The Hindu Editorial Analysis | 31st August ’20

Table of Contents

Message to China | ToI

Kavkaz 2020 multi-nation military exercise, Russia
India has rightly decided to pull out of it.
Members of the Shanghai Cooperation Organisation (SCO) group are participating in the military drill.
The SCO platform is valuable for New Delhi.
It can’t be business as usual with China
Zapad 2017 (West), Vostok 2018 (East), Tsentr 2019 (Center), and now Kavkaz 2020 (South)
All correlate to Russia’s military districts.
Total 19 Countries: China, Pakistan, Russia, Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan, Mongolia, Syria, Iran, Egypt, Belarus, Turkey, Armenia, Abkhazia, South Ossetia, Azerbaijan and Turkmenistan are set to take part in Kavkaz 2020.
The word Kavkaz is derived as a modern variant of Caucasus or Caucasia, a region between the Black Sea and the Caspian Sea and mainly occupied by Armenia, Azerbaijan, Georgia, and southwestern Russia.

Earlier, we used to believe in compartmentalisation of border issue
Beijing has no particular problems with an unresolved boundary
India-Russia question looms large too
Moscow deepens its partnership with Beijing
China-Pakistan axis

A development that will hardly put India at ease

The World Bank halted its annual publication, ‘Doing Business’ report
Detected irregularities of data for a few countries
WB will perform an audit report for the last five years
India’s success in boosting its ease of doing business ranking is spectacular, to 63rd rank in 2019, up from the 142nd position in 2014.
‘Make in India’ target launched in 2014
1. Raising the manufacturing sector’s share in GDP to 25% (from 16-17% per cent)
2. Creating 100 million additional jobs in the manufacturing sector by 2022.
Chile’s global rank went down sharply, from 34th position in 2014 to 67th in 2017.
Michelle Bachelet, Chile’s former Socialist President (2014-18): accused the World Bank of manipulating the ease of doing business index methodology to show her presidency in poor light.
Going beyond the data and methodology, does the ease of doing business index have predictive power?
While India’s rank pole vaulted, it has meant nothing on the ground.
3.5 million jobs were lost between 2011-12 and 2017-18
National Accounts Statistics: Annual GDP growth rate in manufacturing fell from 13.1% in 2015-16 to zero in 2019-20
It has been the same with Russia.
China’ ranking is low, but it attracted highest capital inflows
There are many shortcomings in the design and implementation of the index.
The Indicators used for the index are de jure (as per the statute), not de facto (in reality).
The data for computing the index are obtained from larger enterprises in two cities, Mumbai and Delhi, by lawyers, accountants and brokers — not from entrepreneurs.

Alone at the top

For most of this month, India has consistently been contributing the most number of daily confirmed COVID-19 infections to the world.
This week, it reported 78,508 infections on a single day — a record single day spike — that has pushed the infection tally to over 3.6 million.
In March, projections based on epidemiological modelling which indicated that millions would be infected were met with denial by the government as well as disbelief by many, especially because of how it had pulverised medical health systems in Europe and the United States.
India’s confirmed case fatality rate (CFR) is below 2% — totalling to over 64,500 deaths.
The U.S. and Brazil, the only two countries with more cases than India, have a CFR of around 3%.
That the virus has managed to infect some of India’s most secluded tribes in the Andaman and Nicobar Islands is a pointer that it has now set deep roots within the country along with several other bacteria and viruses that thrive in India’s tropical climate.

Despite the messaging, it is still advantage China

India’s goal of becoming an alternative supply source and investment destination to China.
Fewer U.S. companies than predicted might quit China
Companies focused on the Chinese domestic market rather than as a base for exports will likely remain, at least for now.
Those that do leave may not choose India as a relocation destination.
Companies also see other Asian countries as more competitive.
To change their minds, these sceptics must be convinced that India offers the benefits of China with fewer risks.
India’s open and vibrant press, independent judiciary, and other advantages of democratic governance also provide a favourable contrast to China.
There are no Indian government hackers stealing foreign companies’ industrial secrets.
India’s policies such as taxes on foreign e-commerce companies and education providers seem constructed to disadvantage foreign investors
China offers manufacturing infrastructure and skill level that allows innovations to move quickly from prototype to product.
China’s specialised industrial zones are massive, collocating companies, factories, logistics, and even research and universities.
New Delhi can start by focusing development in those Indian States that have already demonstrated the ability to produce and export in key sectors.
Make a proper singal window system
We need transparent & predictable policy framework

As Abe bows out | IndExp

Few modern interlocutors of India brought the kind of personal affection and policy innovation that Japanese Prime Minister Shinzo Abe did in the engagement with Delhi.
Due to health reasons, Japan’s longest-serving prime minister stepped down on Friday.
He has often recalled his maternal grandfather and former prime minister Nobusuke Kishi’s visit to India in 1957 and the special bond he struck with Prime Minister Jawaharlal Nehru.
Regional economic and security order
Abe’s vision on the “confluence of two seas” — now the Indo-Pacific
It was also Abe who first called for the construction of a coalition of four Asian democracies in partnership with Australia and the US.
He will be remembered for long as the man who moved post-War Japan out of its defensive comfort zone under the American shadow and unveiled the possibilities for Asia taking responsibility for its own security.

From Plate to Plough | IndExp

Bountiful rains and the news of tractor sales shooting up by 38.5 per cent in July have triggered quite a buzz in the market.
It is being claimed that agriculture will be the saviour of the economy this year.
With water storage in reservoirs in good shape, not only is the kharif harvest likely to be good, there is also hope for a robust rabi crop.

The Green Revolution gave a fillip to the demand for tractors to meet the pressing need of completing timely operations in agriculture.
1991 was a landmark event — it increased competition, improved quality, and offered more choices to the farmers.
Today, India is the largest manufacturer of tractors (excluding sub 20 horsepower (hp) belt-driven tractors used in China), followed by the US and China.
Micro surveys reveal that tractors are not being used very efficiently.
Uberisation of tractor services
This could make tractor services perfectly divisible, accessible and affordable even by small holders without owning the machine.
Dovetailing the digital revolution with farm machinery has already started in the US and Europe, ushering in what Howarth Buffett (a farmer and brother of billionaire Warren Buffett) calls the “Brown Revolution”.

NEWS

PM Modi stresses importance of Atmanirbhar Bharat for all round growth, development of nation; Urges Startups to make India world hub for Toy production
In ‘Maan Ki Baat’ programme, Mr Modi highlights importance of public participation in Nutrition movement
PM exhorts students and teachers to bring to fore stories of unsung heroes of freedom struggle
COVID-19 recovery rate improves to over 76 per cent
Finance Ministry asks banks to refund charges collected on electronic transactions after 1st Jan, 2020
Maharashtra: Transport Minister Nitin Gadkari lays foundation stone, inaugurates National highway projects
Famous art of ‘Etikoppaka’ dolls of Visakhapatnam district finds a place in “Mann ki Baat”
Centre would continue to support all initiatives of NE States in containing COVID-19, asserts Home Secy. Ajay Kumar Bhalla
President and Vice President greet people on eve of Onam
ED raids firms running Chinese betting apps; Freezes around Rs 47 crore rupees in four bank accounts
Global death toll from COVID19 surpass 840,000
India, Singapore sign Implementing Arrangement on Humanitarian Assistance & Disaster Relief
Dr. Harsh Vardhan invites stakeholders in country and abroad to participate in formulating STIP 2020
Alexander Kristoff wins opening stage of Tour de France