TNPSC Current Affairs June 19, 2020

www.tnpsc.academy – TNPSC Current Affairs June 19, 2020 (19/06/2020)

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Topic: International Diary of Events

Banning trade with China

The Indian government has tried to respond to the border dispute with China by training its guns on trade. The idea resonating in Indian streets is that Indians should boycott Chinese goods and thus “teach China a lesson”.

But, given China’s centrality and India’s insignificant share in global trade, banning trade will barely hurt China while adversely impacting Indian consumers and businesses.

Boycotting China is not as easy as data from key sectors show:

Smartphones: Market size: Rs 2 lakh Cr. Share of Chinese products: 72%.

Telecom Equipment: Market size: Rs 12,000 Cr; Share of Chinese products: 25%.

Auto Components: Market size: 43.1 lakh Cr.; Share of Chinese products: 26%.

Internet Apps: Market size: 45.0 Crore smartphone users; Share of Chinese products: 66% of people use at least one Chinese app on their smartphones.

Solar Power: Market size: 37,916 MW; Share of Chinese products: 90%

Steel: Share of Chinese products: 18-20%.

Pharma/API: Market size: 1.5 Lakh Crore; Share of Chinese products: 60%.

When is “Boycott China” possible?

When the economical gap between India and China is narrowed, the country, prompted by emotions of nationalism amid the standoff between the two countries, can boycott Chinese products and carve out a path for ‘Atma Nirbhar Bharat.’

Why is China cheaper?

Provision of cheap labour is one of the factors that contribute to cheaper Chinese products.

Raw materials are cheaper. They are a significant part of the total cost of the product. Since the Chinese firms invest in bulk purchases for bulk production, it saves the tremendous cost of production.

Efficient business ecosystem comprising of a network of suppliers, component manufacturers, distributors, government agencies, and customers. All have key-roles to play in ironing out the production process.

Business loans are easily accessible, especially for bigger industries which provides a greater financial cushion to businesses in the manufacturing segment.

The Chinese factories have been criticized for their lower compliance with health and safety regulations and environmental protection laws.

China follows a Value Added Tax (VAT) system. A tax which is charged only on the “value-added” to a product, material or service at every stage of its further manufacture or distribution. Exported goods are subject to zero per cent VAT. In simpler terms, they enjoy a VAT exemption or rebate policy.

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Topic: Current Socio-Economic Issues

Dexamethasone

Dexamethasone has become the subject of discussion after researchers from the Recovery Trial reported that it helps reduce death rates in certain Covid-19 patients.

What is it?

It is an anti-inflammatory drug, commonly used to treat conditions in which the body’s immune system does not function properly, and causes inflammation and tissue damage.

Dexamethasone reduces the production of the chemicals that cause inflammation and also reduces the activity of the immune system by affecting the way white blood cells function.

It falls in a category called corticosteroids, which closely mimic cortisol, the hormone naturally produced by the adrenal glands in humans.

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Topic: Eminent Places in News, Profile of States

Kodumanal – Erode

During the ongoing excavation at the site, the following things have been found:

10 Pots and bowls placed outside three-chambered burial cists and inside the cairn-circle. This has thrown light on burial rituals and the concept of afterlife in megalithic culture.

Other findings: Animal skull, possibly of a wolf or a dog; precious stones; copper smelting units; potteries.

Where is it?

Kodumanal is a village located in the Erode district in Tamil Nadu. It is located on the northern banks of Noyyal River, a tributary of the Cauvery.

It was once a flourishing ancient trade city known as Kodumanam, as inscribed in Patittrupathu of Sangam Literature.

It served as a trade-cum-industrial centre from 5th century BCE to 1st century BCE.

The place is an important archaeological site, under the control of State Archaeological Department of Tamil Nadu.