The Hindu Editorial News Analysis 8th Dec 2017

Table of Contents

Getting back on track

GDP numbers are good but for growth to pick up further,
we need to push private investment
GDP has grown at 6.3% year on year compared to 5.7% in the first quarter
Signs of revival?
Can we expect a further rise in the growth rate in the rest of the year?
We need to look at sectoral growth rates.
The most encouraging sign is the performance of the manufacturing sector which grew
at 7% against 1.2% in the previous quarter.
Previous year, the growth rate was 7.7%. It appears that the manufacturing sector has
come out of the disruptions caused by demonetisation + implementation of the GST.
Public administration grew at 6%, much lower than the previous quarters but still
reasonably high
Electricity sector has done well with a growth rate of 7.6% compared to 7.0% in Q1
Growth rate in agriculture was low at 1.7%
Construction sector grew at 2.6% only.

Discouraging signals

Most discouraging sign is the behaviour of the Gross Fixed Capital Formation (GFCF).
Ratio of GFCF to GDP has fallen from 27.1% to 26.4%.
Due to a decline in private investment
Without a rise in the private investment rate, sustained high growth cannot be maintained.
Government has set up the National Statistical Commission to give credibility to the
Indian Statistical System

The road ahead

Glitches caused by GST have been overcome.
Another factor of growth is exports- India’s export performance has picked up in current year
For growth to pick up in a strong way, policymakers need to address the issue of
- 1)-Declining investment rate.
- 2)-As pointed out already, GFCF ratio has fallen to 26.4%- 201415, the GFCF rate was 30.8%
Push up private investment, even as the pace of public capital expenditures, which have
shown a pick up recently, is maintained.

Underwater reinforcements

50th anniversary of the Navy’s submarine arm
Sunil Lanba provided the appropriate context for the 50th anniversary of the Indian Navy’s submarine arm, which falls on December 8
Detailed an ambitious acquisition plan for the Indian Navy that includes six diesel
electric Scorpeneclass submarines; three SSBNs (nuclearpropelled submarines equipped with a nucleartipped ballistic missile) to follow INS Arihant; and six SSNs
(nuclearpropelled submarines) used in an attack role
India acquired its rst submarine, the INS Kalvari, on December 8, 1967, six years after
the Navy acquired its first aircraft carrier in 1961.
In the intervening decades, the nation and its Navy have graduated to designing
and indigenously building SSBNs — the INS Arihant
For the record, India is the first country in the world to move straight to designing and
building an SSBN, without moving up the scale from conventional boats and then SSNs.

On taxing maintenance money

Maintenance money paid by parents for the welfare of their minor child be exempted from
income tax?
How to curb black money in welfare funds for minors
Law Commission of India after the Punjab and Haryana High Court found that it is
“desirable” that Section 64 (1A) of the Income Tax Act of 1961 be amended to exempt the
interest accrued on maintenance money an estranged parent pays for his or her minor child.
Payal Mehta v. Sanjay Sarin (2016) was that interest on the amount of maintenance money
deposited in the name of a minor child by the parent should not be subjected to tax.
Such income should not be clubbed with the income of either of the parent for the
purpose of imposing tax.
High Court insisted that such an exemption should be created.
Minor in whose name some business- Law Commission

1)-Such an order does not give any right to either of the child’s parents under any statute.

2)-Second, of the amount of maintenance are of a temporary nature.

3)-Third Such an exemption would open the flood gates to evasion of tax.

Prelims Focus Facts-News Analysis

Page-1–Aadhaar link deadline for subsidies to be March 31
Government intends to issue a notification on Friday extending the deadline for mandatory Aadhaar linking from December 31, 2017, to March 31, 2018, Attorney General of India K.K. Venugopal submitted before the Supreme Court
extension would include 139 government subsidies, benets or services, which are funded out of the Consolidated Fund of India as per Section 7 of the Aadhaar Act of 2016.
Constitution Bench will hear pleas against identity scheme next week
Page-1- Ministers not under RTI: Delhi High Court
Court overturns CIC verdict, says ‘direction issued by panel outside its scope‘
Delhi High Court has set aside the Central Information Commission order declaring
Ministers as “public authorities” and answerable under the Right to Information law
Directions issued by the CIC are also wholly outside the scope of the matter before the CIC
Army UAV crashes in Chinese territory
An unmanned aerial vehicle (UAV) of the Army that crashed into the Chinese
side of the border was on a regular training mission and lost contact with ground
control due to technical problem, the Defence Ministry said here in a statement.

Page-7- A woman doesn’t mortgage herself to a man with marriage, asserts CJI
‘Retains religious identity even if she marries outside her community’
A woman does not mortgage herself to a man by marrying him, and she retains her
identity, including her religious identity, even after she exercises her right to marry
outside her community under the Special Marriage Act, Chief Justice of India Dipak Misra
The 1954 Act is seen as a statutory alternative for couples who choose to retain
their identity in an interreligious marriage.
Special Marriage Act confers on her the right of choice. Her choice is sacred.
I ask myself a question: Who can take away the religious identity of a woman?
The answer is only a woman can choose to curtail her own identity,” said Chief Justice
Misra, heading a fivejudge Constitution Bench.
Page-11- UNESCO names Kumbh Mela Intangible Cultural Heritage
After ‘yoga’ and ‘Nouroz’, Kumbh Mela/ KumbhMela, the largest congregation(मंडली) of
pilgrims on the planet, has been listed as an Intangible(अमूर्त) Cultural Heritage under UNESCO (United Nations Educational, Scientific and Cultural Organisation).
Page-18- Neapolitan pizzatwirling wins UNESCO honour
Neapolitan pizza is a Traditional Speciality Guaranteed (TSG) product in Europe, the art of its making is included on UNESCO‘s list of intangible cultural heritage.
No change in our policy on Palestine, says India
India has traditionally supported an independent Palestine as part of a two state solution.
Australia legalises samesex unions
Gay couples will be able to legally marry in Australia after a samesex marriage Bill
sailed through Parliament
Nepal polls record 67% turnout in phase 2
65% voters had exercised their franchise on November 26.
No court stay on linking Aadhaar to services: UIDAI
The deadline for Aadhaar linkage for bank accounts, is currently Dec. 31, 2017