After the devastation caused by first wave in 2020, Coronavirus cases rose sharply in April and May 2021 causing the Second Wave. While Government and Industry thought that they had gained control of the situation by January 2021, the second wave found us wanting for basic necessities such as oxygen and medical supplies. It appears that the second wave is on its way out with daily cases coming down from the peaks of 4 lakh cases in April 2021, but we have lost almost 4.0 lakh lives to COVID-19. With the hope that the situation will improve in coming months, a SBI report predicts third wave in August-September, 2021.

Lower GDP Growth
In the wake of Second Wave of Covid 19, many economists and ratings agencies have lowered their FY22 GDP forecast for India in just a matter of months. While India’s March quarter (Q4FY21) GDP growth improved, economists believe that the gains have been eroded by the second wave of the pandemic. In June, the State Bank of India (SBI) slashed the country FY22 growth forecast to 7.9 per cent from the earlier 10.4 per cent. 

Rise in Unemployment hits Poor Households
Rising unemployment has emerged as the biggest economic concern during the second Covid-19 wave as it has mostly affected the poorer sections of society. Data suggests that the pace of employment increased sharply in May as smaller firms cut jobs at the fast pace. Think tank Centre for Monitoring Indian Economy had confirmed that one crore Indians have lost jobs during the second wave and the numbers are still rising. 

Weak Consumer Demand Hits Industry
Lack of demand and poor consumer sentiments during the second wave are factors that will significantly make India’s economic recovery harder. Consumers are not in a mood to spend freely after second wave, given the health and financial emergencies that shocked the households. The combination of slow demand growth and lack of consumer confidence could significantly derail the economy as people are likely to remain hesitant for a longer period before they start spending on discretionary items.

Loan Defaults on Rise
This negative impact is evident in the official data on rising loan defaults and cheque bounces. All Banks have reported a rise in loan defaults and cheque bounces during the second wave. It is a clear sign that middle class Indians are struggling to manage debts and liabilities. Cheque bounces rate for loan repayments have doubled to over 20 per cent from the year-ago period while credit card defaults rose to 18 per cent, says a Reuters report. Many banks have indicated that retail loan defaults are likely to rise in the coming months. HDFC Bank’s CEO Sashidhar Jagdishan recently stated during an investor call that the bank may not have a “grip of what is happening for the first time in so many years.”

Rural India Hit Hard
The second wave has seen stricter and longer lockdowns in the rural parts of the country too. Most APMC Mandis were closed for operations at the peak of Second Wave. Due to the closure of Mandis, vegetable vendors, and processing industries have also been hit. The average wage growth for the agriculture sector for the period of November 2020 to March 2021 has reduced to 2.9 percent (2nd wave) from 8.5 percent in April to August 2020 (1st wave).

Government Takes Steps

Government of India has taken many steps to support the Indian economy and industry. Here are the key steps:

• In March 2020, the Government announced a Rs 1.70 lakh crore-Pradhan Mantri Garib Kalyan Yojana (PMGKP) to protect the poor and vulnerable from the impact of the pandemic.
• In 2020, the Union government released the ‘Aatmanirbhar Bharat’ package to boost the economy and the overall stimulus was estimated to be worth around Rs 27.1 lakh crore.
• Government and the RBI also came out with a series of packages in a phased manner totalling around Rs 30 lakh crore, which is 15 per cent of the national GDP.
• To boost consumption during the festival season, in October 2020, Government announced measures that were worth close to Rs 73,000 crore to stimulate consumer spending.
• Aatmanirbhar Bharat Abhiyaan 3.0 unveiled in November 2020, ahead of Diwali, was worth Rs 2.65 lakh crore. Of the total amount, the maximum of Rs 1.45 lakh crore was allocated to give a boost to manufacturing activites.
• In June 2021, Finance Minister Nirmala Sitharaman announced some fresh relief measures for the economy, the first such package after the second COVID-19 wave, focusing largely on extending loan guarantees and concessional credit for pandemic-hit sectors and investments to ramp up healthcare capacities. The government pegged the total financial implications of the package, which included some changes earlier supports, at ₹6,28,993 crore. Ms. Sitharaman announced an expansion of the existing Emergency Credit Line Guarantee Scheme (ECLGS) by ₹1.5 lakh crore. She also announced a new ₹7,500 crore scheme to guarantee loans upto ₹1.25 lakh to small borrowers through micro-finance institutions.

COVID-19 Vaccination in India
On 16 January 2021 India started its national vaccination programme against the COVID-19 pandemic. The drive initially prioritises healthcare and frontline workers, and then those over the age of 60, and then those over the age of 45 and suffering from certain comorbidities.

A new policy for Covid-19 vaccination in India come into effect on June 21. Prime Minister Narendra Modi had said India will shift to centralised procurement of vaccines, after several states faced difficulties in procuring and managing the funding of vaccines. Centre will directly procure 75 per cent of the doses manufactured by vaccine companies, and distribute this among the states, to be administered for free. Private hospitals will have exclusive access to the remaining 25 per cent.  

India’s Third Covid-19 Wave from August, Peak in September: SBI

Unfortunately, it looks like that Coronavirus pandemic is not over yet. India is expected to see the Third Wave of the Coronavirus Pandemic from August 2021 and it would reach its peak in September, a report by the State Bank of India (SBI) has projected. “Going by the current data, India can experience daily Covid-19 cases around 10,000 somewhere around the second week of July. However, the cases can start rising by the second fortnight of August,” the SBI report said. An SBI report, published in June, said a possible second wave could be “as severe as second,” though it also said the number of coronavirus related fatalities would be less than the corresponding figures due to the second wave.

COVID 19 – India to emerge stronger
While there is a short-term negative impact on India, economists are of the opinion that the disruption caused by the virus in China could pave way for more long term foreign investments in emerging economies like India as the world looks to reduce dependency on China, the largest manufacturing hub in the world. Experts feel that India has a good chance of becoming an attractive manufacturing hub given the present situation, provided the government changes some of its trade policies to bring down commodity prices. An example of Vietnam, which has gained a huge growth boost due to higher density of electronics manufacturing, is before everyone.

According to the Chief Economic Advisor of India, Krishnamurthy Subramanian the coronavirus outbreak in China provides an opportunity for India to expand exports. India is one of China’s leading trade partners in Asia and has a huge trade deficit with that country. Sharing his views at IIM Calcutta, Subramanian said, “The coronavirus outbreak in China provides a good opportunity to India to expand trade and follow an export-driven model.”  He said that China imports a lot of components, parts, assembles and integrates and then exports them. “India has been following the same pattern in terms of mobile manufacturing in the country. So, if one looks from this perspective, it provides a good opportunity for India.” said Subramanian
 

Several reforms passed by Parliament since the pandemic set in, could lift medium-term growth prospects, including the Agricultural Reforms to give farmers more flexibility over where to sell their produce, it said. Stripping out middlemen, as the reform allows, could improve farmer incomes while reducing consumer prices.

Parliament has also passed Labour Reforms. Their intent, among other things, is to improve worker access to social security notably in the large unorganised sector, strengthen occupational safety requirements, speed up the resolution of labour disputes and ease migrant workers’ ability to move between states. In addition, employers will now only need prior state government approval for redundancies if they have over 300 workers, up from 100 previously, and state governments may raise this threshold. “These changes could support formalisation of India’s labour market and improve its flexibility, with positive efficiency gains, but our assumption is that in practice their impact will be modest,” experts added.

The government also intends to privatise some state-owned enterprises, of which more than 200 are owned by the central government and 800 by state governments. A wide-ranging privatisation push could be transformative, it said. Fitch said the process of reforms in India remains especially complex and implementation at times has proven difficult.  

Let’s start with some numbers that prove India’s global stature.

1. Indian pharmaceutical sector supplies over 50% of the global demand for various vaccines, 40% of the generic demand for US and 25% of all medicines for UK.
2. India contributes the second largest share of pharmaceutical and biotech workforce in the world.
3. India’s domestic pharmaceutical market turnover reached Rs. 1.4 lakh crore (US$ 20.03 billion) in 2019, up 9.8% y-o-y from Rs. 1.29 lakh crore (US$ 18.12 billion) in 2018. In May 2020, pharmaceutical sales grew 9% y-o-y to Rs. 10,342 crore (US$ 1.47 billion).
4. Indian drugs are exported to more than 200 countries in the world, with US being the key market. Generic drugs account for 20% of the global export in terms of volume, making the country the largest provider of generic medicines globally.
5. The Indian pharmaceutical exports, including bulk drugs, intermediates, drug formulations, biologicals, Ayush & herbal products and surgical, reached US$ 16.28 billion in FY20. As of October 2020, India exported pharmaceuticals worth US$ 13.87 billion in FY21.
6. Pharmaceutical exports from India stood at US$ 16.28 billion in FY20 and US$ 2.07 billion in October 2020.
7. Medical devices industry in India has been growing 15.2% annually and is expected to reach US$ 8.16 billion by 2020 and US$ 25 billion by 2025.

Government’s Pharma Vision
The Union Cabinet has given its nod for the amendment of existing Foreign Direct Investment (FDI) policy in the pharmaceutical sector in order to allow FDI up to 100% under the automatic route for manufacturing of medical devices subject to certain conditions.

The drugs and pharmaceuticals sector attracted cumulative FDI inflow worth US$ 16.86 billion between April 2000 and September 2020 according to the data released by Department for Promotion of Industry and Internal Trade (DPIIT).

Some of the recent developments/investments in the Indian pharmaceutical sector are as follows:

1. In December 2020, Piramal Pharma Solutions announced plans to invest Rs. 235 crore (US$ 32 million) to expand its facility in Michigan, US, with additional capacity and new capabilities for development and manufacturing of active pharmaceutical ingredients (APIs).
2. In November 2020, Indian Immunologicals (IIL) commenced work on Rs. 75 crore (US$ 10.17 million) viral antigen manufacturing facility in Genome Valley, Telangana, that will enhance its vaccine production capacity by 35% by October 2021.
3. In November 2020, the Indian Institute of Technology (IIT) Bombay has stepped up research and development (R&D) amid COVID-19 and researchers are developing products such as a portable sterilisation device and germicidal cabinet; wheeled sterilisation unit, especially for hospitals; portable and rechargeable car sanitiser; eco-friendly sprays, and alcohol-free and bleach-free sanitisers.
4. In October 2020, six generic drug makers–Dr. Reddy’s Laboratories, Zydus Cadila, Glenmark Pharmaceuticals, Torrent Pharmaceuticals, Hetero Drugs and Ackerman Pharma signed a deal with Hidalgo,a state in Mexico, to establish a large pharmaceutical cluster for production and logistics in Mexico.
5. In October 2020, Aurobindo Pharma acquired MViyeS Pharma Ventures for Rs. 274.22 crore (US$ 37.30 million).
6. In May 2020, Jubilant Generics Ltd entered into a non-exclusive licencing agreement with US-based Gilead Sciences Inc to manufacture and sell the potential COVID-19 drug Remdesivir in 127 countries, including India.
7. Affordable medicines under Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP) achieved record sales turnover of Rs 52 crore (US$ 7.38 million) in the month of April 2020.
8. During December 2019, on moving annual total (MAT) basis, industry growth was at 9.8%, with price growth at 5.3%, new product growth at 2.7%, while volume growth at 2% y-o-y.
9. In October 2019, Telangana Government proposed Hyderabad Pharma City with financial assistance from the Central government of Rs 3,418 crore (US$ 489 million).
10. In September 2020, the government announced production linked incentive (PLI) scheme for the pharmaceutical industry worth Rs. 15,000 crore (US$ 2.04 billion).
11. Under Budget 2020-21, Rs. 65,012 crore (US$ 9.30 billion) has been allocated to the Ministry of Health and Family Welfare is. The Government has allocated Rs. 34,115 crore (US$ 4.88 billion) towards the National Health Mission under which rural and urban people will get benefited.
12. Government of India unveiled ‘Pharma Vision 2020’ to make India a global leader in end-to-end drug manufacture. Approval time for new facilities has been reduced to boost investment.

Indeed, above achievements are commendable for Indian pharma sector. However, there has been criticism too. 

From the ‘pharmacy of the world’ to the ‘epicentre of the coronavirus pandemic’,

From the ‘pharmacy of the world’ to the ‘epicentre of the coronavirus pandemic’, India’s fall has been swift and dramatic. Newspapers across the world have criticised India as the second wave of the pandemic unfolds.

During the first wave in 2020, India was better off than countries such as Italy, the United States, and Brazil. India’s handling of the pandemic in 2020 won praise and was a pleasant surprise. Thanks partly to a strict lockdown and perhaps because of its demographic advantage, India managed much better than even developed countries. India played true to its strength as the ‘pharmacy of the world’, sending medicines and vaccines to many countries, thus winning goodwill and praise globally.

However, the second wave of the pandemic in 2021 has caught India unawares. The epic proportion of the tragedy has affected India’s international reputation at several levels.

First, the second wave has exposed the limitations of our health infrastructure (the result of years of inadequate allocation by successive governments), raising questions about the domestic capabilities. India spends just over 1 percent of its GDP on public health, a far cry from the 16 percent spent by the US and 10 percent by Japan, Canada, France, Germany, and Switzerland.

Second, questions are being asked about the advisability of sending vaccines and medicines abroad without ensuring domestic supplies first. Third, with India putting restrictions on exports of vaccines and medicines, other countries may face shortfalls in their supplies and could accuse India of being an undependable supplier. German Chancellor Angela Merkel’s rather un-empathetic statement that the European Union ‘allowed’ India to become such a large pharmaceutical producer and her concern about what could happen if supplies do not reach the West reflects the unhappiness of countries which have relied on Indian supplies.

Finally, the longest-term damage to India’s reputation will depend on how badly the pandemic affects India’s economy and its potential to provide basic needs to its populace. If it fails to do this, it could say goodbye to its dreams of becoming the next great power. India has already had to accept assistance from abroad despite its 2004 policy of not taking such help.

But some positives amidst all this. Perhaps, it is India’s generosity which has led to the outpouring of help from so many countries with leaders like the US President Joe Biden tweeting that “India was there for us, and we will be there for them” recalling India’s generosity to the US when it was facing a crisis.

Privatization of Public Sector: Key facts
Generally speaking privatization is a way of altering the relationship between the state and the private sector to enhance the role of the private sector in the functioning of the national economy as a whole. Accordingly, privatization broadly means any process that reduces the state’s dominant role in directly owning and running the economic activities of a nation. Many countries like China with state controlled economies have gone far enough to open the doors of economies to invite private players to achieve faster growth rate.  The craze for privatization has risen manifold after the ideological defeat and disintegration of the state controlled economy of the socialist bloc.

In a country like India, Privatization in today’s concept is seen as a means of increasing output, improving quality, reducing unit costs, curbing public spending and raising cash to reduce public debt. 

Privatization of Public Sector: Need of the Hour
As PM Modi says, Privatization is the need of the hour. As the world economy tends to become one global village, privatization as a policy norm seems to override political compulsions as an instrument for achieving competitive efficiency and resource optimization.

Privatization is beneficial for the growth and sustainability of the state-owned enterprises. Following the trend of privatization across the world, the Indian government in the 1990s also introduced privatization amid hue and cry from many of the political and social groups.

To achieve an increase in the output of the country there is a need for privatization at a rapid scale which will help in improving quality of the products by reducing unit costs, curbing public spending and raising cash to reduce public debt.

Privatisation always helps in keeping the consumer needs uppermost, it helps the governments pay their debts, it helps in increasing long-term jobs and promotes competitive efficiency and open market economy. In a rapidly rising economy like India there is a need for the government to realign its priorities in mobilizing the skills and resources of the private sector in the larger task of the development.

Nowadays privatization is being seen as a solution towards the problems of public enterprises as these enterprises on being transferred from the public to the private hands will become less politicized which as a result will help in ceasing the administrative corruption. It will also help n increasing the tax revenues from profits   and strengthening the public treasury.  The advantages of privatization can be perceived from both microeconomic and macroeconomic impacts that privatization exerts.

Indian economy has a tremendous potential for growth. The economy which used to rise at 3-4% of GDP had steadily registered rising growth from 7 to 9 percent after introduction of reforms.

Privatization will give ample space for creative and innovative thinking as well as systematic and strategic planning to realize the full potential of economy 

Privatization: Adverse Impact
However, some economists point to the adverse effect of privatization. They offer following arguments:

• No Welfare State: The concept of welfare state may get defeated with the Privatization of economy. Private sector would not care about the society as its main objective is to earn profits.
• Less Social Development: Government or Public sector companies also keep doing social work simultaneously. In case privatization happens, it will result in fewer funds for society because private companies have no obligation to do social work.
• Unemployment: Privatization will also result in retrenchment of employees. In private sector enterprises there is emphasis on performance which indirectly results in work pressure and meeting deadlines or targets and individuals who have been doing work for years without much pressure find it difficult to adjust to new setting and many end up resigning from their service.
• Long Term Risk: Risk of short term gains is prominent in private companies. There are decisions to start ventures which result in short term benefits but may not be good for long term.

Foreign direct investment (FDI) is an investment made by a firm or an individual into business interests located in another country. Generally, FDI takes place when an investor establishes foreign business operations or acquires foreign business assets, including establishing ownership or controlling interest in a foreign company. It frequently involves more than just capital investment. It may include provisions of management or technology as well. The key feature of FDI is that it establishes either effective control of, or at least substantial influence over, the decision-making of a foreign business. 

FDI Categorization
FDI is commonly categorized into horizontal, vertical or conglomerate. A Horizontal FDI is when the investor establishes the same type of business operation in a foreign country. A Vertical FDI is when different but related business activities from the investor’s main business are established or acquired in a foreign country. A Conglomerate FDI is when a company or individual makes a foreign investment in a business that is unrelated to its existing business in the home country. It is mostly in the form of a joint venture.

Rising Trend of FDI in India
India is a developing nation, trying to make its way up the ladder in the world economy. To achieve its goal, it requires influx of investment, both national and international. Foreign nations often keep an eye on fast-growing economies and are keen to invest in markets where they expect great interests in the future. India allows FDI through two routes- Automatic and Government. Where in automatic route, no prior approval is required, the government route cannot be accessed without approval from Government of India.

The Government of India amended FDI policy in 2014 to increase the inflow of FDI. FDI in 25 sectors was increased to up to 100% along with up to 49% in insurance sector. Following this, India became the top destination for FDI overtaking China and USA. The sectors that cannot avail FDI include lottery business, chit funds, casinos, Nidhi companies, real estate, railways and a few others.

According to 2018 data, the main investor in India is Singapore, comprising 38.3% of the total FDI followed by Mauritius at 18.2%, Netherlands at 8.8% and USA at 7.1%. Other investors include Japan, UK, Germany, France, UAE and Cyprus. The main sectors availing these investments are chemical sector, accounting for 23.5% of the FDI, followed by services sector at 22.7% and computer software and hardware at 18.6%.

FDI helping to Boost Economy

• Revenue Generation

Sometimes, when a giant venture is to be started, capital is hard to come by. At such times, FDI comes in handy as a saviour and provides with necessary revenue to meet the initial infrastructural demands required for a project. For example, in May 2018, Walmart acquired a 77 per cent stake in Flipkart for a consideration of USD 16 billion while in February 2018, Ikea announced its plans to invest up to Rs 4,000 crore (USD 612 million) in the state of Maharashtra to set up multi-format stores and experience centres.

• Employment Generation

India is teeming with a wide work force but not enough jobs. When multi national businesses are established, it leads to job creation which the indigenous industries are not able to provide on such a wide scale. According to a report in the Business Today magazine, between 2000 and 2016, British FDI created 371,000 jobs. 10 per cent of all jobs created by FDI. The total number of people employed by British companies in India currently stands at 788,000-representing 5.3 per cent, or one in twenty, of private sector jobs.

• Getting Latest Technology

Though India is developing, it still does not have access to cutting edge technology which comes in handy when working in collaboration with foreign businesses as they tend to bring in latest technology to maintain the quality of the products and services provided by them. It helps to get the products with latest technology. Moreover, it also opens up doorways to research opportunities in the concerned field on the domestic front. FDI in manufacturing sector often helps with the setup as well as better quality of product manufactured.

• Cultural Exchange

Working shoulder-to-shoulder with people from different cultural backgrounds helps everyone evolve and develop a sense of comfort in any atmosphere if they have to live in it. Multinational businesses offer an opportunity of a multilevel cultural exchange which cannot be seen otherwise. It leads to a certain level of acceptability for the different cultures all over the world.

• Infrastructure Development

With International brands pouring in to the domestic country, there is scope for better infrastructure, be it in the field of education, health care, information technology, constitutional bodies, construction of rail, road, vehicles among others. FDI also helps to make the Indian infrastructure at par with the facilities available in foreign countries.

In June 2018, Idea’s appeal for 100 per cent FDI was approved by Department of Telecommunication (DoT) followed by its Indian merger with Vodafone. This merger made Vodafone Idea the largest telecom operator in India resulting in better overall reach of the company.

• Price Reduction

Better technology may further lead to a reduction in prices of the produced goods which in turn benefits the consumers. Moreover, when a new product is brought into the market, new research and development in the field will definitely lead to better price ranges for consumers in the future. Thus, FDI benefits consumers by reducing prices of goods and services in the long run.

• Healthy Competition

With addition of a foreign player in the market, each company strives to do its best, thus increasing the healthy competition in market and in turn benefitting the customer. This benefit may come in form of a variety of products, reduced prices or introduction of a product that was not available in the domestic market before.

Harmful Impact of FDI

FDI Hinders Economic Growth so we should not over rely on FDI. Here are some of the logical arguments:

• Foreign Investors are Volatile

Investors run after profit. If they see a better opportunity elsewhere, they may shift their interests as well as their investment to the better prospect in a heartbeat without any lieu of the consequences on the economy of the host country unless prior contracts have already been signed. This brings in the uncertainty factor when looking for FDI. This cancellation of contracts may in turn lead to devaluation of Rupee and a financial crisis at hand.

• FDI Creates Imbalance

FDI is often concentrated either in the richer states of India or in the high skill sectors. This imbalance leads to a probable increase in the economic gap between the rich and the poor. FDI projects are often concentrated to already well-developed states like Delhi, Gujarat, Maharashtra while less developed states like Bihar and Jharkhand are left behind once again thus, increasing the regional economic gap further. Apart from this, in the current scenario, FDI focuses on service sector where skilled labour is required, but the brunt of our problems lie in the majority of unskilled and semi-skilled labour. FDI in sectors like construction, manufacturing and textiles should be further encouraged in order to create more jobs for them.

• Tax Evasion

Profit-shifting behaviour among MNCs is induced by the huge tax arbitrage between jurisdictions. While the average effective corporate tax rate in China, Brazil and India ranges from around 17% to 32%, it is much lower in the tax havens of the world like Bermuda, Luxembourg and Netherlands. Corporate tax evasion is an issue that is even faced by the developed nations like US and UK and is thus something that India should take into consideration.

India has committed to the implementation of the Base Erosion and Profit Shifting (BEPS), according to a recent update by Ernst and Young. India has adopted the “country-by-country” reporting norms, which means that large MNCs will be mandated to disclose information about the entire group’s operations across the world to check if the company is shifting its profits to a low-tax jurisdiction to evade taxes

• FDI Causes Money Laundering

Sometimes, proceeds of criminal activities may be used in FDI as a front to cover it up and set up legitimate businesses. The recent case of Air Asia is indicative of how lobbying can be a major factor that can hinder a business in the long run.

• FDI harms Domestic Companies

When foreign companies open their businesses in the domestic market, they often have lower prices for products than the indigenous product prices which harms the local businesses to a certain extent. Sometimes, it may even make it hard to survive for the local businesses among the bounty of cheap products due to well-established infrastructures. FDI in retail also harms the local merchants.

• Possibility of Inflation

There is also a possibility of inflation with prolonged increase in FDI which in turn causes better incomes, more expenditure by consumers. If this expenditure is balanced in form of an increased supply of goods required according to the demand, the inflation caused will be indicative of a progressing economy where as if the incomes increase without any change in availability of products for consumers, the inflation will be detrimental to the economy. For example, if the foreign borrowings were in the form of armaments, which are of no use to the common man, the economy may suffer.

• Increase in Dependency

When FDI is availed, the host country often works on the foreign timeline and is dependent on the investing country for almost all of its operations from initial capital to laying of infrastructure to the way the business is to be carried forward. This increases dependency on foreign players and is often detrimental to the host country’s economy. For example, looking at the Mumbai-Ahmedabad Bullet Train Project, major funding is to be provided by Japan International Cooperation Agency (JICA). JICA till now had released only Rs 125 crore for the project out of the Rs 80,000 crore to be provided by JICA for the project. The project would cost roughly 1 lakh crore. This delay in funding is one of the causes for the delay of the project.

• Political Involvement

Political parties often try to direct the inflow of FDI for personal benefits which leads to obstacles in the nation’s development and create controversies that if not resolved hamper the rate of economic progression. The most recent case of such a controversy is the Rafale Deal with France’s Dassault Aviations. The opposing party claimed that the ruling party (NDA) has made the deal at triple the price. Although the Supreme Court gave a ruling in favour of NDA, the deal is still a matter of immense controversy.

The Banks’ merger dated April 1, 2020 has resulted in the creation of seven large PSBs with scale and national reach, with each amalgamated entity having business of over Rs 8 lakh crore and it has helped to create banks with scale comparable to global banks and capable of competing effectively in India and globally.

As per the mega consolidation plan, Oriental Bank of Commerce and United Bank of India have merged into Punjab National Bank (PNB); Syndicate Bank into Canara Bank; Andhra Bank and Corporation Bank into Union Bank of India; and Allahabad Bank into Indian Bank.

The exercise assumes significance as it has taken place at a time when the entire country is under the grip of COVID-19 outbreak. It has triggered 21-day lockdown to contain the spread of the deadly virus. Experts are of the opinion that merger at this point of time may not be remain a very smooth and seamless transition. However, heads of the anchor banks have exuded confidence and do not find any problem as the process has gone as per the plan with certain modification in implementation.

The four anchor banks — PNB, Canara Bank, Union Bank and Indian Bank — have postponed some part of the implementation and processes due to the lockdown for example like loan process which were proposed to be followed earlier.

In addition, consolidation would also provide impetus to merged entities by increasing their ability to support larger ticket-size lending and have competitive operations by virtue of greater financial capacity.

Advantages of Bank Mergers

• Larger Bank is capable of facing global competition
• The merger will reduce the cost of banking operation
• Merger will result in better NPA and Risk management
• Merger will help in improving the professional standards  
• Decisions on High Lending requirements can be taken promptly
• For the bank, retaining and enhancing its identity as a larger bank becomes easier. After the merger, benefits of merger are enormous and the biggest is generation of a brand new customer base, empowering of business, increased hold in the market share, opportunity of technology upgrade. Thus overall it proves to be beneficial to the overall Economy 
• Provides better efficiency ratio for business operations as well as banking operations which is beneficial for the economy
• Minimization of overall risk is there due to mergers and acquisitions which is always good from the business point of view
• Leads to increase in profitability and helps in raising the standard of living which is absolutely crucial for a growing economy like India
• Chances of survival of underperforming banks increases hence customer trust remains intact which is vital for the Economy. The weaker bank gets merged into stronger one and gets the benefit of large scale operations
• The objectives of financial inclusion and broadening the geographical reach of banking can be achieved better with the merger of large public sector banks and leveraging on their expertise.
• With the large scale expertise available in every sphere of banking operation, the scale of inefficiency which is more in case of small banks, will be minimized
• The merger will help the geographically concentrated regionally present banks to expand their coverage
• Larger size of the Bank will help the merged banks to offer more products and services and help in integrated growth of the Banking sector
• A larger bank can manage its short and long term liquidity better. There will not be any need for overnight borrowings in call money market and from RBI under Liquidity Adjustment Facility (LAF) and Marginal Standing Facility (MSF)
• In the global market, the Indian banks will gain greater recognition and higher rating
• With a larger capital base and higher liquidity, the burden on the central government to recapitalize the public sector banks again and again will come down substantially
• Multiple posts of CMD, ED, GM and Zonal Managers will be abolished, resulting in substantial financial savings
• Bank staff will be under single umbrella in regard to their service conditions and wages instead of facing disparities.

Problems Arising due to Mergers & Acquisitions in Indian Banking
Most of the problems arising due to mergers and acquisitions are more emotional and social in nature than technical or managerial. The major problems which arise are:-

• Compliance needed in every decision which might not be favorable as thinking perspectives and risk taking abilities of different organizations are different. It leads to friction and rift which, if not managed well may lead to the downfall of the organization as a whole.
• Banks are merged only on papers. Their people and culture are difficult to change. It is a recipe for disaster as it leads to poor culture fit not ideal for the organization or the economy.
• Risk of failure increases if the executives are not committed enough in bringing the merger platforms together for the merging and taking over bank. Such failure may prove brutal for the Economy.
• Impact of customers on banking merger or acquisition is often quite emotional. If customer perception is not managed with frequent and careful communication it may lead to loss of business which is never good for the Economy.
• Managing Director of Federal Bank, V.A. Joseph is of the view that Co-existence of the big, medium and regional banks would be preferable in the present scenario. According to him most acquisitions in India were borne out of compulsions and over 90 per cent of past acquisitions had failed to achieve the objectives.
• Many banks focus on regional banking requirements. With the merger the very purpose of establishing the bank to cater to regional needs is lost.
• Large bank size may create more problems also. Large global banks had collapsed during the global financial crisis while smaller ones had survived the crisis due to their strengths and focus on micro aspects.
• With the merger, the weaknesses of the small banks are also transferred to the bigger bank.
• So far small scale losses and recapitalization could revive the capital base of small banks. Now if the giant shaped bank books huge loss or incurs high NPAs as it had been incurring, it will be difficult for the entire banking system to sustain.

On 15^th August 2019, delivering his 6^th Independence Day Speech, Prime Minister Narender Modi expressed confidence that India would be a $5-trillion economy in 2024. More recently, speaking at a function to mark 100 years of ASSOCHAM in New Delhi on 20.12.2019, Prime Minister Modi said that BJP-led government has given the country a solid foundation so that it can achieve its target to be US $5 trillion economy by 2024. “The country has made itself so strong in the last five years that we can set such targets and achieve them too,” he said.

Earlier, in July 2019, the Economic Survey laid out a blueprint for $5 Trillion India economy. The Economic Survey 2019 presented by Chief Economic Adviser (CEA) Krishnamurthy Subramanian focusses on moving to a “virtuous cycle” of savings, investments and exports to transform India into a $5 trillion economy in the next five years. 

What is a $5-Trillion economy?

Before we move forward, lets understand the term clearly.

• Simply put, the $5-trillion economy is the size of a national economy as measured by the annual Gross Domestic Product (GDP).
• What is GDP? The GDP of an economy is the total monetary (rupee) value of all goods and services produced in an economy within a year. GDP is a way among countries (economies) to decide who is the largest and so on.
• In 2014, India’s GDP was $1.85 trillion. In 2018, it is $2.7 Trillion, and India is the sixth-largest economy in the world.

Initiatives undertaken for achieving $5 Trillion Economy target

1. Economic survey outlined a plan to make India $5 trillion economy with emphasis on driving up investment. On the consumption side, the government has taken steps to help the NBFCs and HFCs.
2. The govt provided support to NBFCs/HFCs under the partial credit guarantee scheme. The govt sanctioned support for Rs 4.47 lakh crore to NBFCs & HFCs which includes Rs 1.29 lakh crore for pool buyout of assets.
3. Within two days of cabinet approval, 17 proposals worth more than Rs 7,000 crore approved. Proposals worth Rs 20,000 crore will be approved over next two weeks under the partial credit guarantee scheme.
4. On investment side, the government has taken steps to boost investment, support real estate, credit expansion, corporate tax and bank recapitalisation.
5. To boost liquidity in the market, the government has cleared dues worth more than 60% of 32 CPSEs in the last two months.
6. Under the new external benchmarking scheme announced by the RBI, more than 8 lakh or Rs 72,201 crore worth of loans sanctioned under the new regime till Nov 27.
7. 66% of Budgeted capex expenditure of Rs 3.38 lakh crore has been taken so far. Higher government capital expenditure allows crowding in of private investment. April-Nov capex of 32 CPSEs is at Rs 98,000 crore. Railway and road ministries will have undertaken capex of Rs 2.46 lakh crore by December 31, he said.
8. Rs 60,314 crore of capital has been infused into PSU banks. Lenders have disbursed Rs 2.2 lakh crore to corporates and Rs 72,985 crore to MSMEs.
9. FDI inflows of $35-billion in first half of FY20 vs $31 billion in the same period last year has been achieved.
10. Rs 1.57 lakh cr tax refunded this yr vs Rs 1.23 lakh cr last yr: Revenue Secretary. The step will boost consumption in economy. Income tax refund up 27% so far in FY20.
11. Realty fund of Rs 25,000 crore has been created for last mile funding for stalled projects. Necessary changes in IBC made to allow projects facing insolvency to avail funds under scheme.
12. Unified regulator for international financial services enable capital flow without any hurdles.
13. Important changes in IBC: Ringfencing successful bidders of stressed assets from prosecution.

How to achieve 5 trillion dollar target

1. Increase Ease of Business and Ease of Living to promote private investments
Over the last four years, the government has scrapped over 1,300 antiquated law! It has done away with a lot of archaic procedures, rules and regulations.

Through a series of reforms, India has jumped up 65 positions in The World Bank Ease of Doing Business. No other large country has been able to do this. India has jumped up 65 positions, but our challenge is that in the next two years India must reach the top 50 and in the next five years reach the top 25.

2. Urbanization – a big driver of growth
Cities account for less than 5% of the earth land mass, but they account for over 75 % of the global GDP! So, Urbanization in cities is important as they are centers of economic growth.

While the process of urbanization has ended across America and Europe, and matured in China, it has just begun in India. In the next 5 decades, India should see more Urbanization than what we’ve done in the last 500 years. While there will be many challenges, India needs more Urbanization to grow rapidly.

3. Globalization for growth
India exists in a globalized and interdependent world. Like in Japan, Korea and China, Globalization has helped large sections of population to be lifted above the poverty line. India’s share in global export is less than 2%. So, India must learn the art of size and scale, of manufacturing to size of scale and to penetrating.

4. Women Participation is key
India cannot grow at high rates over a 3-decade period without gender parity. In India, only 26% of the women work; the worldwide average is 48%. If such a major chunk of the population is not working and we consciously don’t put women into positions of power, it will be very difficult for India to grow.

5. Agriculture Reforms in vital
It’s not possible to grow over long periods of time without some very major structural reforms in the agriculture sector because that’s where close to 60% of India lives. You can’t keep growing on subsidies, you can’t keep going on just giving assistance to farmers without ensuring better markets, without putting technology, without contract farming and so on. Agriculture sector reforms are critical.

Theme:

• On 20th September 2020, Parliament passed three farm bills, which created protests in the country.
• The three bills are –
  • ‘Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Bill‘, 2020 – ‘One Nation-one market’ concept was introduced to allow farmers to sell the produce anywhere in the country.
  • ‘Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Bill‘, 2020 – Contract farming empowers farmers to engage with wholesalers, exporters etc. so that they will get the price assurance before sowing the crop.
  • ‘Essential Commodities (Amendment) Bill‘, 2020 – This bill removed pulses, oilseeds, onions and some other products from the essential commodities list, and thereby the restrictions on the storage of these items will be removed.

Pros:

• One nation – one market can end the monopoly of ‘Agricultural Produce Market Committees‘ (APMCs). APMCs criminalises setting up of other competing markets. Some states made it mandatory for farmers to trade with only APMC-licensed traders. With Farmers’ Produce Trade and Commerce bill, farmers can sell the produce as per their choice. So the problem of middlemen, which is one of the main loopholes of APMCs will be eliminated.
• In some states, there is a surplus of some vegetables and fruits, whereas in some other states there is less supply and more demand for them. Through one nation-one market, corporate companies can bridge this gap benefiting the consumers.
• It will attract private investments in the agricultural industry. Private investments can improve the infrastructure of the agricultural sector, which can lead to its modernization. The competition to buy the produce can fetch better prices for farmers. They may even come to the farmers to take the produce, saving the transport costs for farmers.
• Contract farming is helpful for farmers because they will get price assurance beforehand. Some companies provide seeds, fertilisers and other requirements too, which will reduce the burden of input costs for farmers.
• Essential commodities bill, 2020 can help in stabilising the prices. For example, if the onion supply is more than the demand, they can store them to prevent the price fall. This will also improve the cold storage facilities in the country.

Cons:

• The process of passing the bills is not democratic. Agriculture and trade are state subjects, but the states are not consulted before passing the bills. The main people for whom the bills are made – farmers were also not given the opportunity to voice their concerns. Even in the parliament, clear voting was not conducted. They passed the bills on a mere voice voting.
• APMCs are very helpful for small farmers not just to sell the produce but also to know the prices & production choices. Many states have amended the APMC acts to make it more liberal. The passing of farm bills 2020 may weaken the APMC system and hence can become a disadvantage to small farmers.
• There is no guarantee that the farmers’ income will be increased by these bills. If we take the example of Bihar, when the state abolished APMCs in 2006, farmers got lower prices for their produce than the Minimum Support Price (MSP). So, agricultural economists are suggesting that it is important to strengthen the APMCs, instead of transferring the responsibility to private entities.
• One nation – one market may not be much useful to small farmers, because transporting the produce requires more expenditure than selling them at the nearest APMC.
• Contract farming may turn farmers into slaves.
• Removing the restrictions on the storage of some foodgrains may lead to more imports at cheaper prices affecting the domestic farmers. And big businesses may store the foodgrains to increase the prices artificially.
• Unless the prices are regulated by the government, the market will go into the hands of big businesses putting both the farmers and the consumers at the risk of exploitation.

Challenges:

• There is a mistrust in farmers on the government for passing the bills without debate. Implementing the laws in these circumstances will be a challenge
• As the restrictions on storing some products are removed, imports of those products may increase. So, protecting domestic farmers from such imports will also be a challenge.

Theme:

• In August 2020, Union cabinet approved the proposal of the ‘National Recruitment Agency‘ (NRA). This ‘One Nation – One Exam‘ concept was proposed in the budget speech in February 2020.
• NRA will conduct the Common Entrance Test to select candidates for non-gazetted government jobs. The recruiting agencies such as SSC, RRB will conduct the next levels to finalize the candidates.
• The test will be conducted twice per year.
• At present, NRA will conduct CET for SSC, RRB & IBPS. In the coming days, it will be the common entrance test for all the 20 recruiting institutions of the central government.

Pros:

• This will reduce the burden on students. It saves time & effort. And it also saves money, as there will no need to pay a fee for multiple exams, and travel expenses.
• Single test in place of many individual tests will save time, money and human resources for the country.
• As this will be an online test, the result will be displayed immediately. This will eliminate the need for waiting to apply for the second stage of the exam or for other jobs.
• This test will reduce the burden to study different syllabuses for different exams. The single syllabus can save a lot of precious time for the government job aspirants.
• The score cars will be valid for 3 years. And job aspirants can take the exam, again and again, to improve their score till they attain the maximum age limit.
• There will be approximately 1000 centres in every district for the exam. Till now, applicants had to travel to cities to write these entrance tests. Some people couldn’t take the exam for this reason. Now, the increase in access will help many applicants in attending the exam.
• Till now, central government exams are conducted in only English & Hindi languages. Applicants who are not comfortable with both of these languages were at a disadvantage. Now, with NRA the common entrance test will be conducted in 12 languages, and later it will be conducted in all the 22 languages that are mentioned in the 8th schedule of Indian constitution. This will be very beneficial to those who want to take an exam in their mother tongue.
• It was mentioned that there will be a special focus on 117 Aspirational Districts that are in states with low social development indices. This will help in increasing their representation in central government jobs.
• The score will also be available for private companies to help them with recruitments.
• This Common entrance test will increase transparency in recruitments.

Challenges:

• Due to pandemic, the unemployment rate is increasing and hence several youngsters are in the hope that through the NRA, the government will fill many vacancies. But at present, the number of government jobs is shrinking. And as private participation in some government sectors is increasing, the number of government jobs will be further reduced. Creating more government jobs is a challenge for the centre.

• In May 2020, Indian Prime Minister Narendra Modi announced 20 lakh crore rupees economic stimulus package named ‘Atmanirbhar Bharat Abhiyan‘, with the slogan ‘Vocal for Local‘.
• It was announced with the aim to make India self-reliant and also to provide a stimulus for the economy that was hit badly by COVID-19. This package is estimated to be 10% of GDP.
• While announcing this package, Prime Minister said that this package focuses on land, labour, liquidity & laws. He also mentioned that this will benefit labourers, farmers, honest taxpayers, MSMEs & cottage industry.

Benefits:

• Atmanirbhar Bharat Abhiyan package aimed to make local products global and thereby helps Indian companies in competing in the global supply chains.
• This package allowed collateral-free loans to Medium, Small, Micro Enterprises (MSME) with a turnover of up to 100 crore rupees. In general, banks do not prefer giving loans to MSMEs due to fear of non-repayment. COVID-19 pandemic affected this sector badly. So, this package will help MSMEs very much. They can pay wages, buy raw goods with the money and so can run their businesses. Around 45 lakh companies will be benefited by these loans. Approximately 11 crore people are employed through MSMEs in India. So, their jobs can be saved.
• Structural reforms and marketing reforms in agriculture are promised. 30,000 crore rupees to small farmers through Kisan credit cards, 20,000 crore rupees to the welfare of fishermen, 13,000 crore rupees for vaccination to livestock, 1 lakh crore rupees for Agriculture co-operative societies & Farmer producer organisations, funding to post-harvest management is also mentioned – agriculture and allied sectors will be benefited.
• Space exploration to be opened for the private sector. This will benefit the Indian space industry.
• Rs. 30,000 crores special liquidity facility is announced for stressed Non-banking Finance Companies (NBFCs).
• Rs. 90,000 crores liquidity plan is announced to provide loans for power discoms.
• Migrants workers are the worst hit during COVID-19 lockdown in India. So, free food supply to migrants is promised. ‘One Nation – One Card‘ was launched, which allows people to take ration from anywhere in India.
• Shelter will be provided to migrants by the government.
• 5000 crore rupees credit facility is provided for street vendors.
• Additional 40,000 crore rupees were allotted for MGNREGA to provide employment to the returned migrants.
• More health institutions & labs will be established.

Criticism:

• The main criticism for Atmanirbhar Bharat Abhiyan package is – it is very similar to ‘Make in India’. Critics argue that a different name is given to the same scheme.
• Most of these fundings are allotted just like a normal budget. So, including them in a special package has attracted criticism.
• Many sectors are opened to private players.
• There is no mention of research & development, which is very important to take important steps in revival of the economy.
• Companies of other countries may perceive this as a protectionist policy.  They may feel apprehensive to invest in India.
• This package may not be sufficient in reviving the economy.
• Urban employment is ignored.

Background:-

• E-learning is essentially the computer and network-enabled transfer of skills and knowledge.
• E-learning applications and processes include Web-based learning, computer-based learning, virtual classroom opportunities and digital collaboration.

In Favor:-

• Through E-learning we can study from anywhere at anytime. All we need is just a computer and internet connection.
• E-learning costs less than classroom learning.
• Through E-learning we can continue studies while doing full – time job.
• We can repeat the lesson for many times if we didn’t understand the concepts.
• We can easily update new information / inventions.
• We can e-mail the doubts, and can be clarified.
• Student takes whole responsibility of himself in learning process. So that he becomes more confident.
• Students will become more flexible with computer, which is much essential in present generation.
• We can do the course in the university of foreign countries without going to there.
• Students can become comfortable in face-face to conversations which is very important in career.

In Against:-

• Through classroom learning, we can clarify our doubts immediately.
• Through classroom learning, we can increase our presentation skills.
• Through classroom learning, we can know how to behave with colleagues and superiors.
• Teachers in classroom can know whether students understand the topic or not, and explains the topic clearly using general examples.
• Unemployment increases, in result our nation’s GDP decreases.
• In the classroom, students will not only learn the subject but also interacts with other students and thereby make friends. Classroom influences the overall personality development of students. With e-learning, students will be deprived of this opportunity.
• As students have to look at screens continuously, it can strain their eyes.
• With e-learning, teachers may not be able to focus on all the students, which will be possible in the classroom. Teachers may not also understand whether students could grasp the concept or not.
• The classroom environment is lively in nature, whereas sitting in front of a computer or smartphone to listen to the classes will be boring.
• Even in this 21st century, some people do not have internet facility. So, e-learning deepens the inequality between rich and poor.
• E-learning may not create as much seriousness as classroom learning. So, students may not be motivated enough to listen to the class.
• Not all parents are technologically educated to help their children in case of any issues.
• If the device has other apps such as youtube, students may become distracted. Several students are already suffering from smartphone addiction. So, parents may not feel safe to leave the children unsupervised.

Theme:

• Due to COVID-19 pandemic, many companies allowed their employees to work from home (WFH). Some employees are happy with WFH option, but some are not comfortable with it. There are pros & cons with WFH option for both employees and companies.

Advantages for Employees:

• Travel time to and from the office will be saved.
• They can spend more time with family. This is beneficial for many especially for parents of young children.
• Even in modern times, women are expected to take care of home and children. With this responsibility, several women are forced to leave their jobs. The rise in WFH culture is a boon for them. With this more women can join in jobs again.
• The location will not be a barrier. Employees can get a job, even if the office is located in another city.
• If they want to get to know their office and colleagues better, they can attend the office at regular intervals like once a week.

Disadvantages for Employees:

• The line between work and home will be blurred. In general, employees leave work tensions at office and come home to relax. But this opportunity will be lost and it may cause anxiety. If work and personal life are not balanced well, work will extend to longer hours. This can create WFH burnout.
• Employees have to set up a work environment at home, which will incur extra expense. Even then, some people may not focus on work due to the lack of a professional atmosphere.
• Some companies are giving so much work just because their employees are working from home.
• Teamwork is a bit difficult while working from home.
• Working from home from a long periods of time can hamper social and interpersonal skills.
• Continuously staying at home may make some people feel isolated.
• For some people, setting up office space at home may not be an option due to lack of extra space in the home.
• Some jobs may require employees to be online during work hours and the continuous power supply may not be available to many.
• It can be difficult to establish connections with new colleagues because the opportunity to meet and talk with them during coffee breaks will be lost.

• Professionalism and family can be described as the two sides of the same coin as both are equally important in one’s life.
• Profession gives us an individual identity and financial security and family gives us an emotional security.
• In today’s hitech busy lifestyle it’s becoming difficult to find the time to spend with his/her family. This is causing lack of peace of mind.
• Without profession there will be no meaning of our life in present generation. Profession is not just to earn money but for our identity and self satisfaction.
• With the constant increase in the cost of living, job is a necessity for many.
• Career is important but not as much as relationships.
• Professionalism is not all about being a workaholic. It is all about knowing your priorities and acting professionally both at the workplace and at home.
• Being too much workaholic causes frustration and other psychological problems.
• Some people are not spending with their family even in holidays, to earn more money. They should remember that money is just a tool for happiness. Money can’t give loved ones.
• If we concentrate only on career, we may get fame and money but we loose many sweetest moments in our life.
• some people are settling in abroad leaving the old parents here.
• Some people are not concentrating on their children because they are giving much more priority to their job. So children may feel insecure and it may lead them in a wrong way.
• To achieve goals, sometimes we have to stay away from family. For example our soldiers are staying away from their families to protect our country. 
• If both parents are working it’s better to stay in joint family. So that children will be taken care by their grand parents or relatives.
• Plan the weekends with family by keeping the office matters aside.
• Avoid procrastination. Prioritize the things and plan effectively. This can give us free time.
• If we spend some time with family, obviously there will be no need to go to the psychiatrist for stress relief.
• The ultimate goal of everyone is being happy. So, We must make ourselves and our family happy.
• Make a habit of saying ‘no’ to the unimportant matters and spend that time with family.
• Inner peace plays a big role in balancing professionalism and family.
• If we learn to balance between career and family, our children will learn from us.

Conclusion:-

        The important thing to balance profession and family is saying no to unimportant events. By planning everything before, anyone can balance both. Only one of these can’t fulfill a person. We should remember the fact that the ultimate goal of anyone is happiness and peace.

Theme:

• In July 2020, Indian Railways has invited private companies to run 151 passenger trains on 109 train routes. Government of India is expecting Rs.30,000 crores private investment with this move. It was announced that the private trains will start from April 2023.
• India’s first private train is Lucknow – New Delhi Tejas Express, which was inaugurated in October 2019.

Benefits:

• In general, with limited investment, developing countries give priority to the welfare of the citizens over providing world-class facilities for them. So, it’s better to transfer that responsibility to private players to create a win-win situation for all.
• Passengers will get access to world-class trains with better facilities, less transit time and more safety. It was announced that these private are going to use modern technologies and require low maintenance. This is a win-win situation for both the companies and passengers.
• At present, the demand for tickets is more than supply. Many times, people are forced to be in the waiting list to travel in trains, without the certainty of the confirmation of seat. With private trains, supply can meet the demand.
• Government of India said that these trains will be manufactured in India under the ‘Make in India‘ program. If that really happens, it will create many jobs and will uplift the economy, which is desperately needed in the present time because of job losses due to pandemic.
• This can end the monopoly of Indian Railways. Private players can instill a competitive spirit and can bring more facilities at affordable rates.

Challenges:

• This step can deepen the already existing inequality between rich and poor. Indian Railways clarified that the fares in the upcoming private trains will be in the range of flight tickets. So the poor and middle class may feel excluded.
• With the use of modern technologies, many jobs can become redundant. So, private trains may not provide employment opportunities as many as the government trains provide.
• If they are not manufactured in India as promised, coaches and other equipment will be imported. In that case, it will be a loss to India as it can lead to neo-colonization.
• Even though the announced private trains constitute only 5% for now, there is no guarantee that it won’t be increased. If it is increased in the coming years, Indian Railways can suffer like BSNL & Air India, which were pushed to near bankruptcy due to the competition from private players.

Conclusion:

Private investment will help in modernising railways. It will give us access to better facilities, less transit time and more safety in trains. And it’s the government’s responsibility to regulate the prices and make the journey in them affordable. It’s also important to upgrade the remaining trains too, so that common man will not feel neglected and discriminated.

Theme:

• In December 2019, the first coronavirus case was detected in Hubai province of China. From then, it has spread to the entire world and has affected everyone’s lives and also the environment.

Impact of COVID-19 on the environment:

Positive impact:

• Due to lockdown, vehicular pollution dropped and most of the industries are forced to halt work for a few months. So, as a result, pollution reduced drastically. Fewer carbon emissions improved air quality. People could see clear skies in many areas, which were hitherto couldn’t see it. This made us think about the alternatives to the things that we are doing to our earth in the name of development.
• It is expected that global carbon emissions from the fossil fuel industry could fall by 2.5bn tonnes this year, that means a reduction of 5%.
• People are forced to stay in their homes and animals & birds are roaming freely as if they are reclaiming their space in the earth. And damaged rivers are recovering since industries are halted and hence no industrial waste and also people couldn’t get out to throw waste into the rivers. Even though all this phenomenon is temporary, this is making us ponder over the effect of people on the biodiversity in the world.
• Due to COVID-19, many people are working from home, which is impacting the environment positively.
• Consumer demand for non-essential items has reduced temporarily. So, the production of luxury goods was affected negatively. This is a plus for the environment because materialism is one of the biggest reasons for the pollution.

Negative impact:

• COVID-19 made people wear masks and gloves. Medical professionals are wearing Personal protective equipment (PPE) to protect themselves. Single-use masks, gloves & PPE are contributing to plastic waste. And the increasing number of COVID-19 patients is resulting in tons of medical waste. In most cases, this waste is not being discarded in a proper manner and is becoming a health hazard.
• Due to declining revenues in the oil & gas industry, some companies are not prioritising to fix gas leaks and hence methane emissions are increasing.
• Countries may put climate talks aside to uplift economy at a faster pace. Leaders may ignore deadlines of lowering carbon emissions, and may not concentrate on switching to green energy, because restoring the economies is the number priority for many countries right now.

Conclusion:

Even though the environment became better during our fight against COVID-19, this change is not a happy one. It is caused by millions of job losses. But this phase made us realize that nature can bounce back if we are willing to take steps. We need to put more focus on sustainable development.

Background :-

• Bollywood or the Indian film industry based in Mumbai, Maharashtra is the huge entertainment industry with over millions of viewers. A lot of fandom comes along with such a massive count of viewers. Along with fandom, controversies among actors are always the hot topics for media and the viewers as well. The recent dispute about nepotism or favoritism has set in like wildfire into bollywood recently.

Yes:-

• Movie stars of Bollywood often launch their children with much ease in the industry. Such acts serve as the roots of the debate for nepotism. This kind of act has been going on since ages. Hence, nepotism evidently exists in Bollywood.
• A heated up conversation had taken place on a talk show few months back. Celebrities like Karan Johar and Kangana Ranaut had participated in the discussion. Being a successful actress herself with films in her pockets, she openly addressed the issue of favoritism going on. She had declared Karan Johar, the producer as ‘the flag-bearer of nepotism’ on his own talk show. This incident sparked up the fact which persisted for so many long years.
• The standards of Indian cinemas fall at times because of nepotism. Producers and directors are pushing star kids to launch in their movies, failing to judge their acting skills and screen presence. This leads to flop movies and a loss of quality and standards of the Indian cinemas.
• Some talented, non biased outsiders like Ayushmann Khurrana, Priyanka Chopra, Randeep Hooda, Richa Chadda and many more had years of continuous struggle. They had spent many years for recognition of their work, critics and opportunities. This is where nepotism becomes prominent. Star kids on the other hand, have it all ready for them.
• The reason why a number of stars do not get leveled up after they start acquiring recognition is favoritism. There are a very few Bollywood stars with international recognition. Bollywood is more interested in profits and box office hits that comes in with famous faces rather than brushing raw talents.

No:-

• Nepotism among the stars can give them their first films. The rest of their carrier lies in their talent and hard work. So we cannot blame nepotism for their fandom completely.
• Actors like Alia Bhatt, Ranbir Kapoor, Kareena Kapoor Khan and a few more has never failed to entertain their viewers and win their hearts in movies. They proved that nepotism cannot bring success and awards. Hard work, dedication and talent is equally important.
• As kids of actors, directors and producers grew up watching their parents’ work. They tend to be naturally inclined to the same work. Hence, we cannot blame it as nepotism when they want enter into the bollywood industry.
• Star kids also have an upbringing which is surrounded by the Bollywood industry. This gives them an advantage of getting adjusted and having a clearer overview of the industry. This might help them learn faster and do better which an outsider might not be able to.

Conclusion:-

• Implementation of an effective, unbiased and transparent system of selecting talents can avoid nepotism.
• Nepotism on the counterpart does not always help an actor to acquire fame. Being a star kid brings in a lot of judgmental eyes and controversial effect on the actor. This might be an additional burden for her/him at times.
• Sometimes nepotism goes unnoticed. Fame comes only when the actor has some real talent up their sleeves and had put in loads of hard work.