Upload
others
View
1
Download
0
Embed Size (px)
Citation preview
NEWSMONTHLY NEWS MAGAZINE
WHATSAPPENING?
THE IRON MAN STORYPRIME MINISTER UNVEILS
STATUE OF UNITY IN MEMORY OF SARDAR VALLABHAI PATEL
In India, fake newsa�ects voting behaviourin a big way
SELECTOnly the News That Matter
154Page
35Page
THE HYPER-ACTIVE PILLARHAS THE SUPREME COURT
BECOME HYPER-ACTIVE RECENTLY?94Page
And 25 other stories that matter to a civil service aspirant
www.amritaias.com [email protected] +91 85890 60000
DECEMBER 2018EDITION 5
www.amritaias.com | [email protected] | +91 85890 60000
2
Editor’s MessageThis is not a journalistic venture but an academic one designed to handhold keen and sincere UPSC aspirants. We do not claim this to be yet another surrogate window to the world. We are sure, nevertheless, that you would find this venture novel as well as useful.
www.amritaias.com | [email protected] | +91 85890 60000
3
In This Issue
Sl. No.
Topic GS Paper
Page No.
1 Patents and Innovation in Higher Education Institutions II & III 4
2 Migration and Related Stories in India | & || 12
3 Ease of Doing Business and India ||| 19
4 Section 7 of The RBI Act and Related Issues || & ||| 25
5 India Bhutan Recent Developments || 29
6 Sardar Patel: Unifier of Modern India | 35
7 South Asian Association for Regional Cooperation (SAARC) || 39
8 Public Credit Registry (PCR) ||| 43
9 India’s Nuclear Triad ||| 51
10 India Iran Relations ||| 61
11 MSME: Loan for MSME in 59 Minutes ||| 66
12 Special Status of States || 74
13 Bid to Revive Insurgency in Punjab ||| 78
14 Tragic Encounter of Avni ||| 81
15 Intermediate-Range Nuclear Forces Treaty || 85
16 Cooperative Federalism || 90
17 Judicial Activism: Judges Legislate || 94
18 State-Sponsored Insurance and Ayushman Bharat || 98
19 Strengthening The Election Commission || 102
20 International Tourism Mart: Tourism Industry in India ||| 106
21 Sentinelese Issue and other PVTG Related Issues |, || & |V 112
22 Minimum Wages Act for Domestic Workers and Related Issues of Unorganised Sector Employees
|| 119
23 RCEP and Recent Development: India || 124
24 Water Deficit in India | & ||| 129
25 G20 Summit and its Contemporary Relevance || 135
26 Rural Electrification ||| 140
27 Fake News and Voting Behavior || & |V 154
28 Strengthening of Rupee Against All its Odds ||| 159
www.amritaias.com | [email protected] | +91 85890 60000
4
PATENTS AND INNOVATION IN HIGHER EDUCATION INSTITUTIONS
Context
• IndiawitnessedsignificantchangesinIPRssincetheintroductionoftheNationalIPRPolicyin2016.
• Therewasa32%increaseinthenumberofpatentsgrantedin2017-18comparedtotheearlieryear.
• Whilethedisposalratehasincreased,thefilingrateforpatentshasnotchangedsignificantly.
• In2016-17,thePatentOfficereportedadipof3.2%infilingcomparedtothepreviousfinancialyear.
• Tocreateentrepreneurialuniversities,theUniversityGrantsCommission(UGC)hasaskedalluniversitiesinIndiatosetupIntellectualProperty(IP)Centres.
• ThePatentOfficeincreaseditsworkforcewiththeinclusionofnewexaminersandisonthelookoutformore.
• Thetimelineforfilingresponsestoofficialobjectionsforpatentshasbeenreducedbyhalf.
1
Intellectual Property and Universities
• Patentshelpuniversitiestoimprovetheirranking,establishaninnovationecosystem,incubateknowledge-basedstart-ups,earnadditionalrevenueandmeasureresearchactivity.
• Thenumberofpatentsappliedfor,grantedandcommercialisedbyuniversitiesandinstitutesarefactoredintheNationalInstitutionalRankingFramework(NIRF)rankings.
• ThetoprankedengineeringinstitutesinIndiaarealsotheleadingfilersofpatent.
www.amritaias.com | [email protected] | +91 85890 60000
5
• TheNationalAssessmentandAccreditationCouncilawardsupto24pointstoaninstitutewhichsetsupaninnovationecosystemandhasafacilityforidentifyingandpromotingIPRs.
Need for IP at Universities
• Patentshelpuniversitiestoimprovetheirranking,establishaninnovationecosystem,incubateknowledge-basedstart-ups,earnadditionalrevenueandmeasureresearchactivity
• Thenumberofpatentsappliedfor,grantedandcommercialisedbyuniversitiesandinstitutesisfactoredintheNationalInstitutionalRankingFramework(NIRF)rankings
• Whetherahighereducationalinstitutehasaninnovationecosystemcouldalsohaveabearing,withtheNationalAssessmentandAccreditationCouncil,awardingupto24pointstoaninstitutewhichsetsupaninnovationecosystemandhasafacilityforidentifyingandpromotingIPRs
• TheAllIndiaCouncilforTechnicalEducation(AICTE)modelcurriculumforitsmemberinstitutionslaysemphasisontheneedforIPReducationintechnicalinstitutes
The problem: Dearth of IP professionals
• DespitethepolicypushtohavemoreIP,wesimplydonothaveenoughIPprofessionalsinthecountry.
• TherisingdearthofIPprofessionalsisduetovariousinternationaltreatiesandtradeagreements,alongwiththelegal-centricapproachwherelawschoolsandcollegesaretheonlyinstitutionswhichmandateteachingthesesubjects.
• Indiahasapoorpatentagentdensity,withonlyabout2,000registeredpatentagentscurrentlyinpractice.
• ThelasttimewhenthePatentOfficeconductedthepatentagentexam,in2016,around2,600candidatestookit,apaltrynumberifonelooksattheambitiousgoalssetbytheIPRPolicy.
www.amritaias.com | [email protected] | +91 85890 60000
6
Qualifications for an IP professional: Patent exam
• TheCentralgovernmentconductstheonlycompetitiveexaminationinthecountrytocheckaperson’sproficiencyinIP.
• Thisyear,thegovernmentconductedthecompetitiveexaminationtotestproficiencyinpatentlaw,atypeofintellectualpropertyright(IPR),afteragapoftwoyears.
• AnyIndiancitizenwithabachelor’sdegreeinscienceortechnologycantaketheexamination.
• UponclearingitthepersonisentitledtopractisebeforethePatentOfficeasaregisteredpatentagent.
• Qualifyingtheexamallowssciencegraduatestodraft,fileandprocurepatentsfromthePatentOfficeonbehalfofinventors.
Centres in Universities
• Thenewpolicyhaspusheduniversitiestofilemorepatents.
• KindledbythecalltohavemoreIPRs,thehighereducationsectorhaswitnessedmanyreforms.
• TheUGC’scalltouniversitieshascomeafteraseriesofpolicydirectivestointroduceawarenessaboutIPinhighereducationalinstitutions.
• TheAllIndiaCouncilforTechnicalEducation(AICTE)modelcurriculumforitsmemberinstitutionslaysemphasisontheneedforIPReducationintechnicalinstitutes.
• ThelackofIPprofessionalstoteachIPwasoneofthereasonstheinstitutesofhighereducationdonothavethemandatoryIPcourses.
• OnlinecoursesonIPRareavailableontheNationalProgrammeonTechnologyEnhancedLearningplatform.Thoughthousandsregistereveryyear,muchneedstobedonetobuildcapacityonIPinuniversities.
www.amritaias.com | [email protected] | +91 85890 60000
7
• Despitetheinfrequentmannerinwhichtheexaminationhasbeenconducted,theprivatesectordoesgivegoodweightagetotheexaminationasitisconsideredtobethede-factoIPqualificationtoday.
Various international Treaties
• Therearetwomainbodies–WorldIntellectualPropertyOrganization(WIPO)underUNwhichadministers1-7treatiesmentionedbelow.8thtreatyisindependentofanyorganization.AnotherrelevantbodyisWorldTradingOrganization.9th(orTRIPS)isadministeredbyWTO.10thtreatycomesunderUNESCO.
• ParisConventionforIndustrialProperty,1883–SinceitdealsonlywithIndustrialproperty,itcoveredonlyPatentsandTrademarks.ItwasamongfirsttreatiestorecognizevariousprinciplesofinternationaltradelikeNationalTreatment,RightofPriority,Commonrulesetc.
• Bernconventionforliteraryandartisticworks,1886–Itprovidedforcopyrightsystem.Itdoesn’tprovideforanyformalitytoclaimprotection.Protectionisautomaticallyaccordedtoanycreation,providedworkisoriginalandotherconditionsunderthetreatyarefulfilled.Itmeansthatyourwork,iforiginal,isalreadyprotected.Youcanclaimthatyouhavecopyrightoverit.
• MadridAgreement,1881–Governstheinternationalrecognitionoftrademarks.Madeinternationalfillingseasyandcheap.
• Patentco-operationtreaty,1970–Itwasearliernotpossibleforanentitytoclaimprotectionindifferentcountriesbysingleapplication.Thiswasmadepossibleasitaimedforco-operationanditwasopenforallpartiestoParisconvention.
• BudapestTreatyof1980–Itmadepossiblepatentingformicro-organisms.Claimantisrequiredtodeposithisinventiononmicro-organismswithanAuthority–‘InternationaldepositoryofMicro-Organisms’underWIPO.Heshallmakealltheadequatedisclosures.
www.amritaias.com | [email protected] | +91 85890 60000
8
• TrademarkLawTreaty,1994–Harmonizedadministrativeproceduresandintroduced‘servicemarks’inambitoftrademarks.Earliertrademarkswereaccordedonlytogoods.
• TheHagueagreementconcerningtheInternationalDepositof‘IndustrialDesign’1925–ItcreatedtheInternationalDesignBureauofWIPO.
• InternationalUnionforprotectionofnewvarietiesofplants,1961–Thisprovidesbreedersandfarmerstherighttonewplantvarieties.
• AgreementonTradeRelatedAspectsofIntellectualProperty–ItisalandmarkandmostcomprehensivetreatyonIntellectualproperty.Whileearliertreaties’subjectmatterswerespecific,TRIPSdealwith8kindsofpropertyrights–Patents,Trademarks,tradedress,Copyrights,IndustrialDesigns,PlantVarieties,IntegratedCircuitsandlayouts,andGeographicalIndication.Further,almostallcountriesarepartytoTRIP.Inearliertreatiesonlylimitedcountriesparticipated.ItalsoprovidesenforcementmechanismwhichwasnotavailableinWIPOtreaties.ItmandatedallmembercountriestomaketheirdomesticlawscomplainttoTRIPS.Indiapassedcertainlawsandamendedothers.India’sIPRregimenowstandsfullycomplainttoTRIPS.ForE.g.Indiaamendedpatentlawin2005toprovide‘product’patentprotection.Earlierprotectionwasavailableonlyto‘processes’.
• TRIPSwasresultsofdiscussionsheldinUruguayroundwhichledtoformationofWTO.ThistreatyisanoffshootofGeneralAgreementonTradeinGoods(GATT).ThistreatyprovidedarobustDisputeResolutionMechanismandstringentpenalprovisionsundertheauspicesoftheWTO.
Indian laws regarding IPR
• Law–CopyrightsAct1957,amendedin2012.Ministry–CopyrightOffice,MinistryofHumanRecourseDevelopment
• Law–PatentsAct,1970,amendedin2006.Ministry–DIPP,MinistryofCommerceandIndustry
• Law–TrademarkAct1999.Ministry–DIPP,Ministryof
www.amritaias.com | [email protected] | +91 85890 60000
9
CommerceandIndustry
• Law–DesignsAct,2000.Ministry–DIPP,MinistryofCommerceandIndustry
• Law–GeographicalIndicationsofGoodsAct,1999.Ministry–DIPP,MinistryofCommerceandindustry
• Law–ProtectionofPlantvarietiesandfarmers’rightAct,2001.Ministry–DepartmentofAgricultureandCooperation,MinistryofAgriculture
• Law–Semi-conductorsandintegratedLayoutdesignAct,2000.Ministry–DepartmentofElectronicsandITMinistryofCommunicationandIT
• TraditionalKnowledgeDigitalLibrary.OverseenbycollaborationbetweentheCouncilofScientificandIndustrialResearch(CSIR)andtheDepartmentofAyurveda,YogaandNaturopathy,Unani,SiddhaandHomoeopathy(Dept.ofAYUSH),MinistryofHealth&FamilyWelfare,GovernmentofIndia.
• Law–BiologicalDiversityAct,2002inpursuanceofConventiononBiologicalDiversity,1993
Seven objectives of IPR Policy 2016
• IPRAwareness:Tocreatepublicawarenessabouttheeconomic,socialandculturalbenefitsofIPRsamongallsectionsofthesociety.
• GenerationofIPRs:TostimulatethegenerationofIPRs.
• LegalandLegislativeFramework:TohavestrongandeffectiveIPRlaws,whichbalancetheinterestsofrights-ownerswithlargerpublicinterest.
• AdministrationandManagement:Tomodernizeandstrengthenservice-orientedIPRadministration.
• CommercializationofIPRs:GetvalueforIPRsthroughcommercialization.
• EnforcementandAdjudication:Tostrengthenthe
www.amritaias.com | [email protected] | +91 85890 60000
10
enforcementandadjudicatorymechanismsforcombatingIPRinfringements.
• HumanCapitalDevelopment:Tostrengthenandexpandhumanresources,institutionsandcapacitiesforteaching,training,researchandskillbuildinginIPRs.
Way forward
• TheambitiousgoalsetbyIndia’sIPRPolicywillberealisedonlywhentheexaminationbecomesthefoundationformakingacareerinIPR.
• Fine-tuningthepatentagentexaminationtocatertothegrowingIPneedsofthecountrycanbeasuccessfulwaytobuildabandofprofessionalsandcreatecareeropportunities.
• Inadynamicfieldsuchasintellectualproperty,inordertocreateabandofqualifiedIPprofessionals,thereshouldbeapushtowardspost-qualificationcontinuouseducationaswell.
• Toachievethis,theformat,membership,syllabusandthefrequencyofthepatentagentexaminationwillneedtobeaddressed.
• ThiswillnotonlyincreasethenumberandqualityofIPprofessionalsinthecountrybutalsobecomeanewcareerchoiceforgraduateswithadegreeinscienceandtechnology.
• IndiahaswitnessedsignificantchangesinIPRssincetheintroductionoftheNationalIPRPolicyin2016
• Thenewpolicyhaspusheduniversitiestofilemorepatents
• TheambitiousgoalsetbyIndia’sIPRPolicyrestsonhowuniversitiesembracepatents
Conclusion
To be sure, India has declared increasing its gross domesticexpenditureonR&Dto2%ofGDPasanationalgoalintheScience,Technologyand InnovationPolicy2013.But toachieve this, thegovernmentwill have to encouragemore academia - research- industry partnerships, promote inter-disciplinary research and
www.amritaias.com | [email protected] | +91 85890 60000
11
createanationalscientifictemper.
Practice question
I. TheambitiousgoalsetbyIndia’sIPRPolicyrestsonhowuniversitiesembracepatents.CriticallyanalysethestateofinnovationsinIndianhighereducationinstitutes.(200words)
www.amritaias.com | [email protected] | +91 85890 60000
12
MIGRATION AND RELATED STORIES IN INDIA
Context
• Thoughmigrationisexpectedtoenhanceconsumptionandliftfamiliesoutofabsolutepovertyattheorigin,itisnotfreefromdistress.
• Thisdistressisduetounemploymentorunderemploymentinagriculture,naturalcalamities,andinput/outputmarketimperfections.
2
Data Regarding Internal Migration
• AccordingtoWorldPopulationreport33%ofIndianpopulationlivesinurbanareas.
• Economicsurvey2017saysthatinterstatemigrationinIndiaiscloseto9millionannually.
• Accordingto2011censusreporttotalnumberofinternalmigrantsinthecountry(accountingforinter-andintra-statemovement)atastaggering139million.
• UttarPradeshandBihararethebiggestsourcestates,followedcloselybyMadhyaPradesh,Punjab,Rajasthan,Uttarakhand,JammuandKashmirandWestBengal;
• MajordestinationstatesareDelhi,Maharashtra,TamilNadu,Gujarat,AndhraPradeshandKerala.
Factors of internal migration
• Migrationisdrivenbypush-pullfactors.
• Distresshasbeenapushfactorfromruralareas.
• ThedesireforbetteremploymentinurbanareashasbeenapullfactorsininternalmigrationinIndia.
• Datashowthatemployment-seekingistheprincipalreasonformigrationinregionswithoutconflict.
www.amritaias.com | [email protected] | +91 85890 60000
13
The problems of migration
• Atthedestination,amigrant’slackofskillsisamajorhindranceinenteringthelabourmarket.
• Themodernformalurbansectorhasoftennotbeenabletoabsorbthelargenumberofruralworkersenteringtheurbanlabourmarket.
• Thishasledtothegrowthofthe‘urbaninformal’economy,whichismarkedbyhighpovertyandvulnerabilities.
• The‘urbaninformal’economyiswronglyunderstoodincountriessuchasIndiaasatransientphenomenon.
• Ithas,infact,expandedovertheyearsandaccountsforthebulkofurbanemployment.
• Mostjobsintheurbaninformalsectorpaypoorlyandinvolveself-employedworkerswhoturntopettyproductionbecauseoftheirinabilitytofindwagelabour.
• Thentherearevariousformsofdiscriminationwhichdonotallowmigrantstograduatetobetter-payingjobs.
• Migrantworkersearnonlytwo-thirdsofwhatisearnedbynon-migrantworkers,accordingto2014data.
• Further,theyhavetoincuralargecostofmigrationwhichincludesthe‘searchcost’andthehazardofbeingcheated.
• Oftenthesecostsescalateastheyareoutsidethestate-providedhealthcareandeducationsystem;thisforcesthemtoborrowfromemployersinordertomeettheseexpenses.
• Frequentborrowingforcesthemtosellassetstowardsrepaymentoftheirloans.
• Employmentopportunities,thelevelsofincomeearned,andtheworkingconditionsindestinationareasaredeterminedbythemigranthousehold’ssociallocationinhisorhervillage.
• Thedivisionofthelabourmarketbyoccupation,geographyorindustry(labourmarketsegmentation),evenwithintheurbaninformallabourmarket,confinesmigrantstothelowerend.
www.amritaias.com | [email protected] | +91 85890 60000
14
• Often,suchsegmentationreinforcesdifferencesinsocialidentity,andnewformsofdiscriminationemergeinthesesites.
The benefits of migration
• Despitetheseissues,internalmigrationhasresultedintheincreasedwellbeingofhouseholds,especiallyforpeoplewithhigherskills,socialconnectionsandassets.
• Migrantsbelongingtolowercastesandtribeshavealsobroughtinenoughincometoimprovetheeconomicconditionoftheirhouseholdsinruralareasandliftthemoutofpoverty.
• Datashowthatacircularmigrant’searningsaccountforahigherproportionofhouseholdincomeamongthelowercastesandtribes.
• Thishashelpedtoimprovethecreditworthinessofthefamilymembersleftbehind—theycannowobtainloansmoreeasily.
• Thus,thereexistsaneedtoscale-upinterventionsaimedatenhancingthesebenefitsfromcircularortemporarymigration.
• Interventionstargetingshort-termmigrantsalsoneedtorecognisethefactthatshort-termmigrationtourbanareasanditsroleinimprovingrurallivelihoodsisanongoingpartofalong-termeconomicstrategyofthehouseholds.
• LocalinterventionsbyNGOsandprivateentrepreneursalsoneedtoconsiderculturaldimensionsreinforcedbycastehierarchiesandsocialconsequenceswhiletargetingmigrants.
Consequences of migration
• DemographicConsequences:
» Migrationmayhaveprofoundeffectsonthesize,structureandgrowthpatternsofpopulations.
» Migrationhaseffectsonbothpopulationsofthepatternsofpopulations.Migrationhaseffectsonbothpopulationoftheplacesthatpeopleleave&onthepopulationsofthoseinwhichtheysettle.
» Theseeffectsvarywithdifferenttypesofmigration&
www.amritaias.com | [email protected] | +91 85890 60000
15
lengthofmigrantsstayinplaces.
» Theabsenceoflargenumberofeithermenorwomenmayhavealimitedimpactonthesendingsocietyinshorttermbutiftheyareabsentforlongerperiodstimetheirabsencewillhavesignificanteffectsonpopulationgrowthratesinthemediumandlongerterms.
• SocialConsequences:
» Migrationmayhaveimportanceonthecultures&societies.Italsohaseffectsontheculturesofboththeplacesthatmigrantsleaveandthoseinwhichtheyre-settle.
» Theseeffectsvarywithdifferenttypesofmigration,theskillsofthemigrants&thelengthsoftimeinvolved.
• PoliticalConsequences:
» Migrationcanhaveanimpactonpoliticsinboththeplaceswhichpeopleleaveandthosetowhichtheymove.Governmentswillhavetomakepoliciestoattractmigrants,topersuademigrantstoreturn,ortolimitmigrationtoensurethattheyhaveaccesstoskillsthattheyneed.
• EconomicConsequences:
» Migrationcanhavesignificanteffectoneconomics.Migrationhasimpactontheeconomiesthatpeopleleaveandthoseinwhichtheyre-settle.
» Theseeffectsvarywithdifferenttypesofmigration,theskillsofthemigrationandlengthoftimeinvolved.
National policy on internal migration is needed
• Accordingtoastudy,lessthan20%ofurbanmigrantshadprearrangedjobsandnearlytwo-thirdsmanagedtofindjobswithinaweekoftheirentryintothecity.
• Theprobabilityofmovingtoanurbanareawithaprearrangedjobincreaseswithanincreaseineducationlevels.
www.amritaias.com | [email protected] | +91 85890 60000
16
• Accessestoinformationonemploymentavailabilitybeforemigratingalongwithsocialnetworks,tendtoreducetheperiodofunemploymentsignificantly.
• Socialnetworksinthesourceregionnotonlyprovidemigrantswithinformationonemploymentopportunities,butarealsocriticalassocialcapitalinthattheyprovideadegreeoftrust.
• Whilemigrantsinteractwitheachotherbasedonethnicties,suchtiesdissipatewhentheyinteractwithurbanelitestosecureemployment.
• InIndia,whilethebulkofpolicyinterventions,whichthemigrantscouldalsobenefitfrom,aredirectedtowardsenhancinghumandevelopment;someareaimedatprovidingfinancialservices.
• Asgovernmentinterventionsaredirectedtowardspovertyreduction,thereisadearthofdirectinterventionstargetedandfocusedonregions.
• Policiesonthiscouldbetwofold.Thefirstkindcouldaimatreducingdistress-inducedmigrationandthesecondinaddressingconditionsofwork,termsofemploymentandaccesstobasicnecessities.
• Policyinterventionshavetoconsiderthepushfactors,whichvaryacrossregions,andunderstandtheheterogeneityofmigrants.
Way forward
• Thereisaneedtodistinguishbetweenpolicyinterventionsaimedat‘migrantsforsurvival’and‘migrantsforemployment’.
• Continueddynamicinterventionsoverlongperiodsoftimewouldyieldbetterresultscomparedtosingle-pointstaticinterventions,especiallyinthecontextofseasonalmigrants.
• LocalbodiesandNGOswhichbringaboutstructuralchangesinlocalregionsneedtobeprovidedmorespace.
• Interventionsaimedatenhancedskilldevelopmentwouldenableeasierentryintothelabourmarket.
www.amritaias.com | [email protected] | +91 85890 60000
17
• Wealsoneedindependentinterventionsaimedspecificallyataddressingtheneedsofindividualandhouseholdmigrantsbecausehouseholdmigrationnecessitatesaccesstoinfrastructuresuchashousing,sanitationandhealthcaremorethanindividualmigrationdoes.
• Variousinterventionsmustcomplementeachother.
• Forinstance,governmentinterventionsrelatedtoemploymentcanbesupportedbymarket-ledinterventionssuchasmicro-financeinitiatives,whichhelpintacklingseasonalityofincomes.
• Anotherimportantexampleis,improvedfinancialinfrastructuretoenablethesmoothflowofremittancesandtheireffectiveuserequiremoreattentionfromIndia’sgrowingfinancialsector.
• IndianeedssmarturbanisationinadditiontoMigrationpolicy:
• AstrategicshiftisneededthewayGovernmentlooksatmigrants.
• Over34%ofIndia’scurrentpopulationlivesinurbanareas,risingby3%since2011.
• Bysomeestimates,India’surbanpopulationcouldincreaseto814millionby2050.Andyet,citieslookandfeeldowntrodden,rivenwithpovertyandpoorinfrastructure,withlittlesemblanceofurbanplanning.
• Weneedtoempowerourcities,withafocuson:
» landpolicyreforms,
» grantingurbanlocalbodies,thefreedomtoraisefinancingand
» enforcelocallandusagenorms.
• KeyareastohavefulfilledSmartcitymission
» Socioeconomicaspect
» Physicalcomponents
» Institutionalmechanism
www.amritaias.com | [email protected] | +91 85890 60000
18
• Ifthesethreeobjectivesarewoventogetherandineachother,itiseasytodiversifyandaddressnumberofproblemslikemobility,developmentofphysicalinfrastructure,ICT,health,andeconomy.
Conclusion
India’smigrationstoryiscomplicatedbecausecitieslikeFaridabad,LudhianaandSurathaveover55%ofmigrants,whereastherateinAgraandAllahabadisbelow15%.Globally,anestimated244millionpeopleare internationalmigrantswhomovebetweencountries.Internalmigrationisthreetimesthatnumber,affectingthelivesoffarmorepeople,althoughitisgivenmuchlessattentioninpoliticaldebatesandplanningprocesses
Practice question
Nationalpolicyoninternalmigrationisneededtofacilitateinclusivegrowthandreductioninregionaldisparities.Criticallyanalyse(250words)
www.amritaias.com | [email protected] | +91 85890 60000
19
EASE OF DOING BUSINESS AND INDIA
Context
• India’srankinginthelatesteditionoftheWorldBank’sEaseofDoingBusinessIndexhasjumped23spotsto77among190economies.Itisasubstantialimprovementoverthelastcoupleofyears.
3
Performance of various countries
• Thetopfiveoverallare:NewZealand,Singapore,Denmark,HongKongandKorea.TheU.S.ranks8th,downfrom6thlastyear.
• Asperthelatestreport,Afghanistanhadmovedupthemost,by16spots,from183thinlastyear’srankingto167ththisyear.
• ChinaandIndia—twoeconomieswiththelargestpopulations—areamongtop10improversthisyear.
• Afghanistan,Djibouti,Azerbaijan,Togo,Kenya,Côted’Ivoire,TurkeyandRwandaroundedoutthetop10mostimprovedlist.Inaddition,DjiboutiandIndiaaretheonlyeconomiestomakethe10topmostimprovedlistforthesecondconsecutiveyear.
Performance of India
• Indiaclimbed23spotsfromayearagotorank77outof190countriesintheWorldBank’slatestreportontheeaseofdoingbusiness.
• Itwasalsoamongthetop10mostimprovedeconomiesalongwithcountriessuchasChina,DjiboutiandAzerbaijan.
• TheeaseofdoingbusinessinIndiaimprovednotablyafteraseriesofreformsmadeiteasierforcompaniestogetconstructionpermits,paytaxesandtradeacrossborders.
www.amritaias.com | [email protected] | +91 85890 60000
20
A nation’s ranking on the index is based on the average of 10 sub-indices
• Startingabusiness–Procedures,time,costandminimumcapitaltoopenanewbusiness
• Dealingwithconstructionpermits–Procedures,timeandcosttobuildawarehouse
• Gettingelectricity–procedures,timeandcostrequiredforabusinesstoobtainapermanentelectricityconnectionforanewlyconstructedwarehouse
• Registeringproperty–Procedures,timeandcosttoregistercommercialrealestate
• Gettingcredit–Strengthoflegalrightsindex,depthofcreditinformationindex
• Protectinginvestors–Indicesontheextentofdisclosure,extentofdirectorliabilityandeaseofshareholdersuits
• Payingtaxes–Numberoftaxespaid,hoursperyearspentpreparingtaxreturnsandtotaltaxpayableasshareofgrossprofit
• Tradingacrossborders–Numberofdocuments,costandtimenecessarytoexportandimport
• Enforcingcontracts–Procedures,timeandcosttoenforceadebtcontract
• Resolvinginsolvency–Thetime,costandrecoveryrate(%)underbankruptcyproceeding
• TheDoingBusinessprojectalsooffersinformationonfollowingdatasets:
• Distancetofrontier-Showsthedistanceofeacheconomytothe“frontier,”whichrepresentsthehighestperformanceobservedoneachoftheindicatorsacrossalleconomiesincludedsinceeachindicatorwasincludedinDoingBusiness
• Entrepreneurship-Measuresentrepreneurialactivity.Thedataiscollecteddirectlyfrom130companyregistrarsonthe
www.amritaias.com | [email protected] | +91 85890 60000
21
numberofnewlyregisteredfirmsoverthepastsevenyears
• Goodpractices-ProvideinsightsintohowgovernmentshaveimprovedtheregulatoryenvironmentinthepastintheareasmeasuredbyDoingBusiness
• Transparencyinbusinessregulation-Dataontheaccessibilityofregulatoryinformationmeasureshoweasyitistoaccessfeeschedulesfor4regulatoryprocessesinthelargestbusinesscityofaneconomychallengestoeaseofdoingbusiness:
• Methodologychallenge-expandthecoverageoftheindextomakeitmorereal.Thekindoflawstheindexlooksatareatstatelevellawsandnotnationallaws.Somoreimportancehastobealsogiventothestatelevelexposuresandbusinessperformances.
• Needforfactormarketreforms-theareasofmakingthelandavailableshouldbeimprovedfrom190days.Landallotment,constructionpermitsshouldbeencouraged.Thelabourreforms-intermsofhiringandretrenchingmechanismshouldbethere.
• Crossborderbusiness,i.e.propertradepolicyisrequiredtoenhancebusinessopportunities.
Why is the index important?
• Theindexessentiallyfocusesonredtapeandadministrativehurdles.Itisbasedonfouressentialsourcesofinformation.
» Thelawsinthestatutebook
» Feedbackfromexperts
» Consultationwithnationalgovernment
» ConsultationswithWBstaff
• Aftertheinformationfromtheseplaces,theindexisputinplace
Areas of improvement:
• Entrepreneurswereabletostartabusinessmoreeasilyafter
www.amritaias.com | [email protected] | +91 85890 60000
22
Indiaintegratedmultipleapplicationformsintoageneralincorporationform.Reformsalso“streamlinedtheprocessofobtainingabuildingpermitandmadeitfasterandlessexpensivetoobtainaconstructionpermit.”
• Lastyear,thecountryamendeditsinsolvencyandbankruptcycodewhichpreventedwillfuldefaultersfrombuyingupanyoftheirtroubledassetsatdiscountedrates.Thatstrengthenedaccesstocreditas“securedcreditorsarenowgivenabsolutepriorityoverotherclaimswithininsolvencyproceedings”.
• OtherareasofimprovementincludedsimplifyingIndia’scomplextaxstructurethatmadeiteasiertopaytaxes.InitiativesimplementedundertheNationalTradeFacilitationActionPlan2017-2020improvedtheefficiencyofcross-bordertradingandreducedthetimetakentomeetcompliancerequirements.
Analysis of Index and India’s performance
• TheIndexseekstomeasure11areasofbusiness,amongthemtheprocedures,timelinesandcostrelatedtoconstruction,protectionofminorityinvestors,paymentsoftax,timeandcosttoexportaproductorimportitandtoresolvecommercialdispute,thequalityofthejudicialprocessandtimetakenandthecostforresolutionorinsolvency.
• India’sscorewasboostedthistimebecauseofthestridesincross-bordertradingwiththestreamliningofpaperworkanddocumentation—thecountry’sscorehasmovedupfrom146lastyearonthiscountto80thistime.
• ThescoresshouldimprovefurthernexttimewithrecognitionofthelawsonGSTandmorecompaniestakingtheresolutionrouteundertheinsolvency.
• Theotherareaofimprovementisinconstructionpermits.Alltheseunderlinetheimportanceofsupply-sidereforms.
• TheotherimportanttakeawayfromtheIndexisthatwhatiscommonamongthetop-rankedeconomiesisthepatternofcontinuousreform.
www.amritaias.com | [email protected] | +91 85890 60000
23
• Indiahasconsiderablegroundtocoveronthisfront:Whenitcomestoenforcingcontracts,thecountry’sscorehasbarelymovedinthelatestranking.
Limitations of the index for India
• ThisindexisbasedonwhatishappeningintwoIndiancities-DelhiandMumbai.Indiaisyettoseetheresultofindexwhichcovermorethaneightcities.
• Thus,tosaythateaseofdoingbusinesshasimproveddramaticallyforthewholeofcountrywouldbeexaggeration.
• AbetterindicatorwillcomebyWBwhichiscalledasEnterpriseSurveywhichactuallygoesintodetailshowenterprisesindifferentpartofthecountryperform.
• Thus,abroaderpictureofbusinessinIndiawillbeknownbymergingthefindingsofeaseofdoingbusinessandworldbankenterprisesurvey.
Way forward
• Thelessonhereistheabsenceofjudicialreforms,bureaucraticandlegalhurdlesarehurtingtheeconomy.
• InafederalstructurelikeIndia,cuttingtheredtapeoreasingproceduresacrossstatesisnoteasy.
• However,thesignsarethatmanystateshaverecognisedtheneedtoremovehurdlestoattractindustry.
• Businessmencomplainaboutthesteepcostofdoingbusinessandtheconstraintstheyfaceintranslatingideasintoviablecommercialventures.
• AstheWorldBankpointsout,economieswithbetterbusinessregulationsaretheonesthatcreatemorejobopportunitiesandthecountrieswithmoretransparentandaccessibleinformationhavelowerlevelsofcorruption.
• ThepushfordigitalgovernanceshouldenableIndiatocomeintotop30by2022inalmostallparametersexcepttwo,bankruptcyandenforcementofcontracts.Transitionto
www.amritaias.com | [email protected] | +91 85890 60000
24
digitalfunctioninghasabarrierinthepoliticaleconomy.Butnowthepoliticalestablishmentsinallstateswouldliketohaveinvestmentsandresultsofthesame.Sothesituationisappropriateandright.
• Forbankruptcy,theprocessisonandthelegislativeframeworkisthere.Sothesystemshouldworkwellenoughwithclosemonitoringandsupervision.
• Therealachievementwillbetoachievetheenforcementofcontracts.ItistoughoneasitbasicallymeansbringingefficiencyinIndianjudicialsystem.Fromaneconomicperspective,theIndianjudiciaryhasbeenhighlyinefficientanddoesn’tdeliverasperthechangingtimesandneeds.
Conclusion
• Itisgoodtobenchmarkthecountry’sprogressonvariouscountsofstartingabusiness,butitisalsoimportantnottolosesightofthefactthatthisdoesnotmeasuremacrostabilitypoliciesanddevelopmentofthefinancialsector.
• Theboosttorankinghascomeatatimewheninvestmentactivityisfarfromvibrant.
• Thekeyisarevivalindemand,butremovingsystemicconstrainswouldhelpbusinessandindustrybecomemorecompetitive.
Practice Question
Supply-sidereformsenhanceIndia’seconomicprospects,howeverred-tapismandopaquesystemicinterventionscontinuetopullbackgrowth.Discuss.(200words)
www.amritaias.com | [email protected] | +91 85890 60000
25
SECTION 7 OF THE RBI ACT AND RELATED ISSUES
Context
• Inanunprecedentedmove,thegovernmenthasreportedlyinvokedSection7oftheReserveBankofIndiaAct.
4
Background
• TheissueofinvokingSection7(1)ofRBIActcameupduringthehearingofAllahabadhighcourtinacasefiledbytheIndependentPowerProducersAssociationofIndiachallengingRBI’s12Februarycircular.Thehighcourt,inAugust,saidthegovernmentcouldissuedirectionstoRBIunderSection7ofRBIAct.
• Againstthisbackdrop,thegovernmentissuedalettertotheRBIgovernorseekinghisviewsonexemptionforpowercompaniesinrelationtothe12Februarycircular.Anotherinstancewaswhenthegovernmenton10Octobersoughtthegovernor’sviewsonusingRBI’scapitalreservesforprovidingliquidity.
Section 7 of the RBI Act
• AccordingtoSection7oftheRBIActthecentralgovernmentisempoweredtoissuedirectionsitconsidersnecessaryforpublicinteresttothecentralbankfromtimetotimeafterconsultationwiththeRBIgovernor.
• “TheCentralGovernmentmayfromtimetotimegivesuchdirectionstotheBankasitmay,afterconsultationwiththeGovernoroftheBank,considernecessaryinthepublicinterest,”Section7(1)oftheRBIActreads.
• Thesub-sectionunderSection7furtherreads,“Subjecttoanysuchdirections,thegeneralsuperintendenceanddirection
www.amritaias.com | [email protected] | +91 85890 60000
26
oftheaffairsandbusinessoftheBankshallbeentrustedtoaCentralBoardofDirectorswhichmayexerciseallpowersanddoallactsandthingswhichmaybeexercisedordonebytheBank.”
• Section7(3)reads,“SaveasotherwiseprovidedinregulationsmadebytheCentralBoard,theGovernorandinhisabsencetheDeputyGovernornominatedbyhiminthisbehalf,shallalsohavepowersofgeneralsuperintendenceanddirectionoftheaffairsandthebusinessoftheBank,andmayexerciseallpowersanddoallactsandthingswhichmaybeexercisedordonebytheBank.”
• However,completeimplicationofthesectioncannotbedeterminedbecauseithasneverbeeninvokedinthehistoryofindependentIndia.
Section 7 seen as an extreme measure
• Thissectionhasneverbeenusedintillnow.Itwasnotusedevenwhenthecountrywasclosetodefaultinthedarkdaysof1991,norintheaftermathofthe2008globalfinancialcrisis.
• ItisnotclearhowthisSectionoperatessinceithasneverbeenused.
• Theaggressivemovecouldscandaliseasectionofacademiaandexperts,whileraisingquestionsaboutthegovernment’sintentionsandtheimpactonRBI’sautonomy.
The difference between government and RBI
• ThedisinclinationofRBItodilutethepromptcorrectiveaction(PCA)directiveimposeduponthe11publicsectorbanks.
• TherefusalofRBItorelaxactionsonsomemajorpowersectorcompanies.
• ThedifferenceinperceptionsaboutthereserveswithRBIandrightofthegovernmenttodemandtransferfromthemtothegovernmentasdemanded.
www.amritaias.com | [email protected] | +91 85890 60000
27
Issue of autonomy of RBI
• BynowwehaveunderstoodthatgovtandcorporatearemoreinterestedinlowinterestrateswhichsupportinvestmentandgrowthwhileprimarytaskofRBIistocontrolinflation,keepingpricesstableandthusprotectingpurchasingpowerofmoney.
• Thisisnottosaythatgovtandcorporatedonotwantlowinflation,theydobuttheirprimaryfocuslieelsewhere.
• ItisinthiscontextthatautonomyofRBItodecideonmonetarypolicymattersbecomessoimportant.
Monetary Policy Transmission Conundrum
• RBIcutreporateby125bplastyearbutbanksdecreasedlendingrateonlyby60bp.
• RBIisnotthemainorevenprominentmoneysupplierforbanks,butretailsaversare.So,RBIratecutsdonotaffectcostoffundsmuchforthebanks
• Depositsratesaremostlyfixedandcannotbereduced;onlysubsequentdepositratescanbereducedi.e.IfIhavedepositedRs.100inFDfor5years,bankswillhavetopayme8%interestfornext5yearsnomatterwhetherRBIcutsratesornot
• SmallsavinginstrumentssuchasPPF,Postofficeaccountshavehighadministeredinterestrates.Ifbankscutdepositratesbelowthoserates,customerswillshifttothoseinstrumentsandbankswillloseoutonfunds
• Banksasweallknowareunderstress.Keepinglendingrateshighincreasestheirprofitmargins
• NowelldevelopedcorporatebondmarketisthereinIndia.Corporatehavenochoicebuttocometobankstoborrow.
Way forward
• Successfuldemocraciesworkthroughinstitutions.Anyunwantedinterventionleadtothecollapseofthetotalsystem.
www.amritaias.com | [email protected] | +91 85890 60000
28
• ThecentralbanksinmanycountriesarealsonotcreaturesoftheirConstitutionsandtheinstancesofdifferencesbetweenthegovernmentsandcentralbanksarenotuncommon.
• Suchdifferencesreflectrobustnessofdemocracyandrespectforfunctionalautonomyoftheimportantstatutoryinstitutionlikeacentralbank,aslongasthedifferencesaresettledamicably.
• RBIboardwantedawantedaprovisioninthelawthatthegovernmenthastotakeresponsibilityfortheconsequencesofanypolicythatwasforcedontheRBIthroughSection7.Theproposedclausewashowevernotincludedinthesection.
• Therehasneverbeenanyoccasiontoinvokesection7sofar.Questionsarebeingaskedastowhythesituationhasbeenmadetodeterioratesomuchastobeforcedtoinvoketheprovision.
• ThereshouldbeacontinuousdialoguebetweengovernmentandRBIwithRBIhavingfunctionalautonomyintakingdecisions.
Conclusion
FinallyifatallthegovernmentisbentupongivingdirectionstoRBIundersection7,itshouldbereadytoincorporateaclausethatwas suggested in 1949 which clarifies accountability on actionforceduponRBI.InvokingofSection7willbeseenasadmissionoffailureonpartofgovernmenttoworkharmoniouslywithimportantinstitutionsinthesystemandappreciatetheirsensitivities.Thereisneedforeveryonetoworktowardsprotectinglong-terminterestsofthecountry’seconomy.
www.amritaias.com | [email protected] | +91 85890 60000
29
INDIA BHUTAN RECENT DEVELOPMENTS
Context
• TsheringTobgaywillbenewPrimeMinisterofBhutan.DrukNyamrupTshogpaPartyhaswontherecentgeneralelectionsinBhutan.
• TheNationalAssemblyisthelowerhouseofBhutanParliament.ThisisthethirdgeneralelectionafterdemocracywasadoptedinBhutanin2008.
5
India Bhutan Relations
• IndiaandBhutanhavehadlong-standingdiplomatic,economicandculturalrelations.BhutanandIndiarelationsaregovernedbyafriendshiptreatythatwasrenegotiatedonlyin2007,subjectingtheHimalayannation’ssecurityneedstosupervision.
• TreatyofFriendshipin2007,whichbroughtintotheIndia-Bhutanrelationship“anelementofequality.”
• TheTreatyprovidesforperpetualpeaceandfriendship,freetradeandcommerce,andequaljusticetoeachother’scitizens.
India-Bhutan treaty of Friendship time line
• OnAugust8,1949,BhutanandIndiasignedtheTreatyofFriendship,callingforpeacebetweenthetwonationsandnon-interferenceineachother’sinternalaffairs.
• Indiare-negotiatedthe1949treatywithBhutanandsignedanewtreatyoffriendshipin2007.
• ThenewtreatyreplacedtheprovisionrequiringBhutantotakeIndia’sguidanceonforeignpolicywithbroadersovereigntyandnotrequireBhutantoobtainIndia’spermissionoverarms
www.amritaias.com | [email protected] | +91 85890 60000
30
imports.
• Underthe2007India-BhutanFriendshipTreaty,thetwosideshaveagreedto“cooperatecloselywitheachotheronissuesrelatingtotheirnationalinterests.”
• NeitherGovernmentshallallowtheuseofitsterritoryforactivitiesharmfultothenationalsecurityandinterestofeachother
• Aschemetitled“ComprehensiveSchemeforEstablishmentofHydro-meteorologicalandFloodForecastingNetworkonriversCommontoIndiaandBhutan”isinoperation.Thenetworkconsistsof32Hydro-meteorological/meteorologicalstationslocatedinBhutanandbeingmaintainedbytheRoyal
• GovernmentofBhutanwithfundingfromIndia.ThedatareceivedfromthesestationsareutilizedinIndiaforformulatingfloodforecasts.
Importance of Bhutan
• BhutaninabufferstatebetweenIndiaandchina.Bhutansharesa470kmlongborderwithChina.
• Strategicimportance:TheChumbiValleyissituatedatthetrijunctionofBhutan,IndiaandChinaandis500kmawayfromthe“Chicken’sneck”inNorthBengal,whichconnectstheNortheastwithrestofthecountry.
• TocontaininsurgencyinNorth-East:BhutanhasinthepastcooperatedwithIndiaandhelpedtoflushoutmilitantgroupslikeUnitedLiberationFrontofAsom(ULFA)andNationalDemocraticFrontofBodoland(NDFB)fromtheHimalayannation.
• TocheckChineseinroadsinBhutan:ChinaisinterestedinestablishingformaltieswithThimphu,whereitdoesnotyethaveadiplomaticmission.BhutanisstrategicallyimportantforbothIndiaandChina.ChineseterritorialclaimsinwesternBhutanareclosetotheSiliguriCorridor.
• BeijingisreportedlyinsistingonBhutanestablishingtradeanddiplomaticrelationsasaquidproquoforabordersettlement.
www.amritaias.com | [email protected] | +91 85890 60000
31
• AJointGroupofExpert(JGE)onFloodManagementhasbeenconstitutedbetweenIndiaandBhutantodiscussandassesstheprobablecausesandeffectsoftherecurringfloodsanderosioninthesouthernfoothillsofBhutanandadjoiningplainsinIndiaandrecommendtobothGovernmentsappropriateandmutuallyacceptableremedialmeasures.
Commercial Relations between India and Bhutan
• IndiaisBhutan’slargesttradingpartner.IndiaandBhutanhavesignedanAgreementonTrade,CommerceandTransiton12thNovember2016,whichprovidesforafreetraderegimebetweenthetwocountriesaimedatboostingthebilateraltradeformutualbenefit.
• TheAgreementalsoaimsatfacilitatingBhutan’stradewithcountriesthroughanimprovedprocedureforcontainercargo,strivingtowardsuseofelectronicmeanstofacilitatethemovementoftransitcargo,additionalentry/exitpointsinIndia,etc.
• ImportsfromIndiawereRs.5,650cr.accountingfor80%ofBhutan’stotalimports.Bhutan’sexportstoIndiastoodatRs3,270cr.(includingelectricity)andconstituted90%ofitstotalexports.One-thirdofBhutan’sexportstoIndiaiselectricity.
• Otheritemsofexportincludemineralssuchasferro-silica(theBhutanesehavebeencomplainingthattheseexportshavebeendeclining),cementanddolomite.
• TheGovernmentisplanningtobuildaminidryportinthebordertownofPhuntsholingtopromoteexportsthatareplaguedbylogisticaldifficultiesduetothedifficultterrainandpoorconnectivity.BhutansourcesthemajorityofitsimportrequirementsfromIndia.
Areas of Cooperation
A. Diplomatic Cooperation:
• RegularvisitsbetweenhighestlevelGovernmentfunctionariesofboththecountrieshavebecomeatradition.Forexample,
www.amritaias.com | [email protected] | +91 85890 60000
32
in2014,ourPrimeMinisterchoseBhutanashisfirstcountrytovisitaftergettingelected.
• IndiasendsForeignServiceofficerstoBhutantomaintaingooddiplomaticrelations.
B. Security Cooperation:
• BorderrelationshipbetweenIndiaandBhutanhasremainedverypeaceful.Therearenooutstandingborderdisputesbetweenthetwocountries.
• Boththecountrieshaveconductedjointmilitaryoperationagainstinsurgents.Themostnotablewasin2004,theRoyalBhutanesearmyconductedoperationsagainstULFA(UnitedLiberationFrontofAssam).
C. Economic Cooperation:
• ThecurrencyofBhutanisIndianRupees
• IndiaremainsthesinglelargesttradingpartnerofBhutan
• In2016anewtradeagreementwassigned.ThisagreementaimsatcuttingdownthedocumentationrelatedtotradeandestablishingadditionaltradingpointsinBhutan
• IndiahasprovidedlargescalefinancialassistancetoBhutanforitsFiveYearPlans
• Inthehydro-powersector,manyhydro-powerprojectsinBhutanhasbeendevelopedwithIndia’sassistance
• Indiaimportsaround1540MWofhydro-powerfromBhutan
• IndiahasprovidedastandbycreditfacilityofRs1000crorestohelpBhutanovercometherupeeliquiditycrunch
D. Cultural and Educational Cooperation:
• IndiaBhutanfoundationwasestablishedin2003forimprovingpeopletopeoplecooperationintheareasofculture,educationandenvironmentprotection
• IndiahasprovidedscholarshipsforBhutanesestudentsstudyinginUndergraduateandPostgraduatecoursesinIndianinstitutions
www.amritaias.com | [email protected] | +91 85890 60000
33
E. Environment Cooperation:
• IndiaisconsideringinvolvingBhutaninNationalMissionforSustainingtheHimalayas.
• TheprojectaimsatprotectingtheHimalayanecosystemthathasbeenendangeredbynumerousecologicalproblems.
Areas of Contentions
• TheMotorVehiclesAgreementthatwassignedin2015involvingBangladesh,Bhutan,IndiaandNepal(BBIN)wasblockedbyBhutan’supperhousecitingenvironmentalconcerns.
• IndiahasbeenoccasionallycomplainedbyBhutanformeddlinginitsinternalaffairs.ForExample,India’sdecisiontowithdrawitssubsidiesincookinggasandkerosenein2013.ThetimingofthedecisionwasfewweeksbeforegeneralelectioninBhutanandwasseenasanattempttoinfluencetheelectionoutcome.
• BhutanwantstoincreaseitsexportpowertarifftoIndiathatiscomplainedforbeinglesserthanitscostofproduction
China’s Role
• BhutanwasguidedbyIndiainitsDefenceandForeignaffairs.Theseprovisionswereremovedbythe2007treaty.ThishasthepotentialforChinatohaveinroadsinBhutan’sinternalaffairsandforeignpolicy.
• Bhutanhasproblemslikehighratesofunemploymentandnationaldebt.ThiscanbeasourceforaneconomicallystrongChinatoexertitsinfluence.
• TherehavebeenreportsthatChinaclaimsDoklamPlateauandotherpartsofChumbivalley(theylegallybelongtoBhutan)asitsownterritory.TheChumbivalleyisclosetoIndianstateofSikkimandChicken’sneck(thepassagebetweenmainlandIndiaandNorth-easternStateswhichisalsoknownasSiliguricorridor).ThisposessecurityconcernsforIndia.
www.amritaias.com | [email protected] | +91 85890 60000
34
Conclusion
Hydro-electricpowergeneratedbyBhutan’srun-of-theriverdamsis the economic bedrock of the India-Bhutan relationship. Theupdated India-BhutanFriendship Treaty lays the foundation fortheirfuturedevelopmentinthe21stcentury.Tsheing’shandlingofrelationswithBhutan’stwogiantneighbourswillnotbeaneasytask.Butit ispossibleforBhutantoestablishtieswithChinaaswell as Indiawithout disturbing their regional Interests. Bhutancouldconsider“leavingthetri-junction(Doklam)unresolvedwhilesettling the remaining border issues and proceeding towardsdiplomatic relations with China.” This could trigger heightenedSino-India “economic and diplomatic competition in BhutanwithouterodingthesubstanceofIndia-Bhutanrelations.”
Practice Question
ThetraditionallyuniquebilateralrelationswithBhutan,characterizedbytrustandunderstandinghaveshadowedwithsuspicionandsensitivity.Comment(200words)
www.amritaias.com | [email protected] | +91 85890 60000
35
SARDAR PATEL: UNIFIER OF MODERN INDIA
Context
• PrimeMinisterNarendraModiinauguratedtheStatueofUnity–theworld’stalleststatueofSardarVallabhaiPatel,inGujarat’sKevadiya,onPatel’sbirthanniversary.
• HebecameoneofthemostinfluentialleadersinGujaratasheorganisedthepeasantsofKheda,Borsad,andBardoliinGujaratinanon-violentcivildisobediencemovementagainstoppressivepoliciesimposedbytheBritishRaj.
• SardarVallabhbhaiPatel,popularlyknownastheIronManofIndia,oneofthemostinfluentialpersonalitiestohavefoughtforIndependence,SardarPatelwasborninGujarat,onOctober31,1875.
• Hence,thedayiscelebratedashisbirthanniversaryandisalsoobservedasRashtriyaEktaDiwasorNationalUnityDay.
• RememberingSardarPatel’sstupendousroleinintegratingtheprincelyStatesintoindependentIndia.
6
Force behind unification
• SardarPatel’sforesightandtactfulnavigationofthemostturbulentperiodinpost-Independence,andtheresolvehedemonstratedinintegratingthemorethan500disparateprincelyStates(565around)intotheDominionofIndia.
• LordMountbatten,thelastViceroyofIndia,hadsaid:“ByfarthemostimportantachievementofthepresentgovernmentistheunificationoftheStatesintotheDominionofIndia.
• Patelwasastatesmanwithastrongsenseofrealpolitic,a
www.amritaias.com | [email protected] | +91 85890 60000
36
realisttothecoreandanearthypoliticianwhosesoleaimwastobuildastrongandunitedIndia.
• Patel’swisdom,foresight,patriotism,tact,persuasivepowersandabidingcommitmenttofairplayenabledhimtountangleahighlycomplexpoliticalandsocialproblemwithouttriggeringanykindofrevoltorcivilunrest.
Accession process
• ThelimitedscopeoftheInstrumentsofAccessionandthepromiseofawide-rangingautonomyandtheotherguaranteestheyoffered.
• Itgavesufficientcomforttomanyrulers,whosawthisasthebestdealtheycouldstrikegiventhelackofsupportfromtheBritish,andpopularinternalpressures.
• Thebiggestproblems,however,arosewithafewborderstates,suchasJodhpur,whichtriedtonegotiatebetterdealswithPakistan,withJunagadh,whichdidaccedetoPakistan,andwithHyderabadandKashmir,whichdeclaredthattheyintendedtoremainindependent.
Use of coercion when needed by launching ‘Operation Polo’
• Patelwasalsocompelledtousecoercionbylaunching‘OperationPolo’toliberateandintegrateHyderabadaftertheNizamofHyderabadentertainedfalsehopesofeitherjoiningPakistanorremainingindependent.
• Inaswiftoperationlastingfivedays,HyderabadStatewasliberatedinSeptember1948.Itwasthemostcriticaltimewhenthecountry’spoliticalunitywasinjeopardy,IndiafoundthemanofthemomentinSardarPatel.
• Hedisplayedamazingpatience,tactandasteelydeterminationindealingwithanintransigentruler,whorefusedtoseethewritingonthewallandevenwantedtotaketheissuetotheUnitedNations.
• Displayingstatesmanshipofthehighestorder,SardarPatelpreventedtheattemptstonotonlyBalkaniseIndiabut
www.amritaias.com | [email protected] | +91 85890 60000
37
internationalisetheissueaswell.
• ThecomplicatedcaseofJunagarh,Gujarat,wasalsohandledwithdexteritybyPatel.TheproblemofJammuandKashmirmayhavebeenresolvedlongbackhadSardarPatelbeengivenafreehandtohandleitatthattime.
The Man of Integrity and Architect of the Indian civil services
• TheIronManofIndiawasthechiefarchitectofIndia’ssteelframe,thecivilservices.Thus,theAllIndiaServiceswereseenasanimportantcementingforceinpromotingtheunityandintegrityofthenation.
• HereadilyacceptedtheMahatmaGandhi’sadvicetowithdrawhiscandidacyforthepostofCongressPresidentinfavourofPanditNehruin1946,althoughamajorityofStateCongresscommitteessupportedhiscandidature.
• Itonceagainprovedhisnobleintentionofplacingthecountry’sinterestsaboveself.
• HisloveforthemotherlandwasbestdescribedbyMaulanaAzadwhenhesaid:“Hemadehischoiceoutoftwocoursesthatcomebeforeaman,namelywouldheliveforhiscountryorforhimself?Sardarchosehiscountry.”
• ItisinthefitnessofthingsthattheNationalPoliceAcademy(IPSTrainee-SardarVallabhbhaiPatelNationalPoliceAcademy)locatedontheoutskirtsofHyderabad,Telangana,isnamedafterhim,asatributetothestatesman.
Conclusion
• “Bycommonendeavourwecanraisethecountrytoanewgreatness,whilealackofunitywillexposeustofreshcalamities.”
• ThesepragmaticsbutprofoundremarksdefinedthevisionandthesterlingcharacterofSardarVallabhbhaiPatel,theprincipalunifierofmodernIndia.
• OurDuty:MakingSardarPateldreamsintoReality:
www.amritaias.com | [email protected] | +91 85890 60000
38
• The‘StatueofUnity’isasymbolofboththeunityofheartsandthegeographicalintegrityofourmotherland.
• Itisareminderthatdivided,wemaynotbeevenabletofaceourselves.United,wecanfacetheworldandscalenewheightsofgrowthandglory.
• SardarPatelworkedwithastonishingspeedtodismantlethehistoryofimperialismandcreatethegeographyofunitywiththespiritofnationalism.HesavedIndiafromBalkanizationandintegratedeventheweakestoflimbsintothenationalframework.
• Today,we,the130croreIndiansareworkingshouldertoshouldertobuildaNewIndiathatisstrong,prosperousandinclusive.
• Everydecisionisbeingtakentoensurethatthefruitsofdevelopmentreachthemostvulnerable,withoutanycorruptionorfavouritism,justasSardarPatelwouldhavewantedit.
Practice questions
I. SardarPateltheunifierofmodernIndia.Comment(150words)
II.CompareandcontrasttheunificationpoliciesusedbySardarPatelintheunificationofIndiawiththatofBismarckofGermany.(200words)
www.amritaias.com | [email protected] | +91 85890 60000
39
SOUTH ASIAN ASSOCIATION FOR REGIONAL COOPERATION (SAARC)
Context
• GivingaboosttoChina’slongstandingdemand,PakistanrecentlysaidthatitsupportedactiveparticipationofChinaattheplatformoftheSouthAsianAssociationforRegionalCooperation(SAARC).
7
About SAARC
• TheSouthAsianAssociationforRegionalCooperation(SAARC)wasestablishedwiththesigningoftheSAARCCharterinDhakaon8December1985.
• TheSecretariatoftheAssociationwassetupinKathmanduon17January1987.
• SAARCcomprisesofeightMemberStates:Afghanistan,Bangladesh,Bhutan,India,Maldives,Nepal,PakistanandSriLanka.
» ImportantobjectivesoftheAssociationasoutlinedintheSAARCCharterare:
» topromotethewelfareofthepeoplesofSouthAsiaandtoimprovetheirqualityoflife;
» toaccelerateeconomicgrowth,socialprogressandculturaldevelopmentintheregionandtoprovideallindividualstheopportunitytoliveindignityandtorealizetheirfullpotentials;
» topromoteandstrengthencollectiveself-relianceamongthecountriesofSouthAsia.
China’s demand to be a member in SAARC
• ChinahasastatusofanobserverstateinSAARC.
• However,anobserverstatecangetinvolvewithSAARC
www.amritaias.com | [email protected] | +91 85890 60000
40
membersonspecificinitiativesandtheydonothavevotingrights.
• ChinaenteredSAARCasanobserverin2005,supportedbymostmemberstates.
• China’sentrytotheSAARCisbothathreatandopportunityforIndia.
• ItcaneitherhelpinbringinmoreintegrationintheregionormaydilutetheverypurposeofSAARCbyinitiatingpartisanblockswithinthegroupings.
India’s concerns and fears
• IfChinaisgivenagreaterrole,Indiafearsthatitsneighbourswillcometogethertoopposethecountry’sinterests,particularlyundertheinfluenceofPakistanandChina.
• India’sneighboursareattractedtoChina,becauseofitsgreatereconomicresources,asalsoithasthepotentialtocounterIndia.China’sinfluencecanbewitnessedeveninNepal.
• ToenhancestrategictieswithNepal,Chinahasbeeninvestingheavilyinthatcountry;ithasopenedland-portbetweenNepalandTibetnamedasKyirongwhichwillaffecttheregionalstrategicbalance.
• ThegrowingfriendshipwithChinaandPakistanisviewedbymanyasajointtactictooffsetIndia’sdominanceintheSouthAsianregion.
• Oneofthemostfamousproject,isChina-PakistanEconomicCorridor(CPEC)whichstrategicallyaimsatprovidinglinksbetweentheoverlandSilkRoadandmaritimeSilkRoad.Duetothisproject,ChinabecomesoneofthemajorinvestorsinPakistanbyunderminingIndia’ssovereigntyoverPoK.
• IthasbeenagreedthatChina’sentryinSAARCasafull-membercangiveapushtoSAARCtogrowasaregionalblocasChina’sglobaleconomicinfluencecanhelpSAARCininternationalforum.
www.amritaias.com | [email protected] | +91 85890 60000
41
• But,growingalliancesbetweenChinaandPakistanmayworkagainstIndiaandwhichwillhampertheregionalprogress.
• IthasalsobeenfearedthatChinamayblocktheprojectswhicharebothstrategicallyandeconomicallyimportantforIndia.
Issues within SAARC
• SAARC’semphasisontheprincipleofunanimityfordecisionmakingandexclusionofcontentiousbilateralissuesfromdeliberationsmakestheorganisationfragileandvulnerable.
• Inthelast33years,SAARChasheldonly18Summits,andmanyhavebeenpostponedorcanceledduetovariousissues.
• Thecancellationandpostponementofregularmeetingsembodythepersistenceofthisindifferencetodayaswell.
Way ahead
• Chinaisbecomingmemberofdifferentregionalblocsduetoitsgrowingeconomicandmilitarymight.
• China’sactiveandaggressivediplomacy,tradeandinvestments,manycooperativeagreementswithSAARCnationsisthusenablingittohaveagreaterinfluenceinsouthAsia.
• Indianeedstore-thinkitsregionalstrategiesasriseofChinawillimpactIndia.OftenitisviewedthattheriseofChinawilldecreaseIndia’sinfluenceinSouthAsia.
Conclusion
The likelihood of amending the SAARC Charter to make theorganisation’s structureandmandateeffective is limiteddue totheconflictingviewsofmembercountriestostructuralreforms.The chances of resolving India-Pakistan conflict, the prominentfactorbehindthecomatosestatusoftheorganisation,arelimited.Kashmir is the bone of contention between these two leadingSouthAsianpowers.On theonehand,neither theuseof forcenordiplomacyisexpectedtobringpeacetoKashmirinthenear
www.amritaias.com | [email protected] | +91 85890 60000
42
future.However,thegreaterintegrationoftheregionispossiblewiththerefurbishingofSAARC.
Practice Question
1. AsSAARCislosingoutitssteam,thechallengeofterrorismhasspreadingacrosstheregion.DoyouagreethattheurgentrejuvenationofSAARCcanbeacredibledeterrentinalleviatingthismenace?(200words)
www.amritaias.com | [email protected] | +91 85890 60000
43
PUBLIC CREDIT REGISTRY (PCR)
Context
• TheReserveBankhasinitiatedstepstosetupawide-baseddigitalPublicCreditRegistry(PCR)tocapturedetailsofallborrowers,includingwillfuldefaultersandalsothependinglegalsuitsinordertocheckfinancialdelinquencies.
• ThePCRwillalsoincludedatafromentitieslikemarketregulatorSEBI,theCorporateAffairsMinistryandtheInsolvencyandBankruptcyBoardofIndiatoenablebanksandfinancialinstitutionstogeta360-degreeprofileofexistingandprospectiveborrowersonareal-timebasis.
8
Public Credit Registry
• ThePCRwillbeanextensivedatabaseofcreditinformationforIndiathatisaccessibletoallstakeholders.Theideaistocaptureallrelevantinformationinonelargedatabaseontheborrowerand,inparticular,theborrower’sentiresetofborrowingcontractsandoutcomes.
Management of PCR
• Generally,aPCRismanagedbyapublicauthoritylikethecentralbankorthebankingsupervisor,andreportingofloandetailstothePCRbylendersand/orborrowersismandatedbylaw.
• Thecontractualtermsandoutcomescoveredandthethresholdabovewhichthecontractsaretobereportedvaryindifferentjurisdictions,buttheideaistocaptureallrelevantinformationinonelargedatabaseontheborrower,inparticular,theborrower’sentiresetofborrowingcontractsandoutcomes.
www.amritaias.com | [email protected] | +91 85890 60000
44
Need for a PCR
• Acentralrepository,which,forinstance,capturesandcertifiesthedetailsofcollaterals,canenablethewritingofcontractsthatpreventover-pledgingofcollateralbyaborrower.
• Inabsenceoftherepository,thelendermaynottrustitsfirstrightonthecollateralandeitherchargeahighcostontheloanoraskformorecollateralthannecessarytopreventbeingdilutedbyotherlenders.
• Thisleadsto,whatineconomicsistermedas,pecuniaryexternality–inthiscase,aspilloverofoneloancontractontooutcomesandtermsofotherloancontracts.
• Furthermore,intheabsenceofapubliccreditregistry,the‘good’borrowersaredisadvantagedinnotbeingabletodistinguishthemselvesfromtherestinopaquecreditmarkets;theycouldpotentiallybesubjectedtoarentbeingextractedfromtheirexistinglenderswhoenjoyaninformationmonopolyoverthem.
• Thelendersmayalsoenduppickingupfreshclientswhohaveahistoryofdelinquencythatisunknowntoalllendersandthiswayfacegreateroverallcreditrisk.
Benefits of having a PCR
• APCRcanpotentiallyhelpbanksincreditassessmentandpricingofcreditaswellasinmakingrisk-based,dynamicandcounter-cyclicalprovisioning.
• ThePCRcanalsohelptheRBIinunderstandingiftransmissionofmonetarypolicyisworking,andifnot,wherearethebottlenecks.
• Further,itcanhelpsupervisors,regulatorsandbanksinearlyinterventionandeffectiverestructuringofstressedbankcredits.
• APCRwillalsohelpbanksandregulatorsascreditinformationisa‘publicgood’anditsutilityaretothecreditmarketatlargeandtosocietyingeneral.
www.amritaias.com | [email protected] | +91 85890 60000
45
• Creditinformationisnowavailableacrossmultiplesystemsinbitsandpiecesandnotinonewindow.
• Dataonborrowingsfrombanks,non-bankingfinancialcompanies,corporatebondsordebenturesfromthemarket,externalcommercialborrowings(ECBs),foreigncurrencyconvertiblebonds(FCCBs),masalabonds,andinter-corporateborrowingsarenotavailableinonedatarepository.
• PCRwillhelpcaptureallrelevantinformationaboutaborrower,acrossdifferentborrowingproductsinoneplace.
• Itcanflagearlywarningsonassetqualitybytrackingperformanceonothercredits.
Task force on PCR
• TheReserveBankofIndia(RBI)hadformedahigh-leveltaskforceonpubliccreditregistry(PCR)forIndia.ThetaskforcewaschairedbyYMDeosthalee.
• Thetaskforcehassuggestedtheregistryshouldcaptureallloaninformationandborrowersbeabletoaccesstheirownhistory.
• Dataistobemadeavailabletostakeholderssuchasbanks,onaneed-to-knowbasis.Dataprivacywillbeprotected.
Wilful Defaulters: On RBI
• Simply,defaultmeansnon-paymentofaloanavailedbyaborrower.
• Awilfuldefaulterisanentityorapersonthathasnotpaidtheloanbackdespitetheabilitytorepayit.
• Thoughwilfuldefaultcoverstheabovementionedbroadareas,majorinstanceisnon-repaymentofloanavaileddespitetheabilitytopaytheloan.
• Hence,itisinthesenseofnon-repaymentofdebtthatwilfuldefaultisseriouslydefined.
www.amritaias.com | [email protected] | +91 85890 60000
46
Areas covered under wilful default
• AspertheRBIregulations,wilfuldefaultcoversseveralbroadareas:Deliberatenon-paymentoftheduesdespiteadequatecashflowandgoodnetworth,siphoningoffoffundstothedetrimentofthedefaultingunit,assetsandproceedsbeingunderutilised,misrepresentation/falsificationofrecords,disposal/removalofsecuritieswithoutbank’sknowledgeandfraudulenttransactionsbytheborrower.
A ‘wilful default’ would be deemed to have occurred if any of the following events is noted
• Theunithasdefaultedinmeetingitspayment/repaymentobligationstothelenderevenwhenithasthecapacitytorepay.
• Theunithasdefaultedinmeetingitspayment/repaymentobligationstothelenderandhasnotutilisedthefinancefromthelenderforthespecificpurposesforwhichfinancewasavailedofbuthasdivertedthefundsforotherpurposes.
• Theunithasdefaultedinmeetingitspayment/repaymentobligationstothelenderandhassiphonedoffthefundssothatthefundshavenotbeenutilisedforthespecificpurposeforwhichfinancewasavailedof,norarethefundsavailablewiththeunitintheformofotherassets.
• Theunithasdefaultedinmeetingitspayment/repaymentobligationstothelenderandhasalsodisposedofforremovedthemovablefixedassetsorimmovablepropertygivenforthepurposeofsecuringatermloanwithouttheknowledgeofthebank/lender.
• AccordingtotheRBIregulations,theidentificationofthewilfuldefaultshouldbemadekeepinginviewthetrackrecordoftheborrowersandshouldnotbedecidedonthebasisofisolatedtransactions/incidents.Thedefaulttobecategorisedaswilfulmustbeintentional,deliberateandcalculated.
The Fugitive Economic Offenders Act, 2018
• TheBillaimstostopeconomicoffenderswholeavethe
www.amritaias.com | [email protected] | +91 85890 60000
47
countrytoavoiddueprocess.OffencesinvolvingamountsofRs100croreormorefallunderthepurviewofthislaw.
• EconomicoffencesarethosethataredefinedundertheIndianPenalCode,thePreventionofCorruptionAct,theSEBIAct,theCustomsAct,theCompaniesAct,LimitedLiabilityPartnershipAct,andtheInsolvencyandBankruptcyCode.
Who is a ‘fugitive economic offender’?
• AccordingtoSection4ofthelaw,a‘fugitiveeconomicoffender’is“anyindividualagainstwhomawarrantforarrestinrelationtoascheduledoffencehasbeenissuedbyanycourtinIndia,who:
» leavesorhasleftIndiasoastoavoidcriminalprosecution;or
» RefusestoreturntoIndiatofacecriminalprosecution.”
How is a person declared as an offender?
• ADirector,appointedbythecentralgovernment,willhavetofileanapplicationtoaSpecialCourttodeclareapersonasa‘fugitiveeconomicoffender’.
• UnderClause(2)ofSection6,theapplicationmustcontain:
» “(a)reason/sforthebeliefthatanindividualisafugitiveeconomicoffender;
» (b)Anyinformationavailableastothewhereaboutsofthefugitiveeconomicoffender;
» (c)Alistofpropertiesorthevalueofsuchpropertiesbelievedtobetheproceedsofcrime,includinganysuchpropertyoutsideIndiaforwhichconfiscationissought;
» (d)AlistofpropertiesownedbythepersoninIndiaforwhichconfiscationissought;
» (e)Alistofpersonswhomayhaveaninterestinanyofthepropertieslistedundersub-clauses(c)and(d).”
• TheDirectorhasthepowertoattachanypropertythe
www.amritaias.com | [email protected] | +91 85890 60000
48
accusedholds.
Procedure to follow
• TheCourtwillissueanoticetothepersonnameda‘fugitiveeconomicoffender’.
• Withinsixweeksfromthedateofnotice,thepersonwillhavetopresentthemselvesat“aspecifiedplaceataspecifiedtime”.
• Iftheoffenderfailstodoso,theywillbedeclareda‘fugitiveeconomicoffender’andtheirpropertiesaslistedintheDirector’sapplicationwillbeconfiscated.
• No.Section11oftheActdisqualifiesthosedeclaredasoffendersfromeitherfilingordefendingacivilclaimincourt.
• TheSpecialcourtwillappointan‘administrator’tooverseetheconfiscatedproperty.Thispersonwillberesponsiblefordisposingofthepropertyaswell,andthepropertywillbeusedtosatisfycreditors’claims
• Recently,RBIDeputyGovernorViralAcharyamadeacaseforsettingupaPublicCreditRegistry(PCR),incorporatinguniqueidentifiers:AadhaarforindividualborrowersandCorporateIdentificationNumberforfirms.
Public Credit Registry:
• Apubliccreditregistryisaninformationrepositorythatcollatesallloaninformationofindividualsandcorporateborrowers.
• Acreditrepositoryhelpsbanksdistinguishbetweenabadandagoodborrowerandaccordinglyofferattractiveinterestratestogoodborrowersandhigherinterestratestobadborrowers.
• Themoveisbasedontherecommendationsofacommittee,headedbyY.M.Deosthalee.PCRwilladdressissuessuchasinformationasymmetry,improveaccesstocreditandstrengthenthecreditcultureamongconsumers.
• Itcanalsoaddressthebadloanproblemstaringatbanks,as
www.amritaias.com | [email protected] | +91 85890 60000
49
corporatedebtorswillnotbeabletoborrowacrossbankswithoutdisclosingexistingdebt.
• APCRmayalsohelpraiseIndia’srankintheglobaleaseofdoingbusinessindex.
• SettingupthePCRwillhelpimproveIndia’srankingsintheWorldBank’seaseofdoingbusinessindex.
PCR in other countries
• PCRinothercountriesnowincludeothertransactionaldatasuchaspaymentstoutilitieslikepowerandtelecomforretailconsumersandtradecreditdataforbusinesses.
• Regularityinmakingpaymentstoutilitiesandtradecreditorsprovidesanindicationofthecreditqualityofsuchcustomers.
Innovation in lending
• Accesstocreditinformation,includingdebtdetailsandrepaymenthistorywoulddriveinnovationinlending.
• Forexample,currentlymostbanksfocusonlargecompaniesforloansandconsequentlythemicro,smallandmediumenterprisesareleftwithlimitedoptionsforborrowing.
• Withsatisfactorypaymenthistoryandvalidateddebtdetailsmadeavailable,itwillincreasethecreditavailabilitytomicro,smallandmediumenterprisesalongwithdeepeningofthefinancialmarkets.Thiswillsupportthepolicyoffinancialinclusion.
Asian Clearing Union
• TheAsianClearingUnion(ACU),withheadquartersinTehran,Iran,wasestablishedonDecember9,1974attheinitiativeoftheUnitedNationsEconomicandSocialCommissionforAsiaandthePacific(ESCAP).
• TheprimaryobjectiveofACU,atthetimeofitsestablishment,wastosecureregionalco-operationasregardsthesettlementofeligiblemonetarytransactionsamongthemembersoftheUniontoprovideasystemforclearingpaymentsamongthe
www.amritaias.com | [email protected] | +91 85890 60000
50
membercountriesonamultilateralbasis.
• InOctober2013,Iranunveiledaplansuggestingthatmembersoftheunion–Bangladesh,Bhutan,India,Maldives,Myanmar,Nepal,Pakistan,SriLankaandIran–employahome-grownsystemdevelopedbytheCentralBankofIrantogetaroundSWIFTcalledSEPAMinPersian.
Conclusion
To ensure a comprehensive database, the committee has alsoproposed linkageswithotherdefaulterdatabases like thewilfuldefaulter’s list and thatmaintainedbyExportCreditGuaranteeCorp. of India as well as with other information databases likegoods and services tax network data and utility and insurancepaymentsdata.However,theconcernslikedataprivacyneedtobetakencaredattherightlevel.Andtheregistryshouldcapturebothpositiveandnegativeinformationforallloansandborrowersareabletoaccesstheirownhistory.
Practice Question
I. WhatdoyoumeanbyPublicCreditRegistry?DoyouthinkthattheproposedPubliccreditregistrycanimprovethebadloanissuesatpublicsectorbanks?(200words)
www.amritaias.com | [email protected] | +91 85890 60000
51
INDIA’S NUCLEAR TRIAD
Context
• Indiahasdeclaredthatitsnucleartriad,statedinitsnucleardoctrine,isoperationalafterindigenousballisticmissilenuclearsubmarineINSArihantrecentlyachievedamilestonebyconductingitsfirstdeterrencepatrol.
• Thesubmarinerecentlyreturnedfromitsfirstdeterrencepatrol,completingtheestablishmentofthecountry’ssurvivablenucleartriad.INSArihantisnowcapableofprowlingthedeepseascarryingballisticmissilesequippedwithnuclearwarheads.
9
Significance
• ThisplacesIndiaintheleagueofthefewcountriesthatcandesign,constructandoperateshipsubmersibleballisticnuclear(SSBN).
• GivenIndia’sstatedpositionof‘No-First-Use’(NFU)inlaunchingnuclearweapons,theshipsubmersibleballisticnuclear(SSBN)isthemostdependableplatformforasecond-strike.
• Becausetheyarepoweredbynuclearreactors,thesesubmarinescanstayunderwaterindefinitelywithouttheadversarydetectingit.Theothertwoplatforms—land-basedandair-launchedarefareasiertodetect.
• ArihantwascommissionedintoserviceinAugust2016.Ithasadisplacementof6000tonnesandispoweredbyan83MWpressurisedlight-waterreactorwithenricheduranium.
India’s NFU
• In1998,IndiaconductednucleartestsunderPokhran-IIand
www.amritaias.com | [email protected] | +91 85890 60000
52
in2003,itdeclareditsnucleardoctrinebasedoncredibleminimumdeterrenceandaNFUpolicywhilereservingtherightofmassiveretaliationifstruckwithnuclearweaponsfirst.
• Nofirstuse(NFU)referstoapledgeorapolicybyanuclearpowernottousenuclearweaponsasameansofwarfareunlessfirstattackedbyanadversaryusingnuclearweapons.Earlier,theconcepthadalsobeenappliedtochemicalandbiologicalwarfare.
• Indiafirstadopteda“Nofirstuse”policyafteritssecondnucleartests,Pokhran-II,in1998.InAugust1999,theIndiangovernmentreleasedadraftofthedoctrinewhichassertsthatnuclearweaponsaresolelyfordeterrenceandthatIndiawillpursueapolicyof“retaliationonly”.
• ThedocumentalsomaintainsthatIndia“willnotbethefirsttoinitiateanuclearfirststrike,butwillrespondwithpunitiveretaliationshoulddeterrencefail”andthatdecisionstoauthorisetheuseofnuclearweaponswouldbemadebythePrimeMinisterorhis‘designatedsuccessor(s)’.
• Needofthispolicy
• Adoptingano-firstusepolicyenablesNewDelhitokeepthenuclearthresholdhigh,especiallyasPakistantriestolowerthethresholdbydevelopingtacticalnuclearweapons,theHatf-9with60kmrange.
• ItmustalsobenotedthatNewDelhiisnotborderedbyjustonenuclearweaponstate.Chinaadoptsano-firstusepolicyand,inspiteofcallsforBeijingtoreviseitsno-firstusedoctrine,itisunlikelytodoso.Hence,ifNewDelhigaveupitsno-firstusedoctrine,itcouldgiveBeijingachancetoadoptafirststrikepolicyandshiftblameonIndia.
• Infact,India’sadoptionofafirststrikepolicywouldbeaneasyexcuseforBeijingtogiveupitsno-firstusedoctrineagainsttheUnitedStatesandRussiaaswell.
• Moreover,Indiahasalwayspromotedherselfasaresponsiblenuclearweaponstate.Hence,afirststrikepolicywouldseverelydamageIndia’sreputationasaresponsiblenuclear
www.amritaias.com | [email protected] | +91 85890 60000
53
weaponstate.ThismeansthatwhileIndiawouldnotberesilienttoanynuclearattackbyitsadversaries,atthesametime,itwillnotactasavillainwhotriestobullyitsadversariesbythreateningtostrikefirst.
• Also,itisIndia’snofirstusedoctrinethathasenabledbothPakistanandIndiatokeeptheirnucleararsenalinade-matedpostureratherthanareadydeterrentposture.Thismeansnuclearwarheadsarenotmatedwiththedeliverysystems.
• ThisreducesthechancesofnuclearterrorisminPakistanandalsoreducesthelikelihoodofanaccidentallaunchofanuclearweapon.AfirststrikepolicybyIndiamaynothaveallowedPakistantokeeptheirnucleararsenalinade-matedposture.
• ThereisalsotheissueofballisticmissiledefensebeingdevelopedbyIndiawhichishighlydestabilizinginnatureandhence,NewDelhiwouldcontinuetoresorttousingitsno-firstusedoctrineinordertopreventinstabilityintheSouthAsianregion.Afirst-strikepolicy,coupledwithaballisticmissiledefensesystem,couldprovokePakistantolaunchanuclearpre-emptivestrikeagainstIndia.
• Byadoptingano-firstusedoctrine,NewDelhihasalsomadeitevidentthatnuclearweaponsareindeedtheweaponsoflastresort.AbandoningthisdoctrinewouldmakeitevidentthatIndiaconsiderstheoptionofusingnuclearweaponsintheinitialphasesoftheconflict.Infact,India’snuclearstrategyisdependentonpunitiveretaliation.ThisstrategyitselfactsasdeterrenceagainstPakistan.
Present development
• OnNov.5triumphantlyannouncedthatIndia’sfirstindigenousnuclear-poweredballisticmissile(SSBN)submarine,INSArihant,hassuccessfullycompleteditsfirstdeterrencepatrol.
• AdeterrentpatrolisonewhereanSSBNwithafullcomplementofnuclear-tippedmissilessailstowardsitsintendedareaofdeploymentwithinrangeofanadversary’stargets.
• Incaseofanattackbyanuclear-armedadversary,theSSBN
www.amritaias.com | [email protected] | +91 85890 60000
54
canbeorderedtolaunchitsweaponsafterreceivingacodedsignalfromIndia’snuclearcommandpost.
• Thesubmarineisfullyoperationalnow,thecrewhasworkedandthemissilesareloaded.ItwillstayoncontinuousdeterrencepatrolsandwhenthesignalgoesoutfromNewDelhitoINSArihant,itshouldbeabletolaunchanuclearmissile.
• TheUnitedStates,Russia,theUnitedKingdom,FranceandChinaaretheonlycountriesthatcandelivernuclearwarheadsfromasubmarine.
• The6,000-tonArihant,whichmeansdestroyerofenemies,isarmedwith12B-05submarinelaunchedballisticmissiles(SLBMs)capableofdeliveringnuclearwarheadsupto750kmaway.
• Therange,however,isalimitationandIndianeedstodeploySLBMscapableofstrikingtargetsthousandsofkilometresaway.
• • Indiaalreadyhasthecapabilitytocarryoutnuclearstrikeswithfighterplanesandland-launchedmissiles.TheAgniseriesofballisticmissilesandwarplanessuchasSukhoi-30sandFrench-originMirage-2000scandelivernuclearwarheads.TheRafalefightersorderedfromFrancearealsonuclearcapable.
Significant of the development
• Incaseofanattackbyanuclear-armedadversary,theSSBNcanbeorderedtolaunchitsweaponsafterreceivingacodedsignalfromIndia’snuclearcommandpost.
• TheabilityoftheNuclearCommandAuthorityheadedbythePMtocommunicatewiththesubmarinethroughanExtremelyLowFrequency(ELF)communicationsystem.
• Deterrentpatrols,asthetermindicates,areexactlythat.Theyaremeanttodeterapotentialadversaryfromlaunchingafirststrikebyholdingoutwhatiscalledthethreatofassureddestruction.Onceasubmarinesailsoutintotheoceanandsailssubmerged,itisextremelydifficulttodetectandtrack
www.amritaias.com | [email protected] | +91 85890 60000
55
whichmakesitthemostsurvivableplatformofthetriad.
• SailinganSSBNoutonadeterrencepatrolrequiresaveryhighlevelofconfidenceinthesubmarine’stechnicalcapabilitiesandcrewskills.ChinawasthelastentrantintothisclubandisthoughttohavedeployeditsJinclassSSBNsonadeterrencepatrolasrecentlyas2015.
• BothIsraelandNorthKoreaoperateconventionalsubmarinescapableofbeingfittedwithnuclear-tippedmissilesbutitisuncleariftheyhaveeverconductedpatrols.
• Indiaisscalingupthisproject.AsecondSSBN,INSArighat,waslaunchedattheShipBuildingCentre(SBC)inVisakhapatnamonNovember19,2017.
• TheArighatisonharbourtrialsandisexpectedtojointhenavyinafewyears.Twomoresubmarines,theS-4andtheS-4*arealsobeingassembledandarelikelytobelaunchedby2020and2022.
• Thelasttwosubmarinesareover1000tonsheavierthantheArihantandtheArighatandcancarryeightK-4missiles.
India’s triad is truly complete?
• CurrentlyonlytheUSandRussiaamongthenuclear5havetheresourcesandthepedigreetoclaimsuchacapability.
• EvenFranceandChinahavetrimmedtheirdeterrencesails.Paris,forinstance,maintainsonlyasea-basedandanair-bornedeterrentcapability.Theclassicaltriadisnotprovingtobeascost-effectiveasitwasonceperceived.
• Indiaislocatedinaverychallengingweaponsofmassdestruction(WMD)region,whatiseuphemisticallyreferredtoas“aroughneighbourhood”andthefactthatbothitsnuclearcapableneighbours(ChinaandPakistan)areinadeepandcovertWMDcooperationframeworkcompoundsthechallengeforDelhi.
• AddtothisthebeliefinNewDelhithatPakistanhasalsouseditsnuclearcapabilitytoshielditsterrorisminvestmentandthestrategicpicturebecomesevenmuddier.
www.amritaias.com | [email protected] | +91 85890 60000
56
• ItmeritsrecallthatChina,missileonthisboatisconsideredtobeasea-basedvariantoftheDongfeng-4serieswitharangeupwardsof5,000km.Incontrast,theArihantisestimatedtohaveamissilewitharangeinhundredsofkms.
• However,theSSBNasaplatform,whichiswhatArihantisgenerically,isnotmeantforwarfightingbuttomaintainorimposepeaceinanuneasystrategicenvironment.
• Overthelast46years,Francehascarriedout500suchdeterrentpatrolsandmarkedthismilestoneonOctoberthisyear.HenceitwillbemuchcostincurringforIndia.
• IndiamaintainsnuclearwarfarepolicycanteredonaNoFirst-Use(NFU)and“credibleminimumdeterrence”(perhapsslowlyshiftingtoa“credibledeterrence”)doctrine,whichrequiresanassuredso-calledsecond-strikecapability.
• However,unliketheUnitedStates,Britain,andFrance,whichmaintaincontinuousSSBNpatrolpostures,Indiawilllikelyrelyonanoccasionalsea-baseddeterrent—atleastforthetimebeinggivenfinancialandtechnicalconstraints,butalsoduetoland-basednuclearassets,whichactasaneffectivedeterrent.
• Notenoughinformationhasbeenmadepublictoassesswithconfidencetheprecisenatureoftheallegeddeterrentpatrol.Regulardeterrentpatrolsareonlylikelytobeginwiththedeploymentofotherboatsoftheclass.
• ThesecondArihant-classSSBN,thefutureINSArighant,willhaveeightmissiletubes,twicethenumberinstalledontheArihant.Itwillalsohaveamorepowerfulreactorandaslightlybiggeroveralldisplacement.Itisalsoassumedtobequieterthanthefirst-of-classboomer.
India’s nuclear capabilities
• ThecountrytesteditsfirstnucleardeviceinMay1974,andremainsoutsideboththeTreatyontheNon-ProliferationofNuclearWeapons(NPT)andtheComprehensiveNuclearTestBanTreaty(CTBT).
• However,Indiahasafacility-specificsafeguardsagreementin
www.amritaias.com | [email protected] | +91 85890 60000
57
placewiththeInternationalAtomicEnergyAgency(IAEA)andawaiverfromtheNuclearSuppliersGroup(NSG)allowingittoparticipateinglobalciviliannucleartechnologycommerce.
• AlthoughIndiahasalsostockpiledroughly2.4tonsofhighlyenricheduranium(HEU),someofthismaterialismostlyintendedforuseinnuclearsubmarinesandresearchreactors.
• TheplutoniumforIndia’snucleararsenalismostlikelyobtainedfromtworesearchreactors:the40MWtCIRUSandthe100MWtDhruva,whichbeganoperationsin1963and1988,respectively.
• Thefirstprototypefast-breederreactoratKudankulamdidnotmeetitsSeptember2015deadlinetostartcommercialoperationduetotechnologicalissues.
• Atthesametime,Indiacontinuedtosupporteffortsfornucleardisarmament.
• In1988,PrimeMinisterRajivGandhisubmittedanActionPlanforaNuclear-Weapons-FreeandNon-ViolentWorldOrdertotheUnitedNationsGeneralAssembly.AsnegotiationsontheCTBTrapidlyprogressedintheearly1990s,IndianelitescametoregardtheCTBTasaninstrumentofnon-proliferationthatsoughttofreezecountries’nuclearcapabilities.
• In1995theNarasimhaRaogovernmentconsideredanacceleratedprogramofnucleartests.However,India’stestpreparationsweredetectedbyU.S.intelligenceagencies,andtheresultantU.S.diplomaticpressureconvincedtheRaogovernmenttopostponethetests.
• PlansfortestingwererenewedwhenthegovernmentledbyAtalBihariin1998,authorizedtworoundsofnucleartestson11and13May1998,afterwhichitformallydeclaredIndiatobeanuclear-weaponstate.
• AlmostnooneoutsideofIndiaforesawthetestthatmarkedthearrivalofIndiaasanuclearweaponstate.
India’s nuclear efforts and its two adversaries
• India’s1998tests—combinedwithU.S.andinternational
www.amritaias.com | [email protected] | +91 85890 60000
58
effortsto“normalize”Indiaasaresponsiblenuclear-armedstate—reinvigoratedtheChina-Pakistanaxis.
• China’snuclearcooperationwithPakistanpredatedthesubcontinent’sovertweaponizationin1998andincludedthetransferofweapons-gradeuraniumandmobileM-11missiles.
• Yet,India’semergenceasanuclear-armedstatedidnothelpitovercomeChina’spolicyofkeepingtheIndia-Pakistanrelationshipinastateof“managedmistrust.”
• ThispolicyismanifestedinChina’sintenttore-hyphenateIndiatoPakistanbycontinuingtotransfermilitarytechnologytoPakistanandlinkingIndia’sNuclearSuppliersGroup(NSG)membershiptoPakistan’s.
• InMarchofthisyear,ChinaadmittedithadexportedanadvancedtrackingsystemthatcouldfacilitatethedevelopmentoftheAbabeel,Pakistan’sfirstmultiplewarheadmissiles.
• ChinahasalsosoldseveralnuclearreactorstoPakistanandopposedIndia’smembershiptotheNSGunlessPakistanisgrantedsimultaneousaccesstothecartelandnuclearcommercewithitsmembers.
How secure is India now?
• ItwouldbetooharshtoconcludethatIndiamadeamistakeintestingnucleardevicesin1998.
• Chinahadbeenanuclear-armedstatesince1965andPakistan’sbombhadbeeninthebasementforadecade.
• EvenifNewDelhihadoptedagainstcrossingthethresholdofovertweaponization,BeijingandIslamabadwouldhavelikelysoughttoforestallIndia’sriseasamajorpowerandkeepitconfinedtotheSouthAsianneighbourhood.
• However,India’sthreatenvironmentisnobetterthanin1998and,insomecases,itssecurityisworse.
• ThePakistanArmycontinuestoabetcross-bordermilitancyagainstIndiaandlowerthenuclearthresholdtolimitIndia’s
www.amritaias.com | [email protected] | +91 85890 60000
59
militaryoptions.
• ChinaappearsmoredeterminedthanevertopreventIndia’sriseasamajorpower,re-hyphenateIndiatoPakistan,andchallengeIndia’sinfluenceamongitsneighbours.
• ThelanguidpaceatwhichIndiahasdevelopedanddeployeditsarsenalindicatesitisnotinterestedinengagingChinaorPakistaninanuclearcompetition.Yet,IndianleadershavenotdoneenoughtoeithersurmountthesecuritychallengesposedbyitsadversariesorpositionIndiatorealizeitsfullpotentialinAsiaandbeyond.
• IndialagsbehindinChinainmostmeasuresof“usable”power—andnuclearweaponshavenotattenuatedthewideninggapineconomicvitality,diplomaticinfluence,andconventionalfirepowerbetweenthetwoAsiangiants.
India’s Military Doctrines
• ColdStartDoctrine
» TheSundarjiDoctrine(1981-2004)wasmadeupofsevendefensive“holdingcorps”oftheIndianArmyanddeployednearthePakistaniborder.Possessinglimitedoffensivepower,theholdingcorps’primaryresponsibilitywastocheckaPakistaniadvance.India’soffensivepotencywasderivedfromthe“strikecorps”,whichweremadeupofamechanisedinfantryandextensiveartillerysupport.
» ColdStartisamilitarydoctrinethatwasdevelopedbytheIndianArmedForcesforuseinapossiblewarwithPakistan.The‘ColdStart’doctrineoftheIndianArmedForcesenvisagesswiftdeploymentoftroopsonthewesternborderwithindays,ifasituationofafull-blownwararises.ThisdoctrineaimstoallowIndianforcestoconductsustainedattackswhilepreventinganuclearretaliationfromPakistan.TheoperationwouldbecarriedoutbyaunifiedbattlegroupinvolvingvariousbranchesofIndia’smilitary.Itcandeployafull-strengthinvasionforcewithinafewdaysnotice,unlikeseveralweeksof
www.amritaias.com | [email protected] | +91 85890 60000
60
preparationthatwererequiredearlier.
» Inresponsetothis,Pakistandevelopedtacticalnuclearweapons.
• IAEA:atotalof26Indiannuclearfacilitieswillbeundertheinternationalnuclearenergywatchdog.
• IAEAsafeguardsagreement
• NucleardealsofIndiawithdifferentnations:Indiasignedcivilnuclearagreementwithabout14countries.
Practice Question
I. WhatyoumeanbyColdStartdoctrine?DoesIndiahavethecapabilitytoadoptorexecutethisdoctrine?Criticallyexamine?(200words)
www.amritaias.com | [email protected] | +91 85890 60000
61
INDIA IRAN RELATIONS
Context
• TheUnitedStateshasexemptedIndiafromimpositionofcertainsanctionsforthedevelopmentofthestrategically-locatedChabaharportinIran,alongwiththeconstructionoftherailwaylineconnectingitwithAfghanistan.
• ThedecisionbytheTrumpadministrationisaseenasarecognitionbyWashingtonofIndia’sroleindevelopmentoftheportontheGulfofOman,whichisofimmensestrategicimportanceforthedevelopmentofwar-tornAfghanistan.
• ThesanctionscoverIran’sbankingandenergysectorsandreinstatepenaltiesforcountriesandcompaniesinEurope,AsiaandelsewherethatdonothaltIranianoilimports
10
Fate of Chabahar port
• Iran’sChabaharportislocatedontheGulfofOmanandistheonlyoceanicportofthecountry.
• Theportgivesaccesstotheenergy-richPersianGulfnations’southerncoastandIndiacanbypassPakistanwiththeChabaharportbecomingfunctional.
• ChabaharportwillboostIndia’saccesstoIran,thekeygatewaytotheInternationalNorth-SouthTransportCorridorthathassea,railandroadroutesbetweenIndia,Russia,Iran,EuropeandCentralAsia.
• ChabaharportwillbebeneficialtoIndiaincounteringChinesepresenceintheArabianSeawhichChinaistryingtoensurebyhelpingPakistandeveloptheGwadarport.
www.amritaias.com | [email protected] | +91 85890 60000
62
• WithChabaharportbeingdevelopedandoperatedbyIndia,IranalsobecomesamilitaryallytoIndia.
• TheimportcostofoiltoIndiawillalsoseeaconsiderabledecline.
• ChabaharportwillensureintheestablishmentofapoliticallysustainableconnectivitybetweenIndiaandAfghanistan.Thisiswill,inturn,leadtobettereconomictiesbetweenthetwocountries.
• Fromadiplomaticperspective,Chabaharportcouldbeusedasapointfromwherehumanitarianoperationscouldbecoordinated.
Oil waiver for India and others
• EightcountriesincludingIndiaaregettingconditionalwaiverfromtheUStobuyIranianoilafteritreimposedsanctionsonthePersianGulfnation.Thus,Indianoilimportershavesecuredtemporaryreprieve.
• Itisatemporaryallotmenttoahandfulofcountriesresponsibletospecificcircumstancesandtoensureawell-suppliedoilmarket.
• FindinganalternativesupplieratcompetitivetermsquicklyforIndiamaybetough.
• Pricesmaybeaffectedinthewakeofsanctions.
• WithIndia’sdomesticproductionunabletocatertothecountry’severincreasingdomesticdemand,thecountrywillcontinuetodependonimportsfortheforeseeablefuture.
• Indiahasbeentryingtodiversifyitssupplyportfolio,withfirmsstartingtosourceliquefiednaturalgasandoilfromtheUS.
• TheoptionsbeforeitincludeincreasingimportsfromsourcessuchastheUS,Iraq,SaudiArabia,Nigeria,Venezuela,andUAE.
• Indianrefineriesarecontinuouslyoperatinginlosses.TheproblemforIndianoilrefinersmaygetfurtherexacerbated
www.amritaias.com | [email protected] | +91 85890 60000
63
giventheslideintherupeethathasmadeitAsia’sworstperformingcurrencyoftheyear.
• AnyrallyinglobalcrudeoilpriceswillaffectIndia’soilimportbillandtradedeficit.
• EverydollarincreaseinoilpriceshasthepotentialtopushuptheimportbillbyaroundRs10,700croreonanannualbasis.
• Indianbasketofcrudeoil:whichrepresentstheaverageofOman,DubaiandBrentcrude,fellto$71.65abarrelon2November,accordingtothePetroleumPlanningandAnalysisCell.
Indio-Iran relations history
• SincePrehistorictimes,therehavebeenculturesimilaritiesbetweenPersia&India.Pre-Independence,IndiaandIranwereneighbouringnations.
• IndiaandIranhadbeenneighbourstill1947.IndependentIndiaandIranestablisheddiplomaticrelationsin1950.MohammadMosaddegh(thenPrimeMinisterofIran1952–53)admiredMahatmaGandhi.Manyoftheirtacticswereprettymuchakin.
• FollowingtheoverthrowofMossadeghin1953,IranwasruledunderShahMohammadRezaPahlavi.
• DuringmuchoftheColdWarperiod,relationsbetweentheRepublicofIndiaandtheformerImperialStateofIransufferedduetodifferentpoliticalinterestsprimarilyduetonon-alignedtacticofIndiathatnurturedstrongmilitarylinkswiththeSovietUnionwhileIranenjoyedclosetieswiththeUnitedStates.
• Shah’sIranhadtheheavyinfluenceoftheWestanditbecameamemberofvariousWestern-sponsoredregionalorganizationsliketheBaghdadPact,whileIndiawasmoretowardstheSovietUnionandtheNAM.
• Throughoutthe80s,IranandIraqwereinastateofwarandIraqwasthenaclosefriendofIndia.
• IndianPMNarasimhaRaovisitedIranin1993andsincethen,
www.amritaias.com | [email protected] | +91 85890 60000
64
relationshavebeenimproving.
• IranandIndiacloselycooperatedinsupportingtheNorthernAllianceinAfghanistanagainsttheTalibaninthe1990s.
• In2003,PresidentMohammadKhatamiofIranwastheChiefGuestforIndia’sRepublicDay.
• IranhasemergedasIndia’smostviabletransitoptionfortradewithCentralAsiaandRussia.India,RussiaandIransignedanagreementin2000forsendingIndianCargotoRussiaviaIranthrougha‘North-SouthCorridor’.
• Butin2006,IndiasupportedthetransferringofIran’sdossieronitsnuclearprogrammefromtheIAEAtoUNSecurityCouncil.ThiswasahugesetbacktoIndia-Iranrelations.
• Relationswerebackontrackin2008whenIranianPresidentMahmoudAhmadinejadcametoIndia,andIndiapromisedanindependentpolicytowardsIranandnotyieldtoUSpressure.
Iran is more than just an oil supplier to India
• IranensuresoverlandconnectivitybetweenEurasiaandIndiaanditisnotjustanenergysupplier.
• IranisalandpowerontheothersideofPakistanthatprovidesIndiawithanalternativeroutetoAfghanistan,astrategicnecessityforDelhi.
• Iranisageopoliticalentityinitsownright.
• IranhasborderswithalargenumberofcountriesthatIndiacouldnotaccessbecauseofthebarrierthatPakistanposedtoIndia’soverlandconnectivityplans.
• India’srelationshipwithIranhasbeenbuiltcarefullyandthoughtfullybyallpastgovernmentsasIranforIndiaisnotjustanenergysupplierfromthePersianGulfregion.
• India’sinfrastructure-buildingactivitiesinAfghanistanisdonewithsupportfromIran.
• IndiahasdisregardedpoliticalinclinationofthegovernmentinTehranwithaneyeontheoverallnecessityofthecountryfor
www.amritaias.com | [email protected] | +91 85890 60000
65
India’sstrategicsecurity.
Conclusion:
Both India and Iran seem to have come to the conclusion thattherearealargenumberofareasinwhichtheirinterestscoincideandconverge.Theyalsorecognizethattheyhavedivergentviewson some issues. Theyhence appear to have taken thedecisionto collaborate in sphereswhere they agree and hold frank andcandiddiscussionsonsubjectswhere theyhaveadifferenceofviewswhilenotallowingtheseissuestoblockorvitiatebilateralties.Theseriousnessofthetwocountriestostrengthenbilateralengagementisevidentfromthedecisionto“furtherintensifyanddiversifytheexistinghigh-levelengagementthroughfrequentandwiderrangeofbilateralexchangesatalllevels.
Practice Question
I. GeostrategicrealitywillensureIran’scontinuedimportancetoIndia.Comment(200words)
www.amritaias.com | [email protected] | +91 85890 60000
66
MSME: LOAN FOR MSME IN 59 MINUTES
Context
• TheIndiangovernmentannouncedthefulllaunchofanewportalthathelpsmicro,smallandmediumenterprisestoavailcreditwithinanhour.
• Smallbusinessescanusethe‘59-minute’portaltoavailloansofuptoRs1crore.
• Smallenterprisesregisteredunderthegoodsandservicestaxwillalsogeta2percenttaxrebateonincrementalloansofuptoRs1crore.
• TheportalissetupbytheissetupbytheSmallIndustriesDevelopmentBankofIndia(SIDBI).
• MSMEscanregisterandapplyforaloan.Theirapplicationgoestotwoorthreebankswiththeaimtogetthembestpossibleinterestratesfollowingwhichitreceivesanin-principleapproval.
• Mostofthepublicsectorbanksareonboardtheportal.
• ThegoodsandservicestaxcouncilhadalsosetupapanelofFinanceMinisterstolookintotheissuesthatthecountry’ssmallbusinesseswerefacing.
11
Background information
• MSMEaccountsformorethan45%oftotalmanufacturingoutputofthecountry,contributesaround9%toGDPandaccountsformorethan40%oftotalexportsofthecountry.
• Therearetotalaroundmorethan40millionsuchenterprisesinIndia(whichis2ndlargestafterChina)itemploysover11CrorepeopleinIndia.
www.amritaias.com | [email protected] | +91 85890 60000
67
Classifications of MSME
• DefinitionsofMicro,Small&MediumEnterprisesInaccordancewiththeprovisionofMicro,Small&MediumEnterprisesDevelopment(MSMED)Act,2006theMicro,SmallandMediumEnterprises(MSME)areclassifiedintwoClasses:
• ManufacturingEnterprises-heenterprisesengagedinthemanufactureorproductionofgoodspertainingtoanyindustryspecifiedinthefirstscheduletotheindustries(Developmentandregulation)Act,1951)oremployingplantandmachineryintheprocessofvalueadditiontothefinalproducthavingadistinctnameorcharacteroruse.TheManufacturingEnterpriseisdefinedintermsofinvestmentinPlant&Machinery.
• ServiceEnterprises:-Theenterprisesengagedinprovidingorrenderingofservicesandaredefinedintermsofinvestmentinequipment.
• Thelimitforinvestmentinplantandmachinery/equipmentformanufacturing/serviceenterprises
A. Manufacturing Enterprises
» MicroEnterprises:Lessthan25Lakhrupees.
» SmallEnterprises:Morethan25Lakhrupeesbutlessthan5Crorerupees.
» MediumEnterprises:Morethan5Crorerupeesbutlessthan10Crorerupees.
B. Service Enterprises
» MicroEnterprises:Lessthan10Lakhrupees.
» SmallEnterprises:Morethan10Lakhrupeesbutlessthan2Crorerupees.
» MediumEnterprises:Morethan2Crorerupeesbutlessthan5Crorerupees.
NEW DEFINITION FOR MSMEs
www.amritaias.com | [email protected] | +91 85890 60000
68
• Thegovernmenthasgivenanewturnover-basedclassificationofMSMEsinFebruary2018.
• Asperthisnewclassification,theMSMEsarecategorizedintermofbusinessturnover.Thisisinplaceofthepreviousclassificationbasedoninvestmentmadeinplantandmachineriesiftheyareoperatinginthemanufacturingsectorandinvestmentinequipmentforservicesectorcompanies.
• Asperthenewclassification,thesameturnoverbasedcriteriahavebeenappliedforalltypeofMSMEsincludingthoseoperatingintheservicessector.
• ThoughtheprimaryresponsibilityofpromotionanddevelopmentofMSMEsisoftheStateGovernments,theCentrehaspassedanActin2006toempowerthesectorandalsohasformedaministry(MinistryofMSMEs).ItwastheMicro,SmallandMediumEnterprisesDevelopment(MSMED)Actwhichwasnotifiedin2006thatdefinedthethreetiersofmicro,smallandmediumenterprisesandsetinvestmentlimits.ThenewturnovercriteriawillbettersuitwiththeGSTNetwork(GSTN)andotherformatsofsegregatingtheMSMEs.
The new turnover based classification of MSMEs
TheMicro,SmallandMediumEnterprisesDevelopment(MSMED)Act,2006willaccordinglybeamendedtodefineunitsproducinggoodsandrenderingservicesintermsofannualturnoverasfollows:
• AmicroenterprisewillbedefinedasaunitwheretheannualturnoverdoesnotexceedRs5crores;
• AsmallenterprisewillbedefinedasaunitwheretheannualturnoverismorethanRs5crorebutdoesnotexceedRs75crore;
• AmediumenterprisewillbedefinedasaunitwheretheannualturnoverismorethanRs75crorerupeesbutdoesnotexceedRs250crore.
Additionally, the Central Governmentmay, by notification, varyturnoverlimits,whichshallnotexceedthricethelimitsspecifiedinSection7oftheMSMEDAct.
www.amritaias.com | [email protected] | +91 85890 60000
69
Under the previous classification a separate methodology wasadoptedforservicesector.NowtheclassificationwasmadesimilartothegoodsMSMEsasthegeneralturnover-basedcriteriawasmadeapplicabletoservicesectoralso.
Acts related to MSME
• TheCoirIndustryAct,1953
• Micro,SmallandMediumEnterprisesDevelopment(MSMED)Act,2006.
• Khadi&VillageIndustriesCommissionAct,1956-(Amendment)Act,2006w.e.f.15may2006and17March2008(Acts)
Related organisations
• OfficeofDevelopmentCommissioner(MSME):DevelopmentCommissionerateimplementsthepoliciesandvariousprogrammes/schemesforprovidinginfrastructureandsupportservicestoMSMEs.
• Khadi&VillageIndustriesCommission(KVIC)establishedundertheKhadiandVillageIndustriesCommissionAct,1956(61of1956),isastatutoryorganizationundertheaegisoftheMinistryofMSME.
• TheCoirBoardisastatutorybodyestablishedundertheCoirIndustryAct,1953forpromotingtheoveralldevelopmentofthecoirindustryandimprovementofthelivingconditionsoftheworkersengagedinthistraditionalindustry.
• NationalSmallIndustriesCorporation(NSIC)isanISO9001-2008certifiedGovernmentofIndiaEnterpriseunderMinistryofMicro,SmallandMediumEnterprises(MSME).NSIChasbeenworkingtopromoteaidandfosterthegrowthofmicro,smallandmediumenterprisesinthecountry.
• NIMSMEwasoriginallysetupasCentralIndustrialExtensionTrainingInstitute(CIETI)inNewDelhiin1960underthethenMinistryofIndustryandCommerce,GovernmentofIndia.TheInstitutewasshiftedtoHyderabadin1962asaregistered
www.amritaias.com | [email protected] | +91 85890 60000
70
societyinthenameofSmallIndustryExtensionTrainingInstitute(SIET).
• MahatmaGandhiInstituteofRuralIndustrialisation(MGIRI)TheexistingJamnalalBajajCentralResearchInstitute(JBCRI),WardhawasrevampedwiththehelpofIIT,DelhiasanationallevelinstituteundertheMinistryofMSMEinOctober2008calledMahatmaGandhiInstituteforRuralIndustrialization(MGIRI).
Recent government initiatives
• PublicProcurementPolicy2012:EachMinistry/PSUshallsetanannualgoalandprocureminimum20%fromMSMEwithin3years.
• InmanyFDIproposalssuchasFDIinRetail,thereisclausethat20-30%inputsshallbeprocuredonlyfromMSME.
• LabourReforms:IntroductionofShramSuvidhaPortaltocompliancewithlabourlaws,flexible&timeboundlabourinspectionschemeandUniqueLabouridentificationnumber(LIN)toeveryunit.
• MudraScheme:Thisisthefirstevercreditschemedesignedformicroentrepreneursorhouseholdenterprises.Lesserdocumentsformality,nocollateralandcheapinterestratearesomeofthemajorfeaturesofthisscheme.ConnectinglastmilefinancierwithMudrabankisanotherremarkablefeatureoftheschemetoprovidecreditfacilitytoeachhouseholdenterprise.
• UdyogAadhaarMemorandum(UAM):Thisisapathbreakingsteptopromoteease-of-doing-businessforMSMEsinIndiaastheUAMreplacesthefilingofmanualEntrepreneurs’Memorandum(EMpart-I&II)withonlinefacilityoffilingEMandeachMSMEtoinstantlygetauniqueUdyogAadhaarNumber(UAN).Theinformationsoughtisonself-certificationbasisandnosupportingdocumentsarerequiredatthetimeofonlinefilingofUAM.
• ASchemeforPromotionofInnovation,RuralIndustryandEntrepreneurship(ASPIRE).ASPIREhasbeenlaunched
www.amritaias.com | [email protected] | +91 85890 60000
71
withanobjectivetosetupanetworkoftechnologycenters,incubationcenterstoaccelerateentrepreneurshipandalsotopromotestart-upsforinnovationandentrepreneurshipinruralandagriculturebasedindustrywithafundofRs210Cr.
• SchemeofFundforRegenerationofTraditionalIndustries(SFURTI):TheobjectivesofSFURTIistoorganizethetraditionalindustriesandartisansintoclusterstomakethemcompetitiveandprovidesupportfortheirlongtermsustainabilitybywayofenhancingthemarketabilityofproducts,improvingtheskillsofartisans,makingprovisionforcommonfacilitiesandstrengtheningtheclustergovernancesystems.
• StandUpIndia:Recentlygovernmentapproved“Stand-UpIndiaScheme”topromoteentrepreneurshipamongSC/STandWomenentrepreneurs.TheSchemeisintendedtofacilitateatleasttwosuchprojectsperbankbranch,onanaverageoneforeachcategoryofentrepreneur.Itisexpectedtobenefitatleast2.5Lakhborrowersintimelimitof36monthsfromthelaunchoftheScheme.
• CreditLinkedCapitalSubsidyScheme:ithasbeenimplementedbythegovernmentforup-gradationoftechnology.Underthis15%(subjecttomaximumofRs.15.00lakhs)upfrontsubsidyoncapitalinvestmentfortechnologyupgradationisprovidedtomicroandsmallenterprisesformodernizationoftheirproductionequipment(plantandmachinery).
Issues in MSME sector
• LackofFinance:Itisestimatedthatmorethan90%MSMEsdoesnothaveaccesstoinstitutionalfinanceanddependentonlocalfinancesuchasrelativesormoneylenderswhereinterestcostisgenerallyonhigherside.However,governmenthavestartedlotsofschemetoprovideinstitutionalfinancetoMSMEs.ButcorruptionandlongproceduresmakesitdifficultforMSME’stoavailthebenefitsoftheseschemes.
• LackofBasicInfrastructure:MSMEsaregrowingrapidlybutdoesnothaveaccesstobasicinfrastructuresuchaspower,
www.amritaias.com | [email protected] | +91 85890 60000
72
water,roadorconnectivitytotowns,telecom,etc.FurthergovernmentsupportislimitedinprovidingbasicinfrastructurefacilitiestoMSMEsinallareasofthecountry.
• AccesstoMarket:Indigitalera,marketingplaysasignificantplacebutduetolackoffundsandprofessionalknowledge,MSMEsadoptpooradvertisementandsellingmethodologieswhichrestrictthereachoftheirproductsdespiteofgoodquality.FurtherthereispoorlinkagebetweenHeavyindustriesandMSMEstoselltheirproducts.
• AccesstoModernTechnology:TheownersofMSMEsarenotawareofadvancedtechnologiesofproduction.Theirmethodologyofproductionisoutdatedwhichcauselowqualityproductionathighercost.
• LabourLaws:Allthelawsrelatedtoallaspectsofmanufacturingandserviceconcernareverycomplexandcompliancewiththeselawsispracticallydifficult.Thevariousdecisionsoffactoriesaredependentonthefactorycommissionerandinspector.So,therearechancesofredtapeintheoperationofMSMEs.
• AccesstoRawmaterialandOtherInputs:MSMEsrequirerawmaterial,skilledworkforceandotherinputs,whicharenotavailableinthemarket.Duetounavailabilityoftheseessentials,itisverydifficulttoproducetheproductsataffordableprices.
• LackofSkilldevelopmentandtraining:MSME’sentrepreneursaregenerallynotwelleducatedandskilledintheirfieldareawhichrestrictedquantityandqualityofoutputofMSME’s.TheskilldevelopmentalschemesconductedbythegovernmentarenotsufficienttoaddresstheskillingissuesofMSME’s.
• Theexistingmechanismforaddressingrevival,rehabilitationandexitofsmallenterprisesisveryweakinthecountry.ThemostrecentDoingBusiness(DB)ReportranksIndia130outofthe189economiesforresolvinginsolvencies.Itnotesthatresolvinginsolvencytakes4.3yearsonaverageandcosts9.0%ofthedebtor’sestate.
www.amritaias.com | [email protected] | +91 85890 60000
73
• Poortaxstructure,highlevelcompetitionwithMNC’sandlargeindustriesareothermajorproblemsfacedbyMSMEsector.
What need to be done
• Taxreforms:ThereisneedtorolloutGSTtosimplifytaxstructureandtoreducetaxspendingofMSME’s.FurtherthereisneedtoprovidetaxincentivestoMSMEsectorsuchasincreasetaxexemptionlimittoavoidtaxevasion.
• IndustrialTrainingInstitutesandmanagementschools:Thereisneedtoestablishnewindustrialschoolsorupgradepreviousonestoincludemodulesonmanagement,labourlaws,accounting,financialmarkets,andprocurementandmarketingskills.
• PromoteR&D:Tocomplywithrapidlygrowingandchangingworld,thereisneedtopromoteR&DinMSMEsectorsothatnewproductscanbedevelopedsuchasPhulkariofPunjab,bambooworksofAssam,etc.
• E-CommerceandMarketing:Ratherthandependingonprivatee-commercecompaniesonly,governmentshallendeavourtocreateadedicatede-commerceplatformformarketingofMSMEsector.
• Bankruptcycodetomakeinsolvencyprocedureisalsoneedofthehourtoreduceexittimeandcapitalofentrepreneurs.
Practice Question
MSME sector could act as the engine for economic growth byproducingemploymenttomillionsbutit ismarredwithmultipleissues.DoyouthinkthepresentlevelsofGovernmentinterventionsarehelpfulinmakingtheminrealisetheirobjectives?(250words)
www.amritaias.com | [email protected] | +91 85890 60000
74
SPECIAL STATUS OF STATES
Context
• Odishatocontinuedemandforspecialcategorystatus.
12
Special Status for states
• Theconceptofaspecialcategorystatewasfirstintroducedin1969whenthe5thFinanceCommissionsoughttoprovidecertaindisadvantagedstateswithpreferentialtreatmentintheformofcentralassistanceandtaxbreaks.
• InitiallythreestatesAssam,NagalandandJammu&Kashmirweregrantedspecialstatusbutsincetheneightmorehavebeenincluded(ArunachalPradesh,HimachalPradesh,Manipur,Meghalaya,Mizoram,Sikkim,TripuraandUttarakhand).
• Therationaleforspecialstatusisthatcertainstates,becauseofinherentfeatures,havealowresourcebaseandcannotmobilizeresourcesfordevelopment.
The criteria for granting special status are as follows
• Someofthefeaturesrequiredforspecialstatusare:
» hillyanddifficultterrain;
» lowpopulationdensityorsizeableshareoftribalpopulation;
» strategiclocationalongborderswithneighbouringcountries;
» economicandinfrastructuralbackwardness;
» Non-viablenatureofstatefinances.
• ThedecisiontograntspecialcategorystatuslieswiththeNationalDevelopmentCouncil,composedofthePrime
www.amritaias.com | [email protected] | +91 85890 60000
75
Minster,UnionMinisters,ChiefMinistersandmembersofthePlanningCommission,whoguideandreviewtheworkofthePlanningCommission.
• TheSpecialCategoryStateshavesomedistinctcharacteristics.Theyhaveinternationalboundaries,hillyterrainsandhavedistinctlydifferentsocio-economicdevelopmentalparameters.
• TheseStateshavealsogeographicaldisadvantagesintheireffortforinfrastructuraldevelopment.PublicexpenditureplaysasignificantroleintheGrossStateDomesticProductofthestates.
• ThestatesintheNorth-Eastarealsolatestartersindevelopment.Inviewoftheaboveproblems,Centralgovernmentsanctions90percentintheformofgrantsinplanassistancetotheStatesinspecialcategory.
• Themostimportantprescriptionforspecialcategorystatesisinterestfreeloanwithrationalizationofpublicexpenditurebasedongrowthenhancingsectoralallocationofresources.
Advantages of getting special category status
• Preferentialtreatmentinfederalassistanceandtaxbreak.
• Significantexcisedutyconcessions.Thus,thesestatesattractlargenumberofindustrialunitstoestablishmanufacturingfacilitieswithintheirterritoryleadingtotheireconomyflourishing.
• Thespecialcategorystatesdonothaveahardbudgetconstraintasthecentraltransferishigh.
• Thesestatesavailthemselvesofthebenefitofdebtswappinganddebtreliefschemes(throughtheenactmentofFiscalResponsibilityandBudgetManagementAct)whichfacilitatereductionofaverageannualrateofinterest.
• Significant30%oftheCentre’sgrossbudgetgoestotheSpecialCategoryStates.
• InCentrallySponsoredSchemesandexternalaid,SpecialCategoryStatesgetitintheratioof90%grantsand
www.amritaias.com | [email protected] | +91 85890 60000
76
10%loans.Fortherestofthestates,itisaspertherecommendationsofthe12thFinanceCommission.IncaseofCentrallySponsoredSchemes,only70%centralfundingisthereintheformofgrant.TherestoftheStatesreceiveexternalaidintheexactratio(ofgrantsandloans)inwhichitisreceivedbytheCentre.
Raghuram Committee recommendations
• RaghuramCommitteeproposedchangesinprovidingspecialstatus.Theproposedmethodologyallocatesfundsacrossstatesbasedonneedthusunderdevelopmentindexhasbeenconstructed.
• TheunderdevelopmentindextheCommitteeproposesincludesthefollowingtensub-components:(i)monthlypercapitaconsumptionexpenditure,(ii)education,(iii)health,(iv)householdamenities,(v)povertyrate,(vi)femaleliteracy,(vii)percentofSC-STpopulation,(viii)urbanizationrate,(viii)financialinclusion,and(x)connectivity.
• TheCommitteerecommendsthat“leastdeveloped”states,asidentifiedbytheindex,beeligibleforotherformsofcentralsupportthattheCentralGovernmentmaydeemnecessarytoenhancetheprocessofdevelopment.
• FollowingtheconstitutionoftheNITIAayog(afterthedissolutionofthePlanningCommission)andtherecommendationsoftheFourteenthFinanceCommission(FFC),CentralplanassistancetoSCSStateshasbeensubsumedinanincreaseddevolutionofthedivisiblepooltoallStates(from32%inthe13thFCrecommendationsto42%)anddonotanylongerappearinplanexpenditure.
14the finance commission recommendations on special status of states
• 14thFinanceCommissionheadedbyYVReddysubmitteditsreportin2014.
• ItredefinedthefinancialrelationshipbetweentheCentreandthestatesforthefive-yearperiodending2019-20.
www.amritaias.com | [email protected] | +91 85890 60000
77
• TheCommissionnotablydidawaywiththe‘specialcategory’statusforstates,exceptfortheNorth-easternStatesand3hillstates(J&K,HimachalPradeshandUttarakhand).
• Instead,itsuggestedthattheresourcegapofeachstatebefilledthrough‘taxdevolution’.
• ItthusurgedtheCentretoincreaseitsshareoftaxrevenuestothestatesfrom32%to42%.
• Ifdevolutionalonecouldnotcovertherevenuegapforcertainstates,theCentrecouldprovidearevenuedeficitgrant.
• TheCommissionstatedthatAndhraPradeshwouldendupasarevenuedeficitstate.
• ItthusrecommendedthattheCentreprovidearevenuedeficitgrantfortheperiodofthe14thFinanceCommission.
Recent demands for special category status
• AndhraPradeshandTelanganademandthisstatussinceitsinception.
• Orissahasbeenaskingitsince1968.
Conclusion
The State governments shouldmove forward by implementingwider reforms and more equitable investment throughout thestates. The 14th Finance Commission has already blunted thebenefitoftheSCStag.Competitivefederalismwillbeanon-starterifstatesdon’tweanthemselvesoffcentrallargesse.
Practice Question
I. DemandforSpecialcategorystatusisagainsttheco-operativeandcompetitivefederalism.Discuss(250words)
www.amritaias.com | [email protected] | +91 85890 60000
78
BID TO REVIVE INSURGENCY IN PUNJAB
Context
• Attemptsarebeingmadethrough“externallinkages”to“reviveinsurgency”inPunjab,andifearlyactionisnottaken,itmaybetoolate,ArmychiefGen.BipinRawat.
13
History of Insurgency
• TheinsurgencyinPunjaboriginatedinthelate1970s,wasathreattotheunityandintegrityofIndiaduetothemilitantSikhethno-nationalismknownasKhalistanmovement.
• Inthe1980sthemovementhaddevelopedintoasecessionistmovementundertheleadershipofJarnailSinghBhindranwale.
• PakistanistrategiststhenbegansupportingthemilitantdimensionoftheKhalistanmovement
• In1972Punjabstateelections,CongresswonandAkaliDalwasdefeated.In1973AkaliDalputforwardtheAnandpurSahibResolutiontodemandmoreautonomytoPunjab.
• BhindranwalethenjoinedtheAkaliDaltolaunchtheDharamYudhMorchain1982,toimplementAnandpurSahibresolution.
• Bindranwalealsoincreasedthelevelofrhetoricontheperceived“assault”onSikhvaluesfromtheHinducommunity.
• In1983,toescapearrest,healongwithhismilitantcadreoccupiedandfortifiedtheSikhshrineAkalTakht.
• HemadetheSikhreligiousbuildinghisheadquartersandledtheterroristcampaigninPunjab.
• On1JuneOperationBlueStarwaslaunchedtoremovehimandthearmedmilitantsfromtheGoldenTemplecomplex.On6June,Bhindranwalediedintheoperation.
www.amritaias.com | [email protected] | +91 85890 60000
79
• Fourmonthsaftertheoperation,on31October1984,IndiraGandhiwasassassinatedinvengeancebyhertwoSikhbodyguards,SatwantSinghandBeantSingh.
• TheextremistviolencehadstartedwithtargetingoftheNirankaris,followedbyattackonthegovernmentmachineryandtheHindus.
Aftermath of it Insurgency
• Thesituationinthestatedidnotreallyimprove.
• Punjabaccord,alsoknownastheRajiv-LongowalAccord,isanaccordsignedbyRajivGandhiandHarcharanSinghLongowalon24July1985.ThegovernmentacceptedthedemandsofAkaliDalwhointurnagreedtowithdrawtheiragitation.
• Provisionsincludescompensationtovictims,reservationsinarmyrecruitments,rehabilitation,enquiryinto1984killings,AllIndiaGurudwaraact,promotionofPunjabietc.
• ThatperiodcoincidedwithpoliticalinstabilityattheverytopinNewDelhiwheretheRajivGandhigovernmentgotembroiledintheBoforscaseandlostthe1989GeneralElections.
• ThesucceedingVPSinghgovernmentwasunstable,aswasthatofChandrashekhar’s.
• ThecountrywaswrackedbytheMandalandMandiragitationsandcametothebrinkofeconomiccollapse.
• Thecountry’sarmywasinvolvedintheSriLankaoperations,besidestryingtocopewiththechallengefromPakistanandtheULFAintheNorth-east.
Khalistan Liberation Force (KLF)
• TheKhalistanLiberationForce,whichHarminderSinghMintoocurrentlyhead,wasonesuchSikhmilitantgroup.
• Itwasfoundedin1986byAroorSinghandSukhwinderSinghBabbar.In1995,theKLFwaslistedasoneamongfourmajormilitantgroupsintheKhalistanmovement.
www.amritaias.com | [email protected] | +91 85890 60000
80
• Overtheyearstheyhavebeeninvolvedinanumberofterroristactivitiesandassassinations,particularlyinPunjab.
Recent developments
• Pro-KhalistanrallyorganisedrecentlyinLondonfor‘Referendum2020.’HundredsofpeoplehadturnedoutatTrafalgarSquareinLondononAugust12insupportofapro-KhalistanrallyaswellastocountertheeventwithanIndependenceDaycelebration.
• CanadianPMvisitandthewelcome“indicating”India’sdispleasureoverMrTrudeauattendinganeventorganisedbySikhsinTorontolastMaythatfeaturedpostersandflagsdemandingtheSikhhomelandofKhalistan.
Way forward
• Insurgencycouldnotbedealtwiththemilitaryforcealone.Anapproachinwhichallagencies:thegovernment,theciviladministration,theArmyandthepoliceworkinginanintegratedmannerisneeded.
• ProgrammeslikelayingthefoundationstoneoftheDeraBabaNanak-KartarpurSahibCorridor(uptotheInternationalBorder)ataneventatMannvillageofGurdaspurdistrictofPunjabbuildstrustandconfidenceamongtheSikhcommunity.
• TheantiSikhriotvictimsshouldbeprovidedjusticeasearlyaspossible.
Conclusion
TherecentincidentstoreviveinsurgencyinPunjabhaveadirectimplicationover the internalsecurityof thecountry.TherehavebeenconsistenteffortsbytheISItorevivetheinsurgencytopropelterrorinthecountry.Asasecessionistmovementwithitsnature,KalisthanMovementhavetobecheckedasearlypossible.
www.amritaias.com | [email protected] | +91 85890 60000
81
TRAGIC ENCOUNTER OF AVNI
Context
• TigressAvnishotdeadinlatenightencounternearMumbai
14
Why are tigers important
• Tigersarean“umbrellaspecies”–meaningtheirconservationalsoconservesmanyotherspeciesinthesamearea.
• Theyhavegreatculturalandhistoricalsignificance.
• Theyarealsocrucialfortheecosystemsinwhichtheylive.Astoppredatorsofthefoodchain,tigerskeeppopulationsofpreyspeciesincheck,whichinturnmaintainsthebalancebetweenherbivoresandthevegetationuponwhichtheyfeed.
The five big cats in India
• Theterm“bigcat”istypicallyusedtorefertoanyofthefivelivingmembersofthegenusPanthera,namelytiger,lion,jaguar,leopardandsnowleopard.Exceptthesnowleopard,thesespeciesareabletoroar.
• AmoreliberalandexpansivedefinitionofthetermincludesspeciesoutsideofPantheraincludingthecougar,cloudedleopard,Sundacloudedleopardandcheetah,althoughtheseaddedspeciesalsodonotroar.
• IndianleopardisoneofthebigcatsoccurringontheIndiansubcontinent,apartfromtheAsiaticlion,Bengaltiger,snowleopardandcloudedleopard.
• Lionandtiger:IUCNstatus-Endangered.
• Indianleopard,SnowleopardandCloudedleopard-Vulnerable.
www.amritaias.com | [email protected] | +91 85890 60000
82
National Tiger Conservation Authority
• ItisastatutorybodyundertheMinistryofEnvironment,ForestsandClimateChangeconstitutedunderenablingprovisionsoftheWildlife(Protection)Act,1972,asamendedin2006,forstrengtheningtigerconservation,asperpowersandfunctionsassignedtoitunderthesaidAct.
• TheNationalTigerConservationAuthorityissetupundertheChairmanshipoftheMinisterforEnvironmentandForests.
• TheAuthoritywillhaveeightexpertsorprofessionalshavingqualificationsandexperienceinwildlifeconservationandwelfareofpeopleincludingtribals,apartfromthreeMembersofParliamentofwhomtwowillbeelectedbytheHouseofthePeopleandonebytheCouncilofStates.
• TheInspectorGeneralofForests,inchargeofprojectTiger,willbeex-officioMemberSecretary.
Project tiger
• AimsatconservingIndia’snationalanimali.e.Tiger.
• Launchedin1973
• Currentlythereare47tigerreserves
• Thetigerreservesareconstitutedonacore/bufferstrategy.
» Thecoreareashavethelegalstatusofanationalparkorasanctuary,whereasthebufferorperipheralareasareamixofforestandnon-forestland,managedasamultipleusearea.
» TheProjectTigeraimstofosteranexclusivetigeragendainthecoreareasoftigerreserves,withaninclusivepeopleorientedagendainthebuffer.
• ItisaCentrallySponsoredSchemeoftheMinistryofEnvironment,ForestsandClimateChangeprovidingcentralassistancetothetigerStatesfortigerconservationindesignatedtigerreserves.
• TheNationalTigerConservationAuthority(NTCA)isa
www.amritaias.com | [email protected] | +91 85890 60000
83
statutorybodyoftheMinistry,withanoverarchingsupervisory/coordinationrole,performingfunctionsasprovidedintheWildlife(Protection)Act,1972.
• Wildtigersarefoundin18StatesinIndia
• TheAllIndiatigerestimationiscarriedoutonceineveryfouryears.
Recent tiger reserves
• Sofar50tigerreserveshavebeenconstituted.
• LatestonesareOrang(2016)inAssamandKamlang(2016)inArunachalPradesh.
International efforts to tiger protection
• TheInternationalTigerDay(alsoknownasGlobalTigerDay)iscelebratedeveryyearon29Julytoraiseawarenessfortigerconservation.
• TheInternationalTigerDaywasfoundedin2010attheSt.PetersburgTigerSummit.ThesummithadissuedSt.PetersburgDeclarationonTigerConservationwithanaimtodoublethebigcatpopulationby2022.
• Tx2:Tigerrangegovernmentscametogetherforthefirsttimeanddecidedthatbusiness-as-usualapproacheswerenotworking.All13tigerrangegovernmentscommittedtothemostambitiousconservationgoalsetforasinglespecies–todoublethenumberofwildtigersby2022,thenextChineseYearoftheTiger.
• Therearecurrently13tigerrangecountries;Bangladesh,Bhutan,Cambodia,China,India,Indonesia,LaoPDR,Malaysia,Myanmar,Nepal,Russia,ThailandandVietNam.
• Despiteconservationeffortssincethe1970s,wildtigerpopulationsdidnotstopdeclining.
• Worldtigerpopulationisnowestimatedtobearound3900.
• TacklingtheillegalwildlifetradethroughourpartnershipwithTRAFFIC.
www.amritaias.com | [email protected] | +91 85890 60000
84
Challenges in tiger conservation
• protectionagainstpoaching,
• fragmentationofhabitat,
• securinginviolatespacefortigertofacilitateitssocialdynamics,
• addressingtiger-humaninterface,
• restorationofcorridorsandelicitingpublicsupportoflocalpeoplebyprovidingecologicallysustainableoptions.
Way forward
• Tigersarecatsandthereforebreedeasily.Givenadequatespace,preybaseandprotection,thewildtigerpopulationcanincrease
• Globalpoachinglevelshavereachedcriticallevels.Organisedcriminalgangsareincreasinglyinvolvedintheillegalwildlifetradedrivenbyademandfortigerparts.Tigergovernmentsmustcombatpoachingiftigersaretohaveafuture.
• 6,000+wildtigersistheglobalgoalsetattheTigerSummitandthegoalWWFisdedicatedto.
• Drivingpoliticalmomentumtoensuretigersremainatoppriorityforworldleaders.
www.amritaias.com | [email protected] | +91 85890 60000
85
INTERMEDIATE-RANGE NUCLEAR FORCES TREATY
Context
• U.S.PresidentDonaldTrumpdeclaredthattheU.S.isquittingtheIntermediate-RangeNuclearForces(INF)Treaty,abilateralagreementwithRussiasignedin1987.
• ThedecisionwasnotunexpectedsincetheU.S.haslongmaintainedthatRussiahasbeenviolatingthetreatyandMr.Trumphasbeencriticalofarmscontrolagreementsbecause,accordingtohim,othercountriescheat,puttingtheU.S.atadisadvantage.
15
Recent developments
• RussiahasraisedthepossibilityofwithdrawingfromtheINFTreaty.Moscowcontendsthatthetreatyunfairlypreventsitfrompossessingweaponsthatitsneighbours,suchasChina,whoaredevelopingandfielding.
• RussiaalsohassuggestedthattheproposedU.S.deploymentofstrategicanti-ballisticmissilesystemsinEuropemighttriggeraRussianwithdrawalfromtheaccord,presumablysoMoscowcandeploymissilestargetinganyfutureU.S.anti-missilesites.
• Still,theUnitedStatesandRussiaissuedanOctober25,2007,statementattheUnitedNationsGeneralAssemblyreaffirmingtheir“support”forthetreatyandcallingonallotherstatestojointheminrenouncingthemissilesbannedbythetreaty.
Background of the treaty
• TheINFtreatyhasitsoriginsintheEuromissilecrisisofthelate1970sandearly1980s.TheSovietUnion’sdeploymentoftheSS-20,anadvancedandaccuratemissilethatcouldstrike
www.amritaias.com | [email protected] | +91 85890 60000
86
mostofEuropefromdeepwithinRussiaalarmedEurope.
• Americahadshort-rangemissilesinEurope,whichcouldnotreachSovietterritory,andlong-rangeonesathomeandaboardsubmarines,butnothinginthismiddlecategory;iftheSovietsattackedEuropewiththeSS-20,Americawouldbeforcedtoescalatetoitsbiggestweapons.
• Europeanalliesfrettedthatitwouldnotdoso.Toassuagetheseconcerns,andtoforcetheSovietUniontochangecourse,AmericadeployedthePershingIIballisticmissileandanewground-launchedcruisemissileintoEurope.
• That,inturn,worriedtheSovietUnion.ThesecouldreachMoscowinundertenminutes,potentiallyforcingleadersintoapanickyresponse.
• Anti-nuclearprotestseruptedacrossEuropeasthenewmissilesrolledin.TheINFtreatycutthroughthisknot.
• ItprohibitednotonlytheoffendingSovietandAmericanmissilesbutalsotheflight-testing,developmentanddeploymentofallground-basedmissileswithrangesbetween300and3,300miles.Almost3,000existingweaponsweredestroyed,withtheSovietUniongettingridoftwiceasmany.
Intermediate-Range Nuclear Forces Treaty
• TheIntermediate-RangeNuclearForcesTreaty(INFTreaty,formallyTreatyBetweentheUnitedStatesofAmericaandtheUnionofSovietSocialistRepublicsontheEliminationofTheirIntermediate-RangeandShorter-RangeMissiles)isa1987armscontrolagreementbetweentheUnitedStatesandtheSovietUnion.
• UndertheINFTreaty,theU.S.andtheU.S.S.R.agreedtoeliminatewithinthreeyearsallground-launched-missilesof500-5,500kmrangeandnottodevelop,produceordeploytheseinfuture.
• TheU.S.destroyed846PershingIIsandGroundLaunchedCruiseMissiles(GLCMs)andtheU.S.S.R.,1,846missiles(SS-4s,SS-5sandSS-20s),alongwithitssupportfacilities.
www.amritaias.com | [email protected] | +91 85890 60000
87
Importance of the Intermediate Nuclear Forces (INF) Treaty in U.S.-Russia relations
• UndertheTreaty,thetwopartiesagreedthatawholeimportantclassofnuclearweaponswouldberemovedfromEurope,andonlytacticalnuclearweapons(TNW)orshort-rangemissilesmostlydeployedontheterritoryofGermanywouldremain.
• TheINFTreatyforyearsservedtomitigatefearsofbothpartiesinrelationtopossibilityofmilitaryescalation,operationalmiscalculation,andhelpingtoshiftthelogicofMAD[mutuallyassureddestruction]tothehigher“moresensitive”politicallevel.
Adverse consequence of the present decision by Mr. Trump
• Mr.Trump’sdecisionhasgenerateddismayandconcernthatthiswilltriggeranewnucleararmsraceinEuropeandelsewhere.
• WhatitignoresisthattheINFTreatyreflectedthepoliticalrealityoftheColdWarofabi-polarworldwithtwonuclearsuperpowers,nolongerconsistentwithtoday’smulti-polarnuclearworld.
• Thegreaterchallengetodayistounderstandthatexistingnucleararmscontrolinstrumentscanonlybepreservediftheseevolvetotakenewrealitiesintoaccount.
What is the impact of U.S. withdrawal from the INF Treaty on China?
• Intermediate-rangemissilesystemsandcruisemissileswouldconsiderablyenrichU.S.capabilitiesinapotentialclashoverTaiwanorothercontentiousstrategicissue.
• AsthePLAofChinahasavarietyofcruisemissilesthatcanbelaunchedfromland,air,sea,andsub-surfaceplatforms,returningtointermediate-rangesystemswouldequipAmericanforceswiththecapabilitytostriketargetsthatarehighlydifficulttopenetrateforconventionalweaponsatpresent.
www.amritaias.com | [email protected] | +91 85890 60000
88
• Meanwhile,vectoralenhancementofpoliticalrelationswithstatesallovertheworld,particularlythosethatareeconomicallyandpoliticallyaffiliatedtoChina,withpossibleshowsofeconomicmightanddeeperengagementonthefieldofsecurity.
• AllthiswillserveasacatalystofeconomicallegianceandaprobeofAmerica’ssecuritycreed,especiallyintheregionofthePacificandAsia.
• Nevertheless,joiningthearmsraceinAsiamayleadChinaintoatrapof“competitivestrategy.”
Foreign and security policy consequences for U.S. nuclear deterrence in the absence of the INF treaty
• LeavingtheINFTreatywouldallowtheU.S.tobalancethemilitarytechnologygapwiththeseassets,whichhasgrownsince1980,especiallybetweenU.S.andChina.
• InharmonywiththeLimitedTestBanTreatyofthe1960s,SALT[StrategicArmsLimitationTreaty]andSTART[StrategicArmsReductionTreaty],theINFhashadacodifyingeffectonthetwosuperpowers’strategicrelations.
• Washington’sleavingtheABM[Anti-BallisticMissile]andINFTreatycreatesaformalagreementtoverticalproliferationofWMDandgiveshigherstatustotheconceptofpowerininternationalpolitics.
Impact of U.S. withdrawal from the INF Treaty on China
• Intermediate-rangemissilesystemsandcruisemissileswouldconsiderablyenrichU.S.capabilitiesinapotentialclashoverTaiwanorothercontentiousstrategicissue.
• AnyadditionalU.S.conventionalmilitarysuperioritygivesChinaconsiderableincentivetoincreaserelianceonanescalatoryandpossiblydeterrencestrategy
• FollowingWashington’sdecisionontheINF,wemayexpectanevenmoremuscularstandfromChinaconcerningarticulationandprotectionofthevitalinterestsofBeijing.
www.amritaias.com | [email protected] | +91 85890 60000
89
• Vectoralenhancementofpoliticalrelationswithstatesallovertheworld,particularlythosethatareeconomicallyandpoliticallyaffiliatedtoChina,withpossibleshowsofeconomicmightanddeeperengagementonthefieldofsecurity.
• JoiningthearmsraceinAsiamayleadChinaintoatrapof“competitivestrategy.
Conclusion
• Intoday’sreturnofmajorpowerrivalry,itisnolongerabi-polarworld,andnucleararmscontrolisnolongergovernedbyasinglebinaryequation.
• Therearemultiplenuclearequations—U.S.-Russia,U.S.-China,U.S.-NorthKorea,India-Pakistan,India-China,butnoneisstandalone.
• Therefore,neithernuclearstabilitynorstrategicstabilityintoday’sworldcanbeensuredbytheU.S.andRussiaaloneandthisrequiresustothinkafresh.
• Themostimportantachievementofnucleararmscontrolisthatthetabooagainstuseofnuclearweaponshasheldsince1945.
• Preservingthetabooiscriticalbutthisneedsrealisationthatexistingnucleararmscontrolhastobebroughtintolinewithtoday’spoliticalrealities
Practice Question
1. WhatyoumeanbyIntermediate-RangeNuclearForces(INF)Treaty?DoyouthinkthatthepresentunilateralcancellationofitbyUScouldhaveapossibleimplicationonthepeacefulenvironmentinAsia?(200words)
www.amritaias.com | [email protected] | +91 85890 60000
90
COOPERATIVE FEDERALISM
Context
• Indianmodeloffederalismiscalledquasi-federalsystemasitcontainsmajorfeaturesofbothafederationandunion.
• Federalismisasystemofgovernmentinwhichpowerisdividedbetweenacentralauthorityandconstituentpoliticalunits.
• TheConstitutionofIndiaestablishesafederalstructuretotheIndiangovernment,declaringittobea“UnionofStates”.
16
Evolution of cooperative federal structure in India from a centralised administration
• In1974,whentheSupremeCourtcommentedontheConstitutionenvisagingacooperativefederalstructure,federalismhascomealongwayinIndia.
• InrelationtotheimpositionofPresident’sruleunderArticle356oftheConstitution,federalismisfarmoremature.
• Between1947and1977,therewere44instanceswhenthepowertoimposePresident’srulewasexercised.
• Between1977and1996,thepowerwasexercisedalmost59times.PrimeMinisterIndiraGandhi’scabinetresortedtothepoweranestimated50timesinher14years.
• From1991till2016,therehavebeen32instancesoftheexerciseofthispowercomparedto92instancesintheprecedingperiod.
• InS.R.Bommaiv.UnionofIndia(1994),thelimitationlaiddownbytheSupremeCourtmighthaveplacedgentlebreaksonexerciseofthispower(President’sRule),buttheCentre
www.amritaias.com | [email protected] | +91 85890 60000
91
continuestowieldsuperiorlegislativepowers,includingresiduarypowersandlegislativeprecedence.
Although cooperative federalism has been Improved, Instances of contentious terrain
• TaxationpowersarecontentiousissueandtheCentralgovernmenthaswonmostofthedisputespurelyduetoexpressprovisionsintheConstitution.
• IntheGoodsandServicesTax(GST)scenario,Stateshaveforegonesometaxationpowers(octroi,entrytax,luxuryandentertainmenttaxes,etc.)buthavepowerstolevytaxesthroughpanchayatsandmunicipalities.
• SuchpowerscanresultinananomaloussituationofatransactionbeingtaxedunderGSTlawsandalocallaw,andthisisyettobetestedincourt.
• AftertheGSTamendmentstotheConstitution,Stateshavepowertolevytaxonsaleofpetrol,diesel,etc.andthesewouldberevenuesoftherespectiveStates.However,theGSTCouncilisyettorecommendinclusionoftheseitemsunderGST.
• ThesouthernStateshavebeenvocalaboutthefalsepositivesandnegativesfromtaxsharingandthismechanismislargelysubjecttotherecommendationsoftheFinanceCommission(FC)andactionbyParliament.
• StateleviesandStateGSTformpartofaState’srevenue.UnderArticle269A(1)theGSTCouncilandnottheFChasthepowerstomakerecommendationsinrelationtosharingoftaxesfrominter-Statetrade.
Anomalies in the interpretation of the constitution with respect to the taxation laws
• ARTICLE269A(1):UnderArticle269A(1),theGSTCouncilandnottheFinanceCommission,hasthepowerstomakerecommendationsinrelationtosharingoftaxesfrominter-Statetrade.Thisisimportant,sinceStateshaveavoteintheGSTCouncil.
www.amritaias.com | [email protected] | +91 85890 60000
92
• ARTICLE270(1)(A)&270(2):TheyprovidethattaxesleviedundertheGSTlawswillbesharedinthemannerprescribedinArticle270(2),whichtakesustotheFinanceCommissionandnottheGSTCouncil.
• ThepossibleanomalybetweenrolesandpowersoftheFinanceCommissionandtheGSTCouncilhasnotbeentested,butitmaymakesharingoftheserevenuessubjectmatteroftheFinanceCommissionandParliamentratherthantheGSTCouncil,whereStateshavemorepowers.
• RecommendationsoftheFinanceCommissionareplacedbeforeParliamentandStateshavenoroleinthedebate.
• ThereisalsonoprovisionforanaggrievedStatetochallengethereportofFinanceCommissiononcertaingroundsorseekmandatoryenforcementofitsrecommendations.
• IfaStateisaggrievedbytherecommendationsitself,anaggrievedStatewouldhavetolitigateintheSupremeCourtasitappearsthattheGSTCouncilisyettoestablishamechanismforresolvingdifferencesintermsofArticle279A(11).
Conclusion
• Tobringcompetition,thecentreshouldcooperatewiththestatesbyprovidingnecessaryautonomyintheirpolicymakingandallocatingthemtherequiredfundstospendbasedontheirownpriorities.
• Cooperativefederalismandcompetitivefederalismarenotmutuallyexclusiveinsteadtheybotharetwosidesofthesamecoin.Bothshouldbeequallypresentforthedevelopmentofanationasawhole.
• Thecooperationformsthegroundbaseonwhichcompetitioncanbegin.Therehastobeabalancebetweencooperativeandcompetitivefederalism.
• Statesdon’tmerelyseekparitywitheachother,historicallyStateshavealsosoughtparitywiththeCentreassuggestedandrecommendedinSarkariaandPunchhiCommissions.
www.amritaias.com | [email protected] | +91 85890 60000
93
• Inaneraofcoalitionpolitics,GSTcouncilanditsmechanismtosolvethedisputestoarisewillbeatruetestofcooperativefederalism.
Practice Question
1. Whatyoumeanbyco-operativefederalisminIndiancontext?HowfardoyouthinktheIndianconstitutionsupportsco-operativegovernanceamongstates?(250words)
www.amritaias.com | [email protected] | +91 85890 60000
94
JUDICIAL ACTIVISM: JUDGES LEGISLATE
Context
• Throughfreeelections,citizensofademocracyconferpowersupontheirleadersthataredefinedbylaw.
• Inaconstitutionaldemocracy,powerisdividedsothatthelegislaturemakesthelaws,theexecutiveauthorityenforcesandcarriesthemout,andthejudiciaryoperatesindependently.
• Noonebranchcancontrolallpowerinademocraticsystem.ThisisreferredtoastheSeparationofPowers.
• Inmanyrecentjudgments,theSupremeCourthasbecomehyper-activistinmakinglaws.
17
Supreme Court duty is not to Legislate Laws
• Makinglawsisthefunctionofthelegislature.
• AsobservedinUnionofIndiav.DeokiNandanAggarwal(1991),“Thepowertolegislatehasnotbeenconferredonthecourts.”
• InSureshSethv.Commissioner,IndoreMunicipalCorporation(2005),thecourtobserved:“UnderourConstitutionalscheme,ParliamentandLegislativeAssembliesexercisesovereignpowertoenactlaws.”
• InRamJawayav.TheStateofPunjab(1955),thecourtobserved:“OurConstitutiondoesnotcontemplateassumption,byoneorganorpartofthestate,offunctionsthatessentiallybelongtoanother.”
• ThisimpliesthatthereshouldbeabroadseparationofpowersintheConstitutionamongthethreeorgansofthe
www.amritaias.com | [email protected] | +91 85890 60000
95
state,andthatoneorganshouldnotencroachintothedomainofanother.Ifthishappens,thedelicatebalanceintheConstitutionwillbeupsetandtherewillbechaos.
Importance of Judicial Branch
• Independentandprofessionaljudgesarethefoundationofafair,impartial,andconstitutionallyguaranteedsystemofcourtsoflawknownasthejudiciary.
• Thisindependencedoesnotimplyjudgescanmakedecisionsbasedonpersonalpreferencesbutratherthattheyarefreetomakelawfuldecisionsevenifthosedecisionscontradictthegovernmentorpowerfulpartiesinvolvedinacase.
• Article50oftheIndianConstitution:Separationofjudiciaryfromtheexecutive.ThestateshalltakestepstoseparatethejudiciaryfromtheexecutiveinthepublicservicesoftheState.
There are three roles for the judicial arm of Government
• Reviewtheconstitutionalityofgovernmentactionandlegislation.
• Interpretlegislationandresultingaction.
• AdjudicateotherdisputesnotnecessarilyinvolvingGovernmentactionorlegislation.
• Indemocracies,independencefrompoliticalpressuresofelectedofficialsandlegislaturesguaranteestheimpartialityofjudges.
• Judicialrulingsshouldbeimpartial,basedonthefactsofacase,individualmeritsandlegalarguments,andrelevantlaws,withoutanyrestrictionsorimproperinfluencebyinterestedparties.Theseprinciplesensureequallegalprotectionforall.
Is judicial discipline being observed?
• First,inArunGopalv.UnionofIndia(2017),theSupremeCourtfixedtimingsforburstingDiwalifireworksandprohibitedtheuseofnon-greenfireworks,althoughtherearenolawstothateffect.
www.amritaias.com | [email protected] | +91 85890 60000
96
• Second,inM.C.Mehtav.UnionofIndia(2018),thecourtannulledthestatutoryRule115(21)oftheCentralMotorVehicleRules,1989,whenitdirectedthatnoBS-4vehicleshouldbesoldafterMarch30,2020,andthatonlyBS-6vehiclescanbesoldafterthatdate.
• Third,inSubhashKashinathMahajanv.StateofMaharashtra(2018),thecourtamendedtheScheduledCastesandtheScheduledTribes(PreventionofAtrocities)Act,1989,byannullingSection18whichsaidthatnoanticipatorybailwillbegrantedtopersonsaccusedundertheAct;byrequiringapreliminaryenquiry;andbyprohibitingarrestundertheActexceptwithpermissioninwritingbytheappropriateauthority.
• Fourth,inRajeshSharmav.TheStateofUttarPradesh(2017),thecourtfeltthatSection498AoftheIndianPenalCodewasbeingmisused.
• SoitamendedthatSectionbyrequiringcomplaintsunderthatprovisiontobesenttoaFamilyWelfareCommitteeconstitutedbytheDistrictLegalServicesAuthority,althoughthereisnosuchrequirementinSection498A.
• Finally,theNationalGreenTribunal(NGT)orderedthatno15-year-oldpetrol-drivenor10-year-olddiesel-drivenvehiclewillplyinDelhi,andtheSupremeCourthasdirectedimpoundingsuchvehicles,thoughneithertheNGTnortheSupremeCourtarelegislativebodies.
Role of Judiciary in Legislative matters
• Judicialreview:Powerofjudiciarytoexaminetheconstitutionalvalidityoflegislativeenactmentsandexecutiveordersofthegovernment.
• Judicialactivism:Proactiveroleplayedbythejudiciaryinprotectionofrightsofcitizenandpromotionofjusticeinsociety.Itamountstotheassertiverolebyjudiciarywhereitforcestheothertwoorganstodischargetheirconstitutionalduties.
• Judicialrestraint:Roleofjudgesshouldbelimitedtoonlyinterpretationoflawandshouldleavethelaw-makingbusiness
www.amritaias.com | [email protected] | +91 85890 60000
97
tothelegislatureandtheexecutive.
• Asitisagainsttheconstitutionalprincipleofseparationofpowersandsincejudiciaryisanon-electivebody,itdoesnotenjoypopularwilltomakelaws.
Conclusion
• Ifjudgesarefreetomakelawsoftheirchoices,notonlywouldthatgoagainsttheprincipleofseparationofpowers,itcouldalsoleadtouncertaintyinthelawandchaosaseveryjudgewillstartdraftinghisownlawsaccordingtohiswhimsandfancies.
• OurConstitutionisouractofrevolutionandtheJudiciaryitsprotector.TodaywhenthesameJudiciaryoverstepsitslimits,itisindispensablethatthedecisioniscorrected,reviewedandreversedbyalargerBench.
• InacountrygovernedbyawrittenConstitution,thedemocraticrightflowsfromtheattributeofconstitutionalsovereignty.Wecannotclaimourfundamentalrightoranyotherlegalrights,unlessweretainthestructureofoursovereignty.
Practice question
1. DoyouthinkthattheexecutivecourtsareaboontoIndiandemocracy.Analyse(200words)
www.amritaias.com | [email protected] | +91 85890 60000
98
STATE-SPONSORED INSURANCE AND AYUSHMAN BHARAT
Context
• AreportbytheWorldHealthOrganisationhasshownthataround3.2%ofIndianswouldfallbelowthepovertylinebecauseofhighOut-of-pocket(OoP)healthexpenditure.
• WorldBankdata,in2015,showedthatnearly65%ofhealth-careexpenditureinIndiais“OutofPocket”(OoP).
• Thus,anationalhealthinsuranceschemeliketheAyushmanBharatiswelcome.
18
Ayushman Bharat: Government funded healthcare program
• IndiatakesagiantleaptowardsprovidingaccessibleandaffordablehealthcaretothecommonmanwiththelaunchofAyushmanBharat-PradhanMantriJanAarogyaYojana(AB-PMJAY)
• AyushmanBharat–PradhanMantriJanAarogyaYojana(AB-PMJAY)isaparadigmshiftfromsectorial,segmentedandfragmentedapproachofservicedeliverythroughvariousnationalandStateschemestoabigger,morecomprehensiveandbetterconvergedandneedbasedservicedeliveryofsecondaryandtertiarycare.
• AyushmanBharat,forinstance,hasenhancedtheRashtriyaSwasthyaBimaYojana(RSBY),tocoveraround11crorefamilieswithayearlycoverageofRs.5lakh.
• ExpertsestimatethiswillrequireRs.25,000croreperyear,whenfullyimplemented.
www.amritaias.com | [email protected] | +91 85890 60000
99
Flows of present insurance model
• Insuranceworksontheprincipleofpoolingtheriskofpolicyholders.Ifanindividual,corporationoraGovernmentcanbearacertainquantumofriskbythemselves,itisnotfinanciallysensibletoinsurewithaninsurancecompany.
• Thisisbecauseadministrativeoverheadsandprofitmarginsofinsurancecompaniesareincludedininsurancepremiumcosts.
• Forinstance,Lastyear,insurancecompaniesmadeabumperprofitof85%tothetuneofRs.15,029CroncropinsurancepremiumunderthePradhanMantriFasalBimaYojana.
Costs baring by the insurance companies
• Typicalinsurancecompanycostsinclude;
» designinginsuranceproductstosuitcustomerneeds
» actuarialinputtoassessandmanagerisk
» advertisingandmarketing
» empanelment(ofapprovedserviceproviderssuchashospitals)
» administrativeexpensestoprovidepriorapprovalofclaimsand
» processing,whichincludesfunctionssuchasfrauddetection.
• However,ofthese,thefirstthreearenotapplicabletoprogrammessuchasAyushmanBharatwhichwillbefullyfundedbythegovernmentasablanketscheme.
• Thegovernmentisalsofundingmorethan80%ofcropinsurance.Thelastthreefunctions,i.e.empanelingserviceproviders,pre-approvinghospitalisationofpatientsandsubsequentlysettlingtheclaim,arecommonlyoutsourcedtothird-partyadministrators(TPAs)evenbyinsurancecompanies.
www.amritaias.com | [email protected] | +91 85890 60000
100
Therefore, best insurance model can be trust model and cost cutting
• NoinsurancecompanyhasthekindoffinancialresourcestheCentreandtheStateshave.
• However,inIndia,governmentscontinuetopayheftysumsinpremiumtoinsurancecompanies.
• Hence,governmentsmustconsiderbearingtheriskbythemselvesknownasthe“trustmode”insteadofusinginsurancecompaniesasrisk-bearersandintermediaries.
• CasestudyforTrustModel:StudyingtheAarogyasrischemeintroducedinundividedAndhraPradeshbythelateCongressChiefMinister,Y.S.RajasekharReddy(theforerunneroftheRSBY).
• Theyshowedthatthebidbyinsurancecompaniesonsuchhealthschemesincludeda20%marginforadministrativeexpenseandprofit.ByavoidinginsurancecompaniesandusingTPAsinstead,governmentscansaveabout15%,oruptoRs.6,000croreperyear.
• Thesesavingswillcontinuetoriseduetorisingpremiums.Thestudyalsofoundtheclaim-to-premiumratioandcustomersatisfactiontobebetterinthetrustmodethantheinsurancemode.Itwouldalsopreventexorbitantprofitsaccruingtoinsurancecompaniesingoodcroppingseasonsasin2017-18.
Conclusion
• WithAyushmanBharat–PradhanMantriJanAarogyaYojana,thegovernmentistakinghealthcareprotectiontoanewaspirationallevel.
• Thisisthe“world’slargestgovernmentfundedhealthcareprogram”targetingmorethan50crorebeneficiaries.
• ThegovernmenthasalreadyproclaimedthatitwishestocuttheintermediarythroughtheJAMtrinity(JanDhan-Aadhaar-Mobile)anddirectbenefittransfers.
• Ithasalsoindicatedthatitwantstooptimisefundutilisation
www.amritaias.com | [email protected] | +91 85890 60000
101
throughtherecentlyintroducedPublicFinanceManagementSystem.
• Shiftingtothetrustmodewillbethenextnaturalstepinthispath,notonlysavingtaxpayermoneybutalsobenefitingfarmersandtheunderprivilegedinsteadofinsurancecompanies.
www.amritaias.com | [email protected] | +91 85890 60000
102
STRENGTHENING THE ELECTION COMMISSION
Context
• PILforcreatingIndependentMechanismtoappointCECandECs:
• TheConstitutionBenchoftheSupremeCourtisexaminingapublicinterestlitigation(PIL)thatcouldbecriticalforIndiandemocracy.
• ThePIL,whichseeksthestrengtheningoftheElectionCommissionofIndia(ECI),includesaproposaltocreateanindependentmechanismtoappointtheChiefElectionCommissioner(CEC)andElectionCommissioners(ECs).
• Atpresent,CECandECsaresimplyappointedbythegovernmentoftheday,withoutanydefinedcriteriaorprocesses
19
Election Commission of India
• ElectionCommissionofIndia(ECI)isaconstitutionalbodyunderArticle-324vestedwiththeresponsibilitiesofsuperintendence,directionandcontrolofconductofelections.ItconsistsofaChiefElectionCommissionerandtwoElectionCommissioners.
• Article324statesthattheElectionCommissionshallconsistofChiefElectionCommissionerandsuchnumbersofotherElectionCommissioners,ifany,asthePresidentmayfromtimetotimefixandappointmentofCECandotherECsshall,subjecttoprovisionsofanylawmadeinthatbehalfbytheParliament,bemadebythePresident.
• ThoughtheECIhassincebecomeaninstitutionofsomeauthority,therehavebeencontroversiesoverappointmentsofECs,allegationsofpartisanship,andnewproblemssuchasof
www.amritaias.com | [email protected] | +91 85890 60000
103
20voterbriberyandpaidnews,whichtheECIhasnotbeenabletoaddresssofar.
Three critical decisions taken by Constituent Assembly
• WhentheConstituentAssemblydebatedhowfreeandfairelectionsshouldbeensured,threeimportantquestionsarose.
• Thefirstwaswhetherfreeandfairelectionsshouldbemadeapartoffundamentalrightsoranindependentinstitution,outsidetheexecutive,shouldbeestablishedtoconducttheelections.
• TheAssemblyoptedforthelatterandcreatedtheECI.
• Withlegalbackupandtheresourcestodevelopandenforceatransparentelectoralsystem,theECImadefreeandfairelectionsareality.
• Thesecondcriticaldecisionwastohaveasingle,centralisedbodyforelectionstotheLokSabhaandStatelegislatures.
• OneproposalwasthattheECIbeconfinedtofederalelections,andseparateinstitutionsbesetuptoconductelectionstoStatelegislatures.
• However,withincreasingtensionamongcommunities,theAssemblyfearedpartisanactionintheStatesandoptedforasinglenationalinstitution,theECI.Theimplicationsofthisdecisionwerecomplex.
• Itwasdebatedwhethertohaveasingle,centralisedbodyforelectionstotheLokSabhaandStateLegislatures.OneproposalwasthatECIbeconfinedtofederalelectionsandseparateinstitutionstobesetuptoconductelectionstoStateLegislatures.
• Atthattime,theAssemblyfearedpartisanactionintheStatesandoptedforasinglenationalinstitution.
• ThethirdquestionconcernedensuringtheindependenceoftheECI.
• IndependenceoftheECI,themannerofappointmentoftheCECandECswasdebated.
www.amritaias.com | [email protected] | +91 85890 60000
104
• OnememberproposedratificationofCEC’sappointmentbytheLegislature,buttheConstituentAssemblydisagreedanditsimplyprovidedfortheCECtobeappointedbythePresident,leavingittotheLegislaturetoenactasuitablelaw.
• TheConstituentAssemblydidprovidethattheCECcouldonlyberemovedthroughtheprocessthatofSupremeCourtJudge.FortheElectionCommissioners,eventhissafeguardwasnotprovided.
Present issues that are in concern with ECI
• TheElectionCommissionofIndia(ECI)hassoughtcompleteindependencefromgovernmentcontrol.
• Atpresentonly,ChiefElectionCommissionerhassecurityoftenure.Also,itsbudgetisnotachargedexpenditure,butisvotedbytheParliament.
• ThereshouldbeaprovisioneitherinlaworbysomegovernmentresolutionthattheseniormostECshouldbeautomaticallyelevatedasCECinordertoinstilafeelingofsecurityinthemindsoftheECsandthattheyareinsulatedfromexecutiveinterferenceinthesamemannerasCEC.
• Atpresent,thereisnospecificprovisioninthelawtothiseffectandcommissionhastoresorttoextraordinarypowersunderArticle324ofconstitutionwhich,itfeelsshouldbeusedsparingly.
• IfitisapprovedbytheLawMinistry,thepollpanelwillbefreetoframeitsownrecruitmentrulesandshortlistandappointofficersonitsown.Itcanthenalsodrawcompetentprofessionalsandexpertsfromthejobmarket.
Way forward
• ThereshouldbepubliclyreprimandedforpoliticiansforviolatingtheModelCodeofConduct,postponed/canceledelectionsiftheircredibilitywascompromised,intensifiedsupervisionofelections,andinsistedonactionagainsterrantofficials.
www.amritaias.com | [email protected] | +91 85890 60000
105
• IthasalsosoughtabsolutefinancialfreedomfromtheLawMinistry.LiketheCAGandUPSC,theECIwantsitsbudgettobe‘charged’totheConsolidatedFundasopposedtothecurrentpracticeofbeingvotedandapprovedbyParliament.
• ECIhasalsoproposedanindependentsecretariatforitselfwithwhichitwillnothavetodependonDoPTtoappointitsofficers.
• Thereisaneedforconstitutionalprotectionforallthreeofitsmembersasopposedtojustoneatpresent.ItstwoElectionCommissionerscanberemovedbythegovernmentontherecommendationoftheChiefElectionCommissioner.
• TheECIwantsprintmediatobeincludedinSection126oftheRPAct.Thissectioncurrentlyprohibitspublicationofadsbypoliticalpartiesinelectronicmedia(TV,radio)andrecentlyaddedsocialmedia,48hoursbeforevotingends.
• TheECIsoughtamendmenttoRPAtoincludespecificpowerstopostponeorcountermandpollsonthegroundsofuseofmoneypower.
Conclusion
• ECIhasbeenensuringdemocratictransferofpoliticalpowerfromonesetofrepresentativestoothersinceindependence.
• However,inrecenttimes,itisembroiledinvariousissues&controversiessuchasEVMmalfunctioning,announcementofelectiondatestobenefitrulinggovernment,moneyandmuscleroleinelectionsetc.
• Duringthe1996generalelection,theECIrestoredthecredibilityoftheelectionprocess.TheCEC,T.N.Seshan,reinterpretedtheECI’sroleandpowers,andprovidedcombative,forcefulleadership.
• Ashistoryshows,inadequateleadershipisthebaneofourpublicinstitutions.Safeguardstoensurethatethicalandcapablepeopleheadthemarecrucial
www.amritaias.com | [email protected] | +91 85890 60000
106
INTERNATIONAL TOURISM MART: TOURISM INDUSTRY IN INDIA
Context
• Itisannualeventorganizedinnorth-easternregionwiththeobjectiveofhighlightingtourismpotentialofregionindomesticandinternationalmarkets.
• ItprovidesplatformtotourismbusinessfraternityandentrepreneursfromeightNorthEasternStates.
• The7theditionofthe‘InternationalTourismMart’washeldinAgartala,thecapitalcityofTripura.Thethemeforthisyearis“AdventureTourism”.
20
Tourism industry
• TourisminIndiaisimportantforthecountry’seconomyandisgrowingrapidly.TheWorldTravelandTourismCouncilcalculatedthattourism9.4%ofIndia’sGDPin2017andsupported8%ofitstotalemployment.
• Accordingto“Travel&TourismEconomicImpact2018India”reportbyWorldTravelandTourismCouncilthesectorisexpectedtogrowatanannualrateof6.9%to9.9%ofGDPby2028.
• SudipBandyopadhyaycommitteeobservedthattheforeignexchangeearningsfromtourismwerearoundUSD21.07billionduring2015
• TheTravelandTourismCompetitivenessReportfortheyear2017,rankedIndia40thoutof136countries.
• ItmentionsthatIndiahasgoodpricecompetitiveness,airtransport,groundtransportinfrastructure.
• However,someotheraspectsofitstourisminfrastructureremainsomewhatunderdeveloped.Thenationhasveryfewhotelroomspercapitabyinternationalcomparisonandlow
www.amritaias.com | [email protected] | +91 85890 60000
107
21ATMpenetration.
Issues related the industry
• Lackofinfrastructure:Tourism-associatedeconomicandsocialinfrastructure–hotels,connectivity,humanresources,hygiene,healthfacilities,etcarelargelyunderdevelopedinIndia.
• SafetyandSecurityissues:itisamajorroadblocktothetourismdevelopment.Attacksonforeignnationals,especiallyonwomen,raisequestionsaboutIndia’sabilitytowelcometouristsfromfarawaycountries.
• Connectivityissues:Majorityofthetouristspotsinthecountryarenoteasilyaccessible.Thisisbecauseofhighcostsoftravelling,poorconnectivityandaseriesofpermissionsrequiredforvariousreasons.
• Fluctuationsincurrencyexchangerates:thisiscreatingfluctuationsinthenumberofforeigntouristsvisitingthecountry.
• Seasonaldependenceofthemarketisreducingtheemployabilityofthesector.
• Complextaxationsysteminthecountryishavingadetrimentaleffectonthesector.
www.amritaias.com | [email protected] | +91 85890 60000
108
Related schemes
• InfrastructureReformsandTourism
» A.SagarmalaprojectbeginningwithCharDhamYatralinkingPuriJagannathaTempletoDwarakabyseaviavariousplacesofreligiousinterestenroute.
» B.SwadeshDarshanschemeisoneamongtheflagshipschemesoftheMinistryofTourismfordevelopmentofthematiccircuitsinthecountryinaplannedandprioritisedmanner.UnderthisschemetheGovernmentisfocusingondevelopmentofqualityinfrastructureinthecountrywithobjectiveofprovidingbetterexperienceandfacilitiestothevisitorsononehandandonotherhandfosteringtheeconomicgrowth.
» C.HRIDAYandPRASADschemescreatingagroupofculturallyimportantcitiesandtheirnetwork.
• TouristTrainingSchools,SkillIndiaandTourism
» A.MinistryofTourismrollsoutIncredibleIndiaTouristFacilitatorCertification(IITFC)Programme.ItwillenableIndiancitizenstodevelopandenhancetheskillsassociatedwithtourism,andwhereonecanincorporateknowledgeaboutfacilitatingtouristsacrossthecountry.
• SwachhBharat:
» A.MinistryofTourismisorganizingthe‘SwachhtaHiSeva’campaignatvariousimportanttouristsitesacrossthecountry.
» B.PartneringwithShulabhInternational(NGO)forscalinguppay-and-usetoiletsratherthandependingonfreepublicutilities(asithasbeenobservedthatformertyperemainmoreuserfriendlyduetoregularmaintenancethangovernmentones)
» C.Specialfocusoncleanlinessandwomensafetyoftouristsites
www.amritaias.com | [email protected] | +91 85890 60000
109
• e-technology
» A.TourismMinisterlaunchesIncredibleIndiamobileApp.ItshowcasesIndiaasaholisticdestination,revolvingaroundmajorexperiences,suchasspirituality,heritage,adventure,culture,yoga,wellnessandmore.Themobileapphasbeendesignedkeepinginmindthepreferencesofthemoderntravelerandfollowsthetrendsandtechnologiesofinternationalstandards.
• AccessibleIndia
» A.IndiaandtheRepublicofKoreasignMoUforstrengtheningcooperationinthefieldofTourism.TheRepublicofKoreaisoneoftheleadingtouristsgeneratingmarketforIndiafromEastAsia.ForeignTouristArrivals(FTAs)fromtheRepublicofKoreain2017were1,50,000.
Probable way out
1. Islandtourism:NITIAayogthroughitsplanfor“holisticdevelopmentoftheislands”issettoboosteco-tourisminLakshadweeplagoons.ItisplanningtosetupislandwatervillaswhichinturnwillbeapopularalternativetoleadingdestinationssuchasMauritiusandMaldives.
2.Statemodels:KeralaTourism’s‘YallaKerala’printmediacampaignintheGulfcountries,showcasedtheState’sgreeneryandbackwaters.
3.StandingCommitteeonRailways(Chair:Mr.SudipBandyopadhyay)submittedareporton‘TourismPromotionandPilgrimageCircuit’.TherecommendationsoftheCommitteeare:
» A.Railways’roleintourism:TheCommitteenotedthatRailwayscanplayacrucialroleinpromotingtourisminthecountrybecauseofitswidereach.Italsoprovidesaneconomicandeco-friendlymeansoftransportacrossthecountry.Itcantapintothenumerouspilgrimagecentersacrossthecountry.ItrecommendedthatthereshouldberepresentationfortourismintheRailwayBoardwhichwouldhelpthemframetourismrelatedpolicies.
www.amritaias.com | [email protected] | +91 85890 60000
110
» B.Financialoverview:Thecommitteenotedthatnofundsforpromotionofpilgrimplacesareprovidedseparately.Itrecommendedthatthebudgetallocationfortourismshouldbeincreasedimmediately,andaseparatefundbecreatedforthepromotionoftourismandpilgrimageinIndia.
» C.Tourismpromotion:ithastodonebyconnectinglocationsofhistoricandculturalimportance.
» D.Proactiveadvertisementandpublicity
International institutions working on it
• UnitedNationsWorldTourismOrganization(UNWTO):IndiatochairtheProgrammeandBudgetCommitteeofUNWTOExecutiveCounciltill2021.
» ItistheUNagencyresponsibleforthepromotionofresponsible,sustainableanduniversallyaccessibletourism.
» TheUNWTOExecutiveCouncilrepresentstheOrganization’sgoverningbodywhosetaskistotakeallnecessarymeasuresinconsultationwiththeSecretary-General,forimplementationofitsowndecisionsandrecommendationsoftheAssemblyandreportthereupontotheAssembly.
» TheCouncilmeetsatleasttwiceayear,thenexttobeheldinBahrain.
» Thecouncilconsistsof35FullMemberselectedbytheassemblyinproportionofonememberforeveryFiveFullMembers,inaccordancewiththeRulesofProcedurelaiddownbytheAssemblywithaviewtoachievingfairandequitablegeographicaldistribution.
• PacificAsiaTravelAssociation
» ThePacificAsiaTravelAssociation(PATA)isamembershipassociationworkingtopromotetheresponsibledevelopmentoftravelandtourismintheAsiaPacificregion.
www.amritaias.com | [email protected] | +91 85890 60000
111
» Itwasfoundedin1951.
» PATAisanot-forprofitassociationthatisinternationallyacclaimedforactingasacatalystfortheresponsibledevelopmentoftravelandtourisminAsiaPacificregion.
» ThePATAAwardsarepresentedtooutstandingentriesintheprincipalcategoriesofMarketing;EducationandTraining;Environment,andHeritageandCulture.
• InternationalBuddhistConclave:MinistryofTourism,GovernmentofIndia,hasbeenorganizingtheInternationalBuddhistConclavebiennially.
» IBC2018willhaveareligious/spiritualdimension,anacademicthemeandadiplomaticandbusinesscomponent.
TheMinistryhasplannedtoorganizean‘Investors’Summit’duringtheConclavetoattractinvestmentsindevelopingworldclassinfrastructure
www.amritaias.com | [email protected] | +91 85890 60000
112
SENTINELESE ISSUE AND OTHER PVTG RELATED ISSUES.
Context
• ThedeathofanAmericantouristwhoillegallyvisitedtheisolatedNorthSentinelIslandhaddrawntheworld’sattentiontothesmallisland’sreclusiveinhabitants.
• They’reoneofthefewmostly“uncontacted”groupsleftintheworld,andtheyowethatisolationpartlytogeography--NorthSentinelisasmallisland,offthemainshippingroutes,surroundedbyashallowreefwithnonaturalharbors--partlytoprotectivelawsenforcedbytheIndiangovernment,andpartlytotheirownfiercedefenseoftheirhomeandtheirprivacy.
21
Sentinelese
• TheSentinelese,anegritotribewholiveontheNorthSentinelIslandoftheAndamans,havenotfacedincursionsandremainhostiletooutsiders.
• TheinhabitantsareconnectedtotheJarawaonthebasisofphysical,aswellaslinguisticsimilarities.
• SomeresearchersarguethattheSentinelesehavebeenmostlyleftaloneevenfromcolonialtimes,unlikeothertribessuchastheOnges,JarawasandGreatAndamanese,becausethelandtheyoccupyhaslittlecommercialattraction.
• In1991theirheadcountwasputat23.Census2001counted39inhabitants.
• TheGovt.ofIndiaissuedtheAndamanandNicobarIslands(ProtectionofAboriginalTribes)Regulation,1956todeclarethetraditionalareasoccupiedbythetribesasreserves,andprohibitedentryofallpersonsexceptthosewithauthorization.
www.amritaias.com | [email protected] | +91 85890 60000
113
• Photographingorfilmingthetribemembersisalsoanoffence.
• Theruleswereamendedlatertoenhancepenalties.Butrestrictedareapermitswererelaxedforsomeislandsrecently.
Constitutional provisions for tribes
• ReservationineducationalinstitutionhasbeenprovidedinArticle15(4)whilereservationinpostsandserviceshasbeenprovidedinArticle16(4),16(4A)and16(4B)oftheConstitution.
• Article23whichprohibitstrafficinhumanbeingsandbeggarandothersimilarformsofforcedlabourhasaspecialsignificanceforScheduledTribes.InpursuanceofthisArticle,ParliamenthasenactedtheBondedLabourSystem(Abolition)Act,1976.
• Article24prohibitsemploymentofChildrenbelowtheageof14yearsinanyfactoryormineorinanyotherhazardsactivityisalsosignificantforScheduledTribesasasubstantialportionofchildlabourengagedinthesejobsbelongtoScheduledTribes.
• Article46oftheConstitutionprovidesthattheStateshallpromotewithspecialcaretheeducationalandeconomicinterestsoftheweakersectionsofthesocietyandinparticular,oftheScheduledCastesandScheduledTribesandshallprotectthemfromsocialinjusticeandallformsofexploitation.
• Article243DprovidesreservationofSeatsforScheduledTribesinPanchayats.
• Article330providesreservationofseatsforScheduledTribesintheHouseofthePeople.
Related acts and policies
• ForestRightsAct–2006:TheActgrantslegalrecognitiontotherightsoftraditionalforestdwellingcommunities,partiallycorrectingtheinjusticecausedbytheforestlaws.RightsundertheActare:
www.amritaias.com | [email protected] | +91 85890 60000
114
» Titlerights–i.e.ownershiptolandthatisbeingfarmedbytribalsorforestdwellerssubjecttoamaximumof4hectares;ownershipisonlyforlandthatisactuallybeingcultivatedbytheconcernedfamily
» Userights–tominorforestproduce(alsoincludingownership),tograzingareas,topastoralistroutes,etc.
» Reliefanddevelopmentrights–torehabilitationincaseofillegalevictionorforceddisplacement;andtobasicamenities,subjecttorestrictionsforforestprotection.
» Forestmanagementrights–toprotectforestsandwildlife.
• ProtectionofCivilRightsAct
» Acttoprescribepunishmentforthe[preachingandpracticeof-“Untouchability”]fortheenforcementofanydisabilityarisingtherefromformattersconnectedtherewith.
• SC/ST(PreventionofAtrocities)Act
» ActtopreventthecommissionofoffencesofatrocitiesagainstthemembersoftheScheduledCastesandtheScheduledTribes,toprovideforSpecialCourtsforthetrialofsuchoffencesandforthereliefandrehabilitationofthevictimsofsuchoffencesandformattersconnectedtherewithorincidentalthereto.
• TheProvisionsofthePanchayats(ExtensiontothescheduledAreas)Act,1996
» Panchayats(ExtensiontoScheduledAreas)Act,1996orPESAisalawenactedbytheGovernmentofIndiatocoverthe“Scheduledareas”,whicharenotcoveredinthe73rdamendmentorPanchayatiRajActoftheIndianConstitution.“ScheduledAreas”meanstheScheduledAreasasreferredtoinClause(1)ofArticle244oftheConstitution.Itprovidesthatastatelegislationonpanchayatsinthescheduledareashouldtakecareofthecustoms,religiouspracticesandtraditionalmanagement
www.amritaias.com | [email protected] | +91 85890 60000
115
practicesofcommunityresources
PVTG and related developments
• ParticularlyVulnerableTribalGroups(PVTGs)aremorevulnerableamongthetribalgroups.Duetothisfactor,moredevelopedandassertivetribalgroupstakeamajorchunkofthetribaldevelopmentfunds,becauseofwhichPVTGsneedmorefundsdirectedfortheirdevelopment.
• Inthiscontext,in1975,theGovernmentofIndiainitiatedtoidentifythemostvulnerabletribalgroupsasaseparatecategorycalledPVTGsanddeclared52suchgroups,whilein1993anadditional23groupswereaddedtothecategory,makingitatotalof75PVTGs.
• In1973,theDhebarCommissioncreatedPrimitiveTribalGroups(PTGs)asaseparatecategory,whoarelessdevelopedamongthetribalgroups.PVTGshavesomebasiccharacteristics:
» 1. mostlyhomogenous,
» 2. smallpopulation
» 3. relativelyphysicallyisolated
» 4. socialinstitutescastinasimplemould
» 5. absenceofwrittenlanguage
» 6. relativelysimpletechnology
» 7. slowerrateofchange
Issues of PVTG in Andaman and Nicobar
TherearefivePVTGsintheAndamanislandssuchas;
• GreatAndamanese
» decliningpopulation:ThegrowthofPVTGs’populationiseitherstagnatingordeclining,comparedtothegeneralpopulationgrowth,particularlyintheAndamanand
www.amritaias.com | [email protected] | +91 85890 60000
116
NicobarIslandswherethedecliningrateisveryhigh.Eg:-In1858,theGreatAndamanesewereestimatedatnearly3500,Buttoday,just53survive.
» Healthanddiseases:Theyarevulnerabletocommunicablediseasesbesidesunhealthydrinkinghabits,acquiredaftercontactwiththenon-tribal,urban,dominantandadvancedcommunities.
• Jarawas
» TheprincipalthreattotheJarawa’sexistencecomesfromencroachmentontotheirland,whichwassparkedbythebuildingofahighwaythroughtheirforestinthe1970s.
» AlthoughIndia’sSupremeCourtin2002orderedthatthehighwaythroughtheJarawa’sreserveshouldbeclosed,itremainsopen–andtouristsuseitfor‘humansafaris’totheJarawa.ThetouriststreattheJarawalikeanimalsinasafaripark.
» PoachersentertheJarawa’sforestandstealtheanimalsthetribereliesonfortheirsurvival.TheyhavealsointroducedalcoholandmarijuanaandareknowntosexuallyabuseJarawawomen.
» Theyremainvulnerabletooutsidediseasestowhichtheyhavelittleornoimmunity.
• Sentinelese
» Theirextremeisolationmakesthemveryvulnerabletodiseasestowhichtheyhavenoimmunity,meaningcontactwouldalmostcertainlyhavetragicconsequencesforthem.
» illegalpoachingintheirwaters
» Peoplearetryingtomakeacontactwiththem
• Onges
» Theyareasemi-nomadictribeandfullydependentonthefoodprovidedbynature.Theyhavenowexperiencedtheimpactofoutsiders,aseffortsatbefriendingthemhave
www.amritaias.com | [email protected] | +91 85890 60000
117
provedsuccessful.Theyhavebeenprovidedwithpuccahouses,food,clothes,medicineetc.bytheadministration.
• ShomPens.
» Landencroachment:Amajorinfluxofpopulationstartedin1969withthesettlementofseveralhundredex-servicemenfromthemainland.
Related schemes
• Schemeof“DevelopmentofParticularlyVulnerableTribalGroups(PVTGs)”
» Underthescheme,Conservation-cum-Development(CCD)/AnnualPlansaretobepreparedbyeachState/UTfortheirPVTGsbasedontheirneedassessment,whicharethenappraisedandapprovedbytheProjectAppraisalCommitteeoftheMinistry.ActivitiesfordevelopmentofPVTGsareundertakeninSectorsofEducation,Health,LivelihoodandSkillDevelopment,AgriculturalDevelopment,Housing&Habitat,ConservationofCultureetc.
• RestrictedAreaPermit(RAP)regime:RAPregimewasnotifiedundertheForeigners(RestrictedAreas)Order,1963.
» Underit,foreignnationalsarenotnormallyallowedtovisitprotectedorrestrictedareaunlessGovernmentissatisfiedthatthereareextra-ordinaryreasonstojustifytheirvisit.
Probable solutions
• AlongwiththeCensus,apropersurveyshouldbeconductedtocomprehensivelycapturethedataonPVTGspopulationenumeration,healthstatus,nutritionallevel,education,vulnerabilitiesetc.Thiswouldhelpimplementwelfaremeasuresbetter
• Ofthe75PVTGs,thosegroupswhosepopulationisdecliningshouldbeclearlyidentifiedandsurvivalstrategyshouldbedevised
www.amritaias.com | [email protected] | +91 85890 60000
118
• PVTGsthreatenedwithrelocationofwildlifeareasordevelopmentprojectsshouldbeidentifiedandactionablestrategiesshouldbedevisedtopreventthesame
• ItisimportanttorecognisetheinnateconnectionbetweenPVTGsandtheirlandsandhabitats.Therefore,arights-basedapproachfordevelopmentofPVTGsshouldbeadopted.
Practice question
1. InthelightofrecentdevelopmentswiththeSentinelese,doyouthinkthattheTribalPanchSheelisvalidtodate?(200words).
www.amritaias.com | [email protected] | +91 85890 60000
119
MINIMUM WAGES ACT FOR DOMESTIC WORKERS AND RELATED ISSUES OF UNORGANISED SECTOR EMPLOYEES.
Context
• ApetitionhasbeenfiledintheSupremeCourtseekingitsinterventiontobringdignitytothedomesticworkers.Demandsofthepetitionare:
• ThepetitionaskedtheSupremeCourttolaydownguidelinestoprotecttheworkers’rights.
• ThepetitionsoughttherecognitionofdomesticworkundertheMinimumWagesAct,1948.
• TheirworkhoursshouldbereducedtoeightadayandtheyshouldbegivenamandatoryweeklyoffasabasicrightunderArticle21.
• Domesticworkerisapersonwhoisinvolvedindomesticworklikecleaning,washing,cookingetc.He/sheplaysanimportantroleinthewellbeingofthefamilybutareoftenneglectedandabusedbythemembersoffamilyandthesociety
22
Constitutional provisions
• Article23oftheConstitutionprohibitstrafficinhumanbeingandbeggarandothersimilarformsofforcedlabour.
• Article24oftheConstitutionprohibitsemploymentofchildrenbelow14yearsofageinfactoriesandhazardousemployment.Thisprovisioniscertainlyintheinterestofpublichealthandsafetyoflifeofchildren.
• Article43requirestheStatetotakesteps,bysuitablelegislationorinanyotherwaytosecuretheparticipationofworkersinthemanagementofundertakings,establishmentsorotherorganizationsengagedinanyindustry.Article43referstoa“livingwage”andnot“minimumwage”.The
www.amritaias.com | [email protected] | +91 85890 60000
120
conceptoflivingwageincludesinadditiontothebarenecessitiesoflife,suchasfood,shelterandclothing,provisionsforeducationofchildrenandinsuranceetc.
Related acts and policies
• TheUnorganisedWorkers’SocialSecurityAct2008:TheStateGovernmentsaremandatedtoregistertheUnorganisedWorkersandtoprovidebenefitsofwelfareschemesotherthanthethreebasicsocialsecurityschemesoftheCentralGovernmenti.e.(i)lifeanddisabilitycover,(ii)healthandmaternitybenefits,and(iii)oldageprotection.
» EnvisagescreatingNationalSocialSecurityBoardwhichwillbechairedbyUnionMinisterforLabourandEmployment&DirectorGeneral(LabourWelfare)asMember-Secretary[bothex-officio].
» EnvisagescreatingStateSocialSecurityBoardatstatelevelwhichwillbechairedbyMinisterforLabourandEmploymentoftheconcernedstate&thePrincipalSecretaryorSecretary(Labour)asMember-secretary[bothex-officio].
• NationalPolicyonSkillDevelopment:Thetargetgroupforskilldevelopmentcomprisesallthoseinthelabourforce,includingthoseenteringthelabourmarketforthefirsttime(12.8millionannually),thoseemployedintheorganizedsectorandthoseworkingintheunorganizedsector.Indiahassetatargetofskilling500millionpeopleby2022.
www.amritaias.com | [email protected] | +91 85890 60000
121
Issues in unorganized sector
• Issuesofdomesticworkers
» NGOCommonCausesaystheyarepronetoviolenceandabuseatthehandsoftheiremployersandplacementagencies
» Absenceofproperdocumentationincreasestheirrelianceonemployerstoaccesssocialsecuritybenefits.
» Indiawitnesseda120%increaseindomesticworkersinthedecadepostliberalization.
» domesticworkfallsunderthepurviewofstatesphere
General issues
» Insufficientlabourlawscauseslowregulatoryframework.
» Nosocialsecurityaffectingtheirconsumptionpatternandoverallsocialdevelopment.
» Noguaranteedminimumwagesandtemporarynatureofthework.
» BondedlabourandChildLabourprevails.
www.amritaias.com | [email protected] | +91 85890 60000
122
» ForworkingWomenissueofharassmentatworkplaceishigherthanformalworkplaces.
» Lowliteracyratesamongthemreducestheirdemandingpower.
» Lowincomes
» Vulnerabletodiseasesduetolackofhygiene
Scheme for the unorganised sector in India
• AamAdmiBimaYojna
• RashtriyaSwasthyaBimaYojna
• AtalPensionYojana
• JananiSurakshaYojana
• NationalFamilyBenefitScheme
Way forward
• DiscussionsareunderwayregardingaPolicyforDomesticWorkers,thesalientfeaturesofwhichareasfollows:
» InclusionofDomesticWorkersintheexistinglegislations
» RegistrationofDomesticworkers.
» Righttoformtheirownassociations,tradeunions
» Righttohaveminimumwages,accesstosocialsecurity,protectionfromabuse,harassment,violence
» Righttoenhancetheirprofessionalskills
» ProtectionofDomesticWorkersfromabuseandexploitation
» DomesticWorkerstohaveaccesstocourts,tribunals,etc.
» Establishmentofamechanismforregulationofplacementagencies.
• ManyoftheStateGovernmentlikeRajasthan,Kerala,Punjab,TamilnaduandTripurahaveincludeddomesticworkersinthescheduleoftheMinimumWagesActandworkers
www.amritaias.com | [email protected] | +91 85890 60000
123
are,therefore,entitledtofilecasesbeforetheconcernedauthoritiesincaseofanygrievanceinthisregard.Theseshouldbefollowedbyotherstatesaswell
• IndianeedtoratifyInternationalLabourOrganisation’sConvention189onDecentWorkforDomesticWorkers.
www.amritaias.com | [email protected] | +91 85890 60000
124
RCEP AND RECENT DEVELOPMENT: INDIA
Context
• Withjustabout40%oftheagendaitemshavingbeenresolved,thereisstillalongwaytogobeforetheRegionalComprehensiveEconomicPartnership(RCEP)talksareconcluded.
• OneimpactofthiswasthatJapanalsorealisedtheimportanceofwhatweweresayingandthatIndiawasnotjustmakingatechnicalpointandthatitwasseriousabouttheissueandsotheyalsostartedsupportingIndia.
23
Background
• RegionalComprehensiveEconomicPartnership(RCEP)isaproposedfreetradeagreement(FTA)betweenthetenmemberstatesoftheAssociationofSoutheastAsianNations(ASEAN)(Brunei,Burma(Myanmar),Cambodia,Indonesia,Laos,Malaysia,thePhilippines,Singapore,Thailand,Vietnam)andthesixstateswithwhichincludeIndia,China,Australia,Japan,SouthKoreaandNewZealand.
• Intotal,thegroupingof16nationsincludesmorethan3billionpeople,hasacombinedGDPofabout$17trillion,andaccountsforabout40percentofworldtrade.Ifnegotiatedsuccessfully,RCEPwouldcreatetheworld’slargesttradingblocandhavemajorimplicationsforAsiancountriesandtheworldeconomy.
• The33rdeditionoftheASEANSummitconcludedonNovember15,2018atSuntecSingaporeConventionCentre,Singapore.
• TheSummitalsosawtheconclusionofotherrelatedsummitslike13thEastAsiaSummit(EAS),2ndRegionalComprehensive
www.amritaias.com | [email protected] | +91 85890 60000
125
EconomicSummit,(RCEP)andASEANplussummits.TheHeadsofparticipatingcountriesofRegionalComprehensiveEconomicPartnership(RCEP)alongwiththeASEANMembersandASEAN’sFreeTradeAgreement(FTA)partnersAustralia,China,India,Japan,Korea,andNewZealandattendedthe2ndRCEPSummitonNovember14,2018inSingapore.
History
• RCEPnegotiationswereformallylaunchedinNovember2012attheASEANSummitinCambodia.
• Itaimstocovergoods,services,investments,economicandtechnicalcooperation,competitionandintellectualpropertyrightsunderitsambit.
• RCEPisviewedasanalternativetotheTrans-PacificPartnership(TPP),aproposedtradeagreementthatincludesseveralAsianandAmericannationsbutexcludesChinaandIndia.
Importance of RCEP
• TheRCEPmembercountriesrepresent49%oftheworld’spopulationandaccountsfor30%ofworldGDP.Italsomakesup29%ofworldtradeand26%ofworldFDIinflows.
• AccordingtoestimatesiftheRCEPisimplementeditwouldbringlargeincomegainstonotonlyAsiabuttheworldeconomy.
• RCEPwillalsoreducetheoverlappingbetweenAsianFTAs.
• RCEPwillreducethetradebarriersinAsiaandthenewruleswillbeconsistentwithWTOagreements.
• RCEPwillpromoteeasierFDIflowsandtechnologytransfersbymultinationalcorporations
• RCEPandprotectionism:Withriseofprotectionism,RCEPisimportantforpromotingfreetradeintheregion
www.amritaias.com | [email protected] | +91 85890 60000
126
Achievements on 2nd RCEP Summit & 7th RCEP Inter-sessional Ministerial Meeting concluded in Singapore
• Reaffirmedourcommitmentmadeatthelaunchofthenegotiationstoachieveamodern,comprehensive,high-qualityandmutuallybeneficialeconomicpartnershipagreementestablishinganopentradeandinvestmentenvironmentintheregiontofacilitatetheexpansionofregionaltradeandinvestmentandcontributetoglobaleconomicgrowthanddevelopment.
• UndertookthecollectivecommitmenttodeliverontheexpeditiousconclusionoftheRCEPnegotiationstofosteranopen,inclusive,andrules-basedtradingsystem,anddemonstratetotheworldthatitispossibletomaketradeworkforall.
• Leadersaredeterminedtoconcludeamodern,comprehensive,highquality,andmutuallybeneficialRCEPin2019.
• ReiteratedthevalueofcontinuedengagementwithvariousstakeholdersoftheRCEP
Burning issues
• Hugeeconomicdisparitiesamongthenegotiatingcountriesarelikelytoposeachallenge
• AninevitablesourceoftrustdeficitbetweenChinaandtherestwhichhasthepotentialtoconstrainregionaleconomiccooperationisChina’saggressiveposturesonterritorialdisputeswithJapanandIndiaandwithASEANmembercountriesontheSouthChinaSeadisputes.ThiscanposeasahurdleinfinalnegotiationofRCEP
• Theexisting5ASEAN+1and23ratifiedbilateralFTAs,varyinggreatlyintheirterms,poseasignificanthurdletoRCEPnegotiations.
• ThelackofcommonalityacrossFTAsandvaryinginternal
www.amritaias.com | [email protected] | +91 85890 60000
127
policiesofcountrieswouldprovetobeadifficulttasktoharmonizeandconsolidateunderRCEP.
Disputes with India
• Skewedtradespectrum:NITIAayognotesaidwhiletradeagreementsareameanstopromotebilateraltrade,withbothpartiesbenefitingasaresultoftradecomplementarities,withChina,India’stradeseemstobeskewedandChina’scapacityoverhanginmostsectorsmayleadtoasurgeofimportsintoIndiawithverylimitedaccessforIndianexportstotheChinesemarket.
• Inagricultureandalliedproducts,theplantationsectorisalreadyreelingfromtheimpactoftheIndia-ASEANFTAevenwithrelativelyhighprotectionofagricultureandatariff-coverageof73-80percent.Iftariffcutscover92-80percentofproducts,theimpactwillbehuge.Ontheotherhand,NewZealand’sexport-orienteddairyproductswilldecimateIndia’sgrowingdairysector,whichisstilllargelysmall-scale.
• ImpactonManufacturing:Accordingtocivilsocietyrepresentatives,reductionofimportdutiestopromoteglobalvaluechainwillleadtomasslayoffs,lowwagesandexploitationoflabour.
• JapanandSouthKoreahasaskedIndiatoeliminateexportrestrictionsonmineralsandrawmaterials.Thismaythreatendomesticrawmaterialavailabilityforindustrialisationandencourageover-mining.Indianexpertsopinethatthiswouldleadtoanewformofneo-colonialism.
• E-commercecommitments:ItwillallowcompaniessuchasAlibabafromChinatodisplaceIndianmanufacturingespeciallyintheSMEsegment.
• Intellectualpropertyrights:severalmembershavebeenpushingprovisionsthatgobeyondTRIPS,withseriousadverseconsequencesforaccesstogenericmedicinesmanufacturedinIndia.
• Demandforlabourmovement:AtRCEPnegotiations,IndiahasdemandedforbothMode3(investments)andMode
www.amritaias.com | [email protected] | +91 85890 60000
128
4(movementofpeople)withaRCEPbusinessvisaforprofessionals.
• However,RCEPcountrieslikeAustraliaandSingaporehavebeenunwillingtoaccommodateIndia’sdemandstoliberalisetheirservicesregimeandallowfreermobilityofIndianworkers
Way forward
• Beforegettingintoanymultilateraltradedeal,IndiashouldreviewitsexistingFTAsintermsofbenefitstovariousstakeholderslikeindustryandconsumers,tradecomplementaritiesandchangingtradepatternsinthepastdecade.
• NegotiatingbilateralFTAswithcountrieswheretradecomplementaritiesandmarginofpreferenceishighmaybenefitIndiainthelongrun.
• Well-balancedFTAdealsaddressingtheconcernsofallthestakeholdersistheneedofthehour.
Conclusion
ConnectivityistobetheprimaryfocusbetweenIndiaandASEANmembers. Even though India doesn’t have adequate resourceslikeChina,acollaborativeeffortslikeAfrica-Asiagrowthcorridorcould achieve tangible results. Further strengthening the FTYAbetweenthetwoblockswilladdnewdimensionstotheageoldrelationship.Arelationshipbasedonmutualtrustandacceptanceisonlysustainableforlong.
www.amritaias.com | [email protected] | +91 85890 60000
129
WATER DEFICIT IN INDIA
Context
• Waterscarcityinvolveswaterstress,watershortageordeficits,andwatercrisis.Thismaybeduetobothnatureandhumans.Mainfactorsthatcontributetothisissueincludepoormanagementofresources,lackofgovernmentattention,andman-madewaste.
• GlobalWaterMonitor&ForecastWatchListhasbeenreleasedbyIScience(USbasedlimitedliabilityCorporation).Asperthereport,waterdeficitswillincreaseandintensifyinIndiain2019.
• Adroughtisaperiodofbelowaverageprecipitationinagivenregionresultinginprolongedshortagesinitswatersupply,whetheratmospheric,surfacewaterorgroundwater.Aftertwosuccessivedryyears,330mpeopleinIndia,aroundaquarterofthepopulation,arefacingacutewatershortages.
24
Reasons
• Agriculture
» Excessiveuseofgroundwaterforagriculturehasalsocausedastrainintheresource.Eg:-ineffectivetechniquesusedforirrigationalignedwithmismanagement
» Between85and90percentofallwaterconsumedinIndiaisusedbytheagriculturalsector
» Subsidizedenergyandwaterpumpsbecausefarmersformalargeportionofvotingpopulation.Usingsubsidizedelectricity,farmerspumpgroundwateratwill,drawingupmoreannuallythanChinaandAmericacombined.
www.amritaias.com | [email protected] | +91 85890 60000
130
» Maharashtraisagoodexampleofthisasitssugarbelttakesuponlyfourpercentoffarmlandbutconsumesovers70percentofthestate’sirrigationwater.
• Pollution
» increasedamountofsolidwastesinwatersystemssuchaslakes,canalsandriversalsoheavilypollutethewater
» Upto80percentofallsurfacewaterinIndiaispolluted.
» Poorsewagetreatmentfacilities,littlepublicsanitation,poverty,industrialrunoffandalackofgovernmentregulation.
• demandforfreshwaterisincreasingwiththegrowingpopulation
• Lackofstrictstateregulationongroundwaterdevelopmenthascausedastrainontheamountoffreshwateravailable.
• Indifferencefrombureaucraticpowersandconstantneglecthascausedtheproblemtointensify
• Deforestation,landconversionanddegradation,aswellasurbanencroachmentduetoillegalconstruction,posemajorthreatstothewaterbearingcapacity
Impacts and remedies
Impacts
• Fallingwaterlevelswilladverselyaffecttheagriculturalindustry,whichisalmostentirelycerealbasedandthereforeextremelywaterintensive.
• Astrugglingagriculturalindustrymeansthethreatofunemploymentforapproximately50percentofIndia’sworkforce,aswellasimplicationsforfoodsecurityandhumansecurity
• Incidentsoffever,infection,dehydration,vomitingandkidneyailments
Remedies
www.amritaias.com | [email protected] | +91 85890 60000
131
• NationalRiverLinkingProject
» Theconceptoflinkingriversisnotuncommon,Chinaintroducedasimilarprojectoveradecadeago
» Interlinkingofriverswillhelpwaterscarceareastohavewaterthroughouttheyear.
• ImplementingIsrael’swatermanagementsystemsandtechnologies
• Longterminvestmentineducationalprograms,socialawarenesscampaigns,improvedinfrastructureandfacilities,andwaterdiplomacy
• Rainwaterharvestingcanprovidethecountrywithreliablewatersuppliesthroughouttheyear.
• Buildingcheckdamsonriverbedswillimprovegroundwaterlevels.
• Sustainableagriculturalpractices:Farmersshouldbetrainedandencouragedtoswitchtodripirrigation.
• TheWorldBank’sWaterScarceCitiesInitiativeseekstopromoteanintegratedapproach.Itaimsatmanagingwaterresourcesandservicedeliveryinwater-scarcecitiesasthebasisforbuildingclimatechangeresilience.
• Indigenouswaterharvestingsystemsneedtoberevivedandprotectedatthelocallevel.
• TheimplementationoftheUnitedNationsConventiontoCombatDesertification(UNCCD)hasasignificantroleinthesustainableavailabilityofclean,adequateandsafewater.Eg:-InnerMangolia(kubuqi)modelofcombatingdesertificationcanbeimplemented
Related information and data
• 18%oftheworld’spopulationwhichresidesinIndiaonlyhasaccessto4%ofusablewatersources.
• Indiaissufferingfrom‘theworstwatercrisis’initshistorywithabout60crorepeoplefacinghightoextremewaterstressand
www.amritaias.com | [email protected] | +91 85890 60000
132
abouttwolakhpeopledyingeveryyearduetoinadequateaccesstosafewater,NITIAayogsaid
• CapeTowninSouthAfricawasfacingtheprospectofallitstapsrunningdrybyJune-Julythisyear.Bengaluruisrankedsecondinthelistof11globalcitieswhichmightfacethethreatofrunningoutofdrinkingwater.
• AccordingtoaforecastbytheAsianDevelopmentBank,Indiawillhaveawaterdeficitof50%by2030.
Institutions and modalities in its working
• InternationalConferenceonSustainableWaterManagementundertheaegisofNationalHydrologyProject,UnionMinistryofWaterResources,RiverDevelopmentandGangaRejuvenationisbeingorganisedbyBhakraBeasManagementBoard(BBMB)inMohali.Itaimstofostertheparticipationofanddialoguebetweenvariousstakeholders,includinggovernments,thescientificandacademiccommunities,soastopromotesustainablepoliciesforwatermanagement
• CompositeWaterManagementIndex(CWMI)bytheNITIAayograisesthreemainissuesrelatedtodata:limitedcoverage,unreliabledataandlimitedcoordinationandsharing.
• UNESCO’sWorldWaterDevelopmentReportstatesthatIndiaisthelargestextractorofgroundwaterintheworld
• CouncilofScientificandIndustrialResearch,IndianInstituteofToxicologyResearch(CSIR-IITR)hasdevelopedaDrinkingWaterDisinfectionSystemwithtradenameOneerTM.Itisusefulforcontinuoustreatmentofwaterandeliminatesalldiseasecausingpathogenssuchasvirus,bacteria,fungi,protozoaandcyst.
E. Schemes
• NationalWaterMission:GovernmentofIndiahasestablishedNationalWaterMissionasoneoftheeightNationalMissionsundertheNationalActionPlanonClimateChange(NAPCC).Thegoalsare:-
www.amritaias.com | [email protected] | +91 85890 60000
133
» Comprehensivewaterdatabaseinpublicdomainandassessmentoftheimpactofclimatechangeonwaterresource,
» Promotionofcitizenandstateactionsforwaterconservation,augmentationandpreservation,
» Focusedattentiontovulnerableareasincludingover-exploitedareas,
» Increasingwateruseefficiencyby20%,and
» Promotionofbasinlevelintegratedwaterresourcesmanagement.
• AtalBhujalYojana:Theobjectiveofschemeistorechargegroundwaterandcreatesufficientwaterstorageforagriculturalpurposes.Italsofocusonrevivalofsurfacewaterbodiessothatgroundwaterlevelcanbeincreased,especiallyintheruralareas.Itwillgiveemphasistorecharginggroundwatersourcesandensureefficientuseofwaterbyinvolvingpeopleatlocallevel.
• UnionMinistryofWaterResourceshasinstitutedNationalWaterAwardswithobjectivetoencourageallstakeholderstomanagetheirwaterresourcesefficientlyandcreatewaterconsciousnessinthecountry.
• JalKrantiAbhiyan,whichaimsatturningonewaterscarcevillageineachdistrictofthecountryintowatersurplusvillagewaterthroughaholisticandintegratedapproachbyadoptingconservationandmanagementtechniques
• JalSwavalambanAbhiyan(JSA):ItisaprogrammeofRajasthanGovernment.IthasturnedouttobeasuccessinPratapgarhdistrict.Inthedistrictthegroundwatertablehasincreased,greenagriculturalfieldshaveexpandedandnotankerswithdrinkingwaterhadtobesenttoasmanyas94villagesthisyearis
National Water Commission
• Inoneofthemostsignificantreformsinthewatersectorinalongtime,thegovernmentisintheprocessoforderinga
www.amritaias.com | [email protected] | +91 85890 60000
134
completerestructuringoftheorganizationsresponsibleforregulatingtheuseofwaterresources,withtheobjectiveofbringingingreaterefficiency,betterplanningandincreasedemphasisonconservationofwater.
» CentralWaterCommission(CWC):Since1945theCWChasbeentaskedwithmanagingsurfacewateranditsassociatedstructuressuchasdamsandbarrages,overseesirrigationprojects,floodmanagementanddrinkingwatersupply.
» CentralGroundWaterBoard(CGWB):ontheotherhand,islargelyconcernedwiththequalityofgroundwater.
• AcommitteeunderMihirShah,aformermemberofthethenPlanningCommissionofIndia,setupbytheMinistryofWaterResourceshadrecommendedthataNationalWaterCommission(NWC)besetup,whichwillsubsumetheCentralWaterCommission&theCentralGroundWaterBoard.ThekeyfunctionsoftheNWCwillinclude:
» incentivisestategovernmentstoimplementirrigationprojectsinreformmode,
» leadthenationalaquifermappingandgroundwatermanagementprogram,
» developalocation-specificprogramforrejuvenationofrivers,etc.
www.amritaias.com | [email protected] | +91 85890 60000
135
G20 SUMMIT AND ITS CONTEMPORARY RELEVANCE
Context
• IndiawillhostG20SummitIn2022,whenitcelebratesits75thyearofIndependence.ItwasannouncedbyPrimeMinisterNarendraModiduringongoingG20meetofinternationalgroupinginBuenosAires,capitalofArgentina.
• ThiscomesafterItalyacceptedIndia’sformalrequesttohostthissummitin2021asearlieritwasgoingtohostitin2022.
• Thegroupaccountsfor85percentofworldGDP.
• Itaccountsfortwo-thirdsofworldpopulation.
• IthasplayedkeyroleinsteeringtheworldoutofGlobaleconomiccrisisin2008-2010.
25
Structure & functions
• TheG20(Groupof20)isaninternationalforumwhichincludes19oftheworld’slargesteconomiesandtheEuropeanUnion.
• ItcameintheaftermathofAsianfinancialcrisisof1999andisaforumofgovernmentsandcentralbankgovernorsfrom20majoreconomies.
• Itspurposeistostudy,review,andpromotehigh-leveldiscussionofpolicyissuespertainingtothepromotionofinternationalfinancialstability
• Aimistodiscusspolicypertainingtothepromotionofinternationalfinancialstability
• TheG20operateswithoutapermanentsecretariatorstaff.
www.amritaias.com | [email protected] | +91 85890 60000
136
• Thegroup’schairrotatesannuallyamongthemembersandisselectedfromadifferentregionalgroupingofcountries.
Objectives of G20
• Policycoordinationamongitsmembersinordertoachieveglobaleconomicstabilityandsustainablegrowth;
• Topromotefinancialregulationsthatreducerisksandpreventfuturefinancialcrises;
• Tocreateanewinternationalfinancialarchitecture.
• Inclusivedecisionmakingformatthatwouldbringinthelargestdevelopingeconomiesasequalpartners
Achievements so far
• reshapingthegovernanceofglobalfinancebyimplementingmacro-prudentialpolicies,
• Developingstrictrulesonthe“toobigtofail”problem
• IncreasingthelendingcapacityoftheInternationalMonetaryFund(IMF)
• Collectingricherinformationontheshadowbankingsystem.
• G20playedacrucialroleinstrengtheningtheinternationalfinancialregulatorysystem,includingbettercoordinationacrosscountries.
• Itisaninvaluableforum,allowingleadersoftheworld’smajoreconomiestoworktogethertoliftgrowthinmutually-supportiveways
• Ithelpstoreformtheglobalfinancialsystemandtopreventfuturecrisesbyenablingthecountriestoaligntheirdomesticpoliciestothedecisionstakenbythegroup.
India’s role in it
• Indiaiscallingforstructuralreformstopusheconomicgrowth
• Indiaispushingforcheckingtaxevasiontofightcorruption,chokingterrorfunds,cuttingcostofremittancesandmarket
www.amritaias.com | [email protected] | +91 85890 60000
137
accessforkeydrugs.
• IntheHangzhouSummit,ModiurgedG-20nationstoeliminatesafehavensforeconomicoffenders,unconditionallyextraditemoneylaunderersandendexcessivebankingsecrecy.
• Indiaisexpectedtoplayabalancingroleinthetimesoftradewars
• Baseerosionandprofitshifting(BEPS)isofutmostsignificanceforIndia,duetotheirrelianceoncorporatetax,particularlyfrommultinationalenterprises.
Lacunae in its functioning
• Nopermanentsecretariat:informalstructureoftheG20,witharotatingchairandnopermanentsecretariat,meansthatagendasaredeterminedeachyearbythechairandsocanswingwidely,andformalmechanismstomonitorfollow-throughoncountries’publiccommitmentsareweak
• Insufficientlylegitimate:G20excludesmorethanfour-fifthsoftheworld’scountries,causingsomecritics(andexcludedcountries)todenounceitasunrepresentativeandthereforeinsufficientlylegitimate.Includingenoughoftherightactorsatthetableisaprerequisiteforeffectiveglobalcoordination,thesesamecriticscontendthatthislackofrepresentativelegitimacyalsounderminestheG20’seffectiveness.
• Bias:TheG20iscomposedof20largeandimportanteconomies.Thiscreatesasituationinwhichsmallcountrieshavetofollowtheirbigbrothers,inordertosurvive.
• Failedtoliveuptotheexpectations:Financeministersandheadsofstatenowcometothetablewiththeirhandstied,theirpositionsdeterminedinadvancebytheirgovernmentsandaformalscriptthatprecludesmeaningfulandcreativecompromises.
• lessefficient:Meetingshavebecometalkfestsandphotoopportunities.Thewillingnesstocometogetherinthehostileenvironmentoflate2008andearly2009hasentirelydissipated.TheG20agendautterlyfailstobreakwiththetired,
www.amritaias.com | [email protected] | +91 85890 60000
138
brokenpoliciesofthefreemarket.
• lackofIMFreformshavebeendisappointingaspect.
• differencesofopinionindiscussions,especiallyduetodifferentdomesticinterests.
What needs to be done?
• Negotiatingashortsetofprinciples:AG20charterwouldverybrieflysummarizethescopeoftheG20anditsmainprinciplesofoperations.
• Settingupasecretariat:Asecretariatmeanstheinevitablebureaucratizationoftheprocess.However,averylightonewouldbringconsistencyovertheyears.Inordertoavoidexcessiveinertia,theprinciplethatnooneworkingforthesecretariatcanstayforalongertermthan,say,4years,couldbeadopted.
• Wideningtheintervalsbetweensummits:ThesummitsgiveanimpulsetotheG20buttheyalsohijackdiscussionsonglobalissuesinfavourofmoretraditionaldiplomacyandcompetitionformediaattention.Anideawouldbetoallowforlongerintervalsbetweensummits,saytwotothreeyears.
• Keepingsummitsinasinglelocation:Summitstendtoturnintobeautycontestsbetweenpresidencies.Onepossibilitytoavoidthisistokeepsummitsinasinglelocation.GiventheriseofAsia,itwouldbelogicalthatthislocationbeinAsia.
• Providinganarchitecturebasedontermedpresidents:managementoftheG20bythesuccessivepresidenciesisleadingtoagendaoverstretching.Thepresidencyforatermof3yearsisidealforareasonablefollowthroughonvariousproposals.
• Accumulatedlayersofsidemeetingscontributetotheoverallbloatingoftheprocess.Simplifyingtheprocedureoftheforumisanimportanttask.
• Proliferationofinitiativeswhicharereferredtointheofficialcommuniquéswithlittleimpactneedtoberationalized.
www.amritaias.com | [email protected] | +91 85890 60000
139
Practice question
1. Indiahopestoplayaconstructiveroletohelpbuildamiddlegroundconsensusamongtheworld’smajoreconomies.DoyouthinktheG20isaviableplatformforrealisingsuchambitions?(200words)
www.amritaias.com | [email protected] | +91 85890 60000
140
RURAL ELECTRIFICATION
Context
• On28thofApril2018,PrimeMinisterNarendraModihadannouncedthatallvillagesinthecountryhavenowaccesstoelectricity.
26
Rural electrification in India
• Ruralelectrificationisconsideredtobethebackboneoftheruraleconomy.
• TheelectricitygenerationcapacityinIndiaisthefifthlargestintheworld.
• Indiaisthesixthlargestconsumerofelectricityandaccountsfor3.4percentoftheglobalenergyconsumption.
• Indiahasfourcroreun-electrifiedruralhouseholds.
• Theyear2022,hasbeenearmarkedforachievingthetargetof“24x7PowerforAll”.
• Achievingthistargetwouldmeanelectrifyingmorethan7lakhhouseholdseverymonth!
According to Central Electricity Authority (CEA), as per the new definition, a village would be declared as electrified, if:
• BasicinfrastructuresuchasDistributionTransformerandDistributionlinesareprovidedintheinhabitedlocalityaswellastheDalitBastihamletwhereitexists.
• ElectricityisprovidedtopublicplaceslikeSchools,PanchayatOffice,HealthCentres,Dispensaries,Communitycentresetc.
• Thenumberofhouseholdselectrifiedshouldbeatleast10%ofthetotalnumberofhouseholdsinthevillage
www.amritaias.com | [email protected] | +91 85890 60000
141
Rural electrification has five major facets
• SettingupofRuralElectricityInfrastructure
• Providingconnectivitytohouseholds
• Adequatesupplyofdesiredqualityofpower
• Supplyofelectricityataffordablerates
• Providingclean,environmentallybenignandsustainablepowerinefficientway.
Rural Electrification provides for:
• Increaseinagricultureyield.
• BusinessofSmallandhouseholdenterprisesshallgrowresultingintonewavenuesforemployment.
• ImprovementinHealth,Education,Banking(ATM)services.
• Improvementinaccessibilitytoradio,telephone,television,internetandmobile.
• Bettermentinsocialsecurityduetoavailabilityofelectricity.
• Accessibilityofelectricitytoschools,panchayats,hospitalsandpolicestations.
• Ruralareasshallgetincreasedopportunitiesforcomprehensivedevelopment.
Energy source and Percentage Share in installed capacity
• Thermal–64.75%
• Nuclear–2.78%
• Hydro–21.73%
• Otherrenewableenergysources–10.73%
Related Policies
NationalElectricityPolicy2005
• Incompliancewithsection3oftheElectricityAct2003theCentralGovernmentnotifiedtheNationalElectricityPolicy.
www.amritaias.com | [email protected] | +91 85890 60000
142
• TheNationalElectricityPolicyaimsatlayingguidelinesforaccelerateddevelopmentofthepowersector,providingsupplyofelectricitytoallareasandprotectinginterestsofconsumersandotherstakeholderskeepinginviewavailabilityofenergyresources,technologyavailabletoexploittheseresources,economicsofgenerationusingdifferentresources,andenergysecurityissues.
• TheNationalElectricityPolicywasevolvedinconsultationwithandconsideringviewsoftheStateGovernments,CentralElectricityAuthority(CEA),CentralElectricityRegulatoryCommission(CERC)andotherstakeholders.
The aims and objectives of the policy are as follows
• AccesstoElectricity-Availableforallhouseholdsinnextfiveyears
• AvailabilityofPower-Demandtobefullymetby2012.Energyandpeakingshortagestobeovercomeandadequatespinningreservetobeavailable.
• SupplyofReliableandQualityPowerofspecifiedstandardsinanefficientmannerandatreasonablerates.Percapitaavailabilityofelectricitytobeincreasedtoover1000unitsby2012.
• Minimumlifelineconsumptionof1unit/household/dayasameritgoodbyyear2012.
• FinancialTurnaroundandCommercialViabilityofElectricitySector.
• Protectionofconsumers’interests.
National Rural Electrification Policy, 2006
• Goalsincludeprovisionofaccesstoelectricitytoallhouseholdsbytheyear2009,qualityandreliablepowersupplyatreasonablerates,andminimumlifelineconsumptionof1unit/household/dayasameritgoodbyyear2012.
• Forvillages/habitationswheregridconnectivitywouldnotbefeasibleornotcosteffective,off-gridsolutionsbasedon
www.amritaias.com | [email protected] | +91 85890 60000
143
stand-alonesystemsmaybetakenupforsupplyofelectricity.Wherethesealsoarenotfeasibleandifonlyalternativeistouseisolatedlightingtechnologieslikesolarphotovoltaic,thesemaybeadopted.However,suchremotevillagesmaynotbedesignatedaselectrified.
• Stategovernmentshould,within6months,prepareandnotifyaruralelectrificationplanwhichshouldmapanddetailtheelectrificationdeliverymechanism.Theplanmaybelinkedtoandintegratedwithdistrictdevelopmentplans.Theplanshouldalsobeintimatedtotheappropriatecommission.
• Grampanchayatshallissuethefirstcertificateatthetimeofthevillagebecomingeligiblefordeclarationaselectrified.Subsequently,theGramPanchayatshallcertifyandconfirmtheelectrifiedstatusofthevillageason31stMarcheachyear.
• Thestategovernmentshouldsetupacommitteeatthedistrictlevelwithin3months,underthechairmanshipofchairpersonoftheZillaPanchayatandwithrepresentationsfromdistrictlevelagencies,consumerassociations,andimportantstakeholderswithadequaterepresentationofwomen.
• Thedistrictcommitteewouldcoordinateandreviewtheextensionofelectrificationinthedistrictandconsumersatisfaction,etc.
• PanchayatRajinstitutionswouldhaveasupervisory/advisoryrole.
• Institutionalarrangementsforbackupservicesandtechnicalsupporttosystemsbasedonnon-conventionalsourcesofenergywillhavetobecreatedbythestategovernment.
National policy for renewable energy-based micro and mini grids
• IntroducedbyMinistryofNewandRenewableEnergy
• Ittargetssettingupofatleast10,000projectswithaminimumcapacityof500MWby2021
• Thedraftpolicyproposestoextendenergyservicesbeyond
www.amritaias.com | [email protected] | +91 85890 60000
144
lighting.
Related Schemes
DeenDayalUpadhyayaGramJyotiYojana(DDUGJY)
• Launchedin2015.
• TheDDUGJYisoneoftheflagshipprogrammesoftheMinistryofPower.
• Theearlierschemeforruralelectrificationviz.RajivGandhiGrameenVidyutikaranYojana(RGGVY)hasbeensubsumedinDeenDayalUpadhyayaGramJyotiYojana.
SalientfeaturesofDeenDayalUpadhyayaGramJyotiYojana
• Toprovideelectrificationtoallvillages.Itwillfacilitate24×7supplyofpower.
• Feederseparationtoensuresufficientpowertofarmersandregularsupplytootherconsumers.
• ImprovementofSub-transmissionanddistributionnetworktoimprovethequalityandreliabilityofthesupply.
• Meteringatalllevels(inputpoints,feedersanddistributiontransformers.
• Microgridandoffgriddistributionnetwork&Ruralelectrification-alreadysanctionedprojectsunderRGGVYtobecompleted.
RajivGandhiGrameenVidyutikaranYojana
• RajivGandhiGrameenVidyutikaranYojana(RGGVY)waslaunchedinApril2005bymergingallongoingschemes.TheGovernmentisimplementingDecentralisedDistributedGeneration(DDG)underRajivGandhiGrameenVidyutikaranYojana(RGGVY)forelectrificationofvillageswheregridconnectivityiseithernotfeasibleornotcosteffective.
• InXIIPlanperiod,DDGhasalsobeenextendedtothegridconnectedareawheresupplyofelectricityislessthan6hoursaday.DecentralizedDistributedGeneration(DDG)canbefromconventionalorrenewablesourcessuchasBiomass,
www.amritaias.com | [email protected] | +91 85890 60000
145
Biofuels,Biogas,Minihydro,Solaretc.
• Undertheprogramme,90%grantisprovidedbyGovt.ofIndiaand10%asloanbyRuralElectrificationCorporation(REC)totheStateGovernments.RuralElectrificationCorporation(REC)isthenodalagencyfortheprogramme.
• Atpresent,RajivGandhiGrameenVidyutikaranYojana(RGGVY)hasbeensubsumedintheDeenDayalUpadhyayaGramJyotiYojana(DDUGJY)asitsruralelectrificationcomponent.
AimsofRGGVY
• Electrifyingallvillagesandhabitationsaspernewdefinition
• Providingaccesstoelectricitytoallruralhouseholds
• ProvidingelectricityConnectiontoBelowPovertyLine(BPL)familiesfreeofcharge
InfrastructureunderRGGVY
• RuralElectricityDistributionBackbone(REDB)with33/11KV(or66/11KV)sub-stationofadequatecapacityinblockswherethesedonotexist.
• VillageElectrificationInfrastructure(VEI)withprovisionofdistributiontransformerofappropriatecapacityinvillages/habitations.
• DecentralizedDistributedGeneration(DDG)Systemsbasedonconventional&non-conventionalenergysourceswheregridsupplyisnotfeasibleorcost-effective.
ProgressmadeunderRGGVY
• Mostpeoplereportedthattheyhavebenefitedfromelectricityconnectionssincetheyarenowabletousebulbs,fan,TVaswellasmobilephones.InUP,asignificantpercentofthosesurveyed(43%)reportedtohavestartedusingmobilephonesafterelectrificationsinceitbecamepossibletochargethemobilesets.InBihar,themostimportantuseofelectricitybythebeneficiaryhouseholds,asperceivedbythem,isforillumination(94.9%),followedbysecurity(89.9%),
www.amritaias.com | [email protected] | +91 85890 60000
146
communicationthroughcellularphones(42.1%),accessinginformationandentertainment(52.1%)andcomfortsbyrunningfans(18.4%).
• InMadhyaPradesh,85%ofthevillagers,inparticular,womenandchildrenfeelmoresecureandprotectedagainstwildanimals,venomousreptilesandrobbersduetoelectrifiedhouseholdsandstreetlights.
• 75%ofwomensurveyedinRajasthanstatedthattheyareabletoworkinthefieldsafterelectricityreachedtheirhomes.
• StudentsinallstatesreportedtohavebenefitedagreatdealasafterelectrificationunderRGGVY,theyarenowabletostudyforlongerhoursandalsosavemoney&timewhichtheyhadtospendonkerosenelamp.Theyalsofeelmorecomfortableduringsummerdaysduetothefansintheclass.InAndhraPradesh,88%ofbeneficiariesreportedpositiveimpactoneducation.InUP,nearly64%reportedusingelectricityforeducation,56%InMadhyaPradeshand48%InBihar.
• InJ&K,mostpeoplefeelthatsecurity&standardoflifehasincreasedafterRGGVYimplementation.Villagersareabletogetthetreatmentinthenight.Insomeofthevillages,itwasfoundthatthevillagersuseelectricalappliancesforcropprocessing.ManyshopswerealsofoundtobeelectrifiedinthevillagesthroughRGGVYline.
RemoteVillageElectrificationProgramme
• TheMinistryofNewandRenewableEnergy,GovernmentofIndiaisimplementingthisprogrammeforprovidingfinancialsupportforelectrificationofthoseremoteunelectrifiedcensusvillagesandunelectrifiedhamletsofelectrifiedcensusvillageswheregrid-extensioniseithernotfeasibleornotcosteffectiveandarenotcoveredunderDDUGJY.
• Suchvillagesareprovidedbasicfacilitiesforelectricity/lightingthroughvariousrenewableenergysources.
• SmallHydroPowerGenerationsystems,biomassgasification-basedelectricitygenerationsystems,solarphotovoltaic
www.amritaias.com | [email protected] | +91 85890 60000
147
powerplants,etc.,indistributedpowergenerationmodemaybeuseddependingupontheavailabilityofresourcesforgenerationofrequiredelectricity.
VillageEnergySecurityprogramme
• Theobjectiveoftheprojectistogobeyondelectrificationbyaddressingthetotalenergyrequirementsforcooking,electricity,andmotiveprovideaccesstoelectricitythroughrenewablestohouseholdsinremotevillagesandhamlets,whicharenotlikelytogetcoveredthroughgridextension.
• Theprojectsonvillageenergysecurityaretakenupwithaviewtodemonstratethetechno-economicparametersofthevillageenergysecurityplan,provideoperationalexperience,mobilizelocalcommunitiesandfirmuptheinstitutionalarrangements.
• Areaofcoverage:Theprojectswouldbeundertakeninunelectrifiedremotevillagesandhamletsthatarenotlikelytobeelectrifiedthroughconventionalmeans.
• GuidelinesforimplementationoftheProjects:TheprojectswouldbeundertakenbythePanchayatsdulyfacilitatedbyimplementingagenciessuchasDRDAs,forestrydepartments,NGOs,entrepreneurs,franchises,co-operatives,etc.
Preparationofproposalsfortheprojectsandidentificationofvillages/hamlets
Thevillage/hamletidentifiedshould
• Beremoteandmayincludeatribalorforest-fringevillage/hamlet.
• Haveadequateavailabilityoffallow,commonoruncultivatednon-grazinglandforraisingplantations
• Haveacohesiveandprogressivesocialstructure
• Haveaminimumof25andmaximumof200households
• Shouldbeidentifiedinconsultationwithforest,tribalandruraldevelopmentdepartments/agencies.
www.amritaias.com | [email protected] | +91 85890 60000
148
Preparationofapreliminaryproposal
• Afterselectionofthevillage/hamlet,apreliminaryproposalwouldhavetobeprepared,gotdulyendorsedbytheconcernedStateNodalAgencyandforwardedtotheMinistryforconsiderationof`inprinciple’approval.
PradhanMantriSahajBijliHarGharYojana–“Saubhagya”
• Launchedin2017.
• Itwillprovidetherequiredfinancialassistanceforstrengtheningandimprovementofinfrastructureinthepowersector.
• PradhanMantriSahajBijliHarGharYojana,orSaubhagya,toensureelectrificationofallwillinghouseholdsinthecountryinruralaswellasurbanareas.
SalientfeaturesofPradhanMantriSahajBijliHarGharYojana–“Saubhagya”
• Toensureelectrificationofallwillinghouseholdsinthecountryinruralaswellasurbanareas.
• ThebeneficiariesforfreeelectricityconnectionswouldbeidentifiedusingSocioEconomicandCasteCensus(SECC)2011data.
• Thesolarpowerpacksof200to300WPwithbatterybankforun-electrifiedhouseholdslocatedinremoteandinaccessibleareas,comprisesofFiveLEDlights,OneDCfan,OneDCpowerplug.ItalsoincludestheRepairandMaintenance(R&M)for5years.
TheoutcomeoftheSchemeisasfollows:
• EnvironmentalupgradationbysubstitutionofKeroseneforlightingpurposes
• Improvementeducationservices
• Betterhealthservices
• Enhancedconnectivitythroughradio,television,mobiles,etc.
• Increasedeconomicactivitiesandjobs
www.amritaias.com | [email protected] | +91 85890 60000
149
• Improvedqualityoflifeespeciallyforwomen
Issues
• Definitionissue:Only1in10householdsneedstohaveelectricitysupplyforthevillagetobeofficiallyelectrified.Accordingto2011census,only55.3%ofallruralhouseholdshadaccesstoelectricity
• Qualityissue:Around67%ofelectrifiedvillagessufferfromerraticandunreliablepowersupply.Lowvoltagewaswidelyreported.
» Manyruralconsumersweredispleasedwiththepoorpowersupplyandcitedreliability,quality,duration,andaffordabilityaskeyconcerns.
» Thedistributiontransformerscateringtovillageshadthecapacitytosupporttheloadofonly10%ofthehouseholdsandthustheinstancesofoverloadingandtransformerbreakdownsaresignificant.
» Only7%–10%rurallocationsreceivesupplyduringthefulleveninghours(5pmto11pm).
» InBihar,JharkhandandUP,morethanone-thirdofelectrifiedhouseholdsreceivedlessthanfourhoursofsupplyduringthedayandvoltagefluctuationsarealsocommon.
• Meteringissue:Morethan28%electrifiedvillagesreportedoverchargingandad-hocbilling.One-timeconnectionchargesalsodifferedfromvillagetovillage.
» Inruralareas,evidencesofsupplybeinggivenwithoutpropermetersormetersnotbeingreadcorrectly/andbillsbeingissuedwithoutpropermeterreadingsarecommonplace.
» Further,therearealsoinstancesofbillingdelays,particularlyinissuingthefirstbillafterconnection.Thisincreasesthelikelihoodofpaymentdefaultsleadingtodisconnectionofsupply.
www.amritaias.com | [email protected] | +91 85890 60000
150
• Accountabilityissue:52%villagesfaceissueswithcontractors,repairpersonsandpowerdistributioncompanies.Eithernooneturnsuptoaddresscomplaintsorrepairsaredoneafterpayingbribesorresidentsgetrepairsdoneattheirowncost.
• Inaccessibility:Geographicalterrainisposingaproblemtogridexpansioninatleast13%ofallvillages.
• NPAissue:Banksdonotlendtomini-griddevelopersduetopoorrecoveryofloans
• Kerosenedependence:Despitehavingelectricityconnection.
• Affordabilityissue:.Amongthemostenergydeprivedstates,surveyshavefoundthatwhilemostvillagesandmorethantwo-thirdsofthehouseholdshadelectricityconnections,lessthan40percenthadmeaningfulaccesstoelectricity.
» FinancialIssues:Highupfrontcostisthemajorreasonbehindconsumerdisinterestintakingupandsustaining(bytimelypayingofbills)anelectricityconnection.
• Implementationandoperationalroadblocks:Whilethereisprogressingivingconnections,networkinvestmentsforruralelectrificationhavebeenslowerthanplanned.Lackoftimelynetworkinvestmentsjeopardisestheprovisionofreliable,affordablepowersupply.
» Operationalissues:InthefirstphaseofRGGVY,ruralfranchiseeswereexpectedtomanagedistributionoperationsinnewlyelectrifiedareas.However,mostofthemarenotoperationalandDDUGJYdoesnotenvisagesuchfranchisees.
Way forward
AccesstoelectricityisacornerstonetothedevelopmentofandessentialforbetterqualityoflifeforruralIndia.GovernmentneedtooutlineaholisticapproachtoRuralElectrification.
• MeteringanddatamanagementusingICT:Useinformationtechnologytomonitormeteringatfeederanddistributiontransformerlevelstoallowproperauditingofpowersupply.
www.amritaias.com | [email protected] | +91 85890 60000
151
» ParameterssuchasDTfailurerate,hoursofsupply(especiallyduringeveninghours),meteringandbillinginformation,informationonconsumerdisconnections,newconnectionsforentrepreneurialuse,electrificationofruralinstitutions.,couldbetrackedandreportedonthenationaldashboardsonamonthlybasisforeverydistrictordivision.
» Withusagetechnologytomonitorhoursofsupply,thedurationofsupplyandinterruptionscanberecordedwithoutmanualinterventionandtrackedatadisaggregatedlevel.ThisinformationcanbeusedbySERCsandconsumerstomakeDISCOMsmoreaccountableforpowersupply.
• Expansion:
» Thefirststeptowardsthetargetwouldbetoprovidenewconnectionstoun-electrifiedhouseholdsandlegalisingexistingillegalconnections.
» Improvinguptakeofconnectionsbyaddressingfinancialhurdlesandawarenessbarriersistobetakenup.
• Financialconstraint:WhileBPLhouseholdsalreadyreceiveafreeconnectionundertheDeenDayalUpadhyayaGramJyotiYojana(DDUGJY),APLfamiliescouldbegivenalow-costEMIbasedconnection.
• Awareness:Empoweringandencouraginglocalauthoritiestoorganiseawarenesscampaignsandenrolmentcampsinhabitationsexhibitinglimitedawarenessarealsoessential.
• Bestpractice:Biharhascurrentlyevolvedagoodmodelbothawarenesscampaigns&subsidyforAPLfamilies.
• Supplysituation:Improvingthesupplysituationforalreadyelectrifiedhouseholdsistobedone.
• DISCOMreforms:DISCOMsneedtobetterplanfortheirinfrastructure,factoringinnear-termincreaseindemand,strengtheningmaintenance,andimprovingsupply.
» Tobettermanagetheirservices,discomscouldexplore
www.amritaias.com | [email protected] | +91 85890 60000
152
afranchiseemodelbycollaboratingwithlocalmini-gridoperators.
• InnovativeBusiness:Asmanagingruralcustomers,particularlyinremoteareas,isachallengeinnovativebusinessmodelsneedtobeexplored.
» Severalideaslikeprepaidmeteringanddirectbenefittransfer(DBT)arebeingproposedtohandlethemetering,billingandsubsidyissues.
» ConsideringthelimitedfinancialandITliteracyofruralconsumers,aswellasthechallengesininternetreliability,itisbettertotryoutpilotsbeforerollingoutsuchsolutionsonalargescale.
• Maintenanceandoperationssuchasreadingmeters,generatingbills,andcollectingrevenues,arekeyconcerns.
» theruraldistributionnetworksrequireinvestmentstotideovertheoperationandmaintenancechallengesthatleadtofrequentfailuresofDTsandlinefaults,requiringlongrepairtimes.
• Distributedgeneration:Modelslikerooftopsolarpowercouldcomplementcentralisedgridelectricitytoensuresustaineduseofelectricityfortheentireruraleconomy.
• Accountability:
» ThereisaneedtoholdDISCOMsaccountableformonitoringofsupplyqualityandoperationandmaintenanceeffortsinruralareasinordertoensureuninterruptedsupply.
» ThefinancialhealthandoperationalefficiencyofDISCOMsissubjecttotremendousscrutinyunderbailoutschemeslikeUDAY.ThereneedstobesimilaremphasisandpoliticaldiscourseonsupplyandservicequalityissuestoholdDISCOMsaccountableforthesame.
• Tariffchanges:
» Inmanystates,smallindustrialandcommercialconsumerspaytariffratescomparabletolargeindustrialunitsand
www.amritaias.com | [email protected] | +91 85890 60000
153
commercialcomplexes.Thereneedstobeinnovationintariffdesigntoencouragehome-basedorsmallenterprisesinnewlyelectrifiedvillages
» Currently,supplyofoneunitofpowercoststheDISCOMsaboutRs.7andthiscostwillmostlikelyincreaseatarateofmorethan4%perunitinthecomingyears.Assuchcostswillbeunaffordableformanyconsumers,andwiththecontributionofcross-subsidiesreducing,substantialsubsidysupportwillbenecessary.
• Research:
» Evenafterthetargetsofconnectionsaremet,thereisaneedforanationalinstitution,withruralelectrificationasitskeyfocus.ItsmandateneednotbetooperatetheruraldistributionbusinessesbuttoprovideknowledgeandfinancialsupporttoDISCOMsformaintainingandstrengtheningtheruralnetworkandensuringsupply.
• SuccessmainlydependsoncurbingDISCOMlossesandensuringconsumerhonesty.Itishopedthatelectrificationwouldleadtoimprovedconsumersatisfaction,aselectricitytrulybecomesanenablerofprosperityinruralIndia.Concertedeffortstomonitorsupplyhoursforrural,remoteandnewlyelectrifiedhouseholdsareneeded.
Practice questions
1. India’seffortstoachieve100%ruralhouseholdelectrificationareyettoberealised.Analyse(250words)
www.amritaias.com | [email protected] | +91 85890 60000
154
FAKE NEWS AND VOTING BEHAVIOR
Context
• OutgoingChiefElectionCommissionerO.P.Rawathassaidthatfakenewsaffectsvotingbehaviourinabigway.Illiteracyandignoranceofcitizensmakethemeasilyfallpreytofakenews.
27
Incidents
• OnTwitter,researchersdiscoveredevidenceofpoliticalpartiesusingbotstoboosttheirfollowercounts,ortoretweet,like,orsharecontentthatsupportedtheircampaigns.Automatedaccountsallowyoutoreachmoreaudiences,andifyoucangeneratetrends,youcangeneratetruth.
• TherecentTwitterpurgeoffakeaccounts,wherePrimeMinisterNarendraModilost300,000followersandCongresschiefRahulGandhilost17,000,speaksofhowwidespreadbotactivityisamongIndia’spoliticalcandidates.
• Evenduringsomestateelectionsthisyear,WhatsAppreportedlyhousedrampantmisinformationfrommultiplepoliticalactors.Withover200millionactiveusers,WhatsAppisthemostwidely-usedmessagingappinIndia.
Current mechanism
• RightnowtheonlymechanismisSection126andECinstructionsonpaidnews.Thesection126prohibitsdisplayinganyelectionmatterbymeans,interalia,oftelevisionorsimilarapparatus,duringtheperiodof48hoursbeforethehourfixedforconclusionofpollinaconstituency”.
What is fake news?
• Fakenewsisatypeofyellowjournalismthatconsistsof
www.amritaias.com | [email protected] | +91 85890 60000
155
deliberatemisinformationorhoaxesspreadviathetraditionalprint,broadcastingnewsmedia,orviaInternet-basedsocialmedia.Fakenewsiswrittenandpublishedwiththeintenttomisleadinordertogainfinanciallyorpolitically,oftenwithsensationalist,exaggerated,orpatentlyfalseheadlinesthatgrabattention.
The main driving force behind fake news remains
• Gettingeasyviewershipthroughsensationalnewse.g.dubbingforeignprisonersasspiesorterroristswithoutanyproof
• Directedtowardsaparticularorganizationorpersonwithanintentiontoeitherglorifyitortobringmalice.Eg.anewschannelwasestablishedtodefendtheaccusedinJessicaLalmurdercase.
Dangers of fake news
• Political:Swayingorpolarisingpublicopinion.ExampleRecentAmericanelection,UPelectionswherecertainfactsarequotedoutofcontext/partially.Significantimpactonthenatureofpolity.
» Democracyinperilasinformedvotingdecisionisaffectedleadingtowrongleaderscomingtopower.
» Needforlevelplayingfieldforcandidatestopreventanyadverseimpact.
• Religious:Promotingreligiousideologies.GlorifyingonereligionwhiledespisingothersEx.RightwingviolencemetedoutbyGaurakshaksleadstoreligiouspolarisationandcommunalunrests.
• Criminal:Sensationalisingcrimesbyblowingthemoutofproportion.MisleadspeopleratherthanmakingthemawareandInstillsirrationalfears.
• Financial:Fakenewshasalsobeenusedtodupegulliblepeoplefinancially.Thereachofnewshasgivenchitfundschemesanaltogethernewarenaaswellashasintroducedtheconceptofonlinefraudthroughspammails.
www.amritaias.com | [email protected] | +91 85890 60000
156
• Nationalintegration:Ithampersspiritofcommonbrotherhoodandraisesintolerance.E.g.2012massexodusofNorth-EasternpeoplefromBangaloreonfalseonlinethreats.
• Image:Overthetimeitshapesthethinkingofsocietyatlarge.PortrayalofIndiaasanunsafedestinationforwomenbyinternationalmediahascreatedafalseimageofanation.
What is needed?
• Independentpress:Independent,trustedandeffectivepressregulation.Regulationtoensureopinionpollsandexitpollsshowthetruthbasedonrationalcriteriaputinpublicdomain.
• Socialmediautility:Mainstreammediamustusesocialmediatoolsintensivelyinordertodefendthetruth,presentthecorrectinformationandbalanceopinions.
• Curbmediaownership:Weneedanopendebateontheimpactofmediaconcentrationonourdemocracyandwiderculture.Thereshouldbeclearlimitsonmediaownershipsothatpowerfulproprietorswithvestedinterestsarenotallowedtodominatethenewsagenda.
• Definefakenewslegally.Heavypunitivemeasuresforwhosoeverviolatesthesaiddefinition.
• Thereshouldbegrievanceredressalmechanismsandarbitrationspacestoresolveissues.
• Digitalmedialiteracyamongpeopletoincreasescrutinyandfeedbacksofthecontent.
• Technicalsolutionsthatassessthecredibilityofinformationcirculatingonlinearealsoneeded.Eg:FactcheckingorganisationslikeFactlyandWebgoof.
• ProactiveEC:InternetmajorGoogleandsocialmediagiantsTwitterandFacebookhaveassuredtheElectionCommissionthattheywillnotallowtheirplatformstobeusedforanythingwhichaffectsthepurityofpollsduringcampaignperiod.
» Thecompanieshavealsoassuredthepollwatchdogthatpoliticaladvertisementswillbeflagged,including
www.amritaias.com | [email protected] | +91 85890 60000
157
theamountspent,sothatexpenditurecanalsobeaccountedforduringcampaignperiod,theChiefElectionCommissionersaid.
» GooglewillestablishasystemthatwillallowittosharewiththeECdetailsabouttheexpenditureincurredonitsplatforms.
• Civilsociety:Vigilancetoensuremedia–bothtraditionalandsocialmediaarenotpropagatingfakenews.Eg)NGOslikeADR.
• NewguidelinesproposedunderSection79ITAct
» SectionclassifysocialmediaplatformslikeWhatsAppandFacebookasintermediarieswhichactmostlyasfacilitatorswithoutactivelyinvolvedincreating/modifyinginformation
» Newproposedguidelinesseektoincreasetheiraccountability
» MandatorycorporateentityinIndia
» CompliancewithIndianlaws
» MandatorygrievanceofficerinIndiawhowillrespondtocomplaintswithinprescribedtime.
» Companiesshouldtraceoriginoffakemessages
• RajivGaubapanel:Makesocialmediasitesaccountableforblockingfakenews
• Datalocalisation:TocontrolfakenewsassuggestedbyJusticeSrikrishnacommittee
• Newgovernmentagency:formonitoringfakenews
• Othergovernmentguidelines:
» PressCouncilofIndiaandNewsBroadcastersAssociationtobemademoreresponsibleforfakenewsandcomplaintredressalinprintandelectronicmediarespectively
» 15daystimeboundredressal
www.amritaias.com | [email protected] | +91 85890 60000
158
» Accreditationcancelledfor6monthsfor1stviolation
» UserscreatingfakecontenttobepunishedunderIPC
Beyond Fake News Project
• TheBritishBroadcastingCorporation(BBC)hasdevisedanewcampaignthatisaimedatfightingbackagainstdisinformationandfakenews.Itlaysamajorfocusonglobalmedialiteracy,includingworkshopsanddebatesincountrieslikeIndia.
Best practices
• InSingapore,aparliamentarycommitteeformedtodeliberateonfakenewsanditscauses,consequencesandcountermeasureshasrecommendedthecountry’sgovernmenttobringinalegislationthatwouldencouragesocialmediaplatformstodemandgreatertransparencyandaccountabilityintheflowofcontent.
• Germanyhasalsocompelledsocialmediacompaniestoremovecontentthatviolatesprovisionsofitscriminalcode,encouragingerringonthesideofcensorship.
• AproposedFrenchlawgivesjudgesemergencypowerstotakedownfakenewsduringsensitiveperiods.Judgesarerequiredtoorderatakedownwithin48hours—tooshortaspantodeterminewhatis“fake”.SuchalawwasalsointroducedinMalaysiaandisstillnotrepealed.
Practice question
1. ThegreaterinterconnectednessoverICTtechnologiesposeschallengestothetraditionalelectoralprocesses.Discusstheprecautionsrequiredagainstfakenewswhicharetamperingtheelectoralbehaviour.(200words)
www.amritaias.com | [email protected] | +91 85890 60000
159
STRENGTHENING OF RUPEE AGAINST ALL ITS ODDS
Context
• Rupeestrengthenslittlewithsofteroil,fundflows
• Softercrudeoilprices,alongwithforeignfundinflows,helpedtherupeepostover1%gainagainstthedollar,givinghopeforthecurrentaccountdeficittoremainwithinthetolerancelimitandforafurtherreductioninpetrolanddieselprices.
• Thisisnosurprisesinceimportedoilmeetsabout80%ofIndia’stotaldemand.ThevalueoftherupeetankedamidtheuptrendinoilpriceswhichlastedtillearlyOctober.
• FuelpricesacrossmajorIndiancitieshavefallensignificantlyinthelastfewweeks.
28
Indian scenario
• Indiahas0.5%oftheoilandgasresourcesoftheworldand15%oftheworld’spopulation.ThismakesIndiaheavilydependentontheimportofthecrudeoilandnaturalgas.
• Indiaisthefourth-largestLiquefiedNaturalGas(LNG)importerafterJapan,SouthKoreaandChina,andaccountsfor5.8percentofthetotalglobaltrade.
• Indiathethird-largestoilconsumingnationintheworldandIndia’soilconsumptiongrew8.3percentyear-on-yearto212.7milliontonnesin2016,asagainsttheglobalgrowthof1.5percent.
Impact of fall in crude oil prices on economy
• ThefallinglobalcrudeoilpricescomesasabigrelieftotheCentralgovernment,whichhasfacedincreasing
www.amritaias.com | [email protected] | +91 85890 60000
160
macroeconomicandpoliticalpressureduetorisingprices.
• AccordingtoUBS,adropof$10inthepriceofoilcanimproveIndia’scurrentaccountandfiscaldeficitsby0.5%and0.1%ofGDP,respectively.
• TheReserveBankofIndiawillberelievedasitwillhavetoworrylessabouttherupeeandoil-inducedinflation.
• Thispointstoanincreaseininvestorconfidenceintheeconomyasthefundamentalsimprove.
• Butrisingglobaluncertainties,itmaynotbesoeasytomapwhatliesaheadforglobalcrudeoilpricesandtherupee.
• TheDecember6meetingoftheOrganisationofthePetroleumExportingCountrieswillmakecleartheresponseofoilproducerstothesharpfallinprices.
• Shalecompaniesarealsolikelytorespondtofallingpricesbycuttingproduction;theprofitbreak-evenpointforshaleproducers.
Rising oil prices could take a bite out of India’s economy
• ReboundingoilpriceshavepushedupoilimportcostsandwillwidenIndia’scurrencyaccountdeficit.Thiswillinturnweighontherupee,whichisexpectedtodepreciatefurther.
• Thatwideningdeficitwillresultinaweakeningrupee,asmoreimportsmeanIndiahastobuymoreforeigncurrenciestomeetitsneeds.
• IndiacouldovertakeChinaastheworld’slargestoildemandgrowthcenterby2024,accordingtoaWoodMackenziereport.
• CrudeOilDemandisexpectedtogrowby3.5millionbarrelsperdayfrom2017to2035,accountingforathirdofglobaloildemandgrowth.That’sdrivenbyrisingincomelevels,agrowingmiddleclassandincreasingneedformobility.
Will rupee strengthen?
• Asthedollarisstrengtheningandallaccompanying
www.amritaias.com | [email protected] | +91 85890 60000
161
fundamentalsarestrong,itlooksdifficult.
• AstheintegrationofIndianmarketwiththatofglobalmarketincreases,thefluctuationsoftheIndianrupeepersist.
• InadditiontothattheDemonetisationandGSThavealsomadeashorttermimpactofthevaluationofrupee
• FactorslikerevivalofUSeconomy,slowingdownofchinaandTurkishcurrencyturmoilalsomadeadestructiveimpactoverIndianrupee.
Elements linked to a weak rupee
• Persistentcurrentaccountdeficit;
• Episodesofnetcapitaloutflowintermsofspeculativeanddebtcapitaloutflow;and
• Predominanceofdebtcapitalinforexreserves.
• Intheeventofrupeedepreciation,theRBIintervenesintheforexmarketwiththeobjectiveofcontainingvolatility.
• ThisdeclinecouldbeonaccountoftheRBIsellingdollarstointerveneinthemarkettomanagerupeevolatility.
• However,oureffortstofurtherstrengthenFDIandpromoteexportsbydiversification,improvingthequalityofourcommodities,andfocusingmoreondevelopingandemergingmarketeconomieswillbehelpful.
• Thatistheonlylongtermsustainableandviablewaytopreventtherupeefromfalling.
Way forward
GovernmentshouldfocusonmakingstrategicreservestoragefacilitiesnowasGulfCountriesarelookingtowardstappingtheIndianoildemandduetolowimportdemandformAmericaowingtoavailabilityofshalegasatcheaperrate.
• Moreover,OilCorporationofGulfCountrieshasshowninterestinstorage-refininginIndiasinceitcanreducetheirtransportcostsintoSoutheastAsia.
www.amritaias.com | [email protected] | +91 85890 60000
162
• Infuture,Governmentmayreadilyutilisethisstoragefacilityintheinternationalmarketsasitcanreleaseinventoryandbookprofitswhenpricesclimb,andrechargereservoirswhenpricesfallagain.
• Indiashouldlookatusingrenewableenergytomeetmultipleobjectivesbyincreasingproduction:energysecurity,energyefficiency,decarbonization,andsustainability,amongothers.
• Indiashouldcapitaliseonthereliefofferedbythefallinoilpricestoimproveitspreparednessforanyfuturejumpinoilprices.
• IndiahasstartedtolookforcurrencyswapagreementswithJapanandIranetc.tohaveacontroloverthecurrencyvaluefluctuation.
Conclusion
• Oilpriceshaveshotupthisyear,andaresettogoupfurtherwhensanctionsonIrankickin.
• WhilecurrencydealerssaidtheReserveBankofIndiawasnotpresentinthemarket,thestrengtheningoftherupeegaveanopportunitytoboostforeignexchangereserves.
• ThetotalforeignexchangereservesfortheendofNovember9were$393billion,downby$33billionsinceitspeakinAprilthisyear.
Practice question
1. WhatarethedomesticandinternationalreasonsfordevaluationofIndianrupee?Doyouthinkthatthemeasurestakenbythegovernmentiseffectiveenoughtocontainthefurtherdevaluationofrupee?(200words)
What went wrong in prelims 2018?
www.amritaias.com | fb.com/amritaias | [email protected]
TC 16/354 (4), Cotton Hill Road,Vazhuthacaud, Edapazhanji,Trivandrum – 695014
Candidates
IGNORED the BASICS
01Lack of
Right Guidance
04Simply chased the ”CONTENT OVERLOAD”
in the market
02Questions were
CONCEPTUAL and THE
OPTIONS were VERY CLOSE
03
Helps You to KnowWHAT TO Learn
and WHAT NOT TO Learn
02Priority Topics
Discussion Before EACH TEST
(Based on 80:20 Rule)
01
More than 70% of our Questions Test Your
CONCEPTUAL CLARITY
03Meet with MENTOR
to ContinuouslyImprove upon Your
Weaknesses
04
Batch 3 Starts on 05 January
30 TESTS
REGISTER NOW1st Test OPEN For ALL
85890 60000
TO get it right in 2019, JOINAmrita’s Mentor-Guided PRELIMS Test Series
Offline/Online
www.amritaias.com | [email protected] | +91 85890 60000
164
Ph: 85890 60000 | [email protected] | www.amritaias.com | fb.com/amritacsa
Geography Psychology History
Module Batches