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Daily Current Capsules - 29th August 2019

G7 Summit 2019
G7 leaders make joint statement on fair trade

Relevance IN - Prelims (about G7 and its take ways) + Mains ( GS II international institutions)
What's the NEWS
  • A statement issued at the conclusion of the two-day meeting of the G7 leaders in the French resort city of Biarritz, says the main issues covered included trade, Iran, Libya, Ukraine and Hong Kong.
  • France issued a short statement at the end of a meeting of G7 leaders on several issues, but it was not a communique along the lines of those usually drawn up at the annual summit, reflecting divisions.
  • The statement said the seven industrialised nations were committed to open and fair world trade and to global economic stability.
  • It said they wanted significant changes to the World Trade Organization to make it more efficient in protecting intellectual property, resolving disputes more quickly and eradicating unfair trade practices.
  • French President Emmanuel Macron said that the 3-day gathering of G7 leaders in southwest France came in under budget and was "one of the least expensive" Group of Seven summits ever.
  • G7 world leaders are now looking ahead to what's next after the summit came to a close in Biarritz.
Know! the important takeaways of G7
  • The G7 group to reinstate Russia as a permanent member of the grouping but no consensus was reached on whether or not to invite Russia to the next year's G7 summit in the United States.
  • French President Emmanuel Macron said that he and German Chancellor Angela Merkel would be organizing a summit in the coming weeks with the Russian and Ukrainian leaders to obtain results on the Ukraine crisis.
  • The G7 leaders had expressed concern during their summit meeting that trump's trade war with China could spiral outward and called for a sensible resolution.
  • The G7 summit this year laid increasing focus on climate change amid a backdrop of the burning Amazon, a month after the Earth recorded its hottest month ever.
  • Indian Prime Minister Narendra Modi while interacting with the media alongside US President Donald Trump said that all issues between India and Pakistan are bilateral and that is why India does not don't want to trouble any third country.
  • The G7 leaders confirmed the existence and importance of the Sino-British Joint Declaration of 1984 on Hong Kong and called for violence to be avoided.
  • US President Donald Trump vowed to work out a very big trade deal, bigger than ever with the United Kingdom after Brexit.
  • US President Donald Trump announced locking of a new trade agreement with Prime Minister Shinzo Abe of Japan. The deal aims to secure market access for several American agricultural goods and Japan has agreed to purchase large sums of corn from the US.
Know! about G7
  • The Group of Seven (G7) is an international intergovernmental economic organization consisting of the seven largest IMF-described advanced economies in the world: Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States; between 1997 and 2014, the group included Russia and was known as the Group of Eight, and had for a year been known as the Group of Six before the 1976 inclusion of Canada.
  • As of 2018, the seven countries involved represent 58% of the global net wealth ($317 trillion) and more than 46% of the global gross domestic product (GDP) based on nominal values, and more than 32% of the global GDP based on purchasing power parity.
  • The European Union has also been an invitee to G7 summits, and other expanded summits with other nations have met under the banner of the Group of Eight + Five.
  • With the G20 major economies growing in stature since the 2008 Washington summit, world leaders from the group announced at their Pittsburgh summit in September 2009 that the group would replace the G7 as the main economic council of nations.
Health Sector
Health Ministry signs MoU with Ministry of Social Justice & Empowerment for enhanced outreach on HIV/AIDS prevention
Relevance IN - Prelims ( about the significance of MoU) + Mains ( GS II issues relating to development and management of social sector and services relating to health)
What's the NEWS
  • The Ministry of Health and Family Welfare signed a MoU between National AIDS Control Organisation (NACO), under Ministry of Health and Family Welfare, and Department of Social Justice and Empowerment (DoSJE) under Ministry of Social Justice & Empowerment (MoSJE),
Know! all about the MoU and its significance
  • It has played a very big role in significantly reducing the prevalence of HIV/AIDS in the country, and that too faster than the global rates.
  • The impact of the programme has been significant with more than 80% decline in estimated new infections from peak of epidemic in 1995. "Similarly, estimated AIDS related death declined by 71% since its peak in 2005.
  • As per UNAIDS 2018 report, the global average for decline in new infections and AIDS related deaths from peak has been 47% and 51% respectively and the Government is fully committed for meeting all the set goals to eliminate HIV/AIDS by 2030.
  • It will help in developing specific strategies and action plans for HIV and AIDS prevention and mechanisms for drug addiction treatment and extending social protection schemes to the vulnerable populations.
  • The MoU will help in developing human resources and build capacity in order to strengthen the service delivery mechanisms for HIV & AIDS prevention, drug addiction treatment and referral to services offered by National AIDS Control Programme and DoSJE.
  • It aims at reducing incidence of social stigma and discrimination against victims of drug abuse and Children and People Living with HIV/AIDS. It aims to promote enabling environment based on no stigma and discrimination
  • The MoU will help in reaching out to the marginalised groups and will provide opportunity for empowerment and access to social protection schemes by the high risk population, persons engaged in begging, People Living with HIV/AIDS (PLHIV), and Children affected by HIV & AIDS (CABA).
  • The MOU will catalyze in achieving the national goals and objectives of HIV prevention and impact mitigation.
  • Through this MoU, the services of various institutes under DoSJE such as National Centre for Drug Abuse Prevention (NCDAP), National Institute of Social Defence (NISD), Integration Rehabilitation Centres for Addicts (IRCAs) will be leveraged for execution of activities laid out in the MoU.
Economic Development/ Social Justice
MSME Minister urges key stakeholders to come together to boost the Khadi sector
Relevance IN - Prelims ( about khadi sectors and MSME industries and initiatives taken by the government to strengthen MSME) + Mains ( GS II government policies and interventions for development in various sectors)
What's the NEWS
  • The Government has taken up a mission-mode project of creating 5 crore jobs in 5 years in the MSME sector.
  • Government has decided to take the proportion of MSME exports to 50% and to increase the GDP contribution of the MSME sector from 29% to 50% in the next 5 years.
Steps taken by the government to strengthen the Khadi sector
  • The Ministry of Railways to serve tea in kulhads made of terracotta and to make these kulhads mandatory in all bus stations and railway stations
  • To modernize Khadi - in product design, fashion design, weaving and other processes. New research needs to be incorporated and adopted. I
  • The Government is working on policies to promote growth. The government will provide support in measures such as reducing cost of capital, in bringing in mechanization and modernization, and in reducing logistics and power costs.
  • The Government is developing an e-market portal like Alibaba, by the name of Bharat Craft. This will provide a direct interface between buyers and sellers. We are also launching a Bank of Ideas and Innovations.
  • Khadi has universal appeal. It is eco-friendly, hygienic for the body, uses less water and provides livelihood support to millions.
  • The middle-men should be removed as much as possible, so that maximum profit goes to the artisans, enabling them to lead a dignified life.
  • We need to think differently and explore how technology can be used for the benefit of Khadi.

  • After Aadhaar-seeding, the number of artisans involved in the Khadi sector has come down to a realistic figure of around 4.75 lakh. Every incentive provided to artisans now goes directly to their bank account through Direct Benefit Transfer. We need to expand this, to bring in better standards, quality and international collaborations.
  • The Ministry also launched Tech Saksham, a CII Tech Project, aimed at accelerating MSME growth through technology enablement.
Know! more about CII TECHSAKSHAM
  • CII Tech-Saksham for MSMEs, a Ministry of MSME and Confederation of Indian Industry (CII) partnered project, brings together technology majors Dell Technologies India, HP India, Intel India, Vodafone Idea Ltd, WhatsApp India & Yes Bank to address technological gaps faced by MSMEs in their growth.
  • Aligned with the Ministry's aspiration of generating value-added employment, the stated vision of CII TECHSAKSHAM is to bridge the gap in technology adoption for MSMEs so as to provide an impetus for them to be competitive on a global scale, increase their contribution to country exports and leverage cost efficiencies.
  • CII TECHSAKSHAM is a three-year long comprehensive project which, in its first phase, will focus on sectors that are labour-intensive and have propensity to respond positively to tech-adoption, and will spark a larger discussion in other MSME clusters.
  • Through various policy recommendations, knowledge sessions, mentoring initiatives, and useful resource banks for MSMEs, TECHSAKSHAM will help the ecosystem address critical barriers such as awareness and cost of technology purchase/maintenance, resources and manpower required to run the technologies, return on investments, etc.
  • The CII-Centre of Excellence for Competitiveness for SMEs would also play a key role in deploying technological interventions towards bringing in operational efficiencies amongst the MSMEs coupled with handholding & mentoring through its recognized cluster approach.
Cabinet meeting
Relevance IN - Prelims ( factual information regarding the cabinet decisions) + GS II and III - government policies and interventions for the development of various sector + economic development)
Highlights
  • Approval for 75 new medical colleges; FDI norms eased for single brand retail, digital media, manufacturing. The Cabinet has approved 75 new medical colleges, to be established by 2021-22.
  • Prakash Javadekar said that Cabinet has approved Establishment of an International Coalition for Disaster Resilient Infrastructure (CDRI).
Know! the important takeaways of the cabinet meeting
  • The government will start 75 new medical colleges in the country, announced Information and Broadcasting Minister Prakash Javadekar after a meeting of the Union Cabinet chaired by Prime Minister Narendra Modi
  • The new medical colleges, to be opened in unreserved districts, will be built at the expenditure of Rs 24,375 crore and will add 15,700 more MBBS seats,
  • The government also announced a Rs 6,268 crore subsidy for export of 6 million tonnes of sugar during the 2019-20 marketing year starting October in order to liquidate surplus domestic stock and help mills in clearing huge sugarcane arrears to farmers.
  • A lump sum export subsidy of Rs 10,448 per tonne will be given to sugar mills in the 2019-20 marketing year (October-September), costing the exchequer Rs 6,268 crore as a subsidy
  • The cabinet has also establishment of an International Coalition for Disaster Resilient Infrastructure (CDRI), adding that the prime minister will launch CDRI during UN Climate Summit in New York on 23rd September 2019.
  • The government has relaxed Foreign Direct Investment rule for foreign single-brand retailers and also permitted foreign investment in contract manufacturing and coal mining.100 per cent FDI under automatic route in coal mining and associated infrastructure has been approved.
  • To boost domestic manufacturing, 100 per cent FDI in contract manufacturing under automatic route has been allowed, adding that 26 per cent FDI has been allowed in digital media.
  • On FDI in single-brand retailing, the Cabinet has expanded the definition of mandatory 30 per cent domestic sourcing norm. It also allowed single-brand retailers to start online sales, waiving the previous condition of setting up a mandatory brick-and-mortar store.

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