{"id":62248,"date":"2020-06-09T21:00:43","date_gmt":"2020-06-09T15:30:43","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=62248"},"modified":"2020-06-09T17:15:06","modified_gmt":"2020-06-09T11:45:06","slug":"9-pm-daily-brief-june-9th2020","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/9-pm-daily-brief-june-9th2020\/","title":{"rendered":"9 PM Daily Brief \u2013 June 9th,2020"},"content":{"rendered":"<div class=\"content-box-blue\"><span style=\"color: #333333;\"><strong>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 <em><span style=\"color: #000080; font-size: 14pt;\">all in one pill<\/span> for<\/em> your IAS and IFS preparation. Take this pill daily to learn more.<br \/><br \/><\/span>To access the Archives <a href=\"https:\/\/forumias.com\/blog\/9-pm-brief\/\">CLICK HERE-&gt;<\/a><\/div>\n<h3>9 PM for Main examination<\/h3>\n<h4><strong><b>GS-2<\/b><\/strong><\/h4>\n<ol>\n<li><b><\/b>What is the way forward in India-Nepal\u00a0relations?<\/li>\n<li>Importance of\u00a0Local governance during pandemics<\/li>\n<li>Importance of E-Diplomacy in the time of COVID-19.<\/li>\n<\/ol>\n<h4>GS-3<\/h4>\n<ol start=\"4\">\n<li>Fiscal Deficit\u00a0\u2013\u00a0Direct\u00a0Monetization\u00a0as possible solution<\/li>\n<li>Indian Navy\u00a0\u2013\u00a0The Third Pillar in our security establishment<\/li>\n<\/ol>\n<h3>9 PM for Preliminary examination<\/h3>\n<h4><a href=\"#link1\">FACTLy<\/a><\/h4>\n<hr \/>\n<h3 class=\"note1\"><strong><b>1.What is the way forward in India-Nepal\u00a0relations?<\/b><\/strong><\/h3>\n<p><strong><b>Source:<\/b><\/strong>\u00a0<a href=\"https:\/\/www.thehindu.com\/opinion\/op-ed\/resume-dialogue-with-nepal-now\/article31781370.ece\"><u>The Hindu<\/u><\/a><\/p>\n<blockquote><p><strong><b>Syllabus:<\/b><\/strong>\u00a0GS-2- International Relations<\/p><\/blockquote>\n<p><strong><b>Context:\u00a0<\/b><\/strong>Recently, Nepal published a new political map showing the areas of Lipulekh, Kalapani, and Limpiyadhura as part of its territory.<\/p>\n<p><strong><b>Background:<\/b><\/strong>\u00a0Nepal\u2019s move to publish a new map came after India published\u00a0a\u00a0map\u00a0in November 2019\u00a0which included\u00a0the Lipulekh and Kalapani areas in its claimed territory.\u00a0The border dispute between the countries aggravated after recently\u00a0India inaugurated\u00a0a\u00a0road linking\u00a0Dharchula\u00a0in Uttarakhand state to Lipulekh, as part of the Kailash-Mansarovar\u00a0pilgrimage route.<\/p>\n<p><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-62258\" src=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2020\/06\/Picture1-13.png?resize=640%2C404&#038;ssl=1\" alt=\"\" width=\"640\" height=\"404\" srcset=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2020\/06\/Picture1-13.png?w=640&amp;ssl=1 640w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2020\/06\/Picture1-13.png?resize=300%2C189&amp;ssl=1 300w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2020\/06\/Picture1-13.png?resize=150%2C95&amp;ssl=1 150w\" sizes=\"auto, (max-width: 640px) 100vw, 640px\" \/><\/p>\n<p><strong><b>The Challenges in India-Nepal Ties<\/b><\/strong><\/p>\n<table>\n<tbody>\n<tr>\n<td width=\"186\"><strong><b>Challenge<\/b><\/strong><\/td>\n<td width=\"438\"><\/td>\n<\/tr>\n<tr>\n<td width=\"186\"><strong><b>Territorial\/Border Disputes<\/b><\/strong><\/td>\n<td width=\"438\">The Treaty of Sugauli signed by the Kingdom of Nepal and British\u00a0India in 1816 located the Kali River as Nepal\u2019s western boundary with India.<\/p>\n<p>However, the discrepancy in locating the source of the river led to boundary disputes between India and Nepal.<\/td>\n<\/tr>\n<tr>\n<td width=\"186\"><strong><b>Internal Security<\/b><\/strong><\/td>\n<td width=\"438\">There is an open border between India and Nepal which leads to illegal migration and human trafficking<\/td>\n<\/tr>\n<tr>\n<td width=\"186\"><strong><b>Peace and friendship treaty<\/b><\/strong><\/td>\n<td width=\"438\">India-Nepal Friendship Treaty, 1950 has been criticized by the Nepali political elite as an unequal one. For example, the treaty obliged Nepal to inform India and seek its consent for the purchases of military hardware from third countries<\/td>\n<\/tr>\n<tr>\n<td width=\"186\"><strong><b>India\u2019s Dominance<\/b><\/strong><\/td>\n<td width=\"438\">There is a widespread perception in Nepal that India does not respect the country\u2019s sovereignty and that it often intervenes in Nepal\u2019s domestic affairs.<\/td>\n<\/tr>\n<tr>\n<td width=\"186\"><strong><b>Nepal\u2019s growing proximity to China<\/b><\/strong><\/td>\n<td width=\"438\">China has become one of the most important trading partners of Nepal. It has\u00a0also\u00a0provided liberal aid for building infrastructure in Nepal\u00a0and\u00a0undertaken many infrastructure projects. For Example, China\u2019s freight train to Nepal<\/td>\n<\/tr>\n<tr>\n<td width=\"186\"><strong><b>Trade<\/b><\/strong><\/td>\n<td width=\"438\">Nepal\u2019s trade deficit with India has surged in recent years with continuously rising imports and sluggish exports. Indo-Nepal trade continues to remain massively in India\u2019s favor.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><strong><b>What should be done to improve India-Nepal ties?<\/b><\/strong><\/p>\n<ul>\n<li><b><\/b><strong><b>Strengthening Diplomatic dialogue:\u00a0<\/b><\/strong>Diplomatic dialogue between India and Nepal should be resumed at the earliest possible. Further, embassies on both sides should be allowed to function freely.<\/li>\n<li><b><\/b><strong><b>Respecting Nepal\u2019s Sovereignty:<\/b><\/strong>India must respect Nepal\u2019s sovereignty and should not meddle in the internal political affairs of Nepal.<\/li>\n<li><b><\/b><strong><b>Neighborhood First Policy:<\/b><\/strong>Through neighborhood first policy, India need to build the trust and show that Nepali nationalism and anti-Indianism are not the two sides of the same coin.<\/li>\n<li><b><\/b><strong><b>Tackling China:<\/b><\/strong>India need to counter China\u2019s more assertive foreign policy through soft power and should\u00a0emphasize on its historically close cultural, religious, and people-to-people relations with Nepal.<\/li>\n<\/ul>\n<h3 class=\"note1\"><strong><b>2.Importance of\u00a0Local governance during pandemics<\/b><\/strong><\/h3>\n<p><strong><b>Source:\u00a0<\/b><\/strong><a href=\"https:\/\/www.thehindu.com\/opinion\/op-ed\/the-critical-role-of-decentralised-responses\/article31782116.ece\"><strong><u><b>The Hindu<\/b><\/u><\/strong><\/a><\/p>\n<blockquote><p>Syllabus: GS 2-Functions and responsibilities of the Union and the States, issues and challenges pertaining to the federal structure, devolution of powers and finances up to local levels and challenges therein<\/p><\/blockquote>\n<p><strong><b>Context:\u00a0<\/b><\/strong>The COVID-19 pandemic has shown the critical role of local governments and\u00a0decentralised\u00a0responses.<\/p>\n<p><strong><b>Advantage for Local governments:\u00a0<\/b><\/strong>In terms of information, monitoring and immediate action which can meet any disaster such as COVID-19.<\/p>\n<table>\n<tbody>\n<tr>\n<td width=\"601\"><strong><b>Core issues:\u00a0<\/b><\/strong>COVID-19 has raised four major challenges:<\/p>\n<p><b>\u00b7\u00a0<\/b><strong><b>Economic:\u00a0<\/b><\/strong>The economic activities\u00a0are not sufficient to handle such large workforce.<\/p>\n<p><b>\u00b7\u00a0<\/b><strong><b>Health:\u00a0<\/b><\/strong>There are lack of health infrastructures to handle such large populations.<\/p>\n<p><b>\u00b7\u00a0<\/b><strong><b>Welfare\/livelihood:\u00a0<\/b><\/strong>The livelihoods of the people hampered due to low economic activities which led to reverse migrations.<\/p>\n<p><b>\u00b7\u00a0<\/b><strong><b>Resource\u00a0<\/b><\/strong><strong><b>mobilisation<\/b><\/strong><strong><b>:\u00a0<\/b><\/strong>There are inadequate resource availability for the local bodies\u00a0to handle such crisis.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><strong><b>Challenges for local governance:<\/b><\/strong><\/p>\n<ul>\n<li><b><\/b><strong><b>Paradigm shift:\u00a0<\/b><\/strong>The\u00a0COVID-19\u00a0demands a shift in the delivery of health care\u00a0with advanced technology.<\/li>\n<li><b><\/b><strong><b>No clarity:\u00a0<\/b><\/strong>In the assignment of functions, functionaries and financial responsibilities to local governments.<\/li>\n<li><b><\/b><strong><b>Low recognition:\u00a0<\/b><\/strong>The critical role of local governments\u00a0needs\u00a0to be\u00a0recognisedby all.\u00a0Such as Kerala through a &#8216;big bang&#8217; approach implemented a significant fiscal decentralization program and then built the capacity of its local governments.<\/li>\n<\/ul>\n<p>These challenges\u00a0have to\u00a0be addressed by all tiers of government in the federal polity. The local government\u2019s own revenue is critical for their empowerment.<\/p>\n<p><strong><b>Suggestions for Resource\u00a0<\/b><\/strong><strong><b>mobilisation<\/b><\/strong><strong><b>:<\/b><\/strong><\/p>\n<ul>\n<li><b><\/b><strong><b>Local finance:<\/b><\/strong>\n<ul style=\"list-style-type: circle;\">\n<li>Property tax collection with appropriate exemptions should be a compulsory levy and preferably must cover land.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<table>\n<tbody>\n<tr>\n<td width=\"601\"><strong><b>Facts:\u00a0<\/b><\/strong><\/p>\n<p>\u00b7\u00a0The Economic Survey 2017-18 points out that urban local governments, or ULGs, generate about 44% of their revenue from their own sources as against only 5% by rural local governments, or RLGs.<\/p>\n<p>\u00b7\u00a0Per capita own revenue collected by ULGs is about 3% of urban per capita income while the corresponding figure is only 0.1% for RLGs.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<ul style=\"list-style-type: circle;\">\n<li style=\"list-style-type: none;\">\n<ul style=\"list-style-type: circle;\">\n<li><b><\/b><strong><b>Fiscal illusion:\u00a0<\/b><\/strong>There is a big gap between tax potential and actual collection which results in underperformance.\u00a0In States such as UP, Bihar and Jharkhand, local tax collection at the panchayat level is almost nil.<\/li>\n<li>All States should take steps to enhance and\u00a0rationalisethe property tax regime.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<table>\n<tbody>\n<tr>\n<td width=\"601\"><strong><b>Facts:<\/b><\/strong><\/p>\n<p>\u00b7\u00a0A recent study shows that the share of property tax in GDP has been declining since 2002-03.<\/p>\n<p>\u00b7\u00a0The share of property tax in India in 2017-18 is only 0.14% of GDP as against 2.1% in the OECD.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul style=\"list-style-type: circle;\">\n<li>Land\u00a0monetisationand betterment levy may be tried in the context of COVID-19 in India.<\/li>\n<li><b><\/b><strong><b>Issuance of Bonds:<\/b><\/strong>Municipalities and suburban panchayats can issue a corona containment bond for a period of say 10 years on a coupon rate below market rate but significantly above the reverse repo rate to attract banks.<\/li>\n<\/ul>\n<\/li>\n<li><b><\/b><strong><b>MPLAD fund scheme:<\/b><\/strong><\/li>\n<li style=\"list-style-type: none;\">\n<ul style=\"list-style-type: circle;\">\n<li>MPLADs were earmarked for local area development and must be assigned to local governments\u00a0like\u00a0to panchayats\u00a0on the basis ofwell-defined criteria.<\/li>\n<\/ul>\n<\/li>\n<li><b><\/b><strong><b>The Fifteenth Finance Commission (FFC):\u00a0<\/b><\/strong><\/li>\n<\/ul>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul style=\"list-style-type: circle;\">\n<li><b><\/b><strong><b>A special COVID-19 containment grant to the LGs:<\/b><\/strong>By the FFC to be distributed\u00a0on the basis of\u00a0SFC-laid criteria.<\/li>\n<li><b><\/b><strong><b>Low increase:\u00a0<\/b><\/strong>The local government grant of \u20b990,000 crore for 2020-2021 by the FFC is only 3% higher than that recommended by the Fourteenth Finance Commission.\u00a0It should be increased to an appropriate level.<\/li>\n<li>The Building health infrastructure and disease control strategies at the local level should find mention in tranches of the packages announced by the government.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><strong><b>Way Forward<\/b><\/strong><\/p>\n<p>Strategies in tackling the COVID-19 crisis must include local governments being equipped and fiscally empowered.<\/p>\n<h3 class=\"note1\"><strong><b>3.Importance of E-Diplomacy in the time of COVID-19.<\/b><\/strong><\/h3>\n<p><strong><b>Source:\u00a0<\/b><\/strong><a href=\"https:\/\/www.thehindu.com\/opinion\/op-ed\/the-e-diplomacy-experiment\/article31781585.ece\"><strong><u><b>The Hindu<\/b><\/u><\/strong><\/a><\/p>\n<blockquote><p>Syllabus: GS 2-\u00a0\u00a0 Bilateral, regional and global groupings and agreements involving India and\/or affecting India\u2019s interests.<\/p><\/blockquote>\n<p><strong><b>Context:\u00a0<\/b><\/strong>The first India-Australia virtual leaders\u2019 summit held on June 4 and discussed issues ranging from military interoperability to jointly tackling COVID-19.<\/p>\n<p><strong><b>E-Diplomacy:<\/b><\/strong><\/p>\n<ul>\n<li><b><\/b><strong><b>Migration to online mediums:\u00a0<\/b><\/strong>The Nations have shifted to online mediums with video conference calls due to the dangers posed by COVID-19. It has compelled the traditionally glad-handing, backslapping and tourism-promoting art of summit diplomacy\u00a0to online summits.<\/li>\n<\/ul>\n<table>\n<tbody>\n<tr>\n<td width=\"312\"><strong><b>Advantages of E-summits:\u00a0<\/b><\/strong><\/p>\n<p>&nbsp;<\/td>\n<td width=\"312\"><strong><b>Disadvantages of E-summits:<\/b><\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"312\">\u00b7\u00a0Physically safer for leaders.<\/p>\n<p>\u00b7\u00a0Time\u00a0saving.<\/p>\n<p>\u00b7\u00a0Low economic costs on\u00a0events with less\u00a0spent\u00a0on physical journeys.<\/p>\n<p>&nbsp;<\/td>\n<td width=\"312\"><b>\u00b7\u00a0<\/b><strong><b>Doubts:\u00a0<\/b><\/strong>Without all the protocols and structured dialogues of summits, it is doubtful if major breakthroughs or deals requiring direct intervention of leaders can happen.<\/p>\n<p><b>\u00b7\u00a0<\/b><strong><b>Less productive:\u00a0<\/b><\/strong>In terms of deliverables, especially where crucial sticking points such as India-China issues on borders.<\/p>\n<p><b>\u00b7\u00a0<\/b><strong><b>Broader political goals:\u00a0<\/b><\/strong>Online summits may not satisfy the broader political goals and bigger objectives that heads of state carry with them.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><strong><b>In pre-COVID-19 times<\/b><\/strong>: Summit venues used to be thoroughly\u00a0sanitised\u00a0and debugged to prevent sensitive foreign policy content from being spied upon or leaked.<\/p>\n<p>Now with many countries moving towards digital summits and E-diplomacy, it will bring the technological challenge for them.<\/p>\n<p><strong><b>Cyber Security Challenge to E-Diplomacy:<\/b><\/strong><\/p>\n<ul>\n<li><b><\/b><strong><b>Hacking:\u00a0<\/b><\/strong>It is riskier and could be subject to hacking of classified content.<\/li>\n<li>This could reduce the spontaneity of their conversations.<\/li>\n<li><b><\/b><strong><b>Important issues:\u00a0<\/b><\/strong>It is arguable whether new ideas or proposals which require geo-strategic alignments can be discussed in e-summits.<\/li>\n<\/ul>\n<p><strong><b>India\u2019s efforts at E-Diplomacy:<\/b><\/strong><\/p>\n<ul>\n<li><b><\/b><strong><b>India\u2019s multilateral \u2018e-diplomacy\u2019 since the COVID-19 outbreak:<\/b><\/strong><\/li>\n<li style=\"list-style-type: none;\">\n<ul style=\"list-style-type: circle;\">\n<li>The PM convened the SAARC leaders\u2019 video conference.<\/li>\n<li>Joined the Extraordinary G20 Leaders\u2019 Summit via video link.<\/li>\n<li>Made his maiden appearance at the NAM virtual summit.<\/li>\n<\/ul>\n<\/li>\n<li><b><\/b><strong><b>Elaborate summit with Australia:<\/b><\/strong><\/li>\n<\/ul>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul style=\"list-style-type: circle;\">\n<li>It involved the exchange of multiple agreements such as the two countries upgrading their relations to a \u2018comprehensive strategic partnership\u2019.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><strong><b>Way Forward<\/b><\/strong><\/p>\n<p>Despite the Cyber security and productivity concerns e-summits must go on as diplomacy.<\/p>\n<h3 class=\"note1\"><strong><b>4.Fiscal Deficit\u00a0\u2013\u00a0Direct\u00a0Monetization\u00a0as possible solution<\/b><\/strong><\/h3>\n<p><strong><b>Source\u00a0<\/b><\/strong>\u2013\u00a0<a href=\"https:\/\/www.thehindu.com\/opinion\/lead\/whos-afraid-of-monetisation-of-the-deficit\/article31782093.ece\"><u>The Hindu<\/u><\/a><\/p>\n<blockquote><p><strong><b>Syllabus\u00a0<\/b><\/strong>\u2013\u00a0GS 3 \u2013 Mobilization of resources for growth<\/p><\/blockquote>\n<p><strong><b>Context\u00a0<\/b><\/strong>\u2013 Recently rating agency Moody downgraded India from Baa2 rating to Baa3 rating<\/p>\n<p><strong><b>Reason for Downgrading<\/b><\/strong>\u00a0\u2013 Moody has cited\u00a0s<strong><b>lowing growth, financial sector weakness and rising debt\u00a0<\/b><\/strong>as the main reasons\u00a0for downgrading the ratings.<\/p>\n<ul>\n<li>Moody\u2019s estimation\u00a0of\u00a0Public debt to GDP ratio\u00a0is\u00a072% in 2020-2021.<\/li>\n<li>Non-Performing Assets in financial sector are over 9% of loan advances\u00a0in pre-corona India.<\/li>\n<li>Growth rate by\u00a0World Bank\u00a0has been projected at\u00a03.1% in FY22.<\/li>\n<\/ul>\n<p>Apart from the reasons cited by Moody\u2019s,\u00a0structural issues have been major contributor in the slowing growth rate.<\/p>\n<p><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-62259\" src=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2020\/06\/Picture2-10.png?resize=576%2C336&#038;ssl=1\" alt=\"\" width=\"576\" height=\"336\" srcset=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2020\/06\/Picture2-10.png?w=576&amp;ssl=1 576w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2020\/06\/Picture2-10.png?resize=300%2C175&amp;ssl=1 300w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2020\/06\/Picture2-10.png?resize=150%2C88&amp;ssl=1 150w\" sizes=\"auto, (max-width: 576px) 100vw, 576px\" \/><\/p>\n<p>Figure 1 \u2013 Structural issues in Indian Economy<\/p>\n<p><strong><b>Atma Nirbhar Mission<\/b><\/strong>\u00a0\u2013 Government\u00a0has introduced the Self-Reliant Mission to infuse Rs 20 lakhs crore in\u00a0economy.\u00a0This mission is aimed at resolving structural issues in all sectors on\u00a0economy.\u00a0This\u00a0infusion can be done either by\u00a0providing guarantees to bank or via deficit financing.<\/p>\n<p><strong><b>Need of monetizing the Fiscal Deficit\u00a0\u2013<\/b><\/strong>According to Keynesian economics theory, in any economy, the slowdown can be revived only by financing the fiscal deficit. The governments increased spending in turn leads to a virtuous cycle of growth.<\/p>\n<p><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-62260\" src=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2020\/06\/Picture3-9.png?resize=594%2C203&#038;ssl=1\" alt=\"\" width=\"594\" height=\"203\" srcset=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2020\/06\/Picture3-9.png?w=594&amp;ssl=1 594w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2020\/06\/Picture3-9.png?resize=300%2C103&amp;ssl=1 300w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2020\/06\/Picture3-9.png?resize=150%2C51&amp;ssl=1 150w\" sizes=\"auto, (max-width: 594px) 100vw, 594px\" \/><\/p>\n<p>Figure 2 \u2013 Virtuous cycle of growth<\/p>\n<p><strong><b>Methods of financing the deficit<\/b><\/strong><\/p>\n<ol>\n<li><strong><b>Borrowing by government<\/b><\/strong>&#8211; Government can borrow from internal sources as well as from external sources to finance its deficit. This however leads to crowding out effect and thus discourages investment by private sector.\u00a0It also raises the public debt to GDP ratio which in turn affects the rating done by rating agencies.<\/li>\n<li><strong><b>Printing Rupees\u00a0or direct monetization<\/b><\/strong>\u2013 Government, can get money printed by RBI in return of bonds issued by government. This although has inflationary effect on economy but a slowdown in economy can be uplifted with the short-term inflationary pressure.<\/li>\n<\/ol>\n<p><strong><b>Difference between OMO and direct monetization<\/b><\/strong>\u00a0&#8211;\u00a0Direct monetization is different from the \u201cindirect\u201d monetizing that RBI does when it conducts the Open\u00a0Market Operations (OMOs). In OMO, RBI\u00a0purchases bonds in the secondary market\u00a0and it does not include printing new currency.<\/p>\n<p><strong><b>Way Forward<\/b><\/strong>\u00a0\u2013\u00a0Controlling inflation with monetary policy while financing the deficit with direct monetization is the need of the hour to revive the economy hit hard by lockdown as well as structural issues.<\/p>\n<h3 class=\"note1\"><strong><b>5.Indian Navy\u00a0\u2013\u00a0The Third Pillar in our security establishment\u00a0<\/b><\/strong><\/h3>\n<p><strong><b>Sources<\/b><\/strong>\u00a0\u2013\u00a0<a href=\"https:\/\/www.thehindu.com\/opinion\/op-ed\/fighting-sea-blindness\/article31781576.ece\"><u>The Hindu<\/u><\/a><\/p>\n<blockquote><p><strong><b>Syllabus\u00a0<\/b><\/strong>\u2013\u00a0GS 3 &#8211;\u00a0Various Security forces and agencies and their mandate<\/p><\/blockquote>\n<p><strong><b>Context\u00a0<\/b><\/strong>\u2013 Uncertainty regarding\u00a0construction and commissioning of\u00a0third aircraft carrier in Indian Navy<\/p>\n<p><strong><b>Aircraft carrier in India and other countries\u00a0<\/b><\/strong><\/p>\n<p><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-62261\" src=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2020\/06\/Picture4-6.png?resize=579%2C216&#038;ssl=1\" alt=\"\" width=\"579\" height=\"216\" srcset=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2020\/06\/Picture4-6.png?w=579&amp;ssl=1 579w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2020\/06\/Picture4-6.png?resize=300%2C112&amp;ssl=1 300w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2020\/06\/Picture4-6.png?resize=150%2C56&amp;ssl=1 150w\" sizes=\"auto, (max-width: 579px) 100vw, 579px\" \/><\/p>\n<p>Figure 1- Comparison chart of number of aircraft carriers India, China and Pakistan have<\/p>\n<p><strong><b>Need of third aircraft carrier in India:<\/b><\/strong><\/p>\n<ol>\n<li><b><\/b><strong><b>Changing geopolitics in Indian Ocean<\/b><\/strong>\u2013 Indian Ocean region is deemed to become heartland of world\u2019s geopolitics in 21<sup>st<\/sup> This would require early preparedness which includes strengthening Indian Navy for better power projection.<\/li>\n<li><b><\/b><strong><b>Long gestation period\u00a0<\/b><\/strong>\u2013\u00a0Aircraft carriers need around 10 years from concept phase to commissioning phase. This requires foresight and strategic policy making which includes\u00a0estimation of needs and wants of a future global power like India.<\/li>\n<li><b><\/b><strong><b>China expanding its naval power<\/b><\/strong>\u2013 By 2030, the Chinese Navy will have around 6 aircraft carriers which are required for its objective of becoming global hegemony both in military and economy.<\/li>\n<li><strong><b>Trade via Sea Line of Communications<\/b><\/strong>\u00a0\u2013 97% of Trade in India happens via Sea line of communications which require better protection from conventional threats like Piracy and terrorism.<\/li>\n<li><b><\/b><strong><b>Long coastline<\/b><\/strong>\u2013 India has coastline of around ~7500km which is important source of country\u2019s economy in terms of trade, tourism, aquaculture, conservation of maritime biodiversity. This underlines the importance of better equipped Navy to tackle unforeseen crises.<\/li>\n<li><b><\/b><strong><b>Role played in previous wars<\/b><\/strong>\u2013 The Bangladesh War of 1971 was a strategic victory for India which was won because of combined efforts of three forces. It was Navy, however,\u00a0which played predominant role to create blockade for Pakistan with its prowess of powerful systems.<\/li>\n<\/ol>\n<p>Despite of the advantages third aircraft carrier offers to regional power like India, there has been argument against need of such carriers.<\/p>\n<p><strong><b>Argument against Aircraft Carrier<\/b><\/strong><\/p>\n<ol>\n<li><b><\/b><strong><b>Budget Constraint \u2013\u00a0<\/b><\/strong>Due to Corona pandemic and the slowdown in economic sectors, resource mobilisation for securing livelihood and strengthening health infrastructure is needed. This puts budgetary constraint on defence bill and construction of projects like INS\u00a0Vishal\u00a0will need to be postponed for now.<\/li>\n<li><b><\/b><strong><b>Limited role of Navy in historical wars \u2013\u00a0<\/b><\/strong>Among the major wars India has fought in its neighbourhood\u00a0in 1948, 1962, 1965 and 1971 Navy played a limited role as all were predominantly land border based wars. This requires strengthening the Army and Air Force on urgent basis.<\/li>\n<li><b><\/b><strong><b>Border disputes \u2013<\/b><\/strong>India has land border based disputes with Pakistan along LOC and with China along LAC. Budgetary resources are, hence, needed for Land border management and modernisation of related ammunition and forces.<\/li>\n<li><b><\/b><strong><b>Aircraft Carriers need Aircrafts and helicopters<\/b><\/strong>\u2013 Indian Air force does not have required squadron strength to fight a\u00a0two-front\u00a0war. It currently has 33 squadrons when requires number is 42 squadron. This indicates lack of fighter aircrafts, helicopters needed for strong Air Force. Navy,\u00a0if will have third aircraft carrier,\u00a0will need more such aircrafts\u00a0to be deployed on the upcoming carriers.<\/li>\n<\/ol>\n<p><strong><b>Way Forward<\/b><\/strong>\u00a0\u2013 The increasing significance of Indian Ocean Region in this century demands a\u00a0strong\u00a0Indian Navy which can provide\u00a0not only regional security\u00a0to its littoral neighbours but\u00a0also participate with other global power in securing the peace.<\/p>\n<hr \/>\n<p><a name=\"link1\"><\/a><\/p>\n<h3 class=\"note1\">9 PM for Preliminary examination<\/h3>\n<p>Click on &#8220;Factly articles for 9th June 2020&#8221;<\/p>\n<p>https:\/\/factly.forumias.com\/factly-articles-for-9th-june-2020\/<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Read out 9 PM brief for all your current affairs needs.<\/p>\n","protected":false},"author":61,"featured_media":61408,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[14,9],"tags":[75,1095,1075,79,1060,90],"class_list":["post-62248","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-9-pm-brief","category-public","tag-current-affairs","tag-forumias-current-affaris","tag-free-current-affairs","tag-free-ias-notes","tag-free-ias-preparation","tag-free-study-material","entry"],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2020\/05\/9-pm-brief-1.gif?fit=2296%2C450&ssl=1","views":{"total":0,"cached_at":1700804420,"cached_date":1704940715},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/62248","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=62248"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/62248\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media\/61408"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=62248"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=62248"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=62248"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}