India’s overall exports (Merchandise and Services combined) in April-July2020-21* are estimated to be USD 141.82 billion, exhibiting a negative growth of (-)21.99per cent over the same period last year. Overall imports in April-July 2020-21* are estimated to be USD 127.76billion, exhibiting a negative growth of (-) 40.66per cent over the same period last year.

*Note: i) The latest data for services sector released by RBI is for June 2020. The data for July 2020 is an estimation, which will be revised based on RBI’s subsequent release ii) the figures in bracket are growth rates vis-à-vis corresponding period of last year.

I. MERCHANDISE TRADE EXPORTS (including re-exports) Exports inJuly2020 were USD23.64 billion, as compared to USD26.33 billion in July 2019, exhibiting a negative growth of (-) 10.21 per cent. In Rupee terms, exports were Rs. 1,77,305.79 crore in July2020, as compared to Rs. 1,81,190.34 crore in July2019, registering a negative growth of (-) 2.14 per cent.

Major commodities which have recorded positive growth during July 2020 vis-à-vis July 2019 are Other cereals (204.99%), Rice (47.99%), Iron ore (39.61%), Oil seeds (32.61%), Oil meals (28.44%), Meat, dairy & poultry products (22.14%), Fruits & vegetables (21.01%), Drugs & pharmaceuticals (19.53%), Coffee (14.27%), Cereal preparations & miscellaneous processed items (12.92%), Ceramic products & glassware (9.72%), Engineering goods (8.46%), Cotton yarn/fabs./made-ups, handloom products etc. (7.44%), Jute mfg. including floor covering (6.77%), Plastic & Linoleum (3.72%) and Carpet (1.96%).

Major commodities which have recorded negative growth during July 2020 vis-à-vis July 2019 Petroleum products (-51.54%), Gems & jewellery (-49.61%), Leather & leather products (-26.96%), Man-made yarn/fabs./made-ups etc. (-23.33%), RMG of all textiles (-22.09%), Cashew (-21.25%), Marine products (-20.14%), Tobacco (-19.49%), Electronic goods (-17.42%), Spices (-11.38%), Mica, Coal & other ores, minerals including processed minerals (-8.21%), Handicrafts excl. hand made carpet (-6.12%), Tea (-3.97%) and Organic & Inorganic Chemicals (-0.05%).

Cumulative value of exports for the period April-July 2020-21 was USD74.96 billion (Rs.5,66,322.06 crore) as against USD107.41 billion (Rs.7,45,174.85crore) during the period April-July 2019-20, registering a negative growth of (-) 30.21 per cent in Dollar terms (negative growth of (-) 24.00per cent in Rupee terms).

Non-petroleum and Non-Gems and Jewellery exports in July 2020 were USD20.37 billion, as compared to USD19.70 billion in July2019, registering a positive growth of 3.40 per cent. Non-petroleum and Non-Gems and Jewellery exports in April-July 2020-21 were USD64.29billion, as compared to USD79.81 billion for the corresponding period in 2019-20, which is a decrease of (-) 19.45 per cent.

IMPORTS Imports in July2020 were USD28.47 billion (Rs.2,13,499.56 crore), which is a decline of (-) 28.40 per cent lower in Dollar terms and (-) 21.96 per cent in Rupee terms over imports of USD39.76 billion (Rs2,73,579.71 crore) in July2019. Cumulative value of imports for the period April-July 2020-21 was USD88.91 billion (Rs.6,71,894.74 crore), as against USD166.80 billion (Rs.11,57,232.64 crore) during the period April-July 2019-20, registering a negativegrowth of (-) 46.70 per cent in Dollar terms and a negative growth of (-)41.94 per cent in Rupee terms. Major commodity groups of import showing negative growth in July2020 over the corresponding month of last year are:

CRUDE OIL AND NON-OIL IMPORTS: Oil imports inJuly2020 were USD6.53billion (Rs. 48,975.09 crore), which was 31.97 percentlower in Dollar terms (25.86 percent lower in Rupee terms), compared to USD9.60 billion (Rs. 66,056.77 crore) in July2019. Oil imports inApril-July 2020-21 were USD19.61billion (Rs. 148,234.51crore) which was 55.88per cent lower in Dollar terms (51.94percent lower in Rupee terms) compared to USD44.45billion (Rs. 3,08,455.32crore), over the sameperiod last year.

In this connection it is mentioned that the global Brent price ($/bbl) has decreased by 33.11% in July2020 vis-à-vis July2019 as per data available from World Bank.

Non-oil imports inJuly2020 were estimated at USD21.94billion (Rs. 1,64,524.47crore) which was 27.26per cent lower in Dollar terms (20.72percent lower in Rupee terms), compared to USD30.16billion (Rs. 2,07,522.94crore) in July2019. Non-oil imports inApril-July 2020-21 were USD69.30billion (Rs. 5,23,660.23crore) which was 43.36per cent lower in Dollar terms (38.30percent lower in Rupee terms), compared to USD122.35billion (Rs. 8,48,777.32crore) in April-July2019-20.

Non-Oil and Non-Gold imports wereUSD20.15billion in July2020, recording a negative growth of (-) 29.15per cent, as compared to Non-Oil and Non-Gold importsof USD 28.45billion in July2019. Non-Oil and Non-Gold imports wereUSD66.82billion in April-July 2020-21, recording a negative growth of (-) 38.80per cent, as compared to Non-Oil and Non-Gold importsUSD 109.19billion in April-July 2019-20.

II. TRADE IN SERVICES EXPORTS (Receipts) As per the latest press release by RBI dated 14thAugust 2020, exports in June2020 were USD 17.00 billion (Rs. 1,28,697.70crore) registering a negative growth of (-) 8.39 per cent in dollar terms, vis-à-vis June2019. The estimated value of services export for July2020* is USD 16.65 billion.

IMPORTS (Payments) As per the latest press release by RBI dated 14th August,2020 imports in June 2020 were USD 9.96 billion (Rs. 75,423.89 crore) registering a negative growth of (-) 15.29per cent in dollar terms, vis-à-vis June2019. The estimated value of service import for July2020* is USD 9.65 billion.

III.TRADE BALANCE MERCHANDISE: The trade deficit for July2020 was estimated at USD4.83billion as against the deficit of USD13.43billion inJuly2019, which is a decline of (-) 64.06 percent.

SERVICES: As per RBI’s Press Release dated 14th August, 2020 the trade balance in Services (i.e. Net Services export) for June 2020 is USD7.04 billion. The estimated trade balance in July 2020* is USD 6.99 billion. OVERALL TRADE BALANCE: Taking merchandise and services together, overall trade surplus for April-July 2020-21* is estimated at USD14.06 billion as compared to the deficit of USD33.50billion in April-July 2019-20.

The Office of the Economic Adviser, Department for Promotion of Industry and Internal Trade is releasing index numbers of wholesale price in India for the month of July, 2020 (Provisional) and for the month of May, 2020 (Final). Provisional figures of Wholesale Price Index (WPI) are released on 14th of every month (or next working day) with a time lag of two weeks of the reference month. After 10 weeks, the index is finalized and final figures are released and then frozen thereafter.

INFLATION The annual rate of inflation, based on monthly WPI, stood at (-0.58%) (Provisional) for the month of July, 2020 (over July,2019) as compared to (1.17%) in the corresponding period of the previous year.

The movement of the index for the various commodity groups is summarized below:- PRIMARY ARTICLES (Weight 22.62%) The index for this major group increased by (3.16%) to 143.7 (provisional) in July, 2020 from 139.3 (provisional) for the month of June, 2020. Prices of Crude Petroleum & Natural Gas (17.30%), Food Articles (3.41%) increased while Non Food Articles (-0.80%) and Minerals (-2.08%) groupsdecreased in July, 2020 as compared to June, 2020.

FUEL & POWER (Weight 13.15%) The index for this major group increased by (2.72%) to 90.7 (provisional) in July 2020 from 88.3 (provisional) for the month of June, 2020. Prices of mineral oils group (13.20%) increased while prices of Coal (-0.08%) and Electricity (-11.33%) decrease as compared to June, 2020.

MANUFACTURED PRODUCTS (Weight 64.23%) The index for this major group remained unchangedat its previous month level of 118.6. Out of the 22 NIC two-digit groups for Manufactured products, 11 groups that have witnessed increase in prices are manufacture of food products; beverages; leather and related products; wood and of products of wood and cork; chemicals and chemical products; basic metals; electrical equipment; machinery and equipment; motor vehicles, trailers and semi-trailers; other transport equipment; other manufacturing products. Whereas the 11 groups that witnessed decrease in prices are manufacture of tobacco products; textiles; wearing apparel; paper and paper products; printing and reproduction of recorded media; pharmaceuticals, medicinal chemical and botanical products; rubber and plastics products; other non-metallic mineral products; fabricated metal products, except machinery and equipment; computer, electronic and optical products; furniture in July, 2020 as compared to June, 2020.

WPI FOOD INDEX (Weight 24.38%) The Food Index consisting of ‘Food Articles’ from Primary Articles group and ‘Food Product’ from Manufactured Products group have provisionally increased from 148.6in June, 2020 to 152.0in July, 2020. The annual rate of inflation based on WPI Food Index increased from 3.05% in June, 2020 to 4.32% inJuly, 2020.

FINAL INDEX FOR THE MONTH OF MAY, 2020 (BASE YEAR: 2011-12=100) For the month of May, 2020 the final Wholesale Price Index and inflation rate for 'All Commodities' (Base: 2011-12=100) stood at 117.5and WPI based rate of inflation stood at (-3.37%).

Note: The WPI for July, 2020 have been compiled at a response rate of 69 per cent, while the final figure for May, 2020 is based on the response rate of 86 per cent. These provisional figures of WPI will undergo revision as per the final revision policy of WPI.

Price Data are collected from selected institutional sources and industrial establishments spread across the country online through web based portal maintained by the National Informatics Centre (NIC).

On the final day of Atmanirbhar Week celebration of the Ministry of Defence (MoD) Raksha Mantri Shri Rajnath Singh today launched Department of Defence Production, MoD’s portal SRIJAN which is a ‘one stop shop online portal that provides access tothe vendors to take up items that can be taken up for indigenization.

Four Contracts of Defence India Start-up Challenge under iDEX and four MoUs between industry partners and Defence PSUs were also signed in presence of Raksha Mantri. A number of Expressions of Interest/Requests for Proposal were also issued.

Speaking on the occasion, Raksha Mantri said signing of these MoUs and contracts will lead us to Self-reliance in the technologies related to Defence Manufacturing. Shri Singh called upon the Indian industry partners to show complete commitment and take proactive participation in the pursuit of Indigenization and self-reliance in the Defence Sector. He said “ Self-reliance in Defence manufacturing has been envisioned not only as domestic requirement but also with export perspective and can be made possible with concerted efforts. With these things in mind, the government has taken important steps like corporatization of Entities, reforms in FDI limits and recently released negative list of import.” He said “Till sometime back, for our defence procurement, we have been looking towards the best technologies available in the world. But now our outlook has changed. We are thinking on how to manufacture latest equipment ourselves or through Joint Ventures or transfer-of-technology.”

Commending DDP for creating SRIJAN portal, Shri Singh said this will help industry partners to play active role in the goal of self-reliance in defence sector. Pursuant to Atmanirbhar Bharat announcement, Department of Defence Production, MoD has developed an indigenization portal, srijandefence.gov.in, as “opportunities for Make in India in Defence”, which will give information on items that can be taken up for indigenization by the private sector. On this portal, DPSUs/OFB/SHQs can display their items which they have been importing or are going to import which the Indian Industry can design, develop and manufacture as per their capability or through joint venture with OEMs. The Indian Industry will be able to show their interest. The concerned DPSUs/OFB/SHQs, based on their requirement of the items and their guidelines & procedures will interact with the Indian industry for indigenization.

The portal displays information in a structured way, which includes the item name, image and specification, values of imports, NATO Classification (indicative), etc. It also has a search facility.

Context: The revival of the demand for two autonomous councils has made political parties and community-based groups call for bringing the entire Arunachal Pradesh under the ambit of the Sixth Schedule or Article 371 (A) of the Constitution.

What’s the demand? Currently, Arunachal Pradesh is under the Fifth Schedule that “does not provide special rights for the indigenous communities” unlike the Sixth Schedule. Many political parties have been demanding the inclusion of Arunachal Pradesh in the 6th Schedule for making the Arunachalees owner of all natural resources instead of being protectors only.

Inclusion of the state under the Sixth Schedule would enable the state to own the legitimate ownership rights over its own natural resources and make it self sufficient without having to depend too much on central grants.

What is 6th Schedule? The Sixth Schedule currently includes 10 autonomous district councils in four northeastern States — Assam, Meghalaya, Mizoram and Tripura.

Passed by the Constituent Assembly in 1949, it seeks to safeguard the rights of tribal population through the formation of Autonomous District Councils (ADC). This special provision is provided under Article 244(2) and Article 275(1) of the Constitution.

Key provisions: The governor is empowered to organise and re-organise the autonomous districts. If there are different tribes in an autonomous district, the governor can divide the district into several autonomous regions.

Composition: Each autonomous district has a district council consisting of 30 members, of whom four are nominated by the governor and the remaining 26 are elected on the basis of adult franchise. Term: The elected members hold office for a term of five years (unless the council is dissolved earlier) and nominated members hold office during the pleasure of the governor.

Each autonomous region also has a separate regional council. Powers of councils: The district and regional councils administer the areas under their jurisdiction. They can make laws on certain specified matters like land, forests, canal water, shifting cultivation, village administration, inheritance of property, marriage and divorce, social customs and so on. But all such laws require the assent of the governor.

Village councils: The district and regional councils within their territorial jurisdictions can constitute village councils or courts for trial of suits and cases between the tribes. They hear appeals from them. The jurisdiction of high court over these suits and cases is specified by the governor.

Powers and functions: The district council can establish, construct or manage primary schools, dispensaries, markets, ferries, fisheries, roads and so on in the district. It can also make regulations for the control of money lending and trading by non-tribals. But, such regulations require the assent of the governor. The district and regional councils are empowered to assess and collect land revenue and to impose certain specified taxes.

Exceptions: The acts of Parliament or the state legislature do not apply to autonomous districts and autonomous regions or apply with specified modifications and exceptions.

The governor can appoint a commission to examine and report on any matter relating to the administration of the autonomous districts or regions. He may dissolve a district or regional council on the recommendation of the commission.

What about Nagaland? Nagaland is governed by Article 371 (A), which says that no Act of Parliament shall apply in the State in several areas unless the Nagaland Assembly so decides by a resolution.

These include administration of civil and criminal justice involving decisions according to Naga customary law and ownership and transfer of land and its resources.

Context: A Price Monitoring and Resource Unit (PMRU) has been set up in Karnataka under the aegis of National Pharmaceutical Pricing Authority (NPPA), Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers.

What are Price Monitoring and Resource Units (PMRU)? It is a registered society and shall function under the direct control and supervision of State Drug Controller of respective states. The unit shall be funded by NPPA for its recurring and non-recurring expenses.

Functions: Help NPPA and State Drug Controller in ensuring availability and accessibility of medicines at affordable prices. Organise seminars, training programs and other information, education and communication (IEC) activities in the areas of availability and affordability of medicines for all.

Collect samples of medicines, collect and analyse data and make reports with respect to availability and over-pricing of medicines for taking action under the provisions of Drug Price Control Order (DPCO).

Which other states have PMRUs? NPPA, under its Central Sector Scheme named Consumer Awareness, Publicity and Price Monitoring (CAPPM), has already set up PMRUs in 12 States/ UTs, including Kerala, Odisha, Gujarat, Rajasthan, Haryana, Nagaland, Tripura, Uttar Pradesh, Punjab, Andhra Pradesh, Mizoram and Jammu & Kashmir. NPPA has plans to set up PMRUs in all the 36 States/ UTs.

The NIIO is a three-tiered organisation. Naval Technology Acceleration Council (N-TAC)will bring together the twin aspects of innovation and indigenisation and provide apex level directives.

A working group under the N-TAC will implement the projects. A Technology Development Acceleration Cell (TDAC)has also been created for induction of emerging disruptive technology in an accelerated time frame.

Functions of NIIO: The NIIO puts in place dedicated structures for the end users to interact with academia and industry towards fostering innovation and indigenisation for self-reliance in defence in keeping with the vision of Atmanirbhar Bharat.

Background: The Draft Defence Acquisition Policy 2020 (DAP 20) envisages Service Headquarters establishing an Innovation & Indigenisation Organisation within existing resources.

Indian Navy already has a functional Directorate of Indigenisation (DoI) and the new structures created will build upon the ongoing indigenisation initiatives, as well as focus on innovation.

Context: It is a new platform launched recently by PM Modi to further digitise the Income Tax Department’s functioning. The platform seeks to “reform and simplify our tax system.”

Key features of the platform: The platform has major reforms like faceless assessment, faceless appeal and taxpayers charter. Faceless assessment and taxpayers charter have come into force. However, the facility of faceless appeal will be available from September 25.

Need for such initiatives: The number of taxpayers is significantly low with only 1.5 Crore paying taxes in a country of 130 Crore people. Therefore, its time for people to introspect and come forward to pay Income taxes due on them to build an AtmaNirbharBharat.

Besides, the country’s tax structure needed fundamental reforms as the earlier tax structure was developed from the one created during pre-independent times. Even the several changes made during the post-independent times did not alter its fundamental character. Thus, the complexity of the earlier system made it difficult to conform.

Significance of the platform: Honest taxpayers of the country play a big role in nation-building. When the life of an honest taxpayer becomes easy then the country also develops.

Therefore, the tax system should be seamless, painless and faceless. The new facilities launched are a part of the Government’s resolve to provide maximum governance with minimum government.

Recent tax reforms: Latest laws reduced the legal burden in the tax system where now the limit of filing cases in the High Court has been fixed at up to 1 crore rupees and up to 2 crores for filing in the Supreme Court.

Initiatives like the ‘Vivaad Se Vishwas’ Scheme pave the way for most of the cases to be settled out of court. The tax slabs have also been rationalised as a part of the ongoing reforms where there is zero tax upto an income of 5 lakh rupees, while the tax rate has reduced in the remaining slabs too.

Context: African swine fever (ASF) has spread to Meghalaya; more than 17,000 pigs have died due to the highly-contagious disease in adjoining Assam.

Background: Since February this year, ASF has killed at least 17,000 domesticated pigs in Assam and an unspecified number in Arunachal Pradesh. The disease is believed to have been transmitted from China where it has resulted in the death of several animals in 2019.

What’s the concern? Piggery is a major source livelihood in the northeast because of the high demand for pork. Assam alone has seven lakh pig farmers engaged in the business, worth at least ₹8,000 crore annually.

About African Swine Fever (ASF): ASF is a highly contagious and fatal animal disease that infects domestic and wild pigs, typically resulting in an acute form of hemorrhagic fever.

It was first detected in Africa in the 1920s. The mortality is close to 100 per cent, and since the fever has no cure, the only way to stop it spreading is by culling the animals. ASF is not a threat to human beings since it only spreads from animals to other animals.

According to the FAO, “its extremely high potential for transboundary spread has placed all the countries in the region in danger and has raised the spectre of ASF once more escaping from Africa. It is a disease of growing strategic importance for global food security and household income”.

Context: In a world battered by the COVID pandemic, the demand for healthy and safe food is already showing an upward trend and hence this is an opportune moment to be captured for a win-win situation for our farmers, consumers and the environment.

Organic farming in India: India ranks first in number of organic farmers and ninth in terms of area under organic farming.

Sikkim became the first State in the world to become fully organic and other States including Tripura and Uttarakhand have set similar targets. North East India has traditionally been organic and the consumption of chemicals is far less than rest of the country.

Similarly the tribal and island territories are being nurtured to continue their organic story. The major organic exports from India have been flax seeds, sesame, soybean, tea, medicinal plants, rice and pulses.

Government initiatives to support organic farming: Mission Organic Value Chain Development for North East Region (MOVCD) and Paramparagat Krishi Vikas Yojana (PKVY) launched in 2015 to encourage chemical free farming. Both these schemes are promoting certification under Participatory Guarantee System (PGS) and National Program for Organic Production (NPOP) respectively targeting domestic and exports markets.

What is organic farming? It is an agricultural process that uses biological fertilizers and pest control acquired from animal or plant waste. It is a unique production management system which promotes and enhances agro-ecosystem health, including biodiversity, biological cycles and soil biological activity.

Context: India announced a slew of new connectivity measures for the Maldives, including air, sea, intra-island and telecommunications in an effort to help the Indian Ocean Islands deal with the economic impact of the COVID-19 pandemic.

Initiatives announced: Air connectivity “bubble” for travel. A direct ferry service. A submarine cable for telecom connectivity. Assistance for the Greater Male Connectivity project (GMCP) to connect Male to three neighbouring islands- Villingili, Thilafushi and Gulhifahu islands.

Background: India will support the implementation of the GMCP in Maldives, through a financial package consisting of a grant of USD 100 million and a new Line of Credit (LoC) of USD 400 million. The GMCP would be the “largest civilian infrastructure project in Maldives”.

What is Line of Credit (LOC)? The Line of Credit is not a grant but a ‘soft loan’ provided on concessional interest rates to developing countries, which has to be repaid by the borrowing government.

The LOCs also helps to promote exports of Indian goods and services, as 75% of the value of the contract must be sourced from India.

It is an Indian Coast Guard Offshore Patrol Vessel. It was launched recently.

It is the 4th in the series of five OPVs.

It has been designed & built indigenously by M/s Goa Shipyard Limited (GSL).

mediterranean_sea The Mediterranean is a vast sea positioned between Europe to the north, Africa to the south, and Asia to the east.

The Mediterranean Sea connects: to the Atlantic Oceanby the Strait of Gibraltar (known in Homer‘s writings as the “Pillars of Hercules“) in the west

to the Sea of Marmaraand the Black Sea, by the Straits of the Dardanelles and the Bosporus respectively, in the east The 163 km (101 mi) long artificial Suez Canalin the southeast connects the Mediterranean Sea to the Red Sea.

Why in News? France has temporarily reinforced its military presence in the eastern Mediterranean Sea amid tensions between neighbours Greece and Turkey over recently discovered gas reserves.