Q. In the context of the neo-liberal paradigm of development planning, multi-level planning is expected to make operations cost-effective and remove many implementation blockages.” Discuss. (UPSC IAS/2019)
Q. ‘Whether National Commission for Scheduled Castes (NCSC) can enforce the implementation of constitutional reservation for the Scheduled Castes in the religious minority institutions? Examine.
(UPSC IAS/2018)
Note4Students:
Prelims: Definition of Liberalism;
Mains: Challenges to liberalism;
Mentor comment: Politics, like philosophy, aims to reconcile diversity, where contradictions converge in a multicultural society. Understanding this harmony reflects an idealistic state that prioritizes coexistence and universal welfare. However, global democratic history reveals ongoing challenges to liberalism, which safeguards against authoritarianism and protects civil rights. Amid rising sectarianism, the fundamental question persists: Who deserves basic rights? This issue underscores civil discrimination, racial politics, and xenophobia, exacerbated by the rise of right-wing nationalism and global migration dynamics.
Let’s learn.
–
Why in the News?
There remains a glimmer of hope in the resilience of democratic forces, which can effectively counteract and uproot any divisive political aberration when the time is ripe.
What is Liberalism?
Liberalism is a political and philosophical ideology that emphasizes individual rights, liberty, equality under the law, and limited government intervention in personal and economic affairs. It advocates for freedoms such as freedom of speech, press, religion, and assembly, and supports democratic processes, rule of law, and protection of civil liberties. Liberalism typically promotes social progress through tolerance, pluralism, and a commitment to human rights and justice.
Electoral outcomes
Shift in Public Opinion: There is a noticeable shift towards conservative and right-wing ideologies, marked by sentiments such as climate scepticism, anti-migration views, and nationalism. This trend was reflected in recent elections both in Europe and India.
Voter Response: Despite expectations favouring right-wing outcomes, the electorate, particularly in India, was surprised with a strong rejection of what was perceived as authoritarianism and communalism. This indicates a robust defense of democratic values and fundamental rights.
Impact on Minority Communities: The election results have been seen as a reassurance to minority communities, particularly Muslims, who felt marginalized and insecure due to perceived policies of exclusion and communal tension.
Democratic Fortitude: The outcome is portrayed as a reaffirmation of democracy’s strength in allowing for checks and balances against oppressive regimes and divisive politics.
Hope for Robust Opposition: There is optimism about the emergence of a strong opposition capable of holding the government accountable, promoting debate, and safeguarding diverse civil society interests.
Challenges and Aspirations: The electorate expects rational governance, justice, and responsiveness to marginalized groups’ issues such as poverty, unemployment, and hunger.
Ethical Governance: Emphasis is placed on governance that respects human rights universally, avoiding discrimination or exclusion based on ethnicity, religion, or political affiliation.
Verdict and the Advent of Hope
Challenge to Democracy: The passage highlights a global erosion of democratic values, with right-wing governments accused of manipulating truth and resorting to oppressive tactics to maintain power.
Call for Tempered Liberalism: There’s a plea for ruling dispensations to embrace a more moderate form of liberalism, abandoning illiberal practices that undermine democratic norms and freedoms.
Role of Opposition: Expectations are set on opposition alliances to uphold principles of humility, pluralism, and modesty, providing a counterbalance to dominant political forces.
Philosophical Reflection: The outcome of elections prompts reflection on political astuteness and statesmanship, essential for navigating the trajectory of democracy amidst global challenges.
Natural vs Civil Order: Drawing from Spinoza, the clash between natural self-interest and civil responsibility underscores the necessity of societal order governed by law and morality to prevent chaos and uphold rights.
Hope and Scepticism: The Indian electoral outcome reflects a dual sentiment of hope and scepticism, shaping the future direction of democracy and fostering philosophical introspection.
Challenges to liberalism:
Rise of Right-Wing Sentiment: There is a global trend towards right-wing ideologies, marked by climate scepticism, anti-migration sentiment, and nationalist fervour, posing challenges to liberal values and policies.
Authoritarianism and Communalism: The resurgence of authoritarianism and communal politics threatens democratic principles and societal harmony, particularly impacting marginalized communities like Muslims.
Hope and Despair: The electorate’s response reflects a mix of hope and despair, with optimism placed in a robust opposition and democratic institutions to safeguard fundamental rights and uphold civil society diversity.
Balancing Public and Private: The need for a nuanced approach in reconciling private religious beliefs with public, politicized lifestyles without diminishing individual rights is crucial for fostering a tolerant society.
Way forward:
Policy Reforms: Implement inclusive policies that address economic disparities, social inequalities, and regional disparities effectively. This includes measures to tackle poverty, unemployment, and hunger through targeted welfare programs.
Social Integration: Foster initiatives that promote social cohesion and integration across diverse communities. Encourage dialogue and understanding among different cultural and religious groups to mitigate communal tensions.
Democratic Checks and Balances: Enhance the autonomy and effectiveness of democratic institutions such as the judiciary, election commissions, and anti-corruption bodies. Ensure they operate independently and transparently to uphold democratic principles.
Dialogue and Consensus-Building: Foster inclusive decision-making processes that involve stakeholders from diverse backgrounds. Encourage political parties to engage in constructive dialogue and seek consensus on key policy issues.
From UPSC perspective, the following things are important :
Prelims level: Bordering countries of North Korea
Mains level: Geopolitical Implications on the Indo-Pacific Region
Why in the news?
North Korea has announced that it has successfully tested a new tactical ballistic missile designed to carry a “super-large warhead”.
About the Recent Hwasongpho-11 Da-4.5 Test
North Korea announced the successful test of a new tactical ballistic missile, Hwasongpho-11 Da-4.5, capable of carrying a “super-large warhead.”The test was conducted with a simulated heavy warhead to verify flight stability and accuracy.
The test violates UN prohibitions on North Korea testing ballistic projectiles and is part of their ongoing efforts to advance nuclear capabilities. North Korea’s military plans another launch of the same missile type in July to test the “explosion power” of the super-large warhead.
South Korea’s Reaction
Dismissal as Deception: South Korea’s Joint Chiefs of Staff spokesperson, Colonel Lee Sung-jun, dismissed the test as likely “deception,” questioning the success of the inland test-fire.
Artillery Drills: South Korea’s military conducted artillery drills near the Military Demarcation Line in response.
Military Pact Suspension: These drills resumed following North Korea’s launch of balloons carrying garbage into South Korea, which led to the suspension of a military pact with Pyongyang.
Concerns Over Russia Ties: South Korea is increasingly worried about North Korea’s warming relations with Russia, suspecting North Korea of supplying ballistic missiles and artillery shells to Russia, despite both countries denying these allegations.
Geopolitical Implications on the Indo-Pacific Region
Increased Tensions: North Korea’s missile tests exacerbate tensions in the Indo-Pacific region, raising security concerns among neighbouring countries and global powers.
Regional Arms Race: The tests could prompt an arms race, with countries like South Korea and Japan potentially enhancing their military capabilities in response.
US and Allies’ Response: The United States and its allies in the region may increase military presence and conduct joint exercises to counter North Korea’s missile advancements.
Impact on Diplomacy: The tests complicate diplomatic efforts to denuclearize the Korean Peninsula and might lead to further sanctions and isolation of North Korea.
China’s Role: China’s influence in the region and its relationship with North Korea could be pivotal in addressing the security challenges posed by these missile tests.
Way forward ( What can India do?)
Strengthen Regional Alliances and Diplomatic Engagements: India should enhance its collaboration with key regional players like Japan, South Korea, and ASEAN countries to ensure collective security and stability in the Indo-Pacific region.
Enhance National Defense Capabilities: India should focus on bolstering its own defense infrastructure and capabilities to prepare for any potential threats arising from the increased militarization in the region.
Mains PYQ:
Q The new tri-nation partnership AUKUS is aimed at countering China’s ambitions in the Indo-Pacific region. Is it going to supersede the existing partnerships in the region? Discuss the strength and impact of AUKUS in the present scenario. (UPSC IAS/2021)
From UPSC perspective, the following things are important :
Prelims level: Reason behind the heavy rain
Mains level: Principal Reasons Behind Chronic Urban Flooding in Delhi
Why in the news?
Heavy rain brought Delhi and NCR to a standstill, causing severe water-logging, traffic snarls, power cuts, property damage, and 11 deaths from structural collapses and electrocution.
Climate change and rising temperatures have intensified the overflow of rivers and lakes, snowmelt, storm surges (such as hurricanes and cyclones), and abnormally heavy rains. This, coupled with locational vulnerabilities, has resulted in increased instances of urban flooding.
Principal Reasons Behind Chronic Urban Flooding in Delhi
Unchecked Urban Expansion: Rapid, ill-planned urban growth without considering natural topography and drainage patterns.
Inadequate Drainage Systems: Existing drainage systems are unable to handle high-intensity rainfall, leading to significant runoff.
Concrete Overdevelopment: Excessive construction on low-lying areas and flood plains, leaving little room for water absorption.
Destruction of Water Bodies: Reduction of water bodies that could manage floodwaters, with many converted into real estate.
Neglect of Water in Urban Planning: Lack of a comprehensive water masterplan that integrates water management into urban development.
Present Scenario of Rapid Urbanization in Delhi NCR
Fastest Urban Expansion: Delhi is one of the fastest-growing cities globally, with its geographic size almost doubling between 1991 and 2011.
Population Growth: Predicted to overtake Tokyo as the world’s most populous city by 2030, with an estimated population of 39 million.
Urban Sprawl: Expansion primarily on the peripheries, converting rural areas into urban zones, and rapid urbanization in NCR cities like Ghaziabad, Faridabad, Noida, and Gurugram.
Challenges and Limitations
Topographical Neglect: Building in low-lying areas and on flood plains, disrupting natural drainage and increasing flood risks.
Inadequate Infrastructure: Insufficient desilting of drains, inadequate stormwater management systems, and improper solid waste management.
Lack of a Water Masterplan: Absence of comprehensive planning for clean and wastewater flows, leading to issues like the flooding of new infrastructures like the Pragati Maidan Tunnel.
Reduction of green space and water bodies: Conversion of green spaces and water bodies into concrete developments, further aggravating flood situations.
Inconsistent Urban Planning: No systematic approach to integrating natural water flows and gradients into urban development plans.
Recommendations (Way Forward)
Integrated Urban Planning: Develop a water masterplan that prioritizes water management in urban development.
Protection of Water Bodies: Preserve and restore existing water bodies to manage floodwaters effectively.
Sustainable Development: Implement policies to prevent construction in low-lying and flood-prone areas.
Infrastructure Improvement: Enhance drainage systems, desilting processes, and solid waste management to reduce water logging.
Public Awareness: Increase awareness about the importance of sustainable urban planning and the risks of unchecked urbanization.
Case study: Copenhagen, Denmark has an excellent “Five Finger Plan” that integrates urban infrastructure, transport, and green spaces. The city emphasizes sustainability, public life, and sensitive development. Indian Government can consider this plane.
Mains PYQ:
Q Account for the huge flooding of million cities in India including the smart ones like Hyderabad and Pune. Suggest lasting remedial measures. (UPSC IAS/2020)
From UPSC perspective, the following things are important :
Prelims level: Bordering countries of France
Mains level: How France is India’s steadfast partner in achieving its sustainability goals?
Why in the news?
On July 14, 2023, in Paris, President Emmanuel Macron and Prime Minister Narendra Modi elevated the ‘Partnership for the Planet’ to one of the three central pillars of the Indo-French Horizon 2047 Roadmap.
Indo-French Horizon 2047 Roadmap are:
Strategic Partnership: Enhancing defense, security, and geopolitical ties.
Economic Partnership: Promoting trade, investments, and sustainable development.
Partnership for the Planet: Focusing on environmental sustainability and green technologies.
India- France Bilateral Ties
Strategic Partnership: India and France established a strategic partnership in 1998, which covers cooperation in defense, civil nuclear energy, space, and security. This partnership is considered a cornerstone of their bilateral ties.
High-Level Exchanges: There have been frequent high-level exchanges between the leaders of both countries, including state visits and participation in each other’s national events like the Republic Day parade. This demonstrates the close political ties.
Defense Cooperation: Defense is a major pillar of the India-France partnership. The two countries conduct joint military exercises, collaborate on defense equipment manufacturing, and have an “intelligence and information exchange” mechanism.
Space Cooperation: India and France have robust space cooperation, including co-development and launch of satellites, research on new launch technologies, and connecting startups. They recently launched a Strategic Space Dialogue to guide their space partnership.
Convergence on Indo-Pacific: Both countries share concerns over China’s assertiveness in the Indo-Pacific region. They have agreed to intensify cooperation in the strategically important Southwest Indian Ocean and work with other like-minded countries to address regional security challenges.
How France is India’s steadfast partner to achieve its sustainability goals?
Financial Support: France, through the French Development Agency (AFD) and Proparco, has committed substantial financial resources to India. This includes over €4 billion since 2008 for nearly 100 projects, with a significant focus on climate change mitigation and adaptation.
Strategic Focus Areas: Cooperation spans key sectors like energy transition, sustainable urban development, biodiversity conservation, resilience of territories, and reduction of inequalities. These efforts contribute directly to India’s sustainable development agenda.
Project Implementation: AFD’s involvement in projects such as metro systems in Pune and Nagpur, forest conservation in Rajasthan, and urban water management across 20 cities demonstrates tangible contributions to India’s environmental and social sustainability.
Partnership in Innovation: Collaborative initiatives underpinning innovation, including the Indo-French Year of Innovation in 2026, aimed at fostering solutions that integrate social inclusion with environmental sustainability.
Indo-Pacific Engagement: Strengthening bilateral ties with an Indo-Pacific dimension, focusing on initiatives like the Indo-Pacific Parks Partnership and joint funds for scaling up green technologies, showcasing France’s commitment to regional sustainability efforts.
Private sector-led projects
Investment in Agriculture: Proparco’s €11.2 million investment in Sahyadri, supports farmer-led initiatives to reduce farm losses, pesticide and fertilizer use, and enhance yields and produce quality.
Healthcare Investments: Proparco’s €33 million equity investment in Quadria, aimed at improving access to affordable quality healthcare in underserved regions of India and Southeast Asia.
Innovation and Sustainability: Emphasis on innovative solutions blending social inclusion with sustainability, such as through the Indo-French Year of Innovation in 2026 and joint efforts to scale up green technologies in the Indo-Pacific region.
Way forward:
Strengthen bilateral agreements to facilitate smoother cooperation and ensure compliance with international sustainability standards.
Foster deeper public-private partnerships to leverage expertise, funding, and innovation for sustainable development projects.
Promote continuous high-level dialogues and joint initiatives to address global challenges, enhance regional security, and drive economic growth and environmental sustainability.
Mains PYQ:
Q What were the events that led to the Suez Crisis in 1956? How did it deal a final blow to Britain’s self-image as a world power? (UPSC IAS/2014)
From UPSC perspective, the following things are important :
Prelims level: What is Generative AI?
Mains level: Persistent and Contentious Issues in Internet Governance
Why in the news?
Generative AI’s transformative potential challenges existing legal frameworks and judicial precedents, which are inadequate for effectively governing this rapidly-evolving technology designed for a pre-AI world.
What is Generative AI?
Generative AI refers to artificial intelligence models that can generate original content like text, images, videos, and audio in response to prompts or requests.
These models learn patterns from large datasets and use that knowledge to create new content that resembles the training data.
Persistent and Contentious Issues in Internet Governance
Safe Harbour and Liability Fixation:
The Shreya Singhal judgment upholds Section 79 of the IT Act, granting intermediaries ‘safe harbour’ protection against liability for hosted content, contingent upon meeting due diligence requirements.
Challenges arise in applying these provisions to GAI tools, with debates on whether they should be classified as intermediaries, conduits, or active creators.
The Delhi High Court’s ruling in the Christian Louboutin Sas vs Nakul Bajaj and Ors (2018) case limited safe harbour protection to “passive” intermediaries.
The classification of GAI tools complicates the assignment of liability, especially in cases of user reposts.
Generative AI and Legal Conflicts:
GAI outputs have led to legal conflicts, such as a lawsuit in the U.S. against OpenAI for defamation by ChatGPT.
Ambiguities in classifying GAI tools complicate legal decisions regarding liability.
What Does the Indian Copyright Act 1957 Say?
Section 16 specifies that copyright protection is granted only under the provisions of the Act, with reluctance globally to extend protection to AI-generated works.
Critical questions include whether existing copyright laws should be revised for AI, the need for co-authorship with humans, and the responsibility for copyright infringement by AI tools.
The 161st Parliamentary Standing Committee Report highlights the inadequacy of the Copyright Act to facilitate AI authorship and ownership.
Current Indian law allows copyright owners to take legal action against infringement, but liability for AI-generated content remains unclear.
Steps to Pursue (Way forward)
Learning by Doing: Implement a sandbox approach, granting temporary immunity from liability to GAI platforms for responsible development and data gathering to inform future regulations.
Data Rights and Responsibilities: Overhaul the data acquisition process for GAI training, ensuring legal compliance, proper licensing, and compensation for intellectual property used in training models. Potential solutions include revenue-sharing or licensing agreements with data owners.
Simplify the Licensing: Licensing data for GAI is complex due to the lack of a centralized licensing body for web data. The creation of centralized platforms, similar to stock photo websites, can simplify licensing, streamline access to data, and ensure data integrity against bias and discrimination.
Government and Judicial Approach to maximize the benefits of GAI: A comprehensive re-evaluation of existing digital jurisprudence is needed, requiring a holistic, government-wide approach and judicious interpretations by constitutional courts. The aim is to maximize the benefits of GAI while safeguarding individual rights and protecting against unwelcome harm.
Mains PYQ:
Q The emergence of the Fourth Industrial Revolution (Digital Revolution) hasinitiated e-Governance as an integral part of government”. Discuss. (UPSC IAS/2020)
From UPSC perspective, the following things are important :
Prelims level: What is a middle-mile network?
Mains level: What impedes rural connectivity?
Why in the news?
On June 6, IEEE endorsed a wireless network structure aimed at providing economical broadband access in rural areas, formulated at IIT Bombay.
About the latest Telecom Subscription Data
Urban Tele-density: Urban tele-density in India is 127%, indicating that on average, each urban user has more than one mobile connection.
Rural Tele-density: Rural tele-density is significantly lower at 58%, meaning only about one in two rural residents has a mobile connection.
Urban-Rural Digital Divide: The data highlights a stark contrast between urban and rural areas, with urban areas having much higher mobile connectivity compared to rural regions, reflecting a significant digital divide.
What are access and core networks?
Access Network (AN): The AN consists of base stations that provide wireless connectivity to mobile devices within a limited geographical area. It interfaces directly with mobile devices, facilitating communication and data transfer between devices and the wider network.
Core Network (CN): The CN comprises centralized network equipment that manages and directs data traffic between the access network, other networks (like the Internet), and service providers. It handles tasks such as routing, switching, and managing connectivity across the broader network infrastructure.
What impedes rural connectivity?
Affordability: Lower income levels in rural areas make mobile services relatively expensive, limiting access for many rural residents.
Cost of Infrastructure: Installing and maintaining network infrastructure like fibre optics in remote rural areas is costly and may not be economically viable for service providers.
Low Population Density: Rural areas often have sparse populations spread over large geographic areas, making it less profitable for network operators to invest in infrastructure deployment.
Geographical Barriers: Difficult terrains and remote locations further complicate the installation of base stations and backhaul infrastructure necessary for robust network coverage.
Urban Bias in Technology: Most advancements in cellular networks, such as 5G, prioritize high data rates and low latency suitable for urban environments, neglecting the unique challenges of rural areas.
Limited Research: There has been insufficient research focused on developing cost-effective solutions that can efficiently cover large rural areas with adequate connectivity.
What is the IEEE 2061-2024 standard? (Its working and architecture)
IEEE 2061-2024 aims to establish a standardized wireless network architecture for affordable broadband access in rural areas.
It defines a heterogeneous Access Network (AN) comprising macro base stations (Macro-BS) and Wi-Fi base stations, integrated with a flexible Core Network (CN) bypass capability.
Architecture:
Heterogeneous AN: Includes Macro-BS covering large areas with potentially lower data rates, complemented by Wi-Fi base stations deployed within villages for high-speed connectivity.
CN Bypass: Allows direct Internet access from the AN, bypassing the centralized Core Network for certain communications. This enhances efficiency and reduces latency, catering to stationary users common in rural settings.
Middle-Mile Connectivity: Utilizes multi-hop wireless networks (e.g., satellites, long-range Wi-Fi) to extend connectivity over long distances where optical fibre deployment is impractical or costly.
What is a middle-mile network?
A middle-mile network refers to the infrastructure that connects core network hubs to local access points, spanning intermediate distances. It uses technologies like fibre optics, microwave links, or satellites to transport data between central and regional locations, facilitating efficient connectivity over longer distances without the need for direct local access networks.
Conclude: To bridge the urban-rural digital divide in telecom, measures should focus on affordability through subsidized services, incentivizing infrastructure investment in rural areas, promoting research on rural-specific technologies, and ensuring equitable access to advanced wireless standards like IEEE 2061-2024.
Mains PYQ:
Q Has digital illiteracy, particularly in rural areas, coupled with a lack of Information and Communication Technology (ICT) accessibility hindered socio-economic development? Examine with justification. (UPSC IAS/2021)
Prelims Only | Economics | Mains Paper 3: Effects Of Liberalization On The Economy, Changes In Industrial Policy and their effects on Industrial Growth
Note4Students
From UPSC perspective, the following things are important :
Prelims level: ICEA and its mandate
Why in the News?
The Indian Cellular & Electronics Association (ICEA), representing domestic electronics manufacturers, called for a reduction of import duties in the upcoming Union budget.
ICEA highlighted that the growth of the mobile phone sector now depends on demand in the global market rather than domestic demand, facilitated by supportive policies like the Production Linked Incentive (PLI) scheme.
AboutIndia Cellular and Electronics Association (ICEA)
The ICEA is the apex industry body representing the interests of the mobile and electronics sector in India.
It was established in 2017.
It plays a crucial role in shaping policies and promoting the growth of the industry through advocacy, policy formulation, and strategic initiatives.
Membership:
ICEA comprises leading mobile handset manufacturers, electronics companies, and industry stakeholders.
This includes bothIndian and global companies operating in the electronics sector.
Collaborations:
ICEA works closely with government bodies, regulatory authorities, and other industry associations to align its initiatives with national economic goals.
ICEA’s Key Demands
Reduction of Import Duties: ICEA is calling for a reduction in import duties on manufacturing inputs for electronics, particularly in the mobile phone sector.
Current high tariffs are increasing manufacturing costs in India by 7-7.5% on the bill of materials.
Alignment with Global Standards: The demand includes aligning tariffs with those of countries like China and Vietnam, which have lower tariffs on fewer components.
Improvement of Customs Procedures: ICEA is urging for streamlined customs procedures to prevent delays in the shipment of key components.
Significance of ICEA’s Demands
Reducing import duties enhances competitiveness, boosts exports, stimulates investment and job creation, reduces trade deficit, and fosters long-term growth in India’s electronics and mobile phone manufacturing sectors.
Key Initiatives and Programs by ICEA
Electronics Manufacturing Clusters: ICEA promotes the development of electronics manufacturing clusters to create a robust supply chain and manufacturing base in India.
Skill Development: The association emphasizes the need for skill development in the electronics sector to ensure a skilled workforce capable of supporting industry growth.
R&D and Innovation: ICEA encourages research and development (R&D) and innovation within the sector to maintain competitiveness and technological advancement.
Boost in Mobile Phone Exports from India
ICEA Report: According to ICEA, mobile phone exports from India have doubled to surpass Rs 90,000 crore (about USD 11.12 billion) in FY 2022-23 from Rs 45,000 crore in FY22.
Government Targets: The government has set a target of USD 10 billion worth of mobile phone exports, with an ambitious goal of achieving USD 300 billion worth of electronics manufacturing by 2025-26, of which USD 120 billion is expected from exports.
Major Contributors to Export Growth:
Apple’s Contribution: Apple is estimated to have a 50% share of mobile phone exports from India, contributing USD 5.5 billion (about Rs 45,000 crore).
Samsung’s Contribution: Samsung accounts for approximately 40% of exports, worth Rs 36,000 crore.
Third-Party Exports: Third-party exports contributed around USD 1.1 billion to the total export, comprising phones of various brands made in India.
Future Projections:
Export Contribution: Mobile phones are anticipated to contribute more than USD 50 billion worth of exports by 2025-26.
Overall Contribution: Mobile phone exports now account for 46% of the overall electronic goods exports, according to ICEA.
PYQ:
[2016] Recently, India’s first ‘National Investment and Manufacturing Zone’ was proposed to be set up in:
From UPSC perspective, the following things are important :
Prelims level: FEMA, 1999
Why in the News?
Reserve Bank of India (RBI) has proposed to rationalise regulations governing export and import transactions. The aim is to promote ease of doing business and empower banks to provide more efficient service to their foreign exchange customers.
RBI Proposal and Directions
The RBI issued ‘Regulation of Foreign Trade under Foreign Exchange Management Act (FEMA), 1999 – Draft Regulations and Directions.’
Key propositions include:
Repatriation Timeline: The full export value of goods and services must be realised and repatriated to India within 9 months from the date of shipment for goods and the date of invoice for services.
Caution Listing: Exporters who fail to realise the full value within the specified time may be caution-listed by the authorised dealer.
Caution-Listed Exporters: Caution-listed exporters can undertake exports only against receipt of advance payment in full or an irrecoverable letter of credit, to the satisfaction of the authorised dealer.
Advance Remittance Restrictions: No advance remittance for the import of gold and silver is permitted unless specifically approved by the RBI.
Expected Benefits
Ease of Doing Business: The proposed regulations are intended to promote ease of doing business, especially for small exporters and importers.
Empowerment of Banks: The regulations aim to empower authorised dealer banks to provide quicker and more efficient service to their foreign exchange customers.
About Foreign Exchange Management Act (FEMA), 1999
The FEMA, 1999, regulates foreign exchange and trade in India.
FEMA replaced the older Foreign Exchange Regulation Act (FERA), 1973.
How does FEMA regulate EXIM Transaction?
Regulation under FEMA
Resident Indian Criteria
Defined in Section 2(v) of FEMA;
A person residing in India for more than182 days during the course of the preceding financial year.
Current Account Transactions
Permitted freely for EXIM activities, including trade payments and remittances.
Capital Account Transactions
Regulated by RBI, includes FDI in export-oriented units and overseas investments by Indian entities.
Documentation and Declarations
Exporters and importers must furnish declarations to RBI to ensure compliance and monitor foreign exchange.
Export Declarations
Declare the value of goods/services exported, expected earnings, and timeframe for realization.
Import Declarations
Provide details of goods/services imported, and foreign exchange spent, and ensure payments through authorized channels.
Authorized Dealers
Only RBI-approved dealers (banks/financial institutions) can handle foreign exchange transactions for EXIM.
Import Payment Regulations
Payments must be made through authorized channels within prescribed time limits, complying with DGFT terms.
Foreign Currency Accounts
Entities can maintain foreign currency accounts for efficient handling of foreign exchange for EXIM activities.
Significance of FEMA in Regulating EXIM Transactions
Facilitates Trade: By providing a clear regulatory framework, FEMA facilitates smoother and more efficient EXIM transactions, contributing to the growth of international trade.
Economic Stability: Ensures that foreign exchange earnings and expenditures are monitored and regulated, maintaining economic stability and preventing illegal outflows.
Investor Confidence: A transparent and regulated foreign exchange environment boosts investor confidence, attracting more foreign investment.
Liberalization: Replaces the stringent controls of FERA with a more liberal approach, encouraging businesses to engage in global trade.
PYQ:
[2013] Which of the following constitutes Capital Account?
1. Foreign Loans
2. Foreign Direct Investment
3. Private Remittances
4. Portfolio Investment
Select the correct answer using the codes given below.
A new metal oxide nanocomposite has been developed by The Institute of Advanced Study in Science and Technology (IASST) that can help photocatalytic degradation of organic pollutants like dyes and pharmaceuticals and hence can be used as sustainable technologies for cleaning up the environment.
Understanding Photocatalysis and Metal Oxides
Photocatalysis is a process that uses light to accelerate chemical reactions, particularly useful for degrading harmful substances in water and air.
They facilitate this reaction without being consumed.
When exposed to light, these metal oxides generate electron-hole pairs.
These pairs are highly reactive and can break down pollutants into harmless by-products.
Work Efficiency: The overall efficiency of this process depends on several factors, including the choice of metal oxide, its crystal structure, light intensity, pollutant concentration, pH level, and the amount of catalyst used.
Optimisation: Optimizing these factors is crucial for maximising the degradation rates of pollutants. Adjustments in the type of metal oxide, light parameters, and other conditions can significantly enhance the photocatalytic efficiency.
Breakthrough by IASST: NiTF Composite
The team developed a nanocomposite called NiTF, which stands for Nickel-doped Titanium Dioxide on Fuller’s Earth.
This innovative material combines the photocatalytic properties of titanium dioxide with the adsorption capabilities of Fuller’s earth, a type of natural clay.
What is Fuller Earth?
Fuller’s earth is a term for various clays used as an absorbent, filter, or bleaching agent.
Products labeled fuller’s earth typically consist of palygorskite or bentonite.
Primary modern uses include as absorbents for oil, grease, and animal waste, and as a carrier for pesticides and fertilizers
Testing and Results
The NiTF nanocomposite was tested for its ability to decolorize methylene blue, a common dye.
Methylene blue is a persistent pollutant toxic to aquatic life, harmful to human health, and causes colour pollution in water bodies.
The results were impressive, with the composite achieving a 96.15% decolorization of the dye solution at a pH of 9.0 under visible light within 90 minutes.
Fuller’s earth enhanced the TiO2’s ability to adsorb pollutants, even in the absence of light.
This suggests that the NiTF nanocomposite could be a cost-effective solution for environmental photocatalysis, providing benefits even in low-light conditions.
Potential Applications
Catalysis: The nanocomposite can enhance the efficiency of various chemical reactions.
Energy Storage: It has the potential to improve systems for storing energy.
Sensors: The material can be used to develop highly sensitive detection devices.
Optoelectronics: The nanocomposite can advance technologies that use light for electronic devices.
Biomedical Fields: It can be applied in medical treatments and diagnostics.
Coatings: The material can be used to create protective and functional surfaces.
Renewable Energy: It can facilitate water splitting to produce renewable energy.
PYQ:
[2015] With reference to the use of nanotechnology in the health sector, which of the following statements is/are correct?
Targeted drug delivery is made possible by nanotechnology.
Nanotechnology can largely contribute to gene therapy.
Select the correct answer using the code given below:
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
From UPSC perspective, the following things are important :
Prelims level: Exercise MAITREE
Why in the News?
The Indian Army contingent departed for the 13th edition of the India-Thailand joint military Exercise MAITREE.
About Exercise Maitree
Maitree is an annual bilateral military exercise between the Indian Army and the Royal Thai Army that has been conducted since 2006.
It is conducted alternatively in India and Thailand each year
The latest edition in 2019 took place in Umroi, Meghalaya
The exercise involves company-level joint training in jungle and urban scenarios
Objective: Enhancing combined capabilities in executing joint counter-insurgency and terrorist operations in jungle and urban environments under Chapter VII of the United Nations Charter.
Training Focus:
It focuses on joint planning, tactical drills, physical fitness exercises, and sharing best practices.
Key activities include setting up joint operation centres, intelligence gathering, using drones, securing landing zones, and conducting special heliborne operations.
Significance:
Exercise Maitree is significant as both India and Thailand face security challenges from terrorism, especially in southern Thailand which is prone to attacks.
It is part of the growing defense cooperation between India and Thailand, which signed an MoU on defense cooperation in 2012.
India’s Defence Exercises with SE Asian Neighbours:
India has conducted several joint military exercises with its Southeast Asian neighbors in recent years to strengthen defense cooperation and interoperability:
Exercise Garuda Shakti: This is a bilateral exercise between the Indian and Indonesian Special Forces. The latest iteration was held in November 2022 at the Sangga Buana Training Area in Indonesia.
Exercise Mitra Shakti: This is a joint exercise between the Indian and Sri Lankan armies. The latest edition was conducted in 2022.
Exercise VINBAX: This is a joint military exercise between India and Vietnam. The 2022 edition was the 3rd iteration of this exercise.
IMBEX: This is a joint military exercise between India and Myanmar. The latest edition was held in 2017-18.
EKUVERIN: This is a joint military exercise between the Indian and Maldivian forces. The 11th edition was conducted in 2022.
CORPAT: India conducts Coordinated Patrol (CORPAT) exercises with maritime neighbors like Indonesia, Thailand, and Malaysia to enhance maritime cooperation and security in the region.
AIME 2023: This was the first ASEAN-India Maritime Exercise, held in May 2023 with the participation of navies from India, Brunei, Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam.
PYQ:
[2024] Which of the following statements about ‘Exercise Mitra Shakti-2023’ are correct?
This was a joint military exercise between India and Bangladesh.
It commenced in Aundh (Pune).
Joint response during counter-terrorism operation was a goal of this operation.
