MALABAR-2023 (PIB)

  • 11 Aug 2023

What is the News ?

Indian Navy's indigenous frontline warships INS Sahyadri and INS Kolkata will participate in Exercise MALABAR 2023.

Facts About:

  • The MALABAR series of maritime exercises commenced in 1992 as a bilateral exercise between the Indian Navy and US Navy. 
  • Japan joined the Naval Exercises in 2015. Malabar 2020 saw the participation of the Australian Navy.
  • This year marks the 27th edition of MALABAR which is being hosted by Royal Australian Navy (RAN) and will see participation from the US Navy (USN), Japan Maritime Self Defence Force (JMSDF) and the Royal Australian Navy (RAN).
  • INS Sahyadri is the third ship of the indigenously designed and built Project-17 class multi-role stealth frigates.
  • INS Kolkata is the first ship of the indigenously designed and built Project-15A class destroyers.
    1. Both ships have been built at Mazagon Dock Ltd, Mumbai and are fitted with a state-of-the-art array of weapons and sensors to detect and neutralise threats in surface, air and underwater domains.

 

Source: https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1947436

China’s economy slides into deflation (Economic Times)

  • 11 Aug 2023

What is the News ?

Facts About:

China’s recent bout of deflation, marked by a decline in consumer prices for the first time in over two years, has sparked debates about its implications and causes.

  • This article delves into the intricacies of deflation, its potential impact on economic growth, and the unique circumstances driving deflation in China.

Understanding Deflation

  • Deflation Defined: Deflation refers to a sustained decrease in the general price level of goods and services within an economy.
  • Historical Context: Historically, the terms “inflation” and “deflation” were linked to changes in the money supply, with “inflation” representing a rise and “deflation” a fall in money supply.

Concerns Associated with Deflation

  • Economic Slowdown: Many economists view deflation as an indicator of dwindling demand for goods and services, potentially leading to an economic slowdown.
  • Demand-Supply Dynamics: Falling prices may prompt consumers to delay purchases, hampering demand and triggering a ripple effect throughout the economy.
  • Resource Utilization: A certain level of inflation is deemed necessary for optimal resource utilization, ensuring full economic potential is realized.

Varied Perspectives on Deflation

  • Positive Instances: Some economies have experienced deflation during periods of robust growth. Japan witnessed increased real income levels despite persistent deflation.
  • Economic Crises: Deflation can arise during economic crises when cautious spending and resource reallocation occur.
  • Consumer Demand and Prices: Some economists argue that consumer demand dictates prices, rather than the other way around.

China’s Deflation Scenario

  • Policy Measures: China’s central bank maintained low interest rates to stimulate demand amid the post-pandemic recovery.
  • Property Sector Turmoil: China’s pre-pandemic property sector challenges, affecting GDP contribution, may be a root cause of the current deflationary trend.
  • Complex Factors: While liquidity may not be the core issue, comprehensive analysis of money supply and monetary transmission is necessary to determine the underlying cause.

Repercussions of Chinese Deflation

[A] Positive Impacts:

  • Cheaper Imports: If Chinese goods become cheaper due to deflation, it could lead to lower import costs for India, benefiting consumers and businesses that rely on Chinese imports.
  • Lower Input Costs: Reduced prices for raw materials and intermediate goods from China could lower production costs for Indian industries that depend on these inputs.
  • Global Supply Chains: If Chinese deflation reduces the cost of production within global supply chains, Indian businesses integrated into these chains might experience cost savings.
  • Improved Trade Balance: Cheaper Chinese imports can contribute to a more favorable trade balance for India, especially if it leads to reduced import bills.

[B] Negative Impacts:

  • Export Competition: Cheaper Chinese exports due to deflation could increase competition for Indian exports in international markets, potentially affecting certain Indian industries.
  • Import Dumping: A flood of cheap Chinese goods into the Indian market could harm domestic producers, leading to job losses and economic strain.
  • Investment Flows: A slowdown in China’s economy caused by deflation might lead to reduced investor confidence and affect foreign direct investment (FDI) flows to India.
  • Currency Effects: If China’s central bank devalues its currency to boost exports in response to deflation, it could lead to a stronger Indian rupee, impacting India’s export competitiveness.
  • Commodity Prices: Reduced demand for commodities from China due to deflation could lead to lower global commodity prices, affecting Indian exporters of raw materials.

Conclusion 

  • China’s encounter with deflation amidst efforts to boost demand and stabilize its economy presents a multi-faceted challenge.
  • Understanding the nuances of deflation, its interaction with demand dynamics, and China’s unique economic landscape are vital.
  • As China navigates its path forward, policymakers must consider the interplay of factors, including the property sector’s impact and broader economic goals.

 

Source: https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=&ved=2ahUKEwidya2w1qGBAxVcd2wGHTEWAzQQFnoECC0QAQ&url=https%3A%2F%2Fm.economictimes.com%2Fopinion%2Fet-editorial%2Fwhy-chinas-economy-is-down-not-out%2Farticleshow%2F102731901.cms&usg=AOvVaw1udWdqudtF2oR3qve57xGB&opi=89978449

NavIC to link to Aadhaar enrolment devices (The Hindu)

  • 11 Aug 2023

What is the News ?

The Department of Space (DoS) has told the Parliamentary Committee of Science and Technology that the Navigation with Indian Constellation or (NavIC) is going to be integrated into Aadhaar enrolment devices.

Facts About:

About the merger:

  • Need: Currently the Aadhaar enrolment kits that are used to collect and verify personal details are linked to Global Positioning system (GPS).
  • The DoS has conducted successful field trials and is providing technical expertise for the finalisation of procurement specifications for the devices.
  • Overall, the integration of NavIC into Aadhaar enrolment devices will enhance navigation accuracy and provide better disaster management capabilities.
  • Significance:
  • NavIC’s integration will enhance the accuracy and reliability of these devices.

Aadhaar authentication process:

  • The Unique Identification Authority of India (UIDAI) has been created, with the mandate of providing a Unique Identity (Aadhaar) to all Indian residents.
  • The UIDAI provides online authentication using demographic and biometric data.
  • Aadhaar authentication is the process involves Aadhaar Number, along with other attributes, including biometrics, is submitted online to the Aadhaar system for its verification on the basis of information or data or documents available with it.
  • During the authentication transaction, the resident’s record is first selected using the Aadhaar Number and then the demographic/biometric inputs are matched against the stored data which was provided by the resident during enrolment/update process.

How NavIC will ensure data protection?

  • NavIC offers two services:
  • Standard Position Service (SPS) for civilian users and;
  • Restricted Service (RS) for strategic users.
  • These two services are provided in both L5 (1176.45 MHz) and S band (2498.028 MHz).
  • NavIC coverage area includes India and a region up to 1,500 km beyond the Indian boundary.
  • Newer satellites will have an additional band called L1 that will be compatible with civilian use.

Present NavIC uses:

  • The National Disaster Management Agency (NDMA) was already utilising NavIC as an alert dissemination system for major natural disasters like landslips, earthquakes, floods, and avalanches. 
  • The Indian National Centre for Ocean Information System (INCOIS) relies on NavIC to broadcast cyclones, high waves, and tsunamis alert messages to fishermen venturing into the deep sea.

Organizations working with NavIC data:

  • NavIC standards were set by the Bureau of Indian Standards (BIS), Telecom Standards Development Society, India (TSDSI), Telecom Engineering Centre (TEC), Third Generation Partnership Project (3GPP), and Radio Technical Commission for Maritime Services (RTCM), International Electrotechnical Committee (IEC), and International Standards Organisation (ISO).

Concerns with GPS or other global systems:

  • Threat to data security and sovereignty: System like GPS and GLONASS are operated by defence agencies of the respective nations.
  • Breach of personal information: It is possible that the civilian service can be degraded or denied.

 

Source: https://www.thehindu.com/sci-tech/technology/indian-gps-navic-to-link-to-aadhaar-enrolment-devices/article67181022.ece

India, Japan to restart trilateral cooperation with Sri Lanka (The Hindu)

  • 11 Aug 2023

What is the News ?

 Sri Lanka, India and Japan are studying ways of restarting trilateral cooperation on the East Container Terminal (ECT) project in Colombo.

Facts About:

Exploring New Avenues of Collaboration

  • Shared Vision for Indo-Pacific Stability: India and Japan share a vision of a Free Open and Inclusive Indo-Pacific (FOIIP), which they believe benefits all nations in the region. This common vision has provided a basis for renewed cooperation and joint initiatives.
  • Potential Areas for Collaboration: The Pathfinder Foundation's paper highlights potential areas of collaboration, including renewable energy projects, grid connectivity, development of Trincomalee as an oil pipeline hub, and people-centric initiatives like tourism and education.
  • Joint Economic Vision Statement: Leaders from India and Sri Lanka have issued a Joint Economic Vision Statement, setting the stage for collaborative efforts to catalyze economic growth. 
  • While governments will play a role in kickstarting projects, they intend to involve the private sector in investment and execution.
  • Debt restructuring process:India, Japan, and France's collaborative effort in co-chairing a committee for Sri Lanka's debt restructuring process demonstrates the commitment to stabilizing the country's financial situation. This initiative aims to address debt-related challenges and foster economic recovery.

Challenges and Future Prospects

  • Balancing Interests and Lessons from the Past: Officials acknowledge the challenges faced in executing joint projects, given past setbacks. The need to align interests and strategies between India, Japan, and Sri Lanka remains a crucial factor in determining the success of future collaborations.
  • Toward a Resilient Indo-Pacific Partnership: Japan underscores the significance of Japan's partnership with India and Sri Lanka in realizing a Free and Open Indo-Pacific.
  • Japan emphasizes creditor parity, transparency, and debt sustainability in Sri Lanka's debt restructuring process.
  • Role of China: China's involvement in Sri Lanka's infrastructure projects and its status as the country's largest bilateral lender add complexity to the trilateral dynamics. China's investments in Sri Lanka have prompted concerns about debt sustainability and transparency.
  • While India and Japan aim to include China in the creditors' platform for Sri Lanka's debt restructuring process, China's decision to remain an observer highlights the complexities of fostering inclusive cooperation.

Conclusion

The revival of trilateral cooperation marks a crucial step toward promoting stability and development in the Indo-Pacific region. By overcoming challenges and leveraging their collective strengths, India, Japan, and Sri Lanka have the potential to contribute to a more interconnected and prosperous future for the region.

 

Source: https://www.thehindu.com/news/national/india-japan-look-to-restart-trilateral-cooperation-with-sri-lanka-but-with-caution/article67180586.ece

Uniform Civil Code (Indian Express)

  • 11 Aug 2023

What is the News ?

The Kerala Legislative Assembly has unanimously adopted a resolution expressing its concern over the Union Government move to impose a Uniform civil code (UCC).

Facts About:

  • The Kerala Assembly resolution essentially strikes a cautious note that a proposed “UCC could harm the secular nature of the country. “
  • The resolution also talks about federalism – that the Centre could make a unilateral move on the contentious issue without consulting states. 
  • The resolution also argued that, it is critical to note that the Uniform Civil Code was limited to Directive Principles.

What does Constitution say about UCC?

  • The Constitution refers to civil code only in its Directive Principles.
  • Implementation of Directive Principles is not mandatory.
  • The court may order to enforce Fundamental rights. But the Directive Principles of Article 44 of the Constitution cannot be enforced even by the courts.

Can the state legislate on UCC?

  • Article 162 of the Constitution: 
  • The issue of personal laws falls in List III —the Concurrent List of the Seventh Schedule to the Constitution.
  • While subjects in the Union lists fall within the purview of the Parliament, states can legislate on subjects in the State List.
  • For entries in the ‘Concurrent List’, Article 162 of the Constitution gives state governments the power to legislate on subjects where a central law does not occupy the field. 
  • If there is a central law, it automatically gains precedence over the state law on the subject.
  • Entry 5 of Concurrent List: 
  • Also the Entry 5 of the Concurrent lists “Marriage and divorce; infants and minors; adoption; wills, intestacy and succession; joint family and partition; all matters in respect of which parties in judicial proceedings were immediately before the commencement of this Constitution subject to their personal law.
  • This allows states the power to legislate on the subject but only in the absence of a central law.

Do states can bring their own personal laws again?

The answer to it is NO, due to following cases;

  • State laws on the issues mentioned in Entry 5 of the Concurrent List will not have precedence over central legislation.
  • On specific areas not covered by central legislation, states can legislate.
  • But central legislation already covers all aspects of marriage, divorce, inheritance and succession.

Supreme Court’s stand:

  • The Court mentioned that Article 162 of the Constitution indicates that the executive power of a State extends to matters with respect to which the Legislature of the State has power to make laws.
  • In view of the provisions of Entry 5 of the Concurrent List of the Seventh Schedule, the constitution of a Committee per se cannot be challenged as ultra vires.

 

Source: https://indianexpress.com/article/explained/explained-law/kerala-assembly-resolution-against-uniform-civil-code-8885558/#:~:text=The%20Kerala%20Legislative%20Assembly%20on,a%20common%20personal%20law%20code.

Bill on Election Commission members’ Appointments (Indian Express)

  • 11 Aug 2023

What is the News ?

A Bill is set to be introduced in the Rajya Sabha with the view of overturning the effect of the Supreme Court’s (SC) verdict on the appointment of the Chief Election Commissioner (CEC) and Election Commissioners (ECs).

Facts About:

  • The Bill seeks to establish a committee of the Prime Minister, the Leader of Opposition in the Lok Sabha and a Cabinet Minister nominated by the PM for selecting members of the Election Commission of India (ECI).
  • Current Procedure: Currently, the Law Minister suggests a pool of suitable candidates to the Prime Minister for consideration.
    • The President makes the appointment on the advice of the PM.
  • As per the Bill, a Search Committee headed by the Cabinet Secretary and comprising two other members, not below the rank of Secretary to the government, having knowledge and experience in matters relating to elections, shall prepare a panel of five persons who can be considered for appointment.
  • Then, as per the Bill, a Selection Committee consisting of the Prime Minister, the Leader of Opposition in the Lok Sabha, and a Union Cabinet Minister to be nominated by the Prime Minister will appoint the CEC and other ECs.

Present structure to appoint CEC and ECs:

  • Under Article 324 (2), the President appoints the CEC and other ECs.
  • The President makes the appointment on the advice of the Union Council of Ministers headed by the Prime Minister.
  • The Constitution does not prescribe any qualifications, academic or otherwise, for appointment to these offices.
  • Tenure:
  • The tenure of office and the conditions of service of all the commissioners is determined by the President.
  • The tenure of commissioners is 6 years or up to the age of 65, whichever is earlier.
  • The CEC and the two other ECs have the same powers and emoluments, including salaries, which are the same as a Supreme Court judge.
  • All three commissioners have the same right of taking a decision. In case of a difference of opinion amongst the three members, the matter is decided by the Commission by a majority.

Process of removal:

  • Article 324 of the Constitution of India mentions the provisions to safeguard and ensure the independent and impartial functioning of the Election Commission.
  • The CEC is provided with security of tenure. He cannot be removed from his office except in the same manner and on the same grounds as a judge of the Supreme Court.
  • Any other election commissioner or a regional commissioner cannot be removed from office except on the recommendation of the CEC.

Supreme Courts’ Judgment:

  • On March 2, a five-judge bench of the Supreme Court unanimously ruled that a high-power committee consisting of the Prime Minister, Leader of Opposition in Lok Sabha, and the Chief Justice of India must pick the CEC and ECs.
  • The judgement by a bench came in 2015, challenging the constitutional validity of the practice of the Centre-appointed members of the Election Commission.
  • According to the judgement, the SC has now given the Opposition and the judiciary a say in the matter, ruling that the CEC and ECs must be appointed by the President on the advice of a committee comprising the PM, Leader of Opposition in Lok Sabha, and the Chief Justice of India.
  • Also, in 2018, a two-judge bench of the SC referred the case to a larger bench since it required a close examination of Article 324 of the Constitution, which deals with the role of a Chief Election Commissioner.

Debate around appointment of CEC and ECs:

  • Article 324(2) reads that “The Election Commission shall consist of the Chief Election Commissioner and such number of other Election Commissioners, if any, as the President may from time-to-time fix and the appointment of the Chief Election Commissioner and other Election Commissioners shall, subject to the provisions of any law made in that behalf by Parliament, be made by the President.”
  • The Parliament has the power to nullify the effect of a Court ruling by addressing the concerns flagged in the judgment.
  • In this case, the arrangement prescribed by the Supreme Court was specifically because the Court noted that there was a “legislative vacuum.” Filling that vacuum is well within the purview of the Parliament.
  • However, the idea of an independent body that conducts elections permeates through the judgement.
  • The Court repeatedly stated that to be the objective of the framers of the Constitution.
  • The composition of the Selection Committee in the Bill raises questions on whether the process is now independent or still rigged in favour of the Executive.

 

Source:  https://indianexpress.com/article/explained/explained-law/bill-election-commission-members-appointment-process-explained-8885676/#:~:text=The%20Centre%27s%20Bill%20seeks%20to,Commission%20of%20India%20(ECI).