‘Resolving trade tensions immediate priority’

The global economy is at a “delicate juncture” which will require central banks to maintain stimulus and governments to resolve trade disputes quickly, the IMF warned. “The immediate priority is to resolve the current trade tensions,” IMF chief Christine Lagarde urged in a blog post aimed at the G-20 finance ministers and central bankers as they prepare for a meeting this weekend. She said the exchange of tariffs between the US and China will put the brakes on growth in both countries and cut a few points off global growth as well. “These are self-inflicted wounds that must be avoided. How? By removing the recently implemented trade barriers,” she said. The finance officials are meeting just weeks after US-China talks collapsed amid accusations of broken promises and more punishing tariffs.

India to have 88 million 5G connections by 2025

Global telecom industry body GSMA expects India to have 920 million unique mobile subscribers by 2025, which will include 88 million 5G connections. “5G connections in India are forecast to reach 88 million by 2025. This will leave India trailing regional peers such as China, which is set to see almost 30 per cent of its total connection base on 5G by 2025,” said the GSMA Intelligence report. It said there were close to 750 million unique subscribers at the end of 2018 and expected to reach almost 920 million by 2025. According to GSMA, the data consumption pattern in India on 4G network supports in time uptake of new 5G devices and services. However, the emergence of 5G ecosystem in India will depend on the ability of telecom operators to invest in networks, which requires favourable support on policy and regulatory fronts.

RBI cuts rates in a bid to boost growth

To give a boost to the sagging economy, the RBI on June 6 lowered its benchmark lending rate to a nearly nine-year low of 5.75 per cent. The RBI also changed its monetary policy stance to accommodative, leaving space for future rate cuts. The third reduction in the benchmark lending rate or repo rate in the past five months is expected to bring down EMIs on home and auto loans, and reduce the debt repayment burden on corporates. In all, the central bank has reduced the benchmark lending rate by 0.75 percentage points since February. With the 0.25 percentage point cut on June 6, the repo rate, at which the central bank lends to the system, comes down to 5.75 per cent, as was widely expected. Earlier, the repo rate was at 5.75 per cent in July 2010.

A new way to assess Central, state Budgets

Industry body CII said it has come out with a Fiscal Performance Index to assess the quality of Budgets presented by the Centre and states. The index has been constructed using UNDP’s Human Development Index methodology, CII said, adding the proposed composite index of fiscal performance comprises six components. These include 1. Quality of revenue expenditure: measured by the share of revenue expenditure other than interest payments, subsidies, pensions and defence in GDP. 2. Quality of capital expenditure: measured by share of capital expenditure other than defence in GDP. 3. Quality of revenue: ratio of net tax revenue to GDP (own tax revenue in case of states). 4. Degree of fiscal prudence I: fiscal deficit to GDP. 5. Degree of fiscal prudence II: revenue deficit to GDP and 6. Debt index: Change in debt and guarantees to GDP.

FDI in services sector up 37% in 2018-19

Foreign direct investment in the services sector grew 36.5 per cent to $9.15 billion in 2018-19, according to the Department for Promotion of Industry and Internal Trade (DPIIT). The sector attracted FDI worth $6.7 billion in 2017-18. The services sector includes finance, banking, insurance, outsourcing, R&D, courier, tech testing and analysis. The government has taken several measures like fixing timeliness for approvals and streamlining procedures to improve ease of doing business in the country and attract foreign investments. Increasing FDI inflows in services sector is vital as it contributes more than 60 per cent to the GDP. The sector accounts for about 18 per cent of the total FDI received between April 2000 and March 2019.

World Bank retains India’s growth rate at 7.5%

India’s economy is projected to grow at 7.5 per cent in the next three years, supported by robust investment and private consumption, the World Bank has forecast. The bank in its Global Economic Prospects said that India is estimated to have grown 7.2 per cent in fiscal year 2018-19, which ended March 31. A slowdown in government consumption was offset by solid investment, which benefited from public infrastructure spending. As against a growth rate of 6.6 per cent in 2018, China’s growth rate in 2019 is projected to be dropped to 6.2 per cent and then subsequently to 6.1 per cent in 2020 and 6 per cent in 2021, the World Bank said. With this, India will continue to retain the position of being the fastest growing emerging economy. And by 2021, its growth rate is projected to be 1.5 per cent more than China’s 6 per cent.

Cabinet panels to spur investment, jobs

The Centre on June 6 announced the constitution of various Cabinet committees, including one on economic affairs. On June 5, the government had constituted committees on investment and growth to spur economic growth, and on employment and skill development to deal with the issues of unemployment. It was perhaps for the first time that the Cabinet committees on the two issues have been set up. The data released by the labour ministry in May showed 7.8 per cent of all employable urban youth being jobless, while the percentage for rural areas was 5.3 per cent. The unemployment rate in 2017-18 was 6.1 per cent, corroborating the pre-election leaked report that had claimed joblessness at a 45-year high.

India ranks 95 in gender equality index

India ranked 95th out of 129 countries in a new index that measures global gender equality, looking at aspects such as poverty, health, education, literacy, political representation and equality at the workplace. The new index includes 51 indicators across 14 of the 17 official Sustainable Development Goals (SDG) and covers 129 countries across all regions of the world. The index has ranked India at 95 among 129 countries. India’s highest goal scores are on SDG 3 of health (79.9), SDG 2 of hunger and nutrition (76.2) and SDG 7 of energy (71.8). Denmark was ranked at first place and Chad at 129th place. China ranked at 74th position, Pakistan at 113, while Nepal and Bangladesh at 102 and 110 respectively, the index said.

Services sector activity growth slips in May

India’s services sector activity increased at the slowest pace in a year in May, as disruptions arising from the general election hampered growth of new work intakes, a monthly survey showed. The Nikkei India Services Business Activity Index fell to 50.2 in May, from 51.0 in April, pointing to the slowest growth rate in the current 12-month stretch of expansion. The services PMI was in the expansion territory for the 12th straight month. In PMI parlance, a print above 50 means expansion, while a score below that denotes contraction. The survey noted that there were signs that the slowdown may prove temporary as companies stepped up hiring and became more confident about future prospects. The Nikkei India Composite PMI Output Index, which maps both the manufacturing and services industry, was at 51.7 in May, unchanged from April.

Sri Lanka proposes new law on fake news

Sri Lanka will introduce five-year jail terms for those caught spreading fake news and hate speech on social media following a surge in online vitriol and disinformation after the Easter suicide attacks. The cabinet approved a proposal which will also see offenders fined one million rupees. It did not immediately release a definition of the two offences, but said the penal code will be amended to introduce the new penalties. The move follows repeated allegations that platforms such as Facebook, Twitter and Whatsapp have been used to spread online hate in a country where ethnic divisions still linger after decades of war. Last month, Singapore’s parliament passed laws to combat fake news that will allow authorities to order the removal of content and could see those convicted of violations imprisoned for up to 10 years.

Pioneering cancer researcher Lynch dies

Henry Lynch, a pioneering cancer researcher who was among the earliest to probe its genetic causes, has died at the age of 91. During the 1960s, Lynch was one of the first researchers to examine familial susceptibility to certain cancers at a time when the prevailing wisdom held that environmental factors were the main driver. His death on June 2 was announced by the American Society for Clinical Oncology (ASCO). His early grant applications were frequently rejected but he persisted, founding in 1984 a hereditary cancer registry at Creighton University in Omaha, Nebraska, which now contains the cancer histories of more than 3,000 families. ASCO said among his most notable achievements was the identification of a strain of inherited colon cancer that was named ‘Lynch syndrome’ after him in 1984.

11,000 kg garbage removed in Everest clean-up

A total of 11,000 kg garbage and four dead bodies were removed from the Mount Everest during a two-month long cleanliness drive conducted by the Nepal government. The garbage, which included empty oxygen cylinders, plastic bottles, cans, batteries, food wrappings, faecal matter and kitchen waste, was flown to Kathmandu in army helicopters from the Everest base camp. A ceremony was conducted to officially conclude the cleaning campaign, which began on April 14, to bring back tonnes of trash from the world's highest peak that has lately turned into a “garbage dump”. Besides the Nepal Army, the other agencies involved in the cleaning expedition included the Nepal Mountaineering Association, the tourism ministry and the Everest Pollution Control Organisation. Every year, hundreds of climbers, Sherpas and high altitude porters make their way to Everest, leaving behind tonnes of both biodegradable and non-biodegradable waste on the highest peak. 

Pak military to voluntarily cut defence budget 

In an unprecedented voluntary move, Pakistan’s military has decided to cut the defence budget for the next fiscal year amid an austerity drive launched by the government to solve the cash-strapped nation’s economic woes. Major General Asif Ghafoor, Director General (DG) Inter Services Public Relations (ISPR) — the media wing of the military, said that voluntary cuts in the defence budget for the next fiscal year would not be at the cost of defence and security. “We shall maintain effective response potential to all threats. Three services will manage the impact of the cut through appropriate internal measures. It was important to participate in development of tribal areas & Balochistan,” Ghafoor said. Prime Minister Imran Khan said that he was very appreciative of the Pakistan military’s “unprecedented voluntary initiative of stringent cuts in their defence expenditures” especially in light of the country’s financial situation.

Navy formulates green conservation roadmap

The Indian Navy has formulated an environment conservation roadmap aimed at reducing energy consumption and diversifying its supply, an official statement said. The Indian Navy Environment Conservation Roadmap (INECR), with specific action plans, covers the entire gamut of operations, maintenance, administration and infrastructure, and community living. The roadmap envisions reduction in energy consumption and diversification of energy supply as key result areas, it said. Under the INECR, numerous policies aimed at reduction of energy consumption and environment sustenance have been formulated and disseminated to all ships as well as shore establishments, the Navy said. As a progressive step, the Navy has pledged 1.5 per cent of its ‘Works’ Budget towards renewable energy generation, it added.

Alarm over microplastics in food chain

Raising fresh questions over how plastic waste could directly impact our health, a new study has found that humans eat about 52,000 particles of microplastic every year. Microplastics - tiny plastic shards broken down from man-made products such as synthetic clothing, car tyres and contact lenses - are among the most ubiquitous materials on the planet. They have been found on some of the world’s highest glaciers and at the bottom of the deepest ocean trenches. Several previous studies have shown how microplastics may enter the human food chain, including one last year that found them in nearly all major bottled water brands sampled. Scientists found that an adult male could expect to ingest up to 52,000 microplastic particles each year. Taking into account the pollution we breathe in, that figure rose to 121,000 particles - equivalent to over 320 particles every day.

Non-ODF villages are ‘more polluted’

Groundwater contamination is 12.7 times more likely in villages practising open defecation as compared to those declared open-defecation free (ODF) under the Swachh Bharat Mission, a UN study has revealed. The UNICEF report analysed 752 samples from 12 ODF and and an equal number of non-ODF villages across West Bengal, Bihar and Odisha. According to the study, soil and food in the non-ODF villages were 1.1 and 2.16 times, respectively, more likely to be contaminated with human faeces in comparison to ODF villages. It also revealed that in non-ODF villages, piped water was 2.40 times and household water was 2.48 times more likely at risk of faecal contamination.

Newsmaker

Renowned scientist and cyclone warning specialist Mrutyunjay Mohapatra has been appointed as the chief of the India Meteorological Department (IMD). Mohapatra and his team at the cyclone warning division of the IMD have earned praise for their accurate forecasts on cyclones, its wind speed and likely impact on life and property.