Important Articles for Interview – 2020-21
Red Book
Red Book

  • Recommendation of 15th Finance Commission and challenges faced by Local Bodies

    Recently, 15th Finance Commission report has provided many recommendations for improving the functioning of Local Bodies. The challenges faced by local bodies in India are manyfolds and there is no one-stop solution to them.

    Approach of previous Finance Commissions with respect to Local Bodies:

    So far four Finance Commissions (11th FC to 14th FC) have given their recommendations for local bodies. Overall they provided for,

    First, the increase in quantum of Funds: In recent years, the grants recommended by successive Finance Commissions in absolute terms have increased. For example, the combined grants for rural and urban local bodies recommended by the 14th FC were three times the amount recommended by the 13th FC.

    Second, different Commissions followed distinct criteria while recommending resources for local governments. The only common criteria considered by all of them were population and geographical area.

    Recommendations of Fifteenth Finance Commission:

    First, the 15th FC suggested strict adherence to its recommendation for the constitution of State Finance Commissions(SFCs).

    • It recommends “All States must constitute SFCs and also act upon their recommendations”.
    • States also need to place the action taken report before the State legislature on or before March 2024.
    • No grants should be released to the States that have not constituted SFC.
    • MoPR(Ministry of Panchayati Raj) will certify the compliance of the State in this respect before the release of their share of grants.

    Second, with respect to the Grants to Local Governments, the commission earmarked 60 per cent of funds for national priorities. These priorities include drinking water supply, rainwater harvesting and sanitation etc. The other recommendations include,

    • The report favours a fixed amount rather than a proportion of the divisible pool of taxes. This is to ensure greater predictability of the quantum and timing of fund flow
    • The report provides entry-level condition to local bodies to avail grants. These conditions will include online availability of both provisional accounts of the previous year and audited accounts of the year before that.

    Third, the report calls for the Integration of the Financial Management Systems for transparency in the audit and functioning of local bodies.

    Fourth, the report recognises Urbanisation as the Engine of Growth. It mentions few important recommendations like,

    • Establishment of Million-Plus Cities Challenge Fund for cities having million-plus population. The devolution of the fund will be linked to the performance of these cities in improving their air quality and meeting the service level benchmarks for urban drinking water supply, sanitation, and solid waste management, etc.
    • It also mentions that informal burning, as well as spontaneous combustion at landfills in Urban areas, should be monitored carefully.
    • The report calls for basic grants for urban local bodies in the non-Million-Plus cities category.
    • The report also asks for allocating grants on the basis of population for the Cantonment Boards falling within the State’s territory.

    Fifth, the 15th FC’s other recommendations include:

    • Involving Panchayati Raj Institutions as supervising agencies in primary health care institutions. The Commission believes, it would strengthen the overall primary health care system.
    • The commission provided for a performance-based challenge fund of Rs. 8,000 crore to States for incubation of new cities.
    • The commission recommends an amendment to the Constitution to revise the professions tax.

    Various challenges faced by the local bodies:

    Challenges with respect to functions:

    First,  there is an Excessive control of State government in the functions of PRIs. For example, state government approval is needed in project finalization, Local bodies Budget, Loan requirement, etc. States, instead of guiding PRIs, are restricting the functions of local bodies.

    Second, local bodies lack adequate data on essential services and cannot involve in Urban and Rural planning. Though data on Census is available, it consists of data of previous years and not the current data. For example, they do not have data on local traffic, urban sewage, migration of people, etc.

    Challenges with respect to funding:
    First, Article 243-I of the Constitution requires SFCs(State Finance Commission) to be appointed at the ‘expiration of every fifth year’. Several States have still not moved beyond the second or third SFC. Even if formed they face challenges like inadequate resources, poor administrative support and the delayed placement of action taken reports(ATR), etc.

    Second, the tax base of Urban and Rural local bodies is very narrow. For example, Urban Local bodies cannot levy a profession tax of more than 2500. They also have a problem in levying entertainment taxes and property taxes.

    Third, the Majority of the local bodies do not have access to the Capital market to raise required funds except few Urban local Bodies such as Pune, Chennai, etc

    Challenges with respect to the Functionaries:
    Role of women elected members. There are many instances where, in the name of elected women representative their husband operates and takes the decision on her behalf. This undermines the agenda to empower women by providing 33% reservation to them.

    Suggestions with respect to functions:
    First, the Second ARC has recommended a special problem-solving body to resolve the issue of disqualification of elected members. It also suggested an unbiased approval of Local body budgets, projects, etc. State governments need to implement this.

    Second, State Governments should provide local bodies with the power to recruit personnel to fulfil their functions properly. Apart from that the State governments also have to allow the local bodies to collect the local data for future use and preliminary planning.

    Suggestions with respect to funding:

    First, States should implement 15th FC  recommendation to appoint SFCs or else grants released to the respective State can be halted.

    Second, the power to levy taxes on the Union and State Government properties can be provided to local governments. Apart from that, they should be empowered to levy taxes on wealthy people in their locality, impose water cess, irrigation cess etc. For example, a case study in Karnataka has proved that the levy of water cess is a feasible alternative for local bodies.

    Third, separate grants may be allocated to local bodies for creating public health infrastructure and primary health care clinics.

    Suggestions with respect to the functionaries:

    To improve the performance of functionaries, the timely election is the need of the hour. Apart from that, the State can encourage Public-Private Partnerships. It will improve the skills of elected local representatives with market expertise and modern methods.

    The state government can form strict guidelines for the active involvement of elected women representatives in all spheres of the functioning of local bodies.

    Apart from implementing the recommendations of the 15th FC, the voluntary contribution of States is also the need of the hour. The States have to understand that empowerment of local bodies is needed to find solutions to the number of issues faced by them like enhancing tax base, providing adequate primary health and education services, etc.

  • Vehicle Scrappage Policy and the associated challenges: Explained

    Recently, The Finance Minister announced the “Vehicle Scrapping Policy” in her Budget speech. The policy will phase out older, inefficient and polluting vehicles. Apart from that, the policy will also promote the use of more environment-friendly vehicles and reduce the oil import bill. But it is not an easy task and has a few challenges associated with it.

    What is the proposed Vehicle Scrappage Policy?

    The Ministry of Road and Transport is yet to announce the proper guidelines. But according to the Budget speech, the important provisions of the scrappage policy will include the following features. Such as

      • The private vehicles older than 20 years and commercial vehicles older than 15 years, can be scrapped voluntarily. To run these vehicles on the road, a fitness certificate (FC) will be mandatory.
      • Automated vehicle fitness centres belong to the government will issue certificates after conducting fitness tests.
      • Each fitness certificate is valid for five years. After that, the vehicle will undergo another fitness test. Those having this certificate will not need to pay any registration fee while buying a new vehicle. The certificate is tradable, which means it can be used by anyone and not necessarily by the owner of the scrapped vehicle.
      • If a vehicle fails the fitness test, the government will not provide renewed Registration Certificates (RC) for those vehicles. As per the Motor Vehicle Act, 1988, driving a vehicle without an RC is illegal in India.
      • Each vehicle is permitted to have three failures in the fitness test. After that, the vehicle might be forwarded to vehicle scrapping.
      • The government is expected to provide monetary incentives to the owners scrapping the vehicles.

    Each fitness test will approximately cost Rs 40,000. If the vehicle passed the fitness test, the owner of the vehicle has to pay road tax, and a possible “Green Tax” (Tax levied on goods that cause environmental pollution).

    The total cost involved in pursuing a Fitness test and paying “Green tax” will act as a deterrent to have older vehicles. This will further facilitate voluntary Scrapping of the old vehicle and buying a newer one.

    Read more about the proposed Green tax

    Need for such Vehicle Scrappage Policy:

     

    First, According to the Centre for Science and Environment (CSE), by 2025 India will have over two crore old vehicles nearing the end of their lives. Not only that, India adds 1,400 vehicles every day. The scrappage policy will reduce the congestion on the roads.

    Second, A logical extension of NGT ruling for Delhi NCR and Scrappage policy of Government Vehicles.

      • In 2015, National Green Tribunal barred diesel vehicles older than 10 years to commute on Delhi NCR roads. The scrappage policy is the next step to prevent them from further commuting on roads.
      • Further, the government accepted the Scrappage policy for Central and State Government vehicles older than 15 years on January 25, 2020. The policy will come into effect on April 1st, 2022.
      • Apart from that, the government also introduced a draft Vehicle Fleet Modernization Programme in 2016. But the project never got materialized.

    Third, IIT Bombay’s conducted a multi-city study in 2014. The study estimated that pre-2005 vehicles were responsible for 70 per cent of the total pollution load from vehicles. The scrappage policy will be a shot in the arm for these polluting vehicles.

    Benefits of the proposed policy:

    First, The Scrappage policy will benefit the following sectors at one go.

      • The policy will stimulate the domestic automobile and automotive industry. The automobile industry is projected to grow at an annual rate of 22% if this policy is implemented properly.
      • Apart from that, it will provide a massive opportunity for players in the organised scrappage and recycling industry. The scrapping will provide recovery of steel, aluminium, plastic etc. and boost the industries associated with it.

    Second, Curbing air pollution: Old vehicles are not compliant with Bharat Stage VI emission standards. This is leading to more air pollution. For example, one 15-year-old vehicle has emissions equivalent to 25 new-generation vehicles. The scrappage policy will reduce the pollution level by 25 percent as compared to old commuting vehicles.

    Third, Increase in tax revenue for the government. The revival of the automobile and other sectors associated will boost the tax revenues. According to an estimate, taxes from the automobile sector will amount at Rs 10,000 Crores, if scrappage policy is implemented properly.

    Fourth, Containing oil imports: According to the BEE (Bureau of Energy Efficiency) estimates, India has to enforce Scrapping old vehicles and shifting towards higher fuel efficiency norms. If it is achieved, then as per the BEE estimates, “there will be a reduction of 22.97 million tons of fuel demand in India by 2025”. This will help in saving oil import and associated costs.

    Fifth, Fulfilling India’s International commitments:  India has committed to the Paris Agreement on Climate Change and provided national targets for reducing emissions. The Scrappage policy will reduce the pollution level and also fulfil India’s commitment to reduce CO2 levels to tackle Climate Change.

    Overall the Scrappage Policy has the potential to revive the Indian Steel sector and also has the potential to promote India as a vehicle manufacturing hub in the world.

    Challenges associated with the Vehicle Scrappage Policy:

    First, Who will bear the cost of monetary incentive provided to owners?  The scrappage industry may provide incentives for scrapping older vehicle (like recovery of scrap, steel etc.). The government is not a direct beneficiary except the environmental cost. Thus, providing incentives from public money might not be feasible.

    Second, In rural areas, old vehicles are being used as the owners have very limited financial resources to purchase new vehicles.

    Third, Scrapping capacity of India is in doubt. India so far has only one government-authorized scrappage workshop in Greater Noida. Also, the government do not have any standard operating procedures (SOP) for setting up of vehicle scrapping centres. Formulating a policy without having the capacity will lead to accumulation of old vehicles like solid wastes.

    Fourth, Regulation of pollutants released during scrapping. The scrapping of Vehicle will release toxic metals like mercury, lead, cadmium or hexavalent chromium. If not properly regulated, it will pollute the environment and have long-lasting consequences.

    Read more about the taxing older vehicles: a way forward

    Suggestions:

    First, In the Electric Vehicle Policy of the Delhi government, they linked scrappage incentives with buying of electric vehicles. Such a special linkage of policy is necessary at the national level to promote the electric vehicle.

    Second, There must be an exception for Vintage and Classic cars. The government also have to introduce a provision for Modern Classics. These are an important part of automotive history and the history of humanity. Since most of these vehicles are used sparingly and in the well-maintained condition, they can be exempted.

    Third, Centre for Science and Environment (CSE) released a report titled “What to do with old vehicles: Towards effective scrappage policy and infrastructure”. In that, the CSE gave a few important suggestions for vehicle scrapping policy in India. They are

      • There should be a separate effort to include Extended Producer Responsibility (EPR) in collecting the car for scrapping. Apart from that, there should be legally binding rules for scrapping.
      • The scrappage scheme should incentivise replacement of old vehicles with EVs. On the other hand, the government should also frame a policy to reduce the purchasing of traditional petroleum-powered vehicles.

    The Scrappage policy has the potential to meet the government-set target of 30-40 percent electrification of the vehicle fleet by 2030. But it can be sustainable only when the government provide adequate support to Electric Vehicles such as by creating the necessary infrastructure for charging, manufacturing battery packs etc.

  • The POCSO Act and associated issues

    Bombay High Court in Satheesh vs State of Maharastra case acquitted a man of sexual charges under the POCSO ( Protection of Children from Sexual Offences) act. The court cited the stringent Mandatory Minimum Sentence provision in the POCSO act and punished the person based on the IPC section 354 (Outraging the modesty of women).

    However, the Supreme Court stayed the Bombay High Court verdict. But this is not an only incident, where, an accused has been acquitted under POCSO Act. Today, one more HC acquitted an accused in a similar case.

    There is an urgent need to understand the issues and challenges Courts are facing in the implementation of The POCSO Act. The recent interpretation by Bombay High Court is one such issue among many.

    What is the POCSO Act?

    The Protection of Children from Sexual Offences Act (POCSO Act) enacted in 2012 and amended in 2019. The Act was formulated to effectively address sexual abuse and sexual exploitation of children and pornography.

    Salient provisions of the Act:

    First, The Act defines Child as any person below eighteen. The Act also defines different forms of sexual abuses.

    Second, The Act provides for relief and rehabilitation as soon as the complaint is made to the Special Juvenile Police Unit or the local police.

    Third, The Act prescribes a maximum punishment of life imprisonment or the death penalty. The Act provides a mandatory minimum punishment of three years.

    Fourth, The Act provides for the establishment of Special Courts for the trial of offences under the Act.

    Read more about the POCSO Act

    What is the intent behind the enactment of the POCSO Act?

    First, data from the 2011 Census shows, India has a 472 million population of children below the age of eighteen. To protect them from sexual offences separate legislation was required.

    Second, India is a signatory to the UN Convention on the Rights of the Child. So the POCSO Act was a mandatory international commitment to protect the rights of children.

    Third, the Goa Children’s Act 2003 was the only legislation which specifically focuses on child abuse. Thus national-level legislation was the need of the hour that can be implemented in every State and UTs.

    Fourth, Child sexual abuse was prosecuted under various sections of IPC such as Section 375 deals with rape etc. But the IPC sections suffer from various issues such as

      • IPC Section 375 does not protect male Child and protect only the traditional sexual offences like peno-vaginal intercourse.
      • IPC Section 377 and IPC Section 354 does not define the terms “unnatural offences” and “modesty”.

    What is the significance of the POCSO Act?

    First, The Act provides for immediate relief at the filing of the case. The compensation amount can change, based on the need of the victim. For example, the Act does not define the outer limit. The Judges can include Child’s educational need, medical needs including trauma compensation while deciding the compensation amount.

    Second, The Act is Gender-neutral and Child friendly. The Act defines Child as any person below 18 years of age. Apart from that, the Act includes various safeguards for the child, like protecting the identity, avoiding victimization etc.

    What are the challenges associated with the POCSO Act?

    First, The POCSO Act is suffered by Abysmal rate of conviction like 14% in 2014 and 18% in 2017. The National Crime Records Bureau(NCRB) data of 2016, mentions the conviction rate as 29.6%, while pendency is as high as 89%. The NCRB also mentions the cases are not disposed within a year due to reasons such as frequent adjournments, the inability of the police to file investigation report etc.

    Second, Though, the Act mentions Special Children courts to be established to hear the cases. Many states did not establish such courts. This is highlighted by  Re: Exploitation of Children in Orphanages in the State of Tamil Nadu v. Union of India & Ors case.

    Third, the Act provides a maximum punishment of death penalty. But Justice J.S. Verma Committee (Constituted on the aftermath of the Nirbhaya case) and 262nd Report of the Law Commission of India, 2015, were against the imposition of the death penalty for rape cases.

    Fourth, Section 8 of the POCSO Act prescribes a mandatory minimum sentence of three years. The state of J&K vs Vinay Nanda case the Court held that it cannot prescribe punishment lesser than the minimum prescribed punishment. This resulted into the various challenges such as

      • More acquittals in POCSO cases: Percentage of acquittal is high because the Judges thinks the mandatory minimum punishment prescribed is more compared to the seriousness of the crime.
      • Else the Court can acquit the accused and punish him like that of Satheesh vs State of Maharastra caseIn other words, punishing the person under Section 354 of IPC (Outraging the modesty of women).

    Section 7 and 8 of POCSO Act: Section 8 prescribes the punishment for the offence of sexual assault defined in Section 7 of the Act. It provides for the mandatory minimum sentence of 3 years and a maximum of 5 years.

    Section 7 of the POCSO Act mentions whoever “with sexual intent” touches the private part of children or commit any such act “which involves physical contact”… “is said to have committed sexual assault”.

    Difference between Section 8 of the POCSO Act and Section 354 of IPC:

    Section 8 of the POCSO ActSection 354 of IPC
    This section is gender-neutralThis section is only for women and not for male or transgender child
    Punishment can be a minimum sentence of 3 years and may extend to the maximum sentence of 5 yearsPunishment shall not be less than one year but it may extend to five years

    Fifth, The POCSO Act is considered as a victim-oriented statute (i.e., the damage caused to the victim assumes more importance). This makes the Act, not a neutral one. For example, Section 29 of the POCSO Act mentions If a person is prosecuted under the POCSO Act, the special court “shall presume” the accused to be guilty.

    Sixth, The Act does not cover all the aspects of sexual violence of children. For instance, the Act is silent on cyberbullying and other online sexual crimes of children. The Act is also silent on cases were one child made sexual violence against another child/children.

    Way forward:

    First, the government has to amend the POCSO Act to overcome the challenges by removing the mandatory minimum sentence and the death penalty. The amendment should also include offences such as cyber bullying of children and other online sexual crimes against children.

    Second, High courts should instruct the trial courts not to grant unnecessary adjournments during the trial. State police chiefs should constitute special task forces investigating cases to prevent the pendency of cases.

    Third, The Supreme Court issued a direction to set up special courts within 60 days on the districts that are having more than 100 pending POCSO cases. This has to be implemented urgently.

    Fourth, the introduction of sex education in schools and educating the children about good touch and bad touch is significant. In 2008-09 Parliamentary committee report mentions the introduction of sex education, but it never materialized. It has to be implemented.

    Though the Act can be amended and faster implementation can provide relief to the Children, Awareness and sensitization of people is equally important to prevent the crime itself.

     

  • Criminalisation of government criticisms: Laws and issues

    Recently Bihar government decided to categorize defamatory and offensive social media posts against government officials as cybercrime. Bihar Police has issued a circular to implement this order.

    This is not the first instance when Sedition laws and criminal defamation have been used to silence the critics of the government.

    Examples of Government silencing critics:

    First, As per the National Crime Records Bureau (NCRB), 70 people were accused of sedition in 2018. But only four cases actually ended in conviction.

    Second, In August 2016, the court criticized the then Tamil Nadu Chief Minister J Jayalalithaa for misusing the criminal defamation law to “suffocate democracy” and, the court held that, “public figures must face criticism”.

    Third, In May 2020 Madras High Court declared 28 criminal defamation proceedings filed by the Tamil Nadu government as invalid.

    Fourth, the NCRB Report 2018 mentions, the conviction rate of offenders prosecuted under the Unlawful Activities Prevention Act was just 14.5% in 2015.

    These are clear examples of government using sedition, Criminal defamation and other suits as a means of harassment.

    What are the laws governing criticisms against the government?

    First, Sedition under section 124A of the IPC (Indian Penal Code). Sedition is defined as any action that brings or attempts to bring contempt or hatred towards the government of India. Sedition cases are punishable with a maximum sentence of life imprisonment.

    Second, Criminal defamation under section 499 of the IPC. Defamation is defined as the communication of a false statement that harms the reputation of an individual person, group, product, business, government, religion, or nation.

    Third, The Government enacted the Information Technology (IT) Act 2000 for matters related to cybercrime and e-commerce. Under this act, the Government can punish any crime involving a computer or a network. The Act can charge India citizens as well as foreigners.

    Fourth, The Unlawful Activities Prevention Act of 1967. The Act aims to effectively prevent unlawful activities and associations involved. In 2019 the government amended the provisions of the Act to designate an individual as a terrorist. The Law prescribes a maximum punishment of death penalty or life imprisonment.

    Fifth, Apart from these Acts several states have enacted specific laws to govern the criticisms. For example draft bill of Shakti Act of Maharashtra has a provision for stricter punishment for offenders who post defamatory messages on social media.

    What are the Judicial interventions on Laws governing criticisms?

    First, In Kedarnath Singh vs State of Bihar case 1962, Court upheld the constitutional validity of Section 124A (Sedition). The Court mentioned, “citizen right to freedom of speech and expression does not include incite people to be violent against the government or with the intention of creating public disorder”.

    Second, In Balwant Singh v State of Punjab case 1995, the Supreme Court held that mere sloganeering that evoked no public response did not amount to sedition.

    Third,  The Supreme Court of India, in the Subramanian Swamy vs Union of India, 2014, upheld the constitutional validity of the IPC (Section 499 and 500). The court mentioned the fundamental right to live with dignity and reputation “cannot be ruined solely because another person can have his/her freedom”.

    Fourth, In Shreya Singhal vs. Union of India 2015 case, the Supreme Court struck down Section 66A (this provision criminalizes sending offensive messages through a computer or other communication devices) of the Information Technology Act, 2000. The court also held that the provisions of section 66A have violated Right to freedom of speech and expression.

    Why we need such laws in India?

    First, These laws have utility in combating secessionist, anti-national and terrorist elements. Some highly publicized cases cannot be the reason to repeal section 124A, section 499 and UAPA.

    Second, If contempt of court invites penal action, the contempt of government should also attract similar punishment for the smooth functioning of democracy.

    Third, These laws provide stability to the democratically elected government. Sedition laws, Defamation laws and UAPA act as a strong defence against violence and illegal activities aimed to overthrow the government

    Why the provisions have to be repealed?

    First, These provisions are clear examples of a violation of the Right to Freedom of Speech and Expression. Right to question, criticize and change rulers is one of the fundamental ideas of democracy. Both the sections of IPC(124A and 499) and the provisions of UAPA are in direct conflict with the aforesaid Rights.

    Second, IPC and Unlawful Activities Prevention Act have provisions that penalize “disrupting the public order” or “overthrowing the government with violence and illegal means”. These are sufficient for protecting the national integrity. There is no need for Section 124A and 499. It can be repealed.

    Third, In 1979, India ratified the International Covenant on Civil and Political Rights (ICCPR). The ICCPR sets out internationally recognized standards for the protection of freedom of expression. However, the misuse of sedition, criminal defamation and UAPA is inconsistent with India’s international commitments.

    Fourth, Even the UK (sedition law originated) and Australia have removed sedition laws. International bodies such as the UN had recognized the threat posed by criminal defamation laws.

    Fifth, The criticisms if reach at right time to the government, then it can save a lot of resources, government machinery, etc.

    Way forward:

    There are certain ways to improve sedition, criminal defamation and the application of UAPA in India.

    First, We have to educate the Law enforcement authorities to prevent the problem of misuse. The enforcement authorities might be trained regarding the application and non-application cases of sedition, criminal defamation and UAPA suits.

    Second, the State has to follow the Parent-Child approach during the criticisms where raised. The Madras High court advocated this approach in May 2020.

    Parent-Child approach: The state must act like it is the parent of all its citizens. Despite the insult (sedition or criminal defamation) by children (citizen), parents don’t discard their children quite easily. Like that State also accept the fact that public figures must face criticism.

    Third, The Protection of Speech and Reputation Bill, 2016 in modified form can be enacted by the government. The Private member bill has certain important provisions such as

      • Setting the maximum claim limits and barring governments, local bodies and other institutions (statutory functions) from filing suits for defamation and sedition.
      • Providing punishments such as apologies, corrections and retractions, for a lesser form of crimes.

    India is an open and liberal society, the largest democracy. But to secure national integrity, divisive forces have to be kept in check. So, it is necessary to retain the laws criminalising criticisms. But the wrongful enforcement and misuse have to be checked.

  • Issue of cruelty against wild animals in India

    Recently an elephant died in Mudumalai Tiger Reserve (MTR), Tamil Nadu. The death was caused by a burning tyre thrown at the elephant by some people.

    This is not the first instance when a wild animal has been killed due to fire, firecrackers or by a mob with sticks. The violence against wild animals has increased many folds in recent years. But such news gets attention only when a video gets viral or some mainstream media airs it.

    There is an urgent need to know the root causes of this increasing threat to wildlife.

    Present status of cruelty against wild animals in India:

    Before this incident, in June 2020 a pregnant elephant died due to hunger and fatigue. This happened after a local fed a cracker stuffed pineapple to her.

    Under the Prevention of Cruelty to Animals Act, between 2012 and 2016, more than 24000 cases of animal cruelty have been reported in India.

    In India, cruelty against wild animals is mainly prevalent in the areas where a man comes in contact with wild animals or vice versa. About 20-25% of people directly derive their livelihood from the forest or the agricultural land in the vicinity.

    Why there is a high prevalence of cruelty against wildlife?

    First, the prevalence of Illegal wildlife trade: Wild animals in India are hunted for their body parts such as tiger and leopard skins, their bones and other body parts. These products are smuggled at very high prices in markets such as China, South East Asia, Europe and the Gulf.

    Second, in India, there is increased pressure on natural resources. This has led to a decrease in wildlife corridors. Wildlife corridors are the lifeline of wild animals. This is resulting in human-animal conflict and conflicts are used to justify violence against wild animals.

    Third, The threat to farmers: Farmers in India have only fragmented landholdings (The average farm size in India is only 1.15 hectares). Farmers see wild animals as a threat to their livelihood. They resort to cruelty against animals to protect crops by Electric fencing, poisoned fruits, firecrackers, snare traps,  etc.

    Fourth, people generally see wild animals as a threat to humanity. Even though wild animals don’t want to harm humans, Human see the wild animal as a threat at the moment they saw the animal.

    Laws to stop cruelty against animals in India

    “Prevention of cruelty to animals.” and “Protection of wild animals and birds.” are present in Concurrent List (both the Centre and the States have the power to legislate).

    1. The Wild Life (Protection) Act, 1972:

    First, this Act prohibited the capturing, trapping, baiting, or poisoning of wild animals (even attempting to do) as a punishable offence. The Act prescribes punishments such as 25,000 INR fine or a prison term (up to 7 years) or both.

    Second, The Act also makes it unlawful to injure, destroys wild birds or reptiles, damaging their eggs or disturbing their eggs or nests. If the person found guilty he/she can be punished with imprisonment (3 to 7 years) and a fine of Rs 25,000.

    Third, the Act established the Wildlife Crime Control Bureau. The Bureau aims to combat organized wildlife crime in the country

    2. The Prevention of Cruelty to Animals Act, 1960  

    First, This Act defines “animal” as any living creature other than a human being.

    Second, The Act generally focuses on all the animals, but it has certain specific provisions aimed towards the cruelty of wild animals. They are

      • Beating, overriding, kicking, torturing, overloading, and causing unnecessary pain to any animal.
      • Administering an injurious drug/medicine to any animal.
      • Killing or Mutilating any animal in cruel manners such as using strychnine injections.
      • Shooting an animal when it is released from captivity.

    Third, This Act established the Animal Welfare Board of India (AWBI). The AWBI aims to promote the promotion of animal welfare.

    Fourth, the Act does not consider the following acts as cruelty against wildlife.

      • Extermination of any animal under the authority of law
      • Dehorning/castration of cattle in the prescribed manner,
      • Destruction of stray dogs in lethal chambers in the prescribed manner

    Challenges in controlling Cruelty against wildlife

    First, the Supreme Court has issued a directive to states for setting up a State Animal Welfare Board.  But the majority of the states have not formed the state welfare boards yet.

    Few states like Maharashtra and Rajasthan formed State Animal Welfare Boards. But in those states, the Boards faces challenges like inadequate budgetary allocation, lack of forest personnel, etc.

    Second, The Prevention of Cruelty to Animals Act, 1960 has few serious lapses. They are,

      • The Act doesn’t differentiate between different form of cruelties against animals. For example, the law prescribes similar punishment to the person who kicks a wild animal and the person who killed the wild animal.
      • Most serious forms of animal violence receive the maximum punishment of a fine of 50 rupees or imprisonment up to three months or both.

    Third, there is a huge difficulty in tracing violators: The wild animal is harmed either in the forest or in farmland. Not every incident is reported or documented. Apart from that, finding proof against the violator is difficult unless there is a witness or media like images/videos.

    Fourth, there is a contradiction in the classification of elephants as wild and domesticated: While the WPA, 1972 protects elephants as a wild animal. The administrative policies allow for an ownership exception. For example, there are almost 500 privately owned elephants in Kerala alone.

    Way forward

    First, Amending the Prevention of Cruelty to Animals Act:  In this regard in 2011, The AWBI recommended amendments to The PCA Act, that are required to be implemented. The major provisions of the bill include,

      • The PCA Act has to move away from a ‘defensive position’ to a more ‘welfare-oriented approach’. It should be done by expanding the definition of animal abuse and empowerment of Animal welfare organizations.
      • The PCA Act should multiply the penalty for repeat offenders by a factor of 1,000

    Second, State governments have to establish the State Animal Welfare Board. Further, Boards should be allocated adequate finances and manpower.

    Third, encouraging farmers to move away from cruel measures to humane methods to protect their crops. Eg: Farmers in Tamil Nadu are making use of the Italian honey bee (natural elephant deterrent). The government can provide technological solutions like radio-collaring, etc to monitor the movement of wild animals.

    Fourth, The agriculture and forest departments must cooperate and share the burden of compensation to farmers for crop loss due to wild animals.

    Fifth, the government has to involve the civil society, NGOs and local administration in creating awareness. Awareness has to be created about the seasonal migration of animals, Man-wild animal ecosystem balance etc.

    Gandhi once mentioned, “The greatness of a nation and its moral progress can be judged by the way its animals are treated”. The Cruelty to wild animals is the evidence where human losing humanity. So apart from government initiatives, we also have to understand the seriousness of the issue.

     

  • Wages for housework: An Analysis

    Recently, Kamal Haasan’s political party, Makkal Needhi Maiam, proposed a due recognition to homemakers. The Political party included payment for homemaker’s domestic work as a part of their election manifesto.   

    The proposal reopened the academic debate of Paying women for their domestic and care work. 

    Payment to domestic care work was first demanded by the Third National Women’s Liberation Conference, in England in 1972. 

    Is it new concept to India? 

    No, it is not a new concept to India. 

      • In 2010, the National Housewives Association tried to seek recognition as a trade union. But the deputy registrar of trade unions rejected the proposal on the ground that housework is neither a trade nor an industry. As Home and market for centuries were considered as two distinct spheres. 
      • In 2012, the Ministry of Women and Child Development considered mandatory salary for housework done by wives. It considered the proposal that wives will receive salary from Man (Husbands). But the proposal never materialised. 

    Need to recognise household work: 

    FirstAccording to International Labour Organizationthere is a huge difference between the care responsibilities of women’s and men’s care. Women performs 76.2 percent of total hours of unpaid care workThis is three times more than similar work performed by men. In Asia and the Pacific regions, this figure rises to up to 80%. 

    SecondHousework demands 24*7/365 days of effort and sacrifice. Domestic work is essential for vulnerable persons in the house such as older persons, sick persons, children, etc. Thus, it should be recognized as a profession with same entitlements as paid employment.  

    Third, A large number of women living with domestic violence and other forms of cruelty. This is because they depend economically either on husband or on any other member of family. 

    For these reasons in 1991, The UN Committee on the Elimination of Discrimination Against Women, recommended measurement and quantification of domestic activities performed by women. This is to highlight the economic contribution of women.  

    Further read about: Paying women for domestic and care work  

    Advantages in recognising Housework: 

    Firstas per Shashi Tharoor, recognising housework will enhance women’s power and autonomyThis will lead to a recognition of the value of unpaid work performedIt will result in near universal basic income.  

    Secondrecognising the housework will put homemakers at the same level as other professions such as doctors or office workers. Social protection benefits can be made available as a next step.  

    Thirdit will improve gender equalityHousework salary will provide economic freedom and help women to live with dignity. 

    FourthWomen will have the ability to choose the work they desireAfter recognition, women can take either office work or housework, based on the level of income. Thus, women can overcome time poverty (shortage of time available towards personal requirements such as leisure, recreational activities) and can achieve ‘work-life balance’.  

    Fifth, it can lead to accurate National Income Accounting and GDP calculations of our economy. At present national income calculations not included the domestic care work performed. Thereby underestimating the GDP at present.

    Lastly, recognising the housework will revolutionise the role of women in our society. 

    Also read: Should there be wages for housework? 

    Challenges associated with recognition of housework: 

    First, the calculation of the monetary value of care work: In the Arun Kumar Agrawal v. National Insurance Company (2010) case, the Supreme Court acknowledged the contribution of the housewives as invaluable. The court also observed that it cannot be computed in terms of money.  

    Second, if recognised Who will pay the money?  

      • If husbands are entitled to pay HouseworkIn this case, the total household income will remain the same unless the husband’s income is improvedThere is a high chance of housework is not getting paid to their wives. 
      • If the government is entitled to pay Housework: It will put an undue burden on State and there is a high chance of Fiscal Deficit targets were not met.  

    Thirdit might create a new social norm that domestic and care work is ‘women’s work’as they are being paid for it. This will strengthen the patriarchal mindset and makes redistribution’ of the burden of unpaid work impossibleThis will reinforce the gendered division of roles. 

    Fourth, Practical implementation is highly questionable. Legal recognition does not always mean protection. This is evident from the equal inheritance rights to daughters were not fulfilled to the majority of women in India. Apart from that one cannot determine the leave policy, Loss of Pay if wife went to her home town etc.  

    Fifth, recognising domestic work will reduce women’s potential in education, talent etcMany talented women might be forced to perform household work as it is recognised. 

    Sixth, it might lead to the commodification of housework and personal care, like that of surrogacy.  

    Read about the alternatives for wages against housework 

    Way forward: 

    We need to strengthen awareness, implementation, and utilization of other existing provisions like;  

      • Right to reside in the marital home,   
      • Streedhan and Haq Mehr (amount entitled to Muslim women from her husband under marriage contract),   
      • Inheritance rights as daughters  
      • Free legal aid to women during the instances such as domestic violence, divorce etc. 

    Apart from that, Husbands should support wives in their daily housework. To perform that better parenting is required by the present generation. Parenting should focus our boys to be sons, brothers, husbands, and fathers who would respect women and women’s rights. 

    Women should be encouraged to reach their potential through quality education, opportunities of work, gender-sensitive and harassment-free workplaces. 

    There is another idea better than recognising housework. It is the idea of transferring Universal Basic Income (UBI)(unconditional cash payment to low-income householdsto the account of women members of family. This will put the money directly in the hands of women and not stress government as significant as the recognition of housework. 

  • Establishment of Bad Banks – associated Issues and Significance

    As a result of the Covid-19 pandemic induced economic slowdown, thcommercial banks are about to witness the spike in NPAs, or bad loansTo deal with it, Reserve Bank of India (RBI) Governor is considering the proposal for the creation of a bad bank.  

    What is Bad Bank? 

    A bad bank is an asset reconstruction company (ARC)involved in management and recovery of bad loans or NPAs of other banks.  

    Generally, these Banks are initially funded by the government and graduallybanks and other investors start to co-invest in them 

    What are the functions of Bad banks? 

    Commercial and Public Sector Banks (PSBs) sell their NPAs to the bad bank. The bad bank manages the NPAs/bad loans and finally recovers the money over timeThe takeover of bad loans is normally below the book value of them. These banks are not involved in activities like lending and taking deposits 

    For example, consider a steel plant’s loan with SBI, turned into an NPA. Bad bank purchases this NPA from the SBI. After that, the bad bank appoints domain experts to manage the assets of the plant with an aim to maximize revenues and cut losses. This is called reconstruction and increases the economic value of the plant. When the bad bank sells this plant, it will recover more money. 

    The first bad bank was created in 1988 by the US-based Mellon Bank. After that, similar concept has been implemented in other countries including Finland, Sweden, France and Germany.  

    Concept of Bad bank in India: 

      • The idea gained momentum when the RBI held asset quality review (AQR) found several banks showing a healthy balance sheet but have suppressed or hidden bad loans. 
      • Sunil Mehta panel on NPA’s (Non-Performing Assets) proposed Sashakt India Asset Management company, for resolving large bad loans in 2018. 
      • The Bad bank proposal was also discussed during the Financial Stability and Development Council (FSDC) meeting, but the government preferred a market-led resolution process instead of a bad bank. 
    Difference between Bad Bank and ARC (Asset Reconstruction Company): 
    Bad Bank  Asset Reconstruction Company 
    A bad bank is simply a corporate structure that isolates liquidity and high-risk assets held by a bank or a financial organisation, or perhaps a group of such lenders. ARCs are registered with RBI under Section-3 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. 
    Bad Banks if established can take over all types of stressed assets ARCs will only buy those pools of stressed assets if they see business-viability of those pools. 
    Currently the Bad banks are at conceptual stage and yet to be materialized Currently, there are many licensed ARCs in India 
    Why a bad bank is required? 

    FirstBanks have difficulty in solving these cases due to lack of expertise, coordination, capital etc. Even the private ARCs have also failed to recover the loans. 

    SecondThe RBI fears a spike in bad loans after the Covid-19 pandemic and the six-month moratorium announced to tackle the economic slowdown. This creates a necessity of Bad banks. 

    Thirdthe panel led by KV Kamath, has said companies in sectors such as wholesale trade, retail trade, textiles and roads are facing stress. So, setting up a bad bank is crucial to revive these sectors. 

    Fourth, Bad banks are targeted banking system with domain experts to focus particularly on NPAs Bad banks can be more effective, quicker in restructuring of the loans. 

    The Financial Stability Report points that the gross NPAs of the banking sector are expected to shoot up to 13.5% of advances by September 2021, from 7.5% in September 2020, under the baseline scenario. So, the Bad banks are essential considering the Indian conditions. 

    Advantages of having Bad bank: 

    FirstBad banks will improve credit mobilization culture in the economy: By holding the defaulters accountable the Bad Banks will ensure the accountability of borrower to pay the loan at any cost. 

    Second, Bad Banks will improve monetary Policy Transmission. NPAs were one of the major reasons for the lack of monetary policy transmission (MPT) in India. Even though RBI has reduced policy rates, Banks don’t reduce lending rates, to recover the cost of NPAs with them. If bad banks can manage their NPAs, their financial health will improve and facilitate MPT in the economy.   

    ThirdBad Banks can take bold decisions compare to commercial Banks. In General, the price at which NPAs are sold comes under the preview of CVC, CBI and CAG. Banks were hesitant to reveal and disposal of stressed assets fearing adverse reports by these institutions. A bad bank that can maximize recovery due to professionalism and hence will be less hesitant. 

    FourthHigher prices for stressed assets can be realized by bad banks.  

    Challenges associated with bad banks:

    First, the major challenge associated with the Bad bank’s establishment is regarding what kind of loans will be taken over by bad banks, and at what cost? This is aggravated when the commercial banks were reluctant in the past for haircuts. If a PSB accept the NPA sale at lower price to Bad Bank then that loss is incurred by that PSB (I.e., the government) 

    Second, the stake of government in Bad bank is criticised for political influence in decision makingEspecially when the majority of the NPAs are associated with the Public Sector Unit. 

    Third, the establishment of bad banks may not incentivise banks to focus on the quality of credit provided, monitor loans, and protect against ever-greening of loans. Banks might perform lending activities in the mindset that there is a system in place for recovering the loans. 

    Fourthlarger systemic issues will not be addressedA bad bank does not address the structural weaknesses in public sector banks such as management etc. 

    For these reasons, many economists including the former RBI Governor opposed the establishment of Bad Bank in India. 

    Solutions: 

    First, laying out a clear road map for Bad Bank is crucial. Government can address the issue in the upcoming budget session. 

    Second, Exploring the models suggested by former RBI Deputy GovernorViral AcharyaHe suggested two types of Bad banks. The possibility of these two models can be explored before setting up of Bad Bank. The models were: 

      1. Private Asset Management Company (PAMC)– This model is suitable for stressed sectors where the assets are likely to have an economic value in the short run, with moderate levels of debt forgiveness.  
      2. National Asset Management Company (NAMC) This is for the sectors where the NPA problem is in excess capacity and also of economically unviable assets in the short to medium terms. 

    The government can roll out the Bad Bank for the PAMC to instil public confidence and assess the performance of Bad banks and later can extended to NAMC category. 

    Third, K V Kamath Committee also suggested to set up Bad bank to revive sectors such as Trade, Textile, NBFCs, Steel and construction, etc. 

    Way forward: 

    The Problem of NPA is huge in India. Without reducing the problem of NPA India cannot become a trillion-dollar economy. The UK Asset Resolution (UKAR), a bad bank has recovered nearly 50 billion pounds of loans in UK. So, the Bad Banks is key to reduce the NPA’s, and it is high time for India to follow the path. 

    Important Concepts

    NPAs: A loan whose interest and/or instalment of principal have remained ‘overdue ‘(not paid) for a period of 90 days is considered as NPA. 

    Stressed assets = NPAs + Restructured loans + Written off assets 

    Restructured asset or loan: These are assets which got an extended repayment period, reduced interest rate, converting a part of the loan into equity, providing additional financing, or some combination of these measures 

    Written off assets: These are assets which the bank or lender doesn’t count the money the borrower owes to it. The existing shareholders face a total loss on their investments unless there are buyers in the secondary market who may ascribe some value to these. 

  • 5G technology in India – importance, challenges and solutions

    Synopsis: 

    More than 40 telecom operators in the World have already launched 5G technologies. India being the 5th largest economy in the world has not yet launched the 5G technology. Is it high time to launch 5G services in India or India still have time to catch up with the technology? 

    click here to read about what is 5G technology?

    Present Status of 5G in India: 

    Department of Telecommunication (DoT) in 2017 setup 5G steering committee headed by AJ PaulrajThe committee submitted the report and suggest important steps. In 2018, India planned to start 5G services but it has not yet materialized. 

    All the private telecom players urged the DoT to lay out a road map of spectrum allocation and 5G frequency bands. 

    Reliance Jio plans to launch an indigenously built 5G network in the second half of 2021And also, to be ready for deployment once the networks are in place. 

    The government for its part also working on creating a corpus of Rs 500 crore dedicated exclusively for the research and development of 5G technology in India. 

    Recently, The Department of Telecommunications (DoT) has sought opinion about the sale and use of radiofrequency spectrum over the next 10 years, including the 5G bands from the experts. 

    Importance of 5G Technology: 

    5G will bring with High speed and ultra-low latency will revolutionise government effort in promoting digital India. 

    First, Minimum Government and Maximum Governance: Better speed and connectivity will reduce the redtapism and enhance speedy and better implementation of projects and policies. This will various government missions such as smart cities mission, etc. 

    Second, Ultra-Low latency in 5G services (time taken by a network to respond) will help in improvement in the logistics and shipping sector and also reduces the overall cost of goods and services. 

    Third, Employment generation: 5G technology will open a new horizon of opportunity for new device manufacturers and application developers. Thus, more job opportunities will be created and it will help in the inclusive growth of the nation. 

    Fourth, Enhanced network coverage: This will enhance network performance and support during limited access or absence of mobile networks. The small cell concept used in 5G will have multiple advantages of maximum data transfer, better cell coverage, cloud access network and low power consumption etc. This will help in reducing the digital divide in India. 

    Fifth, 5G will provide enhanced Security: 5G will enhance security surveillance, better coordination among various agencies. The closed-circuit cameras will provide highquality real-time video for security purposes. 

    Sixth, 5G will revolutionize Industrial Growth: The future of industries will greatly depend on smart technologies like 5G for efficient automation, safety, maintenance, tracking, smart packing, and energy management. 

    Seventh, 5G will improve Agricultural applications: 5g can be used for smart farming in the future. Such as combining smart RFID sensors and GPS technologies, farmers can track the location of livestock and manage them easily. Smart sensors can be used for irrigation control, access control and energy management. 

    Eighth5G will improve healthcare and missioncritical applications: Scientists are working on smart medical devices such as remote surgical machines, Smart medical devices, etc.  

    Challenges faced by India in introduction of 5G technologies: 

    First the major question of need and viabilityTelecom operators are facing a financial crisis and have a combined debt of Rs 4 lakh crore. Apart from that, they are still trying to fully monetise 4G servicesThe introduction of 5G will involve a heavy upfront investment and have a long payback period. Thus, the viability of 5G after the introduction is a major challenge. 

    The Second challenge in the 5G deployment will be the pricing of the spectrum. DoT will price the spectrum but heavy upfront investment associated with 5G technologies will increase the price of the spectrum. But the telecom operators with stressed balance sheet might not have that much capital to invest in the 5G technologies and spectrum.  

    Third challenge associated with 5G is the technological and operational challenges, 

      • Extensive fiberisation requirement: Most operators at present have about 20-25% fiberisationBut, a tru5G experience will require up to 80% fiberisation this also involves investment. 
      • The antennae need to be upgraded at every site and also require an entirely new orchestration layer to achieve the critical feature of 5G network slicing. 

    Fourth, the threat to national securityChina is preparing to dominate the world by rolling out its 5G technology warfare across countries. By deploying the 5G in India without indigenisation of technology will make India vulnerable to China. This will make the data of individuals, groups or even security agencies at risk. 

    Lastly, diverting the traffic from 4G to a more efficient 5G is also a challenge. As the AJ Paulraj committee pointed out that older generation technologies will remain for almost 10 years after the 5G deployment. 

    Solutions for faster implementation of 5G technologies in India:

    India needs to fast the pace of its 5G implementation as technology is critical to India’s digital ambitions. 

    First, India needs to introduce the spectrum policythe policy should focus on incentivising heavy investment in 5G, including long-term supportand technology-neutral spectrum licences, instead of trying to look for reaping profits right away. 

    Second, India needs to create an ecosystem capable of leveraging 5G, Like skilled manpower, technology, R&D and investment, etc. 

    Third, India has to work on Indigenous 5G technologyIoT platforms not only for military applications but also for civilians to avoid any 5G warfare and data threat in the future. 

    Fourth, India has to Implement the recommendations of 5G steering committee. The important recommendations are:  

      • Three phased implementation of 5G technology in India 
      • Early adoption of 5G technologies to fast-track India’s embrace of 5G’s benefits. 
      • Setting up of Standing Committee with five-year term to advice on building Spectrum Technology Infrastructure. 

    Way forward: 

    The shift from 4G to 5G is not incremental, but transformational. Skipping of 5G is not a choice India can afford. The economic impact of 5G in India is expected to be over $1 trillion by 2035 according to the report of KPMG. The Sooner the deployment of 5G in India is the better for India. 

  • Kalapani territorial dispute between India and Nepal resurfaced

    Synopsis:

    Kalapani territory is one of the major disputed border areas between India and Nepal. But the dispute is not yet resolved by mutual terms and usually resurface time and again. In this article, you can read about the details of the dispute and the steps that India should take.

    Introduction: Present development

    Nepal has raised the Kalapani boundary dispute during the recent Joint commission meeting with India.

    Dispute intensified in November 2019, when India published a revised political map after the reorganization of J&K, depicting Kalapani as the region of India.

    Nepal immediately issued an objection to the map. Nepal government released a map mentioning Kalapani -Lipulekh- Limpiyadhura as a territory of the Darchula district of Sudurpashchim province of Nepal.

    About Kalapani territory

    Kalapani is the eastern most region of the Pithoragarh district of Uttarakhand, administered by India.

    It is located at the China-Nepal-India tri-junction and is a strategically important area. So Kalapani was regarded as an ‘observation zone’ for troops. For example, by stationing Indian troops at Kalapani, India can observe the movement of the Chinese troops and push them back if required.

    Apart from that, Kalapani serves as an important pass for the Kailash Mansarovar route.

    Since 1962, Kalapani has been guarded by the Indian security forces. But According to Nepal, King Mahendra with the helping tendency offered Kalapani to India temporarily for security purposes during the 1962 India-China war.

    This debate intensified in the 1990s after Nepal restored its democracy.

    What is Kalapani Dispute? Historical aspects and conflicting claims by both the countries

    The key reason for the Kalapani dispute is the disagreement between India and Nepal over the origin of River Kali, flowing through Kalapani region.

    British India signed the Treaty of Sugauli with the Kingdom of Nepal after the Anglo-Nepalese War in 1816. In this treaty, they demarcated the Kali River as Nepal’s western boundary with British India.

    But the source of Kali has become a main cause of contention.

    River Kali is known as ‘Kali’ at the upper reaches, ‘Mahakali’ at the middle portion and ‘Sarjoo’ or ‘Gogra’ at  the lower areas. This aggravates the confusion about where it belongs

    The two contrasting views:

    Nepal’s stand:

    Nepal was of the view that the river which flows to the west of Kalapani is the main River Kali. They also believe that River Kali was originating at either Limpiyadhura or the nearby Lipulekh pass, which are both within the Nepalese territory.

    India’s stand:

    • India believes that the River Kali originated from a smaller rivulet named Pankhagad. It was lying on the southern portion of Kalapani. Hence it is the true border, and the territory  was lying in India.
    • The revenue and administrative records of the nineteenth century showed Kalapani as a part of India.
    Other territorial disputes between India and Nepal

    The disagreements between India and Nepal are not limited to Kalapani but also the other areas like Lipulekh, Limpiyadhura, and Susta;

    Susta region:

      • It is a fertile area consist of alluvial soil located in the Terai regions West Champaran district, Bihar  of India.
      • Susta region is located on the banks of the Gandak river. The Gandak river is also called as the     Narayani river in Nepal.
      • During the 1816 Treaty of Sugauli, the west side of the Gandak river belongs to Nepal and the Eastern part of the river belongs to India.
      • But due to frequent change of course by the Gandak river, the Susta region at present belongs to the Eastern part (I.e., belongs to India). This is not accepted by Nepal.

    Lipulekh and Limpiyadhura region:

      • Both Lipulekh and Limpayadhura (Limpiya pass) located on the Nepal-Tibet border
      • Lipulekh Pass connects the Indian state of Uttarakhand with the Tibetan Autonomous Region of China. Lipulekh is the shortest route to reach Taklakot, a Tibetan township of China.
      • Nepal claims that the Indian army has encroached on both regions during the 1962 territorial offering of King Mahendra.
    Solutions:

    First, In the 1980s, both countries set up a Joint Technical Level Boundary Working Group. It succeeded in the demarcation of all territories except Kalapani and Susta. Both governments have to create such a joint       working group to resolve the dispute.

    Second, establishing a permanent mechanism to reduce the disputes further so that  the disasters caused by the rivers and floods in the regions of India-Nepal can be mitigated effectively.

    Third, India has to convey to Nepal’s leadership about the friendly environment that 6 to 8 million Nepali   citizens living in India and the benefits of open borders enjoyed by citizens of both countries.

    Fourth, Mutual respect is the key: The Nepal government has to broaden the view and has to stop the territorial nationalism and pulling out the China card whenever they negotiate with India.

    Way forward:

    The India-Nepal relationship is a unique relationship, built by friendship and cooperation with cultural and civilizational links. The border dispute is one of the important issues to solve to take ahead India and Nepal relations to another level. But to be successful forgetting the mistakes and claims of past along with a fresh start is key to both the countries.

  • WhatsApp Privacy policy Issue and Data protection in India
    Context:

    The recent WhatsApp privacy policy attracted widespread criticism among various sections of society for its latest privacy policy. Due to severe protests, WhatsApp has issued clarification related to its policy. But there is a wider concern about data protection in India.

    Click here to read about the new Whatsapp privacy policy

    What is the clarification WhatsApp has issued?

    In its latest clarification, WhatsApp is trying to differentiate between “messages with friends or family” and “messages with a business”.

    Whatsapp says that the latest changes only affect the “messages with a business”. Policy regarding “messages with friends or family” will remain the same.

    In its clarification WhatsApp has issued the following statements:

      • Personal messages are protected by end-to-end encryption and neither accessed nor heard by WhatsApp or Facebook.
      • No log of personal messages or calls has been maintained due to “privacy and security risk”.
      • Location shared by users are also protected by end-to-end encryption and cannot be seen by WhatsApp or Facebook.
      • Any user’s contact is not shared with Facebook or any other App.
      • All the communications within WhatsApp groups are end-to-end encrypted and are not shared with Facebook for Ads.
    How business messages are different?
      • Businesses on Facebook will be able to create Facebook shops to create an online store and interact with the users through WhatsApp.
      • WhatsApp will soon offer businesses with Facebook’s hosting services to manage their communication with users.
      • On these hosting services, Businesses will soon be provided with the facilities to manage WhatsApp chats with their customers, answer questions and send information like purchase receipts.
      • Businesses will be allowed to use the above information for their marketing, including ads on Facebook.
      • However, Businesses using Facebook’s hosting services will be labelled, to make the user aware of what follows.
      • If the users are interacting with the businesses on WhatsApp for shopping or other purposes, their shopping activities will be shared with Facebook to personalise their experience on the related ads on Facebook and Instagram.
    What is the Privacy Policy in EU?
      • Privacy policies of different countries put different types of restrictions on businesses. EU’s General Data Protection Regulation (GDPR) provides much more control to the users on their personal information shared on the online platforms.
      • While in the EU also, WhatsApp privacy policy talks about sharing information with Facebook, but users have an additional right “Managing and Retaining Your Information”.
      • As per WhatsApp’s own policy for EU, Users there can access, rectify, port, and erase their information.
      • They can not only restrict or object to a certain type of information used by the platform but also can withdraw their consent to WhatsApp for processing of data.
    How data is protected in India?   

    In Puttaswamy v India (2017) case, privacy was established as a fundamental right. In other cases, MP Sharma v. Satish Chandra (1954) and Kharak Singh v. Uttar Pradesh (1962), as well, Privacy rights were upheld by SC.

    As India has not implemented the Personal Data Protection Bill, there is no control over how user data will be processed by tech companies.

    Click here to read about the challenges of Personal Data Protection Bill.

    Apart from this IT Act 2000, and its amendment in 2008 deal with data protection to some extent.

      • Information Technology (Reasonable Security Practices and Sensitive Personal Data or Information) Rules, 2011 issued under the Information Technology Act, 2000, provides a measure of legal protection of personal information
      • Breach of data privacy is punishable under Section 72-A of the IT Act. The Act Penalises the offender for three year imprisonment or a maximum fine of Rs 5 lakh.
      • But this provision is only applicable to corporate entities not to individuals.
      • Rules are restricted to sensitive personal data — medical history, biometric information, and sexual history, among other things.
    Way forward:

    Justice BN Srikrishna committee report talks about three approaches to data protection and a draft data protection bill.

      1. The US model of laissez-faire approach: The USA does not have an overarching data protection framework.
      2. European Model of GDPR: Provides control of personal data in the hands of the data generators (Users)
      3. China’s model of protecting National interests: China created a national law in 2017 which contains top-level principles for handling personal data.

    Though WhatsApp’s privacy policy is relaxed to some extent it is not perfect. This might be the first of many such privacy guidelines by the companies operating in India. The solution lies in the faster enactment of the Personal Data Protection Bill and the successful implementation of the Act. It is high time the government should enact the same.

     

     

  • India at the UN – challenges, significance and way forward

    This article is based on the recent Indian Express article India at UN high table.
    Context

    Recently India has been elected as a non-permanent member to UN Security Council for the 8th time.

    The United Nations is the most powerful International Organisation that ever existed in the history of mankind. 193 members of the UN have participated and contributed their part to make the UN a truly global organisation. India as a country and a member have participated and contributed significantly to the United Nations.

    About United Nations (Source)

    •  The name “United Nations”, was coined by then US President Franklin D. Roosevelt in the Declaration during the peace declaration of Second World War, where the representatives of 26 nations pledged their Governments to continue fighting together against global challenges.
    •   As an International Organization, The United Nations was founded in 1945.
    •  The powers vested in the UN Charter facilitate the United Nations to take action on a variety of global issues such as peace, security, climate change, sustainable development, human rights, disarmament, terrorism, humanitarian and health emergencies, global governance, food production, etc.
    •  The Six major organs of UN are
    1. UN General Assembly (UNGA)
    2. The UN Security Council (UNSC)
    3. Economic and Social Council (UN ECOSOC)
    4.  International Court of Justice (ICJ)
    5.  UN Secretariat
    6. Trusteeship Council

    All the six were established in 1945 during the formation of the UN.

    • Under the UN Charter, the Security Council has primary responsibility for the maintenance of international peace and security.  The UNSC has 15 Members of which 5 are permanent members (China, France, Russia, UK, and the U.S.) and other 10 are non-permanent members elected for 2 year terms. Each Member has one vote and the permanent members have Veto Powers.

    History of India’s participation at the UN:

    India is a founding member of UN. India signed the UN charter on 1945. Since the Independence the participation of India in the UN is huge and highly commendable. The participation can be divided into 3 Phases.

      1. During Cold war period (1947 to 1990)
      2. A decade of economic reforms in India (1990-2000)
      3. The phase of New India (Since 2000’s)

    During Cold war period (1947 to 1990):

      • In 1950-51, India, being a  President of UNSC, India presided over the adoption of resolutions asking for a cessation of hostilities during the Korean War and also for assisting the Republic of Korea.
      • In 1967-68, India co-sponsored a Resolution for extending the mandate of the UN mission in Cyprus.
      • In 1977-78, India was a strong supporter of Africa and spoke against apartheid, and also raise concerns for the independence of Namibia.
      • In 1984-85, India was leading supporter in the UNSC for the resolution of conflicts in the Middle East, especially Palestine and Lebanon.

    A decade of economic reforms in India (1990-1992):

      • India suffered a humiliating defeat in the hands of Japan in the 1996 contest for a non-permanent seat in the UNSC.
      • India stood against indefinite extension of the Non-Proliferation Treaty(NPT)in 1995, and rejected the backdoor introduction for adoption of the Comprehensive Test Ban Treaty(CTBT) in 1996
      • With the objective of providing a comprehensive legal framework to combat terrorism, India piloted a draft Comprehensive Convention on International Terrorism (CCIT) in 1996.

    The phase of New India (Since 2000’s)

    India’s Economic policies and globalization strengthened India’s role and negotiating powers in the UN.

      • Gradually India became a strong voice for the developing world, peacekeeping, counter-terrorism, and concerns about the problems in the African nations.
      • During the 2011-12 term, India chaired the UNSC Committee concerning Counter-Terrorism, a Working Group concerning the threat to international peace and security by terror acts, and Security Council Committee concerning Somalia and Eritrea.
      • India worked closely with its supporters in the UNSC and in May 2019 India succeeded in placing Pakistan-based terrorist Masood Azhar under the UNSC’s 1267 Sanctions Committee concerning al-Qaida and ISIS and associated individuals and entities, The action which was pending since 2009.

    Significance of India to the UN:

      • Firstly, India is the 3rd largest economy in terms of GDP (PPP) and the 2nd most populous nation.
      • Secondly, India is a founding member of the UN, and India has been a  non-permanent member of the UNSC for the 8th term and also a member of other international structures such as MTCR, The Wassenaar Arrangement, etc.
      • Thirdly, India enjoys the backing of major powers including four permanent members other than China and also the African Union, Latin America, Middle Eastern countries, and other LDCs from different parts of the globe.
      • Fourthly, India provides large numbers of soldiers to the UN for peacekeeping missions,
      • Fifthly, India is a responsible nuclear nation, which has stated a clear no-first-use policy and also followed the same in spirit and soul.
      • Sixthly, India’s success in space technology is another point for its candidature.
      • Lastly, India has been a responsible power and it has contributed significantly to global peace efforts and Humanitarian and Disaster Relief measures in various countries such as Pakistan, Yemen, South Sudan and the majority of the South Asian nations, etc.

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    What are the Challenges to India at the UN?

    • Firstly, the China Factor: China does not want India and Japan to join the UNSC as permanent members. China is against India for reasons such as
      • On the issue of cross-border terrorism, China continues to protect Pakistan.
      • China tried to get the UNSC to focus on India’s constitutional changes in Kashmir.
      • China uses India’s non-membership in the Nuclear Proliferation Treaty (NPT) and Nuclear Suppliers Group (NSG) as the reasons to deny India’s entry into UNSC.
    • Secondly, Challenge to multilateralism– There is a rift between the permanent members of the Security Council. For example,
      • China has stepped in to take advantage of the West’s retreat from multilateralism and China is also flouting international law and order.
      • BREXIT has shown that nationalism still remains a strong factor in Europe.
      • The recent Coup in the USA and the global wave of right wing politics failed to reach a consensus on critical issues.
    • Thirdly, change in Contemporary geopolitical realities:The global power matrix has moved towards multilateralism but the UNSC and UN’s power matrix concentrated on select countries.
    • Fourthly, under-representation of Countries: The regions like far East Asia, South America, Africa have no representation in the permanent membership of the council which can push for reforms at the UN level.

    What are the solutions for India?

      • Firstly, making the UN effective. India needs to carve out a larger room for itself and try to create an atmosphere of cooperation as done by the US and USSR on nuclear proliferation.
      • Secondly, making the UN more representative. India should push its efforts in partnership with Brazil, Germany, and Japan (G4 countries), to expand the UNSC.
      • Thirdly, India has to deal with China’s growing enmity: By presenting the real facts on the issue of cross-border terrorism and the constitutional changes in Kashmir.
      • Fourthly, India should renew its ties with African Nations:  60 percent of UNSC documents and 70 percent of its resolutions are about peace and security in Africa. So there is an opportunity for India to deepen ties on peace and security issues in Africa at bilateral, regional, and global levels.
      • Fifthly, P5 has to be realistic: The UNSC’s Permanent members have to accept the present world’s challenges and the significance of co-operation at multi-level, especially the COVID-19 pandemic exposed the fault lines and the need for a multilateral collective solution.

    Way forward:

    UN should not merely be an institution but also an instrument for positive change. But the UN as an institution for conflict resolution has not developed as desired and India along with other nations should try to reform the UN structure.

     

  • Supreme Court Judgment on Central Vista Redevelopment Project

    Supreme Court pronounced 2-1 judgment and cleared the Central Vista Redevelopment Project.

    Petition challenging the Centre’s change-of-land-use notification of March 2020 for 86 acres of land was filed in SC.

    Following statements were put forward by the majority judgment and dissenting judge:

    Central vista judgment

    More about judgment

    SC Court in its judgment held that it found no issues in the following orders and found them as per laws and procedures.

    • “No Objection” by the Central Vista Committee (CVC);
    • “Approval” by the Delhi Urban Art Commission (DUAC) as per the DUAC Act, 1973;
    • “Prior approval” by the Heritage Conservation Committee (HCC) under Building Byelaws for Delhi, 2016.”
    • Exercise of power by central government under DDA (Delhi Development Authority) Act, 1957.
    • Environmental Clearance (EC) recommendation for the project by the Expert Appraisal Committee (EAC).

    SC in its judgment also made a statement regarding the limits on its powers. As per the bench, development policies of the Government of the day must be debated in the Parliament. The role of the Court is limited to examining their constitutionality and not to govern.

    Further, it asks for the creation of smog towns and deployment of smog guns to mitigate the pollution from construction materials and directs that waste management at the site be subjected to constant monitoring. 

    What were the issues raised in the petition challenging Central Vista Project?

    Supreme Court was hearing the petition on the following main grounds, put forward by the petitioner:

    1. Change of land use: DDA in its notification made changes in the land use to facilitate the use of public open spaces such as a district park and children’s play area for the use of government office.
    2. Violations of municipal law: consultation with Delhi Urban Commission (DUAC) had to be completed at the plan conception stage itself.
      1. In the absence of a comprehensive consultation, the approvals were granted without proper application of mind.
    3. Violations of environmental law: Parliament building was granted environmental clearance from the Ministry of Environment, Forests & Climate Change without any Environment Impact Assessment (EIA).
    4. Change in heritage Status: Heritage Conservation Committee allowed the demolition of post-independence constructions by redefining the ‘Heritage status’.
    5. Central Vista Committee(CVC): As per the petitioner, CVC was set up to rush the approvals and it consists of the members, who were proponents of the central vista project. Thus, there is an apparent conflict of interest. 

    For more Info. on Issues: Issues with Central Vista Project

    What is Central Vista and Central Vista Redevelopment Project?

    History of Central Vista development

    • Britain’s King George V on December 12, 1911, at his coronation announced the transfer of the seat of the Government of India from Calcutta to the ancient Capital of Delhi.
    • This 20 years-long project of Central Vista development was led by architects Edwin Lutyens and Herbert Baker. It was completed in 1927 and inaugurated by Viceroy Lord Irwin.
    • Central Vista is 3.2 kilometre area in Delhi housing Parliament House, Rashtrapati Bhavan, North and South Blocks, Rajpath, India Gate, National Archives and the then princes’ houses around India Gate.
    • In the 1962 Master plan of Delhi, site was declared a heritage precinct as an “important site to meet the aspirations of a rich culture”.

    About the Central Vista Redevelopment Project

    • Project was announced by Ministry of Housing and Urban Affairs in 2019 as a redevelopment project to give a new identity to the ‘power corridor’ of India.
    • Redevelopment project includes
      • Construction of a new parliament next to existing one,
      • Prime minister and vice-president’s residences along with 10 building blocks that will accommodate all government ministries and departments.
      • Revamping of the 3-km-long Rajpath — from Rashtrapati Bhavan to India Gate.
    • Project will change the structure of the 86-acre area in Lutyens’ Delhi that shows off India’s iconic buildings such as South and North blocks of Central Secretariat, Parliament House, and Rashtrapati Bhavan.
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      Parliament Complex
    • Complete project is estimated to cost around Rs. 20,000 crores. Of this amount, around Rs. 1000 crores is allocated for construction of Parliament Building.
    • It will be a triangular-shaped Parliament building and spans across over 64,500 square metres.
    • It will be able to accommodate 336 more Lok sabha members and 139 more Rajya Sabha members than the current capacity i.e. 888 Lok Sabha members and 384 Rajya Sabha members.
    • Building is projected to complete by 2022, for which Tata Projects won at Rs. 861.90 crores.

    Why the Central Vista redevelopment Project has been planned?

    • Firstly, the Current Parliament was built in 1927 to house the legislative council and was not intended to house a bicameral legislature that the country has today. The current building will be under more stress when the number of seats to Lok Sabha and Rajya Sabha are raised.
    • Secondly, the present Parliament House signifies an imperial origin, whereas India is a successful citizen-led democracy. Thus, the present parliamentary building is not in accordance with the aspirations of independent Indian citizens and the new building will stand out as an institution created by 130 crore citizens.
    • Thirdly, there are international examples of building new parliamentary structures after gaining independence.
      • The Capitol Building in the USA was constructed within 25 years of the country’s independence.
      • In Brazil, the National Congress Building was constructed, almost 70 years after Independence, in 1960. 
    • Fourthly, Present Parliamentary complex was built by the British on their own patterns and designs. New building’s design and interiors will capture Indian values and the rich diversity of our regional arts, crafts, textiles, architecture, and culture.
    • Fifthly, World history proves that Public infrastructure projects playing a key role in reviving economies in distress. For ex; the Tokyo Tower in Japan, built after World War II, provided employment to thousands of workers, instilled a greater sense of nationalism, and contributed to the resurgence of the Japanese economy.
    • Sixthly, the existing building does not conform to fire safety norms and is not earth quake proof. Water and sewer lines are also haphazard and this is damaging its heritage nature. 2001 Parliament attack is a fit example questioning the safety.

    Although SC has given a green light to Central Vista Project, it also underlined the need for the significance of transparency i.e. if the relevant information is not placed in the public domain, public will be ill-equipped to understand the need and rationale behind such projects.

    Government should become more transparent and try to bring in a consultation process at the initial stage of the project developments to maintain a level of confidence among people of the country.

  • India – Nepal relations- Present challenges and solutions

    India – Nepal relations– Present challenges and solutions 

    Sources: Pax Indica, The DiplomatRSTV Big Picture 

    This article on India Nepal relations – present challenges and solutions, has been developed based on The Hindu editorial Nepal in turmoil”. 

    India and Nepal share a unique relationship, both of them share friendship and cooperation underpinned by linguistic, cultural and civilizational links, along with a wide range of commercial and economic ties, and above they are linked with extensive people-to-people contacts. 

    Historical relationship between India – Nepal: 

    Firstly, the bedrock of the India-Nepal relationship was the India-Nepal treaty of Peace and Friendship of 1950. Under this treaty, Nepal became the only country whose nationals required no passports to cross into India. 

    Few important information of India-Nepal treaty of Peace and Friendship 1950: 

      • India-Nepal Treaty was signed after Nepal feared the Chinese threat as the Chinese occupied TibetThe treaty has an explicit reference to threats from third countries, which both countries would tackle by cooperation. 
      • The treaty extended rights to residence, employment and purchase of property to each other’s citizens reciprocally – in other words, it extended ‘national treatment’ by each country to the other’s citizens. 

     Secondly, Buddha’s birthplace is in Nepal and also Nepal is the only other Hindu majority country in the world. So cultural and religious visits between India-Nepal is so strong. 

    Thirdly, the Ministry of External Affairs termed India-Nepal relations as Roti-Beti ka Rishta (Relationship of food and marriage) as the open border enabled kinship, familial ties in the terai region. There are six million to eight million Nepalis who live and work in India, according to Indian home ministry estimates. 

    Fourthly, the 1996 trade treaty resulted in the phenomenal growth of bilateral trade, which witnessed a sevenfold increase in a decade (Nepal’s exports to India increased eleven times and Indian exports to Nepal increased six times).  

    Fifthly, the 2009 revised trade treaty has retained the positive features of the 1996 treaty and further enhanced bilateral trade between India-Nepal. 

    Sixthly, Defence and Humanitarian relations were provided greatly by India, as Nepal is landlocked and geographically prone to disasters being situated in the Himalayan region.  

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    What are the challenges in India-Nepal relations? 

    India-Nepal relations often swung between two extremes much quickly. There are few underlying reasons for it. 

    Firstly, the Constitutional question on Madhesi’s: In general, Madhesi’s section of People lives throughout the southern part of the Terai region and has much closer ties with IndiaThe challenges in this regard are, 

      • The political rights of Madhesi’s section of people were diluted in their new Constitution promulgated in 2015 which led to wider protests and blockade in Nepal led to the blocking of oil and other essential supplies. 
      • Nepal government accused India of supporting Madhesi’s and stated India is interfering in the internal matters of Nepal. Nepal raised the issue in a “trade blockade” at the UN in October 2015. But Madesi’s protest was a spontaneous movement and it had nothing to do with India. 
      • One of the foremost scholarsProfessor S.D. Muni points out major challenges with the Nepal government as, 
        • India’s fears that a Constitution drafted under assertive Maoist leadership may not be compatible with the democratic profile of Nepal. 
        • India’s also fears that the Maoists were inclined to and capable of changing Nepal’s domestic power equations. 

    The recent decision of Nepal Prime Minister dissolving the lower house has created  a new political crisis altogether.  

    Secondly, China’s closeness with Nepal and the Influence of China in India-Nepal relations is a cause of concern.  

      • Nepal is a landlocked state that has relied much on India for major supplies, transit and transport. India-Nepal Blockade changed the perception completely.  
      • The Nepal earthquake in 2015 was the perfect time for China to make massive investments in infrastructure like Tibet Railway, many highway projects, access to Chinese ports etc. By the end of 2016, China became the major assistance provider of Nepal. 
      • Hydel co-operation, Fuel and Humanitarian assistance from China has increased many folds. For example, China pledged to provide 1.4 million liters of fuel and planned to construct 750 MW WestSeti Dam project.  
      • Nepal also supports China’s Belt and Road Initiative and the China-Nepal relations so far is stable to some extent. 

    Thirdly, the boundary dispute between India-Nepal: About 1850 km boundary line between India-Nepal faces two major boundary disputes.  

      1. Kalapani dispute: Kalapani is the disputed territory in the Uttarakhand state of India. The British government has set the origin of River Kali as the western border of Nepal. But the origin of the river Kali is disputed between India-Nepal. While India uses the newer British survey, Nepal wants the area to be demarcated based on the older British survey.
        New map of Nepal was notified in June 2020 with Kalapani in Nepal (Source) 
      2. Susta Dispute: Susta is another disputed territory located in the Terai regions of India. (Source) 

    Fourthlythe challenges relating to the open border. The border is notoriously porous. Being provided special status to Nepal, India’s internal security faced many challenges such as 

      • The Pakistani militants using Nepalese territory as a hideout and base for infiltration into India. The Ministry of Home Affairs in its Annual Report 1999–2000 highlighted this Pakistani involvement in Nepal and its security implications in India. 
      • The Nepalese Maoists have extended support and cooperation to the Indian Maoists and carving out a Compact Revolutionary Zone, a ‘Revolutionary Corridor’ spreading from Nepal through Bihar and up to Andhra Pradesh. 
      • Apart from these the open borders have also created challenges such as pumping fake Indian currency notes, human trafficking especially young girls and women, cattle smuggling, etc. 

    Thus, India’s external and internal challenges converge, and make ties with Nepal of extreme importance and swung between extremes. 

    What are the solutions to improve India-Nepal relations?

    Firstly, focus based approach is necessary not only in India-Nepal relations but also for other countries in the region by giving more focus towards Neighbourhood first policy 

      • India should leverage the strategic influence, faster and effective implementation of infrastructure and development projects in Nepal.
        For Ex. Finalising the projects such as Pancheshwar multipurpose project and faster completion of cross-border rail projects such as Jayanagar-BijalpurBardibasJogbani-Biratnagar. 
      • In 2018 Indian PM asked to shift focus on 5T’s (Tradition, Trade, Tourism, Technology and Transport) to boost the relations. 

    Secondly, India can focus on “aid diplomacy to reduce the trust deficit and also has to continue with post-earthquake reconstruction assistance. Later deepening co-operation in areas like trade, water resources, energy co-operation, etc. 

    Thirdly, regarding China’s influence, Experts believe that Nepal’s nearest ports will always be in India and the Gangetic plain will remain its largest market. This is because,  

      • The economic feasibility of Chinese trans-Himalayan trade and the infrastructure projects are low, especially when the Himalayan state Bhutan supports India and Nepal is the only other Himalayan state. 
      • Though China provides access to Nepal for its seaports, they are situated more than 3,000 km away. 

    All this can sum up by the words of geostrategistBrahma Chellany. He said, “China can replace India as Nepal’s main provider of essential supplies only by moving the Himalayas southward. But the ability of the Chinese in project implementation and financial assistance cannot be under estimated. 

    Fourthly, establishing a permeant mechanism to reduce the disasters caused by floods in the regions of India-Nepal. 

    Fifthly, Mutual respect is the key: The Nepal government has to move away from narrow terms and shift focus towards broadening and inclusion of demands from all sections of society in the ConstitutionNepal also has to stop the rhetoric on territorial nationalism and pulling out China card whenever they negotiate with India. 

    Way forward:  

    India-Nepal relations have all the potential to move ahead and become mutually reliable commercial and economic ties, and extensive people-to-people ties only when India and Nepal forget the avoid past mistakes and move ahead to become sustainable. 

  • Right to Protest in India

    Context: Supreme Court in its recent order stated that farmers have a constitutional right to continue with their protest.

    More about judgment

    • Petition: Order was delivered on the petitions seeking removal of farmers protesting at the borders of Delhi.
    • Order and suggestions
      • Supreme Court in its order upheld the farmer’s right to continue their protest in a peaceful manner as a constitutional right subject to public order.
      • No restriction will be placed in the exercise of such rights as long as it is non-violent and does not result in damage to the life and properties of other citizens.
      • SC suggested farmers engage in talks with the government for positive conclusion and formation of an “impartial and independent committee” of experts in agriculture to hear both farmers and the Union government on the laws.

    A few examples of important peaceful protests in India  

    • Power of peaceful protest was taught to the country by the father of the Indian nation, Mahatma Gandhi, against the mighty British Empire.
    • People not only signed writ petitions but staged dharnas, held large public meetings, peaceful protests and demonstrations and even, for instance in Gandhi’s satyagraha, launched civil disobedience movements.
    • After Independence, many peaceful protests took place, but one of the biggest were protests during an emergency in the 1970s when democracy in India was threatened due to authoritarianism of government.
    • Movements such as Chipko movement (1973) in the upper Alaknanda valley took place for forest conservation.
    • During the movement of Anna Hazare against corruption, thousands participated in the peaceful protests.

    What are the Constitutional provisions ensuring the right to protest?

    The right to protest, to publicly challenge and force the government to answer, is a fundamental political right of the people that flows directly from a democratic reading of various provisions of Article 19.

    Right to Protest is protected under Article 19(1) (a), Article 19(1) (b) and Article 19(1) (c) of the Indian Constitution.

    1. Article 19(1) (a) guarantees the freedom of speech and expression;
    2. Article 19(1) (b) assures citizens the right to assemble peaceably and without arms.
    3. Article 19(1) (c) assures right to form associations or trade unions

    Reasonable restrictions: However, like other fundamental rights, right to protest is also not absolute and also subject to reasonable restrictions mentioned under Article 19(2) and 19(3) on the following grounds;

    1. In the interests of the sovereignty & integrity of India,
    2. The security of the State,
    3. Friendly relations with foreign States,
    4. Violation of Public order,
    5. Decency or morality or in relation to Contempt of court, defamation or incitement of an offence

    The grounds of restrictions based on Violation of public order can be reasonable only when there is evidence that protesters will incite lawless or disorderly acts and that such acts are likely to occur.

    Section 144 and right to protest in India

    • Time and again, to suppress the voice of citizens or for legitimate reasons like controlling the violent protest, the government has kept on using various tools available against protests and section 144 of Cr.PC has been the biggest such tool.
    • Section 144 authorises executive magistrates to pass “prohibitory orders” that restrict people from assembling at particular places to prevent breaches of public order or the triggering of violence.
    • Although the law has been enacted to implement the reasonable restrictions, however, Section 144 is framed in such broad and vague terms that it can be imposed by the executive anywhere to prevent the expression of dissent through public demonstrations and protests.
    • Judgments
      • In the 2012 Ramlila Maidan case, the court held that the “perception of threat to public peace and tranquillity should be real” for Section 144 to be used. The trigger cannot be “imaginary or a mere likely possibility”.
      • In Mazdoor Kisan Shakti Sangathan v Union of India, the Supreme Court held although recognised the right to protest and asked the government and police to frame guidelines but also held that the order to impose section 144 was not unconstitutional.

    Supreme Court Judgements on Right to Protest:

    • Ramlila Maidan Incident vs Home Secretary, Union of India (2012): The Supreme Court had stated that citizens have a fundamental right to assembly and peaceful protest which cannot be taken away by an arbitrary executive or legislative action.
    • Mazdoor Kisan Shakti Sangathan (MKSS) vs Union of India(2018): In this case, SC upheld the fundamental right to assembly and peaceful protest but ordered it to be regulated in such a way that they do not cause inconvenience to residents from Jantar Mantar road or the offices located there.
    • Shaheen Bagh Judgement:
      • The court upheld the right to peaceful protest against a law but made it clear that public ways and public spaces cannot be occupied and that too indefinitely.
      • The right to protest in a public place should be balanced with the right of the general public to move freely without hindrance.
      • Fundamental rights do not live in isolation. The right of the protester has to be balanced with the right of the commuter and has to co-exist in mutual respect.

    What is the significance of the right to protest?

    • Firstly, Right to protest is an essential element of democracy to bring about reforms and lead to the development of the country.
    • Second, Protesting against injustice is not only a constitutional right of the citizens but also their moral duty.
    • Third, Active exercise of Right to protest ensures people’s role as watchdogs that constantly monitors government’s acts and ensure fairness in them.
    • Fourth, it is the biggest weapon of people when the government in a democratic country becomes unresponsive and refuse to listen to them.

    Peaceful protest is a fundamental right and the lifeline of democracy, without which there would be very less accountability left with the ruling government and every citizen has to wait for the election to vent out their anger against it. But reasonable restrictions are also very important so that peaceful protests do not turn into violent and lead to loss of lives and property.

    However, it should not be made an excuse to suppress every form of protest as it is the prime duty of every government to protect the ideals of the constitution.

     

  • What are the implications of Initial NFHS-5 results?

    This article on NFHS-5 results has been developed based on the Indian Express Article under the title ‘Give children weight’ that appeared in the news on 17th December 2020.

    Situation of Nutrition in India as per NFHS-5 survey and other measures

    • As per the National Family Health Survey 2015-16 (NFHS-4), 35.7 per cent children below five years were underweight in India compared to Bangladesh (22 per cent) and Nepal (27 per cent). 38.4 per cent were stunted.
    • Now as per early estimates of National Family Health Survey 2019-20 (NFHS-5), between 2015-16 and 2019-20,  in 7 out of 10 major states for which data has been released, the proportion of underweight children increased.
    • Present data estimates stunting in 36 per cent of children and 34 per cent of children are underweight.
    • Some improvements have been seen in determinants of malnutrition such as access to sanitation, clean cooking fuels and women’s status
    • The Global Hunger Index 2020 report has given India the 94th rank among 107 countries, much behind Bangladesh, Pakistan, and Nepal.
    • As per a UN-FAO report, 194 million people go hungry every day in India, comprising about 23% of the world’s undernourished population.

    What are the implications of NFHS-5 Survey estimates?

    • Present data suggest that child nutrition in India has not progressed in last 5 years. Particularly, stagnation of stunting rates is alarming, as Height, unlike weight, cannot be reversed in short period of time and becomes permanent after a certain age.
    • Stunting in childhood is associated with serious impairments later in life, including lower school achievements.
    • Moreover, present data represent the picture before the advent of COVID pandemic. There is a high possibility that child nutrition has deteriorated as several surveys have pointed out severe food insecurity across India in 2020.
    • As per the latest survey by Hunger Watch, 2/3rd of the respondents that are adults from India’s poorest households were eating less nutritious food today than before the lockdown.
    • Mid-day meals in schools and anganwadis were discontinued after lockdown and not resumed yet. Some of the states tried to make arrangement like distribution of cash or “take-home rations”, but were not adequate.
    • Prolonged closure of anganwadis and schools might have resulted in massive disruption of routine health services — including immunisation.

    What are government initiatives for improving nutrition in India?

    • The Integrated Child Development Services provides cooked meals and take-home rations to 100 million children under the age of six, as well as to pregnant and lactating mothers.
    • The mid-day meal programme in schools takes care of the nutritional requirement of school-going children.
    • POSHAN abhiyan: It is India’s flagship programme to improve nutritional outcomes for children, pregnant women, and lactating mothers.

    What are the criticisms against government policies?

    • Central budget for mid-day meals (Rs 11,000 crore) is lower than what it was in 2014-15 (Rs 13,000 crore). Central allocation for ICDS is also lower today than it was six years ago.
    • Poshan Abhiyaan, government’s flagship programme for child nutrition, has been allocated a minuscule budget of Rs 3,700 crore.
    • In many states, on the one hand, political parties opposedinclusion of eggs in mid-day meals and take-home rations, on another hand, maternity benefit were restricted to one child per family and Rs 5,000 per child against Rs. 6,000 per child under the NFSA 2013.

    What should be done?

    The present government needs to allocate more resources for improving the nutrition level among children. The budget should have been increased or kept at the same level.

    • Revival of present structure: The forthcoming Budget, for 2021-22 should have adequate provision for increasing nutrition level in the country and Mid-day meals in schools and Anganwadi centers must be revived as soon as possible.
    • Nutritious products such as eggs with a fruit option or such for vegetarians should be included in mid-day meals and take-home rations for young children and pregnant women.
    • Maternity benefits must be extended to all children with an increase in benefits beyond outdated Rs 6,000 per child.
    • Upgradation of anganwadis: ICDS programme must be upgraded and the manpower of 14 lakh anganwadis should be utilised in a way to transform anganwadis into vibrant child development centers at the village level as been done in some southern states along with states like Himachal Pradesh and Odisha.
    • Inclusion of pulses: World Food Programme (WFP) includes 60 grams of pulses in its typical food basket, alongside cereals, oils, and sugar, and salt and according to the Global Pulse Confederation, pulses are part of a healthy, balanced diet and have been shown to have an important role in preventing illnesses such as cancer, diabetes, and heart disease. Thus, Pulses should be included in the PDS of India.
    • Access to finance and innovations: Inclusive access to finance to strengthen and expand rural supply chains is also crucial. Small landholders need access to financial resources, technology, and innovation to ensure that the produced food reaches from farm to fork.

    Present children are the future of our country and a healthy mind resides in a healthy body. As shown in the NFHS-5 survey, more than 1/4th of underweight children may prove to be the biggest obstacle in becoming a $5 trillion economy within a few years. Global economic and military superpower and require urgent attention.

  • Central Vista Project: What are the benefits and issues associated to it?

    Amid the controversies surrounding the Central Vista Project, the PM of India laid the foundation stone of the new Parliament building. Objections were raised against the project due to the land-use changes and environmental clearances issue to the project by authorities. The matter is being heard by the Supreme Court.

    In its recent order, the Supreme Court barred the government from any further activities related to the Central Vista Project and reserved the judgment. In its judgment, SC stated no construction, demolition, or chopping of trees should take place at the Central Vista project. However, SC allowed the government to lay the foundation stone of the project and carry on paperwork.

    About Central Vista Project

    The present Parliament building was inaugurated in 1927. It was having three halls, the Chamber of Princes, State Council, and Central Legislative Assembly, known as Library Hall, Rajya Sabha, and Lok Sabha respectively in the post-Independence era. Two floors were added in 1956 to accommodate the enhanced requirements.

    Central Vista project includes the construction of triangular Parliament building, common Central Secretariat and revamping of the 3-km-long vista or Rajpath — from Rashtrapati Bhavan to India Gate.

    Features of New Parliamentary building

    • New Parliament Building Complex, will be of triangular shape, spreading over 64,500 square meters with the capacity of housing 1,224 Members of Parliament. By 2024, there will be a chamber for every MP.
    • It will have a grand Constitution Hall showcasing an original copy of the Constitution.
    • The Central Vista project has a work completion deadline of 2024 and the new Parliament building complex is expected to be complete by 2022 to commemorate 75 years of India’s Independence.
    • The building will be energy efficient and accessible to all.
    • The Lok Sabha and Rajya Sabha Halls will have high-quality acoustics and audio-visual facilities, improved and comfortable seating arrangements, effective and inclusive emergency evacuation provisions, with high-level security for the members.
    • There will be Seamless access between the current and new Parliament buildings, the Chamber for Members, the Parliament Annexe, and Library buildings will form a legislative enclave, which will stand as an iconic and modern colosseum of democracy.

    What are the issues raised against Central Vista Project?

    Notification for the project was issued in April and cleared by the environment ministry’s Expert Appraisal Committee immediately when the country was suffering from COVID Pandemic. Critics called the project ill-timed with several loopholes in the approval process were pointed out.

    Lack of transparency

    • As per the reports, planning for the project is ongoing since 2015, but behind the curtains. There is no information about the tender issued or either the process followed, or the criteria for selection of companies building it. There was no exhibition of the proposed buildings was held, no data revealed, no models or drawings displayed.

    Changes in heritage status

    • Central Vista has been accorded the highest Grade 1 heritage status by the Unified Building Bye-Laws of Delhi. Grade 1 classified buildings cannot be changed, and “no intervention can be made unless it is in the interest of strengthening and prolonging the life of the buildings”.
    • However, later on, Heritage Conservation Committee made a distinction between pre-Independence and post-Independence buildings to redefine the status of ‘heritage’, allowing the demolition of post-independence constructions, built by Indian architects and engineers in the 60s.
    • It effectively, allowed the demolition and replacement of buildings like Krishi Bhawan, Udyog Bhawan and Rail Bhavan, in addition to the National Museum and the Indira Gandhi National Centre for the Arts (IGNCA). 

    Land Use Changes

    • In 2020 Delhi Development Authority made changes in the land use to facilitate the use of public open spaces such as a district park and children’s play area be changed for use as government offices.
    • Before notification, there was a 60/40 split between public/ semi-public (60 per cent) use including museums, galleries, centres of arts, national library, (the Delhi) high court, etc., and government use (40 percent).
    • After notification, it was changed to 95 percent for government use and 5 Percent for public and semi-public use.  

    Environment clearance

    • On April 22, the new Parliament building was granted environmental clearance from the Ministry of Environment, Forests & Climate Change without any Environment Impact Assessment (EIA).

    Cases filed

    • Rajeev Suri vs. the Union of India —was filed in the Delhi High Court in March 2020 against this land-use change and another petition was filed regarding violations of the heritage status of Central Vista.
    • The petitions were transferred to the Supreme Court and are now in the apex court’s domain.

    Why new Parliament complex is required?  

    • Firstly, the Current Parliament was built in 1927 to house the legislative council and was not intended to house a bicameral legislature that the country has today. The current building will be under more stress when the number of seats to Lok Sabha and Rajya Sabha are raised.
    • Secondly, the present Parliament House signifies an imperial origin, whereas India is a successful citizen-led democracy. Thus, the present parliamentary building is not in accordance with the aspirations of independent Indian citizens and the new building will stand out as an institution created by 130 crore citizens.
    • Thirdly, there are international examples of building new parliamentary structures after gaining independence.
      • The Capitol Building in the USA was constructed within 25 years of the country’s independence.
      • In Brazil, the National Congress Building was constructed, almost 70 years after Independence, in 1960. 
    • Fourthly, Present Parliamentary complex was built by the British on their own patterns and designs. New building’s design and interiors will capture Indian values and the rich diversity of our regional arts, crafts, textiles, architecture, and culture.
    • Fifthly, World history proves that Public infrastructure projects playing a key role in reviving economies in distress. For ex; the Tokyo Tower in Japan, built after World War II, provided employment to thousands of workers, instilled a greater sense of nationalism, and contributed to the resurgence of the Japanese economy.
    • Sixthly, existing building does not conform to fire safety norms and is not earth quake proof. Water and sewer lines are also haphazard and this is damaging its heritage nature. 2001 Parliament attack is a fit example questioning the safety.

    Conclusion

    Central Vista Project should be presented as the project fulfilling the aspirations of people, not something imposed on the people. All the valid concerns should be taken into account and proper assessment should be carried out to ascertain that the project will not have any negative impact.

  • Progress on Paris Climate Change Agreement: In India and world

    About Paris Agreement (COP 21)

    • As the Kyoto Protocol ultimately failed to induce significant emission reductions on a global scale, the Paris Agreement was adopted at the COP21 held in Paris.
    • It aims to strengthen the global response to the threat of climate change and specifies long-term goals regarding global average temperatures, adaptation to climate change, and finance flows

    Key differences between the Kyoto Protocol and Paris Agreement

    Component of Bharatmala PariyojanaDetails
    Economic Corridor Development• Economic corridor development program focuses on developing new corridors, in addition to existing Golden Quadrilateral (GQ) and North South-East West corridors (NS-EW).
    Inter Corridor and feeder roads development• Stretches of roads connecting more than 2 corridors are classified as inter-corridors routes, while other routes connecting to 1 or 2 corridors are termed as feeder routes.
    • These roads are expected to carry 20% of freight
    National Corridors Efficiency Improvement• It will focus on improving the efficiency of the existing corridors (GQ and NS-EW), by removing the congestion points on the corridor to improve the average speed on the corridor.
    Interventions include:
    o controlling access on the corridor
    o uniform corridor tolling
    o development of bypasses
    o ring roads
    o fly overs at choke points
    Border and International connectivity roads• 3,300 km of border roads have been identified to be built along the international border for their strategic importance.
    Coastal and Port connectivity roads• 2,100 km of coastal roads have been identified to be built along the coast of India.
    • These roads would boost both tourism and industrial development of the coastal region
    • The coastal and port connectivity roads enhancement have been synergized with the Sagarmala programme.
    Green-field expressways-• Expressways to be built close to National and Economic Corridors where traffic has breached 50,000 PCUs and there are multiple chokepoints

    Key aspects of the Paris agreement

    Goals:

    1. Temperature: hold warming below 2°C above pre-industrial levels with effective efforts to limit warming to 1.5°C
    2. Adaptation: Increasing the ability to adapt to the adverse impacts of climate change and foster climate resilience and low greenhouse gas emissions development
    3. Low Emission Finance flows: Making finance flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development

    Approach:

    Intended Nationally Determined Targets: Unlike, the Kyoto Protocol, the Paris Agreement gives flexibility to both developed and developing countries to determine their own targets. The INDCs set out each country’s plan for addressing climate change, including a target for reducing GHG emissions, and how the countries intend to achieve that target.

    Development after the Paris agreement

    1. COP22: The COP22 was held in Marrakech, Morocco in 2016 to discuss and implement plans about combatting climate change in the lines of the Paris Agreement
    2. COP23: COP 23 was held in Bonn, Germany in 2017. A major outcome of the COP was the Talanoa Dialogue. It is an inclusive and participatory process that allows countries, and non-Party stakeholders, to share experiences and showcase best practices in order to urgently raise ambition in nationally determined contributions (NDCs).
    3. COP 24: COP 24 was held in Katowice, Poland in 2018. The biggest achievement was the adoption of the Paris Rulebook which establishes the rules and processes needed to provide the operational guidance for fulfilling the ambition of the Paris Agreement.

    What are the positive developments in the Paris Agreement?  

    India’s performance in CCPI: In a recently released Climate Change Performance Index (CCPI), India ranked high along with the European Union and the United Kingdom and remained in the top 10 for the second time in a row.

    • India has received a High ranking on all CCPI indicators except ‘renewable energy’

    US re-joining Paris deal: As per the reports, US president-elect Joe Biden has announced that he will issue an executive order to re-join the Paris Agreement on his first day in office on 20 January 2021. With this signature, all 197 signatories to the United Nations Framework Convention on Climate Change will have ratified the historic deal.

    In June 2017, President Donald Trump announced U.S. exit from the Paris Climate Deal, but the withdrawal only took effect in November 2020.

    China’s Commitments: China has announced significant climate change announcements at the virtual UN General Assembly in New York.

    • China would become carbon net-zero by the year 2060.
    • China has made a small but important change in China’s already committed target for letting its emissions “peak”, from “by 2030” to “before 2030”.

    It is significant as China is the biggest emitter in the world with accounting for around 30 percent of global GHG, followed by the US, EU, and India.

    China’s coercive environmentalism

    • Chinese Model: Chinese model of coercive environmentalism is finding an echo among some Western environmentalists. They believe planetary survival must be the foremost objective of the moment and all other considerations must be subordinated to it.
    • Issues with the model: Whatever the merits of authoritarian environmentalism, it has little political chance of being replicated in democracies. Plural societies are focused on improving the nature of liberal environmentalism that relies on political consensus in drafting new environmental norms and their effective enforcement as well as the reliance on market-based mechanisms.
    • Success Stories:
      • In total, eight international jurisdictions have made good progress since 2015, including Ethiopia, Morocco, India, European Union, Canada, Chile, Costa Rica, and Argentina.
      • An increasing number of countries are adopting net zero emissions targets. Some, like the UK, have dumped coal, and are well on the way to achieving those targets.

    Challenges in achieving Paris agreement targets

    Climate Action Tracker is an independent scientific analysis produced by two research organizations tracking climate action since 2009. It monitors 32 countries, accounting for more than 80 percent of global emissions.

    Countries like the Russian Federation, Saudi Arabia, the United Arab Emirates, and Indonesia have either made no progress since 2015 or having highly insufficient targets.

    Today, Australia’s emissions are at a seven-year high, and continue to rise with the setting up of new coal and gas projects.

    In 2018, Brazil recorded the world’s highest loss of tropical primary rainforest of any country — 1.3 million hectares — largely in the Amazon.

    India’s Intended Nationally Determined Contribution (INDC)

    • To reduce the emissions intensity of GDP by 33%–35% by 2030 below 2005 levels;
    • To increase the share of non-fossil-based energy resources to 40% of installed electric power capacity by 2030, with help of transfer of technology and low-cost international finance including from Green Climate Fund (GCF).
    • Increase renewable energy generation to 175 GW by 2022;
    • To create an additional (cumulative) carbon sink of 2.5–3 GtCO2e through additional forest and tree cover by 2030.

    India’s progress against objectives

    India’s per capita emission from fossil fuels (in 2017) is by far the lowest among major economies, i.e.

    • The US: 15.74 MT
    • China: 7.72 MT in China
    • The EU: 6.97 MT
    • India: 1.83 MT carbon dioxide (CO2)

    Climate Action Tracker website has rated its climate efforts as “2-degree compatible”, making India the only major economy to achieve such high rating.

    As per the report released by a coalition of 14 global think tanks including TERI, India is the only country among G-20 nations that is on track to meet its climate change mitigation commitments of 2 degrees Celsius under the 2015 Paris Agreement:

    • The target of achieving 40% of power from renewable sources by 2030 is likely to be achieved several years in advance. Non-fossil sources accounted for about 37 percent of India’s power capacity, as of September 2019.
    • India is actively reducing the component of coal-based thermal power in its energy mix.
    • India’s forest and tree cover has increased by only 5,188 km2 , yielding a 42.6 million tonne carbon sink increase.

    India’s intiatives against Climate Change

    National Action Plan on Climate Change (NAPCC): This action plan aims to provide a low carbon development path for India. The plan has eight missions, focusing on solar, energy efficiency, sustainable habitat, water, ecosystems, forest cover, sustainable agriculture, and climate research.

    ISA: Indian entered into International Solar Alliance with France, in 2015 at UNFCCC CoP 21 Paris, France with an aim of collaboration on the development of solar energy resources among solar resource-rich countries to address their special energy needs.

    India’s draft National Forest Policy calls for a minimum of one-third of India’s total geographical area to be under forest or tree cover and supports the NDC target of creating an additional (cumulative) carbon sink of 2.5–3 GtCO2e by 2030.

    While India still relies on coal, its renewables industry is making huge leaps forward, with investments in renewable energy topping fossil fuel investments.

    National Solar Mission aims to install 100 GW of solar energy by 2022, which is part of India’s long-term goal to install 450 GW of renewable energy by 2030.

    BS VI emission norms: India adopted BS VI vehicular and fuel emission standards as a part of its Auto Fuel Policy. Effective April 2020, India now has ultra-low sulfur fuel (10 ppm) in use across the country. The BS VI emission norms for 2-wheelers are also among the most stringent in the world

    FAME-II Scheme: Scheme provides Rs. `10,000 crore ($1.4 billion) for demand incentives, charging infrastructure subsidies, and battery storage manufacturing Spanning over three years from 2019 to 2022. India has a target of 30% share of electric vehicles (EV) in new sales for 2030.

    National Electric Mobility Mission Plan 2020 aims to subsidize the cost and facilitate the sale of 6 to 7 million hybrid and electric vehicles over five years. To strengthen battery storage, the National Mission on Transformative Mobility and Battery Storage is designed to support the battery and EV component manufacturing.

    National Mission for Enhanced Energy Efficiency (NMEEE) aims to improve efficiency in industry and implement demand-side management programs. The main program, the Perform Achieve Trade (PAT) scheme, establishes an energy trading program for high emitting industries – cement, aluminum, steel, iron, textiles, and paper and pulp.

    Conclusion

    Renewable energy is the key to unlocking rapid decarbonization. It already supplies more than 26 percent of global electricity generation and its costs are dropping rapidly. To accelerate this fundamental transition, more governments need to adapt and improve policies that enable renewable technologies to be rolled out faster.

    Aggregation of the NDCs of countries do not add up to keep temperatures within the 2 degrees C limit. Much more action on GHG reduction, the introduction of green technologies, and adaptation are needed.

  • India-Canada relationship

    How India-Canada ties evolved? What are the challenges and opportunities exist in India-Canada ties?

    This article is based on The Hindu Article “India summons Canadian High Commissioner; issues demarche over Trudeau’s remarks”

    Relevance:

    Recently Canadian Prime Minister expressed his views on Indian farm Bills and supported farmer’s protest. Similarly, Canadian PM’s coalition partner also praised the farmer’s protests in India.

    Days after Canada Prime Minister Justin Trudeau came out in support of protesting farmers, India summoned the Canadian envoy Friday and warned that such “actions”, if they continue, will have a “seriously damaging impact” on bilateral ties.

    How India-Canada ties evolved after Independence? (Source)

    • Canada and India have longstanding bilateral relations built upon shared traditions of democracy, pluralism and strong interpersonal connections.
    • This is complemented by economic engagement, regular high-level interactions and long-standing people-to-people ties.
    • In 1948 when Canada supported a plebiscite, followed by a ceasefire, in the Indian state of Kashmir.
    • Canada opposed India’s nuclear tests: In the aftermath of the nuclear tests, India’s relations with Canada deteriorated to some extent.
      • India’s reluctance to accede to the Non-Proliferation Treaty (NPT) and the Comprehensive Test Ban Treaty (CTBT) the widened gulf between New Delhi and Ottawa for many years.
    • Canada is home to one of the largest South Asian communities abroad, with approximately 5.6% of Canadians being of Indian heritage (1.9 million people).
    • They are highly educated, affluent and industrious PIOs, and well-integrated with the mainstream politics of Canada.
    • This is acts as a double-edged sword in India-Canada relationship.
    • All these made India-Canada relations as long standing but not without challenges

    What are the areas of co-operation between India and Canada? (Source )

    • Trade and Economy:
      • India is Canada’s 9th largest export market
      • India exports include gems, jewellery and precious stones, pharmaceutical products, readymade garments, light engineering goods, iron & steel articles, etc.
      • India’s import from Canada include pulses, newsprint, wood pulp, asbestos, potash, iron scrap, copper, minerals and industrial chemicals, etc.
      • Indian companies have invested especially in the IT, software, steel and natural resources sectors.
    • Various MOU’s between India and Canada has been signed in sectors such as
      • Agriculture
      • Civil Aviation and Railways
      • Double taxation etc,
    • Cooperation in Energy sectors
      • India and Canada signed a Nuclear Cooperation Agreement (NCA) in 2010 for which a Joint Committee on Civil Nuclear Cooperation was constituted by both the countries.
      • In 2015 when Indian PM visited Canada, Uranium supply deal has been signed.
      • Energy co-operation agreements were signed in 2018 when Canadian Prime Minister visited India.
    • Education Sector:
      • In 2018, India was the largest source of international students for Canada’s universities, colleges and schools.
      • Over 100,000/- Indian students study in Canada. To protect the interests of students a MOU on Cooperation in Higher Education has been signed in 2010.
      • IC-IMPACTS (the India-Canada Centre for Innovative Multidisciplinary Partnerships to Accelerate Community Transformation and Sustainability) is a research centre dedicated to the development of research collaborations between Canada and India.
    • S&T and Space:
      • ISRO and CSA (Canadian Space Agency) have signed MOUs for cooperation in the field of exploration and utilization of outer space and two Implementation Arrangements specifically addressing satellite tracking and space astronomy has also been signed.
      • ANTRIX, the Commercial arm of ISRO has launched many Canadian Satellites.
    • Indian Diaspora
      • The Diaspora is well represented in federal Parliament and provincial legislatures.
        For ex. New Democratic Party, one of the coalition party of present Canadian government is headed by a person of Indian Origin (Jagmeet Singh).
    • Both the country also formed various organisations such as Canada – India Parliamentary Friendship Group (CIPEG), Canada India Business Council (CIBC), Canada India Foundation (CIF), Indo-Canada Chamber of Commerce (I-CCC) for strengthening India-Canada Co-operation.
    • Canada and India are undertaking bilateral negotiations toward both a Comprehensive Economic Partnership Agreement and a Foreign Investment Promotion and Protection Agreement (FIPA) at present

    Challenges in India – Canada relationships: (RSTV Big Picture)

    Though India and Canada have long standing relationships, the co-operation never achieved its full potential because of various reasons.

    • Khalistani separatist factor:
      • It is the single most important challenge between India and Canada ties.
      • Sikhs constitute a significant proportion of the Indian diaspora; they make up little less than one percent (a little over 500,000) of Canada’s total population and few leaders in Canada support Khalistan movement to large extent for electoral gains in Canada.
      • The Ontario Provincial Parliament adopted a resolution terming the 1984 anti-Sikh riots as ‘genocide’ and many other Canadian leaders also support that even today.
      • During recent Canadian PM visit to India, a controversial picture where former Sikh separatist Jaspal Atwal has surfaced in news.
      • Canadian government usually try to balance the Sikh assertions and government’s India policy. This makes India Canada relationship at stake.
      • It is also the reason for recent Canadian PM’s support to Indian farmer’s protest.
    • Trade Relations:
      • Though both the countries are involved in Trade for long time the trade deals are “always underperformed” said by Ministry of External Affairs, India.
      • Feminisation of Canadian Trade Policies
        Canadian Government put in gender clauses in the trade pact. Though it is revolutionary, but in countries like India it was seen as a non-tariff barrier.
        For Ex. Canadian Trade agreement with Chile has entire Chapter devoted to women.
    • Bilateral agreements: Comprehensive Economic Partnership Agreement (CEPA) and Investment Promotion and Protection Agreements (BIPPA), have been in negotiation for long time and no progress is reached by both the countries.
    • Strategic Location:
      • Canada surrounded by developed Western countries does not clearly understand India located with hostile neighbours like China and Pakistan.
      • The terms and conditions have heavily tilted towards developed countries and Indian interests are not considered seriously so far.

    Solutions:

    • Canada has to understand and remove Feminisation clause in trade pacts or give more time to countries like India to complete the terms associated.
    • Canada is one of the most advanced country in terms of Renewable Energy. India with its focus of Renewable energy targets in Nationally Determined Contributions has to strike a deal or MOU regarding renewable energy.
    • Infrastructure and transport sectors, are potential areas of cooperation and investment. India’s ambitious ‘smart cities’ initiative creates opportunities for Canadian firms like Bombardier etc.
    • In 2017 Canadian government announced that Canada will take in 1 Million more Immigrants. With US and few other Western Countries are turning down migrants, Canada turned as an alternative destination for Indians and India has to leverage that.
    • Canadian Energy reserves: According to World Oil Outlook Report, India’s oil demand will double by 2040. Canada’s Oil and Liquefied Natural Gas (LNG) resources offer better alternative towards Indian demands.
    • Convergence over China factor: Canada recently stated to diverge its trade relations and opposed China’s diplomacy. India has a potential to become a trade supplier.

    Way forward:

    There is enough potential for both, India and Canada to boost the cooperation and take their relations to next level. But it requires Canadian effort by widening their Indian perspective. This can happen if India by diverting the talks from politically contentious issues

  • How Tropical cyclones are formed?

    News: Cyclone Burevi has weakened into a deep depression as its interaction with a landmass in Tamil Nadu has slowed its movement and intensity.

    Cyclonic disturbances are rapid weather systems, which include weather depressions, deep depressions, and tropical cyclones (of severe, very severe, extremely severe, and super cyclonic storms depending on their intensity).

    What is Tropical cyclone Burevi ?

    Tropical cyclones are violent storms that originate over oceans in tropical areas and move over to the coastal areas bringing about large-scale destruction caused by violent winds, very heavy rainfall, and storm surges.

    Cyclones create a whirl in the atmosphere with very strong winds circulating around it in an anti-clockwise direction in the Northern Hemisphere and in a clockwise direction in the Southern Hemisphere.

    The pressure gradient falls towards the center from all directions and therefore winds try to converge towards the center from all directions. The air blows inwards in an anticlockwise direction in the northern hemisphere and clockwise in the southern hemisphere.

    Conditions for formation of Cyclones

    The conditions favorable for the formation and intensification of tropical storms are:

    1. A consistent source of heat as tropical cyclones are thermally induced low-pressure systems.
    2. Large sea surface with a temperature higher than 27° C which is possible only during the late summers i.e. September, October, and November
    3. Presence of the Coriolis force.
    4. Small variations in the vertical wind speed.
    5. A pre-existing weak low-pressure area or low-level-cyclonic circulation;
    6. Upper divergence above the sea level system.

    Structure of Tropical Cyclone

    The structure of a Tropical Cyclone is typically a massive cumulonimbus cloud with rapidly rising air spiraling upwards at the margins of the eye. An eye is a region of calm with subsiding air. Around the eye is the Eyewall, where strong spiraling winds ascends and the height can reach up to the tropopause.

    Tropical cyclones are formed by the following parts:

    Eye:  

    The eye is the center of cyclones which is characterized by a calm area, sinking, and light wind. The eye is the calmest part of the Cyclone structure.

    Conservation of angular momentum and centrifugal force are the reasons behind its formation.

    Eyewall:

    A band around the eye of the greatest wind speed, where clouds reach the highest and precipitation is the heaviest. The heaviest wind damage occurs where a hurricane’s eyewall passes over land.

    Rain bands:

    Curved bands of clouds and thunderstorms that trail away from the eyewall in a spiral fashion. These bands are capable of producing heavy bursts of rain and wind. Sometimes gaps are found between spiral rain bands, where no impact (wind or rain) of cyclones are found.

    Formation of Tropical Cyclones

    Cyclone Structure

    • As mentioned in the conditions, air temperature higher than 27° C with an abundant and turbulent transfer of water vapor to the overlying atmosphere (air) by evaporation is required for the formation of Cyclones, which is facilitated by direct insolation.
    • As the low-pressure area is created over sea pockets and high pressure on the surrounding areas, air starts to flow from the high-pressure area to low-pressure pockets.
    • The Coriolis force causes the wind to spiral around a low-pressure area. As the presence of Coriolis force is negligible in the equatorial belt between 5 degrees north and 5 degrees south latitudes, hence cyclonic systems do not develop in this region.
    • Heated sea surface starts to heat the air over that leading to air moving up and away from the ocean surface due to convection, it leaves less air near the surface. Cool Air from the surrounding areas rushes towards the empty area to fill it, which after reaching there gets heated and picks moisture and starts rising upwards. It creates the cycle of air moving in and up.
    • As the moist air rises up, it starts cooling with the altitude (temperature falls with the height), and the process of condensation starts. It results in the release of the latent heat of condensation. The latent heat of condensation is what drives the storm and leads to the formation of clouds.
    • The energy that intensifies the storm, comes from the condensation process in the towering cumulonimbus clouds, surrounding the center of the storm (Eye).
    • With the increasing altitude, the air cools down to an extent at tropopause where it fails to rise any further and starts to diverge outside horizontally.
    • The whole system of clouds and wind spins and grows, fed by the ocean’s heat and water evaporating from the ocean surface. As the storm system rotates faster and faster, an eye forms in the center.
    • A mature tropical cyclone is characterized by the strong spirally circulating wind around the center, called the eye. The diameter of the circulating system can vary between 150 and 250 km.
    • Rain bands regions with cumulonimbus clouds are created, facilitating intense rainfall in that region. Cloud formation is dense at the center and density decrease towards the outside.

    Conditions that slow or end Cyclones

    • With a continuous supply of moisture from the sea, the storm is further strengthened. On reaching the land the moisture supply is cut off and the storm dissipates. The place where a tropical cyclone crosses the coast is called the landfall of the cyclone.
    • Another condition that slowdown or ends a Cyclone is when dry, cool air is suddenly present in the system, which reduces the possibility of convection to keep the storm going.

    Why More Cyclones are formed in Bay of Bengal?

    There are other coastlines around the world that are vulnerable to surging storms – the Gulf Coast of Louisiana, for example – but the “north coast of the Bay of Bengal is more prone to catastrophic surges than anywhere on Earth”.

    Both the Bay of Bengal and the Arabian Sea are prone to Cyclonic storms, but Cyclonic activities are more intense and frequent in Bay of Bengal Compared to the Arabian Sea

    • High sea surface temperatures along with high humidity due to higher rainfall in the Bay of Bengal, triggers extremely strong cyclones.
    • Sluggish winds, along with warm air currents in the Bay of Bengal keep temperatures relatively high.
    • The supply of constant inflow of fresh water from the Ganga and Brahmaputra rivers makes it impossible for the warm water to mix with the cooler water below.
    • Cyclonic winds easily move into the Bay of Bengal due to the presence of moisture source from rivers and the absence of any large landmass unlike the Arabian Sea, where Cyclones usually weaken due to the presence of Western Ghats.
    • Whereas Arabian Sea receives stronger winds that help dissipate the heat, and the lack of constant fresh water supply helps the warm water mix with the cool water, reducing the temperature.

    Classification of storms

    Indian Meteorological Department (IMD), which classifies the low pressure systems in the Bay of Bengal and the Arabian Sea on the basis of capacity to damage, which is adopted by the WMO.

    tropical cyclone classification

    Benefits of Tropical Cyclones:

    Although Tropical cyclones are known for the destruction they cause, when they strike, they also bestow certain benefits to the climatic conditions of that area such as

    • Relieve drought conditions: By bringing rain to the coastal areas, cyclones relieve the drought-like conditions in the surrounding areas.
    • Maintain equilibrium in the Earth’s troposphere: They Carry heat and energy away from the tropics towards temperate latitudes, thus helps in maintaining an equilibrium of the troposphere.
    • Cyclones help in maintaining a relatively stable and warm temperature worldwide.

    Causes of destruction caused by Cyclones:

    There are three elements associated with cyclones that cause destruction during its occurrence. These are:

    Strong Gusts/Squall:
      • These are very strong winds that accompany a cyclonic storm damages installation, dwellings, communications systems, trees, resulting in loss of life and property.
    • Gusts: These are short but rapid bursts in wind speed. These are the main cause of damage. Gusts are generally short-lived.
    • Squalls: A squall is a strong rise in wind speed which generally lasts for some time. Squalls generally associated with the bands of thunderstorms.
    Torrential rains and inland flooding:
    • Torrential rainfall (more than 30 cm/hour) associated with cyclones is another major cause of damages.
      • Unabated rain gives rise to unprecedented floods.
      • Rain is a serious problem for the people which become shelterless due to cyclone.
      • Heavy rainfall from a cyclone is usually spread over a wide area and causes large-scale soil erosion and weakening of embankments.
    Storm Surge:
    • It can be defined as an abnormal rise of sea level near the coast caused by a severe tropical cyclone;
      • Seawater inundates low-lying areas of coastal regions drowning human beings and life stock, causes eroding beaches and embankments, destroys vegetation, and leads to a reduction of soil fertility.

    Apart from these Cyclones also create destructions such as:

      • Sudden Change in Regional climate: The ability of cyclone to bring in warmer air is high. So, the elderly and children in those areas have a high vulnerability to develop heat-related problems such as heat strokes.
      • Loss of Livelihood: The majority of the coastal people generally depend on fishing which is completely halted by cyclones.
      • Loss of economy: The economic loss is in multifront from infrastructure loss, relief packages to people, etc.

    Government Initiatives:

    • Government is carrying out a National Cyclone Risk Mitigation Project (NCRMP) with the help of the World Bank to upgrade cyclone forecasting, tracking, and warning systems in India
    • Government is also implementing the Integrated Coastal Zone Management Project (ICZMP) to improve national capacity for the implementation of comprehensive coastal management in India.
    • Government also separated Structural(includes construction) and non-structural measures for effective disaster management of cyclones
    • Solutions:
    • The government should consider the NDMA Guidelines for the management of cyclones:
    • Ensemble Warning System(EWS): Establish EWS involving observations, predictions, warnings, and customized local level advice for decision-makers (national, state, district level) to manage the impact of the cyclone (Read more about EWS)
    • Commissioning of Aircraft Probing of Cyclone (APC): Guidelines calls for the combination of manned and Unmanned Aerial Vehicles (UAV) for critical observational data gaps.
    • Cyclone Disaster Management Information System (CDMIS): Establishing a comprehensive department for coverage of all management information and provide online services to the departments of Disaster management.
    • Specifying the roles and responsibilities in institutionalizing Cyclone risk mitigation with Developmental planning.
    • Community-Based Disaster Management (CBDM): Guidelines asked to launch such activities in all villages of the 84 districts vulnerable to cyclones.

    Way forward:

    • With the adverse Climate Change risks posted by IPCC reports the only option for India is to better preparedness for the disaster with better urban planning, community awareness, etc.
  • Decriminalising Marijuana in India

    This article is based on the two Indian Express articles (links Indian Express, Indian Express) published today and in October, 2020 respectively.

    Why in News

    • US President Biden promises decriminalising the use of marijuana and also gave assurance to clearing out the past convictions related to it during his election campaign.
    • In India also Recent case of wide spread drug usage among Bollywood actors and actresses created a wide debate on whether to legalise Marijuana or not?

     What is Cannabis?

    • According to the World Health Organisation (WHO), cannabis is a generic term used to denote marijuana, hemp, weed etc and several other psychoactive preparations of the plant Cannabis sativa and other plants in Cannabis super family.
    • In general Cannabis family has two major components
    1. CBD (cannabidiol): It is a does not cause intoxication or psychoactive side effects and it is proven as effective chronic pain relief drug
    2. Delta-9 Tetra Hydro Cannabinol (THC) is the major psychoactive constituent in cannabis

    The WHO says that cannabis is by far the most widely cultivated, trafficked and abused illicit drug in the world.

    What is Marijuana and the other terms associated with cannabis?

    Marijuana:

    • Marijuana has high THC levels and intense psychoactive effects
    • Hydrophonic weed refers to a soilless medium of cultivation of marijuana whereby instead of being grown in a field, it is grown at home without soil.

    Hemp/Weed:

    • It has lesser THC levels and has low psycho active effects compare to Marijuana.
    • Generally, it is procured from the extract of the Marijuana leaves
    • It has wide level of medicinal benefits and industrial uses.
    • It is known as Ganja in Hindi.

    Bhang:

    • It is an edible preparation of cannabis, which is ‘consumed either in the form of a drink or smoked’

    ‘Charas’ is the separated resin extracted from the cannabis plant.

    The unpollinated female plants are called hashish. Cannabis oil (hashish oil) is a concentrate of cannabinoids

    How the Cannabis/Marijuana is regulated in India?

    • Bhang, charas and ganja were regulated by the state excise departments and legally sold till 1985.
    • In 1985 The Narcotic Drugs and Psychoactive Substances (NDPS) Act has been enacted central level commercial cultivation of cannabis by production, possession, sale/purchase, transportation, interstate import/export or any other forms is punishable. The Act has been amended three times – in 1988, 2001, and most recently in 2014.
    • While CBD oil manufacturing is licenced under the Drugs and Cosmetics Act, 1940 can be legally used and sold. Some Indian websites do sell. But to purchase it one needs a prescription and many even facilitate it.
    • Similarly, Bhang, ganja and charas are enlisted in the Drugs and Cosmetics Rules, 1945 for use in Ayurveda, Siddha and Unani
    Important Provisions of NDPS Act:
    • There are no restrictions on cultivation and procurement of cannabis for medical and scientific purposes.
    • The legislature left seeds and leaves of the cannabis plant out of the ambit of the NDPS Act.
    • The Act establishes Narcotics Control Bureau as the apex drug law enforcement agency and empowers them to oversee the implementation of of NDPS Act and also the other International conventions related to the it..
    • For holding a small quantity, the prescribed punishment is rigorous imprisonment for up to six months, fine of Rs. 10,000 or both.
    • For holding more than a small quantity but less than the commercial quantity, the prescribed punishment is rigorous imprisonment for up to 10 years, fine of Rs. 1 lakh, or both.
    • For holding commercial quantity, the prescribed punishment is rigorous imprisonment for up to 10-20 years, fine of Rs. 1-2 lakh, or both.
    • The Act covers three broad classes of substances:
    1. narcotic drugs, that is, those covered under the 1961 UN single Convention on Narcotic drugs;
      • Hashish, resin or charas, ganja, any mixture of charas or ganja is prohibited.
      • Bhang or the cannabis leaf is excluded from the act, but regulated through state excise laws.
      • leaf; derivatives include cocaine and any preparation containing 0.1% of cocaine
      • Opium: Poppy based products, preparations with 0.2% morphine
    2. psychotropic substances or those covered under the 1971 UN Convention on psychotropic substances as well as other psychoactive substances such as ketamine which are not yet classified under international conventions; and
    3. “Controlled substances” that are used to manufacture narcotic drugs or psychotropic substances, for example precursor chemicals such as acetic anhydride, ephedrine and pseudoephedrine.
    • ‘Manufactured substances’ category includes drugs such as Amphetamines, methamphetamines, LSD’s
    What are the significant aspects of the Act?
    • The Act prescribes quantity-based punishment. The Act differentiates between small and commercial quantities of various drugs such as:
      • Heroin: 5 grams-250 grams
      • Cocaine: 2 grams-100 grams
      • Hashish or Charas: 100 grams-1 kg
      • Opium: 25 grams-2.5 kg
      • Ganja: 1kg-20 kg
    • The Act Criminalize people who use drugs and provide treatment for their relief from National Fund for the Control of Drug Abuse.

    Why Marijuana should be legalised?

    • Historic significance of Marijuana in India:
      • In later Vedic literature Atharva Veda mentions Bhang plant as one of the 5 sacred plants and usage of Bhang since ancient times is common during the Hindu festivals of Holi and Mahashivaratri.
      • Indian Hemp Drugs Commission in 1894 recommended against complete ban and found the usage as ancient and religious.
      • In 1961, India opposed the inclusion of marijuana in the UN Convention on Narcotic Drugs, citing its role in social and religious customs
    • WHO study concluded Marijuana is not as unhealthy compared to alcohol and tobacco products.
      • It implies that the harms associated with marijuana use were greatly overestimated and society should respond to its use through progressive public health policies rather than ban.
    • Magnitude of substance use in India: This is a survey released by the Ministry of Social Justice and Empowerment in 2019, it states that about 2.8 percent of Indians aged 10–75 years (3.1 crore people) were using cannabis in one form or other. (for source)
    • Burden on Executive and Judiciary:
      • Narcotics Control Bureau investigate, interrogate and arrest people with small or miniscule amounts of marijuana and produce them in front of judiciary. It requires huge man power and state exchequer to control small or miniscule amounts of drug usage.
      • It leads to wide scope of corruption at lower level of executive which harass people even for petty crimes.
      • By legalising it India can release many young people landed in overcrowded jails whose only crime was using marijuana for fun and free up precious police time and go after the big drug mafias.
    • International wave of legalization of cannabis, based on its medicinal properties and commercial utilities Ex. Uruguay became the first country to fully legalize marijuana in 2013. Then Canada followed the path.Now many states in USA legalised marijuana.
    Why Marijuana should stay Illegal? (Financial Express)
    • Short- and long-term side effects of Marijuana
      • Short term side effects may include a short-term memory loss, impaired motor skills, dry mouth and feelings of paranoia or anxiety.
      • In long term addiction, decreased mental ability and behavioural problems in children (when mothers used marijuana during pregnancy)
    • Marijuana is a gateway drug
      • A private study found more than 40% who used marijuana also used other ‘Hard’ drugs.
    • Against the Directive Principles of Article 47 which specifically calls for the prohibition of intoxicating drinks and drugs that are injurious to health
    • Against International Conventions such as 1961 and 1971 UN conventions against Narcotic drugs and Psychotropic substances respectively and also International Opium Convention’ (1925).
    • Difficulty in regulation: The fallouts of pharmaceutical product divergence into cattle market and drugs without prescription can continue in Marijuana too and put India’s younger generation at risk
    • Not have completely proven medical records. For Ex., there is no evidence that cannabis is beneficial when used in diseases such as Crohn’s disease, sleep disorder, glaucoma, etc.

    Way forward:

    Instead of banning, India at present needs a progressive public health policy which control their use and reduce the harms by focusing on health education, age restrictions for buying, taxation policies, limiting the dose of the active ingredients and access to counselling for those who wish to stop is the need of the hour.

  • Why Farmers are protesting and what is MSP system?

    Farmer’s protests is not a new phenomenon in India, but in recent years, the frequency of protests has been increased. Major protests reported from states like Madhya Pradesh, Bihar, and UP.

    A look at the timeline of farmers’ protest over the last 10 years shows that the minimum support price (MSP) for various crops has been a major grouse.

    Another issue has been that of land acquisition, with farmers complaining that compensation for land acquired for industrial projects was not in tune with market rates.

    Most recent protests are against the 3 farm bill enacted recently by the government:

    1. Essential Commodities (Amendment) Bill, 2020: aims to provide government with the tool to regulate agri commodities.
    2. Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Bill, 2020: aimed to provide a legal contract for farmers to enter into written contracts with companies and produce for them.
    3. Farmers’ Produce Trade and Commerce (Promotion and Facilitation),(FPTC) bill 2020: aims toBreak the monopoly of government-regulated mandis and provide farmers and traders freedom of choice of sale and purchase of Agri-produce.

    The major bone of contention among the 3 bills is the FPTC bill that permits sale and purchase of farm produce outside the premises of APMC mandis. Such trades (including on electronic platforms) shall attract no market fee, cess, or levy “under any State APMC Act or any other State law.

    What are objections raised against FPTC bill?

    • Much of government procurement at minimum support prices (MSP) takes place in APMC mandis.
    • In a situation when more and more trading moves out of the APMCs, these regulated market yards will lose revenues.
    • FTPC Bill is not about delivering on the promise of freedom to farmers but the freedom to private capital to purchase agricultural produce at cheaper prices and without any regulation or oversight by the government.
    • APMCs though not abolished but the provisions will drive them dysfunctional gradually. It would pave the way for new capitalists based markets.
    • Due to this bill, the revenue earned by the states in the form of market fees will drop drastically. About 13 percent of the total revenue earned by the Punjab government comes from these mandis.
    • In India, 86 percent of farmers have a land of the size of less than two hectares, they don’t have the resources to carry their produce too far off places to sell. Thus provision allowing interstate trade of produce to farmers, is not well thought out.

    Farmers want a legal guarantee that no procurement will happen below MSP anywhere in the country.

    What are 2 private member Bills that can be instrumental in easing the ongoing farmer’s protest?

    Kisan Union protesting at present are demanding for the enactment of 2 Private member bills, introduced in 2018.  Bills were drafted by the members of the All India Kisan Sangharsh Coordination Committee (AIKSCC), the umbrella organisation of 500 farmers’ unions across the country.

    1. The Farmers’ Freedom from Indebtedness Bill 2018:
      1. obligates the govt. to waive all loans of all peasants, including landless peasants, agricultural workers, sharecroppers, fishermen which includes declaration of private loans as null and void and payment to the creditors by the govt. without any recovery from the debtors.
    2. The Farmers’ Right to Guaranteed Remunerative Minimum Support Price (MSP) for Agricultural Commodities Bill 2018:
      1. Bill obligates  to regulate and decrease the cost price of farm inputs including diesel, seeds, fertilizers, insecticides, machinery and equipment
      2. To ensure through public and private purchasing agencies that the farmers get a guaranteed MSP of C2 + 50%.

    Why farm protests have been highly intense in Punjab, Haryana?

    • The procurement system and MSP mechanism is strong in Punjab and Haryana.
    • Though the government announces MSPs for 23 crops, only wheat and rice are bought in sufficiently large quantities.
    • For wheat, MSP mechanism is helpful only in the northern and central states like Punjab, Haryana and Madhya Pradesh.
    • For rice, the benefit is accrued by the farmers from the states such as Andhra Pradesh, Chhattisgarh, Punjab and Haryana.
    • Other states are hardly benefitted from the MSP mechanism.
    • The 70th round of National Sample Survey for 2012–13 revealed that only 32.2% of paddy farmers and 39.2% of wheat growers in the country were aware of MSPs.

    How MSP is determined?

    The CACP determines the MSP, currently based on a formula that was prescribed by the Swaminathan Commission, a government-formed panel that had submitted several reports between December 2004 and October 2006 which set out suggestions for solving the problems faced by farmers.

    The formula requires the assessment of three categories of costs:

    1. A2: the actual expenses paid by farmers in cash and kind for seeds, fertilisers, pesticides, paid labour, irrigation, etc.
    2. A2+FL: the A2 cost along with an adjustment for the costs of unpaid family labour (given traditional Indian farming practices involve families).
    3. C2: A2+FL along with all other production costs, including loans, rentals, cost of land and other fixed capital assets, i.e. a comprehensive cost of production.

    The MSP is set at a particular level above the C2 for each crop, and applies across the country. In addition to the current C2 level, the CACP also takes into account demand and supply, domestic and international price trends, inter-crop price parity and the likely implications of MSP on consumers of the crop.

    How many crops are covered under MSP?

    At present, MSP is provided for 23 crops

    7 Cereals: paddy, wheat, maize, sorghum, pearl millet, barley and ragi

    5 Pulses: gram, tur, moong, urad, lentil

    7 Oilseeds: groundnut, rapeseed-mustard, soyabean, seasmum, sunflower, safflower, nigerseed

    4 Commercial Crops: copra, sugarcane, cotton and raw jute

    In case of sugarcane, MSP has been assigned a statutory status and as such the announced price is termed as statutory minimum price, rechristened as Fair Remunerative Price (FRP).

    On the other hand MSP system is not supported by any law i.e. doesn’t have a statutory status.

    How MSP benefits farmers?

    MSP help in rescuing farmers from low income trap in the following ways:

    1. Fixed Remunerations: The farmers are financially secured against the vagaries of price instability in the market.
    2. Diversification of crops: The MSP announced by the Government of India for the first time in 1966-67 for wheat has been extended to around 24 crops at the present. This will encourage the farmers to grow these diverse crops to maximise their income.
    3. Prevents Distress-Sale: Farmer rarely has surplus savings for buying inputs for the next cropping season. Access to credit (loans) is also difficult for small and marginal farmers. So, they are forced into distress-sale of produce at throw-away prices, and are not able to buy high quality seeds, fertilisers, pesticides & tractor-rent for next cropping season, which will further decrease their income from the next cycle. MSP prevents this phenomenon.
    4. Helps informed decision making: Government announces MSP before the sowing season for 23 crops including cereals, pulses, oilseeds & certain cash crops. This advance information helps the farmer to make an informed decision about which crop to sow for maximum economic benefit within the limitations of his farm size, climate and irrigation facilities.
    5. Acts as a benchmark for private buyers: MSP sends a price-signal to market that if merchants don’t offer higher than MSP prices the farmer may not sell them his produce. Thus it acts as an anchor or benchmark for agro-commodity market. While it doesn’t guarantee that market prices will also be higher than MSP, but atleast it ensures the market prices will not drastically lower than MSP.

    How to improve MSP system in India?  

    NITI aayog in its report provided with the following recommendations to improve the MSP system in India:

    • Awareness among the farmers needs to be increased and the information disseminated at the lowest level so that the knowledge would increase the bargaining power of the farmers.
    • Prompt payment: The delay in payment needs to be corrected and immediate payment should be ensured. For sustainability of farming prompt payment at remunerative rates should be made.
    • Timing of MSP announcement: MSP should be announced well in advance of the sowing season so as to enable the farmers to plan their cropping.
    • Transport and storage: More god owns should be set up and maintained properly for better storage and reduction of wastage. Transport facility (say, in the form of providing two wheelers) for Purchase Officers may be considered to help them effectively discharge their work.
    • Updated criterion for fixing MSP: The criteria for fixing MSP should be current data and based on more meaningful criteria rather than C3.
    • The small and marginal farmers can be provided with Procurement Centres in the village itself to avoid transportation costs.

    Conclusion

    it was found that the MSP has succeeded in providing floor rate for major food grains like paddy and wheat and other produces such as Gram (black & green), spices and oilseeds (groundnut, mustard, till), sugarcane, jute and cotton, and it did not allow market prices to fall below the MSP fixed for them.

    Thus MSP has been very helpful in keeping agriculture in our country alive and we have been able to become self-sufficient in food grains due to it. It becomes crucial for government to provide some solid assurance to farmers that it won’t be allowed to die down.

  • ISSUE OF INTERFAITH MARRIAGES AND LAWS IN INDIA

    The article is based on The Big Picture: Special Marriage Act and Indian Express Explained, Roll it back appeared in the month of November. 

    Context: The Uttar Pradesh government has cleared an ordinance that enables the state to police and punish inter-faith marriages with “the sole intention of changing a girl’s religion”.

    Important provisions of Prohibition of Unlawful Conversion of Religious Ordinance, 2020:

    • Law prohibits conversion from one religion to another by “misrepresentation, force, fraud, undue influence, coercion, allurement or marriage”.
    • Marriage will be declared “shunya” (null and void) if the “sole intention” was to “change a girl’s religion”
    •  The persons forced the girl to change religious conversion may face jail term of up to 10 years if the girl is minor, a woman from the Scheduled Caste or Scheduled Tribe, if the person involved religious conversion on a mass scale. For the rest of the cases, the jail term ranges from 1 to 5 years.
    • The law also provides for the way to conversion. The person willing to convert to other religion would have to give it in writing to the District Magistrate at least two months in advance.
    • The burden to prove would be on the person who caused the conversion or the person who facilitated it. If any violation is found under this provision, then she/he will face a jail term from 6 months to 3 year
    • ·If any person reconverts to his immediate previous religion, then it shall not be deemed to be a violation of the ordinance.

    Why Uttar Pradesh drafted such an ordinance?

    • In the past few months, cases of alleged “love jihad” have been reported from different parts of the state, especially eastern and central UP especially Lakhimpurkheri.
    • a group of parents from a particular locality in Kanpur had complained that their daughters are being allegedly trapped by Muslim men
    • In some cases, girls refused to accept that they were tempted into marriage.

    Criticisms against the law

    Many critics of the law have put forward a few issues regarding the law:

    • Allowing the police to examine subjective “intentions” of men and women entering a marriage veers into thought control — and sets the law up for rampant abuse.
    • Law against fundamental rights: By clearing the ordinance, the state government has trespassed the fundamental right to marry guaranteed under Article 21 of the Constitution. 
    What is the term ‘Love Jihad’ or ‘Romeo Jihad’?:

    • The term itself is based on a conspiracy Theory. It simply means that the Islamic men target non-Islamic women for religious conversion by feigning their love.
    • This theory is completely unproven. The theory got national attention with the alleged conversions first in Kerala and later in Karnataka in 2009.
    •  In 2010, the speech of then CM of Kerala creates widespread allegation (Source)

     Anti-conversion law at central level:

    Central government proposed various bills but none of them passed and became a law. They are:

    • Indian Conversion (Regulation and Registration) Bill 1954
    • Backward Communities (Religious Protection) Bill 1960
    • Freedom of Religion Bill in 1979

    In 2015, the Law Ministry said passing of any law on religious conversion is purely a “State subject” and Central government has no role in it.

    Is Uttar Pradesh being the only state to initiate law for forceful conversion?

    • No, after the central government failed to pass 1960 bill, Odisha government moved on and passed the first anti-conversion law in 1968
    • After that so far 10 states have had passed anti-conversion laws in India.
    • The Himachal Pradesh Freedom of Religion Act, 2019, and the Uttarakhand Freedom of Religion Act, 2018, both prohibit conversion by misrepresentation, force, fraud, undue influence, inducement, allurement and ‘by marriage’.

    But Uttar Pradesh has become one of the first State to pass forcible conversion only during Interfaith marriages as special legislation. States such as Haryana, Madhya Pradesh, and Karnataka have also sought to bring such legislation.

    Interfaith Marriages:

    • It simply means the matrimonial relation between individuals who follow different religious faiths.
    • Marriage between the same faiths has been governed by the Hindu Marriage Act 1955, Muslim personal Law. But to rectify and include interfaith marriages Centre passed the Special Marriage Act 1954.
    • Special Marriage Act considers Interfaith Marriages as secular.
    Few important provisions of the Special Marriage Act of 1954:

    • The law allows the solemnization of marriages without any religious customs or rituals. The law solemnizes marriages by the way of registration.
    • The consenting couple (Men above 21 years and women above 18 years) who were going to get married have to provide 30-day Notice at the Marriage Registrar’s office.
    • After 30 days they can get married. If there are any objections raised then the Marriage Registrar will investigate the objection
    •  The Act is applicable to all Indian citizens and Indian nationals who live in abroad.
    • Allahabad High Court observed the Special Marriage Act as ‘one of the earliest endeavors towards Uniform Civil Code. (Source)

     Judicial pronouncement regarding interfaith marriages and forcible conversions:

    • The Rev Stanislaus vs Madhya Pradesh case: Supreme Court said Article 25 does provide freedom of religion in matters related to practice, profess and propagate, but the word propagate does not give the right to convert and upheld the laws prohibiting Conversion through force, fraud, or allurement.
    • Based on the above case it is clear that forcible conversion or conversion through fraud and allurement is against the Right to Freedom of Religion.
    • Sarla Mudgal case: The court had held that the religious conversion into Islam by a person from non-Islamic faith is not valid if the conversion is done for the purpose of polygamy.
    • Lily Thomas case: In this case Court observed that marrying another woman after converting to Islam is punishable under the bigamy laws.
    • Hadiya Case: Supreme Court said that the right to marry a person of one’s choice is integral to Article 21 (right to life and liberty) of the Constitution
    • Allahabad High Court, in the case, Noor Jahan Begum @ Anjali Mishra and another vs. State of U.P. and Others observed that one shouldn’t change one’s faith just for the sake of matrimony. As two persons professing different religions can marry under the Special Marriage Act.
    • But in the most recent judgment, Allahabad High Court itself overturned its previous judgment, calling the decision “bad in law”. The division bench of the Allahabad high court said on November 11, that judgment does not take into account the right to life and personal liberty of mature adults.

    Way forward:

    Based on the judicial pronouncements it is clear that the Right to marry a person belongs to another faith is a Fundamental Right but that does not have to be associated only with personal laws or religious conversions. It is the Right of the individual’s personal liberty to involve in Interfaith Marriage either by the Special Marriage Act of 1954 or by Personal laws (after getting himself converted).

  • Initiative to boost domestic manufacturing in India | 26th Nov. 2020

    News: Government has recently approved the Production Linked Incentive (PLI) scheme worth up to Rs 1.46 lakh crores for 10 sectors with an aim to make Indian manufacturers globally competitive, attract investment in India and enhance export.

    The sectors under the scheme include automobiles and auto components, pharmaceuticals, telecom, and networking products, and advanced chemistry cell battery among others.

    PLI scheme worth Rs 50,000 crore for large-scale electronics manufacturing (in particular, mobile phones), medical devices, and pharmaceutical ingredients was launched earlier.

    Production Linked Incentive (PLI) scheme:

    It proposes a financial incentive to boost domestic manufacturing and attract large investments in the electronics value chain.

    Key features of the scheme:

    • The scheme shall extend an incentive of 4% to 6% on incremental sales (over a base year) of goods manufactured in India and covered under target segments, to eligible companies, for a period of five (5) years with financial year (FY) 2019-20 considered as the base year for calculation of incentives.
    • The Scheme will be implemented through a Nodal Agency which shall act as a Project Management Agency (PMA) and be responsible for providing secretarial, managerial, and implementation support and carrying out other responsibilities as assigned by MeitY from time to time.
    • Companies that make mobile phones which sell for Rs 15,000 or more will get an incentive of up to 6 percent on incremental sales of all such mobile phones made in India.
    • In the same category, for companies that are owned by Indian nationals and make such mobile phones, the incentive has been kept at Rs 200 crore for the next four years.

    Intended benefits of the scheme

    The scheme is aimed at:

    • Incentivizing foreign companies to set up shop in India.
    • Encouraging local manufacturing units to set up or expand manufacturing units.
    • Reducing the dependence on Chinese imports.
    • Attract Investment in cutting edge tech and manufacturing In India.
    • Making India a part of the global supply chain.

    What is the status of imports in India?

    • Analysis of factory-level production data from the Annual Survey of Industries (ASI) shows that value addition for surveyed firms ranged from 1.6% to 17.4%, with most of the firms being below 10%. More than 85% of the inputs were imported for the majority of the surveyed firms in 2017-18.
    • UN data for India, China, Vietnam, Korea, and Singapore (2017-2019), show that except for India, all countries exported more mobile phone parts than imports.
    • India’s imports of mobile phone parts were 25 times the exports in 2019.
    • The PMP policy increased the value of domestic production while improvement in local value addition remains a work-in-progress.

    Why the shift from China is unlikely?

    • India produced around 29 crore units of mobile phones for the year 2018-19; 94% of these were sold in the domestic market and the rest was exported. This means that much of the production and sales under the PLI policy will have to be for the export market.
    • A study by Ernst & Young for the India Cellular & Electronics Association showed that if the cost of production of a mobile phone says 100 then the effective cost of manufacturing a mobile phone in China is 79.55, Vietnam is 89.05, and India is(including PLI), 92.51.
    • It may be early to expect a major chunk of mobile manufacturing to shift from China to India as incentives under the PLI policy may not turn out to be a game-changing move.
    • The PLI policy does not strengthen our current export competitiveness in mobile phones; and markets with a higher average selling price have lower volumes.
    • In September 2019, Chinese Taipei contested the raise in tariffs under the PMP. If the PMP is found to be the World Trade Organization (WTO) non-compliant, then we may be flooded with imports of mobile phones which might make the local assembly of mobile phones unattractive.

    Challenges faced by domestic manufacturers:

    • Less presence of domestic firm: Domestic firms have been nearly wiped out from the Indian market and thus their ability to take advantage of the PLI policy and grab a large domestic market share seems difficult.
    • Cheap imported material: Domestic firms may have the route of exporting cheaper mobile phones to other low-income countries but their performance has not been promising.
    • For example, among the chosen domestic firms, Lava International reported exports of ₹324 crores in 2018, while Optimus Electronics exported ₹83 crores in 2018 and ₹4 lakh in 2019.
    • Low Level of Participation in Global Value Chains (GVCs): India’s participation in GVCs has been low compared to the major exporting nations in East and Southeast Asia. Export growth of capital-intensive products from China has been mainly driven by its participation in the GVCs.
    • Lack of integration: China’s export promotion policies since the 1990s have relied heavily on a strategy of integrating its domestic industries within the GVCs.
    • Lack of competitiveness: India’s mobile phone exports grew from $1.6 billion in 2018-19 to $3.8 billion in 2019-20, but per unit, value declined from $91.1 to $87, respectively.
    • Missing Profits: Despite the impressive growth of electronic products in India, the net value added by production units is very low.
    • Challenges in Set-up of Foundries: Many industry experts also cite the lack of a foundry as contributing to low R&D in this sector in India, which results in poor talent retention and eventually ‘brain drain’.
    • Low R & D: Domestic players have also shown low interest due to their inability to compete with tech giants in research and development (R&D) and investment.

    Steps that were taken to boost manufacturing

    • Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors:
      • Under the scheme, a financial incentive of 25% of capital expenditure has been approved by the Union Cabinet for the manufacturing of goods that constitute the supply chain of an electronic product.
      • The SPECS notified for manufacturing of electronics components and semiconductors has a budget outlay of Rs 3,285 crore spread over a period of eight years.
      • The government estimates that the push for the manufacturing of electronics components and electronic chips will create around 6 lakh direct and indirect jobs.
    • Modified Electronics Manufacturing Clusters Scheme
      • The EMC 2.0 has a total incentive outlay of Rs 3,762.25 crore spread over a period of 8 years with an objective to create 10 lakh direct and indirect jobs under the scheme.
      • The EMC 2.0 scheme will provide financial assistance up to 50% of the project cost subject to a ceiling of Rs 70 crore per 100 acres of land for setting up of Electronics Manufacturing Cluster projects.
      • Electronic manufacturing clusters to be set up under the scheme will be spread in an area of 200 acres across India and 100 acres in the North-East part of the country.

     Way forward:

    • Focus on supply chain co-location: Foreign firms chosen under the PLI policy should be encouraged to co-locate their supply ecosystems in the country as the assemblers and component manufacturers move together.
      • The six-component firms that have been given approval under the ‘specified electronic components segment’ do not complete the mobile manufacturing ecosystem.
      • For example, literature shows that when Samsung set up shop in Vietnam, it relied heavily on its Korean suppliers which co-located with it to produce in-between inputs, so much so that 63 among Samsung’s 67 suppliers then were foreign.
      • Even though Samsung is invested hugely in India, it has not co-located its supply chain in the country.
    • Focus on the value of production:
      • The new PLI policy offers an incentive subject to brinks of incremental investment and sales of manufactured goods; these thresholds vary for foreign and domestic mobile firms.
      • However, the focus remains on increasing the value of domestic production, and not local value addition. If implemented, an additional capacity of 60 crore mobile phones per year may be on stream at the end of the PLI.
    • Profiting from Anti-Chinese Sentiments: USA’s allegations on China for worsening Covid-19 and India-China conflict are golden opportunities for India to act fastly on it and attract outgoing investment.
  • Corporates as Bankers: Bane or boon for economy?

    A recent report by an Internal Working Group (IWG) of the Reserve Bank of India has attracted a lot of attention as well as criticism for its recommendations including the one that suggests corporate houses be given bank licences.

    Rationale to constitute IWG by RBI:

    The IWG was constituted to “review extant ownership guidelines and corporate structure for Indian private sector banks” for important reasons like

    • The total balance sheet of banks in India still constitutes less than 70 per cent of the GDP, which is much less compared to global peers such as China, where this ratio is closer to 175%.
    • The domestic bank credit to the private sector is just 50% of GDP. But in economies such as China, Japan, the US and Korea it is upwards of 150 per cent.
    • India’s banking system has been struggling to meet the credit demands of a growing economy.

    There is only one Indian bank in the top 100 banks globally by size. Further, Indian banks are also one of the least cost-efficient. So, RBI Constituted a IWG to look into the ownership guidelines and corporate structure for Indian private banks.

    The committee submitted its report last week.

    key recommendations of the IWG:

    ·         The cap on promoters’ stake in the long run (15 years) may be raised from the current level of 15 per cent to 26 per cent of the paid-up voting equity share capital of the bank.

    ·         Large corporate/industrial houses may be allowed as promoters of banks only after necessary amendments to the Banking Regulation Act, 1949

    ·         Well run large Non-banking Financial Companies (NBFCs), with an asset size of ₹50,000 crores and above, may be considered for conversion into banks subject to completion of 10 years of operations and additional conditions prescribed.

    ·         Payments Banks can be allowed to convert to a Small Finance Bank, after 3 years of experience as Payments Bank.

    ·         Reserve Bank may take steps to ensure harmonisation and uniformity in different licensing guidelines, to the extent possible.

    Corporates-as-banks

    Positives of committee report:

    For Banking Sector:

    • Dilute the Impact of COVID pandemic: The reforms can Fast track the credit disbursment and distribution to businesses in short term to revive the economy, impacted by the COVID Pandemic.
    • Transformation of banking sector in India: If implemented the banks can help in India’s ambition to be a trillion-dollar economy by acceleration of credit to MSME Sector that will also compliment Atmanirbhar Bharat mission.
    • Bank for all: In rural India Co-operatives is still the major banker with no other alternative. If payments banks are allowed to convert in to small finance banks, this could potentially increase competition, especially in the micro lending space, leading to increasing efficiency.
    • Ensuring robust banking system in India: Since India has very less banks in present, even a smallest bank failure is causing ripples in the entire banking system. To avoid such every time RBI and Government is stepping in to rescue. This can be avoided if recommendations are implemented.
    • Can get rid of NPA’s in the long run: The reforms can create a ripple effect and reduce India’s one of long-standing problem in the banking sector. Opening up of more banks will ensure that the underperforming banks either amalgamated or weed out in the long run.
    • Digital banking is feasible: At present due to less competition and capital,banks are investing less in the technology in terms of payment, credit behaviour etc. Reforms can ensure private invest in technology and push the Public Sector Banks also.
    • Corporate houses will bring capital and expertise to banking.
    • Government can focus on other problems instead of rescuing banks frequently with taxpayer’s money. Apart from that Government finances were already strained before the Covid crisis and worsened during the pandemic.

    Why the corporate as a promoter of bank being criticized?

    One of the most severe criticisms of the report was the recommendation of allowing the large corporate/industrial houses as a promoter of banks. Former RBI Governor Raghuram Rajan and former RBI Deputy Governor Viral Acharya severely criticised the suggestion for various reasons like,

    • Poor governance under the present structure is the major problem of Indian banking sector. Ex Despite spotting the fault at early stage in IL&FS, RBI did not step up its governance activities and that resulted in the defaulting of the IL&FS.
    • Bank for elites: In the past, Banks were nationalized because they ownership by the private sector was leading to “large concentration of resources in the hands of a few business families”. The allowing of corporate might revive that.
    • Financial crisis in India: 2008 Global Financial crisis was a proof of how risky that the private sector banks are? Trusting them to operate at large scale instead of trust worthy and financially stable government-owned banking system might create a financial crisis in long run.
    • Issue of Connected Lending: 1997 Asian Financial Crisis was a grave example of mingling of big companies and banks. If we allow corporate as a promoter of banks then the connected lending consequence is unavoidable in India.IWG report itself mentions, “it will be difficult to ring fence the non-financial activities of the promoters with that of the bank”.
    Connected Lending:

    connected lending refers to a situation where the promoter of a bank is also a borrower. There is a possibility promoter to channel the depositors money into their own ventures. Connected lending was the key factor behind 1997 Asian Financial crisis.

     

    The recent episodes in ICICI Bank, Yes Bank, DHFL etc. were all examples of connected lending.

    • Inadequate to track: Corporate houses are adept at routing funds through a maze of entities in India and abroad. So, they can bypass the checks and balances and flout the norms.
    • Can Increase Crony Capitalism: There is a high possibility that few corporates control the lending process and influence the lending process. Thereby reduce the competition and can create a Chakravyuhatype of challenge in Indian Economy.

    Is Corporate as Banks is new to India?

    In February 2013, the RBI had issued guidelines that permitted corporate and industrial houses to apply for a banking licence. Some houses applied, although a few withdrew thei rapplications subsequently.

    Only two entities qualified for a licence, IDFC and Bandhan Financial Services. No corporate was ultimately given a bank licence.

    The RBI maintained that it was open to letting in corporate companies to open banks. However, none of the applicants had met ‘fit and proper’ criteria.

    In 2014, the RBI restored the prohibition on the entry of corporate houses into banking

    Solutions:

    • Improve private governance and regulatory capacity:The Committee on Financial Sector Reforms (2008) headed by then RBI Governor observed that it is premature to allow industrial houses to own banks. Though necessary,the reform can wait till private governance and regulatory capacities improve.
    • Regulator side:
      • Regulator has to enhance the credibility of the system by ensuring every deposit is safe especially with better governance.
      • RBI should ensure the checks and balances before allowing corporates to become promoters.
      • Instead of debating with the allowing of corporate is good or bad? RBI can move ahead with the other recommendations which are really beneficial for the banking sector and economy as whole.
    • From Government side
      • Better Legal framework: If permitting corporates as bank promoters than the government not only need to amend the Banking Regulation Act, 1949 but also needs to amend various Acts to curb crony capitalism, liberal whistle blowing policies etc., but they all need strong political commitment.

    Way forward:

    Though allowing corporate is one of the recommendations of IWG report, there are many other necessary recommendations for reforming the banking sector. RBI needs to reconsider the step to allow corporates, as the report is open for public review till January.

  • Social and Digital media regulations in India | 24th November

    Issue of Digital/Social media regulations in India

    In the backdrop of the increasing popularity of online platforms (OTT, Social Media Etc.) in India and world over in the recent times, many efforts are being made to regulate the content being posted on them.

    The latest attempt in this row has been made by the Kerala Government. Kerala government has recently amended the Kerala Police Act by incorporating a new Section, 118 (A).

    Provisions of the controversial Kerala law
    • Any person who sends or creates any information that is offensive or is intended to offend or threaten another person, through any means of communication, is liable to face imprisonment of five years or a fine of Rs 10,000 or both.
    • Make the offence as a cognisable(Police can arrest the person without warrant and investigate the person without the permission of the Court) and provides a punishment of three years.
    Ø  Criminal defamation under the IPC is a non-cognisable offence and no police officer can register an FIR for the offence; it can only be prosecuted as a private complaint. Apart from that, the punishment prescribed in IPC is only two years.

    Ø  Similar offence for Sec. 199 Cr.P.C.: No court shall take cognisance of defamation unless the aggrieved party files a complaint.

    • As per the government, Section 118(A) is meant to protect people, particularly women, transgenders and other vulnerable sections from social media abuse.
    Relevant points from judgments:
    • In Shreya Singhal Case Supreme court said that when a provision of law suffers from Vagueness and unclear about the terms and penal provisions used then that provision of law can be struck down by the judiciary (Supreme Court struck down Section 66Aof IT Act and also Section 118(d) of Kerala Police Act as a violation of Fundamental Rights enshrined under Article 19 (1))
    • Kerala High court itself said

      “Existing laws which deal with the defamation and other allied offences are sufficient to address these kinds of issues. So, there is no need for separate legislation for offences like defamation, modesty of women and transgender etc.,”

    • By making defamatory utterances cognisable and raising the prison term, the Kerala ordinance effectively amends the IPC and Cr.P.C., a move for which the Centre’s (President’s) assent is mandatory, as it is in conflict with central laws.

    Regulations of Digital media

    Recently, the government has brought digital/online media platforms, films release on OTT, and audio-visual programs, under the ambit of the Ministry of Information and Broadcasting from the ambit of the Ministry of Electronics and Information Technology.

    New regulations added 2 new categories i.e.

    1. Films and Audio Visual programmes made available by online content providers
    2. News and Current Affairs on online platforms such as Facebook, Twitter and Instagram

    In recent cases involving Sudarshan news, the government on the requirement of regulating the electronic media stated that regulating the digital media was more pressing.

    At present, the News Broadcasters Association (NBA) represents the news channels, the Press Council of India regulates the print media, the Central Board of Film Certification (CBFC) monitors film, while the Advertising Standards Council of India regulates advertising.

    Last month, a law was passed stating that digital news platforms could not have more than 26% foreign investment.

    Need for regulating OTT platforms
    • Video streaming services such as Netflix and Amazon Prime have become key distributors for new movies and entertainment content during the COVID restrictions and have multiplied their subscribers in India in recent years. But they do not require any certification before any new releases.
    • In contrast, new movies, before theatrical release, have to get through the certification process of the Central Board of Film Certification.
    Need for regulating digital/social media platforms
    • Ability of digital/social Media to Reach, Scale and size is huge compare to print and other media.
    • While electronic media in India is regulated by the Cable Television Networks (Regulation) Act of 1995, there was no law or body to oversee digital content. Some people are taking an undue advantage which leads to too much voice and noise in social media.
    • Recently, India has seen a surge in the number of fake news items in circulation, especially on WhatsApp and Face book.
    • Absence of editorial control in digital/ social media leads to large scale user-generated content which is unregulated
    • In 2018, fake information that was circulated on WhatsApp led to the lynching of five men in Maharashtra and there are many such instances.
    • In this time, when India is in conflict with its neighbouring countries like China and Pakistan, there is a possibility of Foreign-funded digital platforms running to defame our country.
    • There is also evidence of fake information influencing the process of election in the USA which undermines the root of democracy.
    Issues in regulating the OTTs, digital and social media
    • When it comes to regulating digital news content, new regulations may end up facilitating more governmental interference and censorship which impacts the Right to freedom of speech and expression (Article 19(1))
    • It is expected that regulations might be instrumental in suppressing the freedom, enjoyed by digital media till now and might be targeted at a section that has been bold and forthright in speaking truth to power.
    • Digital platforms were till now able to openly create the movies/videos on politically sensitive subjects, now they have to bow down to the political pressures.
    • If the government is providing any legislation to regulate the social/digital media then the wider/free for all media houses and persons might face a number of allegations which leads to a huge inflow of cases to the judiciary which is already overburdened.
    • The government turned down the self-regulatory proposal proposed by the 15 OTT platforms collectively under the Internet and Mobile Association of India (IAMAI) in September this year.
    Important provisions of Self-regulatory Proposal by OTTs

    Proposed two-tier structure as part of the self-regulatory regime

    o   1st tier: Consumer Complaints Department or an internal committee, as well as an advisory panel, which will deal with complaints, appeals, and escalations.

    This is the three-member committee of which two of whom will be executives of the streaming service, and one an “independent external advisor” who is not be employed by the company in any capacity.

    o   2nd tier: formation of Digital Curated Content Complaints Council (DCCCC) chaired by a retired judge of the Supreme Court or High Court along with an enumeration of prohibited content.

    Government Rejected the proposal as the current model does not have third party monitoring options, lacks a well-defined Code of Ethics, the minority status of independent advisor and also gives an unclear picture of content prohibition.

    Government also asked IAMAI to look at other self-regulatory models since the government does not support the current one.

    Solutions:
    • From Social/digital media side has to have a corporate responsibility
      • Misinformation has to tackle with information like the one did by YouTube in tackling false information.
      • They have to publish transparency reports from their side like Facebook
    • From the Government Side
      • The government should pass an Act like that of the US to establish a self-regulatory system for media platforms and to hire content moderators to moderate the contents getting published on their platform
      • With recent reports posting a number of internet connections recently crossed the 750 million milestones in India, Digital Literacy Programmes has to be encouraged along with Digital India Mission
      • Model Code of Conduct implemented by Election Commission of India has been effective and efficient in curbing fake news and misinformation in social/digital media during elections, Government should appoint a study committee to explore the scalability of the same to other aspects as well.
    • From Society
      • People should understand that freedom in social/digital media should complement with responsibilities envisaged in the Fundamental Duties.
    Way forward:

    Regulating social/digital media cannot be done from one side. All the stakeholders should have to contribute for the betterment of the platform as a whole is the key else India might follow the USA (Most Americans get their News from suspicious internet source which resulted in extreme polarization of citizen’s view).

  • Strategic autonomy in a multipolar world order | 23rd November

    In News: India has adopted Self Reliance as an objective in the post covid world. While it is seen primarily in economic terms (reducing imports, shifting value chains), self-reliance also means strategic autonomy in foreign policy.

    Strategic autonomy: Strategic autonomy is the ability of a state to pursue its own national interest and preferred foreign policy without being constrained by other states. It has to be formulated as per the security environment to ensure India’s sovereignty and territorial integrity are maintained.

    Evolution of Strategic Autonomy in India

    1st phase- Non-Alignment (1947-1961): During Bipolar world (USA and USSR as power centres)
    • Non-alignment: India played a critical role in the establishment of the Non-Alignment Movement (NAM) (1961), which marked the peak of Third World solidarity.
    • Five-point agreement or the Panchsheel policy of PM Nehru.
    • Preservation of autonomy: India’s objectives were to resist from joining any military blocs while rebuilding its economy and consolidated its territorial integrity.
    2nd phase- Realism (1962-71)
    • India made pragmatic choices on security and political challenges after the 1962 war.
    • India looked beyond non-alignment in the interest of national security. for example, a defense arrangement with the United States in 1964.
    3rd phase- Regional Assertion (1971-91):
    • Tilt towards USSR: signing of the India-Soviet Treaty of Peace, Friendship and Cooperation
    • Getting involved in 1971 war, resulting in the creation of Bangladesh.
    • India conducted peaceful nuclear explosion test in 1974 (Pokhran I) for which it faced sanctions from the USA.
    • Indian peacekeeping operation in Sri Lanka.
    • The creation of the US-China-Pakistan axis threatened India’s prospects as a regional power.
    4thphase-Strategic autonomy (1991-2005)
    • Economic reforms and high economic growth led to an evolution in the country’s strategic outlook.
    • Multi alignment: India reached out to engage the US, Israel, and ASEAN countries more intensively.
    5th phase: India’s strategic autonomy approach in a multipolar world (after 2005)
    • Multi-alignment approach:
    • India has moved from a P2 (US and China) mindset to a P5+2 approach to positioning itself as a global power. e.g.: membership of ASEAN, SCO, Quad.
    • India’s preference towards a ‘free, open, and inclusive Indo-Pacific’ refers to a multipolar regional order within which Delhi can maintain its strategic autonomy.
    • Balancing diplomacy manifested in the Russia-India- China (RIC) meeting and Japan- America –India (JAI) meeting on the sidelines of G20.
    • De-hyphenation policy of India:
    • De-hyphenated Look West Policy, which means India’s relationship with Israel would stand on its merits, independent and separate from India’s relationship with the Palestinians.
    • Issue-based cooperation:
    • In the Middle East, India has reached out to Saudi Arabia, Israel, and Iran. India invited to the Organisation of Islamic Cooperation (OIC) for the first time.
    • Recently India overlooked USA’s sanctions and decided to go ahead with the S-400 deal with Russia.
    • Intensified cooperation with middle powers like UK, EU, Japan, and ASEAN countries to accomplish collective goals.
    • India pulled out of the Regional Comprehensive Economic Partnership and concluded that a China-led economic order in Asia will permanently ruin India’s economic prospects.
    • Use of Hard power and expanding military cooperation:
    • India’s responded strongly to the terror strikes in Pulwama and Balakot airstrikes.
    • India has also signed military logistics support agreements with partner countries such as the USA, France, Singapore, Australia, South Korea.
    • India’s soft power: International yoga day, south Asian satellite, International solar alliance, and SAARC COVID-19 Emergency Fund.

    Changing the world from unipolar to bipolar multipolar:

    • Bipolar (1945-1991): Bipolar world can be defined as a system in which the majority of global economic, military and cultural influence is held between two countries – the USA and USSR. This resulted in Cold War characterized by geopolitical tension between the Soviet Union and the United States.
    • Unipolar (1991-2008): After the disintegration of USSR, the United States became the only superpower and the international system has become unipolar. Assuming the role of global policeman, the USA was able to impose its will on other countries. For Example, the invasion of Iraq in 2003, the war in Afghanistan, and the policy of regime change during President Bush.
    • Multi power (2008-till now): Multipolarity is the emergence of many regional powers along with the withdrawal of the USA as a global policeman.
    • Rise of China: Aggression in the South China Sea, US-China trade war, Clashes with India at LAC (Line of Actual Control) and heavy investment in developing countries through Belt and Road initiative.
    • Rise of BRICS and other major power: BRICS is committed to democratization of international life. It accounts for almost a third of global GDP at purchasing power parity. E.g.; creation of the New Development Bank (NDB) and Contingent Reserve Arrangement (CRA).
    • Creation of international/regional groupings:For example, ASEAN (Association of southeast Asian Nations), APEC (Asia Pacific Economic Cooperation)
    • Russia reasserting its bipolar status: meddling in Syria against US, growing Sino-Russia relations, Russia’s annexation of Crimea
    • Rise of India: India’s participation in Shanghai Co-operation Organization, G-20 Summit, the Mekong-Ganga Co-operation, the International Solar Alliance, etc. India is also recasting its approach. e.g., Quad, SAGAR, Blue dot network, etc.

    Recent Trends: Increasing India- US co-operation

    Strategic partnership

    • The US has designated India as an integral part of the Indo-pacific narrative by the conception of
    • India becoming a non-NATO Ally of the USAin line with countries such as Israel and South Korea for increasing defense cooperation.
    • USA has supported India’s membership in the Australia Group and Wassenaar Arrangement.
    • USA has recently unveiled its New Security strategy (NSS) to promote deeper partnership with India.
    • The 2+2 dialogue: It is the dialogue between Indian External Affairs and Defence Ministers, and their US counterparts to provide a vision for strategic partnership.
    • Security agreements like Logistics Exchange Memorandum of Agreement, Communications Compatibility and Security Agreement (COMCASA)

    Challenges to strategic autonomy:

    • Fear of becoming a US ally: India is actively seeking the cooperation of the US but it has to protect its core national interests from the threats of US intervention. For example- USA threatening India of CAATSA (Countering America’s Adversaries Through Sanctions Act) in relation with Chahbahar port and S-400 deal with Russia.
    • Assertive rise of China: It may result in security threat like Doklam standoff, clashes in Galwan valley across LAC. A possibility of China, Pakistan, Russia, Iran axis.
    • Assertion of Power: Regional assertion of power may lead to arms races and rise in geopolitical uncertainty. For example, arms race between India and China.
    • Dependence on other developed countries for economic growth: India needs technology, capital, markets, skills, defence equipment, international networking, and global cooperation to resolve global issues. Sensitive technology can come only at the behest of compromising strategic autonomy.
    • Impact of US tilt: Complete dependence on US will impact ties with Russia, Iran as well as defense indigenization.

    Way forward:

    • A multi vector foreign policy approach: India’s potential has to be maximized by multi alignment rather than isolation or alliance.
    • Practice creative diplomacy and flexibility: In the destabilised world, there is need to adjust to the fast-changing balance of power and correlate with the countries around us.
    • Cooperate and Compete: India must work with other powers to ensure that its region stays multi-polar (preventing dominance of one country of the region)
    • Active Engagement with middle powers: Intensified cooperation with middle powers like UK, EU, Japan and ASEAN countries to accomplish collective goals.
    • Utilising multilateral institutions: Strategic relationships with multilateral institutions and multiple partners including developing countries, least developed countries.
  • PRISON REFORMS IN INDIA | 21st November, 2020

    The Bureau of Police Research and Development (BPR&D) had invited research proposals from academics and legal experts in 2018. Among those two topics were shortlisted for further research by the Ministry of Home Affairs recently. The topics were

    • “Status of radicalisation in India: an exploratory study of prevention and remedies”
    • “Functioning and impact of open prisons on the rehabilitation of prisoners”
    Bureau of Police Research and Development (BPR&D)

    Bureau of Police Research and Development (BPR&D), the police think tank formed in 1970, under the Ministry of Home Affairs to give a new orientation to the then existing Police Research and Advisory Council formed in 1966.

    Bureau was established with two divisions initially

    1. Research, Statistics and Publication
    2. Development.

    In 2008, the Government further decided to create the National Police Mission (NPM) under the administrative control of BPR&D

    PRISON REFORMS:

    Criminal Justice reforms include reforms in Judiciary and the justice system, Police reforms and prison reforms. Though all 3 reforms are equally important to society at large, prison reforms get the low level of attention in most of the countries including India. This is why it is said Prison is a recruitment centre for the army of crime.

    Present condition of Prison in India:

    NCRB 2019 data says there are 1350 functional jails in India, with a total capacity of approx. 4 Lakh prisoners but actual strength exceeds 4.78lakh. In that 4.3% are women and 69.05% (approx. 3.3 lakh) were under trials and only 30.11% are convicted for crime. Occupation rate in all prison is on an average 118.5%. In general, under trials spend three months to five years in jail before getting bail.

    Need for prison reforms:
    • Indian prisons face three long-standing structural constraints: overcrowding, understaffing and underfunding. The inevitable outcome is subhuman living conditions, poor hygiene, and violent clashes etc.
    • Extradition of fugitive under UN Convention directly depends on prison reforms
      1. g.: India lost the case of bringing KIM DEVY from Denmark who is accused of PURILA ARMS DROP CASE.
    • under trials lose four of their fundamental rights: the right to liberty, freedom of movement, freedom of occupation, and freedom of dignity. And the legal right to vote as well.
    • NHRC figures show that prisoners cut off from family and friends had a 50% more chance of committing suicide than those outside.
    • While 33% of the total requirement of prison officials still lies vacant. Police personnel in India is 181/lakh population which is much less than the UN prescribed 222/lakh.
    Challenges in prison reforms:
    • Prison is a State subject.
    • Prison Act 1894, which governs prisons with modifications is more than a century old and focus more on keeping them alive (headcount) not reform and rehabilitation.
    • No separation between hard hand criminals and petty under trails.
    Committees on Prison reforms:

    Justice Mulla Committee 1983:

    • All India cadre for prison staff and Bringing prison under the concurrent list
    • Government should form a National Policy on Prisons
    • Government to use alternatives to imprisonment such as community service, etc.

    Justice V. R. Krishna Iyer committee on women prisoners 1987:

    • Separate institutions with women employees alone for women offenders.
    • Necessary provisions to restore the dignity of women even if convicted.

    Committee under the chairmanship of Director General, Bureau of Police Research and Development (BPR&D) 2005:

    • used the reports of Justice Mulla Committee Report & Justice Krishna Iyer Committee and made several additional and new recommendations. It also drafted a National Policy on Prison Reforms and Correctional Administration, 2007.
    Draft National Policy on Prison Reforms and Correctional Administration

    • Amending the constitution to include principles of prison management and treatment of undertrials under DPSP, and including prisons in the concurrent list.
    • Enactment of uniform and comprehensive law on matters related to prisons.
    • A department of Prisons and Correctional Services to be opened in each state and UT.

    Justice Amaitava Roy panel on prison reforms:

    In 2018, the Supreme Court appointed this panel. The committee submitted its report on February 2020 with major recommendations includes

    • For overcrowding
      • Special fast-track courts should be set up to deal with petty offences.
      • Lawyers – prisoners ratio: there should be at least one lawyer for every 30 prisoners.
    • For Understaffing
      • The Supreme Court should pass directions to start the recruitment process against vacancies
      • There should be use of video-conferencing for trial.
    • For Prisoners
      • Every new prisoner should be allowed a free phone call a day to his family members to see him through his first week in jail.
      • Alternative punishments should be explored.
    Solutions:
    • Government should frame a National Policy on prison and form a National Commission on prisons to look into matters more seriously.
    • Ensure the holistic development of prisoners like stress management, Yoga, etc.
    • Ratifying the UN Convention against torture and sensitizing the staffs about the need to treat prisoners as humanely as possible.
    • Changing the people’s attitude that “Everyone inside the jail is not a criminal, he is either an offender nor an under trail”.
    • Increasing the budgetary allocation of the Criminal Justice System.
    • Encourage Interactive and community policing in all possible ways.
    • Open prison or semi open prison has to be encouraged like that in UP and Rajasthan.
    Open or Semi open prisons

    Semi-open prisons or open prisons allow convicts to work outside the jail premises and earn a livelihood and return in the evening.

    BENEFITS:

    • Reduce overcrowding and operational costs in prison administration.
    • Reduce the psychological pressure and lack of confidence when they assimilate into society.
    • Develops a humane attitude about the offenders in society.
    • Utilizing the first-of-its-kind advanced DNA FORENSIC LAB in CHANDIGARH and pass The DNA Technology (Use and Application) Regulation Bill, 2018 to reduce the overcrowding by the faster conviction of offenders.
    • Extending Legal Right to Vote prisoners and free legal aid (Directive Principle entrusted in Article 39a of our Constitution).

    Way ahead:

    Indian jails dubbed as a university for grooming criminals structural changes are needed to address the key issues. Else, prisons will continue to be heaven for politically connected criminals and hell for socio-economically disadvantaged undertrials.

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  • India and East Asia Relations | 20th November

    The ASEAN region along with India together comprises a combined population of 1.85 billion people, which is one-fourth of the global population and their combined GDP has been estimated at over USD 3.8 trillion. So the East Asia Region is most important for India and vice versa.

    About 15th East Asia Summit

    15th East Asia Summit was held recently with VietNam as a chair and concluded with the adoption of the Hanoi Declaration. External Affairs Minister Dr. S. Jaishankar represented India at the 15th East Asia Summit (EAS).

    Highlights of Ha Noi Declaration

    • Regional issues unique to ASEAN like the meeting with the ambassadors at Jakarta, regional connectivity, and the narrowing of development gaps within ASEAN were included.
    •  leaders had documents for the regional economy, marine sustainability, dealing with epidemics, and the role of women.
    • The entire document only has mere 12 paragraphs. This is because China, backed by Russia, introduced several ideas at the drafting stage which queered the pitch. To remove these, other substantive ideas were dropped.

    Besides the Hanoi Declaration, the summit also adopted four other leaders’ statements on Marine Sustainability; Epidemics Prevention and Response; Women, Peace and Security; and Steady Growth of Regional Economy.

     About East Asia Summit:

    It was established in 2005. It is a premier forum in the Asia-Pacific region dealing with issues relating to security and defense with the following features;

    • Members: It comprises the ten member states of the ASEAN countries along with 8 members Australia, China, Japan, India, New Zealand, the Republic of Korea, Russia, and the United States. India is a founding member of the East Asia Summit. (In short ASEAN Plus Six, USA, and Russia).
    • Priority Areas: There are six priority areas of regional cooperation within the framework of the EAS which are a) Environment and Energy b) Education c) Finance d) Global Health Issues and Pandemic Diseases e) Natural Disaster Management and f) ASEAN Connectivity.
    • Significance:
      • The members of the EAS together represent 54% of the world population and account for 58% of the global GDP.
      • It is usually held just after the second ASEAN summit of the year when the ASEAN also meets its dialogue partners.
      • They also meet for ASEAN Defence Ministers Meeting (ADMM) Plus meet.

    Importance of East Asia to India:

    India has always considered East Asia as a region of a high economic and strategic priority since the time of Jawaharlal Nehru. India’s linkages with Southeast Asia encompass numerous aspects including culture, diaspora, defence cooperation, economic ties, and India’s own developmental and security concerns. Each of these factors contributes to the strategic significance of countries in the region for India:

    • India’s Indo-Pacific vision is premised upon the principle of ‘ASEAN-Centrality’, which signifies the importance of East Asian countries for India.
    • Vietnam has traditionally been a close friend on defense issues, Singapore is an equally important partner.
    • By virtue of being a maritime neighbor and the biggest country in terms of size, population, and economy, Indonesia has always been a priority country.
    • India has also maintained cordial relations with Malaysia and the Philippines Cambodia, Laos, Myanmar, Thailand, and Vietnam are critically important for the development and security of India’s north-eastern states.
    • Transport linkages and religious tourism have further enhanced their importance.
    • Access to the South China Sea directly improves the Freedom of navigation on the seas and its resources including petroleum products, Polymetallic nodules, etc.

    Initiatives taken to improve the relationship

    • We Shifted our policy from Look East Policy to Act East policy in 2014 with more active engagement in the region. Act East Policy includes the following features:
      • To promote economic cooperation, develop a strategic relationship and cultural ties with ASEAN and East Asian Countries
      • To increase the interaction of the North-Eastern states with other neighboring countries.
      • Focussing on 4 C’s (Culture, Commerce, Connectivity and Capacity Building)
    • Delhi Dialogue is a premier annual event to discuss politico-security, the economic and socio-cultural engagement between India and ASEAN.
    • Joint Naval and Military exercises between East Asian countries Ex. India and Vietnam held a joint naval exercise
    • India – Myanmar – Thailand trilateral highway project which connects Moreh, India with Mae Sot, Thailand via Myanmar.
    • Kaladan project connects Sittwe Port in Myanmar to the India-Myanmar border. It will reduce the distance from Kolkata to Sittwe by approximately 1328 km and will reduce the need to transport goods through the narrow Siliguri corridor.
    • India is developing its maiden deep-sea port in a strategically-located Sabang port in Indonesia.
    • India is also trying to establish a Maritime Transportation Agreement with ASEAN and also Plans for a railway link between New Delhi in India to Hanoi in Vietnam.

    Importance of India to East Asia:

    • India’s long trustworthy relationship and reliability in relationships can help in countering the Chinese Influence in the region and can act as a counterweight in the issues like South China Sea Disputes etc.
    • Since VietNam and other countries are getting improved in merchandise trade, India is a good market for those countries
    • India’s strategic location links the East Asian Countries with the Central Asian Countries.
    • India’s ability to provide Humanitarian and Disaster Relief (HADR)
    • India’s Service sector, growing Tourism market, etc all are important for East Asian Countries.

    Challenges in India and East Asia Relations:

    • Trade imbalance between India and ASEAN, which remains skewed in ASEAN’s favor. India’s trade deficit with ASEAN increased from a mere USD$0.5 billion in 2005-2006 to USD$14.6 billion in 2015-2016.
    • India has not signed RCEP for various reasons like non-transparency in RCEP, RCEP’s non-accounting of India’s service sector relaxations, etc. By not signing the RCEP India also lose access to new market opportunities created in East Asia.
    RCEP(Regional Comprehensive Economic Partnership):

    • It is a trade deal that is currently signed by ASEAN Plus Six Countries except for India. Negotiations on the details of the RCEP have been on since 2013.
    • RCEP is viewed as an alternative to the Trans-Pacific Partnership (TPP), a proposed trade agreement that includes several Asian and American nations but excludes China and India.
    • India recently notified Country of Origin regulations which is one of the issues for the East Asian Countries as they reroute many products from China and sell them to India.
    • India is working on revising the FTA’s between India- Japan and India-South Korea relationships bilaterally which divert the focus of India towards Japan and South Korea.
    • Despite the geopolitical rivalry and consistent trouble in the South China Sea, China is a dominant player because there is no other credible alternative, so China is the largest trading partner and investor for ASEAN.
      • As the ASEAN and other countries except India signed the RCEP agreement the position of China can be strengthened in the near future.
      • China’s constant undermining of ASEAN countries is evident by Cambodia and Laos have become a much closer ally to China because of its Cheque Book Diplomacy
    • The relevance of ASEAN itself is at stake
      • ASEAN countries themselves are not taking a stand and being in a paralyzed state. This is evident by the mere 12 paragraph Hanoi Declaration.
      • There is a regionalization present in the ASEAN itself. For Ex – Cambodia, and Laos almost supports China but at the same time VietNam, the Philippines, and Indonesia opposes China for their authoritarianism.

    Way forward

    • The revival of the US-led TPP can provide an alternative to China-dominated RCEP, which may improve India’s relationship with the East Asian Countries.
    • The concept of QUAD must be expanded to include the ASEAN countries and become a QUAD+ arrangement. Vietnam and Indonesia were expressing a positive note on QUAD in the region.
    • India and Japan together have few initiatives like Asia – Africa Growth Corridor which is going through the ASEAN region has the ability to become an alternative to Belt and Road Initiative
    • Australia-Japan-India together announced the SCRI(Supply Chain Resilience Initiative) to diversify the supply chain instead of relying on one or few countries. ASEAN can play a major role in that.
    • Indo Pacific policies have to improve with the active cooperation from the USA along with India, Japan, and Australia.
    • ASEAN cannot retain its centrality if it becomes a Chinese orbit so the ASEAN itself has to improve the balance between them.
    • Role of India in improving ties:
      • Giving more focus to India’s Act East Policy.
      • Though East Asian countries depend on China for trade relations they never trusted China for their military alliance. This is evident as no country from ASEAN has close military ties with China so far. India can become the military partner after our Atma Nirbar Bharat, Make In India projects successfully implemented.
      • Faster completion of projects. For ex. India – Myanmar – Thailand highway is under construction for more than a decade now. Similar can be said to Kaladan Multimodal transport corridor.

    To make East Asian Countries especially ASEAN more relevant, the only way is to put together coherent alternatives for connectivity, supply chain, and economic well-being. This makes East Asian Economies assert their sovereignty and not fall for China’s ambitions. Then together the relations between the nations can reach cloud nine.

  • why India opted out of RCEP? | 17th November, 2020

    News: Regional Comprehensive Economic Partnership (RCEP) has been signed by 15 countries, without India.

    About RCEP (Regional Comprehensive Economic Partnership)

    RCEP is a trade deal that was originally being negotiated between 16 countries including India, after exit of India, now has been signed by 15 countries.

    Members:

    • 10 Association of Southeast Asian Nations (ASEAN) members: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam
    • 5 other FTA partner countries of ASEAN: Australia, China, Korea, Japan, and New Zealand.

    Aim: To strengthen economic linkages and to enhance trade and investment related activities between participating countries.

    Coverage Areas: RCEP will cover the following areas:

    Trade in goods and services, investment, economic and technical cooperation, intellectual property, competition, dispute settlement, e-commerce, small and medium enterprises (SMEs) and other issues.

    In its original format, RCEP was touted as the “largest” regional trading agreement to this day.

    Why India decided not to join RCEP?

    In November 2019, External Affairs Minister S Jaishankar, delivering the Fourth Ramnath Goenka Memorial Lecture on November 14, had said,

    India’s stance was based on a “clear-eyed calculation” of the gains and costs of entering a new arrangement, and that no pact was better than a “bad agreement”.

    Following are the issues that India faced in signing the RCEP:

    • Market access to India: RCEP also lacked clear assurance over market access issues in countries such as China and non-tariff barriers on Indian companies.
    • Trade Deficit: In financial year 2019, India registered trade deficit with 11 out of the 16 RCEP countries.
      • India’s trade deficit with these countries has almost doubled in the last five-six years – from $54 billion in 2013-14 to $105 billion in 2018-19.
      • India’s trade deficit with RCEP countries stood at $105 billion, out of which China alone accounted for $52 billion.
    • Auto-trigger mechanism: India was unable to ensure countermeasures like an auto-trigger mechanism to raise tariffs on products when their imports crossed a certain threshold.
    • MFN clause: It also wanted RCEP to exclude most-favored-nation (MFN) obligations from the investment chapter, as it did not want to hand out, especially to countries with which it has border disputes, the benefits it was giving to strategic allies or for geopolitical reasons.
    • Opening up of sensitive sectors: India felt the agreement would force it to extend benefits given to other countries for sensitive sectors like defense to all RCEP members.
    • Country of Origin: Signing of RCEP deal would have meant dumping of unwanted products by routing them through other countries i.e. possible circumvention of rules of origin criterion set by India to determine the national source of products.
    • Tariff reductions: The RCEP deal format required India to abolish tariffs on more than 70% of goods from China, Australia, and New Zealand, and nearly 90% goods from Japan, South Korea, and ASEAN. This would have made imports to India, cheaper.
    • Past Experience: The NITI Aayog, in 2017, had published a report that pointed out that free trade agreements have not worked well for India.
      • It analyzed multiple free trade agreements that India signed in the past decade. Among those were FTA with Sri Lanka, Malaysia, Singapore, and South Korea.
      • The Niti Aayog analysis showed that imports from FTA countries increased while export to these destinations did not match up.
      • The Niti Aayog found that FTA utilization by India has been abysmally low between 5 and 25 percent.
    • Plantation products like rubber: Vietnam and Indonesia have very cheap rubber to export.
    • Dairy Sector: New Zealand is the second-largest exporter of milk and milk products. New Zealand’s milk producers are more efficient than India’s small producers. Both Australia and New Zealand are waiting for free access to India for their dairy products.
    • Services trade: India has “long pushed for other countries to allow greater movement of labor and services” in return for opening up its own market. Any agreement on trade in goods without simultaneous agreement on services trade and investment will only harm India’s interests.

    Why not joining RCEP is the right decision for India?

    • China Factor: In the backdrop of rising tensions at India-China borders and the strong presence of China as a center of RCEP trade deal, it would have been difficult for India to reduce its exposure to China’s products, at a time when India is striving hard to find alternatives for China-made products.
    • Made in India: As India is pursuing its objective to become an Atmanirbhar Bharat, domestic industries are required to be shielded by the use of Tariffs. By joining RCEP, India could have to compromise on this front.
    • Recession in India: At a time, when India is gripped under ‘Technical Recession’ and unemployment is on rise, giving a boost to domestic industries becomes of utmost importance.
    • Existing FTAs: As per a few experts, RCEP hardly makes a difference as it has FTAs with ASEAN, and CEPAs (Comprehensive Economic Partnership Agreements) with Japan and South Korea already.
    • Clarity of India’s strategic vision: India’s strategic vision seems clear by not joining the China-centric RCEP, whereas it raises questions regarding the strategic vision of other Indo-Pacific countries whether China is seen as a threat or as a partner by them. This step will have implications for the Indo-Pacific concept and the Quad.

    What are the possible downsides of not joining RCEP?

    • Bilateral trade: India’s decision of not joining RCEP would also negatively impact India’s bilateral trade ties with RCEP member nations, as they may find strengthening economic ties within the bloc, more profitable.
    • Supply chain in Indo-Pacific: Japan’s failed efforts to bring India back into the deal may also impact the Australia-India-Japan informal talks to promote a Supply Chain Resilience Initiative in the Indo-Pacific.
    • China’s dominance: RCEP shows that China can pursue its aggressive political and economic policies without cost, that it cannot be isolated, and that the world cannot delink itself from the Chinese market.

    Way forward

    India, as an original negotiating participant of RCEP, has the option of joining the agreement without having to wait 18 months as stipulated for new members in the terms of the pact.

    • India required to make its domestic industries competitive and strong enough to compete in any international market. It will make negotiating any international agreement easy and profitable.
    • Conclusion of 17th ASEAN-India Virtual Summit and adoption of ASEAN-India Plan of Action for 2021-2025 proves that despite conclusion of RCEP, ASEAN countries are welcoming towards India. India must try to find out possibilities of increasing trade with ASEAN countries.
    • India currently has agreements with members like the ASEAN bloc, South Korea and Japan and is negotiating agreements with members like Australia and New Zealand.
    • Reviews of its existing bilateral FTAs with some of these RCEP members as well as newer agreements with other markets with potential for Indian exports.
    • India should invest strongly in negotiating bilateral agreements with the US and the EU.

     

  • Draft rules for the Code on Social Security, 2020 | 16th November, 2020

    Context: Draft rules for the Code on Social Security, 2020 have been released by Ministry of Labour and Employment for comments.

    Salient features of Draft rules for the Code on Social Security, 2020

    Beneficiaries of the rules will be Unorganised Workers, Gig Workers, Platform Workers, and BOCWs.

    For workers

    • Unorganised workers, gig workers, and platform workers would require to be registered on a central government portal for availing any benefit under any of the social security schemes framed under the Code.
    • The rules also provide for the Aadhaar-based registration of BOCW (Building and Other Construction Workers) on a portal of the Centre, State government or the BOCW welfare board of the State.
    • Draft rules operationalize the benefits of Code for Social Security i.e.
      • Employees’ Provident Fund, Employees’ State Insurance Corporation, Gratuity, Maternity Benefit, Social Security and Cess in respect of Building and Other Construction Workers
      • Social Security for Unorganised Workers, Gig Workers, and Platform Workers.
    • Where a building worker migrates from one State to another he shall be entitled to get benefits in the State where he is currently working and it shall be the responsibility of the Building Workers Welfare Board of that State to provide benefits to such a worker.
    • Provision has also been made in the rules regarding gratuity to an employee who is on fixed term employment.

    For establishment,

    • Rules provide single electronic registration or cancellation.
    • Procedures for self-assessment and payment of cess has been defined with regard to building and other construction workers
    • The rate of Interest for delayed payment of such cess has been reduced from 2% every month or part of a month to 1%.
    • Assessing officer can visit the construction site only with prior approval of the secretary of the Building and Other Construction Workers Board.

    Labour Code on Social Security 2020

    Key Features

    • Consolidation of multiple laws: It will replace nine social security laws, including Maternity Benefit Act, Employees’ Provident Fund Act, Employees’ Pension Scheme, Employees’ Compensation Act, among others.
    • Universalizes social security: Social security has been extended to those working in the unorganised sector, such as migrant workers, gig workers, and platform workers.
    • Covers Agricultural workers: For the first time, provisions of social security will also be extended to agricultural workers also.
    • National Social Security Board: It proposes a National Social Security Board which shall recommend to the central government for formulating suitable schemes for different sections of unorganised workers, gig workers, and platform workers.
    • Social security organisations: The Bill provides for the establishment of several bodies to administer the schemes. These include a Central Board to administer the provident fund schemes and national and state-level Social Security Boards to administer schemes for unorganised workers.
    • Social security fund: The Bill proposes setting up a social security fund using a corpus available under corporate social responsibility.
    • Reducing employee PF contribution: The bill provides for an option for reducing provident fund contribution (currently at 12% of basic salary) to increase workers’ disposable income.
    • Gig Workers: The bill states that the central or state government may notify specific schemes for gig workers, platform workers, and unorganised workers to provide various benefits, such as life and disability cover.
    • Exemption: Under the bill, the central government is empowered to exempt selected establishments from all or any of the provisions of the code and makes Aadhaar mandatory for availing benefits under various social security schemes

    Concerns related to Code on Social Security, 2020

    Following are the concerns that are associated with the Labour Code for Social Security and welfare:

    • It does not provide for a uniform definition of “social security”.
    • There is no dedicated central fund. The proposed corpus will be split into numerous small funds creating a multiplicity of authorities and confusion.
    • There is no clarity on how the proposed dismantling of the existing and functional structures, such as the Employees’ Provident Fund Organisation (EPFO) with its corpus of ₹10 lakh crore will be handed over to a government.
    • Though gig workers are covered under social security schemes none of these benefits are secure, which means, the Central government, from time to time, can formulate welfare schemes that cover these aspects of personal and work security, but they are not guaranteed.  All these benefits will be dependent upon the will of the state government.
        • For Ex; in some states like Karnataka, where a platform-focused social security scheme was in the making last year, will possibly offer some financial assistance by the Centre.
    • The Social Security Code states the provision of basic welfare measures is a joint responsibility of the Central government, platform aggregators, and workers. But doesn’t mention which measures will be provided by which stakeholder.
    • Following recommendations of the National Commission on Labour (2002) have not implemented:
      • Removal of thresholds based on the size of establishment for making certain benefits mandatory and application of social security system to all establishments.
      • the existing wage ceilings for coverage should be removed
    • Mandatory linking with Aadhaar may violate Supreme Court judgment

    Way forward

    •  2nd National Commission on Labour (2002) had recommended a separate law for small scale units (having less than 20 workers) with less stringent provisions for conditions such as payment of wages, welfare facilities, social security, retrenchment and closure, and resolution of disputes.
    • The government in India should also consider granting the gig workers the status of employees of the aggregators. That would automatically provide them all the labor benefits like PF and ESI.
    • The government should consider providing a loan scheme to the platform workers, to end their dependency on the platform aggregator companies.
    • To mitigate operational breakdowns in providing welfare services, a tripartite effort by the State, companies, and workers to identify where workers fall on the spectrum of flexibility and dependence on platform companies is critical.
    • All important recommendations of the National Commission on Labour (2002) and the standing committee on labor 2020 must be incorporated in the bills.

     

     

  • Custodial Violence in India | 13th Nov. 2020
    What is Custodial Violence?
    • Custodial violence primarily refers to violence in police custody and judicial custody. It may be mental or physical in nature.
    Types of Custodial Violence:
    • Physical: This includes methods of physical torture on the victim
    • Physiological: It includes mental torture. For instance, depriving a person of food. It also includes threat and humiliation of the victim
    • Sexual: It is employed through rape/sodomy. It is directed towards the social and psychological harassment of the victims.
    • Rape and torture are the two common manifestations of custodial violence which may turn out to be fatal and cause death.
    State of custodial violence in India:
    • According to the data published by The National Crime Records Bureau (NCRB), between 2001 and 2018, a total of 1,727 persons have died in police custody including those in judicial remand and those who have been arrested but not yet produced before the court.
    • 75% of the people who died in police custody were tortured.
    • Low conviction rate: Apart from custodial deaths, more than 2,000 human rights violation cases were also recorded against the police between 2000 and 2018. And only 344 policemen were convicted in those cases.
    Challenges in curbing custodial violence
    • Absence of strong legislation: India is yet to criminalize custodial violence. The available safeguards have proved insufficient to deal with issues of custodial violence.

    State of prisons:

    • There is a lack of facilities for medical, sanitation, security, and food in the prison.
    • Further, a disproportionate ratio between crime rate and manpower makes the enforcement of laws difficult.
    • India has failed to bring adequate prison reforms to curb the existence of police subculture and punitive violence.

    Non-ratification of UN Convention against torture:

    • The United Nations convention against torture in 1997 was signed by India but the country did not ratify it.
    • While signing only indicates the country’s intention to meet the obligations set out in the treaty, Ratification, on the other hand, entails bringing in-laws and mechanisms to fulfill the commitments.
    • Politicization of police: The Police Act, 1861 which governs the Indian police system has no explicit provisions on the superintendence and general control and directions of police. This leaves the executive with a lot of power to control the law enforcement authorities as per vested interests.
    Police brutalities: The instances of custodial violence point to the mindset of police authorities who believe in a sense of impunity by conducting such types of acts. This is further corroborated by the following facts revealed by NCRB:

      • Underreporting: Only 810 of the 1700 cases of custodial violence were registered as torture and the rest were put as suicide and death category.
      • Low conviction rate: Between 2001 and 2018, no policeman was convicted for custodial deaths across the country except in the states of Madhya Pradesh, Chhattisgarh, Uttar Pradesh, and Odisha.
    • Provisions available to deal with custodial violence. Lack of police accountability: The Prakash Singh guidelines of 2006 had recommended the constitution of an independent complaints authority to inquire into police misconduct. However, this has not been implemented by many states.

    Poor witness protection regime:

    • Investigations related to custodial killings often run into delays due to a lack of witnesses.
    • The lack of strength in the institutional system to protect the witnesses result in the intimidation of the families of witnesses and thus, they turn hostile.
    • Though a witness protection bill was introduced in 2015, it’s yet to get a place in the statute books.

    Constitutional safeguards:

    • Article 20: Right to protection against the conviction of offenses.
    • Article 21: Right to life and liberty.
    • Article 22: Right to protection against arrest and detention in certain circumstances:
      • Being informed of the grounds of arrest.
      • To be defended by a legal practitioner of his choice.
      • Production in the nearest magistrate within 24 hours of the arrest.

    Statutory safeguards :

    • Indian evidence act, 1872: Section 25 mentions that a confession to a police officer cannot be proved as against a person accused of any offense.
    • Code of criminal procedure, 1973 (amendment in 2008): Section 46 and 49 of the code protect those under custody, from torture, who are not accused of an offense punishable with death or life imprisonment.
    • Indian police act, 1861: Section 7 and 29 of the Act provide for dismissal, penalty, or suspension of police officers who are negligent in the discharge of their duties or unfit to perform the same.
    • Indian penal code: Section 330, 331, and 348 were enacted to curb the tendency of policemen to resort to torture to extract confessions.
    • Judicial Pronouncements regarding custodial violence
    • K. Basu v. State of West Bengal, 1987: Under this case, the Supreme Court of India observed that using torture is impermissible and offensive to Article 21.
    • Munshi Singh Gautam and others vs the State of Madhya Pradesh: The Supreme Court ruled that the dehumanizing torture, assault in alarming proportions raise serious questions about the credibility of the rule of law and administration of the criminal justice system.
    • Rama Murthy v. State of Karnataka (1996): The SC while upholding fundamental rights of prisoners identified ‘Torture and ill-treatment’ in prisons as an area that needs reform.
    • Nilabati Behera v. State of Orissa: It ensured that the state could no longer escape liability in public law and had to be compelled to pay compensation.
    Way forward
    • Death due to custodial violence is a heinous act. India, being a flourishing democracy can undertake the following measures to address the issue:
    • Dk Basu guidelines: Implementing the 11-point guidelines mentioned in the DK Basu case by the Supreme Court.
    • Implementation of Law Commission of India’s 273rd Report: The report recommends that those accused of committing custodial torture – be it policemen, military and paramilitary personnel – should be criminally prosecuted instead of facing mere administrative action establishing an effective deterrent.
    • Implementing Prison reforms: Prison reforms are required for ensuring humane conditions and security for the people in custody.
    • CCTV cameras should be installed in police stations and in interrogation rooms.
    • Introduction of a monetary body to keep an eye on the activities in the prison.

    Police reforms:

    • The adoption of an effective mechanism for police will enable police supervisory structures to reduce torture.
    • Police reforms to include ethical policing.
    • Implementing the recommendations of the Prakash Singh guidelines in letter and spirit.
    • The need for the hour is that the government should ratify the United Nations Convention against Torture, which was also recommended by the Law Commission in its 273rd report.
  • NEW FCRA RULES AND ITS BACKGROUND | 12th NOV., 2020

    Context: Foreign Contribution Regulation rules, 2011 have been amended by the Ministry of Home Affairs (MHA) with the notification of new FCRA rules.

    • New rules require any organization that wants to register itself under the FCRA to have existed for at least three years.
    • should have spent a minimum of Rs. 15 lakh on its core activities during the last three financial years for the benefit of society.
    • Office bearers of the NGOs seeking registration under the Foreign Contribution (Regulation) Act must submit a specific commitment letter from the donor indicating the amount of foreign contribution and the purpose for which it is proposed to be given.
    • Any NGO or person making an application for obtaining prior permission to receive foreign funds shall have an FCRA Account.

    What is FCRA (Foreign Contribution Regulation Act)?

    • Foreign Contribution (Regulation) Act: It is an act of Parliament enacted in 1976 and amended in 2010 to regulate foreign donations and to ensure that such contributions do not adversely affect internal security.
    • Coverage: It is applicable to all associations, groups, and NGOs which intend to receive foreign donations.
    • Who cannot receive foreign donations?
      • Members of the legislature and political parties, government officials, judges, and media persons are prohibited from receiving any foreign contribution.
      • However, in 2017 the FCRA was amended through the Finance Bill to allow political parties to receive funds from the Indian subsidiary of a foreign company or a foreign company in which an Indian holds 50% or more shares.
    • Registration: It is mandatory for all such NGOs to register themselves under the FCRA. The registration is initially valid for five years and it can be renewed subsequently if they comply with all norms.
    • Purpose of Foreign contribution: Registered associations can receive foreign contributions for social, educational, religious, economic, and cultural purposes. The filing of annual returns on the lines of Income Tax is compulsory.
    • Ministry of Home Affairs (MHA) New Rules:
      • In 2015, the MHA notified new rules which required NGOs to give an undertaking that the acceptance of foreign funds is not likely to prejudicially affect the sovereignty and integrity of India or impact friendly relations with any foreign state and does not disrupt communal harmony.
      • It also said all such NGOs would have to operate accounts in either nationalized or private banks which have core banking facilities to allow security agencies access on a real-time basis.

    Key provisions of FCR(Amendment), Act 2020:

    • Prohibition to accept foreign contribution:
      • Include certain public servants in the prohibited category for accepting foreign contribution: These include: election candidates, editor or publisher of a newspaper, judges, government servants, members of any legislature, and political parties.
      • The Bill adds public servants to this list. Public servant includes any person who is in service or pay of the government or remunerated by the government for the performance of any public duty.
    • Transfer of foreign contribution: Under the Act, foreign contribution cannot be transferred to any other person unless such person is also registered to accept foreign contribution.
    • FCRA account: The Bill states that foreign contribution must be received only in an account designated by the bank as FCRA account in such branches of the State Bank of India, New Delhi. No funds other than the foreign contribution should be received or deposited in this account.
    • Definition of persons: The FCRA 2010 allows the transfer of foreign contributions to persons registered to accept foreign contributions. The term ‘person’ under the Bill includes an individual, an association, or a registered company.
    • Regulation: The Act states that a person may accept foreign contributions if they have obtained a certificate of registration from the central government or obtained prior permission from the government to accept foreign contribution. The bill makes Aadhaar mandatory for registration.
    • Restriction in utilisation of foreign contribution: The Bill gives government powers to stop utilisation of foreign funds by an organization through a “summary enquiry”.
    • Reduction in use of foreign contribution for administrative purposes: The bill decreases administrative expenses through foreign funds by an organisation to 20% from 50% earlier.
    • Surrender of certificate: The Bill allows the central government to permit a person to surrender their registration certificate.

    Need for such amendments:

    • To monitor Misuse of funds: In Parliament, the government alleged that foreign money was being used for religious conversions. For instance, in 2017, the government barred American Christian charity, Compassion International.
    • To prevent loss to the GDP: An official report quantifying the GDP losses allegedly caused by environmental NGOs was prepared during the NPA period, indicating a foreign conspiracy against India.
    • To enhance transparency and accountability: The annual inflow of foreign contribution has almost doubled between the years 2010 and 2019, but many recipients of foreign contribution have not utilised the same for the purpose for which they were registered or granted prior permission under the said Act.
    • To regulate NGO’s: Many persons were not adhering to statutory compliances such as submission of annual returns and maintenance of proper accounts.

    Concerns associated with the recent amendments

    • Over-regulation of NGO: New regulations put excessive conditions on civil society organizations, and educational and research institutions that have partnerships with foreign entities.
    • Lack of Consensus: The amendments were not discussed with the stakeholder and passed with limited discussion in Parliament.
    • Against Constitutional rights: According to the International Commission of Jurists, the new law is incompatible with international obligations and India’s own constitutional provisions on rights.
    • Incompatible with international laws: The United Nations Human Rights Council resolution on protecting human rights defenders says that no law should criminalize or delegitimize activities in defense of human rights on account of the origin of funding.
    • Discourage social work: Thousands of NGOs serve extremely disadvantaged sections. Only presumption of guilt against them all, followed by control, restricts their scope of voluntary actions.
    • Selective barriers: The over-regulation appears to be towards selected categories of global ideas and ideals such as environmentalism, human rights, and civil liberties.
    • Reduce investments and technology flow: As a growing economy, India has been proactive in seeking global capital and technology. Strict rules governing FCRA will impact investments.
    • Against Indian cultural ethos: Prime Minister has often cited the ancient Indian ethos of Vasudhaiva Kutumbakam as the framework for its global engagement. New rules do not go well with India’s legitimate ambitions to be a global player.
    • Additional cost of compliance: Every FCRA-registered NGO will have to open an FCRA-marked bank account with a designated branch of State Bank of India in New Delhi. Around 93% of FCRA NGOs are registered outside Delhi, and will now have to open a bank account in the capital.
    • Lowering the cap on administrative expenses: The micro-management and cost structures vary from project to project. It is difficult for NGOs whose work revolves around advocacy rather than projects. In 2018-19, there were 1,328 NGOs whose administrative expenses exceeded 20% of their total foreign funds.

    What can be the way forward?

    • Delink religious propagation and conversions from the question of foreign funding.
    • There are adequate laws against conversion by inducement. It cannot be decided against the touchstone of the source of funds, native or foreign.
    • Seamless sharing of ideas and resources across national boundaries is essential to the functioning of a global community.
    • The government must commit itself to the ancient Indian ethos of Vasudhaiva Kutumbakam as the framework for its global engagement and should not be hostile against the NGOs who criticize the government for their work.

    Civil society’s supplements government works and works at the grass-root level. Civil societies should not be discouraged unless there is reason to believe the funds are being used to aid illegal activities.

  • Effectiveness of Monetary Policy in India | Nov. 11th, 2020

    What is Monetary Policy?

    • Monetary policy is the process by which the RBI controls the supply of money, often targeting an inflation rate or interest rate to ensure price stability.
    • Quantitative Instruments: General or indirect (Cash Reserve Ratio, Statutory Liquidity Ratio, Open Market Operations, Bank Rate, Repo Rate, Reverse Repo Rate, Marginal standing facility and Liquidity Adjustment Facility (LAF))
    • Qualitative Instruments: Selective or direct (change in the margin money, direct action, moral suasion).

    Recent trends: RBI a few ago released its monetary policy report (MPR)

    • The repo rate (the rate at which the RBI lends short-term funds to commercial banks) stands at 4.0 percent and the reverse repo rate (the rate at which the RBI borrows) stood at 3.35 percent.
    • As per RBI, transmission to bank lending rates has improved as evident from the decline in the lending rate of banks on fresh loans.
    • Rise in food Inflation owing to floods in eastern India, lockdown-related disruptions and cost-push pressure, etc.
    • Global financial market volatility caused by the impact of the COVID-19 is most likely to exert pressure on the Indian rupee.
    • Real Gross Domestic growth will remain negative for the whole 2020-21 period.
    Monetary Policy Committee:

    The idea of MPC was mooted by Urjit Patel Committee.

    Objective:

    • To maintain price stability and accelerate the growth rate of the economy.
    • Inflation targeting: RBI is supposed to ensure that retail inflation — measured by Consumer Price Index — stays at 4% level. However, the RBI has a margin of 2 percentage points either way.

    Composition:

    • The Monetary Policy Committee (MPC) is constituted by the Central Government as per Section 45ZB of the amended RBI Act, 1934.
    • Monetary Policy Committee (MPC) is a 6-member committee. Three members are from RBI while three other members are nominated by the Government of India.
    • Members from the RBI are the Governor who is the chairman of the MPC, a Deputy Governor and one officer of the RBI
    • The government members are appointed by the Centre on the recommendations of a search-cum-selection committee.
    • Informal Indian economy: The monetary policy affects only around 60% of loans/credit in the Indian economy which are sourced from formal channels (Banks and NBFCs).Challenges to Monetary policy functions of RBI:
    • Supply chain disruptions: The MPC uses CPI inflation to adjusts its policy rates. However, the CPI doesn’t factor the rise in inflation driven by supply-chain dislocations. For example, restriction on movement resulted into a shortage of essentials.
    • Weak policy transmission: Both the government and the RBI are concerned that the cumulative easing has not yet been reflected in the lowering of their lending rates by banks.
    • Limitation of Inflation targeting: Inflation has been accompanied by declining borrowing in the formal sector likely affecting investment leading to rise in unemployment (according to NSSO, unemployment in India has been highest in the last 45 years).
    • Triangular balance-sheet: In the aftermath of the IL&FS default in 2018, an additional dimension of liquidity and solvency of the NBFC sector has been added to the prevailing twin balance-sheet problem. Borrowing easy money cannot solve governance issues.
    • Gold economy: The Indian household saves in gold/jewelry rather than financial instruments. This curtails RBI from effectively circulating money in the economy.

    Is Inflation targeting a good policy?

    Inflation targeting:

    • It is a monetary policy strategy used by central banks to maintain inflation within a specific range.
    • Narasimham (2000) and Rajan (2007) Committees recommended the implementation of inflation targeting in India.

    Inflation targeting as a good policy

    • It increases the transparency and credibility of the central bank consequently allowing it to carry out its monetary policy more effectively.
    • It helps to stabilize inflationary expectations in an uncertain future.
    • Increases the focus on domestic considerations and enables quick response to domestic economy shocks.

    Limitations of Inflation targeting policy

    • The policy doesn’t address the sudden shocks in the economy and inefficient transmission mechanisms.
    • Too much weight to inflation stabilization might prove detrimental to the stability of real economy and other growth objectives.
    • Requirement of Number of preconditions like well-developed technical infrastructure for forecasting, modelling and data availability etc.
    • India lacks suitable conditions for successful implementation of inflation targeting. For example, lack of adequately developed financial markets, confidence of global capital markets is low, independence of the RBI etc.
    • Policy of inflation targeting will lead to highly unstable and inappropriate exchange rate.

    Need for independent MPC:

    • To form credible governance policy: RBI should be independent to decide on the precise corrective action for banks with high NPAs, the desirable state of liquidity and the prudential norms to be observed by banks.
    • To ensure low and stable inflation: For instance, Governments use pro populist policy before elections to provide a short-term boost to growth. This often leads to long-term inflation.
    • Sustain Credit availability: To ensure adequate flow of money and credit to required areas.
    • To prevent sudden appreciation and depreciation of currency. For example, In Turkey lira had depreciated over 80% against the dollar in the 12 months due to government interference.
    • Sustainable Investments: Independent MPC will boost the investors’ confidence and will enhance credit ratings there by attracting more investments.
    • To avert crisis: Mismanagement between fiscal and monetary policy led to increased Sovereign debt in developing economies. For Example, Greek Crisis.

    Way forward:

    • Develop a legal process to ascertain RBI’s responsibilities and accountability.
    • Ensuring RBI’s autonomy: The governor should be made responsible and accountable to Parliament. The RBI act should be amended to provide a guaranteed tenure of the governor and deputy governors for their effective functioning.
    • Change in policy: There is need to look at an indicator of inflation that excludes food and fuel and include structural factors responsible for price rise.
    • Cooperation between Government and RBI: There should be mutual cooperation and coordination between RBI and Government in large at public interests for an efficient and sustainable economy.
  • The issue of Demographic Dividend in India | Nov. 10th, 2020

    In News: India can achieve the goal of self-reliance (Atma Nirbharta) by enhancing the capability of youth.

    About Demographic Dividend:
    • According to the United Nations Population Fund (UNFPA), demographic dividend meansthe economic growth potential that can result from shifts in a population’s age structure. The change in age structure is typically brought on by a decline in fertility and mortality rates.
    • India has one of the youngest populations (62.5% of its population in the age group 15-59) in an aging world.
    • The demographic dividend leads to an increased labor supply that will increase the production of goods and boost savings and investment on the other.
    • The first demographic dividend occurs during the demographic transition process, when the working-age population increases as a share of the total population, and the percentage of both young and old dependents decreases.
    • The second demographic dividend results from an increase in adult longevity, which causes individuals to save more in preparation for old age. This increase in savings can thus contribute to capital accumulation and economic growth.
    Major findings of the United Nations Population Fund (UNFPA) on demographic dividend:
    • Demographic dividend phase in India: Report says the availability of demographic dividend in India, started in 2005-06 and will last till 2055-56 based on the following facts:
      • India’s Population structure: Close to 30% of India’s population is in the age group 0-14 years. The elderly in the 60-plus age group is still a small proportion (8%) of the country’s population. The working-age group 15-59 years accounts for 62.5% of India’s population. The working-age population will reach the highest proportion of approximately 65% in 2036.
      • Regional variations in the degrees and timings of fertility decline: Reports also highlight that demographic dividend is not available in all the states at the same time because Northern states are predominantly youthful whereas southern and western states are maturing.
    Steps to be taken 
    • India has just a decade’s time to realize the youth demographic dividend. So, the country should launch an Indian Youth Guarantee (IYG) program.
      • The European Union Youth Guarantee (EU-YG) launched a similar programmein 2010 at a time when youth unemployment rates were soaring above 20%.
      • In order to ensure the gainful and productive engagement of youth, the functioning of an Indian youth Guarantee (IYG) initiative as an implementing framework with legal backing could help.
    • Youth Component Planthe plan could help in allocating budgetary resources under a separate head on the lines of the Special Component Plan for the Scheduled Castes and the Tribal Sub-Plan.
    • IYG’s goalyoung people graduating from college or losing a job either find a good quality job suited to their education and experience or acquire skills required to find a job through an internship within a fixed time period.
      • The district administration and local bodies should be incorporated by IYG for more effective outcomes.
      •  Existing youth schemes and skilling infrastructure need to be merged and modernised.
    • The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)has been very effective in providing rural livelihood security and social protection yet only about 4% of youth in the labour force have been impacted by it.
    Dissatisfactory status of Indian youth

    • According to the 2018 State of Working India Report the youth unemployment rate is at least 18.3% (3.47 crore youths)
    • About 30% of youth fall under the ‘neither in employment nor in education’ category and 33% of India’s skilled youth are unemployed
    • The CMIE estimated a loss of 14 crore jobs in April alone of which 2.7 crores concerned youth.
    • 50 lakh youth are expected to be entering the workforce annually.
    • Implementation of rural youth employment program alongside MGNREGA: Even though an urban youth employment program will be a new involvement, the rural youth employment should be instituted alongside MGNREGA.
    Demographic dividend can be a demographic disaster:
    • The growth benefit of a demographic dividend is not automatic. Much depends on whether the increase in working population can be trained, and enough jobs created to employ the 10 million more people who will join the labour force every year.
    • Substitute existing jobs: While digital technologies may enable the creation of new products and more productive jobs, they may also substitute existing jobs.
    • Lack of skills: India may not be able to take advantage of these opportunities, due to a low human capital base and lack of skills.
    The youth development Index 

    •  The Youth Development Index (YDI) in India serves as an advisory and monitory tool for youth development and helps recognize priority areas, gaps, and alternative approaches specific to each State.
    • YDI can be revisited and deployed to play a vital role in crafting a region-specific IYG.
    • Lack of jobs combined with a demographic dividend will increase the share of the population that is dependent on the working population increasing the economic insecurity of the elderly, as there will be fewer people generating wealth.
    Why India should focus on demographic dividend?
    • Economic growthBetter economic growth brought about by increased economic activities due to a higher working-age population and lower dependent population. The demographic dividend has historically contributed up to 15 % of the overall growth in advanced economies.
    • To become a super power globally: Demographic dividend has historically contributed up to 15% of the overall growth in advanced economies. For instance, Japan was among the first major economies to experience rapid growth because of the changing population structure and emerge as an economic superpower.
    • Effective policymaking: Fine-tuning of the planning and implementation of schemes and programs by factoring in population dynamics is likely to yield greater socio-economic impact and larger benefits for people.
    • Human capital of the worldWith more than 65% of the working-age population, India will rise as an economic superpower, supplying more than half of Asia’s potential workforce over the coming decades.
    Various opportunities related to the demographic dividend in India:
    • Labour supplyThe first benefit of the young population is the increased labour supply, as more people reach working age. However, the magnitude of this benefit depends on the ability of the economy to absorb and productively employ the extra workers.
    • Capital formationAs the number of dependents decreases individuals save more. This increase in national savings rates increases the stock of capital in developing countries and provides an opportunity to create the country’s capital through investment.
    • Female Human capital: A decrease in fertility rates result in healthier women and fewer economic pressures at home. This provides an opportunity to engage more women in the workforce and enhance human capital.
    • Economic growth: Another opportunity is produced by increased domestic demand brought about by the increasing GDP per capita and the decreasing dependency ratio. This leads to demand-driven economic growth. Growth, education, better economic security, and a desire for more durable goods are the cause and consequence of young demographics.
    • InfrastructureIncreased fiscal space created by the demographic dividend enables the government to divert resources from spending on children to investing in physical and human infrastructure.
    • Skilled workforce: Most sectors of the Indian economy would require a more skilled workforce than the present. It would be both a challenge and an opportunity for India to provide its workforce with the required skill sets and knowledge to enable them to contribute substantially to its economic growth.
    • Migration:It presents some opportunities that can arise from having demographic changes, particularly the demographic dividend and interstate migration to overcome labor shortage in some parts.
    Challenges of demographic dividend in India:
    • Enhancing human capital: According to ASSOCHAM, only 20-30 % of engineers find a job suited to their skills. Thus, a low human capital base and lack of skills is a big challenge.
    • Low human development: India ranks 130 out of 189 countries in UNDP’s Human Development Index, which is shocking. Life expectancy at birth in India (68 years) is much lower than in other developing countries.
    • Informal economy: Informal nature of the economy in India is another challenge in reaping the benefits of demographic transition in India.
      • Nearly 216 million people are engaged in the agriculture sector, are in the informal economy where not only they earn lower wages, but with little social security and few days of employment in a year.
    • Jobless growth: There is a mounting concern that future growth could turn out to be jobless due to deindustrialization, de-globalization, the fourth industrial revolution, and technological progress. As per the NSSO Periodic, Labour Force Survey 2017-18, India’s labour force participation rate for the age-group 15-59 years is around 53%, that is around half of the working-age population is jobless.
    • Asymmetric demographyThe growth in the working-age ratio is likely to be concentrated in some of India’s poorest states and the demographic dividend will be fully realized only if India is able to create gainful employment opportunities for this working-age population.
    • Issue of tilted sex ratio: Declining female labour force participation: According to data from the International Labour Organization and World Bank, India’s female labor force participation rates have fallen from 34.8% in 1990 to 27% in 2013. Without women’s participation, India can’t dream of reaping the demographic dividends.
    Way Forward:
    • For states with less scope:
      • UNFPA backs a differential approach in forward-looking policymaking and program planning to join the demographic dividend opportunity in those states where the windows for opportunity are closing soon.
      • The focus in the states where the demographic dividend window is yet to open will have to be threefold such as addressing harmful practices such as child marriage, access to quality sexual and reproductive health services and family planning services to all, and provisioning of health, education, life, and vocational skills to all the young people.
    • Good governance: Effective avenues for citizen input, well-functioning institutions, respect for the rule of law, low level of corruption, respect for property rights, the sanctity of contracts, etc. are important aspects of good governance that enable the equal opportunity to all.
    • Building human capital: Investing in people through healthcare, quality education, jobs, and skills helps build human capital, which is key to supporting economic growth, ending extreme poverty, and creating a more inclusive society.
    • Skilling: India’s labour force needs to be empowered with the right skills for the modern economy. Government has established the National Skill Development Corporation (NSDC) with the overall target of skilling/ up-skilling 500 million people in India by 2022.
    • Academic-industry collaboration: Will help to synchronize modern industry demands and learning levels in academics.
    • Education: Enhancing educational levels by properly investing in primary, secondary, and higher education. India, which has almost 41% of the population below the age of 20 years, can reap the demographic dividend only if with a better education system.
    • Health: Improvement in healthcare infrastructure would ensure a higher number of productive days for the young labor-force, thus increasing the productivity of the economy. The success of schemes like Ayushman Bharat and the National Health Protection Scheme (NHPS) is necessary. Also, the nutrition level in women and children needs special care with effective implementation of the Integrated Child Development (ICDS) program.
    • Job Creation: The nation needs to create ten million jobs per year to absorb the addition of young people into the workforce. Promoting businesses’ interests and entrepreneurship would help in job creation to provide employment to the large labor force.
    • Urbanisation: Schemes such as Smart City Mission and AMRUT needs to be effectively and carefully implemented.
  • Indo-Pacific and India | 7th Nov. 2020

    Although, the term Indo-Pacific has been used previously as well, “Indo-Pacific” is a fairly recent addition to the geopolitical lexicon. For almost a century, the term Asia-Pacific region was used for constructing policies and strategies of the west. This has changed in the second decade of the 21st century.

    India’s concept of the Indo-Pacific region stretches from the western coast of North America to the eastern shores of Africa.

    Evolution of Indo-Pacific Concept

    With the rise of China and its efforts to dominate the region, the term has found its way into official documents such as national security strategies or defense white papers as well as into the rhetoric of the elite countries.

    1. In 2007 the term found mention in the speech of Japanese Prime Minister Shinzo Abe in Delhi, where he called the Indian and Pacific Oceans as one common space.
    2. In 2011, the term found mention in the speech Hillary Clinton, the then US Secretary of State, in the context of US ‘Pivot to Asia’, but not found mention in official documents.
    3. In 2016, Japanese PM Shinzo Abe, declared his Free and Open Indo-Pacific strategy, to be the core of Japan’s foreign policy doctrine.
    4. In November 2017, US President presented his “vision” of a Free and Open Indo-Pacific (FOIP) at the Asia-Pacific Economic Cooperation (APEC) sum­mit. Since then the term “FOIP” has been enshrined in official documents of the US.
    5. In 2018, French President Emanuel Macron speaks about France’s strategy for the Indo-Pacific.
    6. In June 2018, India’s PM Modi presented India’s concept of the Indo-Pacific region at Shangri-La dialogue.

    Although the geographical definition of the Indo-Pacific region is a bit different for these countries, all countries are on common ground with reference to the importance of a rules-based international order.

    India’s concept of Indo-Pacific

    The term “Indo-Pacific” is gradually replacing the previously common term, “Asia-Pacific”, which excluded India from its geographical extent.

    The concept of Indo-Pacific for India was cleared by India’s PM Modi during the speech in 2018, in Shangri La Dialogue, Singapore.

    India’s concept of Indo-Pacific includes: “inclusiveness”, “openness”, “ASEAN centrality” that is not directed against any country:

    • Openness: A free, open, and inclusive order in the Indo-Pacific, based upon respect for sovereignty and territorial integrity of all nations, peaceful resolution of disputes through dialogue and adherence to international rules and laws.
    • Inclusiveness: India’s concept of the Indo-Pacific is inclusive in nature, and supports an approach that respects the right to freedom of navigation and overflight for all in the international seas.
    • ASEAN-Centrality: India’s Indo-Pacific vision is premised upon the principle of ‘ASEAN-Centrality’.

    India’s approach is based on cooperation and collaboration, given the need for shared responses to shared challenges in the region.

    Divergence in the conceptualisation of Indo-pacific region and India-US concepts

    The Indo-Pacific construct means different things to different people.

    The divergences involve, among other things,

    1. the extension of the Indo-Pacific as a geographical area,
    2. the objectives associated with each respective concept,
    3. the focus on or weighting of different policy fields within each respective con­cept,
    4. the question of China’s inclusion or exclusion

    US concept of Indo-Pacific aims to contain China and is thus an expression of the growing strategic rivalry between Washington and Beijing. Whereas for India

    For India, Indo-Pacific is the vast maritime space stretching from the western coast of North America to the eastern shores of Africa as highlighted by Prime Minister Narendra Modi at his keynote speech at the Shangri-La Dialogue in 2018. Whereas for US, it extends up to the west coast of India which is also the geographic boundary of the US Indo-Pacific command whereas

    While the US does not consider China a part of its Indo-Pacific construct, India has gone to great length to highlight it as an inclusive construct for the whole region.

    Importance of Indo-Pacific region
    • Growing Importance of India: The popularity of the term Indo-Pacific over Asia-Pacific reflects the growing importance of India for the western developed countries in the region.
    • Maritime advantage against China: It can be considered a reaction to the militarization of waters in the Indo-Pacific, the South China Sea (SCS) in particular, and the growing heft of the Chinese economy across Asia and Africa.
      • For India, growing maritime power in the Indo-Pacific region will provide it with a new weapon against China’s misadventures on India’s borders.
    • International Trade: The Indo-Pacific ocean system carries an estimated 65 per cent of world trade and contributes 60 percent of global GDP. Ninety per cent of India’s international trade travels on its waters.
      • The two-third container trade of the world passes through this region. The economies of many countries are dependent upon the Indo-Pacific sea routes for their trade and energy supply.
      • Many western countries including US are concerned due to shifting in the economic trajectory from the Atlantic to the Indo-Pacific and the rise of China has added to it.
      • That is why a country like Germany, physically distant but an economic stakeholder in the Indo-Pacific, has released a strategy for the region. After France and the Netherlands, it is the third European country to do so.
    • Natural Resources: Maritime territories have emerged as depositories of vital resources ranging from fish stocks to minerals and offshore oil and gas. The South China Sea, for instance, is estimated to hold some 10% of the global fish resources as well as 11 billion barrels of oil and 190 trillion cubic feet of gas.
    Steps taken by India to promote Indo-Pacific vision

    Indo-Pacific Division: Ministry has recently set up an Indo-Pacific Division as well as an Oceania Division, and placed them under the same Additional Secretary level officer, which is a sign of India’s commitment to this critical geography.

    SAGAR: India’s policy on maritime cooperation in the Indian Ocean Region (IOR) is based on the approach of SAGAR (Security And Growth for All in the Region). Under this doctrine, India believes in an Indo-Pacific that is free, open, and inclusive, and one that is founded upon a cooperative and collaborative rules-based order.

    Indo-Pacific Regional Dialogue (IPRD): IPRDs are being held for engaging the global strategic community in an annual review of India’s opportunities and challenges in the Indo-Pacific region.

    Indo-Pacific Oceans’ Initiative (IPOI): Initiative was launched at the East Asia Summit held in Bangkok in 2019. IPOI draws on existing regional cooperation architecture and mechanisms to focus on seven central pillars conceived around

    1. Maritime Security;
    2. Maritime Ecology;
    3. Maritime Resources;
    4. Capacity Building and Resource Sharing;
    5. Disaster Risk Reduction and Management;
    6. Science, Technology and Academic Cooperation; and
    7. Trade Connectivity and Maritime Transport.

    The context of ASEAN centrality as envisaged in IPOI perfectly synergizes with India’s Act East Policy, East Asia Summit, and Quad configuration.

    Maritime exercises: India has taken part in many military exercises Like Malabar naval exercises in the region. In the Malabar exercise, India, Australia, Japan, and the US naval forces participated.

    Participation at international platforms: India has been an active participant in mechanisms like the Indian Ocean Rim Association (IORA), the East Asia Summit, and ASEAN Defense Ministers Meeting Plus. All these engagements portray India’s increasing involvement in the Indo-Pacific.

    Challenges for India
    • Definition of the concept: While the Indo-Pacific construct is the US-led maritime initiative and is yet to find the right direction amongst its partners, government change in the US, might prove fatal to this initiative.
      • US concept of the Indo-Pacific region is not at all-inclusive, unlike India. US concept is based on its regional rivalry with China, whereas India won’t like to present this concept as a mere China-centric, as clarified in its Indo-Pacific vision.
    • It has actually been taken to heart by China which, in the meantime, has extended its naval footprint from Djibouti at the western extremity of the Indian Ocean where it has established a base to the eastern extreme of the western Pacific where it stakes a claim to the land and sea features.
    • India’s weak economic presence: For a politico-economic construct such as the Indo-Pacific to survive, there must be strong economic partnerships and linkages among its members. Merely focusing on strategic talk and possible military cooperation will not work because, at some point, the unavoidable economic logic will kick in.
      • India’s economic engagements with the countries of the Indo-Pacific region remained insufficient due to domestic political considerations. Exiting from RCEP is one such example. On the other side, China has major economic relations with all the states except the US.
      • India’s role in the Indo-Pacific will remain limited if it does not prove to be a major economic partner to the States in the region.  
    • China’s defense partnership: China has become a major defence supplier to several of the region’s states including Bangladesh, Myanmar, Sri Lanka, Indonesia, Malaysia, the Philippines, and Thailand.
    Conclusion

    India should not let the Indo-Pacific concept turn into a US-led concept directed against China, it has more long-term potential to become a strong regional economic alliance that will promote prosperity and peace in the region. Thus, rather than focusing on China’s containment, the focus of the Indo Pacific initiative should be on connectivity, enhancing maritime security, counterterrorism, non-proliferation, and cyber issues.

    Read more

    https://forumias.com/blog/answered-examine-the-strategic-significance-of-indo-pacific-region-for-india-also-discuss-how-india-should-tackle-chinese-dominance-in-indo-pacific-region/

    https://forumias.com/blog/answered-discuss-indias-concept-of-indo-pacific-why-indo-pacific-region-has-a-strategic-significance-for-india/

     

  • SC/ST (Prevention of Atrocities) Act: New developments and Evolution
    SC has delivered a judgment in a recent appeal filed by a person booked under the SC/ST (Prevention of Atrocities) Act for allegedly abusing a Dalit woman in her house.

    SC judgment on SC/ST (PoA)act

    In this latest judgment related to the SC/ST Act, the Supreme Court has said:  

    • All types of intimidations or insults to persons belonging to Dalit or tribal communities will not be categorized as an offense under the Scheduled Castes and Scheduled Tribes (Prevention of Atrocities) Act.
    • Only insults specifically intended to humiliate the victim for his caste should be tried under the SC/ST act.

    What was the case?

    • Judgment was delivered in response to the hearing of an appeal filed by a person, booked under the Act for allegedly abusing a Dalit woman in her house.
    • The court found that allegations against persons do not fulfill the basic ingredient under the Act that such humiliation should have happened in public view.
    • Since the incident occurred within four walls in the absence of the public, he can be tried under ordinary criminal law but not under the SC/ST act.

    Evolution of SC/ST (Prevention of Atrocities) Act, 1989

    Constitutional Provisions

    Article 17 of the constitution abolished the practice of untouchability. In line with the constitutional provisions under article 17 and Articles 14, 15 , the untouchability (offenses) Act, 1955 was passed in parliament. In 1976, the act was renamed as protection of the civil rights act.

    But due to the ineffectiveness of previous acts, ‘Scheduled Caste and Scheduled Tribe (Prevention of Atrocities) Act, 1989’ was enacted.

    SC/ST Act, 1989

    Scheduled Castes and Tribes (Prevention of Atrocities) Act 1989, also known as the SC/ST Act, was enacted to protect the marginalized communities against discrimination and atrocities.

    • The Act lists various offenses relating to various patterns or behaviors inflicting criminal offenses and breaking the self-respect and esteem of the scheduled castes and tribes community, which includes denial of economic, democratic, and social rights, discrimination, exploitation, and abuse of the legal process.
    • Under section 18 of the act, provision for anticipatory bail is not available to the offenders.
    • Any public servant, who deliberately neglects his duties under this act, is liable to punishment with imprisonment for up to 6 months.

    SC/ST Prevention of Atrocities (Amendment) Act, 2015

    Scheduled Castes and the Scheduled Tribes (Prevention of Atrocities) Amendment Act, 2015 was introduced to make the act more stringent with the following provisions:

    • It recognized more instances of “atrocities” as crimes against SCs and STs.
    • It provided for the establishment of exclusive special courts and special public prosecutors to try offenses under the PoA Act.
    • Act defined the term ‘wilful negligence’ in the context of public servants at all levels, starting from the registration of the complaint to dereliction of duty under this Act.
    • If the accused was acquainted with the victim or his family, the court will presume that the accused was aware of the caste or tribal identity of the victim unless proved otherwise.

    2018 SC judgment

    Supreme Court in its Kashinath Mahajan judgment, introduced the following safeguards to the accused under SC/ST act.

    Key guidelines

    • The bar on anticipatory bail under the Act need not prevent courts from granting advance bail if there is no merit in a complaint
    • “Preliminary enquiry” to be conducted in all cases before registration of FIRs.
    • The person can be arrested by an investigating officer, only if the “appointing authority” (in the case of a public servant) or the SP (in the case of others) approves such arrest. 

    2018 amendment to the Act

    In 2018, in response to this dilution of the act and public uproar against it, Parliament introduced Section 18A to overturn safeguards introduced by the Supreme Court.

    • Preliminary inquiry shall not be required for registration of a First Information Report against any person.
    • No approval is required before the arrest of the accused under this act.
    • It rules out any provision (Section 438 of the CrPC that deals with anticipatory bail) for anticipatory bail for the accused.

    Prathvi Raj Chauhan case, 2020

    In this case, the constitutional validity of section 18-A of the Scheduled Caste and Scheduled Tribes (Prevention of Atrocities) Amendment Act, 2018 was challenged.

    • In this case, a three-judge bench of the Supreme Court of India has upheld the Constitutional validity of section 18-A.
    • pre-arrest bail should be granted only in extraordinary situations where a denial of bail would mean a miscarriage of justice
    • Anticipatory bail can only be given in exceptional cases by Courts and not in every case.

    How effective has been SC/ST act?

    Following are some of the figures that raise questions over the effectiveness of the SC/ST PoA Act:

    • Increase in crimes: As per the NCRB report, 2019, Crimes against members of Scheduled Castes and Scheduled Tribes communities increased by 7.3% and 26.5% respectively in 2019.
    • State-wise: Uttar Pradesh has the most number of cases of crime against SCs – 11,829 cases, which is 25.8% of the total such cases in the country followed by Rajasthan with 6,794 cases (14.8% of all cases), Bihar (14.2%), and Madhya Pradesh (11.5%).
    • Conviction rate: According to a status report on the implementation of the PoA Act, released by the National Dalit Movement for Justice (NDMJ), over the decade prior to 2018, the average conviction rate under(Prevention of Atrocities) Act
       for cases of atrocities against Dalits and Adivasis remained at 25.2% and 22.8% respectively.

    What more should be done?

    • Registration of Cases: Standard Operating Procedure (SoP) should be developed for filing and investigating cases so that there is no confusion or doubt among the investigators about the procedure to be followed.
    • Training and Capacity building of judges, lawyers, and policemen is required in these types of cases
    • Prosecution: Successful prosecution of genuine cases by the lawyers must be rewarded.
    • Research: There is a requirement for research into the types of punishment, as an alternative to imprisonment that can prevent future crimes by individuals or communities.

    Way forward

    As signified in the figures above, Laws alone cannot realize the vision of our constitution-makers to make India a country where everyone has equal rights, opportunities, and access to justice, it is only one of the steps required.

    It requires the educational and economic advancement of the backward communities like SCs and STs in India and educational reforms all over the country so that root cause of the discrimination can be dealt with.

     

  • Gig Economy and platform workers under labor laws in India | November 2nd, 2020

    What is the Gig Economy and platform work economy?

    • It is characterized by short-term contracts or freelance work as opposed to permanent jobs. It often involves connecting with customers through an online platform. Example: Delivery boys of app-based food, consultants, bloggers.
    • The platform work economy is sometimes referred to as the gig  worker economy, but Gig economy is a broader term that includes platforms
    • In India, there are about 3 million gig workers that include temporary workers including independent contractors, online platform workers, contract firm workers, and on-call workers.

    Provisions for gig and platform workers in labour laws of India

    Code on Wages, 2019 expands the definition of an employee by using  ‘wages’ as the primary definition to define who an ‘employee’ is. But it doesn’t explicitly mention or cover the gig workers, platform workers under this definition.

    Important features of Labour Code on Social Security & Welfare, 2017

    • Platform workers: For the 1st time Code on Social Security bill attempted to define platform workers in the following words;

    “Platform work means a work arrangement outside of a traditional employer-employee relationship in which organisations or individuals use an online platform to access other organisations or individuals to solve specific problems or to provide specific services or any such other activities which may be notified by the Central Government, in exchange for payment.”

    • Universalizes social security: Social security has been extended to those working in the unorganized sector, such as migrant workers, gig workers, and platform workers.
    • National Social Security Board: It proposes a National Social Security Board which shall recommend to the central government for formulating suitable schemes for different sections of unorganized workers, gig workers, and platform workers.
    • Gig Workers: The bill states that the central or state government may notify specific schemes for gig workers, platform workers, and unorganised workers to provide various benefits, such as life and disability cover.
    • Social Security Fund: Government will establish a social security fund that will be funded by central or state governments, gig worker and aggregator contributions, the corporate social responsibility fund, or other sources.
      • Contribution of Gig/platform companies has been capped at 1-2% of their annual turnover but contribution should not be more than 5% of the amount payable to gig workers.

    Need for providing benefits to the gig workers

    Unemployment and low consumption:

    • Periodic Labour Force Survey released in 2019 from the Ministry of Statistics and Programme Implementation shows the unemployment rate at a 45-year high, at 6.1%; the highest levels of joblessness is among urban youth.
      • It also reported that domestic consumption has reduced, industrial growth has flatlined, private investments are lower, and market volatility has hit drivers of employment. Thus, many undergraduates and diploma holders are looking towards the gig economy as a solution to get employment.

    High employment provider

    • As per Human resources firm TeamLease estimates, in the 2nd half of 2018-19, 13 lakh Indians joined the gig economy.
    • Despite becoming the biggest job provider, Most of these workers don’t see the gig economy as a full-time option due to job insecurity, amplified by complex contracts, the changing rates of incentives, and the lack of control over impossible targets.
    • Gig economies work outside the traditional employment structures excluding them from minimum-wage protection and social security.

    Suggestion read also:- Today current affairs

    Important role played by gig workers during a pandemic

    • Platform workers were responsible for the delivery of essential services during the pandemic at great personal risk to themselves. They have also been responsible for keeping platform companies afloat despite the pandemic-induced financial crisis.
    • This has cemented their role as public infrastructures that also sustain demand-driven aggregators. The dependence of companies on platform workers merits a jointly assumed responsibility by public and private institutions to deliver welfare measures.
    • Despite all this, gig workers faced a continuous dip in pay and no rewards for being essential workers. The base pay of Swiggy workers was reduced from Rs. 35 to Rs. 10 per delivery order. All India Gig Workers Union formed to protest against this discrimination.

    Financial dependencies of workers on the gig economy

    Workers require existing assets like vehicular assets for entry into the platform economy, thus they have to rely on intensive loan schemes provided by workers rely on intensive loan schemes. It creates a dependency of workers on Platform Company.

    It removes the flexibility benefit provided by the economy to its workers and make him liable to work under their terms and conditions.

    Issues in Labour laws coverage for gig workers

    • Even though platforms are part of the idea of how work will evolve in the future, the current laws do not see them as future industrial workers.
    • Due to the absence of clear provisions in the labour codes, Platform delivery people can claim benefits, but not labour rights. The terms ‘gig worker’, ‘platform worker’ and ‘gig economy’ only appears in the Code on Social Security but not in other labour codes.
    • This makes them the beneficiary of the programs released by the state, but not of labor rights.
        • It doesn’t provide them a right to move the court to demand better and stable pay or regulate the algorithms that assign the tasks.
        • This also means that the government or courts cannot pull up platform companies for their choice of pay, or how long they ask people to work.
    • Though gig workers are covered under social security schemes none of these benefits are secure, which means, the Central government, from time to time, can formulate welfare schemes that cover these aspects of personal and work security, but they are not guaranteed.  All these benefits will be dependent upon the will of the state government.
        • For Ex; in some states like Karnataka, where a platform-focused social security scheme was in the making last year, will possibly offer some financial assistance by the Centre.
    • The Social Security Code states the provision of basic welfare measures is a joint responsibility of the Central government, platform aggregators, and workers. But doesn’t mention which measures will be provided by which stakeholder.

    What should be done?

    • Amendments to labor laws in Ontario and California have shown a move towards granting employee status to platform workers, thus guaranteeing minimum wage and welfare benefits.
    • This is the view propagated by international agencies in the EU, including the European Trade Union.
    • The government in India should also consider granting the gig workers the status of employees of the aggregators. That would automatically provide them all the labor benefits like PF and ESI.
    • The government should consider providing a loan scheme to the platform workers, to end their dependency on the platform aggregator companies.
    • To mitigate operational breakdowns in providing welfare services, a tripartite effort by the State, companies, and workers to identify where workers fall on the spectrum of flexibility and dependence on platform companies is critical.
  • Hate speech: A misused freedom | 31st October, 2020

    What is hate speech? 

    The term hate speech is understood as any kind of communication in speech, writing or behavior that attacks or uses pejorative or discriminatory language with reference to a person or a group on the basis of their collective identity, be it race, ethnicity, religion, gender, or sexuality.

    Hate speech threatens two key doctrines of democracy-

    • The guarantee of equal dignity to all
    • The public good of inclusiveness.

    Criteria to identify hate speech:

    1. The extremity of the speech.
    2. Incitement
    3. Status of the author of the speech.
    4. Status of victims of the speech.
    5. Potentiality of the speech.
    6. Context of the Speech.

    Regulation of Hate speech in India

    • Constitutional provisions: Article 19(2) of the Constitution gives all citizens the right to freedom of speech and expression but subject to “reasonable restrictions” for preserving inter alia “public order, decency or morality”.
    • Statutory provisions:   India prohibits hate speech by several sections such as Section 95 of CRPC Section 124A or Section 153A or Section 153B or Section 292 or Section 293 or Section 295A of the Indian Penal Code.

    Various Causes of hate speech-

    1. Historical underpinnings- Any historical enmity between various religious or societal groups can motivate them to do hate crimes. During the independence struggle, both communities were divided which still has an impact. For example; the divide and rule policy.
    2. Vote bank politics: Often vote bank politics, use various communal or emotional tools to garner the vote of few groups by inciting hatred in them. They use false stories, news, etc to incite such incidents.
    3. Acceptance of hate by society: Sometimes society, in general, accepts hatred against a particular group or nation based on past experience of atrocities. E.g many groups see refugees or migrated people as their enemies and islamophobia in European countries.
    4. Illiteracy-Lack of education prevents the overall development of an individual. Still, about 23% of the population in India is illiterate. This prevents the development of tolerance and understanding of individuality in them.
    5. Consensus in society: Increasing unemployment lead to the development of feeling of hatred against a particular group especially refugees and migrated one. People see them as an enemy and one who snatches their rights. This phenomenon is worldwide. For eg, thousands of people of the northeast living in Bangalore headed to Guwahati, following rumors of violence targeting them.
    6. Prejudice and bias-Bias toward a particular group can be a reason for hate crimes. E.g 704 cases of crimes against Northeast people in Delhi in 3 years. It can incite hate crime against them without making any difference between culprit and innocent.
    7. Patriarchy-This hold true mainly in case of hate crime against women. Honour killing of women is mainly due to patriarchal mindset where women are attached to one’s falsified honour and women seen as an object tied to family respect.
      • For instance, in 2010 when Nirupama, a student of journalism, was killed by her family members in Jharkhand for planning to marry her boyfriend from another caste.
    8. Lack of strong laws-lack of strong and clear laws, poor implementation results in low conviction rate. So, culprits are let to roam freely.
    9. Social media: Fake news, propagandais often invoked on social media against a particular group to destabilise a society. For example, Muzaffarnagar riots in 2013.

    Challenges in regulating hate speech

    • Freedom to speech-Any regulations for social media content should follow globally accepted norms of freedom of speech and impartiality which is hard to apply with the restrictions on the content.
    • Independent Regulator– An independent regulator can be misused in geographies where the idea of impartiality is used to the wish of the ruling regimes.
    Social Media & hate speech

    Impact of social media: Social media spreads messages way faster than other forms of mass media.

    • Nearly 60,000 posts are shared on Facebook in just one second across the globe.
    • Nearly 8,00,000 messages are sent in just one second across WhatsApp.
    • Almost 70,000 searches are made on Google in just one second.

    How social media aids hate speech?

    • Unregulated Information sharing on platform– As exposed in a report by an international media organisation, Facebook is symptomatic of a larger infection of unregulated information dissemination through social media.
    • Hate speech against Rohingya minorities– A Reuters investigation found that Facebook didn’t appropriately moderate hate speech and genocide calls against Myanmar’s Rohingya minorities.
    • Prioritise business interest over common good– It is even accused of conducting a psychological experiment on its user’s emotions and more aspect of their personality.   For example, Recently Facebook was accused of conducting a psychological experiment on its user’s emotions and more aspect of their personality.
    • Insensible approach– Google has been accused of delaying the removal of malicious content even after volunteer groups had reported it.
    • Privacy Regulation– The introduction of privacy regulations such as the European Union’s General data protection regulation (GDPR) signaled the fact that self- regulations of the platforms didn’t work in the desired way.

    Way forward 

    • Code of conduct: the European Union has also established a code of conduct to ensure non-proliferation of hate speech under the framework of a ‘digital single market.’It requires collaborative, independent and inclusive regulation that is customised to regional and cultural specifications while adhering to global best practices of content moderation and privacy rights.
    • The Law Commission of India recommended that new provisions in IPC are required to be incorporated to address the issue of hate speech.
    • Punitive action: The legislature and political parties should suspend or dismiss members who are implicated in hate crimes or practise hate speech. Strict disciplinary act should be taken against such individuals and parties.
    • The electronic and print media should stop showing or publishing hateful comments and threats. Any act of incitement of hatred should be punished by cancelling license or through imprisonment or fine.
    • Imbibing values: Values of tolerance and respect that are common to all religions should be preached and schools should revitalise courses on the directive principles of our Constitution.
    • If the speech or statement or art of work have an element of incitement of hate, it should be treated as a hate speech under section 153(a) of IPC and not as a Blasphemy.
  • Industrial Revolution 4.0: challenges and way forward | 29th October, 2020

    Industrial Revolution 4.0 refers to the fourth industrial revolution related to manufacturing and chain production. It is driven by breakthroughs in digital technologies, such as artificial intelligence, robotics, 3D printing, the IoT, Big Data etc.

    The Drivers of Change:

    • Technological breakthroughs: New technological innovations such as Big Data, 3-D printing, artificial intelligence and robotics is bringing transformative impact on the nature work.
    • Demographic Changes: the world’s population is ageing, putting pressure on business, social institutions and economies. The shortage of a human workforce in a number of rapidly-ageing economies has necessitated automation.
    • Rapid urbanisation: The UN projects that by 2050, the world’s urban population will increase by some 72%. Rapidly growing cities have become drivers of a new industrial revolution.
    • Shifts in global economic power: Power shifting between developed and developing countries with a large working-age population will attract investments and become a driving force for the future of work.
    Recent Trends of Employment in India:

    • Continued Presence of Informal Economy: Nearly 90% of India’s workforce belongs to the informal sector.
    • Contractualization of employment: The share of contract workers in total employment in India increased from 15.5% in 2000-01 to 27.9% in 2015-16. The share of directly hired workers fell from 61.2% to 50.4% over the same period.
    • Gig Economy: It is characterised by short-term contracts or freelance work as opposed to permanent jobs. It often involves connecting with customers through an online platform. Example: Delivery boys of app-based food, consultants, bloggers. In India, there are about 3 million gig workers — temporary workers including independent contractors, online platform workers, contract firm workers and on-call workers.
    • Resource scarcity and climate change: According to the report Global Trends 2030, demand for energy and water is forecast to increase by 50% and 40% respectively by 2030. Jobs in alternative energy, new engineering processes, product design and waste management and re-use will be created.

     Challenges to the Future of Work: Industry 4.0

    • Low Job Creation: Job creation has not been sufficient to absorb the growth in the number of people seeking jobs. As of 2016, there were some 198 million jobless people globally who have been actively seeking employment
    • Poor Quality Employment: Globally, nearly 43% of employed people were in own-account or contributing family work which is often characterized by low pay, informality and limited social security.
    • Income inequality: ILO observes that although workers have become increasingly productive, the benefits of their work have increasingly accrued to capital income and to those at the top of the income distribution.
    • Gender Pay gap: Though female labour force participation has increased the gender pay gap remains a major concern with women still being paid 20% less than men.
    • Digital Divide: Only 53.6% of all households have internet access. In emerging countries, the share is only 15%. Given the rapid technological advancements, digital divide remains a key challenge for skill development and employment opportunities.
    • Impact of Technology on Employment: There are fears that technological development will lead to job destruction. Automation could be harmful for labour-intensive industries in India such as textiles, finance, construction, hospitality, travel, tourism, media, electronics, mining, agriculture, transportation and entertainment.
      • The Indian ICT sector is susceptible to AI/robots replacing workers in its major IT export markets.
      • The retail sector, the largest employer of lower skill youth, is job shedding as e-retail accelerates and human jobs in logistics, warehousing and delivery services are being robotised.

    Way Forward:

    • Universal Labour Guarantee: All the countries should pledge to provide a universal labour guarantee that protects fundamental workers’ rights, an adequate living wage, limits on hours of work and safe and healthy workplaces
    • Lifelong Learning: It is important to provide a universal entitlement to lifelong learning that enables people to acquire skills and to reskill and up skill.
    • Investment to support Work Transition: Investments in the institutions, policies and strategies that will support people through future of work transitions should be increased.
    • Agenda for Gender Equality: It is important to strengthen women’s voice and leadership, eliminating violence and harassment at work and implementing pay transparency policies in order to achieve gender equality.
    • Social Protection: A guaranteed social protection from birth to old age that supports people’s needs over the life cycle should be provided
    • Governance for Digital Platforms: An international governance system for digital labour platforms should be established to protect minimum rights of workers
    • Sustainable Work: Incentives are required to promote investments in key areas for decent and sustainable work- in areas of green, rural economy, small and medium enterprises
    • Human centric business and economic Model: Distributional dimensions of growth, the value of unpaid work performed in the service of households and communities and the externalities of economic activity, such as environmental degradation should be taken into account for a human centric business and economic Model
    • Roadmap for India: India should adopt Chard Dham Roadmap for steering technological change.
      • Gyaan Dham: a national observatory for scoping the tech-to-work equation and its trajectory should be established. Databases on existing and future trends, sector by sector, needs to be created.
      • Kaushalya Dham: It means nurturing “human capabilities” for Tech-Economy 4.0 work. To meet labour market needs, potential skill gaps must be closed through the NEP and comprehensive training infrastructure.
      • Suniyojan Dham: It involves transformative investments in multi-stakeholder ecosystems to empower the youth and women through future-of-work transitions.
      • Samajik Nyaya Dham: It means ensuring a just transition through a new social compact among all stakeholders and a universal social protection floor. A human-centred and equity-based approach in future labour market policies and standards is needed.
      • Upakram Dham: It involves taking special initiatives enabling India to leverage the world’s third-largest ICT workforce to pole-vault into Tech4 excellence. India’s diversity, scale for neural net, data richness, huge base of engineers, mathematicians and coders of AI available or trainable at scale, and decent ecosystems in ICT metros are critical assets.
  • What is new land law for Jammu and Kashmir?[infographic] | 28th Oct., 2020
    Centre notifies new Jammu and Kashmir land law that omits ‘permanent resident’ as criteria.

    New J&K land law

    • Before the repeal of Article 370 and Article 35-A in August last year, non-residents could not buy any immovable property in Jammu and Kashmir.
    • As per section 96 of the J&K Reorganisation Act, 2019, the Centre has the powers to repeal or amend the laws.

    Union Territory of Jammu and Kashmir Reorganisation (Adaptation of Central Laws) Third Order, 2020

    • New law explicitly omitted the exclusive rights on land earlier available to its ‘permanent residents’. No domicile or permanent resident certificate is required to buy land in Jammu and Kashmir.
    • The term ‘permanent residents of the State’ has been removed from important provisions of laws.
    • Land acquired by the government for industrial or commercial purposes can now be allowed to be disposed of or sold to anyone. The amended laws open up urban or non-agricultural land for purchase by outsiders.
    • It now permits contract farming on agricultural lands. Nothing shall prohibit the transfer of ownership of land for ‘contract farming’, or grant of lease or mortgage for the loan. Earlier, it was limited to the mortgage for loans.
    • It doesn’t impose any limit on the quantum of area for building a residence or a shop, as it exists in certain hilly states including Himachal Pradesh.
    • Real Estate (Regulation & Development) Act, 2016 has been notified in the UT.

    Jammu and Kashmir Industrial Development Corporation (JKIDC)

    The government has provided for the establishment of the Jammu and Kashmir Industrial Development Corporation (JKIDC) for industrial development in J&K.

    Objectives of JKIDC;

    • To promote and assist in the rapid and orderly establishment, growth, and development of industries in the Union Territory of Jammu & Kashmir.
    • To develop land for the establishment of industries, and establish and manage industrial estates.

    Powers of JKIDC

    JKIDC will be empowered:

    • To acquire and hold both movable and immovable properties.,
    • To purchase any land by agreement or to take on lease or under any form of tenancy
    • To make available buildings on hire or sale to industrialists or persons intending to start industrial undertakings.

    Declaration of an area as Strategic Area

    If requested by an Army officer not below the rank of Corp Commander in written, government can declare an area as Strategic Area within a local area.

    This area will only be used for direct operational and training requirements of armed forces and may be excluded from the operation of this Act and rules/ regulations.

    Restrictions on usage of agricultural lands

    There are no restrictions on purchase of farm land by non-J&K agriculturists.

    Through Centre has completely barred sale of agricultural land to “non-agriculturist”, but it has provided for several situations under which sale can still happen.

    Such land can be transferred to Government or a Company or a Corporation or a Board established, owned and controlled by the Government or a Government Company.

    Allowed usage

    • For ‘public purposes’. Such transfers can also happen in favor of public trusts for ‘charitable purposes’.
    • Promotion of healthcare or senior secondary or higher or specialized education

    All such “non-agriculturists” would have to use the allotted land only for purposes intended during allotment and would never be recognized as agriculturists.

    Dilution of restrictions on conversion of agricultural land to non-agricultural land

    • Earlier such conversion could only be done only with the permission of the Revenue Minister. It can now be done with the permission of the District Collector.
    • Special protection has been given to grazing land or those that grow fuel and fodder. Albeit they too can be converted with the Collector’s permission.

    Law is not applicable to the Union Territory of Ladakh. A separate law will be notified for the same.

    Gupkar Alliance has termed this law as a massive assault on the rights of the people of Jammu and Kashmir.

  • Farm bills 2020: Can Punjab challenge a central law?

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    Farm bills and Punjab’s bills against them

    • Punjab bills
    • About farm bills and associated concerns
    • Farmers’ Produce Trade and Commerce (Promotion and Facilitation), bill 2020
      • Issues with Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020:
    • Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Bill, 2020
      • Issues with Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Bill, 2020
    • Essential Commodities (Amendment) Bill, 2020
      • Issues with Essential Commodities (Amendment) Bill, 2020
    • Can a state challenge the central laws?

    Context: Punjab has passed various farm bills to amend the recent centrals farm laws.

    Punjab farm bills

    The Farmers’ (Empowerment and Protection) Agreement on Price Assurance and Farm Services (Special Provisions and Punjab Amendment) Bill, 2020:

    • Wheat and paddy sell shall be valid in case the seller pays price greater than or equal to the MSP announced by the central government.
    • Punishment of three years and a fine has been proposed if any person or company or corporate house signs a contract wherein the farmer is compelled to sell his produce at less than the MSP.
    • In case of any differences with the buyer of his produce, farmers will be empowered to approach a civil court, besides seeking remedies available under the central act.
    The Essential Commodities (Special Provisions and Punjab Amendment) Bill, 2020
    • It seeks to amend the ‘The Essential Commodities (Amendment) Act, 2020’.
    • It seeks to ensure status quo ante as on June 4, 2020 with regard to implementation of the Central Act namely, ‘The Essential Commodities (Amendment) Act, 2020’.
    Code of Civil Procedure (Punjab Amendment) Bill, 2020

    Another bill seeking an amendment to Section 60 of The Code of Civil Procedure, 1908 was also moved.

    • Section 60 of The Code of Civil Procedure, 1908 provides for attachment or decree of various properties such as land of farmers and exempts properties like bonds or other securities for money, debts, share.
    • New bill inserts a provision for exemption of agriculture land not exceeding 2.5 acres from Section 60 of The Code of Civil Procedure, 1908.

    About farm bills and associated concerns

    The Centre passed three Bills — the Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Bill, Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Bill and Essential Commodities (Amendment) Bill.

    Farmers’ Produce Trade and Commerce (Promotion and Facilitation), bill 2020

    Farmers’ Produce Trade and Commerce (Promotion and Facilitation), bill 2020 aims to Break the monopoly of government-regulated mandis and provide farmers and traders freedom of choice of sale and purchase of Agri-produce.

    Following are salient features Farmers’ Produce Trade and Commerce (Promotion and Facilitation), bill 2020:  
    • Trade of farmers’ produce:
      • It allows intrastate and inter-state trade of farmers’ produce outside the physical premises of markets notified under State Agricultural Produce Marketing legislation.
      • In addition to mandis, freedom to do trading at farmgate, cold storage, warehouse, processing units etc.
    • Electronic trading: It proposes an electronic trading in transaction platform for ensuring a seamless trade electronically.
    • Abolition of cess or levy for sale: The farmers will not be charged any market fee, cess or levy for sale of their produce and will not have to bear transport costs.
    Issues with Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020:
    • Lack of regulatory oversight and reporting: The bill provides for non-APMC markets but do not provide any mechanism for its regulation. There are concerns that lack of regulation might lead to unregulated trade detrimental to the primary purpose of providing market access to farmers. Further, it does not provide proper grievance redressal mechanism.
    • Loss in revenue for states: The market fee, rural development fee, and arhatiya’s commission are big sources of revenue for some states. With states not permitted to levy market fee/cess outside APMC areas under the new legislation, Punjab and Haryana could lose an estimated Rs 3,500 crore and Rs 1,600 crore each year respectively.
    • Fear over MSP: According to critics, the dismantling of the monopoly of the APMCs is sign of ending the assured procurement of food grains at minimum support prices (MSP).
    • Setting Price: APMC continues to set the reference price even for private players. In the absence of APMC, there will be no alternative for a large market that can actually set price signals. Global experience such as, the French dairy producers and the dairy farmers’ co-operatives in the U.S suggest that buyer cartels will start fixing the market price.

    Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Bill, 2020

    Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Bill, 2020 is aimed to provide a legal contract for farmers to enter into written contracts with companies and produce for them.

    Key Features of Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Bill, 2020:
    • Farming agreement: It provides for a farming agreement between a farmers and buyers (processors, wholesalers, aggregators, wholesalers, large retailers, exporters etc.) before the production or rearing of any farm produce.
    • Pricing of farming produce: The agreement should mention the following:
      • The price of farming produce
      • For prices subjected to variation, a guaranteed price for the produce and a clear reference for any additional amount above the guaranteed price
      • process of price determination
    • Dispute Settlement: A farming agreement must provide for a conciliation board as well as a conciliation process for settlement of disputes.
    • Protection to farmers: Farmers have been provided adequate protection. Sale, lease or mortgage of farmers’ land is totally prohibited and farmers’ land is also protected against any recovery.
    Issues with Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Bill, 2020:
    • No mechanism for price fixation: The bill provides protection to farmers against price exploitation, but does not prescribe the mechanism for price fixation. There are concerns that the free hand given to the private sector could lead to corpotirization of agriculture and farmer exploitation.
    • Unorganised nature of the farm sector: Given the unorganised nature of the farm sector and farmers’ lack of resources for a legal battle with private corporate entities, there are concerns that formal contractual obligations will eventually be detrimental for poor farmers in the country.
    • Lack of assurance about MSP: The bill doesn’t provide any assurance about Minimum Support Price (MSP) in the contract-farming. Critics have opined that there will be no declaration of MSP for all crops, determined by Swaminathan formula of C2 costs plus 50 per cent.
    • Fear of intermediaries: Though the bill seeks to eliminate middlemen from the supply chain, the critics have raised concerns that middlemen will operate in the form of sponsors or farm service provider for contract-farming.
    • Deprivation of farmers from their land: The legislation provides for “farming agreements” “with insurance or credit instrument”. This will entail credit linkage with mortgaging of farmer’s land. There are concerns that in case the contract suffers a financial loss, a farmer might have to pay debt through their land.
    • Subjecting food security to world markets: There are concerns that MNC food giants and their Indian collaborators will integrate Indian agricultural production with world markets. This will reduce the freedom of farmers and undermine food security.
    • Threat to India’s food and political sovereignty: There are concerns that companies will promote banned and dangerous GM seeds, terminator seed technology. This will erode India’s seed sovereignty and threaten food and political sovereignty.

    Essential Commodities (Amendment) Bill, 2020

    • Essential Commodities (Amendment) Bill, 2020 amends the Essential Commodities Act, 1955.
    • Aim: To increase competition in the agriculture sector and enhance farmers’ income. It also aims to remove fears of private investors of excessive regulatory interference in their business operations.
    Key Features of Essential Commodities (Amendment) Bill, 2020
    • Regulation on food items: Under the Essential Commodities Act, 1955, the Government regulates the production, supply and distribution of certain commodities it declares ‘essential’ in order to make them available to consumers at fair prices. The bill removes cereal, pulses, oilseed, edible oil, onion and potatoes from the list of essential commodities.
    • Stock Limit: It requires that imposition of any stock limit on agricultural produce must be based on price rise. A stock limit may be imposed only if there is: (i) a 100% increase in retail price of horticultural produce; and (ii) a 50% increase in the retail price of non-perishable agricultural food items.
    Issues with Essential Commodities (Amendment) Bill, 2020
    • Undermining Food security: Easing of regulation of food items would lead to exporters, processors and traders hoarding farm produce during the harvest season, when prices are generally lower, and releasing it later when prices increase. This could undermine food security since the States would have no information about the availability of stocks within the State.
    • Deregulation of food items– As the bill removes cereals, pulses, oilseeds, edible oils, onion and potatoes from the list of essential commodities, it will deregulate the production, storage, movement and distribution of these important food commodities.

    Can a state challenge the central laws?

    Powers of the central government

    Article 256 of the constitution of India provides for the obligation of States and the Union.

    • The executive power of every State shall be so exercised as to ensure compliance with the laws made by Parliament and any existing laws which apply in that State, and the executive power of the Union shall extend to the giving of such directions to a State as may appear to the Government of India to be necessary for that purpose.
    • Thus, under article 256 of the constitution, states are in obligation to Implement the laws framed by the central government.
    • Article 257 (1) of the constitution of India provides that state governments shall not exercise their executive powers in a manner that will “impede or prejudice” the exercise of the executive powers of the Union.
    • If a state is not implementing the act, Article 355 of the Constitution can be invoked to issue warning to the concerned state which states that the government of every State is carried on in accordance with the provisions of this Constitution.”
    • If the state ignores the warning under Article 355 as well, the Centre can impose President’s rule under Article 356.
    Rights available to the state government
    • If any central law is Infringing upon the rights or powers of a state, then a state can move to the Supreme Court.
    • Article 131 confers exclusive jurisdiction on the Supreme Court in disputes involving States, or the Centre on the one hand and one or more States on the other.
    • Unlike individuals, State governments cannot complain of fundamental rights being violated thus cannot move to SC or High Courts under Article 32 or Article 226 of the Constitution.

    Previous cases

    • In 2011, in the State of Madhya Pradesh v. Union of India and Another, the court said that the Central laws can be challenged in the State High Courts and Supreme Court under Article 32 and held that the constitutional validity of a central law cannot be normally challenged under Article 131.
    • In the State of Jharkhand vs. State of Bihar and (2014), the Supreme Court upheld Article 131 as an appropriate tool to test the constitutionality of central law. The court ruled that the condition for invoking the court’s jurisdiction under Article 131 was that the dispute should involve a question on the existence or extent of a legal right and not a political one.

    Thus, presently, the States can move the Supreme Court under Article 131 if any legal right derived from any statue or the Constitution of India is infringed. Further states cannot question the legality of central law on a political or ideological basis.

  • Delhi Air pollution on rise: Reasons and initiatives taken

    With the onset of winters, Delhi Air pollution has started increasing.  Delhi’s air quality remains in the ‘poor’ category with stubble burning causing a rise in pollution levels.

    Air pollution in Delhi and the whole of the Indo Gangetic Plains is a complex phenomenon that is dependent on a variety of factors. The first and foremost is the input of pollutants, followed by weather and local conditions.

    What is air pollution?

    Read – Air Quality Index

    Air pollution is the introduction into the atmosphere of chemicals, particulates, or biological materials that cause discomfort, disease, or death to humans, damage other living organisms, damage natural and built environment

    What are air pollutants?

    • A substance in the air that can be adverse to humans and the environment is known as an air pollutant. Pollutants are classified as primary and secondary
    • A primary pollutant is an air pollutant emitted directly from a source. Like Volcanic eruptions or fires and carbon monoxide from vehicles.
    • A secondary pollutant is not directly emitted as such, but forms when other pollutants (primary pollutants) react in the atmosphere. For ex: Tropospheric ozone or “bad ozone”, which is formed due to its interaction with other gases and substance.

    Why Delhi air pollution rises in October?

    Natural factors

    • Northwesterly Winds: Month of October marks the withdrawal of Monsoon winds (South-West) from North India, leading to the arrival of North-Easterly winds.
      • Monsoon winds carry Moisture and rainfall all over the country, whereas northwesterly winds carry dust from dust storms originating in Rajasthan and sometimes Pakistan and Afghanistan.
      • As per the study conducted by scientists at the National Physical Laboratory, 72 per cent of Delhi’s wind in winters comes from the northwest, while the remaining 28 per cent comes from the Indo-Gangetic plains.
      • One of such examples is a storm of 2017, originated from Iraq, Saudi Arabia and Kuwait that led to a drastic dip in Delhi’s air quality in a couple of days.
    • Low-level inversion: Another factor is the temperature dip in the month of October. Low-temperature results in low-level inversion i.e. the layer that stops the upward movement of air from the layers below. It leads to the concentration of pollutants in the air at the lower heights.
    • Wind speed: High wind speed in summers facilitates the faster movement of particulate matters in the air. As the wind speed decreases in winters, the air is not able to draw the pollutant away from a region.
    • Landlocked Geography of Delhi: Geography of Delhi and the region around in the northern plains is landlocked. On the one hand source wind from North-West is already having pollutants, on the other, the Himalayas obstruct the escape route of air. Moreover, large buildings and other structures in Delhi also reduce airspeed.
      • It is the reason that Chennai with the third-highest number of automobiles in India faces far less pollution in the city in comparison as coastal reason provides air with an effective route to enter and exit.

    Anthropogenic factors

    • Industrial chimney wastes: There are a number of industries which are source of pollution. The chief gases are SO2 and NO2. There are many food and fertilizers industries which emit acid vapours in air.
    • Automobiles pollution: The Toxic vehicular exhausts are a source of considerable air pollution. In all the major cities of the country about 800 to 1000 tonnes of pollutants are being emitted into the air daily, of which 50% come from automobile exhausts. According to the IIT Kanpur study, 20 % of PM 2.5 in winters comes from vehicular pollution.

    The exhaust produces many air pollutants including un-burnt hydrocarbons, CO, NOx and lead oxides.

    • Dust pollution: Dust pollution originating from construction activities, raw road sides, from the neighbouring states, contributes to 56% of PM 10 and the PM2.5 load at 59 t/d, the top contributors being road 38 % of PM 2.5 concentration.

    Paddy stubble burning:  

    • About the issue:  Use of combine harvesters, has become a common practice after government law for delaying the sowing of paddy with an aim to conserve groundwater. It leaves farmers with very less time to get their fields ready. Moreover, paddy straw and stalks cannot be used to feed livestock, due to high silica content in them.
    • In this hurry, farmers see burning of this stubble as a viable option. During peak stubble burning incidents, its contribution rose to 40%. As of now it is just 4%-5%, indicating the contribution of variety of other factors.
    • The stubble burning season is around 45 days long. Air in Delhi, however, remains polluted till February.
    • Government policies increasing stubble burning: One of such acts is Punjab Preservation of Subsoil Water Act, 2009, which is aimed at arresting Punjab’s falling groundwater tables. it banned farmers from transplanting rice in fields before June, so that they would not pump groundwater and rely more on the monsoon rains for their water supply.
    • This allowed a window of barely 20 days for farmers to harvest paddy, clear fields and sow wheat for the next cycle.

    Is this just a Delhi problem?

    • Air pollution is not a problem of Delhi and its corporations alone but that of a big airshed around it that includes the National Capital Region (NCR). It includes Gurgaon, Faridabad, Ghaziabad, Noida, areas of Uttar Pradesh, Haryana and even Alwar in Rajasthan.
    • An airshed, in geography, is defined as a region in which the atmosphere shares common features with respect to dispersion of pollutants; in other words, a region sharing a common flow of air.

    Various initiatives to curb Delhi Air pollution

    1. SC appointed committee: one-man committee of Justice Madan B Lokur has been appointed to monitor stubble burning in Punjab, Haryana and Uttar Pradesh amid rising pollution in Delhi and its surrounding areas.

    2. Graded response action plan: In pursuant with Supreme Court’s order in the M. C. Mehta vs. Union of India (2016) regarding air quality in National Capital Region of Delhi, the Graded Response Action Plan was notified by MoEFCC in 2017. GRAP is a set of stratified actions that are taken once the pollution level reaches a certain specified limit. It works only as an emergency measure

    Government has opened the peripheral expressway around the capital to diverts non-Delhi destined traffic away.

    3. Construction & demolition (C&D) waste management rules: Govt. has notified construction & demolition waste management rules.

    As per the rules, all generators of C&D waste must segregate it into four categories– concrete, soil, steel and wood, plastics, bricks and mortar – and then either deposit it at collection centres setup by the local authority or hand it over to processing facilities.

    Over the years, the System of Air Quality and Weather Forecasting and Research (SAFAR) has developed a system to calculate the contribution of stubble burning to Delhi’s pollution.

    4. Tree policy: A new policy with an aim to preservation and transplantation of trees has been introduced by Delhi government.

    5. CPCB monitoring: Central Pollution Control Board (CPCB) has deployed 50 teams for inspection in Delhi-NCR region. Inspection teams will visit the construction site and will levy fines in case of any violation of anti-pollution guidelines.

    6. Red Light On, Gaadi Off campaign: A campaign ‘Red Light On, Gaadi Off’ has been launched by Delhi government to tackle air pollution. As per the government, switching off vehicle engines will not only stop pollution but also result in saving of ₹7,000 per vehicle every year.

    7. Anti-Smog guns: Anti-smog gun is a device designed to reduce air pollution by spraying water into the atmosphere so that all the dust and polluted particles get clear from the environment. The gun is attached to a water tank built on a movable vehicle which can be taken to various parts of the city.

    8. Smog Towers: They are large-scale air purifiers usually fitted with multiple layers of air filters which cleans the air of pollutants as it passes through them

    Way forward

    • Use of Happy Seeders: By Happy seeders, farmers can sow wheat seeds with the stubble’s organic value-adding to the soil, without the need to clear it or burn it.
    • ICMR tech: Indian Agricultural Research Institute (ICMR) has developed a solution that can be sprayed on crop residues and convert it into manure. This technique should be used on a wide scale all over the region.
    • Commercialisation of paddy straw: Government should find ways to commercialize paddy straw, as wheat straw is useful farmers have found ways to use it, unlike paddy.
    • More Smog towers: More smog tower and anti-smog guns should be installed to reduce the level of smog in the capital.
    • Implementation of legislations: Environment-related Legislations must be implemented and followed in Letter and spirit. Many laws have been framed to protect the environment and their implementation on the ground is very lethargic.

    Read moreAir pollution in India

  • 7 PM Editorial | Hyderabad Urban Floods : Reasons and Way forward | 17th October

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    Hyderabad Urban Floods: Reasons and way forward

    • What are urban Floods?
    • What are the reasons of Hyderabad Urban Floods?
    • Other common reasons for Urban flooding
    • Impacts of urban floods on vulnerable section
    • Steps taken to tackle Urban Flooding in India
    • Way forward

    Introduction

    The phenomenon of urban flooding in India is not new, every year at least one major city of India faces this disaster. Urban Floods in Chennai, Mumbai and Kerala in the last few years are few of those examples. At present, Hyderabad is suffering from this phenomenon.

    What are urban Floods?

    • Ideally, Flood is defined as an overflow of a large body of water over areas not usually inundated. This definition doesn’t fit well in the cases of Indian cities. flooding in urban areas is not only due to overflowing rivers, unplanned and underdeveloped mand-made structures also play a large role.
    • Hyderabad as the city has experienced floods earlier in 2000, 2008, 2016 and 2017 as well and led to at least 2 dozen casualties every time.
    • Musi river which was struggling to flow till last month is overflowing and breaching the banks.
    • Present Hyderabad flood has claimed more than 30 lives in Telangana since October. The reason behind casualties are wall collapses, electrocution and people getting washed away in overflowing nalas.
    • National Disaster Response Force (NDRF) and Army have been deployed for rescue work.

    What are the reasons of Hyderabad Urban Floods?

    Hyderabad topography
    Hyderabad is surrounded by water bodies.
    • A deep depression in the Bay of Bengal that moved towards Telangana. It led to the highest rainfall for October recorded in Telangana’s capital since 1903. the monthly average rainfall of Hyderabad for October (103.6 mm according to Skymet) was surpassed on a single day when 192 mm of rain fell.
      • Musi river, which was turned into a Nala, started to overflow due to heavy rain.
    • Hyderabad is in between the system of catchments: The western edge is in the Godavari River basin, To the east, it’s in the Krishna River basin and Hussain Sagar Lake in the middle of the city. Musi river(overflowing) is going through the city connecting waters of several lakes.
    • Moreover, due to the topography of Deccan Drainage pattern is chaotic i.e. it doesn’t flow in any single direction.
    • Encroachment of storm-water drains: Several buildings and houses have been built without taking into account the floodwater Nala there, effectively closing the space for the exit of water from the city.
    • Encroachment on water channels: This situation has occurred due to those hundreds of lakes which were connected by water channels in the past & those, which typically lie in the valley areas now encroach upon by the buildings.
    • Waste management– Every water body has a holding capacity. But, with all the industrial waste and sewage being dumping into the lakes, the waste accumulated and has now affected the holding capacity of the lakes.

    Other common reasons for Urban flooding

    Hydrological Factors: Overbank flow channel networks, the occurrence of high tides impeding the drainage in coastal cities.

    Improper waste management system: Clogging of storm-water drains because of silting, accumulation of non-biodegradable wastes and construction debris.

    Anthropogenic factors

    • With the rapid urban expansion, corruption and administration neglect has allowed construction on increasingly reclaimed wetlands, flood plains and low lands of the city as these areas have a cheaper land rate.
    • One such example is Chennai International Airport, which was built over the Adyar river. The airport is located on riverine floodplains leading to the 2015 flooding of Chennai.
    • Andhra Pradesh’s Amaravati had major projects proposed for building over the floodplains of Krishna river.
    • In the 2000s, Akshardham Temple Complex and Commonwealth Games Village (CWG) was built without taking Yamuna floodplains into consideration. The village was built right on the Yamuna’s floodplain.

    Impacts of urban floods on vulnerable section

    • The communities of people that are the most vulnerable to these disasters are those living in squatter settlements, slums, pavement dwellers, living in suburban and low-lying areas that remain waterlogged many days after flooding also. People end up living without services, shelter, potable water, food.
    • These floodwaters with untreated solid waste and faecal matter flow around these squatter settlements and become responsible for outbreaks of diseases such as malaria, dengue, diarrhoea etc.
    • Lack of discernment in development adds to this vulnerability of the poor. During the 2015 Chennai floods, some of the worst impacted areas were slum resettlement tenements constructed by the government on floodplains or lake catchment areas at Semmencheri, Perumbakkam and Ezhilnagar.

    Steps taken to tackle Urban Flooding in India

    IFLOWS-Mumbai: It is an Integrated Flood Warning system to enhance the resilience of Mumbai by providing early warning for flooding especially during high rainfall events and cyclones.

    The system also has provisions to capture the urban drainage within the city and predict the areas of flooding.

    CFLOWS-Chennai: CFLOWS is a complete web GIS-based decision support system that can be used both for mitigation planning operations before flooding and in real time to for aspects like relief work.

    It is an integrated system that involves coupling models of regional weather forecasts, storm surges and captures about 796 flood scenarios.

    Flood forecasting initiative: It aims to provide alerts to the public regarding flood situations in the region. It also offers current water level in the flood affected regions in the country and colour-coded maps indicating flooded areas.

    READ – NDMA guidelines on Urban Flooding

    Way forward

    • As the incidence of climate variability and extreme weather events increases, and urban flooding becomes more and more common, we must focus on the factors that can be controlled.
    • Water sensitive urban design and planning techniques — especially in the context of implementation — are of utmost importance.
    • These methods take into consideration the topography, types of surfaces (pervious or impervious), natural drainage and leave very less impact on the environment.
    • our proposed infrastructure (especially stormwater drainage) has to be built considering the new ‘normals’ (increasing rainfall or cyclones). Tools such as predictive precipitation modelling can help do that.
    • Most important is strong land use controls. EIAs and enforcement will remain vital to ensure that fragile wetlands and floodplains are not concretised.
    • Minimize the surface runoff- Limit, reduce or mitigate for impervious surface throughout the watershed by use of new engineering techniques like pervious pathways, parking lots should be considered and implements wherever possible to minimize the surface runoff.

    Read more:  

    Hyderabad urban flooding

    Flood management in India – an overview

  • 7 PM Editorial | All about TRP Issue | 16th October 2020

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    Here is our 7pm editorial Summary for today

     

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    • Introduction to the issue
    • What is TRP system?
    • Past example of TRP controversy
    • How the TRP system works and how it can be rigged?
    • Why the government should not regulate Media?
    • Way forward
    Introduction

    In the case, where three channels Republic TV, Fakht Marathi and Box Cinema, have been named in the case of Television Rating Points (TRP) manipulation, Days after Mumbai Police investigations, Broadcast Audience Research Council (BARC) has announced the suspension of audience estimates and ratings for news channels for the next three months.

    The order would cover all Hindi, regional and English news and business news channels with immediate effect.

    What is TRP system?
    • TRPs represent how many people, from which socio-economic categories, watched which channels for how much time during a particular period.
    • TRPs are the main currency for advertisers to decide which channel to advertise on by calculating the cost-per-rating-point (CPRP).
    Past example of TRP controversy
    1. In 2000s, there were two rating agencies Television Audience Measurement (TAM) and INTAM in India providing data for TRPs. There were major mismatch and disputes in the data provided by both agencies.
    2. TAM bought over the INTAM in 2001, leading to cartelisation in the TRP system, killing any possibility of scrutiny of the figures provided by TAM.
    3. As a result, despite having 35 out of the top 50 programmes in all TV homes, none of the Door darshan channels was present in the top 50 slots in the C&S (Cable & Satellite) homes category, as per the data of TAM.
    4. In another such controversy, a news channel with just 4 per cent prime time news was declared as number 1(“sab se Tez”) by TAM instead of DD National with 92 per cent share in prime-time news.
    5. Data was collected on the basis of 2,000 “BAR-O-meters” installed one each in a house, on the back cover of the TVs.
    6. The controversy was raised in the parliament in 2008. Ministry of Information and Broadcasting (MIB) asked the Telecom Regulatory Authority (TRAI) to frame policy guidelines for rating agencies.
    7. TRAI recommended for self-regulation through an industry-led body, the Broadcast Audience Research Council (BARC). Thus, BARC came into existence.
    8. In Jan. 2014, MIB notified Policy Guidelines for Television Rating Agencies and in 2015 BARC was accredited to television ratings in India. In 2016, TAM exited TV viewership measurement, not BARC is the sole TV rating service provider.
    How the TRP system works and how it can be rigged?
    • At present, BARC provides a rating based on the installed “BAR-O-meters” in over 45,000 empanelled households.
    • Based on the education level of the main wage earner and the ownership of consumer durables, households are classified into 12 categories.
    • Every person in the household has a separate ID, each member registers their presence by pressing their viewer ID button. It provides data on the channel watched by a person and watch the duration of it.
    • Now, if a broadcaster has the information of the houses where “BAR-O-meters” are installed, it would be easy for them to manipulate this data by bribing them or the cable operator of the multiple households for keeping their channel switched on.
    Why it matters?  
    • Financial fraud: Distribution of Ads worth Rs. 27000 crores received by News industry is decided based on TRP.
    • Spreading hate narrative: Programs spreading hate have been shown getting high TRP, affects public perception and promoted by channels, whereas a program spreading harmony and receiving low TRP will be demoted by channels. This system works against the national interest of any country.
    • Investment: Channels receiving high TRP, even though it is rigged, have a high probability of receiving investment.
    • Right to know: The manipulation does not involve just financial fraud, but a bigger crime of fraud on the people’s right to know the truth, which the media is morally and legally bound to provide, instead of fake news and manufactured hate narratives.
    Causes

    As per TRAI, one of the biggest challenges has been the absence of any specific law through which the agents/ suspects involved in panel tampering/infiltration could be penalised”

    45000 households representing a population of billion + country is not sufficient.

    Rating mindset: Rating system in India as a whole is not transparent. There is no clear information on the ratings provided to even books, music and movies.

    Ad revenues are driving the news channels. Ads are being offered to the news channels having viewership from the audience having high purchasing power. Which is why English news channels are getting ads more.

    No information about people meter, the methodology of calculations, sampling quality or demography of the selected sample size.

    People meters are installed in the houses of poor, who can easily be lured by gifts or a small amount of money.

    Why the government should not regulate Media?
    • Media, in its original form, plays a role of adversary to the government, highlighting the social, economical or geographical issues and present challenges to the government.
    • Government regulations mean surrendering freedom of expression and danger of political exploitation of media. TRAI is already doing the job of regulations, creating one more such agency would create confusion only.
    Way forward
    • Multiple agencies: Creation of multiple agencies mean multiple data. Any mismatch in data will invite scrutiny, thus, data comparison will keep a check on every agency.
    • Use of DTH services to analyse: Direct to Home (DTH) television services are being by huge population in India, DTH can be tweaked to provide information on which channel is being actually watched. Privacy issues due to that can be tackled through encryption.
    • Use of new methodologies: Changing technology must be utilised. For example, after New tariff Order (NTO) by TRAI, users have an option to select channels, this method can easily provide info on, which channel is getting subscribed most by the public.
    • Corporate led check: Recent Example of some corporates boycotting few media channels from their ads due to spread of hate is a great example that might be most effective in containing it.
    • Corporate led technology: Corporates providing ads to news channels are very much capable of finding a technological solution, so that their ad expenses provide them most return.

     

  • 7 PM Editorial | Quad and India: challenges and opportunities | 15th October 2020

    Topic –Bilateral, regional and global groupings and agreements involving India and/or affecting the Indian interests

    Quad and India

    In the wake of recent aggression by China in Ladakh and Taiwan, foreign ministers of the US, India, Japan and Australia Quadrilateral Security Dialogue was held in Tokyo. Countries reaffirmed their “collective vision” of maintaining a free, open and inclusive Indo-Pacific in this meeting.

    About Quadrilateral Security Dialogue (Quad)   

    Quad is an informal strategic forum among the like-minded democracies across the Indian and the Pacific Ocean aimed to ensure and support a “free, open and prosperous” Indo-Pacific region. It comprises of the USA, India, Japan and Australia.

    It is rooted in the formation of “core group”, in response to Tsunami in 2004.

    The idea was first mooted by Japanese Prime Minister Shinzo Abe in 2007. However, the idea couldn’t move ahead with Australia pulling out of it, apparently due to Chinese pressure.

    The Quadrilateral coalition was refurbished as ‘QUAD 2.0’ in 2017 on the lines of ASEAN Summit. Quad meetings are taking place on a biannual basis since then but the inclusion of Australia into ‘Malabar’ naval exercise is still being discussed.

    Challenges for India

    Non-alignment: India is abandoning its “sacred” tradition of non-alignment in favour of a military alliance with the US in order to counter the China threat.

    Trustworthiness of US: At present, political discourse in Washington is hostile to alliance-making. Thus, any military alliance offered by US may not translate into reality. There have been previous examples as well for that, like

    • US never (was close a few times) involved militarily with Pakistan after 1954 bilateral security agreement in its conflicts with India.
    • US military alliances with Japan and the Philippines has not provided any challenge to Chinese aggression in the region.

    No clarity on objectives: India wants advancing the security and economic interests of all countries having legitimate and vital interests in the Asia-Pacific region as stated in Quad ministerial meeting by External Affairs Minister whereas US secretary of the state Mike Pompeo is pitching for mutating the Indo-Pacific Quad into a more formal security grouping modelled on NATO.

    Individual visions of the Indo-Pacific: The Indo-pacific system, as muted by Quad is not clear. British empire never managed to combine the Indo and the Pacific into a unitary system It would be difficult to align the combined vision of the grouping with that of their individual visions regarding Indo-Pacific.

    Internal economic changes: If India wants to engage the Quad partners on reforming the China-centred economic globalisation, it also requires to engineer many changes on trade-related aspects, which might prove to be difficult, given India’s drive for self-reliance.

    Significance of Quad for India

    Defence-related spending: China’s spending on defence ($261 b) is more than the collective spending of India ($71.1 b), Japan ($ 47.6 b), Australia ($25.9 b). In this time of COVID pandemic and fund crunch associated with lockdowns, Entry of US will provide heavyweight to the alliance.

    Challenges on the continental sphere: China is neither keen on ending the ongoing border stalemate nor reinstating the status quo with India as of March 2020. The situation has been aggravated by geopolitical collusion between Islamabad and Beijing to contain and pressure India, creating a ‘nutcracker situation’ for India.

    Keeping in mind the relations of India with Taliban, US withdrawal from Afghanistan will hurt India’s interest in the region and deteriorating Iran-India relations will further dampen India’s ‘Mission Central Asia’.

    Looking at the challenges on the continental sphere, India must start giving importance to the maritime sphere which is far more important to China compared to opportunistic land grab attempts in the Himalayas. Joining Quad will strengthen India’s position in the maritime sphere Vis-à-vis China.

    Sustainable Development in the Indian Ocean Region: India, as a mistress of the Indian Ocean, holds the responsibility to act as the net security provider in the Indian Ocean region. India along with likeminded countries needs to counter China’s String of Pearls strategy and ‘debt-trap’ diplomacy.

    Act East policy: Joining Quad group will strengthen and supplement India’s Act East policy.

    Issue-based alliance or minilateralism: As per the statement of foreign secretory of India last year, India has moved beyond non-alignment towards an issue-based alliance with no formal agreements. Therefore, joining Quad will be in line with the present foreign policies of the government.

    Way forward

    • In the wake of recent aggression, India would require to be more aggressive diplomatically, therefore rather than involving in the Russia-India-China trilateral, India should look for reliable partnerships to deal with China. The Quad is not a panacea, but it’s shaping up as the backbone of India’s post-Covid foreign policy.
    • Quad should avoid becoming an Asian-NATO as being projected in the discussions. Such an alliance has the potential to start an arms race in the region. It should be more inclusive, taking into consideration the interest and concerns of littoral and ASEAN countries.
    • India should not compromise on its strategic autonomy unlike Australia and Japan, which are bound by alliance treaties to the U.S.
  • 7 PM Editorial | Nobel Prize to World Food Programme (WFP) and Food Security | 14th October 2020

    There won’t be a peaceful world as long as there is hunger

    Context: Recently World Food Programme (WFP) was awarded prestigious Nobel Peace Prize for its contribution in combating hunger, bettering conditions for peace in conflict-affected areas and also for its role as a driving force in efforts to prevent the use of hunger as a weapon of war and conflict.

    About World Food Programme (WFP)

    WFP was created in 1961 as an experiment to provide food aid through the UN system and in 1965, it was enshrined as a fully-fledged UN programme. It launched its 1st development program in Sudan.

    Since then, WFP has been forefront at the conflict-ridden countries like for humanitarian assistance to the hungry and needy people. Globally, WFP functions in more than 83 countries, reaching 86.7 million people.

    Aim: To eradicate hunger and malnutrition with the ultimate goal of eliminating the need for food aid itself.

    Headquarters: Rome, Italy

    It is a member of the United Nations Development Group and part of its Executive Committee.

    Funding: Its operations are funded entirely by voluntary donations from world governments, corporations and private donors. It raised US$8 billion in 2019

    WFP is governed by a 36-member Executive Board and partners with more than 1,000 national and international NGOs to provide food assistance and tackle the underlying causes of hunger.

    What is the link between food security and peace? 

    • It is important to understand, why an organization providing humanitarian assistance has been awarded a prize for ‘Outstanding contributions in peace’.
    • The Nobel committee has stressed the link between armed conflict and hunger and described it as “vicious circle”, where conflict can cause food insecurity and food insecurity may trigger violence.
    • Almost 80 per cent of all chronic malnourished children inhabit countries affected by armed conflict.
    • Increase food security by humanitarian assistance, not only prevents hunger but can also help to improve prospects for stability and peace.
    • Wars constrain people’s mobility, create black markets and restrict people’s access to food, making it either unavailable or too expensive. War-related displacement causes people to be removed from their cultivable land so that they cannot grow food, and it diverts resources from people’s welfare towards the war effort.
    • SDG (Sustainable development goal) – 2 targets zero hunger by 2030.

    Food Insecurity globally and in India

    • WFP data: As per the data of WFP, there are 821 million people in the world who do not get enough food to lead a normal, active life and world’s 1/4th undernourished people live in India.
    • As per the SOFI (State of Food Security and Nutrition) report, 2020, food insecurity in India increased by 3.8 percentage points between 2014 and 2019.
    Stunting and wasting

    • Stunting retards linear growth i.e. the condition of low height for age, it is caused by long-term insufficient nutrient intake and frequent infections for the long time.
    • Wasting or low weight to height is caused by acute significant food shortage or diseases.
    • Global Nutrition Report 2018: As per the global nutrition report 2018, with almost a third of the world’s burden for stunting, India tops the list of countries with stunting, followed by Nigeria and Pakistan. Almost 46.6 million children are stunted in India.
    • Global Hunger Index: In Global Hunger Index 2020, India ranks 94th out of the 107 countries.
    • Impact of COVID pandemic: This problem has been further enhanced by the ongoing coronavirus pandemic that has the potential to increase the number of hungry people by 270 million.

    Government measures to promote food security in India

    Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY): Scheme was launched as a part of Atmanirbhar Bharat in March amid COVID pandemic as a relief package to prevent hunger and poverty.  Under this scheme, eligible families are provided with 5 kg free wheat/rice per person/month along with 1 kg free whole chana to each family per month.

    Public Distribution System (TPDS):  A modified version of PDS launched in 2017 is TPDS. It aims at food security and poverty alleviation via provisions for essential commodities to the beneficiaries identified based on the inclusion and exclusion criterion.

    Antyodaya Anna Yojana (AAY) – Bottom most 2.5 crores BPL families get 35 kg of rice at Rs. 3/kg and wheat at Rs. 2/kg through the same Fair Price Shops.

    Senior citizens of 65 years of age and above if not covered under the National Old Age Pension Scheme are provided 10 kg of food grains at free of cost.

    National Food Security Act, 2013: The NFSA, 2013 gives a legal right to subsidized food grains to about 67% of the population and provides for penalty for non-compliance by public servants with special provisions related to children, pregnant women and lactating mothers.

    Integrated Child Development Scheme (ICDS): Scheme is aimed at improving the nutritional and health status of children between 0 to 6 years, pregnant women and lactating mothers.

    Mid-Day Meal Scheme: Scheme is aimed at improving the nutritional status of school-going children and simultaneously enhancing enrollment, retention and attendance

    National Nutrition Mission (POSHAN Abhiyaan): It is India’s flagship program launched in 2018 to improve nutritional standards among children and women by reducing the level of stunting, underweight, anaemia and low birth weight by 2022. It is based on the NITI Aayog’s recommendations under the National Nutrition strategy.

    WFP in India

    • Food distribution: WFP is operating in India in the field of Food distribution system to improve its efficiency, accountability and transparency.
    • Food fortification: WFP is pioneering the multi-micronutrient fortification of school meals under the Mid-Day meal program.
    • Vulnerability monitoring: WFP is supporting India’s poverty and human development monitoring through its own Vulnerability Analysis and Mapping software to identify India’s most food-insecure areas.

    Conclusion

    With 65% of our population below 35 years of age, India is on a stage where it requires to reap the benefit of increasing young population and become the workforce provider to the world. For that this young population required to be healthy and disease-free to reap the ongoing demographic dividend. World Food programme with its high-level experience in tackling food-related issues in most difficult situations can assist India in dealing with the issues related to stunting and wasting.

  • GST Compensation issue: analysis

    GST Compensation issue

    In News: Centre-state friction is growing over pending GST compensation payments issue under the Goods and Services Tax (GST).  The Finance Minister noted that the financial crisis facing the States is a result of an “act of God”.

    About GST

    The Goods and Services Tax in India is comprehensive, multi-stage, destination-based value-added indirect tax. It has replaced many central and state indirect taxes in India such as the excise duty, VAT, services tax, etc.

    GST compensation: As per the GST (Compensation to States) Act, 2017, states are guaranteed compensation for revenue loss on account of implementation of GST for a transition period of five years (2017-2022).

    • The compensation is calculated based on the difference between the current states’ GST revenue and the protected revenue after estimating an annualised 14% growth rate from the base year of 2015-16.
    • Any shortfall has to be compensated from the receipts of Compensation Cess imposed on selected commodities that attract a GST of 28 percent.
    • At present, the cess levied on sin and luxury goods such as tobacco and automobiles flow into the compensation fund.

    The solution presented by the government on GST Compensation issue

    Two options presented by Centre for borrowing by States to meet the shortfall:

    • Relaxing FRBM limit: States will be able to borrow the final instalment of 0.5% even without meeting the pre-conditions (fiscal responsibility and budget management (FRBM) act).
    • Borrow the entire projected shortfall: The second option is that the entire gap of ₹2.35 lakh crore can be met by the borrowing by the States by an RBI arrangement.

    Issues with the options:

    • Inadequate compensation: If states opt for the first option given by the Centre, they would get ₹2.62 trillion, including the compensation cess. That is only 87% of the shortfall.
    • Delayed payment may be a blessing in disguise for states: Under both the options, whatever is not borrowed by states will still be paid to them even after 2022, through an extension of the cess.

    Issues between Centre and States over GST compensation:

    • The constitutional mandate not followed: Centre needs to honour the constitutional promise and reimburse the shortfall in tax revenues.
    • Issues of compensation: As per the estimates, the States’ GST revenue gap in 2020-21 will amount to about ₹3 lakh crore, while cess collections are only projected to reach ₹65,000 crore, leaving a shortfall of ₹35 lakh crore.
    • Manufacture and sale of liquor is one of the major sources of state’s revenue: the centre has placed restrictions on bars/liquor sale for long time. Excise duty on alcohol accounts for around 10-15 percent of Own Tax Revenue of a majority of states.
    • Less taxation power with states: Using cess for agriculture such as Krishi Kalyan cess and Swachh Bharat cess, the Union is entering domains that are a part of the state list.
    • Against fiscal federalism: Unilateral decision by Centre without negotiation can jeopardise the future of GST, which was envisaged as a cooperative initiative.
    • Increase burden on taxpayers: The reliance on future compensation means that taxpayers will have to bear the cost.
    • State’s opposition: Finance Minister of Kerala said enforcing a cut in compensation and bringing in a distinction between GST and Covid-related revenue loss is unconstitutional. The Chief Minister of Maharashtra has said that it is time to exit the GST. Punjab, Chhattisgarh and Puducherry have voiced their displeasure.
    • Stress the finances of the states’: If compensation is not paid to states, economy of states will fail because GST accounts for almost 42% of states’ own tax revenues, and tax revenues account for around 60% of states’ total revenues.
    • Role of agencies in slowdown: During tight Monetary policy in 2017 and 2018 agencies showed higher growth than what actually obtained in 2016-17 and 2017-18. This affected structural reforms and the monetary policy of RBI.
    Does India need a Fiscal council?

    Fiscal Council: It is a proposed independent fiscal institution (IFI) promoting stable and sustainable public finance. It must be composed of non-elected professionals to ensure bipartisan support.

    Functions:

    • Unbiased reporting to parliament.
    • Promoting accountability and transparency
    • Costing of budget, policies and programmes. This discourages populist measures and raises awareness of people about their viability
    • Developing macroeconomic and budgetary projections
    • Raising public awareness on budgetary constraints.
    • Monitoring rules-based policies and this improves the quality of legislative checks on executives. Extra budgetary financing and such practices will be discouraged due to this.
    • Presenting alternative policy options.

    Need of fiscal Council:

    • Lack of transparency and accountability in existing budgeting: Fiscal deficit of 2019-20 as per CAG is 4.6% compared to revised estimate of 3.8%.
    • Unrealistic targets of tax revenue and capital receipts.
    • Extra budgetary financing not shown in deficit calculations. Example, Railways financing by borrowing from IRFC (Indian Railway Finance Corporation) and Irrigation financing by borrowing from LTIF (Long term Irrigation Fund) in NABARD
    • Tax Maladministration: A 2017 CAG report found that the tax department had resorted to ‘irregular’ and ‘unwarranted’ methods to meet their tax targets.
    • Coordination between GST Council and Finance Commission: currently there is no mechanism for such coordination.
    • To Limit the borrowings by the Central Government: Article 293 provides a constitutional check over the borrowings by the State government but there is no such restriction on the Central government.
    • To address these fiscal council is recommended by the 13th FC (Finance Commission), 14th FC and N.K. Singh panel of FRBM review. 14th FC suggested such a council should report to parliament and must be autonomous.
    • Moral obligation to compensate states from the Consolidated Fund of India: Centre is morally obligated to pay compensation to States as states gave away their right of taxation.

    Way forward:

    • Extend compensation period: Centre can prolong the compensation period beyond July 2022 and offer a greater share of the revenues (the SGST part) to the States.
    • Address trust deficit: The Centre needs to deliberate with the states and bridge the alarming trust deficit.
    • Reconsider FRBM limit: The centre should allow the states to exceed the FRBM limit by more than 0.5 per cent of the SGDP, as a temporary relief.
    • Facilitate borrowing by the states without affecting their debt to GDP ratios.
    • Fiscal decentralisation: Of the 12% GST, 10% should be equally shared between the States and the Centre, and 2% must be earmarked exclusively for the urban and rural local bodies, which ensures some basic revenue autonomy to them.
    • Single rate GST: There was an original recommendation of a standard rate of 12%, to be fixed for at least a five-year period. It reduces the need to do arbitrary classification and discretion, reduces litigation and will lead to buoyancy in collection. For example; Australia’s GST rate which has been constant at 10%.
    • Widen the tax base: GST should progressively include all goods (petroleum and alcohol) and services with very few exceptions, such as food and medicine.

    Conclusion: GST is a crucial and long-term structural reform which can address the fiscal needs of the future. Therefore, there is need to strike the right and desired balance to achieve co-operative federalism which will lead to enhanced economic growth.

  • 7 PM Editorial |Informal Sector- COVID-19 Induced Issues and Their Solutions| 15th September 2020

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    Informal Sector- COVID-19 Induced Issues and Their Solutions

    Overview – The effects of low growth on the informal sector and their solutions.

    Introduction:

    The contraction of the economy raises concern on the employment situation as the shrinking sectors are those that create the maximum new jobs. They include— construction (–50%), trade, hotels and other services (–47%), manufacturing (–39%), and mining (–23%).

    While the ‘Garib Kalyan Rojgar Abhiyaan’ launched in June could be an immediate relief, the ₹50,000-crore employment scheme cannot be a substitute for decent urban jobs. The shrinking economy will only lead to either people losing out on jobs or will lead to them failing to get one. Along with this, the sudden lockdown imposed has also led to further issues.

    What are the issues for India in the current horizon?
    1. There have been millions of people who have returned home due to lockdown. They will also return back in future, meaning there will be further shortage of employment.
    2. The urban low-end informal jobshave suffered the major brunt. They comprise the major share of vulnerable employment.
    Vulnerable Employment: It is characterised by inadequate earnings, low productivity and difficult conditions of work that undermine the basic rights of workers. They are more likely to be informally employed and lack effective representation by trade unions.

    Status of Vulnerable Employment in India: According to the International Labour Organization, of the 535 million labour force in India in 2019, some 398.6 million will have poor quality jobs. Despite higher economic growth in recent years, working poverty in India also remains high.

    Why does India have a huge share of vulnerable workers?
    1. India’s capital and labour are moving from low value-added activities in a sector to another sector, but not to higher value-added activities. This leads to a situation where a large proportion of the jobs being created is of poor quality.
    2. The service sector led growth has led to strong job creation in Information and Communication Technology (ICT)- intensive sectorsbut the informal and vulnerable employment continues in other sectors. These vulnerable sections comprise the majority of the employment.
    So, what are the challenges that need to be addressed specifically?
    1. There is a need to generate more jobs.
    2. The jobs generated along with the existing ones need to be provided with decent wages and some form of job security.
    What are the steps that need to be taken?

    The present crisis calls for a multi-pronged strategy to tackle the issue of urban jobs.

    1. The focus on urban employment generation programmesshould be in coordination with local governments as cities also face issues of overpopulation, slums etc. For this, more resources need to be allocated at the local government level. Resource mobilisation could be enabled by the formation of local alliances, involving elected representatives, trade unions, entrepreneurs and community groups’.
    2. Employment-intensive investment policies need to be designed. They should embrace both public and private sector initiatives. Private investments need to be facilitated by conducive contractual relations between labour and capital. Enterprise formation needs to be an integral part of the strategy. Small and micro enterprises need extra supportto balance the interests between labour and capital as neither have collective bargaining powers.
    3. Urban infrastructure needs to be prioritised as it accounts for a large share of total investments in the local economy. Construction of low-cost housing can be carried out using labour-intensive methods, which will yield substantial collateral benefits for urban dwellers
    4. An immediate launch of an urban employment schemeoriented toward building large-scale medical, health and sanitation infrastructure in cities and towns across India is needed.
    Conclusion:

    The capacity of our rural economy to absorb workers who returned from cities is low and the viability of agriculture to provide these workers with a decent living is questionable. It is not valid to assume that the Mahatma Gandhi Employment Guarantee Act (MGNREGA) or its substitutes can absorb a significant proportion of these workers. There will still be a large number of workers who need to be provided with alternative sources of employment, and generating decent urban jobs looks to be the only way out.

    Source: The Hindu

    Mains Question:
    1. The COVID-19 induced lockdown has led to huge problems for the urban economy, particularly the informal workers. Discuss how these workers can be re-accommodated into the urban economy.
  • 7 PM Editorial |Autonomous Bodies and Their Reforms| 12th September 2020

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    Autonomous Bodies and Their Reforms

    Overview – There is a need to reform the regulatory bodies to bring them in line with minimum government, maximum governance.

    Introduction:

    The Union textile ministry recently abolished the All India Handicrafts Board, Handloom Board and the Power Loom Board in consonance with the government’s vision of minimum government, maximum governance. The ministry also changed the status of the eight Textile Research Associations to “approved bodies”, instead of the earlier “affiliated bodies”. Thereafter, the government withdrew the officials of the ministry of textiles from the governing bodies of these textile associations. This is in line with the rationalisation of human resources in various ministries. A task force was also announced to this effect in the budget speech of 2016. It was also contemplated that a comprehensive review and rationalisation of autonomous bodies will be done.

    What are Autonomous bodies?

    Ministries and departments frame policies and ensure their implementation. They are supported by a number of organisations such as autonomous bodies, statutory bodies, subordinate and attached offices, and affiliated organisations, etc. Their mode of establishment and funding, and functional autonomy differs.

    Autonomous bodies (ABs) are a major stakeholder in the government’s functioning as they are engaged in diverse activities, ranging from formulating frameworks for policies, conducting research, and preserving the cultural heritage, etc.

    Mode of Funding:

    Most of the Autonomous Bodies receive money from the Central Government by way of grants-in-aid. The amount disbursed to autonomous bodies was Rs 799.55 billion in 2017-18, which, in 2019-20, was increased to Rs 943.84 billion.

    Constitution of Autonomous bodies:

    The apex administrative body of Autonomous bodies is called governing council or governing body and is chaired by the minister or the secretary of the respective ministry. Besides, the Autonomous bodies have specialised committees such as the purchase committee, works committee, finance committee, with nominated ministry officials. These Autonomous Bodies are generally audited by the Comptroller and Auditor General, and the annual report is presented in the Parliament every year.

    What are the issues with Autonomous Bodies?
    1. They are funded on taxpayers money and so there are calls for accountability. However accountability also compromises a bit on autonomy which is the reason they have been instituted.
    2. The exact count of Autonomous Bodies are not known, with estimates ranging from 400 to 650 plus. They also employ a considerable number of people impinging on the budget. For example, the Indian Council of Agricultural Research, an autonomous body under the Ministry of Agriculture, has almost 17,000 employees.
    3. PSUs and government have recruitment bodies like UPSC and SSC, Public Enterprise Selection Board etc for recruitment. There is no such body for CAB recruitments. As a result, the mode of recruitment and recruitment rules differs for each of these bodies, sometimes even across Autonomous Bodies within the same ministry.
    4. Finally, there is an accountability issue.The senior ministry officials do not attend the autonomous body meetings due to lack of time. They instead nominate junior officials who often lack the jurisdiction to take meaningful decisions during the meetings.
    So, what should be done to reform these bodies?
    1. A legal framework to describe an Autonomous Bodyshould be drawn up. It should define the boundaries of its working, its autonomy, and the various policies that it must follow.
    2. Autonomous Bodies that have outlived the cause for which they were established may need to be closed or mergedwith a similar organisation or their memorandum altered as per the new charter.
    3. A task force needs to be set up under a pan-Indian agency such as SSC or UPSC to streamline the recruitment rules, salary structure, allowance and perks paid to employees, and mode of recruitment.
    4. To ensure the participation of ministry officials, committee meetings of similar Autonomous Bodies should be held togetherso that the appropriate authorities could provide meaningful suggestions. Routine Work should not be part of the agenda.
    5. A performance auditby an independent agency needs to be done.
    Conclusion:

    There are Autonomous Bodies like The Centre for Cultural Resources and Training which works in the field of art education of teachers under the Ministry of Culture. This is not in line with governance good practices because integrating art education in school learning is under the Ministry of Education. These reflect the deeper malaise and the reforms that are required in the Autonomous Bodies.

    Source: Hindustan Times

    Mains Question:
    1. It is high time that the autonomous bodies are reformed to achieve the maxim of minimum government and maximum governance. In line with this, discuss the issues associated with autonomous bodies and suggest suitable reforms.

    NGT Action On Vishakapatnam Gas Leak

  • 7 PM Editorial |The foreign Policy Tenet After Non-Alignment| 9th September 2020

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    The foreign Policy Tenet After Non-Alignment

    Overview – The relevance of non-alignment as a foreign policy and future Indo-US relations.

     Introduction

    The Foreign Minister said recently that non-alignment was a concept for a specific era and a particular context. He however also said that independent decision making which stemmed from NAM, remained a factor in Indian foreign policy. This is as explicit as saying that NAM as a foreign policy concept is dead.

    Non-Alignment: It was a policy fashioned during the Cold War, to retain an autonomy of policy between two politico-military blocs- the Soviet and the American. It provided a platform for newly independent developing nations to join together to protect this autonomy. It broadly united around NAM’s flagship campaigns for de-colonisation, universal nuclear disarmament and against apartheid.
    Why does the NAM seem irrelevant now?
    1. The soviet bloc was disbanded at the end of the cold war. This meant that there is no middle ground between two poles.
    2. Decolonisationhas been almost complete by the time of the disbanding of Soviet.
    3. The apartheid regime in South Africawas also dismantled.
    4. The campaign for universal nuclear disarmamentis going nowhere.

    Freed from the shackles of the Cold War, the NAM countries were able to diversify their network of relationships across the erstwhile east-west divide. Non-alignment lost its relevance, and NAM its original raison d’être.

    What after non-alignment for India?

    A universally accepted successor to non-alignment policy has not been found. Successive formulations have been coined and rejected. This includes:

    1. Strategic autonomy: It soon acquired a connotation similar to non-alignment, with an anti-U.S. tint.
    2. Multi-alignment: It conveys the impression of opportunismwhereas India seeks strategic convergences.
    3. Issue based Partnerships: It is a description that has not stuck.

    Advancing prosperity and influence” was a description the foreign minister settled for, to describe the aspirations that our network of international partnerships seeks to further. However, the recent clashes with China has broken the strategic stand of India.

    What change does the recent China clashes call for in the foreign policy?

    To counter China, there have been calls for India’s foreign policy to shed its inhibitions and make a decisive shift towards the United States. However, the foreign minister rejected saying India will not rush towards an alliance.

    Why is alliance not an option?
    1. Alliance is as much a cold war concept as non-alignment. Ideological convergence and an existential military threatserved as factors for alliance.
    2. Disintegration of the Warsaw pact meant that the international options of alliance partners widened, just like those of NAM countries.
    3. The strategic interests of alliance partners are no longer congruent. The strains in NATO over the 2003 U.S. invasion of Iraq, for example, or on policy towards Russia or West Asia have periodically surfaced.

    Alliances in the Asia-Pacific face a bigger definitional dilemma. They were originally forged to deter the USSR. The threat to the alliance partners today is from an assertive China, which they are reluctant to define as a strategic adversary, because of their economic engagement with it and the huge military asymmetry.

    Where does India’s interests lie among these?
    1. India’s geostrategic imperativecalls for securing the economic and security interests in Indo-Pacific. Act East policy, engagement with East Asia and shared India-US interests in the maritime domain are manifestations of the imperative.
    2. Indian and U.S. perspectives are less convergent in India’s continental neighbourhood in the near term. Connectivity and cooperation with Afghanistan and Central Asia need engagement with Iran and Russia.
    3. Also strong India-Russia relations may deter strong Russia-China relations where China stands the adversarial neighbour.
    So where does the future of Indo-US relations lie?

    A group of U.S. strategic analysts had suggested that the U.S. should see ties with India as a joint venture (not an alliance), in which they could pursue shared objectives to mutual benefit and accept that differences of perspectives will have to be addressed. This could be the template for wider applicability in bilateral relations.

    Conclusion:

    The world order of today has been described as militarily unipolar, economically multipolar and politically confused. COVID-19 may scramble the economics and deepen the confusion further. India will acquire a larger global profile next year, when it commences a two-year term on the UN Security Council. The strategic choices that it makes in its bilateral partnerships will be closely watched.

    Source: The Hindu

    Mains Question:
    1. What is the relevance of non-alignment as a foreign policy for India? Discuss. Also how far do you think that India should shed its non-alignment and ally with the US?
  • 7 PM Editorial |The confusion on India’s stand on the LAC| 8th September 2020

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    The confusion on India’s stand on the LAC

    Overview – The response on the LAC intrusion question by India seems to stem from domestic political considerations.

    Introduction:

    Media reports have talked about the ongoing Chinese aggression at the Line of Actual Control, starting April this year. Yet, there is little clarity even today either in the country’s strategic community or the general public on the exact nature of developments on the China-India border. There are several questions to ponder.

    The questions arising:
    1. Did the Chinese soldiers cross the LACand capture Indian territory?
    2. Is the People’s Liberation Army (PLA) currently in possessionof Indian territory?
    3. What exactly are the two sides talking about in their discussions pertaining to ‘disengagement’?
    4. How does New Delhi plan to retake lost territory?
    Answers arising out of the government’s side:
    1. The Prime Minister claimed that no one had intrudedinto the Indian territory and captured military posts.
    2. The Minister of External Affairs claimed that the Chinese wanted to erect a structurein Galwan valley on Indian side of LAC.
    3. The Foreign Secretary wanted the status quoto be restored on the disputed border.

    These are contradictions in the government’s position and thus basic questions continue to remain unanswered. Even the government’s approach seems to be of soft measures which is manifested in the fact that the External Affairs Minister sees a solution in the diplomatic realm. This means that the government is trying to negotiate Chinese withdrawal using diplomatic means and not military means as done by the Chinese.

    What explains the government’s soft stand?

    Domestic politics seems to play a huge hand in the government’s inability to take factual and unambiguous positions on the LAC. The factors include:

    1. Acknowledging Chinese possession of Indian territory is bad opticsfor a party whose hardcore supporters revel in the military bravado of the party.
    2. Also, what has mattered in the domestic political scenario is “feel good optics” and “high pitched rhetoric” about strong national leadership and not actual and factual positions.

    More so, it’s rather bold policies in Kashmir and towards Pakistan over the years have created sufficient political cushion to absorb a few misadventures or pushbacks, even if they were to become public knowledge. Unclear position on the LAC seems to serve an important purpose.

    There are other reasons also because of which there is a deliberate attempt not to disclose the actual position which includes:

    1.The government also seems to have recognized the possibility of a “two and a half front” situation emerging which will be a formidable national security challenge. This can pave the way to China-Pakistan military and diplomatic coordination against Indian interests in the years ahead.

    Two and a half front war: It pertains to the Indian armed forces preparing to simultaneously fight conventional wars to the North and West, while also battling any insurgency that might be ongoing at that time in the hinterland. This in current context would mean- a restive Kashmir, an aggressive China and a Pakistan that never misses an opportunity to get at India.

    2.There is limited utility when it comes to Euro-American assistancein checking China in South Asia. In an international system that is preoccupied with the domestic political, economic and public health worries of COVID-19, there is little enthusiasm to resolutely stand by India in pushing back China. Also, an unpredictable US president adds to Indian woes.

    3.A simple counting of the number of soldiers and military equipment on both sides may lead to believe that India is not much militarily inferior to China. However, China’s growing capabilities in domains such as cyber and spacemay offset this calculation. Growing Chinese naval capabilities and its increasing reach in the wider region around India are also likely to dampen India’s enthusiasm about the West’s focus on the Indo-Pacific and the Quad as tools to check China in the maritime space.

    QUAD: Quadrilateral Security Dialogue, which is an informal strategic dialogue between the U.S., India, Japan, and Australia
    What makes things more complicated?
    1. India needs to check China’s maritime influence in the region. However the economic slowdown and COVID-19 impact will make defence expenditure take a backseat.
    2. The unclear standing as well as non-disclosure of facts by the ruling party has created elite dissonancewithin India’s strategic community on how to address and deal with the China threat. Also, it has created political divisions meaning it would be tough to put forward coordinated institutional responses to external challenges.
    Conclusion:

    In democracies, sometimes partisan interests trump national interests. A deeply divided political landscape accentuates such partisan considerations.  This could have lasting implications for the country on strategic challenges.

    Source: The Hindu

    Mains Question:
    1. How far do you think domestic politics plays a role in shaping the international responses of India. Comment in context of the Indo-China border conflict at Galwan.
  • 7 PM Editorial |Micro-irrigation: The way ahead for sustainable agriculture| 3rd September 2020

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    Micro-irrigation: The way ahead for sustainable agriculture

    Micro-irrigation can help save agriculture from the crisis of water scarcity.

    Introduction:

    India is facing a huge challenge of water scarcity. The current water crisis has affected nearly 600 million people. The increase of population to 1.6 billion by 2050 will further increase the water demand and thus compound the water scarcity issues.

    Factors which have aggravated this issue:

    There are different factors which have aggravated this issue of water scarcity. Some of them include:

    1. The Agriculture Sector: It accounts for approximately 90 percent of 761,000 billion litres of annual freshwater withdrawals in the country. Per capita consumption of water in the agriculture sector ranges from 4,913 to 5,800 kilolitre per capita per year.
    2. Climate Change: It has affected weather patterns, affected livelihood and well being of farmers.

    Agriculture has contributed the maximum to the water scarcity. However, it has also suffered the most due to water scarcity.

    Why has Agriculture been the biggest sufferer?
    1. Almost 85 percent of the farmers are small and marginal, which means they are dependent on rain and available surface water. Rain is increasingly becoming variable and the water table is gradually depleting resulting in higher irrigation costs.
    2. The high water use in Agriculture has resulted in soil salinity and health deterioration, reduced water table and crop productivity losses.

    The governments have been sincerely looking for options to ameliorate the issues faced by agriculture. The government launched a comprehensive programme called Pradhan Mantri Krishi Sinchai Yojana which emphasised on reducing water usage through micro-irrigation techniques.

    Pradhan Mantri Krishi Sinchai Yojana: Financial assistance of up to 55 per cent is available for small and marginal farmers and 45 per cent for other farmers for adoption of micro-irrigation systems. The funding pattern between the Union governments and the state government’s share is 90:10 for North-Eastern States and 60:40 for others.
    How can micro-irrigation solve the issue?
    1. Micro-irrigation decreases the water requirements:  By applying water directly to the root zone, the practice reduces loss of water through conveyance, run-off, deep percolation and evaporation.  It has paved the way for higher water use efficiency of around 75-95 percent.These losses are unavoidable in traditional irrigation practices.
    2. Micro-irrigation also saves on fertiliser requirements: Combined application of water and fertilizers through irrigation results in balanced nutrient application, reduced fertiliser requirement of around 7 to 42 per cent (thus, saving expenditure cost incurred by farmer), higher nutrient uptake and nutrient use efficiency.
    Fertigation: It is the method of applying water and fertilizers through irrigation.

    1. Micro-irrigation also helped in bringing degraded wastelands into agricultural practice: A Union Government survey indicated that farmers were able to bring 519.43 hectares of degraded land under cultivation through the technique.

    2. Micro-irrigation also allows the use of saline water for irrigation without causing salinity or osmotic stress to plants.

    Best Practices: Israel, a desert nation with water scarcity has become a water surplus nation by using drip irrigation that saves almost three-fourths of the water used for irrigation done through open canals.

    3. Micro-irrigation makes significant electricity savings: FICCI reports a consumption reduction of 30.5 percent electricity.

    4. Micro-irrigation also helps maintain optimum soil moisture: It helps increase overall productivity and profitability. There has been an average productivity increase of fruit crops by 42.3 percent and vegetables by 52.8 percent.

    5. Finally, micro-irrigation has also helped in adaptation of diverse cropping patterns.

    Conclusion:

    Micro-irrigation is immensely beneficial to help achieve sustainability in Indian agriculture. However, we are far away from adopting it. It requires extensive demonstration, training and awareness to adopt it on a large scale in India.

    Source: Down to Earth

    Mains Question:

    In view of increasing water demand across cities and rural hinterland, how far do you think micro-irrigation techniques can help mitigate the issue of water scarcity? Discuss.

  • 7 PM Editorial |Incentivisation is better than higher legal marriage age for girls|31st August 2020

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    Incentivisation is better than higher legal marriage age for girls

    Introduction:

    The Prime Minister in his independence day speech has proposed raising the marriage age of girls from 18 to 21. The objective of this action is to improve the social, physical and nutritional well being of girls.

    Benefits of higher marriage Age For girls
    • Delayed marriage and parenthood leads to better physical, emotional and cognitive development of women from adolescence to adulthood
      • Better education beyond schooling. This improves cognitive and emotional development as well as agency.
      • Prevents pregnancy related undernutrition: Pregnancy and delivery at early age increases the nutrition requirement of already undernourished and anaemic girls. This leads to undernutrition of not only mothers but also babies. Hence delayed marriages will lead to reduced anemia, stunting, wasting.
      • Reduces IMR and MMR due to better health
    • Gender parity is achieved: Both boys and girls having 21 years of age ensures that patriarchal notion of age of boy should be more than girl is done away in law.
    Insufficient alone:

    Underlying socio-economic causes of early marriage and undernutrition will not be addressed only by increasing marriage age for girls

    • Deficiencies in schooling and higher education opportunities
    • Poverty and related issues of nutrition, reduced schooling of girls and early marriages
    • Limited economic opportunities

    Also, delayed marriage without addressing these issues of undernutrition will not yield desired results.

    In addition, higher legal age of marriage for girls can produce adverse outcomes like use of it by parents to punish love marriages of inter caste and inter faith in nature. Further, poor households will suffer.

    Hence ‘punitive paternalism’ approach of only raising marriage of girls will be less effective than ‘autonomy enhancing paternalism’.

    Autonomy enhancing paternalism approach:

    In this approach, empowerment is incentivized to enhance autonomy of girls. Steps to do so are:

    • Incentivizing education upto and beyond class 12. This leads to delayed marriages. Further, it will lead to improved autonomy in sexual health, improved cognitive and mental development.
      • Incentives like free bicycles, free laptops to girls to continue education
    • Improving nutrition services to women of all strata to address undernutrition and anemia. ICDS must be provided with more finances.

    Institutions to do so are already in place such as ICDS. These must be pursued in a mission mode similar to Swachh Bharat.

    Such incentive models will produce better results as seen in institutional delivery under Janani Suraksha Yojana.

    Conclusion:

    18 is the legal age of marriage in many countries and there is no need to increase it further in India. Focus must be on incentivising education and nutrition services delivery to girls. This will lead to achieving desired outcomes in girl child health(nutrition and sexual), education and economic independence.

    Source: Indian Express

    Mains question:
    1. Critically discuss whether increased legal age of marriage will lead to better empowerment of women? [15 marks, 250 words]
  • 7 PM Editorial |Technology- based waste management framework for Swachh India|29th August 2020

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    Technology-based waste management framework for Swachh India

    Introduction:

    Unplanned and inadequate waste management in India has led to mountains of garbage in landfills. In addition, this waste contaminates groundwater and water bodies(drains, rivers and oceans)

    Current status of waste management in India:
    • Only 20-25% treatment and rest being dumped in landfills, drains, water bodies(lakes, rivers and oceans). This makes our rivers one of the most polluted in the world.
      • Deonar dumpsite in Mumbai, Ghaziabad landfill are examples of mounting waste piles
      • NITI Aayog report says 70% of Indian rivers are severely polluted
    • 48 landfills covering 5000 acres of prime land worth about 1 lakh crore. They are inadequate leading to dumping in drains, water bodies.
    • 92 waste to energy(WTE) plants but only few are functional at low capacity. They are grossly inadequate
      • In Mumbai, 600 MT(metric ton) WTE plant is present as against waste generation of 7500 MT per day.

    By 2050, waste generation is projected to be doubled. This shows that there is an urgent need for a waste management mission at the national level.

    Solutions for effective waste management in India:
    • Indigenization to technologies: Technologies adapted to Indian conditions must be made affordable to municipalities. Indian waste has a high amount of organic waste, pan masala, plastic sachets(shampoo, lays packets etc). These must be incorporated into providing solutions suited for India
      • Amphibian equipment to clean water bodies modified for smaller drains and water bodies
      • Robotic long hand scavenging machines for drains
      • Booms to prevent waste entry into water bodies and drains
    • Ease of procurement of technologies by municipalities by amending rigid rules. Currently, procurement is time-consuming and leads to cost overruns.
    • Policy incentives: Landfills cleanup results in unlocking commercial value of land underneath. Incentives in the form of land ownership, long rent-free leases must be provided.
      • This leads to socio-economic benefits of less pollution of air, water and land as well as reduced diseases in the areas of landfills
    • Skill training for the adoption of full mechanization in collection, transport, operation and maintenance of waste treatment plants.
    • Behavioural change campaigns: To inculcate zero waste attitudes among people. Traditionally India had followed 3R’s – Reduce, Reuse and Recycle. This must be focused on.
    Conclusion:

    A comprehensive framework with the design of collection, treatment and technology must be adopted for effective waste management in India. This must be part of local-level planning of municipalities and panchayats. Only then can India achieve swachh bharat, swasth bharat and Unnat bharat.

    Source: Hindustan Times

    Mains question:
    1. Increasing solid waste is a grave threat to biodiversity and leads to poverty. Discuss? How can India tackle the increasing menace of solid waste? [15 marks, 250 words]
  • 7 PM Editorial |Pendency In Indian Judiciary – Reasons and Solutions|28th August 2020

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    pendency of cases in India Judiciary – Reasons and Solutions

    Introduction:

    pendency of cases in India  judicial system is a huge challenge. About 3 crore cases are pending before all levels of judiciary – Supreme court, High courts and subordinate courts. This leads to a situation of “Justice Delayed is Justice Denied”.

    Further it has social, political and economic costs associated with it:

    • Loss of trust of people in Rule of law
    • High litigation costs, delayed contract enforcement reduces FDI in India.
    • Assets being locked in litigation reduces productivity
    • Direct and indirect loss of rights of people
      • Undertrials lose their right to life directly due to long pendency
      • Other litigants lose their rights like right to property, right to constitutional remedies

    Hence it is vital to ensure this pendency of cases is addressed

    Reasons for pendency of cases in India :

    Major causes include:

    • Unfilled vacancies of both judicial and non judicial officers. This increases the burden on existing staff and reduces their productivity.
      • 40000 vacancies of non judicial support staff in subordinate judiciary
      • Upto 40% vacancies in High court judges. Similar situation in subordinate judiciary
    • Inadequate physical infrastructure: Supreme court report on Subordinate courts highlights dilapidated buildings with less space and insufficient courtrooms. Low budgets for infrastructure development is a concern.
      • 5000 courtrooms are needed to accommodate about 20000 judicial officers which is not present currently.
    • Inadequate technological infrastructure: Old technologies used in administration increases time of litigation. Process to adopt new digital technologies is slow.
    • Time taken for case disposal is high: Reasons are
      • Repeated adjournments despite court guidelines provide not more than 3 times
      • Frivolous litigation
      • Time wasted due to inefficiencies in investigation, hearings and delivery of judgments. Ex: Reserving delivery of judgments for months despite completion of hearings
    • Exponential increase in new cases(due to better awareness of rights) and inability to deal with the rise
      • Police are under equipped in terms of new methods and technologies of investigation and evidence gathering
      • ADR(Alternative DIspute Resolution) is not effective

    These have to be addressed for timely justice delivery.

    Solutions:

    Comprehensive solution needs steps by all judiciary, legislature and executive as well as adoption of technology.

    • Judicial measures:
      • Increasing working days in higher judiciary
      • Professional court managersto be appointed to increase efficiency of functioning. 13th Finance commission suggested this to reduce pendency
      • Ad-hoc and retired judgesto be appointed under Articles 127 and 128 to supreme court to deal with pendency and vacancies
      • Additional judges, acting judges and retired judgesin High courts under Articles 224 and 224 A to deal with high pendency and vacancies
      • Reducing disposal times of pending cases
        • Time specification for different categories of trials and cases
        • Annual target and action plan for subordinate and high courts in terms of number of cases disposed
        • Strict regulation of adjournments by limiting to 3
        • Code of conduct for officers to improve performance
      • Legislative measures:
        • AIJS(All India Judicial Service)to improve quality of judges
        • Non judicial bodies to reduce burden on judicial bodies of non judicial aspects of trial
      • Executive measures:
        • Creation of physical infrastructure – Court buildings, rooms etc. Budget allocation must be increased for the same
        • New framework for appointments of judicial officers. Number of judges must be fixed optimally at court level as suggested by 120th law commission report
      • Technological interventions: Use of IT(Information technology) helps in reducing time wastage , reliable data collection, better tracking and monitoring. Some interventions include:
        • Redesigning core operationsof case filing, sending notices, documents submission, hearings, details of court, status of case etc
          • Increased use of mobile applications to reduce the early stage of cases where most time is spent in notices
          • Virtual/ e-courtsas seen in Delhi improves litigant experience and reduce costs
        • Pace of e-Courts Mission mode projectmust be increased in adoption
      • Improving efficiency of litigation:
        • Promoting ADR:
          • Pre litigation mediation
          • Regular conduct of Lok adalats
          • Gram Nyayalayas in villages
        • Legal care and support centrespromoted by higher judiciary in villages to make litigations more effective
        • Fast track courts and special courtsfor important categories of cases like political criminality.
    Conclusion:

    India being a democracy with rule of law cannot continue with high pendency of cases in India as seen in current times. A mission mode effort by all the organs of state is needed to make the judicial system free of long pending cases.

    Source: Live Law

    Mains question:
    1. Discuss the reasons for high judicial case pendency and possible steps to address them?[15 marks, 250 words]
  • 7 PM Editorial |State Specific Industrialization Plans to Boost Manufacturing|26th August 2020

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    State Specific Industrialization Plans to Boost Manufacturing

    Introduction:

    COVID 19 pandemic has exposed vulnerability of global value chains to overdependence on China. Hence there is an increasing push towards diversification of supply chains from nations.

    3 factors which are pushing this diversification are:

    • Geopolitical tension between China and USA
    • Apprehension of dependence on China for essential goods like medicines
    • Reducing over-reliance on China for supply chains

    Multiple countries like Japan, Australia, USA are pursuing this. Countries like India, Vietnam are possible beneficiaries of this relocation. India’s Atmanirbhar Bharat Abhiyan is aimed at attracting such companies.

    Challenges to manufacturing in India:

    India’s manufacturing has underperformed as seen in following trends:

    • Share in GDP at 15% in 2018 as against the target of 25% by 2022. China has 30% of GDP as manufacturing share
    • Average annual growth rate of 7% against target of 12% since liberalization in 1991. Chinese manufacturing grew on average at nearly 11% annually after 1978.
    • India is 6th in manufacturing output whereas China is 1st in the world.
    • India is not in the top 10 manufacturing exporters who contribute 83% manufacturing exports. China meanwhile contributes 18% and is second to the EU.

    Constraints faced are:

    • Deficient infrastructure – Roads, railways, airports, electricity, water etc
    • Unpredictable tax policies
    • Non conducive regulatory environment – Rigid labour laws, licensing delays
    • High cost of industrial credit
    • Poor skills of workforce
    • Land acquisition delays
    • Delayed and costly contract enforcement
    • Low R&D investment
    • Restrictive trade policies

    These have prevented large scale FDI(Foreign Direct Investment) into India

    State specific industrial policies as a solution:

    Addressing constraints need active participation of states in areas like land acquisition, licensing, regulation etc. Hence state specific industrial policies in coordination with the centre will be a lasting solution.

    Manufacturing is currently concentrated in Tamil Nadu, Karnataka and Uttar Pradesh. Land being an important factor may be the reason for concentration of manufacturing in these large states. Yet other large states with low manufacturing activity are Andhra Pradesh, Bihar, Chhattisgarh, Madhya Pradesh, Odisha, Rajasthan, Telangana, and West Bengal. Reasons for low manufacturing activity in these states have to be addressed and state specific plans have to be developed. In these plans, states and centre have to coordinate for effective policies.

    Strategy group proposed for electronics manufacturing is a good approach. In this representatives from centre, all states and industry will be present to share ideas and best practices. This can be expanded to all manufacturing sectors.

    Conclusion:

    Self reliant India needs manufacturing growth for jobs and growth. Cooperative federalism framework through state specific plans can be the solution for the same.

    Source:The Hindu

    Mains question:
    1. Manufacturing share of GVA in India has stagnated. Discuss constraints for manufacturing in India? What steps are needed to promote manufacturing in India? [15 marks, 250 words]
  • 7 PM Editorial |India Must Invest In Urban Infrastructure For Sustainable Development|19th August 2020

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    India Must Invest In Urban Infrastructure For Sustainable Development

    Introduction:

    COVID 19 pandemic has exposed vulnerabilities in urban infrastructure and governance. 2/3rd of total cases are from cities of Mumbai, Delhi and Chennai.

    Cities are the drivers of Indian economy generating 63% of GDP and have 31% of population(2011 census). Hence they need to be built back better to create more resilience to future pandemics, climate change, disasters and ecosystem destruction.

    Understanding urban infrastructure issues:
    • Inadequate public health infrastructure: COVID 19 exposed the shortage of beds, hospitals, personnel and equipment in urban areas. Private healthcare has failed to rise to challenge and cannot cater to poorer sections.
    • Inadequate WASH(water supply, sanitation and hygiene) availability:
      • Piped water supply is restricted and time consuming in slums and informal housing colonies
      • This makes basic sanitation and hygiene of hand washing impossible in these areas. Hence pandemics cannot be controlled easily.
      • Swachh Bharat Mission is a positive step in eradicating open defecation. But much more is needed to improve sanitation and hygiene
    • Inefficient food security: Migrant exodus due to pandemic exposed shortcomings in accessibility to the public distribution system(PDS).  Further,15% of the world’s malnourished are in India. This shows accessibility is still an issue.
    • Air pollutiondue to vehicles, thermal power plants. This aggravates COVID 19 pandemic. Hence it has to be addressed to reduce the pandemic severity.
    • Energy efficiency and zoning laws are not implemented.
    • Inefficient public transport and traffic management leading to accidents and lost time in transit.
    Building resilient cities:
    • Investment in public health care infrastructure to increases beds, personnel and equipment
    • Drinking water and sanitation services to vulnerable populations like slums. FICCI water mission, Jal Jeevan mission are positive. Social and Behavioral campaigns to be used bring attitudinal changes like no spitting in public areas, using toilets and washing hands
    • PDS must be made more efficient and better targeted. Poor must have accessibility and affordability to nutritious food.
    • Targeted investments in modern building, streets, sewage and water systems and toilets.
      • Green building materials to be used to reduce emissions due to the cement industry. Companies must be incentivized to promote innovation in these.
      • Building and street design to reduce need for refrigeration and power use
      • Enforcing energy efficiency norms in buildings
    • Sustaining momentum in Renewable energy generation. Last 3 years saw more renewable energy investment than fossil fuel based. This has to be maintained
    • Investment in public, non motorized  transport like bicycles. This generates more employment than investments in roads and motorways. It will also reduce accident related deaths.
    • Digital infrastructure must be enhanced to enable new ways to work(work from home, gig economy etc). It reduces transit and hence pollution. It also saves costs for all(employees and employers)
    Conclusion:

    COVID 19 pandemic has provided an opportunity to reset urban governance mechanisms and infrastructure. This must be utilized to increase investments in building resilient, inclusive, sustainable and low carbon cities.

    Source: Indian Express

    Mains question:
    1. Investments in urban infrastructure is the need of the day. Discuss how resilient urban infrastructure can be developed? [15 marks, 250 words]
  • 7 PM Editorial |LG of NCT, Delhi Should Uphold Constitutional Provisions|18th August 2020

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    LG of NCT, Delhi Should Uphold Constitutional Provisions

    Introduction:

    Appointment of public prosecutors in the Delhi riots case by LG(Lieutenant Governor), has brought division of powers between state executive and LG into focus. LG had referred the decision of appointment of public prosecutors to the president and in the meantime appointed prosecutors who are different from the state government’s intended appointees.

    Critics point out LG’s action is against the 2018 supreme court judgment which made the elected council of ministers responsible for executive decisions and LG being only a nominal head.

    Supreme court’s 2018 judgment:

    It was addressing jurisdictional conflicts between the government of NCT and LG who is appointed by the president on advice of the union government. It clarified the provisions of Article 239 AA which provides for elected legislature and council of ministers for NCT, Delhi.

     

    Article 239AA:

    ● NCT Delhi with a Lieutenant governor acting as administrator

    ● Elected legislative assembly and council of ministers for NCT, Delhi

    ● Legislative assembly can legislate on all state and concurrent list subjects except public order, police and land. But parliament is the final legislative authority and can override laws of assembly of NCT, Delhi

    ● Any difference of opinion between governor and council of ministers has to be reserved for president who decides the matter and in the meantime LG can issue such orders as he may deem necessary in case if urgent action required

    Major points of judgment:
    • LG is bound by aid and advice of council of ministersexcept in subjects of land, public order and police
    • LG’s concurrence is not needed for executive decisionsand LG has no powers to overrule decisions of government
    • Difference of opinion has to be referred to the presidentunder Article 239AA(4) provisio. Governor cannot make decisions.
      • Governor cannot act in a mechanical manner and refer every decision to the president. Only genuine cases of public interest and not for every trivial matter.
      • Principles of collaborative federalism, concept of constitutional governance, objectivity, etc. must be considered before making reference to president
    • Executive power vests with the council of ministers of NCT, Delhiand the union government has no overruling powers. Only role for the union government is through reference to the president by the governor. But the governor cannot refer executive decisions merely on differences of opinion. Only constitutionally important issues can be referred to the president.

    Judgment had advised the LG that he/she must act as facilitator rather than having hostile attitude to the council of ministers of NCT, Delhi.

    Yet the judgment has not clarified explicitly on which topics can LG refer to the president. Only broad values like collaborative federalism, concept of constitutional governance, objectivity are provided. Hence if LG refers routine administrative matters to the president and in the meantime exercises power to pass orders, then it goes against the spirit of 2018 judgment.

    Appointment of public prosecutors and violation of 2018 judgment:

    Appointment of public prosecutors is an executive power of the UT(Union territory) council of ministers. Hence the referral by LG to the president is seen as violative of the 2018 judgment which laid down principles of collaborative federalism and concept of constitutional governance.

    Conclusion:

    LG must heed to advice of the supreme court in being a facilitator rather than hindrance to collaborative federalism. LG must uphold the law of the land and constitutional provisions.

    Source: The Hindu

    Mains question:
    1. Article 239AA has created more friction than collaboration between state and union executives. Discuss? [15 marks, 250 words]
  • 7 PM Editorial |Bridging Gap Of Industry Linkages In Skill Training|15th August 2020

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    Bridging Gap Of Industry Linkages In Skill Training

    Introduction:

    ITIs(Industrial Training Institutes), Vocational training institutes, sector skill councils(SSCs) and private training centres are institutions for skill training in India with the objective of “skill, reskill and upskill”. These institutions have stopped functioning due to COVID pandemic induced restrictions. This deprives skill training for about 1 crore people and impacts their employment prospects.

    In such a context, NSDC(National Skill Development Corporation) has partnered with TCS for e-skilling online. But, the structural constraint of lack of industry linkage to skill training is not addressed by this.

    bridging gap in skill training – industry linkages:
    • Disconnect of the curriculum with needs of industry. This results in a need for retraining after joining a job and hence we see low placement of only 8.5%. As COVID 19 changes industry operations, this gap between skills required and curriculum will widen.
    • Lack of practical training. Complete classroom training without internships or apprenticeships leads to incomplete skilling. COVID 19 will further exacerbate this due to movement restrictions
    • Sector Skill Councils(SSCs)led by industry have largely been ineffective and need restructuring.

    As firms minimize hiring due to COVID related uncertainties, placements after skill training will be further impacted due to skill deficit.

    bridging gapthe industry linkages gaps:

    Pandemic induced crisis can be turned into an opportunity to strengthen the skilling infrastructure in India.

    Steps to bridge gaps in skill training are:

    • Strengthening apprenticeship program: Apprentices get skilling on the job for a period of 1-3 years. Government supports this through the National Apprenticeship Promotion Scheme and pays 25% of stipend. This has to be strengthened by awareness campaigns like apprenticeship pakhwada. Also apprentices hiring should be made more hassle free. This will ensure practical training based skilling.
    • Dual system of training(DST):  All training programs must have both classroom and industry training components. This DST has to be promoted by increasing industry partnerships, participation of industry in curriculum design and assessments.
      • Haryana has implemented it successfully which has led to 30% pre placement offers from industry
    • Skill – job matching databases: Making data of skilled workers accessible to industry with safeguards of consent and data security. Currently such databases are in silos and need to be integrated.
      • Recent ASEEM(Atmanirbhar skilled employee employer mapping) portalfor skill-job matching is a step in the right direction.
    Conclusion:

    ILO estimates India will have a skill deficit of 29 million by 2030. COVID pandemic will further exacerbate this deficiency. Only by responsive policies and bold reforms in skill India mission, can India hope to harness the vast demographic dividend.

    Source:https://www.financialexpress.com

    Mains question:
    1.  Skill training in India needs more industry linkages. Discuss? [15 marks, 250 words]
  • 7 PM Editorial |Demand and Growth Revival by Enhancing Minimum Wages|8th August 2020

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    Demand and Growth Revival by Enhancing Minimum Wages

    Introduction

    Private consumption demand which is one of the levers of economic growth has been slowing down even before COVID pandemic in India. After the pandemic induced lockdowns and restrictions, it has fallen drastically as jobs and incomes have been lost. Economic revival needs revival of domestic demand as external demand(exports) will stay muted in the foreseeable future.

    India’s growth story of the 21st century was based on consumption demand. This demand came from top of the socio-economic pyramid i.e. well off and middle class. But this has reached its limit. For further growth, demand must be generated at bottom of the income pyramid i.e. informal workers. They have high propensity to consume which makes them a good source of demand, provided they have adequate income.

    Incomes in India for informal workers:

    PLFS(Periodic Labour Force survey), 2018-19 data points out:

    • 10% of employment is formal(job security, social security like pensions, provident fund, insurance). They have decent minimum wage(about Rs.26000 per month) for adequate consumption
    • Organized informal employment constitutes 14% of total workforce. Their average incomes are Rs.9500 per month. This is equal to or below minimum wage.
    • Self employed constitute 50% of total workforce with average income of Rs.8400 per month
    • Casual wage workers constitute 24% of workforce with daily income of Rs.209

    This shows India’s employment challenge includes inadequate incomes. For self employed and casual workers, incomes are well below decent wages which are needed for consumption of goods. These wages only ensure a subsistence level of income and cannot create demand. These incomes have to be increased to ensure that consumption demand comes from the bottom of the income pyramid.

    Increasing incomes can be done by 2 ways:

    • Increasing productivity growth in informal economy
    • Raising minimum wages
    Raising Minimum wages to improve incomes:

    Code on wages act, 2019 guides minimum wage in India. Based on occupation and skills, minimum wages are set. But there is a Floor wage(Rs.178 per day as per draft rules) based on minimum living standards, which is the threshold wage in any sector(organized and unorganized) and employment(formal and informal). Any minimum wage for any sector cannot be lower than floor wage. Yet considering enforcement difficulties in the informal sector, realization of the same is challenging.

    Better interventions will be:

    • Focus on casual wage workers: 2 sectors where 80% of casual wage workers are present are agriculture and construction. Ensuring decent living wages in these sectors will increase incomes of casual labour and hence consumption demand. It will also increase floor wages of other informal workers due to market forces.
    • Public employment programmes like MGNREGAwhich employ unskilled workers must ensure minimum wages are paid. Further, they must be extended to the whole year and to urban areas. This will ensure other sectors will pay at least minimum wages in fear of labour migrating to MGNREGA.
    • Criteria of setting minimum wage to be decent living standard: Current criteria in setting minimum wages is based on subsistence living and just out of poverty. It must be changed to ensure adequate income which inturn will increase consumption demand.
      • Anup Sathpathy committee recommended Rs.375 as living wage.
      • Minimum wage can be linked to regular informal worker incomes. This will ensure yearly upgradation of minimum wage as per PLFS data.
    Conclusion:

    By raising minimum wages of casual labour and public unskilled employment, consumption demand can be increased from the bottom of the income pyramid. This will not only reduce inequalities in India, but also ensure sustainable economic growth revival. This can be a complementary strategy to cash transfers to ensure minimum income guarantee to vulnerable households.

    Source: https://indianexpress.com

    Mains question:
    1.  Bad quality of jobs with low wages is a greater challenge for India than unemployment. Discuss? What step must be taken to ensure minimum wages in the economy? [15 marks, 250 words]
  • 7 PM Editorial |Reviving WTO to Secure Global Trade in COVID Times|4th August 2020

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    Reviving WTO to Secure Global Trade in COVID Times

    Introduction:

    Relevance of WTO(World Trade Organization) in global trade rules is coming under challenge in recent years. In a world where COVID pandemic has disrupted global supply chains and trade, it is pivotal to revive WTO to ensure security and predictability of trade.

    WTO – Structure and functions:

    WTO was established by marrakesh agreement in 1995 after the conclusion of Uruguay round of negotiations.

    Structure:

    Main functions:

    • Forum for negotiations of trade rules and agreements
    • Administering and monitoring existing trade agreements like Agreement on Agriculture, Trade Facilitation Agreement.
    • Dispute resolution in trade through a Dispute settlement Body(DSB) and appellate body

    Importance of WTO lies in the fact that it is based on principle of equality and non discrimination

    • Every country has an equal voting right
    • MFN(Most Favoured Nation) mechanism ensures rights of all members are protected in trade.
    • Dispute Settlement Body(DSB) enforces trade rules and provides redress to all nations irrespective of their economic size

    Hence WTO is very crucial for rules based global trading regime.

    Troubling times for WTO:

    WTO is facing troubling times recently due to following issues:

    • Difficulty in consensus building: With 164 nations, negotiations have become difficult to reach consensus
    • Divergence in priorities:
      • Developing and least developed nations have priorities of the DOHA development agenda. Promoting development and correcting injustices of Uruguay round are focus for these countries
      • Developed nations are proposing new agenda on issues of e-commerce, investment facilitation, services trade, gender norms.
    • Dysfunctional DSB: USA has blocked appointment of judges on DSB. This has effectively prevented the functioning of DSB.
    • Increasing regional agreements and WTO plus provisionson intellectual property, labour laws etc. Trans Pacific partnership between pacific countries is an example.
    • Trade warsand sidelining of WTO
    • US reluctance in engaging with WTO by citing multiple issues like developing country classification criteria.

    These have to be addressed to bring back the relevance of WTO.

    Steps to revive WTO process:
    • New DG(Director General) must be appointed expeditiously. DG promotes consensus building of nations which is needed in current fragmented scenario
    • Engaging with USA to bring it back into the WTO fold. Genuine concerns must be addressed which will build confidence in the process
    • DSB must be revived. Without the dispute redressal mechanism the whole idea of the WTO will be defeated. Hence this must be a priority. USA must be convinced of the same.
    • Limiting the agenda of the next ministerial conference to produce outcomes. This can improve confidence in the body. Only fisheries subsidies can be taken up in June 2021 ministerial.
    • China and its trade practices must be addressed. Role of state owned enterprises, forced technology transfer and non market economies must be discussed and clarified.
    • Discussions must move ahead on the agenda of WTO negotiations. While developed countries issues may be considered to be included, this must not dilute existing DOHA development agenda. Agriculture issues(Public stock holding procurement, special safeguarding mechanism), Special and differential treatment rules must be finalized.
    • WTO must deliberate on whether plurilateral agreements(only some countries negotiate and agree) should be part of WTO. If they are part of WTO, induction of other countries into the agreement at a later date and applicability of agreement on MFN basis to countries which are not part of agreement, must be decided.
    Conclusion:

    Global trade is facing uncertain times due to pandemic, protectionism and trade wars. WTO is pivotal in ensuring security and predictability in such uncertain times. Hence it is important to rejuvenate the global body to promote economic growth of the world.

    Source: https://www.hindustantimes.com

    Mains Question:
    1. WTO has become dysfunctional and irrelevant in recent times. What challenges is it facing? Suggest steps to revive WTO? [15  marks, 250 words]
  • 7 PM Editorial |National Education Policy, 2020 – Provisions and Significance|31st July 2020

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    National Education Policy, 2020 – Provisions and Significance

    Introduction:

    The Union cabinet has approved the NEP(National Education Policy), 2020 recently. It is based on recommendations of Kasturirangan and T.S.R.Subramanian committees. NEP, 2020 lays emphasis on reforms in education at all levels from pre primary to higher education. It aims to bring transformation in the education system of India in line with contemporary needs.

    NEP, national education policy 2020 will replace existing education policy which was formulated in 1986. Considering vast changes in technology, demography and aspirations of people, this reform is the need of the day. It also aims to address current challenges Indian education system faces like lack of resources, capacity, mismatch between education and skills needed for jobs.

    Major provisions of NEP, national education policy 2020:

    School education:

    • Universalization of education by 2030through 100% GER(Gross Enrollment Ratio) from pre primary to secondary.
    • Open schooling system(no admission requirements, NIOS is example) for out of school children.
    • 5+3+3+4 curriculum systemreplacing existing 10+2 system.
      • 3-8 years of age: 3 years pre school education + Classes 1 and 2
      • 8-11 years of age: classes 3 to 5
      • 11-14 years of age: classes 6 to 8
      • 14-18 years of age: Classes 9-12
    • Focus on foundational Literacy and Numeracy; extracurriculars; vocational education and multidisciplinary approach to arts, science and commerce in high school
      • Vocational education to start from class 6 with internships
      • Curriculum will include 21st century skills like coding.
    • Teaching in mother tongueupto class 5 with no imposition of any language.
    • 360 degree holistic progress cardfor tracking learning outcomes.
    • Teacher education:
      • 4 year B.Ed qualification to be mandatory from 2030 for teachers
      • National Curriculum Framework for Teacher Education, NCFTE 2021 to be formulated

    Higher education:

    • GER to be raised to 50% by 2035.
    • Broad based, multi-disciplinary, holistic UG(Undergraduate)  education: Provisionsof flexible curriculum; integration of vocational education; multiple entry and exit points with respective degrees; UG education period between 3-4 years
    • Academic bank of creditsto enable transfers of credits between institutions
    • Multidisciplinary Education and Research Universities (MERUs)for global quality multidisciplinary education
    • National Research Foundation(NRF)as an apex body for research capacity building.
    • HECI(Higher education commission of India)as umbrella regulator except for legal and medical education. It will have four verticals of:
      • National Higher Education Regulatory Council (NHERC) for regulation
      • General Education Council (GEC) for standard setting
      • Higher Education Grants Council (HEGC) for funding
      • National Accreditation Council( NAC) for accreditation
    • Phasing out affiliation system in 15 years
    • Graded autonomy to collegeswill be provided as per a stage wise mechanism.

    Other:

    • Increasing public expenditure on education(centre and states) to 6% of GDP at the earliest
    • National Educational Technology Forum (NETF)to promote use of tech in education – learning, assessment, planning and administration
    • Gender Inclusion Fundfor advancing gender equality in education.
    • Special education zonesfor disadvantaged regions and groups. Financial incentives will be given to SC,ST, OBC and other disadvantaged groups.
    • Promotion of multilingualism in schools and colleges.
    • National institutes for pali, Prakrit and Persian to be set up along with institutes for translation and interpretation, for knowledge creation in Indic systems and languages.
    Significance of the policy:
    • Recognition of the importance of preschool educationin the future of a child through 5+3+3+4 structure.
    • Recognizing the importance of mother tongueupto class 5, which has an impact on learning outcomes for the child. In the context of increasing demand for English as a medium of instruction, this brings balance by not neglecting the mother tongue. This promotes multilingualism which is proven to have a positive impact on brain development.
    • Emphasis on vocational educationsince class 6 is needed. With only 30% GER in higher education, the rest of the students need employable skills. Vocational education aids this. Hurdle of blue collaraization of vocations in India must be overcome for this to succeed.
    • Reforming teacher educationis timely as multiple reports on education point to lack of quality in teacher education.
    • Multidisciplinary and research approachesto education through MERU’s and NRF are crucial for the 21st century. Areas like nano technology, bio technology, robotics, artificial intelligence all need this approach.
    • Emphasis on technology can increase access to quality education.
    • Recognizing the need for flexibility of education. This is important in the 21st century with high mobility and alternate ways of learning. Steps like Open schooling system, multiple entry and exit points in UG education, use of technological resources aid in this flexibility.
    • Regulatory reformsby emphasis on transparency, quality, self assessment and voluntary declarations. This reduces the regulatory burden on education. A single regulatory body with 4 verticals will aid in this lean but effective regulation.
    • No child left behindthrough focus on gender equality and disadvantaged groups. Gender Inclusion Fund  and Special education zones aid in this.
    • Focus on long neglected Indian languages and knowledge systems(tribals etc) will advance cultural and scientific knowledge.
    Conclusion:

    Transformational vision proposed in NEP, national education policy2020 requires huge resources in creation of infrastructure, personnel, institutions. NEP,2020 has set a target of 6% of GDP as target at the earliest. This is a challenge in the current fiscal position of states and centre due to COVID pandemic. But political will must be shown to realize the education transformation in NEP, 2020

    Source: https://www.thehindu.com

    Mains question:
    1. NEP,national education policy 2020 aims at transforming Indian education. What are its major provisions? Discuss its significance? [15 marks, 250 words]
  • 7 PM Editorial |FPO’s Can Revitalize Indian Agriculture Using New Agri Reforms|30th July 2020

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    FPO’s Can Revitalize Indian Agriculture Using New Agri Reforms

    Introduction Farmer producer organizations:

    Agricultural reforms have been a major focus area for economic revival in India post COVID pandemic induced slowdown. In particular, agricultural supply chain and marketing are the focus areas of these reforms.

    Major steps taken in this regard are:

    • New features on e-NAMfor farm produce sales without visiting mandis
      • Warehouse based trading module using e-NWR(Negotiable Warehouse Receipts)
      • FPO(farmer producer organizations) trading module to enable them sell produce at their collection centres rather than going to APMC’s
    • Direct buying facility for bulk buyersoutside APMC’s
    • Farm ordinances:
      • Farmers Produce Trade and Commerce Ordinance: Enables freedom of marketing to farmers where they can sell their produce anywhere permitting interstate and intrastate trade.
      • Farmers Agreement on Price Assurance and Farm Services Ordinance: To enable contract farming. This ensures predictable sale and incomes from produce.
    • Scheme for setting up 10000 FPO’s by 2023-24with motto of “One district, One product”(ODOP)
    FPO as an enabler:

    FPO’s are registered cooperative institutions with farmers as shareholders. They have immense potential in Indian agricultural supply chain and marketing. Following trends in Indian agriculture shows need of FPO’s

    • Nearly 86% of Indian farms are small and marginal with average landholding of 0.58 hectares
    • Small and marginal farmers face challenges of:
      • Access to inputs: Technology, finances, quality seed, fertilizers, pesticides
      • Marketing and supply chainas they have a small amount of produce. Transportation, grading, sorting etc will be more costly per unit of produce

    In such a scenario, FPO can provide economies of scale by aggregating input purchases and farm produce collection supply chain. FPO can then become part of an integrated value chain that links small and marginal farmers to markets.

    Recognizing this, there are about 7000 FPO’s being promoted by various agencies like NABARD. Government has announced a new scheme to set up 10000 FPO’s by 2023-24.

    Operational guidelines under 10000 FPOs scheme are:

    • Minimum of 300 farmer members and 50 percent of them should be small, marginal and landless tenant farmers with maximum possible representation from women farmers. In hilly areas and north eastern states, 100 members is the minimum limit.
    • Financial grants for formation, equity and administrative expenses. Financial support till 2027-28.
    • Credit Guarantee Funds(CGF) to be setup by NABARD and NCDC(National Cooperative Development Corporation)
    • Agri-Market Infrastructure Fund can be used for assisting FPO’s in creating marketing and farm level value addition infrastructure.
    • 10% limit on maximum shareholding by a single member to prevent capture of profits by rich farmers.

    These guidelines can aid in formation of sustainable FPO’s.

    Other steps which can enable creation of sustainable FPO’s:
    • Linking FPO’s to CBBO’s(cluster based business organizations) and KVKs(Krishi Vikas Kendras). CBBOs can promote administrative expertise whereas KVK can provide technical assistance to FPO.
    • FPO members from contiguous areas: This enables better cohesiveness and regular meetings which are important for success of FPO
    • Federating FPO’s: Creating umbrella institutions at district or mandal level ensures that scalability is achieved. Further it promotes backward and forward linkages as well as ODOP vision.
    • Standardization of farm produce by FPOs: Uniform size, color, taste, quality is needed for better price realization in markets and exports. FPO’s must evolve such standards for vegetables, fruits, cereals for better marketability.
    • End to end supply chain managementby FPO for identified crops in their area.
    • FPO’s must be output centricfor identified crops in their area..
    • Shareholding must be equitableto prevent cornering of profits by a few.
    • Aggregation of inputs and farm produce: This is yet to be done by many existing FPO’s. Support must be provided to enable aggregation and use of FPO trading module on e-NAM for price discovery.
    • North eastern region(NER) must be developed as a single market to enable growth. Current production in NER is primarily for local demand. Hence FPOs there must focus on crops which are in demand in the region.
    Conclusion:

    FPOs have the potential to transform subsistence farming of small and marginal farmers into commercial farming. Implementation of FPO scheme must be effective to realize this objective. In addition, other reforms related to land and tenancy must be enacted to promote commercial agriculture.

    Source: https://www.financialexpress.com

    Mains Question:
    1. FPO’s are vital for Indian agri produce supply chain. Comment? What steps must be taken to enable FPO’s in India? [15 marks, 250 words]
  • 7 PM Editorial |EU – India partnership to achieve common strategic goals| 16th July 2020

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    EU – India Partnership to Achieve Common Strategic Goals

    Introduction:

    15th European Union(EU)-India summit is being held virtually to strengthen the relationship between the traditional partners. This is being held in midst of COVID 19 pandemic and at a time of increasing antagonism of both the EU and India towards China.

    For tackling China and achieving strategic goals, EU and India can be crucial partners for each other.

    EU’s Chinese dilemma:

    EU was a strong partner to Chinese economically since the early 2000’s. It championed the entry of China into WTO(World Trade Organization). EU investments in China are significant with its industrial development linked to supply chains in China.

    Yet Chinese expansionist moves since 2013 have raised apprehension.

    • 16+1 mechanism of China with central and eastern european countries is threatening the unity of European Union.
    • Chinese acquisition of strategic ports(Piraeus in Greece) and technologies have raised red flags.
    • Joint military exercises in baltic sea with Russia; misinformation campaigns of China and naval forays in South China sea and Indian ocean are raising security concerns

    This was reflected in the recent EU-China summit which didn’t have a joint statement. EU is looking for ways to reduce its economic dependence on China and also protect its strategic interests.

    In this context, EU views India as a strategic partner in realising a multipolar Asia to maintain balance of power in the region. This was reflected in EU Strategy document on India, 2018 and EU-India Agenda for Action, 2020.

    Converging interests of India and EU:

    Along with tackling China, interests converge in a range of areas including economy, infrastructure, technology, security and global multilateralism. Major areas of cooperation are:

    • Economic cooperation:
      • EU is 2nd largest destination of India’s exports as well as source of investments. Hence it is economically beneficial for early conclusion of an FTA(Free Trade agreement) and Investment treaty can benefit India economically. In the context of European supply chains mulling moving away from China, India must move fast to attract them.
      • EU too will benefit economically from closer ties as it awaits a future without Britain. India’s large market presents the EU an economic opportunity. Hence it needs to address India’s concerns on movement of people and opening up of european markets for India’s goods and services.
    • Technology: In 5G, IT, artificial intelligence(AI), space etc, India – EU are natural partners. With concerns on Chinese equipment and technologies being a common security concern, both can collaborate to develop technologies.
    • Infrastructure: India needs investments in infrastructure development domestically to the tune of 102 lakh crore(National Infrastructure pipeline). EU can be a credible investor which brings in technology, expertise.
    • Countering BRI(Belt and Road Initiative): Chinese strategy is increasing influence through debt trap diplomacy and BRI. This is being used in South Asia as well as Europe. Hence this is a common concern for both EU and India. To counter the same there is a need for collaboration to present alternatives. A common partnership of India, EU, Japan, USA can provide such alternatives. It serves India’s ‘Neighbourhood First’ policy.
    • Multilateral cooperation:
      • Increasing Chinese influence in multilateral organizations is evident due to COVID 19 pandemic. EU – India cooperation is vital to check such institutional capture.
      • Ensuring relevance of institutions like WTO, WHO in the context of USA’s exit needs collaboration of EU and India.
      • Further, India’s strategic goals in counter-terrorism, UNSC(Security council) reforms need EU support.
    • Security cooperation:
      • Indo-pacific collaborationto ensure freedom of navigation and overflight. This needs cooperation in maritime domain awareness, information sharing in Indian ocean. Further joint naval exercises need to be increased along with japan, Australia and USA to counter Chinese naval forays into Indian Ocean
      • Terrorism and radicalizationis a common concern for both nations.
      • Combating misinformation campaigns as seen from China during COVID 19 regarding origin and response to virus
      • Cyber securityand telecommunications security are potential areas of collaboration.
    Conclusion:

    As EU and India become more assertive against China to protect economic, technological and strategic interests, India-EU collaboration can become pivotal. A comprehensive vision of close collaboration is needed to strengthen the partnership.

    Source: https://www.hindustantimes.com

    Mains question:
    1. India – EU collaboration serves the interests of both especially in the context of Chinese assertiveness. Discuss? [15 marks, 250 words]
  • 7 PM Editorial |Population Explosion and India’s Concerns| 15th July 2020

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    Population Explosion and India’s Concerns

    Introduction:

    11th July is world population day since 1987 when the global population reached 5 billion. It was designated to bring attention to population explosion and its issues. Issues like health problems faced by childbearing women,importance of family planning, gender equality, poverty, maternal health and human rights are highlighted.

    Current global population is 7.8 billion and is expected to rise to 9 billion by 2050. Hence it is important to raise awareness of the effects of overpopulation on development, environment and planet.

    Theme of world population day, 2020:

    Theme is to raise awareness about safeguarding sexual and reproductive health needs and vulnerabilities of women and girls during the Covid-19 pandemic.

    During the pandemic, if the lockdown continues for 6 months, with continued major disruption to health services, then 47 million women in low and middle-income countries might not have access to modern contraceptives. This leads to unintended pregnancies. This can lead to rise in gender-based violence, female genital mutilation and child marriages, going ahead.

    Further, even in normal times, 800 women die everyday during childbirth. With the pandemic disrupting normal healthcare services, Maternal Mortality Rate(MMR) is expected to rise. We can see this already in some hospitals denying deliveries without COVID 19 test report.

    Hence the theme of this year assumes significance due to enhanced vulnerabilities to women.

    India’s concerns in checking overpopulation:

    India has 2% of global land mass with 16% of global population. Trends seen in Indian population are:

    • Decadal population growth rate between 2001 and 2011 was 18%(about 18 crore more people).
    • India’s population in 2019 was estimated to be 1.37 billion.
    • It is expected to surpass China in the next 7 years and cross 1.6 billion by 2050.

    In such a context, there are major concerns in checking overpopulation. These are:

    1. Higher birth rate than death rate:
      1. Till the mid 20th century, birth and death rates were equal in India, resulting in a stable population.
      2. Since the mid 20th century, India has experienced population explosion. This was due to reduction in death rateswith gradual improvement in the access to healthcare facilities, level of education, availability of proper nutrition and diet etc. It resulted in a triangular population pyramid and expanding population.
      3. In 2020, India has registered a birth rate at18.2 per 1000 population and death rate at 7.3 per 1000 population.
    2. Poverty and illiteracy:
      1. Children are seen as assets by poor families to earn more. Hence population growth is more concentrated in economically weaker sections of society and poorer regions of the country.
      2. Female literacy has a direct impact on fertility rates with educated mothers having lower. Female illiteracy in India is about 39% in 2011. This results in lack of knowledge about contraceptives, consequences of frequent childbirth and reproductive rights.
    3. Family planning and social factors: Societal attitudes are contributing to population explosion
      1. Use of condoms declined by 52% over eight years and vasectomies fell to 73%(National Family Health survey, 2015-16). This shows failure of family planning programmes.
      2. More children are preferred in order to take care of parents in old age
      3. Patriarchal attitudes
        • Women lack agency in decision of family planning like when to plan for a child and gap between pregnancies
        • Male child preferenceleading to childbirth till a male child is born. Economic survey 2017-18 has pointed out 21 million unwanted girls due to this.

    4.Total Fertility rate(TFR): It is the average number of children born to women during reproductive age. TFR of 2.1 is called the replacement rate as it results in a stable population. Trends in India are:

      1. In 2016, TFR was 2.3. It was decline in the last decade
      2. Poorer states like Bihar (3.2), Uttar Pradesh (3.1), Jharkhand (2.7) and Rajasthan (2.7) still have TFRs above 2.5
      3. Poorest household has a TFR of 3.2 children per woman compared to 1.5 children per woman from the affluent families

    Hence we see concentration of population growth in economically weaker sections.

    1. High youth unemployment and demographic disaster: 28% of Indian population is youth(15-29 years old) which is the highest in the world. Due to this there is a potential of demographic dividend where high youth employment results in higher growth. Yet India is facing a challenge of unemployment:
        1. Only 7 million of 25 million new workforce get secure jobs annually
        2. 18% of youth is unemployed
        3. 33% of youth is not in employment, education and training.

    This is resulting in a demographic dividend turning into a demographic disaster.

    Way forward:

    Overpopulation acts as hurdle in addressing poverty, malnutrition, hunger, gender equality,  and in providing heallth and education. Hence it need to be addressed to attain Sustainable Development goals(SDG’s)

    Family planning must be made more effective. National Family Planning Program has failed in checking population growth. Hence it need to be made effective by multistakeholder approach by involving governments(national, state, local), civil society, businesses and citizens. Use of contraception and vasectomies; awareness on sexual and reproductive rights of women must be promoted.

    Human capital need to be developed. Economic planning must focus on adequate education and training of large youth population. Skill training must focus on outcomes of employment post training rather than number of trainees.

    Only by addressing challenges of overpopulation in India can we achieve the vision of ‘Atmanirbhar Bharat’ and ‘New India’.

    Source: https://timesofindia.indiatimes.com

    Mains Question:
    1. Overpopulation puts burden on limited economic resources. Discuss challenges faced by India in controlling population growth? What effect does COVID 19 have on population control?[15 marks, 250 words]
  • 7 PM Editorial |Combating Criminalization of Politics| 14th July 2020

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    Combating Criminalization of Politics

    What happened:

    The Supreme court in its recent judgment has declared that criminalization of politics must be combated at the political party level. In pursuance of the same, it has provided 6 mandatory directions to political parties to end criminalization of politics.

    These orders are vital in the context of rising criminalization in Indian political system.

    Increasing criminalization: Causes and effects:

    Number of legislators in parliament having criminal cases pending against them has risen since 2004.

    • 24% in 2004
    • 30% in 2009
    • 34% in 2014
    • 43% in 2019

    Effects of such criminalization is felt in all walks of life:

    • Loss of public trust in democratic process and politics
    • Bad governance which is reflected in public services like public education, public health.
    • Bureaucracy, business, civil society, media need governance free of criminalization for fulfilling their roles
    • Political corruption
      • Use of money power in horse trading of MLA’s, MP’s
      • Scams like 2g scam, coal scam
      • Cash for query scam
      • Crony capitalism
    • Nexus of politicians – criminals – bureaucrats. Vikas dubey case in Uttar pradesh has revealed such an unholy nexus

    Root cause of this malice lies with flawed rationale of political parties in deciding candidates.

    • Winnability in elections based on money and muscle power is determinant for fielding candidates.
    • Capability in administration is seen as sole criteria without considering intent for public service. This is flawed as British were also capable but they were exploitative.
    • Power is seen as an end rather than means for public service. Hence political parties compromising values to win with any means including fielding criminal candidates

    In such a context, 6 orders of the supreme court to political parties becomes important

    6 orders of supreme court in February 2020:
    • Political parties must upload on their respective websites and print as well as electronic media, detailed information regarding individuals with pending criminal cases, who have been selected as candidates.
    • They also have to mention reasons for such selection over people with clean background
    • The reasons as to selection of candidates shall be with reference to the qualifications, achievements and merit of the candidate concerned, and not mere “winnability” at the polls
    • These details shall be published within 48 hours of the selection of the candidate or not less than two weeks before the first date for filing of nominations.
    • The political party concerned shall then submit a report of compliance with these directions with the Election Commission within 72 hours of the selection of the said candidate.
    • Non-compliance of these directions shall be brought to notice of SC by Election Commission on the grounds of Contempt of Court

    These 6 orders are in addition to directives provided by supreme court in its earlier judgments:

    • Introduction of additional affidavitin 2002 with details of finances and criminal cases
    • Each candidate must inform political parties of criminal cases against him or her. Pirates shall put these details in public(newspapers, social media)
    • Lily Thomas judgment of 2014had struck down section 8(4) of representation of people’s act, 1951. This has resulted in immediate disqualification of a sitting legislator in case of conviction in criminal cases.
    Going ahead:

    Rising trend in criminalization shows that earlier judgments of the supreme court were not effective. Lack of enforcement of court judgments is the reason for this. Even in the recent judgment, there is no clarity on what punishments will be there for non compliance. Only by strict enforcement can a deterrent be created.

    Greater vigilance during the upcoming elections is needed for strict enforcement:.

    • Election commission(EC) must monitor compliance with 6 directives and additional affidavit
    • EC must ensure that information is disseminated promptly on all media
    • Prosecuting for non compliance will ensure deterrence
    • Citizens must be made aware that politicians who bribe for votes cannot be trusted in governance

    In addition, legislative changes must be done to prohibit people with serious criminal charges to contest in elections.

    Only by these sustained efforts can the political system be rid of the menace of criminalization.

    Source: https://www.thehindu.com

    Mains Question:
    1. Criminalization has only increased in India in the last 2 decades. What role does political parties play in this trend? Discuss the role of the judiciary in addressing this menace? [15 marks, 250 words]
  • 7 PM Editorial |Integrating South Asia Through Trade| 13th July 2020

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    Integrating South Asia Through Trade

    Context:

    China is using its  economic strength to increase its influence in South Asia. China-Pakistan Economic Corridor(CPEC); investments in Sri lanka, Bangladesh and Nepal are pursued actively. Such investments are leading to debt traps as is seen in case of Sri Lanka, Maldives.

    In such a scenario, India must rejuvenate its own neighbourhood policy to counter expansionist moves of China in south asia. Trade is one important tool to do so.

    Unfulfilled potential of intra regional south asian trade:

    World bank’s report on south asian trade points out that restrictions in a south asian country are 2 to 9 times more for trade from south asian countries compared to other countries. While SAFTA(South Asian FTA) is in force, it has a lot of tariff lines excluded from the agreement on the basis of a ‘sensitive list’. This has resulted in only $23 billion goods trade in 2015 against a potential of $67 billion.

    Further, average trading cost between country pairs in South Asia is 20 percent higher than among country pairs in ASEAN. It is cheaper for India to trade with Brazil than with Pakistan.

    It is a result of lack of trading infrastructure, complex non tariff barriers and red tape.

    Hence there is a need for renewed focus on intra regional trade.

    Proactive approach for facilitating trade:

    India being the largest economy and country must assume asymmetric responsibility in promoting intra regional economic integration. India can expand imports of other south asian countries without expecting immediate reciprocity. Such early harvest can generate trust and good will.

    In 2012, India provided unilateral duty-free access to its market for the least developed countries from South Asia(Afghanistan, Bangladesh, Bhutan, Maldives and Nepal). Further steps that can be taken to facilitate imports from neighbourhood are:

    1. Encouraging Indian private sector to invest morein the neighbourhood. This leads to building of regional value chains which will increase regional trade. Further Indian companies can tap markets in south asia. IT services, tourism, spices, garments, leather products, agriculture products are some areas which can be explored.
    2. Investing in hard and soft infrastructurethat enables trade and investment. Hard infrastructure includes Integrated check posts, port infrastructure, waterways, logistics. Soft infrastructure include digitalization, data exchange mechanisms, single window clearances and risk management. This seamless integration at borders will enable reduced costs and promote investments.
    3. Enabling adherence to non tariff measures(NTMs) of India. India must conduct systematic workshops to create awareness on NTMs. This builds capacities of exporters and also provides feedback to Indian authorities on NTMs.
    4. Capacity building for standards and testing. This ensures conformation to Indian standards. Bureau of Indian Standards (BIS) has been providing technical support to the Bangladesh Standards and Testing Institution to help in standardisation and conformity assessment. Such programs must be made intensive and systematic.
    Conclusion:

    Size and capacity asymmetry make its neighbours view India with suspicion and mistrust. This can be bridged through a proactive ‘Neighbourhood First’ policy with India adopting import liberalization from South asia. This promotes trade and investments which will serve India’s strategic interests in the long term.

    Source:https://indianexpress.com

    Mains Question:
    1. South asia remains one of the least economically integrated regions of the world. What are the challenges to trade in South Asia?  What steps need to be taken to promote economic integration in the region? [15 marks, 250 words]
  • 7 PM Editorial |Providing Universal Social Security| 9th July 2020

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    Providing Universal Social Security

    Introduction:

    COVID 19 has brought economic hardship to billions of working class. It is more conspicuous in case of migrant labour in India. Faced with declining savings and lack of incomes, they faced hunger and homelessness. In absence of social security and weak state support, they were forced to migrate back to their native places.

    Such is the situation of nearly 90% of Indian labour force who are in the informal sector(casual labour, agricultural labour, self employed). They face uncertain incomes, lack job security and lack social security. Only 10% of the labour force in organized sector have social security in form of insurance, EPF(provident fund), pensions.

    Considering this there is a need for provision of universal social security as provided in Article 41 of directive principles. Article says that within the limits of its economic capacity, the State would provide “public assistance in cases of unemployment, old age, sickness, disablement, and in other cases of undeserved want.

    Social security code introduced in parliament is a right step. Such legislation must enable a progressive social security within financial and administrative capacities.

    Designing universal social security for labour force:

    Features that must be present are:

    • Employment guarantee: MGNREGA is currently acting as a tool of providing relief to distressed rural workers. Demand for work under it has doubled in many states. It shows how it is an effective social security tool which works based on self selection. Such employment guarantee schemes will provide incomes and reduce vulnerability to uncertain jobs in the informal sector.
      • Hence it must be extended to urban areas. Works such as sanitation, minor repairs, could productively use labour under such employment schemes. This is a win win situation as urban areas can create requisite infrastructure which is currently lacking.
    • Linking skill training to employment guarantee schemes: “Learning while earning” principle should be employed to build up human capital of India. Schemes like MGNREGA must be linked to skill development training. This can address skilled labour shortages in MSME’s and agriculture. This has been a successful approach of governments and employers in Germany and Japanwhere useful skills are learnt on the job, supplemented with off-line modules.
    • Universal free health care: Limitations of private health care in serving the poor is discernible in the ongoing pandemic. Hence there is a need for quality universal free public health care.
      • Universal insurance coverage must be provided. Currently less than 20% have insurance
      • Physical infrastructure – beds,ICU’s, etc – in public hospitals must be built up
      • Availability of Doctors, nurses, experts(surgeon etc) must be improved
      • Rural – urban divide in healthcare must be bridged
      • Digital technologies, telemedicine, pharmacy chains of generic drugs and greater use of trained nurses and paramedics can improve health care and lower costs dramatically
      • Promotion of healthier lifestyles to emphasize prevention of diseases.
    • Addressing technology induced job disruptions: COVID 19 will result in increased adoption of technology over physical labour. This has to be factored in designing universal social security
      • Automation and robots will displace low skilled jobs. Wealth generated by doing so need to be redistributed through universal basic incomes financed by  new taxes like robot tax
      • Gig economy has no employee-employer relationship. Considering this social security for such employees must be provided through labour laws.
    Conclusion:

    Income support, skilling and health care for all those who need it must be an essential part of universal social security. Apart from the labour force, vulnerable sections like disabled, the elderly, and expectant mothers must be provided social security assistance. Only through that can India realize the welfare state as envisaged in the constitution.

    Source:https://www.hindustantimes.com

    Mains Question:
    1. Social security is an essential part of a welfare state. In the context of COVID 19 pandemic, what should such social security entail? What step has India taken to provide social security to its citizens? [15 marks, 250 words]
  • 7 PM Editorial |Incentivizing High Value Agri Produce for Self Reliance in Agriculture| 6th July 2020

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    Incentivizing High Value Agri produce for Self Reliance in Agriculture

    Introduction:

    Atmanirbhar Bharat Abhiyan is announced by Indian government to promote self reliance in Indian economy. This was in context of COVID 19 induced disruption in global supply chains and economic downturn. Agricultural policy reforms were part of this scheme. Reforms in marketing, stock limits, contract farming were announced to promote self reliance in agriculture

    In agriculture, India has achieved significant progress in self-reliance compared to the 1960’s when there was dependence on food aid. Currently India is self reliant in food crops like rice and wheat.

    Indian foreign exchange reserves too have increased from about $1.1 billion in 1991 to more than $500 billion currently. Thus India has good forex cover to fund any emergency agricultural purchases.

    Let us examine India’s agricultural trade to identify areas where import dependency can be reduced and where exports can be boosted.

    Agricultural trade of India:

    Trends seen are:

    1. India maintained trade surplus in agriculture since liberalization of 1991
    2. Downturn in agricultural exports in the past 5 years. This impedes vision of doubling agricultural exports by 2022.
    3. Agri-export basket in decreasing order of exported value in 2019-20:
      • Marine products
      • Rice – Basmati and common
      • Spices
      • Buffalo meat
      • Sugar
      • Tea and coffee
      • Fresh fruits and vegetables
      • Cotton
    4. Edible oil imports account for nearly 50% of total agricultural imports. Malaysia and Indonesia are major suppliers who supply cheap palm oil. This is making Indian oil seed producers uncompetitive.
    Achieving self reliance through comparative advantage:

    Comparative advantage principle means exporting where there is a competitive edge and importing where competitiveness is lacking. Competitiveness in agri produce can be improved by increasing productivity.

    Currently rice and sugar cultivation is given incentives in form of power subsidies, fertilizer subsidies and price support(MSP and FRP – Fair and Remunerative Price).

    • India has low productivity in these cropscompared to competitors. Hence there is need to improve productivity in these crops.
    • These crops are water intensive. This is leading to depletion of groundwater and India becoming a netvirtual exporter of water. Overuse of fertilizers is causing land degradation through leaching of nitrogen in urea into groundwater and air pollution due to evaporation into the atmosphere.

    Incentives must be given to other crops to promote diversification. This will ensure self reliance by increasing exports and reducing imports. High value agri produce like fruits and vegetables, spices, tea and coffee must be incentivized to achieve competitiveness in these crops.

    Edible oils in particular is an area of focus for self reliance. India imported more than 15 million tonnes(mt) in 2019-20. This can be cut down by incentivizing domestic production.

    • Comparative advantage must be created by increasing productivity and recovery ratio of oil from oilseeds
    • Oil seeds cultivation needs a gestation period of 4-5 years. Government must support farmers in this period.
    • Oil palm has the maximum potentialto increase domestic edible oil output. Domestic oil palm production can replace nearly 50% of edible oil imports. Hence this must be incentivized in states of Andhra Pradesh, Karnataka and Tamil Nadu where it is suitable for cultivation.
    • Processing capacities must be enhanced to create economies of scale. Currently there is lack of vertically integrated plants with all 3 stages – Crushing and expelling; solvent extraction; oil refining
    Conclusion:

    By improving competitiveness of Indian agriculture, self reliance can be achieved. Oil palm in particular needs emphasis through long term vision and strategy.

    Source: https://indianexpress.com

    Mains Question:
    1. Edible oil imports make up the majority of Indian agricultural imports. What are issues for domestic production of edible oil and what steps can India take to address them to become self reliant in edible oils?[15 marks, 250 words]
  • 7 PM Editorial |India needs to review its 2013 Cyber Security Policy| 23rd June 2020

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    India needs to review its 2013 Cyber Security Policy

    Introduction

    National Cyber Security Policy, 2013 was formulated to create a secure cyber ecosystem in the country, generate adequate trust & confidence in IT systems and transactions in cyberspace and thereby enhance adoption of IT in all sectors of the economy.

    The incidents of cyber-attacks during COVID-19 Pandemic has increased manifold as the society embraces digital technologies. India is among the top 10 countries facing cyber-attacks. There have been almost three times increase in cases of phishing, spamming and scanning of ICT systems, particularly of critical information infrastructure. The role of hacker group called LAZARUS is well known in carrying out attacks on financial targets in India, Bangladesh and other South Asian countries.

    In this light, the government had announced that a new Cyber Security Policy, 2020, will be brought out.

    What is a Cyberspace?

    Cyberspace is complex environment consisting of interactions between people, software and services, supported by worldwide distribution of information and communication technology (ICT) devices and networks.

    Cyberspace is vulnerable to a wide variety of incidents, whether intentional or accidental, manmade or natural, and the data exchanged in the cyber space can be exploited for nefarious purposes by both nation-states and non-state actors.

    Information Technology (IT) is one of the critical sectors that rides on and resides in cyberspace. It has emerged as one of the most significant growth catalysts for the Indian economy.

    Objectives of National Cyber Security Policy, 2013
    • Creation of Secure Cyber Ecosystem:To create a secure cyber ecosystem in the country, generate adequate trust & confidence in IT systems and transactions in cyberspace and thereby enhance adoption of IT in all sectors of the economy.
    • Compliance to Global Security Standards:To create an assurance framework for design of security policies and for promotion and enabling actions for compliance to global security standards and best practices by way of conformity assessment (product, process, technology & people).
    • Strengthening the Regulatory Framework:To strengthen the Regulatory framework for ensuring a Secure Cyberspace ecosystem.
    • NCIIPC:To enhance the protection and resilience of Nation’s critical information infrastructure by operating a 24×7 National Critical Information Infrastructure Protection Centre (NCIIPC) and mandating security practices related to the design, acquisition, development, use and operation of information resources.
    • Indigenization of Technologies:To develop suitable indigenous security technologies through frontier technology research, solution oriented research, proof of concept, etc.
    • Testing and Validation:To improve visibility of the integrity of ICT products and services by establishing infrastructure for testing & validation of security of such products.
    • Human Capacity Development:To create a workforce of 500,000 professionals skilled in cyber security in the next 5 years through capacity building, skill development and training.
    • Safeguarding Privacy:To enable protection of information while in process, handling, storage & transit so as to safeguard privacy of citizen’s data and for reducing economic losses due to cybercrime or data theft.
    • Cybercrime:To enable effective prevention, investigation and prosecution of cybercrime and enhancement of law enforcement capabilities through appropriate legislative intervention.
    What are Critical Information Infrastructures?

    Critical Information Infrastructure (CII) is defined as those facilities, systems or functions whose incapacity or destruction would cause a debilitating impact on national security, governance, economy and social well-being of a nation.

    Examples: Reserve Bank of India (RBI), Nuclear Power Plants, Indian Space Research organization (ISRO), Department of Atomic Energy, transport, electricity, etc.

    National Critical Information Infrastructure Protection Centre (NCIIPC) is an organisation of the Government of India created under Sec 70A of the Information Technology Act, 2000 (amended 2008). It is designated as the National Nodal Agency in respect of Critical Information Infrastructure Protection.

    Types of Cyber Hackers

    There are varied kinds of cyber hackers such as — state, non-state, professional, freelancer’s groups, so-called “anonymous groups” that operate worldwide and conduct attacks internationally.

    Approximately more than one third of all cyber-attacks worldwide are launched from China. They have one of the largest military groups of cyber experts in the world. Countries like North Korea and Pakistan are also very active on their own and work in close collaboration with the Chinese. These countries have been accused of perpetrating state-sponsored attacks for a variety of purposes.

    Need to review the National Cyber Security Policy
    1. Advent of revolutionary technologies:Technologies like artificial intelligence, machine earning, internet-enabled devices and big data have complicated the cyber-attack ecosystem.
    2. Increasing incidences of cyber-attacks: There is significant increase in incidents relating to hacking, injecting malware through spam mails and other forms of exploiting vulnerabilities. There was an almost 56% rise in malicious traffic on internet during the lockdown period.
    3. Social transformation and inclusive growth: In the light of the growth of IT sector in the country, ambitious plans for the rapid social transformation and inclusive growth and given India’s prominent role in the global IT sector, creation of a suitable cyber security eco-system in the country, in tune with globally networked environment is necessary.
    4. Border disputes with neighbouring nations: The border stand-off has further increased worries about enhanced cyber-attacks from China and its close allies. Recently, Australia expressed concerns over Chinese cyber-attacks. The Chinese are in the process of developing technology to penetrate the internet through satellite channels.
    5. Success of Digital India Programme: With increasing internet penetration and smart phones, the vulnerabilities associated with cyber-attacks increases and may dampen the progress of Digital India Programme. Example: In September 2016, Indian banks faced a similar massive data breach, when 3.2 million debit cards got compromised after fraudsters exploited a vulnerability at Hitachi Payment Systems.
    6. Right to Privacy:Right to Privacy being a fundamental right (K.S Puttaswamy Case), puts the responsibility on the government to safeguard the privacy of an individual from various cyber-attacks.
    Way Forward
    • The National Cyber Coordination Centre urgently needs significant upgrade in all aspects, including technology and manpower.
    • The role of the national cyber security coordinator may also need to be reviewed regarding his effectiveness in comprehensively coordinating cyber security issues. Maybe he needs to be empowered.
    • There must be single-point of responsibility at the central level.
    • Proper coordination is needed between the coordinator and respective regulators.

    Heterogeneity of devices and software will increase with more built-in vulnerabilities. Tech and data, due to their very nature, will get more and more geopolitical attention. Therefore, it is better to be prepared now with respect to policy, legal framework, monitoring infra and technology to emerge as safe and a secure digital country.

    Source: orfonline.org

    Question:

    1.What are Critical Information Infrastructures? In the light of emergence of various cyber-physical systems and cyber-attacks, discuss the need to review the National Cyber Security Policy, 2013. Also suggest measures to strengthen the policy? (15 Marks)

  • 7 PM Editorial |One Sun One World One Grid: A journey of ironies?| 22nd June 2020

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    One Sun One World One Grid: A journey of ironies?

    Introduction

    Electricity can be generated round the clock from the sun as it sets in one part of the world but rises in another part. In fact, the Sun never sets for the entire Earth.

    To reap this advantage and ensure availability of electricity across the globe, the mantra of ‘One Sun One World One Grid’ was given by Prime Minister Narendra Modi in October 2018 while addressing the inaugural function of the 2nd Global RE-Invest meeting of the Indian Ocean Rim Association and the first assembly of the International Solar Alliance (ISA).

    What is ‘One Sun One World One Grid’ (OSOWOG) Project?

    OSOWOG is India’s initiative to build a global ecosystem of interconnected renewable energy resources. The blueprint for the OSOWOG will be developed under the World Bank’s technical assistance programme that is implemented to accelerate the deployment of grid connected rooftop solar installations.

    OSOWOG is planned to be completed in three phases. The first phase will entail interconnectivity within the Asian continent; the second phase will add Africa and the third phase will globalise the whole project.

    The responsibility for developing a long-term vision, implementation plan, road map and institutional framework for implementing ‘One Sun One World One Grid’ (OSOWOG) lies with the Union Ministry of New and Renewable Energy (MNRE).

    What is the need for ‘One Sun One World One Grid’ Project?
    • Success of International Solar Alliance (ISA):As a pioneer country in fight against Climate Change, India mooted the idea of ISA in 2015. ISA aims at making solar energy available 24*7 at affordable cost to all. Heads of about 120 nations have affirmed their participation in ISA. OSOWOG will further promote investments and cooperation.
    • 24*7 Electricity for All:Government aims to provide 24*7 electricity to all to ensure uniform economic development. OSOWOG will provide the platform to provide electricity in border and strategic areas like North Eastern State like Arunachal Pradesh, Western Himalayan states and Bihar and Uttar Pradesh.
    • Commitment to Multilateralism and Globalization: As a responsible member of UN, India aims to remove the economic and social disparities across the globe through promoting cooperation and coordination among solar energy rich nations and solar energy scarce nations. OSOWOG would also strengthen the alliance of Coalition for Disaster Resilient Infrastructure (CDRI).
      • Case Study: Cyclone Amphan in Odisha and West Bengal.

    Super-cyclone Amphan caused destruction worth USD 13 billion. It caused severe damage to power and communication infrastructure during COVID-19 Pandemic. It hindered the surveillance programmes of the state to contain the Pandemic.

    • Achieving Sustainable Development Goals: According to UN, more than 781 million people in 2016, or 39% of the world’s population, do not have access to clean fuels and technologies for cooking. Goal 7 of the SDGs aims to correct this enormous imbalance by ensuring everyone has access to affordable, reliable, and modern energy services by the year 2030. To expand energy access, it is crucial to enhance energy efficiency and to invest in renewable energy.
    • Fulfilment of Commitment under Paris Agreement: Under its Intended National Determined Contributions (INDC), India aims to achieve 175GWof renewal energy target by 2022 and 20-25% reduction in Emission intensity of GDP by 2020 compared to 2005 levels.
    • Strengthening Neighbourhood First Policy:Landlocked neighbours such as Nepal and Bhutan are rich in hydroelectric resources. OSOWOG will provide them the requisite platform to export their surplus electricity to electricity deficit nations. Government of India in association with Government of Nepal and Government of Bhutan is developing export-oriented hydro-electric projects such as Arun-III hydropower plant and Mangdechhu hydroelectric project respectively.
    • Countering China’s Economic assertiveness:OSOWOG is seen as India’s counter to China’s Belt and Road initiative (BRI) that is primarily an economic diplomacy strategy to boost its domestic economy by improving connectivity and cooperation among the current 78 partner countries.
    International Solar Alliance (ISA)
    • The International Solar Alliance (ISA) was conceived as a coalition of solar-resource-rich countries (which lie either completely or partly between the Tropic of Cancer and the Tropic of Capricorn) to address their special energy needs.
    • The initiative was launched at the 2015 United Nations Climate Change Conference (CoP21) in Paris in alliance with Government of France.
    • The primary objective of the alliance is to work for efficient exploitation of solar energy to reduce dependence on fossil fuels.
    • The alliance is a treaty-based inter-governmental organization.
    • Presently, it has 122 member countries.
    • It aims to mobilize investments more than worth USD 1000 billion by 2030.
    • Countries that do not fall within the Tropics can join the alliance and enjoy all benefits as other members, with the exception of voting rights.
    • After the United Nations, it is the largest grouping of states world-wide.
    Initiatives under International Solar Alliance (ISA) which promotes the concept of OSOWOG Project
    • Scaling Solar Mini Grids:The ISA secretariat in support with Deloitte, global advisory firm, is developing a robust implementation plan for the Mini-grids Programme. The ISA secretariat has also drafted and circulated a Model Mini-Grid Policy to National Focal Points
    • Scaling Solar Rooftop:The ISA secretariat has been working with officials of Peru and Ghana to provide technical support for preparation of roof-top projects. The ISA Secretariat has proposed Embassies/ Missions in India for Rooftop solar under RESCO Model.
    Issues with the ‘One Sun One World One Grid’ (OSOWOG) Project
    1. Geopolitics:Under COVID-19 uncertainties, the geopolitical implications of projects like OSOWOG are hard to decipher. Under the project, economies will be exposed to this common grid. Any disruption caused due to any bilateral/multilateral issues can potentially affect critical services in multiple continents and countries. Hence, not many countries may be willing to participate.
    2. Globalisation vs de-globalization: In this era of protectionism, trade-wars and a shift from multilaterism to bilateral and regional agreements, the idea of OSOWOG seems bleak. The coronavirus pandemic has further raised questions on the concept of globalisation. The major issue with renewable energy developers would be to deal with different governments and different market forces and thus different rules and regulations.
    3. Economic Benefit:Supply of energy through this integrated grid, in a time zone with a six-hour difference will require thousands of kilometres of transmission of the electricity. The transmission costs may thus outweigh the benefits of land and solar radiation.
    4. Centralised vs distributed generation: There is a difference in voltage, frequency and specifications of the grid in most regions. Maintaining grid stability with just renewable generation would be technically difficult. OSOWOG does not take into account the overlaps with the solar generation across regions where transmission lines are passing through. Thus, for the remote regions, distributed generation would be preferred over centralised generation.

    Therefore, it is important for India to re-look its targets and to focus on developing long-term and complete solutions that can reach the masses.

    Way Forward
    • The global review undertaken on behalf of the World Bank suggests that the economic benefits of such cross border transmission lines are truly maximised when they are constructed within a political union formed around common objectives, such as the EU or Scandinavia, etc.
    • Aggregate technical and commercial losses in countries like India, Nepal, Bangladesh, etc. are close to 20 per cent. Therefore, the distributed generation can be cheaper and directly serve the people in the hinterlands.
    • India should collaborate with China as it has expertise in ultra-high voltage network construction. China has already launched a global transmission grid project under the aegis of the Global Energy Interconnection Development and Cooperation Organization, dedicated to promote the sustainable development of energy worldwide.

    SourceDowntoEarth

    Question:

    1.Examine the importance and challenges therein in the concept of ‘One Sun One World One Grid’ (OSOWOG) in building a global ecosystem of interconnected renewable energy resources? (10 Marks)

     

  • 7 PM Editorial |TEXTILE SECTOR NEEDS A VISION AND MISSION| 20th June 2020

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    TEXTILE SECTOR NEEDS A VISION AND MISSION

    The Idea of Self-Reliance

     The Government of India has embraced ‘atma nirbhar’ or ‘self-reliance’ as a development strategy to reboot the Indian economy. It is about tapping India’s inherent strengths to emerge stronger as a nation, economically and otherwise. The larger vision of a ‘Atmanirbhar Bharat’, thus, is not just import substitution but to build capacity for manufacturers in India to dominate the global market.

    The idea of ‘Atma Nirbharta’ i.e. Self-Reliant can succeed only when requisite focus and attention is given on those sectors that are already self-reliant and are on a take-off stage to dominate the global market. The Textile Sector is a case in point.

    Why is the Textile Sector important?
    • Abundance of Raw Materials: It is the largest producer of cotton, accounting for 25 per cent of the global output. It is also the second largest producer of man-made fibres — polyester and viscose.
    • Agglomeration advantage of the entire value chain:Its inherent and unique strength is its incomparable employment potential owing to the presence of the entire value chain from fibre to apparel manufacturing within the country.
    • Employment generation:It is the biggest employer after agriculture and provides direct employment to 4.5 crore people and another 6 crores in allied sectors.
    • Labour Availability and Market:Labour availability is plenty and, most importantly, a strong domestic market exists.
    • Potential for Social Transformation:India needs to generate jobs that pay well, provide social protection to workers, support efficient production for export markets, and hold the potential for social transformation.
    • Foreign Exchange Earnings:India is the second-largest manufacturer of textiles and clothing in the world. India is also the second-largest exporter of textiles and apparel with a share of 5% of global trade. This sector accounts for seven per cent of India’s manufacturing output, two percent of GDP and 12 percent of exports worth $40 billions.
     Overview of the Textile Value Chain

    Textile sector includes cotton, jute, silk and woolen textiles. While India has the advantage of the entire value chain in the industry, currently the value chain is uncompetitive. The figure below from NITI Aayog indicates the current status of textile value chain (GVC) in India:

    Challenges in the Textile Sector
    • Lack of Scale:While India’s spinning capacity is of a global scale, the same cannot be said about weaving and apparel making. In fact, apparel units in the country have an average size of 100 machines. Compare this with Bangladesh which has on an average of at least 500 machines per factory.
    • Fluctuation in Availability of Raw Materials:Vagaries of monsoon affects the productivity in rainfed cultivation areas. Severe competition from other crops due to MSP further deters the farmer from growing jute.
    • Skewed Policies: GST on cotton is uniformly 5 per cent for fibre, yarn and fabric. But not so for man-made fibres (MMF), which are taxed at 18 per cent for fibre, 12 per cent for yarn and 5 per cent for fabric. This inverted tax structure makes MMF textiles costly. This explains why it accounts for just $6 billion of the $39-billion textile exports. But 72 per cent of the global textile fibre consumption is MMF.
    • Problem of Contamination: High contamination level and poor quality of fibre, both in fineness and length, are major concerns that need focused attention. Pests attack like bollworm attack on cottons further decreases the quality.
    • Obsolete Technology:Approximately 95% of the weaving sector in India is unorganized in nature.
      • It has challenges such as inadequate know-how, low focus on research, innovation in new product development and low technology upgradation.
      • Further, low productivity and automation levels also remain one of the biggest woes for the weaving industry.
      • In terms of technology adoption in the weaving sector, India has only 2% share in global shuttleless looms (i.e. modern looms) installed capacity.
    • Stagnating Exports: The share of textiles in India’s overall exports has declined from 15 per cent in FY16 to 12 per cent in FY 19. Relatively newer entrants like Bangladesh, Vietnam and Cambodia have gained substantially during this period. On the other hand, India’s apparel exports declined from $18 billion in FY17 to $17 billion in FY19.
    • Lack of Trade Agreements:Preferential Trade Agreements, including FTAs, help gain duty-free access to large textile markets such as the EU, Australia and the UK which, otherwise, levy 12-14 per cent import duty. They will help Indian players counter Bangladesh, Vietnam, etc. India’s FTA negotiation with the EU, Comprehensive Economic Cooperation Agreement with Australia and FTA with the USA have been in limbo for years. FTA with the UK after Brexit will face much more difficulties.
    Competition from Other Economies
    • China: China has a substantial share of 51% in cotton fabrics when compared to India’s 5%–6%.
    • Bangladesh:Bangladesh imports are highly competitive because it gets duty free access due to its ‘least developed country’ status. Recently, China through its economic diplomacy have waived off tariffs on 8256 products of Bangladesh. Bangladesh’s apparel exports have risen from $26.60 billion in 2015 to $33 billion in 2019.
    • Vietnam:Vietnam has increased its global export share of cotton yarn from 5% in 2012 to 15% in 2016 and has grown to become the third largest apparel exporter in the world. Vietnam has signed an FTA with the EU and its apparel exports will also suffer no duty from September.
    Government Initiatives in the Textile Sector
    • National Handloom Development Programme:Scheme will follow need based approach for integrated and holistic development of handlooms and welfare of handloom weavers.
    • Amended Technology Upgradation Fund Scheme (ATUFS):The objective of the scheme is to facilitate augmenting of investment, productivity, quality, employment, exports along with import substitution in the textile industry and also to indirectly promote investment in textile machinery manufacturing.
    • Scheme of Fund for Regeneration of Traditional Industries’ (SFURTI):Financial support is being provided for setting up of traditional industries clusters viz. Khadi, Coir & Village industries clusters.
    • Scheme for Capacity Building in Textile Sector (SAMARTH):It aims to skill the youth for gainful and sustainable employment in the textiles sector covering the entire value chain of textiles, excluding spinning and weaving.
    • PowerTex India:To avoid fluctuation in yarn price, government has launched a Yarn Bank Scheme as one of the component of PowerTex India
    • Scheme for Growth and Development of Technical Textiles:It aims to set up centers of excellence for infrastructural support.
    • Solar Charkha Mission:It is an enterprise driven scheme and envisages setting up of ‘Solar Charkha Clusters’ which will have 200 to 2042 beneficiaries (Spinners, Weavers, Stitchers and other skilled artisans).
    Recommendations
    • Promotion of Exports through FTA’s:The government should look through the prism of ‘atma nirbhar’ to adopt an appropriate ‘give and take’ policy and sign the FTAs. Job creation can be an important metric. Every $1 billion increase in textile exports adds 1.5 lakh jobs.
    • Expanding Weaving Capacity: The weaving sector is the backbone of the textile industry. On the one hand, promoting the weaving industry gives impetus to the domestic spinning industry and on the other, it makes our garment’ sector globally more competitive.
    • Investing in Technology Upgradation:To ensure rapid transformation of the weaving sector in India, under Amended Technology Upgradation Funds Scheme (ATUFS) of the Government of India, the weaving sector may be considered to get capital subsidy at par with garmenting and technical textiles.
    • Promotion of Cooperatives:Cooperative societies must be promoted and strengthened in rural and semi-urban areas where there is large concentration of handloom weavers.
    • Diversification of Textile Products:During COVID-19, the textile firms produced personal protective equipment worth 10,000 crore from zero. Technical textiles further needs to be promoted.
    Conclusion

    India needs a fresh blueprint for the textile sector. Once that is drawn up, the country needs to move into mission mode to achieve it. ‘Atmanirbharta’ will not be possible if the government fails those sectors that are already self-sufficient and capable of dominating the global market.

    With focused interventions in this sector, we might enhance its performance in terms of more investment, employment generation and export earnings.

    Source: TheHinduBusinessline

    Mains Practice Question
    1. Analyse the issues being faced by the textile sector in India. Suggest measures to address them. [15 Marks, 250 words]
  • 7 PM Editorial |CAN INDIA DE-COUPLE ITSELF FROM CHINESE MANUFACTURING?| 19th June 2020

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    CAN INDIA DE-COUPLE ITSELF FROM CHINESE MANUFACTURING?

    CONTEXT

     The overdependence of medical equipment during COVID-19 Pandemic on China and the recent border clashes with it in the Galwan valley in Eastern Ladakh has reignited questions about India’s dependence on Chinese manufacturing. India’s imports from China in 2019-2020 reached $65 billion, out of $81 billion two-way trade.

    Is this Pandemic a ‘blessing in disguise’ for Indian manufacturing? How well is India equipped to attract the companies that are relocating itself from China? Can Indian manufacturers free themselves from the deeply integrated supply chains with the manufacturing juggernaut China?

    How far has the ‘Make in India’ initiative reduced India’s dependence on China?

     Make in India initiative aimed at strengthening the manufacturing ecosystem of India. It’s a quest for a self-reliant India, which strongly relies on a thriving domestic industry which is local but acts globally, and is an integral part of global supply chains. Despite this initiative, our dependency on China has actually gone up in the last five years. India exports a lot of raw materials and intermediate products, and imports finished products from China.

    Our dependence on China is huge mainly because:

    • China is by and large widespread across different concentrations Example: China is one of the top sources of critical medical supplies for frontline healthcare workers in the COVID-19 battle.
    • There is not a wide diversification of countries from which India sources its imports because there isn’t a very widely diversified source of countries from which India can actually import.

    Therefore, it’s going to be a difficult choice for India to get out of this dependence and search for alternative partners.

    Concentrations and key sectors where dependency is acute on China: 
    • Capital Goods: India imports a wide variety of machineries, including electrical machinery, semiconductor driven machinery, etc.
    • Fertilizers, organic chemicals and active pharmaceutical ingredients (APIs): India imports 70% of its API’s from China.
    • Medical Equipments: Personal protective equipment (PPEs), testing kits,  humidifiers, medical masks, liquid soap, etc.
    • Electrical and electronics industry:

    • Automobile industry: About 27% of the roughly $17.5 billion worth of component imports into India comes from China, according to rating agency ICRA Ltd.

    Can India replicate what China did in the 1990s?

    China followed a global market-driven industrialisation strategy and an export-driven strategy in the 1990s to restructure its manufacturing ecosystem. But after the Global Financial Crisis in 2008, global value chains have in fact become more local. Countries are depending more on their own economies rather than on global markets. Thus, the strategy that China followed, when a large part of the demand came from global markets is difficult to replicate in the present era of protectionism and de-globalization.

    Will industries on a large scale relocate itself from China to India?

     China is central to a very large number of global and regional supply chains. It is because:

    • China offers the capacity to businesses to develop the supply chains by considerable lengths within itself because of its geography and broad-basing of different sectors.
    • China’s biggest value comes as a final stage assembler.
    • China continues to remain a major source of the final demand market.

    Post COVID-19 situation, the emphasis on the part of businesses is to make these chains shorter, more resilient, more durable, and locate them closer to the final demand markets. As a result of which, shifting physically supply chains out of the Chinese geography and it’s connected arms i.e. Hong Kong and Taiwan — is going to be pretty difficult because the geography offers agglomeration advantages, moving back and forth across borders and offering integrated facilities.

    Therefore, it’s doubtful that India will actually see substantive supply chain relocations out of China.

    Policy priorities to attract industries to India

     Despite being an open economy and offering attractive terms to foreign investors, there is a huge gulf between the FDI inflows between China and India. Priorities are as follows:

    • Skill Sets: Major FDI inflows are in service sectors because of acknowledged skills. Manufacturing lacks similar skill sets.
    • Infrastructure: To overcome locational advantage of China, India needs to provide 24*7 electricity supply, ports with state of the art technology, etc.
    • Productivity of  workers: Wage rates are lower in India than China but it’s actually productivity-linked wages that matter, and productivity in India is pretty awful.
    • Land Acquisition: Government has a huge land bank acquired under special economic zones policy and thus needs to be streamlined.
    • Red-Tapism: To further move up the ladder in the World Bank’s Ease of Doing Business Index, red-tapism needs to be eliminated.
    • Rationalization of Labour laws: Government of India must strike a balance between the right of labours and flexibility in labour laws for industries
    Why are South-East Asian economies attracting industries in huge numbers?

    Economies like Vietnam, Malaysia, Thailand, Cambodia or Bangladesh are competing for a slice of the pie of the relocated supply chains. There is a cultural commonness in business practices across regions that we can find in China, Japan, Korea, and large parts of South-East Asia, the emphasis on settling disputes through dialogues, the emphasis on informal consultations, as opposed to what we see in India.

    Despite having small markets, they have the ability to provide access to other markets in a far more effective fashion. Example: Vietnam concluded a free trade agreement with European Union, which will offer two advantages: relocated firms can take advantage of the European market and they can also export back to China. Along with that, they have the advantage of the greater ASEAN and Asia-Pacific region.

     Role of trading agreements for India to become lynchin in global supply chains

     WTO is the best set of rules for global trade as well as regional trade. Unfortunately, due to the issues in functioning of WTO, member countries have moved on to pursue regional agreements and bilateral agreements. RCEP got concluded without India.

    India is aiming to work towards relocation of supply chains with like minded partners, countries like Japan, Korea, Vietnam, which are all members of RCEP. These partners have a completely different sub-regional trade understanding and they will follow the rules of origin as per the RCEP agreement. This leaves little space for India to become the lynchpin.

     Conclusion

    India must understand the difference between reducing dependency on China, and reducing dependency on the rest of the world. Reducing dependency on the rest of the world is an approach that will drive India up the road of economic nationalism. Following the path of import substitution will lead to the path of autarky, which surely India is not talking about.

    India must strike a balance between trade agreements and indigenization of products. Policymakers must not send conflicting signals to the investors. The policies have to be transparent, predictable and consistent.

    Source: TheHindu

    Mains Practice Question
    1. Account for dependence of India on imports from China in key strategic sectors. Suggest measures to improve self reliance/ lowering dependency on China in these sectors. [15 marks, 250 words]
  • 7 PM Editorial |Reasons for India -China LAC standoff and why remaining Non Aligned is good advice| 17th June 2020

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    Reasons for India -China LAC standoff and why remaining Non Aligned is good advice

    What has happened:

    India and China are involved in standoff at Line of Actual Control (LAC) and Sikkim sectors which threatens to result in a major conflict. This main skirmish is happening in the region – Pangong Tso (Lake), the Galwan valley, the Hot Springs – Gogra area (all in Ladakh) and Naku La in Sikkim Sector. The major reason for the present standoff is India building Darbuk-Shyok-Daulat Beg Oldi road near the LAC, which has angered China. To diffuse the standoff, talks at the level of military commander has been held and they have reiterated that both sides are involved in ‘partial – disengagement’. India has demanded the restoration of status quo ante which existed in Mid – April 2020.

    The article explains the various reasons for the escalation of Chinese assertion in the LAC and what can India do to reduce the tension. The article argues that India must truly remained non – aligned.

    Reasons for the Chinese assertion at LAC

    Four reasons have been provided for China’s actions:

    Firstly, the geopolitical factors have contributed to it. India’s perceived tilt towards USA orbit of influence which is more pronounced in the domain of US – China relations. Several instances confirm the perception that India tends to side with the U.S. and against China whenever there is a conflict of interest between the two. For example – geopolitical convergence between US and India in Indo – Pacific, India being a member of QUAD, possible expansion of G-7 to include India but exclude China. China is wary of increasing proximity between India and USA and have said that India need to maintain equidistance with USA and China.

    Other countries are seeing India as an counter weight to growing China. This is also creating an impression of alignment of India with anti-China sentiments in other countries, which China clearly perceives as provocation

    Secondly, Increase in bilateral tension between India and China. India’ actions such as a) opposition to Belt and Road Initiative (BRI), China Pakistan Economic Corridor (CPEC) b) India’s assertion in Gilgit Baltistan c) recent curbs and restriction on Chinese Foreign Direct Investment d) rising anti-China propaganda has angered China.

    Thirdly, Impact of China’s Internal Dynamics. China’ behaviour is impacted by internal pressure that have been generates in China due to handling of COVID-19 crisis at home. It is the most serious health crisis in China since 1949.

    Fourthly, Economic Pressures. Chinese economy is seeing downturn. There has been a tide of rising anti – China sentiment world over and there has been demand for relocation of Global Supply Chain outside China. It is being argued that Chinese leadership may have taken these stand to divert attention from the domestic economic pressures.

    Conclusion

    Both India and China must avoid any issue which may lead to wider conflagration. India must not be seen as the front end of a belligerent coalition of forces seeking to put China in its place. It is advisable that India remains truly non-aligned and not become part of any coalition that would not be in India’s long-term interest.

    SourceTheHindu

    Mains Practice Question

    1.Critically analyze the factors for the recent India – China LAC standoff. What options India have to diffuse the tension? (15 Marks/ 250 words)

     

  • 7 PM Editorial |Diversification of Food Basket Through Pulses| 10th June 2020

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    Diversification of Food Basket Through Pulses

    Context:

    COVID 19 pandemic has brought focus on Nutrition. Outbreak has disrupted food supply chains and hence availability of nutritious food grains. UN chief has warned that every 1% fall in global GDP leads to an additional 7 lakh stunted children. This disruption is seen even in countries with abundant food stocks like India due to travel restrictions.

    Yet this crisis also presents an opportunity to reorient the food basket of India towards a more nutritious diet and also ecologically sustainable one. Currently there is predominance of cereals (rice and wheat) in Indian food basket. Pulses can be promoted to diversify this food basket to achieve nutritional and ecological goals.

    Pulses in India:

    Red gram (also tur) and Bengal gram are predominantly produced.

    Red gram: A Kharif crop produced in deccan plateau. In some areas of South India it is also grown as a Rabi crop. Maharashtra accounts for 33% of total production. Uttar Pradesh, Karnataka, Gujarat are other prominent producers.

    Bengal gram: A leguminous crop grown in Rabi period. Bundelkhand region and central highlands of Madhya Pradesh and Uttar Pradesh are prominent production areas.

    Importance of pulses:
    1. They are an essential part of Indian diet. Increasing disposable incomes and enhanced awareness of nutrition is increasing demand for pulses. Hence food security of India also depends on adequate production.
    2. They are a source of protein for vegetarian diet
    3. Less water intensive and hence suitable for dryland agriculture in India. One-hectare millimetre of water can produce 12.5 kg of Bengal gram while it can produce only 7 kg of wheat and 2.5 kg of paddy. This is important from an ecological perspective to reduce water stress of agriculture.
    4. They are leguminous  i.e. they fix nitrogen into soil and thereby improve fertility of soil.
    Pulses production and productivity:

    In 2015, total demand for pulses was 22 Million tonnes (mt) and 5 million tonnes (mt) was imported. It is expected to increase to 30 mt by 2030. Production and yields in India are very low and hence are not enough to meet future demand. Studies point out low yields are due to pests (Pod borer is pest which causes 50% yield losses) and diseases, weather related incidents and improper application of fertilizers. These have to be addressed. India has to increase yields by 30% to address future demands without relying on imports.

    Steps needed to boost production and yields:
    1. Investment in research: High yield varieties, pest resistance(borer resistance), increased protein content, fast maturing varieties need to be developed by ICRISAT and other institutions. BT technology can be used for developing pest resistant varieties.
    2. Micro irrigation technologies like Hose Reel technology can be deployed for achieving ‘More Crop Per Drop’. In addition, drought resistant varieties can be developed by studying the genome and using GM tools for water use efficiency.
    3. Mixed cropping can be encouraged to plant pulses along with sugarcane and rice fallow.
    4. Fallow lands can be brought into cultivation through pulses
    Pulses marketing and farmers incomes:

    Farmers face a market of uncertain prices in case of pulses. Below is an example of 2015 and 2016

    Price fluctuation in 2015-16  Tur dal prices soared due to high demand in 2015. Government has relaxed import restrictions to reduce retail prices. This has led to increase in imports and hence reduction in prices

    In 2016, production of pulses increased due to high prices in 2015. This led to supply glut due to high production in India combined with high imports. Sharp reduction in prices led to reduced incomes to farmers

    MSP prices have increased continuously. But considering high imports and supply glut, market prices remained low. Coupled with low procurement by the government, this has led to low incomes for farmers.

    Hence there is a need for market reforms and predictable import and export policy. These have to balance farmers incomes and consumer interests (no high retail prices).

    Steps that can be taken:
    1. e-NAM is a good initiative in achieving one nation one market. Efforts must be made to connect all states and APMC’s into it.
    2. Village level processing centres can provide markets for farmers. They need to be established by providing policy support to FPO’s and entrepreneurs.
    3. Predictable policy environment for import and export of pulses is needed. Sudden decisions to import can land the farmers in distress.
    4. Pulses need to be included in PDS and in the mid-day meals to improve nutrition standards and to provide a market for farmers.
    Conclusion:

    Pulses are important for food security, nutrition and ecological balance. Their production and consumption need to be promoted. This can achieve the vision of ‘Doubling farmers incomes by 2022’ as well as Sustainable Development Goals (2-No hunger; 12 -responsible consumption).

    Source – https://www.financialexpress.com

    Mains question:
    1. Describe cropping patterns of pulses in India? Explain the importance of pulses and steps needed to increase their production in India? [15 marks, 250 words]
  • 7 PM Editorial |Bihar and eastern India: Need for state specific stimulus| 6th June 2020

     

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    Bihar and eastern India: Need for state specific stimulus

    What has happened:

    Government of India has announced a Rs. 20 lakh crore package of AtmaNirbhar Bharat Abhiyan. It is to provide stimulus to the economy and reduce the impact of COVID 19 on livelihoods. Four tranches of this package include measures for  MSME’s, NBFC’s, agriculture, migrant welfare, defense, space, power etc. These are primarily supply side measures like increased credit, marketing reforms, liberalization, privatization. It focuses on reviving investment by industry and hence employment.

    Experts argue that such one-size-fits-all supply side interventions will not benefit Northern and Eastern states where industrial development and startups are low. They also sight the difference between Nehru’s ‘self sufficiency’ and Modi’s ‘Atmanirbhar Bharat’. Nehru’s self sufficiencyfocussed on economic empowerment from below, while Modi’s ‘Atmanirbharbharat’ is more individualistic, covering select industrialists and ‘start-ups’.Thus, the advantage of the present stimulus, if any, will accrue only to the southern and western Indian States which are industrially advanced. Thus, they argue for a regional and state specific approach in states like Bihar.

    In addition, rent seeking behaviour prevalent in Eastern and some northern states will make this stimulus less effective. Example of rent seeking is crony capitalism where industries seek to influence regulation through donations to political parties and candidates

    Such rent seeking behaviour in these states is an effect of historical causes. Understanding them will help in formulating state specific stimulus to improve governance and economic growth.

    Rent seeking and poor governance in Eastern India- Historical causes:

     Zamindari/Permanent settlement areas of British India were present in Eastern India(Bengal, Odisha, Bihar). In this system, intermediaries between state and peasants collected land revenues. They didn’t contribute to any economic investment and only seeked collection of revenues. This feudal system had imbibed rent seeking behaviour in elites in these areas. Attitude towards civil services is an example of this. Civil services is seen as an avenue to help people from respective caste or region.

    Socio-economic factors too contributed to rent seeking behaviour. Land reforms are poorly implemented in states like Bihar, Jharkhand leading to wealth inequalities. In addition, socio religious movements for equality of castes, class were not prevalent in states like Bihar, Jharkhand. These were concentrated in Bengal, Western and Southern India. Examples are Raja Ram Mohan Roy’s Brahmo Samaj in bengal; Jyotiba Phule’s SatyasodhakSamaj in Maharashtra; Sri Narayana Guru Dharma Paripalana Movement(SNDP) in South India. Hence in absence of land reforms and socio religious reform movements, rent seeking has continued since centuries.

    Poor governance in eastern regions is also the cause of less industrialization. Lack of development strategy at regional level has led to lack of industrialization. During British times all entrepreneurship was discouraged. Post Independence, freight equalization policy prevented industrialization.

    Freight Equalization policy: 1952 – 1993

    ●     Objective was to achieve equal industrial development across the country by subsidizing transportation of minerals to any area of the country.

    ●     It led to establishment of industries near coasts in Western and Southern India. Maharashtra and Gujarat benefited the most

    ●     It had negative effects on the mineral rich eastern states of Odisha, WB, Bihar(then including Jharkhand), MP(including Chhattisgarh). Prior to independence these were the areas of industries with Tata, Dalmia etc.

    Comparison with ryotwari areas:

    In contrast, in areas of the Ryotwari system there is direct settlement between the state and peasants. Southern India and Western India were areas of such an agrarian system during British times. These areas are now characterized by industrialization and development.

    In these areas the feudal system is weak. It allowed for substantial social movement (for example, the anti-Brahmin movement) which acted as a lubricant to develop a law-enforcing civil society and sub-national identity.Hence, rent seeking behaviour is low. Excess capital is invested by elites in economic activities. Example is Kammas of Andhra Pradesh who invested in tobacco, films and knowledge industries. This is seen across states such as Tamil Nadu, Gujarat, Maharashtra.

    Socio economic reforms led to further weakening of feudal system in these areas. Land reforms and socio religious movements created conditions for reduced socio-economic inequalities.

    Good governance with a clear economic vision too contributed to industrialization. Experts were used for advancing socio-economic agenda. Examples are M. Visvesvaraya’s Five year plan was adopted by Wodeyar dynasty of Mysore; Dr.B.R.Ambedkar was sent to Colombia university. Financial institutions like Andhra Bank, Bank Baroda, Syndicate bank were established.  Post independence, many finance ministers were from these regions.

    Conclusion:

    Eastern India and some Northern states have poor governance and rent seeking tendency. Considering this, a state specific stimulus is needed in social, economic and governance spheres. Land reforms must be taken up. Civil society must be encouraged to bring social transformation to reduce influence of caste and religion based identities.

    Related revision topics:
    1. Land revenue settlement systems in India during British rule

    Source: TheHindu

    Mains question:
    1. Explain zamindari and ryotwari systems of land revenue settlement? How did they impact industrialization in their respective areas? [15 marks, 250 words]
  • 7 PM Editorial |How India can become self-reliant| 27th May 2020

     

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    How India can become self-reliant

    Atmanirbhar Bharat Abhiyan has been announced by the government of India to achieve self-reliance. Industrial policy changes in sectors such as defence, agriculture, space, power, mining have been included in this initiative. Achieving self reliance requires India to reform it’s R&D capabilities, education, skilling and public health.

    Let us see how self reliance evolved in India, what lessons can be learnt from other nations and path ahead.

    Evolution of self reliance in India:

    1947-1991:Pre liberalisation era

    1. Steps taken:
      1. Planning commission was established with objectives of growth, self sufficiency, modernization, equity
      2. Green revolution was undertaken which provided self sufficiency in agriculture
      3. Import substitution through tariffs and restrictions reduced competition to Indian industry and developed indigenous capabilities
    2. Failures in achieving self reliance:
      1. Industrial policy, 1956 provided for license permits for establishment and expansion of industries. This was exploited by industrial houses to obstruct entry of innovative new products. This resulted in India losing out on Industrial revolution 3.0 in electronic goods, micro processors, mobile phones, global value chains. Hence Indian industry was characterized by low quality, poor technology and globally uncompetitive.
      2. Reduced competition from foreign imports due to import substitution resulted in stagnation of quality of products.

    Post 1991: Liberalization, Privatization, Globalisation

    1. Steps taken:
      1. PSU’s were deemed inefficient and uncompetitive globally. Hence disinvestment and their confinement to core sectors was done.
      2. Industrial licensing confined to select industries such as alcohol, explosives, cigerattes etc. This was to enhance innovation by easing entry of new players
      3. Globalization through offshoring in areas such as IT, BPO. This was done with a view that global companies will bring new technologies to India and there is no need to research them again.
      4. Import substitution was removed by reducing tariffs, removing quantitative restrictions, import licensing. This is to enhance competition and hence innovation and quality
    2. Failure in achieving self reliance:
      1. PSU’s were major contributors to R&D in India. Due to reduced capital investment in these, research and modernization was effected. At the same time, private sector have not invested in R&D. R&D investment is about 1% which is low. This resulted in India becoming importer of technology
      2. FDI has brought technologies but they were guarded by foreign companies through intellectual property. Minimal transfer of technology occured undermining self reliance.
      3. Cheaper imports negatively impacted Indian industry. API in manufacturing of medicines is an example where Chinese imports displaced Indian industry and hence self sufficiency
    Lessons from other countries:

    China, South Korea, Taiwan, Hongkong, Singapore have invested in education and skill development, planned state investment in R&D, technology, infrastructure and policy support to private companies. This has resulted in development of indigenous capabilities in advanced technologies and manufacturing such as electronic goods, microprocessors, robotics.

    China is pursuing super power status through technology by investing in transition from low end manufacturing to advanced manufacturing. Industrial revolution 4.0 technologies such as 5G, quantum computing, robotics and automation, Artificial intelligence are some areas of focus by China.

    Steps to achieve the goal of self reliance:
    1. Investment in education and skilling to be raised to 6% of GDP. Sciences need to be strengthened from school level. This will enhance research capabilities in higher education
    2. State funded R&D investment through PSU’s, universities and research institutions like DRDO, ICAR. This has to include basic research. About 3-5% of GDP is state funding for R&D in South Korea, Taiwan, Singapore. This can be a benchmark.
    3. Focus on areas of electric vehicles, photovoltaics, artificial intelligence, robotics, UAVs, biotechnology
    4. Policy framework to promote private sector investment in R&D needs to be taken up. R&D activities can be included as part of Corporate Social Responsibility (CSR) activities.
    5. Promoting industry-academia-research institutions linkages.
    6. Stronger public health system which aids in improving efficiency of the economy and boosts expenditure on education and thus self reliance.

    Source: TheHindu

    Mains Question:
    1. Atmanirbhar Bharat Abhiyan has announced by the government of India to achieve self-reliance. What steps did India take for self reliance since independence and what are their shortcomings? [15 Marks, 250 Words]
  • 7 PM Editorial |ACHIEVING SELF RELIANCE IN DEFENSE| 23rd May 2020

     

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    ACHIEVING SELF RELIANCE IN DEFENSE

    CONTEXT: As part of Atmanirbhar Bharat Abhiyan, government of India has introduced policy changes to achieve self reliance in the defense equipment production and procurement while addressing strategic and national security concerns. In addition, New Defence Procurement Procedures (DPP), 2020 are under formulation and Chief of Defence Staff (CDS) is tasked with promoting indigenous equipment in the armed forces.

    MEASURES ANNOUNCED:
    1. Make in Indiafor Self-Reliance in Defence Production:
      1. Notify a list of weapons/platforms for ban on import with year wise timelines
      2. Indigenisation of imported spares
      3. Separate budget provisioning for domestic capital procurement
      4. Coexistence of indigenous R&D with import of cutting-edge military technologies to obviate near-term defence vulnerabilities
    2. Corporatisation of the Ordnance Factory Board(OFB)and eventually will be listed on the stock market to Improve autonomy, accountability and efficiency in Ordnance Supplies
    3. FDI limit in defense manufacturing under automatic route will be raised from 49% to 74%
    4. Time-bound defence procurement processand faster decision making will be ushered in by :
      1. Setting up of a Project Management Unit (PMU) to support contract management
      2. Realistic setting of General Staff Qualitative Requirements (GSQRs) of weapons/platforms
      3. Overhauling Trial and Testing procedures
    IMPORTANCE:
    1. Economic:
      1. Indigenous procurement will help reduce the huge defence import bill. India was the largest importer in the past decade accounting for about 12% of global arms imports.
      2. Negative list and enhanced FDI limits, encourage our private defence manufacturers and joint ventures with foreign manufacturers, both new and existing
      3. Indigenisation leads to defense manufacturing which promotes economic growth and employment
      4. Defense exports will bring in forex
    2. Technology: Negative list of imports and realistic quality requirements will reduce foreign competition. This removes hurdles for Indian platforms and subsystems such as Akash and Nag, the Light Combat Aircraft and the Light Combat Helicopter, artillery guns, radars, electronic warfare systems and armoured vehicles.
    3. National security:
      1. Domestic production reduces vulnerabilities during crises by reducing dependence on imported spares, ammunition and weapons. Kargil war highlighted this
      2. Project Management Unit (PMU) and overhauled Trial and Testing procedures will reduce delays in procurement(Rs.4 trillion procurements of 200 proposals in early stages since 5 years) and hence enhancing defense preparedness.
      3. Better integration of OFB into the larger defence manufacturing ecosystem by bringing autonomy, accountability and efficiency
    4. Geo Strategic:
      1. Great powers have defense self reliance at their core. For India’s aspirations of Asian century, SAGAR, defense self reliance is vital
      2. Becoming a pole in multipolar world
    GOING AHEAD:
    1. Plan for the ammunition and spares; repair, maintenance and overhaul facilities and, at the next level, the upgrade of weapons platforms to be eventually manufactured in India so that we are not driven to seek urgent replenishments from abroad during crises
    2. CDS could reexamine existing procurement proposals from a tri-service angle, to avoid redundancy of capacities across the services and prioritise those with indigenous research and development
    3. Long-term integrated perspective plan of the requirements of the armed forces giving future picture to industry
    4. Proposed DPP, 2020 to consider:
      1. Cost evaluation has to evolve from mechanical application of the L1 (lowest financial bid) principle to prioritising indigenous content
      2. Definition of indigenisation itself needs to privilege technology over value or volume
      3. strategic partnerships between Indian and foreign companies
    5. Transparent export policy
    6. Level playing field between DRDO and private sector. DRDO’s conflict of interest as the government’s sole adviser, developer and evaluator of technologies have to be addressed
    RELATED REVISION POINTS:
    1. CDS
    2. Defense Procurement policy
    3. Defense Production policy

    Source – The Hindu

    MAINS QUESTION:
    1. Discuss the proposals for defense sector self reliance as part of Atmanirbhar Bharat Abhiyan and their importance? (250 words)
  • 7 PM Editorial |A Moment for the True Revival of MGNREGA | 22nd May 2020

     

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    A Moment for the True Revival of MGNREGA

    Context: The Centre announced to pump additional Rs 40,000 crore for Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) for FY21, as part of the ‘Aatma Nirbhar Bharat’ stimulus package to allay the plight of the migrant workers returning to villages from the cities.

    About MGNREGA
    1. Concept:MGNREGA is a social security measure that aims to guarantee the ‘right to work’. It aims to enhance livelihood security in rural areas by providing at least 100 days of wage employment in a financial year to every household whose adult members volunteer to do unskilled manual work.
    2. Features: Employment must be provided with 15 days of being demanded failing which an ‘unemployment allowance’ must be given. Gram Sabhasmust recommend the works that are to be undertaken and at least 50% of the works must be executed by them.  PRIs are primarily responsible for planning, implementation and monitoring of the works that are undertaken. Social audits are conducted by gram sabhas to enable the community to monitor the implementation of the scheme. Funding is shared between the centre and the states.
    3. Operation:Total individuals working under the scheme rose to 7.87 crore in FY20, with the number of households rising to 5.47 crore. This was the highest since at least FY17, indicating a lack of job opportunities in the broader economy. A record number of 9.33 crore persons demanded work under MGNREGA in last financial year, against that 9.30 crore individuals were offered jobs and 7.89 crore individuals worked.
    Significance of MGNREGA 
    1. To Fight the Covid Crisis:Migrant workers in the country number between 12 crore and 14 crore at any point of time, including 6 crore to 8 crore short-term migrants, most of whom are now headed back to their villages as their work sites in urban areas have closed because of the lockdown. Many others might enroll themselves since employment prospects are likely to remain stressed in urban areas for several months.
    2. Social Security and Social Justice:MGNREGA has been a critical source of income for female-headed households. A major proportion of the beneficiaries — much higher than their percentage in the general population — belong to SC/ST and other marginalized communities.
    3. Sustainable Assets:The scheme has boosted agricultural productivity through development of wasteland/fallow land, and construction of post-harvest storage facilities and work sheds. MGNREGA works have contributed to improved ground water levels, and increased availability of drinking water for humans and livestock.
    4. Rural Economy:It has given a fillip to rural entrepreneurship, with households using the supplementary income to start a rural business. It has a multiplier effect on the rural economy, with the additional purchasing power generated from it spent on items produced in the rural economy.
    5. Human Development:In many states, up to half of the MGNREGA income is spent on food, which improves health and nutrition — a critical factor in a country plagued by malnutrition.   
    Criticism of MGNREGA
    1. Labor Market Distortions:MGNREGA has altered the power balance between the landless poor and their employers (agricultural landlords, labor contractors), making it less loaded in favor of the latter. By raising rural incomes, it has decreased distress migration to the cities, thereby reducing the numbers of the reserve army of labor, and increasing the cost of labor.
    2. Existential Crisis:State governments had begun to implement MGNREGA like a supply-driven scheme, instead of running it like a demand-based guarantee backed by law.
    3. Low Wage Rate:Various judgements have upheld that the MGNREGA wage rate cannot be less than the minimum agricultural wage rate of the state. The ridiculously low wage rates have resulted in lack of interest among workers in working for MGNREGA schemes, making way for contractors and middlemen to take control, locally.
    4. Insufficient budget allocation:MGNREGA’s success at the ground level is subject to proper and uninterrupted fund flow to the states. Almost every year, more than 80 per cent of funds get exhausted within the first six months.
    5. Lax Implementation:Workers had begun to lose interest in working under it because of the inordinate delays in wage payments. With very little autonomy, gram panchayats had begun to find implementation cumbersome.
    6. Too much centralization weakening local governance:A real-time MIS-based implementation and a centralized payment system has further left the representatives of the PRIs with literally no role in implementation, monitoring and grievance redress of MGNREGA schemes.
    Way Forward

    Short Term Measures in MGNREGA to fight Covid Crisis 

    1. Workers turning up at the worksite should be provided work immediately, without imposing on them the requirement of demanding work in advance.
    2. Local bodies must proactively reach out to returned and quarantined migrant workers and help those in need to get job cards.
    3. At the worksite, adequate facilities such as soap, water, and masks for workers must be provided free of cost.
    4. Gram panchayats and elected representatives need to be provided with adequate resources, powers, and responsibilities to sanction works, provide work on demand, and authorize wage payments to ensure there are no delays in payments.
    5. The limited coverage of bank infrastructure in rural areas must not be made a hurdle. Attempts to distribute wages in cash, sans biometric authentication, must be rolled out.
    6. While many governments will possibly prioritize individual land-based works to comply with instructions of physical distancing, it is important to also keep community works going to ensure that landless workers are not crowded out of the program. 

    Long Term Measures for Revival of MGNREGS

    1. Funds:After the additional Rs 40k crore allocated, the budget for 2020-21 is now above Rs 100k crore. This is the highest allocation for MGNREGA in any year since the passage of the law. However, the allocation, which amounts to 0.47 % of the GDP continues to be much lower than the World Bank recommendations of 1.7 % for the optimal functioning of the program.
    2. Wages:Wages offered under MGNREGA were upped in April, from Rs 182 to 202 per person. This is too small an increase and need be revised upwards.
    3. Minimum Work:The limit of 100 workdays per year for a member of each rural family needs to be raised to 150 days.
    4. Demand Orientation:Need to strengthen the demand-driven aspects of MGNREGA through a focus on local level social audits, funding and tracking of outcomes. In order to improve transparency and the accountability of Sarpanchs, it is recommended that MGNREGA projects be tracked right down to the village-level and not just the Gram Panchayat level as is the practice now.
    5. State Capacity:States should be provided with support to improve their capacity and allowed a degree of flexibility in MGNREGA implementation.
    Conclusion:

    With nearly eight crore migrant workers returning to their villages, and with an additional allocation for the year, this could be a moment for the true revival of MGNREGA.

     Main Source: https://indianexpress.com/article/opinion/columns/india-lockdown-rural-distress-coronavirus-a-moment-to-revive-mgnrega-6421558/

     Mains Question (GS 2: Topic 12 – mechanisms for vulnerable sections)
    1. MGNREGA has yielded many benefits to the vulnerable sections in rural areas, but it continues to be marred by implementation hurdles and lack of political will. Discuss.

     

  • 7 PM Editorial |A 1991 moment for agriculture : On Agriculture Reform| 19th May 2020

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    A 1991 moment for agriculture : On Agriculture Reform

    What has happened

    The third tranche of the Atmanirbhar Bharat Abhiyan focused on improving the infrastructure gaps and governance issues plaguing the farm sector. It had 11 major points, of which eight are related to miscellaneous items like financing farmgate infrastructure. The other three Agricultural Reforms relate to:

    1. Amending the Essential Commodities Act (ECA) of 1955
    2. Bringing a Central legislation to allow farmers to sell their produce to anyone, outside the APMC mandi yard, and enable barrier-free inter-state trade
    3. Creating a legal framework for contract farming
     Amending the Essential Commodities Act (ECA) of 1955

    The Central government will deregulate the sale of six types of agricultural produce, including cereals, edible oils, oilseeds, pulses, onions and potatoes.

     Background of the Essential Commodities Act, 1955: 
    1. The ECA has its roots in the Defenceof India Rules of 1943 when India was plagued by famines and facing the effects of World War II.
    2. It was relevant in the mid-1960s due scarcity of food grains caused by back-to-back droughts.
    3. India needed a legislation to tackle illegal stockpiling as it was dependent on PL480 imports from the USA.

    In present times, India is the largest exporter of rice in the world and the second-largest producer of both wheat and rice. It’s self-sufficient with huge buffer stocks and doesn’t require a law to ensure availability of food grains.

     Shortcomings of the Essential Commodities Act, 1955:
    1. The Economic survey (2019-20) describes the Essential Commodities Act (ECA) as anachronistic and scarcity-era legislation irrelevant today.
    2. It discourages private investment in storage facilities as the ECA can put stock limits on any trader, processor or exporter.
    3. Frequent and unpredictable imposition of blanket stock limits distorts
      • movement up the agricultural value chain
      • development of a national market for agricultural commodities
    1. It has remained unsuccessful in controlling the volatility of the prices of Dal, Sugar and Onions.
    2. ECA enables rent seeking and harassment by overzealous bureaucracy.
    3. Poor remuneration for farmers when prices plummet immediately after harvesting due to lack of storage facilities.
    4. It also leads to inflation in the lean season caused by distress selling due to lack of warehousing and storing facilities.
     Impact
    1. Private Investment: Removalof stock limits will encourage private sector investment in agricultural value chain.
    2. Creation of warehouses and post- harvest agricultural infrastructure (processors, mills and cold chain storage).
    3. Better remuneration: Prevent distress selling by the farmers due to lack of warehouses.
    4. Inflation control:Lack of storage facilities in the lean season leads to flaring up of prices for the consumers.
    5. Wastage: Prevent wastage of agri-produce that happens due to lack of storage facilities.
    6. Prevent harassment by the bureaucracy and cut down red tapismin farm sector.
    7. Balance of Payment: Promote exports leading to more forex earnings that would improve the Balance of Trade.
     Challenges 
    1. The provision of re-imposition of stocking limits under the ECA if the prices go up.
    2. The law provided deterrence to black marketing and hoarding.
    3. The risk of future inflationary food price spikes in case of total deregulation.

    This amendment can help both farmers and consumers by bringing in price stability and preventing wastage of agri-produce.

     Central legislation on Agri-Marketing

    It allows farmers to sell outside the APMC yards and enables barrier-free inter-state trade.

     Advantages of the proposed law:
    1. Greater competition amongst buyers by breaking the monopoly of APMC markets
    2. Creation of a unified national market and connecting farmers to end users.
    3. Lower the mandi fee and the commission for arhatiyasor intermediaries.
    4. Reduce multiple cessesimposed on APMC markets by state governments
    5. Better returns: The proposed law will open more choices for the farmers and help them in getting better prices.
    6. Better spatial integration of prices:By facilitating the movement of agri-goods and removing barriers in inter-state trade
    7. Remove regional distortions: Farmers of regions with surplus produce will get better prices and consumers of regions with shortages, lower prices.
     Contract farming law

    Third, the Contract farming law plans to bring in legal framework to provide more certainty and choice for farmers.

     Advantages of the law:
    1. Provide assurance of a price to the farmers before sowing.
    2. Cropping decisions will be based on forward prices instead of the last year’s prices.
    3. Lower NPAs: Minimize market risks of the farmers leading to less loan defaults and consequently lower NPAs
    4. Promote the idea of Farmer producer organizations’ (FPOs) for collective bargaining.
     Challenges and Way forward:
    • Asymmetric position: Big processors and organized retailers will have an upper hand dealing with individual farmers.
    • Promote farmer producer organizations (FPOs) to improve the bargaining power vis-à-vis large buyers.
    • FPOs will help ensure uniform quality and lower transaction costs.
    • Most of the FPOs get loans at high rates as they depend on microfinance institutions.
    • Role of NABARD:It can ensure that all FPOs get their working capital at cheap interest rates.

    These governance reforms can go a long way in building efficient value chains and ensuring better returns for farmers.

    Source: IndianExpress

     Practice Question:

    ‘In the long term, The Essential Commodity Act did opposite of what it is intended for’. Critically Analyse

  • 7 PM Editorial |Are labour law reforms the panacea to the investment problem?| 14th May 2020

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    Are labour law reforms the panacea to the investment problem?

     What has happened? Several states including UP, Gujarat, Rajasthan has diluted labour laws.

    India has more than 40 central labour laws and about 200 state enacted labour laws. Such a huge number of laws make it difficult for a business to setup and run smoothly. In order to attract business (private investment), several states have recently brought changes/dilution in labour laws, through ordinances. The states argue that these reforms in labour laws will generate employment, attract private investment and will provide flexibility to business and industry. However, labour law experts believes that such changes in labour laws will lead to dilution of worker rights and pave the way for exploitation of workers. Reforms in labour laws alone is not sufficient to bring in investment.

    This brings to us the question of labour law reforms brought by several states in India and whether this could bring investment in the states. In this article we will discuss the following:

    • What are the steps taken by states?
    • What are the Arguments given by states to dilute labour laws?
    • What are the issues pertaining to dilution of labour laws?
    • Why labour law reforms alone will not bring investment?
    • Conclusion
    What are the steps taken by states?

    In total 9 states have brought changes in the labour laws which include, Uttar Pradesh, Madhya Pradesh, Gujarat, Rajasthan, Goa, Himachal Pradesh, Assam, Punjab and Odisha. Changes by some of the states are given below:

    • The Uttar Pradeshgovernment has cleared an ordinance, ‘Uttar Pradesh Temporary Exemption from Certain Labour Laws Ordinance, 2020’,  exempting businesses and industries from labour laws, for the next three years to increase industrial activities in the state.
    • The Gujarat government announced exemption from a certain labour laws for 1,200 days to the firms that want to set up new units in the state in order to boost economic activities.
    • Madhya Pradesh government has announced several reforms in labour laws. As per the new laws, registrations and licences under different labour laws will be issued in a day versus the earlier 30 days, renewal of factory licence will be for 10 years instead of one year now.
    What are the Arguments given by states to dilute labour laws?
    • Complexity in India’s labour law regime: Under the Constitution of India, Labour is a subject in the Concurrent List where both the Central & State Governments enacts laws. As a result, there are more than 40 central labour laws and about 200 state enacted laws. There are numerous overlapping, rigid and isolated acts, which are applicable to firms at any point of time. Lifting of these labour laws, will relieve the industry from cumbersome regulatory compliances. It will also provide relief to industries from red tapism and rent seeking of labour inspector.
    • Huge informal sector: More than 90% of the workforce in India is working as informal labor, and thus are not protected by these labour laws.Further, with the rise in competition in the economy, flexibilization of work has occurred, resulting in gig economy.
    • Providing Employment – Reverse migration of labour from industrialized states back to their homelands due to lockdown is expected to create a glut of labour in the parent state. The states argue that relaxing labour laws is expected to encourage local industry to hire more and thus provide a large number of new jobs to these migrant labour.
    • To attract MNC’s shifting from China- Relaxing labour laws is intended to provide a positive signal to companies who want to relocate from China. It improves cost of compliance and provides an opportunity to attract MNCs and investment in the manufacturing sector.
    • Suspension is temporary: The state says that suspension of some of the labour laws are temporary in nature. For example in UP, suspension is for three years.
    • Applicability of laws: The applicability of various labour laws differs. For example, the Factories Act, 1948 is applicable to a factory with 10 or more workers, the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 (EPF Act) is applicable to establishments with 20 or more employees, the Minimum Wages Act, 1948 is applicable to all establishments and so on. Such different provisions are a cause of confusion for the businesses and thus creates problem.
    • Trade Unions: Frequent strikes by trade unions hamper the productivity and efficiency of the industries. These frequent strikes bring down the confidence of investors to invest in India.
    • Rigid laws: The Indian labour laws such as Industrial Disputes Act, 1947 are too rigid in nature. Some of the provisions of the act states that employers can not hire and fire at will. It leads to further disincentive to private investment.
    • Entry and exit Barriers for firms:According to the Economic Survey 2015-16, most of the private companies/industries enter into the market easily. Despite the low productivity, industries are given limited exit options that hamper the economic growth. 
    What are the issues pertaining to dilution of labour laws?
    • Might increases worker agitation and activism:Many of the labour reforms in India are a result of prolonged struggle of the labour class against the suppression and exploitation prevailed since the British era. Thus the dilution of these hard-earned changes may spark resentment leading to increased worker agitation and activism.
    • Minimum wages: The changes made by Uttar Pradesh government include the suspension of Minimum Wages Act, 1948. This will take away the statutory guarantee of minimum wages to the workers.
    • Statutory Protections:The statutory protection such as social security, right to form unions etc provided bargaining powers to the workers. The dilution of the laws will take away the bargaining power of workers and this would lead to exploitation of working class.
    • Further increase in informal sector: The dilution of these labour laws will further increase the gig economy with workers having no access to social security and other benefits.
    • Complete removal of labour reform is unwarranted –The major issues in the labour laws pertains to provisions for lay-offs, retrenchment and closure and the administrative implementation of labour laws. Hence wholesale removal of so many labour laws is unnecessary.
    • Labour Laws and Employment –There is limited evidence that relaxing labour laws alone will increase employment. Labour law reforms must be accompanied by structural reforms for the generation of unemployment.
    • Economic Recovery:– India’s current economic slowdown is especially due to slump in private demand. With the relaxation in labour laws, wages may be lowered and thus private demand may further decline, especially in rural areas. This further makes economic recovery difficult.

    After discussing the issues of the labour laws in India and the issues pertaining to the dilution of these labour laws, let us discuss as to why these reforms alone will not bring investment in India.

    Why labour law reforms alone will not bring investment?

    According to WEF’s Global Competitiveness Index, India ranks 58th out of 140 countries and it ranks 33rd on the flexibility of labour markets. While China ranks 28th in overall ranking and 62nd on labour markets. It clearly shows that lack of competitive labour markets is not the main factor driving India’s poor competitiveness. Also, there is little evidence that relaxing labour laws alone will attract overseas investment.

    Thus, there is need for India to opt for other structural reforms along with labour laws reforms. Some of the reforms suggested below are:

    • Infrastructure: Infrastructure is the backbone of the economy. But in India, various infrastructural projects like roads, power projects etc faces various constraints such as, land acquisition, delays in environment and forest clearances, funding issues etc. the government should try to minimize these constraints and thereby promote infrastructural development.
    • Ease of Doing Business: Though India’s ranking in Ease of Doing Business ranking (73rdin 2020) has improved, but India still lags in areas such as enforcing contracts (163rd) and registering property (154th). So the government should focus on these parameters and to further promote Ease of Doing Business in India.
    • Employment:To the drive the economy on a sustainable path, the government should focus on strengthening:
    • Apprentice and vocational training system
    • Quality of our school education

    The government should focus on streaming high-school youth into the vocational path to improving the quality and relevance of vocational education, and also creating an apprentice supply chain from these institutes into the workforce.

    • Banking Reforms: Present banking system in India is facing several problems like twin balance-sheet syndrome, governance issues. So the government should implement P.J Nayak committee recommendations like streamlining of board level appointment process, development of effective risk management systems, and creation of a pool of independent directors. The government should also take measures to bring down the NPAs.
    • Agricultural Reforms:
    • For decades, Indian governments have largely failed in their attempt to improve agricultural productivity and provide alternative occupational paths for rural households.
    • The government must focus on structural fixes that include access to better seeds and technology, drip irrigation and crop planning for the farmer, an easier path from farms to markets for products, a steadier offtake of farm products and a reduction in middleman costs.
    • Industrial Reform:Despite the economic reforms of 1991, the improvements in the manufacturing sector were minimal. So the government should focus on the initiatives like Make in India, Stand-Up and Start-Up India to promote manufacturing growth and innovation in India.
    • MSMEs Sector:MSMEs are vital to the economy as they are the innovators, job-creators and risk-takers. Government of India launched many schemes to promote MSMEs like TReDS, Credit Guarantee trust for medium and small entrepreneurs (CGTMSE). Government should take further measures like timely credit and low tax compliance to promote MSME sector.
     Conclusion

    Labour Law is adapted to the economic and social challenges of the India. It establishes a legal system that facilitates productive individual and collective employment relationships and therefore a productive economy. However, the changes brought by the states are not sufficient alone to improve the industrial activities. India at present needs to focus on the structural reforms as suggested above.

    Source: Are labour law reforms the panacea to the investment problem?

     Mains Practice Question:

     The labour laws are much more needed in the present time to ward off the humanitarian crisis of lockdown. Critically analyse the statement in light of relaxation of labour laws by various states . (250 words)

  • 7 PM Editorial |Financial Inclusion and Digital India: A Critical Assessment| 11th May 2020

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    Financial Inclusion and Digital India: A Critical Assessment

    What has happened?

    The Reserve Bank of India (RBI) has unveiled a National Strategy for Financial Inclusion 2019-24 in January 2020. It is aimed at providing access to formal financial services in an affordable manner to reduce poverty and create jobs. It also aims to promote financial literacy among customers.

    Financial inclusion is one of the cornerstones of a developing economy. Though there has been improvement in digital transactions in the country, there are still issues of dormant accounts, last-mile connectivity of banks and other financial institutions.

    This brings to questions of financial inclusion in India. In this article we will discuss the following:

    • What is financial inclusion?
    • Why there is need for financial inclusion?
    • What the steps taken by government to increase financial inclusion?
    • The success story
    • What are the challenges associated?
    • Way forward
    • Conclusion
    What is financial inclusion?
    • According to World Bank, “financial inclusion means that individuals and businesses have access to useful and affordable financial products and services that meet their needs such as transactions, payments, savings, credit and insurance; and delivered in a responsible and sustainable way”.
    • In other words, financial inclusion means connecting marginalized and the underprivileged in the mainstream economy, by providing financial literacy and access to banking and financial services.
    • The main intention of providing the access of financial resources to the underprivileged and marginalized is to improve their lives.It has also been observed that financial inclusion has the potential to reduce poverty and create job.
    Why there is need for financial inclusion?
    • Financial Exclusion: According to a World Bank’s report in 2017, about half of India’s population is financially excluded.
    • Financial Illiteracy:Also, according to a survey conducted by Standard & Poor’s Financial Services (S&P), only 24% adults in India are financially literate.
    • Critical part of the development process:Successive governments, private institutions and the civil society have altogether helped in increasing the financial-inclusion net in the country since independence. There has been an emphasis to provide last-mile connectivity of banks and other financial institutions.
    • Lack of Inclusive Growth: The lack of inclusive growth due to inequalities in economic and social factors, mostly translate into inequalities in terms of opportunities. This further lead to huge disparities in the health and education sectors.
    What the steps taken by government to increase financial inclusion?
    • Using the institutions like the Reserve Bank of India (RBI) and National Bank for Agriculture and Rural Development (NABARD) promote financial inclusion. Both the institutions have promoted financial inclusion by:
    • opening bank branches in remote areas,
    • issuing Kisan Credit Cards (KCC)
    • using information technology to spread awareness and literacy,
    • linkage of self-help groups (SHGs) with banks,
    • increasing the number of automated teller machines (ATMs)
    • increasing the number of business correspondents,
    • increasing credit facilities
    • increasing insurance covers for the marginalised people
    • Pradhan Mantri Jan Dhan Yojana (PMJDY):
    • It was launched in 2015 with the objective of providing zero-balance bank accounts to every individual above 10 years of age.
    • As per the estimates of Ministry of Finance, in March 2020, the total number of beneficiaries of the programme has been more than 380 million.
    • Jan Dhan–Aadhaar–Mobile (JAM) trinty:
    • The JAM trinity has a positive impact on the banking sector and financial inclusion.
    • The zero-balance Jan Dhan accounts are linked to Aadhaar numbers of the individuals. These are then linked to the Direct Benefit Transfer (DBT) scheme.
    • The use of JAM trinity has made significant improvements in targeted and accurate payments. This has helped in removing duplication of entries and bringing down the reliance on cash mode of payments.
    • Promotion to Digital Payments:
    • Digital India initiative has brought changes in terms of payment facilities available to the underprivileged sections.
    • KCC, General credit cards (GCC) and mobile banking facilities have encouraged the poor to participate in the digital ecosystem.
    • Digital payments have been made secure by the introduction of Unified Payment Interface (UPI) by RBI.
    • The payment system has been made more accessible by offline transaction-enabling platforms, like Unstructured Supplementary Service Data (USSD). USSD makes it possible to use mobile banking services without internet and even on a basic mobile handset.
    • The Aadhar-enabled payment system (AEPS) enables an Aadhar enabled bank account (AEBA) to be used at any place and at any time by using micro ATMs.
    • Implementation of Goods & Service Tax (GST):
    • The small and medium scale enterprises (SMEs) have come under the ambit of financial inclusion by the reforms brought by the GST platform.
    • The GST has enabled electronic filling and monitoring system. This helps in pre-filling of information and integration of database. This reduces the compliance burden of assesses and motivates them to be a part of formal financial system.
    • Project Financial Literacy: The RBI initiated Project Financial Literacy to promote financial inclusion by engaging business correspondents to provide banking services to the poor.

    After discussing the initiatives of government regarding financial inclusion, let us look towards the success story of these initiatives and challenges associated.

    The success story:

    The success of Digital India and financial inclusion can be measured by the growth in digital transactions, the proportion of the poor and their ability to access banking facilities.

    • According to the World Bank’s Global Findex report (2017), 80% Indian adults have a bank account. It is 27 points higher than the 53% estimated in the Findex 2014 report. The Findex 2017 report also estimates that 77% Indian women have bank accounts as against 43% and 26% respectively in 2014 and 2011.
    • As per another World Bank report, the total volume of digital transactions in India grew by compound annual growth rate (CAGR) of 30% between 2015 and 2017.
    • The mobile banking transactions grew more than five times, from 19.75 million in April 2015 to 106.18 million in April 2017.
    • Similarly according to the data of RBI (2020), mobile wallet transactions grew from 11.96 million transactions in April 2015 to 387.6 million transactions which worth Rs 15,408 crore in January 2020.
    What are the challenges associated?
    • Lack of access to bank accounts:Despite all the initiatives, India is still behind in providing universal access to bank accounts to its citizens. According to the Findex 2017 report, about 190 million adults in India do not have a bank account. This makes India the world’s second largest nation in terms of unbanked population after China.
    • Digital divide: The low-income consumers are still left out of the process of financial inclusion because of the digital divide prevalent in India.
    • Poors or low-income consumers are unable to afford the technology required to access digital services.
    • There is non-availability of suitable financial products,
    • There is lack of skills among the stakeholders to use digital services,
    • There are infrastructural issues
    • Implementation flaws:
    • Another challenge to digital financial inclusion arises from the attitude of the stakeholders. For instance Jan Dhan scheme has resulted in the opening of many dormant accounts which never saw actual banking transactions.
    • All such activities incur huge operative costs and are only proved to be detrimental to the actual objective.
    • Cash dominated and informal economy:
    • Indian economy is heavily dominated by cash. The data from RBI reveals that cash circulation has increased in 2018 after demonetisation.
    • Also, according to International Labour Organization (ILO), about 81% of the employed persons in India work in the informal sector.
    • This combination of informal sector and high dependence on cash mode of transaction poses an obstacle to digital financial inclusion.
    • Gender disparities and Socio-economic factors:
    • According to the 2017 Global Findex database, 83% of males in India held accounts at a financial institution in 2017 compared to 77% females.
    • This is further attributed to socio-economic factors such as the availability of mobile handset and internet data facility are being available to men more than women.
    Way forward 
    • Target Based Approach:Financial inclusion policies are generally targeted towards specific sectors like MSME, Agriculture or specific regions like Aspirational Districts. It is important to develop sector specific action plans and monitor targets and review the progress.
    • Regulatory Framework:There should be a strong regulatory and legal framework aimed at protecting the interests of the customers, promoting fair practices and curbing market manipulations.
    • Market Development:The process of market development can be in the form of
    • expansion of rural networks and access points;
    • allowing preferential prudential rules to encourage lending to rural areas
    • setting up special sub-branches in rural areas;
    • digitising large-scale payment streams like pension, insurance, and subsidies for rural households etc.
    • Strengthening Infrastructure:
    • Development of an ecosystem with requisite infrastructure, including credit infrastructure, receipt and payment infrastructure etc., are essential.
    • Providing a national level identification, setting up a credit registry database, creation of open and inclusive payment systems are some of the key steps in this direction.
    Conclusion

    Financial inclusion is increasingly being recognized as a key driver of economic growth and poverty alleviation the world over. Access to formal finance can boost job creation, reduce vulnerability to economic shocks and increase investments in human capital. Without adequate access to formal financial services, individuals and firms need to rely on their own limited resources or rely on costly informal sources of finance to meet their financial needs and pursue growth opportunities. At a macro level, greater financial inclusion can support sustainable and inclusive socio-economic growth for all.

    India thus needs a multidimensional approach through which existing digital platforms, infrastructure, human resources and policy frameworks are strengthened. More importantly, human resources need to be leveraged by skilling and positively engaging with them to achieve the last-mile connectivity of financial institutions.

    Source: Financial Inclusion and Digital India: A Critical Assessment

    Mains Practice Question:

     “In a diverse country like India, financial inclusion is a critical part of the development process. However, as per the World Bank, about half of India’s population is financially excluded.” What are the steps taken by the government and the challenges faced in promotion of financial inclusion? (250 words)

  • 7 PM Editorial |Why Only Filling Judicial Vacancies Won’t Decrease Pendency| 29th April 2020

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    Why Only Filling Judicial Vacancies Won’t Decrease Pendency

    What has happened? Judicial reforms in India till now have talked majorly about supply side solutions like more judges and more funds for the courts. But there are several issues in Indian judiciary apart from judicial vacancies, which demands comprehensive judicial reforms in the country.

    The Indian judicial system is plagued with problems of delay and backlog. The consequence of such high pendency of cases is erosion of faith in institution of judiciary. But there is more to judicial reforms than only filling up the judicial vacancies

    This brings us to the question of what other issues are there in our judicial system that needs to be addressed. Therefore, in this article we will discuss the following:

    • What is the need of judicial reforms in India?
    • Why only filling judicial vacancies won’t decrease pendency?
    • What are the steps taken by government?
    • What are the possible solutions?
    • Conclusion

    What is the need of judicial reforms in India?

    The judiciary since its functioning from January 28, 1950 has been the nation’s moral conscience, speaking truth to political power, upholding the rights of citizens, mediating Centre-state conflicts, providing justice to the rich and poor alike, and on several momentous occasions, saving democracy itself.

    Despite its achievements, a gap between the ideal and reality has been becoming clear over the years. Some of the prevailing issues are: 

    • Backlogs of cases:
      • As per Law Minister Ravi Shankar Prasad, More than 43 lakh cases are pending in the 25 high courts in the country and over 8 lakh of these are over a decade old in 2019.
      • The backlogs plaguing our judicial system have gained us disrepute in the international community, too.
      • A prime example is the investment arbitration award in the case of White Industries v. Republic of India. An ICC Tribunal found that the Indian Supreme Court’s inability to hear an Australian investor’s appeal for over 5 years amounted to a breach of India’s obligation to provide investors with effective means to enforce their rights under the India-Australia Bilateral Investment Treaty. India was asked to pay a hefty sum of AUS$4.85 million to White Industries.
    • Disproportionate vacancies in some states:
      • As per the Department Related Standing Committee Report, released in March this year, the current sanctioned strength for the District Judiciary across the country is 24,018. Out of these, 5,146 (around 21%) posts of judicial officers are lying vacant.
      • Five states are struggling more than others when it comes to recruiting judges. Vacancy in the district judiciary is highest in Uttar Pradesh(1053), Bihar (776), Madhya Pradesh (370), Gujarat (308) and Rajasthan (309).
    • Vacancies not limited to District Judiciary:
      • As per the Standing Committee’s Report, 397 out of 1079 sanctioned posts lie vacant in various High Courts in the country. This amounts to almost 37%vacancy in High Courts – higher than the vacancy percentage of 21% in the District Judiciary.
      • Out of the 397 vacancies, recommendations for 206 posts have been sent by the High Courts, but the recommendations are still being processed between the Government and the Supreme Court Collegium.
    • Gap between policy and practice:
      • The Supreme Court has endorsed the methodology of the National Court Management Systems (NCMS)committee for calculating judge strength. But in practice, High Courts follow different methodologies. Only two out of the 18 High Courts are using the NCMS methodology for calculation of judge strength. This shows there exists a gap between the policy debates at the Centre and the actual manner in which the court administration calculates the number of judicial posts needed across all tiers and cadres.
    • No measure to check productivity of judges:
      • The National Judicial Data Grid (NJDG)system, which was created with the objective of improving judicial productivity qualitatively and quantitatively, is not collecting granular, relevant data from courts to determine performance indicators.
      • Meaningful data in this regard would include time spent by judges on different case types and at different stages during the trial process.
    • Inexperience of trial court judges:
      • A recent report by think tank Vidhi Centre for Legal Policy claimed that Civil judges and judicial magistrates in India are too young and consequently they lack “significant life experiences”.
      • The average age of new judges who are being appointed as Civil Judges and Judicial Magistrates is between 26-27 years except in Kerala where the average age is 33 years. Such candidates have little to no experience at the bar and also unlikely to have significant life experiences.

    Why only filling judicial vacancies won’t decrease pendency?

    The conversation on judicial reforms in India so far has focused on supply side solutions like more judges and more funds for the courts. Reforms in the past have been made with a limited understanding of judicial vacancies and have ignored factors such as higher vacancies in some states and differences in the method used for calculating judge strength.

    What are the steps taken by government?

    • National Mission for Justice Delivery and Legal Reformswas set up with the twin objectives of increasing access by reducing delays and arrears in the system and enhancing accountability through structural changes and by setting performance standards and capacities.
      • The Mission has been pursuing a coordinated approach for phased liquidation of arrears and pendency in judicial administration which, inter-alia, involves better infrastructure for courts including computerization, increase in manpower strength of judiciary, suggesting policy and legislative measures in the areas prone to excessive litigation, recommending re-engineering of court procedure for quick disposal of cases and emphasis on human resource development.
    • The National Judicial Academy (NJA)has made changes in delivery of training programs in the Academic Year 2015-16 to inculcate better use of technology among Judges in a stress free environment.
      • A session on library reading and computer skills has been introduced for one hour each every day after technical sessions are over. Further, management and psychology disciplines to resolve disputes, conflicts, differences with peers and other stakeholders in the justice system have been introduced.
    • The central assistance is provided to the State Governments / UT Administrations under the centrally Sponsored Scheme (CSS) for development of Infrastructure Facilities for Judiciaryfor construction of court halls and residential units for Judicial Officers / Judges of District and Subordinate Courts. The funds sharing pattern for Centre and State is 60:40 in respect of States other than North Eastern and Himalayan States (which is 90:10).
      • An on-line monitoring system will be set up by the Department of Justice enabling data collection on progress, completion of court halls and residential units under construction as well as better asset management.
    • Scheme on Fast Track Special Courts (FTSCs)for expeditious disposal of cases of rape and Protection of Children against Sexual Offences (POSCO) Act.
      • The scheme of Department of Justice aims at effective implementation of Criminal Law Amendment Act, 2018 by ensuring targeted disposal of pending rape & POCSO Act cases.
      • A total of 1023 FTSCs will be set up under the Scheme out of which 389 FTSCs will exclusively handle POCSO Act case.

    What are the possible solutions?

    • Creation of All-India Judicial Service (AIJS):
      • The competence and quality of judges in trial courts is critical for the integrity and credibility of the whole justice system.  Therefore there is a strong case for creation of an All-India Judicial Service, in line with the All-India Services.
      • Article 312of the Constitution provides for the creation of an All–India Judicial Service (AIJS) common to the Union and the States.  Such a service can be created and regulated by the Parliament by law, provided that the Council of States has declared by resolution supported by not less than two-thirds of the members present and voting that it is necessary or expedient in the national interest to do so.
    • Using bottom-up approach: Improve the district courts.
      • A high-level team must visit each district court to ascertain what is lacking in terms of infrastructure and facilities. It would surprise many to know that many court halls and rooms for the registry have not been whitewashed for several years. Broken windows, chairs, shelves can be found across most.
      • Discussions must also be held with district court judges to appreciate the bottlenecks they encounter in their day-to-day functioning and to understand their needs with a view to ease their high-pressure assignment.
    • Case and court management must be embedded in the justice delivery system:
      • Case management is a comprehensive system of management of time and events in a law suit as it proceeds through the justice system, from initiation to resolution. Here, the court sets a timetable for the case and the judge actively monitors progress.
      • The Singapore judiciary has successfully implemented case management, and today its achievements are recognized across the world.
    • The Law Commission of Indiain its 230th report has also offered a long list of measures to deal with the pendency of cases.
      • These include providing strict guidelines for the grant of adjournments, curtailing vacation time in the higher judiciary, reducing the time for oral arguments unless the case involves a complicated question of law, and framing clear and decisive judgments to avoid further litigation.
      • In addition, the courts should also seriously consider incorporating technology into the system; digitizing courts records has been a good start in this context but a lot more can be done. For example, just like automation powered by Artificial Intelligence is already helping doctors, it can also be leveraged to assist judges and lawyers.
    • The court administration, in-charge of computing judge strength, should be trained to use data management tools efficiently so that they apply the method best suited for computation of judge strength.
    • All judicial reforms should be based on strong empirical foundations. Given the volume of administrative functions, a possible alternative can be outsourcing functions such as calculation of judge strength, which require rigorous statistical skills, to private experts.
    • The NJDG (National Judicial Data Grid)which has been developed as part of the e-courts project, needs to collect better data which can assist in computation of judge strength. It should be able to measure judicial hours spent on different case types and at each stage of court processes.
    • Expanding local courts all over the country, especially in urban areas, we can create an acceptable, simple mechanism for ensuring speedy justice in cases of ill-treatment of women, as well as many simple civil and criminal cases. For instance, if a person is held guilty of eve-teasing or harassment in a bus or train, the trial in a local court can be completed within days, and the person, in case of first offence can be imposed a fine and the conviction can be entered in his academic and employment record, with the condition that the entries can be deleted by the court after three years of good conduct.

    Conclusion

    Timely selection of judges and courts working at full strength will undoubtedly help improve the speed of justice delivery in the country if it also addresses the systemic issues in the ecosystem. Hence filing the vacant seats is not the only solution for judiciary to function efficiently. The mission shall ensure that the Indian judicial system will not only be known for the eloquence of its substantive judgments but also because of its ability to deliver justice quickly, independently and in a manner that keeps the faith of the public intact.

    Source: Vidhi Centre for Legal Policy

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