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Front Page / NATIONAL(The Hindu)
- Cash exchange limit cut, PAN mandatory for new accounts
- India hopes Bhutan will ratify vehicles pact
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Editorial/Opinion(The Hindu)
- After the storm
- A chance to re-calibrate ties
- Reaching the new normal
- Time to move towards a new litigation policy
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Economy (The Hindu)
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Live Mint
- What the government and the media didn’t say about air pollution in your city
- Electoral reforms need to follow currency swap
- Of warfare, tech and innovation
Click here to Download 9 PM Daily Brief PDF (18th November 2016)
Pront Page / Nation(The Hindu)
[1]Cash exchange limit cut, PAN mandatory for new accounts
Context
All new bank accounts, except those opened under the Jan Dhan Yojana, and time deposits in banks, post offices and co-operative banks will now require a PAN card.
Respite for few
Up to Rs. 2.5 lakh each can be withdrawn by the prospective bride and groom’s family for their wedding expenses and farmers can withdraw up to Rs. 25,000 a week
Limit reduced
Centre reduced the exchange limit for old notes to Rs. 2,000 from the Rs. 4,500 earlier
Cash at petrol pumps
Debit card holders can now withdraw up to Rs. 2,000 from their accounts by swiping their cards at select petrol pumps with SBI POS devices, following a tie-up between public sector oil marketing companies and the bank.
Relief for traders
The Finance Ministry allowed traders registered with agricultural produce markets to withdraw up to Rs. 50,000 a week from banks, while farmers were given 15 more days to pay crop insurance premium.
[2] India hopes Bhutan will ratify vehicles pact
Context
Bhutan’s National Council’s (upper house) has decided not to ratify the ‘Motor Vehicles Agreement’ (MVA), defeating the government’s proposition 13 votes to 2
What is BBIN?
The Bangladesh, Bhutan, India, Nepal (BBIN) Initiative is a sub-regional grouping of countries in South Asia.
- It meets through official representation of member states to formulate, implement and review agreements across areas such as water resources management, connectivity of power, transport, and infrastructure
BBIN Motor Vehicle Agreement
India proposed a SAARC Motor Vehicle Agreement during the SAARC Summit in Kathmandu in November 2014. Due to objections from Pakistan, as a consequence of which a land-locked Afghanistan could also not join the MVA, an agreement could not be reached. India instead pursued a similar motor vehicle agreement with the BBIN
- The Bangladesh-Bhutan-India-Nepal Motor Vehicles Agreement was signed on 15 June 2015
What is the agreement about?
- The agreement enables vehicles to enter any of the four nations without the need for trans-shipment of goods from one country’s truck to another’s at the border. Under the system, cargo vehicles are tracked electronically, permits are issued online and sent electronically to all land ports. Vehicles are fitted with an electronic seal that alerts regulators every time the container door is opened
- Apart from reducing shipping routes by 1,000 km, the BBIN grouping is also seen as India’s way of countering Pakistan in the SAARC grouping
Present situation
MVA signed by: Bangladesh, Bhutan, Nepal India
MVA ratified by: Bangladesh, Nepal, India
Environmental concerns
The lower house or National assembly of Bhutan had passed the bill and sent it to National Council or upper house, where it faced opposition due to,
- Environmental concerns because of increased pollution caused by larger vehicular movement
Editorial/opinion(The Hindu)
[1] After the storm
Context
Much of India’s economic activity still takes place in the informal sector with no cheque
payments, resulting not just in widespread direct and indirect tax evasion but also an inability to assess the true state of the economy.
Article provides an overview of the aftermath of the demonetization move of the government. Demonetization will be covered as a separate topic.
Give it a go through once.
[2] A chance to re-calibrate ties
Context
The 2003 ceasefire on the Line of Control has clearly now ceased to hold, with daily exchange of fire between Indian and Pakistani soldiers.
Article highlights the deteriorating bilateral ties b/w India and Pakistan & mentions about the Heart of Asia conference (HoA) to be held in Amritsar in December.
HoA has already been discussed in the brief dated 16th November 2016
Give it a go through once.
[3] Reaching the new normal
Context
President Pranab Mukherjee’s visit to Nepal has helped restore equilibrium to bilateral ties.
Article is a commentary on the recent visit by Indian president to Nepal, a first in 18 years. This topic has already been covered in the Brief dated 3rd November 2016
Give it a light read.
[4] Time to move towards a new litigation policy
Context
Besides being a constraint on the public exchequer, government litigation has contributed to judicial backlog, thus affecting justice delivery in India
Topic addressed in the article: Excessive government litigation
Backdrop
On the occasion of the Delhi High Court’s golden jubilee in October 2016, Prime Minister broached (raised) the problem of excessive government litigation.
- The Supreme Court, since the 1970s, has berated (criticize) successive governments for being callous (insensitive) and mechanical in pursuing litigation
- The Law Commission of India also studied this problem in its 126th Report in 1988, and made appropriate observations on this front
Litigant: a person involved in a lawsuit (for this article, instead of a person, there is government)
No source
There is no source through which the extent of government litigation can be gauged. This also indicates the intent or seriousness of the government in tackling the issue of litigation excess because without any idea of the extent of the problem it cannot possibly be addressed.
National Litigation Policy (NLP), 2010
Launched in: 2010
Purpose: to transform the government into an efficient and responsible litigant
- At global level, Australia has a set of litigation guidelines for the government to act as a model litigant
Why has NLP failed?
- Ambiguity: No concrete implementation mechanisms have been listed out in the policy
- Fails to provide any yardstick for measuring efficiency and responsibility: The policy idealistically states that there should be greater accountability regarding governmental litigation, and mandates “suitable action” against officials violating this policy. However, the text does not define this “suitable action”, or prescribe any method to conduct any disciplinary proceedings
- Lack of transparency: NLP mandated the creation of “Empowered committees” at the national and regional levels, apparently to regulate the implementation of the policy. But there is ambiguity about their role and powers, resulting in lack of transparency in their functioning
- Lack of impact assessment: Without any monitoring mechanism to gauge data, there is no way the actual impact of the policy in reducing the government litigation could be known.
The way forward
NLP is undergoing revision but author says that it still has the same problem. There have been no prior studies to understand the actual extent of the problem of government litigation. Without such data, any policy would be based on just rhetoric and anecdotal notions.
Critical points
Author states that the ongoing revision of the NLP needs to ensure certain critical features are not missed out:
- It must have clear objectives that can be assessed
- The role of different functionaries must be enumerated
- The minimum standards for pursuing litigation must be listed out
- Fair accountability mechanisms must be established
- The consequences for violation of the policy must be provided
- A periodic impact assessment programme must be factored in.
Conclusion
Author concludes by stating the a profound litigation policy can help curb the problem of excessive litigation but only if it is based on sound evidence rather than pure conjecture (an opinion or conclusion formed on the basis of incomplete information).
Economy(The Hindu)
[1] Israel seeks FTA with India to boost trade
Context
Israeli President Reuven Rivlin pitched for a bilateral free trade agreement with India and Israel wishes to partner in India’s ‘Clean Ganga’ project and solar energy sector.
India-Israel Economic Forum: Innovative Partnership
Addressing the forum he implored business leaders from both the countries to work together to create a stronger market in both countries
Areas where Israel can help India
- Water and waste water management: Israel has evolved technology solutions to meeting its water needs & its waste water management know-how could be of immense use for India
- Optics, metals, aviation, diamonds and textiles.
[2] India is ‘non-committal’ on market economy tag for China
Context
India is not inclined to automatically grant the coveted ‘Market Economy Status’ (MES) to China this December under World Trade Organisation (WTO) norms.
What is a market economy?
As per Investopedia,
“A market economy is an economic system in which economic decisions and the pricing of goods and services are guided solely by the aggregate interactions of a country’s individual citizens and businesses. There is little government intervention or central planning”
Global & Indian stance
India has supported the U.S. and European Union in their view that unlike in ‘market economies’ where prices of items are market determined (based on demand & supply conditions), there is still a significant government influence in the Chinese market.
- Of the 535 cases where anti-dumping duties were imposed by India during 1994 to 2014, a maximum of 134 has been on goods from China
Factors causing global trade distortions that exist in Chinese market
- Chinese government subsidies for various sectors
- Currency ‘manipulation’ and the related ‘price fixing’
- Absence of transparency in lending rates and bad loans of banks as well as in minimum wages & property rights
- Lack of proper business accounting standards
China’s stance
Citing the provisions in the ‘Protocol on the accession of China to the WTO’ in 2001, Beijing has said WTO member countries must fulfil their promise to deem China a ‘market economy’ from December 2016.
Concern and support
Several nations that have a strong manufacturing base are concerned about according MES to China, while nations including in Africa and Latin America — dependant on Chinese investments to boost manufacturing — are inclined to grant Market Economy Status to China.
What if China is granted MES status?
Granting MES to China will severely curb the ability of nations including India to impose anti-dumping duties on “unfairly priced” Chinese imports.
Live Mint
[1] What the government and the media didn’t say about air pollution in your city
Live Mint
Context
Can we tackle pollution with the same seriousness as black money or corruption?
Article highlights the pollution levels that might have improve but are still hovering in hazardous category in Delhi.
Give it a go through once.
[2] Electoral reforms need to follow currency swap
Context
Author states that the current demonetization move is unlikely to stem the flow of illegal electoral financing. Why he thinks so? Read on to find out.
Estimated aggregated cost of Indian state and central elections: Under $5 Billion
Currency swap can disrupt the electoral finance but two caveats need to be considered,
- Extent of its disruption, which is debatable because political parties will find ways to channel illegal funds into elections anyhow
- Electoral finance is linked with various industries and sectors like real estate
Lack of political will
Author states that there is a lack of political will to act on the recommendations of the reports like,
- Goswami Committee on Electoral Reforms (1990)
- Election Commission of India’s (ECI) seminal 2004 report
- Proposed Electoral Reforms
- 2ndAdministrative Reforms Commission, 2008
Limiting expenditure
Author states that the limited expenditure allowed in elections, itself gives rise to illegal electoral financing. Owing to its size and diversity there will always be huge cash involved
Kanwar Lal Gupta vs Amar Nath Chawla, 1974
Author has cited this SC judgement wherein SC had supported a limit on electoral expenditure. SC said “The other objective of limiting expenditure is to eliminate, as far as possible, the influence of big money in electoral process. If there were no limit on expenditure… the largest contributions would be from the rich and the affluent…”
Suggestions
- Author suggests that until the issue of spending limits is revised it is better to abolish the limit on electoral expenditure or raise it
- Broadening of disclosure norms
- Arming Election Commission of India to act against those who do not comply with its disclosure guidelines
- Public access to the disclosures filed by candidates
[3] Of warfare, tech and innovation
Context
Authors have tried to make a case for a new opportunity that has presented itself to India, that of a private defence industry.
Backdrop
Article states that at global level many innovations can be directly attributed to defence-technology co-operation like
- GPS which was initially designed for missile guidance system (USA)
- The Internet, sensor technology, drones, 3D printing, driverless cars, and Apple’s voice-recognition technology—all have roots in department of defence funds (USA)
- Israel a global name in cybersecurity was able to do so because of military’s role
- World’s largest supercomputer now resides in China’s military university
What advantages do India have?
India, has two distinct advantages which can help it capitalize on this new opportunity,
- The changing character of warfare: Warfare, now, increasingly is being fought off the ground and through information. This information retrieval will be done by network of networks thus providing military with actionable data.
Such systems can be used in high risk areas like borderlines. Data & intelligence can be collected and relayed back where it can lower human causalities
- India’s software ecosystem
Funding
Authors say that for funding we are going to need an organization modelled on the US Defense Advanced Research Projects Agency that will identify and fund frontier defence technology research the opposite of the current DRDO model
- This agency will identify 10 universities and 10 private-sector entities to partner with
Human capital
There is a need to create the board proposed in the 2002 Group of Ministers report with representatives from government, academia and private industry.
- Lateral entry: We also need lateral entry into government as the state’s ability to look ahead at the new frontiers of warfare, technology and military organization needs specialization
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