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Rau's

Mock
Interviews
2018
Rattu
Naveen
Interview Transcript
PANEL MEMBER - What is your name? which provided the first route for Punjabi emigration
abroad soon followed by independent migration.
N: Sir, Naveen Rattu.
Later 19th century, a Sikh contingent of soldiers was sent
PANEL MEMBER – So, what does it mean?
to London for Queen Victoria's Diamond Jubilee
N – It has no literal meaning, sir. celebrations. On the way back home, this Sikh contingent
PANEL MEMBER – So, you are from Chandigarh or returned by way of Vancouver. On their way, they saw
Jalandhar? fertile land and great rivers which could be used for
agriculture. This attracted a few of them, who deserted
N – Sir, I am from Chandigarh. But, I was born in Jalandhar
the army and stayed behind to try their fortunes of
and brought up in Chandigarh.
earning a livelihood. By the end of the 19th century or
PANEL MEMBER – Isn't it the best place to be brought up in? early 20th century, they became really prosperous and
N – I suppose yes, sir. I have only been to a few places, not this is something that has always attracted Punjabis to
many. But, somehow, Chandigarh feels very comfortable. It Canada.
is a good city to live in. Secondly, there has been a wave of student visas.
PANEL MEMBER – So, tell me something about yourself. Students have been going from Punjab to Canada,
because they feel that the education they will get in
N – Sir, I completed my schooling from Sri Guru Harkrishan
Canada will open up many avenues for them and they
Model School. Completed B. Tech in Computer Science in
would be able to make good career for themselves.
2015 and since then, I have been preparing for Civil
Services. PANEL MEMBER – Some of them have been exploited
also. What is it called “smuggling of migrants”? False
PANEL MEMBER – College?
documentation, especially from Jalandhar. Tell me, what
N – Sir, Chandigarh Group of Colleges. It is located in Mohali, is the difference between “smuggling of migrants” and
which is a city neighbouring Chandigarh. “human trafficking”?
PANEL MEMBER – Ok. So, tell us as to why the Punjabis are N – Sir, human trafficking is trading human beings for
keen to go abroad, particularly Canada? exploitation - physically or sexually - for the benefit of the
N – Sir, there have been a couple of reasons behind it. traders/traffickers. Smuggling of Migrants, is arranging
for human beings, illegal entry into a State of which that
First, the historical reason - The imperial government
person is not a national or resident.
started taking Indian labour to work in British colonies all
over the world since early 19th century. Punjab or Punjabis PANEL MEMBER – Very good. So, is this migration from
came into this emigration drive for labour requirement later Punjab a loss of agriculture?
in 1870s. It was mainly recruitment of Punjabis in army N – Sir, yes, to some extent it is having an impact, because
the younger work force is moving out of India and as a what we need to realise is, that in the name of human
result, either they are leaving agriculture or they are rights, we cannot actually allow people who do not care
getting into contract system, in which they lease their about the human rights of others and indulge into
land to other people, who can take up farming on their activities which are not good.
behalf and pay some fixed amount of money.
PANEL MEMBER–What about Kashmir? Kashimiris'
PANEL MEMBER – So, agriculture is in crisis in Punjab? human rights? What is your view?
M – Yes sir, agriculture has been in crisis in Punjab for a N – My view is that there have been isolated incidents.
few decades.
PANEL MEMBER- Isolated? Thousands of stone throwers
PANEL MEMBER – Is this the only reason? have been sent to prison and are now being released, but
they are protesting. What is wrong with protesting?
N – Sir, migration has been the smaller reason. The
bigger reason is, firstly, that the Punjabis are growing N – But, the protest is supposed to be peaceful, which is
cereal crops and we all know that cereal crops need a lot allowed by the Constitution of India. And also, the Right
of input and the price of inputs has been increasing day of Free Speech has its limitation, that you do not
by day. They are not able to earn money for themselves. jeopardise with the security of the state.
Secondly, since they are into cereal crops, especially rice
PANEL MEMBER – How is it jeopardising the security?
and wheat, they are dependent upon the government for
Anybody can say we need a separate state. It is a right till
MSP, and since MSP cannot be revised to a large extent,
the time there is no violence.
we can see only small changes in MSP.
N – The problem is with violence. I suppose, we cannot
PANEL MEMBER – So, MSP is now 1.5 times of production.
compromise with the unity and integrity of the country.
Will this do something to improve the condition of the
farmers? PANEL MEMBER- There are countries, like Spain, where
people openly give referendum to separate and the
N - Yes sir, this should do. I expect that it would play good
government accepts, that but can we accept Kashmir to
role, but at the same time, we all know that unless and
be separate?
until farmers go for crop diversification, they will not be
able to generate large amount of revenues. Yes, it would N- Sir, the difference is that even when this referendum
help them, but at the same time, it is for them to take crop was held in the Catalonia province, the Government of
diversification and mixed farming, so that they can Spain, was quick to jumping to suspending the
actually increase their income. Constitution and it actually defused that referendum.

PANEL MEMBER – Ok. Tell me why Khalistan has been in PANEL MEMBER – Very good.
the news recently? PANEL MEMBER –So, you are from Chandigarh. Tell me
N – Sir, it is because of the recent India visit of the something unique about Chandigarh, which we do not
Canadian President, Mr. Justin Trudeau. A couple of his find elsewhere.
cabinet leaders and some leaders in his own party have N – Sir, Chandigarh is unique in the sense that it is the first
been sympathetic to the Khalistan Movement and the planned city of India. Rock Garden has its own
Canadian Defence Minister, Mr. Harjit Singh Sajjan has significance as it brings awareness that the garbage or
been accused of supporting the Khalistan Movement. the waste materials can also be used.
PANEL MEMBER – Why did the Chief Minister of Punjab PANEL MEMBER - Now talking of this scrap metal, there is
meet the Canadian Prime Minister? He did not meet the a statue coming up in the honour of some legend. Where
Defence Minister. is it?
N – Because, he wanted to discuss and take up the issue N - Sir, if I am not wrong, I think you are talking about the
with the Prime Minister of Canada, that those people statue of Sardar Patel, that is coming up in Gujarat. It will
who are supporting the Khalistan Movement, they be made up of scrap metal.
should be getting ground in Canada.
PANEL MEMBER – What is its height, any idea?
PANEL MEMBER – The Sikhs in Khalistan are not indulging
N – Sorry sir. I am not aware of the height.
into any violence. Why should the Prime Minister of
Canada be involved? They have freedom of expression, PANEL MEMBER – There is another statue, that of Shivaji
human rights. coming up. Where is it?

N – I think it is not just human rights, the problem is that N – It is coming up in Maharashtra, sir.
the Khalistan Movement has been successfully PANEL MEMBER – Good. Now coming to computer
suppressed by the Government of India. We all know that science, tell me what is Artificial Intelligence?
it actually went upto 1985 and this is not long ago. It
N – Sir, Artificial Intelligence is a technology, where we are
means that before this Movement raises its head once
actually teaching the robots or the technology itself to
again, it should be suppressed.
learn from human behaviour, and to be able to improve
PANEL MEMBER – I feel that the interpretation of human itself without much of human help.
rights is different in India. It is more liberal. Do you
PANEL MEMBER – So, in this phone, do we have Artificial
believe in that?
Intelligence already?
N – To some extent, yes. Interpretation does matter, but
N – In a way, yes, sir. We all have this “Ok Google” which is
actually a way of Artificial Intelligence. It is a prototype of N – Sir, I feel that I don't think that the government
Artificial Intelligence. If you unlock your phone and say cannot actually take over the monetary policy and I also
“Ok Google”, it will actually listen to your command and believe that the government wants to play a role in it.
try to bring about the best results. There should not be anything wrong with it, because
ultimately it is the government who is responsible to the
PANEL MEMBER – Ok. Have you heard of Professor
people, even for inflation.
Hawkins? What are his views?
PANEL MEMBER – What is the voting pattern? Who has
N – Professor Hawkins is not very enthusiastic about
the majority?
Artificial Intelligence.
N – I can't really recall the voting pattern. The
PANEL MEMBER – But you are very keen, the way you are
government has the upper hand.
saying this?
PANEL MEMBER – No, the Governor of the Reserve Bank
N – I partially agree with him, because when all these
of India has the veto now. Ok, what is Inclusive Growth?
people are developing this technology, they also make
sure that this technology cannot take over us. N – Sir, Inclusive Growth is a way of growth where all the
people or most of the people get benefits of growth.
PANEL MEMBER – Is it really possible? Look at that Blue
Whale game. Children are committing suicide. How can PANEL MEMBER – All the people, not most.
you prevent?
N – Yes sir, all the people.
N – Sir, there is something called cognitive behaviour,
PANEL MEMBER – And what about region? Is it all parts of
cognitive computing, where actually human being is in
the country also?
the ultimate command of these things.
N - Yes sir, all parts.
PANEL MEMBER – What about hacking? The Artificial
Intelligence will increase that? PANEL MEMBER – So, you were born in Jalandhar and
brought up in Chandigarh. What is common between
N – Sir, hacking is a phenomenon, anyway. I suppose
Sarhind and Fatehgarh Sahib?
once these Artificial Intelligence devices will be
architectured, they will make sure that they are not easy N – Fathehgarh Sahib is a district and Sirhind is a town.
to hack. There is no such thing that is unhackable. Sirhind, comes from Sar - i – Hind, meaning the Frontier
of Hind, as Mughal invaders saw it as the gateway to
PANEL MEMBER – Ok. I like your confidence. Tell me what
Hindustan. What connects the two is that Sirhind is the
is MPC?
old name of Fatehgarh Sahib.
N – Sir, it is “Monetary Policy Committee”.
PANEL MEMBER – Ok. So you play lawn tennis? There are
PANEL MEMBER – Good. What is the purpose of this two “Yannicks” in tennis, one is international and the
Committee? There are so many Committees and other one is national.
Commissions.
N – I don't know, ma'am.
N – The purpose of MPC is to review the monetary policy
PANEL MEMBER – Yannick Noah and Yannick. (Indian)
of India in three terms. One is in the short term, second is
medium term and the third one is long term. N – I don't know, ma'am.

PANEL MEMBER – But do we need a Committee for this? PANEL MEMBER – Who is the master of clay?

N – Yes Sir. Because the government wanted to make it N – Rafael Nadal.


more representative. PANEL MEMBER – And what is his ranking?
PANEL MEMBER – Representative or to have more N – I can't recall the latest ranking.
control over the Reserve Bank of India?
N – Sir, these are two statements that can be counted?
PANEL MEMBER – So, what is your view?
focus
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TABLE OF CONTENTS

Part ONE LAW COMMISSION ON FREEDOM OF MATRIMONIAL


ALLIANCES #REPORT #BILL #SOCIAL ISSUE 22

Current Affairs Analysis PROVISIONS UNDER NIRBHAYA FUND

#POLICY #SOCIAL ISSUE #GOVERNANCE 23

02
INTERNATIONAL RELATIONS 25
# GS Paper (Prelims) & GS Paper II (Main)
ECONOMIC DEVELOPMENT
VISIT OF IRANIAN PRESIDENT
# GS Paper (Prelims) & GS Paper III (Main)
# BILATERAL RELATIONS 02
FUGITIVE ECONOMIC OFFENDERS BILL 2018
UNITED ARAB EMIRATES (UAE)
#BILLS 25
# BILATERAL RELATIONS 04
NATIONAL FINANCING REPORTING AUTHORITY
INDIA AND OMAN
#INSTITUTION 27
# BILATERAL RELATIONS 06
DRAFT NATIONAL AUTO POLICY
PALESTINE
#POLICY #MANUFACTURING 29
# BILATERAL RELATIONS 08
CORRUPTION PERCEPTION INDEX
VISIT OF CANADIAN PM
# INDEX 32
# BILATERAL RELATIONS 09
AN ANATOMY OF PNB FRAUD CASE
LEMOA AND COMBATANT COMMANDS
#FINANCE AND BANKING 35
# BILATERAL RELATIONS 12
LINKING SWIFT TO CORE BANKING BECOMES
CRISES IN MALDIVES
MANDATORY FOR BANKS
# NEIGHBOURHOOD 12
# FINANCE AND BANKING 36
ASHGABAT AGREEMENT
PORT LOGISTICS: ISSUES AND CHALLENGES IN INDIA
# INTERNATIONAL 14
# INFRASTRUCTURE 37

CRISIL INCLUSIX

#INDEX #GROWTH AND DEVELOPMENT 38

16 AMENDMENT IN SMALL SAVINGS ACT

#ACT #SCHEME 41
CONSTITUTION, POLITY AND GOVERNANCE OPENING OF COAL MINES FOR PRIVATE SECTOR
# GS Paper (Prelims) & GS Paper II (Main) #INDUSTRY 43
ELECTORAL BONDS – AN ANALYSIS NATIONAL PRODUCTIVITY COUNCIL
#ELECTIONS #REFORMS #GOVERNANCE 16 #INSTITUTION 44
SC ON DECLARING SOURCES OF INCOME THE CHIT FUNDS (AMENDMENT) BILL, 2018
#ELECTIONS #REFORMS #GOVERNANCE 18 #BILL 45
COMMERCIAL DIVISION BENCH THE BANNING OF UNREGULATED DEPOSIT SCHEMES
#ACT #JUDICIARY #GOVERNANCE 19 BILL, 2018 #BILL 46

ARBITRATION COUNCIL OF INDIA IN SHORTS 46


#ACT #COMMITTEE #STATUTORY BODY 20
HUNAR HAAT 46 SUPER BLUE MOON

WOMEN ENTREPRENEURSHIP COUNCIL 47 # SPACE 59

CIRCLE RATES 47 NANO-TECH TO TREAT CANCER

DOMESTIC CONTENT REQUIREMENT 47 # NANOTECHNOLOGY #HEALTH 60

MINIMUM EXPORT PRICE 47 MRI MACHINES

NORTH-EAST INDIA’S FIRST ‘CENTRE FOR AGRICULTURE’47 #BIOTECHNOLOGY 61

TOTAL EXPENSE RATIO (TER) 47 UNAPPROVED ANTIBIOTICS SOLD IN INDIA

#HEALTH 62

HUMAN EGGS IN LAB

#BIOTECHNOLOGY 63
49 TRANSFORMATION OF SCIENCE AND TECHNOLOGY

SOCIETY AND SOCIAL JUSTICE #ECONOMIC SURVEY 64

# GS Paper I & GS Paper II (Main)

SUPREME COURT ON HONOUR KILLING

# SOCIAL ISSUE 49 68
GRADUATES FROM IIT, NIT TO TEACH IN RURAL AREAS

#SOCIAL JUSTICE # EDUCATION 49


GEOGRAPHY, ENVIRONMENT, BIODIVERSITY &
INCREASING FEMINISATION IN AGRICULTURE DISASTER MANAGEMENT
# RIGHTS 49 # GS Paper (Prelims) and GS Paper I & III(Main)
HEALTH INDEX REPORT TIGER DIPLOMACY
# HEALTH 51 #CONSERVATION #NEIGHBOURHOOD RELATIONS 68
EKALAVYA MODEL RESIDENTIAL SCHOOL NATURE HELPING OLIVE RIDLEY TURTLES
# SOCIAL JUSTICE #EDUCATION 51 #CONSERVATION 69
NOROVIRUS MARGINAL EXPANSION OF SUNDARBANS MANGROVES
# HEALTH 52 #CONSERVATION 70
MEDICARE IS NOT HEALTHCARE # HEALTH EVOLUTIONARY HISTORY OF TROPICAL FOREST
(courtesy: The Hindu) 53 #CONSERVATION 71

MARGINAL INCREASE IN FOREST COVER

#CONSERVATION 72

55 WATER CONSERVATION

#CONSERVATION 75
SCIENCE & TECHNOLOGY TROUBLE BREWING OVER MYANMAR’S DAM

# GS Paper (Prelims) & GS Paper III (Main) #CONSERVATION #BILATERAL RELATIONS 75

RFID FOR E-WAY DUST MITIGATION PLAN MUST FOR FIRMS

#TECHNOLOGY 55 #AIR POLLUTION 76

HYPERLOOP IN MAHARASHTRA STRAW MANAGEMENT NOW MANDATORY IN PUNJAB

#TECHNOLOGY #TRANSPORTATION 56 #AIR POLLUTION 77

AURORA ELECTRONS OBSERVED CORAL REEFS RISK OF DISSOLVING DUE TO ACIDIC


OCEANS #WATER POLLUTION 77
#EARTH SCIENCE 57

GOOGLE LUNAR XPRIZE REMAINS UNCLAIMED

#SPACE 58
NEW EEL SPECIES # SPORTS 91

#CONSERVATION #DISCOVERY 79 LAUREUS WORLD SPORTS AWARDS

DISCOVERY OF TELUGU SPEAKING TRIBE # SPORTS 92

#CONSERVATION 79 THE RUSSIAN REVOLUTION

# BOOKS AND AUTHORS 92

80 93
HISTORY, HERITAGE & CULTURE ETHICS, INTEGRITY & APTITUDE
# GS Paper (Prelims) & GS Paper I (Main) # GS Paper IV (Main)

HOWRAH BRIDGE DHAMMA : CODE OF ETHICS 93

# MODERN INDIA 80 THOUGHTS FOR UNDERSTANDING (#THINKERS) 99

STONE TOOLS AND HISTORY OF HUMAN EVOLUTION

#ANCIENT INDIA 81

PRE-CHRISTIAN ERA ARTEFACTS EXCAVATED IN ODISHA


100
#ANCIENT INDIA 82

SHRAVANABELAGOLA CEREMONY GLOSSARY


#CULTURE 83
# Terms
TELANGANA’S SAMMAKKA-SARALAMMA JATARA
ENRICH YOUR CONCEPTS 100
# FESTIVAL # HISTORY AND CULTURE 83

DARA SHUKOH

# PERSONALITY # MEDIEVAL INDIA 85

KHAJURAHO DANCE FESTIVAL


Part TWO
# DANCE # CULTURE 86
CONTRIBUTORS ZONE

88 104

SECURITY LEAD ARTICLES


BANK FRAUDS
# GS Paper III (Main)
#BANKING AND FINANCE
LAMITYE 2018
MAHARSHI SHARMA, EDITORIAL TEAM
# MILITARY EXERCISE # BILATERAL RELATIONS 88
& EDUCATOR: DAILY NEWS SIMPLIFIED 104
ENCORE
THE INTERNATIONAL FORAY OF INDIAN NATIONAL
# MILITARY EXERCISE 89
RUPEE
FATF LISTING OF PAKISTAN
#ECONOMY
# SECURITY 89
HIRALAL MANDAL, EDITORIAL TEAM

& EDUCATOR 106

91 UNDERSTANDING EUTHANASIA

#POLITY AND SOCIETY


MISCELLANEOUS
NAWEED AKHTAR, EDITORIAL TEAM
WINTER OLYMPICS & EDUCATOR: DAILY NEWS SIMPLIFIED 111
127
114
ESSAY TYPE QUESTIONS
LEAD ESSAYS
for Mains GS Papers – I, II & III
DREAMS WHICH SHOULD NOT LET INDIA SLEEP

VAISHNAVI TIWARI (WW-1 BATCH) 114

VASU MOHAN (WW-1 BATCH) 116


143
CASE STUDIES
for Mains GS Paper IV: Ethics, Integrity & Aptitude
Part Three
practiCe ZONE

120
MULTIPLE CHOICE QUESTIONS (MCQS)
for Prelims GS Paper – I
Part ONE

Current
affairs
analysis
logical . simple . targeted
analysis & explanation
of all relevant news of the month
INTERNATIONAL RELATIONS
# GS Paper (Prelims) & GS Paper II (Main)

VISIT OF IRANIAN
The President of Iran, Dr. Hassan Rouhani visited India recently.
PRESIDENT The theme of the visit was "Towards prosperity through greater
connectivity”. Let us understand the impact of the visit.
# Bilateral relations
RECENT OUTCOMES

India and Iran exchanged 9 agreements and MoU’s during this visit, which included:
x Agreement for the Avoidance of Double Taxation.
MoU’s x Agreement on Prevention of Fiscal Evasion with respect to taxes.
Signed x Instrument of Ratification of Extradition Treaty.
x MoU on Cooperation in the field of Traditional Systems of Medicine.
x Lease Contract for Shahid Beheshti Port.

Both countries have decided to convene within this year the following meetings and dialogue
processes:
x Meeting of the India-Iran Joint Commission
Bilateral
x Dialogue between defence structures of both countries
Exchanges
x Dialogue between National Security Council of both countries
x Policy Planning dialogue
x Promote Parliamentary exchanges

COMPREHENSIVE AREAS OF COOPERATION

Î CONNECTIVITY

x India and Iran signed the lease contract for Shahid Beheshti port of Chabahar for an interim
period. It was signed between Port and Maritime Organization (PMO) of Iran and India’s Ports
Global Limited (IPGL).
Chabahar x The phase-1 of Chabahar port was successfully inaugurated in early December, 2017 with the
Port successful shipment of wheat assistance from India to Afghanistan through Chabahar Port.
x The ratification of the Trilateral Agreement between India, Iran and Afghanistan on
Establishment of International Transport and Transit Corridor and centres upon the formation and
implementation of Chabahar port.

India has conveyed its readiness to support the development of Chabahar- Zahedan Rail line and
New Rail line
finalise the technical parameters and financing options for the project in a time bound manner.

Î ECONOMIC AND ENERGY COOPERATION

x Iran has invited Indian private/public sector investments in Chabahar Free Trade Zone (FTZ).
Chabahar
FTZ x Indian companies have showcased interests in the field of fertilizers, petrochemicals and
metallurgy thereby taking advantage of cheaper resources available in Iran and easy connectivity

FOCUS | MARCH 2018 | RAU’S IAS 2


International Relations

through Chabahar port.

x India and Iran intend to move beyond traditional buyer-seller relationship and develop it into a
Energy
long term strategic partnership in energy cooperation.
Cooperation
x A reflection of this initiative is showcased in the joint development of Farzad B gas field in Iran.

x India-Iran have recognised the need to put in place an effective banking channel for business
transactions, and the permission for the Iranian Pasargad bank to open a branch in India was
Banking under advance consideration.
Cooperation x Currently, Indian and Iranian companies are dependent upon on non-Indian/Iranian banks
international banks to conduct banking tranasctions, which are influenced due to geo-politics of
western sanctions.

x India and Iran have agreed to set up a Joint Committee to ascertain a Rupee-Rial Arrangement
and Asian Clearing Union mechanism, therefore to establish functional payment channels.
x Sanctions were imposed on Iran by major powers due to which India and Iran were having
difficulty to trade in oil by using the major currencies such as US Dollar or Euro. To overcome this
Rupee-Rial
problem, India and Iran began to also conduct trade in their domestic currencies.
Mechanism
x After the sanctions were lifted, Iran has insisted to again trade in oil in major international
currencies, but India is insisting to continue the Rupee-Rial mechanism. Both countries are
negotiating on how to move forward with trading currencies, especially with the threat by Donald
Trump to re-impose sanctions.

India and Iran are negotiating the following agreements:


Economic 9 Double Taxation Avoidance Agreement
Agreements 9 Preferential Trade Agreement
9 Bilateral Investment Treaty

Î SECURITY COOPERATION

India and Iran have formed an institutional interaction between their respective National Security
Security
Councils on terrorism, security and related issues such as organised crime, money-laundering, drug
Dialogue
trafficking and cyber-crime.

India and Iran signed the following agreements to cooperate against trans-national crimes:
Security 9 Bilateral agreement on transfer of sentenced persons.
Agreements 9 Extradition Treaty.
9 Mutual Legal Assistance Treaty on Civil and Commercial Matters.

x India and Iran reiterated their strong commitment to combat terrorism in all its forms and
manifestations, and stressed that there can be no justification whatsoever for any act of terrorism.
x Both countries stressed that terrorism should not be associated with any religion, nationality or
Terrorism ethnic group. They urged an immediate end to all support and sanctuaries to terrorist groups and
individuals.
x This is seen as in-direct reference to Pakistan and its support to cross-border terrorism in India
and Afghanistan.

World x India and Iran endorsed UN General Assembly (UNGA) consensual resolution in 2013 derived
Against from the idea of Iran’s President ‘World Against Violence and Extremism’ (WAVE).
Violence and x The resolution asserts for combating terrorist elements and complete eradication of their
Extremism supportive movements, financial support cut to terrorist groups in particular.

FOCUS | MARCH 2018 | RAU’S IAS 3


International Relations

Î INTERNATIONAL COOPERATION

x The Indian side reaffirmed its support for full and effective implementation of the Joint
Joint
Comprehensive Plan of Action (JCPOA).
Comprehensive
x JCPOA was signed between P5+1 and Iran in 2015, thereby leading to the lighting of several
Plan of Action
sanctions on Iran that were imposed to Iran’s nuclear program.

India and Iran asserted their support for the National Unity Government in Afghanistan. They
On Afghanistan stressed the significance of strengthening India-Iran-Afghanistan trilateral cooperation,
especially through the cooperation on Chabahar port.

x India has forwarded its support to the accession of Iran to the World Trade Organization and to
World Trade reactivate the accession process.
Organisation x Iran was given an observor status of WTO in 2005 and its application has denied forward
movement by the US led countries due to the on-going crisis due Iran’s nuclear program.

UNITED ARAB
Recently, the Prime Minister of India visited UAE. Let us now
EMIRATES (UAE) understand the major focus areas in the strengthening of relationship
between India and UAE.
# Bilateral relations
Î STRATEGIC AND SECURITY COOPERATION

UAE-India x The institutional mechanism of UAE-India Strategic Dialogue has been established under the
Strategic Comprehensive Strategic Partnership Agreement during this visit.
Dialogue x The Comprehensive Strategic Partnership Agreement was signed during the visit of Crown

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Prince Sheikh Mohammed to India in January, 2017.


x It is a mechanism to monitor the progress in the agreed areas of engagement under CSPA such as
the ministerial-level strategic dialogue process.

x Both countries have asserted that extremism and terrorism cannot be defeated only by the use of
force and acknowledged the need for a holistic approach in countering extremist ideologies.
Hence, the two leaders recognised the critical role of interfaith dialogue and in promoting the
Countering
values of tolerance, peace, inclusiveness.
Radicalism
x Both countries intend to combat the disrupting the use of web and social media for promotion
of extremist and violent ideologies and preventing the use of religious centres to radicalize youth
and recruit terrorist cadres.

x Both countries reiterated their condemnation of state sponsored terrorism against other countries
and to use terrorism as instrument of state policy. Therefore, asserted that such countries
should cut all support to terrorists operating and perpetrating terrorism from their territories
against other states.
State x Both countries asserted that countries should avoid giving religious and sectarian colour to political
Sponsored issues and pointed out the responsibility of all states to control the activities of the so-called ‘non-
Terrorism state actors’.
x The two leaders agreed that resolute and credible steps must be taken to eliminate safe havens
and sanctuaries that provide shelter to terrorists and their activities.
x The reiteration is seen as an in-direct reference to Pakistan and its continued sponsorship to
terrorism in India and Afghanistan.

x Both countries would further augment the on-going cooperation of security dialogue between the
Security National Security Adviser of India and National Security Council of UAE.
Dialogue x The dialogue is aimed at enhancing cooperation in counter-terrorism operations, intelligence-
sharing and capacity-building.

x India and UAE would hold the first meeting of the Joint Task Force on prevention and combating
Against human trafficking within this year.
Trafficking x Moreover, both countries intend to establish institutional mechanism for cooperation to combat
drug-trafficking.

x Both countries intend to finalize an MOU on Cooperation in the Exchange of Financial


Against Intelligence related to Money Laundering, Associated Predicate Offences and Terrorist Financing.
Financial x Both countries intend to further augment upon the MOU on combating cybercrime which was
and Cyber signed in 2016.
Crimes x Both countries intend to establish an institutional mechanism for undertaking joint research
activities through a joint Research and Development Centres of Excellence.

x India and UAE would conduct their first bilateral Naval Exercise during 2018.
x The two sides renewed their commitment to work closely to strengthen maritime security in the
Maritime Gulf and the Indian Ocean region, which is vital for the security of both countries.
Cooperation x UAE has showcased interest in the coastal surveillance systems and patrol vessels that have been
developed by India. Both countries had signed an agreement for supply of naval offshore patrol
vessels by India to UAE in 2017.

Î ECONOMIC COOPERATION

x There would reciprocal opening of office, with the Confederation of Indian Industry in Dubai and
Institutional
of the Dubai Chambers of Commerce in Mumbai. The aim for both would be to support
Exchanges
businesses, trade and investment in both countries.

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x Both sides signed a MoU between Abu Dhabi Securities Exchange and Bombay Stock
Exchange.

x UAE has expressed interest in deepening cooperation with India in space exploration under the
existing MOU on Space cooperation signed in 2016. ISRO had launched a UAE Nano satellite
Space
Nayif-1 in 2017.
Cooperation
x Both countries would cooperate in the areas of remote sensing, space science, satellite
navigation, launching services, academic cooperation and industry interactions.

x Abu Dhabi Investment Authority (ADIA) would participate in India’s National Infrastructure
Investment Fund as an anchor investor and aid in creation of joint investment platform for
Investment ports, terminals, transportation and logistics businesses in India
x Both countries would form a ministerial-level UAE-India High Level Task Force on Investments
in promoting bilateral investment ties between both nations.

x UAE is one of the leading suppliers of crude oil to India and a reliable partner in India’s energy
security.
Oil Trade x India and UAE also intend to diversify their trade ties from beyond oil and transform their buyer-
seller relationship in the energy-sector to on with focus on investment and joint ventures in
petrochemical complexes, joint exploration in India, UAE and in third countries.

UAE has signed and ratified of the Framework of the India-led International Solar Alliance (ISA)
ISA
Agreement.

Î SOCIO-CULTURAL COOPERATION

x UAE Government facilitated the construction of a temple as a commitment to the principles of


Temple in tolerance and to building a pluralistic society where diverse communities enjoy the freedom to
Abu Dhabi practice their religion, language and culture.
x Prime Minister of India, took part in the ground-breaking ceremony of the temple in Abu Dhabi.

Educational Both sides agreed to enhance consultations on mutual recognition of educational degrees. They
Cooperation agreed to deepen cooperation especially in areas of smart classroom and digital education.

Cruise
Both countries would cooperate in improving cruise tourism between the two countries.
tourism

INDIA AND OMAN Recently, the Prime Minister of India visited Oman. Let us now
understand the major focus areas in the strengthening of
# Bilateral relations relationship between India and Oman.

Î DIPLOMATIC AND SECURITY COOPERATION

x India and Oman agreed to continue working together to counter the problem of terrorism. Both
countries asserted that there could be no justification for any act of terrorism.
x Both countries emphasized upon the need to isolate the sponsors of terrorism and misuse of
Combating religion by groups and countries for inciting hatred and perpetrating acts of terrorism.
Terrorism x This indirectly counters the argument given by Pakistan of ‘good terrorist and bad terrorist’, and the
role of Pakistan in aiding terrorism in India and Afghanistan.
x Both countries asserted for an early conclusion of negotiations on the Comprehensive Convention
on International Terrorism in the United Nations.

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International Relations

x Oman has facilitated operational visits by Indian naval ships and aircraft and Indian Air Force
aircraft to various Omani ports and airports. While, India has provided training facilities to the
Defence
Omani Royal Armed Forces personnel.
Cooperation
x India and Oman had earlier signed a MoU on Military Cooperation in 2005 and renewed in 2016. It
has provided the general framework to strengthen bilateral defence ties.

x India and Oman agreed to enhance cooperation to strengthen maritime security in the Gulf and
Maritime the Indian Ocean regions, vital for the security and prosperity of both countries.
Cooperation x They further agreed to promote bilateral collaboration for humanitarian assistance and evacuation
in natural disasters and conflict situations.

x Both countries stressed the need for the UN reforms, including of the Security Council through
UNSC expansion in both permanent and non-permanent membership of UNSC.
Reforms x Oman reiterated its support for India’s candidature for permanent membership in an expanded
UN Security Council.

DUQM PORT

x India and Oman finalized an agreement


that will see India gain access to the
strategically located port of Duqm.

x The port is located on Oman’s southern


coast and also provides access onward
into the Red Sea through the Gulf of
Aden.

x The port is near to the Chabahar and


Gwadar port.

x The Indian Navy will be able to use the port for logistics and thereby allowing it to sustain long-
term operations in the western Indian Ocean.
Indian x Moreover, a dry dock will be available to the Indian Navy at Duqm thereby allowing for
Presence maintenance without returning vessels to India-based shipyards.
x A cause of concern for India would be that the SEZ in Duqm is being financed and has
considerable presence of China.

x The Duqm port would enhance the sustainable security network of India in the Indian Ocean
region against piracy and growing presence of China.
x India’s strategic linkages in the Indian Ocean region would include Duqm in Oman,
Influence in
Chabahar in Iran, Assumption Island in the Seychelles, Agalega in Mauritius, and the
IoR
Andaman and Nicobar Islands.
x Moreover, under the Logistics Exchange Memorandum of Agreement (LEMOA) with United States,
India can access the support facility at US base at Diego Garcia.

Î ECONOMIC COOPERATION

x Oman is to diversify its economy beyond dependence on oil and has invited Indian companies to
invest in various sectors in the special economic zones of Oman such as in Duqm.
Investments
x India has invited Omani Sovereign Wealth Funds to invest in India. Both countries agree that
India-Oman Joint Investment Fund could be an important mechanism to raise funds for two-

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International Relations

way investments.
x Both countries intend to conclude the on-going negotiations on the Bilateral Investment Treaty
for early finalization.

x Oman has decided to join the International Solar Alliance (ISA).


ISA x India has offered to share India’s experience and capabilities with Oman in development of its
renewable sources of energy, such as solar and wind power etc.

x Indian reiterated India's invitation to Oman to participate in building the strategic oil reserves in
India.
Strategic Oil
x Strategic oil reserves is maintenance of reserve of oil, equivalent to specific number of days of oil
Reserves
imports for strategic-cum-buffer stock purposes. The Indian Strategic Petroleum Reserve
Limited (ISPRL) is mandated for forming of strategic crude oil reserves.

x India would be assisting in development of Oman’s capabilities, including training, human


Space resource development, for use of space technologies and applications for developmental of
Cooperation space research.
x Both countries signed a MoU on cooperation in space sector.

Î SOCIO-CULTURAL COOPERATION

Festival of India India and Oman cooperated in organizing the first-ever Festival of India in Oman.

India and Oman signed a MoU on Cooperation in Tourism and an agreement on the mutual
Tourism exemption of visa requirement for holders of diplomatic, official, special and service passports during
the visit.

PALESTINE Recently, the Prime Minister of India visited Palestine. Let us now
understand the major focus areas in the strengthening of relationship
# Bilateral relations between India and Palestine.

THINGS TO UNDERSTAND

x This is the first visit ever by a Prime Minister of India to Ramallah, Palestine, and this is in
Importance succession to the visit by President Mahmoud Abbas of Palestine to India in 2017.
of Visit x 6 MoU were signed ranging from healthcare, printing press, education sector and other fields.
projects worth $30 million.

Highest The highest honour of Palestine given to a foreign leader ‘Grand Collar’ was bestowed upon Prime
honour Minister during his visit.

9 Cooperation in the areas of training, technology, infrastructure development, project assistance


and budgetary support.
India has re- 9 Formation of a Technology Park project in Ramallah which is currently under construction to
asserted its enhance employment skills and services.
NATION-
9 Formation of Institute of Diplomacy in Ramallah.
BUILDING
EFFORT in 9 Scholarship slots for Palestinian students in leading Indian educational institutions of different
Palestine, in sectors such as finance, management, rural development and information technology were
the form of: recently extended.
9 Investment in projects of health, educational infrastructure and women empowerment centre
and also in a printing press.

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International Relations

x The Prime Minister travelled to Palestine via Amman, Jordan, rather than the popular route from
Israel to Palestine. This was done to avoid taking access from Israel to Palestine.
x This was a reflection of the policy of de-hyphenation of India’s relations with Palestine and Israel
to ensure that each relationship is mutually independent and exclusive as envisioned under this
Policy of De-
policy.
Hyphenation
x India has re-asserted for Palestine to soon become a sovereign and independent country in a
peaceful atmosphere.
x The visit of Prime Minister Modi to Jordan was primarily for transit to Palestine. King Abdullah II of
Jordon would be visiting India in the month of March, 2018.

x India has supported for the accession of Palestine into Interpol that would ensure international
recognition to Palestine and help in combating trans-national crimes.
Interpol
x The International Criminal Police Organisation (INTERPOL) is an international organisation that
facilitates international police cooperation and is headquartered in Lyon, France.

VISIT OF CANADIAN Justin Trudeau, Prime Minister of Canada, visited India recently
under the theme ‘Partnership for Security and Growth’. Let us
PM # Bilateral relations understand the outcome of the visit.

Î ECONOMIC COOPERATION

x Both countries intend to finalize:


9 Comprehensive Economic Partnership Agreement
9 Bilateral Foreign Investment Promotion and Protection Agreement
Investment
Agreements x Canada has insisted on the earlier finalization of the Bilateral Investment Protection Agreement
and then the trade agreement.
x This would allow the early investment of Canadian funds such as the Canadian pension funds to
invest in India.

x There were 6 Memorandum of Understanding signed between India and Canada such as in higher
education, sports, intellectual property rights, among others.
MoUs
x Moreover, progress has been made for future MoUs in the field of civil nuclear science and
technology, audio-visual co-production, etc.

India's flagship programmes such as Make in India, Start-Up India, Digital India and Smart Cities
Cooperative project would form cooperative linkages with Canadian flagship programmes such as the
Programmes Innovation and Skills Plan, the Canadian Technology Accelerators, the Start-Up VISA Program and the
Global Skills Strategy.

Track 1.5 Both countries have launched the Canada-India Track 1.5 Dialogue on Innovation, Growth and
Dialogue Prosperity and the Canada-India Accelerator Program for Women Tech Entrepreneurs.

x India and Canada will work closely together to finalize an arrangement within 2018 to enable the
export of Canadian pulses to India which are quarantined and free from pests, with mutually
Agricultural acceptable technological protocols.
Cooperation x The Canadian Food Inspection Agency will continue to work closely with the Agricultural and
Processed Food Products Export Development Authority to facilitate access for Indian organic
products.

Energy Canada-India Ministerial Energy Dialogue has been expanded to also include electricity, energy

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Cooperation efficiency and renewable.

Î SOCIAL SECTOR COOPERATION

x India and Canada have announced a new health innovation project in India through Canada
and India Grand Challenges. It would focus on importance of sexual and reproductive health
Gender
and rights of women and girls.
Empowerment
x Both countries have asserted that gender perspectives should be integrated into peace and
security activities and the prevention of conflict-related sexual violence.

x Both countries celebrated the 50th Anniversary of the Shastri Indo-Canadian Institute.
x The institute was established in promoting understanding between India and Canada through
Education academic activities and exchanges and is supported by both governments.
x Both countries would facilitate the movement of highly skilled persons from India to Canada
under the Global Skills Strategy program of Canada.

Î SCIENCE AND TECHNOLOGY COOPERATION

x Canada has assured the continuation of uranium exports from Canada for peaceful use of civil
Nuclear nuclear power in India.
Energy x Both countries have agreed to expand the civil nuclear cooperation by further collaborating in
nuclear science and technology.

x India may participate in the Canadian Arctic research program to enhance geo-spatial
Research collaboration.
Cooperation x Both countries would also further expand the India-Canada space cooperation by further
launching of Canadian satellites.

Î SECURITY COOPERATION

x There were reports, but denied by Government of India, that the visit of the Canadian PM Justin
Trudeau was snubbed or down-played by Indian officials.
x It was argued that the diplomatic protocol of the visit was kept at the bare minimum during the
initial leg of the visit with a low-key welcome, among others factors.
Snub? x It was done due to the sympathetic approach of the Justin Trudeau government and his political
party to Khalistani supporters in Canada.
x Moreover, the Canadian government has continuously ignored and over-looked the security
considerations that have been raised by India with regard to sympathising with Khalistani
movement.

x Canada has asserted in the joint statement it would respect the sovereignty, unity and territorial
integrity of India. Thereby in-directly ensuring that it would not sympathise with separatist
Khalistani movement.
Assurance
x Both countries, under the Framework for Cooperation on Countering Terrorism and Violent
Against
Extremism (FCCTVE agreement), intend to work together to neutralize the threat emanating
Khalistan
from terrorist organisations such Babbar Khalsa International, International Sikh Youth Federation,
in-addition to ISIS, JeM, LeT, among others.
x Both countries have agreed for an agreement on a bilateral FCCTVE.

x India and Canada have asserted for making accountable state sponsors of terrorism, including
cross-border terrorism. They further emphasized that no country should allow its territory to be
Terrorism
used for terrorist and violent extremist activities.
x This is seen as an in-direct reference to Pakistan and its continued sponsor of terrorism in

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Afghanistan and India.

x Both countries would expand the security cooperation through institutionalized meetings under
Track 1 the FCCTVE agreement:
Dialogue 9 NSA-level Dialogue
9 Foreign Minister-level Strategic Dialogue

Defence Both countries would explore defence cooperation possibilities in field of cold climate training,
Cooperation enhancing naval interactions and staff exchanges.

Î INTERNATIONAL COOPERATION

x Both countries have called for dismantling of infrastructure for support to terrorism from within
On and across borders of Afghanistan.
Afghanistan x Both countries reiterated their support to achieve an Afghan-led, Afghan-owned and Afghan-
controlled national peace and reconciliation process.

x India and Canada have asserted that regional connectivity infrastructure projects should be
developed through transparent means and use of responsible debt financing practices, while
ensuring respect for sovereignty and territorial integrity of countries.
On China
x This is seen as an in-direct reference to China’s ‘Belt Road Initiative’ and its debt financing impact
in Sri Lanka and other countries and the violation of India’s territorial sovereignty by the CPEC
project in PoK.

x India and Canada have asserted that those who supported North Korea’s nuclear and missile
programmes should be held accountable.
x This is an in-direct reference to Pakistan, which through the ‘nuclear black-market’ network of
Korean
A.Q. Khan supported the nuclear programme of North Korea.
Crisis
x India and Canada supported the sports cooperation during the PyeongChang Winter Games in
South Korea which may lead to easing of tensions on the Korean Peninsula and improvements in
inter-Korean relations.

x India and Canada have condemned the degradation of judicial independence and authority and of
democratic institutions and violation of constitutional rights by the Yameen government in
Maldives.
On Maldives x Both countries have urged the Maldivian government to ensure early resumption of the political
process and the revoking of the state of emergency. Moreover, both countries have urged allow
democratic institutions including the judiciary to function independently in a fair and transparent
manner.

x Canada and India have asserted for the voluntary, safe and sustainable return of the Rohingya’s
displaced from Myanmar and allow humanitarian access for relevant UN and other international
Rohingya
organisations to facilitate the return process.
Crisis
x Myanmar has been reluctant to allow UN and other international organisations free access to the
Rakhine district and involvement in return process of Rohingya.

Export Canada had earlier supported India’s membership to the MTCR, Wassenaar Arrangement and the
Control Australia Group and has now reiterated Canada’s support for India’s membership of the Nuclear
Regimes Suppliers Group.

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International Relations

Recently, the US ambassador to India, Kenneth


LEMOA AND COMBATANT
Juster, proposed a form of reciprocal military liaison
COMMANDS officers at each other’s combatant commands. Let us
understand this development between the two
# Bilateral relations countries.

x United States has proposed for reciprocal military liaison officers at each other’s combatant
commands.
Meaning of the Î A liaison officer is an individual who is employed to form a working relationship between
proposal two organizations to their mutual benefit.
Î A combatant command means a dedicated component of the Army, Air force and/or Navy
that handle specific military operations.

US has arrangements to have military liaison officers with some of its NATO allies and close
US and Liaison
defence partners such as Australia, Canada, Japan, Republic of Korea, Philippines, New Zealand,
Officers
Great Britain.

x India and the US signed the Logistics Exchange Memorandum of Agreement (LEMOA)
which allows their militaries to work closely and use each other’s bases for repair and
LEMOA replenishment of supplies.
x Moreover, the previous Barack Obama administration had designated India a Major
Defence Partner, and hardcoded it into an act of the US Congress.

US-India
Both countries intend to establish a Counter-terrorism designation dialogue. It seeks to
Counterterrorism
enhance the sharing of information, designations of terrorists, combating of financial crimes
Designation
and networks, and disruption and dismantling of terrorist camps and operations globally.
Dialogue

x India in the past has remained opposed to any military alliance with a country. It is because
such an alliance might impinge on India’s strategic autonomy in pursuing a policy of
multilateralism.
x United States suffers from a perception of being an un-reliable defence partner due to the
Critique
past history of relations between India and US.
x Moreover, India has not yet seen any major benefits by being designated a Major Defence
Partner of US, with no major transfer of American defence technology and no joint
production partnership formed.

CRISES IN A recent verdict of Maldivian Supreme Court caused a political crisis in


Maldives, which due to action of President Yameen has evolved into a
MALDIVES constitutional crisis. Let us understand about what led to the Maldives crisis
# Neighbourhood and its impact on international politics.

TIMELINE OF CRISIS

x The Chief Justice of Maldives is arrested under the government of President Mohamed Nasheed.

2012 x The arrest spirals into a revolt by the police and bureaucracy.

x President Nasheed resigned and asserted that he was forced out in a coup.

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x The Commonwealth backed investigation, denied the claim of President Nasheed.

x Abdulla Yameen wins the presidential election, but


elections were annulled by the Supreme Court of
2013 Maldives and subsequently suspended the Election
Commissioner.

x Nevertheless, Abdulla Yameen continued in office.

x Mohamed Nasheed was arrested on the charges of


terrorism and jailed for 13 years under the Abdulla
2015 Yameen government.

x The arrest led to protests across Maldives and


emergency was declared by President Yameen.

x Mohammed Nasheed was granted medical leave to the United Kingdom, and upon leaving Maldives, he
was granted refugee status in UK.
2016
x Maldives left the Commonwealth after it was threatened with suspension to ensure fair and transparent
democracy in Maldives.

x Supreme Court of Maldives ordered for the release of several opposition leaders that were arrested
and jailed by President Yameen government. It included former President Nasheed.

x The Attorney-General of Maldives asserted that the government cannot follow the Supreme Court ruling
2018 and termed the SC order as ‘illegal’.

x Subsequently, the parliament of Maldives (Majlis) and the Supreme Court were shut down and several
opposition leaders such as former president Gayoom were arrested by President Yameen government.

x President Yameen declared emergency in Maldives.

ADDITIONAL CRISIS IN MALDIVES

x There is a growing presence of Daesh in Maldives and has been seen with growing influence of
Presence of Saudi philosophy of Wahhabis. Maldives has one of the highest per-capita Daesh fighters.
Daesh/ISIS x Moreover, due to the continuous defeat of Daesh, these fighters have been returning to Maldives
and pose a threat to security of India, Sri Lanka and Maldives.

x There has growing trend of Chinese companies and individuals acquiring land in Maldives. The
land grab is seen in excess of what East India Company had acquired during the colonial period in
Chinese
Maldives.
Land Grab
x This land grab has raised concern of Maldives being increasingly falling into an economic neo-
colonial influence of China.

REACTIONS TO MALDIVES CRISIS

x China and the President Yameen government have showcased reciprocal understanding and
friendship which was most recently seen in Maldives signing its first country-specific FTA with
China China.

x China has asserted for a ‘home-grown’ solution in Maldives and in-directly asserted that other
countries should not interfere in Maldives crisis.

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x A home-grown solution would help President Yameen since the opposition is either in exile or in
jail. Therefore, a home-grown solution would not be strongly negotiated and would therefore
favour the Yameen government.

x India has asserted that the President Yameen government lift the emergency and allow for a free
and transparent functioning of the Maldives parliament and judiciary. Moreover, the political
prisoners should be released and the present government should adhere to the orders of the
India Supreme Court.

x It has been asserted that India should protect its national interest in Maldives which is to ensure
that Maldives does not become a client state of China and therefore India should ensure its
strategic stronghold in Maldives.

x Former president Nasheed has asked India to showcase gun-boat diplomacy in Maldives.

Î Simply, gun-boat diplomacy means the display of naval power with the threat of military action
such as a naval blockade.
Mohammed
x He has asserted that India has represented itself as a Net Security Provider in the Indian Ocean
Nasheed
Region and therefore India should now provide security to democracy in Maldives.

x Moreover, diplomatic means would not aid in India achieving its national interest of containing
China in Maldives.

x It has been asserted that it is not India’s role or duty to form democracy in Maldives and it is for
the people of Maldives to decide their political future.

x India should therefore not enforce democracy from a top-up approach of a military
intervention.

India and x India has previously intervened during humanitarian crisis in neighbouring countries such as in
Military Bangladesh in 1971, in Jaffna, Sri Lanka during 1980’s, etc.
Intervention x Currently, there is no humanitarian crisis in Maldives.

x Moreover, South Asia is a hot-bed of political/constitutional crisis and India cannot military
intervene each time.

x Also, Indian intervention might politically strengthen fundamentalist groups in Maldives, give
China an excuse to also intervene and re-impose India’s big-brother image in South Asia.

INDIA’S PREVIOUS INTERVENTION

x There was attempt of a coup against the Maldivian government in 1988 by armed mercenaries of
Operation Tamilian secessionist movement, linked to the Tamilian separatist groups of Sri Lanka.
Cactus x The coup failed due to the military intervention in Maldives by India which was code-named
‘Operation Cactus’.

ASHGABAT AGREEMENT Recently, India joined the Ashgabat Agreement. Let us


# International understand it.

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THINGS TO UNDERSTAND

An agreement for the


Establishment of an
What is the International Transport and
Ashgabat Transit Corridor among Iran,
Agreement? Oman, Turkmenistan and
Uzbekistan that came into
force in 2011.

The agreement envisages


setting up of an international
transport and transit corridor
linking central Asia with the
Objective
Persian Gulf to facilitate
transit and transportation of
trade and investment in
goods.

Member x The founding members were Turkmenistan, Iran, Oman and Uzbekistan.
Countries x Kazakhstan joined in 2016 and India became a member in February, 2018.

India’s membership to the agreement would diversify India’s connectivity options with Central Asia
Advantages
such as the use of Iran-Turkmenistan-Kazakhstan (ITK) railway line which can be linked with the
of Joining
Chabahar-Zahedan railway line that India is aiding in formation.

x The Ashgabat multi-modal corridor is intended to be complimentary and to be synchronised with


the International North South Transport Corridor (INSTC) for enhanced connectivity.

x Similarly, Ashgabat agreement member countries are synchronized with TIR carnets and India
INSTC and became a member of the Customs Convention on the International Transport of Goods under
TIR Carnets TIR Convention of 1975 in June, 2017.

x TIR is intended to provide the principal security for movement of transit cargo. It has an
internationally recognised customs transit document that accompanies truck drivers and the cargo
across custom points from origin to destination.

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CONSTITUTION, POLITY AND GOVERNANCE
# GS Paper (Prelims) & GS Paper II (Main)

ELECTORAL BONDS – AN The concept of electoral bond was introduced in the


Budget of 2017-18 for a check on the political funding.
ANALYSIS On this, the Ministry of Finance recently notified the
scheme of Electoral Bonds.
#Elections #Reforms #Governance

THINGS TO KNOW

x In an effort to clean the country from the evils of corruption, black money and non-transparent
political funding, the government -
9 disallowed cash donation to political parties beyond Rs. 2000; and
Purpose of 9 introduced the concept of electoral bonds
introducing x A similar suggestion was made by the Election Commission (EC) to provide an environment of
Electoral cleaner and more transparent election process.
Bonds x The concept of electoral bonds has been introduced to restrict use of cash donations to political
parties and enhance transparency in the process of political funding.
x However, political parties shall be entitled to receive donations by cheque or digital mode from
their donors of any amount.

x Electoral Bonds are bearer instrument in the nature of a Promissory Note and are an interest
About
free banking instrument.
Electoral
x Electoral Bond shall be issued for any value, in multiples of -
Bonds
9 Rs.1K, Rs.10K, Rs.1 Lakh, Rs. 10 Lakhs, Rs. 1 Crore from the Specified Branches of the State Bank

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Constitution, Polity
and Governance

of India (SBI).
x The purchaser would be allowed to buy Electoral Bonds only on due fulfillment of all the extant
KYC norms and by making payment from a bank account. It will not carry the name of payee.
x Electoral Bonds would have a life of only 15 days during which it can be used for making
donation only to political parties:
9 Which are registered under section 29A of the Representation of the Peoples Act, 1951; and
9 Which has secured not less than one per cent of the votes polled in the last general election to
the House of the People or to Legislative Assembly.
x Every political party in its returns will have to disclose the amount of donations it has received
through electoral bonds to the Election Commission.

x The Electoral Bonds shall be available for purchase for a period of 10 days each in the months of
January, April, July and October, as may be specified by the Central Government.
Availability for x An additional period of 30 days shall be specified by the Central Government in the year of the
purchase General election to the House of People.
x The Electoral Bond shall be encashed by an eligible political party only through a designated
bank account with the authorised bank.

x For the introduction of electoral bonds amendments in the following Acts were made-
9 Income tax Act, 1961
Amendments
9 Representation of People Act, 1951
required
9 Companies Act, 2013
9 Reserve Bank of India Act, 1934

WILL THEY INCREASE OR REDUCE TRANSPARENCY?

x As per Section 29C of Representation of People Act, 1951 – Every political party had to declare
donations in excess of Rs. 20,000 received from any person or companies.
x As per Section 13-A of Income Tax Act, 1961 political parties were supposed to maintain records
of contributions made in excess of Rs. 20,000 along with the names and address of all donors.
Possible
x However, an amendment made in the Finance Act, 2017 has kept electoral bonds out of the
demerits
purview of both these provisions.
x Thus, the donor is not required to disclose the name of political party while purchasing electoral
bonds and political parties are not required to maintain records of the donors. This affects the
cause of transparency in the funding of elections.

x As per Section 182 of Companies Act, 2013, a company must be at least three years old to
contribute to a party and its contribution could not have been more than 7.5% of its Average
Net Profit in the three preceding years.
x However, through amendment in Companies Act, 2013, the government has removed
Promoting shell 9 Cap of 7.5% on political donations by companies
companies? 9 Need to disclose name of political party to which the company has contributed
x Now any company can donate any amount of cash through electoral bonds and the identity of
such company shall not be disclosed.
x Thus, shell companies can be formed just for political funding and can be a source of
corruption.

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Constitution, Polity
and Governance

The Supreme Court has ruled that Politicians, their spouses


SC ON DECLARING and associates must declare their source of income along
SOURCES OF INCOME with their assets to qualify for contesting elections. The
politicians will now have to declare their source of assets
#Elections #Reforms #Governance at the stage of filing nomination.

CARRYING FORWARD THE IMPACT OF YEAR 2002 JUDGEMENT


In 2002, a landmark judgment in Union of India v Association for Democratic Reforms and Another directed the
Election Commission to call for information on affidavit under Article 324 of Indian Constitution on -
x Criminal background including previous conviction, acquittal or discharge along with fine;
x Declaration of assets of the candidate and his/her spouse along with number of dependents;
x Liabilities including debts owed to any financial institution or otherwise; and
x Educational qualification of the candidate.
x This judgment increased awareness among voters about the potential candidates from their respective
constituencies.

NUMBING NUMBERS COME TO THE FOREFRONT

162 out of 543 40 of the 232 1,258 353 out of 540


sitting Loksabha MPs, which Sitting Rajya Sabha MPs, of the 4,032 Candidates with
represents 30% of the total, which represents 17% of the sitting MLAs have declared serious criminal
have declared criminal total, have declared criminal criminal charges against charges have been
charges against them. Out of cases against them. Out of themselves. Out of these given tickets for the
these 76 (14%) have declared these 16 (7%) have declared 15% have declared serious second time.
serious criminal charges seriuos criminal charges criminal cases against
against themselves against themselves themselves

WHAT IS THE NEW INITIATIVE BY THE SUPREME COURT?

The SC while hearing a Public Interest Litigation (PIL) filed by Lok Prahari, a Lucknow based NGO
made the following observations:
x The court made it mandatory for candidates contesting in elections and their associates to
declare their assets and source of income at the time of nomination.
x Those candidates standing for elections would also have to disclose information regarding
contracts with any government agency or Public Sector Undertakings (PSUs) either by them or
spouse and dependents.
x Answerable: The Court said that the obligation of a candidate to disclose both his assets and the
source of income is a part of the fundamental right of a citizen to know under Article 19 (1) (a) of
Current stand the Constitution.
x The Court added that a candidate's constitutional right to contest an election to the legislature
should be subservient to the voter’s fundamental right to know the relevant information
regarding the candidate.
x Amassing wealth is a “culpable offence” by itself and a law maker can be prosecuted even without
charging him for offences under the Prevention of Corruption Act, 1988.
x Thus, the Court held that manifold and undue accretion of assets by legislators or their associates
by itself becomes a good ground for disqualification.
x The amassment of unaccounted wealth by lawmakers is the mark of a failing democracy. If left
unattended it would inevitably lead to the destruction of democracy and pave the way for the rule

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Constitution, Polity
and Governance

of mafia.
x Permanent Commission: The Supreme Court also directed the government to set up a Permanent
Mechanism to monitor the accrual of wealth of sitting Members of Parliament and Members of
State Legislative Assemblies along with their spouses and associates.

x Declaration of sources of income of people standing for elections will make the process of asset
declaration more transparent.
x It will not only reveal total assets of the family but will also reveal the potential sources through
which such wealth are acquired. This will also reveal the amount of wealth acquired during the
Possible
previous 5 years and its source.
benefits
x If there is an exponential increase in wealth of either the MP or MLA or their relatives, then an
enquiry can be set up regarding accumulation of wealth in a limited time span.
x This will effectively help in cleaning the electoral process from the clutches of corruption and will
act as another step in preventing criminalisation of politics.

The government has constituted Commercial Courts at the


COMMERCIAL district level, Commercial Division and Commercial Appellate
DIVISION BENCH Division in the High Courts for adjudicating commercial disputes
of specified value by enacting a law as it will free workload of
#Act #Judiciary #Governance regular Courts in India.

1) LAW COMMISSION in its 245th Report looked into the issues of creation of additional courts for
elimination of delays, speedy clearance of arrears and deduction in cost. Among other
suggestions, the Commission also suggested
9 Increasing judicial strength to address the issue of backlog;
9 Increasing age of retirement for Subordinate Judge to 62 years;
Who
9 Creation of Special Courts for traffic/police challan cases;
recommended?
9 Periodic assessment by High Courts to address judicial needs;
2) Even NITI AAYOG in its Three Year Action Agenda has suggested shifting large sections of
workload out of the regular Court system.
Thus, the Parliament enacted Commercial Courts, Commercial Division and Commercial Appellate
Division of High Courts Act, 2015 to adjudicate commercial disputes of specified value.

Any dispute related to -


x Transactions between merchants, bankers, financiers, traders, etc. dealing with mercantile
documents, partnership agreements, intellectual property rights, etc.

What x Export or import of merchandise or services, admiralty and maritime law.


constitutes x Construction and infrastructure contracts, including tenders.
Commercial x Agreements relating to immovable property used exclusively in trade or commerce.
Disputes?
x Distribution and licensing agreements, management and consultancy agreements, joint venture
agreements, shareholders agreements, etc.
x Arbitration involving commercial disputes including international arbitration which are filed in
Civil Courts/High Courts of value of more than Rs. 1 crore.

What is Specified Value in relation to a commercial dispute shall refer to such cases -
Specified Value 9 whose value of the subject matter is not less than Rs. 1 crore, or

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Constitution, Polity
and Governance

9 such higher value, as may be notified by the Central Government.

WHAT ARE THE TYPES OF COURTS CREATED?

Commercial State government in consultation with High Courts can set up Commercial Courts at District level
Courts and specify its territorial jurisdiction.

x Chief Justice of High Court may constitute Commercial Division of High Court having one or
Commercial
more Benches consisting of a single Judge.
Division of High
x The Chief Justice of the High Court shall nominate such Judges of the High Court who have
Court
experience in dealing with commercial disputes to be Judges of the Commercial Division.

Commercial Appellate Chief Justice of High Court shall constitute Commercial Appellate Division having one or
Division more Division Benches.

All cases of commercial disputes of value of Rs 1 crore or more including cases under The
Arbitration and Conciliation Act, 1996 pending in Civil Court or High Court in any area shall be
transferred to Commercial Court or Commercial division of High Court.
Further,
Any person aggrieved by the decision of the Commercial Court or Commercial Division of a High
Court may appeal to the Commercial Appellate Division of that High Court within a period of 60
days from the date of judgment.

BENEFITS

x It will streamline cases related to commercial disputes and help in speedy resolution of such cases through Case
Management Hearings.
Î Case Management is a judicial process where the Judge identifies issues of facts and laws in disputes, provides a
strict timeframe for speedy disposal of case and also explores alternative methods to settle disputes. Case
Management hearing is generally referred in cases of International Arbitration.
x It will effectively help in reducing the burden of cases at the level of High Court.
x Speedy disposal of cases will help in improving compliance and in enforcing contracts.
x Ease of doing business: Such enforcement of contracts will also help in improving India’s ease of doing business
rankings as it will inspire confidence in the business fraternity on India’s capability to handle and resolve commercial
disputes in a given timeframe. India was ranked 100 by World Bank on Ease of Doing Business in 2018 which was a
jump of 30 places from the 2017 rankings.
x It will help in creating a specialist cadre of Judges dealing with Commercial disputes.
x It will improve judicial infrastructure at the level of district Court as well as High Court by providing adequate training
facilities including special seminars.

The Union Cabinet has approved the constitution of


ARBITRATION Arbitration Council of India (ACI) which would grade
institutions involved in alternative dispute resolution,
COUNCIL OF INDIA accredit arbitrators and take necessary steps to promote
and encourage arbitration, conciliation, mediation and
#Act #Committee #Statutory Body
other alternative dispute resolution mechanism.

ACI has been institutionalised on the recommendations of a High Level Committee formed under the
Chairmanship of Justice B.N. Srikrishna.

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Constitution, Polity
and Governance

JUSTICE B.N. SRIKRISHNA COMMITTEE

x The Arbitration and Conciliation (Amendment) Act, 2015 was passed to make arbitration
process user friendly, cost effective and ensure speedy disposal and neutrality of arbitrators.
x Despite the amendments proposed under 2015 Act, certain practical difficulties still
remained.
x Thus a High Level Committee (HLC) under the Chairmanship of Justice B. N. Srikrishna was
Constitution
formed to-
9 examine the effectiveness of existing arbitration mechanism by studying the functioning and
performance of Arbitral Institutions in India;
9 devise a road map to promote institutionalized arbitration mechanisms in India;
9 evolve an effective and efficient arbitration eco-system for commercial dispute resolution.

x Setting up an Autonomous Body, styled the Arbitration Promotion Council of India (APCI),
having representatives from all stakeholders for grading arbitral institutions in India
including recognition of professional institutes providing for accreditation of arbitrators
x Hold training workshops and interact with law firms and law schools to train advocates with
interest in arbitration with a goal to create a specialist arbitration bar comprising of
advocates dedicated to the field.
Recommendations
x Creation of a specialist Arbitration Bench to deal with such Commercial disputes, in the
domain of the Courts.
x National Litigation Policy (NLP) must promote arbitration in Government Contracts.
x Creating the post of an ‘International Law Adviser’ (ILA) who shall advise and coordinate with
the government on dispute resolution strategy for disputes arising out of Bilateral
Investment Treaties (BIT).

CONSTITUTION OF ACI

x To facilitate constitution of ACI, the cabinet recently approved The Arbitration and Conciliation
Presentation (Amendment) Bill, 2018 for introduction in the Parliament.
of Bill x It is a part of the efforts of the Government to encourage institutional arbitration for settlement of
disputes and make India a centre of robust Alternative Dispute Resolution (ADR) mechanism.

x The amendments will facilitate speedy appointment of arbitrators through designated arbitral
institutions by the Supreme Court or a High court, without having any requirement to approach the
court in this regard.
x It provides for creation of an independent body namely the Arbitration Council of India (ACI) which
will grade arbitral institution and accredit arbitrators by laying down necessary norms and steps
necessary to promote and encourage Arbitration, Conciliation, Mediation and Other Alternate
Disputes Resolution (ADR) Mechanisms.
Salient x Evolve policy and guidelines for the establishment, operation and maintenance of uniform
Features of professional standards in respect of all matters relating to arbitration and ADR mechanism.
the Bill
x The Chairperson of ACI shall be a person who has been a Judge of the Supreme Court or Chief
Justice or Judge of any High Court or any eminent person.
x Other Members would include an eminent academician besides other Government nominees.
x ACI shall also maintain an electronic depository of all arbitral awards.
x The Bill provides that the time limit for arbitral award in other arbitrations shall be within 12
months from the completion of the pleadings of the parties.
x However, International Arbitrations are intended to be excluded from the proposed time limit of 12

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Constitution, Polity
and Governance

months. In the case of international arbitration, the relevant court would be the High Court as per
Amendment of 2015.
x The arbitrator and the arbitral institutions shall keep confidentiality of all ongoing arbitral
proceedings.
x The Bill also aims to protect an Arbitrator from suit or other legal proceedings for any action or
omission done in good faith in the course of arbitration proceedings.

LAW COMMISSION ON In lieu of reports of honour killings in the society and


nd
also by Khap Panchayats, Law Commission 242
FREEDOM OF Report had suggested a legal framework for
Prevention of Interference with the Freedom of
MATRIMONIAL ALLIANCES Matrimonial Alliances in the name of Honour and
#Report #Bill #Social Issue Tradition.

HONOUR KILLINGS & HONOUR CRIMES

x The words ‘honour killings’ and ‘honour crimes’ are generally used to
describe the incidents of violence and harassment caused to the young
couple intending to marry or having married against the wishes of the
community or family members.
x The belief that the victim has brought dishonour upon the family or the
community has been the root cause of such violent crimes.
x In some cultures, honour killings are considered less serious than other
murders because they arise from long standing cultural traditions and
are thus deemed appropriate or justifiable.

LAW COMMISSION AND DRAFTING OF BILL

The Law Commission in recognition of the need to protect autonomy of choices and liberty of adults in
taking matrimonial decisions who are exposed to threats and socio-economic deprivations has drafted
The Bill
a Bill - The Prohibition of Unlawful Assembly (Interference with Freedom of Matrimonial Alliances) Bill
2011.

x To curb social evil of caste councils/Panchayats interfering with and endangering the life and liberty
of young persons marrying partners belonging to same gotras or a different caste or religion.
x Prohibiting unlawful assembly or gathering of such members of Panchayats or Khaps to condemn
Aim of the
marriage and taking further action to harass or harm the young couple.
Bill
x Penalise honour killing with Imprisonment or Fine (or both) and uphold the right of adults to marry
persons of their own choice without unlawful interference from caste Panchayats or persons and
relatives’ intent on harming the couple.

x The proposed Bill has empowered District Magistrate and Sub-divisional Magistrate to prevent
such unlawful assembly and also take steps for prevention and protection of individuals
Measures threatened by such unlawful assembly.
for x The officials shall also be accountable for the failure or omission on their part to take necessary
protection steps to prevent unlawful assembly or to give protection to the targeted couple.
x Provides for steps to be taken for counseling and creating legal awareness in the society about
fundamental rights of citizens with respect to right to choice.

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Constitution, Polity
and Governance

x The Commission further suggests simplification of Special Marriage Act, 1954 and removing the
time gap between providing notice for marriage and registration of marriage.

x Such offences shall be tried by a Court of Sessions in the District presided over by the Sessions
Judge or Additional Sessions Judge as notified by the High Court.
Trial
x Supreme Court in the case of Bhagwandas v. NCT of Delhi has held that Honour killing shall be
treated as rarest of rare cases warranting death sentence for the accused.

Lack of utilisation of Nirbhaya Fund is regularly in news.


PROVISIONS UNDER The Ministry of Finance had set up a dedicated fund called
Nirbhaya Fund in 2013 post December 2012 rape case, for
NIRBHAYA FUND implementation of initiatives aimed at enhancing the
safety and security for women in the country. Let us
#Policy #Social Issue #Governance
understand the major provisions and actions taken.

ONUS FOR IMPLEMENTATION

x The Ministry of Women and Child Development is the nodal Ministry to appraise schemes under Nirbhaya Fund
and also to review and monitor the progress of sanctioned Schemes in conjunction with the line
Ministries/Departments.
x The Ministry of Finance has also set up an Empowered Committee under the Chairmanship of Secretary, Ministry of
Women and Child Development for appraising and approving various schemes/project proposals proposed to be
funded from the Nirbhaya Fund.
x Nirbhaya Fund was set up with an initial corpus of Rs. 1000 Cr. during 2013-14. Further, an amount of Rs 1000 Cr.
was provided in 2014-15 and for the financial years 2016-17 and 2017-18, an amount of Rs. 550 cr. (each financial
year) was provided under the Nirbhaya Fund.

IMPORTANT PROVISIONS UNDER NIRBHAYA FUND

Keeping in mind the need to have schematic interventions and proper mechanism for handholding
of women in distress, 3 schemes were initiated by the Ministry of Women and Child Development
Initiated from the Nirbhaya Fund i.e.
Schemes 1. One Stop Centre
2. Universalisation of Women Helpline and
3. Mahila Police Volunteer

x It is popularly known as Sakhi Centres and is being implemented across the country since 1st
One Stop April 2015.
Centre Scheme x It aims at establishing Centres to facilitate women affected by violence. It provides First aid,
Medical aid, Police assistance, Legal aid and counseling support.

x Helpline specifically for women with a common number across the country will link the One Stop
Centres being established by the Ministry of Women & Child Development.
Helpline
x The Department of Telecommunication has allocated the number 181 to all States/UTs for
Women Helpline.

Mahila Police x MPVs will act as a link between police and community and help women in distress.
Volunteers (MPVs) x Haryana has become the first state to start the Mahila Police Volunteer scheme.

Emergency x ERSS aims to integrate all emergency numbers to 112 with state of art technology.
Response support

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Constitution, Polity
and Governance

System (ERSS) x ERSS envisages an integrated computer aided emergency response platform to respond to
distress calls and ensure speedy assistance to the distressed persons.

x A Corpus Fund of Rs.200 crores to be disbursed to States/UT for Central Victim Compensation
Central Victim Scheme (CVCF).
Compensation x This will support States/UTs in providing fund towards compensation to the victim or her
Fund (CVCF) dependents who have suffered loss or injury as a result of the crimes including survivors of rape
and acid attack.

Integrated Emergency This project of Railways has been approved to provide round the clock security to women
Response passengers in Railway Stations by strengthening of Security Control Rooms of Railways with
Management System Security Helpline, Medical Facilities, RPF and police, installation of CCTV cameras, etc.

Abhaya Project This proposal is for ensuring the safety of women and girl child during journeys has been
Proposal proposed by Andhra Pradesh.

CHIRALI: x It is a scheme to constitute Community Action Groups in 7 districts of Rajasthan.


Friends x It’s objective is to create an enabling environment that would support girls and women to move
Forever freely and make use of choices, spaces and opportunities for their overall well-being.

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ECONOMIC DEVELOPMENT
# GS Paper (Prelims) & GS Paper III (Main)

NOTE: Economy is sometimes seen from the perspective of memorising facts and figures by the students. On
the contrary, facts and figures used in this section are mere indicators, depicting the state of the economy.
Hence, they are not to be memorized but understood in overall context by the students.

The Union Cabinet has recently approved the proposal to


FUGITIVE ECONOMIC introduce the Fugitive Economic Offenders Bill, 2018 in
OFFENDERS BILL 2018 Parliament. The Bill would help in laying down measures to
deter economic offenders from evading the process of Indian
#Bills law by remaining outside the jurisdiction of Indian courts.

The bill prescribes that the cases where the total value involved in such offences is Rs.100 crore or more will come
under its purview. This is to ensure that fugitives are not able to sell their assets while the legal proceedings are
underway.

WHY IS THIS BILL REQUIRED?

Current There have been several instances of economic offenders fleeing the jurisdiction of Indian
scenario courts, anticipating the commencement, or during the pendency, of criminal proceedings.

1. It hampers investigation in criminal cases;


Consequences 2. It wastes precious time of courts of law, and
3. It undermines the rule of law in India.

Non- Most of the cases of economic offences involve non-repayment of bank loans thereby worsening
repayment the financial health of the banking sector in India.

x The existing civil and criminal provisions in the law are not entirely adequate to deal with the
severity of the problem. (see the box below)
Inadequate x It is, therefore, felt necessary to provide an effective, expeditious and constitutionally
existing legal permissible deterrent to ensure that such actions are curbed.
framework x The Bill adopts the principle of: Non-conviction-based asset confiscation for corruption-
related cases enabled under provisions of United Nations Convention against Corruption
(Ratified by India in 2011).

In view of the above context, a Budget announcement was made by the Government in the Budget
Budget 2017-18 that the Government was considering to introduce legislative changes or even a new law to
Announcement confiscate the assets of such absconders till they submit to the jurisdiction of the appropriate legal
forum.

THE EXISTING LAWS FOR SEIZING ASSETS

PREVENTION OF MONEY INSOLVENCY AND


SARFAESI ACT, 2002 RDDBFI, 1993
LAUNDERING ACT (PMLA) BANKRUPTCY CODE, 2016

Under this act, lenders Proceeds of the crime are Involvement firms are either Under Recovery of Debt due to
can take possession of attached by the revived by creditors and Banks and Financial Institutions
the assets kept as Enforcement Directorate. interim resolution Act, a debt recovery tribunal can
security over non- professional or the assets are pass orders for the attachment of
repayment of loans. liquidated. assets that were given as security
on non-payment of dues/loans.

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Economic Development

SALIENT FEATURES OF THE BILL

Declaration
Application to be made before the Special Court
for a declaration that an individual is a fugitive
economic offender.

Attachment
Attachment of the property of a fugitive
economic offender

Confiscation
Confiscation of the property of an individual
declared as a fugitive economic offender
resulting from the proceeds of crime.

Disentitlement
Disentitlement of the fugitive economic offender
from defending any civil claim.

Proceeding cease to exist


If at any point of time in the course of the
proceeding prior to the declaration, the alleged
Fugitive Economic Offender returns to India and
submits to the appropriate jurisdictional Court,
proceedings under the proposed Act would
cease by law.

Entitlement
All necessary constitutional safeguards in terms
of providing hearing to the person through
counsel, allowing him time to file a reply, serving
notice of summons to him, whether in India or
abroad and appeal to the High Court have been
provided for.

IMPACT

The Bill is expected to re-establish the rule of law with respect to the fugitive economic offenders as
Rule of law
they would be forced to return to India to face trial for scheduled offences.

Better This would also help the banks and other financial institutions to achieve higher recovery from
recovery financial defaults.

Expeditious It is expected that the special forum to be created for expeditious confiscation of the proceeds of
confiscation crime, in India or abroad.

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Economic Development

High The bill is expected to plug gaps and provide a higher deterrent effect on economic offenders. Even
deterrent key managerial persons can be declared fugitives, if a court has issued warrant against them.
effect

CRITICISM

x The blanket ban on offenders contesting the confiscation of their properties through civil suits,
sale of property without trial, and deterioration in value of seized assets and finding suitable
buyers are some of the concerns around the new law.
Blanket ban,
x The blanket disentitlement from pursuing or defending any civil claim under the law should be
an issue
clarified and made reasonable.
x An absolute ban is contrary to the basic tenets of justice and fair play, besides being in violation
of the Indian Constitution.

x Another area where the bill may see a challenge is on selling the property without trial. Assets
Challenges in
confiscated by enforcement agencies and courts are termed as distressed properties, and seldom
selling
find buyers.
confiscated
x A case in point is Sahara’s Amby Valley, which has been unable to find suitable buyers for almost
property
a year. Another such case is of Kingfisher House in Mumbai.

Against Sale of property of a fugitive economic offender without adjudicating after a proper trial whether or
constitutional not the said person is actually liable for the offence, would amount to violation of the settled
principle principle under the Constitution that one is considered innocent unless proven guilty.

WAY FORWARD

x Disposal of seized property and the ban on contesting the sale of the property should be limited to cases where
mala fide intent has been established.
x An appeal against confiscation of property should be allowed only in Supreme Court for the speedier resolution.
Currently, the bill allows an appeal in High courts.
x To avoid the failed attempts to sale, the bill should provide for time limits for disposal and encashment of
property, separate limits for movable-immovable property and running business.
x To further strengthen the actions against the fugitive economic offenders, the bill should provide separate
provisions for dealing with siphoning off of funds, round-tripping, and employing any scheme or edifice to cause
loss.

NATIONAL FINANCING The Union Cabinet has recently approved the proposal
for the establishment of National Financial Reporting
REPORTING AUTHORITY Authority (NFRA). The authority is intended to serve as
#Institution an independent regulator for the auditing profession.

For this, the Companies Act, 2013 gives the Centre the power to set up such an authority. A Parliamentary Standing
Committee on Finance had also recommended that the National Advisory Committee on Accounting Standards
proposed in the Companies Bill, 2009 be institutionalised.

THE NEED for establishing NFRA has arisen on account of the need felt across various jurisdictions in the world
9 in the wake of accounting scams;
9 to establish independent regulators, independent from those it regulates;

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Economic Development

9 for enforcement of auditing standards and ensuring the quality of audits to strengthen the independence of audit
firms, quality of audits; and
9 to enhance investor and public confidence in financial disclosures of companies.

KEY PROVISIONS

Composition The body will consist of a chairperson, three full-time members and a Secretary.

x The jurisdiction of NFRA for investigation of Chartered Accountants and their firms under
section 132 of the Act would extend to listed companies and large unlisted public companies.
Jurisdiction
x The Central Government can also refer such other entities for investigation where the public
interest would be involved.

x The inherent regulatory role of ICAI as provided for in the Chartered Accountants Act, 1949
Role of The
shall continue in respect of its members in general and specifically with respect to audits
Institute of
pertaining to private limited companies, and public unlisted companies below the threshold
Chartered
limit to be notified in the rules.
Accountants
x Further, ICAI shall continue to play its advisory role with respect to accounting and auditing
of India (ICAI)
standards and policies by making its recommendations to NFRA.

Role of Quality The QRB will also continue quality audit in respect of private limited companies, public unlisted
Review Board companies below a prescribed threshold and also with respect to the audit of those companies
(QRB) that may be delegated to QRB by NFRA.

THE IMPACT: The decision is expected to result in


9 improved foreign/domestic investments;
9 enhancement of economic growth;
9 supporting the globalisation of business by meeting international practices; and
9 assist in further development of audit profession.

RELATED INFORMATION
Î THE INSTITUTE OF CHARTED ACCOUNTANTS OF INDIA (ICAI)

x ICAI is a statutory body established by an Act of Parliament, viz. The Chartered Accountants Act,
1949 for regulating the profession of Chartered Accountancy in the country.
About the x The Institute, functions under the administrative control of the Ministry of Corporate Affairs,
body Government of India.
x The ICAI is the second largest professional body of Chartered Accountants in the world, with a
strong tradition of service to the Indian economy in public interest.

x The affairs of the ICAI are managed by a Council in accordance with the provisions of the
Chartered Accountants Act, 1949 and the Chartered Accountants Regulations, 1988.
x The Council constitutes of 40 members of whom
Composition 9 32 are elected by the Chartered Accountants; and
9 remaining 8 are nominated by the Central Government generally representing the Comptroller
and Auditor General of India, Securities and Exchange Board of India, Ministry of Corporate Affairs,
Ministry of Finance and other stakeholders.

Following are the functions of ICAI:


Functions x Regulate the profession of Accountancy;
x Conduct Education and Examination of Chartered Accountancy Course;

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Economic Development

x Continuing Professional Education of Members;


x Conducting Post Qualification Courses;
x Formulation of Accounting Standards such as prescription of Standard Auditing Procedures; laying
down Ethical Standards; monitoring Quality through Peer Review; ensuring Standards of
performance of Members; exercising Disciplinary Jurisdiction;
x Financial Reporting Review;
x Input on Policy matters to Government;

Î QUALITY REVIEW BOARD FOR QUALITY AUDIT

x Under the Chartered Accountants Act, 1949, consequent to the Chartered Accountants
What? (Amendment) Act, 2006, the Central Government is empowered to constitute a QRB.
x The first QRB was constituted by the Central Government in 1949.

As per the Chartered Accountants Act, 1949, the Board shall perform the following functions: -
(a) to make recommendations to the council with regard to the quality of the services provided by the
members of the institute;
Functions of
(b) to review the quality of services provided by the members of the institute including audit services;
the board
and
(c) to guide the members of the institute to improve the quality of services and adherence to the
various statutory and other regulatory requirements.

x The board consists of a chairperson and ten other members.


x The Chairperson and members of the Board are appointed from amongst the persons of
eminence having experience in the field of law, economics, business, finance or accountancy.
Composition
x Five members of the Board are nominated by the Council of the Institute of Chartered
Accountants of India (ICAI) and the Chairperson and other five members are nominated by the
Central Government.

DRAFT NATIONAL AUTO The Department of Heavy Industries and Public


POLICY Enterprises has recently released a draft National Auto
Policy. Let us understand it.
#Policy #Manufacturing
STATUS OF AUTO SECTOR IN INDIA

Status x Two decades of robust growth have propelled India from being a net importer of automobiles to a
leading manufacturer and exporter of vehicles and components.
x By volume, India is the fifth largest vehicle manufacturer in the world.
x It is the largest manufacturer of two-wheelers, three-wheelers and tractors, fourth largest in
manufacture of light commercial vehicles and fifth largest in manufacture of heavy commercial
vehicles.
x It is estimated that by 2020 the automobile industry in India will be the third largest in the World
after China and USA.

Govt. Starting with the de-licensing of the domestic automotive market in 1991, growth of the industry has
Efforts been galvanized by several sector focused policies and initiatives introduced through Auto Policy 2002,
Automotive Mission Plan(AMP) 2006-16, National Electric Mobility Mission Plan (NEMMP) 2020 and AMP

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Economic Development

2016-26.

KEY RECOMMENDATIONS DRAFT NATIONAL AUTO POLICY

x The Policy proposes lowering of import duties.


x This applies to capital goods, equipment, and machinery for the manufacture of new technology
components.
Import duty
x Companies will have to declare at the beginning of every financial year the volume of prototypes
planned to be imported.
x The import duty exemption to companies will be given only on this pre-declared volume.

x The policy emphasizes fast-tracking widespread adoption of green mobility in India.


x It calls for mandating a minimum share of green vehicles among those purchased by the
Green government and municipal agencies.
mobility x Accordingly:
9 central and state governments - 25% from 2023 and 75% from 2030
9 municipal corporations in metros - 50% from 2023 and 100% from 2030

x The policy eyes adoption of a long-term roadmap for emission standards.


x It proposes to define emission standards that will be applicable after BS-VI.
x The standards will be with a target of harmonizing them with the most stringent global standards
by 2028.
Emission
x Introduction of new norms will be initiated in 2026 with a 2-year phase-in period.
x It also envisions the Corporate Average Fuel Economy (CAFE) norms till 2025 and beyond.
x These norms are for improving the average fuel economy of vehicles and fix incentives or
penalties.

x The draft policy suggests utilising the Government e-Marketplace (GeM) portal.
GeM Portal x This is to aggregate all green vehicle orders with standard specifications and enable bulk
procurement.

x The policy recommends conducting a detailed study on the requirement of public


Infrastructure
infrastructure for green vehicles.

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Economic Development

x This is to make the necessary infrastructure investments for green mobility.

x The policy proposes improving the skill development and training eco-system.
x It advocates increasing the accountability of Automotive Skills Development Council (ASDC)
Skill to achieve this.
Development x Performance-based funding is suggested as a measure.
x Performance metrics include incremental employment generated, level of employment,
curriculum coverage, etc.

x The draft policy suggests ASDC to implement a Labour Market Information System (LMIS). This
is to facilitate aggregated information of certified candidates.
Employment
x It also serves as a marketplace to match demand and supply of skilled labour.
x It thereby helps boost employment creation in the sector.

x The policy entails incentivising Public Private Partnership (PPP) based industry investments.
x This is particularly for research and development of commercially viable technologies through a
Hybrid Annuity Model (HAM).
Investment x The policy also calls for encouraging FDI in the country's Automobile sector.
x This is proposed to be in coordination with Invest India to attract investments in identified areas.
x Initiating trade pacts with countries with attractive markets for Indian automotive exports is also
called for.

x Besides, the draft auto policy also suggests setting up of a 'technology acquisition fund'.
x It proposes the creation of a nodal body with a two-tier structure having an Apex Body supported
Other by the National Automotive Council (NAC).
x The apex body will have government representatives as well as stakeholders nominated from the
industry and academia.

OPPORTUNITIES AND CHALLENGES

Factor Challenges Opportunities

The mandates for the automotive industry in


Policy There is an opportunity to adopt a more
India are currently being decided or
instability and transparent and robust basis for major regulatory
influenced by multiple stakeholders, which
governance and policy changes which is backed by strong
may, at time, lead to unforeseen and abrupt
issues scientific or commercial analysis.
changes for the industry.

Currently, the industry needs a long-term Better alignment between the planning required
Long-term
visibility of automotive regulations in India. for automotive investments and announcements
industry
Absence of it will hurt the future requirement and implementation timeline for regulatory change
roadmap
of technologies, testing and skills. can facilitate better investments in the sector.

The domestic research and development eco-


Technological progress of the automotive
system has significant potential which can be
Technology industry in India has been restricted by
tapped by increased levels of investments in
access and limited access to emerging technologies and
building domestic engineering capabilities and
R&D expertise innovations.
better collaboration between industry and
academia.

Shortage of The automotive industry in India is in


By increasing penetration of vocational education
skilled continuous need of skilled manpower, given
and training in auto sector this gap can be bridged.
manpower the limited training capacity and employability

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Economic Development

of the trained workforce.

Inadequate development of logistics and An expansion and competitiveness of the


Supply Chain
supply chain infrastructure in India leads to automotive industry can significantly reduce the
Infrastructure
inefficiencies, delays and high costs. inefficiency in supply chain infrastructure in India.

WAY FORWARD

x The domestic demand for automobiles is

expected to remain strong as only 20.3

out of every 1,000 Indians own a car,

among the world’s lowest rates.

x An expanding car market

counterbalanced by rapid population

growth with a large young population and

rising incomes is expected to raise this to

29.5 per 1,000 by 2019.

x The growth in auto sector should be

supplemented with higher safety

standards, technological improvement,

and measures to reduce pollution and

congestion.

x With the growing environmental and

sustainability consciousness, the efforts

need to enhance in Green Mobility

technologies (such as Hybrid Vehicles,

Battery Electric Vehicles, Fuel Cell

Vehicles, and Alternative-Fuel Vehicles).

st
India has been ranked 81 among 180 countries in the Corruption
CORRUPTION Perception Index for 2017. This year, it fell two spots compared to
PERCEPTION INDEX th
last year when it was ranked at 79 place. Further, the index also
singled out India as one of the worst offenders in the Asia-Pacific
# Index region.

ABOUT ‘CORRUPTION PERCEPTION INDEX’

x The CPI scores and ranks countries/territories based on how corrupt a country’s public sector is
What? perceived to be by experts and business executives.
x It is a composite index, a combination of 13 surveys and assessments of corruption, collected by a

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variety of reputable institutions.


x The CPI is the most widely used indicator of corruption worldwide.
x It uses a scale of 0 to 100, where 0 denotes highly corrupt and 100 very clean.

CPI source data captures the


following aspects of corruption,
based on the specific question
wording used to collect the data:
x Bribery;
x Diversion of public funds;
x Prevalence of officials using
public office for private gain
without facing consequences;
x Ability of governments to contain
corruption and enforce effective
integrity mechanisms in the
public sector;
Aspects of x Red tape and excessive
corruption bureaucratic burden which may
covered increase opportunities for
corruption;
x Meritocratic versus nepotistic
appointments in the civil service;
x Effective criminal prosecution for
corrupt offic ials;
x Adequate laws on financial
disclosure and conflict of interest
prevention for public officials;
x Legal protection for
whistleblowers, journalists,
investigators when they are reporting cases of bribery and corruption;
x State capture by narrow vested interests;
Access of civil society to information on public affairs.

CPI source data does not capture the following aspects of corruption:
x Citizen perceptions or experience of corruption;

Aspects of x Tax fraud;


corruption- x Illicit financial flows;
not x Enablers of corruption (lawyers, accountants, financial advisors etc.);
covered x Money-laundering;
x Private sector corruption;
x Informal economies and markets.

Publishing The index is released annually by Berlin-based Non-governmental organization Transparency


agency International.

OVERALL FINDINGS

Major highlight x This year’s Corruption Perceptions Index highlights that the majority of countries are

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Economic Development

making little or no progress in ending corruption.


x It found out that more than two-thirds of countries score below 50, with an average score of
43.
x Unfortunately, compared to recent years, this poor performance is nothing new.

x This year, New Zealand with the highest score ranked 1st. It is followed by Denmark, Finland,
Norway and Switzerland at 2nd, 3rd, 4th and 5th place, respectively.
x Somalia ranked lowest at 180th place. South Sudan and Syria ranked at 179th and 178th place,
Ranking
respectively.
x Region wise- The best performing region is Western Europe whereas Sub-Saharan Africa is
the worst performing regions.

Transparency International calls on the global community to take the following actions to curb
corruption:
x Governments and businesses must do more to encourage free speech, independent media,
political dissent and an open and engaged civil society.
x Governments should minimise regulations on media. In addition, international donors should
consider press freedom relevant to development aid or access to international organisations.
x Civil society and governments should promote laws that focus on access to information. This
access helps enhance transparency and accountability while reducing opportunities for
Recommendation
corruption.
to curb
x Governments should invest in an appropriate legal framework for such laws, and also commit
corruption
to their implementation.
x Activists and governments should take advantage of the momentum generated by the United
Nations Sustainable Development Goals (SDGs) to advocate and push for reforms at the
national and global level.
x Governments must ensure access to information and the protection of fundamental
freedoms and align these to international agreements and best practices.
x Governments and businesses should proactively disclose relevant public interest information
in open data formats.

INDIA SPECIFIC FINDINGS

Among x India has been ranked worse than Bhutan (26th) and China (77th)
Neighbouring x India fares better than Sri Lanka (91st), Pakistan (117th), Myanmar (130th), and Bangladesh
countries (143rd).

Among BRICS In the BRICS block of major emerging economies, South Africa is ranked the best (71st), followed
countries by China and India, while Brazil is at 96th and Russia at 135th.

Score Though India slipped two ranks compared to last year, its score remained unchanged at 40.

x As per the index, The Philippines, India and the Maldives are among the worst regional
offenders in this respect.
Offender
x These countries score high for corruption and have fewer press freedoms and higher
numbers of journalist deaths

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AN ANATOMY OF PNB FRAUD CASE


#Finance and Banking

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LINKING SWIFT TO CORE


The Reserve Bank of India (RBI) has directed banks to
BANKING BECOMES link the SWIFT (Society for World Interbank Financial
Telecommunication System platform) with their core
MANDATORY FOR BANKS banking solution (CBS) by April 30, 2018.
# Finance and Banking

x The PNB fraud case is largely attributed to the failure of SWIFT-CBS link.
x Nirav Modi allegedly acquired fraudulent letters of undertaking (LoU) from PNB’s Brady House
branch in Mumbai to secure overseas credit from other Indian lenders using the SWIFT system
Background
which was not linked to CBS.
x In light of the incident, there is an urgent need for banks to revisit their surveillance system and plug
the loopholes.

What is
Core banking refers to a centralised system established by a bank which allows its customers to
core
conduct their business irrespective of the bank's branch.
banking?

x The SWIFT system promoted in 1973 by banks globally is used to transmit messages relating to
cross border financial transactions.
What is
x Globally over 11,000 financial institutions in more than 200 countries use the services of SWIFT
SWIFT?
which is viewed as secure.
x On receiving this message through SWIFT, banks abroad, mostly branch of Indian banks abroad,

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Economic Development

especially in the case of Indian firms provide funds to the company.


x This credit which is against import documents is normally for 90 days and this facility is used
regularly especially by companies which are in the business of gold, gems and jewellery.
x This is essentially a short term foreign currency loan on which banks charge say 60 to 90 basis
points over the London Interbank Offered Rate or Libor — the international benchmark for pricing
loans or lending.
x Companies take recourse to this form of funding as the costs of raising money overseas are
relatively lower compared to rupee funding.

x It’s an explicit undertaking offered by a bank to another bank on behalf of its customer, who is
importing goods from overseas.
What is x Backed by the LoU, the overseas bank gives the so-called buyer’s credit to the importer.
LoU? x The bank which gives the LoU earns a fee, typically 0.2-0.25% of the amount; the bank which gives
the buyer’s credit earns interest (Libor, or London Interbank offered rate, plus a spread, depending
on the profile of the customer); and the importer gets a cheap line of foreign credit.

x Buyer’s credit is a short-term credit available to a buyer (importer) from overseas lenders such as
Buyer’s
banks and other financial institutions for goods being imported.
credit
x The overseas banks usually lend the importer on the basis of a LoU issued by the importer’s bank.

Dun & Bradstreet, a leading provider of international and


PORT LOGISTICS: ISSUES Indian business information, working on behalf of Niti
Aayog, recently released the 'Port Logistics: Issues &
AND CHALLENGES IN Challenges in India’ report. The report emphasizes that
India needs to address its port ecosystem if it has to
INDIA achieve the ambitious target of having a 5% share in
# Infrastructure world exports and climb up the ranks in ‘ease of doing
business’.

MAJOR HIGHLIGHTS

India has set an ambitious export target.

To achieve a target of 5% share in world exports, India’s exports need to grow at an average rate of
over 26% for the next five years.

Why Port
This would require increasing its product competitiveness.
Infrastructure?

Enhancing product competitiveness in the global market, in turn, needs infrastructure for trade to
improve.

Ports are a critical part of trade infrastructure.

Port x The study introduces a ‘Port Performance Index’ as an attempt to benchmark performance of
Performance various ports by combining qualitative perception of stakeholders with quantitative outcome
Index based data.

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Economic Development

x Three broad categories of database/information have been taken into consideration for the
construction of the Port Performance Index, i.e. primary quantitative, primary qualitative
and secondary quantitative.

x On this basis
9 Good- 3 ports (Jawaharlal Nehru Port Trust, Kamarajar, and Vizag) have received ‘Good’ score.

9 Average- 7 ports (Cochin, Kandla, Paradip, Chennai, Mormugao, New Mangalore and V.O.
Chidambaranar Port Trust) have received ‘Average’ score.

9 Poor- 3 ports (Haldia, Kolkata and Mumbai Port Trust) have received ‘Poor’ score.

Overall, India’s 13 major ports and one non-major port Mundra handle around 67% of India’s
maritime trade.

x The report says that processes and operations across India’s ports are not standardized or
uniform

x Costs and time for key processes are unpredictable in Indian Ports.
Problem with
x There is an unacceptable level of variation across ports as well as within ports.
Port logistics
x The report further listed five issues—port congestion, customs clearance, shipping line
issues and charges, documentation and paperwork and regulatory clearances—as the
major hurdles leading to detention and demurrage challenges faced by traders.

POLICY SUGGESTIONS PRESCRIBED BY THE REPORT

x Promote Direct Port Delivery & Direct Port Entry to facilitate container trade;

x Ensure transparency in Shipping line charges & operations and regulate Shipping lines/promote domestic
Shipping lines;

x Common digital platform – Bring all stakeholders on a single platform which can be named as “National
Portal for Cargo Facilitation (NPCF)”;

x Enhance customs clearance process;

x Promote 24x7 operations across stakeholders;

x Periodical performance audits/monitoring of terminals & resolution of tariff disputes;

x Standardise trade processes across ports and stakeholders;

x Consolidate Container Freight Station (CFS), convert them into warehouses and link all with railways;
x Augment rail infrastructure & operations;

x Overhaul physical infrastructure & enhance productivity;

x Rationalise documentation and process all documents through NPCF;

x Provide the timeframe for regulatory clearances.

The All-India CRISIL Inclusix for the country has improved to 58.0 at
CRISIL INCLUSIX the end of fiscal 2016 from 50.1 at the end of fiscal 2013. Two major
#Index #Growth and factors attributed to this - a significant increase in the number of
deposit accounts, largely because of the Jan-Dhan initiative and sharp
Development increase in the number of credit accounts across regions.

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CRISIL INCLUSIX

What? x It is India’s first comprehensive measure of financial inclusion in the form of an index.
x It was launched in 2013 with the objective of becoming that crucial gauge and policy input.

Parameters x It is a relative index that has a scale of 0 to 100.


x A CRISIL Inclusix score of 100 indicates the ideal state for each of its parameters.
x It combines four very critical parameters of basic financial services — branch penetration (BP),

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Economic Development

deposit penetration (DP), and credit penetration (CP) and Insurance penetration — into one
single metric.
x The last dimension was added for the first time this year as data became available.
x For each of these parameters, CRISIL evaluates financial inclusion at the national/ regional/ state/
district level vis-à-vis a defined ideal.

Coverage x CRISIL Inclusix measures progress on financial inclusion down to the level of each of the 666
districts in the country.
x It is based on the data provided by the RBI, the Micro-Finance Institution Network, and the
Insurance Information Bureau of India.

MAJOR FINDINGS (2017-18)

The index’s readings for fiscal 2016 (the latest period for which data is available) show financial
Overall
inclusion has improved significantly in India, with the all-India score rising to 58.0 in fiscal 2016,
Score
compared with 50.1 in fiscal 2013.

Number of x As many as 600 million deposit accounts were opened between fiscals 2013 and 2016, or twice the
accounts number between 2010 and 2013.
opened x Nearly a third of this was on account of Jan Dhan.

x On the credit side, there was a sharp 31.7 million increase in new credit or loan (banks and
Microfinance microfinance) accounts in the two years up to fiscal 2016, which is the most since fiscal 2013.
Accounts x Notably, microfinance institutions contributed significantly to the financially under-penetrated
regions.

x The Digital India initiative, payments banks and small finance banks have all helped improve the
Improving
reach of formal financial services to economically disadvantaged sections of the populace and
the
geographically remote regions.
Geographical
x Underserved pockets, particularly in the North-East and the east, have logged a sharp rise in credit
Reach
penetration.

Formal Despite the strong growth, only 200 million borrowers have had access to credit from formal
Channel channels.

Branch In terms of branch penetration, the number of new branches opened by lenders has declined
Penetration because they are betting more on the digital channels (mobile phones/internet).

Region-wise Among regions, the south remains ahead by a wide margin, but other regions are catching up thanks
performance to the spread of microfinance, particularly in the east.

State-wise Among states, Kerala is well ahead while Rajasthan moved up from “below average” to “above
performance average” and Haryana from “above average” to “high”.

WAY FORWARD

x The upshot from the scores is that financial inclusion can spread faster if there is sharper focus on enhancing
branch and credit penetration beyond south India.
x Policy makers need to continue incentivizing branch and credit penetration in districts with low CRISIL Inclusix
scores.
x Coverage through protection-linked insurance and pension schemes also needs to be built up significantly.

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In order to remove existing ambiguities due to multiple


AMENDMENT IN SMALL Acts and rules for Small Saving Schemes, the
Government of India has proposed the merger of
SAVINGS ACT Government Savings Certificates Act, 1959 and Public
#Act #Scheme Provident Fund Act, 1968 with the Government Savings
Banks (GSB) Act, 1873.

GSB Act covers Post Office Savings Bank, and banking companies or any other company or institution that the central
government may include in this Act.

SMALL SAVING SCHEME (SSS) & NATIONAL SMALL SAVINGS FUND (NSSF)

The Central Government operates Small Savings Schemes (SSS) through the nationwide network of
SSS about 1.5 lakh post offices, more than 8,000 branches of the Public-Sector Banks and select private
sector banks and more than 5 lakh small savings agents.

x Collections from all small savings schemes are credited to the NSSF.
NSSF
x NSSF was established in 1999 within the Public Account of India

x The NSSF is administered by the Government of India, Ministry of Finance under National Small
Administration Savings Fund Rules, 2001, which is derived from Article 283(1) of the Constitution.
of SSS or NSSF x Funds collected under SSS are the liabilities of the Union government accounted for in the Public
Accounts of India and the government acts like a banker or trustee.

x SSS helps to support the social security objectives at the same time, helping as a tool of
resource mobilization for the government.
Use of SSS
x The NSSFs will be used by the centre and the interest and principal will be the liability of the
central government. Previously, states have used the proceeds from NSSF.

SMALL SAVING SCHEMES OF CENTRAL GOVERNMENT

1. Post Office Deposits

Post office x No tax deduction at source (TDS).


Monthly
x No tax rebate is applicable.
Income
Scheme (MIS) x Non-Resident Indian / HUF (Hindu Undivided Family) cannot open an Account.

x Interest Tax Free.


Post-Office
x Any individual can open an account.
Savings
Account x Group Account, Institutional Account, other Accounts like Security Deposit account & Official
Capacity account are not permissible.

x Interest income is taxable.

Post Office x Account can be pledged as security against a loan to banks/ Government institutions.
Time Deposit x Any individual (a single adult or two adults jointly) can open an account.
Scheme x Group Accounts, Institutional Accounts are not permissible.
x Trust, Regimental Fund or Welfare Fund not permissible to invest.

2. Social Security Schemes

Public x Interest is completely tax-free.


Provident x Non-Resident Indians (NRIs) not eligible.

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Fund (PPF) x An individual cannot invest on behalf of HUF (Hindu Undivided Family) or Association of persons.
x Ideal investment option for both salaried as well as self- employed classes.

x Age should be 60 years or more, and 55 years or more but less than 60 years who has retired
under a Voluntary Retirement Scheme or a Special Voluntary Retirement Scheme on the date of
opening of the account within three months from the date of retirement.
Senior x No age limit for the retired personnel of Defence services provided they fulfill other specified
Citizen’s conditions.
Savings
x The account may be opened in individual capacity or jointly with spouse.
Scheme
x TDS is deducted at source on interest if the interest amount is more than Rs 10,000/- per annum.
x Non-resident Indians (NRIs) and Hindu Undivided Family (HUF) are not eligible to open an
account.

x A legal Guardian/Natural Guardian can open account in the name of Girl Child.
x A guardian can open only one account in the name of one girl child and maximum two accounts
in the name of two different Girl children.
x Account can be opened up to age of 10 years only from the date of birth. Account can be closed
Sukanya
after completion of 21 years.
Samriddhi
x Normal Premature closure will be allowed after completion of 18 years provided that girl is
Account
married.
x Partial withdrawal, maximum up to 50% of balance standing at the end of the preceding financial
year can be taken after Account holder’s attaining age of 18 years.
x Minimum deposit-Rs 1000 per financial year and maximum deposit Rs 150000 in a financial year.

3. Saving Certificate

National x Minimum investment Rs. 100/-. No maximum limit for investment.


Savings x No tax deduction at source.
Certificate x Certificates can be kept as collateral security to get loan from banks.
(NSC) x Trust and HUF cannot invest.

x Amount Invested matures in 115 months.


x Certificate can be purchased by an adult for himself or on behalf of a minor or by two adults.
x KVP can be purchased from any Departmental Post office.
Kisan Vikas
x Facility of nomination is available.
Patra
x Certificate can be transferred from one person to another and from one post office to another.
x Certificate can be encash after 2 & 1/2 years from the date of issue.
x Minimum deposit Rs 1000 and maximum- no limit

KEY AMENDMENTS IN SMALL SAVINGS ACT

x With a single act, relevant provisions of the Government Savings Certificates (NSC) Act, 1959 and
the Public Provident Fund Act, 1968 would stand subsumed in the new amended Act without
compromising on any of the functional provision of the existing Act.
x All existing protections have been retained while consolidating PPF Act under the proposed
Consolidation Government Savings Promotion Act. No existing benefits to depositors are proposed to be
taken away through this process.
x The main objective in proposing a common Act is to make implementation easier for the
depositors as they need not go through different rules and Acts for understanding the provision
of various small saving schemes, and also to introduce certain flexibilities for the investors.

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x Premature closure- As per PPF Act, the PPF account can’t be closed prematurely before
completion of five financial years.
x Guardian’s rights-Investment in Small Savings Schemes can be made by Guardian on behalf of
minor(s). Under the provisions made in the proposed bill, guardian may also be given associated
rights and responsibilities.
x Saving among children-There was no clear provision earlier regarding deposit by minors in the
existing Acts. The provision has been made now to promote the culture of savings among
children.
Other x Provision for differently-abled- There were no clear provisions in all the three Acts for the
provisions operation of accounts in the name of physically infirm and differently-abled persons. Provisions in
this regard have now been made.
x Right of nominees- Right of nominees has now been more clearly defined.
x Account for minors- Provisions for the nomination with regard to the account opened in the
name of minors has been incorporated. Further, the provision has been made that if the minor
dies and there is no nomination, the balances shall be paid to the guardian.
x Grievance redressal- The existing Acts are silent about grievance redressal. The amended Act
allows the Government to put in place mechanism for redressal of grievances and for amicable
and expeditious settlement of disputes relating to Small Savings.

The Central Cabinet approved the methodology for auction of

OPENING OF COAL coal mines / blocks for sale of coal under the Coal Mines
(Special Provisions) Act, 2015 and the Mines and Minerals
MINES FOR PRIVATE (Development and Regulation) Act, 1957. Opening of
commercial coal mining for private sector is seen as the most
SECTOR #Industry ambitious coal sector reform since the nationalisation of this
sector in 1973.

ABOUT THE DECISION

x It is to be noted that the Supreme Court of India in 2014 had cancelled 204 coal mines/blocks
allocated to the various Government and Private Companies since 1993 under the provisions of
Background Coal Mines (Nationalisation) Act, 1973.
x To bring transparency and accountability, the Coal Mines (Special Provisions) Bill 2015 was passed
by the Parliament which was later notified in 2015.

Provisions x Enabling provisions have been made in the Coal Mines (Special Provisions) Act, 2015 for allocation
under the of coal mines by way of auction and allotment for the sale of coal.
Coal Mines x The methodology gives the highest priority to transparency, ease of doing business and ensures
(Special that natural resources are used for national development.
Provision) x The auction will be an ascending forward auction whereby the bid parameter will be the price
Act, 2015 offer in ₹/tonne which will be paid to the State Government on the actual production of coal.

x ‘Ascending forward auction’: It is a two-stage online auction comprising (i) technical bid and (ii)
financial bid with initial and final price offers.
The x The ‘highest bidder in the e-auction will be designated as the Preferred Bidder, and, following the
Methodology governmental approval and submission of required documents including performance security, it
shall be awarded the mining lease as the successful bidder. There will be no curbs on the sale or
use of coal from the mine.

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Economic Development

BENEFITS

x This reform is expected to bring efficiency into the coal sector by moving from an era of
monopoly to competition.
Efficiency
x It will increase competitiveness and allow the use of best possible technology into the
sector.

The higher investment will create direct and indirect employment in coal bearing areas
Employment
especially in mining sector and will have an impact on economic development of these regions.

It will also lead to energy security as 70% of India’s electricity is generated from thermal power
Energy Security
plants.

This reform will ensure assured coal supply, accountable allocation of coal and affordable coal
Affordable Prices
leading to affordable power prices for consumers.

As the entire revenue from the auction of coal mines for sale of coal would accrue to the coal
Incentivise Coal
bearing States, this methodology shall incentivise them with increased revenues.
Producing States
States in Eastern part of the country will be especially benefited.

Development of
Coal bearing states can now utilize enhanced revenue for the development of backward areas
Inhabitants/Tribal
and their inhabitants including tribals.
Areas

NATIONAL PRODUCTIVITY It is the 60th Anniversary of the ‘National Productivity


Council’ which is being celebrated as Diamond Jubilee
COUNCIL #Institution Year.

NATIONAL PRODUCTIVITY COUNCIL (NPC)

x NPC is national level organization to promote productivity culture in India.

x It was established by the Ministry of Industry, Government of India in 1958.

x It is an autonomous, multipartite, non-profit organization with equal representation from


About employers’ & workers’ organizations and Government, apart from technical & professional
institutions and other interests.

x NPC is a constituent of the Tokyo-based Asian Productivity Organisation (APO), an Inter-


Governmental Body, of which the Government of India is a founder member.

x NPC teams up with its clients to work out solutions towards accelerating productivity, enhancing
competitiveness, increasing profits, augmenting safety and reliability and ensuring better quality.

x It provides reliable database for decision-making, improved systems and procedures, work culture
Functions as well as customer satisfaction both internal & external.

x It helps monitor, review and implement the identified strategies.

x The Council promotes a comprehensive view of productivity focused on improving triple bottom
line – economic, environmental and social.

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In order to facilitate the orderly growth of the Chit Funds


THE CHIT FUNDS sector and remove bottlenecks being faced by the Chit
(AMENDMENT) BILL, 2018 Funds industry, the government has given the approval to
introduce the Chit Funds (Amendment) Bill, 2018 in the
#Bill Parliament.

AMENDMENTS
The Bill proposes to introduce following amendments to the
Chit Funds Act, 1982

Use of the words "Fraternity Fund" for chit


business in the Chit Funds Act, 1982, to
Fraternity
signify its inherent nature, and distinguish
Fund
its working from "Prize Chits" which are
banned under a separate legislation.

The bill proposes to allow the two


minimum required subscribers to join
through video conferencing for the
Subscribers
conduct of the draw of the Chit and for the
preparation of the minutes of the
proceedings.

The bill proposes to Increase the ceiling of


foreman's commission from a maximum of
Foreman’s 5% to 7%, as the rate has remained static
Commission since the commencement of the Act while
overheads and other costs have increased
manifold.

The bill seeks to remove the ceiling of one


hundred rupees set in 1982 at the time of
framing the Chit Funds Act.
Ceiling
The State Governments are proposed to be
allowed to prescribe the ceiling and to
increase it from time to time.

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Economic Development

On account of rising instances of illicit deposit-taking


THE BANNING OF schemes, the Government in the Budget 2016-17 had
announced that a comprehensive central legislation
UNREGULATED DEPOSIT would be brought to deal with the issue. As a result, the
Union Cabinet has given the approval to introduce the
SCHEMES BILL, 2018 Banning of Unregulated Deposit Schemes Bill, 2018 in
#Bill Parliament. The bill is aimed at tackling the menace of
illicit deposit-taking activities in the country.

SALIENT FEATURES OF THE BILL

Banning The Bill contains a substantive banning clause. It bans Deposit Takers from promoting, operating,
clause issuing advertisements or accepting deposits in any Unregulated Deposit Scheme.

The Bill creates three different types of offences, namely,


Types of 9 running of Unregulated Deposit Schemes;
offence 9 fraudulent default in Regulated Deposit Schemes; and
9 wrongful inducement in relation to Unregulated Deposit Schemes.

x The Bill provides for severe punishment and heavy pecuniary fines to act as a deterrent.
x The Bill has adequate provisions for disgorgement or repayment of deposits in cases where such
Punishment schemes nonetheless manage to raise deposits illegally.
provision x The Bill provides for attachment of properties/ assets by the Competent Authority, and
subsequent realization of assets for repayment to depositors.
x Clear-cut time lines have been provided for attachment of property and restitution to depositors.

Online central The Bill enables creation of an online central database, for collection and sharing of information on
database deposit taking activities in the country.

x The Bill defines "Deposit Taker" and "Deposit" comprehensively.


x "Deposit Takers" include all possible entities (including individuals) receiving or
Definition of soliciting deposits, except specific entities such as those incorporated by legislation.
Terms x "Deposit" is defined in such a manner that deposit takers are restricted from camouflaging public
deposits as receipts, and at the same time not to curb or hinder acceptance of money by an
establishment in the ordinary course of its business.

Courts’ role The bill seeks to designate the Courts to oversee repayment of depositors and to try offences.

State as Being a comprehensive Union law, the Bill adopts best practices from State laws, while entrusting
implementing the primary responsibility of implementing the provisions of the legislation to the State
agency Governments.

In-shorts
Î Hunar Haat
x Hunar Haats are being organised by the Minority Affairs Ministry to provide an opportunity, as well as domestic and
international exposure to the master artisans from across the country.
x It has been proved to be an effective mission to provide market & opportunities to the talent of master artisans and
craftsmen from across the nation.

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Economic Development

Î Women Entrepreneurship Council


x The Ministry of Women and Child Development is considering establishing National Women Entrepreneurship
Council (NWEC).
x NWEC will promote entrepreneurship as it would be the umbrella organization for socio-economic gender parity,
financial inclusion and economic empowerment of women in India.

Î Circle Rates
x Circle rate is the minimum designated price per sq. ft. for land or property fixed for a locality, at which transactions
have to be registered. Circle rates are also described as guideline values or ready-reckoner rates.
x They vary with each State and are revised from time to time depending on demand, supply, and development of the
area. But the rates are not revised often enough to match fluctuations in market prices. This is why circle rates can
sometimes be higher or lower than the actual market price.
x Circle rates are used both by State governments to assess stamp duty and by the Centre to assess property
transactions to income tax. It is the rules for the latter which have been changed in the budget.

Î Domestic content requirement


x The domestic content requirement (DCR) category, the mandate for solar projects in India to utilize domestically
manufactured solar modules and cells, was instituted in the Jawaharlal Nehru National Solar Mission (JNNSM) from
the beginning of 2010 in an effort to create a healthy and robust indigenous manufacturing base and to elevate
India’s status as a solar hub.
x India and the U.S. are currently engaged in a trade dispute at WTO on this issue. Recently, The United States blocked
India’s first-time request for the establishment of a panel to the settlement of a dispute that calls for allowing a
World Trade Organization (WTO) compliance panel to determine whether India has removed the mandatory
domestic content requirements and other restrictive measures imposed on imported solar cells and solar modules.
x U.S. disagrees with India’s claims of compliance and reiterated its right to use WTO procedures for retaliation while
also noting it remained open to working with India for a bilateral resolution.
x However, India has shown willingness to seek the establishment of a compliance panel again as the WTO rules don’t
allow any country to block a second request.

Î Minimum Export Price


x From time to time, the government stipulates a minimum price below which an exporter shall not sell the product to
an overseas customer. The export invoice has to be at or above the specified MEP.
x The intention is to ensure that Indian goods are not ‘thrown away’ at low prices in the international market.

Î North-East India’s first ‘Centre for Agriculture’


x Recently, Israeli Ambassador informed that a ‘Centre for Agriculture’, with the collaboration of Israeli expertise, is
going to be inaugurated in Mizoram in the month of March. This will be the first such centre in the North East region
of India.
x This centre is exclusively for the processing of citrus fruits.
x The project has been set up with the tripartite collaboration of Ministry of Agriculture and Farmers Welfare,
Government of India, Government of Israel and State Government of Mizoram.
x Israel will provide expert knowledge and professional support. Though located in Mizoram, this centre will cater to
the whole northeast.
x There are 22 such operational centres in India including in the states of Haryana, Gujarat, Madhya Pradesh,
Rajasthan and Punjab. The first centre was established in 2008 in Haryana.
x The Ministry of Development of North Eastern Region (DoNER) will coordinate all things related to ‘CENTRE FOR
AGRICULTURE’.

Î Total Expense Ratio (TER)


x Mutual funds are professionally managed investment vehicles which help investors to grow their money by investing

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Economic Development

in financial assets such as equities, bonds, gold and other assets. Mutual fund companies charge a cost to their
investors for managing their schemes. This cost is called the Total Expense Ratio.
x Mutual funds typically incur two types of expenses:
9 One, there are non-recurring expenses during the launch of a fund, which in India, are usually borne by the fund
house and not charged to investors.
9 Two, there are recurring expenses such as the management fee, distributors’ commission, registrar’s fee, trustee fee
and marketing expenses. These expenses are total up to the TER, which is expressed as a percentage of assets
managed.
x In India, the maximum TER that a fund can charge its investors is prescribed by SEBI. Equity-oriented funds are
allowed to charge a TER of 2.5 percent. The cap is set lower for debt and index funds at 2.25 percent and 1.5
percent, respectively.

FOCUS | MARCH 2018 | RAU’S IAS 48


SOCIETY AND SOCIAL JUSTICE
# GS Paper I & GS Paper III (Main)

SUPREME COURT Honour killing is a blot on the nation because many young couples
are killed when they make independent choices in marrying on their
ON HONOUR own. This is not liked by their family members and other members
of their caste, religion and gotra and they eliminate the couples
KILLING thinking that they have disobeyed, brought dishonour, and to
# Social Issue reinstate the families hollow honour.

x The court heard a petition filed by Shakti Vahini, an NGO, to make honour killing a specific crime.
x On this, the court showed concern on the freedom of adults to marry and live together without
facing harassment.
Recent
x The court stated that when two people get into wedlock, no one should interfere. Neither parents,
decision
society, khap, panchayat nor any other third party can interfere.
x Thus, CJI Bench upheld the fundamental right (Article 21) of two people who wish to marry and live
peacefully.

GRADUATES FROM The state governments are facing problems in filling up


vacancies in backward districts in 11 states where
IIT, NIT TO TEACH IN engineering students were suffering because of dearth of
teachers. The states in focus are Uttar Pradesh, Uttarakhand,
RURAL AREAS Tripura, Assam, Bihar, Jharkhand, Odisha and the Andaman
#Social Justice # Education and the Nicobar Islands.

x In a first, the government has taken decision to appoint on contract of 3 years, graduates from
Indian Institutes of Technology, Indian Institute of Science, Bengaluru, and National Institutes of
Decision Technology to fill these vacancies.
taken
x They will be provided Rs. 70,000/month as salary.
x Later, they can either choose to stay in academics or join the corporate world.

x Bring better quality education in rural districts.


Benefits x Will improve urban-rural connect by removing the difference between India vs. Bharat.
x This will help in expanding this initiative in other disciplines also.

INCREASING With a rise seen in migration of men from rural to urban areas, there
is ‘feminisation’ of agriculture sector. The number of women in
FEMINISATION IN multiple roles such as cultivators, entrepreneurs and labourers is
increasing as per Economic Survey 2017-18. The Survey also stressed
AGRICULTURE the need for an ‘inclusive transformative agricultural policy’, aimed at
# Rights gender-specific interventions.

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Society and Social Justice

FEMINISATION OF AGRICULTURE

x As per Census 2011, out of total female main workers, 55% were agricultural labourers and 24% cultivators. The
major constraint for women in agriculture is the issue of land ownership.
x Only 12.8% of the operational holdings were owned by women, which reflected the gender disparity in ownership
of landholdings in agriculture.

How to make it Women farmers should have enhanced access to resources like land, water, credit, technology
better? and training.

x Considering the labour input of women in agricultural land and also at home, justice demands that
she has ownership in the land owned by the family;
x Land ownership establishes one’s rootedness and belongingness to the community;
x Land ownership elevates woman’s status in the family;
x Land provides social security for women;
x Land is a fall back option in case of widowhood, desertion and divorce;
x Land enhances the probability of being well looked after in the old age;
x Land ownership enhances the probability of being treated with respect within the family;
x Propertied women have greater role in household decision making;
Need and
x Ownership of land decreases the chances of Domestic Violence;
benefits of
land x Ownership of land aids women in walking out of an abusive marriage;
ownership x Land ownership increases the bargaining power of women within the family;
x Ownership of land gives financial security to women- land is the least liquid asset and hence will
not be easily appropriated by others;
x Long term economic security and reduces poverty;
x Ownership of land facilitates the full utilisation of the benefits offered by certain government
schemes;
x Land is collateral for availing loans so women’s access to credit increases, when women own land.
This enables timely purchase of inputs and this in turn enhances production;
x Women negotiate better with suppliers of credit when they are the owners than when the owner is
another family member;

x Gender-based Budgeting: To ensure main-streaming of women in the agriculture sector, the


government through gender-budgeting is earmarking at least 30% of the budget allocation for
Other
women beneficiaries in all ongoing schemes-programmes and development activities.
welfare
x Access to credit: It is also focussing on women self-help groups (SHG) to connect them to micro-
steps
credit through capacity building activities and to provide information and ensuring their
representation in different decision-making bodies.

RELATED INFORMATION
Î GENDER BUDGETING (GB)
x Women, constitute 48% of India’s population, but they lag behind men on many social indicators like health,
education, economic opportunities, etc. Hence, they warrant special attention due to their vulnerability and lack of
access to resources.
x GB is a powerful tool for achieving gender mainstreaming so as to ensure that benefits of development reach
women as much as men.
x It is not an accounting exercise but an ongoing process of keeping a gender perspective in policy/ programs
formulation, its implementation and review.

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Society and Social Justice

x It entails dissection of the Government budgets to establish its gender differential impacts and to ensure that
gender commitments are translated in to budgetary commitments.
x The rationale for gender budgeting arises from recognition of the fact that national budgets impact men and
women differently through the pattern of resource allocation. The way Government budgets allocate resources,
has the potential to transform these gender inequalities.

HEALTH INDEX NITI Aayog’s latest Health Index report is an attempt to establish an
annual systematic tool to measure and understand the nation’s
REPORT # Health performance in the health sector.

About the The document was developed by NITI Aayog with technical assistance from the World Bank and in
report consultation with the Ministry of Health and Family Welfare.

x Jharkhand, Jammu and Kashmir and Uttar Pradesh showed the maximum improvement in
indicators such as Neonatal Mortality Rate, Under-five Mortality Rate, full immunisation coverage,
institutional deliveries, and People Living with HIV (PLHIV) on Anti-Retroviral Therapy (ART).
x Manipur registered maximum incremental progress in indicators such as PLHIV on ART, first
Other trimester antenatal care registration, grading quality parameters of Community Health Centres,
findings average occupancy of key state-level officers and good reporting on the Integrated Disease
Surveillance Programme (IDSP).
x Lakshadweep showed the highest improvement in indicators such as institutional deliveries, TB
treatment success rate, and transfer of National Health Mission funds from the state treasury to
implementation agency.

EKALAVYA MODEL To provide education to tribals in their local environment, every


block comprising more than 50 per cent of tribal population and
RESIDENTIAL at least 20,000 tribal people will have an 'Eklayva Model
SCHOOL Residential School by 2022. This was announced in the recent
Budget presented by the government.
# Social Justice #Education

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Society and Social Justice

The schools will be part of the Navodaya Vidyalayas and provide for special facilities for preserving
Features
local arts and culture besides providing training in sports and skill development.

x Jawahar Navodaya Vidyalayas (JNVs) are a system of alternate schools in India.


x They are run by Navodaya Vidyalaya Samiti, New Delhi, an autonomous organization under the
Department of School Education and Literacy, Ministry of Human Resource Development,
Government of India.
x JNVs are fully residential and co-educational schools affiliated to Central Board of Secondary
Navodaya
Education (CBSE), New Delhi, with classes from VI to XII standard.
Vidyalayas
x Its significance lies in the selection of talented rural children as the target group and the attempt to
provide them with quality education comparable to the best in a residential school system. Such
children are found in all sections of society, and in all areas including the most backward.
x The concept of opening a JNV in every district of India was born as a part of the National Policy on
Education, 1986 with an aim of providing excellence coupled with social justice.

Recently, the PyeongChang Olympic Winter Games at the South Korean city
of Pyeongchang, has been hit by extraordinary outbreak of Norovirus.
NOROVIRUS Norovirus infection swept through the Games Village and surrounding
# HEALTH areas, cut down people with severe attacks of diarrhoea and vomiting, and
spread panic among athletes and residents.

ABOUT NOROVIRUS

x It is similar to the diarrhoea-inducing rotavirus for which India has recently included a vaccine in its
universal immunisation programme.
What? x While rotavirus primarily affects children, Norovirus infects people across age groups.
x Disease outbreaks typically occur aboard cruise ships, in nursing homes, dormitories, and other
closed spaces (such as the Games quarters).

x Symptoms are sudden onset of vomiting and/or diarrhoea.


x Infected persons also experience nausea and abdominal pain, and may have fever, headaches and
bodyaches.
Symptoms
x In extreme cases, loss of fluids could lead to dehydration.
x The disease is self-limiting. The infection, even though it takes a lot out of the patient, normally
lasts only two or three days, and most individuals can ride it out with sufficient rest and hydration.

x Norovirus is highly contagious, and can be transmitted through contaminated food, water, and
surfaces. The primary route is oral-faecal.
Spread of x One may get infected multiple times as the virus has different strains.
infection x Norovirus is resistant to many disinfectants and heat up to 60°C. Therefore, merely steaming food
or chlorinating water does not kill the virus. The virus can also survive many common hand
sanitisers.

x The basic precaution is repeatedly washing hands with soap after using the lavatory or changing
diapers.
Prevention x It is important to wash hands scrupulously before eating or preparing food.
x During outbreaks, surfaces must disinfected with a solution of hypochlorite at 5,000 parts per
million.

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Society and Social Justice

x No vaccines are available for the disease.


x It is important to maintain hydration in the acute phase.
x In extreme cases, patients have to be administered rehydration fluids intravenously.

VIEW POINT
MEDICARE IS NOT Write up on the National Health Protection Scheme announced
in the recent budget. According to it, Insurance is fine but
HEALTHCARE # Health infrastructure is most crucial in actual delivery of health
(courtesy: The Hindu) services.

Read and ponder!

What was perhaps the biggest announcement in the Budget didn’t actually involve any money. The National Health
Protection Scheme, touted as the world’s largest healthcare programme, envisages providing medical insurance cover
of up to ₹5 lakh each to 10 crore families. Assuming an average family size of five members, this translates to 50 crore
people, or nearly 40% of the population.

This is a stupendous goal by any yardstick, and the first near-universal welfare measure in the health sector since
possibly the 1980s, when governments, constrained by tightening resources and burgeoning populations, switched
focus to targeting just the vulnerable sections of society, while leaving it to the private sector to take care of the rest.

And, as many have pointed out already, the Finance Minister did not allocate any money for this; he only promised to
raise the resources when required.

A good idea?

If the contours of similar schemes in the past are any indication, this will still amount to only around 40% of the total
required, with the balance to be funded by the States (health is a State subject, after all).

I am even willing to assume that the States too will fall in line and cough up the amount required, since aspirations
have been already unleashed on this front and it will be difficult for any political party to swim against the tide and
refuse to pay. So, assuming that the money is found and the insurance policies go live in a year or two, does this mean
that a significant chunk of the population will be able to afford quality healthcare when they need it? Given the fact that
out-of-pocket expenditure on healthcare is nearly 63% of the country’s total healthcare expenditure (one of the highest
in the world — it’s 32% in China, 11% in the U.S. and the world average is 18.2%), and “catastrophic expenditure” on
healthcare pushes millions back into poverty every year in India, an insurance scheme which provides up to a ₹5 lakh
cover sounds like a great idea.

Or is it? There is one crucial difference between Medicare assistance (even of the Obamacare variety) and actual
healthcare services. The former is a financial product which focuses on enabling beneficiaries to access existing
healthcare facilities. It does not in itself ensure the creation of healthcare infrastructure — somebody will still have to
build clinics/hospitals, staff them with doctors, nurses, medicines and equipment, and provide these at a cost which
falls within the limits of the healthcare insurance policy.

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Society and Social Justice

The real challenge

This is where India has been slipping badly. For instance, it had only about 1,800 hospitals in rural areas, according to
the government’s rural health statistics for 2017. The shortfall in percentage terms vis-à-vis the population (based on
the 2011 Census) is 19% in terms of sub-centres, 22% in terms of primary health centres and 30% in terms of
community health centres. As of March 2017, the number of buildings required to be constructed to meet
requirements had crossed 40,000.

Worse, even if the buildings exist, they are often just that — shells, without the requisite staff. According to the Niti
Aayog’s latest State-wise healthcare index, the proportion of vacant specialist positions (medicine, surgery, obstetrics
and gynaecology, paediatrics, anaesthesia, ophthalmology, radiology, pathology, ear-nose-throat, dental, psychiatry)
ranged from a low of 16.7% in Tamil Nadu (among the larger States clustering) to a staggering 77.7% in Chhattisgarh as
of 2015-16. When it came to the availability of a doctor at primary health centres, even the best-performing States like
Kerala and Tamil Nadu had 5.9% and 7.6% respectively, while over 41% of the primary health centres in West Bengal,
Chhattisgarh and Jharkhand didn’t have a doctor available; this was 63.6% in Bihar. About half the primary and
community health centres in Rajasthan, Haryana and Bihar did not even have a staff nurse; in Jharkhand it was 74.9%.

Given this dismal scenario, merely providing the amount is not enough. True, creating a potential addressable medical
services consumer base worth ₹50 lakh crore will work as a tremendous incentive to the creation of such infrastructure
in the private sector, but this will take time. Besides, the private sector will face the same challenges of getting trained
medical professionals to work in remote and rural locations. It can, of course, pay more money to such people as
incentive, but that again will push up costs.

The real challenge then remains unchanged: to create the physical healthcare infrastructure on the ground, equip it,
staff it, and run it. The last is important. About a quarter of primary health centres in the country, for instance, do not
have access to 24-hour power supply, and nearly a fifth don’t have water supply. After that comes the issue of meeting
the costs.

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SCIENCE & TECHNOLOGY
# GS Paper (Prelims) & GS Paper III (Main)

RFID FOR E- E-way bill system paves the way of further innovation and improvement in
the taxation and the logistics ecosystem (for road transportation) in India. To
WAY accomplish this, the RFID tags will be used on trucks to make inspection
seamless. Let us understand what these RFID tags are and their significance.
#Technology
E-WAY BILL & ITS SIGNIFICANCE

x The E-way bill, short form for electronic way bill, is a document to be generated online under the
GST system, when goods of the value of more than ₹50,000 are shipped inter-State or intra-State.

x The E-way bill must be raised before the goods are shipped and should include details of the goods,
their consignor, recipient and transporter.

x The transporter must carry the invoice and the copy of E-way bill as support documents for the
movement of goods.

x Though check-posts have been abolished under GST, a consignment can be intercepted at any point
What is E-
for the verification of its E-way bill, for all inter-State and intra-State movement of goods. If a
way bill?
consignment is found without an E-way bill, a penalty of ₹10,000 or tax sought to be evaded,
whichever is greater, can be levied.

x Whether goods are transported on one’s own or hired conveyance, by air, rail or road, the E-way bill
has to be generated.

x Where the goods are handed over to a transporter for conveyance by road and neither the
consignor nor the consignee has generated the E-way Bill, the transporter becomes liable to
generate it.

x It can further unify India as a market and do away with bothersome inter-State check-posts,
initiated by the GST.

x Both the GST levy and the E-way bill are expected to reduce transit delays, while at the same time
plug tax evasion.

x Every E-way bill generated by a sender or buyer of goods is to be automatically updated in the
Importance outward sales return (GSTR1) of the supplier, leaving little scope for tax evasions on shipments.

x Earlier, tax officials had to manually cross-check the way bill with the tax returns filed, to verify if all
the consignments came within the tax net.

x Moreover, a single electronic way bill for the movement of goods throughout the country is expected
to save tons of paperwork and sidestep various inter-state clearances for buyers, sellers and
transporters.

However, there are various infrastructural issues that need to be resolved, especially the cooperation of all the States.
The implementation of E-way bill which was scheduled from February 1st has been postponed considering this.

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Science & Technology

ABOUT RFID

x Radio-Frequency
Identification (RFID) is the use
of radio waves to read and
capture information stored on a
Use of radio tag attached to an object.
waves x A tag can be read from up to
several feet away and does
not need to be within direct line-
of-sight of the reader to be
tracked.

x A RFID system is made up of two parts, a tag and a reader.


x RFID tags are embedded with a transmitter and a receiver.
x The RFID component on the tags has a microchip that stores and processes information, and an
antenna to receive and transmit a signal. The tag contains the specific serial number for one
Components
specific object.
x To read the information encoded on a tag, a two-way radio transmitter-receiver emits a signal to
the tag using an antenna.
x The tag responds with the information written in microchip.

Passive RFID Tag Battery powered RFID tag


Types of RFID
tags – 2 types will use the radio wave energy to relay its stored is embedded with a small battery that
information while A battery powered powers the relay of information

x Interestingly, RFID has been already employed in the FASTag developed by NHAI.
Other uses
x FASTag is the Electronic Toll Collection on Toll Plazas on National Highways of India.

The Maharashtra government has signed an


HYPERLOOP IN MAHARASHTRA MoU with Virgin group to build the Mumbai-
#Technology #Transportation Pune hyperloop.

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Science & Technology

HYPERLOOP TECHNOLOGY & PLANS

x Hyperloop is a proposed system of transport that would see pods or containers travel at high
speeds through a tube that has been pumped into a near-vacuum.
What? x The pod lifts off the track using magnetic levitation and glides at aircraft speeds for long distances,
owing to ultra-low aerodynamic drag.
x The pods would be able to travel at very high speeds with a projected top speed of over 1100 Km/H.
x The pod would initially launch using an electric motor before levitation takes place and the pod can
glide at cruising speed in the low-pressure tube.

Planned Hyperloop has been proposed on routes in UK, Netherlands, Finland and Dubai, where it has backing
projects from the governments to explore the potential of the system.

x The proposed Hyperloop route in India will be connecting Mumbai and Pune in Maharashtra.
x The proposed system will cut travel time between Mumbai and Pune to 25 minsutes from the 3
hours it now takes by road.
x Mumbai-Pune Hyperloop is estimated to connect 26 million people, support 150 million passenger
Proposed trips per year, and reduce greenhouse gas emissions by up to 86,000 tonnes over 30 years.
Mumbai- x If completed in time, India could be the first country to have a hyperloop in the world.
Pune x A developmental track of 10 Km would be prepared by 2021.
x The system would be 100% electrified which would reduce greenhouse gas emissions and thus
save environmental costs.
x The feasibility study will be completed by August 2018 and the project works will be allocated by
the Swiss Challenge Method.

x It is new process of giving contracts for procurement.


x Any person with credentials can submit a development proposal to the government. That proposal
Swiss will be made online and a second person can give suggestions to improve and beat that proposal.
Challenge x An expert committee will accept the best proposal and the original proposer will get a chance to
Method accept it if it is an improvement on his proposal.
x In case the original proposer is not able to match the more attractive and competing counter
proposal, the project will be awarded to the counter-proposal.

x India is working on another hyperloop likely to come up between Amaravati and Vijayawada in
Other Andhra Pradesh.
hyperloops x The company Hyperloop One has also announced a proposal to evaluate construction of five lines
in India in India which include Bengaluru to Chennai, Mumbai to Chennai via Bengaluru, Bengaluru to
Thiruvananthapuram, Mumbai to Delhi and Mumbai to Kolkata.

x The system is fully autonomous minimizing human error.


x The pod motion will involve no contact making the system noiseless.
Advantages
x The capital and operational costs of Hyperloop will be two-thirds that of high-speed rail.
of Hyperloop
x Hyperloop has much less ground footprint than tradition rail or road transportation systems.
x If used with renewable energy, it can help in reduction of carbon footprint.

Recently, scientists have for the first time, directly observed


AURORA ELECTRONS electrons bouncing across Earth’s magnetic field, which cause
the colourful phenomenon commonly known as the Northern
OBSERVED #Earth Science Lights.

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Science & Technology

THINGS TO KNOW

x The Aurora Borealis (Northern Lights) and


Aurora Australis (Southern Lights) are the
result of electrons colliding with the
upper reaches of Earth’s atmosphere.
x Protons cause faint and diffuse aurora,
usually not easily visible to the human
eye.
x The electrons are energized through
Auroras
acceleration processes in the
magnetosphere. The accelerated electrons follow the magnetic field of Earth down to the Polar
Regions where they collide with oxygen and nitrogen atoms and molecules in Earth’s upper
atmosphere.
x In these collisions, the electrons transfer their energy to the atmosphere, thus, exciting the
atoms and molecules to higher energy states. When they relax back down to lower energy states,
they release their energy in the form of light.
x The aurora typically forms 80 to 500 km above Earth’s surface.

x While the cause of colourful auroras has long been hypothesized, researchers had earlier never
directly observed the underlying mechanism.
Observation x With the advent of a new satellite with advanced measuring tools, researchers successfully
identified that Aurora is caused by the hard-to-detect interaction between electrons and plasma
waves.

Daily Auroras are characterized by auroral brightening from dusk to midnight, followed by auroral arcs that
patterns eventually break up, and emerge as diffuse, pulsating auroral patches at dawn.

x The global reconfiguration in the atmosphere leads to a specific type of plasma waves called
chorus waves.
x This stabilizes and gives off a colourful light as the electrons fall.
Chorus x Scientists have for the first time observed scattering of electrons by chorus waves generating
Waves particle precipitation into the Earth’s atmosphere. Particle precipitation is the term used for
acceleration of electron in the atmosphere).
x Researchers designed a specialised electron sensor that observed the precise interactions of
auroral electrons driven by chorus waves.

Recently, the $30 Million Google Lunar XPRIZE went


GOOGLE LUNAR Xprize unclaimed as none of the finalists could prepare for the
‘moonshot’ due to difficulties of fundraising, technical and
REMAINS UNCLAIMED regulatory challenges. In this context, an Indian initiative
by TeamIndus was amongst the finalists. Let us quickly go
#Space
through the prize and India’s team.

THINGS TO KNOW

x Google Lunar XPrize is a contest to soft-land a spacecraft on the moon, and move a robotic rover
Google
for 500 metres on the lunar terrain.
Lunar
x The robot developed and designed by the participating teams would send videos and pictures from
XPrize?
there before March 31, 2018.

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Science & Technology

x As part of the rules, it was mandated that each team be at least 90% private-funded.

x In 2007, a Bengaluru based start-up


TeamIndus conceived the moon-landing
contest.
x An agreement was made between
Antrix (commercial arm of ISRO) and
TeamIndus to launch the rover to the
moon.
Effort by x Various corporate icons and individuals
TeamIndus decided to contribute to TeamIndus and
invest money.
x Several of ISRO’s retired scientist, who had led its 2008 Chandrayaan-1 and Mars orbiter missions,
became part of the venture to achieve the mission
x TeamIndus also won an encouraging prize of $1 million from google.
x In December 2016, ISRO decided to launch the robot on its PSLV.
x Over 100 young engineers for over seven years were working for this project but the project failed.

x The teams could not raise the funds they needed. Moreover, they ran into technical and regulatory
difficulties.
Failure of
x As per the spacecraft launching regime, the landing spacecraft and the rover need to be sent to the
the project
ISRO for flight qualification about 6 months before the launch date. Unfortunately, TeamIndus was
nowhere near it.

x Even the pioneers of moon landing, USA and USSR did not succeed in the first try.
x Though TeamIndus raised about $60-65 million (around Rs.400 crore), it covered only half of the cost
it needed to complete the mission.
Challenges
x Space travel costs are even higher internationally than the economical PSLV.
x Hence, the project has been called off by Lunar Xprize as none of the teams were near to the launch
of the rover to Moon.

SUPER BLUE MOON 31st January, many parts of the world, including India, got to see
a blue moon, a super moon and a total lunar eclipse.
# Space
OBSERVATIONS

x Scientists observed the event from a telescope in Hawaii, while also collecting data from NASA’s moon-circling Lunar
Reconnaissance Orbiter, launched in 2009.
x Just like the total solar eclipse which cools the Earth’s surface, a lunar eclipse cools the moon’s surface.
x It is this abrupt cooling - from the heat of direct sunlight to essentially a deep freeze - that interested the
researchers.

WHAT IS?

Blue Moon When one calendar month has two full moons; the second one is called a "blue moon."

x During the peak total phase of the lunar eclipse, the moon had a reddish or coppery touch.
Blood moon x This is because even though the moon is in the shadow of the Earth, some light does reach it. Fine
particles in the atmosphere scatter the blue component of the solar spectrum, and what reaches

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Science & Technology

us is the longer wavelength red light. Hence the moon is referred to as Blood Moon.

x ‘Supermoon’ is used to mean a full moon that is at perigee (when the moon is at its closest
position to Earth along its orbit).
Supermoon x As a result, the moon appears enlarged in comparison with the full moon at apogee (farthest
position from Earth)
x The supermoon is 14% larger than the apogee full moon and 30% brighter.

NANO-TECH TO TREAT Scientists have recently turned nano-particles of calcium


phosphate into fully biodegradable radio frequency agents
CANCER successfully allowing them to be imaged in MRI and CT
scans.
# Nanotechnology #Health
THINGS TO KNOW

x Cancer occurs when abnormal cells divide in an


uncontrolled way.
x Some cancers may eventually spread into other
tissues.
About
x There are more than 200 different types of cancer.
cancer
x Cancer starts when gene changes make one cell or a
few cells to grow and multiply too much. This may
cause a growth called a tumour.
x Most cancers start due to gene changes that happen over a person’s lifetime.

x India accounts for the third highest number of cancer cases among women after China and the US,
growing annually at 4.5-5%.
India’s
x India is witnessing further deterioration of key risk factors that contribute to cancer incidence.
burden
x While obesity is considered a major contributing factor for cancer, the proportion of overweight
women in India grew at twice the global average growth between 2004 and 2014. Similarly, alcohol

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Science & Technology

consumption per capita increased three times in India between 2000 and 2014.
x India also ranks among the top two countries globally on mortality for key women-specific cancers.
x India’s mortality to incidence ratio, a key indicator for measuring effectiveness of national cancer
control programmes, is the worst in India for key women-specific cancers globally.
x There is a need for skilling and capacity building. Promotion of investment in building cancer care
centres supported by appropriate funding through Centre and state allocation of budgets is vital.

x Currently, the most common treatments for cancer involve radiation and use of gamma rays to kill
cancer cells.
Current
x However, this inflicts collateral damage as the healthy cells also get destroyed along with cancer
treatments
cells.
for Cancer
x Another method is the use of Radiation treatment along with cyber-knife. Though this method is
much more precise than the conventional ones, it is very expensive.

RECENT EFFORT

Scientists have turned nano-particles of calcium phosphate, a bio mineral naturally found in human
The Project
bones, into fully biodegradable radio frequency (RF) agents.

Support The project has been funded by the Department of Biotechnology.

x Though the most easily available and cheapest treatment for Cancer involves the use of Radio
Need for
frequency (RF) Microwaves, the agents used need to be non-toxic to human body and
Calcium
preferentially accumulated in the tumour.
phosphate
x Calcium phosphate is naturally found in human bones and is non-toxic and fully biodegradable.

x The main advantage of calcium phosphate is that human body does not treat it as foreign
material, leading to minimum toxicity and immune rejection compared to other engineered nano
particles which are non-biodegradable.
x Further, it can be guided precisely to cancer tumours, helping the use radio waves to heat up and
Advantages
destroy the cancerous cells.
x Moreover, the nanoparticles are image traceable, which means their accumulation can be verified
and studies using MRI and CT scans. This will help the use of Image guided surgical treatments
of Cancer, helping doctors improve precision.

An accidental death occurred recently when a man walked into an MRI


with an oxygen (metal) cylinder. The machine's heavy magnetic field
MRI MACHINES got activated and pulled both the man and the cylinder with great
#Biotechnology force. Let us understand what MRI is and the significance of the
machine.

THINGS TO KNOW

x Magnetic resonance imaging (MRI) is a non-invasive medical test that doctors use to diagnose
medical conditions.
x MRI uses a powerful magnetic field, radio frequency pulses and a computer to produce detailed
MRI pictures of organs, soft tissues, bone and virtually all other internal body structures.
x MRI does not use ionizing radiation like x-rays.
x Detailed MR images allow doctors to evaluate various parts of the body and determine the
presence of certain diseases.

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Science & Technology

x The images can then be examined on a computer monitor, transmitted electronically, printed or
copied to a CD or uploaded to a digital cloud server.

x Unlike conventional x-ray examinations and


computed tomography (CT) scans, MRI does
not utilize ionizing radiation.
x Instead, radiofrequency pulses re-align
hydrogen atoms that naturally exist within the
body’s water while the patient is in the scanner
without causing any chemical changes in the
tissues.
x As the hydrogen atoms return to their usual
alignment, they emit different amounts of
Working energy that vary according to the type of body
tissue from which they come.
x The Magnetic Resonance scanner captures this
energy and creates a picture of the tissues
scanned based on this information.
x The magnetic field is produced by passing an electric current through wire coils. Other coils, located
in the machine and in some cases, placed around the part of the body being imaged, send and
receive radio waves, producing signals that are detected by the coils.
x The electric current does not come in contact with the patient.
x A computer then processes the signals and generates a series of images.

While a fridge magnet has a strength of about 0.0001 Telsa (a unit to measure) and Earth’s magnetic
How strong? field measures 0.00005 T, MRI machines have comparatively giant electromagnets with field strength
between 05.T to 1.5T.

x An MRI machine’s magnetic field is on even when it isn’t scanning. Hence no magnetic items are
allowed in the MRI room. Further, patients using pacemaker (used for healthy functioning of heart)
are also not allowed to use the MRI machine.
Precautions x A precautionary sign indicating, “Strong Magnetic Field” and “Magnet is Always On” is conventionally
used outside.
x An emergency button can be also used to demagnetise the machine. However, it may be dangerous
as the liquid helium that maintains the magnet’s temperature may vaporise, leading to an accident.

x In India, diagnostic centres doing radiation tests such as X-ray or CT scan need to have Atomic
Regulations Energy Regulatory Board (AERB) approval.
x However, MRI scans involve no radiation, and hence the guidelines do not apply.

A Recent Study by British Journal of Clinical Pharmacology:


Revealed that out of 118 different formulations of fixed dose

UNAPPROVED combinations (FDCs) being sold in India between 2007 and 2012,
over 64% were not approved by the national drugs regulator, the
ANTIBIOTICS SOLD Central Drugs Standard Control Organisation (CDSCO). Also, only
five of these formulations were approved in the UK and US.
IN INDIA
Another study by Queen Mary University of London and Newcastle
#Health University: Found that multinational companies continued to
manufacture many unapproved formulations between 2007 and
2012, despite pledging to tackle rising antimicrobial resistance.

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Science & Technology

ABOUT FIXED DOSE COMBINATION (FDC) DRUGS

Active pharmaceutical ingredient or API is any substance or mixture of substances intended to be used in
API
the manufacture of a pharmaceutical dosage form.

x An FDC is a combination of two or more APIs in a fixed ratio of doses.


x The development of FDCs is becoming increasingly important from a public health perspective.

FDCs x They are being used in the treatment of a wide range of conditions and are particularly useful in the
management of human immunodeficiency virus/acquired immunodeficiency syndrome (HIV/AIDS),
malaria and tuberculosis, which are considered to be the foremost infectious disease threats in the world
today.

Advantage Disadvantage

The combination has a greater


efficacy than any of the x Dosage alteration of one drug is not possible without alteration of the other drug.
component drug given alone x One of the drugs in the combination may be wasteful or no use to the patient.
in the same dose.

ISSUE

x Fixed Dose Combination Drugs are combination of 2 or more antibiotic drugs. If not chosen
properly, improper FDCs may instead propel Anti-Microbial Resistance.
Example: Let’s say we need a medicine for cold and drug xyz treats headache easily. Now, an MNC
Problems of
decides to develop a medicine that can treat common cold and pneumonia at the same time by
Unapproved
combining another drug abc together with xyz. As is clear, though our patient did not suffer from
FDCs
pneumonia, humans would be exposed to the antibiotics that treat it. This would enable
pneumonia bacteria to develop resistance against the abc drug in the long run faster. Here in lies
the problem of unapproved FDCs. (The example is completely hypothetical).

x The rampant sale of unapproved antibiotics in India continues, triggering antimicrobial resistance
in the country.
x India is one of the countries that has the highest antibiotic consumption rates.
Problem
x Various investigations have been held into failures of India’s drug regulatory system.
x According to the Ministry of health and family welfare, rising antimicrobial resistance is a major
challenge in India.

x Several changes are needed to achieve the World Health Organization (WHO) vision of good use of
antibiotics like banning the sale of unapproved FDC antibiotics and enforcing existing regulations
to prevent unapproved and illegal drugs reaching the market.
Way ahead x There is a need to Improve access to healthcare to reduce non-prescription sales.
x Limiting antimicrobial resistance is a strategic goal of the WHO and countries worldwide.
Regulators need to take all necessary steps to prevent the production and sale of illegal and
unapproved medicines and scrutinise the actions of multinational companies.

HUMAN EGGS Scientists at research hospitals in Edinburgh and the Centre for Human
Reproduction in New York, have for the first time grown fully developed
IN LAB human eggs. These eggs have been developed outside the human body
from their earliest stage to full maturity.
#Biotechnology

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Science & Technology

IN BRIEF

x The new technique can help widen the scope of available fertility treatments.
x It can help in developing regenerative medicine therapies and new infertility treatments.
Advantages x It can help cancer patients wishing to preserve their fertility while undergoing chemotherapy
treatment.
x Further, it would deepen scientific understanding of the biology of the earliest stages of human life.

Using this technique in previous studies, scientists had developed mouse eggs in laboratory to stage
Precedent where they produced live offspring, and also matured human eggs from a relatively late stage of
development.

The technology remains at early stage, and much more work is needed to make sure that it is safe and
Way ahead optimised before these eggs remain normal during process, and can be fertilised to form embryos that
could lead to birth of healthy babies.

Economic Survey
Input on S & T

TRANSFORMATION OF For the first time this year, the Economic Survey 2017-
SCIENCE AND TECHNOLOGY 18 has a dedicated chapter on Science and
Technology. Here are the key points from the survey.
#Economic Survey

x There is a need to encourage young people to adopt scientific enterprises to lay the knowledge
Importance
foundation which in turn would help solve India’s developmental needs.
of
x Investing in Science is fundamental to India’s needs like human security, resilience to climate
investment
change and addressing national security threats arising from fast developing technologies like
in S&T
cyber warfare and autonomous military systems.

CURRENT SCENARIO

x GERD or Gross Expenditure on Research and Development is among the most important of
indicators to measure investment in Science.

x Though GERD has been increasing in absolute terms it is almost constant as a fraction of India’s
GERD GDP.

x India has on an average spent just 0.6-0.7 % of its GDP as GERD.

x This is in comparison to Korea at 4.2%, Israel at 4.3%, China at 2.1% and USA with 2.8 % of its GDP
as GERD.

x The share of Public investment as a part of India’s GERD is reducing, however still the majority
Public Sector comes from the Public sector in India of which, about 75% goes to key government science
Dominance projects like Space research, atomic energy and biotechnology.

x This is contrary to the trends followed in other countries where bulk of the expenditure in GERD

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Science & Technology

comes from the Private Sector.

x Further, most of the investments by the government is used by itself as it is the major user of the
technologies.

x India has just 26 companies in the top 2500 global R&D companies and none in top 10.

Role of x Indian universities largely focus on teaching rather than creating a talent pool for research.
Universities x There is a need for Universities to play a much larger role in Indian research.

x STEM is the
abbreviation
of Science,
Technology,
Engineering
and Math.

PhDs in x Though there


STEM has been an
increase in the
number of
enrolments in
PhDs, this has
been mainly because of increased Government’s efforts like Prime Minister Research Fellowship.

x India has very few number of PhDs when compared to other countries like USA and China.

x Publications of research papers in journals indicates a nations progress in Research.

Scientific x In 2013, India was ranked 3rd in World for scientific publications.
Publications x India had shown a gradual progress when it comes to publications

x Further, the quality of India’s publications is increasing as well, though slowly.

x As per the World Intellectual Property Organization (WIPO), India is the 7th largest patent filing
office in the world.

x India produces fewer patents per capita then countries like USA, Japan, China and Germany.

x Among the patents granted, the resident patents are far less than the non-resident patents. This
Patents
may be because of a stronger examination process since India joined the international patent
regime since 2005.

x Another reason for the low number of patents is attributed to the backlog due to severe shortage
of manpower. For this, the government has recently recruited over 450 patent examiners in 2017.

SUGGESTIONS BY ECONOMIC SURVEY

Increase
India need to increase investment in R&D focusing on the private sector and universities.
Investment

x India needs to focus on school education to improve Maths and Cognitive Skills at the early stage.
Cognitive
x Focusing on learning outcomes and targeting access to primary and secondary education is
skills
necessary

Investigator x India needs to gradually move to have a greater share of an investigator-driven model for funding
Model science research

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Science & Technology

x A step in this direction was taken in 2008, with the establishment of the Science and Engineering
Research Board (SERB), a statutory body of Department of Science and Technology.
x SERB has already sanctioned about three and half thousand new R&D projects to individual
scientists.

x The private sector need to be incentivized to both undertake more R&D but to also support STEM
research through Corporate Social Responsibility funds.
x Government may also work with the private sector to create new R&D funding opportunities like
Private Sector
the 50:50 partnerships with SERB under the Ucchatar Avishkar Yojana (UAY).
and State
x State governments need to recognize the need to invest in application oriented research aimed at
Governments
specific problems.
x This would both strengthen state universities as well as provide much needed knowledge in areas
such as crops, ecology and species specific to a state.

x Universities need additional faculty support, while research institutes need bright young
students. A closer relationship between the two would help research in areas reflecting the fields
National Labs
of science in which the national research centers have strengths.
(create
x Linking National Labs to universities can help create knowledge eco-systems as they can link up
symbiosis)
with the commercial sectors and help develop industrial clusters in those areas that draw on
these research strengths and lay the foundations of smart cities.

x With more than 100,000 people with PhDs born in India and the strength of India’s economy and
growing anti-immigrant atmosphere in some Western countries, India has an opportunity to
attract back scientists.
x There has been an increase in the number of Indian scientists returning to work in India during
Scientific the last five years.
Diaspora x Various government programmes like Ramanujan Fellowship Scheme, The Innovation in Science
Pursuit for Inspired Research (INSPIRE) Faculty Scheme and The Ramalinga Swami Re-entry
Fellowship (which provides avenues to Indian researchers residing in foreign countries, to work in
Indian institutes), and Visiting Advanced Joint Research Faculty Scheme (VAJRA) may be enhanced
to take advantage of opportunities to recruit in a way to build whole research groups.

x Indian research institutes need to deviate from the hierarchical governance systems and
Culture of encourage risk-taking and curiosity in the pursuit of excellence.
Research x It is necessary that greater number of younger scientists take part in decision making in their
areas of expertise.

Public
x Scientists need to create greater public support for their work.
Engagement

Mission Mode: There are many potential missions that India can undertake to excel in R&D. Some of these are:
x India needs at least one mission that is directed towards the basic sciences.
National x India is one of the leading countries in high energy physics and relevant mathematics.
Mission on x This mission can build on the strong foundation of astronomy and astrophysics
Dark Matter research institutes in the country.
x Research in this area has some of the strongest international collaborative possibilities including
India’s ongoing participation in the LIGO and other projects.
National
x Genomic research lies at the heart of the future of the life sciences.
Mission on
x Currently several countries have launched ambitious national genomic research projects.
Genomics
x India already has a strong foundation of life science research institutes which can make

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Science & Technology

significant contributions in this area.

x Renewable energy is the future and India has made a major commitment to investment in
National renewable energy.
Mission on x Energy storage technologies like batteries help in energy management and power quality in
Energy Storage electric power systems.
Systems x India has lagged in manufacturing renewal energy generation systems.
x Substantial investments in energy storage systems will ensure that India can be a leader in
manufacturing energy storage systems.

x Mathematics has two advantages for India. First being it is not capital intensive and the other is
that the standards of excellence are universal.
National
x A National Mission of Mathematics will improve mathematics teaching at all levels of higher
Mission on
education.
Mathematics
x Establishing five institutes of mathematical sciences within existing institutions, conducting
annual math Olympiad competitions with scholarships for all winners will help in the overall goal
of rapidly increasing India’s human capital and research profile in mathematics within a decade.

National x This is an area that uses deep mathematics in Artificial Intelligence, Machine Learning, Big data
Mission on Analytics, Block Chains and Expert Systems.
Cyber Physical x Contextual Learning will promote integration of all intelligent materials and machines, control
Systems systems, sensors and actuators, robotics and smart manufacturing.

x Improving Indian agricultural productivity, creating resilience to the challenges in terms of rising
National temperatures, variable rainfall, water scarcity, increase in pests and crop diseases requires a
Mission on major thrust in agricultural science and technology.
Agriculture x A national mission would help overcome the weaknesses in existing agricultural research and
technology.

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GEOGRAPHY, ENVIRONMENT, BIODIVERSITY &
DISASTER MANAGEMENT
# GS Paper (Prelims) and GS Paper I & III (Main)

FAUNA

TIGER DIPLOMACY In a first, Bhutan, Nepal and Bangladesh will coordinate with India
#Conservation in estimating the territorial spread of the tigers in the
subcontinent under the India’s tiger census which began in 2017.
#Neighbourhood relations
THINGS TO UNDERSTAND

x Tiger has been specified as endangered species by the IUCN (International Union for
Conservation of Nature) Red List of Threatened Species.
Status of Tiger x They face threats from poaching, illegal trade and habitat loss.
x In 2006, India had only 1,441 tigers, this number has increased to 2,226 in 2014 (i.e. about 60%
of the world wildlife tiger population)

x The Wildlife Institute of India (WII), a Union Environment Ministry-funded body, has been
tasked with coordinating the tiger estimation exercise.
x The National Tiger Conservation Authority will be conducting the survey.
x Method: The assessment will be based on an Android phone based application- M-STrIPES. It
stands for Monitoring system for tigers-intensive protection and ecological status. It
Tiger
automatically records data on animal sightings with geotagged photographs.
estimation
x Period of survey: It is conducted once in every four years. Findings of the survey will be
revealed in 2019.
x Apart from tiger estimation the survey also collects information about the prey population of
deer and other animals.
x A new area that would be covered would be Northeast.

x The Indian sub-continent is home to about 80-90% of world’s tiger population.


x The increase in tiger population demonstrates the success of conservation measures.
Importance x Joint census will lead to greater verified number, greater coordination and conservation
efforts.
x Significance at international level.

Strengthening x The Project Tiger was started in 1973.


India’s tiger x After that, India is a leader in the tiger conservation efforts among the tiger range countries.
diplomacy x Various nations like Cambodia are working with India on tiger conservation.

Way forward x Target the conservational efforts to the low tiger population areas.

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Geography, Environment, Biodiversity & Disaster
Management

x Information sharing with countries will boast the efforts.


x Generate more conservation awareness.
x Maintaining the genetic diversity across borders.
x Ensures sufficient prey population

IUCN RED LIST

Sea waves and winds have widened a portion of the beach


NATURE HELPING near the famous Rushikulya rookery on Odisha coast. This is
OLIVE RIDLEY TURTLES boosting the prospects of increased mass nesting of the
endangered Olive Ridley turtles this year. The Rushikulya
#Conservation beach is located on Chilika in the Ganjam district of Orissa.

THINGS TO UNDERSTAND

x The Olive Ridley turtles are the smallest and most abundant of all sea turtles found in the world,
inhabiting warm waters of the Pacific, Atlantic and Indian oceans.
x Name derived from its “olive colored carapace”
Olive
x Behavior: They are best known for their behavior of synchronized nesting in mass numbers, termed
ridley
Arribadas.
x Their numbers have been declining over the past few years, and the species is recognized as
Vulnerable by the IUCN Red list.

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Geography, Environment, Biodiversity & Disaster
Management

x Eating habits: Predominantly carnivorous. Mainly on jellyfish, shrimp, snails, crabs, molluscs and a
variety of fish and their eggs.
x These turtles spend their entire lives in the ocean, and migrate thousands of kilometers between
feeding and mating grounds in the course of a year.

x Widened height of the Rushikulya beach will protect several


nest and eggs of olive ridleys turtle from high tides.
x According to forest officials, the number of turtles coming out
to the coast to lay eggs during the pre-mass nesting period has
Favorable increased.
conditions x Eggs from sporadic nesting sites are being brought to
and temporary hatcheries of the Forest Department for monitored
protection hatchings.
x The gestation period is of 45 days.
x Patrolling in the sea is done to check entry of fishing trawlers to
the olive ridley congregation zone where mechanized fishing is
banned.

Note: Olive riddle turtles have been covered in detail in the December 2017 issue of FOCUS

Flora

According to the India State of Forest Report (SFR)


MARGINAL EXPANSION OF 2017, Sunderbans in West Bengal, that comprises of
almost 43% of total mangrove cover, has shown only
SUNDARBANS MANGROVES a marginal rise. The maximum increase of mangrove
cover is reported from the three States:
#Conservation
Maharashtra, Andhra Pradesh and Gujarat.

THINGS TO UNDERSTAND

x It is a vast forest in the coastal region of the Bay of Bengal and IS considered as one of the
natural wonders of the world.
x It is situated on the border of India (40% in India) and remaining 60% in Bangladesh, where the
Sundarbans
Ganges, Brahmaputra, and Mehgna rivers converge in the Bengal basin.
x Fauna-Estuarine crocodile, Royal Bengal Tiger, Water monitor lizard, Gangetic dolphin, Olive
Ridley turtle.

x Grow mostly in inter-tidal spaces.


x Classified as plants having salt tolerance mechanisms like-
9 Salt glands
Flora- 9 Aerial roots in the form of pneumatophores (an aerial root specialized for gaseous exchange).
Mangroves x Prominent mangrove species-
1. Sundari trees-. Classified as Endangered in the IUCN Red list.
2. Sonneratia griffithii, one of the tallest trees referred to as Keora by locals is critically endangered
3. Ceriops decandra (Goran)-near threatened

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Geography, Environment, Biodiversity & Disaster
Management

4. C. decandra and Avicennia (locally known as Bain)


5. Xylocarpus granatum- has a traditional medicinal use in treatment of cholera, diarrhea and
fever is also threatened due to illegal felling.
6. Excoecaria agallocha, commonly called Goria-they are back mangroves, not found in inter-tidal
areas colonized by true mangroves.
7. Sesuvium portulacastrum-found in salt marshes it has thick fleshy leaves with succulent
reddish-green stem.
8. Acrostichum aureum-found in salt marshes

x No significant improvement despite sustained efforts such as:- large scale planting of mangroves
by state forest
departments.
x Human wildlife
conflict –proximity of
fauna to the
population. Human
population are in
danger of snake bites
to tiger attacks.
x Unsustainable
exploitation of forest
Causes of
resources.
concern
Report
x Major threats
according to the ‘State
of Art Report on
Biodiversity in Indian Sundarbans’ –published by World wildlife fund for nature are-
9 Climate change such as floods, cyclones, sea level rise, and coastal erosion.
9 Habitat destruction due to industrial pollution and human disturbances.
9 Fuel wood collection
9 No orchid species can be found today
9 Clearing forest for fisheries
x According to the report, Sundarbans could disappear as sea level rises.

x Involvement of local population in conservation.

Prominent x Monitor illegal trade in mangrove species.


Conservation x New Mangrove area must be created through intensive afforestation programme.
efforts x Promoting climate resilient sustainable livelihood.
x Research and monitoring.

EVOLUTIONARY Trees are the life-givers of the planet and in this parameter wide
expanses of tropical forests play an important role. Taking this into
HISTORY OF consideration, an international team of researchers, including
Indians, have conducted a study to map the evolutionary history of
TROPICAL FOREST tropical forest. The study was published in the ‘International Journal
#Conservation Proceedings of the National Academy of Sciences’.

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Geography, Environment, Biodiversity & Disaster
Management

THINGS TO UNDERSTAND

Rationale of The tropical forest may be wide apart in different continents but they are related and share a
study common ancestry.

x To develop a new classification system for plant communities that would help to predict their
resilience and susceptibility to global environmental changes.
Aim of the
x For this, team of scientists built a family tree to see how these trees are related to each other
study
through millions of years of evolution.

x This research would help in conservational efforts at global level.

FOCUS AREAS

x Five major forest


regions in tropics were
identified for study: The
Indo-Pacific, Subtropical,
African, American and
Dry forests.
x The Tropical forests in
Africa and South
America are closely
related with most of the
differences between
them occurring within
the last 100 million
years. This was result of
plate tectonics related
split.
x Dry forests found in
India, America, Africa and Madagascar are also closely related to each other.
x India plays a central role in this as many of the plant species in the Asian tropics reached Asia via India about 45
million years ago.

The India State of Forest Report 2017, released by the Forest Survey of
MARGINAL India shows a marginal rise in the forest cover by 0.21% in between 2015
and 2017. This becomes extremely important as forests play a vital role in
INCREASE IN water conservation and improve the water regime in the area. The Forest
FOREST COVER survey of India conducts the audit of country’s forest wealth every two
years. The India State of Forest Report 2017 is 15th such report in the
#Conservation series.

x The Report is based on the satellite data from Indian Remote Sensing satellite data (Resourcesat-II).
x India is ranked 10th in the world, with 24.4% of land area under forest and tree cover, even though it accounts for
2.4 % of the world surface area.

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Geography, Environment, Biodiversity & Disaster
Management

TABLE

THINGS TO UNDERSTAND

x Serve as an important tool to monitor the country’s forest resources.


Importance of x Help plan suitable scientific and policy interventions.
the report x Source of information for the policy makers, planners, and State Forest Departments
x Instrumental in identifying degraded forest and issues related to agro-forestry.

x India’s forest cover has registered a marginal increase of about one per cent between 2015 and
2017.
x This comes to an increase of 8,021 sq km (about 80.20 million hectare) in the total forest and 2%
rise in total tree cover of the country.
x Much of the increase in the forest cover has been observed in Very Dense Forest (VDF). VDF
absorbs maximum carbon dioxide.
Key findings
x All the mangrove states have shown a positive change in the mangrove cover.
x Increase in the Bamboo-bearing area in the country also reported in comparison to the last
assessment.
x The report for the first time contains information on decadal change in water bodies in forest
during 2005-2015 and this shows increase.
x Maharashtra, Gujarat, Madhya Pradesh are top three states showing increase in water bodies

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Geography, Environment, Biodiversity & Disaster
Management

within forest areas.

x Madhya Pradesh has the largest forest cover of 77,414 sq km in the country in terms of area,
followed by Arunachal Pradesh and Chhattisgarh.
x Andhra Pradesh (2141 sq km), followed by Karnataka and Kerala have shown the maximum
increase in forest cover.
Overall status
x In terms of percentage of forest cover with respect to the total geographical area- Lakshadweep
with (90.33 per cent) has the highest forest cover
x Mizoram, Lakshadweep, Andaman & Nicobar Islands, Arunachal Pradesh, Nagaland, Meghalaya
and Manipur have more than 75 per cent forest cover.

x Shifting cultivation
x Diversion of forest lands for developmental activities
x Submergence of forest cover
Main areas of x Agriculture expansion
concern x Natural disasters
x The north-eastern region has lost considerable forest cover since 2011. Northeast represents a
global biodiversity hotspot. So, any gains achieved in other areas cannot compensate for the loss
in this biodiversity crucial area.

x Methodological problems
9 Satellite images do not differentiate between natural forests, plantations, thickets of weeds such
Shortcomings as juliflora and lantana, and longstanding commercial crops.
9 The increase in the forest cover may be attributed the expansion in the survey area from the
earlier assessment.

KEY INITIATIVES TAKEN BY GOVERNMENT

x Green India Mission x Green Highways (Plantations & Maintenance) Policy to


x National Agro-Forestry policy (NAP) develop 1,40,000 km long tree line with plantation along
with both sides of national highways.
x REDD plus policy
x Improves conservational and protection activities.
x Joint Forest Management (JFM)
x Awareness programs
x National Afforestation Programme
x Compensatory afforestation by states

RELATED INFORMATION

Î FOREST SURVEY OF INDIA (FSI)


x It is a premier national organization under the union Ministry of Environment and Forests.
x Responsible for assessment and monitoring of the forest resources of the country regularly.
x Established in 1981. Headquartered at Dehradun.
x Forest Survey of India (FSI) has been assessing the forest and tree resources of our country on a biennial basis since
1987.
x Main objectives are: -
9 To function as a nodal agency for collection, compilation, storage and dissemination of spatial database on forest
resources.
9 Maintain information about forest and non-forest areas and develop database on forest tree resources.

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Geography, Environment, Biodiversity & Disaster
Management

The Government of India signed a loan agreement with NDB (New


WATER Development Bank) amounting USD 100 Million, to benefit the desert
CONSERVATION areas in Rajasthan through restructuring of Indira Gandhi Canal and
formulation of flood management systems for the Ravi, Beas, Sutlej and
#Conservation Ghaggar rivers.

ABOUT THE AGREEMENT

x Project would facilitate usage of rainwater and floodwaters of the four rivers coming from Punjab
x It will stop the flow of excess water towards India-Pakistan border.
Mandate x The project implementation period is 6 years.
x The Government of Rajasthan will implement the project primarily through Rajasthan Water
Resources Department.

Objectives

x To rehabilitate the 678-km long Indira Gandhi Canal system


built during 1958-63.
x The canal begins at the Harike Barrage at the confluence of
the Sutlej and Beas rivers in the Indian Punjab and
continues in a southwesterly direction.
x Enhance water use efficiency.
x Prevent seepage and conserve water.
x Rehabilitation of waterlogged areas.
x Strengthening of drinking water supply and irrigation
facilities in the project area.
x The restructuring and repairing of Indira Gandhi Canal and
its distributaries will help solve the problems of loss of
water and water-locking in the agricultural fields.
x It will also ensure supply of water for irrigation to the
farmers at ends of the canal.
x The project will benefit 10 districts in Rajasthan.

A dam called Tuidimjang, on the Twigem river flowing


TROUBLE BREWING OVER into Myanmar from Manipur being constructed by
MYANMAR’S DAM Myanmar close to the boundary with India, has stoked
fears of submergence and water scarcity among border
#Conservation #Bilateral relations villagers.

x Dam being built by Myanmar authorities is barely 100 metres from the Zero Line separating
the two countries.
x International rules warrant border countries to check activities in No Man’s Land – a 150-metre
Concerns
strip on either side of the boundary line.
x The topography of the area is such that the villages will be submerged if a dam comes up in the
region.

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Geography, Environment, Biodiversity & Disaster
Management

x Villagers along the border also face water scarcity.


x Large scale submergence and ecological disturbances are the main concerns.

x Mapithel dam- Began in 1989 amid protest from villagers downstream

but the government failed to provide proper rehabilitation.

x The Khuga dam south of Manipur’s has hit turbulence too.


Manipur’s
resistance to x Tipaimukh, the mega hydroelectric project proposed on river Barak in
dams Manipur did not progress as Bangladesh is against the project.

x Barak flows into Bangladesh from Manipur through southern Assam and

feeds the Surma and Kushiara rivers in Bangladesh.

Pollution

DUST MITIGATION PLAN The Ministry of Environment, Forests and Climate Change
has made it mandatory for companies seeking
MUST FOR FIRMS environment clearance to ensure that they put in place a
dust mitigation plan.
#Air Pollution

THINGS TO UNDERSTAND

What is Dust is a generic term for a vast mix of metals and non-metals — silicon, aluminum, titanium,
Dust? manganese, copper, barium, antimony, selenium and zinc.

According to a study by the Indian Institute of Technology, Kanpur: Road dust, burning of biomass
Road dust and municipal solid waste, constituted the lion’s share of the city’s air pollution.
Road dust contributed 56% of all PM10 pollution and 38% for PM2.5.

The standards were developed by the Central Pollution Control Board as part of the National Ambient
Air Quality Standards (NAAQS). The guidelines are:
9 Roads leading to or at construction sites must be paved and black-topped.
Dust
mitigation 9 There could be no soil excavation without adequate dust mitigation measures in place.
plan 9 No loose soil, sand, construction waste could be left uncovered.
Guidelines 9 Mandatory water sprinkling system.
9 Grinding and cutting of building materials in open area were prohibited.
9 No uncovered vehicles carrying construction material and waste would be permitted.

RELATED INFORMATION

x It is a statutory organization, constituted in September, 1974 under the Water (Prevention and
Control of Pollution) Act, 1974
CPCB x Entrusted with the powers and functions under the Air (Prevention and Control of Pollution)
Act, 1981.
x Main functions-

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Geography, Environment, Biodiversity & Disaster
Management

9 To promote cleanliness of streams and wells in different areas of the States


9 To advise the Central Government on any matter concerning the improvement of the quality the
air
9 To provide technical assistance and guidance to the State Pollution Control Board.
9 To collect, compile and publish technical and statistical data related to air pollution.

x Are standards for ambient air quality set by Central Pollution Control Board (CPCB), applicable
National nation wide
Ambient Air
x The CPCB has been conferred this power by the Air (Prevention and Control of Pollution) Act, 1981.
Quality
Standards x Further, a new National Air Quality Index (AQI) has been launched in October 2014 to disseminate
(NAAQS) information on air quality in an easily understandable form for the general public.
x The measurement of air quality is based on eight pollutants, namely, PM10, PM2.5, NO2, SO2, CO,
O3, NH3, and Pb.

Every year in the month of November, Northern India is


choked with smog due to burning of farm stubbles by the
STRAW MANAGEMENT farmers in Punjab, Haryana and Western U.P. thus even
choking national capital, Delhi and even there are
NOW MANDATORY IN complaints from the neighbour Pakistan. As a result of this,

PUNJAB #Air Pollution the Punjab government has made it mandatory to use
Super Straw Management System while using the combine
harvester machines for harvesting paddy (rice) crop.

THINGS TO KNOW

x Government has instructed that no harvester combine shall be allowed to harvest paddy in
Recent order Punjab without functional super straw management system.
x Aim is to protect the environment from the rising air pollution from stubble burning.

x In this, an additional equipment is attached with the combine harvester so that it cuts
standing stubble into small pieces and spreads it into the soil.
Super straw
x The straw which is left back can be ploughed back.
management
x The farmer can also sow the wheat directly using the ‘Happy Seeder’
system.
x Benefits: Such straw works as a mulch, which helps improve the wheat stand and also
conserve moisture.
x In this case crop harvesting and straw management are done at the same time.

x Increase burden of fuel consumption on farmers


Drawbacks
x Implementations issues

The corals known as the ‘tropical rain forest’ of the


CORAL REEFS RISK OF oceans, are suffering from a wide variety of
DISSOLVING DUE TO ACIDIC problems. According to scientists, Coral reefs could
start to dissolve before 2100 as man-made climate
OCEANS #Water Pollution change drives acidification of the oceans.

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Geography, Environment, Biodiversity & Disaster
Management

x Acidification will threaten sediments that are building blocks for reefs.
x Carbon dioxide, the main man-made greenhouse gas, forms a weak acid in water and threatens
to dissolve the reef sediments. This will result due to net dissolving.
Recent
x Net dissolving means that reefs would lose more material than they gain from the growth of
concerns
corals.
x Acidification will also threaten creatures such as oysters, lobsters and crabs.
x Approximately one-quarter of our carbon dioxide (CO2) emissions are absorbed by the oceans.

Î WHAT IS OCEAN ACIDIFICATION


x It occurs when carbon dioxide (CO2) is absorbed by seawater.
x A chemical reaction occur that reduce seawater pH, carbonate ion concentration, and saturation states of
biologically important calcium carbonate minerals.
x Photosynthetic algae and seagrasses may benefit from higher CO2 conditions in the ocean
x Carbonate minerals are the building blocks for the skeletons and shells of many marine organisms.
x It reduces the ability of reef-building corals to produce their skeletons.
x The entire food web is also at risk.
x Deep cuts in greenhouse gas emissions can limit acidification.

x In 2016, the international community signed the ground-breaking “Paris Agreement” to take
aggressive steps to reduce emissions of greenhouse gases. This will drastically help oceans to
recover from increased carbon content.
Way forward
x Investment in renewable energy.
x Generate awareness
x Steps to reduce carbon dioxide emission will supplement ocean sustainability.

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Geography, Environment, Biodiversity & Disaster
Management

In-shorts

Three new species of eel have been discovered along the northern
NEW EEL SPECIES Bay of Bengal coast. The finding was published in the journal,
#Conservation #Discovery Zootaxa.

1. Gymnothorax pseudotile (Dark brown with white dots). It is about 1-1.5 feet long.
Species 2. Gymnothorax visakhaensis (uniformly brown). It is about a foot long.
discovered 3. Enchelycore propinqua (reddish brown body with irregular creamy white spots). It is the smallest of
all measuring less than a foot.

Previous In 2015, a short brown un-patterned moray eel, named Gymnothorax mishrai (Bengal moray eel), was
discovery discovered from the coast of Bay of Bengal.

DISCOVERY OF TELUGU SPEAKING TRIBE


#Conservation

In a surprise discovery, a Telugu speaking tribe has been discovered in Sri Lanka. The name of the tribe is Ahikuntaka
(Telugu tribe). It is living on the island for many centuries but its population was on the decline.
x Available information suggests that the members were snake-charmers, and faced untouchability
x They have lived as nomads, with their own institutions for dispute resolution.

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C3

C3

BATCHES DELHI BENGALURU JAIPUR

Regular Batch (9 Months) 16.03.2018 23.02.2018 22.06.2018

Weekend Batch (Approx. 14 months) 17.03.2018 24.02.2018 16.06.2018


History, HERITAGE & Culture
# GS Paper (Prelims) & GS Paper I (Main)

HOWRAH BRIDGE The iconic structure of the Howrah Bridge completed 75 years of its
existence in February 2018.
# Modern India
ABOUT THE HOWRAH BRIDGE

Connection
x The Howrah Bridge is one of the most recognised landmarks in Kolkata.
between
x It connects Kolkata with its neighbouring industrial city of Howrah over the Hooghly river.
two cities

x The Pontoon Bridge predated Howrah Bridge.


x The Pontoon Bridge was constructed by Sir Bradford Leslie in 1874, after the Government of Bengal
The Pontoon
passed the Howrah Bridge Act in 1871.
Bridge
x The Pontoon Bridge had to be opened to allow vessels to pass and the Port Commissioners were
also appointed Bridge Commissioners.

Contract to build the The contract to build the Howrah bridge was awarded to a company called the Braithwaite
bridge Burn and Jessop Construction Company.

x The bridge officially opened in 1943 when it was the world’s third longest cantilever bridge.
Openings
x Today, it is the sixth longest bridge of its type in the world.

IMPORTANT FACTS

x The gigantic bridge spread across the width of River Hooghly does not have a single nut and screw
A bridge joining the array of metallic structures.
without nuts x Instead, the unique bridge was built by riveting the whole structure.
and bolts x It means a metal piece (rivet) is used to connect two or more plates inserted through the hole in
plates and pressed on the other side.

Type x It’s a suspended-type balanced cantilever bridge.

Stalled by x The bridge has a sad association with World War I (1914-1919).
First World x Even though the proposal to replace the old pontoon bridge had begun in the early 1900s, it was
War delayed owing to the catastrophic war.

x This bridge was completed in 1942 and opened to the public in 1943.
No formal x But it was not highlighted due to a fear of attacks by Japanese planes fighting the Allied Powers.
inauguration Japan had already attacked Pearl Harbour in 1941 and that instilled fear among the Britishers that
this could prove to be a target as well.

Trams used x The first vehicle to use the bridge was a solitary tram.
the bridge x The tram services on the bridge were discontinued in 1993 owing to rise in vehicular traffic.

Cultural The bridge has been shown in numerous films, such as Bimal Roy's film Do Bigha Zamin, Ritwik
significance Ghatak's Bari Theke Paliye , Satyajit Ray's Parash Pathar.

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History, Heritage & Culture

Hominins (the group consisting of modern humans, extinct human species and
STONE all our immediate ancestors) may have developed a Middle Palaeolithic culture

TOOLS AND phase around 3,85,000 years ago and continuing up to around 1,72,000 years
ago in India.
HISTORY But according to earlier evidence, the Middle Palaeolithic culture in India was
dated around 1,25,000 years ago.
OF HUMAN
This difference now has been revealed by a recent research. This research is
EVOLUTION based on the study of over seventy-two thousand stone artefacts collected
from the archaeological site at Attirampakkam (Tamil Nadu). This site is located
#Ancient India
in the Kortallayar river basin, near Chennai.

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History, Heritage & Culture

THINGS TO KNOW

x The Middle Palaeolithic is an important cultural phase.


x It is associated, globally, with both modern humans and Neanderthals (Neanderthals are our
closest extinct human relatives) or other archaic hominins, with complex histories of interaction,
Palaeolithic cultural transitions and change and dispersals.
phase and x Based on stone tool and fossil studies, the Middle Palaeolithic culture is associated with modern
its spread humans in Africa.
x The Middle Palaeolithic culture is called the Middle Stone Age in Africa.
x In Israel, it is associated with both modern humans and Neanderthals.
x In Europe, the Middle Palaeolithic culture is associated only with Neanderthals.

PRE-CHRISTIAN ERA The Archaeological Survey of India (ASI) has recently


discovered pottery pieces, and tools made of stones and
ARTEFACTS EXCAVATED bones in Odisha. It is believed to be of the pre-Christian era

IN ODISHA #Ancient India from a mound in Jalalpur village of Cuttack district, Odisha.

ABOUT THE FINDINGS

x These discoveries indicated that a rural settlement might have thrived in that period (pre-Christian
Rural
era).
settlement
x There was continuity in the progress of rural culture from a pre-historic era.

x The excavation has unearthed remnants of axe, adze, celts and thumbnail scrappers chiseled from
stones, harpoons, point and stylus made of bones and potteries with marks of paintings.
Equipments
x There are circular wattle and daub structures, which were predominantly used as shelter by people
during the pre-Christian era.

x The people here could not have lived in isolation.


x They could have had cultural and trade ties with other settlements in the Prachi Valley.
x Prachi Valley had come up around the Prachi river which originates from Bhubaneswar.
Cultural and x Prachi river is a tributary of the Mahanadi and flows through the districts of Puri, Khurda,
trade link Cuttack and Jagatsinghpur, and the entire region of the river is termed as the Prachi Valley.
x It falls into the Bay of Bengal.
x Further, Archaeological evidence shows the Prachi Valley Civilisation predates both Harappa and
Mohenjo-Daro.

x Rich materials found from excavation sites indicate that the people had a subsistence economy
Subsistence and they largely relied on agriculture, fishing and hunting.
economy x The bones found on the site belonged to deer species and bovidae.
x Discovery of tortoise shell, dolphin and shark teeth and fish bones indicated that the settlement
could have been closer to the sea coast. Some rice grains have also been detected.

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History, Heritage & Culture

SHRAVANABELAGOLA President Ram Nath Kovind inaugurated the grand anointing


CEREMONY ceremony — Mahamastakabhisheka — held once in 12 years
at Shravanabelagola (Karnataka).
#Culture
ABOUT SHRAVANABELAGOLA

The famous The Mahamastakabhisheka festival is held once in 12 years, when the Gommateshwara statue is
festival anointed with milk, saffron, ghee, etc.

x Shravanabelagola is a Jain pilgrimage centre located near Channarayapatna of Hassan district in


Karnataka.
Location
x Shravanabelagola has two hills, Chandragiri and Vindyagiri.
x Gommateshwara Statue is located on the Vindyagiri Hill.

Inscriptions’ More than 800 inscriptions have been found at Shravanabelagola, dating to various times from 600
period A.D. to 1830 A.D.

x The statue of Gommateshwara is dedicated to the Jain God Bahubali.


Dedication x It is a monolithic statue.
x It was built around 983 A.D.

Seven
x In 2007, the statue was voted as the first of Seven wonders of India.
wonders of
x It is one of the largest free-standing statues in the world.
India

Note: Shravanabelagola is the place where Chandragupta Maurya, the founder of the Mauryan dynasty, became a
Jain ascetic after relinquishing his throne. The place where Chandragupta breathed his last is named Chandragiri.

TELANGANA’S SAMMAKKA- Recently, Asia's biggest biennial tribal fair -


Sammakka-Saralamma Jatara – was held at the
SARALAMMA JATARA forest village of Medaram in Jayashankar-
Bhupalapally district of Telangana.
# Festival # History and culture
ABOUT SAMMAKKA-SARAKKA JATARA

A bi-annual
It is held bi-annually to honour the twin goddesses Sammakka and her daughter Sarakka.
festival

Held by Koya
It is held by forest dwelling Koya tribe of Telangana and surrounding States.
tribe

People from Madhya Pradesh, Odisha, Jharkhand, Chhattisgarh and Andhra Pradesh come for the
Participation
festival.

x Several communities in Telangana society support Jatara.


x Because, it is also a mythical narrative of two tribal women leaders who fought against the
Kakatiya’s Kakatiya rulers.
connection x Kakatiya rulers tried to annex their land and forests.
x According to the myth it was Sammakka’s curse which caused gradual decline and death of
Kakatiya rule.

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History, Heritage & Culture

ABOUT KAKATIYA RULERS

x The 12th and the 13th centuries saw the emergence of the Kakatiyas.
Emergence x They were at first the feudatories of the Western Chalukyas of Kalyana.
x Initially, they ruled over a small territory near Warangal (Telangana).

x Prola II, a ruler of this dynasty, ruled in mid twelfth century.


Expansion
x He extended his sway to the south and declared his independence.

x His successor Rudra pushed the kingdom to the north up to the Godavari delta.
Rule of Rudra x He built a fort at Warangal to serve as a second capital and faced the invasions of the Yadavas of
Devagiri.

x The next ruler Mahadeva extended the kingdom to the coastal area.
Ganapati, the
x In A.D. 1199, Ganapati succeeded him.
influential
ruler x He was the greatest of the Kakatiyas and the first after the Satavahanas to bring the entire Telugu
area under one rule.

x Ganapati Deva’s daughter Rudramba succeeded him in A.D.1262 and carried on the
The female
administration.
ruler
x She suppressed the internal rebellions and external invasions with the help of loyal subordinates.

x Prataparudra succeeded his grandmother Rudramba in A.D.1295 and ruled till A.D.1323.
x He pushed the western border of his kingdom up to Raichur (Karnataka).
Rule of
x He introduced many administrative reforms.
Prataparudra
x He divided the kingdom into 75 Nayakships, which was later adopted and developed by the
Rayas of Vijayanagara.

x In time of Prataparudra, the territory constituting Andhra Pradesh had the first experience of
invasion from north.
x In A.D.1303, the Delhi Sultan Ala-ud-din Khilji sent an army to the kingdom. But Prataparudra
defeated them.
x After that, another army under Malik Kafur invaded Warangal, Prataparudra yielded and agreed
Invasion from to pay a large tribute.
Delhi x When Ala-ud-din Khilji died, Prataparudra withheld the tribute. It provoked another invasion of
Sultanate the sultans.
x In another army attack, Ghiaz-ud-din Tughlaq sent a large army under Ulugh Khan to conquer
the area but owing to internal dissensions he called off the siege and returned to Delhi.
x Within a short period, he came back with a much bigger army. In this attack, Prataparudra died.
x Thus ended the Kakatiya rule, opening the gates of the Telugu land to anarchy and confusion
yielding place to an alien ruler.

The Kakatiya period was rightly called the brightest period of the Telugu history. The entire Telugu
Golden period
speaking area was under the kings who spoke Telugu and encouraged Telugu.

The most famous strongholds in the Kakatiya period were:


x Giridurgas -Anumakonda and Gandikota
Strongholds x Vanadurgas- Kandur and Narayanavanam
x Jaladurgas -Divi and Kolanu
x Sthaladurgas -Warangal and Dharanikota

Religion and x Saivism was the religion of the masses but intellectuals favoured revival of Vedic rituals.

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History, Heritage & Culture

Literature x They sought to reconcile the Vaishnavites and the Saivites through the worship of Harihara
(Harihara is the fused representation of Vishnu (Hari) and Shiva (Hara) from the Hindu tradition).
x Arts and literature found patrons in the Kakatiyas and their feudatories.
x Tikkana Somayaji wrote some cantos of the Mahabharata.
x It is notable that Sanskrit, which could not find a place in the Muslim-occupied north, received
encouragement at the hands of the Kakatiyas.
x Prataparudra was himself a writer and he encouraged other literature.

x The Kakatiya dynasty expressed itself best through religious art.


x The Kakatiya temples dedicated mostly to Siva.
x They reveal in their construction a blending of the styles of North India and South India which
influenced the political life of the Deccan.
x The most important of these temples are those at Palampeta, Hanamkonda (Telangana) and the
incomplete one in the Warangal fort.
x The temple at Palampeta is described as the `brightest gem in the galaxy of Medieval Deccan
Architecture temple architecture’.
x It was constructed by Recherla Rudra, a general of Kakatiya Ganapati.
x The figures in the temple are of a heterogeneous character comprising: gods, goddesses,
warriors, acrobats, musicians and mithuna pairs in abnormal attitudes and dancing girls.
x The Thousand-Pillared Temple at Hanamkonda was built by the Kakatiya king Rudra.
x This temple, dedicated to Siva, Vishnu and Surya, is star-shaped.
x After the fall of Kakatiyas, uncertainty prevailed over the region. Several small kingdoms came
into existence, Musunuri Nayakas occupied Warangal from Muslims.

While addressing an exhibition that showcased the forgotten Prince of yester


DARA
years Dara Shukoh, the Vice President of India, Shri M. Venkaiah Naidu said that
SHUKOH Prince Dara Shukoh’s writings can come as a refreshing source for infusing
peace and harmony.
# Personality #
The exhibition was organized by Mr. Francois Gautier, at Indira Gandhi National
Medieval India Centre for the Arts, in New Delhi.

ABOUT DARA SHUKOH

x Dara Shikoh was the eldest son of emperor Shah Jahan.


Who?
x He was the heir apparent to the Mughal throne, favoured by his father.

x However, he was unable to reign on the throne since he was defeated in the battle of Samugarh
The battle (May, 1658) by his younger brother Aurangzeb. Before, the battle of Samugarh, Dara Shikoh was
of defeated by Aurangzeb at Dharmat in April 1658.
Samugarh x In the battle of Samugarh, Dara was finally defeated by Aurangzeb.
x After that, Aurangzeb went on to rule the Mughal empire.

CONTRIBUTIONS OF DARA SHUKOH

x Dara Shukoh grew up under the influence of the teachings of the Sufi Saint, Shaik Muin-uddin Chisti.
Influence
x Mullah Shah Badakhshi was the spiritual mentor of Dara Shukoh. He belonged to the Qadiri order

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History, Heritage & Culture

of Sufism.

Promotion x He was seen as inheriting the qualities of his ancestor Akbar, in that he promoted religious pluralism
of and syncretism.
secularism x He leaned towards the Chishti order of Sufism that is known to have promoted tolerance.

x Dara Shukoh dedicated himself to create a bridge of Hindu-Muslim Unity.


x And was so learned that translated many Upanishads from Sanskrit to Persian for the Muslim
Scholars.
x This work is called Sirr-i-Akbar, the great mystery. Through his research, he reached a conclusion
that a common spiritual basis existed between Hindu and Islam.
x He wrote that a great deal of Quranic wisdom existed in Upanishads.
Literary
x He also documented the Quranic terms and their Sanskrit equivalents from Upanishads.
work
x He studied all prominent religions of the world especially Islam and Hinduism.
x He wrote the remarkable work called “Majma-ul-Bahrain” or the “The confluence of two seas”.
x He was of the belief that India too had its own prophet and that the essential attributes of both
Islam and Hinduism were identical.
x Dara Shukoh’s emphasis on secularism was the source of discomfort for Islamic scholars who
condemned him.

ABOUT FRANCOIS GAUTIER

A French national Francois Gautier is a French political writer and journalist based in India.

x Gautier is the founder of the Foundation for Advancement of Cultural Ties (FACT), an NGO which
Contributions is ‘committed to highlighting the magnificence of India and the threats to its sovereignty’.
x He also founded the Shivaji Maharaj Museum of Indian History.

He has also won the prestigious Nachiketa award for excellence in journalism and the Bipin Chandra
Award
Pal award.

KHAJURAHO DANCE The week-long Khajuraho dance festival was held at the
UNESCO world heritage site (Khajuraho temples) in a
FESTIVAL # Dance # Culture glittering ceremony.

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History, Heritage & Culture

ABOUT KHAJURAHO TEMPLES

x The Khajuraho group of monuments was built during the rule of the Chandela dynasty which
reached its apogee between 950 A.D. and 1050 A.D.
Period x The building activity started almost immediately after the rise of their power, throughout their
kingdom to be later known as Bundelkhand.
x Most temples were built during the reigns of the Yashovarman and Dhanga.
Location These monuments are located in Chhatarpur district, Madhya Pradesh within Vindhya mountain range.
x Khajuraho was mentioned by Abu Rayhan-al-Biruni (Al-Biruni), the Persian historian who accompanied
Mahmud of Ghazni.
Cited by
x Ibn Battuta, the Moroccan traveler in his memoirs mentioned visiting Khajuraho temples and called
them "Kajarra”.

IMPORTANT FEATURES OF KHAJURAHO TEMPLES

x The Khajuraho group of temples were built together.


Dedicated to x But these temples were dedicated to two religions, Hinduism (Vaishnavism and Saivism) and
Hinduism and Jainism.
Jainism x It suggests a tradition of acceptance and respect for diverse religious views among Hindus and
Jains in the region.

Depiction of Kaula and


A number of scenes at Khajuraho actually depict the Kaula and Kapalika ascetics (Saivism).
Kapalika

Impressive
In these temples, both the interior and exterior walls were lavishly decorated with carvings.
decoration

The sculptures were generally erotic in their themes and drew inspiration from Vatsyayana’s
Inspiration
Kamasutra.

Ingredient The temples were made of sandstone.

x The temples had three chambers- garbhagriha, mandapa and ardha-mandapa.


Chambers
x Some temples had a vestibular entrance to the garbhagriha known as antarala.

x Panchayatan style of temple making was followed.


Temple style x A Hindu temple is a Panchayatana one when the main shrine is surrounded by four subsidiary
shrines.

Base The temples were built on relatively high platform.

The largest The largest and currently most famous surviving temple is Kandariya Mahadeva built in the reign
temple of King Vidyadhara.

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SECURITY
# GS Paper III (Main)

LAMITYE 2018 A bilateral military exercise between India and


Seychelles was held in Seychelles archipelago.
# Military exercise # Bilateral relations

x Seychelles is an archipelago and a sovereign

state in the Indian Ocean.

x Importance: It lies east of mainland Africa

and has strategic location vis-s-vis sea route

operating via Red Sea and Arabian Sea.

x Seychelles boasts the highest nominal per

capita GDP in Africa and has a high HDI.

x It is also a popular tourist destination.

x Common ethnicity is Creole.

x In Seychelles, persons of Indian Origin

represent roughly 6% of the population of

Seychelles and initially mainly arrived as

indentured labourers under British India.

THINGS TO KNOW

x Lamitye means friendship in Creole, which is a local dialect of Seychelles.


x The Lamitye exercise is conducted biennially between Indian and Seychelles with aim of
Background
enhancing military cooperation and interoperability between the two countries.
x The aim Lamitye 2018 was fighting insurgency, terrorism and piracy threats.

Location of The eighth edition of Lamitye 2018, a bilateral military exercise between Indian Army and Seychelles
Exercise People’s Defence Force was held at Mahe Island in Seychelles.

x Assumption Island venture is a joint project between India and Seychelles wherein the proposed
facility will be owned by Seychelles and be jointly managed by both sides.
Assumption x The project is aimed at assisting Seychelles in securing its vast exclusive economic zone,
Island especially near the Mozambique Channel and to combat piracy.
x There have been reports of the island being used by the Indian navy as a military post, but is
being denied by both countries.

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Security

The Eastern Naval Command Operational Readiness Exercise (ENCORE),


ENCORE Theatre Level Readiness and Operational Exercise concluded on the Eastern
# Military exercise Seaboard recently.

THINGS TO KNOW

Location The exercise was conducted in real time covering a vast expanse of Indian Ocean Region (IOR).

Mandate of The exercise provided an opportunity to test the combat capability of the Eastern Naval Command
Exercise and refine action plans and contingencies for operations in complex maritime conflict zone.

x The exercise was conducted in phases to test various scenarios of war-fighting capabilities of
Purpose of the combat units including Special Forces to respond to given threat situations.
Exercise x The Tactical Phase intended to validate operational war fighting concepts and provided valuable
lessons to sharpen combat skills.

x There were participation of ships and submarines from the Western Naval Command,
Andaman & Nicobar Command and Indian Coast Guard.
Participants
x The exercise also included assorted naval and IAF aircraft including Fighters, Long Range Maritime
in Exercise
Reconnaissance (LRMP) aircraft, Remotely Piloted Aircraft (RPA) and Anti-Submarine Warfare
(ASW) helicopters.

What is x A theatre is an area or place in which important military events occur or are progressing.
Theatre level x It can include the entirety of the air space, land and sea area that is or that may potentially
exercise? become involved in war operations.

FATF LISTING OF A resolution has been passed at FATF, whereby Pakistan can be
placed in either the ‘black list’ or the ‘grey list’ of FATF.
PAKISTAN # Security
BACKGROUND

x The Financial Action Task Force (FATF) is an inter-governmental body established in 1989 by the
Group of Seven (G-7) in Paris, France.
What?
x It was formed with the intention to examine and develop measures to combat money
laundering.

x The objectives of the FATF are to set standards and promote effective implementation of legal,
regulatory and operational measures for combating:
Objective 9 Money laundering
9 Terrorist financing
9 threats to the integrity of the international financial system

x FATF issues a report containing a set of Forty Recommendations, which are intended to provide a
comprehensive plan of action needed to fight against money laundering.
x In 2001, the development of standards in the fight against terrorist financing was added to the
FATF ‘40+9’ mission of the FATF thereby further adding 9 Special Recommendations.
x FATF has formed 40 recommendations against money laundering and 9 special
recommendations against terrorist financing, which forms the commonly known ‘40+9’ FATF
Standards.

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Security

x The FATF conducts peer reviews of each member to assess levels of implementation of the FATF
Mutual Recommendations.
Evaluations x It provides an in-depth description and analysis of each country’s system for preventing criminal
abuse of the financial system.

x FATF issues a list of ‘Non-Cooperative Countries or Territories’ (NCCTs), commonly called the
FATF Blacklist. These countries or territories are considered to be uncooperative in international
efforts against money laundering and terrorism financing.
FATF Listings
x The grey list is a list of countries or territories with strategic anti-money laundering/countering
the financing of terrorism deficiencies for which they have developed an action plan with the
FATF.

FATF AND PAKISTAN

x Pakistan was put on the grey list in 2012 after the completion of an earlier Mutual Evaluation by
FATF, and therefore had to follow the action plan suggested by FATF.
Background
x In 2015, it was taken off the grey list, after the FATF was satisfied with Pakistan’s measures
undertaken to counter terror financing.

x The US, along with the UK, France and Germany, started a process at the FATF to co-sponsor a
Current motion to nominate Pakistan as a country having strategic deficiencies in countering financing of
Scenario terrorism.
x This motion was passed recently.

x Pakistan is now required to submit an Action plan to FATF in May, 2018. If the FATF approves the
Action Plan in June, 2018 meeting of FATF, it will make a formal announcement about placing
Future
Pakistan on the grey list.
Scenario
x If Pakistan fails to submit an Action Plan, or if the FATF does not accept it, it can be placed on the
black list, along with North Korea and Iran.

x Pakistan was on the FATF grey-list from 2012 to 2015, but the economic impact of the grey-listing
was minimal.
Grey List
x Within this period, Pakistan was able to successfully complete an IMF program and rose over $5
Impact
billion from the international bond markets. Its imports and exports remained stable and the grey-
listing did not raise any significant barriers to trade.

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Miscellaneous
WINTER OLYMPICS
# SPORTS

The 2018 Winter Olympic Games in PyeongChang, South


th th
Korea, were held between 9 and 25 February 2018.
This was the first time that South Korea had hosted the
Winter Olympics and the second Olympics held in the
country overall, after the 1988 Summer Olympics in
Seoul.
The games featured 102 events in fifteen sports.

THINGS TO KNOW

x The first Winter Olympics were held in Chamonix, France in 1924.


Winter x Until 1992 the Winter and Summer Olympic Games were held in the same years, but in
Olympics accordance with the 1986 International Olympic Committee (IOC) meet, it was decided to place the
Summer and Winter Games on separate four-year cycles in alternating even-numbered years.

x Norway led the total medal tally with 39, followed by Germany and Canada.

Country with
highest
medals in
2018

North and South Korea marched under a united flag at the 2018 Winter Olympics opening ceremony
Camaraderie in Pyeongchang. This was a symbolic break in tensions between the two nations over North Korea’s
nuclear program.

Suspension of Russia: After a state-sponsored doping program was exposed following the 2014
Controversy Winter Olympics, the Russian Olympic Committee was suspended, and thus the selected athletes
were allowed to compete neutrally under the IOC designation of "Olympic Athletes from Russia".

2022 Winter Beijing was selected as host city of the 2022 Winter Olympics after beating Almaty at the IOC Session
Olympics in Kuala Lumpur, Malaysia.

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Miscellaneous

LAUREUS WORLD Roger Federer became the most decorated winner in the history of
SPORTS AWARDS Laureus World Sports Awards after he bagged two Awards at the
Laureus World Sports Awards 2018.
# SPORTS

Federer was honoured with Sportsman of the Year along with Comeback
of the year title. Sportswomen of the Year was Serena Williams. Team of
the Year was Mercedes F1.

ABOUT THE AWARD

x The Laureus World Sports Awards is held annually, celebrating the most
remarkable men and women from the world of sport along with their
achievements from the previous calendar year.
x It was established in 1999 by Laureus Sport for Good Foundation founding patrons Daimler and Richemont and
supported by its global partners Mercedes-Benz and IWC Schaffhausen.
x The awards are considered highly prestigious and are frequently referred to as the sporting equivalent of an
"Oscar".

THE RUSSIAN REVOLUTION


# BOOKS AND AUTHORS
Genre: Non-Fiction, History and Politics
Author: Achala Moulik
With reference to the coverage on the centenary year of the Russian revolution in
FOCUS December issue, now here comes a book on the in-depth analysis of this
revolution’s impact worldwide. This revolution laid the foundation for the first
practical application of Marxism.
Flow of the book: The book offers perspectives on the Russian Revolution’s long-
term implications for democratic politics and its relevance for struggles for social
justice across the world.
The book seeks to emphasise that the revolution, far from being a one-off event, is
of a permanent character with long-term implications, and has contributed to the
continued relevance of the concept of welfare state in an era of free-market
capitalism.
For examples, it has chapters on education, health care, science, art, literature,
ballet and theatre, music composers, the Red Army Ensemble, chess and sports,
Soviet Union and the World, and relations with India.
Although many changes had taken place in the Soviet Union since 1917, including
the dissolution of the Soviet state and the emergence of the Russian Federation,
the ideas generated by the Russian Revolution have remained relevant.
So, this book presents an interesting connect with the past with the current times.

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ETHICS, INTEGRITY & APTITUDE
# GS Paper IV (Main)

This section is focusing on one of the most important


and powerful code of ethics developed by Buddha and
adopted by Asoka the Great, the most accomplished
ruler of the Mauryas, after his change of mind and
influx of new thoughts, post the battle of Kalinga. He
DhaMma : Code of tried to carve an ethically driven empire in which even
the ruler himself was bounded by it. This form of rule
Ethics and governance is an important lesson on ethics in
governance and in the daily lives of the people. The
intent is to show that events/extracts from History
can easily be picked up in answering questions in GS
Paper-II & IV and Essay paper.

Read, enjoy, ponder!


----------------------------------------------------------------------------------
But, before moving on, let us see some questions which UPSC has recently asked?

x Explain how ethics contributes to social and human well-being. (2016)


x Law and ethics are considered to be the two tools for controlling human conduct so as to
make it conducive to civilized social existence. (a) Discuss how they achieve this objective.
(b) Giving examples, show how the two differ in their approaches. (2016)
x Differentiate between the following (200 words); a) Law and Ethics; b) Ethical management
and Management of ethics; c) Discrimination and Preferential treatment; d) Personal ethics
G.S. Paper- IV and Professional ethics. (2015)
x A mere compliance with law is not enough, the public servant also has to have a well-
developed sensibility to ethical issues for effective discharge of duties.” Do you agree?
Explain with the help of two examples, where (i) an act is ethically right, but not legally and
(ii) an act is legally right, but not ethically. (2015)
x What do you understand by ‘values’ and ‘ethics’? In what way is it important to be ethical
along with being professionally competent? (2013)

Essay With greater power comes greater responsibility. (2014)

THE DHAMMA
In brief: It is a non-aggressive, moral and philosophical system expounded by the Buddha, which demands no blind
faith from its adherents, expounds no dogmatic creeds, encourages no superstitious rites and ceremonies, but
advocates a golden mean that guides a disciple through pure living and pure thinking to the gain of supreme wisdom
and deliverance from all evil. The teachings of Dhamma are summarised in Noble Eightfold path.

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Ethics, Integrity & Aptitude

Noble Eightfold path: Ethical conduct is built on the vast conception of universal love and compassion for all living
beings, on which the Buddha’s teaching is based.

According to Buddhism, for a man to be perfect there are two qualities that
he should develop equally: compassion (karuna) on one side, and
wisdom (panna) on the other.
9 Compassion represents love, charity, kindness, tolerance, and such
noble qualities on the emotional side, or qualities of the heart.
9 Wisdom stand for the intellectual side or the qualities of the mind.
9 Emotional intelligence: If one develops only the emotional, neglecting
the intellectual, one may become a good-hearted fool; while to develop
only the intellectual side neglecting the emotional may turn one into a hard-hearted intellect without feeling for
others.
Therefore, to be perfect, one has to develop both equally. That is the aim of the Buddhist way of life: in it wisdom and
compassion are inseparably linked together and these are very important traits for an effective governance.

ETHICAL CONDUCT
These factors (right speech, right action, and right livelihood) of the eightfold path constitute ethical conduct. It should
be realized that the Buddhist ethical and moral conduct aims at promoting a happy and harmonious life both for the
individual and for society. This moral conduct is considered as the indispensable foundation for all higher spiritual
attainments. No spiritual development is possible without this moral basis.

Right speech means abstention


1) from telling lies,
2) from backbiting and slander and talk that may bring about hatred, enmity, disunity, and
disharmony among individuals or groups of people,
3) from harsh, rude, impolite, malicious, and abusive language, and
4) from idle, useless, and foolish babble and gossip.
When one abstains from these forms of wrong and harmful speech one naturally has to speak the
Right Speech truth, has to use words that are friendly and benevolent, pleasant and gentle, meaningful, and
useful. One should not speak carelessly: speech should be at the right time and place. If one cannot
say something useful, one should keep “noble silence.”
But this is facing huge challenge due to ‘Divide and Rule’ politics.
Even Supreme Court has taken a stand on this with respect to Section 123(3), Representation of
People Act (RPA) 1951.
The Supreme Court has clearly ruled that religion, race, caste, community or language would not be
allowed to play any role in the electoral process and that election of a candidate would be declared
null and void if an appeal is made to seek votes on these considerations.

Right action aims at promoting moral, honourable, and peaceful conduct. It admonishes us that we
should abstain from destroying life, from stealing, from dishonest dealings, from illegitimate sexual
intercourse, and that we should also help others to lead a peaceful and honourable life in the right
Right Action
way.
But this has taken a beating from the cases of mob lynching, honour killings, terrorism, bank frauds,
Paradise and Panama Papers etc.

Right livelihood means that one should abstain from making one’s living through a profession that
Right
brings harm to others, such as trading in arms and lethal weapons, intoxicating drinks or poisons,
Livelihood
killing animals, cheating, etc., and should live by a profession which is honourable, blameless, and

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Ethics, Integrity & Aptitude

innocent of harm to others. One can clearly see here that Buddhism is strongly opposed to any kind
of war, when it lays down that trade in arms and lethal weapons is an evil and unjust means of
livelihood.
This has been challenged by the huge arms industry, arms lobby, and related profits. These arms
are used for killing innocents in Syria, Yemen etc. or even by a rogue student killing school children
in Florida.

MENTAL DISCIPLINE
Next comes mental discipline, in which are included three other factors of the eightfold path: namely, right effort, right
mindfulness, and right concentration.

Right effort is the energetic will


1) to prevent evil and unwholesome states of mind from arising,
2) to get rid of such evil and unwholesome states that have already arisen within a man,
Right Effort
3) to produce, to cause to arise, good, and wholesome states of mind not yet arisen, and
4) to develop and bring to perfection the good and wholesome states of mind already present in a
man.

Right mindfulness is to be diligently aware, mindful, and attentive with regard to


1) the activities of the body (kaya),
2) sensations or feelings (vedana),
3) the activities of the mind (citta) and
Right
Mindfulness 4) ideas, thoughts, conceptions, and things (dhamma).
With regard to sensations and feelings, one should be clearly aware of all forms of feelings and
sensations, pleasant, unpleasant and neutral, of how they appear and disappear within oneself.
Concerning the activities of mind, one should be aware whether one’s mind is lustful or not, given
to hatred or not, deluded or not, distracted or concentrated, etc. In this way one should be aware of
all movements of mind, how they arise and disappear.

The third and last factor of mental discipline is right concentration, leading to the four stages of
Dhyana, generally called trance.
1) In the first stage, passionate desires and certain unwholesome thoughts like sensuous lust, ill-
will, languor, worry, restlessness, and skeptical doubt are discarded, and feelings of joy and
happiness are maintained, along with certain mental activities.
2) In the second stage, all intellectual activities are suppressed, tranquillity, and “one-pointedness”
Right
of mind developed, and the feelings of joy and happiness are still retained.
Concentration
3) In the third stage, the feeling of joy, which is an active sensation, also disappears, while the
disposition of happiness still remains in addition to mindful equanimity.
4) In the fourth stage of Dhyana, all sensations, even of happiness and unhappiness, of joy and
sorrow, disappear, only pure equanimity and awareness remaining.
Thus the mind is trained and disciplined and developed through right effort, right mindfulness, and
right concentration.

WISDOM
The remaining two factors, namely right thought and right understanding, constitute wisdom in the noble eightfold
path.

Right thought denotes the thoughts of selfless renunciation or detachment, thoughts of love and
thoughts of non-violence, which are extended to all beings. It is very interesting and important to
Right Thought
note here that thoughts of selfless detachment, love and non-violence are grouped on the side of
wisdom. This clearly shows that true wisdom is endowed with these noble qualities, and that all

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Ethics, Integrity & Aptitude

thoughts of selfish desire, ill-will, hatred, and violence are the result of a lack of wisdom in all
spheres of life whether individual, social, or political.
It was best symbolised by our Father of the Nation, M.K. Gandhi.

Right understanding is the understanding of things as they are, and it is the four noble truths that
explain things as they really are. Right understanding therefore is ultimately reduced to the
understanding of the four noble truths. This understanding is the highest wisdom which sees the
Ultimate Reality.
Right
According to Buddhism there are two sorts of understanding. What we generally call
Understanding
“understanding” is knowledge, an accumulated memory, an intellectual grasping of a subject
according to certain given data. This is called “knowing accordingly” (anubodha). It is not very deep.
Real deep understanding or “penetration” (pativedha) is seeing a thing in its true nature, without
name and label. This is terms as applied knowledge, based on scientific temper.

ASHOKA'S POLICY OF DHAMMA

x By the time Ashoka ascended the throne, the Mauryan imperial system had become more
complex by encompassing various cultures, beliefs and social and political patterns.
x Ashoka had to either maintain the structure by force, which would incur tremendous expense, or
by defining a set of social norms which would be acceptable to all social practices and religious
beliefs.
x He was aware of the tensions which the heterodox sects—Buddhism, Jainism and Ajiviksim—had
Need for generated in society. They were all opposed to the domination of the Brahmans and had a
adoption growing number of supporters. But Brahmans continued to control society and hostility was
inevitable. It was essential to bring about a climate of harmony and mutual trust.
x There were many areas within the empire where neither the Brahmanical system nor the
heterodox sects prevailed, referred by Asoka as the country of Yavanas, mostly the tribal areas.
x To make the empire survive and to bring some cohesion within the empire in the midst of this
diversity, some common patterns of behaviour and common approaches to the society's problems
were needed.

x The principles of Dhamma were formulated to be acceptable to people belonging to different


communities and following any religion.
x Dhamma was not given any formal definition or structure. It emphasized tolerance of people and
the notion of showing consideration.
x Ashoka pleaded for tolerance of different religious sects in an attempt to create a sense of
Principles harmony. The policy of Dhamma also laid stress on non-violence, which was to be practiced by
giving up war and conquests and also as a restraint on the killing of animals.
x The policy of Dhamma also included other welfare measures, like the planting of trees and digging
of wells. Ashoka attacked ceremonies and sacrifices as meaningless.
x A group of officers known as Dhamma mahamattas were instituted to implement and publicize
the various aspects of Dhamma

DISPLAY THROUGH ROCK EDICTS

Major Rock
prohibits animal sacrifice
Edict I

Major Rock Measures of social welfare. It mentions medical treatment for men and animals, construction of
Edict II roads, wells and tree planting.

Major Rock Plea for tolerance amongst all sects. Reflects the anxiety the king felt because of conflict between

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Ethics, Integrity & Aptitude

Edict VII & XII sects and carries his plea for harmony.

Major Rock Dhammayatra i.e. connecting with people. Dhammayatras enabled the emperor to come into contact
Edict VIII with various sections of people in the empire.

Major Rock
Attacks ceremonies, rituals, fasts
Edict IX

Major Rock
Denounces fame and glory and reasserts the merits of following the policy of Dhamma.
Edict X

Major Rock
This Rock Edict pleads for conquest by Dhamma instead of war.
Edict XIII

DHAMMA SHADOW ON THE INDIAN CONSTITUTION


For all, the guiding light is the PREAMBLE of the Indian Constitution.

WE, THE PEOPLE OF INDIA, having solemnly resolved to constitute India into a [SOVEREIGN SOCIALIST SECULAR
DEMOCRATIC REPUBLIC] and to secure to all its citizens:
JUSTICE, social, economic and political;
LIBERTY of thought, expression, belief, faith and worship;
EQUALITY of status and of opportunity;
and to promote among them all
FRATERNITY assuring the dignity of the individual and the [unity and integrity of the Nation];
IN OUR CONSTITUENT ASSEMBLY this twenty-sixth day of November, 1949, do HEREBY ADOPT, ENACT AND GIVE TO
OURSELVES THIS CONSTITUTION.

FUNDAMENTAL DUTIES FOR ALL


1. To abide by the constitution and respect its ideal and institutions;
2. To cherish and follow the noble ideals which inspired our national struggle for freedom;
3. To uphold and protect the sovereignty, unity and integrity of India;
4. To defend the country and render national service when called upon to do so;
5. To promote harmony and the spirit of common brotherhood amongst all the people of India transcending
religious, linguistic and regional diversities, to renounce practices derogatory to the dignity of women;
6. To value and preserve the rich heritage of our composite culture;
7. To protect and improve the natural environment including forests, lakes, rivers, and wild-life and to have
compassion for living creatures;
8. To develop the scientific temper, humanism and the spirit of inquiry and reform;
9. to safeguard public property and to abjure violence;
10. To strive towards excellence in all spheres of individual and collective activity, so that the nation constantly rises to
higher levels of endeavor and achievement.
11. who is a parent or guardian, to provide opportunities for education to his child, or as the case may be, ward
between the age of six and fourteen years.

UNDERSTAND IT MORE
The current relevance of Dhamma is beautifully explained in a beautiful article extracted from ‘The Hindu’, given here
with some additions.

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Ethics, Integrity & Aptitude

WHAT THE RULER AND THE RULED OWE ONE ANOTHER


(A SYMBIOTIC RELATIONSHIP)

The Arthashastra is not the only source of political thinking in India. Another tradition exists from which we can learn
much, which is as relevant in our own, very different context of popular rule (democracy) as it was in ancient times.

I am thinking here of a tradition in which the idea of the Chakravartin, the wheel turner, is of great significance. The
wheel that these great rulers turn is the wheel of Dharma or Dhamma (law inspired by morality) — just as the Buddha
turned the wheel of Dhamma in the religio-philosophical sphere, just so the Chakravartin turns it in the political
sphere. The turning of the wheel is a metaphor for a radical restructuring of the world in accordance with a
politico-moral vision. The king launches an entirely new set of political and administrative measures inspired by
public morality and becomes a normative ruler — the just ruler who brings peace and prosperity to his subjects. If he
conquers other kingdoms, he does so not by physical force but by moral appeal. People submit to his rule not from
coercion but voluntarily, out of respect for his adherence to the principles of Dhamma.

The Asoka template: The king is also bounded by Dhamma like his subjects

The king who first embodies the idea of a moral ruler or the ‘normative king’ is none other than Asoka. Before him,
or before he turned his back on the tradition of physical conquest and violence to become the Chakravartin, the
rightness or wrongness of actions was determined solely by the king himself. The law was not applied
consistently or uniformly but in an extremely partial and arbitrary manner. Thus, Rajas often rewarded or punished
their subjects to serve their own idiosyncratic moral sense or personal interests. But now, by fashioning the idea of
Dhamma, Asoka detached his personal views from what is morally right. By submitting to what is morally right, he
sought to save himself from acts that he might come to regret later, to tame the institution of kingship itself, to limit his
own absolute power.

If Dhamma is a higher moral principle above not just the ruled but the ruler too, then we have within our midst
not just what the ruled owe their rulers, but, in turn, what the ruler owes the ruled. The politico-moral order stands
above the king, at least partially. The head of the family is as much part of it as his wife and children are. Likewise, the
king is part of the political order just as much as his subjects are. And just as all members of the family owe something,
though not the same thing, to each other, just so the king owes something to his subjects though qualitatively different
from what the subjects owe him.

What the subjects owe to the king and his officials is obedience to his commands. But these commands are not
his personal whim but flow from Dhamma itself.

Furthermore, the Asokan Pillar Edict 7 clarifies that compliance to Dhamma must arise largely from nijjhattiya
(persuasion), not solely from niyama (legislation). And we can be persuaded only when something makes sense to us;
when what is commanded accords with what one understands Dhamma to require. Everyone must follow Dhamma
out of an inner disposition to comply, with one’s conscience, as it were. In short, rule by Dhamma may also be viewed
as an attempt to transform brute power into moral authority — commands are followed because they are seen to be
good, not merely because the ruler so commands.

(Very important for the current times when everything is being forcibly imposed without scrutiny through rationality.
Respect is always generated, not forced.)

This does not exhaust the political dimension of Dhamma, however. For it must also include what the king owes his
subjects.

Pillar Edict 6 elaborates what this is: lokassa hitasukhaye (welfare and happiness of all living beings in this world), and
hereafter in swarga (heaven).

According to Pillar Edict 4, the king's officials owe something to the subjects too — samata (impartiality), viyohala or
vyavahar samata (impartiality in the social domain) and damda samata (impartiality in the domain of retributive
punishment).

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Ethics, Integrity & Aptitude

Note: In the reign of Dhamma, the king is not just a ruler but a leader, one who leads his subjects by example. Apart
from being a father to all (important in that context), Asoka tried to be one who saw further and clearer than others,
sometimes a teacher, sometimes a healer; always, a moral exemplar.

Lessons for today

What is the takeaway from this ancient conception of Dhamma-inspired Chakravartin? Not the idea of kingship (or the
rule of one man), of no value in a democratic republic. Nor the idea of the ruler as our father, our ‘maibaap’. In a
democracy, we rule collectively; at least as equal citizens, we rule and are ruled in turn. But even our own rule
can become arbitrary, where power is exercised by popular whim rather than by predictable, stable norms emanating
from collective reflection.

So, the takeaway is that we owe it to ourselves and to each other that there be :

a) impartial rule of law which checks abuse of popular power, saving us, the people, from acts that we might come to
regret later and that binds even those we have temporarily chosen to govern us;

b) something like Dhamma, a constitutional morality — justice, tolerance, freedom, equality and civic friendship —
that guides us all, the ruler and the ruled. And our elected representatives owe it to us that they be not merely
rulers but moral exemplars, faithful adherents themselves of the rule of law and constitutional morality.

Hence, the Chakravartin tradition remains a valuable resource for our democratic republic.

THOUGHTS FOR UNDERSTANDING


(# Thinkers)
THINKERS THOUGHTS

Nearly all men can withstand adversity, but if you want to test a man’s
Abraham Lincoln (Ex- President)
character, give him power.

I count him braver who overcomes his desires than him who overcomes his
Aristotle (Thinker)
enemies.

Mahatma Gandhi (Leader) The weak can never forgive; forgiveness is the attribute of the strong.

All the thoughts mentioned above are potential topics for Essay Paper and for framing questions for GS Paper IV.

----------------------------------------------------------------------------------

FOCUS | MARCH 2018 | RAU’S IAS 99


Glossary
# Terms

Enrich Your Concepts

x It is also known as a credit squeeze.


x This refers to an economic situation where banks and other financial institutions become
extremely reluctant to provide loans to businesses.
x This could be the result of banks suffering huge losses on their portfolio, which makes them
Credit crunch
adopt a cautious approach to protect their equity.
(# Economy)
x It could also happen when banks begin to doubt the repayment capability of their customers
amidst a general gloom in the overall economy.
x Example: Rising NPAs and banks’ reluctance to offer easy loans; Decline in real estate and banks
doubt about the repayment capability.

x This refers to the observation that those who focus on investing in opportunities that could
potentially yield extraordinary gains eventually outperform those who focus only on investments
that yield normal returns.
Babe Ruth x Although betting on high-yield investments can lead to a number of losses, the huge profits on
effect successful bets can easily compensate for these losses as long as the losses are cut short
(# Economy) immediately.
x It is named after the legendary American baseball player Babe Ruth who, despite conceding a lot
of strikeouts, managed to achieve a high batting average by hitting enough home runs.
x Eg. Investment in land, real estate, stocks, mutual funds, Non convertible debentures, ULIP etc.

x This refers to the phenomenon wherein people tend to change their original preference between
two choices when they are presented with an asymmetric third choice.
x Consumers, for instance, might increase their preference for a product that is of better quality
over a cheaper product that is of lower quality when they are presented with a third choice that
Decoy effect
is worse than the first product in terms of both quality and price.
(#
x The decoy effect, postulated by American marketing professor Joel Huber, is employed by
Psychology)
marketing companies to influence the choices of consumers in a subtle manner.
x Example in elections: The third-party candidate in a major election is the decoy, causing voters
to choose between the two front-runners. That third party candidate can highlight the superiority
or inferiority of the two leading candidates based on his or her virtues or deficiencies.

x The tick index is one of the many indicators used by traders to gauge the general mood of the
market.
x This refers to a financial indicator that shows the number of stocks, or any other financial
Tick Index (#
security, in an index that during any particular moment of the day are trading above or below
Economy)
their last closing price.
x It is calculated simply by subtracting the number of stocks showing downticks from the number
of stocks that are showing upticks during the day. It gives traders a good idea of the general

FOCUS | MARCH 2018 | RAU’S IAS 100


Glossary

breadth of a market advance or decline, which can have an impact on their trades.
x Example: Speculation of rise and fall in share prices.

x This refers to the phenomenon wherein a low-income country that hopes to grow into a middle-
or high-income country, after witnessing a period of high economic growth, fails to achieve its
goal.
Late
x Instead, it gets trapped in its lower income status due to various reasons. Rapid growth
converger
witnessed by such countries turns out to be the result of favourable economic conditions and
stall
hides the structural weaknesses in those economies.
(# Economy)
x Resource-rich economies generally witness high growth during periods of increasing commodity
prices, which in turn leads to hopes of sustained economic growth. Such hopes come crashing
down after commodity prices fall.

x This refers to the tendency among people to be courteous to those who seek their opinion.
x This prevents the free expression of any honest feedback that could be perceived as negative
feedback by the recipient.
Courtesy bias x Employees of a company, for instance, might feel hesitant to express their honest opinion about
(#Psychology) the company’s new product to their boss for the fear of offending him.
x While the courtesy bias can save people from uneasy situations in the short term, it can also
hinder the exchange of constructive feedback that can help improve matters. Some
organisations resort to anonymous feedback mechanisms to overcome the problem.

x This refers to the tendency among managers and owners of a company to pursue ambitious new
projects that eventually fail to earn sufficient returns, thus harming the long-term financial health
of the company.
x It is named after the Greek mythological character Icarus who, in his excitement to fly with his
Icarus factor
new wings made of wax, flew too close to the sun despite advice to the contrary and fell to his
(# Business)
death as a result.
x For instance, a new product launched to capture market share from competitors can deplete the
existing cash reserves of the company or even increase its debt burden and other costs without
a commensurate increase in income. E.g. Loss to Tata Motors due to Tata Nano.

x This refers to the rapid rise in the price of a stock or any other financial security during the final
stages of a bull market and suggests a likely end to the rally soon.
x Such a melt up, although unwarranted by fundamentals, is caused by the fear among investors
of missing out on further gains in the price of stocks.
Melt up
x This causes them to pour more capital into the market, thus further boosting the prices of
(# Finance)
stocks. There is generally, however, no definite criteria on what defines a melt up. The melt up
phase of a stock market rally can last for many weeks or months, and is usually followed by an
equally rapid fall in stock prices that leads to panic among investors.
x Example: Stock market crash in global meltdown in 2008.

x This refers to a phenomenon where the prices of certain goods witness fluctuations that are
cyclical in nature. It happens due to faulty producer expectations.

Cobweb cycle x The producers of agricultural goods, for instance, might decide to increase their output one year
because their product commanded a very high price the previous year. This, however, might lead
(# Economics)
to overproduction and cause prices to slump that year, thus leading to losses.
x Such cyclical price fluctuations are more severe in markets where speculators are banned from
hoarding goods to sell them later at a higher price. The idea was proposed by Hungarian

FOCUS | MARCH 2018 | RAU’S IAS 101


Glossary

economist Nicholas Kaldor.


x Example: Alternate rise and fall in prices of Tomatoes, Onion and Potatoes (TOP).

x This refers to the observation that companies that report unexpected bad news to their investors
may report even more negative news in the future.
x It is generally used to warn investors about the likelihood of bigger problems emanating from
companies that are not transparent in their reporting to investors.
Cockroach
x The theory is named after the common observation that the presence of a single cockroach in
Theory (#
the kitchen likely suggests that there may be more hidden in the same area.
Finance)
x Many investors might refrain from investing in companies that have reported bad news as they
expect worse to follow.
x Example: Even this can happen with banks such as Nirav Modi- Mehul Choksi case, this may lead
to speculation about many more cases like this.

FOCUS | MARCH 2018 | RAU’S IAS 102


Part TWO

CONTRIBUTORS
ZONE
articles .opinions .essays .notes
by rau’s professors &students
lEAD ARTICLES

BANK FRAUDS
#Banking and Finance
MAHARSHI SHARMA, EDITORIAL TEAM
& EDUCATOR: DAILY NEWS SIMPLIFIED

The recent news pertaining to bank fraud by Nirav Modi firms which are created for the purpose of money
in Punjab National Bank and the loan default by Rotomac laundering. Most shell companies do not deal in any
has shaken India’s financial sector, leading to a product or render any service. These companies hold
government and central bank crackdown on lenders’ assets only on paper and not in reality.
systems and practices. Alleged fraud cases have been
unearthed in other banks as well such as Oriental Bank The SWIFT (Society for Worldwide Interbank Financial
of Commerce, Bank of Baroda, Andhra Bank etc. In light Telecommunications) system, akin to a closed group
of these events, it is clear that internal control using an instant messaging platform, is used by banks
mechanisms and supervisory mechanisms in banks are worldwide to securely transmit coded information and
not satisfactory. instructions on financial transactions. In its complaints,
PNB alleged that the SWIFT system that was used to
This article talks about how bank rules were flouted, the authorise the illicit transactions bypassed its internal
supervisory failure of banks in the country, its impact on systems (core banking solution). Thus misuse of SWIFT
the financial sector and measures that should be system resulted in the frauds.
adopted to improve banking sector regulation.
These incidents reflect limited capability of banks to
undertake risk management. There are various types of
How bank rules were risks faced by banks such as credit risk and operational
risk among others. Credit risk is the potential of a
flouted? counterparty to fail to meet its loan obligations. It is the
most significant risk in Indian scenario as the level of
Bank rules were flouted by the issue of unauthorized non-performing assets (NPAs) is very high. Operational
Letters of Undertaking (LoU) and misuse of the SWIFT risk is the risk of loss resulting from inadequate or failed
framework. LoU is a bank guarantee that enables a internal processes, people and systems. It is due to these
bank's customer to raise short term credit/buyers’ credit risks that such events have happened.
from another Indian bank's foreign branch. It has to be
another Indian bank because LoU is not recognised by
foreign banks. This instrument was created by the
Impact on the financial
Reserve Bank of India to help importers obtain credit on
easy terms. However, these LoUs were misused by not
sector
recording them as contingent liabilities in bank's books
thus leading to excessive issue of LoUs and misuse of Negative impact on buyers’ credit
funds by transferring them to shell companies. Shell
The bank frauds have created negative implications on
companies are companies that include multiple layers of
other sectors of banking. One of them is buyers' credit

FOCUS | March 2018 | R AU’S IAS 104


used for trade financing. In the aftermath of such frauds, Discontinuation of issue of LOUs
banks have become reluctant to issue guarantees
through LOUs. This has resulted in increasing the interest RBI has decided to discontinue the practice of providing
rates on buyers' credit and has adversely affected trade guarantees by issuing LOUs and letters of comfort for
financing. It is mainly impacting small traders. trade credits for imports to India. The decision will be
applicable to authorised dealer category-I banks. It is
Buyers’ credit is short term credit available to an expected to have a negative impact on the trade
importer (buyer) from overseas lenders such as banks for financing activities of the country as importers heavily
goods that they are importing. It helps local importers relied on LOUs as it is a cheap source of credit. LOUs for
obtain access to cheaper foreign funds that may be trade credit to importers can still be issued but only
closer to London Interbank Offered Rate (LIBOR) as subject to compliance to certain provisions.
against local sources of funding which are costly. LIBOR is
a benchmark rate which some of the world's leading
banks charge each other for short-term loans. It serves
Measures to improve
as the first step to calculating interest rates on various
loans throughout the world. LIBOR is administered by the banking regulation
ICE Benchmark Administration (IBA), and is based on five
currencies: U.S. dollar (USD), Euro (EUR), pound sterling Role of banks: Repeatedly the government and RBI have
(GBP), Japanese yen (JPY), and Swiss franc (CHF). It is the said that banks should operate autonomously with
world's most widely used benchmarks for short-term greater professionalism, transparency and accountability.
interest rates. Buyers’ credit interest rates are amongst For this banks should assess the credit-worthiness of
the lowest in credit products. It allows importers to borrower before sanctioning loan; applying a regular
manage their cash flows. This credit facility is available evaluation and rating system of investment
for 90 days, 180 days and 1 year. opportunities; fix prudential limits; enforce maximum
limit exposure to a single borrower; alertness on the part
The process of obtaining buyers’ credit is simple. For of staff at all stages of credit dispensation. Also, large
example: Person A whose bank is PNB is an importer. He exposure to a single borrower should be avoided by
asks PNB to issue a LOU on his behalf so that he can banks.
obtain overseas credit to buy imports. Hence, PNB issues
a LOU to another Indian bank located overseas with a Role of government: Since, the biggest fraud has
guarantee to pay back on the due date. Hence the occurred in PNB which is a PSB, it puts a question on the
overseas bank deposits this amount in the NOSTRO sovereign guarantee and trust in the public banking
account of PNB. Nostro account refers to an account that system. Since government is the major shareholder in all
a bank holds in a foreign currency in another bank. For public sector banks, it should take serious steps to
example, Bank X has an account with Bank Y in Bank Y's improve risk management and corporate governance by
home currency. To Bank X, that is a Nostro account, banks. It should empower the bank's managements,
meaning "our account on your books". secure their independence and reduce political
interference in bank's managements.
Since, buyers’ credit is also a short term source of credit,
its interest rate depends on LIBOR and it is usually 20-25 Role of RBI: RBI already has a mechanism for corporate
bps above LIBOR. However, in the aftermath of PNB governance in banks. It undertakes disclosure and
scam, the interest rate on LOUs/ buyers credit has transparency measures for free flow of information, off-
increased to around 50-60 bps above LIBOR. This will site surveillance mechanism to monitor the movement of
negatively impact trade financing and affect forward assets, its impact on capital adequacy and overall
contracts between the importers and suppliers. It has efficiency. It is also implementing the Prompt Corrective
also affected the banking dealings between Indian and action by specifying benchmark ratios for Capital
foreign banks. Adequacy Ratio, Non-Performing Assets and Return on
Assets. Any breach on these ratios is considered as a
warning. However, the occurrence of these frauds
necessitates that RBI should focus on banking regulation

FOCUS | March 2018 | R AU’S IAS 105


by ensuring effective stressed asset management and For example: global financial crisis of 2008. Hence, the
ensure that the banking system recognises financial need of the hour is strengthening the regulation of
distress early and takes prompt steps to resolve it. RBI banks.
has also mandated banks to implement prescribed
Use of blockchain technology: Use of blockchain
measures to strengthen SWIFT operating environment.
technology which maintains a chronologically ordered
record of all actions and files (“blocks”) linked together
Constitution of Y.H Malegam Committee: Further,
(“chain”) in a distributed and decentralized database can
looking at the rising frauds in banking system, RBI has
help to bring efficiency and transparency in banking
decided to constitute an expert committee under the
transactions. It is based on an electronic decentralised
chairmanship of Y.H Malegam to look into the matters of
ledger that gives all the participating entities, including
asset classification by banks and frauds and their banks, the ability to access a single source of
prevention. information. It also enables them to track documentation
and authenticate ownership of assets digitally, as an un-
Is privatisation the answer to banking sector
alterable ledger in real time. This technology allows easy
problems? Not really. This is because the problem lies in tracking and verification of entries.
regulation and not ownership. Poorly regulated private
banks are more prone to scams. Also, private sector
banks may exploit banking rules to earn higher profits.

THE INTERNATIONAL FORAY OF INDIAN


NATIONAL RUPEE
#Economy
HIRALAL MANDAL, EDITORIAL TEAM
& EDUCATOR

The outbreak of Global Financial Crisis (GFC) in 2008 and (RBI) set up two committees under its officials in 2010
its spill-over to the entire world reflected the inherent and 2011 to study the prospect of internationalising the
vulnerabilities and systematic risks in the existing Rupee. The committees recommended a cautious
international monetary system. The failure of the big approach towards the making of international foray of
four currencies 1
as an international reserve has INR taking the factors, such as the size of the Indian GDP,
prompted other emerging countries to reconsider the lower presence in global trade and partial capital account
role of their currencies as global alternatives to these. convertibility into account. At the same time, they
China, taking advantages of this have embarked on an endorsed the idea of increasing the role of the INR in its
local region where the Renminbi has taken a lead over
ambitious project of “Renminbi internationalisation” with
the Rupee. A committee set up by the Department of
the coupled goals of international monetary reform and
Economic Affairs in 2013 recommended a time-bound
diversification of global currency risk through
long-term plan for the internationalisation of the Indian
internationalising its currency. Since its
rupee.
internationalization, the acceptability of Renminbi as an
international currency and its growth is phenomenal.

On account of the extraordinary growth of Renminbi,


CONCEPT OF
experts in India are suggesting internationalisation the
Indian National Rupee (INR). The Reserve Bank of India
INTERNATIONALISATION
FOCUS | March 2018 | R AU’S IAS 106
In the word of Tarapore Committee on Fuller Capital 7. The currency may be included in the “currency
Account Convertibility (CFAC) - an “international currency” baskets” of other countries, which they use in
is a currency that is widely used for international governing their own exchange rate policies.
transactions, such as the US dollar, Euro, British Pound,
Swiss Franc and Japanese Yen. As per the committee, the
“internationalisation” of a currency is an expression of its
CURRENT STATUS OF
external credibility as the economy integrates globally.
INTERNATIONALISATION OF
Chinn and Frankel (2005) developed a list of functions of
an international currency. According to them, an
international currency has to be capable of playing roles
RUPEE
of store of value, medium of exchange and unit of In the backdrop of Global financial crisis and consequent
account for both residents and non-residents. More waning of dollar and search of an alternative currency,
specifically, it can be used for private purposes, such as especially among emerging economies, and the rise of
currency substitution, trade and financial transaction, Renminbi have created a natural demand for
invoicing and denomination2 . It can also be used for the internationalization of the Rupee. More so, such
public purpose as official reserves, vehicle currency3 for demand has also occurred due to India’s strong
foreign exchange intervention and anchor currency for macroeconomic fundamentals, such as its position in
pegging4 . economic growth, the volume of trade, size of the
Peter Bain Kenen (2011) also enumerates the process of economy, integration with the world economy and high
internationalisation of a currency including the necessary forex reserve.
preconditions. They are as follows: In this context, the current status of the Indian rupee in
1. The government must remove all restrictions on regard to meeting various prerequisites for
the freedom of any entity, domestic or foreign, to internationalization is set out below:
buy or sell its country’s currency, whether in the Invoicing and settlement of trade in INR – Currency
spot or forward market. invoicing5 in trade is among the most prominent
2. Domestic firms are able to invoice some, if not all, prerequisite any national currency to become an
of their exports in their country’s currency, and international currency. In this context, international trade
foreign firms are likewise able to invoice their of India continues to be denominated in the American
exports in that country’s currency, whether to the Dollar. Local currency (LCY) invoicing of trade in the
country itself or to third countries. Rupee is less than 2.5% of total trade which is far less
than what Chinese trade is settled using the RMB.
3. Foreign firms, financial institutions, official Chinese figure stands at around 22%.
institutions and individuals are able to hold the
country’s currency and financial instruments Foreign Exchange Market turnover- India accounts for
denominated in it, in amounts that they deem a very small proportion of the total foreign exchange
useful and prudent. market turnover in the world as compared to other
countries. However, India’s share in total foreign
4. Foreign firms and financial institutions, including exchange market turnover has been slowly but
official institutions, are able to issue marketable continuously increasing. The BIS Triennial Central Bank
instruments in the country’s currency. Survey data for 2016, shows that the INR was ranked
5. The issuing country’s own financial institutions and 20th by average daily turnover, across all forex
non-financial firms are able to issue on foreign instruments. Their average daily turnover in the INR has
markets instruments denominated in their increased almost 20 times from USD 3 Billion in 2001 to
country’s own currency. USD 58 Billion in 2016.

6. International financial institutions, such as the Non-Deliverable Forward (NDF)6 markets in INR-
World Bank and regional development banks, are According to BIS triennial survey, 2016 India’s turnover
able to issue debt instruments in a country’s in the NDF market stands at 16.5 billion USD in 2016
market and to use its currency in their financial which is 16.7% higher than in 2013. Comparison with the
operations. onshore currency derivatives 7 market’s average daily
turnover of USD 17 Billion underscores the growing

FOCUS | March 2018 | R AU’S IAS 107


demand for the Rupee abroad. The highly liquid offshore include savings on foreign exchange transactions for
NDF market is a symptom of growing international Indian residents, reduced foreign exchange exposure for
interest in a currency that is not fully convertible. Indian corporate, reduction in dependence on foreign

Currency substitution8 and investment- India has a exchange reserves for the balance of payment stability

liberalised framework for foreign portfolio investment etc. One of the important drivers for internationalization
since the notification of the Foreign Institutional Investor of a currency is the country's share in global

(FII) framework in 1995. As a result of this, there has merchandise and commercial services trade.”

been a significant increase in the number of foreign Currency internationalization provides an opportunity to
investors in the country. On an average, 19-20% of reduce transaction costs and exchange rate risk with the
Indian equities are held by foreign investors at present option of settling payments in domestic currency. The
in India. By and large, the INR is actively used for larger volume of transactions and increased competition
currency substitution and investment. tend to improve institutions ‘performance and

Rupee Denominated Bonds- Liberalization of the innovation. Additionally, the evidence suggests that

external commercial borrowings (ECB) framework in internationalisation of currency helps in lowering the

2015 and 2016 allowed Indian corporate to issue INR cost of funding in the hosting countries. According to an

denominated bonds overseas. These bonds are estimate, the cost of funding in the U.S. is reduced by

commonly referred to as “Masala bonds ” 9. Experts are 50–60 basis points due to foreign demand for U.S.

arguing that Issuance of Rupee denominated bonds treasuries. Similar benefits can be expected with the

overseas is a major step in internationalizing the Rupee . internationalization of Rupee.


As of November 2016, there are 13 active Masala bonds However, it is not free from challenges as currency
listed in London Stock Exchange, raising USD 2 billion. internationalization attracts monetary and financial
Out of these 13 bonds, 10 Masala bonds have been instability in the economy. When an economy integrates
raised by multilateral organisations such as International globally, the differences in tax rates and restrictions on
Finance Corporation and remaining 3 by the Indian the use of its currency by non-residents cause
corporate. development of offshore Non-Deliverable Forward (NDF)
Usage of INR by other countries- There has been some markets for the currency. This results in reducing
unreliable evidence that Indian Rupee is accepted in monetary authority’s control over monetary aggregates
several countries such as Singapore, Malaysia, Indonesia, as well as reducing its autonomy in setting domestic
Hong Kong, Sri Lanka and the UK. The Central Bank of interest rates.
Nepal, Nepal Rastra Bank, also holds Government of It also introduces volatility in the financial markets as in
India Treasury Bills. However, India is yet to take the
the case of NDF markets non-residents hold significant
benefits of it. For example, India is not part of Asian
balances of the domestic currency, particularly at
Currency Unit. 13 major countries viz. Singapore,
offshore locations, any expectation that the country is
Malaysia, Indonesia, Thailand, the Philippines, Brunei,
vulnerable due to weak fundamentals or a contagion
Laos, Myanmar, Vietnam and Cambodia, plus China,
would lead to a sell-off resulting in a sharp fall in the
Japan and South Korea are part of this. Joining such
currency. Withdrawal of short-term funds and portfolio
union can significantly enhance Internationalisation of
investments10 by non-residents can be a major potential
Indian Currency.
risk of internationalization of the currency. This also
affects the financial system‘s ability to adequately absorb
IMPLICATIONS capital flows.

The currency internationalization has multiple benefits. Additionally, bearing to the fact in the mind that India
While giving a written reply in Loksabha regarding the unlike China has less scope due to its significant trade
benefits of internationalization of Rupee, Jayant Sinha, and current account deficits. Its capital account is still
the then Minister of State (Finance) commented in 2016 relatively not so open i.e. rupee is still not fully
“Internationalization of Rupee will facilitate a greater convertible for some capital account transactions.
degree of integration of Indian economy with rest of the Further, Internationalisation of any currency depends on
world in terms of foreign trade and international capital market forces., i.e., how much faith the market has in
flows. Key benefits of internationalization of Rupee that currency, which, in turn, depends on various factors,

FOCUS | March 2018 | R AU’S IAS 108


such as, the size of the economy, level of financial oversight, corporate governance, and resolution
development, stability, etc. Hence, on account of all schemes.
these factors, India should avoid any blind following of
Renminbi and follow the gradual but firm steps to
internationalize its currency depending upon the
CONCLUSION
strength of its macro-fundamental of its economy. While it is certain that Dollar will continue to dominate
as global reserve currency in the foreseeable future, the
WAYS TO PROMOTE emerging market currency such as Renminbi and INR
will be natural contenders for an international currency
If India wishes to promote the internationalization of its status on account of the increasing economic prowess of
currencies it needs to focus on its macroeconomic these countries and their ability to withstand the
stability, market-based monetary framework, adverse impact of the global financial crisis with
liberalization of the capital account, swap agreements relatively greater ease. The significant strength exhibited
with other countries, capacity building of its financial by the Indian rupee in the recent months and a fair
sectors and prioritizing and accelerating the reforms. performance of the Indian economy has surely placed all
the preconditions of internationalization of Indian
Creating a plausible policy framework for low and stable
Rupee. It needs to proactively take steps to increase its
inflation is the keystone for building confidence in the
presence not only in the region but also in the major
store of value properties of the national currency. A
financial markets of the world in the medium to long-
country with a sound and sustainable macroeconomic
term. Yet it should be mindful of the fact that any
framework and low inflation tend to make its economy
conversation on rupee internationalization without
more resilient and its currency more stable. Along with
structural reforms is futile. Scale, stability and liquidity
these, a more market-based monetary framework,
can be achieved through strong economic fundamentals
including market-determined interest and exchange
and a process-driven regulatory environment. These, by
rates minimizes risks to monetary stability. India needs
themselves, are important policy goals to achieve for
to orient itself towards all these policies.
India. It is highly likely that once these are accomplished,
Besides, capital account liberalization is a significant step the INR will receive the status of an international
towards the internationalization of currency. The currency.
country needs to allow foreign access to domestic
---------------------------------------------
financial markets. This requires sufficient market and
1
institutional development and adequate oversight, US Dollar, Euro, British Pound and Japanese Yen
including: i) reducing or eliminating the required 2
It means face value of Banknote and coin.
approval process for transactions as they add
3
considerable costs and risks to the end users; ii) allowing A form of legal tender used in a cross-border import or
forward delivery of the domestic currency; iii) reducing export transaction that is not the domestic money of the
various direct and indirect taxes on income and capital importer or the exporter. Many international
flows (e.g., reserves requirements, withholding taxes, transactions for goods and services use the U.S. dollar as
transaction taxes); iv) allowing/increasing the ability of the invoicing currency even if neither party is based in
foreigners to borrow in domestic currency, permitting the United States, since most national currencies trade
domestic entities to borrow in foreign currency, and actively against the Dollar in the forex market.
allowing for cross-border swap settlements between 4
Currency pegging is the idea of fixing the exchange rate
banks and between banks and end users; and v) of a currency by matching its value to the value of
allowing foreign institutions to establish banking and another single currency or to a basket of other
capital markets businesses on the same basis as currencies, or to another measure of value, such as gold
domestic entities to spur competition and innovation in or silver.
cross-border flows and products. In addition to this, the
A fixed exchange rate is usually used to stabilize the
financial sector policies need to focus on building
value of a currency, with respect to the currency or the
institutional capacity and strengthening financial system
other values it is pegged to. Pegging a currency to
another currency facilitates trade and investments

FOCUS | March 2018 | R AU’S IAS 109


between the two countries, and is especially useful for exchange. Countries using flexible exchange rates can
small economies where external trade forms a large part experience problems if there is a high rate of currency
of their GDP. Pegging is also used as a means to control substitution because they can no longer control all
inflation. currency types through monetary policy. The higher the
5 rate of currency substitution, the greater the likelihood
One role for an international currency is its role in trade
of monetary disturbances caused by changes in the
invoicing. It matters since the use of different currencies
foreign currency
in the invoicing of exports and imports play a central
role in how shocks are transmitted across countries and A country may choose to use flexible exchange rates
how one designs optimal monetary policy. rather than fixed exchange rates in order to mitigate the
effect of foreign currency fluctuations on the domestic
If exporters sets prices in their own currencies – the so-
currency and economy. An increase in the rate of
called “producer currency pricing” strategy – exchange-
currency substitution means that the domestic economy
rate movements are transmitted to consumer prices.
can fall victim to rapid changes in exchange rates, and
Exchange rate movements then facilitate efficient
thus may experience monetary increased shocks from
movements in the relative price of domestic and
both home and abroad.
imported goods, leaving monetary policy free to focus
10
on domestic shocks. This is not the case if exporters set "Masala Bonds" are the 10-year off-shore rupee bonds
prices in the currency of their customers – the so-called issued by International Finance Corporation (IFC), a
“local currency pricing” strategy. In this case, the relative member of the World Bank Group, in the international
price of domestic and imported goods is unaltered by capital market in November 2014, to raise funds for
exchange rate fluctuations and monetary policy must supporting private sector infrastructure development
strike a balance between reacting to domestic and initiatives in India. The term Masala bonds now extend
foreign shocks. to any Rupee-denominated bonds issued to overseas
6 buyers even though RBI has not resorted to the use of
NDF is a contract with a future delivery date at which it
this name in their guidelines. These are like any other
will be Cash settled based upon the difference observed
off-shore bonds, are intended for those foreign investors
between the contract rate and the prevailing rate used
who want to take exposure to Indian assets, yet
for reference. Non-deliverable forex forward contracts
constrained from doing it directly in the Indian market or
do not involve the physical exchange of currencies.
prefer to do so from their offshore locations. The
Investors who buy assets in emerging markets use them
settlement of the bonds will be in US dollars but since
to hedge the currency risks posed by their investments.
they are pegged to the Indian currency -rupee-, investors
7
A currency derivative, also known as FX future, is a will directly take the currency risk or exchange rate risks.
futures contract to exchange one currency for another at The settlement is done in US dollars because of the
a specified date in the future at a price (exchange rate) limited convertibility of rupee.
that is fixed on the purchase date. On National Stock
These Masala bonds are also an attempt to shied issuers
Exchange the price of a futures contract is in terms of
from currency risk and instead transfer the risk to
INR per unit of other currency e.g. US Dollars. Currency
investor buying these bonds. The currency risk is borne
derivative contracts allow investors to hedge against
by the investor and hence, during repayment of bond
foreign exchange risk. Currency Derivatives are available
coupon and maturity amount, if the Rupee depreciates,
in four currency pairs viz. US Dollars (USD), Euro (EUR),
RBI will realize a marginal saving.
Great Britain Pound (GBP) and Japanese Yen (JPY).
11
9 Portfolio investment is defined as cross-border
The use of a foreign currency in transactions in place of
transactions and positions involving equity or debt
the domestic currency is known as currency substitution.
securities, other than those included in direct investment
The foreign currency thus serves as a medium of
or reserve assets.

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UNDERSTANDING EUTHANASIA
#Polity and Society
NAWEED AKHTER, EDITORIAL TEAM
& EDUCATOR: DAILY NEWS SIMPLIFIED

mind, leaves written instructions on the sort of medical


Right to Life or Death treatment that may or may not be administered in the
event of them reaching a stage of terminal illness.
Article 21 of the Indian Constitution which deals with
protection of life and personal liberty has gone through
successive interpretations by the Courts of law in
Euthanasia and its kinds
important landmark judgments. Each of these
Oxford dictionary meaning of euthanasia is painless
interpretations has widened the ambit of Article 21 to
killing of a patient suffering from an incurable and
include such facets of life which provides meaning,
painful disease or in an irreversible coma. Euthanasia is
purpose and dignity to existence. Article 21 specifically
also referred as mercy killing or Physician Assisted
says that no person shall be deprived of their life or
Suicide (PAS) and it can be described as bringing about
personal liberty except according to procedure
of the gentle death of a patient suffering from painful,
established by law. The word liberty is the sense and
chronic and incurable disease. There is a distinction
realization of choice of the attributes associated with the
between euthanasia and physician assisted suicide. The
said choice and the term life is the aspiration to possess
difference lies in the fact as to who administers the
the same in a dignified manner. The two are intrinsically
lethal medication. It has been observed that in
interlinked. Liberty allows an individual the space to
euthanasia, a physician or third party administers it
think and act without restriction and life without liberty
while in physician assisted suicide, it is the patient who
would be a meaningless survival. Thus, Article 21 in its
does it though on the advice of the doctor.
own unique way has combined the concept of life and
liberty and has also linked it through a legal procedure Euthanasia is basically an intentional premature
for its deprivation. It was because of this interpretation, termination of another person‘s life either by direct
right to die was never interpreted in successive intervention (active euthanasia) or by withholding life-
judgments to be an integral part of right to life and prolonging measures and resources (passive
personal liberty under Article 21. euthanasia). This can be done by express or implied
request of the person concerned (voluntary euthanasia)
However, Supreme Court in a landmark judgment the
or in the absence of such approval or consent of the
case of Common Cause v. Union of India and Another in
person concerned (non-voluntary euthanasia). Active
March 2018, has laid down broad legal framework to
euthanasia also referred as positive or aggressive
protect the dignity of a terminally ill patient or those in
euthanasia, occurs when death is brought about through
Persistent Vegetative State (PVS) with no hope of cure or
a positive act or affirmative action or an act of
recovery and in the process has allowed 1. Passive
commission entailing the use of lethal substances or
Euthanasia 2. Right to give Advance Medical Directives or
forces to cause the intentional death of a person by
a valid ‘Living Wills’ to smoothen the dying process as a
direct intervention (lethal injection given to a person
part of fundamental right to live with dignity. The case of
with terminal cancer who is in terrible agony).
passive euthanasia was earlier recognised by a Two-
Judge Bench in the case of Aruna Shanbaug in 2011. Passive euthanasia, on the other hand, also called
Now the Constitution Bench in Common Cause case has negative or non-aggressive euthanasia, entails
expanded the scope of euthanasia by adding to it the withdrawing of life support measures or withholding of
principle of a ‘living will’, or an advance directive, a medical treatment for continuance of life. Eg.
practice where a person while in a competent state of Withholding of antibiotics in case of a patient where

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death is likely to occur as a result of not giving the said Thus, the Supreme Court in P. Rathinam v. Union of
antibiotics or removal of the heart lung machine from a India & Another ruled that right to life embodied in
patient in coma. Passive Euthanasia is further Article 21 also embodied in it a right not to live a forced
categorized into voluntary passive euthanasia and non- life, to his detriment, disadvantage or disliking. Supreme
voluntary passive euthanasia. Voluntary passive Court further declared Section 309 IPC (criminalises
euthanasia is a situation where a person who is capable attempt to suicide) ultra vires as it violated Article 21.
of deciding for himself decides that he would prefer to The Court emphasised that attempt to suicide required
die because of various reasons whereas non voluntary medical help and not punishment and held that it
passive euthanasia has been described to mean where a deserved to be removed from the statute book to
person is not in a position to decide for himself (when humanize the penal laws in India.
they are in coma or in Persistent Vegetative State)
Gian Kaur vs. State of Punjab (1996)
Supreme Courts across the world including Canada,
The ruling of P. Rathinam v. Union of India & Another
United States of America, United Kingdom, Netherlands,
was challenged in the case of Gian Kaur vs. State of
Switzerland, Belgium, Spain, Austria, Italy, Germany and
Punjab. The question arose that if attempt to commit
France has viewed distinction between active and
suicide was declared void and unconstitutional, then
passive euthanasia through the prism of intention where
how can abetment to commit suicide (section 306 IPC)
such an act leads to hastening of death. Thus, the
could be considered as a punishable offence. A five
jurisprudence evolved on passive euthanasia throughout
Judge Constitutional Bench held that the "right to life" is
the world has common thread and has gained moral
inherently inconsistent with the "right to die" as is
and legal sanctity for its acceptance in some form or the
"death" with "life". In furtherance, the right to life, which
other. However, same cannot be said about active
includes right to live with human dignity, would mean
euthanasia and there remains uncertainty about
the existence of such a right up to the natural end of life.
granting legal sanction for its approval. Let us
The Court further said that right to life is a natural right
understand the concept of right to life, right to die,
embodied under Article 21 but suicide is an unnatural
suicide and euthanasia through successive judgments of
termination or extinguishing of life and is therefore
Supreme Court of India.
incompatible and inconsistent with the concept of right
P. Rathinam v. Union of India & Another (1994) to life. The Court therefore held Section 306 (abetment
of suicide) and 309 (attempt to suicide) of IPC to be valid
In India attempts have been made to include right to die
and constitutional. Thus, Gian Kaur vs. State of Punjab
within the concept of right to life and personal liberty
effectively overruled the previous judgment of P.
which is one of the most interpreted Fundamental Right
Ratinam v. Union of India and declared that right to die
in the Constitution. In P. Rathinam v. Union of India &
does not form part of Article 21.
Another, many constitutional issues were raised
including questions pertaining to constitutional validity In Gian Kaur, Supreme Court further distinguished
of attempt to suicide (section 309 of Indian Penal Code) between euthanasia and attempt to suicide. The Court
and right to die. While referring the question whether observed that right to life including the right to live with
right to die can be included as an integral part of Article human dignity would mean the existence of such a right
21, the Court relied on the case of Maruti Shripati Dubal up to the end of natural life. Whereas euthanasia is
v. State of Maharashtra, where Bombay High Court held termination of life of a person who is terminally ill or in
that fundamental rights have their positive as well as PVS. Thus, euthanasia is not a case of “extinguishing
negative aspects. Citing an example, it had stated, life”but only of accelerating the process of natural death
“freedom of speech and expression includes freedom which has already commenced. However, the Court held
not to speak and similarly, the freedom of association that permitting termination of life in such cases to
and movement includes freedom not to join any reduce the period of suffering during the process of
association or move anywhere and accordingly, it stated certain natural death cannot be included under Article
that logically it must follow that the right to live would 21 as it amounts to curtailing natural span of life. Thus,
include the right not to live, i.e., right to die or to the Court held that the "right to live with human dignity"
terminate one‘s life.” cannot be construed to include within its ambit the right
to terminate natural life, at least before the

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commencement of the process of certain natural death. includes right to die with dignity. Dignity is lost if a
Thus, the Court did not allow passive euthanasia as it person is allowed or forced to undergo pain and
terminated natural life. suffering because of unwarranted medical support. To
deprive a person of dignity at the end of life is to deprive
Aruna Shanbaug (2011)
him of a meaningful existence. Meaningful existence
The controversy related to attempt to suicide and includes a person’s right to self-determination and
abetment of suicide was decided but the issue of autonomy to decide their medical treatment. The
euthanasia still remained. Aruna Shanbaug suffered respect for an individual human being and in particular
brain stem and cervical cord injury and remained in for his right to choose how he should live his own life is
Persistent Vegetative State for the rest of her life since individual autonomy or the right of self- determination.
1973 till her death in 2015. In 2009, a writ petition was It is the right against non-interference by others, which
filed under Article 32 before the Supreme Court of India, gives a competent person who has come of age the right
seeking passive euthanasia for Shanbaug. The Court to make decisions concerning his or her own life and
appointed a team of three very distinguished doctors to body without any control or interference of others.
examine the petitioner thoroughly and to submit a
In the context of health and medical care decisions, a
report about her physical and mental condition. The
person's exercise of self-determination and autonomy
team submitted a joint report. In a landmark judgment
involves the exercise of his right to decide whether and
in 2011, the Court held, “there is no right to die under
to what extent they are willing to submit themself to
Article 21 of the Constitution and the right to life
medical procedures and treatments, choosing amongst
includes the right to live with human dignity but in the
the available alternative treatments or, for that matter,
case of a dying person who is terminally ill or in
opting for no treatment at all which, as per their own
permanent vegetative state, he may be allowed a understanding, is in consonance with their own
premature extinction of his life and it would not amount individual aspirations and values. The Court also agreed
to a crime. ”Supreme Court allowed doctors at the KEM that right to a dignified life includes a “dignified
Hospital in Mumbai to stop force-feeding Shanbaug and procedure of death.” SC distinguished passive euthanasia
withdraw life support to deliberately end her life, on the from suicide and active euthanasia and drew a judicial
discretion of the doctors. Thus, Supreme Court allowed line between the two as it called passive euthanasia as a
withdrawal of life-sustaining treatment from patients not “mere acceleration of the inevitable conclusion” whereas
in a position to make informed decision. This was the it declared active euthanasia as unlawful and illegal.
first time after Gian Kaur case, when Supreme Court had Suicide involves “overt acts” which culminates in an
allowed passive euthanasia under strict guidelines and unnatural death. Supreme Court has invoked its inherent
conditions. However, Supreme Court did not allow active power under Article 142 to grant legal status to its
euthanasia and held that ending life through use of advance directives until Parliament enacts legislation on
lethal substance' is not permitted in any circumstance. the matter. This is a landmark judgment as it departs
from previous judgments on the concept of including
Common Cause v. Union of India and Another (2018) right to die with dignity within the larger ambit of Right to
Supreme Court in common cause case has held that live under Article 21.
fundamental right to life and dignity under Article 21

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lEAD ESSAYS

DREAMS WHICH SHOULD NOT LET INDIA SLEEP


VAISHNAVI TIWARI (WW-1 BATCH)

Constitution, itself, clearly presents the core values of


“One has to dream, before their dreams can come
India, in an explicit fashion.
true.” - Shri APJ Abdul Kalam

It’s self-evident that the above line aptly captures the true We, The People of India, having solemnly resolved to
essence of performing the act of dreaming and constitute India into a Sovereign, Socialist, Secular,
envisioning about one’s ambitions. It’s a time-tested Democratic, Republic and to guarantee to all its citizens.
principle – man started dreaming right from the age he Justice, Social, Economic and Political;
kick-started the civilization process. Since times
Liberty, of thought, expression, belief, faith and Worship;
immemorial to this date, contexts have changed, but the
significance of dreams in every success story hasn’t Equality, of status and opportunity; and to promote
diminished, and that it’s testimonized by the very fact among them all.
that dreams form a quintessential ingredient of every
Fraternity, assuring dignity of individuals and unity and
fable that talks of people conquering unfathomable
integrity of the nation.
heights.
In our Constituent Assembly, this 26th day of November
Also it’s a fact well established that the goods and
1949, do hereby ADOPT, ENACT and give to ourselves this
dreams of the nation, itself is shaped and carved by the
Constitution.
individuals it comprises of: after all, individuals are the
basic unit of a society and an aggregation of societies
collaborates to be called together as a Nation. To decipher the latest meaning of the highlighted terms
Undoubtedly, and quite similarly though, India has its of the Preamble, is a no lawyer’s paradise only. It has
own set of aspirations, as diverse and as holistic as its been meant for every citizen of the country. These goals
vast geographical presence and myriad cultural colours, had already been identified by our forefathers, who
as serve as its spiritual richness, as passionate as its shaped the destiny of the country. To continue being a
population and as great as its historical riches. There are sovereign and a truly independent nation, promoting
‘visions’ and not dreams of creating the foundation of a welfare measures for the masses, paying equal respect
new India, as dreams might become feeble over time, but and tolerance for a mutual and harmonious co-existence
it’s visions that are concertized by the virtue of sheer of all religions, valuing democracy to its core and
commitments and efficient, meticulous planning. There recognizing the powers of the citizens in farming the
are visions of creating a new order, Visions of creating government – are some of the fundamental and rock-
our “Sapnon Ka Bharat”. hard aspiration of India as a country.
Such were the visions envisaged by the founding fathers Citizens have always been the ‘MAGNA CARTA’ of India’s
of the country, where they clearly laid down ever aspiration. Thus, guaranteeing precious political virtues
cherished principles for the future generations to be as inalienable as justice, liberty, equality, fundamental
attained, in order to create the India that stands out from rights and promotion of fraternity, has been given a top-
the rest. The holy book of the religion of nationalism, the notch priority to the Dream-List of the Country.
Constitution of India, itself serves as a torch-bearer for
the mandarins and citizens of the country to realize these However, linking the dots with prudence and
socio-economic-political aspirations. The preamble of the pragmatism, it’s high-time that India looks forward to
revolutionize its existing approaches and targets, in all

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spheres and realms. We are in the 21st century, one of ambitions, and thus needs to reflect the same
the radical periods of all times, witnessing double-paced commitment. There has to be a gradual transition from
growth and a huge bag filled with challenges and India being an agrarian economy to an industrial power,
opportunities alike. It is in these circumstances that we a thriving centre for employment opportunities, a hub for
have to establish a firm of India being a world leader; and entrepreneurship, innovation and intellect, an economy
thus, it’s in this context that it’s imperative to revise our synergising sustainability with efficiency in the most
goals, which requires sheer resoluteness and a firm optimum fashion, A country committing to Zero Defect
vision in our hearts and mind. From a social angle, we (Professional Competency Efficiency) + Zero Effect
need to eater to the masses. Critiques say over (Environment Sustainability).
population is a humongous challenge for the country, but
Coming back to the real world, there exists a chasm
optimists declare the same as a prospective opportunity.
between the primary and the secondary sector which
Thus, with such a mammoth population, it’s urgent to
deepens the existing ‘BHARAT-INDIA’ divide. In such
plan and implement strategies that works the best
context, agrarian reforms are sectors requiring dynamic
towards this direction and plays an integral role in
immediacy. Saying adherence to our former PM, Lal
maximizing the potential of our human capital, which
Bahadur Shastri, wherein he saluted the hardships of the
stands under-utilized till date. This requires a robust
farmers by winning ‘Jai Jawan, Jai Kisan’ we need to
growth in the social infrastructure set up, mechanisms to
introduce sustainable agricultural reforms that ensures
ensure a well-educated and a healthy life to all.
food security along-with securing the producer
Improvisations in availability, accessibility and feasibility
efficiently. Also, it’s the need of hour to link science with
of health care facilities and educational services form the
agriculture and thus focussing on aggravating the
core of the same. Allied factors as clean drinking water
potential of the production process as well as doubling
and a sound situation of sanitation, also plays a critical
the farmer’s income – something that finds an explicit
role. The existing government’s plan of National Health
mention in the present day’s government agenda.
Protection Scheme and the flagship programmes like
Sarva Shiksha Abhiyan, are adequate steps in the same Economy has to be revitalized with technology and the e-
direction. It’s prudent to recognize the fact that health conversion of existing economic schemes and provisions,
and education are the basic prerequisites for will certainly yield a positive impact on the country as a
development of the human capabilities and enlarging whole. Pressing for greater digitalization and cashless
their progress – hence, needless to mention, these areas transactions, is a suitable measure to check leakages and
will always be prioritized over the rest. discrepancies in the process, thus saving the drainage of
millions of resources from the national exchequer.
Talking about social setups and access to resources, one
Strengthening of banking system by introducing various
of the key beneficiaries that needs urgent attention, but
measures as recapitalization, insolvency and Bankruptcy
unfortunately, faces utter neglect – are the WOMEN, the
code, DBT (Direct Banking Transfers) to farmer is a
FEMALE FORCE. Though we have been successful in
satisfactory action towards the same. Ultimately, all of it
accelerating our growth rates, we have still no managed
has to be equitable in nature, thus increasing the
to cope up with our parochial outlook and let women go
necessity of emphasizing upon ‘Financial Inclusion’ as a
out of their traditional roles, thus limiting their exposure
critical element in the entire process of economic
to and participation in the development and decision
rejuvenation.
making process. Achieving greater gender – equity and
restoring gender imbalances, with an equal emphasis on Entering the global leadership can’t be attained without
providing equitable opportunities to women, ensuring achieving strides in the realm of scientific innovation and
their security – stands as an unquestionable target to be technology. Technological upgradation, sustainable
achieved by India, in the coming direction. automation and Research and Development in Science
and Allied fields – have to be some of the key indicator to
As we kick-start our voyage towards becoming an
track India’s progress in the field. It’s crucial to link
influential global force. It’s high time that we gradually
science with the masses in order to get the best out of it.
more from traditional ‘Roti, Kapda, Makaan, Paani, Bijli’
Scientific intervention in medicines for finding cure of
rhetoric. As a nation that intends to develop as a global
deadly problems and technological betterment in areas
power, we need to empower the citizens, both
as disaster forecasting, telecommunications etc.,
economically and socially. We need to more from
acquires a necessary nature. Also, the emphasis will be
‘SUSTAINANCE TO SUSTAINABILITY’. Our economic
on ‘Maximum innovation with minimum destruction’,
agenda must be in consonance with our geo-political

FOCUS | March 2018 | R AU’S IAS 115


thereby making unconventional energy usage important However, aspirations are to be seen with open eyes. It
for development. It’s a need to shift from gaining ‘Nuclear has to be different from fantasies, and grounded in the
Capabilities to Human Capabilities’ with Science, so as to idea of reality. It has to be supported by actions and truly
establish an ideal society that uses its technology as a unshakable determination to achieve the same.
tool for human betterment and progress.
Our ancient scriptures also reiterate the same: (It takes
Curbing corruption, enhancing accountability and sweat and actions to realize aspirations and not merely
transparency, promoting female participation in politics dreams, just like the way a sleeping lion can’t get a deer
and decision-making. Checking on red-tapeism, fastening right away near him, only because he dreams it.)
speedy judicial system and an efficient policing
Ours, being a nation, guided by our rich, enlightening
mechanism – are some of the existing goals in our list
past, it becomes essential on our part to lay down clear
that needs immediate attention and action for the
plans to fulfil our vision and turn it into reality. This will
development of the public-political order in the country.
require tapping the potentialities of the youth and
Since India lives in Villages, its highly essential to ensure a channelizing it towards constructive forces and a resolute
mechanism where the benefits of the top-notch commitment by all people, form all status of the society.
decisions finds a penetration into the grassroots. The We need to evolve a coherent and firm partnership
fulfilling of the above-mentioned aspirations will be a between major stakeholders and prospective
major solution. Provider to solve this conundrum as well, beneficiaries in rider to accelerate our development
and faster rural development, in the walk of creating pace. Narrow prejudices needs to be kept aside before
‘SMART CITIES’, wherein it becomes even more important national interest.
to consider the metamorphosis of rural dwellings as
‘Nation first, Self-Last’ has to be the over-arching principle
‘SMART CITY’ agenda, by reducing the scale and
and ever-green mantra before kick-starting this
frequency of rural to urban migration forces.
mammoth exercise. There has to be a leap, a giant leap
Standing at eh threshold of being ‘DEVELOPED’ from a to acquire a ‘DEVELOPED NATION’ status. We, as Indians,
‘DEVELOPING’ nation, it becomes imperative to need to dream of such visions that doesn’t let us sleep
contextualize our visions for NEW INDIA, from the and rest, we need to be awake to set an example for the
perspective of the international angle. Strategic world to follow, we, as Indians need to prove our mettle,
leadership and strengthening of diplomatic ties with while the world was sleeping, our forefathers were awake
game changer nations, has to have a definite place in our at the stroke of the midnight hour on 15th August, 1947
list. This has to be done for seeking international to make a ‘Tryst with Destiny’. A similar episode has to
cooperation and attempting to be an influential force in repeat itself where we, as 125 crore Indians, make a ‘tryst
terms of tackling global issues as terrorism, cyber- with Excellence’ where we stand unified as a global
crimes, climate change and health epidemics. This would democratic leader, achieving incomparable strides
also mean a firm step towards attempting to attain a through our massive human potential, coupled with
permanent seat in the UN Security Council, and thus cultural and social solidarity of thought.
attaining a permanent membership and legitimate
This has to be a dream, as big as our nation, which does
authority and responsibility to shape the new
not allow us to sleep, owing to its ‘leviathan’ nature.
international order.

VASU MOHAN (WW-1 BATCH)

Those who fought for our Independence, wanted this not let it go. As rightly said by the former president,
country to a place for their young and upcoming missile man of India, and above all a great inspiration, Dr.
generations to dwell and prosper. They sacrificed APJ Abdul Kalam.
themselves just because they wanted us to aspire and
Dreams are not those, which we see while sleeping.
dream in free country. They also gave us various means
and thoughts in the name of our great constitution to Dreams are those which should not let us sleep.
make INDIA not just a country but a dreamland. We have By these guiding words, we as citizens of this country
given this chance to dream with freedom and we should along with our chosen representatives should also aspire

FOCUS | March 2018 | R AU’S IAS 116


and dream for a NEW INDIA. Thanks to the democratic support our dream of economic equality and financial
structure of our country. We have certain dreams with us inclusion of all. Our most prominent dream should be
to fulfil. the strengthening of Banking and Credit Sector. We can
achieve it through banking reforms, such as
By looking at new opportunities and with the guidance of
recapitalisation and relaxing the norms for registration of
our constitution. We should dream to make INDIA, a
new banks. Poverty is the main concern for India since
noble place. We have to touch each and every aspect
the time of Independence. We should aspire to eradicate
present in our country to enhance it. Our apex dream,
extreme poverty through effective implementation of
for everyone there should be the service to the nation
schemes such as MGNREGA, Jan Dhan Yojana, Sarva
and not to anybody. The wide horizon of our dreams
Shiksha Abhiyaan, Skill India etc. We should also dream
should cover: Political, Economical, Developmental, Geo-
for a digitised economy to curb problems such as parallel
Political, Technological, Social and equilateral. We must
economy, Black money etc. The dream of digitisation is
ensure through our dreams that the slogan given by our
very much achievable through Digital India Campaign
former Prime Minister, Sh. Lal Bahadur Shastri, “Jai
and Mudra Yojana.
Jawaan, Jai Kisaan” must not go in vain. We must strive
for a robust agricultural sector. Now a days globally, development is given more
important over mere growth. A citizen of any country
We are called the largest democracy of the world. That is
must live his life with peace and prosperity. Human well-
why our political and democratic dreams must be of the
being should be a major priority among our
top notch level. We must dream to preserve and enhance
developmental dreams. No country can be a dreamland
our beautiful cooperative federal structure, where states
if its citizens are not healthy enough. As well said that
and centre synchronising by work for the development.
“Health is Wealth”, we must aspire to enhance our health
Our dream in the political arena should be of achieving
facilities not just at the basic level but at the advance.
decent realised planning and Implementation. We must
Technology missions for health can be used to achieve
not have a political structure in which the blueprint for
this dream.
development of Assam is prepared in a chamber in New
Delhi. We must dream to have a robust electoral Recently, India’s growth is referred to as jobless growth.
structure having features of enhanced accountability and Young and energetic graduates/post graduates are
transparency. Often, the topic of distribution of power waiting for vacancies. If we want to achieve our dream of
and functions among all the 3 organs of the government NEW INDIA, first we will have to generate employment
remain in limelight for the wrong reasons. We must opportunities. As rightly said that “Development and
dream of a system in which these organs will work Empowerment , goes hand in hand.” We must dream to
synchronisingly for speedy development. Executive empower our women and vulnerable sections for an
should dream of effective implementation. Judiciary integrated nation making. Government initiatives such as
should dream for transparency and speedy justice, and skill India, Beti Bachaao, Beti Padhao and online portals
legislation should aspire for Imperative laws and such as NARI are the means of fulfilment of these
provisions. Our apex dream should be of the dreams.
conservation of our constitution and fundamental rights
India is an agrarian economy. But one of the most
of everyone.
disappointing figures reveal that agriculture sector
Economically, India is debated to be the fastest growing contributes mere 16% to our GDP. The state of
economy of the world. According to a recent report, by agriculture in India’s is indeed in an alarming condition.
2030 India will be among top 3 economies of the world. We must conserve our heritage pillars such as agriculture
We should dream to be more ambitious and cut short and Ayurveda, that made us what we are today. We are
this target to 2025. Our GDP is growing a very prominent again in an urgent need for green revolution-2. We must
and comparative level among all developing and dream of an agrarian society where no farmer is
developed nations. We should dream to support our GDP ashamed of his status and livelihood. Financial support
growth through bilateral or multinational trade and and backup for the farmers is the need of the moment.
exports. We must dream for agrarian technology, status
projection of farming and encouragement of his noble
Recently, India celebrated 25 years of collaboration with
occupation. Pradhan Mantri Krishi Bima Yojana (PMKBY)
ASEAN where we pledged for enhanced commerce,
can be used as means to this destination.
connectivity and maritime security. We should get
involved with such multiple multilateral groupings to

FOCUS | March 2018 | R AU’S IAS 117


We must also strive for a robust food security system. To for an overall technical development of the country.
achieve this very dream, tight cheeks on the ongoing Projects such as “Bullet Train” and “LIGO” must be our
public distribution system must be ensured. We should top notch priority.
dream of an exemplary rural society where nobody
We should also be very concerned towards climate
wants to migrate. Instead of smart towns or smart cities,
change in our dream list. Loss of ecology and bio-
we must dream to bless the rural with smart villages. The
diversity must be addressed immediately. By increasing
quality of rural livelihood must be enhanced with
the number and efficiency of organisation such as
effective reforms in the current Panchayati Raj System.
National Green Tribunals, we can give our centre to the
By increasing and empowering the efficiency and
fulfilment of this dream.
provisions of the district administration, we can fulfil this
dream. Concluding my thoughts, we must dream to encourage
the thoughts of visionary leaders. Gifted to us by the
In the geo-political arena, India is emerging with an
constitution o India, we must dream to enhance our
appreciable rate. Today we are a part of most of the
current state of liberty, e quality, fraternity and
International groupings and conventions. Our dreams in
sovereignty.
this aspect is not to be a super power but to be a world
power and provider. We must actively proceed for our Yes, undoubtedly there are challenges, but again I will
dreams like, a permanent seat in the UN Security Council quote Mr. APJ Abdul Kalaam that,
and permanent membership among nuclear suppliers To shine like a Sun,
group. Our dream should be an exporting country rather
than an importing country. FDI regulations will be helpful You first have to burn like it.
for us in this context. We must become a country which With the same thought of nation service, we should
presents an ideal example of a dreamland. We can fulfil unitedly dream to leave “No Stone Unturned” in this
this dream with advance diplomacy and robust bilateral nation building.
relations.

We must also look forward at strengthening our security


both at the internal and external level. By empowering
our defence forces with advanced governance, mailing
and technology, we can fulfil this dream. Before having
an “Act East” Policy at the global level, we must have an
“act east, north”, policy at the domestic level.

We must strive for a well-developed society having


features of : equality among all before law act, dignity,
abolished practices of casteism, populism, racism,
regionalism and communalism, promoted secular
thought and respect for every citizen.

“DESTINY OF A COUNTRY IS SHAPED IN ITS


CLASSROOMS.”

As rightly said, to fulfil any dream our first step must be


towards education. Without education there is literally
nothing in the world. We must not dream for just basic
literacy but we must aspire to create educational
intellects, leaders in our country. Using social sector
initiative such as “Sarva Shiksha Abhiyaan”, “Right to
Education”, “Mid-day Meal Scheme”, “Ladli Yojana”, etc.
we on the first hand should introduce educational
reforms.

Technological development is one such sphere which an


aspiring country like India can never afford to neglect. We
must increase our technical assets such as ISRO, IIT’s, etc.

FOCUS | March 2018 | R AU’S IAS 118


Part Three

practiCe
ZONE
mcqs . descriptive questions .
questions based on editorials
Here are given 50 Multiple Choice Questions (MCQs)
Multiple Choice Questions for self-practice. These questions have been framed
from this issue itself. So, a reader is expected to
(MCQs) for prelims gs paper i attempt the questions, and also refer to the Answer
Key given after the MCQs. These are helpful for General
Studies- Paper I (Preliminary Examination).

1. River Prachi is the tributary of which of the 6. The battle of Samugarh was fought between
following rivers? (a) Aurangzeb and Dara Shukoh
(a) Sutlej (b) Narmada (b) Shahjahan and Chand Bibi
(c) Tapti (d) Mahanadi (c) Akbar and Rana Pratap Singh
(d) Jahangir and Sher Shah
2. Consider the following statements:
1. Shravanabelagola is a Jain pilgrimage centre 7. Majma-ul-Bahrain was written by
located in Kerala. (a) ZiyauddinBarani
2. Gommateshwara Statue is located on the (b) Firoz Shah Tughlaq
Vindyagiri Hill.
(c) Dara Shukoh
Which of the statements given above is/are
(d) AbulFazal
correct?
(a) 1 only (b) 2 only
8. Khajuraho Temple complex is located in
(c) Both 1 and 2 (d) Neither 1 nor 2
which of the following ranges?
(a) Satpura range (b) Vindhya range
3. Prachi Valley Civilisation (predating both
(c) Harishchandra range (d) Mahadev Hills
Harappa and Mohenjo-Daro) was located in
which of the following states?
9. Consider the following statements:
(a) Odisha (b) West Bengal
1. Khajurahotemples were made of sandstone.
(c) Himachal Pradesh (d) Madhya Pradesh
2. Panchayatan style of temple making was
followed in Khajuraho temples.
4. Consider the following statements:
Which of the statements given above is/are
1. Mullah Shah Badakhshi was the spiritual
correct?
mentor of Dara Shukoh.
(a) 1 only (b) 2 only
2. He belonged to the Qadiri order of Sufism.
(c) Both 1 and 2 (d) Neither 1 nor 2
Which of the statements given above is/are
correct?
10. Khajuraho temples are dedicated to
(a) 1 only (b) 2 only
1. Saivism
(c) Both 1 and 2 (d) Neither 1 nor 2
2. Jainism
Select the correct answer using the code given
5. Kortallayar river basin, related to
below:
Palaeolithic culture, is situated near
(a) 1 only (b) 2 only
(a) Mumbai (b) Chennai
(c) Both 1 and 2 (d) Neither 1 nor 2
(c) Kolkata (d) Hyderabad

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11. Assumption Island, which was recently in 17. ‘World against Violence and Extremism’ was
the news, is located in which of the recently in the news with regard to which of
following countries? the following countries?
(a) Qatar (a) Canada (b) Israel
(b) Seychelles (c) UAE (d) Iran
(c) Maldives
(d) Oman 18. Logistics Exchange Memorandum of
Agreement (LEMOA) was signed between
12. Duqm Island is located near the coast of India and which of the following countries?
which of the following? (a) United States (b) Brazil
(a) Arabian Sea (c) Sri Lanka (d) Myanmar
(b) Mediterranean Sea
(c) South China Sea 19. Which of the following are members to the
(d) Gulf of Munnar Ashgabat Agreement?
1. India

13. Global Skills Strategy program intends to aid 2. Iran


Indian workers in which of the following 3. Oman
country? Select from the codes given below:
(a) France (b) Oman (a) 1 and 2 (b) 1 and 3
(c) Canada (d) Iran (c) 2 and 3 (d) 1, 2 and 3

14. The PyeongChang Winter Olympics game 20. Operation Cactus was a military operation
was held in which of the following conducted by India in which of the following
countries? countries?
(a) South Korea (a) Sri Lanka (b) Bangladesh
(b) Japan (c) Maldives (d) Pakistan
(c) China
(d) Indonesia 21. In the context of ‘Fugitive Economics
Offenders Bill’, consider the following
15. A robot named Sophia has been granted statements:
citizenship of which of the following 1. The Bill aims to stop economic offenders who
countries? leave the country to avoid due process.
(a) Saudi Arabia (b) Qatar 2. Offences involving amounts of Rs 100 crore or
(c) Iran (d) Egypt more fall under the purview of this law.
Which of the statements given above is/are
correct?
16. ‘Grey Listing’ and ‘Black Listing’ recently in
the news are with regard to which of the (a) 1 only
following international organisations? (b) 2 only
(a) Nuclear Suppliers Group (c) Both 1 and 2
(b) Financial Action Task Force (d) Neither 1 nor 2
(c) Australia Group
(d) World Trade Organisation

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22. Consider the following statements regarding (d) None of the above
the recently approved ‘National Financial
Reporting Authority’ (NFRA): 25. Which of the following aspects of corruption
1. The Companies Act, 2013 gives the Centre the are covered under Corruption Perception
power to set up such an authority. Index (CPI)?
2. It will replace the Institute of Chartered 1. Bribery
Accountants of India (ICAI). 2. Diversion of public funds
Which of the statements given above is/are 3. Tax frauds
correct?
4. Money laundering
(a) 1 only
Select the correct answer using the code given
(b) 2 only below:
(c) Both 1 and 2 (a) 1 and 2 (b) 2 and 3
(d) Neither 1 nor 2 (c) 2 and 4 (d) 3 and 4

23. Which of the statements is correct regarding 26. North-East’s first ‘Centre for Agriculture’ has
the Institute of Chartered Accountants of been established in which of the following
India (ICAI)? states?
1. The Institute of Chartered Accountants of India (a) Mizoram
(ICAI) is a statutory body established by an Act
(b) Manipur
of Parliament.
(c) Arunachal Pradesh
2. It functions under the administrative control of
(d) Assam
the Ministry of Finance.
Select the correct answer using the code given
27. Consider the following statements:
below:
1. The NSSF is administered by the Government of
(a) 1 only
India, Ministry of Finance under National Small
(b) 2 only
Savings Fund Rules, 2001.
(c) Both 1 and 2
2. Funds collected under SSS are the liabilities of
(d) Neither 1 nor 2
the Union Government accounted for in the
Public Accounts of India.
24. Consider the following statements regarding Which of the statements given above is/are
Corruption Perception Index-2017: correct?
1. India has been ranked worse than Pakistan and (a) 1 only
Bangladesh in this index.
(b) 2 only
2. India’s performance is worst among BRICS
(c) Both 1 and 2
countries.
(d) Neither 1 nor 2
3. The index is released by Transparency
International, which is an arm of United
28. Which of the following is/are the small
Nations.
saving scheme(s) of the Central
Which of the statements given above is/are
Government?
correct?
1. Post-Office Savings Account
(a) 1 only
2. Public Provident Fund
(b) 1, 2 and 3
3. Sukanya Samriddhi Account
(c) 2 and 3

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Select the correct answer using the code given 1. It works under the Ministry of Finance.
below: 2. It is an autonomous, multipartite, non-profit
(a) 1 only (b) 1 and 2 organization with equal representation from
(c) 2 only (d) 1, 2 and 3 employers’ & workers’ organizations and
Government.

29. The Central Cabinet approved the 3. It is a constituent of the Tokyo-based Asian
methodology for auction of coal mines / Productivity Organisation (APO) of which the
blocks for sale of coal under the Government of India is a founder member.

1. Coal Mines (Special Provisions) Act, 2015 Which of the statements given above is/are
correct?
2. Mines and Minerals (Development and
Regulation) Act, 1957 (a) 1 and 2 (b) 2 and 3

Which of the statements given above is/are (c) 2 only (d) 1, 2 and 3
correct?
(a) 1 only 32. Consider the following statements about
(b) 2 only The Arbitration and Conciliation
(Amendment) Bill, 2018:
(c) Both 1 and 2
1. It provides for the establishment of Arbitration
(d) Neither 1 nor 2
Council of India (ACI)
2. It provides for grading of arbitral institution and
30. Which of the following pairs is/are correctly
accrediting of arbitrators
matched?
3. The Chairperson of ACI shall not be a Judge of
Term Description
the High Court
It is a bank gaurantee that Which of the statements given above is/are
allows the customer to raise
correct?
SWIFT money from another bank's
foreign branch in the form of a (a) 1 and 3 (b) 2 and 3
short-term loan. (c) 1 and 2 (d) 1, 2 and 3
It is a messaging network for
Letter of securely transmitting instruction 33. Which of the following Conventions are
Undertaking of all financial transactions
related to International Arbitration?
(LoU) through a standardised system
of codes. 1. New York Convention

Banks maintain foreign currency 2. Geneva Convention


stocks in the form of such bank 3. ICSID Convention
Nostro account
accounts with their overseas Select the correct answer using the code given
branches.
below:
A short-term credit available to
(a) 1 only (b) 1 and 3
Buyer’s credit an exporter from overseas
lenders. (c) 2 and 3 (d) 1, 2 and 3

Select the correct answer using the code given


below: 34. Consider the following statements about
(a) 1 and 2 (b) 1 and 3 Commercial Courts, Commercial Division
and Commercial Appellate Division of High
(c) 2 and 3 (d) 3 and 4
Courts Act, 2015:
1. It provides for constitution of Commercial
31. Consider the following statements regarding
Courts at State Level, Commercial Division and
‘National Productivity Council’:

FOCUS | March 2018 | RA U’S IAS 123


Commercial Appellate Division in the Supreme 4. They can be encashed only through a
Court designated bank account with the authorised
2. These special Courts shall adjudicate bank
commercial disputes whose value is less than Which of the statements given above is/are
Rs. 1 crore correct?
3. It will also include cases under The Arbitration (a) 1 and 4 (b) 2 and 3
and Conciliation Act, 1996 (c) 1 and 2 (d) 3 and 4
Which of the statements given above is/are
incorrect? 39. Which of the following electoral reforms has
(a) 1 and 2 (b) 2 and 3 been recently suggested?
(c) 3 only (d) 1 and 3 1. Disclosure of source of assets while filing
nomination
35. Ease of Doing Business Report is released by 2. Introduction of Voter-verified paper audit trail
which of the following institutions? VVPAT in Electronic Voting Machines
(a) WTO (b) IMF 3. Use of NOTA as one of the options during
(c) World Bank (d) UNCTAD voting
4. Abolition of Election Tribunals
36. Which of the following comes within the Select the correct answer using the code given
ambit of The Arbitration and Conciliation below:
Act, 1996? (a) 1, 2 and 4 (b) 1, 3 and 4
1. International commercial arbitration (c) 1, 2 and 3 (d) All of the above
2. Enforcement of foreign arbitral awards
3. Law relating to conciliation 40. Consider the following statements about
Select the correct answer using the code given Nirbhaya Fund:
below: 1. Government of India has set up Nirbhaya Fund
(a) 1 and 3 (b) 3 only to implement educational and health facilities
(c) 2 only (d) 1, 2 and 3 for women
2. Nirbhaya Fund has been set up by Ministry of
Women and Child Development
37. Which of the following recently notified the
scheme of Electoral Bonds? 3. Ministry of Finance id the nodal Ministry to
appraise schemes under Nirbhaya Fund
(a) Ministry of Home Affairs
Which of the statements given above is/are
(b) Ministry of Finance
correct?
(c) Election Commission of India
(a) 1 and 3 (b) 2 and 3
(d) Reserve Bank of India
(c) 1 and 2 (d) None of the above

38. Consider the following statements about


41. Which of the following schemes have been
Electoral Bonds:
formed through the dedicated Nirbhaya
1. They are bearer instrument in the nature of a
Fund?
Promissory Note
1. One Stop Centre
2. Interest are charged on Electoral Bonds by the
2. Mahila Police Volunteers
issuing Bank
3. Emergency Response support System
3. They can be used to donate to all political party
in India including unregistered political parties 4. Central Victim Compensation Fund

FOCUS | March 2018 | RA U’S IAS 124


Select the correct answer using the code given (b) is a progressive neurological disorder causing
below: patients to experience progressive loss of
(a) 1 and 4 (b) 2 and 3 memory and intellectual abilities.
(c) 2, 3 and 4 (d) All of the above (c) causes accelerated aging in children, leading to
premature death mostly due to heart attacks

42. Consider the following statements: (d) causes malformations affecting the finger and
toenails, and abnormalities affecting the lungs.
1. In First Past the Post system (FPTP) the
candidate with the maximum number votes in
each constituency wins the elections 46. Greenland, a massive island is an
2. In Proportional Representation, seats allocated autonomous territory of
in Parliament are in proportion to the votes (a) Netherlands (b) Denmark
cast (c) Norway (d) Sweden
Which of the statements given above is/are
correct? 47. Connecting the Ken and Betwa rivers
(a) 1 only (b) 2 only through a link canal has a danger of
(c) Both 1 and 2 (d) Neither 1 nor 2 inundating
(a) Dudhwa Tiger Reserve
43. A Bilateral Investment Treaty (BIT) is an (b) Ranthambore National Park
agreement establishing the terms and (c) Panna Tiger Reserve
conditions for private investment by (d) Bandipur National Park
nationals and companies of one state in
another state. This type of investment is
48. Abel prize is awarded for mathematics by
called-
(a) Norwegian Academy of Science and Letters
(a) Foreign Direct Investment
(b) Swedish Academy of Science and Letters
(b) Portfolio Investment
(c) Finnish Academy of Science and Letters
(c) Foreign Institutional Investment
(d) Danish Academy of Science and Letters
(d) None of the above

49. Which one of the following articles of the


44. The Indravati National Park is located in
Indian Constitution gives the President and
which among the following states of India?
the Governor, protection from legal action?
(a) Chhattisgarh
(a) Article 352 (b) Article 355
(b) Sikkim
(c) Article 356 (1) (d) Article 361(1)
(c) Madhya Pradesh
(d) Uttarakhand
50. Nagarhole National Park is in the state of
(a) Maharashtra (b) Orissa
45. ‘Progeria’ is a rare disease which
(c) Kerala (d) Karnataka
(a) is marked by stunted growth that may not
become obvious until the child is about three
years of age and leading to broad facial
abnormalities.

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1. Answer (d) 13. Answer (c) 25. Answer (a) 37. Answer (b)

2. Answer (b) 14. Answer (a) 26. Answer (b) 38. Answer (a)
3. Answer (a) 15. Answer (a) 27. Answer (c) 39. Answer (c)
4. Answer (c) 16. Answer (b) 28. Answer (d) 40. Answer (d)
5. Answer (b) 17. Answer (d) 29. Answer (c) 41. Answer (d)
6. Answer (a) 18. Answer (a) 30. Answer (a) 42. Answer (c)
7. Answer (c) 19. Answer (d) 31. Answer (b) 43. Answer (a)

8. Answer (b) 20. Answer (c) 32. Answer (c) 44. Answer (a)

9. Answer (c) 21. Answer (c) 33. Answer (d) 45. Answer (c)

10. Answer (c) 22. Answer (a) 34. Answer (a) 46. Answer (b)

11. Answer (b) 23. Answer (a) 35. Answer (c) 47. Answer (c)

12. Answer (a) 24. Answer (d) 36. Answer (d) 48. Answer (a)

49. Answer (d)

50. Answer (d)

FOCUS | March 2018 | RA U’S IAS 126


Here, we are sharing Essay Type Questions for self-
practice. These questions have been framed on
important issues covered in editorials drawn from
Essay Type Questions leading newspapers. A reader is expected to read the
editorals, understand & analyse them, and practice
for mains gs papers I, II & III the question given above each editorial in 200 words
to command on issues relevant for General Studies
Papers- I, II, III & Essay.

Q1. Rooftop solar power is a more viable and greener option of electricity generation especially in
rural India. Discuss the impediments as well as possible solutions to ensure solar electrification of rural
India.

Rooftop Energy The Hindu | Category: Environment

Bengaluru’s aerial mission to produce a three dimensional map of rooftop solar power potential using Light
Detection and Ranging (LIDAR) data can give this key source of power a big boost. Similar mapping exercises have
been carried out in several countries over the past few years to assess how much of a city’s power needs can be met
through rooftop solar installations. A survey helps determine usable rooftops, separating them from green spaces, and
analyses the quality of the solar resource. With steady urbanisation, solar maps of this kind will help electricity utilities
come up with good business cases and investment vehicles and give residents an opportunity to become partners in
the effort. An initiative to rapidly scale up rooftop solar installation is needed if the target of creating 40 GW of capacity
connected to the grid by 2022 is to be realised. Rooftop solar power growth has demonstrated an overall positive
trend, including in the fourth quarter of 2017 when tenders for 220 MW represented a doubling of the achievement in
the previous quarter. But this will need to be scaled up massively to achieve the national target. Going forward,
domestic policy has to evaluate the impact of factors such as imposition of safeguard duty and anti-dumping duty
on imports, and levy of the goods and services tax on photovoltaic modules. The industry is apprehensive that the
shine could diminish for the sector during the current year, unless policy is attuned to the overall objective of
augmenting capacity.

Major solar projects that connect to the grid often face the challenge of land acquisition and transmission
connectivity. This has led to a delay in planned capacity coming on stream during 2017: nearly 3,600 MW did not get
commissioned during the last quarter, out of a scheduled 5,100 MW. What this underscores is the importance of
exploiting rooftop solar, which represents only about 11% of the country’s 19,516 MW total installed capacity at the
start of 2018. The Centre should come up with incentives, given the enormous investment potential waiting to be
tapped and the real estate that can be rented. The southern States and Rajasthan together host the bulk of national
solar infrastructure on a large scale. With some forward-looking policymaking, they can continue to lead by adding
rooftop capacity. India, which is a founder-member of the International Solar Alliance launched in Paris during the
climate change conference more than two years ago, must strive to be a global leader. Initiatives such as the Bengaluru
mapping project can contribute to assessments of both real potential and risk. This is crucial for projects on a large
scale involving significant exposure for financial institutions, including banks. With ongoing improvements to solar cell
efficiency and battery technology, rooftops will only get more attractive in the future.

Key words: 1. three dimensional map 2. rooftop solar power 3. Light Detection and Ranging (LIDAR) 4. safeguard duty 5. anti-
dumping duty 6. transmission connectivity 7. International Solar Alliance

FOCUS | March 2018 | RA U’S IAS 127


Q2. The right ‘not to accept’ medical treatment is essential to liberty. Discuss with respect to passive
euthanasia.

Death with dignity The Hindu | Category: Polity & Governance

The core philosophy underlying the Supreme Court’s verdict allowing passive euthanasia and giving legal status to
‘advance directives’ is that the right to a dignified life extends up to the point of having a dignified death. In four
concurring opinions, the five-member Constitution Bench grappled with a question that involved, in the words of
Justice D.Y. Chandrachud, “finding substance and balance in the relationship between life, morality and the experience
of dying”. The outcome of the exercise is a progressive and humane verdict that lays down a broad legal framework for
protecting the dignity of a terminally ill patient or one in a persistent vegetative state (PVS) with no hope of cure or
recovery. For, in such circumstances, “accelerating the process of death for reducing the period of suffering constitutes
a right to live with dignity”. The core message is that all adults with the capacity to give consent “have the right of self
determination and autonomy”, and the right to refuse medical treatment is also encompassed in it. Passive
euthanasia was recognised by a two-judge Bench in Aruna Shanbaug in 2011; now the Constitution Bench has
expanded the jurisprudence on the subject by adding to it the principle of a ‘living will’, or an advance directive, a
practice whereby a person, while in a competent state of mind, leaves written instructions on the sort of medical
treatment that may or may not be administered in the event of her reaching a stage of terminal illness.

Passive euthanasia essentially involves withdrawal of life support or discontinuation of life-preserving medical
treatment so that a person with a terminal illness is allowed to die in the natural course. The court’s reasoning is
unexceptionable when it says burdening a dying patient with life-prolonging treatment and equipment merely because
medical technology has advanced would be destructive of her dignity. In such a situation, “individual interest has to be
given priority over the state interest”. The court has invoked its inherent power under Article 142 of the Constitution to
grant legal status to advance directives, and its directives will hold good until Parliament enacts legislation on the
matter. The government submitted that it was in the process of introducing a law to regulate passive euthanasia, but
opposed the concept of advance directive on the ground that it was liable to be misused. The stringent conditions
imposed by the court regarding advance directives are intended to serve as a set of robust safeguards and allay any
apprehensions about misuse. The court is justified in concluding that advance directives will strengthen the will of the
treating doctors by assuring them that they are acting lawfully in respecting the patient’s wishes. An advance directive,
after all, only reflects the patient’s autonomy and does not amount to a recognition of a wish to die.

Key words: 1. passive euthanasia 2. advance directives 3. dignified life 4. dignified death 5. persistent vegetative state (PVS)
6. Self-determination and autonomy 7. living will 8. Article 142

Q3. Discuss the impact of recent electoral reforms initiated for a cleaner and transparent election
process.

Directing Reforms The Hindu | Category: Polity & Governance

Adding to the growing body of judicially inspired electoral reforms, the Supreme Court has imposed an additional
disclosure norm for candidates contesting elections. It has asked the Centre to amend the rules as well as the
disclosure form filed by candidates along with their nomination papers, to include the sources of their income, and
those of their spouses and dependants. The court has also asked for the establishment of a permanent mechanism to
investigate any unexplained or disproportionate increase in the assets of legislators during their tenure. The verdict of
the two-judge Bench on a petition from the NGO, Lok Prahari, is one more in a long line of significant verdicts aimed at
preserving the purity of the electoral process. These include the direction to provide the ‘NOTA’ option in voting
machines, and another striking down a clause that saved sitting legislators from immediate disqualification upon
conviction. It has ruled that the act of voting is an expression of free speech, and that it is part of this fundamental
right that voters are required to be informed of all relevant details about a contestant. This led to the rule that
candidates should furnish details of any criminal antecedents, educational qualifications and assets. If disclosure of

FOCUS | March 2018 | RA U’S IAS 128


assets is mandatory, it is only logical that the sources of income are also revealed. And as it is often seen that there is a
dramatic increase in the assets of candidates at every election over what was disclosed in previous affidavits, it stands
to reason that any rise should be explained or probed.

Few will dispute that lawmakers amassing wealth or gaining unusual access to public funds and loans are concerns
that need to be addressed through new norms. To give teeth to its order, the court has made it clear that non-
disclosure of assets and their sources would amount to a “corrupt practice” under Section 123 of the Representation
of the People Act, 1951. Lest a question be raised whether the court’s order to amend the relevant rules amounted to
legislation, the Bench has said it sees no “legal or normative impediment”, as the Centre is empowered by the Act to
frame rules in consultation with the Election Commission. The idea of a permanent mechanism to collect data about
the assets of legislators and periodically examine them is laudable, but it is not clear which authority will run it. The
court envisions a body that would make recommendations for prosecution or disqualification based on its own
findings. The Centre and the Election Commission will have to jointly address the issue. The larger message from the
verdict is that a fully informed electorate and transparent candidature will be key components of future elections in
India.

Key words: 1. electoral reforms 2. disclosure norm 3. NOTA 4. free speech 5. corrupt practice 6. Election Commission

Q4. Any decision of the government to impede cattle trade affects right to profession which is also a
fundamental right. Critically analyse.

A good rollback The Indian Express | Category: Polity & Governance

The Centre’s decision to redraft the Prevention of Cruelty to Animals (Regulation of Livestock Market) Rules is welcome.
Notified in May last year, the rules required a cattle-seller in a livestock market to furnish a written declaration stating
that the animal “was not being sold for slaughter”. They also prohibited a person who had purchased cattle from such
a market from selling the animal for slaughter. The notification was opposed by farmers because it went against the
usual practice of bringing aged bovines to livestock markets from where they would be transported for sale to
slaughter houses. The new rules being drafted by the law ministry try to address their concerns. They have done away
with the requirement to certify that the animal is not meant for slaughter. They only say: “No unfit animal or young
animal shall be sold in an animal market and… no person shall permit an animal to be offered or displayed for sale in
an animal market if it is likely to give birth.”

The government initially justified the 2017 rules on the ground that disallowing livestock markets to trade in animals
for slaughter would make no difference to the abattoirs and meat processors. It argued that slaughter houses could
get their supplies straight from the farms while the livestock markets would deal only in animals meant for milch and
agricultural purposes. However, unlike in the West, livestock markets in India do not display a pronounced distinction
between cattle meant for agricultural purposes and those headed for slaughter houses. Farmers in the country rear
cattle for milk till the animals are about nine years old and then sell them for slaughter. The buyer, who then sells these
spent animals to the slaughter houses, is actually doing the farmers a favour by not only buying the bovines but also
saving them the cost of fodder and labour resources that can be used for animals that yield milk.

The new rules, drafted by the Centre, are more in tune with the realities of the rural economy. But with some states
striving to outdo each other in demonising the cattle trade, their efficacy could be anybody’s guess. Last year, for
example, Gujarat stipulated a life sentence as the maximum punishment under the state’s Animal Preservation
(Amendment) Act. This month, Rajasthan’s Bovine Animals (Prohibition of Slaughter and Regulation of Export) Act
acquired a section under which a “competent officer” can now delegate the power of arresting a person accused of
smuggling cattle to a “nominated official” — a troubling provision in a milieu in which boundaries between a crackdown
on illicit cattle trafficking and cow vigilantism have become porous and reports of the state police actually

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incriminate the victims of such attacks. It’s no coincidence, then, that the Rajasthan animal husbandry department’s
data shows a 90 per cent fall in sales in cattle fairs in the state last year, compared to 2012.

Key words: 1. livestock 2. aged bovines 3. cattle trade 4. illicit cattle trafficking

Q5. The Cauvery river water dispute is a topographical issue which cannot be solved through the
prism of politics. Critically analyse.

No lines in water The Indian Express | Category: Polity & Governance

Delivering its verdict on the Cauvery water dispute, the Supreme Court stressed that “The waters of an inter-state
river cannot be said to be located in any one state.” The court modified the 2007 award of the Cauvery Water
Disputes Tribunal (CWDT) it had constituted to decide the more than a century-old dispute between Karnataka, Tamil
Nadu, Kerala and Puducherry. It increased the share of upstream Karnataka by 14.75 thousand million cubic feet (tmcf)
per year. This increase is at the expense of Tamil Nadu, where political parties have been quick to denounce the
verdict. The government in poll-bound Karnataka has welcomed it. However, governments and political parties in both
states would do well to note the SC’s central message: “No state can claim exclusive ownership of such waters so as
to deprive the other states of their equitable share.” More salient is the court’s directive that states constituting a river
basin use “its water in a sustainable manner”.

The roots of the Cauvery dispute lie in a historical imbalance between Tamil Nadu and Karnataka. From around the
10th century, rulers in what is today Tamil Nadu built reservoirs and check dams to tap the Cauvery’s waters for
irrigation. About 16 lakh acres in the state was under irrigation by the river’s water in 1892, when the first Cauvery
water-sharing agreement was signed between the princely state of Mysore (largely what constitutes the Cauvery
basin in Karnataka today) and the Madras Presidency.

In contrast, less than 5 lakh acres was irrigated by the Cauvery in Karnataka, when dam-building endeavours began in
the 1920s. This imbalance became an emotive issue following the reorganisation of states after Independence.
Throughout the 1960s, Tamil Nadu objected to Karnataka building dams on the Cauvery. In 1974, Karnataka asserted
that colonial-era agreements over river-sharing were skewed against it. Tamil Nadu contended any change in the
established pattern would adversely affect farmers’ livelihoods. It was only in 1990 that the SC constituted the CWDT,
which took another 17 years to deliver its verdict. The judgment, which allocated 419 tmcf to Tamil Nadu and 270 tmcf
to Karnataka, was challenged by both states.

Recent verdict stipulates a Cauvery water board to administer water allocation. But a similar board constituted by the
CWDT was ineffective in years of lean rainfall. In a normal monsoon year, the Cauvery takes care of the needs of both
upstream and downstream states. But the mistrust between the two aggravates during a drought year, as in 2016. The
SC’s call for a basin-centred approach holds salience in such times. Friday’s verdict should, therefore, be seen as a
directive for collective solutions such as sharing data on reservoir storage. It’s a call to both states to shed their
parochial approach.

Key words: 1. Cauvery water dispute 2. Cauvery Water Disputes Tribunal (CWDT) 3. exclusive ownership 4. equitable share 5.
water-sharing agreement 6. reorganisation of states

Q6. What is the practical use of surveys conducted by Forest Survey of India? How does it help in
improving the forest cover and quality of forest?

An uneven green The Indian Express | Category: Environment & Ecology

Every two years, the Dehradun-based Forest Survey of India conducts an audit of the country’s forest wealth, The
India State of Forest Report (ISFR). Ever since these surveys began in 1987, most such exercises have recorded an
increase in India’s forest resources. The 15th IFSR, released on Monday, is in line with this trend. It shows that India’s

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forest cover has registered a marginal increase of about one per cent between 2015 and 2017. According to the
Environment Ministry, “India has shown an increasing trend in forest cover as against the global trend of decreasing
forest cover.” Such self-congratulation is, however, misplaced. In fact, the survey itself notes that much of the increase
“in the forest cover can be attributed to plantation activities within and outside recorded forest areas as well as in the
interpretation of satellite data”. Herein lies the methodological problem with the IFSR.

Since its inception, the audit has been recording plantations, including commercial monocultures, as forests. Such
green wealth does have ecological functions. It helps retain moisture, holds soil and captures carbon to an extent. But
it is common knowledge that plantations or other patches of greenery cannot sustain populations of endangered
animals, the tiger, for example — trap rainwater to give birth to rivers or control floods. Several studies have shown
that such monocultures (one, two or, at the most, three tree species) are no substitute for biodiverse ecosystems. A
study published in the journal Science in 2016, for example, found that the capacity of the green areas in Europe to
absorb carbon dioxide has come down significantly despite the continent recording an increase in such areas over the
past 250 years. The study attributed this failure to the use of non-native plantations in the afforestation programmes
of most European countries.

The IFSR notes a more than one per cent increase in very dense forests. But this figure should be seen along with other
statistics in the report. The survey this time has evaluated 44 more districts compared to the last such exercise in 2015.
This difference in the area assessed should be reason enough for caution while measuring the success of the country’s
afforestation programmes. But even more sobering are the figures from the Northeast. Since 2011, the region has lost
more than 2,400 sq km of forests. Given that climate change mitigation programmes in the country emphasise the role
of forests in the Northeast as carbon sinks, this loss should spur efforts towards effective conservation projects. Along
with that, the country also needs a sound methodology to measure its forests.

Key words: 1. Forest Survey of India 2. India State of Forest Report (ISFR) 3. increasing trend 4. forest cover 5. plantation
activities 6. commercial monocultures 7. biodiverse ecosystems 8. non-native plantations

Q7. Development without an ethical conduct will eventually lead to decaying of the moral fabric in
our society. Comment.

Ethics as efficiency for rapid growth Economic Times | Category: Ethics & Development

At this year’s edition of the Economic Times Global Business Summit, Prime Minister Narendra Modi stressed the need
for competition, ethics, speed and efficiency to create the New India and New Economy that everyone present
aspired to achieve. In terms of speed and accountability in the working of the government, the PM did set the bar
high for the businessmen present, as well as for those who formulate policy and implement it, by seeking speedy
doubling of India’s gross domestic product to $5 billion. Without ambition, we concur, it is difficult to achieve. Unless
the ambition is translated into specific goals along a timeline and the general principles of advance are identified,
progress would be limited. The government sets high store by ethics and would not tolerate those whose conduct is
unethical, he said. Such commitment to high ethical standards is welcome, and offers the Opposition a convenient
standard by which to measure the government’s worth.

The theme played out in what finance minister Arun Jaitley said at the GBS the next day. He put the onus of ensuring
ethical conduct on regulators, who, in his opinion, should have a third eye that is constantly open and watching the
objects of regulation. Regulators, however, he observed, are accountable to no one, even as politicians are accountable
to Parliament and, once elections happen, directly to the people. This is why the government should revive one of the
Bills that the previous government initiated but failed to see through Parliament, one aimed at holding regulators to
account. Ideally, regulators should be accountable to Parliament, via its standing committees, to insulate them and the
executive from charges of meddling while retaining institutional accountability to the people. To give the political
leadership the moral authority to enforce ethical conduct, it is imperative to clean up political funding, for which we
need a lot more than electoral bonds.

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Key words: 1. Competition 2. Ethics 3. Speed and efficiency 4. Accountability 5. Regulators 6. institutional accountability

Q8. Discuss the important features of Kisan Urja Suraksha Evam Utthaan Mahaabhiyan (KUSUM)
scheme. What are the challenges which may occur during the implementation of KUSUM scheme?

Sound move on solar-powered water pumps Economic Times | Category: Environment

The news on the renewable energy front is mixed: the nationwide scheme to promote solar-powered water pumps is
hugely welcome, but the move to further extend the waiver of transmission charges on solar and wind power
projects should be abandoned. Power minister R K Singh has said that the Rs 48,000 crore Kisan Urja Suraksha Evam
Utthaan Mahaabhiyan (KUSUM) scheme to promote solar power among farmers and cultivators would be vetted by
the Cabinet in March.

KUSUM aims to empower agriculturists to opt for solar-powered water pumps and also to generate power for extra
income. Reportedly, there are several components in the multi-year scheme including installation of 17.5 lakh off-grid
solar-powered water pumps, and the solarisation of grid-connected farm pumps adding up to 7,250 MW capacity load.
Both off-grid solar pumps and solarisation of grid-connected pump capacity have the potential to improve finances
of state power utilities and arrest reckless populism in power via routine giveaways. In parallel, we do also need to
boost canal irrigation coverage, so as not to have unsustainable groundwater usage using power pumps.

However, the decision to extend the transmission charge waiver for solar and wind projects till 2022 surely needs
reviewing. We do need to step-up line capacity for renewable power projects. In fact, grid infrastructure in India
needs rapid scaling up, inter-state and intra-state. The lack of evacuation capacity can well come in the way of the 175-
GW target for renewable power capacity by 2022. Given falling generation tariffs for solar and wind projects, we clearly
need to devise a similar bidding system to have reasonable tariffs for renewable power transmission capacity. Waiving
transmission charges does not incentivise investment in the sector.

Key words: 1. renewable energy 2. waiver of transmission charges 3. solar and wind power projects 4. Kisan Urja Suraksha
Evam Utthaan Mahaabhiyan (KUSUM) 5. off-grid solar pumps 6. grid-connected pump 7. grid infrastructure

Q9. Recycling and recovery of plastics for reuse as raw material will considerably reduce plastic waste.
Discuss with respect to implementing plastic waste management framework in India.

Regulate, not ban, the use of plastics Economic Times | Category: Environment

Plastics are the mainstay of modern life and economy on account of their versatility and durability. These very
properties that make plastics ubiquitous in production and consumption systems now harm human beings, animal
and marine life and the planet. This year, United Nations Environment Programme has reducing plastic pollution
as its theme, and India, as the global host of World Environment Day, will champion the goal. Global production of
plastic has gone up from 1.5 million tonnes (MMT) a year in 1950 to 300 MMT today. As much as 50% of this is single-
use. The annual consumption of plastic in India is nearly 12.8 million tonnes, and expected to rise at a compound
annual growth rate of 10%. Globally, only 14% of plastics is recycled. In India, more than 15,000 tonnes of plastic
waste is generated every day, a third of which remains uncollected. India’s ragpickers and kabadiwallahs do help divert
plastics from landfills, but the system is far from efficient. In 2016, India issued a new regulatory framework for plastic
waste management but implementation remains a problem. This is not about doing away with plastics but about
shifting to a production and consumption system that is smart, innovative and sustainable based on efficiencies across
the entire life cycle of the product. This shift must focus on reducing the use of plastics, particularly single-use,
wherever practical. This will result in the added benefit of reducing greenhouse gas emissions and dependence on
fossil feedstock. Next, the focus must be on redesigning products, and developing alternatives. Recycling and
recovery of plastics for reuse by the industry and as raw material in sectors such as construction will considerably
reduce plastic waste. A successful transition must involve the private sector.

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Key words: 1. United Nations Environment Programme 2. plastic pollution 3. World Environment Day 4. plastic waste 5.
plastic waste management 6. greenhouse gas emissions 7. fossil feedstock

Q10. What should be the possible steps taken by group of people who are on a trekking spree if they
are suddenly trapped in a raging forest fire?

A needless tragedy Asian Age | Category: Environment/Disaster Management

A tragedy struck a group of trekkers in the southern hills of the Western Ghats on the Tamil Nadu-Kerala border.
Members of a trekking club from Chennai and some others from cities near the hills were on a Women’s Day trek
through forests when they were confronted with a raging forest fire. While little is known on what caused the fire (it’s
common enough in the dry season), those on the trek were so disorganised that they didn’t seem to know what to do
in case of a forest fire. They seem to have needlessly exposed themselves to danger by trying to walk downhill through
the fire instead of climbing to safety where they came from. It also seems they had not been briefed properly on
safety precautions.

There are two aspects to this. The trek may have been unauthorised, with permission not sought from the forest
department, which may not have allowed treks through prohibited areas like reserve forests. In these things, there’s
only a thin red line between adventure and misadventure. The other aspect is that the fire may have had a human
element. It seems to have started in the foothills where vegetation is basically grass and it swept up into the woods. A
thorough inquiry is needed to establish the cause of the fire. The government too must formalise trekking, and make it
mandatory for groups to use seasoned foresters as guides before going on hilly terrain. The forest department, along
with the hill area authorities, can easily mark safe trekking routes, and only these should be used by trekkers.

Key words: 1. Western Ghats 2. forest fire 3. safety precautions 4. forest department 5. reserve forests

Q11. Examine the role of India’s prospect of intervention in the recent turmoil in Maldives.

Turmoil in Maldives: What India must do Indian Express | Category: International Crisis

The crisis in Maldives has raised arguments about whether and when India should intervene in Maldives. President
Abdulla Yameen has defied India’s demand that the independence of the Maldivian Supreme Court and Parliament be
restored and that the jailed political prisoners be restored their rights.The non-cooperation of the Maldivian
government has tested Indian foreign policy commitment to the principle of non-intervention, and whether as similar
to earlier instances in India’s neighbourhood, there has been pressure on India to intervene.

The different political formations in the opposition to President Yameen have sought India’s intervention on their
behalf in Maldivian crisis. Moreover, he has been testing the limits of his manoeuvrability between India and China,
wherein China has gained rapid ground in the Maldives. India has two very different options. For one, to negotiate with
President Yameen who is in power and expect him to respects India’s core interests. For second, India can intervene
in Maldives and seek restoration of democracy by engaging with the Maldivian opposition.

Maldives currently has deeply fractured political elite and are using the strategic location of Maldives to bargain with
India and engaging with China. It thereby becomes the burden of all major powers to ensure its security especially in
their own regions. Similarly, India needs to protect its regional security by having positive resolution to the Maldives
crisis.

Keywords: 1. China 2. Intervention 3. President Yameen

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Q12. Assess India-Iran relations in the backdrop of Iranian conflict in Middle East.

India, Iran and a divided Middle East Indian Express | Category: Bilateral Relations
Iran has focussed on a program of expansive regional influence and is being countered from its Arab neighbours,
Israel and US. The focus of the engagement between India and Iran is on bilateral issues relating to trade, investment
and connectivity. Yet, it is necessary that Iran’s foreign politics and its involvement in the multiple conflicts in the
Middle East must be taken into account by India.

Iran’s current biggest challenge is the sharpening of conflict between Iran and Saudi Arabia in Yemen, Lebanon, Syria,
and other regions of the Middle East. However, India’s discourse on relations with Iran has been framed it in terms of
Iran’s conflict with the United States.

India has forming means to not let US sanctions on Iran interfere with India’s engagement with Iran. Both countries
have engaged in a Rupee-Rial arrangement, investment in Chabahar port, etc.India’s engagement with Iran thereby
becomes critical for the pursuit of three important Indian objectives in the Middle East. One is the promotion of mutual
political accommodation within the region; another is pressing for an end to the export of destabilising ideologies from
the region; and finally the construction of a coalition against violent religious extremism that has inflicted so much
suffering in the Middle East and the Subcontinent.

Keywords: 1. Israel 2. Saudi Arabia 3. United States 5. Rupee-Rial Arrangement

Q13. What has been the impact of Khalistani politics in Canada on Indo-Canada relations?

Canadian bathos: Justin Trudeau’s vote-banks Indian Express | Category: Bilateral Relations

It is a common understand that domestic politics often trumps the enlightened pursuit of foreign policy due to
narrowly-based domestic constituencies for electoral reasons. This has been seen in Prime Minister Justin Trudeau’s
political indulgence of Sikh extremists in Canada. Sikhs form a third of the Indian community in Canada of roughly 1.2
million or 3 per cent of Canadian population, of which only a miniscule group forms a support base to the Khalistani
movement.

The hijacking of India-Canada relations sympathizing given by the Justin Trudeau’s party and government to the small
group of separatists. India’s repeated efforts to call to attention the indulgence of several in Canadian politics to
separatist groups have been ignored by Canadian government. The common vision jointly agreed in 2015 for strategic
partnership, was built on the many shared interests between the two countries and Justin Trudeau and his
government need to showcase the political will to put the partnership with India back on track and skill to navigate
beyond the vote-bank politics.

Keywords: 1. Justin Trudeau 2. Khalistan 3. Vote bank politics

Q14. Give an account of the impact of TAPI pipeline in the South Asian politics.

New dynamic in the North West Indian Express | Category: International Project

The ground-breaking ceremony for the construction of the trans-border natural gas pipeline was held in Afghanistan.
The Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline is premised on the hope that economic self-interest could
eventually bring the region together. Pakistan had generally resisted all economic cooperation with India, either
bilaterally or regionally, and held it hostage to the resolution of the Kashmir question. It has been even more neuralgic
about engaging India on anything to do with Afghanistan. But through the last decade and more, Pakistan has sat
down with its two neighbours and Turkmenistan to advance the project.

Within Afghanistan, the Taliban has also promised not to attack the TAPI pipeline that it described as a “national
project”. Ironically, the idea of building the TAPI at a cost of nearly $10 billion has received little international support.

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No international bank was willing to risk large amounts of capital in a sub-region marked unending terror and its
negative impact on the political relations involving Afghanistan, Pakistan and India. This is also a proposal for the
involvement of China within this project.

The new dynamic in the region offers two important guidelines for Indian policy. First, the past is not necessarily a
guide to the future. After all structural changes over time are inevitable. Second, India has the resources and agency to
alter the strategic condition of its north west. India must continue to prioritize them.

Keywords: 1. India 2. Pakistan 3. Afghanistan

Q15. Give an account of the growing constraints in India’s engagement in South Asia and means to
overcome them.

Make the neighbourhood first again The Hindu | Category: Indian Foreign Policy

There is a growing problem for India wherein other governments in the SAARC region are either not on ideal terms
with India, or facing political headwinds. In the Maldives, President Yameen Abdul Gayoom has challenged the Indian
government, whether it is on his crackdown on the opposition, invitations to China, or even breaking with India’s effort
to isolate Pakistan at SAARC. In Nepal, the K.P. Sharma Oli government is certainly not prioritizing India, and has also
extended invitation to the Pakistan for dialogue without consulting with India. In Pakistan, India has been unable to
push Pakistan for halting cross-border terrorism, open access to Afghanistan, etc.

The next problem is the impact of China’s unprecedented forays into each of these countries. China has opened up an
array of alternative trade and connectivity options after the 2015 India-Nepal border blockade: from the highway to
Lhasa, cross-border railway lines to the development of dry ports. In Sri Lanka, Bangladesh, the Maldives and Pakistan,
China holds strategic real estate, which could also be fortified militarily in the future. At present, it means China has a
stake in the internal politics of those countries. China has also stepped in to negotiate a Rohingya refugee return
agreement between Myanmar and Bangladesh, or offer to mediate between the Maldivian government and the
opposition, etc. The decision to use hard power tactics by India in the neighbourhood has had a boomerang effect. The
surgical strikes on Pakistan of 2016 have been followed by a greater number of ceasefire violations and cross-border
infiltration on the Line of Control. The 2015 Nepal blockade and a subsequent cut in Indian aid channelled through the
government led to the elections of the parties which were not friendly to India.

India’s most potent tool is its soft power wherein India’s developmental assistance has shown successes in Bhutan and
Afghanistan. With regards to China, India government must attempt a three-pronged approach. First, where possible,
India should collaborate with China in the manner it has over the Bangladesh-China-India-Myanmar (BCIM) Economic
corridor. Second, when it feels a project is a threat to its interests, India should make a counter-offer to the project, if
necessary in collaboration with its Quadrilateral partners, Japan, the U.S. and Australia. Third, India should coexist with
projects that do not necessitate intervention, while formulating a set of South Asian principles for sustainable
development assistance that can be used across the region.There is a need for SAARC to learn from the success of
ASEAN wherein the SAARC countries should have more and multi-facetted dialogues. India also should allow other
countries to take lead in specific areas of interest such as trade, transportation, etc.

Keywords: 1. China 2. ASEAN 3. SAARC 4. Soft Power

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Q16: “The proposed Fugitive Economic Offenders Bill 2017 may deter fraudsters fleeing the country, but
its draconian provisions may be misused.” In light of the statement critically examine the main
provisions of the Bill.

Deterring fugitives Business Line | Indian Economy

As Indian banks’ gross NPAs nudge ₹8 lakh crore and new mega-frauds like PNB’s tumble out of the closet, there is
mounting public anger against perpetrators of financial crimes who hop abroad to evade prosecution. The
Government’s keenness to bring them to book through a new law — The Fugitive Economic Offenders Bill 2017 — is
thus understandable. The draft law carries stringent provisions that may serve as a deterrent to fraudsters fleeing the
country to escape the consequences of their crimes. But the worry is the possibility of misjudgement or misuse of the
sweeping discretionary powers granted to courts and officials.

To ensure that perpetrators of specified crimes have a strong incentive to stay put, the Bill empowers officials to attach
domestic properties of suspects even before a case is filed in a Special Court. The Special Court, on hearing this
petition, can summarily declare suspects as ‘fugitive economic offenders’ and order confiscation of their assets to the
Centre, for sale and settlement of dues. While seizure of property before producing proof is harsh no doubt, this can
be overlooked on the count that this law only applies to suspects who try to leave India after an arrest warrant has
been issued, that too where the offense involves ₹100 crore or more. But as the list of culpable offences ranges from
possessing counterfeit Government stamps and cheating to criminal conspiracy, bribe-taking and bank fraud, it can
sometimes lead to harsh penalties that are out of proportion to the crime. There are other aspects to this draft law too,
which appear severe. For instance, the seizure powers apply not just to property believed to be part of the proceeds of
the crime, but also to all ‘other properties’ belonging to the suspect. Once the Special Court declares a person as a
fugitive, he can be debarred from filing and defending any civil claims thereafter. While this blanket ban is against the
principles of natural justice, what is even harsher is barring companies from filing civil claims if their large
shareholders, promoters or key managerial personnel are declared ‘fugitives’. These provisions can wreak undeserved
collateral damage on minority shareholders in a listed company, and need a rethink before the Bill becomes law.

The Bill also doesn’t address the roadblocks the existing laws face in bringing large fraudsters to book. Perpetrators of
financial crimes in India manage to evade punishment under the rash of existing laws by taking cover behind
extradition treaties and spiriting away personal assets abroad. It remains to be seen whether now at least, the
authorities manage to shut the cage before the chickens fly the coop.

Key words: NPAs, Fugitive Economic offenders, culpable offences

Q17. What are the key issues which could get addressed with the passage of Major Ports Authorities
Bill, 2016? What implication would it have on the development of Port sector in India? Discuss.

Clearing the decks Business Line | Indian Economy

The Major Ports Authorities Bill 2016, when passed, will pave the way for governance reform in the management of
11 out of 12 major ports in India now run as trusts (the Ennore port is a company), with the Centre acting as both
regulator and service provider. With ‘authority’ status, ports will have a smaller management board, enabling
expedient decisions on modernisation and use of port trust lands in the public interest. It is the first step towards
moving to a ‘landlord model’ in the management of ports as is the practice worldwide; the government would regulate
the services provided by private players, while not being a service provider itself — hence, avoiding conflict of interest.
The unions, which have protested the Bill, are not off the mark in saying that the management of ports as authorities is
the first step towards their eventual corporatisation. A transition from authority to company status may not require
the consent of Parliament. However, there can be no denying that the management of ports as trusts over the decades
has done little to commend itself. Trust boards have turned into fiefdoms of bureaucrats and politicians. Apart from

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cronyism in the parcelling out of port land, the development of ports has suffered, with decisions not being taken in
an objective, transparent manner.

With India’s major and non-major ports (over 200 of them) accounting for over 70 per cent of India’s international
trade by value, it was necessary to address inefficiencies such as high turnaround time of ships by stepping up
modernisation and grappling with shoddy management. The new Bill marks an effort to promote ease of doing
business. The Cabinet recently accepted some of the recommendations of the Standing Committee on the Bill, such as
increasing the representation of labour on the board to protect their interests. Reforms have been under way since
1996, when ports were opened to private investment. Of the 240 cargo berths operating in the major ports, 66 berths
or 28 per cent are run on a PPP basis. Of the 174 state-owned berths, 102 load general or multiple cargo. Specialised
cargo handling berths have a higher scope for PPP, mechanisation and improved efficiencies. While major ports have
been losing share to non-major ones (some of them privately run) over the last decade, accounting for about 57.2 per
cent of the total cargo handled of 1,133 million tonnes in 2016-17, there have been recent improvements in
performance. Cargo handled by major ports increased by 6.8 per cent in 2016-17, against 4.2 per cent in the case of
non-major ports.

The focus should also be on re-skilling the workforce, rather than cutting down on their numbers, already down to
about 37,000 in the major ports from about a lakh a decade ago. Reforms can usher in efficiency benefits rising out of
the landlord model, without compromising the public interest.

Key words: governance reform, regulator, service provider, modernisation, corporatisation, cronyism, mechanisation

Q18. The move to throw open coal mining to private participation is welcome but structural issues
need to be addressed. Discuss

Opening up coal Business Line | Indian Economy

India sits on the third-largest coal reserves in the world — enough to last for the next 400 years at current
consumption levels. The fossil fuel’s importance to the country cannot be over-emphasised — 66 per cent of India’s
electricity is generated from it. Despite its criticality, the sector continues to be plagued by periodic crises, when coal
stocks with power plants almost run out. It has happened twice in the last four months. If there is one reason for this
dichotomous situation, it was the decision taken way back in 1973 to nationalise the coal sector. With a monopoly
over the market for 45 long years, Coal India and its subsidiaries had very little incentive to become efficient and
market savvy to meet the demands of their consumers. That ended this week when the Modi government, in a
significant reform measure, decided to open up the coal industry for private sector participation — by both domestic
and foreign players. That the government has gone the whole hog and allowed private sector to mine without any end-
use restriction or price caps is significant. Earlier reforms had at best allowed private players especially in power,
cement, steel and aluminium sectors to mine for captive use. It is expected that investments will now flow into this
sector and along with it modern technology and global manufacturing. The competition that will ensue should ideally
force Coal India to up its game as well.

But will allowing private players prove to be a panacea for all ills facing the coal sector? Not really. Coal output could
well rise but challenges involving evacuating it from the pithead to the consumers will remain. Lack of rail links to
mines and where such links exist, inadequate availability of railway rakes, cause enormous disruption in supply of coal.
The Centre needs to address this bottleneck on a war footing. In fact private players, especially foreign firms, will
hesitate to invest if they are unsure how to reach the coal they mine to the users. Also, the move may not, as the
government hopes, reduce coal imports significantly for multiple reasons. Coal is a freight-sensitive commodity and
most of the coal is mined in the country’s hinterland. The cost per tonne of imports is much lower for consumers who
are closer to India’s vast coastline. That imported coal has higher calorific value is an added benefit. Also, Indian coal is
inferior in quality due to its high ash content rendering it almost unusable for sectors such as cement which has over

FOCUS | March 2018 | RA U’S IAS 137


the years preferred to import and more recently, shifted to pet coke. Private coal producers will thus have to sell
predominantly to power producers, many of whom are not exactly in the pink of health financially.

The Centre’s decision, though belated, is welcome. If the process of allocation of mines is transparently executed and
other concerns such as evacuation bottlenecks and the financial health of power producers are addressed, the era of
coal shortages could well become history.

Key Words: coal stocks, nationalization, monopoly, freight-sensitive commodity, private-sector participation

Q19. Despite the commendable efforts of both state and central governments to push manufacturing
investments through a host of policy measures, incentives and marketing campaigns, the Indian
manufacturing sector is yet to realise its full potential. Discuss.

Unlocking manufacturing potential Financial Express | Indian Economy

Despite the commendable efforts of both state and central governments to push manufacturing investments
through a host of policy measures, incentives and marketing campaigns, the Indian manufacturing sector is yet to
realise its full potential. The cumulative growth in Index of Industrial Production for manufacturing during April-
December 2017, over the corresponding period of 2016, is only 3.8%, according to the ministry of statistics and
programme implementation data. One key issue that both Indian and foreign investors have highlighted is the
difficulty in securing suitable land for projects. Proposed investments often face the problem of outright non-
availability, or they get tangled in the cumbersome allotment/acquisition procedures. To ensure project feasibility, the
government must ensure that land is available in a timely manner and at competitive prices. Potential sites available
with state industrial bodies suffer from poor connectivity—as they rarely control surrounding infrastructure—and
unavailability of skilled manpower, given their remote locations. With the land acquisition for industrial purposes
becoming tougher in the country, the situation can quickly spiral downwards in the coming years.

Any investment promotion approach needs to give due consideration towards this major barrier. This is an opportunity
for government-owned infrastructure entities to step up. Most infrastructure authorities—including major ports, the
railways, airports and road authorities—own significant land banks that are well connected and are ideal locations to
facilitate manufacturing units in India. For instance, most countries with long coastlines have successfully leveraged
their ports to boost industrialisation. Rotterdam (Netherlands), Antwerp (Belgium), Shenzen (China), Jurong (Singapore)
and Pohang (South Korea) are leading examples of this. For India, this represents an untapped opportunity. For
instance, it is estimated that 80% of the prime industrial land, associated with major ports in India, remains
underutilised. This potential has been formally recognised only recently. In the ports sector, ‘industrialisation led by
ports’ is a major thrust area under the current government. It is estimated that successful industrialisation of port
land alone can mobilise Rs 1 lakh crore of investments and create 100 lakh jobs. To enable this, a slew of reforms has
been undertaken over the last few years, the traditional role of an infrastructure authority has been expanded, and it is
now expected to facilitate industrialisation by all means possible. Flagship projects under ‘Port-led industrialisation’—
special economic zone (SEZ) at Jawaharlal Nehru Port Trust (JNPT) in Navi Mumbai, Smart Industrial Park City (SIPC) at
Paradip and Coastal Economic Unit (CEU), Kandla—have received a strong response from the industry. Indian and
global companies have lined up to take advantage of the excellent connectivity and proximity to major commercial
hubs. The JNPT SEZ project alone is expected to generate over Rs 7,000 crore of investments and over one lakh jobs.

The medium, small and micro enterprises (MSME) segment, most critical to spurring manufacturing capacity
addition and job creation in the country, stands to benefit the most from these projects. The MSME segment has,
traditionally, been the most impacted due to the unavailability of suitable land for expansion. Additionally, this
segment does not have the adequate resources compared to that of larger companies, so it has been difficult to
overcome supply-chain challenges posed by locations that have poor connectivity. Thus, this is the right segment to
target. MSMEs have the required financial capacity, are hungry for growth, need smaller land parcels and do not
expect special incentives for setting up their projects. In comparison, India’s experience with MoUs inked at global
investor summits has been mixed. Most of these deals take a long time to translate into actual on-ground investments,

FOCUS | March 2018 | RA U’S IAS 138


with proposals often being abandoned due to the non-availability of land or a lack of favourable incentives from the
government. To enable infrastructure authorities to accelerate this process of industrialisation, some additional actions
need to be taken. First, investment in infrastructure is required upfront. Power, water, effluent treatment, fibre optics
connectivity, and gas pipelines are priorities. Second, existing land policies need to be more flexible in order to deal
with the complexities of industrial land. For instance, the current practice of allocating all land through tender/auction
process is a big deterrent. Third, expertise for marketing and administering industrial parks/SEZs is a must. And finally,
a change in the mindset is necessary as the focus shifts from land-value maximisation to attracting investments. On
the whole, the effort of government-owned infrastructure entities to promote industrialisation is in the right direction.
Supported by the best policy framework and robust performance monitoring, they can prove to be a game changer in
the effort to stimulate manufacturing in the country.

Key words: manufacturing investments, in Index of Industrial Production, skilled manpower, industrialisation, special
economic zone

Q20. The RBI’s new resolution framework will hasten the NPA recognition cycle, but the bad loan mess
needs attention. Discuss critically.

Stocks and flows Business Line | Indian Economy

The Reserve Bank of India’s latest move to simplify the resolution framework — doing away with all old
restructuring schemes in the process — comes as no surprise, given the pace at which bad loans are surfacing again.
Following the RBI’s first asset quality review (AQR) two years ago, state-owned banks had reported sharp slippages
and a whopping ₹2.7 lakh-odd crore of bad loans were added to the system in fiscal 2016. This had suggested that the
worst was over, but the slowdown in the accretion to bad loans has proved temporary — nearly ₹1.7 lakh crore NPAs
were added in just the first nine months of the current fiscal. Clearly, a significant portion of NPAs had been swept
under the carpet by banks under the guise of various restructuring schemes. The RBI has rightly stepped in to flush out
the rot in banks’ books under CDR, SDR, S4A or 5/25, by withdrawing them and placing them under the new
framework. Banks will now have to begin the resolution process on an account as soon as it is classified as an SMA-0
account — where payments are overdue by 1-30 days — by any one bank within a consortium. This rightly addresses
the key reason behind steep divergences reported by banks in recent times.

Aside from tightening the norms for reporting of default to the central repository, the new framework nudges banks to
act quickly by setting a timeline for resolution. In respect of accounts with aggregate exposure of ₹2,000 crore and
above, lenders will have to draw up a resolution plan within 180 days from March 1, 2018 (or default date as the case
may be), failing which banks will have to refer the case for insolvency under the IBC. The RBI has also left little room for
shaky resolution plans, which will now need the approval of credit rating agencies and will have to deliver results; at
least 20 per cent of the outstanding principal and capitalised interest will have to be repaid for the account to be
upgraded back to ‘standard’.

While the new framework will help hasten recognition of NPAs, there are several other issues that need attention. For
one, banks will have to make higher provisioning — 15 per cent when an asset’s restructured and 50 per cent if
referred to the IBC. With around ₹2 lakh crore of loans likely to come under the revised framework, capital issues could
rankle PSBs yet again. The requirement of all lenders agreeing to the resolution plan could also prove challenging.
Whether the existing infrastructure under the IBC set up will be able to deal with the expected deluge of insolvency
filings is another issue. Above all, the new framework still deals with the stock of the NPA problem and not the flow. A
clear roadmap for the Centre to divest its stake in PSBs and granting more autonomy to bank boards is imperative to
avoid a repeat of the bad loan mess.

Key words: resolution framework, restructuring schemes, asset quality review, CDR, SDR, S4A, 5/25, IBC, NPA

FOCUS | March 2018 | RA U’S IAS 139


Q21. Education can be a great leveller but only if government schools deliver it better. Comment.

Vote on this Times of India | Category: Education and Rights

The district-wise data from the National Achievement Survey (NAS) 2017 is a wake-up call to central and state
governments. It indicates that education in government schools is failing to equip a majority of children for the
academic rigours of higher education or the confidence to acquire skills and pursue gainful employment. And yet the
data also reveals aspirations at work, of girls outshining boys, rural schools bettering urban ones, OBCs outperforming
general category, and Dalit students doing better than others in primary classes in some pockets.

Although experts say those with resources have migrated to private schools leaving mostly OBC, Dalit, Adivasi and poor
students in government schools, this is also a great window of opportunity for weaker sections of society. This urge to
learn and venture outside traditional occupations makes it incumbent upon governments to not let down first
generation learners. Unfortunately, while there has been a great emphasis on assessments in this past decade and we
now have a wealth of data from these studies, it all points to declining learning outcomes.

NAS 2017 shows Class III, V and VII students tested on subjects like math, language and sciences suffer declining
learning outcomes, with higher classes scoring fewer marks. Weaknesses in primary education are getting amplified as
students move to higher classes. Clearly, more teachers are needed, they need better training, and curriculum and
study material must converge with capacities of teachers and students. But is any of this being done? The time for
assessment is over; implementation must start.

The elementary decision to crack down on cheating forced 10 lakh UP board students to drop out of Class X and XII
exams. But stopping mass cheating was the easier part. Such mass dropouts underline a crying need to improve
teaching and learning systems, especially as technological disruption through automation and robotics is poised to
eliminate many lakh unskilled jobs. We also have the likes of 16-year-old Harshita Arora from Saharanpur, UP, who left
school to pursue alternative computer education and developed a popular mobile app monitoring cryptocurrency price
fluctuations. Her story suggests all the potential that can be unlocked if the education system is rapidly upgraded. If
funding, institutional will, and trained teachers can plug into aspirations, results will show. Education, like livelihoods,
must become an election issue.

Keywords: 1. National Achievement Survey (NAS) 2017

Q22. The Armed forces should remain neutral and should not interfere in politics. Comment.

Loose talk Times of India | Category: Security

Army chief General Bipin Rawat found himself at the centre of a political controversy due to remarks made at a public
platform. Speaking at a seminar on the northeast organised at DRDO Bhawan, Rawat alleged a planned influx of
people from Bangladesh into the north-eastern states as part of a proxy war being waged by Pakistan with support
from China. Elaborating on his point, the army chief pointed to the fast growth of Badruddin Ajmal’s All India United
Democratic Front (AIUDF) party in Assam as compared to BJP in the 1980s.

Needless to say this was totally unnecessary. As a serving army chief, Rawat ought to refrain from making public
political comments. In that sense, Ajmal is right in questioning why the army chief should be concerned about a
legitimate political party rising faster than BJP. Rawat’s choice of words, irrespective of actual intentions, creates the
impression that he views AIUDF as Chinese-Pakistani proxies. Moreover, migration takes place primarily for economic
reasons, and it is a stretch to say that China or Pakistan is somehow behind migration from Bangladesh.

Rawat had been criticised earlier for talking about the prospect of a two-front war. That criticism was unjust and he
was perfectly within his remit there, as the head of the army has the responsibility to anticipate all permutations of
military threats facing the nation. But it is not part of his job to meddle in politics; that must be avoided at all costs.
Hitherto the Indian army has been known and respected for its professionalism. Commenting on a political party

FOCUS | March 2018 | RA U’S IAS 140


muddies waters and creates opportunities to cast aspersions on the institution of the army. Rawat must strictly
maintain the army’s political neutrality – else we would become a bit like Pakistan.

Keywords: 1. All India United Democratic Front (AIUDF) party

Q23. Political will is needed to bring down India’s shameful levels of new-born mortality. Suggest
measures for improvement.

Save our babies Times of India | Category: Social Justice

Children do not get a fair start in this country. Just one in a thousand babies die during the first month in Japan, but in
India 25.4 do. One might argue that new-born survival is closely linked to a country’s income level. But that doesn’t
explain why UNICEF has found that India ranks the 12th worst even among 52 lower middle income countries. Pakistan
ignominiously tops this table but our other neighbours fare much better, with Sri Lanka at an exemplary 5.3 and
Bangladesh at 20.1 – proving that progress is possible even where resources are scarce. So much for Indian leadership
even in South Asia. It’s not just about per capita income; political will can make a major difference.

This is also why India sees such different outcomes in different states. Manipur has scored the lowest infant mortality
rate three years running, despite battling insurgency and a moribund economy. Health schemes come and come with
every budget, but they deliver only in places where they are implemented. In some states measures like raising a cadre
of accredited social health activists (Asha workers) to reach women and new-borns have borne fruit. In Manipur these
local health workers have successfully facilitated antenatal health check-ups, institutional deliveries and proper infant
care.

But that too many new-borns across the country are still falling through the cracks underlines the necessity of better
implementation of our myriad healthcare schemes – including in populous states like Uttar Pradesh, which hovers
around India’s worst infant and under-five mortality rates. Many schemes are also crying for a rewrite. For example,
the Pradhan Mantri Matru Vandana Yojana (PMMVY) providing maternity benefits of Rs 5,000 per child restricts these
benefits to one child per woman, the first living child. On top of this Aadhaar verification is becoming mandatory at
every step, both the mother’s and her husband’s (who may not be around). Government must stop playing Scrooge
with maternity entitlements.

The UNICEF report emphasises two critical steps for progress: increasing access to affordable healthcare and
improving the quality of that care. Too many corners of India are yet to see decent primary healthcare: all too often
healthcare centres lack doctors, basic drugs and sanitation. Government at all levels needs to take far more seriously
the health of India’s mothers and their new-borns.

Keywords: 1 UNICEF, 2. Pradhan Mantri Matru Vandana Yojana (PMMVY)

Q24. PNB heist shows up weakness in the banking sector beyond the handiwork of a few fraudsters. Give
measures to strengthen the banking sector in our country.

Shaky foundations Times of India | Category: Economy


As details of the Rs 11,400 crore fraud perpetrated at Punjab National Bank emerge it is increasingly apparent that the
heist wasn’t the handiwork of a few fraudsters alone but was enabled by a wider system breakdown, with its
gatekeepers sleeping. Nor will the Centre be able to escape its share of blame for the fraud. While it began in 2011
when UPA was in power, it reached a crescendo during 2017-18 according to CBI’s FIR in the case. This is the first mega-
scam to occur under the watch of the current NDA government, and it will be unable to disown responsibility for this
one.

FOCUS | March 2018 | RA U’S IAS 141


For this and other reasons – linkages within the banking sector mean that problems in a single bank can quickly spill
over – it is important for both government, as policy maker and majority shareholder in commercial banking, and
Reserve Bank of India to quickly address these issues. It turns out that PNB had not integrated SWIFT, a channel used
for overseas transactions, with its core banking solution. This loophole may not be confined to PNB alone; RBI should
have cracked the whip a long time ago. It is extraordinary that the heist continued for so many years without being
picked up by the bank’s oversight systems, a pointer to how weak they are.

RBI’s financial stability report in 2017 observed that frauds were increasing in the financial sector and they are
partially linked to the manner of bad loan reporting. This leads to questions about the efficacy of bank boards and
auditors. It is possible that a bank’s payment structure for its top management incentivises underreporting of bad
loans. This is where other layers of oversight ought to protect shareholders.

The PNB case shows that government has failed yet again as both policy maker and majority shareholder in the
banking system. RBI too has been found wanting in its role as banking regulator. If RBI’s banking supervision wing is
not up to scratch, stability of banks cannot be guaranteed. Moreover, India’s gems and jewellery sector will be collateral
damage if it faces difficulty in raising credit from now on. The loss to the economy is likely to be higher than the size of
the heist itself. But authorities can act now to limit further damage and strengthen the system for the future.

Keywords: 1. SWIFT 2. RBI’s financial stability report

Q25. SC push for transparency by asking election candidates to declare sources of income is right step in
bringing accountability of the parties and the candidates. Critically analyse.

Ballot to billions Times of India | Category: Social Justice

The Supreme Court judgment mandating that those contesting elections must reveal their sources of income is a
welcome step towards fostering greater transparency in the electoral arena. Currently, those contesting elections must
file an affidavit on behalf of self, spouse and dependents specifying PAN numbers, income declared in tax returns,
movable assets like bank accounts and shares, immovable assets like building and jewellery, and financial liabilities like
loans. Extending this to also declare sources of income will help government and civil society deduce disproportionate
rise of income or assets of lawmakers, which may coincide with periods in power and could be a result of misuse of
that power.

SC has ruled, rightly, that voters have a fundamental right to make informed choices when electing their
representatives. Knowing a candidate’s criminal or financial background can offer key insights to voters about those
they vote for. While India’s per capita income inches its way to a lakh, politicians have leapfrogged into the crorepati
class. An Association for Democratic Reforms analysis of election affidavits revealed that 442 Lok Sabha MPs elected in
2014, 52 of 68 Himachal Pradesh MLAs and 141 of 182 Gujarat MLAs who were recently elected declared assets of over
a crore each; their true assets could well be much higher.

To put this figure in perspective, the per capita income of India is Rs 86,000, that of Gujarat is Rs 1.22 lakh and
Himachal Pradesh is Rs 1.14 lakh at constant 2011-12 prices. Supreme Court has also suggested a law disqualifying
those with disproportionate assets. If the government is serious about checking corruption and nepotism, it must pass
such a law forthwith. With a generous supply of funds through MPLAD/ MLALAD schemes and significant clout in their
constituencies, there are multiple avenues for wrongdoing by lawmakers which the government must plug.

Supreme Court has left it to the Centre to set up a “permanent mechanism” to keep tabs on lawmakers’ wealth.
Disproportionate assets cases against politicians take years to culminate (eg, Jayalalithaa and Sasikala) or are wielded
covertly to ensure opposition politicians toe the ruling party line. Such perversions have led people to question the
arbitrary salary hikes that MPs and MLAs are granting themselves. Resistance to public service for personal enrichment
will keep growing. Unless politicians act to isolate rotten apples in their midst, the credibility of the entire political class
is at stake.

Keywords: 1. Association for Democratic Reforms

FOCUS | March 2018 | RA U’S IAS 142


Here, we are sharing case studies for self- practice. These
Case Studies case studies are drawn from various aspects of professional
and personal experiences, and are helpful for General
For mains Gs paper IV Studies- Paper IV.
Do practice them!

Case 1: You are recently posted as district development officer of a district. Shortly thereafter you found that
there is considerable tension in the rural areas of your district on the issue of sending girls to schools.
The elders of the village feel that many problems have come up because girls are being educated and they are
stepping out of the safe environment of the household. They are of the view that the girls should be quickly
married off with minimum education. The girls are also competing for jobs after education, which have
traditionally remained in boys’ exclusive domain, adding to unemployment amongst male population.
The younger generation feels that in the present era, girls should have equal opportunities for education and
employment, and other means of livelihood. The entire locality is divided between the elders and the younger lot
and further sub-divided between sexes in both generations. You come to know that in Panchayat or in other local
bodies or even in busy crossroads, the issue is being acrimoniously debated.
One day you are informed that an unpleasant incident has taken place. Some girls were molested, when they
were en route to schools. The incident led to clashes between several groups and a law and order problem has
arisen. The elders after heated discussion have taken a joint decision not to allow girls to go to school and to
socially boycott all such families, which do not follow their dictate.
Q. What steps would you take to ensure girls’ safety without disrupting their education?
Q. How would you manage and mould matriarchic attitude of the village elders to ensure harmony in the
inter-generational relations?

Case 2: You are a young, aspiring and sincere employee in a Government office working as an assistant, to the
director of your deportment. Since you’ve joined recently, you need to learn and progress. Luckily your superior
is very kind and ready to train you for your job. He is a very intelligent and well-informed person having
knowledge of various departments. In short, you respect your book and are looking forward to learn a lot from
him.
Since you’ve good tuning with the boss, he started depending on you. One day due to ill health he invited you at
his place for finishing some urgent work. You reached his house and you heard shouting noises before you could
ring the bell. You waited for a while. After entering, boss greeted you and explained the work. But you were
constantly disturbed by the crying of a woman. At last, you inquired with the boss but his answer did not satisfy
you. Next day, you were compelled to inquire further in the office and found out that his behavior is very had at
home with his wife. He also heath up his wife.
His wife is not well educated and is a simple woman in comparison to her husband. You see that though your
boss is a nice person in the office, he is engaged in domestic violence at home. In such a situation, you are left
with the following options. Analyse each option with its consequences.
Q. Just ignore thinking about it because it is their personal matter.
Q. Report the case to the appropriate authority.
Q. Your own innovative approach towards the situation.

FOCUS | March 2018 | RA U’S IAS 143


Case 3: You are working as an Executive Engineer in the construction cell of a Municipal Corporation and are
presently in-charge of the construction of a flyover. There are two Junior Engineers under you who have the
responsibility of day-to-day inspection of the site and are reporting to you, while you are finally reporting to the
Chief Engineer who heads the cell. While the construction is heading towards completion, the Junior Engineers
have been regularly reporting that all construction is taking place as per design specifications. However, in one of
your surprise inspections, you have noticed some serious deviations and lacunae which, in your opinion, are
likely to affect the safety of the flyover. Rectification of these lacunae at this stage would require a substantial
amount of demolition and rework which will cause a tangible loss to the contractor and will also delay
completion. There is a lot of public pressure on the Corporation to get this construction completed because of
heavy traffic congestion in the area. When you brought this matter to the notice of the Chief Engineer, he advised
you that in his opinion it is not a very serious lapse and may be ignored. He advised for further expediting the
project for completion in time. However, you are convinced that this was a serious matter which might affect
public safety and should not be left unaddressed.
What will you do in such a situation? Some of the options are given below. Evaluate the merits and demerits of
each of these options and finally suggest what course of action you would like to take, giving reasons.
1. Follow the advice of the Chief Engineer and go ahead.
2. Make an exhaustive report of the situation bringing out all facts and analysis along with your own
viewpoints stated clearly and seek for written orders from the chief Engineer.
3. Call for explanation from the Junior Engineers and issue orders to the contractor for necessary correction
within targeted time.
4. Highlight the issue so that it reaches superiors above the Chief Engineer.
5. Considering the rigid attitude of the Chief Engineer, seek transfer from the project or report sick.

FOCUS | March 2018 | RA U’S IAS 144

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