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Insights Daily Current Affairs, 02 June 2018

Insights Daily Current Affairs, 02 June 2018


Topic 1:

GS2:Functions and responsibilities of the Union and the States, issues and challenges pertaining to the federal structure, devolution of powers and finances up to local levels and challenges therein.


Centre notifies Cauvery authority


Context: Union government on Friday issued a notification for the Cauvery Water Management Authority

Background: On 16th February, 2018   the apex court had directed the government to form the authority within six weeks. The Supreme Court through its verdict marginally increased Karnataka’s share of Cauvery water, reduced the allocation for Tamil Nadu and sought to settle the protracted water dispute between the two southern states.

Composition of Cauvery Water Management Authority: It would comprise a chairman, eight members besides a secretary. Out of eight members, two each will be full-time and part-time members, while the rest four would be part-time members from states.

Mandate of Cauvery Water Management Authority:

  • To monitor the storage, apportion shares, supervise operation of reservoirs and regulate water releases with assistance of the regulating authority.
  • The authority has also been tasked to advise the states to take suitable measures to improve water use efficiency, by way of promoting micro-irrigation (drip and sprinkler), change in cropping pattern, improved agronomic practices, system deficiency correction and command area development.
  • Cauvery Water Management Authority is also expected to look at regulated release of water by Karnataka, at the inter-state contact point presently identified as Billigundulu gauge and discharge station, located on the common border of Karnataka and Tamil Nadu.

Significance of notification:

  • This would help to solve the long running conflict on distribution of Cauvery waters.
  • It will make the management of Cauvery water scientific.

What’s important??

  • For prelims: Mandate and composition of Cauvery Management Authority
  • For mains: How Cauvery Water Management Authority will solve the problem of inter state water conflict?





Topic 2

GS2  :  Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests


PM’s Singapore visit:


  • PM Modi hailed Singapore as a strategic partner of India.
  • India and Singapore agreed to deepen their economic and defense ties as they signed 8 agreements including an agreement on logistic cooperation’s.
  • The two countries signed an implementation agreement between their navies on mutual coordination, logistics and services support for visits of naval ships, submarines and naval aircraft including ship borne aviation assets.
  • India has formalised a Mutual Recognition Agreement (MRA) in nursing with Singapore which would allow nurses trained in seven nursing institutions across India to gain employment in the South-East Asian country.
  • India and Singapore recently concluded the second review of Comprehensive Economic Cooperation Agreement (CECA).


PM’s Shangri-La Dialogue address

Key points:

  • Singapore is our springboard to ASEAN:

Singapore, for centuries has been a gateway for India to the broader east.  We have a growing political, economic and defence ties with each Southeast Asian country.

  • India and China must work together:

With trade between both the countries growing, Indo-China cooperation is expanding. We have displayed maturity and wisdom in managing issues and ensuring a peaceful border. There is growing intersection in our international presence.

  • Global transit routes must be peaceful

The Indian Ocean has shaped much of India’s history. It now holds the key to our future. The ocean carries 90 per cent of India’s trade and energy sources. It is also the lifeline of global commerce. India’s vision for the Indo-Pacific region is a positive one and it has many elements.

India stands for a free, open, inclusive Indo-Pacific region, which embraces us all in a common pursuit of progress and prosperity. It includes all nations in this geography as also others beyond who have a stake in it.

  • Globalisation key to development

This is a world of inter-dependent fortunes and failures. No nation can shape and secure it on its own. It is a world that summons us to rise above divisions and competition to work together.

  • Equal access as a right

The Prime Minister also called for equal access as a right under international law to the use of common spaces on sea and in the air that would require freedom of navigation, unimpeded commerce and peaceful settlement of disputes in accordance with international law.


What’s important?

For prelims:     What is Shangri-La Dialogue?

Topic 3

GS 2: Indian Constitution- historical underpinnings, evolution, features, amendments, significant provisions and basic structure.


Citizenship Bill may have to wait for House nod


  • The Citizenship (Amendment) Bill, 2016, is unlikely to be tabled in the monsoon session of Parliament because the Joint Parliamentary Committee (JPC) that is examining the legislation intends to have wider consultations.



  • Introduced on July 19 in the Lok Sabha, the Citizenship Amendment Bill 2016 seeks to allow illegal migrants from certain minority communities in Afghanistan, Bangladesh and Pakistan eligible for Indian citizenship. In other words, it amends the Citizenship Act of 1955.


  • The Citizenship Amendment Bill seeks to allow illegal migrants belonging to the Hindu, Sikh, Buddhist, Jain, Parsi or Christian religious communities coming from Afghanistan, Bangladesh or Pakistan to not be imprisoned or deported.
  • It also appeals for the minimum years of residency in India to apply for citizenship to be lessened from at least 11 to six years for such migrants.
  • The Bill, however, does not extend to illegal Muslim migrants. It also does not talk about other minority communities in the three neighbouring countries, such as Jews, Bahais etc.


  • The Citizenship Amendment Bill has not been sitting well with the Assamese as it contradicts the Assam Accord of 1985, which clearly states that illegal migrants heading in from Bangladesh after March 25, 1971, would be deported.


  • Under the Citizenship Act of 1955, foreigners who come into India without valid travel documents, or stay in the country beyond their visa period, are considered illegal migrants.
  • Over the years, certain exceptions have been made to this law. In September 2015, illegal migrants belonging to minority communities in Afghanistan, Bangladesh or Pakistan and coming to India on or before December 31, 2014, were allowed to stay.
  • This allowed the illegal migrants to stay in India without being imprisoned or deported. This exception was sought again in July this year.


  • Anybody who is born in India, has an Indian parent, or has lived in India for over 11 years, is eligible for Indian citizenship. At present, illegal migrants to do not fit this category.


  • The Bill also seeks to cancel the registration of Overseas Citizen of India (OCI) cardholders if they violate any law.


 What’s important?

  • Prelims: Citizenship provisions in constitution


Topic 4:

GS 3: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.”



  • The Nikkei India Manufacturing PMI fell to 51.2 in May of 2018 from 51.6 in the preceding month and below market consensus of 51.5.
  • Growth in output, new orders and employment softened while business sentiment dropped from the previous month’s nine-month high.
  • Also, purchasing activity declined for the first time in seven months, albeit only fractionally.
  • Amid reports of greater demand from the international markets Indian manufacturers reported the strongest gain in new exports order since February.
  • On the price front, a build-up of inflationary pressures re-emerged with input cost and output charge inflation rates at the strongest since February, due to the upswing in global oil prices.


What is PMI?

PMI or a Purchasing Managers’ Index (PMI) is an indicator of business activity — both in the manufacturing and services sectors. It is a survey-based measure that asks the respondents about changes in their perception of some key business variables from the month before. It is calculated separately for the manufacturing and services sectors and then a composite index is constructed. 


How is the PMI derived? 

The PMI is derived from a series of qualitative questions. Executives from a reasonably big sample, running into hundreds of firms, are asked whether key indicators such as output, new orders, business expectations and employment were stronger than the month before and are asked to rate them 

What are its implications for the economy? 

The PMI is usually released at the start of the month, much before most of the official data on industrial output, manufacturing and GDP growth becomes available. It is, therefore, considered a good leading indicator of economic activity. Economists consider the manufacturing growth measured by the PMI as a good indicator of industrial output, for which official statistics are released later. Central b .. 

What does it mean for financial markets? 

The PMI also gives an indication of corporate earnings and is closely watched by investors as well as the bond markets. A good reading enhances the attractiveness of an economy vis-a- vis another competing economy. 

What’s important?

  • Prelims: What, WHEN AND WHO is PMI?
  • Mains: Economic growth indicators and significance.

Topic 5: Issues related to direct and indirect farm subsidies and minimum support prices; Public Distribution System- objectives, functioning, limitations, revamping; issues of buffer stocks and food security; Technology missions; economics of animal-rearing


Farmer’s gaon bandh hits fresh supplies across states


  • Thousands of Indian farmers began 10-day protests on Friday demanding farm loan waivers and higher prices for produce, such as cereals, oilseeds and milk.
  • Farmers from the states of Maharashtra, Madhya Pradesh, Punjab, Haryana and Rajasthan are also asking for a guaranteed minimum income for farmers.
  • This is the third major protest by farmers in less than a year. In March, more than 40,000 marched from far-flung districts in the state of Maharashtra to reach the seat of government in the state capital, Mumbai.
  • Major demands:
  1. Minimum Support Prices (MSP) – the price at which the government buys farm produce. At least 94 percent of farmers sell their produce below MSP, data compiled by the farmers’ federation shows.
  2. Farm Loan Waiver
  3. Fixed minimum income
  4. Implementation of Swaminathan Commission recommendations.