CPI-IW Base Year Revised to 2016

Why in News

Recently, the Ministry of Labour and Employment released the new series of Consumer Price Index for Industrial Worker (CPI-IW) with base year 2016.

• The new series of CPI-IW with base 2016 has replaced the existing series with base 2001.
• Earlier, the series were also revised from 1944 to 1949; 1949 to 1960; 1960 to 1982 and 1982 to 2001.

Key Points

• New Series:
  
  • The new series with base year 2016 covers the latest consumption pattern of the target population.
  • It gives more weightage to spending on health, education, recreation and other miscellaneous expenses, while reducing the weight of food and beverages.
    
    • The weight of spending on housing and clothing increased from 15.2% to 17%.
    • The weight of miscellaneous items, like education and health rose to 30.31% from 23.26%.
    • The weight of food and beverage was reduced from 46.2% to 39% and indicates an increase in disposable income.
  • The number of markets and the sample size for working class family income and expenditure surveys were increased.
    
    • The sample size was increased from 41,040 families to 48,384, also the number of selected markets for collecting retail price data was increased from 289 to 317.
  • The number of items in the index basket has increased to 463 items as against 392 items in the 2001 series.
  • The Labour Bureau is also working towards revising the index every five years.

• Effect:
  
  • The new series would not have an immediate impact on the dearness allowance (DA) as the government has freezed biannual hike in dearness allowances since January 2020 to offset the financial implications on the exchequer during the coronavirus pandemic.
    
    • The DA, a component of salary, is revised every six months to keep pace with the inflation rate.
    • For private sector workers, the central government and most states increase the variable DA component of minimum wages twice a year based on the CPI-IW inflation numbers.
  • However, the change in base year will certainly have an effect on DA calculation by june 2021, when the freezing on DA will come to end.

Way Forward

• The new series will serve as a useful reference book for researchers, academicians, scholars and all other stakeholders of CPI-IW.
• The improvements made in the new series will make it more comparable at international level. It will help in measurements of macroeconomic indicators of the Indian economy.
• As per the recommendations of International Labour Organisation (ILO), Index Review Committee (IRC) and National Statistical Commission (NSC) the base year of price index numbers should be revised at frequent intervals generally not exceeding 10 years to reflect the changes that take place in the consumption pattern of consumers.

Source: TH

G-20 Anti-Corruption Working Group Meeting

Why in News

Recently, Saudi Arabia hosted the first-ever Ministerial Meeting of the G-20 Anti-Corruption Working Group (ACWG) virtually.

• Currently, Saudi Arabia holds the presidency of G-20 and is the first Arab nation to do so.

Key Points

• G-20 Anti-Corruption Working Group:
  
  • It was set up in June 2010 at the Toronto Summit of G-20. The year 2020 marks its 10^th anniversary.
  • Objective: To prepare "comprehensive recommendations for consideration by leaders on how the G20 could continue to make practical and valuable contributions to international efforts to combat corruption".
  • ACWG has led the G-20 anti-corruption efforts coordinating the collective and national actions taken by its members.
  • It actively works with the World Bank Group, the Organisation for Economic Cooperation and Development (OECD), the United Nations Office on Drugs and Crime (UNODC), the International Monetary Fund (IMF), the Financial Action Task Force (FATF), etc.
    
    • The World Bank and the UNODC are also involved in the ACWG through the active participation and contribution of Stolen Asset Recovery Initiative (StAR) to its work, which plays an advisory role on asset recovery, anti-money laundering/counter-terrorism financing, transparency and beneficial ownership, etc.
• G-20 on Corruption:
  
  • In recent years the G-20 has played a critical role in global and national anti-corruption efforts.
  • It recognises the negative impact of corruption which, ‘threatens the integrity of markets, undermines fair competition, distorts resource allocation, destroys public trust, and undermines the rule of law’.
  • It is committed to ensuring that member countries lead by example and add value to existing international instruments and commitments.
  • The G-20 agreed on the Anti-Corruption Action Plan, 2019-2021 in Buenos Aires in 2018. In the framework of this action plan, G-20 members look forward to developing targeted actions where the G-20 can best add value in promoting international efforts in the fight against corruption.

Initiatives in India

• Central Vigilance Commission:
  
  • Though created in 1964, it became an independent statutory body in 2003.
  • Its mandate is to oversee the vigilance administration and to advise and assist the executive in matters relating to corruption.
• Prevention of Corruption Act, 1988:
  
  • The Act aims at checking corruption in big places and striking hard against corporate bribery. It seeks to establish a vicarious liability so that the actual bribe giver is also exposed.
  • It was amended in 2018 to introduce a number of new provisions including criminalizing the act of giving bribes also in addition to taking the bribe and at the same time putting in place an effective deterrence for such actions by individuals as well as corporate entities.
• Lokpal and Lokayuktas:
  
  • The Lokpal and Lokayukta Act, 2013 provided for the establishment of Lokpal for the Union and Lokayukta for States.
  • These institutions are operational in the country to bring in more transparency, more citizen-centricity and accountability in governance.
• Fugitive Economic Offenders Act, 2018:
  
  • It empowers authorities for non-conviction based attachments and confiscation of proceeds of crime and properties as well as assets of a fugitive economic offender.
• Prevention of Money Laundering Act, 2002:
  
  • Money laundering is the process of making large amounts of money generated by criminal activity, such as drug trafficking or terrorist funding, appear to have come from a legitimate source.
  • The law was enacted to prevent and control money laundering, provide for confiscation and seizure of property obtained from laundered money and to deal with any other issue connected with money-laundering in India.
• Other Related Legislation and Moves:
  
  • Right to Information Act, 2005.
  • Whistleblowers Protection Act, 2014.
  • Benami Transactions (Prohibition) Act, 2016.
  • Ratification of United Nations Convention Against Corruption in 2011.
  • Introduction of e-governance.

Source: PIB

Credit Suisse Global Wealth Report

Why in News

Recently, Credit Suisse has released the Global Wealth Report 2020.

• Credit Suisse is a financial services company based in Switzerland.
• The Credit Suisse Global Wealth Report provides the most comprehensive and up-to-date coverage of information on household wealth worldwide.

Key Points

• Global Scenario:
  
  • In 2019, total global wealth rose by USD 36.3 trillion and wealth per adult reached USD 77,309, which is 8.5% more when compared to 2018.
    
    • As a consequence, the world has been better placed to absorb any losses from Covid-19 during 2020.
  • However, total household wealth dropped by USD 17.5 trillion between January and March 2020, a 4.4% decrease compared to the value at the end of 2019.
    
    • Asia Pacific is the highest contributor of household wealth.
  • Female workers have suffered disproportionately, partly because of their high representation in businesses and industries such as restaurants, hotels, personal service and retail that have been badly affected by the pandemic.
• Indian Scenario:
  
  • Household wealth in India is dominated by property and other real assets, although financial assets have grown over time, now forming 22% of gross assets.
    
    • Stocks, bonds, bank deposits are some examples of financial assets.
  • The average wealth of Indian adults rose marginally to USD 17,420 at end-June 2020, as against USD 17,300 as of December 2019, showing some growth despite the Covid pandemic and lockdowns.
  • Wealth inequality remains quite high in India.
    
    • There is considerable poverty reflected in the fact that 73% of the adult population had wealth below USD 10,000 at the end of 2019.
    • At the other extreme, a small fraction of the population (2.3% of adults) had a net worth over USD 1,00,000.
      
      • With 4,593 ultra-high-net-worth individuals in the country as of end-2019, India came in fourth after the USA, China and Germany.
  • Between January and April 2020, unemployment rates approximately tripled in India to 24%.

Challenges Related to Wealth Inequality in India

• Distinguishing Poor and Non-poor: In developing countries such as India, despite having hundreds of pro-poor schemes, the biggest question is whether such benefit is reaching the poor.
  
  • The real challenge is in distinguishing the poor from non-poor, particularly when such data are questionable.
• Low Government Spending: The government spending on health, education and social protection in the country is low and more often than not, subsidises the private sector.
• Impact on Women: The burden of inequality continues to be borne by India’s women, they continue to be tasked with bearing the burden of care work, thus withholding their entry into the labour force.
• Impact on Vulnerables: While traditionally vulnerable communities, such as the Scheduled Castes and Scheduled Tribes, are catching up with the rest of society in primary education, they are falling further behind when it comes to advanced (12 years or more) education.
  
  • Most now have access to mobiles but few have computers. And too many people are still just one illness away from poverty, as per the UNDP’s 2019 Human Development Report (HDR).
• Climate change will only exacerbate the inequality.

Way Forward

• Given the damage inflicted by Covid-19 on the global economy, it seems remarkable that household wealth has emerged relatively unscathed. Wealth acts as a form of self-insurance that households can draw upon when times are hard.
• Rising economic inequality has become an important issue for overall development of India with the focus being shifted to ‘inclusive growth’ in the past years.
• By increasing social spending, changing gendered attitudes towards care work, and ensuring the wealthy pay their share, the government can reduce inequalities.
• A focus on rights-based entitlements (for instance, work through the Mahatma Gandhi National Rural Employment Guarantee) and technological innovations (such as to open bank accounts and facilitate digital payments to beneficiaries - JAM Trinity) have gone some way towards improving living standards. New insurance schemes for universal health coverage (Ayushman Bharat), crop-failure and accidents (Pradhan Mantri Fasal Bima Yojana) reflect a momentum for action to tackle inequality. These measures are absolutely crucial in reaching those left furthest behind.

Source: IE

NAG Missile: Anti Tank Guided Missile

Why in News

Recently, the final user trial of 3^rd generation Anti Tank Guided Missile (ATGM) NAG was carried out successfully from Pokhran range in Thar desert (Rajasthan).

Key Points

• Developed By: Defence Research and Development Organisation (DRDO)
• Features:
  
  • The NAG missile has been developed to strike and neutralise highly-fortified enemy tanks. It also has night strike capabilities.
    
    • ATGMs are missile systems that can strike and neutralise armoured vehicles such as tanks.
  • It has a minimum range of 500 metres and maximum range of 4 km.
  • As a third-generation ‘fire and forget’ category system, NAG uses an imaging infra-red seeker to lock on to the target before launch.
  • In the top attack mode, the missile is required to climb sharply after launch and travel at a certain altitude, then plunge on top of the target. In the direct attack mode, the missile travels at a lower altitude, directly striking the target.
  • It has a capability to defeat Main Battle Tanks (MBT) equipped with composite and reactive armour.
  • The NAG missile carrier (NAMICA) is a Russian-origin BMP-II based system with amphibious capability.
    
    • BMP-II is a mechanized infantry fighting vehicle.
• Version of NAG ATGM: DRDO is currently in the final stages of the development of the helicopter-launched version of Nag ATGM, called the Helina, which has undergone successful tests in 2018.
• Significance:
  
  • With this final user trial, Nag will enter the production phase.
    
    • The missile will be produced by Defence Public Sector Undertaking (PSU) Bharat Dynamics Limited (BDL), whereas Ordnance Factory, Medak, will produce the NAMICA.
  • This means that the Indian Army will no longer have to import this weapon from either Israel or the USA for the range of four kilometres.
    
    • It was due to unavailability of a credible anti-tank weapon, that India had to buy around 200 pieces of Spike anti-tank missiles from Israel as emergency purchases after the aggression by the People's Liberation Army (China) in Ladakh.
  • Further, the army is currently using second generation Milan 2T and Konkur ATGMs and has been looking for about third-generation missiles, which are important for stopping advancing enemy tanks.
• Other Missile Systems: Missiles have been developed by India under ‘Integrated Guided Missile Development Program’.

• Other Recent Tests:
  
  • The NAG ATGM trial was in continuation of a series of missile tests conducted by the DRDO in the last one-and-a-half months.
    • Among these trials were two other ATGMs - the Laser-Guided ATGM, and the Stand-Off Anti-Tank Missile (SANT).
  • DRDO, successfully tested India’s first indigenous anti-radiation missile named Rudram, Supersonic Missile Assisted Release of Torpedo (SMART) system, nuclear capable missile Shaurya, Naval version of the BrahMos and Hypersonic Technology Demonstrator Vehicle (HSTDV).

Source: PIB

Monoclonal Antibodies for Covid-19

Why in News

Recently, the International AIDS Vaccine Initiative (IAVI) and Serum Institute of India (SII), Pune announced an agreement with Merck, a science and technology company, to develop SARS-CoV-2 neutralising monoclonal antibodies (mAbs), which will be used to address the Covid-19 pandemic.

• IAVI is a non-profit scientific research organisation dedicated to addressing urgent global health challenges. It is headquartered in New York, USA.
• SII is the world's largest vaccine manufacturer.

Key Points

• Monoclonal Antibodies:
  
  • Antibodies are proteins produced naturally by the immune system that target a specific foreign object (antigen). They are called monoclonal Antibodies (mAbs) when they are produced by clones derived from a single parent cell.
  • They are man-made proteins that act like a human antibody in the immune system. They are made by cloning a unique white blood cell.
  • mAbs have monovalent affinity, it binds only to the same epitope i.e. the part of an antigen that is recognized by the antibody.
  • They are designed to perform many roles, like they can be used to carry drugs, toxins, or radioactive substances directly to affected cells.
  • mAbs are used to treat many diseases, including some types of cancer.
• mAbs and Covid-19:
  
  • Neutralising monoclonal antibodies (mAbs) against SARS-CoV-2 were co-invented by IAVI and Scripps Research.
  • They are widely considered to be promising candidates for Covid-19 treatment and prevention.
  • Encouraging results for Covid-19 antibody treatment have emerged from preclinical research and from initial clinical trials.
  • mAbs also have the potential to play an important complementary role to Covid-19 vaccines.
    
    • It can be used both for treatment and potentially for prevention, especially for those individuals who, due to age or medical conditions, may not benefit from vaccination.

Way Forward

• Given that many experts speculate that Covid-19 will become an endemic disease, and given the severity of symptoms in a significant proportion of people affected, effective therapies will be necessary to treat those who remain unvaccinated or whom vaccination does not protect.

Source: TH

INS Kavaratti

Why in News

Recently, INS Kavaratti has been formally inducted into the Indian Navy at the Naval Dockyard in Eastern Naval Command (ENC), Visakhapatnam.

Key Points

• It is named after the capital of the Lakshadweep group of islands.
• It is the last of the four indigenously built Anti-Submarine Warfare (ASW) stealth corvettes built under Project 28 (Kamorta class), by Garden Reach Shipbuilders and Engineers (GRSE), Kolkata.
• The ship is regarded as one of the most potent ASW stealth corvettes to have been constructed in India as it joins three other ships of the same class INS Kamorta, INS Kadmatt and INS Kiltan, at the ENC.
  
  • Its induction is a game-changer in the eastern seaboard, especially with the Chinese submarines trying to increase their presence in the Indian Ocean.
• It has enhanced stealth features resulting in reduced Radar Cross Section (RCS) achieved by the superstructure along with optimally sloped surfaces.
  
  • INS Kavaratti and INS Kiltan are the first two major warships in the country to have the unique feature of the superstructure made of carbon fibre composite material.
• It has high indigenous content with the state-of-the-art equipment and systems to fight in Nuclear, Biological and Chemical (NBC) warfare conditions.
  
  • Some of the major equipment/ systems developed indigenously include Combat Management System, Torpedo Tube Launchers and Infra-Red Signature Suppression System, etc.
  • The high level of indigenisation incorporated in the production accentuates the objectives of Atmanirbhar Bharat Initiative.
• The ship is the reincarnation of the erstwhile Arnala Class missile corvette of the same name, INS Kavaratti-P 80, a ship that played an important role in the liberation of Bangladesh in 1971.

Source: PIB