Editorial Simplified : 13th June

Editorial Simplified : 13th Day of June 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 : The April blues


Industrial output numbers warn against policy complacency

What is the news?

The IIP number, released last Friday,

Points to be noted (Not to be remembered)

  • Headline number for industrial output, as measured by the Index of Industrial Production (IIP), showed a decline of about one per cent for April 2016.
  • In the last five years, annual industrial growth has stayed below three per cent, including a decline in 2013-14.

Declining Sectors

  • Manufacturing sector, which has a weight of over 75 per cent in IIP.
  • Food products and beverages, tobacco products and electrical machinery.
  • Capital goods sector
  • Consumer non-durables sector

Positive Sectors

  • Electricity sector
  • gems and jewellery,
  • telephone instruents,
  • commercial vehicles and diesel.
  • mining sector

Implications of such volatality

  • Retail inflation has inched up to over five per cent
  • food inflation in particular has crossed the six per cent mark,
  • Crude oil prices are on the rise, putting pressure on fuel prices and the government’s subsidy numbers.
  • Exports with a decline


With industrial output in contraction mode, the current financial year has not begun too well for the economy, and the government ought not to relax on fiscal consolidation and further reforms that can revive both investment and consumption demand.

Editorial : Internet opportunities


Internet opportunities

What is the news?

  • The Indian internet user-base reached 317 million by October 2015, overtaking the United States, courtesy year-on-year growth of 40 per cent.
  • The report by Ms Meeker, a general partner at Kleiner Perkins Caufield & Byers LLC, has come up with a report for “ internet oppurtunities “ in India.

What does the report say?

Growth should zoom in

  • voice-operated computer interfaces,
  • image-based e-commerce platforms,
  • mobile video advertising,
  • messenger-based marketing
  • communication
  • on-demand transportation.
  • live streaming of sports events with value-addition like real-time statistical updates and interactions on social media

What should be done?

  • review of the telecom policy to enable the building of better physica infrastructure.
  • removal of barriers that hinder investment into multi-brand retail and above all, legislation to ensure data security and privacy of users.
  • Data privacy

[accordion_content accordion_label=”Indian Express”]

Editorial : A rejig in time


Six months after the operationalisation of the National Infrastructure Investment Fund (NIIF), the government has indicated that the investment model would be altered.

NIIF Tweak

  • The NIIF had been conceived as a fund of funds to finance projects, both greenfield and brownfield, and also those stuck on the ground with a substantial initial corpus of Rs 40,000 crore.
  • The economic signals have been mixed, with some segments such as commercial vehicle sales and cement production showing improvement besides consumption demand, while railway freight fell 13.5 per cent, and exports continue to be on a negative trajectory.
  • Any changes in the NIIF’s investment framework which could lead to higher capital expenditure, especially in infrastructure projects, is bound to be welcomed.

Role of Government

  • State owned banks are also lobbying for a fund or a “bad bank” which will buy out some of their bad loans
  • If the vision is to create an investment vehicle which will be run professionally without undue pressure on returns like in the case of private equity funds, the investment focus ought to stay on infrastructure projects
  • That’s where long term investors such as global sovereign wealth funds are willing to partner a venture where the government too has a stake.
  • It is all the more important, therefore, for the government to act as a facilitator to get more projects off the ground.

[accordion_content accordion_label=”The Hindu”]

Editorial : Voting to defeat


The editorial studies the results of recently concluded elections to Rajya Sabha.

Important points

  • Surprise victories and shock defeats which are usually a part of direct elections were unexpectedly a part of recent elections (indirect) to the Rajya Sabha.
  • The unexpected jolts in the last round of Rajya Sabha elections were caused by by MLA’s in Congress in Haryana and Janata Dal (Secular) in Karnataka.
  • Strategies drawn at party levels failed as legislators dissatisfied with the choice of candidates or the style of decision making ensured defeat of official nominees.
  • In Haryana the strategy of Congress joining hands with Lok Dal back fired.
  • The national leadership of Congress now needs to delve into the message from Haryana.
  • In Karnataka, the Congress was the beneficiary of bickering in Janta Dal(Secular).
  • The cross voting in Karnataka is alleged to have happened due to dissatisfaction with the leadership’s style of functioning.


  • Like in some earlier Rajya Sabha elections there was evidence of wealthy candidates securing votes across party lines.
  • This has reinforced the belief that elections to Upper House continue to be influenced by power of  money.


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