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Centre’s decision to provide security to MLAs raises questions

Note4Students

From UPSC perspective, the following things are important :

Prelims level: CAPF

Mains level: Paper 2- Issues with MHA's decision to deploy CAPF for the security of MLAs

The article deals with the issue of the Home Ministry’s decision to provide security to BJP MLAs in West Bengal.

Context

Recently, the Union Ministry of Home Affairs (MHA) decided to provide security cover to 77 MLAs of the Bharatiya Janata Party (BJP) who were elected earlier this month after the West Bengal Assembly poll.

Issues with the decision

1) Threat perception discussed for a group and not one by one person

  • Decisions to provide security to persons under threat is taken by a committee in the MHA.
  • The committee comprises officials from the MHA, the Intelligence Bureau, Delhi Police and senior officials of the Central Armed Police Forces.
  • In the meetings of the committee, the threat perception of each of the person to be secured is discussed one by one and not collectively for any group as such.
  • However, in the decision to deploy CAPF personnel for the 77 MLAs, threat perception for each of the persons was not discussed.

2) Law and order is a state subject

  • Law and order being a State subject, West Bengal is duty-bound to protect every citizen of the State, more so the MLAs.
  • By deploying central forces, the Centre has sent a clear signal that it does not rely upon the State government to provide fool-proof security to the BJP MLAs.
  • This is not a good sign for Centre-State relations.
  • The Central government’s distrust of officers who are considered close to a State’s ruling dispensation does not bode well for police officers across the country.

3) Burdening the security forces

  • The number of protected persons has increased in recent years.
  • In 2019, as many as 66,043 police and CAPF personnel were deployed to protect 19,467 persons against the sanctioned strength of 43,556 personnel, as per the Data on Police Organisations.
  • Constant deployment of CAPF personnel on protection duties impacts their training schedule.

Curbing the tendency to have security as status symbol

  • To curb the tendency of demanding security personnel around themselves, leaders and prominent persons should be asked to bear the expenditure.
  • Similarly, Members of Parliament and leaders with criminal records should be charged a fee for the security personnel deployed to protect them.

Conclusion

The Centre’s decision to provide security to the MLAs would set a wrong precedent and does not bode well for federalism.

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Modern Indian History-Events and Personalities

6 UNESCO heritage sites added in India

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Sites mentioned in the news

Mains level: Not Much

Six sites have been added to India’s tentative list of UNESCO world heritage sites.

Which are the 6 sites?

  1. Ganga ghats in Varanasi
  2. Temples of Kancheepuram in Tamil Nadu
  3. Satpura Tiger Reserve in Madhya Pradesh
  4. Maratha military architecture in Maharashtra
  5. Hire Bengal megalithic site in Karnataka and
  6. Bhedaghat-Lametaghat of Narmada Valley in Madhya Pradesh

[1] Ghats of Varanasi

  • The Ganges riverfront of Varanasi, Uttar Pradesh, has been vying for the UNESCO tag for several years now.
  • The Ganga river with its riverfront ghats also fulfil the criteria of Cultural Landscapes as designated in Article 1 of the Convention and specifically that of a cultural landscape/
  • It retains an active social role in contemporary society closely associated with the traditional way of life, and in which the evolutionary process is still in progress.

[2] Temples of Kanchipuram

  • Synonymous with spirituality, serenity, and silk, the temple town of Kanchipuram in Tamil Nadu, is dotted with ancient temples that are architectural marvels and a visual treat, states incredibleindia.org.
  • Situated on the banks of River Vegavathi, this historical city once had 1,000 temples, of which only 126 (108 Shaiva and 18 Vaishnava) now remain.
  • Its rich legacy has been the endowment of the Pallava dynasty, which made the region it’s capital between the 6th and 7th centuries and lavished upon its architectural gems that are a fine example of Dravidian styles.

[3] Satpura Tiger Reserve

  • Located in Madhya Pradesh, the Satpura National Park is home to 26 species of the Himalayan region including reptiles, and 42 species of Nilgiri areas.
  • It is the largest tiger-occupied forest and also has the largest tiger population.
  • The website also states the place has more than 50 rock shelters with paintings that are 1500 to 10,000 years old.

[4] Maratha Military Architecture in Maharashtra

  • There are 12 forts in Maharashtra dating back to the era of the 17th-century Maratha king Chhatrapati Shivaji.
  • They are namely Shivneri (the birthplace of Shivaji); Raigad (the capital fort rebuilt for the coronation of the Maratha king), Torna (the first fort of the Maratha empire), Rajgad, Salher-Mulher, Panhala, Pratapgad, Lohagad, Sindhudurg, Padmadurga (Kasa), Vijaydurg and Kolaba.
  • This highlight how the formation of Military Landscape in the form of hill and sea forts as a response to hilly terrain in the area is of outstanding universal value.

[5] Megalithic site of Hire Benkal

  • The 2,800-years-old megalithic site of Hire Benkal in Karnataka is one of the largest prehistoric megalithic settlements where some funerary monuments are still intact.
  • The granite structures are burial monuments that may also have served many ritual purposes.
  • Due to the extremely valuable collection of Neolithic monuments, the site was proposed for recognition.

[6] Bhedaghat-Lametaghat in Narmada Valley- Jabalpur

  • Bhedaghat, often referred to as the Grand Canyon of India, is a town in the Jabalpur district, around 25 km from Jabalpur.
  • It is known for its marble rocks and their various morphological forms on either side of the Narmada River which flows through the gorge states whcunesco.org.
  • It has also been observed that the magical marble mountains assume different colours and even shapes of animals and other living forms as one moves through them.
  • Several dinosaur fossils have been found in the Narmada valley, particularly in Bhedaghat-Lametghat area of Jabalpur. In 1828, the first Dinosaur fossil was collected from Lameta Bed by William Sleeman.
  • River Narmada narrows down on its way through marble rocks and plunges in a waterfall giving out the appearance of a smoke cascade.

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Industrial Sector Updates – Industrial Policy, Ease of Doing Business, etc.

FinMin grants ‘infrastructure’ status for convention centres

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Harmonized Master list

Mains level: Infrastructure sector

The Finance Ministry has granted ‘Infrastructure’ status for exhibition and convention centres, a move that is expected to ease bank financing for such projects.

Exhibition-cum-Convention Centre

  • ‘Exhibition-cum-Convention Centre is included in the Harmonized Master List of Infrastructure sub-sectors by insertion of a new item in the category of Social and Commercial Infrastructure.
  • The benefits available as ‘infrastructure’ projects would only be available for projects with a minimum built-up floor area of 1,00,000 square metres of exclusive exhibition space or convention space or both combined.
  • This includes primary facilities such as exhibition centres, convention halls, auditoriums, plenary halls, business centres, meeting halls etc.
  • As of now, the major projects underway in the sector are backed by the government – the International Exhibition-cum-Convention Centres at Dwarka as well as Pragati Maidan in the capital.

What is the Master List?

  • The Harmonized Master list approved by the cabinet committee on infrastructure has five main sectors and 29 infra subsectors.
  • The five sectors include transport, energy, water sanitation, communication and social and commercial infrastructure.
  • The infra tag allows certain benefits including access to easier borrowings overseas, the ability to raise funds through tax-free bonds, tax concessions, and access to dedicated lenders such as IIFCL, and the debt funds.
  • Last August, the government had added affordable rental housing projects to the list of sectors recognised as infrastructure.

Benefits of the move

  • The infrastructure tag no longer involves significant tax breaks but would help such projects get easier financing from banks, said experts.
  • India doesn’t have large convention centres or single halls with capacities to hold 7,000 to 10,000 people, unlike countries like Thailand that is a major global MICE-destination.
  • Becoming a MICE (Meetings, Incentives, Conferences and Exhibitions) destination can generate significant revenue with several global companies active in India but it will take time to become a preferred destination.

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Foreign Policy Watch: India-Russia

Russia’s Nord Stream 2 Pipeline

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Nord Stream 2 Pipeline

Mains level: Not Much

The US government has decided to waive sanctions on the company behind Russia’s Nord Stream 2 pipeline to Europe.

Nord Stream 2 Pipeline

  • It is a system of offshore natural gas pipelines running under the Baltic Sea from Russia to Germany.
  • It includes two active pipelines running from Vyborg to Lubmin near Greifswald forming the original Nord Stream, and two further pipelines under construction running from Ust-Luga to Lubmin termed Nord Stream 2.
  • In Lubmin the lines connect to the OPAL line to Olbernhau on the Czech border and to the NEL line to Rehden near Bremen.
  • The first line Nord Stream-1 was laid and inaugurated in 2011 and the second line in 2012.
  • At 1,222 km in length, Nord Stream is the longest sub-sea pipeline in the world, surpassing the Langeled pipeline.

US sanctions

  • Nord Stream projects have been opposed by the United States as well as by several Central and Eastern European countries because of concerns that the pipelines would increase Russia’s influence in the region.
  • The US resistance to Nord Stream 2 is also influenced by the country’s increased production of natural gas, which gives the US economic incentive to resist the Russian supply of gas to the EU, in favour of US shale gas.

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Health Sector – UHC, National Health Policy, Family Planning, Health Insurance, etc.

Medicine from the Sky Project

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Medicine from the Sky Project

Mains level: Innovation in healthcare services

The Telangana government has selected 16 primary healthcare centres (PHCs) spread around Vikarabad area hospital for pilot testing the ambitious ‘Medicine from the sky’, the first-of-its-kind project involving delivery of medicines through multiple drones.

Medicine from the Sky Project

  • A consortium of seven operators headed by Blue Dart Med-Express had been selected for the project to be launched in the VLOS range of 500 metres initially and will be scaled up gradually to a 9 km range.
  • The selected PHCs are both within the Visual Line of Sight (VLOS) and Beyond Visual Line of Sight (BVLOS) range.
  • The project would be launched in three waves starting with a pilot followed by mapping the route network for the operation of drones for delivering vaccine/medicine in the desired community health centres and PHCs.
  • The project is being launched following the approval granted by the Civil Aviation Ministry to the request made by the State to grant conditional exemption from the Unmanned Aircraft System Rules 2021.

Benefits of the project

  • The project is aimed at assessing alternative logistics route in providing safe, accurate and reliable pickup and delivery of health care items like medicines, vaccines, units of blood and other lifesaving equipment from the distribution centre to a specific location and back.
  • The model, once successful, would enable deliveries from district medical stores and blood banks to PHCs, CHCs and further from PHCs/CHCs to central diagnostic laboratories.

Back2Basics: What is VLOS (Visual Line of Sight)?

  • Visual Line of Sight (‘VLOS’) operations are a type of operation in which the remote pilot maintains continuous, unaided visual contact with the unmanned aircraft. In its simplest term, the aircraft must always be visible to the pilot.
  • This allows the remote pilot to control the flight path of the unmanned aircraft in relation to other aircraft, people, and obstacles for the purpose of avoiding collisions.
  • Extended Visual Line of Sight operations (‘EVLOS’) allows flight Beyond Visual Line of Sight of the Remote Pilot by using ‘trained observers’.
  • Trained observers are used to comply with the separation and collision avoidance responsibilities of the operator.
  • ‘Beyond Visual Line of Sight’ operations is where the flying of a drone is without  a pilot maintaining a visual line of sight on the aircraft at all times.
  • Instead, the pilot operates the UAV using Remote Pilot Station (RPS) / Ground Control Station (GCS) instruments.

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Fertilizer Sector reforms – NBS, bio-fertilizers, Neem coating, etc.

[pib] Fertilizer Subsidy in India

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Fertilizer subsidies in India

Mains level: Not Much

A historic decision was taken to increase the subsidy for DAP fertiliser from Rs. 500 per bag to Rs. 1200 per bag, which is an increase of 140%.

Hike in subsidies

  • It was discussed that the price of fertilizers is undergoing an increase due to the rising prices of phosphoric acid, ammonia etc internationally.
  • Despite the rise in international market prices of DAP, it has been decided to continue selling it at the older price of Rs.1200 and the central government has decided to bear all the burden of price hike.
  • The amount of subsidy per bag has never been increased so much at once.

Fertilizer Subsidy in India

  • Subsidy as a concept originated during the Green Revolution of the 1970s-80s.
  • Fertiliser subsidy is purchasing by the farmer at a price below MRP (Maximum Retail Price), that is, below the usual demand-and-supply-rate, or regular production and import cost.
  • Fertiliser subsidy ultimately goes to the fertiliser company, even though it is the farmer that benefits.
  • Before 2018, companies were reimbursed after the material was dispatched and received by the district railhead or designated godown.
  • 2018 saw the beginning of DBT (Direct Benefit Transfer), which would transfer money directly to the retailer’s account.
  • However, the companies will be paid only after the actual sale to the farmer.

Put answers in the comment box for this PYQ:

Q.What are the advantages of fertigation in agriculture? (CSP 2020)

1.Controlling the alkalinity of irrigation water is possible.
2. Efficient application of Rock Phosphate and all other phosphatic fertilizers is possible.
3. Increased availability of nutrients to plants is possible.
4. Reduction in the leaching of chemical nutrients is possible.

Select the correct answer using the code given below:
(a) 1, 2 and 3 only

(b) 1,2 and 4 only

(c) 1,3 and 4 only

(d) 2, 3 and 4 only

How is the subsidy paid and who gets it?

  • The subsidy goes to fertiliser companies, although its ultimate beneficiary is the farmer who pays MRPs less than the market-determined rates.
  • Companies, until recently, were paid after their bagged material had been dispatched and received at a district’s railhead point or approved godown.
  • From March 2018, a new so-called direct benefit transfer (DBT) system was introduced, wherein subsidy payment to the companies would happen only after actual sales to farmers by retailers.
  • With the DBT system, each retailer — there is over 2.3 lakh of them across India — now has a point-of-sale (PoS) machine linked to the Department of Fertilizers’ e-Urvarak DBT portal.

How does this system work?

  • A popular example of how this system works is that of the neem coated urea fertiliser.
  • Its MRP (Maximum Retail Price) is fixed by the government at Rs. 5922.22 per tonne.
  • The average cost of domestic production is at Rs 17,000 per tonne. The difference is footed by the centre in the form of subsidy.
  • This fertiliser has high Nitrogen content and is cheaper than usual fertilizers.
  • While this may be perceived as a good thing, excess of Nitrogen can disrupt the NPK (Nitrogen, Phosphorus and Potassium) balance in the soil.

What about non-urea fertilizers?

  • The non-urea fertiliser is decontrolled or fixed by the companies.
  • However, the government pays a flat per tonne subsidy to maintain the nutrition content of the soil, and ensure other fertilizers are economical to use.
  • The non- urea fertilizers are further divided into two parts, DAP (Diammonium Phosphate) and MOP (Muriate of Phosphate).

Issues with such subsidies

  • A flawed subsidy policy is harmful not just for the farmer, but to the environment as well.
  • Indian soil has low Nitrogen use efficiency, which is the main constituent of Urea. Consequently, excess usage contaminates groundwater.
  • The bulk of urea applied to the soil is lost as NH3 (Ammonia) and Nitrogen Oxides. The WHO has prescribed limits been breached by Punjab, Haryana and Rajasthan.
  • For human beings, “blue baby syndrome” is a common side ailment caused by Nitrate contaminated water.
  • This hampers the ability of the body to carry Nitrogen, with a high probability of death.

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GI(Geographical Indicator) Tags

[pib] GI certified Gholvad Sapota

Note4Students

From UPSC perspective, the following things are important :

Prelims level: GI tags in news

Mains level: Not Much

 

In a major boost to exports of Geographical Indication (GI) certified products, a consignment of Dahanu Gholvad Sapota from the Palghar district of Maharashtra was shipped to the United Kingdom.

Gholvad Sapota

  • GI certification of Ghovad Sapota is held by Maharashtra Rajya Chikoo Utpadak Sangh and the fruit is known for its sweet and unique taste.
  • It is believed that the unique taste is derived from the calcium-rich soil of Gholvad village.
  • Currently, in the Palgahr district, around 5000 hectares of land is under sapota or plantation.
  • Sapota is grown in many states- Karnataka, Gujarat, Maharashtra, Tamil Nadu, West Bengal and Andhra Pradesh.
  • Karnataka is known to be the highest grower of the fruit, followed by Maharashtra.

Do you know?

Earlier this month, a consignment of 2.5 Metric Tonne of GI certified Banganapalli & Survarnarekha mangoes sourced from farmers in Krishna & Chittor districts of Andhra Pradesh was exported to South Korea.


Back2Basics: Geographical Indication (GI)

  • The World Intellectual Property Organisation defines a GI as “a sign used on products that have a specific geographical origin and possess qualities or a reputation that are due to that origin”.
  • GIs are typically used for agricultural products, foodstuffs, handicrafts, industrial products, wines and spirit drinks.
  • Internationally, GIs are covered as an element of intellectual property rights under the Paris Convention for the Protection of Industrial Property.
  • They have also covered under the Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement.

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Labour, Jobs and Employment – Harmonization of labour laws, gender gap, unemployment, etc.

Issues in Social Security Code 2020

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Provision in Social Security Code 2020

Mains level: Paper 2- Issues with the Social Security Code 2020

Provisions in Social Security Code 2020

  • India’s Parliament in September 2020 passed a Social Security Code (SS Code 2020).
  • The SS Code 2020 merges existing social security laws and attempts to include informal workers within the ambit of social security administration.
  • The SS Code 2020 amalgamates and rationalises the provisions of eight existing central labour laws.
  • Of these acts, employees provident fund, employees state insurance (ESI), maternity benefit, gratuity are entirely for organised sector workers. 
  • Employee threshold removed: For employees’ state insurance, the existing employee threshold has been withdrawn.
  • Now the central government can extend ESI benefits to any organisation irrespective of the number of workers employed.

Key benefits not available to informal workers in Social Security Code 2020

  • Maternity benefit: Under the SS Code, the provision of maternity benefit has not been made universal.
  • Maternity benefit is presently applicable for establishments employing 10 workers or more.
  • The definition of ‘Establishment’ in the proposed code did not include the unorganised sector.
  • Hence, women engaged in the unorganised sector would remain outside the purview of maternity benefit.
  • Employees Provident Fund: The SS Code maintains that the Employees’ Provident Fund Scheme will remain applicable, as before, to every establishment in which 20 or more employees are employed.
  • Thus, for informal sector workers, access to employees’ provident fund remains unfulfilled too in the new code.
  • Payment of gratuity: Gratuity shall be payable to eligible employees by every shop or establishment in which 10 or more employees are employed, or were employed, on any day of the preceding 12 months.
  • But although payment of gratuity was expanded in the new Code, it still remains inaccessible for a vast majority of informal workers.

Challenges faced by informal workers in availing social security

  • Registration barrier: To avail social security, an informal worker must register herself on the specified online portal to be developed by the central government.
  • Absence of definition: The absence of definite and unambiguous provisions in the present code would further complicate achievement of universal registration.
  • Lack of awareness: Experience shows that there is an awful lack of awareness among informal workers regarding social security schemes.
  • Lack of digital literacy: Online registration places a further challenge as most informal workers lack digital literacy and connectivity.
  • Lack of documents: Informal workers also find it difficult to furnish all documentary papers required as part of the registration process.
  • Furnishing proof of livelihood and income details in the absence of tangible employer-employee relations is very difficult.
  • Such requirements deter informal workers from completing the registration and they continue to remain outside the social security ambit.

Way forward

The provision of social security could be used to formalise the workforce to a certain extent. Employers could have been made to own up to the responsibility of providing social security to their workers.

1) Inter-State cooperation

  • As unorganised workers are spread across the length and breadth of India, inter-State arrangement and cooperation becomes imperative.
  • The central government should conceptualise a basic structure, which if successful, should be adopted by States after necessary customisation.

2) Universal coverage

  • The unorganised workforce is all encompassing, minus the minuscule regular workers of organised sectors.
  • This identity should be primal and all unorganised workers should have basic social security coverage, irrespective of labour market classifications.
  • The code fails to undertake such inclusion in a meaningful way.

Conclusion

The Social Security Code fails to provide adequate protection to informal workers, who constitute 91% of the workforce. The pandemic and misery brought by it on these informal workers highligths the need for universal social security.

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Important Judgements In News

Divesting States of the power to determine backwardness hits federalism

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Article 342A

Mains level: Paper 2- Interpretation of 102nd Amendment and issues created by it

The article highlights the issues with the Supreme Court judgement in the Maratha reservation case.

Three findings from Maratha reservation judgement

  • Recently, the Supreme Court of India declared as unconstitutional a Maharashtra law which provided for reservation to the Maratha community.
  • Three primary findings emanated from the judgement-
  • 1) Maratha not backward class: The Court held that the Maratha community did not constitute a socially and educationally backward class.
  • 2) Breach of 50% limit: The bench said that the law was in breach of a rule previously set by the Court disallowing reservations made in excess of 50% of the total available positions.
  • 3) Power of the States: The Court held that State governments had no independent power to declare a group as a backward class.

Issues with the judgement

The latter two findings run against the values of equality and federalism, which the Court has long regarded as integral to India’s democracy.

1)  50% limit does not stem from the Constitution

  • Articles 16(4) and 15(4) which confer power on the government to make reservations do not contains 50% limitation.
  • Reservation as an exception: Originally, however, these clauses were seen by the Supreme Court as exceptions to a broad rule of formal equality envisioned by the Constitution.
  • To that end, the Court held that to allow reservation in excess of 50% would lead to an exception overriding a rule. 
  • Reservation as basic guarantee: Countering the reservations as an exception position, a seven-judge Bench, in State of Kerala vs N.M. Thomas (1975), held that a programme of reservation was inherent in the Constitution’s basic guarantee of equal treatment.
  • This judgment held that affirmative action by the state was compelled by an objective of attaining substantive equality.
  • With this judgement the rule requiring that reservations stay under 50% ought to have been deemed incongruous.
  • But when the Court sat as a nine-judge Bench in Indra Sawhney vs Union of India (1992) it sustained the 50% limit.
  • The majority on the Bench ruled, on the one hand, that N.M. Thomas was correct in seeing reservations as embedded in a constitutional vision of substantive equality.
  • On the other hand, the bench accepted that reservation made in excess of 50%, barring exceptional circumstances, was harmful to that very vision. 

2) Interpretation of 102nd Amendment curtails the powers of the State governments to declare groups as backward

  • After Indra Sawhney judgement, the determination of backward classes was made by the National Commission for the Backward Classes, at the level of the Centre, and by regional commissions at the level of the State governments.
  • This division in power, gave States autonomy to classify groups as backward.
  • In contrast, the power to prepare lists of Scheduled Castes and Scheduled Tribes, vested solely with the Union government.
  • The 102nd Amendment (2018), introduced Article 342A.
  • Article 342A stipulated that the President of India may, after consultation with the State government, notify groups of persons within such a State who are deemed to be socially and educationally backward.
  • Any such “Central List”, the clause clarified, could only be altered by Parliament.
  • Article 366(26C) was also added, and “socially and educationally backward classes” was defined as “such backward classes as are so deemed under Article 342A for the purposes of this Constitution”.
  • In interpreting these changes, a majority in the Maratha reservation judgement concluded that the power for determination of other backward classes rests solely with the Centre.

How this interpretation goes against the federalism

  • This interpretation of 102nd Amendment altogether dispossess States from exercising a time-honoured authority.
  • But yet the amendment, in the Court’s belief, did not violate the Constitution’s basic structure.
  • This was because, according to the majority, the alterations neither took away “the very essence of federalism” nor denuded the States of their effective power to legislate.
  • But divesting states of power this critical, to classify groups as backward, entitling many communities to protection under Articles 15(4) and 16(4) is offensive to the “essence” of federalism.
  • The changes, as interpreted by the Court, directly impede the ability of States to secure just social order.

Consider the question “What are the implications for the States of the interpretation of the 102nd Amendment by the Supreme Court in the Maratha reservation case?” 

Conclusion

It is imperative that Parliament amend the Constitution and grants to States an express power to determine backwardness. Any other result will offend the delicate balance at the heart of Indian federalism.

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Foreign Policy Watch: India-United States

India needs to engage with U.S. progressives

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much

Mains level: Paper 2- India-US relations

The artcle highlights the role played by the progressive section in the US politics in influencing U.S. governments decision on TRIPS waiver and providing aid to India. Incidentally, these progressives include names such as Pramila Jayapal whose comment on human rights violations in Jammu and Kashmir had annoyed India.

What led to change in U.S.’s approach on aid

  • There was a shift in the U.S.’s approach on providing COVID-19-related aid to India as well as on the Trade-Related Aspects of Intellectual Property Rights (TRIPS) waiver on COVID-19 vaccines.
  • It is tempting to surmise the shift as being driven by the Comprehensive Global Strategic Partnership with New Delhi.
  • But it is more than just that.
  • The development was a result of the determined push by some sections of the political and business class, civil society, and Indian Americans.
  • Besides them, the progressives in the Democratic Party made a big difference.

Role of the progressives

  • Days ahead of the May 5 decision of the Biden administration on the TRIPS waiver, 110 members of the U.S. Congress wrote to President Biden urging him to support the waiver.
  • Thus, the Biden administration’s decision on the waiver and the vaccines, characterised as courageous by many, was a result of the push by the progressives.
  • Joining in this effort, the co-chair of the Congressional India Caucus, and over 50 colleagues wrote last week to President Biden seeking supply of specific items.
  • The overall approach is to work with India in its battle against the second wave and prepare for subsequent ones.

Conclusion

It is evident that the progressives have a grip on policymaking. India will have to remain engaged with this section instead of offering a cold shoulder as it did in the recent past. As the adage goes, all politics is local.

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Foreign Policy Watch: India-Middle East

Explained: India, Israel and Palestine Ties

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not Much

Mains level: India's position on Israel-Palestine conflict

Recently India’s permanent representative to the UN made a carefully crafted statement at the UN Security Council “open debate” on the escalating Israel-Palestine violence.

Must read:

[Burning Issue] West Asia Peace Plan

The story so far

  • The violence started on 6 May, when Palestinian protests began in Jerusalem over an anticipated decision of the Supreme Court of Israel on the eviction of six Palestinian families a neighbourhood of occupied East Jerusalem.
  • Israel’s operation “Guardian of the Walls” began with attacks on Hamas (a fundamentalist Palestinian group) tunnels close to the border fence with Israel.
  • India has adopted a balanced approach to the current Israeli-Palestine conflict that has pushed the volatile region into yet another cycle of violence.

India’s long-standing position

  • India has since long been maintaining that the Israel-Palestine conflict should be resolved through negotiation resulting in sovereign, independent, viable and united State of Palestine, with East Jerusalem as its capital.
  • India has urged both countries to “engage with each other, including on the recent proposals put forward by the United States, and find an acceptable two-state solution for peaceful coexistence”.

The dilemma

  • India seems to strive to maintain a balance between India’s historic ties with Palestine and its blossoming relations with Israel.
  • The request that both sides refrain from “attempts to unilaterally change the existing status quo including in East Jerusalem and its neighbourhoods” seems to be a message to Israel about its settler policy.
  • The statement was also emphatic that “the historic status quo at the holy places of Jerusalem including the Haraml al-Sharif/Temple Mount must be respected”.

Ties with spikes

  • India’s policy on the longest-running conflict in the world has gone from being unequivocally pro-Palestine for the first four decades, to a tense balancing act with its three-decade-old friendly ties with Israel.
  • In recent years, India’s position has also been perceived as pro-Israel.

From Nehru to Rao

  • The balancing began with India’s decision to normalize ties with Israel in 1992, which came against the backdrop of the break-up of the Soviet Union.
  • There were massive shifts in the geopolitics of West Asia on account of the first Gulf War in 1990.
  • That year, the Palestinian Liberation Organisation (PLO) lost much of its clout in the Arab world by siding with Iraq and Saddam Hussein in the occupation of Kuwait.
  • The opening of an Indian embassy in Tel Aviv in January 1992 marked an end to four decades of giving Israel the cold shoulder, as India’s recognition of Israel in 1950 had been minus full diplomatic ties.
  • PM Nehru’s reasoning for the decision to recognise Israel was that it was “an established fact”, and that not doing so would create bitterness between two UN members.

Why did India then support Palestine?

  • In 1948, India was the only non-Arab-state among 13 countries that voted against the UN partition plan of Palestine in the General Assembly that led to the creation of Israel.
  • Scholars ascribe various reasons for this India’s own Partition along religious lines; as a new nation that had just thrown off its colonial yoke; solidarity with the Palestinian people who would be dispossessed; and to ward off Pakistan’s plan to isolate India over Kashmir.
  • Later, India’s energy dependence on the Arab countries also became a factor, as did the sentiments of India’s own Muslim citizens.

India and Palestine

  • The relationship with Palestine was almost an article of faith in Indian foreign policy for over four decades.
  • At the 53rd UN session, India co-sponsored the draft resolution on the right of the Palestinians to self-determination.
  • In the 1967 and 1973 wars, India lashed out at Israel as the aggressor.
  • In the 1970s, India rallied behind the PLO and its leader as the sole and legitimate representative of the Palestinian people.
  • In 1975, India became the first non-Arab country to recognise the PLO as the sole representative of the Palestinian people and invited it to open an office in Delhi.
  • In 1988, when the PLO declared an independent state of Palestine with its capital in East Jerusalem, India granted recognition immediately.

Continuity for the cause

  • India voted in favour of the UN General Assembly resolution in October 2003 against Israel’s construction of a separation wall.
  • It voted for Palestine to become a full member of UNESCO in 2011, and a year later, co-sponsored the UNGA resolution that enabled Palestine to become a “non-member” observer state at the UN without voting rights.
  • India also supported the installation of the Palestinian flag on the UN premises in September 2015.

Changes after 2014

  • For two-and-a-half decades from 1992, the India-Israel relationship continued to grow, mostly through defence deals, and in sectors such as science and technology and agriculture.
  • But India never acknowledged the relationship fully.
  • There were few high-profile visits, and they all took place when the PM Vajpayee was in office.
  • Israel was perceived as an ideal of a “strong state” that deals “firmly” with “terrorists”.
  • It was during NDA-2 that the government under PM Modi decided to take full ownership of the relationship with Israel.

Balancing act

  • Meanwhile, India continues to improve ties with Arab countries, especially Saudi Arabia and the UAE and feels vindicated by the decision of some Arab states to improve ties with Israel.
  • For instance, even as it abstained at UNESCO in December 2017, India voted in favour of a resolution in the UNGA opposing Trump’s recognition of Jerusalem as the Israeli capital.

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Creating a new District

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Creation of an administrative district

Mains level: Not Much

Punjab CM has recently declared Malerkotla the 23rd district of the State.

How are new districts carved?

  • The power to create new districts or alter or abolish existing districts rests with the State governments.
  • This can either be done through an executive order or by passing a law in the State Assembly.
  • Many States prefer the executive route by simply issuing a notification in the official gazette.

How does it help?

  • States argue that smaller districts lead to better administration and governance.
  • For example, in 2016, the Assam government issued a notification to upgrade the Majuli sub-division to the Majuli district for “administrative expediency”.

Are there are any exceptions?

  • The State government has been vested with unfettered powers under Section 5 of the Punjab Land Revenue Act, 1887 to create new districts.
  • This power is generally held temporarily in abeyance only during active census operations or during the delimitation exercise of Lok Sabha/Vidhan Sabha constituencies.

Answer this PYQ in the comment box:

Q. The Constitution (Seventy-Third Amendment) Act, 1992, which aims at promoting the Panchayati Raj Institutions in the country, provides for which of the following?

  1. Constitution of District Planning Committees.
  2. State Election Commissions to conduct all panchayat elections.
  3. Establishment of State Finance Commissions.

Select the correct answer using the codes given below:

(a) Only 1

(b) 1 and 2 only

(c) 2 and 3 only

(d) 1, 2 and 3

Does the Central government have a role to play here?

  • The Centre has no role to play in the alteration of districts or creation of new ones. States are free to decide.
  • The Home Ministry comes into the picture when a State wants to change the name of a district or a railway station.
  • The State government’s request is sent to other departments and agencies such as the Ministry of Earth Sciences, Intelligence Bureau, Department of Posts, Geographical Survey of India Sciences and the Railway Ministry seeking clearance.
  • A no-objection certificate may be issued after examining their replies.

What has been the trend?

  • According to the 2011 Census, there were 593 districts in the country.
  • The Census results showed that between 2001-2011, as many as 46 districts were created by States.
  • Though the 2021 Census is yet to happen, Know India, a website run by the Government of India, says currently there are 718 districts in the country.
  • The surge in number is also due to the bifurcation of Andhra Pradesh into A.P and Telangana in 2014. Telangana at present has 33 districts and A.P has 13 districts.

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Legislative Council in States: Issues & Way Forward

West Bengal government to set up a Legislative Council

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Legislative council

Mains level: Need for creation of LCs

The West Bengal government will set up a Legislative Council (Vidhan Parishad), as per a decision taken up at the Cabinet meeting chaired by its Chief Minister.

What is a State Legislative Council?

  • The SLC is the upper house in those states of India that have a bicameral state legislature; the lower house being the State Legislative Assembly.
  • As of Jan 2020, 6 out of 28 states have a State Legislative Council. These are Andhra Pradesh, Karnataka, Telangana, Maharashtra, Bihar, and Uttar Pradesh The latest state to have a council is Telangana.

Creation and abolition

  • According to Article 169, the Parliament can create or abolish the SLC of a state if that state’s legislature passes a resolution for that with a special majority.
  • The existence of an SLC has proven politically controversial.
  • A number of states that have had their LCs abolished have subsequently requested its re-establishment; conversely, proposals for the re-establishment of the LC for a state have also met with opposition.

Its composition

  • The size of the SLC cannot be more than one-third of the membership of the State Legislative Assembly.
  • However, its size cannot be less than 40 members.
  • These members elect the Chairman and Deputy Chairman from the Council.

MLCs are chosen in the following manner:

  • One third are elected by the members of local bodies such as municipalities, Gram panchayats, Panchayat samitis and district councils.
  • One third are elected by the members of Legislative Assembly of the State from among the persons who are not members of the State Legislative Assembly.
  • One sixth are nominated by the Governor from persons having knowledge or practical experience in fields such as literature, science, arts, the co-operative movement and social services.
  • One twelfth are elected by persons who are graduates of three years’ standing residing in that state.
  • One twelfth are elected by teachers who had spent at least three years in teaching in educational institutions within the state not lower than secondary schools, including colleges and universities.

Answer this PYQ in the comment box:

Q.Consider the following statements:

  1. The Legislative Council of a State in India can be larger in size than half of the Legislative Assembly of that particular State.
  2. The Governor of a State nominates the Chairman of Legislative Council of that particular State.

Which of the statements given above is/are correct?

(a) Only 1

(b) Only 2

(c) Both 1 and 2

(d) Neither 1 nor 2

Powers and functions

  • The Constitution of India gives limited power to the State Legislative Council.
  • The State Legislative Council can neither form nor dissolve a state government.
  • The State Legislative Council also have no role in the passing of money bills.
  • But some of the powers it has is that the Chairman and Deputy Chairman of the State Legislative Council enjoy the same status as Cabinet Ministers in the state.

Issues with LC

  • It was argued that a second House can help check hasty actions by the directly elected House, and also enable non-elected persons to contribute to the legislative process.
  • However, it was also felt that some of the poorer states could ill afford the extravagance of two Houses.
  • It has been pointed out that the Councils can be used to delay important legislation and to park leaders who have not been able to win an election.

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Electoral Reforms In India

Independent panel to appoint EC members

Note4Students

From UPSC perspective, the following things are important :

Prelims level: ECI

Mains level: Various constitutional bodies

A petition was filed in the Supreme Court seeking the constitution of an independent collegium to appoint members of the Election Commission.

Election Commission of India (ECI)

  • The ECI is a constitutional body responsible for administering elections in India according to the rules and regulations mentioned in the Constitution of India.
  • It was established on January 25, 1950.
  • The major aim of the election commission of India is to define and control the process for elections conducted at various levels, Parliament, State Legislatures, and the offices of the President and Vice President of India.
  • It can be said that the Election Commission of India ensures the smooth and successful operation of the democracy.

Functions

According to Article 324 of the Indian Constitution:

  • the ECI has superintendence, direction, and control of the entire process for conduct of elections to Parliament and Legislature (state legislative assembly & state legislative council) of every State and to
  • the offices of President and Vice-President of India

Answer this PYQ in the comment box:

Q.Consider the following statements:

  1. The Election Commission of India is a five-member body.
  2. Union Ministry of Home Affairs decides the election schedule for the conduct of both general elections and bye-elections.
  3. Election Commission resolves the disputes relating to splits/mergers of recognized political parties.

Which of the statements given above is/are correct? (CSP 2017)

(a) 1 and 2 only

(b) 2 only

(c) 2 and 3 only

(d) 3 only

Its composition

  • Initially, the commission had only a Chief Election Commissioner. Presently, it consists of a Chief Election Commissioner and two Election Commissioners.
  • For the first time, two additional Commissioners were appointed on 16th October 1989 but they had a very short term till 1st January 1990.
  • Afterwards, on 1st October 1993, two additional Election Commissioners were appointed.
  • The concept of a multi-member Commission has been in operation since then, with decision-making power by majority vote.

Appointment & Tenure of Commissioners

  • The President has the power to select Chief Election Commissioner and Election Commissioners.
  • They have a tenure of six years, or up to the age of 65 years, whichever is earlier.
  • They have the same status and receive pay and perks as available to Judges of the Supreme Court of India.
  • The CEC can be removed from office only through accusation by Parliament.
  • The election commissioner or a regional commissioner shall not be removed from office except on the recommendation of the CEC.

Why such demand for independent collegium?

  • The plea filed has said that the practice of government making the appointments is a violation of the Basic Structure of the Constitution and creates a dent in free and fair elections in a democracy.
  • The petition said the recommendation to have a neutral collegium to fill up vacancies in the Election Commission has been given by several expert committees, commissions from 1975.
  • The recommendation was also part of the Law Commission in its 255th report in March 2015.

Basis for such demand

  • The EC is not only responsible for conducting free and fair elections, but it also renders a quasi-judicial function between the various political parties including the ruling government and other parties.
  • In such circumstances, the Executive cannot be the sole participant in the appointment of members of the Election Commission as it gives unfettered discretion to the ruling party.
  • Therefore it could appoint someone whose loyalty is ensured and thereby renders the selection process vulnerable to manipulation.

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Capital Markets: Challenges and Developments

SEBI proposes framework for Gold Exchange

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Gold Exchange

Mains level: Gold Exchange and its trading

The Securities & Exchange Board of India (SEBI) has floated a consultation paper on the proposed framework for Gold Exchange in India.

Why such a move?

  • According to SEBI, the proposed exchange would bring in more transparency in the gold trading market in terms of spot price discovery, quality of the gold and enable greater integration with the financial markets.

What is a Gold Exchange?

  • As the name suggests, this would offer trading facilities in the precious metal.
  • Entities like retail investors, banks, foreign portfolio investors (FPIs), jewellers and bullion dealers among others would be allowed to trade on the exchange.
  • While there are existing commodity exchanges that offer trading in gold contracts, those are derivative instruments while the proposed gold exchange would allow trading akin to the spot market.
  • This move assumes significance as India is the second-largest consumer of gold – after China – with an annual demand of around 800-900 tonnes.

Answer this PYQ:

Q.What is/are the purpose/purposes of the Government’s ‘Sovereign Gold Bond Scheme’ and ‘Gold Monetization Scheme’?

  1. To bring the idle gold lying with India households into the economy
  2. To promote FDI in the gold and jewellery sector
  3. To reduce India’s dependence on gold imports

Select the correct answer using the code given below

(a) 1 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

What are the ways in which one can invest in gold now?

  • For those wanting to buy physical gold, a visit to the neighbourhood jeweller would suffice.
  • Meanwhile, there are online platforms such as Paytm, Kuvera and Indiagold among others that allow an individual to buy gold in digital form.
  • The advantage of buying gold in digital form is that one can put in a very small amount as well with some platforms allowing a minimum investment of just Rs 100.
  • Digital gold products have become quite popular among millennials. Then there are sovereign gold bonds issued by the government.
  • One can even look at Gold ETFs or gold funds by mutual funds.
  • Even gold derivative contracts traded on the exchanges have the option of physical settlement, which means investors can get physical delivery of gold.

How can one trade on a gold exchange?

  • The SEBI has proposed an instrument called ‘Electronic Gold Receipt’, or EGR.
  • The gold exchange, along with intermediaries like the vault manager and the clearing corporation, would facilitate the creation of EGR and its trading.
  • So, participants can convert their physical gold into EGR, which can then be bought or sold on the exchange like any normal equity share of a listed company.
  • The EGR can even be converted back into physical gold. As part of the draft regulations, SEBI has proposed three denominations of EGR – one kilogram, 100 grams and 50 grams.
  • It has, however, added that EGRs of five grams or 10 grams can also be allowed for trading to increase the liquidity of the market and attract more participants.

How can one convert physical gold into EGRs?

  • An entity that intends to convert physical gold into EGR will have to go to a ‘Vault Manager’.
  • According to the proposed framework, any entity registered in India and with a net worth of at least Rs 50 crore can apply to become a vault manager.
  • After the receipt of the gold, the vault manager would create an EGR for which the depository will assign an International Securities Identification Number, or ISIN, which is a unique code to identify the specific security.
  • Once the ISIN is issued, the EGR can be traded on the gold exchange just like any other tradable security.

Can EGRs be again converted into physical gold?

  • To convert an EGR into physical gold, the owner of the EGR will have to surrender the EGR to the vault manager who will deliver the gold and extinguish the electronic receipt.
  • Considering the logistics and delivery challenges, it has been proposed that conversion of an EGR into physical gold should be allowed only if a minimum of 50 grams of gold has been accumulated in electronic form.

Issues with gold exchange

  • Since the EGRs would be traded on an exchange, Securities Transaction Tax (STT) would be levied. Also, GST would be applicable when EGRs are converted into physical gold for withdrawal.
  • If in case the buyer and seller are from different states then levying state GST could be cumbersome. SEBI is mulling if only IGST or Integrated Goods and Services Tax can be levied to resolve this issue.
  • As far as transactions are concerned, SEBI working groups have suggested that an entire transaction be divided into three tranches.

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Health Sector – UHC, National Health Policy, Family Planning, Health Insurance, etc.

Brain drain of India’s health worker

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much

Mains level: Paper 2- India's health worker brain drain

The article highlights the issue of shortage of healthcare workers in India even as it exports its healthcare workers to other countries.

India as an exporter of healthcare workers

  • For several decades, India has been a major exporter of healthcare workers to developed nations particularly to the Gulf Cooperation Council countries, Europe and other English-speaking countries.
  • As per OECD data, around 69,000 Indian trained doctors worked in the UK, US, Canada and Australia in 2017.
  • In these four countries, 56,000 Indian-trained nurses were working in the same year.
  • There is also large-scale migration of health workers to the GCC countries but there is a lack of credible data on the stock of such workers in these nations.
  • There is no real-time data on high-skilled migration from India as in the case of low-skilled and semi-skilled migration.

Shortage of nurses and doctors

  • The migration of healthcare workers is part of the reason for the shortage in nurses and doctors.
  • If we look at the figures for countries where we export our healthcare workers, we see just how big the difference is between the sending and the receiving countries.
  • As per government reports, India has 1.7 nurses per 1,000 population and a doctor to patient ratio of 1:1,404.
  • This is well below the WHO norm of 3 nurses per 1,000 population and a doctor to patient ratio of 1:1,100.
  • But, this does not convey the entire problem.
  • The distribution of doctors and nurses is heavily skewed against some regions.
  • Moreover, there is high concentration in some urban pockets.

Factors driving migration

  • There are strong pull factors associated with the migration of healthcare workers, in terms of higher pay and better opportunities in the destination countries.
  • However, there are strong push factors that often drive these workers to migrate abroad.
  • The low wages in private sector outfits along with reduced opportunities in the public sector plays a big role in them seeking employment opportunities outside the country.
  • The lack of government investment in healthcare and delayed appointments to public health institutions act as a catalyst for such migration.

Measures to check brain drain and issues with it

  • Over the years, the government has taken measures to check the brain drain of healthcare workers with little or no success.
  • In 2014, it stopped issuing No Objection to Return to India (NORI) certificates to doctors migrating to the US.
  • The NORI certificate is a US government requirement for doctors who migrate to America on a J1 visa and seek to extend their stay beyond three years.
  • The non-issuance of the NORI would ensure that the doctors will have to return to India at the end of the three-year period.
  • The government has included nurses in the Emigration Check Required (ECR) category.
  • This move was taken to bring about transparency in nursing recruitment and reduce the exploitation of nurses in the destination countries.
  • The government’s policies to check brain drain are restrictive in nature and do not give us a real long-term solution to the problem.

Way forward

  • We require systematic changes that could range from increased investment in health infrastructure, ensuring decent pay to workers and building an overall environment to motivate them to stay in the country.
  • The government should focus on framing policies that promote circular migration and return migration — policies that incentivise healthcare workers to return home after the completion of their training or studies.
  •  It could also work towards framing bilateral agreements that could help shape a policy of “brain-share” between the sending and receiving countries.
  • The 2020 Human Development Report shows that India has five hospital beds per 10,000 people — one of the lowest in the world.
  • Increased investment in healthcare, especially in the public sector, is thus the need of the hour.
  • This would, in turn, increase employment opportunities for health workers.

Consider the question “What are the factors driving the migration of healthcare workers from India? Suggest the measure to stem their migration.”

Conclusion

India needs systematic changes that could range from increased investment in health infrastructure, ensuring decent pay to health workers and building an overall environment that could prove to be beneficial for them and motivate them to stay in the country.

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Foreign Policy Watch: India-China

The costs of relying on China to become more apparent to India’s neighbours

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much

Mains level: Paper 2- China's wolf warrior foreign policy and its implications for India's neighbours

The article explains the implications of China’s assertive foreign policy for India’s neighbours.

Chinese warning to Bangladesh

  • The Chinese ambassador to Bangladesh warned Bangladesh against joining the Quad and added that it will risk “significant damage” to its relationship with Beijing if it warms up to the Quad.
  • This came as a surprise as China was warning Bangladesh against joining a club that has no plans to invite new members, let alone Bangladesh.
  • China always used tough language when it came to issues of its sovereignty and territorial integrity.
  • The aggressive style now covers a much broader range of issues.
  • Beijing is conscious that Bangladesh’s impressive economic performance in recent years as well as its location at the top of the Bay of Bengal littoral lends a new strategic salience to Bangladesh.
  • China notes India’s growing diplomatic investment in developing a strategic partnership with Bangladesh.
  • China is also not blind to the emerging interest in US and Japan to expand cooperation with Dhaka.
  • Bangladesh, which supports China’s Belt and Road Initiative, is open to similar infrastructure cooperation with the US, Japan and India.

China’s wolf worrier diplomacy

  • The new wolf warrior diplomacy confronts head-on any criticism of China in the public sphere.
  • India has been at the receiving end of this policy for a while — especially during the recent crises of Doklam and Ladakh.
  • But India’s South Asian neighbours, all of whom enjoy good relations with China, are only now getting a taste of Beijing’s new diplomatic medicine.
  • Chinese Ambassador’s public remarks about the Quad were about telling Bangladesh to resist any Indo-Pacific temptation.
  • Pre-emption is very much part of Beijing’s strategic culture.

What such assertive diplomacy mean for South Asia

  • Delhi has learnt after long that too much diplomatic interference in the Subcontinent has tended to undermine the pursuit of India’s regional objectives.
  • China, as the world’s newest superpower, probably bets that its substantive leverages — including economic, diplomatic, and military — will limit the costs while deterring smaller nations from crossing the markers that it lays down.
  • South Asian elites have always seethed at India meddling in their internal affairs; they have held up China’s non-interventionist policy as a welcome alternative.
  • The controversy in Bangladesh over China’s remark on joining Quad should help update their past images of Beijing
  • India is now more circumspect than before about interventions in the region.
  • It recognises that avoiding knee-jerk interventions is a sensible policy.
  • Our neighbours have always complained about India’s inefficiency in implementing economic projects and contrasted this with China’s speed and purposefulness.
  • But they are also discovering the flip side of Chinese economic efficiency — the capacity to set and implement terms of cooperation that are not always in favour of the host nation.
  • All the regimes in the region have had access to different sections of the Indian elite and some capacity to shape the discourse on neighbourhood policies.
  • They have no political recourse at all in China’s closed political system.

Consider the question “As Beijing becomes ever more assertive in South Asia, the costs of relying on China are likely to become more apparent to South Asia’s smaller nations. Comment.”

Conclusion

Until now, Chinese support against India seemed free of cost. As Beijing becomes ever more assertive in South Asia, the costs of relying on China are likely to become more apparent.

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Need for West Asia’s diplomatic resets

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much

Mains level: Paper 2- Factors driving engagement among West Asian countries

The article highlights the unprecedented engagement among the countries of West Asia even among the rivals and explains its significance.

New diplomatic engagements in West Asia

  • Recently, there have been interactions between senior Saudi and Iranian officials, the first since diplomatic ties were broken in January 2016.
  • Following the removal of the diplomatic and economic blockade on Qatar that was imposed by Saudi Arabia, the United Arab Emirates, Bahrain and Egypt, Doha has made efforts to mend ties with both Saudi Arabia and Egypt, in tandem with similar initiatives of its doctrinal and political ally, Turkey.
  • On May 5, Turkey and Egypt had their first diplomatic meeting in Cairo after they had broken diplomatic ties in 2013.
  • The two countries, on opposite sides on almost all regional issues, are now exploring how to address their differences.

Driving force behind these engagements

  • The driving force behind these unprecedented engagements is the advent of the Biden administration at the helm of politics in the United States.
  • He has taken a tough line on Saudi Arabia, scrutinising its human rights record and opposition to the war in Yemen.
  • Besides concerns in West Asian capitals, the broader message is that the U.S. is now likely to be less engaged with the region’s quarrels.
  • These signals of new U.S. policies have occurred even as the novel coronavirus pandemic is devastating West Asia.
  • Finally, one major factor is the recognition that the ongoing regional conflicts, in Syria, Yemen and Libya, despite the massive death and destruction, have yielded no military outcome and now demand fresh diplomatic approaches.

Long way to go in resolving differences

  • Egypt remains uneasy about Turkey’s ties with the Brotherhood and its regional ambitions.
  • Saudi Arabia has similar concerns about Turkey’s doctrinal affiliations and its relations with Iran.
  • There are difficulties in reshaping Saudi-Iran relations as well.
  • Iran may ease the pressure on the kingdom in Yemen and gradually yield ground in Iraq.
  • However, Syria will test their diplomatic skills as they explore how to accommodate their competing strategic interests in that devastated country.

Historic period for West Asian diplomacy

  • This is truly a historic period for West Asian diplomacy.
  • The major states are displaying unprecedented self-confidence in pursuing initiatives without the involvement of western powers that have dominated regional affairs for at least a couple of centuries.
  • This has left a pervasive sense of insecurity across West Asia and made the countries dependent on western alliances to ensure their interests.
  • This has left a pervasive sense of insecurity across West Asia and made the countries dependent on western alliances to ensure their interests.

Role for India

  • Given that regional contentions are inter-connected, third-party facilitators will be needed to promote mutual confidence and prepare the ground for a comprehensive regional security arrangement.
  • This will bring together regional and external states with a stake in West Asia security.
  • This arrangement will have provisions for participating states to uphold regional peace and promote mutually beneficial cooperation in energy, economic and logistical connectivity areas.
  • Given its close ties with all the regional states, India is well-placed to build an association of like-minded states — Japan, Russia, South Korea — to shape and pursue such an initiative for West Asian peace.

Conclusion

These new diplomatic engagements with erstwhile rivals could in time overturn existing regional alignments and possibly end ongoing conflicts.

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Intellectual Property Rights in India

India should walk the talk on TRIPS waiver

Note4Students

From UPSC perspective, the following things are important :

Prelims level: TRIPS

Mains level: Paper 3- TRIPS waiver and India's stand

The article highlights the variance in India’s stand on intellectual property rights waiver for Covid related drugs on the international level and domestic level. 

Removing the IPR barrier

  • When the pandemic hit the globe, India and South Africa piloted the proposal to waive key provisions of the Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreement on COVID-19 vaccines, drugs, therapeutics, and related technologies.
  • The core idea is that IPRs such as patents should not become barriers in scaling up production of medical products essential to combat COVID-19.
  • The TRIPS waiver proposal, now backed by the U.S. would give immunity to member countries from a legal challenge at the WTO if their domestic IPR laws suspend or do not enforce IP protection on COVID-19 medical products.
  • Member countries of the World Trade Organization (WTO) are under an obligation to ensure that their domestic intellectual property rights (IPR) laws conform to the requirements of the TRIPS agreement.

No use of compulsory licencing in India

  • The existing flexibilities under the Patents Act of 1970, such as compulsory licences, which are consistent with the TRIPS agreement, can be used to increase the supply of COVID-19 medical products.
  • However, despite the nudging by the judiciary and others, the government inexplicably hasn’t made use of compulsory licences in the pandemic.
  • While issuing compulsory licences for COVID-19 vaccines in the absence of technology transfer is easier said than done, they can be used to augment the supply of drugs and other therapeutics.
  • For instance, there are demands that compulsory licences be issued for drugs such as Remdesivir to augment supply.
  • Natco, an Indian pharmaceutical company, has requested a compulsory licence under Section 92 of the Patents Act for Baricitinib, a COVID-19 drug.
  • This is ironic because India has historically played a leading role in mainstreaming TRIPS flexibilities like the compulsory licence at the WTO.
  • The Central government, in an affidavit filed before the Supreme Court, states that the main constraint in boosting the production of drugs like Remdesivir is the unavailability of raw materials and essential inputs.
  • The affidavit further states, “it is presumptuous to assume that the patent holder will not agree to more voluntary licences”.

Issues with the government’s stand

  •  If that is the real bottleneck, and not IPR-related legal hurdles, why is India pushing for a TRIPS waiver at the WTO?
  • The first step in advocating for the removal of IPR-related impediments at the WTO is to make use of the existing lawful means.
  • Therefore, the government’s stand before the Supreme Court is not only contradictory with India’s position at the WTO but also severely undermines it.

Way forward

  • To make its TRIPS waiver stand convincing, the government needs to make aggressive use of Sections 92 and 100 of the Patents Act to license all patents necessary to make COVID-19 medical products.
  • The government should not only transfer Covaxin’s technology to domestic pharmaceutical companies, to boost national supplies, but also offer it to foreign corporations. 
  •  By unlocking its vaccine technical know-how to the world, India would demonstrate its resolve to walk the talk on the TRIPS waiver.

Conclusion

India must take a consistent stand on IPRs on COVID-19 medical products internationally and domestically.

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Labour, Jobs and Employment – Harmonization of labour laws, gender gap, unemployment, etc.

Why has Indian manufacturing been losing jobs since 2016?

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not Much

Mains level: Unemployment issues in India

The State of Working India (SWI) 2021 has documented the impact of one year of Covid-19 in India, on jobs, incomes, inequality, and poverty.

Highlights of the SWI 2021

  • The SWI 2021 showed that the pandemic had forced people out of their formal jobs into casual work, and led to a severe decline in incomes.
  • There is a sudden increase in poverty over the past year.
  • Maharashtra, Kerala, Tamil Nadu, Uttar Pradesh, and Delhi, contributed disproportionately to job losses.
  • Unsurprisingly, these are also the states that suffered the maximum Covid caseload.

Labour Participation Rate (LPR) is the ratio of the labour force to the population greater than 15 years of age. It is defined as the section of working population in the age group of 16-64 in the economy currently employed or seeking employment.

Worsened with COVID

  • It pointed to an ailment of the Indian economy that has not only been a longstanding one but also one that has gotten worse over the past few years even without the help of Covid.
  • Agriculture, mines, manufacturing, real estate and construction, financial services, non-financial services, and public administrative services sectors account for 99% of total employment in India.
  • The number of people employed in the manufacturing sector of the economy has come down from 51 million to 27 million — that is, almost halving in the space of just four years!
  • For instance, the number of people employed in agriculture is going up.
  • Equally disheartening is that employment in non-financial services (such as providing education and entertainment industry etc.) has fallen sharply.

Why are these trends worrisome?

  • It is important to understand that traditionally Indian policymakers have been of the view that the manufacturing sector is our best hope to soak up the surplus-labour otherwise employed in agriculture.
  • Manufacturing is well suited because it can make use of the millions of poorly educated Indian youth, unlike the services sector, which often requires better education and skill levels.
  • For the longest time, India has struggled to get its manufacturing industries to create a growing bank of jobs.
  • But, and this is what the CMIE data shows, what is happening in the past 4-5 years is that far from soaking up excess labour from other sectors of the economy, manufacturing is actually letting go of workers.

Return to Agriculture

  • India has seen a hike in the number of people “employed” in agriculture over the past year.
  • This is nothing but disguised unemployment.
  • Essentially, labourers and workers are returning to their rural homes in the absence of jobs either in manufacturing or services.

Why is Indian manufacturing failing to create jobs?

  • On the face of it, every past government has come out with a policy to boost manufacturing jobs. But still, the situation is getting worse.
  • There are different ways to look at this question.
  1. One is to look at why manufacturing has struggled to create as many jobs in the past
  2. The second is to look at the specific reasons why manufacturing has been bleeding jobs, instead of creating them, since 2016-17.

Let’s tackle the historical question first.

  • If one looks at any of the sectors in the economy — agriculture, industry, services — starting a manufacturing unit requires the highest amount of fixed investment upfront (relative to the output that may be generated later).
  • In other words, it is a big commitment on the part of an entrepreneur to put up a huge amount of money without necessarily knowing how it will all pan out.
  • What has traditionally made this truly risky is the highly extractive nature of governments.
  • In simpler terms, far too often governments have been corrupt, with officials and politicians extracting bribes.

Less focus on manufacturing goods

  • As regards the demand for manufacturing goods, experts point out that Indians have always consumed relatively less of manufacturing goods and relatively more of food and services.

There are two possible reasons for this.

  1. One, most Indians are quite poor and hence most of the income is spent on food.
  2. Two, repairs and maintenance are a very high part of our consumption choice.
  • In other words, when Indians buy a manufactured product — say a refrigerator — they tend to use it for much longer than in developed countries.

Core of the problem

  • The trouble lies with policymakers repeatedly neglecting the labour-intensive industries.
  • Since the second five year plan, the P C Mahalanobis strategy was to gain self-reliance by investing in capital intensive industries so that India does not have to import machines etc. from other countries.
  • The hope was that the demand from Indian consumers will make the domestic industry viable.
  • But Indian domestic demand was quite anaemic due to poverty levels.

Other policy lacunas

  • As against the capital intensive industries, which were involved in making heavy machines, the labour-intensive ones (such as leather, handicrafts, textiles etc.) were reserved for the small-scale industry framework.
  • But while the labour-intensive manufacturing firms could not match the capital-intensive firms in terms of GDP value or growth of output, they did have a distinct advantage of creating more jobs.
  • But, by treating them as small-scale industries, policies held back their growth.
  • Moreover, India did not push for integrating its labour-intensive manufacturing in the global supply chains by aggressively following exports.
  • Instead, the idea was to substitute imports in the name of self-reliance.

What has happened since 2016-17?

  • Things have become worse over the past five odd years despite the Indian government unveiling its ambitious Make in India (MII) initiative and the latest Production-Linked Incentive (PLI) scheme.
  • For one India is repeating the same mistakes with MII and PLI schemes.
  • They are again aimed more at capital intensive manufacturing, not labour intensive ones.
  • Moreover, India is reverting to the protectionist approach, aimed at self-reliance, yet again in recent years.
  • Further, much like in the past, this time, too, the domestic demand is weak for aggressively boosting labour-intensive industries aimed at capturing the export markets.

Conclusion

  • The growing rift in the fortunes of informal and formal manufacturing could be the reason why India is seeing such a massive decline in manufacturing jobs.
  • The government has tried its level best to push for greater formalization but it has often been accused of not understanding the nature and functioning of India’s informal economy.

Way forward

  • For the same level of employment, formality is good.
  • But if there is a trade-off between formality and employment generation, choosing formality may not be so beneficial. And this trade-off appears to be quite sharp in India.
  • Indian manufacturing is still at best hope for creating new jobs and soaking up excess unskilled labour through better infrastructure and easier regulatory support — to create millions of new jobs.

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