Editorial Simplified : 13th April

Editorial Simplified : 13th day of April 2016

This Series of posts covers the essential Editorial from prominent newspapers. The Editorial from the newspapers are compiled by the Subject Teachers form the Academy and provided in notes format so that the aspirants does not waste their precious time in sifting through the newspapers. 

The aspirants are advised to bookmark this page for future reference 

Click on the tab below to read the Editorial Simplified for each newspaper

[accordion_content accordion_label=”Business Standard”]

Editorial : AirAsia, Indian?

Context :

Issue of foreigners controlling Indian airlines is gaining momentum. The article discusses the problem with the present law that dictates the present partnerships between Indian and Foreign air carriers.

What’s the law presently :

  • In 2012, liberalised FDI rules in Indian carriers allowed 49 per cent ownership by foreigners.

What’s the current issue :
Domestic company AirAsia being controlled by Malaysia-based AirAsia Bhd.
What’s the broader debate :

  • Allegations that the domestic shareholders are bound by an excessively detailed brand licence agreement.
  • That operating requirements in the brand licence agreement leave no control vested with domestic shareholders.
  • It is against the existence of a level playing field.

 What could be done :

AirAsia must be asked to submit its brand licence agreement to shareholders to be scrutinized by them to ensure it did not violate control laws.

 What’s the law in other countries :
The US and the European Union signed an agreement under President Obama allowing foreign ownership of each other’s domestic airlines.

Editorial : Mid-course correction

Context :

The Index of Industrial Production (IIP) has shown some signs of revival. This article discusses what is IIP and various other things related to it.

What is IIP :

  • In India, IIP is a representative figure which measures the general level of Industrial activity in the country.
  • Currently IIP comprises 682 individual items.
  • These items can be divided into two ways as follows:

Sector wise Composition :
Three sectors

  • Mining (14.1% weight)
  • Manufacturing (75.5% weight)
  • Electricity (10.4% weight)

Use wise Composition
Four sectors

  • Basic goods
  • Capital goods
  • Intermediate goods
  • Consumer goods.
    • Consumer durables
    • Consumer non durables

 It’s equally important to know what are core industries-
 Core Industries (comprise 38% of IIP) :
The eight Core Industries are

  • Fertilizers
  • Electricity
  • Refinery Products
  • Natural Gas
  • Steel
  • Cement
  • Crude Oil
  • Coal

Why IIP is low :

  • Capital Goods sector is not picking up
  • Investments are yet to see a pick-up in the economy
  • Contraction of consumer non-durables sector

What could be done to revive the Industrial Production :

  • Increase capital investments.
  • Liberalise land and labour laws.
  • Legislate key laws like GST, Bankruptcy code.
  • Cut Interest rates further.

[accordion_content accordion_label=”Indian Express”]

Editorial : JUST PRESS PLAY 

Context :

Natinal Payment Corporation of India (NPCI) launched Unified Payment Interface (UPI) on Monday.

Additional Info (What is UPI) :

The UPI is a system for instant, online bank payments. UPI eliminates the need of knowing the recipient’s name, their bank account number, and IFSC code (or bank branch). UPI is built on top of the IMPS( Immediate Payment Service),, which you may have used to transfer money between bank account. Like IMPS, UPI is immediate, and works 24×7, through the year, unlike NEFT or RTGS services, which have specific working hours. The UPI can also be used for shopping online instead of entering your debit card number, expiry date, and CVV code, followed by waiting for the OTP, you’d just enter your UPI ID, and get an alert on your phone to verify the transaction. Because it’s using the phone to verify transactions, UPI is secure – someone else can’t just enter your ID and spend your money.

  • UPI will simplify payments and leverage the deepening mobile penetration in the country
  • Indian banks need structural reforms after bad publicity about Non Performing Assets, willful defaulters list and loan waivers.
  • After 2014 RBI gave 10 licenses to small finance banks ( commercial banks with focus on unserved sectors) and 11 licenses to payment banks (which only deal with deposits and remittances, not credit).
  • RBI governor has talked about banking revelation and use of technology can be an ingredient as well as mean to do it.

Editorial : Keep talking

Context :
American secretary of Defense recent visit to India
China Fear ?

  • US increasingly coming closer to India; case in point are bilateral defense partnership and joint strategic vision statement of 2015
  • Indian Defense Minister however dismissed plans of joint patrols while on visit to US as Indian does not want to be seen taking sides (against China)

Defence Sector needs Overhaul

  • Defense Trade and Technology Initiative has ties with Make in India which seeks co development and co production rather than mere selling and buying
  • Indian need to modernize its military and needs air force need fleet replenishment. US export legislation and congress oversight might hinder full implementation of Make in India but India is in need for DTII
  • Carter signed Logistics Exchange Memorandum of Agreement which allows mutual refueling and supplies exchange
  • DTII has also been enhanced by including new bilateral Maritime Security Dialogue


[accordion_content accordion_label=”The Hindu”]

Editorial : The power of one against many

Context :
The State Assembly elections of Tamil Nadu have an interesting contest this time.
Important points– :

  • The AIADMK party led by Jayalalitha has vowed to go alone in the elections without any eminent coalition partner. 
  • It has just set aside 7 out of 234 Assembly seats for allies.
  • The strategy of Jayalalitha seems to be of maximising the yield by contesting on as many seats as possible. A similar strategy had worked for her in Lok Sabha elections where her party won 37 out of 39 seats.
  • Another development in Tamil Nadu is the third front developed and led by Vijyakant of Marumalarchi Dravida Munnetra Kazgham of Vaiko.
  • The major opposition is offcourse the Karunanidhi led DMK. 
  • The DMK is suggested to gather anti-incumbency votes. 

Expectation of editor :

  • The DMK has Congress as its ally and it is the biggest opposition any way. So it will gather anti-incumbency votes.
  • The third front , DMDK etc will cut into pro-AIADMK vote too. 
  • Polarisation is expected to work in favour of DMK. 
  • Jayalalitha seems to be banking on the multiplicity of her opponents in the first past the post system.

Editorial : Keeping tigers in the green zone

Context :

The Tiger population has recently risen. The issue now moves on to improvement in environment and habitat of tigers.

Important points : 

  • World Wildlife Fund and Global Tiger Forum have estimated an increase of 600 tigers worldwide. This indicates good conservation policy.
  • But absolute numbers do not define health of the tigers across nations. Terrible counting mistakes have also been made in the past eg Sariska reserve count.
  • Indian Environment and forests Ministry came up with better techniques in 2014 such as photographic  technique.
  • India will now host third ministerial conference on Tiger Conservation, it should now commit to scientific methods even more. 

Conclusion :

  • In future tigers will survive only if countries can maintain core habitats, ensure genetic exchange and control poaching. 
  • The lack of political will to reduce industrial pressure on  forests is evident. It needs to be tackled and forests saved.
  • Mitigating damage through benign alternatives is vital.
  • India by assuming such green leadership and effectively protecting tigers can demonstrate to other countries how a populous country could preserve wildlife and provide life sustaining ecosystem services to all.
  • The editor suggests independent scientific organizations should be included as partners in research in protected areas.
  • Effective conservation always demands transparency.


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