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  • The circuit breaker in the stock market

    The stock markets in India are witnessing historic single-day falls with an increase in the number of COVID-19 cases.  Since the indexes plunged more than 10 per cent each day earlier, a circuit breaker was triggered for the first time since 2009 halting trading.

    What are circuit breakers?

    • In June 2001, the SEBI implemented index-based market-wide circuit breakers.
    • Circuit breakers are triggered to prevent markets from crashing, which happens when market participants start to panic induced by fears that their stocks are overvalued and decide to sell their stocks.
    • This index-based market-wide circuit breaker system applies at three stages of the index movement, at 10, 15 and 20 per cent.
    • When triggered, these circuit breakers bring about a coordinated trading halt in all equity and equity derivative markets nationwide.

     

  • Oculudentavis khaungraae

    Scientists have found the skull of a 99-million-year-old flying dinosaur that is tinier than the tiniest bird known to humans.

    • The bird-like dinosaur was found stuck in a gob of tree resin that eventually hardened into amber, preserving it for millions of years to come.
    • The fossil was dug up in 2016 from a mine in Myanmar. It was so slight; it likely weighed just 2 grams.
    • The dinosaur skull holds around 100 sharp teeth, which hints at its ferocious nature despite its small size.
    • It even had teeth in the back of its jaw, under its eye.

     

  • Social Distancing and Flattening the Curve

    The last two days, a number of states in India have enforced measures aimed at reducing public gatherings. This is called “social distancing”.

    How does social distancing work?

    • To stem the speed of the coronavirus spread so that healthcare systems can handle the influx, experts are advising people to avoid mass gatherings.
    • Offices, schools, concerts, conferences, sports events, weddings, and the like have been shut or cancelled around the world, including in a number of Indian states.
    • An advisory by the US Centers for Disease Control recommends social distancing measures such as: reducing the frequency of large gatherings and limiting the number of attendees; limiting inter-school interactions; and considering distance or e-learning in some settings.

    What is the objective of such restrictions?

    • Compared to deadlier diseases such as bird flu, or H5N1, coronavirus is not as fatal —which ironically also makes it more difficult to contain.
    • With milder symptoms, the infected are more likely to be active and still spreading the virus.
    • For example, more than half the cases aboard a cruise ship that has docked in California did not exhibit any symptoms.
    • In a briefing on March 11, WHO officials said, “Action must be taken to prevent transmission at the community level to reduce the epidemic to manageable clusters.”
    • The main question for governments is to reduce the impact of the virus by flattening the trajectory of cases from a sharp bell curve to an elongated speed-bump-like curve.
    • This is being called “flattening the curve”. How does ‘flattening the curve’ help?
    • Limiting community transmission is the best way to flatten the curve.

    What was the curve like in China?

    • The numbers show that the virus spread within Hubei exponentially but plateaued in other provinces.
    • Some say it’s because many of these countries learnt from the 2003 SARS epidemic.
    • Just as Chinese provinces outside of Hubei effectively stemmed the spread in February, three other countries —South Korea, Italy, and Iran — were not able to flatten the curve.

    Flattening The Curve

    • In epidemiology, the idea of slowing a virus’ spread so that fewer people need to seek treatment at any given time is known as “flattening the curve.”
    • It explains why so many countries are implementing “social distancing” guidelines — including a “lockdown” order that affects 1.3 billion people in India, even though COVID-19 outbreaks in various places might not yet seem severe.

    What is the curve?

    • The “curve” researchers are talking about refers to the projected number of people who will contract COVID-19 over a period of time.
    • To be clear, this is not a hard prediction of how many people will definitely be infected, but a theoretical number that’s used to model the virus’ spread. Here’s what one looks like:

    • The curve takes on different shapes, depending on the virus’s infection rate.
    • It could be a steep curve, in which the virus spreads exponentially (that is, case counts keep doubling at a consistent rate), and the total number of cases skyrockets to its peak within a few weeks.
    • Infection curves with a steep rise also have a steep fall; after the virus infects pretty much everyone who can be infected, case numbers begin to drop exponentially, too.
    • The faster the infection curve rises, the quicker the local health care system gets overloaded beyond its capacity to treat people.
    • As we’re seeing in Maharashtra or Ahmedabad, more and more new patients may be forced to go without ICU beds, and more and more hospitals may run out of the basic supplies they need to respond to the outbreak.
    • A flatter curve, on the other hand, assumes the same number of people ultimately get infected, but over a longer period of time.
    • A slower infection rate means a less stressed health care system, fewer hospital visits on any given day and fewer sick people being turned away.

  • Is the worst really over for the country’s agricultural sector?

    Context

    Estimates of gross domestic product (GDP) released on 28 February confirmed that India’s economy is decelerating. The silver lining was growth in agriculture, which accelerated for the third quarter in a row to 3.5%.

    How agriculture sector has performed in the last few years?

    • Robust growth in the last 5 years: A look at the national accounts for a longer period shows robust agricultural growth during the first five years.
      • With agriculture growing at 3.17% per annum between 2013-14 and 2019-20.
      • This is remarkable, given that the broader economy is witnessing a slowdown.
    • Rural economy seen from the other indicators: A variety of other indicators show that the rural economy has been going through possibly its worst phase, with declining wage growth and farmer incomes causing serious distress.

    Crop sector growth rate at lowest

    • A clue to this disconnect between the national accounts and other indicators lies in a breakdown of the national accounts.
    • Crop sector growing at lowest in two decades: The GDP data for the agricultural sector shows that the crop sector, which accounts for 56% of total agricultural output and employs a majority of the farmers, has been growing at only 0.3%, the lowest in two decades.
      • By comparison, the sector grew 3.3% per annum during the 10 years under United Progressive Alliance governments.
    • Which sector of agri. is growing at a high rate? The agricultural sub-sectors that showed high growth between 2013-14 and 2018-19 were livestock (8.1%), forestry (3.1%) and fisheries (10.9%).
      • It is a puzzle what drove the high growth of livestock at a time when the crop sector was experiencing negligible growth.
      • The trend defies the logic: This defies past trends and is also difficult to believe, given contrasting trends in other indicators of livestock
    • The declining income of farmers and a decline in wages: The poor performance of the crop sector confirms the declining income of farmers, the majority of whom depend on crops for subsistence. Not surprisingly, even real rural wages are declining.
    • Inflationary pressure and hopes of growth in income of farmers: Hopes were kindled in the last three months as agricultural commodities showed signs of inflationary pressures, with food inflation hitting double-digit rates.
      • Increase in rural demand not the cause of inflation: A careful analysis of the data rules out rising rural demand as the cause of that inflationary trend.
      • Many price pressures were due to the mismanagement of cereal supplies by the government and supply shocks in vegetables.
      • In such circumstances, farmer income could not have risen. Some of this was also a result of food prices rising internationally.

    Trend pointing to the fall in agri. prices

    • Softening of food prices: Recent trends in international markets suggest a softening of food prices led by an overproduction of cereals and easing edible oil inflation. Following 3 factors may contribute to its fall.
    • Impact of fall in crude oil price: This trend will gain strength in the wake of the recent slide in crude oil prices.
      • With the global economy displaying signs of a slowdown, prices of agricultural commodities are likely to fall sharply.
      • Relation of food prices with oil prices: They tend to follow movements in crude oil prices, as was seen during the latter’s collapse in August 2014. In all likelihood, a similar decline in agricultural prices is upon us.
    • Food-grain stock with FCI: A second factor that may exacerbate the income troubles in agriculture is the presence of massive food-grain stocks with the Food Corporation of India.
      • This may slow the procurement of farm produce and lower price realizations, particularly cereals but also other crops.
    • The coronavirus outbreak: Lastly, the global slowdown due to the coronavirus outbreak is likely to dampen demand in the economy, and in turn hurt the agricultural sector.

    Conclusion

    • Limited room to improve the situation: These factors are likely to worsen agricultural incomes, and domestic policy has limited room to manoeuvre.
    • Opportunity to revive the demand: This situation is also an opportune time to revive rural demand The government could pass on some of the windfalls from the drop in oil prices to rural consumers. This could help lift rural incomes.
      • The government could also increase spending in rural areas to help boost demand and prevent a collapse in agricultural prices.
    • Worst for agriculture is not yet over: Whether the government uses the opportunity or fritters it away again will be known in the coming months. What appears certain for now, though, is that the worst of the rural slowdown is far from over.

  • New environment impact norm cuts time for public hearing

    A set of key updates to India’s Environment Impact Assessment (EIA) Act has been proposed to reduce the time given to people to air objections.

    Features proposed by the amendment

    • The draft EIA notification proposes to be an update to the EIA of 2006, which specifies a “minimum of 30 days” for people to respond.
    • The current version of the update, which will likely become law in 60 days, gives a “minimum of 20 days” of notice period.
    • The public hearing process is considered a key component of the EIA. An organisation has to submit a detailed plan, as part of the EIA process that details the nature, need, potential impact and remedial measures, if their proposed infrastructure project threatens to significantly impact a region.
    • It also requires that the public-hearing process be wrapped up in 40 days, as opposed to the existing norm of 45 days.

    Environmental Impact Assessment (EIA) in India

    • EIA is a management tool to minimize adverse impacts of developmental projects on the environment and to achieve sustainable development through timely, adequate, corrective and protective mitigation measures.
    • The MoEFCC uses EIA Notification 2006 as a major tool for minimizing the adverse impact of rapid industrialization on the environment and for reversing those trends which may lead to climate change in long run.
    • EIA has now been made mandatory under the Environmental (Protection Act, 1986 for 29 categories of developmental activities involving investments of Rs. 50 crores and above.

    EIA stages

    1. Screening: This stage decides which projects a full or partial assessment need study.
    2. Scoping: This stage decides which impacts are necessary to be assessed. This is done based on legal requirements, international conventions, expert knowledge and public engagement. This stage also finds out alternate solutions that avoid or at least reduce the adverse impacts of the project.
    3. Assessment & evaluation of impacts and development of alternatives: This stage predicts and identifies the environmental impacts of the proposed project and also elaborates on the alternatives.
    4. EIA Report: In this reporting stage, an environmental management plan (EMP) and also a non-technical summary of the project’s impact is prepared for the general public. This report is also called the Environmental Impact Statement (EIS).
    5. Decision making: The decision on whether the project is to be given approval or not and if it is to be given, under what conditions.
    6. Monitoring, compliance, enforcement and environmental auditing: This stage monitors whether the predicted impacts and the mitigation efforts happen as per the EMP.

    Scope of Environmental Clearance (EC)

    • Environmental clearance is required in respect of all new projects or activities listed in the Schedule to the 2006 notification and their expansion and modernization, including any change in product –mix.
    • Since EIA 2006 the various developmental projects have been re-categorised into category ‘A’ and category ‘B’ depending on their threshold capacity and likely pollution potential.
    • They require prior EC respectively from MOEFCC or the concerned State Environmental Impact Assessment Authorities (SEIAAs).
    • Where state level authorities have not been constituted, the clearance would be provided by the MOEFCC.

  • What is a Pandemic and various other terms?

    What is the news: The World Health Organization (WHO) has declared the COVID-19 outbreak a pandemic.

    What is a pandemic?

    • Simply put, a pandemic is a measure of the spread of a disease.
    • When a new disease spreads over a vast geographical area covering several countries and continents, and most people do not have immunity against it, the outbreak is termed a pandemic.
    • It implies a higher level of concern than an epidemic, which the US Centers for Disease and Control Prevention (CDC) define as the spread of a disease in a localised area or country.
    • There is no fixed number of cases or deaths that determine when an outbreak becomes a pandemic.
    • The Ebola virus, which killed thousands in West Africa, is an epidemic as it is yet to mark its presence on other continents.
    • Other outbreaks caused by coronaviruses such as MERS (2012) and SARS (2002), which spread to 27 and 26 countries respectively, were not labelled pandemics because they were eventually contained.

    Which outbreaks have been declared pandemics in the past?

    • A major example is the Spanish flu outbreak of 1918, which killed between 20-50 million.
    • Cholera pandemics have been declared multiple times between 1817 and 1975.
    • In 1968, a pandemic was declared for H3N2 that caused about a million deaths.
    • The last pandemic declared by the WHO was in 2009, for H1N1.

    Does the declaration change the approach to the disease?

    • Describing the situation as pandemic does not change WHO’s assessment of the risk posed by the virus. However, the categorization as a pandemic can lead to more government attention.
    • The categorization by WHO indicates the risk of disease for countries to take preventive measures.
    • It will help improve funding by international organisations to combat coronavirus.

    Difference Between Endemic, Epidemic, Outbreak and Pandemic:

    • AN EPIDEMIC is a disease that affects a large number of people within a community, population, or region.
    • A PANDEMIC is an epidemic that’s spread over multiple countries or continents.
    • ENDEMIC is something that belongs to a particular people or country.
    • AN OUTBREAK is a greater-than-anticipated increase in the number of endemic cases. It can also be a single case in a new area. If it’s not quickly controlled, an outbreak can become an epidemic.

    Epidemic vs. Pandemic

    • A simple way to know the difference between an epidemic and a pandemic is to remember the “P” in the pandemic, which means a pandemic has a passport. A pandemic is an epidemic that travels.

    Epidemic vs. Endemic

    • An epidemic is actively spreading; new cases of the disease substantially exceed what is expected.
    • More broadly, it’s used to describe any problem that’s out of control, such as “the opioid epidemic.”
    • An epidemic is often localized to a region, but the number of those infected in that region is significantly higher than normal.
    • For example, when COVID-19 was limited to Wuhan, China, it was an epidemic. The geographical spread turned it into a pandemic.
    • Endemics, on the other hand, are a constant presence in a specific location.
    • Malaria is endemic to parts of Africa. Ice is endemic to Antarctica.

    Endemic vs. Outbreak

    • Going one step farther, an endemic can lead to an outbreak, and an outbreak can happen anywhere.
    • Last summer’s dengue fever outbreak in Hawaii is as an example. Dengue fever is endemic to certain regions of Africa, Central and South America, and the Caribbean. Mosquitoes in these areas carry dengue fever and transmit it from person to person.
    • But in 2019 there was an outbreak of dengue fever in Hawaii, where the disease is not endemic. It’s believed an infected person visited the Big Island and was bitten by mosquitoes there.
    • The insects then transferred the disease to other individuals they bit, which created an outbreak.

    You can see why it’s so easy to confuse these terms. They’re all related to one another and there’s a natural ebb and flow between them as treatments become available and measures for control are put in place — or as flare-ups occur and disease begins to spread.

  • [pib] The Mineral Laws (Amendment) Bill, 2020

    Parliament has passed The Mineral Laws (Amendment) Bill, 2020 for amendments in Mines & Mineral (Development and Regulation) Act 1957 and The Coal Mines (Special Provisions) Act, 2015. The bill will transform the mining sector in the country boosting coal production and reducing dependence on imports.

    Acts to be amended

    • The MMDR Act regulates the overall mining sector in India.
    • The CMSP Act provides for the auction and allocation of mines whose allocation was cancelled by the Supreme Court in 2014.
    • Schedule I of the Act provides a list of all such mines; Schedule II and III are sub-classes of the mines listed in the Schedule I.
    • Schedule II mines are those where production had already started then, and Schedule III mines are ones that had been earmarked for a specified end-use.

    Features of the Mineral Laws (Amendment) Bill, 2020 

    Removal of restriction on end-use of coal

    • Currently, companies acquiring Schedule II and Schedule III coal mines through auctions can use the coal produced only for specified end-uses such as power generation and steel production.
    • The Bill removes this restriction on the use of coal mined by such companies.
    • Companies will be allowed to carry on coal mining operation for own consumption, sale or for any other purposes, as may be specified by the central government.

    Eligibility for auction of coal and lignite blocks

    • The Bill clarifies that the companies need not possess any prior coal mining experience in India in order to participate in the auction of coal and lignite blocks.
    • Further, the competitive bidding process for auction of coal and lignite blocks will not apply to mines considered for allotment to:
    1. a government company or its joint venture for own consumption, sale or any other specified purpose; and
    2. a company that has been awarded a power project on the basis of a competitive bid for tariff.

    Composite license for prospecting and mining

    • Currently, separate licenses are provided for prospecting and mining of coal and lignite, called prospecting license, and mining lease, respectively.
    • Prospecting includes exploring, locating, or finding mineral deposit.  The Bill adds a new type of license, called prospecting license-cum-mining lease.
    • This will be a composite license providing for both prospecting and mining activities.

    Non-exclusive reconnaissance permits holders to get other licenses

    • Currently, the holders of non-exclusive reconnaissance permit for exploration of certain specified minerals are not entitled to obtain a prospecting license or mining lease.
    • Reconnaissance means preliminary prospecting of a mineral through certain surveys.
    • The Bill provides that the holders of such permits may apply for a prospecting license-cum-mining lease or mining lease.   This will apply to certain licensees as prescribed in the Bill.

    Transfer of statutory clearances to new bidders

    • Currently,upon expiry, mining leases for specified minerals (minerals other than coal, lignite, and atomic minerals) can be transferred to new persons through auction.
    • This new lessee is required to obtain statutory clearances before starting mining operations.
    • The Bill provides that the various approvals, licenses, and clearances given to the previous lessee will be extended to the successful bidder for a period of two years.

    Reallocation after termination of the allocations

    • The CMSP Act provides for the termination of allotment orders of coal mines in certain cases.
    • The Bill adds that such mines may be reallocated through auction or allotment as may be determined by the central government.
    • The central government will appoint a designated custodian to manage these mines until they are reallocated.

    Prior approval from the central government

    • Under the MMDR Act, state governments require prior approval of the central government for granting reconnaissance permit, prospecting license, or mining lease for coal and lignite.
    • The Bill provides that prior approval of the central government will not be required in granting these licenses for coal and lignite, in certain cases.
    • These include cases where: (i) the allocation has been done by the central government, and (ii) the mining block has been reserved to conserve a mineral.

    Advance action for auction

    • Under the MMDR Act, mining leases for specified minerals (minerals other than coal, lignite, and atomic minerals) are auctioned on the expiry of the lease period.
    • The Bill provides that state governments can take advance action for auction of a mining lease before its expiry.

    With inputs from PRS India

  • Sahyadri Megha

    The University of Agricultural and Horticultural Sciences (UAHS), Shivamogga (K’taka) has developed ‘Sahyadri Megha’, a new red variety of paddy that is resistant to blast (a fungal disease) and rich in nutrients.

    Sahyadri Megha

    • It is a red variety of paddy that is resistant to blast disease and rich in nutrients.
    • It was developed under the hybridization breeding method by cross-breeding the best among the ‘Jyothi’ variety with that of ‘Akkalu’, a disease-resistant and protein-rich paddy variety.
    • The new variety will be notified under the Indian Seed Act 1966 shortly after which it will become part of the seed chain.

    Key features

    • The protein content in it is 12.48%, higher than the other red rice varieties grown.
    • The yield per hectare from ‘Sahyadri Megha’ is around 65 quintals, substantially higher than other red paddy varieties.
    • It is a medium-term paddy that can be grown when there is a delay in the onset of monsoon. It can be harvested after 120 days of sowing.

  • Corona, crude and credit

    Context

    Amid the gathering global crisis, its time India minds its own house.

    Panic and dislocation in Global markets

    • Panic at the level of the 2008 crisis: Global markets haven’t witnessed such panic and dislocation since the global financial crisis of 2008.
      • Global equity markets have collapsed, the US’s 10-year bond is at its lowest level ever, and crude prices underwent their largest single-day fall in 30 years.
    • Interaction of three global shocks: The market mayhem is the upshot of three global shocks interacting with each other.

    What are the three global shocks?

    • Negative demand shock due to Coronavirus: A negative demand shock around the world. As the coronavirus proliferates globally, households and businesses are understandably becoming risk-averse, and the consequent “social distancing” is expected to exert significant demand destruction around the world.
    • Negative supply shock emanating from China: The widespread industrial closures in China on the back of the COVID-19 outbreak will impact imports and supply chains in other countries, and thereby constitute an adverse supply shock for the rest of the world.
      • The magnitude of the shock: The 20-point drop in manufacturing output in the February PMI and the 17 per cent contraction in Chinese exports across January and February, suggests that the shock was large and immediate.
      • Supply shock likely to fade: That said, with the virus, gradually being contained in China, this supply shock is likely to fade even as the demand shock in the rest of the world widens and deepens.
    • Positive oil supply shock: The failure of oil producers to agree on production cuts has led to a price war with production increases on the anvil.
      • Cumulatively, crude pieces are down almost 50 per cent — about $30/barrel — since January.
      • A positive supply shock, which even adjusting for the concentrated stress in the oil sector, is growth-additive for the world and particularly for India.
    • India specific shock: There is a fourth India-specific force at play. The resolution and reconstruction of YES Bank was inevitable, but, at least temporarily, it is likely to result in a “flight to quality” in India’s financial sector, with resources moving from the financial periphery to the core.
      • Banks and NBFC may face difficulty in mobilising resources: To the extent that the periphery — smaller private banks and non-bank financial companies — will find it harder to mobilise resources, financial sector risk aversion could rise again.

    Implications for India’s macroeconomic stability

    • Significant negative impact due to export: India is a much more open economy than is widely believed with exports constituting almost 20 per cent of GDP. Therefore, the impact of the demand destruction around the world will not be trivial.
      • 40 bps decrease in the growth: If global growth is marked down by 100 basis points in 2020, which increasingly appears to be the case, we estimate that this would shave off about 40 bps from India’s growth through the export channel alone.
      • The cumulative drag to growth from exports and tourism would be a meaningful 60-70 bps.
    • Positive impact due to oil price shock: The near $30/barrel decline since January constitutes a large positive terms of trade shock for India — equivalent to about 1.3 per cent of GDP even accounting for reduced remittances from the Middle East.
      • Meaningful mitigant: If oil prices remain at this level for long, it would constitute a meaningful mitigant to India’s macro headwinds, boosting activity, dampening prices, creating fiscal space and reducing external imbalances.
    • Offsetting the negative impact of trade and tourism: Every $10 reduction in crude prices, boosts growths by about 20-25 bps.
      • Therefore, the $30 decline in crude, if it holds, should boost growth by about 60-70 bps, thereby largely offsetting the negative hit to growth from external trade and tourism.
    • Space for monetary easing: Furthermore, crude at $35-40, along with the global demand destruction is expected to generate large disinflationary forces, opening up space for monetary easing.
    • CAD would disappear: Finally, India’s current account deficit would virtually disappear, for the first time since 2003-04.

    The growth offset conditioned on coronavirus spread

    • The assumption in the offset: The above-mentioned growth offset, however, assumes that the coronavirus does not spread within India.
      • If India witnessed a rapid domestic proliferation, heightened risk aversion by economic agents could meaningfully hurt domestic demand.
    • A thought experiment on the impact on the economy: Discretionary services constitute about 35 per cent of GDP and have been growing at 8 per cent a year.
      • If that growth rate were to halve, that alone would deduct 140 bps from growth, and swamp any growth tailwinds from lower oil prices.
      • Furthermore, a “sudden stop” of demand to certain sectors may necessitate fiscal/liquidity support to ensure these don’t magnify into more disruptive credit events for the financial sector.
    • The best antidote to prolonged growth hit: The best antidote would be to aggressively contain the virus domestically, as authorities appear to be doing.
      • The experience from other countries suggests aggressive containment early in the process (isolation, quarantines, contract tracings, cancelled gatherings) reduces the growth rate of the virus from exponential to linear.
    • Macroeconomic outlook: The key to India’s macro outlook is whether the crude price decline can sustain and whether India can avoid a sharp domestic proliferation of COVID-19.

    Way forward

    • Pass the oil windfall to the public: Given current fiscal pressures, it’s tempting to advocate that the public sector appropriate much of the windfall. But with consumption under such pressure, there’s a strong case to pass this on to households.
      • A sharp cut in domestic fuel prices will boost household purchasing power and aggregate demand thereby creating contemporaneous counter-cyclical pressures.
    • Stick to the asset sale plan: While the turbulence in equity markets could understandably delay the government’s asset sale programme, it should not be allowed to derail it, given the criticality of asset sales to this year’s fiscal math.
      • Absorbing all the oil windfall through higher taxes as a substitute for asset sales would be a suboptimal mix.
    • Continue with the reforms: The salutary effects of falling crude prices — which would boost India’s macros relative to other emerging markets — should not mask the imperative to continue with reforms, particularly recognising and resolving any further financial sector stress proactively.

    Conclusion

    Global markets are witnessing their most acute volatility since 2008. All we can do is mind our own house amidst the gathering global storm.

     

  • Genome sequencing of Coronavirus

    Scientists across the world are trying to develop a line of treatment and a possible vaccine for COVID-19. However, with the most optimistic timelines we don’t see a line of treatment or vaccine arriving before next year.

    Genome sequencing of Coronavirus

    • A global effort is on to collect and analyse the genetic composition of the new virus, which would be key to developing a cure and a vaccine.
    • Genome sequence is the unique code of genetic material of any organism, and determines the characteristic of any organism.
    • Whole genome sequencing is the process of determining the complete DNA sequence of an organism’s genome at a single time.
    • The gene composition of novel coronavirus, for instance, is different from that of the influenza virus. Every organism has a unique genome sequence.
    • Laboratories in various countries have been isolating and sharing the genome sequences of the virus on an international platform.

    Why are so many genome sequences being isolated?

    • When viruses multiply, or reproduce, there is a copying mechanism that transfers the gene information to the next generation.
    • However, no copying mechanism is perfect. When the virus multiplies, there will be small changes, which are called mutations.
    • These mutations accumulate over time, and after prolonged periods, are responsible for evolution into new organisms.
    • Within a single reproduction, the changes are extremely minor. More than 95 per cent of the gene structure remains the same.

    How it helps scientists?

    • However, the small changes that occur are crucial to understanding the nature and behaviour of the organism.
    • In this case, for example, the small changes could provide scientists with information about the origin, transmission, and impact of the virus on the patient.
    • It could also hold clues to the differing effects the virus could have on patients with different health parameters.

    How many genome sequences are required?

    • India has far fewer positive cases compared to China, South Korea, Iran, Italy, or even the US.
    • Patients who have been infected with the virus in similar conditions are unlikely to show any significant changes in the genome sequences.
    • Patients with existing medical conditions could be other candidates from where genome sequences of this virus could be isolated.
    • This could help scientists to look for clues to possible impact of virus amidst those existing medical conditions.

    Currently, what is the most effective medication?

    • As of now, there is none such. Right now, drugs are being repurposed, meaning old drugs for similar diseases are being checked for their efficacy against COVID-19.
    • These drugs, if they work, will require clinical trials, and then can be made widely available for people.
    • In most cases, symptomatic treatment for fever, body ache, and cough will be sufficient. More severe cases will require oxygen and respiratory support.