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NEWSMONTHLY NEWS MAGAZINE
WHATSAPPENING?
THE IRON MAN STORYPRIME MINISTER UNVEILS
STATUE OF UNITY IN MEMORY OF SARDAR VALLABHAI PATEL
In India, fake newsa�ects voting behaviourin a big way
SELECTOnly the News That Matter
154Page
35Page
THE HYPER-ACTIVE PILLARHAS THE SUPREME COURT
BECOME HYPER-ACTIVE RECENTLY?94Page
And 25 other stories that matter to a civil service aspirant
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DECEMBER 2018EDITION 5
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Editor’s MessageThis is not a journalistic venture but an academic one designed to handhold keen and sincere UPSC aspirants. We do not claim this to be yet another surrogate window to the world. We are sure, nevertheless, that you would find this venture novel as well as useful.
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In This Issue
Sl. No.
Topic GS Paper
Page No.
1 Patents and Innovation in Higher Education Institutions II & III 4
2 Migration and Related Stories in India | & || 12
3 Ease of Doing Business and India ||| 19
4 Section 7 of The RBI Act and Related Issues || & ||| 25
5 India Bhutan Recent Developments || 29
6 Sardar Patel: Unifier of Modern India | 35
7 South Asian Association for Regional Cooperation (SAARC) || 39
8 Public Credit Registry (PCR) ||| 43
9 India’s Nuclear Triad ||| 51
10 India Iran Relations ||| 61
11 MSME: Loan for MSME in 59 Minutes ||| 66
12 Special Status of States || 74
13 Bid to Revive Insurgency in Punjab ||| 78
14 Tragic Encounter of Avni ||| 81
15 Intermediate-Range Nuclear Forces Treaty || 85
16 Cooperative Federalism || 90
17 Judicial Activism: Judges Legislate || 94
18 State-Sponsored Insurance and Ayushman Bharat || 98
19 Strengthening The Election Commission || 102
20 International Tourism Mart: Tourism Industry in India ||| 106
21 Sentinelese Issue and other PVTG Related Issues |, || & |V 112
22 Minimum Wages Act for Domestic Workers and Related Issues of Unorganised Sector Employees
|| 119
23 RCEP and Recent Development: India || 124
24 Water Deficit in India | & ||| 129
25 G20 Summit and its Contemporary Relevance || 135
26 Rural Electrification ||| 140
27 Fake News and Voting Behavior || & |V 154
28 Strengthening of Rupee Against All its Odds ||| 159
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PATENTS AND INNOVATION IN HIGHER EDUCATION INSTITUTIONS
Context
• IndiawitnessedsignificantchangesinIPRssincetheintroductionoftheNationalIPRPolicyin2016.
• Therewasa32%increaseinthenumberofpatentsgrantedin2017-18comparedtotheearlieryear.
• Whilethedisposalratehasincreased,thefilingrateforpatentshasnotchangedsignificantly.
• In2016-17,thePatentOfficereportedadipof3.2%infilingcomparedtothepreviousfinancialyear.
• Tocreateentrepreneurialuniversities,theUniversityGrantsCommission(UGC)hasaskedalluniversitiesinIndiatosetupIntellectualProperty(IP)Centres.
• ThePatentOfficeincreaseditsworkforcewiththeinclusionofnewexaminersandisonthelookoutformore.
• Thetimelineforfilingresponsestoofficialobjectionsforpatentshasbeenreducedbyhalf.
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Intellectual Property and Universities
• Patentshelpuniversitiestoimprovetheirranking,establishaninnovationecosystem,incubateknowledge-basedstart-ups,earnadditionalrevenueandmeasureresearchactivity.
• Thenumberofpatentsappliedfor,grantedandcommercialisedbyuniversitiesandinstitutesarefactoredintheNationalInstitutionalRankingFramework(NIRF)rankings.
• ThetoprankedengineeringinstitutesinIndiaarealsotheleadingfilersofpatent.
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• TheNationalAssessmentandAccreditationCouncilawardsupto24pointstoaninstitutewhichsetsupaninnovationecosystemandhasafacilityforidentifyingandpromotingIPRs.
Need for IP at Universities
• Patentshelpuniversitiestoimprovetheirranking,establishaninnovationecosystem,incubateknowledge-basedstart-ups,earnadditionalrevenueandmeasureresearchactivity
• Thenumberofpatentsappliedfor,grantedandcommercialisedbyuniversitiesandinstitutesisfactoredintheNationalInstitutionalRankingFramework(NIRF)rankings
• Whetherahighereducationalinstitutehasaninnovationecosystemcouldalsohaveabearing,withtheNationalAssessmentandAccreditationCouncil,awardingupto24pointstoaninstitutewhichsetsupaninnovationecosystemandhasafacilityforidentifyingandpromotingIPRs
• TheAllIndiaCouncilforTechnicalEducation(AICTE)modelcurriculumforitsmemberinstitutionslaysemphasisontheneedforIPReducationintechnicalinstitutes
The problem: Dearth of IP professionals
• DespitethepolicypushtohavemoreIP,wesimplydonothaveenoughIPprofessionalsinthecountry.
• TherisingdearthofIPprofessionalsisduetovariousinternationaltreatiesandtradeagreements,alongwiththelegal-centricapproachwherelawschoolsandcollegesaretheonlyinstitutionswhichmandateteachingthesesubjects.
• Indiahasapoorpatentagentdensity,withonlyabout2,000registeredpatentagentscurrentlyinpractice.
• ThelasttimewhenthePatentOfficeconductedthepatentagentexam,in2016,around2,600candidatestookit,apaltrynumberifonelooksattheambitiousgoalssetbytheIPRPolicy.
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Qualifications for an IP professional: Patent exam
• TheCentralgovernmentconductstheonlycompetitiveexaminationinthecountrytocheckaperson’sproficiencyinIP.
• Thisyear,thegovernmentconductedthecompetitiveexaminationtotestproficiencyinpatentlaw,atypeofintellectualpropertyright(IPR),afteragapoftwoyears.
• AnyIndiancitizenwithabachelor’sdegreeinscienceortechnologycantaketheexamination.
• UponclearingitthepersonisentitledtopractisebeforethePatentOfficeasaregisteredpatentagent.
• Qualifyingtheexamallowssciencegraduatestodraft,fileandprocurepatentsfromthePatentOfficeonbehalfofinventors.
Centres in Universities
• Thenewpolicyhaspusheduniversitiestofilemorepatents.
• KindledbythecalltohavemoreIPRs,thehighereducationsectorhaswitnessedmanyreforms.
• TheUGC’scalltouniversitieshascomeafteraseriesofpolicydirectivestointroduceawarenessaboutIPinhighereducationalinstitutions.
• TheAllIndiaCouncilforTechnicalEducation(AICTE)modelcurriculumforitsmemberinstitutionslaysemphasisontheneedforIPReducationintechnicalinstitutes.
• ThelackofIPprofessionalstoteachIPwasoneofthereasonstheinstitutesofhighereducationdonothavethemandatoryIPcourses.
• OnlinecoursesonIPRareavailableontheNationalProgrammeonTechnologyEnhancedLearningplatform.Thoughthousandsregistereveryyear,muchneedstobedonetobuildcapacityonIPinuniversities.
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• Despitetheinfrequentmannerinwhichtheexaminationhasbeenconducted,theprivatesectordoesgivegoodweightagetotheexaminationasitisconsideredtobethede-factoIPqualificationtoday.
Various international Treaties
• Therearetwomainbodies–WorldIntellectualPropertyOrganization(WIPO)underUNwhichadministers1-7treatiesmentionedbelow.8thtreatyisindependentofanyorganization.AnotherrelevantbodyisWorldTradingOrganization.9th(orTRIPS)isadministeredbyWTO.10thtreatycomesunderUNESCO.
• ParisConventionforIndustrialProperty,1883–SinceitdealsonlywithIndustrialproperty,itcoveredonlyPatentsandTrademarks.ItwasamongfirsttreatiestorecognizevariousprinciplesofinternationaltradelikeNationalTreatment,RightofPriority,Commonrulesetc.
• Bernconventionforliteraryandartisticworks,1886–Itprovidedforcopyrightsystem.Itdoesn’tprovideforanyformalitytoclaimprotection.Protectionisautomaticallyaccordedtoanycreation,providedworkisoriginalandotherconditionsunderthetreatyarefulfilled.Itmeansthatyourwork,iforiginal,isalreadyprotected.Youcanclaimthatyouhavecopyrightoverit.
• MadridAgreement,1881–Governstheinternationalrecognitionoftrademarks.Madeinternationalfillingseasyandcheap.
• Patentco-operationtreaty,1970–Itwasearliernotpossibleforanentitytoclaimprotectionindifferentcountriesbysingleapplication.Thiswasmadepossibleasitaimedforco-operationanditwasopenforallpartiestoParisconvention.
• BudapestTreatyof1980–Itmadepossiblepatentingformicro-organisms.Claimantisrequiredtodeposithisinventiononmicro-organismswithanAuthority–‘InternationaldepositoryofMicro-Organisms’underWIPO.Heshallmakealltheadequatedisclosures.
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• TrademarkLawTreaty,1994–Harmonizedadministrativeproceduresandintroduced‘servicemarks’inambitoftrademarks.Earliertrademarkswereaccordedonlytogoods.
• TheHagueagreementconcerningtheInternationalDepositof‘IndustrialDesign’1925–ItcreatedtheInternationalDesignBureauofWIPO.
• InternationalUnionforprotectionofnewvarietiesofplants,1961–Thisprovidesbreedersandfarmerstherighttonewplantvarieties.
• AgreementonTradeRelatedAspectsofIntellectualProperty–ItisalandmarkandmostcomprehensivetreatyonIntellectualproperty.Whileearliertreaties’subjectmatterswerespecific,TRIPSdealwith8kindsofpropertyrights–Patents,Trademarks,tradedress,Copyrights,IndustrialDesigns,PlantVarieties,IntegratedCircuitsandlayouts,andGeographicalIndication.Further,almostallcountriesarepartytoTRIP.Inearliertreatiesonlylimitedcountriesparticipated.ItalsoprovidesenforcementmechanismwhichwasnotavailableinWIPOtreaties.ItmandatedallmembercountriestomaketheirdomesticlawscomplainttoTRIPS.Indiapassedcertainlawsandamendedothers.India’sIPRregimenowstandsfullycomplainttoTRIPS.ForE.g.Indiaamendedpatentlawin2005toprovide‘product’patentprotection.Earlierprotectionwasavailableonlyto‘processes’.
• TRIPSwasresultsofdiscussionsheldinUruguayroundwhichledtoformationofWTO.ThistreatyisanoffshootofGeneralAgreementonTradeinGoods(GATT).ThistreatyprovidedarobustDisputeResolutionMechanismandstringentpenalprovisionsundertheauspicesoftheWTO.
Indian laws regarding IPR
• Law–CopyrightsAct1957,amendedin2012.Ministry–CopyrightOffice,MinistryofHumanRecourseDevelopment
• Law–PatentsAct,1970,amendedin2006.Ministry–DIPP,MinistryofCommerceandIndustry
• Law–TrademarkAct1999.Ministry–DIPP,Ministryof
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CommerceandIndustry
• Law–DesignsAct,2000.Ministry–DIPP,MinistryofCommerceandIndustry
• Law–GeographicalIndicationsofGoodsAct,1999.Ministry–DIPP,MinistryofCommerceandindustry
• Law–ProtectionofPlantvarietiesandfarmers’rightAct,2001.Ministry–DepartmentofAgricultureandCooperation,MinistryofAgriculture
• Law–Semi-conductorsandintegratedLayoutdesignAct,2000.Ministry–DepartmentofElectronicsandITMinistryofCommunicationandIT
• TraditionalKnowledgeDigitalLibrary.OverseenbycollaborationbetweentheCouncilofScientificandIndustrialResearch(CSIR)andtheDepartmentofAyurveda,YogaandNaturopathy,Unani,SiddhaandHomoeopathy(Dept.ofAYUSH),MinistryofHealth&FamilyWelfare,GovernmentofIndia.
• Law–BiologicalDiversityAct,2002inpursuanceofConventiononBiologicalDiversity,1993
Seven objectives of IPR Policy 2016
• IPRAwareness:Tocreatepublicawarenessabouttheeconomic,socialandculturalbenefitsofIPRsamongallsectionsofthesociety.
• GenerationofIPRs:TostimulatethegenerationofIPRs.
• LegalandLegislativeFramework:TohavestrongandeffectiveIPRlaws,whichbalancetheinterestsofrights-ownerswithlargerpublicinterest.
• AdministrationandManagement:Tomodernizeandstrengthenservice-orientedIPRadministration.
• CommercializationofIPRs:GetvalueforIPRsthroughcommercialization.
• EnforcementandAdjudication:Tostrengthenthe
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enforcementandadjudicatorymechanismsforcombatingIPRinfringements.
• HumanCapitalDevelopment:Tostrengthenandexpandhumanresources,institutionsandcapacitiesforteaching,training,researchandskillbuildinginIPRs.
Way forward
• TheambitiousgoalsetbyIndia’sIPRPolicywillberealisedonlywhentheexaminationbecomesthefoundationformakingacareerinIPR.
• Fine-tuningthepatentagentexaminationtocatertothegrowingIPneedsofthecountrycanbeasuccessfulwaytobuildabandofprofessionalsandcreatecareeropportunities.
• Inadynamicfieldsuchasintellectualproperty,inordertocreateabandofqualifiedIPprofessionals,thereshouldbeapushtowardspost-qualificationcontinuouseducationaswell.
• Toachievethis,theformat,membership,syllabusandthefrequencyofthepatentagentexaminationwillneedtobeaddressed.
• ThiswillnotonlyincreasethenumberandqualityofIPprofessionalsinthecountrybutalsobecomeanewcareerchoiceforgraduateswithadegreeinscienceandtechnology.
• IndiahaswitnessedsignificantchangesinIPRssincetheintroductionoftheNationalIPRPolicyin2016
• Thenewpolicyhaspusheduniversitiestofilemorepatents
• TheambitiousgoalsetbyIndia’sIPRPolicyrestsonhowuniversitiesembracepatents
Conclusion
To be sure, India has declared increasing its gross domesticexpenditureonR&Dto2%ofGDPasanationalgoalintheScience,Technologyand InnovationPolicy2013.But toachieve this, thegovernmentwill have to encouragemore academia - research- industry partnerships, promote inter-disciplinary research and
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createanationalscientifictemper.
Practice question
I. TheambitiousgoalsetbyIndia’sIPRPolicyrestsonhowuniversitiesembracepatents.CriticallyanalysethestateofinnovationsinIndianhighereducationinstitutes.(200words)
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MIGRATION AND RELATED STORIES IN INDIA
Context
• Thoughmigrationisexpectedtoenhanceconsumptionandliftfamiliesoutofabsolutepovertyattheorigin,itisnotfreefromdistress.
• Thisdistressisduetounemploymentorunderemploymentinagriculture,naturalcalamities,andinput/outputmarketimperfections.
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Data Regarding Internal Migration
• AccordingtoWorldPopulationreport33%ofIndianpopulationlivesinurbanareas.
• Economicsurvey2017saysthatinterstatemigrationinIndiaiscloseto9millionannually.
• Accordingto2011censusreporttotalnumberofinternalmigrantsinthecountry(accountingforinter-andintra-statemovement)atastaggering139million.
• UttarPradeshandBihararethebiggestsourcestates,followedcloselybyMadhyaPradesh,Punjab,Rajasthan,Uttarakhand,JammuandKashmirandWestBengal;
• MajordestinationstatesareDelhi,Maharashtra,TamilNadu,Gujarat,AndhraPradeshandKerala.
Factors of internal migration
• Migrationisdrivenbypush-pullfactors.
• Distresshasbeenapushfactorfromruralareas.
• ThedesireforbetteremploymentinurbanareashasbeenapullfactorsininternalmigrationinIndia.
• Datashowthatemployment-seekingistheprincipalreasonformigrationinregionswithoutconflict.
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The problems of migration
• Atthedestination,amigrant’slackofskillsisamajorhindranceinenteringthelabourmarket.
• Themodernformalurbansectorhasoftennotbeenabletoabsorbthelargenumberofruralworkersenteringtheurbanlabourmarket.
• Thishasledtothegrowthofthe‘urbaninformal’economy,whichismarkedbyhighpovertyandvulnerabilities.
• The‘urbaninformal’economyiswronglyunderstoodincountriessuchasIndiaasatransientphenomenon.
• Ithas,infact,expandedovertheyearsandaccountsforthebulkofurbanemployment.
• Mostjobsintheurbaninformalsectorpaypoorlyandinvolveself-employedworkerswhoturntopettyproductionbecauseoftheirinabilitytofindwagelabour.
• Thentherearevariousformsofdiscriminationwhichdonotallowmigrantstograduatetobetter-payingjobs.
• Migrantworkersearnonlytwo-thirdsofwhatisearnedbynon-migrantworkers,accordingto2014data.
• Further,theyhavetoincuralargecostofmigrationwhichincludesthe‘searchcost’andthehazardofbeingcheated.
• Oftenthesecostsescalateastheyareoutsidethestate-providedhealthcareandeducationsystem;thisforcesthemtoborrowfromemployersinordertomeettheseexpenses.
• Frequentborrowingforcesthemtosellassetstowardsrepaymentoftheirloans.
• Employmentopportunities,thelevelsofincomeearned,andtheworkingconditionsindestinationareasaredeterminedbythemigranthousehold’ssociallocationinhisorhervillage.
• Thedivisionofthelabourmarketbyoccupation,geographyorindustry(labourmarketsegmentation),evenwithintheurbaninformallabourmarket,confinesmigrantstothelowerend.
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• Often,suchsegmentationreinforcesdifferencesinsocialidentity,andnewformsofdiscriminationemergeinthesesites.
The benefits of migration
• Despitetheseissues,internalmigrationhasresultedintheincreasedwellbeingofhouseholds,especiallyforpeoplewithhigherskills,socialconnectionsandassets.
• Migrantsbelongingtolowercastesandtribeshavealsobroughtinenoughincometoimprovetheeconomicconditionoftheirhouseholdsinruralareasandliftthemoutofpoverty.
• Datashowthatacircularmigrant’searningsaccountforahigherproportionofhouseholdincomeamongthelowercastesandtribes.
• Thishashelpedtoimprovethecreditworthinessofthefamilymembersleftbehind—theycannowobtainloansmoreeasily.
• Thus,thereexistsaneedtoscale-upinterventionsaimedatenhancingthesebenefitsfromcircularortemporarymigration.
• Interventionstargetingshort-termmigrantsalsoneedtorecognisethefactthatshort-termmigrationtourbanareasanditsroleinimprovingrurallivelihoodsisanongoingpartofalong-termeconomicstrategyofthehouseholds.
• LocalinterventionsbyNGOsandprivateentrepreneursalsoneedtoconsiderculturaldimensionsreinforcedbycastehierarchiesandsocialconsequenceswhiletargetingmigrants.
Consequences of migration
• DemographicConsequences:
» Migrationmayhaveprofoundeffectsonthesize,structureandgrowthpatternsofpopulations.
» Migrationhaseffectsonbothpopulationsofthepatternsofpopulations.Migrationhaseffectsonbothpopulationoftheplacesthatpeopleleave&onthepopulationsofthoseinwhichtheysettle.
» Theseeffectsvarywithdifferenttypesofmigration&
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lengthofmigrantsstayinplaces.
» Theabsenceoflargenumberofeithermenorwomenmayhavealimitedimpactonthesendingsocietyinshorttermbutiftheyareabsentforlongerperiodstimetheirabsencewillhavesignificanteffectsonpopulationgrowthratesinthemediumandlongerterms.
• SocialConsequences:
» Migrationmayhaveimportanceonthecultures&societies.Italsohaseffectsontheculturesofboththeplacesthatmigrantsleaveandthoseinwhichtheyre-settle.
» Theseeffectsvarywithdifferenttypesofmigration,theskillsofthemigrants&thelengthsoftimeinvolved.
• PoliticalConsequences:
» Migrationcanhaveanimpactonpoliticsinboththeplaceswhichpeopleleaveandthosetowhichtheymove.Governmentswillhavetomakepoliciestoattractmigrants,topersuademigrantstoreturn,ortolimitmigrationtoensurethattheyhaveaccesstoskillsthattheyneed.
• EconomicConsequences:
» Migrationcanhavesignificanteffectoneconomics.Migrationhasimpactontheeconomiesthatpeopleleaveandthoseinwhichtheyre-settle.
» Theseeffectsvarywithdifferenttypesofmigration,theskillsofthemigrationandlengthoftimeinvolved.
National policy on internal migration is needed
• Accordingtoastudy,lessthan20%ofurbanmigrantshadprearrangedjobsandnearlytwo-thirdsmanagedtofindjobswithinaweekoftheirentryintothecity.
• Theprobabilityofmovingtoanurbanareawithaprearrangedjobincreaseswithanincreaseineducationlevels.
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• Accessestoinformationonemploymentavailabilitybeforemigratingalongwithsocialnetworks,tendtoreducetheperiodofunemploymentsignificantly.
• Socialnetworksinthesourceregionnotonlyprovidemigrantswithinformationonemploymentopportunities,butarealsocriticalassocialcapitalinthattheyprovideadegreeoftrust.
• Whilemigrantsinteractwitheachotherbasedonethnicties,suchtiesdissipatewhentheyinteractwithurbanelitestosecureemployment.
• InIndia,whilethebulkofpolicyinterventions,whichthemigrantscouldalsobenefitfrom,aredirectedtowardsenhancinghumandevelopment;someareaimedatprovidingfinancialservices.
• Asgovernmentinterventionsaredirectedtowardspovertyreduction,thereisadearthofdirectinterventionstargetedandfocusedonregions.
• Policiesonthiscouldbetwofold.Thefirstkindcouldaimatreducingdistress-inducedmigrationandthesecondinaddressingconditionsofwork,termsofemploymentandaccesstobasicnecessities.
• Policyinterventionshavetoconsiderthepushfactors,whichvaryacrossregions,andunderstandtheheterogeneityofmigrants.
Way forward
• Thereisaneedtodistinguishbetweenpolicyinterventionsaimedat‘migrantsforsurvival’and‘migrantsforemployment’.
• Continueddynamicinterventionsoverlongperiodsoftimewouldyieldbetterresultscomparedtosingle-pointstaticinterventions,especiallyinthecontextofseasonalmigrants.
• LocalbodiesandNGOswhichbringaboutstructuralchangesinlocalregionsneedtobeprovidedmorespace.
• Interventionsaimedatenhancedskilldevelopmentwouldenableeasierentryintothelabourmarket.
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• Wealsoneedindependentinterventionsaimedspecificallyataddressingtheneedsofindividualandhouseholdmigrantsbecausehouseholdmigrationnecessitatesaccesstoinfrastructuresuchashousing,sanitationandhealthcaremorethanindividualmigrationdoes.
• Variousinterventionsmustcomplementeachother.
• Forinstance,governmentinterventionsrelatedtoemploymentcanbesupportedbymarket-ledinterventionssuchasmicro-financeinitiatives,whichhelpintacklingseasonalityofincomes.
• Anotherimportantexampleis,improvedfinancialinfrastructuretoenablethesmoothflowofremittancesandtheireffectiveuserequiremoreattentionfromIndia’sgrowingfinancialsector.
• IndianeedssmarturbanisationinadditiontoMigrationpolicy:
• AstrategicshiftisneededthewayGovernmentlooksatmigrants.
• Over34%ofIndia’scurrentpopulationlivesinurbanareas,risingby3%since2011.
• Bysomeestimates,India’surbanpopulationcouldincreaseto814millionby2050.Andyet,citieslookandfeeldowntrodden,rivenwithpovertyandpoorinfrastructure,withlittlesemblanceofurbanplanning.
• Weneedtoempowerourcities,withafocuson:
» landpolicyreforms,
» grantingurbanlocalbodies,thefreedomtoraisefinancingand
» enforcelocallandusagenorms.
• KeyareastohavefulfilledSmartcitymission
» Socioeconomicaspect
» Physicalcomponents
» Institutionalmechanism
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• Ifthesethreeobjectivesarewoventogetherandineachother,itiseasytodiversifyandaddressnumberofproblemslikemobility,developmentofphysicalinfrastructure,ICT,health,andeconomy.
Conclusion
India’smigrationstoryiscomplicatedbecausecitieslikeFaridabad,LudhianaandSurathaveover55%ofmigrants,whereastherateinAgraandAllahabadisbelow15%.Globally,anestimated244millionpeopleare internationalmigrantswhomovebetweencountries.Internalmigrationisthreetimesthatnumber,affectingthelivesoffarmorepeople,althoughitisgivenmuchlessattentioninpoliticaldebatesandplanningprocesses
Practice question
Nationalpolicyoninternalmigrationisneededtofacilitateinclusivegrowthandreductioninregionaldisparities.Criticallyanalyse(250words)
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EASE OF DOING BUSINESS AND INDIA
Context
• India’srankinginthelatesteditionoftheWorldBank’sEaseofDoingBusinessIndexhasjumped23spotsto77among190economies.Itisasubstantialimprovementoverthelastcoupleofyears.
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Performance of various countries
• Thetopfiveoverallare:NewZealand,Singapore,Denmark,HongKongandKorea.TheU.S.ranks8th,downfrom6thlastyear.
• Asperthelatestreport,Afghanistanhadmovedupthemost,by16spots,from183thinlastyear’srankingto167ththisyear.
• ChinaandIndia—twoeconomieswiththelargestpopulations—areamongtop10improversthisyear.
• Afghanistan,Djibouti,Azerbaijan,Togo,Kenya,Côted’Ivoire,TurkeyandRwandaroundedoutthetop10mostimprovedlist.Inaddition,DjiboutiandIndiaaretheonlyeconomiestomakethe10topmostimprovedlistforthesecondconsecutiveyear.
Performance of India
• Indiaclimbed23spotsfromayearagotorank77outof190countriesintheWorldBank’slatestreportontheeaseofdoingbusiness.
• Itwasalsoamongthetop10mostimprovedeconomiesalongwithcountriessuchasChina,DjiboutiandAzerbaijan.
• TheeaseofdoingbusinessinIndiaimprovednotablyafteraseriesofreformsmadeiteasierforcompaniestogetconstructionpermits,paytaxesandtradeacrossborders.
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A nation’s ranking on the index is based on the average of 10 sub-indices
• Startingabusiness–Procedures,time,costandminimumcapitaltoopenanewbusiness
• Dealingwithconstructionpermits–Procedures,timeandcosttobuildawarehouse
• Gettingelectricity–procedures,timeandcostrequiredforabusinesstoobtainapermanentelectricityconnectionforanewlyconstructedwarehouse
• Registeringproperty–Procedures,timeandcosttoregistercommercialrealestate
• Gettingcredit–Strengthoflegalrightsindex,depthofcreditinformationindex
• Protectinginvestors–Indicesontheextentofdisclosure,extentofdirectorliabilityandeaseofshareholdersuits
• Payingtaxes–Numberoftaxespaid,hoursperyearspentpreparingtaxreturnsandtotaltaxpayableasshareofgrossprofit
• Tradingacrossborders–Numberofdocuments,costandtimenecessarytoexportandimport
• Enforcingcontracts–Procedures,timeandcosttoenforceadebtcontract
• Resolvinginsolvency–Thetime,costandrecoveryrate(%)underbankruptcyproceeding
• TheDoingBusinessprojectalsooffersinformationonfollowingdatasets:
• Distancetofrontier-Showsthedistanceofeacheconomytothe“frontier,”whichrepresentsthehighestperformanceobservedoneachoftheindicatorsacrossalleconomiesincludedsinceeachindicatorwasincludedinDoingBusiness
• Entrepreneurship-Measuresentrepreneurialactivity.Thedataiscollecteddirectlyfrom130companyregistrarsonthe
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numberofnewlyregisteredfirmsoverthepastsevenyears
• Goodpractices-ProvideinsightsintohowgovernmentshaveimprovedtheregulatoryenvironmentinthepastintheareasmeasuredbyDoingBusiness
• Transparencyinbusinessregulation-Dataontheaccessibilityofregulatoryinformationmeasureshoweasyitistoaccessfeeschedulesfor4regulatoryprocessesinthelargestbusinesscityofaneconomychallengestoeaseofdoingbusiness:
• Methodologychallenge-expandthecoverageoftheindextomakeitmorereal.Thekindoflawstheindexlooksatareatstatelevellawsandnotnationallaws.Somoreimportancehastobealsogiventothestatelevelexposuresandbusinessperformances.
• Needforfactormarketreforms-theareasofmakingthelandavailableshouldbeimprovedfrom190days.Landallotment,constructionpermitsshouldbeencouraged.Thelabourreforms-intermsofhiringandretrenchingmechanismshouldbethere.
• Crossborderbusiness,i.e.propertradepolicyisrequiredtoenhancebusinessopportunities.
Why is the index important?
• Theindexessentiallyfocusesonredtapeandadministrativehurdles.Itisbasedonfouressentialsourcesofinformation.
» Thelawsinthestatutebook
» Feedbackfromexperts
» Consultationwithnationalgovernment
» ConsultationswithWBstaff
• Aftertheinformationfromtheseplaces,theindexisputinplace
Areas of improvement:
• Entrepreneurswereabletostartabusinessmoreeasilyafter
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Indiaintegratedmultipleapplicationformsintoageneralincorporationform.Reformsalso“streamlinedtheprocessofobtainingabuildingpermitandmadeitfasterandlessexpensivetoobtainaconstructionpermit.”
• Lastyear,thecountryamendeditsinsolvencyandbankruptcycodewhichpreventedwillfuldefaultersfrombuyingupanyoftheirtroubledassetsatdiscountedrates.Thatstrengthenedaccesstocreditas“securedcreditorsarenowgivenabsolutepriorityoverotherclaimswithininsolvencyproceedings”.
• OtherareasofimprovementincludedsimplifyingIndia’scomplextaxstructurethatmadeiteasiertopaytaxes.InitiativesimplementedundertheNationalTradeFacilitationActionPlan2017-2020improvedtheefficiencyofcross-bordertradingandreducedthetimetakentomeetcompliancerequirements.
Analysis of Index and India’s performance
• TheIndexseekstomeasure11areasofbusiness,amongthemtheprocedures,timelinesandcostrelatedtoconstruction,protectionofminorityinvestors,paymentsoftax,timeandcosttoexportaproductorimportitandtoresolvecommercialdispute,thequalityofthejudicialprocessandtimetakenandthecostforresolutionorinsolvency.
• India’sscorewasboostedthistimebecauseofthestridesincross-bordertradingwiththestreamliningofpaperworkanddocumentation—thecountry’sscorehasmovedupfrom146lastyearonthiscountto80thistime.
• ThescoresshouldimprovefurthernexttimewithrecognitionofthelawsonGSTandmorecompaniestakingtheresolutionrouteundertheinsolvency.
• Theotherareaofimprovementisinconstructionpermits.Alltheseunderlinetheimportanceofsupply-sidereforms.
• TheotherimportanttakeawayfromtheIndexisthatwhatiscommonamongthetop-rankedeconomiesisthepatternofcontinuousreform.
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• Indiahasconsiderablegroundtocoveronthisfront:Whenitcomestoenforcingcontracts,thecountry’sscorehasbarelymovedinthelatestranking.
Limitations of the index for India
• ThisindexisbasedonwhatishappeningintwoIndiancities-DelhiandMumbai.Indiaisyettoseetheresultofindexwhichcovermorethaneightcities.
• Thus,tosaythateaseofdoingbusinesshasimproveddramaticallyforthewholeofcountrywouldbeexaggeration.
• AbetterindicatorwillcomebyWBwhichiscalledasEnterpriseSurveywhichactuallygoesintodetailshowenterprisesindifferentpartofthecountryperform.
• Thus,abroaderpictureofbusinessinIndiawillbeknownbymergingthefindingsofeaseofdoingbusinessandworldbankenterprisesurvey.
Way forward
• Thelessonhereistheabsenceofjudicialreforms,bureaucraticandlegalhurdlesarehurtingtheeconomy.
• InafederalstructurelikeIndia,cuttingtheredtapeoreasingproceduresacrossstatesisnoteasy.
• However,thesignsarethatmanystateshaverecognisedtheneedtoremovehurdlestoattractindustry.
• Businessmencomplainaboutthesteepcostofdoingbusinessandtheconstraintstheyfaceintranslatingideasintoviablecommercialventures.
• AstheWorldBankpointsout,economieswithbetterbusinessregulationsaretheonesthatcreatemorejobopportunitiesandthecountrieswithmoretransparentandaccessibleinformationhavelowerlevelsofcorruption.
• ThepushfordigitalgovernanceshouldenableIndiatocomeintotop30by2022inalmostallparametersexcepttwo,bankruptcyandenforcementofcontracts.Transitionto
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digitalfunctioninghasabarrierinthepoliticaleconomy.Butnowthepoliticalestablishmentsinallstateswouldliketohaveinvestmentsandresultsofthesame.Sothesituationisappropriateandright.
• Forbankruptcy,theprocessisonandthelegislativeframeworkisthere.Sothesystemshouldworkwellenoughwithclosemonitoringandsupervision.
• Therealachievementwillbetoachievetheenforcementofcontracts.ItistoughoneasitbasicallymeansbringingefficiencyinIndianjudicialsystem.Fromaneconomicperspective,theIndianjudiciaryhasbeenhighlyinefficientanddoesn’tdeliverasperthechangingtimesandneeds.
Conclusion
• Itisgoodtobenchmarkthecountry’sprogressonvariouscountsofstartingabusiness,butitisalsoimportantnottolosesightofthefactthatthisdoesnotmeasuremacrostabilitypoliciesanddevelopmentofthefinancialsector.
• Theboosttorankinghascomeatatimewheninvestmentactivityisfarfromvibrant.
• Thekeyisarevivalindemand,butremovingsystemicconstrainswouldhelpbusinessandindustrybecomemorecompetitive.
Practice Question
Supply-sidereformsenhanceIndia’seconomicprospects,howeverred-tapismandopaquesystemicinterventionscontinuetopullbackgrowth.Discuss.(200words)
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SECTION 7 OF THE RBI ACT AND RELATED ISSUES
Context
• Inanunprecedentedmove,thegovernmenthasreportedlyinvokedSection7oftheReserveBankofIndiaAct.
4
Background
• TheissueofinvokingSection7(1)ofRBIActcameupduringthehearingofAllahabadhighcourtinacasefiledbytheIndependentPowerProducersAssociationofIndiachallengingRBI’s12Februarycircular.Thehighcourt,inAugust,saidthegovernmentcouldissuedirectionstoRBIunderSection7ofRBIAct.
• Againstthisbackdrop,thegovernmentissuedalettertotheRBIgovernorseekinghisviewsonexemptionforpowercompaniesinrelationtothe12Februarycircular.Anotherinstancewaswhenthegovernmenton10Octobersoughtthegovernor’sviewsonusingRBI’scapitalreservesforprovidingliquidity.
Section 7 of the RBI Act
• AccordingtoSection7oftheRBIActthecentralgovernmentisempoweredtoissuedirectionsitconsidersnecessaryforpublicinteresttothecentralbankfromtimetotimeafterconsultationwiththeRBIgovernor.
• “TheCentralGovernmentmayfromtimetotimegivesuchdirectionstotheBankasitmay,afterconsultationwiththeGovernoroftheBank,considernecessaryinthepublicinterest,”Section7(1)oftheRBIActreads.
• Thesub-sectionunderSection7furtherreads,“Subjecttoanysuchdirections,thegeneralsuperintendenceanddirection
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oftheaffairsandbusinessoftheBankshallbeentrustedtoaCentralBoardofDirectorswhichmayexerciseallpowersanddoallactsandthingswhichmaybeexercisedordonebytheBank.”
• Section7(3)reads,“SaveasotherwiseprovidedinregulationsmadebytheCentralBoard,theGovernorandinhisabsencetheDeputyGovernornominatedbyhiminthisbehalf,shallalsohavepowersofgeneralsuperintendenceanddirectionoftheaffairsandthebusinessoftheBank,andmayexerciseallpowersanddoallactsandthingswhichmaybeexercisedordonebytheBank.”
• However,completeimplicationofthesectioncannotbedeterminedbecauseithasneverbeeninvokedinthehistoryofindependentIndia.
Section 7 seen as an extreme measure
• Thissectionhasneverbeenusedintillnow.Itwasnotusedevenwhenthecountrywasclosetodefaultinthedarkdaysof1991,norintheaftermathofthe2008globalfinancialcrisis.
• ItisnotclearhowthisSectionoperatessinceithasneverbeenused.
• Theaggressivemovecouldscandaliseasectionofacademiaandexperts,whileraisingquestionsaboutthegovernment’sintentionsandtheimpactonRBI’sautonomy.
The difference between government and RBI
• ThedisinclinationofRBItodilutethepromptcorrectiveaction(PCA)directiveimposeduponthe11publicsectorbanks.
• TherefusalofRBItorelaxactionsonsomemajorpowersectorcompanies.
• ThedifferenceinperceptionsaboutthereserveswithRBIandrightofthegovernmenttodemandtransferfromthemtothegovernmentasdemanded.
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Issue of autonomy of RBI
• BynowwehaveunderstoodthatgovtandcorporatearemoreinterestedinlowinterestrateswhichsupportinvestmentandgrowthwhileprimarytaskofRBIistocontrolinflation,keepingpricesstableandthusprotectingpurchasingpowerofmoney.
• Thisisnottosaythatgovtandcorporatedonotwantlowinflation,theydobuttheirprimaryfocuslieelsewhere.
• ItisinthiscontextthatautonomyofRBItodecideonmonetarypolicymattersbecomessoimportant.
Monetary Policy Transmission Conundrum
• RBIcutreporateby125bplastyearbutbanksdecreasedlendingrateonlyby60bp.
• RBIisnotthemainorevenprominentmoneysupplierforbanks,butretailsaversare.So,RBIratecutsdonotaffectcostoffundsmuchforthebanks
• Depositsratesaremostlyfixedandcannotbereduced;onlysubsequentdepositratescanbereducedi.e.IfIhavedepositedRs.100inFDfor5years,bankswillhavetopayme8%interestfornext5yearsnomatterwhetherRBIcutsratesornot
• SmallsavinginstrumentssuchasPPF,Postofficeaccountshavehighadministeredinterestrates.Ifbankscutdepositratesbelowthoserates,customerswillshifttothoseinstrumentsandbankswillloseoutonfunds
• Banksasweallknowareunderstress.Keepinglendingrateshighincreasestheirprofitmargins
• NowelldevelopedcorporatebondmarketisthereinIndia.Corporatehavenochoicebuttocometobankstoborrow.
Way forward
• Successfuldemocraciesworkthroughinstitutions.Anyunwantedinterventionleadtothecollapseofthetotalsystem.
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• ThecentralbanksinmanycountriesarealsonotcreaturesoftheirConstitutionsandtheinstancesofdifferencesbetweenthegovernmentsandcentralbanksarenotuncommon.
• Suchdifferencesreflectrobustnessofdemocracyandrespectforfunctionalautonomyoftheimportantstatutoryinstitutionlikeacentralbank,aslongasthedifferencesaresettledamicably.
• RBIboardwantedawantedaprovisioninthelawthatthegovernmenthastotakeresponsibilityfortheconsequencesofanypolicythatwasforcedontheRBIthroughSection7.Theproposedclausewashowevernotincludedinthesection.
• Therehasneverbeenanyoccasiontoinvokesection7sofar.Questionsarebeingaskedastowhythesituationhasbeenmadetodeterioratesomuchastobeforcedtoinvoketheprovision.
• ThereshouldbeacontinuousdialoguebetweengovernmentandRBIwithRBIhavingfunctionalautonomyintakingdecisions.
Conclusion
FinallyifatallthegovernmentisbentupongivingdirectionstoRBIundersection7,itshouldbereadytoincorporateaclausethatwas suggested in 1949 which clarifies accountability on actionforceduponRBI.InvokingofSection7willbeseenasadmissionoffailureonpartofgovernmenttoworkharmoniouslywithimportantinstitutionsinthesystemandappreciatetheirsensitivities.Thereisneedforeveryonetoworktowardsprotectinglong-terminterestsofthecountry’seconomy.
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INDIA BHUTAN RECENT DEVELOPMENTS
Context
• TsheringTobgaywillbenewPrimeMinisterofBhutan.DrukNyamrupTshogpaPartyhaswontherecentgeneralelectionsinBhutan.
• TheNationalAssemblyisthelowerhouseofBhutanParliament.ThisisthethirdgeneralelectionafterdemocracywasadoptedinBhutanin2008.
5
India Bhutan Relations
• IndiaandBhutanhavehadlong-standingdiplomatic,economicandculturalrelations.BhutanandIndiarelationsaregovernedbyafriendshiptreatythatwasrenegotiatedonlyin2007,subjectingtheHimalayannation’ssecurityneedstosupervision.
• TreatyofFriendshipin2007,whichbroughtintotheIndia-Bhutanrelationship“anelementofequality.”
• TheTreatyprovidesforperpetualpeaceandfriendship,freetradeandcommerce,andequaljusticetoeachother’scitizens.
India-Bhutan treaty of Friendship time line
• OnAugust8,1949,BhutanandIndiasignedtheTreatyofFriendship,callingforpeacebetweenthetwonationsandnon-interferenceineachother’sinternalaffairs.
• Indiare-negotiatedthe1949treatywithBhutanandsignedanewtreatyoffriendshipin2007.
• ThenewtreatyreplacedtheprovisionrequiringBhutantotakeIndia’sguidanceonforeignpolicywithbroadersovereigntyandnotrequireBhutantoobtainIndia’spermissionoverarms
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imports.
• Underthe2007India-BhutanFriendshipTreaty,thetwosideshaveagreedto“cooperatecloselywitheachotheronissuesrelatingtotheirnationalinterests.”
• NeitherGovernmentshallallowtheuseofitsterritoryforactivitiesharmfultothenationalsecurityandinterestofeachother
• Aschemetitled“ComprehensiveSchemeforEstablishmentofHydro-meteorologicalandFloodForecastingNetworkonriversCommontoIndiaandBhutan”isinoperation.Thenetworkconsistsof32Hydro-meteorological/meteorologicalstationslocatedinBhutanandbeingmaintainedbytheRoyal
• GovernmentofBhutanwithfundingfromIndia.ThedatareceivedfromthesestationsareutilizedinIndiaforformulatingfloodforecasts.
Importance of Bhutan
• BhutaninabufferstatebetweenIndiaandchina.Bhutansharesa470kmlongborderwithChina.
• Strategicimportance:TheChumbiValleyissituatedatthetrijunctionofBhutan,IndiaandChinaandis500kmawayfromthe“Chicken’sneck”inNorthBengal,whichconnectstheNortheastwithrestofthecountry.
• TocontaininsurgencyinNorth-East:BhutanhasinthepastcooperatedwithIndiaandhelpedtoflushoutmilitantgroupslikeUnitedLiberationFrontofAsom(ULFA)andNationalDemocraticFrontofBodoland(NDFB)fromtheHimalayannation.
• TocheckChineseinroadsinBhutan:ChinaisinterestedinestablishingformaltieswithThimphu,whereitdoesnotyethaveadiplomaticmission.BhutanisstrategicallyimportantforbothIndiaandChina.ChineseterritorialclaimsinwesternBhutanareclosetotheSiliguriCorridor.
• BeijingisreportedlyinsistingonBhutanestablishingtradeanddiplomaticrelationsasaquidproquoforabordersettlement.
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• AJointGroupofExpert(JGE)onFloodManagementhasbeenconstitutedbetweenIndiaandBhutantodiscussandassesstheprobablecausesandeffectsoftherecurringfloodsanderosioninthesouthernfoothillsofBhutanandadjoiningplainsinIndiaandrecommendtobothGovernmentsappropriateandmutuallyacceptableremedialmeasures.
Commercial Relations between India and Bhutan
• IndiaisBhutan’slargesttradingpartner.IndiaandBhutanhavesignedanAgreementonTrade,CommerceandTransiton12thNovember2016,whichprovidesforafreetraderegimebetweenthetwocountriesaimedatboostingthebilateraltradeformutualbenefit.
• TheAgreementalsoaimsatfacilitatingBhutan’stradewithcountriesthroughanimprovedprocedureforcontainercargo,strivingtowardsuseofelectronicmeanstofacilitatethemovementoftransitcargo,additionalentry/exitpointsinIndia,etc.
• ImportsfromIndiawereRs.5,650cr.accountingfor80%ofBhutan’stotalimports.Bhutan’sexportstoIndiastoodatRs3,270cr.(includingelectricity)andconstituted90%ofitstotalexports.One-thirdofBhutan’sexportstoIndiaiselectricity.
• Otheritemsofexportincludemineralssuchasferro-silica(theBhutanesehavebeencomplainingthattheseexportshavebeendeclining),cementanddolomite.
• TheGovernmentisplanningtobuildaminidryportinthebordertownofPhuntsholingtopromoteexportsthatareplaguedbylogisticaldifficultiesduetothedifficultterrainandpoorconnectivity.BhutansourcesthemajorityofitsimportrequirementsfromIndia.
Areas of Cooperation
A. Diplomatic Cooperation:
• RegularvisitsbetweenhighestlevelGovernmentfunctionariesofboththecountrieshavebecomeatradition.Forexample,
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in2014,ourPrimeMinisterchoseBhutanashisfirstcountrytovisitaftergettingelected.
• IndiasendsForeignServiceofficerstoBhutantomaintaingooddiplomaticrelations.
B. Security Cooperation:
• BorderrelationshipbetweenIndiaandBhutanhasremainedverypeaceful.Therearenooutstandingborderdisputesbetweenthetwocountries.
• Boththecountrieshaveconductedjointmilitaryoperationagainstinsurgents.Themostnotablewasin2004,theRoyalBhutanesearmyconductedoperationsagainstULFA(UnitedLiberationFrontofAssam).
C. Economic Cooperation:
• ThecurrencyofBhutanisIndianRupees
• IndiaremainsthesinglelargesttradingpartnerofBhutan
• In2016anewtradeagreementwassigned.ThisagreementaimsatcuttingdownthedocumentationrelatedtotradeandestablishingadditionaltradingpointsinBhutan
• IndiahasprovidedlargescalefinancialassistancetoBhutanforitsFiveYearPlans
• Inthehydro-powersector,manyhydro-powerprojectsinBhutanhasbeendevelopedwithIndia’sassistance
• Indiaimportsaround1540MWofhydro-powerfromBhutan
• IndiahasprovidedastandbycreditfacilityofRs1000crorestohelpBhutanovercometherupeeliquiditycrunch
D. Cultural and Educational Cooperation:
• IndiaBhutanfoundationwasestablishedin2003forimprovingpeopletopeoplecooperationintheareasofculture,educationandenvironmentprotection
• IndiahasprovidedscholarshipsforBhutanesestudentsstudyinginUndergraduateandPostgraduatecoursesinIndianinstitutions
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E. Environment Cooperation:
• IndiaisconsideringinvolvingBhutaninNationalMissionforSustainingtheHimalayas.
• TheprojectaimsatprotectingtheHimalayanecosystemthathasbeenendangeredbynumerousecologicalproblems.
Areas of Contentions
• TheMotorVehiclesAgreementthatwassignedin2015involvingBangladesh,Bhutan,IndiaandNepal(BBIN)wasblockedbyBhutan’supperhousecitingenvironmentalconcerns.
• IndiahasbeenoccasionallycomplainedbyBhutanformeddlinginitsinternalaffairs.ForExample,India’sdecisiontowithdrawitssubsidiesincookinggasandkerosenein2013.ThetimingofthedecisionwasfewweeksbeforegeneralelectioninBhutanandwasseenasanattempttoinfluencetheelectionoutcome.
• BhutanwantstoincreaseitsexportpowertarifftoIndiathatiscomplainedforbeinglesserthanitscostofproduction
China’s Role
• BhutanwasguidedbyIndiainitsDefenceandForeignaffairs.Theseprovisionswereremovedbythe2007treaty.ThishasthepotentialforChinatohaveinroadsinBhutan’sinternalaffairsandforeignpolicy.
• Bhutanhasproblemslikehighratesofunemploymentandnationaldebt.ThiscanbeasourceforaneconomicallystrongChinatoexertitsinfluence.
• TherehavebeenreportsthatChinaclaimsDoklamPlateauandotherpartsofChumbivalley(theylegallybelongtoBhutan)asitsownterritory.TheChumbivalleyisclosetoIndianstateofSikkimandChicken’sneck(thepassagebetweenmainlandIndiaandNorth-easternStateswhichisalsoknownasSiliguricorridor).ThisposessecurityconcernsforIndia.
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Conclusion
Hydro-electricpowergeneratedbyBhutan’srun-of-theriverdamsis the economic bedrock of the India-Bhutan relationship. Theupdated India-BhutanFriendship Treaty lays the foundation fortheirfuturedevelopmentinthe21stcentury.Tsheing’shandlingofrelationswithBhutan’stwogiantneighbourswillnotbeaneasytask.Butit ispossibleforBhutantoestablishtieswithChinaaswell as Indiawithout disturbing their regional Interests. Bhutancouldconsider“leavingthetri-junction(Doklam)unresolvedwhilesettling the remaining border issues and proceeding towardsdiplomatic relations with China.” This could trigger heightenedSino-India “economic and diplomatic competition in BhutanwithouterodingthesubstanceofIndia-Bhutanrelations.”
Practice Question
ThetraditionallyuniquebilateralrelationswithBhutan,characterizedbytrustandunderstandinghaveshadowedwithsuspicionandsensitivity.Comment(200words)
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SARDAR PATEL: UNIFIER OF MODERN INDIA
Context
• PrimeMinisterNarendraModiinauguratedtheStatueofUnity–theworld’stalleststatueofSardarVallabhaiPatel,inGujarat’sKevadiya,onPatel’sbirthanniversary.
• HebecameoneofthemostinfluentialleadersinGujaratasheorganisedthepeasantsofKheda,Borsad,andBardoliinGujaratinanon-violentcivildisobediencemovementagainstoppressivepoliciesimposedbytheBritishRaj.
• SardarVallabhbhaiPatel,popularlyknownastheIronManofIndia,oneofthemostinfluentialpersonalitiestohavefoughtforIndependence,SardarPatelwasborninGujarat,onOctober31,1875.
• Hence,thedayiscelebratedashisbirthanniversaryandisalsoobservedasRashtriyaEktaDiwasorNationalUnityDay.
• RememberingSardarPatel’sstupendousroleinintegratingtheprincelyStatesintoindependentIndia.
6
Force behind unification
• SardarPatel’sforesightandtactfulnavigationofthemostturbulentperiodinpost-Independence,andtheresolvehedemonstratedinintegratingthemorethan500disparateprincelyStates(565around)intotheDominionofIndia.
• LordMountbatten,thelastViceroyofIndia,hadsaid:“ByfarthemostimportantachievementofthepresentgovernmentistheunificationoftheStatesintotheDominionofIndia.
• Patelwasastatesmanwithastrongsenseofrealpolitic,a
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realisttothecoreandanearthypoliticianwhosesoleaimwastobuildastrongandunitedIndia.
• Patel’swisdom,foresight,patriotism,tact,persuasivepowersandabidingcommitmenttofairplayenabledhimtountangleahighlycomplexpoliticalandsocialproblemwithouttriggeringanykindofrevoltorcivilunrest.
Accession process
• ThelimitedscopeoftheInstrumentsofAccessionandthepromiseofawide-rangingautonomyandtheotherguaranteestheyoffered.
• Itgavesufficientcomforttomanyrulers,whosawthisasthebestdealtheycouldstrikegiventhelackofsupportfromtheBritish,andpopularinternalpressures.
• Thebiggestproblems,however,arosewithafewborderstates,suchasJodhpur,whichtriedtonegotiatebetterdealswithPakistan,withJunagadh,whichdidaccedetoPakistan,andwithHyderabadandKashmir,whichdeclaredthattheyintendedtoremainindependent.
Use of coercion when needed by launching ‘Operation Polo’
• Patelwasalsocompelledtousecoercionbylaunching‘OperationPolo’toliberateandintegrateHyderabadaftertheNizamofHyderabadentertainedfalsehopesofeitherjoiningPakistanorremainingindependent.
• Inaswiftoperationlastingfivedays,HyderabadStatewasliberatedinSeptember1948.Itwasthemostcriticaltimewhenthecountry’spoliticalunitywasinjeopardy,IndiafoundthemanofthemomentinSardarPatel.
• Hedisplayedamazingpatience,tactandasteelydeterminationindealingwithanintransigentruler,whorefusedtoseethewritingonthewallandevenwantedtotaketheissuetotheUnitedNations.
• Displayingstatesmanshipofthehighestorder,SardarPatelpreventedtheattemptstonotonlyBalkaniseIndiabut
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internationalisetheissueaswell.
• ThecomplicatedcaseofJunagarh,Gujarat,wasalsohandledwithdexteritybyPatel.TheproblemofJammuandKashmirmayhavebeenresolvedlongbackhadSardarPatelbeengivenafreehandtohandleitatthattime.
The Man of Integrity and Architect of the Indian civil services
• TheIronManofIndiawasthechiefarchitectofIndia’ssteelframe,thecivilservices.Thus,theAllIndiaServiceswereseenasanimportantcementingforceinpromotingtheunityandintegrityofthenation.
• HereadilyacceptedtheMahatmaGandhi’sadvicetowithdrawhiscandidacyforthepostofCongressPresidentinfavourofPanditNehruin1946,althoughamajorityofStateCongresscommitteessupportedhiscandidature.
• Itonceagainprovedhisnobleintentionofplacingthecountry’sinterestsaboveself.
• HisloveforthemotherlandwasbestdescribedbyMaulanaAzadwhenhesaid:“Hemadehischoiceoutoftwocoursesthatcomebeforeaman,namelywouldheliveforhiscountryorforhimself?Sardarchosehiscountry.”
• ItisinthefitnessofthingsthattheNationalPoliceAcademy(IPSTrainee-SardarVallabhbhaiPatelNationalPoliceAcademy)locatedontheoutskirtsofHyderabad,Telangana,isnamedafterhim,asatributetothestatesman.
Conclusion
• “Bycommonendeavourwecanraisethecountrytoanewgreatness,whilealackofunitywillexposeustofreshcalamities.”
• ThesepragmaticsbutprofoundremarksdefinedthevisionandthesterlingcharacterofSardarVallabhbhaiPatel,theprincipalunifierofmodernIndia.
• OurDuty:MakingSardarPateldreamsintoReality:
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• The‘StatueofUnity’isasymbolofboththeunityofheartsandthegeographicalintegrityofourmotherland.
• Itisareminderthatdivided,wemaynotbeevenabletofaceourselves.United,wecanfacetheworldandscalenewheightsofgrowthandglory.
• SardarPatelworkedwithastonishingspeedtodismantlethehistoryofimperialismandcreatethegeographyofunitywiththespiritofnationalism.HesavedIndiafromBalkanizationandintegratedeventheweakestoflimbsintothenationalframework.
• Today,we,the130croreIndiansareworkingshouldertoshouldertobuildaNewIndiathatisstrong,prosperousandinclusive.
• Everydecisionisbeingtakentoensurethatthefruitsofdevelopmentreachthemostvulnerable,withoutanycorruptionorfavouritism,justasSardarPatelwouldhavewantedit.
Practice questions
I. SardarPateltheunifierofmodernIndia.Comment(150words)
II.CompareandcontrasttheunificationpoliciesusedbySardarPatelintheunificationofIndiawiththatofBismarckofGermany.(200words)
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SOUTH ASIAN ASSOCIATION FOR REGIONAL COOPERATION (SAARC)
Context
• GivingaboosttoChina’slongstandingdemand,PakistanrecentlysaidthatitsupportedactiveparticipationofChinaattheplatformoftheSouthAsianAssociationforRegionalCooperation(SAARC).
7
About SAARC
• TheSouthAsianAssociationforRegionalCooperation(SAARC)wasestablishedwiththesigningoftheSAARCCharterinDhakaon8December1985.
• TheSecretariatoftheAssociationwassetupinKathmanduon17January1987.
• SAARCcomprisesofeightMemberStates:Afghanistan,Bangladesh,Bhutan,India,Maldives,Nepal,PakistanandSriLanka.
» ImportantobjectivesoftheAssociationasoutlinedintheSAARCCharterare:
» topromotethewelfareofthepeoplesofSouthAsiaandtoimprovetheirqualityoflife;
» toaccelerateeconomicgrowth,socialprogressandculturaldevelopmentintheregionandtoprovideallindividualstheopportunitytoliveindignityandtorealizetheirfullpotentials;
» topromoteandstrengthencollectiveself-relianceamongthecountriesofSouthAsia.
China’s demand to be a member in SAARC
• ChinahasastatusofanobserverstateinSAARC.
• However,anobserverstatecangetinvolvewithSAARC
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membersonspecificinitiativesandtheydonothavevotingrights.
• ChinaenteredSAARCasanobserverin2005,supportedbymostmemberstates.
• China’sentrytotheSAARCisbothathreatandopportunityforIndia.
• ItcaneitherhelpinbringinmoreintegrationintheregionormaydilutetheverypurposeofSAARCbyinitiatingpartisanblockswithinthegroupings.
India’s concerns and fears
• IfChinaisgivenagreaterrole,Indiafearsthatitsneighbourswillcometogethertoopposethecountry’sinterests,particularlyundertheinfluenceofPakistanandChina.
• India’sneighboursareattractedtoChina,becauseofitsgreatereconomicresources,asalsoithasthepotentialtocounterIndia.China’sinfluencecanbewitnessedeveninNepal.
• ToenhancestrategictieswithNepal,Chinahasbeeninvestingheavilyinthatcountry;ithasopenedland-portbetweenNepalandTibetnamedasKyirongwhichwillaffecttheregionalstrategicbalance.
• ThegrowingfriendshipwithChinaandPakistanisviewedbymanyasajointtactictooffsetIndia’sdominanceintheSouthAsianregion.
• Oneofthemostfamousproject,isChina-PakistanEconomicCorridor(CPEC)whichstrategicallyaimsatprovidinglinksbetweentheoverlandSilkRoadandmaritimeSilkRoad.Duetothisproject,ChinabecomesoneofthemajorinvestorsinPakistanbyunderminingIndia’ssovereigntyoverPoK.
• IthasbeenagreedthatChina’sentryinSAARCasafull-membercangiveapushtoSAARCtogrowasaregionalblocasChina’sglobaleconomicinfluencecanhelpSAARCininternationalforum.
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• But,growingalliancesbetweenChinaandPakistanmayworkagainstIndiaandwhichwillhampertheregionalprogress.
• IthasalsobeenfearedthatChinamayblocktheprojectswhicharebothstrategicallyandeconomicallyimportantforIndia.
Issues within SAARC
• SAARC’semphasisontheprincipleofunanimityfordecisionmakingandexclusionofcontentiousbilateralissuesfromdeliberationsmakestheorganisationfragileandvulnerable.
• Inthelast33years,SAARChasheldonly18Summits,andmanyhavebeenpostponedorcanceledduetovariousissues.
• Thecancellationandpostponementofregularmeetingsembodythepersistenceofthisindifferencetodayaswell.
Way ahead
• Chinaisbecomingmemberofdifferentregionalblocsduetoitsgrowingeconomicandmilitarymight.
• China’sactiveandaggressivediplomacy,tradeandinvestments,manycooperativeagreementswithSAARCnationsisthusenablingittohaveagreaterinfluenceinsouthAsia.
• Indianeedstore-thinkitsregionalstrategiesasriseofChinawillimpactIndia.OftenitisviewedthattheriseofChinawilldecreaseIndia’sinfluenceinSouthAsia.
Conclusion
The likelihood of amending the SAARC Charter to make theorganisation’s structureandmandateeffective is limiteddue totheconflictingviewsofmembercountriestostructuralreforms.The chances of resolving India-Pakistan conflict, the prominentfactorbehindthecomatosestatusoftheorganisation,arelimited.Kashmir is the bone of contention between these two leadingSouthAsianpowers.On theonehand,neither theuseof forcenordiplomacyisexpectedtobringpeacetoKashmirinthenear
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future.However,thegreaterintegrationoftheregionispossiblewiththerefurbishingofSAARC.
Practice Question
1. AsSAARCislosingoutitssteam,thechallengeofterrorismhasspreadingacrosstheregion.DoyouagreethattheurgentrejuvenationofSAARCcanbeacredibledeterrentinalleviatingthismenace?(200words)
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PUBLIC CREDIT REGISTRY (PCR)
Context
• TheReserveBankhasinitiatedstepstosetupawide-baseddigitalPublicCreditRegistry(PCR)tocapturedetailsofallborrowers,includingwillfuldefaultersandalsothependinglegalsuitsinordertocheckfinancialdelinquencies.
• ThePCRwillalsoincludedatafromentitieslikemarketregulatorSEBI,theCorporateAffairsMinistryandtheInsolvencyandBankruptcyBoardofIndiatoenablebanksandfinancialinstitutionstogeta360-degreeprofileofexistingandprospectiveborrowersonareal-timebasis.
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Public Credit Registry
• ThePCRwillbeanextensivedatabaseofcreditinformationforIndiathatisaccessibletoallstakeholders.Theideaistocaptureallrelevantinformationinonelargedatabaseontheborrowerand,inparticular,theborrower’sentiresetofborrowingcontractsandoutcomes.
Management of PCR
• Generally,aPCRismanagedbyapublicauthoritylikethecentralbankorthebankingsupervisor,andreportingofloandetailstothePCRbylendersand/orborrowersismandatedbylaw.
• Thecontractualtermsandoutcomescoveredandthethresholdabovewhichthecontractsaretobereportedvaryindifferentjurisdictions,buttheideaistocaptureallrelevantinformationinonelargedatabaseontheborrower,inparticular,theborrower’sentiresetofborrowingcontractsandoutcomes.
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Need for a PCR
• Acentralrepository,which,forinstance,capturesandcertifiesthedetailsofcollaterals,canenablethewritingofcontractsthatpreventover-pledgingofcollateralbyaborrower.
• Inabsenceoftherepository,thelendermaynottrustitsfirstrightonthecollateralandeitherchargeahighcostontheloanoraskformorecollateralthannecessarytopreventbeingdilutedbyotherlenders.
• Thisleadsto,whatineconomicsistermedas,pecuniaryexternality–inthiscase,aspilloverofoneloancontractontooutcomesandtermsofotherloancontracts.
• Furthermore,intheabsenceofapubliccreditregistry,the‘good’borrowersaredisadvantagedinnotbeingabletodistinguishthemselvesfromtherestinopaquecreditmarkets;theycouldpotentiallybesubjectedtoarentbeingextractedfromtheirexistinglenderswhoenjoyaninformationmonopolyoverthem.
• Thelendersmayalsoenduppickingupfreshclientswhohaveahistoryofdelinquencythatisunknowntoalllendersandthiswayfacegreateroverallcreditrisk.
Benefits of having a PCR
• APCRcanpotentiallyhelpbanksincreditassessmentandpricingofcreditaswellasinmakingrisk-based,dynamicandcounter-cyclicalprovisioning.
• ThePCRcanalsohelptheRBIinunderstandingiftransmissionofmonetarypolicyisworking,andifnot,wherearethebottlenecks.
• Further,itcanhelpsupervisors,regulatorsandbanksinearlyinterventionandeffectiverestructuringofstressedbankcredits.
• APCRwillalsohelpbanksandregulatorsascreditinformationisa‘publicgood’anditsutilityaretothecreditmarketatlargeandtosocietyingeneral.
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• Creditinformationisnowavailableacrossmultiplesystemsinbitsandpiecesandnotinonewindow.
• Dataonborrowingsfrombanks,non-bankingfinancialcompanies,corporatebondsordebenturesfromthemarket,externalcommercialborrowings(ECBs),foreigncurrencyconvertiblebonds(FCCBs),masalabonds,andinter-corporateborrowingsarenotavailableinonedatarepository.
• PCRwillhelpcaptureallrelevantinformationaboutaborrower,acrossdifferentborrowingproductsinoneplace.
• Itcanflagearlywarningsonassetqualitybytrackingperformanceonothercredits.
Task force on PCR
• TheReserveBankofIndia(RBI)hadformedahigh-leveltaskforceonpubliccreditregistry(PCR)forIndia.ThetaskforcewaschairedbyYMDeosthalee.
• Thetaskforcehassuggestedtheregistryshouldcaptureallloaninformationandborrowersbeabletoaccesstheirownhistory.
• Dataistobemadeavailabletostakeholderssuchasbanks,onaneed-to-knowbasis.Dataprivacywillbeprotected.
Wilful Defaulters: On RBI
• Simply,defaultmeansnon-paymentofaloanavailedbyaborrower.
• Awilfuldefaulterisanentityorapersonthathasnotpaidtheloanbackdespitetheabilitytorepayit.
• Thoughwilfuldefaultcoverstheabovementionedbroadareas,majorinstanceisnon-repaymentofloanavaileddespitetheabilitytopaytheloan.
• Hence,itisinthesenseofnon-repaymentofdebtthatwilfuldefaultisseriouslydefined.
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Areas covered under wilful default
• AspertheRBIregulations,wilfuldefaultcoversseveralbroadareas:Deliberatenon-paymentoftheduesdespiteadequatecashflowandgoodnetworth,siphoningoffoffundstothedetrimentofthedefaultingunit,assetsandproceedsbeingunderutilised,misrepresentation/falsificationofrecords,disposal/removalofsecuritieswithoutbank’sknowledgeandfraudulenttransactionsbytheborrower.
A ‘wilful default’ would be deemed to have occurred if any of the following events is noted
• Theunithasdefaultedinmeetingitspayment/repaymentobligationstothelenderevenwhenithasthecapacitytorepay.
• Theunithasdefaultedinmeetingitspayment/repaymentobligationstothelenderandhasnotutilisedthefinancefromthelenderforthespecificpurposesforwhichfinancewasavailedofbuthasdivertedthefundsforotherpurposes.
• Theunithasdefaultedinmeetingitspayment/repaymentobligationstothelenderandhassiphonedoffthefundssothatthefundshavenotbeenutilisedforthespecificpurposeforwhichfinancewasavailedof,norarethefundsavailablewiththeunitintheformofotherassets.
• Theunithasdefaultedinmeetingitspayment/repaymentobligationstothelenderandhasalsodisposedofforremovedthemovablefixedassetsorimmovablepropertygivenforthepurposeofsecuringatermloanwithouttheknowledgeofthebank/lender.
• AccordingtotheRBIregulations,theidentificationofthewilfuldefaultshouldbemadekeepinginviewthetrackrecordoftheborrowersandshouldnotbedecidedonthebasisofisolatedtransactions/incidents.Thedefaulttobecategorisedaswilfulmustbeintentional,deliberateandcalculated.
The Fugitive Economic Offenders Act, 2018
• TheBillaimstostopeconomicoffenderswholeavethe
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countrytoavoiddueprocess.OffencesinvolvingamountsofRs100croreormorefallunderthepurviewofthislaw.
• EconomicoffencesarethosethataredefinedundertheIndianPenalCode,thePreventionofCorruptionAct,theSEBIAct,theCustomsAct,theCompaniesAct,LimitedLiabilityPartnershipAct,andtheInsolvencyandBankruptcyCode.
Who is a ‘fugitive economic offender’?
• AccordingtoSection4ofthelaw,a‘fugitiveeconomicoffender’is“anyindividualagainstwhomawarrantforarrestinrelationtoascheduledoffencehasbeenissuedbyanycourtinIndia,who:
» leavesorhasleftIndiasoastoavoidcriminalprosecution;or
» RefusestoreturntoIndiatofacecriminalprosecution.”
How is a person declared as an offender?
• ADirector,appointedbythecentralgovernment,willhavetofileanapplicationtoaSpecialCourttodeclareapersonasa‘fugitiveeconomicoffender’.
• UnderClause(2)ofSection6,theapplicationmustcontain:
» “(a)reason/sforthebeliefthatanindividualisafugitiveeconomicoffender;
» (b)Anyinformationavailableastothewhereaboutsofthefugitiveeconomicoffender;
» (c)Alistofpropertiesorthevalueofsuchpropertiesbelievedtobetheproceedsofcrime,includinganysuchpropertyoutsideIndiaforwhichconfiscationissought;
» (d)AlistofpropertiesownedbythepersoninIndiaforwhichconfiscationissought;
» (e)Alistofpersonswhomayhaveaninterestinanyofthepropertieslistedundersub-clauses(c)and(d).”
• TheDirectorhasthepowertoattachanypropertythe
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accusedholds.
Procedure to follow
• TheCourtwillissueanoticetothepersonnameda‘fugitiveeconomicoffender’.
• Withinsixweeksfromthedateofnotice,thepersonwillhavetopresentthemselvesat“aspecifiedplaceataspecifiedtime”.
• Iftheoffenderfailstodoso,theywillbedeclareda‘fugitiveeconomicoffender’andtheirpropertiesaslistedintheDirector’sapplicationwillbeconfiscated.
• No.Section11oftheActdisqualifiesthosedeclaredasoffendersfromeitherfilingordefendingacivilclaimincourt.
• TheSpecialcourtwillappointan‘administrator’tooverseetheconfiscatedproperty.Thispersonwillberesponsiblefordisposingofthepropertyaswell,andthepropertywillbeusedtosatisfycreditors’claims
• Recently,RBIDeputyGovernorViralAcharyamadeacaseforsettingupaPublicCreditRegistry(PCR),incorporatinguniqueidentifiers:AadhaarforindividualborrowersandCorporateIdentificationNumberforfirms.
Public Credit Registry:
• Apubliccreditregistryisaninformationrepositorythatcollatesallloaninformationofindividualsandcorporateborrowers.
• Acreditrepositoryhelpsbanksdistinguishbetweenabadandagoodborrowerandaccordinglyofferattractiveinterestratestogoodborrowersandhigherinterestratestobadborrowers.
• Themoveisbasedontherecommendationsofacommittee,headedbyY.M.Deosthalee.PCRwilladdressissuessuchasinformationasymmetry,improveaccesstocreditandstrengthenthecreditcultureamongconsumers.
• Itcanalsoaddressthebadloanproblemstaringatbanks,as
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corporatedebtorswillnotbeabletoborrowacrossbankswithoutdisclosingexistingdebt.
• APCRmayalsohelpraiseIndia’srankintheglobaleaseofdoingbusinessindex.
• SettingupthePCRwillhelpimproveIndia’srankingsintheWorldBank’seaseofdoingbusinessindex.
PCR in other countries
• PCRinothercountriesnowincludeothertransactionaldatasuchaspaymentstoutilitieslikepowerandtelecomforretailconsumersandtradecreditdataforbusinesses.
• Regularityinmakingpaymentstoutilitiesandtradecreditorsprovidesanindicationofthecreditqualityofsuchcustomers.
Innovation in lending
• Accesstocreditinformation,includingdebtdetailsandrepaymenthistorywoulddriveinnovationinlending.
• Forexample,currentlymostbanksfocusonlargecompaniesforloansandconsequentlythemicro,smallandmediumenterprisesareleftwithlimitedoptionsforborrowing.
• Withsatisfactorypaymenthistoryandvalidateddebtdetailsmadeavailable,itwillincreasethecreditavailabilitytomicro,smallandmediumenterprisesalongwithdeepeningofthefinancialmarkets.Thiswillsupportthepolicyoffinancialinclusion.
Asian Clearing Union
• TheAsianClearingUnion(ACU),withheadquartersinTehran,Iran,wasestablishedonDecember9,1974attheinitiativeoftheUnitedNationsEconomicandSocialCommissionforAsiaandthePacific(ESCAP).
• TheprimaryobjectiveofACU,atthetimeofitsestablishment,wastosecureregionalco-operationasregardsthesettlementofeligiblemonetarytransactionsamongthemembersoftheUniontoprovideasystemforclearingpaymentsamongthe
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membercountriesonamultilateralbasis.
• InOctober2013,Iranunveiledaplansuggestingthatmembersoftheunion–Bangladesh,Bhutan,India,Maldives,Myanmar,Nepal,Pakistan,SriLankaandIran–employahome-grownsystemdevelopedbytheCentralBankofIrantogetaroundSWIFTcalledSEPAMinPersian.
Conclusion
To ensure a comprehensive database, the committee has alsoproposed linkageswithotherdefaulterdatabases like thewilfuldefaulter’s list and thatmaintainedbyExportCreditGuaranteeCorp. of India as well as with other information databases likegoods and services tax network data and utility and insurancepaymentsdata.However,theconcernslikedataprivacyneedtobetakencaredattherightlevel.Andtheregistryshouldcapturebothpositiveandnegativeinformationforallloansandborrowersareabletoaccesstheirownhistory.
Practice Question
I. WhatdoyoumeanbyPublicCreditRegistry?DoyouthinkthattheproposedPubliccreditregistrycanimprovethebadloanissuesatpublicsectorbanks?(200words)
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INDIA’S NUCLEAR TRIAD
Context
• Indiahasdeclaredthatitsnucleartriad,statedinitsnucleardoctrine,isoperationalafterindigenousballisticmissilenuclearsubmarineINSArihantrecentlyachievedamilestonebyconductingitsfirstdeterrencepatrol.
• Thesubmarinerecentlyreturnedfromitsfirstdeterrencepatrol,completingtheestablishmentofthecountry’ssurvivablenucleartriad.INSArihantisnowcapableofprowlingthedeepseascarryingballisticmissilesequippedwithnuclearwarheads.
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Significance
• ThisplacesIndiaintheleagueofthefewcountriesthatcandesign,constructandoperateshipsubmersibleballisticnuclear(SSBN).
• GivenIndia’sstatedpositionof‘No-First-Use’(NFU)inlaunchingnuclearweapons,theshipsubmersibleballisticnuclear(SSBN)isthemostdependableplatformforasecond-strike.
• Becausetheyarepoweredbynuclearreactors,thesesubmarinescanstayunderwaterindefinitelywithouttheadversarydetectingit.Theothertwoplatforms—land-basedandair-launchedarefareasiertodetect.
• ArihantwascommissionedintoserviceinAugust2016.Ithasadisplacementof6000tonnesandispoweredbyan83MWpressurisedlight-waterreactorwithenricheduranium.
India’s NFU
• In1998,IndiaconductednucleartestsunderPokhran-IIand
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in2003,itdeclareditsnucleardoctrinebasedoncredibleminimumdeterrenceandaNFUpolicywhilereservingtherightofmassiveretaliationifstruckwithnuclearweaponsfirst.
• Nofirstuse(NFU)referstoapledgeorapolicybyanuclearpowernottousenuclearweaponsasameansofwarfareunlessfirstattackedbyanadversaryusingnuclearweapons.Earlier,theconcepthadalsobeenappliedtochemicalandbiologicalwarfare.
• Indiafirstadopteda“Nofirstuse”policyafteritssecondnucleartests,Pokhran-II,in1998.InAugust1999,theIndiangovernmentreleasedadraftofthedoctrinewhichassertsthatnuclearweaponsaresolelyfordeterrenceandthatIndiawillpursueapolicyof“retaliationonly”.
• ThedocumentalsomaintainsthatIndia“willnotbethefirsttoinitiateanuclearfirststrike,butwillrespondwithpunitiveretaliationshoulddeterrencefail”andthatdecisionstoauthorisetheuseofnuclearweaponswouldbemadebythePrimeMinisterorhis‘designatedsuccessor(s)’.
• Needofthispolicy
• Adoptingano-firstusepolicyenablesNewDelhitokeepthenuclearthresholdhigh,especiallyasPakistantriestolowerthethresholdbydevelopingtacticalnuclearweapons,theHatf-9with60kmrange.
• ItmustalsobenotedthatNewDelhiisnotborderedbyjustonenuclearweaponstate.Chinaadoptsano-firstusepolicyand,inspiteofcallsforBeijingtoreviseitsno-firstusedoctrine,itisunlikelytodoso.Hence,ifNewDelhigaveupitsno-firstusedoctrine,itcouldgiveBeijingachancetoadoptafirststrikepolicyandshiftblameonIndia.
• Infact,India’sadoptionofafirststrikepolicywouldbeaneasyexcuseforBeijingtogiveupitsno-firstusedoctrineagainsttheUnitedStatesandRussiaaswell.
• Moreover,Indiahasalwayspromotedherselfasaresponsiblenuclearweaponstate.Hence,afirststrikepolicywouldseverelydamageIndia’sreputationasaresponsiblenuclear
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weaponstate.ThismeansthatwhileIndiawouldnotberesilienttoanynuclearattackbyitsadversaries,atthesametime,itwillnotactasavillainwhotriestobullyitsadversariesbythreateningtostrikefirst.
• Also,itisIndia’snofirstusedoctrinethathasenabledbothPakistanandIndiatokeeptheirnucleararsenalinade-matedpostureratherthanareadydeterrentposture.Thismeansnuclearwarheadsarenotmatedwiththedeliverysystems.
• ThisreducesthechancesofnuclearterrorisminPakistanandalsoreducesthelikelihoodofanaccidentallaunchofanuclearweapon.AfirststrikepolicybyIndiamaynothaveallowedPakistantokeeptheirnucleararsenalinade-matedposture.
• ThereisalsotheissueofballisticmissiledefensebeingdevelopedbyIndiawhichishighlydestabilizinginnatureandhence,NewDelhiwouldcontinuetoresorttousingitsno-firstusedoctrineinordertopreventinstabilityintheSouthAsianregion.Afirst-strikepolicy,coupledwithaballisticmissiledefensesystem,couldprovokePakistantolaunchanuclearpre-emptivestrikeagainstIndia.
• Byadoptingano-firstusedoctrine,NewDelhihasalsomadeitevidentthatnuclearweaponsareindeedtheweaponsoflastresort.AbandoningthisdoctrinewouldmakeitevidentthatIndiaconsiderstheoptionofusingnuclearweaponsintheinitialphasesoftheconflict.Infact,India’snuclearstrategyisdependentonpunitiveretaliation.ThisstrategyitselfactsasdeterrenceagainstPakistan.
Present development
• OnNov.5triumphantlyannouncedthatIndia’sfirstindigenousnuclear-poweredballisticmissile(SSBN)submarine,INSArihant,hassuccessfullycompleteditsfirstdeterrencepatrol.
• AdeterrentpatrolisonewhereanSSBNwithafullcomplementofnuclear-tippedmissilessailstowardsitsintendedareaofdeploymentwithinrangeofanadversary’stargets.
• Incaseofanattackbyanuclear-armedadversary,theSSBN
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canbeorderedtolaunchitsweaponsafterreceivingacodedsignalfromIndia’snuclearcommandpost.
• Thesubmarineisfullyoperationalnow,thecrewhasworkedandthemissilesareloaded.ItwillstayoncontinuousdeterrencepatrolsandwhenthesignalgoesoutfromNewDelhitoINSArihant,itshouldbeabletolaunchanuclearmissile.
• TheUnitedStates,Russia,theUnitedKingdom,FranceandChinaaretheonlycountriesthatcandelivernuclearwarheadsfromasubmarine.
• The6,000-tonArihant,whichmeansdestroyerofenemies,isarmedwith12B-05submarinelaunchedballisticmissiles(SLBMs)capableofdeliveringnuclearwarheadsupto750kmaway.
• Therange,however,isalimitationandIndianeedstodeploySLBMscapableofstrikingtargetsthousandsofkilometresaway.
• • Indiaalreadyhasthecapabilitytocarryoutnuclearstrikeswithfighterplanesandland-launchedmissiles.TheAgniseriesofballisticmissilesandwarplanessuchasSukhoi-30sandFrench-originMirage-2000scandelivernuclearwarheads.TheRafalefightersorderedfromFrancearealsonuclearcapable.
Significant of the development
• Incaseofanattackbyanuclear-armedadversary,theSSBNcanbeorderedtolaunchitsweaponsafterreceivingacodedsignalfromIndia’snuclearcommandpost.
• TheabilityoftheNuclearCommandAuthorityheadedbythePMtocommunicatewiththesubmarinethroughanExtremelyLowFrequency(ELF)communicationsystem.
• Deterrentpatrols,asthetermindicates,areexactlythat.Theyaremeanttodeterapotentialadversaryfromlaunchingafirststrikebyholdingoutwhatiscalledthethreatofassureddestruction.Onceasubmarinesailsoutintotheoceanandsailssubmerged,itisextremelydifficulttodetectandtrack
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whichmakesitthemostsurvivableplatformofthetriad.
• SailinganSSBNoutonadeterrencepatrolrequiresaveryhighlevelofconfidenceinthesubmarine’stechnicalcapabilitiesandcrewskills.ChinawasthelastentrantintothisclubandisthoughttohavedeployeditsJinclassSSBNsonadeterrencepatrolasrecentlyas2015.
• BothIsraelandNorthKoreaoperateconventionalsubmarinescapableofbeingfittedwithnuclear-tippedmissilesbutitisuncleariftheyhaveeverconductedpatrols.
• Indiaisscalingupthisproject.AsecondSSBN,INSArighat,waslaunchedattheShipBuildingCentre(SBC)inVisakhapatnamonNovember19,2017.
• TheArighatisonharbourtrialsandisexpectedtojointhenavyinafewyears.Twomoresubmarines,theS-4andtheS-4*arealsobeingassembledandarelikelytobelaunchedby2020and2022.
• Thelasttwosubmarinesareover1000tonsheavierthantheArihantandtheArighatandcancarryeightK-4missiles.
India’s triad is truly complete?
• CurrentlyonlytheUSandRussiaamongthenuclear5havetheresourcesandthepedigreetoclaimsuchacapability.
• EvenFranceandChinahavetrimmedtheirdeterrencesails.Paris,forinstance,maintainsonlyasea-basedandanair-bornedeterrentcapability.Theclassicaltriadisnotprovingtobeascost-effectiveasitwasonceperceived.
• Indiaislocatedinaverychallengingweaponsofmassdestruction(WMD)region,whatiseuphemisticallyreferredtoas“aroughneighbourhood”andthefactthatbothitsnuclearcapableneighbours(ChinaandPakistan)areinadeepandcovertWMDcooperationframeworkcompoundsthechallengeforDelhi.
• AddtothisthebeliefinNewDelhithatPakistanhasalsouseditsnuclearcapabilitytoshielditsterrorisminvestmentandthestrategicpicturebecomesevenmuddier.
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• ItmeritsrecallthatChina,missileonthisboatisconsideredtobeasea-basedvariantoftheDongfeng-4serieswitharangeupwardsof5,000km.Incontrast,theArihantisestimatedtohaveamissilewitharangeinhundredsofkms.
• However,theSSBNasaplatform,whichiswhatArihantisgenerically,isnotmeantforwarfightingbuttomaintainorimposepeaceinanuneasystrategicenvironment.
• Overthelast46years,Francehascarriedout500suchdeterrentpatrolsandmarkedthismilestoneonOctoberthisyear.HenceitwillbemuchcostincurringforIndia.
• IndiamaintainsnuclearwarfarepolicycanteredonaNoFirst-Use(NFU)and“credibleminimumdeterrence”(perhapsslowlyshiftingtoa“credibledeterrence”)doctrine,whichrequiresanassuredso-calledsecond-strikecapability.
• However,unliketheUnitedStates,Britain,andFrance,whichmaintaincontinuousSSBNpatrolpostures,Indiawilllikelyrelyonanoccasionalsea-baseddeterrent—atleastforthetimebeinggivenfinancialandtechnicalconstraints,butalsoduetoland-basednuclearassets,whichactasaneffectivedeterrent.
• Notenoughinformationhasbeenmadepublictoassesswithconfidencetheprecisenatureoftheallegeddeterrentpatrol.Regulardeterrentpatrolsareonlylikelytobeginwiththedeploymentofotherboatsoftheclass.
• ThesecondArihant-classSSBN,thefutureINSArighant,willhaveeightmissiletubes,twicethenumberinstalledontheArihant.Itwillalsohaveamorepowerfulreactorandaslightlybiggeroveralldisplacement.Itisalsoassumedtobequieterthanthefirst-of-classboomer.
India’s nuclear capabilities
• ThecountrytesteditsfirstnucleardeviceinMay1974,andremainsoutsideboththeTreatyontheNon-ProliferationofNuclearWeapons(NPT)andtheComprehensiveNuclearTestBanTreaty(CTBT).
• However,Indiahasafacility-specificsafeguardsagreementin
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placewiththeInternationalAtomicEnergyAgency(IAEA)andawaiverfromtheNuclearSuppliersGroup(NSG)allowingittoparticipateinglobalciviliannucleartechnologycommerce.
• AlthoughIndiahasalsostockpiledroughly2.4tonsofhighlyenricheduranium(HEU),someofthismaterialismostlyintendedforuseinnuclearsubmarinesandresearchreactors.
• TheplutoniumforIndia’snucleararsenalismostlikelyobtainedfromtworesearchreactors:the40MWtCIRUSandthe100MWtDhruva,whichbeganoperationsin1963and1988,respectively.
• Thefirstprototypefast-breederreactoratKudankulamdidnotmeetitsSeptember2015deadlinetostartcommercialoperationduetotechnologicalissues.
• Atthesametime,Indiacontinuedtosupporteffortsfornucleardisarmament.
• In1988,PrimeMinisterRajivGandhisubmittedanActionPlanforaNuclear-Weapons-FreeandNon-ViolentWorldOrdertotheUnitedNationsGeneralAssembly.AsnegotiationsontheCTBTrapidlyprogressedintheearly1990s,IndianelitescametoregardtheCTBTasaninstrumentofnon-proliferationthatsoughttofreezecountries’nuclearcapabilities.
• In1995theNarasimhaRaogovernmentconsideredanacceleratedprogramofnucleartests.However,India’stestpreparationsweredetectedbyU.S.intelligenceagencies,andtheresultantU.S.diplomaticpressureconvincedtheRaogovernmenttopostponethetests.
• PlansfortestingwererenewedwhenthegovernmentledbyAtalBihariin1998,authorizedtworoundsofnucleartestson11and13May1998,afterwhichitformallydeclaredIndiatobeanuclear-weaponstate.
• AlmostnooneoutsideofIndiaforesawthetestthatmarkedthearrivalofIndiaasanuclearweaponstate.
India’s nuclear efforts and its two adversaries
• India’s1998tests—combinedwithU.S.andinternational
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effortsto“normalize”Indiaasaresponsiblenuclear-armedstate—reinvigoratedtheChina-Pakistanaxis.
• China’snuclearcooperationwithPakistanpredatedthesubcontinent’sovertweaponizationin1998andincludedthetransferofweapons-gradeuraniumandmobileM-11missiles.
• Yet,India’semergenceasanuclear-armedstatedidnothelpitovercomeChina’spolicyofkeepingtheIndia-Pakistanrelationshipinastateof“managedmistrust.”
• ThispolicyismanifestedinChina’sintenttore-hyphenateIndiatoPakistanbycontinuingtotransfermilitarytechnologytoPakistanandlinkingIndia’sNuclearSuppliersGroup(NSG)membershiptoPakistan’s.
• InMarchofthisyear,ChinaadmittedithadexportedanadvancedtrackingsystemthatcouldfacilitatethedevelopmentoftheAbabeel,Pakistan’sfirstmultiplewarheadmissiles.
• ChinahasalsosoldseveralnuclearreactorstoPakistanandopposedIndia’smembershiptotheNSGunlessPakistanisgrantedsimultaneousaccesstothecartelandnuclearcommercewithitsmembers.
How secure is India now?
• ItwouldbetooharshtoconcludethatIndiamadeamistakeintestingnucleardevicesin1998.
• Chinahadbeenanuclear-armedstatesince1965andPakistan’sbombhadbeeninthebasementforadecade.
• EvenifNewDelhihadoptedagainstcrossingthethresholdofovertweaponization,BeijingandIslamabadwouldhavelikelysoughttoforestallIndia’sriseasamajorpowerandkeepitconfinedtotheSouthAsianneighbourhood.
• However,India’sthreatenvironmentisnobetterthanin1998and,insomecases,itssecurityisworse.
• ThePakistanArmycontinuestoabetcross-bordermilitancyagainstIndiaandlowerthenuclearthresholdtolimitIndia’s
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militaryoptions.
• ChinaappearsmoredeterminedthanevertopreventIndia’sriseasamajorpower,re-hyphenateIndiatoPakistan,andchallengeIndia’sinfluenceamongitsneighbours.
• ThelanguidpaceatwhichIndiahasdevelopedanddeployeditsarsenalindicatesitisnotinterestedinengagingChinaorPakistaninanuclearcompetition.Yet,IndianleadershavenotdoneenoughtoeithersurmountthesecuritychallengesposedbyitsadversariesorpositionIndiatorealizeitsfullpotentialinAsiaandbeyond.
• IndialagsbehindinChinainmostmeasuresof“usable”power—andnuclearweaponshavenotattenuatedthewideninggapineconomicvitality,diplomaticinfluence,andconventionalfirepowerbetweenthetwoAsiangiants.
India’s Military Doctrines
• ColdStartDoctrine
» TheSundarjiDoctrine(1981-2004)wasmadeupofsevendefensive“holdingcorps”oftheIndianArmyanddeployednearthePakistaniborder.Possessinglimitedoffensivepower,theholdingcorps’primaryresponsibilitywastocheckaPakistaniadvance.India’soffensivepotencywasderivedfromthe“strikecorps”,whichweremadeupofamechanisedinfantryandextensiveartillerysupport.
» ColdStartisamilitarydoctrinethatwasdevelopedbytheIndianArmedForcesforuseinapossiblewarwithPakistan.The‘ColdStart’doctrineoftheIndianArmedForcesenvisagesswiftdeploymentoftroopsonthewesternborderwithindays,ifasituationofafull-blownwararises.ThisdoctrineaimstoallowIndianforcestoconductsustainedattackswhilepreventinganuclearretaliationfromPakistan.TheoperationwouldbecarriedoutbyaunifiedbattlegroupinvolvingvariousbranchesofIndia’smilitary.Itcandeployafull-strengthinvasionforcewithinafewdaysnotice,unlikeseveralweeksof
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preparationthatwererequiredearlier.
» Inresponsetothis,Pakistandevelopedtacticalnuclearweapons.
• IAEA:atotalof26Indiannuclearfacilitieswillbeundertheinternationalnuclearenergywatchdog.
• IAEAsafeguardsagreement
• NucleardealsofIndiawithdifferentnations:Indiasignedcivilnuclearagreementwithabout14countries.
Practice Question
I. WhatyoumeanbyColdStartdoctrine?DoesIndiahavethecapabilitytoadoptorexecutethisdoctrine?Criticallyexamine?(200words)
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INDIA IRAN RELATIONS
Context
• TheUnitedStateshasexemptedIndiafromimpositionofcertainsanctionsforthedevelopmentofthestrategically-locatedChabaharportinIran,alongwiththeconstructionoftherailwaylineconnectingitwithAfghanistan.
• ThedecisionbytheTrumpadministrationisaseenasarecognitionbyWashingtonofIndia’sroleindevelopmentoftheportontheGulfofOman,whichisofimmensestrategicimportanceforthedevelopmentofwar-tornAfghanistan.
• ThesanctionscoverIran’sbankingandenergysectorsandreinstatepenaltiesforcountriesandcompaniesinEurope,AsiaandelsewherethatdonothaltIranianoilimports
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Fate of Chabahar port
• Iran’sChabaharportislocatedontheGulfofOmanandistheonlyoceanicportofthecountry.
• Theportgivesaccesstotheenergy-richPersianGulfnations’southerncoastandIndiacanbypassPakistanwiththeChabaharportbecomingfunctional.
• ChabaharportwillboostIndia’saccesstoIran,thekeygatewaytotheInternationalNorth-SouthTransportCorridorthathassea,railandroadroutesbetweenIndia,Russia,Iran,EuropeandCentralAsia.
• ChabaharportwillbebeneficialtoIndiaincounteringChinesepresenceintheArabianSeawhichChinaistryingtoensurebyhelpingPakistandeveloptheGwadarport.
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• WithChabaharportbeingdevelopedandoperatedbyIndia,IranalsobecomesamilitaryallytoIndia.
• TheimportcostofoiltoIndiawillalsoseeaconsiderabledecline.
• ChabaharportwillensureintheestablishmentofapoliticallysustainableconnectivitybetweenIndiaandAfghanistan.Thisiswill,inturn,leadtobettereconomictiesbetweenthetwocountries.
• Fromadiplomaticperspective,Chabaharportcouldbeusedasapointfromwherehumanitarianoperationscouldbecoordinated.
Oil waiver for India and others
• EightcountriesincludingIndiaaregettingconditionalwaiverfromtheUStobuyIranianoilafteritreimposedsanctionsonthePersianGulfnation.Thus,Indianoilimportershavesecuredtemporaryreprieve.
• Itisatemporaryallotmenttoahandfulofcountriesresponsibletospecificcircumstancesandtoensureawell-suppliedoilmarket.
• FindinganalternativesupplieratcompetitivetermsquicklyforIndiamaybetough.
• Pricesmaybeaffectedinthewakeofsanctions.
• WithIndia’sdomesticproductionunabletocatertothecountry’severincreasingdomesticdemand,thecountrywillcontinuetodependonimportsfortheforeseeablefuture.
• Indiahasbeentryingtodiversifyitssupplyportfolio,withfirmsstartingtosourceliquefiednaturalgasandoilfromtheUS.
• TheoptionsbeforeitincludeincreasingimportsfromsourcessuchastheUS,Iraq,SaudiArabia,Nigeria,Venezuela,andUAE.
• Indianrefineriesarecontinuouslyoperatinginlosses.TheproblemforIndianoilrefinersmaygetfurtherexacerbated
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giventheslideintherupeethathasmadeitAsia’sworstperformingcurrencyoftheyear.
• AnyrallyinglobalcrudeoilpriceswillaffectIndia’soilimportbillandtradedeficit.
• EverydollarincreaseinoilpriceshasthepotentialtopushuptheimportbillbyaroundRs10,700croreonanannualbasis.
• Indianbasketofcrudeoil:whichrepresentstheaverageofOman,DubaiandBrentcrude,fellto$71.65abarrelon2November,accordingtothePetroleumPlanningandAnalysisCell.
Indio-Iran relations history
• SincePrehistorictimes,therehavebeenculturesimilaritiesbetweenPersia&India.Pre-Independence,IndiaandIranwereneighbouringnations.
• IndiaandIranhadbeenneighbourstill1947.IndependentIndiaandIranestablisheddiplomaticrelationsin1950.MohammadMosaddegh(thenPrimeMinisterofIran1952–53)admiredMahatmaGandhi.Manyoftheirtacticswereprettymuchakin.
• FollowingtheoverthrowofMossadeghin1953,IranwasruledunderShahMohammadRezaPahlavi.
• DuringmuchoftheColdWarperiod,relationsbetweentheRepublicofIndiaandtheformerImperialStateofIransufferedduetodifferentpoliticalinterestsprimarilyduetonon-alignedtacticofIndiathatnurturedstrongmilitarylinkswiththeSovietUnionwhileIranenjoyedclosetieswiththeUnitedStates.
• Shah’sIranhadtheheavyinfluenceoftheWestanditbecameamemberofvariousWestern-sponsoredregionalorganizationsliketheBaghdadPact,whileIndiawasmoretowardstheSovietUnionandtheNAM.
• Throughoutthe80s,IranandIraqwereinastateofwarandIraqwasthenaclosefriendofIndia.
• IndianPMNarasimhaRaovisitedIranin1993andsincethen,
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relationshavebeenimproving.
• IranandIndiacloselycooperatedinsupportingtheNorthernAllianceinAfghanistanagainsttheTalibaninthe1990s.
• In2003,PresidentMohammadKhatamiofIranwastheChiefGuestforIndia’sRepublicDay.
• IranhasemergedasIndia’smostviabletransitoptionfortradewithCentralAsiaandRussia.India,RussiaandIransignedanagreementin2000forsendingIndianCargotoRussiaviaIranthrougha‘North-SouthCorridor’.
• Butin2006,IndiasupportedthetransferringofIran’sdossieronitsnuclearprogrammefromtheIAEAtoUNSecurityCouncil.ThiswasahugesetbacktoIndia-Iranrelations.
• Relationswerebackontrackin2008whenIranianPresidentMahmoudAhmadinejadcametoIndia,andIndiapromisedanindependentpolicytowardsIranandnotyieldtoUSpressure.
Iran is more than just an oil supplier to India
• IranensuresoverlandconnectivitybetweenEurasiaandIndiaanditisnotjustanenergysupplier.
• IranisalandpowerontheothersideofPakistanthatprovidesIndiawithanalternativeroutetoAfghanistan,astrategicnecessityforDelhi.
• Iranisageopoliticalentityinitsownright.
• IranhasborderswithalargenumberofcountriesthatIndiacouldnotaccessbecauseofthebarrierthatPakistanposedtoIndia’soverlandconnectivityplans.
• India’srelationshipwithIranhasbeenbuiltcarefullyandthoughtfullybyallpastgovernmentsasIranforIndiaisnotjustanenergysupplierfromthePersianGulfregion.
• India’sinfrastructure-buildingactivitiesinAfghanistanisdonewithsupportfromIran.
• IndiahasdisregardedpoliticalinclinationofthegovernmentinTehranwithaneyeontheoverallnecessityofthecountryfor
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India’sstrategicsecurity.
Conclusion:
Both India and Iran seem to have come to the conclusion thattherearealargenumberofareasinwhichtheirinterestscoincideandconverge.Theyalsorecognizethattheyhavedivergentviewson some issues. Theyhence appear to have taken thedecisionto collaborate in sphereswhere they agree and hold frank andcandiddiscussionsonsubjectswhere theyhaveadifferenceofviewswhilenotallowingtheseissuestoblockorvitiatebilateralties.Theseriousnessofthetwocountriestostrengthenbilateralengagementisevidentfromthedecisionto“furtherintensifyanddiversifytheexistinghigh-levelengagementthroughfrequentandwiderrangeofbilateralexchangesatalllevels.
Practice Question
I. GeostrategicrealitywillensureIran’scontinuedimportancetoIndia.Comment(200words)
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MSME: LOAN FOR MSME IN 59 MINUTES
Context
• TheIndiangovernmentannouncedthefulllaunchofanewportalthathelpsmicro,smallandmediumenterprisestoavailcreditwithinanhour.
• Smallbusinessescanusethe‘59-minute’portaltoavailloansofuptoRs1crore.
• Smallenterprisesregisteredunderthegoodsandservicestaxwillalsogeta2percenttaxrebateonincrementalloansofuptoRs1crore.
• TheportalissetupbytheissetupbytheSmallIndustriesDevelopmentBankofIndia(SIDBI).
• MSMEscanregisterandapplyforaloan.Theirapplicationgoestotwoorthreebankswiththeaimtogetthembestpossibleinterestratesfollowingwhichitreceivesanin-principleapproval.
• Mostofthepublicsectorbanksareonboardtheportal.
• ThegoodsandservicestaxcouncilhadalsosetupapanelofFinanceMinisterstolookintotheissuesthatthecountry’ssmallbusinesseswerefacing.
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Background information
• MSMEaccountsformorethan45%oftotalmanufacturingoutputofthecountry,contributesaround9%toGDPandaccountsformorethan40%oftotalexportsofthecountry.
• Therearetotalaroundmorethan40millionsuchenterprisesinIndia(whichis2ndlargestafterChina)itemploysover11CrorepeopleinIndia.
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Classifications of MSME
• DefinitionsofMicro,Small&MediumEnterprisesInaccordancewiththeprovisionofMicro,Small&MediumEnterprisesDevelopment(MSMED)Act,2006theMicro,SmallandMediumEnterprises(MSME)areclassifiedintwoClasses:
• ManufacturingEnterprises-heenterprisesengagedinthemanufactureorproductionofgoodspertainingtoanyindustryspecifiedinthefirstscheduletotheindustries(Developmentandregulation)Act,1951)oremployingplantandmachineryintheprocessofvalueadditiontothefinalproducthavingadistinctnameorcharacteroruse.TheManufacturingEnterpriseisdefinedintermsofinvestmentinPlant&Machinery.
• ServiceEnterprises:-Theenterprisesengagedinprovidingorrenderingofservicesandaredefinedintermsofinvestmentinequipment.
• Thelimitforinvestmentinplantandmachinery/equipmentformanufacturing/serviceenterprises
A. Manufacturing Enterprises
» MicroEnterprises:Lessthan25Lakhrupees.
» SmallEnterprises:Morethan25Lakhrupeesbutlessthan5Crorerupees.
» MediumEnterprises:Morethan5Crorerupeesbutlessthan10Crorerupees.
B. Service Enterprises
» MicroEnterprises:Lessthan10Lakhrupees.
» SmallEnterprises:Morethan10Lakhrupeesbutlessthan2Crorerupees.
» MediumEnterprises:Morethan2Crorerupeesbutlessthan5Crorerupees.
NEW DEFINITION FOR MSMEs
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• Thegovernmenthasgivenanewturnover-basedclassificationofMSMEsinFebruary2018.
• Asperthisnewclassification,theMSMEsarecategorizedintermofbusinessturnover.Thisisinplaceofthepreviousclassificationbasedoninvestmentmadeinplantandmachineriesiftheyareoperatinginthemanufacturingsectorandinvestmentinequipmentforservicesectorcompanies.
• Asperthenewclassification,thesameturnoverbasedcriteriahavebeenappliedforalltypeofMSMEsincludingthoseoperatingintheservicessector.
• ThoughtheprimaryresponsibilityofpromotionanddevelopmentofMSMEsisoftheStateGovernments,theCentrehaspassedanActin2006toempowerthesectorandalsohasformedaministry(MinistryofMSMEs).ItwastheMicro,SmallandMediumEnterprisesDevelopment(MSMED)Actwhichwasnotifiedin2006thatdefinedthethreetiersofmicro,smallandmediumenterprisesandsetinvestmentlimits.ThenewturnovercriteriawillbettersuitwiththeGSTNetwork(GSTN)andotherformatsofsegregatingtheMSMEs.
The new turnover based classification of MSMEs
TheMicro,SmallandMediumEnterprisesDevelopment(MSMED)Act,2006willaccordinglybeamendedtodefineunitsproducinggoodsandrenderingservicesintermsofannualturnoverasfollows:
• AmicroenterprisewillbedefinedasaunitwheretheannualturnoverdoesnotexceedRs5crores;
• AsmallenterprisewillbedefinedasaunitwheretheannualturnoverismorethanRs5crorebutdoesnotexceedRs75crore;
• AmediumenterprisewillbedefinedasaunitwheretheannualturnoverismorethanRs75crorerupeesbutdoesnotexceedRs250crore.
Additionally, the Central Governmentmay, by notification, varyturnoverlimits,whichshallnotexceedthricethelimitsspecifiedinSection7oftheMSMEDAct.
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Under the previous classification a separate methodology wasadoptedforservicesector.NowtheclassificationwasmadesimilartothegoodsMSMEsasthegeneralturnover-basedcriteriawasmadeapplicabletoservicesectoralso.
Acts related to MSME
• TheCoirIndustryAct,1953
• Micro,SmallandMediumEnterprisesDevelopment(MSMED)Act,2006.
• Khadi&VillageIndustriesCommissionAct,1956-(Amendment)Act,2006w.e.f.15may2006and17March2008(Acts)
Related organisations
• OfficeofDevelopmentCommissioner(MSME):DevelopmentCommissionerateimplementsthepoliciesandvariousprogrammes/schemesforprovidinginfrastructureandsupportservicestoMSMEs.
• Khadi&VillageIndustriesCommission(KVIC)establishedundertheKhadiandVillageIndustriesCommissionAct,1956(61of1956),isastatutoryorganizationundertheaegisoftheMinistryofMSME.
• TheCoirBoardisastatutorybodyestablishedundertheCoirIndustryAct,1953forpromotingtheoveralldevelopmentofthecoirindustryandimprovementofthelivingconditionsoftheworkersengagedinthistraditionalindustry.
• NationalSmallIndustriesCorporation(NSIC)isanISO9001-2008certifiedGovernmentofIndiaEnterpriseunderMinistryofMicro,SmallandMediumEnterprises(MSME).NSIChasbeenworkingtopromoteaidandfosterthegrowthofmicro,smallandmediumenterprisesinthecountry.
• NIMSMEwasoriginallysetupasCentralIndustrialExtensionTrainingInstitute(CIETI)inNewDelhiin1960underthethenMinistryofIndustryandCommerce,GovernmentofIndia.TheInstitutewasshiftedtoHyderabadin1962asaregistered
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societyinthenameofSmallIndustryExtensionTrainingInstitute(SIET).
• MahatmaGandhiInstituteofRuralIndustrialisation(MGIRI)TheexistingJamnalalBajajCentralResearchInstitute(JBCRI),WardhawasrevampedwiththehelpofIIT,DelhiasanationallevelinstituteundertheMinistryofMSMEinOctober2008calledMahatmaGandhiInstituteforRuralIndustrialization(MGIRI).
Recent government initiatives
• PublicProcurementPolicy2012:EachMinistry/PSUshallsetanannualgoalandprocureminimum20%fromMSMEwithin3years.
• InmanyFDIproposalssuchasFDIinRetail,thereisclausethat20-30%inputsshallbeprocuredonlyfromMSME.
• LabourReforms:IntroductionofShramSuvidhaPortaltocompliancewithlabourlaws,flexible&timeboundlabourinspectionschemeandUniqueLabouridentificationnumber(LIN)toeveryunit.
• MudraScheme:Thisisthefirstevercreditschemedesignedformicroentrepreneursorhouseholdenterprises.Lesserdocumentsformality,nocollateralandcheapinterestratearesomeofthemajorfeaturesofthisscheme.ConnectinglastmilefinancierwithMudrabankisanotherremarkablefeatureoftheschemetoprovidecreditfacilitytoeachhouseholdenterprise.
• UdyogAadhaarMemorandum(UAM):Thisisapathbreakingsteptopromoteease-of-doing-businessforMSMEsinIndiaastheUAMreplacesthefilingofmanualEntrepreneurs’Memorandum(EMpart-I&II)withonlinefacilityoffilingEMandeachMSMEtoinstantlygetauniqueUdyogAadhaarNumber(UAN).Theinformationsoughtisonself-certificationbasisandnosupportingdocumentsarerequiredatthetimeofonlinefilingofUAM.
• ASchemeforPromotionofInnovation,RuralIndustryandEntrepreneurship(ASPIRE).ASPIREhasbeenlaunched
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withanobjectivetosetupanetworkoftechnologycenters,incubationcenterstoaccelerateentrepreneurshipandalsotopromotestart-upsforinnovationandentrepreneurshipinruralandagriculturebasedindustrywithafundofRs210Cr.
• SchemeofFundforRegenerationofTraditionalIndustries(SFURTI):TheobjectivesofSFURTIistoorganizethetraditionalindustriesandartisansintoclusterstomakethemcompetitiveandprovidesupportfortheirlongtermsustainabilitybywayofenhancingthemarketabilityofproducts,improvingtheskillsofartisans,makingprovisionforcommonfacilitiesandstrengtheningtheclustergovernancesystems.
• StandUpIndia:Recentlygovernmentapproved“Stand-UpIndiaScheme”topromoteentrepreneurshipamongSC/STandWomenentrepreneurs.TheSchemeisintendedtofacilitateatleasttwosuchprojectsperbankbranch,onanaverageoneforeachcategoryofentrepreneur.Itisexpectedtobenefitatleast2.5Lakhborrowersintimelimitof36monthsfromthelaunchoftheScheme.
• CreditLinkedCapitalSubsidyScheme:ithasbeenimplementedbythegovernmentforup-gradationoftechnology.Underthis15%(subjecttomaximumofRs.15.00lakhs)upfrontsubsidyoncapitalinvestmentfortechnologyupgradationisprovidedtomicroandsmallenterprisesformodernizationoftheirproductionequipment(plantandmachinery).
Issues in MSME sector
• LackofFinance:Itisestimatedthatmorethan90%MSMEsdoesnothaveaccesstoinstitutionalfinanceanddependentonlocalfinancesuchasrelativesormoneylenderswhereinterestcostisgenerallyonhigherside.However,governmenthavestartedlotsofschemetoprovideinstitutionalfinancetoMSMEs.ButcorruptionandlongproceduresmakesitdifficultforMSME’stoavailthebenefitsoftheseschemes.
• LackofBasicInfrastructure:MSMEsaregrowingrapidlybutdoesnothaveaccesstobasicinfrastructuresuchaspower,
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water,roadorconnectivitytotowns,telecom,etc.FurthergovernmentsupportislimitedinprovidingbasicinfrastructurefacilitiestoMSMEsinallareasofthecountry.
• AccesstoMarket:Indigitalera,marketingplaysasignificantplacebutduetolackoffundsandprofessionalknowledge,MSMEsadoptpooradvertisementandsellingmethodologieswhichrestrictthereachoftheirproductsdespiteofgoodquality.FurtherthereispoorlinkagebetweenHeavyindustriesandMSMEstoselltheirproducts.
• AccesstoModernTechnology:TheownersofMSMEsarenotawareofadvancedtechnologiesofproduction.Theirmethodologyofproductionisoutdatedwhichcauselowqualityproductionathighercost.
• LabourLaws:Allthelawsrelatedtoallaspectsofmanufacturingandserviceconcernareverycomplexandcompliancewiththeselawsispracticallydifficult.Thevariousdecisionsoffactoriesaredependentonthefactorycommissionerandinspector.So,therearechancesofredtapeintheoperationofMSMEs.
• AccesstoRawmaterialandOtherInputs:MSMEsrequirerawmaterial,skilledworkforceandotherinputs,whicharenotavailableinthemarket.Duetounavailabilityoftheseessentials,itisverydifficulttoproducetheproductsataffordableprices.
• LackofSkilldevelopmentandtraining:MSME’sentrepreneursaregenerallynotwelleducatedandskilledintheirfieldareawhichrestrictedquantityandqualityofoutputofMSME’s.TheskilldevelopmentalschemesconductedbythegovernmentarenotsufficienttoaddresstheskillingissuesofMSME’s.
• Theexistingmechanismforaddressingrevival,rehabilitationandexitofsmallenterprisesisveryweakinthecountry.ThemostrecentDoingBusiness(DB)ReportranksIndia130outofthe189economiesforresolvinginsolvencies.Itnotesthatresolvinginsolvencytakes4.3yearsonaverageandcosts9.0%ofthedebtor’sestate.
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• Poortaxstructure,highlevelcompetitionwithMNC’sandlargeindustriesareothermajorproblemsfacedbyMSMEsector.
What need to be done
• Taxreforms:ThereisneedtorolloutGSTtosimplifytaxstructureandtoreducetaxspendingofMSME’s.FurtherthereisneedtoprovidetaxincentivestoMSMEsectorsuchasincreasetaxexemptionlimittoavoidtaxevasion.
• IndustrialTrainingInstitutesandmanagementschools:Thereisneedtoestablishnewindustrialschoolsorupgradepreviousonestoincludemodulesonmanagement,labourlaws,accounting,financialmarkets,andprocurementandmarketingskills.
• PromoteR&D:Tocomplywithrapidlygrowingandchangingworld,thereisneedtopromoteR&DinMSMEsectorsothatnewproductscanbedevelopedsuchasPhulkariofPunjab,bambooworksofAssam,etc.
• E-CommerceandMarketing:Ratherthandependingonprivatee-commercecompaniesonly,governmentshallendeavourtocreateadedicatede-commerceplatformformarketingofMSMEsector.
• Bankruptcycodetomakeinsolvencyprocedureisalsoneedofthehourtoreduceexittimeandcapitalofentrepreneurs.
Practice Question
MSME sector could act as the engine for economic growth byproducingemploymenttomillionsbutit ismarredwithmultipleissues.DoyouthinkthepresentlevelsofGovernmentinterventionsarehelpfulinmakingtheminrealisetheirobjectives?(250words)
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SPECIAL STATUS OF STATES
Context
• Odishatocontinuedemandforspecialcategorystatus.
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Special Status for states
• Theconceptofaspecialcategorystatewasfirstintroducedin1969whenthe5thFinanceCommissionsoughttoprovidecertaindisadvantagedstateswithpreferentialtreatmentintheformofcentralassistanceandtaxbreaks.
• InitiallythreestatesAssam,NagalandandJammu&Kashmirweregrantedspecialstatusbutsincetheneightmorehavebeenincluded(ArunachalPradesh,HimachalPradesh,Manipur,Meghalaya,Mizoram,Sikkim,TripuraandUttarakhand).
• Therationaleforspecialstatusisthatcertainstates,becauseofinherentfeatures,havealowresourcebaseandcannotmobilizeresourcesfordevelopment.
The criteria for granting special status are as follows
• Someofthefeaturesrequiredforspecialstatusare:
» hillyanddifficultterrain;
» lowpopulationdensityorsizeableshareoftribalpopulation;
» strategiclocationalongborderswithneighbouringcountries;
» economicandinfrastructuralbackwardness;
» Non-viablenatureofstatefinances.
• ThedecisiontograntspecialcategorystatuslieswiththeNationalDevelopmentCouncil,composedofthePrime
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Minster,UnionMinisters,ChiefMinistersandmembersofthePlanningCommission,whoguideandreviewtheworkofthePlanningCommission.
• TheSpecialCategoryStateshavesomedistinctcharacteristics.Theyhaveinternationalboundaries,hillyterrainsandhavedistinctlydifferentsocio-economicdevelopmentalparameters.
• TheseStateshavealsogeographicaldisadvantagesintheireffortforinfrastructuraldevelopment.PublicexpenditureplaysasignificantroleintheGrossStateDomesticProductofthestates.
• ThestatesintheNorth-Eastarealsolatestartersindevelopment.Inviewoftheaboveproblems,Centralgovernmentsanctions90percentintheformofgrantsinplanassistancetotheStatesinspecialcategory.
• Themostimportantprescriptionforspecialcategorystatesisinterestfreeloanwithrationalizationofpublicexpenditurebasedongrowthenhancingsectoralallocationofresources.
Advantages of getting special category status
• Preferentialtreatmentinfederalassistanceandtaxbreak.
• Significantexcisedutyconcessions.Thus,thesestatesattractlargenumberofindustrialunitstoestablishmanufacturingfacilitieswithintheirterritoryleadingtotheireconomyflourishing.
• Thespecialcategorystatesdonothaveahardbudgetconstraintasthecentraltransferishigh.
• Thesestatesavailthemselvesofthebenefitofdebtswappinganddebtreliefschemes(throughtheenactmentofFiscalResponsibilityandBudgetManagementAct)whichfacilitatereductionofaverageannualrateofinterest.
• Significant30%oftheCentre’sgrossbudgetgoestotheSpecialCategoryStates.
• InCentrallySponsoredSchemesandexternalaid,SpecialCategoryStatesgetitintheratioof90%grantsand
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10%loans.Fortherestofthestates,itisaspertherecommendationsofthe12thFinanceCommission.IncaseofCentrallySponsoredSchemes,only70%centralfundingisthereintheformofgrant.TherestoftheStatesreceiveexternalaidintheexactratio(ofgrantsandloans)inwhichitisreceivedbytheCentre.
Raghuram Committee recommendations
• RaghuramCommitteeproposedchangesinprovidingspecialstatus.Theproposedmethodologyallocatesfundsacrossstatesbasedonneedthusunderdevelopmentindexhasbeenconstructed.
• TheunderdevelopmentindextheCommitteeproposesincludesthefollowingtensub-components:(i)monthlypercapitaconsumptionexpenditure,(ii)education,(iii)health,(iv)householdamenities,(v)povertyrate,(vi)femaleliteracy,(vii)percentofSC-STpopulation,(viii)urbanizationrate,(viii)financialinclusion,and(x)connectivity.
• TheCommitteerecommendsthat“leastdeveloped”states,asidentifiedbytheindex,beeligibleforotherformsofcentralsupportthattheCentralGovernmentmaydeemnecessarytoenhancetheprocessofdevelopment.
• FollowingtheconstitutionoftheNITIAayog(afterthedissolutionofthePlanningCommission)andtherecommendationsoftheFourteenthFinanceCommission(FFC),CentralplanassistancetoSCSStateshasbeensubsumedinanincreaseddevolutionofthedivisiblepooltoallStates(from32%inthe13thFCrecommendationsto42%)anddonotanylongerappearinplanexpenditure.
14the finance commission recommendations on special status of states
• 14thFinanceCommissionheadedbyYVReddysubmitteditsreportin2014.
• ItredefinedthefinancialrelationshipbetweentheCentreandthestatesforthefive-yearperiodending2019-20.
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• TheCommissionnotablydidawaywiththe‘specialcategory’statusforstates,exceptfortheNorth-easternStatesand3hillstates(J&K,HimachalPradeshandUttarakhand).
• Instead,itsuggestedthattheresourcegapofeachstatebefilledthrough‘taxdevolution’.
• ItthusurgedtheCentretoincreaseitsshareoftaxrevenuestothestatesfrom32%to42%.
• Ifdevolutionalonecouldnotcovertherevenuegapforcertainstates,theCentrecouldprovidearevenuedeficitgrant.
• TheCommissionstatedthatAndhraPradeshwouldendupasarevenuedeficitstate.
• ItthusrecommendedthattheCentreprovidearevenuedeficitgrantfortheperiodofthe14thFinanceCommission.
Recent demands for special category status
• AndhraPradeshandTelanganademandthisstatussinceitsinception.
• Orissahasbeenaskingitsince1968.
Conclusion
The State governments shouldmove forward by implementingwider reforms and more equitable investment throughout thestates. The 14th Finance Commission has already blunted thebenefitoftheSCStag.Competitivefederalismwillbeanon-starterifstatesdon’tweanthemselvesoffcentrallargesse.
Practice Question
I. DemandforSpecialcategorystatusisagainsttheco-operativeandcompetitivefederalism.Discuss(250words)
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BID TO REVIVE INSURGENCY IN PUNJAB
Context
• Attemptsarebeingmadethrough“externallinkages”to“reviveinsurgency”inPunjab,andifearlyactionisnottaken,itmaybetoolate,ArmychiefGen.BipinRawat.
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History of Insurgency
• TheinsurgencyinPunjaboriginatedinthelate1970s,wasathreattotheunityandintegrityofIndiaduetothemilitantSikhethno-nationalismknownasKhalistanmovement.
• Inthe1980sthemovementhaddevelopedintoasecessionistmovementundertheleadershipofJarnailSinghBhindranwale.
• PakistanistrategiststhenbegansupportingthemilitantdimensionoftheKhalistanmovement
• In1972Punjabstateelections,CongresswonandAkaliDalwasdefeated.In1973AkaliDalputforwardtheAnandpurSahibResolutiontodemandmoreautonomytoPunjab.
• BhindranwalethenjoinedtheAkaliDaltolaunchtheDharamYudhMorchain1982,toimplementAnandpurSahibresolution.
• Bindranwalealsoincreasedthelevelofrhetoricontheperceived“assault”onSikhvaluesfromtheHinducommunity.
• In1983,toescapearrest,healongwithhismilitantcadreoccupiedandfortifiedtheSikhshrineAkalTakht.
• HemadetheSikhreligiousbuildinghisheadquartersandledtheterroristcampaigninPunjab.
• On1JuneOperationBlueStarwaslaunchedtoremovehimandthearmedmilitantsfromtheGoldenTemplecomplex.On6June,Bhindranwalediedintheoperation.
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• Fourmonthsaftertheoperation,on31October1984,IndiraGandhiwasassassinatedinvengeancebyhertwoSikhbodyguards,SatwantSinghandBeantSingh.
• TheextremistviolencehadstartedwithtargetingoftheNirankaris,followedbyattackonthegovernmentmachineryandtheHindus.
Aftermath of it Insurgency
• Thesituationinthestatedidnotreallyimprove.
• Punjabaccord,alsoknownastheRajiv-LongowalAccord,isanaccordsignedbyRajivGandhiandHarcharanSinghLongowalon24July1985.ThegovernmentacceptedthedemandsofAkaliDalwhointurnagreedtowithdrawtheiragitation.
• Provisionsincludescompensationtovictims,reservationsinarmyrecruitments,rehabilitation,enquiryinto1984killings,AllIndiaGurudwaraact,promotionofPunjabietc.
• ThatperiodcoincidedwithpoliticalinstabilityattheverytopinNewDelhiwheretheRajivGandhigovernmentgotembroiledintheBoforscaseandlostthe1989GeneralElections.
• ThesucceedingVPSinghgovernmentwasunstable,aswasthatofChandrashekhar’s.
• ThecountrywaswrackedbytheMandalandMandiragitationsandcametothebrinkofeconomiccollapse.
• Thecountry’sarmywasinvolvedintheSriLankaoperations,besidestryingtocopewiththechallengefromPakistanandtheULFAintheNorth-east.
Khalistan Liberation Force (KLF)
• TheKhalistanLiberationForce,whichHarminderSinghMintoocurrentlyhead,wasonesuchSikhmilitantgroup.
• Itwasfoundedin1986byAroorSinghandSukhwinderSinghBabbar.In1995,theKLFwaslistedasoneamongfourmajormilitantgroupsintheKhalistanmovement.
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• Overtheyearstheyhavebeeninvolvedinanumberofterroristactivitiesandassassinations,particularlyinPunjab.
Recent developments
• Pro-KhalistanrallyorganisedrecentlyinLondonfor‘Referendum2020.’HundredsofpeoplehadturnedoutatTrafalgarSquareinLondononAugust12insupportofapro-KhalistanrallyaswellastocountertheeventwithanIndependenceDaycelebration.
• CanadianPMvisitandthewelcome“indicating”India’sdispleasureoverMrTrudeauattendinganeventorganisedbySikhsinTorontolastMaythatfeaturedpostersandflagsdemandingtheSikhhomelandofKhalistan.
Way forward
• Insurgencycouldnotbedealtwiththemilitaryforcealone.Anapproachinwhichallagencies:thegovernment,theciviladministration,theArmyandthepoliceworkinginanintegratedmannerisneeded.
• ProgrammeslikelayingthefoundationstoneoftheDeraBabaNanak-KartarpurSahibCorridor(uptotheInternationalBorder)ataneventatMannvillageofGurdaspurdistrictofPunjabbuildstrustandconfidenceamongtheSikhcommunity.
• TheantiSikhriotvictimsshouldbeprovidedjusticeasearlyaspossible.
Conclusion
TherecentincidentstoreviveinsurgencyinPunjabhaveadirectimplicationover the internalsecurityof thecountry.TherehavebeenconsistenteffortsbytheISItorevivetheinsurgencytopropelterrorinthecountry.Asasecessionistmovementwithitsnature,KalisthanMovementhavetobecheckedasearlypossible.
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TRAGIC ENCOUNTER OF AVNI
Context
• TigressAvnishotdeadinlatenightencounternearMumbai
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Why are tigers important
• Tigersarean“umbrellaspecies”–meaningtheirconservationalsoconservesmanyotherspeciesinthesamearea.
• Theyhavegreatculturalandhistoricalsignificance.
• Theyarealsocrucialfortheecosystemsinwhichtheylive.Astoppredatorsofthefoodchain,tigerskeeppopulationsofpreyspeciesincheck,whichinturnmaintainsthebalancebetweenherbivoresandthevegetationuponwhichtheyfeed.
The five big cats in India
• Theterm“bigcat”istypicallyusedtorefertoanyofthefivelivingmembersofthegenusPanthera,namelytiger,lion,jaguar,leopardandsnowleopard.Exceptthesnowleopard,thesespeciesareabletoroar.
• AmoreliberalandexpansivedefinitionofthetermincludesspeciesoutsideofPantheraincludingthecougar,cloudedleopard,Sundacloudedleopardandcheetah,althoughtheseaddedspeciesalsodonotroar.
• IndianleopardisoneofthebigcatsoccurringontheIndiansubcontinent,apartfromtheAsiaticlion,Bengaltiger,snowleopardandcloudedleopard.
• Lionandtiger:IUCNstatus-Endangered.
• Indianleopard,SnowleopardandCloudedleopard-Vulnerable.
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National Tiger Conservation Authority
• ItisastatutorybodyundertheMinistryofEnvironment,ForestsandClimateChangeconstitutedunderenablingprovisionsoftheWildlife(Protection)Act,1972,asamendedin2006,forstrengtheningtigerconservation,asperpowersandfunctionsassignedtoitunderthesaidAct.
• TheNationalTigerConservationAuthorityissetupundertheChairmanshipoftheMinisterforEnvironmentandForests.
• TheAuthoritywillhaveeightexpertsorprofessionalshavingqualificationsandexperienceinwildlifeconservationandwelfareofpeopleincludingtribals,apartfromthreeMembersofParliamentofwhomtwowillbeelectedbytheHouseofthePeopleandonebytheCouncilofStates.
• TheInspectorGeneralofForests,inchargeofprojectTiger,willbeex-officioMemberSecretary.
Project tiger
• AimsatconservingIndia’snationalanimali.e.Tiger.
• Launchedin1973
• Currentlythereare47tigerreserves
• Thetigerreservesareconstitutedonacore/bufferstrategy.
» Thecoreareashavethelegalstatusofanationalparkorasanctuary,whereasthebufferorperipheralareasareamixofforestandnon-forestland,managedasamultipleusearea.
» TheProjectTigeraimstofosteranexclusivetigeragendainthecoreareasoftigerreserves,withaninclusivepeopleorientedagendainthebuffer.
• ItisaCentrallySponsoredSchemeoftheMinistryofEnvironment,ForestsandClimateChangeprovidingcentralassistancetothetigerStatesfortigerconservationindesignatedtigerreserves.
• TheNationalTigerConservationAuthority(NTCA)isa
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statutorybodyoftheMinistry,withanoverarchingsupervisory/coordinationrole,performingfunctionsasprovidedintheWildlife(Protection)Act,1972.
• Wildtigersarefoundin18StatesinIndia
• TheAllIndiatigerestimationiscarriedoutonceineveryfouryears.
Recent tiger reserves
• Sofar50tigerreserveshavebeenconstituted.
• LatestonesareOrang(2016)inAssamandKamlang(2016)inArunachalPradesh.
International efforts to tiger protection
• TheInternationalTigerDay(alsoknownasGlobalTigerDay)iscelebratedeveryyearon29Julytoraiseawarenessfortigerconservation.
• TheInternationalTigerDaywasfoundedin2010attheSt.PetersburgTigerSummit.ThesummithadissuedSt.PetersburgDeclarationonTigerConservationwithanaimtodoublethebigcatpopulationby2022.
• Tx2:Tigerrangegovernmentscametogetherforthefirsttimeanddecidedthatbusiness-as-usualapproacheswerenotworking.All13tigerrangegovernmentscommittedtothemostambitiousconservationgoalsetforasinglespecies–todoublethenumberofwildtigersby2022,thenextChineseYearoftheTiger.
• Therearecurrently13tigerrangecountries;Bangladesh,Bhutan,Cambodia,China,India,Indonesia,LaoPDR,Malaysia,Myanmar,Nepal,Russia,ThailandandVietNam.
• Despiteconservationeffortssincethe1970s,wildtigerpopulationsdidnotstopdeclining.
• Worldtigerpopulationisnowestimatedtobearound3900.
• TacklingtheillegalwildlifetradethroughourpartnershipwithTRAFFIC.
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Challenges in tiger conservation
• protectionagainstpoaching,
• fragmentationofhabitat,
• securinginviolatespacefortigertofacilitateitssocialdynamics,
• addressingtiger-humaninterface,
• restorationofcorridorsandelicitingpublicsupportoflocalpeoplebyprovidingecologicallysustainableoptions.
Way forward
• Tigersarecatsandthereforebreedeasily.Givenadequatespace,preybaseandprotection,thewildtigerpopulationcanincrease
• Globalpoachinglevelshavereachedcriticallevels.Organisedcriminalgangsareincreasinglyinvolvedintheillegalwildlifetradedrivenbyademandfortigerparts.Tigergovernmentsmustcombatpoachingiftigersaretohaveafuture.
• 6,000+wildtigersistheglobalgoalsetattheTigerSummitandthegoalWWFisdedicatedto.
• Drivingpoliticalmomentumtoensuretigersremainatoppriorityforworldleaders.
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INTERMEDIATE-RANGE NUCLEAR FORCES TREATY
Context
• U.S.PresidentDonaldTrumpdeclaredthattheU.S.isquittingtheIntermediate-RangeNuclearForces(INF)Treaty,abilateralagreementwithRussiasignedin1987.
• ThedecisionwasnotunexpectedsincetheU.S.haslongmaintainedthatRussiahasbeenviolatingthetreatyandMr.Trumphasbeencriticalofarmscontrolagreementsbecause,accordingtohim,othercountriescheat,puttingtheU.S.atadisadvantage.
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Recent developments
• RussiahasraisedthepossibilityofwithdrawingfromtheINFTreaty.Moscowcontendsthatthetreatyunfairlypreventsitfrompossessingweaponsthatitsneighbours,suchasChina,whoaredevelopingandfielding.
• RussiaalsohassuggestedthattheproposedU.S.deploymentofstrategicanti-ballisticmissilesystemsinEuropemighttriggeraRussianwithdrawalfromtheaccord,presumablysoMoscowcandeploymissilestargetinganyfutureU.S.anti-missilesites.
• Still,theUnitedStatesandRussiaissuedanOctober25,2007,statementattheUnitedNationsGeneralAssemblyreaffirmingtheir“support”forthetreatyandcallingonallotherstatestojointheminrenouncingthemissilesbannedbythetreaty.
Background of the treaty
• TheINFtreatyhasitsoriginsintheEuromissilecrisisofthelate1970sandearly1980s.TheSovietUnion’sdeploymentoftheSS-20,anadvancedandaccuratemissilethatcouldstrike
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mostofEuropefromdeepwithinRussiaalarmedEurope.
• Americahadshort-rangemissilesinEurope,whichcouldnotreachSovietterritory,andlong-rangeonesathomeandaboardsubmarines,butnothinginthismiddlecategory;iftheSovietsattackedEuropewiththeSS-20,Americawouldbeforcedtoescalatetoitsbiggestweapons.
• Europeanalliesfrettedthatitwouldnotdoso.Toassuagetheseconcerns,andtoforcetheSovietUniontochangecourse,AmericadeployedthePershingIIballisticmissileandanewground-launchedcruisemissileintoEurope.
• That,inturn,worriedtheSovietUnion.ThesecouldreachMoscowinundertenminutes,potentiallyforcingleadersintoapanickyresponse.
• Anti-nuclearprotestseruptedacrossEuropeasthenewmissilesrolledin.TheINFtreatycutthroughthisknot.
• ItprohibitednotonlytheoffendingSovietandAmericanmissilesbutalsotheflight-testing,developmentanddeploymentofallground-basedmissileswithrangesbetween300and3,300miles.Almost3,000existingweaponsweredestroyed,withtheSovietUniongettingridoftwiceasmany.
Intermediate-Range Nuclear Forces Treaty
• TheIntermediate-RangeNuclearForcesTreaty(INFTreaty,formallyTreatyBetweentheUnitedStatesofAmericaandtheUnionofSovietSocialistRepublicsontheEliminationofTheirIntermediate-RangeandShorter-RangeMissiles)isa1987armscontrolagreementbetweentheUnitedStatesandtheSovietUnion.
• UndertheINFTreaty,theU.S.andtheU.S.S.R.agreedtoeliminatewithinthreeyearsallground-launched-missilesof500-5,500kmrangeandnottodevelop,produceordeploytheseinfuture.
• TheU.S.destroyed846PershingIIsandGroundLaunchedCruiseMissiles(GLCMs)andtheU.S.S.R.,1,846missiles(SS-4s,SS-5sandSS-20s),alongwithitssupportfacilities.
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Importance of the Intermediate Nuclear Forces (INF) Treaty in U.S.-Russia relations
• UndertheTreaty,thetwopartiesagreedthatawholeimportantclassofnuclearweaponswouldberemovedfromEurope,andonlytacticalnuclearweapons(TNW)orshort-rangemissilesmostlydeployedontheterritoryofGermanywouldremain.
• TheINFTreatyforyearsservedtomitigatefearsofbothpartiesinrelationtopossibilityofmilitaryescalation,operationalmiscalculation,andhelpingtoshiftthelogicofMAD[mutuallyassureddestruction]tothehigher“moresensitive”politicallevel.
Adverse consequence of the present decision by Mr. Trump
• Mr.Trump’sdecisionhasgenerateddismayandconcernthatthiswilltriggeranewnucleararmsraceinEuropeandelsewhere.
• WhatitignoresisthattheINFTreatyreflectedthepoliticalrealityoftheColdWarofabi-polarworldwithtwonuclearsuperpowers,nolongerconsistentwithtoday’smulti-polarnuclearworld.
• Thegreaterchallengetodayistounderstandthatexistingnucleararmscontrolinstrumentscanonlybepreservediftheseevolvetotakenewrealitiesintoaccount.
What is the impact of U.S. withdrawal from the INF Treaty on China?
• Intermediate-rangemissilesystemsandcruisemissileswouldconsiderablyenrichU.S.capabilitiesinapotentialclashoverTaiwanorothercontentiousstrategicissue.
• AsthePLAofChinahasavarietyofcruisemissilesthatcanbelaunchedfromland,air,sea,andsub-surfaceplatforms,returningtointermediate-rangesystemswouldequipAmericanforceswiththecapabilitytostriketargetsthatarehighlydifficulttopenetrateforconventionalweaponsatpresent.
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• Meanwhile,vectoralenhancementofpoliticalrelationswithstatesallovertheworld,particularlythosethatareeconomicallyandpoliticallyaffiliatedtoChina,withpossibleshowsofeconomicmightanddeeperengagementonthefieldofsecurity.
• AllthiswillserveasacatalystofeconomicallegianceandaprobeofAmerica’ssecuritycreed,especiallyintheregionofthePacificandAsia.
• Nevertheless,joiningthearmsraceinAsiamayleadChinaintoatrapof“competitivestrategy.”
Foreign and security policy consequences for U.S. nuclear deterrence in the absence of the INF treaty
• LeavingtheINFTreatywouldallowtheU.S.tobalancethemilitarytechnologygapwiththeseassets,whichhasgrownsince1980,especiallybetweenU.S.andChina.
• InharmonywiththeLimitedTestBanTreatyofthe1960s,SALT[StrategicArmsLimitationTreaty]andSTART[StrategicArmsReductionTreaty],theINFhashadacodifyingeffectonthetwosuperpowers’strategicrelations.
• Washington’sleavingtheABM[Anti-BallisticMissile]andINFTreatycreatesaformalagreementtoverticalproliferationofWMDandgiveshigherstatustotheconceptofpowerininternationalpolitics.
Impact of U.S. withdrawal from the INF Treaty on China
• Intermediate-rangemissilesystemsandcruisemissileswouldconsiderablyenrichU.S.capabilitiesinapotentialclashoverTaiwanorothercontentiousstrategicissue.
• AnyadditionalU.S.conventionalmilitarysuperioritygivesChinaconsiderableincentivetoincreaserelianceonanescalatoryandpossiblydeterrencestrategy
• FollowingWashington’sdecisionontheINF,wemayexpectanevenmoremuscularstandfromChinaconcerningarticulationandprotectionofthevitalinterestsofBeijing.
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• Vectoralenhancementofpoliticalrelationswithstatesallovertheworld,particularlythosethatareeconomicallyandpoliticallyaffiliatedtoChina,withpossibleshowsofeconomicmightanddeeperengagementonthefieldofsecurity.
• JoiningthearmsraceinAsiamayleadChinaintoatrapof“competitivestrategy.
Conclusion
• Intoday’sreturnofmajorpowerrivalry,itisnolongerabi-polarworld,andnucleararmscontrolisnolongergovernedbyasinglebinaryequation.
• Therearemultiplenuclearequations—U.S.-Russia,U.S.-China,U.S.-NorthKorea,India-Pakistan,India-China,butnoneisstandalone.
• Therefore,neithernuclearstabilitynorstrategicstabilityintoday’sworldcanbeensuredbytheU.S.andRussiaaloneandthisrequiresustothinkafresh.
• Themostimportantachievementofnucleararmscontrolisthatthetabooagainstuseofnuclearweaponshasheldsince1945.
• Preservingthetabooiscriticalbutthisneedsrealisationthatexistingnucleararmscontrolhastobebroughtintolinewithtoday’spoliticalrealities
Practice Question
1. WhatyoumeanbyIntermediate-RangeNuclearForces(INF)Treaty?DoyouthinkthatthepresentunilateralcancellationofitbyUScouldhaveapossibleimplicationonthepeacefulenvironmentinAsia?(200words)
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COOPERATIVE FEDERALISM
Context
• Indianmodeloffederalismiscalledquasi-federalsystemasitcontainsmajorfeaturesofbothafederationandunion.
• Federalismisasystemofgovernmentinwhichpowerisdividedbetweenacentralauthorityandconstituentpoliticalunits.
• TheConstitutionofIndiaestablishesafederalstructuretotheIndiangovernment,declaringittobea“UnionofStates”.
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Evolution of cooperative federal structure in India from a centralised administration
• In1974,whentheSupremeCourtcommentedontheConstitutionenvisagingacooperativefederalstructure,federalismhascomealongwayinIndia.
• InrelationtotheimpositionofPresident’sruleunderArticle356oftheConstitution,federalismisfarmoremature.
• Between1947and1977,therewere44instanceswhenthepowertoimposePresident’srulewasexercised.
• Between1977and1996,thepowerwasexercisedalmost59times.PrimeMinisterIndiraGandhi’scabinetresortedtothepoweranestimated50timesinher14years.
• From1991till2016,therehavebeen32instancesoftheexerciseofthispowercomparedto92instancesintheprecedingperiod.
• InS.R.Bommaiv.UnionofIndia(1994),thelimitationlaiddownbytheSupremeCourtmighthaveplacedgentlebreaksonexerciseofthispower(President’sRule),buttheCentre
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continuestowieldsuperiorlegislativepowers,includingresiduarypowersandlegislativeprecedence.
Although cooperative federalism has been Improved, Instances of contentious terrain
• TaxationpowersarecontentiousissueandtheCentralgovernmenthaswonmostofthedisputespurelyduetoexpressprovisionsintheConstitution.
• IntheGoodsandServicesTax(GST)scenario,Stateshaveforegonesometaxationpowers(octroi,entrytax,luxuryandentertainmenttaxes,etc.)buthavepowerstolevytaxesthroughpanchayatsandmunicipalities.
• SuchpowerscanresultinananomaloussituationofatransactionbeingtaxedunderGSTlawsandalocallaw,andthisisyettobetestedincourt.
• AftertheGSTamendmentstotheConstitution,Stateshavepowertolevytaxonsaleofpetrol,diesel,etc.andthesewouldberevenuesoftherespectiveStates.However,theGSTCouncilisyettorecommendinclusionoftheseitemsunderGST.
• ThesouthernStateshavebeenvocalaboutthefalsepositivesandnegativesfromtaxsharingandthismechanismislargelysubjecttotherecommendationsoftheFinanceCommission(FC)andactionbyParliament.
• StateleviesandStateGSTformpartofaState’srevenue.UnderArticle269A(1)theGSTCouncilandnottheFChasthepowerstomakerecommendationsinrelationtosharingoftaxesfrominter-Statetrade.
Anomalies in the interpretation of the constitution with respect to the taxation laws
• ARTICLE269A(1):UnderArticle269A(1),theGSTCouncilandnottheFinanceCommission,hasthepowerstomakerecommendationsinrelationtosharingoftaxesfrominter-Statetrade.Thisisimportant,sinceStateshaveavoteintheGSTCouncil.
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• ARTICLE270(1)(A)&270(2):TheyprovidethattaxesleviedundertheGSTlawswillbesharedinthemannerprescribedinArticle270(2),whichtakesustotheFinanceCommissionandnottheGSTCouncil.
• ThepossibleanomalybetweenrolesandpowersoftheFinanceCommissionandtheGSTCouncilhasnotbeentested,butitmaymakesharingoftheserevenuessubjectmatteroftheFinanceCommissionandParliamentratherthantheGSTCouncil,whereStateshavemorepowers.
• RecommendationsoftheFinanceCommissionareplacedbeforeParliamentandStateshavenoroleinthedebate.
• ThereisalsonoprovisionforanaggrievedStatetochallengethereportofFinanceCommissiononcertaingroundsorseekmandatoryenforcementofitsrecommendations.
• IfaStateisaggrievedbytherecommendationsitself,anaggrievedStatewouldhavetolitigateintheSupremeCourtasitappearsthattheGSTCouncilisyettoestablishamechanismforresolvingdifferencesintermsofArticle279A(11).
Conclusion
• Tobringcompetition,thecentreshouldcooperatewiththestatesbyprovidingnecessaryautonomyintheirpolicymakingandallocatingthemtherequiredfundstospendbasedontheirownpriorities.
• Cooperativefederalismandcompetitivefederalismarenotmutuallyexclusiveinsteadtheybotharetwosidesofthesamecoin.Bothshouldbeequallypresentforthedevelopmentofanationasawhole.
• Thecooperationformsthegroundbaseonwhichcompetitioncanbegin.Therehastobeabalancebetweencooperativeandcompetitivefederalism.
• Statesdon’tmerelyseekparitywitheachother,historicallyStateshavealsosoughtparitywiththeCentreassuggestedandrecommendedinSarkariaandPunchhiCommissions.
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• Inaneraofcoalitionpolitics,GSTcouncilanditsmechanismtosolvethedisputestoarisewillbeatruetestofcooperativefederalism.
Practice Question
1. Whatyoumeanbyco-operativefederalisminIndiancontext?HowfardoyouthinktheIndianconstitutionsupportsco-operativegovernanceamongstates?(250words)
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JUDICIAL ACTIVISM: JUDGES LEGISLATE
Context
• Throughfreeelections,citizensofademocracyconferpowersupontheirleadersthataredefinedbylaw.
• Inaconstitutionaldemocracy,powerisdividedsothatthelegislaturemakesthelaws,theexecutiveauthorityenforcesandcarriesthemout,andthejudiciaryoperatesindependently.
• Noonebranchcancontrolallpowerinademocraticsystem.ThisisreferredtoastheSeparationofPowers.
• Inmanyrecentjudgments,theSupremeCourthasbecomehyper-activistinmakinglaws.
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Supreme Court duty is not to Legislate Laws
• Makinglawsisthefunctionofthelegislature.
• AsobservedinUnionofIndiav.DeokiNandanAggarwal(1991),“Thepowertolegislatehasnotbeenconferredonthecourts.”
• InSureshSethv.Commissioner,IndoreMunicipalCorporation(2005),thecourtobserved:“UnderourConstitutionalscheme,ParliamentandLegislativeAssembliesexercisesovereignpowertoenactlaws.”
• InRamJawayav.TheStateofPunjab(1955),thecourtobserved:“OurConstitutiondoesnotcontemplateassumption,byoneorganorpartofthestate,offunctionsthatessentiallybelongtoanother.”
• ThisimpliesthatthereshouldbeabroadseparationofpowersintheConstitutionamongthethreeorgansofthe
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state,andthatoneorganshouldnotencroachintothedomainofanother.Ifthishappens,thedelicatebalanceintheConstitutionwillbeupsetandtherewillbechaos.
Importance of Judicial Branch
• Independentandprofessionaljudgesarethefoundationofafair,impartial,andconstitutionallyguaranteedsystemofcourtsoflawknownasthejudiciary.
• Thisindependencedoesnotimplyjudgescanmakedecisionsbasedonpersonalpreferencesbutratherthattheyarefreetomakelawfuldecisionsevenifthosedecisionscontradictthegovernmentorpowerfulpartiesinvolvedinacase.
• Article50oftheIndianConstitution:Separationofjudiciaryfromtheexecutive.ThestateshalltakestepstoseparatethejudiciaryfromtheexecutiveinthepublicservicesoftheState.
There are three roles for the judicial arm of Government
• Reviewtheconstitutionalityofgovernmentactionandlegislation.
• Interpretlegislationandresultingaction.
• AdjudicateotherdisputesnotnecessarilyinvolvingGovernmentactionorlegislation.
• Indemocracies,independencefrompoliticalpressuresofelectedofficialsandlegislaturesguaranteestheimpartialityofjudges.
• Judicialrulingsshouldbeimpartial,basedonthefactsofacase,individualmeritsandlegalarguments,andrelevantlaws,withoutanyrestrictionsorimproperinfluencebyinterestedparties.Theseprinciplesensureequallegalprotectionforall.
Is judicial discipline being observed?
• First,inArunGopalv.UnionofIndia(2017),theSupremeCourtfixedtimingsforburstingDiwalifireworksandprohibitedtheuseofnon-greenfireworks,althoughtherearenolawstothateffect.
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• Second,inM.C.Mehtav.UnionofIndia(2018),thecourtannulledthestatutoryRule115(21)oftheCentralMotorVehicleRules,1989,whenitdirectedthatnoBS-4vehicleshouldbesoldafterMarch30,2020,andthatonlyBS-6vehiclescanbesoldafterthatdate.
• Third,inSubhashKashinathMahajanv.StateofMaharashtra(2018),thecourtamendedtheScheduledCastesandtheScheduledTribes(PreventionofAtrocities)Act,1989,byannullingSection18whichsaidthatnoanticipatorybailwillbegrantedtopersonsaccusedundertheAct;byrequiringapreliminaryenquiry;andbyprohibitingarrestundertheActexceptwithpermissioninwritingbytheappropriateauthority.
• Fourth,inRajeshSharmav.TheStateofUttarPradesh(2017),thecourtfeltthatSection498AoftheIndianPenalCodewasbeingmisused.
• SoitamendedthatSectionbyrequiringcomplaintsunderthatprovisiontobesenttoaFamilyWelfareCommitteeconstitutedbytheDistrictLegalServicesAuthority,althoughthereisnosuchrequirementinSection498A.
• Finally,theNationalGreenTribunal(NGT)orderedthatno15-year-oldpetrol-drivenor10-year-olddiesel-drivenvehiclewillplyinDelhi,andtheSupremeCourthasdirectedimpoundingsuchvehicles,thoughneithertheNGTnortheSupremeCourtarelegislativebodies.
Role of Judiciary in Legislative matters
• Judicialreview:Powerofjudiciarytoexaminetheconstitutionalvalidityoflegislativeenactmentsandexecutiveordersofthegovernment.
• Judicialactivism:Proactiveroleplayedbythejudiciaryinprotectionofrightsofcitizenandpromotionofjusticeinsociety.Itamountstotheassertiverolebyjudiciarywhereitforcestheothertwoorganstodischargetheirconstitutionalduties.
• Judicialrestraint:Roleofjudgesshouldbelimitedtoonlyinterpretationoflawandshouldleavethelaw-makingbusiness
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tothelegislatureandtheexecutive.
• Asitisagainsttheconstitutionalprincipleofseparationofpowersandsincejudiciaryisanon-electivebody,itdoesnotenjoypopularwilltomakelaws.
Conclusion
• Ifjudgesarefreetomakelawsoftheirchoices,notonlywouldthatgoagainsttheprincipleofseparationofpowers,itcouldalsoleadtouncertaintyinthelawandchaosaseveryjudgewillstartdraftinghisownlawsaccordingtohiswhimsandfancies.
• OurConstitutionisouractofrevolutionandtheJudiciaryitsprotector.TodaywhenthesameJudiciaryoverstepsitslimits,itisindispensablethatthedecisioniscorrected,reviewedandreversedbyalargerBench.
• InacountrygovernedbyawrittenConstitution,thedemocraticrightflowsfromtheattributeofconstitutionalsovereignty.Wecannotclaimourfundamentalrightoranyotherlegalrights,unlessweretainthestructureofoursovereignty.
Practice question
1. DoyouthinkthattheexecutivecourtsareaboontoIndiandemocracy.Analyse(200words)
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STATE-SPONSORED INSURANCE AND AYUSHMAN BHARAT
Context
• AreportbytheWorldHealthOrganisationhasshownthataround3.2%ofIndianswouldfallbelowthepovertylinebecauseofhighOut-of-pocket(OoP)healthexpenditure.
• WorldBankdata,in2015,showedthatnearly65%ofhealth-careexpenditureinIndiais“OutofPocket”(OoP).
• Thus,anationalhealthinsuranceschemeliketheAyushmanBharatiswelcome.
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Ayushman Bharat: Government funded healthcare program
• IndiatakesagiantleaptowardsprovidingaccessibleandaffordablehealthcaretothecommonmanwiththelaunchofAyushmanBharat-PradhanMantriJanAarogyaYojana(AB-PMJAY)
• AyushmanBharat–PradhanMantriJanAarogyaYojana(AB-PMJAY)isaparadigmshiftfromsectorial,segmentedandfragmentedapproachofservicedeliverythroughvariousnationalandStateschemestoabigger,morecomprehensiveandbetterconvergedandneedbasedservicedeliveryofsecondaryandtertiarycare.
• AyushmanBharat,forinstance,hasenhancedtheRashtriyaSwasthyaBimaYojana(RSBY),tocoveraround11crorefamilieswithayearlycoverageofRs.5lakh.
• ExpertsestimatethiswillrequireRs.25,000croreperyear,whenfullyimplemented.
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Flows of present insurance model
• Insuranceworksontheprincipleofpoolingtheriskofpolicyholders.Ifanindividual,corporationoraGovernmentcanbearacertainquantumofriskbythemselves,itisnotfinanciallysensibletoinsurewithaninsurancecompany.
• Thisisbecauseadministrativeoverheadsandprofitmarginsofinsurancecompaniesareincludedininsurancepremiumcosts.
• Forinstance,Lastyear,insurancecompaniesmadeabumperprofitof85%tothetuneofRs.15,029CroncropinsurancepremiumunderthePradhanMantriFasalBimaYojana.
Costs baring by the insurance companies
• Typicalinsurancecompanycostsinclude;
» designinginsuranceproductstosuitcustomerneeds
» actuarialinputtoassessandmanagerisk
» advertisingandmarketing
» empanelment(ofapprovedserviceproviderssuchashospitals)
» administrativeexpensestoprovidepriorapprovalofclaimsand
» processing,whichincludesfunctionssuchasfrauddetection.
• However,ofthese,thefirstthreearenotapplicabletoprogrammessuchasAyushmanBharatwhichwillbefullyfundedbythegovernmentasablanketscheme.
• Thegovernmentisalsofundingmorethan80%ofcropinsurance.Thelastthreefunctions,i.e.empanelingserviceproviders,pre-approvinghospitalisationofpatientsandsubsequentlysettlingtheclaim,arecommonlyoutsourcedtothird-partyadministrators(TPAs)evenbyinsurancecompanies.
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Therefore, best insurance model can be trust model and cost cutting
• NoinsurancecompanyhasthekindoffinancialresourcestheCentreandtheStateshave.
• However,inIndia,governmentscontinuetopayheftysumsinpremiumtoinsurancecompanies.
• Hence,governmentsmustconsiderbearingtheriskbythemselvesknownasthe“trustmode”insteadofusinginsurancecompaniesasrisk-bearersandintermediaries.
• CasestudyforTrustModel:StudyingtheAarogyasrischemeintroducedinundividedAndhraPradeshbythelateCongressChiefMinister,Y.S.RajasekharReddy(theforerunneroftheRSBY).
• Theyshowedthatthebidbyinsurancecompaniesonsuchhealthschemesincludeda20%marginforadministrativeexpenseandprofit.ByavoidinginsurancecompaniesandusingTPAsinstead,governmentscansaveabout15%,oruptoRs.6,000croreperyear.
• Thesesavingswillcontinuetoriseduetorisingpremiums.Thestudyalsofoundtheclaim-to-premiumratioandcustomersatisfactiontobebetterinthetrustmodethantheinsurancemode.Itwouldalsopreventexorbitantprofitsaccruingtoinsurancecompaniesingoodcroppingseasonsasin2017-18.
Conclusion
• WithAyushmanBharat–PradhanMantriJanAarogyaYojana,thegovernmentistakinghealthcareprotectiontoanewaspirationallevel.
• Thisisthe“world’slargestgovernmentfundedhealthcareprogram”targetingmorethan50crorebeneficiaries.
• ThegovernmenthasalreadyproclaimedthatitwishestocuttheintermediarythroughtheJAMtrinity(JanDhan-Aadhaar-Mobile)anddirectbenefittransfers.
• Ithasalsoindicatedthatitwantstooptimisefundutilisation
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throughtherecentlyintroducedPublicFinanceManagementSystem.
• Shiftingtothetrustmodewillbethenextnaturalstepinthispath,notonlysavingtaxpayermoneybutalsobenefitingfarmersandtheunderprivilegedinsteadofinsurancecompanies.
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STRENGTHENING THE ELECTION COMMISSION
Context
• PILforcreatingIndependentMechanismtoappointCECandECs:
• TheConstitutionBenchoftheSupremeCourtisexaminingapublicinterestlitigation(PIL)thatcouldbecriticalforIndiandemocracy.
• ThePIL,whichseeksthestrengtheningoftheElectionCommissionofIndia(ECI),includesaproposaltocreateanindependentmechanismtoappointtheChiefElectionCommissioner(CEC)andElectionCommissioners(ECs).
• Atpresent,CECandECsaresimplyappointedbythegovernmentoftheday,withoutanydefinedcriteriaorprocesses
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Election Commission of India
• ElectionCommissionofIndia(ECI)isaconstitutionalbodyunderArticle-324vestedwiththeresponsibilitiesofsuperintendence,directionandcontrolofconductofelections.ItconsistsofaChiefElectionCommissionerandtwoElectionCommissioners.
• Article324statesthattheElectionCommissionshallconsistofChiefElectionCommissionerandsuchnumbersofotherElectionCommissioners,ifany,asthePresidentmayfromtimetotimefixandappointmentofCECandotherECsshall,subjecttoprovisionsofanylawmadeinthatbehalfbytheParliament,bemadebythePresident.
• ThoughtheECIhassincebecomeaninstitutionofsomeauthority,therehavebeencontroversiesoverappointmentsofECs,allegationsofpartisanship,andnewproblemssuchasof
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20voterbriberyandpaidnews,whichtheECIhasnotbeenabletoaddresssofar.
Three critical decisions taken by Constituent Assembly
• WhentheConstituentAssemblydebatedhowfreeandfairelectionsshouldbeensured,threeimportantquestionsarose.
• Thefirstwaswhetherfreeandfairelectionsshouldbemadeapartoffundamentalrightsoranindependentinstitution,outsidetheexecutive,shouldbeestablishedtoconducttheelections.
• TheAssemblyoptedforthelatterandcreatedtheECI.
• Withlegalbackupandtheresourcestodevelopandenforceatransparentelectoralsystem,theECImadefreeandfairelectionsareality.
• Thesecondcriticaldecisionwastohaveasingle,centralisedbodyforelectionstotheLokSabhaandStatelegislatures.
• OneproposalwasthattheECIbeconfinedtofederalelections,andseparateinstitutionsbesetuptoconductelectionstoStatelegislatures.
• However,withincreasingtensionamongcommunities,theAssemblyfearedpartisanactionintheStatesandoptedforasinglenationalinstitution,theECI.Theimplicationsofthisdecisionwerecomplex.
• Itwasdebatedwhethertohaveasingle,centralisedbodyforelectionstotheLokSabhaandStateLegislatures.OneproposalwasthatECIbeconfinedtofederalelectionsandseparateinstitutionstobesetuptoconductelectionstoStateLegislatures.
• Atthattime,theAssemblyfearedpartisanactionintheStatesandoptedforasinglenationalinstitution.
• ThethirdquestionconcernedensuringtheindependenceoftheECI.
• IndependenceoftheECI,themannerofappointmentoftheCECandECswasdebated.
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• OnememberproposedratificationofCEC’sappointmentbytheLegislature,buttheConstituentAssemblydisagreedanditsimplyprovidedfortheCECtobeappointedbythePresident,leavingittotheLegislaturetoenactasuitablelaw.
• TheConstituentAssemblydidprovidethattheCECcouldonlyberemovedthroughtheprocessthatofSupremeCourtJudge.FortheElectionCommissioners,eventhissafeguardwasnotprovided.
Present issues that are in concern with ECI
• TheElectionCommissionofIndia(ECI)hassoughtcompleteindependencefromgovernmentcontrol.
• Atpresentonly,ChiefElectionCommissionerhassecurityoftenure.Also,itsbudgetisnotachargedexpenditure,butisvotedbytheParliament.
• ThereshouldbeaprovisioneitherinlaworbysomegovernmentresolutionthattheseniormostECshouldbeautomaticallyelevatedasCECinordertoinstilafeelingofsecurityinthemindsoftheECsandthattheyareinsulatedfromexecutiveinterferenceinthesamemannerasCEC.
• Atpresent,thereisnospecificprovisioninthelawtothiseffectandcommissionhastoresorttoextraordinarypowersunderArticle324ofconstitutionwhich,itfeelsshouldbeusedsparingly.
• IfitisapprovedbytheLawMinistry,thepollpanelwillbefreetoframeitsownrecruitmentrulesandshortlistandappointofficersonitsown.Itcanthenalsodrawcompetentprofessionalsandexpertsfromthejobmarket.
Way forward
• ThereshouldbepubliclyreprimandedforpoliticiansforviolatingtheModelCodeofConduct,postponed/canceledelectionsiftheircredibilitywascompromised,intensifiedsupervisionofelections,andinsistedonactionagainsterrantofficials.
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• IthasalsosoughtabsolutefinancialfreedomfromtheLawMinistry.LiketheCAGandUPSC,theECIwantsitsbudgettobe‘charged’totheConsolidatedFundasopposedtothecurrentpracticeofbeingvotedandapprovedbyParliament.
• ECIhasalsoproposedanindependentsecretariatforitselfwithwhichitwillnothavetodependonDoPTtoappointitsofficers.
• Thereisaneedforconstitutionalprotectionforallthreeofitsmembersasopposedtojustoneatpresent.ItstwoElectionCommissionerscanberemovedbythegovernmentontherecommendationoftheChiefElectionCommissioner.
• TheECIwantsprintmediatobeincludedinSection126oftheRPAct.Thissectioncurrentlyprohibitspublicationofadsbypoliticalpartiesinelectronicmedia(TV,radio)andrecentlyaddedsocialmedia,48hoursbeforevotingends.
• TheECIsoughtamendmenttoRPAtoincludespecificpowerstopostponeorcountermandpollsonthegroundsofuseofmoneypower.
Conclusion
• ECIhasbeenensuringdemocratictransferofpoliticalpowerfromonesetofrepresentativestoothersinceindependence.
• However,inrecenttimes,itisembroiledinvariousissues&controversiessuchasEVMmalfunctioning,announcementofelectiondatestobenefitrulinggovernment,moneyandmuscleroleinelectionsetc.
• Duringthe1996generalelection,theECIrestoredthecredibilityoftheelectionprocess.TheCEC,T.N.Seshan,reinterpretedtheECI’sroleandpowers,andprovidedcombative,forcefulleadership.
• Ashistoryshows,inadequateleadershipisthebaneofourpublicinstitutions.Safeguardstoensurethatethicalandcapablepeopleheadthemarecrucial
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INTERNATIONAL TOURISM MART: TOURISM INDUSTRY IN INDIA
Context
• Itisannualeventorganizedinnorth-easternregionwiththeobjectiveofhighlightingtourismpotentialofregionindomesticandinternationalmarkets.
• ItprovidesplatformtotourismbusinessfraternityandentrepreneursfromeightNorthEasternStates.
• The7theditionofthe‘InternationalTourismMart’washeldinAgartala,thecapitalcityofTripura.Thethemeforthisyearis“AdventureTourism”.
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Tourism industry
• TourisminIndiaisimportantforthecountry’seconomyandisgrowingrapidly.TheWorldTravelandTourismCouncilcalculatedthattourism9.4%ofIndia’sGDPin2017andsupported8%ofitstotalemployment.
• Accordingto“Travel&TourismEconomicImpact2018India”reportbyWorldTravelandTourismCouncilthesectorisexpectedtogrowatanannualrateof6.9%to9.9%ofGDPby2028.
• SudipBandyopadhyaycommitteeobservedthattheforeignexchangeearningsfromtourismwerearoundUSD21.07billionduring2015
• TheTravelandTourismCompetitivenessReportfortheyear2017,rankedIndia40thoutof136countries.
• ItmentionsthatIndiahasgoodpricecompetitiveness,airtransport,groundtransportinfrastructure.
• However,someotheraspectsofitstourisminfrastructureremainsomewhatunderdeveloped.Thenationhasveryfewhotelroomspercapitabyinternationalcomparisonandlow
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21ATMpenetration.
Issues related the industry
• Lackofinfrastructure:Tourism-associatedeconomicandsocialinfrastructure–hotels,connectivity,humanresources,hygiene,healthfacilities,etcarelargelyunderdevelopedinIndia.
• SafetyandSecurityissues:itisamajorroadblocktothetourismdevelopment.Attacksonforeignnationals,especiallyonwomen,raisequestionsaboutIndia’sabilitytowelcometouristsfromfarawaycountries.
• Connectivityissues:Majorityofthetouristspotsinthecountryarenoteasilyaccessible.Thisisbecauseofhighcostsoftravelling,poorconnectivityandaseriesofpermissionsrequiredforvariousreasons.
• Fluctuationsincurrencyexchangerates:thisiscreatingfluctuationsinthenumberofforeigntouristsvisitingthecountry.
• Seasonaldependenceofthemarketisreducingtheemployabilityofthesector.
• Complextaxationsysteminthecountryishavingadetrimentaleffectonthesector.
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Related schemes
• InfrastructureReformsandTourism
» A.SagarmalaprojectbeginningwithCharDhamYatralinkingPuriJagannathaTempletoDwarakabyseaviavariousplacesofreligiousinterestenroute.
» B.SwadeshDarshanschemeisoneamongtheflagshipschemesoftheMinistryofTourismfordevelopmentofthematiccircuitsinthecountryinaplannedandprioritisedmanner.UnderthisschemetheGovernmentisfocusingondevelopmentofqualityinfrastructureinthecountrywithobjectiveofprovidingbetterexperienceandfacilitiestothevisitorsononehandandonotherhandfosteringtheeconomicgrowth.
» C.HRIDAYandPRASADschemescreatingagroupofculturallyimportantcitiesandtheirnetwork.
• TouristTrainingSchools,SkillIndiaandTourism
» A.MinistryofTourismrollsoutIncredibleIndiaTouristFacilitatorCertification(IITFC)Programme.ItwillenableIndiancitizenstodevelopandenhancetheskillsassociatedwithtourism,andwhereonecanincorporateknowledgeaboutfacilitatingtouristsacrossthecountry.
• SwachhBharat:
» A.MinistryofTourismisorganizingthe‘SwachhtaHiSeva’campaignatvariousimportanttouristsitesacrossthecountry.
» B.PartneringwithShulabhInternational(NGO)forscalinguppay-and-usetoiletsratherthandependingonfreepublicutilities(asithasbeenobservedthatformertyperemainmoreuserfriendlyduetoregularmaintenancethangovernmentones)
» C.Specialfocusoncleanlinessandwomensafetyoftouristsites
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• e-technology
» A.TourismMinisterlaunchesIncredibleIndiamobileApp.ItshowcasesIndiaasaholisticdestination,revolvingaroundmajorexperiences,suchasspirituality,heritage,adventure,culture,yoga,wellnessandmore.Themobileapphasbeendesignedkeepinginmindthepreferencesofthemoderntravelerandfollowsthetrendsandtechnologiesofinternationalstandards.
• AccessibleIndia
» A.IndiaandtheRepublicofKoreasignMoUforstrengtheningcooperationinthefieldofTourism.TheRepublicofKoreaisoneoftheleadingtouristsgeneratingmarketforIndiafromEastAsia.ForeignTouristArrivals(FTAs)fromtheRepublicofKoreain2017were1,50,000.
Probable way out
1. Islandtourism:NITIAayogthroughitsplanfor“holisticdevelopmentoftheislands”issettoboosteco-tourisminLakshadweeplagoons.ItisplanningtosetupislandwatervillaswhichinturnwillbeapopularalternativetoleadingdestinationssuchasMauritiusandMaldives.
2.Statemodels:KeralaTourism’s‘YallaKerala’printmediacampaignintheGulfcountries,showcasedtheState’sgreeneryandbackwaters.
3.StandingCommitteeonRailways(Chair:Mr.SudipBandyopadhyay)submittedareporton‘TourismPromotionandPilgrimageCircuit’.TherecommendationsoftheCommitteeare:
» A.Railways’roleintourism:TheCommitteenotedthatRailwayscanplayacrucialroleinpromotingtourisminthecountrybecauseofitswidereach.Italsoprovidesaneconomicandeco-friendlymeansoftransportacrossthecountry.Itcantapintothenumerouspilgrimagecentersacrossthecountry.ItrecommendedthatthereshouldberepresentationfortourismintheRailwayBoardwhichwouldhelpthemframetourismrelatedpolicies.
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» B.Financialoverview:Thecommitteenotedthatnofundsforpromotionofpilgrimplacesareprovidedseparately.Itrecommendedthatthebudgetallocationfortourismshouldbeincreasedimmediately,andaseparatefundbecreatedforthepromotionoftourismandpilgrimageinIndia.
» C.Tourismpromotion:ithastodonebyconnectinglocationsofhistoricandculturalimportance.
» D.Proactiveadvertisementandpublicity
International institutions working on it
• UnitedNationsWorldTourismOrganization(UNWTO):IndiatochairtheProgrammeandBudgetCommitteeofUNWTOExecutiveCounciltill2021.
» ItistheUNagencyresponsibleforthepromotionofresponsible,sustainableanduniversallyaccessibletourism.
» TheUNWTOExecutiveCouncilrepresentstheOrganization’sgoverningbodywhosetaskistotakeallnecessarymeasuresinconsultationwiththeSecretary-General,forimplementationofitsowndecisionsandrecommendationsoftheAssemblyandreportthereupontotheAssembly.
» TheCouncilmeetsatleasttwiceayear,thenexttobeheldinBahrain.
» Thecouncilconsistsof35FullMemberselectedbytheassemblyinproportionofonememberforeveryFiveFullMembers,inaccordancewiththeRulesofProcedurelaiddownbytheAssemblywithaviewtoachievingfairandequitablegeographicaldistribution.
• PacificAsiaTravelAssociation
» ThePacificAsiaTravelAssociation(PATA)isamembershipassociationworkingtopromotetheresponsibledevelopmentoftravelandtourismintheAsiaPacificregion.
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» Itwasfoundedin1951.
» PATAisanot-forprofitassociationthatisinternationallyacclaimedforactingasacatalystfortheresponsibledevelopmentoftravelandtourisminAsiaPacificregion.
» ThePATAAwardsarepresentedtooutstandingentriesintheprincipalcategoriesofMarketing;EducationandTraining;Environment,andHeritageandCulture.
• InternationalBuddhistConclave:MinistryofTourism,GovernmentofIndia,hasbeenorganizingtheInternationalBuddhistConclavebiennially.
» IBC2018willhaveareligious/spiritualdimension,anacademicthemeandadiplomaticandbusinesscomponent.
TheMinistryhasplannedtoorganizean‘Investors’Summit’duringtheConclavetoattractinvestmentsindevelopingworldclassinfrastructure
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SENTINELESE ISSUE AND OTHER PVTG RELATED ISSUES.
Context
• ThedeathofanAmericantouristwhoillegallyvisitedtheisolatedNorthSentinelIslandhaddrawntheworld’sattentiontothesmallisland’sreclusiveinhabitants.
• They’reoneofthefewmostly“uncontacted”groupsleftintheworld,andtheyowethatisolationpartlytogeography--NorthSentinelisasmallisland,offthemainshippingroutes,surroundedbyashallowreefwithnonaturalharbors--partlytoprotectivelawsenforcedbytheIndiangovernment,andpartlytotheirownfiercedefenseoftheirhomeandtheirprivacy.
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Sentinelese
• TheSentinelese,anegritotribewholiveontheNorthSentinelIslandoftheAndamans,havenotfacedincursionsandremainhostiletooutsiders.
• TheinhabitantsareconnectedtotheJarawaonthebasisofphysical,aswellaslinguisticsimilarities.
• SomeresearchersarguethattheSentinelesehavebeenmostlyleftaloneevenfromcolonialtimes,unlikeothertribessuchastheOnges,JarawasandGreatAndamanese,becausethelandtheyoccupyhaslittlecommercialattraction.
• In1991theirheadcountwasputat23.Census2001counted39inhabitants.
• TheGovt.ofIndiaissuedtheAndamanandNicobarIslands(ProtectionofAboriginalTribes)Regulation,1956todeclarethetraditionalareasoccupiedbythetribesasreserves,andprohibitedentryofallpersonsexceptthosewithauthorization.
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• Photographingorfilmingthetribemembersisalsoanoffence.
• Theruleswereamendedlatertoenhancepenalties.Butrestrictedareapermitswererelaxedforsomeislandsrecently.
Constitutional provisions for tribes
• ReservationineducationalinstitutionhasbeenprovidedinArticle15(4)whilereservationinpostsandserviceshasbeenprovidedinArticle16(4),16(4A)and16(4B)oftheConstitution.
• Article23whichprohibitstrafficinhumanbeingsandbeggarandothersimilarformsofforcedlabourhasaspecialsignificanceforScheduledTribes.InpursuanceofthisArticle,ParliamenthasenactedtheBondedLabourSystem(Abolition)Act,1976.
• Article24prohibitsemploymentofChildrenbelowtheageof14yearsinanyfactoryormineorinanyotherhazardsactivityisalsosignificantforScheduledTribesasasubstantialportionofchildlabourengagedinthesejobsbelongtoScheduledTribes.
• Article46oftheConstitutionprovidesthattheStateshallpromotewithspecialcaretheeducationalandeconomicinterestsoftheweakersectionsofthesocietyandinparticular,oftheScheduledCastesandScheduledTribesandshallprotectthemfromsocialinjusticeandallformsofexploitation.
• Article243DprovidesreservationofSeatsforScheduledTribesinPanchayats.
• Article330providesreservationofseatsforScheduledTribesintheHouseofthePeople.
Related acts and policies
• ForestRightsAct–2006:TheActgrantslegalrecognitiontotherightsoftraditionalforestdwellingcommunities,partiallycorrectingtheinjusticecausedbytheforestlaws.RightsundertheActare:
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» Titlerights–i.e.ownershiptolandthatisbeingfarmedbytribalsorforestdwellerssubjecttoamaximumof4hectares;ownershipisonlyforlandthatisactuallybeingcultivatedbytheconcernedfamily
» Userights–tominorforestproduce(alsoincludingownership),tograzingareas,topastoralistroutes,etc.
» Reliefanddevelopmentrights–torehabilitationincaseofillegalevictionorforceddisplacement;andtobasicamenities,subjecttorestrictionsforforestprotection.
» Forestmanagementrights–toprotectforestsandwildlife.
• ProtectionofCivilRightsAct
» Acttoprescribepunishmentforthe[preachingandpracticeof-“Untouchability”]fortheenforcementofanydisabilityarisingtherefromformattersconnectedtherewith.
• SC/ST(PreventionofAtrocities)Act
» ActtopreventthecommissionofoffencesofatrocitiesagainstthemembersoftheScheduledCastesandtheScheduledTribes,toprovideforSpecialCourtsforthetrialofsuchoffencesandforthereliefandrehabilitationofthevictimsofsuchoffencesandformattersconnectedtherewithorincidentalthereto.
• TheProvisionsofthePanchayats(ExtensiontothescheduledAreas)Act,1996
» Panchayats(ExtensiontoScheduledAreas)Act,1996orPESAisalawenactedbytheGovernmentofIndiatocoverthe“Scheduledareas”,whicharenotcoveredinthe73rdamendmentorPanchayatiRajActoftheIndianConstitution.“ScheduledAreas”meanstheScheduledAreasasreferredtoinClause(1)ofArticle244oftheConstitution.Itprovidesthatastatelegislationonpanchayatsinthescheduledareashouldtakecareofthecustoms,religiouspracticesandtraditionalmanagement
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practicesofcommunityresources
PVTG and related developments
• ParticularlyVulnerableTribalGroups(PVTGs)aremorevulnerableamongthetribalgroups.Duetothisfactor,moredevelopedandassertivetribalgroupstakeamajorchunkofthetribaldevelopmentfunds,becauseofwhichPVTGsneedmorefundsdirectedfortheirdevelopment.
• Inthiscontext,in1975,theGovernmentofIndiainitiatedtoidentifythemostvulnerabletribalgroupsasaseparatecategorycalledPVTGsanddeclared52suchgroups,whilein1993anadditional23groupswereaddedtothecategory,makingitatotalof75PVTGs.
• In1973,theDhebarCommissioncreatedPrimitiveTribalGroups(PTGs)asaseparatecategory,whoarelessdevelopedamongthetribalgroups.PVTGshavesomebasiccharacteristics:
» 1. mostlyhomogenous,
» 2. smallpopulation
» 3. relativelyphysicallyisolated
» 4. socialinstitutescastinasimplemould
» 5. absenceofwrittenlanguage
» 6. relativelysimpletechnology
» 7. slowerrateofchange
Issues of PVTG in Andaman and Nicobar
TherearefivePVTGsintheAndamanislandssuchas;
• GreatAndamanese
» decliningpopulation:ThegrowthofPVTGs’populationiseitherstagnatingordeclining,comparedtothegeneralpopulationgrowth,particularlyintheAndamanand
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NicobarIslandswherethedecliningrateisveryhigh.Eg:-In1858,theGreatAndamanesewereestimatedatnearly3500,Buttoday,just53survive.
» Healthanddiseases:Theyarevulnerabletocommunicablediseasesbesidesunhealthydrinkinghabits,acquiredaftercontactwiththenon-tribal,urban,dominantandadvancedcommunities.
• Jarawas
» TheprincipalthreattotheJarawa’sexistencecomesfromencroachmentontotheirland,whichwassparkedbythebuildingofahighwaythroughtheirforestinthe1970s.
» AlthoughIndia’sSupremeCourtin2002orderedthatthehighwaythroughtheJarawa’sreserveshouldbeclosed,itremainsopen–andtouristsuseitfor‘humansafaris’totheJarawa.ThetouriststreattheJarawalikeanimalsinasafaripark.
» PoachersentertheJarawa’sforestandstealtheanimalsthetribereliesonfortheirsurvival.TheyhavealsointroducedalcoholandmarijuanaandareknowntosexuallyabuseJarawawomen.
» Theyremainvulnerabletooutsidediseasestowhichtheyhavelittleornoimmunity.
• Sentinelese
» Theirextremeisolationmakesthemveryvulnerabletodiseasestowhichtheyhavenoimmunity,meaningcontactwouldalmostcertainlyhavetragicconsequencesforthem.
» illegalpoachingintheirwaters
» Peoplearetryingtomakeacontactwiththem
• Onges
» Theyareasemi-nomadictribeandfullydependentonthefoodprovidedbynature.Theyhavenowexperiencedtheimpactofoutsiders,aseffortsatbefriendingthemhave
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provedsuccessful.Theyhavebeenprovidedwithpuccahouses,food,clothes,medicineetc.bytheadministration.
• ShomPens.
» Landencroachment:Amajorinfluxofpopulationstartedin1969withthesettlementofseveralhundredex-servicemenfromthemainland.
Related schemes
• Schemeof“DevelopmentofParticularlyVulnerableTribalGroups(PVTGs)”
» Underthescheme,Conservation-cum-Development(CCD)/AnnualPlansaretobepreparedbyeachState/UTfortheirPVTGsbasedontheirneedassessment,whicharethenappraisedandapprovedbytheProjectAppraisalCommitteeoftheMinistry.ActivitiesfordevelopmentofPVTGsareundertakeninSectorsofEducation,Health,LivelihoodandSkillDevelopment,AgriculturalDevelopment,Housing&Habitat,ConservationofCultureetc.
• RestrictedAreaPermit(RAP)regime:RAPregimewasnotifiedundertheForeigners(RestrictedAreas)Order,1963.
» Underit,foreignnationalsarenotnormallyallowedtovisitprotectedorrestrictedareaunlessGovernmentissatisfiedthatthereareextra-ordinaryreasonstojustifytheirvisit.
Probable solutions
• AlongwiththeCensus,apropersurveyshouldbeconductedtocomprehensivelycapturethedataonPVTGspopulationenumeration,healthstatus,nutritionallevel,education,vulnerabilitiesetc.Thiswouldhelpimplementwelfaremeasuresbetter
• Ofthe75PVTGs,thosegroupswhosepopulationisdecliningshouldbeclearlyidentifiedandsurvivalstrategyshouldbedevised
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• PVTGsthreatenedwithrelocationofwildlifeareasordevelopmentprojectsshouldbeidentifiedandactionablestrategiesshouldbedevisedtopreventthesame
• ItisimportanttorecognisetheinnateconnectionbetweenPVTGsandtheirlandsandhabitats.Therefore,arights-basedapproachfordevelopmentofPVTGsshouldbeadopted.
Practice question
1. InthelightofrecentdevelopmentswiththeSentinelese,doyouthinkthattheTribalPanchSheelisvalidtodate?(200words).
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MINIMUM WAGES ACT FOR DOMESTIC WORKERS AND RELATED ISSUES OF UNORGANISED SECTOR EMPLOYEES.
Context
• ApetitionhasbeenfiledintheSupremeCourtseekingitsinterventiontobringdignitytothedomesticworkers.Demandsofthepetitionare:
• ThepetitionaskedtheSupremeCourttolaydownguidelinestoprotecttheworkers’rights.
• ThepetitionsoughttherecognitionofdomesticworkundertheMinimumWagesAct,1948.
• TheirworkhoursshouldbereducedtoeightadayandtheyshouldbegivenamandatoryweeklyoffasabasicrightunderArticle21.
• Domesticworkerisapersonwhoisinvolvedindomesticworklikecleaning,washing,cookingetc.He/sheplaysanimportantroleinthewellbeingofthefamilybutareoftenneglectedandabusedbythemembersoffamilyandthesociety
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Constitutional provisions
• Article23oftheConstitutionprohibitstrafficinhumanbeingandbeggarandothersimilarformsofforcedlabour.
• Article24oftheConstitutionprohibitsemploymentofchildrenbelow14yearsofageinfactoriesandhazardousemployment.Thisprovisioniscertainlyintheinterestofpublichealthandsafetyoflifeofchildren.
• Article43requirestheStatetotakesteps,bysuitablelegislationorinanyotherwaytosecuretheparticipationofworkersinthemanagementofundertakings,establishmentsorotherorganizationsengagedinanyindustry.Article43referstoa“livingwage”andnot“minimumwage”.The
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conceptoflivingwageincludesinadditiontothebarenecessitiesoflife,suchasfood,shelterandclothing,provisionsforeducationofchildrenandinsuranceetc.
Related acts and policies
• TheUnorganisedWorkers’SocialSecurityAct2008:TheStateGovernmentsaremandatedtoregistertheUnorganisedWorkersandtoprovidebenefitsofwelfareschemesotherthanthethreebasicsocialsecurityschemesoftheCentralGovernmenti.e.(i)lifeanddisabilitycover,(ii)healthandmaternitybenefits,and(iii)oldageprotection.
» EnvisagescreatingNationalSocialSecurityBoardwhichwillbechairedbyUnionMinisterforLabourandEmployment&DirectorGeneral(LabourWelfare)asMember-Secretary[bothex-officio].
» EnvisagescreatingStateSocialSecurityBoardatstatelevelwhichwillbechairedbyMinisterforLabourandEmploymentoftheconcernedstate&thePrincipalSecretaryorSecretary(Labour)asMember-secretary[bothex-officio].
• NationalPolicyonSkillDevelopment:Thetargetgroupforskilldevelopmentcomprisesallthoseinthelabourforce,includingthoseenteringthelabourmarketforthefirsttime(12.8millionannually),thoseemployedintheorganizedsectorandthoseworkingintheunorganizedsector.Indiahassetatargetofskilling500millionpeopleby2022.
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Issues in unorganized sector
• Issuesofdomesticworkers
» NGOCommonCausesaystheyarepronetoviolenceandabuseatthehandsoftheiremployersandplacementagencies
» Absenceofproperdocumentationincreasestheirrelianceonemployerstoaccesssocialsecuritybenefits.
» Indiawitnesseda120%increaseindomesticworkersinthedecadepostliberalization.
» domesticworkfallsunderthepurviewofstatesphere
General issues
» Insufficientlabourlawscauseslowregulatoryframework.
» Nosocialsecurityaffectingtheirconsumptionpatternandoverallsocialdevelopment.
» Noguaranteedminimumwagesandtemporarynatureofthework.
» BondedlabourandChildLabourprevails.
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» ForworkingWomenissueofharassmentatworkplaceishigherthanformalworkplaces.
» Lowliteracyratesamongthemreducestheirdemandingpower.
» Lowincomes
» Vulnerabletodiseasesduetolackofhygiene
Scheme for the unorganised sector in India
• AamAdmiBimaYojna
• RashtriyaSwasthyaBimaYojna
• AtalPensionYojana
• JananiSurakshaYojana
• NationalFamilyBenefitScheme
Way forward
• DiscussionsareunderwayregardingaPolicyforDomesticWorkers,thesalientfeaturesofwhichareasfollows:
» InclusionofDomesticWorkersintheexistinglegislations
» RegistrationofDomesticworkers.
» Righttoformtheirownassociations,tradeunions
» Righttohaveminimumwages,accesstosocialsecurity,protectionfromabuse,harassment,violence
» Righttoenhancetheirprofessionalskills
» ProtectionofDomesticWorkersfromabuseandexploitation
» DomesticWorkerstohaveaccesstocourts,tribunals,etc.
» Establishmentofamechanismforregulationofplacementagencies.
• ManyoftheStateGovernmentlikeRajasthan,Kerala,Punjab,TamilnaduandTripurahaveincludeddomesticworkersinthescheduleoftheMinimumWagesActandworkers
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are,therefore,entitledtofilecasesbeforetheconcernedauthoritiesincaseofanygrievanceinthisregard.Theseshouldbefollowedbyotherstatesaswell
• IndianeedtoratifyInternationalLabourOrganisation’sConvention189onDecentWorkforDomesticWorkers.
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RCEP AND RECENT DEVELOPMENT: INDIA
Context
• Withjustabout40%oftheagendaitemshavingbeenresolved,thereisstillalongwaytogobeforetheRegionalComprehensiveEconomicPartnership(RCEP)talksareconcluded.
• OneimpactofthiswasthatJapanalsorealisedtheimportanceofwhatweweresayingandthatIndiawasnotjustmakingatechnicalpointandthatitwasseriousabouttheissueandsotheyalsostartedsupportingIndia.
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Background
• RegionalComprehensiveEconomicPartnership(RCEP)isaproposedfreetradeagreement(FTA)betweenthetenmemberstatesoftheAssociationofSoutheastAsianNations(ASEAN)(Brunei,Burma(Myanmar),Cambodia,Indonesia,Laos,Malaysia,thePhilippines,Singapore,Thailand,Vietnam)andthesixstateswithwhichincludeIndia,China,Australia,Japan,SouthKoreaandNewZealand.
• Intotal,thegroupingof16nationsincludesmorethan3billionpeople,hasacombinedGDPofabout$17trillion,andaccountsforabout40percentofworldtrade.Ifnegotiatedsuccessfully,RCEPwouldcreatetheworld’slargesttradingblocandhavemajorimplicationsforAsiancountriesandtheworldeconomy.
• The33rdeditionoftheASEANSummitconcludedonNovember15,2018atSuntecSingaporeConventionCentre,Singapore.
• TheSummitalsosawtheconclusionofotherrelatedsummitslike13thEastAsiaSummit(EAS),2ndRegionalComprehensive
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EconomicSummit,(RCEP)andASEANplussummits.TheHeadsofparticipatingcountriesofRegionalComprehensiveEconomicPartnership(RCEP)alongwiththeASEANMembersandASEAN’sFreeTradeAgreement(FTA)partnersAustralia,China,India,Japan,Korea,andNewZealandattendedthe2ndRCEPSummitonNovember14,2018inSingapore.
History
• RCEPnegotiationswereformallylaunchedinNovember2012attheASEANSummitinCambodia.
• Itaimstocovergoods,services,investments,economicandtechnicalcooperation,competitionandintellectualpropertyrightsunderitsambit.
• RCEPisviewedasanalternativetotheTrans-PacificPartnership(TPP),aproposedtradeagreementthatincludesseveralAsianandAmericannationsbutexcludesChinaandIndia.
Importance of RCEP
• TheRCEPmembercountriesrepresent49%oftheworld’spopulationandaccountsfor30%ofworldGDP.Italsomakesup29%ofworldtradeand26%ofworldFDIinflows.
• AccordingtoestimatesiftheRCEPisimplementeditwouldbringlargeincomegainstonotonlyAsiabuttheworldeconomy.
• RCEPwillalsoreducetheoverlappingbetweenAsianFTAs.
• RCEPwillreducethetradebarriersinAsiaandthenewruleswillbeconsistentwithWTOagreements.
• RCEPwillpromoteeasierFDIflowsandtechnologytransfersbymultinationalcorporations
• RCEPandprotectionism:Withriseofprotectionism,RCEPisimportantforpromotingfreetradeintheregion
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Achievements on 2nd RCEP Summit & 7th RCEP Inter-sessional Ministerial Meeting concluded in Singapore
• Reaffirmedourcommitmentmadeatthelaunchofthenegotiationstoachieveamodern,comprehensive,high-qualityandmutuallybeneficialeconomicpartnershipagreementestablishinganopentradeandinvestmentenvironmentintheregiontofacilitatetheexpansionofregionaltradeandinvestmentandcontributetoglobaleconomicgrowthanddevelopment.
• UndertookthecollectivecommitmenttodeliverontheexpeditiousconclusionoftheRCEPnegotiationstofosteranopen,inclusive,andrules-basedtradingsystem,anddemonstratetotheworldthatitispossibletomaketradeworkforall.
• Leadersaredeterminedtoconcludeamodern,comprehensive,highquality,andmutuallybeneficialRCEPin2019.
• ReiteratedthevalueofcontinuedengagementwithvariousstakeholdersoftheRCEP
Burning issues
• Hugeeconomicdisparitiesamongthenegotiatingcountriesarelikelytoposeachallenge
• AninevitablesourceoftrustdeficitbetweenChinaandtherestwhichhasthepotentialtoconstrainregionaleconomiccooperationisChina’saggressiveposturesonterritorialdisputeswithJapanandIndiaandwithASEANmembercountriesontheSouthChinaSeadisputes.ThiscanposeasahurdleinfinalnegotiationofRCEP
• Theexisting5ASEAN+1and23ratifiedbilateralFTAs,varyinggreatlyintheirterms,poseasignificanthurdletoRCEPnegotiations.
• ThelackofcommonalityacrossFTAsandvaryinginternal
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policiesofcountrieswouldprovetobeadifficulttasktoharmonizeandconsolidateunderRCEP.
Disputes with India
• Skewedtradespectrum:NITIAayognotesaidwhiletradeagreementsareameanstopromotebilateraltrade,withbothpartiesbenefitingasaresultoftradecomplementarities,withChina,India’stradeseemstobeskewedandChina’scapacityoverhanginmostsectorsmayleadtoasurgeofimportsintoIndiawithverylimitedaccessforIndianexportstotheChinesemarket.
• Inagricultureandalliedproducts,theplantationsectorisalreadyreelingfromtheimpactoftheIndia-ASEANFTAevenwithrelativelyhighprotectionofagricultureandatariff-coverageof73-80percent.Iftariffcutscover92-80percentofproducts,theimpactwillbehuge.Ontheotherhand,NewZealand’sexport-orienteddairyproductswilldecimateIndia’sgrowingdairysector,whichisstilllargelysmall-scale.
• ImpactonManufacturing:Accordingtocivilsocietyrepresentatives,reductionofimportdutiestopromoteglobalvaluechainwillleadtomasslayoffs,lowwagesandexploitationoflabour.
• JapanandSouthKoreahasaskedIndiatoeliminateexportrestrictionsonmineralsandrawmaterials.Thismaythreatendomesticrawmaterialavailabilityforindustrialisationandencourageover-mining.Indianexpertsopinethatthiswouldleadtoanewformofneo-colonialism.
• E-commercecommitments:ItwillallowcompaniessuchasAlibabafromChinatodisplaceIndianmanufacturingespeciallyintheSMEsegment.
• Intellectualpropertyrights:severalmembershavebeenpushingprovisionsthatgobeyondTRIPS,withseriousadverseconsequencesforaccesstogenericmedicinesmanufacturedinIndia.
• Demandforlabourmovement:AtRCEPnegotiations,IndiahasdemandedforbothMode3(investments)andMode
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4(movementofpeople)withaRCEPbusinessvisaforprofessionals.
• However,RCEPcountrieslikeAustraliaandSingaporehavebeenunwillingtoaccommodateIndia’sdemandstoliberalisetheirservicesregimeandallowfreermobilityofIndianworkers
Way forward
• Beforegettingintoanymultilateraltradedeal,IndiashouldreviewitsexistingFTAsintermsofbenefitstovariousstakeholderslikeindustryandconsumers,tradecomplementaritiesandchangingtradepatternsinthepastdecade.
• NegotiatingbilateralFTAswithcountrieswheretradecomplementaritiesandmarginofpreferenceishighmaybenefitIndiainthelongrun.
• Well-balancedFTAdealsaddressingtheconcernsofallthestakeholdersistheneedofthehour.
Conclusion
ConnectivityistobetheprimaryfocusbetweenIndiaandASEANmembers. Even though India doesn’t have adequate resourceslikeChina,acollaborativeeffortslikeAfrica-Asiagrowthcorridorcould achieve tangible results. Further strengthening the FTYAbetweenthetwoblockswilladdnewdimensionstotheageoldrelationship.Arelationshipbasedonmutualtrustandacceptanceisonlysustainableforlong.
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WATER DEFICIT IN INDIA
Context
• Waterscarcityinvolveswaterstress,watershortageordeficits,andwatercrisis.Thismaybeduetobothnatureandhumans.Mainfactorsthatcontributetothisissueincludepoormanagementofresources,lackofgovernmentattention,andman-madewaste.
• GlobalWaterMonitor&ForecastWatchListhasbeenreleasedbyIScience(USbasedlimitedliabilityCorporation).Asperthereport,waterdeficitswillincreaseandintensifyinIndiain2019.
• Adroughtisaperiodofbelowaverageprecipitationinagivenregionresultinginprolongedshortagesinitswatersupply,whetheratmospheric,surfacewaterorgroundwater.Aftertwosuccessivedryyears,330mpeopleinIndia,aroundaquarterofthepopulation,arefacingacutewatershortages.
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Reasons
• Agriculture
» Excessiveuseofgroundwaterforagriculturehasalsocausedastrainintheresource.Eg:-ineffectivetechniquesusedforirrigationalignedwithmismanagement
» Between85and90percentofallwaterconsumedinIndiaisusedbytheagriculturalsector
» Subsidizedenergyandwaterpumpsbecausefarmersformalargeportionofvotingpopulation.Usingsubsidizedelectricity,farmerspumpgroundwateratwill,drawingupmoreannuallythanChinaandAmericacombined.
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» Maharashtraisagoodexampleofthisasitssugarbelttakesuponlyfourpercentoffarmlandbutconsumesovers70percentofthestate’sirrigationwater.
• Pollution
» increasedamountofsolidwastesinwatersystemssuchaslakes,canalsandriversalsoheavilypollutethewater
» Upto80percentofallsurfacewaterinIndiaispolluted.
» Poorsewagetreatmentfacilities,littlepublicsanitation,poverty,industrialrunoffandalackofgovernmentregulation.
• demandforfreshwaterisincreasingwiththegrowingpopulation
• Lackofstrictstateregulationongroundwaterdevelopmenthascausedastrainontheamountoffreshwateravailable.
• Indifferencefrombureaucraticpowersandconstantneglecthascausedtheproblemtointensify
• Deforestation,landconversionanddegradation,aswellasurbanencroachmentduetoillegalconstruction,posemajorthreatstothewaterbearingcapacity
Impacts and remedies
Impacts
• Fallingwaterlevelswilladverselyaffecttheagriculturalindustry,whichisalmostentirelycerealbasedandthereforeextremelywaterintensive.
• Astrugglingagriculturalindustrymeansthethreatofunemploymentforapproximately50percentofIndia’sworkforce,aswellasimplicationsforfoodsecurityandhumansecurity
• Incidentsoffever,infection,dehydration,vomitingandkidneyailments
Remedies
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• NationalRiverLinkingProject
» Theconceptoflinkingriversisnotuncommon,Chinaintroducedasimilarprojectoveradecadeago
» Interlinkingofriverswillhelpwaterscarceareastohavewaterthroughouttheyear.
• ImplementingIsrael’swatermanagementsystemsandtechnologies
• Longterminvestmentineducationalprograms,socialawarenesscampaigns,improvedinfrastructureandfacilities,andwaterdiplomacy
• Rainwaterharvestingcanprovidethecountrywithreliablewatersuppliesthroughouttheyear.
• Buildingcheckdamsonriverbedswillimprovegroundwaterlevels.
• Sustainableagriculturalpractices:Farmersshouldbetrainedandencouragedtoswitchtodripirrigation.
• TheWorldBank’sWaterScarceCitiesInitiativeseekstopromoteanintegratedapproach.Itaimsatmanagingwaterresourcesandservicedeliveryinwater-scarcecitiesasthebasisforbuildingclimatechangeresilience.
• Indigenouswaterharvestingsystemsneedtoberevivedandprotectedatthelocallevel.
• TheimplementationoftheUnitedNationsConventiontoCombatDesertification(UNCCD)hasasignificantroleinthesustainableavailabilityofclean,adequateandsafewater.Eg:-InnerMangolia(kubuqi)modelofcombatingdesertificationcanbeimplemented
Related information and data
• 18%oftheworld’spopulationwhichresidesinIndiaonlyhasaccessto4%ofusablewatersources.
• Indiaissufferingfrom‘theworstwatercrisis’initshistorywithabout60crorepeoplefacinghightoextremewaterstressand
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abouttwolakhpeopledyingeveryyearduetoinadequateaccesstosafewater,NITIAayogsaid
• CapeTowninSouthAfricawasfacingtheprospectofallitstapsrunningdrybyJune-Julythisyear.Bengaluruisrankedsecondinthelistof11globalcitieswhichmightfacethethreatofrunningoutofdrinkingwater.
• AccordingtoaforecastbytheAsianDevelopmentBank,Indiawillhaveawaterdeficitof50%by2030.
Institutions and modalities in its working
• InternationalConferenceonSustainableWaterManagementundertheaegisofNationalHydrologyProject,UnionMinistryofWaterResources,RiverDevelopmentandGangaRejuvenationisbeingorganisedbyBhakraBeasManagementBoard(BBMB)inMohali.Itaimstofostertheparticipationofanddialoguebetweenvariousstakeholders,includinggovernments,thescientificandacademiccommunities,soastopromotesustainablepoliciesforwatermanagement
• CompositeWaterManagementIndex(CWMI)bytheNITIAayograisesthreemainissuesrelatedtodata:limitedcoverage,unreliabledataandlimitedcoordinationandsharing.
• UNESCO’sWorldWaterDevelopmentReportstatesthatIndiaisthelargestextractorofgroundwaterintheworld
• CouncilofScientificandIndustrialResearch,IndianInstituteofToxicologyResearch(CSIR-IITR)hasdevelopedaDrinkingWaterDisinfectionSystemwithtradenameOneerTM.Itisusefulforcontinuoustreatmentofwaterandeliminatesalldiseasecausingpathogenssuchasvirus,bacteria,fungi,protozoaandcyst.
E. Schemes
• NationalWaterMission:GovernmentofIndiahasestablishedNationalWaterMissionasoneoftheeightNationalMissionsundertheNationalActionPlanonClimateChange(NAPCC).Thegoalsare:-
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» Comprehensivewaterdatabaseinpublicdomainandassessmentoftheimpactofclimatechangeonwaterresource,
» Promotionofcitizenandstateactionsforwaterconservation,augmentationandpreservation,
» Focusedattentiontovulnerableareasincludingover-exploitedareas,
» Increasingwateruseefficiencyby20%,and
» Promotionofbasinlevelintegratedwaterresourcesmanagement.
• AtalBhujalYojana:Theobjectiveofschemeistorechargegroundwaterandcreatesufficientwaterstorageforagriculturalpurposes.Italsofocusonrevivalofsurfacewaterbodiessothatgroundwaterlevelcanbeincreased,especiallyintheruralareas.Itwillgiveemphasistorecharginggroundwatersourcesandensureefficientuseofwaterbyinvolvingpeopleatlocallevel.
• UnionMinistryofWaterResourceshasinstitutedNationalWaterAwardswithobjectivetoencourageallstakeholderstomanagetheirwaterresourcesefficientlyandcreatewaterconsciousnessinthecountry.
• JalKrantiAbhiyan,whichaimsatturningonewaterscarcevillageineachdistrictofthecountryintowatersurplusvillagewaterthroughaholisticandintegratedapproachbyadoptingconservationandmanagementtechniques
• JalSwavalambanAbhiyan(JSA):ItisaprogrammeofRajasthanGovernment.IthasturnedouttobeasuccessinPratapgarhdistrict.Inthedistrictthegroundwatertablehasincreased,greenagriculturalfieldshaveexpandedandnotankerswithdrinkingwaterhadtobesenttoasmanyas94villagesthisyearis
National Water Commission
• Inoneofthemostsignificantreformsinthewatersectorinalongtime,thegovernmentisintheprocessoforderinga
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completerestructuringoftheorganizationsresponsibleforregulatingtheuseofwaterresources,withtheobjectiveofbringingingreaterefficiency,betterplanningandincreasedemphasisonconservationofwater.
» CentralWaterCommission(CWC):Since1945theCWChasbeentaskedwithmanagingsurfacewateranditsassociatedstructuressuchasdamsandbarrages,overseesirrigationprojects,floodmanagementanddrinkingwatersupply.
» CentralGroundWaterBoard(CGWB):ontheotherhand,islargelyconcernedwiththequalityofgroundwater.
• AcommitteeunderMihirShah,aformermemberofthethenPlanningCommissionofIndia,setupbytheMinistryofWaterResourceshadrecommendedthataNationalWaterCommission(NWC)besetup,whichwillsubsumetheCentralWaterCommission&theCentralGroundWaterBoard.ThekeyfunctionsoftheNWCwillinclude:
» incentivisestategovernmentstoimplementirrigationprojectsinreformmode,
» leadthenationalaquifermappingandgroundwatermanagementprogram,
» developalocation-specificprogramforrejuvenationofrivers,etc.
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G20 SUMMIT AND ITS CONTEMPORARY RELEVANCE
Context
• IndiawillhostG20SummitIn2022,whenitcelebratesits75thyearofIndependence.ItwasannouncedbyPrimeMinisterNarendraModiduringongoingG20meetofinternationalgroupinginBuenosAires,capitalofArgentina.
• ThiscomesafterItalyacceptedIndia’sformalrequesttohostthissummitin2021asearlieritwasgoingtohostitin2022.
• Thegroupaccountsfor85percentofworldGDP.
• Itaccountsfortwo-thirdsofworldpopulation.
• IthasplayedkeyroleinsteeringtheworldoutofGlobaleconomiccrisisin2008-2010.
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Structure & functions
• TheG20(Groupof20)isaninternationalforumwhichincludes19oftheworld’slargesteconomiesandtheEuropeanUnion.
• ItcameintheaftermathofAsianfinancialcrisisof1999andisaforumofgovernmentsandcentralbankgovernorsfrom20majoreconomies.
• Itspurposeistostudy,review,andpromotehigh-leveldiscussionofpolicyissuespertainingtothepromotionofinternationalfinancialstability
• Aimistodiscusspolicypertainingtothepromotionofinternationalfinancialstability
• TheG20operateswithoutapermanentsecretariatorstaff.
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• Thegroup’schairrotatesannuallyamongthemembersandisselectedfromadifferentregionalgroupingofcountries.
Objectives of G20
• Policycoordinationamongitsmembersinordertoachieveglobaleconomicstabilityandsustainablegrowth;
• Topromotefinancialregulationsthatreducerisksandpreventfuturefinancialcrises;
• Tocreateanewinternationalfinancialarchitecture.
• Inclusivedecisionmakingformatthatwouldbringinthelargestdevelopingeconomiesasequalpartners
Achievements so far
• reshapingthegovernanceofglobalfinancebyimplementingmacro-prudentialpolicies,
• Developingstrictrulesonthe“toobigtofail”problem
• IncreasingthelendingcapacityoftheInternationalMonetaryFund(IMF)
• Collectingricherinformationontheshadowbankingsystem.
• G20playedacrucialroleinstrengtheningtheinternationalfinancialregulatorysystem,includingbettercoordinationacrosscountries.
• Itisaninvaluableforum,allowingleadersoftheworld’smajoreconomiestoworktogethertoliftgrowthinmutually-supportiveways
• Ithelpstoreformtheglobalfinancialsystemandtopreventfuturecrisesbyenablingthecountriestoaligntheirdomesticpoliciestothedecisionstakenbythegroup.
India’s role in it
• Indiaiscallingforstructuralreformstopusheconomicgrowth
• Indiaispushingforcheckingtaxevasiontofightcorruption,chokingterrorfunds,cuttingcostofremittancesandmarket
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accessforkeydrugs.
• IntheHangzhouSummit,ModiurgedG-20nationstoeliminatesafehavensforeconomicoffenders,unconditionallyextraditemoneylaunderersandendexcessivebankingsecrecy.
• Indiaisexpectedtoplayabalancingroleinthetimesoftradewars
• Baseerosionandprofitshifting(BEPS)isofutmostsignificanceforIndia,duetotheirrelianceoncorporatetax,particularlyfrommultinationalenterprises.
Lacunae in its functioning
• Nopermanentsecretariat:informalstructureoftheG20,witharotatingchairandnopermanentsecretariat,meansthatagendasaredeterminedeachyearbythechairandsocanswingwidely,andformalmechanismstomonitorfollow-throughoncountries’publiccommitmentsareweak
• Insufficientlylegitimate:G20excludesmorethanfour-fifthsoftheworld’scountries,causingsomecritics(andexcludedcountries)todenounceitasunrepresentativeandthereforeinsufficientlylegitimate.Includingenoughoftherightactorsatthetableisaprerequisiteforeffectiveglobalcoordination,thesesamecriticscontendthatthislackofrepresentativelegitimacyalsounderminestheG20’seffectiveness.
• Bias:TheG20iscomposedof20largeandimportanteconomies.Thiscreatesasituationinwhichsmallcountrieshavetofollowtheirbigbrothers,inordertosurvive.
• Failedtoliveuptotheexpectations:Financeministersandheadsofstatenowcometothetablewiththeirhandstied,theirpositionsdeterminedinadvancebytheirgovernmentsandaformalscriptthatprecludesmeaningfulandcreativecompromises.
• lessefficient:Meetingshavebecometalkfestsandphotoopportunities.Thewillingnesstocometogetherinthehostileenvironmentoflate2008andearly2009hasentirelydissipated.TheG20agendautterlyfailstobreakwiththetired,
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brokenpoliciesofthefreemarket.
• lackofIMFreformshavebeendisappointingaspect.
• differencesofopinionindiscussions,especiallyduetodifferentdomesticinterests.
What needs to be done?
• Negotiatingashortsetofprinciples:AG20charterwouldverybrieflysummarizethescopeoftheG20anditsmainprinciplesofoperations.
• Settingupasecretariat:Asecretariatmeanstheinevitablebureaucratizationoftheprocess.However,averylightonewouldbringconsistencyovertheyears.Inordertoavoidexcessiveinertia,theprinciplethatnooneworkingforthesecretariatcanstayforalongertermthan,say,4years,couldbeadopted.
• Wideningtheintervalsbetweensummits:ThesummitsgiveanimpulsetotheG20buttheyalsohijackdiscussionsonglobalissuesinfavourofmoretraditionaldiplomacyandcompetitionformediaattention.Anideawouldbetoallowforlongerintervalsbetweensummits,saytwotothreeyears.
• Keepingsummitsinasinglelocation:Summitstendtoturnintobeautycontestsbetweenpresidencies.Onepossibilitytoavoidthisistokeepsummitsinasinglelocation.GiventheriseofAsia,itwouldbelogicalthatthislocationbeinAsia.
• Providinganarchitecturebasedontermedpresidents:managementoftheG20bythesuccessivepresidenciesisleadingtoagendaoverstretching.Thepresidencyforatermof3yearsisidealforareasonablefollowthroughonvariousproposals.
• Accumulatedlayersofsidemeetingscontributetotheoverallbloatingoftheprocess.Simplifyingtheprocedureoftheforumisanimportanttask.
• Proliferationofinitiativeswhicharereferredtointheofficialcommuniquéswithlittleimpactneedtoberationalized.
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Practice question
1. Indiahopestoplayaconstructiveroletohelpbuildamiddlegroundconsensusamongtheworld’smajoreconomies.DoyouthinktheG20isaviableplatformforrealisingsuchambitions?(200words)
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RURAL ELECTRIFICATION
Context
• On28thofApril2018,PrimeMinisterNarendraModihadannouncedthatallvillagesinthecountryhavenowaccesstoelectricity.
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Rural electrification in India
• Ruralelectrificationisconsideredtobethebackboneoftheruraleconomy.
• TheelectricitygenerationcapacityinIndiaisthefifthlargestintheworld.
• Indiaisthesixthlargestconsumerofelectricityandaccountsfor3.4percentoftheglobalenergyconsumption.
• Indiahasfourcroreun-electrifiedruralhouseholds.
• Theyear2022,hasbeenearmarkedforachievingthetargetof“24x7PowerforAll”.
• Achievingthistargetwouldmeanelectrifyingmorethan7lakhhouseholdseverymonth!
According to Central Electricity Authority (CEA), as per the new definition, a village would be declared as electrified, if:
• BasicinfrastructuresuchasDistributionTransformerandDistributionlinesareprovidedintheinhabitedlocalityaswellastheDalitBastihamletwhereitexists.
• ElectricityisprovidedtopublicplaceslikeSchools,PanchayatOffice,HealthCentres,Dispensaries,Communitycentresetc.
• Thenumberofhouseholdselectrifiedshouldbeatleast10%ofthetotalnumberofhouseholdsinthevillage
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Rural electrification has five major facets
• SettingupofRuralElectricityInfrastructure
• Providingconnectivitytohouseholds
• Adequatesupplyofdesiredqualityofpower
• Supplyofelectricityataffordablerates
• Providingclean,environmentallybenignandsustainablepowerinefficientway.
Rural Electrification provides for:
• Increaseinagricultureyield.
• BusinessofSmallandhouseholdenterprisesshallgrowresultingintonewavenuesforemployment.
• ImprovementinHealth,Education,Banking(ATM)services.
• Improvementinaccessibilitytoradio,telephone,television,internetandmobile.
• Bettermentinsocialsecurityduetoavailabilityofelectricity.
• Accessibilityofelectricitytoschools,panchayats,hospitalsandpolicestations.
• Ruralareasshallgetincreasedopportunitiesforcomprehensivedevelopment.
Energy source and Percentage Share in installed capacity
• Thermal–64.75%
• Nuclear–2.78%
• Hydro–21.73%
• Otherrenewableenergysources–10.73%
Related Policies
NationalElectricityPolicy2005
• Incompliancewithsection3oftheElectricityAct2003theCentralGovernmentnotifiedtheNationalElectricityPolicy.
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• TheNationalElectricityPolicyaimsatlayingguidelinesforaccelerateddevelopmentofthepowersector,providingsupplyofelectricitytoallareasandprotectinginterestsofconsumersandotherstakeholderskeepinginviewavailabilityofenergyresources,technologyavailabletoexploittheseresources,economicsofgenerationusingdifferentresources,andenergysecurityissues.
• TheNationalElectricityPolicywasevolvedinconsultationwithandconsideringviewsoftheStateGovernments,CentralElectricityAuthority(CEA),CentralElectricityRegulatoryCommission(CERC)andotherstakeholders.
The aims and objectives of the policy are as follows
• AccesstoElectricity-Availableforallhouseholdsinnextfiveyears
• AvailabilityofPower-Demandtobefullymetby2012.Energyandpeakingshortagestobeovercomeandadequatespinningreservetobeavailable.
• SupplyofReliableandQualityPowerofspecifiedstandardsinanefficientmannerandatreasonablerates.Percapitaavailabilityofelectricitytobeincreasedtoover1000unitsby2012.
• Minimumlifelineconsumptionof1unit/household/dayasameritgoodbyyear2012.
• FinancialTurnaroundandCommercialViabilityofElectricitySector.
• Protectionofconsumers’interests.
National Rural Electrification Policy, 2006
• Goalsincludeprovisionofaccesstoelectricitytoallhouseholdsbytheyear2009,qualityandreliablepowersupplyatreasonablerates,andminimumlifelineconsumptionof1unit/household/dayasameritgoodbyyear2012.
• Forvillages/habitationswheregridconnectivitywouldnotbefeasibleornotcosteffective,off-gridsolutionsbasedon
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stand-alonesystemsmaybetakenupforsupplyofelectricity.Wherethesealsoarenotfeasibleandifonlyalternativeistouseisolatedlightingtechnologieslikesolarphotovoltaic,thesemaybeadopted.However,suchremotevillagesmaynotbedesignatedaselectrified.
• Stategovernmentshould,within6months,prepareandnotifyaruralelectrificationplanwhichshouldmapanddetailtheelectrificationdeliverymechanism.Theplanmaybelinkedtoandintegratedwithdistrictdevelopmentplans.Theplanshouldalsobeintimatedtotheappropriatecommission.
• Grampanchayatshallissuethefirstcertificateatthetimeofthevillagebecomingeligiblefordeclarationaselectrified.Subsequently,theGramPanchayatshallcertifyandconfirmtheelectrifiedstatusofthevillageason31stMarcheachyear.
• Thestategovernmentshouldsetupacommitteeatthedistrictlevelwithin3months,underthechairmanshipofchairpersonoftheZillaPanchayatandwithrepresentationsfromdistrictlevelagencies,consumerassociations,andimportantstakeholderswithadequaterepresentationofwomen.
• Thedistrictcommitteewouldcoordinateandreviewtheextensionofelectrificationinthedistrictandconsumersatisfaction,etc.
• PanchayatRajinstitutionswouldhaveasupervisory/advisoryrole.
• Institutionalarrangementsforbackupservicesandtechnicalsupporttosystemsbasedonnon-conventionalsourcesofenergywillhavetobecreatedbythestategovernment.
National policy for renewable energy-based micro and mini grids
• IntroducedbyMinistryofNewandRenewableEnergy
• Ittargetssettingupofatleast10,000projectswithaminimumcapacityof500MWby2021
• Thedraftpolicyproposestoextendenergyservicesbeyond
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lighting.
Related Schemes
DeenDayalUpadhyayaGramJyotiYojana(DDUGJY)
• Launchedin2015.
• TheDDUGJYisoneoftheflagshipprogrammesoftheMinistryofPower.
• Theearlierschemeforruralelectrificationviz.RajivGandhiGrameenVidyutikaranYojana(RGGVY)hasbeensubsumedinDeenDayalUpadhyayaGramJyotiYojana.
SalientfeaturesofDeenDayalUpadhyayaGramJyotiYojana
• Toprovideelectrificationtoallvillages.Itwillfacilitate24×7supplyofpower.
• Feederseparationtoensuresufficientpowertofarmersandregularsupplytootherconsumers.
• ImprovementofSub-transmissionanddistributionnetworktoimprovethequalityandreliabilityofthesupply.
• Meteringatalllevels(inputpoints,feedersanddistributiontransformers.
• Microgridandoffgriddistributionnetwork&Ruralelectrification-alreadysanctionedprojectsunderRGGVYtobecompleted.
RajivGandhiGrameenVidyutikaranYojana
• RajivGandhiGrameenVidyutikaranYojana(RGGVY)waslaunchedinApril2005bymergingallongoingschemes.TheGovernmentisimplementingDecentralisedDistributedGeneration(DDG)underRajivGandhiGrameenVidyutikaranYojana(RGGVY)forelectrificationofvillageswheregridconnectivityiseithernotfeasibleornotcosteffective.
• InXIIPlanperiod,DDGhasalsobeenextendedtothegridconnectedareawheresupplyofelectricityislessthan6hoursaday.DecentralizedDistributedGeneration(DDG)canbefromconventionalorrenewablesourcessuchasBiomass,
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Biofuels,Biogas,Minihydro,Solaretc.
• Undertheprogramme,90%grantisprovidedbyGovt.ofIndiaand10%asloanbyRuralElectrificationCorporation(REC)totheStateGovernments.RuralElectrificationCorporation(REC)isthenodalagencyfortheprogramme.
• Atpresent,RajivGandhiGrameenVidyutikaranYojana(RGGVY)hasbeensubsumedintheDeenDayalUpadhyayaGramJyotiYojana(DDUGJY)asitsruralelectrificationcomponent.
AimsofRGGVY
• Electrifyingallvillagesandhabitationsaspernewdefinition
• Providingaccesstoelectricitytoallruralhouseholds
• ProvidingelectricityConnectiontoBelowPovertyLine(BPL)familiesfreeofcharge
InfrastructureunderRGGVY
• RuralElectricityDistributionBackbone(REDB)with33/11KV(or66/11KV)sub-stationofadequatecapacityinblockswherethesedonotexist.
• VillageElectrificationInfrastructure(VEI)withprovisionofdistributiontransformerofappropriatecapacityinvillages/habitations.
• DecentralizedDistributedGeneration(DDG)Systemsbasedonconventional&non-conventionalenergysourceswheregridsupplyisnotfeasibleorcost-effective.
ProgressmadeunderRGGVY
• Mostpeoplereportedthattheyhavebenefitedfromelectricityconnectionssincetheyarenowabletousebulbs,fan,TVaswellasmobilephones.InUP,asignificantpercentofthosesurveyed(43%)reportedtohavestartedusingmobilephonesafterelectrificationsinceitbecamepossibletochargethemobilesets.InBihar,themostimportantuseofelectricitybythebeneficiaryhouseholds,asperceivedbythem,isforillumination(94.9%),followedbysecurity(89.9%),
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communicationthroughcellularphones(42.1%),accessinginformationandentertainment(52.1%)andcomfortsbyrunningfans(18.4%).
• InMadhyaPradesh,85%ofthevillagers,inparticular,womenandchildrenfeelmoresecureandprotectedagainstwildanimals,venomousreptilesandrobbersduetoelectrifiedhouseholdsandstreetlights.
• 75%ofwomensurveyedinRajasthanstatedthattheyareabletoworkinthefieldsafterelectricityreachedtheirhomes.
• StudentsinallstatesreportedtohavebenefitedagreatdealasafterelectrificationunderRGGVY,theyarenowabletostudyforlongerhoursandalsosavemoney&timewhichtheyhadtospendonkerosenelamp.Theyalsofeelmorecomfortableduringsummerdaysduetothefansintheclass.InAndhraPradesh,88%ofbeneficiariesreportedpositiveimpactoneducation.InUP,nearly64%reportedusingelectricityforeducation,56%InMadhyaPradeshand48%InBihar.
• InJ&K,mostpeoplefeelthatsecurity&standardoflifehasincreasedafterRGGVYimplementation.Villagersareabletogetthetreatmentinthenight.Insomeofthevillages,itwasfoundthatthevillagersuseelectricalappliancesforcropprocessing.ManyshopswerealsofoundtobeelectrifiedinthevillagesthroughRGGVYline.
RemoteVillageElectrificationProgramme
• TheMinistryofNewandRenewableEnergy,GovernmentofIndiaisimplementingthisprogrammeforprovidingfinancialsupportforelectrificationofthoseremoteunelectrifiedcensusvillagesandunelectrifiedhamletsofelectrifiedcensusvillageswheregrid-extensioniseithernotfeasibleornotcosteffectiveandarenotcoveredunderDDUGJY.
• Suchvillagesareprovidedbasicfacilitiesforelectricity/lightingthroughvariousrenewableenergysources.
• SmallHydroPowerGenerationsystems,biomassgasification-basedelectricitygenerationsystems,solarphotovoltaic
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powerplants,etc.,indistributedpowergenerationmodemaybeuseddependingupontheavailabilityofresourcesforgenerationofrequiredelectricity.
VillageEnergySecurityprogramme
• Theobjectiveoftheprojectistogobeyondelectrificationbyaddressingthetotalenergyrequirementsforcooking,electricity,andmotiveprovideaccesstoelectricitythroughrenewablestohouseholdsinremotevillagesandhamlets,whicharenotlikelytogetcoveredthroughgridextension.
• Theprojectsonvillageenergysecurityaretakenupwithaviewtodemonstratethetechno-economicparametersofthevillageenergysecurityplan,provideoperationalexperience,mobilizelocalcommunitiesandfirmuptheinstitutionalarrangements.
• Areaofcoverage:Theprojectswouldbeundertakeninunelectrifiedremotevillagesandhamletsthatarenotlikelytobeelectrifiedthroughconventionalmeans.
• GuidelinesforimplementationoftheProjects:TheprojectswouldbeundertakenbythePanchayatsdulyfacilitatedbyimplementingagenciessuchasDRDAs,forestrydepartments,NGOs,entrepreneurs,franchises,co-operatives,etc.
Preparationofproposalsfortheprojectsandidentificationofvillages/hamlets
Thevillage/hamletidentifiedshould
• Beremoteandmayincludeatribalorforest-fringevillage/hamlet.
• Haveadequateavailabilityoffallow,commonoruncultivatednon-grazinglandforraisingplantations
• Haveacohesiveandprogressivesocialstructure
• Haveaminimumof25andmaximumof200households
• Shouldbeidentifiedinconsultationwithforest,tribalandruraldevelopmentdepartments/agencies.
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Preparationofapreliminaryproposal
• Afterselectionofthevillage/hamlet,apreliminaryproposalwouldhavetobeprepared,gotdulyendorsedbytheconcernedStateNodalAgencyandforwardedtotheMinistryforconsiderationof`inprinciple’approval.
PradhanMantriSahajBijliHarGharYojana–“Saubhagya”
• Launchedin2017.
• Itwillprovidetherequiredfinancialassistanceforstrengtheningandimprovementofinfrastructureinthepowersector.
• PradhanMantriSahajBijliHarGharYojana,orSaubhagya,toensureelectrificationofallwillinghouseholdsinthecountryinruralaswellasurbanareas.
SalientfeaturesofPradhanMantriSahajBijliHarGharYojana–“Saubhagya”
• Toensureelectrificationofallwillinghouseholdsinthecountryinruralaswellasurbanareas.
• ThebeneficiariesforfreeelectricityconnectionswouldbeidentifiedusingSocioEconomicandCasteCensus(SECC)2011data.
• Thesolarpowerpacksof200to300WPwithbatterybankforun-electrifiedhouseholdslocatedinremoteandinaccessibleareas,comprisesofFiveLEDlights,OneDCfan,OneDCpowerplug.ItalsoincludestheRepairandMaintenance(R&M)for5years.
TheoutcomeoftheSchemeisasfollows:
• EnvironmentalupgradationbysubstitutionofKeroseneforlightingpurposes
• Improvementeducationservices
• Betterhealthservices
• Enhancedconnectivitythroughradio,television,mobiles,etc.
• Increasedeconomicactivitiesandjobs
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• Improvedqualityoflifeespeciallyforwomen
Issues
• Definitionissue:Only1in10householdsneedstohaveelectricitysupplyforthevillagetobeofficiallyelectrified.Accordingto2011census,only55.3%ofallruralhouseholdshadaccesstoelectricity
• Qualityissue:Around67%ofelectrifiedvillagessufferfromerraticandunreliablepowersupply.Lowvoltagewaswidelyreported.
» Manyruralconsumersweredispleasedwiththepoorpowersupplyandcitedreliability,quality,duration,andaffordabilityaskeyconcerns.
» Thedistributiontransformerscateringtovillageshadthecapacitytosupporttheloadofonly10%ofthehouseholdsandthustheinstancesofoverloadingandtransformerbreakdownsaresignificant.
» Only7%–10%rurallocationsreceivesupplyduringthefulleveninghours(5pmto11pm).
» InBihar,JharkhandandUP,morethanone-thirdofelectrifiedhouseholdsreceivedlessthanfourhoursofsupplyduringthedayandvoltagefluctuationsarealsocommon.
• Meteringissue:Morethan28%electrifiedvillagesreportedoverchargingandad-hocbilling.One-timeconnectionchargesalsodifferedfromvillagetovillage.
» Inruralareas,evidencesofsupplybeinggivenwithoutpropermetersormetersnotbeingreadcorrectly/andbillsbeingissuedwithoutpropermeterreadingsarecommonplace.
» Further,therearealsoinstancesofbillingdelays,particularlyinissuingthefirstbillafterconnection.Thisincreasesthelikelihoodofpaymentdefaultsleadingtodisconnectionofsupply.
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• Accountabilityissue:52%villagesfaceissueswithcontractors,repairpersonsandpowerdistributioncompanies.Eithernooneturnsuptoaddresscomplaintsorrepairsaredoneafterpayingbribesorresidentsgetrepairsdoneattheirowncost.
• Inaccessibility:Geographicalterrainisposingaproblemtogridexpansioninatleast13%ofallvillages.
• NPAissue:Banksdonotlendtomini-griddevelopersduetopoorrecoveryofloans
• Kerosenedependence:Despitehavingelectricityconnection.
• Affordabilityissue:.Amongthemostenergydeprivedstates,surveyshavefoundthatwhilemostvillagesandmorethantwo-thirdsofthehouseholdshadelectricityconnections,lessthan40percenthadmeaningfulaccesstoelectricity.
» FinancialIssues:Highupfrontcostisthemajorreasonbehindconsumerdisinterestintakingupandsustaining(bytimelypayingofbills)anelectricityconnection.
• Implementationandoperationalroadblocks:Whilethereisprogressingivingconnections,networkinvestmentsforruralelectrificationhavebeenslowerthanplanned.Lackoftimelynetworkinvestmentsjeopardisestheprovisionofreliable,affordablepowersupply.
» Operationalissues:InthefirstphaseofRGGVY,ruralfranchiseeswereexpectedtomanagedistributionoperationsinnewlyelectrifiedareas.However,mostofthemarenotoperationalandDDUGJYdoesnotenvisagesuchfranchisees.
Way forward
AccesstoelectricityisacornerstonetothedevelopmentofandessentialforbetterqualityoflifeforruralIndia.GovernmentneedtooutlineaholisticapproachtoRuralElectrification.
• MeteringanddatamanagementusingICT:Useinformationtechnologytomonitormeteringatfeederanddistributiontransformerlevelstoallowproperauditingofpowersupply.
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» ParameterssuchasDTfailurerate,hoursofsupply(especiallyduringeveninghours),meteringandbillinginformation,informationonconsumerdisconnections,newconnectionsforentrepreneurialuse,electrificationofruralinstitutions.,couldbetrackedandreportedonthenationaldashboardsonamonthlybasisforeverydistrictordivision.
» Withusagetechnologytomonitorhoursofsupply,thedurationofsupplyandinterruptionscanberecordedwithoutmanualinterventionandtrackedatadisaggregatedlevel.ThisinformationcanbeusedbySERCsandconsumerstomakeDISCOMsmoreaccountableforpowersupply.
• Expansion:
» Thefirststeptowardsthetargetwouldbetoprovidenewconnectionstoun-electrifiedhouseholdsandlegalisingexistingillegalconnections.
» Improvinguptakeofconnectionsbyaddressingfinancialhurdlesandawarenessbarriersistobetakenup.
• Financialconstraint:WhileBPLhouseholdsalreadyreceiveafreeconnectionundertheDeenDayalUpadhyayaGramJyotiYojana(DDUGJY),APLfamiliescouldbegivenalow-costEMIbasedconnection.
• Awareness:Empoweringandencouraginglocalauthoritiestoorganiseawarenesscampaignsandenrolmentcampsinhabitationsexhibitinglimitedawarenessarealsoessential.
• Bestpractice:Biharhascurrentlyevolvedagoodmodelbothawarenesscampaigns&subsidyforAPLfamilies.
• Supplysituation:Improvingthesupplysituationforalreadyelectrifiedhouseholdsistobedone.
• DISCOMreforms:DISCOMsneedtobetterplanfortheirinfrastructure,factoringinnear-termincreaseindemand,strengtheningmaintenance,andimprovingsupply.
» Tobettermanagetheirservices,discomscouldexplore
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afranchiseemodelbycollaboratingwithlocalmini-gridoperators.
• InnovativeBusiness:Asmanagingruralcustomers,particularlyinremoteareas,isachallengeinnovativebusinessmodelsneedtobeexplored.
» Severalideaslikeprepaidmeteringanddirectbenefittransfer(DBT)arebeingproposedtohandlethemetering,billingandsubsidyissues.
» ConsideringthelimitedfinancialandITliteracyofruralconsumers,aswellasthechallengesininternetreliability,itisbettertotryoutpilotsbeforerollingoutsuchsolutionsonalargescale.
• Maintenanceandoperationssuchasreadingmeters,generatingbills,andcollectingrevenues,arekeyconcerns.
» theruraldistributionnetworksrequireinvestmentstotideovertheoperationandmaintenancechallengesthatleadtofrequentfailuresofDTsandlinefaults,requiringlongrepairtimes.
• Distributedgeneration:Modelslikerooftopsolarpowercouldcomplementcentralisedgridelectricitytoensuresustaineduseofelectricityfortheentireruraleconomy.
• Accountability:
» ThereisaneedtoholdDISCOMsaccountableformonitoringofsupplyqualityandoperationandmaintenanceeffortsinruralareasinordertoensureuninterruptedsupply.
» ThefinancialhealthandoperationalefficiencyofDISCOMsissubjecttotremendousscrutinyunderbailoutschemeslikeUDAY.ThereneedstobesimilaremphasisandpoliticaldiscourseonsupplyandservicequalityissuestoholdDISCOMsaccountableforthesame.
• Tariffchanges:
» Inmanystates,smallindustrialandcommercialconsumerspaytariffratescomparabletolargeindustrialunitsand
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commercialcomplexes.Thereneedstobeinnovationintariffdesigntoencouragehome-basedorsmallenterprisesinnewlyelectrifiedvillages
» Currently,supplyofoneunitofpowercoststheDISCOMsaboutRs.7andthiscostwillmostlikelyincreaseatarateofmorethan4%perunitinthecomingyears.Assuchcostswillbeunaffordableformanyconsumers,andwiththecontributionofcross-subsidiesreducing,substantialsubsidysupportwillbenecessary.
• Research:
» Evenafterthetargetsofconnectionsaremet,thereisaneedforanationalinstitution,withruralelectrificationasitskeyfocus.ItsmandateneednotbetooperatetheruraldistributionbusinessesbuttoprovideknowledgeandfinancialsupporttoDISCOMsformaintainingandstrengtheningtheruralnetworkandensuringsupply.
• SuccessmainlydependsoncurbingDISCOMlossesandensuringconsumerhonesty.Itishopedthatelectrificationwouldleadtoimprovedconsumersatisfaction,aselectricitytrulybecomesanenablerofprosperityinruralIndia.Concertedeffortstomonitorsupplyhoursforrural,remoteandnewlyelectrifiedhouseholdsareneeded.
Practice questions
1. India’seffortstoachieve100%ruralhouseholdelectrificationareyettoberealised.Analyse(250words)
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FAKE NEWS AND VOTING BEHAVIOR
Context
• OutgoingChiefElectionCommissionerO.P.Rawathassaidthatfakenewsaffectsvotingbehaviourinabigway.Illiteracyandignoranceofcitizensmakethemeasilyfallpreytofakenews.
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Incidents
• OnTwitter,researchersdiscoveredevidenceofpoliticalpartiesusingbotstoboosttheirfollowercounts,ortoretweet,like,orsharecontentthatsupportedtheircampaigns.Automatedaccountsallowyoutoreachmoreaudiences,andifyoucangeneratetrends,youcangeneratetruth.
• TherecentTwitterpurgeoffakeaccounts,wherePrimeMinisterNarendraModilost300,000followersandCongresschiefRahulGandhilost17,000,speaksofhowwidespreadbotactivityisamongIndia’spoliticalcandidates.
• Evenduringsomestateelectionsthisyear,WhatsAppreportedlyhousedrampantmisinformationfrommultiplepoliticalactors.Withover200millionactiveusers,WhatsAppisthemostwidely-usedmessagingappinIndia.
Current mechanism
• RightnowtheonlymechanismisSection126andECinstructionsonpaidnews.Thesection126prohibitsdisplayinganyelectionmatterbymeans,interalia,oftelevisionorsimilarapparatus,duringtheperiodof48hoursbeforethehourfixedforconclusionofpollinaconstituency”.
What is fake news?
• Fakenewsisatypeofyellowjournalismthatconsistsof
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deliberatemisinformationorhoaxesspreadviathetraditionalprint,broadcastingnewsmedia,orviaInternet-basedsocialmedia.Fakenewsiswrittenandpublishedwiththeintenttomisleadinordertogainfinanciallyorpolitically,oftenwithsensationalist,exaggerated,orpatentlyfalseheadlinesthatgrabattention.
The main driving force behind fake news remains
• Gettingeasyviewershipthroughsensationalnewse.g.dubbingforeignprisonersasspiesorterroristswithoutanyproof
• Directedtowardsaparticularorganizationorpersonwithanintentiontoeitherglorifyitortobringmalice.Eg.anewschannelwasestablishedtodefendtheaccusedinJessicaLalmurdercase.
Dangers of fake news
• Political:Swayingorpolarisingpublicopinion.ExampleRecentAmericanelection,UPelectionswherecertainfactsarequotedoutofcontext/partially.Significantimpactonthenatureofpolity.
» Democracyinperilasinformedvotingdecisionisaffectedleadingtowrongleaderscomingtopower.
» Needforlevelplayingfieldforcandidatestopreventanyadverseimpact.
• Religious:Promotingreligiousideologies.GlorifyingonereligionwhiledespisingothersEx.RightwingviolencemetedoutbyGaurakshaksleadstoreligiouspolarisationandcommunalunrests.
• Criminal:Sensationalisingcrimesbyblowingthemoutofproportion.MisleadspeopleratherthanmakingthemawareandInstillsirrationalfears.
• Financial:Fakenewshasalsobeenusedtodupegulliblepeoplefinancially.Thereachofnewshasgivenchitfundschemesanaltogethernewarenaaswellashasintroducedtheconceptofonlinefraudthroughspammails.
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• Nationalintegration:Ithampersspiritofcommonbrotherhoodandraisesintolerance.E.g.2012massexodusofNorth-EasternpeoplefromBangaloreonfalseonlinethreats.
• Image:Overthetimeitshapesthethinkingofsocietyatlarge.PortrayalofIndiaasanunsafedestinationforwomenbyinternationalmediahascreatedafalseimageofanation.
What is needed?
• Independentpress:Independent,trustedandeffectivepressregulation.Regulationtoensureopinionpollsandexitpollsshowthetruthbasedonrationalcriteriaputinpublicdomain.
• Socialmediautility:Mainstreammediamustusesocialmediatoolsintensivelyinordertodefendthetruth,presentthecorrectinformationandbalanceopinions.
• Curbmediaownership:Weneedanopendebateontheimpactofmediaconcentrationonourdemocracyandwiderculture.Thereshouldbeclearlimitsonmediaownershipsothatpowerfulproprietorswithvestedinterestsarenotallowedtodominatethenewsagenda.
• Definefakenewslegally.Heavypunitivemeasuresforwhosoeverviolatesthesaiddefinition.
• Thereshouldbegrievanceredressalmechanismsandarbitrationspacestoresolveissues.
• Digitalmedialiteracyamongpeopletoincreasescrutinyandfeedbacksofthecontent.
• Technicalsolutionsthatassessthecredibilityofinformationcirculatingonlinearealsoneeded.Eg:FactcheckingorganisationslikeFactlyandWebgoof.
• ProactiveEC:InternetmajorGoogleandsocialmediagiantsTwitterandFacebookhaveassuredtheElectionCommissionthattheywillnotallowtheirplatformstobeusedforanythingwhichaffectsthepurityofpollsduringcampaignperiod.
» Thecompanieshavealsoassuredthepollwatchdogthatpoliticaladvertisementswillbeflagged,including
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theamountspent,sothatexpenditurecanalsobeaccountedforduringcampaignperiod,theChiefElectionCommissionersaid.
» GooglewillestablishasystemthatwillallowittosharewiththeECdetailsabouttheexpenditureincurredonitsplatforms.
• Civilsociety:Vigilancetoensuremedia–bothtraditionalandsocialmediaarenotpropagatingfakenews.Eg)NGOslikeADR.
• NewguidelinesproposedunderSection79ITAct
» SectionclassifysocialmediaplatformslikeWhatsAppandFacebookasintermediarieswhichactmostlyasfacilitatorswithoutactivelyinvolvedincreating/modifyinginformation
» Newproposedguidelinesseektoincreasetheiraccountability
» MandatorycorporateentityinIndia
» CompliancewithIndianlaws
» MandatorygrievanceofficerinIndiawhowillrespondtocomplaintswithinprescribedtime.
» Companiesshouldtraceoriginoffakemessages
• RajivGaubapanel:Makesocialmediasitesaccountableforblockingfakenews
• Datalocalisation:TocontrolfakenewsassuggestedbyJusticeSrikrishnacommittee
• Newgovernmentagency:formonitoringfakenews
• Othergovernmentguidelines:
» PressCouncilofIndiaandNewsBroadcastersAssociationtobemademoreresponsibleforfakenewsandcomplaintredressalinprintandelectronicmediarespectively
» 15daystimeboundredressal
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» Accreditationcancelledfor6monthsfor1stviolation
» UserscreatingfakecontenttobepunishedunderIPC
Beyond Fake News Project
• TheBritishBroadcastingCorporation(BBC)hasdevisedanewcampaignthatisaimedatfightingbackagainstdisinformationandfakenews.Itlaysamajorfocusonglobalmedialiteracy,includingworkshopsanddebatesincountrieslikeIndia.
Best practices
• InSingapore,aparliamentarycommitteeformedtodeliberateonfakenewsanditscauses,consequencesandcountermeasureshasrecommendedthecountry’sgovernmenttobringinalegislationthatwouldencouragesocialmediaplatformstodemandgreatertransparencyandaccountabilityintheflowofcontent.
• Germanyhasalsocompelledsocialmediacompaniestoremovecontentthatviolatesprovisionsofitscriminalcode,encouragingerringonthesideofcensorship.
• AproposedFrenchlawgivesjudgesemergencypowerstotakedownfakenewsduringsensitiveperiods.Judgesarerequiredtoorderatakedownwithin48hours—tooshortaspantodeterminewhatis“fake”.SuchalawwasalsointroducedinMalaysiaandisstillnotrepealed.
Practice question
1. ThegreaterinterconnectednessoverICTtechnologiesposeschallengestothetraditionalelectoralprocesses.Discusstheprecautionsrequiredagainstfakenewswhicharetamperingtheelectoralbehaviour.(200words)
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STRENGTHENING OF RUPEE AGAINST ALL ITS ODDS
Context
• Rupeestrengthenslittlewithsofteroil,fundflows
• Softercrudeoilprices,alongwithforeignfundinflows,helpedtherupeepostover1%gainagainstthedollar,givinghopeforthecurrentaccountdeficittoremainwithinthetolerancelimitandforafurtherreductioninpetrolanddieselprices.
• Thisisnosurprisesinceimportedoilmeetsabout80%ofIndia’stotaldemand.ThevalueoftherupeetankedamidtheuptrendinoilpriceswhichlastedtillearlyOctober.
• FuelpricesacrossmajorIndiancitieshavefallensignificantlyinthelastfewweeks.
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Indian scenario
• Indiahas0.5%oftheoilandgasresourcesoftheworldand15%oftheworld’spopulation.ThismakesIndiaheavilydependentontheimportofthecrudeoilandnaturalgas.
• Indiaisthefourth-largestLiquefiedNaturalGas(LNG)importerafterJapan,SouthKoreaandChina,andaccountsfor5.8percentofthetotalglobaltrade.
• Indiathethird-largestoilconsumingnationintheworldandIndia’soilconsumptiongrew8.3percentyear-on-yearto212.7milliontonnesin2016,asagainsttheglobalgrowthof1.5percent.
Impact of fall in crude oil prices on economy
• ThefallinglobalcrudeoilpricescomesasabigrelieftotheCentralgovernment,whichhasfacedincreasing
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macroeconomicandpoliticalpressureduetorisingprices.
• AccordingtoUBS,adropof$10inthepriceofoilcanimproveIndia’scurrentaccountandfiscaldeficitsby0.5%and0.1%ofGDP,respectively.
• TheReserveBankofIndiawillberelievedasitwillhavetoworrylessabouttherupeeandoil-inducedinflation.
• Thispointstoanincreaseininvestorconfidenceintheeconomyasthefundamentalsimprove.
• Butrisingglobaluncertainties,itmaynotbesoeasytomapwhatliesaheadforglobalcrudeoilpricesandtherupee.
• TheDecember6meetingoftheOrganisationofthePetroleumExportingCountrieswillmakecleartheresponseofoilproducerstothesharpfallinprices.
• Shalecompaniesarealsolikelytorespondtofallingpricesbycuttingproduction;theprofitbreak-evenpointforshaleproducers.
Rising oil prices could take a bite out of India’s economy
• ReboundingoilpriceshavepushedupoilimportcostsandwillwidenIndia’scurrencyaccountdeficit.Thiswillinturnweighontherupee,whichisexpectedtodepreciatefurther.
• Thatwideningdeficitwillresultinaweakeningrupee,asmoreimportsmeanIndiahastobuymoreforeigncurrenciestomeetitsneeds.
• IndiacouldovertakeChinaastheworld’slargestoildemandgrowthcenterby2024,accordingtoaWoodMackenziereport.
• CrudeOilDemandisexpectedtogrowby3.5millionbarrelsperdayfrom2017to2035,accountingforathirdofglobaloildemandgrowth.That’sdrivenbyrisingincomelevels,agrowingmiddleclassandincreasingneedformobility.
Will rupee strengthen?
• Asthedollarisstrengtheningandallaccompanying
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fundamentalsarestrong,itlooksdifficult.
• AstheintegrationofIndianmarketwiththatofglobalmarketincreases,thefluctuationsoftheIndianrupeepersist.
• InadditiontothattheDemonetisationandGSThavealsomadeashorttermimpactofthevaluationofrupee
• FactorslikerevivalofUSeconomy,slowingdownofchinaandTurkishcurrencyturmoilalsomadeadestructiveimpactoverIndianrupee.
Elements linked to a weak rupee
• Persistentcurrentaccountdeficit;
• Episodesofnetcapitaloutflowintermsofspeculativeanddebtcapitaloutflow;and
• Predominanceofdebtcapitalinforexreserves.
• Intheeventofrupeedepreciation,theRBIintervenesintheforexmarketwiththeobjectiveofcontainingvolatility.
• ThisdeclinecouldbeonaccountoftheRBIsellingdollarstointerveneinthemarkettomanagerupeevolatility.
• However,oureffortstofurtherstrengthenFDIandpromoteexportsbydiversification,improvingthequalityofourcommodities,andfocusingmoreondevelopingandemergingmarketeconomieswillbehelpful.
• Thatistheonlylongtermsustainableandviablewaytopreventtherupeefromfalling.
Way forward
GovernmentshouldfocusonmakingstrategicreservestoragefacilitiesnowasGulfCountriesarelookingtowardstappingtheIndianoildemandduetolowimportdemandformAmericaowingtoavailabilityofshalegasatcheaperrate.
• Moreover,OilCorporationofGulfCountrieshasshowninterestinstorage-refininginIndiasinceitcanreducetheirtransportcostsintoSoutheastAsia.
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• Infuture,Governmentmayreadilyutilisethisstoragefacilityintheinternationalmarketsasitcanreleaseinventoryandbookprofitswhenpricesclimb,andrechargereservoirswhenpricesfallagain.
• Indiashouldlookatusingrenewableenergytomeetmultipleobjectivesbyincreasingproduction:energysecurity,energyefficiency,decarbonization,andsustainability,amongothers.
• Indiashouldcapitaliseonthereliefofferedbythefallinoilpricestoimproveitspreparednessforanyfuturejumpinoilprices.
• IndiahasstartedtolookforcurrencyswapagreementswithJapanandIranetc.tohaveacontroloverthecurrencyvaluefluctuation.
Conclusion
• Oilpriceshaveshotupthisyear,andaresettogoupfurtherwhensanctionsonIrankickin.
• WhilecurrencydealerssaidtheReserveBankofIndiawasnotpresentinthemarket,thestrengtheningoftherupeegaveanopportunitytoboostforeignexchangereserves.
• ThetotalforeignexchangereservesfortheendofNovember9were$393billion,downby$33billionsinceitspeakinAprilthisyear.
Practice question
1. WhatarethedomesticandinternationalreasonsfordevaluationofIndianrupee?Doyouthinkthatthemeasurestakenbythegovernmentiseffectiveenoughtocontainthefurtherdevaluationofrupee?(200words)
What went wrong in prelims 2018?
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Geography Psychology History
Module Batches
