Tax Reforms

Did Corporate Tax cuts increase Wages?

Note4Students

From UPSC perspective, the following things are important :

Mains level: Impact of tax cut on the economy;

Why in the News?

Before the pandemic, the U.S. and India reduced corporate taxes to boost growth but we now we can evaluate their effects.

Case Study on the Effects of Tax Cuts in the U.S.

The Tax Cuts and Jobs Act (TCJA), enacted in December 2017, significantly reduced the corporate tax rate from 35% to 21%. A recent analysis by economists Gabriel Chodorow-Reich, Owen Zidar, and Eric Zwick highlights several key findings:

  • Investment Increase: The TCJA led to an estimated increase in investment of approximately 8% to 14%.
  • GDP Growth: The long-term increase in GDP is projected to be modest, around 0.9%, which is substantially lower than initial expectations.
  • Wage Impact: The increase in annual wages due to the tax cuts was less than $1,000 per worker, contrasting sharply with earlier claims of increases between $4,000 and $9,000.
  • Tax Revenue Decline: The TCJA is expected to result in a long-term reduction in tax revenue of nearly 41%, raising concerns about the fiscal health of the U.S. economy.

Tax Cuts in India

In September 2019, India also implemented corporate tax cuts, reducing the rate for existing companies from 30% to 22% and for new companies from 25% to 15%.  The primary reason for this move was to stimulate economic growth and attract investment, particularly in the manufacturing sector.

Impact of the Tax cuts:

  • Revenue Loss: The tax cuts resulted in a revenue loss of approximately ₹1 lakh crore in 2020-21.
  • Gig workers (insecure forms of work): Although unemployment has decreased since the pandemic, much of the new employment is in insecure forms of work.
  • Decline in Regular Employment: According to the Periodic Labour Force Survey (PLFS) in India, the share of regular wage employment fell from 22.8% in 2017-18 to 20.9% in 2022-23.
  • Tax Burden Shift: There has been a notable shift in the tax burden from corporate taxes to individual income taxes. The share of corporate taxes in gross tax revenues fell from about 32% in 2017-18 to 26.5% in 2024-25.

What must be the next step? ( Way forward)

  • Focus on Future Investment: Policymakers should consider implementing high taxes on existing profits while providing incentives for future investments to stimulate economic activity.
  • Addressing Income Inequality: Tax policies should be designed to ensure that the benefits of tax cuts do not disproportionately favour wealthier individuals or corporations at the expense of wage earners.
  • Evaluating Economic Conditions: Need to evaluate the tax cuts to ensure they are not merely providing short-term benefits without addressing long-term growth and fiscal stability.

Mains PYQ:

Q  Enumerate the indirect taxes which have been subsumed in the Goods and Services Tax (GST) in India. Also, comment on the revenue implications of the GST introduced in India since July 2017. (UPSC IAS/2019)

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How does John Mill’s theory define the Extent of Liberty?

Note4Students

From UPSC perspective, the following things are important :

Prelims level: About Harm Principle,

Mains level: Significance of Freedom of Speech and Expression and its limitation;

Why in the News?

A minor girl’s gang rape in Assam led to Chief Minister Sarma’s anti-Muslim remarks, criticized as hate speech, violating India’s secular Constitution and potentially harming societal harmony, breaching Mill’s Harm Principle.

What does the Harm Principle Say?

The harm principle, articulated by philosopher John Stuart Mill in his essay on ‘Liberty’, asserts that the actions of individuals should only be limited to prevent harm to others.

  • Legitimate Use of Power: The only justification for exercising power over any member of a civilized community, against their will, is to prevent harm to others. This means that individual liberties should be respected unless they infringe upon the rights or well-being of others.
  • Self-Regarding vs. Other-Regarding Actions: Mill distinguishes between self-regarding actions (which affect only the individual) and other-regarding actions (which affect others).
    • Society or the state has no right to interfere in self-regarding actions, but it can regulate other-regarding actions that cause harm.
  • Definition of Harm: Harm is defined as wrongful setbacks to interests to which individuals have rights. Mill emphasizes that mere offence or disapproval does not constitute harm.
    • For example, someone may be offended by another’s opinion, but this does not justify restricting that opinion unless it incites violence or causes direct harm.
  • Limitations of Freedom: Mill acknowledges that while individuals should have the freedom to act as they choose, this freedom can be curtailed when their actions pose a significant threat to others. For instance, inciting violence is harmful and justifies state intervention.

What does Mill say about ‘Freedom of Speech and Expression’?

  • Importance of Free Speech: Mill talks about the idea that all opinions, whether true or false, should be allowed to flourish because they contribute to the pursuit of truth. 
    • Silencing any opinion robs humanity of the opportunity to challenge and refine its beliefs.
  • Truth and Error: Mill argues that the collision of differing opinions helps people correct their errors and strengthen their understanding of the truth. Even false beliefs are valuable as they force us to defend and reinforce our beliefs.
  • Limitations: While Mill strongly advocates for free speech, he acknowledges that it can be limited in cases where speech directly incites harm, such as inciting violence against a specific group. He provides the example of expressing harmful opinions to an agitated crowd, which could lead to immediate danger.
  • Balancing Freedom and Harm: Mill recognizes that while free speech is vital, it must be balanced against the potential harm it might cause, especially when it leads to violence or significant psychological harm to targeted groups.

Way forward: 

  • Strengthen Legal Frameworks: Enhance laws against hate speech to ensure accountability, balancing the right to free expression with the need to protect societal harmony and prevent violence.
  • Promote Inter-Community Dialogue: Encourage programs fostering tolerance and understanding between communities, reinforcing the secular principles of the Constitution and mitigating divisive rhetoric.

Mains PYQ:

Q  What do understand by the concept “freedom of speech and expression”? Does it cover hate speech also? Why do the films in India stand on a slightly different plane from other forms of expression? Discuss. (UPSC IAS/2014)

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OBOR Initiative

Dealings at a China-Africa forum that India must track

Note4Students

From UPSC perspective, the following things are important :

Prelims level: China-Africa Cooperation (FOCAC);

Mains level: India-Africa relation;

Why in the News?

The 9th edition of the Forum on China-Africa Cooperation (FOCAC) is scheduled to be held in Beijing from 4th to 6th September, 2024.

About the China-Africa Cooperation (FOCAC)

The Forum on China-Africa Cooperation (FOCAC) was established in 2000 to enhance the strategic partnership between China and African nations. It serves as a platform for collective dialogue and cooperation in various sectors, including trade, investment, and development.

Challenges of China-Africa Debt:

  • Chinese loans to African countries amounted to approximately $170 billion from 2000 to 2022. However, Chinese lenders represent only about 12% of Africa’s total public and private debt, indicating that China is not the primary creditor.
  • A significant portion of Chinese loans is not disclosed in sovereign debt records, complicating the understanding of Africa’s overall debt levels. This lack of transparency raises concerns about the sustainability of these debts.
  • Despite concerns over “debt trap diplomacy,” China is unlikely to forgive or cancel debts but may consider writing off smaller, interest-free loans.

African Priorities at FOCAC 2024

  • Economic Goals: African nations are focusing on enhancing trade relations with China, with a modest goal of $300 billion in imports from Africa between 2022-2024. As of mid-2024, trade has reached $167 billion, primarily dominated by raw materials.
  • Agricultural Development: There is a pressing need to develop a sustainable agricultural industry in Africa. This includes improving the processing of agricultural commodities and leveraging the expertise of countries like China and India to enhance crop resilience and productivity.
  • Green Energy and Industrialization: African countries are advocating for the establishment of refining and processing hubs to increase the value added from their raw materials.

What are the learnings that India can have?

  • Continuity in Engagement: India should emphasize consistent engagement with Africa, particularly by organizing the India-Africa Forum Summit (IAFS-IV) to capitalize on recent momentum, especially after the African Union’s inclusion in the G-20.
  • Support for Industrialization: Indian companies are encouraged to invest in higher value-added sectors in Africa, such as agriculture and pharmaceuticals, to foster local employment and market development.
  • Private Sector Participation: Greater involvement of the Indian private sector is essential, along with innovative financing solutions like public-private partnerships to support projects in Africa.
  • Digital and Financial Connectivity: Utilizing India’s digital stack and establishing rupee-based financial transactions can enhance connectivity and reduce forex risks for African nations.

Conclusion: India should deepen its strategic partnerships with African nations by expanding bilateral and multilateral engagements, focusing on key sectors like healthcare, digital infrastructure, and renewable energy. Leveraging India’s experience in these areas can help address African development needs while enhancing India’s influence on the continent.

Mains PYQ:

Q Increasing interest of India in Africa has its pros and cons. Critically Examine. (UPSC IAS/2015)

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Electoral Reforms In India

On Germany’s electoral architecture 

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Proportional Representation;

Mains level: Pros and cons of Proportional Representation;

Why in the News?

On July 30, Germany’s constitutional court approved downsizing the Bundestag, citing concerns over financial strain and efficiency due to its unprecedented 736 deputies.

(Note: The Bundestag is the Lower house of Germany)

Why has the German Constitutional Court upheld the move to downsize the lower house of parliament?

  • Constitutional Rationale: The court approved the plan to reduce the size of the Bundestag to improve its efficiency and reduce costs, as it had become the world’s largest elected assembly.
    • The court backed the government’s decision to limit the Bundestag to 630 members by removing “overhang” and “balance” seats, which had caused the number of legislators to grow significantly.
  • Legal Compliance: The court’s decision aligns with previous rulings that emphasized the need for electoral equality and the fair representation of political parties in the Bundestag, ensuring that the election system remains constitutionally valid.

How does a mixed-member Proportional Representation system work?

  • Dual Voting System: In Germany, each voter casts two votes in federal elections:
    1. First Vote: Directly elects a candidate from a local constituency via the first-past-the-post method (299 seats).
    2. Second Vote: Chooses a political party, which determines the distribution of another 299 seats proportionally across Germany’s 16 regions.
  • Seat Allocation: The second vote is crucial as it determines the overall proportion of seats each party holds in the Bundestag. The final seat count for each party is based on a combination of directly elected candidates and the proportion of the second vote.
  • Overhang Seats: If a party wins more direct seats than the proportion of the second vote would allow, these extra seats are known as “overhang seats.” These were traditionally retained, leading to an increase in the total number of seats.

How does a mixed-member Proportional Representation system work in India?

  • No MMP System in India: India does not use a mixed-member proportional representation system at the national level. The Indian electoral system primarily follows the first-past-the-post method, where the candidate with the most votes in each constituency wins a seat in the parliament.
  • Proportional Representation: In India, proportional representation (Single transferable) is used only in certain cases, such as elections to the Rajya Sabha (the upper house) and the President.

Types of Proportional Representation:

  • Single Transferable Vote (STV): This system allows voters to rank candidates in order of preference. It is used to elect members of the Rajya Sabha (Council of States) and the President of India.
  • Party-List PR: In this system, voters cast their votes for a party rather than individual candidates. Seats are allocated to each party based on the proportion of votes they receive. A minimum threshold (usually between 3-5%) is often required for a party to gain representation, preventing excessive fragmentation in the legislature.
  • Mixed-Member Proportional Representation (MMP): This combines elements of FPTP and PR, allowing voters to cast two votes—one for a candidate and another for a party. This system aims to balance the benefits of direct representation with proportionality.

What are balance or overhang seats and why were they deemed Unconstitutional?

  • Overhang Seats: These are additional seats that a party wins when it secures more direct constituency seats than it would be entitled to based on its second vote share. This situation arises due to the mixed-member proportional system.
  • Balance Seats: Introduced to maintain proportionality and fairness, balance seats are given to other parties to offset the overhang seats, ensuring that the overall seat distribution reflects the second vote shares accurately.
  • Unconstitutionality: In 2008, the German Constitutional Court ruled that the increasing number of overhang seats violated the principle of electoral equality. The recent judgment further upheld the move to eliminate these seats to simplify the electoral system and maintain fairness.

Conclusion: Germany should swiftly implement the downsizing plan, ensuring that the transition to a 630-member Bundestag is smooth and transparent, with clear communication to the public and political parties.

Mains PYQ:

Q Critically examine the procedures through which the Presidents of India and France are elected. (UPSC IAS/2022)

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Pension Reforms

Why did the Centre alter its pension plan?

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Unified Pension Scheme;

Mains level: Reason behind the need for a Unified Pension Scheme;

Why in the News?

The Union Cabinet approved a new Unified Pension Scheme for Central government employees, set to launch on April 1, 2025, benefiting 23 lakh employees.

What are the main features of the Unified Pension Scheme? 

  • Assured Pension: Employees will receive half of their average basic pay from the last 12 months of service as a monthly pension, provided they have served at least 25 years. A minimum pension of ₹10,000 is guaranteed for those with at least 10 years of service.
  • Family Pension: Dependents will receive 60% of the government worker’s pension upon their demise (death of a person).
  • Inflation Adjustment: Pension incomes will be adjusted for inflation, similar to the dearness relief provided to current employees.
  • Lump Sum Superannuation Payout: A lump sum equivalent to 1/10th of an employee’s salary and dearness allowance for every six months of service, in addition to gratuity benefits.
  • Contributory Mechanism: Employees will contribute 10% of their salary to the pension pool, while the government will contribute 18.5%.

How is it different from the current pension system?  

  1. Old Pension Scheme (OPS): Provided an assured pension at 50% of the last drawn salary with no contributions required from employees.
    1. It also offered an additional pension for pensioners above 80 years and adjustments based on Pay Commission recommendations.
  2. National Pension System (NPS): Introduced in 2004, it was a defined contribution scheme with 10% contributions from both employees and the government, but without guaranteed pension amounts.
  3. Unified Pension Scheme (UPS): Combines the assured pension model of OPS with the contributory mechanism of NPS, but with a higher government contribution (18.5%) and a guarantee of certain pension benefits.

Why did the government feel the need to bring about this change? 

  1. Employee Dissatisfaction with NPS: Government employees, especially those who joined post-2004 under the NPS, were dissatisfied with the uncertainty in pension incomes compared to their predecessors under the OPS.
  2. Political and Electoral Considerations: The issue became politically sensitive, with opposition parties promising to revert to OPS in some states, prompting the central government to address these concerns.
  3. Balancing Aspirations with Fiscal Prudence: The government aimed to find a middle ground that would satisfy employees while maintaining fiscal discipline.

How have government employees responded?  

  • Positive Reception: Government employees have largely welcomed the UPS as it addresses concerns with the NPS by reintroducing assured pension benefits and increasing the government’s contribution, offering greater financial security in retirement.
  • Reservations: Despite the positive aspects, there are concerns about the continued contributory nature of the scheme and the absence of a commutation option, with employees seeking more clarity on these issues.

What will be the cost to the exchequer?

  1. Immediate Costs: The UPS is expected to cost an additional ₹7,050 crore this year due to the higher government contribution and arrears for some employees.
  2. Future Financial Impact: While the initial impact will be the additional 4.5% contribution from the government, the assured pensions will increase future government liabilities. However, economists believe this can be managed through higher revenue growth and can be compared to the impact of Pay Commission revisions.

Way forward: 

  • Ensure Clear Communication and Transparency: The government should provide detailed guidelines and clarify any remaining ambiguities about the Unified Pension Scheme (UPS).
  • Plan for Long-Term Fiscal Sustainability: To manage the increased financial burden from the UPS, the government should incorporate these commitments into its fiscal planning, potentially exploring new revenue sources to maintain fiscal prudence while ensuring the long-term sustainability of the pension scheme.

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Foreign Policy Watch: India-Africa

A crisis in WANA that no one talks about 

Note4Students

From UPSC perspective, the following things are important :

Prelims level: West Asia and North Africa (WANA)

Mains level: Conflict in Africa;

Why in the News?

The fight between the Sudan Armed Forces (SAF), led by General Abdel Fattah al-Burhan, and the Rapid Support Forces (RSF), led by General Mohamed Hamdan Dagalo, also known as Hemayti (“My Protector”), has caused severe destruction in Sudan.

Historical Background of Sudan

  • Civil Strife and Governance: Sudan has a history of civil strife, marked by 15 military coups and two civil wars since its independence in 1956, resulting in 1.5 million deaths and the secession of South Sudan in 2011. The conflict in Darfur has been particularly notable, involving the Janjaweed militia and leading to over 200,000 deaths and millions displaced.
  • Current Crisis Genesis: The ongoing conflict is rooted in the 30 years of autocratic rule by Omar Hassan al-Bashir, who was overthrown in 2019. The subsequent attempts to establish a civilian government failed, culminating in a military coup in October 2021, which led to the current armed conflict between the Sudan Armed Forces (SAF) and the Rapid Support Forces (RSF) starting on April 15, 2023.

Global Power Competition and Regional Powers Influence

  • Foreign Involvement: Sudan’s conflict has drawn significant foreign interest due to its strategic location and natural resources. Egypt supports the SAF, while Iran backs the SAF despite its rivalry with Egypt. The UAE has emerged as the primary supporter of the RSF, providing weapons and resources. Russia’s Wagner Group has also supported the RSF, while the Kremlin seeks a naval base in Port Sudan.
  • Geopolitical Dynamics: The conflict has created complex alliances, with countries like Chad and Libya also involved. Mercenaries from various regions, including South Sudan and Ukraine, have joined the fray, complicating the conflict further.

Sudan and Syria Issue:

  • Humanitarian Crisis: Sudan’s crisis is particularly acute due to its strategic location and resource wealth, leading to a massive displacement crisis, with over 10 million people displaced since April 2023
  • Parallel Conflicts: Both Sudan and Syria have experienced severe internal conflicts driven by authoritarian regimes, regional power plays, and foreign interventions, leading to widespread human suffering and instability.

India’s Strategic Considerations:

  • Economic Interests: India’s trade with Sudan reached $2,034 million in 2022-23, with a significant trade surplus. India has also invested heavily in Sudan’s oil sector, with cumulative investments worth $2.3 billion.
  • Historical Ties: India has maintained strong people-to-people ties with Sudan, including educational exchanges and medical tourism. President A.P.J. Abdul Kalam’s visit in 2003 reinforced these relations.
  • Humanitarian and Diplomatic Engagement: India evacuated its nationals early in the conflict, but the ongoing crisis may require continued diplomatic and humanitarian engagement to protect its broader interests in the region.

Way forward: 

  • Strengthen Multilateral Diplomacy: India should collaborate with international bodies like the UN and the African Union to promote peace initiatives in Sudan, leveraging its neutral position to mediate and support conflict resolution efforts that safeguard regional stability and its strategic interests.
  • Expand Humanitarian and Development Aid: India can bolster its humanitarian assistance, focusing on essential services like healthcare and education, while also exploring opportunities for post-conflict reconstruction projects, ensuring long-term economic engagement and goodwill in Sudan.

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What is the Munich Agreement and the role it played in starting World War II?   

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Munich Agreement

Why in the News?

On September 1, 1939, German troops invaded Poland, sparking World War II. Britain and France declared war on Germany two days later, on September 3.

The Sudeten crisis 

  • Background: The Sudeten crisis emerged from Hitler’s demand that the German-majority regions of Czechoslovakia, known as Sudetenland, be ceded to Germany. These regions, with a population of over three million German-speaking people, were part of Czechoslovakia after the dissolution of the Austro-Hungarian Empire post-World War I. Hitler aimed to incorporate Sudetenland into his vision of a “Greater Germany.”
  • German Occupation: Following the Munich Agreement, German troops occupied Sudetenland from October 1 to October 10, 1938. This occupation was part of Hitler’s broader plan for territorial expansion.

About the Munich Agreement and changes after that 

  • Signatories: The Munich Agreement was signed on September 29-30, 1938, by Germany, France, Italy, and Great Britain. Czechoslovakia was not a party to the agreement but was pressured into accepting it by the signing powers.
  • Terms: The agreement allowed Germany to annex Sudetenland in exchange for a promise of peace. Great Britain’s Prime Minister Neville Chamberlain, who supported the agreement, famously declared it as “peace with honour” after returning from Munich.
  • Terms and Implementation:
    • Plebiscite: Some regions within Sudetenland were subject to a plebiscite for determining their fate.
    • Military Withdrawal: The Czechoslovak government was required to withdraw its military and police forces from Sudetenland and release Sudeten German prisoners within four weeks of the agreement.
  • Aftermath: Despite the Munich Agreement, Hitler violated the terms within six months by invading the rest of Czechoslovakia.
    • The Munich Agreement, intended to appease Hitler and maintain peace, ultimately failed and was seen as a significant misjudgment of dealing with expansionist totalitarian regimes.

Conclusion: The Munich Agreement, meant to appease Hitler by ceding Sudetenland to Germany, failed disastrously. Within six months, Hitler violated the agreement by invading the rest of Czechoslovakia, highlighting the dangers of appeasing expansionist totalitarian regimes.

Mains PYQ: 

Q There arose a serious challenge to the Democratic State System between the two World Wars.” Evaluate the statement. (2021)

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Indian Navy Updates

INS Arighat: India’s second nuclear sub

Note4Students

From UPSC perspective, the following things are important :

Prelims level: About INS Arighaat;

Why in the News?

India’s second nuclear submarine, the Arighaat, was officially commissioned into the Indian Navy in Visakhapatnam, following rigorous trials conducted over the past few months.

Status of Navy’s Submarines in India: 

  • Current Fleet: The Indian Navy’s submarine fleet includes two nuclear-powered ballistic missile submarines (INS Arihant and INS Arighaat) and 16 conventional submarines. The Navy is also constructing two additional larger SSBNs.
  • Operational Readiness: The Navy is authorized to maintain a fleet of 18 submarines, but operational availability can be affected by maintenance and refitting schedules, with about 30% of the fleet typically under repair.

About the newly inducted INS Arighaat

  • INS Arighaat is a 6,000-tonne Arihant-class ballistic missile submarine, which will join its predecessor, INS Arihant, as a vital component of India’s nuclear triad.
  • The submarine can carry up to 12 K-15 SLBMs with a range of approximately 750 km or four K-4 SLBMs exceeding 3,500 km.
    • It is powered by an 83 MW pressurized light-water nuclear reactor, allowing it to remain submerged for extended periods without surfacing compared to the diesel-electric submarine.
  • It will enhance India’s nuclear deterrence, support strategic balance in the region, and play a crucial role in national security.

How does it significantly strengthen India’s nuclear triad?

  • Enhances Second-Strike Capability:  With two nuclear submarines now operational, India can maintain a constant presence of a submarine patrolling its waters, ready to launch a nuclear strike at short notice in retaliation.  
  • Expands Missile Reach: INS Arighaat is equipped with indigenously developed K-15 missiles with a range of over 700 km and long-lasting availability underwater due to a nuclear-powered engine without surfacing.
  • From the South China Sea, these submarines can potentially target locations in China, including its capital Beijing.  
  • Both of this major developments will provide India with a more balanced and robust nuclear deterrent capability across all three domains – land, air, and sea.

Way forward: 

  • Indigenous Submarine Development: Accelerate the development and commissioning of indigenous SSBNs (Submersible Ship Ballistic Missile Nuclear) and advanced SLBMs (Submarine-Launched Ballistic Missiles) to further strengthen India’s strategic autonomy and ensure sustained deterrence capabilities.
  • Strategic Partnerships and Modernization: Enhance collaboration with global naval powers for technology transfers and expertise while modernizing the current submarine fleet to ensure continued operational readiness and address emerging maritime security challenges.

Mains PYQ: 

Q What are the maritime security challenges in India? Discuss the organisational, technical and procedural initiatives taken to improve maritime security. (UPSC IAS/2022)

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Foreign Policy Watch: India-Pacific Island Nations

 Pacific Islands Forum back joint police plan, maintain ties with Taiwan 

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Pacific Islands Forum (PIF);

Mains level: Importance of Taiwan for India;

Why in the News?

Pacific leaders endorsed a significant joint policing initiative and rejected attempts by China’s allies to marginalize Taiwan in the Pacific Islands Forum (PIF), held in Tonga.

              (Note: India and Taiwan are not a member countries.)

Why are the countries sticking to Taiwan despite the pressure?

  • Reaffirmation of Taiwan’s Status: The Pacific Islands Forum (PIF) leaders reaffirmed Taiwan’s participation as a “development partner,” despite efforts from China and the Solomon Islands to sideline Taiwan. 
    • Countries emphasize the importance of maintaining existing agreements from 1992 that recognize Taiwan’s role in the forum.
  • Support from Allies: Countries like New Zealand and the United States expressed support for Taiwan’s inclusion in the PIF, highlighting that any decision regarding the exclusion of parties should be made through consensus.
  • Resistance to Chinese Influence: Many nations recognize the strategic importance of Taiwan and its contributions against China’s increasing influence, leading them to uphold its involvement.

Significance of Taiwan for India: 

  • Strategic Balance in the Indo-Pacific: Taiwan is a crucial player in the Indo-Pacific region, and  India’s engagement with Taiwan serves as a counterbalance to China.
  • Economic and Technological Cooperation: Taiwan is a global leader in semiconductor manufacturing and advanced technology, areas where India seeks to enhance its capabilities.
  • People-to-People Ties and Education: Taiwan offers significant opportunities for Indian students and professionals in education and skill development.
    • For example, in 2018, the number of Indian students enrolled in Taiwanese universities reached 2,398, marking a 56% increase from the previous year.
  • Diversifying Supply Chains: In the wake of global disruptions due to COVID-19, India aims to diversify its supply chains. Taiwan’s expertise in manufacturing and electronics presents opportunities for India to reduce its dependence on other countries, particularly China, for critical components and technology.

What did the forum say on the Climate cash and French press?

  • Climate Finance Initiatives: The forum committed to organizing a “global pledging event” to raise funds for climate initiatives, with a goal of $500 million.
    • This decision was supported by UN Secretary-General Antonio Guterres, who emphasized the urgent need for climate finance in the Pacific, which is disproportionately affected by rising sea levels.
    • Although not officially on the agenda, deep-sea mining generated significant discussion among forum members. A company backed by Nauru plans to scale up ocean mining operations, while other members, like Palau, called for a moratorium due to environmental concerns. 
  • Concerns Over French Governance: The French government faced criticism during the forum for its handling of unrest in New Caledonia. A Pacific delegation is expected to conduct a fact-finding mission there, indicating ongoing tensions regarding French governance in the region and the need for improved oversight.

Conclusion: India should enhance diplomatic and economic ties with Taiwan by establishing formal mechanisms for regular dialogue and collaboration in areas such as technology, trade, education, and healthcare. This will reinforce strategic partnerships while respecting the “One China” policy framework. 

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 A game plan for India’s success as 2036 Olympic host 

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Khelo India Scheme;

Mains level: Issue of Infrastructure related to sports;

Why in the News?

During his Independence Day address from the Red Fort this August, Prime Minister Narendra Modi announced India’s aspiration to host the 2036 Olympic Games, stating that preparations are already underway to realize this dream.

Issue of Sports Infrastructure in Some States:

  • Limited Olympic-Standard Facilities: Currently, only about 10.4% of India’s mapped sports infrastructure meets Olympic standards. This includes only 1,645 completed facilities out of 15,822 across the country.
  • State-Level Disparities: Tamil Nadu leads with nearly 390 Olympic-standard facilities, followed by Delhi with 161 and Odisha with 153. This highlights a significant disparity in sports infrastructure across different states. 
    • The Gujarat government has earmarked Rs 6,000 crore for developing sports complexes in Ahmedabad.

Potential in the present state of Infrastructure:

  • Current Infrastructure Landscape: India’s sports infrastructure is still developing, with significant investments needed to meet international standards.
    • The Khelo India Scheme, launched in 2017, aims to enhance sports infrastructure and promote talent development, focusing on grassroots improvements.
  • Future Developments: Plans are underway to upgrade existing facilities and build new ones, particularly in states like Tamil Nadu and Gujarat, which have shown commitment to developing world-class sports venues.
  • Leveraging Existing Facilities: By utilizing existing sports infrastructure in states like Tamil Nadu, Delhi, and Odisha, India can advance a cost-efficient and eco-friendly bid for the Olympics. This strategy involves repurposing venues for public use post-games, ensuring lasting benefits.

Need for Collaborative Approach:

  • Multi-Stakeholder Involvement: A successful bid will require collaboration among various stakeholders, including state governments, sports associations, and the central government. A multi-stakeholder committee is essential to ensure that all voices are heard and that the bid reflects the country’s potential.
  • Building Consensus: The bid’s success hinges on building consensus both within India and with international stakeholders. This involves strategic planning and cooperation across political and territorial lines to present a unified front.

Significance for India: 

  • Catalyst for Sports Development: Hosting the 2036 Olympics would necessitate significant investments in sports infrastructure across India. This would not only enhance existing facilities but also promote grassroots sports development through initiatives like the Khelo India Scheme.
  • Economic and Tourism Boost: The event is expected to generate substantial economic benefits, including job creation and increased tourism. The influx of international visitors and media attention would provide a platform to showcase India’s cultural heritage.
  • National Pride and Unity: The successful hosting of the Olympics would serve as a symbol of national achievement, fostering unity and pride among citizens.

Conclusion: India should prioritize the expansion and upgradation of sports infrastructure across all states, focusing on creating new Olympic-standard facilities while enhancing existing ones. Leveraging the Khelo India Scheme, investments should be directed towards grassroots development to ensure widespread access to quality sports venues.

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Renewable Energy – Wind, Tidal, Geothermal, etc.

Cabinet approves BioE3 Policy for Fostering High-Performance Biomanufacturing  

Note4Students

From UPSC perspective, the following things are important :

Prelims level: BioE3 Policy;

Mains level: Significance of BioE3 Policy;

Why in the News?

The Union Cabinet has approved the ‘BioE3 (Biotechnology for Economy, Environment, and Employment) Policy’ proposed by the Department of Biotechnology to promote advanced biomanufacturing.

What is the BioE3 Policy?

The BioE3 (Biotechnology for Economy, Environment and Employment) Policy is a strategic initiative approved by the Indian Cabinet to foster high-performance biomanufacturing. 

Aims and Objectives of the Policy:

  • Innovation Support: The policy promotes research and development (R&D) and entrepreneurship in various thematic sectors, facilitating technological advancement and commercialization.
  • Biomanufacturing Hubs: It proposes the establishment of Biomanufacturing & Bio-AI hubs and Biofoundries to enhance India’s bioeconomy.
  • Focus Areas: The policy targets several strategic sectors, including high-value bio-based chemicals, biopolymers, smart proteins, precision biotherapeutics, climate-resilient agriculture, carbon capture, and marine and space research.

Significance of the Policy

  • Economic Growth: It is expected to catalyze a “bio revolution” similar to the IT revolution, generating substantial job opportunities in biotechnology and biosciences.
  • Sustainability Goals: The policy aligns with government initiatives for achieving a ‘Net Zero’ carbon economy and promotes sustainable lifestyles, thereby steering India towards accelerated green growth and a circular bio-economy.
  • Job Creation: By expanding the skilled workforce in biotechnology, the policy aims to create various kinds of employment opportunities, addressing critical societal issues such as climate change, food security, and human health.

Present Status of Indian Bio-economy

  • Growing Potential: The biotechnology sector is seen as a key player in addressing challenges in health, agriculture, environment, and energy. India has a large pool of young, skilled workers, with 47% of its population under the age of 25.
  • Investment in R&D: Despite its potential, India spends less than 1% of its GDP on research, compared to countries like Israel and South Korea, which invest over 4%.
  • Existing Infrastructure: The government has established 9 biotech parks and 60 bio-incubators, which support the growth of the biotechnology sector.

Challenges Ahead

  • Educational Gaps: The current educational curriculum does not adequately prepare students for industry demands, creating a skills mismatch.
  • Funding Issues: There is a lack of venture capital funding due to information asymmetry regarding the biotech industry, which hampers innovation and growth.
  • Clinical Trials: India conducts a low percentage of clinical trials compared to global standards, which is a concern for the development of biopharmaceuticals.
  • Research Investment: The government currently covers over 60% of total R&D spending, which is very different from countries where the private sector contributes a large portion.

Way forward: 

  • Enhance Industry-Academia Collaboration: Encourage partnerships between educational institutions and biotech companies to align curricula with industry needs, thereby reducing the skills mismatch and preparing students for emerging job markets.
  • Increase Private Sector Investment: Implement policies and incentives to attract more private sector investment in R&D, such as tax benefits, public-private partnerships, and improved access to venture capital, to stimulate innovation and reduce reliance on government funding.

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Panchayati Raj Institutions: Issues and Challenges

Moving the spotlight to grassroots democracy  

Note4Students

From UPSC perspective, the following things are important :

Prelims level: 73rd and 74th amendments;

Mains level: Issue of Disempowerment of State Election Commissions (SECs);

Why in the News?

The Election Commission of India (ECI) has established itself as one of India’s most credible institutions, known for consistently conducting free, fair, and timely elections to Parliament and State legislatures. However, the 34 State Election Commissions (SECs) still require significant attention and strengthening.

Issue of Disempowerment of State Election Commissions (SECs)

The Constitution (73rd and 74th amendments) vested SECs with the responsibility of conducting elections to panchayats and urban local governments, but in reality, SECs are increasingly disempowered by state governments.

  • Legal and Administrative Challenges: SECs sometimes find themselves in litigation with state governments. For instance, the Karnataka SEC has had to file contempt petitions against the state government for failing to fulfill commitments related to the conduct of elections, highlighting a lack of cooperation from state authorities.
  • Inadequate Empowerment: Many SECs do not have the power to conduct delimitation of wards or manage the electoral rolls independently. This results in reliance on the Election Commission of India (ECI) and state governments, which can lead to arbitrary decisions that delay elections.
    • Only 11 out of 34 states and UTs have empowered SECs to conduct ward delimitation, accounting for just 35% of India’s population.
  • Lack of Resources: SECs are legally entitled to request funds and assistance from state governments, but they often do not receive adequate resources, which hampers their ability to conduct elections effectively.
  • Public Trust Erosion: The delays and challenges faced by SECs undermine public confidence in local governance and electoral processes, leading to a perception that local elections are not as credible as those conducted by the ECI for national and state elections
  • Election not on time: Performance audits by the CAG found that 70% of urban local governments in 18 states did not have elected councils at the time of the audit due to delays caused by disempowered SECs.

Electoral Reforms Needed to Strengthen the Third Tier

  • Parity with the Election Commission of India: SECs should be made as transparent and independent as the Election Commission of India.
    • This could be achieved by appointing a three-member SEC through a committee comprising the Chief Minister, Leader of Opposition, and Chief Justice of the High Court, rather than by the State government alone.
  • Fixed Intervals for Delimitation: The delimitation of ward boundaries and reservations should be conducted at fixed intervals, such as every 10 years, to prevent arbitrary actions by State governments that delay elections.
  • Transfer of Powers to SECs: The powers of delimitation and reservation of seats for local governments should be vested in the SECs. SECs should also handle reservations for positions like mayors and presidents to avoid delays caused by State governments.

Conclusion: Strengthening SECs through these reforms is essential to ensure timely, transparent, and credible local elections, thereby reinforcing grassroots democracy and public trust in local governance.

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Foreign Policy Watch: India-Australia

What does Australia’s new cap on a number of international students mean?  

Note4Students

From UPSC perspective, the following things are important :

Mains level: Indian students in developed countries;

Why in the News?

Australia’s Education Minister announced a plan to establish a National Planning Level (NPL) that will cap the number of new international students at 2.7 lakh for the 2025 calendar year, subject to parliamentary approval.

What does the 2025 Cap entail?

  • Australia plans to introduce a cap on new international students at 2.7 lakh for the calendar year 2025.
  • Distribution of Seats:
    • Publicly funded universities: 1.45 lakh students (maintaining 2023 levels).
    • Vocational education and training (VET) sector: 95,000 new students.
    • Other universities and non-university providers: 30,000 students.
  • Certain categories, such as school students, research degree pursuers, students in standalone English language courses, government-sponsored scholars, and students from specific regions (e.g., Asia Pacific), are exempt from the cap.

Trends in Indian Student Enrollment in Australia:

  • In 2023, Australia admitted 5.61 lakh international students, in 2022, it saw 3.88 lakhs, in 2021, it had 2.82 lakhs, in 2020, it had 3.96 lakhs, and in 2019, it saw 5.19 lakh students.
  • 2024 Projections: Between January and May 2024, the total student commencements reached 2.89 lakh, with additional intakes expected later in the year, possibly surpassing 2023 levels.
  • Five-Year Trend: The 2025 cap will result in the lowest intake in the past five years, considering the effects of the COVID-19 pandemic on previous years’ admissions.

Possible Impacts on Indians Since Last Year:

  • Enrollment Numbers: The number of Indian students in Australia saw a decline from 126,487 in 2023 to 118,109 in 2024.
  • This comes on the back of moves by the Australian government to curb migration over the past six months, including higher IELTS band score requirements and the Genuine Student Test for applicants.
    • Universities, especially the Group of Eight (Go8) research-intensive universities, have criticized the capping as a “bad policy” that will adversely impact them.
  • Rising Costs: The Australian government increased the visa processing fee from AUD 710 to AUD 1,600 (approximately Rs 40,524 to Rs 91,321) as of July 1, 2024. This could deter prospective applicants due to financial constraints.

Way Forward: 

  • Increase Scholarships and Financial Aid: The Australian government and universities should offer more scholarships and financial aid packages to offset the higher costs and attract international students, particularly from India.
  • Strengthen Bilateral Education Ties: Enhance collaboration between Australian and Indian educational institutions to create joint programs and exchange opportunities, ensuring a steady flow of students despite the cap.

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Women empowerment issues – Jobs,Reservation and education

Analyzing the Gender Budget of 2024-25   

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Gender Budget;

Mains level: Issues related to Gender Budget;

Why in the News?

Women-led development is central in this year’s Budget, with Gender Budget allocations reaching 1% of GDP and over ₹3 lakh crore for pro-women programs.

About Gender Budgeting in India: 

  • The Gender Budget Statement (GBS) was introduced in the 2005-06 budget.
  • GBS has consistently represented an average of 5% of total budgetary allocations since its introduction, with minor fluctuations.
  • In the 2024-25 budget, the share of allocations to pro-women schemes has increased to approximately 6.8% of the total budget expenditure.

Different Components of the Gender Budget Statement

The Gender Budget Statement (GBS) is structured into three main parts:

  • Part A: This section includes schemes and programs that have 100% allocation specifically for women.
  • Part B: This part covers schemes with more than 30% but less than 100% of their allocations directed towards women.
  • Part C: Introduced recently, this section reports pro-women schemes that have less than 30% provisioning for women.

Instances of Missing Allocations Reported by Experts:

  • Pradhan Mantri Awas Yojana (PMAY): Initially, only a portion of PMAY’s budget was reported under Part B, which led to an underrepresentation of its impact on women. The entire allocation of ₹80,670 crore for 2024-25 was later moved to Part A, raising concerns about the accuracy of reporting since not all beneficiaries are women.
  • PM Employment Generation Programme (PMEGP): The GBS reported an allocation of ₹920 crore, which was claimed to be 40% of the total allocation to PMEGP, without a clear rationale for this percentage.
  • Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS): Although women constituted 59.3% of all person-days under MGNREGS, only 33.6% of its total outlay was reflected in the GBS, indicating a significant underreporting of women’s engagement and benefits from the scheme.

How should these anomalies be rectified by the Government (Way forward):

  • Incorporate Explanations: Providing clear explanations for the allocations reported in the GBS would enhance transparency and accountability.
  • Audit of Budgetary Allocation: The government should involve regular audits and assessments of how budgetary allocations impact gender equality.
  • Engage Stakeholders: Involving experts and stakeholders in the process of developing the GBS can provide insights into the specific needs of women and help ensure that the budget effectively addresses those needs.

Mains PYQ: 

Q Women empowerment in India needs gender budgeting. What are requirements and status of gender budgeting in the Indian context? (2016)

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Women empowerment issues – Jobs,Reservation and education

Himachal Bill raises women’s marriage age  

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Prohibition of Child Marriage Act, 2006 (PCM Act);

Mains level: Significance of raising the marriage age for women from 18 to 21 years ;

Why in the News?

The Himachal Pradesh Assembly passed a Bill on tuesday to increase the minimum marriage age for women from 18 to 21 years.

Why did the Himachal Pradesh Assembly pass the Bill?

  • For Empowerment: The bill aims to provide them with more opportunities for education, career development, and overall personal growth.
  • For Health and Well-being: The Bill addresses the adverse health impacts associated with early marriage and motherhood, emphasizing the importance of allowing women to mature physically before starting a family.
  • For Social Justice: The bill aims for equal opportunities and ensures that women are not deprived of opportunities due to early marriage. 

What is the Prohibition of Child Marriage Act (PCM) Act?

  • The PCM Act, 2006 is a significant piece of legislation in India aimed at preventing child marriages and protecting the rights of children.
  • Under the Act, a “child” is defined as a male who has not completed 21 years of age and a female who has not completed 18 years of age.

What are the new proposed Amendments to the PCM Act?

  • Uniform Marriage Age: The Bill amends Section 2(a) of the PCM Act, redefining a “child” as any male or female who has not completed 21 years of age, eliminating the previous gender-based distinction.
  • Overriding Clause: The Bill amends Section 2(b) to include a clause that gives the new marriage age an overriding effect over any other law, custom, or usage, making it universally applicable in Himachal Pradesh.
  • Extension of Annulment Period: The Bill increases the period for filing a petition to annul a child marriage from two years after attaining majority to five years, allowing both men and women to annul their marriage until they turn 23.

How will the Bill’s amendments to the PCM Act come into force?

  • Concurrent List Consideration: Marriage is a subject under the Concurrent List, allowing both the central and state governments to legislate on it. However, the Bill introduces amendments to a central law, making it potentially “repugnant” to the PCM Act.

Note:

  • In the legal context, “repugnant” refers to a situation where a law enacted by a state legislature conflicts with or is contradictory to an existing central law on the same subject.
  • Article 254(1): If there is a conflict between a central law and a state law on a subject listed in the Concurrent List, the central law will prevail, and the repugnant portion of the state law will be considered void.
  • Governor’s Assent: As the Bill amends a central law, it must be reserved for the President’s consideration under Article 254(2) of the Constitution after being passed by the state Assembly and receiving the Governor’s assent.
  • President’s Approval: The Bill will become law only if the President of India gives her assent. This process ensures that the state’s amendments are consistent with the Constitution and central laws.

Way Forward: 

  • Align with National Law: Coordinate with the central government to harmonize the amended marriage age with national legislation, ensuring legal consistency.
  • Community Awareness: Implement targeted awareness campaigns to educate the public on the benefits of delaying marriage, emphasizing women’s education and health.

Mains PYQ:

Q Empowering women is the key to control the population growth.” Discuss. (UPSC IAS/2019)

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Tuberculosis Elimination Strategy

Sharpening India’s anti-tuberculosis fight     

Note4Students

From UPSC perspective, the following things are important :

Prelims level: About BPaL/M;

Why in the News?

In the present context, in India, there are groundbreaking new treatments available, but we need to rethink and update the program to eliminate TB.

Current status of TB in India: 

  • Incidence Rate: As of 2022, the incidence rate of TB in India was reported at 199 cases per 100,000 population, a decline from 237 per lakh population in 2015. This reflects a 16% decrease in new TB cases since 2015.
  • Prevalence: The estimated prevalence of tuberculosis infection (TBI) among individuals over 15 years of age was around 31% according to a national survey conducted from 2019 to 2021. 
  • Global Contribution: India accounted for approximately 26% of the global incidence of TB cases in 2020. In that year, India also represented 38% of global TB deaths among HIV-negative individuals.
  • Mortality Rate: The mortality rate due to TB decreased from 28 per lakh population in 2015 to 23 per lakh population in 2022, indicating progress in managing the disease.
  • Total Cases: Estimates suggest that the total number of TB cases in India has increased from 2.2 million to 2.6 million in recent years, reflecting ongoing challenges in detection and treatment.

What were the problems with previous Extended Treatment Regimen?

  • Lengthy and Complex: Traditional TB treatment regimens are long and require patients to take 13 to 14 tablets daily for 9 to 11 months, or 4 to 5 tablets daily for 18 to 24 months.
  • Severe Side Effects: These regimens are physically and psychologically draining, causing side effects like loss of hearing and psychosis.
  • Economic Impact: Prolonged treatment leads to loss of employment and drives many families into poverty due to the need for frequent clinic visits.

WHO-Recommended Effective Regimen:

  • BPaL/M Regimen: WHO has recommended a shorter, safer, and more effective regimen called BPaL/M for drug-resistant TB patients.
  • Advantages: This regimen requires only 3 to 4 tablets daily for six months, with fewer side effects and higher success rates (89% compared to 68% for traditional treatments).
    • Close to 80 countries have procured the BPaL/M regimen, and 20 high-burden countries are already rolling it out.

 

Present TB Elimination Policy in India:

  • The deficiency in the NTP was identified in 1963 and the Revised National TB Control Programme was developed.
  • Presently, India’s National TB Elimination Programme 2023 is leading the effort to meet the goal of eliminating TB by 2025, five years ahead of the SDGs.
  • Ending the TB epidemic by 2030 is among the health targets of the UN’s Sustainable Development Goals.

How India can make the best use of new treatments?

  • Proactive Screening and Diagnosis: Focus on modernizing health datasets, GIS mapping, and conducting targeted multi-disease screening drives, especially in vulnerable populations (e.g., those with comorbidities, slum dwellers, and prisoners).
  • Advanced Diagnostic Tools: Expand the use of portable X-ray machines with AI-driven tools and rapid molecular tests for faster and more accurate detection and drug resistance profiling.
  • Early Detection and Treatment: Leveraging new technologies and proactive measures will help improve TB detection rates, reduce delays, and enhance treatment outcomes, ultimately aiding in the elimination of TB in India.

Conclusion: India need to invest in advanced diagnostic tools like AI-driven portable X-ray machines and rapid molecular tests to ensure early and accurate detection of TB, particularly in high-risk and underserved populations, to support timely treatment and reduce TB incidence.

Mains PYQ:

Q Can overuse and free availability of antibiotics without Doctor’s prescription, be contributors to the emergence of drug-resistant diseases in India? What are the available mechanisms for monitoring and control? Critically discuss the various issues involved. (UPSC IAS/2014)

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Foreign Policy Watch: India-Canada

How Canada’s policy of ‘reducing low-wage, temporary workers’ may impact Indians?       

Note4Students

From UPSC perspective, the following things are important :

Prelims level: “Temporary Workers” in Canada;

Mains level: Canada’s Policy of “Reducing” Such Workers' Impact on Indians;

Why in the News?

On Monday, August 26, Canadian PM Justin Trudeau announced that Canada would be “reducing the number of temporary foreign workers in low-wage jobs.”

Who are these “Temporary Workers” in Canada?

Temporary workers in Canada encompass various categories of individuals, including:

  • Temporary Work Visa Holders: These individuals come to Canada for a fixed duration, typically two years, to work in low-wage jobs that pay between CAD 13-19 per hour (approximately Rs 800-1,200 per hour).
  • International Students: After completing their studies, many international students remain in Canada on work visas for one to three years while applying for Permanent Residency (PR).
  • Spouse Open Work Permit Holders: Many international students bring their spouses to Canada, who can work in low-wage jobs under this permit.
  • Labour Market Impact Assessment (LMIA) Workers: These workers are hired under LMIA contracts, which allow employers to recruit foreign workers when they cannot find Canadians to fill job openings.
  • Humanitarian Arrivals and Youth Program Participants: This category includes individuals arriving through special humanitarian pathways, such as the Canada-Ukraine Authorization for Emergency Travel (CUAET), asylum seekers, and participants in reciprocal youth programs that allow Canadians to work abroad.

How will Canada’s Policy of “Reducing” Such Workers Impact Indians?

  • Reduced Opportunities: The restrictions on temporary workers will limit job opportunities for many Indians, particularly students and their spouses, who make up a significant portion of the temporary workforce.
  • Impact on International Students: Indians constitute around 40% of Canada’s international student population, with a majority coming from Punjab. The new policy may restrict their ability to transition from temporary work to permanent residency.
  • Shift in Immigration Dynamics:  The introduction of restrictions emphasizes a policy shift that could deter potential migrants from considering Canada as a destination.

Indians in Canada: 

  • The Indian community in Canada has grown significantly in recent years. Between 2000 and 2020, the registered Indian population increased from 670,000 to over 1 million.
  • As of 2021, there were approximately 1.8 million people of Indian origin in Canada, representing over 5% of the total population.
  • Indian students are the largest international student group in Canada, accounting for 20% of all international students in 2021. There were over 319,000 Indian students enrolled in Canadian institutions, contributing approximately US$ 4.9 billion to the Canadian economy in 2021
  • Many highly skilled Indian professionals contribute to various sectors, including technology, healthcare, and engineering. In 2022, over 15,000 Indian tech workers moved to Canada, enhancing the labor market with their expertise.

Way forward: 

  • Strengthen Domestic Opportunities: India should focus on creating more job opportunities and enhancing skill development programs within the country to reduce dependency on foreign employment, ensuring that young professionals and students have viable career options at home.
  • Bilateral Engagement and Negotiation: Engage in diplomatic discussions with Canada to advocate for the interests of Indian workers and students, seeking to ensure continued access to work and study opportunities under fair and equitable conditions.

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Economic Indicators and Various Reports On It- GDP, FD, EODB, WIR etc

 An either-or approach won’t help quell food inflation 

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Food inflation trend;

Mains level: Impact of food inflation;

Why in the News?

The recently released Consumer Price Index-Combined (CPI-C) data reveals that food inflation, particularly from pulses, vegetables, and cereals, is rising faster than the overall CPI inflation.

  • The Consumer Price Index-Combined (CPI-C) is the index used to calculate headline inflation in India. It is calculated and published monthly by the Bureau of Labor Statistics.

Key Highlights of the CPI-C Data:

  • On Current Inflation Rates: The general CPI inflation stands at 3.54%, while food inflation is notably higher at 5.06%, driven by increases in prices of pulses, vegetables, and cereals.
  • On Inflation Dynamics in the Past: Over the past decade, food inflation has contributed to the overall volatility of prices. In 52 of the 124 months analyzed, food inflation exceeded the general CPI rate, indicating a significant and fluctuating impact on overall inflation.
  • Expectations by the report: The RBI has highlighted that food inflation significantly influences inflationary expectations, which remain unanchored, often exceeding actual inflation rates.

(*Note: These data don’t include income taxes or investment items like stocks, bonds, and life insurance.)

Recently impact of good Monsoon on Food Production and Inflation: 

  • Increased Sowing Due to Robust Monsoon: India has reported a significant increase in the sowing of paddy and pulses, with paddy sowing up by 16% to 39 million hectares and pulses by 7% to 12 million hectares as of August 23, 2024, driven by a strong monsoon.
  • Potential Impact on Food Inflation: Despite concerns over rising food inflation, the expanded cultivation area for staple crops like rice and pulses could positively impact the agriculture sector and support government efforts to enhance farm productivity.

Present Situation of Inflation in the Agri-Food Sector

  • Volatility in Food Prices: Food inflation has been volatile, with instances of both high and low inflation. For example, food inflation was above 6% in 52 out of 124 months, while it was below 2% in 20 months, including periods of negative inflation.
  • Supply-Side Factors: The disparities between food and retail inflation can be attributed to supply-side issues such as monsoon variability, crop failures, and government policies like minimum support prices (MSPs). Excess demand for specific food categories, such as oils and fats, has also contributed to higher inflation.
  • Regional Disparities: Rural CPI inflation is higher (5.43%) compared to urban CPI (4.11%), reflecting the impact of agricultural conditions and market dynamics on rural households.

How Can the Gap Between Farmer and Consumer Be Reduced?

  • Market-Driven Pricing: The government should reconsider its intervention in agricultural markets through MSPs, allowing market forces to determine food prices. This could help reduce production distortions and improve price signals for farmers.
  • Enhancing Agricultural Productivity: Government expenditure should focus on increasing agricultural productivity through better technology and irrigation practices, which can lead to more stable food supplies and prices.
  • Reducing Middlemen: Implementing measures to eliminate middlemen in the supply chain can help narrow the gap between what farmers receive and what consumers pay.
  • Infrastructure Development: Improving infrastructure for storage and transportation can help reduce food wastage and ensure that food products reach consumers efficiently, further stabilizing prices.

Conclusion: Need to encourage the adoption of advanced agricultural technologies and sustainable farming practices to boost productivity and reduce the impact of supply-side disruptions, ensuring more consistent food supplies and stable prices.

Mains PYQ:

Q Do you agree with the view that steady GDP growth and low inflation have left the Indian economy in good shape? Give reasons in support of your arguments.  (UPSC IAS/2017)

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Coronavirus – Disease, Medical Sciences Involved & Preventive Measures

 Advancing equity, from COVID-19 to Mpox  

Note4Students

From UPSC perspective, the following things are important :

Prelims level: About Monkeypox;

Mains level: Major Learnings from the COVID-19 Pandemic;

Why in the News?

The recent declaration of Mpox (formerly monkeypox) as a Public Health Emergency of International Concern (PHEIC) by the WHO highlights several critical lessons learned from the COVID-19 pandemic.

Major Learnings from the COVID-19 Pandemic

  • Vaccine Manufacturing Capabilities: The COVID-19 pandemic exposed significant gaps in vaccine manufacturing capabilities, particularly in the Global South. This inadequacy was exacerbated by limited technology transfers and a lack of know-how to produce vaccines developed in high-income countries.
    • The current response to the Mpox outbreak reflects similar challenges, emphasizing the need for robust local manufacturing capabilities to ensure equitable access to vaccines.
  • Global Cooperation: The pandemic underscored the necessity of international collaboration in health emergencies. The WHO’s declaration of Mpox as a PHEIC aims to foster this cooperation, encouraging countries and organizations to share information and resources to combat the outbreak.
  • Equity in Health Responses: The recent amendments to the International Health Regulations (IHR) include equity as a core principle, which is crucial for ensuring that all countries, particularly those in lower-middle-income regions, have access to essential medical products during emergencies.

Recent Initiatives by India’s Drug Regulatory Agency:

  • On August 7, 2024, India’s Central Drugs Standard Control Organization (CDSCO) decided that drugs already approved in developed countries like the U.S. and those in the EU can be used during pandemics in India without needing to go through clinical trials here.
  • This regulatory change is expected to expedite the availability of critical vaccines like MVA-BN (Jynneos) in India, facilitating faster access to vaccines necessary to combat the Mpox outbreak.

What could be the more improved solution for it?

  • Scaling Up Production: The demand for pox vaccines is anticipated to surge, with estimates by AfricaCDC, suggesting that 10 million doses are needed to control the outbreak. However, only 0.21 million doses are currently available.
    • Indian manufacturers, such as the Serum Institute of India and Bharat Biotech, have the potential to rapidly scale up production of the MVA-BN vaccine using established processes and supply chains.
  • Comprehensive Technology Transfer: Effective technology transfer involves sharing not only the vaccine but also the necessary biological resources, manufacturing know-how, and patents. This is essential to enable lower-middle-income countries to produce vaccines independently, reducing reliance on high-income countries.
  • Collaborative Negotiations: The Indian government, in collaboration with international organizations like WHO and Gavi, should negotiate with Bavarian Nordic for technology transfer to technology transfer for developing the vaccine.

Way forward: 

  • Strengthen Local Manufacturing: Encourage Indian manufacturers like the Serum Institute of India and Bharat Biotech to rapidly scale up production of the MVA-BN vaccine, ensuring timely and sufficient supply to meet both domestic and global demand during the mpox outbreak.
  • Facilitate Technology Transfer: The Indian government should lead collaborative efforts with international organizations to secure comprehensive technology transfers, enabling domestic production of vaccines and reducing dependency on high-income countries.

Mains PYQ:

Q COVID-19 pandemic has caused unprecedented devastation worldwide. However, technological advancements are being availed readily to win over the crisis. Give an account of how technology was sought to aid the management of the pandemic.  (UPSC IAS/2016)

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Foreign Policy Watch: India-Pakistan

On the unrest in the Balochistan region

Note4Students

From UPSC perspective, the following things are important :

Mains level: Importance of Balochistan for India;

Why in the News?

The recent protests are a significant part of Balochistan’s long history of political struggles. They highlight the difficulties Pakistan faces in creating a country based solely on religion.

Causes and Reasons for the Recent Protests in Balochistan:

Balochistan has a long history of resistance against central authority, dating back to the forced accession of the region to Pakistan in 1948.

  • Political Discontentment: The continued centralization of power, lack of genuine federalism, and repeated dismissals of provincial governments have fueled discontent.
  • Economic Neglect: Despite being rich in resources like copper, gold, coal, and natural gas, Balochistan remains one of the poorest regions in Pakistan. The benefits of resource exploitation have not trickled down to the local population, exacerbating feelings of economic injustice.
  • Cultural and Ethnic Identity: Balochistan has a distinct cultural and historical identity, which has often clashed with the central government due to assimilation policies.
  • Human Rights Violations: The region has seen widespread reports of enforced disappearances, custodial killings, and fake encounters as part of Pakistan’s counter-insurgency strategy.

China’s Role in the Region:

  • Gwadar Port and Militarization Concerns: The Gwadar port, leased to a Chinese firm for 40 years, has raised fears of potential militarization, which could disrupt local livelihoods, especially those of the fishing communities.
    • The presence of Chinese trawlers has also sparked protests due to concerns about illegal fishing.
  • CPEC influence: The influx of non-locals into Balochistan for CPEC-related projects has led to fears of demographic changes, further alienating the local population.

Indian perspective: 

  • Strategic Implications: India’s interest in Balochistan primarily stems from the region’s strategic importance, given its location and the Gwadar port’s proximity to the Strait of Hormuz.
  • Diplomatic Stance: India has occasionally highlighted human rights issues in Balochistan, especially in international forums, as a counter-narrative to Pakistan’s stance on Kashmir. However, India’s involvement remains cautious to avoid escalating tensions with Pakistan.
  • Impact on Regional Stability: The unrest in Balochistan, coupled with Chinese involvement, complicates the security situation in South Asia.
    • India’s approach will likely focus on balancing its strategic interests while advocating for the rights of the Baloch people within international norms.

Way forward: (What should India do?)

  • Diplomatic Advocacy: India should continue to highlight human rights issues in Balochistan at international forums, positioning itself as a defender of human rights while maintaining a balanced approach to avoid escalating tensions with Pakistan.
  • Strategic Monitoring: India should closely monitor developments in Balochistan, particularly regarding Chinese activities in the Gwadar port, to safeguard its strategic interests and regional stability.

Mains PYQ: 

Q The China-Pakistan Economic Corridor (CPEC) is viewed as a cardinal subset of China’s larger ‘One Belt One Road’ initiative. Give a brief description of CPEC and enumerate the reasons why India has distanced itself from the same. (150 Words, 10 Marks)  (UPSC IAS/2018)

Q ‘China is using its economic relations and positive trade surplus as tools to develop potential military power status in Asia’, In the light of this statement, discuss its impact on India as her neighbor. (UPSC CSE 2017)

Q China and Pakistan have entered into an agreement for development of an economic corridor. What threat does this pose for India’s security? Critically examine (UPSC CSE 2014)

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