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Contents
NEWS @ a glance
POLITY and SOCIAL ISSUES…………4 5. WPI inflation at 2-year low in May .......... 12
1. ED to move Interpol for Red Notice on Zakir 6. MoSPI proposes to use big data analytical
Naik 4 tools to improve official statistics ............... 13
2. Row over State Flag Day in Kashmir ..........5 7. Trade deficit widens to $15.36 bn in May 13
3. Marriage steals childhood: UNICEF ...........5 8. India to impose retaliatory tariffs on U.S.
goods 14
4. The merits of a free ride ...........................5
5. Draft National Education Policy 2019 ........6
International Relations………………..14
6. Starting at three: On RTE progress ............7 1. India, Maldives sign six key agreements .. 14
7. All States, Union Territories can now set up 2. Sudan on the brink ................................. 15
Foreigners Tribunals ....................................7 3. Quad one way to fix regional issues:
8. A dismissed teacher can file a writ plea for her Australian envoy ........................................ 15
rights: SC .....................................................8 4. Narendra Modi, Xi Jinping agree to speed up
9. Disaster Management...............................8 boundary talks ........................................... 16
10. National Investigation Agency ............9 5. Thousands march in Hong Kong to protest
China extradition bill .................................. 17
11. Navy hosts information sharing workshop
9 ENVIRONMENT………………………..17
12. Sahitya Akademi awards ....................9 1. Golden langur to get fruits of MGNREGA in
Assam ........................................................ 17
13. Saving childhoods, World Day against
Child Labour.................................................9 2. Sportswear giant set to tap Indian firm’s PET
project to cut virgin plastic use .................. 18
Economy……………………………………10
3. SIAM, CII call for a practical road map for
1. RBI cuts repo rate by 25 basis points to 5.75%
electric vehicles ......................................... 18
10
4. Aviation sector faces heat over warming 19
2. Lower leverage ratio may improve lending
activity ....................................................... 10 5. How much plastic you consume in a week19
8. World Food Safety Day ........................... 25 9. Relief for the persons in J&K ................... 31
9. Indian space station ................................ 25 10. The Aadhaar and Other Laws
(Amendment) Bill, 2019 ............................. 31
10. Gene-edited babies.......................... 26
11. International Arbitration Centre (NDIAC)
ART and CULTURE……………………27 Bill, 2019 .................................................... 31
1. U.P.’s Chaukhandi Stupa declared ‘protected 12. Strategy to combat problem of Child
area…......................................................... 27 Labour ....................................................... 32
PIB Analysis……………………………27 13. 5th Governing Council of NITI Aayog . 32
News In-depth
Polity and Social issues……………34 3. Striking a balance: On stressed assets ..... 39
1. Squandering the gender dividend ........... 34 4. U.S. is shooting itself in the foot on GSP .. 40
9. Disaster Management
Why in the news?
The cyclone VAYU is expected to make
landfall in Gujarat. Hence there was a
meeting of the Home ministry as well as
the national crisis management committee.
Let us understand the structure and role of
disaster management in the country.
National Disaster Management Authority
(NDMA)
10. National Investigation Agency concerns and threats which are prevalent
What is NIA? in the region.
NIA – National Investigation Agency is the Why in News?
Central Counter Terrorism Law The Indian Navy is hosting a maritime
Enforcement Agency in India. Its statutory information sharing workshop under the
body under NIA Act 2008. aegis of the Information Fusion Centre —
The NIA aims to set the standards of Indian Ocean Region (IFC-IOR) at
excellence in counter terrorism and other Gurugram
national security related investigations at
the national level by developing into a
highly trained, partnership oriented 12. Sahitya Akademi awards
workforce. NIA aims at creating deterrence What is Sahitya Akademi award
for existing and potential terrorist It is a literary honor annually conferred by
groups/individuals. Sahitya Akademi, India’s National
It aims to develop as a storehouse of all Academy of letters, on writers of
terrorist related information. outstanding works in any of the twenty
What is a Hawala System? four major Indian languages including
The hawala system refers to an informal English language.
channel for transferring funds from one This award was instituted in 1954,
location to another through service comprises a plaque and a cash prize of Rs.
providers—known as hawaladars— 10,000. This is the second highest literary
regardless of the nature of the transaction honor, after Jnanpith Puraskar centered by
and the countries involved. the Govt. of India.
Why in the news? Why in news?
National Investigation Agency (NIA) has Twenty-two writers across languages were
arrested a Rajasthan resident from the selected for Sahitya Akademi’s Bal Sahitya
Jaipur airport after he was deported from Puraskar 2019
the United Arab Emirates (UAE), who was The Akademi also selected 23 writers for
involved in terror funding and hawala the Yuva Puraskar 2019. This award is
system. given to writers aged below 35.
Economy
The MPC has cut the policy repo rate by 25
1. RBI cuts repo rate by 25 basis points bps (100 bps=1%) to 5.75% to address
to 5.75% growth concerns.
About MPC The rate cut could lead to reduced EMIs on
housing, vehicle and personal loans if
The Monetary Policy Committee (MPC) is a banks decide to pass on the benefit.
committee of the RBI, headed by its The stance of the policy has also been
Governor, which is entrusted with the task changed from neutral to
of fixing the benchmark policy interest “accommodative”.
rate (repo rate) to contain inflation within The change in stance to “accommodative"
the specified target level. means there is a possibility of further
The MPC has six members monetary easing in the months ahead.
RBI Governor (Chairperson), RBI Deputy The RBI has also revised GDP growth
Governor in charge of monetary policy, projection for the current financial year
one official nominated by the RBI Board from 7.2% to 7%.
and remaining 3 members would
represent the Government.
The MPC takes decisions based on majority
vote.
In case of a tie, the RBI governor will have
a second or casting vote.
What is Repo rate?
Repo rate is the rate of interest which is
applied by RBI to commercial banks when
the latter borrows from RBI. Working group
Repo rate is used to control inflation. The RBI has also set up an internal
In the event of raising inflation, RBI working group to review liquidity
increase repo rate which will act as a management framework with a view to
disincentive for banks to borrow from the simplify the current framework.
central bank. The RBI said the objective was also to
This ultimately reduces the money supply clearly communicate the objectives,
in the economy and thus helps in arresting quantitative measures and toolkit of
inflation. liquidity management by the RBI.
Similarly, if it wants to make it cheaper for
banks to borrow money, it reduces the 2. Lower leverage ratio may improve
repo rate. lending activity
Why in News? What is a ‘leverage ratio’ for banks?
The Basel Committee on Banking 3. Banking system on the cusp of a
Supervision (BCBS) introduced a leverage transformation: Das
ratio in the 2010 Basel III package of
What’s in the news?
reforms.
RBI Governor Shaktikanta Das in a speech
The leverage ratio measures a bank's core
at the National Institute of Bank
capital to its total assets. The ratio uses
Management, Pune, said that the banking
tier 1 capital to judge how leveraged a
system is on the cusp of a transformation,
bank is in relation to its consolidated
aided by recent policy measures to reduce
assets. Tier 1 assets are ones that can be
vulnerabilities and improve its financial
easily liquidated if a bank needs capital in
health.
the event of a financial crisis.
Improving parameters
The higher the tier 1 leverage ratio, the
There was a significant improvement in
higher the likelihood of the bank
asset quality of scheduled commercial
withstanding negative shocks to its
banks (SCBs) in 2018-19 as the gross non-
balance sheet. So, it is basically a ratio to
performing assets (NPA) ratio declined to
measure a bank's financial health.
9.3% as on March 2019. It was 10.8% in
Basel III established a 3 percent minimum
September 2018 and 11.5% in March
requirement for the leverage ratio while it
2018.
left open the possibility of making the
At the same time, there has been an
threshold even higher for certain
improvement in the provision coverage
systematically important financial
ratio (PCR) of SCBs to 60.9% in March
institutions.
2019 from 48.3% in March 2018 and 44%
Why in News?
in March 2015.
During its second bi monthly monetary
(The PCR gives an indication of the
policy meeting, the central bank has
provision made against bad loans from the
mandated leverage ratio of 3.5% for all the
profit generated. Higher the PCR, lower is
banks except for the domestic systemically
the unexposed part of the bad debts)
important banks (D-SIBs), which will have
There has been evidence of credit growth
a 4% ratio. The ratio was indicated to be
picking up after remaining subdued in the
4.5% earlier.
last few years.
RBI’s decision to bring leverage ratio for
The capital adequacy ratio (CAR) of the
banks in line with Basel-III standards will
banks, which were at 14.2%, remains well
improve the lendable resources, bankers
above the regulatory requirement of 9%.
said.
(CAR is the ratio which protects banks
What is a domestic systemically important
against excess leverage, insolvency and
bank?
keeps them out of difficulty. It is defined as
D-SIB means that the bank is too big to fail.
the ratio of banks capital in relation to its
According to the RBI, some banks become
current liabilities and risk weighted assets.
systemically important due to their size,
CAR = (Tier I + Tier II + Tier III (Capital
cross-jurisdictional activities, complexity
funds)) /Risk weighted assets)
and lack of substitute and interconnection.
Capital infusion
Banks whose assets exceed 2% of GDP are
Mr. Das added that even though the
considered part of this group.
government’s capital infusion has helped
Both public and private sector banks can
PSBs improve their balance sheets, they
be designated as D-SIB.
should not become too dependent on this
source. Depending upon individual
situations, PSBs should access the capital
market for mobilization of capital.
Priority to governance reforms
The Governor said among the issues that g) Cement production (weight: 5.37 per cent)
would be addressed in the coming months, h) Electricity generation (weight: 19.85 per
was that of governance reforms, which a cent).
‘first and foremost’ priority was.
It was important to enhance the quality
and the stability of bank boards through
further streamlining the appointment
process, succession planning and
compensation.
International Relations
The Memorandums of Understanding
1. India, Maldives sign six key (Mou) covered areas such as hydrography,
agreements health, passenger and cargo services by
What’s in the news? sea, capacity building in customs and civil
Prime Minister Narendra Modi on his visit service training.
to the Maldives, his first state visit abroad A technical agreement on sharing “White
since being re-elected to office, signed six Shipping Information” between the Indian
key agreements, reaffirming cooperation Navy and the Maldives National Defence
between the two countries. Force was also signed. (White shipping
information refers to exchange of relevant As talks between pro-democracy activists
advance information on the identity and and the military rulers collapsed,
movement of commercial non-military paramilitary groups unleashed deadly
merchant vessels) violence this week to break the sit-in,
After the talks, Mr Modi said, the two killing at least 100 people and injuring
countries have agreed to start a ferry hundreds.
service between Kochi and the Maldives. The UN Security Council couldn’t even
He added that the launch of RuPay Card in condemn the violence as China, backed by
the Maldives will give a boost to tourism. Russia, blocked the move.
Mr Modi was also conferred with the Saudi Arabia and the United Arab
Maldives’ highest honour — the Rule of Emirates, which offered financial aid to the
Nishan Izzuddeen — by President Ibrahim junta as soon as Mr. Bashir was removed
Mohamed Solih. from power, also support the generals.
Ties reset
After years of witnessing souring relations
during President Abdulla Yameen’s term
from 2013-2018, New Delhi and Male reset
ties last year after President Solih was
elected.
Mr. Modi attended President Solih’s
inaugural ceremony in Male in November
2018, and President Solih’s first visit
abroad, after assuming office, was to India
in December 2018, a stark shift from Mr. 3. Quad one way to fix regional issues:
Yameen’s time when New Delhi grew Australian envoy
increasingly concerned over his apparent What is QUAD?
“China tilt”. Indo-Pacific Quadrilateral is a closed group
While Mr. Modi’s visit is seen as consisting of India, Australia, Japan & USA.
underscoring his government’s Japan pioneered the initiative about a
“neighborhood first policy”, President decade ago as a coalition of maritime
Solih has reaffirmed his “India-First democracies.
Policy”, pledging his government’s full Securing a rules-based global order, liberal
support towards deepening the trading system and freedom of navigation
multifaceted, mutually beneficial are believed to the guiding principles.
partnership between India and the QUAD was revived in 2017 but the
Maldives. grouping has so far shied away from
adding a military aspect to it. The latest
2. Sudan on the brink
meeting was held last month in Bangkok.
What’s in the news? It is being viewed as response to increased
After toppling the Sudanese dictator Omar Chinese economic and military power.
al-Bashir in April after a months-long What is RCEP?
popular uprising, the sudanese army Regional Comprehensive Economic
reinstalled itself at the helm. Partnership is a grouping of the Asean’s 10
The protesters had demanded a transfer of members plus India, China, Japan, South
power to a transitional civilian Korea, Australia and New Zealand.
government, followed by free and fair It envisages regional economic integration
elections. leading to the creation of the world’s
But the generals used the crisis to largest regional trading bloc, accounting
concentrate more powers in their own for nearly 45% of the world’s population
hands.
with a combined gross domestic product Following the accession of Uzbekistan to
(GDP) of $21.3 trillion. the organisation in 2001, the Shanghai
The pact is still under negotiation. Five was renamed the SCO.
Why in News? India and Pakistan became members in
Australia’s High Commissioner in India Ms. 2017.
Harinder Sidhu asserted that there is need The Regional Anti-Terrorist Structure
for flexibility, agility and speed in solving (RATS) of the SCO engaged in furthering
regional problems and the Quad is one of cooperation and ties between member
many such small groupings in solving countries on concerns of terrorism,
them. security, drug trafficking, crime and cyber
On trade and investment in the region, Ms. warfare.
Sidhu stressed the importance of
concluding the Regional Comprehensive
Economic Partnership (RCEP). A successful
conclusion to negotiations on RCEP would
help shape the regional rules and norms
governing trade, investment and the
broader economy and it deals India into
regional economic integration.
Naval exercise
Australia expressed its willingness to India
in joining the Malabar Naval Exercise.
But India has not responded positively to
Australia’s request to join the Malabar Why in News?
exercises (a trilateral naval exercise Indian Prime Minister Narendra Modi and
involving the United States, Japan and Chinese President Xi Jinping met in
India), Bishkek, the capital of Kyrgyzstan, where
However, the two countries have they will participate in the summit of the
expanded bilateral military cooperation Shanghai Cooperation Organisation (SCO).
over the last few years. Both agreed to expedite the dialogue on
The latest edition of the bilateral naval the India-China boundary issue for
exercise AUSINDEX in April saw the largest securing a “fair” solution.
deployment of Australian military assets to The two leaders discussed the status of the
India in peacetime. bilateral relationship since the Wuhan
summit of April 2018, which came in the
backdrop of tension following the 73-day
4. Narendra Modi, Xi Jinping agree to Doklam standoff.
speed up boundary talks The attention on the border issue acquires
About SCO significance as the Chinese President is
SCO is a permanent intergovernmental expected to visit India later this year for a
international organisation established in summit with Mr. Modi.
2001. Mr. Xi highlighted the need for regional
It’s a Eurasian political, economic and cooperation and connectivity and singled
military organisation aiming to maintain out the Bangladesh-China-India-Myanmar
peace, security and stability in the region. (BCIM) economic corridor as an example
Prior to the creation of SCO in 2001, for expanding the India-China ties, which
Kazakhstan, China, Kyrgyzstan, Russia and had entered a new phase after the Wuhan
Tajikistan were members of the Shanghai informal summit.
Five.
5. Thousands march in Hong Kong to Hong Kong and China relationship
protest China extradition bill Hong Kong, a former British colony, was
returned to China in 1997 under a policy
What’s in the News?
known as “one country, two systems,”
Several thousand people protested in Hong
which promised the territory a high degree
Kong against a proposed extradition law.
of autonomy.
The bill would allow Hong Kong to detain
The policy has helped preserve Hong
and transfer people wanted in countries
Kong’s civil service, independent courts,
and territories with which it has no formal
freewheeling press, open internet and
extradition agreements, including Taiwan
other features that distinguish it from the
and the Chinese mainland.
Chinese mainland.
The unusually broad opposition to the
But that autonomy, guaranteed under a
extradition bill came amid a series of
mini-constitution known as the Basic Law,
government moves to deepen links
expires in 2047. The joint signed
between southern mainland China and
declaration does not state what will
Hong Kong.
happen in 2047 after that agreement
Opponents of the bill question the fairness
officially ends.
and transparency of the Chinese court
Well before Hong Kong is set to lose its
system and worry about Chinese security
unique status, the Basic Law has been
forces contriving charges.
weakened as China’s Communist Party and
Human rights groups have repeatedly
its security apparatus increasingly
cited the alleged use of torture, arbitrary
encroach into Hong Kong.
detentions, forced confessions and
problems lawyers in China.
ENVIRONMENT
have helped to conserve the species and
1. Golden langur to get fruits of maintain their population.
MGNREGA in Assam Why in News?
About Golden Langurs For the first time in India, Bongaigaon
They are ENDANGERED primate species, district authorities have used MGNREGA to
living in western Assam and foothills of conserve the golden langur.
Bhutan. Labour and funds will be used to plant
They play a vital role in the dispersion of grow fruit plants to reduce the food
seeds and pollination which helps to shortage for langurs.
maintain the forest ecosystem. The MGNREGA (Mahatma Gandhi National
Rural Employment Guarantee Act)
provides a legal guarantee for one hundred
days of employment in every financial year
to adult members of any rural household
willing to do public work-related unskilled
manual work at the statutory minimum
wage.
The Ministry of Rural Development (MRD),
They are found in Manas National park and
Govt of India is monitoring the entire
in nearby forests. Communities in
implementation of this scheme in
KOKOIJANA reserve forest, near to
association with state governments.
Chakrashila Wildlife Sanctuary, Assam,
2. Sportswear giant set to tap Indian competitiveness, to promote development
firm’s PET project to cut virgin of a sustainable mobility eco-system,
promote development of Alternative
plastic use Energy Vehicles & achievement of
What are PET plastics? leadership in innovative technology.
Polyethylene terephthalate (PET or PETE) What is CII?
is a general-purpose thermoplastic (plastic CII is a non-government, not-for-profit,
which can be reused by heating and industry-led and industry-managed
cooling) polymer which belongs to the organization, playing a proactive role in
polyester family of polymers. India's development process.
Polyester resins are known for their Founded in 1895, India's premier business
excellent combination of properties such association has around 9000 members,
as mechanical, thermal, chemical from the private as well as public sectors,
resistance as well as dimensional stability. including SMEs and MNCs, and an indirect
Why in News? membership of over 300,000 enterprises
The sportswear manufacturer ADIDAS is from around 276 national and regional
establishing unit in Maharashtra which can sectoral industry bodies.
upcycle PET bottles to sportswear. CII works with Govt in policymaking and
The recycling units produce yarn from the provides businesses perspective.
PET bottles which in-turn will be used in What is India’s agenda on vehicles?
gear making. The government is planning to ban sale of
The firm established at Nasik, is expected internal combustion engine (ICE) three-
to convert 30 tonnes of PET bottles into wheelers by 2023 as well as of less than
yarn a day. 150 cc two-wheelers by 2025.
According to the United Nations, around India is jumping directly from Bharat Stage
300 million tonnes of plastic are produced IV (engine type) to Bharat Stage VI (engine
every year. Of this, eight million tonnes of which produces less sulphur). The
plastic waste ends up in the oceans; PET gestation period to move is very less for
bottles are the main contributors to plastic manufacturers.
waste globally and in India. Scheme for Faster Adoption and
India has best PET material collection rate Manufacturing of (Hybrid&) Electric
in India is nearly 80%, but a good portion Vehicles in India (FAME India) (under
of these bottles are down cycled (i.e., ministry of heavy industries and public
reused for secondary use), eliminating the enterprises) is already in place for the
possibility of further recycling. promotion of electric vehicles.
The upcycling process consumes 86% less The Centre launched the EV@30 campaign
water and 75% less energy than to set a collective aspirational goal for all
conventional manufacturing. Electric Vehicles Initiative (EVI) members
to have EVs contribute to 30 percent of all
vehicle sales by 2030.
3. SIAM, CII call for a practical road Why in News?
map for electric vehicles CII and SIAM have asked government to
What is SIAM? step up win-win and realistic targets in
The Society of Indian Automobile automobile sector. The targets hurt the
Manufacturers (SIAM) is a not for profit industry which is in profit.
apex national body representing all major Rather than gazing up targets, both have
vehicle and vehicular engine asked Govt to bring behavioral changes in
manufacturers in India. people to adopt electric vehicles, which
SIAM focuses on several areas like to isn't the case now.
improve Indian automotive industry’s
They have asked for a well laid out 5. How much plastic you consume in a
roadmap for an ambitious EV rollout over week
a practical time frame along with an
integrated plan for setting up the
necessary infrastructure across the length
and breadth of the country, in consultation
with all stakeholders.
PIB Analysis
1. World Environment Day 92 percent of people worldwide do not
breathe clean air.
Why in news? Air pollution costs the global economy $5
World Environment Day 2019 will be trillion every year in welfare costs
hosted by China with a theme of “Air Ground-level ozone pollution is expected
Pollution”. to reduce staple crop yields by 26 percent
Air pollution is the biggest environmental by 2030.
health risk of our time. Airborne pollutants India’s Action Plan: India has formulated
are responsible for about one third of and launched the National Clean Air
deaths from stroke, chronic respiratory Programme (NCAP). The objective of NCAP
disease, and lung cancer, as well as one is comprehensive plan for prevention,
quarter of deaths from heart attack. Air control and abatement of air pollution
pollution is also fundamentally altering besides augmenting the air quality
our climate, with profound impacts on the monitoring network. The tentative
health of the planet. national level target is reduction of PM2.5
Some Air Pollution Facts and PM10 concentration by 20% – 30% by
2024.The focus of this year WED would be
on the identified 102 Non-attainment Alignment of JSS course and curriculum to
cities. National Skill Qualification Framework
What is Non-attainment of cities? (NSQF) to standardize training
Non-attainment cities are those which are Decentralization of powers for JSSs- giving
consistently showing poorer air quality more accountability and independence to
than the National Ambient. These include district administration
Delhi, Varanasi, Bhopal, Kolkata, Noida, To identify and promote traditional skills
Muzaffarpur, and Mumbai. in the district through skilling / upskilling.
Economy
1. Full disclosure: On SEBI norm for This spate of defaults, which may well be a
financial disclosure sign of the turning of the credit cycle in the
broader economy, may have forced SEBI to
Introduction
crack the whip on credit rating agencies.
Amidst the rising number of defaults by
In a circular SEBI laid down a new
companies, the chief markets regulator is
standard framework for financial
taking the fight to what it thinks is the
disclosure by credit rating agencies that it
enemy: ratings agencies.
believes will enhance the quality of
Mandatory disclosure
information made available by these
The Securities and Exchange Board of
agencies to investors.
India has asked credit rating agencies in
Notably, the agencies will have to publish
the country to, clearly state the
information on how their performance in
“probability of default” of the instruments
the rating of debt instruments compares
they rate for the benefit of investors.
with a benchmark created in consultation
There have been a record 163 downgrades
with SEBI.
of debt instruments this year, according to
The regulator believes this will help
data released by Prime Database this
investors to better gauge the performance
week. This is more than double the
of credit rating agencies.
number of defaults over the whole of last
Inherent flaws
year.
SEBI’s aggressive regulatory approach With inflation well under the benchmark
seems to suggest a certain disappointment figure of 4%, market expected a deep rate
with credit rating agencies, which may not cut or atleast a rate cut upto 50 basis point.
be unfounded. There is enough in the latest policy to
They have been caught napping on several indicate that the RBI’s focus is now on
occasions, including during the recent growth.
default by Infrastructure Leasing & The change of stance to ‘accommodative’
Financial Services on its debt from ‘neutral’ and the setting up of an
commitments. internal working group to review the
They are also seen by many as being more existing liquidity management framework,
loyal to companies whose instruments all clearly point to a central bank that is
they rate rather than to investors who not only listening to the demands of the
provide precious capital. These concerns key stakeholders in the economy, but also
need to be addressed. acting on them.
SEBI’s attempt seems to be to align ratings Interest rate transmission
methodologies with global best practices. The one area where the RBI has some
The suggestion to revise the method of work to do is in the transmission of rates.
computing default rates and the precise By its own admission, only 21 of the
definition of terms that raters should use cumulative 50 basis points rate cut
in describing a client’s liquidity position — effected by the RBI in the February and
strong, adequate, stretched and poor — April policies has been passed on to
are aimed at sharpening disclosure and borrowers by banks.
leaving little room for raters to be The excuse from banks, at least in the last
ambiguous. few months, was that liquidity was tight
What is not clear, though, is how the new and so deposit rates could not be cut.
framework will effectively resolve the However, liquidity has considerably
conflict of interest issue that plagues the improved in the last week, and more so
rating industry. with the new government loosening the
The issuer-pays model where the ratings purse strings. There cannot be any more
agency is paid by the issuer of the excuses from banks to not pass on the cuts
instrument that it rates is not a healthy fully.
one. Other measures
Conclusion The RBI’s decision to do away with its
But the problem is that a viable alternative charges on RTGS/ NEFT (Real Time Gross
is yet to be proposed. Settlement System/ National Electronic
The bottomline is that the poor track Funds Transfer) transactions is welcome
record of credit rating agencies is known provided it can, again, ensure that banks
to most investors and is appropriately pass on the benefit to customers.
discounted by market participants. The central bank has also proposed
measures such as a reduction in the
2. No surprises: on RBI's repo rate cut leverage ratio under Basel norms for
Introduction banks, which will increase their lendable
There were no surprises in the second bi resources.
monthly monetary policy announcement The projected growth rate for this fiscal
by the Reserve Bank of India. A 25 basis has been lowered to 7% from the 7.2%
point cut was widely expected, and the RBI projected in April, and the first-half growth
delivered that. is estimated at 6.4-6.7%, which by itself
Dovish policy (Policy appears ambitious given the current
trends in the economy.
Conclusion
With the RBI having done its bit, the focus value puts a floor on recovery from the
shifts to the Finance Ministry. resolution process.
There are tremendous expectations from Role of the government
the government over the next round of The RBI’s nuanced approach now is
reforms, backed as it is by a strong noteworthy.
mandate. There will be disincentives in the form of
The onus is now on the budget, to be additional provision of 20% to be made by
presented on July 5, to unleash the animal banks if a resolution is not achieved within
spirits again in the economy. 180 days and a further additional
provision of 15% if this extends to a year.
If that is the stick, the carrot is that they
3. Striking a balance: On stressed can write back half of the additional
assets provision once a reference is made to the
Introduction insolvency court and the remaining half
can also be clawed back by banks if the
The efforts of the Reserve Bank of India to
reference is admitted for insolvency
clean up the non-performing loans mess in
resolution.
the banking system suffered a setback in
This approach will give banks the freedom
April when the Supreme Court shot down
to explore all options before referring a
its circular of February 12, 2018, terming
defaulter to the insolvency process.
it ultra vires.
Version 2.0 of the circular, titled Instead of treating banks like truant school
children who need to be disciplined with
“Prudential Framework for Resolution of
Stressed Assets”, issued by the central the stick, the RBI has graduated to treating
bank on June 7, manages to retain the them like responsible adults who know
spirit of the original version even while what is good for them when it comes to
handling defaulters.
accommodating the concerns of banks and
borrowers. Of course, the RBI was forced to wield the
Balanced approach stick originally only because banks
The RBI has achieved a good balance resorted to ever greening loans and
pushing NPAs under the carpet. It is to be
between its objective of forcing a
resolution of stricken assets and giving hoped that they will now uphold the trust
banks the elbow room to draw up a placed in them by the RBI.
The central bank, anyway, retains the right
resolution within a set timeframe without
to direct banks to initiate insolvency
resorting to the bankruptcy process.
Banks will now have a review period of 30 proceedings in specific cases by drawing
on its powers under Section 35AA of the
days after a borrower defaults to decide on
Banking Regulation Act.
the resolution strategy, as compared to the
one-day norm earlier. Meanwhile, the government has to assess
what ails the insolvency resolution
They will also have the freedom to decide
whether or not to drag a defaulter to the process, which has got bogged down in the
case of several high-profile defaulters,
insolvency court if resolution does not take
place within 180 days of default. Banks beginning with Essar Steel. The delays in
had no such option earlier. resolution are not good optics, and the
By making an Inter-Creditor Agreement gaps that defaulters typically use to
subvert the process must be plugged.
between lenders mandatory, the RBI has
ensured that they will speak in one voice, The road ahead
while the condition that dissenting lenders Ultimately, the RBI’s efforts will be
negated if banks, put off by the long delays
should not get less than the liquidation
in the resolution process, choose not to
refer cases to the insolvency court.
4. U.S. is shooting itself in the foot on “development, financial and trade needs of
GSP developing countries.”
Internationally, the legal basis for the GSP
Introduction
programme is found in the Enabling Clause
After targeting China and Mexico,
(EC).
President Trump has declared a trade war
Enabling Clause
on India.
It is a platform established under the
Unsurprisingly, the U.S. decided to
international trade regime of the World
terminate India’s designation as a
Trade Organization (WTO) for developed
‘beneficiary developing country’ under the
countries to offer preferential trade
Generalized System of Preferences (GSP)
treatment on a non-reciprocal basis to
effective June 5, 2019.
products originating in developing
About GSP
countries.
Under GSP, the U.S. allows preferential
The reason for the non-reciprocal
duty-free entry for thousands of products
arrangement was that the Enabling Clause
from about 120-plus designated
means to provide differential and more
beneficiary countries.
favorable treatment with a view to
Thus, products from these countries enter
incentivizing developing countries and
the U.S. duty-free, provided the beneficiary
promote their fuller participation in global
developing countries meet the eligibility
trade.
criteria.
Will hurt U.S. economy
The U.S. Trade Representative’s (USTR)
The Trump administration’s withdrawal of
office-established eligibility criteria
India’s GSP benefits is a violation of the
includes affording worker rights,
trade terms.
prohibiting child labour, ensuring
Unfortunately, the withdrawal is not based
occupational safety, etc.
on any criterion that is to be applied to
India, as a developing country, enjoyed
other nations.
special trade benefits which allowed duty-
Indeed, it is intended as a sanction
free entry of Indian goods worth $5.6
towards India and Turkey, thus making the
billion into the U.S.
U.S. moves a positive violation of the WTO
Timeline of the dispute
norms.
The seeds for this discord were sown way
In reality, withdrawing India from the list
back when the Trump administration
of GSP beneficiaries will also hurt the U.S.
introduced steel and aluminum tariffs
First, a trade war with India will
under Section 232 of the Trade Expansion
reportedly cost American businesses over
Act of 1962, citing national security
$300 million in additional tariffs.
reasons.
Second, America’s belligerent stance has
India was one of the countries affected by
not gone well with most trading partners.
the U.S. steel and aluminum tariffs. India
Operationally, in order to determine
retaliated immediately and announced
whether trade terms of other countries are
tariffs on U.S. importations into India
fair, America uses the opinions of its
worth about $240 million although these
industries and corporations.
are yet to take effect.
Thus, arguably, America puts itself in a
With a move to teach India a lesson, the
position wherein its trade posture is an
U.S. had been threatening to withdraw
echo of the industry’s position rather than
India’s benefits from the GSP system.
taking a reasoned articulated stance. India
The GSP preferential trade term forms a
may well decide to take this as a dispute to
part of the trade obligation of the U.S., and
the WTO.
is designed to positively impact the
Under such circumstances, India is likely
to find support from other similarly
situated developing countries. There may The world trading system is not based on
be support to challenge this and other the leadership of any one country. It is a
unilateral U.S. actions that have come to mechanism to work with trade partners.
personify the imbalances of global trade. The U.S. action, unfortunately, seeks
Conclusion leadership among its trading partners and
that hurts America first and its allies next.
International Relations
policy achieves what it is supposed to —
1. Tweaking visa norms allows the gathering of social media
Introduction information that results in the denial of a
On May 31, 2019, U.S. Department of State visa for an applicant who genuinely
introduced a change in online visa forms presents a security threat.
for immigrant and non-immigrant visas However, the bluntness of the policy and
requiring applicants to register their social its vast scope raise serious concerns
media handles over a five-year period. The around civil liberties including questions
policy does not cover those eligible for the of arbitrariness, mass surveillance,
visa waiver programme and those privacy, and the stifling of free speech.
applying for diplomatic visas and certain
categories of official visas.
How did it come about? 2. A clear arc from India to Nigeria
The policy is part of U.S. President Donald Introduction
Trump’s intent to conduct “extreme As leaders of India and Nigeria began their
vetting” of foreigners seeking admission respective second terms, there is an urgent
into the U.S. need to improve ties between the two
In March 2017, Mr. Trump issued an nations given the amount of substance and
Executive Order asking the administration potential linking the two countries and
to implement a programme that “shall aspirations of their people.
include the development of a uniform Diverse trade
baseline for screening and vetting First, Nigeria being Africa’s most populous
standards and procedures for all country (191 million) and economy ($376
immigrant programs.” billion) as well as the world’s sixth largest
How will it impact India? oil exporter (about 2 million barrels per
Most Indians applying for U.S. visas will be day) is evidently important to us.
covered by this policy. Over 955,000 non- According to the latest Indian Department
immigrant visas and some 28,000 of Commerce statistics, Nigeria is India’s
immigrant visas were issued to Indians in largest trading partner in Africa (19th
fiscal year 2018. So at least 10 lakh Indians overall) with total trade estimated at $13.5
— and these are just those who are billion in 2018-19. As official Nigerian data
successful in their visa applicants and not show, thanks to our booming oil imports,
all applicants — will be directly impacted India is Nigeria’s largest trading partner.
by the policy. For the same reason, Nigeria enjoys 4:1
What lies ahead? surplus in bilateral trade.
The new policy is expected to impact 14 Nevertheless, it is still a sizeable market
million travelers to the U.S. and 700,000 for India’s manufactured exports, such as
immigrants worldwide according to the (2018-19 figures) miscellaneous
administration’s prior estimates. In some machinery ($500 million), vehicles ($495
individual cases it is possible that the visa million), pharmaceutical products ($447
million), textile items ($299 million), iron accomplished. Mr. Buhari, who was trained
and steel articles ($152 million) and in India as a military officer and holds this
plastics ($109 million). country in high esteem, attended the third
In contrast to the stagnation in India’s India-Africa Forum Summit held in
global exports, its exports to Nigeria October 2015 and met Mr. Modi for
surged by 27% last year to reach around bilateral talks. Then Vice President Hamid
$2,880 million. Indian investments in Ansari’s bilateral visit in September 2016
Nigeria are estimated at around $15 billion broke the hiatus in top-level contact since
with a further $5 billion in the pipeline. Manmohan Singh’s Nigeria visit, as Prime
There are at least 180 Indian companies Minister, in 2007.
operating in Nigeria with pharmaceuticals, Bilateral ties have not drawn
steel, power, retailing, fast-moving commensurate proportion of the resources
consumer goods and skilling as their offered by India to its African partners
mainstay. Approximately 50,000 Indians largely due to some systemic issues.
reside in Nigeria, some of them for Defence cooperation has been mostly
decades. Most of them are professionals, episodic and training oriented.
such as engineers, accountants, bankers, Way Forward
trainers and health-care experts. As the two leaders of these countries begin
Success despite apathy their respective second innings, they need
While all these facts go to underline the to give a push to India-Nigerian ties sooner
substantive nature of India-Nigeria ties, rather than later. With oil and other
they also point to two important commodities becoming a seller’s market,
contextual factors. First, all these an early summit between the two leaders
achievements are the outcome of valiant is an obvious imperative.
attempts by individual stakeholders with It could evolve a multi-pronged strategy to
scant official encouragement or support. leverage evident economic
For instance, some simple tweaking in our complementarities in sectors such as
visa procedure can help thousands of hydrocarbons, infrastructure, institution-
Nigerians avail of our medical and building, defence and agriculture. If
educational facilities, benefiting all sides handled deftly and with political will, it
and creating huge people-to-people could usher in an India-Nigeria economic
goodwill. Despite the encouraging synergy that has been untapped for some
numbers, the two governments have not decades.
yet been able to facilitate direct
connectivity of air travel, banking and
shipping — steps which could have 3. Foreign policy challenges five years
promoted the ease of doing bilateral later
business. Introduction
Second, enormous potential still waits to
As Prime Minister Narendra Modi begins
be leveraged in such sectors such as his second term, the world looks more
upstream hydrocarbons (despite India
disorderly in 2019 than was the case five
being the largest buyer of Nigerian crude), years ago.
agriculture, health care and skilling. U.S. President Donald Trump’s election
Despite their growth, Indian exports to and the new dose of unpredictability in
Nigeria are still around a quarter of
U.S. policy pronouncements; the trade war
China’s. between the U.S. and China which is
Much potential becoming a technology war; Brexit and the
Although bilateral ties have had to face
European Union’s internal preoccupations;
strong headwinds during the past five
erosion of U.S.-Russia arms control
years, more could have been
agreements and the likelihood of a new This present situation necessitates using
arms race covering nuclear, space and multi-pronged diplomatic efforts and
cyber domains; the U.S.’s withdrawal from being generous as the larger economy. It
the Iran nuclear deal and growing tensions also needs a more confident and
between Saudi Arabia and Iran are some of coordinated approach in handling
the developments that add to the neighborhood organizations — SAARC,
complexity of India’s principal foreign BIMSTEC, Bangladesh, Bhutan, India, Nepal
policy challenge of dealing with the rise of Initiative, the Bangladesh-China-India-
China. Myanmar Forum for Regional Cooperation,
Redefining neighborhood the Indian Ocean Rim Association.
As in 2014, in 2019 too, the central This should be preferably in tandem with
government began his term with a bilateralism because our bilateral relations
neighborhood focus but redefined it. In provide us with significant advantages.
2014, all South Asian Association for With all our neighbors, ties of kinship,
Regional Cooperation (SAARC) leaders had culture and language among the people
been invited for the swearing-in. However, straddle boundaries, making the role of
the SAARC spirit soon evaporated, and governments in States bordering
after the Uri attack in 2016, India’s stance neighbors vital in fostering closer linkages.
affected the convening of the SAARC This means investing attention in State
summit in Islamabad. Since an invitation to governments, both at the political and
Pakistan was out of the question, leaders bureaucratic levels.
from the Bay of Bengal Initiative for Multi- Managing China and the US :
Sectoral Technical and Economic China will remain the most important
Cooperation (BIMSTEC) countries with issue, as in 2014. Then, Mr. Modi went
Kyrgyzstan, added as current Shanghai along with the old policy since the Rajiv
Cooperation Organisation chair, Gandhi period that focused on growing
highlighted a new neighborhood emphasis. economic, commercial and cultural
Yet the government will find it difficult to relations while managing the differences
ignore Pakistan. Despite good planning on the boundary dispute through dialogue
there is always the risk of unintended and confidence-building measures, in the
escalation as Balakot showed. In the expectation that this would create a more
absence of communication channels conducive environment for eventual
between India and Pakistan, it appears negotiations.
that the U.S., Saudi Arabia and the United Underlying this was a tacit assumption
Arab Emirates played a role in ensuring that with time, India would be better
the quick release of the IAF pilot, Wg. Cdr. placed to secure a satisfactory outcome. It
Abhinandan Varthaman, thereby defusing has been apparent for over a decade that
the situation. the trajectories were moving in the
Unless the present government wants to opposite direction and the gap between
outsource crisis management to external the two was widening. For Mr. Modi, the
players, it may be better to have some kind Doklam stand-off was a rude reminder of
of ongoing dialogue between the two the reality that the tacit assumption
countries. This could be low-key and behind the policy followed for three
discreet, at whatever level considered decades could no longer be sustained.
appropriate, as long as no undue The informal summit in Wuhan restored a
expectations are generated. A policy in- semblance of calm but does not address
between diplo-hugs and no- the long-term implications of the growing
communication provides both nuance and gap between the two countries.
leverage. Meanwhile, there is the growing strategic
rivalry between the U.S. and China
unfolding on our doorstep. We no longer coordination among the different
have the luxury of distance to be non- ministries and agencies than has been the
aligned. At the same time, the U.S. is a case so far.
fickle partner and never has it been more Our record in implementation projects is
unpredictable than at present. patchy at best and needs urgent attention.
In 2014, Mr. Modi displayed unusual The focus on the neighbourhood is
pragmatism in building upon a certainly desirable, for only if we can
relationship that had steadily grown under shape events here can we look beyond.
the previous regimes, after the nuclear However, the fact that China too is part of
tests in 1998. Despite this, a number of the neighbourhood compounds Mr. Modi’s
issues have emerged that need urgent foreign policy challenges in his second
attention. As part of its policy on term.
tightening sanctions pressure on Iran, the Employing external balancing to create
U.S. has terminated the sanctions waiver conducive regional environment is a new
that had enabled India to import limited game that will also require building a new
quantities of Iranian crude till last month. consensus at home.
The Generalised System of Preferences
scheme has been withdrawn, adversely
impacting about 12% of India’s exports to 4. The importance of being neighborly
the U.S., as a sign of growing impatience Introduction
with India’s inability to address the U.S.’s The present government has acted swiftly
concerns regarding market access, tariff to pursue its foreign policy priorities.
lines and recent changes in the e- Focused on strengthening India’s place in
commerce policy. the world, it has begun by shoring up the
Another critical issue is the threat of country’s position in the immediate
sanctions under the Countering American neighbourhood. This message emanated
Adversaries Through Sanctions Act from Prime Minister Narendra Modi’s
(CAATSA), were India to proceed with the visits to the Maldives and Sri Lanka, and
purchase of the S-400 air and missile External Affairs Minister S. Jaishankar’s
defence system from Russia. trip to Bhutan.
Other potential tricky issues could relate Shift towards BIMSTEC
to whether Huawei, which is currently the Ties with South Asian neighbours were a
prime target in the U.S.-China technology priority even earlier, as seen in the
war, is allowed to participate in the 5G invitation extended to SAARC leaders to
trials (telecom) in India. The reconciliation attend Mr. Modi’s swearing-in ceremony in
talks between the U.S. and the Taliban as 2014. After that there were some
the U.S. negotiates its exit from difficulties. India’s relations with Pakistan
Afghanistan raise New Delhi’s soured, while China continued to expand
apprehensions about the Taliban’s return, its footprint in Nepal, the Maldives, Sri
constituting another potential irritant. Lanka and Pakistan.
External balancing However, India’s cooperation with
In a post-ideology age of promiscuity with Bangladesh, Bhutan, Afghanistan and
rivalries unfolding around us, the harsh Myanmar showed tangible progress. As a
reality is that India lacks the ability to result, attention was consciously shifted
shape events around it on account of from SAARC to BIMSTEC, thereby giving an
resource limitations. These require eastward shift to India’s neighbourhood
domestic decisions in terms of expanding policy. In 2016, BIMSTEC leaders were
the foreign policy establishment though invited to the BRICS summit in Goa.
having a seasoned professional at the top BIMSTEC leaders also attended Mr. Modi’s
does help. We need to ensure far more swearing-in last month.
Three visits priority, but four subtle elements are being
A week thereafter, Mr. Jaishankar was in introduced in the policy matrix.
Bhutan holding comprehensive First, without always insisting on
discussions with his counterpart and the reciprocity, India may get into a proactive
Prime Minister. He also met King Jigme mode and adopt measures “to incentivise
Khesar Namgyel Wangchuck. The visit was cooperation in the neighbourhood”, as Mr.
perhaps meant to assess the current Jaishankar put it.
thinking in Thimphu about Chinese Second, India will prefer to work on quick
overtures to open diplomatic relations and impact projects that bring socio-economic
the border issue before Mr. Modi’s meeting benefits to the people.
with President Xi Jinping at the Shanghai Third, recognising its limited capabilities
Cooperation Organisation summit. New Delhi would have no objection in
Mr. Modi’s visit to the Maldives was forging a trilateral development
astutely designed to showcase that a partnership, involving India and Japan in a
dramatic turnaround has taken place in neighbouring country.
India-Maldives relations. Former Fourth, SAARC’s drawbacks have caused
Maldivian President Abdulla Yameen gave India’s conscious shift to BIMSTEC. Mr.
a blatantly pro-China tilt to his foreign Jaishankar explained that India sees a mix
policy. The new President Ibrahim Solih of “energy, mindset and possibility” in the
and the Majlis speaker reiterated the latter grouping.
Maldives’ commitment to its ‘India first The road ahead
policy’. The Majlis invited Mr. Modi to The government is moving in the right
deliver a special address. The President direction. It could also consider bringing
conferred the nation’s highest honour the Maldives into BIMSTEC, at least as an
"Rule of Nishan Izzuddeen" on Mr. Modi. observer. Finally, Mr. Jaishankar should
This visit demonstrated how India has visit other neighbours soon, particularly
begun to implement recent decisions to Bangladesh and Myanmar.
extend ample financial assistance, move
ahead with projects to be funded through a 5. Navigations in Bishkek
new $800 million Line of Credit, and focus Introduction
on people-centric welfare measures in At the 19th Shanghai Cooperation
accordance with the priorities of the Organization (SCO) summit in Bishkek,
Maldives. This is in sharp contrast with Kyrgyzstan, India will have to navigate
China’s approach of extending massive between two contradictory imperatives.
loans for mega infrastructure projects that While on the one hand it must act as a
end up in debt traps. willing partner of regional cooperation led
Mr. Modi’s visit to Colombo was prudent. It by China and Russia, on the other it must
conveyed India’s solidarity with Sri Lanka avoid being seen as a part of the ‘anti-
as the latter struggles to overcome the American gang’.
overwhelming effects of the Easter Sunday It could also be seen as a paradox that
attacks. Mr. Modi held discussions with all India wants to fight against terrorism
the main actors: the President, the Prime through a body that includes states that
Minister, the Leader of Opposition, and pose the biggest threats to Indian security.
Tamil leaders. President Maithripala Trade and terrorism
Sirisena reflected the nation’s view as he In Bishkek, Russia and Central Asian
publicly thanked Mr. Modi for a productive countries are likely to express broad
visit. support for China in its escalating tariff
Neighbourhood first fight against the U.S. India is equally
New Delhi has clearly indicated that the concerned about this trade war, but it is
neighbourhood will continue to be a
unclear whether it will join the others in Mr. Modi’s meeting with Russian President
slamming U.S. protectionism. Vladimir Putin is important to save the S-
New Delhi is seemingly confident of 400 contract deal against Washington’s
dealing with the U.S. without necessarily mounting threat to act under CAATSA.
supporting China. It is also notable that all India and Russia have an ambitious
SCO members barring India are economic agenda drawn up for 2019, and
enthusiastic supporters of the Belt and Mr. Putin might reiterate his invitation to
Road Initiative (BRI). Mr. Modi to be the chief guest at the
During the summit, terrorism is likely to Eastern Economic Forum in Vladivostok in
be approached from the angle of September. It would be a good opportunity
improving the situation in Afghanistan and for India to explore Russia’s Far East
not necessarily of curbing the terrorist region not just for developing economic
elements emanating from Pakistan. cooperation but also for exploring the
China is sure to offer its experiences of prospects of transferring skilled labourers
dealing with counterterrorism, and the to offset Chinese demographic threats in
deradicalisation measures it has taken in the region. Russia is also keen that India
Xinjiang. China’s achievement in joins the Arctic: Territory of Dialogue
expanding its high-speed rail network to Forum.
restive Xinjiang comes with enormous India seems committed to work within the
economic and security implications for SCO to develop a ‘cooperative and
Eurasia. China has also enhanced its sustainable security’ framework, to make
military projection capabilities to meet any the Regional Anti-Terrorist Structure more
potential crises beyond its western effective, and participate in efforts to bring
frontiers. about stability in Afghanistan. Even though
Kyrgyzstan is the latest to create an the regional aspirations of Central Asian
international near-border trade centre in countries contradict India’s goals, these
Alai district bordering China. If the countries back India’s proposal for a
regional countries switch to adopting the Comprehensive Convention on
Chinese railway track gauge of 1,435 mm, International Terrorism. Mr. Modi is
then China will be successful in uniting certain to bring up India’s resolve to fight
Eurasia to challenge a united Europe. As terrorism by drawing the SCO’s attention
the situation unfolds, China and Russia are to the attacks in Pulwama and Sri Lanka.
adopting a new era of global strategic But China would not like India to use the
partnership. Where India fits in is the SCO to name and shame Pakistan.
question. India may stick to its position on BRI, but
On the sidelines accelerating progress on the International
Prime Minister Narendra Modi’s meeting North-South Transport Corridor, the
with President Xi on the sidelines of the Chabahar Port, the Ashgabat Agreement
summit will be critical, especially as Mr. and the India-Myanmar-Thailand
Modi is now being guided by his new Trilateral Highway should be very much
External Affairs Minister. This meeting also on the cards.
comes after China’s decision to withdraw The Pakistan policy
its technical hold on listing Jaish-e- The India-Pakistan stalemate endures but
Mohammad chief Masood Azhar as a global the environment has changed a little since
terrorist at the United Nations Security India’s air strikes in Balakot. Pakistan
Council (UNSC). The key concern for the Prime Minister Imran Khan has been less
two leaders is the impact of the U.S.-China belligerent, but whether the Pakistani
trade war, but judging from the trends, military is taking tougher measures to
both sides seem to be gearing up for a big curb anti-India terror groups is not known.
settlement of pending bilateral issues.
Mr. Khan will have to demonstrate clearly Corridor for regional economic integration
if he wants Mr. Modi to give diplomacy a and security cooperation.
chance should they meet on the margins of The road ahead
the SCO meet. Mr. Modi might chart a new To be sure, none of the institutional-level
policy course in favour of normalising ties, measures including the joint SCO military
especially since India has scored a point exercises have so far entailed any
with Masood Azhar being designated as a satisfactory results in jointly fighting
global terrorist at the UNSC. against terrorism.
Pakistan places high hopes on the SCO to Nevertheless, the SCO is relevant for India
regulate key regional security issues to garner support for reforms of the UNSC
(Afghanistan and Kashmir) even though to make the latter more representative and
the SCO discourages bilateral disputes to effective. India has been lending support to
be raised. Its other agenda would be to sell the member countries’ candidatures for
the Gwadar Port as a potential passage to non-permanent membership of the UNSC
landlocked Central Asian states, besides for a long time.
promoting the China-Pakistan Economic
News on AIR
There has been substantial growth in e-
1. Benchmarking India's Payment payments by Government and also in
Systems digital infrastructure in terms of mobile
Why in news? networks.
RBI released the report on 'Benchmarking However, India needs to make more efforts
India's Payment Systems'. to decrease the volume of paper clearing
The report provides a comparative and increase acceptance infrastructure to
position of the payment system ecosystem promote digital payments.
in India relative to comparable payment
systems and usage trends in other major
2. Swachh Bharat has led to reduced
countries. ground water contamination-A
Highlights of the report: study by UNICEF
India is a "leader" in regulating costs of The Swachh Bharat initiative has led to
payments systems, number of debit cards reduced ground water contamination.
issued and automated teller machines. The substantial reductions may potentially
India is "strong" in areas like having be attributed to the improvement in
necessary laws and cash in circulation per sanitation and hygiene practices.
capita.
Supportive systems such as regular
monitoring and behaviour change
messaging, which have all been critical
aspects of the Swachh Bharat Mission
(Grameen), also helped reduce ground
water contamination.
About Swachh Bharat Mission:
To accelerate the efforts to achieve 4. Implementation of BS-6 emission
universal sanitation coverage and to put norms from 2020
focus on sanitation, the Prime Minister of The vehicular pollution which is 28 to 30
India, Shri Narendra Modi, launched the per cent of air pollution will be reduced
Swachh Bharat Mission on 2nd October, drastically after implementation of Bharat
2014. Stage (BS)-6 emission norms from next
The Mission Coordinator shall be year.
Secretary, Ministry of Drinking Water and Air quality has improved in the national
Sanitation (MDWS) with two Sub-Missions capital due to the concerted actions of the
– the Swachh Bharat Mission (Gramin) and government.
the Swachh Bharat Mission (Urban). Citing that in 2014 in the National Capital
The Mission aims to achieve a Swachh the number of poor air quality days was
Bharat by 2019, as a fitting tribute to 300 and it came down to 206 days in 2018.
Mahatma Gandhi on his 150th birth By implementing the BS-6 emission norms
anniversary. the air quality is expected to improve
further.
3. Heat Waves What are Bharat Stage norms?
Why in news? The Bharat Stage are standards instituted
Heat wave has intensified in several parts by the government to regulate emission of
of the country like Odisha, Maharashtra, air pollutants from motor vehicles.
and Telangana etc. The norms were introduced in 2000. With
What is a Heat Wave? appropriate fuel and technology, they limit
A Heat Wave is a period of abnormally the release of air pollutants such as
high temperatures, more than the normal nitrogen oxides, carbon monoxide,
maximum temperature that occurs during hydrocarbons, particulate matter (PM) and
the summer season in the North-Western Sulphur oxides from vehicles using
parts of India. internal combustion engines.
Heat Waves typically occur between March As the stage goes up, the control on
and June, and in some rare cases even emissions become stricter. Thus Bharat
extend till July. Stage VI norms are two stages ahead of the
The extreme temperatures and resultant present Bharat Stage IV norms in
atmospheric conditions adversely affect regulating emissions.
people living in these regions as they cause These norms are based on similar norms
physiological stress, sometimes resulting in Europe called Euro 4 and Euro 6.
in death. Differences between two stages
As such there is no universal definition for The extent of Sulphur is the major
heat wave. It is generally defined as a difference between Bharat Stage IV and
prolonged period of excessive heat. Bharat Stage VI norms.
Heat wave will be declared in hilly region BS-IV fuels contain 50 parts per million
when it exceeds 30 degree Celsius. (ppm) sulphur, the BS-VI grade fuel only
has 10 ppm sulphur. BS VI can bring PM in
diesel cars down by 80 per cent .
The new norms will bring down nitrogen This is a seasonal river, the main source of
oxides from diesel cars by 70 per cent and the water is from rain. The river basin lies
in petrol cars by 25 per cent. in the rain shadow region of Eastern Ghats
BS VI also makes on-board diagnostics and receives 500 mm average rainfall
(OBD) mandatory for all vehicles. OBD annually.
device informs the vehicle owner or the The major tributaries of the Penna are the
repair technician how efficient the systems Jayamangali, Kunderu and Sagileru from
in the vehicle are. the north, and Chitravathi, Papagni and
Cheyyeru from the south.
Local decentralised
water
Involvement Solutions Conservation
of all the
stakeholders suggested through
community
Participation
Creating
awareness of
inevitability of
Management conserving water
for survival of
Incentive economy and
based ecosystem
waterConserv
ation method
Significance: Concerns
India being a second largest importer of oil May have to face US wrath when favoring
from Iran. And, we have gas projects with Iran
Iran that can significantly contribute to our Russian challenges as it favors Iran
energy security. So, the sanctions on Iran Rupee convertibility issue in trade terms
by big fries in the world can invariably Inaccessibility through Chabahar Port
impact Indian economy.
Implication on Energy security
Indian Economy as Rupee Perspective
Impact Israel Angle
it being the second convertibility Petrochemical
On cultural largest importer of Issue. and steel plants
Ties. oil from Iran and MoUs on
such projects.
Chabahar Port
CAATSA interest
effect And access to
Central Asia and
Europe
Indo-Iran
relations
Iran Angle
As India cannot counteract the sanctions
US Angle and also, cannot favor it fully, neutral
Violation and withdrawal from Joint stand can help. Iran cannot be completely
Comprehensive plan of Action 2015( Iran trusted for its anti-terrorism claims and
Nuclear Deal) by Iran has incited US wrath peace stand, so, India should not
on Iran. completely back Iranian cause. At the same
Attack on US tankers escalated the time, US’s interest on Middle East should
tensions between them further. not be ignored.
Strained US-Russia reactions So, considering all the angles, India needs a
Israel Angle balanced as well as futuristic approach,
As the nation is instigating US and west to and for the time being it should portray its
attack Iran, there are chances of economic interest as the priority than
polarization on the lines of Iranian deeds. favouring any of the nations involved.
In that case, it would be difficult to prevent
economic and political crisis around the 3. National Education Policy draft
world. India will obviously be in a 2019
compromised condition if it happens. What is it?
Education policy that seeks to address
What should be India’s stand? challenges faced by Indian education
system.
The figure depicts what India’s stand
Significance:
should be as in balancing all the relations
As a draft it is released in public for
And maintain communication with both of review. And, it has already created a
the nations controversy on its three language formula
proposal as certain states are not happy
US with it. However, draft policy has other
proposals that strive to overcome the
limits of present education system in the
India country. And, the listed below are areas of
Other challenges.
IRAN 1. Accessibility
World
2. Equity
3. Affordability
4. Quality of their cultural and geographical
5. Accountability differences.
What was discussed? Expands the sphere of cooperation
Three Language formula of National among states in the country.
Education Policy Draft 2019