Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 2- Parliamentary procedures
The article deals with the issue of importance of parliamentary procedures and how it has been neglected in the passage of several Bills recently.
2 contexts that explain the crisis Parliament faces
1) Neglecting the procedure
- Three simple procedural matters are the cornerstone of parliamentary practice.
- The first is Question Hour, which was suspended.
- Even in taking that decision, the Speaker did not accede to the demand for a division.
- The second is referring bills to committees.
- It is increasingly the case with important pieces of legislation that they are not being either referred to committees, nor are they being fully debated in Parliament.
- The third and most important is “division.”
- If a member of a House asks for a division of votes, the Speaker needs to grant it.
- The Speaker can refuse under some circumstances, but even then he has to take something like an informal headcount vote before refusing division.
2) Substantive context
- There are three bills relating to agriculture that have occasioned serious protests.
- There are three far-reaching pieces of legislation pertaining to labour reform.
- Each of these bills can be improved and crafted in ways that make them more the object of consensus.
- The bills pertaining to agriculture were debated, ffter the debate, deputy chairperson refusesed a division.
- By allowing a division we would at least record where each member of Parliament stood on a question of monumental importance.
Concerns
- We seem to not want to give flexibility to states when it comes to farmers.
- Flexibility is given to states, in the most unrestrained manner possible, when it comes to the interest of capital against labour.
- It seems that the hurried interests of corporate India take precedence over farmers and labour, rather than a well negotiated social contract between all three.
Why the farmers are concerned
- A lot of the farmers’ legitimate fear is that in a fiscal crunch, MSP will be rolled back or procurement curtailed.
- There is genuine uncertainty over what private procurement will mean.
Way forward
- It is also possible that in the case of the APMC, a more creative solution could have been found for concerns of the states, like an opt-out clause for them.
- In case of amendments to labour laws, there is need to examine whether it fulfils the twin objectives of both protecting workers and being compliance-friendly at the same time.
Conclusion
Some deference to process can build trust because it is a sign of a government that listens. At least on the APMC this was a possibility. Let us hope on labour bills there is more reasoned deliberation. Parliamentary practice will not be able to knit an enduring social contract between labour, capital and farmers if it does not inspire confidence.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Suspension of MPs
Mains level: Parliamentary behavior and decency
Recently eight Rajya Sabha MPs were suspended for unruly behaviour in the House.
Try this PYQ:
Q.Consider the following statements:
- Speaker of the legislative assembly shall vacate his/her office of he/she ceases to be a member of the assembly
- Whenever the legislative assembly is dissolved the speaker shall vacate his/her office immediately
Which of the statements given above is/are correct? (CSP 2018)
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 not 2
What is the reason for suspending an MP?
- The general principle is that it is the role and duty of the Presiding Officer — Speaker of Lok Sabha and Chairman of Rajya Sabha — to maintain order so that the House can function smoothly.
- In order to ensure that proceedings are conducted in the proper manner, the Speaker/Chairman is empowered to force a Member to withdraw from the House.
What are the rules under which the Presiding Officer acts?
- Rule Number 373 of the Rules of Procedure and Conduct of Business provides for the suspension of MPs by the Speaker of the House.
- To deal with more recalcitrant Members, the Speaker make take recourse to Rules 374 and 374A.
- Rule 374 says: The Speaker may, if deems it necessary, name a Member who disregards the authority of the Chair or abuses the rules of the House by persistently and wilfully obstructing the business thereof.
- Rule 374A was incorporated in the Rule Book on December 5, 2001. The intention was to skirt around the necessity of moving and adopting a motion for suspension.
Procedure in Rajya Sabha
It’s largely similar, with one important difference.
- Like the Speaker in Lok Sabha, the Chairman of Rajya Sabha is empowered under Rule Number 255 of its Rule Book to “direct any Member whose conduct is in his opinion grossly disorderly to withdraw immediately” from the House.
- Unlike the Speaker, however, the Rajya Sabha Chairman does not have the power to suspend a Member. The House may, by another motion, terminate the suspension.
- The Chairman may “name a Member who disregards the authority of the Chair or abuses the rules of the Council by persistently and wilfully obstructing” business.
- In such a situation, the House may adopt a motion suspending the Member from the service of the House for a period not exceeding the remainder of the session.
Is suspending an MP a decent practice?
- It is a strong action, but it is not uncommon. In general, a balance has to be struck.
- There can be no question that the enforcement of the supreme authority of the Presiding Officer is essential for smooth conduct of proceedings.
- However, it must be remembered that the job of the Presiding Officer is to run the House, not to lord over it.
Alternatives to suspension
- The solution to unruly behaviour has to be long-term and consistent with democratic values.
- A previous Speaker had ordered that television cameras be focussed on the demonstrating members so that people could see for themselves how their representatives were behaving in the House.
Present situation
- In the present case, however, the Opposition has accused the Chairman of stopping the telecast of the proceedings in Rajya Sabha.
- What cannot be denied is that Speaker’s/Chairman’s actions are often dictated more by expediency and the stand of the party that they belong to, rather than by the Rules and principles.
- So, the ruling party of the day invariably insists on the maintenance of discipline, just as the Opposition insists on its right to protest. And their positions change when their roles flip.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: United Nations, Atlantic Charter
Mains level: Success and failures of United Nations
The United Nations completed 75 years this year. In order to commemorate the historic moment, world leaders have come together, at a one-day high-level meeting of the UN General Assembly.
Try this:
Q.Discuss the various success and failures of the United Nations. (150W)
Birth of United Nations
- The United Nations was born out of the horrors of World War II.
- At the time of its foundation, it was primarily tasked with the goal of maintaining world peace and saving future generations from the evils of war.
A historical backgrounder
- The UN was born out of the ashes of yet another international organisation created with the intention of keeping war away.
- The League of Nations was created in June 1919, after World War I, as part of the Treaty of Versailles.
- However, when the Second World War broke out in 1939, the League closed down and its headquarters in Geneva remained empty throughout the war.
- Consequently, in August 1941, American President Franklin D. Roosevelt and British PM Winston Churchill held a secret meeting aboard naval ships in Placenta Bay, located in the southeast coast of Newfoundland, Canada.
The Atlantic Charter
- The heads of the two countries discussed the possibility of creating a body for international peace effort and a range of issues related to the war.
- Together they issued a statement that came to be called the Atlantic Charter. It was not a treaty, but only an affirmation that paved the way for the creation of the UN.
- It declared the realization of “certain common principles in the national policies of their respective countries on which they based their hopes for a better future for the world.”
The name ‘UN’
- The United States joined the war in December 1941, and for the first time the term ‘United Nations’ was coined by president Roosevelt to identify those countries which were allied against the axis powers.
- On January 1, 1942, representatives of 26 allied nations met in Washington DC to sign the declaration of the United Nations, which basically spelt out the war objectives of the Allied powers.
- Over the next couple of years, several meetings took place among the Allied big four — The USA, the Soviet Union, the UK and China — to decide on the post-war charter that would describe the precise role of the UN.
Coming to existence
- The UN finally came into existence on October 24, 1945, after being ratified by 51 nations, which included five permanent members (France, the Republic of China, the Soviet Union, the UK and the US) and 46 other signatories.
- The first meeting of the General Assembly took place on January 10, 1946.
Its achievements
- While at the time of its formation, the UN consisted of only 51 member states, independence movements and decolonization in the subsequent years led to an expansion of its membership.
- At present, 193 countries are members of the UN.
- It has also expanded its scope to resolve over a large number of global issues such as health, environment, and women empowerment among others.
- Soon after its formation, it passed a resolution to commit to the elimination of nuclear weapons in 1946. In 1948, it created the World Health Organisation (WHO) to deal with communicable diseases like smallpox, malaria, HIV.
- In 1950, the UN created the High Commissioner for Refugees to take care of the millions who had been displaced due to World War II.
- More recently in 2002, the UN established the UN criminal court to try those who have committed war crimes, genocide, and other atrocities.
Various criticisms
- The UN has also met with its share of criticisms. In 1994, for instance, the organisation failed to stop the Rwandan genocide.
- In 2005, UN peacekeeping missions were accused of sexual misconduct in the Republic of Congo, and similar allegations have also come from Cambodia and Haiti.
- In 2011, the UN peacekeeping mission in South Sudan was unsuccessful in eliminating the bloodshed caused in the civil war that broke out in 2013.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: FCRA
Mains level: FCRA
The Centre is set to amend the Foreign Contribution (Regulation) Act and has proposed to make Aadhaar a mandatory identification document for all the office-bearers, directors and other key functionaries of an NGO or an association eligible to receive foreign donations.
What are the news Amendments?
(1) Prohibition to accept foreign contribution:
- Under the Act, certain persons are prohibited to accept any foreign contribution.
- These include election candidates, editor or publisher of a newspaper, judges, government servants, members of any legislature, and political parties, among others.
- The Bill adds public servants (as defined under the Indian Penal Code) to this list.
- Public servants include any person who is in service or pay of the government or remunerated by the government for the performance of any public duty.
(2) Transfer of foreign contribution:
- Under the Act, foreign contribution cannot be transferred to any other person unless such person is also registered to accept foreign contribution (or has obtained prior permission under the Act to obtain foreign contribution).
- The Bill amends this to prohibit the transfer of foreign contribution to any other person. The term ‘person’ under the Act includes an individual, an association, or a registered company.
(3) Aadhaar for registration:
- The Act states that a person may accept foreign contribution if they have: (i) obtained a certificate of registration from central government, or (ii) not registered, but obtained prior permission from the government to accept foreign contribution.
- Any person seeking registration (or renewal of such registration) or prior permission for receiving the foreign contribution must make an application to the central government in the prescribed manner.
- The Bill adds that any person seeking prior permission, registration or renewal of registration must provide the Aadhaar number of all its office bearers, directors or key functionaries, as an identification document.
- In case of a foreigner, they must provide a copy of the passport or the Overseas Citizen of India card for identification.
(4) FCRA account:
- Under the Act, a registered person must accept foreign contribution only in a single branch of a scheduled bank specified by them.
- However, they may open more accounts in other banks for utilization of the contribution.
- The Bill amends this to state that foreign contribution must be received only in an account designated by the bank as “FCRA account” in such branch of the State Bank of India, New Delhi, as notified by the central government.
- No funds other than the foreign contribution should be received or deposited in this account.
(5) Restriction in the utilization of foreign contribution:
- Under the Act, if a person accepting foreign contribution is found guilty of violating any provisions of the Act or the unutilized or unreceived foreign contribution may be utilized or received, only with the prior approval of the central government.
- This amendment Bill also seeks to prohibit the transfer of FCRA funds to other persons or organisations.
- The Bill adds that the government may also restrict usage of unutilized foreign contribution for persons who have been granted prior permission to receive such contribution.
- This may be done if, based on a summary inquiry, and pending any further inquiry, the government believes that such a person has contravened provisions of the Act.
(6) Renewal of license:
- Under the Act, every person who has been given a certificate of registration must renew the certificate within six months of expiration.
- The Bill provides that the government may conduct an inquiry before renewing the certificate to ensure that the person making the application: (i) is not fictitious or benami, (ii) has not been prosecuted or convicted for creating communal tension and (iii) has not been found guilty of diversion or misutilisation of funds, among others conditions.
(7) Reduction in use of foreign contribution for administrative purposes:
- Under the Act, a person who receives foreign contribution must use it only for the purpose for which the contribution is received.
- Further, they must not use more than 50% of the contribution to meeting administrative expenses. The Bill reduces this limit to 20%.
(8) Surrender of certificate:
- The Bill adds a provision allowing the central government to permit a person to surrender their registration certificate.
- The government may do so if, post an inquiry, it is satisfied that such person has not contravened any provisions of the Act, and the management of its foreign contribution (and related assets) has been vested in an authority prescribed by the government.
(9) Suspension of registration:
- Under the Act, the government may suspend the registration of a person for a period not exceeding 180 days.
- The Bill adds that such suspension may be extended up to an additional 180 days.
Significance of the amendment
1.Prevent misuse:
- The annual inflow of foreign contribution has almost doubled between the years 2010 and 2019, but many recipients of foreign contribution have not utilised the same for the purpose for which they were registered or granted prior permission under the FCRA 2010.
- Recently, the Union Home Ministry has suspended licenses of the six (NGOs) who were alleged to have used foreign contributions for religious conversion.
2.Strengthen National security
- Many persons were not adhering to statutory compliances such as submission of annual returns and maintenance of proper accounts.
- Such a situation could have adversely affected the internal security of the country.
3.Transparency and accountability
- The new Bill aims to enhance transparency and accountability in the receipt and utilisation of foreign contributions and facilitating the genuine non-governmental organisations or associations who are working for the welfare of society.
Criticism of the FCRA Bill, 2020
- The legislation may be used to target political opponents and religious minorities.
- Effects NGO Functioning: Due to the 20% cap, many NGOs will shut shop and many people will become jobless.
- Inconsistency: On one hand the government invites foreign funds, but when such funds come for educational and charitable purposes, it is prevented.
- High compliance rate: According to the GoI’s FCRA dashboard, there are 22,447 active FCRA registrations in India today. In 2018-19, 21,915 annual returns were filed – a compliance rate of 97.6%.
- Double standards: PM CARES fund had received exemptions from complying with FCRA provisions when it is headed by Union cabinet ministers and administered by PMO officials.
- Licence-Raj on NGOs: The Bill assumes that all NGOs receiving foreign grants are guilty and thus makes Aadhar of office bearers as mandatory requirement.
- Bureaucratic Discretion: There is a thin line between enforcing transparency and using rules to allow official interference and harassment in the sector. Much of the present bill crosses that line and introduces a questionable degree of micro-management.
Way Forward
- NGOs are helpful in implementing government schemes at the grassroots. They fill the gaps, where the government fails to do their jobs.
- The government must stick to the ancient Indian ethos of Vasudhaiva Kutumbakam as the framework for its global engagement and should not act with vendetta against the NGOs who criticize its working.
- Seamless sharing of ideas and resources across national boundaries is essential to the functioning of a global community, and should not be discouraged unless there is reason to believe the funds are being used to aid illegal activities.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Basel norms
Mains level: Basel norms
The country’s largest lender State Bank of India has raised Rs 7,000 crore by issuing Basel III compliant bonds.
Try this PYQ:
Q.‘Basel III Accord’ or simply ‘Basel III’, often seen in the news, seeks to:
(a) Develop national strategies for the conservation and sustainable use of biological diversity
(b) Improve the banking sector’s ability to deal with financial and economic stress and improve risk management
(c) Reduce greenhouse gas emissions but places a heavier burden on developed countries
(d) Transfer technology from developed countries to poor countries to enable them to replace the use of chlorofluorocarbons in refrigeration with harmless chemicals
What are Basel III compliant Bonds?
- The bonds qualify as tier II capital of the bank, and has a face value of Rs 10 lakh each, bearing a coupon rate of 6.24 per cent per annum payable annually for a tenor of 10 years.
- There is a call option after 5 years and on anniversary thereafter.
- Call option means the issuer of the bonds can call back the bonds before the maturity date by paying back the principal amount to investors.
Back2Basics: What are Basel Norms?
- Basel is a city in Switzerland. It is the headquarters of the Bureau of International Settlement (BIS), which fosters co-operation among central banks with a common goal of financial stability and common standards of banking regulations.
- Basel guidelines refer to broad supervisory standards formulated by this group of central banks – called the Basel Committee on Banking Supervision (BCBS).
- The set of the agreement by the BCBS, which mainly focuses on risks to banks and the financial system is called Basel accord.
- The purpose of the accord is to ensure that financial institutions have enough capital on account to meet obligations and absorb unexpected losses.
- India has accepted Basel accords for the banking system.
Basel I
- In 1988, BCBS introduced a capital measurement system called Basel capital accord, also called as Basel 1.
- It focused almost entirely on credit risk. It defined capital and structure of risk weights for banks.
- The minimum capital requirement was fixed at 8% of risk-weighted assets (RWA).
- RWA means assets with different risk profiles.
- For example, an asset-backed by collateral would carry lesser risks as compared to personal loans, which have no collateral. India adopted Basel 1 guidelines in 1999.
Basel II
- In June ’04, Basel II guidelines were published by BCBS, which were considered to be the refined and reformed versions of Basel I accord.
- The guidelines were based on three parameters, which the committee calls it as pillars:
- Capital Adequacy Requirements: Banks should maintain a minimum capital adequacy requirement of 8% of risk assets.
- Supervisory Review: According to this, banks were needed to develop and use better risk management techniques in monitoring and managing all the three types of risks that a bank faces, viz. credit, market and operational risks.
- Market Discipline: This needs increased disclosure requirements. Banks need to mandatorily disclose their CAR, risk exposure, etc to the central bank. Basel II norms in India and overseas are yet to be fully implemented.
Basel III
- In 2010, Basel III guidelines were released. These guidelines were introduced in response to the financial crisis of 2008.
- A need was felt to further strengthen the system as banks in the developed economies were under-capitalized, over-leveraged and had a greater reliance on short-term funding.
- Also, the quantity and quality of capital under Basel II were deemed insufficient to contain any further risk.
- Basel III norms aim at making most banking activities such as their trading book activities more capital-intensive.
- The guidelines aim to promote a more resilient banking system by focusing on four vital banking parameters viz. capital, leverage, funding and liquidity.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Medicanes
Mains level: Frequent landfalls of tropical cyclones in India
Very recently, a medicane named Ianos made landfall along the coast of Greece and caused heavy rainfall and flooding on the islands of Zakynthos, Kefalonia and Ithaca.
Try this PYQ:
In the South Atlantic and South-Eastern Pacific regions in tropical latitudes, cyclone does not originate. What is the reason?
(a) Sea surface temperatures are low
(b) Inter-Tropical Convergence Zone seldom occurs
(c) Coriolis force is too weak
(d) Absence of land in those regions
What are Medicanes?
- Medicanes are extra-tropical hurricanes observed over the Mediterranean Sea.
- Medicanes occur more in colder waters than tropical cyclones, hurricanes and typhoons.
- Hence, the cores of these storms are also cold, as compared to the warm cores of tropical cyclones.
- Warmer cores tend to carry more moisture (hence rainfall), are bigger in size and have swifter winds.
- The main societal hazard posed by Medicanes is not usually from destructive winds but through life-threatening torrential rains and flash floods.
Why in news?
- This year is a mild La Niña, according to the World Meteorological Organization.
- La Niña is the cooling phase of the El Niño Southern Oscillation (ENSO) cycle in the equatorial Pacific Ocean, as opposed to the warming El Niño phase.
- It is characterized by the unusual cooling of the central and east-central equatorial Pacific Ocean.
- A La Niña produces more rain in the central-eastern part, where most of the Mediterranean cyclones develop.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: O-Smart Scheme
Mains level: India's deep ocean mission
The Union Ministry of Earth Sciences has informed about the progress of O-SMART Scheme.
Do you know?
India’s ambitious Deep Ocean Mission is an umbrella scheme under O-SMART initiative. Bottom of Form
O-SMART Scheme
- The services rendered under the O-SMART will provide economic benefits to a number of user communities in the coastal and ocean sectors, namely, fisheries, offshore industry, coastal states, Defence, Shipping, Ports etc.
- It seeks to address issues relating to SDG-14, which aims to conserve the use of oceans, marine resources for sustainable development.
- It also provides the necessary scientific and technological background required for the implementation of various aspects of Blue Economy.
- The State of Art Early Warning Systems established Scheme will help in effectively dealing with ocean disasters like Tsunami, storm surges.
- The technologies being developed will help in harnessing the vast ocean resources of both living and non-living resources from the seas around India.
- A fleet of research vessels viz., Technology Demonstration vessel SagarNidhi, Oceanographic Research Vessel SagarKanya, Fisheries and Oceanographic Research Vessel SagarSampada and Coastal Research Vessel SagarPurvi have been acquired to provide required research support.
Some of the modified objective
The objectives of O-SMART are:
- To generate and regularly update information on Marine Living Resources and their relationship with the physical environment in the Indian Exclusive Economic Zone (EEZ),
- To periodically monitor levels of seawater pollutants for health assessment of coastal waters of India, to develop shoreline change maps for assessment of coastal erosion due to natural and anthropogenic activities,
- To develop a wide range of state-of-the-art ocean observation systems for the acquisition of real-time data from the seas around India,
- To generate and disseminate a suite of user-oriented ocean information, advisories, warnings, data and data products for the benefit of society,
- To develop high-resolution models for ocean forecast and reanalysis system,
- To develop algorithms for validation of satellite data for coastal research and to monitor changes in the coastal research,
- Acquisition of 2 Coastal Research Vessels (CRVs) as replacement of 2 old CRVs for coastal pollution monitoring, testing of various underwater components and technology demonstration,
- To carry out exploration of Polymetallic Nodules (MPN) from a water depth of 5500 m in the site of 75000 sq.km allotted to India by United Nations in Central Indian Ocean Basin, to carry out investigations of gas hydrates,
- Exploration of polymetallic sulphides near Rodrigues Triple junction in 10000 sq. km of the area allotted to India in International waters by International Seabed Authority/UN and,
- Submission of India’s claim over continental shelf extending beyond the Exclusive Economic Zone supported by scientific data, and Topographic survey of EEZ of India.
Also read:
Explained: India’s Deep Ocean Mission
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Atmanirbhar Bharat Mission
Mains level: Paper 3- Atmanirbhar Bharat Abhiyan and challenges
Atmanirbhar Bharat Abhiyan, well considered plan by the Central government seeks to transform the Indian economy. The article analyses its potential and suggests the ways to achieve the aims.
Vocal for local
- Prime Minister Narendra Modi gave a call to fellow Indians to be “Vocal for Local” in May.
- This includes not only to buy and use local products but to also take pride in promoting them.
Challenges
1) Imports from China
- Serious challenge to Atmanirbhar mission is country’s $65 billion worth of imports from China alone.
- Most of these imports are of essential items — raw materials, components and intermediates required in producing finished goods.
- For example, the pharmaceuticals sector imports nearly 70 per cent of its raw material and drug intermediates.
- It may not be feasible to replace all Chinese imports in the near future.
- It may also be debatable if the end goal is to replace the entire chain of imports from a country.
- Nevertheless, experts and industrialists do assert that the ANBA is an excellent initiative and gives India the opportunity to embark on the self-reliance drive.
2) Struggling MSMEs
- A major part of the Vocal for Local mission rests on the MSMEs, which has been seen as struggling for survival.
- But the reforms announced as part of the ANBA should put them on a stronger footing.
- One immediate fallout of these measures will be creation of large scale employment opportunities for both the skilled and unskilled workforce.
- A stronger manufacturing base will also lead to positive spinoffs related to the supply-purchase of local raw material and capacity building of allied manufacturing units.
Way forward
- First, an umbrella action plan should be drawn by the Niti Aayog listing all targets under the ANBA and the Vocal for Local Mission.
- A monitoring agency will review and suggest course correction to ensure that no delay is allowed to build.
- Second, each state/UT will develop an action plan in consonance with the umbrella plan.
- A separate organisation created by each state will be responsible for the implementation of the action plan
- Such organisation should also conduct regular studies to identify local and global market trends and invite competitive solutions to meet market demands.
- Third, each district (or a group of districts) will work out a more detailed action plan, and charter of responsibilities for ground level officers and departments.
Conclusion
The ANBA is a mission to empower the people of India. It will in all likelihood become a benchmark of how governments and their various organisations can work in a mission mode.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 3- Issues with the agriculture bill
The article analyses the issue of farmers opposition to the three agricultural bills.
Context
- Farmers have been protesting against the three bills related to agriculture.
- These three Bills are-
- 1) The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020
- 2) The Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Bill, 2020.
- 3) The Essential Commodities (Amendment) Bill, 2020.
What are the aims of the bills?
- The Bills aim to do away with government interference in agricultural trade by creating trading areas outside the structure of Agricultural Produce Market Committees (APMCs).
- One of the bills aims at removing restrictions of private stockholding (under Essential Commodities Act 1955) of agricultural produce.
- One of the bills deals with the regulation of contract farming.
Issues with the Bills
- The government has failed to hold any discussion with the various stakeholders including farmers and middlemen.
- The attempt to pass the Bills without proper consultation adds to the mistrust among various stakeholders including State governments.
- Farmer organisations see these Bills as an attempt to weaken the APMCs and eventual withdrawal of the Minimum Support Prices (MSP).
- Farmers in Punjab and Haryana have genuine concern about the continuance of the MSP-based public procurement given the large-scale procurement operations in these States.
Understanding the role of APMC
- APMCs do play an important role of price discovery essential for agricultural trade and production choices.
- The middlemen are a part of the larger ecosystem of agricultural trade, with deep links between farmers and traders.
- The preference for corporate interests at the cost of farmers’ interests and a lack of regulation in these non-APMC mandis are cause for concern.
- To understand the role of APMC, consider the example of Bihar.
- After Bihar abolished APMCs in 2006, farmers in Bihar on average received lower prices compared to the MSP for most crops.
- Despite the shortcomings and regional variations, farmers still see the APMC mandis as essential to ensuring the survival of MSP regime.
Conclusion
The protests by farmers are essentially a reflection of the mistrust between farmers and the stated objective of these reforms.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Parliamentary committees and its types
Mains level: Parliamentary committees and thier various functions
The government pushed through two crucial agriculture Bills in Rajya Sabha, rejecting Opposition demands to refer them to a Select Committee of Rajya Sabha.
Try this PYQ:
With reference to the Parliament of India which of the following Parliamentary Committees scrutinizes and reports to the House whether the powers to make regulations, rules, sub-rules, bylaws, etc. conferred by the Constitution or delegated by the Parliament are being properly exercised by the Executive within the scope of such delegation?(CSP 2018)
(a) Committee on Government Assurances
(b) Committee on Subordinate Legislation
(c) Rules Committee
(d) Business Advisory Committee
What is a Parliamentary Committee?
- It means a Committee which is appointed or elected by the House or nominated by the Speaker and which works under the direction of the Speaker and presents its report to the House or to the Speaker and the Secretariat for which is provided by the Lok Sabha Secretariat.
By their nature, Parliamentary Committees are of two kinds: Standing Committees and Ad hoc Committees.
- Standing Committees are permanent and regular committees which are constituted from time to time in pursuance of the provisions of an Act of Parliament or Rules of Procedure and Conduct of Business in Lok Sabha. The work of these Committees is of continuous nature. The Financial Committees, DRSCs and some other Committees come under the category of Standing Committees.
- Ad hoc Committees are appointed for a specific purpose and they cease to exist when they finish the task assigned to them and submit a report. The principal Ad hoc Committees are the Select and Joint Committees on Bills. Railway Convention Committee, Joint Committee on Food Management in Parliament House Complex etc also come under the category of ad hoc Committees.
Why need Parliamentary Committee?
- Parliament scrutinizes legislative proposals (Bills) in two ways. The first is by discussing it on the floor of the two Houses.
- This is a legislative requirement; all Bills have to be taken up for debate.
- The time spent debating the bills can vary. They can be passed in a matter of minutes, or debate and voting on them can run late into the night.
- Since Parliament meets for 70 to 80 days in a year, there is not enough time to discuss every Bill in detail on the floor of the House.
Its role in the passage of a Bill
- The debate in the house is mostly political and does not go into the technical details of a legislative proposal.
- The second mechanism is by referring a Bill to a parliamentary committee. It takes care of the legislative infirmity of debate on the floor of the House.
- However, referring to Bills to parliamentary committees is not mandatory.
And what is a Select Committee?
- India’s Parliament has multiple types of committees.
- They can be differentiated on the basis of their work, their membership and the length of their tenure. First are committees that examine bills, budgets and policies of ministries.
- These are called departmentally related Standing Committees. There are 24 such committees and between them, they focus on the working of different ministries.
- Each committee has 31 MPs, 21 from Lok Sabha and 10 from Rajya Sabha.
- The main purpose is to ensure the accountability of Government to Parliament through a more detailed consideration of measures in these committees.
- The purpose is not to weaken or criticize the administration but to strengthen by investing in with more meaningful parliamentary support.
When does a committee examine a Bill?
- Bills are not automatically sent to committees for examination. There are three broad paths by which a Bill can reach a committee.
- The first is when the minister piloting the Bill recommends to the House that his Bill be examined by a Select Committee of the House or a joint committee of both Houses.
- Last year Electronics and IT Minister moved a motion in Lok Sabha referring the Personal Data Protection Bill to a Joint Committee.
- If the minister makes no such motion, it is up to the presiding officer of the House to decide whether to send a Bill to a departmentally related Standing Committee.
What happens when a bill goes to a Committee?
- Sending a Bill to any committee results in two things.
- First, the committee undertakes a detailed examination of the Bill. It invites comments and suggestions from experts, stakeholders and citizens.
- The government also appears before the committee to present its viewpoint.
- All this results in a report that makes suggestions for strengthening the Bill. While the committee is deliberating on a Bill, there is a pause in its legislative journey.
- It can only progress in Parliament after the committee has submitted its report. Usually, parliamentary committees are supposed to submit their reports in three months, but sometimes it can take longer.
What happens after the report?
- The report of the committee is of a recommendatory nature. The government can choose to accept or reject its recommendations.
- Very often the government incorporates suggestions made by committees. Select Committees and JPCs have an added advantage.
- In their report, they can also include their version of the Bill. If they do so, the minister in charge of that particular Bill can move for the committee’s version of the Bill to be discussed and passed in the House.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not Much
Mains level: Labour reforms
The government has introduced new versions of three labour codes – Industrial Relations Code Bill, 2020, Code on Social Security Bill, 2020 and Occupational Safety, Health and Working Conditions Code Bill, 2020.
Try this PYQ:
Q.Disguised unemployment generally means:
(a) A large number of people remain unemployed
(b) Alternative employment is not available
(c) Marginal productivity of labour is zero
(d) Productivity of workers is low
What are the key proposals?
(1) Industrial Relations Code Bill, 2020
- In this, the government has proposed to introduce more conditions restricting the rights of workers to strike, alongside an increase in the threshold relating to layoffs and retrenchment.
- The Code has raised the threshold for the requirement of a standing order — rules of conduct for workmen employed in industrial establishments — to over 300 workers.
- This implies industrial establishments with up to 300 workers will not be required to furnish a standing order, a move which experts say would enable companies to introduce arbitrary service conditions for workers.
- These steps are likely to provide more flexibility to employers for hiring and firing workers without government permission.
(2) Social Security Code
- It proposes a National Social Security Board which shall recommend to the central government for formulating suitable schemes for different sections of unorganised workers, gig workers and platform workers.
- Also, aggregators employing gig workers will have to contribute 1-2 per cent of their annual turnover for social security, with the total contribution not exceeding 5 per.
(3) Occupational Safety, Health and Working Conditions Code
- This code has defined inter-state migrant workers as the worker who has come on his own from one state and obtained employment in another state, earning up to Rs 18,000 a month.
- The proposed definition makes a distinction from the present definition of only contractual employment.
- The Code, however, has dropped the earlier provision for temporary accommodation for workers near the worksites.
- It has though proposed a journey allowance — a lump sum amount of fare to be paid by the employer for to and fro journey of the worker to his/her native place from the place of his/her employment.
What are the other proposals for workers?
- The IR Code Bill has also proposed a worker re-skilling fund.
- The contributions for the fund are only detailed from the employer of an industrial establishment amounting to fifteen days wages last drawn by the worker immediately before the retrenchment along with the contribution from such other sources.
- The mention of ‘other sources’ for funding the re-skilling fund is vague.
What are the concerns raised over the new labour codes?
- Analysts say the increase in the threshold for standing orders will water down the labour rights for workers in small establishments having less than 300 workers.
- The increase is uncalled for and shows the government is very keen to give tremendous amounts of flexibility to the employers in terms of hiring and firing.
- Dismissal for alleged misconduct and retrenchment for economic reasons will be completely possible for all the industrial establishments employing less than 300 workers.
- The Industrial Relations Code also introduces new conditions for carrying out a legal strike.
- The time period for arbitration proceedings has been included in the conditions for workers before going on a legal strike as against only the time for conciliation at present.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Brucellosis
Mains level: NA
As the novel coronavirus pandemic continues, the health commission has announced this week that a leak in a biopharmaceutical company last year caused an outbreak of brucellosis disease.
Try this PYQ:
Q.Consider the following kinds of organisms:
- Bacteria
- Fungi
- Flowering plants
Some species of which of the above kinds of organisms are employed as bio-pesticides?
(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
What is Brucellosis?
- Brucellosis is a bacterial disease that mainly infects cattle, swine, goats, sheep and dogs.
- Humans can get infected if they come in direct contact with infected animals or by eating or drinking contaminated animal products or by inhaling airborne agents.
- According to the WHO, most cases of the disease are caused by ingesting unpasteurized milk or cheese from infected goats or sheep.
- Symptoms of the disease include fever, sweats, malaise, anorexia, and headache and muscle pain.
- While some signs and symptoms can last for long periods of time, others may never go away. Human to human transmission of the virus is rare.
- These include recurrent fevers, arthritis, swelling of the testicles and scrotum area, swelling of the heart, neurologic symptoms, chronic fatigue, depression and swelling of the liver or spleen.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: e-Gram SWARAJ
Mains level: E-governance of PRIs
A unified tool e-Gram SWARAJ portal has been developed by the Ministry of Panchayati Raj for effective monitoring and evaluation of works taken up in the Gram Panchayats.
e-Gram SWARAJ
- It unifies the planning, accounting and monitoring functions of Gram Panchayats.
- Its combination with the Area Profiler application, Local Government Directory (LGD) and the Public Financial Management System (PFMS) renders easier reporting and tracking of Gram Panchayat’s activities.
- It provides a single-window for capturing Panchayat information with the complete Profile of the Panchayat, details of Panchayat finances, asset details, activities taken up through Gram Panchayat Development Plan (GPDP) etc.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: SPICe+ Portal
Mains level: Not Much
The Ministry of Corporate Affairs has notified and deployed a web-form namely ‘SPICe+’ as a part of Govt of India’s Ease of Doing Business (EODB) initiatives.
Try this MCQ:
Q.The SPICe+ Portal sometimes seen in news is related to which of the following Ministry?
(a) Ministry of Environment, Forest and Climate Change
(b) Ministry of Commerce and Industry
(c) Ministry of Corporate Affairs
(d) Ministry of Agriculture & Farmers’ Welfare
SPICe+ Portal
- It offers 10 services by three Central Government Ministries and Departments (Ministry of Corporate Affairs, Ministry of Labour & Department of Revenue in the Ministry of Finance), one State Government (Maharashtra) and various Banks.
- Thus it saves the procedure, time and cost for Starting a Business in India.
- These 10 services are:-
- Name reservation
- Incorporation
- DIN allotment
- Mandatory issue of PAN
- Mandatory issue of TAN
- Mandatory issue of EPFO registration
- Mandatory issue of ESIC registration
- Mandatory issue of Profession Tax registration (Maharashtra)
- Mandatory Opening of Bank Account for the Company and
- Allotment of GSTIN (if so applied for)
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Various labour laws
Mains level: Labour reforms in India
This session of Lok Sabha has passed 3 Historic and path-breaking Labour Codes.
UPSC may ask the major laws subsumed under these Labour Codes.
What are the 3 bills?
The 3 bills which were passed are
- Industrial Relations Code, 2020
- Code on Occupational Safety, Health & Working Conditions Code, 2020 &
- Social Security Code, 2020
All the labour laws (29 in number) being amalgamated into 4 labour codes are :
Name of the Code
|
Amalgamated laws
|
| Wage Code
|
4 laws –
- The Payment of Wages Act, 1936
- The Minimum Wages Act, 1948
- The Payment of Bonus Act, 1965
- The Equal Remuneration Act, 1976
|
| IR Code
|
3 laws –
- The Trade Unions Act, 1926
- The Industrial Employment (Standing orders) Act, 1946
- The Industrial Disputes Act, 1947
|
| OSH Code
|
13 laws –
- The Factories Act, 1948
- The Plantations Labour Act, 1951
- The Mines Act, 1952
- The Working Journalists and other Newspaper Employees (Conditions of Service) and Miscellaneous Provisions Act, 1955
- The Working Journalists (Fixation of Rates of Wages) Act, 1958
- The Motor Transport Workers Act, 1961
- The Beedi and Cigar Workers (Conditions of Employment) Act, 1966
- The Contract Labour (Regulation and Abolition) Act, 1970
- The Sales Promotion Employees (Conditions of Service) Act, 1976
- The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979
- The Cine-Workers and Cinema Theatre Workers (Regulation of Employment) Act, 1981
- The Dock Workers (Safety, Health and Welfare) Act, 1986
- The Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996
|
| Social Security Code
|
9 laws –
- The Employees’ Compensation Act, 1923
- The Employees’ State Insurance Act, 1948
- The Employees Provident Fund and Miscellaneous Provisions Act, 1952
- The Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959
- The Maternity Benefit Act, 1961
- The Payment of Gratuity Act, 1972
- The Cine Workers Welfare Fund Act, 1981
- The Building and Other Construction Workers Welfare Cess Act, 1996
- The Unorganised Workers’ Social Security Act, 2008
|
Here are the key features of these bills:
(A) Social Security Code, 2020
- The facility of ESIC would now be provided in all 740 districts. At present, this facility is being given in 566 districts only.
- EPFO’s coverage would be applicable on all establishments having 20 workers. At present, it was applicable only on establishments included in the Schedule.
- Provision has been made to formulate various schemes for providing comprehensive social security to workers in the unorganised sector.
- A “Social Security Fund” will be created on the financial side in order to implement these schemes.
- Work to bring newer forms of employment created with the changing technology like “platform worker or gig worker” into the ambit of social security has been done in the Social Security Code.
- Provision for Gratuity has been made for Fixed Term Employee and there would not be any condition for minimum service period for this.
- With the aim of making a national database for unorganised sector workers, registration of all these workers would be done on an online portal and this registration would be done on the basis of Self Certification through a simple procedure.
(B) Occupational Safety, Health & Working Conditions Code, 2020
- Free health checkup once a year by the employer for workers which are more than a certain age.
- A legal right for getting Appointment Letter given to workers for the first time.
- Cine Workers have been designated as Audio Visual Worker so that more and more workers get covered under the OSH code. Earlier, this security was being given to artists working in films only.
(C) Industrial Relations Code, 2020
Efforts made by the Government for quickly resolving disputes of the workers include:
- Compulsory facility for Helpline for redressal of problems of migrant workers.
- Making a national database of migrant workers.
- Provision for the accumulation of one day leave for every 20 days worked when work has been done for 180 days instead of 240 days.
- Equality for women in every sphere: Women have to be permitted to work in every sector at night, but it has to be ensured that provision for their security is made by the employer and consent of women is taken before they work at night.
- In the event of the death of a worker or injury to a worker due to an accident at his workplace, atleast 50 % share of the penalty would be given. This amount would be in addition to Employees Compensation.
- Provision of “Social Security Fund” for 40 Crore unorganized workers alongwith GIG and platform workers and will help Universal Social Security coverage
- Occupational Safety & Health Code to also can now over cover workers from IT and Service Sector.
- 14 days notice for Strike so that in this period amicable solution comes out.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 2- Free speech vs hate speech
Context
- Sudarshan TV case will have several implication for the regulation of free speech.
- In principle, Indian law allows prior restraint on broadcasting. This prior restraint should be used sparingly and must meet a high constitutional bar.
- Indian law also allows regulation for hate speech.
Maintaining the equilibrium
- The government feared that if it did not have the power to regulate speech, it will threaten the stability of society.
- The hate and violence got the state to betray its own liberal commitments
- Liberals never acquired the confidence of people to let go of state regulation in the name of defending the republic.
- The spread of hate speech and its political consequences are now infinitely greater.
- The situation, where communication mediums are used to target communities, are not outside the realm of possibility.
- It is for this reason we still have so many restraints on speech.
Challenges in regulation of speech
- Almost every regulation of speech, no matter how well intentioned, increases the power of the state.
- But now, in the current context, empowering the state is a frightening prospect as well.
- The issue is fundamentally political and we should not pretend that fine legal distinctions will solve the issue.
- An over-reliance on legal instruments to solve fundamentally social and political problems often backfires.
3 lessons to learn
- 1) The more the state regulates, the more it politicises the regulation of speech, and ultimately legitimate dissent will be the victim.
- 2) There is a whole bunch of laws and regulation already on the books for regulation, these have been ineffective because of institutional dysfunction.
- 3) Social media operates on a set of monetising incentives. But broadcast media is also based on political economy.
- The granting of licences has always been a political affair; the pricing structures set by the TRAI have perverse consequences for quality and competition.
- Our current media landscape is neither a market nor a state. The more the underlying political economy of media is broken, the less likely it is that free speech will stand a chance.
Way forward
- Not post facto content regulation, but a market structure that can help provide more checks and balances.
- Not let bad media drive out good.
- The Court suo motu setting up a regulatory framework does not inspire confidence. It is not its jurisdiction to begin with.
- This is something for Parliament to think about.
Conclusion
The government must walk the tight rope of regulation and safeguarding the rights of all.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: GST Council, GST compensation etc.
Mains level: Paper 3- GST compensation issue
The article deal with the issue of GST compensation and analyses the various estimates of revenue shortfall given by the Centre.
Context
- The Goods and Services Tax (GST) Council meeting has now been deferred to the first week of October due to sharp disagreement between the States and the Centre.
Background of GST
- The Centre had brought the States on board GST by promising higher revenue collection.
- States were lured by the promise of 14% annual growth in GST revenue over the base year of 2015-16.
- Any shortfall from this (for five years) was to be compensated by levying a cess on luxury and sin goods.
What are the options given by the Centre
- The transfers due since April 2020 have been withheld.
- In the last GST Council meeting held on August 27, the Centre gave the States two options.
- First, they could borrow ₹97,000 crore (the shortfall in the GST revenue compensation) from the Reserve Bank of India (RBI) under a special window at a low rate of interest.
- Second, borrow ₹2.35-lakh crore (the total compensation shortfall) from the market with the RBI facilitating it.
- The burden of repayment would be borne by the future collections from the compensation cess.
- It was proposed that this cess which was to end in June 2022 could be extended to facilitate the repayment of the debt.
Issues with the estimates
- Given the uncertainty, how accuracy of the estimates of ₹97,000 crore and ₹2.35-lakh crore offered to the States is questionable.
- When the Ministry of Finance is refusing to give a figure for growth in 2020-21, how such estimates are arrived at gains significance.
Budgetary calculations
- The Union Budget presented on February 1, 2020 assumed a nominal growth of 10%.
- But optimistically, the Centre’s budgetary calculations will be off by at least 20%.
- Revenue will fall by much more than 20%.
- So, income tax collection will also be short by much more than 20%.
- The direct tax/GDP per cent may be expected to fall from 5.5% last year to less than 4% this fiscal.
- Thus, at an optimistic guess, if the economy declines by only 10%, the total tax collection will be down by about ₹12-lakh crore in 2020-21.
Conclusion
As many predictions are that the economy will be down by much more than 10% used in the calculations above, the revenue shortfall is likely to be far greater. This points to the dire position of the Centre (and the States) and the inevitability of a large borrowing programme. Only the Centre is in a position to do such massive borrowing.
Back2Basics: Two options for the GST compensation
- Option 1 has a special window for states, coordinated by the Finance Ministry, to borrow the projected shortfall of Rs 97,000 crore only on account of GST implementation — and not the Covid-19 pandemic.
- This amount can be fully repaid from the compensation cess fund, without being counted as states’ debt.
- Option 2 takes into account the impact of the pandemic, proposing states to borrow the entire Rs 2.35 lakh crore and bearing the interest burden though principal will be repaid from the cess proceeds.
- The GST shortfall amount (Rs 97,000 crore) will not be counted as states’ debt, while the rest of the amount of Rs 1.38 lakh crore will be counted in the books of the states.
Source:
https://indianexpress.com/article/business/economy/gst-compensation-centre-gives-states-2-options-easier-terms-for-lower-borrowing-6575499/
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 2- Afghan peace process and India's role
The U.S. objectives
- Following 4 were the states as objectives of the Afghan peace process.
- 1) An end to violence by declaring a ceasefire.
- 2) An intra-Afghan dialogue for a lasting peace.
- 3) The Taliban cutting ties with terrorist organisations such as al Qaeda.
- 4) U.S. troop withdrawal.
Evolving Indian stand in the peace process
- India’s vision of a sovereign, united, stable, plural and democratic Afghanistan is one that is shared by a large constituency in Afghanistan, cutting across ethnic and provincial lines.
- At Doha meeting, India’s External Affairs Ministerreiterated that the peace process must be “Afghan led, Afghan owned and Afghan controlled”.
- But Indian policy has evolved from its earlier hands-off approach to the Taliban.
- U.S. and Russian representatives suggested if India had concerns regarding anti-India activities of terrorist groups, it must engage directly with the Taliban. In other words.
Limited interest of the major powers
- Major powers have limited interests in the peace process.
- The European Union has made it clear that its financial contribution will depend on the security environment and the human rights record.
- China can always lean on Pakistan to preserve its security and connectivity interests.
- For Russia, blocking the drug supply and keeping its southern periphery secure from extremist influences is key.
- That is why no major power is taking ownership for the reconciliation talks, but merely content with being facilitators.
Conclusion
A more active engagement will enable India to work with like-minded forces in the region to ensure that the vacuum created by the U.S. withdrawal does not lead to an unravelling of the gains registered during the last two decades.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Indus Water Treaty
Mains level: Reconsideration of IWT over cross border terrorism
September 19 this year marks the 60th anniversary of the Indus Water Treaty (IWT) between India and Pakistan.
Tap to read more about Indus River System:
Drainage System | Part 3
Indus Waters Treaty, 1960
- The Indus Waters Treaty is a water-distribution treaty between India and Pakistan, brokered by the World Bank signed in Karachi in 1960.
- According to this agreement, control over the water flowing in three “eastern” rivers of India — the Beas, the Ravi and the Sutlej was given to India
- The control over the water flowing in three “western” rivers of India — the Indus, the Chenab and the Jhelum was given to Pakistan
- The treaty allowed India to use western rivers water for limited irrigation use and unrestricted use for power generation, domestic, industrial and non-consumptive uses such as navigation, floating of property, fish culture, etc. while laying down precise regulations for India to build projects
- India has also been given the right to generate hydroelectricity through the run of the river (RoR) projects on the Western Rivers which, subject to specific criteria for design and operation is unrestricted.
Based on equitable water-sharing
- Back in time, partitioning the Indus rivers system was inevitable after the Partition of India in 1947.
- The sharing formula devised after prolonged negotiations sliced the Indus system into two halves.
- Equitable it may have seemed, but the fact remained that India conceded 80.52 per cent of the aggregate water flows in the Indus system to Pakistan.
- It also gave Rs 83 crore in pounds sterling to Pakistan to help build replacement canals from the western rivers. Such generosity is unusual of an upper riparian.
- India conceded its upper riparian position on the western rivers for the complete rights on the eastern rivers. Water was critical for India’s development plans.
India plays resilient
- That the treaty has remained “uninterrupted” is because India respects its signatory and values trans-boundary Rivers as an important connector in the region in terms of both diplomacy and economic prosperity.
- There have been several instances of terror attacks which could have prompted India, within the Vienna Convention on the Law of Treaties, to withdraw from the IWT.
- However, on each occasion, India chose not to do so.
Significance of the treaty
- It is a treaty that is often cited as an example of the possibilities of peaceful coexistence that exist despite the troubled relationship.
- Well-wishers of the treaty often dub it “uninterrupted and uninterruptible”.
- The World Bank, which, as the third party, played a pivotal role in crafting the IWT, continues to take particular pride that the treaty functions.
Need for a rethink
- The role of India, as a responsible upper riparian abiding by the provisions of the treaty, has been remarkable.
- However, of late, India is under pressure to rethink the extent to which it can remain committed to the provisions, as its overall political relations with Pakistan becomes intractable.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: CAROTAR rules
The Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020 (CAROTAR, 2020) shall come into force from September 21.
Try this PYQ:
Q.In the context of the affairs of which of the following is the phrase “Special Safeguard Mechanisms” mentioned in the news frequently?
(a) United Nations Environment Programme
(b) World Trade Organization
(c) ASEAN- India Free Trade Agreement
(d) G-20 Summits
CAROTAR rules
- Importers will have to do their due diligence to ensure that imported goods meet the prescribed ‘rules of origin’ provisions.
- This is the essential availing concessional rate of customs duty under free trade agreements (FTAs).
- A list of minimum information, which the importer is required to possess, has also been provided in the rules along with general guidance.
- Also, an importer would now have to enter certain origin related information in the Bill of Entry, as available in the Certificate of Origin.
Why need CAROTAR?
- CAROTAR 2020 supplements the existing operational certification procedures prescribed under different trade agreements.
- India has inked FTAs with several countries, including Japan, South Korea and ASEAN members.
- Under such agreements, two trading partners significantly reduce or eliminate import/customs duties on the maximum number of goods traded between them.
- The new rules will assist customs authorities in the smooth clearance of legitimate imports under FTAs.
Its significance
- The ASEAN FTA allows imports of most items at nil or concessional basic customs duty from the 10-nation bloc.
- Major imports to India come from five ASEAN countries — Indonesia, Malaysia, Thailand, Singapore and Vietnam.
- The benefit of concessional customs duty rate applies only if an ASEAN member country is the country of origin of goods.
- This means that goods originating from China and routed through these countries will not be eligible for customs duty concessions under the ASEAN FTA.
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