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

Capital Expenditure and Fiscal Consolidation

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Basics of Budget

Mains level: Capital expenditure and fiscal consolidation

Fiscal

Context

  • The 2023-24 Union budget will be announced on February 1, followed by the states’ respective budgets. These budgets will set the policy tone for the rest of the year and, as such, are followed closely.

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Situation of Capex and fiscal consolidation after pandemic

  • Rise in fiscal deficit: The overall fiscal deficit of the government has soared and we believe the next few years will be all about getting it back on track.
  • Rising interest payments: This is important because interest payments on past debt make up a whopping 50 per cent of net tax revenues for the central government, leaving very little room for other spending.
  • less room for social spending: Given the needs of the economy on various fronts like health, education and capex, it is important to lower the interest burden over time. That can only be achieved by fiscal consolidation.

Analysing the tax revenue and expenditure of central and state Government

  • Central government tax revenues have risen faster than state revenues: Both benefitted as small and informal firms struggled with the lockdowns and lost market share to large firms, which tend to pay more taxes.
  • Disparity in revenue collection: A large chunk of the tax revenues in the early part of the pandemic period came from the “special” duty and surcharge on oil, which went primarily to the central government. To be fair, the central government subsequently cut the duty on oil (in both 2021-22 and 2022-23) and the tax share that went to the states rose somewhat.
  • Capex of centre is more: The Centre has committed to more current expenditure than the states. While it increased across the board during the pandemic, current expenditure rose more for the central government.
  • Higher spending on social schemes: This was led by higher social welfare spending (for instance, on the free food distribution scheme) and, more recently, higher subsidies (for example, fertilisers) in the face of rising commodity prices.
  • States have a moderate capex: The common perception is that states have gone all out on unsustainable current expenditure. But the data shows that it’s just a few states which have spent heavily (for example, Telangana, Assam, West Bengal and Punjab).

Fiscal

Analyzing the capex and fiscal deficit of central and state government

  • The central government capex has risen but state capex has contracted: Making a commendable choice, the central government used both its tax bounty as well as its ability to borrow more at a time when banking sector liquidity was loose to raise capex spending, which rose by 1.2 per cent of GDP between 2019-20 and 2021-22.
  • Cut in state capex: On the other hand, the states cut back on capex, which has fallen as a percentage of GDP over the last few years, and continues to be on a weak footing in the current year. In fact, putting the central government’s capex alongside the state and public sector capex shows that the overall public sector thrust is not any stronger than it was back in 2018-19.
  • Centre has breached the fiscal deficit target: The central government’s fiscal deficit has overshot targets while the state deficit is relatively contained. At a budgeted 6.4 per cent of GDP in 2022-23, the central government’s fiscal deficit has risen above the pre-pandemic level of 3.4 per cent in 2018-19, and is well above the 3 per cent medium-term target.
  • Sharp fall in states fiscal deficit target: Even though the state fiscal deficit rose in the first year of the pandemic (from 2.5 per cent of GDP in 2018-19 to 3.8 per cent in 2020-21), it has fallen sharply since (to 2.7 per cent in 2021-22).
  • Low borrowing by states: In fact, state government borrowing is rather low in the current year so far. If this continues, the fiscal deficit could be even lower in 2022-23 (around 2.5 per cent of GDP), which is well under the 3 per cent medium-term target, and bang in line with pre-pandemic levels.

Fiscal

What are the challenges?

  • Less consolidation by states: The states have less fiscal consolidation to do than the central government.
  • High quality spending: Both have a common challenge to commit to more capex, which is considered high quality spending as it “crowds in” private investment if done responsibly. And we believe investment is the only sustainable way to increase the capacity of the economy to grow and create jobs.
  • Balancing the capex and fiscal consolidation: For the central government, the challenge is to hold on to its capex push at a time of fiscal consolidation. For the states, the challenge is to start doing more.

Fiscal

What should be the way forward?

  • Lowering the fiscal deficit: The central government’s aim is to lower the fiscal deficit by about 2 per cent of GDP over the next three years. About half of this consolidation can come from lowering current expenditure to pre-pandemic levels.
  • Raising the tax revenue through formalization: Continued formalisation of the economy that raises tax revenues (though “organic” formalisation will likely be more sustainable than “forced” formalisation).
  • Disinvestment of PSUs: A bigger push for disinvestment by selling stakes in public-owned companies, and further tax reforms (in terms of direct taxes and the GST).
  • Capex cut is the last option: If these don’t work, the default option will be to cut capex, which is a concern as it has implications for medium-term growth.

Conclusion

  • Fiscal consolidation and capital expenditure should go hand in hand. More government spending means more infrastructure building and more chances of growth and employment. However, this spending should be done with sound fiscal base.

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Historical and Archaeological Findings in News

India’s experience under colonial rule: A study by Dylan Sullivan and Jason Hickel

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Census in colonial rule

Mains level: Impact of colonial rule

colonial

Context

  • A recent study of India’s experience under colonial rule by Dylan Sullivan and Jason Hickel concludes that data from the Census of India reveal that between 1880 and 1920 approximately 100 million Indians died due to British policy in India. Their method is to calculate the excess mortality, being the difference between the actual deaths and the deaths that may be expected.

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What are assumptions made by their study?

  • Mortality rate before colonial rule: Before colonial rule, the mortality rate of India is unlikely to have been very different from that of contemporary England.
  • Deaths due to colonial policies during the period of 1880-1920: The resulting estimates for excess deaths during 1880-1920 are 50 million in the first case and 160 million in the second one, respectively. The authors settle for the midway figure of approximately 100 million for the deaths caused in India due to colonial policy.
  • Figure is greater than deaths from famine in other countries: For perspective, they point out that this figure is greater than the death from famine in “the Soviet Union, Maoist China, North Korea, Pol Pot’s Cambodia, and Mengistu’s Ethiopia”. In their view, this provides a direct assessment of the consequences of the Raj for India.

Study quantifying the impact of colonial rule in India

  • Change in national income as a basis to quantify impact of colonial rule is non-existent: Attempts to quantify the impact of colonial rule in India have mostly relied on the change in national income. But reliable income data for the nineteenth century are almost non-existent. Population figures, though, are available from the time of the first Census of India in 1871.
  • Steady rise in mortality rate: The mortality rate in British India is seen to rise steadily after 1881, recording an increase of close to 20% by 1921. As it is unusual for the mortality rate of a country to rise continuously due to natural causes, this suggests that the living conditions worsened during this period.
  • Mortality rate dipped in last census in British India but famine is not recorded: The mortality rate dipped in 1931, which was the last census conducted in British India, but the last famine recorded in the country was yet to come. It took place in Bengal in 1943, in the last five years of the close to two centuries of British colonial rule.

colonial

How recurring famines are recorded?

  • British arguments for the empire: Arguments include “English forms of land tenure, the English language, banking, the common law, Protestantism, team sports, the limited state, representative assemblies, and the idea of liberty”, have been advanced by the Harvard historian Niall Ferguson.
  • No mention of the famines: There is no mention of the famines which started almost at the onset of rule by the East India Company in Bengal, the de-industrialisation of India in the nineteenth century, the drain of wealth, or the worsening food security as India’s peasants were forced to grow commercial crops for export so that Britain could balance its trade.
  • Population explosion but the life expectancy increased: The belief that British policy in India caused repeated famines is bolstered by the fact that there has not been a single famine since 1947. This is despite a population explosion following a sharp fall in death rates. The decline in the mortality rate surely signals improved living conditions. The Census shows that in the 1950s, life expectancy at birth of Indians increased by more than it did in the previous seventy years.

Census as a double-edged sword

  • Worsening gender inequality in India after 1947: It points to a worsening gender inequality in India. A simple indicator of this would be the ratio of females to males in the population. It is believed that in the absence of factors that lower the life chances of women, including foeticide, this ratio would tend to one. The Census of India shows that we have not attained that level in our recorded history, except in pockets within the country.
  • Trend in gender inequality: While this is disturbing in itself what is more so is that this ratio has steadily declined after 1947. After declining for four decades from 1951 it started inching up in 1991. But in 2011, it was yet lower than what it was in 1951.
  • Life expectancy faster for man than women: So, even though life expectancy increased soon after Independence, in the early years at least it increased faster for men than it did for women.

Conclusion

  • The Census of India not only helps understand the perils of British rule, but also flags the roadblocks lying ahead. As India chants Vasudhaiva Kutumbakam at the G-20, implying that the nations of the world are a family, it behooves us to ensure that all the persons in our own family enjoy the same freedoms.

Mains Question

Q. According to the census of the time discuss the impact of colonial rule in India. The Census of India not only helps understand the perils of British rule, but also flags the roadblocks lying ahead. Discuss.

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Foreign Policy Watch: India-China

India-China clash: Why China has opened new front?

Note4Students

From UPSC perspective, the following things are important :

Prelims level: India china border areas

Mains level: Chinese Transgression, India's preparedness and challenges

China

Context

  • There has been yet another transgression by Chinese troops across the Line of Actual Control (LAC) between India and China. That it culminated in violence, that it took place this time in the Eastern Sector of their boundary dispute, or that it should take place in the middle of winter should surprise no one. If there is one lesson that can be drawn from India’s experiences with Chinese transgressions over the last decade or so, it is that the Chinese seem to set the pace on the nature and timing of these transgressions.

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Army’s statement about the clash

  • On December 9, 2022, People’s Liberation Army (PLA) troops contacted the LAC in the Tawang sector, which was contested by own troops in a firm and resolute manner.
  • This face-off led to minor injuries to a few personnel from both sides,” “Both sides immediately disengaged from the area.”

China

Events of Chinese transgressions: Need to understand the nature and timing

  • Depsang in Ladakh, 2013: Chinese troops came across the LAC, pitched tents and refused to move for several weeks until New Delhi threatened to cancel the planned visit of Premier Li Keqiang to India. This might have been a diplomatic victory for the Indian government but it also highlighted the inability of the Indian military to bring an end to the standoff or the unwillingness of the government to let the military take the lead in responding.
  • Chumar in Ladakh, Sept, 2014 in the middle of the Xi Jinping’s first visit to India: Chinese intruded at Chumar, also in Ladakh, in the middle of Chinese President Xi Jinping’s first state visit to India. This was in keeping with a reasonably long tradition of Chinese transgressions during important visits but it was also notable for confronting Indian troops in an area where they enjoyed a degree of military advantage.
  • Doklam in 2017: China provoked India with infrastructure development in a third country in Bhutan’s Doklam territory. This was a case of China trying to browbeat an Indian treaty ally.
  • Transgression across multiple locations in 2020 and Galwan valley clash: The Chinese PLA took advantage of Covid-19 and a lack of Indian military alertness to transgress across multiple locations on the LAC in eastern Ladakh. On June 15, 2020 episode when 20 Indian soldiers were killed and several others were injured in violent clashes with the PLA troops in Ladakh’s Galwan Valley.

Why China has opened new front in Tawang?

  • Status quo along the boundary are no longer going to be limited to the Western Sector: China has traditionally been active in areas close to Ladakh given the significance of the Xinjiang-Tibet region in its domestic narrative. However, with its sights on an ageing Dalai Lama, and the issue of his succession, Beijing will want to bring into focus its claims on Tawang, and the rest of Arunachal Pradesh.
  • Huge investment in infrastructure in eastern sector: China has invested in infrastructure in the Eastern Sector over many years. This includes rail, road, and air connectivity, better telecommunications, as well as improved capacity to station and supply troops and artillery.
  • Centrality of the boundary issue in the India-China relationship: External Affairs Minister S Jaishankar has repeatedly asserted that it is no longer possible to separate the boundary question from the overall relationship and that peace and tranquillity on the LAC is the key to restoring relations. However, China is likely to keep up the pressure on the ground along the LAC, even as they continue to suggest that the two countries look beyond the differences, much like Chinese Foreign Minister Wang Yi’s comments during his March 2022 visit when he claimed that the two sides need to “inject more positive energy” into the relationship.

China

India’s preparedness and learnings from the incident

  • Indian Army anticipated such kind of transgression in eastern sector: The Indian Army had for long anticipated that the PLA would activate the eastern sector of the LAC, and to that extent, it is evident that steps were taken to beef up military preparedness in the region.
  • Light on what gaps to address: What the incident has effectively achieved though is the lighting up of one more section of the LAC at a time the issues in Ladakh have not yet been settled, from the point of view of India.
  • China appears not want to disengage: After 16 rounds of talks, a disengagement has taken place in eastern Ladakh, but it has not restored the status quo that prevailed in April 2020. China, for its part, appears reluctant to hold any further rounds of talks on the leftover problems in Ladakh, including its play in Depsang and Demchok areas.
  • China is only increasing the economic gap between itself and India: China has only increased the economic gap between itself and India and in the intervening years, not only built up more infrastructure in its border provinces but also tried to integrate these regions much more closely with neighbouring economies such as Pakistan and Nepal through grand projects such as the Belt and Road Initiative and pressuring Thimphu to open formal diplomatic ties with Beijing.

Way ahead

  • India’s relationship with China has been teetering from bad to worse over the last 32 months since the standoff in Ladakh began, and it seems unlikely to improve unless Beijing’s calculus vis a vis India and the region undergoes a drastic change.
  • While Delhi’s G20 leadership may bring opportunities for engagement with Beijing, what is required first is a clear vision and a grand strategy to deal with the China challenge, instead of reacting to each crisis as it emerges.

China

Conclusion

  • With its sights on an ageing Dalai Lama, and the issue of his succession, Beijing will want to bring into focus its claims on Arunachal Pradesh. The border stand-off seems to have been managed for now, but Delhi needs a clear vision, grand strategy to deal with China instead of reacting to each crisis as it emerges.

Mains question

Q. There has been yet another transgression by Chinese troops across the Line of Actual Control (LAC) between India and China. Why China has opened new front in eastern sector? Discuss.

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Wildlife Conservation Efforts

Wildlife (Protection) Amendment Bill and the Forests rights

Note4Students

From UPSC perspective, the following things are important :

Prelims level: WPA, FRA, CITES, etc.

Mains level: Issues with wildlife conservation , forests rights and criminalization laws

Wildlife

Context

  • Rajya Sabha passed the Wildlife (Protection) Amendment Bill, 2021. The Lok Sabha had passed the Bill in the Monsoon Session. While aspects of protecting species against wildlife trade in line with international standards have scrutinised by civil society, MPs and the Parliamentary Standing Committee, the impact of the criminal legal framework fostered by the Wildlife Protection Act (WPA) is less known.

Wildlife

Wildlife (Protection) Amendment Bill, 2022

  • The latest amendment invests in this conception of protected areas and species by adding to the list of protected species and augmenting the penal repercussions.
  • The Bill amends the Wild Life (Protection) Act, 1972 by increasing the species protected under the law.
  • There are 50 amendments to the Act proposed in the Bill.
  • Substituting the definition of ‘Tiger and other Endangered Species’ to ‘Wild Life’, this Bill includes flora, fauna and aqua under its protection.
  • The Bill also regulates wild life trade as per the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES).

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Criminal laws and wildlife conservation in latest amendment

  • Criminal laws remain unchallenged: The need for criminal laws to assist wildlife conservation has remained unchallenged since its conception.
  • Human- animal conflict not interpreted correctly: From regulated hunting to complete prohibition and the creation of ‘Protected Areas (PA)’ where conservation can be undertaken without the interference of local forest-dwelling communities, State and Forest Department control over forests and the casteist underpinnings of conservation would not have been possible without criminal law. In this context, pitting wildlife species against communities as human-animal conflict has eluded the true cost of criminalisation under the WPA.
  • Questionable WPA’s policing framework: The recent move to increase penalties by four times for general violations (from ₹25,000 to ₹1,00,000) and from ₹10,000 to ₹25,000 for animals receiving the most protection should raise questions about the nature of policing that the WPA engenders.

Wildlife

Study by the Criminal Justice and Police Accountability Project (CPA Project) in Madhya Pradesh

  • Records found says forest dwellers are majority of accused in wildlife related crimes: found that persons from oppressed caste communities such as Scheduled Tribes and other forest-dwelling communities form the majority of accused persons in wildlife-related crimes.
  • Found that forest department use threat of criminalisation for cooperation: The Forest Department was found to use the threat of criminalisation to force cooperation, apart from devising a system of using community members as informants and drawing on their loyalty by employing them on a daily wage basis.
  • Cases filed not only for serious crimes: Cases that were filed under the WPA did not pertain solely to the comparatively serious offence of hunting; collecting wood, honey, and even mushrooms formed the bulk of prosecution in PAs.
  • Cases files are still pending: Over 95% of the cases filed by the Forest Department are still pending.
  • Most cases filed were for hunting were lesser protected animals: Hunting offences that were primarily filed against Schedule III and IV animals (wild boars) which have lesser protection than tigers and elephants formed over 17.47% of the animals ‘hunted’ between 2016-20. Among the animals hunted the highest, only one in top five belonged to Schedule I (peacock). Surprisingly, fish (only certain species relegated to Schedule I) formed over 8% of the cases filed. A whopping 133 cases pertaining to fishing (incorrectly classified as Schedule V species) were filed in the last decade in Madhya Pradesh.
  • Making FRA subservient to the WPA: Forest rights, individual and collective, as part of the Forest Rights Act (FRA) were put in place to correct the injustice meted out by forest governance laws. These rights recognised forest-dependent livelihoods. But in inviolate PAs, making the FRA subservient to the WPA, thereby impeding its implementation.

Wildlife

What is forest rights Act, 2006?

  • Recognizing rights of forest dwelling communities: The Forest Rights Act (FRA), 2006 recognizes the rights of the forest dwelling tribal communities and other traditional forest dwellers to forest resources, on which these communities were dependent for a variety of needs, including livelihood, habitation and other socio-cultural needs.
  • Aim to balance rights and protect: It aimed to protect the marginalised socio-economic class of citizens and balance the right to environment with their right to life and livelihood.
  • Individual rights: The Act encompasses Rights of Self-cultivation and Habitation which are usually regarded as Individual rights.
  • Community forest rights: Community Rights as Grazing, Fishing and access to Water bodies in forests, Habitat Rights for PVTGs, Traditional Seasonal Resource access of Nomadic and Pastoral community, access to biodiversity, community right to intellectual property and traditional knowledge, recognition of traditional customary rights and right to protect, regenerate or conserve or manage any community forest resource for sustainable use.

Conclusion

  • Criminal cases filed by the department are rarely compounded since they are meant to create a ‘deterrent effect’ by instilling fear in communities. Fear is a crucial way in which the department mediates governance in protected areas, and its officials are rarely checked for their power. Unchecked discretionary policing allowed by the WPA and other forest legislations have stunted the emancipatory potential of the FRA. Any further amendments must take stock of wrongful cases (as in the case of fishing) and resultant criminalization of rights and lives of forest dwelling communities.

Mains question

Q. Briefly explain the Wildlife (Protection) Amendment Bill, 2022. Illustrate with an example how criminal laws and wildlife conservation are working under the Wildlife Protection Act and Forest Rights Act.

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

Urban-rural manufacturing shift: A mixed bag

Note4Students

From UPSC perspective, the following things are important :

Prelims level: NA

Mains level: Urban rural manufacturing shift, advantages and challenges

manufacturing

Context

  • There is growing evidence to suggest that the most conspicuous trend in the manufacturing sector in India has been a shift of manufacturing activity and employment from bigger cities to smaller towns and rural areas. This ‘urban-rural manufacturing shift’ has often been interpreted as a mixed bag, as it has its share of advantages that could transform the rural economy, as well as a set of constraints, which could hamper higher growth.

Recent data by Annual Survey of Industries for 2019-20

  • In terms of capital: The rural segment is a significant contributor to the manufacturing sector’s output. While 42% of factories are in rural areas, 62% of fixed capital is in the rural side.
  • In terms of value addition: In terms of output and value addition, rural factories contributed to exactly half of the total sector.
  • In terms of employment: In terms of employment, it accounted for 44%, but had only a 41% share in the total wages of the sector.

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Why is this shift of manufacturing away from urban locations to rural?

  • A report on manufacturing shift brought out by World Bank: The movement of manufacturing away from urban locations was brought out by the Work Bank in a report a decade ago, “Is India’s Manufacturing Sector Moving Away from Cities? Policy Research Working Paper, World Bank).
  • Higher urban-rural cost caused this shift: This study investigated the urbanisation of the Indian manufacturing sector by “combining enterprise data from formal and informal sectors and found that manufacturing plants in the formal sector are moving away from urban areas and into rural locations, while the informal sector is moving from rural to urban locations”. Their results suggested that higher urban-rural cost ratios caused this shift.
  • Steady investment in rural areas: This is the result of a steady stream of investments in rural locations over the last two decades.
  • Input costs are relatively less in rural area: Rural areas have generally been more attractive to manufacturing firms because wages, property, and land costs are all lower than in most metropolitan areas.
  • Factory floorspace supply constraints: When locations get more urbanised and congested, the greater these space constraints are.
  • Increased capital intensity of production: The driving force behind such a shift is the continuing displacement of labour by machinery as a result of the continuous capital investments in new production technologies. In cities, factories just cannot be expanded as opposed to rural areas.

How this trend is a welcome sign?

  • Fulfilling the need of balanced development: Given the size of the Indian economy and the need for balanced regional development, the dispersal of manufacturing activities is a welcome sign.
  • Created an opportunity for small scale industries to survive after liberalization: In the aftermath of trade liberalisation, import competition intensified for many Indian manufacturers, forcing them to look for cheaper methods and locations of production. One way to cut costs was to move some operations from cities to smaller towns, where labour costs are cheaper.
  • Source of livelihood diversification in rural area: The shift in manufacturing activities from urban to rural areas has helped maintain the importance of manufacturing as a source of livelihood diversification in rural India.
  • Make up for loss of employment: This trend helped to make up for the loss of employment in some traditional rural industries. The growth of rural manufacturing, by generating new jobs, thus provides an economic base for the transition out of agriculture

What are the challenges ahead and a solution to it?

  • While the input cost is less but the cost of capital is high, offsetting the benefits: Though firms reap the benefits of lower costs via lower rents, the cost of capital seems to be higher for firms operating on the rural side. This is evident from the shares in rent and interest paid. The rural segment accounted for only 35% of the total rent paid, while it had 60% of the total interest payments. The benefits reaped from one source seem to be offset by the increased costs on the other front.
  • Skill shortages in rural area: There exists an issue of “skills shortage” in rural areas as manufacturing now needs higher skilled workers to compete in the highly technological global ‘new economy’. Manufacturers who need higher skilled labour find that rural areas cannot supply it in adequate quantities. Manufacturers who depend only on low-wage workers simply cannot sustain their competitive edge for longer periods as this cost advantage vanishes over time.
  • Solution to this issue lies in skill development: This suggests the need for clear solutions to the problems of rural manufacturing and the most important is the provision of more education and skilling for rural workers. A more educated and skilled rural workforce will establish rural areas’ comparative advantage of low wages, higher reliability and productivity and hasten the process of the movement out of agriculture to higher-earning livelihoods

Conclusion

  • Given the size of the Indian economy and the need for balanced regional development, the dispersal of manufacturing activities is a welcome sign. However, the compulsions of global competition often extend beyond the considerations of low-wage production and depend on the virtues of ‘conducive ecosystems’ for firms to grow.

Mains Question

Q. There is growing evidence to suggest that the trend in the manufacturing sector in India has been a shift of manufacturing activity and employment from bigger cities to smaller towns and rural areas. Discuss the reasons for this trend and note down the challenges ahead.

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Trade Sector Updates – Falling Exports, TIES, MEIS, Foreign Trade Policy, etc.

India-UK Free Trade Agreement (FTA) is good for both countries

Note4Students

From UPSC perspective, the following things are important :

Prelims level: NA

Mains level: India: UK FTA and advantages for India

UK

Context

  • The ties between India and the UK are often described as a Living Bridge, a dynamic economic force of people, businesses and ideas. As Prime Minister Narendra Modi drives forward plans to make India a developed nation within the next 25 years and the UK forges deeper trade relationships around the globe, our connections are growing stronger every day.

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Background: How India-UK trade relationship taking shape in recent time?

  • Enhanced trade relationship: India and the UK are two of the largest economies on the planet. Economic relationship between the two is reaching new heights with an enhanced trade partnership.
  • Minimised trade barriers: Both have lowered several trade barriers, pledged to bring down many more and set an ambitious target to double the value of India-UK trade by 2030.
  • Opening up opportunities in UK: Since then, Indian firms, including established businesses and recent startups, have been finding opportunities in the UK.
  • Business and investment in India: British businesses in fields ranging from food to financial services are expanding and investing in India. The car manufacturer, McLaren, which has just opened a showroom in Mumbai, is one example.
  • FTA’s beneficial for future and mutual growth: An India-UK free trade agreement is a natural next step for both, bringing two nations with extraordinary plans for their futures closer still.

UK

What are Free trade agreements (FTA)?

  • Free trade agreements are agreements between the two or more countries or trading blocks that primarily agrees to eliminate or reduce customer tariff and non-tariff barriers on substantial trade between them.

Importance of Free Trade Agreements

  • FTA include multiple trade aspects: FTAs cover a wide array of topics such as tariff reduction impacting the entire manufacturing and the agricultural sector; rules on services trade; digital issues such as data localization; intellectual property rights that may have an impact on the accessibility of drugs; and investment promotion, facilitation, and protection.
  • Great impact on economy and society: Consequently, an FTA has a far-reaching impact on the economy and society. Given this, one legitimately expects transparency and greater scrutiny of the FTA process both during and after the negotiations.

UK

How a Free trade agreement with UK will benefit India?

  • Greater market access works both ways: Prime Minister Modi has urged Indian businesses to export their products to the world with “zero-effect, zero-defect”. In other words, high-quality goods with no environmental impact. A free trade agreement between our nations could further help achieve this target. It would help Indian firms to sell to a market that imported almost £820 billion of goods and services from around the world in the last 12 months on record.
  • UK will aid in the ongoing India’s economic progress: The Indian economy’s future is an exciting one, with the prospect of new technologies, growing businesses and better jobs for its citizens. The UK has the skills and experience to aid this progress. A deal that’s right for both could make it cheaper and easier for ambitious Indian businesses to tap into this expertise. It is also only right that the millions of SMEs that power India’s economy benefit from a deal.
  • Investment in one another’s economy will multiply the opportunities: The British cybersecurity solutions firm, Telesoft Technologies, has just said it will pump £10 million into its India subsidiary over the next five years supporting a growing telecoms sector. A free trade agreement that smooths British and Indian firms’ path to invest in one another’s economy would mean such opportunities multiply.
  • FTA can be a force of primary economic growth in uncertain times: A free trade agreement’s value cannot be measured entirely in rupees and pounds. Covid-19’s impact on supply chains, slow global economic growth and volatile markets mean we are living in uncertain times, where free trade could be the primary force of prosperity throughout history. It will help to build the long-term security that people around the world need right now.

UK

Conclusion

  • In the economic uncertainty, free trade can be considered as answer to building the long-term security that people around the world need right now. In this, the year of its 75th anniversary since Independence and its G20 Presidency, India is on a path to a new economic future. It would be great to have UK alongside on this journey, as we together can use trade to benefit our citizens and the world.

Mains question

Q. Trade between India and UK is on upward trend. Free trade agreement between the two will surely benefit both the countries. How India can take advantage of the FTA between the two?

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e-Commerce: The New Boom

Regulating the Big Techs and competition in the market

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Competition Commission of India

Mains level: Issues of big techs market dominance, use, store and transfer consumer data

competition

Context

  • The Indian anti-trust body, the Competition Commission of India (CCI)’s move, in October, to impose a penalty of ₹1,337.76 crore on Google for abusing its dominant position in the android mobile device ecosystem, has forced us, once again, to rethink the market power of Big Tech companies.

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Background: Acknowledging the big tech company’s market distorting abilities

  • India did not account for network effect of big techs: When India established the CCI under the Indian Competition Act 2002, it was to protect and promote competition in markets, and prevent practices that hinder competition. However, it did not account for the network effect of Big Tech companies as a force to reckon with.
  • Countries are realised their market dominance and moved to transform competition law: As their market dominance increased rather exponentially, the European Union, the United States, and even Australia realised their market-distorting abilities and moved to transform their competition law.
  • For instance, European union’s Digital market Act: The EU’s Digital Market Act and “gatekeepers” who will enforce rules and regulations ex-ante to foresee anti-competitive practices is an example.

Competition Commission of India

  • CCI is the competition regulator in India.
  • It is a statutory body responsible for enforcing The Competition Act, 2002 and promoting competition throughout India and preventing activities that have an appreciable adverse effect on competition in India.
  • It was established on 14 October 2003. It became fully functional in May 2009.

competition

Big techs and the Market dominance issue

  • Market dominance is natural but gets hazy when its abused: In any free economy, market dominance is natural but things get hazy when it is abused to prevent competition.
  • Google’s case: As the CCI says, the intent of Google’s business was to make users on its platforms abide by its revenue-earning service, i.e., an online search to directly affect the sale of their online advertising services. Thus, network effects, along with a status quo bias, created significant entry barriers for competitors to enter or operate in the markets concerned.
  • Fundamental role of pricing and as a determinant of competition: Predatory pricing entails the lowering of prices that forces other firms to be out competed. Amazon and Flipkart were accused of deep discounting and creating in-house brands to compete with local sellers. Only recently, the CCI raided their offices in an anti-competition probe, leading to Amazon being forced to cut its ties with Cloudtail.
  • Consumers consent has no value: A crucial aspect of self-preferencing beyond the search algorithms is the bundling of services, especially with pre-installed apps, where the manufacturers eliminate competition without the consumer’s consent. Apple is facing heat in the U.S. and Europe over pre-installed apps after Russia forced Apple to provide third-party apps at the time of installation.

competition

Use of data, issue of consumer protection

  • Big techs self-asserted right to use, store and transfer consumers data: While the data economy has evolved, we have not dealt with its regulation as effectively. There is sensitive data stored on these platforms (financial records, phone location, and medical history). Big corporations have asserted ownership of the right to use or transfer this data without restriction.
  • Data greed as a motivation: While one might attribute it to efficiency barriers, the greed for data is a motivation. Further, the storage and collection of women’s and children’s data need to be dealt with more cautiously to build a safe digital place.
  • Market distortions lead to data monopoly and poor quality of services: Market distortion can also lead to poorer quality of services, data monopoly, and stifle innovation.

Steps to ensure a level playing field and consumer protection in the age of digital transformation?

  • Urgent to need to prevent market failures and mitigate possible anti-competitive act: While the competition laws address that anomaly, they are too slow to respond in complex technical sectors. By the time an order is passed, the dominant player has gained an edge — as in the case of Google. Thus, in this context, there is an urgent need for ex-ante legislation to prevent market failures and mitigate possible anti-competitive conduct.
  • Harmony of the competition law and e-commerce rule: For a consumer, there is a need to establish harmony of the Competition law with the new Consumer Protection Act 2020 and e-commerce rules. The new law should include a mechanism to ensure fair compensation for consumers who face the brunt of the anti-competitive practices of the Big Techs. This should ensure that the penalties and restrictions being imposed on companies also ensure proportionate compensation for consumer losses.
  • Ensure a level playing field for local sellers: Pricing plays a fundamental role in defining the position of any digital platform in the marketplace. It is essential to establish an ex-ante framework to ensure a level playing field for local sellers. The Government’s Open Network for Digital Commerce (ONDC) platform is a reliable option for these small players.
  • New laws and provisions for digital marketplace: There is an urgent need to contextualise the law to the digital marketplace and devise new provisions with adequate ex-ante legislation. The EU has already noted this need through the Digital Markets Act. It is time that similar legislation is adopted in India.

competition

Prelims shot: What is “ONDC”?

  • Open Network for Digital Commerce (ONDC) seeks to promote open networks, which are developed using the open-source methodology.
  • The project is aimed at curbing “digital monopolies”.
  • This is a step in the direction of making e-commerce processes open-source, thus creating a platform that can be utilized by all online retailers.
  • They will encourage the usage of standardized open specifications and open network protocols, which are not dependent on any particular platform or customized one.

Conclusion

  • Witnessing the big tech’s ability of market distortion, data monopoly and market dominance, Country’s competition laws need to be vigilant through an ex-ante framework to ensure highest consumer protection. With India now on the cusp of a digital transformation, it is essential that the country a level-playing field to ensure a fair opportunity for new-age start-ups and Micro, Small and Medium Enterprises.

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Health Sector – UHC, National Health Policy, Family Planning, Health Insurance, etc.

Curbing individualism in public health

Note4Students

From UPSC perspective, the following things are important :

Prelims level: NA

Mains level: Issues in public health management

public

Context

  • A failure to examine and interpret public health problems from a population perspective is leading to ineffective and unsustainable solutions as far as complex public health problems are concerned. There is a strong tendency in public health to prioritise individual-oriented interventions over societal oriented population-based approaches, also known as individualism in public health.

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What are the problems in public health approach?

  • Micronutrient supplementation at Individualistic level instead sustainable approach at public level: Problems such as undernutrition, for which individualist solutions such as micronutrient supplementation and food fortification have been proposed as solutions in lieu of sustainable approaches such as a strengthening of the Public Distribution System, supplementary nutrition programmes, and the health services.
  • Diagnosis and treatment than the solutions that modify health behaviours: Similar is the case with chronic disease control, wherein early diagnosis and treatment is the most popular solution, with little scope for solutions that can modify health behaviours (through organised community action).

Recent evidences that show individualism is preferred over population-based approach

  1. Pradhan Mantri Jan Arogya Yojana (PMJAY): A nationwide publicly-funded insurance scheme, the Pradhan Mantri Jan Arogya Yojana (PMJAY) falls under Ayushman Bharat. It is the largest health insurance scheme in the country covering hospitalisation expenses for a family for ₹5 lakh a year. The goal is to ensure ‘free’ curative care services for all kinds of hospitalisation services so that there is no financial burden to the beneficiary.
  • Approach needed: What is not talked about in the entire scheme is the need for hospitalisation services per year for any population.
  • Approach preferred: Instead, every individual is given an assurance that if there is a need for hospitalisation expenses, the scheme will cover the expenses, highlighting the risk/probability of every individual facing hospitalisation in a year.
  • Individualistic response: This is an individualistic response to the problem of hospitalisation expenditure faced by populations. This becomes obvious when one examines the data on annual hospitalisation across populations.
  1. vaccination for COVID-19 unlike other vaccinations: It was evident that a COVID-19 vaccine cannot prevent people from getting the disease but only reduce hospitalisation and deaths in the event of contracting COVID-19.
  • Approach needed: To effectively manage COVID-19, what was needed was to have primary, secondary, and tertiary health-care facilities to manage the above proportion of cases. This is what a population-based approach to epidemic would be focusing on.
  • Approach preferred: Instead, by focusing on a vaccination programme for the entire population, it is again an assurance and a promise to every individual that even if you get COVID-19, you will not need hospitalisation and not die. Even after the entire crisis, not much is talked about in terms of the grossly inadequate health-care infrastructure to ensure the necessary primary, secondary and tertiary care services for COVID-19 patients, in turn leading to many casualties.
  • Individualistic response: The entire focus has been on the success story that every individual is protected from hospitalisation and death achieved through vaccine coverage. Most of the deaths due to COVID-19 are a reflection of the failure to offer ventilator and ICU support services to the 1%-2% in desperate need of it. Curative care provisioning is never planned at an individual level as epidemiologically, every individual will not necessarily need curative care every time. The morbidity profile of a population across age groups is an important criterion used to plan the curative care needs of a population.

What the data on population hospitalization suggests?

  • Episode of hospitalization a year: Data from the National Sample Survey Organisation (75th round) show that on an average, only 3% of the total population in India had an episode of hospitalisation in a year (from 1% for Assam to 4% for Goa and 10% for Kerala the need also a function of availability). The proportion hovers around 3%-5% across most Indian States.
  • Population based healthcare planning is necessary: This is population-based health-care planning. Instead, giving an assurance to every individual without ensuring the necessary health-care services to the population is not really helping in a crisis.

Determinants of individualistic approach

  • Misconception in philosophy of public health: The dominance of biomedical knowledge and philosophy in the field of public health with a misconception that what is done at an individual level, when done at a population level, becomes public health. This is despite the contrasting philosophy and approaches of clinical medicine and public health and the evidence that support the latter and must be based on population characteristics and economic resources.
  • Visibility impact and mistake of judging a population’s characteristics: Health effects are more visible and appear convincing at the individual level, wherein improvements at the population level will be clear only after population-level analysis; this needs a certain level of expertise and orientation about society an important skill required for public health practitioners.
  • Market’s role and the effect of consumerism in public health practice: The beneficiaries for a programme become the maximum when 100% of the population is targeted. Instead of making efforts to supply evidence of the actual prevalence of public health problems, market forces would prefer to cast a wide net and cover 100% of beneficiaries. Propagating individualism has always been a characteristic feature of a consumerist society as every individual can then be a potential ‘customer’ in the face of risk and susceptibility.

public

Conclusion

  • The need of the hour is population-level planning, which means, population as a single unit needs to be considered. All forms of individualistic approaches in public health need to be resisted to safeguard its original principles of practice, viz. population, prevention, and social justice.

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Karnataka-Maharashtra border Dispute: Is it just a political tool?

Note4Students

From UPSC perspective, the following things are important :

Prelims level: provisions and powers related to State formation or alteration of state boundaries

Mains level: Inter-state boundary disputes

border

Context

  • The eruption of strong language chauvinism on the border of Karnataka and Maharashtra is neither sudden nor primarily linguistic. The number of speakers of both of Marathi and Kannada languages has been overwhelmingly large. If it is not language, is it the sudden memory of a badly mangled territorial border that has irked people?

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What is the dispute in short?

  • A petition filed by the Maharashtra government, challenging some provisions of the State Reorganisation Act, 1956 and demanding 865 villages from five districts of Karnataka. The five districts are Belagavi, Karwar, Vijayapura, Kalaburagi and Bidar.,
  • In Karnataka, tensions are high, especially in Belagavi district, which borders Maharashtra

border

When did the dispute begin?

  • Since the State Reorganisation Act passed in 1956: Maharashtra and Karnataka have sparred over the inclusion of some towns and villages along the state border ever since the State Reorganisation Act was passed by the Parliament in 1956. The Act was based on the findings of the Justice Fazal Ali Commission, which was appointed in 1953 and submitted its report two years later.
  • Erstwhile Mysore renamed and formed State of Karnataka and the differences erupted: On November 1, 1956, Mysore state later renamed Karnataka was formed, and differences between the state and the neighbouring Bombay state later Maharashtra erupted.
  • View of Maharashtra: Maharashtra was of the view that the northwestern district of Karnataka, Belagavi, should be part of the state, leading to a decade-long violent agitation and formation of Maharashtra Ekikaran Samithi (MES), which still holds sway in parts of the district and the eponymous city

border

What was the Centre’s response?

  • Union government ste up a Commission in 1966: Amid protests and pressure from Maharashtra, the Union government set up a commission under retired Supreme Court judge Justice Meharchand Mahajan on October 25, 1966. S Nijalingappa was the karnataka Chief minister then and VP Nayak was his Maharashtra counterpart.
  • Report come up with a settlement on merging of towns and villages: The report was expected to be a binding document for both states and put an end to the dispute. The commission submitted its report in August 1967, where it recommended merging 264 towns and villages of Karnataka (including Nippani, Nandgad and Khanapur) with Maharashtra, and 247 villages of Maharashtra (including South Solapur and Akkalkot) with Karnataka.
  • Report tabled in 1970 but no implementation took place as it became a poll issue: Though the report was tabled in 1970 in the Parliament, it was not taken up for discussion. Without the implementation of the recommendations, demands of Marathi-speaking regions to be part of Maharashtra and Kannada-speaking regions to be part of Karnataka continued to grow. MES made it a poll issue in many parts of Belagavi and won successive elections from constituencies in the district.

Bilingualism: an essential element of the culture of the area

  • Extended families on both sides: The castes and communities on both sides of the disputed border have their extended families spread on either side of it.
  • Harmonious Cultural exchange: All of the harmoniums and sitars played by the greatest among Karnataka’s singers have been made in Maharashtra’s Miraj town for the last 120 years.
  • Influence of Bhakti movement on one another: In the past, the bhajans of Tukaram have made their way into the hearts of the Kannada speakers with as much ease as did the vachanas of Basaveshwar’s saint-followers into the minds of Marathi speakers.
  • Influence of one another’s language: Thousands of Marathi words are of Kannada origin and a similar number of words in Kannada have assimilated the Indo-Aryan roots through Marathi.

Critique: Dispute is more of a political tool

  • Dispute is visible but not in the essence: The dispute is in the name of language, but it is not linguistic in essence. It is in the name of a border, but it is not territorial in essence.
  • The dispute is becoming more of a political demand: People know that the area will see disturbance when politicians want to unleash it. Appealing to language chauvinism acquires an instrumentalist-political demand.
  • Diverting the discontent: The truth is, neither the language nor the people along the state border are an issue for them, as they should be. What matters to the political war-lords is to find a way of diverting the discontent, no matter what harm it brings to the harmony of communities in the area.

Conclusion

  • Almost two decades after the petition, its maintainability remains challenged. Karnataka has resorted to Article 3 of the Indian Constitution to argue that the Supreme Court does not have the jurisdiction to decide the borders of states, and only Parliament has the power to do so. Maharashtra has referred to Article 131 of the Constitution, which says that the Supreme Court has jurisdiction in cases related to disputes between the Union government and states.

Mains Question

Q. There seems the cultural, traditional and lingual exchange in the border areas of the states in India. Despite of the cultural amity, disputes resurface time ang again. Discuss with a case of Maharashtra Karnataka border dispute.

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Modern Indian History-Events and Personalities

Is it Jawaharlal Nehru’s fault?

Note4Students

From UPSC perspective, the following things are important :

Prelims level: NA

Mains level: Integration of Princely states

Nehru

Context

  • Jawaharlal Nehru has recently come under criticism for declining to accept the Kashmir Maharaja’s initial offer to accede to India in September 1947, several weeks before the tribal invasion. Even great statesmen make occasional mistakes and Nehru was no exception. However, a careful examination of the historical background shows that Prime Minister Nehru cannot be faulted in this case.

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Background: Jammu and Kashmir’s Maharaja Hari Singh and his stand on accession

  • Stand against accession with either India or Pakistan: Maharaja Hari Singh of Jammu and Kashmir was one of the few princely rulers who had held out against accession to either India and Pakistan before the partition of British India.
  • Lord Mountbatten visit and assurance: a couple of months prior to the partition, the Viceroy, Lord Mountbatten, visited Srinagar in an attempt to persuade the Maharaja to opt for one or the other of the two states, offering him an assurance from Sardar Patel that India would raise no objection if the ruler were to opt for Pakistan.
  • Maharaja evaded discussion and hopes for an independent state: The Maharaja entertained his guest in regal style but evaded any discussion on the political issue, pleading a stomach ailment. Hari Singh evidently hoped that, with the lapse of British paramountcy, he would become the ruler of an independent and sovereign state.

How Maharaja’s hope of a sovereign state got dashed?

  • Uprising assisted by Pakistan: An uprising in Poonch assisted by Pakistani elements.
  • Economic sanctions by Pakistan: an undeclared economic embargo imposed by the Pakistani authorities. Since Kashmir’s main trade exchanges in those days were with Pakistan, the unofficial embargo resulted in great hardship.

How Maharaja revised his position on accession?

  • Decided to talk on terms of accession and a message to Nehru: Maharaja asked Justice Mehr Chand Mahajan, his prime minister-designate, to convey to Nehru the terms on which he was prepared to accede to India.
  • Nehru urging Maharaja to induct Sheikh Abdullah into state government: Nehru had been urging the Maharaja to induct Sheikh Abdullah, the leader of the secular National Conference, into the state government in order to ensure popular support for the administration.
  • Reluctant to have immediate administrative reforms Maharaja refused: The Maharaja was not agreeable to introducing immediate reforms in the administration of the state. The Maharaja indicated that he was not prepared to do so, at least at this stage.
  • Nehru reiterated to associate Abdullah with the governance of the state: When Mahajan conveyed these terms to Nehru in the third week of September, the latter reiterated that Abdullah should be freed from prison and associated with the governance of the state.

Nehru

Why did Nehru insist on bringing Sheikh Abdullah into the administration?

  • He anticipated the armed intervention by Pakistan and armed rebellion: Nehru anticipated armed intervention by Pakistan in Kashmir and foresaw that this could be repulsed only by a government that enjoyed popular support.
  • A letter to Sardar patel before a month before tribal invasion: He set out his views in a letter to Sardar Patel on September 27, 1947, nearly a month before the tribal invasion. This remarkable letter has not received the attention it deserves.
  • Anticipating the demand of the time, he confirmed his way: Nehru, therefore, concluded that the only acceptable course was for the Maharaja to seek the cooperation of Sheikh Abdullah and the National Conference while acceding to India. This was the only effective way of countering Pakistani designs.

Interesting: Nehru’s letter to Sardar Patel a month before tribal invasion assisted by Pakistan

  • “The Muslim League in the Punjab and the NWFP are making preparations to enter Kashmir in considerable numbers. The approach of winter is going to cut off Kashmir from the rest of India,” he wrote. “I understand that the Pakistan strategy is to infiltrate into Kashmir now and to take some major action as soon as Kashmir is more or less isolated because of the coming winter. I rather doubt if the Maharaja and the State forces can meet the situation by themselves without some popular help… Obviously the only major group that can side with them is the National Conference under Sheikh Abdullah’s leadership.”

Nehru

Rest is the story of accession

  • Nehru’s assessment confirmed and Maharaja agreed to his advice: Nehru’s assessment of Pakistan’s plans to invade Kashmir were confirmed within three weeks. It was only at this stage that the Maharaja heeded Nehru’s advice. He inducted Sheikh Abdullah into the government and acceded to India. This had momentous consequences for the defence of Kashmir against the invaders.
  • Resistance against Pakistani invaders: The normal administrative machinery had broken down and responsibility for maintaining law and order had been taken over by National Conference volunteers. Abdullah and his followers organised the popular resistance against the Pakistani invaders.
  • Advance of raiders and then Indian troops were airlifted to assist and protect the state: With the advance of the raiders towards Srinagar, the Maharaja’s administration had virtually collapsed. By the time Indian troops were airlifted to Srinagar on October 27, 1947, the Maharaja had departed to Jammu for safety. The first batches of Indian troops who had been airlifted to Srinagar had arrived without transport vehicles.

Conclusion

  • Far from being a blunder, Jawaharlal Nehru’s insistence on linking accession to the installation of a popular government in Jammu and Kashmir bears testimony to his foresight and statesmanship.

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Fertilizer Sector reforms – NBS, bio-fertilizers, Neem coating, etc.

Why are nitrogenous fertilizers still a first choice of farmers?

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Basics of Fertilizers, applications, effects etc.

Mains level: Reasons and effects of Indiscriminate use of Urea and DAP fertilizers

fertilizers

Context

  • Two ambitious schemes of the Central government such as Soil Health Card and mandatory neem-coating of urea were supposed to promote balanced use of fertilisers. However, far from weaning farmers from urea, annual consumption of this nitrogenous fertiliser has only risen from 30 to 35 million tonnes (mt) in the last five years.

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Rise in the sales of nitrogenous fertilizers

  • Rise in sales of not only urea but also DAP: This year, not only have urea sales gone up by 3.7 per cent during April-October over the same period of 2021, it has grown even more, at 16.9 per cent, for di-ammonium phosphate (DAP).
  • Sales are not in correct proportion: It has come even as sales of all other fertilisers including complexes containing nitrogen (N), phosphorus (P), K (potash) and sulphur (S) in different proportions have fallen.
  • Urea and DAP are the dominant choice of Indian farmers: In other words, instead of balanced use of plant nutrients based on soil testing and specific crop requirement, Indian farmers are effectively applying just urea and DAP both high-analysis fertilisers containing 46 per cent N and P respectively.

Fertilizers

What are the reasons for increasing use of Urea and DAP Fertilizers?

  • The non-urea fertiliser is decontrolled or fixed by the companies: The government has fixed the maximum retail price (MRP) of urea at Rs 5,628 per tonne. The MRPs of other fertilisers are technically decontrolled, but companies have been “told” not to charge more than Rs 27,000/tonne for DAP.
  • Informally fixed prices are higher: The informally-fixed MRPs are higher at Rs 29,000-31,000 and Rs 34,000 per tonne for NPKS complexes and muriate of potash (MOP) respectively, but farmers have little incentive to buy at these prices.
  • DAP is cheaper to apply: Farmers are reluctant to apply complexes such as 10:26:26:0, 12:32:16:0 and 20:20:0:13 when DAP is cheaper and has 46 per cent P as well as 18 per cent N.
  • Price is the primary concern for over micronutrients: The fact that DAP does not contain K, S or other macro and micro nutrients wouldn’t matter to a majority of farmers. For them, choice of fertilisers is primarily a function of prices.
  • Subsidies on individual ferlizers are to be blamed: Underpricing of urea (a historical phenomenon) and DAP (recent) is a product of subsidy-induced market distortions, for which the blame lies squarely with the Government.

Ideal ratio for N:P:K and effects of excessive use

  • Ideal ratio v/s current NPK ratio: The effects of these the current NPK ratio is about 13:5:1, as against the ideal 4:2:1 would ultimately show up in crop yields.
  • Plants will respond poorly: Plants, like humans, will respond poorly to fertilisers if only one or two nutrients are given in excess.
  • Disturbs soil health: Excessive use of chemical fertilizers kills all the microorganisms available in the soil, which are so essential for maintaining soil health

What the government can do?

  • Changing the subsidy policies: The Government should replace subsidies on individual fertiliser products with a flat per-hectare cash transfer, maybe twice a year.
  • E- wallet account for money transfer only to purchase fertilizers: Every farmer can have an e-wallet account into which this money can be credited before the kharif and rabi planting seasons. The e-wallet may be used only for the purchase of fertilisers.
  • Maintaining stock of basic fertilizers: The government can maintain a stock of basic fertilisers, including urea and DAP, to ensure no untoward price rise even in a decontrol scenario.

Fertilizers

Have you heard? “PM PRANAM” scheme

  • In order to reduce the use of chemical fertilisers by incentivising states, the Union government plans a new scheme – PM PRANAM, which stands for PM Promotion of Alternate Nutrients for Agriculture Management Yojana.
  • The proposed scheme intends to reduce the subsidy burden on chemical fertilisers.
  • This burden if uneased, is expected to increase to Rs 2.25 lakh crore in 2022-2023, which is 39% higher than the previous year’s figure of Rs 1.62 lakh crore.
  • The scheme will not have a separate budget and will be financed by the “savings of existing fertiliser subsidy” under schemes run by the Department of fertilisers.

Conclusion

  • The compulsions of electoral politics have clearly trumped concerns over soil nutrient imbalances. Price distortions in fertilisers will not help farming in the long run. Govt can offer acreage-based cash transfers.

Mains Question

Q. Despite government efforts to reduce nitrogenous fertilizers, the annual consumption of these fertilizers is increasing. Discuss the reasons and what government can do more?

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Foreign Policy Watch: India-China

Understanding the principal contradiction, keeping China at the Centre

Note4Students

From UPSC perspective, the following things are important :

Prelims level: NA

Mains level: India's foreign policy

contradiction

Context

  • If principal contradictions must determine strategic priorities, New Delhi should decide what its principal contradiction is. China is contemporary India’s principal strategic contradiction. Every other challenge, be it Pakistan, internal insurgencies, and difficulties in relations with its neighbours, fall in the category of secondary contradictions.

What is principal contradiction?

  • The concept of a principal contradiction is one that poses the most intense challenge to an individual/organisation, and has the power to shape its future choices and consequent outcomes useful method of optimising and prioritising strategic decision-making.

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Principal contradiction with China

  • Straightforward question over the decisions taken by the policymakers: Major decisions in New Delhi’s strategic decision matrix should pass the China test, which amounts to asking and answering a rather straightforward question: “does x or y decision/development/relationship help deal with the China challenge, or not?”
  • China test a tool for policy making: A perspicacious ‘China test’ can help prioritise strategic decision making in the longer run, at least as an analytical tool with potential policy utility.

Elements of ‘China test’

  • From an operational point of view, the ‘China test’ consists of three distinct elements.
  • Assessment of Indian decisions: an assessment of how a certain Indian decision or a specific regional development square with Chinese regional strategy or interests.
  • Assessment if the decisions need Modifications: An assessment of whether India’s decision or a certain regional development would require India to make modifications at the level of secondary contradictions.
  • Assessment if it requires a major policy change: An assessment of whether this would require any major policy changes internally. Let me highlight the utility of the ‘China test’ using a few examples.

contradiction

Analysis of India-U.S. relations applying the China test

  • Relations are more of Interest driven: New Delhi has had a complicated relationship with Washington which is increasingly getting normalised and interests-driven. Despite its withdrawal from the region, Washington is seeking to re-engage southern Asia (Pakistan, South Asia in general, the Indo-Pacific, and perhaps even the Taliban).
  • India’s growing proximity to the U.S: It appears that one of the lessons New Delhi learnt from the standoff with China along the Line of Actual Control in 2020 was that it was perhaps a consequence of India’s growing proximity to the U.S.
  • lack of/lukewarm India-U.S. strategic engagement in the region may help China: Given that Beijing seeks to dominate the region, it is clearly not in its interest to see an American reengagement of the region or growing India-U.S. proximity. If so, the lack of/lukewarm India-U.S. strategic engagement in the region is precisely what would help Beijing’s long-term objectives.

contradiction

Analysis of India-Russia relations applying the China test

  • Relations in the wake of Ukraine war: India-Russia relations in the wake of the Ukraine war are among the most debated bilateral relationships in the world today.
  • Question arises by applying the China test: India-Russia relations in the face of western pressure on India to decouple from Moscow. “Does continuing its relationship with Moscow help New Delhi better deal with the China challenge?”
  • What the U.S. and its allies offer India to condemn Russia: The U.S. and its allies would like India to stop engaging with Moscow and condemn its aggression against Ukraine which India has refused to do so far. In return, there is on offer greater accommodation of Indian interests including perhaps diplomatic and political support against Chinese aggression.
  • The challenge of growing proximity between Moscow and Beijing: There is also the growing proximity between Moscow and Beijing which reduces the robustness of India-Russia relations. So, does the China test require New Delhi to continue to engage with Moscow against all these odds?

contradiction

What could be the consequences If India chooses to accept the US offer and deviate from strong India-Russia ties?

  • Sino-Russian cooperation is likely to strengthen: In the absence of an India-Russia relationship, the extent of Sino-Russian cooperation is likely to strengthen, and India will be cut out of the continental space to its north and west.
  • China may replace India as a Natural beneficiary of energy at discounted price and thereby support to Pakistan: New Delhi continues to get discounted energy, cheaper defence equipment If India decides to break away from Russia, many of these could come to a grinding halt, and the natural beneficiary of such an eventuality will, undoubtedly, be China. This could also push Moscow towards Pakistan with or without some nudging from Beijing.
  • India a trusted partner for Russia: It is also important to note that Moscow is not keen to have China dominate the strategic space around it and has been keen to balance the growing influence of China in Central Asia with partners such as New Delhi. New Delhi’s turn away from Moscow will ensure that China gets a free hand in Central Asia too. In one sense, therefore, the China piece best explains the enigma called India-Russia relations.

What the China test suggests?

  • Avoiding the short-term temptation and look a bigger picture: New Delhi should not give into the short-term temptation of not being on the wrong side of China given its long-term implications. While the fears of such a relationship irking China may not be entirely unjustified, they invariably play into the Chinese strategy of boxing India in the region.
  • Break away from Russia may likely to play in Chinese strategy for Boxing India: If indeed New Delhi was to completely break away from Russia (as India’s U.S. and western partners have asked India to), Such a decision is most likely to play into China’s hands. India-Russia relations are on the wane, there is a strong rationale for New Delhi to continue its relationship with Moscow which is China.
  • China test require India to pacify its relationship with Pakistan: The question to ask here is “does making (relative) peace with Pakistan help India better deal with China?”. For China, the best-case scenario is an India vigorously preoccupied with Pakistan which ensures that India is not focused on the growing threat from China, thereby providing Beijing with the opportunity to displace traditional Indian primacy in South Asia. So, for India, a course-correction on Pakistan, even if it is only post facto, is a strategically sensible one.
  • Focus should on China, more than the Pakistan: What India should actively seek is not a balance of power in South Asia with Pakistan but balancing Chinese power in Southern Asia. Hence, India’s objective in South Asia should be to seek a pacification of conflicts with Pakistan, so that it can focus on China.

Conclusion

  • For New Delhi, the message from the China test is a rather straightforward one that the smart balancing China in Southern Asia and beyond must form a key element in India’s grand strategic planning and decision making.

Mains question

Q. What do you understand by the concept of principal contradiction? Explain it shortly keeping China at the Centre of India’s strategic planning and decision making.

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Human Rights Issues

Religious conversion and Fundamental right to freedom of religion

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Fundamental right to freedom of religion

Mains level: Isuues of forced religious conversion and Fundamental right to freedom of religion

religion

Context

  • While hearing a petition seeking a ban on forced conversions, Division Bench judge of the apex court said, “The purpose of charity should not be conversion. Every charity or good work is welcome, but what is required to be considered is the intention,” The observation, loaded with significant implications, is to be considered in the light of the provisions of the Constitution relating to people’s fundamental right to freedom of religion, its legislative history and judicial interpretation.

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Fundamental right to freedom of religion

  • Right to freedom of thought, conscience and religion before the constitution of India: The Universal Declaration of Human Rights 1948, which was before the makers of the future Constitution for independent India had proclaimed: “Everyone has the right to freedom of thought, conscience and religion; this right includes freedom to change his religion or belief, and freedom, either alone or in community with others and in public or private, to manifest his religion or belief in teaching, practice, worship and observance” [Article 18].
  • Extensive debate on religious freedom as a people’s right in the Constituent Assembly: Keeping this in mind, religious freedom as a people’s right was repeatedly debated in the Constituent Assembly. In cognisance of Christianity’s traditions of evangelism and proselytisation, it was to include the right to propagate religion.

religion

Journey of a Right to freedom of religion before and after The Constitution

  • British rulers facilitated conversion to their religion: The British rulers of India, who were never shy of introducing measures to facilitate the conversion of others to their faith.
  • British rulers enacted Native Converts Marriage Dissolution Act in 1866: They had enacted in 1866 a Native Converts Marriage Dissolution Act to provide the facility of divorce to married Indians who converted to Christianity and were thereupon deserted by their non-converting spouses.
  • The Act recently dropped which was once thought to by the law commission of India: After Independence, the Law Commission of India recommended that this Act be revised to make it a general law on the effect of post-marriage change of religion, but the government did not take any action on it. The original Act remained in force till recently but was eventually dropped from the statute book by the Repealing and Amending Act of 2017.
  • Alerted by the missionaries’ princely states enforced anti conversion laws: Alerted by the missionaries’ evangelistic activities, several princely states of the pre-Independence era had enforced anti-conversion laws Raigarh, Udaipur and Bikaner among them.
  • Constitution Bench in case where state freedom of religion Acts was challenged: During 1967-68, state legislatures in Orissa and Madhya Pradesh enacted similar laws, both ostensibly titled as Freedom of Religion Act. Christian leaders lost no time in challenging their constitutional validity in the Supreme Court. Heading a Constitution Bench, Chief Justice of the time AN Ray, argued that converting people interfered with their religious freedom and held that Article 25 granted “not the right to convert another person to one’s own religion but (only) to transmit and spread one’s religion by an exposition of its tenets” .
  • The Constitution Bench decision inspired some other states to enact similar laws: Beginning with the Arunachal Pradesh Freedom of Religion Act 1978. Today there are such laws in about half of our states. Some of these have been either newly enacted or made more stringent, since the beginning of the present political dispensation in 2014. All of them prohibit converting people from one to another religion without their free will and, to indicate this, use various expressions like force, fraud, inducement and allurement.
  • Drafts on the conversion: While the first draft of the future Constitution proposed to restrain conversion except by one’s own free will, the second was to recognise the “right to preach and convert within limits compatible with public order and morality.”
  • Constitution recognised the right to propagate: Eventually, the Constitution recognised the right to propagate, along with freedom of conscience and the right to profess and practice, one’s religion as people’s fundamental right. Prima facie, individuals’ right to forsake their religion by birth and embrace another faith was integral to freedom of conscience
  • Supreme Courts observations regarding the right to propagate: As regards the propagation of religion, in two cases decided in 1954, the apex court observed that Article 25 covered every individual’s right “to propagate his religious views for the edification of others” (RP Gandhi) and that “it is the propagation of belief that is protected, no matter whether the propagation takes place in a church or monastery, or in a temple or parlour meeting” (Shirur Math).

Do you know this interesting news?

  • The Bombay High Court has recently held that the freedom of conscience of a person “includes a right to openly say that he does not believe in any religion”

religion

Mahatma Gandhi’s view on freedom of religion

  • Mahatma Gandhi once said that “all faiths are equally true though equally imperfect”
  • He had pleaded that, instead of converting others to one’s own faith, “our innermost prayer should be that a Hindu should be a better Hindu, a Muslim a better Muslim and a Christian a better Christian” (Young India, 1924).
  • He had also once said: “If I had power and could legislate I should stop all proselytising” (Harijan, 1935).

How is religious freedom protected under the Constitution?

  • Article 25(1) of the Constitution guarantees the “freedom of conscience and the right freely to profess, practise and propagate religion”.
  • It is a right that guarantees a negative liberty — which means that the state shall ensure that there is no interference or obstacle to exercise this freedom.
  • However, like all fundamental rights, the state can restrict the right for grounds of public order, decency, morality, health and other state interests.

Conclusion

  • An observation made by the Supreme Court on “forced conversions” is to be considered in the light of the provisions of the Constitution relating to people’s fundamental right to freedom of religion, its legislative history and judicial interpretation and set the future roadmap to make. Pluralism and inclusiveness are characterized by religious freedom. Its purpose is to promote social harmony and diversity.

Mains question

Q. What is Fundamental right to freedom of religion? What was Mahatma Gandhi’s view on religion? How it is interpreted in the constitution of India?

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Food Procurement and Distribution – PDS & NFSA, Shanta Kumar Committee, FCI restructuring, Buffer stock, etc.

Need to expand the food safety net

Note4Students

From UPSC perspective, the following things are important :

Prelims level: National food security Act (NFSA)

Mains level: Food security, public distribution system and the problem

food

Context

  • The National Food Security Act (NFSA), 2013, through the Public Distribution System (PDS), provides a crucial safety net for roughly 800 million people. Even critics of the PDS appreciated its services during the COVID-19 lockdown.

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Background: COVID-19 lockdown and policy gaps in ensuring food security

  • Too many still excluded from the PDS: The humanitarian crisis resulting from the COVID-19 lockdown, made it apparent that too many were still excluded from the PDS.
  • Governments decision: In response to the humanitarian crisis, the Government made one sensible policy decision swiftly. It doubled the entitlements of the 800 million who were already covered by the PDS (from five kilograms per person per month, to 10kg). But that does nothing for those without ration cards.

National food security Act (NFSA)

  • Aims to provide subsidized food grains: The NFS Act, 2013 aims to provide subsidized food grains to approximately two-thirds of India’s 1.2 billion people.
  • Legal entitlements for existing food security programs: It was signed into law on 12 September 2013, retroactive to 5 July 2013. It converts into legal entitlements for existing food security programmes of the GoI.
  • Integrating various government schemes: It includes the Midday Meal Scheme, Integrated Child Development Services (ICDS) scheme and the Public Distribution System (PDS). The Midday Meal Scheme and the ICDS are universal in nature whereas the PDS will reach about wo-thirds of the population (75% in rural areas and 50% in urban areas).
  • It recognizes maternity entitlement: Pregnant women, lactating mothers, and certain categories of children are eligible for daily free cereals.
  • Key provisions: The NFSA provides a legal right to persons belonging to “eligible households” to receive foodgrains at a subsidised price. It includes rice at Rs 3/kg, wheat at Rs 2/kg and coarse grain at Rs 1/kg under the Targeted Public Distribution System (TPDS). These are called central issue prices (CIPs).

How Public Distribution System (PDS) is determined?

  • PDS coverage is determined by Section 3(2) of the NFSA 2013.
  • It states that the entitlements of eligible households “shall extend up to seventy-five per cent of the rural population and up to fifty per cent of the urban population.”
  • Section 9 of NFSA required that the total number of persons to be covered “shall be calculated on the basis of the population estimates as per the census of which the relevant figures have been published.”

food

What are the exclusion problems?

  • Coverage ratio is too low: The exclusion problem could be because the NFSA coverage ratios were too low to start with, or due to the ‘freeze’ in coverage in absolute terms (around 800 million).
  • Population increase has not been accounted: Between the last Census in 2011 and today, population increase has not been accounted for in determining the number of ration cards. No one could have anticipated that the 2021 Census would be postponed indefinitely. This means that even a decadal update has not happened.
  • Lack of sensitivity to understand the problem: There is no attempt at understanding or addressing the hardships of people who are deprived of the food security net that the PDS provides.
  • Court’s observation and a suggestion: Government inaction led to the matter being taken to the Supreme Court of India in the Problems and Miseries of Migrant Labourers case. The Court agreed that the prayer to increase coverage “seems to be genuine and justified”. It directed the Union of India to “come out with a formula and/or appropriate policy/scheme, if any, so that the benefits under NFSA are not restricted as per the census of 2011 and more and more needy persons/citizens get the benefit under the National Food Security Act”. Going further, the Court said that the Government could consider “projection of population increase” to resolve this issue.
  • Burdening the states: In its response, the Government attempts repeatedly to shift the blame to State governments. But States are responsible for identifying people for PDS ration cards, once they are given the numbers to be covered by the central government.

Way ahead

  • Several State governments have used their own resources this includes poor States such as Chhattisgarh and Odisha to expand coverage beyond the centrally determined quotas.
  • Robust procurement trends and a comfortable food stocks position are what make an expansion affordable.
  • Adjusting for population increase, as directed by the Supreme Court, will increase coverage by roughly 10% (from 800 million to 900 million).
  • Any sensible policy should have an in-built mechanism for updating coverage annually to account for population increase.

Conclusion

  • Instead of allowing the Government to delay this any further (the matter has been in Court since 2020), the Supreme Court should be firm, directing the Government to get on with apportioning the additional coverage of roughly 100 million across States, so that the States can start identifying new ration card beneficiaries.

Mains Question

Q. What is food security? What is National food security Act? There is number some problems for expanding food security net through PDS. Analyse and suggest way forward.

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G20 : Economic Cooperation ahead

G20: India at Urban20 (U20)

Note4Students

From UPSC perspective, the following things are important :

Prelims level: G20, U20

Mains level: India's G20 presidency and the future of cities

G20

Context

  • Fifty percent of the world’s population currently lives in urban areas, which is projected to increase by 1.5 times to 6 billion. However, cities continue to face mounting challenges in accommodating the needs of this rapidly expanding population. As a catalyst for global change, what promises can India’s presidency hold for half the world’s urban population?

Background

  • India’s G20 presidency began on December 1. It will be driven by the underlying vision of “Vasudhaiva Kutumbakam”, best encapsulated by the motto “One Earth, One Family, One Future”.
  • G20’s Sustainable Development agenda aligns itself with sustainable actions to meet the goals of the 2030 Agenda.

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G20

What is Urban 20 (U20)?

  • A city diplomacy initiative within G20 ecosystem: Within the G20 ecosystem, a city diplomacy initiative called the “Urban 20” (U20) was launched in December 2017. As one of the formal Engagement Groups under G20, the U20 forum was meant to collectively raise critical urban issues of G20 cities during the G20 negotiations.
  • Special emphasis on cities: U20’s City Sherpas emphasise on the increasing importance of cities (both G20 and non-G20) as a country’s engines of innovation, economic growth, and productivity.
  • Focus on climate change and sustainable development: U20 specifically focuses on climate change, sustainable development, and socio-economic issues in connection with the Sustainable Development Goals.
  • Largely remained a platform of recommendation: Despite U20’s concerted efforts to run parallel to G20, the absence of any written constitution, procedures, or formal agreement has made U20 unable to effectively address the aspirations and concerns of cities. U20 seems to have largely remained a platform for expression and making recommendations without being able to directly influence urban planning or implement policy initiatives.
  • In this backdrop India has a unique opportunity: Within this framework, India now has the unique opportunity to outline and action specific U20 goals to link with the larger objectives of one of the most influential international forums.

How U20 2023 provides an unique opportunity to India?

  • India’s U20 prospect can work towards engaging in meaningful policymaking and investments towards fulfilling the global 2030 Agenda.
  • By mindfully planning the allocation of urban resources and inspiring sustainable practices, India can set a new balanced template. While learning from the best practices of some of the soundest cities,

G20

How India can initiate actions at U20

  • Prioritizing post Covid urban social and emotional wellbeing: In a post-pandemic world, U20 2023 can priorities the role of urban mental health to raise awareness of its bearing as a consequence of an overpowering-built environment Urban amenities must account for the improvement of the overall quality of life and social-emotional well-being.
  • Emphasizing on efficient data and policies: U20 2023 can create a primer for effective data collection, analysis, monitoring, and reporting for timely assessment or urban plans to align with G20 and national agendas. Going further, India must emphasize policies for efficient data use and supporting data governance.
  • Increasing efficiency of digital services and bridging the digital divide gap: Digital literacy in urban India is only at 61 percent, suggesting a pervading low awareness of the government’s e-services. Moreover, gender biases in technology and digital skills lead to a greater gender digital divide suggesting a huge disparity in access to digital services. New regulatory frameworks are needed to encourage research and investment in bridging such gaps.
  • Gender inclusive planning to develop equitable cities: U20 2023 can call for global collaborations to develop equitable cities by engaging in dialogues around gender-inclusive planning. This is not only to benefit women and children but to include representation of diverse marginalised genders and LGBTQ+ persons in the urban planning process.
  • Prioritizing capacity building and training for city planners: It is also essential to highlight the importance of capacity building and training for planners and civic officials about the various sensitivities and impacts of urban development plans. India can bolster global joint discussions around increased investment in urban healthcare facilities.
  • Boosting investment in sustainable energy transition: While delivering on the Paris Agreement and the New Urban Agenda and 2030 Agenda, India can reinforce direct investment in areas such as sustainable energy and mobility transition. For instance, managing the risks of urban flooding in a changing climate has become a global focus area for policymakers.
  • Investing in quality education and skill development: With cities bourgeoning, investing in quality education and skilling has become critical to better prepare for the future of work and jobs for. Policies, across sectors, must support better skilling and training for entrepreneurship. For example, while the PM Employment Generation Programme and other Credit Support Schemes support MSMEs for training the youth and generating employment, we are yet to see their effectiveness and outreach. On the other hand, the rising trend of the gig economy demands innovative policymaking to accommodate the aspirations of the urban youth.
  • Local participation must be enhanced: Most importantly, U20 2023 can reinforce the importance of local-regional involvement for the integration of perspectives at the national and sub-national government bodies as the way forward. Urban Local Bodies (ULBs) can be strengthened further to facilitate basic infrastructure needs, inclusive economic growth and equitable development.

G20

How India can lead?

  • India’s theme of G20 2023 holds the promise of interconnectedness to bring in an attitudinal change through deliberation, partnerships, dialogues, cooperation and knowledge-sharing.
  • India can lead the way for global response and action by setting the stage for newer partnerships and agreements to facilitate community empowerment and social justice at both the local and societal levels.
  • By stressing on equity, inclusivity, sustainability and resilience, U20 2023 will be able to honour its commitment to establish better cities.

Conclusion

  • By exploring the interlinkages and shared issues related to urban planning, India can help pave the way to bring about a global consensus for renewed urban vigour.

 

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Mother and Child Health – Immunization Program, BPBB, PMJSY, PMMSY, etc.

Status of Maternal mortality in India

Note4Students

From UPSC perspective, the following things are important :

Prelims level: MMR and recent figures

Mains level: Maternal mortality in India

Maternal mortality

Context

  • India has improved its maternal mortality ratio (MMR) to 97 deaths per lakh in 2018-2020 from 103 deaths per lakh in 2017-2019. This is a considerable improvement from the 130 deaths per lakh in 2014-2016, the latest data released by the office of the Registrar General of India showed.

What is maternal mortality?

  • As per World Health Organization, Maternal death is the death of a woman while pregnant or within 42 days of termination of pregnancy, irrespective of the duration and site of the pregnancy, from any cause related to or aggravated by the pregnancy or its management but not from accidental or incidental causes.

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Maternal mortality

Maternal mortality ratio (MMR)

  • Main indicator: Maternal mortality ratio is a Kay indicator maternal mortality ratio.
  • Definition: The maternal mortality ratio (MMR) is defined as the number of maternal deaths during a given time period per 100,000 live births during the same time period.
  • Shows risk of maternal death: It depicts the risk of maternal death relative to the number of live births and essentially captures the risk of death in a single pregnancy or a single live birth.
  • SDG target: Target 3.1 of Sustainable Development Goals (SDG) set by the United Nations aims at reducing the global maternal mortality ratio to less than 70 per 100,000 live births.

Maternal mortality

Maternal mortality Ratio (MMR) in India: An overview of recent figures

  • North eastern states show improvement: In 2014-2016, the north-eastern state’s MMR was at a dangerously high 237 deaths per one lakh live births. This has improved significantly over the years to 229 in 2015-2017, 215 in 2016-2018 and 205 in 2017-2019, showed the data released November 28, 2022.
  • Southern states always better than national average: The southern state was always performing better than the national average and has almost consistently brought down even that figure from 46 in 2014-2016, 42 in 2015-2017, 43 in 2016-2018 and 30 in 2017-2019.
  • Kerala the best performer: Kerala continues to remain the best performer, with a low MMR of 19 per one lakh live births.
  • On regional level Assam improved but continues to have high MMR: On the regional level, Assam continues to have the highest MMR (195) but has improved its own performance over the years.
  • Better performing states: Among the better-performing states with an MMR lower than 100, barring Kerala, are Maharashtra (33), Telangana (43), Andhra Pradesh (45) and Gujarat (57).
  • Other states with high MMR: Madhya Pradesh (173), Uttar Pradesh (167), Chhattisgarh (137), Odisha (119), Bihar (118), Rajasthan (113), Haryana (110), Punjab (105) and West Bengal (105).
  • Sates with high MMR mostly belongs to socioeconomically poor regions: Most of these states belong to the Empowered Action Group (EAG) a classification of socioeconomically poor regions on whom the country’s development depends.

The Statistics including Maternal Mortality Rate and lifetime risk

  • Maternal mortality rate: It is the maternal deaths of women in the ages 15-49 per lakh of women in that age group.
  • As defined by Registrar General of India: The Registrar General of India defines as “the probability that at least one woman of reproductive age (15-49 years) will die due to childbirth or puerperium (postpartum period), assuming that chance of death is uniformly distributed across the entire reproductive span.”

Maternal Mortality Ratio (MMR) v/s Maternal Mortality Rate

  • Maternal Mortality Ratio (MMR): This is derived as the proportion of maternal deaths per 1,00,000 live births, reported under the Sample Registration System (SRS).
  • Maternal Mortality Rate: This is calculated as maternal deaths of women in the ages 15-49 per lakh of women in that age group, reported under SRS.

Maternal mortality

Maternal mortality rate in India

  • India’s maternal mortality rate is six.
  • poor-performing states include Madhya Pradesh (15.3), Uttar Pradesh (14.3), Assam (12.1), Bihar (11) and Chhattisgarh (9.9).
  • Kerala is the only state to achieve a maternal mortality rate of less than one, at 0.9.
  • Other states in the leading category include Maharashtra (1.8), Telangana (2.3), Andhra Pradesh (2.4) and Tamil Nadu (2.7).
  • The lifetime risk figures also show a similar trend, with Madhya Pradesh leading the way at 0.53 per cent, followed by Uttar Pradesh (0.50 per cent), Assam (0.42 per cent), Bihar (0.39 per cent) and Chhattisgarh (0.35 per cent).
  • At the national level, the lifetime risk of maternal mortality stands at 0.21 per cent.

Conclusion

  • India’s performance on the maternal mortality front has been improving consistently as the country achieves its national target of reducing MMR to below 100.But it still lags behind the UN-mandated Sustainable Development Goals target of an MMR equivalent to 70 deaths per 100,000 live births. The country has eight years to meet this benchmark by 2030. Other indicators assessing maternal health indicate large room for improvement.

Mains question

Q. What is Maternal mortality. What is the difference between Maternal mortality ratio (MMR) and Maternal mortality rate. Evaluate India’s progress in reducing MMR.

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Climate Change Negotiations – UNFCCC, COP, Other Conventions and Protocols

Why climate action needs women?

Note4Students

From UPSC perspective, the following things are important :

Prelims level: COP27

Mains level: Women participation in climate negotiations and actions

climate

Context

  • Women have historically been underrepresented at the UN’s global conference on climate change, and this year’s COP 27 congregation in Egypt, was no exception. A photo of the heads of state and government representatives participating in the event which went viral across social media, at the beginning of the summit, in fact, showcased the presence of only seven women leaders among the grand total of 110 attendees.

Women participation in climate negotiations

  • Analysis by BBC percentage of women is very less: As per an analysis conducted by the BBC, women accounted for a mere 34 percent of the committee members in negotiations rooms with some country teams having more than 90 percent men.
  • Participation women at recent COP27 was one of the lowest: According to the Women’s Environment and Development Organisation (WEDO), which tracks women’s participation in climate forum, the recent COP27 numbers represented one of the lowest concentrations of women seen at the UN climate summit.
  • Despite of collective pledge to increase women participation, number fallen: These number have in fact, fallen from a peak of 40 percent women’s participation during COP24 in 2018 and despite the countries collective pledge to increase female representation at these talks as early as 2011.
  • Skewed gender ration in negotiations on key climate issues: This skewed gender ratio, however, reflected the broader trend across delegation teams, which participated in negotiations on key climate issues such as funding, limiting the use of fossil fuels, carbon emissions, etc.

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climate

Why climate action needs women?

  • Women are most disproportionately affected by disasters: Females are in fact, most disproportionately affected when disasters hit as they suffer greater economic repercussions, bear an additional burden of unpaid care and domestic work, have lesser access to resources, and are pushed to drop out of school or marry early to help manage the family’s financial stress.
  • Domestic household responsibilities become more worse in disasters: Their responsibility to secure water, food, and fuel for their families becomes much more difficult during floods, droughts, or other climate-related crises, forcing them to travel to longer distances, putting their own health at risk.
  • Climate change also increases women’s vulnerability: As per new research published by ActionAid, climate change also increases women’s vulnerability to gender-based violence, further bringing about damaging consequences for their reproductive as well as psychological health.
  • Sustainable development and gender equality are intrinsically linked: The goal of pursuing sustainable development and bringing about gender equality are intrinsically linked, and one cannot be achieved without the attainment of the other.
  • Considering the various roles women play in the management of natural resources: Women just like any other member impact the overall management of natural resources through the various roles that they play including in the economy, in households, and the society. Their inclusion in climate negotiations is thus, crucial to ensure the development and implementation of a balanced approach to the diverse dimensions of sustainable development such as the economic, social and environmental.
  • Women have been at the forefront on environment related movements: Women and girls in all their diversity for centuries have played a transformative role in climate change adaptation as well as mitigation, and have been at the forefront of movements related to environmental and climate justice, putting forth some of the most creative and effective approaches for the promotion of sustainable energy transitions that help in the protection of local systems and are based on indigenous knowledge.
  • Gender diverse corporate boardrooms resulted in the adoption of more climate-friendly policies: There exists a growing body of evidence that shows the association between women’s participation and leadership in climate action, and better resource governance, conversation outcomes, and disaster readiness. This stands true, even for the private sector, where diversifying corporate boardrooms on the basis of gender have resulted in the adoption of more climate-friendly policies. For instance, according to a working paper series by the European Central Bank, “a 1 percent increase in the share of female firm managers leads to a 0.5 percent decrease in CO2 emissions
  • Comprise nearly half of the world’s population: The question, which therefore needs to be raised, is whether climate change mitigation, disaster reduction, and adaptation strategies can really be holistically developed without the inclusion of women who comprise of nearly half of the world’s population.
  • Women with their strong body of knowledge and expertise should, thus, be recognised as co-owners and agenda-settlers of the climate process with their skills, knowledge and experience being utilised to improve climate governance outcomes at the local and national levels as well as in multilateral climate forums and the private sector.

climate

What can be done to increase women participation in climate change negotiations?

  • Quotas can be provided not only to increase participation but also to address inequalities: To begin with, measures, including quotas can be put in place to not only increase women’s meaningful participation and leadership at all levels of climate action decision-making but also to address persisting inequalities including in terms of their access and control of resources such as land, technology, and finance.
  • Integrating a gender perspective across spectrums: Secondly, a conscious effort needs to be made by the policy makers to integrate a gender perspective across spectrums, ranging from design, monitoring and evaluation, implementation and funding of all national climate policies, plans and actions to ensure that the needs and concerns of women are being adequately addressed.
  • Expanding gender responsive finance and services: The member states must expand gender-responsive finance as well as gender-responsive public services, healthcare systems, universal social protections, combining measures both to eliminate gender-based violence in climate policies and to promote a care economy, thereby, guaranteeing the provision and access to justice for women.
  • Implementing the ways to multiply gender equality, thereby empowering women to harness their skills: Heads of states must identify and implement ways to multiply gender equality, empowering women and young girls. To put it simply, global investments, especially for women and girls belonging to marginalise communities must be focused on directly amplifying and fostering their skills, resilience and knowledge, thereby, removing critical barriers that hinder their participation in decision-making positions.

climate

Way ahead

  • There remains no doubt that climate change inevitably results in the exacerbation of gender inequalities.
  • The world leaders, therefore, need to pay attention to the voices of women who continue to bear a differential impact with mitigations strategies and negations being specifically tailored to the gender issues that women are confronted with during a climate-related crisis.

Conclusion

  • Climate change is a complex global phenomenon, which requires comprehensive global action that includes each and every individual. The UN Climate Change Conference, one of the biggest summits instead of excluding women, should therefore, serve as an opportunity to recognise and augment the innovative climate actions that are being brought by women. It should also provide a platform for understanding how existing structures prevent women’s engagement and subsequently, develop response mechanisms with policy measures that take into account the immediate as well as long-term gendered impacts of environmental calamities.

Mains Question

Q. Women have historically been underrepresented at the UN’s global conference on climate change and COP 27 have been no exception. Why climate action needs women? What can be done? Discuss.

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

Discussing the Indian Economy’s pressing problems

Note4Students

From UPSC perspective, the following things are important :

Prelims level: NA

Mains level: India's economic growth and the problems

Economy

Context

  • Several agencies, including the IMF and the World Bank have projected lower growth rates for the Indian economy in FY23, than the 7.2 per cent estimated by the RBI in April. The Central bank has now lowered its forecast to 6.8 per cent. Given the current situation, with the Q2 FY 2023.

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Economy

Current economic growth estimation

  • Economy is likely to grow at 6.5-7.0 per cent: Given the current situation, with the Q2 FY 2023 GDP growth clocking in at 6.3 per cent, the economy is likely to grow at 6.5-7.0 per cent in this fiscal year.
  • Considering economic uncertainties it is difficult to arrive at precise estimate: It is difficult to arrive at a precise estimate for growth this year with unprecedented economic uncertainty worldwide, including high global inflation, synchronized monetary tightening, and the impact of the Ukraine war.

Positive signs in the Indian Economy

  • Positive medium-term growth prospects: Company and bank balance sheets are healthier, credit growth is rising, and capacity utilisation has increased, all of which augur well for investment activity.
  • Positive impact on tourism: The waning of Covid-19 should hopefully have a positive impact on travel, transport and tourism. Construction activity should pick up further with the reduction in housing inventory and almost stable prices over the last decade.
  • On inflation India is doing better: On the inflation front, India is doing better than many advanced economies and emerging markets.

Economy

What is Indian economy’s pressing problems specifically in terms of Labour-intensive growth?

  • Employment a biggest concern: Employment, an issue that has persisted over the last two decades. In brief, we have not generated enough good jobs to match the scale at which the economy has grown, especially in the organised sector. As a result, we have very high under-employment and poor-quality employment, which have hampered a much-needed move away from agriculture.
  • Lack of precise data on people living in poverty: We do not have a precise estimate of the current levels of poverty, as there has been no household consumption survey since 2011-12, and the 2017-18 survey was abandoned due to technical issues. But there is reasonable consensus that poverty could be around 10 per cent of the country’s population, A low number compared to the past, but as many as 140 million people could still be living in poverty.
  • Lack of non-agricultural jobs: The rising demand for the MGNREGA, and the importance of food distribution schemes and other welfare programmes for the poor are indicators of the lack of non-agriculture jobs being generated.
  • Lowest rate of women participation in labour force: An alarming aspect of the employment problem in India is the low participation rate of women in the labour force, which is among the lowest in the world. This loops back to the importance of labour-intensive manufacturing. For example, much of Bangladesh’s success, and that of Southeast Asian countries, in exports and manufacturing stems from the large number of women working in their factories.
  • Women literacy is rising but increasing number of educated women are not working: A positive trend in India has been the growing trend in girls attending schools and college in the last 20 years, but this also means that an increasing number of educated women are not working.
  • Despite of 1991 reforms still remains an untapped opportunity: With the LPG reforms, the expectation was that, as the economy opened up to global competition, India’s low wage levels would attract private investment into labour-intensive manufacturing, thus generating jobs. This was the path followed by the East Asian economies that experienced high growth and rapid development. But for India this remains an untapped opportunity.
  • Manufacturing is shifting to countries other than India: Even with rising wage levels in China, manufacturing is shifting to countries other than India. The PLI (production-linked incentives) scheme has been rolled out to encourage manufacturing. It may need some tweaking to be biased towards labour-intensive manufacturing as China vacates space in this area. This may seem at odds with the more popular view that it is small and medium enterprises which promote employment.
  • Country’s real exchange rate is not healthy: An overvalued rupee has discouraged the export of labour-intensive manufacturing goods, which are very price-sensitive in global markets. It has also had a dampening effect on domestic production as our currency has depreciated at a lower rate than other emerging economies like China and Indonesia.
  • Depreciated rupee impacting domestic producers by inflow of cheaper imports: Domestic producers of goods that compete with imports into our markets have been impacted by the inflow of cheaper imports. This has disincentivised them from expanding production and generating employment.
  • Micro, small and medium enterprises (MSMEs) are severally hit: Problems that have come to the fore post-pandemic include the health of micro, small and medium enterprises (MSMEs). Accurate information on this is somewhat scarce but anecdotal evidence suggests that they have been more severely hit than the formal sector.

Economy

Way ahead

  • The rupee has been overvalued for long and needs to be allowed to depreciate, though in a calibrated way, ensuring external and financial stability.
  • Job growth is crucial if we are to reduce the still high levels of poverty in the country
  • Incentivizing the domestic producers so that they can compete with the cheaper inflow of imports and expands their manufacturing thereby generating employment in the economy
  • The continued recovery of the formal sector, as indicated by various metrics, in terms of the improved health of corporates and banks should effectively pull up the MSMEs through supply chains linkages, among others.
  • We still have a negative real interest rate (that is, the difference between the RBI’s policy rate and inflation). Hence, the policy rate needs to rise further, providing a push to financial savings, which are needed to generate higher investment for growth.
  • Inflation need to be contained through supply-side measures as well, such as an improvement in the supply of food products.

Conclusion

  • High under-employment and poor-quality employment have hampered a much-needed move away from agriculture. A focus on labour-intensive formal manufacturing is the need of the hour.

Mains Question

Q. India is showing positive signs of economic recovery however the economy still has a hangover from the past and some are exacerbated by Covid. Discuss.

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Tourism Sector

Need for an effective Tourist Police

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Tourist Police

Mains level: Tourism in India and Safety of tourists

Tourist

Context

  • Crimes against tourists and other foreign nationals appear to be on the rise in India. Consider several recent cases, and the lessons they suggest.

Some of the recent cases of crime against tourists

  • A case of rape and murder in Kerala: A few days ago, a Kerala session court sentenced two men to life imprisonment for the rape and murder of a Latvian tourist in 2018.
  • A case of a rape of a girl child in Goa: A 12-year-old Russian girl was raped in a hotel in Goa on April 6 this year. The rapist was an employee of the hotel in which the girl was staying with her mother.
  • A case extortion in Gurugram: An Iraqi couple staying at a hotel in Gurugram for the treatment of the husband in the Medanta hospital was accosted by two miscreants posing as policemen on October 23. They accused the couple of carrying drugs and on the pretext of checking their wallets, fled with $15,000 the couple had saved for the treatment.
  • A case of sexual misconduct in Delhi: On September 2, a British woman lawyer lodged a complaint of sexual misconduct against a cab driver who was ferrying her from the airport to her hotel in South Delhi. The incident traumatized her to the extent that she left for the U.K. within two days of her arrival.

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Status of Crimes against foreigners

  • Drastic decline in cases of crimes against foreigners in Delhi: According to data of the National Crime Records Bureau (NCRB), Delhi recorded 27 cases of crime against foreigners last year, a drastic decline from 62 cases reported in 2020 and 123 in 2019.
  • Sharp reduction Rajasthan: Rajasthan has shown a sharp reduction in registration of crimes from 16 in 2019 to just 4 in 2020 and two cases last year, which could be attributed to the sharp decline in tourist arrivals due to COVID-19.
  • Though there is a decline in cases but the data is still shameful and to be studied: As many as 29 foreigners were murdered in the last three years. While 14 foreigners fell victim to rape last year, 16 were raped in 2020 and 12 in 2019. As many as 15 cases of assault to outraging modesty of foreign women were registered last year across the country, apart from 14 complaints of cheating. While 142 cases of theft were lodged by foreigners in 2019, it declined to 52 in 2020 and further dipped to 23 in 2021.
  • Women are more prone and most cases go unreported: Women are more prone to sexual attacks by criminals on the prowl in tourist destinations. For every crime committed against foreigners, there would be several others that go unreported for multifarious reasons, with one of them being the fear instilled in them by the threats of these criminals. In the South Delhi incident, the British national was reluctant to lodge a formal complaint out of fear

Tourist

How do such cases of crimes against tourists tarnish our image?

  • Not only dents our image but also impacts on tourism: Crime against foreigners not only dents our image globally but could also adversely affect the inflow of foreign tourists, which is a vital source of income for our country.
  • It impacts Tourism sector which is one of the significant sources of FOREX: Tourism happens to be one of the biggest foreign exchange earners for India. Such cases may leave tourists moral down and they may lose sense of security.

What is Tourist police scheme and what steps can be taken to ensure security of the Tourists?

  • Booklet on the tourist police scheme and tourist police stations: The Bureau of Police Research and Development (BPRD) has brought out a booklet on the tourist police scheme detailing the mode of setting up of tourist police stations and control rooms, outposts, uniforms, recruitment, qualifications, training and logistics requirements for tourist police stations.
  • Identified tourist spots: As many as 25 popular tourist spots have been identified in the country where the tourist police necessarily need to be deployed to help foreigners. As an incentive, 30% deputation allowance has been recommended for the police personnel who joins the tourist police on deputation.
  • Identified Criminals in and around tourists’ spots need to be kept on constant surveillance: While the setting up of tourist police stations is a commendable step to provide safety to foreigners, much needs to be done to instil a sense of security in them even before they leave their countries for India. With theft being the most common crime committed against foreigners, all criminals in and around tourist spots need to be identified and kept under constant surveillance.
  • Fast track courts should be set immediately to try cases of crimes against tourists: Since foreigners come for short durations, the cases cannot be allowed to linger on in courts for long. Fast track courts should be set up immediately to try cases of crime against foreigners and the culprits punished speedily. It may be recalled that a rape convict, Bitihotra Mohanty, was tried for raping a German national in Alwar (Rajasthan) on March 21, 2006 and he was sentenced to seven years imprisonment on April 12, that is, within 22 days.

Tourist

A positive step by Ministry of Tourism

  • For the effective implementation of Tourism police scheme: In order to provide a safe environment for tourists, the Ministry of Tourism, in collaboration with the Bureau of Police Research and Development (BPRD), organised a conference in New Delhi on October 19, 2022. It was organised with a view to “sensitise the specific requirements of the tourists for effective implementation of Uniform Tourist Police Scheme at pan-India level”.
  • States that have tourist police: Though the concept of ‘tourist police’ has been in vogue for the past few years, it has not been given the kind of attention it deserves. The States that have tourist police are Uttar Pradesh, Madhya Pradesh, Delhi, Goa, Rajasthan and Kerala.
  • Delhi a neglected state is gearing up for tourist police wing: In view of the forthcoming G20 Summit, the Delhi police is gearing up its tourist police wing, which was hitherto in a neglected state and so are other States which will see a huge influx of foreigners.

Conclusion

  • With optimistic predictions of about 13.34 million foreign tourists arriving by 2024, there is a pressing need to upgrade our security systems specially to provide a flawless security blanket cover to foreign tourists. Safety assumes utmost importance to draw tourists in hordes.

Mains question

Q. What is tourist police scheme? Why it is necessary to have such a tourist security wing in India? What more steps can be taken to ensure the security of tourist in India?

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Foreign Policy Watch: India-SAARC Nations

SAARC vs BIMSTEC

Note4Students

From UPSC perspective, the following things are important :

Prelims level: SAARC, BIMSTEC and regional organisations

Mains level: Bilateralism, regionalism and India's approach towards SAARC and BIMSTEC

SAARC

Context

  • December 8 is commemorated as SAARC Charter Day. It was on this day, 37 years ago, that the South Asian Association for Regional Cooperation (SAARC), an intergovernmental organization, was established.

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What is SAARC?

  • Establishment: The South Asian Association for Regional Cooperation (SAARC) was established with the signing of the SAARC Charter in Dhaka on 8 December 1985.
  • Members: It is an intergovernmental organization, was established by Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan and Sri Lanka Afghanistan acceded to SAARC later.
  • Secretariat: The Secretariat of the Association was set up in Kathmandu on 17 January 1987.
  • Objectives: The objectives as outlined in the SAARC Charter are, to promote the welfare of the peoples of South Asia and to improve their quality of life; to accelerate economic growth, social progress and cultural development in the region and to provide all individuals the opportunity to live in dignity and to realize their full potentials; to promote and strengthen collective self-reliance among the countries of south Asia.

What SAARC has achieved?

  • SAARC has failed abjectly in accomplishing most of its objectives.
  • South Asia continues to be an extremely poor and least integrated region in the world.
  • The intraregional trade and investment in South Asia are very low when compared to other regions such as the Association of South East Asian Nations (ASEAN) and Sub-Saharan Africa.
  • Pakistan has adopted an obstructionist attitude within SAARC by repeatedly blocking several vital initiatives such as the motor vehicles agreement, aimed at bolstering regional connectivity.
  • Deepening hostility between India and Pakistan has made matters worse. Since 2014, no SAARC summit has taken place leaving the organisation rudderless, and practically dead.

SAARC

But why to bother about SAARC?

  • South Asia is important for India’s national interest: Because South Asia, that is India’s neighbourhood, is important for India’s national interests. This is best captured in the current government’s ‘neighbourhood first’ policy.
  • SAARC, a pan south Asia reach: SAARC is the only intergovernmental organisation with a pan-South Asia reach. India can judiciously employ it to serve its interests in the entire region.
  • Weakened SAARC means heightened instability: A weakened SAARC also means heightened instability in other promising regional institutions such as the South Asian University (SAU), which is critical to buttressing India’s soft power in the region.

Bilateralism or regionalism, which one is best for India?

  • Bilateralism can complement, not substitute regional efforts: A new narrative is that in South Asia, India can successfully use the instrument of bilateralism over regionalism to pursue its interests. While bilateralism is undoubtedly important, it can at best complement, not substitute, regional or multilateral efforts.
  • Regionalism in East Asia and Africa: Regionalism has brought immense success in other parts such as East Asia and Africa. Regionalism can deliver prosperity in the South Asian region too, especially because multilateralism is weakening.
  • concept of new regional economic order: Looking at ASEAN’s spectacular success in regional integration, international lawyers Julien Chaisse and Pasha L. Hsieh have developed the concept of a new regional economic order, a process through which developing countries search for a trade-development model, based on incrementalism and flexibility; this is different from the neoliberal model laid down by the Washington Consensus.

SAARC

What is BIMSTEC?

  • Regional organization of seven members lying in or adjacent to BOB: The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) is a regional organization comprising seven Member States lying in the littoral and adjacent areas of the Bay of Bengal constituting a contiguous regional unity.
  • Establishment: This sub-regional organization came into being on 6 June 1997 through the Bangkok Declaration.
  • Act as a bridge between South and South East Asia: The regional group constitutes a bridge between South and South East Asia and represents a reinforcement of relations among these countries.
  • Provides Inter regional cooperation platforms: BIMSTEC has also established a platform for intra-regional cooperation between SAARC and ASEAN members.

Did you Know?

  • BIMSTEC comprises five South Asian nations (Bangladesh, Bhutan, Nepal, India and Sri Lanka) and two ASEAN countries (Myanmar and Thailand).
  • Pakistan is NOT a BIMSTEC member.

Importance of BIMSTEC for India

  • India shifted its diplomatic energy from SAARC to BIMSTEC: In recent years, India seems to have moved its diplomatic energy away from SAARC to BIMSTEC. This resulted in BIMSTEC, after 25 years, finally adopting its Charter earlier this year.
  • BIMSTEC is better than SAAC charter: The BIMSTEC Charter is significantly better than the SAARC Charter. For instance, unlike the SAARC Charter, Article 6 of the BIMSTEC Charter talks about the ‘Admission of new members’ to the group. This paves the way for the admission of countries such as the Maldives.
  • However no flexible formula like ‘ASEAN Minus X’: Notwithstanding the improvements, the BIMSTEC Charter, to boost economic integration, does not contain the flexible participation scheme of the kind present in the ASEAN Charter. This flexible scheme, also known as the ‘ASEAN Minus X’ formula, allows two or more ASEAN members to initiate negotiations for economic commitments. Thus, no country enjoys veto power to thwart economic integration between willing countries.
  • Obstructionist attitude of Pakistan within SAARC: Given the experience of SAARC, where Pakistan routinely vetoes several regional integration initiatives, it is surprising that BIMSTEC does not contain such a flexible participation scheme. A flexible ‘BIMSTEC Minus X’ formula might have allowed India and Bangladesh or India and Thailand to conduct their ongoing bilateral free trade agreement (FTA) negotiations under the broader BIMSTEC umbrella. This would have eventually strengthened BIMSTEC by enabling the gradual and incremental expansion of these binding commitments to other members. India should press for this amendment in the BIMSTEC Charter.

Some steps to take

  • BIMSTEC should not end up as another SAARC: For this, its member countries should raise the stakes. A high-quality FTA offering deep economic integration, something that Prime Minister Narendra Modi also advocated at the last BIMSTEC ministerial meeting would be an ideal step.
  • India should try make the organizations flexible to ensure peace and prosperity in the region: Likewise, India should explore legal ways to move successful SAARC institutions such as SAU to BIMSTEC. These steps will give stronger roots to BIMSTEC and enable erecting a new South Asian regional order based on incrementalism and flexibility, ushering in prosperity and peace in the region.

Conclusion

  • Since South Asia cannot repudiate regionalism, reviving SAARC by infusing political energy into it and updating its dated Charter will be an ideal way forward. However, in the current scenario, this is too idealistic. So, the next best scenario is to look at other regional instruments such as the Bay of Bengal Initiative for Multi-Sectoral, Technical and Economic Cooperation (BIMSTEC).

Mains Question

Q. India seems to have shifted its diplomatic energies away from SAARC to BIMSTEC in recent years. What are the reasons for doing so?

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