PYQ Relevance:
Q) The question of India’s Energy Security constitutes the most important part of India’s economic progress. Analyze India’s energy policy cooperation with West Asian Countries. (UPSC CSE 2017) |
Mentor’s Comment: UPSC mains have always focused on Energy Security (2017), and uneven distribution of mineral oil (2021).
Recently, Prime Minister Narendra Modi met Qatar’s Amir Sheikh Tamim Bin Hamad Al-Thani to strengthen India-Qatar ties into a “strategic partnership” focused on trade, investments, technology, energy, and people-to-people connections. They also discussed key global and regional issues. This is the Amir’s second state visit to India, following his 2015 visit.
Today’s editorial talks about the trade relations between Qatar and India. This content would help in mains answer writing GS Paper 2 in International Relations.
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Let’s learn!
Why in the News?
India and Qatar agreed to strengthen their relationship as a “strategic partnership,” aim to double trade to $28 billion in five years, and attract $10 billion in Qatari investment into India.
What are the trade relations between India and Qatar?
- Strategic Partnership and Trade Goals: India and Qatar have elevated their bilateral relations to a strategic partnership, aiming to double their trade from approximately USD 14 billion to USD 28 billion over the next five years. This agreement was formalized during discussions between the Indian Prime Minister and Qatari Amir Sheikh Tamim Bin Hamad Al-Thani.
- Key Exports and Imports: In the fiscal year 2022-23, India’s exports to Qatar were valued at USD 1.96 billion, while imports from Qatar reached USD 16.8 billion. Major exports from Qatar to India include liquefied natural gas (LNG), liquefied petroleum gas (LPG), and petrochemicals, whereas India exports cereals, textiles, machinery, and precious stones to Qatar.
- Energy Cooperation: Qatar is India’s largest supplier of LNG and LPG, accounting for over 48% of India’s LNG imports and 29% of its LPG imports in FY 2022-23. This energy trade has been a cornerstone of the bilateral relationship, with long-term contracts in place for continued supply.
- Investment Opportunities: Qatari investments in India have surpassed USD 1.5 billion, focusing on sectors such as telecommunications, retail, and infrastructure. Indian companies are also increasingly investing in Qatar, with significant contributions from firms like Larsen & Toubro and Wipro.
- Future Prospects: Both countries are exploring avenues beyond energy, looking to enhance cooperation in technology, manufacturing, and entrepreneurship. The recent discussions included the potential for a Free Trade Agreement (FTA) to further facilitate trade relations.
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Why is Qatar important to India?
- Energy Security: As a major LNG supplier, Qatar plays a crucial role in ensuring India’s energy security, accounting for over 48% of India’s LNG imports. Example: India imports around 8.5 million tonnes of LNG annually from Qatar, covering a significant portion of its energy demand.
- Trade & Investment: Bilateral trade is growing, with plans to double it to $28 billion and explore a Free Trade Agreement (FTA). Example: Qatar Investment Authority (QIA) has invested in Indian companies like Reliance Jio and Adani Green Energy.
- Indian Diaspora & Remittances: Over 800,000 Indians work in Qatar, making them the largest expatriate group.Example: Indian workers send billions in remittances to India annually, supporting the economy and families back home.
- Strategic & Security Cooperation: The new Strategic Partnership Agreement enhances cooperation in defence, intelligence sharing, and counterterrorism. Example: India and Qatar conduct joint naval exercises to ensure maritime security in the Gulf region.
- Geopolitical & Diplomatic Influence: Qatar plays a key role in West Asian diplomacy, including mediation in conflicts like Israel-Palestine and Taliban negotiations. Example: India engages with Qatar on regional issues to maintain stability and secure energy interests.
What are the benefits of recent deals between India and Qatar related to LNG?
- Duration and Volume: The new agreement extends the supply of 7.5 million metric tons per annum (MMTPA) of LNG from Qatar to India for an additional 20 years, from 2028 to 2048. This is an extension of the existing contract that was set to expire in 2028.
- Pricing Structure: The renewed deal is expected to offer LNG at rates lower than current prices, potentially saving India around $6 billion over the life of the contract. The pricing structure will differ from previous terms, eliminating fixed charges and allowing for more flexible pricing based on market conditions.
- Energy Security: This agreement is crucial for India’s energy security, as Qatar currently supplies about 35% of India’s LNG imports. The deal ensures a stable and reliable supply of natural gas, which is essential for various sectors, including power generation, fertilizers, and city gas distribution.
What are the challenges between India and Qatar?
- Legal & Human Rights Issues: Several Indian workers face legal challenges in Qatar, including imprisonment and labor rights concerns. Example: Former Indian Navy officer Commander Purnendu Tiwary remains in Qatari custody, despite the repatriation of seven other detained Indian naval personnel in 2024.
- Geopolitical Differences: India and Qatar have differing views on regional issues like Israel-Palestine and Middle East conflicts. Example: India supports a two-state solution, while Qatar has close ties with Hamas, leading to potential diplomatic frictions.
- Economic Dependence on Energy Imports: India heavily relies on Qatar for LNG imports, making it vulnerable to price fluctuations and supply disruptions. Example: Any geopolitical instability in the Gulf or energy price hikes could impact India’s energy security and trade balance.
Way forward:
- Diversifying Economic Engagement: Reduce dependency on energy trade by expanding cooperation in manufacturing, technology, and digital infrastructure. Example: Strengthening investments in sectors like fintech, healthcare, and logistics through bilateral agreements and joint ventures.
- Enhancing Diplomatic and Security Cooperation: Deepen collaboration in counterterrorism, maritime security, and intelligence sharing to address regional security concerns. Example: Conduct more frequent joint naval exercises and establish structured dialogues on geopolitical issues like the Israel-Palestine conflict.
- Addressing Legal and Labor Concerns: Strengthen diplomatic mechanisms to protect Indian workers’ rights and ensure fair treatment of those facing legal challenges in Qatar. Example: Expand labor agreements, improve grievance redressal mechanisms, and negotiate for faster repatriation of detainees, including Commander Purnendu Tiwary.
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Note4Students
From UPSC perspective, the following things are important :
Mains level: Challenges in the education sector; Demographic dividend;
Why in the News?
Recently, the Ministry of Education released the Unified District Information System for Education Plus (U-DISE+) data for the years 2022-23 and 2023-24.
Could India’s demographic dividend end before it becomes rich and ageing?
- Declining School Enrolment Signals a Shrinking Youth Population: U-DISE+ data (2022-24) shows a 15.5 million drop (6%) in school enrolment since 2018-19, reflecting a demographic shift. This means that fewer young people will enter the workforce in the future.
- Over the past decade, school enrolment in India has dropped by 24.51 million (9.45%), with elementary-level enrolment seeing the sharpest decline of 18.7 million (13.45%). While secondary enrolment fell by 1.43 million (3.75%), senior secondary enrolment increased by 3.63 million (15.46%).
- Shift in Schooling Patterns: Government and aided school enrolments have declined significantly, while private schools saw only a slight rise. The number of schools has also reduced by 79,109 (5.1%) since 2017-18, reflecting a long-term demographic transition rather than a temporary trend.
- Falling Fertility Rate Below Replacement Level: India’s Total Fertility Rate (TFR) dropped to 2.01 in 2022, below the replacement level of 2.1. A declining birth rate leads to an ageing population without sufficient workforce replenishment.
- Aging Population Before Achieving High-Income Status: Japan and China leveraged their demographic dividend before ageing, but India may age before industrializing fully. It leads to a higher dependency ratio and increased pension and healthcare burdens.
- Labor Market and Economic Growth Concerns: China’s workforce peaked in 2011, leading to labour shortages and slower growth. India might face a similar scenario. It led to reduced economic productivity and difficulty sustaining high GDP growth.
- Decline in Number of Schools and Future Workforce Readiness: The number of schools in India declined by 79,109 (5.1%) from 2017-18 to 2023-24, indicating fewer children. Fewer skilled workers, potentially impacting India’s aspirations to become a global manufacturing and service hub.
- Demographic Shift: The school-age population (6-17 years) has decreased by 17.30 million (5.78%) due to lower fertility rates (2.01 in 2022, below the replacement level of 2.10), leading to fewer children in elementary and secondary education.
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What challenges are associated with enrollment?
- Economic Strain Due to a Shrinking Workforce: A declining working-age population may slow economic growth, limiting India’s ability to generate sufficient income to support an aging society. Example: India’s fertility rate dropped to 2.01 in 2022, below the replacement level of 2.1, indicating a future decline in the labor force.
- Educational System Under Pressure: Falling elementary-level enrollment has reduced demand for schools and teachers, potentially affecting education quality. Meanwhile, senior secondary enrollment increased by 3.63 million (15.46%) over the past decade, putting strain on higher education infrastructure. Example: Elementary school enrollment fell by 18.7 million (13.45%) in the last decade, signaling a demographic shift impacting resource allocation.
- Growing Educational and Economic Inequality: Government and aided schools, which serve marginalized communities, saw a sharp enrollment decline of 19.89 million (13.8%) and 4.95 million (16.41%), respectively, while private schools saw a slight increase, widening the education gap. Example: Enrollment in private unaided schools rose by 1.61 million (2.03%), indicating a shift toward private education that is less accessible to low-income groups.
How might this impact society?
- Shrinking Workforce & Economic Slowdown: Fewer young people entering the job market may lead to labor shortages, reducing economic productivity. Example: Japan and South Korea struggle with aging populations, leading to workforce gaps and slower growth.
- Increased Social Inequality: Government school enrollment decline disproportionately affects marginalized communities, widening the education gap. Example: In rural India, fewer children in government schools may limit upward mobility and economic opportunities.
- Strain on Higher Education & Skill Shortages: A decline in secondary-level enrollment can result in fewer skilled workers, affecting industries reliant on educated labor. Example: IT and manufacturing sectors may face talent shortages, impacting India’s competitiveness in global markets.
- Higher Dependency Ratio & Welfare Burden: With an aging population and fewer workers, the burden on healthcare and pension systems will rise. Example: Countries like Italy and Germany face financial stress due to increased elderly care costs.
- Changing Consumer & Housing Markets: Lower youth populations may reduce demand for housing, schooling, and consumer goods, shifting economic dynamics. Example: Fewer school-age children may lead to school closures, teacher unemployment, and real estate downturns in urban centers.
What are the steps taken by the Indian Government?
- National Education Policy (NEP) 2020: Aims to transform the education system by ensuring universal access, equity, and quality learning from early childhood to higher education.
- Targets a 100% Gross Enrolment Ratio (GER) in school education by 2030 and emphasizes vocational training to meet future workforce demands.
- Samagra Shiksha Abhiyan: A centrally sponsored initiative that integrates existing education programs to provide inclusive and equitable education from pre-school to senior secondary levels.
- Focuses on reducing gender and social disparities, enhancing infrastructure, and promoting digital learning.
- Skill India Mission: Aim to train over 400 million people in industry-relevant skills to support economic growth.
- Includes Pradhan Mantri Kaushal Vikas Yojana (PMKVY) for skill training and certification to boost employability.
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Way forward:
- Enhancing Educational Access & Quality: Need to strengthen government school infrastructure, improve teacher training, and expand digital learning to bridge educational disparities and ensure skill readiness.
- Strategic Workforce & Economic Planning: Align skill development programs with future industry needs, promote labor-intensive sectors, and implement policies to balance workforce participation and aging demographics.
Mains PYQ:
Q National Education Policy 2020 isin conformity with the Sustainable Development Goal-4 (2030). It intends to restructure and reorient education system in India. Critically examine the statement.(UPSC IAS/2020)
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Note4Students
From UPSC perspective, the following things are important :
Mains level: Chief election commission;
Why in the News?
Recently, the Supreme Court agreed to give priority to a hearing on February 19 regarding petitions challenging a new law that gives the central government more control over appointing the Chief Election Commissioner (CEC) and Election Commissioners (ECs).
What are the issues related to CEC?
- Challenge to the 2023 Law: The Supreme Court is hearing petitions challenging the validity of the Chief Election Commissioner and Other Election Commissioners Act, 2023. This law is under scrutiny because it excludes the Chief Justice of India (CJI) from the selection panel for Election Commissioners.
- Petitioners argue that the government excluded the CJI from the selection process, making it a “mockery of democracy”. They allege that the appointments of the CEC and EC under the 2023 law disregard a Constitution Bench ruling that mandated the inclusion of the CJI in the selection panel.
- Opposition Dissent: Congress submitted a dissent note, stating that the process of choosing the Election Commissioner and CEC should be free from executive interference and that removing the CJI exacerbates concerns about the integrity of the electoral process.
- Concerns About Neutrality: The current selection committee composition, consisting of the Prime Minister, a Union Cabinet Minister, and the Leader of the Opposition, is viewed by some as being biased towards the ruling party, which could impinge on the Election Commission’s neutrality.
What is the process for the appointment of CEC?
- Article 324 of the Constitution – Empowers the Election Commission of India (ECI) to supervise, direct, and control elections to Parliament, state legislatures, and the offices of the President and Vice-President.
- Tenure & Conditions (Article 324(5)) – The CEC enjoys a fixed tenure and can only be removed in the manner prescribed for a Supreme Court judge (i.e., through impeachment). However, Election Commissioners can be removed based on the CEC’s recommendation.
- Supreme Court Judgments:
- S.S. Dhanoa v. Union of India (1991) – Reaffirmed the security of tenure for Election Commissioners.
- T.N. Seshan v. Union of India (1995) – Strengthened the autonomy of the Election Commission.
- Anoop Baranwal Case (2023) – Laid down a structured appointment process to ensure neutrality, later altered by the 2023 Act.
- Prior to 2023 Law: The Supreme Court had directed that the CECs and Election Commissioners be appointed by the President based on the advice of a Selection Committee comprising the Prime Minister, the Leader of the Opposition in the Lok Sabha/leader of the single largest party in Opposition, and the Chief Justice of India.
- The Chief Election Commissioner and Other Election Commissioners (Appointment, Conditions of Service, and Term of Office) Act, 2023 – Codified the appointment process but replaced the CJI with a Cabinet Minister in the selection process. According to this act, Election Commissioners are selected by a committee consisting of the Prime Minister, a Union Cabinet Minister, and the Leader of the Opposition or the leader of the largest opposition party in the Lok Sabha.
- Recent Appointment: Gyanesh Kumar was recently appointed as the new CEC, and Dr. Vivek Joshi as an Election Commissioner.
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What are the legal and constitutional basis of CEC?
- Section 7(1) of the Act: The petitions specifically challenge the validity of Section 7(1) of the Chief Election Commissioner and Other Election Commissioners Act. This section outlines the selection committee for appointing the CEC and Election Commissioners, which includes the Prime Minister, the Leader of the Opposition, and a Union Cabinet Minister nominated by the Prime Minister.
- The petitions before the Supreme Court question whether Parliament has the authority to nullify or amend a Constitution Bench judgment through legislation
- Article 141 of the Constitution: The Supreme Court will consider whether the 2023 Act circumvents or dilutes the apex court’s authority to pronounce binding decisions under Article 141 of the Constitution.
- Dilution of Supreme Court Judgment: Petitioners argue that the 2023 law dilutes the Supreme Court’s judgment in the Anoop Baranwal case, which aimed to ensure an independent Election Commission free from executive influence.
Way forward:
- Restore Judicial Oversight: Reinstate the Chief Justice of India in the selection panel to uphold judicial independence and maintain the neutrality of the Election Commission.
- Legislative Safeguards: Enact a comprehensive law ensuring a transparent and bipartisan appointment process, reducing executive dominance and reinforcing democratic principles.
Mains PYQ:
Q Discuss the role of the Election Commission of India in the light of the evolution of the Model Code of Conduct. (UPSC IAS/2022)
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Deposit Insurance
Why in the News?
The Centre is actively considering increasing the deposit insurance cover beyond the current ₹5 lakh limit, as confirmed by Financial Services Secretary.
What is Deposit Insurance?
- Deposit Insurance is a financial protection mechanism for depositors if a bank fails or faces restrictions imposed by the RBI.
- It ensures compensation up to a set limit, even if the bank cannot return the money.
- It is provided by Deposit Insurance and Credit Guarantee Corporation (DICGC), a subsidiary of RBI.
- Coverage & Exclusions:
- Covers: Savings accounts, fixed deposits (FDs), recurring deposits (RDs), current accounts (both principal & interest).
- Does NOT cover: Deposits from foreign governments, central/state governments, inter-bank deposits, and primary cooperative societies.
History of Deposit Insurance in India:
- 1962: First in Asia to introduce Deposit Insurance Corporation (DIC), covering ₹1,500 per depositor.
- 1978: Merged with the Credit Guarantee Corporation to form DICGC.
- 1993: Deposit limit raised to ₹1 lakh.
- 2020: After the PMC Bank crisis in Pune, the limit was increased from ₹1 lakh to ₹5 lakh.
- 2021: Law amended to ensure insured payouts within 90 days of a bank facing restrictions.
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About DICGC & Its Functions
- DICGC was established in 1961, a wholly-owned RBI subsidiary under the DICGC Act, 1961.
- It covers all commercial banks, regional rural banks, foreign banks in India, and cooperative banks.
- Banks pay the insurance premium; depositors do not pay any charges.
- It ensures timely compensation within 90 days of a bank’s collapse.
How does Deposit Insurance work?
- DICGC insures deposits up to ₹5 lakh per depositor per bank.
- The ₹5 lakh limit includes both principal and interest amounts.
- If a bank is facing financial distress or RBI-imposed restrictions, depositors are eligible to claim insurance under Section 18A of the DICGC Act, 1961.
- Payout Timeline:
- Within 45 days: The troubled bank must submit a list of depositors to DICGC.
- Within 90 days: DICGC processes and pays depositors up to ₹5 lakh.
- If a bank goes into liquidation, DICGC pays the insured amount within two months of receiving a claim list from the bank’s liquidator.
- When RBI restricts withdrawals from a bank, depositors are eligible to receive their insured deposits.
PYQ:
[2013] Which of the following grants/grant direct credit assistance to rural households? (2013)
- Regional Rural Banks
- National Bank for Agriculture and Rural Development
- Land Development Banks
Select the correct answer using the codes given below:
(a) 1 and 2 only
(b) 2 only
(c) 1 and 3 only
(d) 1, 2 and 3 |
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Soil Health Cards Scheme
Why in the News?
It has been 10 years since the Soil Health Card Scheme was introduced by Prime Minister Shri Narendra Modi on 19th February 2015 at Suratgarh, Rajasthan.
What is the Soil Health Card Scheme?
- The SHC Scheme was launched to analyze soil quality and provide personalized recommendations to farmers for nutrient management and soil fertility improvement.
- The scheme is implemented by the Department of Agriculture & Farmers’ Welfare.
- It has been integrated into Rashtriya Krishi Vikas Yojana (RKVY) since 2022-23 under the Soil Health & Fertility component.
Key Features of the Soil Health Card Scheme:
- SHC evaluates 12 parameters, including:
- Macronutrients: N, P, K, S.
- Micronutrients: Zn, Fe, Cu, Mn, B.
- Physical & Chemical Properties: pH, EC, OC.
- Samples collected twice a year (post-Rabi and Kharif).
- Grid-based sampling: 2.5 ha in irrigated areas, 10 ha in rain-fed areas.
- SHC Portal & Mobile App enable online tracking, GPS-tagged samples, and QR-coded test results.
- Village-Level Soil Testing Labs (VLSTLs): 665 VLSTLs established across 17 states for local soil testing.
- School Soil Health Programme: Implemented in 1020 schools, with 1000 soil testing labs and 125,972 students enrolled.
Successes and Limitations of SHC:
Success:
- Crop Yields & Productivity Increased (8-10%) through optimized fertilizer application.
- Farmers saved up to ₹5,000 per hectare by using balanced fertilizers.
- 665 Village-Level Soil Testing Labs (VLSTLs) established, improving soil testing accessibility.
- Technological integration (SHC Portal & Mobile App) ensures real-time monitoring.
- Encouraged sustainable farming practices, reducing soil degradation and nutrient depletion.
Limitations and Challenges:
- Many farmers are unaware of SHC benefits and continue traditional farming methods.
- Reports often reach farmers too late for implementation.
- Limited soil testing labs and trained staff in remote areas.
- Farmers need training to interpret SHC reports and apply recommendations.
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PYQ:
[2017] Consider the following statements:
The nation-wide ‘Soil Health Card Scheme’ aims at-
1. expanding the cultivable area under irrigation.
2. enabling the banks to assess the quantum of loans to be granted to farmers on the basis of soil quality.
3. checking the overuse of fertilizers in farmlands.
Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 3 only
(c) 2 arid 3 only
(d) 1, 2 and 3 |
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Exercise Dharma Guardian
Why in the News?
India and Japan are set to commence the 6th edition of the Dharma Guardian military exercise at Mount Fuji.
Other India-Japan Military Exercises
- JIMEX (Japan-India Maritime Exercise): Naval cooperation between the Indian Navy and Japan Maritime Self-Defense Force (JMSDF).
- Veer Guardian: Joint air force exercise between the Indian Air Force (IAF) and Japan Air Self-Defense Force (JASDF).
- Malabar Exercise: Japan participates along with India, the US, and Australia (Quad nations) in this high-level naval exercise.
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About Exercise Dharma Guardian
- It is an annual joint military exercise between the Indian Army and Japan Ground Self-Defense Force (JGSDF), conducted alternatively in India and Japan.
- It was commenced in 2018
- The 6th edition will be held from February 25 to March 9, 2025, at Mount Fuji, Japan.
- 120 Indian soldiers from the Madras Regiment will participate, focusing on urban warfare and counter-terrorism operations.
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- Joint Counter-Terrorism Training: Focus on urban and semi-desert warfare.
- Advanced Tactical Drills: Close-quarters combat, live fire, and battlefield medical evacuation.
- 48-hour Validation Exercise: Tests real-time combat coordination.
- Cultural and Professional Exchange: Strengthens India-Japan military ties.
Significance:
- Strengthens Strategic Ties: Expands India-Japan defence cooperation under the Indo-Pacific framework.
- Enhances Regional Security: Aligns with Quad nations’ vision (India, Japan, US, Australia).
- Boosts Defence Technology Collaboration: Includes co-development of Unicorn Stealth Antenna System.
- Improves Military Readiness: Supports joint UN peacekeeping and disaster response operations.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Delhi Earthquake and its causes
Why in the News?
A magnitude 4 earthquake struck New Delhi with epicentre near Dhaula Kuan. The quake was shallow (5 km depth), highlighting Delhi’s seismic vulnerability due to its location in Zone IV of India’s earthquake hazard map.
Possible Causes of the Earthquake
- Tectonic Activity along the Delhi-Hardwar Ridge:
- Delhi sits on the Delhi-Hardwar Ridge, an active seismic fault.
- Continuous collision of the Indian and Eurasian plates builds tectonic stress, leading to earthquakes when stress is released.
- Groundwater Extraction as a Seismic Trigger: Excessive exploitation alters rock pressure, potentially inducing fault movements.
- Anthropogenic (Human-Induced) Activity:
- Urbanization, metro construction, and large-scale infrastructure projects alter subsurface stress.
- Vibrations from construction activities can contribute to localized seismic instability.
About the Aravalli-Delhi Fold Belt
- The Aravalli-Delhi Fold Belt is a major geological formation that extends from southern Rajasthan to Haryana and Delhi.
- It consists of ancient folded rock formations that have undergone millions of years of geological transformation.
- This region has several pre-existing faults, meaning seismic activity can occur without direct tectonic subduction.
- Although historically more active, tectonic movements in the belt have slowed over time.
- These earthquakes occur due to fault reactivation and local stress accumulation rather than large-scale tectonic shifts.
- Himalayan earthquakes are caused by subduction, where the Indian plate moves under the Eurasian plate.
PYQ:
[2021] Discuss about the vulnerability of India to earthquake related hazards. Give examples including the salient features of major disasters caused by earthquakes in different parts of India during the last three decades.
[2015] The frequency of earthquakes appears to have increased in the Indian subcontinent. However, India’s preparedness for mitigating their impact has significant gaps. Discuss various aspects. |
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