Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: Incredible India
“To other Country, I may go as a tourist. But to India I come as a pilgrim”, the words of Martin Luther King says a lot about India’s wisdom and tourism potential.
Context
- The three-day National Conference of State Tourism Minister was held at Dharamshala , a first of its kind meeting aimed to discuss, debate and deliberate on modes and mechanisms to develop tourism in India .
- The three-day National Conference concluded with the adoption of “Dharamshala Declaration” which affirms commitment toward developing “sustainable and responsible tourism” and positions India as a “global leader in the tourism sector by 2047”.
What is tourism?
- Tourism is travel for pleasure or business; also the theory and practice of touring, the business of attracting, accommodating, and entertaining tourists, and the business of operating tours.
Types of tourism
- Domestic tourism: Refers to activities of a visitor within their country of residence and outside of their home (e.g. a Indian visiting other parts of India)
- Inbound tourism: Refers to the activities of a visitor from outside of country of residence (e.g. a Spaniard visiting Britain).
- Outbound tourism: Refers to the activities of a resident visitor outside of their country of residence (e.g. an Indian visiting an overseas country).
What does sustainable tourism mean?
- Sustainable tourism is defined by the UN Environment Program and UN World Tourism Organization as “tourism that takes full account of its current and future economic, social and environmental impacts, addressing the needs of visitors, the industry, the environment and host communities.”
What is the main importance of tourism?
- Tourism boosts the revenue of the economy, creates thousands of jobs, develops the infrastructures of a country, and plants a sense of cultural exchange between foreigners and citizens.
Why tourism is needed?
- Tourism is not a fad. It is a compulsion driven by the urge to discover new places. Because we have this compulsion to venture into the unknown, we need each other. When humans travel, meet and exchange ideas, civilization flourishes.
What is “The Dharamshala Declaration” is all about?
- Aim of the declaration: The Dharamshala Declaration aims to recognise India’s role in contributing towards global tourism as well as focusing on recovery by also promoting domestic tourism.
- Action plan: In the declaration, the Tourism Ministry has come up with a with a action plan to encourage more Indians to travel domestically and explore India’s natural, cultural, and spiritual beauty while simultaneously reaching the goal of an ‘Ek Bharat Shrestha Bharat’ (interaction and mutual understanding).
- Strategy: The Tourism Ministry has also been working with the Ministry of External Affairs to identify 20 Indian missions abroad with the highest tourist footfalls to India and build country-specific strategies to attract foreign tourists.
- Plan according to G-20: The Dharamshala Declaration affirms the plan to position India as a major tourism destination during its presidency of G-20 next year. India’s age-old dictum of ‘Atithi Devo Bhava’ will come to the fore as it welcomes delegates from the 20 countries/European Union.
- Necessary steps: The Ministry of Tourism also plans to work with other Ministries to bring in necessary interventions such as visa reforms, ease of travel, travel-friendly and improved immigration facilities at airports.
- National Tourism policy: Drafted with a holistic vision and strategy to revive India’s tourism and targets to contribute USD 1 trillion to the GDP by 2047.
- Framework:
- Draft on National Tourism Policy 2022 aims at improving the framework conditions for tourism development in the country.
- Supporting tourism industries, strengthening tourism support functions and developing tourism sub-sectors.
- Impetus to digitalisation, innovation and technology through the National Digital Tourism Mission and skilling through the Tourism and Hospitality Sector Skill Mission.
- The policy also gives a special impetus to private sector participation through public-private-partnerships (PPP)
- Guiding Principles :
- Promoting sustainable, responsible and inclusive tourism in line with our civilisational ethos From Gautama to Gandhi, India has always spoken about the inherent need to live harmoniously with nature and within our means.
- The National Green Tourism Mission aims at institutionalising green approach.
- Employement generation: India has huge tourism potential. If capitalised properly it can emerge as one of the leading sectors to contribute to GDP and also has the potential to augment employment.
- The Pandemic cost and recovery: The pandemic has caused conspicuous losses for this sector but over the past few months, all the major tourism indices such as domestic air passenger traffic, hotel occupancy and tourist footfalls have shown signs of recovery and are going back to pre-pandemic levels.
- Short term estimate: By 2024, in short term the country is estimated to contribute USD 150 billion to the GDP from tourism, USD 30 billion in Foreign Exchange earnings and can get 15 million foreign tourist arrivals..
- Medium term by 2030: It is estimated to grow at seven to nine per cent Compound Annual Growth Rate in the coming decade. In the medium term, that is 2030, the tourism-related goals are USD 250 billion GDP contribution; 137 million jobs, 56 million foreign tourist arrivals and USD 56 billion in foreign exchange earnings.
- Visionary schemes: The visionary schemes like Swadesh Darshan or Dekho Apna Desh have the potential to increase tourism value while maintaining cultural integrity and ecological sustainability of the places.
- Dekho Apna Desh: Dekho apna desh rolled out in 2020 envisages encouraging domestic tourism, urging people to visit places in India. India is a land of rich cultural heritage.
Conclusion
- If the goal of positioning of India as one of the world’s best tourism destinations by 2047, there is need to integrate various schemes of different ministries. Need to involve various stakeholders, and local communities; necessary interventions at urban and rural level should be a priority.
Mains Question
Q.Since the positive and negative outcomes of tourism depend on human factors, including the attitude and behavior of both tourists and hosts, in this context discuss India’s potential to become a global leader in tourism sector.
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From UPSC perspective, the following things are important :
Prelims level: Teesta River
Mains level: India-Bangladesh Relations
India and Bangladesh should resolve all bilateral issues, including the differences over the waters of the Teesta, at an early date, said Bangladesh PM on her visit to India.
What is the news?
- Bangladeshi PM is on a visit to India.
- Both ministers discussed the long-standing disputes over Teesta river water sharing.
- The two sides shared 54 rivers that required both nations to work together and share “environmental responsibility” in areas such as the Sundarbans.
About Teesta River
- Teesta River is a 315 km long river that rises in the eastern Himalayas, flows through the Indian states of Sikkim and West Bengal through Bangladesh and enters the Bay of Bengal.
- It is a tributary of the Brahmaputra (known as Jamuna in Bangladesh), flowing through India and Bangladesh.
- It originates in the Himalayas near Chunthang, Sikkim and flows to the south through West Bengal before entering Bangladesh.
- Originally, it continued southward to empty directly into the Padma River but around 1787 the river changed its course to flow eastward to join the Jamuna river.
- The Teesta Barrage dam helps to provide irrigation for the plains between the upper Padma and the Jamuna.
What is the dispute about?
- The point of contention between India and Bangladesh is mainly the lean season flow in the Teesta draining into Bangladesh.
- The river covers nearly the entire floodplains of Sikkim while draining 2,800 sq km of Bangladesh, governing the lives of hundreds of thousands of people.
- For West Bengal, Teesta is equally important, considered the lifeline of half-a-dozen districts in North Bengal.
- Bangladesh has sought an “equitable” distribution of Teesta waters from India, on the lines of the Ganga Water Treaty of 1996, but to no avail.
- The failure to ink a deal had its fallout on the country’s politics, putting the ruling party of PM Sheikh Hasina in a spot.
Q.The hydrological linkages between India and Bangladesh are a product of geography and a matter of shared history. Discuss this statement in line with the Teesta water sharing dispute.
The deal
- Following a half-hearted deal in 1983, when a nearly equal division of water was proposed, the countries hit a roadblock. The transient agreement could not be implemented.
- Talks resumed after the Awami League returned to power in 2008 and the former Indian PM Manmohan Singh visited Dhaka in 2011.
- In 2015, PM Modi’s visit to Dhaka generated more ebullient lines: deliberations were underway involving all the stakeholders to conclude the agreement as soon as possible.
Issues from the Indian side
- It remains an unfinished project and one of the key stakeholders — West Bengal CM is yet to endorse the deal.
- Her objection is connected to “global warming. Many of the glaciers on the Teesta basin have retreated.
- The importance of the flow and the seasonal variation of this river is felt during the lean season (from October to April/May) as the average flow is about 500 million cubic metres (MCM) per month.
- The CM opposed an arrangement in 2011, by which India would get 42.5% and Bangladesh 37.5% of the water during the lean season, and the plan was shelved.
Why does this deal matters?
- India and Bangladesh have resolved border problems through the Land Boundary Agreement of 2015.
- However, both nations have locked horns over the sharing of multiple rivers that define the borders and impact lives and livelihoods on both sides.
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From UPSC perspective, the following things are important :
Prelims level: Places of Worship Act
Mains level: Issues with the Act
The Supreme Court has set the ball rolling on a series of petitions challenging the validity of the Places of Worship Act of 1991, a parliamentary law that protects the identity and character of religious places as on August 15, 1947.
What are the petitions about?
- A slew of petitions has been filed against the Act.
- The Act has fixed a retrospective cut-off date illegally barring Hindus, Jains, Buddhists and Sikhs from approaching courts to re-claim their places of worship which were invaded and encroached.
- The main objective of these petitions is to set right a historical wrong committed by barbaric invaders.
Places of Worship Act, 1991
- It was passed in 1991 by the P V Narasimha Rao-led government.
- The law seeks to maintain the “religious character” of places of worship as it was in 1947 — except in the case of the Ram Janmabhoomi-Babri Masjid dispute, which was already in court.
- The law was brought in at the peak of the Ram Mandir movement, exactly a year before the demolition of the Babri Masjid.
- Introducing the law, then Home Minister S B Chavan said in Parliament that it was adopted to curb communal tension.
What are its provisions?
What are its provisions?
- Anti-conversion: Section 3 of the Act bars the conversion, in full or part, of a place of worship of any religious denomination into a place of worship of a different religious denomination — or even a different segment of the same religious denomination.
- Holiness of a place: Section 4(1) declares that the religious character of a place of worship “shall continue to be the same as it existed” on August 15, 1947.
- Litigation: Section 4(2) says any suit or legal proceeding with respect to the conversion of the religious character of any place existing on August 15, 1947, pending before any court, shall abate — and no fresh suit or legal proceedings shall be instituted.
- Exception for Ayodhya: Section 5 stipulates that the Act shall not apply to the Ramjanmabhoomi-Babri Masjid case, and to any suit, appeal or proceeding relating to it.
Why is the law under challenge?
- The cut-off date of August 15, 1947, is “arbitrary, irrational and retrospective” and prohibits Hindus, Jains, Buddhists, and Sikhs from approaching courts to “reclaim” their places of worship.
- Such places, he argued, were “invaded” and “encroached” upon by “fundamentalist barbaric invaders”.
- The right-wing politicians have opposed the law even when it was introduced, arguing that the Centre has no power to legislate on “pilgrimages” or “burial grounds” which is under the state list.
- Another criticism against the law is that the cut-off is the date of Independence, which means that the status quo determined by a colonial power is considered final.
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From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: Quota for Locals
The Karnataka government recently tabled The Kannada Language Comprehensive Development Bill which gives preference to Kannadigas in government jobs and also provides for a reservation to locals in private jobs generated in the state.
What does the Karnataka legislation envisage?
- Apart from ensuring job guarantee to Kannada speakers, the Bill pushes for the use of Kannada in institutes of higher learning and for sops to industries that employ locals.
- Features highlighted in the Bill include reservation in higher, technical and professional education to those who studied in Kannada medium schools.
- It seeks introduction of Kannada as essential language for seeking employment in the state government.
- Also, industries will be entitled to concessions, tax rebates and deferment of taxes if they provide reservation for Kannadigas, as per the state’s industrial policy.
What is Quota for Locals?
Ans. Constitutional provision for Equal Treatment
- Article 16 of the Constitution guarantees equal treatment under the law in matters of public employment. It prohibits the state from discriminating on grounds of place of birth or residence.
- Article 16(2) states that “no citizen shall, on grounds only of religion, race, caste, sex, descent, place of birth, residence or any of them, be ineligible for, or discriminated against in respect of, any employment or office under the State”.
- The provision is supplemented by the other clauses in the Constitution that guarantee equality.
- However, Article 16(3) of the Constitution provides an exception by saying that Parliament may make a law “prescribing” a requirement of residence for jobs in a particular state.
- This power vests solely in the Parliament, not state legislatures.
Why does the Constitution prohibit reservation based on domicile?
- When the Constitution came into force, India turned itself into one nation from a geographical unit of individual principalities and the idea of the universality of Indian citizenship took root.
- India has single citizenship, and it gives citizens the liberty to move around freely in any part of the country.
- Hence the requirement of a place of birth or residence cannot be qualification for granting public employment in any state.
But are reservations not granted on other grounds such as caste?
- Equality enshrined in the Constitution is not mathematical equality and does not mean all citizens will be treated alike without any distinction.
- To this effect, the Constitution underlines two distinct aspects which together form the essence of equality law:
- Non-discrimination among equals, and
- Affirmative action to equalize the unequal
Supreme Court rulings on quota for locals
- The Supreme Court has ruled against reservation based on place of birth or residence.
- In 1984, ruling in Dr Pradeep Jain v Union of India, the issue of legislation for “sons of the soil” was discussed.
- The court expressed an opinion that such policies would be unconstitutional but did not expressly rule on it as the case was on different aspects of the right to equality.
- In a subsequent ruling in Sunanda Reddy v State of Andhra Pradesh (1995), the Supreme Court affirmed the observation in 1984 ruling to strike down a state government policy that gave 5% extra weightage to candidates.
- In 2002, the Supreme Court invalidated appointment of government teachers in Rajasthan in which the state selection board gave preference to “applicants belonging to the district or the rural areas of the district concerned”.
- In 2019, the Allahabad HC struck down a recruitment notification by the UP PSC which prescribed preference for women who are “original residents” of the UP alone.
Why it is a bad idea?
- Against Equality as well as meritocracy: It goes against the Constitution of India. In fact, it violates several fundamental rights, such as freedom to move anywhere, the right not to be discriminated on the basis of place of birth, the right to be treated equally before laws and the right to pursue one’s livelihood.
- Migration criteria not justified: The actual data on inter-State migration shows that inter-State migration is relatively low in India. Migration often bring skills, motivation, energy which may be in short supply or lacking locally.
- Free movement of labour: A more analytical aspect to highlight is that free movement of labour partly compensates for the uneven economic progress of different States. The idea also goes against the established fact that migration of labour is good for the economy.
- Un-ease of doing business: Local reservation in the private sector may not be the ideal solution to tackle the unemployment crisis. In fact, it can deter the corporate sector from investing in states that come up with such a rule.
- Scapegoating the private sector: What distinguishes the private sector from the public sector is the inherent competition and a hunger for improvement. In such a scenario, chief ministers should do well to engage with the private sector in a much more holistic manner, and not burden it with unfeasible rules.
- MSMEs to be hit harder: MSMEs could be the hardest hit. They do not have the necessary capital to relocate and many studies have shown that more than 50 per cent of employees are not residents of the state.
Arguments in favour of quota in private
- Avoiding encroachments: Often the privileged castes (or groups) use nefarious arguments to protect their interests.
- Foul argument of merit: Reservations once accepted in the constitutional framework are not a charity that is to be kept away from the ‘meritocracy’ of ‘private’ operations.
- Ensuring equal opportunity: Like all other constitutional guarantees, one may feel the necessity to get ensured of equal opportunity in all spaces.
- Preventing exclusion: Giving preference and quotas for socially and educationally deprived sections in the private space is, therefore, in keeping with this fundamental tenet.
Conclusion
- The politics of identity and polarization on region/religious lines seems inadequate for the elections.
- The philosophy and pragmatism of universal excellence through equality of opportunity for education and advancement across the nation is part of our founding faith and constitutional creed.
- Clearly, this is not the appropriate domain of being “vocal for local”.
- Although some reservations may still be necessary for the socio-political condition in India, reservation on the basis of domicile or residence within a State would be highly discriminatory.
- It is more likely that such politically motivated steps would be overturned by the judiciary as has been done several times in the past.
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From UPSC perspective, the following things are important :
Prelims level: smart city mission
Mains level: urban planning
Context
- Indian urban centres need to plan for migration, climate change. Healthcare, affordable housing, sustainability and inclusion hold the key reimagining them.
What does urban planning mean?
- Urban planning encompasses the preparation of plans for and the regulation and management of towns, cities, and metropolitan regions. It attempts to organize socio-spatial relations across different scales of government and governance.
What are ‘Happy Cities’?
- A term that follows the Green City, Sustainable City, Liveable City, in the lingo of urban planning
- A smart city is one that uses information and communication technologies to enhance citizen engagement. It is a neo-vision which seeks to improve the delivery of services in urban areas. The following story maps out the steps being taken by India to explore this concept in practice.
Fast Facts -Urbanization in India
Most Urbanized States: Tamil Nadu 43.9%; Maharashtra 4%; Gujarat 37.4%.
3 out of world’s 21 mega cities: Mumbai (19 mill); Delhi (15 mill); Kolkata (14 mill)
Global best practices in urban planning
- The Garden City movement: In the West, the Garden City movement (initiated by Ebenezer Howard in 1898) sought to decentralise the working environment in the city centre with a push for providing healthier living spaces for factory workers. The ideal garden city was planned on a concentric pattern with open spaces, public parks and boulevards, housing 32,000 people on 6,000 acres, linked to a central city with over 50,000 people. Once a garden city reached maximum capacity, another city would be developed nearby.
- Neighbourhood concept: In the US, the garden city movement evolved into the neighbourhood concept, where residential houses and streets were organised around a local school or community centre, with a push for lowering traffic and providing safe roads. London has a metropolitan green belt around the city, covering 5,13,860 hectares of land, to offset pollution and congestion and maintain biodiversity. Why can’t Indian cities have something similar, instead of ring roads and urban sprawls?
- La ville du quart d’heure: Paris has taken this forward with the “15-minute city” (‘la ville du quart d’heure’). The idea is rather simple, every Parisian should be able to do their shopping, work, and recreational activities and fulfil their cultural needs within a 15-minute walk or bike ride this means that the number of vehicular trips gets reduced significantly.
- Investment in pedestrian infrastructure and non-motorised transport zones: A city would then be planned for pedestrians, instead of cars and motors. This requires an extensive usage of mixed-use developments, along with investment in pedestrian infrastructure and non-motorised transport zones. Instead of widening highways, this approach would push for widening pedestrian walkways.
What should be adopted for India?
- Every Indian city should ideally have a Master Plan: A strategic urban planning document which would be updated every decade or two. The document would entail how a city is supposed to grow, vertically and horizontally, across zones, while offering a high quality of life in a sustainable manner. Such plans would also consider poverty mitigation, affordable housing and liveability for urban migrants.
- Urban land use needs to be better: One look at satellite map imagery will show that India’s urban growth is increasingly haphazard, with informal, unplanned and sprawling neighbourhoods developing in paddy fields and along linear infrastructure (arterial roads, open spaces). India’s hidden urbanisation, driven partly by our stringent definition of the word, along with weak enforcement of building codes, has meant that the local government is often playing catch-up, unable to provide urban services and infrastructure to keep up with growth.
- Public land availability: Meanwhile, in places where there are formally recognised towns and urban neighbourhoods, outdated planning practices have meant that land utilisation is poor. Consider the case of Mumbai, where almost 1/4th of the land is open public space while over half of it is the underutilised space around buildings, which is enclosed by walls and hived off from public access. Such open spaces, if available, would help cities like Mumbai achieve similar ratios as globally benchmarked cities (Amsterdam, Barcelona) in public land availability (typically above 40 per cent).
- India’s urban density will also need to be thought through: Dense construction on the peripheries of our major cities (for instance, dense construction in Delhi’s suburbs, like Noida and Gurugram) will inevitably mean that public services are stretched and emissions (due to transportation to the main city) remain high. Such urbanisation will unavoidably lock India into a high emissions future while making our cities prone to extreme heat and flooding.
- Then there is climate change: According to the World Bank, climate change may reduce India’s GDP by 3 per cent, while depressing the living standards of its citizens by 2050. Many urban experts cite technological solutions that may save our cities a chain of sea walls, river embankments and reclamations, for instance from such potential calamities. However, structural engineering simply may not be an economically and environmentally feasible option everywhere instead, our focus must be on conservation.
- Climate resilience perspective Bengaluru, with its network of interconnected lakes, could have considered Bangkok-style ferries instead of draining out its lakes. All ongoing and upcoming urban infrastructure projects must be reconsidered from a future climate resilience perspective does the ongoing sea reclamation for the upcoming coastal road in Mumbai make sense if sea levels are rising?
- Establishing a sense of cityhood: By making a push for a city as a co-created space will also require building up institutional capacity.
- Addressing lack of town planning education: India would ideally require 3,00,000 town and country planners by 2031 (there are just 5,000 town planners currently). Much of this problem is fundamentally due to a lack of town planning education in the country there are just 26 institutes that provide this course, producing 700 town planners each year. We already have a shortage of 1.1 million planners. More schools are needed, with a push for local IITs and NITs to have a standalone planning department. With over 8,000 towns and cities, there is a clear unmet need.
Conclusion
- Our policymakers also need to be cognisant of the historical context of our urban development a push for glass buildings or utilising granite may not always be suitable for our cities. Why can’t our cities look distinctly Indian, inspired by our historical architecture? Renewing our cities will require us to rethink various urban topics, including urban design, urban healthcare, affordable housing, sustainability and inclusion among others. Our urban future depends on getting this right.
Mains question
Q. Renewing our cities will require us to rethink various urban topics, including urban design, urban healthcare, affordable housing, sustainability and inclusion among others. Elaborate.
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From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: Sustainable coast management
Context
- It is politically hard, but developmentally critical, to run port development projects with coastal management sustainably.
- A port is a maritime facility comprising one or more wharves or loading areas, where ships load and discharge cargo and passengers. Although usually situated on a sea coast or estuary, ports can also be found far inland, such as Hamburg, Manchester and Duluth; these access the sea via rivers or canals.
What is meant by port management?
- A port management analysis involves an understanding of the port conditions, including intra-port distribution, and routes and hinterland connections outside the port.
Why ports are important?
- Ports infrastructure is key to the development of any nation. India has a coastline spanning about 7,500 km. around 90 percent of India’s external trade by volume and 70 percent by value are handled by ports.
What are concerns with port projects?
- Displacement: Some 350 families that have lost homes to coastal erosion last year, and those living in makeshift schools and camps are just a foretaste of things to come if coastal erosion and extreme cyclones continue unabated.
- Ecological impact: A further danger is an irreversibly destroyed ecology, triggering deadlier hazards of nature. Ports without adequate safeguards in a highly delicate ecology unleash destruction on marine life and the livelihoods of the local population.
- Coastal erosion: Visakhapatnam and Chennai show how siltation, coastal erosion and accretion can be exacerbated by deepening of harbour channels in ecologically sensitive areas.
- Oil spills: During the operation of ports, spillage or leakages from the loading and unloading of cargo and pollution from oil spills are common due to poor adherence to environmental laws and standards.
- Ecosystem threat: The water discharged during the cleaning of a ship and the discharge of ballast water is a threat to marine ecosystems
- Impact on fisheries: Dredging cause’s environmental problems (increased sedimentation) affecting local productivity of the local waters and its fisheries
Value addition example
A just published study shows that during 2006-20, the sea gobbled some 2.62 square kilometres or close to 650 acres from the Thiruvananthapuram coast alone.
Steps to take
- Compensation: The first order of business, as in infrastructure projects worldwide, is that the project provides compensation to the displaced people and restores their rights.
- Reversing marine damage: Second, the gross neglect of the damage to invaluable marine biodiversity must be redressed with an acceptable EIA, including inputs from experts in biology, ecology, and oceanography.
- Safeguard to place: Third, there needs to be an independent assessment of safeguards that port authorities must put in place as a precondition for any further construction.
- Blue Economy:Blue Economy as a concept includes all the economic activities related to oceans, seas, and coastal areas and emerges from a need for integrated conservation and sustainability in the management of the maritime domain.
Way forward
- Master plan: Countries should adopt a National Long-term Mater plan addressing the aspects of smarter, greener, safer sustainable port development and productivity improvement.
- Planning: Port development and investment should be driven by setting specific and realistic goals, such as building a stable infrastructure focused on reducing trade costs and contribute to achieving sustainable transport.
- Cooperation of multiple sectors: In order to establish a comprehensive port development master plan, cooperation with financial, environmental, technical, energy, transportation and urban development authorities is essential and must reflect the needs of users, including shippers and shipping lines.
Conclusion
- To address existing challenges, we should provide research, analysis and technical assistance to help ports and the maritime transport sector especially in developing countries to improve operations and become more sustainable and resilient to crises, including climate change.
Mains question
Q. What do you understand by sustainable port development and port productivity? Discuss the challenges in achieving the same along with way forward.
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From UPSC perspective, the following things are important :
Prelims level: Foreign Trade Policy
Mains level: Read the attached story
The government has extended the launch of new Foreign Trade Policy (FTP) (2022-27) by six more months and would continue with the existing one.
Why such delay in Foreign Trade Policy?
- Geopolitical uncertainty: The geo-political situation is not suitable for long-term foreign trade policy, said Union Commerce Minister.
- Global recession: Currently, fears of a recession in major economies like the US and Europe have escalated a panic among investors.
- Decline in USD inflows: Foreign investors have begun to pull back their money from equities.
- Rupee depreciation: The US Dollar is at a 22-year high, while the Rupee hit a new all-time low of $81.6.
- Huge trade deficit: The trade deficit widened by more than 2-folds to $125.22 billion (April – August 2022) compared to $53.78 billion in the same period last year.
What is a Foreign Trade Policy?
- India’s Foreign Trade Policy (FTP) is a set of guidelines for goods and services imported and exported.
- These are developed by the Directorate General of Foreign Trade (DGFT), the Ministry of Commerce and Industry’s regulating body for the promotion and facilitation of exports and imports.
- FTPs are enforceable under the Foreign Trade Development and Regulation Act 1992.
What is India’s Foreign Trade Policy?
- In line with the ‘Make in India,’ ‘Digital India,’ ‘Skill India,’ ‘Startup India,’ and ‘Ease of Doing Business initiatives, the Foreign Trade Policy (2015-20) was launched on April 1, 2015.
- It provides a framework for increasing exports of goods and services, creating jobs, and increasing value addition in the country.
- The FTP statement outlines the market and product strategy as well as the steps needed to promote trade, expand infrastructure, and improve the entire trade ecosystem.
- It aims to help India respond to external problems while staying on top of fast-changing international trading infrastructure and to make trade a major contributor to the country’s economic growth and development.
Issues with FTP (2015-2020)
- Acting on Washington’s protest, a WTO dispute settlement panel ruled in 2019 that India’s export subsidy measures are in violation of WTO norms and must be repealed.
- Tax incentives under the popular Merchandise Exports from India Scheme (MEIS) (now renamed as RODTEP Scheme)and Service Exports from India Scheme (SEIS) programmes were among them.
- The panel found that because India’s per capita gross national product exceeds $1,000 per year, it may no longer grant subsidies based on export performance.
Way forward
- WTO-compliance: With incentives under MEIS and SEIS in the cloud, WTO-compliant tax benefits are a must.
- Access to credit: Credit availability has long been a need of exporters, particularly MSMEs.
- Infrastructure upgrade: China’s network of ports, motorways, and high-speed trains, which are among the greatest in the world, is one of the reasons it is a manufacturing and export powerhouse.
- Digitization and e-commerce boost: India requires innovative trading procedures as a result of Covid-19 breaking old supply channels.
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From UPSC perspective, the following things are important :
Prelims level: International North–South Transport Corridor (INSTC)
Mains level: Read the attached story
With Pakistan PM listening, Prime Minister Modi urged Shanghai Cooperation Organisation member states to “give each other full right to transit”.
Why in news?
- PM Modi framed the right to transit in the context of connectivity and how it could help establish reliable and resilient supply chains in the region.
Why did PM pitch this?
- Lack of transit across Pakistan’s territory has been a challenge for India to access Central Asian markets.
- Iran’s President also said that despite the impressive potential, infrastructural connections in the field of transit between members of the SCO are not so extensive.
- Iran already provides special priority to the development of the North-South Corridor and has made huge investments.
What is International North-South Transport Corridor (INSTC)?
- The INSTC is a 7,200 km-long multimodal transportation network encompassing sea, road, and rail routes to offer the shortest route of connectivity.
- It was established on 12th September 2000 in St. Petersburg, by Iran, Russia and India for the purpose of promoting transportation cooperation among the Member States.
- It links the Indian Ocean to the Caspian Sea via the Persian Gulf onwards into Russia and Northern Europe.
- It will move freight between India, Iran, Afghanistan, Armenia, Azerbaijan, Russia, Central Asia and Europe.
Significance of INSTC
- Trade facilitation: INSTC is aimed at reducing the carriage cost between India and Russia by about 30 percent and bringing down the transit time by more than half.
- New corridor in making: It has the potential to transform the economies of countries along the corridor into specialized manufacturing, logistics, and transit hubs by facilitating access to newer markets.
- Multimodal transit: The recent Suez Canal blockade, which cost the global economy hefty damage amounting to US$9 billion, has amplified the optimistic outlook towards the INSTC as a cheaper and faster alternative multimodal transit corridor.
Benefits offered to India
- Export promotion: The INSTC connects India with Central Asia, and Russia, and has the potential to expand up to the Baltic, Nordic, and Arctic regions, increasing the scope of trade multifold.
- Ease of trade: For India, it provides a shorter trade route with Iran, Russia, and beyond to Europe, creating scope for increased economic engagement.
- Alternative Route to Central Asia: It opens up a permanent alternative route for India to trade with Afghanistan and Central Asia, given the hurdles in the direct route through Pakistan.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Rotterdam convention, PIC
Mains level: Not Much
International trade of two new hazardous pesticides — Iprodione and Terbufos — has been recommended for “prior informed consent” (PIC) procedure under the Rotterdam convention.
Why in news?
- In India, the use of these chemicals was permitted by the 2015 Anupam Verma committee report. The country is among the largest exporters of Terbufos.
- The chemicals are dangerous for humans and aquatic animals.
Rotterdam Convention
- The Rotterdam Convention is formally known as the Convention on the Prior Informed Consent Procedure for Certain Hazardous Chemicals and Pesticides in International Trade.
- It is a multilateral treaty to promote shared responsibilities in relation to importation of hazardous chemicals.
- The convention promotes open exchange of information and calls on exporters of hazardous chemicals to use proper labelling, include directions on safe handling, and inform purchasers of any known restrictions or bans.
- Signatory nations can decide whether to allow or ban the importation of chemicals listed in the treaty, and exporting countries are obliged to make sure that producers within their jurisdiction comply.
- India is a party to the convention, with 161 other parties.
What is the Prior Informed Consent (PIC) procedure?
- The PIC procedure is a mechanism for formally obtaining and disseminating the decisions of importing parties on their willingness to receive future shipments of hazardous chemicals.
- The PIC procedure is a mechanism for formally obtaining and disseminating the decisions of importing Parties as to whether they wish to receive future shipments of those chemicals listed in the Convention.
- For each of the chemicals listed in Annex III and subject to the PIC procedure a decision guidance document (DGD) is prepared and sent to all Parties.
- All Parties are required to take a decision as to whether or not they will allow future import of each of the chemicals in Annex III of the Convention.
- These decisions are known as import responses.
Which are the new chemicals listed?
- Iprodione, a fungicide used on vines, fruits, trees and vegetables, has been classified as carcinogenic and toxic for reproduction.
- Terbufos is a soil insecticide used commonly on sorghum, maize, beet and potatoes. It has also been found to pose risk to aquatic organisms due to its toxicity.
- Both pesticides, which are used in agriculture, are known for their harmful impacts on human health and the environment.
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A draft on National Tourism Policy 2022
Tourism Potential in India
