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11th January, 2017: Editorial Analysis of The Hindu and other Newspapers
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Today's lesson covers the Editorials from The Hindu, Indian Express and Livemint. The topics discussed are- cold start, India-Africa relations, Fertilizer sector issues, Gender equality.

## Deepanshu Singh is teaching live on Unacademy Plus

Deepanshu Singh
Faculty- Indian Polity and Current Affairs| UPSC CSE Reserve list 2015| Consultant-G.O.I. Loves Geography Teaching since 2015

U
can you explain debt market?
Ideally Revenue from tax and its ratio in the GDP shows the development of a country. Denmark with the Highest 50% and UAE with the lowest 1.4%, clearly shows the Tax-to-GDP ration decides the level of “development”. India has a very low ratio(17.7%), even lowest among the BRICS nation, China having (22%). Tax can be collected either directly or indirectly and it is always better to collect it directly as the inequalities can be taken into account. But in India Majority of the tax revenue comes from the Indirect part(only poor people pay larger percentage of their income whereas for the rich it is a meager percentage), recent GST is a move to correct this issue. India is currently one of the biggest economies as well as fastest growing economies with a High growth but with low GDP-to-Tax ratio, meaning more revenues are spent on subsidies on welfare sectors. So, Not much resource is spent on 1) capital investments 2) on infrastructure. To rectify these issues, this gap needs to be filled by improving the tax regime so that the tax-to-GDP as well as revenues will be more which can be spent on Productive sectors.
Kindly review :)
Roobitha Masanam
3 years ago
Thank you Roobitha :)
Iqbal Yusuf
3 years ago
Facts are fine but I think you are not sticking to the question.... You must include corruption aspect
Rohit Mattu
3 years ago
Data you provided in the answer is really good .. makes your answer little much towards practicality but it will help only if you are ableto carry that data with you till the examination hall :) good structure simple :) keep writing and review mine answer strictly too >.)
Iqbal Yusuf
3 years ago
Correct implications Rohit These kind of facts can only be mentioned if you able to carry that data....
Ravi Shaw
3 years ago
"India is currently one of the biggest economies as well as fastest growing economies with a High growth but with low GDP-to-Tax ratio, meaning more revenues are spent on subsidies on welfare sectors" Hello Vignesh...Your answer is apt to the context but with a little exception to the lines quoted above from your anecdote....How wud low GDP-to Tax ratio entail more revenue being spent as subsidies on welfare or social sectors??
Daihrii Pou
3 years ago
Nice answer. Please confirm the information- India Tax to GDP ratio 17.7%? I think it is 16.6% according to economy survey 2016. thank you for sharing.
Hi Daihrii, economic survey is from 2015 and it is not the latest one I hope :)
Hi Ravi, "Tax Exemptions" , like for Education, charities etc., can be considered open ended subsidies although no cash transfer is involved. Since exemption is given to lot of these welfare based services, tax ratio is less. Hope I answered your question :)
Hi Iqbal, Can you explain Why do we have to include Corruption for answering this question?? :)
Dinkar G
3 years ago
Subsidies and public welfares schemes are also necessary. Instead the govt can focus on reducing expenditure in form of interest payment, pensions etc which are transfer payments.
3 years ago
Well written.
Shubham Sagar
3 years ago
Very well written Vignesh :) gud job
Ravi Shaw
3 years ago
Hello Vignesh.... Generally For growth calculations GDP is evaluated at factored cost in which case giving subsidies to welfare schemes won't have any bearing on GDP and so to GDP - to Tax ratio.....subsidy is an inevitable wing of inclusive growth...Correct me buddy if I m wrong? :)
Dinesh Kumar
3 years ago
Broad perspective and crispy points... Superb Vignesh...
Deeps Leelar
3 years ago
Hi Vignesh, answer is factual one, very nice, but to what extent into it?? will it help to fetch good marks??Or simple to what he wants truely??
Hi Dinkar, Government already took step on Pension I hope, now employees has to take care of their own pension schemes :)
Hi Ravi, from 2015 onwards, it is calculated on Market cost :)
Rc
Ram chavan
3 years ago
Thank you Dinesh and Ram :)
Hi Deeps, Am not sure of it as am also a beginner only. :)
Deeps Leelar
3 years ago
OK ,, let's leave on deepanshu sir
Ravi Shaw
3 years ago
Thanx for the correction Vignesh :)
Iqbal Yusuf
3 years ago
To Vignesh Need to include aspect of corruption because it is need of the hour to reform tax laws as there are so many loophole in present tax laws which concretise the ill will of tax evaders and leads to various forms of corruption..... Thanks if needed further clarification then mention....
Utsav Srivastav
3 years ago
Hi vignesh ! Nice answer too the point , kindly review mine too.
@ Iqbal I still cannot understand how Corruption is directly related to this question, see if you do not pay tax it will give rise to 2 types of money 1)Unaccounted 2)Black Money. Unaccounted money is no where near to corruption , and for Black money corruption is one of the reasons
And one more thing Iqbal, I accept corruption do come into this equation but we should always give importance to direct implications first!
Iqbal Yusuf
3 years ago
Yes Vignesh you are right that we should give importance to direct implications but brother I review your answer on the purview of present scenarios like demonetization and its aims to curb menance of unaccounted money ,black money which is afterall a corrupt practice when we see it in macroeconomics... I am not refering corruption with its generalization at this juncture like on civil servant taking bribe for work but my aim is its literal meaning that any unethical practice is corrupt pactice........ Thanks for reviewing my points you are really coporative Bro.........
But it not necessary for this question :) This is a GS 3 question not GS 4 to include ethical practices I hope :)
Alok Pathak
3 years ago
Vignesh just a concern , UAE is also developed country want to know your view point
In the Current world scenario, HDI measure the development of a country :) It is true that UAE has a very high growth but it does not mean it is "developed" :)
Alok Pathak
3 years ago
thanks Vignesh for the info
Udit Punetha
3 years ago
Point of corruption can also be added as Iqbal said, as less corruption leads to more tax compliance and concept of Laffers curve could also be mentioned. Corruption would add another dimension to the answer.
There have been a number of attempts at improving the tax system since independence. The principal objective of these attempts has been to enhance revenue productivity to finance large development plans.The prevailing treatment of the taxpayer by the tax administration requires much to be improved in reflection of global practice.. Shortcomings and Challenges--- 1)The ratio of domestic trade taxes in particular has continued to decline and this has posed a major constraint in reducing tariffs which is necessary to achieve allocative efficiency. 2) Reforms in excise duties have not reached the stage of achieving a simple and transparent manufacturing stage VAT 3)The criteria stipulated for filing tax returns has increased the number of tax returns from less than half a per cent of population to more than 2 per cent. But this has not brought about a corresponding increase in revenues. Inability to bring in the hard-to-tax groups into the net has continued to exert pressure to increase the standard exemption limit deductions Concerted efforts are necessary tocreate a proper management information system and utomating tax returns. Aboveall, tax reforms should become systemic, a continuous process to keep the economy competitive instead of being sporadic and crisis-driven
Roobitha Masanam
3 years ago
Nice attempt jyoti :)
Jyoti Singh
3 years ago
Yes I know but could not fulfill the requirement. Thanx for the read Roobitha.....!!!
Roobitha Masanam
3 years ago
Actually I dont know anything about tax systemsJjyoti. I'm from science background.. Your's and vignesh's answer looks like greek and latin for me.. I'm swtudying from your answers:)
Hi Jyoti, Nice answer :) but I think, you have to improve a lot on sentence framing. Try to use simple and short sentences.Keep writing :)
Jyoti Singh
3 years ago
Thanx for the suggestion Vignesh.I think ,it will work for me to write well......!!!
Jyoti Singh
3 years ago
Roobitha Just try to answer it.I am sure you will rock. Just jot it down whatever you know.Sometimes efforts are more imporatnt than results.....!!! All The Bestttt...
Roobitha Masanam
3 years ago
Thank you Jyoti :). So nice of you..
Jyoti Singh
3 years ago
Welcome Alwaysssss Robitha.See my answer is not perfect but at least i tried.You should also give it a shot.....!!!
Rohit Mattu
3 years ago
Hi jyoti , as Vignesh said your sentences seems to be so long and are difficult to understand and to attract to examiner try to write shot sentence which canbe easily understandable Introducion is so good :) keep writing and review mine one too .. :)
Jyoti Singh
3 years ago
Hey Rohit, You are absolutely right.I will try my level best to write a answer in a general way.....!!!
Rohit Mattu
3 years ago
Review mine one
Ravi Shaw
3 years ago
Jyoti Singh
3 years ago
Thanks Buddy.....!!!
Dinkar G
3 years ago
It will be repeating the same thing but yeah you just need to focus on simple words and sentences. The views mentioned in the answer at par with the requirement of question. Keep writing anf pls review mine also
Utsav Srivastav
3 years ago
Vvery good points Jyoti, further conclusion can be improved also by being specific on measure, review mine too.
Tax is the major source of revenue for the govt which it can utilise for public welfare. However the tax administration has not been effective. The rates of income tax were as high as 97.75% during the early 1970s which reduced tax compliance to a great extent and marked the beginning of tax evasion. The Income tax Act, 1961 is largely borrowed from the UK income tax act. The economy of both countries is different therefore law can't be same for both. In present scenario, it is imperative that tax base be increased. For this, the govt launched 'Declaration of income' scheme whereby assessees could pay a certain rate of tax on undeclared income without fear of prosecution and it was a huge success. The exchequer received ₹65,250 crore through this scheme. To increase tax compliance, maximum rate of tax should be reduced which is successful in countries like Singapore. It is observed that many people aren't willing to pay tax because the money doesn't reach back to them. The govt should reduce wasteful expenditure and use the same for development. Where positive motivation doesn't work, the govt should also ensure strict policies are present against tax evaders to maintain law and order in the country.
Dinkar G
3 years ago
Pls review
Shubham Sagar
3 years ago
Nice answer Dinkar :) you could have added more dimensions to the answer like direct-indirect taxes, complexity in rules, GST etc
Dinkar G
3 years ago
Hi Shubham. I thought of GST point after posting my answer. And regarding complexity of rules, I was aware of them but the word limit had to be stuck to. Thanks for your suggestions btw :)
Shubham Sagar
3 years ago
Yes the word limit is really a factor no doubt :)
Dinesh Kumar
3 years ago
Informative and good perspective...keep it up dinkar
Dinkar G
3 years ago
Thanks man :)
Hi Dinkar, Nice answer :) But I feel the answer is more pointing towards "why tax administration is bad" rather than "why we need to reform it"which was demanded by the question.Please correct me if am wrong.
Dinkar G
3 years ago
Yup. U r right. I misread it. Thanks for the correction :)
Tax administration is the major sector which is to be concerned at the moment.It is a sad truth that only 24 Lac people out of 125 crore have declared that their income was more than 10lac per Annum which means that the people who pays tax are only 3%.Therefore tax avoidance and became more prominent and people are escaping using the loopholes or non availability of effective tax administration.Therefore accountability is necessary that can be achieved by cashless transactions which is under progress after demonetisation. GST which is said to be a gamechanger is a welcome move by our NDA government which eliminates the multiple source of taxation and entire tax system is to be constant all over india.Then tax evasion which is more prevalent from big shots of our country which came into light after leak of Panama papers where they evade payment of tax by Base Erosion and Profit Shifting(BEPS)and Money laundering and keeping those money in tax havens like Panama Mauritius Singapore Swiss Bank etc.Therefore our government made a good move by signing Mutual Agreement Procedure(MAP) with Swiss Bank and Double Taxation Avoidance Agreement(DTTA) with Mauritius and Singapore thereby reducing the possiblity of fiscal evasion. Then another welcome move by government is by passing benami transactions prohibition amendment act 2016 which people with unaccounted income will have a tough time ahead. Therefore tax administration is to be made further stringent so that accountability is achieved so that with proper flow of of taxes to government improves the livelihood of poor farmers and deprived people and also improves government spending in health and education sector which is really pathetic at the moment....
Dinesh Kumar
3 years ago
Kindly review friends....
Rohit Mattu
3 years ago
Very good answer but i suggest you to give good concluding lines for better outllook :) keep writing and review mine one too :)
Dinesh Kumar
3 years ago
Thank you rohit.... I'll take up your points..
Hi Dinesh, Your answer is vey good :) but since we only need to comment on the question, this much explanations are not required, the size can be reduced a bit. Keep writing :)
Dinesh Kumar
3 years ago
Thank you Vignesh... I'll correct it...
Uma Devi R
3 years ago
BEPS should be highlighted and panama papers can be quoted as an example. Words like big shots degrades the quality content. You can also include tax evasion done through Stock exchanges and p-notes. Also answer can include effectiveness of CBDT,CBECs etc.
Dinesh Kumar
3 years ago
Sure uma Devi.... I'll rectify It in my future answers...
Yes there is critical need to improve tax administration in India as recent Demonetization to reduce black money which is nothing but money exempted from tax. Is stringent step by gov is indirect result of tax evasion. Recent WB report on ease of doing business rank India 172 out of 190 on " paying tax parameter ". Even this metric is based on 1st level appeals. Stringent action by IT dept transfer more appeals to ITAT ( income tax appellate tribunal )Which is not adequately resourced as data shows that 880 case pending/ member & takes at least 36 - 48 month to resolve a case. To improve this situation judges as well as branches of this tribunal should be increased. #Policy strategy of gov should be directed toward improving Indian tax environment. #Simple tax structure , lower tax rate & taxpayer friendly environment is need of hour. #Recently gov steps towards it are appreciable like General Anti Avoidance rule , Benami transaction prohibition act etc.
Hi Anjali, you have included lot of stats which is good :) It would have been much better if you could have added the "Need"for tax reforms. Because your answer explains only about the failure of the current tax structure. keep writing and reviewing :)
Anjali Janjire
3 years ago
OK I'll consider it in my next answer..thanks.
Anjali Janjire
3 years ago
BT I think as per question , we have to mention why there is need to improve tax administration and i found that these are the some reasons ... That's why I mentioned it
Anjali Janjire
3 years ago
But really thanks ...vignesh fr such actively participating & helping others to improve their answers.... Really Appreciable
Yes you are right but you have to add a conclusion to complete the answer I think :) Keep writing and reviewing :)
Anjali Janjire
3 years ago
Totally accepted...
Utsav Srivastav
3 years ago
Hi anjali nice informative answer touching some hidden facts but i would suggest to point out your points and work on framing answers so that readers should not be distracted. keep it up
Utsav Srivastav
3 years ago
Hi anjali nice informative answer touching some hidden facts but i would suggest to point out your points and work on framing answers so that readers should not be distracted. keep it up
Anjali Janjire
3 years ago
Thanks utsav ....next time I"ll keep it in mind while framing answers...
1. EDITORIAL ANALYSIS OF NEWSPAPERS IN LESSTHAN 10 MINUTES resented E n*h Jarnuary,2oT7 2017 shu chrome

2. ABOUT ME . Educator @ unacademy B.Tech. Comp. Sc. (Hons.) NTSE and Debating Champion Appeared for CSE and IFoS mains Interests: Music, Quizzing, Fitness & Photography RATE REVIEW RECOMMEND https://unacademy.com/user/deepanshu.n.singh

3. EDITORIALS COVERED IN TODAY'S LESSON The Hindu .Taking 'Cold Start' out of the freezer? Stemming the moral rot within Mind the gender gap - Reaching out to Africa . Livemint Livemint - Celebrating a fertilizer success story

4. QUESTIONS FOR ANSWER WRITING PRACTICE " Why there is critical need of improving the Tax administration in India.? Comment.

5. TH: TAKING 'COLD START' OUT OF THE FREEZER? GS-2 o The Chief of Army Staff, General Bipin Rawat, appeared to drop a bombshell by acknowledging the existence of the army's Cold Start strategy as Many defence analysts presumed the army had abandoned this limited war concept altogether. o Why this issue ?- Previously, ambiguity surrounding Cold Start, which incurred real diplomatic and security costs for India without delivering deterrence benefit. What is Cold Start-developed after 2001 Parliament attacks-it is part of the army's attempt to develop a useable, conventional retaliatory option that punishes Pakistan for terrorist attacks against India without triggering wider conventional or nuclear escalation. Aim was to create division-sized formations that could rapidly mobilise and carry out short-notice, retaliatory offensives of limited duration to quickly seize and hold Pakistani territory Cold-Start was never formally accepted by Army, though-the army said they possessed a "proactive strategy from defensive "holding" corps to formations called pivot" corps. o Implications- has significantly shaped security dynamics on the subcontinent- it was thought that it would deter future terrorist attacks- but that has not been the case- (2008 mumbai, Uri, Pathankot 2016 etc) Infact-has provided a justification for Pakistan to build up, and build out, its nuclear forces, both increasing the sheer size of its nuclear arsenal ( tactical nuclear weapons) also proof of India's hostile intentions and hegemonic designs.

6. TH: TAKING COLD START' OUT OF THE FREEZER? GS-2 o Is it feasible? - It is one thing to carry out a raid across the Line of Control with a handful of commandos. It is quite another to undertake a major cross-border incursion by armoured formations that seeks to capture Pakistani territor The army simply lacks the materiel and organisation to implement the more aggressive versions of Cold Start. sustaining offensive operations in Pakistan requires joint operations with the air force (lack of squadrons, also army air force cooperation is also beset by inter-service dysfunction) Therefore putting India in catch-22 situation- claiming a capability that it does not have, but which provides justification for Pakistan's aggressive expansion of its conventional and nuclear forces 1. 2. 3. o Need of clarity- Creates confusion in security establishments- Cold Start's status has been murky in part due to the fact that it is an army concept that has never publicy received approval from the country's political leadership o It can lead to escalation of tension in bilateral relations with Pakistan without necessarily delivering a clear benefit o Cold Start" has thus become one of the Indian Army's biggest liabilities, put security in South-Asian region at risk.

7. TH: REACHING OUT TO AFRICA GS-2 o What is this article is about? -India's relation with Kenya and East African community o Why this article in the news? - Kenyan President Uhuru Kenyatta, has participated in the Vibrant Gujarat Global Summit as a special guest and will hold discussions with leaders in Delhi beginning January 11.This is within 6 months of Prime Minister Narendra Modi's African safari in July 2016 took him to South Africa, Mozambique, Tanzania and Kenya o India-Kenya: Strategic and economic interests is what both the countries are looking for ,with more importance on economic issues and it will be the main agenda during the summit level talks. o Kenva was the home of earliest investments for India o Bilateral trade, valued at $4.23 billion in 2014-15 o major Indian corporates, including the -Tatas, Reliance, Essar, Kirloskars and Dr. Reddy's o energy, pharmaceuticals, textiles, agriculture, health, education and financial services all these areas will benefit India,for this to be a reality India needs to approve additional Lines of Credit in strategic areas to secure mutual interests o Kenya's Look East policy: China- strengthened the relations with it and also Japan- held the sixth Tokyo International Conference on African Development Summit in August 2016 in Nairobi. This was the first TICAD summit held in Africa Both Japan and India are solid on improving ties with Africa. o East African community: Africa's Regional Economic Communities Consisting of Kenya, Tanzania, Uganda, Rwanda, Burundi and South Sudan, combined GDP of$161 billion- However FDI declined between 2006-2012.

8. TH: REACHING OUT TO AFRICA GS-2 India needs to balance its strategy-Kenya has established closer ties with Uganda, Rwanda and Burundi under the umbrella of the coalition of the willing", can irk Tanzania (largest member state)- India enjoys friendly and cooperative relations with all EAC members and is in a position to enhance its engagement with the region o What India needs to do- o India successfully India-Africa Forum Summit in 2015 and an unprecedented political outreach to Africa o Trumps initial policies will not focus on Africa-Great opportunity for India to build stronger ties-India's Africa policy is broadly in line with Agenda 2063, promoted by the African Union. o UN reform, counter terrorism, climate change and international solar alliance wil take longer time to show results, so we need to discuss them again and economic cooperation must be strengthened further. in Africa summit to 2020. Nairobi, with its excellent location and conference facilities, could be an ideal choice for this meeting

9. LIVEMINT: CELEBRATING A FERTILIZER SUCCESS STORY GS-3 o India is the world's largest importer of fertilizers- imports nearly 10 million tonnes of urea annually from global suppliers representing one-third of its domestic consumption. Large dependence on Natural gas for Urea-cost-efficient gas is vital for the viability of producing urea in India ( 80% of the cost is of Gas for Urea Production) o In spite of huge potential in K-G basin in excess of 80 trillion cubic feet, by RIL,ONGC and Gujarat PCL- haven't been able to build capacity due to various reasons and disagreement on the right price of gas. o Issues-Gas prices are sticky- The benchmark is the spot or futures price at Henry Hub, a natural gas pipeline hub in Louisiana, is quite volatile and the end price paid by someone in Japan or Abu Dhabi can be substantially different from the Henry Hub price o Subsidy burden for the Govt.(\$1 trillion alone)- Farmers in India pay a highly subsidized price for urea, about Rs5,000 a tonne-a subsidy of 60-70% on the international price of urea, reimbursed to the supplier (foreign or domestic) o No fresh investments, misuse and overuse is some states like Punjab affecting soil fertility. o Steps taken by Govt- Nutrient based Subsidy is a good step, to use Jan Dhan accounts for direct payment into accounts of farmers can be tricky due to most of the landless workers.

10. LIVEMINT: CELEBRATING A FERTILIZER SUCCESS STORY GS-3 o Reforms- o Joint venture between India and Oman to produce 1.6 million tonnes of urea in Oman which commenced 11 years o importing gas expensive- convert that gas into urea in situ, and import the urea instead, since signed a long term ago, it is completely dedicated for use in India. contract to utilize gas at less than a dollar per unit, making urea one of the most cost-efficient in the world. (link TAPI, IPI pipeline) Win-win situation for all-replicated at Chabahar port now-An Indo-Iranian joint venture to produce another million tonnes of urea using Iranian gas near the port, also being built with Indian help, for export to India. o It prima facie goes against the spirit of Make In India, but makes ultimate strategic sense also tp address India's food security by encouraging agriculture-production joint ventures.