Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 2- Partnership in technological domain with UK
Context
When Delhi thinks of technological cooperation with major powers, the US, Europe and Japan come to mind. The missing link in India’s technological mind space, however, is the United Kingdom.
How India can benefit from technology partnership with Britain
- Britain was the first nation to industrialise and has a long tradition of scientific research and technological development.
- With top-ranking universities and the golden triangle of science and innovation — London, Oxford and Cambridge — Britain is one of the world’s top technology powers.
- WIPO ranking: This year, the World Intellectual Property Organisation ranked Britain fourth in the global innovation index.
- India is far behind at the 46th position.
- India, then, could gain in a technology partnership with Britain.
Overview of the India-UK bilateral ties
- Pakistan angle: India’s foreign policy community can’t shake off the Pakistan prism in viewing London.
- To be sure, London’s advocacy of Pakistan has always irritated Delhi.
- Instead of complaining about London’s South Asian policy, Delhi now simply ignores London’s claims for a special role in India’s political disputes with Pakistan.
- By focusing on the positive, Delhi is betting it can reduce the traditional negative elements in the engagement with the UK.
- At the same time, Delhi recognises the enormous strategic possibilities with Britain and is willing to invest political capital to build on those synergies.
- Meanwhile, the steady relative decline of Pakistan — its economy is now about a tenth of India’s — and Delhi’s deepening strategic partnership with Washington are also encouraging London to rethink its past approach to the Subcontinent.
- India is fully conscious of UK’s enduring global salience.
- External Affairs Minister Subrahmanyam Jaishankar has often highlighted Britain’s continuing weight in the world as the fifth-largest economy, a permanent member of the UN Security Council, a major financial centre, and a leading hub of higher education and technology.
- Britain also enjoys a global maritime reach and a measure of political influence across the world.
Possibilities for partnership in the technological domain
- While a trade agreement between Delhi and London is said to be imminent, it is in the technological domain that the prospects are immense but under-explored.
- There is insufficient awareness in India’s strategic community of the British moves to put science and technology at the very heart of its political, economic, security and foreign policies.
- London announced a raft of measures this year starting with a major report on “Global Britain in a Competitive Age: An Integrated Review of Security, Defence, Development, and Foreign Policy”.
- One of the broad themes stand out from these initiatives, which is forming a coalition of like-minded countries.
- London wants to build a coalition of like-minded countries to reshape the global governance of technology.
- This includes strengthening technological ties with the traditionally close partners in the Anglosphere — US, Canada, Australia, and New Zealand — as well as other partners like Japan and India.
- All these elements of British policy mesh with India’s own economic, political, and security interests.
- The British technology initiatives are also aligned with the technological agenda of the Quad — or the Quadrilateral forum that brings together Australia, India, Japan, and the US.
Consider the question “In India’s partnership with the UK, it is the technological domain where prospects are immense but underexplored. Comment.”
Conclusion
For Delhi, the essence of the new alliance with Britain is fourfold — generate domestic prosperity, enhance national security, climb up the global technology hierarchy, and contribute to the construction of a free, open, and democratic global technological order.
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Back2Basics: Major themes of the policy report on “Global Britain in a Competitive Age”
- [1] Leverage technology to “level up” the regional and social inequalities in Britain.
- [2] Ensure Britain’s privileged position as a leading science power.
- [3] Focus on technological innovation to drive Britain’s future economic growth.
- [4] Build internal security resilience against new technological threats.
- [5] Modernise the intelligence apparatus with the help of new technologies.
- [6] Integrate technology into the national defence strategy as new capabilities like AI become as consequential as battle-tanks, ships and fighter jets.
- [7] Project technological power to counter malevolent actors in the international system.
- [8]A coalition of like-minded countries.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: UNCTAD
Mains level: Paper 3- Opportunities for India in post-Pandemic world
Context
The COVID-19 pandemic has profoundly impacted lives and livelihoods across the world. Governments, global institutions, industry, academia and non-profit organisations around the world have joined hands to tackle the global challenge and help countries rebuild their economies.
Criticality of international cooperation and role for India
- The novel coronavirus pandemic has once again highlighted the criticality of international cooperation in combating current and future challenges.
- Areas of cooperation: Key among these include economic growth, building competitiveness of the investment climate, ensuring sustainable development paths and adapting to technology acceleration.
- Strengthening global partnership: Building resilience to cope with the threats posed by pandemics and other man-made and natural disasters has necessitated strengthening global partnerships now more than ever.
- Global partnerships help in building mutual trust and understanding by agreeing upon common rules and standards and sharing of best practices.
Areas to focus on
[1] Challenge of long term sustainability of growth process
- While the world economy is rebounding strongly, the long-term sustainability of the growth process needs to be strengthened.
- Exit from the massive stimulus packages itself may pose risks of economic and financial instability.
[2] Challenges of supply chain management:
- The pandemic severely disrupted global supply chains and set the global trade trajectory on a downward path.
- Even as the world emerges from the pandemic, facilitating medical supplies and essentials will continue to remain a top priority and for this, supply chains will need to be kept flowing.
- For this year, the United Nations Conference on Trade and Development (UNCTAD) indicates an increase of 22.4% in the value of global merchandise trade compared with 2020.
- World trade is expected to stand about 15% higher than before the COVID-19.
- FDI flows in developing economies also increased significantly, totalling $427 billion in the first half of 2021.
- Cooperation on trade facilitation for enhancing open and transparent markets, technical assistance and reduction of complex process and arrangements must be promoted.
[3] Increasing competitiveness
- Competitiveness will be key in facilitating growth and inclusive development.
- New opportunities and avenues across potential high growth sectors such as manufacturing and start-ups must be leveraged.
- An ecosystem of entrepreneurship and innovation with targeted policies and interventions will contribute to enhancing productivity and generating employment.
[4] Structural changes with the emergence of digital economy
- Certain structural changes are likely to become permanent in the future and this is especially true of the digital economy
- Equitable adaptation: The rise of telemedicine, remote work and e-learning, delivery services, etc. necessitates equitable adaptation to advanced technologies and tools, building robust infrastructure, and occupational transitions.
- Skill development and worker training, investments in education and vocational training, and capacity building would be some key areas of focus for filling technology gaps and nurturing new and existing talent.
- Investment in innovation: At the same time, investments in innovation will be crucial, especially during a crisis.
[5] Climate change
- Matter of urgency: Climate change has now acquired urgency from policymakers around the world, as seen in the recent COP26 at Glasgow.
- International alliances and cooperation on building sustainable solutions, green technology, resource efficiency, sustainable finance, etc., must be promoted to fast-track meeting the sustainable development goals and for ensuring all-round development.
Opportunities for India
- Attaining faster growth path: India’s recent reforms, role in combating the pandemic, and startup vibrancy, among other factors, have attracted global attention and can help it attain a faster growth path, provided its integration with the world economy and trade gains strategic intensity.
- Reliable and trusted player: With multiple strategic shifts, India’s role as a reliable and trusted player in the comity of nations stands enhanced.
Way forward
- In the post-pandemic world, it will be critical for India to improve on its investment climate and systematically target its export capabilities across sectors and regions.
- Ease of doing business and new free trade agreement with major markets will help it integrate closely with the world through trade and investment partnerships.
Conclusion
The time for India is here and it must leverage international partnerships for ensuring a robust and sustained economic growth path.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 3- Semiconductor chip manufacturing in India
Context
India is aiming to manufacture silicon semiconductor chips.
Efforts to set up chip fabrication plant
- India has intensified efforts to set up a semiconductor fabrication plant with the help of Taiwan, the market leader.
- For this the government is investing over $7.5 billion.
- The Tata Group is in talks with three States — Tamil Nadu, Telangana and Karnataka — to invest over $300 million to set up a semiconductor manufacturing facility.
- In 2014, NASSCOM wanted to promote a National Technology Corridor along coastal A.P. stretching through the Visakhapatnam, Rajahmundry and Vijayawada region.
- Given the abundance of water, sand (raw material for making silicon ingots), road, rail, ports and airport connectivity, the industry body wanted to push and promote the design and manufacturing of electronic chips.
Challenges
- IP and design: While welcoming such moves by the government and technology experts, local players in the segment say that chip making itself will not be enough.
- Other aspects such as designing and Intellectual Property are required to make a mark.
- Designing is what brings value to the chips.
- If the Intellectual Property lies with the foreign entity, we end up manufacturing the basic material which does not serve the purpose.
- Need to promote SoCs: Rather, we need an ecosystem to promote SoCs (System on a Chip) which makes more sense.”
- There are several firms in India which are now making SoCs, which is a good sign.
- Connect related industries: The bigger challenge and immediate need for the Indian government is to connect related industries in India to create the ecosystem, industry players say.
Consider the question “What are the challenges India may face as it aims to manufacture silicon semiconductor chips?”
Conclusion
The initiative is an uphill task as many factors need to come together for India to make a mark in the niche chip making and designing industry. Also, upcoming firms should be able to sustain themselves in the market when subsidies from the government are withdrawn.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: IMBL, EEZ, UNCLOS
Mains level: UNCLOS and the chinese deterrence
India remains committed to promoting a free, open and rules-based order rooted in international law and undaunted by coercion, the Centre informed Parliament while reiterating support for the United Nations Convention on the Law of the Sea (UNCLOS).
Background of UNCLOS
- UNCLOS replaces the older ‘freedom of the seas’ concept, dating from the 17th century.
- According to this concept, national rights were limited to a specified belt of water extending from a nation’s coastlines, usually 3 nautical miles (5.6 km; 3.5 mi).
- This was considered according to the ‘cannon shot’ rule developed by the Dutch rulers.
About UNCLOS
- UNCLOS is sometimes referred to as the Law of the Sea Convention or the Law of the Sea treaty.
- It came into operation and became effective from 16th November 1982.
- It defines the rights and responsibilities of nations with respect to their use of the world’s oceans, establishing guidelines for businesses, the environment, and the management of marine natural resources.
- It has created three new institutions on the international scene :
- International Tribunal for the Law of the Sea,
- International Seabed Authority
- Commission on the Limits of the Continental Shelf
Note: UNCLOS does not deal with matters of territorial disputes or to resolve issues of sovereignty, as that field is governed by rules of customary international law on the acquisition and loss of territory.
Major conventions:
There had been three major conferences of UNCLOS:
- UNCLOS I: It resulted in the successful implementation of various conventions regarding Territorial Sea and Contiguous Zones, Continental Shelf, High Seas, Fishing Rights.
- UNCLOS II: No agreement was reached over breadth of territorial waters.
- UNCLOS III: It introduced a number of provisions. The most significant issues covered were setting limits, navigation, archipelagic status and transit regimes, exclusive economic zones (EEZs), continental shelf jurisdiction, deep seabed mining, the exploitation regime, protection of the marine environment, scientific research, and settlement of disputes.
The convention set the limit of various areas, measured from a carefully defined baseline.
These terminologies are as follows:
(1) Baseline
- The convention set the limit of various areas, measured from a carefully defined baseline.
- Normally, a sea baseline follows the low-water line, but when the coastline is deeply indented, has fringing islands or is highly unstable, straight baselines may be used.
(2) Internal waters
- It covers all water and waterways on the landward side of the baseline.
- The coastal state is free to set laws, regulate use, and use any resource. Foreign vessels have no right of passage within internal waters.
- A vessel in the high seas assumes jurisdiction under the internal laws of its flag State.
(3) Territorial waters
- Out to 12 nautical miles (22 km, 14 miles) from the baseline, the coastal state is free to set laws, regulate use, and use any resource.
- Vessels were given the Right of Innocent Passage through any territorial waters.
- “Innocent passage” is defined by the convention as passing through waters in an expeditious and continuous manner, which is not “prejudicial to the peace, good order or the security” of the coastal state.
- Fishing, polluting, weapons practice, and spying are not “innocent”, and submarines and other underwater vehicles are required to navigate on the surface and to show their flag.
- Nations can also temporarily suspend innocent passage in specific areas of their territorial seas, if doing so is essential for the protection of their security.
(4) Archipelagic waters
- The convention set the definition of “Archipelagic States”, which also defines how the state can draw its territorial borders.
- All waters inside this baseline are designated “Archipelagic Waters”.
- The state has sovereignty over these waters mostly to the extent it has over internal waters, but subject to existing rights including traditional fishing rights of immediately adjacent states.
- Foreign vessels have right of innocent passage through archipelagic waters, but archipelagic states may limit innocent passage to designated sea lanes.
(5) Contiguous zone
- Beyond the 12-nautical-mile (22 km) limit, there is a further 12 nautical miles (22 km) from the territorial sea baseline limit, the contiguous zone.
- Here a state can continue to enforce laws in four specific areas (customs, taxation, immigration, and pollution) if the infringement started or is about to occur within the state’s territory or territorial waters.
- This makes the contiguous zone a hot pursuit area.
(6) Exclusive economic zones (EEZs)
- These extend 200 nm from the baseline.
- Within this area, the coastal nation has sole exploitation rights over all natural resources.
- In casual use, the term may include the territorial sea and even the continental shelf.
(7) Continental shelf
- The continental shelf is defined as the natural prolongation of the land territory to the continental margin’s outer edge, or 200 nautical miles (370 km) from the coastal state’s baseline, whichever is greater.
India and UNCLOS
- As a State party to the UNCLOS, India promoted utmost respect for the UNCLOS, which established the international legal order of the seas and oceans.
- India also supported freedom of navigation and overflight, and unimpeded commerce based on the principles of international law, reflected notably in the UNCLOS 1982.
- India is committed to safeguarding maritime interests and strengthening security in the Indian Ocean Region (IOR) to ensure a favorable and positive maritime environment.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Q-Commerce Model
Mains level: E-commerce boom in India
Online grocer Grofers has rebranded itself “Blinkit”, in line with its new focus on “quick commerce”, which essentially involves delivering customer orders much faster than it does currently.
Q-Commerce Model
- Q-commerce (‘quick commerce’) – sometimes used interchangeably with ‘on-demand delivery’ and ‘e-grocery’ – is e-commerce in a new, faster form.
- It combines the merits of traditional e-commerce with innovations in last-mile delivery.
- The premise is largely the same, with speed of delivery being the main differentiator. Delivery is not in days but minutes – 30 or less, to be competitive.
- This has in turn expanded the breadth of what individuals can order, with perishable goods – like groceries – being a large niche q-commerce companies speak to.
- It tends to focus on the micro – smaller quantities of fewer goods.
Features of this model
- Countering pandemic: The supply chain disruptions triggered by the Covid-19 pandemic led to the emergence of a new sub-vertical in the online grocery segment.
- Quickest delivery: It is the unique selling proposition (USP) of which was the promise of delivery within 10-30 minutes of ordering.
- Micro-warehousing : The focus of most of these ventures is on setting up micro-warehouses located closer to the point of delivery, and of restricting stocks of high-demand items.
Back2Basics: Marketplace and Inventory-Based Model
(1) Marketplace Model
- It provides an IT platform by an e-commerce entity on a digital & electronic network to act as a facilitator between the buyer and seller. Ex. India Mart, Amazon, Flipkart.
- The e-commerce firm does not directly or indirectly influence the sale price of goods or services and is required to offer a level playing field to all vendors.
(2) Inventory-Based Model
- Inventory based model of e-commerce means an e-commerce activity where the inventory of goods and services is owned by an e-commerce entity and is sold to the consumers directly.
- Ex. Alibaba
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NBFCs
Mains level: Co-Lending and associated issues
A November 2020 decision by the RBI to permit banks to “co-lend with all registered NBFCs based on a prior agreement” has led to unusual tie-ups between the banks and companies.
The ‘Co-Lending Model’
- In September 2018, the RBI had announced “co-origination of loans” by banks and Non-Banking Financial Companies (NBFCs) for lending to the priority sector.
- The arrangement entailed joint contribution of credit at the facility level by both the lenders as also sharing of risks and rewards.
- Subsequently, based on feedback from stakeholders, the RBI allowed the lenders greater operational flexibility, while requiring them to conform to regulatory guidelines.
- The primary focus of the revised scheme, rechristened as ‘Co-Lending Model’ (CLM), was to “improve the flow of credit to the unserved and underserved sector of the economy.
Repercussions of Co-Lending
(1) Bank-NBFC tie-ups at indiscriminate scale
- Several banks have entered into co-lending ‘master agreements’ with NBFCs, and more are in the pipeline.
- SBI, the country’s largest lender, signed a deal with Adani Capital, a small NBFC of a big corporate house, for co-lending to farmers to help them buy tractors and farm implements.
(2) Greater risk in co-lending
- NBFCs are required to retain at least a 20 per cent share of individual loans on their books.
- This means 80 per cent of the risk will be with the banks — who will take the big hit in case of a default.
(3) Corporates in banking
- While the RBI hasn’t officially allowed the entry of big corporate houses into the banking space, NBFCs — mostly floated by corporate houses — were already accepting public deposits.
- They now have more opportunities on the lending side through direct co-lending arrangements.
Back2Basics: Non-Banking Financial Company (NBFC)
- An NBFC is a company incorporated under the Companies Act 2013 or 1956.
- According to section 45-I (c) of the RBI Act, a Non–Banking Company carrying on the business of a financial institution will be an NBFC.
- It further states that the NBFC must be engaged in the business of Loans and Advances, Acquisition of stocks, equities, debt etc issued by the government or any local authority or other marketable securities.
NBFC business:
The NBFC business does not include business whose principal business is the following:
- Agricultural Activity
- Industrial Activity
- Purchase or sale of any goods excluding securities
- Sale/purchase/construction of any immovable property – Providing of any services
Difference between Banks and NBFCs:
- NBFCs lend and make investments and hence their activities are akin to that of banks; however there are a few differences as given below:
- NBFC cannot accept demand deposits;
- NBFCs do not form part of the payment and settlement system and cannot issue cheques drawn on itself;
- Deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available to depositors of NBFCs, unlike in the case of banks.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Online Lokpal
Mains level: Lokpal and Lokayuktas Act, 2013
The (first) Chairperson, Lokpal of India, Justice Pinaki Chandra Ghose has inaugurated’ a digital Platform for Management of Complaints called ‘Lokpal-Online’.
Lokpal-Online
- Lokpal-Online is an end-to-end digital solution for the management of complaints against public servants filed under the Lokpal and Lokayuktas Act, 2013.
- It is a web-based facility, which will quicken the disposal of complaints in an accountable, transparent and efficient manner with benefits to all stakeholders.
- It facilitates handling of complaints during the complete lifecycle of the Complaint, right from its filing to the final disposal.
- It aims to bring more transparency and efficiency to the complaint handling mechanism.
Notable features of Online-Lokpal
- Convenience to complainants for filing complaints online from anywhere anytime
- Information to the complainant about action on the complaint at every stage through e-mails and SMS
- Facility to the complainant to ascertain the status of complaint at anytime
- Identity of the complaint is kept confidential
- The CVC, CBI and other inquiry agencies can upload their reports directly on the ‘Lokpal-Online’ platform.
- Reminders to inquiry agencies through e-mails and SMS
- Generation of analytical reports as per requirement
Back2Basics: Lokpal
- The Lokpal, the apex body to inquire and investigate graft complaints against public functionaries, came into being with the appointment of its chairperson and members in March 2019.
- In March 2019, former SC judge Justice Pinaki Chandra Ghose was selected as the first head of the Lokpal.
Lokpal and Lokayuktas Act, 2013
- The Lokpal Act 2013 is anti-corruption legislation that seeks to provide for the establishment of the institution of Lokpal.
- It seeks to inquire into allegations of corruption against certain important public functionaries including the PM, cabinet ministers, MPs, Group A officials of the Central Government, etc.
- The Bill was introduced in the parliament following massive public protests led by anti-corruption crusader Anna Hazare and his associates.
- The Bill is one of the most widely discussed and debated Bills in India in recent times.
Its history
- The term Lokpal was coined in 1963 by Laxmi Mall Singhvi, a member of parliament during a parliamentary debate about grievance mechanisms.
- The Administrative Reforms Commission (ARC) headed by Morarji Desai submitted an interim report on “Problems of Redressal of Citizen’s Grievances” in 1966.
- In this report, ARC recommended the creation of two special authorities designated as ‘Lokpal’ and ‘Lokayukta’ for a redress of citizens’ grievances.
- Maharashtra was the first state to introduce Lokayukta through The Maharashtra Lokayukta and Upa-Lokayuktas Act in 1971.
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