India and it is really expensive to avail treasury healthcare services for a common man in our country. Generally, we can split healthcare system into three categories. One is primary healthcare, secondary healthcare and treasury healthcare. Here, treasury healthcare refers to high level healthcare that involves complex surgery processes and treatment. Mainly, it involves specialized consultative care. The authors mentioned that treasury healthcare services provided by the private players is a profit seeking business for them. So, this has resulted in a trust gap between the patients and doctors. And this trust gap widens day by day so the patients don't trust doctors nowadays and they seek even second and third opinion with respect to treatment. So, trust deficit is one factor that reinforces various negative perceptions. Now, the second factor is with respect to inequality. In the beginning, with respect to organ donation day observation, we said that it is to promote organ donation and organ transplantation. So, there are two things. Organ donation, organ transplantation because once the organ is donated, it has to be transplanted to the recipient and this transplantation is the process of implanting the donated organ into the body of the recipient. Here, organ donation is free, altruistic, selfless. But what about organ transplantation? Transplantation costs are high. The author tells that it ranges somewhere between 5 lakh to 25 lakh including the profit that are made by the hospital or including those amount that are required by the hospital for the services rendered with respect to organ transplantation. So, such high costs has led to an unavoidable suspicion that there could be some unethical practices in the services of organ transplantation. These unethical practices could be as we saw already declaring a person is branded even when they are not for the sake of organ demand or these practices could be those which are in violation of the prescribed rules and standards for organ donation and there are many other practices. These facts were also being highlighted in one of the recently published book called as Healers or Predators, Healthcare Corruption in India. So, the high cost of transplantation has made it unaffordable for the middle class people or the poor people to transplant the donated organs. So, who are the majority of organ donors? The authors mentioned that majority of accident victims are donors and majority of them are from lower middle class and poorer classes. But if you see the organ recipients, they are from high income group who can afford transplant surgery and who can afford costly lifetime medication after the transplantation process. And this cost factor is the key reason why more than 75% of donated hearts and lungs are not yet transplanted. So, affordability with respect to accessing the services of transplantation is the main factor that keeps poor people away from receiving the organs even though they are available for transplantation. This is what the authors refer to inequality in the access to treatment. So, this inequality is a second factor. Finally, the authors have discussed the solutions to address the issues of trust gap and inequality. They are telling that it may not be completely addressed but it could be definitely moderated to some extent provided some meaningful steps are taken. Now, let's see some solutions given by the authors of this editorial. The first suggestion is that hospitals must be regulated satisfactorily through the legislations and the rules that are put in place already. Here when we say legislation, we are referring to transplantation of human organs at of 1994. See, this legislation was enacted to provide the regulation of removal, storage and transplantation of human organs for what purposes it can be transplanted for therapeutic purposes that is for treatment purposes. And this legislation also provides for prevention of commercial dealings in human organ donations various other related matters. The authors are saying that this law needs to be revised to make it more effective. With respect to regulation and approving the transplantation activities, at present there are authorities under the law in every state for this process. But the authors suggest that these needs to be substituted with transplant approval by self declaration. See, this suggestion is authors personal opinion. Next, the authors suggest that there should be mandatory sample verification of transplantation wherein civil society shall participate. Here verification has to be carried out by civil society. It could be like social audit. They can verify whether the authorities involved has adhered to all the procedures as prescribed under the law and as prescribed under various rules. Such a kind of social audit is expected to improve compliance mechanism by the private hospitals by various stakeholders who are involved not only in organ donation but also in organ transplantation. And such a mechanism is expected to bring more hospitals to be involved in these processes. This is what the expectation of the authors. Then the authors are saying that at present central government is strongly involved in organ distribution. If you see there is an organization called as national organ and tissue transplant organization and this is the national level organization in India which is set up under the directorate general of health services of ministry of health and family welfare. Under this organization there is a network called as national human organ and tissue removal and storage network. This division of national organ and tissue transplant organization functions as the top center or apex center for coordination and networking for procurement and distribution of organs and tissues at the national level or at all India level. And this network will maintain a registry of organs and tissues donation and transplantation in the country. Here the authors feel that there has to be considerable amount of autonomy that has to be given to the states to enhance administrative feasibility with respect to organ donation and also with respect to organ transplantation so that more hospitals may take this exercise voluntarily and more transplantations and more donations can take place. Then the authors suggest that all state level organ distribution agencies they are needed to make their operations fully transparent so as to create confidence among the public in the system. They could make the norms for organ distribution, organ transplantation and the details associated with transplantation and donation of every organ online this will help building public confidence in the system. We saw that there exists an inequality in the transplantation process precisely because of the reason that while organ donation is free organ transplantation is costly to the range of from 5 lakh to 25 lakh. As a result of this only affordable people or rich people only they are able to avail such services as a result the poor population and the lower middle class people and the low income group people they are unable to access such facilities even though majority of the donors belong to this category of population. For this the authors suggest an approach wherein every third or fourth transplant done in a private hospital shall be done free of cost to a patient from a public or government hospital. They tell that this will act like cross subsidization. Here when we say cross subsidization it could give an understanding like maybe there will be low cost charged from the patients from public or government hospitals whereas charged from the patients of private hospitals could be bit more so that either the gap in the amount shall be compensated by the government or the gap in the amount shall be compensated by the charge levied on the high income group patients or it could make a system in such a way that at least one in four organs reached to the community of majority of organ donors. Here the community we refer as the low income group population and low middle class population. These two category of citizens they are found to be donating their organs for transplantation and one common solution for inequality with respect to availing the transplantation services the public hospitals can come forward and they can help the poor people to get the transplantations done. But here there is a concern that the public hospitals should not be involved very much in transplantation processes because it could not carry out this task effectively because the public spending on health care is very low in our country to the tune of just 1.2 percent of the GDP. If you see in financial year 2013-14 India has spent just 1.2 percent of its GDP. In financial year 2017-18 it has spent 1.4 percent of GDP. Authors are mentioning that the amount that we spend is just one third of some of the developing countries spend for health care. Here they could be referring to China if you see for 2016 according to World Health Organization China has spent more than three times what we are spending for health care for the tune of 4.98 percent of its GDP. So the authors tell that priority of public hospitals should be on spending the limited money they possess on areas that would benefit more persons. In a way they are telling that you focus spending more on those services with respect to primary health care and those services for which the number of persons depending or more. They have quoted a report of WHO consultative group which was released in 2014 it discusses a study from Thailand. The report has found that if the money spent for dialysis procedures or processes in Thailand if that same amount of money was spent on tuberculosis control then it could have saved 300 times more healthy life years. Here dialysis refers to the treatment that filters and purifies the blood using a machine. This helps to keep body fluids and electrolytes in balance when the kidneys cannot do their natural biological job. Normally when there is a kidney failure such dialysis treatment facilities are offered to patients. Here we mentioned about life years it refers to the additional number of years that a person lives because of receiving a treatment. So this report mentions that it is not wise to spend on low priority services or it is not wise to spend on a service for which the result of life years is less comparing to giving treatment for other diseases or infections or priority areas. So where should public hospitals or government hospitals focus with respect to organ donation and organ transplantation? They should focus on preventing organ failure and they should focus on other high priority health care services so that many more lives can be saved many more life years can be saved and as a result of taking necessary actions for preventing organ failure they're actually saving the money spent on organ transplantation because of the reductions in organ transplantation. So these are some of the suggestions given by the authors to address the trust gap and the inequality which at present impact the family consent and which at present also impact the negative perceptions which are growing in recent days with respect to organ donation and transplantation. So we saw about the various factors mentioned by the author then we saw the suggestions given by the authors now let us move on to the analysis of next news article. This news article is about the arguments and counter arguments over the NAG anti-tank guided missile. See this missile is being developed by the Defense Research and Development Organization. The syllabus relevant for the analysis of this news article has been highlighted here for your reference. First let's understand the background of this news. See recently Indian Army has successfully test fired the spike long-range anti-tank guided missile. This missile is known for hitting enemy tanks when these enemy tanks are within a range of 4 kilometer. Here the point to notice this spike long-range anti-tank guided missile is developed by Rafael Advanced Defense Systems the company which is based in Israel. See this is a Israel government owned corporation. So don't confuse this with the Rafael fighter jets which are manufactured by the company which is based in France called us the assault aviation. So this successful test fire happened on one side and on the other side DRDO is developing an indigenous state of the art anti-tank guided missile called us NAG. So the Israeli firm is now saying that since the tests that are carried out with respect to spike missile is successful it is asking the Indian government and Indian army to revisit their plans to develop NAG missile and also to revisit their invitation to the Indian industry to develop a third generation missile indirectly they are saying that you consider procuring spike missile from us. So these matters are being discussed in the news and several media platforms and these are some of the reasons why DRDO has given a quick response defending the NAG program or the NAG missile development. So the DRDO has stated that NAG is in its advanced stages of development see this NAG missile is a third generation anti-tank guided missile it has top attacking capability so that it can effectively engage and destroy all known categories of enemy tanks and one specialty is that it can be operated during both day and night. So whatever be the category of enemy tank this missile has the capability to hit any category of enemy tank and this missile is one of the five strategic missiles planned to be developed under the integrated guided missile development program. This integrated guided missile development program was started in 1983 under the leadership of the missile man of India Dr. A.P.J. Abdul Kalam. Its objective was to enable India in attaining self-sufficiency in the field of missile technology. This program was sanctioned to develop Prithivi missile, Trishul missile, Akash, NAG and also Agni missile. If you see the situation at present NAG as stated by DRDO is in its advanced stages of development. The three other missiles Agni, Prithivi and Akash these missiles have been successfully developed tested and even inducted into the armed forces. The Trishul project was shut down after being developed as a technology demonstrated. They simply demonstrated the technologies through a prototype or through a model of Trishul. Now let us see more about this NAG missile. It is being stated that it is a third generation missile. It works on fire and forget principle. It is a anti-tank guided missile. It is designed to destroy modern battle tanks and some heavily armored targets. So when we say fire and forget it means that the missile do not require further guidance after the launch of the missile and it can hit the target even though the launcher is not in the line of sight of the target. And this missile works on the principle of lock on before launch. This means that the NAG missile is capable to lock on to its target before being launched from its carrier vehicle. That is even before launching the target is set. When we say lock on after launch this means that the missile is locked on to the target after the launch of the missile. Locking on refers to a target seeking system that is continuously tracking a target by using coordinate system. See this NAG missile can be launched from land platforms and also from air based platform. An example for air based platform could be helicopter. It can be launched from land with the use of NAG missile carrier shortly called as NAMICA and the helicopter launched configuration is designated as Helena helicopter launched NAG. It has a minimum range of 500 meters and a maximum range of 4 kilometers. So in terms of range both spike and NAG are almost same. The news article mentions that a new man portable anti-tank guided missile is also in its advanced stages of development. The article mentions that it is a fourth generation anti-tank guided missile but some sources refer it as a third generation missile only. So we'll clarify about man portable anti-tank guided missile whether it is third generation or fourth generation with receiving more information from the authentic sources. So here as the name man portable missile indicates here the launch pad is portable therefore it improves the flexibility of operation so it can be easily carried or moved. So these are the information with respect to NAG missile developed by DRDO. Now let's see a few information about defense research and development organization. See it is the premium defense research and development wing of the Indian government established in the year 1958. Functioning under ministry of defense its vision is to empower India with cutting its defense technologies and to achieve self-reliance in critical defense technologies. It has been playing a very important role in equipping our armed forces with state-of-the-art weapons systems and equipment. At present if you see it has a network of more than 50 laboratories that are specially designed to engage in developing defense technologies. It could be from various disciplines including aeronautics, armaments, electronics, combat vehicles, missiles. It could also include advanced computing and simulation and even more disciplines. So these are some of the information with reference to the analysis of this news article. We saw about the background of the news article why there has to be a defensive argument from the side of defense research and development organization. Then we saw factors about NAG missile and we saw few information regarding the integrated guided missile development program. Finally we concluded with discussing few facts with respect to DRDO. Now let's move on to the analysis of next news article. This news article is about certain indicators that shows the present situation of our Indian economy. We will be discussing the economic terms such as gross domestic product, gross value added and their present statistics. First let's see about gross domestic product. See it is the final value of goods and services that are produced within the geographic boundaries of our country for a specified period of time normally for the period of one year. This GDP growth rate is an important indicator of economic performance of a country. So how it can be measured? See there are three methods one is output method or also called as product method then there is expenditure method then there is income method. See the output or product method it calculates the value addition. When we say value addition we are referring to the addition of value to the raw materials or addition of value to the intermediate goods. This value addition can be carried out by a company or a firm or a group of individual or an individual through various activities of production. Here the GDP or the value added is calculated as the product of or multiplication of price of products and the quantity of products. The next method is expenditure method. Here it measures total expenditure expenditure of whom? It will be the expenditure carried out by households or firms and various other entities. The expenditure here is for goods and services within the domestic boundaries of our country. So the GDP as per the expenditure method is C plus I plus G plus X minus M. Here C refers to consumption expenditure I refers to investment expenditure and G refers to expenditure of the government or the government spending and X minus M as we know it is exports minus imports that is net exports. When import is more than exports this value will be negative. The next method is income method. Here it measures the total income that is earned by the factors of production that is earned because of land, labor, capital and entrepreneurship within the domestic boundaries of our country. So the GDP as per income method is rent because of land, wages because of labor, interest because of financial capital and profit because of capital and operating surplus or mixed income because of entrepreneurship. Here when we say mixed income it refers to mixed income of self-employed persons. In India many persons are engaged in household industries, family farms and some other unorganized enterprises. Here the nature of employment will be self-employment nature. As a result it is difficult to separate the wages for the work done by the self-employed individuals from the profits earned by them. Therefore the incomes earned by these individuals if you see it will be mixture of wages, rent, interest and profit and since it is a mixture it is called as mixed income of the self-employed. If you see the contributions to GDP these are mainly divided into three broad sectors one is agriculture and allied services then industry sector and finally service sector. Now if you see the news article it states that the growth in the GDP in the second quarter of 2019-2020 has hit a 25 quarter low of 4.5 percentage that is the GDP in the second quarter of financial year 2020 that is during the period of July to September it is the lowest in the last 25 quarters or is the lowest in last six years and three months. In quarter two of this financial year the manufacturing sector has contracted one percentage. This reduction or contraction is from the growth of 6.9 percent in the quarter two of last financial year. Now coming to agriculture sector it has seen a growth of 2.1 percent in the second quarter of this financial year but in last year in the second quarter it was 4.9 percent and during the first half of this present financial year the sector has grew just 2.1 percent each. The situation last year was 5 percent in the first half. Before entering into the sub sector specific growth details under the services sector let's know that services sector in India it will include financial and insurance activities, real estate activities, professional, scientific and technical activities, public administration and defense, education, arts, entertainment, recreation and some other services. So the news article mentions that public administration, defense and other services has seen 11.6 percent growth in Q2 compared with 8.6 percent in Q2 of previous year. Then the growth in financial, real estate and professional services has slowed down to 5.8 percent in quarter two of financial year 2020 compared with 7 percent growth in quarter two of last year. Now let us see about gross value added. It is obtained by subtracting the value of intermediate consumption from the value of output. But know that when net tax is added with gross value added we get gross domestic product. Here when we say net tax we are referring to the difference between indirect tax and subsidies. Therefore they will say that gross value added gives a picture of economic activity from the producer side or from the supply side whereas GDP gives the picture from the consumer's perspective or from the demand perspective. This is because GDP includes a dimension called as net tax whereas this component is absent in the gross value add. So according to the news article the growth in gross value added has also dropped to 4.3 percent in quarter two of financial year 2019 2020 from 4.9 percent in quarter one of last year and from 6.9 percent of quarter two of last year. Then the news article talks about private final consumption expenditure. See this expenditure includes final consumption expenditure of households and non-profit institutions serving households. When we say non-profit institutions serving households we are referring to temples gurudwaras and such charitable structures. So the private final consumption expenditure it is the total amount spent by households and non-profit institutions like temples gurudwaras on the goods and services. So the article mentions that this PFC has grown 5.06 percent in quarter two of this financial year compared to 3.14 percent in the quarter one. The news article mentions that this private final consumption expenditure has grew 5.06 percentage in quarter two of this financial year. It is also a measure of consumption demand. Then the news article talks about gross fixed capital formation. It mentions that it grew only by 1.02 percent in quarter two of this financial year which is drastically lower if we compare with the growth of gross fixed capital formation in quarter two of last financial year at that time it was 11.8 percentage. So what is this gross fixed capital formation? When we discussed about investment climate on 22nd November 2019 we defined that investment rate is measured as the gross fixed capital formation as a percentage of GDP that is out of total GDP how much percentage is gross fixed capital formation and that day the news was that new investments made in financial year 2020 is the lowest in the last 15 years. See generally when we say gross fixed capital formation it includes the money spent for acquiring produced assets and the money spent for production of assets by producers but it does not include or it is subtracted by the value of disposed assets and this gross fixed capital formation therefore is an indicator or a measure of gross net investment in fixed capital assets. These investments could be carried out by enterprises, government or households within our domestic economy. Here when we say fixed capital it includes dwellings, building, machinery and equipment. So this gross fixed capital formation is the indicator of level of investment in the country made by government and private sector and in the last part the article mentions about the growth rate in nominal and real terms. If you see this graph you can identify that both nominal GDP and real GDP they are growing at the slowest pace since the year 2014. Here when we say nominal GDP it is the GDP that is calculated at the prevailing prices or it is the GDP that is calculated based on the current prices in the market. So when we say real GDP it refers to measure of GDP that is adjusted to the inflation in a particular year that means it is a measure of GDP at constant prices with respect to a particular base year. So these are some of the information with respect to the analysis of this news article. We saw about GDP, the three methods, output method, expenditure method, income method. Then we saw few information given in the news article with respect to manufacturing sector, agriculture sector, services sector. Then we saw about gross value added and finally we saw about private final consumption expenditure and gross fixed capital formation. Now let us move on to the analysis of next news article. This news article is about FASTAC. The syllabus relevant for the analysis of this news article has been highlighted here for your reference. We have discussed in length about FASTAC on 14th October 2019. On that day we saw that FASTAC is a device for making toll payments directly when the vehicle is in motion that is there is no need for the vehicle to stop at toll booths and FASTAC works with RFID technology that is radio frequency identification technology. We also saw in detail about RFID technology and in specific about the passive RFID technology based on which FASTACs work. We also saw that ministry of road transport and highways had declared that except one lane on each side, all lanes in all toll fee plazas on national highways across the country as FASTAC lanes and it was announced that it will be implemented from 1st of December 2019. Now the news is that this date has been extended to December 15. The reason cited by NHAA that is the National Highways Authority of India was that many citizens had not yet enabled their vehicles with FASTACs. So what will happen if a user is not going to get FASTAC ID? According to rule 6 sub rule 3 of the National Highways fee rules of 2008, non FASTAC users will be charged double the fee if they pass through FASTAC lanes. This is to be implemented from December 15. We saw that except one lane in each side all the lanes will be made FASTAC lanes and this one lane may be kept as a hybrid lane. It will accept FASTAC and also other modes of payment even after the December 15 deadline and this lane will be converted into a dedicated FASTAC lane in a time bound This is all about this news article. However, you just have an idea about the basic difference between the active RFID technology and passive RFID technology. We have given in the form of a table. See active RFID technology works with internal power source whereas in passive there is no internal power source and if you see which one is expensive it is active RFID technology wherein the range of operation is also higher compared to passive RFID technology. Here the range refers to the distance between the FASTAC affixed on the car or a vehicle and the RFID reader in the toll booth. So these are some of the information with respect to the analysis of this news article. Now let us move on to the practice questions discussion session. This question is with reference to recapitalization. They are asking which of the following processes are involved in the recapitalization of public sector banks often seen in the news. Issuing the bonds, infusion of cash, issuing the shares. They are asking to select the correct answer. We know that recapitalization can be done by infusion of cash but two options are not giving that as a correct mode for recapitalization. So you can eliminate option B and option C. Now in option A and option D one and two are already there. We have to verify whether the third mode is there or not. It deals with issuing the shares. We know that the process of recapitalization by issuing the bonds also includes the process of issuing the shares. Here we are referring to the shares that are issued by the stressed public sector banks which are bought by the government of India. It is in this process of purchasing the shares the equity capital comes to the stressed public sector banks which is the end of the recapitalization process. Initially it begins by issuing the bonds by the central government. These bonds are purchased by public sector banks while purchasing the bonds banks lend money to the central government for which the central government will pay a prescribed interest rate till the maturity date. From the amount realized through issuance of bonds the government purchases shares from the stressed public sector banks. In the process of purchasing the shares the government provides equity capital to the banks. After receiving the equity capital the bank will realize a dividend which is paid to the shareholder which is the government. So here all the three modes are there in the process of recapitalization so the correct answer is option D12 and 3. Now this question is with reference to gross domestic product. They have given two statements and are asking which of the other statements are correct. First statement GDP is the final value of goods and services produced within the geographic boundaries of a country during a specific period of time normally this statement is correct. Here the word final value of goods and services is important. Now the second statement GDP gives a picture of the state of economic activity from the producers or supply side point of view. This statement is incorrect because it is gross value added that gives the picture of state of economic activity from the producer side or from the supply side. GDP it gives the performance or it gives the perspective or picture from the consumer side or from the demand side. Gross value added represents the economic activity from producer side particularly with respect to value addition and GDP gives the perspective from demand side particularly in terms of indirect taxes. So here the second statement is wrong therefore the correct answer is option A111. Now this question is with reference to NAG missile. They have given three statements and are asking which of the above statements are correct. First statement NAG is an indigenous anti-aircraft guided missile. See NAG is an indigenous anti-tank guided missile that can be launched from land or from air-based platforms such as helicopter. So the first statement is incorrect. Once you find first statement is incorrect you try to eliminate those options which say that first statement is correct. So with this we can eliminate option A option C option D and you can directly increase your probability of attempting correct answer from 25 percent with four options to 100 percent to option B two and three only which is the correct answer. So that means statement two which is based on fire and forget principle is correct and statement three it is developed by DRDO under integrated guided missile development program is also correct. So the correct answer option B two and three only. With this we come to the end of today's the Hindu News Analysis. 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