Daily Current Affairs - February 01, 2020 (The Hindu, PIB, Fact Pedia)

February 01, 2020 - Find all the important news articles and editorials from The Hindu, PIB, Fact Pedia on our Daily Current Affairs Feed.

Source: AKS IAS Academy - NeoStencil Partner Institute for Civil Services Preparation
             Click here to enrol for AKS IAS Academy courses

The Hindu – Hyderabad Edition 

  1. CEA sees growth rebounding to 6%
  • Where does it fall under UPSC Syllabus?
  • Prelims: Economic development
  • Mains: GS3: Economy
  • Synopsis:
  • The Economic Survey 2019-20 was released by the Chief Economic Advisor (CEA) Krishnamurthy Subramanian.
  • It forecasted the GDP growth for 2021 will be at 6.0-6.5%
  • It said a sharp decline in fixed investment due to slow growth of real consumption reduced the economic growth.

Get Started with UPSC Preparation

Current Affairs

Detailed Analysis

IAS Counselling

by Subject Experts

Free Material

for UPSC Preparation

  1. GDP growth revised downwards for 2018-­19
  • Where does it fall under UPSC Syllabus?
  • Prelims: Economic development
  • Mains: GS3: Economy
  • Synopsis:
  • The National Statistical Office (NSO) released the First Revised Estimates of National Income, Consumption Expenditure, Saving and Capital Formation for the financial year 2018-19.
  • Gross Domestic Product:
  • Nominal GDP: 189.71 lakh crore (11% growth)
  • Real GDP: 139.81 lakh crore (6.1% growth)
  • Nominal net national income: 167.89 lakh crore (10.8% growth)
  • Gross National Disposable Income: 192.63 lakh crore (11.2% growth)
  • Savings: 57.13 lakh (household is the highest contributor)
  • Gross Capital Formation: 61.09 lakh crore
  • Per Capita Net National Income at current prices: Rs. 1, 26,521 in 2018-19
  • Consumption Expenditure:
  • Private: 112.54 lakh crore
  • Government: 21.04 lakh crore


  1. A chance to chart China-like export trajectory
  • Essence of the article: Adopting successful international methods can be a good path for creating jobs and reducing unemployment in India.
  • Where does it fall under UPSC Syllabus?
  • Prelims: Economic development
  • Mains: GS3: Economy
  • Synopsis:
  • Economic Survey suggested India to adopt a Chinese strategy for creating 4 crore well-paid jobs by 2025 and 8 crore jobs by 2030.
  • It said the integration of “assemble in India for the world” with government's “Make in India” initiative can help in achieving this.
  • Expected Outcomes by doing so:
  • 4 crore well-paid jobs by 2025 and 8 crore jobs by 2030
  • Rise in export market share to about 3.5 % by 2025 and 6 % by 2030 and
  • One quarter increase in value added products required for making India a $5 trillion economy by 2025.
  • Assemble in India for the World:
  • Chinese model to create jobs
  • Strategy of the model:
  • Specialization at large scale in labor-intensive sectors especially network products
  • Focus on enabling assembling operations at mammoth scale in network products
  • Export primarily to markets in rich countries
  • Trade policy must be an enabler


  1. Bigger banks needed for $5 trillion economy
  • Essence of the article: If not addressed, the Public Sector Banks in India can never be part of $5 trillion economy success story.
  • Where does it fall under UPSC Syllabus?
  • Prelims: Economic development
  • Mains: GS3: Economy
  • Synopsis:
  • Economic survey studied the status & problems being faced by public sector banks and recommended some solutions to address them.
  • Status of PSBs:
  • Since 1969, India’s Banking sector did not develop in proportion with the growth in the size of the economy.
  • India needs at least eight banks in the top 100 banks globally to become a $5 trillion economy.
  • Currently, only the State Bank of India with 55th rank is in the world’s top 100 banks.
  • Issues in PSBs:
  • PSBs are inefficient compared to their peer groups on every performance parameter.
  • In 2019, investment for every rupee in PSBs on average, led to the loss of 23 paise while in private banks it led to the gain of 9.6 paise.
  • Credit growth in PSBs has been much lower than Private Banks for the last several years.
  • PSBs enjoy less strategic and operating freedom as compared to private banks.
  • Public Sector Banks are away from taking risks in lending or in renegotiating bad debt due to fears of harassment under the veil of vigilance investigations.
  • Solutions to address issues in PSBs:
  • Adopt Employee Stock Ownership Plan (ESOP) for the Public Sector Banks (PSBs) employees.
  • Incentivize employees and align their interests with that of all shareholders of banks.
  • Create a Public Sector Banking Network (PSBN) that uses technology to screen and monitor borrowers comprehensively to prevent any build-up of bad loans in the future


  1. Stubble burning incidents come down
  • Where does it fall under UPSC Syllabus?
  • Prelims: Environment
  • Mains: GS 3: Agriculture & Environment
  • Synopsis:
  • As per the ES, stubble-burning incidents (61,332) in 2019 was the least in four years.
  • But it highlights agricultural residue burning as a “major concern”.
  • Stubble burning:
  • Practice of intentionally setting fire to residues that remains after the harvest of a crop.
  • It is usually done to clear the field quickly for the next season and to burn off weeds and other pests.
  • Government measures to reduce stubble burning:
  • “Zero-tolerance policy” adopted by Centre and states of Punjab, Haryana and Uttar Pradesh
  • Action Plan: Punjab gave 80% subsidy to cooperative societies for straw management machinery and at 50% subsidy to individual farmers.
  • Happy Seeder: It is a tractor-operated machine developed by the Punjab and Australia for in-situ management of paddy stubble (straw)
  • Advanced Air Quality Early Warning System: It uses data of stubble burning incidents from the past 15 years to predict the date and place of the next burning.
  • Recommendations by Economic Survey:
  • To promote Agriculture conservation with “low lignocellulosic” crop residues such as rice, wheat and maize.
  • Encouraging Crop residue-based briquettes (a block of compressed coal dust or peat used as fuel).
  • Encouraging Thermal power plants in the vicinity to undertake co-firing of crop residues with coal.


  1. Press Information Bureau (PIB)
  2. India Should Reduce Scope for Improvement in Time Taken in Enforcing Contracts Says Economic Survey
  • Which part of UPSC syllabus covers this:
  • Prelims: Economy
  • Mains: GS3: Economy
  • Synopsis:
  • In Ease of doing business rankings:
  • India’s rank: 63 (77 in 2018)
  • Improved by 14 places
  • Improved areas: dealing with construction permits, trading across borders and resolving insolvency.
  • Turnaround time of ships in India halved to 2.48 days in 2018-19 from 4.67 days in 2010-11.
  • But India still needs to improve in Ease of Starting a Business, Registering Property, Paying Taxes and Enforcing Contracts.
  • Challenges in ease of doing business:
  • Delhi requires 26 licenses to open a restaurant whereas, China and Singapore require only four licenses to open a restaurant.
  • Setting up and operating services or manufacturing business in India is a tedious and time-consuming task.
  • How this can be improved?
  • Reducing time and cost for starting a business in India, in sectors that faces many regulatory hurdles even for routine business. Ex: Service Sector
  • Increasing digitalization and seamlessly integrating multiple agencies onto a single digital platform can reduce procedural inefficiencies in cross-border trade.
  • Finding out regulatory and process bottlenecks for tourism and manufacturing and correcting them at the central, state or municipal levels.
  • Streamlining of logistics on Indian seaports with inter-ministerial coordination.


  1. Address by the President of India Shri Ram Nath Kovind to the joint sitting of Two Houses of Parliament
  • Which part of UPSC syllabus covers this:
  • Prelims: Polity
  • Mains: GS2: Polity – Parliament
  • Synopsis:
  • Recently, President of India addressed the joint sitting of both the Houses of Parliament at the beginning of the Budget Session.
  • About president Address:
  • Article 87 – deals with two instances when the President specially addresses both Houses of Parliament. They are:
  • At the beginning of the first Session after each general election when the reconstituted lower house meets for the first time.
  • At the beginning of the first session of each year.
  • President’s speech highlights the government’s policy priorities and plans for the upcoming year.
  • It also provides a broad framework of the government’s agenda and direction.



  1. India ranked third in entrepreneurship
  • As per World Bank, India ranks third globally in the number of new firms created (1.28 lakh)
  • New firm (formal sector) creation in India increased dramatically since 2014 by 12.2 %
  • It is high in the services sector than in manufacturing, infrastructure or agriculture.
  • Significance of new firms: 10% increase in registration of new firms in a district yields a 1.8 % increase in Gross Domestic District Product (GDDP).
  • States with highest Entrepreneurial activity: Delhi, Mizoram, Uttar Pradesh, Kerala, Andaman & Nicobar Islands, and Haryana.
  • Major factors responsible for new firm creation:
  • Education and literacy
  • The eastern part of India has least number of new firms due to lowest literacy rate (59.6%)
  • Flexible labour laws in job creating sectors
  • Physical infrastructure


  1. Temasek-like model
  • It is a Singapore based disinvestment model
  • It is proposed by economic survey of 2020
  • Objective: To maximize returns from public sector enterprise
  • About Temasek:
  • Under this model, the government can transfer its stake in the listed Central Public Sector Enterprises (CPEs) to a separate corporate entity.
  • This entity will be managed by an independent board and must sell or divest the government stake in these CPSEs over a period of time.
  • This will lend professionalism and autonomy to the disinvestment programme which in turn will improve the economic performance of the CPSEs.
  • Why it is needed in India? 11 CPSEs which underwent strategic disinvestment from 1999-2000 to 2003-04, made efficient gains from privatization
  • Benefits of these disinvestment:
  • higher profitability
  • Promotes efficiency
  • Increases competitiveness
  • Promotes professionalism


  1. Reports/Indices/Resolutions
  1. Beijing Plan of Action (Beijing +25)
  • The Beijing Declaration was adopted by the United Nations (UN) at the Fourth World Conference on Women on 15 September 1995.
  • Objective: To promulgate a set of principles regarding the equality of men and women.
  • It covers 12 key critical matters of concern and areas for action to represent the main obstacles in women empowerment.


  1. Dynamic health Index
  • It is a health score index for non-banking finance companies (NBFCs)
  • Aim: To provide an early warning signs for liquidity crisis in a non-banking finance company (NBFC) to tackle the problem of financial weakness.
  • Index Range: -100 to 100 (low to high financial stability)
  • Parameters:
  • Asset Liability Management (ALM) Risk
  • Interconnectedness Risk
  • Financial and Operating Resilience of an NBFC and
  • Over dependence on short-term wholesale funding
  • Benefits: It can be used by policy makers to allocate capital to stressed NBFCs in an optimal way to alleviate a liquidity crisis.


  1. TERM Bank
  2. Thalinomics
  • It is seen in economic survey of 2020 as a chapter, 'Thalinomics: The economics of a plate of food in India'.
  • Thali = plate of food
  • It quantifies what a common person pays for a 'thali’ in India.
  • It assesses whether a 'thali' has become more or less affordable over the last few years.
  • From 2015-16 there was a shift in dynamics of thali prices
  • Due to reform measures introduced to enhance agricultural sector.
  • Veg 'thali' affordability has improved by 29% and non-veg Thali affordability by 18% during 2006-07 to 2019-20.


  1. Budget
  • It also known as the annual financial statement
  • According to Article 112 of the Indian Constitution, the Union Budget of a year is a statement of the estimated receipts and expenditure of the government for that particular year.
  • It keeps the account of the government's finances for the fiscal year that runs from 1st April to 31st March.
  • Union Budget = Revenue Budget + Capital Budget
  • Revenue Budget = Revenue Receipts (tax & nontax) – Revenue Expenditure
  • Capital Budget = Capital Receipts – Capital Expenditure


  1. Divestment/Disinvestment
  • It is the action of an organization (or government) selling or liquidating an asset or subsidiary.
  • Benefits:
  • Higher profitability
  • Promotes efficiency
  • Increases competitiveness
  • Promotes professionalism



  1. DATA POINT - Stats Corner

Let’s know some stats about “Service Sector”


  • Contribution to GDP: 55%
  • FDI share: Two-thirds of total FDI inflows into India
  • Exports share: 38% of total exports
  • Size of IT and Business Process Management (IT-BPM) Services: $177 billion
  • Share of Tourism: 24% of the world’s international tourist arrivals (India is 22nd in world)
  • Space sector: India spent about US$ 1.5 billion on space programs in 2018


    Talk to us for

    UPSC preparation support!


Do you want to become an IAS officer like Saumya Sharma?
Study Online at  Neostencil Logo

Your Exam segments is being saved. Please wait....

Select Exam(s) you are interested in

please enter valid OTP