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Citizenship and Related Issues

Clause 6 of the Assam Accord

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Assam Accord

Mains level: NRC and CAA debate

In February, a government-appointed committee had submitted its recommendations for implementation of Clause 6 of the Assam Accord, a key provision that has been contentious for decades.

Must read:

https://www.civilsdaily.com/burning-issue-assam-nrc/

What is Clause 6?

  • It is a part of the Assam Accord which came at the culmination of a movement against immigration from Bangladesh.
  • It reads: “Constitutional, legislative and administrative safeguards, as may be appropriate, shall be provided to protect, preserve and promote the cultural, social, linguistic identity and heritage of the Assamese people.”
  • For recognition as citizens, the Accord sets March 24, 1971, as the cutoff.
  • As immigrants up to the cutoff date would get all rights as Indian citizens, so Clause 6 was inserted to safeguard the socio-political rights and culture of the “indigenous people of Assam”.

What has happened since?

  • Several committees have been set up over the years to make recommendations on the implementation of Clause 6.
  • None of them made headway on the provision’s contentious issues, however, until the latest CAA move.
  • Following widespread protests against the CAA, the government gave an urgent push to Clause 6 to pacify the Assamese community.

Recommendations of the recent report

  • Headed by retired High Court judge Biplab Kumar Sarma the committee was asked to fast-track its report.
  • It submitted its report in Feb but the government did not make its contents public.
  • But some Assamese activists independently made the contents public.
  • Its brief was to define the “Assamese people” and suggest measures for the safeguard of their rights. The definition of “Assamese people” has been a subject of discussion for decades.

Key propositions

The committee has proposed that the following be considered Assamese people for the purpose of Clause 6. All citizens of India who are part of:

  • Assamese community, residing in the Territory of Assam on or before January 1, 1951; or
  • Any indigenous tribal community of Assam residing in the territory of Assam on or before January 1, 1951; or
  • Any other indigenous community of Assam residing in the territory of Assam on or before January 1, 1951; or
  • All other citizens of India residing in the territory of Assam on or before January 1, 1951; and
  • Descendants of the above categories

Why 1951?

  • During the Assam agitation, the demand was for detection and deportation of migrants who had illegally entered Assam after 1951.
  • The Assam Accord, however, set the cutoff on March 24, 1971. The National Register of Citizens (NRC) was updated based on this cutoff.
  • Clause 6 is meant to give the Assamese people certain safeguards, which would not be available to migrants between 1951 and 1971.
  • If the recommendation is accepted, those who migrated between 1951 and 1971 would be Indian citizens, but they won’t be eligible for safeguards meant for Assamese people”.

What are these safeguards?

Among various recommendations, the key is the reservation of seats in Parliament, Assembly and local bodies; reservation in jobs; and land rights. The panel recommends the Assamese people be given:

  • 80 to 100% reservation in the parliamentary seats of Assam, Assembly seats and local body seats be reserved for the “Assamese people”.
  • 80 to 100% of Group C and D level posts (in Assam) in central government/semi-central government/central PSUs/private sector
  • 80 to 100% of jobs under Government of Assam and state government undertakings; and 70 to 100% of vacancies arising in private partnerships
  • Land rights, with restrictions imposed on transferring land by any means to persons other than “Assamese people”.

Several other recommendations deal with language and cultural and social rights. On language, it recommends:

  • Assamese language shall continue to be official language throughout the state with provisions for use of local languages in Barak Valley, Hill Districts and the Bodoland Territorial Area Districts.
  • Mandatory provision of an Assamese language paper for recruitment in state government services with alternatives for Barak Valley districts, BTAD and Hills Districts.
  • To set up Academies for all-round development of each of the indigenous tribal languages including, Bodo, Mishing, Karbi, Dimasa, Koch-Rajbongshi, Rabha, Deuri, Tiwa, Tai and other indigenous languages.

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Women empowerment issues – Jobs,Reservation and education

Hindu Women’s Inheritance Rights

Note4Students

From UPSC perspective, the following things are important :

Prelims level: HUF

Mains level: Women's property right

The Supreme Court has expanded a Hindu woman’s right to be a joint legal heir and inherit ancestral property on terms equal to male heirs.

What is the ruling?

  • The SC Bench ruled that a Hindu woman’s right to be a joint heir to the ancestral property is by birth and does not depend on whether her father was alive or not when the law was enacted in 2005.
  • The Hindu Succession (Amendment) Act, 2005 gave Hindu women the right to be coparceners or joint legal heirs in the same way a male heir does.
  • Since the coparcenary (heirship) is by birth, it is not necessary that the father coparcener should be living as on 9.9.2005, the ruling said.

What is the 2005 law?

  • The Mitakshara school of Hindu law codified as the Hindu Succession Act, 1956 governed succession and inheritance of property but only recognised males as legal heirs.
  • The law applied to everyone who is not a Muslim, Christian, Parsi or Jew by religion.
  • Buddhists, Sikhs, Jains and followers of Arya Samaj, Brahmo Samaj are also considered Hindus for the purposes of this law.
  • In a Hindu Undivided Family, several legal heirs through generations can exist jointly.

Background

  • Traditionally, only male descendants of a common ancestor along with their mothers, wives and unmarried daughters are considered a joint Hindu family.
  • The legal heirs hold the family property jointly.
  • Women were recognised as coparceners or joint legal heirs for partition arising from 2005.
  • The 174th Law Commission Report had also recommended this reform in Hindu succession law.
  • Even before the 2005 amendment, Andhra Pradesh, Karnataka, Maharashtra and Tamil Nadu had made this change in the law, and Kerala had abolished the Hindu Joint Family System in 1975.

What did the law bring in?

  • Section 6 of the Act was amended that year to make a daughter of a coparcener also a coparcener by birth “in her own right in the same manner as the son”.
  • The law also gave the daughter the same rights and liabilities “in the coparcenary property as she would have had if she had been a son”.
  • The law applies to ancestral property and to intestate succession in personal property — where succession happens as per law and not through a will.

How did the case come about?

  • While the 2005 law granted equal rights to women, questions were raised whether the law applied retrospectively and if the rights of women depended on the living status of their father.
  • Different benches of the Supreme Court had taken conflicting views on the issue. Different High Courts had also followed different views of the top court as binding precedents.
  • The Prakash v Phulwati (2015) case held that the benefit of the 2005 amendment could be granted only to “living daughters of living coparceners” as on September 9, 2005 (the date when the amendment came to force).
  • In February 2018 a bench headed by Justice A K Sikri held that the share of a father who died in 2001 will also pass to his daughters as coparceners during the partition of the property as per the 2005 law.

The present case

  • These conflicting views led to a reference to a three-judge Bench in the current case.
  • The ruling now overrules the verdicts from 2015 and April 2018.
  • It settles the law and expands on the intention of the 2005 legislation to remove the discrimination as contained in section 6 of the Hindu Succession Act, 1956.
  • It gave equal rights to daughters in the Hindu Mitakshara coparcenary property as the sons have.

What was the government’s stand?

  • The solicitor argued in favour of an expansive reading of the law to allow equal rights for women. He referred to the objects and reasons of the 2005 amendment.
  • The Mitakshara coparcenary law not only contributed to discrimination on the ground of gender but was oppressive and negated the fundamental right of equality guaranteed by the Constitution.

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Civil Services Reforms

[pib] Appointment of the UPSC Chairman

Note4Students

From UPSC perspective, the following things are important :

Prelims level: UPSC and other constitutional bodies

Mains level: NA

The President of India has appointed Pradeep Kumar Joshi as Chairman of Union Public Service Commission (UPSC).

Try this PYQ:

Q.Consider the following statements:

  1. The Executive Power of the Union of India is vested in the Prime Minister.
  2. The Prime Minister is the ex-officio Chairman of the Civil Services Board.

Which of the statements given above is/are correct? (CSP 2015)

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Backgrounder: UPSC

  • Established on 1 October 1926 as Public Service Commission, it was later reconstituted as Federal Public Service Commission by the GoI Act 1935; only to be renamed as today’s UPSC after the independence.
  • The UPSC is India’s premier central recruiting agency responsible for appointments to and examinations for All India services and group A & group B of Central services.
  • The Department of Personnel and Training is the central personnel agency in India.
  • It is also required to be consulted by the Government in matters relating to the appointment, transfer, promotion and disciplinary matters.

Appointments to the UPSC

  • As per Article 316 of the constitution, the Chairman and other members of UPSC shall be appointed by the President.
  • In case the office of the Chairman becomes vacant his duties shall be performed by one of the other members of the Commission as the President may appoint for the purpose.
  • Under Art. 318, the President is empowered to determine the number of members of the Commission and their conditions of service.
  • As per Art 319, a person who holds office as Chairman shall, on the expiration of his term of office, be ineligible for re-appointment to that office.
  • But, a member other than the Chairman shall be eligible for appointment as the Chairman of the UPSC.
  • Also, the Chairman of a State PSC shall be eligible for appointment as the Chairman or any other member of the UPSC.

Removal of members/chairman

  • As per Art. 317, the Chairman or any other member of a UPSC shall only be removed from their office by order of the President on the ground of “misbehaviour” after the Supreme Court inquiry report.
  • The President may suspend the Chairman or other member of the Commission until a report of the Supreme Court is received.

Distinguishing features

  • The commission reports directly to the President and can advise the Government through him.
  • Although, such advice is not binding on the Government.
  • Being a constitutional authority, UPSC is amongst the few institutions which function with both autonomy and freedom, along with the country’s higher judiciary and lately the Election Commission.

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Digital India Initiatives

[pib] Krishi Megh: A Cloud-based Data Recovery Centre

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Cloud Storage, Krishi Megh

Mains level: NA

Union Minister of Agriculture & Farmers’ Welfare has launched the Krishi Megh Data Recovery Centre.

Do not get confused with the name ‘Krishi Megh’. One might mistakenly relate it to some weather forecasting tool of the Indian Meteorological Department.

Krishi Megh

  • The Krishi Megh has been set up at National Academy of Agricultural Research Management (NAARM), Hyderabad.
  • It has been set up under the National Agricultural Higher Education Project (NAHEP), funded by both the government and World Bank.
  • It has been built to mitigate the risk, enhance the quality, availability and accessibility of e-governance, research, extension and education in the field of agriculture in India.
  • Currently, the main data centre of the Indian Council of Agricultural Research (ICAR) is at the Indian Agricultural Statistics Research Institute (IASRI) in New Delhi.

Back2Basics: Cloud Storage

  • It is a cloud computing model that stores data on the Internet through a cloud computing provider who manages and operates data storage as a service.
  • It is delivered on demand with just-in-time capacity and costs, and eliminates buying and managing your own data storage infrastructure.
  • It gives agility, global scale and durability, with “anytime, anywhere” data access.

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Foreign Policy Watch: India-Afghanistan

In news: Loya Jirga

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Loya Jirga

Mains level: Taliban

The Afghan Loya Jirga approves release of 400 ‘hard-core’ Taliban prisoners.

The term seems peculiar. We may expect a prelim question on the same.

What is Loya Jirga?

  • A Loya Jirga is a special type of jirga, or legal assembly, in Pashtunwali, the traditional code of laws of the Pashtun people.
  • It is mainly organized for choosing a new head of state in case of sudden death, adopting a new constitution, or to settle national or regional issue such as war.
  • It predates modern-day written or fixed laws and is mostly favoured by the Pashtun people but to a lesser extent by other nearby groups that have been influenced by Pashtuns (historically known as Afghans).
  • In Afghanistan, Loya Jirgas have been reportedly organized since at least the early 18th century when the Hotaki and Durrani dynasties rose to power.

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Goods and Services Tax (GST)

Making up for shortfalls in GST collection

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Various provision under GST

Mains level: Paper 3-GST compensation cess and issues

The article deals with the issue of shortfall in the GST compensation cess and the challenge Central government faces to pay the promised compensation to the states.

Background of the cess

  • GST subsumed several taxes, including those which were the preserve of the States.
  • Therefore it required an amendment to the Constitution of India.
  • The amendment affected the Seventh Schedule, so it required ratification by the legislatures of half the States.
  • Before the GST, States exporting goods to other States collected a tax.
  • But the GST is a destination-based tax, i.e., the State where the goods are sold receive the tax.
  • This implies that manufacturing States would lose out while consuming States would benefit.
  • So, in order to convince manufacturing States to agree to GST, a compensation formula was created.
  • Under which States were promised compensation for loss of revenue for a period up to five years.
  • The Act for compensation to states assumed that the GST revenue of each State would grow at 14% every year, from the amount collected in 2015-16.
  • This scheme is valid for five years, i.e., till June 2022.

Compensation cess fund

  • A compensation cess fund was created from which States would be paid for any shortfall.
  • An additional cess would be imposed on certain items and this cess would be used to pay compensation.
  • The Act states that the cess collected and “such other amounts as may be recommended by the [GST] Council” would be credited to the fund.
  • In the first two years of this scheme, the cess collected exceeded the shortfall of States.
  • In the third year, 2019-20, the fund fell significantly short of the requirement.

The problem and its source

  •  A key source of the problem is that the 2017 Act guaranteed a tax growth rate of 14%, which is unachievable this year.
  • The 14% target was too ambitious to start with.
  • Given the government’s inflation target at 4%, this implied a real GDP growth plus tax buoyancy of 9%.
  • But, the Central government is constitutionally bound to compensate States for loss of revenue for five years.

Solution to the problem

1) The Constitution could be amended to reduce the period of guarantee to three years thus ending June 2020.

  • But most States would be reluctant to agree to this proposal.
  • It could also be seen as going back on the promise made to States.

2) The Central government could fund this shortfall from its own revenue.

  •  The Centre’s finances are stretched due to shortfall in its own tax collection combined with extra expenditure to manage the health and economic crisis.

3) The Centre could borrow on behalf of the cess fund.

  • The tenure of the cess could be extended beyond five years until the cess collected is sufficient to pay off this debt and interest on it.

4) the Centre could convince States that the 14% growth target was always unrealistic.

  • If the Centre can negotiate with States through the GST Council to reset the assured tax level, it could then bring in a Bill in Parliament to amend the 2017 Act.

Consider the question “What were the reasons for making provisions under GST for paying the states compensation for tax revenue shortfall? What are the implications of the provision for the Central government?”

Conclusion

The Constitution makes it obligatory for the Centre to make up for shortfall by the States. The cess collected will not be sufficient for this purpose. The GST Council, which is a constitutional body with representation of the Centre and all the States, should find a practical solution.

B2BASICS

Source: https://www.thehindu.com/opinion/op-ed/making-up-for-shortfalls-in-gst-collection/article32319744.ece

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Foreign Policy Watch: India-United States

A new direction for India-U.S. ties

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much

Mains level: Paper 2- India-U.S. ties

This article analyses what the new shift in the India-U.S. ties will require for the mutual benefit.

Following 12 factors would influence the depth and longevity of the India-U.S. ties.

1) Outcome of the  U.S. Presidential elections

  • The success of India’s new bonding with the U.S. will depend on the outcome of the U.S. Presidential elections.
  • The Democratic party candidate with the Left wing and liberals in the U.S. has been highly critical of the Citizenship (Amendment) Act.

2) Need to build trust with the U.S.

  • India purchased of the S-400 air defence missile system from Russia disregarding the U.S. concerns.
  • India refused to send Indian troops to Afghanistan.
  • We need to build trust with the U.S. that we will give to the U.S. as good as it gives us.
  • For this structuring we must realise that India-U.S. relations require give and take on both sides.
  • What India needs to take today is for dealing with the Ladakh confrontation with China.
  • India needs U.S. hardware military equipment.

3)  Fighting the U.S. enemy in neighbourhood

  • The U.S. needs India to fight her enemies in the neighbourhood such as in Afghanistan.
  • India should send two divisions gradually to Afghanistan and relieve U.S. troops to go home

4) Intelligence sharing and cooperation

  • India needs the support of the U.S. and its ally, Israel, in cyberwarfare, satellite mappings of China and Pakistan.
  • There is a need for sharing intercepts of electronic communication, hard intelligence on terrorists, and controlling the military and the Inter-Services Intelligence in Pakistan.

5) Developing naval bases

  • India needs the U.S. to completely develop the Andaman & Nicobar, and also the Lakshadweep Islands as a naval and air force base.
  • These naval bases can be used by the U.S  and shared along with its allies such as Indonesia and Japan.

6) Economic relations and India’s concerns

  • The economic relations must be based on macroeconomic commercial principles.
  • Free, indiscriminate flow of U.S. foreign direct investment (FDI) is not in India’s national interest.

7) Technology sharing

  • India needs technologies such as thorium utilisation, desalination of sea water, and hydrogen fuel cells.

8) U.S. should allow import of agricultural product

  • The U.S. must allow India’s exports of agricultural products including Bos indicus milk, which are of highly competitive prices in the world.

9) FDI in India

  • FDI should be allowed into India selectively from abroad, including from the U.S.
  • FDI in India should be based on the economic theory of comparative advantage and not on subsidies and gratis.

10) Tariffs

  • Tariffs of both India and the U.S. should be lowered, and the Indian rupee should be gradually revalued to ₹35 to a dollar.
  • Later, with the economy picking up, the rupee rate should go below 10 to the dollar.

11) Stay away from certain issues

  •  India should not provide the U.S. with our troops to enter Tibet, or be involved in the Hong Kong and Taiwan issue.
  • There is always a possibility of a leadership change in China.
  • Thus, China’s policy changed very favourably towards India.
  • In the cases of Tibet, Taiwan, and Hong Kong, we have made explicit agreements.
  • In the case of Tibet, two formal treaties were signed by Nehru (1954) and A.B. Vajpayee (2003).

12) Trilateral commitment to world peace

  • In the long run, India, the U.S., and China should form a trilateral commitment for world peace provided Chinese current international policies undergo a healthy change.

Consider the question “What are the factors influencing the India-U.S. ties? Suggest the pathway to address the issues that hamper the deepening of India-U.S. ties.”

Conclusion

Both countries need to recognise each other’s concern and work towards the deepening of the ties for the mutual benefit and with a view to dealing with the challenges confronting both the countries.

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Foreign Policy Watch: India-China

What India should consider about the proposition to isolate China

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much

Mains level: Paper 2- India-China relations

The economic grip China exerts on the world protects it from the threat of isolation. This article examines this issue and its implications for India.

Worsening U.S.-China ties and implications for other countries

  • After years of cooperating with one another, the U.S. and China are currently at the stage of confrontation.
  • Both are seeking allies to join their camps.
  • This places several countries in Asia, in a difficult position as most of them, loathe to take sides.
  • The U.S. may not necessarily be the first choice for many countries of Asia and the Asia-Pacific region.
  • In the case of China, it is clearly more feared than loved.

China’s aggression

  •  Beijing’s virtual takeover of Hong Kong has only confirmed what had long been known about China’s intentions.
  • In March-April this year, China further stepped up its aggressive actions, renaming almost 80 geographical features in the region as an index of Chinese sovereignty.
  •  Taiwan, Japan, Vietnam, Indonesia and South Korea have all complained about China’s menacing postures in their vicinity.

How countries are resisting China

  • Hardly any country in Asia is willing to openly confront China, and side with the U.S.
  • East Asian countries explain that China was always known to be over-protective of the South China Sea.
  • And China consider South China Sea a natural shield against possible hostile intervention by outside forces inimical to it.
  • No U.S. assurance and Chinese aggression has been enough to make countries in the region openly side with the U.S. and against China.

China’s economic grip and lessons for India

  • Despite a series of diktats from Washington to restrict economic and other relations, China remains unfazed.
  • China seems confident that its stranglehold on the global economy ensures that it does not face any real challenge.
  • It would be wise for India to recognise this.
  • It is equally necessary to realise how fickle some of these countries can be when it comes to economic issues.
  •  At a recent meeting in Washington Australia (a member of the Quad) made it clear that China is important for Australia.
  • Likewise, the U.K.’s Secretary of State for Foreign and Commonwealth Affairs, recently stated in its Parliament, that the U.K. wants a positive relationship with China.
  • It is evident that few nations across the world are willing to risk China’s ire because of strong economic ties.

India’s relations with neighbouring countries: concerns

  • India’s relations with Nepal, meanwhile, have hit a roadblock over the Kalapani area.
  • In Sri Lanka, the return of the Rajapaksas to power after the recent elections does not augur too well for India-Sri Lanka relations.
  • The strain in India-Bangladesh relations is a real cause for concern since it can provide a beachhead against Chinese activities in the region.

Growing Chinese presence in India’s sphere of influence

  •  In July, the Chinese Foreign Minister organised a virtual meeting of the Foreign Ministers of Nepal, Afghanistan and Pakistan.
  • In this meeting, China proposed economic corridor plan with Nepal, styled as the Trans-Himalayan Multi-Dimensional Connectivity Network.
  • China has also made headway in Iran to an extent, again at India’s expense.

Conclusion

Geo-balancing is not happening to China’s disadvantage. This lesson must be well understood when India plan its future strategy.

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Tax Reforms

Increasing dependence on indirect taxes and issues with it

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Direct and indirect taxes

Mains level: Paper 3- Increasing proportion of indirect taxes in India and issues with it

India, with a tax-GDP ratio of 10.9 per cent in 2019 needs an overhaul of its tax system. This article analyses India’s growing dependence on indirect taxes and its implications for the poor.

Important changes in direct taxes

  • The wealth tax was abolished in 2016.
  • Wealth tax was replaced by a 2 per cent surcharge on super-rich individuals with taxable income of over Rs 10 crore.
  • But the government rolled back the increase in surcharge in 2019.
  • Corporate taxes were slashed from 30 per cent to 22 per cent to attract foreign investors and induce Indian companies to invest.
  •  Cuts in corporate tax that have resulted in a revenue loss of Rs 1.5 lakh crore have contributed to making the state poor.

Increasing indirect taxes and cess

  • The share of indirect taxes has increased by up to 50 per cent of the gross tax revenue in FY2019 from 43 per cent in FY2011.
  • The combined share of customs and excise duties and value-added tax reached an all-time high of 10.5 per cent of GDP.
  • This high was following a three-year-long steady increase in customs or excise duty on commonly used goods, such as petroleum products, metals and sugar, automobiles and consumer durables.
  • This is also when the service tax was hiked steadily to 18 per cent under GST from 12.4 per cent in 2014.
  • Swachh Bharat cess and Krishi Kalyan cesses were imposed in addition to GST.
  • The permanent nature of these cesses has been widely opposed by the states and criticised by the CAG.
  • CAG has pointed out the lack of transparency and incomplete reporting in accounts on the utilisation of amounts collected under cesses.
  • All of this is troubling because indirect taxes often penalise the poor and the middle class more than the rich.

Case for the wealth tax

  • High tax rates on the wealthy in Europe have played a key role in ensuring a strong social security net for the poor.
  • This successful example should encourage India to consider the rationale for a wealth tax.
  • Higher taxes on the super-rich could be used for cash transfers and a fiscal stimulus, that, in India, at 1 per cent of GDP each, have been negligible so far.
  • A wealth tax, a COVID-19 cess on the super-rich and a surcharge on the super-rich for their income from listed equity shares are critical for mitigating the current situation.

Issues with such policy

  • Cuts in corporate taxes, increased indirect tax revenues, decreased capital expenditure and practically no change in revenue expenditure on health and education show that India’s taxation policy is more business-friendly than pro-poor.
  • This is happening at a time when a supply-side oriented approach to the economy is counter-cyclical.
  • Faced with increased expenditure amid pandemic Centre increased the duty on fuel by a record Rs 10 per litre on petrol when global crude prices have been falling.
  • This speaks of the government’s increased dependency on indirect tax-based revenues.

Examine the implications of India’s growing dependence on indirect tax revenue? Suggest the measures to reduce such dependence.

Conclusion

COVID-19 may be a blessing in disguise if it allows India to reform its tax system in order to make it work towards inclusive growth and sustainable development rather than targeting only investment-led economic growth.

bACK 2 BASICS
GO THROUGH THE ARTICLE BELOW FOR MORE INFORMATION ON TAXATION:

Taxation in India: Classification, Types, Direct tax, Indirect tax

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Trade Sector Updates – Falling Exports, TIES, MEIS, Foreign Trade Policy, etc.

What is Balance of Payments?

Note4Students

From UPSC perspective, the following things are important :

Prelims level: BoP, BoT, Current Account

Mains level: BoP Crisis

India’s balance of payments this year is going to be “very very strong” on the back of significant improvement in exports and a fall in imports said the Commerce and Industry Ministry.

Try this PYQ:

Q.In the context of India, which of the following factors is/are contributor/contributors to reducing the risk of a currency crisis? (CSP 2019)

  1. The foreign currency earnings of India’s IT sector
  2. Increasing the government expenditure
  3. Remittances from Indians abroad

Select the correct answer using the code given below.

(a) 1 only

(b) 1 and 3 only

(c) 2 only

(d) 1, 2 and 3

Balance of Payment

  • BOP is the oldest and the most important statistical statement for any country.
  • In a nutshell BOP of a country is “a systematic record of all economic transactions between the residents of one country with the residents of the other country in a financial year”.
  • Economic Transactions include all the foreign receipts and payments made by a country during a given financial year.
  • Foreign receipts include all the earnings and borrowings by a country from the other countries.

Read the complete thread, here, at:

India’s Balance of Payments: Current Account, Capital Account, Goods and Services Account

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Foreign Policy Watch: India-Pakistan

Back in news: Indus Water Treaty (IWT)

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Indus River Systems

Mains level: Indus Water Treaty and its significance

India has refused a request by Pakistan to hold a meeting on issues around the Indus Water Treaty (IWT) at the Attari check post near the India-Pakistan border.

The IWT has been in existence since 1960, and reached a flash point in the aftermath of the Uri attacks in 2016 with PM declaring that “blood and water couldn’t flow together”.

About Indus Waters Treaty, 1960

  • The IWT is a water-distribution treaty between India and Pakistan, brokered by the World Bank signed in Karachi in 1960.
  • According to this agreement, control over the water flowing in three “eastern” rivers of India — the Beas, the Ravi and the Sutlej was given to India
  • The control over the water flowing in three “western” rivers of India — the Indus, the Chenab and the Jhelum was given to Pakistan
  • The treaty allowed India to use western rivers water for limited irrigation use and unrestricted use for power generation, domestic, industrial and non-consumptive uses such as navigation, floating of property, fish culture, etc. while laying down precise regulations for India to build projects
  • India has also been given the right to generate hydroelectricity through the run of the river (RoR) projects on the Western Rivers which, subject to specific criteria for design and operation is unrestricted.

Talks stalled on key projects

  • Among the key points on the table was evolving a procedure to solve differences on technical aspects governing the construction of the Ratle run-of-the-river (RoR) project on the Chenab in the Kishtwar district.
  • India has called for the appointment of a ‘neutral’ party while Pakistan favours a Court of Arbitration to agree upon a final resolution on the design parameters of this hydropower project.
  • According to the IWT, India has the right to build RoR projects on the three ‘western’ rivers — the Chenab, Jhelum and Indus — provided it does so without substantially impeding water flow in Pakistan downstream.
  • Pakistan believes that the project’s current design does pose a serious impediment and has told the World Bank that it wants a Court of Arbitration (CoA) set up to decide on the issue.
  • India says this is only a technical issue and mutually solvable.

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Defence Sector – DPP, Missions, Schemes, Security Forces, etc.

What is the Negative Imports List for Defence?

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Negative Import List

Mains level: Defence manufacturing promotion measures

The Defence Ministry announced a list of 101 items that it will stop importing.

Try this question for mains:

Q.Being one of the top importers of defence equipment India is well placed to enhance its domestic manufacturing capacity of defence equipment. Yet, India lacks it after repeated attempts to achieve it. Examine the reasons for this and suggest measures to overcome this anomaly.

Negative Imports List

  • The negative list essentially means that the Armed Forces—Army, Navy and Air Force—will only procure all of these 101 items from domestic manufacturers.
  • The manufacturers could be private sector players or Defence Public Sector Undertakings (DPSUs).

Why such a decision?

  • Reduce imports: As per the Stockholm International Peace Research Institute, which tracks defence exports and imports globally, India has been the second-largest importer between 2014 and 2019 with US$ 16.75 billion worth of imports.
  • Boost domestic industry: By denying the possibility of importing the items on the negative list, the domestic industry is given the opportunity to step up and manufacture them for the needs of the forces.
  • Boost exports: The government has been hoping that the defence manufacturing sector can play a leading role in boosting the economy, not just for the domestic market, but to become an exporter as well.

Items included in the negative list

The items mentioned in the negative imports list include:

  • water jet fast attack craft to survey vessels, pollution control vessels, light transport aircraft, GSAT-6 terminals, radars, unmanned aerial vehicles, to certain rifles, artillery guns, bulletproof jackets, missile destroyers, etc.

Impact of the move

  • The items in the list are of proven technologies and do not involve any critical or cutting-edge technology for a next-generation weapon system or platform.
  • Little benefits for domestic players in short-run: Against each of these items are mentioned a year when import embargo would kick in, leading to apprehensions that demands will be placed with foreign vendors until then, leaving very little for domestic producers.
  • The biggest challenge for the government and the armed forces will be to keep this commitment to domestic producers in the event of an operational requirement.

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Digital India Initiatives

Submarine Cable Connectivity to Andaman and Nicobar Islands

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Optical fibre cables and their working, AandN Islands

Mains level: Digital India outreach in AandN Islands

PM has launched the submarine Optical Fibre Cable (OFC) connecting Andaman & Nicobar Islands to the mainland.

Try this PYQ:

Q. Consider the following statements regarding optical fibres:

  1. A layer called the cladding, which has a refractive index more than that of the core, surrounds the core of the optical fibre.
  2. Light is propagated in an optical fibre by refraction and internal reflection.

Which of the above statements is/are correct?(CSP 2010)

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

What is a submarine communications cable?

  • A submarine communications cable is a cable laid on the seabed between land-based stations to transmit telecommunication signals across stretches of ocean and sea.
  • The optical fibre elements are typically individually coated with plastic layers and contained in a protective tube suitable for the environment where the cable will be deployed.
  • Compared to satellites, using internet connection through submarine cables is more reliable, cost-efficient and of large capacity.

About the project

  • About 2,300 km of submarine optical fibre cable (OFC) has been laid at a cost of about Rs 1,224 crore to provide better connectivity in the UT.
  • The project envisages better connectivity from Chennai to Port Blair and seven other Islands — Swaraj Deep (Havelock), Long Island, Rangat, Hutbay (Little Andaman), Kamorta, Car Nicobar and Campbell Bay (Great Nicobar).
  • The project is funded by the government through the Universal Service Obligation Fund under the ministry of communications.
  • The foundation stone for the project was laid by PM Modi in December 2018 at Port Blair.

Expected outcomes

  • The OFC will enable the delivery of faster and more reliable mobile and landline telecom services to Andaman & Nicobar Islands, at par with other parts of India.
  • The submarine optical fibre cable link will deliver bandwidth of 2 x 200 Gigabits per second (Gbps) between Chennai and Port Blair, and 2 x 100 Gbps between Port Blair and the other islands.
  • 4G mobile services, which were constrained due to limited backhaul bandwidth provided via satellite, will also see a major boost.

Benefits of the project

  • Better connectivity in the region will facilitate the delivery of e-governance services such as telemedicine and tele-education.
  • E-commerce: Small enterprises will benefit from opportunities in e-commerce, while educational institutions will utilise the enhanced availability of bandwidth for e-learning and knowledge sharing.
  • Business Process Outsourcing services and other medium and large enterprises too also benefit from better connectivity.
  • Low cost internet:The internet bills in Andaman and Nicobar will also come down substantially.

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Air Pollution

[pib] Himalayan Geothermal Springs release huge amount of carbon dioxide in the atmosphere

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Geothermal springs

Mains level: Not Much

The Himalayas, which hosts about 600 geothermal springs needs to be considered while estimating emissions to the carbon cycle and thereby to global warming says, Indian researchers.

Note the following hot springs in India:

1) Panamik in Nubra valley

2) Kheer Ganga in Kullu, Himachal

3) Manikaran Sahib, Himachal

4) Tattapani, Chhattisgarh

5) Gaurikund, Uttarakhand

6) Yumthang, Sikkim

7) Reshi, Sikkim

Geothermal springs

  • Geothermal or Hot springs are heated by shallow intrusions of magma (molten rock) in volcanic areas. Some thermal springs, however, are not related to volcanic activity.
  • The water is heated by convective circulation: groundwater percolates downward & reaches depths of a kilometre or more where the temperature of rocks is high because of the normal temperature gradient of the Earth’s crust.

Why consider the Himalayas?

  • The Himalayan geothermal springs which cover about 10,000 square km in the Garhwal region of Himalaya show a significant discharge of CO2 rich water.
  • The estimated carbon dioxide degassing (removal of dissolved gases from liquids, especially water or aqueous solutions) flux is nearly 7.2 ×106 mol/year to the atmosphere.
  • Such CO2 degassing should be taken into account to assess global carbon outflux in the earth’s atmosphere.

Where does this CO2 come from?

  • Carbon outflux from Earth’s interior to the exosphere through volcanic eruptions, fault zones, and geothermal systems contribute to the global carbon cycle that effects short and long term climate of the Earth.
  • The CO2 in the thermal springs are sourced from metamorphic decarbonation of carbonate rocks present deep in the Himalayan core along with magmatism and oxidation of graphite.
  • Most of the geothermal water is dominated by evaporation followed by weathering of silicate rocks.
  • Isotopic analyses further point towards a meteoric source for geothermal water.

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Global Geological And Climatic Events

In news: Mount Sinabung

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Mount Sinabung

Mains level: Not Much

The Mount Sinabung volcano in Indonesia has erupted spouting ash at least 5,000 metres high into the sky.

In the Philippines, a volcano called Taal on the island of Luzon; 50 km from Manila has recently erupted in January. Note all such recent eruption in news.

Also, try this PYQ:

Consider the following statements:

  1. The Barren Island volcano is an active volcano located in the Indian Territory.
  2. Barren Island lies about 140 km east of Great Nicobar
  3. The last time the Barren Island volcano erupted was in 1991 and it has remained inactive since then.

Which of the statements given above is/are correct? (CSP 2018)

(a) 1 only

(b) 2 and 3 only

(c) 3 only

(d) 1 and 3

Mount Sinabung

  • It is a Pleistocene-to-Holocene stratovolcano in the Karo plateau of Karo Regency, North Sumatra, Indonesia.
  • It is created by the subduction of the Indo-Australian Plate under the Eurasian Plate.
  • It erupted in 2010 after a 400-year-long hiatus and has been continuously active since September 2013.

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Important Judgements In News

Issue of contempt of court

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Articles related to contempt of court

Mains level: Paper 2-Contempt of court

The concept of contempt of court has been in the news recently. This article analyses the issue and draws on the approach adopted by the British judiciary.

Issues with the concept of contempt

  • The concept of contempt is a centuries-old British law abolished in 2013.
  • At the time the British Law Commission said that one of the intentions for contempt of court was to hide judicial corruption.
  • The concept, therefore, clashed with the need for transparency but also freedom of speech.

Let’s look into some comment’s from judges

  • In1968, a British judge, had this to say of the Law of Contempt “We will not use it to suppress those who speak against us. We do not fear criticism, nor do we resent it. For there is something far more important at stake. It is no less than freedom of speech itself. “
  • In a 2008 lecture by Justice Markandey Katju noted that “The test to determine whether an act amounts to contempt of court or not is this: Does it make the functioning of judges impossible or extremely difficult? If it does not, then it does not amount to contempt of court even if it’s harsh criticism”.

Way forward

  • Whilst justice is important, judges must not take themselves too seriously.
  • Even if their amour propre is offended, it does not mean the institution has been questioned or justice brought into disrepute.
  • Judges deliver justice, they do not embody it.
  • They should never forget their Court is supreme because it’s final not because it’s infallible.
  • When they lapse they can be criticised, but of course, politely and fairly.

Conclusion

Indian Supreme Court hopefully pay attention to this aspect while delivering the judgement on the contempt cases.

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Economic Indicators and Various Reports On It- GDP, FD, EODB, WIR etc

The new consumer

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much

Mains level: Paper 3- Demand problem and ways to deal with it

The focus of this article is on the behavioural changes in the consumer post Covid. It also suggest the ways to deal with these changes.

Context

  • The consumer during and post-COVID is showing remarkable flexibility, bringing about a paradigm shift in her consumption pattern.

Issue of generating demand

  • Some state governments are busy demanding the opening up of the economy.
  • However, the issue is that the economy does not merely need opening up, but it requires urgent generation of basic demand.
  • That is why consumer behaviour needs to be closely watched.
  • Since the lockdown, the priorities of consumers have seen a drastic shift.

Factors to consider to increase demand

  • 1) The decrease in the purchasing power to buy products needs to be addressed.
  • The government must look at ways like a reduction in taxes which will help the common man.
  • 2) The current scenario has also made all of us go back to the basic needs.
  • Luxury products hold little value. But renting will increase.
  • 3) The emphasis will be on saving for a rainy day, whether in the case of banks or households
  • 4) Aviation, tourism and hospitality sectors have been hit and continue to remain so even after the restrictions are lifted.
  • 5)  e-commerce has shown exponential growth and will continue to do so.
  • 6) With “Vocal for Local” gaining momentum, there’s a huge increase in local apps, local kirana stores, local artisans and brands.
  • 7) Schools and colleges have taken a hit as e-learning and online courses are being preferred.
  • 8) The entertainment industry has been drastically hit. The media and entertainment industry needs to pay heed to this and curate content accordingly.
  • 9) With a lot of people laying emphasis on their health and immunity, there’s been a substantial rise in the consumption of organic, ayurvedic, and immunity-boosting products.
  • Apart from the obvious products, financial and medical insurance will play an important role.
  • 10) Real estate will suffer as no long-term, high investment purchases will be favoured, but renting will increase.

Role of the government

  • 1) People need to be provided with their daily needs — basic essentials such as food, water, housing, and electricity.
  • The government is already taking care of that, but money also needs to be given.
  • 2) Jobs need to be provided through development of infrastructure projects.
  • 3) Farmers need to have insurance for their crops and the infrastructure to sell at the right price.
  • 4) Migrant workers with their livelihoods being disrupted are looking for support,and many are focusing on agriculture as a means of income.

Way forward

  • The government should focus on generating demand for products, and create jobs by improving infrastructure.
  • The government must incentivise spending by offering tax benefits on the amount spent.
  • Government must forget about fiscal prudence this year.
  • Consumers in rural areas are buying more than before.Companies should focus on tapping the rural demand

Consider the question “Demand has been the driver of India’s growth. But the pandemic has dampened it with devastating effect. Agaist this backdrop suggest the measures to be taken by the government to revive the demand.”

Conclusion

With focus on these emerging trends and changing behaviour of the consumers, the government must take steps to bring the economy fast on the tracks.

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Coronavirus – Health and Governance Issues

What are Immunity Passports?

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Immunity certificates/ passports

Mains level: Ethical/Health concerns involved in issuing immunity passports

There is a growing debate for a rethink on “immunity passport” to be handed out to those who have recovered from COVID-19 for the purpose of travel or work without restrictions of quarantine.

Try this question form mains:

Q.Discuss various ethical issues evolved during the outbreaks of pandemics (of the scale of COVID-19).

Immunity Passports

  • They are the recovery or release certificate or a document attesting that its bearer is immune to a contagious disease.
  • The concept has drawn much attention during the COVID-19 pandemic as a potential way to contain the pandemic and permit faster economic recovery.
  • The can be used as a legal document granted by a testing authority following a serology test demonstrating that the bearer has antibodies making them immune to a disease.

What is the ongoing debate?

  • Experts argue that if reinfections were a significant problem, by now, there would have been hundreds or at least thousands of cases of reinfections at the global level.
  • Till such time effective vaccines become available people who have recovered from COVID-19 should be permitted to travel without restrictions.

A case for consideration

  • Immune protection after infection/disease is always much more robust than most vaccines, and definitely than most COVID-19 vaccines in development.
  • Some of the vaccines undergoing clinical trials are mostly directed at a single or a couple of proteins (spike) of the virus.
  • But vaccines under trial that use the inactivated coronaviruses would expose the immune system to a whole range of viral proteins, much like natural infection and can produce immune responses.
  • However, it is not known if people who have experienced asymptomatic infection would show robust immune responses like those who have recovered from moderate or severe disease.

Ethical issues involved

  • Issuing ‘immunity certificates’ to people who have recovered can be an ethical minefield.
  • Doctors do not generally prefer immunity to be induced by natural infection compared with vaccines. It seems logical, but there are multiple challenges.
  • There might be long-term health complications in those who had COVID-19, whereas the vaccine will have minimal or no adverse health consequences.
  • There is a danger that similar arguments will be made for other vaccine-preventable diseases for which we have a universal immunisation programme.

There is also a public health risk of issuing immunity certificates:

  • People whose livelihood has have been affected would be encouraged to adopt risky behaviour so as to get infected rather than taking precautions to stay protected from the virus.
  • This would lead to a sharp increase in cases across the country with huge numbers requiring hospitalization.
  • Such a situation would lead to testing capabilities getting overwhelmed, crumbling of the health-care systems and increased deaths.

Threats over malpractices:

  • Immunity certification will include a system for identification and monitoring, thus compromising privacy.
  • Other contentious issues would be profiteering by private labs performing tests, and the menace of fake certificates which we have already seen in some Indian states.
  • In the end, an immunity passport will further divide the society with different ‘haves’ and ‘have-nots’.

Way forward

  • We need to look at COVID-19 with a sense of balance and not hysteria.
  • Terms such as immunity passports may not have relevance as we do not know anything about specific kinds of immune responses and the duration of protection in people.
  • There is currently not enough evidence about the effectiveness of antibody-mediated immunity to guarantee the accuracy of an ‘immunity passport’ or ‘risk-free certificate’.
  • The permission to travel or work should be decided on a case by case basis, according to the principles of ethics while dealing with a pandemic.

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Modern Indian History-Events and Personalities

How Quit India movement gave a new direction to India’s freedom struggle?

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Quit India Movement

Mains level: India's freedom struggle

On August 8, 78 years ago, Mahatma Gandhi gave the call for British colonizers to “Quit India” and for the Indians to “do or die” to make this happen.

Try this PYQ:

Q.With reference to the Indian freedom struggle, consider the following events:

  1. Mutiny in Royal Indian Navy
  2. Quit India Movement launched
  3. Second Round Table Conference

What is the correct chronological sequence of the above events?(CSP 2017)

(a) 1-2-3

(b) 2-1-3

(c) 3-2-1

(d) 3-1-2

What led to the events of August 1942?

  • While factors leading to such a movement had been building up, matters came to a head with the failure of the Cripps Mission.
  • World War II was raging, and a beleaguered British needed the cooperation of their colonial subjects in India.
  • To this end, in March 1942, a mission led by Sir Stafford Cripps arrived in India to meet leaders of the Congress and the Muslim League.
  • The idea was to secure India’s whole-hearted support in the war, in return for self-governance.
  • However, despite the promise of “the earliest possible realization of self-government in India”, the offer Cripps made was of dominion status, and not freedom.

A final blow

  • The failures of the Cripps Mission made Mahatma Gandhi realize that freedom would be had only by fighting tooth and nail for it.
  • Though initially reluctant to launch a movement that could hamper Britain’s efforts to defeat Fascist forces in the World War, Congress eventually decided to launch a mass civil disobedience.
  • At the Working Committee meeting in Wardha in July 1942, it was decided the time had come for the movement to move into an active phase.

The Gowalia Tank address and Gandhiji’s arrest

  • On August 8, Gandhiji addressed the people from Mumbai’s Gowalia Tank maidan with the ‘Do or Die’ mantra.
  • By August 9, Gandhi and all other senior Congress leaders had been jailed.
  • He was kept at the Aga Khan Palace in Pune, and later in the Yerawada jail.
  • It was during this time that Kasturba Gandhi died at the Aga Khan Palace.

The slogan ‘Quit India’

  • While Gandhi gave the clarion call of Quit India, the slogan was coined by Yusuf Meherally, a socialist and trade unionist who also served as Mayor of Mumbai.
  • A few years ago, in 1928, it was Meherally who had coined the slogan “Simon Go Back”.

Outcome: A people’s movement

  • The arrest of the leaders, however, failed to deter the masses. With no one to give directions, people took the movement into their own hands.
  • In Bombay, Poona and Ahmedabad, lakhs of people clashed with the police on August 9. On August 10, protests erupted in Delhi, UP and Bihar.
  • There were strikes, demonstrations and people’s marches in defiance of prohibitory orders in Kanpur, Patna, Varanasi, and Allahabad.
  • The protests spread rapidly into smaller towns and villages.
  • Till mid-September, police stations, courts, post offices and other symbols of government authority were attacked.
  • Railway tracks were blocked, students went on strike in schools and colleges across India, and distributed illegal nationalist literature.
  • Mill and factory workers in Bombay, Ahmedabad, Poona, Ahmednagar, and Jamshedpur stayed away for weeks.
  • In some places, the protests were violent, with bridges blown up, telegraph wires cut, and railway lines taken apart.

Outcome

  • The Quit India movement was violently suppressed by the British – people were shot, lathi-charged, villages burnt and enormous fines imposed.
  • In the five months up to December 1942, an estimated 60,000 people had been thrown in jail.

Significance

  • Soon after, Gandhi and almost the entire top Congress leadership was arrested and thus began a truly people-led movement in our freedom struggle.
  • Eventually dispersed violently by the British, it left behind a clear message that the British would have to leave India, and no other solution would be acceptable to its masses.

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Foreign Policy Watch: India-China

What are Confucius Institutes, and why are they under the scanner in India?

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Confucius Institutes

Mains level: India-China diplomatic spat since border skirmishes

  • The Ministry of Education (previously HRD) had sent a letter to several institutions seeking information about the activities of their Confucius Institutes (CIs) and Chinese language training centres.
  • This has brought the spotlight to China’s CI programme, a key pillar of Beijing’s global soft power effort, and raised questions about the future of India-China cooperation in the education space.

Try this question for mains:

Q.“It cannot be business as usual with China after the border clash.” Critically comment.

What are the Confucius Institutes (CI)?

  • Starting with a CI in Seoul in 2004, China’s National Office for Teaching Chinese as a Foreign Language (NOCFL) known as Hanban establishes CI.
  • China has established 550 CIs and 1,172 Confucius Classrooms (CCs) housed in foreign institutions, in 162 countries.
  • As the Hanban explains on its website, following the experience of the British Council, Alliance Française and Germany’s Goethe-Institut, China began “establishing non-profit public institutions which aim to promote Chinese language and culture in foreign countries”.

What is the presence of CIs in India?

  • India is reviewing the presence of CIs in seven universities, in addition to 54 MoUs on inter-school cooperation involving China, which is not connected to the CI programme.

How have CIs been viewed around the world?

  • The CI arrangement has generated debate in the West, where some universities have closed the institutes amid concern over the influence of the Chinese government and it’s funding on host institutions.
  • Closures of some CIs have been reported in the United States, Denmark, the Netherlands, Belgium, France and Sweden.
  • While the closures in the West have made news, these cases still represent a minority. Faced with this backlash, China is now rebranding the programme.
  • Most of the 550 CIs and more than 1,000 CCs around the world are still active, with a presence spanning Africa, Central Asia, Latin America, and across Asia.

What does it mean for India-China relations?

  • CIs and CCs had already been in India for more than 10 years.
  • Even prior to the border skirmishes, Indian authorities had viewed the CI arrangement somewhat warily.
  • Along with the new move to review CIs, Mandarin has been dropped from the list of foreign languages that can be taught in schools in the new National Education Policy.

Not a perfect move

  • Recent moves by India shows that it cannot be business as usual with China after the border clash.
  • However, India’s long-term objectives are not clear.
  • De-emphasizing learning Mandarin is neither likely to impact China’s stance on the border nor help India in developing the expertise and resources it needs in dealing with China.

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