Front Page / NATIONAL [The Hindu]
[1] Met dept. expects a ‘normal’ monsoon but doubts loom
[2] SC questions Army’s silence
[3] Respect for national flag, anthem non-negotiable, Centre tells SC
[4] Modi, McMaster discuss security
[5] India opposes ‘genocide’ charge
[6] New data safety regime from TRAI will beready by Deepavali
Editorial/OPINION [The Hindu]
[1] Lonely and disinterested
[2] Lines of defence
[3] Equity in debt
Economy [The Hindu]
[1] RBI red flags banks’ telecom exposure
[2] Railways seek aid for unviable routes
[3] ‘Common duct policy’ soon
Indian Express
[1] Boom, bust: Current buoyancy in global markets is misleading
Live Mint
[1] No radical change in national health policy
The Hindu
Front Page / NATIONAL
[1] Met dept. expects a ‘normal’ monsoon but doubts loom
Context
Threat of El Nino phenomenon adds element of uncertainty
What has happened?
- India is likely to get ‘normal’ monsoon rains, according to the first official forecast of the season by the India Meteorological Department (IMD)
Rains are likely to be 96% of the 50-year average of 89cm for the monsoon season of June to September - They are expected to fan out favourably and “help agriculture.”
- There is, however, a significant element of uncertainty in this forecast
Uncertainty still
- For one, there’s the looming threat of El Nino
- Secondly, the IMD has adopted a new weather model this year, and it is still a work-in-progress
- Every number forecast by the IMD has a built-in 5% error margin
Earlier
India saw drought years in 2014 and 2015. As for 2016, it received 3% less than the 89 cm average, despite an IMD forecast of ‘above normal’ rains
[2] SC questions Army’s silence
Context
Bench cites judicial probe report in 2004 Manorama murder case in Manipur
What has happened?
The Supreme Court asked the Army why it chose to maintain silence despite Commissions of Inquiry set up by the Manipur government over alleged rape and murder against its personnel in Manipur during insurgency
Backdrop
- Murder of ThangjamManorama, a Manipuri girl, in 2004
- The judicial inquiry report into the case alleged she had suffered “brutal and merciless torture” by a 17 Assam Rifles team
Indian Army
An internal enquiry into the Manorama incident had revealed some “violations of laid-down procedures
SC Counters
Then, why the Army agreed to pay Rs. 10 lakh compensation, as ordered by the Supreme Court, for a mere violation of procedure
Army not averse to enquiry
The Army counsel submitted that the operation conducted in the Manorama incident was based on reliable intelligence and the Army is not averse to an enquiry by a high-ranking officer
SC to Manipur Government
The Courtalso referred to the suicide of a 15-year-old girl in 2003 after she was allegedly raped by two Army personnel. “You are the loco parentis. You should have taken up these cases with the Army at every juncture. Was it a tacit understanding between you two or a state of helplessness,” the Bench asked Manipur government counsel
Loco Parentis
Latin for “in the place of a parent” refers to the legal responsibility of a person or organization to take on some of the functions and responsibilities of a parent
[3] Respect for national flag, anthem non-negotiable, Centre tells SC
Context
Court exempts more categories of persons with disabilities
History
Athree-judge Benchmodified the court’s November 30, 2016 order, making it compulsory for all to stand up in cinema halls when the national anthem is played
Backdrop
- At the centre of the legal battle is a petition filed by Shyam Narayan Chouksey in October 2016 It wants Parliament to apply its mind and define ‘respect’ for the national anthem and flag under Article 51A (a) of the Constitution
- If not, it alternatively wants the Supreme Court to issue a mandamus to the government to frame guidelines
Mandamus: A judicial writ issued as a command to an inferior court or ordering a person to perform a public or statutory duty
What has happened?
- Even as the Centre asserted that respect for the national anthem and flag is “a matter of national pride and non-negotiable”, the Supreme Court questioned the need to expressively define ‘respect’ for the two national symbols when such a feeling of reverence is already inherent in the Constitution
- Exempted Categories:The court exempted persons “who are wheelchair users, those with autism, persons suffering from cerebral palsy, multiple disabilities, Parkinson’s, multiple sclerosis, leprosy cured, muscular dystrophy and deaf and blind” from the ambit of its November 30 order
- Earlier:In December 2016, the court had exempted physically challenged persons from standing up for the anthem
Define respect
The Government
The national flag and the national anthem is a matter of national pride. It is non-negotiable. It is unfortunate that somebody had to move the court seeking respect for the national flag, anthem
Make it compulsory in Parliament
Meanwhile, the SC issued notice to the Centre on a petition filed by advocate Ashwini Upadhyay to make singing or rendering of national anthem and song compulsory in Parliament, Assemblies, public offices and all schools.
[4] Modi, McMaster discuss security
Context
Afghanistan, West Asia and Korea figure in talks, but date of PM’s U.S. visit not announced
What has happened?
Prime Minister Narendra Modi held talks on Afghanistan, the West Asian region and the Korean peninsula with the visiting U.S. National Security Adviser, Lt. General H.R. McMaster
Lt. Gen. McMaster, the first high official of the administration of U.S. President Donald Trump to visit India, met Mr. Modi after completing his trips to Afghanistan and Pakistan
Challenge of terrorism
“Lt. Gen. H.R. McMaster shared his perspective with Prime Minister on the security situation in the extended region, including in Afghanistan, West Asia and the DPRK [Democratic People’s Republic of Korea]
Exchanged views on how both countries can work together to effectively address the challenge of terrorism and to advance regional peace, security and stability
No Date of PM’s US visit
The meeting, however, did not yield an announcement of a date for Mr. Modi’s visit to Washington
Major defence partner
A U.S. Embassy statement said that the bilateral talks “emphasised the importance of the U.S.-India strategic relationship and reaffirmed India’s designation as a major defence partner”.
The two sides discussed a range of bilateral and regional issues, including their shared interest in increasing defence and counter-terrorism cooperation, it said.
[5] India opposes ‘genocide’ charge
Context
Indian defence Minister tells Canadian Defence Minister that the charge by provincial parliament has caused disquiet(a feeling of worry or unease)
What has happened?
India has registered a strong note of protest before the visiting Canadian Defence Minister, Harjit Singh Sajjan, against a provincial Assembly legislation which had accused India of “genocide” in the events of 1984
India: Unwarranted comment
- An unneeded comment on India’s internal situation
- It is not in the spirit of India-Canada relations and did not help in furthering the relationship
Canada: Due to Local Elections
- It was a private member’s Bill and moved in the context of the local elections
- It did not reflect the position of the Canadian government
Backdrop
- HarinderMalhi, Member of Provincial Parliament (MPP) from Brampton-Springdale, near Toronto, moved a private member’s motion in the Ontario Assembly
- The motion was passed after debate with 34 members voting in favour and five against of the total strength of 107
- Introducing the Bill, Ms. Malhi had said, “The Legislative Assembly of Ontario should condemn all forms of communal violence, hatred, hostility, prejudice, racism and intolerance in India and anywhere else in the world, including the 1984 genocide perpetrated against Sikhs throughout India, and call on all sides to embrace truth, justice and reconciliation
Deepen Defence Ties
In their discussions, the two ministers had agreed to deepen the defence cooperation
[6] New data safety regime from TRAI will beready by Deepavali
Context
Framework to ensure protection online, Centre tells SC
What has happened?
The Centre informed a Constitution Bench of the Supreme Court that the Telecom Regulatory Authority of India (TRAI) is working on a new regulatory regime to ensure online data protection, and it will be ready by Deepavali
Why?
Data Protection: With online transactions and presence increasing by the day, data protection needs to be fortified
Need for Online Privacy: Example, The Right to be forgotten
The AG explained the need for online privacy in the light of ‘right to be forgotten’ of an individual
- A person commits a minor felony and is punished at the age of 20. But if a search is done on him in the Internet, the information about this felony is the first to pop up on the screen despite the fact that in the real world it is long past and forgotten
- It deals with the person’s right to wipe out his past demeanours for which he has already suffered punishment
- This right, also called the ‘right to be erased’, is one of the major casualties in the Internet age, it is practised in the U.K., the U.S. and the E.U.
Backdrop
The debate was part of a Constitution Bench hearing for a declaration that a 2016 policy of instant messaging app – WhatsApp – to give Facebook access to information and personal details shared by millions of its users was a violation of their privacy and free speech.
What Now?
The Bench scheduled the next hearing by April 24
Editorial/OPINION
[1] Lonely and disinterested
Context
Excess focus on bilateralism is leaving India isolated in its larger neighbourhood
Growing Influence of China
- China is steadily increasing its geostrategic presence in South, Central and West Asia
- There is a China-Russia-Pakistan axis on the rise in Southern Asia
China and Russia closer
China and Russia are revelling in a new-found rapprochement (especially in international affairs) an establishment or resumption of harmonious relations)and aim to fill the geopolitical vacuum bound to be created by the U.S. withdrawal from the region
Pakistan
A retired Pakistan army chief is all set to take over as the first Commander-in-Chief of the Saudi-backed Islamic Military Alliance (IMA)
China-Russia-Pakistan axis
History: Russia not close with China and Pakistan
- China and the Soviet Union weren’t the best of friends during the Cold War, nor did they have a great relationship in the post-Soviet days
- Pakistan and the Soviet Union were Cold War rivals, and Russia did not, until recently, share a close relationship with Pakistan
Ganging up
- All that is changing now, with them ganging up to undo American dominance in the region, among other things
- The Afghan reconciliation process is a major focus of this new partnership
Might Affect Indian Influence
Clearly, this new axis of a resurgent Russia, ambitious China and opportunistic Pakistan, in combination with other related developments, will not only diminish U.S. power in the region but could also potentially constrain Indian influence
Russian Sale of Advanced weaponry to China
Sino-Russian relations, through joint military exercises and the Russian sale of advanced weaponry to China, for instance, could hurt India’s strategic options globally
China increasing engagement regionally: OBOR
Having committed huge sums to the OBOR project, Beijing realises that some of its inherent political risks should be reduced by engaging in regional conflict resolution processes, a lesson well learnt from the playbook of great power diplomacy
West Asia
Both Vetoed U.S.-sponsored sanctions against Syria
Having vetoed U.S.-sponsored sanctions against Syria, they believe that it is necessary to nudge the warring Syrian factions to negotiate
Beijing Reaching Out
Beijing has also been reaching out to and balancing the various adversaries in the region such as Israel, Saudi Arabia and even Iran, and increasingly talking the language of reconciliation
India buckled under US Pressure, China didn’t
While New Delhi buckled under pressure from Washington to take sides on Iran, Beijing refused to do so
South Asia: Easy for China to Exert Dominance
Smaller South Asian Countries Need China
Smaller countries in the region see it as an infrastructure provider, with deep pockets and without the usual moral science lessons
Bangladesh likely to sign OBOR
Bangladesh, one of India’s close allies in the region, is likely to attend the OBOR summit in May and may even sign up for it
Afghan reconciliation
Chinese interest in Afghan reconciliation stems not only from a security/terrorism angle but also more significantly to ensure the sustainability of OBOR given its importance in providing access to Central Asia
Russian U-turns
Make no mistake, Russia is looking beyond a reluctant India in South Asia
Forging ties with Islamabad
Ignoring Indian sensitivities, Moscow has gone ahead with forging strategic ties with Islamabad: from lifting the arms embargo, selling weaponry, discussing the future of Afghanistan, to joint military exercises
Stand on Kashmir
When Russia formally joins OBOR, it will have indirectly taken a position on Kashmir which is not necessarily in keeping with the Indian stand on the issue
Pragmatic Stand on South Asian Terrorism
If the Russian envoy’s remarks at the Heart of Asia conference in December are anything to go by, Moscow is also taking a pragmatic stand on terrorism in South Asia
The Pakistan pivot
The ‘global outcast’, Pakistan is today an inevitable lynchpin of Southern Asian geopolitics
American retreat from Afghanistan
- The outcomes of the Afghan conflict will largely be determined by Rawalpindi now after American retreat from Afghanistan
- This fits well with the Chinese and Russian regional grand strategies Today, Moscow and Beijing are actively seeking to help Pakistan
The IMA ( Islamic Military Alliance )
While the IMA is still in its infancy, we need to look closely at its potential
Will it emerge, even though it is at a moment an overwhelmingly Sunni sectarian force, as a potent regional military alliance in the years to come? What role would Pakistan play in this ‘Islamic NATO’? What implications would it have for India?
Head-in-the-sand approach
New Delhi Sleeping
Amidst such geopolitical reshaping of the region, New Delhi has done precious little to counter them or to propose a collective regional future
SAARC in tatters
The South Asian Association for Regional Cooperation (SAARC), which should have been the central plank of India’s ‘neighbourhood first’ policy, is in doldrums today
India continues to prefer Unilateralism
- Having jettisoned SAARC and unwilling to promote other regional initiatives, institutional or issue-based, India continues to prefer unilateralism towards neighbours
- The shortcomings of bilateralism in a world hungry for institutions and structures should be evident to us
Reactive Policy
The External Affairs Ministry’s reactive diplomacy is unable to see the wood for the trees in its relations with Beijing
Issues
How does, for instance, designating Masood Azhar a terrorist become India’s core interest vis-à-vis China? Should we allow a terror-monger to determine our relationship with one of our biggest trading partners?
CPEC
India should find a via media with China on the issue rather than publicly dismiss the initiative
OBOR
Given that OBOR is a futuristic mega-project, its benefits as well as cross-national and inter-continental linkages, all of which would eventually bypass India, will only become clearer in the years to come
Conclusion
In short then, a few decades down the line, India could end up far more isolated: the logical conclusion of an inward-looking political class
It’s time New Delhi focussed on the big picture and avoided puritanical positions while addressing the emerging fault lines on the global geopolitical landscape
[2]Lines of defence
Context
The inclusion of paper audit trails to the EVMs is costly but perhaps unavoidable
What has happened?
In the face of extreme and unreasonable complaints against Electronic Voting Machines by a number of political parties, the Election Commission perhaps had no choice but to have the working of the machines corroborated (confirm) by a paper audit trail
Costly Affair
- To have such a facility ready for all constituencies by the 2019 Lok Sabha election is expensive, will require atleast 1 Lakh VVPAT machines (an estimated Rs. 3,174 crore)
- So request to the Law Ministry to release funds for the procurement of voter-verifiable paper audit trail (VVPAT) machines for the 2019 Lok Sabha election
Couldn’t have Ignored
It clearly became increasingly difficult for it to ignore the clutch of parties that joined the chorus, some demanding a return to paper ballots
EVMs Foolproof
The EC has repeatedly assured voters that there are enough procedural and technical safeguards to prevent large-scale tampering or manipulation of EVMs
Model 2 Machines
Since 2006, elections have witnessed the use of upgraded EVMs — Model 2 machines, with security features such as dynamic coding of key codes on ballot units and their transfer as messages to the control unit in an encrypted manner
EVMs feature encoded software that is burnt one-time on to programmable chips, enabling them to be used as stand-alone machines rather than computer-connected units, thus preventing any hacking by remote devices
Model 3 Machines
Model 3 machines produced after 2013 have additional features such as tamper detection
Other Measures
The EC has laid down procedural rules of locking and storing EVMs before and after polling, besides functional checks and tests in the presence of representatives of political parties
VVPAT
The addition of the VVPAT machine to the process is to allow for cross-checking of EVM resultsthrough a paper audit, completing another layer of accountability to the indigenously produced machines (only the microchip is manufactured outside the country with the machine language embedded on it)
Studies Show Contrary
Contrary to claims about tampering, studies show the introduction of EVMs has resulted in a drastic reduction in electoral fraud (rigging, stuffing of ballot boxes, etc.) and allowed for greater voter participation
Reverting to Old Paper Ballot System Regressive
Since reverting to the older paper ballot system will be regressive, the only option in the face of the protests is to have a back-up in the form of a paper trail
[3] Equity in debt
Context
The advice of the expert committee to review the Fiscal Responsibility and Budget Management (FRBM) Act of 2003 requires attention, given India’s track record
What has happened?
- The expert panel’s recommendation to review the fiscal responsibility law is timely
- Excessive and unsustainable borrowing by the government is obviously perverse as it entails a cost on future generations while crowding out private investment
Fiscal Irresponsibility: happened in the past
- In the past, fiscal irresponsibility has cost jobs, spiked inflation, put the currency in a tailspin and even brought the country to the brink of a default
- The possibility of default may have resulted in the liberalisation of the economy in 1991, but the key trigger was irrational public spending on borrowed money in the late-1980s
FRBM Law
The FRBM law was enacted to ‘limit the government’s borrowing authority’ under Article 268 of the Constitution
Fiscal Deficit Target
The target to limit the fiscal deficit to 3% of GDP (by 2009) was abandoned after the 2008 global financial crisis as a liberal stimulus reversed the gains in the fiscal space, creating fresh macro-level instability. The FRBM Act’s deficit target is now only likely to be met next year
- Pragmatic Approach:The committee’s proposal to maintain the 3% target till 2019-20 before aiming for further reduction is pragmatic, as the ‘extraordinary and unanticipated domestic development’ of demonetisation happened during its tenure
- Demonetisation: Such an event, the committee has said, could trigger an escape clause from fixed fiscal targets in its proposed rule-based framework
- The panel has called for paring India’s cumulative public debt as a proportion to GDP to 60% by 2023 — from around 68% at present
- The Finance Minister has committed to the 3% target for the next two years, from the 3.2% target for 2017-18
Conclusion
- A clear fiscal policy framework in tandem with the monetary policy framework already adopted could act as a powerful signal of commitment to macroeconomic stability
- The Centre must swiftly take a call on the panel’s recommendations — including for a new debt and fiscal responsibility law, and the creation of a Fiscal Council with independent experts that could sit in judgment on the need for deviations from targets
- It is equally critical that States are brought on board, as the 60% debt target includes 20% on their account
Economy
[1] RBI red flags banks’ telecom exposure
Context
Lenders asked to increase standard provision on loans
What has happened?
The Reserve Bank of India (RBI) has raised a red flag over banks’ loans to telecom players and asked the lenders to increase their standard asset provisioning more than what is prescribed so that they can built ‘necessary resilience.’
Why?
Stressed Telecom Sector:
Interest coverage ratio of less than one
- Interest coverage ratio of less than one means the company’s EBIDTA (Earnings Before Interest, Taxes, Depreciation and Amortization) is not sufficient to repay interest, let alone principal.
- Telecom players are reeling under a huge debt — estimated to be about Rs. 4.2 lakh crore — amid a tariff war and a consolidation among some of the players
Sector review
- Banks have to make 0.4% provision for standard advances
- Banks have also been asked to closely monitor their exposure to the sector
- RBI governor had earlier said five sectors, including telecom, contributed to 61% of the stress in the banking system
- While the industry’s market cap is shrinking, the return on capital deployed has dipped to low single-digit return in markets like India, making it unviable.
Play golf
Airtel chairman had said that return on investment has been falling sharply
NPAs Increase
Their gross non-performing asset rate rose to 9.1% in September 2016, from 5.1% a year ago
Make Provisions for other sectors too
- RBI has also asked banks to increase standard asset provision in other stressed sectors.
- Banks have been asked to put in place a board–approved policy for making provisions for standard assets at rates higher than the regulatory minimum, based on the evaluation of risk and stress in various sectors
Financial oxygen
Recommendations from TRAI such as reducing SUC (spectrum usage charges) fees to 1%, reducing licence fee payment to 3% and adopting revised definition of adjusted gross revenue
[2] Railways seek aid for unviable routes
Context
Finance Ministry used to subsidise losses on operating strategic rail routes prior to merger of budgets
What has happened?
The Railway Ministry has sought compensation for operating railway lines of strategic and national importance — a practice discontinued following the merger of Railway and Union Budgets
Proposal
Sent a proposal for approval of the Union Cabinet to reimburse operational losses on:
- National projects
- Projects of national importance
- Uneconomic branch lines
- Border area projects and all strategic lines
Finance Ministry Against
- Every year, the Indian Railways used to get subsidy from the Finance Ministry for losses incurred on railway operations on strategic lines
- After the Budget merger, the Finance Ministry had discontinued the practice of providing annual subsidy to the Railways for operating loss-making strategic routes as the Railways was no longer required to pay an annual dividend
Standing Committees Report
Standing Committee on Railways and Estimates Committee — recommended that the Finance Ministry should continue compensating the Railways for losses in operating strategic lines
Reimbursement to Railways Justifiable
Nation-building
Considering the role of Railways in nation building, reimbursement to Railways on their operating losses on strategic lines is justifiable, the Standing Committee on Railways said in a report
Development of Social & Backward Region
As these lines mainly cater to defence movements on border areas and development of social and backward region, the Committee recommends that reimbursement of operational losses on strategic lines and railway lines in hilly, coastal and backward areas should be continued and desires the Ministry of Railways to pursue the matter with Ministry of Finance in this regard
Helps in Relief
The panel felt that compensation helped the Railways in providing relief towards “socially desirable projects” which are usually loss-making projects
Data
The subsidy provided to the Indian Railways by Finance Ministry for non-profitable routes stood at Rs. 4,024 crore and Rs. 3,723 crore in 2014-15 and 2015-16 respectively. However, in 2016-17, the Railways had budgeted subsidy of Rs. 4,301 crore on unviable routes which it didn’t receive from the Finance Ministry as its annual dividend was waived off
Estimates Committee
The Estimates Committee, in its report on Structural Changes in Union Budget had also said that the Railways should “continue to get reimbursement of losses on operation of strategic lines.”
[3] ‘Common duct policy’ soon
Context
To reduce operational costs and frequent digging of roads
What has happened?
- The Centre is likely to soon come out with a new policy under which a common duct will be laid across a city and service providers such as telcos and digital TV players can lease these ducts to pass their fibre through it to offer services to consumers
- A common duct will be created for about 20 years
- Once the duct is made, no service provider will be allowed to dig the road
Why?
Any service provider who enters a city digs up the city, so will remove issues related to right of way
‘Proof of concept’
Currently a proof of concept underway in Jharkhand… At the end of the exercise, should be able to come to a conclusion on whether such a proposal is replicable in other larger and smaller cities. Based on experience in Jharkhand, should be able to give a proposal to the government
Indian Express
[1] Boom, bust: Current buoyancy in global markets is misleading
Indian Express
Context
Structural flaws have not been corrected, economic nationalism is surging and we could be heading towards an economic malaise
On the Rise
- Gobal equities have been surging, repeatedly setting new highs, and capital has been rushing back to emerging market assets
- India received $9 billion of foreign portfolio inflows in March alone — the highest monthly portfolio inflow on record
What explains this swing from depressive to manic behaviour?
- Nominal GDP growing by 6 per cent (annualised) for a second successive quarter — a significant jump over the last two years
- Global manufacturing growth is finally on the surge, amidst tantalising signs that global business equipment spending is gaining steam
- Advanced economies — reliant thus far on just consumption growth — have suddenly found a second engine of growth: Business spending
- Despite the growth lift, markets remain relatively sanguine (optimistic) about global inflation as oil prices are expected to be capped by the impressive supply response from shale
But Hold On
The global economy is experiencing a cyclical lift But we could be bouncing towards a malaise (discomfort). The inconvenient truth is that the underlying fundamentals have not changed
US: High Inflation
In the US, for example, revealed potential growth — the sum of labour force participation and productivity growth — has fallen to an abysmal 1.1 per cent in the last three years
For an economy that is near full employment, growth much stronger than this will simply elicit higher inflation and a faster hiking cycle from the US Federal Reserve
Europe
Europe is healing but is peppered with political risk in the coming year
China
China has stabilised but at the cost of much-needed re-balancing
India
Many emerging markets —India included — need to undergo a painful deleveraging and asset resolution process
Economic Nationalism
Global risks have risen under the radar as economic nationalism becomes more pervasive around the world:
Tightening of H1-B visas and its impact on India
BAT
- The BAT is essentially a large tariff on imports into the US and would dramatically accentuate recent de-globalisation trends
- It would also result in (potentially significant) pressure on the US dollar to appreciate, thereby creating innumerable complications for policymakers in emerging markets, who will be faced with sharp depreciation pressures of their currencies
Trade Protectionism: US
- The resulting price pressures would likely force the Fed to normalise at a faster pace
- The growth-impinging fallout of more rapid normalisation could simply fuel more economic protectionism and nationalism
- Could get stuck in a self-reinforcing bad equilibrium
Worry for India:
India’s exports to GDP have almost doubled over the last 15 years, from 12 per cent of GDP in 2000 to 20 per cent of GDP currently, having peaked at 25 per cent in 2013
Exports
With exports making up 20 per cent of GDP, even if they were to grow at 5 per cent (twice the level of the last five years), instead of the 18 per cent growth in 2003-2008, we would need to deduct a full two percentage points from the 9 per cent growth during that period
Exports: Sensitive to Global Growth
- The bulk of India’s exports to the US are engineering goods, pharmaceuticals and IT services
- Given the high sensitivity of these sectors to the business cycle, any reduction in imports from the US — either through lower growth or increased protectionism — could disproportionally impact India’s exports
Conclusion
Easy to get carried away in the current environment
We cannot let a transient, cyclical lift be mistaken for underlying structural improvements
Live Mint
[1] No radical change in national health policy
Context
The 2017 national health policy document continues to be an extension of the previous two such policies (1983 and 2002)
NHP 2002
NHP 2002 also spoke about “enhanced healthcare spending” and “restructuring of the national public health initiatives” to achieve more “equitable access” to healthcare
No fundamental Right
NHP 2017 also dropped the proposal of making health a fundamental right
Positives of NHP, 2017
- Focus on Lifestyle Diseases: First time such a national policy document has recognized the shifting epidemiology of diseases, and put special focus on lifestyle diseases such as cardiovascular disease, cancer, diabetes, along with communicable diseases
- Primary HealthCare: Intent to make primary healthcare services more comprehensive and widen their net: Widening the net of primary healthcare services will enable coverage of a larger section of people through these services, and reduce the burden on district hospitals.
Healthcare Spending
Despite several years of strong economic growth, government spending on healthcare in India has only managed to touch 1.15% of gross domestic product (GDP)
Compared to this, India spends around 2.4% of its GDP on defence
Global Evidence
Global evidence on health spending shows that unless a country spends at least 5-6% of its GDP on health, with government expenditure being a major part, basic healthcare needs are seldom met
Unrealistic Targets
- NHP 2017 again lays down a modest target of reaching public health expenditure of 2.5% of GDP by 2025
- The policy document also targets bringing about an increase in the use of public health facilities by 50% from current levels by 2025 and making two beds available per 1,000 population
- A target of at least 3% of GDP by 2025 would have been welcome
Empty Growth
If a sustained economic growth doesn’t bring about basic healthcare and living benefits for millions, it indicates a country is clocking empty growth, without significant development
Role of Private Sector recognised
- NHP 2017 envisages private sector collaboration for strategic purchasing, capacity building, skill development programmes, awareness generation, and developing sustainable networks for communities to strengthen mental health services
- PPPs (public private partnerships): Instead of investing in setting up new hospitals, the government can enter into public private partnerships (PPPs) in every district and help private hospitals subsidize costs for people below the poverty line
- This will take much less investment than opening new hospitals as it will utilize the existing infrastructure of hospitals
NCDs
- Apart from the unfinished agenda of addressing infectious diseases, nutritional deficiencies, the escalating epidemic of non-communicable diseases (NCDs) has become a major concern
- NCDs contribute to 60% of the disease burden in India today
- In this light, the clear guidelines on finding sustainable solutions to fight the growing burden of NCDs is a welcome approach
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