Arctic Sea Ice Changes May Alter India's Monsoon Patterns

  • 09 Sep 2024

In News:

A study by researchers from India’s National Centre for Polar and Ocean Research (NCPOR) has found that seasonal variations in Arctic Sea ice are impacting the Indian monsoon.

What is the Indian Summer Monsoon Rainfall?

The Indian Summer Monsoon Rainfall (ISMR), occurring from July to September, is one of the most significant monsoon systems globally. During the summer, the Central Asian and Indian landmasses heat up more quickly than the surrounding oceans. This temperature difference creates a low-pressure zone at the Tropic of Cancer known as the intertropical convergence zone (ITCZ). Trade winds from the southeast are then deflected toward the Indian subcontinent due to the Coriolis effect and the low pressure they encounter after crossing the equator. As these winds pass over the Arabian Sea, they pick up moisture and bring rain to India. The southwest monsoon divides into two branches over the Indian landmass. The Arabian Sea branch delivers rain to the west coast, while the Bay of Bengal branch brings rain to the eastern and northeastern parts of India. These branches converge over Punjab and Himachal Pradesh, with the Arabian Sea branch moving inward and the Bay of Bengal branch following the Himalayas.

Complexity of the Indian Summer Monsoon Rainfall

Recent climate models have revealed that the ISMR is influenced by the surface temperatures of the Indian, Atlantic, and Pacific Oceans. Additionally, the circum-global teleconnection (CGT), a large-scale atmospheric wave at mid-latitudes, also plays a significant role in affecting the monsoon.

Influence of Arctic Sea Ice on the Indian Monsoon

The study indicates that reduced sea ice in the central Arctic results in decreased rainfall in western and peninsular India, but increased rainfall in central and northern India. Conversely, lower sea ice levels in the upper latitudes, especially in the Barents-Kara Sea region, delay the onset of the monsoon and make it more unpredictable.

Other Atmospheric Systems Influencing the Pattern

When sea ice levels in the central Arctic rise, the heat transferred from the ocean to the atmosphere triggers cyclonic circulation at lower latitudes, such as the North Atlantic. This process enhances Rossby waves—fast-moving air currents created by Earth's rotation and temperature differences—which move from west to east. These waves cause high pressure over northwest India and low pressure over the Mediterranean region, strengthening the Asian jet stream over the Caspian Sea and shifting the subtropical easterly jet northward. This shift leads to increased rainfall in western and peninsular India. On the other hand, decreased sea ice in the Barents-Kara Sea generates an anticyclonic circulation (clear skies) over northwest Europe. This disturbance affects the upper atmosphere over subtropical Asia and India, resulting in increased rainfall in northeastern India while leaving central and northwest regions drier.

Role of Climate Change

Climate change accelerates the reduction of Arctic sea ice, which intensifies the variability and unpredictability of the ISMR. Lower Arctic sea ice contributes to more frequent and severe droughts in some areas, while causing excessive rainfall and flooding in others. The study underscores the urgent need for expanded research on climate dynamics and more accurate monsoon forecasts to address these changing patterns.

The role of district agro-met offices in supporting farmers

  • 10 Sep 2024

In News:

  • Last week, PTI reported that the India Meteorological Department (IMD) is planning to revive District Agro-Meteorology Units (DAMUs) under the Gramin Krishi Mausam Sewa (GKMS) scheme.

Background:

  • The IMD established 199 DAMUs in 2018 in collaboration with the Indian Council of Agricultural Research.
  • The aim was to use weather data to prepare and disseminate sub-district level agricultural advisories. In March, DAMUs were shut down following an order issued by the IMD.

Why are agro-met units important?

  • Around 80% of farmers in India are small and marginal. They largely practise rain-fed agriculture in the backdrop of a decades-long farm crisis that is now overlaid with climate change-related weather variability.
  • The DAMUs were located within Krishi Vigyan Kendras (KVKs). Scientists and researchers trained in meteorology and agriculture were recruited as DAMU staff. They used weather data provided by the IMD like rainfall, temperature and wind speeds to prepare agricultural advisories related to sowing and harvesting, usage of fertilizers and pesticides, irrigation etc.
  • These advisories were sent to millions of farmers across the country free-of-cost in local languages twice a week. They were shared via text messages, WhatsApp groups, newspapers and also through in-person communication from DAMU staff and KVK officers.
  • Since these advisories provided weather information in advance, they helped farmers plan activities like irrigation. They also served as early warnings for extreme events like droughts and heavy rainfall. Many studies conducted over the years have stressed the benefits of agro-met advisories.

Why were DAMUs shut down?

  • According to an Article-14 report, the NITI Aayog misrepresented the role of District Agricultural Management Units (DAMUs) and advocated for their privatization. The report claims that NITI Aayog inaccurately stated that agro-met data was automated, thereby diminishing the role of DAMU staff. In reality, DAMU staff were crucial in creating agricultural advisories based on IMD weather data, which were disseminated to farmers in local languages. NITI Aayog also proposed monetizing these services, contrasting with the current free provision of agro-met information to all farmers.
  • A policy brief from the National Institute of Advanced Studies (NIAS), Bangalore, released in August, highlights that localized and accessible advisories from District Agricultural Management Units (DAMUs) have significantly improved farmers' responses to climatic variations in the Kalyana-Karnataka region. This has led to increased yields and incomes. The brief recommends reconsidering the decision to discontinue DAMUs and suggests exploring ways to enhance their effectiveness and presence.

What about private players?

Currently, a few private companies offer weather advisories, but their services are often too costly for small and marginal farmers.  Dr. M. N. Thimmegowda, a professor at the University of Agricultural Sciences noted that annual subscriptions can cost ?10,000 per crop, leading to expenses of ?20,000-40,000 for vegetable and cereal growers, and up to ?60,000-80,000 for specialized advisories. Additionally, there is concern that these companies may provide biased recommendations for fertilizers and pesticides, favoring certain brands.

How can biotechnology be harnessed for economic development?

  • 04 Sep 2024

The Centre unveiled its BioE3 (Biotechnology for Economy, Environment and Employment) policy last week.

On the face of it, the policy appears to be a routine attempt to create incentives and opportunities to energise growth in the biotech sector. But it is, in fact, about transforming existing industrial and manufacturing processes across various sectors to make them more sustainable and environment-friendly, and less wasteful.

The policy seeks to achieve this by harnessing the power of biotechnology, and developing new manufacturing methods that replicate, or mimic, processes found in natural biological systems.

Potential Benefits of Biotechnology:

  • Medical Science:
    • Cures for genetic disorders.
    • Development of targeted therapies and treatments.
  • Agriculture:
    • Creation of new plant varieties with desirable traits.
    • Increased crop yields and resistance to pests and diseases.
  • Environmental Sustainability:
    • Bioplastics: Eco-friendly alternatives to traditional plastics (e.g., polylactic acid from corn starch).
    • Carbon Capture: Micro-organisms capture and convert CO2 into biofuels, reducing the need for CO2 storage.
  • Synthetic Biology:
    • Design of novel organisms for specific functions.
    • Laboratory-grown organs for transplantation, reducing reliance on organ donors.
  • Industrial Processes:
    • Replacement of chemical processes with biological ones, reducing pollution.
    • Production of sustainable materials and fuels.

BioE3 Policy Benefits for India:

  • Economic Impact:
    • Expected $2-4 trillion from biomanufacturing over the next decade.
    • Prepares India for future economic opportunities in biotechnology.
  • Research and Development:
    • Promotes competencies, research, and talent development.
    • Supports technology development and maturation.
  • Biomanufacturing Hubs:
    • Establishes facilities for producing bio-products: chemicals, enzymes, functional foods, and more.
    • Focus areas: bio-based chemicals, smart proteins, precision therapeutics, climate-resilient agriculture, carbon capture, and marine/space research.
  • Future Technologies:
    • Supports development of life support systems for space and innovative marine-based products.
    • Encourages collaboration among multiple government departments for effective implementation.

Council of Europe’s Convention on Artificial Intelligence

  • 06 Sep 2024
  • The United States, the European Union, and the United Kingdom are anticipated to sign the Council of Europe’s new convention on artificial intelligence (AI), marking it as the first “legally binding” international treaty on AI.
  • The treaty, officially named the Council of Europe Framework Convention on Artificial Intelligence and Human Rights, Democracy and the Rule of Law, was opened for signature during a Council of Europe Ministers of Justice conference in Vilnius, Lithuania.

Purpose and Approach:

  • Human Rights Focus:
    • The convention prioritizes human rights in regulating both public and private-sector AI systems.
    • It seeks to address concerns that fragmented regulations by individual countries could impede the development of AI technology.
  • Risk-Based Framework:
    • The treaty adopts a risk-based approach to the design, development, use, and decommissioning of AI systems.
    • It is applicable to AI systems used across public sectors, including entities acting on behalf of the government, and private sectors, covering multiple geographies.

Key Provisions and Obligations:

  • Accountability:
    • Signatories are accountable for harmful and discriminatory outcomes resulting from AI systems.
    • They must ensure AI outputs respect equality and privacy rights and provide legal recourse for victims of AI-related rights violations.
  • Human Rights and Democratic Integrity:
    • AI systems must be consistent with obligations to protect human rights.
    • They must not undermine democratic institutions, including judicial independence and access to justice.
    • Measures must be implemented to safeguard democratic processes, including fair access to public debate and freedom of opinion.
  • Exemptions:
    • Exemptions include national security and research and development activities.
    • Parties are obligated to address risks related to the lifecycle of AI activities by both public and private actors.

International Context:

  • Related Agreements:
    • The treaty complements other AI regulations and agreements, such as the G7 pact on AI (October 2023), Europe’s AI Act, and the Bletchley Declaration signed by 28 countries (November 2023).

Challenges and Concerns:

  • Enforcement Issues:
    • Despite being termed “legally binding,” the treaty lacks specific provisions for punitive sanctions like penalties or fines.
    • Compliance is primarily monitored, which may not be a strong deterrent for enforcement.
  • Initial Approvals:
    • Hanne Juncher, Director of Security, Integrity and Rule of Law at the Council, indicated that 10 participants are expected to be among the first to approve the convention.
    • This early support reflects the significant investment and satisfaction of these participants in the treaty’s outcome.

Conclusion:

  • The Council of Europe’s convention represents a pioneering step towards a globally coordinated approach to AI regulation, emphasizing human rights and democratic principles. However, its effectiveness will depend on the development of robust enforcement mechanisms and broader adoption by key international stakeholders

India Becomes Leading Plastic Polluter

  • 08 Sep 2024

India has emerged as the top global plastic polluter, releasing 9.3 million tonnes (Mt) of plastic annually, accounting for nearly 20% of the world's total plastic emissions.

Top Plastic Polluters:

  1. India: 9.3 Mt
  2. Nigeria: 3.5 Mt
  3. Indonesia: 3.4 Mt
  4. China: Previously first, now fourth, due to improvements in waste management practices such as incineration and controlled landfills.

Understanding Plastic Emissions

Plastic emissions refer to plastic that escapes from managed systems into unmanaged or uncontrolled environments. These emissions can occur throughout the lifecycle of plastic, from production through to disposal.

Intergovernmental Negotiating Committee (INC)

The INC, established by the United Nations Environment Programme (UNEP) in 2022, is working towards creating a global binding treaty on plastic pollution. The committee addresses the entire plastic lifecycle:

  • INC Sessions:
    • INC-1: Punta del Este, Uruguay (November 2022)
    • INC-2: Paris, France (May – June 2023)
    • INC-3: Nairobi, Kenya (December 2023)
    • INC-4: Ottawa, Canada (2024)
    • INC-5: Scheduled for South Korea (November 2024)

Status of Waste Generation in India

  • Underreported Waste Generation: Official figures estimate 0.12 kilograms per person per day, which may be higher in reality.
  • Excluded Data:
    • Waste from rural areas.
    • Waste recycled by the informal sector.
    • Open burning of uncollected waste.

Global Trends in Plastic Pollution

  • Sources of Pollution:
    • Global North: Littering is a major contributor.
    • Global South: Uncollected waste is the primary source of plastic pollution.
  • Top Polluting Countries: 69% of global plastic waste emissions come from 20 countries, mostly low- and middle-income nations.
  • High-Income Countries: Although these countries produce more plastic waste, their advanced waste management systems prevent them from being top polluters.

India's Initiatives to Address Plastic Waste

  • UNDP India’s Plastic Waste Management Program (2018-2024): Focuses on improving plastic waste management practices.
  • Ban on Single-Use Plastics (SUP): Prohibits the manufacture, import, sale, and use of plastic bags thinner than 120 microns.
  • Plastic Waste Management Rules (2022): Introduces Extended Producer Responsibility (EPR) for plastic packaging, with targets for recycling, reusing, and using recycled plastic.
  • Swachh Bharat Mission: Launched in 2014 to improve waste management and eliminate open defecation.
  • India Plastics Pact: Aims to transform the plastic lifecycle.
  • Project REPLAN: Focuses on creating carry bags from a blend of plastic waste and cotton fibers.
  • Un-Plastic Collective: Promotes a circular economy to reduce unnecessary plastic use and environmental impact.
  • GoLitter Partnerships Project: Targets reducing marine plastic litter from fisheries and shipping.

Global Initiatives to Combat Plastic Pollution

  • Closing the Loop: A UN Economic and Social Commission for Asia and the Pacific project to develop policies addressing plastic waste.
  • Global Tourism Plastics Initiative: Aims to reduce plastic pollution from the tourism sector by 2025.
  • EU Single-Use Plastics Directive (2021): Seeks to minimize plastic waste in the environment.

Challenges in the Way to Achieve Green Growth and Solutions

  • 18 May 2024

Why is it in the News?

The recent heatwave has reminded us of the stark risks posed by climate change and highlighted the criticality of the efforts taken by the Conference of Parties (COP).

Context:

  • The recent heatwave highlights the escalating threats of climate change, emphasizing the urgent need for robust climate action.
  • The World Meteorological Organization (WMO) confirmed that 2023 was the warmest year on record, drawing renewed attention to carbon-intensive sectors like power and industry.
  • As the third-largest carbon emitter globally, India faces increased scrutiny over its emissions.
  • To address these challenges, significant efforts are being made to transition towards green energy, bolstered by various government initiatives and policies.

India's Green Growth Landscape: A Shift Towards Sustainable Practices

  • Indian industries, particularly those in high-carbon emitting sectors, are increasingly acknowledging the importance of embracing sustainable practices.
  • Many companies are taking proactive measures to transition towards renewable energy sources.
    • For example, leading firms in refining, chemical production, and fertilizers are exploring the potential of Green Hydrogen to reduce their carbon emissions.
  • These sectors are crucial in India's decarbonization efforts due to their significant contribution to greenhouse gas emissions.
  • Although there are no mandatory regulations for green technology adoption, many entities are voluntarily adopting these technologies.
  • This shift is driven by stakeholder expectations and the recognition of transition risks, such as policy, regulatory, technology, market, reputation, and legal challenges.
  • Among these risks, technological risk is the most pressing concern for entities adopting green technologies.

Challenges in India's Transition to Green Growth:

Shifting from Fossil Fuels to Renewable Energy

  • Fossil fuel-based power is India's primary source of carbon emissions.
  • To meet the government's climate target of increasing non-fossil power to 50% by 2030, several schemes have been launched to boost renewable energy.
  • ICRA projects that India will achieve this goal, with the share of non-fossil fuel-based installed capacity rising from 41% in 2022-23 to 59% by 2029-30.
  • However, this transition requires significant investment, with an estimated Rs 11-12 lakh crore needed for renewable energy power and over Rs 5-6 lakh crore for transmission infrastructure and storage capabilities.

Ensuring Continuous Renewable Energy Supply:

  • Ensuring a steady supply of renewable energy is crucial to reach the targeted level, given its intermittent nature.
  • Hybrid renewable energy projects (wind and solar) complemented by energy storage systems can help achieve this.
  • For sectors like steel and cement, the government must explore more carbon sequestration methods, such as installing carbon capture utilisation and storage (CCUS), which is inevitable for these hard-to-abate sectors.

Challenges in the Cement Sector:

  • Cement manufacturing is resource and energy-intensive, producing an equivalent amount of carbon dioxide per tonne of cement.
  • CCUS can reduce 60-70% of emissions during cement manufacturing, as most emissions are generated during clinker production.
  • Niti Aayog's report estimates that the cement sector needs a CCUS capacity of two million tonnes per annum by 2030, with a capital cost of Rs 1,600-1,800 crore.

Challenges in the Steel Sector:

  • Due to the abundance of virgin iron ore and limited domestic scrap, the domestic steel industry primarily uses coal as a reducing agent, resulting in high emissions.
  • With India's 2070 net-zero target and carbon tax policies in some countries, domestic steelmakers are focusing on reducing their carbon footprint by 25-30% through technological interventions by 2030.

Government Efforts in India's Green Energy Transition and Carbon Reduction:

  • Production Linked Incentive (PLI) Scheme: The PLI scheme offers financial incentives to manufacturers, encouraging them to establish production facilities in India.
    • This strengthens the local solar manufacturing industry, making solar energy more affordable and accessible.
  • Viability Gap Funding (VGF) for Offshore Wind and Battery Storage Projects: VGF schemes make large-scale renewable energy projects more financially viable, attracting private investment.
    • Offshore wind and battery storage projects particularly benefit from this support, addressing the intermittent nature of renewable energy sources.
  • Faster Adoption and Manufacturing of Electric Vehicles (FAME) Scheme: The FAME scheme provides subsidies for electric vehicle (EV) purchases and supports the development of charging infrastructure.
    • This initiative aims to reduce vehicular emissions, decrease oil dependency, and promote sustainable urban mobility.
  • National Green Hydrogen Mission: Green hydrogen, produced using renewable energy, has the potential to significantly reduce emissions in hard-to-abate sectors.
    • The mission supports research, pilot projects, and production facilities, positioning India as a global leader in green hydrogen technology.
  • Amendments to the Energy Conservation Act: The amendments include provisions for energy efficiency standards and energy management systems.
    • These measures aim to reduce energy consumption, lower emissions, and promote sustainable industrial practices.

Recommendations for Overcoming Green Growth Challenges in India:

  • Renewable Purchase Obligations (RPOs): The government should enforce mandatory percentages of electricity consumption from renewable sources.
    • RPOs require power distribution companies and large consumers to purchase a specific proportion of energy from renewables, ensuring consistent demand and promoting sector growth.
  • Implementation of the National Action Plan on Climate Change (NAPCC): Policymakers should devise strategies that promote sustainable development while tackling climate change.
    • The NAPCC encompasses eight missions focusing on solar energy, energy efficiency, sustainable agriculture, and water conservation, enabling cross-sectoral efforts to integrate climate resilience and sustainability into national policies.
  • Tax Incentives and Subsidies: Financial incentives should be provided to support renewable energy and green technologies.
    • Tax benefits such as accelerated depreciation and tax holidays reduce investment burdens.
    • Subsidies for solar power, electric vehicles, and energy storage systems make these technologies more accessible and appealing to consumers and businesses.
  • Increased Viability Gap Funding (VGF): The government should address financial gaps in economically viable projects lacking initial investment.
    • VGF schemes make large-scale renewable energy projects, like offshore wind farms and battery storage systems, more financially viable and reduce investment risks.

Conclusion

India's journey towards embracing green energy and sustainability is characterized by both formidable hurdles and promising prospects. The proactive steps taken by the government and the enthusiastic participation of diverse stakeholders are laying the groundwork for a more environmentally friendly tomorrow. Yet, reaching the ambitious climate goals demands persistent backing, significant financial injections, and a surge in technological advancements. In a world grappling with the intensifying effects of climate change, India's resolute pledge to slash carbon emissions and shift towards renewable energy stands as both an imperative and an inspiration for nations worldwide.

 

Redefining India's Poverty Threshold: Embracing New Perspectives

  • 16 May 2024

Why is it in the News?

It is important to recognize India’s progress in alleviating poverty based on norms established in the 1970s. However, there is a need to update the poverty threshold to reflect contemporary notions of a ‘decent standard of living’.

Context:

  • The recent release of the Household Consumer Expenditure Survey (HCES) data by the National Sample Survey Office (NSSO) has sparked renewed debates on poverty estimation in India.
  • According to estimates derived from the methodologies proposed by the Tendulkar and Rangarajan Committees, poverty levels have reportedly decreased significantly since 2011-12, with figures standing at approximately 6.3% and 10% respectively for the year 2022-23.

Evolution of Consumption-Based Poverty Measurement in India:

  • India's consumption-based poverty measurement has evolved since its inception in the 1960s.
  • The approach was first introduced by the 1962 Working Group and further refined by the 1979 Task Force.

The 1979 Task Force:

  • The task force defined the poverty line as the per-capita consumption expenditure level that could satisfy the average daily calorie requirement of 2,400 kcal in rural areas and 2,100 kcal in urban areas.
    • This included associated non-food expenditures, and the monetary value of this norm became the foundation for subsequent poverty line revisions.

Tendulkar and Rangarajan Committees:

  • These committees revisited the calorie norms and expenditure levels established by the 1979 Task Force.
    • However, they did not adequately address non-food components.
    • The committees argued that if expenditures on specific necessities meet nutritional requirements, they should also cover other essential non-food needs.

Implications of the estimates:

  • The estimates indicate a notable decrease in poverty since 2011-12.
  • However, some commentators advocate for a reassessment of the poverty line in light of changes in survey methodology.
  • They contend that recent alterations in survey methodology in the Household Consumer Expenditure Survey (HCES) make previous methodologies unsuitable for analyzing HCES data.
  • Surjit S. Bhalla, an economist and former member of the Economic Advisory Council, has provided comprehensive counterarguments to such assertions.
  • Nevertheless, none of these discussions have addressed the suitability of current methodologies for monitoring poverty using consumption data.

Historical Background of Poverty Measurement:

  • Early approaches: Consumption-based poverty measurement was initiated with a Working Group established by the Planning Commission in 1962 and further refined by a task force in 1979.
    • This task force meticulously outlined its rationale for establishing a poverty line specific to India.
  • Definition of poverty line: It was delineated as the per-capita consumption expenditure required to fulfil average daily calorie needs (2,400 Kcal in rural areas, 2,100 Kcal in urban areas) along with associated non-food expenses.
    • This average calorie standard was derived from an analysis of the demographic and activity-based composition of the population during that period.
  • The monetary value assigned to this standard became the foundation for subsequent revisions of poverty lines.
    • However, the fundamental methodology underpinning this calculation was not critically reassessed.

Reevaluating Poverty Measurement Norms in India:

  • The Tendulkar and Rangarajan Committees acknowledged the evolving demographic and activity composition in India, leading them to propose adjustments to calorie norms and expenditure levels for poverty measurement.
    • However, these committees did not adequately reconsider the non-food components of the poverty line.
  • At the core of their argument was the assertion that if spending within an expenditure class is sufficient to meet nutritional requirements, it should also be adequate to cover associated non-food needs.
    • This assumption is questionable in the context of modern India, as the country has undergone significant changes since the 1970s when the Task Force on Poverty was established.

Demographic and Educational Indicators in India Since the 1970s:

Several significant demographic and educational shifts have taken place in India since the 1970s:

  • Life Expectancy: Life expectancy at birth has improved from 49.7 years in 1970 to 69.4 years in 2018, reflecting advancements in healthcare and overall quality of life.
  • Ageing Population: The proportion of individuals aged 60 and above has grown from 6.1% in the 1970s to 10.1% by 2021.
    • This shift highlights the need for policies and programs that address the unique needs of an ageing population.
  • Primary Education: The Gross Enrolment Ratio (GER) in primary education has experienced substantial growth, increasing from 62% in 1971 to universal enrolment today.
    • This progress demonstrates a stronger emphasis on ensuring access to basic education for all children.
  • Higher Education: The Gross Enrolment Ratio for higher education has also seen significant growth, rising from below 6% in the 1970s to approximately 28% in recent years.
    • This development signals a greater focus on providing opportunities for advanced education and skill development.

Implications of Demographic and Educational Changes in India:

  • The demographic and educational shifts observed in India since the 1970s have significant implications for out-of-pocket expenditures on health and education, as revealed by National Sample Survey (NSS) data. Key implications include:

Education Expenditures:

  • The increase in primary and higher education enrolment has led to stiffer competition for aspirational jobs.
  • This competition has driven higher spending on private tuition, leading to 'education poverty' among families with young children.
  • Addressing this issue requires a change in the approach to education, as outlined in the National Education Policy (2020).

Health Expenditures:

  • The rise in life expectancy and an ageing population have led to increased health expenditure needs, especially among the elderly.
  • Changes in household composition and a growing elderly population living independently have further highlighted the need for better healthcare provisions.
  • Political parties, like the ruling party with its Ayushman Bharat promise, recognize the importance of addressing these healthcare needs, indicating a potential shift in policy focus.

Elderly Population and Household Composition:

  • The increase in life expectancy and decline in mortality rates have created a more age-diverse population with a larger elderly population.
  • This ageing population necessitates greater attention to healthcare and financial support for the elderly, an issue that may not be adequately captured by current poverty measurement norms.

Redefining Poverty Norms for a Changing India:

  • Current consumption-based poverty measures capture average population attributes but face limitations when accounting for increased population heterogeneity.
  • As the population structure evolves, using averages to describe poverty becomes problematic.
    • For example: Elderly households may meet nutrition expenditure requirements but struggle with healthcare costs.
  • Households with young children might cover food needs yet face challenges in meeting aspirational education expenses, like private tuition.
  • These examples highlight how households could surpass extreme poverty thresholds yet lack resources for a decent living standard.
    • Consequently, updating poverty norms is essential to accurately capture the realities of diverse household needs.
  • To achieve the Sustainable Development Goal of eradicating poverty in all forms, India must redefine its poverty norms, moving away from outdated standards based on 1970s data.
  • By establishing fresh norms for the Amrit Kaal, India can better address the unique challenges faced by its population and make significant strides towards alleviating poverty.

Conclusion

India has made remarkable progress in alleviating poverty based on existing norms. However, to ensure a decent living standard for all citizens, it is crucial to update poverty measures to reflect current demographic and economic changes. By acknowledging the evolving needs of its population, India can continue making significant strides in poverty reduction and work towards a more inclusive and prosperous future.

Evaluating India's Current Competition Law Amid Proposed Digital Framework

  • 15 May 2024

Why is it in the News?

It stated that due to the swift evolution of digital markets, the current competition law framework may not timely address the anti-competitive conduct by large digital enterprises.

Context:

  • The Committee on Digital Competition Law (CDCL), recently released its report recommending a new Digital Competition Law for India alongside the Draft Digital Competition Bill (DCB).
  • The genesis of the report goes back to the 53rd Report of the Parliamentary Standing Committee on Finance (PSC), released in December 2022.
  • The PSC Report acknowledged the unique dynamics of digital markets, noting their strong network effects and concentration.
  • It highlighted that the current competition law framework may not address anti-competitive conduct by large digital enterprises in a timely manner due to the rapid evolution of digital markets.
  • Consequently, the report emphasized the need for a new law to restrict certain leading players from engaging in specific anti-competitive activities that could distort competition.
  • Activities such as self-preferencing, bundling and tying, and deep discounting were highlighted as areas of concern.

Key Proposals of the Draft Digital Competition Bill:

Predictive regulation:

  • The dynamic nature of digital markets, characterized by constant evolution and interconnected offerings, necessitates a shift from traditional ex-post regulation to a forward-looking, preventive, and presumptive ex-ante framework.
  • The draft Bill proposes this proactive approach as the way forward, acknowledging the limitations of regulating market abuse after it has already occurred.
  • India's current Competition Act of 2002 follows an ex-post antitrust framework, which has faced criticism for its delayed response to market abuse.
  • By the time penalties are imposed, market conditions may have already changed, further disadvantaging smaller competitors.
  • To effectively navigate the complexities of the digital realm, it is crucial to implement predictive regulation that identifies potential antitrust issues and establishes clear guidelines to mitigate harm and maintain a level playing field.

Significant entities:

  • In the Bill, certain "core digital services," such as search engines and social media platforms, prompt the Competition Commission of India (CCI) to designate companies as "Systematically Significant Digital Enterprises (SSDEs)."
  • This designation hinges on diverse quantitative and qualitative criteria, encompassing turnover, user base, and market influence.
  • The quantitative thresholds for SSDE designation include:
    • A turnover in India of at least Rs 4,000 crore over the last three financial years or a global turnover of at least $30 billion.
    • A gross merchandise value in India of at least Rs 16,000 crore, or a global market capitalization of at least $75 billion.
    • Additionally, the relevant core digital service should have a minimum of 1 crore end users or 10,000 business users.
  • Entities falling outside these parameters may still be designated as SSDEs if the CCI deems their presence significant in any core digital service.
  • SSDEs are prohibited from practices such as self-preferencing, anti-steering, and restricting third-party applications.
  • Violations of these regulations may result in fines of up to 10% of their global turnover.

Associate Digital Enterprises:

  • Recognizing the potential benefits of data sharing among entities within a major technology conglomerate, the Bill proposes to identify Associate Digital Enterprises (ADEs).
  • Under this provision, if an entity within a group is identified as an associate entity, it would bear similar obligations as SSDEs, contingent upon its involvement with the core digital service provided by the primary company.
    • For instance, consider the relationship between Google Search and Google Maps, where data flow from the former informs the functionalities of the latter.
    • In this scenario, Google Maps could potentially be classified as an ADE.
  • Similarly, the extent of data exchange between Google Search and YouTube could determine the classification of the latter as an ADE, depending on the recommendations provided to users.

Key Challenges with the Digital Competition Bill:

  • Regulatory Approach: While the Digital Competition Bill (DCB) draws inspiration from international frameworks such as the UK's Digital Markets, Competition and Consumers Bill (DMCC) and the EU's Digital Markets Act, it could benefit from considering alternative approaches like Japan's "co-regulation" strategy.
    • Integrating such an approach might foster a better balance between competition and innovation.
  • Timeline: The current May 15, 2024 deadline for submitting comments may not provide sufficient time for a thorough analysis of the complex issues addressed by the DCB and its potential impacts on various stakeholders.
    • A further extension of the consultation period should be considered.
  • Inter-Regulatory Mechanisms: Overlaps between the DCB and existing sector-specific policy instruments need to be addressed.
    • Implementing an inter-regulatory consultation mechanism will ensure clarity and a harmonized approach across regulatory bodies.
  • Capacity Building: Strengthening the capacity of the Competition Commission of India (CCI) and its Digital Markets and Data Unit (DMDU) is crucial, particularly through the integration of technology sector experts.
    • The DCB should outline specific measures to bolster the Commission's capacity and resources in order to effectively navigate the rapidly evolving digital landscape.

Need to Foster Digital Competition:

  • Advocating for a Presumptive Framework: Government officials propose a shift towards a presumptive regulatory framework to address the entrenched pattern of anti-competitive behaviour by major tech companies.
    • Notably, Google faced a substantial fine of Rs 1.337 crore from the CCI for its anti-competitive practices within the Android ecosystem.
  • Concerns Over Tech Monopolies: Officials express apprehension over the dominance of a handful of US-based tech giants, which has stifled innovation over the past decade.
    • High market barriers deter new entrants from challenging the dominance of established players, perpetuating a cycle of market concentration.
  • Challenges for Emerging Players: Once a company secures a significant market share, its product often becomes the default choice for users, making it challenging for competitors to challenge its dominance.
    • Even prominent entities like Spotify have raised concerns about the restrictive policies enforced by industry giants like Apple and Google.
  • Niche Alternatives and Market Dynamics: While niche alternatives such as Signal for messaging and DuckDuckGo for search engines exist, they remain niche preferences rather than mainstream choices.
    • The proliferation of big tech companies has facilitated affordable advertising rates for smaller businesses, but it has also intensified surveillance and data tracking practices, compromising user privacy.

Conclusion

The proposed DCB marks a notable stride towards regulating India’s digital markets. However, certain concerns persist about its content and policymaking mechanism. The timeline for stakeholder consultation is inadequate, necessitating an extension to ensure comprehensive feedback. Additionally, implementing inter-regulatory mechanisms and capacity building for the CCI remains critical to effectively navigating the evolving digital landscape. Therefore, addressing these issues will be pivotal in ensuring a progressive digital competition framework in India.

Need for a Farmer-Friendly Agri-Export Policy

  • 14 May 2024

Why is it in the News?

The current government policy, skewed towards consumers, unfavourably impacts farmers, necessitating a shift to enhance farmers' incomes.

Current State of India‘s Agricultural Exports:

  • The current status of India's agri exports highlights a notable shortfall in achieving government targets.
  • Despite aiming for $60 billion in 2022, actual exports in 2023-24 amounted to $48.9 billion, showing an 8% decrease from the previous year's $53.2 billion.
  • Between 2004-05 and 2013-14, agricultural exports witnessed remarkable growth, expanding nearly fivefold from $8.7 billion to $43.3 billion.
  • However, this growth trajectory slowed significantly in the period from 2014-15 to 2023-24, with an annual growth rate of merely 1.9%.
  • Key exports include rice ($10.4 billion), marine products ($7.3 billion), spices ($4.25 billion), bovine meat ($3.7 billion), and sugar ($2.8 billion).

What is Agricultural Export Policy?

  • The Agricultural Export Policy, commonly known as an agri-export policy, encompasses a range of governmental regulations, strategies, and incentives aimed at facilitating and encouraging the export of agricultural commodities from a specific nation.
  • It encompasses diverse measures such as export subsidies, tariff adjustments, quality benchmarks, market access arrangements, financial support, and promotional efforts to assist agricultural producers and exporters in accessing global markets, enhancing their competitiveness, and broadening their export horizons.
  • The Government of India introduced a comprehensive Agriculture Export Policy in December 2018, with the following objectives:
    • To diversify our export basket, and destinations and boost high-value and value-added agricultural exports, including focus on perishables.
    • To promote novel, indigenous, organic, ethnic, traditional and non-traditional Agri products exports.
    • To provide an institutional mechanism for pursuing market access, tackling barriers and dealing with sanitary and phytosanitary issues.
    • To strive to double India’s share in world agri exports by integrating with global value chains.
    • Enable farmers to get the benefit of export opportunities in overseas markets.

What is the Need for an Agri-Export Policy?

  • Economic Contribution: India's agricultural exports, totalling around USD 53 billion in the fiscal year 2022-2023, constitute a significant portion of overall exports, yet the country's global share in agricultural exports remains low at 2.2% as of 2016.
  • Food Security Enhancement: Despite catering to a substantial portion of the world's population with limited resources, a well-designed export policy can generate additional revenue to invest in bolstering food security and augmenting farmers' incomes.
  • Inflation Control: Agricultural exports have the potential to stabilize domestic prices, benefiting consumers and producers, particularly during periods of abundant harvests.
  • Job Creation: With approximately 45% of the workforce engaged in agriculture, promoting agricultural exports can foster employment opportunities, particularly in rural areas where agriculture is predominant.
  • Balance of Payments Support: Agricultural exports significantly contribute to India's foreign exchange reserves, helping to offset trade deficits and maintain currency stability.
  • Crop Diversity Utilization: India's diverse agricultural production offers substantial export potential, which can be tapped into through a well-structured export policy.
  • Trade Relations Strengthening: Agricultural exports are pivotal in fostering and reinforcing trade ties with countries like the United States, Saudi Arabia, and the United Arab Emirates.
  • Addressing Structural Challenges: The policy framework can effectively tackle obstacles such as low farm productivity, inadequate infrastructure, global price fluctuations, and limited market access.

What are the Challenges in India's Agri-Export Policy?

Several challenges hamper the effectiveness of India's agricultural export policy, requiring strategic interventions to unleash the sector's full potential:

  • Restrictive Export Policies: Favoring domestic consumers over farmers often impedes the achievement of export targets.
    • Restrictions on commodities like Basmati rice, such as the Minimum Export Price (MEP) of USD 1,200, can limit export volumes.
  • Subsidy-Centric Schemes: Increased subsidies during election periods, including food and fertilizer subsidies, strain fiscal discipline.
    • Populist measures like loan waivers and free power for farmers impact the financial health of the agricultural sector.
  • Insufficient R&D Investment: Low investment in agricultural R&D, approximately 0.5% of agricultural GDP, hinders growth prospects.
    • Doubling or tripling R&D investments is essential for India to excel in agricultural production and exports.
  • Quality and Standards: Maintaining consistent quality and meeting international standards is challenging.
    • Variability in quality, compliance issues, and difficulties in meeting Sanitary and Phytosanitary (SPS) Measures due to pests and diseases impede exports.
  • Infrastructure: Inadequate infrastructure for storage, transportation, and processing results in post-harvest losses, reducing export competitiveness.
  • Environmental and Sustainability Concerns: Balancing the growth of agricultural exports with environmental sustainability is crucial.
    • Over-exploitation of resources may have long-term consequences, necessitating careful resource management and sustainable practices.

Government Initiatives Promoting Agri-Export in India:

To unlock the full potential of India's agricultural exports, the government has launched several initiatives to enhance productivity, modernise infrastructure, and promote sustainable practices. Key schemes include:

  • E-NAM (National Agriculture Market): A pan-India electronic trading portal, E-NAM enables farmers to sell directly to buyers, reducing intermediaries and ensuring fair prices.
    • E-NAM has integrated 1,000 wholesale markets and 585 mandis across 18 states and 3 Union Territories.
  • National Horticulture Mission (NHM): Promoting sustainable horticulture practices, including organic farming and precision farming, NHM supports the establishment of over 100 Farmer Producer Organizations (FPOs) for horticultural products.
    • The mission also backs the production of high-value horticultural products for export.
  • Market Access Initiative (MAI): Supporting export promotion activities, such as participation in trade fairs, capacity building, and market research, MAI has facilitated Indian exporters' participation in over 100 international trade fairs annually.
  • Operation Greens: With an allocation of INR 500 crores in the Union Budget 2023-2024, Operation Greens stabilizes the supply and prices of essential agricultural commodities like fruits and vegetables.
    • The scheme reduces price volatility, ensures fair prices for farmers, and fosters sustainable agri-exports.
  • Scheme for Agro-Marine Processing and Development of Agro-Processing Clusters (SAMPADA): With a budgetary allocation of INR 6,000 crores for the period 2020-2021 to 2024-2025, SAMPADA modernizes infrastructure for agro-processing clusters.
    • This reduces post-harvest losses and increases shelf life, improving the overall export potential.
  • APEDA: Promoting the export of scheduled products, APEDA provides guidelines for sustainability and quality.
    • APEDA facilitated exports of agricultural products worth USD 22.17 billion during the financial year 2022-2023.
  • Agri Export Zones (AEZs): AEZs provide infrastructure development and technology adoption for sustainable agri-exports.
    • Established for commodities like mangoes, grapes, and spices, AEZs have contributed to increased export volumes.
  • Promotion of Organic Farming: Initiatives promoting organic farming for environmental sustainability and the export potential of organic products have resulted in increased organic farming area, reaching 3.90 million hectares in 2022-2023, with exports of organic products totalling USD 1.04 billion.

Way Forward for a Stable Agricultural Export Policy in India:

To establish a stable and prosperous agri-export policy in India, several strategic actions and considerations must be taken into account. These include:

  • Prioritizing Farmer Welfare: Ensuring that farmers receive fair prices for their produce is crucial for the success of agricultural exports and the well-being of the farming community.
  • Supporting Domestic Consumers: Implementing targeted income policies to support vulnerable populations and maintain food security for domestic consumers.
  • Enhancing Productivity: Increasing agricultural productivity through investments in R&D, seeds, irrigation, fertilizers, and improved farming practices to bolster global competitiveness.
  • Diversifying Export Basket: Expanding the range of agricultural exports, focusing on value-added products, and targeting a wide array of international markets to minimize reliance on a select few commodities.
  • Quality Assurance: Implementing strict quality standards and certification mechanisms to ensure that exported agricultural products meet international norms.
    • Establishing uniform quality and standardization protocols is vital, particularly for horticultural items.
  • Infrastructure Development: Investing in modern infrastructure, such as cold storage, processing facilities, transportation, and logistics, to reduce post-harvest losses and enhance export competitiveness.
    • Offering financial incentives, subsidies, and credit facilities can encourage investments in agriculture, infrastructure, and processing facilities.
  • Technology Adoption: Promoting the use of advanced agricultural technologies, precision farming, and efficient irrigation techniques to boost productivity.
    • Encouraging the growth of agri-startups and fostering innovative solutions can enhance agricultural production and export efficiency.
  • Environmentally Sustainable Practices: Encouraging sustainable farming practices, including organic farming, to ensure environmental sustainability in agriculture.
  • Learning from Global Best Practices: Gaining insights from successful agricultural export policies and best practices in other countries can inform India's approach.
    • Strengthening diplomatic efforts to negotiate favourable trade agreements and reduce trade barriers will provide better access to international markets.

Conclusion

To ensure India's continued growth in global agricultural trade, a stable export policy is crucial, embodying dynamism, responsiveness, and adaptability. It must prioritize agricultural sustainability, environmental responsibility, and farmer welfare, securing India's position in international trade. Balancing economic growth with farmer well-being and environmental concerns is key to unleashing India's agricultural potential. Forward-looking policies and innovative solutions will strengthen the agri-export sector, fostering a prosperous and sustainable future for all.

Evaluating the Enhancement of State-run Companies Under Modi Government and Realities

  • 13 May 2024

Why is it in the News?

Finance Minister Nirmala Sitharaman on Wednesday said the government's focus on capital expenditure and infrastructure development has directly benefited state-run companies and led to substantial growth in their stock performance.

Context:

  • In a democratic system, robust opposition plays a vital role in upholding accountability and fostering balanced governance.
  • However, the absence of an effective opposition can impede democratic processes, resulting in unfounded criticisms and ineffective checks and balances.
  • Prime Minister Narendra Modi's government has encountered such obstacles, especially concerning its oversight of public sector enterprises (PSEs).
  • Thus, it is imperative to evaluate the performance of PSEs during the Modi administration, juxtaposing it with historical contexts, and elucidating the government's strategic initiatives aimed at their revitalization.

Strategic Divestment Initiatives by the Modi Government:

  • The divestment strategy adopted by the Modi government involves a well-thought-out approach to balance fiscal objectives and national interests.
  • This is exemplified through the decisions made regarding Air India and Bharat Petroleum Corporation Ltd (BPCL).
  • Air India Privatisation: Air India's transition from a loss-making entity reliant on government subsidies to a privately-owned enterprise signifies a strategic move to enhance efficiency and competitiveness in the aviation sector.
    • Privatisation aims to inject agility and market responsiveness into Air India's operations, fostering growth and profitability amidst intense industry competition.
    • Post-privatisation, Air India's ambitious expansion plans underscore its renewed focus on capturing market opportunities and improving financial performance.
  • Retaining Stake in BPCL: Contrary to Air India, the government's decision to maintain ownership of Bharat Petroleum Corporation Ltd (BPCL) reflects strategic considerations linked to energy security and sectoral importance.
    • BPCL's extensive retail network and expertise in areas like ethanol blending align with the government's objectives in sustainable energy transition.
    • By retaining control over BPCL, the government ensures influence over critical sectors while leveraging the company's capabilities to advance national priorities such as sustainability and energy resilience.
  • Strategic Decision-Making: The government's divestment strategy goes beyond immediate financial gains, considering broader strategic implications and long-term national interests.
    • Factors like sectoral significance, market dynamics, and alignment with development goals inform divestment decisions, ensuring they contribute to India's economic growth and strategic objectives.
    • Through a strategic divestment approach, the government aims to strike a balance between fiscal imperatives and broader developmental priorities, driving sustainable and inclusive growth.

An In-depth Review of PSE Performance During the Modi Era:

  • Under Prime Minister Narendra Modi's leadership, Public Sector Enterprises (PSEs) have experienced notable growth and transformations across various sectors. This comprehensive analysis showcases the strides made by PSEs under the current administration:
  • Financial Sector: The Modi government's intervention and reforms revitalized public sector banks (PSBs), inherited with significant non-performing assets (NPAs).
    • PSBs reported their highest-ever profits and lowest-ever NPAs in the fiscal year 2022-23, indicating a substantial improvement in their financial health and investor trust.
  • Oil and Gas Sector: Oil India Ltd, an upstream oil company, achieved its highest-ever crude and natural gas production, contributing to India's energy security.
    • Indian Oil Corporation Limited (IOCL) reported record-high refinery throughput, sales volume, and net profit, highlighting its operational efficiency and market competitiveness.
  • Energy Generation: Bharat Petroleum Corporation Limited (BPCL) achieved its highest-ever profit for the first nine months of any fiscal year, demonstrating resilience and adaptability in a dynamic market.
    • Coal India registered its highest-ever production, underscoring the government's emphasis on maximizing domestic coal output to meet growing demand.
  • Infrastructure Development and Expansion: National Thermal Power Corporation (NTPC) set a new record for the highest-ever electricity generation in a year, strengthening India's power infrastructure.
    • PSEs like Indian Railways and Ports have undertaken ambitious plans to modernize and expand infrastructure capacity, supporting economic growth and development.

Notable Differences Between the Current Government's Strategy and Results and Those of its Predecessors:

  • Comparing the current government's approach to managing Public Sector Enterprises (PSEs) with that of its predecessors reveals significant differences:
  • UPA Era Mismanagement: During the UPA regime, PSEs were frequently subjected to political interference and corruption, resulting in inefficiency and stagnation.
    • Sectors like Indian Railways faced systemic challenges, such as bureaucratic hurdles and lack of accountability, leading to suboptimal performance and reduced contributions to the economy.
  • Corruption and Cronyism During Past Administrations: The UPA era was tainted by major corruption scandals, damaging the credibility of PSEs and eroding public trust in the government's capacity to manage public resources.
    • Political-corporate alliances further undermined the integrity and efficiency of PSEs, compromising their capacity to serve the public interest.
  • Policy Paralysis and Inefficiency: The UPA government's policy paralysis and administrative inefficiencies hindered innovation and growth in the public sector.
    • Delayed projects and bureaucratic obstacles led to missed economic opportunities and job creation constraints.
  • Modi Government's Transformative Reforms: The Modi government has pursued a reform agenda to revitalize and enhance the competitiveness of the public sector through strategic vision, decisive action, and an emphasis on transparency and accountability.
    • Prime Minister Modi's leadership has emphasized accountability and performance, with measures to streamline decision-making processes, reduce red tape, and hold PSEs accountable.
    • Proactive governance and strategic initiatives, including divestment, strategic partnerships, and infrastructure investments, have unlocked new growth opportunities, improved operational efficiency, and positioned PSEs for long-term success in a global market.

Conclusion

  • The governance of Public Sector Enterprises (PSEs) under Prime Minister Modi's leadership marks a transformative era characterized by forward-thinking reforms, efficient management, and a clear vision for national development.
  • In the face of opposition critique, the government's strategic interventions have successfully positioned PSEs as significant contributors to India's growth trajectory, ultimately fostering a brighter and more prosperous future for the nation and its citizens.
  • Through a combination of bold decision-making, transparency, and a commitment to accountability, the Modi government has revitalized the public sector and enhanced its competitiveness.
  • By addressing the challenges inherited from previous administrations, the current leadership has demonstrated its dedication to promoting sustainable growth and development while effectively managing PSEs for the greater good of the country.

Freshwater Quest: The Emergence of the New Gold Rush

  • 11 May 2024

Why is it in the News?

India can take the lead in shaping non-controversial legislative text that addresses the gaps in the laws of the sea, especially in exploratory activities that concern freshwater extraction.

Context:

  • Recent statistics reveal that the vast majority of Earth's water is saline, leaving only a small portion as freshwater. Surprisingly, just 0.3% of this freshwater exists in liquid form on the surface, highlighting the significance of subterranean freshwater reserves, including those beneath the ocean floor.
  • This emphasizes the growing importance of underground freshwater resources amid the escalating scarcity of surface water.

What are Undersea Freshwater Reserves?

  • Undersea freshwater reserves are large volumes of fresh water found beneath the ocean floor.
  • In the 1960s, the U.S. Geological Survey made an unexpected discovery of freshwater reserves beneath the ocean floor while drilling off the coast of New Jersey.
  • This finding has since been followed by international scientific teams uncovering additional sources of underwater freshwater across the globe, notably including a deep river at the bottom of the Black Sea.
  • This particular underwater river is over 100 feet deep, flows at a rate of about four miles per hour, and boasts a volume comparable to some of the world's largest land-based rivers.
  • As freshwater resources on land become increasingly scarce, countries are turning their attention towards exploring and potentially exploiting both surface and subsurface freshwater reserves within their maritime zones.
  • It is anticipated that these efforts may eventually extend beyond national Exclusive Economic Zones into regions governed by the United Nations Law of the Sea Convention, highlighting the significance of this valuable resource and the increasing need for its sustainable management.

Legal and Policy Framework of Ocean Governance:

  • United Nations Convention on the Law of the Sea (UNCLOS): The United Nations Convention on the Law of the Sea (UNCLOS) serves as the primary legal framework governing the management and constitution of the world's oceans.
    • It incorporates most internationally recognized maritime laws while also acknowledging the importance of customary international law in sea governance.
    • UNCLOS designates the "Area" beyond national jurisdiction as the seabed, ocean floor, and subsoil, defining it as the common heritage of mankind.
    • This classification underscores the notion that these regions should be available for the benefit of current and future generations.
  • 1958 Geneva Conventions: The 1958 Geneva Conventions on the Law of the Sea also play a vital role in maritime legal doctrine.
    • These include the Convention on the Territorial Sea and the Contiguous Zone, the Convention on the High Seas, the Convention on Fishing and Conservation of the Living Resources of the High Seas, and the Convention on the Continental Shelf.
    • These Geneva Conventions address many issues similar to those covered by UNCLOS and draw their principles from customary international law, reinforcing the essential foundations of maritime legal norms.
  • Exclusive Economic Zones and the "Area" under UNCLOS: UNCLOS delineates Exclusive Economic Zones (EEZs) extending up to 200 nautical miles from coastal boundaries, granting states exclusive rights to marine resources within this zone.
    • Beyond the EEZ lies the "Area," designated as the common heritage of mankind, managed collectively for sustainable utilization.

Navigating Complexities in UNCLOS and Geneva Conventions:

  • The United Nations Convention on the Law of the Sea (UNCLOS) and the 1958 Geneva Conventions on the Law of the Sea present complex legal interplays due to varying degrees of ratification and overlapping jurisdictions.
    • For instance, UNCLOS supersedes the Geneva Conventions for its signatories but does not apply to non-signatory states.
    • This divergence in international agreements is exemplified by the United States, which is a signatory to the Geneva Conventions but not UNCLOS.
  • The term "resources" under UNCLOS is limited to solid, liquid, or gaseous mineral resources found in the Area.
    • However, it remains unclear whether this definition extends to freshwater. Given the increasing scarcity of freshwater resources, potential conflicts may arise over its exploration and extraction in the "Area," particularly in the absence of specific legislation governing resources beyond national jurisdiction.
  • The complex legal landscape is further exacerbated by the presence of multiple pieces of maritime legislation that fail to address emerging challenges effectively.
    • Additionally, the regulatory authority of the International Seabed Authority (ISA) under UNCLOS adds another layer of complexity, as it remains unclear who regulates state parties to the Geneva Conventions regarding mining and exploratory activities in the "Area.

Significance of Freshwater Exploration for the Future:

  • Addressing Scarcity: Given that merely 0.3% of Earth's freshwater is readily available on the surface, the exploration of underground and underwater sources emerges as imperative to satisfy future water demands.
  • Conflict Prevention: As freshwater scarcity intensifies, the exploration and protection of underwater sources serve as proactive measures to mitigate potential conflicts over water resources.
  • Promoting Sustainability: Engaging in responsible freshwater exploration aligns with Sustainable Development Goals, fostering the sustainable utilization of natural resources to ensure their availability for future generations.

Way Forward:

  • Legislative Clarity: It is crucial to create a thorough legal framework that addresses the difficulties of discovering freshwater reserves outside of national borders.
    • This framework should harmonize UNCLOS provisions with customary international law, ensuring clarity and consistency in governing maritime activities.
  • International Collaboration: Engaging in constructive dialogue and negotiation forums, nations can strive to reconcile divergent legal interpretations and foster mutual understanding.
    • Establishing multilateral agreements and protocols can enhance cooperation and coordination in managing underwater freshwater resources.
  • Research and Technological Advancement: Investment in research and technological innovation is crucial for unlocking the full potential of underwater freshwater reserves.
    • Advanced exploration techniques and sustainable extraction methods can optimize resource utilization while minimizing environmental impact.
  • India's Leadership Role: As a pivotal stakeholder in maritime affairs, India can spearhead international discourse on freshwater exploration.
    • By advocating for inclusive and equitable approaches, India can contribute to the development of global norms and standards governing underwater resource management.

Conclusion

The increasing scarcity of freshwater underscores the urgent need for an internationally recognized legislative framework to govern the exploration and exploitation of underground freshwater resources. The establishment of such a framework would not only help prevent potential conflicts but also ensure the sustainable utilization of this vital resource for the benefit of both present and future generations on a global scale. By proactively addressing these challenges, nations can work together to secure the long-term availability and equitable distribution of freshwater, fostering stability and prosperity in an increasingly water-scarce world.

An AI-infused World Needs Matching Cybersecurity

  • 10 May 2024

Why is it in the News?

As generative AI technology becomes more prevalent, safeguarding consumers' ability to navigate digital environments securely has become increasingly imperative.

Context:

  • In recent times, the integration of generative artificial intelligence (AI) across industries has significantly transformed operational processes.
  • However, this rapid advancement has also led to the emergence of new cyber threats and safety concerns.
  • With incidents such as hackers exploiting generative AI for malicious purposes, including impersonating kidnappers, it is evident that a comprehensive analysis and proactive approach are required to address and mitigate the potential risks associated with this technology.
  • A study by Deep Instinct revealed that 75% of professionals observed a surge in cyberattacks over the past year, with 85% attributing this escalation to generative AI.
  • Among surveyed organizations, 37% identified undetectable phishing attacks as a major challenge, while 33% reported an increase in the volume of cyberattacks.
  • Additionally, 39% of organizations expressed growing concerns over privacy issues stemming from the widespread use of generative AI.

Significant Impact of Generative AI & Growing Cybersecurity Challenges:

  • Transformative Impact: Generative AI has revolutionized various sectors like education, banking, healthcare, and manufacturing, reshaping our approach to operations.
    • However, this integration has also redefined the landscape of cyber risks and safety concerns.
  • Economic Implications: The generative AI industry's projected contribution to the global GDP, estimated between $7 to $10 trillion, underscores its significant economic potential.
    • Yet, the development of generative AI solutions, such as ChatGPT introduced in November 2022, has introduced a cycle of benefits and drawbacks.
  • Rising Phishing and Credential Theft: An alarming surge of 1,265% in phishing incidents/emails and a 967% increase in credential phishing since late 2022 indicates a concerning trend.
    • Cybercriminals exploit generative AI to craft convincing emails, messages, and websites, mimicking trusted sources to deceive unsuspecting individuals into divulging sensitive information or clicking on malicious links.
  • Emergence of Novel Cyber Threats: The proliferation of generative AI has expanded the cyber threat landscape, enabling sophisticated attacks.
    • Malicious actors leverage AI-powered tools to automate various stages of cyber-attacks, accelerating their pace and amplifying their impact.
    • This automation poses challenges for detection and mitigation, making attacks more challenging to thwart.
  • Challenges for Organizations: Organizations across sectors face escalating cyber threats, including ransomware attacks, data breaches, and supply chain compromises.
    • The interconnected nature of digital ecosystems exacerbates the risk, as vulnerabilities in one system can propagate to others, leading to widespread disruption and financial losses.
    • Additionally, cybercriminals' global reach and anonymity pose challenges for law enforcement and regulatory agencies.

The Bletchley Declaration: Addressing AI Challenges

  • Global Significance: The Bletchley Declaration represents a pivotal global initiative aimed at tackling the ethical and security dilemmas associated with artificial intelligence, particularly generative AI.
    • Named after Bletchley Park, renowned for its British code-breaking endeavours during World War II, the declaration embodies a collective resolve among world leaders to shield consumers and society from potential AI-related harms.
  • Acknowledgement of AI Risks: The signing of the Bletchley Declaration at the AI Safety Summit underscores the mounting awareness among global leaders regarding AI's inherent risks, notably in the cybersecurity and privacy realms.
    • By endorsing coordinated efforts, participating nations affirm their dedication to prioritizing AI safety and security on the international agenda.
  • Inclusive Engagement: The Bletchley Declaration's inclusive nature is evident in the involvement of diverse stakeholders, including major world powers like China, the European Union, India, and the United States.
    • By fostering collaboration among governments, international bodies, academia, and industry, the declaration facilitates cross-border and cross-sectoral knowledge exchange, essential for effectively addressing AI challenges and ensuring equitable regulatory frameworks.
  • Consumer Protection Focus: At its heart, the Bletchley Declaration underscores the imperative of safeguarding consumers against AI-related risks.
    • Participating countries commit to formulating policies and regulations that mitigate these risks, emphasizing transparency, accountability, and oversight in AI development and deployment.
    • Additionally, mechanisms for redress in cases of harm or abuse are prioritized.
  • Ethical AI Promotion: A core tenet of the Bletchley Declaration is the promotion of ethical AI practices.
    • Participating nations pledge to uphold principles of fairness, accountability, and transparency in AI development and usage, striving to prevent discriminatory or harmful outcomes.
    • This commitment aligns with broader endeavours to ensure responsible AI deployment for the betterment of society.

Alternative Measures for AI Risk Mitigation:

  • Institutional-Level Strategies: Governments and regulatory bodies can enact robust ethical and legislative frameworks to oversee the development, deployment, and utilization of generative AI technologies.
    • These frameworks should prioritize consumer safeguarding, transparency, and accountability, all while fostering innovation and economic prosperity.
    • Furthermore, the integration of watermarking technology can aid in the identification of AI-generated content, empowering users to discern between authentic and manipulated information.
    • This proactive approach can substantially mitigate the prevalence of misinformation and cyber threats stemming from AI-generated content.
  • Continuous Innovation and Adaptation: Sustained investment in research and development is imperative to proactively address emerging cyber threats and devise innovative solutions to counter them.
    • By bolstering support for cutting-edge research in AI security, cryptography, and cybersecurity, governments, academia, and industry can drive technological progress that fortifies cybersecurity resilience and mitigates the inherent risks associated with generative AI.

Conclusion

Effectively tackling the challenges presented by generative AI demands a comprehensive strategy encompassing regulatory, collaborative, and educational efforts across institutional, corporate, and grassroots domains. Through the enactment of robust regulatory frameworks, stakeholders can collaboratively mitigate the risks posed by AI-driven cyber threats, fostering a safer and more secure digital environment for all.

Constructed Wetlands: Solution for Wastewater Treatment in India

  • 07 May 2024

Why is it in the News?

Constructed wetlands ecosystems can significantly contribute to sustainable industrial progress and the preservation of water resources.

Context:

  • Industrial growth in India has led to major environmental issues, especially in managing industrial wastewater.
  • Untreated or improperly treated industrial discharge into water sources causes severe threats to ecosystems, public health, and water security.
  • With diverse sectors like manufacturing, textiles, chemicals, and mining, pollution is substantial.
  • Traditional treatment methods often fail to address the complex pollutants in industrial wastewater, demanding a shift to comprehensive, nature-based solutions.
  • Constructed wetlands offer a promising solution, providing effective treatment and significant environmental and economic benefits.
  • These unique ecosystems combine the efficiency of natural processes with human innovation, presenting an eco-friendly alternative to conventional treatment methods.

What are Constructed Wetlands?

  • A constructed wetland is a type of sustainable wastewater treatment system that is designed to look and function as a natural wetland does.
  • Constructed wetlands are created for the purpose of treating wastewater from small, rural communities in an environmentally friendly way before allowing it to return to the water system safely.
  • They are usually made up of a primary settlement tank where wastewater from the community is collected and from that, several ponds follow which are planted with wetland plants including reeds, rushes and sedges.
    • The ponds are usually gently sloped towards a river to allow water to flow very slowly through the wetland before flowing away.
    • Any particles that have been carried in the water will settle on the bottom and the plants and natural microorganisms (e.g. bacteria, algae and fungi) in the wetlands will break down and remove certain pollutants and elements e.g. phosphorus in the water.
  • Constructed wetlands are typically divided into two categories: Subsurface flow (SSF) and surface flow (SF).
    • Subsurface flow (SSF) wetlands direct wastewater through gravel beds or porous media, promoting microbial activity that degrades organic matter.
    • In contrast, surface flow (SF) wetlands demonstrate their aesthetic appeal above the water’s surface, with gently flowing streams and lush vegetation.
  • While each design exhibits distinct advantages, both variants share a unified objective: to convert pollutants into benign compounds through natural processes.
  • Plant Selection: Plants like cattails, bulrushes, and sedges are crucial for nutrient absorption and provide habitat for beneficial bacteria.
    • Their roots oxygenate the soil and support microbial processes, aiding in pollutant removal.
  • Microbial Activity: Beneath the water's surface, a complex microbial community breaks down pollutants, converting toxic substances like ammonia into benign compounds like nitrate.
    • This microbial activity occurs naturally, without external intervention.
  • Mutual Benefit: Plants and microbes engage in a symbiotic relationship where plants absorb nutrients and contaminants are trapped, while microbes break down pollutants.
    • This mutually beneficial interaction fosters a thriving ecosystem within constructed wetlands.

Nature’s Filtration System:

  • Constructed wetlands replicate the functionalities of natural wetlands but are purposefully designed to treat wastewater efficiently.
  • They comprise shallow basins adorned with wetland vegetation such as reeds, rushes and sedges.
  • As wastewater traverses through these basins, a series of physical, chemical and biological processes unfold, effectively eliminating contaminants and enhancing water quality.

Constructed wetlands present numerous benefits:

  • Cost-Effectiveness: In contrast to traditional treatment facilities, constructed wetlands frequently offer a more economical option for construction and upkeep.
    • Their construction and maintenance entail minimal energy consumption and lower operational expenses, rendering them especially appropriate for settings with limited resources.
  • Versatility: Constructed wetlands can be customised to address diverse forms of industrial wastewater, effectively managing a broad spectrum of pollutants and contaminants.
    • These wetlands can be configured as either free-water surface or subsurface flow systems, chosen based on the particular needs of the location and the characteristics of the pollutants present.
  • Environmental benefits: In addition to their primary role in wastewater treatment, constructed wetlands offer supplementary environmental advantages.
    • They function as habitats for a wide array of plant and animal species, promoting biodiversity conservation.
    • Moreover, they contribute to ecosystem services such as flood control and carbon sequestration, further enhancing their ecological significance.
  • Scalability and adaptability: Constructed wetlands are flexible in their scalability, and able to be adjusted to fit various industrial operations and spatial limitations.
    • They are versatile, accommodating both centralised and decentralised wastewater treatment methods, thereby providing adaptability in their deployment.

Constructed Wetlands Across India:

  • India boasts several remarkable locations where constructed wetlands are utilised for wastewater treatment.
  • In Delhi's Asola Bhatti Wildlife Sanctuary, a constructed wetland system purifies sewage from adjacent settlements while providing a habitat for diverse flora and fauna, contributing to regional biodiversity conservation.
  • Chennai's Perungudi and Kodungaiyur regions have integrated constructed wetlands into their decentralised wastewater treatment strategy.
    • These wetlands treat local community sewage, reducing pollutant levels and easing pressure on centralised treatment plants.
  • The Kolkata East Wetlands in West Bengal, a Ramsar site, comprises an extensive network of natural and constructed wetlands treating Kolkata's wastewater.
    • These wetlands offer livelihoods for local fishing and agricultural communities while improving water quality.
  • Palla village in Haryana uses constructed wetlands to treat wastewater from Delhi before releasing it into the Yamuna River, improving water quality and mitigating downstream pollution.
  • Auroville, a sustainable international township in Tamil Nadu, employs decentralised wastewater treatment systems featuring constructed wetlands, demonstrating a community-driven approach to wastewater management.
  • The Sariska Tiger Reserve in Rajasthan utilises constructed wetlands for treating village wastewater.
    • This initiative addresses sanitation needs while preserving the reserve's ecological integrity and wildlife habitats.

Opportunities and Challenges in the Indian Context:

Potential for Adoption:

  • In India, the potential for utilising constructed wetlands in industrial wastewater treatment is immense.
  • With its rich biodiversity and abundance of wetland ecosystems, the country presents favourable conditions for their widespread adoption.
  • The decentralised nature of industries makes constructed wetlands an appealing option for on-site or cluster-level wastewater treatment.

Challenges to Overcome:

  • Establishment of clear policies and regulatory frameworks to encourage the adoption of constructed wetlands in industrial wastewater treatment.
  • Provision of incentives and subsidies to incentivize industries to invest in sustainable wastewater management practices.
  • Raising awareness and enhancing technical expertise among stakeholders, including industry professionals, regulators, and local communities.
  • Continuous monitoring and research efforts to evaluate the performance of constructed wetlands in diverse industrial settings, including optimizing design parameters and addressing emerging challenges such as new contaminants and the impacts of climate change.

Community Involvement:

  • Engagement of local communities in the planning, design, and management of constructed wetlands fosters a sense of ownership and ensures the long-term sustainability of these systems.
  • Active participation from community members is essential for the success of constructed wetland projects.

Conclusion

Constructed wetlands present a promising solution for combating industrial wastewater pollution in India. By addressing policy, capacity-building initiatives, and community involvement, constructed wetlands have the potential to significantly contribute to sustainable industrial progress and the preservation of water resources for future generations.

Challenges Faced by MSME Sector in India & Its Solution

  • 06 May 2024

Why is it in the News?

A new provision in the Income-Tax Act from Budget 2023-24 ensures prompt payments to MSMEs however, it's causing a problem: large companies are cancelling orders from registered MSMEs and giving them to unregistered ones.

Context:

  • The Union Budget 2023-24 brought in a fresh provision in the Income-Tax (IT) Act to ensure timely payments to micro, small, and medium enterprises (MSMEs) within 45 days of supplying goods or services.
  • Yet, this measure has led to an unusual issue: big corporations are cancelling orders from registered MSMEs and redirecting them to unregistered ones.

What is the Latest Tax Compliance Guidelines for MSMEs:

  • In India, businesses typically record expenses as they occur (accrual basis), regardless of whether payment has been made.
  • However, under Section 15 of the MSMED Act 2006 and the newly enacted Section 43B(h) of the IT Act, businesses are obligated to settle payments with MSME Registered Enterprises within 15 days or up to 45 days if stipulated in an agreement.
  • Failure to adhere to this regulation results in the inability to deduct these payments as expenses in the same fiscal year, potentially increasing taxable income and business taxes.
  • Moreover, delayed payments to MSME-registered units incur interest liabilities, placing the responsibility on the payer to fulfil outstanding dues.

What is MSME?

  • MSMEs are Micro, Small, and Medium Enterprises that are usually involved in the manufacture and production of goods and commodities.
  • These business enterprises are the backbone of a country’s development and provide holistic development to the rural and urban population of the country.
    • The MSME sector in India makes a contribution of around 30% to the nation’s GDP.
    • Moreover, it contributes about 40% to the total exports of India, and
    • It provides more than 110 million job opportunities in the country.
  • The Government of India introduced the MSME under the Micro, Small, and Medium Enterprises Development (MSMED) Act of 2006.
    • MSMEs are managed under the Ministry of MSMEs.
  • The objective of MSMEs is to primarily engage in manufacturing, processing, production, and preservation of goods and commodities.
  • These business enterprises play an important role in the socio-economic development of the country.
  • Thus, the importance of MSME in the growth and development of India is vital.

MSME Classification:

  • Businesses are classified as micro, small or medium enterprises based on their turnover and the sector they operate in (manufacturing/services).

Types of MSME:

According to the Micro, Small and Medium Enterprises Development (MSMED) Act 2006, MSMEs are of 2 types:

  • Manufacturing Enterprises: Business enterprises that are involved in the manufacturing of goods, as stated under Schedule I of the IDRA 1951, are categorised as MSMEs.
    • Additionally, all business enterprises that contribute value to the finished products by making use of plants and machinery also come under MSMEs.
  • Service Enterprises: Business enterprises that provide services and come under the category of ‘enterprises’ as stated in the MSMED Act are service enterprises and come under MSMEs.
    • However, individual service providers do not qualify as service enterprises.

Importance of MSME in the Indian economy:

  • Export: MSMEs’ contribution to the exports from India was recorded at 45.56% till Sept. 2023.
    • Such high volumes of exports facilitate international trade and contribute to industrial growth within the country.
  • Employment: MSMEs create employment in rural and urban areas of the country.
    • These business enterprises are the second largest employment sector in India after agriculture.
    • By setting up units in rural and underdeveloped areas, MSMEs contribute to the better living standards of people from lower socioeconomic and rural areas as well.
  • Innovation: MSMEs bring innovation to various processes in the manufacturing of goods and commodities.
    • They provide the necessary skills, tools, and technology for automation and advancement in their sectors.
    • It contributes to the overall technological upgradation of the country and promotes research and development.
  • Entrepreneurship: MSMEs promote inclusiveness in the country by facilitating the entry of aspiring entrepreneurs in various sectors.
    • They promote healthy competitiveness among entrepreneurs, which fuels industrial growth.

Challenges faced by the MSME sector in India:

  • Financial: Access to finance is a significant hurdle for MSMEs, with only 16% receiving timely finance.
    • This forces them to rely on their own resources, hindering their growth prospects.
    • Even larger firms struggle to access cheaper credit from formal banks.
  • Regulatory issues: MSMEs face challenges with tax compliance and labour law changes, which have proven costly.
    • Despite attempts to make the sector more competitive, compliance with regulations and tax registration remains difficult, leading to low capital and business closures.
  • Infrastructure: India's infrastructure is crucial for the MSME sector, especially in the outsourcing industry.
    • However, inadequate infrastructure affects their efficiency and ability to compete globally, limiting their growth potential.
  • Low productivity & Lack of innovation: MSMEs may lack high productivity but offer value through cost efficiency and providing goods at lower prices.
    • However, their small-scale production and low margins put them at a disadvantage compared to larger firms.
    • Indian MSMEs often rely on outdated technologies and lack entrepreneurs who embrace new tools and technologies.
    • This hampers their productivity and competitiveness, especially when compared to larger firms in sectors like e-commerce and call centres.
  • Technical changes: MSMEs have faced significant technical changes over time, impacting their growth potential.
    • Changes in land ownership rights have led to mismanagement and reduced productivity, highlighting the need for adaptability.
  • Competition & Skills: MSMEs face fierce competition from larger firms, exacerbated by the rise of e-commerce and globalization.
    • While competition is not new, MSMEs struggle to withstand the pressure in areas such as agriculture, garments, and tourism.
    • MSMEs lag behind in terms of skills compared to their counterparts in other countries.
    • Dependence on informal workers with limited technical skills hampers productivity and forces smaller firms into low-skilled jobs, hindering long-term growth.
  • Lack of professionalism: Many Indian MSMEs lack professionalism, making them vulnerable to corruption and abuse of power.
    • This significantly impacts their business productivity and overall growth.
  • Lack of standardized policies: India lacks consistent MSME policies, resulting in inconsistent development and entrepreneurship promotion programs.
    • While progress has been made in Delhi, nationwide efforts are necessary for Indian firms to compete globally.

Government MSME Schemes and Policies in India:

  • FIRST: Keeping in view the crucial role MSMEs play in the development of the country, the central government announced the launch of FIRST (Forum for Internet Retailers, Sellers, and Traders).
  • The program aligns with the government’s Digital India movement and educates and informs MSMEs about opportunities to become self-reliant and digitally capable.
  • MSME Innovation Scheme: Under this scheme, MSMEs can enjoy reimbursement of the cost of Intellectual Property Rights applications for new ideas and designs.
    • The programme provides financial and other resources to MSMEs to encourage innovation.
  • CGTMSE: The Credit Guarantee Trust Fund for Micro and Small Enterprises scheme provides financial assistance of up to ?2 Crore to new businesses.
  • CLCSS: The Credit Linked Capital Subsidy Scheme provides capital subsidies to MSMEs operating in the khadi, village, and coir sectors.
    • The subsidy allows these businesses to acquire technological innovation and upgradation.
  • ASPIRE: ASPIRE, or A Scheme for Promotion of Innovation, Rural Industries, and Entrepreneurship, fosters innovation and entrepreneurship in rural and agricultural sectors by establishing advanced technology networks.
  • Pradhan Mantri Mudra Yojana (PMMY): The PMMY scheme provides loans up to Rs. 10 lakhs to MSMEs.
    • The scheme has three categories of loans: Shishu (up to Rs. 50,000), Kishore (up to Rs. 5 lakhs), and Tarun (up to Rs. 10 lakhs).
    • The loans do not require collateral and are available to both new and existing MSMEs.
  • Stand-Up India: The Stand-Up India scheme provides loans up to Rs. 1 crore to SC/ST and women entrepreneurs for setting up new ventures in the manufacturing, services, or trading sectors.
    • The scheme aims to promote entrepreneurship among these communities and provides support through the entire loan process.

Way Forward:

  • Creating awareness about government schemes and initiatives: Stakeholders should take active measures to educate MSMEs about the various schemes and initiatives launched by the government to promote SME financing.
    • This will help MSMEs take advantage of these schemes and secure financing for their businesses.
  • Developing innovative financing solutions: Financial institutions should develop innovative financing solutions that cater to the unique needs of MSMEs.
    • These solutions can include alternative credit scoring mechanisms, digital lending platforms, and other innovative solutions that reduce the reliance on collateral and traditional credit histories.
  • Encouraging private-public partnerships: Private-public partnerships can be a powerful tool to promote SME financing.
    • Governments and private sector companies can work together to develop financing solutions that are tailored to the needs of MSMEs.
  • Reducing the cost of credit: High interest rates on loans can be a significant barrier for MSMEs to secure financing.
    • Stakeholders should take measures to reduce the cost of credit for MSMEs, which will make it easier for them to invest in their businesses and drive growth.
  • Leveraging technology: Technology can play a crucial role in improving SME financing.
    • Stakeholders should leverage technology to develop digital lending platforms, credit scoring mechanisms, and other solutions that can reduce the cost and time involved in securing financing.

Conclusion

MSMEs are vital to India's economy, driving exports, employment, innovation, and entrepreneurship. Although they face financial, regulatory, and infrastructure hurdles, fostering a supportive environment through awareness, innovative financing, partnerships, cost reduction, and technology can empower MSMEs to overcome challenges and significantly contribute to India's socio-economic growth.

Get the Sustainable Development Goals Back on Track

  • 04 May 2024

Why is it in the News?

2024 is an election year across the world and newly elected governments need to focus on the all-important sustainability issue.

Context:

  • The United Nations Summit on Sustainable Development Goals (SDGs) held in September in New York presented a chance to assess progress toward the lofty Agenda 2030 goal.
  • The COVID-19 pandemic and other worldwide crises have made progress towards these goals difficult, despite the fact that they are part of a framework that has been widely agreed upon.
  • It is critical to evaluate the state of SDG implementation, investigate critical areas that call for immediate attention, talk about the results of academic studies on the SDGs' political influence, and suggest ways to advance sustainable development.

What is Sustainable Development?

  • Sustainable development entails fostering development that fulfils present needs while safeguarding the capacity of future generations to meet their own needs.
  • Coined by the Brundtland Commission in its 1987 report, "Our Common Future," this definition remains widely embraced.
  • Embracing sustainable development involves collaborative endeavours aimed at constructing an inclusive, sustainable, and resilient future for both humanity and the environment.

What is the Progress and Emerging Challenges in SDG Implementation?

  • Slow Progress and Growing Concerns: The path toward achieving the Sustainable Development Goals (SDGs) has been marred by sluggish progress and mounting concerns, casting doubt on the world's ability to attain the 2030 targets.
    • Despite initial optimism following the adoption of Agenda 2030 by the UN General Assembly in 2015, reports indicate inadequate progress and deviation from the intended trajectory.
    • While there were modest improvements noted between 2015 and 2019, particularly in areas like poverty reduction and access to essential services, they fell significantly short of the necessary benchmarks outlined in the agenda.
  • Challenges Amplified by Global Crises: The onset of the COVID-19 pandemic and other global crises has compounded the hurdles in SDG achievement.
    • The pandemic, in particular, has triggered profound socioeconomic repercussions, disrupting economies, widening inequalities, and propelling millions into poverty.
    • The diversion of resources and attention toward addressing immediate health and economic exigencies has further impeded advancements toward long-term sustainable development objectives.
  • Concerns Over Environmental Sustainability: A notable concern arises from the insufficient emphasis on goals related to environmental sustainability and biodiversity conservation.
    • Critical objectives such as sustainable consumption and production, climate action, and marine and terrestrial biodiversity preservation have been overlooked, jeopardising the welfare of present and future generations.
    • Neglecting these environmental imperatives not only undermines progress toward specific SDGs but also poses existential threats to humanity and the planet.
  • Fragmented Approach to SDG Pursuit: Furthermore, the prevailing approach to SDG pursuit often disregards the interconnected and indivisible nature of the goals.
    • The SDGs are interlinked, with progress in one goal intricately linked to advancements in others.
    • Yet, the disjointed strategies adopted by many nations and stakeholders fail to acknowledge these interconnections, leading to isolated efforts unlikely to yield substantive outcomes.
    • Without a holistic and cohesive approach to sustainable development, achieving the overarching objective of harmonising human well-being with environmental health remains elusive.

International Promises and Real-World Execution:

Renewed Pledges from International Leaders:

  • Amidst these developments, the UN SDG Report 2023 underscored five critical areas necessitating immediate attention:
    • The government's commitment to seven years of accelerated, sustained, and transformative actions to fulfil SDG promises;
    • Concrete, comprehensive, and targeted governmental policies to eradicate poverty, mitigate inequality, and combat environmental degradation, prioritising the empowerment of women, girls, and marginalised communities;
    • Enhancement of national and subnational capacities, institutional accountability, and governance mechanisms to expedite progress;
  • Reaffirmation of the international community's commitment to provide assistance and mobilise resources for developing nations, alongside fortifying the UN development system.
  • Acknowledging the gravity of the situation, world leaders reiterated their commitments and pledged intensified efforts to achieve the SDGs, envisioned as the global pathway out of crises by 2030.
  • However, the extent to which these global declarations translate into action at the grassroots level remains uncertain.

Challenges in National Implementation:

  • Despite governments' global vows, significant disparities often exist between rhetoric and practical implementation on the national stage.
  • Political considerations, competing agendas, and resource limitations can impede the effective execution of SDG-related policies.
  • Furthermore, inadequate coordination and coherence among various government departments and administrative tiers may lead to fragmented initiatives, diminishing the overall efficacy of SDG implementation efforts.

Academic Perspectives and Suggestions:

  • Limited Political Influence: The research highlights that while the SDGs have sparked discussions and prompted some normative and institutional adjustments, their direct political impact at national and local levels remains constrained.
    • Despite international endorsement, the SDGs have yet to yield significant political outcomes in many nations, underscoring the necessity for a nuanced understanding of the factors shaping SDG implementation and the pathways for driving political transformation.
  • Systemic Strategies for SDG Achievement: The study underscores the significance of embracing a systemic approach to unlock the transformative potential of the SDGs.
    • This entails identifying and managing trade-offs while maximising synergies across diverse goals.
    • By addressing interconnected challenges comprehensively, policymakers can capitalise on synergistic effects and enhance the efficacy of their interventions.
      • For instance, initiatives promoting renewable energy can simultaneously advance climate action (SDG 13), foster economic growth (SDG 8), and improve access to clean water and sanitation (SDG 6).
  • Customised Implementation Approaches: Moreover, the study stresses the importance of tailored strategies for SDG implementation tailored to regional and national contexts.
    • Cookie-cutter solutions are unlikely to succeed given the varied socio-economic, political, and environmental landscapes in which the SDGs are being pursued.
    • Instead, policymakers should identify context-specific entry points and leverage existing resources and capacities to drive progress.
    • This may involve targeting specific sectors or geographic areas requiring interventions and engaging marginalized communities to ensure their voices and needs are addressed.
  • Pragmatic Steps to Enhance Implementation: Additionally, the study provides pragmatic recommendations for bolstering SDG implementation.
    • These encompass strengthening governance frameworks and accountability mechanisms, mobilising financial resources, fostering innovation and technology dissemination, and nurturing partnerships among governments, civil society, the private sector, and other stakeholders.
    • By adopting a multi-faceted approach addressing political, economic, social, and environmental dimensions, policymakers can foster an enabling environment for transformative change.

Conclusion

The evaluation of SDG advancement highlights the imperative for swift and collaborative measures to overcome prevailing hurdles and hasten advancement. As 2024 heralds elections in numerous nations, incoming administrations have a chance to elevate sustainability as a focal point and harmonise domestic policies with the SDGs. By infusing sustainability tenets into governance structures and policy formulations, governments can play a pivotal role in expediting SDG attainment.

Analysing Labour on a Warming Planet

  • 02 May 2024

Why is it in the News?

The latest report from the International Labour Organization (ILO), titled 'Safeguarding Workers in a Changing Climate', underscores the pressing necessity to ensure the resilience of labour in the face of climate change.

Context:

  • The International Labour Organisation (ILO) recently released a report titled "Ensuring Safety and Health at Work in a Changing Climate," highlighting the urgency of climate-proofing labour practices to protect workers' well-being.
  • As the planet experiences warming, workplace environments evolve, and the ILO emphasizes the need to update occupational safety and health (OSH) regulations to address emerging risks.
  • According to the report, over one-third of the global population is exposed to extreme heat each year, resulting in nearly 23 million work-related injuries.
    • The ILO urges an overhaul of existing OSH laws and protections, as they have not kept pace with climate change-related hazards, leading to increased worker mortality and morbidity.

What Are the Emerging Climate-Related Risks?

  • The International Labour Organization (ILO) has identified six primary impacts of climate change:
    • Excessive heat
    • Ultraviolet (UV) radiation
    • Extreme weather events
    • Workplace air pollution
    • Vector-borne diseases
    • Agrochemicals
  • These hazards can result in various health issues such as stress, stroke, and exhaustion. Particularly vulnerable to these risks are workers in sectors like agriculture, construction, urban conservation, transportation, and tourism.
  • Of significant concern is the rising prevalence of gig employment globally, which is particularly susceptible to heat-related conditions.
    • In India, gig workers, including ride-hailing app drivers, food and grocery delivery personnel, home repair technicians (electricians, plumbers, AC mechanics), and courier service employees, constitute approximately 1.5% of the total workforce, a figure projected to reach 4.5% by 2030 according to a Nasscom study.
  • In the Indian context, the collective impact of these segments suggests that approximately 80% of the country's workforce, projected to be 600 million by 2023, is vulnerable to heat-related hazards.
  • This staggering figure exceeds the entire current population of South America by 180 million.

Which Sectors Bear the Brunt of Climate Impact?

Agriculture Sector:

  • Globally, agriculture stands out as the most heat-vulnerable sector, particularly in developing nations where informal farm labourers toil without adequate weather protection.
  • In India, where agriculture and allied activities employed about 45.76% of the workforce in 2022-23 according to Union Agriculture Minister Arjun Munda, there's a concerning trend of decline from levels three decades ago.
  • NSSO data from July 2018 to June 2019 reveals that nearly 90% of Indian farmers own less than two hectares of land, with incomes hovering around ?10,000 monthly on average.
  • The situation is even direr in states like Jharkhand, Odisha, and West Bengal, where farmers' earnings can be as low as ?4,895, ?5,112, and ?6,762 respectively.
  • Additionally, half of India's farmers are burdened with debt and lack access to modern agricultural technology, impeding their ability to adapt to a warming climate.
  • Many communities have already adjusted work schedules to avoid peak heat hours, while the ILO recommends increased hydration facilities, breaks, and shaded rest areas in plantations.

Micro, Small and Medium Enterprises (MSME) Sector:

  • Following agriculture, India's MSME sector employs over 123 million workers, accounting for about 21% of the workforce.
  • Despite its significant contribution to exports and manufacturing output, the sector's pervasive informality has led to minimal oversight of worker conditions by state Occupational Safety and Health (OSH) departments, rendering workers highly susceptible to heat-related risks.

Building & Construction Sector:

  • The building and construction industry, with around 70 million workers constituting almost 12% of India's workforce, faces unique challenges exacerbated by urbanization.
  • Workers in this sector contend with the urban heat island effect, heightened by rapid urban growth.
  • Moreover, they are disproportionately exposed to physical injuries and air pollution-related health hazards, such as asthma, given the alarming pollution levels in many Indian cities.

Legislation Safeguarding Worker Rights in India:

  • Central Laws: Integral to ensuring workplace safety in India are the Factories Act, the Workmen Compensation Act, and the Building and Other Construction Workers Act.
    • These laws encompass various facets of labour rights and welfare, addressing conditions within factories and providing compensation for work-related injuries.
  • Occupational Safety, Health, and Working Conditions Code, 2020 (OSH Code, 2020): Introduced in 2020, the OSH Code represents a comprehensive effort to consolidate and revise existing legislation pertaining to workplace safety.
    • Its primary objective is to streamline and strengthen the legal framework governing occupational safety and health nationwide.
    • By amalgamating disparate regulations into a unified code, it aims to establish a more cohesive and effective system for ensuring workplace safety across diverse sectors and industries.

State Laws in Tamil Nadu and Maharashtra:

  • Tamil Nadu: Tamil Nadu formulated its regulations under the Factories Act as early as 1950.
    • These regulations stipulate a maximum wet bulb temperature of 30°C on shop floors and outline requirements for adequate air circulation.
    • However, they lack specific provisions for thermal comfort tailored to varying activity levels or modern cooling solutions, indicating a need for updated standards.
  • Maharashtra: Similarly, Maharashtra devised its rules under the Factories Act in 1963. Like Tamil Nadu, these regulations address maximum wet bulb temperatures and air circulation standards.
    • Nevertheless, they also lack detailed provisions for contemporary cooling methods or adjustments for thermal comfort aligned with evolving production processes, underscoring the necessity for modernization.

Challenges in Addressing Heat Hazards:

  • Regulatory Ambiguity: Existing regulations lack specificity regarding thermal comfort standards and the integration of air conditioning in workplaces.
    • There's a pressing need to update regulations to accommodate modern cooling technologies and ensure the well-being and safety of workers.
  • Impact of the Gig Economy: The burgeoning gig economy in India exacerbates workers' vulnerability to heat-related risks.
    • Many gig workers, comprising a substantial portion of the workforce, often operate without adequate protections or support systems to mitigate extreme heat conditions.
  • Pressures on Labor Unions: Labour unions face mounting pressures from management and bureaucratic entities, often prioritizing industry interests over worker welfare.
    • This dynamic can result in the neglect of worker safety concerns pertaining to heat hazards and other climate-related risks.
  • Effluent and Byproduct Management: The disposal of effluents and byproducts poses significant health risks, particularly with fluctuating temperatures, necessitating robust management strategies to safeguard worker health.
  • Silicosis in Mining and Quarries: The escalating prevalence of silicosis, stemming from silica exposure in mines and quarries, presents a profound occupational health challenge that demands urgent attention and intervention.
  • Shortcomings in Labor Inspection Departments: Vacancies and a lack of expertise within labour inspection departments undermine effective oversight of workplace safety measures, hindering the enforcement of regulations and exacerbating risks for workers.

Way Forward:

  • Modernize Regulatory Frameworks: Revamp existing regulations to include clear guidelines on thermal comfort and air conditioning standards in workplaces.
    • Integrate innovative cooling technologies to ensure the safety and well-being of workers.
  • Empower Labor Unions: Strengthen labour unions and equip them with the resources needed to advocate for worker welfare and safety.
    • Foster collaboration among unions, management, and governmental bodies to effectively tackle heat hazards.
  • Enhance Labor Inspection Mechanisms: Boost staffing and training within labour inspection departments to enhance oversight of workplace safety.
    • Conduct regular inspections and rigorously enforce safety regulations to shield workers from climate-related risks.
  • Invest in Research and Development: Allocate funding for research initiatives focused on developing climate adaptation strategies tailored to various industries.
    • Support studies assessing the efficacy of interventions and technologies in mitigating heat hazards and other climate-related risks.
  • Raise Awareness and Education: Launch awareness campaigns to educate workers, employers, and the public about the health implications of climate change.
    • Provide training programs on heat stress management and preventive measures to bolster resilience in vulnerable sectors.

Conclusion

Amidst the challenges posed by climate change, safeguarding workplace safety and health emerges as a critical imperative. The ILO report highlights a pressing call for a globally accepted regulatory framework to fortify workplaces against climate-related risks and safeguard workers. Achieving this necessitates concerted action from governments, industries, and workers alike to address evolving hazards and uphold the well-being of workers amidst the changing climate landscape.

Supreme Court Affirms Women's Right To Child Care Leave

  • 26 Apr 2024

Why is it in the News?

On Monday, a Supreme Court bench headed by Chief Justice of India D Y Chandrachud said, “Participation of women in the workforce is a matter not just of privilege but a constitutional entitlement protected by Article 15 of the Constitution.

Context:

  • Recent data indicates that while 45% of India's graduates are women, only approximately 10% of educated women pursue long-term careers.
  • However, amidst these challenges, there are instances of women advocating for their rights.
    • For instance, a young mother from Himachal Pradesh recently petitioned the Supreme Court for the right to care for her child, who required her presence.
  • Chief Justice of India DY Chandrachud emphasized that women's participation in the workforce is a constitutional entitlement, and denying mothers childcare leave violates this principle.
  • The petitioner, an assistant professor at a government college, highlighted that the Himachal Pradesh government had refused her childcare leave, despite her child's medical needs.
  • The Supreme Court's intervention underscored that the state, as an employer, must address such concerns and uphold the rights of working mothers.

Protection Under the Constitution and Employer Responsibilities Concerning Women's Employment:

Constitutional Safeguards:

  • Article 15 of the Indian Constitution stands as a pillar of gender equality, prohibiting discrimination based on sex and allowing for affirmative action to address historical disparities.
  • The recent Supreme Court recognition of Article 15 underscores the constitutional imperative to foster a fair and inclusive society, particularly in matters of women's workforce participation.
  • By affirming women's right to work without prejudice, the court reinforces the foundational principles of equality and non-discrimination enshrined in the Constitution.

Employer Responsibility:

  • Employers, especially the government as role models, carry a significant duty to cultivate a supportive environment for female employees.
  • Beyond mere legal compliance, employers must actively address the unique challenges women face in juggling work and caregiving responsibilities.
  • The denial of childcare leave, as highlighted in the recent Supreme Court case, signifies a failure to acknowledge and respect women's rights in the workplace.
  • The court's stance emphasizes that employers cannot overlook the specific needs of women employees and underscores the importance of proactive measures such as offering childcare assistance, flexible work arrangements, and gender-sensitive policies.
  • By fulfilling these obligations, employers not only advance gender equality but also foster a more productive, inclusive, and supportive work culture.

Obstacles to Women's Participation in the Workforce:

Unbalanced Domestic Responsibilities:

  • Women in India shoulder a disproportionate share of unpaid domestic and caregiving duties, including household chores and looking after family members.
  • This unequal distribution of responsibilities consumes considerable time and effort, often hindering women's capacity to engage in paid employment outside their homes.

"Marriage" and "Motherhood" Setbacks:

  • Women commonly encounter setbacks in their careers due to societal norms regarding marriage and motherhood.
  • Marriage can lead to disruptions like relocation or increased household duties, affecting women's career trajectories and earning potential.
  • Likewise, motherhood often results in temporary career breaks or reduced work hours to manage childcare, limiting opportunities for professional growth and financial independence.

Inadequate Support Infrastructure:

  • The scarcity of affordable childcare options, along with insufficient support services like paid parental leave and flexible work arrangements, adds to the challenges faced by women in balancing work and family commitments.
  • The absence of adequate support infrastructure may compel women to prioritize caregiving over employment, particularly when alternative care arrangements are lacking.

Legal Framework for Women’s Participation in the Workforce:

Legislative Advances:

  • India has taken significant strides in enacting laws to uphold women's rights and foster gender equality in workplaces.
  • These laws encompass provisions for maternity benefits, childcare services, and safeguards against gender discrimination in employment practices.
  • Recent legislative changes have broadened maternity leave entitlements and mandated childcare facilities at workplaces, underscoring a commitment to bolstering women's engagement in the workforce.

Gender-Neutral Measures:

  • Initiatives to render legal provisions gender-neutral represent a positive stride toward acknowledging caregiving duties as a shared responsibility among parents.
  • By extending childcare benefits to all employees, regardless of gender, these reforms aim to challenge traditional gender norms and encourage greater equity in caregiving responsibilities within families.

Challenges in Implementing Legal Frameworks for Women's Workforce Participation:

Underfunded Welfare Schemes:

  • Government-led initiatives, such as the National Crèches Scheme, face underfunding and inadequate infrastructure, limiting their ability to provide essential childcare services to marginalized communities.
    • Without sufficient financial resources and institutional support, these schemes struggle to meet the demand for affordable and quality childcare services, particularly in underserved regions.

Lack of Enforcement and Monitoring:

  • Effective enforcement mechanisms and regular monitoring of compliance are crucial for ensuring that employers adhere to legal requirements related to women's workforce participation.
    • However, enforcement agencies often face challenges like limited resources, bureaucratic inefficiencies, and a lack of coordination between government departments, hindering their ability to enforce labour laws and address violations promptly.

Coverage Limitations:

  • Existing laws often have a limited scope, with certain provisions only applying to formal sector establishments or workplaces with a minimum number of employees.
    • This approach excludes many women working in the informal sector or smaller enterprises, leaving them without access to crucial maternity benefits and childcare support.

Way Forward

Collective Responsibility:

  • State: The government plays a key role in setting legal and policy frameworks that promote gender equality.
    • This includes enacting supportive laws, providing incentives for employers to adopt family-friendly policies, and investing in social infrastructure such as childcare facilities and education programs.
  • Employers: Companies can significantly impact women's workforce participation through their practices and policies.
    • Employers should adopt inclusive hiring practices, provide equal opportunities for career advancement, offer flexible work arrangements, and implement family-friendly policies like paid parental leave and on-site childcare facilities.
  • Communities: Communities play a crucial role in challenging traditional gender norms and stereotypes.
    • Community-based organizations, educational institutions, and grassroots initiatives can raise awareness, provide support for working mothers, and advocate for policy changes that promote gender equality.

Policy Integration:

  • Integrating gender considerations into broader policy frameworks is essential for mainstreaming gender equality across all sectors of society.
  • Key strategies include implementing gender-responsive budgeting, conducting gender impact assessments of policies and programs, and ensuring women's voices are heard in decision-making processes.
  • By addressing these aspects, we can create a more inclusive society where women can fully participate in the workforce and achieve their potential.

Conclusion

In conclusion, achieving full participation of women in the workforce requires a comprehensive and collaborative approach involving the state, employers, and communities. By enacting supportive policies, promoting inclusive practices, challenging traditional gender norms, and integrating gender considerations into broader policy frameworks, we can create an enabling environment for women to thrive in their careers. It is through these concerted efforts that we can build a more equitable society and harness the immense potential that women bring to the workforce.

Restoring Earth’s Right to ‘Good Health’

  • 23 Apr 2024

Why is it in the News?

The European Court of Human Rights found Switzerland guilty of violating the rights of women from KlimaSeniorinnen, stating that the government's emission control efforts were insufficient, failing to protect women from climate change impacts.

Context:

  • Courts worldwide are increasingly tasked with addressing the nexus between climate change and human rights, as evidenced by significant rulings such as those from the European Court of Human Rights in Switzerland and the Supreme Court of India.
  • These landmark decisions highlight the imperative of acknowledging climate change as a human rights issue and establishing crucial benchmarks for legal and policy responses to mitigate its detrimental effects on people and societies.

Legal Acknowledgment of Climate Change's Human Rights Impacts:

  • Recent rulings by the European Court of Human Rights against the Government of Switzerland and the Supreme Court of India have underscored the failure to safeguard vulnerable populations from the effects of climate change.
  • The European Court's decision highlighted the government's neglect in protecting elderly women from climate-related harm, while the Indian Supreme Court affirmed citizens' entitlement to freedom from adverse climate effects under constitutional guarantees.
  • Citing Articles 14 (equality before the law) and 21 (right to life and personal liberty) of the Indian Constitution, the Supreme Court emphasized individuals' right 'to be free from the adverse impacts of climate change.'
  • These legal judgments signify a significant step towards acknowledging climate change as a pivotal human rights concern.

The Escalating Human Rights Risks of the Global Climate Crisis:

  • The global climate crisis presents an imminent threat to human rights, imperiling individuals and communities worldwide.
  • The latest State of the Global Climate Report from the World Meteorological Organization presents compelling evidence of the intensifying impacts of climate change.
  • In 2023, numerous climate indicators soared to unprecedented levels, marking it as the hottest year on record.
  • This unparalleled warmth coincided with concerning trends such as heightened ocean heat accumulation, rising sea levels, diminishing Antarctic sea ice, and accelerated glacier retreat.
  • These indicators underscore the severe strain on our planet, with profound implications for human welfare.

India's Climate Action and Vulnerability:

  • Progress Amid Persistent Vulnerability: Despite notable advancements in climate action, India, among the world's fastest-growing economies, continues to confront significant vulnerability to climate change.
    • Having met two of its Nationally Determined Contribution (NDC) targets—reducing emissions intensity by 33% to 35% and achieving 40% cumulative non-fossil fuel electricity capacity—well ahead of schedule, India demonstrates proactive measures.
    • Nevertheless, the nation remains highly susceptible to climate-related adversities.
  • Population Concentration in Disaster-Prone Areas: A primary concern is India's demographic distribution, with over 80% of its populace residing in regions prone to climate-induced calamities like floods, cyclones, droughts, and heatwaves.
    • These events not only disrupt lives but also exacerbate existing socio-economic disparities, disproportionately impacting vulnerable groups such as small-scale farmers, rural communities, and marginalized populations.
  • Intersecting Challenges of Climate Change: Climate change intersects with broader socio-economic and environmental issues, compounding their repercussions.
    • Rapid urbanization and haphazard development intensify urban vulnerability to climate-driven disasters like flooding and landslides.

Frameworks to Strengthen India's Climate Action:

  • Embracing Comprehensive Legislation: India's climate governance could benefit from the adoption of a comprehensive regulatory framework dedicated to climate change.
    • This legislation would offer a unified structure for addressing diverse climate-related aspects, spanning mitigation, adaptation, finance, and capacity-building.
    • By enshrining climate objectives, targets, and strategies in law, such a framework can furnish legal clarity and consistency, guiding sustained planning and investment.
  • Insights from Global Climate Laws: Research from the London School of Economics and Political Science examined climate framework laws in 60 nations, spotlighting their pivotal role in shaping national climate agendas.
    • Countries like Germany, Ireland, New Zealand, Finland, South Korea, South Africa, and the Philippines have instituted robust climate legislation surpassing mere compliance with international obligations.
    • These laws have facilitated public resource mobilization, bolstered climate action capabilities, and fostered inter-sectoral cooperation.

Additional Measures for Enhanced Climate Governance in India:

  • Integrated Climate Policies: India's climate strategies should embrace an integrated approach, embedding climate considerations into broader development frameworks and decision-making processes.
    • This entails weaving climate adaptation and mitigation efforts throughout key sectors like agriculture, water management, energy, transportation, and urban development to foster a cohesive response to climate challenges.
  • Localized Solutions and Cross-Sector Collaboration: Tailored, localized climate actions, coupled with collaborative efforts across sectors, are vital for addressing the diverse and context-specific impacts of climate change.
    • Governments can craft targeted strategies to bolster resilience, mitigate risks, and advance sustainable development goals by engaging local stakeholders and fostering partnerships across sectors.
  • Harmonizing Climate and Sustainable Development Goals: Localized climate initiatives often align with broader Sustainable Development Goals (SDGs), such as poverty eradication, food security, access to clean water, and gender equity.
    • Integrating climate considerations into local SDG agendas enables governments to leverage synergies, optimize resource use, and fortify community resilience and sustainability.
  • Empowerment of Civil Society: Civil society organizations (CSOs) play a pivotal role in advocating for climate action, environmental equity, and governmental accountability.
    • Empowering CSOs and fostering rights-based discourse on climate change are vital for fostering inclusive decision-making, transparency, and environmental justice.
  • Fostering Inclusivity and Representation: Promoting diversity and inclusivity within civil society is imperative to ensure the voices and perspectives of marginalized communities are heard and heeded in climate policymaking.
    • CSOs should aim to represent the interests of various stakeholders, including women, indigenous populations, youth, persons with disabilities, and other marginalized groups, in climate governance.
  • Advancing Rights-Centric Discourse: A rights-based approach to climate action acknowledges that climate change disproportionately impacts vulnerable communities, infringing upon their basic human rights to life, health, food, water, and livelihoods.
    • By framing climate change as a human rights issue, CSOs can advocate for policies that prioritize the needs of affected communities and champion environmental justice.

Conclusion

The alignment of legal rulings, scientific findings, and policy mandates emphasizes the pressing imperative to confront climate change as a human rights emergency.

By acknowledging the inseparable link between environmental health and human welfare, nations can pave the way toward climate resilience and equity.

Empowering communities, fortifying legal structures, and promoting cross-sectoral cooperation stand as pivotal measures in realizing a future liberated from the detrimental effects of climate change.

How Can India Revive its Investment Cycle

  • 20 Apr 2024

Why is it in the News?

Centre has been meeting its capex targets, but the trajectory of private sector and state governments is less certain.

Context:

  • Policymakers in India are grappling with the imperative task of revitalizing the investment cycle. Despite the central government's success in meeting capital expenditure (capex) targets, uncertainty clouds the trajectory of investments from the private sector and state governments.
  • Thus, a comprehensive examination of India's current investment landscape is essential, scrutinizing key indicators and trends to identify the hurdles and prospects in reigniting the investment momentum.

Overview of Investment Patterns:

  • Fluctuating Investment Rates: The investment rate, representing gross fixed capital formation as a percentage of GDP, has shown variability in recent years.
    • After dropping to 27.2% in 2020-21, there has been a slight improvement, with the rate climbing to 31.3% in 2023-24 from 30.8% in the preceding fiscal year.
    • This increase suggests a possible resurgence in investment sentiment and activity, albeit starting from a relatively low level.
  • Composition of Investments: Delving Deeper: Yet, a closer examination of investment composition reveals noteworthy nuances.
    • A significant part of the recent uptick in capital formation stems from dwelling construction, supported by government initiatives to bolster the housing sector.
    • While housing investments spur economic growth and job creation, diversification is essential for sustainable and equitable development.
  • Declining Investment in Plant and Machinery: Of particular concern is the diminishing share of investments in plant and machinery, crucial for fostering productivity, innovation, and competitiveness across sectors.
    • The allocation of investment to plant and machinery declined from 36% in 2017-18 to 30.7% in 2022-23, indicating a potential shift in investment priorities or hurdles in attracting investments in manufacturing and industrial domains.

Private Sector Investment:

  • Insights from CMIE Data: Examining private sector investment trends often involves analyzing data provided by the Centre for Monitoring the Indian Economy (CMIE), offering valuable insights into the investment intentions and actions of private enterprises.
  • Mixed Signals in Investment Intentions: Recent CMIE data reveals a nuanced picture of private sector investment in India.
    • While new investment announcements dipped to Rs 27.1 lakh crore in 2023-24 from the previous year's Rs 39 lakh crore, they still represented the second-highest figures in a decade.
    • However, it's essential to recognize that these announcements signify intentions rather than realized investments, potentially leading to disparities between planned projects and actual investments.
  • Prevalence of Private Sector Intentions: The bulk of investment intentions—around 85%—originated from the private sector, underscoring its pivotal role in driving investment dynamics.
    • Furthermore, foreign companies contributed 11% of the total investment intentions, reflecting a certain degree of confidence in India's business landscape among international investors.

Analyzing Investment Trends Across Sectors:

  • Power Sector Dynamics: Investment inflows into the power sector have surged, reflecting a strategic focus on bolstering infrastructure, particularly in renewable energy projects like solar and wind power, driven by initiatives such as the Production Linked Investment (PLI) scheme.
    • This expansion not only enhances energy security and environmental sustainability but also stimulates job creation and technological advancements.
  • Transportation Sector Insights: Investment intentions in transportation services, notably aviation, have risen sharply due to ambitious expansion plans by major airlines.
    • While these investments promise improved connectivity and economic growth, concerns persist about reliance on imported aircraft, emphasizing the need for initiatives to foster domestic manufacturing and technological capabilities.
  • Diverse Industry Investment Trends: Various industries, including chemicals, machinery, metals, and automotive sectors, have attracted substantial investment commitments, reflecting a broad spectrum of opportunities for private sector investment.
    • However, the absence of significant investments in consumer goods industries raises questions about the depth and breadth of sectoral investments.
  • Challenges in Consumer Goods: Consumer goods industries face challenges such as excess capacity, subdued demand, and high inflation, which dampen investment enthusiasm despite government incentives like the PLI scheme.
    • Lingering issues in job creation and rural demand further contribute to the subdued investment outlook in this segment.
  • Impact of State Government Spending: Reduced capital expenditure by state governments in 2022-23 to meet fiscal targets poses a challenge to the investment cycle, given their significant contribution to overall investments.
    • Budgetary constraints in state governments have a ripple effect on the broader investment landscape in the country.

Way Forward:

  • Promoting Sustainable Growth: While the rise in capital formation is encouraging, ensuring its sustainability and fostering long-term growth hinges on achieving a balanced distribution of investments across sectors.
    • Over-reliance on specific industries, like construction, may impede the economy's adaptability and hinder innovation and technological progress.
  • Policy Imperatives for Investment Stimulus: Effective policy measures are imperative to stimulate private sector investment and cultivate a favorable investment environment.
    • Streamlining regulatory frameworks, bolstering infrastructure, fostering innovation and entrepreneurship, and addressing sector-specific hurdles can incentivize private enterprises to invest in vital areas crucial for fostering economic growth and advancement."

Conclusion

Revitalizing India's investment cycle demands collaborative action from public and private stakeholders. Despite promising sectors, obstacles like sectoral disparities, muted consumer demand, and fiscal limitations at the state level impede a comprehensive rebound. Tackling these hurdles via tailored policies to spur demand, foster sectoral variety, and bolster the investment environment will be pivotal for nurturing enduring economic progress and advancement.

Left Wing Extremism/Naxalism in India

  • 17 Apr 2024

Why is it in the News?

At least 29 Maoists were killed and three security personnel were injured in a gunbattle recently in a forest in Kanker district of Bastar division in Chhattisgarh.

Context:

  • In a significant development, at least 29 Maoists were neutralized, and three security personnel sustained injuries during a fierce gun battle in a forested area of the Kanker district in Chhattisgarh's Bastar division.
  • This successful joint operation, conducted by the District Reserve Guards (DRG) and the Border Security Force (BSF), marked the highest number of Maoist casualties recorded in a single operation within the Bastar region.
  • The operation involved a strategic collaboration between the DRG, a specialized anti-Naxal force, and the BSF, with a well-executed plan that allowed them to engage and ultimately overpower the Maoists.

What is Left Wing Extremism?

  • Left-Wing Extremism (LWE), also referred to as left-wing terrorism or radical left-wing movements, encompasses political ideologies and groups that aim to achieve substantial societal and political transformation through revolutionary methods.
  • These groups may resort to targeting government institutions, law enforcement agencies, or private property to advance their objectives.
  • India's LWE movement traces its origins back to the 1967 uprising in Naxalbari, West Bengal, which set the stage for the emergence of various left-wing extremist groups.
    • According to the Ministry of Home Affairs, LWE has impacted 90 districts across 10 states, with varying degrees of influence.

Maoist Presence Across India:

Maoist influence varies in intensity across different Indian states:

  • Severely Affected States: Chhattisgarh, Jharkhand, Odisha, and Bihar face significant Maoist presence and activities, with frequent attacks on security forces and civilians.
  • Partially Affected States: West Bengal, Maharashtra, and Andhra Pradesh experience a more moderate Maoist presence, with occasional incidents and clashes.
  • Slightly Affected States: Uttar Pradesh and Madhya Pradesh have a lower level of Maoist activity but are still considered areas of concern.
  • The Communist Party of India (Maoist) has been attempting to expand its influence in the southern states of Kerala, Karnataka, and Tamil Nadu, aiming to connect the Western and Eastern Ghats.
  • Additionally, incursions into Assam and Arunachal Pradesh have raised concerns about long-term strategic implications.

Factors Contributing to Left-Wing Extremism in India:

Several underlying factors contribute to the rise and persistence of Left-Wing Extremism (LWE) in India:

  • Inequitable Development: Many LWE-affected regions are among India's least developed areas, characterized by high poverty, unemployment, illiteracy, malnutrition, and social exclusion rates.
    • LWE groups often exploit the grievances of marginalized communities, particularly tribal populations, who have been deprived of land, forest, and mineral rights.
  • Marginalization: Naxalites primarily consist of Dalits, Adivasis, and other marginalized sections of society.
    • Maoist teachings deeply influence their leadership, with land reforms and economic development being key issues.
  • Governance Deficit: LWE-affected areas often suffer from inadequate governance, administration, and service delivery.
    • Weak or corrupt state institutions leave a vacuum that LWE groups can exploit.
    • These groups also use violence and intimidation to disrupt democratic processes, including elections, local governance, and development schemes.
  • Ideological Appeal: LWE groups claim to represent the interests of oppressed and exploited classes, promoting a radical ideology that rejects parliamentary democracy and advocates for armed revolution.
    • Drawing inspiration from Mao Zedong and the 1967 Naxalbari uprising, these groups may also have links to other extremist and separatist movements in India and abroad.
  • Globalization and Cultural Displacement: The impacts of globalization, such as cultural changes and displacement, can cause feelings of dislocation and alienation.
    • Left-wing extremist movements may offer identity and purpose to individuals marginalized by global forces.
  • Support Base: The Naxalite movement draws support from the landless, sharecroppers, agricultural laborers, Harijans, and tribals.
    • As long as these groups continue to face exploitation and social injustice, the Naxalite support base will persist.

The Challenges Posed by Naxalites to India:

The Naxalite movement presents several challenges to India's stability and development:

  • Vulnerability to External Threats: Naxalite activities expose India's internal vulnerabilities, potentially inviting external threats.
    • The CPI (Maoist) has close ties with Northeast insurgent groups, many of which have links to external forces hostile to India.
    • The CPI (Maoist) has also expressed solidarity with Jammu and Kashmir terrorist groups.
  • Impediments to Economic Development: Focusing on India's poor and marginalized regions, Naxalite activities hinder economic development efforts crucial for improving these areas' conditions.
    • Internal stability is essential for a nation's economic progress.
  • Additional Internal Security Expenses: Scarce resources are diverted towards defense and internal security to counter Naxalite threats, which could be better utilized for social development initiatives.
  • Adverse Impact on Governance: Naxalite domination in certain areas disrupts governance through violent tactics, such as killings, kidnappings, intimidation, and extortion.
    • This hampers the delivery of essential services to citizens in affected regions.

Steps Taken by the Government to Counter Left-Wing Extremism:

To tackle the challenges posed by Left-Wing Extremism (LWE), the Indian government has implemented various strategies and initiatives:

  • Deployment of Central Armed Police Forces (CAPFs): CAPF battalions and Naga Battalions (BNs) are deployed to support state police forces in LWE-affected areas, providing additional security and resources.
  • Security Related Expenditure (SRE) Scheme: The SRE scheme funds the recurring expenditures related to insurance, training, and operational needs of security forces, rehabilitation of surrendered LWE cadres, and awareness campaigns against violence.
  • Review and Monitoring Mechanisms: The Ministry of Home Affairs regularly monitors the LWE situation at multiple levels through various review and monitoring mechanisms.
  • Strengthening Intelligence Gathering: Intelligence capabilities at the central and state levels have been bolstered through measures like intelligence sharing via the Multi-Agency Centre (MAC) and State Multi-Agency Centre (SMAC) on a 24/7 basis.
  • Inter-state Coordination: Given the cross-border nature of Maoist operations, the government facilitates frequent meetings and interactions between officials from bordering LWE-affected districts to enhance inter-state coordination.
  • Countering Improvised Explosive Devices (IEDs): As IEDs are a significant threat, the Home Ministry has developed a Standard Operating Procedure (SOP) on explosives, IEDs, and landmines in affected areas, which has been shared with stakeholders for implementation.
  • Enhanced Air Support: State governments and CAPFs have received increased air support, including UAVs and helicopters, for anti-Naxal operations and casualty evacuations.

Progress and Impact of the Measures:

  • Over the past eight years, India has witnessed a substantial decrease in left-wing extremism violence and its geographical spread, thanks to the government's comprehensive measures:
  • The number of left-wing extremism-related incidents dropped significantly in 2022 compared to 2013, totaling 413.
  • Left-wing extremism-related deaths also experienced a substantial decline, with a 75% reduction from 397 in 2013 to 98 in 2022.
  • The year 2022 saw a 33% decrease in resultant deaths and a 68% decrease in security forces' casualties compared to 2021.

Way Forward:

  • Effective Implementation of PESA Act: Ensure proper and complete implementation of the Panchayats (Extension to Scheduled Areas) Act, 1996 (PESA) by issuing clear policy directives to empower gram sabhas.
    • Align the Act with the historical and traditional tribal way of life and address implementation gaps that Maoists exploit.
  • Tribal Empowerment and Representation: Foster tribal leadership by providing platforms for their voices to be heard and increasing representation in local governance structures and political processes.
    • Address tribal communities' aspirations and ensure policies accommodate their unique needs and perspectives.
  • Targeted Development Programs: Implement development programs addressing socio-economic issues faced by tribal communities, including infrastructure, healthcare, education, and employment opportunities. Involve local communities in participatory decision-making processes for initiatives.
  • Counter Maoist Propaganda: Develop communication strategies to expose the gap between Maoist rhetoric and actions.
    • Collaborate with local media, community leaders, and influencers to spread accurate information and counter misinformation.
  • Negotiation and Conflict Resolution: Explore avenues for peaceful negotiation with moderate Maoist factions, identifying root causes of discontent and involving neutral mediators, civil society organizations, and respected community leaders in peacebuilding efforts.
  • Human Rights Protection: Prioritize human rights protection in conflict zones, ensuring security measures align with the rule of law and minimizing collateral damage and civilian casualties.
  • Long-term Strategic Planning: Develop a comprehensive, long-term strategy focused on sustainable development, social justice, and inclusive governance to address underlying issues contributing to the insurgency.

Conclusion

There is a widely acknowledged perspective that effectively addressing the Naxal issue requires a balanced approach involving both developmental and security measures. It's crucial not to solely consider it as a law and order challenge, as innocent tribal communities residing in remote forest areas often become targets of Naxal intimidation. Priority lies in re-establishing governance in Naxal-affected regions, fostering their development, and empowering marginalized communities to lead secure, dignified, and improved lives

Climate Crisis is Not Gender Neutral

  • 10 Apr 2024

Why is it in the News?

The climate crisis is far from “gender neutral” as women and men are affected differently by weather and climate and therefore need gender-sensitive information and services.

Context:

  • As the climate crisis intensifies, its disproportionate impact on women and girls becomes more evident, particularly in poverty-stricken regions.
  • This calls for a critical examination of the gender dimensions of climate change, recognizing women's increased vulnerabilities and the importance of incorporating gender perspectives in climate action strategies.
  • By doing so, we can develop effective solutions that address the unique challenges faced by women, ensuring a more equitable and sustainable approach to climate change mitigation and adaptation.

How Does Climate Change Impact Women?

  • Rural Livelihood Dependence on Agriculture: In many regions, particularly rural India, women play a central role in agricultural activities, forming the backbone of their communities' livelihoods.
    • However, the effects of climate change, such as erratic rainfall, droughts, and floods, pose significant threats to crop yields, directly impacting food security and income for these women.
    • Compounded by limited access to essential resources like land, credit, and technology, women face heightened vulnerabilities in navigating climate-related risks.
  • Health Risks Amplified by Climate Hazards: Women's health is uniquely susceptible to the challenges posed by climate change.
    • For instance, prolonged heatwaves increase the risk of complications during pregnancy, including preterm birth and eclampsia.
    • Moreover, exposure to indoor and outdoor air pollution exacerbates respiratory and cardiovascular diseases among women and unborn children, compromising their well-being.
  • Gender Dynamics in Extreme Weather Events: The rise in the frequency of extreme weather events, such as floods, droughts, and cyclones, has profound implications, particularly for vulnerable populations.
    • Reports highlight that a significant portion of Indian districts are susceptible to such disasters, placing women and children at heightened risk.
    • Emerging studies underscore a concerning correlation between these natural calamities and incidents of gender-based violence against women.
    • Additionally, disruptions in water access due to climate-induced changes affect women's ability to engage in productive activities and access healthcare, intensifying their workload and compromising their overall welfare.
  • Nutritional Challenges and Early Marriage: In regions prone to drought, women and girls face heightened risks of undernutrition due to food insecurity.
    • Data indicates that women residing in these areas are more likely to experience underweight conditions and are at a higher risk of entering early marriages, perpetuating cycles of poverty and gender inequality.

How to Empower Women in Climate Action?

  • Rich Tradition of Environmental Stewardship: Throughout history, women have been integral to environmental conservation efforts.
    • Across various communities, they serve as primary custodians of natural resources, managing land, water, and forests with a deep-rooted understanding of sustainability.
    • Their traditional knowledge and practices are invaluable assets for fostering biodiversity conservation and promoting climate-resilient agricultural techniques.
  • Boosting Agricultural Productivity and Food Security: Providing women farmers with equitable access to resources such as land, credit, and agricultural inputs unleashes their potential to enhance agricultural productivity and adapt to climate change.
    • Research indicates that closing the gender gap in agriculture could significantly increase crop yields and bolster food security.
    • Women's innate connection to smallholder farming systems enables them to innovate with cost-effective, environmentally friendly farming methods, thereby fostering resilience in agricultural practices.
  • Key Players in Local Adaptation Strategies: Women are pivotal to the success of community-based adaptation efforts, which prioritize building resilience to climate change at the grassroots level.
    • Through women's groups and collectives like Self-Help Groups (SHGs) and Farmer Producer Organizations (FPOs), communities mobilize, share knowledge, and implement adaptation measures.
    • These grassroots initiatives empower women to advocate for their rights in decision-making processes concerning natural resource management and climate resilience.
  • Inspiring Role Models and Catalysts for Change: Women leaders in climate action serve as inspirations and role models, paving the way for future generations of environmentalists and activists.
    • Their prominence in climate solutions not only challenges gender norms but also encourages greater participation of women and girls in STEM fields and environmental leadership roles.
    • By highlighting women's contributions to climate action, these role models empower others to pursue careers and opportunities in climate science, policy, and advocacy, fostering a more inclusive and impactful approach to addressing climate change.

Action Needed to Address the Gender Implications of Climate Change:

  • Immediate Protection Against Health Risks: Swift action is imperative to safeguard vulnerable populations, such as pregnant women, outdoor laborers, children, and the elderly, from health risks exacerbated by extreme weather events like heat waves.
    • Local authorities must develop and implement comprehensive heatwave response plans, incorporating early warning systems, establishing cooling centers, and adapting work and school schedules to mitigate heat-related illnesses and fatalities.
  • Improved Access to Safe Drinking Water: Climate-induced disruptions to water sources escalate water scarcity and endanger public health.
    • Immediate interventions are essential to enhance access to safe drinking water, particularly for women and girls responsible for water collection in many communities.
    • Investments in water infrastructure, rainwater harvesting systems, and water purification technologies are vital to alleviate the impacts of water scarcity on vulnerable populations.
  • Climate-Resilient Urban Planning: Urban areas face escalating vulnerabilities to climate-related hazards, including heatwaves, flooding, and air pollution.
    • Urban planning strategies emphasizing green infrastructure—such as parks, green roofs, and tree-lined streets—can mitigate the urban heat island effect and minimize exposure to extreme temperatures.
    • Moreover, measures to enhance air quality, like reducing vehicular emissions and promoting clean energy technologies, are crucial for safeguarding public health, particularly for women and children susceptible to respiratory and cardiovascular diseases.
  • Community-Centered Adaptation Efforts: Community-based adaptation initiatives, engaging local communities, including women's groups and grassroots organizations, are pivotal in bolstering resilience to climate change at the grassroots level.
    • These initiatives should prioritize the needs and aspirations of women and marginalized groups, empowering them in decision-making processes regarding adaptation planning and implementation.
    • Investments in building the capacity of local institutions and community leaders can amplify the efficacy and sustainability of adaptation endeavors.
  • Gender-Inclusive Climate Policies: National and sub-national climate policies must integrate gender-responsive approaches tailored to the distinct needs and priorities of women and girls.
    • Recognizing women as agents of change and empowering their participation in climate decision-making at all levels is essential.
    • Gender mainstreaming in climate policies ensures inclusivity, equity, and effectiveness in tackling the underlying drivers of vulnerability and inequality.

Conclusion

The disparities and vulnerabilities experienced by women and girls underscore the urgent need for inclusive and gender-responsive strategies in climate adaptation and mitigation endeavors.

By empowering women, we not only bolster resilience but also unlock innovative solutions crucial for combating the climate crisis. Thus, the integration of gender perspectives into climate action plans is imperative for forging a sustainable and equitable future for all

Indian Aviation, A Case of Air Safety at a Discount

  • 09 Apr 2024

Why is it in the News?

The government introduced revised Flight Duty Time Limitations (FDTL) Regulations, set to be implemented on June 1, 2024, but faced opposition from airline owners, prompting the DGCA to indefinitely defer the deadline.

Context:

  • The aviation sector in India faces a pivotal moment, balancing rapid growth with pressing safety issues.
  • The remarks from the Union Minister and the DGCA, highlighting safety as paramount, seem at odds with ongoing safety lapses.
  • Given the significance of safety measures, it's imperative to examine safety protocols, parameters, challenges, and regulatory shortcomings.

Key Provisions in the Revised FDTL Regulations of January 2024:

  • Extended Weekly Rest Periods for flight crew: The revised regulations mandate increased weekly rest periods from 36 hours to 48 hours for flight crew, thus ensuring sufficient time for recovery from cumulative fatigue.
  • Night Duty: The definition of night has been amended, and it now covers the period of 0000-0600 hours in the revised regulations vis-à-vis the period of 0000-0500 hours under the previous regulations.
    • This enhancement of one hour during the early morning will ensure adequate rest and also align the night duty period, which encompasses the Window of Circadian Low (WOCL) from 0200-0600 hours, i.e. the time during which the circadian body clock cycle is at its lowest in terms of alertness.
  • Maximum Flight Time, Maximum Flight Duty Periods, and Number of Landings during Night: The revised regulations have taken into consideration different types of operations across time zones.
    • The maximum flight time & maximum flight duty period for flight operations encroaching night have been restricted to 8 hours flight time & 10 hours flight duty period, respectively, and the number of landings has been limited to only two landings as compared to the maximum permissible 6 landings under previous regulations during night operations, thus enhancing flight safety.
  • Quarterly fatigue reports: In addition, DGCA has mandated that all airline operators submit quarterly fatigue reports after analysis, including the Action Taken on such reports.
    • Further, it has been stipulated that the fatigue reports shall follow a non-punitive and confidentiality policy.

What is the Fatigue Risk Management System (FRMS)?

  • The Directorate General of Civil Aviation (DGCA) is preparing to introduce a novel approach, known as the Fatigue Risk Management System (FRMS), to handle fatigue among flight crew.
  • The recent revision of Flight Duty Time Limitation (FDTL) regulations marks the initial phase of FRMS implementation in India.
  • FRMS represents a data-driven strategy aimed at enhancing the monitoring and documentation of flight crew fatigue.
  • The successful integration of FRMS hinges upon collaborative efforts from various stakeholders within the aviation sector, including regulators, airline operators, and flight crew, who must demonstrate readiness to embrace this new framework.
  • This transition necessitates rigorous oversight, meticulous record-keeping, and comprehensive reporting to uphold compliance with the FRMS framework.

The Imperative for Implementing Fatigue Risk Management System (FRMS):

  • The International Civil Aviation Organization (ICAO) has mandated the adoption of the Fatigue Risk Management System (FRMS) to address safety concerns.
  • Extensive analysis of accidents and serious incidents attributed to fatigue has underscored the critical role of adequate rest and sleep deprivation in impairing pilots' reaction times.
    • Countries like Japan, Singapore, and the United Kingdom prioritize flight crew fatigue management and emphasize regular rest periods to mitigate cumulative fatigue.
    • These nations implement a system where pilots receive two days off each week to reset their circadian rhythm and recuperate from prolonged flying hours, with additional rest upon returning from long-haul flights.
  • In contrast, existing Flight Duty Time Limitation (FDTL) regulations afford pilots only 30 days of annual leave and one day off per week, which pales in comparison to the leisure time granted to ground personnel.
  • Airline schedules often overlook human performance limitations, neglecting the fact that pilots, like any other individuals, require time with their families.
    • Thus, providing two days off per week is essential for maintaining a healthy work-life balance.

Other concerns in the aviation sector:

  • Runway End Safety Area (RESA): The absence of RESA at Kozhikode's Karipur airport has sparked warnings from the Minister for Civil Aviation about compromised passenger safety.
    • Recommended by the Aircraft Accident Investigation Bureau following a 2020 air crash, the Ministry has threatened to curtail runway length unless land is handed over to the Airports Authority of India (AAI).
    • As of April 2024, no land has been provided, and flights remain unrestricted.
  • Utilization of Pilots and Adherence to Safety Regulations: While the Directorate General of Civil Aviation (DGCA) sets minimum crew requirements, airlines can opt for lower flight time and duty hours.
    • Large aircraft orders often adhere to DGCA Civil Aviation Requirements for scheduled transport, which only specifies the minimum crew requirement.
    • The crew requirement would more than double under the Flight Duty Time Limitations (FDTL) CAR, but the DGCA does not monitor crew numbers based on these requirements.
    • This is primarily due to the potential impact of positive media coverage and the reputation of India's aviation industry.
  • Financial Stress on Pilots: Financial stress has been identified as a contributing factor to aircraft crashes, such as the Silkair crash in 1997 and the Egyptair crash in 1999.
    • However, authorities in India often fail to adequately address the dangers of financial stress among pilots.
    • A prime example is the recent merger of Vistara with Air India, where Vistara copilots faced a significant pay cut upon losing their command position, leading to increased financial strain.

Way Forward:

  • Implementing ICAO Annex 1 Standards: A crucial step towards a more robust aviation sector involves adopting the International Civil Aviation Organization's (ICAO) Annex 1 standards, facilitating the recognition of foreign licenses and issuance of Indian licenses based on specific criteria.
    • This streamlined process can attract experienced pilots, addressing shortages and elevating workforce competency.
  • Harnessing Retired Pilots' Expertise: Utilizing retired pilots in training roles, particularly within simulator training centers, allows India to tap into their valuable experience and knowledge to mentor the next generation of aviators.
    • By addressing training gaps and bolstering proficiency standards, this initiative enhances safety outcomes while supporting the professional growth of aspiring pilots.
  • Strengthening Monitoring and Compliance: Regulatory bodies, such as the Directorate General of Civil Aviation (DGCA), should fortify their monitoring mechanisms to ensure adherence to Flight Duty Time Limitations (FDTL) regulations and crew staffing requirements.
    • This vigilance aids in identifying instances of non-compliance, mitigating fatigue-related risks, and fostering collaboration with airlines to manage crew resources effectively.
  • Cultivating a Safety-Oriented Culture: Promoting a safety culture within the aviation industry is vital for achieving sustainable safety outcomes.
    • Stakeholders should prioritize safety initiatives, invest in training programs, and encourage open communication channels for reporting concerns.
    • This collaborative approach nurtures a safety-focused environment that benefits all parties and strengthens the overall aviation landscape.

Conclusion

The postponement of fatigue management regulations underscores the complexities of balancing safety concerns with commercial interests within India's aviation industry. To safeguard both flight safety and crew welfare, regulatory authorities must prioritize the implementation of rigorous fatigue management protocols and withstand industry pressures that jeopardize safety standards. It is only through a unified commitment to rectifying regulatory deficiencies and cultivating a culture of safety that India's aviation sector can maintain the utmost standards of flight safety and operational proficiency.

India Planning to Adopt ‘Living Wage’ Instead of ‘Minimum Wage’ by 2025

  • 06 Apr 2024

Why is it in the News?

India is reportedly poised to replace the minimum wage with the living wage system, with the transition anticipated to occur by next year.

Context:

  • India is reportedly considering shifting from the minimum wage to the living wage by 2025.
  • India has approached the International Labour Organization (ILO) to help it chalk out a framework to assess and operationalize the living wages.
  • India has asked the ILO to help it in “capacity building, systemic collection of data and evidence of the positive economic outcomes resulting from the implementation of living wages”.
    • Earlier in March, the United Nations agency forged an agreement on the living wage, which was also endorsed by its governing body.
  • India, a founding member of the ILO and a permanent member of its governing body since 1922, passed the Code on Wages in 2019.

What is the Current Wage System in India?

  • National Floor Level Minimum Wage (NFLMW): Established under the Code on Wages 2019, the NFLMW is determined by the government, requiring establishments to set minimum wages not below this level.
  • Flexibility in Minimum Wage Standards: Section 5 of the Code on Wages 2019 prohibits employers from setting wages below the NFLMW, though states have the discretion to revise minimum wage rates as needed.
  • Presently, the National Floor Wage stands at Rs 178 per day.

What’s a Living Wage?

  • The International Labour Organization (ILO) defines the living wage as the level of remuneration “necessary to afford a decent standard of living for workers and their families, taking into account the country's circumstances and calculated for the work performed during the normal hours of work”.
  • This decent standard of living includes being able to afford food, water, housing, education, healthcare, transportation, clothing, and other basic needs including a provision for contingencies, says the Global Living Wage Coalition.
  • The goal of a living wage is to ensure the employees get an income enough for satisfactory living standards as well as reduce poverty.

What is Minimum Wage?

  • Minimum wage refers to the legally mandated lowest level of compensation that employers must pay employees for their work over a specified period.
  • While minimum wage endeavors to prevent low pay, living wage extends beyond by ensuring income is adequate to meet necessities like food, shelter, clothing, and other essentials, addressing the risk of workers falling below the poverty line despite earning minimum wages.
  • In India, minimum wage calculation factors in variables such as the state of employment, the skill level of the worker, the nature of their job, and other pertinent factors.

Living Wage vs Minimum Wage:

  • Definition: A living wage is the income required to meet basic needs and maintain a decent standard of living, while minimum wage is the lowest legally mandated compensation for workers.
  • Purpose: A living wage seeks to address the risk of workers falling below the poverty line, while minimum wage aims to prevent low pay.
  • Mandatory vs Voluntary: Minimum wages are legally required, whereas living wages are voluntary unless the government sets the minimum wage at the living wage level.
  • Calculation: Living wages consider basic necessities and a decent standard of living, while minimum wages factor in variables like skill level, state of employment, and job nature.

Pros and Cons of Living Wages:

  • Living wage is a divisive issue. Proponents of the living wage say people get paid more, leading to a rise in employee satisfaction.
  • A boost in employee morale is likely to result in higher productivity.
  • It also saves recruitment and training costs for companies as employee turnover falls.
  • On the other hand, critics of the concept say companies may cut back on hiring if forced to pay increased wages, creating more job losses.
  • Opponents also argue that imposing a living wage means creating a wage floor, which would hurt the economy by impacting businesses, especially those that cannot pay hiked salaries.

How Does Living Wage Benefit India?

  • India has over 500 million (50-crore) workers, of which 90 percent are in the unorganized sector, noted ET.
  • The national floor level minimum wage (NFLMW) – an amount below which no state government can fix the minimum wage – was Rs 178 per day or more depending on the location in 2023.
    • This was set at Rs 176 per day in 2017 and has not been changed since then.
  • Currently, some states pay workers in the unorganized sector even below the NFLMW.
  • The Code on Wages, 2019 was passed by Parliament states that the minimum wage cannot be fixed below the national wage floor.
  • However, this code, which is binding on all states, is yet to be implemented.
  • If India replaces the minimum wages with living wages, workers are expected to earn more.
  • According to the ILO, the living wage has to be calculated following its principles and wage-setting process.

Conclusion

India's pursuit of the Sustainable Development Goals by 2030 hinges on strategic shifts, such as transitioning from minimum to living wages, to uplift millions from poverty while safeguarding their welfare. This is particularly pertinent against the backdrop of escalating income inequality, highlighting the imperative for a revamped wage system. As poverty rates decline yet inequality persists, a more equitable approach to wages becomes paramount, underscoring India's commitment to inclusive growth and social justice.

International Labor Organization (ILO):

  • The International Labor Organization (ILO) is a specialized agency of the United Nations, founded in 1919 to promote social and economic justice through the establishment of international labor standards.
  • The ILO operates with a unique tripartite structure, allowing governments, employers, and workers to engage in dialogue and decision-making on labor matters.

Key Roles and Functions:

  • Setting International Standards: The ILO develops and adopts international labor standards in the form of conventions and recommendations, covering areas such as freedom of association, collective bargaining, child labor, forced labor, and non-discrimination.
  • Technical Assistance and Capacity Building: The organization provides support to member states in enhancing their labor administration, labor inspection, employment policies, and social protection systems.
  • Monitoring and Supervision: The ILO monitors the application of international labor standards in member states, offering guidance and assistance in their implementation.
  • Research and Knowledge Sharing: The organization conducts research, collects data, and disseminates information on labor-related topics, facilitating evidence-based policy-making and dialogue.
  • The ILO plays a critical role in promoting decent work, social justice, and labor rights worldwide, fostering cooperation among its 187 member states to address labor-related challenges and achieve sustainable development.
  • The ILO headquarters are located in Geneva (Switzerland).

Heat Waves and its Impacts in India

  • 02 Apr 2024

Why is it in the News?

The India Meteorological Department (IMD) has forecast a harsh and arid summer over a majority of regions of the country during April- June, with a high probability of heatwave episodes lasting as long as 10 to 20 days during the period.

Recent Prediction by India Meteorological Department (IMD):

  • Extreme Heat Outlook: India is anticipated to face extreme heat from April to June, with central and western regions likely to be most affected.
    • Expectations of 10 to 20 heatwave days across the country, exceed the normal range of four to eight days.
    • Regions including Gujarat, central Maharashtra, north Karnataka, Rajasthan, Madhya Pradesh, Odisha, north Chhattisgarh, and Andhra Pradesh are forecasted to experience severe heatwaves in April.
  • Pre-Monsoon Rainfall Performance: Below-average pre-monsoon rainfall is expected this month, particularly impacting coastal, eastern, and southern India.
  • El Nino Conditions: El Nino conditions, marked by abnormal sea surface warming in the equatorial Pacific Ocean since last June, have the potential to reduce rainfall and increase temperatures, both locally in India and globally.
    • Despite El Nino conditions easing after peaking in December, persistent warm conditions continue to elevate global temperatures.
  • Recent Weather Conditions: February and March witnessed hotter-than-normal weather in southern India.
    • Heatwave conditions were reported in Maharashtra, northern Karnataka, Saurashtra-Kutch, and parts of Rajasthan during late March.
    • Maximum temperatures soared to 42.6 degrees Celsius in areas such as Akola in Maharashtra and Phalodi in Rajasthan.

What are Heat Waves?

  • Heatwaves entail prolonged periods of exceptionally hot weather, posing adverse effects on human health, the environment, and the economy.
  • Given India's tropical climate, the nation is especially susceptible to heat waves, which have witnessed increased frequency and intensity in recent times.

What is the Criterion for Declaring a Heat Wave?

For Plains and Hilly Regions:

  • Heatwave is recognized when the maximum temperature of a station reaches at least 40°C or higher for Plains and at least 30°C or higher for Hilly regions.
  • Determined based on Departure from Normal Heat Wave:
    • Departure from normal temperature ranges from 4.50°C to 6.40°C, with anything exceeding 6.40°C classified as a Severe Heat Wave.
  • Alternatively, based on Actual Maximum Temperature Heat Wave:
    • A heat wave is declared when the actual maximum temperature equals or exceeds 45°C, while a Severe Heat Wave is acknowledged if the actual maximum temperature equals or exceeds 47°C.
  • Declaration occurs when the above criteria are met in at least 2 stations within a Meteorological subdivision for a minimum of two consecutive days, with the declaration taking effect on the second day.

For Coastal Areas:

  • A heat wave may be identified when the maximum temperature departure from normal is 4.50°C or more, provided the actual maximum temperature registers at 37°C or higher.

Fatality Risk:

  • While high temperatures alone may not be lethal, it's the conjunction of elevated temperatures and humidity, known as the wet bulb temperature, that renders heatwaves perilous.
  • Increased moisture levels impede sweat evaporation and hinder body cooling mechanisms, leading to a rapid rise in internal body temperature, frequently resulting in fatal outcomes.

What are the Causes of Heatwaves?

  • Global Warming: A primary factor driving heatwaves in India is global warming, a consequence of sustained increases in Earth's average temperature linked to human activities like fossil fuel combustion, deforestation, and industrial operations.
    • Elevated temperatures and altered weather patterns can stem from this phenomenon.
  • Rapid Urbanization: Rapid urban expansion and the proliferation of urban landscapes contribute to the "urban heat island effect."
    • Urban areas, dense with population, structures, and concrete surfaces, absorb and retain heat, intensifying temperatures, particularly during heatwaves.
  • El Nino Influence: El Nino events, characterized by Pacific Ocean warming, exert global climatic impacts, triggering shifts in temperature, precipitation, and wind patterns.
    • The conclusion of a strong La Nina phase in the equatorial Pacific Ocean and the untimely onset of an El Nino event are anticipated factors contributing to the exceptionally hot forecast for the summer of 2023.

What are the Impacts?

  • Health Effects: Swift escalation in heat exposure can disrupt the body's ability to regulate temperature, resulting in various ailments such as heat cramps, heat exhaustion, heatstroke, and hyperthermia, potentially leading to fatalities or hospitalizations.
  • Water Resources Impact: Heatwaves exacerbate water scarcity issues in India, causing water bodies to dry up, diminishing water availability for agriculture and domestic use, and intensifying competition for water resources, fostering conflicts and influencing irrigation practices and water-reliant industries.
  • Energy Impact: Elevated temperatures heighten demand for cooling, straining power grids and heightening the risk of blackouts, disrupting economic operations, reducing productivity, and adversely affecting vulnerable communities without reliable access to cooling amenities during heatwaves.

How to Mitigate Extreme Heat Wave Events?

  • To mitigate the adverse effects of heat waves and climate change, a comprehensive action plan must be implemented at various levels:
  • Heat Wave Action Plan: Develop a long-term plan to protect human lives, livestock, and wildlife by prioritizing effective adaptation strategies and robust disaster management policies.
    • Ensure proper implementation of the Sendai Framework for Disaster Risk Reduction, with governments taking the lead and engaging multiple stakeholders.
  • Implementing Climate Action Plans: Commit to the National Action Plan for Climate Change (NAPCC) for inclusive growth and ecological sustainability.
    • Emphasize nature-based solutions that uphold ethical standards and promote intergenerational justice.
  • Sustainable Cooling: Adopt passive cooling technology to create naturally ventilated buildings, reducing the urban heat island effect in residential and commercial areas.
    • Consider adapting ancient Indian building designs, as recommended by the Intergovernmental Panel on Climate Change (IPCC), to modern facilities.
  • Heatwave Mitigation Plans: Implement measures to prevent heat-related fatalities, including providing access to water, oral rehydration solutions, shade in public spaces, flexible working hours, and accommodations for outdoor workers.
    • Vigilant local administration and oversight by higher authorities are key to successful implementation.
  • By implementing these strategies and fostering collaboration among stakeholders, we can create a more resilient future that effectively addresses the challenges posed by heat waves and climate change.

Indian Meteorological Department (IMD):

  • India Meteorological Department is the country's National Meteorological Service.
  • It deals with all matters relating to meteorology, seismology, and associated subjects. 
  • IMD is headquartered in Delhi and operates hundreds of observation stations across India and Antarctica.
  • IMD units such as Forecasting Offices, Agrometeorological Advisory Service Centers, Hydro-meteorological Offices, Flood Meteorological Offices, Area Cyclone Warning Centers, and Cyclone Warning Centers are usually co-located with various observatories or meteorological centers.
  • IMD is also one of the six Regional Specialized Meteorological Centres of the World Meteorological Organization.
  • It is responsible for forecasting, naming, and distributing warnings for tropical cyclones in the Northern Indian Ocean region, including the Straits of Malacca, the Bay of Bengal, the Arabian Sea, and the Persian Gulf.
  • Nodal Ministry: Ministry of Earth Sciences of the Indian Government

Understanding India’s Coal Imports

  • 29 Mar 2024

Why is it in the News?

In recent years, the combination of unpredictable weather patterns and rapid economic growth has resulted in significant spikes in electricity demand, posing a challenge to reliably meet the escalating requirements.

Background:

  • India has grappled with the looming threat of electricity shortages in recent years, particularly exacerbated by rising temperatures amplifying the power demand.
  • While discussions on this matter typically revolve around the deficit in domestic thermal coal and the need for imports, a more thorough investigation uncovers intricate challenges concerning logistics and regulatory interpretation.
  • Therefore, it is imperative to delve into these dimensions, shedding light on the complexities of the situation and seeking solutions to tackle the root causes.

What are the Primary Causes of Domestic Thermal Coal Shortages?

  • Transportation Infrastructure Deficiencies: A critical challenge lies in the inadequacy of transportation infrastructure, notably the railway network, which predominantly facilitates coal transportation across India.
    • Despite substantial coal production, the limited capacity of railways often hampers timely delivery to power plants, contributing to delays and inefficiencies in the coal supply chain.
  • Geographical Disparities: Complicating matters, the distribution of coal mines and power plants across diverse regions adds another layer of complexity to logistics.
    • Power plants situated far from coal mines encounter heightened logistical hurdles, facing difficulties in securing a consistent coal supply due to increased transportation time and costs.
  • Storage and Handling Limitations: Insufficient storage and handling infrastructure at both mines and power plants exacerbate challenges in managing demand and supply fluctuations.
    • Inadequate storage capacity can lead to stockpiling issues, exacerbating delays and hindering efficient coal delivery.

Balancing Alternative Domestic Sources and Imports:

  • Exploration of Alternative Domestic Sources: While alternative coal sources, like auctions organized by Coal India Ltd., present a viable domestic option, they often receive less attention compared to imports.
    • These auctions enable power plants to procure coal domestically, albeit potentially at higher prices, yet remain overlooked in favor of imported coal.
    • However, auctions offer a feasible alternative, particularly for plants not hindered by logistical constraints in accessing coal from auction sites.
  • Narrow Focus on Imports: The discourse tends to prioritize imports as the default solution for coal shortages, neglecting the potential of domestic alternatives and failing to consider the broader implications of heavy reliance on imported coal.
  • Cost Implications: Importing coal entails additional costs, including transportation, handling, and import duties, resulting in higher variable costs for coal-based electricity.
    • These expenses are often transferred to consumers through elevated electricity tariffs, burdening both households and industries.
  • Regulatory Interpretation: Misinterpretation of Ministry of Power advisories recommending coal imports as mandates further blur the distinction between alternative sources and imports.
    • While these advisories may propose importing a certain percentage of coal, they should not be perceived as obligatory requirements but rather as guidelines to be tailored to each power plant's unique circumstances.
  • Less Emphasis on Domestic Procurement Enhancement: The emphasis on imports sidelines opportunities to improve domestic coal procurement and distribution processes.
    • Addressing logistical hurdles and streamlining administrative procedures could enhance the efficiency and reliability of India's domestic coal supply chain, potentially reducing the reliance on costly imports.

Regulatory Frameworks Influencing Responses to Electricity Shortages and Coal Procurement Strategies:

  • Clarifying Advisory Interpretations: An ongoing challenge in regulatory considerations involves clarifying interpretations of advisories from government entities like the Ministry of Power.
    • While these advisories may offer recommendations for addressing coal shortages, particularly through import suggestions, they should not be misconstrued as mandates.
    • Misinterpretation can lead to unnecessary costs and burdens on consumers, as power plants may feel compelled to comply with import recommendations, disregarding potentially viable domestic alternatives.
  • Forward-Thinking Regulatory Decision-Making: Regulatory bodies overseeing electricity generation and distribution must adopt a forward-thinking approach to decision-making.
    • This entails comprehensive assessments of regulatory measures' implications on stakeholders, including consumers, power producers, and distribution utilities.
    • Analysis should weigh the costs and benefits of various coal procurement strategies, encompassing factors like transportation costs, import duties, and environmental impacts.
  • Customized Approaches for Diverse Plant Settings: Recognizing the varied challenges among power plants regarding coal shortages, regulatory bodies should tailor measures to each plant's specific circumstances.
    • Pit-head plants, closer to coal mines, may have easier access to domestic coal and encounter fewer logistical constraints compared to plants situated farther away, necessitating heavier reliance on imports.
    • Regulatory interventions should thus be nuanced and adaptable rather than uniformly applied.
  • Balancing Cost-Efficiency and Reliability: Regulators face the critical task of balancing cost and reliability in electricity supply.
    • While imports may offer prompt solutions to coal shortages, they incur substantial costs affecting consumers.
    • Therefore, regulators must meticulously evaluate the potential cost savings of domestic procurement against the reliability and security of imported coal supply, ensuring transparency and equity in decision-making.
  • Long-Term Planning and Sustainability Integration: Regulatory considerations should encompass long-term planning and sustainability objectives alongside immediate coal shortage mitigation.
    • While addressing immediate needs is crucial, regulators must also contemplate the broader ramifications of coal procurement strategies on energy security, environmental sustainability, and renewable energy transition.
    • This necessitates a forward-looking approach aligning short-term actions with long-term sustainability objectives, facilitating India's transition to a resilient and sustainable energy framework.

Conclusion

Addressing electricity shortages in India necessitates a nuanced approach that considers both logistical hurdles and regulatory complexities. While importing coal may offer a temporary solution, it does not tackle the fundamental logistics inefficiencies. India can better navigate the challenges of power generation by addressing root causes and implementing tailored solutions, ensuring a more effective response to evolving weather patterns and increasing demand for electricity

WTO’s Investment Facilitation Negotiations Are Not Illegal

  • 28 Mar 2024

Why is it in the News?

One significant event during the 13th Ministerial Conference (MC13) of the World Trade Organization (WTO) in Abu Dhabi was the inability to ratify the agreement concerning investment facilitation for development (IFD). Despite garnering backing from over 70% of the membership, approximately 120 member countries, the agreement remained unadopted.

Context:

  • The recent 13th Ministerial Conference (MC13) of the World Trade Organisation (WTO) in Abu Dhabi unfolded a notable occurrence as the agreement on investment facilitation for development (IFD) failed to gain adoption.
  • Despite substantial backing from approximately 120 member countries, the IFD Agreement encountered resistance, particularly from India and South Africa.
  • In light of these events, it becomes imperative to delve into India's opposition to the IFD Agreement and its apprehensions regarding its alignment with WTO principles, especially concerning the intertwining of investment with trade and the procedural aspects of negotiation surrounding the agreement.

What is the IFD agreement?

  • The Investment Facilitation for Development (IFD) Agreement is a legally binding framework that aims to enhance investment flows and promote transparency in regulatory processes.
    • Finalized in November 2023, the agreement is the result of plurilateral negotiations initiated by 70 countries under the Joint Statement Initiative at the WTO in 2017.
  • Despite initial opposition from some countries, including India, the IFD Agreement gained significant support, with 120 nations pushing for its inclusion as a plurilateral agreement within Annex 4 of the WTO Agreement.
    • Although the WTO is primarily a multilateral trade organization, the allowance for plurilateral agreements under Article II.3 of the WTO Agreement sets the stage for binding commitments among participating WTO member countries.

Key objectives of the IFD Agreement include:

  • Regulatory Transparency: Increasing openness in investment policies and procedures to instill confidence and predictability in the investment landscape.
  • Streamlined Administrative Procedures: Simplifying investment-related processes and reducing red tape to attract and facilitate foreign investment inflows.
  • By creating a stable and transparent environment for international investments, the IFD Agreement aims to contribute to economic growth and development, catalyzing cooperation among participating WTO members without imposing obligations on non-signatory countries.

What are India’s Concerns?

  • India's resistance to the Investment Facilitation for Development (IFD) Agreement stems from concerns regarding its alignment with the WTO framework and the process undertaken to integrate it into the WTO rulebook.
  • Given the WTO's dispute settlement mechanism, which solely permits state-to-state legal claims, incorporating Investor-State Dispute Settlement (ISDS) appears infeasible.
  • This challenge contributed to India and South Africa's significant efforts to prevent the IFD Agreement from becoming an official component of WTO regulations.

India's primary apprehensions surrounding the IFD Agreement:

  • Integrating Investment into the WTO: India questions the compatibility and relevance of investment policies within the WTO's scope, particularly when considering existing platforms dedicated to investment negotiations.
  • Process-related Concerns: India argues that the procedure for incorporating the IFD Agreement into the WTO rulebook must be carefully scrutinized, ensuring adherence to established protocols and consensus-building among all member nations.
  • While the actual content of the IFD Agreement does not appear to be India's primary concern, the nation's stance underscores the importance of considering the broader implications of such agreements within the global trade and investment landscape.
    • As the international community navigates the complexities of investment facilitation and regulatory reform, the debate surrounding the IFD Agreement will continue to shape the future of multilateral cooperation and the evolution of the WTO's mandate.

Is Investment a Suitable Component of the WTO Framework?

  • India posits that investment's integration into the World Trade Organization (WTO) may not inherently translate to increased cross-border trade, contrasting with scholarly perspectives emphasizing the interconnectedness of trade and investment.
  • Citing the Organisation for Economic Co-operation and Development (OECD), it is highlighted that a substantial portion—70%—of international trade occurs within global value chains, underscoring the symbiotic relationship between trade and investment.
  • Contemporary free trade agreements like the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership exemplify this integration, featuring comprehensive investment provisions encompassing facilitation and protection measures.
  • Intriguingly, India's recent trade pact with the European Free Trade Association, despite including investment provisions focused on facilitation and promotion, underscores a pragmatic approach to incorporating investment elements, albeit with limitations.

Negotiating Process of the IFD Agreement:

  • India has emphasized the absence of a negotiating mandate regarding investment discussions.
  • India contends that the WTO's General Council's decision in 2004 ruled out talks on the nexus between trade and investment, a facet categorized under the 'Singapore issues' introduced during the 1996 WTO Singapore ministerial conference.
  • These discussions were explicitly excluded from the Doha round of negotiations initiated in 2001.
  • Additionally, India has pointed to the 2015 WTO Nairobi ministerial decision, which stipulates that launching negotiations on new issues multilaterally necessitates unanimous agreement among all member states.
  • India argues that since consensus wasn't reached among all nations to commence negotiations on an IFD Agreement, the ensuing negotiations and the resultant text presented for adoption are deemed illegitimate.

Key Questions Surrounding the IFD Agreement:

  • India's assertion of a negative mandate against initiating negotiations on the trade and investment relationship raises two critical queries warranting clarification.
  • Firstly, does this negative mandate extend to all facets of investment, including facilitation?
    • Notably, the shelved investment agreement proposed during the 1996 Singapore ministerial primarily addressed market access and investment protection, leaving ambiguity regarding whether the negative mandate encompasses all investment-related aspects within the WTO.
  • Secondly, does the negative mandate solely pertain to launching negotiations on new issues in a multilateral context?
    • The inquiry arises as to whether this prohibition extends to negotiations commenced on a plurilateral basis.
    • The negotiations for an IFD agreement were instigated on a plurilateral, not multilateral, basis.
  • Although Article X.9 of the WTO Agreement stipulates that adding an agreement to the existing set of Plurilateral Agreements listed in Annex 4 necessitates consensus exclusively, the agreement lacks provisions mandating consensus for initiating negotiations for a Plurilateral Agreement.

Way forward:

  • As the primary regulatory body for international trade, the World Trade Organization (WTO) is responsible for updating existing rules and establishing new ones.
    • However, reaching a consensus on decision-making within the WTO remains a significant challenge, often leading to legislative deadlock.
  • In this context, Preferential Agreements (PAs), such as the proposed Investment Facilitation for Development (IFD) Agreement, can serve as catalysts for reinvigorating the WTO's legislative function.
    • By fostering cooperation among subsets of WTO members, Preferential Agreements (PAs) can help circumvent the challenges of consensus-building within the broader organization.
  • As India continues its ascent to become the world's third-largest economy, it is increasingly critical for the nation to reassess its defensive posture toward PAs.
    • By recognizing the potential benefits of agreements like the IFD, India has the opportunity to demonstrate leadership on the global stage, support the revitalization of the WTO's legislative function, and contribute to a more collaborative and effective approach to international trade regulation.

Conclusion

The failure to ratify the IFD agreement at MC13 underscores the formidable challenges encountered by the WTO in navigating intricate matters such as investment facilitation. It underscores the divergent perspectives among member nations regarding the scope and nature of the WTO's role in governing global economic interactions. Closing these divergences becomes imperative for the WTO to adeptly address the evolving landscape of international trade and investment

Employment Scenario in India Grim - ILO

  • 27 Mar 2024

Why is it in the News?

According to the India Employment Report 2024 by the ILO and IHD, nearly 83% of the unemployed workforce comprises youth, with the percentage of educated unemployed youth more than doubling from 35.2% in 2000 to 65.7% in 2022.

India Employment Report 2024:

  • The India Employment Report 2024, the third installment in the series of publications by the Institute for Human Development focusing on labor and employment concerns, is conducted in collaboration with the International Labour Organization (ILO).
  • This report delves into the issue of youth employment, analyzing the evolving economic, labor market, educational, and skills landscapes in India over the past twenty years.
  • It sheds light on recent trends in the Indian labor market, showcasing both positive advancements and enduring challenges, including those exacerbated by the COVID-19 pandemic.

Key Insights from the India Employment Report 2024:

  • Drawing from data sourced from National Sample Surveys and Periodic Labour Force Surveys spanning 2000 to 2022, the report offers a comprehensive analysis of employment trends and the present landscape.

Employment Trends & Current Scenario:

  • Female labor market participation, after a notable decline in previous years, exhibited accelerated growth post-2019, particularly in rural regions.
  • A noticeable trend in the Indian labor market is the gradual shift of the workforce from agriculture to non-farm sectors.
  • Self-employment and casual employment dominate India's employment landscape, with approximately 82% of the workforce engaged in the informal sector, and nearly 90% informally employed.
  • While wages for casual laborers saw modest growth from 2012 to 2022, real wages for regular workers stagnated or declined.
  • Official surveys inadequately capture migration levels in India, expected to significantly rise along with urbanization in the future, reaching around 40% migration rate and a 607 million urban population by 2030.

Challenges of Youth Employment:

  • Despite a sizable working-age population, India's youth demographic, accounting for 27% of the total population in 2021, is projected to decline to 23% by 2036.
  • Each year, approximately 7-8 million youths join the labor force, presenting an opportunity for India to capitalize on the demographic dividend.
  • Youth labor market participation has historically been lower than adults, primarily due to higher education enrollment rates.
  • Youth unemployment witnessed a notable increase from 5.7% in 2000 to 17.5% in 2019, declining to 12.1% in 2022 post-lockdowns.

Recommendations:

  • The report underscores five key policy domains for comprehensive action, focusing on both general employment enhancement and youth-specific interventions:
    • Promoting job creation
    • Enhancing employment quality
    • Addressing labor market disparities
    • Strengthening skills and active labor market policies
    • Bridging knowledge gaps on labor market dynamics and youth employment.

What is the International Labour Organization (ILO)?

  • The International Labour Organization (ILO) is a United Nations (U.N.) agency.
  • The goal of the ILO is to advance social and economic justice by setting international labor standards.
  • The ILO has 187 member states and is headquartered in Geneva, Switzerland, with approximately 40 field offices around the world.
  • The standards upheld by the ILO are broadly intended to ensure accessible, productive, and sustainable work worldwide in conditions of freedom, equity, security, and dignity.

Understanding the ILO

  • It was founded in 1919 under the League of Nations and incorporated into the U.N. as a specialized agency in 1946.
  • The ILO is the first and oldest specialized agency of the U.N.
  • The organization’s goal is to serve as a uniting force among governments, businesses, and workers.
  • It emphasizes the need for workers to enjoy conditions of freedom, equity, security, and human dignity through their employment.
  • The ILO promotes international labor standards through its field offices in Africa, Latin America, the Caribbean, the Arab States, Asia and the Pacific, and Europe and Central Asia.
  • The organization provides training on fair employment standards, offers technical cooperation for projects in partner countries, analyzes labor statistics and publishes related research, and regularly holds events and conferences to examine critical social and labor issues.
  • The ILO was awarded the Nobel Peace Prize in 1969.
    • The organization was recognized for improving fraternity and peace among nations, pursuing decent work and justice for workers, and providing technical assistance to developing nations.
  • The labor standards set forth by the ILO have been published in 190 conventions and six protocols.
  • These standards recognize the right to collective bargaining, attempt to eliminate forced or compulsory labor abolish child labor, and eliminate acts of discrimination concerning employment and occupation.
  •  As a result, the protocols and conventions of the ILO are a major contributor to international labor law.

Structure:

  • A unique feature of the ILO is its tripartite character.
  • The membership of the ILO ensures the growth of the tripartite system in the Member countries.
  • At every level in the Organization, Governments are associated with the two other social partners, namely the workers and employers.
  • All three groups are represented in almost all the deliberative organs of the ILO and share responsibility for conducting its work.
  • The work of the Conference and the Governing Body is supplemented by Regional Conferences, Regional Advisory Committees, Industrial and Analogous Committees, Committee of Experts, Panels of Consultants, Special Conference and meetings, etc.

The three organs of the ILO are:

  • International Labour Conferences: General Assembly of the ILO – Meets every year in June.
  • Governing Body: Executive Council of the ILO. Meets three times a year in March, June, and November.
  • International Labour Office:  A permanent secretariat.

India & ILO:

  • India is a founder member of the International Labour Organization, which came into existence in 1919.
  • At present the ILO has 187 Members.

About the Institute of Human Development (IHD):

  • Founded in 1998 under the patronage of the Indian Society of Labour Economics (ISLE), the Institute of Human Development (IHD) is dedicated to fostering a society that embraces an inclusive social, economic, and political framework, devoid of poverty and deprivation.
  • IHD's core mission revolves around conducting research in diverse domains such as labor and employment, livelihood, gender, health, education, and various facets of human development.
  • Through its endeavors, IHD seeks to generate knowledge and insights that contribute to the advancement of human welfare and societal well-being.

Navigating the Global Waterscape, and Its Challenges

  • 22 Mar 2024

Why is it in the News?

In the context of climate change-related pressures, the world also needs to foster improved cooperation over water-sharing.

Context:

  • The global water crisis remains a critical issue, with roughly two billion people lacking access to clean water, threatening individual and collective well-being.
  • Water has been a determining factor in civilizations' prosperity and decline throughout history.
  • Ancient Mesopotamian cities experienced conflicts over fertile land and water resources, illustrating the age-old struggle for water.
  • As the 31st World Water Day approaches in 2024, themed "Leveraging Water for Peace," the United Nations emphasizes the significance of water diplomacy to tackle contemporary water challenges and secure a sustainable future for all.

Water Diplomacy in a Time of Extremities:

  • Encouraging Collaborative Governance: Water diplomacy underscores the necessity of collaborative governance mechanisms to effectively tackle shared water challenges.
    • By uniting relevant stakeholders—governments, local communities, NGOs, and international agencies—collaborative governance frameworks foster dialogue, information exchange, and joint decision-making.
    • These mechanisms pave the way for sustainable water management policies and strategies that prioritize the needs and interests of all involved parties.
  • Ensuring Fair Water Allocation: At the core of water diplomacy lies the principle of equitable water allocation among riparian states.
    • Acknowledging that water resources transcend political boundaries, water diplomacy advocates for fair distribution, considering the needs, rights, and vulnerabilities of all stakeholders.
    • Through negotiated agreements and treaties, riparian states can establish frameworks for sharing water resources, managing competing demands, and peacefully resolving disputes.
  • Promoting Regional Stability and Peace: Effective water diplomacy contributes to regional stability and peace by mitigating conflicts over shared water resources.
    • By fostering cooperation and understanding among neighboring states, water diplomacy builds trust, enhances security, and reduces tensions stemming from water-related disputes.
    • Additionally, collaborative water management initiatives foster cross-border cooperation, economic integration, and diplomatic relations, bolstering broader efforts to uphold peace and stability in conflict-prone regions.
  • Embracing Inclusive Approaches: Inclusive water diplomacy involves engaging a diverse array of stakeholders, including indigenous communities, civil society organizations, academia, and the private sector.
    • Recognizing the importance of marginalized groups' contributions and perspectives, inclusive approaches promote social equity and transparency in decision-making processes.
    • By integrating local knowledge, cultural practices, and community priorities, inclusive water diplomacy enhances the legitimacy and efficacy of governance frameworks.
  • Preventing and Resolving Conflicts: Water diplomacy plays a pivotal role in preventing and resolving conflicts arising from competing water interests.
    • Through proactive diplomacy, early warning systems, and confidence-building measures, riparian states can address potential sources of tension and defuse conflicts before they escalate.
    • Moreover, mechanisms for peaceful dispute resolution, such as arbitration and mediation, enable states to resolve water-related disputes through dialogue and negotiation, averting coercive or confrontational measures.

Strategic Approaches for Tackling Rural Water Challenges in India:

  • Enhancing Infrastructure: A primary strategy involves developing water infrastructure like wells, hand pumps, boreholes, and piped systems to improve access to safe water and sanitation facilities in rural areas.
    • Investment in constructing and maintaining such infrastructure can reduce waterborne diseases, leading to better health outcomes.
  • Encouraging Community Engagement: Engaging local communities in planning, implementing, and managing water projects is crucial for their sustainability and success.
    • Empowering rural residents through participatory water management committees and user associations can promote ownership of water resources, efficient practices, and conflict resolution.
  • Conservation and Management Practices: Promoting conservation and management practices is vital for maximizing water efficiency in rural areas.
    • Techniques like rainwater harvesting, groundwater recharge, watershed management, and soil moisture conservation can reduce reliance on unpredictable water sources and build climate resilience.
  • Incorporating Technological Innovations: Leveraging technology can significantly improve water access and management in rural areas.
    • Solar-powered pumps, drip irrigation systems, and water-efficient technologies can enhance agricultural productivity, while monitoring applications and remote sensing can enable real-time resource management.
  • Policy Support and Interventions: Government support is essential in addressing rural water needs through adequate funding, regulatory frameworks for equitable water distribution, and legislation to protect water resources and promote sustainable practices.
    • Policy coherence across the agriculture, health, and environment sectors is crucial for tackling the interconnectedness of water, food security, and rural development.

Addressing Transboundary Water Challenges:

  • Highlighting the Significance of Transboundary Waters: The report underscores the prominence of transboundary waters, noting that a substantial portion of the world's freshwater resources, including those in India, are shared across borders.
    • India's extensive landmass boasts a network of long rivers, vital not only for its own needs but also shared with neighboring countries.
    • However, the South Asian region has witnessed a significant deterioration in water quality in recent years, particularly in rivers like the Meghna, Brahmaputra, Ganga, and Indus, as highlighted in the 2024 report.
  • The Need for Sophisticated Cross-Border Water Governance: Addressing these challenges requires a sophisticated approach to cross-border water governance, promoting effective and equitable allocation of water resources among nations that share them.
    • It is imperative to develop robust mechanisms for cooperation and coordination to manage shared waters sustainably.
  • Global Perspective on Transboundary Cooperation: According to a 2021 UNESCO progress report on Sustainable Development Goal indicator 6.5.2, titled "Progress on transboundary water cooperation," out of UNESCO's 194 member states and 12 associate members, 153 countries are classified as water-sharing nations.
    • Remarkably, transboundary waters account for 60% of the world's freshwater flows.
    • However, only 24 of these 153 countries have achieved a 100% cooperation agreement on their shared waters, indicating the pressing need for enhanced collaboration.
  • Ensuring Collective Well-being and Peace: While significant progress has been made in fostering peace over time, the scarcity of freshwater poses a threat to our collective well-being and peace.
    • This issue is not only crucial for achieving the 2030 Agenda and Sustainable Development Goals (SDGs) but also for maintaining stability and harmony among nations.
    • Effective transboundary cooperation in the sustainable management of water resources is essential to realize benefits across various sectors, including health, food and energy security, disaster resilience, education, improved standards of living, employment, economic development, and the preservation of ecosystem services.

Conclusion

As the global struggle for clean water access continues for approximately two billion people, the ever-increasing demand for this precious resource directly impacts our collective well-being and peace. In order to build a sustainable future, we must prioritize water conservation efforts that transcend political boundaries, fostering regional cooperation and stability. By recognizing the urgency of this challenge, we can work together to ensure a secure and equitable water supply for generations to come.

Inter-Ministerial Joint Workshop on “Blue Economy”

  • 23 Mar 2024

Why is it in the News?

Recently, the Ministry of Earth Sciences (MoES) organized a consultative workshop in New Delhi today on the Blue Economy Pathways study report status.

Context:

  • The Ministry of Earth Sciences (MoES) has collaborated with the World Bank to conduct a technical study and compile a report titled 'India’s Blue Economy: Pathways for resource-efficient, inclusive, and resilient growth in India.'
  • This report aims to explore global best practices in Blue Economy implementation, develop an ocean accounting framework, enhance institutional capacity, and propose innovative finance mechanisms in alignment with India's Blue Economy Policy framework.

What is the Blue Economy?

  • The blue economy, or the ocean economy, is a term used to describe the economic activities associated with the oceans and seas.
  • The World Bank? defines the blue economy as the “sustainable use of ocean resources to benefit economies, livelihoods, and ocean ecosystem health”.
  • The activities? commonly understood to represent the blue economy include maritime shipping, fishing and aquaculture, coastal tourism, renewable energy, water desalination, undersea cabling, seabed extractive industries and deep sea mining, marine genetic resources, and biotechnology.
  • The blue economy is estimated to be worth more than US$1.5 trillion? per year globally.
  • It provides over 30 million jobs and supplies a vital source of protein to over three billion people.

How do the Oceans Contribute to Sustainable Development?

  • There is a Sustainable Development Goal (SDG) dedicated to oceans: number 14, ‘Life Below Water?’ aims to conserve and sustainably use the oceans, seas, and marine resources.
  • It sets out seven targets for a sustainable ocean economy by 2030. So far, progress toward reaching these goals has been limited?.
  • There have been some small improvements in the sustainability of fisheries and an expansion of Marine Protected Areas (MPAs), but these cover only around 7.5% of the oceans.

How are the Oceans Governed?

  • Governance of the ocean and the blue economy is both complex and potentially difficult to implement, which has led to fragmented approaches to the sharing of marine resources between nations and impeded understanding of the environmental impacts of the blue economy.
  • Ocean-related regulations apply to Exclusive Economic Zones (EEZs), which include territorial waters, archipelagos, and the area of sea that extends 200 nautical miles out from countries’ coastlines.
  • The remaining area is called the High Seas? (or ‘open ocean’) and accounts for 64% of the world’s oceans.

Importance of the Blue Economy:

  • Economic Prosperity: The Blue Economy offers substantial avenues for economic advancement across various sectors including fisheries, aquaculture, tourism, maritime transport, renewable energy, and biotechnology.
  • Sustainable Resource Management: It advocates for the responsible and sustainable utilization of marine resources such as fish stocks, minerals, and energy sources, ensuring their availability for present and future generations.
  • Renewable Energy Development: By fostering the exploration of renewable energy sources like offshore wind, wave, and tidal energy, the Blue Economy reduces reliance on fossil fuels, thereby combating climate change.
  • Tourism Boost: Coastal and marine tourism serves as a cornerstone of the Blue Economy, stimulating revenue generation, and job creation, and bolstering local economies in coastal areas.
  • Climate Change Mitigation: Healthy oceans play a pivotal role in regulating the planet's climate.
    • Through conservation efforts and sustainable practices, the Blue Economy aids in mitigating climate change impacts by preserving coastal ecosystems and reducing carbon emissions.
  • Biodiversity Protection: Through the promotion of sustainable practices and responsible resource management, the Blue Economy contributes to the conservation of marine biodiversity, safeguarding endangered species and habitats.

Challenges Facing the Blue Economy:

  • Pollution and Environmental Degradation: India's coastal regions confront significant pollution stemming from industrial discharge, untreated sewage, agricultural runoff, and plastic waste.
    • This pollution adversely impacts marine ecosystems, biodiversity, and the long-term sustainability of marine industries.
  • Overexploitation of Marine Resources: Illegal, unreported, and unregulated (IUU) fishing practices exacerbate resource depletion, leading to diminished fish stocks and jeopardizing the livelihoods of coastal communities.
  • Climate Change Impacts: The effects of climate change, such as rising sea levels, ocean acidification, and alterations in oceanic conditions, pose threats to fisheries, aquaculture, coastal infrastructure, and marine biodiversity.
  • Maritime Security Challenges: India's maritime security faces multifaceted challenges including piracy, illegal trafficking, maritime terrorism, and territorial disputes, necessitating robust security measures.
  • Limited Institutional Capacity and Infrastructure: Effective management and sustainable development of the blue economy require robust institutional frameworks, governance mechanisms, and infrastructure.
    • However, India grapples with capacity constraints, inadequate funding, bureaucratic inefficiencies, and regulatory gaps, hindering optimal resource management and development.

India's Blue Economy:

  • India's Blue Economy, encompassing its vast coastline and Exclusive Economic Zone (EEZ), holds immense potential for driving sustainable growth and development.
  • With a coastline stretching 7,517 km and an EEZ covering over two million square kilometers, India is endowed with abundant living and non-living resources.
  • Although currently contributing approximately 4% to the nation's GDP, India's Blue Economy is projected to experience significant expansion with improved mechanisms and infrastructure.
    • Furthermore, the coastal economy plays a crucial role in sustaining the livelihoods of over four million fisherfolk and other coastal communities.

Four key industries are poised to propel India's Blue Economy forward:

  • Fishing: Leveraging the rich marine resources to enhance fisheries production and promote sustainable fishing practices.
  • Aquaculture: Developing innovative techniques to foster the cultivation of aquatic organisms, contributing to food security and livelihood opportunities.
  • Ports: Investing in port infrastructure and capacity building to facilitate maritime trade, cargo handling, and logistics efficiency.
  • Shipping: Strengthening the shipping industry to support global commerce, transportation, and connectivity while ensuring environmental sustainability

Government Initiatives Promoting Blue Economy:

  • Sagarmala Programme: The Sagarmala Programme, a flagship initiative, focuses on modernizing India's ports, improving port connectivity, and driving port-led development.
    • It prioritizes logistics optimization, coastal shipping promotion, and the establishment of coastal economic zones to stimulate economic expansion and employment generation.
  • National Policy Framework: The government has devised a comprehensive National Policy Framework for the Blue Economy, outlining a strategic path for the sustainable development and management of marine resources.
    • It aims to integrate sectors like fisheries, aquaculture, shipping, tourism, and renewable energy to foster holistic growth.
  • National Marine Fisheries Action Plan (NMFAP): This plan encompasses strategies to enhance fishery resources assessment, upgrade infrastructure and technology in the fisheries sector, and encourage aquaculture development.
  • Integrated Coastal Zone Management (ICZM): The government has initiated the Integrated Coastal Zone Management Program to foster sustainable development and conservation of coastal ecosystems.
  • Blue Economy Cell: The Ministry of Earth Sciences has instituted a dedicated Blue Economy Cell to streamline research, policy formulation, and implementation of Blue Economy endeavors.
  • Marine Spatial Planning (MSP): India is actively developing Marine Spatial Planning frameworks to ensure the efficient and sustainable utilization of marine space.

Conclusion

India's Blue Economy is on the brink of substantial expansion in the coming years.

With the government's proactive Blue Economy Mission, there's potential for this sector to emerge as a key economic driver, contingent upon effective policy implementation.

Aligned with the government's broader vision outlined in the 'Vision of New India by 2030', the Blue Economy policies are geared towards securing enduring economic benefits, fostering job creation, promoting equity, and safeguarding environmental sustainability.

India's Bhutan Policy: Balancing Regional Allies in the Shadow of Dragon

  • 21 Mar 2024

Why is it in the News?

India and Bhutan decided on Wednesday to postpone a state visit by Prime Minister Narendra Modi to Thimphu this week because of bad weather.

Context:

  • The planned visit to Bhutan on 21-22 March by the Indian prime minister however had to be postponed due to inclement weather conditions over Paro airport.
  • Notwithstanding the sudden intervention by nature, the visit which was otherwise planned amid an electioneering time, showcases the importance that New Delhi is imparting to an important friend and neighbour.
  • The importance of Bhutan for India can be immediately gauged from the manner in which China is seeking to woo its southern neighbour away from the ambit of Indian influence.

Background of India-Bhutan Relations:

  • India and Bhutan have maintained a special bilateral relationship based on mutual trust, goodwill, and understanding.
    • This unique partnership is founded upon the Treaty of Friendship and Cooperation, first signed in 1949 and subsequently renewed in 2007.
    • The treaty has provided a strong framework for the two nations to develop close political, economic, and cultural ties.
  • A significant aspect of the enduring bond between India and Bhutan lies in their spiritual kinship.
    • Bhutan regards India as the "gyagar," acknowledging its role as the sacred birthplace of Buddhism.
    • This deep cultural and religious connection has helped foster resilience and camaraderie between the two nations, further cementing their historical friendship.

Why does Bhutan Hold Significant Importance for India?

  • India and Bhutan have maintained strong bilateral relations rooted in shared cultural heritage, political cooperation, economic ties, and social connections.

Cultural Bonds:

  • Buddhist Heritage: With India being the birthplace of Lord Buddha, Bhutanese monks frequently visit significant Buddhist sites such as Nalanda, Bodh Gaya, and Rajgir, fostering spiritual connections.
  • Open Border Policy: The open border encourages regular exchanges of travellers for work, tourism, shopping, and medical care, further strengthening cultural ties.

Political Cooperation:

  • High-Level Visits: Frequent political exchanges at the ministerial level, including visits by the Indian Prime Minister and the King of Bhutan, sustain and strengthen bilateral relations.
  • Doklam Crisis: During the 2017 crisis, Bhutan granted access to Indian army personnel to resist Chinese incursions, demonstrating mutual trust and cooperation.
  • Civilian Award: Bhutan conferred its highest civilian award on Indian Prime Minister Narendra Modi in 2021, recognizing his contributions to the friendship between the two nations.

Economic Partnerships:

  • Financial Assistance: India has provided financial aid to Bhutan since the 1960s, supporting its five-year plans, for agriculture, irrigation, health, industrial development, road transport, energy, and education.
  • Trade and Commerce: The 1972 Agreement on Trade and Commerce, revised in 2016, promotes free trade, with India being Bhutan's largest trading partner, exceeding $1422 million in bilateral trade in 2021-22.
  • Vaccine Maitri Initiative: Bhutan was the first country to receive Indian-made Covishield vaccines, with 550,000 doses gifted during the COVID-19 pandemic.
  • Hydropower Collaboration: A vital cooperation area generating significant revenue, hydroelectric projects are covered under a 2006 bilateral agreement, with four operational projects supplying 2136 MW of electricity to India and two more under construction.

Social Connections:

  • Education: Approximately 1,000 scholarships are provided annually to Bhutanese students in Indian universities for engineering and medicine, fostering knowledge exchange.
  • Indian Diaspora: 50,000 Indians working in Bhutan contribute to fields such as education, arts, and health.

Environmental Importance:

  • Carbon-Neutral Commitment: As one of the few countries committed to carbon neutrality, Bhutan has found a key partner in India to achieve this goal through renewable energy, forest conservation, and sustainable tourism initiatives.

New Cooperation Areas:

  • Space: Joint development of the India-Bhutan SAT small satellite aims to help manage Bhutan's natural resources, promoting scientific collaboration.
  • Fintech: Launching the RuPay Card enables full interoperability, with Bhutan as the second country to launch India's BHIM app for cashless payments.
  • E-learning: Integrating Bhutan's DrukRen with India's National Knowledge Network facilitates information access for universities and research institutions in both countries, fostering educational cooperation.

What are the Challenges in India-Bhutan Relations?

  • Despite their close ties, India-Bhutan relations face several challenges that must be addressed to maintain a strong partnership.

China's Growing Influence:

  • Chinese Presence: China's increasing influence in Bhutan, particularly near the disputed Bhutan-China border, has raised concerns in India, traditionally Bhutan's closest ally.
    • While Bhutan and China have not established diplomatic relations, their friendly exchanges can potentially shift the balance of power in the region.

Border Disputes:

  • Incidents of Incursions: While the 699 km India-Bhutan border has been largely peaceful, recent incursions by Chinese forces have created flashpoints, such as the 2017 Doklam standoff in the India-China-Bhutan tri-junction.
    • Any escalation of these border disputes could strain India-Bhutan relations and challenge their traditional security cooperation.

Hydropower Projects:

  • Bhutan's hydropower sector is a key economic pillar, with India playing a significant role in its development.
    • However, some Bhutanese have expressed concerns over the perceived disproportionate benefits for India.
    • These concerns have led to public opposition in Bhutan against Indian involvement in the sector, which could impact bilateral relations.

Trade Issues:

  • Trade Imbalance: India accounts for over 80% of Bhutan's imports and exports, raising concerns about the significant trade deficit.
    • Bhutan seeks greater access to the Indian market for its products to reduce the trade deficit, which could require further negotiation and collaboration between the two countries.
  • To navigate these challenges, both India and Bhutan must address these concerns through open dialogue, strategic cooperation, and mutually beneficial agreements to maintain their strong and enduring partnership.

Strategies for Strengthening Indo-Bhutan Relations:

  • To further enhance the bilateral ties between India and Bhutan, several approaches can be adopted to address potential challenges and promote mutual growth such as:
  • Diplomatic Engagement: India should regularly discuss with Bhutan to comprehend its evolving foreign policy objectives and concerns.
    • Continual support for Bhutan's sovereignty and development needs is vital to allay any apprehensions of India as a threat.
  • Expanded Economic Assistance: India can provide increased economic aid, trade advantages, and infrastructural development to shield Bhutan from succumbing to China's debt-trap tactics.
  • Fortifying Defense Collaboration: India should address existing impediments in the relationship and reinforce defence and security cooperation with Bhutan to ensure mutual safety and counter potential Chinese influence effectively.
  • Promoting Regional Cooperation: India and Bhutan are members of various regional organizations like SAARC, BIMSTEC, and BBIN.
    • Strengthening regional cooperation mechanisms will ensure Bhutan's interests are adequately represented in these forums, enhancing overall regional stability and prosperity.

Conclusion

Bhutan is perhaps one of the most important allies that India has in its neighbourhood. Time has proven its relationship with India. However, recent times have witnessed changing dynamics in the Himalayan kingdom’s polity. Focusing on diplomatic engagement, bolstering economic support, strengthening military ties, and fostering regional cooperation will pave the way for a prosperous and secure future. Also, corrective and course-correction measures that are being undertaken by India to implement its Neighbourhood First policy are laudable.

Key Facts about Bhutan:

  • Geography: Nestled between India and China, Bhutan is a landlocked country characterized by majestic mountains and verdant valleys.
    • Thimphu is the capital city of Bhutan.
  • Political System: Bhutan transitioned to democracy in 2008, following its inaugural democratic elections. The King of Bhutan serves as the Head of State.
  • Official Name: Referred to as the 'Kingdom of Bhutan', its Bhutanese name is Druk Gyal Khap, translating to the 'Land of the Thunder Dragon'.
  • River: The Manas River, stretching over 376 km, holds the title of Bhutan's longest river. It flows through the Himalayan foothills, forming a transboundary river between southern Bhutan and India.
  • Government system: Bhutan follows a parliamentary monarchy system.
  • Borders: Bhutan shares borders with only two countries: India and Tibet (an autonomous region of China).

Addressing the Persistent Issue of Gender Pay Disparity

  • 20 Mar 2024

Why is it in the News?

A recent World Bank Group report highlighted that women globally earn only 77 cents for every dollar earned by men, underscoring the persistent gender pay gap where women, on average, earn less than men.

Context:

  • The World Bank Group's recent report sheds light on the persistent issue of the gender pay gap, revealing that women globally earn only 77 cents for every dollar their male counterparts earn.
  • This disparity has been a contention, with critics sometimes questioning its existence.
    • However, the International Labour Organisation regards the gender pay gap as a tangible indicator of inequality between men and women.
  • While various reports present different figures, it is crucial to acknowledge the underlying factors that contribute to this gap and work towards eradicating them to achieve equitable pay for all individuals, regardless of gender.

How is the Gender Pay Gap Calculated?

  • The International Labour Organization (ILO) defines the gender pay gap as the difference between the average wage levels of all working women and men in the labor market, whether they are paid a monthly salary, hourly wage, or daily wage.
    • It is crucial to note that this gap does not exclusively represent the wage disparity between men and women with similar qualifications and job responsibilities.
    • Rather, it encompasses the overall earnings difference between all working women and men.
  • While the concept of "equal pay for equal work" advocates for equitable compensation for men and women with the same qualifications and job duties, the gender pay gap reflects broader income disparities.
  • There is no single, universally agreed-upon method for calculating the gender pay gap.
    • Different organizations and studies may produce varying figures due to their distinct approaches.
  • Understanding the various factors contributing to the gender pay gap and addressing them through appropriate policies and initiatives is vital for achieving gender equality in the workforce and ensuring fair compensation for all workers.

Methodological Differences and the Persistence of the Gender Pay Gap:

  • The variation in reported gender pay gaps can be attributed to the distinct methodologies employed by different organizations and studies.
    • For instance, Pew Research used hourly wages to calculate the disparity. At the same time, the US Bureau of Labor Statistics utilized weekly wages, considering only full-time workers, defined as those working at least 35 hours per week.
    • Such differences in approach can lead to varying estimates of the gender pay gap.
  • Despite these discrepancies in methodology, it is essential to recognize that the gender pay gap is a persistent issue in most countries and industries.
    • While the extent of the gap may differ across studies, the underlying reality is that income disparities between men and women continue to be a prevalent challenge.

What are the Root Causes of the Gender Pay Disparity?

  • The gender pay gap can be attributed to several interconnected factors that perpetuate income inequality between men and women.
  • Firstly, women's lower labor force participation rate is influenced by prevailing gender stereotypes and societal expectations about gender roles.
    • The International Labour Organization (ILO) reveals that the global labor force participation rate for women stands at just under 47%, compared to 72% for men.
    • In India, the 2011 Census reported a workforce participation rate of 25.51% for women, against 53.26% for men.
  • Secondly, even when women join the workforce, they are often concentrated in lower-paying sectors or job roles.
    • The ILO's Women in Business and Management report found that fewer women occupy management and leadership positions, particularly at higher levels.
    • They are more likely to work in support functions such as human resources and financial administration, leading to a lower average salary compared to male managers.
  • A Georgetown University survey in 2013 further highlighted that the top 10 highest-paying professions, primarily in engineering and computer science, were dominated by men, while women were overrepresented in the 10 lowest-paying professions, such as arts and education.
  • Additionally, women are more likely to work part-time due to limited full-time employment opportunities and family responsibilities.
    • In 73 countries, based on 2018 data, women outnumbered men as part-time workers.
    • The ILO explains that part-time work often lacks proportional benefits to full-time positions, impacting women's overall remuneration over time.
  • Other institutional and socioeconomic factors, such as the traditional view of men as breadwinners, lower investments in women's education, and concerns over safety in commuting and the workplace, also contribute to the gender pay gap.
  • Addressing these underlying issues and promoting gender equity in the workforce is essential to bridging the gender pay gap and achieving fair compensation for all individuals.

Understanding the Implications of the Gender Pay Gap:

  • Analyzing the gender pay gap through various demographic factors reveals patterns that provide valuable insights into income disparities between men and women.
    • For example, women in their mid-30s and 40s often experience a decline in earnings compared to men in similar positions and professions.
  • Critiques of the 77% statistic argue that it overlooks the "motherhood penalty," where unmarried women earn 95 cents or more for every dollar a man makes.
    • This penalty suggests that women face career growth setbacks when they take breaks to raise children, highlighting an area requiring attention to promote equal opportunities.
  • The 2023 Sveriges Riksbank Prize in Economic Sciences winner, Claudia Goldin, extensively researched pay equality and argued that traditional gender roles force men to "step up" in their careers while women "step back" for family responsibilities.
    • This dynamic ultimately disadvantages both genders, as men miss out on family time, and women sacrifice their careers.
  • Efforts to close the gender pay gap, such as implementing maternity and paternity leave policies and flexible work arrangements, have shown promise in reducing income disparities.
  • However, the pace of progress varies, emphasizing the need for continued attention and innovation in promoting equal opportunities for all workers.

Conclusion

The gender pay gap continues to pose significant challenges across nations and industries. Examining demographics and career stages reveals important patterns that underline disparities between men's and women's earnings. Addressing inequalities, such as the "motherhood penalty," and transforming traditional work structures are vital for achieving equal opportunities. While policies like parental leave and flexible work arrangements have shown promise, sustained commitment to innovation and reform is crucial for fostering lasting progress and a more equitable professional environment.

The Role of NFHS Data in Formulating Policies for Women's Financial Inclusion

  • 19 Mar 2024

Why is it in the News?

Financial inclusion awareness programmes must give special attention to women in households not headed by women.

Context:

  • Financial inclusion is a key driver for realizing a more sustainable and inclusive future, as it directly influences the achievement of eight out of the 17 United Nations' Sustainable Development Goals (SDGs).
  • Despite its importance, inequalities continue to exist, with India's subpar performance in the Global Gender Gap Report 2023 underscoring significant gaps in the economic realm.
  • To address these disparities, particularly for women in India, it is vital to conduct a comprehensive evaluation of the complex aspects of financial inclusion.
  • Insights can be drawn from multiple sources such as the World Bank's Global Findex Database and the National Family Health Survey (NFHS), ultimately paving the way for targeted interventions and improved financial access for all.

What is Financial Inclusion?

  • Financial inclusion is a method of offering banking and financial services to individuals.
  • It aims to include everybody in society by giving them basic financial services regardless of their income or savings.
  • It focuses on providing financial solutions to the economically underprivileged.
  • The term is broadly used to describe the provision of savings and loan services to the poor in an inexpensive and easy-to-use form.
  • It aims to ensure that the poor and marginalized make the best use of their money and attain financial education.
  • With advances in financial technology and digital transactions, more and more startups are now making financial inclusion simpler to achieve.

The Role of Financial Inclusion in Advancing Women's Empowerment:

  • Financial inclusion not only facilitates women's access to bank accounts but also drives broader economic participation and empowerment.
  • By offering women avenues for savings, credit, and investment, financial inclusion empowers them to manage risks, build assets, and seize socio-economic opportunities.
  • In doing so, it bolsters women's resilience to economic uncertainties, fosters greater household welfare, and promotes economic stability, thereby illustrating its pivotal role in driving gender equity and sustainable development.

Insights from NFHS Data on Women's Financial Inclusion Progress:

  • The NFHS data offers a comprehensive understanding of the multi-faceted dimensions of financial inclusion among women in India.
  • Over the past two decades, several indicators point towards a significant improvement in women's economic empowerment and access to financial services including:

Financial Autonomy and Decision-making:

  • A notable aspect highlighted by the NFHS surveys is the increasing financial autonomy among women.
  • There has been a marked shift towards greater control over financial resources, with more women possessing self-operated bank accounts and playing an active role in financial decision-making within their households.
  • This trend signifies a positive step towards women's economic independence, contributing to their overall empowerment and well-being.

Awareness and Utilization of Micro-Credit Programs:

  • Micro-credit schemes have emerged as a key facilitator of financial assistance for women entrepreneurs and small business owners in rural India.
  • The NFHS data indicates a growing awareness of these programs among women, with an increasing number utilizing micro-credit facilities to support their economic activities.
  • This underscores the importance of targeted interventions and support mechanisms in promoting women's access to formal credit sources, fostering entrepreneurship, and generating income at the grassroots level.

Access and Utilization of Formal Banking Services:

  • An analysis of factors such as education, occupation, and household characteristics reveals key determinants of women's financial inclusion.
  • The NFHS data emphasizes the pivotal role of education in enabling women's awareness and utilization of financial services.
  • Similarly, occupation and access to electronic media also significantly influence women's access to formal banking channels and digital financial tools.
  • These insights underscore the need for targeted interventions and policy measures to address disparities and barriers, ensuring inclusive financial access, particularly among marginalized and vulnerable groups of women.

Advances in Global Financial Inclusion and India:

  • Financial inclusion has become a key enabler of economic growth and development worldwide, with India demonstrating substantial progress in this arena.
  • According to the World Bank's Global Findex Database, there has been a significant increase in adult ownership of bank accounts globally between 2011 and 2020.
  • India's commendable growth of 42 percentage points during this period exemplifies the success of targeted interventions promoting financial access, particularly for marginalized communities such as women.
  • This upward trend emphasizes the importance of continued efforts in fostering inclusive financial systems to ensure sustainable development and shared prosperity.

The Influence of Government Initiatives on Financial Inclusion:

  • India's commitment to advancing financial inclusion has resulted in substantial progress, particularly in reducing the gender gap in account ownership.
    • The introduction of the Pradhan Mantri Jan Dhan Yojana (PMJDY) in 2014 played a pivotal role in this achievement, offering universal access to banking services, including savings accounts, remittances, and overdrafts to underserved communities such as women in rural and urban areas.
    • By January 2024, PMJDY had facilitated the opening over 28 crore accounts for women, significantly contributing to bridging the gender gap in financial access.
  • Furthermore, government initiatives like the Deendayal Antyodaya Yojana and the National Rural Livelihood Mission (DAY-NRLM) have been instrumental in fostering women's economic empowerment and participation in the formal financial sector.
    • These schemes provide opportunities for skill development, entrepreneurship training, and access to credit, enabling women to establish and sustain livelihoods.
  • In addition, social protection programs such as the Pradhan Mantri Awas Yojana and Pradhan Mantri Matru Vandana Yojana offer financial assistance and support during critical life stages such as pregnancy and homeownership.
    • Collectively, these initiatives have played a vital role in promoting women's economic independence and overall well-being, underscoring the importance of continued efforts towards inclusive financial systems.

Challenges and Way Forward:

  • While significant progress has been made in advancing financial inclusion, several challenges remain, requiring concerted efforts and multi-stakeholder collaboration to address. Key areas of focus include:
  • Enhancing Financial Literacy: Despite the expansion of banking services, a significant proportion of the population, particularly in rural and marginalized communities, lack adequate knowledge and understanding of financial products and services.
    • By promoting targeted education and awareness campaigns, we can empower individuals to make informed financial decisions and fully utilize available resources.
  • Bridging the Digital Divide: The potential of digital financial services to enhance access and convenience is immense.
    • However, disparities in internet connectivity, smartphone ownership, and digital literacy create barriers to their effectiveness.
    • Expanding digital infrastructure and promoting digital literacy initiatives are critical to ensuring equitable access to digital financial services for all segments of society.
  • Promoting Inclusivity of Marginalized Communities: Systemic barriers continue to hinder the meaningful participation of marginalized communities, including women, minorities, and persons with disabilities in the financial ecosystem.
    • These barriers are multifaceted, encompassing social, cultural, and economic factors.
    • To overcome these challenges, tailored interventions and affirmative action programs are necessary, fostering an enabling environment that promotes their inclusion and empowerment.
  • Advancing through Collaboration: A collaborative approach involving multiple stakeholders, including government agencies, financial institutions, civil society organizations, and grassroots initiatives, is indispensable in advancing financial inclusion.
    • By coordinating efforts, leveraging resources, and implementing holistic solutions, we can collectively navigate the path ahead, overcoming challenges, and ensuring inclusive and sustainable financial systems for all.

Conclusion

Advancing financial inclusion for women in India is essential for fostering inclusive growth and sustainable development. While initiatives like PMJDY and DAY-NRLM have made significant strides, concerted action is necessary to tackle remaining disparities and fully leverage women's economic potential. By emphasizing education, digital literacy, and tailored awareness initiatives, India can unlock fresh opportunities for women's economic empowerment, thereby advancing the agenda of inclusive growth and prosperity.

Many elections, AI’s dark dimension

  • 18 Mar 2024

Why is it in the News?

With a series of elections to be held across the world in 2024, the potential of AI to disrupt democracies cannot be dismissed.

Context:

  • The rapid advancement of Artificial Intelligence (AI) marks a significant turning point in human history.
  • With the rise of Generative AI (GAI), the possibility of achieving Artificial General Intelligence (AGI) becomes increasingly feasible, raising questions about its potential to mimic human abilities.
  • Thus, exploring AI's profound influence on human life, particularly within electoral contexts and broader societal realms, is imperative.

What is Generative AI (GAI)?

  • Generative AI, short for Generative Artificial Intelligence, represents a branch of artificial intelligence focused on creating new content rather than simply processing or analyzing existing data.
    • Unlike traditional AI systems, which are designed to recognize patterns or make predictions based on historical data, generative AI models have the capability to generate new data that resembles real-world examples.
  • These models work by learning patterns and structures from large datasets and then using that knowledge to create new content.
    • They can produce various types of content, including images, text, audio, and even video.
      • For example, a generative AI model trained on a dataset of human faces can generate realistic-looking images of faces that have never existed before.
  • One of the key technologies behind generative AI is deep learning, particularly a type of neural network called a generative adversarial network (GAN).
    • In a GAN, two neural networks are pitted against each other: a generator and a discriminator.
    • The generator creates new data samples, while the discriminator tries to distinguish between real and fake data.
    • Through this adversarial process, the generator learns to produce increasingly realistic content.
  • Generative AI has a wide range of applications across various industries.
    • In the field of art and design, it can be used to generate new artwork, music, or even fashion designs.
    • In entertainment, it can create realistic characters and environments for video games and movies.
    • In healthcare, it can generate synthetic medical images for training diagnostic algorithms.
  • However, the technology also raises ethical concerns, such as the potential for misuse, copyright issues, and the creation of fake content.

The Role of Artificial Intelligence (AI) in Shaping Electoral Landscapes:

  • A Transformative Influence- AI's Ascendancy in Politics: The integration of artificial intelligence (AI) into electoral processes represents a profound transformation in global political dynamics.
    • As nations gear up for elections, the incorporation of AI technologies introduces new variables that require a reassessment of conventional campaign methodologies and voter outreach strategies.
    • In the context of upcoming elections, including India's extensive seven-phase general election, AI emerges as a decisive factor influencing electoral trajectories.
    • The deployment of Generative AI, with its ability to conduct dynamic simulations and replicate real-world interactions, presents unprecedented opportunities and challenges for political stakeholders and the electorate.
  • Harnessing AI for Campaign Innovation and Voter Engagement: Political entities and candidates are leveraging AI-driven tools to analyze vast datasets, craft targeted messaging, and optimize campaign blueprints.
    • AI-powered predictive analytics empower parties to pinpoint swing voters, tailor messages to specific demographics, and deploy resources more precisely.
    • Additionally, AI-enabled sentiment analysis of social media platforms furnishes real-time insights into voter attitudes and emerging concerns, informing campaign narratives and responsiveness strategies.
    • Moreover, AI's impact extends beyond campaign frameworks to encompass voter engagement and mobilization endeavors.
    • Through AI-driven chatbots, personalized interactions with voters are facilitated, addressing inquiries, disseminating information, and fostering voter participation.

What are the Concerns Regarding AI's Impact on Electoral Integrity?

  • Challenges Posed by Deep Fakes: The expanding presence of AI within electoral arenas prompts apprehensions regarding its implications for democratic processes and the integrity of elections.
    • The emergence of 'Deep Fake' technology, capable of generating convincingly realistic yet fabricated audio, video, and textual materials, presents a formidable obstacle in identifying and combatting misinformation and disinformation campaigns.
    • Deep fakes produced by AI possess the capacity to deceive voters, manipulate public opinion, and erode trust in democratic institutions, thus distorting the integrity of electoral outcomes.
  • Impact on Public Discourse and Decision-making: Moreover, the utilization of AI-powered algorithms in social media platforms for content curation and recommendation purposes raises concerns regarding filter bubbles, echo chambers, and algorithmic bias.
    • These algorithms, driven by AI, may inadvertently amplify divisive content, perpetuate existing biases, and contribute to the segmentation of public discourse, consequently influencing voter perceptions and decision-making processes.

What are AI Influences its challenges, and Mitigation Strategies?

  • As artificial intelligence (AI) permeates various spheres of society, including electoral contexts, addressing the concept of AI influence becomes increasingly critical.
  • AI influence refers to the ability of AI-driven tactics to shape human behavior and decision-making processes, often without individuals' explicit awareness or consent.
  • Challenges in Addressing AI Influence: A primary challenge in addressing AI influence is mitigating its impact on electoral dynamics.
    • AI-powered algorithms can analyze extensive data sets to predict and influence voter behavior, potentially affecting electoral outcomes in ways that may not align with democratic principles or voter preferences.
    • To counter this, safeguards must be implemented to prevent undue AI-driven influence on electoral processes and outcomes.
  • Promoting Transparency and Accountability: Transparency and accountability are crucial in addressing AI influence.
    • Electoral authorities and policymakers should establish clear guidelines and regulations governing the use of AI in political campaigns and voter engagement efforts.
    • This includes mandates for disclosing the use of AI-driven algorithms, data sources, and methodologies in campaign strategies, enhancing public awareness and understanding of AI's role in elections.
  • Protecting Democratic Values: Efforts to combat AI influence should prioritize safeguarding democratic values and electoral integrity.
    • Measures must be implemented to detect and mitigate AI-driven manipulation, such as disinformation campaigns, deep fakes, and algorithmic bias.
    • Collaborative approaches involving electoral authorities, technology firms, civil society organizations, and academia are essential to develop effective tools and techniques for detecting and countering AI-driven threats to electoral integrity.
  • Empowering Voter Literacy: Promoting media literacy and digital literacy among voters is crucial for combating AI influence.
    • By equipping voters with the skills to critically evaluate information sources, distinguish fact from fiction, and identify manipulation tactics, individuals can resist the influence of AI-driven propaganda and make informed voting decisions.
    • Educational initiatives, public awareness campaigns, and media literacy programs are vital for enhancing voter resilience against AI-driven misinformation and manipulation.

Additional Measures for Ensuring Electoral Integrity:

  • Incorporating Ethical Guidelines into AI Governance: Furthermore, the ethical dimensions of AI governance should inform the development and application of AI technologies within electoral contexts.
    • Ethical AI governance frameworks should prioritize principles such as fairness, transparency, accountability, and adherence to democratic values.
    • This entails conducting comprehensive risk assessments, ensuring transparency and explainability in algorithms, and establishing mechanisms for independent oversight and accountability.
  • Adopting Proactive Strategies: Policymakers, electoral authorities, and civil society actors should embrace proactive strategies to uphold electoral integrity and democratic principles in the age of AI.
    • Implementing robust regulatory frameworks, transparency mandates, and oversight mechanisms is crucial for mitigating the risks associated with AI-driven manipulation and disinformation campaigns.
    • Furthermore, investments in digital literacy initiatives and media literacy programs can empower voters to critically assess information sources, distinguish between fact and fiction, and resist manipulation efforts.

Way Forward:

  • The risks associated with AI pose a substantial threat, surpassing concerns regarding biases in its design and development.
  • AI systems inherently tend to manifest adversarial traits, for which effective mitigation strategies have yet to be fully realized.
  • Beyond electoral implications, India's position as a digital frontrunner necessitates a cautious approach towards AI adoption, recognizing both its potential advantages and disruptive capabilities.
  • While AI offers numerous benefits, it is imperative for the nation and its leaders to acknowledge its potential for malevolence.
  • India's prominence in digital innovation presents both opportunities and challenges, as the advancement of AI, including AGI, brings both advantages and risks.
  • Addressing the complexities of AI policy requires amplifying democratic voices and resisting the tendency to cede policymaking authority to a select few tech conglomerates.

Conclusion

The emergence of AI marks a significant milestone in human evolution, impacting electoral dynamics and social harmony in profound ways. While AI offers remarkable progress, it demands careful oversight to minimize its disruptive effects and uphold democratic values. As we venture into the realm of AI, wise decision-making and forward-thinking are essential to steer toward a future characterized by ethical AI governance and conscientious innovation.

In issuing AI advisory, MEITY becomes a deity

  • 15 Mar 2024

Why is it in the News?

The Ministry of Electronics and Information Technology (MeitY) reportedly issued an advisory on 1 March 2024 (Advisory) to “intermediaries” and “platforms” hosting artificial Intelligence (AI) including generative AI-based models.

Context:

  • The Ministry of Electronics and Information Technology (MEITY), previously recognized as the Department of Electronics and IT (DEITY), has come under scrutiny regarding its endeavors to govern technology and the Internet.
  • It is imperative to examine MEITY's recent advisory regarding generative Artificial Intelligence (AI), exploring its legal foundation, uncertainties, and repercussions for technology regulation in India.

What is the Recent Advisory by MEITY on AI Regulation?

  • Regarding the Regulation of AI Technologies: The advisory urges tech firms to ensure that their AI models, including Large Language Models (LLMs) and Generative AI, prevent users from hosting or displaying unlawful content, addressing concerns about potential misuse.
  • Quality Assurance and Testing: It stresses the use of reliable and tested AI models while cautioning against deploying under-tested or unreliable ones without explicit permission from the Government of India, aiming to uphold quality standards and mitigate associated risks.
  • Advisory on Transparency and Accountability: The advisory highlights the importance of transparency and accountability in AI deployment, recommending appropriate labeling of AI models to acknowledge potential fallibility or unreliability, reflecting a broader commitment to ethical AI practices and user awareness of associated limitations and risks.

Analysis of Ambiguity Regarding the Legal Status of Government Advisory:

  • Lack of Statutory Authority: The uncertainty surrounding the legal status of MEITY's advisories is a key issue in assessing the government's regulatory power and its impact on stakeholders.
    • Unlike established regulatory bodies such as SEBI, MEITY lacks explicit statutory powers to issue binding directives or advisories.
    • This absence of a specific legal framework leads to interpretation challenges and questions about the enforceability of MEITY's directives.
  • Uncertainty on MEITY’s Advisory Power: The IT Act of 2000, which primarily governs technology regulation in India, does not grant MEITY the authority to issue advisories on emerging technologies like AI.
    • While the IT Act addresses electronic records, digital signatures, and cybersecurity, it does not specify MEITY's mandate to regulate AI or other technological advancements.
  • Lack of Defined Terms and References: The term "advisory" lacks a precise definition under the IT Act or other relevant legislation, allowing MEITY to issue directives that carry the weight of official recommendations without a clear legal foundation.
    • This ambiguity leaves stakeholders, including technology firms and legal experts, uncertain about the legal consequences of non-compliance with MEITY's advisories.
    • Furthermore, MEITY's advisories often lack explicit citations of legal authority or references to specific legislative provisions, contributing to perceptions of arbitrary regulatory actions.
  • Compliance Challenges: In the absence of clear penalties or enforcement mechanisms tied to MEITY's advisories, compliance becomes discretionary rather than obligatory.
    • This situation underscores the ambiguity surrounding the legal standing of MEITY's regulatory directives, raising concerns about accountability and procedural fairness in technology regulation.

Additional Concerns Regarding Government’s Advisory on AI:

  • Transparency Issues and Hasty Policymaking: MEITY's advisories, particularly those related to AI regulation, exhibit a pattern of expedited policymaking driven by media events, lacking thorough evaluation or stakeholder input.
    • Released with limited transparency, these advisories fail to provide comprehensive information, undermining the credibility of MEITY's regulatory decisions.
  • Ambiguous Terminology and Ministerial Clarifications: The recent AI advisory introduces vague terms like "bias prevention" and proposes an AI model licensing system without clear definitions or legal framework.
    • Ministerial clarifications on social media platforms add to the confusion, leaving terms undefined and enforcement mechanisms uncertain.
    • This ambiguity contributes to stakeholder uncertainty and undermines legal clarity.
  • The decline in Administrative Standards and Overreach: MEITY's reliance on advisory regulations marks a decline in administrative standards, sidestepping formal legislative processes and stakeholder consultations.
    • The extension of IT Rules, 2021, to regulate digital content further illustrates regulatory overreach.
    • Additionally, the influence of social media metrics on policy decisions reflects a departure from deliberative governance.
  • Threat to Freedom of Expression: MEITY's regulatory actions, including AI governance advisories and social media content moderation directives, risk infringing on online freedom of expression.
    • The vague and arbitrary nature of these directives may lead to self-censorship among individuals and organizations, fearing repercussions for expressing dissent or challenging government policies.
    • This suppression of free speech undermines democratic discourse and diversity in the digital realm.
  • Expansion of Surveillance and Control Measures: Digital authoritarianism often entails expanding state surveillance and control over online activities.
    • MEITY's regulatory efforts, such as implementing IT Rules, 2021, and proposing AI governance measures, could facilitate heightened government surveillance and online content censorship.
    • This erosion of digital privacy rights jeopardizes individual autonomy and fosters a climate of apprehension and self-censorship among internet users.
  • Impact on Innovation and Technological Advancement: MEITY's regulatory overreach and legal ambiguity pose substantial obstacles to innovation and technological progress in India.
    • Uncertainty surrounding compliance obligations and enforcement mechanisms discourages investment and innovation in emerging fields like AI.
    • Moreover, burdensome regulatory requirements may stifle entrepreneurship and impede the growth of India's technology sector.

Why Regulate the AI Sector?

  • The regulation of Artificial Intelligence (AI) represents an evolving landscape as governments navigate the potential benefits and pitfalls of this influential technology.

Reasons for Regulation:

  • Risk Management: AI carries the potential for bias, discrimination, privacy breaches, and safety concerns. Regulations serve to mitigate these risks effectively.
  • Transparency and Understandability: Many AI systems operate opaquely, complicating comprehension of their decision-making processes. Regulations can foster transparency and clarity.
  • Establishing Accountability: Regulatory frameworks can delineate clear lines of responsibility for the creation, deployment, and utilization of AI systems.
  • Building Public Confidence: Well-defined regulations can instill public confidence in AI technologies, promoting their conscientious development and application.

Way Forward:

  • Unified Effort: Combating the challenges posed by digital authoritarianism demands a unified effort to uphold democratic principles, foster transparency and accountability, and protect fundamental rights in the digital realm.
  • Scrutiny of MEITY’s Regulatory Measures: MEITY's regulatory initiatives must undergo thorough scrutiny and oversight to ensure alignment with democratic norms and respect for individual liberties.

Conclusion

MEITY's advisory regulations raise pertinent questions regarding its legal jurisdiction, transparency, and impact on technological advancement in India. The ambiguity in terminology, swift policy formulation, and reliance on social media for dissemination weaken the credibility and efficacy of regulatory measures. Addressing these concerns necessitates a reassessment of MEITY's regulatory strategy and a commitment to transparent, inclusive governance practices.

 

India’s R&D Funding, Breaking Down the Numbers

  • 14 Mar 2024

Why is it in the News?

The announcement in the interim Budget for 2024-25, of a corpus of ?1 lakh crore to bolster the research and innovation ecosystem within the country, has sparked enthusiasm within the scientific and research communities.

Context:

  • In the current scenario, the recent allocation of a substantial ?1 lakh crore in India's Interim Budget for 2024-25 to enhance the research and innovation ecosystem underscores the nation's dedication to advancing scientific pursuits.
  • Additionally, the decision to expand the iconic slogan 'Jai Jawan Jai Kisan' to 'Jai Jawan, Jai Kisan, Jai Vigyan, Jai Anusandhan' signifies a renewed focus on research and innovation as essential elements of development.
  • Evaluating the present state of India's research and development (R&D) landscape, including its funding, output, and the potential impact of recent initiatives on nurturing a conducive environment for research and innovation, is imperative.

Current Outlook of India's R&D Landscape:

  • Gross Expenditure on Research and Development: India's R&D sector has witnessed substantial growth, with Gross Expenditure on Research and Development (GERD) increasing from ?6,01,968 million in 2010-11 to ?12,73,810 million in 2020-21.
    • Despite this growth, India's research investment as a percentage of GDP remains at 0.64%, lagging behind major developed and emerging economies like China (2.4%), Germany (3.1%), South Korea (4.8%), and the United States (3.5%).
  • Academic Talent: Despite the relatively lower GDP allocation for R&D, India has emerged as a key producer of academic talent, annually producing an impressive 40,813 PhDs, ranking third globally after the United States and China.
  • Research Output: India's research output remains substantial, ranking third globally with over 3,00,000 publications in 2022, showcasing the nation's robust research ecosystem and its dedication to advancing knowledge across various fields.
  • Innovation: India demonstrates commendable performance in patent grants, securing the sixth position globally with 30,490 patents granted in 2022.
    • While this number is lower compared to the U.S. and China, it reflects India's evolving innovation landscape and its potential for further growth in intellectual property creation.
  • Major Sponsors: In India, GERD is primarily driven by the government sector, including the central government (43.7%), State governments (6.7%), Higher Education Institutions (HEIs) (8.8%), and the public sector industry (4.4%), with the private sector industry contributing only 36.4% during 2020–21.
  • Investment in R&D: According to R&D statistics (2022-23) from the Department of Science and Technology, India's total investment in R&D reached $17.2 billion in 2020-21.
    • Within this sum, 54% ($9.4 billion) is allocated to the government sector, predominantly utilized by four key scientific agencies — the DRDO (30.7%), the Department of Space (18.4%), ICAR (12.4%), and the Department of Atomic Energy (11.4%).

Major Challenges Facing R&D:

  • Private Sector Inertia: Despite India's significant Gross Expenditure on Research and Development (GERD), private industries contribute only 37% of the country's R&D funding, reflecting a discrepancy compared to the global trend where business enterprises typically contribute over 65%.
  • Low Participation by Higher Education Institutions (HEIs): HEIs play a minor role in R&D investment, contributing only 8.8% ($1.5 billion), limiting their potential contribution to research and innovation.
  • Brain Drain: Talented researchers often migrate to countries with better research infrastructure and funding opportunities, leading to a loss of skilled manpower and hindering R&D progress.
  • Inadequate Education and Training: The education system may fail to adequately equip students with the requisite skills and knowledge needed to excel in R&D, posing a challenge to innovation and scientific advancement.
  • Bureaucratic Hurdles: Complex procedures and bureaucratic red tape can impede research initiatives, delaying progress and discouraging potential investors from engaging in R&D activities.
  • Limited Collaboration with Academia: A gap exists between academic research and industry needs, hampering the effective transfer of knowledge and technology, and inhibiting the development of innovative solutions to real-world problems.

Proposed Measures:

  • Embrace a Collaborative Approach: Fostering collaboration among the government, business enterprises, and Higher Education Institutions (HEIs) is imperative to harness the full potential of science, technology, and innovation for driving economic growth and technological progress.
  • Promote Public-Private Partnerships: Encouraging collaboration between academia and industry can facilitate the translation of research findings into commercial applications, bridging the gap between theoretical knowledge and practical implementation.
  • Optimize Resource Allocation: Directing resources towards safeguarding intellectual property rights and addressing technical challenges can unlock new markets and spur innovation.
  • Provide Government Subsidies to Stimulate Private Sector Investment: Implementing government initiatives such as tax incentives and grants can incentivize increased private sector investment in Research and Development (R&D), bolstering India's R&D ecosystem and fostering stronger industry-academia partnerships for knowledge exchange and innovation.
  • Prioritize Skill Development: Reforms in education that prioritize the development of critical thinking, problem-solving, and research skills are essential to nurture a workforce capable of driving innovation and scientific advancement.
  • Streamline Bureaucratic Processes: Simplifying regulatory procedures and regulations can expedite research projects, attract investments, and create a conducive environment for R&D activities.
  • Incentivize Innovation: Introducing government schemes and awards to recognize and reward innovative research endeavors can incentivize scientists, researchers, and businesses to pursue groundbreaking innovations that contribute to societal progress and economic development.

Government Initiatives:

  • National Deep Tech Startup Policy (NDTSP): Recent initiatives, such as the National Deep Tech Startup Policy (NDTSP) and the Anusandhan National Research Foundation (ANRF) Act, signal a strong commitment to fostering research and innovation.
    • The NDTSP aims to incentivize private sector engagement in R&D, while the ANRF Act seeks to bridge the R&D investment gap and nurture a robust research culture within HEIs.
  • Anusandhan National Research Foundation (ANRF) Act: Enacted to address India's persistent R&D investment gap, this legislation aims to cultivate a thriving research culture within Higher Education Institutions (HEIs) and drive innovation across various sectors.
  • UchhatarAvishkarYojana (UAY): Geared towards promoting innovation that addresses industry needs and enhances India's manufacturing competitiveness, UAY fosters collaboration between academia and industry, both domestically and internationally, to drive advancements in research and technology.
  • Impacting Research Innovation & Technology (IMPRINT): This initiative endeavors to tackle pressing engineering challenges by facilitating interdisciplinary research collaborations and translating knowledge into practical solutions across ten designated technology domains.
  • Establishment of Research Parks: Research parks established at premier institutes such as IIT Delhi, IIT Guwahati, and IIT Kharagpur serve as platforms for fostering collaboration between academia, industry, and entrepreneurial ventures, facilitating the establishment of R&D units, and promoting innovation.
  • Impact of Recent Initiatives: These initiatives, coupled with the allocation in the interim Budget, are poised to drive India's research and innovation agenda forward, particularly in burgeoning industries.

Way Forward:

  • India's technological and manufacturing ambitions rely on a pivotal transformation within its R&D domain, necessitating a dual-pronged strategy:
  • Encouraging active participation from the private sector, alongside
  • Strengthening the research infrastructure within academia.
  • Embracing a multifaceted approach that engages a spectrum of stakeholders is imperative to confront the challenges and unlock the full potential of R&D, fostering India's economic expansion and global competitiveness.
  • Drawing insights from the R&D frameworks of developed nations while leveraging India's inherent strengths in agile decision-making and strategic alignment could catalyze a formidable evolution within its R&D landscape.

Conclusion

While significant strides have been made, there is a need for increased funding, stronger industry-academia collaboration, and policy measures to incentivize private sector involvement. Recent initiatives such as the NDTSP and the ANRF Act represent positive steps towards realizing India's potential as a powerhouse of research and innovation. By creating a conducive environment for research and innovation, India can pave the way for sustainable development and prosperity in the years to come.

Green jobs and the problem of gender disparity

  • 06 Mar 2024

Why is it in the News?

Increasing women’s representation in green jobs will lead to benefits such as boosting a low-carbon and environmentally sustainable economy

Context:

  • The worldwide movement towards low-carbon development presents India with a distinctive opportunity for progress.
  • Nevertheless, this transition brings forth a gender disparity challenge, as men tend to transition to green jobs more rapidly than women.
  • Hence, it's crucial to delve into the gender aspects of India's green transition, highlighting the imperative for women's empowerment and gender equality in climate initiatives.

What are Green Jobs?

  • Green jobs represent a category of employment directly benefiting the planet and contributing to overall environmental well-being.
  • These roles are geared towards mitigating the negative environmental impact of various economic sectors and advancing the creation of a low-carbon economy.
  • Occupations involving renewable energy, resource conservation, and the promotion of energy-efficient practices fall under this umbrella.
  • The International Labour Organization characterizes green jobs as 'decent jobs that contribute to the preservation or restoration of the environment.'
  • They encompass diverse sectors such as manufacturing, construction, renewable energy, energy efficiency, and automobiles, historically characterized by lower female representation.

Gender Disparity in Green Jobs:

  • Globally, men tend to transition to green jobs at a faster pace than women.
  • Despite India's significant increase in renewable energy capacity by 250% between 2015 and 2021, women constitute only 11% of workers in the solar rooftop sector.
  • The Annual Survey of Industries 2019-20 reveals that women workers are predominantly concentrated in industries like apparel, textile, leather, food, and tobacco.
  • According to a Confederation of Indian Industry (CII) 2019 report, men make up 85% of the workforce in sectors such as infrastructure, transport, construction, and manufacturing.
  • A 2023 study by the Skill Council for Green Jobs indicated that 85% of green skills training was provided to men, with over 90% of women expressing belief that social norms hinder their participation in such training.
  • Restrictive social norms contributing to this disparity include perceptions that women are unsuitable for certain technical roles, safety concerns, lower representation in science, technology, engineering, and mathematics (STEM) subjects, and familial constraints.

Advantages of Women's Engagement in Green Jobs:

  • Addressing Gender Bias in the Labour Market: Increased representation of women in green jobs acts as a potent remedy to entrenched gender biases in the labor market.
    • By entering traditionally male-dominated sectors like manufacturing, construction, and renewable energy, women challenge stereotypes and reshape societal perceptions of gender roles.
  • Expanded Economic Opportunities: Women's greater involvement in green jobs opens up expanded economic avenues for them.
    • Participation in sectors such as renewable energy and energy efficiency enables women to access high-growth industries, fostering both economic growth and personal financial stability.
    • Beyond economic benefits, engagement in green jobs offers opportunities for women's advancement in technical and social spheres, exposing them to innovative technologies, sustainable practices, and networking opportunities.
  • Empowerment of Women's Agency: The transition to green jobs empowers women by granting them agency over their economic destinies.
    • In roles contributing to environmental preservation or restoration, women find alignment with a broader sense of purpose, fostering a deeper connection to their work and its societal impact.
  • Contribution to Long-Term Gender Empowerment: Participation in green jobs extends beyond immediate economic gains, contributing to the enduring empowerment of women.
    • By breaking into historically imbalanced sectors, women pave the way for future generations, inspiring young girls to pursue careers in STEM fields.
  • Promotion of Environmental Stewardship: Women's involvement in green jobs resonates with their recognized role as custodians of the environment.
    • With a nuanced understanding of the interconnectedness of social and ecological systems, women offer unique perspectives to the development and implementation of sustainable practices within green industries.

Way Forward:

  • Addressing Data Gaps: Rectifying the lack of data is imperative to understand the landscape of women's participation in green jobs in India.
    • Initiatives should focus on mapping emerging areas for green growth and collecting sex-disaggregated data on green jobs to enhance women's engagement.
    • Conducting gender analysis, gathering gender statistics through periodic labor force surveys, and mobilizing additional resources can shed light on the present and future impact of low-carbon transitions on women workers and entrepreneurs. 
  • Supporting Women Entrepreneurs: Gender-targeted financial policies and products tailored to the needs of women entrepreneurs can catalyze their entry into the green transition market.
    • Measures such as collateral-free lending, financial literacy training, and establishing supportive networks are crucial to unlock their potential.
    • Developing appropriate tools to assess creditworthiness, facilitate loan disbursement, and reduce operational costs for women-owned businesses is essential.
  • Promoting a Gender-Just Transition: A comprehensive strategy for a gender-just transition encompasses employment, social protection, reduction of care work burden, and skill development.
    • Collaboration among government, private sectors, and stakeholders is essential to harness innovation, technology, and finance for women entrepreneurs and workers.
    • Businesses must prioritize gender justice to mitigate barriers and promote equitable job opportunities for a fair transition.

Conclusion

As India navigates its green transition, prioritizing women's empowerment and gender equity in climate actions is essential for unlocking the co-benefits of a low-carbon and environmentally sustainable economy. Bridging the gender gap in green jobs requires concerted efforts to address social norms, collect gender-disaggregated data, and implement inclusive policies. This is not only an economic imperative but a crucial step towards building a socially equitable and inclusive future for all.

India's Journey to Net-Zero Amidst Mineral Shortages and Technological Challenges

  • 05 Mar 2024

Why is it in the News?

By 2030, India wants to set up 500 GW of non-fossil fuel power generating capacity but the problem is that the availability of the minerals is not enough. One needs to process it and manufacture the final product which also means access to technology.

Background:

  • As the world shifts towards decarbonization and faces growing demand for critical minerals, governments worldwide are strategically securing access to these vital resources.
  • In alignment with this trend, the Indian government has amended mining laws to encourage private sector involvement in the extraction and processing of critical minerals.

Importance of Critical Minerals:

  • Driving Decarbonization and Clean Energy Technologies: Critical minerals are pivotal for clean energy technologies such as solar PV plants, wind farms, and electric vehicles, essential for global decarbonization efforts.
    •   According to the International Energy Agency (IEA), a substantial portion of minerals like copper, rare earths, nickel, cobalt, and lithium will be crucial for meeting Paris Agreement targets.
  • Transforming the Transportation Sector: Electric vehicles (EVs) rely heavily on critical minerals like lithium, cobalt, and nickel for their battery production.
    •  As countries shift towards EV adoption, the demand for these minerals is expected to soar, driving sustainable transportation initiatives.
  • Essential in Consumer Electronics: Critical minerals are vital for producing consumer electronics such as smartphones, laptops, and tablets.
    • Rare earth elements and other minerals enable the miniaturization and enhanced performance of electronic devices.
  • Supporting the Construction Industry: Critical minerals contribute to the production of high-strength alloys, cement, and other building materials in the construction sector.
    • These minerals enhance the durability and efficiency of construction materials, promoting sustainability in infrastructure projects.
  • Ensuring Defence and National Security: In the defense sector, critical minerals are indispensable for advanced weaponry and communication systems.
    • Securing a stable supply of these minerals is critical for maintaining national security and technological superiority.
  • Vital for Fertilizers and Agriculture: Minerals like phosphorus and potassium are essential components in fertilizers, crucial for enhancing crop yields and ensuring global food security.
  • Crucial for Industrial Magnets: Neodymium, praseodymium, and dysprosium, critical minerals, are crucial for manufacturing magnets used in various industries.
    • These magnets are integral components in technologies ranging from electric motors to medical devices.

Geopolitical Dynamics of Critical Minerals and Global Ramifications:

  • Economic Dynamics: The geographical concentration of critical mineral resources in select countries like Australia, China, the Democratic Republic of Congo (DRC), Indonesia, and Chile fosters economic dependencies.
    • Nations with substantial reserves enjoy advantages in revenue generation, job creation, and overall economic development, potentially leading to global economic disparities.
  • Geopolitical Power Play: The strategic significance of critical minerals turns their extraction and processing into geopolitical instruments, enabling nations to wield influence on the global stage.
    • China, notably, has leveraged its dominance in rare earths to exert political pressure, exemplified by restrictions on exports to countries such as the US and Japan.
    • China's control over critical minerals, coupled with its monopolized processing capacity, carries significant geopolitical implications, prompting international collaborations like the US-led Minerals Security Partnership (MSP) to secure supply chains and reduce dependence on authoritarian regimes.
  • Supply Chain Vulnerability: The concentration of critical mineral resources in specific regions raises concerns about the vulnerability of global supply chains.
    • Political instability, trade conflicts, or other geopolitical events in major producing nations can disrupt the supply of critical minerals, adversely affecting industries reliant on them.

India's Objectives and Hurdles in Acquiring Critical Minerals:

  • Pursuit of Decarbonization Goals and Energy Transition: India has outlined ambitious objectives for decarbonization, aiming for net-zero emissions by 2070 and establishing 500 GW of non-fossil fuel power generation capacity by 2030.
    • Embracing renewable energy sources, electric vehicles, and sustainable practices underscores India's dedication to combatting climate change.
  • Heavy Reliance on Imports: Despite possessing identified reserves, India heavily depends on imports to meet its demand for critical minerals.
    • This import dependency presents significant challenges, exposing the nation to global market fluctuations, supply chain disruptions, and potential geopolitical tensions.
  • Strategic Agreements for Exploration: Acknowledging the necessity to reduce import reliance, India has forged strategic agreements, such as the one with Australia, to jointly explore critical minerals like lithium and cobalt.
    • Collaborations with resource-rich nations aim to secure access to raw materials and diversify sources beyond traditional suppliers.
  • Lack of Domestic Processing Capacity: Identifying critical minerals marks only the initial step; subsequent processing and manufacturing require advanced technology and infrastructure.
    • India encounters challenges in building domestic processing capacity, contributing to an extended gestation period before achieving self-reliance.
    • Apart from raw material availability, accessing advanced processing technology remains crucial, emphasizing the importance of technology transfer and collaborative ventures with proficient countries.
  • Participation in International Collaborations: India's engagement in the US-led MSP illustrates its dedication to fostering strategic partnerships for securing the critical minerals supply chain.
    • The MSP encompasses countries with critical mineral deposits and access to processing technology, fostering a collective endeavor to surmount challenges.

Noteworthy Actions Undertaken by the Indian Government:

  • Identification of Critical Minerals: In July 2023, India took a significant stride by identifying a list of 30 critical minerals, distinct from rare earths.
    • Each mineral was selected based on criteria such as disruption potential, substitutability, cross-cutting usage, import reliance, and recycling rates.
    • The identified minerals are predominantly concentrated in states and union territories, including Bihar, Gujarat, Jharkhand, Odisha, Tamil Nadu, Uttar Pradesh, Chhattisgarh, and Jammu and Kashmir.
  • Amendment of Existing Mining Laws: Subsequently, in November 2023, the Indian government amended existing mining laws to facilitate private sector participation in the auction of 20 blocks containing critical minerals and rare earths.
    • This amendment signifies a notable shift in India's mineral sector, unlocking opportunities for private enterprises to engage in the extraction and processing of these vital resources.

Conclusion

There is a mounting concern that the limited access to critical minerals could pose a substantial obstacle to India's ambitious journey towards decarbonization. The achievement of decarbonization objectives hinges on surmounting challenges associated with import reliance, processing capabilities, and technological advancements.

India's Surprising GDP Growth Rate

  • 02 Mar 2024

Why is it in the News?

India's gross domestic product (GDP) growth for the third quarter (October-December) of the fiscal year 2023-24 has surpassed expectations, coming in at 8.4% compared to the estimated 6.7%.

News Summary:

  • India's economy saw a growth of 8.4% in the December quarter compared to the same period last year, surpassing the 7.6% growth recorded in the previous quarter and the forecast of 6.7% as per a Reuters poll of economists.
  • Further, the NSO pegged a higher GDP growth rate of 7.6% for the entire fiscal year, up from the initial estimate of 7.3%.
  • To comprehend India’s unexpected growth, it is imperative to delve into the diverse aspects of the country's economic landscape, and evaluating the factors underpinning this surprising growth is equally crucial, including consumption patterns, savings dynamics, and investment trends.

What are the Factors Driving India’s Growth Surplus?

  • Enhanced Economic Momentum: Initially estimated at 7.3 percent, the GDP growth set a promising tone for the fiscal year.
    • However, the subsequent second advance estimate, incorporating third-quarter data, surpassed expectations.
    • This signals a bolstered economic momentum, notably fueled by increased net taxes contributing significantly to the growth trajectory.
  • Impact of Rising Net Taxes and Subsidies: An essential aspect of this growth narrative is the comparison between gross value added (GVA) and GDP growth.
    • While GDP growth stands impressively at 7.6 percent, GVA, excluding net tax effects, registers a slightly lower 6.9 percent.
    • This nuanced distinction underscores the influence of net taxes and subsidies on overall economic performance.
    • Furthermore, with an average growth rate of 8.2 percent for the first three quarters, extrapolations suggest a projected fourth-quarter growth of approximately 5.9 percent.
  • Effective Policy Measures and Financial Resilience: Despite GDP figures still below pre-pandemic levels, concerted domestic efforts and policy initiatives have steered the economy toward a 7 percent growth trajectory.
    • A significant factor contributing to this progress is the reinforced state of banking and corporate balance sheets, indicative of the efficacy of strategic policy interventions.

Assessment of Challenges and Expected Downturn:

  • Impact of High-Interest Rates: The enduring prevalence of high interest rates presents a formidable obstacle to sustained economic advancement.
    • Elevated interest rates have the potential to deter borrowing and investment, thereby affecting both consumer expenditure and corporate expansion initiatives.
    • This concern is further compounded by the limited effectiveness of monetary policy, given that inflation projections persist above the Reserve Bank of India's (RBI) 4% target.
  • Normalisation of Net Tax Effects: The current fiscal period has significantly contributed to GDP growth from the escalation of net taxes (taxes minus subsidies).
    • However, there is an anticipation that the net tax influence on GDP will revert to normal levels in the upcoming year.
    • This normalization implies that the impetus provided by the net tax element to the economic growth rate may diminish, potentially leading to a slowdown.
  • Influence of Global Economic Conditions: India's economic performance is intricately intertwined with global economic circumstances.
    • Uncertainties prevailing in the global market, such as trade tensions, geopolitical dynamics, and external disruptions, could trigger spill-over ramifications on India's economy.
    • Consequently, external factors beyond the nation's jurisdiction may exert influence on the overall economic outlook.

Private Consumption, Household Savings, and Evolving Trends:

  • Disparities in Growth: The growth disparity between rural and urban areas is notable, with rural consumption likely trailing urban consumption.
    • This discrepancy can be attributed primarily to the disproportionate impact of high food inflation on rural households.
    • The sluggish growth of agriculture, at a mere 0.7%, underscores the challenges faced by the rural economy, where food inflation significantly affects discretionary spending.
  • Impact of Food Inflation: High food inflation has exerted a considerable influence on consumption patterns, particularly in rural regions.
    • Nominal food consumption spending surged by 13% last year, indicative of the inflationary pressure on essential commodities.
    • This trend is expected to persist, impacting purchasing power and discretionary spending across both rural and urban landscapes.
  • Shifting Consumption Patterns: Household consumption expenditure data reflects a gradual shift towards non-food items over time, mirroring rising per capita income and evolving consumer preferences.
    • This transition underscores the necessity to recalibrate weights in the consumer price index basket, which currently reflects consumption patterns from 2011-12.
  • Household Savings: Disaggregated data reveals that household savings constitute a substantial portion, comprising 61% of total savings in the economy.
    • Despite its prominence, the share of household savings in GDP declined to 18.4% in 2022-23, indicating changing trends in savings composition.
    • Household savings are further categorized into financial and physical savings, with financial savings, including bank deposits and securities, witnessing a significant decline to 5.3% of GDP in 2022-23.
    • Conversely, physical savings, driven by borrowings for assets like houses, have increased, reflecting evolving preferences and market dynamics.

Analysis of Investment Trends: Public, Corporate, and Household:

  • Private Corporate Investment Patterns: The data indicates a stagnant trajectory in private corporate investments, with no clear signs of revival evident in the fiscal year 2022-23.
    • This stagnation raises concerns, as private sector investments play a pivotal role in propelling economic growth, fostering job creation, and stimulating innovation.
  • Public and Household Investment Dynamics: In contrast to private corporate investments, both public and household investments have exhibited substantial growth during the fiscal year 2022-23.
    • Public investments, often influenced by government policies and infrastructure projects, contribute significantly to economic development.
    • On the other hand, household investments, encompassing expenditures on residences and durable goods, serve as indicators of consumer confidence and economic stability.

Way Forward:

  • Mitigating Policy Uncertainty: The government must mitigate policy uncertainty and streamline compliance costs.
    • A stable and foreseeable policy landscape is indispensable for fostering private-sector investments.
    • Addressing these concerns is paramount to cultivating an environment conducive to long-term corporate strategizing and sustained economic expansion.
  • Encouraging a Comprehensive Revival of Private Investments: Recognizing the pivotal role of a comprehensive revival of private investments in sustaining high growth rates over the medium term is imperative for the government.
    • While the government's emphasis on infrastructure development and targeted initiatives like the Production-Linked Incentive (PLI) scheme has yielded positive outcomes, a more holistic approach is warranted to invigorate investments across diverse sectors of the economy.

Conclusion

India's unexpected GDP growth, underpinned by resilient domestic fundamentals and strategic policy emphasis, necessitates a nuanced examination of various economic facets. As India traverses through these multifaceted dimensions, focused attention on private corporate investments, consumption trends, and savings dynamics emerges as pivotal for achieving sustained and inclusive economic progress. Furthermore, the government's role in ensuring policy stability and minimizing compliance burdens emerges as a decisive factor in unlocking the full potential of India's economic prowess.

 

 

 

An expansive land management policy is overdue

  • 27 Feb 2024

Why is it in the News?

The global economic impact of land degradation on ecosystem services amounts to an estimated $6 trillion annually.

Context:

  • Land plays a crucial role across various human endeavors, offering ecological, economic, social, and cultural benefits.
  • However, the multi-faceted nature of land is often overlooked in management practices, leading to heightened stress, degradation, and environmental strain.
  • Globally, land degradation results in annual losses of ecosystem services estimated at USD 6 trillion.
  • The 14th Conference of Parties (COP14) of the United Nations Convention to Combat Desertification (UNCCD), held in New Delhi in 2019, highlighted the widespread challenge of land degradation faced by different nations and emphasized the importance of achieving Land Degradation Neutrality (LDN).

What is Land Degradation?

  • Land degradation refers to the deterioration of the quality and productivity of land resources, typically caused by human activities and natural processes.
  • It involves the loss of soil fertility, reduction in vegetation cover, depletion of water resources, and overall decline in the capacity of the land to support various ecosystem functions and human activities.
  • Land degradation can take various forms, including soil erosion, desertification, deforestation, salinization, and contamination by pollutants.
  • It poses significant environmental, economic, and social challenges, impacting agricultural productivity, food security, biodiversity, and the livelihoods of millions of people around the world.
  • Addressing land degradation is crucial for sustainable land use, environmental conservation, and the well-being of present and future generations.

What is the Current Status of Land Degradation in India?

  • From 2015 to 2019, UNCCD data reported that 30.51 million hectares of India's land had degraded, accounting for 9.45% of the nation's total landmass by 2019, up from 4.42% in 2015.
  • During this period, 251.71 million Indians, constituting 18.39% of the population, were exposed to land degradation, with 854.4 million individuals experiencing drought from 2015 to 2018.
  • According to the Desertification and Land Degradation Atlas of India, published by the Space Applications Centre (SAC) of the Indian Space Research Organisation (ISRO), the extent of land degradation and desertification in India reached 97.84 million hectares in 2018-19.
  • This atlas offers state-wise data on degraded land, aiding in the planning and execution of initiatives aimed at land restoration by providing crucial data and technical insights.

Global Scenario:

  • Land degradation exhibits significant regional variations, with Sub-Saharan Africa, Western and Southern Asia, Latin America, and the Caribbean witnessing degradation rates surpassing the global average between 2015 and 2019.
  • In Eastern and Central Asia, Latin America, and the Caribbean, over 20% of the total land area faced severe degradation by 2019.
  • Since 2015, Sub-Saharan Africa saw its degraded land increase from 6.7% to 14.63%, while Western Asia and Northern Africa experienced a rise from 3.78% to 7.18%.

What are the Different Causes of Land Degradation?

  • Deforestation: Driven by population growth and resource demand, deforestation weakens soil structure, making it prone to erosion by wind and water.
    • Deforestation is particularly rampant in areas like Maharashtra, Rajasthan, Madhya Pradesh, and Gujarat.
  • Mineral Processing: Industries such as limestone grinding and ceramic production release substantial dust, settling in surrounding areas and contributing to land degradation.
  • Soil Erosion: Processes like water flow, wind, rainfall, and landslides strip away the fertile topsoil layer, leaving behind less fertile subsoil, and rendering land unsuitable for cultivation and agriculture.
  • Overgrazing: Excessive grazing by animals removes grass cover, making soil susceptible to erosion by wind and water.
    • This phenomenon, common in hilly areas like Maharashtra, Rajasthan, Madhya Pradesh, and Gujarat, disrupts soil structure and fertility.
  • Over-Irrigation: In states like Punjab, Haryana, and Uttar Pradesh, excessive irrigation leads to soil salinity and alkalinity, diminishing its fertility and suitability for agriculture.
  • Mining Sites: After mining activities, abandoned sites leave deep scars and harmful materials that degrade the soil, rendering it unsuitable for productive use.
    • Deforestation due to mining in states like Chhattisgarh, Jharkhand, Madhya Pradesh, and Odisha exacerbates land degradation.
  • Industrial Effluents: Waste disposal from industries is a significant source of land and water pollution, contributing to land degradation.
  • Mining and Developmental Projects: Large-scale clearing of forests for mining and construction projects further accelerates land degradation under the guise of development.
  • Commercial Exploitation of Forests: High-value trees and plants are harvested for economic gain, disrupting soil-plant interactions essential for soil stability.
    • Overgrazing, mining, agricultural expansion, floods, and forest fires are key drivers of deforestation, exacerbating land degradation.
  • Desertification: Human activities and climate change contribute to desert-like conditions in arid or semi-arid regions, leading to the spread of sand onto fertile agricultural lands, reducing soil fertility, and hampering agricultural productivity.

Challenges in the Management of Land Degradation in India:

  • India with only 2.4% of the world’s geographical area and more than 17% of the world's population experiences several land management challenges.
  • Arable land in India is around 55% of the total geographical area and forest cover accounts for another 22%.
    • The rest is desert, mountains, etc.
  • Around 30% of the total geographical area is degraded land.
  • Access to agricultural land continues to be an important livelihood issue as a significant share of the population depends on agriculture for their sustenance.
  • Development targets and the demand for land to accommodate the growing population, infrastructure, rapid urbanization, and social, cultural, and environmental aspects are placing unprecedented pressure on land.
    • This is resulting in more competition among farmers and between agriculture and other land resource-based sectors, as well as land use conflicts, escalation of land prices, and changing land rights.
  • Across the country, natural areas are being squeezed and ecological functions are being lost.
  • Not only does this adversely affect the livelihood opportunities of the people who directly depend on environmental resources, but also the buffering effects of natural ecosystems in the face of disasters such as floods and droughts, temperature rise, and environmental pollution are severely compromised.
  • Climate change has brought with it another set of challenges.
  • In India, current land management practices are sectoral with each department following its own approach.
    • Land management falls under the purview of State governments.
  • Further, cultural land is privately owned and land-use decisions are constitutionally vested with the owner.
  • Apart from this administrative complexity, the challenges to adopting and implementing appropriate land management practices in the country include knowledge gaps, a short-term planning bias, a fragmented approach, a lack of action for unforeseen events, and regulatory barriers.

What Steps Need to be Taken for Land Management?

  • Set up a Multi-stakeholder Platform: As a critical mechanism to achieving sectoral integration and addressing these challenges, it is imperative to set up a multi-stakeholder platform at the district and sub-district levels to bring together farmers, other land managers, policymakers, civil society organizations, business leaders, and investors under a common platform.
    • Article 243ZD (1) of the Constitution provides for district planning committees to consolidate plans from panchayats and municipalities.
    • This committee may be activated in the direction of preparing a land management plan, covering both agricultural and non-agricultural sectors.
  • Landscape Approach: A landscape approach will be useful in this context as it will provide deep insights to assess the potential of land and the scope of allocation and reallocation of land for appropriate uses.
    • This will help with evaluation, negotiation, trade-off, and decision-making.
    • A climate-smart landscape approach will contribute to climate objectives, increased agricultural production, improved local livelihoods, and the conservation of biodiversity.

Government Initiatives to Combat Land Degradation and Desertification in India:

  • Desertification and Land Degradation Atlas of India, published by Space Applications Centre (SAC) Indian Space Research Organisation, Ahmedabad, which provides the extent of land degradation and desertification in India, states that the land degradation and desertification in the country has been estimated to be 97.84 million hectares in 2018-19.
    • It provides state-wise areas of degraded land which is helpful in the planning and implementation of schemes aimed at the restoration of land by providing important data and technical inputs.
  • An online portal has been developed with the help of Space Application Center(SAC), Ahmedabad for visualization of degraded areas of land with the processes causing degradation.
  • A Centre of Excellence has been envisaged at the Indian Council for Forestry Research and Education (ICFRE) Dehradun for enhanced South-South Cooperation.
    • It aims at knowledge sharing, promotion of best practices, sharing India’s experiences with cost-effective and sustainable land management strategies, developing ideas for transformative projects and programs, and capacity building.

Way Forward:

  • Advancing Integrated Landscape Management: Despite existing on-ground experiences, there is a lack of systematic institutional support for this approach, highlighting the need for concerted efforts to promote it.
  • Embracing the Value of Landscape: Echoing the European Landscape Convention's recognition of landscape as vital for individual and societal well-being, greater emphasis should be placed on understanding and preserving landscapes.
  • Recognizing the Role of Sustainable Land Management: Reports like the U.K. Parliamentary Office of Science and Technology's assessment underscore the importance of managing land sustainably for environmental benefits, including addressing climate change, ensuring food security, and mitigating biodiversity loss.
  • Parliamentary Action in India: Indian lawmakers can spearhead discussions on the evolving challenges of integrated land management practices and play a pivotal role in crafting policies for long-term sustainability.
  • This necessitates the involvement of stakeholders at all levels, fostering collaboration horizontally and vertically across the spectrum.

 

Preserving Democratic Integrity Through Privacy Safeguards in the Digital Age

  • 26 Feb 2024

Why is it in the News?

The big data economy, powered by massive datasets and unprecedented levels of personal information has fundamentally altered how a country conducts elections, and how people vote.

Background:

  • The emergence of the big data economy has significantly altered the landscape of elections and individual voting patterns, offering both benefits and challenges.
  • As the general elections approach in two months, it becomes imperative to delve into the far-reaching effects of extensive datasets on political scenarios.
  • Equally important is a comprehensive understanding of the privacy implications, emphasizing the critical necessity for robust data protection measures, especially in anticipation of the upcoming elections in India.

What are the Challenges Arising from Big Data's Influence on Elections?

  • Precision Targeting and Tailoring: Big data enables political campaigns to engage in micro-targeting, tailoring messages and campaign content to specific demographics or individual voters.
    • By analyzing extensive datasets, candidates gain insights into voters' preferences, behaviors, and opinions, facilitating highly customized outreach efforts across various communication channels.
  • Lack of Transparency and Consent: A significant concern is the opacity surrounding collecting, processing, and utilizing personal information.
    • Voters often lack awareness of databases containing detailed personal data and the extent to which it's used for political purposes.
    • Informed consent becomes elusive, as individuals are unaware of how their data is harnessed, limiting their ability to control its usage.
  • Reinforcement of Power Dynamics: The abundance of data amplifies the power of political entities to influence voters through targeted messaging and strategic communication.
    • Candidates can craft narratives tailored to specific groups, addressing issues and concerns discerned from data analysis.
    • This sophisticated targeting extends beyond demographic attributes, delving into personal preferences and habits.
  • Risks of Manipulation and Exploitation: While big data offers campaign efficiency and targeted communication, it also presents risks of manipulation and exploitation.
    • Unethical practices, such as the strategic dissemination of misinformation to exploit voter sentiments, can undermine the integrity of the electoral process.
    • Information asymmetry between political entities and voters raises concerns about privacy invasion and democratic principles.

 What are the Consequences of Social Media and Networks Effects?

  • Network Effect: The network effect, central to social media platforms, describes the increasing value and utility of a network as more users join.
    • Larger user bases offer enhanced connectivity, content creation, and interaction opportunities, drawing individuals to these platforms.
  • Profound Data Collection and User Profiling: Social media platforms thrive on comprehensive data collection, going beyond basic demographics to create detailed user profiles.
    • Users' interactions provide valuable insights into their preferences, behaviors, and associations, enabling targeted advertising and personalized content delivery.
  • Lack of Transparency in Data Practices: Users often lack awareness of the extent and granularity of data collected by social media platforms, raising concerns about privacy invasion and potential misuse.
    • Limited transparency results in minimal user control over data utilization, highlighting the need for greater transparency and accountability.
  • Algorithmic Personalization and Decision-Making: Algorithms drive personalized user experiences on social media platforms, curating content based on collected data.
    • While personalization enhances user satisfaction, it also introduces concerns regarding algorithmic biases and selective information presentation, influencing user perspectives and behaviors.
  • Commercialization and Data Exploitation: Social media platforms monetize user data through direct sales or personalized advertising, leveraging extensive user profiling for targeted marketing.
    • While this practice benefits platforms economically, it sparks ethical debates surrounding the commercialization and commodification of user information.

The Indian Data Protection Act has Critical Flaws.:

  • India’s Data Protection Act has not yet come into force. Its critical flaws include:
  • Absence of Limitations on Government’s Powers to Access Data: The Act lacks clear limitations on governmental powers to access data, raising concerns about potential misuse and infringing on citizens' right to privacy.
    • This ambiguity undermines the fundamental principle of safeguarding individuals from unwarranted surveillance.
  • Lack of Independence for the Data Protection Board: The absence of proper checks and balances compromises the independence and effectiveness of the Data Protection Board, leaving it vulnerable to external influences and pressures.
    • Instances of withholding information by authorities, citing the Data Protection Act, underscore the potential for confusion and misuse during this transitional phase.
  • Challenges in Enforcement and Redressal: The non-functional status of the Data Protection Board exacerbates challenges in enforcement and redressal mechanisms.
    • Individuals lack a reliable channel for seeking recourse in privacy violations, further complicating the protection of individual rights.
  • Deficiencies in Actionable Rights: The Act needs to adequately address individual rights, notably omitting essential provisions such as the right to compensation.
    • This limitation restricts individuals' ability to seek appropriate remedies for privacy infringements, weakening the overall efficacy of the data protection framework.

Way Forward:

  • Seizing the Opportunity for Improvement: The forthcoming rules to operationalize the Data Protection Act represent a pivotal moment to address existing shortcomings and enhance privacy safeguards.
    • Engaging stakeholders through multi-stakeholder consultations is imperative to ensure a comprehensive and diverse range of perspectives informs the regulatory framework.
  • Placing Individuals at the Core: Prioritizing the impact on individuals is paramount in shaping the rules.
    • By emphasizing individuals' rights and privacy concerns, the regulatory framework can better serve the needs and interests of citizens.
    • Sustained and inclusive consultation processes must remain ongoing, fostering an environment conducive to incorporating feedback from diverse stakeholders.
  • The urgency for Legislative Reforms: While the rules offer avenues for corrective action, the imperative for legislative reforms cannot be overstated.
    • Foundational flaws, particularly concerning governmental powers and the independence of the Data Protection Board, necessitate substantive changes at the legislative level.
    • Striking a delicate balance between feasibility and inclusivity is essential to avoid hasty amendments that may compromise the integrity and effectiveness of the data protection regime.

Conclusion

As India approaches elections, the need for a people-centric data protection framework becomes evident, striking a delicate balance between the advantages of digitization and the preservation of privacy and democratic values. Emphasizing inclusive and rights-based models is crucial in effectively addressing the complexities presented by the big data landscape, fostering a resilient and equitable digital future that cannot be underestimated.

Paradigm Shift: Unleashing Local Wisdom for Sustainable Economic Growth

  • 24 Feb 2024

Why is it in the News?

India’s policymakers must free themselves from Western-dominated theories of economics and in this, local solutions are the way to solve global systemic problems.

What is Economic Growth?

  • Economic growth denotes the expansion of a nation's economy over a defined duration.
  • This expansion is commonly quantified by the aggregate output of goods and services within the economy, known as gross domestic product (GDP).

Key Points:

  • GDP Measurement: Gross domestic product serves as the primary metric for assessing economic growth, reflecting the overall economic activity within a nation.
    • GDP represents the total monetary value of all finalized goods and services generated within a country's borders during a specified timeframe.
  • Definition of Economic Growth: Economic growth signifies the sustained increase in a country's real national income and per capita income over an extended period.
    • This progression indicates an expansion in the nation's economic output and its citizens' earning potential.
  • Long-term Perspective: Economic growth is characterized by its longitudinal nature, emphasizing continuous advancement in a nation's economic prosperity over time.
    • It underscores the importance of sustained increases in productivity, income levels, and overall economic well-being.

Current Economic Analysis:

  • GDP as a Benchmark: Gross Domestic Product (GDP) growth has emerged as the predominant yardstick for evaluating the overall well-being of economies worldwide.
    • It serves as a comprehensive measure of a nation's economic output, encompassing the total value of goods and services produced within its borders over a specific period.
  • Paradigm Shift: There has been a notable shift in economic ideology, prioritizing the expansion of the economic "pie" before addressing issues of income distribution.
    • This paradigmatic change has supplanted previous socialist models that emphasized addressing socio-economic disparities at the grassroots level.
  • Historical Economic Focus: Since the liberalization of India's economy in 1991, successive governments have placed considerable emphasis on fostering GDP growth as a primary driver of economic development.
    • This policy orientation has underscored the significance of achieving robust GDP expansion as a cornerstone of national economic policy.
  • Projected Growth Trajectory: The First Advance Estimates of National Income for the fiscal year 2023-24 indicate a projected Real GDP growth rate of 7.3 percent for India.
    • This forecast, as outlined in the Macro-Economic Framework Statement 2024-25, reflects the anticipated trajectory of India's economic growth in the near term.
  • Global Economic Projections: According to the International Monetary Fund (IMF), India is poised to ascend to the rank of the third-largest economy globally by 2027, measured in terms of market exchange rate.
    • Additionally, the IMF anticipates a substantial increase of 200 basis points in India's contribution to global economic growth over the next five years.

Addressing Challenges and Considerations:

  • Beyond GDP: Limitations in Assessing Well-being: Gross Domestic Product (GDP) fails to comprehensively measure a nation's overall standard of living or well-being.
    • It overlooks critical aspects that contribute to general welfare, such as environmental sustainability and quality of life indicators.
  • External Costs and Trade-offs: While GDP growth may signify increased economic output, it can also entail adverse consequences, including environmental degradation and societal trade-offs.
    • For instance, heightened industrial activity may lead to environmental harm or infringe upon individuals' leisure time.
  • Socioeconomic Inequality: The distribution of GDP among a country's populace significantly impacts its citizens' quality of life.
    • India's economic progress, marred by increasing inequality, underscores the importance of addressing disparities in wealth distribution to foster inclusive growth.
  • Unemployment Challenges: Despite remarkable GDP growth, India grapples with persistent challenges in providing adequate employment opportunities.
    • The discrepancy between economic expansion and job creation highlights the need for targeted interventions to address unemployment concerns.
  • Reimagining Economic Progress: Rethinking traditional metrics of economic success is imperative to address the multifaceted challenges facing nations today.
    • Embracing alternative indicators that prioritize sustainability, social equity, and inclusive growth can pave the way for a more holistic approach to economic development.

Inclusive and Sustainable Development:

  • Traditional economic models advocate for linear development paths, prioritizing urbanization and industrialization.
  • However, India's slow progress in these areas raises concerns, especially amidst global climate challenges.
  • The reliance on fossil fuels for growth further complicates matters, requiring a reevaluation of development paradigms.
  • India must pioneer inclusive and environmentally sustainable growth models to address these challenges effectively.
  • This necessitates a shift towards alternative pathways that prioritize both economic advancement and environmental stewardship.
  • By fostering innovation and collaboration, India can lead the way towards a more sustainable future for itself and the world.

Fossil Fuels and the Modern Economy:

  • ??Fossil fuels play a crucial role in the global economy, serving as vital resources for various sectors.
  • These include coal, oil, and natural gas, which contribute significantly to the production and distribution of essential materials for modern society, including steel, concrete, plastics, and food.
  • While fossil fuels have fueled industrialization and economic growth, their adverse effects on both human health and the environment raise significant concerns.
  • Balancing their economic importance with the need for sustainable alternatives poses a challenge for modern society.

Way Forward:

  • Addressing the Global Climate Crisis: India must confront the pressing challenge of the global climate crisis while simultaneously advancing its own economic growth to bridge the gap with developed nations.
  • Embracing a New Paradigm: India should strive to forge a new paradigm of progress that prioritizes inclusive and environmentally sustainable growth, benefiting both its citizens and the global community.
  • Diversifying Economic Perspectives: Policymakers in India ought to liberate themselves from the dominance of Western economic theories, fostering a more diverse and contextually relevant approach to economic development.
  • Harnessing Rural Potential: Rural India has the potential to serve as a hub of innovation, generating novel solutions in institutions and policies conducive to inclusive and sustainable growth, with relevance beyond national borders.
  • Local Solutions for Global Challenges: Systems science underscores the efficacy of locally crafted solutions, collaboratively developed by communities in their own locales, as effective remedies for global systemic issues such as climate change and inequitable economic growth.
  • Prioritizing Economic Development: A concerted focus on economic development is essential, encompassing efforts by policymakers and communities to enhance the standard of living and economic conditions across the country.
  • Holistic Approach to Development: Economic development encompasses not only material prosperity but also the overall quality of life of the population, encompassing factors such as education, healthcare, and nutrition.
  • Enhancing Living Standards: The advancement of a nation's economic development correlates with improvements in the living standards of its people, reflecting better access to education, healthcare, and other essential amenities.

With elections in at least 83 countries, will 2024 be the year of AI freak-out?

  • 19 Feb 2024

Why is it in the News?

Regulatory panic could do more harm than good. Rather than poor risk management today, rules should anticipate the greater risks that lie ahead.

Context:

  • The year 2024 will see 4.2 billion people go to the polls, which, in the era of artificial intelligence (AI), misinformation and disinformation may not be the democratic exercise intended.
  • The Global Risks Report 2024 named misinformation and disinformation a top risk, which could destabilise society as the legitimacy of election results may be questioned.
  • Therefore, it is crucial to scrutinise the possible drawbacks of swiftly formulated regulations to counter AI-driven disinformation during this crucial period.

What are the Major Challenges Arising from Hasty Regulatory Responses to AI?

Escalation of Disinformation: Unintended Ramifications of Resource Allocation

  • The surge in disinformation, demonstrated by manipulated videos impacting political figures, presents a formidable obstacle.
    • For instance, consider the case of Tarique Rahman, a leader of the Bangladesh Nationalist Party, whose manipulated video suggested a reduction in support for Gaza's bombing victims—an action with potential electoral repercussions in a Muslim-majority country.
  • Meta, the parent company of Facebook, exhibited delayed action in removing the fabricated video, raising concerns about the effectiveness of content moderation.
  • Moreover, the reduction in content moderation staff due to widespread layoffs in 2023 exacerbates the challenge.
  • The pressure to prioritize interventions in more influential markets may leave voters in less prominent regions, such as Bangladesh, vulnerable to disinformation, potentially leading to a global surge in disinformation due to the focus on catching misinformation from powerful governments.

Reinforcement of Industry Dominance: Amplifying Concentration and Ethical Concerns

  • While well-intentioned, AI regulations risk bolstering industry concentration. Mandates such as watermarking (which are not foolproof) and red-teaming exercises (which are expensive) may inadvertently favour tech giants, as smaller companies encounter compliance obstacles.
  • Such regulations could further entrench the power of already dominant players by erecting barriers to entry or rendering compliance unfeasible for startups.
  • This concentration not only consolidates power but also raises apprehensions regarding ethical lapses, biases, and the centralization of consequential decisions within a select few entities.

Navigating Ethical Quagmires: Pitfalls of Sincere Guidelines

  • The formulation of ethical frameworks and guidelines introduces its own complexities.
  • The question of whose ethics and values should underpin these frameworks gains prominence in polarized times. Divergent perspectives on prioritizing regulation based on risk levels add layers of complexity, with some viewing AI risks as existential threats while others emphasize more immediate concerns.
  • The absence of laws mandating audits of AI systems raises transparency issues, leaving voluntary mechanisms vulnerable to conflicts of interest.
  • In the Indian context, members of the Prime Minister's Economic Advisory Council have even argued that the concept of risk management itself is precarious concerning AI, given its non-linear, evolving, and unpredictably complex nature.

Navigating the Complexity of AI Regulation: Strategies for Policymakers

  • Acknowledge and Address Democracy's Inherent Challenges Alongside AI Threats:
    • Before delving into the intricacies of AI-related risks, policymakers must acknowledge the persistent challenges facing democracy globally.
    • Instances of unjust political imprisonments, threats to electoral processes, and disruptions to communication networks underscore the vulnerability of democratic systems.
    • Furthermore, the enduring issues of vote-buying and ballot-stuffing tarnish the integrity of elections.
    • These entrenched challenges within the democratic process provide context for evaluating the novelty of AI threats.
  • Strike a Balance Between Addressing AI Risks and Implementing Sensible Regulation:
    • The rush among regulators to enact AI regulations ahead of the 2024 elections, following the AI fervour of 2023, underscores the need for caution.
    • While it is essential to confront the emerging threats posed by AI, hastily devised regulations may inadvertently worsen the situation.
    • Policymakers must carefully consider the potential for unintended consequences and the complexities inherent in regulating a swiftly evolving technological landscape.
    • It is crucial for regulators to appreciate the delicate balance required to manage AI risks without unintentionally creating new challenges or hindering democratic processes.
  • Prepare for Future Challenges: Policymakers must adopt a forward-thinking approach to AI regulation, anticipating and formulating rules that not only address current risks but also proactively tackle future challenges.
    • Recognizing the rapid evolution of technology, regulatory frameworks must evolve accordingly.
    • By planning several steps ahead, regulators can contribute to the resilience of democratic processes, ensuring that voters in elections beyond 2024 benefit from an adaptive, proactive, and effective regulatory environment.

How Major Tech Companies Join Hands to Combat AI Misuse in Elections?

  • On February 16th, 2024, a major step was taken in the fight against AI misuse in elections.
  • 20 tech giants, including Microsoft, Google, Meta, and Adobe, signed a voluntary agreement called the "Tech Accord to Combat Deceptive Use of AI in 2024 Elections."
  • This agreement marks a significant step towards collective action against the potential manipulation of democratic processes through deepfakes and other AI-generated content.

Key features of the Tech Accord:

  • Collaborative detection and labelling: Companies pledge to develop tools and techniques for identifying and labelling deepfakes, fostering transparency and facilitating content removal.
  • Transparency and user education: The accord emphasizes transparency in company policies regarding deepfakes and aims to educate users on identifying and avoiding them, raising public awareness about the technology's capabilities and limitations.
  • Rapid response and information sharing: The signatories commit to sharing information and collaborating on takedown strategies for identified deepfakes, aiming for faster removal and a unified front against malicious actors.
  • Additional measures: The agreement includes further commitments to invest in threat intelligence, empower candidates and officials with reporting tools, and collaborate on open standards and research.

However, critical analysis reveals potential limitations:

  • Voluntary nature: The accord's voluntary character raises concerns about its enforceability and long-term effectiveness.
    • Companies may prioritize competing interests over their goals.
  • Technical challenges: Deepfake detection remains an evolving field with limitations.
    • Continuous innovation by malicious actors can outpace detection capabilities.
  • Potential for bias: Concerns exist about potential biases in detection algorithms, particularly regarding marginalized groups, further complicating the issue.
  • Freedom of expression and censorship: Balancing the need for content moderation with upholding freedom of expression requires careful consideration and potential legal challenges.

Conclusion

Balancing immediate concerns with long-term implications, and addressing AI-related electoral risks requires careful regulatory foresight. While the Tech Accord offers promise in combatting AI-driven election interference, its effectiveness depends on rigorous implementation and continuous adaptation to evolving threats. Ongoing research and dialogue are crucial to address ethical concerns and ensure a balanced approach to safeguarding democracy and individual rights.

The Cost of Legal MSP is Greatly Exaggerated (Indian Express)

  • 17 Feb 2024

Why is it in the News?

Farmers have resumed protests without a specific trigger, unlike their previous march against contentious farm laws. Their main demand is a legal guarantee for Minimum Support Prices (MSP).

Context:

  • The renewed protest by farmers, advocating for a legal assurance of Minimum Support Prices (MSP), underscores the enduring battle for agricultural sector stability.
  • Amidst this, it's crucial to delve into the intricacies of MSP, address prevailing misconceptions, and explore the advantages of formalising this system.

What is the Minimum Support Price (MSP)?

  • MSP (Minimum Support Price) is the cost at which the government buys crops from the farmers, to guarantee farmers against any sharp fall in agricultural income.
  • It is declared by the Government based on the proposal of the Commission for Agricultural Cost and Prices (CACP), at the start of the planting season.
  • This mechanism aims to protect small and marginal farmers from financial losses and ensure an adequate supply of food grains for public distribution across India.
  • Since its inception in 1966-67 for wheat, the MSP framework has expanded to cover various essential food crops, facilitating their availability to the public through subsidized rates under the public distribution system.
    • However, only a small percentage, approximately 6% or less, of farmers are able to sell their produce at prices higher than the MSP.

Is the MSP Different in different states?

  • Because of the variety in irrigation and wages, the expense of a similar yield changes from one state to another.
  • However, there is no draft of the local Minimum Support Price, so there is one MSP for the whole country.

Significance of Minimum Support Price: 

  • Fixed Remunerations: The farmers are financially insured against the impulses of price fall in the market.
    • It gives security to farmers from crop loss and price uncertainty.
  • Help in Decision Making: MSPs are reported toward the start of the planting season, this assists farmers with settling on the best choices of crop that they should plant.
    • This development data assists the farmer with settling on the best choice with regards to which yield to plant for the most extreme monetary advantage inside the restrictions of his agricultural land size, environment, and irrigation framework.
  • Crop Diversification: The MSP declared by the Government of India without precedent for 1966-67 for wheat has reached out to around 24 crops at the present.
    • This has urged the farmers to develop these different crops to maximize their agricultural income.
  • Price Limitations for Private Purchasers: MSP conveys a value message to advertise that if vendors don’t offer higher than MSP costs the farmer may not sell them his produce.
    • In this manner, it goes about as an anchor or benchmark for agricultural produce.
    • It guarantees the market costs won’t be radically lower than the Minimum Support Price.
  • Commercial Crops: MSP is utilized as an instrument to boost the creation of explicit food crops which is short in supply.
    • MSP spurs farmers to develop commercial crops and expand creation on a commercial basis.
  • Purchasing Power Enhancement: MSP provides fixed amounts in framers’ hands which makes them financially stable.
    • It helps in upgrading the buying limit and updating the style of living of farmers and their families.

Challenges in Implementation of MSP:

  • Selective Intervention and Limited Coverage: Despite the annual announcement of MSP for 23 crops, actual implementation tends to be selective, primarily focusing on major crops like rice and wheat.
    • This limited coverage undermines the broader objective of ensuring stability across various agricultural commodities.
  • MSP Implementation Bias: The unequal application of MSP, favouring specific crops, marginalizes farmers cultivating other essential commodities.
    • This bias exacerbates regional disparities and impacts the economic well-being of farmers engaged in non-major crop cultivation.
  • Disconnect Between Market Price and MSP: The disparity between market prices and MSP poses a significant challenge, as government intervention is triggered primarily when market prices fall below the MSP.
    • Inconsistent intervention exacerbates uncertainties for farmers, leading to financial distress during market downturns.
  • Perceived Government Apathy: Farmers perceive a lack of genuine interest or urgency from the government in effectively implementing MSP.
    • This perceived apathy breeds distrust and frustration among farmers, fueling demands for a legal guarantee to ensure consistent and widespread implementation.
  • Political Hesitation and Decision-Making Delays: While there is political consensus supporting a legal guarantee for MSP, successive governments have hesitated to formalize this mechanism.
    • Delayed decision-making perpetuates uncertainties in the agricultural sector, undermining the effectiveness of MSP as a stabilizing force.

What Does a Legal Guarantee of MSP Mean and What Obstacles in Legalising MSP?

  • It means that anyone paying less than the price set by the government for crops could be criminally charged.
    • Currently, there is an MSP for 23 crops.
    • However, the highest procurement by the government is of wheat and rice.
  • According to experts, if MSP is legally guaranteed, the government will have to pay it regardless of supply and demand dynamics.
    • At the moment, about 60 per cent of the total field crop production in India comes from wheat and paddy.
  • Fiscal Concerns: Misconceptions regarding the fiscal implications of guaranteeing MSP have posed obstacles to its legalization.
    • Despite the political consensus, concerns over perceived excessive fiscal burdens have deterred governments from formalizing MSP.
  • Prevalent Misconceptions: There is a prevalent misconception that legalizing MSP necessitates government procurement of all agricultural produce, which is inaccurate.
    • Government intervention is required only when market prices dip below MSP, and it does not entail the procurement of the entire marketable surplus.
  • Misunderstanding of Procurement Costs and Subsidies: The cost of procuring rice and wheat is often misconstrued as the cost of the MSP program, whereas it primarily serves as a subsidy to consumers rather than farmers.
    • For other crops, government procurement is not a cost unless sold with a subsidy, with the actual cost being the difference between economic cost and issue price.

Potential Advantages of Legalising MSP:

  • Ensuring Uniform Implementation: Formalizing Minimum Support Prices (MSP) establishes a clear legal framework, ensuring consistent application across all crops.
    • This move addresses current issues of selective intervention, providing farmers with a dependable safety net.
  • Promoting Inclusive Agricultural Growth: Expanding MSP coverage to various crops ensures that price stability benefits all segments of the farming community.
    • Small and marginal farmers cultivating diverse crops can access MSP protection, fostering inclusive agricultural development.
  • Reducing Farmer Vulnerability: Formalizing MSP reduces farmers' susceptibility to market fluctuations by guaranteeing a minimum income for their produce.
    • This assurance enables farmers to navigate uncertainties with confidence, knowing that government intervention is assured during price downturns.
  • Boosting the Rural Economy: A secured MSP contributes to farmers' economic well-being, leading to increased rural income.
    • This upliftment stimulates the rural economy by generating demand for goods and services, fostering growth across multiple sectors.
  • Clarifying Consumer Subsidies: Formalization helps distinguish between procurement costs and consumer subsidies, often conflated as MSP program expenses.
    • This clarity aids policy discussions and ensures targeted subsidy allocation, benefiting both farmers and consumers.
  • Facilitating Strategic Government Operations: A legal framework empowers the government to conduct strategic operations in domestic and international markets.
    • Through controlled sales during periods of high market prices, the government can manage inflation, ensuring price stability for consumers.

Conclusion

The legalization of MSP presents a holistic remedy to the agricultural sector's woes.

Beyond ensuring uniform application, it fosters diversification, inclusivity, and economic robustness, ultimately benefiting farmers and bolstering rural prosperity. By dispelling misconceptions and tackling apprehensions, policymakers can pave the way toward a more secure and prosperous future for our farmers.

 

WTO Pressure on Indian Farm Subsidies Amid Farmer's Protest for MSP (Indian Express)

  • 15 Feb 2024

Why is it in the News?

The government might find it challenging to meet the protesting farmers' demand for a legal guarantee of (MSP) due to India's farm subsidies being scrutinised at the (WTO), especially with criticism from a group of 19 influential agricultural exporting countries.

Background:

  • After independence, our country struggled to produce enough food for its large population as the agriculture sector was in a poor state.
  • To address this challenge, we either had to import grains, which incurred significant costs, or rely on aid from other nations.
  • In 1960, the government took steps toward self-sufficiency. They introduced high-yielding seeds, promoted the use of fertilisers, and improved agricultural machinery.
  • At the same time, the government supported rice and wheat cultivation by offering farmers a Minimum Support Price (MSP).
    • This ensures that farmers receive a fair price; if they can't sell their crops for a better price in the market, the government will buy them at a favourable rate.
  • However, there's currently tension between India and the WTO regarding these subsidies.

Green Revolution

  • The Green Revolution, initiated in the 1960s, aimed to enhance agricultural productivity and bolster the nation's economy.
  • India embraced technological and industrial advancements in agriculture during this era.
  • This included the adoption of high-yield seeds, modern farming equipment, irrigation systems, pesticides, and fertilisers to transform the agricultural landscape.
  • The green revolution helped India move from a state of importing grains to a state of self-sufficiency.

Causes of Tensions Between India and the WTO:

  • India's actions in this realm have stirred discontent among other nations, who perceive India's practices as unfair trade manoeuvres.
    • The government's practice of procuring crops from farmers at low prices and subsequently exporting them at reduced rates to global markets has drawn criticism.
  • Developed countries have lodged complaints, alleging multiple instances of India breaching WTO regulations by providing subsidies amounting to 60-70% of the total crop value.
  • While the WTO permits governments to offer subsidies to farmers, it imposes restrictions, allowing developed countries to provide up to 5% and developing countries up to 10% of the total value in subsidies.

What are the WTO Regulations on Farm Subsidies?

  • The WTO regulations on farm subsidies aim to promote fair competition and prevent global trade distortion.
  • These regulations establish limits on the types and levels of subsidies that member countries can offer to their agricultural sectors.
  • Levels of Subsidies:

Green Box:

  • These subsidies have minimal impact on trade distortion.
  • They are not specific to particular products and are generally permissible under WTO rules.
  • Examples include funding for research, environmental conservation, and direct income support for farmers facing challenges such as crop loss or natural disasters.

Amber Box:

  • These subsidies promote excessive production and distort international trade.
  • Examples include input subsidies like those for seeds, fertilisers, and Minimum Support Price (MSP).
  • WTO restricts these subsidies, capping them at 5% for developed countries and 10% for developing countries.

Blue Box:

  • These subsidies, akin to Amber Box subsidies, aim to limit production.
  • Currently, only a few countries, such as Norway and Iceland, utilise these subsidies.
  • The WTO does not impose any limits on these subsidies.

Why India's Agricultural Subsidy Programs Encounter Challenges in the WTO?

  • India's agricultural subsidies face hurdles at the WTO due to the organisation's rules, which do not consider subsidies on a per-farmer basis, disadvantageous to developing countries like India.
    • For instance, although India's per-farmer subsidy is significantly lower compared to countries like the US, the WTO regulations focus on total subsidy amounts.
  • In 2019-20, India's subsidies exceeded the 10% limit relative to its total rice production, despite the per-farmer subsidy being relatively modest at $300 compared to the US's $40,000 per farmer.
  • While India is safeguarded by the 'Peace Clause' established during the WTO's Bali ministerial in 2013, certain ambiguities in the clause leave India vulnerable to disputes.
  • Consequently, new schemes must adhere to the 10% subsidy ceiling, foregoing protection under the 'Peace Clause'.

Criticism of India’s Agricultural Subsidies by Influential Agricultural Exporting Countries:

  • The Cairns Group, which includes countries like Australia, Brazil, and Canada, has raised concerns about the level of subsidisation in India’s public stockholding (PSH) program.
  • They argue that India's agricultural support measures are significantly subsidised, leading to distortions in global food prices and negatively impacting food security in other nations.
  • Last year, the group circulated a comprehensive proposal aimed at reducing trade-distorting agricultural support among WTO members, advocating for a halving of the total global entitlement/subsidies.
  • This proposal sparked tensions among developing nations, with India among those affected.
  • Essentially, the Cairns Group is advocating for India to either dismantle or scale back its Minimum Support Price (MSP) scheme, prompting India to seek stronger legal protection for its MSP program.

Upcoming Challenges for the Government of India:

  • In pursuit of greater flexibility in providing agricultural support, India is actively advocating for a permanent solution at the forthcoming inter-ministerial summit in Abu Dhabi.
  • However, the entrenched impasse on politically sensitive issues between developed and developing nations makes resolution unlikely.
  • Farmers' groups in India advocate for removing agriculture from the purview of the WTO, but this approach could present challenges and hinder India and other developing nations from regulating subsidies provided by developed countries.
  • The government faces a dilemma, as it grapples with peer pressure at the WTO while simultaneously facing demands for Minimum Support Price (MSP) from farmers.
  • The call for better MSP support isn't limited to Punjab farmers; farmers across the nation are seeking similar assurances.
  • Furthermore, if farmers in Punjab and Haryana shift away from agriculture, it could pose a threat to the country's food security.

Way Forward

  • While India currently avoids disputes on the subsidy matter at the WTO due to the non-functionality of the Dispute Settlement Body (DSB), member countries will continue to scrutinise India's adherence to subsidy limits.
  • As a result, India must advocate not only for adjustments to the formula used to calculate the food subsidy cap within the WTO but also for the inclusion of programs implemented after 2013 under the protection of the 'Peace Clause'.

The Call for a Progressive Outlook in India's Bilateral Investment Treaties (Indian Express)

  • 10 Feb 2024

Why is it in the News?

While presenting the interim Union budget, Finance Minister Nirmala Sitharaman stated that India will be negotiating Bilateral Investment Treaties (BITs) with its trade partners to boost the inflow of foreign direct investment.

Background:

  • India's economic terrain is undergoing a significant shift following the Finance Minister's announcement of plans to negotiate Bilateral Investment Treaties (BITs) during the interim Union budget presentation.
  • This decision arrives at a critical juncture, coinciding with India's struggle to address declining levels of foreign direct investment (FDI) and the aftermath of adopting the 2016 Model BIT.
  • Given these circumstances, it becomes imperative to explore the evolution of India's BITs, assess the implications of the 2016 model, and analyze the recent policy shift to gauge its potential impact on FDI.

Evolution of Bilateral Investment Treaties (BITs) in India:

  • Origins of BITs in India (1990s): During the mid-1990s, India embarked on a significant economic policy shift by initiating Bilateral Investment Treaties (BITs) to attract foreign direct investment (FDI) and create an enabling environment for economic growth.
    • The primary aim was to demonstrate India's commitment to protecting investments made by individuals and companies from partner countries.
    • The signing of the first BIT between India and the UK in 1994 laid the groundwork for a series of agreements that would play a pivotal role in India's global economic integration.
  • Expansion of BITs as Economic Diplomacy (Late 90s to 2000s): BITs in India evolved into strategic tools to mutually encourage and safeguard investments in each other's territories.
    • As India sought to position itself as a premier investment destination, these treaties became instrumental in signaling its dedication to safeguarding the rights and interests of foreign investors.
    • This period witnessed a proliferation of BITs, reflecting India's acknowledgement of the importance of foreign capital in stimulating domestic industries and infrastructure development.
  • Emerging Challenges and Disputes (2010s): The significance of BITs became evident in 2010 with the settlement of the first-ever investor treaty claim in India.
    • Subsequent events, including the unfavorable award in the Australia-India BIT dispute (White Industries v Republic of India) in 2011, underscored the complexities and challenges associated with managing disputes arising from these agreements.
    • By 2015, India found itself embroiled in 17 known BIT claims, with the Cairn Energy Plc case being particularly notable.
    • These challenges prompted a critical reassessment of India's approach, leading to the adoption of the 2016 model BIT.
  • Adoption of the 2016 Model BIT and Policy Shift: The adoption of the 2016 model BIT signalled a significant shift in India's approach to BITs.
    • It was viewed as a protective measure, resulting in the termination of numerous existing treaties.
    • However, the 2016 model BIT faced criticism for its exclusion of key international law principles, such as 'fair and equitable treatment' and 'most favoured nation.'
  • Additionally, it introduced a requirement for investors to exhaust local remedies before resorting to international arbitration, potentially delaying the dispute resolution process.

Issues with the 2016 Model of BIT and their Consequences:

  • Protective Nature: The introduction of the 2016 Model BIT marked a significant shift in India's approach to bilateral investment treaties, aiming for greater protection.
    • Positioned as a response to past disputes, it led to the termination of numerous existing treaties, signalling a desire to recalibrate engagement terms with foreign investors.
    • However, concerns arose about its potential impact on India's attractiveness as an investment destination.
  • Absence of Key International Law Doctrines: Criticism was directed at the 2016 model BIT for deviating from established international law doctrines.
    • Notably, it lacked principles like "fair and equitable treatment" and "most favoured nation," raising doubts about fairness and protection for foreign investors.
    • This omission complicated the interpretation and enforcement of investment agreements, adding uncertainty for investors.
  • Requirement for Exhausting Local Remedies: The 2016 model BIT introduced a requirement for investors to exhaust local remedies before pursuing international arbitration.
    • While this aimed to promote domestic dispute resolution, it created delays and challenges.
    • Investors found navigating local legal systems time-consuming and ineffective, potentially discouraging investment.
  • Adverse Impact on FDI and Renegotiation Challenges: The consequences of the 2016 model BIT were evident in declining FDI in India.
    • FDI equity inflows dropped by 24% to $20.48 billion in April-September 2023, reflecting investor concerns.
    • The termination of existing treaties and challenges with the new model hindered India's ability to renegotiate terms, affecting its attractiveness to foreign investors.
    • The Cairn Energy Plc case, resulting in a significant award against India, highlighted the difficulties under the 2016 model BIT.

Government Recommendations and Policy Reforms Following Challenges with the 2016 BIT Model:

  • Acknowledgement of Limitations and Policy Adjustment: Recognizing the constraints and hurdles posed by the 2016 Model BIT, the Indian government has signalled a shift towards more adaptable and practical strategies.
    • The announcement during the presentation of the interim Union budget, highlighting the negotiation of Bilateral Investment Treaties with trading partners, signifies a departure from rigid approaches.
    • This acknowledgement underscores the necessity for a nuanced approach that considers evolving international investment dynamics and global economic shifts.
  • Parliamentary Standing Committee Proposals: In 2021, the Parliamentary Standing Committee on External Affairs proposed several key recommendations to reevaluate the existing BIT framework.
    • These recommendations aimed to tackle challenges associated with the 2016 model BIT and foster a more investor-friendly environment.
    • One notable recommendation emphasized the importance of timely dispute resolution through pre-arbitration consultations and negotiations.
    • This proactive stance aims to streamline the dispute-resolution process and alleviate pressure on both foreign investors and the Indian legal system.
  • Addressing India's Contract Enforcement Ranking: India's low ranking in contract enforcement, currently at 163 out of 190, remains a significant concern.
    • Recognizing the link between an efficient legal framework and foreign investment attractiveness, recommendations from the Parliamentary Standing Committee serve as a call to action.
    • A timely review of treaties and alignment with global best practices becomes crucial to improving the ease of doing business, reinforcing India's commitment to fostering an investment-friendly climate.
  • Free Trade Agreement (FTA) with the UK: As part of ongoing policy reforms, India is working towards finalizing a free trade agreement (FTA) with the UK.
    • This strategic endeavour has undergone over 14 rounds of negotiations, with disputes being a major obstacle.
    • The proposed FTA is expected to eliminate the requirement for exhausting local remedies, offering a mechanism for swift dispute resolution through international arbitration.
  • This pragmatic approach acknowledges the importance of rapid dispute resolution in nurturing international trade relationships.

Conclusion

Achieving a $5 trillion economy hinges on robust international trade and secure investments in India. A forward-looking strategy for BITs is essential to attract and maintain long-term foreign investments, and the government's recent initiative is a positive move. Nevertheless, adopting a more tailored approach, rather than a one-size-fits-all model, is necessary to facilitate rapid yet sustainable growth in cross-border flows.

 

Contribution of Dr MS Swaminathan Towards Indian Agriculture (Indian Express)

  • 09 Feb 2024

Why is it in the News?

Recently, Prime Minister Modi announced that the agriculture scientist M S Swaminathan will be honoured with the Bharat Ratna.

Who was MS Swaminathan?

  • Monkomb Sambasivan Swaminathan (MS Swaminathan) was born on August 7, 1925, in Kumbakonam, Madras Presidency (now Tamil Nadu).
  • He was an agronomist, agricultural scientist, plant geneticist, administrator, and humanitarian.
  • He was known as the ‘father of the Green Revolution’ in India.
  • Swaminathan began his career in 1949 researching the genetics of potatoes, wheat, rice, and jute.
    • He played a crucial role in developing high-yielding varieties of paddy that helped ensure India’s low-income farmers produced more yield.
  • Also known as the ‘father of economic ecology’ by the United Nations Environment Programme, he worked with agriculture ministers including C Subramaniam and Jagjivan Ram during the 1960s and 70s for the success of the ‘Green Revolution’ in India.
    • An initiative that paved the way for an exponential rise in the productivity of wheat and rice through the adaptation of chemical-biological technology.
  • Career: Swaminathan also held administration positions in various agricultural research laboratories.
    • He served as the director general of the Indian Council of Agricultural Research and International Rice Research Institute.
    • He also worked as the principal secretary of the Ministry of Agriculture in 1979.
    • Later, he also served as the President of the International Union of the Conservation of Nature and Natural Resources.
    • In 2004, Swaminathan was appointed as chairman of the National Commission on Farmers.
  • Awards and Recognition: He was awarded with the Ramon Magsaysay Award in 1971 and the Albert Einstein World Science Award in 1986.
    • He was awarded the first World Food Prize in 1987, following which he set up the MS Swaminathan Research Foundation in Chennai.
    • Swaminathan has also been conferred with the Padma Shri, Padma Bhushan, and Padma Vibhushan - the three most prestigious awards.
    • Apart from these, he was also given the H K Firodia Award, the Lal Bahadur Shastri National Award, and the Indira Gandhi Prize.
  • Swaminathan also contributed to various agricultural and environmental initiatives globally.
    • He was named one of the 20 most influential Asians of the 20th century by Time magazine.
  • He also served as a Member of Parliament in the Rajya Sabha from 2007 to 2013.
  • MS Swaminathan passed away in September 2023 at the age of 98.
  • His decision to focus on ensuring India's food security led him to become a key figure in the Green Revolution of the 1960s, which transformed India from a food-deficient nation to one of the world's leading agricultural producers.
    • His collaboration with Nobel laureate Norman Borlaug introduced high-yielding varieties of wheat and rice, saving millions from starvation.
  • Dr Swaminathan's transformative influence on Indian agriculture began to emerge when he championed the introduction of high-yielding crop varieties.
    • His visionary approach was instrumental in pioneering the Green Revolution in India when the country was still grappling with poverty and a lack of social security.
  • The impact of Dr. Swaminathan's efforts was nothing short of revolutionary.
  • India's food production skyrocketed, and the nation moved from a state of food scarcity to food self-sufficiency.
  • His work not only averted potential famines but also elevated the economic conditions of countless farming communities.

How MS Swaminathan Contributed to the Green Revolution?

  • MS Swaminathan was greatly influenced by Mahatma Gandhi's teachings of selfless service to the poor and the nation.
  • He was very much influenced by the 1943 Bengal famine, which killed up to three million people and realised the need to improve agriculture and food security in India.
  • After Swaminathan’s work on rice, he and other scientists worked on doing the same to enhance productivity for the wheat crop.
  • India had to get Norin dwarfing genes from Norman Borlaug in Mexico to enhance the productivity and adaptability of its wheat crops.
    • These genes, known for their ability to produce shorter wheat plants, were instrumental in the Green Revolution, as they helped increase yield potential and improve resistance to lodging (falling over) in wheat plants.
    • By acquiring these genes, India aimed to replicate the success of the Green Revolution and address food security challenges by boosting wheat production.
  • Norman Borlaug was an American scientist who was working on developing more productive crop varieties.
    • It led to him winning the Nobel Peace Prize in 1970 for his work in developing High Yielding Varieties (HYVs) of wheat.
  • Many researchers and scientists were involved in this work but there isn’t any doubt that the basic strategic vision underpinning the Green Revolution in India, introducing a new genetic strain or ‘plant type’ responsive to increased fertiliser and water application came from MS Swaminathan.
  • The problem with the traditional wheat and rice varieties was that they were tall and slender.
    • These ‘lodged’ – fell flat on the ground — when they grew and their heads were heavy with well-filled grains produced in response to high fertiliser doses.
    • Through Swaminathan’s research on rice, a reduction in plant height was sought to make them less lodging-prone but this was not easy to do.
  • His strategy of developing semi-dwarf wheat varieties using mutagenesis exposing plants to chemicals or radiation to introduce desirable modifications in their DNA did not, however, work.
    • The lowering of plant heights led to a simultaneous reduction in the size of the grain-bearing panicles or earheads.
  • The search for an ideal variety led him to contact American scientist Orville Vogel.
    • He played a role in developing a ‘dwarf wheat’ called Gaines, which had a high yield.
    • It contained dwarfing genes from a dwarf wheat called the Norin-10.
  • Vogel agreed but was unsure of the wheat’s potential in the Indian climate and thus advised Swaminathan to approach Norman Borlaug, who had incorporated the same dwarfing genes through Vogel’s lines into his spring wheat varieties in Mexico that were better suited for India.
    • Borlaug also later visited India, after Swaminathan proposed so to the Indian Agricultural Research Institute, allowing for the wheat breeding programme to commence.
  • In 1963, they began a serious effort to breed dwarf wheat and within five years, this initiative led to what became known as the "Wheat Revolution."
    • Indira Gandhi, the then Prime Minister of India, released a special stamp to mark the achievement.

The Side Effects of the Green Revolution:

  • Despite its landmark role in achieving food sufficient in India, the Green Revolution has been criticised on multiple counts, such as:
    • Benefiting the already prosperous farmers as it was introduced in states with higher productivity.
  • Swaminathan recognised such issues as early as January 1968, addressing the Indian Science Congress at Varanasi.
  • He highlighted concerns about the rapid spread of a few high-yielding crop varieties replacing diverse local ones, leading to potential problems like soil degradation, desertification, excessive pesticide use, and unsustainable groundwater extraction.
    • Unfortunately, many of these concerns have materialised today.
  • He also lent his support to farmers as the head of the National Commission on Farmers from 2004-06, he recommended that the Minimum Support Price at which farmers sell their crops to the government should be at least 50 per cent more than the weighted average cost of production.
  • For his contributions, Swaminathan was awarded the first World Food Prize Laureate in 1987, for “developing and spearheading the introduction of high-yielding wheat and rice varieties into India during the 1960s when that country faced the prospect of widespread famine.
  • Wheat production doubled in just a few years, making the country self-sufficient and saving millions from extreme food deprivation.

Significance of Union Budget's Deep Tech & Research Funding (Indian Express)

  • 08 Feb 2024

Why is it in the News?

In her Interim Budget speech, Finance Minister Nirmala Sitharaman announced a Rs 1 lakh crore fund to provide long-term, low-cost or zero-interest loans for research and development.

Context:

  • Finance Minister, Nirmala Sitharaman in her Interim Budget speech, announced a Rs 1 lakh crore fund to provide long-term, low-cost, or zero-interest loans for research and development.
  • A new scheme to strengthen deep-tech capabilities in the defence sector that is likely to be followed up later was also announced.
  • The separate announcements on the fund and defence deep tech are intricately linked and must be seen together with the government’s other plans for the R&D sector.

What is Deep Tech?

  • Deep tech refers to advanced and disruptive technologies, many of which are still under development, that have the potential to trigger transformative change and provide solutions for the future.
  • The term is used to describe cutting-edge research in nanotechnology, biotechnology, material sciences, quantum technologies, semiconductors, artificial intelligence, data sciences, robotics, 3D printing, etc.

What are the Advantages of Deep Tech?

  • These technologies are expected to play a key role in addressing complex global challenges like climate change, hunger, epidemics, energy access, mobility, physical and digital infrastructure, and cyber security including:
  • Economic Implications: Advanced capabilities in deep tech are also likely to enhance productivity drive economic growth create jobs in coming years, and offer a competitive advantage to countries with strong foundations in these areas.
  • Opportunities for India: With its large base of relatively high-quality science and engineering manpower and a fairly well-established technology culture, India feels it is well-placed to be one of the frontrunners in these areas.
  • Potential Benefits: There is scope to contribute to the development of these technologies, which can ensure early adoption, shares in intellectual property, indigenous know-how, and self-reliance.
    • Major associated benefits in terms of spin-off technologies, trained manpower, entrepreneurship and technology exports can accrue as well.

Initiatives by the GOI to Build a Deep Tech Ecosystem

  • Over the past few years, the government has tried to incentivise research in some of these areas by setting up a National Mission on Transformative Mobility and Battery Storage and, more recently, a National Quantum Mission.

National Mission on Transformative Mobility and Battery Storage:

  • This mission is aimed at fostering innovation in the mobility and energy storage sectors.
    • The government encourages research and development in electric vehicles, advanced battery technologies, and sustainable mobility solutions through focused platforms and financial incentives.
    • It targets challenges related to environmental sustainability and energy efficiency.

National Quantum Mission:

  • Recognizing the transformative potential of quantum technologies, the government has initiated the National Quantum Mission.
    • This effort concentrates on promoting research and development in quantum computing, communication, and sensing.
    • Quantum technologies hold promise for revolutionizing various industries, and the mission aims to position India as a leader in global quantum advancements.

National Deep Tech Startup Policy (NDTSP):

  • In addition to mission-oriented strategies, the government has devised a policy framework to create a conducive environment for deep tech companies.
    • The NDTSP addresses specific challenges faced by technology startups and aims to nurture a thriving ecosystem for their growth.
    • Currently awaiting government approval, it embodies a comprehensive approach to cultivating a vibrant deep-tech startup ecosystem in India.
  • Objectives and Key Components of NDTSP: The NDTSP is designed to achieve several objectives, including:
    • Competitiveness: Fostering innovation to enable startups to compete globally.
    • Collaboration: Facilitating partnerships between startups and international counterparts.
    • Incentives: Providing appropriate incentives for companies investing in innovation and research.

The policy outlines key components to achieve its goals, such as:

  • Funding Opportunities: Creating avenues for long-term funding to support sustained innovation.
  • Intellectual Property Rights: Establishing a simplified yet robust intellectual property rights regime.
  • Tax Incentives: Offering tax incentives to encourage investment in deep tech startups.
  • Regulatory Framework: Developing a conducive regulatory environment to streamline operations.
  • Standards and Certifications: Establishing standards and certifications to ensure quality and reliability.
  • Talent Nurturing: Focusing on nurturing talent through skill development and educational initiatives.
  • Industry-Academia Collaboration: Facilitating linkages between industry, research centres, and educational institutions to promote knowledge exchange.

The Challenge of Funding in Deep Tech Research:

  • Challenges in Research Funding Landscape: There's a persistent concern within the scientific community regarding the need for more research funding.
    • India's investment in research lags behind the global average, particularly in comparison to scientifically advanced nations that serve as direct competitors.
  • Disparity Between Targets and Actual Spending: For more than two decades, the Indian government has set a target of allocating at least 2% of the GDP for research and development.
    • Despite an increase in absolute spending, the proportion of GDP dedicated to research has dwindled in recent years.
    • Currently, India allocates a mere 0.65% of its national GDP to research and development activities, significantly below the global average of approximately 1.8%.

Government's Initiatives to Address the Funding Challenges:

  • Harnessing Public-Private Collaboration: Recent governmental directives reflect a recognition that significant boosts in research and development expenditure may only be attainable through effective partnerships with the private sector.
    • Initiatives are underway to forge synergies among industry, research laboratories, and educational institutions, aimed at bolstering both research activities and the financial resources available to support them.
  • Introduction of the National Research Foundation (NRF): The establishment of the National Research Foundation (NRF), operational in recent times, stands as a key component of this strategy.
    • With an objective to tackle the funding hurdle, the NRF is set to procure approximately 70% of its Rs 50,000 crore allocation over the next five years from the private industry.
    • This collaborative model is envisioned to cultivate a more sustainable and resilient ecosystem for deep tech research and development in India.

The 1 Lakh Crore Fund: Anticipations, Enthusiasm, and Doubts:

  • Anticipations: The provision of a Rs 1 lakh crore fund for financing research and development is deemed crucial in fortifying the research landscape.
    • This fund holds particular promise for startups and private sector ventures in need of initial funding to kickstart their projects.
    • Anticipations are high that these initiatives will gain momentum with the injection of funds.
  • Enthusiasm and Doubts: While the government expresses optimism regarding the potential impact of this substantial fund, there exists scepticism within the scientific community.
    • Past expectations of significant private sector contributions to research have not materialized, leading to uncertainties and reservations among researchers.
    • Scientists argue that there's an imbalance in expectations, with excessive reliance on the private sector without a corresponding increase in government funding.
    • The unpredictability and inadequacy of private-sector financing present significant challenges.
    • Currently, the government appears to heavily rely on the success of its new funding initiatives for research.
  • However, the budgetary allocations for science and research departments in the Interim Budget show only nominal increases.

Conclusion

  • The recent initiative promises startups and other private sector ventures access to seed funding, offering potential benefits for their projects, yet, to boost R&D expenditure, fostering deeper partnerships with the private sector is essential. Initiatives are underway to enhance collaboration among industry, research laboratories, and educational institutions, aiming to diversify research activities and amplify available funding.

Public Examinations (Prevention of Unfair Means) Bill, 2024 (Indian Express)

  • 06 Feb 2024

Why is it in the News

The Public Examinations (Prevention of Unfair Means) Bill, 2024, was introduced in Lok Sabha on 5th Feb which aims to prevent “unfair means” in order to “bring greater transparency, fairness and credibility to the public examinations system”.

Context:

  • The Centre recently tabled the draft of the Public Examinations (Prevention of Unfair Means) Bill, 2024 in Parliament.
  • This legislative proposal aims to prevent unfair means in public examinations and common entrance tests held across the country.
  • In a bid to tighten the noose on public examinations, the proposed law provides for punishment, including imprisonment, in instances of malpractice in these tests.
  • The Bill serves as a model draft for states to adopt at their discretion, aiding them in preventing criminal elements from disrupting the conduct of their state-level public examinations.
  • At present, there is no specific substantive law to deal with unfair means adopted or offenses committed by various entities involved in the conduct of public examinations by the Central Government and its agencies.
  • Therefore, it is imperative that elements that exploit vulnerabilities of the examination system are identified and effectively dealt with by a comprehensive Central legislation.

Which Exams are “Public Examinations” as Defined in the Bill?

  • Under Section 2(k) of the Bill, a “public examination” is defined as any examination conducted by a “public examination authority” listed in the Schedule of the Bill, or any “such other authority as may be notified by the Central Government”.
  • The schedule lists five public examination authorities:
    • (i) the Union Public Service Commission (UPSC), which conducts the Civil Services Examination, Combined Defence Services Examinations, Combined Medical Services Examination, Engineering Services Examination, etc.;
    • (ii) the Staff Selection Commission (SSC), which recruits for Group C (non-technical) and Group B (non-gazetted) jobs in the central government;
    • (iii) the Railway Recruitment Boards (RRBs), which recruit Groups C and D staff in the Indian Railways;
    • (iv) the Institute of Banking Personnel Selection (IBPS), which hires at all levels for nationalized banks and regional rural banks (RRBs); and
    • (v) National Testing Agency (NTA), which conducts the JEE (Main), NEET-UG, UGC-NET, the Common University Entrance Test (CUET), etc.
  • Apart from these designated public examination authorities, all “Ministries or Departments of the Central Government and their attached and subordinate offices for recruitment of staff” will also come under the purview of the new law.
  • The central government can add new authorities in the schedule through a notification as and when required.

What is Meant by the Use of “Unfair Means” in an Examination?

  • Section 3 of the Bill lists at least 15 actions that amount to using unfair means in public examinations “for monetary or wrongful gain”.
  • These acts include:
    • Leakage of question paper or answer key or part thereof and colluding in such leakage;
    • Accessing or taking possession of question paper or an Optical Mark Recognition response sheet without authority”;
    • Tampering with answer sheets including Optical Mark Recognition response sheets.
    • Providing solution to one or more questions by any unauthorized person during a public examination, and
    • Directly or indirectly assisting the candidate” in a public examination.
  • The section also lists:
    • Tampering with any document necessary for short-listing of candidates or finalizing the merit or rank of a candidate.
    • Tampering with the computer network or a computer resource or a computer system.
    • Creation of a fake website” and “conduct of fake examination, issuance of fake admit cards or offer letters to cheat or for monetary gain” as illegal acts.

What Punishment does the Proposed Law Provide for Violations?

  • Section 9 of the Bill states that all offenses shall be cognizable, non-bailable, and non-compoundable — which means that an arrest can be made without a warrant and bail will not be a matter of right; rather, a magistrate will determine whether the accused is fit to be released on bail.
    • A non-compoundable offense is one in which the case cannot be withdrawn by the complainant even when the complainant and the accused have reached a compromise, and a trial must necessarily follow.
  • Punishment for “any person or persons resorting to unfair means and offenses” can be three to five years in prison, and a fine up to Rs 10 lakh.
    • If the convict fails to pay the fine, “an additional punishment of imprisonment shall be imposed, as per the provisions of the Bharatiya Nyaya Sanhita, 2023,” Section 10(1) of the Bill says.
  • Under Section 10(2), a service provider who is engaged to provide “support of any computer resource or any material, by whatever name it may be called” for the conduct of the examination can be fined up to Rs 1 crore, along with other penalties.
  • The Bill provides for harsher punishment in cases of organized paper leaks, where “organized crime” is defined as unlawful activity by a group of persons colluding in a conspiracy “to pursue or promote a shared interest for wrongful gain in respect of a public examination”.
  • Section 11(1) says the punishment for organized crime will be “imprisonment for a term not less than five years but which may extend to ten years” and a fine “which shall not be less than one crore rupees”.

Why has the Government Brought this Bill?

  • In recent years, there has been a significant rise in cases of question paper leaks during recruitment exams nationwide.
    • An investigation uncovered at least 48 instances of paper leaks across 16 states over the past five years, disrupting the hiring process for government jobs and affecting approximately 1.51 crore applicants for about 1.2 lakh posts.
  • The Statement of Objects and Reasons of the Bill highlights that malpractices in public examinations lead to delays and cancellations, adversely affecting millions of youth.
    • Currently, there is no specific substantive law addressing unfair means or offenses committed during these examinations.
    • It is crucial to identify and effectively deal with elements exploiting vulnerabilities in the examination system through comprehensive Central legislation.
  • The primary objective of the Bill is to enhance transparency, fairness, and credibility in public examination systems, ensuring that sincere efforts of youth are duly rewarded and their future is secure.
    • It aims to deter individuals, organized groups, or institutions from engaging in unfair practices that undermine the integrity of public examinations for monetary or wrongful gains.
  • The Bill explicitly states that candidates, as defined within its scope, will not be subject to its provisions and will continue to be governed by existing administrative provisions of the relevant public examination authority.
  • Once enacted, the Bill will also serve as a model draft for states to adopt at their discretion.
    • This provision is expected to assist states in preventing criminal elements from disrupting the conduct of their state-level public examinations.

How to restore WTO’s authority (Indian Express)

  • 05 Feb 2024

Why is it in the News

Since the end of 2019, WTO’s crown jewel, the appellate body (AB) stands crippled because the US has single-handedly blocked the appointment of new members.

Context:

  • The 13th ministerial meeting of the World Trade Organization (WTO) is scheduled in Abu Dhabi, presenting a chance to tackle the persistent crisis in the Dispute Settlement Mechanism (DSM).
  • The effectiveness of WTO's key component, the DSM, has diminished since late 2019, mainly due to the United States obstructing the appointment of new Appellate Body (AB) members.
  • Despite the implications of this crisis, there exist specific options for developing countries that could offer potential solutions to rejuvenate the DSM.

What is the World Trade Organization (WTO)?

  • The WTO is an international institution responsible for overseeing global trade rules among nations.
  • With 164 member countries (including Liberia and Afghanistan, the most recent additions in 2016) and 25 observer countries and governments, it officially commenced operations on January 1, 1995, replacing the 1948 General Agreement on Tariffs and Trade (GATT) in accordance with the 1994 Marrakesh Agreement.

Organizational Structure:

  • The highest authority within the WTO is the Ministerial Conference, comprising all member states, typically meeting biennially with a consensus-driven decision-making approach.
    • Daily operations are managed by three bodies, sharing the same membership:
  • General Council:
    • Functions as the primary decision-making body.
    • Convenes as the Dispute Settlement Body (DSB) when addressing disputes between WTO members.
  • Dispute Settlement Body (DSB):
    • Empowered to establish dispute settlement panels.
    • Refers matters to arbitration.
    • Adopts reports from panels, Appellate Body, and arbitration.
    • Monitors the implementation of recommendations and rulings, authorizing concession suspension in cases of non-compliance.
    • Exclusive authority to make decisions, while panels and the Appellate Body can only offer recommendations.
  • Trade Policy Review Body:
    • Operates with terms of reference distinct from the General Council and DSB.
    • Assesses the trade policies of member countries through periodic reviews.
    • This structure ensures effective governance and dispute resolution within the WTO framework, emphasizing consensus in decision-making processes.

The Importance of the Appellate Body (AB):

  • Enforceable Decision-Making:nThe Appellate Body (AB) holds the authority to review and, if necessary, overturn legal findings and interpretations by WTO panels.
    • This enforceable nature ensures a conclusive resolution to trade disputes, fostering stability and predictability in international trade relations.
  • Mandatory Jurisdiction: The AB's jurisdiction spans all WTO member countries, creating a mandatory framework for resolving disputes.
    • Member nations are obligated to participate in the AB process, reinforcing the foundation of a rules-based international trading system.
  • Advocacy for Equitable Practices: By addressing disputes and upholding compliance with WTO rules, the AB contributes to the promotion of fair and equitable trade practices.
    • This approach establishes a level playing field for both developed and developing nations, supporting inclusivity and sustainable economic growth.

Challenges in the Dispute Settlement Mechanism (DSM):

  • Appellate Body's Paralysis: Since late 2019, the AB, integral to the DSM, has been practically non-functional due to the blockage of new member appointments, primarily led by the United States dissatisfied with previous dispute outcomes.
    • This obstruction erodes the binding nature of the dispute resolution process, creating a legal void.
  • Evasion of Compliance: With the AB inoperable, countries have found a loophole to evade compliance with WTO panel rulings.
    • Nations can appeal into the void, rendering the DSM ineffective and contradicting its purpose of providing a binding and enforceable resolution to trade disputes.
  • Prolonged Dispute Resolution: The absence of a functioning AB leads to delays in resolving trade disputes.
    • Without a binding appellate process, disputes may linger, contributing to economic uncertainties and potential retaliatory actions among trading partners.
  • Undermining Rules-Based Trade: The DSM crisis jeopardizes the concept of a rules-based international trading system.
    • The inability to enforce agreed-upon rules diminishes predictability and stability crucial for global economic growth through trade.

Potential Measures for Developing Countries to Sustain a Functional Two-Tiered DSM:

  • Participation in the European Union-led MPIA: Developing countries can explore joining the European Union-led multi-party Interim Appeal Arbitration Arrangement (MPIA) as an initial option.
    • This arrangement formalizes the arbitration mechanism already available under the WTO, providing appellate review for panel reports.
    • However, the MPIA's voluntary nature poses challenges, leading to ad hoc tribunals and limited adoption of awards by all WTO members.
  • Creation of a Restricted AB with Limited Powers: Considering the opposition to the AB by the United States, an alternative is formulating a diluted AB with constrained powers.
    • Limiting the AB's authority in various ways, such as deference to parties in dispute and non-persuasive value of rulings, may be explored.
    • However, a diluted AB could contradict the intended role of the DSM in providing security and predictability to the multilateral trading regime.
  • Resurrecting the AB with an Opt-Out Provision: Scholars Robert Howse and Wenhua Ji propose resurrecting the AB with a critical modification—allowing countries to opt out of compulsory AB jurisdiction.
    • Countries opting out would be excluded from participating in the appellate process, settling disputes solely through a single-tier panel jurisdiction.
  • Critics express reservations about altering the intrinsic nature of a two-tier binding DSM but acknowledge the need to safeguard the AB's integrity.

Conclusion

In addressing the WTO DSM crisis, developing countries, including India, confront a complex decision-making process.

While restoring the AB to its original form is ideal, the suggested resurrection with an opt-out provision offers a pragmatic compromise, recognizing challenges while preserving the AB's legitimacy.

As WTO member countries gather in Abu Dhabi, the way forward requires thoughtful consideration of trade-offs to balance DSM effectiveness with accommodating diverse interests in the global trade landscape.

Navigating the Risks and Benefits Associated with Internationalisation of Government Bonds (The Hindu)

  • 03 Feb 2024

Why is it in the News?

There is a serious underestimation of the risks involved in the internationalisation of bond markets and currencies of emerging economies.

Context:

  • In recent times, there have been noticeable changes in the global financial landscape, specifically regarding the inclusion of government bonds from emerging economies in global indices.
  • It is crucial to evaluate the actions taken by J.P. Morgan, Bloomberg, and FTSE Russell in incorporating Indian local currency government bonds (LCGBs) into global indices amidst these developments.
  • Exploring the reasons behind these moves and understanding the potential advantages and risks associated with such initiatives is essential.

J.P. Morgan's Influence on India's Financial Landscape:

  • The inclusion of Indian local currency government bonds (LCGBs) in J.P. Morgan's Government Bond Index-Emerging Markets (GBI-EM) Global index suite in September 2023 marked a significant milestone.
  • This step not only underscored India's financial stature but also raised expectations within the Indian financial sector.
  • It spurred interest from other major index providers such as Bloomberg-Barclays and FTSE Russell.
  • Subsequently, Bloomberg Index Services announced in January 2024 that India's fully accessible route (FAR) bonds would be incorporated into the Bloomberg Emerging Market Local Currency Index, further bolstering this trend.
  • All eyes are now on FTSE Russell, highlighting the increasing influence and anticipation of reforms in India's government bond market.

What is the Process of Opening Local Bond Markets?

  • Opening local bond markets to foreign investors is a strategic move by emerging economies to bolster their global financial integration.
  • In India, this journey began in 2019 and gained momentum by 2020 with the introduction of the fully accessible route (FAR).
  • Despite facing challenges like delays due to government policies on capital gains taxes and local settlement, the core policy remained unchanged, showcasing a dedication to promoting global financial inclusivity.

Advantages of Internationalising Bond Markets:

  • Reduced Reliance on Domestic Institutions: By integrating local currency government bonds into global indices, emerging economies like India aim to lessen their dependence on domestic financial institutions.
    • This diversified funding base can contribute to financial stability.
  • Stability in Funds Tracking Indices: Inclusion in global indices can result in a more stable inflow of funds, as funds tracking indices typically have a longer investment horizon compared to short-term speculative flows.
    • This stability can help mitigate volatility in local financial markets, providing a secure environment for both domestic and foreign investors.
  • Lower Cost of Public Borrowing: Increased demand for local currency government bonds from global investors may lead to a decrease in domestic interest rates.
    • As a result, the cost of public borrowing for the government can decline.
  • Relief for Local Financial Institutions: Higher participation by foreign investors in local bond markets can alleviate the balance sheets of local financial institutions holding these bonds.
    • This increased liquidity may encourage more lending and private investment.
  • Mitigation of "Original Sin": Bond market internationalization helps mitigate the "original sin" problem faced by emerging economies, where they are unable to borrow internationally in their currencies.
    • By issuing bonds in their currencies, these countries shift the exchange rate risk onto international lenders, potentially avoiding widespread private insolvencies during sharp currency declines.

Risks Involved with Internationalising Bond Markets:

  • Loss of Control and Heightened Interest Rate Risks: Internationalizing bond markets poses the risk of losing control over long-term interest rates, leaving emerging economies more vulnerable to global interest rate fluctuations.
    • This can negatively impact domestic bond markets and overall economic stability.
  • Exchange Rate Volatility and Spillover Effects: Increased participation by foreign investors exposes local currency bond markets to exchange rate volatility.
    • During periods of global risk aversion or liquidity challenges, adverse spillover effects can occur, as seen in events like the Lehman collapse in 2008 and recent shifts in U.S. monetary policy.
  • Volatility in Inflows of Local Currency Bonds: Instances such as the rapid exit of investors from local currency assets in Malaysia during 2014-15 and the total withdrawal of foreigners from the bond market in Türkiye since Spring 2018 underscore the unpredictability of capital flows.
    • These sudden stops and exits can lead to large reserve losses and currency declines, highlighting the potential for rapid market fluctuations.

Efforts by the Inter-Departmental Group (IDG) and RBI to Integrate Government Bonds into Global Indices:

  • Indian LCGBs Integration into Global Indices: The RBI's journey towards internationalization commenced in October 2022 with an Inter-Departmental Group (IDG) report outlining efforts to integrate Indian local currency government bonds (LCGBs) into global indices.
  • Diversification of Funding Channels: The inclusion of Indian LCGBs in global indices aims not only to attract foreign capital but also to diversify funding sources, reducing reliance on domestic institutions and tapping into large international resources.
  • Stability Enhancement and Investment Allocation: The IDG report highlights the potential benefits of LCGB inclusion in global indices, such as enhancing the stability of funds tracking these indices.
    • This stability can foster a more predictable investment environment, attracting long-term investors and improving investment allocation within the Indian financial market.
  • Rupee Internationalization Beyond Bonds: Integrating LCGBs into global indices is just one aspect of a broader effort to internationalize the Indian rupee, as outlined in the IDG report.
    • Another crucial component involves allowing banking services in the rupee (INR) outside the country.

Moving Forward:

  • Striking a Delicate Balance: While the opening of local bond markets presents abundant opportunities, it necessitates careful balancing.
    • Countries must balance the attraction of foreign capital with the management of potential risks.
  • Drawing from Past Experiences: The experiences of Malaysia and Türkiye offer valuable lessons, emphasizing proactive management of offshore markets to prevent excessive speculation and maintain currency stability.
    • These lessons underscore the importance of regulatory vigilance, timely interventions, and a balanced approach to fostering internationalization while preserving macroeconomic stability.

Conclusion

The process of opening local bond markets marks a crucial stride for emerging economies aiming for deeper integration into the global financial realm.

Recent developments involving J.P. Morgan, Bloomberg, and FTSE Russell underscore the growing recognition of India's financial market potential.

As India embarks on this journey, it must adeptly navigate complexities, carefully weigh risks and benefits, and adapt to the evolving global financial landscape for enduring success and stability.

Hybrid Vehicles Could be a Cleaner Solution for India than EVs for the Next Decade (Indian Express)

  • 31 Jan 2024

Why is it in the News?

Calculations by HSBC Research show overall carbon emissions are lower in hybrids compared to electrics. India's electric mobility plan is currently focused on battery electrics. But as global examples show, there are challenges to the wider adoption of EVs in India.

Context:

  • HSBC Research recommends India prioritize hybrid vehicles as a crucial step towards full electrification over 5-10 years.
  • Hybrid cars offer lower emissions compared to traditional and electric vehicles, with emissions likely to converge within a decade.
  • Combining internal combustion engines with onboard electric motors, hybrids provide a balanced propulsion approach.
  • This strategy aligns with India's sustainability goals, bridging the gap towards complete electrification in transportation.

Why does Hybrid Vehicles are a Good Medium-term Solution?

  • Hybrid vehicles are an effective medium-term solution for India's transportation needs as it progresses towards full electrification.
  • Hybrids, along with compressed natural gas cars, offer practical advantages over the next 5-10 years.
  • They are deemed critical not only for cost-effectiveness but also for India's decarbonization efforts.
    • Hybrids emit 133 g/km of total (well-to-wheel) carbon emissions, compared to 158 g/km for electric vehicles, making hybrids at least 16% less polluting.
  • This analysis factors in not just tailpipe emissions but also considers emissions from vehicle operations (tank-to-wheel) and the entire lifecycle, including crude mining, refining, and power generation.

For How Long Is This Situation Expected to Hold?

  • The convergence of emissions between electric vehicles (EVs) and hybrids is anticipated within 7-10 years.
    • Currently, in India, non-fossil fuel sources account for 26% of power generation, with a blended emission rate of 716g/kWh.
    • The emissions from hybrid cars and EVs will align once non-fossil fuel power generation in India reaches 44%.
  • Even with a projected 40% share of non-fossil fuels by 2030, hybrids are predicted to emit 8% less than EVs, although this reduction will be half of the current 16%.

What are the Challenges Faced by Battery Electric Vehicles (BEVs)?

The global push for battery electric vehicles (BEVs) faces several challenges:

  • Upfront Subsidy: BEV adoption, as seen in Norway, the US, and China, heavily relies on state subsidies.
    • However, in countries like India, direct subsidies often benefit middle or upper-middle-class buyers, raising equity concerns.
  • Charging Infrastructure: Investing in charging networks, as demonstrated by Norway and China, significantly boosts EV adoption.
    • However, India's charging infrastructure lags, with only about 2,000 operational public charging stations, posing a challenge, especially considering the dominance of two- and three-wheelers.
  • Electricity Source: Unlike countries with renewable-heavy grids, India largely relies on coal-fired plants.
    • This raises questions about the environmental benefits of EVs and highlights the need for cleaner energy generation.
  • Value Chain: India's reliance on lithium-ion batteries exposes the vulnerability in the global supply chain, primarily dominated by a few countries.
    • Diversification strategies are crucial to mitigate risks and ensure sustainable battery production.

What are the Difference Between Hybrid and Electric Vehicles?

  • Hybrid Vehicles: Hybrid vehicles utilize a combination of an internal combustion engine (usually gasoline-powered) and an electric motor.
    • These vehicles can operate on both gasoline and electricity, either separately or in tandem.
    • The environmental impact of hybrid vehicles is typically lower than that of traditional gasoline-powered vehicles due to their ability to switch to electric power, reducing fuel consumption and tailpipe emissions.
    • However, they still rely partially on fossil fuels and produce emissions during combustion.
  • Electric Vehicles: Electric vehicles (EVs) are powered solely by electricity stored in batteries.
    • They produce zero tailpipe emissions, making them cleaner and more environmentally friendly than hybrid vehicles and traditional internal combustion engine vehicles.
      • However, the overall environmental impact of EVs depends on factors such as the source of electricity generation.
    • If the electricity comes from renewable sources like solar or wind, EVs can have a significantly lower environmental footprint compared to hybrid vehicles.

Does Electric Vehicles Pollute More than Hybrid Vehicles?

It's not accurate to say that electric cars pollute more than hybrid cars in general. However, there are specific contexts where electric cars might appear to have a higher environmental impact than hybrids.

  • One such context is during the manufacturing process. Electric cars typically require large batteries, which involve the extraction of raw materials like lithium and cobalt.
    • The extraction and processing of these materials can result in environmental degradation and pollution.
    • Additionally, the manufacturing process for electric cars may require more energy compared to hybrid vehicles.
  • Another factor is the source of electricity used to charge electric cars.
    • If the electricity comes from fossil fuels like coal or natural gas, then the overall environmental impact of electric cars may be higher than that of hybrids, which can partially rely on gasoline.
    • However, as renewable energy sources like solar and wind power become more prevalent, the environmental benefits of electric cars increase significantly.
  • In terms of operational emissions, electric cars produce zero tailpipe emissions, while hybrids emit pollutants when running on gasoline.
    • However, hybrids still produce fewer emissions than traditional gasoline-powered vehicles.

What About Other “Clean Vehicles”?

  • Apart from electric cars, hydrogen fuel cell vehicles offer another zero-emission alternative.
  • Unlike electric vehicles, which draw power from charging stations, hydrogen fuel cell cars generate electricity internally.
  • They utilize a fuel cell that combines hydrogen from an onboard tank with oxygen from the air, emitting only water vapour and warm air.
  • While hydrogen fuel cell cars hold promise for decarbonizing industries like aviation and shipping, they face challenges.
  • They are less common and pricier than electric cars, with lower energy efficiency.
  • Moreover, the environmental impact of hydrogen production varies: "green hydrogen" sourced from renewable energy is scarce, while most hydrogen is currently derived from "grey" or "blue" processes, which involve emissions or carbon capture complexities.

Conclusion

While hybrid vehicles offer a transitional solution, electric vehicles remain pivotal in reducing emissions. Overcoming challenges in charging infrastructure and energy sourcing is vital for maximizing their environmental benefits. Hydrogen fuel cell vehicles show promise but require significant advancements. A holistic approach, including innovation and policy support, is crucial for realizing the potential of clean mobility solutions.

 

 

The Indian government is currently drawing out an AI Mission that may soon head for Cabinet approval and could outlay more than Rs 10,000 crore. (Indian Express)

  • 27 Jan 2024

Why is it in the News?

To dissuade concerns that Europe is overregulating artificial intelligence (AI), which could stifle innovation in the bloc, the European Commission has released a set of rules to enable start-ups and other businesses to access hardware – such as supercomputers and computing capacity – for them to build large- scale AI models

Context:

  • To address concerns about excessive regulation stifling innovation in Europe, the European Commission has introduced rules allowing startups and businesses to access hardware, like supercomputers, to develop large-scale AI models.
  • This supports the EU's new AI Act, designed to promote trustworthy AI across the region.
  • India is also considering a similar initiative to provide computing capacity for startups, aiming to establish high-capacity data centres through a public-private partnership model.
  • Access to computing power is crucial for building advanced AI systems, alongside innovative algorithms and datasets, especially challenging for smaller businesses to obtain.

What is Artificial Intelligence (AI)?

  • Artificial Intelligence (AI) refers to the simulation of human intelligence processes by machines, particularly computer systems.
  • These processes include learning, reasoning, problem-solving, perception, and language understanding.
  • AI technologies enable machines to analyze large amounts of data, recognize patterns, and make decisions or predictions based on that data.
  • There are several types of AI, including narrow or weak AI, which is designed for specific tasks like speech recognition or playing chess, and general or strong AI, which aims to perform any intellectual task that a human can do.
    • Machine learning, a subset of AI, involves training algorithms to recognise patterns in data and make predictions or decisions without being explicitly programmed to do so.
  • AI has applications across various industries, including healthcare, finance, transportation, and manufacturing.
  • It is used for tasks such as medical diagnosis, fraud detection, autonomous vehicles, and predictive maintenance.
  • As AI technology continues to advance, it holds the potential to revolutionize many aspects of society, improving efficiency, productivity, and decision-making processes.

What is Europe’s AI Innovation Plan?

  • The European Commission has introduced a set of initiatives aimed at assisting European startups and small businesses in creating reliable AI technology.
  • These initiatives encompass various measures to foster innovation among startups, including a proposal to grant special access to supercomputers for AI startups and the wider innovation community. The plan includes:
    • Acquiring, upgrading and operating AI-dedicated supercomputers to enable fast machine learning and training of large general-purpose AI (GPAI) models.
    •  Facilitating access to the AI dedicated supercomputers, contributing to the widening of the use of AI to a large number of public and private users, including start-ups and SMEs.
    •  Supporting the AI startup and research ecosystem in algorithmic development, testing evaluation and validation of large-scale AI models.
    •  Enabling the development of a variety of emerging AI applications based on GPAI models.

How is the EU’s Plan Similar to India’s?

  • The Indian government is currently outlining an AI Mission, which is expected to undergo Cabinet approval soon, with a budget exceeding Rs 10,000 crore.
    • As part of this initiative, the government aims to develop its own 'sovereign AI,' enhance computational capabilities domestically, and provide compute-as-a-service to Indian startups.
    • Capacity building will be pursued both within the government and through a public-private partnership model, emphasizing India’s goal to capitalize on the forthcoming AI boom as a vital economic driver.
  • Overall, the country aims to establish a computing capacity ranging from 10,000 to 30,000 GPUs (graphic processing units) through the PPP model, in addition to 1,000-2,000 GPUs facilitated by the PSU Centre for Development of Advanced Computing (C-DAC).
    • The government is exploring various incentive structures for private companies to establish computing centres in the country, including capital expenditure subsidies, operational expense-based incentives, and a "usage" fee model.
  • The government intends to transform the GPU assembly into a digital public infrastructure (DPI), allowing startups to access its computational capacity at a reduced cost, without having to invest in GPUs, which are typically the largest expense in such operations.

Why is the EU especially enabling AI Innovation?

  • Until now, the most prominent advancements in AI have been spearheaded by American companies like OpenAI and Google, along with emerging ventures such as Perplexity and Anthropic.
  • Europe, which has traditionally prioritized regulating technologies with a focus on human rights, has faced criticism from the industry for potentially overregulating AI even before its widespread adoption across the continent.
    • Unlike the US, where numerous American companies have made significant strides in offering hardware services to businesses, Europe has identified a need to facilitate access to hardware resources for AI development.
  • This move by the European Commission follows the introduction of an AI Act last year, which has faced criticism.
    • The legislation aims to establish safeguards for AI usage within the EU, including clear guidelines for its adoption by law enforcement agencies and provisions empowering consumers to report any perceived violations.
    • Additionally, the AI Act imposes stringent restrictions on facial recognition technology and the use of AI to influence human behaviour, while also outlining severe penalties for companies found in breach of these regulations.
  • Moreover, the legislation stipulates that governments can employ real-time biometric surveillance in public areas only in cases involving serious threats, such as terrorist attacks.

European Commission (EC)

  • The European Commission is the European Union's executive body and represents the interests of Europe as a whole.
    • It drafts proposals for new European laws.
    • It manages the day-to-day business of implementing EU policies and spending EU funds.
  • It is made up of 27 commissioners (one from each member state) and is based in Brussels.
    • Each member state nominates a commissioner, but the nominated candidates must be approved by the European Parliament.
    • The Parliament must also approve the President of the European Commission.
  • The current President of the European Commission is Ursula von der Leyen.
  • Commissioners do not represent their countries. Instead, they have a field of responsibility.
  • To assist the commissioners in the performance of their duties, there is a staff of about 32,000 people employed by the Commission.
    • This staff comes from all of the Member States and includes policy officers, translators, lawyers and researchers.

What does the European Commission do?

  • Legislation – The Commission initiates legislation. It makes proposals for laws that are sent to the European Parliament and Council of the European Union for approval.
  • Upholding EU law – The Commission can take action against businesses or states that are failing to comply with EU law.
  • Policy – The Commission is the executive of the EU. It manages policies and drafts budgets.
  • Representation – The Commission represents the EU in negotiations with other countries or organisations.
  • The Commission meets once a week to adopt proposals, finalise policy papers and make decisions.
    • Decisions are taken by a simple majority vote.

Why Punjab moved SC against the expansion of BSF jurisdiction (Indian Express)

  • 24 Jan 2024

Why is it in the News?

The Supreme Court is set to hear the dispute over the expansion of the Border Security Force (BSF) jurisdiction in Punjab.

Context:

  • The Supreme Court will hear petitions filed by the Punjab government against the Centre’s notification expanding the jurisdiction of Border Security Forces (BSF) to 50 km from the international border in Punjab.
  • This comes after the Centre in 2021 decided to expand the BSF’s jurisdiction to undertake search, seizure and arrest within a larger 50-kilometre stretch from the International Border compared to the earlier limit of 15 kilometres.
  • The Centre had also decided to decrease the BSF’s area of operation in Gujarat from 80 kilometres from the border to just 50 kilometres.

What is the Border Security Force (BSF)?

  • The BSF was established on 1 December 1965 after the India-Pakistan war.
  • With a strength of about 2.65 lakh personnel, it has 192 operational battalions and deployed along the Pakistan and Bangladesh borders.
  • It is the country’s largest border force and one of the Central Armed Police Forces of the Union of India under the administrative control of the Ministry of Home Affairs (MHA).
    • The other forces include the Indo-Tibetan Border Police (ITBP), the Sashastra Seema Bal (SSB) and the Assam Rifles, Central Industrial Security Force (CISF), Central Reserve Police Force (CRPF) and National Security Guards (NSG).
  • It also contributes dedicated services to the UN peacekeeping Mission by sending a large contingent of its trained manpower every year
  • The BSF is meant to secure India’s borders with its neighbouring nations and is empowered to arrest, search and seize under a number of laws, such as the Criminal Procedure Code, the Passports Act, the Passport (Entry into India) Act, and the NDPS Act, to name a few.

Why was the BSF Jurisdiction Extended?

  • Section 139(1) of the BSF Act allows the central government, through an order, to designate an area “within the local limits of such area adjoining the borders of India” where members of the BSF can exercise powers to prevent offences under any Acts that the central government may specify.
    • Prior to the notification issued in October 2021, the BSF could exercise its powers within 15 kilometres of the border in Punjab, West Bengal and Assam.
    • The Centre expanded this to within 50 kilometres of the border.
  • The notification states that, within this larger 50-kilometre jurisdiction, the BSF can only exercise powers under the Criminal Procedure Code, the Passport (Entry into India) Act and the Passports Act.
    • For other central legislations, the 15-km limit remains.
  • This expansion was in response to the increased use of drones and Unmanned Aerial Vehicles, which have long-range capabilities and enable surveillance and the smuggling of arms and fake currency.
    • The ‘menace of cattle smuggling’ and smugglers often seek refuge outside BSF jurisdiction.
  • The centre also claimed that the notification makes the BSF jurisdiction uniform across states, as the 50-kilometre limit was already in place in Rajasthan.
    • The same notification reduced the jurisdiction in Gujarat from 80 km to 50 km.

Why Punjab Challenged This Act?

  • The state of Punjab filed an ‘original suit’ against the central government in the Supreme Court in December 2021 and alleged that the extension of the territorial jurisdiction of BSF encroaches upon its own constitutional jurisdiction.
    • The Supreme Court has ‘original jurisdiction’ in disputes between the central government and states under Article 131 of the Constitution, which means cases of this kind can only be heard for the first time at the SC “to the exclusion of any other court”.
  • The Punjab government claimed that expanding the jurisdiction of the BSF would compromise the state’s exclusive powers to legislate on matters involving the police and public order.
    • These powers are provided in Entries 1 and 2 of the State List under Article 246 of the Constitution.
    • They also claimed that the notification was issued without consulting with any of the states concerned.

How did Other States Respond?

  • The states at the time had decried the move as an “irrational decision”, a “direct attack on federalism” and an attempt to “interfere through Central agencies”.
  • Punjab and West Bengal denounced the move with the respective state Assemblies even passing resolutions against the Centre’s decision.

What are the Challenges Associated with Expanding Jurisdiction?

  • Public Order vs. Security of State: Maintaining public order and policing, signifying peace, safety, and tranquillity, falls within the purview of State Governments (Entry 1 and Entry 2 of the State list, respectively).
    • However, if a severe public disorder poses a threat to the security or defence of the State or the nation itself (Entry 1 of the Union list), it becomes a matter of concern for the Union Government as well.
  • Federalism Strain: Issuing notifications without state government concurrence may be seen as an infringement on state powers.
    • The Punjab Government argues that such notifications amount to the Centre encroaching under the pretext of security or development.
  • Impact on BSF Operations: The extension of jurisdiction to policing in the hinterland contradicts the role of a border guarding force.
    • This shift could potentially undermine the BSF's ability to fulfil its primary duty of guarding the international border.

Issues Specific to Punjab:

  • Overlapping Powers: The extended 50 km jurisdiction grants concurrent power with state police over every cognizable offence under the Indian Penal Code (IPC).
    • In a relatively small state like Punjab, this extension encompasses all major cities.
  • In other states like Gujarat and Rajasthan, where the extension might be considered, Gujarat has substantial marshland, and extending jurisdiction there might be reasonable as it doesn't encompass major urban centres.
    • Similarly, in Rajasthan, the presence of a desert reduces the impact of jurisdiction extension.

Way Ahead

  • Emphasis on State Consent: Considering the security dynamics in India's vicinity, the existing collaboration between Central armed forces and State civil authorities remains suitable.
    • Nonetheless, consulting with the State Government before deploying armed forces by the Union Government is recommended, whenever possible.
  • State Empowerment: Each State Government, in coordination with the Union Government, should devise both short-term and long-term strategies to fortify its Armed Police.
    • The aim is to achieve substantial self-reliance in managing Armed Police matters, necessitating the Central armed forces' intervention only during exceptionally severe disturbances.
  • Regional Collaboration: Neighboring States can collaboratively establish a framework for utilizing each other's Armed Police in times of necessity through consensus.
    • The Zonal Council stands out as the most apt platform for States within a zone to reach a consensus and formulate such arrangements.

WTO dispute settlement body revival faces delays over country differences: GTRI (Indian Express)

  • 22 Jan 2024

 

Why is it in the News?

Reinstating a fully functional WTO dispute settlement body to resolve trade disputes between countries could take longer than expected as there continue to be wide differences between developed and developing countries over the issue, a GTRI report said recently.

Context:

  • According to the GTRI report, an economic think tank, restoring a fully functional WTO dispute settlement body may take longer due to significant differences between developed and developing countries on the issue.
  • This comes as the 164-member World Trade Organization (WTO) will gather next month in Abu Dhabi for the 13th ministerial conference (MC) to resolve different issues such as reforms in dispute settlement mechanisms, agriculture-related matters, etc.

Highlights of the GTRI Report:

  • Escalating Protectionism: The absence of a functional dispute settlement body has fueled a surge in protectionist measures.
    • Since 2017, the US has obstructed the appointment of new judges to the WTO's seven-member appellate court, citing perceived harm to its interests.
  • Delicate Balancing Act: Addressing India's appeals for an effective appellate body, special and differential treatment (S&DT) provisions, and fairness must be delicately balanced with the concerns of other members.
    • This includes considerations such as transparency and legal certainty, demanding significant compromise and negotiation.
  • Complex Consensus Building: Reforming the dispute settlement system proves challenging as developed and developing nations hold divergent priorities and concerns.
    • Achieving a consensus requires navigating through intricate negotiations.
  • Disproportionate Impact on the US: The proper functioning of the WTO Appellate Body disproportionately affects the US, given that over a quarter of all WTO disputes involve challenges to US laws or measures.

What is the Global Trade Research Initiative (GTRI)?

  • Global Trade Research Initiative (GTRI) is a research Group focused on Climate Change, technology and trade
  • GTRI aims to create high-quality and jargon-free outputs for governments and industry from the perspective of development and poverty reduction.
  • Mr Ajay Srivastava is the Founder of GTRI.

What is the World Trade Organization?

  • The World Trade Organization (WTO) is an international organization that deals with the rules of trade between countries.
  • It was founded in 1995 as a successor to the General Agreement on Tariffs and Trade (GATT), which, since 1948, had governed trade rules until the establishment of the WTO.
  • The WTO describes its principal function as being to provide a forum for its members to negotiate on trade issues.
  • It operates a body of rules in the form of WTO agreements.
  • It provides a dispute settlement mechanism (DSM) to resolve disagreements over the rules between members.
  • The WTO has many roles:
    • It operates a global system of trade rules, acts as a forum for negotiating trade agreements, settles trade disputes between its members and it supports the needs of developing countries.
  • All major decisions are made by the WTO's member governments:
    • either by ministers (who usually meet at least every two years) or by their ambassadors or delegates (who meet regularly in Geneva).
  • Decision-making:
    • All major decisions within the WTO are made by its member governments.
    • The top decision-making body is the Ministerial Conference, which typically convenes every two years.
    • Day-to-day decisions are overseen by the General Council, which meets regularly in Geneva.
  • Membership
    • The WTO has over 160 members, representing 98% of world trade.
    • Joining the WTO requires aligning economic and trade policies with its rules and negotiating entry terms with the existing membership.
  • Budget:
    • The WTO derives most of the income for its annual budget from contributions by its members.
    • These contributions are based on a formula that takes into account each member's share of international trade.
  • Director-General:
    • Ngozi Okonjo-Iweala is the seventh Director-General of the WTO.
    • She took office on 1 March 2021, becoming the first woman and the first African to serve as Director-General.
    • Her term of office will expire on 31 August 2025.
  • The primary purpose of the WTO is to open trade for the benefit of all.

About the WTO Dispute Settlement Body (DSB):

  • The WTO Dispute Settlement Body (DSB) deals with disputes between WTO members.
  • It was created in Article 2 of the Dispute Settlement Understanding (DSU) administers World Trade Organization (WTO) dispute settlement proceedings.
  • The DSB consists of all WTO members, usually represented by Ambassadors or equivalent.
  • It makes decisions on trade disputes between governments that are adjudicated by the Organization.
  • The DSB has the sole authority to establish “Panels” of experts to consider the case and to accept or reject the Panels’ findings or the results of an appeal.
  • The DSB uses a special decision procedure known as "reverse consensus" or "consensus against" that makes it almost certain that the Panel recommendations in a dispute will be accepted.
  • The process requires that the recommendations of the Panel should be adopted "unless" there is a consensus of the members against adoption.
  • The DSB monitors the implementation of the rulings and recommendations and has the power to authorize retaliation when a country does not comply with a ruling.

Why is the WTO Dispute Settlement Body (DSB) Inoperative?

  • The WTO's dispute settlement system faces a critical challenge as its appeals mechanism is currently non-operational.
  • The root cause lies in the United States objection to the appointment of new judges to the Appellate Body, citing concerns about judicial overreach.
  • Consequently, a significant number of panel reports are left in limbo, with appeals going unanswered and disputes lingering without resolution.
  • This impasse creates a formidable obstacle for WTO members seeking to enforce their obligations through complaints against measures they perceive as violations.

Conclusion

The WTO's dispute resolution mechanism grapples with a formidable crisis, rendering it largely nonfunctional due to the U.S.'s opposition to new Appellate Body judges. This impasse leaves disputes unresolved, severely limiting members' ability to enforce obligations. As the organization grapples with this crisis, finding a resolution becomes paramount to restore the efficacy of international trade agreements and uphold the WTO's core principles.

The problem with India’s science management (The Hindu)

  • 20 Jan 2024

Why is it in the News?

As India remoulds its scientific establishment, the utility of scientists being given administrative tasks needs to be questioned.

Context:

  • Sustained economic progress which can satisfy national ambition is invariably fuelled by scientific advances translated into deployable technologies.
  • This has been the inevitable global experience since the onset of the Industrial Revolution.
  • The government is overhauling India’s science establishment, which includes setting up the new National Research Foundation (NRF) and restructuring the Defence Research and Development Organisation (DRDO).
  • In this scenario, a frank assessment of the current administrative ability to simultaneously optimise Indian science’s efficiency and resilience is necessary.

What are the Problems with India’s Scientific Advancement?

India has a long and rich history of scientific innovation. However, in recent years, the country's science management has come under increasing scrutiny. There are several problems with India's science management including:

  • Lack of Funding in Research and Development (R&D): One of the most pressing issues is a lack of funding.
    • India spends a relatively small percentage of its GDP on research and development, compared to other developed countries.
      • For instance, India allocates only about 0.7% of its GDP to R&D, a considerably lower figure compared to global leaders like the United States (3.5%) and China (2.4%).
    • This lack of funding has led to a brain drain of talented scientists, who are leaving India in search of better opportunities.
  • Budgetary Challenges: The modest commitment to R&D stems from broader budget constraints, competing priorities, and a historical emphasis on immediate socio-economic needs.
    • This presents a challenge in fostering a robust scientific ecosystem on a limited budget.
  • Lack of Coordination: Another problem with India's science management is a lack of coordination.
    • There are many different government agencies and departments that are involved in science and technology, but there is often a lack of communication and cooperation between them.
    • This can lead to duplication of effort and a waste of resources.
  • Inadequacies in Budget Allocation by Scientific Administration: The current scientific administration struggles to identify and invest in high-impact projects.
    • For instance, in 2022, the Indian Space Research Organisation ranked eighth in space launches, lagging in key technologies.
    • Similar setbacks are evident in nuclear energy, genomics, robotics, and artificial intelligence.
  • Lack of Strategic Planning and Execution: Beyond expenditure, the challenge extends to strategic planning and execution of scientific projects.
    • Failure to adapt swiftly to emerging technologies and allocate resources judiciously has resulted in India falling behind in crucial fields.
  • Inconsistent Long-Term Funding: A major concern is the absence of consistent long-term funding for vital projects, especially when faced with occasional setbacks.
    • Steady funding, despite occasional failures, is crucial for a resilient and effective scientific management system.
  • Finally, India's science management is often criticized for being too bureaucratic. The process of getting funding for research projects can be long and complex, and it can be difficult for scientists to get the support they need to succeed.

The Role of Senior Scientists in India’s Science Administration:

  • Diverse Responsibilities Impacting Focus: Senior scientists in India often juggle multiple responsibilities, including academic pursuits, administrative duties, and leadership positions.
    • This dispersion of focus can lead to inefficiencies and a lack of dedicated attention to critical administrative tasks.
  • Lack of Administrative Skills: The assumption that successful scientists can seamlessly transition into effective administrators overlooks the distinct skills required for scientific work versus administration.
    • Managing institutions, allocating resources, and making organizational decisions demand specific skills not necessarily possessed by accomplished scientists.
  • Insufficient Training for Administrative Roles: Inadequate training makes it challenging for scientists to excel in administrative roles.
    • Tasks like metric selection, conflict resolution, and setting priorities require skills not inherently developed through scientific training.
    • Administration involves translating policy into outcomes, a skill not typically prioritized in scientific training.
  • Conflicts of Interest and Quality Control Issues: The dual roles of scientists as academics and administrators can result in conflicts of interest within institutions.
    • Academic rivalries, bureaucratic challenges, and compromised quality control may emerge, leading to issues like plagiarism, unethical publication practices, and compromised scientific outcomes.
  • Nationwide Transfer System Absence: The absence of a nationwide transfer system for scientists and science administrators exacerbates issues such as competition and egotism.
    • The lack of mobility within the system can contribute to internal divisions and hinder the progress of scientific careers and projects.
  • Internal Control Challenges: Allowing individuals within the system to regulate it can lead to clear drawbacks, impacting the impartiality and effectiveness of science administration in India.

Challenges in India's Science Administration: A Historical Perspective

  • Concentration of High-End Equipment: Economic constraints post-independence led India to concentrate on high-end scientific equipment, notably in institutions like the IITs.
    • This concentration birthed gatekeepers, controlling access to critical resources and establishing a hierarchical structure where a few institutions wielded disproportionate influence.
  • Gatekeepers and Institutional Captures Concept: Over time, these gatekeepers solidified their positions, accumulating power, government support, and institutional control.
    • This system created an environment where young scientists navigated a complex web of influence, paying tributes to those controlling vital resources.
  • Impact on Scientific Careers: The gatekeeping system not only influenced resource access but also shaped career trajectories.
    • The nexus between institutional power and individual careers became pivotal, with appointments, awards, and international recognition often tied to maintaining favourable relations with gatekeepers.
  • Normalization of Unethical Practices: The gatekeeping system has normalized unethical practices within Indian science.
    • High plagiarism rates, paid publications in questionable journals, and undisclosed dealings for government funding have become ingrained, compromising the ethical standards of scientific research.
  • Stifling Genuine Scientific Outcomes: This erosion of ethical standards doesn't just compromise research quality but stifles genuine scientific outcomes.
    • Scientists in conflict with this system face hurdles, hindering promising careers and perpetuating a culture where personal connections often outweigh merit.

A Comparative Analysis of the U.S. Model and Indian Science Administration:

  • U.S. Model: In the U.S., scientists chosen for administrative roles are identified early in their careers and undergo targeted training for managerial tasks.
    • The emphasis is on maintaining a distinct separation between scientific pursuits and administrative responsibilities.
  • Indian Scenario: In contrast, India's science administration traditionally involves senior scientists taking up administrative roles without a clear separation between scientific and administrative functions.
    • This integrated approach poses challenges, as the skill sets needed for effective scientific research often differ significantly from those crucial for efficient administration.

Conclusion

As India pursues economic and strategic progress, challenges in science management hinder its research and development, causing a lag in innovation compared to other developed nations. To remedy this, increasing funding for research and development is crucial, along with enhancing coordination among government agencies and streamlining the funding process for research projects. By addressing these issues, India has the potential to emerge as a global leader in science and technology, bringing substantial benefits to its economy and society.

Resistance to medicines on the rise, Govt urges docs to mention reason when prescribing antibiotics (Indian Express)

  • 19 Jan 2024

Why is it in the News?

With antimicrobial resistance on the rise, the Union Health Ministry has urged doctors to write down the exact reason when prescribing antibiotics.

New Summary:

  • The Union Health Ministry urged all doctors in medical colleges and medical associations to make it a mandatory practice to "write indication/reason/justification" while prescribing antibiotics.
  • The Director General of Health Services also appealed to all pharmacists to strictly implement Schedule H and H1 of the Drugs and Cosmetics Rules and stop the over-the-counter sale of antibiotics.
  • Antimicrobials are listed under Schedule H and H1 of the Drugs and Cosmetics Act, both of which are categories of medicines that cannot be sold without a prescription.

What is Antimicrobial Resistance?

  • According to the World Health Organisation (WHO), antimicrobial resistance occurs when bacteria, viruses, fungi and parasites change over time and no longer respond to medicines.
  • This makes infections harder to treat, increasing the risk of disease spread, severe illness and death.
    • As a result, the medicines become ineffective and infections persist in the body, increasing the risk of spreading to others.
  • AMR affects countries in all regions and at all income levels.
    • Its drivers and consequences are exacerbated by poverty and inequality, and low- and middle-income countries are most affected as per WHO.
  • Currently, AMR is one of the top global public health threats facing humanity.
    • It is estimated that bacterial AMR was directly responsible for 1.27 million global deaths in 2019 and 4.95 million deaths were associated with drug-resistant infections.
  • According to the Indian Council of Medical Research (ICMR), 1.25 million lives were lost to drug resistance in 2019.
  • India has one of the highest rates of antimicrobial resistance worldwide.
    • Despite being prescription drugs, antibiotics are commonly available over-the-counter (OTC) at retail pharmacies.
  • In a recent survey, conducted by the National Centre for Disease Control (NCDC) under the Union Health Ministry, over half of the antibiotics prescribed in the country cause antimicrobial resistance.
  • Treatment failures also lead to longer periods of infectivity and the prohibitively high cost of second-line drugs may result in failure to treat these diseases in many individuals.

Scenarios in Which Antimicrobials are Most Commonly Misused?

  • There are two common scenarios in which antimicrobials are misused or overused even by doctors.
    • One is when they cannot make a diagnosis on whether an infection is caused by a bacteria or virus and prescribe antibiotics to err on the side of caution.
    • Two, when they know it is a bacterial infection but want to avoid secondary infection.
      • This is where antibiotics can be conserved because very few people get such secondary bacterial infections.
  • In the case of a serious patient, who is admitted to the hospital, broad-spectrum antibiotics may be prescribed for 48 hours, during which they can be tested for which pathogen is causing the infection.
    • The antibiotics needed to be switched after that.
  • Prescription for antimicrobials before and after a procedure or surgery is another way that antibiotics are commonly overused.
    • Just a single dose of antibiotic 60 to 120 minutes before surgery is enough to prevent surgical site infections.
  • However, doctors end up prescribing antibiotics for seven to 14 days.
    • If proper sterilization of equipment, and preparation of the surgical site are done, infections cannot happen.
    • Shaving the surgical site before surgery should be avoided because it can lead to abrasions that can get infected

The Result of Antimicrobial Overuse and Misuse?

  • Common infections are not curable anymore.
  • Tuberculosis and urinary tract infections have become multi-drug resistant.
  • In hospitals, infections are resulting in longer treatment times with the use of costlier and more toxic antibiotics.
    • Despite all efforts and successful surgeries, people are dying

Factors contributing to Antimicrobial Resistance (AMR):

  • Unnecessary Prescriptions: In many cases, antibiotics are prescribed when they are not necessary or are not used correctly.
    • This can lead to the survival and proliferation of resistant bacteria.
  • Agricultural use: The use and overuse of antimicrobials in agriculture, including to promote growth and prevent disease in livestock, is also a major contributor to the development and spread of AMR.
  • Selective pressure: In the presence of antimicrobials, microbes that carry resistance genes can survive, replicate, and quickly dominate the microbial population.
  • Mutation: Rapid microbial reproduction allows for swift-evolution, and mutations during replication may aid individual microbes in surviving antimicrobial exposure.
  • Inappropriate use: Unnecessary and injudicious use of antibiotic fixed dose combinations may lead to the emergence of bacterial strains resistant to multiple antibiotics.
  • State of the Environment: There is growing evidence that the environment plays a key role in the development, transmission and spread of AMR. Its proliferation is linked to the triple planetary crisis of climate change, nature and biodiversity loss, pollution and waste.
    • For example, higher temperatures, storms and floods can fuel the spread of bacterial, viral, parasitic, fungal and vector-borne diseases.
    • Severe weather events can also cause wastewater and sewage to overwhelm treatment plants, allowing untreated sewage rich in antimicrobial-resistant microbes to contaminate surrounding communities.
    • As well, wastewater laced with medicines, including that from animal production facilities, hospitals and pharmaceutical companies, can feed drug resistance.

Measures Taken by the Government of India to Address AMR:

  • National Action Plan on AMR: The National Action Plan on Containment of Antimicrobial Resistance (NAP-AMR) was launched in 2017.
    • Emphasis is placed on a One Health approach, involving various stakeholder ministries/departments.
  • AMR Surveillance and Research Network (AMRSN): ICMR has set up the AMR Surveillance and Research Network (AMRSN) comprising 30 tertiary care hospitals, both private and government.
    • Its purpose is to generate evidence and capture trends and patterns of drug-resistant infections in the country.
  • Research and International Collaboration: Initiatives by ICMR aim to develop new drugs and medicines through international collaborations.
    • This is intended to strengthen medical research in the field of AMR.
  • Red Line Campaign: The Union health ministry initiated the "Red Line Campaign."
    • It urges people not to use medicines marked with a red vertical line, including antibiotics, without a doctor’s prescription.
    •  The campaign aims to discourage unnecessary prescription and over-the-counter sales of antibiotics, addressing drug resistance for diseases like TB, malaria, urinary tract infections, and HIV.

Way Forward

  • Antimicrobials have saved countless lives and are essential to modern medicine but we need to use them more judiciously.
  • Healthcare professionals should only prescribe antibiotics when necessary and at the right dosage and duration.
  • The use and overuse of antibiotics in agriculture must also be limited.
  • Countries must adopt the One Health approach, which recognizes that the health of people, animals, plants and the environment are interdependent.
  • Preventative measures, such as improving water, sanitation and hygiene, as well as putting in place strong international and national regulatory frameworks to enforce controls on the sale and distribution of antibiotics, will go a long way in reducing AMR.

Conclusion

AMR is a global problem; therefore, international cooperation among nations is essential. Developing multi-stakeholder national action plans is key. Countries must also work together on strategies, information sharing and surveillance of antimicrobial use and resistance. However, fixing the AMR crisis is not just dependent on governments alone. Pharmaceutical companies, the chemical industry, regulators, municipal governments, human and animal healthcare professionals and students, scientists and the public all have a role to play.

Govt disburses Rs 4,415 crore under PLI scheme; low job creation a concern (Indian Express)

  • 18 Jan 2024

Why is it in the News?

Recently, the central government has disbursed an incentive amount of Rs 4,415 crore under its flagship Production-Linked Incentive (PLI) schemes for as many as eight sectors.

News Summary:

  • The central government, through its flagship Production-Linked Incentive (PLI) schemes, has disbursed an incentive amount of Rs 4,415 crore until October in the current fiscal year across eight sectors.
    • In the fiscal year 2023-24, Rs 1,515 crore has been disbursed, compared to Rs 2,900 crore in 2022-23 when payments under the scheme commenced.
  • The government aims to achieve a disbursal target of Rs 11,000 crore by the end of this fiscal year.
    • According to official statements, the employment generation, both direct and indirect, has exceeded 6.78 lakh.
  • As of now, 746 applications have received approval in 14 sectors, with an expected investment exceeding Rs 3 lakh crore.
    • Notably, 176 MSMEs are among the beneficiaries of the PLI schemes, particularly in sectors like pharma and telecom.

What is the Production Linked Incentive Scheme (PLI)?

  • Production-linked incentive (PLI) schemes were first introduced in India in March 2020, mainly targeting three industries – Mobile Manufacturing and Electric Components, Pharmaceutical and Medical Device Manufacturing.
  • The PLI concept has since expanded to 14 sectors to boost India’s manufacturing capabilities and encourage export-oriented production.
  • The PLI schemes aim to develop capacities in the local supply chain, introduce new downstream operations, and incentivise investments into high-tech production.
  • Mechanism: Under the PLI scheme, both domestic and foreign companies receive financial incentives for manufacturing within India, with rewards calculated as a percentage of their revenue over up to five years.
  • Targeted Sectors: The 14 sectors covered by the scheme include mobile manufacturing, medical devices, automobiles and auto components, pharmaceuticals, drugs, speciality steel, telecom & networking products, electronic products, white goods (ACs and LEDs), food products, textile products, solar PV modules, advanced chemistry cell (ACC) batteries, and drones and drone components.
  • Incentive Structure: Incentives are determined based on incremental sales, with certain sectors like advanced chemistry cell batteries, textile products, and the drone industry having calculations considering sales, performance, and local value addition over five years.
    • Emphasizing research and development (R&D) investments aims to align the industry with global trends and enhance competitiveness in the international market.

Performance of the PLI Schemes:

  • Positive Export Growth: India has experienced a substantial boost in mobile handset exports, doubling from Rs 45,000 crore in FY22 compared to FY21, and further estimating exports to reach Rs 90,000 crore in FY23.
    • Additionally, in the pharmaceutical industry, India has successfully manufactured 35 active pharmaceutical ingredients (APIs), reducing reliance on imports, particularly from countries like China.
    • Overall, the PLI schemes have contributed to exports exceeding Rs 3.2 lakh crore, notably driven by sectors such as electronics, pharmaceuticals, food processing, and telecom.
  • Challenges in Implementation: Despite positive outcomes, the implementation of PLI schemes has faced sluggish progress.
    • In the fiscal year 2021-22, the government disbursed a mere Rs 10 crore in incentive payouts for mobile handsets, white goods (ACs and LEDs), and the food processing industries combined.
    • However, this figure increased to Rs 2,874 crore in 2022-23, according to DPIIT.
    • During the initial two years of the seven-year initiative, only 1.46 per cent of the total Rs 1.97 lakh crore incentive outlay was disbursed.
    • Some major industries are yet to fully embrace the scheme or initiate significant activities under it.
  • Limited Job Creation: The slow start in implementation has resulted in a lower-than-projected number of jobs created.
    • While the PLIs were anticipated to generate 6 million new jobs over seven years, the actual figure stands at approximately 300,000 jobs, representing only 5 per cent of the total projection, between 2020 and early 2023.

Challenges in the PLI Scheme:

  • Assembly Emphasis Over Value Addition: The subsidy structure within the Mobile and allied Component Manufacturing segment of the PLI scheme primarily incentivizes the completion of phone assembly in India, neglecting the consideration of the actual value added through manufacturing processes.
    • Consequently, many mobile phone components are still imported, encompassing critical elements such as display screens, cameras, batteries, and printed circuit boards.
  • WTO Constraints and Limited Value Addition: India faces constraints imposed by WTO rules, preventing the tying of PLI subsidies to domestic value addition.
    • While India aspires to produce chips domestically, the intricate nature of chip manufacturing and the inability to mandate significant domestic value addition present challenges to realising this goal.
  • Ambiguity in Incentive Disbursement: Despite the establishment of an Empowered Committee to oversee fund disbursement across various sectors, the process lacks transparency and clear criteria.
    • The absence of well-defined parameters for ministries and departments to determine incentive allocations raises concerns about the fairness and effectiveness of the scheme.
  • Absence of a Centralized Database: A notable deficiency in the PLI scheme is the lack of a centralized database that comprehensively captures critical information such as increased production, exports, and the creation of new jobs.
    • This information gap complicates the evaluation process, introducing administrative complexities.
    • The resulting ambiguity impacts transparency, potentially leading to mischief, thereby weakening the overall policy structure.

Way Forward

The government should evaluate the efficacy of the PLI scheme, taking into account factors such as job creation, cost per job, and the identified challenges contributing to its limited success. Before expanding the scheme to encompass additional sectors, a thorough understanding of its limitations is essential, along with proactive measures to address the underlying issues.

 

India’s multidimensional poverty rate is down to 11.28% in 2022-23 from 29.17% in 2013-14 (Indian Express)

  • 16 Jan 2024

Why is it in the News?

The share of India’s population living in multidimensional poverty is estimated to have fallen to 11.28 per cent in 2022-23 from 29.17 per cent in 2013-14, according to a discussion paper released by NITI Aayog on Monday.

Context:

  • According to the NITI Aayog’s discussion paper, multidimensional poverty in India declined from 29.17% in 2013-14 to 11.28% in 2022-23, with about 24.82 crore people moving out of this bracket during this period.
  • The national multidimensional poverty measures simultaneous deprivations across three equally weighted dimensions of health, education, and standard of living that are represented by 12 sustainable development goals-aligned indicators, according to NITI Aayog.

Key Highlights of the MPI in India Since 2005-2006:

  • Overall Decline in Multidimensional Poverty: As per the NITI Aayog discussion paper, India's multidimensional poverty has decreased from 29.17% in 2013-14 to 11.28% in 2022-23.
    • The trend signifies the upliftment of 24.82 crore people from this bracket during the specified period.
  • State-wise Decline: "Uttar Pradesh registered the largest decline in the number of poor with 5.94 crore people escaping multidimensional poverty during the last nine years followed by:
    • Bihar at 3.77 crore
    • Madhya Pradesh at 2.30 crore and
    • Rajasthan at 1.87 crore.
  • NITI Aayog's approach to measuring multidimensional poverty involved considering 12 indicators aligned with the sustainable development goals.
    • These indicators encompass crucial aspects such as nutrition, child and adolescent mortality rates, maternal health, educational attainment, access to basic amenities like clean cooking fuel, sanitation, safe drinking water, electricity, and housing, as well as possession of assets and bank accounts.
  • "Significant initiatives covering all dimensions of poverty have led to 24.82 crore individuals escaping multidimensional poverty in the last 9 years.
    • As a result, India is likely to achieve its SDG target of halving multidimensional poverty well before 2030.
  • The report emphasized impactful programs, such as Poshan Abhiyan and Anemia Mukt Bharat, which have markedly improved accessibility to healthcare services, significantly reducing deprivation.
    • Managing one of the globe's largest food security initiatives, the targeted Public Distribution System (PDS) under the National Food Security Act encompasses 81.35 crore beneficiaries, ensuring the distribution of food grains to both rural and urban populations.
  • "The government's persistent dedication and resolute commitment to enhancing the lives of the most vulnerable and deprived have been instrumental in this accomplishment.

What is Multidimensional Poverty?

  • Poverty can have several negative effects at once. Some of these include inadequate nutrition or health, a lack of power or clean water, low-quality employment, or insufficient education.
  • The true nature of poverty cannot be fully captured by concentrating only on one aspect, such as income.
  • Multidimensional Poverty, as a metric, goes beyond income or consumption alone.
    • It encompasses deprivations in education and access to essential infrastructure, considering factors beyond the monetary aspect.
    • The measurement is conducted at the $2.15 international poverty line, as defined by the World Bank (in 2017 purchasing power parity terms), ensuring a comprehensive assessment of poverty that extends beyond monetary value.

What is the National Multidimensional Poverty Index (MPI)?

  • Prepared By: NITI Aayog
  • Objective: The aim is to gauge poverty across various dimensions, complementing existing statistics based on per capita consumption expenditure.
  • Purpose of the National MPI: Provides an enhanced, high-level overview of poverty at the national level.
    • Acts as a complement to monetary poverty measures.
    • Furnishes information crucial for shaping effective policy initiatives.
    • The MPI is founded on the individual or household profile of overlapping or "joint" deprivations experienced by each person.
  • Key Features: Serves as an incentive for leaving no one behind and prioritizing the most marginalized.
    • Adaptable to the national context and maintains transparency.
  • Credible Methodology: India's national MPI employs a methodology developed by the Oxford Poverty and Human Development Initiative (OPHI) and the United Nations Development Programme (UNDP), aligning with the globally accepted and robust standards used in the publication of the Global Multidimensional Poverty Index.
  • Three Macro Dimensions: The National MPI is structured around three macro dimensions, each with specific indicators and weights, outlined below –

Significance of the MPI:

  • Crucial Public Policy Instrument: The establishment of India's National MPI introduces a pivotal public policy instrument that monitors multidimensional poverty, facilitating evidence-based and targeted interventions to ensure inclusivity and prevent any individuals from being left behind.
  • Assesses the Efficacy of Multi-Sectoral Interventions: It offers valuable insights into the effectiveness of multi-sectoral interventions aimed at addressing diverse facets of poverty.
  • Encompasses Diverse Deprivations: Notably, functioning as a metric for multidimensional poverty, it captures the myriad and simultaneous deprivations experienced by households.
  • Comprehensive Analysis Across All Tiers: This report conducts a thorough analysis of the headcount ratio and intensity of multidimensional poverty, encompassing national, State/UT, and district levels.

Conclusion

The National MPI in India has been conceived as an all-encompassing tool, expediting purpose-driven initiatives to gauge and systematically eliminate multidimensional poverty. The dimensions of the index have demonstrated their efficacy in identifying and facilitating precise policy interventions aimed at achieving targeted goals.

NITI Aayog

  • NITI Aayog, established on January 1, 2015, succeeded the Planning Commission with a distinctive focus on a 'Bottom-Up' approach.
  • Embracing the vision of 'Maximum Governance, Minimum Government' and echoing the ethos of 'Cooperative Federalism,' NITI Aayog serves as a dynamic institution facilitating collaborative decision-making.

Functional Components: NITI Aayog operates through two principal hubs-

  • Team India Hub: This hub is a crucial interface, fostering effective communication and collaboration between the states and the central government.
    • It plays a pivotal role in aligning the diverse interests of different regions in the spirit of cooperative federalism.
  • Knowledge and Innovation Hub: This hub is dedicated to enhancing the intellectual capacity of NITI Aayog. It functions as a think tank, driving innovative ideas and knowledge creation to inform policy decisions and contribute to the overall development agenda.

INDICES of NITI Aayog:

  • Composite Water Management Index
  • District Hospital Index
  • Export Preparedness Index
  • Global Innovation Index
  • India Innovation Index
  • Multidimensional Poverty Index
  • School Education Quality Index
  • SDG India Index
  • State Energy Index
  • State Health Index

To combat climate challenges, the Finance Commission needs to step up (Indian Express)

  • 13 Jan 2024

Why is it in the News?

As the union government constituted the 16th Finance Commission (FC), experts recommend including variables related to climate change, beyond forest cover.

Background:

  • In the contemporary era, India has gained prominence as a key participant in global initiatives aimed at addressing climate change and promoting increased forest coverage.
  • This engagement has not only positively impacted environmental sustainability but has also strengthened the adaptability of communities and ecosystems.
  • In addressing the hurdles presented by climate change, the concept of fiscal federalism, with a specific focus on the role of the Finance Commission (FC), has emerged as a crucial factor in encouraging states to prioritize conservation endeavours.

Role of the Finance Commission in Fiscal Federalism and Forest Conservation:

  • Promoting Conservation Initiatives: The Finance Commission's role has been pivotal in actively promoting and incentivizing state-led efforts towards forest conservation.
  • Through dedicated fund allocations, the Commission acknowledges the inherent connection between vibrant forests, sustainable ecosystems, and the overall national well-being.
  • Financial backing serves as a catalyst, motivating states to prioritize conservation endeavours while safeguarding their economic interests.
  • Balancing Revenue Capacities and Expenditure Needs: Beyond their biodiversity significance, forest resources represent valuable economic assets for states.
  • The Finance Commission recognizes that preserving existing forests and augmenting forest cover density directly impact the revenue capacities and expenditure requirements of states.
  • Finding an equilibrium between economically exploiting forest resources and ensuring their conservation becomes essential for achieving both environmental sustainability and economic prosperity.

Previous Instances of Finance Commission Initiatives in Forest Conservation:

  • The Finance Commission’s formulae for tax sharing have evolved since the first one, constituted in 1951, for the period 1952-1957.
    • Since then, FCs have been constituted at intervals every five years with the 16th one currently being implemented.
  • Initially, the formula for distributing tax among states respectively, known as horizontal devolution, gave significant weightage, around 80% to 90%, to the population of the states, meaning states with higher populations were given a higher share of the tax.
    • Then, the 7th FC drastically reduced the weightage assigned to the population to 25% and increased the weightage given to equity, in which income, land area, and sometimes infrastructure and fiscal discipline too, played a significant role in determining how much each state would receive from the central government.
  • Similarly, there have been changes in determining the funds allocation for environmental initiatives.
    • The 12th FC (2005-10) dedicated Rs 1,000 crore for forest conservation across states.
    • The 13th FC (2010-15) enhanced this allocation to Rs 5,000 crore.
      • However, it is important to note that these grants comprised less than 0.05% of the total funds transferred from the central government to the states.
  • Ecological Fiscal Transfers (EFT) – where public revenue is shared based on ecological indicators – were introduced in 2015 with the 14th FC which incorporated forest cover as a criterion for tax devolution, allocating it a weightage of 7.5% in the distribution formula for the tax-transfer during the period 2015-16 to 2019-2020.
    • The 14th FC (2015 to 2020) considered several recommendations and replaced the grants with a more prominent placement for the forestry sector — it dedicated 7.5 per cent of the divisible central tax pool to ecology and forests.
      • The allocation was based on the forest cover in each state.
  • The 15th FC (2021–22 to 2025–26) extended this share to 10 per cent.
  • Having mobilised and distributed over Rs 4.5 lakh crore to states against not only their forest cover but also forest density, the 15th FC effectively became the largest payment for ecosystem services (PES) systems in the world.
    • The Commission also gave grants to combat air pollution.
  • The fiscal transfers that are earmarked for a specific department or programme have traditionally been much smaller than fiscal transfers to the general state budget.
    • For example, the specific-purpose grants for forestry under the 12th and 13th FC were a fraction of the general-purpose transfers (those not assigned to specific purposes) that followed under the 14th and 15th FC.
  • The formula-based finance commission transfers are unconditional and are not tied to the Department of Forest or Ecology.
  • Whether there is a need for conditions to ensure the funds are invested in the environment, at least in principle, the enticement of receiving larger general-purpose transfers should motivate states to invest in forest protection.
  • Since 2005, the central government has been sharing annual forest grants with states.
    • These grants serve as both compensation and incentive mechanisms.
    • However, it remains unclear to what extent these grants have contributed to the increased forest cover in the states.

Addressing Complexities in the Intersection of Fiscal Federalism and Environmental Conservation:

  • Harmonizing Conservation Costs and Economic Imperatives: Balancing conservation expenses with economic necessities becomes challenging, particularly for states grappling with financial constraints.
    • The substantial opportunity costs linked with forest preservation may strain state budgets, presenting a hurdle in garnering widespread commitment.
  • Innovating Financing Models for Conservation: Traditional financing models for conservation may prove inadequate or unsustainable in the long term.
    • Overreliance on grants can create dependencies, hindering the development of self-sustaining mechanisms for conservation.
  • Addressing Climate-Induced Economic Vulnerabilities: The repercussions of climate change pose considerable threats to economic stability, especially for states heavily dependent on climate-sensitive sectors.
    • Unpredictable weather patterns, floods, and forest fires can intensify existing vulnerabilities.
  • Strategically Allocating Resources: The Finance Commission encounters the intricate task of strategically allocating resources to maximize both environmental and economic advantages.
    • Ensuring targeted funding for critical conservation initiatives while aligning with state development objectives demands a nuanced approach.
  • Integrating Environmental Goals with Fiscal Capacity: States may grapple with aligning their environmental objectives with fiscal capabilities, potentially creating a gap between aspirations and implementation.
  • Ensuring Equitable Participation: A potential risk exists where states with greater fiscal capacities may disproportionately benefit from conservation incentives, potentially exacerbating existing economic disparities.

The Potential Role of 16th Finance Commission's:

  • Integrating Climate Considerations into Tax Devolution Framework: The 16th Finance Commission has the potential to bring about a transformative shift by integrating climate vulnerability and emission intensity as pivotal factors in the tax devolution formula.
    • This alignment directly supports India's Nationally Determined Contributions (NDCs) under the Paris Agreement, providing states with robust fiscal incentives to actively contribute to national climate goals.
  • Implementing Performance-Based Grants for Key Sectors: Recognizing the instrumental role of specific sectors in achieving NDCs and Sustainable Development Goals (SDGs), the 16th Finance Commission could contemplate introducing performance-based grants.
    • These grants, which are specifically designed to help areas like renewable energy, sustainable land and forest management, and air pollution efforts, provide states with focused financial assistance and motivate them to take proactive steps toward change.
  • Addressing Emission Reduction Challenges: Prioritizing emission reduction, the commission can focus on decarbonizing critical sectors like energy and transport.
    • This entails incentivizing states to embrace clean energy practices and fostering innovation to tackle persistent issues like crop burning.
    • Through strategic fund allocation, the 16th Finance Commission can drive tangible progress in mitigating emission sources.
  • Funding Innovations for Ecological Challenges: Allocating funds to innovative solutions for ecological challenges induced by climate change becomes a crucial role for the 16th Finance Commission.
    • Whether supporting mangrove restoration to counter weather vagaries or addressing the escalating incidents of forest fires, the commission can catalyze research, development, and implementation of sustainable strategies.
  • Utilizing Scientific Data for Informed Decision-Making: Leveraging advanced technology, the 16th Finance Commission can utilize scientific data, pollution inventories, and remote sensing to assess state vulnerabilities and mitigation efforts.
    • This data-driven approach ensures that fiscal decisions are rooted in empirical evidence, enabling the commission to design an effective and equitable performance-based system for fund allocation.
  • Transforming into a Leader in Climate Readiness: Going beyond its traditional fiscal role, the 16th Finance Commission has the potential to evolve into a leader in India's climate readiness.
    • This transformation involves active participation in designing and implementing a fiscal blueprint that balances economic growth with environmental imperatives, guiding policies that meet present needs without compromising the ability of future generations to meet their own.

Conclusion

In the current juncture where India grapples with the intertwined paths of economic advancement and environmental safeguarding, the Finance Commission's significance in fiscal federalism cannot be overstated.

The 16th Finance Commission, poised to influence tax distribution principles and stimulate climate-conscious endeavours, emerges as a pivotal player in fostering a harmonious equilibrium between economic progress and ecological conservation.

By adopting strategic measures and pioneering innovative strategies, the Finance Commission has the potential to evolve into a formidable catalyst in India's pursuit of climate resilience.

 

Optimizing Logistics Costs in India and the Critical Role of Accurate Data (Indian Express)

  • 11 Jan 2024

Why is it in the News?

Logistics has been talked about for a long time and India has also focused on improving performance. We are now getting some precise data on measurement and quantification.

Context:

  • The logistics sector plays a vital role in shaping a nation's economic dynamics, and its intricacies are of paramount importance.
  • India's steady progress in the Logistics Performance Index (LPI) rankings reflects positive advancements in its logistics sector, showcasing a dedicated effort to boost global competitiveness and streamline trade logistics efficiency.
  • Consequently, a comprehensive examination of India's logistics landscape, involving the analysis of key indicators, methodologies, and recent reports, becomes essential for a nuanced comprehension of its achievements and hurdles.

The Logistics Performance Index (LPI):

  • Developed by the World Bank, the Logistics Performance Index (LPI) stands as a crucial tool for evaluating a country's trade logistics efficiency and effectiveness.
  • Comprising six key dimensions—customs, infrastructure, international shipments, logistics competence, tracking and tracing, and timeliness—the LPI offers a comprehensive insight into a nation's logistical capabilities.

India's Position in the LPI:

  • Despite inherent methodological considerations in survey-based indices, the 2023 LPI places India at the 38th position out of 139 countries, showcasing an improvement from its 2014 rank of 54.
  • This positive trajectory aligns with India's 2022 vision to reduce logistics costs, enhance LPI rankings, and establish a data-driven decision support mechanism.
  • Furthermore, the introduction of PM Gati Shakti in 2021, though its impact is not immediately reflected in the LPI 2023 due to understandable time lags.

Assessing Logistics Costs in India:

  • Economic Survey 2022-23: The Economic Survey 2022-23 reveals a consistent range of logistics costs in India, hovering between 14-18% of the Gross Domestic Product (GDP).
  • This starkly contrasts with the global benchmark of 8%, highlighting the challenges in achieving optimal efficiency in India's logistics operations.
  • The survey emphasizes the need for strategic interventions to address the significant gap between India's logistics costs and international standards.
  • Dun and Bradstreet (D&B) 2018 Report: An in-depth examination of seaport business costs by a Dun and Bradstreet (D&B) 2018 report indicates that the cost is approximately 15-16% of the consignment value.
  • Notably, there is considerable variation across ports, emphasizing the necessity of a nuanced approach in evaluating logistics costs within specific segments of the supply chain.
  • NCAER Report (December 2023): The National Council of Applied Economic Research (NCAER) introduces a fresh perspective in its report on logistics costs in India.
  • Acknowledging the absence of official estimates, the report references various private sector and academic institutions' estimates.
  • Employing meticulous methodology, including supply and use tables, the report provides a nuanced and precise estimation.
  • According to this report, logistics costs in 2021-22 ranged between 7.8% and 8.9% of GDP, showcasing a decline over time with a transient increase in 2017-18 and 2018-19.
  • CII-Arthur D Little Report (2020): Delving into logistics costs throughout the supply chain, the CII-Arthur D Little Report (2020) estimates them to be around USD 400 billion, equivalent to 14% of India's GDP.
  • Comparative assessments with global peers, including the United States, Europe, and China, expose a competitiveness gap of USD 180 billion.
  • The report underscores the urgency of addressing these high logistics costs to bolster India's economic competitiveness globally.

Logistics Cost Performance Across States:

  • As per the Commerce Ministry's LEADS (Logistics Ease Across Different States) report for 2023:
  • States are categorized into four groups - coastal, landlocked, north-east, and Union Territories.
  • States exhibiting strong performance are termed achievers.
  • States with moderate performance are referred to as fast movers.
  • States with below-average performance are labelled as aspirers.
  • Performance of Coastal States:
  • Approximately 75% of export cargo is traced back to coastal states.
  • Among coastal states, Andhra Pradesh, Gujarat, Karnataka, and Tamil Nadu are notably successful.
  • However, lagging behind in performance are Goa, Odisha, and West Bengal.
  • While most states, including Goa and Odisha, have implemented a state-level logistics policy, West Bengal, ranking lowest in the coastal category, lacks one.

Difficulties and Variations for Policymakers in Developing a Successful Plan for India's Logistics Sector:

  • Methodological Variations: A key challenge in deciphering logistics cost reports stems from the diverse methodologies employed across different studies.
  • These reports adopt varied approaches, ranging from consignment value percentages to supply and use tables, to estimate logistics costs.
  • The resulting disparities in methodologies contribute to variations in reported figures, necessitating careful consideration when drawing conclusions.
  • India's Global Competitiveness: The consistent comparison with global benchmarks, particularly the 8% GDP threshold for logistics costs, prompts questions about India's competitiveness on the international stage.
  • Reports consistently highlight a competitiveness gap, with logistics costs surpassing global averages.
  • This has implications for India's capacity to attract investment, participate in global trade, and position itself advantageously in the interconnected world economy.

Shifting Perspectives on India’s Logistics Costs:

  • Reassessing Established Views: The evolving discourse on logistics costs in India challenges conventional perceptions regarding the country's logistics expenses.
  • As methodologies advance and newer reports offer more accurate estimations, the narrative may transition from a broad acknowledgement of high costs to a more nuanced comprehension of the sector's intricacies.
  • This evolving narrative carries implications for businesses, investors, and policymakers, prompting them to stay informed of the latest data and adjust strategies accordingly.
  • Encouraging Trends Amid Challenges: While challenges persist, positive trends also emerge from the data.
  • The improvement in India's Logistics Performance Index (LPI) rankings over time and the downward trend in logistics costs, as highlighted by the NCAER report, present a more optimistic outlook.
  • These positive signals indicate that endeavors to enhance logistics efficiency and reduce costs may be gaining momentum, pointing towards a positive trajectory for India's logistics landscape.

Conclusion

The logistics landscape in India is intricate, featuring indices like LPI, varied cost assessments, and state-level nuances that collectively contribute to a holistic understanding.

The recent NCAER report establishes a crucial methodological groundwork for future deliberations, challenging existing perceptions and emphasizing the importance of accurate measurement in assessing India's logistics capabilities.

In the pursuit of elevating its global position in logistics, India must adopt a nuanced approach that considers both macro and micro perspectives. This approach is vital for fostering sustainable growth and driving efficiency improvements throughout the nation.

Revival of the tiger: A joint effort, a cultural renaissance (Indian Express)

  • 06 Jan 2024

Why is it in the News?

Jim Corbett Tiger Reserve has achieved success through comprehensive conservation strategies, including habitat protection, community involvement, and ecological sustainability. The reserve's efforts focus on maintaining a balance between wildlife conservation and the well-being of local communities, showcasing a commitment to the coexistence of both nature and people.

Background:

  • India has a profound history of forest and wildlife conservation, marked by a notable achievement at the Corbett Tiger Reserve (CTR) in Uttarakhand.
  • CTR has seen the successful implementation of comprehensive efforts and strategies, resulting not only in a remarkable rise in the tiger population but also establishing itself as a global exemplar in wildlife management.

About Jim Corbett National Park:

  • Established in 1936 as Hailey National Park, Jim Corbett National Park holds the distinction of being India's first national park.
  • In 1973, it gained Tiger Reserve status, becoming the pioneer in the Project Tiger initiative.
  • Nestled in the Shivalik hills of the Himalayas, Corbett Tiger Reserve spans across the Pauri Garhwal, Nainital, and Almora districts of Uttarakhand.
  • Renowned for its global record, it proudly hosts the highest tiger density, reaching 260 in 2022, a notable increase from 231 four years earlier.

Cultural and Economic Significance of Tigers in India:

  • Beyond ecological importance, the tiger carries profound cultural and historical significance in India.
  • The resurgence of tiger populations, particularly at CTR, represents a cultural revival and the renewed embrace of conservation values.
  • The thriving eco-tourism industry illustrates the economic interdependence between local communities and tigers, highlighting the profound connection between wildlife and people at CTR.

An Overview of Effective Biodiversity and Tiger Conservation Plan at CTR:

  • Implementation of a Comprehensive Strategy: CTR owes its success to the meticulous execution of the Tiger Conservation Plan, focusing on the well-being of both tiger populations and broader biodiversity.
    • Spanning 1288.31 sq km across Uttarakhand, CTR showcases the plan's efficacy in nurturing a flourishing ecosystem.
  • Clear Division of Core and Buffer Zones: The foundation of the Tiger Conservation Plan lies in delineating core and buffer zones within the reserve, offering wildlife a sanctuary.
    • Core zones provide undisturbed habitats crucial for breeding, while buffer zones minimize conflicts between human settlements and wildlife.
  • Increase in Tiger Population: Recent statistics highlight a significant rise in CTR's tiger population, from 231 to 260 in just four years.
    • This surge underscores the plan's success, safeguarding not only tigers but also the overall health and balance of the forest ecosystem.
  • Maintenance of Rich Biodiversity: CTR's success extends beyond tiger numbers, encompassing a biodiverse landscape that attracts researchers, conservationists, and tourists.
    • The diverse flora and fauna contribute to ecological balance, fostering harmonious coexistence between predator and prey.
  • Promotion of Ecotourism and Conservation: CTR's vibrant ecosystem has made it a hub for ecotourism, creating economic opportunities for local communities.
    • Tourists contribute to both nature appreciation and the local economy, making conservation and tourism mutually beneficial.
  •  Effective Grassland and Water Management: CTR employs a nuanced approach to grassland management with 27 grassland types, crucial for sustaining prey species.
    • Strategic water management, including solar-pump-fed waterholes, supports diverse wildlife needs, ensuring a sustainable ecosystem.
  • Dedicated Forest Staff: The dedicated forest staff, comprising foot-soldiers, mahouts, and guards, are integral to CTR's success.
    • Initiatives like timely wages and enhanced safety measures underscore the importance placed on the well-being of these unsung heroes.
  • Focus on Wildlife Corridors and Habitat Protection: CTR prioritizes wildlife corridors for gene pool exchange, aligning with the Tiger Conservation Plan's recommendations.

Human-Wildlife Conflict at CTR:

  • Increasing Incidents and Challenges: The upsurge in conflicts between humans, elephants, and tigers at CTR stems from factors like habitat encroachment, limited animal corridors, and the behavioral conditioning of predators.
    • Straying milch and domestic animals from villages become easy prey for tigers, leading to predatory behavior towards humans, especially in buffer forest areas.
  • The Complexity of 'Wicked Problems': Described as a 'wicked problem' due to its intricate nature, human-wildlife conflict at CTR requires a nuanced and context-specific approach.
    •  CTR emphasizes the significance of every solution attempt, recognizing that there's no one-size-fits-all remedy, and continuous adaptation and innovation are essential for evolving conflict scenarios.

Strategies Implemented for Human-Wildlife Conflict Mitigation and Co-Existence Promotion at CTR:

  • Forest Department Initiatives: Proactive measures by the forest department at CTR have successfully eliminated poaching activities, particularly along the sensitive southern boundary.
    • Dedicated foot soldiers, along with digital surveillance through the electronic-eye project, have played a pivotal role in reducing wildlife threats.
  • Community Engagement Strategies: Community engagement is fundamental to CTR's approach to resolving human-wildlife conflicts.
    • Local stakeholders actively participate in conservation through initiatives like the Living with Tigers program, engaging villagers and school children in behavioral and response awareness.
    • This educational effort aims to deepen understanding of wildlife behavior patterns and promote practices that enhance safety for both humans and animals.
  • Provision of Economic Incentives for Conservation: The forest department has initiated projects offering economic incentives for conservation, such as the beehive-fencing project.
    • Strategically placing beehives along village-forest borders, the resulting Corbee Honey brand is managed by local Eco Development Committees (EDCs), fostering economic cooperation and coexistence with local stakeholders.

Conclusion

  • Corbett Tiger Reserve emerges as a triumph in wildlife conservation, embodying a comprehensive and integrated approach. Through careful habitat management and community engagement, CTR exemplifies the promise of sustainable coexistence between humans and wildlife. As an integral chapter in India's conservation story, the ongoing success of the reserve relies on the collaborative endeavors of the forest department, local communities, and passionate conservation advocates.

To avoid worst-case scenarios, the need for fiscal correction is all the more vital this election year (The Hindu)

  • 05 Jan 2024

Why is it in the News

The recent observations by the International Monetary Fund (IMF) sparked reactions from the Indian Government in which it states that India’s general government debt, including the Centre and States, could be 100% of GDP under adverse circumstances by fiscal 2028.

Context:

  • India’s economic landscape has undergone scrutiny as the International Monetary Fund (IMF) made two noteworthy observations.
  • The IMF report not only acknowledged India’s effective inflation management but also presented a balanced outlook for the country’s economic growth.
  • To analyze the IMF’s insights on India’s economic situation, one must understand the broader global context in which these observations were made.

Insights from the IMF on India's Economic Landscape:

Exchange Rate Reclassification:

  • A pivotal observation by the IMF is the reclassification of India's exchange rate regime from floating to a stabilised arrangement.
  • This reclassification raises questions about the flexibility of the currency and its alignment with market forces, indicating a perception of a more controlled and stabilised environment, potentially influenced by central bank (RBI) interventions.

Debt Sustainability Concerns:

  • The IMF expresses significant concerns about the long-term sustainability of India's debts.
  • The report projects that, under adverse circumstances, India's general government debt could reach 100% of GDP by fiscal 2028.
  • This highlights the imperative for careful debt management strategies, particularly as India confronts substantial investment requirements to meet climate change mitigation targets and enhance resilience to climate stresses and natural disasters.
  • It's crucial to note that these IMF insights are framed within the global context of increasing public debts, recognizing that India's economic challenges are interconnected within a complex web of global economic phenomena.

The Global Debt Scenario in a Broader Context:

Dual Nature of Debt: Accelerator vs. Drag on Development:

  • Globally, government borrowings have been instrumental in fostering development, supporting infrastructure projects, social programs, and economic growth.
  • However, the IMF's concerns emphasize the potential drawbacks of this strategy, as limitations in accessing financing, rising borrowing costs, currency devaluations, and sluggish growth can transform debt from a catalyst into a hindrance.
  • The United Nations' assertion that countries face a challenging dilemma between servicing their debt or serving their people encapsulates the inherent difficulty in managing debt for sustainable development.

Surging Global Public Debt Trends:

  • According to the UN, global public debt has surged more than fourfold since 2000, surpassing the tripling of global GDP over the same period.
  • In 2022, global public debt reached USD 92 trillion, with developing countries contributing nearly 30% to the total, and China, India, and Brazil accounting for a significant portion (70%).
  • The acceleration of debt in developing nations over the past decade is attributed to heightened development financing needs exacerbated by the COVID-19 pandemic, the cost-of-living crisis, and the impact of climate change.

Asymmetric Burden on Developing Countries:

  • The burden of debt is unevenly distributed between developed and developing nations, with developing countries often facing higher interest rates even without considering exchange rate fluctuations.
  • This well-documented disparity reveals that countries in Africa, for instance, borrow at rates four times higher than the United States and eight times higher than Germany, undermining the debt sustainability of developing economies.

Increasing Debt Levels and the IMF's Perspective:

  • The number of countries grappling with high levels of debt has surged from 22 in 2011 to 59 in 2022, highlighting persistent debt challenges in developing nations.
  • The IMF's projections for India should be understood in the broader context of a global debt conundrum.

Challenges Facing India's Economic Landscape:

Increasing Public Debt:

  • The central government's debt, amounting to ?155.6 trillion, constitutes 57.1% of GDP as of March 2023, with state government debts accounting for about 28% of GDP.
  • Despite claims by the Finance Ministry that India's public debt-to-GDP ratio has marginally increased from 81% in 2005-06 to 84% in 2021-22, the 2022-23 figures indicate a return to 81%, surpassing targets set by the Fiscal Responsibility and Budget Management Act (FRBMA).

Balancing Public Debt for Sustainability:

  • A significant challenge for India lies in achieving a delicate balance to ensure that public debt remains within sustainable levels.
  • IMF projections indicate that India's general government debt, inclusive of both central and state governments, could reach 100% of GDP by fiscal 2028 under adverse circumstances, underscoring the need for meticulous debt management strategies.

Stagnant Credit Ratings:

  • Despite being acknowledged as the fastest-growing major economy globally, India's sovereign investment ratings have remained stagnant since August 2006.
  • Both Fitch Ratings and S&P Global Ratings have maintained India's credit rating at 'BBB-' with a stable outlook, the lowest investment-grade level, attributed to factors like weak fiscal performance and a burdensome debt stock.

Emerging Fiscal Challenges:

  • Disruptions caused by the COVID-19 pandemic contribute to the current high debt-GDP ratio, with potential fiscal slippage in FY24 according to India Ratings and Research.
  • Increased expenditure on employment guarantee schemes and subsidies, such as a higher fertiliser subsidy and overspending on the MGNREGA, pose challenges to fiscal stability.

Managing Short-Term Challenges and Election Dynamics:

  • As India approaches general elections, increased subsidies are expected, but questions arise about the impact on employment growth and livelihoods in rural areas.
  • Navigating these short-term challenges in an election year becomes a critical test for maintaining fiscal discipline and avoiding worst-case scenarios.

Way Forward:

  • While the exchange rate reclassification raises potential concerns about excessive management, the focus on debt sustainability underscores the broader call for prudence in managing fiscal policies.
  • The IMF's observations highlight the delicate balancing act India must perform—maintaining a stable exchange rate while ensuring long-term debt sustainability.
  • There is a pressing need for new and preferably concessional sources of financing, increased private sector investment, and the implementation of carbon pricing or equivalent mechanisms to address long-term risks.

Conclusion:

Navigating the multifaceted challenges outlined by the IMF, India finds itself at a crucial juncture, necessitating a strategic approach to economic management. The IMF's observations, addressing concerns about debt sustainability and the reclassification of the exchange rate regime, underscore the importance of nuanced decision-making and long-term planning.

Centre Wants to End Free Movement Regime With Myanmar (Indian Express)

  • 03 Jan 2024

Why is it in the News?

The Centre has decided to scrap the Free Movement Regime (FMR) along the Indo-Myanmar Border (IMB), which was implemented in 2018 as part of India’s Act East policy.

What is the Free Movement Regime?

  • The FMR is a mutually agreed pact between India and Myanmar that allows tribes dwelling along the border on either side to travel up to 16 km inside the other country without a visa.
  • The members of hill tribes have to produce a border pass, which is valid for a year and can stay in the other country for about two weeks per visit.
  • The FMR was introduced in 2018 as part of the government’s ‘Act East Policy’ when relations between India and Myanmar were on the rise.
  • The agreement aimed to facilitate people-to-people ties between the countries as residents in the region enjoy strong ethnic and familial relations on both sides of the border.
  • The FMR was also brought to provide impetus to local trade and business.
  • Originally planned for 2017, its implementation was delayed due to the Rohingya refugee crisis that emerged in August of that year.

Background and Purpose:

  • The boundary delineation by the British in 1826 separated people of the same ethnicity and culture into two nations without their opinion.
  • The FMR sought to address this historical division, allowing ethnically similar communities across borders to move freely without visa requirements.
  • Initially designed to boost local trade and business, the FMR has faced criticism for inadvertently facilitating issues such as illegal immigration, drug trafficking, and gun-running.

Why it is being removed?

  • India and Myanmar share a mostly unfenced border.
  • The IMB goes through forested terrain which is difficult to monitor.
  • In Manipur, just 10 km of its border with Myanmar is fenced.
  • Mizoram has a 510-km-long porous border with Myanmar.
  • Nagaland shares a 215 km boundary with the Southeast Asian nation and
  • Arunachal Pradesh has a 520 km-long boundary with Myanmar.
  • Since the ethnic conflict erupted in Manipur last year, the free movement regime has come into the spotlight.
  • The Meiteis have blamed the illegal migration of tribal Kuki-Chin peoples from Myanmar for stirring up tensions in the state.
  • On the other hand, the Kukis in Manipur have accused the Meiteis and Chief Minister N Biren Singh of using this as an excuse for “ethnic cleansing”.
  • The alleged illegal migration via the FMR has emerged as a key issue between local leaders in Manipur.
  • The FMR was suspended several times in the past, including in 2020 during COVID-19.
  • Since the military coup in Myanmar on 1 February 2021, a large number of tribals fleeing violence in their country have crossed over to India, especially into Manipur and Mizoram.
  • Over 40,000 refugees belonging to the Kuki-Chin-Zo ethnic group took shelter in Mizoram, while about 4,000 migrants are said to have entered Manipur.
  • There are allegations that these refugees took shelter on Indian soil and then got involved in illegal activities such as drug smuggling.

Is ending FMR the solution?

  • Many insurgent groups such as the United National Liberation Front (UNLF), the People’s Liberation Army (PLA), the United Liberation Front of Assam (ULFA), the National Socialist Council of Nagaland (NSCN), and small groups of Kukis and Zomis have constructed camps in Myanmar’s Sagaing Division, Kachin State and Chin State.
  • “They took shelter there, obtained arms, trained cadres, and, most importantly, engaged in illegal activities such as smuggling drugs and selling weapons to raise funds.
  • This is possible because of the porous borders and frequent misuse of FMR.
  • Therefore, managing and administering the border areas effectively is pertinent for reducing drug trafficking and illegal cross-border movement on unfenced borders.

Conclusion

The Indo-Myanmar border, spanning 1,643 km, presents challenges related to secessionist movements, insurgency, and narcotics smuggling. Neither cancelling the FMR nor completely fencing the border is the solution as it could affect livelihoods, education and essential travel for health care. It is imperative for India to tackle the issue by pursuing the ‘killing the snake without breaking the stick’ stance. A collaborative and multifaceted approach is crucial to addressing these challenges and ensuring stability in the region.

Indo-Myanmar Border:

  • The Indo-Myanmar border spans 1,643 km, with Arunachal Pradesh (520 km), Nagaland (215 km), Manipur (398 km), and Mizoram (510 km) sharing common borders with Myanmar.
  • Demarcation of the Border: Approximately 1,472 km of the border has been demarcated, leaving only two sections unmarked:
  • Lohit sub-sector in Arunachal Pradesh (136 km) and
  • Kabaw Valley in Manipur (35 km).

Security Challenges

  • Secessionist Movements: The Greater Nagaland movement, encompassing areas in both India and Myanmar, has heightened instability along the border.
  • Support to Insurgents: Insurgents in India's Northeastern states maintain ties with groups in Myanmar, offering political support, economic aid, logistics, military training, or arms supplies.
  • Narcotics Smuggling:  Proximity to the Golden Triangle, a hub for drug production, contributes to rampant drug trafficking, with concerns about synthetic drug trafficking to and from Myanmar.

Border Management

  • Security Forces: The Assam Rifles, known as the "Friends of the North East People," safeguards the Indo-Myanmar border in the North East.
  • Modern Surveillance Equipment: Modern tools like Unmanned Aerial Vehicles (UAVs), Battlefield Surveillance Radar (BFSR), and Laser Range Finders enhance border security.
  • Border Fencing: To curb infiltration and illegal activities, the Indian government is implementing fencing measures along the Indo-Myanmar border.
  • Comprehensive Border Infrastructure Project: A comprehensive project aims to enhance infrastructure on the India-Myanmar border.
  • Integrated Check Posts (ICPs): Major entry points on land borders are designated as Integrated Check Posts (ICPs) for efficient management.
  • Border Area Development Programme (BADP): The Ministry of Home Affairs (MHA) undertakes various developmental initiatives under the Border Area Development Programme (BADP) for a holistic approach to border development.

XPoSat: ISRO’s New X-ray Eye in Space (Indian Express)

  • 02 Jan 2024

Why is it in the News?

Indian Space Research Organisation (ISRO) put its first polarimetry mission X-ray Polarimeter Satellite (XPoSat) in a precise circular orbit of 650 km on Monday (January 1) after a 21-minute flight.

Context:

  • As the world welcomed the first morning of 2024, ISRO's launch vehicle successfully placed a new X-ray payload, XPoSat (X-ray Polarimeter Satellite), into orbit for astronomical research.
  • XPoSat is the world’s second satellite-based mission dedicated to making X-ray polarimetry measurements.
  • If the mission proceeds as planned, this entirely indigenous instrument in design and fabrication will mark another significant achievement for Indian astronomers.

What is XPoSat (X-ray Polarimeter Satellite)?

  • X-ray Polarimeter Satellite (XPoSat) is India’s first  and world’s second mission dedicated to analysing the polarisation of X-rays emanating from bright celestial sources in the medium frequency band.
  • XPoSat comprises two payloads, including Indian X-ray Polarimeter (POLIX) and X-ray Spectroscopy and Timing (XSPECT).
  • They have been built by Raman Research Institute and UR Rao Satellite Centre, both located in Bengaluru.
  • The spacecraft is designated for observation from low earth orbit (~ 650 km, low inclination of ~ 6 degree).
  • It has an estimated mission life of about five years during which XPoSat will observe sources that emit polarised X-rays.
  • The observations will be done when the magnetars or neutron stars (they are highly magnetic and display a wide array of X-ray activity) are in transit through the Earth’s shadow, for instance, during the eclipse period.

What are the Two Scientific Payloads Onboard XPoSat?

  • POLIX: It is the world’s first instrument designed to operate in the medium X-ray of 8 to 30 kilo electron Volt (keV) energy band.
  • It comprises a collimator, which is the key component to filter light originating from bright sources in the field of view.
  • Moreover, there is a scatterer consisting of four X-ray proportional counter detectors (that prevent the trapped light from escaping).
  • It will observe a few tens of astronomical sources. It was conceived, designed, and built at RRI.
  • XSPECT: It is designed to conduct fast timing and high spectroscopic resolution in a soft X-ray energy band (0.8-15 keV).
  • It will observe a variety of sources like X-ray pulsars, black hole binaries, low-magnetic field neutron stars, active galactic nuclei or AGNs (a compact region at the centre of a galaxy that emits a significant amount of energy across the electromagnetic spectrum) and magnetars.

Why is the XPoSat Mission Significant?

  • Till now, astronomers have largely used and depended on spectroscopic, imaging and timing–based data obtained from either ground-based telescopes or satellite-based missions from the optical to the radio frequency band of the electromagnetic spectrum.
  • Polarisation of celestial sources was done either in the optical or radio bands.
  • XPoSat, however, will be a game-changer and facilitate X-ray polarisation measurements possible from bright sources, that too, in the medium energy band (8-30 keV) energy range – which has never been attempted ever before.
  • The XPoSat team has identified several tens of sources radiating X-rays.
  • XPoSat will observe two kinds of sources:
  • Persistent sources (targeted and known sources) and
  • Transient sources (pulsars, active galactic nuclei, magnetars).
  • Out in space, X-rays get polarised due to multiple causes.
  • For example, X-rays when subject to strong magnetic fields or due to the interactions with material present around black holes.
  • So, by studying the polarised X-rays emanating from excellent sources like magnetars, black holes and their surrounding environments, and neutron stars, scientists can probe the nature of the radiations and the multitudes of processes involved in the generation of these radiations.
  • POLIX will undertake important measurements like the degree and angle of polarisation of X-ray photons from the environment surrounding black holes, neutron stars, and other such cosmic entities.
  • These two additional parameters, along with the spectrographic, timing and imaging data, will aid researchers to overall improve the present understanding of the celestial bodies and ultimately unravel some of the unknown mysteries of the Universe.

What is the Polarisation of X-rays and Why Study It?

  • X-rays comprise electric and magnetic waves that are constantly in motion.
  • Being sinusoidal waves, they do not follow a patterned direction of motion.
  • Whereas, a polarised X-ray is both organised and has two waves vibrating in the same direction.
  • When magnetars or black holes emit X-rays, they encounter a wide variety of materials in the Universe.
  • As X-rays pass through the thick cloud of materials, the electric component of the X-ray emits a photon in a changed direction, as it has now undergone scattering.
  • In the process, the new photon has got polarised in a direction perpendicular to the plane formed between the original and scattered photon.
  • The polarisation measurements – angular and degree of polarisation – are believed to provide clues about the bright X-ray emitting sources the nature of these radiations and the complex process they undergo.
  • X-rays are electromagnetic radiation whose wavelength is 0.01-10 nanometres (where 1 nanometre is one-billionth of a metre), corresponding to energies of 100-100,000 electron-volt (eV).
  • Electromagnetic radiation is characterised by an electric field and a magnetic field vibrating perpendicular to each other.
  • The polarisation of electromagnetic radiation refers to the orientation of these two fields as the radiation moves through space.
  • X-rays can be polarised when they get scattered.
  • For example, when an X-ray travelling through space encounters an atom, the electric field of the X-ray can energise an electron, which will then emit a photon.
  • Since X-rays are also photons, the new photon will give the impression that an X-ray photon has been scattered.
  • Polarised X-rays are also produced when the path of a fast-moving charged particle is bent by a magnetic field.
  • Studying these X-rays can reveal which way the magnetic field is pointing, and tracking how these X-rays evolve in time can reveal many things about the body producing such fields, like a pulsar.

How Does XPoSat Compare With X-ray Experiments or Missions Globally?

  • Missions on X-ray polarisation measurements have been a handful, the world over.
  • Some like HX-POL and XL-Calibur have been balloon-based and short-duration experiments by NASA and collaborators.
  • Indian astronomers, using AstroSat which is India’s first astronomy-based space mission launched in September 2015 — performed timing and broadband spectroscopy of X-ray sources but no polarisation studies were performed.
  • The lack of development of highly sensitive and precise instruments makes missions for polarisation measurements of X-rays extremely challenging, thus fewer missions have been attempted so far.
  • In 2021, NASA launched Imaging X-ray Polarimetry Explorer (IXPE).
  • It has been designed to operate and perform X-ray polarisation measurements within the soft X-ray band (2 to 8 keV energy band).
  • Besides complementing IXPE, XPoSat’s payload POLIX will offer an expanded observational energy band, as it is designated to perform X-ray polarisation in the medium X-ray band (8 to 30 keV).

Conclusion

The accomplished launch of XPoSat and the deployment of POLIX mark a substantial advancement in India's commitment to excelling in space-based X-ray astronomy. With the inventive design of POLIX and its capability to investigate lower energy X-rays, coupled with its collaboration with NASA's instrument, Indian astronomers find themselves at the forefront of unravelling the enigmas surrounding pulsars and black holes. As XPoSat embarks on its cosmic scanning mission, the scientific community is eagerly anticipating the valuable insights it is poised to deliver.

Rebel Group ULFA Signs Peace Accord With Centre, Assam Govt (Indian Express)

  • 30 Dec 2023

Why is it in the News?

The Union Ministry of Home Affairs (MHA), the Assam government and the pro-talks faction of the United Liberation Front of Asom (ULFA) signed a memorandum of settlement on Friday.

News Summary:

  • The pro-talks faction of the United Liberation Front of Assam (ULFA) has officially signed a tripartite Memorandum of Settlement recently with the Central government and the Assam government.
  • Chairperson Arabinda Rajkhowa led the ULFA pro-talks faction, which initiated peace talks with the government on September 3, 2011, following the signing of an agreement for the Suspension of Operations with the central and state governments.
  • This Memorandum of Settlement signifies the formal commitment of the ULFA faction to renounce violence and integrate into the mainstream.
  • It's noteworthy that the hardline faction of ULFA, led by Paresh Baruah, remains outside the purview of the peace accord, and Baruah is reportedly residing along the China-Myanmar border.
  • As part of the agreement, Assam will receive a substantial development package, marking a significant step in the peace process.
  • Over the past five years, there have been 9 peace and border-related agreements signed in the Northeast region.
  • In November 2023, a peace agreement was successfully negotiated with the United National Liberation Front (UNLF) in Manipur, a separatist group representing the Meitei community.

Insurgency in Assam: Causes and Dynamics

  • Assam has grappled with insurgency since the 1980s, even after the formation of separate states like Nagaland, Mizoram, Meghalaya, and Arunachal Pradesh.
  • The primary demand of many militant groups in the region has been increased political autonomy, often articulated through calls for separate statehood.

Factors Driving the Insurgency in Assam:

  • Ethnic Complexities: Assam is marked by historical tensions among its indigenous ethnic groups.
  • Autonomous districts like Karbi Anglong and North Cachar Hills are home to 15 recognized tribes, while the rest of the state has 14 tribes.
  • Bodo, Mishing, Karbi, Rabha, Sonowal Kachari, Lalung, Garo, and Dimasa are major tribes, with sustained autonomy movements, especially among Bodo groups.
  • Immigration Challenges: Large-scale immigration of Bengali-speaking Muslims from Bangladesh has fueled tension.
  • Assamese residents perceive this migration as a threat to their identity, culture, and economic stability.
  • Political Dynamics: Movements advocating sub-regional aspirations have clashed with State Governments and Autonomous Councils.
  • Example: The All Bodo Students' Union (ABSU) intensified its movement in 1987, seeking a separate state of Bodoland on the North Bank of the Brahmaputra.
  • Economic Concerns: The region's economic isolation after partition has adversely impacted its economy.
  • The central government’s perception of resource exploitation has fueled sentiments supporting the insurgency.
  • Understanding these complex dynamics is crucial for addressing the longstanding insurgency issues in Assam.

The Dynamic Landscape of Insurgent Groups in Assam:

  • United Liberation Front of Asom (ULFA): ULFA was established in April 1979 with Assamese nationalism as its guiding principle.
  • It promised to free Assam and create an autonomous region called Swadin Asom (Independent Assam) that would be home to the Assamese-speaking ethnic group.
  • Bodo Movement in Assam: The 1960s saw the emergence of the Bodo political movement, advocating for a homeland known as Udyachal for Assam plains tribal communities.
  • The All-Bodo Students Union (ABSU), formed in 1967, became a key advocate for the Bodo cause.
  • Post the Assam Accord in 1985, the ABSU played a pivotal role in reviving the movement, eventually supported by armed groups like the National Democratic Front of Bodoland (NDFB).
  • Bodo Accords (1993, 2003, 2020): Three accords were signed, leading to the formation of the Bodoland Autonomous Council (1993), Bodo Territorial Council (2003), and a truce with NDFB factions (2020).
  • The accords granted legislative, administrative, executive, and financial powers to the councils, recognizing Bodo as an associate official language.
  • Karbi Insurgency: Five major militant groups in Karbi Anglong, including:
  • Karbi People’s Liberation Tiger,
  • People’s Democratic Council of Karbi Longri (PDCK),
  • Karbi Longri NC Hills Liberation Front (KLNLF),
  • Kuki Liberation Front (KLF), and
  • United People’s Liberation Army (UPLA).
  • The insurgency by these groups revolved around the demand for an autonomous state and had taken off in the 1980s.
  • A settlement in 2021 granted greater autonomy, special packages, and a Rs 1,000 crore development package over five years for the Karbi Anglong Autonomous Council.
  • Dimasa Uprising: DNLA, the latest group in Dima Hasao district, engaged in a tripartite agreement.
  • The settlement mirrors the provisions of the Karbi Anglong agreement, focusing on autonomy and special development packages for the Dimasa community.

These insurgent movements, rooted in regional aspirations, have undergone transformations through accords and settlements, aiming at greater autonomy, linguistic recognition, and developmental packages for the respective ethnic communities in Assam.

In conclusion, the recent Memorandum of Settlement between the Union Ministry of Home Affairs, the Assam government, and the pro-talks faction of ULFA is a positive stride towards peace. However, historical patterns warn of potential challenges post-negotiations. To holistically manage the region, establishing a North East Security Council is vital. The persistent demand for sovereignty by the Paresh Baruah-led ULFA (I) remains a significant hurdle, necessitating a nuanced and sustained approach to lasting peace.

What is the Assam Accord?

  • The Assam Accord inked on 15 August 1985, stands as a pivotal Memorandum of Settlement (MoS) resulting from extensive negotiations between the Government of India and representatives of the Assam Movement.
  • This historic accord materialized after a six-year-long agitation, commencing in 1979, led by the All Assam Students’ Union (AASU).
  • The core demand of the protestors, primarily driven by concerns about the influx of Bangladeshi immigrants, was the identification and expulsion of illegal foreigners.
  • In the presence of then-Prime Minister Rajiv Gandhi in New Delhi, the accord marked a turning point.
  • The leaders of the Assam Movement, cognizant of the issue’s complexity, reached a consensus to accept migrants who had entered Assam before 1 January 1966.
  • In a reciprocal gesture, the Government of India acknowledged and addressed the political, social, cultural, and economic apprehensions of the Assamese people.
  • As a significant commitment, the government pledged to review the electoral database, aligning it with the aforementioned date.
  • Additionally, the accord underscored the government's commitment to the identification and deportation of refugees and migrants who entered Assam after 25 March 1971.
  • Thus, the Assam Accord, born out of a prolonged struggle, aimed to address the multifaceted concerns surrounding immigration and safeguard the interests of the indigenous population in Assam.

Severe Drought in the Amazon Rainforests (Indian Express)

  • 19 Oct 2023

Why is it in the News?

Hundreds of fish dead, no drinking water, food or other supplies — the latest spell of drought in the Amazon rainforest has disrupted the lives of tens of thousands of Indigenous people.

Amazon Rainforest Drought:

  • In the period from July 2023 to September 2023, eight Brazilian states experienced the lowest rainfall in over four decades.
  • Projections indicate that rainfall is expected to remain below average until the year's end.
  • This recent calamity further contributes to the ongoing destruction of the Amazon, often referred to as the planet's lungs due to its role in storing over 150 billion metric tonnes of carbon.

Impact of the Drought:

  • Depletion of Water Bodies: The Rio Negro, among the world’s largest rivers, registers a historic low of 13.59 meters.
  • The Madeira River, a crucial Amazon tributary, experiences a decline, causing the suspension of operations at the Santo Antonio hydroelectric dam due to exceptionally low water levels.
  • Loss of Marine Life: Elevated mortality among fish and river dolphins (Boto) results from the drought's impact on water levels.
  • Carcasses contaminate water sources, compelling residents to use compromised water for essential activities like cooking, bathing, and drinking.
  • State of Emergency and Humanitarian Concerns: Brazilian authorities express apprehension about approximately 500,000 people being affected by the end of October.
  • Manaus, the largest city in Amazonas, declares states of emergency in 55 out of 62 municipalities due to acute water shortages.
  • Escalation of Wildfires: The rainforest, now more susceptible due to extreme dry conditions, witnesses a surge in wildfires.
  • Amazonas state records an unprecedented 2,700 blazes this month, marking the highest for October in the past 25 years.
  • Deteriorating Air Quality in Manaus: Smoke from wildfires adversely impacts air quality in Manaus, a city of two million in the heart of the Amazon.
  • Hazardous pollution levels pose health risks, leading to respiratory issues for children and older residents, prompting hospitalisations.

What are the Reasons Behind this Drought?

  • Droughts are not unprecedented in the Amazon, with the most notable recent instance occurring in 2021, marking the driest period in at least 90 years.
  • The current drought, however, appears to be even more severe, attributable to two simultaneous natural phenomena impeding cloud formation and exacerbating the already diminished rainfall levels in the region.
  • Influence of El Niño: El Niño denotes an abnormal warming of surface waters in the equatorial Pacific Ocean.
  • This weather pattern tends to elevate the likelihood of setting temperature records and induces heightened heat extremes across various global regions, including the ocean.
  • Elevated Water Temperatures in the Atlantic Ocean: The other contributing factor is the unusually high water temperatures observed in the northern tropical Atlantic Ocean.
  • Elevated ocean temperatures prompt the ascent of heated air into the atmosphere, reaching the Amazon rainforest.
  • The warmth inhibits cloud formation, resulting in a substantial reduction in rainfall.

Studies Highlighting Concerns for the Future of the Amazon Rainforests:

  • Numerous studies over the years have consistently warned that the Amazon faces an increased risk of prolonged and more frequent droughts due to escalating global temperatures.
  • A 2022 research publication in the Proceedings of the National Academy of Sciences (PNAS) projected that if current fossil fuel consumption rates persist, the rainforest could endure significant droughts in 9 out of every 10 years by 2060.
  • Another study, featured in the journal Nature in 2022, disclosed a concerning trend: Amazon's diminished ability to recover from prolonged droughts over the last two decades, bringing it dangerously close to a tipping point.
  • Crossing this threshold could result in the transformation of the lush green forest into a drier open savanna, releasing substantial stored carbon and contributing to further global warming.
  • With 17 to 20 percent of the Amazon destroyed in the past five decades, urgent measures are imperative to combat deforestation and greenhouse gas emissions, and where feasible, undertake reforestation initiatives in the depleted areas, as advocated by experts.

About Amazon Rainforests:

  • Amazon is the world’s largest tropical rainforest covering over 5.5 million square kilometres.
  • Tropical forests are closed-canopy forests growing within 28 degrees north or south of the equator.
  • Due to the thickness of the canopy (the top branches and leaves of the trees), the Amazon floor is in permanent darkness.
  • Tropical forests are very wet places, receiving more than 200 cm of rainfall per year, either seasonally or throughout the year.
  • The Amazon is found in South America, spanning across Brazil, Bolivia, Peru, Ecuador, Colombia, Venezuela, Guyana, Suriname and French Guiana.
  • Running through the north of the rainforest is the Amazon River — a network of many hundreds of waterways that stretches 6,840km.
  • Around 400-500 indigenous Amerindian tribes call the Amazon rainforest home.
  • It’s believed that about fifty of these tribes have never had contact with the outside world!
  • The Amazon has an incredibly rich ecosystem – there are around 40,000 plant species, 1,300 bird species, 3,000 types of fish, 430 mammals and a whopping 2.5 million different insects. Wow!
  • The Amazon is home to a whole host of fascinating – and deadly! – creatures, including electric eels, flesh-eating piranhas, poison dart frogs, jaguars and some seriously venomous snakes.
  • This area of immense natural beauty plays an important role in limiting climate change. This is because the rich vegetation takes carbon dioxide (a greenhouse gas) out of the air and releases oxygen.

Large Ozone Hole Detected Over Antarctica (The Hindu)

  • 13 Oct 2023

Why is it in the News?

As part of the EU’s environmental monitoring program, the European Space Agency Copernicus Sentinel-5P satellite detected a giant hole in the ozone layer over Antarctica recently.

What is an Ozone Hole?

  • An ozone hole refers to a region in the stratosphere above Antarctica where the ozone layer experiences significant depletion.
  • Contrary to the term "hole," it doesn't imply a complete absence of ozone; rather, scientists use the term metaphorically to indicate an area where ozone concentrations fall below the historical threshold of 220 Dobson Units.
  • The dimensions of the ozone hole over Antarctica fluctuate annually, typically forming in August and dissipating by November or December, driven by distinct climatic conditions in the region.

Mechanism Behind Ozone Hole Formation:

  • The emergence of the ozone hole is linked to the Earth's rotation, creating specific winds over the enclosed Antarctic landmass.
  • The polar vortex, characterized by robust winds around the poles, is a key factor in the dynamics of the ozone hole.
  • During winter, the polar vortex forms due to temperature variations, acting as a barrier that separates polar air from warmer air at lower latitudes.
  • This isolation fosters the formation of polar stratospheric clouds (PSCs), triggering reactions leading to ozone depletion.
  • Chemical processes occurring on the surface of PSCs activate chlorine and bromine compounds, particularly chlorine, acting as catalysts in ozone-depleting reactions.
  • When exposed to sunlight, these compounds catalyze the breakdown of ozone molecules.
  • The size and intensity of the polar vortex directly influence the extent of ozone depletion.
  • As the vortex weakens in spring, the mixing of polar air with warmer air from lower latitudes gradually closes the ozone hole, contributing to the restoration of the ozone layer.

What Caused the Giant Ozone Hole in 2023?

  • Scientists believe this year’s big ozone hole could be due to the volcanic eruptions at Hunga Tongain Tonga during December 2022 and January 2023.
  • In contrast to typical volcanic eruptions that release gases primarily within the lower atmosphere, this specific event ejected a substantial quantity of water vapour into the stratosphere.
  • The presence of water vapour, along with other ozone-depleting elements such as bromine and iodine, had repercussions on the ozone layer through chemical reactions, ultimately modifying its heating rate.

Human-caused Ozone Holes:

  • While this year’s Antarctic ozone hole was likely due to a volcanic eruption, scientists became aware that human activities were creating huge ozone holes in the 1970s.
  • Ground and satellite-based measurements detected the holes, which were caused by the widespread use of chemicals called chlorofluorocarbons.
  • “The culprit behind ozone depletion was not aerosols in aerosol cans, but the propellants we use as gases to propel the solutions inside.
  • These gaseous propellants contain chlorine, which is released high in the stratosphere and depletes the ozone.
  • The world took action after scientists raised alarm over the ozone holes, and quickly.
  • In 1987, The Montreal Protocol was created to protect the ozone layer by phasing out the production of these harmful substances.
  • The protocol was effective as ozone holes got smaller in the decades after ozone-depleting gas emissions were controlled.

Is there any Relation Between Climate Change and Ozone Holes?

  • Ozone depletion is not considered a primary catalyst for global climate change.
  • Nevertheless, there are indications that the rising global temperatures associated with climate change may impact the dynamics of ozone holes.
  • Recent instances of substantial ozone holes have been associated with climate change, particularly the escalation of wildfires.
  • The heightened frequency and intensity of wildfires, often exacerbated by climate change, release more smoke into the stratosphere, potentially contributing to additional ozone depletion.
  • While ozone holes may yield a cooling effect by diminishing the greenhouse gas impact (as the loss of ozone allows slightly more heat to escape into space from that region), they can also disrupt the normal progression of seasons, leading to prolonged wintertime conditions.

What is Ozone (O3)?

  • Formation: Ozone molecules result from the interaction of ultraviolet (UV) radiation from the Sun with O2 molecules.
  • During this process, an O2 molecule is split, and the two liberated oxygen atoms combine with other O2 molecules, forming O3 molecules.
  • While oxygen (O2) constitutes 21% of Earth's atmosphere, ozone makes up less than 0.001%.
  • Ozone Layer: The ozone layer, crucial for life on Earth, is primarily generated in the stratosphere where UV radiation is more intense due to thinner air at higher altitudes.
  • This region, known as the 'ozone layer,' spans approximately 10 to 40 km in altitude, with a peak of around 25 km.
  • Significance of Ozone Layer: The ozone layer plays a vital role in protecting life on Earth by absorbing the most harmful type of UV radiation, UV-B radiation, with wavelengths between 280 and 315 nanometres.
  • Shielding against UV rays is significant in reducing skin cancer rates, as most skin cancers are linked to excessive UV radiation exposure.
  • As UV radiation is absorbed by ozone in the stratosphere, it leads to the heating of the surrounding air, creating the stratospheric temperature inversion.
  • Measurement of Stratospheric Ozone: Stratospheric ozone is quantified as the total amount present in an atmospheric column in Dobson units.
  • One Dobson unit represents the amount of ozone that would form a layer 0.01 mm thick at average sea-level pressure and temperature.
  • Ozone Production:  Most stratospheric ozone is produced at tropical latitudes, and high-altitude winds disperse it globally.
  • Ozone undergoes continual formation and breakdown, with its distribution across the planet being neither uniform nor constant.
  • Natural processes historically balanced ozone formation and breakdown, but human activities in recent decades have accelerated ozone depletion.
  • Ground-level ozone formation contributes to 'photochemical smog,' posing a health hazard when ozone levels become elevated due to its toxic nature.

Qatar court drops death penalty for 8 Indians, Govt says sentences reduced (Indian Express)

  • 29 Dec 2023

Why is it in the News?

A Qatar court has reduced the death sentences awarded to eight former Indian Navy personnel last month in connection with an alleged case of espionage.

What is the Case?

  • Arrest of Eight Navy Personnel: On August 30, 2022, eight former Indian Navy personnel, accompanied by two others, were apprehended under undisclosed charges and subsequently placed in solitary confinement.
    • These individuals were affiliated with Al Dahra Global Technologies and Consultancy Services, a defense services provider company.
    • Sources indicate that the Indian nationals were privately engaged with the company to supervise the induction of Italian small stealth submarines U2I2.
    • The company's previous website, now defunct, mentioned its provision of training, logistics, and maintenance services to the Qatari Emiri Naval Force (QENF).
  • Charges Against the Men: The specific charges against the individuals have not been publicly disclosed; however, media reports suggest that the eight Indians are accused of espionage on behalf of Israel.
  • Death Penalty for Navy Veterans: In March 2023, after multiple unsuccessful bail pleas, the trial for the Navy veterans commenced, culminating on October 26, 2023, with the imposition of the death sentence on all eight men.
  • India's Appeal: In November 2023, the Ministry of External Affairs (MEA) announced the filing of an appeal, revealing that its legal team possessed details of the charges.
    • The Indian ambassador in Doha visited the incarcerated individuals on December 3, providing consular access.
    • This access occurred shortly after Prime Minister Modi met Qatar’s Emir Sheikh Tamim bin Hamad Al-Thani during the COP28 summit in Dubai on December 1.

What Options Has India Explored?

  • One avenue involves legal challenges, a step that has been acknowledged and has temporarily mitigated the sentence.
  • Concurrently, India has actively utilized diplomatic channels to engage with the Qatari authorities.
  • The families have submitted a mercy plea to the Emir of Qatar, leveraging the tradition of pardons granted during Ramadan and Eid, with support from the Indian government.

India-Qatar Bilateral Relations:

  • Economic Ties: In recent years, the trade volume between India and Qatar has witnessed fluctuations.
    • During the fiscal year 2015-2016, trade between the two nations reached an impressive $10 billion.
    • However, recent years have seen a slight decline in trade due to falling gas and oil rates in the international market.
  • Trade Statistics and Import Dependence: In the fiscal year 2022-23, India's total imports from Qatar amounted to $16.81 billion, primarily in fossil fuels like liquefied petroleum gas (LPG), plastics, and petrochemical products.
    • Conversely, India's exports to Qatar during the same fiscal year were valued at $1.97 billion, covering items such as cereals, copper articles, iron and steel products, vegetables, fruits, spices, and processed food items.
  • Investment Interests and Collaborative Projects: Qatari authorities, particularly the Qatar Investment Authority, express interest in investing in India, focusing on infrastructure development, roads, highways, economic corridors, and projects related to gas and fertilizers.
    • India reciprocates with a keen interest in direct investments in liquefied natural gas, chemical industries, fertilizer production, urea, petrochemicals, and infrastructure projects.
  • India's Growing Energy Needs: India, with its growing energy needs, has a robust energy partnership with Qatar, dating back to a 1990 agreement.
    • This commitment involves India purchasing 7.5 million tonnes of LNG annually for 25 years.
    • The collaboration was further strengthened in December 2015, with Qatar agreeing to augment its LNG supply to India by an additional one million tonnes annually.
  • Collaboration in Defence Affairs: India's defense collaboration with Qatar focuses on training, mutual participation in conferences and events, and visits by Indian Navy and Coast Guard vessels.
    • Notably, the joint naval exercise 'Zair-Al-Bahr' showcases significant cooperation between the Indian and Qatari Navies.
    • Both nations are committed to combating the financing of terrorism.
  • Cultural Interaction: The Indian Cultural Centre (ICC) plays a crucial role in overseeing Indian community associations in Doha.
    • Qatar's role as a co-sponsor of the United Nations General Assembly Resolution designating June 21 as the International Day of Yoga is highly valued by India.
  • Indian Diaspora in Qatar: The Indian community in Qatar, numbering approximately 700,000, constitutes the largest expatriate group.
    • Their contributions span diverse sectors, including projects related to the Qatar 2022 FIFA World Cup, and annual remittances to India are estimated at around 750 million dollars.
  • Indispensable Role of Qatar as an LNG Supplier: The cornerstone of the bilateral trade relationship lies in liquefied natural gas (LNG), where Qatar plays a pivotal role by meeting 80% of India's LNG requirements.
    • India imported a total of 19.85 million tonnes of LNG in the fiscal year 2022-23, with approximately 54% of this LNG.
    • This significant reliance on Qatar, both through long-term contracts and spot purchases, underscores the challenge of diversifying India’s sources of LNG.

Challenges in India-Qatar Bilateral Relations:

  • BJP Spokesperson's Controversy: The initial strain in the relationship arose in June 2022 when BJP spokesperson Nupur Sharma made derogatory references to the Prophet on a TV show.
    • Qatar was the first country to object and demanded a public apology from India.
  • Jailing of Navy Personnel: The second significant challenge involves the imprisonment of eight ex-Navy personnel.
    • This development caught New Delhi off guard, particularly given the substantial Indian expatriate community in Qatar, where 800,000 Indians live and work.
  • Israeli-Gaza Conflict: The news of the death penalty for the Indians coincided with heightened tensions in the Middle East due to the Israeli bombardment of Gaza.
    • Qatar, with its strong sympathy for the Palestinians, has played a mediating role, including securing the release of American hostages from Hamas captivity.
    • Qatar's diplomats are actively engaged as regional mediators in the ongoing crisis.

Maximizing Opportunities for Strengthened Relations:

  • Safeguarding Expatriate Workers: India must engage in negotiations aimed at ensuring the protection of the rights and well-being of its expatriate workers in Qatar, who have encountered various labour-related challenges.
  • Cultural Exchange and Soft Power: Recognizing the widespread popularity of Bollywood among Qataris, India should actively explore diverse avenues for cultural exchange to amplify its soft power influence.
    • This cultural diplomacy can serve as a bridge for deeper understanding between the two nations.
  • Cooperation in the Education Sector: The presence of esteemed Western universities in Qatar presents an opportunity for Indian students to access quality education abroad without the usual constraints of long distances and high living costs.
    • Strengthening cooperation in the education sector can further elevate the resilience and depth of the India-Qatar relationship, even in the face of seemingly intractable diplomatic challenges.
  • Collaborative Environmental Sustainability: India and Qatar can forge a collaborative path towards fostering a cleaner and more energy-efficient environment.
    • Joint efforts in environmental sustainability can contribute to shared global goals.

Indian banks reports card: Asset quality improves to fresh 10-year high, balance sheet grows by highest in 9 years (The Hindu)

  • 28 Dec 2023

Why is it in the News?

Indian banks continued to show improvement in their asset quality, with the gross non-performing asset (GNPA) ratio reaching a new decadal low as of September-end, according to a report by the Reserve Bank of India (RBI).

Key Points from the 'Trend and Progress of Banking in India' Report:

  • The Gross Non-Performing Assets (GNPA) ratio of Scheduled Commercial Banks (SCBs) reached a decade-low of 3.9% by the end of March 2023, further declining to 3.2% by the end of September 2023.
  • In the fiscal year 2022-23, approximately 45% of the reduction in Gross Non-Performing Assets (GNPAs) of SCBs was attributed to recoveries and upgrades.
    • The consolidated balance sheet of banks witnessed a notable growth of 12.2% in 2022-23, marking the highest in 9 years.
  • The share of Public Sector Banks (PSBs) in the consolidated balance sheet decreased from 58.6% in March 2022 to 57.6% in March 2023, while private banks saw an increase from 34% to 34.7%.
    • As of March 2023, PSBs accounted for 61.4% of total deposits and 57.9% of total advances.
  • With inflation persisting above the target, there is a possibility that monetary policy could remain in restrictive territory for an extended period.
  • Acknowledging the growing interconnectedness between banks and Non-Banking Financial Companies (NBFCs), the report suggests that NBFCs diversify their funding sources and reduce reliance on bank funding.
  • The central bank expresses concerns about banks lending to borrowers with influence, highlighting moral hazard issues that may compromise pricing and credit management.
  • The Indian banking system is well-positioned for improvement, boasting better asset quality, high capital adequacy, and robust profitability.
  • The financial indicators of NBFCs are anticipated to strengthen further, contributing to the overall resilience of the financial sector.

What are Non-Performing Assets (NPAs)?

  • Non-performing assets (NPAs) refer to loans or advances in which the principal or interest payments have been overdue for a period exceeding 90 days.
    • In the context of banks, loans are considered assets due to the significant income generated through interest payments.
  • When borrowers, whether individuals or corporations, fail to meet their interest obligations, the asset turns 'non-performing' for the bank, as it ceases to contribute to the bank's earnings.
  • As per the Reserve Bank of India (RBI) guidelines, banks must publicly disclose their NPAs and report them to the RBI regularly.

The classification of NPAs includes:

    • Substandard assets: Loans that have been non-performing for up to 12 months.
    • Doubtful assets: Assets that have remained in the substandard category for a period of 12 months.
    • Loss assets: Assets deemed uncollectible, with little value, making their continuation as bankable assets unwarranted.
  • NPA Provisioning involves setting aside a certain percentage of the loan amount as a provision.
    • The standard rate of provisioning in Indian banks ranges from 5-20%, depending on the business sector and borrower's repayment capacity.
    • In the case of NPAs, Basel-III norms require 100% provisioning.

Key metrics for understanding the NPA situation include Gross NPA (GNPA) and Net NPA (NNPA):

  • GNPA: Represents the total value of gross NPAs for a bank in a specific quarter or financial year.
  • NNPA: Obtained by subtracting the provisions made by the bank from the gross NPA, providing the precise value of NPAs after specific provisions.
    • NPA Ratios express NPAs as a percentage of total advances, offering insights into the recoverability of total advances. For example:
  • GNPA ratio: The ratio of total GNPA to total advances.
  • NNPA ratio: Utilizes net NPA to determine the ratio to total advances, considering the specific provisions made by the bank.

Government and RBI Initiatives to Address NPAs:

To tackle the issue of Non-Performing Assets (NPAs), the Indian government has implemented a series of comprehensive measures in collaboration with the Reserve Bank of India (RBI).

  • Establishment of a Bad Bank: National Asset Reconstruction Ltd (NARC), operates as an asset reconstruction company with the primary objective of purchasing distressed loans from banks, thereby alleviating them of the burden of NPAs.
    • Once acquired, NARC endeavors to sell these problematic loans to distressed debt buyers.
    • Additionally, the government has established the India Debt Resolution Company Ltd (IDRCL) to facilitate the sale of stressed assets in the market.
  • Empowering Banks through the SARFAESI Act, 2002: The Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, enacted in 2002, empowers banks and financial institutions to take possession of collateral assets and execute their sale for the recovery of outstanding dues.
    • Crucially, this process does not necessitate intervention from the court.
    • The SARFAESI Act also provides provisions for enforcing security interests, allowing banks to issue demand notices to defaulting borrowers.
  • Holistic Approach with the Insolvency and Bankruptcy Code (IBC), 2016: The Insolvency and Bankruptcy Code (IBC) establishes a comprehensive framework for the resolution of insolvency and bankruptcy in India.
    • It is designed to expedite the resolution process for stressed assets, fostering a creditor-friendly environment.
    • Under the IBC, both debtors and creditors have the authority to initiate insolvency proceedings against defaulting borrowers.
    • The creation of the National Company Law Tribunal (NCLT) and the Insolvency and Bankruptcy Board of India (IBBI) ensures effective oversight of the resolution process.

Significance of NPA Recovery:

  • The recovery of NPAs assumes paramount importance in safeguarding the interests of depositors and stakeholders.
  • Emphasizing compromise settlements, the focus should be on achieving maximum dues recovery with minimal expenses and within an expedited timeframe.
  • In the pursuit of compromise settlements, public sector banks are urged to prioritize the interests of the tax-paying public over the borrowers.
  • This aligns with the broader goal of ensuring that resolutions serve the greater public good.

 

PLI is good for high-end manufacturing, but industrial policy is the best bet for mass job creation (Indian Express)

  • 27 Dec 2023

Why is it in the News?

  • While India has experienced positive outcomes from liberalization efforts, it is important to acknowledge a significant shortcoming—the country did not successfully establish a robust manufacturing foundation and underwent premature de-industrialization.
  • It's crucial to recognize that no nation has achieved industrialization solely through deregulation.
  • To facilitate the structural transformation of the economy, the implementation of a well-crafted industrial policy becomes imperative, with thoughtfully selected import restrictions serving as a key component of this policy mechanism.

The Make in India (MII) Initiative and Its Goals:

  • Make in India Campaign: Officially inaugurated by Prime Minister Modi in September 2014, the Make in India campaign is a strategic effort aimed at advancing manufacturing, attracting foreign direct investment (FDI), fostering innovation, and generating employment opportunities within the nation.

Objectives of the Make in India:

  • Advancing Manufacturing: The initiative strives to elevate India's status to a global manufacturing hub by encouraging both domestic and international companies to establish manufacturing units within the country.
  • Attracting Foreign Investment: Make in India seeks to allure foreign direct investment by streamlining the business environment, simplifying regulatory norms, and providing incentives to foreign companies for investing in India's manufacturing sector.
  • Infrastructure Enhancement: Emphasizing infrastructure development, the campaign focuses on improving key elements such as roads, ports, and logistics to ensure the seamless operation of manufacturing units.
  • Skill Development: Recognizing the pivotal role of a skilled workforce in a thriving manufacturing sector, Make in India incorporates initiatives to enhance the skill sets of the Indian workforce, aligning them with the requirements of modern manufacturing.
  • Innovation and Technology: The campaign places a significant emphasis on fostering innovation and integrating modern technology into manufacturing processes.
    • This strategic approach aims to enhance efficiency and competitiveness in the manufacturing sector.

Differentiating Made in India (MII) from Previous Policies:

  • The Make in India campaign, launched in 2014, represents a departure from the self-sufficiency doctrine that India adopted in the 1970s.
    • It does not bring back memories of the licensing raj or import-substituting industries of the past.
  • While concerns have been expressed about the implementation of Make in India, particularly in certain sectors where tariff duties are raised to provide protection and incentivize the establishment of domestic industries, it is crucial to note that the campaign is fundamentally different.
    • Worries about a potential spread of protectionist tendencies to other sectors, though possibly overstated, are not entirely unfounded, especially for those who experienced the challenges of the 1970s and 1980s.
  • During those years, indiscriminate protectionism led to shortages, black markets, and widespread rent-seeking, all ostensibly in the name of the poor and distributive justice.
    • Producers who benefited from such protection actively advocated for its continuation.
    • Importantly, considering that an average mobile phone manufactured in India consists of 80-85 percent imported content (India Cellular and Electronics Association, 2022), it is empirically evident that Make in India significantly differs from the concept of self-sufficiency.
  • Given these empirical distinctions, it is imperative to move beyond baseless comparisons and recognize the unique nature of the Make in India initiative.

Evaluation of Commitments and Performance of Make in India:

  • A Sizeable Domestic Market Falls Short of Competitiveness in Exports: Make in India (MII) encompasses two related concepts, namely Made in India and Make for India, with MII serving as the foundational and overarching policy.
    • While Made for India focuses on manufacturing for the domestic market, it is essential to recognize that a substantial domestic market alone does not substitute for the crucial aspect of export competitiveness.
      • Historical examples, such as Japan, Korea, and China, underscore that export competitiveness has been a common feature of nations that have experienced significant economic growth.
  • The necessity of an Effective Make in India Operation: Made in India functions as a branding strategy, promoting manufacturers rooted in Indian factors of production—land, labor, capital, entrepreneurship, technology, etc.
    • However, the success of Made in India hinges on the effectiveness of the broader Make in India operation.
  • Alignment with National Manufacturing Policy (NMP 2011): Make in India was launched as a follow-up to prior initiatives, particularly the National Manufacturing Policy (NMP) of 2011, which aimed to cultivate a robust and competitive manufacturing sector.
    • The NMP 2011 identified challenges such as inadequate physical infrastructure, a complex regulatory environment, and insufficient availability of skilled manpower hindering manufacturing growth.
    • The policy set ambitious targets, including raising the manufacturing contribution to GDP from a stagnant 15 percent since the 1980s to at least 25 percent and generating 100 million additional jobs.
  • Dynamic Objectives of Make in India: Beyond the objectives outlined in the NMP 2011, Make in India aspires to elevate India into a global design and manufacturing export hub.
    • In essence, Make in India envisions a transformation where India becomes a manufacturing powerhouse catering to the global market.

Requirement for Supplementary Industrial Policy Measures During Ongoing PLI Implementation:

  • Diversified Articulation Beyond Production Linked Incentive (PLI): Beyond the current implementation of the Production Linked Incentive (PLI) scheme, there is a crucial need for an additional industrial policy tailored to sectors such as toys, readymade garments, and footwear.
    • A more nuanced and sector-specific articulation of industrial policies is essential to meet the unique requirements of diverse sectors.
  • Emphasis on Job Creation: Industrial policy must prioritize job creation, especially in a country abundant in labour but with average educational attainments and skills.
    • Policies should be designed to create productive job opportunities, particularly focusing on labour-intensive manufacturing and opening avenues for women in the workforce.
  • Addressing the Jobless Growth Critique: Acknowledging the criticism of jobless growth, the absence of quality jobs with social protection has contributed to this narrative.
    • Industrial policies should explicitly target mass job creation, considering both job quality and the provision of social protection.
  • Navigating the Challenges of Inclusive Policy Formulation: The government should confront the complexities of formulating industrial policies that foster mass job creation, especially in comparison to policies solely focused on exports.
    • Inclusive policies that align with the overarching goal of creating high-quality jobs and ensuring social protection are essential.
  • Treating Job Creation as the Benchmark: The effectiveness of industrial policies should be assessed based on their impact on mass job creation in India.
    • This underscores the significance of addressing concerns related to jobless growth and prioritizing policies that generate inclusive and high-quality employment opportunities.
  • Confronting Labor Market Challenges: India's labour market research indicates the prevalence of low-paying, low-productivity, and largely informal jobs in the unorganized sector.
    • With more than 99 percent of India's 63 million micro, small, and medium enterprises (MSMEs) in the unorganized sector, there is limited flexibility for creating productive jobs.
  • The assessment of how Make in India, complemented by other policies, has addressed these challenges is crucial.
    • However, the lack of frequent and short-interval official data poses a significant hurdle, necessitating attention to enhance policy efficacy through more regular and timely data collection.

Conclusion

A thorough examination of the nation's circumstances and capabilities is imperative for effective government decision-making.

  • India must formulate an industrial policy that extends the advantages of technological advancements beyond just the privileged laptop class.
  • However, it is essential to exercise caution in steering discussions on industrial policy, avoiding the pitfalls of showmanship, theoretical oversimplification, or misleading historical comparisons.
  • The global landscape demands that India adopt a substantive industrial policy, placing a genuine emphasis on the significance of manufacturing.
  • In this context, it is evident that there is no substitute for a well-considered and serious industrial policy.

Why India cannot Afford to Repeat its Nuclear Weapons Mistakes with AI (Indian Express)

  • 07 Dec 2023

Why is it in the News?

As India hosts the GPAI summit 2023, discussions are raised on the comparison of the nuclear revolution with advancement in Artificial Intelligence.

Context:

  • As India prepares to host the GPAI summit next week, the current discourse on the geopolitics of Artificial Intelligence inevitably revolves around the nuclear experience.
  • India, with its complex nuclear history, now has the opportunity to reflect on and apply lessons from its nuclear journey in addressing the challenges and opportunities presented by AI.

What is Artificial intelligence (AI)?

Artificial Intelligence (AI) is the development of computer systems that emulate human intelligence, encompassing tasks like learning, reasoning, and problem-solving.

  • Significance in Healthcare: AI aids in disease diagnosis, treatment planning, and data-driven healthcare solutions.
  • Economic Impact: AI optimizes financial processes, enhancing trading strategies, risk management, and overall efficiency in various industries.
  • Automation and Efficiency: In manufacturing and logistics, AI-driven automation streamlines processes, improving productivity.
  • Personalized Experiences: AI enhances user experiences through personalized content recommendations, virtual assistants, and language translation.
  • Research and Development: AI accelerates scientific discoveries, innovation, and problem-solving across diverse fields.
  • Autonomous Vehicles: AI contributes to the development of autonomous vehicles, improving safety and efficiency in transportation.
  • Global Impact: AI is a transformative force with the potential to reshape industries, and decision-making, and address complex challenges, underlining its significance in the technological and societal landscape.

Despite its benefits, ethical concerns include data privacy, bias, and potential job displacement, requiring careful management.

Comparisons Between Nuclear Revolution and Ongoing AI Revolution:

  • Profound Consequences: While inherently distinct, the nuclear revolution characterized by atomic bombs in 1945 shares notable similarities with the ongoing AI revolution.
  • Both revolutions carry far-reaching implications, with AI being perceived as potentially exerting even more sweeping and transformative impacts on the economy, society, and polity.
  • Resembling Governance Challenges: Issues surrounding AI governance closely parallel those faced at the onset of the nuclear age.
  • Common challenges encompass managing geopolitical implications, preventing misuse, and establishing international norms and institutions to govern AI.
  • Military AI Regulation Advocacy in Both Contexts: Similar to the nuclear era, there are calls to regulate military applications of AI, including proposals for a freeze on research and development pending a thorough assessment.
  • Despite these concerns, rapid advances in AI persist, echoing the historical trajectory of nuclear technology.
  • AI Dominance Race Discourse: In the discourse on AI, the US and China, akin to the US-Soviet dominance in the nuclear era, emerge as central figures.
  • Agreements between the US and China on AI are considered crucial for navigating the technological revolution.

Actions Taken to Tackle AI Governance Challenges:

  • Efforts to Navigate Competition: The United States is actively addressing competition in military AI with China, initiating discussions on regulatory measures.
  • This includes implementing restrictions on the supply of advanced chips to China, with the aim of slowing down AI development.
  • Proposals for Establishing International Norms and Initiatives: In response to potential negative consequences of the AI revolution, there is a proposal for the creation of international norms, drawing inspiration from the International Atomic Energy Agency (IAEA) established for nuclear energy regulation.
  • Concepts such as the 'International Agency for Artificial Intelligence' (IAAI) and initiatives like the Global Partnership for Artificial Intelligence (GPAI) have been put forward.
  • Formation of Coalitions and Emphasis on Military Deterrence: The United States is actively building coalitions with like-minded partners to discuss AI development and effectively manage its impacts.
  • Initiatives such as GPAI, comprising 28 members, are integral to broader efforts, and alliances are being strengthened for military deterrence, particularly in relation to Russia and China.
  • Global Partnership on AI (GPAI): GPAI, a multi-stakeholder initiative launched in June 2020 with 15 members, seeks to bridge the gap between theory and practice in AI.
  • It supports cutting-edge research and applied activities on AI-related priorities and has since expanded to 29 members, including India.
  • The OECD serves as its secretariat.
  • Recent London AI Summit: The summit, held recently, aimed to harness the potential of AI for new knowledge, economic growth, advancements in human capabilities, and problem-solving.
  • A discussion paper released by the British government highlighted AI-related risks, from the spread of disinformation to potential misuse for harmful purposes.
  • The British Prime Minister emphasized the direct addressing of these concerns, assuring people that their safety would be prioritized while seizing the opportunities for a better future offered by AI.

Guiding Principles for India: Drawing Insights from Nuclear History to Navigate the AI Landscape

  • Pragmatic Stance over Idealism: India's historical pursuit of the "time-bound elimination of nuclear weapons" incurred significant costs, emphasizing the need for a pragmatic and strategic approach in dealing with the complexities of AI.
  • Seizing Collaborative Opportunities: Learning from past missed opportunities in nuclear cooperation, India should actively foster partnerships, particularly with the US, capitalizing on the existing momentum in joint efforts related to AI and emerging technologies.
  • Avoiding Exceptionalism: India's historical inclination towards exceptionalism and pursuing a third way in technological development poses challenges.
  • In the context of AI, recognizing the universality of science and technology is essential, promoting collaboration over isolationist postures.
  • Empowering the Private Sector: Unlike the government-led progress in nuclear and space endeavours, AI's evolution is primarily driven by the private sector in the West.
  • India must enhance the role of the private sector in AI research, development, and innovation for sustained growth.
  • Urgent Reforms for Global Competitiveness: While recent efforts to open up science and technology sectors are commendable, India must prioritize urgent and comprehensive reforms to strengthen its position in the global AI landscape.

Conclusion

When it comes to AI, India's policy is not characterized by the disarmament idealism that shaped its approach to nuclear weapons. Emphasizing pragmatic strategies and harnessing international partnerships are crucial elements that should underpin India's strategic approach to AI development. Recognizing the strategic significance of AI, it is imperative for India to avoid replicating past mistakes made in the realm of nuclear weapons with regard to AI.

Women participation in NREGS continues to rise, by 59% this fiscal (Indian Express)

  • 26 Dec 2023

Why is it in the News?

As per the Periodic Labour Force Survey (PLFS), published by the Ministry of Statistics and Programme Implementation, the female Labour Force Participation Rate has increased in the country in recent years.

News Summary:

  • Recent data highlights a significant surge in women's engagement in the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), reaching its highest point in a decade.
    • In the fiscal year 2022-23, women accounted for 57.47% of person-days, showcasing a notable increase from the previous year's 54.82%.
  • Analyzing the broader landscape, statistics from the NREGS portal for the period up to December 24, 2023, reveal that out of a total of 238.62 crore person-days, women contributed 141.37 crore person-days, constituting an impressive 59.25%.
  • The Periodic Labour Force Survey (PLFS), conducted by the Ministry of Statistics and Programme Implementation, provides further insights into the evolving dynamics of female labor force participation in the country.
    • Notably, the Female Labour Force Participation Rate (LFPR) has witnessed a substantial uptick in recent years, particularly in rural areas.
    • In the rural context, the LFPR soared to 30.5% in 2022-23 (July-June), a significant leap from 18.2% recorded in 2017-18.
  • Complementing this positive trend, the female unemployment rate has experienced a noteworthy decline, dropping to 1.8% in 2022-23 from 3.8% in 2017-18.
    • These statistics collectively underscore a positive trajectory in women's participation and employment, signaling progressive changes in the socio-economic landscape.

What is Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)?

  • The National Rural Employment Guarantee Act (NREGA) came into effect in September 2005.
    • In 2009, an amendment renamed the Act to the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).
  • Mandate: MGNREGA is designed with the primary objective of offering a minimum of 100 days of guaranteed wage employment within a financial year to every rural household whose adult members willingly engage in unskilled manual labor.
    • The operationalization of this guarantee is facilitated through the Mahatma Gandhi National Rural Employment Guarantee Scheme (Mahatma Gandhi NREGS).
  • Funding Structure: As a Centrally-Sponsored Scheme, MGNREGS receives joint financial backing from both the Central government and the State governments.
    • This collaborative funding approach underscores the shared commitment to addressing rural employment challenges.
  • Administrative Oversight: The Ministry of Rural Development is the overseeing authority responsible for the implementation and management of MGNREGS, emphasizing the central role of rural development in realizing the objectives of this significant initiative.

Key Characteristics of the Program:

  • Enshrined Legal Entitlement: MGNREGA establishes a legal assurance for wage employment, granting every rural household the right to enroll in the program. Notably, the scheme mandates that at least one-third of its beneficiaries must be women. Legal provisions are in place to address situations where work is not provided on demand or when there are delays in wage payments, ensuring accountability and fair compensation.
  • Demand-Driven Structure: This initiative operates on a demand-driven framework, responding to the explicit requests for work from wage-seekers. The provision of employment is triggered by the expressed demand, creating a responsive system that aligns with the needs of the community.
  • Decentralized Implementation Model: State governments wield the authority to establish rules and modify relevant state schemes, fostering a decentralized mode of implementation. Gram Panchayats (GPs) play a crucial role by executing at least 50% of the work in terms of cost. Decision-making processes, including plans for works, site selection, and the order in which each task is initiated, occur in open assemblies of the Gram Sabha, ensuring community involvement and transparency.
  • Parliamentary Accountability: An Annual Report, compiled by the Central Employment Guarantee Council (CEGC), detailing the outcomes of MGNREGA, is mandated to be presented annually to the Parliament by the Central Government. The CEGC, established under Section 10 of MGNREGA, is chaired by the Union Minister for Rural Development.
  • Nationwide Coverage: MGNREGA extends its coverage across the entire country, with the exception of districts that boast a one hundred percent urban population, reflecting its comprehensive reach and impact.

Key Accomplishments of the MGNREGA Scheme:

Achievements in 2022-23:

  • Employment opportunities were provided to 11.37 crore households.
  • A total of 289.24 crore person-days of employment were generated, with specific allocations as follows:
    • 56.19% for women
    • 19.75% for Scheduled Castes (SCs)
    • 17.47% for Scheduled Tribes (STs).

What are the Challenges in Implementing the Scheme?

  • Delay and Insufficiency in Funds Disbursement: Many states have not adhered to the mandated 15-day wage disbursement timeline under MGNREGA.
    • Moreover, workers face a lack of compensation for delayed wage payments, transforming the scheme into a supply-based program.
    • Consequently, worker interest in participating has waned.
    • Evidence, including a Ministry of Finance admission, points to insufficient funds as a key factor behind delays in wage payments.
  • Caste-Based Disparities: Notable discrepancies in payment delays exist along caste lines.
    • While 46% of payments to Scheduled Caste (SC) workers and 37% to Scheduled Tribe (ST) workers were completed within the stipulated seven days, non-SC/ST workers experienced a dismal 26% compliance.
    • The adverse effects of caste-based disparities are particularly pronounced in economically challenged states like Madhya Pradesh, Jharkhand, Odisha, and West Bengal.
  • Ineffective Role of Panchayati Raj Institutions (PRIs): Gram Panchayats, lacking autonomy, struggle to implement the act efficiently. Limited decision-making authority hampers their effectiveness in executing MGNREGA.
  • High Number of Incomplete Projects: Delays in project completion and irregular project inspections pose challenges to MGNREGA.
    • Additionally, concerns regarding the quality of work and asset creation persist within the scheme.
  • Fabrication of Job Cards: Issues related to the existence of fake job cards, inclusion of fictitious names, missing entries, and delays in updating job cards contribute to administrative challenges within the program.

Way Forward

  • Enhanced Coordination among Government Departments: Improved collaboration is essential among various government departments and the development of a streamlined mechanism for the allocation and measurement of work.
    • This will contribute to a more efficient and transparent execution of projects.
  • Addressing Gender Pay Disparities: Efforts should be directed towards rectifying discrepancies in payouts, particularly addressing the gender pay gap.
    • Currently, women in the sector earn, on average, 22.24% less than their male counterparts, emphasizing the need for gender-inclusive policies and fair remuneration practices.
  • Prompt Commencement of Public Works: State governments should ensure the prompt initiation of public works in every village.
    • Workers arriving at worksites should be swiftly provided with employment opportunities, minimizing delays and optimizing the scheme's effectiveness.
  • Empowering Gram Panchayats: Gram Panchayats should be equipped with ample resources, authority, and responsibilities to sanction works, meet demands for employment, and authorize timely wage payments.
    • This empowerment is crucial to eliminate delays in payments and enhance the efficiency of grassroots administration.
  • Convergence with Other Government Initiatives: MGNREGA should be strategically aligned and integrated with other government schemes, such as the Green India initiative and Swachh Bharat Abhiyan.
    • This convergence will maximize the impact and effectiveness of these programs, fostering a synergistic approach towards holistic rural development.

Good Governance Day: Last-mile delivery, leaving no one behind is key to growth (Indian Express)

  • 25 Dec 2023

Why is it in the News?

Good Governance Day 2023 is being celebrated today on the birth anniversary of former Prime Minister Atal Bihari Vajpayee, which falls on December 25th.

About Good Governance Day:

  • December 25 marks the birth anniversary of the late Prime Minister and Bharatiya Janata Party leader, Atal Bihari Vajpayee.
  • Origin: In 2014, the Prime Minister of India Narendra Modi declared December 25 as "Good Governance Day" to be celebrated nationwide.

Significance of Good Governance Day:

  • Raising Governance Awareness: Good Governance Day aims to raise awareness among citizens regarding government accountability and efficient administration.
  • Equitable Treatment of Citizens: This day emphasizes the fair and prompt delivery of various government services to ensure equitable treatment for the country's residents.
  • Advancement of e-Governance: National Good Governance Day endeavors to advance "e-Governance" with the official event slogan being "Good Governance through e-Governance.

What is Good Governance?

  • Governance encompasses the decision-making process and the subsequent implementation (or lack thereof) of those decisions.
    • It manifests in various contexts, including corporate governance, international governance, national governance, and local governance.
  • It is characterized as "the manner in which power is exercised in the management of a country's economic and social resources for development."
    • This concept, rooted in historical perspectives, was elaborated by Chanakya in the Arthashastra.
  • Foundation of Citizens Centric Administration: The cornerstone of a citizens-centric administration lies in the principles of good governance, emphasizing transparency, accountability, and equitable societal development.

8 Principles of Good Governance:

  • Participation: Ensures the inclusion of diverse perspectives, including men, women, vulnerable sections, backward classes, minorities, etc.
    • Upholds freedom of association and expression.
  • Rule of Law: Impartial enforcement of the legal framework, particularly in human rights laws.
    • A foundation for preventing the 'law of fish,' where the strong prevail over the weak.
  • Consensus Oriented: Facilitates decision-making that aims for a common minimum acceptable to everyone, fostering a broad consensus.
    • Mediates differing interests toward a mutually beneficial outcome.
  • Equity and Inclusiveness: Strives for an equitable society, ensuring opportunities for all to enhance or maintain their well-being.
  • Effectiveness and Efficiency: Focuses on processes and institutions that yield results meeting the community's needs.
    • Maximizes the effective utilization of community resources for optimal output.
  • Accountability: Demands accountability from governmental institutions, private sectors, and civil society organizations to the public and institutional stakeholders.
    • Aims for governance that serves the betterment of the people.
  • Transparency: Requires accessible, understandable, and monitored information.
    • Advocates for a free media and public access to information.
  • Responsiveness: Dictates that institutions and processes serve all stakeholders within a reasonable timeframe.

What is the Significance of Good Governance?

  • Safeguarding Public Interests: The implementation of good governance practices is crucial for safeguarding the interests of the public.
  • Optimal Resource Utilization: Good governance empowers organizations to maximize the efficient utilization of available resources, facilitating the delivery of high-quality services.
  • Ensuring Checks and Balances: Through good governance practices, mechanisms are established to prevent the undue exercise of power and authority, maintaining a system of checks and balances.
  • Facilitating Public Engagement: The active involvement of the public in the governance process becomes achievable when good governance practices are firmly in place.

What are the Challenges to Good Governance in India?

  • Corruption: The pervasive level of corruption in India is widely recognized as a substantial impediment to enhancing the quality of governance.
  • Empowerment of Women: The inadequate representation of women in government institutions and related sectors poses a significant challenge to achieving gender equality.
  • Delayed Justice: Ensuring timely justice for citizens is a fundamental right, but numerous factors, such as a shortage of personnel and logistical resources within the legal system, contribute to delayed justice.
  • Criminalization of Politics: The intertwining of the political process with criminal elements and the collaboration between politicians, civil servants, and business entities negatively impact public policy formulation and governance.
  • Centralization of Administrative System: Efficient functioning of lower-level governments, particularly Panchayati Raj Institutions (PRIs), depends on adequate empowerment.
    • The existing challenges involve insufficient devolution of funds and personnel to carry out constitutionally assigned functions.

What are the Initiatives for Enhancing Good Governance in India?

  • National e-Governance Plan: With a vision to make government services easily accessible to the common man, the National e-Governance Plan aims to ensure efficiency, transparency, and reliability of services at affordable costs.
    • The plan focuses on meeting the basic needs of the public through widespread service delivery outlets.
  • Good Governance Index (GGI): Launched by the Ministry of Personnel, Public Grievances & Pensions, GGI serves as a comprehensive tool to evaluate the state of governance in the country.
    • It systematically analyzes the impact of various interventions initiated by State Governments and Union Territories.
  • Right to Information Act, 2005: This crucial legislation plays a pivotal role in fostering transparency within governance by granting citizens the right to access information.
    • The Right to Information Act, 2005, empowers individuals to seek and receive information, contributing to a more transparent and accountable system.

About Atal Bihari Vajpayee

  • Atal Bihari Vajpayee, the 10th Prime Minister of India, distinguished himself not only as a statesman but also as a revered poet and literary figure.
  • His association with the Rashtriya Swayamsevak Sangh (RSS), the ideological precursor of the BJP, further shaped his political journey.
  • Early Life: Born on December 25, 1924, in Gwalior, Madhya Pradesh, Vajpayee joined the RSS in 1939, transitioning into a full-time role in 1947.
    • His literary prowess led him to collaborate with Deen Dayal Upadhyaya on various publications, marking the beginning of his impactful career.
  • Political Ascension: Vajpayee assumed the role of national president of the Jana Sangh in 1968 following Deen Dayal Upadhyaya's demise.
    • His political journey commenced with his election to the Lok Sabha from the Balrampur seat in the 1957 general election, where his eloquence positioned him as a defender of Jana Sangh's policies.
  • Key Political Milestones: Post-emergency, Vajpayee played a vital role in the formation of the Janata Party, securing victory in the 1977 general elections and subsequently serving as the External Affairs Minister.
    • The transformation of Jana Sangh into the Bharatiya Janata Party (BJP) in 1980 marked a significant phase under his leadership, with the party gaining electoral prominence.
  • Political Tenures: Vajpayee's political career saw him elected ten times to the Lok Sabha and twice to the Rajya Sabha, representing constituencies such as Balrampur, New Delhi, Gwalior, and Lucknow.
    • His administrative journey commenced as the External Affairs Minister in 1975, with commendation for his UN General Assembly speech in Hindi.
  • Prime Ministerial Stints: Vajpayee served as the Prime Minister of India in three distinct tenures:
    • A brief 13-day term in 1996
    • 13-month period from 1998 to 1999, and
    • A full term from 1999 to 2004.
  • Notable Achievements: Vajpayee's administration left an indelible mark with achievements such as the Pokhran Nuclear Test, success in the Kargil War, the implementation of the Golden Quadrilateral project, the Pradhan Mantri Gramin Sadak Yojana, and the Sarva Siksha Abhiyaan.
  • Diplomatic Outreach: Vajpayee's diplomatic efforts included a groundbreaking bus journey to Lahore to meet with Pakistani Prime Minister Nawaz Sharif, signaling a commitment to improving relations.
  • Honors and Recognition: Atal Bihari Vajpayee was bestowed with prestigious honors, including the Bharat Ratna in 2015, recognition for his role in the Bangladesh Liberation War, and the Order of Ouissam Alaouite from Morocco.
    • Additionally, the Government of India designated his birth anniversary as Good Governance Day in 2014.

WHO prequalifies a second malaria vaccine, a significant milestone in preventing the disease (WHO)

  • 22 Dec 2023

Why is it in the News?

The World Health Organization (WHO) on Thursday added the R21/Matrix-M malaria vaccine, developed by Oxford University and manufactured by Serum Institute of India, to its list of prequalified vaccines.

News Summary:

  • The R21/Matrix-M malaria vaccine, developed by Oxford University and produced by the Serum Institute of India, has received prequalification from the World Health Organization (WHO), marking a significant step in global efforts to combat malaria.
  • This achievement follows the prequalification of the RTS, S/AS01 vaccine in July 2022, making R21 the second malaria vaccine to gain the WHO's approval.
    • Prequalification means larger access to vaccines as a key tool to prevent malaria in children.
  • The WHO employs rigorous international standards during the prequalification process, conducting a comprehensive evaluation to ensure the safety, efficacy, and adherence to global manufacturing standards of the vaccines.
  • Ongoing measures, such as regular re-evaluation, site inspections, and targeted testing, are implemented to uphold prequalified vaccines’ continued safety and effectiveness.

What is a Prequalified Vaccine?

  • The World Health Organization (WHO) defines a prequalified vaccine as one that has successfully completed a comprehensive three-step process prior to approval.
    • Thorough Data Evaluation: The first step involves a meticulous examination of relevant data associated with the vaccine.
    • Sample Testing: The second step includes rigorous testing of vaccine samples.
    • Manufacturing Site Inspection: The final step encompasses an inspection of the pertinent manufacturing sites by WHO.
  • Only when the outcomes of these steps are positive does the vaccine earn inclusion in the WHO list of Prequalified Vaccines?

What is Malaria?

  • Malaria is an infectious disease caused by the Plasmodium parasite, transmitted to humans through the bites of infected female Anopheles mosquitoes, which are active mainly during the night.
  • While there are numerous types of Plasmodium parasites, only five affect humans and cause malaria.
  • Plasmodium falciparum: Predominantly found in Africa, it is the most common and lethal malaria parasite globally, responsible for the majority of malaria-related deaths.
  • Plasmodium vivax: Primarily found in Asia and South America, this parasite causes milder symptoms than Plasmodium falciparum but can persist in the liver for up to three years, leading to potential relapses.
  • Plasmodium ovale: Relatively uncommon and typically found in West Africa, this parasite can remain dormant in the liver for several years without causing symptoms.
  • Plasmodium malariae: Rare and primarily found in Africa.
  • Plasmodium knowlesi: Extremely rare and identified in certain parts of Southeast Asia.

Malaria Transmission:

  • Upon being bitten by an infected mosquito, the Plasmodium parasite enters the bloodstream, travels to the liver, and matures.
  • It then re-enters the bloodstream, invading red blood cells where it undergoes multiplication.
  • Periodically, infected blood cells burst, releasing more parasites into the bloodstream.
  • While mosquitoes can become infected by biting an already infected person, malaria does not spread directly from person to person.

Symptoms of Malaria:

  • The signs and symptoms of malaria encompass fever, chills, general discomfort, headache, nausea, vomiting, diarrhoea, abdominal pain, muscle or joint pain, fatigue, rapid breathing, rapid heart rate, and cough.
  • Recognizing these symptoms is crucial for prompt diagnosis and treatment.

What is the Status of Malaria in India?

  • Given its predominantly tropical climate, a significant portion of India has a historical prevalence of malaria, and the country holds the distinction of being where Nobel Prize winner Sir Ronald Ross discovered the malaria parasite cycle involving Anopheles mosquitoes as the definitive host.
  • While India has made substantial progress in the direction of malaria elimination, there remains a considerable journey ahead.
  • According to the World Malaria Report 2023, India contributed to 66% of malaria cases within the World Health Organization’s South-East Asia region in 2022.
  • Additionally, India and Indonesia jointly accounted for approximately 94% of all malaria-related deaths in the region last year.
  • The report highlighted that nearly 46% of all cases in the region were attributed to Plasmodium vivax, a protozoal parasite and human pathogen.

What are the Challenges in Malaria Elimination?

  • Eliminating malaria in India faces several challenges, primarily stemming from the predominant engagement of the private sector in diagnosing and treating the disease.
    • This sector often encounters issues related to misdiagnosis and mistreatment.

Key challenges include:

  • Limited Regulation in the Private Sector: Private doctors and clinics operate without an obligation to adhere to government guidelines, utilize recommended drugs, or report malaria cases to state authorities.
  • Disproportionate Malaria Treatments in the Private Sector: In 2015, a substantial 86 million malaria treatments were procured in the private sector, in stark contrast to the meagre 2 million in the public sector.
  • Proliferation of Artemisinin Monotherapy: The private sector annually acquires nearly 10 million injections of Artemisinin Monotherapy, a treatment strongly discouraged in India and globally due to its role in accelerating the development of lethal drug resistance.
  • Irony of Drug Misuse: Remarkably, India, the largest supplier of high-quality approved malaria drugs globally, grapples with the ironic misuse of malaria drugs within its own borders.

Challenges in Creating a Malaria Vaccine:

The progress toward developing a malaria vaccine encounters various impediments:

  • Absence of a Conventional Market: The absence of a conventional market poses a significant hindrance to the development of a malaria vaccine.
  • Limited Developer Engagement: The involvement of only a few developers further complicates the landscape for malaria vaccine development.
  • Technical Complexity: The technical intricacies associated with creating a vaccine against a parasitic infection, such as malaria, present substantial challenges.
  • Complexity of Malaria Parasites' Life Cycle: Malaria parasites exhibit a complex life cycle, and there exists a limited understanding of the intricate immune response to malaria infection.
  • Genetic Complexity of Malaria Parasites: The genetic complexity of malaria parasites, generating thousands of potential antigens, adds an additional layer of difficulty to the development of an effective vaccine.

Initiatives Taken by India for Malaria Eradication:

  • Since 2000, India has successfully reduced malaria cases by more than half and malaria-related deaths by over 66%.
  • In 2016, the country introduced its inaugural National Framework for Malaria Elimination (2016-2030), outlining a vision for a malaria-free nation by 2027 with complete elimination targeted by 2030.
  • In 2019, the Government of India demonstrated its commitment by increasing funding for the National Vector Borne Disease Control Programme by over 25%.
  • Furthermore, India augmented its support as a donor to the Global Fund to Fight AIDS, Tuberculosis, and Malaria, reaffirming its dedication to combating these vector-borne diseases on a global scale.

Multidimensional Poverty Index reduction under the NDA is flawed (The Hindu)

  • 08 Dec 2023

Why is it in the News?

The Multidimensional Poverty Index exaggerates the National Democratic Alliance’s success in fighting deprivation.

Context:

  • Some critics argue that the initiatives undertaken by the NDA Government might not have comprehensively tackled the various dimensions of poverty.
  • Additionally, there are concerns that the reported successes may not be accurately reflected in the Multidimensional Poverty Index (MPI), raising questions about its alignment with the ground reality of deprivation.
  • It is crucial to delve deeper into the methodologies and criteria employed for measuring multidimensional poverty to ascertain their resonance with the nuanced challenges confronted by the population.
  • Nobel Laureate Amartya Sen introduced a comprehensive and innovative outlook on well-being, emphasizing capabilities and functionings, commonly referred to as the capability approach.

What is Amartya Sen's Capability Approach?

  • Amartya Sen's Capability Approach serves as a normative framework for assessing individual well-being and societal arrangements.
    • Rather than focusing on happiness, preferences, or resources, this approach directs attention to the genuine opportunities and freedoms available to individuals in realizing lives aligned with their values.
  • Sen's Capability Approach comprises two central elements: functionings and capabilities.
    • Functionings represent valuable states of being and doing that an individual can attain, such as good health, education, or social engagement.
    • On the other hand, capabilities encompass the array of alternative functionings that individuals can choose from within their personal and social contexts.
  • Illustratively, an individual's capability may extend to being either well-nourished or undernourished, contingent upon factors like access to food and dietary choices.
    • Sen argues that the capability approach offers a superior means of evaluating human welfare compared to other approaches like utilitarianism and resourcism, which he deems either excessively narrow or insufficiently attuned to the diversity and intricacy of human experiences.
  • Utilitarianism centres around choices leading to the greatest happiness or satisfaction of desires, while resourcism concerns the distribution of resources like income, wealth, or goods in society.
    • According to Sen, the ultimate aim of development should be the expansion of people's capabilities, surpassing mere considerations of income or utilities.
  • Amartya Sen's Capability Approach has notably influenced the development of the Human Development Index.

What is the Human Development Index (HDI)?

  • HDI serves as a statistical tool employed to assess a country's overall achievements across its social and economic dimensions.
  • It is published by the United Nations Development Programme (UNDP).
  • It stands as the second most widely utilized indicator for gauging economic progress, following national income statistics (GDP).
  • Components: HDI comprises three key components, namely:
    • Health, quantified by life expectancy at birth;
    • Education, determined by a combination of mean years of schooling and expected years of schooling; and
    • Income, evaluated by gross national income per capita (at purchasing power parity).
  • Calculation: The ultimate score is computed as a geometric mean of the aforementioned three categories.

What is the Multidimensional Poverty Index (MPI)?

  • The Multidimensional Poverty Index (MPI) is an indicator of poverty that takes into account diverse aspects of well-being, extending beyond monetary considerations or income alone.
    • Originating from collaborative efforts between the Oxford Poverty and Human Development Initiative (OPHI) and the United Nations Development Programme (UNDP), the MPI offers a holistic perspective on poverty by incorporating a range of factors contributing to deprivation.
  • In assessing poverty, the MPI identifies individuals or households as multidimensionally poor when they experience deprivation across various indicators within different dimensions of well-being.
    • These dimensions typically encompass health, education, and the standard of living. By considering a broad spectrum of factors, the MPI provides a nuanced and comprehensive understanding of poverty.

What is the Current Status of MPI?

  • Regrettably, the United Nations Development Programme (UNDP) has chosen to adopt a capabilities-based approach to formulate a comprehensive measure of human development, applying uniform weights to the three primary components—health, education, and standard of living, along with their sub-indices.
    • Under this methodology, both NITI Aayog and the UNDP recently released the National Multidimensional Poverty Index/MPI: A Progress Review 2023, mirrored in the UNDP Report titled "Making Our Future: New Directions for Human Development in Asia and the Pacific," unveiled on November 7, 2023.
  • However, these reports share the same shortcomings as the UNDP human development index, primarily stemming from aggregation with uniform weighting.
    • Notably, the narrative surrounding the MPI exacerbates these distortions.
  • Surprisingly, the MPI 2023 estimates indicate a nearly halved value for India's national MPI and a decline from 24.85% to 14.96% between 2015-16 and 2019-21.
    • This substantial reduction of 9.89 percentage points suggests that approximately 135.5 million people have transitioned out of poverty during this period.
    • Furthermore, the intensity of poverty, gauging the average deprivation among individuals in multidimensional poverty, decreased from 47.14% to 44.39%.

Why the Reduction in MPI Numbers Under the Current Government is Flawed?

  • Misleading and Inadequate Information: The MPI relies on data from the National Family Health Surveys (NFHS) 4 and 5, which are deemed insufficiently detailed for accurate estimation.
    • NFHS 5 data is particularly questionable due to its suppression, driven by discrepancies in open defecation estimates conflicting with official claims of complete elimination.
  • Ideally, combining NFHS 4 and 5 with the 75th Round of the National Sample Survey (NSS) on household consumption expenditure should have provided a more comprehensive perspective.
    • However, this was abandoned as leaked poverty estimates indicated an increase.
  • Compounding the skepticism is the profound impact of the COVID-19 pandemic in 2020-21.
    • The widespread loss of livelihoods, reverse migration fatalities, and inadequate access to vaccines and medical care have created a substantial economic shock, hindering India's recovery.
    • For instance, GDP growth has plummeted from 8% in 2015-16 to 3.78% in 2019-20, reaching -6.60% in 2020-21, along with a decline in per capita income.
  • Greater Emphasis on Covariates: Comparing the elasticities of MPI with respect to various covariates reveals that the most significant reduction in MPI is attributed to higher State per capita income.
    • However, due to a drastic income decrease, MPI has spiked.
    • Urban location follows in importance, with a 1% increase resulting in a 0.90% MPI increase, reflecting the challenges associated with rural-urban migration and the growth of substandard living conditions.
  • Both healthcare and education expenditure are associated with lower MPI, with education exhibiting a higher elasticity, implying that a 1% increase in education spending reduces MPI more than a comparable increase in healthcare spending.
  • Reduction Between 2015 and 2019-21 is Considerably Lower than the Official Estimate:
    • Some research suggests that the reduction between 2015 and 2019-21 is notably lower than the official estimate, standing at 4.7 percentage points compared to the reported 9.89 percentage points.
    • A selective review of MPI estimates indicates a rise in poverty in Uttar Pradesh, India's most populous state, by over seven percentage points.
    • Among states that went to elections in November (Chhattisgarh, Madhya Pradesh, Mizoram, Rajasthan, and Telangana), MPI fell in Chhattisgarh (by over six percentage points), in Rajasthan (by two percentage points), and significantly in Madhya Pradesh (by about eight percentage points).

What Steps Should Be Taken in order to Improve MPI?

  • Adjustment for Income Variability: Given the substantial decrease in State per capita income causing a surge in MPI, consider implementing mechanisms to account for income fluctuations.
    • This may involve incorporating smoothing techniques or introducing a lagged income variable to capture economic effects over time.
  • Dynamic Impact of Urban-Rural Migration: Recognize the dynamic impact of factors on urban locations, particularly in light of the reverse migration during the COVID-19 pandemic.
    • Develop models that reflect changing patterns of rural-urban migration and its influence on living conditions and MPI.
  • Focus on Education Expenditure: Emphasize expenditure on education, as both healthcare and education spending are linked to lower MPI.
    • Notably, the elasticity of education is higher, suggesting that a 1% increase in education reduces MPI more than a comparable increase in healthcare.
    • Given the reported decline in state-level educational expenditure, a rise in MPI is likely.
  • Mitigate the Impact of MPs with Criminal Cases: Recognize and address the correlation between the share of Members of Parliament with criminal cases and higher MPI.
    • Explore strategies such as policy initiatives to curb corruption, enhance transparency, and address challenges posed by criminal elements within legislative bodies.
    • Studies indicate that when the share of MPs with criminal cases exceeds 20%, the MPI tends to be higher.
  • Sensitivity Analysis: Conduct sensitivity analyses to test the robustness of the MPI model.
    • This involves varying key parameters to understand how changes in inputs impact results, providing insights into the stability and reliability of MPI calculations.
  • Policy Recommendations: Utilize findings to inform policy recommendations targeting identified drivers of poverty.
    • Advocate for policies promoting income stability, targeted investments in education and healthcare, and measures to combat corruption and criminality within legislative bodies.

Conclusion

Enhancing the Multidimensional Poverty Index (MPI) requires proactive measures. Addressing income variability, acknowledging dynamic urban-rural migration impacts, and prioritizing education expenditure is pivotal. Additionally, mitigating the influence of MPs with criminal cases and conducting sensitivity analyses for robustness are essential steps. Ultimately, informed policy recommendations should focus on promoting income stability, targeted investments in education and healthcare, and tackling corruption to advance holistic poverty reduction strategies.

Manipur's UNLF Signs Peace Pact with Govt. (The Hindu)

  • 30 Nov 2023

Why is it in the News?

The Union and Manipur governments have signed a peace agreement with the United National Liberation Front (UNLF), a banned Meitei extremist organisation which is also the oldest armed group based in the Manipur valley, Union Home Minister Amit Shah said on Wednesday.

News Summary:

  • Manipur's oldest valley-based armed group UNLF that has been fighting for a sovereign land following the post-independence merger of the erstwhile kingdom with India has now signed a tripartite peace deal with Centre and the Manipur Govt.
  • It is a significant step towards lasting peace in Manipur, which shares a long border with junta-ruled Myanmar and serves as India's main surface transport gateway to Southeast Asia, thus playing a key role in national security.
  • The Centre in the announcement of the peace agreement described the UNLF as a "valley-based" armed group to indicate its origins in the state capital Imphal Valley and other districts not classified as hill areas.
  • Similarly, at least 25 hill-based insurgent groups are already under a tripartite peace deal called the suspension of operations (SoO) agreement.

Key Highlights of the Peace Deal:

  • While the details of the deal haven't been disclosed publicly, experts indicate that the current agreement predominantly revolves around the suspension of operations (SoO).
  • This means that both the UNLF and security forces will refrain from engaging in operations against each other.
  • In the upcoming stages, specific areas will be designated to establish camps for UNLF within the valley.
  • In these camps, UNLF members will reside alongside their arms and ammunition, all supervised by the Manipur government and armed forces.
  • The discussions for a comprehensive peace accord between the government and UNLF will persist, with the focus on advancing after the successful implementation of the SoO arrangements.

What is the United National Liberation Front (UNLF)?

  • Formation: The UNLF was formed in November 1964 by Khalanlang Kamei as president, Thangkhopao Singsit as vice president, and A Somarendro Singh as general secretary.
  • It set up its armed wing the Manipur Peoples' Army (MPA) in February 1990.
  • Objectives: The UNLF favoured a long-term program to secede from India under the leadership of Arembam Samarendra Singh, form an alliance mainly with China and gradually capture political power with the help of an indoctrinated young population and the intelligentsia.
  • It aimed at reclaiming the Kabow Valley in Myanmar.
  • Personnel And Weapons: The UNLF split into two factions due to internal differences.
  • Jointly, the two factions are estimated to have 400-500 personnel with over 500 weapons of mixed types.
  • Links With Other Valley-Based Armed Groups: The UNLF was a constituent of the Coordination Committee, known as CorCom, which is an umbrella body of earlier six and currently four groups - RPF/PLA, PREPAK, and PREPAK/PRO.
  • The UNLF is an "unlawful association" under the Unlawful Activities (Prevention) Act.
  • The UNLF had been carrying out its activities, including violence and propaganda jointly in consultation with the other constituents of CorCom.
  • The close association of these constituents was one of the reasons for valley-based armed groups not responding to offers of coming overground and joining the mainstream.
  • Areas Of Operation: All valley districts of Manipur - Imphal East, Imphal West, Thoubal, Bishnupur, Jiribam, and Kakching, and some Kuki and Vapiphei-dominated villages in the hill districts of Manipur.
  • The UNLF's camps, training centers, hideouts, and safehouses are in the Sagaing region of Chin State and Rakhine State in Myanmar.
  • The UNLF had been able to operate freely within Myanmar allegedly due to its close links with officials of the Myanmar military.
  • Linkages and Front Organisations: The UNLF, being the oldest valley-based armed group, had wielded a significant influence on public issues.
  • Most of the impact was through the front organisations that it used to mobilise public protests on key matters.
  • Return To Mainstream: The senior leaders of the UNLF responded favourably to the Centre's offer to join the mainstream for the first time in 2020.
  • More than 400 personnel with an equal number of weapons joined the peace process, which will have a significant impact on the security scenario of Manipur and the northeast region.

Insurgency in Manipur:

  • Manipur is currently experiencing an armed conflict between India and various separatist rebel groups.
  • This insurgency is a part of the broader Insurgency in Northeast India, encompassing aspects of both a national liberation war and an ethnic conflict.
  • Historical Background of Manipur: Post the brief Anglo-Manipur War of 1891, the Kingdom of Manipur came under British rule and became a British protectorate.
  • In October 1949, Manipur joined India and achieved separate statehood in 1972.
  • Rise of Insurgency: Manipur's integration into India led to the emergence of several insurgent organizations advocating for an independent state within Manipur's borders, rejecting the merger with India as involuntary.
  • The insurgency issue arose in the late 1960s and 1970s, contrasting with the peaceful merger period.
  • The United National Liberation Front (UNLF), the first separatist faction, was established in November 1964.
  • Currently, the region faces challenges from multiple insurgent groups.

What are the Factors Behind the Rise of Insurgency in Manipur?

  • Forced Merger with India: The roots of separatist insurgency in Manipur can be traced to perceived discontent arising from the alleged "forced" merger of Manipur with the Union of India.
  • The delay in granting full-fledged statehood further fueled dissatisfaction.
  • Despite merging in 1949, Manipur attained statehood only in 1972.
  • Rise of Militancy: Subsequent years witnessed the formation of various militant groups, including the People’s Liberation Army (PLA), People’s Revolutionary Party of Kangleipak (PREPAK), Kangleipak Communist Party (KCP), and Kanglei Yawol Kanna Lup (KYKL). These valley-based outfits advocate for an independent Manipur.
  • Ethnic Conflict: Despite the hills comprising nine-tenths of Manipur's geographical area, they are sparsely populated.
  • The majority of the state's population resides in the valley, with the Meitei community dominating.
  • While the surrounding hill districts are inhabited by Nagas and Kukis.
  • Ethnic clashes between Nagas and Kukis in the early 1990s led to the formation of several Kuki insurgent groups.
  • Over time, their demand shifted from a separate Kuki state to a Territorial Council.
  • This conflict's continuation gave rise to smaller outfits like the Zeliangrong United Front (ZUF), People’s United Liberation Front (PULF), and other splinter groups.
  • Greater Nagalim Demand: The Nagalim or Greater Nagaland demand encompasses Naga-inhabited areas of Manipur, while the Meitis strive to preserve the historical integrity of a single geographic entity that has endured for centuries.
  • Insufficient Socio-Economic Progress: Due to its challenging topography, the state has faced persistent challenges in achieving economic development and socio-economic transformation.
  • Throughout the years, persistent corruption, fund mismanagement, and the neglect to empower the general populace have contributed to a growing sense of discontent.

What are the Steps Taken by the Government?

Military Measures:

  • AFSPA Implementation: In 1980, the entire Manipur was declared a "disturbed area," prompting the imposition of the contentious Armed Forces Special Powers Act (AFSPA).
  • This act, aimed at suppressing insurgency, remains in effect to date.
  • Operation All Clear: The Assam Rifles and the army executed "Operation All Clear" in the hill areas, neutralizing many militant hideouts.
  • However, some relocated to the valley.

Ceasefire Arrangements:

  • In 1997, the National Socialist Council of Nagaland-IM (Isak-Muivah) initiated a ceasefire agreement with the Government of India, and ongoing peace talks persisted.
  • Kuki Outfits: Under the Kuki National Organisation (KNO) and United People’s Front (UPF), Kuki outfits signed tripartite Suspension of Operation (SoO) pacts with the Governments of India and Manipur on August 22, 2008.
  • Some smaller outfits have entered SoO agreements with the state government, leading to rehabilitation programs.
  • Valley-Based Militant Outfits: Significant valley-based militant groups like UNLF, PLA, and KYKL, among others, have not yet participated in negotiations with the government.

What is the Current Situation?

  • One faction of the UNLF, led by Koireng, remains resistant to engaging in talks.
  • Withdrawal from Suspension of Operations (SoO): In 2008, a tripartite Suspension of Operations (SoO) agreement involving the Centre, Manipur state, and Kuki-Zomi insurgent groups was established.
  • The primary goal was to facilitate political dialogue. However, in March 2023, the Manipur government withdrew from the agreement with the Zomi Revolutionary Army and the Kuki National Army.
  • The decision was attributed to their alleged influence in fostering agitation among forest encroachers.

Way Forward

  • Effective Border Management: Prior to implementing any counter-insurgency policies or operations, proper management of the Indo-Myanmar international border is imperative.
  • Promoting Economic Development: Following good governance, economic development should be pursued through participation from government, semi-government, and private entrepreneurship.
  • Establishing Good Governance: Instituting good governance in the state necessitates a transparent government, a fair judiciary system, adherence to the rule of law, and ensuring basic amenities like hospitals, schools, and police stations.
  • Political sincerity and equitable fund distribution for both valley and hill development are crucial.
  • Community Engagement: Enhancing connectivity and interaction among Manipur's diverse communities and mainland India is vital for fostering national integration.
  • Utilizing Non-Governmental Organizations (NGOs), women's associations and cultural programs can play a significant role in rebuilding confidence among the valley and hill populations.

RBI Increases Risk Weights on Unsecured Loans (Business Standard)

  • 29 Nov 2023

Why is it in the News?

Context:

  • The Reserve Bank of India (RBI) recently issued regulatory measures to banks and NBFCs to increase risk weights associated with consumer credit and bank credit by an additional 25 percentage points.
  • Currently, at 100% risk weight, loans to consumers will see an increase to 125%, excluding loans for housing, education, vehicles, and against gold.
  • This would be applicable to unsecured personal loans, credit cards, and lending to NBFCs.
  • The directions are expected to result in higher capital requirements for lenders and thereby, an increase in lending rates for consumers.

What is ‘Risk Weights'?

  • Risk weight is capital required to be set aside, stipulated by the Reserve Bank of India for Banks, or National Housing Bank for housing finance companies, that has to be made by banks for giving the loan.
  • In other words, it is the amount (depicted as a percentage of loan disbursed) that institutions need to set aside for assets.
  • The risk weight is a function of the risk perception the apex bank has on loans for different sectors.
  • It is applicable to all categories of retail (personal, home, car, and education loans) as well as corporate lending.
  • The one that often impacts borrowers directly, and the most, is the risk weight on home loans.
  • It is an essential tool for banks to manage this risk.

Why do risk weights matter?

  • Risk weights are pivotal in banking regulation, as they dictate the capital set aside for different loan types, reflecting their risk profiles.
  • Unsecured loans, perceived as riskier, have higher weights, thus requiring more capital.
  • Home loans, for instance, attract a risk weight of 35-50%, depending on the size of the loan.
  • In comparison, personal loans will now have a risk weight of 125%.

Why were the Changes by RBI Deemed Necessary?

  • Governor Shaktikanta Das had flagged concerns about the “high growth” in “certain components of consumer credit.” while presenting the monetary policy statement in October this year.
  • He advised banks and NBFCs to “strengthen their internal surveillance mechanisms, address the build-up of risks, if any, and institute suitable safeguards, in their own interest.”
  • The governor said these were being closely monitored by the apex banking regulator for “any signs of incipient stress.”
  • Rating agency Moody’s also put forth that higher risk weights are intended to “dampen lenders’ consumer loan growth appetite.”
  • The unsecured segment, it adds, has grown rapidly in the past few years, exposing financial institutions to a potential spike in credit costs in the event of a sudden economic or interest rate shock.
  • RBI’s latest figures stipulate that unsecured personal loans have increased approximately 23% on a year-over-year basis, as of September 22 this year.
  • Outstanding loans from credit cards increased by about 30% during the same period.
  • Major concerns emerge for loans below Rs 50,000 – these carry the utmost default risk.
  • Delinquencies in this segment stood at 5.4% as of June this year.
  • Ratings agency S&P in their assessment held that borrowers in this segment are often highly leveraged and may have other lending products.
  • According to Moody’s, several NBFCs that until now focused on secured lending categories (such as infrastructure, real estate, and vehicle loans) have pivoted to riskier segments.

What are the main concerns?

  • The primary concerns are about how these changes might affect the amount of money banks have and how well they can make a profit.
  • Having enough money, called capital adequacy, is crucial for banks.
  • It helps them handle unexpected problems or risks in their business without losing too much money.
  • A recent report from S&P, which is a group that studies these things, says that if banks are more careful and focus on managing risks, it could make their loans safer.
  • However, it predicts that a measure called Tier-1 capital adequacy, which is like the best kind of money banks have, might go down a bit—about 60 basis points.
  • This is important because Tier-1 capital helps banks deal with losses right away.
  • S&P thinks that this might make banks that don't have a lot of this kind of money think about getting more.
  • Also, it noticed that government-owned banks generally have less of this important money than big private banks.
  • But, the report says that finance companies might face the biggest impact because they could end up borrowing more from banks, and it might affect how much good money they have.

How It will affect Consumers?

  • As the risk weightage goes up, banks may become more careful about giving loans to consumers, especially those seen as having a higher risk.
  • This could make it harder for some people to get credit cards or personal loans.
  • Even those who still qualify for credit might face stricter terms and conditions.
  • Experts suggest that by increasing the risk weightage, the RBI is trying to handle the increasing number of people not repaying their loans and the risks connected to unsecured loans.
  • Lenders will now have to consider the higher credit risk in this type of loan, which could make lending more expensive.
  • As a result, borrowers taking out these loans may face higher costs.

Way Forward

Banks and NBFCs may need to review their approaches to risk and lending specifically for unsecured loans. This could involve placing greater emphasis on evaluating creditworthiness and exploring alternative strategies to effectively handle risk while still providing loans. Financial institutions might also consider diversifying their loan portfolios by placing more emphasis on secured lending or exploring other creditworthy segments. This approach aims to balance the effects of the heightened risk-weighting associated with unsecured loans.

What is the Capital Adequacy Ratio (CAR)?

  • The Capital Adequacy Ratio (CAR) is a financial metric used to evaluate a bank's stability and risk management.
  • Calculated as a percentage, it compares a bank's capital—comprising Tier-1 and Tier-2 capital—to its risk-weighted assets.
  • Tier-1 capital includes core elements like common equity
  • Tier-2 capital consists of supplementary items.
  • Regulatory authorities, such as the RBI, establish minimum CAR requirements to ensure banks can absorb potential losses.
  • A higher CAR reflects greater financial resilience, emphasizing a bank's ability to navigate economic challenges and adhere to regulatory standards.

Rat-Hole Mining in Uttarkashi Tunnel Rescue (Indian Express)

  • 28 Nov 2023

Why is it in the News?

Experts in Uttarakhand have resorted to ‘rat-hole’ mining to help rescue 41 workers trapped inside the collapsed Silkyara tunnel.

Context:

  • Rat hole mining, a controversial and outlaw mining practice is back in the spotlight nearly 9 years after it was banned by the National Green Tribunal (NGT) over severe environmental impacts and unsafe labour conditions.
  • The rat hole mining technique is being used to extract the 41 construction workers trapped inside a collapsed Uttarakhand tunnel after modern machinery failed to execute the rescue operation.
  • The attempt to free 41 trapped workers in the collapsed Silkyara-Barkot tunnel encountered a significant setback as the auger joint of the debris-drilling machine broke.

What is Rat-hole Mining?

  • Rat hole mining is a method of extracting coal from narrow, horizontal seams, prevalent in Meghalaya.
  • The term “rat hole” refers to the narrow pits dug into the ground, typically just large enough for one person to descend and extract coal.
  • Once the pits are dug, miners descend using ropes or bamboo ladders to reach the coal seams.
  • The coal is then manually extracted using primitive tools such as pickaxes, shovels, and baskets.
  • The rat-hole mining is broadly of two types.
  • The first type is a side-cutting procedure, in the side-cutting procedure, narrow tunnels are dug on the hill slopes and workers go inside until they find the coal seam.
  • The coal seam in the hills of Meghalaya is very thin, less than 2 m in most cases.
  • In the other type of rat-hole mining, called box-cutting, a rectangular opening is made, varying from 10 to 100 sqm, and through that a vertical pit is dug, 100 to 400 feet deep.
  • Once the coal seam is found, rat-hole-sized tunnels are dug horizontally through which workers can extract the coal.

Environmental and Safety Concerns Associated with Rat-hole mining:

  • Rat hole mining poses significant safety and environmental hazards.
  • The mines are typically unregulated, lacking safety measures such as proper ventilation, structural support, or safety gear for the workers.
  • Additionally, the mining process can cause land degradation, deforestation, and water pollution.
  • This method of mining has faced severe criticism due to its hazardous working conditions, environmental damage, and numerous accidents leading to injuries and fatalities.
  • Despite attempts by authorities to regulate or ban such practices, they often persist due to economic factors and the absence of viable alternative livelihoods for the local population.

When and Why was Rat-hole Mining Banned?

  • This rat-mining method has faced severe criticism due to its hazardous working conditions, environmental damage, and numerous accidents leading to injuries and fatalities.
  • Experts have opined that the mines are typically unregulated, lacking safety measures such as proper ventilation, structural support, or safety gear for the workers, thereby creating a rather harmful environment for the rat-miners.
  • The National Green Tribunal (NGT) banned the practice in 2014 and retained the ban in 2015.
  • The NGT observed, “It is also informed that there is umpteen number of cases where by virtue of rat-hole mining, during the rainy season, water flooded into the mining areas resulting in the death of many individuals including employees/workers."

How Rat-hole Mining has Helped in Uttarakhand Tunnel Rescue Operation?

  • The state-of-the-art American auger machine drilled roughly 47-48 meters of a horizontal tunnel.
  • After that, it’s driller tool broke inside the drilled passage and authorities said that the damage was beyond repair.
  • The rescue teams then resorted to manual drilling – a safer but time-consuming option. However, they brought in a team of rat hole mining experts who completed the remaining task in less than two days.
  • The rat hole miners went inside the steel pipe being pushed inside the rubble through which trapped workers were pulled out and drilled a horizontal passage.
  • The process was somewhat similar to the digging of a narrow tunnel for coal mining.

What are the Other Methods Used to Rescue the Trapped Workers in the Silkyara Tunnel?

  • Vertical drilling: Vertical drilling is done through a boring machine, digging straight down from the ground using electrical tools and equipment.
  • In the case of the Uttarakhand tunnel collapse, a vertical drill had been boring into the ground and an 800-mm pipe had been inserted to bring out the trapped workers.
  • Auger mining (horizontal drilling): A horizontal auger machine or a directional drill is a specialised tool designed to drill horizontal bores or create underground tunnels without disturbing the ground.
  • These machines are used to lay down water and gas pipes and to dig a tunnel.
  • However, the auger machine in the case of the Uttarakhand tunnel collapse failed to free the trapped workers as it hit metal obstructions and eventually broke down, beyond repair.

What is a Horizontal Auger Machine?

  • A horizontal auger machine, also known as a horizontal boring machine or directional drill, is a specialized tool designed for creating horizontal bores or underground tunnels without causing surface disruption.
  • It typically features a rotating helical screw blade, referred to as an auger, attached to a central shaft or drill, facilitating penetration through rotation.
  • Applications: Widely utilized in construction, utility installations (such as laying pipes or cables), and various infrastructure projects.
  • Working Mechanism: Positioned at the starting point of the bore, often on the surface, the machine comprises a drill head with an auger or a drill string.
  • The rotating auger at the front of the machine cuts through soil, rock, or other underground materials.
  • The rotation is powered by hydraulic or mechanical systems.
  • As the auger progresses, it removes the material from the tunnel.
  • The removal process is usually facilitated by a drilling fluid or mud pumped through the drill string.
  • The drilling fluid serves multiple purposes, including lubricating the drilling process, cooling the cutting head, and transporting excavated material back to the surface.

OECD Report About Climate Finance (The Hindu)

  • 22 Nov 2023

Why is it in the News?

A new report, published by the Organisation for Economic Cooperation and Development (OECD), showed that economically developed countries fell short of their promise to jointly mobilise $100 billion a year, towards the climate mitigation and adaptation needs of developing countries, in 2021 – one year past the 2020 deadline.

What is the Organisation for Economic Cooperation and Development (OECD)?

  • The Organization for Economic Cooperation and Development (OECD) is an association of 38 nations in Europe, the Americas, and the Pacific.
  • Its members and key partners represent 80% of world trade and investment.
  • The goal of the OECD is to promote the economic welfare of its members.
  • It also coordinates its efforts to aid developing countries outside of its membership.
  • As a result, its programs help promote reform in more than 100 countries worldwide.
  • The OECD's main headquarters is located in Paris (France)
  • The OECD collects, analyzes, and reports on economic growth data for its members.
  • This gives them the knowledge to further their prosperity and fight poverty. It also balances the impact of economic growth on the environment.
  • Committees within the OECD analyze the data and make policy recommendations.
  • It's up to each member country to decide how to use OECD recommendations.
  • The OECD publishes mainly two reports:
  • International Migration Outlook
  • Programme for International Student Assessment

Key Findings of the OECD Report Ahead of COP 28:

  • The OECD has released a report titled 'Climate Finance Provided and Mobilised by Developed Countries in 2013-2021.'
  • This comprehensive report highlights the collective patterns in annual climate finance contributed and mobilized by developed nations for developing countries during the period from 2013 to 2021.
  • In-depth analyses are presented, offering insights into climate themes, sectors, financial instruments, and regional distributions specifically for the years 2016 to 2021.
  • Additionally, the report offers essential recommendations for international providers to enhance financial support for adaptation efforts and to more efficiently engage private finance in climate action.

Major Takeaways from the Report Published by OECD:

  • Failure to Meet Commitments: The report revealed that the economically developed countries had failed to meet their commitment to together raise $100 billion annually by 2021, one year after the 2020 deadline, to help developing nations with their climate adaptation and mitigation needs.
  • According to the report, affluent nations raised $89.6 billion in 2021, however, the amount of money allocated for adaptation decreased by 14% from 2020 to 2021.
  • The ability of developing nations to meet their needs for climate adaptation and mitigation is lowered when sufficient climate funding is not raised.
  • It also weakens confidence in the industrialized world's sincerity in addressing the climate catastrophe among the world's poorer nations.
  • Loan-Centric Climate Finance: According to the OECD study, $49.6 billion in loans were given out of the $73.1 billion that the public sector raised in 2021 through bilateral and multilateral channels.
  • It illuminates the degree to which wealthy nations must rely on loans at market rates in order to meet their climate finance commitments.
  • For instance, a research team's evaluation of the worldwide flows of climate finance from 2011 to 2020 revealed that 61% of the funding came from loans.

Issue With 'Additionality'

  • Another issue in the OECD report pertains to additionality.
  • The UNFCCC states that developed countries “shall provide new and additional financial resources to meet the agreed full costs incurred by developing country Parties in complying with their obligations under the convention”.
  • This means developed countries can’t cut overseas development assistance (ODA) in order to finance climate needs because that would effectively rob Peter to pay Paul.
  • In the real world, it could cut off support for healthcare in order to reallocate that money to, say, install solar panels.
  • The “new and additional finance” also means developed countries can’t double-count.
  • For example, a renewable energy project could contribute to both emission reductions and overall development in a region.
  • As per the U.N. Convention, however, donor countries can’t categorise such funding as both ODA and climate finance because it wouldn’t fulfill the “new and additional” criterion.
  • A few years ago, European Union officials admitted to double-counting development aid as climate finance.

What Counts as Climate Finance?

  • At present, there is no commonly agreed definition of ‘climate finance’ because developed countries have endeavored repeatedly to keep it vague.
  • For example, at the COP 27 in Egypt last year, Australia and the U.K. even sought to end discussions to define ‘climate finance’.
  • In the run-up to the COP 26 in Glasgow, the U.S. led an effort to block debate on a common definition, alongside Switzerland, Sweden, and some other developed countries.
  • The lack of definitional clarity has reportedly led to strange situations like funding for chocolate and gelato stores in Asia and a coastal hotel expansion in Haiti being tagged as climate finance.
  • The ambiguity works in favour of richer countries because it leaves the door open to arbitrarily classify any funding, including ODA and high-cost loans, as climate finance and escape the scrutiny that a clearer definition might bring.
  • So while developed countries can claim they have provided billions in climate finance, the actual flows need to be checked for whether they actually went into climate mitigation and adaptation in developing countries or something else.

How much do developing countries need?

  • According to the OECD assessment, climate investments for developing nations are expected to reach approximately $1 trillion year by 2025 and $2.4 trillion annually between 2026 and 2030.
  • In contrast, the $100 billion objective is insufficient and even more so given that it has not yet been reached.

What role can the private sector play?

  • To meet the scale of the challenge, people like the U.S. climate envoy John Kerry and World Bank president Ajay Banga have routinely emphasised the role the private sector could play.
  • But the OECD report shows that private financing for climate action has stagnated for a decade.
  • The problem is particularly worse for climate adaptation because investment in this sector can’t generate the sort of high returns that private investors seek.
  • There also haven’t yet been signs that the private sector is interested in massively scaling up its climate investments.

What is Climate Change?

  • Climate change is the result of long-term shifts in temperatures and weather patterns.
  • Natural variations, like those influenced by changes in the solar cycle, can contribute to these shifts.
  • However, since the 1800s, human activities, particularly the burning of fossil fuels such as coal, oil, and gas, have emerged as the primary driver of climate change.
  • The combustion of fossil fuels produces greenhouse gas emissions, creating a metaphorical blanket around the Earth.
  • This 'blanket' traps the sun's heat, leading to an increase in temperatures.
  • The rising temperatures, a consequence of climate change, accelerate the melting of ice.
  • This, in turn, contributes to elevated sea levels, resulting in flooding and erosion.

Uttarakhand Tunnel Collapse (Indian Express)

  • 21 Nov 2023

Why is it in the News?

On November 12, the under-construction Silkyara-Barkot tunnel on the Yamunotri National Highway in Uttarakhand’s Uttarkashi district collapsed.

News Summary:

  • On November 12, 2023, the Silkyara Bend - Barkot tunnel, which was under construction, collapsed in the Uttarkashi district of Uttarakhand.
  • The collapse trapped at least 40 workers inside the tunnel.
  • The National Disaster Response Force (NDRF), the State Disaster Response Force (SDRF), and the police promptly initiated and led the rescue operations.
  • The tunnel is a part of the Char Dham all-weather road project which commenced in 2016.

What is the Char Dham All Weather Road Project?

  • It is a central govt. Project to improve the existing condition of Highways in the state of Uttarakhand.
  • In this project, the govt. will upgrade and develop the road which connects all four 'Dhams' i.e.
  • Gangotri, Yamunotri, Kedarnath, and Badrinath  in the upper Himalayas.
  • The 12,000-crore dream project will turn 1100 km of damaged highways of Uttarakhand into all-season roads.

About the Silkyara Tunnel which Collapsed:

  • The tunnel, designed to connect Silkyara to Dandal gaon in Uttarkashi district, spans a total length of 4.5 km.
  • As part of the Char Dham all-weather road project, this double-lane tunnel is recognized as one of the longest and aims to reduce the journey from Uttarkashi to Yamunotri Dham by 26 kilometers.
  • Construction progress includes 2.3 km completed from the Silkyara side and 1.6 km from the Barkot end. Approximately, a 400m stretch of the tunnel is yet to be constructed.
  • Regarding the incident:
  • The Silkyara Tunnel, located on Uttarkashi-Yamnotri Road, became the site of the accident where workers are currently trapped. The collapse occurred approximately 270m from the entrance on the Silkyara side.

What are the Tunnel Excavation Techniques Utilised in India?

In India, two primary methods of Tunnel Excavation are employed: the drill and blast method (DBM) and tunnel-boring machines (TBMs).

  • Tunnel-boring machines (TBMs): TBMs bore into the rock from the front using a rotating head.
  • The excavated tunnel section is supported by installing precast concrete segments.
  • TBMs are preferred when the rock cover is up to 400 meters in height.
  • Notably, the TBM method was applied in constructing tunnels for the Delhi Metro.
  • Drill and Blast Method (DBM): DBM involves drilling holes into the rock and loading them with explosives.
  • Upon detonation, the rock breaks apart.
  • DBM is the chosen method for mountains ranging from 1000 to 1200 meters in height.
  • This method is commonly used for tunnel construction in the Himalayas, Jammu & Kashmir, and Uttarakhand.

What could be the Possible Causes of the Tunnel Collapse in Uttarakhand?

  • Presence of Fractured or Fragile Rock: Fractured rocks with numerous joints are weaker, making them susceptible to collapse under significant overhead weight, possibly leading to tunnel collapse.
  • Water Seepage: Over time, water seepage can erode loose rock particles, creating a void on the top of the tunnel, which might contribute to the tunnel caving in.
  • Landslide-Prone Young Himalayan Rock System: The proximity of the incident site to the Main Central Thrust (MCT)/Barkot thrust of the Himalayas raises the possibility that seismic waves could trigger a landslide in the tunnel.
  • Improper Study of Shear Zone and Lack of Protection Measures: Experts suggest that the lack of adequate geological mapping studies of the shear zone and failure to implement protective measures, such as steel ribs, rock bolts, or shotcrete, may have contributed to the collapse due to insufficient monitoring.

In addition to these, expert-provided reasons, concerns have been raised about the Himalayas' fragility in supporting massive infrastructure projects like the Char-Dham project and large-scale hydroelectric power projects.

What Measures Have Been Taken to Ensure Safe Tunnel Construction in India?

  • Establishment of Tunnel Zone Department in the MoRTH: A dedicated Tunnel Zone department has been set up in the Ministry of Road Transport and Highways (MoRTH).
  • Its primary role is to enhance tunneling capabilities and formulate guidelines for the design and construction of tunnels.
  • Formation of Expert Committee on Tunnel: An Expert Committee on Tunnel has been constituted to address technical challenges arising during the implementation of tunnel projects across the country.
  • Indian Standard Code for Tunnel Construction: The issuance of Indian Standard Codes, specifically IS 15026 (2002) and IS 4756 (1978), provides comprehensive guidelines for tunnel design, lighting, and ventilation.
  • Implementation of IRC Codes for Tunnels: The implementation of the IRC code for tunnels in 2019 ensures that road tunnels adhere to international standards.
  • Adherence to Standard Codes in Tunnel Construction: Ensuring compliance with various standard codes, including Integrated Tunnel Control Systems (ITCS), The Work in Compressed Air Regulations 1996, Emergency Evacuation and Rescue Plans for tunnels, and guidelines from the Research Designs and Standards Organisation (RDSO).
  • Incorporation of International Tunnelling and Underground Space Association Safety Practices: Following safety practices outlined by the International Tunnelling and Underground Space Association, emphasizing specific escape routes marked by signs and the development of contingency plans for emergency situations during tunnel construction.

What Steps Should Be Taken for Ensuring Safe Tunnel Construction?

  • Enhanced Geotechnical Studies: In India, the simultaneous design and construction of tunnel projects should be accompanied by more detailed geotechnical studies, including petrographic analysis.
  • This information is crucial for incorporating precise design and construction elements into the tunnel project.
  • Ongoing Monitoring by Specialist Geologists: Independent specialist geologists should regularly visit construction sites to conduct thorough inspections.
  • This practice ensures the early identification of potential failures and helps determine the stand-up time of the rock. (Rock stand-up time refers to the duration for which a rock can remain stable without support.)
  • Testing Adequacy of Tunnel Supports: All tunnel supports, such as shotcrete, rock bolts, steel ribs, and tunnel pipe umbrellas, need rigorous testing to ensure their adequacy in preventing tunnel collapse.
  • This proactive approach helps in maintaining the stability and integrity of the tunnel structure.
  • Emergency Evacuation Arrangements: Robust arrangements for safe evacuation in the event of a collapse are imperative.
  • Deployment of National Disaster Response Force (NDRF) personnel, along with the provision of proper safety equipment, is essential. Construction companies bidding for projects should submit comprehensive safety plans as part of their project proposals.

High Court Quashes Haryana Govt's 75% Quota in Private Sector Jobs (Indian Express)

  • 20 Nov 2023

Why is it in the News?

The Punjab and Haryana High Court on Nov 17 quashed a law passed by the Haryana government in 2020 that provided 75% reservation in private jobs to residents of the state.

Context:

  • The Punjab and Haryana high court on Friday struck down a Haryana law that reserved 75% private sector jobs, paying up to ?30,000 a month, for local candidates.
  • The court found it unconstitutional and stated that the 2021 law violated fundamental rights as per the Constitution, emphasizing that individual rights should align with the Constitution's text and spirit, not popular or majoritarian notions.

Key Provisions of Haryana State Employment of Local Candidates Act 2020:

  • The Act is applicable to all private companies, societies, partnership firms, trusts, any person employing ten or more persons in Haryana, or any other entity as may be notified by the Government.
  • The Act requires private sector employers to reserve 75% of job posts that offer a salary of less than INR 30,000 for individuals who are domiciled in Haryana.
  • The Government of Haryana has also made the residency (domicile) requirement to 5 years for a person to obtain a residency certificate.
  • The Act enables the Haryana Government to focus on securing employment opportunities for domiciled individuals.
  • However, domiciled linked reservations are not a new concept since other States have also introduced similar laws.
  • For instance, the Government of Andhra Pradesh notified the Andhra Pradesh Employment of Local Candidates in the Industries / Factories Act, 2019 which provided for reservation of 75% of posts in existing and upcoming factories, industries, joint ventures, and public-private partnership projects for local candidates.
  • However, central or state governments or any organisation owned by them were kept outside the ambit of this Act.
  • Employers can seek an exemption if enough local candidates with required skills are unavailable; the Designated Officer decides based on an inquiry.
  • The law was made applicable for 10 years but was stayed by the high court last year.

Haryana was also one of several states that have enacted laws in recent years to provide reservations for local residents in the private sector. These include Maharashtra (up to 80% quota), Karnataka (75%), Andhra Pradesh (75%) and Madhya Pradesh (70%). However the validity of most of these laws has been challenged before the Supreme Court and high courts.

Who challenged the law and on what grounds?

  • The Faridabad Industries Association and other Haryana-based associations went to court, contending that Haryana wanted to create reservations in the private sector by introducing a policy of “sons of the soil”, which was an infringement of the constitutional rights of employers.
  • The petitioners argued that private sector jobs are purely based on skills and an analytical bent of mind, and employees have a fundamental right to work in any part of India.
  • Therefore, they argued, “The act of the respondent (government) forcing the employers to employ local candidates in the private sector vide this impugned Act is the violation of the federal structure framed by the Constitution of India, whereby the government cannot act contrary to the public interest and cannot benefit one class”.
  • The Haryana government argued that it had the power to create such reservations under Article 16(4) of the Constitution, which says that the right to equality in public employment does not prevent the State from “making any provision for the reservation of appointments or posts in favour of any backward class of citizens which, in the opinion of the State, is not adequately represented in the services under the State”.

What was the ruling of the High Court?

  • The High Court ruled that the law violates Part III of the Constitution (Fundamental Rights) and declared it ineffective "from the date it came into force."
  • It expressed concerns that certain provisions, such as the obligation for employers to submit quarterly reports and the authorization for officers to request documents or verification, resembled an "Inspector Raj" situation.
  • The court concluded that the state's actions constituted an "absolute control over a private employer," leading to violations of an individual's right to engage in occupation, trade, or business under Article 19(1)(g) of the Constitution.
  • The judges held that notions about individual rights have to be in accordance with the text and spirit of the Constitution and not popular or majoritarian notions.
  • The court also said that:
  • “The state cannot direct the private employers to do what has been forbidden to do under the Constitution of India.
  • It cannot do such discrimination against the individuals on account of the fact that they do not belong to a certain state and have a negative discrimination against other citizens of the country”.

The Structure and Development of Reservations in Public Employment in India:

  • Reservation in public employment was initially limited to Scheduled Castes and Scheduled Tribes.
  • Later extended to include Other Backward Classes (OBCs) based on Mandal Commission recommendations (1980).
  • Mandal Commission's Recommendations:
  • The Mandal Commission proposed a 27% reservation for OBCs in central services and public sector undertakings.
  • This was an addition to the existing reservation for Scheduled Castes and Scheduled Tribes.
  • Constitutional Perspective: Reservation is not a fundamental right.
  • While the constitution emphasizes non-discrimination in public employment, the state has the authority to promote specific societal sections through reservation in education or employment.
  • Basis for Reservation: Reservation can be based on factors such as domicile (residence) or backwardness.
  • Parliamentary Authority: Parliament can enact laws regarding employment to a state office, specifying requirements like residence within that state (Article 16(3)).
  • State's Authority: The State has the power to advance socially and educationally backward classes or Scheduled Castes and Scheduled Tribes (Article 15(4)).
  • Provisions can be made to reserve posts for backward classes not adequately represented in the State services (Article 16(4)).

Some Important Judgements related to Reservation:

  • Indra Sawhney v. Union of India Case (1992):
  • The court affirmed the constitutionality of 27% reservation but set a 50% cap on public employment reservation.
  • The court recommended excluding advanced sections within OBCs (creamy layer) from reservation benefits.
  • M.Nagaraj v. Union Of India Case (2006 ):
  • The Supreme Court validated the constitutional legitimacy of the 77th Amendment, allowing the state to reserve posts for underrepresented backward classes.
  • It emphasized excluding the creamy layer from the reservation, extending this principle to Scheduled Castes and Tribes.
  • Dr. Jaishri Laxmanrao Patil vs Chief Minister Case (2021):
  • The Supreme Court reaffirmed the Indra Sawhney decision and invalidated Section 4(1)(a) and Section 4(1)(b) of the Act.
  • These sections provided 12% reservation for Marathas in educational institutions and 13% reservation in public employment.
  • This judicial decision sent a strong message, highlighting instances where certain state governments exceeded the prescribed limits on reservations without any justifiable exceptional circumstances.
  • Janhit Abhiyan (EWS) Case (2022):
  • The Supreme Court upheld the validity of the 103rd Constitutional Amendment, providing 10% reservation for Economically Weaker Sections (EWS).
  • The court clarified that the EWS quota doesn't breach the 50% reservation cap, as it falls within the non-reserved category.

Community Rights & Forest Conservation (The Hindu)

  • 14 Nov 2023

Why is it in the News?

The Forest (Conservation) Amendment Act, 2023, marks a noteworthy evolution in the environmental legal landscape of India, amending the pivotal Forest (Conservation) Act of 1980. Despite its substantial implications for forest conservation, the recent amendment has garnered limited attention and scant discussion concerning its potential impact on both forests and their inhabitants.

What is a community forest resource?

  • The community forest resource area is the common forest land that has been traditionally protected and conserved for sustainable use by a particular community.
  • The community uses it to access resources available within the traditional and customary boundary of the village; and for seasonal use of landscape in case of pastoralist communities.
  • Each CFR area has a customary boundary with identifiable landmarks recognised by the community and its neighboring villages.
  • It may include a forest of any category – revenue forest, classified & unclassified forest, deemed forest, DLC land, reserve forest, protected forest, sanctuary and national parks, etc.

What are Community Forest Resource rights?

  • The Community Forest Resource Rights are mentioned under Section 3(1)(i) of the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act.
  • It is commonly referred to as the Forest Rights Act or the FRA.
  • It provides for recognition of the right to “protect, regenerate or conserve or manage” the community forest resource.
  • These rights allow the community to formulate rules for forest use by itself and others and thereby discharge its responsibilities under Section 5 of the FRA.
  • CFR rights, along with Community Rights (CRs) under Sections 3(1)(b) and 3(1)(c), which include nistar rights and rights over non-timber forest products, ensure sustainable livelihoods of the community.
  • (Nistar means the concession granted to agriculturists and Villagers for removal from forest coupes on payment at stipulated rates for specified forest produce for bonafide domestic use, but not for barter sale.)
  • These rights give the authority to the Gram Sabha to adopt local traditional practices of forest conservation and management within the community forest resource boundary.

Why is the recognition of CFR rights important?

  • Aimed at undoing the “historic injustice” meted out to forest-dependent communities due to curtailment of their customary rights over forests, the Forest Rights Act or the FRA came into force in 2008.
  • It is important as it recognises the community’s right to use, manage and conserve forest resources, and to legally hold forest land that these communities have used for cultivation and residence.
  • It also underlines the integral role that forest dwellers play in the sustainability of forests and the conservation of biodiversity.
  • It is of greater significance inside protected forests like national parks, sanctuaries and tiger reserves as traditional dwellers then become a part of the management of the protected forests using their traditional wisdom.
  • But while CFR rights are an important empowerment tool, getting a consensus amongst various villages about their traditional boundaries often proves a challenge.

Key Provisions of the Forest (Conservation) Amendment Bill, 2023:

  • Land under the Act: The amended law exclusively applies to areas classified under the Forest Act, 1927, and those designated as such on or after October 25, 1980.
  • Notably, it excludes forests converted for non-forest use after December 12, 1996.
  • The amendments streamline the Act's application to recorded forest lands, private forest lands, plantations, etc.
  • Exempted Categories of Land: To encourage afforestation and plantation outside forests, the Bill proposes exemptions, such as providing 0.10 ha of forest land for connectivity along roads and railways, allocating up to 10 ha for security-related infrastructure, and allowing up to 5 ha in Left Wing Extremism Affected Districts for public utility projects.
  • Exemptions also cover strategic projects related to national security within 100 km of international borders.
  • Leasing of Forest Land: The Act mandates prior approval from the central government for the assignment of forest land to any entity, whether government-controlled or not.
  • This condition now applies to all entities, with approval subject to terms and conditions specified by the central government.
  • Permitted Activities in Forest Land: Restrictions on de-reservation or non-forest use of forest land may be lifted with prior approval from the central government.
  • The Act outlines specific activities exempt from non-forest purposes, including those related to the conservation, management, and development of forests and wildlife.
  • Expansion of Delegated Legislation Power: The amendment broadens the Central Government's power for delegated legislation.
  • In addition to making Rules, it now includes the authority to issue "directions" to central government authorities, state governments, union territories, or any recognized organization, entity, or body, ensuring effective implementation of the Act's provisions.

Key Concerns with the Amendment:

  • Redefining Forests: The amendment introduces a contradiction to the established definition of forests by the Supreme Court in 1996.
  • This change, making any tree patches recorded as forest in government records deemed as forests, jeopardizes legal safeguards for approximately one-fifth to one-fourth of India's forests, as reported by the Public Action Committee (PAC) in Punjab.
  • Infrastructure Encroachment: The exemption of land near border areas for national security projects raises concerns about adverse effects on forest cover and wildlife in northeastern states.
  • Broad exemptions for projects like zoos, eco-tourism facilities, and reconnaissance surveys may also negatively impact forest land and wildlife.
  • Neglect of Tribal Rights: The amendment removes the requirement for prior consent from tribal grama sabhas for alterations to forests for non-forest purposes.
  • Allowing private companies to use forest land for ecotourism could prioritize corporate interests over tribal communities' livelihoods, potentially leading to the erosion of local cultures and traditions due to mass tourism.
  • Top-Down Authority: Concerns have been raised about potential forest exploitation by profit-driven private companies and the consolidation of power in the central government, potentially neglecting the concerns of state governments.
  • This shift in authority could lead to imbalances and adverse consequences for forest management.
  • Human-Animal Conflicts: Allowing infrastructure development on forest land without addressing the growing issue of human-animal conflicts in tribal hamlets poses threats to both livelihoods and wildlife.
  • The amendment lacks provisions to mitigate or prevent such conflicts, potentially exacerbating the situation.

The Path Ahead:

  • Empowerment of Local Communities: Empower local communities, especially tribal groups, by involving them in decision-making processes, recognizing traditional knowledge, and ensuring equitable benefits from forest resources.
  • Reinforce legal safeguards to protect indigenous communities' rights and heritage.
  • Environmental Impact Assessment (EIA): Strengthen the Environmental Impact Assessment (EIA) process to comprehensively assess proposed projects' environmental impact.
  • This ensures sustainable development while minimizing ecological damage and informs decision-makers.
  • Stakeholder Consultation: Conduct extensive consultations with environmental experts, tribal communities, local stakeholders, and NGOs to address concerns and integrate diverse perspectives.
  • Prioritize inclusiveness, local participation, and transparency in decision-making processes.
  • Capacity Building: Invest in capacity building for relevant authorities to ensure effective implementation of the Act, adherence to guidelines, and competent decision-making.
  • This enhances the capability of authorities to manage and regulate the Act efficiently.
  • Transparency in Decision-Making: Ensure transparency in decision-making regarding forest land use, exemptions, and infrastructure projects to foster trust among stakeholders.
  • Transparent processes enhance accountability and public trust.
  • Periodic Review Mechanism: Establish a robust periodic review mechanism to evaluate the Act's impact on forests, biodiversity, and local communities.
  • Adjustments should be made based on findings, considering feedback and evolving circumstances.
  • Conflict Resolution Mechanisms: Establish efficient conflict resolution mechanisms to address disputes arising from the Act.
  • Provide a fair platform for all stakeholders to voice concerns and seek resolution, promoting constructive dialogue.
  • Scientific Research and Monitoring: Promote scientific research to monitor the Act's impact on forest ecosystems, biodiversity, and climate goals.
  • Use data-driven insights for informed policy adjustments and develop adaptive management strategies for unforeseen challenges.

These comprehensive steps collectively form a holistic approach to navigating the complexities of forest management, ensuring sustainability, equity, and the preservation of environmental integrity.

What are the Pollutants in Our Air, and How They Impact Health (Indian Express)

  • 08 Nov 2023

Why is it in the News?

Rising pollution levels in north India have led to focus returning on the Air Quality Index (AQI) score, a measure of air pollution.

Context:

  • The escalating pollution in northern India has once again drawn attention to the Air Quality Index (AQI) score, which gauges air pollution levels.
  • On Monday, Delhi, for instance, registered an AQI score exceeding 400.
  • This categorizes the air quality as 'severe,' with any reading above 100 indicating at least a moderate level of pollution on the index.

What is the Air Quality Index (AQI)?

  • AQI is a number, which is a measure of air quality.
  • The higher the AQI, the worse the air.
  • The color-coded AQI index was launched in India in 2014, and it helps the public and the government understand the condition of the air and what subsequent measures are to be taken to combat the situation, based on its severity.
  • According to the Central Pollution Control Board, part of the Ministry of Environment, Forests, and Climate Change, the AQI transforms complex air quality data of various pollutants into a single number (index value), nomenclature, and color.
  • The pollutants measured include PM 10, PM 2.5, Nitrogen Dioxide, Ozone, Carbon, etc.
  • There are six categories of AQI, namely ‘Good’ (0-50), ‘Satisfactory’ (51-100), ‘Moderately polluted’ (101-200), ‘Poor’ (201-300), ‘Very Poor’ (301-400), and ‘Severe’ (401-500).

How Pollutants Impact Our Health?

PM 10 and PM 2.5

  • These are extremely fine particulate matter (PM) particles, with the digits accompanying them referring to their diameter.
  • So, PM 10 and PM 2.5 are smaller than 10 and 2.5 microns in their diameter, respectively.
  • One micron is about a thousandth of a millimeter and this tiny size has a role to play in how they impact human health.
  • The finer the particles are, the more difficult it gets to protect oneself from them.
  • Due to their size, the PM 2.5 particles can easily bypass the nose and throat and can enter the circulatory system.
  • The particles can also lead to chronic diseases such as asthma, heart attack, bronchitis, and other respiratory problems.
  • Byproducts of emissions from factories, vehicular pollution, construction activities, and road dust, such particles are not dispersed and stay suspended in the air that we breathe.

Nitrogen Dioxide (NO2)

  • Nitrogen dioxide (NO2) gets in the air from the burning of fuel, with sources including emissions from vehicles and power plants.
  • Short-term exposure to high levels of NO2 can aggravate respiratory diseases like asthma, and lead to other problems such as coughing or difficulty in breathing.
  • Long-term exposure may also contribute to the development of asthma and could increase susceptibility to respiratory infections.

Ozone (O3)

  • Ozone is a gas that is present in the upper layers of the atmosphere, protecting human health from the impact of the Sun’s UV rays.
  • However, surface-level ozone is among the most significant air pollutants. It is formed by the reaction of atmospheric pollutants in the presence of sunlight.
  • According to the International Journal of Medical Public Health, with the increase in surface ozone levels, there is a likelihood of an increase in the risk of hospital admissions for Chronic Obstructive Pulmonary Diseases (COPD) and the number of cardiovascular and respiratory deaths.

Sulphur Dioxide (SO2)

  • The largest source of SO2 in the atmosphere is the burning of fossil fuels by power plants and other industrial facilities.
  • Additional sources are industrial processes and natural sources such as volcanoes.
  • As with other gases, SO2 exposure is harmful to the cardiovascular system and can lead to the development of respiratory illnesses.
  • SO2 can also react with other compounds to form particulate matter.
  • At high concentrations, gaseous SOx can harm trees and plants by damaging foliage and decreasing growth.

Ammonia (NH3)

  • A 2017 NASA-funded study said that in India, “A broad increase in fertilizer use coupled with large contributions from livestock waste have resulted in the world’s highest concentrations of atmospheric ammonia.”
  • While gaseous ammonia is a natural part of Earth’s nitrogen cycle, excess ammonia is harmful to plants and reduces air and water quality.
  • In the troposphere –where all weather takes place and where people live – ammonia gas reacts with nitric and sulfuric acids to form nitrate-containing particles.
  • Those particles contribute to aerosol pollution that is damaging to human health.
  • Ammonia gas can also fall back to Earth and enter lakes, streams, and oceans, where it contributes to harmful algal blooms and “dead zones” with dangerously low oxygen levels.

Lead (Pb)

  • Lead is a naturally occurring toxic metal found in the Earth’s crust. But in increased quantities, exposure to it becomes extremely dangerous to health.
  • Important sources of environmental contamination come from mining, smelting, manufacturing and even recycling activities.
  • Young children are particularly vulnerable to lead poisoning because they absorb four to five times as much ingested lead as adults from a given source.
  • Children who survive severe lead poisoning may be left with permanent intellectual disability and behavioral disorders.

Carbon Monoxide (CO)

  • A toxic, colorless, and odorless gas, it is given off when fuel containing carbon, such as wood, coal, and petrol, is burned.
  • If CO levels are high enough, a person may become unconscious and die. Long-term exposure has been linked with an increased risk of heart disease.

Extension of PM Garib Kalyan Ann Yojana (PMGKAY) (Indian Express)

  • 06 Nov 2023

Why is it in the News?

Recently, Prime Minister Narendra Modi said that the Pradhan Mantri Garib Kalyan Anna Yojana, the Centre’s free ration scheme that aids 80 crore poor, will be extended for five more years.

News Summary

  • Prime Minister Narendra Modi, announced the extension of the free foodgrain provision under the National Food Security Act, 2013 for the next five years.
  • The PM Garib Kalyan Ann Yojana (PMGKAY) scheme, which was originally set to end in December 2023, will now continue.
  • This scheme was introduced in 2020 during the COVID-19 pandemic to provide free food grains to beneficiaries under the National Food Security Act, 2013.

What is Pradhan Mantri Garib Kalyan Ann/Anna Yojana (PM-GKAY)?

  • The Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) was launched in April 2020 as a part of the Atmanirbhar Bharat initiative to help the poor people whose livelihoods were shuttered by a countrywide lockdown aimed at containing the spread of the Covid-19.
  • It was a part of Pradhan Mantri Garib Kalyan Package (PMGKP) to help the poor fight the battle against Covid-19.
  • Under this scheme, about 80 crore beneficiaries covered under the National Food Security Act (NFSA) get free 5 kg foodgrains per person per month.
  • This assistance is in addition to the subsidised ration provided under the National Food Security Act (NFSA), allowing families covered under the Public Distribution System (PDS) to access essential food items at a nominal cost ranging from Rs 1 to Rs 3 per kilogram.
  • Objective of PM-GKAY: To feed India's poorest citizens by distributing food grain to all priority households—those with ration cards and those designated by the Antyodaya Anna Yojana scheme—through the Public Distribution System.
  • The Antyodaya Anna Yojana is a centrally sponsored scheme that was introduced in 2000 with the goal of giving millions of the poorest households access to heavily subsidized food.
  • To ensure the availability of protein, 1 kg of pulses were provided to families (as per regional preferences)
  • Implementing Agency: Department of Food and Public Distribution, Ministry of Consumer Affairs, Food and Public Distribution.

Who is eligible for the scheme?

  • Families eligible for PM-GKAY include those under the Antyodaya Anna Yojana (AAY) and Priority Household (PHH) categories.
  • PHH beneficiaries are identified by state governments and Union territory administrations based on their specific criteria.
  • This ensures that households in most need receive the necessary support.
  • AAY families, comprising widows, terminally ill persons, disabled individuals, elderly individuals without means of subsistence or societal support, primitive tribal households, and various vulnerable categories, are also eligible for the scheme.

The merger of PMGKAY and NFSA:

  • In January 2023, the government approved the integration of PM-GKAY benefits with the provisions of the NFSA Act.
  • This integration will streamline the delivery of free food grains.
  • It also ensures that families falling under the Antyodaya Ann Yojana (AAY) and priority households (PHH) categories receive free food grains according to their entitlement under NFSA.
  • For the financial year 2023-24, the central government has allocated around 60 mt of food grain under the NFSA.
  • This includes around 40 mt of rice, 19 mt of wheat, and 1 mt of coarse grains.
  • The central issue price (CIP), the rate at which grains are made available to NFSA beneficiaries, is Rs 3 per kg for rice, Rs 2 per kg for wheat, and Rs 1 per kg for coarse cereals.

Pradhan Mantri Garib Kalyan Package (PMGKP) vs PMGKAY:

  • The Pradhan Mantri Garib Kalyan Package (PMGKP) was introduced in the wake of the Covid-19 pandemic to provide economic relief to the vulnerable sections of society.
  • Launched in March 2020, the scheme included various measures such as free food grains, cash transfers, and insurance coverage for healthcare workers, among others, to support those affected by the pandemic and the subsequent lockdown measures.
  • The insurance scheme under PMGKP covered Rs 50 lakh per health worker fighting Covid-19.
  • This insurance scheme was further extended by 180 days in April 2022.

What is National Food Security Act (NFSA), 2013?

  • The National Food Security Act (NFSA) was notified on 10th September, 2013.
  • The objective of this scheme was to provide for food and nutritional security in the human life cycle approach, by ensuring access to adequate quantities of quality food at affordable prices for people to live a life with dignity.
  • Coverage: 75% of the rural population and up to 50% of the urban population for receive subsidized food grains under the Targeted Public Distribution System (TPDS).
  • Overall, NFSA caters to 67% of the total population.
  • State governments are tasked with identifying Antyodaya Anna Yojana (AAY - poorest of the poor) and priority households (PHH) beneficiaries within the Targeted Public Distribution System (TPDS)-covered population.
  • Provisions: 5 Kg of foodgrains per person per month at Rs. 3/2/1 per Kg for rice/wheat/coarse grains.
  • The existing AAY household will continue to receive 35 Kg of foodgrains per household per month.
  • Meal and maternity benefits of not less than Rs. 6,000 to pregnant women and lactating mothers during pregnancy and six months after childbirth.
  • Meals for children up to 14 years of age.
  • Food security allowance to beneficiaries in case of non-supply of entitled foodgrains or meals.
  • Setting up of grievance redressal mechanisms at the district and state levels.

What are the Challenges and the Issues?

  • Inadequate Coverage: The National Food Security Act relies on data from the last census in 2011, leaving out a growing number of food-insecure individuals who have emerged since then.
  • Financial Burden: Sustaining the program imposes a significant financial burden on the government, necessitating a continuous supply of affordable grains.
  • In 2022, India had to impose restrictions on wheat and rice exports due to unpredictable weather conditions affecting harvests, adding pressure to food prices and unsettling global agricultural markets.
  • Fiscal Deficit Concerns: The extension of the program could potentially jeopardize the government's goal of further reducing the fiscal deficit to 6.4% of the gross domestic product.
  • Impact on Inflation: The program's continuation may also influence inflation rates, particularly in the case of rice and wheat, which contribute around 10% to India's retail inflation.
  • Decreased production caused by factors like heatwaves and irregular monsoons has led to rising prices for these essential food items.

Delhi Air Pollution: Causes, Impact & Measures (The Hindu)

  • 04 Nov 2023

Why is it in the News?

The air quality in Delhi-NCR declined over the past week due to a gradual drop in temperatures, calm winds that trap pollution, and a surge in post-harvest paddy straw burning across Punjab and Haryana.

Context:

  • The air quality in Delhi has plummeted to hit the ‘severe’ category for the first time this season, with the AQI breaching the 450 mark according to the Central Pollution Control Board (CPCB).
  • The State government implemented restrictions, including banning construction and demolition activities.
  • Over the last few years, Delhi and its surrounding areas have been subject to hazardous smog, which conincides with the winter months rolling in.
  • Smoke from farmers burning crop stubble, vehicle exhaust and factory emissions combine every winter to blanket the region in a toxic haze.

What is Pollution?

  • Pollution refers to the contamination of the earth's environment with materials that interfere with human health, quality of life or the natural functioning of the ecosystems.
  • The major forms of pollution include water pollution, air pollution, noise pollution and soil contamination.
  • Other less-recognised forms include thermal pollution and radioactive hazards.

What are the Reasons behind Rising Air Pollution in Delhi?

  • Delhi is one of the most polluted capital cities in the world for a variety of factors, including location (landlocked city), traffic patterns, dust, and farm fires.
  • However, weather also has a significant impact.
  • Typically, Delhi experiences deteriorating air quality from October to November, with improvements occurring from March to April.
  • Unlike the winter season, the current weather conditions are not unfavorable.
  • During winter, cool and calm weather tends to trap and intensify daily pollution, especially in northern India within the Indo-Gangetic Plain.
  • In addition to local emissions, the decline in air quality is primarily attributed to an increase in fire incidents, largely resulting from the burning of wheat crop stubble in northern India especially Punjab and Haryana.
  • Air Pollution in Delhi-NCR and the Indo-Gangetic Plains is a complex issue influenced by a variety of factors.
  • Location: Delhi is a landlocked city compared to Mumbai and Kolkata so the level of pollution is more as the level of particulate matter and pollutants is not able to get discharged into the surrounding areas.
  • Wind Direction: In October, the monsoons withdraw from Northwest India, bringing northwesterly winds.
  • During summers, northwesterly winds transport dust from northern Pakistan and Afghanistan.
  • Reduced Wind Speed: Winters see lower wind speeds compared to summers, making the region more susceptible to pollution.
  • Delhi's landlocked position doesn't benefit from the sea breeze that disperses pollutants in other parts of the country.
  • Stubble Burning: Burning crop stubble in states like Punjab, Rajasthan, and Haryana adds to the winter smog.
  • This practice releases harmful gases like methane, carbon monoxide, volatile organic compounds, and carcinogenic polycyclic aromatic hydrocarbons.
  • Vehicular Pollution: Vehicular emissions significantly contribute to declining air quality in Delhi during winter, accounting for about 20% of the problem.
  • Dust Storms: Dust storms from Gulf countries worsen the existing pollution levels.
  • Dry and cold weather results in dusty conditions from October to June, contributing to PM10 and PM2.5 pollutants.
  • Temperature Drop: Lower temperatures reduce the inversion height, concentrating pollutants in the lower atmosphere.
  • The inversion height is the layer beyond which pollutants cannot disperse upward.
  • Firecrackers: Despite bans on firecracker sales, Diwali celebrations with fireworks contribute to air pollution.
  • Construction Activities and Open Waste Burning: Large-scale construction projects in Delhi-NCR increase dust and pollution.
  • Landfill sites and open waste burning also add to air pollution concerns.

Impact of Air Pollution on health:

  • Respiratory Issues: Air pollution is a major cause of respiratory problems, including asthma, bronchitis, and lung infections.
  • It can exacerbate existing conditions and increase the risk of developing them.
  • Cardiovascular Diseases: Poor air quality is linked to heart problems, including heart attacks and stroke, as it can lead to the buildup of plaque in blood vessels and raise blood pressure.
  • Cancer Risk: Long-term exposure to certain air pollutants is associated with an increased risk of lung and other types of cancer.
  • Neurological Effects: Emerging research suggests that air pollution may have adverse effects on the central nervous system and could be linked to cognitive decline and mental health issues.
  • Reduced Life Expectancy: Prolonged exposure to air pollution is associated with a shortened life expectancy, as it contributes to a range of health problems that can be life-threatening.

Impact of Air Pollution on Economic Growth:

  • Healthcare Costs: Air pollution increases medical expenses due to illnesses, reducing economic growth.
  • Lower Productivity: Poor air quality impairs worker productivity, hampering economic output.
  • Tourism and Investment: Severe pollution deters tourists and investors, affecting local economies.
  • Agricultural Losses: Air pollution harms crops, impacting food production and livelihoods.
  • Environmental Cleanup Costs: Funds spent on pollution control divert resources from productive sectors, hindering economic growth.

What Steps Should Be Taken to Address Pollution in Delhi?

  • Congestion Charge: Introducing a congestion charge for private vehicles during peak hours can alleviate traffic congestion and promote public transport or carpooling.
  • Revenue generated from this charge can support green projects or subsidize electric vehicles, encouraging eco-friendly choices.
  • Cap-and-Trade for Industrial Emissions: Implementing a cap-and-trade system sets emission limits for industries, fostering a market-driven approach to pollution reduction.
  • This incentivizes industries to lower emissions and invest in cleaner technologies, ultimately reducing pollution.
  • Drones for Pollution Control: Utilizing drones to detect and mitigate pollution hotspots is a proactive measure for managing air quality.
  • Drones provide real-time air quality data with high resolution, allowing for public accessibility and targeted intervention.
  • Vertical Gardens: Incorporating vertical gardens in urban areas enhances aesthetics and air quality.
  • They absorb carbon dioxide, release oxygen, and create habitats for wildlife, contributing to urban biodiversity.
  • Rewards for Low-Carbon Lifestyles: Promoting low-carbon living through a rewards system, such as points, vouchers, or tax benefits for eco-friendly choices like public transport or carpooling, encourages environmentally conscious behavior, reducing carbon footprints.

Government Measures to Combat Pollution in Delhi:

  • National Clean Air Programme (NCAP): Aims to reduce PM10 and PM2.5 particles by at least 20% by 2024 compared to 2017 levels.
  • Graded Response Action Plan (GRAP): As per a Supreme Court order, GRAP outlines actions based on different Air Quality Index categories, addressing air quality in Delhi and the National Capital Region.
  • Stubble Burning Mitigation: Various short-term solutions, both in-situ and ex-situ, have been introduced to address crop stubble burning, such as Subsidy to farmers for Turbo happy seeders and bio-decomposers.
  • Turbo Happy Seeder (THS) is a machine mounted on a tractor that cuts and uproots the stubble, in order to reduce stubble burning.
  • Mobile Enforcement Teams: Enforce regulations against vehicular pollution, complemented by public awareness campaigns and investments in mass rapid transport systems. Phasing out old commercial vehicles is also underway.
  • Cleaner Transport: The introduction of BS-VI vehicles, push for electric vehicles (EVs), Odd-Even as an emergency measure and construction of the Eastern and Western Peripheral Expressways to reduce vehicular pollution.
  • Improved Farming Practices: Encouraging better disposal of crop residue and exploring cost-effective solutions, like chemical decomposition by the Indian Agricultural Research Institute, are essential for tackling stubble burning.
  • "Green War Room": This initiative uses satellite data to identify sources of smog, particularly farm fires in Punjab and Haryana, and takes necessary action.

In response to a growing environmental and health crisis, antipollution measures are being strengthened. However, to ensure success, government bodies at various levels must need to gather the political will to boost investment, foster cross-boundary cooperation, and motivate both citizens and businesses to make their contributions.

CAR-T Cell Therapy (Indian Express)

  • 03 Nov 2023

Why is it in the News?

The drugs regulator has granted market authorisation to India's breakthrough CAR-T cell therapy for patients with B-cell lymphomas who didn't respond to standard treatments like chemotherapy.

News Summary:

  • India’s first indigenously developed Chimeric Antigen Receptor (CAR)-T Cell T therapy, a cutting-edge treatment for specific types of cancer patients, has shown promising results and could be the safest therapy in this category so far, researchers have said.
  • The therapy was tested on six paediatric patients of Acute Lymphocytic Leukaemia and 10 adults suffering from B-cell lymphoma as part of phase one clinical trials by researchers associated with the Tata Memorial Hospital in Mumbai and the Indian Institute of Technology, Bombay.

What is CAR-T cell therapy, and how do CAR-T cells find and destroy cancer cells?

  • CAR-T is a revolutionary therapy that modifies immune cells, specifically T-cells, by turning them into potent cancer fighters known as CAR-T cells.
  • T-cells are special cells (white blood cells that find and fight illness and infection) whose primary function is cytotoxic, meaning they can kill other cells.
  • In CAR-T therapy, we genetically modify them into cancer-fighting cells. These supercharged cells are then put back into the body, and they go after cancer cells — especially in blood cancers like leukaemia and lymphomas.

Here's how CAR-T cell therapy works?

  • Collection: First, a patient's T cells are taken from their blood through a process called "leukapheresis."
  • Genetic Modification: These T cells are then sent to a laboratory where they are genetically modified to make them better at attacking cancer.
  • Preparation: Before the modified T cells are returned to the patient, the patient typically undergoes several days of chemotherapy.
  • This chemotherapy helps create the right environment in the body for the modified T cells to work against the cancer.
  • Infusion: Once the environment is ready, the patient receives an infusion of the modified T cells.
  • This process is similar to receiving a blood transfusion and takes about 30 to 90 minutes.
  • Activation: The CAR-T cells become active and start to attack the cancer cells.
  • However, this activation process can lead to side effects, such as a high fever, a fast heart rate, low blood pressure, and low blood oxygen levels.
  • Some patients may also experience temporary neurological effects like confusion, tremors, and difficulty communicating.
  • Recovery typically occurs within two weeks after one cycle of the treatment.
  • Approximately 70% of patients respond to the treatment, with variations between leukaemia and lymphoma cases.
  • About 50% of these responsive patients achieve a complete response.

How effective and different is this from other cancer treatments like, say, chemotherapy?

  • While chemotherapy and immunotherapy may add a few months or years to a cancer patient’s life, cell-and-gene therapy is designed to cure and provide lifelong benefits.
  • It makes treatment easier with a one-time therapy [unlike several sessions of chemotherapy] that can be truly transformative [for a patient].
  • It’s a lifeline for non-responsive cancer patients.

What is NexCAR19?

  • NexCar19 is a type of CAR-T and gene therapy developed indigenously in India by ImmunoACT, which is a company incubated at IIT Bombay.
  • This therapy is designed to target cancer cells that carry the CD19 protein.
  • This protein acts like a flag on cancer cells, which allows CAR-T cells to recognise and attach themselves to the cancer cells and start the process of elimination.
  • India is now one of the first developing countries to have its indigenous CAR-T and gene therapy platform.
  • Even some developed nations don’t have their own CAR-T therapies; they import them from the United States or Europe.

Who is eligible for the NexCAR19 therapy?

  • This therapy is for people with B-cell lymphomas who didn’t respond to standard treatments like chemotherapy, leading to relapse or recurrence of the cancer.
  • B-cell lymphoma is a kind of cancer that begins in white blood cells called lymphocytes.
  • Lymphocytes produce antibodies, which are proteins that aid in the fight against infections.
  • They are frequently discovered in lymph nodes and other lymphoid organs, like the spleen.

Are the children eligible for this therapy too?

  • B-cell leukaemia is most common among children.
  • The paediatric trial phase is currently underway at the Tata Memorial Hospital, in collaboration with IIT-Bombay.
  • Although the therapy for children will not be any different, for now, ImmunoACT has received CDSCO approval for use in patients aged 15 years and older.

Is there any side-effects of this therapy?

  • It significantly reduces drug-related toxicities, causing minimal harm to neurons and the central nervous system—a condition known as neurotoxicity.
  • Neurotoxicity can occasionally occur when CAR-T cells recognize the CD19 protein and access the brain, potentially leading to life-threatening situations.
  • Additionally, the therapy results in minimal Cytokine Release Syndrome (CRS), characterized by inflammation and hyperinflammation in the body due to the death of a substantial number of tumor cells.

Conclusion

The treatment is not intended for someone who is newly diagnosed. Instead, it’s an alternative for those who already have gone through other more conventional cancer therapy, such as chemotherapy or immunotherapy, and that treatment has been unsuccessful.

A considerable amount of research is underway to see if CAR-T cell therapy could be appropriate as a treatment for different forms of cancer, too, including other blood cancers such as multiple myeloma. So if a patient has a type of cancer that hasn’t responded well to traditional treatment, it may be worthwhile to explore the possibility of enrolling in a clinical research trial that’s using CAR-T cell therapy.

Biofuels and Global Biofuels Alliance (TOI)

  • 01 Nov 2023

Why is it in the News?

The Global Biofuel Alliance, formed during the recent G20 summit in India, aims to support the development and deployment of sustainable biofuels.

What are Biofuels?

  • Biofuels are sustainable fuels made from a variety of organic materials (e.g. wood, crops, oil, algae, organic residues, etc.) called biomass.
  • According to the International Energy Agency (IEA), biofuels are liquid fuels derived from biomass.
  • It can be used as an alternative to fossil fuel-based liquid transportation fuels such as gasoline, diesel and aviation fuels.

How are Biofuels Produced?

  • Biofuels can be produced from several methods or production pathways, including transesterification, hydrotreating, gasification, Fischer-Tropsch synthesis, fermentation and pyrolysis.
  • Biofuels are generally divided into four categories – or generations – according to feedstock – or the type of biomass – used.
  • First-generation biofuels, known as conventional biofuels, are produced from agricultural food crops, vegetable oil, and food waste.
  • Higher carbon content and emit greenhouse gases.
  • Second-generation biofuels, called advanced biofuels, are made from energy crops, agricultural or forest residue, known as lignocellulosic biomass.
  • Greenhouse content less than 1st generation biofuel
  • Third-generation biofuels are made from the byproducts of microorganisms, such as algae, natural organisms that can be rapidly produced with little energy and without disrupting ecosystems.
  • Carbon Neutral (CO2 emitted=CO2 sequestered)
  • 4th Generation biofuels are produced from genetically engineered crops like GM crops, pyrolysis, gasification etc. and are Carbon Negative.

What are the advantages of Biofuels?

  • Biofuel Availability: Biofuels can be produced in multiple locations and from diverse sources, making global production and distribution realistic.
  • Renewable Energy: Biofuels come from plants, so we can keep growing them, making biofuels a sustainable energy source.
  • Energy Independence: Using biofuels means we rely less on foreign oil, saving money on imports and boosting our energy security.
  • Cleaner Environment: Biofuels produce fewer harmful gases compared to fossil fuels, which helps keep our environment cleaner.
  • Income for Farmers: Biofuels can give farmers extra income, which aligns with the goal of doubling their earnings.
  • Plenty of Biofuel Sources: We can make biofuels from different things like plants, waste, and algae, so there's a lot of it available.

What are the disadvantages of Biofuels?

  • Biofuel sustainability: End-to-end sustainability is a key question, as biofuels must come from a green supply chain, starting with sustainable biomass production.
  • Land used for biofuel production needs to be closely monitored, ensuring sustainable management practices and avoiding crop displacement.
  • Resource Demand: Making biofuels needs a lot of land and water.
  • In countries like India, where there's not much extra land for farming, it might not be a good idea to use it for biofuels.
  • Competition with Food: Biofuel production and food production sometimes fight for the same land and resources.
  • This can lead to higher food prices and make it hard for people to get enough to eat.
  • Greenhouse Gases: Surprisingly, some biofuels can produce even more greenhouse gases than regular fossil fuels.
  • This happens when we use land that was once covered in forests to grow crops for biofuels.

Are Biofuels a Replacement for Fossil Fuels?

  • There is a difference between biofuels and sustainable biofuels according to experts.
  • While 1G ethanol is considered a biofuel, experts categorize 2G ethanol as sustainable biofuels.
  • The problem has gained significant attention recently due to the acceleration of climate change, raising worries about the threat to food security and the increasing loss of forests and biodiversity as a result of the increased area required for farming.
  • Estimates show that far over half of all vegetated land is currently under cultivation, making agriculture one of the primary global sources of carbon emissions.
  • The Global Biofuels Alliance (GBA) has said unequivocally that producing 2G ethanol would be its primary objective.

Biofuels and the Energy Shift:

When it comes to changing our energy sources, biofuels play a role:

  • Right now, most biofuels are mixed with regular gasoline or diesel to some extent.
  • India, for example, is increasing the use of 20% ethanol-blended petrol across the country by 2025.
  • Some experts think that electric vehicles (EVs) and green hydrogen are the main focus for our energy future.
  • But others believe that 2G ethanol can help in the transition. It can reduce greenhouse gas emissions and keep internal combustion engines in use longer.
  • This gives time for new alternatives to develop, helps farmers, and creates jobs.

What is the Global Biofuels Alliance (GBA)?

  • The Global Biofuel Alliance (GBA) is an initiative by India as the G20 Chair.
  • The Alliance intends to expedite the global uptake of biofuels through facilitating technology advancements, intensifying the utilization of sustainable biofuels, and shaping robust standard setting and certification through the participation of a wide spectrum of stakeholders.
  • The alliance will also act as a central repository of knowledge and an expert hub.
  • GBA aims to serve as a catalytic platform, fostering global collaboration for the advancement and widespread adoption of biofuels.
  • This transition aims to reduce reliance on fossil fuels, create employment opportunities, and stimulate economic growth.
  • Members: The GBA has already gained support from 19 countries and garnered the interest of 12 international organizations.
  • Notably, seven G20 countries, including Argentina, Brazil, Canada, India, Italy, South Africa, and the United States, are actively supporting the GBA
  • Additionally, four G20 invitee countries (Bangladesh, Singapore, Mauritius, UAE) are also backing this initiative.
  • Furthermore, eight non-G20 countries (Iceland, Kenya, Guyana, Paraguay, Seychelles, Sri Lanka, Uganda, and Finland) have agreed to be initiated members of the GBA.
  • International organizations including, the World Bank, Asian Development Bank, World Economic Forum, World LPG Organization, UN Energy for All, UNIDO, Biofutures Platform, International Civil Aviation Organization, International Energy Agency, International Energy Forum, International Renewable Energy Agency, World Biogas Association.

How the GBA Operate?

  • The GBA has a multifaceted approach to support the global development and deployment of sustainable biofuels.
  • It provides capacity-building exercises across the entire biofuel production value chain and offers technical support for national biofuel programs.
  • Moreover, the GBA aims to foster knowledge sharing regarding policy best practices among its members.
  • The GBA plans to establish a virtual marketplace that helps industries, countries, ecosystem participants, and key stakeholders connect by mapping the demand and supply of biofuels.
  • It will also facilitate the development, adoption, and implementation of internationally recognized standards, codes, sustainability principles, and regulations.
  • These efforts are designed to incentivize the adoption and trade of biofuels on a global scale.

Significance for India:

  • The GBA holds particular significance for India.
  • It is a tangible outcome of India's G20 presidency, reinforcing the nation's global presence.
  • Collaboration within the alliance provides additional opportunities for Indian industries, allowing them to export technology and equipment related to biofuels.
  • This collaboration also accelerates existing Indian biofuel programs, such as PM-JIVAN Yojna, SATAT, and the GOBARdhan scheme.
  • By doing so, it contributes to increasing farmers' income, creating job opportunities, and fostering overall development within the Indian ecosystem.

Steps taken by GOI to promote biofuels:

  • Pradhan Mantri JI-VAN Yojana (2019): This scheme aims to create a system for commercial projects and boost Research and Development in 2G Ethanol production.
  • GOBAR DHAN Scheme (2018): This scheme focuses on managing cattle dung and farm waste to create useful compost, biogas, and bio-CNG.
  • This not only keeps villages clean but also increases the income of rural households.
  • It was launched under the Swachh Bharat Mission (Gramin).
  • Ethanol Blending: The 2018 Biofuel Policy set a goal to reach 20% ethanol blending and 5% biodiesel blending by 2030.
  • However, the government now plans to achieve the 20% ethanol blending target by 2025-26 instead of 2030.
  • National Policy on Biofuels (2018): This policy classifies biofuels into "Basic Biofuels" like 1G bioethanol and biodiesel and "Advanced Biofuels" like 2G ethanol, converting municipal solid waste into drop-in fuels, 3G biofuels, and bio-CNG.
  • It provides financial and fiscal incentives to promote each category of biofuels.
  • Repurpose Used Cooking Oil (RUCO): This initiative, launched by the Food Safety and Standards Authority of India (FSSAI), aims to collect and convert used cooking oil into biodiesel.

Conclusion

While biofuels hold potential in the fight against climate change, their practical viability remains uncertain. In countries like India, where agricultural surplus is limited, their role as a major energy source may be challenging. Nevertheless, biofuels can still contribute to a greener future through sustainable production and consumption practices. The success of the GBA will determine the extent to which biofuels can play a meaningful role in addressing climate change and energy needs.

Vision document to make India a $30 trillion economy by 2047 (TOI)

  • 31 Oct 2023

Why is it in the News?

India will aim to become a ‘developed nation’ by 2047, with an economy of $30 trillion in its 100th year of independence, which will be propelled by radical policy changes and reforms in governance by 2030.

News Summary:

  • The 'Viksit Bharat @2047' document, which outlines this vision, is nearing completion, following its inception in December 2021 by Prime Minister Narendra Modi.
  • Ten sectoral groups of secretaries (SGoSs) were entrusted with the task of preparing sector-specific visions, and these are nearly finalized.
  • Niti Aayog will consolidate these sectoral visions into a single comprehensive document by December, following consultations with SGoSs and thought leaders, including industry leaders.
  • Prime Minister Modi is expected to unveil this vision document in December or January.

What is the Current State of the Indian Economy?

  • India’s economy was $3.5 trillion in FY23, but currently with a GDP of $3.7 trillion, it is estimated to be the 5th largest economy in the world and according to some projections, India's GDP will surpass that of Germany and Japan by 2030.
  • The country’s per capita income was estimated at around $2,500 in FY23.
  • Nations with per capita income beyond a threshold of $17,000 are considered as developed.
  • This rapid rate of economic expansion would result in India becoming the second-largest economy in the Asia-Pacific region.

NITI Aayog Vision India@2047 Document:

  • The process of shaping the Vision India@2047 document commenced in December 2021.
  • To ensure comprehensive coverage, ten groups of secretaries were assembled, each focused on distinct sectors such as rural and agriculture, infrastructure, social vision, welfare, technology, governance, security, foreign affairs, and more.
  • This document will provide a blueprint for achieving the ambitious goal of transforming India into a $30-trillion developed economy by 2047, with a per-capita income ranging from $18,000 to $20,000.
  • It will encompass a range of crucial elements, including re-engineering government processes, implementing reforms, and streamlining the efforts of various ministries and departments to eliminate redundancy.
  • Expect insights into India's global involvement in areas like trade, investment, technology, capital flows, and research and development.
  • Furthermore, the document will shed light on which Indian companies are poised to lead on the global stage and the strategic approach for nurturing the ecosystem required to realize this vision.
  • It will also delve into matters related to human capital development, leveraging the nation's vast market size, and addressing regional disparities.
  • The vision document will also provide a roadmap, delineating where India aims to be in 2030 and, ultimately, in 2047."

What are the obstacles ahead in implementing the Vision India@2047?

  • NITI Aayog is assisting Gujarat and Andhra Pradesh in preparing their vision documents in order to bring them into compliance with the national vision document.
  • While other states, such as Uttarakhand, Goa, Tamil Nadu, and Uttar Pradesh, are working on their own documents.
  • Middle-income trap: The plan will include safeguards to make sure the economy stays out of the "middle-income trap".

What is the middle-income trap?

  • According to the World Bank, the term "middle-income trap" describes a scenario in which a nation with a middle-class income is unable to make the transition to a high-income economy because of growing expenses and a decrease in its competitiveness.
  • It's when per capita income reaches around $5,000 to $6,000, and then progress slows down.
  • Low-income countries often tend to transition faster to middle-income levels, driven by low wages, cheap labour and basic technology catch-up.
  • However, only a few countries manage to achieve high-income status.

What are the reasons for the middle-income trap?

  • An example of what is known as the "middle-income trap" is when labour wages become so high that a middle-income nation is unable to compete on a global scale in the production of standardized, labour-intensive goods.
  • But because of its relatively low productivity, it is also unable to compete on a large enough scale in higher value-added activities.
  • As a result, growth is slowing, wages are stagnant or falling, and the informal economy is expanding.

Countries that are stuck in the middle-income trap:

  • Historically, some evidence suggests that Latin American and Middle Eastern countries suffered middle-income traps for at least four or five decades.
  • According to a World Bank report, out of 101 middle-income countries in 1960, only 13 countries achieved high-income status by 200
  • The most recent examples are Brazil and Mexico, which were touted to transition to developed economies but failed to achieve the same success as Japan or some countries in Eastern Europe.

What Strategies Can Help India Overcome Middle-Income Traps?

  • Investment: India should aim for an investment-to-GDP ratio of 35%. Achieving this goal requires boosting savings to 32% of GDP.
  • In the fiscal year 2022, savings and investment rates were 30.2% and 29.6%, respectively, indicating the need for further growth.
  • Balancing Fiscal Consolidation with Growth: India faces a challenge with a general public debt of 83% of GDP and high fiscal deficits.
  • Balancing fiscal consolidation while meeting targets set under the Fiscal Responsibility and Budget Management (FRBM) framework is crucial.
  • Structural Reforms: The Asian Development Bank (ADB) emphasizes the need for structural reforms in India to address issues like structural bottlenecks, declining investment, and an increasing current account deficit.
  • Notable reforms include the Insolvency and Bankruptcy Code (IBC), which has strengthened the country's banking systems.
  • Education and Skill Development: Skill development is vital for enhancing labour productivity and promoting inclusive growth.
  • Recent reports suggest that employability among young people needs improvement, emphasizing the importance of education and skill enhancement programs.
  • Research, Development, and Innovation: Innovation plays a significant role in transforming India's economy. India's progress in the Global Innovation Index reflects its potential.
  • Initiatives like the CoWin platform for monitoring vaccination programs and the development of data ecosystems through platforms like UPI and Aadhaar are driving India's growth.
  • Climate Change Adaptation: India should focus on developing and customizing adaptation technologies and solutions to address climate-induced vulnerabilities.
  • This includes addressing challenges in agricultural production, food security, disaster risks, resource access (water, power, coastal resources), and human health in the face of climate change.

Controversies Arising from a Potential Nobel Prize for mRNA COVID Vaccines (The Hindu)

  • 05 Oct 2023

Why is it in the News?

The 2023 Nobel Prize for Physiology or Medicine has been granted to Katalin Karikó and Drew Weissman in recognition of their contribution to the development of mRNA vaccine technology. While the Nobel Prizes are intended to honor achievements that have benefited humanity, a strict assessment of scientific accomplishments raises questions about whether the subset of mRNA vaccines used during the COVID-19 pandemic fully aligns with these standards.

What is an mRNA Vaccine?

  • Messenger RNA (mRNA) is a type of single-stranded RNA crucial for protein synthesis.
  • It is synthesized from a DNA template during the transcription process.
  • mRNA vaccines function by introducing a specific mRNA fragment that corresponds to a viral protein, often a segment of a protein located on the virus's outer surface.
  • When this mRNA enters cells, it instructs them to produce the viral protein.
  • As part of the body's natural immune response, the immune system recognizes this foreign protein and generates specialized proteins known as antibodies.
  • Antibodies play a vital role in defending the body against infections by identifying individual viruses or pathogens, binding to them, and marking them for elimination.
  • Even after the body has cleared the pathogen, these antibodies persist in the body, providing long-lasting immunity and enabling a rapid response if the same pathogen is encountered again.

Challenges Surrounding Nobel Recognition for mRNA Vaccines:

Prioritizing Profit over Ethics

  • Katalin Karikó and Dr. Weissman initiated their collaboration on mRNA technology while at the University of Pennsylvania in the late 1990s.
  • The University granted patents for this technology to mRNA RiboTherapeutics, which subsequently sublicensed them to CellScript.
  • CellScript, in turn, sublicensed the technology to Moderna and BioNTech for substantial sums of $75 million each.
  • Karikó joined BioNTech as a senior vice president in 2013, leading to the company's partnership with Pfizer to develop an mRNA-based COVID-19 vaccine in 2020.

Substantial Research Supported by Public Funds

  • A considerable portion of the research underpinning many new drugs and vaccines is conducted with funding from governments and public resources.
  • This phase of drug development is both risky and time-consuming, involving the exploration of potential biomolecular targets within the body that can be targeted by drugs to treat specific ailments, as well as the identification of suitable chemical candidates.
  • The estimated costs and timeframes for this stage typically range from $1 billion to $2.5 billion and several decades, respectively.

Later Commercialization of Publicly Funded Research by Private Entities

  • Private companies then proceed to commodify and commercialize the outcomes of this research, often reaping substantial profits—frequently at the expense of the very taxpayers who funded the initial research.
  • For instance, when Moderna and Pfizer began manufacturing their mRNA-based COVID-19 vaccines, they prioritized securing ample supplies for themselves before allowing exports to the global community.
  • Furthermore, the use of these vaccines in other countries, including India, faced complications due to protracted negotiations related to pricing and liability.

The Challenges Encountered by the COVAX Program:

The COVAX Program

  • The COVID-19 Vaccines Global Access program, abbreviated as COVAX, was a global initiative with the goal of ensuring fair access to COVID-19 vaccines. It was led by the GAVI vaccine alliance.
  • COVAX constituted one of the four essential components of the Access to COVID-19 Tools Accelerator, initiated in 2020 by the WHO, the European Commission, and the government of France in response to the COVID-19 pandemic.
  • This initiative orchestrated international efforts to provide equitable access to COVID-19 tests, treatments, and vaccines for low- and middle-income countries.
  • UNICEF played a crucial role as the primary delivery partner, leveraging its extensive experience as the world's largest vaccine purchaser.
  • UNICEF was responsible for procuring COVID-19 vaccine doses, managing logistics, ensuring country readiness, and overseeing in-country vaccine distribution.
  • As of October 19, 2020, 184 countries had become participants in the COVAX program.

Challenges Faced by the COVAX Program

  • Unfortunately, the COVAX program encountered significant obstacles in achieving its objectives.
  • Notably, India, Russia, and China were notable exporters of billions of vaccine doses.
  • However, their efforts faced issues related to the potential overestimation of manufacturing capacity in India, as well as concerns about the quality of vaccines from Russia and China.
  • Moreover, there were reports of several African countries having to discard large quantities of vaccine doses due to their proximity to expiration dates when they were exported.

The Corbevax Initiative: Contrasting Dr. Karikó's Journey

  • A team of researchers from the Baylor College of Medicine in Houston, among others, pioneered the development of a protein sub-unit vaccine called Corbevax.
  • This vaccine was subsequently licensed to India's Biological E for production, notably without pursuing a patent.
  • In February 2022, a Texas politician penned a letter recommending the vaccine's creators for the Nobel Peace Prize.
  • They were acknowledged for their remarkable efforts in developing and distributing an affordable COVID-19 vaccine worldwide, free from patent constraints.
  • Kenya's Ambassador to the United Nations also lauded these researchers for providing essential ethical and scientific guidance on a global scale.

In Conclusion

  • Scientists should not be faulted for seeking to benefit from their research.
  • However, the narrative of mRNA vaccines during the COVID-19 pandemic has raised questions about this selflessness.
  • Throughout the pandemic, this technology had the potential to benefit everyone but faced certain limitations.
  • Therefore, it is essential for history to accurately record the events that unfolded during the pandemic, contrasting with what the 2023 Nobel Prize in Medicine signifies.

Why the Monetary Policy Committee (MPC) Is Expected to Sustain the Repo Rate Pause: Insights into RBI's Policy (Indian Express)

  • 03 Oct 2023

Why is it in the News?

  • The Reserve Bank of India's Monetary Policy Committee (MPC) is going to meet from October 4 to 6.
  • During this meeting, it is expected that the MPC will not change the repo rate, which is currently at 6.5 percent.
  • This will be the fourth time in a row that they keep it the same.
  • The reason for this decision is that inflation, which is measured using the consumer price index (CPI), is staying high.
  • Additionally, it's likely that the central bank will stick to its plan of reducing the amount of money in the economy, which is known as a 'withdrawal of accommodation' stance.
  • This is done to control inflation and prevent it from getting worse.
  • On the other hand, if they were to take an 'accommodative stance,' it would mean that the central bank is willing to increase the money supply in order to boost economic growth.

Why is RBI likely to keep things the same in its policy?

Domestic Challenges:

  • Consumption Concerns: There are worries about people buying less due to high food prices.
  • Monsoon Trouble: The monsoon season hasn't been consistent, which is affecting crops like kharif.
  • Higher Interest Rates: Interest rates are up, which can impact borrowing and spending.
  • Inflation is still high, at 6.8 percent. While it's expected to drop, there's some concern about the kharif crop, especially pulses, which could make prices go up.
  • The RBI Governor has also pointed out that frequent food price increases can make it harder to control inflation.

External Challenges:

  • Rising Oil Prices: Oil prices worldwide have gone up, averaging nearly $89 per barrel. This is a 12.6 percent increase since the last policy.
  • Russia-Ukraine War: The conflict between Russia and Ukraine is causing problems in the supply chains for many goods.

Is there going to be a revision in the GDP growth prediction?

  • According to experts, it's unlikely that the RBI will alter its GDP forecast in the upcoming monetary policy announcement.
  • The basic factors supporting growth still look positive, but there's a significant question mark regarding how a poor monsoon might affect agricultural production.
  • Additionally, there's anticipation of an ongoing economic slowdown in Europe and China, which could lead to reduced exports and potential challenges for rural demand due to this year's weak monsoon.

Will there be any announcements regarding liquidity measures?

  • According to experts, it's unlikely that the RBI will introduce any specific liquidity measures at this time, as the current liquidity situation is already tight.
  • Furthermore, the RBI is in the process of reversing the incremental cash reserve ratio (I-CRR), which was introduced in the August policy.
  • I-CRR is an extra cash reserve that banks have to maintain on top of the standard cash reserve ratio (CRR), which is the portion of deposits that banks must keep with the RBI.
  • The RBI declared the discontinuation of I-CRR on September 8.
  • However, despite the gradual withdrawal of I-CRR, there has been a liquidity deficit in the system since mid-September due to quarterly tax outflows and GST payments.
  • Additionally, interventions in the foreign exchange market aimed at supporting the rupee may have slightly absorbed some rupee liquidity.

What is the Monetary Policy Committee (MPC)?

  • According to Section 45ZB of the revised RBI Act of 1934, the central government has the authority to establish a six-member Monetary Policy Committee (MPC).
  • The MPC's main responsibility is to decide the policy interest rate necessary to achieve the inflation target. The first MPC was formed in September 2016.
  • Members of MPC
  • As per the amended RBI act, the MPC is composed of the following members:
  • The RBI Governor, who serves as its ex officio chairperson.
  • The Deputy Governor responsible for monetary policy.
  • An officer from the Bank nominated by the Central Board.
  • Three individuals appointed by the central government.

Functions of MPC:

  • Setting Policy Interest Rates: The primary role of the MPC is to determine policy interest rates, specifically the repo rate.
  • Inflation Targeting: The government has set a current inflation target, which is a Consumer Price Index (CPI) inflation goal of 4% with a tolerance range of +/- 2%.
  • Economic Analysis and Forecasting: The MPC conducts comprehensive analysis and forecasting of various economic indicators, including inflation, GDP growth, employment, fiscal conditions, and global economic trends.
  • Decision-Making: The MPC convenes at least four times a year to assess the direction of monetary policy.

Presidential Election in Maldives and India (The Hindu)

  • 02 Oct 2023

Why is it in the News?

Mohamed Muizzu, the leading candidate from the Opposition, has secured the position of President in the Maldives. He emerged victorious in a closely contested election, defeating the incumbent Ibrahim Mohamed Solih, who had friendly relations with India.

News Summary About Maldives Presidential Election:

  • The Maldives has chosen Mohamed Muizzu as its new president, ousting the incumbent Ibrahim Mohamed Solih, known for his pro-India stance.
  • President Solih faced criticism from the Opposition for his 'India first' policy.

Key Points:

  • In the second round of the Presidential Election, Mr. Muizzu secured approximately 54% of the vote, while Mr. Solih garnered nearly 46%.
  • The run-off election witnessed a higher voter turnout of 86%, surpassing the 79.85% recorded in the first round, which was the lowest in Maldivian presidential election history.
  • The initial round did not produce a clear winner, as no candidate managed to obtain more than 50% of the votes.

Electoral System in the Maldives:

  • Parliament Name: The legislative body in the Maldives is known as Majlis or People's Majlis.
  • Parliament Structure: Maldives follows a unicameral parliamentary structure.
  • First-Past-the-Post Majority System: In the Maldives, both Parliament and Council elections utilize the first-past-the-post majority system, where voters cast their ballots for a single candidate.
  • Term Duration: The Majlis consists of 87 members, each directly elected for a five-year term from 87 individual single-member constituencies.
  • Two-Round System: The President of the Maldives is elected using a two-round system.
  • If no candidate secures more than 50% of the votes in the first round, a second round or run-off is conducted.
  • 2023 Maldives Election: The initial round of the election featured eight candidates, marking the highest number of candidates so far.
  • The Maldives has a population of approximately 5.2 lakh people.
  • As per the Election Commission of the Maldives, there are 2.8 lakh eligible voters, with around 1.6 lakh being members of various political parties.

Evolution of the Executive Presidency System in the Maldives:

  • Single-Party System Until 2008: The Maldives operated under an Executive Presidency system since 1968.
  • It adhered to a single-party system until 2008, where the President was elected for a five-year term through a referendum.
  • Maumoon Abdul Gayoom's 30-Year Rule: Ibrahim Naseer served as the first executive President from 1968 to 1978.
  • Due to political protests in 1978, Naseer did not seek re-election for a third term.
  • In 1978, the Maldivian parliament selected Maumoon Abdul Gayoom as the succeeding President.
  • Gayoom led the nation for an astonishing 30 years, until 2008, effectively managing protests and famously thwarting a coup attempt with India's assistance in 1988.
  • Era of the Multi-Party System: In response to protests by various factions, Gayoom initiated political reforms in 2004.
  • Political parties were officially registered in 2005, and a new Constitution was adopted in 2008.
  • These changes paved the way for Presidential elections every five years, embracing a multi-party system.

India's Engagement with Maldivian Politics:

  • India's relationship with Maldivian politics has been a blend of experiences, with the Solih government being the most favorable thus far.
  • India collaborated closely with Abdul Gayoom's administration for three decades.
  • When Mohamed Nasheed assumed power in 2008, India expressed its support through then Vice President Hamid Ansari's attendance at his inauguration ceremony.
  • Tensions arose in 2012 when the Maldivian government terminated the GMR contract for the Maldives' airport, straining the bilateral relationship significantly.
  • Following Yameen's rise to power in 2013, he pursued a more aggressive courtship with China.
  • During his tenure, the Maldives joined President Xi Jinping's Belt and Road Initiative.
  • When India and Western lenders hesitated to extend loans to Yameen's government due to allegations of human rights violations, he turned to Beijing, which provided funding without stringent conditions.
  • Solih's victory in the 2018 elections was met with relief in Delhi.
  • Prime Minister Modi even attended Solih's swearing-in ceremony during his visit to the Maldives.

Potential Shift in Maldives' Foreign Policy:

  • The victory of Muizzu might indicate a possible adjustment in the Maldives' foreign policy.
  • He enjoys the support of former President Abdulla Yameen, known for his pro-China stance and 'India out' campaign.
  • Despite this, local observers in the Maldives believe that Mr. Muizzu is unlikely to abruptly sever ties with India.
  • The newly elected leader is expected to pursue a balanced approach in managing India-China relations.
  • Meanwhile, India hopes for the continuity of its various infrastructure projects in the Maldives.
  • India's recent initiatives in the Maldives encompass a wide range of projects, including water and sanitation in 34 islands, road construction, land reclamation as part of the Addu development project, a cancer hospital, a port project, a cricket stadium, two airport development projects, the Greater Male connectivity project with bridges, causeways, and roads, social housing projects, mosque renovations, and the establishment of the national college for police.
  • Estimates indicate that Indian aid to the Maldives from 2018 to 2022 exceeded Rs 1,100 crore, more than double the amount provided in the preceding five-year period (approximately Rs 500 crore).

Mains Question:

  • Evaluate the potential shifts in the Maldives' foreign policy under President Mohamed Muizzu, and elucidate the impact on its relationship with India, given historical dynamics and infrastructure projects. (15M)

The Geopolitical Significance of the Israel Link in an Economic Corridor (The Hindu)

  • 26 Sep 2023

Why is it in the News?

The G-20 Summit in 2023, hosted by India, achieved remarkable success despite the group's focus on economic matters in addressing global complexities. The global media recognized India's accomplishments during this summit for its diverse outcomes.

The significance of the G20 Delhi Declaration:

  • A Collaborative Consensus: The declaration achieved a rare consensus among countries with diverse perspectives and interests.
  • Balancing Act: The Delhi Declaration strikes a delicate balance by addressing global challenges without directly singling out specific nations for their actions.
  • For instance, it refrains from naming Russia's aggression against Ukraine but underscores the importance of upholding the United Nations charter and principles of territorial sovereignty.
  • Tailored to Diverse Interests: This balanced approach enables each member to identify elements in the declaration that align with their interests, contributing to its overall success.
  • Showcasing India's Diplomatic Expertise: The declaration's significance lies in its ability to secure agreement from major world leaders, even in the midst of international power dynamics.
  • Despite the absence of China's President Xi Jinping and Russian President Vladimir Putin at the summit, India demonstrated its diplomatic skill in bridging divides and fostering consensus among a diverse array of nations.

What is India-Middle East-Europe Economic Corridor (IMEEC)?

  • One of the most significant outcomes of the G20 summit was the unveiling of the ambitious India-Middle East-Europe Economic Corridor, IMEEC.
  • This corridor features a rail and sea route designed to facilitate the transportation of goods from India to Europe, passing through the UAE, Saudi Arabia, Jordan, and Israel.
  • The project's implications extend beyond economic matters; it has the potential to reshape geopolitics in the future.
  • Notably, it presents an intriguing challenge to China's Belt and Road Initiative, although this is just one aspect of its broader significance.
  • The U.S. President hailed IMEEC as 'a truly monumental development,' emphasizing its transformative potential for all parties involved and the global community at large.
  • The prompt endorsement of this project by the Israeli Prime Minister underscores Israel's eagerness to participate in this remarkable endeavor.

The Significance of IMEEC: A Game-Changer in Global Trade

  • A Transformative Impact: IMEEC is poised to be a potential game-changer in the realm of global trade, offering an alternative to China's extensive strategic infrastructure investments.
  • Enhancing Prosperity: This corridor promises to boost prosperity in the participating countries by facilitating the flow of energy and digital communications.
  • It addresses the pressing need for infrastructure in lower- and middle-income nations, fostering economic growth.
  • Strengthening Regional Ties: The improved infrastructure will not only drive economic growth but also promote closer ties among Middle Eastern countries.
  • Countering China's Influence:
  • IMEEC arrives at a juncture when Saudi Arabia and the UAE, traditional U.S. allies, have been strengthening their connections with China and the rapidly growing Eastern economies.
  • China's role in the Middle East has expanded, including its involvement in brokering regional agreements.
  • A Response to China's Belt and Road Initiative (BRI): Washington views IMEEC as an ambitious endeavor to counter China's Belt and Road Initiative, which aimed to enhance global connectivity with China's economy.
  • Recent challenges, such as rising loan defaults and slowed investments, have cast doubts on the viability of China's BRI.
  • Strategic Significance for India: For India, IMEEC holds immense geopolitical and trade importance.
  • Concerns arose over China's connectivity projects in the region, and India faced hurdles, including Pakistan's refusal to grant overland access.
  • India's attempts to establish credible connectivity through Iran faced challenges due to geopolitical complexities.
  • IMEEC provides a solution by offering connectivity to both the Arabian Peninsula and Europe, addressing India's strategic concerns.

The Role of Israel in the Economic Corridor

  • The U.S. initiative is designed to reshape the geoeconomic landscape of the Middle East through connectivity projects like IMEEC.
  • The United States believes that these projects can address concerns among Gulf countries, reaffirm its commitment to the region, reduce tensions with Iran, and strengthen its leadership in the Gulf.
  • However, achieving these strategic objectives hinges on advancing the normalization agenda outlined in the Abraham Accords, particularly with Saudi Arabia.
  • Furthermore, the normalization of relations between Israel and Saudi Arabia is a critical prerequisite for the realization of this economic corridor.

Why Israel Wasn't Part of the Corridor Launch

  • Unprecedented Middle Eastern Presence: India made history within the G20 by inviting the largest number of Middle Eastern countries ever to participate as guests in the summit.
  • However, notably, India's strategic partner from the region, Israel, did not receive a similar invitation.
  • Regional Considerations: India's decision to exclude Israel from the guest list may have been influenced by regional sensitivities, particularly regarding the preferences of Arab countries.
  • U.S. Influence: The U.S. administration's avoidance of engaging with the Israeli Prime Minister for several months due to domestic politics may have played a role in Israel's role at the summit.
  • Domestic Political Factors: In his statement following the corridor's launch, the Israeli Prime Minister expressed gratitude to the U.S. President but did not mention the Indian Prime Minister.
  • This omission could be linked to Netanyahu's domestic political challenges and his previous inattention to U.S. foreign policy goals.

The Path Ahead

  • Normalization of Saudi-Israel Relations: Saudi Arabia is open to ending its diplomatic boycott of Israel, but it comes with conditions.
  • Saudis expect Israel to commit to the two-state solution and the well-being of the Palestinian people, even if the occupation persists for some time.
  • Resolution of Israel-Palestine Conflict: Currently, on the sidelines of the UN General Assembly, Saudi Arabia, along with the Arab League and the EU, is collaborating with Egypt and Jordan to launch a 'Peace Day Effort.'
  • This initiative aims to encourage Israelis and Palestinian leaders to find compromises.
  • Achieving peace in the Israel-Palestine conflict is a formidable challenge, especially considering the rise of extremism on both sides.
  • Waiting for Progress: The realization of the India-Middle East-Europe Economic Corridor may need to await progress in the Israel-Palestine situation.

The IMEEC plan faces a significant hurdle with Israel's aspiration for normalized relations with Saudi Arabia, which Riyadh does not currently endorse. Despite not formally joining, the new IMEEC effectively brings Saudi Arabia into the fold. With time, the corridor could create the economic and psychological conditions necessary for normalization.

Mains Question:

  • Discuss the role of regional dynamics and international influences in the potential normalization of relations between Israel and Saudi Arabia, and how this could impact the progression of the India-Middle East-Europe Economic Corridor (IMEEC). (15M)

The NIA and its Authority Regarding Property Seizure (Indian Express)

  • 25 Sep 2023

Why is it in the News?

The National Investigation Agency (NIA) seized property, including land and a portion of a house owned by Gurpatwant Singh Pannu, the founder and attorney of the banned Sikhs for Justice based in the United States, in Amritsar and Chandigarh.

Why Was the National Investigation Agency Established?

  • In recent decades, India has faced significant acts of terrorism originating from beyond its borders.
  • Many of these attacks have intricate connections across states and international boundaries, possibly linked to activities like arms and drug smuggling, as well as the circulation of counterfeit Indian currency.
  • Recognizing these challenges, there arose a need to establish a central-level agency dedicated to investigating terrorism-related offenses and certain other acts with nationwide implications.
  • Various experts and committees, including the Administrative Reforms Commission in its report, had proposed the creation of such an agency.

About the National Investigation Agency:

  • The National Investigation Agency (NIA) came into existence with the enactment of the National Investigation Agency Act in 2008.
  • This Act empowers the NIA to:
  • Take proactive notice of terrorist activities anywhere in India and initiate investigations.
  • Enter any state without requiring permission from the state government.
  • Conduct investigations and make arrests.
  • The NIA is India's primary Central Counter-Terrorism Law Enforcement Agency.

Objectives:

  • Establish high standards of excellence in national-level counter-terrorism and other security-related investigations by developing a highly skilled, collaborative workforce.
  • Act as a deterrent to both existing and potential terrorist groups or individuals.Jurisdiction:
  • The provisions of the NIA Act apply throughout India and extend to Indian citizens residing outside the country.
  • Headquarters: New Delhi
  • Supervising Ministry: Ministry of Home Affairs

Roles of NIA:

  • Conducting thorough, expert investigations of scheduled offenses utilizing state-of-the-art forensic techniques, and establishing high investigative standards to guarantee the detection of all cases assigned to the NIA.
  • Facilitating efficient and prompt legal proceedings.
  • Fostering professional and cooperative interactions with the governments of States, Union Territories, and other law enforcement agencies, in accordance with the legal requirements of the NIA Act.
  • Providing assistance to all States and other investigative bodies in handling terrorist cases.
  • Establishing a comprehensive database containing all pertinent terrorist-related information and sharing this database with States and other relevant agencies.

Is the NIA Authorized to Carry Out Searches and Asset Seizures?

  • Under the Unlawful Activities (Prevention) Amendment Act (UAPA), enacted in 2019, NIA officers have the authority to conduct searches and confiscate properties suspected of being associated with terrorist activities.
  • NIA is not obligated to obtain permission from a state's Director General of Police.
  • The investigating officer only needs approval from the Director General of NIA.

What Changes Were Introduced by the NIA (Amendment) Act 2019?

  • Offenses Beyond Borders:
  • Initially, the NIA had jurisdiction over crimes solely within India.
  • However, the amended Act extends its authority to investigate crimes committed outside of India, provided it adheres to international treaties and the laws of the respective countries involved.
  • If the Central Government believes that a crime committed abroad falls within the Act's jurisdiction, it can direct the NIA to investigate it as if it occurred in India.

Expanded Scope of Legal Authority:

  • The NIA can investigate offenses listed in the Schedule of the NIA Act.
  • Originally, this Schedule included Acts such as The Atomic Energy Act, 1962, The Unlawful Activities (Prevention) Act, 1967, and The Anti-Hijacking Act, 1982, among others.
  • With the amendment, the NIA can now also probe cases related to:
  • Human Trafficking
  • Counterfeit currency or banknotes
  • Prohibited arms
  • Cyber-terrorism
  • Crimes under the Explosive Substances Act, 1908

Establishment of Special Courts:

  • The 2008 Act established Special Courts for the trial of cases under the Act.
  • The 2019 amendment grants the central government the authority to designate Sessions Courts as Special Courts for the trial of Scheduled Offenses under the Act.
  • Before doing so, the central government must consult with the Chief Justice of the relevant High Court.
  • In cases where multiple Special Courts exist in an area, the most senior judge will assign cases.
  • Additionally, state governments have the power to designate Sessions Courts as Special Courts to try scheduled offenses.

Non-performing Assets (NPAs) and Wilful Defaulters (Indian Express)

  • 23 Sep 2023

Why is it in News?

The Reserve Bank of India (RBI) has put forth a proposal that requires lenders to categorize a borrower as a "wilful defaulter" within six months of their account being declared a non-performing asset (NPA). Previously, the RBI did not have a specific timeframe for identifying such borrowers.

Context:

  • The RBI defines wilful defaulters as individuals or entities that have the means to repay a bank's dues but deliberately do not, or divert bank funds.
  • A "large defaulter" refers to someone with outstanding dues of Rs 1 crore or more, whose account has been categorized as doubtful or a loss.
  • A "wilful defaulter" is a borrower or guarantor who has committed wilful default, with an outstanding amount of Rs 25 lakh or more.

According to the RBI's draft guidelines:

  • Lenders must assess the "wilful default" aspect for all accounts with outstanding amounts of Rs 25 lakh and above or as per RBI notifications.
  • The process of classifying or declaring a borrower as a wilful defaulter should be completed within six months of the account becoming an NPA.
  • An Identification Committee, established by lenders, must scrutinize evidence of wilful default.
  • Lenders must investigate the wilful default aspect thoroughly before transferring the credit facility to other lenders or asset reconstruction companies (ARCs).

Other aspects of the RBI's draft guidelines include:

  • No additional credit facility should be extended by any lender to a wilful defaulter or any entity associated with them.
  • This prohibition on additional credit lasts for up to one year after the wilful defaulter's name is removed from the List of Wilful Defaulters (LWD) by the lenders.
  • Wilful defaulters are ineligible for credit facility restructuring.
  • These guideline revisions come after reviewing instructions and considering various judgments and orders from the Supreme Court and High Courts.

What is Non-Performing Assets (NPAs)?

  • Non-Performing Assets, often referred to as NPAs, represent loans or advances for which the principal or interest payments have remained overdue for a period of 90 days or more.
  • For banks, loans are considered assets because the interest they generate is a significant source of income.
  • However, when customers, whether individuals or corporations, are unable to make interest payments, these assets become "non-performing" for the bank as they cease to generate income.
  • Therefore, the RBI defines NPAs as assets that no longer generate income for banks. Banks are required to disclose their NPA figures to the public and report them to the RBI periodically.
  • Classification of Assets: According to RBI guidelines, banks must further categorize NPAs into three types:
  • Substandard assets: These are assets that have been NPAs for less than or equal to 12 months.
  • Doubtful assets: Assets that have remained in the substandard category for 12 months.
  • Loss assets: These are considered uncollectible and of such minimal value that keeping them as bankable assets is not justified, although some minimal recovery value may exist.
  • NPA Provisioning: Provisioning for a loan refers to setting aside a certain percentage of the loan amount as a reserve. The standard rate of provisioning in Indian banks ranges from 5-20%, depending on the business sector and the borrower's repayment capacity. However, in the case of NPAs, 100% provisioning is required in accordance with Basel-III norms.
  • GNPA and NNPA: Two key metrics help us understand a bank's NPA situation.
  • GNPA (Gross Non-Performing Assets) represents the total value of gross NPAs a bank has in a specific quarter or financial year.
  • NNPA (Net Non-Performing Assets) subtracts the provisions made by the bank from the gross NPA, providing the exact value of NPAs after specific provisions.
  • NPA Ratios: NPAs can also be expressed as percentages of total advances, indicating the proportion of advances that are not recoverable.
  • For instance:
  • GNPA ratio is the ratio of the total GNPA to the total advances.
  • NNPA ratio uses net NPA to calculate the ratio to the total advances.

Impact of NPAs and the Current Situation with Future Projections for India:

  • Effects of NPAs: Banks face a shortage of funds for lending to other productive sectors in the economy.
  • To maintain their profit margins, banks may need to raise interest rates.
  • Reduced investments could lead to an increase in unemployment rates.
  • Banks have the option to retain NPAs in their books with hopes of recovery, make provisions for them, or write off the loans entirely as bad debt.
  • Present State of NPAs in India: According to the latest RBI Financial Stability Report, the gross NPA ratio of scheduled commercial banks (SCBs) reached a 10-year low of 3.9% in March 2023.
  • Both gross and net NPA ratios have declined significantly from their peak levels of 11.5% and 6.1% in March 2018 to 3.9% and 1.0% in March 2023, respectively.
  • A contributing factor to the reduction in gross NPAs in 2022-23 was the substantial write-offs undertaken by banks.
  • Future Projection for India: Based on stress test results, it is anticipated that the GNPA ratio for all SCBs may improve to 3.6% by March 2024.
  • However, in the event of a deterioration in the macroeconomic environment, leading to medium or severe stress scenarios, the GNPA ratio could potentially rise to 4.1% and 5.1%, respectively.

Mains Question:

  • Evaluate the impact of rising NPAs on the Indian economy, including effects on bank lending, interest rates, and employment. Elucidate the current NPAs situation in India and discuss future projections in light of recent trends. (10M)

Enhancing the Benefits of Research for Basmati Rice in India (Indian Express)

  • 19 Sep 2023

Why is it in News?

Over the past three decades, the yearly exports of Basmati Rice have surged from 0.3-0.35 million tonnes (valued at $200-250 million) to 4.5-4.6 million tonnes, with a value of $4.7-4.8 billion.

Transforming the Rice Industry in India:

  • Until the late 1980s, Indian farmers cultivated traditional tall basmati rice varieties, which reached heights of 150-160 cm.
  • However, these tall plants were susceptible to lodging, bending over when laden with well-filled grains, and they produced a meager 10 quintals of paddy per acre over a lengthy period of 155-160 days, from nursery sowing to harvesting.
  • Some of these traditional varieties included Taraori (also known as Karnal Local or HBC-19) and Dehraduni (Type-3).
  • The turning point occurred when the Indian Agricultural Research Institute (IARI) introduced Pusa Basmati-1 (PB-1), an improved variety released in 1989.
  • By the early 21st century, India was exporting 0.6-0.7 million tonnes of basmati rice, generating annual revenues of $400-450 million, with PB-1 accounting for approximately 60% of this success.

Evolution of the Rice Sector in India:

  • The first significant change occurred with the introduction of Pusa Basmati-1 (PB-1), which led to a doubling of India's basmati exports.
  • However, the true transformation took place in 2003 when Pusa Basmati-1121 (PB-1121) was released.
  • PB-1121's standout feature was its grain quality: each kernel averaged 8 mm in length but elongated 2.7 times to approximately 21.5 mm when cooked.
  • One cup of milled PB-1121 grains yielded 4.5 cups of cooked rice, compared to 4 cups for PB-1 and 3.7 cups for Taraori.
  • Following the introduction of PB-1121, India's basmati rice exports surged from 0.7 million tonnes to 3.7 million tonnes and from $390 million to $4.9 billion in value terms between 2001-02 and 2013-14.
  • Another significant development occurred in 2013 when the IARI released Pusa Basmati-1509 (PB-1509).
  • PB-1509 had a shorter seed-to-grain duration of just 115-120 days, making it advantageous for farmers as they could cultivate an extra crop.
  • After harvesting PB-1509, farmers began adopting various crop combinations, including planting a three-month potato crop in early October, followed by sunflower, sweet corn, or onion in early January, all of which matured in 90-100 days.

Enhancing Disease Resistance in Basmati Rice:

  • In recent years, scientists at IARI have been dedicated to safeguarding the improved yield of their basmati varieties by introducing genes for disease resistance.
  • An example is PB-1121, which became vulnerable to bacterial leaf blight. To combat this, IARI introduced Pusa Basmati-1885 and Pusa Basmati-1847.
  • These varieties were essentially PB-1121 and PB-1509 but equipped with "built-in resistance" to both bacterial blight and rice blast fungal disease.
  • The incorporation of resistance traits through marker-assisted backcross breeding eliminates the need for farmers to use fungicides.
  • This reduction in the application of crop protection chemicals not only promotes sustainable farming but also preserves the premium reputation of Indian basmati in the global market.

Challenges Faced by Basmati Rice:

  • Basmati Rice encounters two primary challenges:
  • Lack of Minimum Support Price (MSP): Unlike other crops, basmati paddy does not have a minimum support price (MSP) established by the government, which can affect the income security of farmers.
  • Export Dependency: The majority of basmati rice is exported, with a limited domestic market. This export-centric nature exposes farmers to market fluctuations and government export policies.
  • For instance, the Union government recently imposed restrictions, disallowing basmati shipments priced below $1,200 per ton.

India's Rice Exports in 2023:

  • India holds the title of the world's largest rice exporter, commanding a substantial 45% share of the global rice market.
  • During April-May 2023, the nation's rice exports surged by 21.1% compared to the same period in the previous fiscal year.
  • In May 2023, the export of Basmati rice experienced a notable increase of 10.86% compared to its exports in May 2022.
  • Non-Basmati rice shipments have been consistently growing for the past three years, and the export of Basmati rice in 2022-2023 exceeded the figures of the previous year.
  • Government data up to August 17, 2023, reveals that total rice exports (excluding broken rice) reached 7.3 million tonnes, marking a 15% increase compared to the 6.3 million tonnes exported during the corresponding period last year.

India-Canada FTA Stalled (Indian Express)

  • 18 Sep 2023

Why is it in the News?

Negotiations for a bilateral free trade agreement between India and Canada have been temporarily halted. This decision followed Prime Minister Modi's concerns about anti-India activities by extremist groups in Canada, which he discussed with Canadian Prime Minister Justin Trudeau during the G20 Summit.

Context:

  • Negotiations on the Comprehensive Economic Partnership Agreement (CEPA) between India and Canada have been temporarily suspended due to political differences.
  • Talks are expected to resume once these issues are resolved.

Possible Reasons for the pause:

  • Strained Relations: The relationship between the two countries has become tense due to concerns related to pro-Khalistan groups operating in Canada.
  • Diplomatic Actions: In July, India summoned the Canadian envoy and issued a formal demarche after posters naming senior Indian diplomats in Canada surfaced.
  • Strong Response: Following a meeting between Prime Ministers Modi and Trudeau during the G20 Summit, India released a strongly-worded statement.

India-Canada Relations:

  • Diplomatic relations between India and Canada were formally established in 1947. However, the partnership took a significant step forward when it was elevated to a strategic level during Prime Minister Modi's visit to Canada in 2015.

Commercial Relations:

  • Bilateral Trade: The economic relationship between the two nations has witnessed substantial growth. India has become Canada's 10th largest trading partner.
  • Trade Figures: In the fiscal year 2022-23, India's total exports to Canada amounted to US$ 4.10 billion, showing an increase from US$ 3.76 billion in the previous year.
  • Simultaneously, India's imports from Canada reached US$ 4.05 billion in 2022-23, up from US$ 3.13 billion in 2021-22.
  • Key Exports and Imports: The bilateral trade consists of a range of items. India exports gems, pharmaceutical products, ready-made garments, among others.
  • In contrast, India imports commodities like pulses, newsprint, wood pulp, asbestos, potash, iron scrap, copper, minerals, and industrial chemicals from Canada.
  • Investment: Canadian Pension Funds have made cumulative investments of around US$ 55 billion in India.
  • Additionally, the cumulative Foreign Direct Investment (FDI) from Canada since the year 2000 amounts to approximately US$ 4.07 billion.
  • CEPA/EPTA Negotiations: In March 2022, both countries agreed to re-launch negotiations for the Comprehensive Economic Partnership Agreement (CEPA).
  • Furthermore, they explored the possibility of an interim agreement called the Early Progress Trade Agreement (EPTA), which could bring mutual commercial benefits.
  • Negotiations on CEPA and EPTA resumed in April 2022 and continued through nine rounds of talks until July of the same year.

Nuclear Cooperation:

  • Canada's nuclear aid to India began in 1956 and saw collaboration until 1974, when India conducted its nuclear test, Smiling Buddha.
  • Canada was among the earliest participants in India's nuclear power program, notably contributing to the construction of CIRUS, India's first research reactor.
  • The restoration of nuclear cooperation between the two countries occurred in June 2010 with the signing of a Nuclear Cooperation Agreement (NCA).

Science and Technology:

  • Bilateral collaboration extends to various sectors, including joint research projects in healthcare, agri-biotech, and waste management under the IC-IMPACTS program.
  • Furthermore, the Department of Earth Science and Polar Canada initiated a program for the exchange of knowledge and scientific research focused on Cold Climate (Arctic) Studies.

Cooperation in Space:

  • Notably, the commercial arm of the Indian Space Research Organization (ISRO), ANTRIX, has successfully launched several nanosatellites from Canada.
  • In a significant milestone, ISRO included Canada's first Low Earth Orbit (LEO) satellite on its 100th satellite PSLV launch in January 2018.

Development Cooperation:

  • After 55 years of bilateral programming in India with a total aid of $2.39 billion, Canada's bilateral development assistance program came to an end in 2006.
  • This change resulted from a shift in Indian government policy regarding aid.
  • Presently, Canada supports various projects in India through Grand Challenges Canada.
  • The main programming sector of the Partnerships for Development Innovation Branch focuses on maternal, newborn, and child health, including support for early childhood development.

Cooperation in Indo-Pacific:

  • In November 2022, Canada unveiled its Indo-Pacific strategy.
  • Although Canada is the last G7 nation to formally embrace the concept of the Indo-Pacific, its strategy emphasizes India's strategic importance.
  • The document highlights India as a key partner and calls for close collaboration with the country.

People-to-People Relation:

  • Canada is home to one of the largest Indian diasporas globally, numbering 1.6 million individuals (comprising Persons of Indian Origin - PIOs and Non-Resident Indians - NRIs), which constitutes more than 4% of its total population.
  • In the political arena, the present Canadian House of Commons, with a total strength of 338, includes 22 Members of Parliament of Indian origin.
  • Additionally, there has been an encouraging cultural exchange, symbolized by a commemorative Diwali stamp jointly issued by Canada Post and India Post in 2017.
  • Furthermore, Diwali celebrations on Parliament Hill have been a tradition for 18 years.

Challenges in India-Canada Relation:

  • Khalistani Groups: A significant challenge lies in Canada providing a safe haven for separatist Khalistani groups.
  • New Delhi has expressed concerns regarding the Liberal Party's alleged alignment with these groups for political support.
  • Some members of the Sikh diaspora, backed by pro-Khalistan groups, are politically active in Canada.
  • Anti-India Elements: Concerns have also arisen about Canada's perceived slow response to address anti-India elements operating on its soil.
  • Instances such as the vandalization of a Hindu temple near Toronto and the defacement of Indian symbols with anti-India graffiti have added to these concerns.
  • Diplomatic Tensions: Occasional diplomatic tensions have arisen due to issues such as Canadian comments regarding India's farmer protests and India's subsequent cancellation of diplomatic talks in response.
  • India-Canada relations are multifaceted, encompassing trade, investment, scientific collaboration, and more. However, they also face challenges related to certain groups and diplomatic issues."

Apple support for NavIC prompts consideration of mandatory adoption and extra incentives by the government. (Indian Express)

  • 16 Sep 2023

Why it is in News?

  • Following Apple's adoption of the NavIC navigation technology in select iPhone 15 models, the government is contemplating a mandate for all smartphones sold in India to incorporate this homegrown GPS alternative.
  • According to the Ministry of Electronics and Information Technology (MeitY), this requirement would apply to all 5G phones by January 1, 2025, and other phones by December 2025.

Context:

  • Currently, only a few smartphone brands like Poco, Vivo, and Xiaomi incorporate NavIC support.
  • To encourage wider adoption of this indigenous navigation system, the government is contemplating additional incentives for smartphone manufacturers.
  • These incentives may be included in the upcoming round of the production-linked incentive (PLI) scheme if manufacturers utilize chips designed or produced in India that support NavIC technology.
  • As an example, the existing IT hardware PLI offers cashback incentives to companies employing India-designed or -manufactured chips in their systems.
  • The Ministry of Electronics and Information Technology (MeitY) aims to make it nearly mandatory, similar to the automobile sector, for all GPS-enabled devices to include NavIC chipsets, alongside other technologies like GPS.
  • Apple's recent announcement of NavIC support in its latest iPhone models marks the company's first inclusion of this technology, potentially driving its mainstream acceptance.
  • The achievements of ISRO, including the successful lunar mission (Chandrayaan 3), the maiden solar mission (Aditya L1), and the growing recognition of NavIC technology, demonstrate India's expanding capabilities in the realm of space technology.

What is NavIC?

  • NavIC, also known as the Indian Regional Navigation Satellite System (IRNSS), is an independent and self-reliant navigation satellite system developed by the Indian Space Research Organisation (ISRO).
  • Initially approved in 2006 with a budget of $174 million, NavIC was anticipated to be completed by 2011 but became operational in 2018.
  • Comprising seven satellites, NavIC covers the entirety of India's landmass and extends up to 1,500 km beyond its borders.
  • Its primary objective is to reduce dependence on foreign navigation satellite systems, particularly for critical sectors.
  • Currently, NavIC is utilized in India for:
  • Public vehicle tracking, ensuring emergency alerts for fishermen in remote deep-sea areas with no terrestrial network connectivity.
  • Tracking and disseminating information related to natural disasters.
  • India's next goal is to integrate NavIC into smartphones, aligning with the draft satellite navigation policy of 2021, which outlines plans to expand coverage from regional to global.

What are the Benefits of a Regional Navigation System?

  • India is the sole country with its regional satellite-based navigation system.
  • Four global satellite navigation systems exist: the American GPS, Russian GLONASS, European Galileo, and Chinese Beidou.
  • Japan also has a four-satellite system similar to India's GAGAN (GPS Aided GEO Augmented Navigation) that can enhance GPS signals over its territory.
  • When fully operational, NavIC (supported by ground stations in Japan, France, and Russia for improved signal triangulation) will provide highly accurate open signals, up to 5 meters, and even more precise restricted signals (comparable to GPS's ~20 meters accuracy).
  • Unlike GPS, NavIC employs satellites in high geostationary orbits, ensuring they remain fixed relative to Earth and continuously cover the same Earth region.
  • NavIC signals approach India at a 90-degree angle, enhancing their reach to devices located in congested urban areas, dense forests, or mountainous terrain.

Comparison Between Old and New (2nd-Generation) NavIC Satellites:

  • The existing seven satellites in the IRNSS constellation were launched using the Polar Satellite Launch Vehicle (PSLV), which is ISRO's reliable launch rocket.
  • In 2018, the IRNSS-1I satellite joined the constellation, replacing an older, partially malfunctioning satellite. It was ISRO's ninth satellite for NavIC, although it's often considered the eighth due to the loss of IRNSS-1H in 2017 when the payload's heat shield failed to open on schedule.
  • The 2nd-generation satellite, NVS-01, launched in May 2023, belongs to ISRO's NVS series and is notably heavier.
  • NVS-01 features an onboard Rubidium atomic clock, a significant indigenous development for precise object location determination.
  • Currently, only four IRNSS satellites offer location services, while others are designated for messaging services.
  • The 2nd-generation satellites will introduce signals in a third frequency, L1 (in addition to the existing L5 and S frequencies), enhancing interoperability and supporting use in wearable devices.
  • These upgraded satellites will also boast a longer mission lifespan, exceeding 12 years, in contrast to the 10-year mission life of the existing satellites.

Mains Question:

  • How has the implementation of NavIC benefited India's navigation autonomy and strategic importance, and what are the key challenges and planned enhancements, particularly regarding mobile phone compatibility and signal security? (15M)

India's Supply Chain Opportunity (Indian Express)

  • 15 Sep 2023

Why it is in News?

Nevertheless, the declaration made during the G20 Leaders' Summit about the India-Middle East-Europe Economic Corridor (IMEC) has the capability to position India as a key player in the Asian segment of global supply chains. This holds substantial importance as part of endeavors to reduce reliance on supply chains centered around China.

What Are Supply Chains?

  • A supply chain encompasses all the stages involved in delivering a final product or service to the customer, starting from raw material producers.
  • It involves strategically locating various production stages (like design, production, assembly, marketing, and service activities) in a cost-effective manner.
  • Global supply chains have been the dominant model of industrial production since the 1980s, shaping the trajectory and character of globalization and regionalization.
  • These global supply chains are prevalent in a wide spectrum of industries, from simpler ones like textiles, food processing, and consumer goods to more intricate sectors such as automobiles, aircraft, machinery, electronics, and pharmaceuticals.

Why Are Global Supply Chains Shifting Away from China?

  • Presently, China plays a significant role in global value chains, contributing to nearly 20% of global manufacturing trade and a substantial share of key inputs required for production within global value chains.
  • Nevertheless, even before the Covid-19 pandemic, Western companies were progressively reducing their dependence on China as a sourcing market, and its appeal among Western buyers was waning.
  • This shift was driven, in part, by increasing labor costs and supply chain challenges within China, along with concerns among investors about tighter regulation of foreign businesses.
  • Additionally, the trade disputes between China and the US prompted multinational companies to reconsider their global sourcing strategies.
  • Certain segments of Chinese supply chains, especially those reliant on labor-intensive processes, were relocating to more cost-effective locations.
  • However, complete relocation from China is challenging due to the substantial costs associated with shifting supply chains, including establishing new facilities and recruiting and training workers, among other factors.

Why are India and Southeast Asia Considered Favorable Supply Chain Destinations?

  • Southeast Asia has been successful in luring foreign companies due to its combination of low labor costs, tax incentives, and enhanced logistical capabilities.
  • Notably, countries like Vietnam and Thailand have emerged as prominent choices for supply chain relocation.
  • India, however, is poised to become an accompanying manufacturing hub in Asia alongside China by leveraging foreign technology transfers and creating value-added employment opportunities. This is evident in various developments:
  • Increased production of iPhones within India.
  • Early-stage technology transfer for the technologically advanced Mercedes Benz EQS to India.
  • Foxconn Technology Group's establishment of a chip-making fabrication plant in Gujarat.
  • India's existing manufacturing sectors, including automobiles, pharmaceuticals, and electronics assembly, already possess sophistication and are likely to excel in this competition.
  • Foreign investors are drawn to India due to both geopolitical and economic considerations.
  • India's services sector, encompassing ICT, back-office functions, financial and professional services, as well as transport and logistics, is also positioned for success.

Initiatives Taken by India to Strengthen its Supply Chain Network:

  • Since 2022, the Indian government has prioritized preferential trade through various bilateral agreements with trading partners.
  • The UAE-India Comprehensive Economic Partnership Agreement became effective in May 2022.
  • Ongoing discussions aim to finalize the Australia-India free trade agreement (FTA) by the close of 2023. Negotiations are also underway for UK-India and EU-India FTAs.
  • The Indian Prime Minister's visit to Washington DC in June 2023 underscored the pivotal role of supply chains in India-United States relations.
  • These new agreements with Western trading partners signify a commitment to extensive economic integration, surpassing India's previous FTAs, which primarily focused on goods trade and related measures.

Path Ahead for India - Drawing Lessons from China's Success:

  • Encouraging foreign direct investment (FDI) with an export focus remains a key strategy for engaging in supply chains.
  • Local businesses must devise strategic approaches to integrate into global supply networks.
  • Large conglomerates can allocate resources and costs effectively among their business units.
  • Small and medium-sized enterprises (SMEs) can play pivotal roles as industrial suppliers and subcontractors for major exporters.
  • Strategic moves such as mergers, acquisitions, and collaborations with multinational corporations and prominent domestic enterprises are sensible steps.
  • Investing in domestic technological capabilities to meet international benchmarks for price, quality, and timeliness is crucial.
  • Identifying and targeting multinational corporations involved in industries where India holds a potential comparative advantage, coupled with improved coordination between central and state governments, is essential.
  • Investing in higher education in fields like science, technology, engineering, and mathematics is a forward-looking approach.
  • Caution should be exercised when contemplating the adoption of China's interventionist state model, as it carries significant risks of government failures.
  • Engaging with think tanks to gain insights into effective strategies is a prudent course of action.
  • India stands at a pivotal moment in history to foster industrialization in South Asia, which would enhance regional stability, create employment opportunities, and reduce susceptibility to Chinese influence.
  • To promote regional supply chains, the Indian government should consider the following policy actions:
  • Expanding the Make in India Programme into a broader Make in South Asia Programme.
  • Establishing a comprehensive bilateral Free Trade Agreement (FTA) with Bangladesh.
  • Enhancing the Indo-Sri Lanka FTA to bolster regional trade and investment based on established rules.
  • Without forging connections within South Asia, India's appeal to the Global South remains limited. The emerging supply chain opportunities with the United States offer India a promising pathway to embark on its journey of global integration, while maintaining a 'Neighbourhood First' approach.

Latest NSO Data on Inflation in India (The Hindu)

  • 14 Sep 2023

Why it is in News?

  • Recent data from the National Statistical Office (NSO) reveals that India's retail inflation rate decreased to 6.83% in August.
  • This decline came after hitting a 15-month high of 7.44% in July 2023, primarily because of falling prices of food items, particularly vegetables.
  • However, it's worth noting that the inflation rate still remains above the upper limit of the Reserve Bank of India's (RBI) medium-term inflation target range of 4+/-2%.

Key Points from the Recent NSO Data:

  • In August 2023, retail inflation stood at 6.83%, marking the fourth instance this year and the seventh since August 2022 where it exceeded the upper limit of the target.
  • Policymakers are increasingly concerned about high inflation rates.
  • In its recent monetary policy review, the RBI maintained the key repo rate at 6.50% but raised the inflation projection for FY2024 from 5.1% to 5.4%.
  • In the Index of Industrial Production (IIP), manufacturing showed improvement, rising to 141.2 in July from 135 a year ago and 141.1 in the previous month.
  • Of concern, consumer durables contracted by 2.7% year-on-year in July 2023, indicating weaknesses and imbalances in consumption demand.

Key Insights from the Recent NSO Data:

  • Consumer Confidence Declines: In August 2023, consumer sentiment dropped by 1.5%, breaking a streak of continuous increases since January 2023.
  • This decline can impact the Indian economy and businesses, particularly in anticipation of the upcoming festive season.
  • A significant contributor to this drop is a decrease in consumers' intentions to buy consumer durables like cars and TVs.
  • This pessimism is not only due to stagnant perceived incomes but also concerns about future earnings.
  • Persistent Inflation: According to RBI projections, inflation is expected to remain above 5% until the first quarter of 2024-25, with the likelihood of reaching 6.2% in the current quarter (July-September), which is beyond the RBI's comfort zone.
  • Although overall food inflation has moderated, certain food items like cereals, pulses, and milk are experiencing upward price momentum.
  • Factors such as irregular rainfall and low reservoir levels pose further risks to food inflation.
  • Additionally, the recent surge in global crude oil prices is a cause for concern. However, the continuing deflation in the Wholesale Price Index (WPI) will have a delayed impact on Consumer Price Index (CPI) inflation.
  • The government's decision to reduce cooking gas prices by Rs 200 per cylinder is expected to benefit domestic LPG consumers and those under the Pradhan Mantri Ujjwala Yojana (PMUY).
  • India's GDP Growth Prospects: India's potential GDP growth rate has steadily decreased from around 8% just before the Global Financial Crisis of 2008-09 to 6% before the Covid pandemic.
  • The potential GDP growth rate represents the rate at which an economy can expand without causing high inflation.
  • The temporary increase in India's GDP growth rates in 2020-21 was primarily due to a lower base.
  • The Indian economy faces various challenges, including a slowing global economy, elevated oil prices, and climate change. Economists estimate that, under a business-as-usual scenario, India's economy cannot grow more than 5% over the next decade.
  • While this growth rate may be attractive from a global perspective, it may not be sufficient to meet the employment needs of India's large youth population.

What is Inflation?

  • Inflation signifies an increase in prices, resulting in a decrease in the purchasing power of money over time.
  • The rate at which purchasing power diminishes is measured by tracking the average price increase of a specific set of goods and services over a specified period.
  • This price hike, typically expressed as a percentage, signifies that a unit of currency can purchase fewer goods and services compared to previous periods.
  • In contrast, deflation occurs when prices fall, leading to an increase in purchasing power.

What are the causes of inflation?

  • Demand-Pull Inflation: This occurs when the demand for goods and services exceeds their supply.
  • When demand is high and supply is limited, businesses often raise prices, leading to inflation.
  • It's often associated with strong economic growth.
  • Cost-Push Inflation: In this scenario, rising production costs, such as increased wages or the cost of raw materials, force businesses to raise prices to maintain their profit margins.
  • Oil price spikes are a classic example of cost-push inflation.
  • Built-In Inflation: Sometimes called wage-price inflation, this happens when workers consistently demand higher wages to keep up with rising prices.
  • Businesses then raise prices to cover increased labor costs, creating a cycle of inflation.

Categories:

  • Consumer Price Index (CPI): This index calculates the weighted average of prices for a basket of goods and services at the consumer or retail level.
  • Wholesale Price Index (WPI): The WPI monitors price changes for goods in stages before reaching the retail level.

Inflation Targeting in India:

  • The RBI Act of 1934 establishes a legal and institutional framework for ensuring price stability while also considering growth objectives.
  • In 2016, the Finance Act amended the RBI Act to establish a Monetary Policy Committee (MPC).
  • The MPC issues a bi-monthly Monetary Policy Report to set India's benchmark interest rate, enhancing transparency and accountability in the country's monetary policy.
  • The current mandate of the MPC is to maintain an annual inflation rate of 4% (with a tolerance range of +/-2%).
  • If inflation exceeds this range for three consecutive quarters, the committee is accountable to the Government of India.

Mains Question:

  • How does the RBI's inflation targeting framework impact India's economic stability and growth? Discuss the tools and effectiveness of RBI's strategies in controlling inflation. (10 M)

Ridding India of Food Insecurity (The Hindu)

  • 13 Sep 2023

Why it is in News?

  • While India is currently the world's fastest-growing major economy, it is also grappling with a rapid increase in food-price inflation.
  • The surge in food prices began to intensify notably in 2019 and has continued to rise in most subsequent years.
  • In July of this year, annual inflation surpassed 11%, reaching its highest level in the past decade.
  • One consequence of this sustained high food-price inflation is the possibility that a portion of the population may encounter difficulties in accessing food with sufficient nutritional value.

Key Findings of Concern:

  • The 'State of Food Security and Nutrition in the World' report by the Food and Agriculture Organization (FAO) assesses the percentage of people in different countries who cannot afford a nutritious diet.
  • Approximately 74% of the population is unable to afford a healthy diet.
  • This likely results in decreased food consumption due to reduced purchasing power.
  • Food prices in India have been on a consistent upward trend since 2019, with annual inflation exceeding 11% in July 2023, the highest rate in a decade.
  • There has been a notable increase in the prevalence of anaemia, with over 50% of adult women estimated to be affected according to the latest National Family Health Survey conducted between 2019 and 2021.
  • Critics argue that macroeconomic policies, including the Reserve Bank of India's focus on inflation control through measures like inflation targeting, are ineffective in addressing food inflation, which is primarily driven by supply-side factors.

Importance of Food Security:

  • Enhanced Health and Nutrition: Food security plays a crucial role in improving the health and well-being of individuals by preventing malnutrition and its associated health issues, including stunted growth, cognitive impairment, and increased susceptibility to diseases.
  • It's worth noting that malnutrition is responsible for the deaths of approximately 3.1 million children each year, accounting for nearly half of all child deaths under the age of 5.
  • Economic and Social Stability: Food security contributes to the economic and social stability of individuals and nations by enabling increased productivity, income generation, and participation in trade.
  • According to a World Bank study, the global cost of undernutrition, in terms of lost productivity and human capital, amounts to USD 3.5 trillion per year.
  • Additionally, a United Nations report highlighted that food insecurity played a pivotal role in 58% of conflicts between 2017 and 2019.
  • Poverty Alleviation: Food security is instrumental in reducing poverty as it enables people to afford and access nutritious food while also investing in other essential needs such as education and healthcare.
  • These factors help break the cycle of poverty.
  • National Security: Food security bolsters national security by ensuring a reliable food supply that is not vulnerable to external factors like global food prices or supply chain disruptions.
  • Food insecurity can make nations susceptible to such factors, compromising their sovereignty.
  • Sustainable Development: Food security aligns with sustainable development goals, particularly Goal 2: Zero Hunger.
  • It also supports related goals such as poverty reduction, improved health, gender equality, and environmental sustainability, contributing to a holistic approach to sustainable development.

Causes of Food Insecurity:

  • Impact of Russia-Ukraine Conflict: The Russia-Ukraine conflict has disrupted the global supply chain due to trade-related policies imposed by countries, exacerbating the global food crisis.
  • Several nations have implemented food trade restrictions to bolster domestic supply and reduce prices.
  • Rising Domestic Inflation: Many countries are grappling with domestic food inflation, which has intensified the issue of food insecurity.
  • For instance, India has imposed bans on wheat and rice exports to support its domestic population.
  • Climate Variability and Extremes: Climate change has significantly affected the availability and quality of critical resources like water, land, and biodiversity essential for food production.
  • It has also led to shifts in the patterns and severity of pests, diseases, and natural disasters, resulting in reduced crop yields and livestock productivity.
  • The Global Report on Food Crises highlights that weather and climate extremes were the primary drivers of acute food insecurity in 12 countries in 2021, impacting nearly 57 million people.
  • Economic Slowdowns and Downturns: Economic slowdowns have diminished the income and job prospects of vulnerable populations, who typically allocate a substantial portion of their income to food purchases.
  • These economic shocks have disrupted both the supply and demand for food, leading to increased food prices and reduced food quality.

Learning from the Green Revolution:

  • India boasts a rich historical backdrop of the Green Revolution, a transformative period during the 1960s.
  • The government initiated a supply-side approach, providing farmers with high-yield seeds, accessible credit, and guaranteed prices through procurement.
  • This initiative achieved remarkable success, swiftly liberating India from dependence on food imports and fulfilling its ambition of self-sufficiency.
  • However, certain strategic errors were made during this period.
  • Excessive use of chemical fertilizers resulted in soil degradation.
  • An overemphasis on procurement prices, rather than prioritizing productivity to enhance farm incomes, contributed to inflation.
  • The policy primarily focused on cereals, neglecting pulses, a vital source of protein for the majority of Indians.

The Path Ahead: Suggested Actions

  • Enhanced Agricultural Investment: Evaluate and optimize public expenditure on irrigation to improve its efficiency.
  • Revitalize Research Institutes: Revamp India's network of public agricultural research institutes to rekindle their pivotal role, reminiscent of their contributions during the 1960s.
  • Reinvigorate the Role of Local Village Representatives (Gram Sevak): Empower and elevate the role of the gram sevak in villages, making them instrumental in disseminating best agricultural practices.
  • Boost Protein-Based Crop Production: Implement a comprehensive program to significantly increase protein production by incorporating various initiatives.
  • Foster Cooperative Federalism: Encourage states to actively contribute to enhancing agricultural productivity rather than relying solely on food allocations from the central pool for their Public Distribution System.
  • Ensure Permanent Access to a Balanced Diet: Prioritize measures consistent with ecological sustainability to ensure that all Indians have continuous access to a nutritious diet.
  • Supply-Side Interventions: Implement interventions on the supply side to stabilize food prices by improving land yield.
  • Focus on Cost Reduction: Concentrate on the specific objective of reducing food production costs.
  • Multifaceted Approach: Extend irrigation coverage to 100% of the net sown area, eliminate land leasing restrictions, accelerate agricultural research efforts, and reinstate agricultural extension services.

Mains Question:

  • Examine the key agricultural issues in India today, encompassing food security, sustainability, and economic stability. Propose a holistic approach that integrates government funding, research, inter-state collaboration, and supply-side interventions to pave the way for a resilient and prosperous future in Indian agriculture. (15M)

Strategic Partnership Council (SPC) Meeting Between India & Saudi Arabia (Indian Express)

  • 12 Sep 2023

Why it is in News?

Saudi Arabia’s Crown Prince Mohammed bin Salman Al Saud and Prime Minister Narendra Modi held extensive talks on Monday, agreeing to expand trade and security ties. The leaders also co-chaired the first summit-level meeting of the India-Saudi Arabia Strategic Partnership Council (SPC).

What is India-Saudi Arabia Strategic Partnership Council (SPC)?

  • The agreement to create the SPC was inked during Prime Minister Modi's official visit to Saudi Arabia in October 2019. This partnership was conceived to establish a top-tier council to guide and enhance the Indo-Saudi relationship.
  • Key Pillars:
  • The SPC operates through two primary pillars:
  • Committee on Political, Security, Social, and Cultural Cooperation.
  • Committee on Economy and Investments.
  • These sub-committees engage at four distinct levels:
  • Summit Level (Involving the Prime Minister and Crown Prince)
  • Ministerial Level
  • Senior Officials' Meetings
  • Joint Working Groups (JWGs)

Key Highlights From the Recent Meeting Between Saudi's Crown Prince Mohammed bin Salman and PM Modi:

  • Notable Developments:
  • Advancing the $50-billion West Coast refinery project, a massive undertaking with a capacity of 60 million tonnes.
  • It will be a refinery and petrochemical complex situated on the Maharashtra coast.
  • Identifying energy, defense, semiconductors, and space as sectors where cooperation will be intensified.
  • Recognizing various other areas of collaboration, including security, education, technology, transportation, healthcare, tourism, and culture.
  • Expanding the Relationship:
  • Both parties agreed to transform their existing hydrocarbon relationship into a more comprehensive energy partnership.
  • Signed Agreements:
  • Additionally, eight agreements were formally signed to enhance cooperation in various domains, encompassing digitization and investment.

India-Saudi Arabia Bilateral Relations:

  • India and Saudi Arabia share warm and amicable bilateral relations that are a testament to their deep-rooted economic and socio-cultural connections spanning centuries.
  • These relations were formalized with the establishment of diplomatic ties in 1947, and since then, both nations have engaged in high-level exchanges and visits.

The Economic Cooperation Between India and Saudi Arabia:

Trade:

  • In the fiscal year 2022-23, the bilateral trade volume between India and Saudi Arabia surged to a historic high of $52.75 billion.
  • India's exports to Saudi Arabia saw significant growth, reaching $10.7 billion, compared to $8.8 billion in 2021-22.
  • India stands as the second-largest trading partner for Saudi Arabia, while Saudi Arabia ranks as the fourth-largest trading partner for India.

Investment:

  • Indian investments in the Kingdom of Saudi Arabia have now reached approximately USD 2 billion.
  • Saudi Arabia, on the other hand, is recognized as the 18th largest investor in India, with investments amounting to $3.14 billion as of March 2022.
  • During the visit of the Saudi Crown Prince to India in February 2019, he made a significant announcement of the Kingdom's plans to invest a substantial sum of US $100 billion across various sectors in India.

Energy Partnership Between India and Saudi Arabia:

Vital Energy Collaboration:

  • Energy collaboration stands as a foundational element of the bilateral relationship between India and Saudi Arabia, playing a crucial role in ensuring India's energy security.
  • Saudi Arabia maintains its position as one of India's key partners in the sourcing of crude oil and petroleum products.

Crucial Import Destination:

  • During the fiscal year 2022-23, Saudi Arabia retained its status as India's third-largest supplier of crude oil and petroleum products.
  • India imported a substantial 39.5 million metric tonnes (MMT) of crude oil from Saudi Arabia in FY23, constituting 16.7% of its total crude oil imports.

LPG Contribution:

  • India also benefitted from Saudi Arabia as a significant source of LPG (liquefied petroleum gas) imports, with 7.85 MMT of LPG imported from Saudi Arabia in FY23. This accounted for 11.2% of India's total petroleum product imports during that fiscal year.

Defense Partnership Between India and Saudi Arabia:

High-Level Engagement:

  • In a significant diplomatic move, General Manoj Mukund Naravane, the Chief of Naval Staff of India, paid a landmark visit to Saudi Arabia in December 2020.

Naval Exercises:

  • The two nations have successfully conducted two editions of their bilateral naval exercise titled 'Al Mohed al Hindi.'

Collaborative Defense Endeavors:

  • India and Saudi Arabia are actively engaged in fostering collaboration within the realm of defense industries and capacity building, further strengthening their partnership in the defense domain.

Indian Community Living in Saudi Arabia:

  • Prominent Expatriate Community:
  • The Indian community in Saudi Arabia is a substantial one, numbering around 2.2 million people.
  • This makes it the largest expatriate community within the Kingdom.
  • Economic Contribution:
  • Indians constitute approximately 7% of Saudi Arabia's total population, and they play a significant role in driving the country's economic growth.
  • Migration Process Enhancement:
  • During Prime Minister Modi's visit to Riyadh in October 2019, a noteworthy development was announced. India's e-Migrate system would be integrated with Saudi Arabia's e-Thawtheeq system, streamlining the migration process for workers.
  • Hajj Pilgrimage:
  • The annual Hajj pilgrimage holds immense importance in the Indo-Saudi bilateral relationship.
  • During the visit of the Saudi Crown Prince to New Delhi in February 2019, it was revealed that India's Hajj quota would be expanded by 24,975 in 2019, allowing 200,000 Indians to partake in the Hajj pilgrimage in August 2019.

Recent Diplomatic Engagements:

  • In 2019, the then Indian Prime Minister, Manmohan Singh, undertook a significant visit to Saudi Arabia, culminating in the signing of the 'Riyadh Declaration.'
  • This landmark agreement elevated the bilateral relationship between the two nations to the status of a 'Strategic Partnership.'
  • During Prime Minister Modi's visit to Saudi Arabia in 2016, King Salman bestowed upon him the Kingdom's highest civilian honor.
  • In February 2019, Crown Prince Salman of Saudi Arabia visited India and announced the Kingdom's decision to invest approximately US$100 billion in India.

Later in the same year, during Prime Minister Modi's visit to Riyadh, the two nations signed the Strategic Partnership Council (SPC) Agreement, marking a pivotal moment in their diplomatic relations.

African Union Joined G20 (G20 Becomes G21) (The Hindu)

  • 11 Sep 2023

Why it is in News?

At the 18th G20 Summit in India, the African Union (AU) became a new member of the G20, just three months after India proposed the idea of their inclusion.

Context:

  • In June of this year, Prime Minister Modi suggested to G20 leaders that the African Union should be granted full membership at the upcoming G20 Summit in Delhi.
  • This idea was born after the 'Voice of the Global South' Summit in January 2023, which saw participation from most of the African Union's 55 member countries.
  • Up to that point, only one country from the African Union, South Africa, was a part of the G20.
  • Several African leaders had emphasized that Europe had representation from five countries and the European Union (EU) within the G20, and they believed the African Union deserved similar representation.

What is the African Union (AU)?

  • The African Union (AU) is a group of 55 member states representing the countries of the African Continent.
  • In essence, it's a union that has various objectives aimed at enhancing the well-being of its member countries, both on their own and as a collective.
  • It was formally established in 2002, succeeding the Organisation of African Unity (OAU, 1963-1999).
  • The AU's main offices are located in Addis Ababa, Ethiopia.

Vision of the African Union (AU):

  • The AU is driven by its vision of "A united, prosperous, and peaceful Africa, led by its own people and serving as a dynamic force on the global stage."
  • To accomplish this mission, a target year of 2063 has been established, marking the 100th anniversary of the OAU's establishment.
  • Agenda 2063's key objectives include:
  • Fostering prosperity in Africa through inclusive growth and sustainable development.
  • Achieving a politically unified and integrated continent, inspired by the principles of Pan-Africanism.
  • Cultivating a Africa characterized by good governance, democracy, human rights, justice, and the rule of law.
  • To realize the aims outlined in Agenda 2063, the AU has devised a series of five 10-year plans, with the initial plan spanning from 2014 to 2023.

Objectives of the African Union (AU):

  • The AU dedicates its efforts and resources to fostering stronger unity and solidarity among African nations and their citizens.
  • Its goal is to expedite the political and socio-economic integration of the continent, addressing the diverse social, economic, and political challenges faced by African nations.
  • Additionally, the AU actively works to promote peace, stability, and security throughout the region.

The Role of the AU in Promoting Peace on the Continent:

  • The AU strongly believes that resolving conflicts is essential for achieving prosperity.
  • In pursuit of this goal, it established a Peace and Security Council in 2004.
  • This council has the authority to intervene in conflicts, replacing the principle of non-interference with one of non-indifference.
  • It can deploy military forces in situations involving genocide and crimes against humanity and can authorize peacekeeping missions.
  • The AU also oversees the New Partnership for Africa's Development (Nepad), an anti-poverty plan that offers a partnership with the West.
  • It promotes good political and economic practices in exchange for increased aid and investment.
  • Many of the AU's peacekeeping missions have been instrumental in helping governments combat terrorism across Africa, from the Sahel to northern Mozambique.
  • Diplomatic efforts by the AU have also successfully resolved conflicts in Africa, such as brokering a peace deal between the Ethiopian Government and the Tigray People's Liberation Front (TPLF) in South Africa in 2022.
  • Another notable achievement is the establishment of the African Continental Free Trade Area (AfCFTA), which became operational in 2021.
  • With 54 member countries as signatories, AfCFTA is the world's largest new free trade area since the creation of the WTO in 1994.
  • Its aim is to boost intra-African trade by implementing deeper trade liberalization and improved regulatory harmonization.
  • The AfCFTA is projected to increase Africa's income by $450 billion by 2035 and elevate intra-African exports by more than 81%.

Limitations of the African Union (AU):

  • The AU has faced challenges in preventing coups in Africa, with over 200 coups occurring on the continent since the 1960s. Some of the most recent ones happened in Gabon and Niger.
  • Another issue is the AU's struggle to ensure that its member nations fulfill their annual financial obligations.
  • This has led to financial constraints, forcing the organization to rely on external funding, which can affect its independence.

Swachh Vayu Sarvekshan 2023 (Indian Express)

  • 09 Sep 2023

Why in the News?

The second year of the Swachh Vayu Survekshan, carried out by the ministry based on self-assessments submitted by 130 identified cities under the National Clean Air Programme, saw Agra in Uttar Pradesh securing the second rank, followed by Thane in Maharashtra on the third spot.

About Swachh Vayu Sarvekshan:

  • In September 2022, the Union Ministry of Environment, Forest, and Climate Change published rules for 'Swachh Vayu Sarvekshan - Ranking of Cities' as part of the National Clean Air Programme (NCAP).
  • The idea behind Swachh Vayu Sarvekshan is to rank 131 cities in India based on how well they follow City Action Plans from NCAP.
  • These plans are meant to reduce air pollution by up to 40% by 2025-26.

How Swachh Vayu Sarvekshan works?

  • The Swachh Vayu Sarvekshan methodology categorizes 131 cities into three groups based on population:
  • The first group includes 47 cities with a population exceeding 10 lakhs.
  • The second group comprises 44 cities with a population ranging from 3 to 10 lakhs.
  • The third group consists of 40 cities with a population less than 3 lakhs.
  • Cities are required to perform self-assessments using the framework available on the PRANA online portal, which stands for "Portal for Regulation of Air-pollution in Non-Attainment Cities."
  • The assessment focuses on key components, including solid waste management, road dust control, management of construction and demolition waste, and the control of emissions from vehicles and industries.
  • Cash awards will be given to the top three performing cities in each group, fostering a spirit of competitive federalism.
  • This Sarvekshan serves as a valuable tool for cities to plan and execute actions aimed at improving air quality.
  • It's important to note that this ranking is not based on direct measurements of air quality parameters but on the proactive measures taken by cities to enhance air quality across various domains.

About Swachh Vayu Sarvekshan 2023:

  • The Union Environment, Forest and Climate Change Minister, Bhupender Yadav, recently announced awards for the Swachh Vayu Sarvekshan 2023, which is a survey aimed at assessing clean air.
  • In the first category, which includes cities with a population of more than 10 lakhs, Indore secured the top spot, followed by Agra and Thane.
  • Indore achieved the highest score of 187 out of 200.
  • In the second category, which covers cities with populations between 3-10 lakhs, Amravati took the first position, with Moradabad and Guntur following closely.
  • Similarly, in the third category, which comprises cities with populations less than 3 lakhs, Parwanoo (Himachal Pradesh) secured the first rank, with Kala Amb (Himachal Pradesh) and Angul (Odisha) in the second and third positions, respectively.
  • The assessment considered eight categories, including biomass and municipal solid waste burning, road dust, dust from construction and demolition waste, vehicular emissions, emissions from industries, other emissions, IEC activities (public awareness), and improvement in PM10 concentrations.
  • Urban local bodies submitted self-assessment reports with supporting documents to determine the rankings.
  • Notably, in the 2022 survey, Lucknow, Prayagraj, and Varanasi were the top three cities in the million-plus population category, but they ranked lower in the current year's survey.

What is National Clean Air Programme?

  • The National Clean Air Programme (NCAP), initiated in 2019, stands as India's primary initiative to improve air quality significantly.
  • This program was introduced as a comprehensive, time-bound, national-level strategy aimed at addressing the widespread issue of air pollution throughout the country.
  • The primary objective is to achieve a reduction of 20% to 30% in Particulate Matter concentrations by 2024, with 2017 serving as the baseline year.
  • NCAP has identified 132 non-attainment cities nationwide. These cities have consistently failed to meet the National Ambient Air Quality Standards (NAAQS) for over five years.
  • The Ministry of Environment, Forest, and Climate Change serves as the nodal ministry responsible for overseeing NCAP's implementation.

Measurement of Unemployment in India? (The Hindu)

  • 08 Sep 2023

Why in the News?

  • Based on the Periodic Labour Force Survey (PLFS), India's unemployment rate reached a peak of 6.1% in 2017, which was the highest ever recorded.
  • However, the latest PLFS data from 2021-22 indicates a decrease to 4.1% in unemployment.
  • This article underscores the challenges in accurately measuring unemployment in India.
  • While there has been a reduction in unemployment from 2017 to 2022, it is still higher than the rates observed in some developed economies, such as the United States, where it hovers around 3.5%.

What is the Meaning of Unemployment:

  • As per the International Labour Organisation (ILO), unemployment involves being without a job, being ready to accept a job, and actively seeking employment.
  • In other words, if someone loses their job but doesn't actively seek another, they are not considered unemployed. Hence, unemployment is distinct from being without a job.

Measuring the Unemployment Rate:

  • The unemployment rate is calculated by dividing the number of unemployed individuals by the total labor force.
  • The labor force is the combined count of both employed and unemployed individuals.
  • People who are neither employed nor unemployed, like students and those involved in unpaid domestic work, are categorized as outside the labor force.
  • It's important to note that the unemployment rate may also decrease when an economy doesn't create sufficient jobs or when individuals choose not to actively seek employment.

Challenges in Measuring Unemployment in India:

  • Cultural Factors: Social norms and cultural constraints influence job search decisions in developing economies like India.
  • A definition of unemployment that relies on active job seeking may underestimate the true situation.
  • Informal Work: In contrast to developed economies, individuals in India often hold informal, intermittent jobs.
  • This means someone might be unemployed one week but engaged in various roles over time, such as casual labor or farming.
  • Varying Methodologies: Different organizations use distinct methodologies to measure unemployment.
  • For instance, the Centre for Monitoring Indian Economy categorizes individuals based on their daily activity preceding the interview, leading to variations in unemployment rates and labor force participation rates.
  • Data Timing: Timing can also impact unemployment rates.
  • For example, the lockdown in March 2020 had a profound effect on the Indian economy, but this disruption was not immediately reflected in the PLFS unemployment rates, which cover a period from July of one year to June of the next.
  • Trade-offs: Developing economies face trade-offs in choosing reference periods for data collection.
  • Shorter periods yield higher unemployment rates and lower employment rates, while longer periods tend to show the opposite.
  • This dilemma is less common in developed nations with more consistent, year-round employment.

Differences in Rural and Urban Unemployment Rates in India:

  • The lenient criteria for categorizing someone as employed contribute to the lower unemployment rates in rural regions compared to urban areas.
  • Agricultural economies provide individuals with opportunities like family farming or occasional agricultural work, increasing the likelihood of finding some form of employment in rural settings.
  • While these definitions may seem to 'underestimate' unemployment, they were primarily crafted to account for the substantial informal economy prevalent in these areas.

Classifying Employment Status in India:

  • The National Sample Survey Organisation (NSSO) employs two primary methods for this purpose: Usual Principal and Subsidiary Status (UPSS) and Current Weekly Status (CWS).
  • UPSS determines an individual's primary employment status based on their predominant activity during the previous year, whether employed, unemployed, or out of the labor force.
  • For instance, even if someone's principal status is not that of a worker, they would still be considered employed under UPSS if they engaged in economic activity in a subsidiary role for a period of not less than 30 days.
  • CWS, on the other hand, uses a shorter reference period of one week. An individual is counted as employed if they worked for at least one hour on at least one day during the seven days leading up to the survey date.
  • UPSS unemployment rates consistently tend to be lower than CWS rates because it is more likely that individuals will find employment over the course of a year compared to just one week.

Unemployment is becoming a significant issue in the upcoming election. To address it effectively, it's crucial to grasp how unemployment is defined and measured in a developing economy like India.

Mains Question:

  • Discuss the challenges associated with measuring unemployment in India and how these measurement methods impact our understanding of the employment situation in the country. (15M)

SBI allows interoperability of UPI and Central Bank Digital Currency (CBDC) (The Economic Times)

  • 06 Sep 2023

Why in the News?

The State Bank of India has announced the implementation of UPI interoperability in its Digital Rupee (eRupee) also called Central Bank Digital Currency (CBDC).

Context:

  • Banks are making it possible for Unified Payments Interface's (UPI) Quick Response (QR) codes to work seamlessly with their central bank digital currency (CBDC) or e? applications.
  • Interoperability means that the payment system can function smoothly alongside other payment systems.
  • It enables system providers and participants from different systems to conduct, process, and settle payment transactions across systems without the need for involvement in multiple systems.
  • As a result of this interoperability, users of the retail digital rupee will be able to make transactions by scanning any UPI QR code at a merchant's establishment.
  • Additionally, merchants can now accept digital rupee payments through their existing UPI QR codes.
  • This integration of UPI and CBDC is part of the Reserve Bank of India's (RBI) ongoing pilot project to promote the adoption of the retail digital rupee (e?-R).

What does UPI QR code-CBDC interoperability mean?

  • Interoperability between UPI and the digital rupee ensures that all UPI QR codes can now be used seamlessly with CBDC apps.
  • Initially, during the launch of the pilot for the retail digital rupee, e?-R users were required to scan a specific QR code for their transactions.
  • However, thanks to the interoperability of these systems, payments can now be initiated using a single QR code.
  • In this setup, the e? is stored in a digital wallet, which is connected to the customer's existing savings bank account, while UPI is directly linked to the customer's account for payments.

How will interoperability contribute to increased CBDC adoption?

  • Interoperability between CBDC and UPI is poised to drive the adoption of the digital rupee, especially considering UPI's widespread use.
  • Currently, UPI is a highly popular payment method, with more than 70 mobile apps and over 50 million merchants accepting UPI payments.
  • In July, the RBI Deputy Governor reported that there were 1.3 million customers and 0.3 million merchants using the retail digital rupee.
  • However, the daily e?-R transactions in July ranged from 5,000 to 10,000, indicating room for growth.
  • The seamless integration of CBDC with UPI is expected to boost the acceptance and utilization of digital currencies in everyday transactions.

How will this benefit customers and merchants?

  • The UPI and CBDC interoperability will streamline transactions for both customers and merchants, eliminating the need to switch between multiple digital platforms.
  • Digital rupee users can now effortlessly make payments for everyday essentials like groceries and medications by scanning any UPI QR code at any merchant's store.
  • Merchants will no longer need a separate QR code to accept digital rupee payments; they can seamlessly receive CBDC payments through their existing QR code setup.
  • If the merchant has a CBDC account, the payment will be settled in their CBDC wallet. For merchants without a CBDC account, there will be an option to process payments using UPI.

What is a QR code?

  • A QR code, short for Quick Response code, is a pattern of black squares arranged in a square grid against a white background, designed to be read by imaging devices like cameras.
  • These codes contain information related to the item they are associated with. QR codes serve as a convenient and contactless method for various purposes, including enabling businesses to receive payments directly into their bank accounts from customers.

What is Central Bank Digital Currency (CBDC)?

  • CBDC stands for Central Bank Digital Currency, which is a digital form of legal tender issued by a central bank.
  • In the case of India, the Reserve Bank of India has introduced the digital rupee, known as e-Rupee.
  • This digital currency holds the same value as traditional fiat currency and can be exchanged on a one-to-one basis.
  • The primary distinction is its digital format.
  • The launch of the digital rupee is divided into two main categories: general purpose (retail) and wholesale.
  • This categorization is based on how the digital rupee is used and its accessibility levels.
  • Starting from November 1, 2022, the RBI initiated its first pilot project for the use of the digital rupee in the wholesale market, specifically for secondary trade in government securities (G-secs).
  • Wholesale CBDC has the potential to enhance the efficiency and security of settlement systems for financial transactions conducted by banks, particularly in the government securities segment, inter-bank market, and capital market.
  • This transformation is achieved by reducing operational costs, improving collateral usage, and enhancing liquidity management.
  • Subsequently, from December 1, 2022, the pilot for the retail digital rupee (e-R) was launched.
  • Essentially, the retail e-rupee serves as an electronic substitute for physical cash and is primarily intended for everyday retail transactions.
  • It is accessible to all, including the private sector, non-financial consumers, and businesses.
  • Distribution of the retail digital rupee will be facilitated through intermediaries, such as banks.
  • It does not accrue any interest and can be converted into other forms of money, such as bank deposits.

Mains Question:

  • Discuss the potential advantages and disadvantages of implementing a Central Bank Digital Currency (CBDC) like the digital rupee (e-R) in India, and elucidate its possible implications on the broader financial ecosystem? (10M)

Chandrayaan-3 | Vikram Hops on the Moon and Lands Safely (The Hindu)

  • 05 Sep 2023

Why in the News?

Surpassing its intended mission goals, the Chandrayaan-3 mission's lander, Vikram, has reached a noteworthy milestone by successfully conducting a hop experiment.

Context:

  • The Indian Space Research Organisation (ISRO) announced on Tuesday that the lander completed a successful hop experiment.
  • Upon receiving the command, it activated its engines, lifting itself by approximately 40 cm as planned and made a safe landing within a range of 30–40 cm.
  • This achievement in the hop experiment is of significant importance for upcoming missions, especially those aimed at retrieving lunar samples and future human expeditions to the moon. The lander module, which carried the rover Pragyan, had previously executed a successful soft landing on August 23. Following that, Pragyan was carefully deployed onto the lunar surface.

What is Hop Test?

  • In the context of space exploratiom a "hop test" is typically refers to an experiment where a spacecraft's lander or rover briefly lifts off or hops above the surface of a celestial body, such as the moon or Mars, before landing back safely.
  • This test is conducted to demonstrate the spacecraft's ability to perform controlled vertical takeoffs and landings.
  • In lunar missions, for example, a hop test is crucial for various reasons:
  • Mobility: Hopping allows the lander or rover to move to a different location on the lunar surface, providing it with increased mobility and access to a wider range of scientific targets.
  • Avoiding Obstacles: Hopping can help the spacecraft avoid obstacles or hazards on the surface, such as large rocks or rough terrain.
  • Positioning: Hopping can reposition the spacecraft's instruments or cameras for better observations.
  • The successful execution of a hop test demonstrates the spacecraft's precision in controlling its engines, which is crucial for safe landings, mobility, and conducting experiments on celestial bodies with low or no atmosphere.

Post Hop Experiment Updates:

  • ISRO reported that the spacecraft and its onboard instruments remained in excellent working condition after the successful 'hop.'
  • Instruments such as the deployed ramp, ChaSTE, and ILSA were folded back and redeployed without any issues following the experiment.
  • Subsequently, the payloads onboard the lander were deactivated in anticipation of the approaching lunar night.
  • The solar-powered instruments were not designed to endure the extremely frigid temperatures of the lunar night, which can plummet to below -120 degrees Celsius.
  • Therefore, the instruments on the rover were placed in a sleep mode a few days ahead of the start of the lunar night, which lasts for 14 Earth days.
  • If the battery retains some charge during this period, the instruments can be reactivated when sunlight becomes available once more.
  • Additionally, the ISRO Chairman announced plans to extend the mission life of both the lander and rover shortly after the launch of the Aditya-L1 mission.
  • Originally, the mission life for both the lander and rover was set at just one lunar day, equivalent to 14 Earth days.

Why is the Hop Test Significant?

  • Even though ISRO has not officially disclosed subsequent lunar missions, scientists believe that a sample return mission is a logical progression after Chandrayaan-3.
  • In fact, had Chandrayaan-2 succeeded in 2019, Chandrayaan-3 would have been designed as a sample return mission.
  • A human lander mission is also anticipated in the future.
  • China's Chang'e lunar program has followed a similar trajectory, starting with an orbiter in 2007 and advancing to a lander and sample return mission (most recently in 2020).
  • Therefore, the hop test holds critical importance for upcoming lunar missions. In missions involving sample return or human landings, the lander must take off from the lunar surface and return to Earth, necessitating much higher thrust.
  • Nevertheless, as a technology demonstration, the 'hop experiment' remains a noteworthy achievement within the Chandrayaan-3 mission.
  • The successful hop experiment also showcases India's prowess in space exploration, which could potentially attract international investments to the country's space endeavors.

Production Linked Incentive (PLI) Scheme for IT Hardware (Business Standard)

  • 01 Sep 2023

Why in the News?

As many as 38 companies, including big names like Foxconn Group, HP, Dell and Lenovo, have applied for incentives under the mega Production Linked Incentive (PLI) IT hardware scheme for manufacturing laptops, PCs and servers.

Context:

  • In addition to Asus, Dell, HP, and Foxconn, several other companies, including Lenovo, Acer, and Flex, have submitted applications for the scheme. Notably, Flex is reportedly involved in manufacturing Reliance's JioBook laptop.
  • HP Enterprises (HPE) has also sought approval for server manufacturing operations within India.
  • Although the expected incremental production over the scheme's six-year duration is projected to reach Rs 3.35 lakh crore, the anticipated additional investment during this period is relatively modest, at just Rs 4,000 crore.
  • The government anticipates that the manufacturing activities enabled by the scheme will create approximately 75,000 direct jobs, with the potential to generate up to 2 lakh indirect jobs when considering the broader economic impact.

What is the PLI Scheme?

  • The PLI scheme was created to boost domestic manufacturing, reduce reliance on imports, and create more jobs.
  • The government has allocated Rs 1.97 lakh crore for various sectors under the PLI schemes, with an additional Rs 19,500 crore designated for PLI in solar PV modules in the 2022-23 Budget.
  • Initiated in March 2020, the scheme initially focused on three industries:
  • Mobile and allied Component Manufacturing
  • Electrical Component Manufacturing
  • Medical Devices
  • Incentives Under the Scheme:
  • The incentives, based on increased sales, vary from 1% for electronics and technology products to 20% for critical key starting drugs and certain drug intermediaries.
  • In some sectors like advanced chemistry cell batteries, textile products, and the drone industry, incentives are calculated based on sales, performance, and local value addition over a five-year period.
  • Sectors Covered by the PLI Scheme:
  • The government has introduced PLI schemes for 14 sectors, including automobiles and auto components, electronics and IT hardware, telecom, pharmaceuticals, solar modules, metals and mining, textiles and apparel, white goods, drones, and advanced chemistry cell batteries.
  • Objectives:
  • The government introduced this scheme to reduce India's dependence on foreign countries, particularly China.
  • It aims to support labor-intensive sectors and increase employment in India while reducing import bills and promoting domestic production.
  • The PLI Yojana also encourages foreign companies to establish operations in India and domestic enterprises to expand their production facilities.

What is the PLI scheme for IT Hardware?

  • The PLI scheme for IT Hardware was initially announced in February 2021, with an initial allocation of approximately Rs 7,300 crore over a four-year period.
  • Incentive Structure:
  • Under this scheme, domestic companies that invest Rs 20 crore and achieve sales of Rs 50 crore in the first year, Rs 100 crore in the second year, Rs 200 crore in the third year, and Rs 300 crore in the final year can receive incentives ranging from 1% to 4% on incremental sales compared to the base year of 2019-20.
  • Revised Version:
  • The initial version of the scheme had limited success, with only two companies, Dell and Bhagwati, meeting the first-year targets.
  • Consequently, the industry called for a revamped scheme with a larger budget.
  • In response, the Union Cabinet approved a revised PLI scheme for IT hardware in May 2023, allocating Rs 17,000 crore, more than doubling the budget.
  • Potential Impact:
  • PLI 2.0 has the potential to attract major global IT hardware manufacturers to establish their production operations in India, bolstering the local production of laptops, servers, personal computers, and more.
  • Over a six-year period, the average incentive is expected to be around 5%, compared to the previous 2% over four years.
  • Achieving Digital Economy Goals:
  • With the IT hardware industry aiming for a production value of $24 billion by 2025-26 (with exports estimated at $12-17 billion), this scheme plays a crucial role in realizing the goal of a $1 trillion digital economy, including $300 billion from electronics manufacturing by 2025-26.

How Will the PLI Scheme Drive Local Production in India?

  • Despite identifying electronics manufacturing as a pivotal sector for future economic growth, India has witnessed a surge in the import of electronic goods in recent years.
  • Import Scenario:
  • For instance, the import of electronic goods surged to $6.96 billion during April-June this year, up from $4.73 billion in the same period last year, constituting 4-7% of overall imports.
  • The category with the highest import share includes personal computers, including laptops and palmtops.
  • China Dominance:
  • China commands a significant portion, approximately 70-80%, of India's imports in the personal computer and laptop category.
  • Incentives for Component Manufacturers:
  • Companies engaged in local manufacturing of specific components like memory modules and display panels will receive supplementary incentives under the revised scheme.
  • Performance-Driven Approach:
  • The PLI scheme is designed to encourage companies to meet production targets.
  • If companies fall short of these thresholds, they may face deductions of up to 10% from their subsidies.
  • Synergy with Semiconductor Scheme:
  • The PLI scheme will complement the government's semiconductor scheme, with domestically produced chips finding application in laptop manufacturing, further bolstering the local industry.

Mains Question:

  • Discuss the impact of the PLI Scheme for IT Hardware on the Indian electronics manufacturing sector. Evaluate its effectiveness in reducing imports and critically assess its potential to stimulate job growth in the country. (15M)

Curbs on Rice Exports (The Hindu)

  • 31 Aug 2023

Why in the News?

In a move to check domestic rice prices and ensure domestic food security, the Indian government has prohibited the export of white rice, levied a 20% export duty on par-boiled rice till October 15, and permitted the export of Basmati rice for contracts with value of $1,200 a tonne or above.

India's Rice Exports:

  • India is the biggest rice seller in the whole world, making up 45% of the global rice market.
  • In the months of April and May in 2023, the amount of rice sent out of the country was 21.1% more compared to the same time in the previous financial year.
  • Just in May, the export of Basmati rice was 10.86% higher than how much was exported in May of 2022.
  • The amount of non-Basmati rice being shipped out has been increasing for three years, and in the year 2022-2023, more Basmati rice was exported than the year before.
  • According to the information the government provided, until August 17 this year, the total rice exports (not including broken rice) were 15% more, reaching 7.3 million tonnes.
  • This is compared to 6.3 million tonnes during the same time last year.
  • Thailand thinks it will produce almost 25% less rice in 2023-2024; Myanmar has stopped sending out raw rice; and it seems like there might be less rice available in Iraq and Iran too.

Rice Production in Current Season:

  • The Department of Agriculture and Farmers Welfare has reported that during the Rabi season of 2022-2023, the amount of rice produced was 13.8% lower, reaching 158.95 lakh tonnes.
  • This is compared to 184.71 lakh tonnes in the Rabi season of 2021-2022.
  • For the Kharif season, the data about planting shows that rice has been planted on 384.05 lakh hectares this year as of August 25.
  • This is more compared to 367.83 lakh hectares during the same time last year.
  • People in the trading and rice milling business are saying that the new season's rice will start arriving after the first week of September.
  • They also mentioned that the effects of El Nino might have some impact on how much rice arrives.
  • Rice prices were ?27 per kilogram at this time last year, but now they've gone up to ?33 per kilogram.

Challenges in India’s Rice Export Strategy:

  • India managed to export a record-breaking 21 million metric tonnes (MMT) of rice in the fiscal year 2021-22 (FY22), which made up around 41 percent of the global exports in a market of about 51.3 MMT.
  • Exporting such large amounts of rice led to a drop in global rice prices by approximately 23 percent in March (compared to the previous year), while other cereal prices like wheat and maize were increasing significantly in the global market. In fact, in FY22, the price for each tonne of common rice exported was only $354, which was lower than the Minimum Support Price (MSP) for rice.
  • Buying below MSP or issues with distribution which means that either rice exporters were buying rice (paddy) from farmers and millers at prices below the MSP, or a significant portion of rice provided for free under the PM Garib Kalyan Ann Yojana (PMGKAY) was being sent for export at prices below the MSP.
  • Certain states, particularly Punjab, provide free electricity for irrigation, and highly subsidized fertilizers, especially urea, which gives Indian rice an artificial competitive edge in global markets.

What Can Indian Farmers and Consumers Anticipate?

  • The government has raised the Minimum Support Price (MSP) for rice, and rice millers are now buying paddy at a price higher than the MSP.
  • Because of this, farmers can expect that prices won't go down.
  • Limits on exports will make sure that rice prices in the market don't suddenly go up by a lot.
  • For people in India who are buying rice, there's a small increase in prices right now, but over time, there will still be enough rice available and prices aren't predicted to go way up.

Actions Taken by the Central Government:

  • To control the prices of rice in the country and make sure there's enough food for people here, the Union government has stopped exporting regular (non-basmati) white rice.
  • They have also put a 20% tax on exporting partially cooked rice until October 15.
  • For Basmati rice, the government says it can be exported if the contract's value is $1,200 per tonne or more.
  • Since last September, exporting broken rice has not been allowed.
  • However, in some cases, the government can allow exporting broken rice if other countries need it for their food security and if their government asks for it.

Opinions of Rice Exporters:

  • Indian par-boiled rice is still competitively priced in the global market, even with the 20% duty added.
  • When the world rice market is strong, it can handle higher prices as well. Overall, there's a lot of demand from other countries.
  • Countries like Indonesia, which usually sell rice, are now buying (raw rice) from other places.
  • According to rice exporters, instead of dividing rice into Basmati and non-Basmati, the government should think about categorizing it as regular rice and special rice for making export decisions.
  • Around 12 types of rice have something called Geographical Indication (GI) recognition, and these should be kept separate from general market rules.
  • For Basmati rice, the government could have let exports continue or set a minimum value for exports at $900 per tonne.
  • Basmati rice is unique, and there will be new rice arriving soon, so there's no real need for restrictions.
  • Since Indian rice quality is good and supply is steady, other countries will want it even more in the future.

India's G20 Presidency and Financing the green transition (Indian Express)

  • 30 Aug 2023

Why in the News?

With India gearing up to host the G20 summit on September 9 and 10, the focal points of extensive discussions are expected to revolve around climate change and its financial aspects. The current pledges from developed nations, particularly concerning climate financing mechanisms, fall short in effectively addressing the challenges posed by climate change.

What is Climate Finance?

  • Climate finance encompasses funding at the local, national, or transnational levels.
  • The UNFCCC, the Kyoto Protocol, and the Paris Agreement emphasize the need for financial support from wealthier Parties to aid those with fewer resources and greater vulnerability.
  • This acknowledgment is rooted in the understanding that countries' contributions to and capabilities for addressing climate change differ widely.
  • Mitigation efforts demand substantial investments for significant emission reductions.
  • Equally, adaptation efforts rely on substantial financial resources to counter the adverse effects and mitigate the impacts of a shifting climate.

Challenges with the Current Framework of Climate Financing:

Inadequacy of the $100 Billion Target

  • During COP15 in 2009 (Copenhagen, Denmark), developed nations collectively committed to mobilize $100 billion annually by 2020 to support climate initiatives in developing countries.
  • However, the basis for this figure, established over a decade ago, lacks rationale and logic.
  • Even at its inception, the estimated amount was insufficient to meet the actual requirements, leading to ongoing debates about its adequacy.
  • Moreover, the developing world has consistently raised concerns that the promised $100 billion annually is not being delivered by developed nations.
  • Today, to meet the objectives of the Paris Agreement, the demand for climate finance stands at approximately $4.35 trillion.
  • Actual expenditure remains just a fraction of this, around one-seventh of the needed sum.

Inclusion of Commercial Loans as Grants

  • Developed nations (OECD) claim to have provided nearly $80 billion to developing nations as climate finance in 2020.
  • However, the actual financial transfers amount to only $19-22 billion.
  • This discrepancy arises from the developed world including regular commercial debt related to climate activities in their calculations.
  • This approach reveals an evasion of responsibility, as the committed $100 billion is intended to be in the form of concessional finance or grants, not loans.

Challenges in Financing Adaptation vs. Mitigation

  • Climate finance is comprised of two main categories: mitigation and adaptation.
  • A significant majority (93 percent) of funds directed toward climate finance are channeled into mitigation projects, with an understandable rationale.
  • Mitigation initiatives often generate revenue streams and are perceived as financially viable, making them conducive to loans under standard market conditions.
  • In contrast, adaptation projects entail substantial initial expenses, prolonged timeframes, and a lack of predictable income sources.
  • This makes them appear risky to financial institutions, resulting in limited funding availability.

Limited Progress in Grant Provision

  • Despite the recurrent commitment to deliver $100 billion annually, little tangible progress has been achieved.
  • Even during recent Conferences of Parties (CoP), this promise is reiterated, yet real-world advancements remain limited.
  • In the most recent CoP (CoP27 in Sharm El-Sheikh, Egypt), an agreement was reached to establish a loss and damage fund.
  • However, the fund's specifics and quantum will be finalized later.
  • This fund is intended to address immediate challenges like rising sea levels and desertification.
  • Considering historical trends in concessional finance, substantial outcomes from this proposed fund are unlikely in the near future.
  • Furthermore, there is ambiguity regarding whether countries like India will be eligible to receive assistance or provide it.

Strides Toward Fulfilling Climate Finance Objectives:

  • Global Financing Pact 2023
  • In June 2023, the French President orchestrated a summit aimed at funding climate change mitigation (as well as poverty reduction) in the Global South.
  • During this Summit, it was declared that an additional lending capacity of USD 200 billion would be made accessible to emerging economies.
  • Moreover, the Summit signaled the imminent achievement of the long-anticipated USD 100 billion climate finance target within the current year.
  • Integration of Disaster Clauses:
  • To address the impacts of extreme weather occurrences, the World Bank introduced disaster clauses.
  • These clauses allow for the suspension of debt payments during such events, providing relief to affected nations.
  • Investment in Special Drawing Rights (SDRs):
  • The IMF unveiled a commitment to allocate USD 100 billion in Special Drawing Rights (SDRs) to support vulnerable nations.
  • However, certain SDR allocations are pending approval from the US Congress.

Way Forward for India and Other Developing Nations Amidst Limited Support from Developed Countries:

  • Resource Mobilization for Climate Finance:
  • In the face of the inadequacies in support from developed nations, countries like India must now turn inwards and strategically mobilize resources for climate finance.
  • This endeavor calls for collaborative efforts among various institutions that can complement each other's strengths.
  • Financial organizations will need to invest in mature technologies, such as wind and solar, which are commercially viable.
  • Investing in Advanced Technologies:
  • For technologies not yet ready for widespread commercial viability, governments must play a pivotal role.
  • For instance, direct financial backing is essential for the adoption of electrolysers in nascent areas like green hydrogen.
  • Currently, the cost of electrolysers poses a barrier, and scaling up through substantial orders can trigger cost reductions through economies of scale.
  • Private Sector Engagement in Adaptation Projects:
  • Regarding adaptation initiatives, involving the private sector is crucial, necessitating government intervention to facilitate collaboration.
  • Globally, most adaptation funding originates from multilateral development banks in the form of loans.
  • However, private sector participation in adaptation projects remains below 2 percent.
  • This imbalance arises from the private sector's perception of adaptation projects as high-risk ventures, given the limited incentives available for such engagements.
  • If governments co-finance adaptation projects with the private sector, it could mitigate risks and attract private sector participation.

Securing Additional Resources

  • To enable government involvement in these endeavors, additional resources will be indispensable. Possible avenues include imposing carbon taxes, issuing green bonds, and exploring catastrophe (CAT) bonds, among other innovative mechanisms.

When it comes to climate finance, countries must primarily look within, given the apparent lack of full commitment from the developed world to provide necessary assistance.

This holds special importance for nations like India, particularly as they might not qualify for concessional financing. As a result, these countries need to prioritize self-reliance and innovative strategies to address the challenges of climate change.

Mains Question:

  • How can developing countries like India address climate finance challenges in the face of limited commitment from developed nations? Discuss strategies for effective funding and the role of self-reliance. (15M)

Aditya-L1 (Indian Express)

  • 29 Aug 2023

Why in the News?

The Aditya-L1 mission will launch on September 2 from Sriharikota, according to ISRO. The first Indian observatory in space, Aditya L1, will study the Sun.

What is the Aditya-L1 Mission?

Aditya, which in Sanskrit means "Sun," is a coronagraphy spacecraft that is intended to research the solar atmosphere, or solar corona, which is its outermost region. It was created by ISRO and several other Indian scientific organizations. It will be launched on a PSLV-XL launch vehicle and is the first specifically designed Indian mission to view the Sun.

Objectives of Aditya-L1 Mission:

  • The Aditya L1 payloads' suits are anticipated to deliver vital data for comprehending the phenomenon of:
  • The dynamics of space weather, particle and field propagation.
  • Coronal mass ejection (CME), pre-flare and flare activities and their features, etc.
  • The position of the spacecraft:
  • The spacecraft will be positioned in a halo orbit around the Sun-Earth system's Lagrange point 1 (L1), according to ISRO.
  • The main benefit of having a satellite in the halo orbit around the L1 point is being able to continuously see the Sun without any occultation or eclipses.
  • This will provide us a better opportunity to watch the solar activity and how it affects the space weather in real time.
  • 1.5 million kilometers separate L1 from the planet. The spacecraft is anticipated to take more than 120 days to arrive to L1.
  • Study conducted by Aditya L1
  • The photosphere, the lowest layer of the sun that we can see directly, the chromosphere, the layer 400–2,100 km above the photosphere, and the outermost layers of the sun (the corona), are the three layers that the spacecraft is equipped to observe.
  • The remaining three playloads will examine particles and fields in situ at the Lagrange point L1, while the final four playloads will directly research the Sun.
  • Remote sensing payloads that will study the sun include:
  • The Visible Emission Line Coronagraph (VELC) for corona/imaging and spectroscopy and CME;
  • The Solar Ultraviolet Imaging Telescope (SUIT) for photosphere and chromosphere imaging;
  • The Solar Low Energy X-ray Spectrometer (SoLEXS), a soft X-ray spectrometer for Sun-as-a-star observation; and
  • The High Energy L1 Orbit
  • The payloads used to study the L1 in situ Aditya Solar Wind Particle Experiment (ASPEX) for solar wind/particle analyzer protons and heavier ions with directions;
  • Plasma Analyser Package For Aditya (PAPA) for solar wind/particle analyzer electrons and heavier ions with directions; and
  • Advanced Tri-axial High Resolution Digital Magnetometers for in situ magnetic field study.

Why is it necessary to study the Sun?

  • Every planet, including Earth and the exoplanets outside the Solar System, evolves — and the parent star governs this evolution.
  • The weather of the entire system is influenced by the solar weather and environment.
  • Variations in this weather can cause satellites' orbits to shift or their lives to be cut short, interfere with or damage onboard electronics, and cause power outages and other disruptions on Earth.
  • Understanding space weather requires knowledge of solar occurrences.
  • Continuous solar observations are required to learn about, track, and anticipate the impact of Earth-directed storms.
  • Every storm that forms in the Sun and travels to Earth passes through L1.

What is the first Lagrange point?

  • A Lagrange point is a place in space where the gravitational attraction of two enormous masses exactly equals the centripetal force necessary to move with them.
  • That is, at that moment, the gravitational attraction and repulsion between two celestial entities is such that an object put between them effectively stays in the same relative position while travelling with them.
  • These spots in space can be employed by spacecraft to lower the amount of fuel required to stay in position.
  • The five Lagrange points are named after the Italian-French mathematician Josephy-Louis Lagrange: L1, L2, L3, L4, and L5.
  • The Earth-Sun system's L1 point provides an unobstructed view of the Sun.
  • The Solar and Heliospheric Observatory Satellite SOHO is currently based there.
  • The James Webb Space Telescope of NASA is at L2.

Other Solar Missions by Different Countries:

  • United States
  • Parker Solar Probe (August 2018): Touched the Sun’s upper atmosphere, sampled particles and magnetic fields in December 2021
  • Solar Orbiter (February 2020): Explores the Sun’s changing space environment
  • Europe
  • Ulysses (October 1990): Studied space environment above and below the Sun’s poles
  • Proba-2 (October 2001): Part of solar exploratory missions.
  • Upcoming: Proba-3 (2024), Smile (2025)
  • China
  • Advanced Space-based Solar Observatory (ASO-S, October 2022): Launched to observe the Sun.
  • Japan
  • Hinotori (ASTRO-A, 1981): Studied solar flares using hard X-rays
  • Yohkoh (SOLAR-A, 1991): Studied solar activity
  • Hinode (SOLAR-B, 2006): Studied the Sun’s impact on Earth.

India and the Asian Development Bank to establish a climate change and health hub in Delhi (The Hindu)

  • 28 Aug 2023

Why in the News?

India's G-20 document states that the climate change and health hub will facilitate knowledge sharing, partnerships, and innovations to assist developing countries, while health systems will face challenges from infectious diseases and natural disasters driven by climate change.

Why in the news?

  • India, in collaboration with the Asian Development Bank (ADB), is gearing up to inaugurate a climate change and health hub in the national capital.
  • This initiative follows India's earlier achievement in hosting the inaugural WHO Centre for Global Traditional Medicine, located in Jamnagar, Gujarat.
  • The forthcoming hub's mission is to foster knowledge exchange, cultivate partnerships, drive innovations, and extend support to nations beyond the G-20, with a special focus on developing countries.

The Significance of the Climate Change and Health Hub:

  • Fostering Collaboration: This center holds paramount significance as it brings together diverse partners to engage in vital discussions regarding the far-reaching impacts of climate change.
  • It provides a unique platform for shared learning and collaboration among stakeholders.
  • Addressing Health Emergencies: India's recent G-20 outcome document highlights that climate change remains a key driver of health emergencies, including the resurgence of infectious diseases.
  • Moreover, it exacerbates the frequency and severity of natural disasters, posing a significant threat to the capability of health systems to provide essential services.
  • Boosting Resilience: Given this backdrop, it is imperative to bolster the resilience of health systems against the adverse effects of climate change.
  • The G-20 outcome document outlines a commitment to prioritize the development of climate-resilient health systems, establish sustainable and eco-friendly healthcare supply chains, mobilize resources for resilient, low-carbon health systems, and promote collaboration through initiatives like the WHO-led Alliance for Transformative Action on Climate and Health (ATACH).
  • Tackling Zoonotic Spillovers: The recent G-20 Health Ministers' meeting expressed concern about the rising incidence of zoonotic spillovers, leading to the emergence of new diseases.
  • In this context, there is an urgent need to identify both new and existing drivers using a scientific and risk-based approach while reinforcing existing infectious disease surveillance systems.
  • Global Impact: Situated in New Delhi, the Climate Change and Health Hub is poised to address these pressing issues on a global scale, serving as a hub for international collaboration and solutions.

About Asian Development Bank (ADB):

  • Founded in 1966, the Asian Development Bank (ADB) is a multilateral institution that counts 68 members among its ownership, with 49 hailing from the Asian and Pacific region.
  • ADB is unwavering in its commitment to fostering a prosperous, inclusive, resilient, and sustainable future for Asia and the Pacific, all while maintaining its steadfast resolve to eliminate extreme poverty.
  • To achieve its noble objectives, ADB extends its support to member nations and partners through a comprehensive suite of financial instruments.
  • This includes loans, technical assistance, grants, and equity investments, all aimed at catalyzing social and economic development across the region.
  • In essence, ADB stands as a stalwart advocate for advancing social and economic development in Asia and the Pacific.
  • As of December 31, 2019, ADB's five largest shareholders are Japan and the United States, each possessing 15.6% of total shares, followed by the People's Republic of China (6.4%), India (6.3%), and Australia (5.8%). The institution's headquarters are situated in Manila, Philippines.

About WHO Global Centre for Traditional Medicine (GCTM):

  • The WHO Global Centre for Traditional Medicine (GCTM) is a pioneering knowledge hub dedicated to traditional medicine, recognized as the world's premier center of its kind.
  • Situated in Jamnagar, Gujarat, it represents a remarkable collaboration between nations.
  • India, as the primary investor in GCTM, has committed an approximate sum of US$ 250 million to facilitate the center's establishment, infrastructure development, and operational activities.

The GCTM is designed to achieve five key objectives:

  • Archiving Traditional Wisdom: GCTM seeks to harness technology to construct a comprehensive database of traditional knowledge systems.
  • Setting International Standards: It aspires to establish global standards for the testing and certification of traditional medicines, enhancing confidence in these age-old remedies.
  • Global Knowledge Exchange: The center aims to serve as a global platform where experts in traditional medicine converge to share their experiences and expertise.
  • Funding Research: GCTM endeavors to mobilize resources and funding for research in the field of traditional medicines, fostering innovation and scientific exploration.
  • Holistic Healing Protocols: The center is dedicated to developing holistic treatment protocols for specific diseases, enabling patients to benefit from the complementary strengths of both traditional and modern medicine approaches.

Chandrayaan-3 Successfully Lands on the Moon (The Hindu)

  • 24 Aug 2023

Why in the News?

India's Chandrayaan-3 mission made an indelible mark in history with its successful lunar landing. Achieving a 'soft landing' at the Moon's south pole, India now stands as the sole nation to have accomplished this remarkable feat.

Nearly sixty years after the Soviet Union’s Luna 9 mission made history as the first soft landing on the Moon, a lunar landing remains elusive for many countries. Russia’s Luna-25 mission failed earlier this week, in the same year that the Japanese Hakuto mission crash-landed. In 2019, Chandrayaan-2’s crash was preceded by Israel’s Beresheet facing a similar fate.

What is Soft Landing?

  • A 'soft landing' refers to the precise and controlled landing of a spacecraft at a gentle speed, ensuring minimal or no damage to the craft.
  • This achievement highlights the technical prowess of the spacecraft.
  • During a soft landing, the spacecraft executes a sequence of maneuvers and braking procedures aimed at diminishing its velocity and aligning it with the chosen landing area.
  • Typically, this involves activating retro-rockets or thrusters to gradually reduce descent speed and maintain a carefully managed approach.
  • The ultimate objective is to guide the spacecraft to the surface in a manner that avoids significant damage, showcasing the precision and expertise of the mission.

But why is it so difficult?

  •  The Moon has an extremely thin atmosphere. This means that spacecraft cannot rely on atmospheric friction to slow down considerably ahead of a landing which means that they will have to rely heavily on their propulsion systems to make a safe landing.
  • Also, there is no GPS on the Moon, unlike here on Earth.
  • This means that onboard computers will have to make quick calculations and maneuvers to land at a safe location without guidance from a massive network of satellites.

Why is ISRO Aiming for the Southern Pole?

  • All of the spacecraft that have landed on the Moon previously have landed in the equatorial region, either a few degrees of latitude north or a few degrees south of the lunar equator.
  • NASA’s Surveyor 7 is the mission that went farthest from the equator in history, landing as far away as 50 degrees south of the equator.
  • It is not without reason that so many missions land near the equator.
  • The terrain and temperature there are more welcoming, making the long and sustained operations of instruments easier.
  • Also, the surface there is relatively smooth with very few steep slopes, hills, and craters.
  • Due to the difficult environment, the polar regions of the Moon have largely remained unexplored.
  • But if the data from many previous orbiter missions is anything to go by, these regions could be very interesting to explore.
  • Chandrayaan-1 observed some evidence of the presence of ice molecules in the deep craters in the region.
  • Also, the cold temperatures of the region mean that things trapped there would remain frozen for a long time.
  • Essentially, that part of the Moon could act as a “time capsule.”
  • This could help scientists discover clues about the early history of the solar system, including how the Earth and the Moon formed.

Why the South Pole of the Moon Holds Significance?

  • Abundant Water Resources: Compelling evidence suggests the presence of water ice within the perpetually shadowed craters at the moon's south pole.
  • This water resource holds immense value for future human lunar exploration, serving potential uses such as drinking water, food cultivation, and the production of rocket fuel.
  • Various Volatiles: Beyond water ice, the moon's south pole may house other volatiles like methane and ammonia, offering additional resources for prospective lunar missions.
  • Geological Fascination: The lunar south pole boasts intriguing geological features, notably the South Pole-Aitken basin, the moon's largest impact basin.
  • Studying this basin could yield valuable insights into the moon's formation and evolutionary history.
  • Prime for Astronomical Observations: The permanently shadowed craters at the moon's south pole provide an excellent vantage point for astronomical observations.
  • Shielded from the Sun's radiation, these craters offer ideal conditions for studying radio waves and other forms of radiation that Earth's atmosphere tends to block.

What Has Changed Since the Chandrayaan-2 Setback?

  • Enhanced Landing Gear: Chandrayaan-3's landing legs have been fortified to guarantee stability and secure touchdown, even at a velocity of 3 meters per second, equivalent to 10.8 kilometers per hour.
  • Expanded Landing Flexibility: Unlike wheeled vehicles, a lunar lander employs stilts or legs to land.
  • The potential landing area has been broadened, with Chandrayaan-3 now programmed to touch down safely within a 4-kilometer by 2.4-kilometer zone, rather than aiming for a specific 500-meter by 500-meter patch as previously targeted by Chandrayaan-2.
  • Ample Fuel Reserves: Chandrayaan-3 carries an increased fuel load compared to Chandrayaan-2.
  • This surplus fuel is on standby for last-minute adjustments to the landing site if required.
  • Enhanced Solar Panels: The Chandrayaan-3 Lander is equipped with solar panels on all four sides, a significant upgrade from Chandrayaan-2's two-sided configuration.
  • This design ensures the Lander can harness solar power consistently, even if it lands incorrectly or experiences tumbling.
  • At least one or two sides will continually face the Sun, ensuring uninterrupted power generation.

What Next After Chandrayaan-3 successfully lands on the Moon?

  • Payloads in Action: Typically, spacecraft carry specialized instruments and experiments, known as payloads, to observe and record events in space.
  • Data Transmission to Earth: The data collected by these payloads is then transmitted back to Earth, where scientists analyze and study it for valuable insights.
  • Consistent Payloads: In Chandrayaan-3, the six payloads on the Vikram lander and rover Pragyan remain consistent with the previous mission.
  • Scientific Payloads on Lander: The lander hosts four scientific payloads that focus on various aspects, including the study of lunar quakes, thermal properties of the lunar surface, changes in the plasma near the surface, and a passive experiment aimed at precise measurements of the Earth-Moon distance. One of these payloads comes from NASA.

Rover Payloads: The rover carries two payloads designed to examine the chemical and mineral composition of the lunar surface. They are tasked with determining the presence and composition of elements like magnesium, aluminum, and iron in lunar soil and rocks.

India’s Smartphone Manufacturing Dreams and PIL Scheme (The Hindu)

  • 23 Aug 2023

Why in the News?

In recent months, there has been an ongoing exchange of viewpoints between former RBI governor Raghuram Rajan and Minister of State for Electronics Rajeev Chandrasekhar regarding the performance of a Central government initiative aimed at enhancing the electronics manufacturing sector.

Context:

  • In the backdrop of this discussion, it's important to highlight that former RBI governor Raghuram Rajan, along with two fellow economists, released a concise research paper in which they posited that the Production-Linked Incentive (PLI) program might not be effectively driving India toward self-reliance in manufacturing.
  • They contended that taxpayer funds were potentially being used to establish an ecosystem centered around low-level assembly jobs, which could still heavily rely on imports.

What Is the Production-Linked Incentive (PLI) Scheme?

  • The PLI scheme was designed with the overarching goals of bolstering domestic manufacturing capacity, augmenting import substitution, and fostering employment generation.
  • Launched in March 2020, this initiative initially focused on three key industries:
  • Mobile and related Component Manufacturing
  • Electrical Component Manufacturing
  • Medical Devices
  • Incentives Offered by the Scheme:
  • The incentives provided under this program are contingent on incremental sales and vary across sectors.
  • They range from as low as 1% for electronics and technology products to as high as 20% for the production of critical key starting drugs and certain drug intermediaries.
  • In certain sectors like advanced chemistry cell batteries, textile products, and the drone industry, incentives are calculated based on sales performance and local value addition over five years.
  • Sectors Covered by the PLI Scheme:
  • To date, the government has unveiled PLI schemes encompassing 14 sectors, including but not limited to the automobile and auto components industry, electronics and IT hardware, telecom, pharmaceuticals, solar modules, metals and mining, textiles and apparel, white goods, drones, and advanced chemistry cell batteries.
  • The introduction of this scheme aligns with several key objectives:
  • Reducing India's reliance on imports from countries like China and other foreign nations.
  • Bolstering labor-intensive sectors to enhance the employment ratio within India.
  • Mitigating import bills while promoting domestic production.
  • It's important to note that the PLI Yojana also extends an invitation to foreign companies to establish their operations in India and encourages domestic enterprises to expand their manufacturing capabilities.

What is the PLI Program in the Smartphone Manufacturing Sector?

  • Among the sectors, the smartphone manufacturing industry has exhibited remarkable enthusiasm for the PLI program.
  • Companies such as Micromax, Samsung, and Foxconn (known for manufacturing Apple phones) stand to benefit by receiving incentives of up to 6% of their incremental sales revenue through the PLI initiative.
  • This program has yielded remarkable results, as evidenced by the staggering growth in mobile phone exports.
  • The exports of mobile phones surged from a modest $300 million in FY2018 to an astonishing $11 billion in FY23.
  • Additionally, the import figures tell a compelling story; while India imported mobile phones valued at $3.6 billion in FY2018, this figure significantly dwindled to just $1.6 billion in FY23.
  • Central government Ministers, including Mr. Chandrasekhar, frequently cite these statistics as compelling evidence of the resounding success of the PLI scheme.

Former RBI Governor Raghuram Rajan's Perspective:

  • In his research paper, the former head of the Central Bank presented the argument that while the imports of fully assembled mobile phones have indeed decreased, the imports of mobile phone components, encompassing items such as display screens, cameras, batteries, and printed circuit boards, experienced a significant upsurge between FY21 and FY23.
  • Interestingly, these two years also marked the period during which mobile phone exports experienced their most substantial growth.
  • His contention revolves around the observation that manufacturers in India are not fundamentally engaged in the traditional sense of mobile phone production, which would involve the localization of the entire supply chain and the domestic production of most components.
  • Instead, what these companies are primarily doing is importing all the requisite parts and subsequently assembling them in India to produce a product labeled as 'Made in India.'
  • Furthermore, Rajan's critique extends to the assertion that low-level assembly work, as opposed to comprehensive manufacturing, does not generate well-paying jobs and lacks the robust multiplier effect that genuine manufacturing might provide to the economy.

What is the Union Government Response:

  • Minister of State for Electronics, Rajeev Chandrasekhar, presents a two-part counter-argument.
  • Firstly, he contends that Mr. Rajan's assumption that all imports of items like screens and batteries are exclusively intended for mobile phone manufacturing is inaccurate.
  • These imported components could also be utilized in the production of other devices such as computer monitors, DSLR cameras, and electric vehicles, among others.
  • Secondly, he points out that not all mobile phone production in India benefits from the PLI scheme; only approximately 22% of the industry has been covered by the scheme thus far.
  • The Minister's primary assertion is that import dependency isn't as severe as Mr. Rajan portrays it to be, given the potential diversity of applications for these imported components and the limited coverage of mobile phone production under the PLI scheme.

In Conclusion:

  • The former RBI Governor contends that even if we assume that only 60% of imports are utilized for production, India's net exports would remain in the negative territory.
  • This means that even if just 60% of components like screens and batteries are dedicated to mobile phone manufacturing, the total imports would still surpass the overall exports.
  • The fundamental divide in this debate revolves around the question of whether the PLI program can effectively generate sustainable employment opportunities and firmly position India as a manufacturing and supply hub that contributes substantial value to the production process.
  • The Union Government's perspective is that the results of the PLI Scheme may require time to become fully apparent and impactful.

National E-Commerce Policy (Financial Express)

  • 22 Aug 2023

Why in the News?

The Commerce and Industry Ministry is in the final stages of formulating the proposed national e-commerce policy, and at this point, no additional draft policy will be released to solicit input from stakeholders.

Context:

  • Electronic commerce (e-commerce) is emerging as a pivotal driver of India's economic growth and development.
  • Estimates indicate that, with grocery and fashion/apparel leading the way, the Indian e-commerce sector is poised to reach a valuation of $99 billion by 2024, with projections soaring to $300 billion by 2030.
  • Recognizing this immense potential, the government is diligently monitoring the evolving landscape of electronic business, calling for a regulatory framework to safeguard the interests of buyers, sellers, marketers, and distributors.
  • In 2019, a draft National E-Commerce policy was drafted and made available to the public for scrutiny.
  • In response to this draft policy, numerous foreign governments, including the United States, have submitted comments, highlighting concerns affecting U.S. businesses.
  • In August 2023, the Department for Promotion of Industry and Internal Trade (DPIIT) conducted extensive discussions with representatives from e-commerce companies and domestic trade associations concerning the proposed policy.
  • A government official noted that a consensus has been reached among the involved stakeholders regarding the proposed policy.

Key Highlights of the National E-Commerce Policy:

  • On February 23, 2019, the Ministry of Commerce and Industry unveiled the draft National E-Commerce Policy (DPIIT 2019).
  • Aim:
  • The national e-commerce policy seeks to establish a regulatory framework that simplifies business operations within the sector.
  • Boosting Exports:
  • This policy recognizes the substantial export potential within India's e-commerce sector.
  • Projections indicate that by 2030, India's e-commerce exports could range from 200 billion USD to 300 billion USD annually.
  • Given the anticipated growth in global cross-border e-commerce exports, expected to reach 2 trillion USD by 2025, India aims to harness this opportunity.
  • Regulatory Body and FDI:
  • The possibility of creating a regulatory authority for the e-commerce sector is under consideration, though its implementation may require time.
  • Local trade associations have been advocating for an empowered regulatory body to enforce e-commerce regulations and address violations.
  • While 100% foreign direct investment (FDI) is
  • permissible in the marketplace model, the inventory-based model does not allow FDI.
  • Addressing Trader Concerns:
  • Traders have voiced concerns regarding e-commerce rule violations, such as steep discounts and preferential treatment for specific sellers.
  • The policy aims to clarify these concerns and enhance transparency in FDI regulations for e-commerce.
  • Furthermore, the Consumer Protection (e-commerce) Rules 2020 and proposed amendments will align with the e-commerce policy to maintain consistency.
  • Comprehensive Framework:
  • The e-commerce policy will function as a comprehensive framework for the sector, ensuring harmony among various governing statutes.
  • The sector is presently regulated by the FDI policy, the Consumer Protection Act of 2019, the Information Technology Act of 2000, and the Competition Act of 2002.
  • The policy intends to streamline these regulations, creating an environment conducive to the e-commerce industry's growth.

Advantages Highlighted in the Draft E-Commerce Policy:

  • Enhanced Information Provision: One notable strength of the draft e-commerce policy lies in its emphasis on comprehensive information provision.
  • It mandates that firms furnish clear details about product specifications, images, return and exchange policies, payment methods, and grievance redressal procedures.
  • This ensures consumers have access to transparent information, fostering a healthy e-commerce market.
  • Clear Grievance Redressal Mechanisms: The policy advocates for the establishment of transparent grievance redressal mechanisms, including the appointment of nodal officers, specified timeframes, and defined processes.
  • These measures benefit consumers by facilitating seamless pre- and post-purchase processes.
  • Seller Transparency: The policy requires platforms to disclose seller information, including names, locations, and contact details.
  • This transparency empowers buyers to engage with sellers beyond the confines of a platform if they choose to do so.
  • Fair Data Use: Platforms are prohibited from exploiting the vast data at their disposal to gain an unfair advantage over sellers or exhibit preferential treatment among sellers
  • This regulation plays a crucial role in safeguarding the welfare of sellers.

Criticism of the Draft E-Commerce Policy:

  • Infringement on Other Ministries' Mandates: The proposed rules appear to encroach upon the mandates of other ministries.
  • For instance, the 'fallback-liability' provision holds platforms responsible for any mis-spelling by third-party sellers, contradicting the Finance Ministry's FDI rules that limit platform inventory management.
  • Additionally, it removes the immunity granted specifically to marketplaces under the IT Act.
  • Redundancy in Regulatory Oversight: The Ministry of Corporate Affairs argues that rules addressing the abuse of competitive positions are unnecessary since the Competition Commission of India already oversees such matters.
  • Restrictive Measures on Related Parties: The policy restricts related parties from engaging in commercial activities on platforms, with related parties defined as entities with common shareholders owning more than 5% or over 10% ownership.
  • While well-intentioned, this clause may not align with regulatory objectives.

Mains Question:

  • Examine the objectives of India's National E-commerce Policy about consumer protection and seller support. Analyze the criticisms and challenges posed by its potential impact on other ministries and restrictions on related parties. (15M)

Green Hydrogen Standard for India (Indian Express)

  • 21 Aug 2023

Why in the News?

The Indian Ministry for Clean Energy has set rules for making green hydrogen in India. These rules say how clean the hydrogen must be. They also promise to explain how to check and confirm if the hydrogen is green.

What is Green Hydrogen?

Green hydrogen is clean energy made by splitting water using renewable sources like wind, sun, and water power. It can be a big part of moving to an eco-friendly economy and fighting climate change. This hydrogen can be saved and used as fuel for vehicles, factories, and farming.

If we compare it to grey and blue hydrogen:

  • Grey hydrogen is made using electricity from fossil fuels, which make harmful gases. Right now, 95% of hydrogen is made this way.
  • Blue hydrogen is also made using fossil fuels for electricity, but it's made cleaner by stopping the harmful gases from going into the air using a special technology called carbon capture and storage (CCS).

Why We Should Invest in Green Hydrogen?

  • Cutting Greenhouse Gas Emissions: The main reason to embrace green hydrogen is to slash greenhouse gas emissions and fight climate change.
  • Traditional fuels used for transportation and power generation produce lots of harmful emissions.
  • Green hydrogen, made from clean sources, doesn't emit any of these gases, making it a planet-friendly energy choice.
  • Energy Security and Independence: Fossil fuels are running out, and their prices can go up and down because of supply and demand.
  • By going for clean energy like green hydrogen, countries can be more self-reliant and not as affected by price swings and fuel shortages.
  • Creating Jobs and Industries: Making green hydrogen opens up new businesses and job opportunities, especially in clean energy.
  • Producing, storing, and moving green hydrogen needs special skills and infrastructure, which can mean lots of new jobs.
  • The renewable energy field, for example, employed 11 million people worldwide in 2018 and is set to create over 42 million jobs by 2050, says the International Renewable Energy Agency (IRENA).
  • Clean-Up Tough Industries: Some industries, like heavy manufacturing and aviation, are hard to clean up.
  • They make a big mess in the environment. Green hydrogen can replace dirty fuels in these sectors and help them become cleaner.
  • Boosting Technology: Developing green hydrogen forces us to come up with new ideas and technologies in lots of areas.
  • Making, storing, and moving green hydrogen needs new stuff, like materials and systems which can lead to big advances in technology and how things work.

What are the Uses of Green Hydrogen?

In Agriculture:

  • Replacing Fossil Fuels:
  • Green hydrogen can take the place of fossil fuels in farming. It can help make ammonia, which is used in fertilizers.
  • Normally, we make ammonia from natural gas, which makes harmful gases.
  • Green ammonia made with green hydrogen is clean and has benefits like working better and not making the soil too acidic.
  • But, making lots of green ammonia needs new technology and lots of money, so it might not happen quickly.
  • Green-Powered Farm Machines:
  • Big machines on farms, like tractors, use a lot of energy. Using green hydrogen to power these machines can cut down on harmful gases but still give them enough power to do their jobs.
  • Water Management:
  • Green hydrogen can help make saltwater into freshwater using special machines called desalination plants. This helps save fresh water.

In Transportation:

  • Hydrogen Fuel Cells:
  • These are like magic batteries that run on hydrogen and oxygen. They make electricity for vehicles without making any bad stuff.
  • Hydrogen-powered vehicles can go far and fill up fast, which is great for long trips.

In Industry:

  • Saving Money:
  • We can make green hydrogen when there's extra clean energy, like when the wind is blowing strong. Then we save it for when we need it. This can lower energy costs and help the environment.
  • Reliable Energy:
  • Green hydrogen can be made and saved right where it's used, so it's always ready.
  • This means we don't have to rely too much on the power grid, which is good for energy independence.
  • Less Waste:
  • We can make green hydrogen from stuff we don't want, like trash and farm leftovers. This can cut down on waste and be good for the planet.
  • Using Energy Better:
  • Green hydrogen can power things called fuel cells, which are more efficient than regular engines which means we use less energy, which is better for everyone.

What India is Doing to Boost Green Hydrogen?

India knows that green hydrogen can help make the country cleaner and reach climate goals. They have started many plans to make, use, and even sell green hydrogen.

Here are some important ones:

  • National Hydrogen Mission: This is like a big plan to make India a leader in green hydrogen and everything that comes from it. They will also work on things like trying it out, studying it, teaching people about it, making rules, and setting goals.
  • Using More Green Hydrogen: The government wants some big industries, like fertilizer and oil refining, to use a part of their hydrogen from green sources. It's kind of like how they ask electricity companies to use more clean energy.
  • Green Hydrogen Centers: Special places in India are being picked where they can make a lot of green hydrogen and use it too. These places will be like hubs for all things green hydrogen.

Key Highlights of India's Green Hydrogen Standard:

  • Defining Green Hydrogen: Green hydrogen in India means making hydrogen in a way that doesn't create more than two kilograms of carbon dioxide for every kilogram of hydrogen. India now joins a small group of countries with a clear green hydrogen definition.
  • What's Counted: This measurement includes everything from cleaning water to making hydrogen, plus purifying, drying, and compressing it.
  • Different Production Methods Included: This rule covers hydrogen made using electricity (like machines) and hydrogen made from biomass (plants).
  • Nodal Authority: The Bureau of Energy Efficiency (BEE) under the Ministry of Power is the boss that approves agencies responsible for watching, confirming, and certifying green hydrogen projects.

Challenges in Implementing Green Hydrogen:

  • Cost Barrier: Right now, green hydrogen is more expensive than regular fossil fuels.
  • This is because it needs special equipment and systems for production, storage, and transport, however, as technology gets better and we make more of it, the cost is likely to come down.
  • Building Infrastructure: To use green hydrogen everywhere, we need a strong system in place to produce it, store it, and move it around.
  • This system must also work well with our current energy setup to make the switch to green hydrogen smooth.
  • Energy Storage: Green hydrogen comes from sources like the wind and sun, which aren't always available.
  • We need smart ways to store extra energy when it's sunny and windy so that we have a constant supply of green hydrogen.
  • Batteries and special hydrogen storage can help with this.
  • Safety: Green hydrogen is a gas that can catch fire easily, so we need to be very careful when handling and storing it.
  • Creating safety rules and regulations is important to make sure it's handled safely.

Way Forward

  • Tackling High Costs: Green hydrogen currently costs more to produce and use than hydrogen from fossil fuels or other low-carbon sources. To address this, we should focus on developing more efficient technologies. This might involve improving electrolysis systems to use less energy or integrating green hydrogen production with renewable energy sources like wind and solar to reduce electricity costs.
  • Government Support: Governments can play a vital role by implementing rules that encourage the adoption of green hydrogen. This might include tax breaks or subsidies to make green hydrogen more attractive for both producers and users.
  • Building the Right Infrastructure: Green hydrogen needs its own infrastructure and supply chain. The current setup for regular hydrogen doesn't work well for green hydrogen. We need to build an efficient and cost-effective system for producing, storing, transporting, and distributing green hydrogen.
  • Cooperation Among Stakeholders: Making green hydrogen happen involves many different groups, from renewable energy makers to hydrogen producers and users. They all need to work together and have consistent rules, standards, and incentives to make Green hydrogen a success.

Raising Awareness and Building Skills: Green hydrogen is still a new idea for many. We need to show people how it's good, safe, and practical in various uses. This also means training and developing the skills needed to produce and use green hydrogen effectively.

India’s first 3D-printed Post Office (Indian Express)

  • 19 Aug 2023

Why in the News?

  • The inaugural of India's first 3D-printed post office took place virtually, led by Union Minister Ashwini Vaishnaw in Bengaluru's Cambridge Layout.
  • The post office was constructed in an impressive 43 days, finishing two days ahead of schedule.
  • Larsen & Toubro Limited, a multinational company, partnered with IIT Madras to provide the technological expertise for building this innovative post office.

What is 3D Printing?

  • 3D printing, also known as additive manufacturing, employs computer-aided design to create prototypes or functional models of objects by depositing successive layers of materials like plastic, resin, thermoplastic, metal, fiber, or ceramic.
  • The process begins with computer software developing the model, which then provides instructions to the 3D printer.
  • The primary form of 3D printing, known as additive manufacturing, caters to specific demands, often producing specialized items like lightweight equipment for unique projects.
  • This technology finds crucial applications in fields like healthcare and related industries.
  • On a global scale, the USA leads in 3D printing, commanding more than 35% of the market.
  • In Asia, China dominates, capturing around 50% of the market, while Japan follows at 30%, and South Korea at 10%.

Applications of 3D printing:

  • The applications of 3D printing are extensive and diverse, finding their place in various industries worldwide.
  • This technology is increasingly harnessed for:
  • Mass Customization: 3D printing enables tailored production, catering to individual preferences.
  • It contributes to open-source designs in the agriculture, healthcare, automotive, locomotive, and aviation sectors.
  • Objects are built layer by layer using materials directly from computer-aided design (CAD) models.
  • 3D printing serves a wide spectrum, including affordable housing up to G+3 floors, military barracks, single-floor schools, warehousing, accommodations, and villas.

How 3D Printing Works?

  • Prerequisites:
  • To engage in 3D printing, you'll require a personal computer connected to a 3D printer.
  • The process starts by designing a 3D model of the desired object using computer-aided design (CAD) software and then selecting the 'print' option.
  • The 3D printer then takes over the rest of the process.
  • Design:
  • Initiating the process involves crafting a digital 3D model of the intended object.
  • This model can be formed through 3D modeling software or acquired via 3D scanning techniques.
  • Slicing:
  • The 3D model is segmented into thin horizontal layers through specialized software, with each layer representing a cross-section of the final object.
  • Preparation:
  • The sliced model, along with parameters like layer thickness, print speed, material type, and temperature, is sent to the 3D printer.
  • Printing: The 3D printer follows instructions and starts the printing process using various methods, including:
  • Fused Deposition Modeling (FDM): This common method extrudes molten thermoplastic material through a heated nozzle, building the object layer by layer.
  • Stereolithography (SLA): SLA employs UV laser to solidify liquid photopolymer resin, producing intricate and detailed objects.
  • Selective Laser Sintering (SLS): In SLS, a laser fuses powdered material layer by layer, allowing for versatility in materials like plastics, metals, or ceramics.
  • Powder Bed Fusion (PBF): Similar to SLS, PBF fuses powdered materials like metals, plastics, or ceramics using a laser.
  • Inkjet Printing: Some printers use inkjet-like technology to deposit material in droplets, which are then cured to form layers.
  • Layer-by-Layer Construction:
  • The printer continues depositing material layer by layer as per the sliced model until the complete object takes shape.
  • Supports might be included for intricate or overhanging parts, which can be removed after printing.
  • Post-Processing:
  • After printing, post-processing steps like cleaning, curing, sanding, painting or assembly might be needed, depending on the material and desired finish.

Benefits of 3D Printing Technology:

  • Accessibility Enhancement: 3D printers are increasingly accessible, with local service providers offering manufacturing outsourcing services.
  • Medical Advancements: In healthcare, 3D printing aids in saving lives by producing organs like livers, kidneys, and hearts.
  • Ongoing developments in healthcare harness this technology for significant advancements.
  • Eco-Friendly Approach: With reduced material wastage, 3D printing is inherently environmentally friendly.
  • Cost-Effectiveness: Customization of desired products occurs swiftly, reducing costs associated with using multiple machines for manufacturing.
  • Swift Prototyping: 3D printing generates parts within hours, drastically expediting the prototyping process.
  • Efficient Design and Production: The technology enables rapid design iterations and faster production cycles.
  • Strength and Lightweight Properties: Parts created through 3D printing are strong and lightweight, offering a valuable combination of properties.
  • Complex Object Realization: This technology empowers the creation of intricate objects and shapes that might be unattainable through conventional methods.

Drawbacks of 3D Printing:

  • Design Inaccuracies: Inconsistencies in design accuracy can arise from variations in the type of machine or process used.
  • Some printers may have lower tolerances, leading to differences between the final parts and the original design.
  • Copyright Concerns: As 3D printing becomes more widespread, counterfeit products could proliferate, challenging the distinction between genuine and fake items.
  • Copyright infringement issues and quality control problems can emerge.
  • Impact on Manufacturing Jobs: The automation and printer-based production of 3D technology may lead to a reduction in human labor.
  • This could jeopardize the economies of third-world countries that heavily rely on low-skill manufacturing jobs.
  • Build Size Limitations: 3D printers currently possess compact print chambers, constraining the size of printable parts.
  • Larger objects may require separate printing of components and subsequent manual assembly, increasing costs and time.
  • Material Constraints: While 3D printing accommodates plastics and metals, the range of available raw materials is not exhaustive.

The trajectory of 3D Printing is poised to reshape India's manufacturing and industrial landscape, leveraging digital techniques, communication, imaging, architecture, and engineering. To establish a significant presence in the additive manufacturing or 3D printing domain, it's proposed that India should integrate this technology across all sectors, including defense and public domains. Establishing a governing body comprising local and global industry experts can spearhead this transformative endeavor.

Mains Question:

  • Discuss the advantages and challenges of 3D printing technology in the context of modern manufacturing. Provide specific examples of industries where 3D printing has made significant contributions and highlight the potential impact of this technology on future manufacturing processes and industries. (15M)

MoEFCC’s U-turn to Merge Autonomous Bodies (The Hindu)

  • 18 Aug 2023

Why in the News?

In June, the Ministry of Environment, Forests and Climate Change (MoEFCC) issued a notification quietly walking back on its move to establish integrated regional offices by merging offices of the Forest Survey of India (FSI), the National Tiger Conservation Authority (NTCA), the Wildlife Crime Control Bureau (WCCB), and the Central Zoo Authority (CZA), and thus bring them under the Ministry.

What's in the News?

  • Amidst the Covid-19 pandemic, the central government suggested the consolidation of four entities – NTCA, CZA, WCCB, and FSI – into a single organization.
  • This proposition faced intense criticism from activists who argued that it could strip key environmental bodies of their effectiveness.
  • To illustrate, within the current structure, the NTCA possesses the ability to contest forest clearances for projects that involve diverting areas within Tiger Reserves.
  • However, the proposed amalgamation might have complicated this process, as the NTCA would have fallen under the authority of the Deputy Director General of Forests. This individual oversees the Integrated Regional Office and reports to the Ministry of Environment, Forest and Climate Change (MoEF&CC).

About the Forest Survey of India (FSI):

  • The inception of the Forest Survey of India dates back to 1981, a product of the National Commission on Agriculture's (NCA) suggestions.
  • FSI conducts a biennial evaluation of the nation's forest coverage through digital analysis of satellite data from remote sensing technology. This assessment culminates in the publication of the 'State of Forest Report' (SFR).
  • FSI plays an instrumental role in imparting training to forest officers from diverse Indian states.
  • The base of Operations: Dehradun, Uttarakhand.

About the National Tiger Conservation Authority (NTCA):

  • The National Tiger Conservation Authority, established under the Wildlife (Protection) Act of 1972, operates as a statutory body.
  • Established in 2005 as a result of the recommendations of the Tiger Task Force, its core aims encompass:
  • Granting legal authority to Project Tiger, thereby rendering adherence to its directives a matter of legality.
  • Enhancing the accountability of both the central and state governments in managing Tiger Reserves.
  • Addressing the livelihood concerns of local communities residing in the vicinity of Tiger Reserves.
  • Key Responsibilities:
  • Approval of tiger conservation plans devised by state governments.
  • Ensuring that the integrity of tiger reserves and the ecological connectivity between different protected areas and reserves remain intact, avoiding unsustainable ecological utilization.
  • Providing support and facilitation for the management of tiger reserves within states, aimed at conserving biodiversity.
  • NTCA undertakes a comprehensive Tiger Census across India every four years.
  • Leadership: The chairman of NTCA is the Union Minister of Environment, Forest and Climate Change.

About the Wildlife Crime Control Bureau (WCCB):

  • The Wildlife Crime Control Bureau was established in 2007 as a statutory body under the Wildlife (Protection) Act of 1972.
  • Main Responsibilities:
  • Gathering and organizing information about organized wildlife crimes and quickly sharing it with state and other enforcement agencies to catch the criminals promptly.
  • Creating a central place to store data about wildlife crimes.
  • Coordinating efforts from different agencies to enforce the rules of the Act.
  • Helping other countries and international groups work together to control wildlife crimes.
  • Helping enforcement agencies improve their skills in investigating wildlife crimes.
  • Guiding State Governments to successfully handle cases related to wildlife crimes.
  • The WCCB also assists Customs authorities in checking shipments of plants and animals according to the rules of the Wildlife Protection Act, CITES, and EXIM Policy.
  • The headquarters is based in New Delhi.

About the Central Zoo Authority (CZA):

  • The Central Zoo Authority, established in 1992 as a legal body under the Wildlife (Protection) Act of 1972, has a specific purpose.
  • What It Aims to Achieve:
  • To support and enhance the national mission to conserve the diverse and valuable biodiversity of the country, especially its animals, following the guidelines of the National Zoo Policy from 1998.
  • Every zoo in the nation must gain recognition from this Authority to operate.
  • The Authority's main role is more about helping than controlling. It offers technical and financial assistance to zoos that have the potential to meet the desired standards in animal management.
  • It sets rules and guidelines for transferring animals among zoos within the country and globally.
  • It coordinates and puts into action plans for improving the skills of zoo staff, organized breeding efforts, and research done outside the natural habitat (ex-situ research).
  • Headquarters: New Delhi

Why Did MoEF&CC Put Forward the Proposal?

MoEF&CC explained that the proposal was not about merging but about bringing together the different authorities to operate from 19 regional offices under one central hub.

However, in June 2023, MoEF&CC decided not to go ahead with the merger plan, possibly due to challenges in combining the involved institutions from technical and administrative standpoints.

Consumption-Based Poverty Estimates (The Hindu)

  • 17 Aug 2023

Why in the News?

  • In a recent assessment of multidimensional poverty conducted by NITI Aayog, the findings reveal a decline in the poverty rate from 25% in 2015-16 to 15% in 2019-21.
  • Notably, approximately 135 million individuals were elevated from impoverished conditions within this timeframe.
  • Consequently, it becomes imperative to scrutinize the methodologies underpinning the multidimensional poverty index and ascertain the continued pertinence of poverty evaluations based solely on consumption.

What is Multidimensional Poverty?

  • Traditionally, poverty has been predominantly gauged through single-dimensional indicators, frequently revolving around income levels.
  • Multidimensional poverty, in contrast, comprehensively addresses the array of deficiencies that individuals grappling with poverty encounter in their daily existence.
  • These deficiencies encompass compromised health, limited access to education, insufficient living conditions, disempowerment, subpar employment situations, exposure to violence, and inhabiting environmentally precarious regions, among other factors.

Distinguishing Between Consumption-Based and Multidimensional Poverty Indices (MPI):

  • Poverty gauges based on consumption levels primarily address one aspect of deprivation, without accounting for other dimensions.
  • The global MPI encapsulates both the extent of multidimensional poverty (the percentage of individuals within a population grappling with multidimensional poverty) and its depth (the average number of deprivations experienced by each impoverished individual).
  • Nonetheless, it's important to recognize that while Multidimensional poverty estimates offer valuable insights, they are not intended to replace the National Sample Survey (NSS) consumption-based poverty ratios.

Recent Findings on Multidimensional Poverty in India:

  • Within a mere 15-year span, from 2005/2006 to 2019/2021, a striking 415 million individuals in India have successfully transcended poverty, showcasing a commendable accomplishment by the world's most populous nation.
  • These revelations stem from the latest global release of the Multidimensional Poverty Index (MPI) by the United Nations Development Programme (UNDP) and the Oxford Poverty and Human Development Initiative (OPHI) based at the University of Oxford.
  • The global MPI stands as a comprehensive measure of poverty, encapsulating the various deprivations that underprivileged individuals encounter in the realms of education, health, and living conditions.
  • In the year 2005/2006, approximately 645 million people grappled with multidimensional poverty in India; this figure dwindled to around 370 million in 2015/2016 and further down to 230 million in 2019/2021.

Challenges Associated with the Multidimensional Poverty Index:

  • The Global MPI's Findings Are Not a Novel Revelation
  • The application of the Global MPI as a conclusive breakthrough isn't unprecedented.
  • Poverty estimations grounded in consumer spending and utilizing the Tendulkar committee's framework revealed a reduction of 137 million individuals living in poverty between 2004-05 and 2011-12, despite population growth.
  • Following the Rangarajan Committee's methodology, the decrease from 2009-10 to 2011-12 stands at 92 million, equating to an annual reduction of 46 million.
  • Myriad Indicators to Consider
  • Given the extensive array of dimensions and indicators, it becomes imperative to engage in meticulous asset mapping to pinpoint the most pertinent parameters.
  • However, owing to the abundance of indicators spanning multiple dimensions, the accurate evaluation, and consequent effective policy implementation might pose challenges.
  • Aggregating Across Indicators
  • This presents yet another predicament, as these indicators should ideally remain independent of each other.
  • For instance, indicators like access to clean drinking water should not be aggregated with factors such as child mortality."

Challenges Regarding Consumption Expenditure Surveys:

  • After 2011-12, there is a lack of accessible official records on consumer expenditure, which inhibits the capacity to juxtapose it with trends in the multidimensional poverty index.
  • The survey outcomes about consumption expenditures from 2017-18 have not been officially disseminated.
  • Given the dearth of this information, various studies have attempted to investigate poverty utilizing indirect techniques along with resources such as the Centre for Monitoring Indian Economy (CMIE) and the Periodic Labour Force Survey (PLFS). These endeavors, however, have yielded disparate findings.

Approaches to Tackle MPI Challenges:

  • Integration of MPI with Consumption-Based Poverty Assessments
  • Examining the advancements in non-monetary aspects like education, healthcare, sanitation, access to clean water, and child survival alongside income or consumption poverty can provide valuable insights.
  • However, the conversion of all these variables into a single index introduces complexities.
  • Incorporating Public Services as an Additional Dimension: Regarding multidimensional matters, considering public services as an independent dimension, beyond consumption, can yield more comprehensive results.

Reforming Consumption Expenditure Surveys: A Necessity

  • Enhancing Data Collection Practices
  • An imperative concern revolves around the disparities observed in aggregate consumption estimations between National Accounts Statistics (NAS) and National Sample Survey (NSS) data.
  • It's worth noting that across all nations, the NSS and NAS consumption estimates invariably diverge – a trend India also follows.
  • What is particularly perplexing is the escalating dissimilarity in India between NSS and NAS consumption figures over the years.
  • From a divergence of under 10% in the late 1970s, this gap has widened to a substantial 53.1% in 2011-12. This disparity is too significant to disregard.
  • The National Statistical Office ought to meticulously analyze this issue and proffer potential solutions to enhance data collection through both avenues.
  • Moreover, it's essential to complement the outcomes of consumption surveys with an evaluation of the impact of public expenditure on the health and education of distinct expenditure strata.

A prevalent perception associates wealth or destitution with high or low-income levels. The insufficiency of income is mirrored in numerous non-income poverty indicators.

Defining poverty in terms of income, or when income data is lacking, in terms of expenditure, appears to be the most pertinent approach, and this methodology is prevalent across the majority of countries.

Enhancing the Efficiency of Urea as a Fertilizer: Reasons and Necessity (Indian Express)

  • 15 Aug 2023

Why in the News?

  • Prime Minister of India has recently inaugurated 'Urea Gold,' a novel fertilizer created by the state-owned Rashtriya Chemicals and Fertilizers Ltd (RCF), which involves enhancing urea with sulfur.
  • Urea, a white nitrogen-based chemical fertilizer, artificially enriches plants with a key nutrient, nitrogen.

What are Fertilizers?

  • A fertilizer is a substance, whether naturally occurring or synthetically produced, comprising essential chemical elements like Nitrogen (N), Phosphorus (P), and Potassium (K), which enhance the growth and productivity of plants.
  • In India, the primary fertilizers are Urea, DAP, and Muriate of Potash (MOP), forming the trio of fundamental fertilizing agents.

Fertilizer Utilization in India:

  • The Green Revolution in the 1960s experienced remarkable success due to the abundant application of these fertilizers, resulting in increased grain output.
  • However, the response of crop yields to fertilizer usage has significantly declined over time.
  • For instance, during the 1960s in India, 1 kg of NPK nutrients yielded 12.1 kg of cereal grains; this yield diminished to 5 kg during the 2010s.
  • The primary cause behind this decline has been the imbalanced application of Nitrogen (N) by farmers.

What Factors Sustain Urea's Prominence as the Leading Fertilizer?

  • Advantages in Abundance:
  • Urea retains its supremacy as the most extensively utilized fertilizer owing to its enriched nitrogen content, a pivotal nutrient for promoting plant growth.
  • Urea's widespread popularity is attributed to its accessibility and cost-effectiveness, presenting farmers with a practical nitrogen source.
  • Additionally, its ease of storage and transportation enhances its convenience for both agricultural practitioners and manufacturers.
  • The versatility of urea as a fertilizer is noteworthy, as it suits a diverse array of crops and soil compositions.
  • Substantial Subsidization:
  • In India, urea maintains its position as the top-ranking fertilizer in terms of production, import, consumption, and regulatory control.
  • Urea's consumption has surged by more than a third since 2009-10, primarily due to a mere 16.5% increase in its maximum retail price (MRP), rising from Rs 4,830 to Rs 5,628 per tonne.
  • Nonetheless, the current per-tonne MRP of urea, especially when juxtaposed against DAP (Rs 27,000) and MOP (Rs 34,000), significantly deviates from the recommended 4:2:1 NPK usage ratio, widely considered optimal for Indian soil conditions."

Dual Challenges Arising from Escalating Urea Consumption:

  • India's annual urea consumption, reaching around 36 million metric tons, currently ranks second only to China's 51 million metric tons. China's urea production is primarily coal-derived.
  • In the previous fiscal year, approximately 7.6 million metric tons of urea were imported out of the total 36 million metric tons consumed. Notably, even domestically produced urea relies on imported natural gas as its primary feedstock.
  • The second challenge centers on nitrogen use efficiency (NUE). A mere 35% of the nitrogen applied through urea in India effectively contributes to crop growth and harvested yields.
  • The diminishing NUE, declining from approximately 48% in the early 1960s, compels farmers to increase fertilizer application to attain the same level of yield.

Government Initiatives to Curtail Urea Consumption in India:

  • The initiation of the nutrient-based subsidy (NBS) framework in 2010 marked a pivotal step.
  • Under NBS, the government established a fixed per-kilogram subsidy for each fertilizer nutrient – Nitrogen (N), Phosphorus (P), Potash (K), and Sulphur (S) – a departure from the previous product-specific subsidy system.
  • The primary goal is to encourage balanced fertilization by dissuading excessive application of urea (46% N), di-ammonium phosphate (DAP - 46% P plus 18% N), and muriate of potash (MOP - 60% K).
  • In 2015, the government mandated the application of neem oil coating to all domestically produced and imported urea.
  • While initial years witnessed a decline in consumption, this trend reversed from 2018-19.
  • Subsequently, the transition from 50 kg bags to 45 kg bags occurred in 2018. Moreover, the Indian Farmers' Fertiliser Cooperative (IFFCO) introduced the liquid 'Nano Urea' in 2021. This innovative form of urea as nanoparticles aims to rectify the disproportionate and unsystematic usage of conventional urea. It seeks to elevate crop productivity while diminishing soil, water, and air pollution.
  • Despite these government measures to counter illegal diversion for non-agricultural purposes and enhance nitrogen use efficiency, the reduction in urea consumption has not been achieved."

What is Urea Gold?

  • Ordinary urea typically contains a single plant nutrient, Nitrogen (N), at a concentration of 46%. Urea Gold, on the other hand, consists of 37% N along with an additional 17% sulfur (S).
  • Urea Gold pursues dual objectives.
  • Firstly, it provides Sulphur (S) in conjunction with Nitrogen (N).
  • Indian soils suffer from Sulphur deficiency, a shortfall that is particularly crucial for oilseeds and pulses – commodities in which the nation is heavily reliant on imports.
  • Secondly, Urea Gold aims to enhance the Nitrogen Use Efficiency (NUE) of urea.
  • The sulfur coating on urea ensures a more gradual release of Nitrogen, prolonging its action.
  • This extended effect keeps plants vibrant for an extended duration, thus reducing the frequency of application. For instance, just two bags of Urea Gold (instead of three) could potentially cover an acre of paddy or wheat.
  • As of now, the commercial launch of Urea Gold by RCF is pending, with pricing details yet to be disclosed.

Primary Obstacle in Urea Fortification and the Path Forward:

  • A key challenge pertains to pricing dynamics.
  • For instance, the anticipated Maximum Retail Price (MRP) for Urea Gold is projected to range between Rs 400-500 for a 40-kg bag (compared to approximately Rs 254 for a 45-kg bag of regular neem-coated urea).
  • One potential solution could involve allowing market-driven determination of MRPs for all coated fertilizers.
  • Given that conventional urea and DAP will persist at heavily subsidized rates, manufacturers are likely to face constraints in levying substantial premiums on their fortified fertilizer offerings.
  • An optimal approach would involve conducting the coating process directly at the manufacturing facility.
  • This ensures a more consistent distribution of micronutrients and simplifies the task for farmers, sparing them the intricacies of blending the elements themselves.

Mains Question:

  • Discuss the outcomes of CACP's proposal to incorporate Urea into Nutrient-Based Subsidy. Analyze how Urea's exclusion from NBS contributes to nutrient imbalance and assess how challenges, including economic burden and black marketing, impact the effectiveness of NBS. (15M)

Why India Needs an Industrial Policy? (Indian Express)

  • 11 Aug 2023

Why in the News?

  • India's move to impose import limitations on personal computers, laptops, and a variety of commodities has sparked a discussion about the trajectory of the nation's industrial policy.
  • Detractors view these restrictions as reminiscent of a bygone era when the Indian economy was constrained by the license permit regime.

The Government's Directive Regarding Laptop Import Ban:

  • On August 3rd, the Union Government introduced measures to restrict the import of laptops, tablets, all-in-one personal computers, ultra-small computers, and servers, effective immediately.
  • Entities or businesses intending to import laptops and computers for sale within India will now require government permission or a license for their importation.
  • This directive was issued by the Directorate General of Foreign Trade (DGFT).
  • The restrictions have been enacted under HSN Code 8471, affecting seven categories of electronic devices.
  • The Harmonized System of Nomenclature (HSN) code is an organizational system utilized for tax-related product identification.
  • HSN Code 8471 is employed to categorize devices specifically designed for data processing functions.
  • However, due to issues arising at ports where customs officials were detaining shipments of the specified electronic goods, the DGFT opted to suspend the enforcement of this measure until November 1st, 2023."

Concerns Regarding the Laptop Import Restrictions:

  • These limitations have raised concerns about a potential regression of the Indian economy into the period characterized by the license permit system, during which discretionary and authoritarian bureaucratic control prevailed, sometimes accompanied by corruption.
  • During that era, citizens encountered scarcities, substandard products, or attempts to circumvent government regulations.
  • The manner in which the government introduced the import ban on laptops, subsequently revising the deadlines, has evoked familiar concerns about bureaucrats who seem to "act first and inquire later."
  • Nonetheless, proponents of the policy contend that its implementation was long overdue.

How these Restrictions are Different from Regulations in the 1960s-70s?

  • Shift in Circumstances
  • Indian industrial policy of the past yielded moderate outcomes, However, the historical context has undergone a transformation.
  • Factors such as energy availability, logistics, human capital, and global geopolitical dynamics are no longer as constricting for India as they once were.
  • The expanded market size, particularly in certain sectors, grants India greater negotiating power than in the past.
  • Enhancement of Government Capacity:
  • The current imposition of import restrictions is distinct due to the enhancement of government capacity, setting it apart from the circumstances of the 1960s.
  • Those earlier restrictions were significantly more extensive, governing the entire import and production landscape in a way that hindered domestic productive and allocative efficiencies.
  • Altered Objective:
  • Today's objective diverges from simply reducing import reliance; it aims to reshape the import structure to support India's journey towards self-reliance (Aatma Bharat).
  • If the government can effectively communicate and uphold this distinction, the nation may avoid reliving the challenges posed by prior industrial policies."

Importance of Instituting an Industrial Policy in India:

  • While India has witnessed the fruits of liberalization, the reality persists that the country struggled to cultivate a robust manufacturing foundation and experienced premature de-industrialization.
  • Across the globe, no nation has achieved industrialization solely through deregulation. An industrial policy is pivotal for orchestrating a fundamental reconfiguration of the economy's structure.
  • Strategically devised import restrictions can constitute an integral element of such a policy framework.
  • Given the contemporary global landscape, a robust industrial policy is imperative. Various countries are already adopting this approach, and considering the prevailing geopolitics and security concerns, it's crucial for India to formulate a comprehensive industrial policy and place a heightened emphasis on manufacturing."

Suggestions for Developing a Strong Industrial Policy:

  • Balancing Competition and Collaboration:
  • Advocates of an industrial policy assert that India should prioritize the fundamental attributes that enhance competitiveness within an economy.
  • Such a policy can engender favorable external effects, address coordination hurdles, and stimulate agglomeration advantages.
  • Shifting Away from Subsidies and Safeguards:
  • Despite increased state capacity, the dynamics of bureaucratic discretion must not be underestimated, particularly within a context where certain companies receive disproportionate state favoritism.
  • Furthermore, Indian states should progressively transition from reliance on subsidies and moderate safeguards.
  • Embracing Export-Oriented Strategies Over Import Substitution:
  • A noteworthy feature of successful Chinese and East Asian industrial policies was their emphasis on export-driven development.
  • India faces a dual challenge in this regard. Achieving export orientation necessitates an open global trade framework. Yet, global support for this system is waning.
  • India's effectiveness in advocating for an open trade system could be compromised if it resorts to protectionist measures.
  • Thus, the design of India's industrial policy should promote exports rather than replicate import substitution tactics.
  • Minimizing Spectacle
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  • For instance, the current emphasis on the Micron deal, wherein the government contributes 70% of the investment, warrants consideration.
  • Simultaneously, it's crucial for the government to recognize that chip companies are relocating manufacturing to more expensive locales with fewer subsidies.

Moving forward, the government must undertake a meticulous assessment of the nation's unique conditions and capacities. Crafting an effective industrial policy for India involves ensuring that the advantages of laptops extend beyond a specific class.

Nonetheless, it's essential to maintain a perspective that prevents the discourse on industrial policy from being swayed by ostentatious displays, oversimplified theories, or deceptive historical parallels.