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Day: October 5, 2017

All news available date-wise and month-wise. Click on the date to revise news.

October 2017
« Sep   Nov »

[5 Oct 2017 | Low Priority News Items of the Day]

Low Priority Items of the Day:

‘GST is hurting used-car business’

The introduction of the Goods and Services Tax (GST) has turned the used-car business topsy-turvy for organised players. At a time when the pre-owned car business is slowly coming on to the formal sector with more established players (especially carmakers) entering the fray, the applicability of GST on second-hand cars has placed a big question mark on the viability of the business, said sources in the industry.

It is not important to go through the effects of GST on every product. Just try to know its effects on essential products only.


Agusta deal middleman held in Italy

Wanted European middleman Carlos Gerosa has been apprehended by authorities in Italy on the basis of an Interpol notice activated by the ED in connection with its money laundering probe in the Rs. 3,600 crore AgustaWestland VVIP choppers deal case.

It is a serious corruption case. But it is not important to note down every improvement in court proceedings. Only the final verdict is important.


Economy will recover in 6 months: Gadkari

Former Union Minister Arun Shourie called the demonetisation effected last year the world’s “largest money-laundering scheme” in an interview to NDTV. “I don’t agree with his views. All the money deposited in bank accounts will have to be accounted for. Black money in the economy will be reduced substantially,” Mr. Gadkari said.

The statement by the minister is more like a political statement and a speculation. No need to go through articles which talks about speculations.


Gathering clouds over West Asia

West Asia is in a period of heightened uncertainty. In the Levant, regional powers are scrambling to fill the vacuum created by the steady dismantling of the Islamic State’s sham caliphate across Syria and Iraq.

The Op-Ed talks about foreign policies of two foreign nations. Only those articles are important from the UPSC perspective which can have any significant affect on India.

Climate Change Negotiations – UNFCCC, COP, Other Conventions and Protocols Global Groupings and Conventions

India among the worst affected by climate change: IMF study


Mains Paper 3: Environment | Conservation, environmental pollution and degradation, environmental impact assessment

From UPSC perspective, the following things are important:

Prelims level: Not much

Mains level: Patterns of Global Warming’s affects around the world.


Region that will be most affected by the Global Warming

  1. According to a study of the IMF, countries in the tropics will be the worst affected as a result of global warming
  2. The report says, for the median emerging market economy, a 1°C increase from a temperature of 22°C lowers growth in the same year by 0.9 percentage point(see figure given below)

Affect on India and others

  1. India is one of the worst affected, with its per capita output expected to fall
  2. Other countries in the region, such as Bangladesh, Pakistan, Sri Lanka, Indonesia, Malaysia will be similarly affected

Affects on Developed Nations

  1. The impact of most developed nations, located in the temperate zone, is negligible
  2. The overall impact on China’s growth, too, is estimated to be negligible
  3. On the other hand, some northern nations such as Russia, Norway and Canada will see their growth improve

[op-ed snap] A learning crisis in the developing world


Mains Paper 2: Governance | Welfare schemes for vulnerable sections of the population by the Centre and States and the performance of these schemes; mechanisms, laws, institutions and Bodies constituted for the protection and betterment of these vulnerable sections.

From UPSC perspective, the following things are important:

Prelims level: Not much

Mains level: Very important. The article talks about a serious issue. UPSC is known to ask questions on such types of issues.



  1. The failure of children to achieve minimum proficiency levels despite attending school is an economic and ethical crisis

Not just an Indian problem but a global epidemic

  1. We have known that an unacceptably large number of Indian children are attending school but not learning enough
  2. Now, research shows that this is not just an Indian problem
    New estimates from the Unesco Institute for Statistics (UIS)
  3. Estimates shows that about 617 million children are not achieving minimum proficiency levels in reading and mathematics, around the world
  4. It threatening, several low- and middle-income countries across the globe

Region specific data

  1. In sub-Saharan Africa, according to UIS data, about 88% of children are not able to read properly or do simple math by the time they finish middle school
  2. South and central Asia comes a close second, with 81% of children in the region not learning the basic minimum

Level of crisis in India

  1. In rural India, the latest edition of the “Annual State of Education Report” (Aser) shows that only 47.8% of class V students can read a class II-level text
  2. And only 43% of class VIII students can do class V-level arithmetic
  3. This learning crisis comes at a time when enrolment levels have increased across the board.
  4. India has achieved near-universal enrolment and, globally, the gap between children attending school in developed and developing countries is closing
  5. So, access to education has improved but the quality of education hasn’t

Comparison between countries

  1. The World Bank describes the above issue as not just a “learning crisis” but a “moral crisis”—abmplifying inequalities between and within nations
  2. International assessments of literacy and numeracy have consistently shown that students from low-income countries perform worse than those from high-income countries
    For Example:
  3. Indonesia has significantly improved its performance in the Programme for International Student Assessment (PISA) over the last 10-15 years
  4. But still, according to the World Bank report, with this rate, Indonesia will still take another five decades to reach the developed world’s average score for mathematics and another seven decades for reading
  5. It is tempting to blame this on lack of resources but post-war South Korea, or of Vietnam and Peru, Malaysia and Tanzania have only recently improved learning outcomes

Why do some countries succeed while others fail? 

  1. Essentially, because the latter aren’t able to effectively integrate their key elements
  2. The World Bank lists four such elements—students, teachers, school administration and school infrastructure
  3. If any one malfunctions, the entire system is threatened
    (1) Students
  4. If children come to school sick or hungry, or if parents aren’t able to care for them, not just after birth but also in the womb, then their learning levels will be adversely affected
    (2) Teachers
  5. The importance of teachers’ skills and capabilities should require no elaboration
  6. Yet, they receive little attention
  7. Most developing countries struggle to attract the best and the brightest to their schools even when pay is competitive
  8. Teachers, once hired, are given almost no training or professional development support, leaving them ill-equipped in the classroom
    (3) School administration
  9. A 2015 study by Stanford University’s Nicholas Bloom and others on management practices across 1,800 high schools in eight countries, including India
  10. This study showed that better management produced better educational outcomes, and schools with greater autonomy did especially well
    (4) School Infrastructure
  11. The relationship between learning levels and learning aids and tools such as laptops and laboratories is often overemphasized
  12. Several studies have shown that similar investments can produce vastly different outcomes, depending on how the investment is utilized
  13. For example, one assessment of Brazil’s One Laptop Per Child scheme showed that more than 40% of teachers rarely used the devices in classrooms

The way forward

  1. A disproportionate focus on such inputs, and inadequate attention towards outcomes, is one of the most important reasons why India’s right to education legislation has performed below potential
  2. For there to be a shift in policy and practice, one has to start with assessing outcomes
  3. This is the World Bank’s top recommendation for making education systems more effective
  4. Assessing, measuring and benchmarking performance is the first step
Issues related to Economic growth

Inflation set to pick up in H2FY18: RBI


Mains Paper 3| Indian Economy

Prelims: Inflation- WPI and CPI, GST

Mains level: Not much



  1. Consumer price inflation is likely to pick up in the second half of 2017-18 with food prices set to rise.
  2. There has been a broad-based increase in CPI inflation excluding food and fuel.
  3. The RBI has kept the repo rate unchanged at 6 per cent in the bi-monthly monetary policy
  4. Inflation is expected to rise from its current level and range between 4.2-4.6 per cent in the second half of this year, including the house rent allowance by the Centre.

Why RBI feels that inflation will pick up?

  1. Early indicators show that prices of pulses which had declined significantly to undershoot trend levels in recent months, have now begun to stabilise.
  2. Some price revisions pending the goods and services tax (GST) implementation have been taking place.
  3. International crude prices, which had started rising from early July, have firmed up further in September.
  4. Implementation of farm loan waivers by states and salary and allowances


  • Consumer Price Index:CPI is used to monitor changes in the cost of living over time, it reflects the price of goods and services bought by the final consumers. The CPI compares the price of a fixed basket of goods and services to the price of the basket in the base year that is 2011-12. India has adopted CPI to measure inflation. CPI is calculated by Central Statistics Office (CSO), Ministry of Statistics and Programme Implementation (MOSPI).
  • Whole sale Price Index: WPI is used to monitor the cost of goods and services bought by producer and firms rather than final consumers. WPI basket does not cover services. In IndiaOffice of Economic Advisor (OEA), Department of Industrial Policy and Promotion, Ministry of Commerce and Industry calculates the WPI. The new base year for WPI is 2011-12




Foreign Policy Watch: India-United States Bilateral Relations

US resumes premium processing of all H1B visa categories


Mains Paper 2| Effect of policies and politics of developed and developing countries on India’s interests, Indian diaspora.

From UPSC perspective, the following things are important:

Prelims level: H1B visa basics

Mains level: Indo-US Relations



The article tells us that the premium processing of the H1B visas for the US has resumed.

 What is H1B Visa-

  1. It is a visa which allows US employers to employ foreign workers in specialised areas of work that require theoretical and technical expertise.
  2. As mandated by the US Congress (part of Parliament of the US) every year USCIS (United States Citizen & Immigration Service) can issue a maximum of 65,000 H1B visas and 20,000 to those who have earned higher education in STEM subjects (Science, Tech, Engg. and Maths) from a US higher educational institution.
  3. H1B visas for academic and research institutes are exempted from the Congressional mandated limit.


Main issue-

  1. The premium processing or expedited processing (processed within 15 days) of H1B visas was suspended in April to handle huge rush in applications.
  2. The Trump administration believes that the H1B visas have been misused by companies to replace American workers.




[op-ed snap] Coal fired projections: on the draft energy policy


Mains Paper3: Economy | Infrastructure: Energy, Ports, Roads, Airports, Railways, etc.

From UPSC perspective following things are important

Prelims: Not much

Mains level:  This article is important for the as it brings out the drawbacks of Niti Aayog’s DNEP.



  1. Niti Aayog’s Draft Energy Policy (DNEP) ) predicts that between 2017 and 2040, there will be a quantum leap in the uptake of renewable energy together with a drastic reduction in fossil fuel energy intensity.
  2. With economic and population growth, India’s annual per-capita electricity consumption is expected to triple, from 1075 kWh in 2015-16 to over 2900 kWh in 2040.
  3. The DNEP assumes 100% electrification throughout India in the near term
  4. The government will invest $2.5 billion to provide electricity connections to every home in India by the end of 2018.
  5. But the DNEP fails to consider several critical issues involved in the ongoing energy transition.

Drawback of DNEP

  1. Based on Coal
  • Despite the fact that existing coal plants are running at low efficiencies (at merely 60% plant load capacity utilization) because of weak industrial growth in last 3 years, the DNEP relies on coal power to sustain the nation’s base load requirement to meet rising energy demand.
  • It proposes that coal will fuel 67% of India’s power generation in 2022.
  • It is contrary to the India’s claim that it will make a big push for renewables, it will continue to rely on coal for its baseload generation. While renewables grow, coal power grows too. 
  • This duality is possible because India did not commit to any actual reductions in its greenhouse gas emissions at the Paris climate meeting in 2015.
  • Even this target India will need only 741 million tonnes of coal by 2022 however the Ministry of Coal has ambitious target of 1.5 billion tonnes by 2020.
  • The DNEP is silent on the fate of the new allottes of coal mines. The concern is what would they do with their coal if they can’t generate power with it.
  • Generation of power is licence free under the Electricity Act of 2003, so private miners do not need any licence to set up generating plants. All they need is a connection to the grid. Since the grid is State-owned, the Central government has adequate leverage to defer or delay connections.
  1. Based on failure to highlight the gradual substitution of internal combustion engines with electric vehicles.
  • The DNEP acknowledges increased oil and gas consumption in India decreased refining of oil and production of gas.Thus, India’s energy security does require a large strategic storage of oil to contain any vagaries in international supply chain.
  • But this strategic storage of oil does not tackle the systemic causes of this high dependence on oil.
  • The peaking of India’s oil demand could have been envisaged but has not been identified in the DNEP. But it recognises that by 2040, India’s oil import dependence may reach 55% from the current level of 33%. To curtail this import dependence DNEP promotes use of public transportation and railways to reduce oil consumption.
  • Unless electric transport is carefully planned, India’s dependence on imported oil is likely to continue.

Way Forward

  1. The drafting committees need to examine the paradigm shifts occurring in storage and electric vehicles to promote new technologies in renewable energy, such as smart grids, smart homes, battery storage and concentrated solar heat and power.
  2. New institutions, organisations and funding mechanisms for promoting renewable technologies need to be created not later than this year’s end.


Foreign Policy Watch: India-Middle East

[op-ed snap] Gathering clouds over West Asia



Mains Paper 2| Effect of policies and politics of developed and developing countries on India’s interests

From UPSC perspective, the following things are important:

Prelims level: JCPOA, Levant region

Mains level: Implications of the Iran-US nuclear deal on India and Indian interests in the West Asia.



  1. The article talks about the possibility of US violating the US-Iran nuclear deal and why is it necessary for the US to NOT do so.


Current scenario in West Asia-

  1. In the Levant, regional powers are scrambling to fill the vacuum created by the steady dismantling of the Islamic State’s caliphate across Syria and Iraq.
  2. Kurds have held an independence referendum which has drawn ire of their Iraqi, Turkish and Iranian neighbours.
  3. Turkey’s relations with the Europe are growing sourer every day.
  4. Qatar crisis– A crisis within the Gulf Cooperation Council (GCC), pitting Saudi Arabia and the United Arab Emirates against Qatar, has entered its sixth month, with no sign of resolution.
  5. UK, France, Germany and the EU all have expressed their categorical support to the nuclear deal.

The EU-Iran connection-

  1. EU-Iran trade is 30 times larger than US-Iran trade and it has increased by 95% the first half of this year itself.
  2. European banks, manufacturers and energy companies have also signed dozens of major agreements with Iran over the past year.
  3. EU has jurisdiction over the SWIFT network for cross-border banking transactions of which Iran is also a member.

What the US must do-

  1. Under U.S. law, the president must certify to Congress every 90 days that Iran is complying with the terms of the nuclear agreement. The next deadline is October 15. On this day the US must certify Iran’s compliance. If it refuses to do so then it might pave the way for the US Congress to re-impose sanctions on Iran.

Probable reactions from the world if US re-imposes sanctions-

  1. Europe would most likely take legal and diplomatic steps to protect its substantial commerce with Iran, even at the cost of a transatlantic crisis.
  2. China, Iran’s main trading partner, and Russia, Iran’s military ally in Syria, would defy U.S. sanctions with even greater enthusiasm.

Probable reaction from Iran-

  1. Even if the deal collapses Iran is unlikely to expel inspectors (inspecting its nuclear reactors) entirely, as it did in 1997, or pull out of Nuclear Non-Proliferation Treaty (NPT). This is because such actions would undercut Iran’s profession of peaceful intent and it stands to lose the moral high ground.
  2. The bargaining chip: Iran would try to restart accumulating centrifuges and nuclear fissile material that it had halted owing to an interim deal in 2013.

Uncertainties that could lead to war-

  1. It is difficult to gauge the future path of Iran’s segmented leadership which is divided between an elected president and an autocratic supreme leader.
  2. The erratic and impulsive behaviour of the US President makes things more unpredictable.

In the eventuality of war-

  1. Iran’s Shia militia could unleash war against US troops in Iraq and expand support to Afghan insurgents.
  2. Saudi Arabia-Iran tensions and the probability of US-Russia confrontation in the West Asia would increase dramatically.
  3. Pulling out of the Iran-US nuclear deal would be detrimental to the credibility of future US diplomacy.
  4. Implications for India
    i) India’s ambitious Chabahar project, scheduled for completion next year, could face fresh obstacles.
  5. ii) Iran- Pakistan relations may shift unpredictably.


  1. Tehran would have to have to balance the support it has garnered from the Europe while bargaining with the US, such that it would not provoke Europeans into siding, reluctantly, with Washington, and that it may push the U.S., Israel, or both, into a preventive war.
  2. In short, it would be virtually impossible to rebuild today the broad, multinational sanctions regime that helped push Iran to the negotiating table during 2013-15. Hence, it is better to persuade Iran that its economic integration into the world economy could continue regardless and therefore it should abide by the deal.
  3. The US must not risk its diplomatic credibility and push the West Asian region into spate of war which is still trying to recover from the gradual fall of the ISIS.


  1. Joint Comprehensive Plan of Action (JCPOA): This is the technical name for the nuclear deal agreed between Iran and six major powers (US, UK, France, Russia, China and Germany).
    i) It recognised Iran’s right to enrich uranium in exchange for a battery of tough, but time-bound, limits on nuclear activity for non-peaceful purposes.
  2. ii) However, critics of the deal said– it did not address Iran’s non-nuclear behaviour, such as support for Hezbollah and other militant organisations, and that the “sunset” clauses, which progressively relax the constraints on Iran over the next three decades, were too generous.
  3. Levant: The term refers to states or parts of states in Cyprus, Egypt, Iraq, Israel, Jordan, Lebanon, Palestine, Syria, and Turkey.
  4. SWIFT Network: The Society for Worldwide Interbank Financial Telecommunication (SWIFT) provides a network that enables financial institutions worldwide to send and receive information about financial transactions in a secure, standardized and reliable environment. (Headquarters: La Hulpe, Belgium)


RBI Notifications Finance and Banking

RBI panel suggests linking bank lending rates to a market benchmark


Mains Paper 3: Economy | Indian Economy Issues relating to planning

From UPSC perspective, the following things are important:

Prelims level: Base rate, MCLR, lending rates, etc.

Mains level: Important suggestions to hasten monetary policy.


Recommendations by an RBI’s committee

  1. A committee set up by the RBI has recommended linking bank lending rates to a market benchmark
  2. Why: to hasten monetary policy transmission as well improve transparency in rate setting by lenders

Other suggestions from the committee

  1. The panel recommended that all floating rate loans advanced from April could be referenced to one of three external benchmarks
  2. The panel has suggested a risk-free curve involving rates on treasury bills, or certificate of deposits rates or the central bank’s policy repo rate
  3. It also suggested that banks migrate all existing borrowers to the external benchmarked rate without any conversion fee or other charges within one year of its introduction, i.e. March 2019
  4. These borrowers are currently charged under benchmark prime lending rates, base rates or MCLR
  5. RBI will take a final view on suggestions of the panel after taking into account public feedback received until 25 October


For better understanding of the issue, Click here

A normal but good-in-parts monsoon


Mains Paper 3: Agriculture | Major crops cropping patterns in various parts of the country,

From UPSC perspective, the following things are important:

Prelims level: Not much

Mains level: Complement other articles on agriculture, with this newscard.


Good Southwest Monsoon

  1. A second normal southwest monsoon in a row, is a good thing in today’s rather gloomy economic environment
  2. But the rains this time have not been as good as last year
  3. Rainfall during the 4-month season turned out 5.2 per cent below its long period average (LPA)
  4. This was unlike in 2016, when the overall gap vis-à-vis the LPA was only 2.6 per cent and the rains were more evenly distributed across the monsoon

Comparison of output

  1. This year’s output of kharif foodgrains at 134.67 mt, to be marginally lower than the record 138.52 mt for 2016-17
  2. Kharif oilseeds output may also fall from 22.40 mt to 20.68 mt, as per the ministry’s first advance estimates released last week

[pib] Know about First BIMSTEC Disaster Management Exercise


The newscard is about BIMSTEC Disaster Management Exercise. Few takeaways:

Prelims Level: Make note of the full form, and main objective

Mains Level: Note the main focus of the program for your answer.

  1. Context: The First ‘BIMSTEC Disaster Management Exercise- 2017’ (BIMSTEC DMEx-2017) will be conducted by the National Disaster Response Force (NDRF)
  2. Advantage: This Exercise will be a platform for sharing Best Practices on all aspects of Disaster Risk Reduction (DRR)
  3. It will strengthen regional response and coordination for Disaster Management among the BIMSTEC member countries
  4. At the 17th BIMSTEC Senior Officials Meeting held in Kathmandu, Nepal, it was decided that India would organize the first annual Disaster Management Exercise for the region
  5. Main focus: Testing the region’s preparedness and resilience towards effective activation of inter-Governmental interaction/dialogue/agreements for immediate deployment of regional resources for disaster response
  6. It will help create synergy and synchronize efforts to institutionalize regional cooperation among the member countries
  7. Majority of the BIMSTEC countries are situated in the South Asian Region (SAR), prone to natural disasters such as floods, cyclones, earthquakes, avalanches and drought

[pib] Advances in Biotechnology


Prelims Level: Make note of the names of these missions, they might be asked in Prelims exam

Mains Level: Read the content carefully and note down the points for writing your answer on advancement in Biotechnology

Phyto-Pharma Plant Mission:

  1. Rs 50 crore Mission
  2. Aim: Conservation and cultivation of endangered and threatened endemic medicinal plants
  3. Discovery of new botanical drugs for unmet medical needs using the rich traditional ethno-botanical knowledge and biodiversity of these states
  4. Improve availability of authentic and quality botanical raw material on sustainable basis for a boom in the phyto-pharmaceutical industry
  5. Through this Mission, it is expected to enable farmers from NE states and phyto-pharmaceutical industry to become global leaders in production and export of some quality botanical drugs for unmet medical needs
  6. DBT will be the nodal coordinating and implementing department
  7. Objectives: Captive cultivation of selected medicinal plants of NER, which have great demand to ensure supply of authentic and quality botanical raw material to the user industries in the country
  8. Development of technology packages for production of GMP grade medicinal plant extracts for export markets
  9. Production of safe and efficacious phytopharmaceuticals from medicinal plants of NER for unmet medical needs using modern scientific tools and following global standards.

Brahmaputra Biodiversity and Biology Boat (B4):

  1. On the Brahmaputra River, a major ecology hotspot, in NER, in collaboration with DONER
  2. B4 will establish a large barge on the river with a well-equipped laboratory for analysis of all components of the entire ecosystem of the river and surroundings
  3. The B4 will link to all the local research institutions along the river, as well as national and international laboratories
  4. B4 will have capability to analyse soil, water, environment, plant and animal life, human health and agriculture and an equal component that involves local citizens in the experimental process of science in data generation and management
  5. B4 will also have a teaching laboratory for school/college children
  6. It is also proposed to have mobile satellite boat labs which will run along the tributaries of Brahmaputra to feed in data to the main B4

Frugal microscopy through the Foldscope

  1. A frugal microscope assembled from simple components, including a sheet of paper and a lens
  2. It is acting as a tool connecting students and science from the region, with the rest of the country

[pib] Know about VASTRA

Note4students: few takeaways from this newscard are:

Prelims Level: Make note of the points mentioned here

Mains Level: Not of much importance

  1. What: VASTRA 2017 is an all-encompassing trade fair and conference on Textiles and Apparel presenting a fusion of the finest and the latest in textiles products
  2. The event is jointly organized by Rajasthan State Industrial Development and Investments Corporation Limited (RIICO) and Federation of Indian Chamber of Commerce and Industry
  3. It is supported by the Government of Rajasthan

[pib] What is BIRAC?


Sometimes UPSC questions on such organizations. Few takeaways are:

Prelims Level: Note down the full form and aim of BIRAC

Mains Level: Not of much importance

  1. Biotechnology Industry Research Assistance Council (BIRAC) is a not-for-profit Public Sector Enterprise
  2. It is set up by Department of Biotechnology (DBT), Ministry of Science and Technology Government of India
  3. Aim: to empower the emerging biotech industry to undertake strategic research and innovation
  4. BIRAC is a new industry-academia interface and implements its mandate through a wide range of impact initiatives, be it providing access to risk capital through targeted funding, technology transfer, IP management and handholding schemes that help bring innovation excellence to Indian biotech firms and make them globally competitive
  5. BIRAC has initiated several schemes, networks and platforms that help to bridge the existing gap between industry-academia research and facilitate novel, high quality and cost-effective affordable technologies

[pib] Know about SATH


Few takeaways from this newscard are:

Prelims Level: Note down the full form, UPSC often asks them. Also make note of the aim.

Mains Level: Not important

  1. SATH– Sustainable Action for Transforming Human Capital
  2. It is a joint initiative of Government of Assam and NITI Aayog
  3. It aims to provide structured support to Assam in identifying key health priorities and implement the solutions towards transforming the health and improving the well-being of people of Assam
  4. The SATH program embodies the philosophy of co-operative federalism

[pib] What is 5G?


Few takeaways from this newcard on technology are:

Prelims Level: Make note of the benefits

Mains Level: Your answer on technology can include points from this newscard.

  1. India is at the cusp of a next generation of wireless technology 5G
  2. A digital transformation brought about through the power of connectivity is taking place in almost every industry
  3. The immense economic benefits from the 5G technology are:
  • Increasing GDP
  • Creating Employment
  • Digitizing the economy
  1. The primary goals of the forum are to achieve:
  • Early deployment of 5G in India
  • A globally competitive product development and manufacturing ecosystem targeting 50% of India market and 10% of global market over next 5 to 7 years
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