{"id":61856,"date":"2020-05-30T21:00:07","date_gmt":"2020-05-30T15:30:07","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=61856"},"modified":"2020-05-30T21:50:09","modified_gmt":"2020-05-30T16:20:09","slug":"9-pm-daily-brief-may-30th-2020","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/9-pm-daily-brief-may-30th-2020\/","title":{"rendered":"9 PM Daily Brief \u2013 May 30th ,2020"},"content":{"rendered":"
About 9 PM Brief-<\/strong> With the 9 PM Current affairs brief we intend to provide our readers daily free digest of articles and editorials from multiple sources which are usually left out by aspirants. This will provide you with analysis, broad coverage and factual information in all in one pill<\/span> for<\/em> your IAS and IFS preparation. Take this pill daily to learn more.

<\/span>To access the Archives CLICK HERE-><\/a><\/div>\n

9 PM for Main examination<\/h3>\n

GS-2<\/h4>\n
    \n
  1. Industrial Dispute Act<\/li>\n
  2. India- Australia<\/li>\n<\/ol>\n

    GS-3<\/h4>\n
      \n
    1. Lowering growth rate<\/li>\n
    2. How Migrant Issue could be solved?<\/li>\n<\/ol>\n

      9 PM for Preliminary examination<\/h3>\n

      FACTLy<\/a><\/h4>\n
      \n

      1.Industrial Dispute Act<\/strong><\/h3>\n

      Source \u2013 \u00a0Indian Express<\/u><\/a><\/p>\n

      Syllabus \u2013 GS 2 – Government policies and interventions for development in various sectors and issues arising out of their design and implementation<\/p><\/blockquote>\n

      Context \u2013 Millions of desperate migrants rushing home presents the challenges associated with Industrial Act<\/p>\n

        \n
      1. <\/b>Industrial Dispute Act<\/b><\/strong>\u2013 This act was enacted to shape the relationship between employer and employee. However, it has created many roadblocks in removing the trust-deficit between two.<\/li>\n
      2. <\/b>Problematic Provisions \u00a0under Section v of Act <\/b><\/strong><\/li>\n<\/ol>\n

        \"\"<\/p>\n

        Implications of these provisions<\/b><\/strong><\/p>\n

          \n
        1. \u00a0Discourage entreprenuership<\/b><\/strong>\u2013 The thresholds placed on employers discourage them to expand their units and business. This directly affects one of the most crictial element of factor of production that is entrepreneurship.<\/li>\n
        2. Promote Informal and dwarf industries<\/b><\/strong>\u2013 Firms, in order to stay away from bureacratic hussles, employ less than 20 employees and remain dwarf in size. This in turn affects their economies of scale, overall production and profit.<\/li>\n
        3. Lack of skilling in employees<\/b><\/strong>\u2013 These provisions also discourages the employers to provide better skills to their employees. Since investment in skilling leads to employ worker for longer period but also necessitates payment of severance pay which add to cost of production for employer.<\/li>\n<\/ol>\n

          Way Forward<\/b><\/strong>\u00a0\u2013 For promoting economies of scale and do away with dwarf industries, removal of thresholds under Industrial Dispute is the need of the hour. COVID crises provide us the opportunity to learn lessons and act for welfare of have-nots of the society.<\/p>\n

          2.India- Australia<\/strong><\/h3>\n

          Source \u2013The Hindu<\/u><\/a><\/p>\n

          Syllabus \u2013 GS 2 – Bilateral, regional and global groupings and agreements involving India and\/or affecting India\u2019s interests.<\/p><\/blockquote>\n

          Context \u2013 India\u2019s first bilateral virtual meeting with Australia<\/p>\n

          \"\"<\/p>\n

          Figure 1 \u2013 Pillars of relationship<\/p>\n

          Potential in relation which are yet to be tapped<\/b><\/strong>:<\/p>\n

            \n
          1. <\/b>Mutual Logistics Support Agreement<\/b><\/strong>– This would enhance defense cooperation and ease the conduct of large-scale joint military exercises between two democracies. \u00a0It also has potential for Australia\u2019s permanent inclusion in the Malabar exercise with Japan.<\/li>\n
          2. <\/b>2+2 Format<\/b><\/strong>\u2013 Currently under 2+2 format secretary level talks are held for Foreign and Defense. This can be upgraded to ministerial level talk in the upcoming virtual summit.<\/li>\n
          3. <\/b>Pandemic control lessons \u2013 <\/b><\/strong>India and Australia can partner in learning lessons for control of pandemics. Australia has one of the lowest infection rates which make its strategy a successful tool and provide lessons for India too.<\/li>\n
          4. <\/b>Higher Education<\/b><\/strong>\u2013 Australian Universities are proving to be resilient and pioneers in distance and online learning which can be tapped for Indian students who sail across to Australia for better education.<\/li>\n<\/ol>\n

            Way Forward<\/b><\/strong>\u00a0\u2013 India- Australia have much in common, underpinned by shared values of a pluralistic, Westminster-style democracies, Commonwealth traditions, expanding economic engagement and increasing high level interaction. The pandemic induced virtual meet is an opportunity to enhance their ties at bilateral level.<\/p>\n

            3.<\/b><\/strong>Lowering growth rate<\/b><\/strong><\/h3>\n

            Source: <\/b><\/strong>The Indian Express<\/b><\/u><\/strong><\/a><\/p>\n

            Syllabus: GS 3-Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.<\/p><\/blockquote>\n

            \u00a0<\/b><\/strong>Context: <\/b><\/strong>The Ministry of Statistics and Programme Implementation (MoSPI) released the data for the fourth quarter (January to March) of the last financial year (2019-20) as well as the provisional estimates of the full-year GDP growth rate.<\/p>\n\n\n\n\n
            Expectation by government<\/b><\/strong><\/td>\n\u00b7\u00a08.5% growth (in July 2019 when it presented the Budget for that year).<\/td>\n<\/tr>\n
            The provisional figure<\/b><\/strong><\/td>\n\u00b7\u00a0Indian economy grew by 4.2% in 2019-20.<\/p>\n

            \u00b7\u00a0This is the lowest annual growth rate of GDP registered under the new GDP data series which uses 2011-12 as the base year.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

            \"\"<\/p>\n\n\n\n
            Continued weakening of India\u2019s growth momentum even before Covid-19: <\/b><\/strong><\/p>\n

            \u00b7\u00a0A similar fall can be seen in the trajectory of the nominal GDP.<\/p>\n

            \u00b7\u00a0At the time of the 2019-20 Budget presentation in July, nominal GDP was expected to grow by 12%-12.5%.<\/p>\n

            \u00b7\u00a0By the end of it, provisional estimates peg it at just 7.2%.<\/p>\n

            \u00b7\u00a0In 2018-19, the nominal GDP grew by 11%.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

            There are two reasons why this sharp deceleration in the nominal GDP matters:<\/b><\/strong><\/p>\n

              \n
            1. <\/b>The nominal GDP growth rate is the base of all fiscal calculations in the country:<\/b><\/strong>\n
                \n
              1. The government bases its calculations. For example the amount revenues it will raise and the amount of money it will be able to spend.<\/li>\n
              2. A sharp divergence in nominal GDP growth rate basically upsets all other calculations in the economy. For instance, a wrong estimate may result in less revenue generated and as a result government can\u2019t spend much as it expected.<\/li>\n<\/ol>\n<\/li>\n
              3. <\/b>Reflects poorly on the government\u2019s fiscal marksmanship: <\/b><\/strong>\n
                  \n
                1. It shows that the government was not able to assess the magnitude of economic growth deceleration.<\/li>\n
                2. It leads to inaccurate policy making because a government could end up making policies for an economy that doesn\u2019t actually exist on the ground.<\/li>\n
                3. For instance, it can be argued that in an economy that was slowing down sharply and that too on account of a decline in demand, even a massive corporate tax cut would be ineffective. To be sure, despite this once-in-a-generation reform, private investments actually fell by almost 3% in 2019-20 \u2014 in sharp contrast to the 9% increase in 2018-19.<\/li>\n<\/ol>\n<\/li>\n<\/ol>\n

                  Problems with Frequent and significant revisions in quarterly GDP:<\/b><\/strong><\/p>\n