Daily Current Affairs - 02-02-2021

The Finance Minister, Nirmala Sitharaman, announced during the Union Budget 2021 presentation that the Government has proposed a “Mega Investment Textiles Parks (MITRA) scheme”.


Production Linked Incentive (PLI) Scheme

It is a Central Sector scheme. The scheme was notified in April 2020 for the Large-Scale Electronics Manufacturing. This was notified with the objective of providing the financial incentives for domestic manufacturing of goods. The scheme also seeks to attract large investments. It was initially launched for the domestic manufacturing of Mobile Phones and Specified Electronic Components. In the later phase, it was rolled out for the pharmaceutical ingredients and medical devices.

Incentive offered under PLI Scheme

This scheme provides 4% to 6% incentive on incremental to the eligible companies who are manufacturing goods for 5 years period. The companies that are registered in India and involved in the manufacturing of goods are covered under the Target Segments of the scheme. These companies are eligible for the incentives under the scheme.

Textile Industry in India

Textile and apparel industry is the earliest industries in India. It has an inherent and unique strength of incomparable employment potential. This sector is the biggest employer after agriculture. It directly provides employment to 4.5 crore people and 6 crores employments in the allied sectors. India is the second-largest manufacturer of textiles and clothing across the world. It is also the second-largest exporter of textiles and apparel. It has a share of 5% in the global trade.

The Vice President of India, M. Venkaiah Naidu, have inaugurated the Aadi Mahotsav at Dilli Haat in New Delhi.


About Aadi Mahotsav


The festival suggests that the ‘adi’ factor is an important about them. Theur way of life is guided by the primal truths, eternal values and natural simplicity. These tribes have managed to retain the natural simplicity. ‎Because of this quality, their arts and crafts a timeless appeal. Thus, this festival is organised in order to channelize and promote their natural skills and provide them a source for livelihood.

Tribal Co-operative Marketing Federation of India (TRIFED)

It is a national level cooperative body that works under the administrative control of Ministry of Tribal Affairs. The body was established in the year 1984 under the co-operative societies act 1984. The body is engaged in empowering the downtrodden tribal community by procuring the tribal art and craft items through its retail outlet called TRIBES INDIA.

The Finance Minister, Nirmala Sitharaman, while presenting the Union Budget 2021 has announced that the government has put forward the proposed to launch a portal to formulate social security scheme for the workers of the India’s gig economy.


What is Gig Economy?

A gig economy is a free market system where temporary positions are common. In such system the organizations hire the independent workers for short-term commitments. The gig economy includes the work arrangements including the independent contractors, Project-based workers, freelancers, and temporary or part-time hires. It is part of a shifting cultural and business environment including the sharing economy, gift economy and barter economy.

Who makes the gig economy?

The gig economy comprises of the companies, gig workers and consumers. The types of organizations that the gig economy can apply ranges from the technical positions to transportation positions.

Who are blue collar workers?

Blue-collar workers are the working-class person who performs the manual labour. These workers could be skilled or unskilled. These workers are usually involved in the work including the warehousing, manufacturing, excavation, mining, farming, logging, electricity generation, power plant operations, food processing, waste collection and disposal, oil field work, construction, driving, shipping and so on.

The Chief Minister of Punjab, Captain Amarinder Singh, has launched the ‘Har Ghar Pani, Har Ghar Safai’ mission virtually.


This mission is the part of the government’s campaign to complete the goal of 100 per cent potable piped water supply in all rural households by March 2022.

Mega Surface Water Supply Scheme

  1. It covers the 85 villages in the Moga district.
  2. It comprises of 144 new water supply schemes for 172 villages.
  3. It also comprises 121 Arsenic and Iron removal plants.


The government has spent an average of ₹920 crore annually on water supply and sanitation schemes. As per the data, a total of Rs. 1450 crore had been spent on rural sanitation and rural drinking water supply since March 2017.

Multi-village surface water supply schemes

The government also launched the 10 new large multi-village surface water supply schemes. The scheme costs ₹1,020 Crore. It will cover 1,018 villages comprising of the water quality affected areas in the districts of Patiala, Fatehgarh Sahib, Amritsar, Gurdaspur and Tarn Taran.

Jal Jeevan Mission

The Jal Jeevan Mission was launched on August 15, 2019. The scheme was launched with the objective of providing the safe and adequate drinking water. The scheme seeks to provide tap water to the individual houses by 2024 in rural India. It is based on a community approach to water.

The Tibetan spiritual leader the Dalai Lama have recently launched his new book “The Little Book of Encouragement”. The book comprises of 130 quotes. The book has been edited by Renuka Singh while published by Penguin Random House.


Dalai Lama’s take on Sino-India ties

He wrote on the Sino-India relation that, both India and China have developed a sense of competition in the recent times. The countries have high population and are powerful nations. Yet, they cannot destroy each other and have to live side-by-side. Further, on Tibet issue he suggested the Tibetans to consider the Chinese as brothers and sisters than as enemy.

About Dalai Lama

Dalai Lama title has been given by the Tibetan people to the foremost spiritual leader of the Gelug or “Yellow Hat” school of Tibetan Buddhism. Tenzin Gyatso is the current and 14th Dalai Lama. He lives in India as a refugee. The Dalai Lama id considered to be the successor tulkus. The tulkus are considered to be the incarnations of Avalokiteśvara (a Bodhisattva of Compassion).

Tenzin Gyatso

He is also known as Tenzin Gyatso. He was born on July 6, 1935. He is considered as the living Bodhisattva, an emanation of Avalokiteśvara. He is the current Dalai Lama.

The SpaceX of Elon Musk has recently announced to launch its first all civilian mission to the space.


About the mission

Space Exploration Technologies Corp. (SpaceX)

It is an American aerospace manufacturer and space transportation services. SpaceX is headquartered in Hawthorne, California. It was founded in 2002 by Elon Musk. It was founded with the objective of reducing the space transportation costs in order to enable the colonization of Mars. It has developed several launch vehicles, Dragon cargo spacecraft and Starlink satellite constellation. It has also flown humans to the International Space Station on the SpaceX Dragon 2.

SpaceX Dragon

It is also known as Dragon 1 or Cargo Dragon. It is a reusable cargo spacecraft developed by SpaceX. The Dragon 1 spacecraft was launched into orbit by the Falcon 9 launch vehicle so as to resupply the International Space Station (ISS).

Recently, Prime Minister Narendra Modi applauded a girl from Odisha named Bhagyashree in his mann ki baat programme. The girl has mastered the art of creating Pattachitra on various themes using the soft stones. The girl boosted her skill during the lockdowns and created pattachitra art works on unused bottles, electric bulbs and various glass and plastic materials.

About Pattachitra

Theme of the paintings

Categories of the paintings

The pattachitra paintings of Odisha is divided into three categories based on the medium namely, Paintings on cloth or ‘Patta Chitra’, Paintings on walls or ‘Bhitti Chitra’ and Paintings on the palm leaf or “Tala Patra Chitra’.

GI Tag

The Geographical indication of Patachitra is registered differently in both the states because style and motif of the paintings in both the state are different. Patachitra of Odisha is registered as Orissa Pattachitra while that of West Bengal is registered as Bengal Patachitra.

Recently, the Maritime body MUI urged the government to take cognisance of ”Neptune Declaration on Seafarer Wellbeing and Crew Change” in order to formulate the Maritime India Vision 2030.


The “Maritime India Vision 2030” will be formulated by the Ministry of Ports, Shipping and Waterways of India.

Neptune Declaration

  1. To recognize the seafarers as the key workers and provide them priority access to Covid-19 vaccines.
  2. To establish and implement the gold standard health protocols which are based on the existing best practice.
  3. To increase the collaboration between the ship operators and charterers so as to facilitate the crew changes.
  4. To ensure the air connectivity between the key maritime hubs for seafarers.

Maritime Union of India (MUI)

The Marine Union of India is the oldest marine office. It represents the Merchant Navy Officers who are its members. The office is affiliated to the International Transport Workers’ Federation (ITF), London, United Kingdome.  It has around 700 unions that represents over 4.5 million transport workers from150 countries. The office is also affiliated to the Hind Mazdoor Sabha (HMS), New Delhi.  The office work with the primary objective of working for and ensuring the fairness of work and wage conditions for the members. It also has Branch office in Kolkata, Chandigarh, Chennai, Visakhapatnam, and Tuticorin. The office also looks after the implementation of the international regulations such as Maritime Labour Convention (MLC), 2006.

Finance Minister Nirmala Sitharaman highlighted, while presenting the union budget for 2021-2022, that the fiscal deficit in the next financial year is estimated as 6.8 percent of the gross domestic product (GDP).


Fiscal Deficit

The difference between the total income of the government inclusive of the total taxes & non-debt capital receipts and the total expenditure of the government is called as the fiscal deficit. The situation of fiscal deficit occurs when the government’s expenditure exceeds its income. The fiscal deficit is calculated in both the absolute terms and the percentage of the Gross Domestic Product (GDP) of the country. If the fiscal deficit is recurring that means the government is spending beyond its means. It is calculated by the formula:

“Fiscal Deficit = Total expenditure of the government (capital and revenue expenditure) – Total income of the government (Revenue receipts + recovery of loans + other receipts)”.

Sometimes, a high fiscal deficit can also be good for the economy if the money spent is used for the creation of productive assets such as highways, roads, ports and airports. It will help in boosting the economic growth and ultimately leads to job creation.

How Fiscal Deficit can be minimized?

The fiscal deficit can be minimized by borrowing money. Usually, the borrowing requirements of the government in any financial year is equal to the fiscal deficit of that year.

The Chief Minister of Kerala, Pinarayi Vijayan, inaugurated the “Kerala Looks Ahead” on February 1, 2021.


Theme of the conference

The conference covered the nine themes of deliberations. The nine themes include the primary sector such as agriculture, fisheries & animal resources development; higher education including the international academic collaboration; skill development; modern industrial possibilities; tourism; e-governance; local governments; federalism & development financing and information technology.

Kerala State Planning Board

It is an advisory board under the Government of the State of Kerala. The board was constituted in the year 1967. The Chief Minister is the Chairman of the board. It helps the state government in formulating a development plan on the basis of a scientific assessment of the resources such as material, capital and human that are available in the state. The board prepared a comprehensive economic review of the state every year.

The military of Myanmar has taken control of the country and a one-year state of emergency has been announced. Further, State Counsellor Aung San Suu Kyi and other government leaders have been detained.

Why emergency has been announced?

Implications of the military control

Now in Myanmar, telecommunications have been halted.  Internet and phone access have also been blocked. Social media accounts of many people have been temporarily suspended. Barbed wire road blocks were set up and the military units have overtaken the government buildings. Further, there is a fear of crackdown on human rights defenders, journalists, and others critics of the military because, even before the military takeover, journalists, free speech advocates and critics of the military have faced legal actions many times.

About Myanmar

It is a country in Southeast Asia which is bordered by Bangladesh and India in the northwest, China in the northeast, Laos and Thailand in the east and southeast while Andaman Sea and the Bay of Bengal in the south and southwest. It is the largest country in Mainland Southeast Asia while it is the 10th largest in Asia by area. The capital city of the country is Naypyidaw. Yangon (Rangoon) is the largest city of Myanmar. Myanmar have border with the Indian States of Mizoram, Manipur, Nagaland and Arunachal Pradesh.

The Finance Minister of India, Nirmala Sitharaman, announced an agricultural infrastructure and development cess (AIDC) on some goods while presenting Union Budget 2021. AIDC was announced to provide support to those sector that has been one bright spot amid the COVID-19 pandemic.


AIDC on commodities

The finance minister proposed AIDC on various commodities as stated below:

  1. Rs 2.5 per litre on petrol.
  2. Rs 4 per litre on diesel.
  3. 5 percent on gold, silver and dore bars.
  4. 100 percent on alcoholic beverages.
  5. 5 percent on crude palm oil.
  6. 20 percent on crude soyabean and sunflower oil.
  7. 35 percent on apples.
  8. 5 percent on coal, lignite and peat.
  9. 5 percent on specified fertilisers.
  10. 30 percent on Kabuli chana.
  11. 20 percent on Lentil (Mosur).
  12. 50 percent on Bengal Gram/Chick Peas.
  13. 40 percent on peas.
  14. 5 percent on Cotton which are not Carded.

Impact on Consumers

Cess on petrol and diesel will not amount any additional burden on consumers because unbranded petrol was earlier attracting a basic excise duty (BED) of Rs 2.98 apart from a special additional excise duty (SAED) of Rs 12 per litre. The BED and SAED has now been reduced respectively to Rs 1.4 and Rs 11 per litre. Thus, the net consumer will not pay anything extra. Similarly, alcoholic beverages charges 150 per cent BED which now has been cut to 50 per cent. This in addition with the proposed AIDC of 100 per cent will not put any extra burden on consumers.

The 2021-22 Union Budget was presented amid the COVID-19 pandemic on February 1, 2021. Since the 2020 budget, the Indian economy have reduced from 2.24 lakh crore nominal GDP to Rs 1.94 lakh crore. This reduction in the size of the economy was due to the lower revenue growth and higher expenditure in the year 2020 because of coronavirus pandemic. The fiscal deficit for 2021-2022 was estimated to be 6.8% of the GDP.


6 PILLARS of the Budget