You are on page 1of 83

OP-ED

JUNE 2022

www.civilsdaily.com 1
OP
-ED
Table of Contents
Economics International Relations
For India, a lesson in food security from Sri Lanka 5 Why India must engage Taliban 55
GST Council must uphold fiscal federalism 5 India-Pakistan ties and the mirror of 2019 55
How to keep inflation under control 6 India needs a forward-looking
Monetary tightening and its impact on growth 7 strategy on Pakistan 56
India is not the fastest growing big economy 9 Indus Waters Treaty (IWT): An enduring
The way forward on 5G 10 agreement bridging India-Pakistan ties 57
Rising global food prices: Causes and Solution 11 Indo-Pacific Economic Framework
Coal Shortages in India 13 presents opportunities 58
Freebie model of Governance 14 Lessons from the Ukraine crisis price shock 59
Oil palm 16 China wants a larger BRICS to challenge
Recruitment of 10 lakh people in “mission mode 18 the existing international order 60
Communication gap between the MPC and RBI 20 India-Iran Relations 61
Agreement on Fisheries Subsidies (AFS) 22 In Sri Lankan crisis, a window of
Need for transparency in RBI’s policy making 23 economic opportunity 63
Fertlizer subsidy issue 24 India and Australia 64
online marketplace 25 BRICS 66
Downturn in tech startup ecosystem 27 Caution in buying Russian cruide 70
How Hanoi and New Delhi are fortifying

Governance defence ties


G7 72
71

Malnutrition in India is a worry The significance of PM’s visit to the UAE 75


in a modern scenario 30

Security Issues
ASHA Program 31
The problem with putting the civil
services on a pedestal 33 Analysing the Agnipath scheme 77
Healthcare in India is ailing. Here is how to fix it 34 Need for a National Security Doctrine 78
The Jal Jeevan and Swachh Bharat Missions
are improving people’s well-being
CoWIN as a repurposed digital platform 37
35
Enviro & Biodiversity
Child Marriage in India 38 Issues with the Environmental Performance
Issues with use of NMMS app in NREGA 42 Index (EPI) 81
Land Degradation 82

Polity
The sedition law must go 45
A judicial course that calls for introspection 46
Implications of GST Council ruling 47
Procedural gaps in death penalty sentencing 48
Parliament & Women 49
Upper House, a question 51
Democratic Backsliding in America 51
The anti-defection law political facts, legal fiction 53
ECONOMICS

4 OP-ED | JUNE 2022


FOOD PROCUREMENT AND DISTRIBUTION - PDS & NFSA, SHANTA KUMAR
COMMITTEE, FCI RESTRUCTURING, BUFFER STOCK, ETC.

For India, a lesson in food security from Sri Lanka


Economics | GS3: PDS, Buffer Stock & Food Security 
Note4Students | From UPSC perspective, the following things are important :
Prelims level : Not much
Mains level : Paper 3- Food security

Context • Why is Saudi Arabia taking such pains to produce its own milk?
India needs to have a strategy of self-reliance in basic foods, • The answer is food security.
including edible oils. • The Saudis other Persian Gulf countries have also copied the
Almarai model are prepared to pay any price when it comes to
ensuring the availability of basic food like milk.
Contrasting cases of Sri Lanka and Saudi Arabia
• S ri Lanka, a country with 21.5 million population imported
dairy products valued at $333.8 million in 2020 and $317.7 Lessons for India: Reducing import dependence on
million in 2021. edible oil
• Th
 e island nations imports of whole milk powder (WMP) alone • I ndia annually imports 13.5-14.5 million tonnes of vegetable
were 89,000 tonnes and 72,000 tonnes in these two years. oils, again roughly 60 per cent of its total consumption.
• Th
 e 89,000 tonnes of powder imported in 2020 would have, • Low international prices meant that the import bill, though
thus, produced almost 2.1 million litres per day (MLPD) high, fell from $9.85 billion in 2012-13 to $9.67 billion
equivalent of milk. in 2019-20.
• Th
 is is as against the 1.3 MLPD that Sri Lanka produces from • However, in the last couple of years, retail prices of most oils
its own cows and buffaloes. more than doubled
• I t translates into an import dependence of over 60 per cent. • The value of India’s vegetable oil imports surged to a record $19
• A t the other end, we have Saudi Arabia, home to over 35 million billion in 2021-22.
inhabitants (including immigrants) and also the worlds largest
vertically integrated dairy company. Conclusion
• A lmarai Company has six dairy farms producing more than 3.5 As a country with a population many times that of Sri Lanka and
MLPD of milk. Saudi Arabia, India needs to have a strategy of self-reliance in
• Th
 e animals are sourced from the US and Europe. basic foods.
• Th
 e entire feed and also forage given to them are procured
from abroad.

GOODS AND SERVICES TAX (GST)

GST Council must uphold fiscal federalism


Economics | GS3: Indian Economy 
Note4Students | From UPSC perspective, the following things are important :
Prelims level : Article 279A
Mains level : Paper 3- Fiscal federalism in GST Council

Context • This article is in sharp contrast to the constitutional scheme


The recent ruling of the Supreme Court held that the states were that prevailed till 2017.
free to use means of persuasion ranging from collaboration to • It clearly demarcated taxing powers between the Centre and
contestation. states with no overlaps.
• After 2017, several central and state levies were
subsumed into GST.
Simultaneous or concurrent powers under
• Each state was to have its own GST Act, all of them being
Article 246A almost identical to the Central GST Act.
• A
 rticle 246A confers simultaneous or concurrent powers • Inter-state supplies and imported goods are liable to IGST.
on Parliament and the state legislatures to make laws
relating to GST.

www.civilsdaily.com 5
Composition of GST Council • The Supreme Court rightly noted that several sections in
• Th
 e GST Council has the Union finance minister as the the state GST laws, CGST and in IGST, cast a duty even on
chairperson and the Union minister of state in charge of dissenting states to issue notifications to implement the
revenue or finance as a member. recommendations of the GST Council.
• C
 entre has one-third voting power, 31 states (including two
Union Territories) share the remaining two-thirds of the vote. Observations on federalism
• Th
 e GST Council has a total of 33 members. • D elving into legislative history, the court ruled that a draft
• O
 ut of a total of 33 votes, 11 belong to the Centre and 22 Article 279B, which provided for a GST Disputes Settlement
votes are shared by 31 states/UT, with each state/UT having a Authority, was omitted because it would have effectively
0.709 vote. overridden the sovereignty of Parliament and the state
• A
 ny decision of the GST Council requires a three-fourth legislatures, and diminished the fiscal autonomy of the states.
majority or a minimum of 25 votes. • It was desirable, the Court said, to have some level of friction,
• A
 s the Centre has 11 votes, it requires an additional 14 votes. some amount of state contestation, some deliberation-
• U
 nlike so many statutes, Article 279A has made no provision generating froth in our democratic system.
to make the decision of the majority binding on the • Putting to rest any controversy, the court held that
dissenting states. the recommendations of the GST Council had only a
 aragraph 2.73 of the Select Committee Report on the
• P persuasive value.
122nd Constitution (Amendment) Bill, 2014, noted that this • To regard them as binding edicts would disrupt fiscal federalism
voting pattern was to maintain a fine balance as, in a federal because both the Union and states were conferred equal power
constitution, the dominance of one over the other was to be to legislate on GST.
disallowed. • Rule-making power bound by recommendations of GST
Council: The Court held that the state governments and
Role of GST Council Parliament, while exercising their rule-making powers under
 nder Article 279A, the GST Council has to make
• U the provisions of the State GST Acts, CGST & IGST Acts, are
recommendations on various topics including the tax rate and bound by the recommendations of the GST Council.
exemptions. • States can amend GST laws: But even this did not mean
• Th
 e Union of India argued that the constitutional architecture that all recommendations of the GST Council are binding on
showed that Articles 246A and 279A, when read together, state legislatures or Parliament to enact primary pieces of
made the GST Council the ultimate policy-making and decision- legislation on GST.
making body for framing GST laws. • In effect, states can amend their GST laws if they so choose.
• Th
 e GST Council was unique and incomparable to any other
constitutional body and its recommendations would override Way forward
the legislative power of Parliament and state legislatures. • I f the GST Council meets periodically as mandated and there is
• N
 either of them could legislate on GST issues independent of active participation of the states in making recommendations,
the recommendations of the GST Council. no state will oppose a recommendation that has been carefully
• Th
 e argument went further: On a combined reading of Article deliberated and is in the national interest.
279A, the provisions of the IGST and CGST Acts and the
recommendations of the GST Council were transformed into
Conclusion
legislation.
Indeed, there is little chance of cracks developing in the GST
edifice as long as the spirit of cooperative and collaborative
federalism prevails.

AGRICULTURAL SECTOR AND MARKETING REFORMS - ENAM, MODEL APMC ACT, ECO SURVEY RECO, ETC.

How to keep inflation under control


Economics | GS3: Agriculture and related issues 
Note4Students | From UPSC perspective, the following things are important :
Prelims level : Not much
Mains level : Paper 3- Tackling inflation

Context The economy now seems to be largely out of the shadow of


Covid-19, and only a notch better than in 2019-20. But the big
question remains: can India rein in the raging inflation that is at
7.8 per cent (CPI for April 2022), with food CPI at 8.4 percent,
and WPI at more than 15 per cent?

6 OP-ED | JUNE 2022


Need for bold steps on three fronts to • But abrupt export bans are poor trade policy and reflect only
tackle inflation the panic-stricken face of the government.
• U nless bold and innovative steps are taken at least on three • A more mature approach to filter exports would be through a
fronts, GDP growth and inflation both are likely to be in the gradual process of minimum export prices and transparent
range of 6.5 to 7.5 per cent in 2022-23. export duties for short periods of time, rather than abrupt
• 1 ] Tightening of loose monetary policy : The Reserve Bank of bans, if at all these are desperately needed to favour consumers.
India (RBI) is mandated to keep inflation at 4 per cent, plus- • Liberal import policy: A prudent solution to moderate
minus 2 per cent. inflation at home lies in a liberal import policy, reducing
 e RBI has already started the process of tightening
• Th tariffs across board.
monetary policy by raising the repo rate, albeit a bit late.
• I t is expected that by the end of 2022-3, the repo rate will be at Way forward
least 5.5 per cent, if not more. • I f India wants to be atmanirbhar (self-reliant) in critical
• I t will still stay below the likely inflation rate and therefore commodities where import dependence is unduly high, it must
depositors will still lose the real value of their money in banks focus on two oils crude oil and edible oils.
with negative real interest rates. • In crude oil, India is almost 80 per cent dependent on imports
 at only reflects an inbuilt bias in the system in favour of
• Th and in edible oils imports constitute 55 to 60 per cent of our
entrepreneurs in the name of growth and against depositors, domestic consumption.
which ultimately results in increasing inequality in • In both cases, agriculture can help.
the system. • Ethanol production: Massive production of ethanol from
• 2 ] Prudent fiscal policy: Fiscal policy has been running loose sugarcane and maize, especially in eastern Uttar Pradesh and
in the wake of Covid-19 that saw the fiscal deficit of the Union north Bihar, where water is abundant and the water table is
government soar to more than 9 per cent in 2020-21 and 6.7 replenished every second year or so through light floods, is the
per cent in 2021-22, but now needs to be tightened. way to reduce import dependence in crude oil.
• G overnment needs to reduce its fiscal deficit to less than 5 • Palm plantation: In the case of edible oils, a large programme
per cent, never mind the FRMB Acts advice to bring it to 3 per of palm plantations in coastal areas and the northeast is the
cent of GDP. right strategy.
• H owever, it is difficult to achieve when enhanced food and
fertiliser subsidies, and cuts in duties of petrol and diesel will Conclusion
cost the government at least Rs 3 trillion more than what was We need to invest in raising productivity, making agri-markets
provisioned in the budget. work more efficiently.
• 3 ] Rational trade policy : Export restrictions/bans go beyond
agri-commodities, even to iron ore and steel, etc. in the name of
taming inflation.

ECONOMIC INDICATORS AND VARIOUS REPORTS ON IT- GDP, FD, EODB, WIR ETC

Monetary tightening and its impact on growth


Economics | GS3: Indian Economy 
Note4Students | From UPSC perspective, the following things are important :
Prelims level : Core inflation
Mains level : Paper 3- Inflation challenge

Context • The amended RBI Act, 1934 also provides for the inflation
A rate hike in themonetary policy committees June meeting was target (4% +-2%) to be set by the Government of India, in
a foregone conclusion after the spike ininflationand an off-cycle consultation with the Reserve Bank, once in every five years.
surprise interest rate hike on May 4. • Thus, it is a key determinant of inflation and growth

What is Monetary policy? Various Policy Stances of RBI


• M onetary policy refers to the policy of the central bank with
regard to the use of monetary instruments under its control Accommodative:
to achieve the goals specified in the Act. • A n accommodative stance means the central bank is prepared
• Th
 e primary objective of the RBIs monetary policy is to to expand the money supply to boost economic growth.
maintain price stability while keeping in mind the objective • The central bank, during an accommodative policy period, is
of growth. willing to cut the interest rates. A rate hike is ruled out.
• Price stability is a necessary precondition to sustainable growth.

www.civilsdaily.com 7
 e central bank typically adopts an accommodative policy
• Th How US Fed’s actions affect India?
when growth needs policy support and inflation is not the • I ndia is not insulated.
immediate concern. • Capital outflow: The headwinds now are stronger than in 2013
and we have seen net capital outflows since October 2021.
Neutral: • S&P Global expects the US federal funds rate to be hiked to
 neutral stance suggests that the central bank can either cut
• A 3-3.25 per cent in 2023, higher than the pre-pandemic level,
rate or increase rate. and highest since early 2008.
 is stance is typically adopted when the policy priority is
• Th • Despite a strong forex hoard, the RBI has had to deploy
equal on both inflation and growth. monetary policy to mute the impact of the Feds actions.
• Th
 e guidance indicates that the market can expect a rate action
on either way at any point. Inflation and its impact
• U pward pressure on food inflation: The pressure on food
Hawkish Stance inflation has increased owing to the impact of the freak
 hawkish stance indicates that the central banks top priority
• A heatwave on wheat, tomatoes and mangoes, which is driving
is to keep the inflation low. prices higher.
 uring such a phase, the central bank is willing to hike
• D • This is on top of rising input costs for agricultural production,
interest rates to curb money supply and thus reduce the global surge in food prices and the expected sharper than
the demand. usual rise inminimum support price.
• A
 hawkish policy also indicates tight monetary policy. • Fuel inflation will remain high, duty cuts notwithstanding, as
• W
 hen the central bank increases rates or ‘tightens’ the global crude prices remain volatile at elevated levels.
monetary policy, banks too increase their rate of interest on • Goods (despite only partial pass-through of input costs) are
loans to end borrowers which, in turn, curbs demand in the witnessing higher inflation than services.
financial system. • Thats because services faced tighter restrictions during
theCovid-19waves, restricting their consumption and the
pricing power of providers as well.
Calibrated Tightening:
• Service categories that are mostly regulated, such as public
 alibrated tightening means during the current rate cycle, a
• C
transport, railways, water and education, have over 50 per cent
cut in the repo rate is off the table.
weight in core services.
 owever, the rate hike will happen in a calibrated manner.
• H
• However, prices of discretionary services such as airlines,
• Th
 is means the central bank may not go for a rate increase
cinema, lodging and other entertainment are rising.
in every policy meeting but the overall policy stance is tilted
• Transportation-related services have seen the sharpest rise in
towards a rate hike.
the past six months due to fuel price increases.
• Th
 is can happen outside the policy meetings as well if the
• Impact on the poor: For those at the bottom of the pyramid,
situation warrants.
high inflation hits harder because energy and food are a big
chunk of their consumption basket.
Reasons fast forwarding of interest rate hike
• 1 ] Broad based inflation: A confluence of factors has pushed
Growth prospects
inflation higher and made it persistent and broad-based.
• S &P Global has recently cut the growth outlook for major
• 2 ] Policy rates are still negative: Even with this hike, the repo
economies for 2022 that of the US to 2.4 per cent from 3.2 per
rate, the signalling tool for bank interest rates, is still below
cent, for Eurozone to 2.7 per cent from 3.3 per cent earlier, and
pre-pandemic levels.
for China to 4.2 per cent from 4.9 per cent.
• Th
 e real policy rate (repo rate less expected inflation) remains
• This will hurt exports which are very sensitive to
negative and has some distance to cover before it reaches
global demand.
positive territory where the RBI would like to see it.
• 3 ] Lag in effect: Monetary policy impacts growth, and
thereafter, inflation with a lag. Monetary policy actions
• T o control inflation, the RBI needed to act faster by front • N ot all aspects of supply-driven inflation can be addressed via
loading rate hikes. monetary policy.
• 4 ] Elevated inflation expectations: The risk of inflation • So the authorities are complementing monetary policy actions
expectations getting unmoored had risen. by using the limited fiscal space to cut duties and extend
• H ousehold and business inflation expectations remain elevated, subsidies to the vulnerable.
as indicated by the RBIs inflation expectations survey of
households. Conclusion
• 5 ] Interest rate hike in the US: The aggressive stance of the US Monetary tightening impacts growth with a lag of at least 3-4
Federal Reserve and ensuing tightening financial conditions. quarters and the fact that real interest rates are negative and
• I ndia is better placed today than in 2013 to face the Feds borrowing rates still below pre-pandemic levels, implies monetary
actions with a stronger forex shield. policy is unlikely to be growth-restrictive for this year.

8 OP-ED | JUNE 2022


ECONOMIC INDICATORS AND VARIOUS REPORTS ON IT- GDP, FD, EODB, WIR ETC

India is not the fastest growing big economy


Economics | GS3: Indian Economy 
Note4Students | From UPSC perspective, the following things are important :
Prelims level : GDP and inflation
Mains level : Paper 3- India’s growth rate

Context • It is simply assumed that the limited data available for the
TheProvisional Estimates of Annual National Income in 2021- organised sector can be used to act as a proxy.
22just released show thatGDP grew 8.7%in real terms and 19.5% • The non-agriculture unorganised sector is represented by the
in nominal terms (including inflation). It makes India the fastest organised sector.
growing major economy in the world. • Changes in non-agriculture unorganised: The method using
the organised sector to proxy the unorganised non-agriculture
sector may have been acceptable before demonetisation (2016)
What data implies but is not correct since then.
• J ust 1.51% larger: Provisional Estimates of Annual National
• The reason is that the unorganised non-agriculture sector
Income in 2021-22 also indicate that, the real economy is
suffered far more than the organised sector and more so during
1.51% larger than it was in 2019-20, just before the novel
the waves of the pandemic.
coronavirus pandemic hit the world.
• Shift in demand to the organised sector: Large parts of
• I n nominal terms it is higher by 17.9%.
the unorganised non-agriculture sector have experienced a
• I nflation: These numbers imply that the rate of inflation was
shift in demand to the organised sector since they produce
10.8% in 2021-22 and 16.4% between the two years, 2019-20
similar things.
and 2021-22.
• This introduces large errors in GDP estimates since official
• A lmost no growth: This picture implies almost no growth and
agencies do not estimate this shift.
high inflation since the pre-pandemic year.
• All that is known is that the Micro, Small and Medium
• S o, the tag of the fastest growing economy means little.
Enterprises (MSME) sector has faced closures and failures.
• Q uarterly growth rate: The quarter to quarter growth
• If GDP data are incorrect, data on its components private
currently may give some indication of the present rate
consumption and investment must also be incorrect.
of growth.
• Further, the ratios themselves would have been impacted
• I n 2020-21, the quarterly rate of growth increased
by the shock of the lockdown and the decline of the
through the year.
unorganised sectors.
• I n 2021-22, the rate of growth has been slowing down.
• Private consumption data is suspect since according to the
• O f course in 2020-21, the COVID-19 lockdown had a severe
data given by the Reserve Bank of India which largely captures
impact in Q1 (-23.8%); after that the rate of growth
the organised sector, consumer confidence throughout 2021-
picked up.
22 was way below its pre-pandemic level of 104 achieved in
• I n 2021-22, the rate of growth in Q1 had to sharply
January 2020.
rise (20.3%).
• In brief, neither the total nor the ratios are correct.
• I gnoring the outliers in Q1, growth rates in 2021-22 have
sequentially petered out in subsequent quarters: 8.4%,
5.4% and 4.1%. Possible corrections
• G oing forward, while the lockdown in China is over, the war- • I n the best possible scenario, assume that the organised sector
related impact is likely to persist since there is no end in sight. (55% of GDP) and agriculture (14% of GDP) are growing at
• Th
 us, price rise and impact on production are likely to persist. the official rate of growth of 8.2% and 3%, respectively.
• Then, they would contribute 4.93% to GDP growth.
• The non-agriculture unorganised component is declining for
Issues with the data two reasons: first, the closure of units and the second the shift
• Th
 e issue is about correctness of data.
in demand to the organised sector.
• Th
 e annual estimates given now are provisional since complete
• Even if 5% of the units have closed down this year and 5%
data are not available for 2021-22.
of the demand has shifted to the organised sector, the
• Th
 ere is a greater problem with quarterly estimates since very
unorganised sector would have declined by about 10%;
limited data are available for estimating it.
the contribution of this component to GDP growth would
• N
 o data for Q1 of 2020-21: The first issue is that during
be -3.1%.
2020-21, due to the pandemic, full data could not be
collected for Q1.
• N
 o data for agriculture: Further, for agriculture, quarterly data Conclusion
assumes that the targets are achieved. Clearly, recovery is incomplete and India is not the fastest
 griculture is a part of the unorganised sector.
• A growing big economy of the world.
 ery little data are available for it but for agriculture neither
• V
for the quarter nor for the year.

www.civilsdaily.com 9
TELECOM AND POSTAL SECTOR - SPECTRUM ALLOCATION, CALL DROPS, PREDATORY PRICING, ETC

The way forward on 5G


Economics | GS3: Effects Of Liberalization On The Economy, Changes In Industrial Policy and their effects on Industrial Growth 
Note4Students | From UPSC perspective, the following things are important :
Prelims level : Not much
Mains level : Paper 3- Duopoly threat in India’s telecom sector

Context • As a part of its support package for the telecom sector,
The near-death of competition signalled by the incipient exit of in October 2021, it dispensed with the requirement of
Vi late last year pushed the Department of Telecommunications performance bank guarantees required earlier as security.
(DoT) to announce steps to prevent the premature exit of a • It increased the tenure of spectrum holding from 20
sagging operator. to 30 years.
• It allowed for the surrender of the unutilised or underutilised
spectrum after 10 years.
About 5G • Most importantly removed the levy of spectrum
• 5 G is the 5th generation mobile network.
usage charges.
• I t is a new global wireless standard after 1G, 2G, 3G, and
4G networks.
• 5 G can be significantly faster than 4G, delivering up to Why competitive telecom market is important?
20 Gigabits-per-second (Gbps) peak data rates and 100+ • K ey to achieving digital ambitions : A competitive telecom
Megabits-per-second (Mbps) average data rates. sector is fundamental to realising India’s digital ambitions.
• 5 G enables a new kind of network that is designed to connect • Innovation: Monopolies have no incentive to innovate.
virtually everyone and everything together including • Investment: The competition will guarantee that operators find
machines, objects, and devices. it attractive to invest in network infrastructure upgradation
• 5 G wireless technology is meant to deliver higher multi-Gbps and offer consumers a wide range of innovative service options.
peak data speeds, ultra low latency, more reliability, massive • Source of revenue: A competitive telecom sector would be an
network capacity, increased availability, and a more uniform indirect source of tax revenue as well.
user experience to more users. • How to make market competitive? Competition cannot be
• H igher performance and improved efficiency empower new willed into the sector.
user experiences and connects new industries. • It needs careful nurturing, assiduous fostering and regulatory
• W ith high speeds, superior reliability and negligible latency, 5G neutrality.
will expand the mobile ecosystem into new realms.
• 5 G will impact every industry, making safer transportation, Way forward on 5G
remote healthcare, precision agriculture, digitized logistics and • S tructural changes: While the package may have prevented the
more a reality. exit of Vi from the market, to embed competition within the
sector, structural changes are necessary.
India’s telecom sector: From monopoly to hyper- • The imminent 5G networks demand massive investment and
sophistication of operations.
competition to duopoly
• 1] Level playing field: This will not be achieved unless
• I ndia’s telecom market has seen monopoly as well as hyper-
the playing field is level across the relevant operators and
competition.
honest incentives are provided to operators to embrace new
• T wenty-five years ago, the government alone could
technology.
provide services.
• 2] Change the spectrum allocation method: There is no
• T echnology and deregulation: In the following years, the
doubt that spectrum auctions have served India well in the
combined forces of technology and deregulation helped break
past due to the acrimonious political economy associated with
the shackles of public sector dominance despite the latters stiff
administrative spectrum assignment, including First Come
resistance
First Serve (FCFS) method.
• I n the following years, there were nearly a dozen competing
• The auction regime worked well when demand exceeded supply,
operators. Most service areas now have four players.
but if there is an adequate quantity of spectrum for everyone,
• H owever, the possible exit of the financially-stressed
that constraint would not exist.
Vodafone Idea would leave only two dominant players-Airtel
• Administrative assignments can thus be considered once again.
and Jio in the telecom sector.
• 3] Administrative assignments: An administrative assignment
• A looming duopoly, or the exit of a global telecommunications
will include the possibility that all spectrum can be assigned at
major, are both worrying.
reasonable prices and in the process, a grand bargain can be
• Th
 ey deserve acareful and creative response.
struck with telecom operators.
• 4] Assigning 5G spectrum for private enterprise business:
Government package for telecom sector to TRAI and the Digital Communications Commission (DCC)
prevent duopoly are considering whether 5G spectrum should be assigned to
• Th
 e near-death of competition signalled by the incipient exit of companies like TCS, Amazon and Google, among others, for
Vi late last year pushed the Department of Telecommunications their private enterprise business.
(DoT) to announce steps to prevent the premature exit of a • 5G spectrum assignment for enterprises would adversely affect
sagging operator. the business model of telcos.

10 OP-ED | JUNE 2022


• B
 ut there will be enterprises that telcos could serve that are not Back2Basics: Spectrum usage charges
large enough to purchase 5G spectrum. • C ompanies had to pay3-5 per cent of their adjusted gross
 grand bargain that allows enterprises to buy 5G spectrum
• A revenue (AGR) as spectrum usage charge to the department
while assigning spectrum to the existing telcos through the of telecom.
administrative route will also serve the revenue needs of the • If they share spectrum with another operator, operators must
government. pay an additional 0.5 per cent of AGR for that band as SUC.
• 5
 ] Privatise public sector operator: This is an opportunity • However, in September 2021, the Department of
to also signal to the public sector operator that 5G business is Telecommunications (DoT) decided to remove the floor rate of
outside the range of its capability set. 3% of the adjusted gross revenue (AGR) for operators to pay
• H
 ence like Air India it needs to be privatised in the their spectrum usage charge (SUC).
fullness of time. • The removal of the clause fixing a floor rate of 3% was done to
• Th
 ese are difficult decisions and will need much more political give effect to the recently announced telecom relief package.
will than in 1994. • Though the telecom package talks of scrapping SUC only on
spectrum acquired in future auctions like that of 5G, if the
Consider the question “Why a competitive telecom
3% floor is abolished, as and when operators acquire more
market is a prerequisite for achieving India’s digital
dream and why an eminent duopoly in the sector stands spectrum in future auctions, their SUC will become zero on the
to threaten that dream? Suggest way forward.” entire holding.
• This is because of a complex weighted average formula
to calculate the SUC of operators who have a mix
Conclusion of administratively allocated spectrum and acquired
It would be tragic if India’s telecom-access market was to be through auctions.
reduced to only two competing operators, as we have a long way
to go. What we need is structural changes in the sectors as well as
the way the sector is regulated.

FOOD PROCESSING INDUSTRY: ISSUES AND DEVELOPMENTS

Rising global food prices: Causes and Solution


Economics | GS3: Agriculture and related issues,PDS, Buffer Stock & Food Security 
Note4Students | From UPSC perspective, the following things are important :
Prelims level : Consultative Group on International Agricultural Research (CGIAR)
Mains level : Paper 3- Food crisis due to price shocks

Context History of food crises after since adoption of


This increase in global food prices which manifested itself in the Green Revolution
three food price crises since the 1960s offers some pertinent • D ata from Food and Agriculture Organization of the United
lessons for global food systems and the international community. Nations, the World Bank/International Monetary Fund show
that since the onset and the adoption of Green Revolution
Managing year-to-year volatility Vs. periodic technology in the early 1960s, the world has been struck thrice
spikes in food prices by food price crises.
• Y ear-to-year volatility is easily managed by most countries • First shock-1973-76: The first shock was experienced during
through changes in their trade and domestic policies. 1973-76 when the food price index (based on prices in U.S.
• B ut steep and severe periodic price shocks can lead to some dollars) doubled in nominal terms.
sort of a crisis at the global and national levels. • Declining trend: For the next two decades, food prices in real
• I mplications: The crisis can emerge in the form of food terms followed a declining trend and were at their lowest
shortages, trade disruptions, a rise and spread in hunger and around 2002.
poverty levels, depletion of foreign exchange reserves, a strain • After this, nominal as well as the real prices of food
on a nations fiscal resources, a threat to peace, and even social began rising.
unrest in some places. • Second crisis-2008: This momentum built up to culminate
in the next food price crisis of 2008, which was further
intensified by 2011.
• While the price shock began softening after 2014, food prices
did not move back to their pre-2006 level.

www.civilsdaily.com 11
• Th
 ird crisis-2020: This time the increase in the food price index What are the implications for India?
happened very quickly and it turned out to be very big - it has • I ncreased prices in India: Export and import in the agriculture
taken the food price index to its historically highest level. sector constituted 13% of gross value added in agriculture
• C
 ause outside agriculture: All the three food price crises were during 2020-21.
triggered by factors outside agriculture. • Therefore, some transmission of an increase in global prices on
 ey were not caused by any serious shortfall in agriculture
• Th domestic prices is inevitable.
production. • Wheat export ban and implications: The recent ban on
• Th
 e interval between crises is reducing: The interval between wheat exports and restrictions on the export of other food
two consecutive price shocks has narrowed down considerably commodities by India need to be seen in the light of an
and the severity of shock is turning stronger. abnormal situation created by spikes in international prices.
• Some experts see it as a setback to India’s image as a
What are the causes responsible for the recent reliable exporter as this move is seen to disrupt (regular)
export channels.
food price crisis?
• A closer examination of data reveals that India’s action to ban
• 1
 ] Covid-19 and Ukraine crisis: It wastriggered by supply
or restrict food exports is not disrupting its normal exports.
disruptions due to COVID-19 and further aggravated by the
• India was a very small exporter of wheat, with its share in
Russia-Ukraine war.
global wheat trade ranging between 0.1% to 1% during 2015-16
• Th
 e current food price spike first began in vegetable oils and
to 2020-21.
then expanded to cereals.
• The international market is looking for around 50 million
• H
 igher the global trade higher disruption: The effect of global
tonnes of wheat to compensate for the disruption in wheat
trade disruption will be higher for commodities that are traded
exports from Russia and Ukraine.
more and vice-versa.
• If India had not imposed a ban on wheat export, it would have
• 2
 ] Diversion of food for biofuel: Another factor underlying the
resulted in a severe shortage of wheat within the country.
rising trend and spikes in food prices is the diversion of food for
biofuel needs.
 hen crude prices increase beyond a certain level it becomes
• W Global impact and suggestions
economical to use oilseeds and grains for biodiesel and ethanol, • A s the steam of Green Revolution technology slowed down with
respectively. the start of the 21st century, food prices began increasing in
• Th
 e second reason for the use of food crops for biofuel is the real terms.
mandates to increase the share of renewable energy resources. • New breakthroughs required: The world requires new
• 3
 ] Increased cost of agrochemicals and fertilisers: Food prices breakthroughs such as Green Revolution technology, for large-
are also expected to go up in the current and next harvest scale adoption in order to enable checks on food prices rising at
season because of an increase in the prices of fertilizer and a faster rate.
other agrochemicals. • Increase spending on agri-research: This in turn requires
increased spending on agriculture research and development
(especially by the public sector and multilateral development
Way forward for India
agencies).
• T
 ransmission of international prices to domestic prices can be
• Strengthen global agri-research system: There is a need to
prevented only if there is no trade.
strengthen and rejuvenate the global agri-research system
• 1
 ] Trade policy changes: This transmission of global prices to
under the Consultative Group on International Agricultural
the domestic market can be moderated through trade policy
Research (CGIAR) which is heading towards disarray.
and other instruments.
• Rethink biofuel protocols: Biofuel protocols have contributed
• W
 hen international prices go too low, India has checks on
to the global food crisis for the second time in the last 15 years.
cheap imports to protect the interests of producers; and when
• Diversion of land under food crops and food output for
international prices go too high, the country liberalises imports
biofuel should be carefully calibrated with implications for food
and imposes checks on exports to ensure adequate availability
availability.
and reasonable food prices for domestic consumers.
• 2
 ] Buffer stock: The policy of having a buffer stock of food
staples has also been very helpful in maintaining price stability, Conclusion
especially in the wake of global food crises. • Th
 e last three food price crises were primarily caused due to an
• 3
 ] Strategic liberalisation: India should continue with a policy increase in energy prices and disruptions in the movement of
of strategic liberalisation, as followed in the past, to balance the food across borders.
interests of producers and consumers. • Factors related to climate change are going to be an additional
• 4
 ] Maintain image as a reliable and credible exporter : source of supply shocks in the years ahead.
The importance of agriculture exports to mop up food and • Therefore, the global community must plan to have a global
agriculture surplus from the country is increasing. buffer stock of food in order to ensure reasonable stability in
• O
 ngoing trends in domestic demand and supply imply that food prices and supply.
India will be required to dispose of 15% of its domestic food
output in the overseas market by 2030. Back2Basics: Consultative Group on International
 is underscores the need to maintain India’s image as a
• Th
Agricultural Research (CGIAR)
reliable and credible exporter.
• C
 GIAR(formerly theConsultative Group for International
• H
 owever, it is important to differentiate between the two
Agricultural Research) is a global partnership that
situations: disturbing normal export and regulating exports
unitesinternational organizationsengaged in research about
exceeding the normal level.
food security.

12 OP-ED | JUNE 2022


• C
 GIAR research aims to reduce rural poverty, increase food
security, improve human health and nutrition, and sustainable
management of natural resources.

COAL AND MINING SECTOR

Coal Shortages in India


Economics | GS3: Infrastructure: Energy, Ports, Roads, Airports, Railways Etc. 
Note4Students | From UPSC perspective, the following things are important :
Prelims level : CERC
Mains level : Paper 3- Power crisis

Context • CIL functioning as the aggregator is a better idea and it may be


The recent power crisis due to the coal shortage in India able to import at a cheaper cost by accumulating demand as
underscores the need for measures to avoid a repeat of episodes well as standardising the coal grade to be procured.
in the future. • Moreover, it would be easier for regulators to calculate
Importance ofCoal to India: the revised energy charge since the price at which coal was
• C
 oal is the most important and abundant fossil fuel in India. imported would be well-documented.
It accounts for55% of the countrys energy needs. The countrys • Section 11 of the Electricity Act 2003 (Act) invoked : Under
industrial heritage was built upon indigenous coal. this section, the government directed imported coal-based
• C
 onsidering the limited reserve potentiality of petroleum & plants to run at full capacity with the assurance that their
natural gas, eco-conservation restriction on hydel project and enhanced cost of operation would be compensated.
geo-political perception of nuclear power, coal will continue to • Tolling : The government invoked the concept of tolling,
occupy centre-stage of India’s energy scenario. which allowed states to transfer their allotted coal to private
 ommercial primary energy consumption in India has grown
• C generators located near the mines instead of transporting it to
by about 700% in the last four decades. far away state generators.
• D
 riven by the rising population, expanding economy and a • This move would ease the burden on the availability of
quest for improved quality of life, energy usage in India is railway rakes.
expected to rise. • Seeking the consent of beneficiaries for hike: the government
issued policy directions to the Central Electricity Regulatory
Commission (CERC) overriding CERCs regulations that made it
Factors contributing to power crisis mandatory to seek the consent of beneficiaries if the tariff went
• S pike in power demand: With the sudden early onset of
up by more than 30 per cent, if some alternate fuel is used.
summer in 2022, power demand spiked, riding on the back of
• Committee to rework the energy charge: A committee of
the post-Covid economic recovery.
officials was set up to rework the energy charge for imported
• I ncrease in price due to Ukraine crisis: The matter was further
coal-based generators.
exacerbated by the Ukraine conflict, which led to a sharp
• Additional working capital: The government is cognisant
increase in the price of imported coal.
of the fact that there is a need for additional working capital
• C onsequently, power stations designed on imported coal
and has advised REC/PFC as well as commercial banks to
stopped importing because it was no longer economical
arrange for this.
for them to generate, given their contract price with the
distribution companies.
• A vailability of railway rakes : Its not that domestic coal was Issues with the measures
not available since enough stock had been built in the mines. • U se of Section 11: The government invoked Section 11 to give
• Th
 e issue was of availability of railway rakes for transportation. direction to private generators to import coal at a higher cost.
• Section 11(1) allows the government to give direction to a
generation company to operate and maintain a generating
What were the measures taken by the station in extraordinary circumstances.
government ? • Section 11(2) of the Act mentions that the adverse financial
• I mport of coal to 10 per cent: First, all generators have been impact on generating compacy due to directions referred to in
asked to import coal to the extent of 10 per cent (as against sub-section (1) would be offset by the regulator.
4 per cent earlier) and that half of this should be physically • Going by Section 11(2), the government should have left the
available by the end of June. job of working out the energy charge to the regulator instead of
• C IL as aggregator: Coal India will function as the aggregator setting up a committee of officials to do so though, of course,
on behalf of the generators. the CERC was represented in the committee.

www.civilsdaily.com 13
• 2
 ] No transparency: The committee has already worked out • Cost Effective Solar Plants: The average cost of coal-fired
the revised energy costs for six of the plants but there is no projects is Rs.4 per unit and generally sees an upward
transparency regarding the coal cost assumed, its calorific value, escalation, whereas new solar power plants are being bid out at
transportation cost, etc. less than Rs.3 per unit.
• 3
 ] Additional rakes: We have to bear in mind that the coal • New Technologies for Coal Based Units: The government has
problem arose because of the non-availability of rakes. commissioned more efficient supercritical coal based units and
• W
 ith 38 MT of coal to be imported by October this year, and old and inefficient coal based capacity is being retired. A range
half of that by end of June, the need for rakes will not only go of new technologies (like Coal gasification, Coal beneficiation,
up but would be front-loaded. etc.) can be deployed to make coal-fired power plants more
• W
 e need the requisite number of rakes otherwise, we are back environmentally compatible.
to where we began.
Conclusion
Way forward While the government is taking steps to increase coal imports
• O
 ptimal Energy Mix in Power Generation: Power is generated and addressing the other issues, it must ensure that domestic
through various sources of energy such as coal, hydro, natural production does not dip during monsoon season.
gas, and renewables (solar, wind). This gains tremendous
importance as the future generation capacity mix should be cost
effective as well as environmentally friendly.

FREEBIE MODEL OF GOVERNANCE

Freebie model of Governance


Economics | GS3: Government Budgeting,Indian Economy 
Note4Students | From UPSC perspective, the following things are important :
Prelims level : Positive externalities
Mains level : Paper 3- What commodities should be distributed for free or subsidised level

Context • The first category would include the free or subsidised provision
The newly elected Punjab governments announcement of of foodgrains and services such as health and education.
providing up to 300 units of free power to every household has • Examples of the second group include the central governments
raised questions: What constitutes freebies? recent initiative for production-linked incentives to various
sectors and tax concessions.
• In the past, incentives in the form of reduction of corporate
What is the meaning of Freebies? taxes have been offered to promote investment in general, or in
The literal meaning of freebie is something that is given free
certain regions such as backward areas.
of charge or cost. Political parties are outdoing each other in
promising free electricity and water supply, laptops, cycles,
electronic appliances, etc. These are called freebies and What are the reasons for the rise of freebie culture
characterized as fiscally imprudent. during elections?

Freebies during the Pandemic Criminalization of Politics:


Governments (both Union and states) as well as the RBI took According to the Association for Democratic Reforms (ADR), 233
several measures to mitigate pandemic effects. This included MPs in the current Lok Sabha are facing criminal charges, up
expansion of the food security scheme for two full years, cash from 187 in 2014. These candidates often resort to distribution
transfer schemes for farmers, expansion of the jobs scheme etc. of liquor, money, goods etc. to lure voters.

Two categories for providing support Myopic opinion of masses:


• I n India government provides two types of support. It is believed that Indian masses vote and react more on short
• 1 ] support to low-income households for augmenting their term freebies and less on long term policies. This encourages
consumption of selected goods and services. parties to offer more freebies.
• 2 ] Government also provides incentives to support selected
categories of investors and producers. Historical Baggage
• D ifferent objectives: The economic objectives in these two Since the independence, parties have been promising some
categories are quite different. form of freebies to attract voters. Even if a new party comes
to power, then also it cant rationalize or outrightly abolish the

14 OP-ED | JUNE 2022


freebie commitments of prior governments e.g., Several State Incentives for the rich
Governments have been forced to continue power and irrigation The well-off and businesses get freebies that are euphemistically
subsidies due to political pressure. Governments fear that called incentives. Since 2006, the Union Budget estimates these
discontinuance will antagonize their voter base. to be between Rs 4-6 lakh crore each year. If the well-off who dont
really need freebies can get so much, why cant the marginalized
Concealment of Actual performance (especially women and youth) get a fraction of it?
Freebies are often used as a means to conceal the poor
performance of incumbent Government on economic and social Social Stability:
parameters. They provide an opportunity to alter the voters Freebies enable the government to release the growing discontent
mindset from real issues to short term gains. in the marginalized section. They keep a lid on societal disruption
which would be far more expensive.
Domino Effect
The rise in coalition era politics since the 1990s has witnessed What are the arguments against Freebies?
a rise of new political parties. These small and new parties have
to offer more freebies than larger parties to lure the voters.
Undermines the spirit of Democracy:
Moreover the increase in competition among the parties to
This is the primary concern as many people tend to vote for
seek the votes, each party tries to outdo the others in terms of
parties based on the free incentives offered by them. They fail
populist promises.
to judge them on their performance and dont vote as per merit.
Even the Supreme Court has observed that freebies shake the
What are the arguments in support of Freebies? root of free and fair elections.

Welfare State Fall in Productivity


The Constitution places an obligation on the State to take Freebies create a feeling in masses that they can live with minimal
proactive measures for the welfare of poor and downtrodden. For effort. This decreases their productivity towards work e.g.,a trend
instance,Art. 39(b)calls for resource distribution for achieving has been created that whoever avail loan from banks does not
common good. repay them, expectinga waiver of loans during the election. This
gives rise to moral hazard and an incentive to default.
Glaring Inequality in the society
In India there is a wide inequality between the rich and the poor Fiscal Stress
in terms of income and wealth. The OXFAM report 2021showed Freebies generally form part of revenue expenditure. Excess
that the income of 84% of households in the country declined allocation towards them leaves little to spend on capital
in 2021, but at the same time the number of Indian billionaires expenditure that is a sine qua non for achieving long-term
grew from 102 to 142. growth. A case in point isTamil Nadu which has been rolling
out freebies in keeping with poll promisesand ended up with
Sacrifices by the marginalized section: unsustainable fiscal conditions.
They gave up land for cities, roads, factories and dams. However,
they largely became landless workers and slum dwellers.Their Discourages the honest taxpayer
kinship, culture and lives got disrupted. Several economists It creates a sense of discontentment in the mind of an honest
argue that the gains of development have hardly trickled down taxpayer whose money is used to fund the freebie expenditure.
commensurately, especially after 1991. The cost of freebies This feeling is more dominant especially when the State is unable
offered is a fraction of what the poor lose. The World Bank to improve the public services due to freebie commitments.
recognised in the 1980s that the prevalent policies marginalize
the poor and a safety net (freebies) is needed.
Sectoral Collapse
The populist measures of loan waiver have put significant
Cushion during Emergencies pressure on the banking sector. Similarly rising power subsidies
COVID-19 has been one of the biggest health emergencies in have enhanced pressures on discoms who are failing to sustain
the world in over a century. Such extreme events warrant state themselves.
support to prevent chaos and disruption in society e.g., the free
COVID-19 vaccination for every individual in India led to a more
Wastage of Resources
prudent management of the pandemic.
Promises of free water and electricity creates a severe stress
on the water table and leads to over exploitation as seen in
Economic Push states of Punjab and Haryana. NITI Aayog has cautioned that
They help increase the demand that prevents the rate of growth 21 major cities of India are on the verge of running out of
from declining further. Free education and health are anyway groundwaterin a few years.
justified because they are cases of merit wants and increase
productivity of labor.
What commodities should be distributed free?
• Th
 e key question is to decide what commodities should be
distributed free or at a subsidised level and what the level of
subsidy should be.

www.civilsdaily.com 15
• E ssential goods : The provision of foodgrains at a heavily • 2] Production-related incentives: In the case of production-
subsidised price to target groups has found general acceptance, related incentives, alternative methods include direct budgetary
particularly among political parties, even though there are support and indirect support through tax concessions.
some critics of the measure. • Both have a differential impact.
• Th
 e distribution of commodities which are considered essential, • These schemes also require to be carefully designed to avoid
primarily foodgrains, faces no criticism. their misuse and minimise their costs. The provision of free
• M erit goods: There is also a category of goods which are called power to farmers was often misused.
merit goods where significant positive externalities are • In the case of tax concessions, there have not been any
associated with their consumption for instance, health and convincing studies as to whether the stated initial objectives
education-related provisions, including mid-day meals and were achieved in line with the large budgetary costs.
breakfast. • The magnitudes involved amounted to 1.9 per cent and 2.5 per
• I n such cases, subsidisation is justified: If only market prices cent of the GDP in 2018-19 and 2019-20 respectively.
prevail, the community will consume less than what is socially
desirable. Suggestions
• I t is advisable to limit the distribution of commodities
What should be the suitable mode of and services at highly subsidised levels to essential and
providing support? merit goods.
• Th
 e question of a suitable model for providing budgetary • Infrastructure expansion: Production may be incentivised
support arises in the context of both consumption and more effectively by other methods such as infrastructure
production-supporting initiatives. expansion.
• 1
 ] In the first case, budgetary support to a targeted segment of • Determining the total quantum of support: In respect of
the population for augmenting their consumption of essential production-related incentives also, greater care is required
items may be provided either through direct income support for determining the total quantum of support as well as the
or by a free or highly subsidised provision. specific forms of such support.
• P
 rocurement set up and distribution system: When the • Limit of 10 %: It would be prudent to limit overall fiscal
provision of subsidised goods is involved, there may, in general, support for the distribution of commodities to less than 10 per
be a requirement of a procurement set-up and a public cent of the total expenditure of the central government and
distribution system. state governments until their revenue GDP or GSDP ratios are
• M
 anaging procurement and distribution by government successfully increased in a sustained way.
agencies involves additional costs which tend to be higher
than the corresponding supply through the market because of Conclusion
leakages and avoidable administrative costs. Governments that do not pay adequate attention to the strength
of their fisc eventually become exposed to the cost of the choices
that they make.

AGRICULTURAL SECTOR AND MARKETING REFORMS - ENAM, MODEL APMC ACT, ECO SURVEY RECO, ETC.

Oil palm
Economics | GS3: Agriculture and related issues 
Note4Students | From UPSC perspective, the following things are important :
Prelims level : Not much
Mains level : Paper 3- Self reliance in edible oil through oil palm

Context • The Ministerial Conference is the top decision-making body


Supply disruptions during the pandemic and the Russia-Ukraine of the agency whose basic goal is to ensure that trade flows as
war have led many nations to think about self-sufficiency in smoothly, predictably and freely.
critical food items or at least reduce their excessive dependence • Trading rules for dire situations: As far as agriculture, trade
on imports of essential food products. and food security are concerned, the challenge is to figure
out the most appropriate trading rules in dire situations
like pandemics, wars, social/political disruptions or natural
Challenges facing global trade disasters.
• Th
 e World Trade Organisations (WTO) recently concluded12th
Ministerial Conference in Geneva, struggled to find answers to
some of the complex questions pertaining to global trade.

16 OP-ED | JUNE 2022


• E xport bans: Recent examples include Russias export ban • The largest importer of palm oil is India (19 per cent),
on wheat and sunflower oil, Ukraines ban on exports of food followed by the European Union (15 per cent, 7.3 million
staples, Indonesias ban on palm oil exports, Argentinas ban tonnes) and China (14 per cent) (Index Muni, 2020).
on beef exports, Turkey, Kyrgyzstan and Kazakhstans ban on a
variety of grain products, and India’s wheat export ban. India specific
• S udden actions such as these exacerbate the pressure on global • I n India, oil palm is being cultivated in 13 states. Potential
trade leading to a spike in the prices. states are Andhra Pradesh, Gujarat, Karnataka, Tamil Nadu
and Bihar.
India’s import dependence for edible oil • Andhra Pradesh (83.5 percent) along with Telangana
• I ndia imports 55 to 60 per cent of its edible oil requirements. accounts for about 97 percent of India’s 278,000 tonnes of
• I ndia’s edible oil import bill in 2021-22 (FY22) crossed $19 crude palm oil production.
billion (for more than 14 MMT of imports) (see figure).
• P alm oil comprises more than 50 per cent of India’s edible oil Self-reliance Vs Self-sufficiency
imports, followed by soybean and sunflower. • S elf-sufficiency and self-reliance are two different concepts with
• A tmanirbharta in edible oil: The excessive dependence on very different policy implications.
imports has raised the pitch for atmanirbharta in edible oil. • What is self-sufficiency? Self-sufficiency would imply
 e Prime Minister launched the National Edible Oil Mission-
• Th replacing all imports of a commodity (say edible oils in India’s
Oil Palm (NEOM-OP) in 2021. case) at any cost (thus raising import duties exorbitantly).
• What is self-reliance? Self-reliance would continue to embed
the principle of comparative advantage in the endeavour to
reduce dependence on imports.
• Case of India’s agriculture: The countrys agri-exports in FY22
touched $ 50.3 billion against its agri-imports of $ 32.4 billion.
• This means that Indian agriculture is largely globally
competitive.
• But its biggest agri-import item, edible oil, accounts for 59 per
cent of India’s agri-import basket.

Way forward
• 1 ] Develop oil palm: Given the way international prices of
edible oils have surged in the last year or so (by more than 70
per cent), it may be time for India to ramp up its efforts in
developing oil palm.
• Why oil palm? The Prime Minister launched the National
Edible Oil Mission-Oil Palm (NEOM-OP) in 2021.
• Challenges in traditional oilseed : Achieving atmanirbharta
in edible oils through traditional oilseeds such as mustard,
groundnuts and soya would require an additional area of about
What is oil palm?
39 million hectares under oilseeds.
• P alm oil is an edible vegetable oil derived from the mesocarp
• Danger to food security: Such a large tract of land will not
(reddish pulp) of the fruit of the oil palms.
be available without cutting down the area under key staples
• A long with coconut oil, palm oil is one of the few highly
(cereals) this could endanger the countrys food security
saturated vegetable fats and is semi-solid at room
even more.
temperature.
• So, a rational policy option to reduce import dependence in
• I t is resistant to oxidation and so can give products a longer
edible oils is to develop oil palm at home and ensure that it
shelf-life; its stable at high temperatures
gives productivity comparable to that in Indonesia and Malaysia
• H ence, the oil is used in food manufacturing, in beauty
about four tonnes of oil per hectare, which is more than 10
products, and as biofuel.
times mustard can give at existing yields.
• I ts use in the commercial food industry in other parts of the
• India has identified 2.8 million hectares of area where oil palm
world is widespread because of its lower cost.
can be grown suitably.
• So far the objective of NEOM-OP is to bring in at least 1
Production million hectare under oil palm by 2025-26.
• I ndonesia is the largest producer of palm oil, followed by • 2] Declare oil palm as a plantation crop: The other option is
Malaysia - both countries account for 84% of the worlds palm to declare oil palm as a plantation crop and allow the corporate
production. The largest producers of palm oil are Thailand, players to own/lease land on a long-term basis to develop their
Colombia and Nigeria. own plantations and processing units.
• G lobally, palm oil supplies 35% of the worlds vegetable oil • This does not seem plausible in the current socio-
demand on just 10% of the land. political context.

Consumption Challenges
 e largest consumer of palm oil are India (9.4 million
• Th • L
 ong gestation period: It takes four to six years to come to
tonnes) and Indonesia (6 million tonnes) countries in which maturity; during this period, smallholders need to be fully
palm oil is traditionally used for cooking. supported.

www.civilsdaily.com 17
• Th
 e support (subsidy) could be the opportunity cost of their • Oil recovery: Besides this, the processing industry needs to
lands, say profits from paddy cultivation, which is largely the ensure an oil recovery of at least 18 to 20 per cent that must be
crop oil palm will replace in coastal and upland areas of Andhra, built into the pricing formula.
Telangana and Northeast India.
• P
 ricing formula: Further, the pricing formula of fresh fruit Conclusion
bunches (FFB) for farmers has to be dovetailed with a likely Overall, unless India thinks holistically and adopts a long-term
long-run average landed price of crude palm oil with due vision, the chances of reducing India’s imports of edible oils from
flexibility in the import duty structure. 14MMT in FY22 to 7MMT by FY27 look bleak.
• A
 ppropriate import duty: One needs to identify trigger
points when import duties need to be raised as global prices
come down, and when to reduce these duties in case of rising
global prices.

LABOUR, JOBS AND EMPLOYMENT - HARMONIZATION OF LABOUR LAWS, GENDER GAP, UNEMPLOYMENT, ETC.

Recruitment of 10 lakh people in “mission mode


Economics | GS3: Effects Of Liberalization On The Economy, Changes In Industrial Policy and their effects on Industrial Growth 
Note4Students | From UPSC perspective, the following things are important :
Prelims level : Not much
Mains level : Paper 2- Job creation by the government

Context What are the employment trends in India?


The government recently announced that 10 lakh government • F irst, the present government is relying on the Employees
jobs will be provided over the next 18 months on a mission mode. Provident Fund Organization/National Pension System/
Employees State Insurance Scheme registrations and exits as
Background indicators of the formal labor market.
• Th
 e government recently announced it would recruit 10 lakh • This could be misleading, as companies may be increasing
people in mission mode over the next one-and-a-half years. registrations to cross the threshold to become eligible to
• Th
 e announcement came at a time when the unemployment fall under any of these. Hence, this might be more a case of
rate for youth (aged 15-29 years) in urban areas has been formalization rather than employment generation.
hovering at over 20 per cent for the last several quarters. • Second, media reports show that more than 85% of those
• A
 ccording to the Quarterly Bulletin of Periodic Labour Force aspiring for those 10 lakh jobs could be consumed by existing
Survey (PLFS), the youth unemployment rate, according to vacancies in Central government departments (8,72,243). In
current weekly status, stood at 20.8 per cent in urban areas that sense, the pronouncement possibly does not indicate 10
during October-December 2021. lakh new jobs.
• Th
 e annual PLFS report too shows that the overall youth • Third, 241 central public sector enterprises (CPSEs) have been
unemployment rate, according to usual status (ps+ss), was at shedding jobs in recent years jobs declined from 10.84 lakh in
12.9 per cent 18.5 per cent in urban areas and 10.7 per cent in 2017-18 to 10.71 lakh in 2018-19 and to 9.22 lakh in 2019-20.
rural areas during July-June 2020-21. This downward trend is a cause for concern.
• Fourth, The 10 lakh jobs creation also needs to be seen in the
context of the labour market. Even though the labour force and
Three takeaways from the announcement workforce participation rates have increased marginally, there is
 ne, the creation of employment is indeed a problem and can
• O a decline in the quality of jobs. This means that there is a rise
no longer be hidden from the public discourse. in the unpaid segment of the self-employed and a rise in the
• T
 wo, the private sector, especially modern sectors such as the share of the agricultural sector in total employment over the
service and manufacturing sectors, which are dominated by last three Periodic Labour Force Surveys (43% to 47%). This is a
multinational companies, have not created many jobs. historical retrogression.
• E
 ven if the Information Technology sector or the modern gig • On the other hand, the manufacturing sectors share in
economy have created jobs, these are either very high-skilled national income has declined in 2020-21 (10.9%) compared to
jobs or low-skilled ones. that in 2018-19 (12.1%).
• Th
 ree, the government in the Nehruvian scheme of • Employment shares in the informal enterprises have
development occupied an important place in the increased for men (71% to 75%), women (55% to 57%) and all
labour market. persons (68% to 71%) from 2017-18 to 2020-21.
• Th
 e government is now forced to step in as persistently rising
inflation, unemployment and underemployment threaten to
politically affect it.

18 OP-ED | JUNE 2022


Data Analysis • National Career Service
 ccording to the report of the 7th Pay Commission, the total
• A • This is a site ICT based portal under the Ministry of Labour
sanctioned strength of the central government fell from 41.76 and Employment that provides a platform to people for
lakh in 1994 to 38.9 lakh in 2014. career opportunities as well as opportunities to hire people to
• B
 etween 2017-18 and 2021-22, the staff selection commission companies and other institutions
and the union public service commission recruited only 1.74 • Aajeevika National Rural Livelihoods Programme
lakh and 24,836 candidates. • Launched by the Ministry of rural development in 2011, this
• O
 n February 3, 2022, Minister of State in the DoPT told Rajya scheme targets rural poor households through self managed
Sabha that as on March 1, 2020, as many as 8,72,243 positions Self Help Groups (SHGs) and other institutions to create a
were vacant in the central government. livelihood
• E-shram
• It is a portal instituted by the Ministry of Labour to create a
Governments Efforts
National Database of Unorganised Workers (NDUW).
• M ahatma Gandhi National Rural Employment Guarantee Act
• It facilitates the registration of employees aged between 16-59
(MGNREGA)
years in the unorganised sector like street vendors, workers
• I t aims at enhancing the employment aspect of households
in construction, freelancers, domestic, migrant, agricultural
in rural areas and provides 100 days of guaranteed wage
workers and so on.
employment in a financial year to an adult member of the
• Pradhan Mantri Mudra Yojana (PMMY)
household who volunteers for the unskilled manual labour.
• MUDRA stands for Micro Units Development & Refinance
• S ampoorna Rojgar Yojana
Agency Ltd.
• I t has the primary objective of providing skilled employment to
• It is a financial institution set up by the Government.
improve the skill level in the rural and urban areas.
• Under the Pradhan Mantri Mudra Yojana (PMMY), banks
• Th
 e main focus is on providing employment to the unemployed
provide collateral-free loans up to Rs 10 lakh.
youth looking for jobs and those that have a desire to do
• These loans are given to non-farm small/micro enterprises for
manual and skilled labour in and around their village or locality.
income generating activities.
• Th
 e person gets fixed payment and incentives based on their
• Launched in 2015
performance
• Start-Up India Programme: A flagship initiative, intended to
• P rime Ministers Employment Generation
build a strong eco-system for nurturing innovation and start-
Programme (PMEGP)
ups in the country to drive sustainable economic growth and
• Th
 e scheme was announced in 2008.
generate large scale employment opportunities.
• Th
 e primary objective of the scheme is to generate continuous
and sustainable employment opportunities in Rural and Urban
areas of the country Challenge in recruiting 10 lakh people
• G arib Kalyan Rojgar Abhiyan • I t will be a really big task given that presently the central
• I t was announced in 2020 with a mission of 125 days covering government offices house around 3.45 million personnel as
116 districts of six states namely; Bihar, Madhya Pradesh, per the budget for 2022-23.
Rajasthan, Uttar Pradesh, Odisha and Jharkhand. • Short time frame: The first challenge is in recruiting such a
• Th
 ese states received back the maximum number of large number in this short period of time considering that
migrant workers. there are fairly lengthy processes involved in hiring people to
• I t ensures that each migrant worker gets the opportunity government departments.
to work under the program and will also help them for • Finding meaningful role: Hiring such a number is good for
the development and expansion of their livelihoods for the country, but finding meaningful roles for them in various
the long-run. departments needs to be seriously examined.
• P radhan Mantri Rojgar Protsahan Yojana (PMRPY) • Quite clearly, plans need to be in place to provide work to this
• Th
 is is a scheme where the government provides an incentive set of new employees.
to the employers in the form of EPS Employee Pension • Increase in cost for the government: The third issue that
Scheme and EPF Employee Provident Fund for generating new would have to be kept in mind is the increase in cost for the
employment. government.
• B y doing so, there are more employment opportunities and the • As per the budget for 2022-23, the average outgo per employee
incentive will motivate the employers to provide the same was around Rs 12.20 lakh.
• A tal Beema Vyakti Kalyan Yojana • Assuming the new set earns half of the existing average, the
• Th
 is scheme was introduced in 2018 for a period of 2 years but additional cost would be at least Rs 60,000 crore.
was extended considering the pandemic. • The salary outlay for the year was Rs 4.22 lakh crore.
• I t provides relief to insured persons at the instance of their • These provisions would have to be made in subsequent budgets.
unemployment
• R ajiv Gandhi Shramik Kalyan Yojna (RGSKY) What more needs to be done ?
• U nder this scheme, persons who are insured for a period of 3 or • U nemployment and inflation are the two biggest economic
more years are eligible to gain relief when they are unemployed, issues today, the government appears to be now moving to
medical care from ESI hospitals for self as well as family and can tackle them with some urgency.
also engage in training programmes to upgrade skills • There is a lack of proper education, training, and skill
• A am Admi Bima Yojana development in the country.
• Th
 e name of this scheme translates to Common Mans • The programs must be aimed at providing higher-paying jobs
Insurance Scheme. and to perpetually attract the young demographic of the
• Th
 e scheme provides monetary aid for death or disability. population towards attractive jobs.
• Th
 e people who are eligible for this scheme are the ones who are
not on payroll like fishermen, auto drivers, etc.

www.civilsdaily.com 19
• W
 ith roughly 12 million individuals entering the working age • It is necessary to organise the Rural works Programme.
population each year, around 6 million jobs need to be created • Failure of implementation of the Rural Works Programme
each year, assuming a labour force participation rate of 0.5. underlines the relatively low importance given to the rural
• Th
 is requires creating jobs at a scale which only the private sector to provide additional employment to millions of landless
sector can do efficiently. labourers and small and marginal farmers.
• Th
 e employment objective and the output objective can be
achieved, if greater investment is directed to small enterprises
rather than to large enterprises.

MONETARY POLICY COMMITTEE NOTIFICATIONS

Communication gap between the MPC and RBI


Economics | GS3: Indian Economy 
Note4Students | From UPSC perspective, the following things are important :
Prelims level : GSAP
Mains level : Paper 3- Communication gap between MPC and RBI

Context Following are the ways which indicate the communication gap
Communication is a critical element of monetary policy. Yet between the RBI and the MPC, with several implications for the
there seems to be a gap between what the MPC says and what credibility of the MPC.
the RBI does.
1] Separate statements
About MPC • D uring the first few years of the inflation-targeting regime from
• Th
 e Reserve Bank of India Act, 1934 (RBI Act) has been 2016 to 2018, the process of communication worked quite well.
amended by the Finance Act, 2016, to provide for a statutory • On the days of policy announcements, the governor and his
and institutionalised framework for a Monetary Policy deputies would participate in a press conference.
Committee, for maintaining price stability, while keeping in • From 2019 onwards, however, things began to change.
mind the objective of growth. • Governor’s separate statement: The RBI began to release a
• H
 ighest monetary policy-making body: By law, the Monetary separate governors statement on the day of the monetary
Policy Committee is the highest monetary policy-making body policy meeting, presenting an inflation outlook and even
in the land, tasked with deciding monetary policy changes at explaining the decision taken by the MPC.
regular intervals. • MPC statement: It has overlapped with the MPC statement; at
• C
 omposition: The MPC will have six members the RBI times, it has seemed somewhat different.
Governor (Chairperson), the RBI Deputy Governor in charge • For example, following the June 8 Monetary Policy Review the
of monetary policy, one official nominated by the RBI Board MPC highlighted inflation concerns, and voted in favour of
and the remaining three members would represent the raising the policy repo rate.
Government of India. • On the same day, a governors statement mentioned that
• Th
 e MPC will be chaired by the Governor. the central bank will also remain focussed on the orderly
 nder the inflation targeting regime, the most important role
• U completion of the governments borrowing programme.
in communication belongs to the MPC. • Confusion: The issuance of two such different statements can
lead to confusion, especially as lowering inflation and lowering
government bond yields are contradictory policy objectives.
Communication with public
• M onetary policy changes are communicated through formal
statements, with the discussions underlying these decisions Why is communication so crucial? To influence
also being published, so that the public can understand why the inflation expectations!
MPC decided the way that they did. • I f the public believes the central bank is committed to keeping
• C ommunication gap: Over the past few years, a inflation under control, then it will act accordingly.
communication gap seems to have opened up between what the • Firms will moderate their price increases, fearing that large
MPC has been saying and what the RBI has been doing, thereby price rises will make them uncompetitive.
potentially eroding the credibility of the IT framework. • Meanwhile, workers will accept moderate wage increases,
• I nfluencing inflation expectations: Communication is an while investors will accept low interest rates on their bond
important part of the ability of the central bank to influence purchases.
inflation expectations. • With everyone acting in this way, it will be easier for the central
bank to ensure that inflation indeed remains low.

20 OP-ED | JUNE 2022


• A
 nchored inflation expectations: If inflation expectations Way forward
are well anchored, then it becomes relatively easy for the • I n its latest two statements, the MPC indicated that policy
central bank to ensure that inflation returns to the target level would now be focusing on bringing India’s inflation rate
before too long. under control.
• Clear policy framework: If the RBI is going to be successful
2] Change in the Monetary Policy Corridor width in this endeavour, the first step must be to close the
communication gap, by reintroducing a simple and clear policy
during pandemic
framework and restoring the central role of the MPC.
• D eciding the repo rate: The most important task of the MPC,
enshrined in the RBI Act (Amended), 2016 that introduced IT,
is to decide the repo rate, since this has long been the lynchpin Conclusion
of India’s monetary policy framework. The net result of all these actions is a potential loss of both clarity
• E ver since the early 2000s, policy had aimed to keep overnight and credibility. The communication gapwill need to be closedin
money market rates in a corridor, with the lower bound order for the RBI to become successful in bringing inflation back
established by thereverse repo rateand the upper bound by the to its 4 per cent target level.
repo rate.
• S ince the width of this corridor was fixed, once the repo Back2Basics: Monetary Policy Corridor
rate was decided, the reverse repo rate was automatically • Th
 e Corridor in the monetary policy of the RBI refers to the
determined, and market overnight rates adjusted accordingly. area between the reverse repo rate and the MSF rate.
• D uring the Covid-19 pandemic, the RBI constantly adjusted • Reverse repo rate will be the lowest of the policy rates whereas
the reverse repo rate even as the MPC kept the repo rate Marginal Standing Facility is something like an upper ceiling
unchanged. with a higher rate than the repo rate.
• A s a result, the fixed width of the corridor was lost, and the • The MSF rate and reverse repo rate determine the corridor for
MPC lost any role in determining interest rates. the daily movement in the weighted average call money rate.
• As per the monetary policy of the RBI, ideally, the call rate
3] Introduction of policy instruments outside the should travel within the corridor showing a comfortable
liquidity situation in the financial system and economy.
remit of MPC
 uring pandemic, the RBI introduced a number of new policy
• D
instruments, again outside the remit of the MPC.
• G
 SAP: It brought in the GSAP programme through which it
pre-commited to buying a certain amount of dated government
bonds in order to control their yields.
• V
 ariable reverse repo auctions: It then introduced variable
reverse repo auctions, and more recently, replaced the reverse
repo rate with the long-dormant standing deposit facility rate.
• Th
 e rationale for this was not explained in the MPC statement.
• A
 ll unconventional monetary policy announcements were kept
outside the MPC statement.
• Th
 is raised the questions about the role of the committee
in deciding monetary policy actions at a crucial time like
the pandemic.

4] Intervention in the foreign exchange market


• Th
 e RBI has been intervening in the foreign exchange market to
manage the rupee.
• F orex interventions by definition influence the domestic
monetary base and inflation. What is GSAP?
• Y et the MPC in its monetary policy statements does not discuss  e G-Sec Acquisition Programme (G-SAP) is basically an
• Th
either the exchange rate dynamics or the forex interventions. unconditional and a structured Open Market Operation
• J ust as it does not discuss the RBIs interventions in the bond (OMO), of a much larger scale and size.
market to lower the yields. • G-SAP is an OMO with a distinct character.
• The word unconditional here connotes that RBI has committed
upfront that it will buy G-Secs irrespective of the market
sentiment.

www.civilsdaily.com 21
WTO AND INDIA

Agreement on Fisheries Subsidies (AFS)


Economics | GS3: Issues Related To Farm Subsidies & Msp 
Note4Students | From UPSC perspective, the following things are important :
Prelims level : AFS
Mains level : Paper 3- Agreement on Fisheries Subsidies (AFS)

Context • Economic growth through ocean resources: Given its


The recently concluded twelfth ministerial conference of the long coastline of nearly 7,500 kilometres, the blue economy
World Trade Organisation (WTO) adopted the trade agreement sustainable use of ocean resources for economic growth
called the occupies a cardinal place in India’s development trajectory.
Agreement on Fisheries Subsidies (AFS). • India has set a target of exporting marine products worth $14
billion by 2025.
• Policy space for marine infrastructure : India needs the policy
About the AFS space to invest in developing the marine infrastructure to
 TO negotiations on fisheries subsidies were launched in
• W
harness the full potential of the blue economy.
2001 at the Doha Ministerial Conference, with a mandate
• Livelihood concerns: Moreover, India needs to protect the
to clarify and improve existing WTO disciplines on fisheries
livelihood concerns of close to four million marine farmers, the
subsidies.
majority of whom are engaged in small-scale, artisanal fishing,
• A
 t the 2017 Buenos Aires Ministerial Conference (MC11),
which does not pose a great threat to sustainability.
ministers decided on a work programme to conclude the
• However, India’s demand for a longer transition period was not
negotiations by aiming to adopt, at the next Ministerial
acceptable to many countries who insisted on this period being
Conference, an agreement on fisheries subsidies which delivers
seven years
on Sustainable Development Goal 14.6.
• Th
 e recently concluded twelfth ministerial conference of the
World Trade Organisation (WTO) adopted a sustainability- The disparity between Developed countries and
driven trade agreement called the Agreement on Fisheries Developing countries
Subsidies (AFS). • I ndia rightly contends that WTO disciplines should not be
developed in a manner that throttles its emerging sector while
Provisions adopted in the AFS richer nations continue to negotiate exemptions for indefinite
• P rohibits three subsidies: Fundamentally, AFS prohibits three subsidisation and exclusion of horizontal, non-specific fuel
kinds of subsidies: subsidies in the text.
• F irst, illegal, unreported, or unregulated (IUU) fishing. • Rich countries have historically provided massive subsidies
• S econd, fishing of already over-exploited stocks. to build capacity for large-scale fishing and fishing in distant
 ird, fishing on unregulated high seas.
• Th waters, thereby contributing the most to depletion.
• T wo-year transition period for developing countries: As part • India provided subsidies worth a mere $277 million in 2018,
of special and differential treatment (S&DT), developing in sharp contrast to the top five subsidisers: China, EU, US,
countries like India have been given a two-year transition South Korea, and Japan, whose subsidies range from $7,261-
period for phasing out the first two kinds of subsidies within $2,860 million respectively.
their Exclusive Economic Zone (EEZ).
• H owever, the final negotiated outcome, most crucially, lacks Way forward
the much-needed discipline on subsidies for fishing in other • C omprehensive agreement: For the sake of sustainability,
members waters and those that contribute to overcapacity countries need to overcome their differences soon and forge a
and over-fishing (OCOF). comprehensive agreement with the inclusion of meaningful
• L imited AFS: WTO member countries agreed to a limited AFS S&DT, else they risk the indefinite continuation of harmful
sans regulations disciplining OCOF subsidies, which have been subsidies by all players.
pushed to the future and are expected to be completed within • One balancing act could be to consider different ways to
four years. effectuate such flexibilities while accommodating the demands
• I f negotiations fail, the AFS will stand terminated, as provided in a more targeted manner.
in Article 12. • Strengthening infrastructure: India could strengthen
• M eanwhile, all countries can continue providing most OCOF infrastructure and mechanisms to be able to utilise any future
subsidies, that is, except for fishing on unregulated high seas. exemptions.

What are the implications for India? Conclusion


• L
 onger transition period required: India has been demanding For India, the AFS is less-than-perfect, with a potential of no
that developing countries be given a longer transition period of real outcome at the end of four years if the negotiations fail. But
25 years to put an end to OCOF subsidies within their EEZ. negotiations over the global commons are not easy.

22 OP-ED | JUNE 2022


RBI NOTIFICATIONS

Need for transparency in RBI’s policy making


Economics | GS3: Indian Economy 
Note4Students | From UPSC perspective, the following things are important :
Mains level : Paper 3- Transparency in RBI’s policy making

Context • Regulatory governance issues: Separately, critics have


Modern inflation targeting central banks are often bound by also highlighted broader regulatory governance challenges
explicit statutory mandates.Critics have argued that the RBI at the RBI.
ignored its statutory inflation targeting duty. • For instance, its alleged use of informal nudges to restrict a
foreign players access to the Indian payment ecosystem goes
against an adverse Supreme Court ruling.
Why transparency and predictability of the central • Such criticisms underline an urgent need to improve the
bank is important? credibility of the central banks rule of law quotient.
• P rior to the 1990s, central banks preferred secrecy. • Least responsive in legislative function: A 2019 research
• S urprising market: The common wisdom was that the efficacy paper found the central banks legislative functions to be the
of monetary policy depended on taking markets by surprise. least responsive in comparison to three other regulators SEBI,
 is belief started changing gradually with the adoption of
• Th TRAI and AERA.
inflation targeting. • RBI’ss consultation papers usually presented only one solution
• I nfluencing the inflation expectations: Targeting inflation and did not offer merits and demerits of multiple possible
required central banks to influence households and firms solutions.
decisions.
• Th
 us emerged the need for central banks to be transparent and
Implications of weak regulatory governance:
predictable.
Judicial scrutiny
• W eak regulatory governance resulted in weak regulations,
Independence with accountability of the inviting judicial scrutiny.
Central bank • Changes in master circular: In 2019, the Supreme Court
• Th
 ere was growing international recognition that central banks effectively rewrote RBIs master circular on wilful defaulters to
as monetary authorities should enjoy a relatively higher degree provide additional procedural safeguards to borrowers.
of independence from governments. • Striking down of crypto ban: In 2020, the court struck down
• I n a democratic polity, this could only be expected in exchange an RBI circular that sought to ban its regulated entities from
for increased accountability. dealing or settling in virtual currencies.
• A s a result, regulatory governance gradually emerged as a • The court found that the RBI had neither adduced any cogent
relevant consideration for independent central banks over the evidence of the likely harm, nor had it considered any less
last three decades. intrusive alternative before issuing the circular.

Regulatory governance at the RBI RRA 2.0 suggestions for the RBI
• Th
 e regulatory governance discourse in India came into the  e recent report of the Regulations Review Authority 2.0
• Th
focus with the report of the Financial Sector Legislative (RRA) offers useful suggestions to improve the central banks
Reforms Commission in 2013. regulation-making process.
 ike a state, regulators usually enjoy significant legislative,
• L • The RBI had set up the Review Authority 2.0 (RRA) in April
executive and judicial powers and should be subject to 2021 to streamline its regulations.
appropriate accountability mechanisms. • Skill improvement in regulatory drafting: RRA has advocated
 ese should include internal separation of powers ; a well-
• Th for skill development in regulatory drafting inside the RBI.
structured regulation making process overseen by the board, • Public consultation: To improve regulatory governance at the
through public consultation and cost-benefit analysis; duty to RBI, RRA suggested that its regulatory instructions should be
explain its actions to regulated entities and public at large; issued only after public consultation, except if they are urgent
regular reporting requirements ; and judicial review. or time sensitive.
• B
 ased on these recommendations, the Ministry of Finance • They must contain a brief statement of objects and reasons
released a handbook in 2013 for voluntary adoption of these clearly explaining the rationale behind their issuance.
enhanced governance standards by all financial sector • Although much softer than the FSRLC standards, RRA
regulators. nevertheless signal a progressive step forward.
• Th
 ese developments turned the spotlight on the RBIs
regulatory governance.
Conclusion
The RBI should heed these recommendations. It should ideally
Reasons for the criticism of the RBI hardcode the suggested principles into a secondary legislation
• T
 argeting exchange rate: The central bank appears to have that is binding on itself. That would be the best way to signal
ventured into uncharted legal territory by possibly targeting that the central bank takes regulatory governance and rule of law
the exchange rate instead of inflation. seriously.

www.civilsdaily.com 23
FERTILIZER SECTOR REFORMS - NBS, BIO-FERTILIZERS, NEEM COATING, ETC.

Fertlizer subsidy issue


Economics | GS3: Agriculture and related issues 
Note4Students | From UPSC perspective, the following things are important :
Prelims level : Di-ammonium fertilisers
Mains level : Paper 3- Reducing the cost of fertiliser imports

Context • More recently, Fertilizer subsidy has doubled in a short


The global prices of urea, DAP, MOP, phosphoric acid, ammonia period of three years. For 2021-22, the Union Budget has
and LNG have soared by two to two-and-a-half times in estimated fertilizer subsidy at 79,530 crore (from 66,468 crore
the last year in 2017-18)

Fertiliser Subsidy: Disproportionate use of Urea


 armers buy fertilisers at Maximum Retail Prices (MRP)
• F • D ue to opposition to increase fertilizer prices, the increase in
below their normal supply-and-demand-based market rates the price of urea was rolled back to 17% in 1992 over the pre-
or what it costs to produce/import them. reform price.
• F
 or example, the MRP of neem-coated urea is fixed by the • This change disturbed the relative prices of various fertilizers
government at Rs. 5,922.22 per tonne, whereas its average cost- and resulted in a big shift in the composition of fertilizers used
plus price payable to domestic manufacturers and importers in the country in favour of urea and thus N.
comes to around Rs. 17,000 and Rs. 23,000 per tonne, • The ratio of use of N:P:K increased from 5.9:2.4:1 in 1991-92 to
respectively. 9.7:2.9:1 in 1993-94
 e difference, which varies according to plant-wise production
• Th • R ather, there has been an uncontrolled increase in subsidies on
cost and import price, is footed by the Centre as subsidy, urea, due to almost freezing the MRP of urea in different time
which goes to the companies. periods and its rising sale due to low cost.
 e MRPs of non-urea fertilisers are decontrolled or fixed
• Th
by the companies. However, the Centre pays a flat per-tonne Inter-State disparities in fertilizer subsidy
subsidy on these nutrients to ensure reasonable prices. • I n 2019-20, fertilizer use per hectare of cultivated area varied
• Th
 e per-tonne subsidy ranges from Rs. 10,231 to Rs. 24,000 for from 70 kg of NPK in Rajasthan to 250 kg in Telangana.
different types of fertilisers. • N,P,K ratio was 33.7:8.0:1 in Punjab and 1.3:0.7:1 in Kerala.
• All these have implications for inter-State disparities in
Subsidy Mechanism: fertilizer subsidy due to high variations in subsidy content,
 rom March 2018, a new direct benefit transfer (DBT)
• F which is highly biased towards urea and thus nitrogen.
system was introduced, wherein subsidy payment to the
companies would happen only after actual sales to farmers by Import Dependence
retailers. • Th
 e total demand for urea in the country is about 34-35
 ach retailer has a point-of-sale (PoS) machine linked to the
• E million tonnes (mln t) whereas the domestic production is
Department of Fertilisers e-Urvarak DBT portal. Anybody about 25 mln t.
buying subsidised fertilisers is required to furnish their • The requirement of Diammonium Phosphate (DAP) is about 12
Aadhaar or Kisan Credit Card (KCC) number. mln t and domestic production is just 5 mln t.
• O
 nly upon the sale getting registered on the e-Urvarak • This leaves the gap of nearly 9-10 mln t for urea and 7 mln t for
platform can a company claim subsidy, with these being DAP, which is met through imports.
processed on a weekly basis and payments remitted • In addition, consumption of complex fertilizers (NPK) is about
electronically to its bank account. 12-13 mln t, which is largely produced within the country and
so the import requirement is only 1 mln t.
What are the issues with Fertiliser
Subsidies in India? Volatile International Prices creating fiscal
challenges
Failed attempt to increase Price of Fertilizer • O f late, there has been a surge in international prices with
• Th
 e Economic Survey of 1991-92 noted that fertilizer prices urea prices rising to a record level of over $900 per metric
remained almost unchanged from July 1981 to July 1991. tonne (mt) in November 2021 from nearly $270 per mt in
• Th
 e Union Budget of July 1991 raised the issue prices of September 2020.
fertilizers by 40% on average. But from August that year, this • Likewise, the international prices of DAP have risen from
was reduced to 30%, and small and marginal farmers were about $360 per mt in September 2020 to about $825 per mt in
exempted from the price increase. November 2021.
• Th
 e Economic Survey further noted that even with this 30% • In order to minimise the impact of rise in prices on farmers, the
increase, fertilizer subsidy remained substantial and needed to bulk of the price rise is absorbed by the government through
be reduced further. enhanced fertilizer subsidy. This is likely to create serious fiscal
challenges.

24 OP-ED | JUNE 2022


Subsidy burden borne by Tax payers • Restrict DAP use: DAP use should be restricted mainly to
• A
 t current prices, farmers pay about 268 per bag of urea and paddy and wheat; other crops dont require fertilisers with 46
the Government of India pays an average subsidy of about per cent P content.
930 per bag. • India can also import more rock phosphate to make SSP directly
• Th
 us, taxpayers bear 78% of the cost of urea and farmers pay or it can be converted into weak phosphoric acid
only 22%. This is expected to increase and is not sustainable. • The latter, having only about 29 per cent P (compared to 52-54
per cent in normal strong merchant-grade phosphoric acid),
is good enough for manufacturing 20:20:0:13, 10:26:26 and
Demand of subsidy for organic fertilizer
other low-analysis complex fertilisers.
• C
 oncerned with the adverse environmental impact of certain
chemical fertilizers, some sections of society suggest the use of
organic fertilizers and biofertilizers instead. 3] Incorporate MOP into complexes
• Th
 ere is a growing demand to provide subsidies and other • A s regards MOP, roughly three-fourths of the imported
incentives for organic fertilizers and biofertilizers to match material is now applied directly and only the balance is sold
those provided for chemical fertilizers. after incorporating into complexes.
• It should be the other way around.
• India, to re-emphasise, needs to wean its farmers away from
Suggestions
all high-analysis fertilisers.

1] Reduce consumption of high-analysis fertilisers


• Th
 ere is a need to cap or even reduce consumption of high-
4] Use of NPKS complexes and indigenous sources
• Th
 e moment to use more NPKS complexes and SSP, is already
analysis fertilisers particularly urea (46 per cent N content),
happening.
DAP (18 per cent N and 46 per cent P) and MOP (60 per cent).
• It requires a concerted push, alongside popularising high
• I ncorporate urease and inhibition compounds in urea :
nutrient use-efficient water-soluble fertilisers (potassium
This can be done by i ncorporating urease and nitrification
nitrate, potassium sulphate, calcium nitrate, etc).
inhibition compounds in urea.
• Exploiting alternative indigenous sources needs to be
 ese are basically chemicals that slow down the rate at which
• Th
considered(for example, potash derived from molasses-based
urea is hydrolysed and nitrified (which increases leaching).
distillery spent-wash and from seaweed extract).
• B y reducing ammonia volatilisation and nitrate leaching,
more nitrogen is made available to the crop, enabling farmers to
harvest the same yields with a lesser number of urea bags. 5] Revise nutrient application recommendations
• L iquid nano-urea: Together with products such as liquid nano • F armers need to know what is a suitable substitute for DAP and
urea it is possible to achieve a 20 per cent or more drop in urea which NPK complex or organic manure can bring down their
consumption from the present 34-35 mt levels. urea application from 2.5 to 1.5 bags per acre.
• L iquid nano-urea with their ultra-small particle size is • It calls for agriculture departments and universities not
conducive to easier absorption by the plants than with bulk just to revisit their existing crop-wise nutrient application
fertilisers, translating into higher nitrogen use efficiency. recommendations, but disseminating this information to
farmers on a campaign mode.
2] Promote the sale of SSP and complex fertilisers
• A
 second route is by promoting sales of SSP (containing 16 Conclusion
per cent P and 11 per cent S) and complex fertilisers such as The costs associated with the use of fertilisers are unsustainably
20:20:0:13 and 10:26:26. high to bear for a mineral resource-poor country such as
India. We need to act on the measures to reduce our import
dependence.

E-COMMERCE: THE NEW BOOM

online marketplace
Economics | GS3: Indian Economy 
Note4Students | From UPSC perspective, the following things are important :
Prelims level : Not much
Mains level : Paper 3- E-commerce regulation issue

Context What is e-commerce ?


The proliferation of a wide range of e-commerce platforms has • E
 lectronic commerce or e-commerce is a business model that
created convenience and increased consumer choice. However, lets firms and individuals buy and sell things over the Internet.
these platforms also have given rise to several concerns as well.

www.civilsdaily.com 25
• P ropelled by rising smartphone penetration, the launch of Issues created by the e-commerce sites
4G networks and increasing consumer wealth, the Indian • P redatory pricing: These companies resort to predatory
e-commerce market is expected to grow to US$ 200 billion by pricing to acquire customers even as they suffer persistent
2026 from US$ 38.5 billion in 2017. financial losses.
• I ndia’s e-commerce revenue is expected to jump from US$ 39 • SEBI is rightly revisiting the valuation norms of such
billion in 2017 to US$ 120 billion in 2020, growing at an annual companies looking to list on the stock exchange.
rate of 51%, the highest in the world. • Exclusionary practice: They take away choice from suppliers
• Th
 e Indian e-commerce industry has been on an upward growth and consumers.
trajectory and is expected to surpass the US to become the • This, in the long run, can be viewed as an exclusionary practice
second-largest e-commerce market in the world by 2034. that eliminates other players from the market.
• Lack of level playing field: While neutrality is the fundamental
basis of a marketplace and a level playing field is in the fitness
of things, claims of outfits such as Flipkart or Amazon to be a
marketplace for a wide variety of sellers can be questioned.
• A few select sellers, who are generally affiliated with the
platform, reap the benefits of greater visibility and better
terms of trade reduced commissions and platform-funded
discounts.
• Undue advantage to associated companies: The associate
companies are prominent sellers on their platform.
• It is alleged that undue advantage is given while recommending
or listing theseproducts.
• Cartelisation: Online travel aggregators are often accused of
cartelisation.
• Information asymmetry: The aggregators gather shopping
habits, consumer preferences, and other personal data.
• The platforms are accused of using this data to create and
improve their own products and services, taking away
business from other sellers on their platform.
• They capitalise on this data and information about other brands
to launch competing products on their marketplace.
Advantages of e-Commerce
• This information asymmetry is exploited by the aggregators to
• Th
 e process of e-commerce enables sellers to come closer to
devour organisations they promise to support.
customers that lead to increased productivity and perfect
• Problems in dispute resolution mechanism: Another issue
competition. The customer can also choose between different
often noticed is the lack of a fair and transparent dispute
sellers and buy the most relevant products as per requirements,
resolution mechanism for sellers on these platforms.
preferences, and budget. Moreover, customers now have access
• Delayed payments, unreasonable charges, and hidden fees are
to virtual stores 24/7.
common occurrences.
• e -Commerce also leads to significant transaction cost
• Unreasonable and one-sided contracts allow travel aggregators
reduction for consumers.
to have a disparity clause (in the rates) which allows them
• e -commerce has emerged as one of the fast-growing trade
to offer rooms at a much cheaper rate but bars the hotels
channels available for the cross-border trade of goods and
from doing so.
services.
• I t provides a wider reach and reception across the global
market, with minimum investments. It enables sellers to Impact of the e-commerce
sell to a global audience and also customers to make a global  e online aggregator platforms have also damaged large
• Th
choice. Geographical boundaries and challenges are eradicated/ segments of small and medium businesses through their
drastically reduced. dominant position and the malpractices this position allows
• Th
 rough direct interaction with final customers, this them to indulge in.
e-commerce process cuts the product distribution chain to a • The ultimate loss bearer is the consume r who will have a
significant extent. A direct and transparent channel between reduced bargaining position.
the producer or service provider and the final customer is made.
This way products and services that are created to cater to the Way forward
individual preferences of the target audience. • C omprehensive rules : It is time that a set of comprehensive
• C ustomers can easily locate products since e-commerce can be rules and regulations is put together.
one store set up for all the customers business needs • These regulations need to be inclusive, should eliminate the
• E ase of doing business: It makes starting, managing business conflicts of interest inherent in current market practices, and
easy and simple. prevent any anti-competitive practices.
• Th
 e growth in the e-commerce sector can boost employment, • Model agreement: A model agreement that is fair and allows a
increase revenues from export, increase tax collection by level playing field between the aggregators and their business
ex-chequers, and provide better products and services to partners should be implemented.
customers in the long-term. • Learning from EU act: There is a lot to learn from the Digital
Markets Act of the EU that seeks to address unfair practices by
these gatekeepers.

26 OP-ED | JUNE 2022


• N
 eed for dispute resolution mechanism: Strong and quick • Fair competition rules: Market dominance and subsequent
grievance redressal and dispute resolution mechanisms should invoking of fair competition rules should be triggered at the
be established. level of micro-markets and for product segments.
• P
 unitive penalties: The rules should allow for punitive
penalties for unfair practices. Conclusion
The nature of our success in dealing with this change will lie in
the ways in which we deal with the concerns of all players.

START-UP ECOSYSTEM IN INDIA

Downturn in tech startup ecosystem


Economics | GS3: Indian Economy 
Note4Students | From UPSC perspective, the following things are important :
Prelims level : Not much
Mains level : Paper 3- Challenges ahead for tech startups

Context • Affordability : Keeping things affordable is another key


The startup ecosystem which has been in overdrive for the past highlight of these startups.
few years propelled by a combination of factors, but largely, by • Privately owned: Most of the unicorns are privately owned
the era of cheap money is now showing signs of weakness. which gets their valuation bigger when an established company
invests in it.
• Software-based: A recent report suggests that 87% of the
Definition of Startup (only for the purpose of unicorns products are software, 7% are hardware and the rest
Government schemes) 6% are other products & services.
An entity shall be considered as a Startup:
• U
 pto a period of ten years from the date of incorporation/
What is the State of Startups and
registration, if it is incorporated as a private limited company
(as defined in the Companies Act, 2013) or registered as Unicorns in India?
a partnership firm (registered under section 59 of the • S tatus :
Partnership Act, 1932) or a limited liability partnership (under • India has become the 3rd largest start-up ecosystem in the
the Limited Liability Partnership Act, 2008) in India. world after the US and China.
• T
 urnover of the entity for any of the financial years since • 44 Indian start-ups have achieved unicorn status in 2021
incorporation/ registration has not exceeded one hundred taking the overall tally of unicorns to 83, most of which are in
crore rupees. the services sector.
• E
 ntity is working towards innovation, development or • India has seen such rapid growth in unicorns due to several
improvement of products or processes or services, or if it is a strategic as well as conditional reasons.
scalable business model with a high potential of employment
generation or wealth creation. Provided that an entity formed Factors that helped fuel the tech startups
by splitting up or reconstruction of an existing business shall • W ith the combination of accelerated financial inclusion (bank
not be considered a Startup. accounts), ease of identification (Aadhaar) and connectivity
Provided that such entity is not formed by splitting up, or (mobile phones) it was said that it is ultimately a bet on the
reconstruction, of a business already in existence. An entity shall Indian consumer, and the economy, not on government
cease to be a Startup on completion of ten years from the date of regulations/policies.
its incorporation/ registration or if its turnover for any previous • Low-interest rates: In the era of cheap money and negative real
year exceeds one hundred crore rupees interest rates, uncomfortable questions over the true market
size and profitability were swept under the rug.
Features: • Growth fuelled by cash burn: High cash burn rates were
• D
 isruptive innovation: Mostly, all the unicorns have brought the norm as both startups and investors sought growth by
a disruption in the field they belong to, for example, Uber subsidising the customer.
transformed commuting. • Government Support:
• T
 echnology-driven: The business model is driven by the latest • Government of India is understanding the value of working
technological innovations and trends. with disruptive innovators across the value chain and using
• C
 onsumer-focused: Their goal is to simplify things for their innovations to improve public service delivery.
consumers and be a part of their day-to-day life.

www.civilsdaily.com 27
• D
 epartment of Animal Husbandary and Dairying has conducted • Smartphone users: One such number thrown around is the
a grand challenge in association with Startup India to award top smartphone users in the country some have pegged this at
startups in 5 categories 10 lakhs INR. 500 million.
• A
 doption of Digital Services: • UPI transactions: The transactions routed through the UPI
• Th
 e pandemic accelerated the adoption of digital services by platform in May there were almost six billion transactions
consumers helping start-ups and new-age ventures build tech- worth Rs 10 trillion.
focused businesses for customers. • Bank account holders : We have the near universality of
• O
 nline Services and Work from Home Culture: bank accounts.
• M
 any Indians moved to online services exploring a host of • But in reality, for most of these startups, the market or even
services ranging from food delivery and Edu-tech to e-grocery. the potential market is just a fraction of this.
• Th
 e Work-from-home culture helped increase the number of • There arent that many consumers with significant
start-ups user base and expedited their business expansion discretionary spending capacity, and those with the capacity
plans and attracting investors. arent increasing their spending as these companies would hope.
• D
 igital Payments: • No increase in spending: What is equally worrying is the
 e growth of Digital Payments is another aspect that aided
• Th complete absence of any increase in spending by even these
the unicorn the most. consumers who would have the capacity to spend more.
• While more consumers are on-board digital payment platforms
What is going wrong? Paytm has about 70 million monthly transacting users these
• L ack of profitability: Among the startups that have gone public numbers suggest that when it comes to consumers with
in recent times, Paytms losses stood at Rs 2,396 crore in 2021- considerable discretionary spending, the size of the market
22, while for Zomato and PB Fintech (PolicyBazaar) losses were shrivels considerably.
Rs 1,222 crore and Rs 832 crore respectively.
• D rying-up of investment: Sure, investors will continue to Way Forward
pour money. • Th
 e accelerated development of the start-up ecosystem needs
• S ome early age start-ups will continue to be funded, as will significant funding and therefore the role of venture capital and
some of the more mature ones. Angel Investors are critical.
• But investors are likely to be more circumspect in their dealings. • Apart from policy-level decisions that promote
• I mpact on valuation: There are also reports of startups in entrepreneurship, the onus is also on India’s corporate sector
diverse markets, ranging from Ola to OYO, planning to raise to foster entrepreneurialism, and create synergies to build
funds at lower valuations. impactful technology solutions, and sustainable and resource-
• A mong those who have gone public in recent times, most are efficient growth.
trading much below their listing price.
• T ighter financial conditions, a re-rating of the market, will Conclusion
impact both fundraising efforts and valuations. Tech startups are about to witness a tough time ahead. Some
startups will survive this period. Many may not. And changes
Lack of discretionary spending capacity in the dynamics of private markets will also have a bearing on
• M
 any numbers were given as indicators of the size of the public markets.
market or TAM (the total addressable market).

28 OP-ED | JUNE 2022


GOVERNANCE

www.civilsdaily.com 29
HEALTH SECTOR - UHC, NATIONAL HEALTH POLICY, FAMILY PLANNING, HEALTH INSURANCE, ETC.

Malnutrition in India is a worry in a modern scenario


Governance | GS2: Governance, Transparency & Accountability, Citizens Charters,Health & Education 
Note4Students | From UPSC perspective, the following things are important :
Prelims level : Not much
Mains level : Paper 2- Malnutrition challenge

Context • The market has stacks of expensive fortified energy food and
The countrys response to its burden of malnutrition and growing beverages for higher income groups, but nothing affordable
anaemia has to be practical and innovative. for low-income groups.

What is malnutrition? The vicious cycle of malnutrition


 alnutrition refers to deficiencies, excesses or imbalances in a
• M • L ink with mother: A childs nutritional status is directly linked
persons intake of energy and/or nutrients. to their mother.
 e term malnutrition covers 2 broad groups of conditions.
• Th • Poor nutrition among pregnant women affects the nutritional
 ne is undernutrition which includes stunting (low height for
• O status of the child and has a greater chance to affect future
age), wasting (low weight for height), underweight (low weight generations.
for age) and micronutrient deficiencies or insufficiencies (a • Impact on studies: Undernourished children are at risk of
lack of important vitamins and minerals). under-performing in studies and have limited job prospects.
• Th
 e other is overweight, obesity and diet-related non- • Impact on development of the country: This vicious cycle
communicable diseases (such as heart disease, stroke, diabetes, restrains the development of the country, whose workforce,
and cancer). affected mentally and physically, has reduced work capacity.

What are the root causes of malnutrition in India? Marginal improvement on Stunting and Wasting
The following three deficits are the root cause of  e National Family Health Survey (NFHS-5) has shown
• Th
malnutrition in India. marginal improvement in different nutrition indicators,
indicating that the pace of progress is slow.
• This is despite declining rates of poverty, increased self-
1) Dietary deficit sufficiency in food production, and the implementation of a
• Th
 ere is a large dietary deficit among at least 40 per cent of our
range of government programmes.
population of all age groups, shown in the National Nutrition
• Children in several States are more undernourished now than
Monitoring Bureaus Third Repeat Survey (2012), NFHS 4,
they were five years ago.
2015-16, the NNMB Technical Report Number 27, 2017.
• Increased stunting in some states: Stunting is defined as low
• O
 ur current interventions are not being able to bridge this
height-for-age.
protein-calorie-micronutrient deficit.
• While there was some reduction in stunting rates (35.5% from
• Th
 e NHHS-4 and NFHS-5 surveys reveal an acute dietary deficit
38.4% in NFHS-4) 13 States or Union Territories have seen an
among infants below two years, and considerable stunting and
increase in stunted children since NFHS-4.
wasting of infants below six months.
• This includes Gujarat, Maharashtra, West Bengal and Kerala.
• U
 nless this maternal/infant dietary deficit is addressed, we will
• Wasting remains stagnant: Wasting is defined as low weight-
not see rapid improvement in our nutritional indicators.
for-height.
• Malnutrition trends across NFHS surveys show that wasting,
2) Information deficit at household level the most visible and life-threatening form of malnutrition, has
• W
 e do not have a national IEC (information, education and either risen or has remained stagnant over the years.
communication) programme that reaches targeted households
to bring about the required behavioural change regarding some
Prevalence of anaemia in India
basic but critical facts.
• W hat is it? Anaemia is defined as the condition in which the
• F
 or example, IEC tells about the importance of balanced diets
number of red blood cells or the haemoglobin concentration
in low-income household budgets, proper maternal, child and
within them is lower than normal.
adolescent nutrition and healthcare.
• Consequences: Anaemia has major consequences in terms of
human health and development.
3) Inequitable market conditions • It reduces the work capacity of individuals, in turn impacting
• Th
 e largest deficit, which is a major cause of dietary deficiency the economy and overall national growth.
and India’s chronic malnutrition, pertains to inequitable • Developing countries lose up to 4.05% in GDP per annum
market conditions. due to iron deficiency anaemia; India loses up to 1.18% of
• S uch market conditions deny affordable and energy- GDP annually.
fortified food to children, adolescents and adults in lower- • The NFHS-5 survey indicates that more than 57% of women
income families. (15-49 years) and over 67% children (six-59 months) suffer
from anaemia.

30 OP-ED | JUNE 2022


Way forward • This will ensure greater awareness and proper planning and
implementation of programmes.
• This can then be replicated at the district and national levels.
1] Increase investment:
• Th
 ere is a greater need now to increase investment in women
and childrens health and nutrition to ensure their sustainable 3] Increase awareness and mother’s education
development and improved quality of life. • W ith basic education and general awareness, every individual is
• S
 aksham Anganwadi and the Prime Ministers Overarching informed, takes initiatives at the personal level and can become
Scheme for Holistic Nourishment (POSHAN) 2.0 programme an agent of change.
have seen only a marginal increase in budgetary allocation • Various studies highlight a strong link between mothers
this year (20,263 crore from 20,105 crore in 2021-22). education and improved access and compliance with nutrition
• A
 dditionally, 32% of funds released under POSHAN Abhiyaan interventions among children.
to States and Union Territories have not been utilised.
4] Monitoring
2] Adopt outcome oriented approach on the • Th
 ere should be a process to monitor and evaluate programmes
nutrition programme and address systemic and on the ground challenges.
• I ndia must adopt an outcome-oriented approach on nutrition • A new or existing committee or the relevant standing
programmes. committees meet and deliberate over effective policy decisions,
• I t is crucial that parliamentarians begin monitoring needs and monitor the implementation of schemes, and review nutritional
interventions in their constituencies and raise awareness on status across States.
the issues, impact, and solutions to address the challenges at
the local level. Conclusion
• D irect engagement: There has to be direct engagement with We must ensure our young population has a competitive
nutritionally vulnerable groups and ensuring last-mile delivery advantage; nutrition and health are foundational to
of key nutrition services and interventions. that outcome.

HEALTH SECTOR - UHC, NATIONAL HEALTH POLICY, FAMILY PLANNING, HEALTH INSURANCE, ETC.

ASHA Program
Governance | GS2: Health & Education 
Note4Students | From UPSC perspective, the following things are important :
Prelims level : ASHA program
Mains level : Paper 2- Strengthening ASHA

Context • The core of the ASHA programme has been an intention to


India’s one million Accredited Social Health Activists (ASHA) build the capacity of community members in taking care of
volunteers have received World Health Organizations Global their own health and being partners in health services.
Health Leaders Awards 2022. • Each of these women-only volunteers work with a population of
nearly 1,000 people in rural and 2,000 people in urban areas,
with flexibility for local adjustments.
Background of the ASHA program
• I n 1975, a WHO monograph titled Health by the people and
then in 1978, an international conference on primary health Qualifications for ASHA Workers
care in Alma Ata (in the then USSR and now in Kazakhstan), • A SHAs are primarily married, widowed, or divorced women
gave emphasis for countries recruiting community health between the ages of 25 and 45 years from within the
workers to strengthen primary health-care services that were community.
participatory and people centric. • They must have good communication and leadership skills;
• S oon after, many countries launched community health worker should be literate with formal education up to Class 8, as per
programmes under different names. the programme guidelines.
• I ndia launched the ASHA programme in 2005-06 as part of the
National Rural Health Mission. A well thought through and deliberated program
• Th
 e biggest inspiration for designing the ASHA programme • Th
 e ASHA programme was well thought through and
came from the Mitanin (meaning a female friend in deliberated with public health specialists and community-based
Chhattisgarhi) initiative of Chhattisgarh, which had started organisations from the beginning.
in May 2002.

www.civilsdaily.com 31
• 1
 ] Key village stakeholders selected : The ASHA selection and treatment for hypertension, diabetes and tuberculosis,
involved key village stakeholders to ensure community etc., for both rural and urban populations, with special focus on
ownership for the initiatives and forge a partnership. difficult-to-reach habitations.
• 2
 ] Ensure familiarity: ASHAs coming from the same village • Over the years, ASHAs have played an outstanding role in
where they worked had an aim to ensure familiarity, better making India polio free, increasing routine immunisation
community connect and acceptance. coverage; reducing maternal mortality; improving new-born
• 3
 ] Community’s representative: The idea of having activists survival and in greater access to treatment for common
in their name was to reflect that they were/are the communitys illnesses.
representative in the health system, and not the lowest-rung
government functionary in the community. Challenges
• 4
 ] Avoiding the slow process of government recruitment: • N o fixed salary to ASHAs: Among the A-A-A, ASHAs are the
Calling them volunteers was partly to avoid a painfully only ones who do not have a fixed salary; they do not have
slow process for government recruitment and to allow an opportunity for career progression.
opportunity to implement performance-based incentives in the • These issues have resulted in dissatisfaction, regular agitations
hope that this approach would bring about some accountability. and protests by ASHAs in many States of India.
• The ASHAs faced a range of challenges: Where to stay in a
What do ASHA workers do? hospital? How to manage mobility? How to tackle safety issues?
 ey go door-to-door in their designated areas creating
• Th • There have been challenges with regard to the performance-
awareness about basic nutrition, hygiene practices, and the based compensation. In many states, the payout is low, and
health services available. often delayed.
 ey focus primarily on ensuring that pregnant women
• Th • It has a problem of responsibility and accountability without
undergo ante-natal check-up, maintain nutrition during fair compensation.
pregnancy, deliver at a healthcare facility, and provide post- • There is a strong argument to grant permanence to some of
birth training on breast-feeding and complementary nutrition these positions with a reasonable compensation as sustaining
of children. motivation.
 ey also counsel women about contraceptives and sexually
• Th • Ideally, an ASHA should be able to make more than the salary
transmitted infections. of a government employee, with opportunities for moving up
 SHA workers are also tasked with ensuring and motivating
• A the skill ladder in the formal primary health care system as an
children to get immunised. ANM/ GNM or a Public Health Nurse.
• O
 ther than mother and child care, ASHA workers also provide
medicines daily to TB patients under directly observed Way forward
treatment of the national programme. • Th
 e global recognition for ASHAs should be used as an
 ey are also tasked with screening for infections like malaria
• Th opportunity to review the programme afresh, from a solution
during the season. perspective.
 ey also provide basic medicines and therapies to people
• Th • Higher remuneration: Indian States need to develop
under their jurisdiction such as oral rehydration solution, mechanisms for higher remuneration for ASHAs.
chloroquine for malaria, iron folic acid tablets to prevent • Avenues for career progression: It is time that in-built
anaemia etc. institutional mechanisms are created for capacity-building and
 ow, they also get people tested and get their reports for non-
• N avenues for career progression for ASHAs to move to other
communicable diseases. cadres such as ANM, public health nurse and community health
 e health volunteers are also tasked with informing their
• Th officers are opened.
respective primary health centre about any births or deaths • Extend the benefits of social sector services: Extending the
in their designated areas. benefits of social sector services including health insurance (for
ASHAs and their families) should be considered.
How much are ASHA workers paid? • Independent and external review: While the ASHA
• S ince they are considered volunteers/activists, governments programme has benefitted from many internal and regular
are not obligated to pay them a salary. And, most states dont. reviews by the Government, an independent and external
• Th
 eir income depends on incentives under various schemes that review of the programme needs to be given urgent and priority
are provided when they, for example, ensure an institutional consideration.
delivery or when they get a child immunised. • Regularisation of temporary posts: There are arguments for
• A ll this adds up to only between Rs 6,000 to Rs 8,000 a month. the regularisation of many temporary posts in the National
• H er work is so tailored that it does not interfere with her Health Mission and making ASHAs permanent government
normal livelihood. employees.

Contribution of ASHA Conclusion


• I t is important to note that even before the COVID-19 The WHO award for ASHA volunteers is a proud moment and also
pandemic, ASHAs have made extraordinary contributions a recognition of every health functionary working for the poor
towards enabling increased access to primary health-care and the underserved in India. It is a reminder and an opportunity
services ; i.e. maternal and child health including immunisation to further strengthen the ASHA programme for a stronger and
community-oriented primary health-care system.

32 OP-ED | JUNE 2022


CIVIL SERVICES REFORMS

The problem with putting the civil services on a pedestal


Governance | GS2: Civil Service 
Note4Students | From UPSC perspective, the following things are important :
Prelims level : Creation of All India Services
Mains level : Paper 2- Civil Service reforms

Context Issues with public perception


Recently, two IAS officers were the subject of widespread public • H owever, in the perceived strengths of the civil services lie its
derision for misuse of power. A week later, the media and the weaknesses.
public feted those who had successfully cracked the UPSC • Single exam: The single UPSC examination is treated
examination in order to become bureaucrats of the future. as gospel.
• But merit and competence cannot be judged by a single exam.
About Indian Administrative Service • Permanence is a problem: The permanence of the job is a
• C ivil Services refer to the career civil servants who are the problem too.
permanent executive branch of the Republic of India. • Punishment for over-reach or misuse of power is a transfer,
 e modern Indian Administrative Service was created under
• Th either from a weightier ministry to a lighter one or from high-
Article 312(2) in part XIV of the Constitution of India, and the profile capitals to geographically remote ones.
All-India Services Act, 1951. • A system of limited accountability: The result is that all civil
• I t is the backbone of the administrative machinery of servants, never mind their ability or competence, operate
the country. in a system of limited accountability with few incentives
• A s India is a parliamentary democracy, the ultimate to perform and plenty of opportunities to use and abuse
responsibility for running the administration rests with the their powers.
peoples elected representatives.
• Th
 e elected executive decides the policy and it is civil servants, Way forward
who serve at the pleasure of the President of India, • P lacing civil servant at par with other professions: The civil
implement it. services system needs to be brought down from its pedestal
• A rticle 311 of the Constitution protects Civil Servants from and placed at par with every other profession like elsewhere in
politically motivated vindictive action. the world.
• This will not happen via political diktat. It requires the weight
What makes civil services favourable in India of public opinion.
• M
 ost countries in the world have a cadre of professional • Broaden the selection criteria: The system must be manned by
civil servants but nowhere are new entrants to the system of capable, competent individuals. This cannot be decided on the
government celebrated like in India. basis of one exam.
• C
 olonial legacy: The fact is that, 75 years after independence • Remove the job permanency: The underperforming officers
and 30 years after liberalisation, there is still an overhang of the need to be separated which cannot happen when the job
all-powerful, all-pervasive state. is for life.
• Th
 ere are good reasons for a favourable view of the • It may sound radical for India’s civil services but that is the way
civil services. the rest of India and the world function, including the UK from
• M
 erit based selection: For one, candidates are selected on where we inherited the structure.
merit based on an open examination and interview.
• J
 ob security: Then there is the job security that comes with Conclusion
gaining entry. If we can make these changes in the civil services, India will get
• U
 nless a civil servant does an extraordinary wrong, she has a the government it needs for the 21st century.
job for life, and steady, time-bound promotions which ensure
that everyone retires at the top irrespective of performance.

www.civilsdaily.com 33
HEALTH SECTOR - UHC, NATIONAL HEALTH POLICY, FAMILY PLANNING, HEALTH INSURANCE, ETC.

Healthcare in India is ailing. Here is how to fix it


Governance | GS2: Health & Education 
Note4Students | From UPSC perspective, the following things are important :
Prelims level : National Health Mission
Mains level : Paper 2- Reforms in healthcare

Context Learning from the failure of National Health


The lesson emerging from the pandemic experience is that if Mission (NHM)
India does not want a repeat of the immeasurable suffering and • Th
 e National Health Mission (NHM) has been in existence for
the social and economic loss, we need to make public health a about 15 years now and the health budget has trebled though
central focus. not as a proportion of the GDP.
• Despite this less than 10 per cent of the health facilities below
Need for institutional reforms in the health sector the district level can attain the grossly minimal Indian public
• Th
 e importance of public health has been known for decades health standards.
with every expert committee underscoring it. • Clearly, the three-tier model of subcentres with paramedics,
• I deas ranged from instituting a central public health primary health centres with MBBS doctors and community
management cadre like the IAS to adopting an institutionalised health centres (CHC) with four to six specialists has failed.
approach to diverse public health concerns from healthy • Lack of accountability framework: The models weakness is the
cities, enforcing road safety to immunising newborns, treating absence of an accountability framework.
infectious diseases and promoting wellness. • The facilities are designed to be passive treating those
• C ovid has shifted the policy dialogue from health budgets and seeking care.
medical colleges towards much-needed institutional reform.
Suggestions
Issues With Current Healthcare System • 1 ] FHT: Instead of passive design of NHM, we need Family
• L ack of Primary Healthcare Services: The existing public Health Teams (FHT) like in Brazil, accountable for the health
primary health care model in the country is limited in scope. and wellbeing of a dedicated population, say 2,000 families.
• E ven where there is a well-functioning public primary health • The FHTs must consist of a doctor with a diploma in family
centre, only services related to pregnancy care, limited childcare medicine and a dozen trained personnel to reflect the skill base
and certain services related to national health programmes required for the 12 guaranteed services under the Ayushman
are provided. Bharat scheme.
• S upply-Side Deficiencies: Poor health management skills • A baseline survey of these families will provide information
and lack of appropriate training and supportive supervision about those needing attention.
for health workers prevent delivery of the desired quality of • Family as a unit: The team ensures a continuum of care
health services. by taking the family as a unit and ensuring its well-being
• I nadequate Funding: Expenditure on public health funding has over a period.
been consistently low in India (approximately 1.3% of GDP). • Nudging these families to adopt lifestyle changes, following up
As per OECD, India’s total out-of-pocket expenditure is around on referrals for medical interventions and post-operative care
2.3 % of GDP. through home visits for nursing and physiotherapy services
• S ub-optimal Public Health System: Due to this, it is would be their mandate.
challenging to tackle Non-communicable Diseases, which is all • 2] Health cadre: The implication of and central to the success
about prevention and early detection. of such a reset lies in creating appropriate cadres.
• I t diminishes preparedness and effective management for new • 3] Clarity to nomenclatures: There is also a need to declutter
and emerging threats such as pandemic like Covid-19 policy dialogue and provide clarity to the nomenclatures.
• Currently, public health, family medicine and public health
About National Health Mission (NHM) management are used interchangeably.
 e National Health Mission (NHM) seeks to provide universal
• Th • While the family doctor cures one who is sick, the public health
access to equitable, affordable and quality health care which expert prevents one from falling sick.
is accountable, at the same time responsive, to the needs of • The public health management specialist holds specialisation
the people, reduction of child and maternal deaths as well as in health economics, procurement systems, inventory control,
population stabilization, gender and demographic balance. electronic data analysis and monitoring, motivational skills
• Th
 e Framework for Implementation of NUHM has been and team-building capabilities, public communication and
approved by the Cabinet on May 1, 2013. time management, besides, coordinating with the various
 HM encompasses two Sub-Missions, National Rural
• N stakeholders in the field.
Health Mission (NRHM) and National Urban Health • 4] Move beyond doctor-led systems: India needs to move
Mission (NUHM). beyond the doctor-led system and paramedicalise several
• Th
 eNational Rural Health Mission (NRHM)was launched in functions.
2005 with a view to bringing about dramatic improvement in • Instead of wasting gynaecologists in CHCs midwives (nurses
the health system and the health status of the people, especially with a BSc degree and two years of training in midwifery)
those who live in the rural areas of the country. can provide equally good services except surgical, and can be
positioned in all CHCs and PHCs.

34 OP-ED | JUNE 2022


• Th
 is will help reduce C Sections, maternal and infant mortality • Increase spending on training: Spending on pre-service and
and out of pocket expenses. in-service training needs to increase from the current level of
• 5
 ] Counsellors and physiotherapists at PHC: Lay counsellors about 1 per cent.
for mental health, physiotherapists and public health nurses • 7] Redefining of functions: A comprehensive redefinition of
are critically required for addressing the multiple needs of functions of all personnel is required to weed out redundancies
primary health care at the family and community levels. and redeploy the rewired ones.
• 6
 ] Review of existing system: Bringing such a transformative
health system will require a comprehensive review of the Conclusion
existing training institutions, standardising curricula and the Resetting the system to current day realities requires strong
qualifying criteria. political leadership to go beyond the inertia of the techno-
administrative status quoist structures. We can.

SWACHH BHARAT MISSION

The Jal Jeevan and Swachh Bharat Missions


are improving people’s well-being
Governance | GS2: Governance, Transparency & Accountability, Citizens Charters 
Note4Students | From UPSC perspective, the following things are important :
Prelims level : Jal Jeevan Mission
Mains level : Paper 2- Achievements of JJM and SBM

Context Implementation:
The performance of the Jal Jeevan and Swachh Bharat Missions • P aani Samitis plan, implement, manage, operate and maintain
highlights the importance of convergence as an operating village water supply systems.
principle of the government. • These consist of 10-15 members, with at least 50% women
• J JM aims to ensure assured tap water supply or Har Ghar Jal members and other members from Self-Help Groups,
to all rural households by 2024. Accredited Social and Health Workers, Anganwadi
• A bout: teachers, etc.
• L aunched in 2019, it envisages supply of 55 litres of water • The committees prepare a one-time village action plan, merging
per person per day to every rural household through all available village resources. The plan is approved in a Gram
Functional Household Tap Connections (FHTC) by 2024. Sabha before implementation.
• J JM looks to create a jan andolan for water, thereby making it
everyones priority. Funding Pattern:
• I t comes under Jal Shakti Ministry. • Th
 e fund sharing pattern between the Centre and states is
• A ims: 90:10 for Himalayan and North-Eastern States, 50:50 for other
 e mission ensures functionality of existing water supply
• Th states, and 100% for Union Territories.
systems and water connections, water quality monitoring and
testing as well as sustainable agriculture.
• I t also ensures conjunctive use of conserved water; drinking Jal Jeevan Mission: Progress made so far
water source augmentation, drinking water supply system, • J al Jeevan Mission (JJM) is a flagship programme of the
grey water treatment and its reuse. Government of India, launched by Hon’ble Prime Minister on
15thAugust 2019.
• Jal Jeevan Mission, is envisioned to provide safe and adequate
Features: drinking water through individual household tap connections
• J JM focuses on integrated demand and supply-side by 2024 to all households in rural India.
management of water at the local level. • Community approach: The Jal Jeevan Mission is based on
• C reation of local infrastructure for source sustainability a community approach to water and will include extensive
measures as mandatory elements, like rainwater harvesting, Information, Education and communication as a key
groundwater recharge and management of household component of the mission.
wastewater for reuse, is undertaken in convergence with other • Over 9.6 crore rural households get tap water supply; notably,
government programmes/schemes. more than 6.36 crore households have been provided tap
 e Mission is based on a community approach to water and
• Th water connections since the programme was announced in
includes extensive Information, Education and Communication August 2019.
as a key component of the mission.

www.civilsdaily.com 35
Swachh Bharat Mission • The scale of India’s plastic waste pollution is staggering.
• S wachh Bharat Mission (SBM) is a country-wide campaign • Both these problems find themselves on the agenda of Swachh
initiated by the Government of India in 2014 to eliminate Bharat Missions Phase 2.
open defecation and improve solid waste management. • In a short time, 3.5 lakh villages have become plastic dump free
• I t is a restructured version of the Nirmal Bharat Abhiyan and nearly 4.23 lakh villages have minimal litter.
launched in 2009. • Nearly 178 faecal sludge treatment plants and nearly 90,000
• P hase 1 of the Swachh Bharat Mission lasted till October 2019. km of drains have been constructed.
• P hase 2 is being implemented between 202021 and 202425.
• Th
 e mission aimed to achieve an “open-defecation free” How convergence between SBM and JJM enabled
(ODF) India by 2 October 2019, the 150th anniversary of the
each other
birth of Mahatma Gandhi through construction of toilets.
• P rinciple of convergence: The late Arun Jaitley introduced
• Th
 e objectives of the first phase of the mission:
convergence as one of the primary operating principles of the
• E radication of manual scavenging.
government in his first budget speech.
• G enerating awareness and bringing about a behaviour change
• One enabling the other: The best exhibition of this can be
regarding sanitation practices.
found in the ways in which the Jal Jeevan Mission and Swachh
• B uilding capacity at the local level.
Bharat Mission work in tandem, one enabling the other.
• Th
 e second phase of the mission aims to sustain the open
• More than 10 crore toilets were built under SBM but this
defecation free status and improve the management of solid
accomplishment could have been difficult had the government
and liquid waste, while also working to improve the lives of
not had the foresight to build the toilets on a twin-pit design
sanitation workers.
that has in-situ treatment of faecal sludge.
• U nder the scheme, the Government provides subsidies for
• Now, providing tap water connections through the Jal Jeevan
constructing toilets, waste management structures, and
Mission is among the governments top priorities.
awareness campaigns to bring behaviour change.
• Managing grey water discharge: The Jal Jeevan Mission faces
• Th
 e campaign is financed by the Government of India and
a challenge similar to that faced by the Swachh Bharat Mission
state governments.
managing grey water discharge.
• Th
 e mission is split into two: Rural and Urban.
• Holistic sanitation: When household tap connections were
• I n rural areas “SBM - Gramin” is financed and monitored
provided, the Jal Jeevan Mission converged with the Swachh
through the Ministry of Jal Shakti.
Bharat Mission to achieve holistic sanitation in which the
• I n Urban areas “SBM - urban” is overseen by the Ministry of
treatment of grey water became a vital component.
Housing and Urban Affairs.
• Focus on women: The Jal Jeevan mission intends to relieve
women of the drudgery of travelling long distances to
Achievements of Swachh Bharat Mission fetch water.
• U
 niversal sanitation coverage: To accelerate the efforts to • The Swachh Bharat Mission too is centred around the dignity
achieve universal sanitation coverage and to put the focus of women.
on sanitation, the Prime Minister of India had launched the • A joint study by the Bill and Melinda Gates Foundation and
Swachh Bharat Mission on 2nd October 2014. UNICEF revealed that an overwhelming number (80 per cent)
• U
 nder the mission, all villages, Gram Panchayats, Districts, of the respondents stated that safety and security were the
States and Union Territories in India declared themselves main drivers of their decision to construct toilets.
“open-defecation free” (ODF) by 2 October 2019, the 150th • The Jal Jeevan Mission is catalysing change at the grass roots
birth anniversary of Mahatma Gandhi. level by reserving 50 per cent seats for women in village and
• T
 o ensure that the open defecation free behaviours are water sanitation committees.
sustained, no one is left behind, and that solid and liquid waste • In every village, at least five women have been entrusted with
management facilities are accessible, the Mission is moving water quality surveillance and many of them have been trained
towards the next Phase II of SBMG i.e ODF-Plus. as plumbers, mechanics and pump operators.
• S
 wachh Bharat Mission Phase-2: The government has
launched Swachh Bharat Mission Phase 2 with a focus
Impact on growth and economy
on plastic waste management, biodegradable solid waste
• I n 2006, a joint study by WSP, Asian Development Bank and
management, grey water management and faecal sludge
UKAID revealed that inadequate sanitation cost India Rs 2.4
management.
trillion 6 per cent of India’s GDP at that time.
 nder Swachh Bharat Mission Phase-2, arrangements for
• U
• The Swachh Bharat Mission, apart from preventing GDP loss,
solid and liquid waste management have been made in 41,450
provides annual benefits worth Rs 53,000 per household.
villages; nearly 4 lakh villages have minimal stagnant water.
• O
 DF Plus: Nearly 22,000 villages have been named model
village under the ODF Plus scheme, and another 51,000 villages Conclusion
are on their way to achieving this tag. The success of Jal Jeevan Mission and Swachh Bharat Mission
• S
 ludge treatment and plastic waste management: Before is a good example of convergence, one of the primary operating
the government embarked on Swachh Bharat Mission, nearly principles of the government.
1,20,000 tonnes of faecal sludge was left untreated as two-
thirds of all toilets were not connected to the main sewer lines

36 OP-ED | JUNE 2022


HEALTH SECTOR - UHC, NATIONAL HEALTH POLICY, FAMILY PLANNING, HEALTH INSURANCE, ETC.

CoWIN as a repurposed digital platform


Governance | GS2: Health & Education 
Note4Students | From UPSC perspective, the following things are important :
Prelims level : CoWIN
Mains level : Paper 2- CoWIN platform

Context Major phases of CoWIN


Seeing its success, other nations have also expressed interest in • Th
 e journey of CoWIN was staggered across three major phases,
availing CoWIN and using it as a bridge for erecting their digital with multiple additions subsequently.
health systems. Responding to this incoming interest, our prime • In phase 1, the registration process went online where
minister has offered CoWIN as a digital public good, free of cost, healthcare workers and frontline workers were sent system-
for all nations globally to adopt. generated notifications about their vaccination schedule.
• In subsequent phases, beneficiaries were allowed both walk-in
About CoWIN and online vaccination registration, along with the choice of
• I n late 2020, even before theCovid-19vaccines had arrived, location and time slot as per their convenience.
the Government of India had commenced preparations for • An assisted mode was also made available through
launching the worlds largest vaccination drive. the 240,000+ Common Service Centres (CSCs) and a
 is led to the beginning of the CoWIN journey in
• Th helpline number.
January 2021. • After ensuring successful orchestration using scalability
• S calability, modularity, and interoperability: CoWIN, or the and agile features of the platform to vaccinate individuals
Covid-19 Vaccine Intelligence Network, was developed in a over 45 years of age, the APIs of the platform were made
record time, with consideration given to scalability, modularity, available to private players at the beginning of Phase III of the
and interoperability. vaccination drive.
 e platform has been made available in English and 11
• Th • Once access to its services was opened through APIs, more than
regional languages to allow citizens across multiple states to 100 applications integrated with CoWIN for providing search,
access the platform with ease. booking and certification facilities to their users.
• T o circumvent the lack of digital access, the platform allows
for up to six members to be registered under one mobile- Way ahead
number linked account. • Th
 e inevitable question is what will we do with CoWIN when no
• C oWIN has scaled every 100 million milestone faster than any further Covid-19 vaccines are to be administered?
other platform. • Repurpose the platform: The decision is to repurpose the
• I t reached the coveted one billion registered user mark which platform as a universal immunisation platform.
only a handful of platforms have been able to achieve globally, • The credentialing service of DIVOC, used in CoWIN, has
and none in such a short time. proven to be a game-changer in the world of digital certificates.
• A key feature of the platform has been its modularity and • CoWIN service is being implemented in five other countries
evolvability. after India and receiving global acceptance for its veracity and
• Th
 e CoWIN team has been adept at keeping pace with the sound architecture.
changing policy environment and scientific research and • There is a proposal for opening the credentialing service for
developments in the administration of vaccines. more use cases in health.
• I t was never that CoWIN became the bottleneck or delayed the
implementation of our vaccination policies or drive. Conclusion
• T ime and again, CoWIN has proved itself as one of the most The story of CoWIN has truly been one of national impact and
secure and robust platforms with minimal data input and zero importance. And while the story started during the pandemic,
risk of personal data hacks. it wont end with the pandemic: it will segue into a repurposed
digital platform for more health use-cases.

www.civilsdaily.com 37
WOMEN EMPOWERMENT ISSUES - JOBS,RESERVATION AND EDUCATION

Child Marriage in India


Governance | GS2: Governance, Transparency & Accountability, Citizens Charters 
Note4Students | From UPSC perspective, the following things are important :
Prelims level : Not much
Mains level : Paper 2- Child marriage issue

Context
There has been an ongoing debate on whether increasing the age
of marriages can solve the problem of child marriage in India.

Background
• I t is defined as a marriage of a girl or boy before the age of
18 and refers to both formal marriages and informal unions
in which children under the age of 18 live with a partner as
if married.
• Th
 e Prohibition of Child Marriage (Amendment) Bill, 2021,
fixes 21 years as the marriageable age for women.

Facts and figures about the prevalence of child


marriage in India

• I nternational Center for Research on Women: India has the


14th highest rate of child marriage in the world. As many as
39,000 minor girls are being married every day in India
• Fourth National Family Health Survey (2015-16): There are
26.8% of brides in the country who were married below the
age of 18. 40% of the worlds 60 million child marriages take
place in India
• Variations across states: State In West Bengal, the mean
marriage age is only 20.9 years and almost 47 per cent of
females get married before the age of 21 years, even worse than
Bihar and Rajasthan.

• W
 idespread across India: Nearlyhalf of brides married as girls.
Every third child bride in the world is an Indian.
• S
 low improvement: There has been a decline in the incidence
of child marriage nationally (from 54% in 1992-93 to 33%)
and in nearly all states but the pace of change remains slow,
especially for girls in the age group 15-18 years.
• P
 revalence in Rural areas: Child marriage ismore prevalent in
rural areas (48 percent) than in urban areas (29 percent).
 ariations across different groups : particularlyexcluded
• V
communities, castes and tribes although some ethnic groups,
such astribal groups, have lower rates of child marriage.
• R
 ole of Education: A girl with 10 years of education has a
six times lower chance of being pushed into marriage before
she is 18.

38 OP-ED | JUNE 2022


Marriage laws in India
• P ersonal laws of various religions that deal with marriage
have their own standards, often reflecting custom.
• F or Hindus and Christians: The Hindu Marriage Act, 1955
and the Indian Christian Marriage Act, 1872 sets 18 years as
the minimum age for the bride and 21 years as the minimum
age for the groom.
• I slam: The marriage of a minor who has attained puberty
is considered valid according to the Muslim Personal Law
(Shariat) Application Act, 1937.
• N ow, the govt will have to amend the Prohibition of Child
Marriage Act, 2006, the Special Marriage Act and personal
laws such as the Hindu Marriage Act, 1955.

(2) Economic Factors


• S een as a burden: Economically, child marriages work as
mechanisms that are quick income earners. A girl child is seen
as a leeway to a large dowry, to be given to her family upon
her marriage.
• Poverty : Women from poor households tend to marry earlier.
While more than 30% of women from the lowest two wealth
quintiles were married by the age of 18, the corresponding
figure in the richest quintile was 8%.
• Trafficking : Poor families are tempted to sell their girls not
just into marriage, but into prostitution, as the transaction
enables large sums of money to benefit the girls family and
harms the girl.
• More working hands: Child marriage means more children
and more children will earn more and save family from
financial problems.
• More importance to male child: Family do not want to invest
Factors leading to child marriage in India on girls education as there is no return from her and rather
trained to become a good wife till the age of 13 or 14 and then
they are married.
(1) Social Factors
• Undervaluation of economic importance of Girls: Girls are
• L
 ack of education: A big determinant of the age of marriage is
often seen as a liability with limited economic role. Womens
education. Around 45% of women with no education and 40%
work is confined to the household and is not valued.
with primary education married before the age of 18, according
to NFHS-4.
• S
 ocial background: Child marriages are more prevalent in rural What is the Jaya Jaitly Committee?
areas and among Scheduled Castes and Scheduled Tribes. • I n June 2020, the Ministry of WCD set up a task force to look
• V
 alue of virginity: It is believed that husband needs virgin wife into the correlation between the age of marriage with issues of
and if the daughter had premarital sex it will dishonor their womens nutrition, prevalence of anemia, IMR, MMR and other
family. Some societies/castes have social stigma against girl social indices.
married after puberty. • The committee was to look at the feasibility of increasing the
• G
 ender norms: Males are more valued in Indian family and age of marriage and its implication on women and child health,
women primary role is to produce son. as well as how to increase access to education for women.
• P
 ractice of dowry: If the girl is married at lower age they
may not demand dowry as the girl is pure and believed to be Key recommendations
incarnation of goddess Laxmi. Families see it as protection • Th
 e committee has recommended the age of marriage be
against sexual assault. increased to 21 years, on the basis of feedback they received
• Th
 e dowry amount increases with the age and the education from young adults from 16 universities across the country.
level of the girl. Hence, the incentive of the system of dowry • The committee also asked the government to look into
perpetuates child marriage. increasing access to schools and colleges for girls, including
• L
 ow awareness about social protection programs: These their transportation to these institutes from far-flung areas.
schemes are often limited to providing cash transfers without • Skill and business training has also been recommended, as has
the accompanying messages to address the multi-dimensional sex education in schools.
nature of child marriage. • The committee said these deliveries must come first, as, unless
• C
 hild marriage is seen ascustom which has been borrowed they are implemented and women are empowered, the law will
from past and people do not want to change it. not be as effective.

www.civilsdaily.com 39
40 OP-ED | JUNE 2022
In a landmark judgement of Dhannu Lal v. Ganeshram,the
Supreme Court ruled that two individuals cohabiting
and staying in a live-in relationship arenot criminal
offenders.Raising the legal age of marriage for women
will further promote live-in relationship culture.

Challenges in raising the legal age of


marriage for women
• I llegal marriages: Such legislation would push a large portion
of the population into illegal marriages leading to non-
institutional births.
• Ineffectiveness of existing laws: Decrease in child marriages
has not been because of the existing law but because of an
increase in girls education and employment opportunities.
• Unnecessary coercion: The law would end up being coercive,
and in particular negatively impact marginalized communities,
such as the Scheduled Caste and Scheduled Tribes, making
them law-breakers.
• Rights of the girls are threatened: Increasing the age of
Reasons behind the decision marriage to 21 years would mean that girls will have no say in
• G ender-neutrality: With this decision, the government will be their personal matters until they are 21.
bringing the age of marriage for both men and women at par. • Exploitation of law by parents: The law has been used by
• M otherhood complexities: An early age of marriage, and parents against eloping daughters. It has become a tool for
consequent early pregnancies, also have impacts on nutritional parental control and for punishment of boys or men whom girls
levels of mothers and their children, and their overall health choose as their husbands.
and mental wellbeing. • Social validity of marriages: Even if the law declares a
• M other and Child Mortality: It also has an impact on Infant marriage before the specified age as void, in the eyes of the
Mortality Rate and Maternal Mortality Rate. community, arranged marriages will have social validity.
• W omen empowerment: The decision would empower women • This worsens the condition of the girls who are widowed even
who are cut off from access to education and livelihood due to before reaching the new legal age for marriage.
an early marriage. • Increased female infanticide: Raising the female marriage age
• P rotection from abuse: This will essentially outlaw premature in India that have high son preference and high poverty may
girls marriages and prevent the abuse of minors. have the unintended consequence of increasing the prevalence
• S ocio-economic Fronts: Increasing the legal age for the of female infanticide and sex-selective abortion.
marriage of women has enormous benefits including: Lowering
the Maternal Mortality Ratio (MMR)
• I mprovement of nutrition levels
• F inancial front opportunities will be opened up for women to
pursue higher education and careers and become financially
empowered, thus resulting in a more egalitarian society.
• M ore female labor force participation: Increasing the
marriage age will lead to more females doing graduation and
hence improving the female labor force participation ratio. The
percentage of females doing graduation will increase by at least
5-7 percentage points from the current level of 9.8 per cent.

Way Forward

(1) Need to address the root of the problems:


While children born to adolescent mothers have a higher
prevalence of stunting and low weight, experts argue that the
underlying cause is poverty.
• There is also a need to improve access to education, skill
training, and employment opportunities which are some of the
barriers for girls in pursuing higher education.

www.civilsdaily.com 41
• I t is also important to ensure a safe environment free from the (4) Increasing Accessibility to Schools:
constant threat of rape and sexual assault which is why girls are The government needs to look into increasing access to schools
married off early. and colleges for girls, including their transportation to these
• L egislation to increase the age of marriage is superficial and institutes from far-flung areas.
does not go to the root of the problems faced by young women.
(5) Need for the awareness programs:
(2) Steps must be taken to address early An awareness campaign is required on a massive scale on the
pregnancies increase in age of marriage, and to encourage social acceptance
instead of focusing on the age of marriage by extending family of the new legislation, which they have said would be far more
planning and reproductive health support which focus on effective than coercive measures.
preparation for pregnancy and delaying the first birth.

(3) Improving educational reach:


The answer to delaying child marriages lies in ensuring access to
education since the practice is a social and economic issue.

MGNREGA SCHEME

Issues with use of NMMS app in NREGA


Governance | GS2: Government Scheme/Policies 
Note4Students | From UPSC perspective, the following things are important :
Prelims level : Not much
Mains level : Paper 2- Use of NMMS app and issues

Context • Due to the traditional burden of household chores and care


The National Mobile Monitoring Software (NMMS) app seeks to work on women, the app is likely to disproportionately affect
improve citizen oversight and increase transparency in NREGA women workers.
works. This causes significant difficulty for NREGA workers. • Lack of stable network: There are challenges of
implementation with the NMMS as well.
• A stable network is a must for real-time monitoring;
About NMMS app unfortunately, it remains patchy in much of rural India.
• N
 ational Mobile Monitoring Software (NMMS) App
• NREGA Mates impacted: The app has adversely impacted
was launched by the Minister of Rural Development on
NREGA Mates as well.
May, 21 2021.
• The role of a Mate was conceptualised as an opportunity to
• Th
 e National Mobile Monitoring App is applicable for the
empower local women to manage attendance and work
Mahatma Gandhi NREGA workers for all the States/ Union
measurement in their panchayat.
Territories.
• To be a Mate, one needs to have a smartphone.
• Th
 is app is aimed at bringing more transparency and ensure
• This new condition disqualifies thousands of women who do
proper monitoring of the schemes.
not own smartphones from becoming Mates.
• Th
 e main feature of the app is the real-time, photographed,
• Erosion of transparency: The app claims to increase citizen
geo-tagged attendance of every worker to be taken once in each
oversight by bringing more transparency and ensuring proper
half of the day.
monitoring of the schemes, besides potentially enabling
 e app helps in increasing citizen oversight of the
• Th
processing payments faster.
programme.
• With no physical attendance records signed by workers
anymore, workers have no proof of their attendance and
Issues with the use of the app work done.
• W
 hile such an app may be useful in monitoring the attendance • No clarity provided on corruption: While ostensibly the
of workers who have fixed work timings, in most States, NMMSs focus on real-time, geo-tagged attendance could be one
NREGA wages are calculated based on the amount of work done way of addressing this corruption, the MoRD has not provided
each day, and workers do not need to commit to fixed hours. much clarity on either the magnitude of this corruption or the
• D
 isproportionately affects women: NREGA has historically manner in which the NMMS addresses it.
had a higher proportion of women workers (54.7% in FY 2021- • No parameters: There are no parameters established to assess
22) and has been pivotal in changing working conditions for the apps performance, either on transparency, or on quicker
women in rural areas. processed payments.

42 OP-ED | JUNE 2022


Way forward Conclusion
• S
 ocial audits: Social audits are citizen-centric institutions, The NMMS has very clear problems that will make it increasingly
where the citizens of the panchayat have a direct role and say in difficult for workers to continue working under NREGA, eroding
how NREGA functions in their panchayat. the right to work that underwrites the NREGA Act.
• A
 udits have worked well in the past, allowing the local rights
holders to be invested in decisions, and hold the administration
accountable themselves.

www.civilsdaily.com 43
POLITY

44 OP-ED | JUNE 2022


FREEDOM OF SPEECH - DEFAMATION, SEDITION, ETC.

The sedition law must go


Polity | GS2: Executive & Judiciary 
Note4Students | From UPSC perspective, the following things are important :
Prelims level : Not much
Mains level : Paper 2- Section 124A of IPC

Context • However, in 1947 it was precisely in this literal sense that the
By order dated May 11, 2022, a Bench presided over by the Chief interpretation of Section 124A was reiterated by a Bench of five
Justice of India, has directed that the petitions challenging judges of the Privy Council (AIR 1947 P.C. 82) in which it was
the Section 124A be listed for final determination in the third declared that: If the Federal Court had given their attention
week of July 2022; and that in the meantime suspend the use of to Tilaks case (1897) they should have recognised it as an
Section 124A IPC. authority by which they were bound.
• With the advent of the Constitution of India on January
26, 1950, this interpretation of Section 124A became the
Historical background of Section 124A law in force immediately before the commencement of the
• W
 ith effect from 1870, (as amended in 1955),Section 124Aof
Constitution.
the Penal Code read:

Whoever by words, spoken or written, brings or attempts Section 124A after 1950
to bring into hatred or contempt, or excites or attempts to • A rticle 372: It stated that all laws in force in the territory
excite disaffection, towards the Government established by of India immediately before the commencement of the
law in India shall be punished with imprisonment for life.
Constitution shall continue in force therein until altered or
• S edition is the vaguest of all offences known to the criminal law. repealed or amended by a competent legislature or other
• I n colonial times, it was defined expansively in order to uphold competent authority.
the majesty of British power in India. • Protected due to Article 19(2): In 1962, in criminal
• B efore 1950, there were several Court decisions in operation appeals arising from the states of Bihar and Uttar Pradesh, a
on Section 124A; amongst them was Bal Gangadhar Tilaks Constitution Bench of the Supreme Court held that though
case (1897). Section 124A clearly violated the fundamental right to freedom
• A bsence of affection: In Bal Gangadhar Tilaks case the of speech and expression in Article 19(1)(a), it was not
Privy Council declined to grant leave to appeal, affirming unconstitutional only because it was protected from challenge
that disaffection only meant absence of affection in any by the words in the interests of public order in Article 19(2).
degree towards the British rule or its administration or
representatives, and that exciting of mutiny or rebellion or Conclusion
actual disturbance of any sort was absolutely immaterial. This background has now become pertinent and relevant,
• W ith the establishment of a Federal Court by the because in a fresh batch of writ petitions filed in 2021, the
Government of India Act, 1935, in Niharendu Dutt Majumdar constitutionality of Section 124A (IPC) has been once again
And Ors. vs Emperor the Federal Court held that if the language challenged in the Supreme Court.
of Section 124A were to be read literally it would make a
surprising number of persons in India guilty of sedition and
that no one, however, supposes that it is to be read in this
literal sense

www.civilsdaily.com 45
AADHAAR CARD ISSUES

A judicial course that calls for introspection


Polity | GS2: Executive & Judiciary,Federalism 
Note4Students | From UPSC perspective, the following things are important :
Prelims level : Article 142
Mains level : Paper 2- Implications of Perarivalan case for federalism

Context • But the larger controversy as to whether the Governor in his


The recent decision of the Supreme Court of India in the case of exercise of power under Article 161 is competent at all, to
A.G. Perarivalan has stirred up a hornets nest. grant pardon or remission in respect of the offences committed
by the convicts under the Arms Act, 1959, the Explosive
Substances Act, 1908, the Passports Act, 1967, the Foreigners
Use of Article 142 to grant pardon Act, 1946, etc., besides Section 302, is not certain.
• Th
 e Court has treaded the extraordinary constitutional route
• According to the decision, it is a simple murder attracting
under Article 142.
Section 302 of the IPC and therefore the Governors decision
• Th
 e Bench decided to exercise the power of grant of pardon,
to forward the recommendation to the President is against the
remissionet al., exclusively conferred on the President of
letter and spirit of Article 161 meaning it is against the spirit of
India and State Governors under Articles 72 and 161.
federalism envisaged in the Constitution.
• A
 gainst the separation of power: Against the background of
• Constitutionality use of Article 142: There are momentous
separation of powers viz. Parliament/Legislature, Executive
issues that are flagged on the exercise of the power of remission
and Judiciary, whether the course adopted by the Bench to do
under Article 142, by the Supreme Court in the present
expedient justice is constitutional calls for introspection.
factual context.
• The first is whether Article 142 could be invoked by the Court in
Evaluating the constitutionality of decision the circumstances of the case when the Constitution conferred
• Th
 e power under Article 161 is exercisable in relation to matters express power on the Governor alone, for grant of pardon,
to which the executive power of the state extends. remission, etc., under Article 161.
• D iscretionary power under Article 161: Article 161
consciously provides a discretion to the Governor in taking a
Way forward
final call, even if it was not wide enough to overrule the advice,
• D eeper judicial examination: Whether what the State
but it certainly provides latitude to send back any resolution for
government could not achieve directly by invoking Sections
reconsideration, if, in his opinion, the resolution conflicted with
432 and 433 of Cr.P.C, without concurrence of Centre could be
constitutional ends.
allowed to take a contrived route vide Article 161 and achieve
• I n Sriharans case (2016 (7) SCC P.1), one of the references
its objectives is a pertinent issue.
placed for consideration was whether the term consultation
• This aspect requires deeper judicial examination for the sake of
stipulated in Section 435 Cr.P.C. implies concurrence.
constitutional clarity.
• I t was held that the word consultation means concurrence of
• Timeframe for the Governor: The Constitution does not lay
the Central government.
down any timeframe for the Governor to act on the advice of
• Th
 e Constitution Bench highlighted that there are situations
the Council of Ministers.
where consideration of remission would have trans-border
• In any event, even if the delay was constitutionally inexcusable
ramifications and wherever a central agency was involved, the
or was vulnerable to challenge, the final arbiter of the
opinion of the Central government must prevail.
Constitution (Article 245) could not have trumped Article 161
• B asing its conclusion on the legal position that the subject
with Article 142, which is constitutionally jarring.
matter (Section 302 in the Indian Penal Code) murder, falls
within Lists II and III (State and Concurrent lists) of the
Seventh Schedule to the Constitution, the learned judges Conclusion
concluded that the State was fully empowered to take a call To portray the remission as to what it was not in the State is a
and recommend remission in this case. sad fallout the lawlords on the pulpit may not have bargained for.
• I f it is a simple case of being a Section 302 crime, the And on the constitutional plane, this verdict deserves a relook,
reason for finding fault with the Governors decision to even a review, as it stands on wobbly foundations built with
forward the recommendation to the President may be creaky credence.
constitutionally correct.

46 OP-ED | JUNE 2022


GOODS AND SERVICES TAX (GST)

Implications of GST Council ruling


Polity | GS2: Federalism 
Note4Students | From UPSC perspective, the following things are important :
Prelims level : GST council
Mains level : Paper 2- GST council’s role in federal structure of India

Context Important aspects of the judgement


The Supreme Court of India recently ruled that The • P ower to legislate simultaneously: Article 246A gives powers
recommendations of the GST Council are not binding on either to the Union and State governments simultaneously to
the Union or the States.... legislate on the GST.
• In other words, the two tiers of the Indian Union can
About GST Council simultaneously legislate on matters of the GST (except
• Th
 e GST Council is a federal body that aims to bring together the IGST, which is in the legislative domain of the Union
states and the Centre on a common platform for the nationwide government).
rollout of the indirect tax reform. • In this case, the Government of India had argued that Neither
• A
 rticle 279 (1) of the amended Indian Constitution states that can Article 279A override Article 246A nor can Article 246A be
the GST Council has to be constituted by the President within made subject to Article 279A.
60 days of the commencement of the Article 279A. • However, cooperative federalism is to operate through the
• A
 ccording to the article, the GST Council will be a joint GST Council to bring in harmony and alignment in matters
forum for the Centre and the States. It consists of the pertaining to the GST from both governments.
following members: • Given this background, the Union government had almost
 e Union Finance Minister will be the Chairperson.
• Th delegated the powers to create laws under the GST Act Section
• A
 s a member, the Union Minister of State will be in charge of 5(1) to the GST Council.
Revenue of Finance. • Persuasive value only: The Supreme Court of India adjudicated
• Th
 e Minister in charge of finance or taxation or any other that the GST Councils recommendations are non-qualified
Minister nominated by each State government, as members. and the simultaneous legislating powers of the Union and
• Th
 e Council has to function as a platform to bring the Union State governments give only persuasive value to the Councils
and State governments together. recommendations.
• A
 s a mark of cooperative federalism, the Council shall, • The power of the recommendations rests on the practice of
unanimously or through a majority of 75% of weighted votes, cooperative federalism and collaborative decision-making in
decide on all matters pertaining to GST and recommend such the Council.
decisions to the Union and State governments.
• A
 rticle 279A (4) specifies that the Council will make Issues with voting rights in GST council
recommendations to the Union and the States on the • I nbalance in voting rights: The Union government holds one-
important issues related to GST, such as the goods and services third weight for its votes and all States have two-thirds of the
will be subject or exempted from the Goods and Services Tax. weight for their votes.
• A
 rticle 246A confers simultaneous or concurrent powers • This gives automatic veto power to the Union government
on Parliament and the state legislatures to make laws because a resolution can be passed with at least three-fourths
relating to GST. of the weighted votes.
• Th
 is article is in sharp contrast to the constitutional scheme • This imbalance in the voting rights between the Union and
that prevailed till 2017. State governments, makes democratic decision-making
difficult.
Background of the case • Equal weight to all states creates political problems: Though
• I nUnion of India Anr. vs Mohit Minerals Pvt. Ltd., the Supreme all the States are not equal in terms of tax capacity, everyone
Court of India on May 19, 2022 ruled on a petition relating to has equal weight for their votes.
the levy of Integrated Goods and Services Tax (IGST) on ocean • This creates another political problem as the smaller States
freight paid by the foreign seller to a foreign shipping company. with lesser economic stakes can be easily influenced by
• Mohit Minerals had filed a writ petition before the Gujarat High interest groups.
Court challenging notifications levying IGST on the ground • Debate on political lines: The debates in the GST Council will
that customs duty is levied on the component of ocean freight be on political lines r ather than on the economics of taxation.
and the levy of IGST on the freight element in the course of • When the States governed by Opposition parties are vocal on
transportation would amount to double taxation. counter-points, the States governed by the same party at the
• G ST is paid by the supplier, but if the shipping line is located in Union government are mute spectators.
a non-taxable territory, then GST is payable by the importer,
the recipient of service. Way forward
• O cean freight is a method of transport by which goods and • W
 ork in a harmonised manner: The Supreme Court
cargo is transported by ships through shipping lines. has recorded, Since the Constitution does not envisage a
repugnance provision to resolve inconsistencies between the
Central and State laws on GST, the GST Council must ideally

www.civilsdaily.com 47
function, as provided by Article 279A(6) in a harmonised Conclusion
manner to reach a workable fiscal model through cooperation Given the lopsided power structure favouring the Union
and collaboration. government in the GST Council, it is against the spirit of
• C
 ooperative federalism: The nuanced understanding of democracy and federalism that the finances of governments can
cooperative federalism shows that there is no space for one- be left to such bodies.
upmanship in either of the two tiers of the Indian federal
government and particularly for the Union government under a
quasi-federal Constitution.

DEATH PENALTY ABOLITION DEBATE

Procedural gaps in death penalty sentencing


Polity | GS2: Executive & Judiciary 
Note4Students | From UPSC perspective, the following things are important :
Prelims level : Not much
Mains level : Paper 2- Plugging the gaps in death penalty sentencing

Context • There is utter confusion across all levels of the judiciary on the
In a judgment delivered last month, the Supreme Court, in Manoj requirements of the framework laid down in the Bachan Singh
& others v. State of MP, embarked on a significant attempt to case and its implementation.
reform the administration of the death penalty. • Nature of crime a dominant consideration: An important
reason for the breakdown is that factors relating to the crime
the nature of the crime and its brutality are often dominant
Background: Crisis in the death penalty considerations, and there is barely any consideration of
sentencing mitigating factors.
• Th
 ere has long been a judicial crisis in death penalty sentencing • Little discussion on mitigating factors: There has been very
on account of unprincipled sentencing, arbitrariness and little discussion on bringing the socioeconomic profile of death
worrying levels of subjectivity. row prisoners as a mitigating factor into the courtroom.
• Th
 e crisis has been acknowledged by the Supreme Court,
the Law Commission of India, research scholars and civil
Significance of the SC judgment in Manoj & others
society groups.
• C
 rime-centric nature: Death penalty sentencing has been, by v. State of MP
and large, crime-centric. • E fforts to plug the gap: The judgement identifies the lacuna
• Th
 is approach goes against the requirements imposed as an explicit concern, states the consequences that flow from
on sentencing judges by the Supreme Court in Bachan such a vital gap, and suggests measures to plug it.
Singh (1980). • Recognising reformation: A striking part of the judgment is
its commitment to recognising reformation as integral to
the Indian criminal justice system, especially death penalty
The framework laid down in the Bachan Singh case sentencing.
• T ake into account factors relating to crime and the accused:
• Procedural threshold: The judgment is clear that certain
This framework made it binding for the sentencing judges to
procedural thresholds must be met for sentencing to be fair and
take into account factors relating to both the crime and accused
explicitly rejects (once again) the idea that death sentences can
and assign them appropriate weight.
be determined solely on crime-based considerations.
• J udges couldnt decide to impose the death penalty only on the
• The verdict recognises that aspects of the accuseds life, both
basis of the crime.
pre-offence and post-offence in prison, are relevant.
 e background of the accused, the personal circumstances,
• Th
• As practical steps in this process, the judgment asks courts to
mental health and age were considerations a sentencing judge
call for reports from the probation officer as well as prison and
had to account for.
independent mental health experts.
• J udges were required to weigh mitigating and aggravating
• Right of the accused to present mitigating factors: The right
factors to ascertain if a case was fit for the death sentence
of the accused to present mitigating factors and rebut the state,
and also determine if the option of life imprisonment was
if necessary, is also recognised.
unquestionably foreclosed.
• Psychological and philosophical aspect taken into account:
There is now overwhelming evidence from psychology that
Why there is a crisis in death penalty sentencing? criminality cannot just be reduced to terrible decisions by
• Th
 e four decades since Bachan Singh have shown us that this individuals in the exercise of their free will.
framework has been followed more in breach.

48 OP-ED | JUNE 2022


 ll our actions are a result of a complex web of biological,
• A • Requirement for normative basis: The Supreme Court will
psychological, and social factors and that understanding has have to provide a rigorous normative basis for consideration of
a very significant bearing on discussions on criminality and these factors.
punishment. • In the absence of such foundations, death penalty sentencing
will continue to be unprincipled and sentencing judges are not
Challenges going to understand the need for this wide range of sentencing
• I mplementation issue: Apart from this issue of information.
implementation, even if detailed and high-quality sentencing
information is to come into our courtrooms, a bigger Conclusion
challenge awaits. The significance of last months judgment, authored by Justice
• Th
 e judicial treatment of sentencing information is a Pandoras Ravindra Bhat, is that it takes this problem head-on. It identifies
box that will inevitably have to be opened. the lacuna as an explicit concern, states the consequences that
flow from such a vital gap, and suggests measures to plug it.

PARLIAMENT - SESSIONS, PROCEDURES, MOTIONS, COMMITTEES ETC

Parliament & Women


Polity | GS2: Parliament & State Legislatures 
Note4Students | From UPSC perspective, the following things are important :
Prelims level : Not much
Mains level : Paper 2- Making the Parliament inclusive

Context • The scenario for women Members of Legislative Assemblies


Due to systemic issues, Parliament continues to alienate women. (MLAs) across all state assemblies in India is even worse, with
The number of women representatives is still considerably small, the national average being a pitiable 9%.
but even more subtly, Parliament as a workspace continues to be • In the last 75 years of independence, womens representation in
built exclusively for men. Lok Sabha has not even increased by 10%.

Women’s participation in the initial years Reasons for Low Representation


• I n 1952, when the Indian Republic held its first Parliamentary • G ender stereotypes:
session, there were 39 strong, intelligent, and passionate • The role of managing household activities has been traditionally
women as its member. assigned to women.
• L eading in the world in inclusiveness : At a time when women • Women should be encouraged to move outside their
formed only 1.7% of the total members of the United States stereotypical roles and participate in the decision-making
Congress and 1.1% of the Parliament of the United Kingdom, process of the country.
India was leading the way in the fight towards more inclusive • Competition:
world democracies with 5.5% women representation. • Politics, like any other field, is a field of competition. At the
• W omen played an important role in India’s struggle for end of the day, Women politicians are their competition as well.
independence and that contribution was reflected in their • Many of the politicians fear that, in case of women reservation,
presence in the parliament. their seats can rotationally be reserved for women
• W hat happened in 1952 was a highly progressive step, but 70 candidates, thus, making them lose any chance of even fighting
years hence, it seems we have strayed from that path. from their seats.
• Lack of Political Education:
• Education influences the social mobility of women. Formal
Electoral representation of women in India: education such as provided at educational institutions
Current scenario create opportunities for leadership, and impart leadership
 s per the data compiled by the Inter-Parliamentary Union, of
• A essential skills.
which India is a member, women represent 14.44% of the total • Because of a lack of understanding of politics, they do not
members of the Lok Sabha. know about their basic and political rights.
 s per the latest Election Commission of India (ECI) data:
• A • Work and Family:
 s of October 2021, Women represent 10.5% of the total
• A • Uneven distribution of family care responsibilities means that
members of the Parliament. women spend far more time than men in home- and child-care.

www.civilsdaily.com 49
• A
 woman not only has to give her time and effort at time of • It proposes to amend the Constitution of India to reserve
pregnancy and childbirth, but it continues till the child is 1/3rd of all seats in the Lower house of Parliament of India,
dependent on parents for care. the Lok Sabha, and in all state legislative assemblies for women.
• L
 ack of Political Networks: • Reservation for Women in Panchayati Raj Institutions:
 e lack of openness in political decision-making and
• Th • Article 243D of the Constitution ensures participation of
undemocratic internal processes pose a challenge for all women in Panchayati Raj Institutions by mandating not less
newcomers, but particularly for women as they tend to lack than one-third reservation for women out of total number
insider knowledge or political networks. of seats to be filled by direct election and number of offices of
• L
 ack of Resources: chairpersons of Panchayats.
 ecause of their low proportion in the inner political party
• B • Parliamentary Committee On Empowerment Of Women:
structure of India, women fail to gather resources and support • The Committee on Empowerment of Women was constituted
for nurturing their political constituencies. for the first time in 1997 during the 11th Lok Sabha of the
• W
 omen do not get adequate financial support from the political Parliament for improving the status of women.
parties to contest the elections. • The Members of the Committee are expected to work
• S
 ocial Conditioning: together for the empowerment of women cutting across party
 ey have to accept the dictates imposed on them and bear
• Th affiliations.
the burden of society.
• P
 ublic attitudes not only determine how many female Way Forward
candidates win a general election but also directly and It is theneed of the hourin a country like India to have equal
indirectly how many are considered and nominated for office. participation of allthe sections of society in mainstream political
• U
 nfriendly Environment: activity therefore necessary steps should be taken to promote it.
• O
 verall political parties environment too is not women- • Passage of Womens Reservation Bill:
friendly, they have to struggle hard and face multi- • All political parties have to reach a consensus and ensure
dimensional issues to create space for them in the party. the passage of the Women’s Reservation Bill, which calls
 ere has been increasing violence in politics. A significant
• Th for reserving 33 percent of seats in Parliament and all state
rise in criminalization, corruption, insecurity has driven legislative assemblies for women.
women out of the political arena. • Promoting local bodies female lawmakers on State level:
• There is a pool of women out there who have been sarpanches,
Implications of Lack of women representation and members of local bodies, with experience of governance at
• A bsence of gender-neutral language: A closer look at the local level over a period of three decades.
our parliamentary discourse and communication reveals • They are waiting to play a larger role in state assemblies and in
a concerning and disconcerting absence of gender- Parliament.
neutral language. • Women Quotas in political parties:
• A fter 75 years of Independence, Parliament often refers to • The Gill formula: There is a need to implement the proposal of
women in leadership positions as Chairmen and party men. the Election Commission of India (ECI) to make it mandatory
• I n the Rajya Sabha, the Rules of Procedure continue to refer for the recognized political parties to ensure putting of
to the Vice-President of India as the ex-officio Chairman, minimum agreed percentage for women in State Assembly
stemming from the lack of gender-neutral language in the and Parliamentary elections, so as to allow them to retain the
Constitution of India. recognition with the Election Commission as political parties.
• The alarming degree of usage of masculine pronouns assumes a • Promoting Inner party democracy:
power structure biased towards men. • A truly democratic political party in which the various positions
• L ack of gender-neutral Acts: The issue further extends to like president, vice-president, secretary, treasurer etc are filled
law-making. by the election process, will give a fair chance to all female
• I n the last decade, there have hardly been any gender- members of the party.
neutral Acts. • Deconstructing stereotypes:
• A cts have made references to women not as leaders or • Society needs to deconstruct the stereotype of women as
professionals (such as policemen), but usually as victims limited to household activities only.
of crimes. • It is important for all institutions (state, family and
 e root of such instances lies with a gender-conforming
• Th community) to respond to womens specific needs such as
Constitution. bridging gaps in education, renegotiating gender roles, the
• I n its present state, the Constitution reinforces historical gender division of labor and addressing biased attitudes.
stereotypes that women and transgender people cannot be • Correcting the language: Internationally, even mature
in leadership positions, such as the President and the Vice- democracies that legalised universal suffrage after India, such
President of India. as Canada (1960 for Aboriginal women), Australia (1962 for
• Th
 is represents the failure of the many Union Governments Indigenous women), and the United States (1965 for women of
which did not take the initiative of amending it. African-American descent), have now taken concrete measures
• I n the past, amendments have been brought about to make towards gender-inclusive legislation and communication.
documents gender neutral.
• I n 2014, under the leadership of the then Speaker of the Lok Conclusion
Sabha, Meira Kumar, the Rules of Procedure of the Lok Sabha In the 21st century, when people of all genders are leading the
were made entirely gender neutral. world with compassion, strength and ambitions, the Indian
Parliament needs to reflect on its standing.
Government Efforts
• Th
 e Women’s Reservation Bill 2008:

50 OP-ED | JUNE 2022


PARLIAMENT - SESSIONS, PROCEDURES, MOTIONS, COMMITTEES ETC

Upper House, a question


Polity | GS2: Parliament & State Legislatures 
Note4Students | From UPSC perspective, the following things are important :
Prelims level : Article 89
Mains level : Paper 2- Role of Rajya Sabha

Context • By amending Section 3(1) of the Representation of Peoples


This article seeks to re-articulate a question pertaining to the Act 1952 and doing away with the domicile requirement, the
composition of the Council of States. Government removed this fig leaf also in 2003.
• A five-judge bench did not uphold tha challenge to this
judgement.
Historical background and CAD over the issue of • This amendment and the subsequent judgment buried the
second chamber earlier practice of individuals entering the Rajya Sabha from
• L okanath Misra led the charge against a federal second chamber anywhere based upon rather dodgy but still some form of
in the Constituent Assembly stating that there was not need domicile credentials.
for the second chamber and also that it will not serve any • All states do not have bicameral legislature: Twenty-four
useful purpose. states have unicameral legislatures, that is, only one legislative
• S hibban Lal Saksena, was equally emphatic: He said that as per body, and only six states are bicameral.
their experience, the Upper House acts as a clog in the wheel • If the bulk of the states can make do with one House why not
of progress. the Centre?
• Th
 ey were not the only ones who had concerns. Other • R ajya Sabha as continuous house argument: It is also argued
members expressed them too in different contexts during the that the Rajya Sabha is a continuous House as opposed to the
Constituent Assembly debate on draft Article 67. Lok Sabha that gets mandatorily dissolved every five years if
not sooner.
Issues with the role of Rajya Sabha • That can be fixed with a simple amendment to Article 83 (2)
• U
 nable to protect the interest of the States: Article 1(1) of that should state that Lok Sabha would remain in existence till
the Indian Constitution states India, that is Bharat, shall be a the time its successor body/house is not constituted.
Union of States. • Article 83 (1) would stand deleted and consequential
• Th
 erefore, the primary responsibility of a Council of States amendments can be carried out to other parts of the
would be to protect the interests of the states vis a vis Constitution.
the Union.
• Th
 ere is hardly any empirical evidence that substantiates that Conclusion
the Rajya Sabha has measured upto the task ever since it came It would be instructive to keep in mind that the Basic Structure
into existence on April 3r 1952. doctrine enunciated by the Supreme Court in Re: Kesvananda
• N
 o focus on states: From 1952 to 2003, at least there was a Bharti holds parliamentary democracy to be basic structure, not
veneer of a state focus when it was mandatory that any citizen bicameralism.
desirous of contesting a Rajya Sabha election had to be an
elector from that particular state.

DEMOCRATIC BACKSLIDING IN AMERICA

Democratic Backsliding in America


Polity | GS2: Comparison Of The Indian Constitutional Scheme With That Of Other Countries 
Note4Students | From UPSC perspective, the following things are important :
Prelims level : Not much
Mains level : Paper 2- Abortion rights in the US

Context Background of the Roe v Wade case


With the US Supreme Courts overturning of abortion as a • B
 odily autonomy: Roe, the 1973 outcome of an unmarried
constitutionally guaranteed right, America has taken another womans crusade for bodily autonomy, had declared overbroad,
step towards democratic backsliding. and consequently unconstitutional, a provision of the Texas

www.civilsdaily.com 51
Penal Code which permitted only those abortions that were • This Amendment, the court said, allowed protection of liberty
procured or attempted by medical advice to save the life of and privacy, something the state could not impinge upon.
the mother. • Not absolute right: The 1973 court also argued that this right
• R
 ight to abortion: While locating the right of privacy within was not absolute, limited as it would be by considerations of
the guarantee of personal liberty enshrined in the fourteenth protecting potential life.
amendment of the American constitution, Roe embodies a
supervening constitutional right to abortion emanating from Issues with the overturning of Roe Vs. Wade case
this right of privacy. • N o constitution can anticipate the evolution of rights:
• Th
 e right to abort was held to be a constitutionally protected Abortion was not mentioned in the 1787 constitution, nor
right within the right of privacy. explicitly in the 1868 amendment.
• R
 ecognition of states’ rights: The decision simultaneously • That is because women were not autonomous political agents
recognised the states interest in protecting the life of the at that time.
foetus as also the life of the mother. • Until they were given the right to vote in 1920, they were not
• R
 oe is not only relevant as a progressive trailblazer for a constitutional category in the US, as was true virtually
reproductive rights in the United States but is also fundamental everywhere in the world.
to constitutional jurisprudence globally for the interpretative • Women are autonomous agents today. Norms change;
tools it employed. rights evolve.
• Ignores rape and incest: As the courts dissent note puts it, this
Overturning of Roe Vs Wade case majority decision ignore rape and incest.
• Th
 e US Supreme Court on June 24 overturned a half-century- • If abortion as a right is dissolved, women can be forced to give
old right to abortion, granted by a 1973 Supreme Court such unwanted births.
decision in the Roe vs Wade case. • The majority decision of the court is silent on this
• N
 o nationwide right to abortion: With a 5-4 majority, the important matter.
court has said that American women have no nationwide right • Against the right to participate equally in economic and
to abortion. social life: Having a child is not simply a deeply moral
• R
 ather, state legislatures should decide whether women can obligation to the unborn.
have that right in their respective states. • It is also a decision that affects the ability of women to
• C
 oncerns about the life of the unbors: In the courts opinion, participate equally in (the nations) economic and social life.
the right to privacy stemming from the 14th Amendment is not • These words are from a later decision, known as Casey (1992),
relevant, for abortion concerns not only the pregnant woman when the US Supreme Court added the concept of undue
but also the life of the unborn. burdens to support the idea of abortion.
• N
 ot mentioned in the 1787 constitution: Moreover, the court • Right over body ignored: Men dont have to deal physically
said, abortion is neither enumerated as a right in the original with pregnancy, whereas the foetus grows inside a womans
1787 constitution nor is it consistent with American history body for nine months.
and tradition. • If men have the right over their bodies, which cant be taken
• T
 aking away the right once granted : In a democracy, can a away by the government,then women should also have
right once granted be taken away? autonomy over their bodies as well.
• A
 s the worlds oldest surviving democracy, the United States has • Maternity must be a voluntary choice.
figured prominently in this debate. • There is no going back to the notion of rights as they were
• W
 ith the overturning of Roe vs Wade, this debate has now viewed in the 18th century unequal, unneutral, unbalanced.
become wider.
Conclusion
Was the right to abortion constitutionally Typically, as they evolve and deepen, democracies allow the arc
justified? of rights to broaden further, not retreat. After this judgment in
• P
 rotection of liberty and privacy: The 1973 court decision the US, the stakes have become much higher and the democratic
allowing the right to abortion was based on the 14th challenges bigger.
Constitutional Amendment (1868).
 ven though abortion was not mentioned in the 1787
• E
US Constitution, abortions defence was derived from the
1868 Amendment

52 OP-ED | JUNE 2022


ANTI DEFECTION LAW

The anti-defection law political facts, legal fiction


Polity | GS2: Parliament & State Legislatures 
Note4Students | From UPSC perspective, the following things are important :
Prelims level : Anti-defection law
Mains level : Paper 2- Paragraph 4 of Tenth Schedule

Context • However, in most cases there is no factual merger of original


The ongoing political crisis in Maharashtra, and many others political parties at the national (or even regional) level.
before it, are grim reminders of what the Tenth Schedule can and • Creation of legal fiction: Paragraph 4 seems to be creating
cannot do. a legal fiction so as to indicate that a merger of two-third
members of a legislature party can be deemed to be a merger
About 10th Schedule of political parties, even if there is no actual merger of the
• I n 1985 the Tenth Schedule, popularly known as the anti- original political party with another party.
defection law, was added to the Constitution. • In statutory interpretation, deemed has an established
• B ut its enactment was catalyzed by the political instability after understanding.
the general elections of 1967. • The word deemed may be used in a law to create a legal fiction,
• Th
 is was the time when multiple state governments were and give an artificial construction to a word or a phrase used in
toppled after MLAs changed their political loyalties. a statute.
• Th
 e purpose of the 1985 Constitution Amendment was to • In other cases, it may be used to include what is obvious or
bring stability to governments by deterring MPs and MLAs what is uncertain.
from changing their political parties on whose ticket they • In either of these cases, the intention of the legislature in
were elected. creating a deeming provision is paramount.
• Th
 e penalty for shifting political loyalties is the loss of
parliamentary membership and a bar on becoming a minister. Merger exception and issues with it
• Th
 e merger exception was created to save instances of
Provisions of the 10th Schedule the principled coming together of political groups from
• I nstances of floor crossing have long gone unchecked and disqualification under the anti-defection law, and to strike a
unpunished. compromise between the right of dissent and party discipline.
• I n part, this can be attributed to the exemption given to • In the absence of mergers of original political parties, the
mergers between political parties which facilitate bulk deeming fiction could, presumably, be used as a means to allow
defections. mergers of legislature parties.
• D isqualification provision: The second paragraph of the Tenth • Encouraging defection: Reading Paragraph 4 in this manner
Schedule allows for disqualification of an elected member of would empower legislature parties to solely merge with another
a House if such member belonging to any political party has party, and thus, practically ease defection.
voluntarily given up membership of their party, or if they vote
in the House against such partys whip. What if sub-paragraphs are read conjunctively?
• E xceptions: Paragraph 4 creates an exception for mergers • F or a valid merger then, an original political party has to first
between political parties by introducing three crucial concepts merge with another political party, and then two-thirds of the
that of the original political party, the legislature party, and legislature party must support that merger.
deemed merger. • Given the politics of current times, stark differences in parties
• W hat is the legislature party? It means the group consisting of respective ideologies, and deep-seated historical rivalries, it is
all elected members of a House for the time being belonging to unimaginable how a merger between major national or regional
one political party. parties would materialise.
• O riginal political party: An original political party means the
Way forward
political party to which a member belongs (this can refer to the
• R emove Paragraph 4: In a situation where either reading of
party generally, outside of the House )..
Paragraph 4 in its current form yields undesirable results, its
How Paragraph 4 of the 10th Schedule deals deletion from the Tenth Schedule is a possible way forward.
• The Law Commission in 1999 and the National Commission
with mergers?
to Review the Working of the Constitution (NCRWC) in 2002
• P aragraph 4 is spread across two sub-paragraphs, a conjoint
made similar recommendations.
reading of which suggests that a merger can take place only
• Revisiting by Supreme Court: Till that happens, an academic
when an original party merges with another political party,
revisiting of the Tenth Schedule by the Supreme Court, so as to
and at least two-thirds of the members of the legislature party
guide future use of the anti-defection law, is timely and should
have agreed to this merger.
happen soon.
• I t is only when these two conditions are satisfied that a group
of elected members can claim exemption from disqualification
on grounds of merger. Conclusion
• Th
 e second sub-paragraph (of Paragraph 4) says that a party Neither of these two interpretations of Paragraph 4complements
shall be deemed to have merged with another party if, the mischief that the Tenth Schedule was expected to remedy
and only if, not less than two-thirds of the members of the that of curbing unprincipled defections. Amending it is the need
legislature party concerned have agreed to such merger. of the hour.

www.civilsdaily.com 53
INTERNATIONAL
RELATIONS

54 OP-ED | JUNE 2022


FOREIGN POLICY WATCH: INDIA-AFGHANISTAN

Why India must engage Taliban


International Relations | GS2: Bilateral, Regional and Global Groupings and agreements involving India 
Note4Students | From UPSC perspective, the following things are important :
Prelims level : Not much
Mains level : Paper 2- India’s approach in dealing with the Taliban

Context So, what should be India’s approach toward


It is good that India has extended humanitarian assistance to the Taliban?
Afghanistan at this time through international agencies and not • I t is argued that both principle and pragmatism demand that
let its unhappiness with the Talibans policies come in the way. India should not do business with the Taliban.
• However, Pakistan has continued to sponsor terror and
India’s recent engagement with Afghanistan yet India has continued to engage it and has maintained a
• R
 ecently, the Ministry of External Affairs announced that diplomatic presence in Islamabad.
a team led by J P Singh, Joint Secretary (PAI) is currently • India cannot argue that the diplomatic door must be kept open
on a visit to Kabul to oversee the delivery operations of our for Pakistan because its a neighbour while it can be shut on the
humanitarian assistance to Afghanistan. Taliban because Afghanistan directly impacts Indian security.
• Th
 e MEA clearly implied that this engagement should be seen • Engagement with Taliban: An engagement with the Taliban
only in the limited context of assistance to the Afghan people would at least give an opportunity to convey Indian concerns
• Th
 e continuance of humanitarian assistance can be only directly and encourage those elements within the group who
one, though an important, segment of interaction; other wish to open up its diplomatic choices.
aspects, especially security issues and later, connectivity and • Exploit contradiction: Far from being a monolith, the Taliban
investments, as Afghanistan stabilises, have to be part of the has significant tribal and regional contradictions.
dialogue with the Taliban. • Therefore, India should not leave the Afghan arena entirely
to Pakistan and China because of the social manifestation of
Why Afghanistan matters to India’s security Taliban theology.
• A fghanistan impacts India’s security. • The Taliban is here to stay and for India, there is no alternative
• I t has, in the past, provided space to al Qaeda with which the but to deal with it even while repeating, if it wishes, the
Taliban had a special relationship. mantra of inclusive government.
• A fghanistan has an ISIS presence too. • India should also maintain contacts with the leaders of the
• O f special concern to India are the Talibans ties with the ousted Republic, especially as the Taliban itself wants them to
Lashkar-e-Taiba and Jaish-e-Mohammed. return to the country.
• A recent United Nations report has emphasised that the
Talibans connections with these groups have not been severed. Conclusion
All in all, the sooner India establishes a permanent presence
in Kabul the better for the pursuit of national interests in the
external sphere. This is not an exercise in evangelism but the cold
and undeterred pursuit of interests.

FOREIGN POLICY WATCH: INDIA-PAKISTAN

India-Pakistan ties and the mirror of 2019


International Relations | GS2: India & Its Neighborhood - Relations 
Note4Students | From UPSC perspective, the following things are important :
Prelims level : Not much
Mains level : Paper- India-Pakistan relation

Context Positive developments in the relations


An official delegation from Pakistan was in New Delhi recently • S tarting from February, India has been sending through
to hold talks with its Indian counterparts under the aegis of the Pakistan consignments of wheat, via the World Food
Indus Water Treaty. Programme, to the Taliban-run Afghanistan.

www.civilsdaily.com 55
• E
 vidently, channels of communication between the two Way ahead
governments are working and open hostility has subsided, if • Th
 ere are some low-hanging fruits which can be plucked the
not vanished completely. moment a political go-ahead is given.
• C
 hina factor: The change has been driven by realist • These include a deal on the Sir Creek dispute, an agreement
considerations that surfaced during the Ladakh border crisis on for revival of bilateral trade, return of High Commissioners to
the Line of Actual Control with China in the summer of 2020. the missions in Delhi and Islamabad, and build-up of diplomatic
• Th
 e recent change of government in Pakistan, including Imran missions to their full strength.
Khans removal, is seen as a positive in New Delhi. • Demilitarisation of the Siachen glacier is still seen to be off
• Th
 e official Indian establishment has had close ties with both the table as the Indian proposal is believed to be unacceptable
the Pakistan Muslim League-Nawaz and the Pakistan Peoples to the Pakistan Army.
Party that are now part of the government. • A window of opportunity would possibly open in Pakistan after
the next elections, which are scheduled next year but could be
Countering the collusive military threat from held earlier.
China and Pakistan
• Th
 e border crisis in Ladakh raised the spectre of a collusive Conclusion
military threat between China and Pakistan. India must shift course from the belligerence it has displayed and
• S uch a challenge cannot be effectively dealt with by the profited from earlier in favour of proper diplomatic and political
military alone and would need all the instruments of the state engagement with Pakistan.
diplomatic, economic, informational, and military to act
in concert.
• T o prevent such a situation, India’s National Security Adviser
Ajit Doval opened backchannel talks with Pakistan.

FOREIGN POLICY WATCH: INDIA-PAKISTAN

India needs a forward-looking strategy on Pakistan


International Relations | GS2: Bilateral, Regional and Global Groupings and agreements involving India 
Note4Students | From UPSC perspective, the following things are important :
Prelims level : Not much
Mains level : Paper 2- Forward-looking strategy on Pakistan

Context • Under Prime MinisterNarendra Modi, India has begun to reset


India’s approach in dealing with Pakistan today is very different the terms of the engagement agenda.
from the framework that emerged at the dawn of the 1990s. • Change in regional and international context: Meanwhile,
the regional and international context has also altered in many
ways since the early 1990s essentially in India’s favour.
Terms of engagement with Pakistan
• F rom the 1990s, for nearly three decades, it was Pakistan that
had the political initiative. Reset in engagement
• Th
 e turmoil in Kashmir, the international focus on nuclear • I ndia’s transformed relations with the US, the resolution
proliferation, and the relentless external pressure for a of Delhis dispute with the global nuclear order, and getting
sustained dialogue with Pakistan put Delhi in a difficult the West to discard its temptation to mediate on Kashmir
situation. enormously improved India’s diplomatic position.
• I f Pakistan was on the political offensive, a series of weak • But the most consequential change has been in the
coalition governments in Delhi were forced onto the back foot. economic domain.
• A t the heart of Pakistans ambition was to change the status quo • The persistent neglect of economic challenges left Pakistan in
in Jammu and Kashmir. an increasingly weaker position in relation to India.
• I slamabad also played up to the concerns in Western • If India has inched its way into the top six global economies,
chancelleries that the conflict in Kashmir might escalate to the Pakistan today is broke.
nuclear level. • Modi had the opportunity to build on these shifting fortunes
• Th
 e new international consensus that Kashmir is the of Delhi and Islamabad and develop a three-pronged strategy
worlds most dangerous nuclear flashpoint aligned well with of his own.
Pakistans strategy. • India bet that the heavens wont fall if Delhi stops talking to
• D elhi had no option but to respond, but any move to counter Islamabad or negotiating with Pakistan-backed militant groups
Pakistan would make the situation worse. in Kashmir.

56 OP-ED | JUNE 2022


• D
 elhi has been unafraid of staring at nuclear escalation in • Getting Pakistans army and its political class to be more
responding to Pakistans cross-border terrorism. practical in engaging India is certainly a tall order; but Delhi can
• B
 y changing the constitutional status of Kashmir in 2019, afford to make a move.
India has reduced the scope of India’s future negotiations with
Pakistan on Kashmir. Conclusion
While there can be much disagreement on Pakistans capacity
Way forward to respond, Delhis new initiatives can reinforce the positive
• P
 akistans hand today is much weaker than in the 1990s and evolution of Indian foreign policy, and expand the space for
Delhis room for manoeuvring has grown, notwithstanding the Indian diplomacy in the region and beyond.
challenges it confronts on the China border.
 at opens some room for new Indian initiatives toward
• Th
Pakistan.

FOREIGN POLICY WATCH: INDIA-PAKISTAN

Indus Waters Treaty (IWT): An enduring


agreement bridging India-Pakistan ties
International Relations | GS2: India & Its Neighborhood - Relations 
Note4Students | From UPSC perspective, the following things are important :
Prelims level : Not much
Mains level : Paper 2- Lessons from Indus Water Treaty

Context • This year, the commission met twice, in March in Islamabad,


The 118th meeting of the Permanent Indus Commission (PIC) Pakistan, and then in New Delhi, in May.
comprising the Indus Commissioners of India and Pakistan held • It is a rare feat that despite the many lows in India-Pakistan
on May 30-31, 2022 in New Delhi. relations, talks under the treaty have been held on a
regular basis.
Indus Waters Treaty, 1960: A background
• A fter years of arduous negotiations, the Indus Waters Treaty Some disagreements
was signed in Karachi on September 19, 1960, by then Indian • Th
 roughout its existence, there have been many occasions
Prime Minister Jawaharlal Nehru and then Pakistani President during which differences between the two countries were
Ayub Khan, negotiated by the World Bank. discernible.
• A ccording to this agreement, control over the water flowing in • Both countries held different positions when Pakistan raised
three eastern rivers of India the Beas, the Ravi and the Sutlej objections regarding the technical design features of the
was given to India Kishanganga and Ratle hydroelectric power plants.
 e control over the water flowing in three western rivers
• Th • Differences were also discernible when Pakistan approached the
of India the Indus, the Chenab and the Jhelum was given World Bank to facilitate the setting up of a court of arbitration
to Pakistan to address the concerns related to these two projects referred
 e treaty a llowed India to use western rivers water
• Th to in Article IX Clause 5 of the treaty, and when India requested
for limited irrigation use and unrestricted use for power the appointment of a Neutral Expert referent to Clause 2.1 of
generation, domestic, industrial and non-consumptive uses Article IX.
such as navigation, floating of property, fish culture, etc. while • Eventually, on March 31, 2022, the World Bank, decided to
laying down precise regulations for India to build projects resume two separate processes by appointing a neutral expert
• I ndia has also been given the right to generate hydroelectricity and a chairman for the court of arbitration.
through the run of the river (RoR) projects on the Western • The appointment of a neutral expert will find precedence to
Rivers which, subject to specific criteria for design and address the differences since under Article IX Clause 6 of the
operation is unrestricted. treaty provisions, Arbitration shall not apply to any difference
 e Permanent Indus Commission, which has a commissioner
• Th while it is being dealt with by a Neutral Expert.
from each country, oversees the cooperative mechanism and • Pakistan, invoking Article VII Clause 2 on future cooperation,
ensures that the two countries meet annually (alternately in raised objections on the construction and technical designs of
India and Pakistan). the Pakal Dul and Lower Kalnai hydropower plants.
• Similarly, India has raised concerns on issues such as Pakistans
blockade of the Fazilka drain.

www.civilsdaily.com 57
Lessons from the treaty Potential for cooperation
• E
 ngagement between conflicting nations: The treaty is an • J oint research: Recognising common interests and mutual
illustration of a long-standing engagement between the benefits, India and Pakistan can undertake joint research on
conflicting nations that has stood the vagaries of time. the rivers to study the impact of climate change for future
• W
 ater management cooperation: The treaty is considered cooperation (underlined in Article VII).
one of the oldest and the most effective examples of water • Potential for cooperation and development: The Indus
management cooperation in the region and the world. Waters Treaty also offers great potential for cooperation and
• A
 voiding conflict: With the exception of differences on a development in the subcontinent which can go a long way in
few pending issues, both countries have avoided any actions ensuring peace and stability.
resulting in the aggravation of the conflict or acted in a
manner causing conflict to resurface. Conclusion
Given that both India and Pakistan have been committed to
manage the rivers in a responsible manner, the Treaty can be a
reference point to resolve other water-related issues in the region
through regular dialogue and interaction.

INDIAN OCEAN POWER COMPETITION

Indo-Pacific Economic Framework presents opportunities


International Relations | GS2: Bilateral, Regional and Global Groupings and agreements involving India 
Note4Students | From UPSC perspective, the following things are important :
Prelims level : IPEF countries
Mains level : Paper 2- IPEF opportunities and challenges

Context • The IPEF empowers the Biden administration to shape rules


The official launch of the Biden Administrations Indo-Pacific across several critical pillars that will condition Americas
Economic Framework (IPEF), the USs de facto foreign economic economic engagement in the Indo-Pacific amid competing
policy for Asia, has been lauded and welcomed. economic paradigms, notably the Chinese through the BRI and
Europe through digital policies and standards.
• Countering China: Besides Ukraine, the IPEFs importance also
About IPEF owes to Chinas patent economic footprint across Asia that
• S een as a means to counter China in the region, it is a U.S.-
could be checked by an alternative economic paradigm that
led framework for participating countries to solidify their
emphasises openness, flexibility, and integration.
relationships and engage in crucial economic and trade matters
in the region.
 e member nations include Australia, Brunei, India,
• Th Significance of IPEF
Indonesia, Japan, South Korea, Malaysia, New Zealand, the • B oost supply chain resilience: Globally, the IPEF signifies the
Philippines, Singapore, Thailand and Vietnam. first multilateral attempt to boost supply chain resilience to
• I t includes seven out of 10 members of the Association of ease global inflationary pressures and mitigate effects of future
South East Asian Nations (ASEAN), all four Quad countries, disruptions, particularly key raw materials, critical minerals,
and New Zealand. and semiconductors.
• T ogether, these countries account for 40 per cent of the • Four key pillars: Its a framework or a starting point to regulate
global GDP. trade and commerce across four key pillars: Digital economy,
• N ot a free trade agreement: The Indo-Pacific Economic supply chains, clean energy, and governance.
Framework is not a free trade agreement. • Negotiating high standard rules: The IPEF also represents an
• N o market access or tariff reductions have been outlined, effort to negotiate high-standard rules between like-minded
although experts say it can pave the way for future trade deals. countries to govern the digital economy, particularly data flows,
• Th
 e IPEF is also seen as a means by which the US is trying to climate mitigation, global tax, anti-money laundering and
regain credibility in the region after former President Donald anti-bribery provisions.
Trump pulled out of the Trans Pacific Partnership TPP.
• I PEF countries value its purpose and potential, particularly Challenges
given some doubts over whether the US administration could • I mpact on domestic companies : IPEF commitments and
sustain its focus in Asia as war broke out in Europe. standards that other signatories like India have to accede to,
will likely facilitate US MNCs access to Asian economies at the
expense of domestic preferences.

58 OP-ED | JUNE 2022


• I mpact on policy preference of countries: The IPEFs pillars • Tough policy choices, like the one on data and taxation, must
climate, digital, supply chains, and governance reforms could be made by Indian officials while negotiating the terms of the
clash with and supersede these countries policy preferences on IPEF accession.
such issues.
• F or instance, the US preference to allow free and open data Conclusion
flows under the digital economy pillar will constrict India’s Whats clear is that the IPEF represents both a mirage and
ability to regulate data for domestic purposes. aspiration. Collectively, it represents a leap into an unknown that
has to be negotiated amongst partners that share interests and
Way forward for India some values.
 e IPEF remains attractive for India given its flexibility
• Th
and open nature, allowing Delhi to demonstrate its political
commitment to the United States to jointly shape the
rules governing the Indo-Pacifics economic future even as
competitors lurk.

RUSSIAN INVASION OF UKRAINE: GLOBAL IMPLICATIONS

Lessons from the Ukraine crisis price shock


International Relations | GS2: Bilateral, Regional and Global Groupings and agreements involving India 
Note4Students | From UPSC perspective, the following things are important :
Prelims level : Not much
Mains level : Paper 2- Lessons from Ukraine crisis

Context • This will cause distortions and price spikes for those
The Russia-Ukraineconflict, now more than three months old, commodities in the global market, as can already be seen in the
will cause major, long-term shifts in the global energy and natural gas market, up 300 per cent in the last year.
commodity trade.
2] Sanctions are unlikely to achieve the desired
Factors responsible for high prices political outcome
• U kraine war: Western sanctions on Russia and efforts of • Th
 e US and its allies are quick to impose sanctions and these are
European nations to diversify their energy supplies are already rarely withdrawn, if ever.
causing market distortions and high prices. • Iran has been under US sanctions since 1979, and the same
• C rude oil prices are at their highest level since 2014; the price with Venezuela for over a decade.
of LNG is at its highest ever, fertiliser and food are up and • In both cases, sanctions have failed to achieve the desired
markets for several other commodities such as nickel have been political outcome.
disrupted. • As Russia is much better placed than either of those two
• E xpensive commodities are already causing distress in India’s countries to weather sanctions, the restrictions are likely to
neighbourhood, for example, in Sri Lanka and Pakistan. remain for a long while.
• I nsufficient investment : Insufficient investment in oil and
gas production in preceding years resulted in high prices, and 3] Emerging world unwilling to align with West
shortages were being felt.
• A number of European investors, such as Norways sovereign
on sanctions
• Th
 e high price of energy and the resulting inflation shows why
wealth fund, announced they would no longer invest in
much of the emerging world is unwilling and unable to align
traditional fuels oil, gas, coal.
with the West on the current sanctions.
• N atural gas is used as a feedstock for fertiliser.
• Russia is 11 per cent of the global landmass and among the
• A n energy shock is then inevitably followed by a food
worlds top five producers and exporters of oil, gas, fertiliser and
price shock.
other critical commodities like nickel.
• It is too big to be replaced as a supplier.
Future trends • In emerging economies, it can fan public anger and political
unrest, as was seen in Tunisia and other Arab countries
1] Strained EU-Russia relations will distort prices from 2010 on.
• I n the immediate term, the EU is trying to source its raw
materials most critically oil and natural gas, but also fertiliser,
agricultural goods and metals from non-Russian sources.

www.civilsdaily.com 59
4] Larger emerging economies will • Work on insulating the supply chains: For the long term,
disregard sanction it must work on insulating its supply chains from global
• L arger emerging economies such as China, India and Brazil political crises.
will disregard sanctions on their key economic interests,
particularly food, fertilisers and energy. Conclusion
• S pecifically for India, its dependence on these essentials is India needs to brace for the price shock emanating from the
unlikely to reduce meaningfully over the next 15-20 years. distortion caused by the shift in the energy policies of Europe.
At the same time, India needs to collaborate with other similar
Way forward for India economies to ensure that Russia doesnt get locked out of global
• C
 ollaborate with other economies: In the immediate future, commodity markets.
the India should collaborate with other similar economies
to ensure that Russia doesnt get locked out of global
commodity markets.

BRICS SUMMITS

China wants a larger BRICS to challenge


the existing international order
International Relations | GS2: Bilateral, Regional and Global Groupings and agreements involving India

Context • Russia and China have decided that this is an opportune time to
A virtual meeting ofBRICS+foreign ministers was held on May 20 expand BRICS and challenge the domain of the G7 by including
in which the ministers of Brazil, Russia, India, China, and South members from the G20.
Africa (BRICS) were joined by representatives from Argentina, • China is challenging Western influence over countries and
Egypt, Indonesia, Kazakhstan, Nigeria, the UAE, Saudi Arabia, wants to use BRICS to that end.
Senegal, and Thailand. • China is taking the lead and setting the agenda for BRICS
expansion.
• The New Development Bank associated with BRICS, expanded
About BRICS membership in 2021, admitting Bangladesh, the UAE,
• B RICS is an acronym for the grouping of the worlds leading
Uruguay and Egypt
emerging economies, namely Brazil, Russia, India, China and
• This shows the Chinese determination for an expansion process
South Africa.
on its watch.
 e BRICS Leaders Summit is convened annually.
• Th
• I t does not exist in form of organization, but it is an annual
summit between the supreme leaders of five nations. Criteria and the process of inducting new
• Th
 e grouping was formalized during the first meeting of BRIC members into BRICS and challenges
Foreign Ministers on the margins of the UNGA in New York in • P rioritise G20 members: The first likely criteria will be to
September 2006. prioritise G20 members.
 e first BRIC Summit took place in 2009 in the Russian
• Th • Among the recent guests of the BRICS+ virtual meeting,
Federation and focused on issues such as reform of the global Argentina, Indonesia and Saudi Arabia would qualify for
financial architecture. this category.
• S outh Africa was invited to join BRIC in December 2010, after • From among Mexico, Indonesia, Korea, Turkey and Australia
which the group adopted the acronym BRICS. (MIKTA), only Indonesia was invited.
• S outh Africa subsequently attended the Third BRICS Summit in • Thus, China, backed by Russia, is creating cleavages to choose
Sanya, China, in March 2011. its friends from among the G20 and beyond
 e Chairmanship of the forum is rotated annually among the
• Th • Emerging economy : Another criteria which could come up
members, in accordance with the acronym B-R-I-C-S. would be an emerging economy status and adherence to BRICS
objectives.
What are the factors leading to the • The push for setting criteria is actually a battle to choose
partners who are more amenable to the individual members of
expansion of BRICS? the current BRICs.
• U
 kraine war and hardened Western positions: The disruption
• Russia and China would prefer to have Indonesia, Kazakhstan,
in the international order, heightened by Russias invasion of
Saudi Arabia, UAE and Argentina excluding Egypt since it is a
Ukraine and the hardening of Western positions, are leading
close ally of the US.
to the making of competitive plurilateral fora.

60 OP-ED | JUNE 2022


• B razil would have a say on including Argentina the two • India needs to ensure that expansion is not on Chinese terms
countries have a longstanding rivalry in Latin America. and that the countries admitted are equally receptive to India.
• I f Argentina is excluded, it may unravel the G20 membership • Bilateral engagement with them should see this
criteria for inclusion in the BRICS. perception built up.
• S outh Africa has views on Nigeria and, particularly, Egypt. • Consultations on criteria and members must be strong.
Being a member of G20 gives it leadership in Africa. • Leverage ISBA: IBSA may act as a phalanx within BRICS
• B eing in the BRICS gave it heft as the African representative. to prevent China from running away with the expansion
• I f Nigeria and Egypt are admitted, South Africa would no more agenda over the views of other members.
be the African representative in the BRICS.
• N ew Development Bank membership: The UAE and Egypt Conclusion
could utilise their membership of NDB as a qualifier. Since Russia is simply with Chinese priorities, its time for the
 ere could be an easier consensus on Indonesia because India
• Th IBSA trilateral of democracies within BRICS to assert itself.
is unlikely to oppose it as its relationship has been improving
politically, even if not economically.
• O n Kazakhstan, the decision would be that of Russia and China Back2Basics: What is the fundamental difference
and how they deal with the other Central Asian countries. between ISBA, BRICS and BASIC?
• C hina may also back Iran and Malaysia but then Indonesia may • I BSA is between three democracies India, Brazil and South
feel a loss of uniqueness. Africa wanting to engage in deeper e conomic aspects and
• A consensus with Brazil and South Africa for members from discuss security related issues.
their regions will be critical. • BASIC includes Brazil, South Africa, India and China.
• These three expressions of multilateralism steer clear from
articulating the softer aspects of foreign policy like refugee
Way forward for India
rights or human rights invoking the sovereignty clause with
• M
 embership of the UAE and Saudi Arabia: The UAE and Saudi
domestic political sanctity paramount.
Arabia are two countries with whom India has rapidly enhanced
• BRICS comprises Brazil, Russia, India, China and South Africa.
its engagement and are good contributors to development.
• Russia is a democracy with its political spectrum anchoring
• H
 aving them in the BRICS could be of advantage to India.
around an individual.
• B
 oth countries have a longstanding relationship with the US,
• China is a socialist country, successful by implementing
but seek to diversify and would not be averse to joining BRICS.
economic reforms that do not agree with the basic tenets of
• A
 void BRICS expansion on Chinese terms: China, backed by
socialism/communism.
Russia, is hastening the process of expansion of BRICS as part
of its strategic challenge to the international order and to
collect middle powers around them.

FOREIGN POLICY WATCH: INDIA-IRAN

India-Iran Relations
International Relations | GS2: Bilateral, Regional and Global Groupings and agreements involving India 
Note4Students | From UPSC perspective, the following things are important :
Prelims level : INSTC
Mains level : Paper 2- India-Iran relations

Context • However, Irans joining of Baghdad pact in 1954 and the Cold
Irans Foreign Minister Hossein Amir-Abdollahians three-day visit War politics prevented both countries from having closer
to India, last week, was the first ministerial-level visit from Iran relations until the 1990s.
since Ebrahim Raisi assumed the Iranian presidency in August • Islamic Revolution of 1979, hostage of US diplomats, Iran-Iraq
last year. War and Tehrans support for Hezbollah and Hamas among
others resulted in a range of political and economic sanctions,
leading to Iran being isolated at a global level
Background • In the 1990s, both countries interests converged around
• B
 ilateral relations between India and Iran span millennia
energy, Central Asia and security, mostly around the Pakistan-
marked by meaningful interactions.
Afghan region.
 oth countries shared borders until 1947 and share several
• B
• This resulted in the signing of The Delhi Declaration, which
common features in their language, culture and traditions.
provided the vision of the countries defence and strategic
 e diplomatic links were established on 15th March 1950,
• Th
partnership and Tehran Declaration, which set forth the areas
when both countries signed a Treaty of Friendship and
of possible cooperation
Perpetual Peace.

www.civilsdaily.com 61
India-Iran relations: A shared vision for equitable, Irritants in Indo-Iran ties
pluralistic and co-operative international order • I ndia’s relations with Saudi Arabia, US and Israel: Growing
 e Tehran Declaration signed during former Prime Minister
• Th Saudi-India-US-Israel relations have irked Iran.
Atal Bihari Vajpayees visit to Iran affirmed the shared vision • In retaliation, Iran, for the first time, has linked the plight of
of the two countries for an equitable, pluralistic and co- Muslims in Gaza, Yemen, and Bahrain, with those in Kashmir
operative international order. • Iran-Pak-China ties: Warming Iran-Pak-China ties have
• I t recognised then Iranian President Mohammad Khatamis annoyed India.
vision of a dialogue among civilisations as a paradigm of • Sluggish Chabahar port development: Slow Chabahar port
international relations based on principles of tolerance, development has annoyed Iran.
pluralism and respect for diversity. • China-Iran strategic partnership:
• A dvancing the standing in global order: Two decades later, • An economic and security partnership deal between Iran
as India strengthens new partnerships within its regional and China was recently made public, creating a global alarm,
vision centred on the Indo-Pacific, both countries remain driven especially for India and the US.
by the goals of advancing their standing at the regional and • The foundation for this deal was laid during Chinese President
global level. Xi Jinpings visit to Iran in 2016
• B oth are keen to project themselves as independent strategic • The draft agreement involves Chinese investments worth $400
actors determined to play a role in shaping a new multipolar billion into the Iranian economy over 25 years.
order in their shared Eurasian neighbourhood and also at the • Of this, $280 billion will be allocated for the oil and gas sector
global level. and the remaining funding will be for other core sectors like
banking, telecommunications, ports and railways.
• In return, China would get a steady supply of Iranian oil at a
Why does India need Iran? heavily discounted rate during the same period.
• E nergy security: Conventionally, for energy security
• This deal creates a win-win situation for both countries.
• I ran is amongst India’s top oil suppliers
• It lifts Irans sanction-hit economy and helps China set a firm
• S trategic importance: Since the 1990s, Irans importance has
foothold in the Middle East.
become strategic
• S ecurity reasons: Irans cooperation is critical for India’s
security given that US sanctions:
• P ak supports terrorism in India • I rans aim to develop nuclear weapons has come under strong
• I nfluence in Afghanistan: India’s influence in Afghanistan criticism from Trump Administration since the beginning.
is marginal. • Thus, the US has withdrawn from the Iran nuclear deal in
• C ountering Pakistan: India needs Iran to moderate Paks 2018 after it was signed in 2015 and imposed unilateral
influence in West Asia sanctions on Iran.
• I ran is a leader in the Muslim world. • The US sanctions and aggressive policies have created a
• A ccess to Afghanistan and Central Asia situation of economic and geostrategic uncertainty.
• Indian investors are wary of having businesses in Iran for the
fear of the US.
Significance of Iran for India • Also, India deviated from the policy of not abiding by unilateral
• G eopolitical logic in relations: The sanctions imposed by the
sanctions by ceasing to purchase Iranian oil.
US on Iran after it withdrew from the nuclear deal in 2018
• Due to this, Iran did not back India’s bid to mobilise
may have virtually destroyed India-Iran trade, especially
international support against Beijings aggression in
India’s energy imports from Iran, but the geopolitical
the Ladakh.
logic underpinning relations between the two countries
remains firm.
• L and bridge to Central Asia and Eurasia: Iran has sought to Other issues:
leverage its crossroad geographical location straddling the • I ran is against India’s decision to abrogate Article 370 and 35A.
Persian Gulf and the Caspian Sea, India has come to see it as its • It has called on India and Pakistan to show restraint and
land bridge to Central Asia and Eurasia. prevent the killing of innocent Kashmiris, revealing possible
• I NSTC: Despite the difficulties posed by decades of American close ties between Pakistan and Iran.
sanctions, Iran has, along with India, Russia and a few • Iran also voiced against extremist Hindus and their parties
other countries in the Eurasian region, continued to work during the 2020 Delhi riots.
on the multi-modal International North-South Transport • Apart from these issues, Iran also sidelined India’s ONGC from
Corridor (INSTC). exploration rights at its Farzad B Gas field, stating that it will
• D uring Raisis visit to Moscow, the two sides had pledged engage the company at a later date.
to redouble their efforts to build the railway line between
Irans Caspian port of Rasht and Astara on the Iran- Way forward
Azerbaijan border. • A s India is treading a fine line in balancing relations with the
• A lternative Caspian Sea Route: The activation of an alternative US, China and Iran while striving to augment its political
Caspian Sea route speaks volumes about the positive outlook influence in West Asia, embracing one country over the other is
of Iran, India and Russia on this corridor despite a variety of not an option for India.
geopolitical challenges. • Therefore, a multilateral foreign policy is a way forward.
• I rans Chabahar port, where India is developing two berths • India must retain its involvement in the Chabahar port
that it will lease for commercial operations for 10 years, is also a development because of the geostrategic significance.
story of perseverance in the ties between the two countries. • In the immediate term, India should improve its multi-
alignment credentials to absorb investments into the port
projects from the public and private sector, boost maritime

62 OP-ED | JUNE 2022


cooperation among littoral countries to enhance the transit of • A lso, India needs to evolve a better strategy on Iran beyond
goods, and foster regional partnership for the Chabahar port waiting to see how the US may react, beyond having to issue
development. a clarification in response to Irans sudden provocations and
• B ased on the mutual geostrategic and energy interests, beyond allowing voids of partnerships that China may fill.
India could collaborate with Japan under the Asia-Africa • In order to do so, India must create a new alliance of countries
Growth Corridor. having similar geostrategic interests, which are also facing
• J apans participation would enhance the multilateral issues with US unrealistic and aggressive foreign policy strategy
characteristics of the transit hub in the region, unlike and Chinas expansionistic policies.
the China-owned Gwadar port. This will further enhance
multilateral investments to solidify regional economic Conclusion
partnerships that enable the sustainability of the port. While the revival of the nuclear deal could give a fillip to India’s
economic ties with Iran, India’s interests in continental Asia will
be served well by heeding to the calls for developing a long-term
roadmap for bilateral relations.

FOREIGN POLICY WATCH: INDIA-SRI LANKA

In Sri Lankan crisis, a window of economic opportunity


International Relations | GS2: Bilateral, Regional and Global Groupings and agreements involving India 
Note4Students | From UPSC perspective, the following things are important :
Prelims level : Not much
Mains level : Paper 2- India-Sri Lanka relations and challenges

Context • In 2016 he highlighted the fact that the five Indian southern
The commonality between Sri Lanka and the southern parts of States, with a total population of 250 million, had a combined
India remains a less-emphasised yet significant aspect of India- gross state domestic product of nearly $450 billion; with the
Sri Lanka relations. addition of Sri Lankas $80 billion GDP, the sub-region would
have a $500 billion economy, having an aggregate population
of around 270 million.
Crisis in Sri Lanka and relief provided by India
 e present economic crisis in Sri Lanka has pushed it closer
• Th
to India for immediate relief. Challenges
• I ndia, as part of its Neighbourhood First policy, has extended • P ossibility of greater economic collaboration: Whether this
support to the people of Sri Lanka in the form of aid (close to bonhomie can lead to greater economic collaboration between
$3.5 billion) to help secure Sri Lankas food, health and energy Sri Lanka and south India, not necessarily Tamil Nadu alone,
security by supplying it essential items such as food, medicines, given the historical baggage, is anybodys guess.
fuel and kerosene. • Baggage of history: Some sections of the Sinhalese still hold
• Th
 e latest in the series was the signing of an agreement on June the view that India had been a threat to Sri Lanka and it can
10 between the Government of Sri Lanka and the Export- still be a threat to them.
Import Bank of India for a $55-million short term Line of • The manner in which the Rajapaksa regime unilaterally
Credit to facilitate the procurement of urea for paddy crop in scrapped in February 2021 a tripartite agreement signed
the ongoing Yala season. in 2019 with India and Japan for the development of
• O n its part, Tamil Nadu decided to provide aid of 123 crore, Colombos East Container Terminal was a reflection of the
comprising 40,000 tonnes of rice, 137 types of life-saving drugs historical baggage.
and 500 tonnes of milk powder. • This perception can be traced to history when Sri Lanka
was invaded by rulers of south India who humbled the
Sinhala kings.
Sri Lanka-India sub-regional context • In the aftermath of the 1983 anti-Tamil pogrom, the support
• D uring his second term as Prime Minister, Mr. Wickremesinghe
provided by the Indian government to Tamil rebels only
while delivering a lecture in Chennai, in August 2003, called for
strengthened this perception.
the development of the south India-Sri Lanka sub-region as a
• Modest investment in Sri Lanka’s development: Despite
single market.
India’s open willingness to take part in the development of
• S uch a market would provide more opportunities for the
Sri Lanka after the civil war, the scale of its involvement has
economic growth of both countries.
been modest.

www.civilsdaily.com 63
• I ncomplete projects due to lack of political will: After the • Cross-border energy trade: The economic crisis has revived
cancellation of the tripartite agreement, India was later talk of linking Sri Lankas electricity grid with that of India.
provided with projects such as the West Container Terminal, • If this project takes off, the first point of interconnectivity on
the Trincomalee oil tank farm and a couple of renewable the Indian side will most likely be in Tamil Nadu.
projects, there were several proposals that envisaged India’s • India has cross-border energy trade with Bangladesh, Nepal,
participation but did not see the light of day. Bhutan and Myanmar.
• A nother project, a collaboration between NTPC Limited and the • Facilitating people-to-people interaction: The apprehension
Ceylon Electricity Board, was cancelled. in the minds of sections of the Sinhalese majority about India
• O ther projects too such as the development of the being a threat can be dispelled only by facilitating greater
Kankesanthurai harbour and the expansion of the Palaly people-to-people interaction, including pilgrimages by monks
airport in Jaffna, both envisaging Indian participation, would and other sections of Sri Lankan society to places of Buddhist
have become a reality had there been show of political will from importance not only in north India but also in the south
the other side. (Andhra Pradesh).
• Th
 e project of building a sea bridge and tunnel, connecting
Rameshwaram to Talaimannar, remains on paper. Conclusion
Much more will have to be done but the opportunity created
Way forward by the current circumstances should be utilised to bring Indian
• I nfrastructure development: Even now, there is enormous and Sri Lankan societies closer a prerequisite to achieving
scope for collaboration between the two countries in the area of an economic union between Sri Lanka and the southern
infrastructure development. States of India.

FOREIGN POLICY WATCH: INDIA-AUSTRALIA

India and Australia


International Relations | GS2: Bilateral, Regional and Global Groupings and agreements involving India 
Note4Students | From UPSC perspective, the following things are important :
Prelims level : Exercise Talisman Sabre
Mains level : Paper 2- India-Australia relations

Context • All trade, to and fro from the penal colony of New South
India and Australia, which share common values and interests, Wales was controlled by the British East India Company
must work together with resolve to shape the economic and through Kolkata.
strategic environment so that it continues to support collective • India and Australia established diplomatic relations in the pre-
security and prosperity. Independence period, with the establishment of India Trade
Office in Sydney in 1941.
• The end of the Cold War and simultaneously, India’s decision
India-Australia Relations: A Backgrounder to launch major economic reforms in 1991 provided the first
• Th
 e India-Australia bilateral relationship has undergone
positive move towards development of bilateral ties.
evolution in recent years, developing along a positive track, into
a friendly partnership.
• Th
 e two nations have much in common, underpinned by Various dimensions of ties
shared values of a pluralistic, Westminster-style democracies,
Commonwealth traditions, expanding economic [A] Political partnership
engagement etc. • B oth the countries are members of G-20, ASEAN Regional
• S everal commonalities include strong, vibrant, secular and Forum (ARF), IORA (Indian Ocean Rim Association), Asia
multicultural democracies, free press, independent judicial Pacific Partnership on Climate and Clean Development, East
system and English language. Asia Summit and the Commonwealth.
• Australia has been extremely supportive of India’s quest
Historical Perspective for membership of the APEC (Asia Pacific Economic
• Th
 e historical ties between India and Australia started Cooperation).
immediately following European settlement in Australia • Australia whole-heartedly welcomed India’s joining of the
from 1788. MTCR (Missile Technology Control Regime).

64 OP-ED | JUNE 2022


[B] Trade and Economy • Alliance with US: The two countries also have increasingly
• I ndia is the 5th largest trade partner of Australia with trade common military platforms as India’s defence purchases from
in goods and services. the US continue to grow.
• T wo-way trade between India and Australia was worth A$24.3 • Affinity with ASEAN: Australia has deep economic, political
billion ($18.3 billion ) in 2020, up from just $13.6 billion in and security connections with the ASEAN and a strategic
2007, according to the Australian government. partnership with one of the leading non-aligned nations,
• A fter a series of attempts, in 2016, Australia opened the door Indonesia.
for uranium exports to India. • Containing China: The Indo-Pacific region has the potential
• A n Australia-India Strategic Research Fund (AISRF) which to facilitate connectivity and trade between India and
was established in 2006, supports collaboration between Australia. Both nations can leverage their equation in QUAD to
scientists in India and Australia on cutting-edge research. contain China.

[C] Cultural ties International cooperation


 ere is a longstanding people-to-people ties, ever increasing
• Th • S upport at UNSC: Australia supports India’s candidature in an
Indian students coming to Australia for higher education. expanded UN Security Council.
• G rowing tourism and sporting links, especially Cricket and • APEC: Australia is an important player in APEC and supports
Hockey, have played a significant role in further strengthening India’s membership of the organisation. In 2008, Australia
bilateral relations between the two countries. became an Observer in SAARC.
• I ndia is one of the top sources of skilled immigrants to
Australia. Some irritants in ties
• Th
 e number of Indian students continue to grow with • T rade imbalance: India’s trade deficit with Australia has been
approximately 105,000 students presently studying in increasing since 2001-02 due to India-Australia Free Trade
Australian universities. Agreement. It is also a contentious issue in the ongoing RCEP
• A fter England, India is the second largest migrant group in negotiations which India left.
Australia in 2020. • High tariff on agri products in India: India has a high tariff
for agriculture and dairy products which makes it difficult for
[D] Strategic Partnership Australian exporters to export these items to India.
• I n 2009, India and Australia established a Strategic Partnership, • Non-tariff barriers in Australia: At the same time, India
including a Joint Declaration on Security Cooperation facesnon-tariff barriers and its skilled professionals in the
which has been further elevated to Comprehensive Strategic Australian labour market face discrimination.
Partnership in 2020. • Visa Policy: India wants greater free movement and relaxed
 e Mutual Logistics Support Agreement has been signed
• Th visa norms for its IT professionals, on which Australia is
during the summit that should enhance defence cooperation reluctant.
and ease the conduct of large-scale joint military exercises. • Future of QUAD: Australian lobby has sparked speculation over
 ere is a technical Agreement on White Shipping
• Th the fate of the Quadrilateral Consultative Dialogue (the Quad)
Information Exchange. involving India, Australia, Japan and the United States.
• B oth nations conduct bilateral maritime exercise AUSINDEX. • Nuclear reluctance: Building consensus on non-nuclear
In 2018, Indian Air Force participated for the first time in the proliferation and disarmament has been a major hurdle given
Exercise Pitch Black in Australia. India’s status as a nuclear power.
• F oreign and Defence Ministers of both countries agreed to meet • R acism against Indians: Increasing Racist attacks on Indians
in a 2+2 format biennially. in Australia has been a major issue.
 e first-ever Quad Leaders Virtual Summit held on 12 March
• Th
2021 saw the participation of Prime Ministers of India, Way forward
Australia, Japan and President of USA. • U pgradation of 2+2 format: It is prudent too for New Delhi
• A Civil Nuclear Cooperation Agreement between the two and Canberra to elevate the two plus two format for talks
countries was signed in September 2014 during the visit of from the Secretary level to the level of Foreign and Defence
then PM Tony Abbott to India. Ministers.
• Removal of trade barriers: Both nations need to resolve
Significance of the ties disputes at the WTO with regard to the Australian sector can
• C
 OVID Management: Australia is one of the few countries that act as a serious impediment.
has managed to combat COVID-19 so far through controlled • Balancing China: An engage and balance China strategy is the
adaptation by which the coronavirus has been suppressed to best alternative to the dead end of containment.
very low levels.
• S
 TEM: From farming practices through food processing, supply Conclusion
and distribution to consumers, the Australian agribusiness • G iven the changing geopolitics, both Canberra and New Delhi
sector has the desired R&D capacity, experience and technical are keen to move beyond mere rhetoric and build a robust
knowledge. partnership
• N
 atural resources: Australia is rich in natural resources • The key is to keep the Australia story thriving in India, and
that India’s growing economy needs. It also has huge India story thriving in Australia on a consistent basis in
reservoirs of strength in higher education, scientific and public memory.
technological research. • This involves a holistic multi-stakeholder strategy and approach
which deepens understanding and appreciation of each other.

www.civilsdaily.com 65
BRICS SUMMITS

BRICS
International Relations | GS2: Bilateral, Regional and Global Groupings and agreements involving India 
Note4Students | From UPSC perspective, the following things are important :
Prelims level : Contingency Reserve Arrangement (CRA)
Mains level : Paper 2- The Ukraine conflict and BRICS

Who are the members?


• S outh Africa was invited to join BRIC in December 2010, after
which the group adopted the acronym BRICS. South Africa
subsequently attended the Third BRICS Summit in Sanya,
China, in March 2011.
• The Chairmanship of the forum is rotated annually among the
members, in accordance with the acronym B-R-I-C-S.
• The importance of BRICS is self-evident : It represents 42% of
the worlds population, 30% of the land area, 24% of global
GDP and 16% of international trade.
• The five BRICS countries are also members of G-20.

Significant feats of BRICS

1. Johannesburg Declaration, 2018


• Th
 e 2018 summit saw the BRICS leaders come together and
discuss various international and regional issues of common
Context concern and adopted the Johannesburg Declaration by
China is hosting the 14th BRICS summit in virtual mode. The consensus.
focus of the summit will be centred on the conflict and the • The leaders jointly reaffirmed their commitment to the
associations future.The grouping is successful in moving towards principles of mutual respect, sovereign equality, democracy,
the desire objectives for which it has come into existence. But inclusiveness and strengthened collaboration.
currently, there are many challenges engulfing it. This is high • The BRICS leaders have used the summit to reject the growing
time that it should look forward to resolving them and progress unilateralism and instead reiterate their commitment to the
towards its desired objectives. strengthening of multilateral institutions, calling for stronger
intra-trade within member states.
What is BRICS?
 RICS is an acronym for the grouping of the worlds leading
• B 2. Focus on New Industrial Revolution
emerging economies, namely Brazil, Russia, India, China and • Th
 e other big idea emanating from the summit is to help
South Africa. nations to prepare for the Fourth Industrial Revolution.
 e BRICS Leaders Summit is convened annually. It does not
• Th • Participants embraced it, articulating the need for a new
exist in form of organization, but it is an annual summit strategy on employment, education and skill development as
between the supreme leaders of five nations. the digital revolution unfolds.
• The leaders commended the establishment of the BRICS
Partnership on New Industrial Revolution (PartNIR).
Inception
• It aims to deepen BRICS cooperation in digitalization,
 n November 30, 2001, Jim ONeill, a British economist who
• O
industrialization, innovation, inclusiveness and investment
was then chairman of Goldman Sachs Asset Management,
and to maximize the opportunities and address the challenges
coined the term BRIC to describe the four emerging economies
arising from the 4th Industrial Revolution.
of Brazil, Russia, India, and China.
• H
 e made a case for BRIC on the basis of econometric analyses
projecting that the four economies would individually and 3. BRICS Plus
collectively occupy far greater economic space and become
among the worlds largest economies in the next 50 years or so.

How it has formed?


• Th
 e grouping was formalized during the first meeting of BRIC
Foreign Ministers on the margins of the UNGA in New York in
September 2006.
 e first BRIC Summit took place in 2009 in the Russian
• Th
Federation and focused on issues such as reform of the global
financial architecture.

66 OP-ED | JUNE 2022


• Th
 e BRICS outreach to Africa began at the last summit hosted • Also, the cumulative economy of the group members aggregate
by South Africa, in 2013. It has picked up momentum now but to around 17 trillion in nominal term which is 22% of world
African leaders want more. economy in current context.
 ey need big loans from the New Development Bank (NDB)
• Th • The relevance of the group increases when it is considered
for their infrastructure projects. as rival of western dominated institutions of World
• C hina introduced the BRICS Plus format at the Xiamen Bank and IMF.
summit last year by inviting a few countries from
different regions. 2.Future power centers of the world
• S outh Africa emulated it, arranging the attendance of top-level • I ndia and China are today the fastest growing economies and
representation of five nations of its choice: Argentina, Jamaica, they are considered as future super power of world.
Turkey, Indonesia and Egypt. • The group also has Russia the former USSR as a member
• Th
 e precise role of BRICS Plus countries will take time to evolve which was one of the two super power until 1991 when it was
but an immediate benefit is the immense opportunities it disintegrated for various political and economic reason but still
provides for networking among leaders. retain the hegemony of western, US led military dominance.

4. Brasilia outcome 3.A step towards a more democratic world order


• D
 uring Brazils chairmanship, the grouping reported 30 new • I n subsequent summits since its inception the group has
outcomes, initiatives and documents. taken various initiatives which have changed the world
• Th
 e latest summit needed a 73 para-long Brasilia Declaration economic order.
to spell out the leaders shared worldview and spectrum of • The group pledged a corpus of $75 billion to IMF on
their work. precondition of voting rights reform in June, 2012 which is
• M
 uch to India’s satisfaction, the commitment of BRICS to not only the end of US hegemony in institution but also a start
counterterrorism seems to be getting strengthened. of more democratic world order.

5. New Development Bank (NDB) projects 4.New Development Bank


 e NDB, the groupings flagship achievement, has 44 projects
• Th
with its lending touching $12.4 billion, in just five years.
 is is not a small gain, but the bank needs to grow as a global
• Th
development finance institution. A move is now afoot to open
its membership selectively.
 DB has opened its regional centers in South Africa and Brazil
• N
and will do so in Russia and India in 2020.

6. Local Currency Bond Fund


• W
 ith a successful Contingent Reserve Arrangement in the
bag, BRICS governments are set to establish a Local Currency
Bond Fund.

7. Business promotion
• Th
 e BRICS Business Council held a substantive dialogue
to foster cooperation in areas ranging from infrastructure
and energy to financial services, regional aviation and
digital economy.
• I ts cooperation with the NDB is being encouraged. The national
trade promotion agencies signed an MoU on cooperation
among themselves.
• A BRICS Women Business Alliance was also created, both
as a women empowerment measure and as a tool to bring a • D uring its fifth summit at Durban, South Africa in 2013,
distinctive perspective on issues of interest for the business the member countries agreed to create a new global financial
community. institution which finally came into existence as New
Development Bank in 2015.
How relevant is the BRICS in todays world? • It has a head quarter at Shanghai with initial capital of $50
billion and subsequently increased to $100 billion.
• The bank is today considered as rival of World Bank and
1.New front against western dominance
the banks primary focus is to lend for various development
 e BRICS is group of countries having total population
• Th
projects in member and other developing countries.
of approximately 3.6 billion which makes 40% of world
population.

www.civilsdaily.com 67
5.Contingent Reserve Agreement Issues in its consolidation
• C ommon ground for the members was built by ensuring
that no bilateral issues were brought up, but the
contradictions remained.
• Many economists soon grew tired of emerging economies that
didnt reach the goals they had predicted.
• Others saw India’s closer ties with the US after the civil nuclear
deal as a sign its bonds with BRICS would weaken.
• Meanwhile, Russia, which had hoped to bolster its own global
influence through the group, had been cast out of the G-7 order
altogether after its actions in Crimea in 2014.
• China, under Xi Jinping, grew increasingly aggressive, and
impatient about the other underperforming economies in
the group, as it became the U.S.s main challenger on the
global stage.

Long-term prospects

• T
 o save members from immediate economic shocks the group
has also agreed to Contingent Reserve Agreement.
 e agreement provide protection to member countries
• Th
against global liquidity pressure as all the members are
developing economies and prone to increased economical
volatility in current globalized scenario and is considered as
rival of International Monetary Fund.

6.A bridge between North and South


• Th
 e grouping has gone through a reasonably productive
journey. It strove to serve as a bridge between the Global North
and Global South.
• C hinas decision to launch the trillion-dollar Belt and Road
7.Assuring global peace and security Initiative in 2017 was opposed by India, and even Russia
 e US unilateral withdrawal from Intermediate-Range
• Th did not join the BRI plan, although it has considerable
Nuclear Forces (INF) Treaty and Iran deal has posed a great infrastructure projects with China.
security threat to global peace. • South Africas debt-laden economy and the negative current
• B
 RICS, being a pillar of fairer polycentric world order, can play a account have led some to predict an economic collapse in the
significant role in assuring world peace by playing an active role next decade.
in dispute resolution based on principle of fairness. • Brazils poor handling during the Covid-19 crisis has ranked it
amongst the worlds worst-affected countries, and its recovery is
expected to be delayed.
8.Sustainable and inclusive growth and • India’s economic slowdown was a concern even before Covid-19
development hit, and government policies like Aatmanirbhar were seen as a
• S tructural imbalances caused by the global financial crisis of plan to turn inward.
2008 and new threats to the global economy posed by trade war
and unilateral economic sanctions are yet to be resolved.
Issues with BRICS nations
• Th
 e growing contribution of the BRICS to the world economy
• C oncerns about aggressions from Russia in Ukraine and
and the rising importance of the economic relations between
Eastern Europe and China in the South China Sea, the border
the BRICS and other Emerging Market and Developing
with India and internally in Hongkong and Xinjiang are
Countries (EMDCs) create an opportunity for new initiatives.
clear visible.
 is would better help to support sustainable and inclusive
• Th
• There is creeping authoritarianism in democracies like Brazil
growth and development.
and India have made investors question long-term prospects of
the group.
9.Poverty Reduction • In the market, BRICS has been mocked for being broken, while
• Th
 e BRICS contribution to world poverty reduction has others have suggested it should be expanded to include more
been sizeable. emerging economies like Indonesia, Mexico and Turkey, called
• C
 ontinued BRICS growth remains important for poverty the Next-11.
reduction as well as for reducing international inequalities.

68 OP-ED | JUNE 2022


Importance of BRICS for India

1.Geo-Politics
• G
 lobal geopolitics today represents the case of a tug of war and
India finds itself in the middle of it.
• Th
 is has made difficult for India to carve a middle path for
balancing its strategic interests between the U.S and the Russia-
China axis.
• Th
 erefore, BRICS platform provides an opportunity for India to
balance Russia-China axis.

2.Global Economic Order


• B
 RICS countries shared a common objective of reforming the
international financial and monetary system, with a strong
desire to build a more just, and balanced international order.
• T
 o this end, BRICS community plays an important role in
the G20, in shaping global economic policies and promoting
financial stability.

• The goal should be to avoid a negative scenario of unfolding


3.Voice of Developing Nations globalization and to start a complicated merging of the global
• A s the western countries are raising challenges on issues growing economies without distorting or breaking the single
ranging from World Trade Organization to climate change, financial and economic continuum of the world.
the developing countries are crippling under the onslaught of
these policies.
• I n recent period, BRICS has emerged as the voice of developing 4.Not Been Effective
countries, or the global south and playing a significant role in • Th
 e five-power combine has succeeded, albeit up to a point.
protecting the rights of developing countries. • However, Chinas economic rise has created a serious imbalance
within BRICS.
• Also the group has not done enough to assist the Global South
4.Terrorism to win their optimal support for their agenda.
• B
 RICS also provides a platform for India to galvanize its efforts
against terrorism and has worked within the grouping to take
a strong stand against terrorism and bring about focused 5.Contentious issues between India and China
consultations on specific aspects relating to terrorism. • H owever, the future of the group seems little gloomy as the
two biggest economy India and China of the group are having
various contentious issues between them.
5.Global Grouping • The two countries are often seen as rival on various global
• I ndia is actively pursuing its membership for United Nation forums which degenerate the confidence between each other.
Security Council (UNSC) and Nuclear Supplier Group (NSG). • China is opposed to the entry of India to group like NSG and
• C hina forms the major roadblock in pursuing such goals. also a staunch supporter of Pakistan which has a demeaning
• Th
 erefore, BRICS provides an opportunity to actively engage record fuelling terrorism in India.
with China and resolve the mutual disputes. It also helps in • China has also opposed to UN resolution of declaring Masood
garnering support of other partner countries. Azhar a global terrorist who is a mastermind of various
terrorist attack in India and globally.
What are the challenges with the BRICS? • At the same time India is also opposed to the Chinas aggressive
policy in South China Sea where various countries like
1.Heterogeneity Vietnam, China, Philippines and others in the reason have
• I t is claimed by critics that heterogeneity (variable/diverse territorial disputes.
nature of countries) of the BRICS nations with its diverse
interests possess a threat to the viability of the grouping. 6.Sanctions on Russia
• I n recent times the global slowdown, sanction on Russia since it
2.China Centric nature of the group annexed Crimea and political instability in Brazil has also added
• A
 ll the countries in BRICS grouping trade with China more than burden on BRICS economy.
each other, therefore it is blamed that as a platform to promote
Chinas interest. Priorities/Immediate goals of BRICS
• B
 alancing trade deficit with China is huge challenge for other
partner nations. 1. Reform of multilateral institutions
 e first is to pursue reform of multilateral institutions ranging
• Th
3.Global Model for Governance from the United Nations, World Bank and the International
• A
 midst, global slowdown, trade war and protectionism, the Monetary Fund to the World Trade Organization and now
critical challenge for the BRICS consists in the development of even the World Health Organization.
a new global model of governance which should not be unipolar • This is not a new goal. BRICS has had very little success so far,
but inclusive and constructive. although strengthening multilateralism serves as a strong bond
as well as a beacon.

www.civilsdaily.com 69
• R
 eform needs global consensus which is hardly feasible in the Way Forward
current climate of strategic contestation between the U.S. and • A close examination of India’s record in BRICS reveals that
China and the devastation caused by COVID-19 to health, lives New Delhi has used its membership to make a substantial
and livelihoods. contribution to the global financial architecture, while also
• B
 RICS emerged from the desire to challenge dominance (by the making efforts to address glaring gaps in areas such as counter-
U.S.) in the early years of the century. The counter-dominance terrorism, the fight against climate change and UNSC reform.
instinct and principled commitment to multipolarity in all • India is not a free-rider in a system of global governance
forms is written into the DNA of BRICS. dominated by the West, and continues to provide a vision of
global governance.
2. Resolve to combat terrorism • The BRICS needs to expand its agenda for increasing its
• T errorism is an international phenomenon affecting Europe, relevance in the global order. As of now, climate change and
Africa, Asia and other parts of the world. Tragic developments development finance, aimed at building infrastructure must
concerning Afghanistan have helped to focus attention sharply dominate its agenda.
on this overarching theme, stressing the need to bridge the gap • For BRICS to remain relevant over the next decade, each of its
between rhetoric and action. members must make a realistic assessment of the initiatives
• C hina, for example, feels little hesitation in supporting opportunities and inherent limitations.
clear-cut denunciations of terrorist groups, even as its • BRICS should promote comprehensive development of all
backing of Pakistan, which is heavily enmeshed with a host of states both big and small and enhanced mutually beneficial
international terrorist groups, remains steadfast. cooperation among them on the basis of shared interests.
• I n this context, BRICS is attempting to pragmatically shape • Democratization of international issues i.e agreements on
its counter-terrorism strategy by crafting the BRICS Counter global agendas should be reached with the widest and equal
Terrorism Action Plan containing specific measures to fight participation of all stakeholders and be based on universally
radicalization, terrorist financing and misuse of the Internet by recognized legal norms.
terrorist groups. • The principle of respect for cultural and civilization diversity of
• Th
 is plan is expected to be a key deliverable at the forthcoming the world should be a top priority.
summit and may hopefully bring some change. • BRICS nations should strive for peaceful and politico-
diplomatic settlement of crisis and conflict in various regions of
the world.
3. Promoting technological and digital solutions
for the Sustainable Development Goals
Conclusion
• D
 igital tools have helped a world adversely hit by the pandemic,
BRICS, being one of the pillars of the emerging fairer polycentric
and India has been in the forefront of using new technological
world order, plays an important stabilizing role in global affairs.
tools to improve governance.
In the storming ocean of world politics, BRICS can contribute
significantly in maintaining international stability and ensuring
4. Expanding people-to-people cooperation global economic growth, and becoming a united center of the
• H
 owever, enhancing people-to-people cooperation will have multipolar world.
to wait for international travel to revive. Interactions through
digital means are a poor substitute.

RUSSIAN INVASION OF UKRAINE: GLOBAL IMPLICATIONS

Caution in buying Russian cruide


International Relations | : Effect Of Policies & Politics Of World On India’S Interests 
Note4Students | From UPSC perspective, the following things are important :
Prelims level : Not much
Mains level : Paper 2- Purchasing Russian oil

Context • In response to the invasion, Western countries, including the


This week theWall Street Journaland theNew York Timesboth United States and Europe, have imposed an array of sanctions
reported on India emerging as a major buyer of Russian oil. against Russia.
• Reduced purchases from Russia: Europe and the United States
have seen the price of oil steadily rise after they reduced their
Background of rising fuel prices due to purchases from Russia.
Ukraine crisis
 significant fallout of Russias invasion ofUkraine has been
• A
the rising cost of petroleum.

70 OP-ED | JUNE 2022


• F
 or now, Russia has been able to mitigate the impact of • European companies own most of the ships carrying Russian
sanctions by selling crude, oil and coal at reasonable prices in oil to India.
greater volumes to newer bulk buyers like India, to combat • These insurance sanctions will impact the companies that own
Europe trying to wean itself off Russian crude. these ships as well.
• Dependence for batteries: Apart from geopolitical changes in
Why India increased purchase of Russian oil the world indicating the rise of China, there is a major change:
• I ndia has chosen a different route. Electric vehicles and electric batteries substituting for non-
• C ope with rising fuel prices: We are the third-largest importer renewable resources like petroleum and diesel.
and consumer of oil in the world and have increased our • India cannot afford to be dependent on an unhindered
purchase of Russian oil to cope with rising oil prices elsewhere. supply of electric batteries from China, given geopolitical
• W e are also refining crude oil or turning it into products like jet considerations and border disputes between the two nations.
fuel and diesel and selling it to Europe and other nations.
• C urb inflation: Importing Russian crude also helps us Way forward
curbinflation that has been made worse by rising fuel prices. • T o weather the new electric era that will no doubt be dotted
• H alting the fall of the rupee: Procuring discounted Russian oil with territorial wars and national security concerns, India
is an effort by the government to bring down prices and halt would do well to preempt shortages in the arena by putting in
the decline in the value of the Indian rupee. place factories which will build the electric batteries that will
• I ndia’s behaviour is governed by our best interest, which power our futures.
is the most important element of any astute foreign and • What the invasion of Ukraine has taught us is that we need to
economic policy. be more self-reliant and have in-house energy sources.

Issues with purchasing oil from Russia Conclusion


• Th
 e European Union has announced a ban against insuring India needs to factor in the implications of comprehensive
ships carrying Russian oil, to commence this December. western sanctions as it increases its purchase of discounted
• I nsurance ban: Countries like India, China and Turkey that are Russian oil.
increasing their oil purchases from Russia have six months to
find a work-around to the insurance ban by using non-European
insurance companies.

HOW HANOI AND NEW DELHI ARE FORTIFYING DEFENCE TIES

How Hanoi and New Delhi are fortifying defence ties


International Relations | GS2: Bilateral, Regional and Global Groupings and agreements involving India 
Note4Students | From UPSC perspective, the following things are important :
Prelims level : UNCLOS
Mains level : Paper 2- India-Vietnam defence ties

Context • Mutual logistic support: The two sides also signed


The two countries recently deepened bilateral cooperation with a Memorandum of Understanding (MoU) on mutual
the signing of the Joint Vision Statement on India-Vietnam logistics support.
Defence Partnership towards 2030 during the recent visit of • Elevating CSP: This is the first agreement of its kind that
Defence Minister Rajnath Singh to Vietnam. Hanoi has entered into with any other country and elevates
the standing of Comprehensive Strategic Partnership (CSP)
which Hanoi shares with New Delhi since 2016 (along with only
About the Joint Vision Statement Russia and China).
• I ndia and Vietnam Wednesday signed a Joint Vision Statement
on India-Vietnam Defence Partnership towards 2030, which
will significantly enhance the scope and scale of existing Enhanced maritime cooperation
defence cooperation. • B oth countries find convergence in their approaches towards
• B oosting the scale and scope of defence cooperation: The the maintenance of stability and security of the Indo-Pacific.
Joint Vision Statement is aimed at boosting the scope and scale • This approach has translated into diplomatic and political
of the existing defence cooperation between the two nations. support in the context of developments within the region
and manifested in the form of tangible and functional
cooperation instruments the most vital being bilateral defence
partnership.

www.civilsdaily.com 71
 ecause of the volume of maritime trade that passes through
• B • Emphasis on naval diplomacy: It is also in the last few years
sea lanes of communication in the Indo-Pacific and potential as that Vietnam has augmented its emphasis on naval diplomacy
well as estimated energy reserves in these waters, maritime and strengthened its ties with the US alongside the extension
cooperation between countries in the region have expanded of its engagement with India and other ASEAN members.
exponentially. • Despite the fact that the China factor has provided impetus to
the solidification of ties, it is also important to consider that
Emphasis on the cooperative mechanism mutual cooperation is not driven solely by it.
 e enhanced geostrategic prominence and attendant
• Th • Support in the rubric of Indo-Pacific: Both countries have
uncertainties vis--vis Chinas expanding and often abrasive expanded areas of collaboration and are supportive of each
footprints in the Indo-Pacific have resulted in an overall others individual and multilateral involvements within the
increase in emphasis on cooperative mechanisms and rubric of the Indo-Pacific.
frameworks across the region.
• D
 efence partnership between the two countries has been Conclusion
growing steadily following the signing of the Defence Protocol Convergences between New Delhi and Hanoi has naturally found
in 2000 and today covers extensive navy-to-navy cooperation. expression in bilateral relations and the two countries are poised
to develop their partnership further in the coming years.
Dealing with Chinese transgression
• V ietnam has and continues to be one of the most vocal Back2Basics: About UNCLOS
countries with respect to Chinas periodic transgressions in • U NCLOS is sometimes referred to as the Law of the Sea
the South China Sea. Convention or the Law of the Sea treaty.
• F reedom of navigation: In India, Vietnam has found an equally • It came into operation and became effective from 16th
uncompromising partner when it comes to the question of November 1982.
violations of freedom of navigation and threats to sovereign • It defines the rights and responsibilities of nations with respect
maritime territorial rights as enshrined under international to their use of the worlds oceans, establishing guidelines for
maritime law. businesses, the environment, and the management of marine
• N ew Delhi has supported Vietnams position in the South natural resources.
China Sea with respect to Beijings destabilising actions and • It has created three new institutions on the
coercive tactics backing by reiterating the irrefutability of international scene :
the UNCLOS. 1. International Tribunal for the Law of the Sea,
• I ndia has also not backed down from continuing ONGC Videsh 2. International Seabed Authority
Ltd (OVL)s oil exploration project in Block 128 (which is within 3. Commission on the Limits of the Continental Shelf
Hanois EEZ) despite Chinas protests.

G20 : ECONOMIC COOPERATION AHEAD

G7
International Relations | GS2: Bilateral, Regional and Global Groupings and agreements involving India 
Note4Students | From UPSC perspective, the following things are important :
Prelims level : Not much
Mains level : Paper 2- G-7 and India

Context • As of 2018, the G7 represents 58% of theglobal net


The meeting of G7 leaders that concluded in Bavaria was attended wealth($317trillion),more than 46% of the globalgross
by India as an observer. domestic product(GDP) based onnominal values, and more
than 32% of the global GDP based onpurchasing power parity.
• The seven countries involved are also the largestIMF-advanced
About G7 (Group of Seven) Countries: economiesin the world.
 e Group of Seven ( G7 ) is an inter-governmental
• Th
• The European Union is sometimes considered an eighth
political forum
member of the G-7, since it holds all the rights and
• I t consisting ofCanada,France,Germany,Italy,Japan, theUnited
responsibilities of full members except to chair or host
Kingdomand theUnited States.
the meeting.
• Th
 e heads of government of the member states, as well as the
representatives of theEuropean Union, meet at the annual
G7 Summit.

72 OP-ED | JUNE 2022


Time Line: • More recently, the Global Apollo Program was launched out
• Th
 e concept of a forum for the worlds major industrialized of the 2015 G7 summit meeting. Designed to tackle climate
countries emerged before the1973 oil crisis. On March 1973, change through clean energy research and development, the
theU.S. Secretary of the Treasury convened an informal Apollo Program was conceived by the UK but failed to generate
gathering offinance ministersfrom Germany, and the traction until the other G7 countries agreed to support it.
United Kingdom. • The programme calls for developed nations to commit to
• I n mid-1973, at the World Bank-IMF meetings, Shultz proposed spending 0.02% of their GDP on tackling climate change from
the addition of Japan to the original four nations, who agreed. 2015 to 2025; an amount that would total USD 150 billion over
• Th
 e informal gathering of senior financial officials from the a 10-year period.
United States, the United Kingdom, Germany, Japan, and • The main benefit of the G7 is that it is a driving force and
France became known as the Group of Five a space where new solutions can be tested, before being
• I n1975, a summithosted by France brought together promoted in other forums such as the United Nations and
representatives of six governments: France, multilateral technical or financial institutions. G7 is thus
Germany,Italy,Japan, the United Kingdom, and the viewed as supporter of UN
United States. • The G7 has been behind very concrete achievements including
• I n 1976, with Wilson out as prime minister of Britain, Schmidt the creation of
andGerald Fordfelt an English speaker with more experience • Financial Action Task Force (FATF)
was needed, soPierre Trudeau, the Prime Minister of Canada, • European Bank for Reconstruction and Development (EBRD)
the next largest advanced economy after the first six, was • Deauville Partnership launched after the Arab Springs
invited to join the group and the group became the Group of • Muskoka Initiative to reduce maternal and infant mortality
Seven (G7). • The G7 has strengthened international economic and security
• S ince first invited by the United Kingdom in 1977, policies, advanced discussion of key global issues including
theEuropean Unionhas been represented by thepresident of climate change and gender equality, brought donors together
the European Commissionand the leader of the country that and supported disarmament programs.
holds thepresidency of the Council of the European Union;
theCouncil Presidentnow also regularly attends. Ineffectiveness of G7
• G 7 is not representative in current times. When it was
Purpose established it accounted for 2/3rd of global GDP. But now it
• Th
 e major purpose of the G-7 is to discuss and deliberate on accounts only for 1/3rd on a PPP basis and less than 50% on a
international economic issues. It sometimes acts in concert nominal basis(market prices).
to help resolve other global problems, with a special focus on • Emerging 7(E7) economies of India, China, Indonesia, Brazil,
economic issues. Mexico, Russia, Turkey are not part of it. This makes the group
• G
 7 fills out numerous global top lists: ineffective in tackling the global economic crisis as was seen in
• L
 eading export countries, the 2007-08 global crisis. G20 is more representative than G7
• L
 argest gold reserves, in this respect.
• L
 argest nuclear energy producers, • G7 failed in tackling global issues and challenges of Climate
• T
 op contributors to the UN budget. change, terrorism(ISIS etc), West Asian crisis, COVID 19
pandemic. Its failures include:
• G7 accounts for 59% of historical CO2 emissions and pledged
Expansion to G-8
phase out fossil fuels. Yet there is no visible progress of the
• Th
 e G-7 responded as the global economy evolved. In 1991, the
same and they currently account for twice the CO2 emission
Soviet Union pledged to create an economy with freer markets
than African continent.
and held its first direct presidential election.
• In terms of terrorism, ISIS has thousands of fighters from G7
• F ollowing the 1994 G7 meeting in Naples, Russian President
countries.
held meetings with G-7 member countries, in what became
• West Asian crisis in Syria, Yemen, Iraq has led to a migrant
known as the P-8 (Political 8).
exodus to European nations. G7 nations failed in addressing
• I n 1998, after urging from leaders including U.S. President,
this migrant crisis leading to deaths and inhumane
Russia was added to the G-7 group as a full-time member,
statelessness for millions.
creating a formal G-8.
• Weakening of rules-based of trade regime through WTO and
• H owever, in 2014, Russia was suspended from the group after
trade wars has the active role of G7 countries
the annexation of Crimea and tensions in Ukraine.
• Alternatives and objectives to pursue:
• In the context of COVID 19, multilateralism which promotes
Achievement mechanisms that address global problems is needed.
G7 Summit has been the birthplace for several global initiatives. • These mechanisms need to be representative and must include
• I n 1997, the G7 countries agreed to provide $300 million to current and emerging economies. The World of 2050 report
the effort to contain the effects of the reactor meltdown in by PWC predicts top economies by 2050 include China, India,
Chernobyl. the US, Indonesia, Brazil and Russia. Along with these, Mexico,
• Th
 en, at the 2002 summit, members decided to launch Turkey, UK. France, Germany, South Korea and Australia need
a coordinated response to fight the threat of AIDS, to be included in the new mechanism.
Tuberculosis and Malaria.
• Th
 eir efforts led to the formation of the Global Fund, an
innovative financing mechanism that has disbursed more
Declining share G7 and rising of E7 in world GDP
• W
 hen constituted, the G7 countries accounted for close to two-
than $45 billion in aid and has saved the lives of over 38
thirds of global GDP.
million people.

www.civilsdaily.com 73
• A
 ccording to the 2017 report of the accountancy firm, PwC, The • Supply Chain Resilience- The G7 leaders remain committed to
World in 2050, they now account for less than a third of global coordinate on economic security, strengthen the resilience of
GDP on a purchasing power parity (PPP) basis. supply chains while tackling rising costs of living for citizens.
 nd less than half on market exchange rates (MER) basis.
• A • Climate Cooperation: The G7 leaders endorsed the goals of an
• Th
 e seven largest emerging economies (E7, or Emerging 7), international Climate Club to accelerate the implementation
comprising Brazil, China, India, Indonesia, Mexico, Russia and of the Paris Agreement. G7 leaders committed to highly
Turkey, account for over a third of global GDP on purchasing decarbonised road sector by 2030; fully or predominantly
power parity (PPP) terms.=JIY76And over a quarter on an decarbonised power sector by 2035.
MER basis. • The Climate Club, as an intergovernmental forum of high
ambition, will be inclusive in nature and open to countries
Advantages of including India in G7 that are committed to the full implementation of the
• E xpansion is needed to improve the groupings effectiveness as Paris Agreement
a multilateral forumto arrive at consensus on issues like climate • Indian Prime Minister highlighted Global Initiative for
change, security contributions, space cooperation etc. It is only LiFE (Lifestyle for Environment) campaign. The goal of this
through expansion the grouping can be effective and suited to campaign is to encourage an eco-friendly lifestyle.
the times. • Investment Partnership: G7 countries have launched the
• I ndia had welcomed the decision and commended Former US Partnership for Global Infrastructure and Investment (PGII),
President Trump for his creative and far-sighted decision to a joint initiative to fund infrastructure projects in developing
expand the format of the grouping to keep up with the new countries. Through the partnership, they aim to mobilise
realities of the post-COVID world. USD 600 billion over the next five years to narrow the global
• Th
 e proposed G-11 grouping would recognise India’s place investment gap.
amongst the worlds richest nations. Membership will • Health- The G7 leaders reaffirmed their commitment to
acknowledge India’s global voice equitable global access to safe, effective and affordable vaccines,
• I t will provide a platform for India to address its concerns like therapeutics, diagnostics and other essential medical goods.
terrorism and ensure that world work towards it Leaders also endorsed the G7 pact for pandemic readiness.
• I t helps increase the soft power of India • China: G7 expressed its concern about the situation in the
• E xclusion of China from G-11 means possible strengthening of East and South China Seas and about also the human rights
India’s alliance against China situation in China (Hongkong, Xinjiang issues). They called on
 is is step in democratization of international institutions
• Th China to pressurize Russia to withdraw its troops from Ukraine.
which are facing the criticism of being biased in favour of • Iran : G7 reiterated its clear commitment that Iran must never
developed countries. develop a nuclear weapon and diplomatic solution remains the
• N ote that a separate G20 forum was formed in 1999, so as best way to restrict Irans nuclear programme
to bring more countries on board to address global economic • Civil Society Cooperation: G7 leaders will also cooperate with
concerns. India is a member and is slated to host G20 civil society and partners to
summit in 2022. • Strengthen the resilience of our societies
• D uring the three-day meeting, the G7 leaders discussed a wide • Promote human rights online and offline
range of topics including • Address disinformation
• U kraine and cooperating on foreign policy • Achieve gender equality
• A ddressing energy and food security
• I nvesting in climate and health Global issues that need to addressed in order of
• P romoting partnerships for infrastructure and investment priority are:
• S haping the global economy • T ackling COVID 19 crisis
• A dvancing gender equality • Reviving international trade and growth in a sustainable
• S haping international cooperation method to reduce environmental impact and inequalities
• Tackling Climate change
Major outcomes of the Recent summit • Counter-terrorism and preventing state sponsorship of terror
• R
 eiteration of Democratic Values The G7 leaders adopted • The counter-proliferation of nuclear and Biological weapons.
a communique to jointly defend universal human rights and In the context of COVID 19, extra care must be taken to
democratic values, the rules-based multilateral order and the implement the Biological weapons convention to prevent
resilience of democratic societies. future pandemics
• S
 upport for Ukraine The G7 leaders re-emphasised their • Regional issues need to be taken up
condemnation of Russias illegal and unjustifiable war of • Preventing nuclear proliferation with respect to Iran
aggression against Ukraine. G7 countries have pledged • Peace in West Asia, Afghanistan, Gulf
and provided EUR 28 billion in budget aid and are strongly • Reduction of tensions in the Korean peninsula and the South
committed to support Ukrainian reconstruction through an China Sea.
international reconstruction plan.
• R
 educed Energy Dependence on Russia: The G7 leaders Conclusion
committed to phase out dependency on Russian energy. They India’s participation in this meeting as an observer serves to
ensured to secure the energy supply and reduce price surges by advance its foreign and security policy objectives and will keep it
exploring additional measures such as price caps. in good stead when it assumes the G20 presidency in December.
• F
 ood Security: The G7 countries will also increase global
food and nutrition security through the Global Alliance on
Food Security.

74 OP-ED | JUNE 2022


FOREIGN POLICY WATCH: INDIA-MIDDLE EAST

The significance of PM’s visit to the UAE


International Relations | GS2: Bilateral, Regional and Global Groupings and agreements involving India 
Note4Students | From UPSC perspective, the following things are important :
Prelims level : Not much
Mains level : Paper 2- India-UAE relations

Context New avenues for multilateral cooperation


Prime MinisterNarendra Modis visit to the UAEon June 28 was • Th
 e rapid normalisation of ties between the UAE and Israel
his fourth, having visited the country earlier in August 2015, in following the Abraham Accords of August 2020 has also
February 2018 and again in August 2019. opened new avenues of trilateral and multilateral cooperation.
• Technology, capital and scale: Some Israeli tech companies are
Why do the Gulf and UAE matters to India? already establishing a base in Dubai and seeking to marry niche
 e UAE has given crucial support to India in the Islamic
• Th technologies with Emirati capital and Indian scale.
world, first by inviting our late External Affairs Minister • 2I2U: The US has announced that President Joe Bidens
Sushma Swaraj as a guest of honour at an OIC foreign ministers forthcoming visit to West Asia will see a virtual summit of what
meeting in Abu Dhabi. it calls the 2I2U, a new grouping that brings together India,
• Th
 e UAE stood with us on Jammu and Kashmir following the Israel, the US and UAE.
abrogation of Article 370.
 e Gulf is our third-largest trading partner.
• Th Conclusion
• Th
 e Gulf region is our principal source of hydrocarbons. The UAE today is India’s closest partner in the Arab world. Both
• I t is also a major source of foreign investment. countries need to expand the areas of cooperation and deepen
• Th
 e region is home to some 8 million Indians who send in over their engagement.
$50 billion annually in remittances.
Back2Basics: Abraham Accords
Deepening bilateral ties • Th
 e IsraelUAE normalization agreement is officially called the
• C EPA: In a virtual summit with Sheikh Mohamed in February Abraham Accords Peace Agreement.
2022, both sides signed a Comprehensive Economic • It was initially agreed to in a joint statement by the United
Partnership Agreement (CEPA). States, Israel and the United Arab Emirates (UAE) on
• C EPA is a significant milestone that was negotiated and August 13, 2020.
finalised in just 88 days and promises to increase bilateral trade • The UAE thus became the third Arab country, after Egypt
from $60 billion to $ 100 billion in five years. in 1979 and Jordan in 1994, to agree to formally normalize
• I t is expected to help Indian exports in areas ranging from gems its relationship with Israel as well as the first Persian Gulf
and jewellery and textiles to footwear and pharmaceuticals, country to do so.
apart from enhanced access for Indian service providers to 11 • Concurrently, Israel agreed to suspend plans for annexing parts
specific sectors. of the West Bank.
• V ision statement: An ambitious, forward-looking Joint Vision • The agreement normalized what had long been informal but
Statement titled, Advancing the India and UAE Comprehensive robust foreign relations between the two countries.
Strategic Partnership: New Frontiers, New Milestones was
also issued.
• Th
 e Dubai-based DP World and India’s National Skills
Development Council signed an agreement to set up a Skill
India Centre in Varanasi to train local youth in logistics, port
operations and allied areas so that they can pursue overseas
employment.

www.civilsdaily.com 75
SECURITY ISSUES

76 OP-ED | JUNE 2022


INDIAN ARMY UPDATES

Analysing the Agnipath scheme


Security Issues | GS3: Various Security Forces, Agencies & Their Mandates 
Note4Students | From UPSC perspective, the following things are important :
Prelims level : Not much
Mains level : Paper 3- Agnipath scheme

Context • Adverse effect on professional capabilities: But its adverse


Recently, the Agnipath scheme for recruitment of short-term effect on the professional capabilities of the armed forces
contracted soldiers was announced. is certain.
• It starts with the very high turnover of young soldiers,
the increase in training capacities and infrastructure and
About Agnipath Scheme the augmentation of the administrative setup for greater
• Th
 is will be the only form of recruitment of soldiers into the
recruitment, release, and retention of soldiers.
three defence services from now.
• An armed forces boasting of a poor teeth-to-tail ratio is
• Th
 e scheme aims at strengthening national security and
further increasing the tail.
for providing an opportunity to the youth to serve in the
• Impact on operational capabilities: The tooth-to-tail ratio
armed forces.
(T3R), in military jargon, is the amount of military personnel
• R
 ecruits under the scheme will be known as Agniveers.
it takes to supply and support (“tail”) each combat soldier
• A
 fter completing the four-year service, they can apply for
(“tooth”).
regular employment in the armed forces.
• The Indian Air Force and the Indian Navy employ their airmen
• Th
 ey may be given priority over others for various jobs in other
and sailors in very specialised roles, which require technical
government departments.
skills, and a high degree of training and experience.
• Th
 e move is expected todecrease the average age profile of
• Because the short-term contractual soldier model (the Agniveer
armed forces personnelfrom the current 32 to 24-26 years over
scheme) is going to take a few years to fully play out at an
a period of time.
organisational level, the actual degradation of operational
capability will only be known then.
Benefits of the Agnipath Scheme • Class-based recruitment abolished: In the Agnipath proposal,
• L
 ower the average age: The average age in the forces is 32 the class-based recruitment has been replaced with an all-India
years today, which will go down to 26 in six to seven years, the all-class recruitment.
scheme envisions. • It will strike at the core of the organisational management,
• Y
 outhful armed forces will allow them to be easily trained for leadership structures and operating philosophy of the
new technologies. Indian Army.
• E
 mployment opportunities: It will increase employment • Even though the soldiers in the Indian Army are professionally
opportunities and because of the skills and experience acquired trained, they also draw their motivation from their social
during the four-year service such soldiers will get employment identity where each soldier cares for his reputation among the
in various fields. peers in his caste group or his village or his social setting.
• H
 igh-skilled workforce: The scheme will also lead to the • To replace that with a pure professional identity of a soldier will
availability of a higher-skilled workforce to the economy which bring its own challenges in a tradition-bound army.
will be helpful in productivity gain and overall GDP growth • Training challenges : There will be major problems in training,
integrating and deploying soldiers with different levels of
Financial constraints and challenges experience and motivations.
• D irecting funds towards modernisation: It has been argued • An organisation which depends on trust, camaraderie and
that the savings in the pensions bill which will show up on the esprit de corps could end up grappling with rivalries and
books only after a couple of decades would be directed towards jealousies amongst winners and losers, especially in their final
the modernisation of defence forces. year of contract.
• Th
 e armed forces do not have that kind of time available to • Legal challenges: Even though the Government has kept the
them to postpone their already long-delayed modernisation. contract at four years to deny the Agniveer gratuity and is not
• S hortage : The Indian Air Force is already down to 30 counting the contractual period towards regular service, these
squadrons of fighter jets against the 42 squadrons it needs, and provisions are bound to be challenged legally.
the Indian Navy is at 130 ships when its vision was to be a 200- • Over time, this will lead to the salary and pension budget
ship navy; the Indian Army is already short of 1,00,000 soldiers. creeping back up again.
• I nstead of expanding the economy to support the military, the • Political imbalance: The Agnipath scheme also does away with
Government has resorted to shrinking the military. the idea of a State-wise quota for recruitment into the Army,
based on the Recruitable Male Population of that State which
was implemented from 1966.
Issues with the short-term recruitment
• This prevented an imbalanced army.
• N
 o theoretical modelling : As the short-term recruitment
• Academic research shows that the high level of ethnic
policy has neither been theoretically modelled nor tried out as
imbalance has been associated with severe problems of
a pilot project, the exact consequences of the move will only be
democracy and an increased likelihood of civil war.
known as they play out.

www.civilsdaily.com 77
• I mpact on motivation: A short-term contractual soldier, • This could happen in India as the youth who are not given
without earning pension, will be seen as doing jobs after his regular recruitment after four year’s service would turn
military service that are not seen to be commensurate in status to violence.
and prestige with the profession of honour.
• I mpact on motivation: It will reduce the motivation of those Conclusion
joining on short-term contracts while diminishing the honour The Governments yearning for financial savings runs the risk of
of a profession which places extraordinary demands on reducing the honour of a profession, the stability of a society and
young men. the safety of a country.
• S ocial unrest: There are numerous examples of demobilised
soldiers leading to increased violence against minorities.

DEFENCE SECTOR - DPP, MISSIONS, SCHEMES, SECURITY FORCES, ETC.

Need for a National Security Doctrine


Security Issues | GS3: Various Security Forces, Agencies & Their Mandates 
Note4Students | From UPSC perspective, the following things are important :
Prelims level : Agnipath scheme
Mains level : Paper 3-Agnipath Scheme

Context • The country should have an overall national security


All major powers undertake a periodic (every 4-5 years) review document from which the various agencies and the arms of
of their evolving national security objectives. The government of the armed forces draw their mandate and create their own
India, on the other hand, has neglected to undertake any such respective and joint doctrines which would then translate into
exercise, in the past 75 years.National security is a concept that a operational doctrines for tactical engagement.
government, along with its parliaments, should protect the state • In the absence of this, as is the case in India today, national
and its citizens against all kind of national crises. strategy is broadly a function of ad-hocism and personal
preferences.
National Security Doctrine
• A national security doctrine helps the statesmen identify India’s defence budget for FY 2022-23
and prioritize the countrys geopolitical interests. It • I n 2022-23, the Ministry of Defence has been allocated Rs
encompasses the totality of the countrys military, 5,25,166 crore.
diplomatic, economic and social policies that will protect and • This includes expenditure on salaries of armed forces and
promote the countrys national security interests. civilians, pensions, modernisation of armed forces, production
• I ndia does not have any such doctrine. establishments, maintenance, and research and development
organisations.
• According to the Stockholm International Peace Research
Need for India to have a National Institute (SIPRI), India was the third largest defence spender in
Security Doctrine: absolute terms in 2020 after USA and China.
• P orous international boundaries, growing terror threats, • In the last decade (2012-13 to 2022-23), the budget of the
increasing insurgency within country demand government to Ministry of Defence has grown at an annual average rate
envisage and formulate a National Security Doctrine for India. of 8.6%, while total government expenditure has grown
 e existence of such a document will dissuade adventurism
• Th at 10.8%.
and will reassure our citizens that appropriate measures are in • Defence expenditure as a percentage of GDP declined from
place to protect us. 2.3% in 2012-13 to 2% in 2022-23.
• M any of India’s national security inadequacies stem from the
absence of a national security/defence vision.
Neglect of defence expenditure in India
• I t will not only become the basis for strategy-formulation,
• D efence expenditure as non-plan expenditure: Independent
contingency-planning and evolution of SOP s, but also send a
India saw defence expenditure being relegated to the
reassuring message to our public.
non-plan category, within the ambit of a Soviet-inspired,
• I t is necessary in the face of having nuclear-armed neighbours,
central economy.
Pakistan and China.
• Pension bill linked to defence budget: In another anomaly,
• T o define India’s role in the world and its commitment to
the pension bill of veteran soldiers a separate charge on the
protecting the life, liberty and interests of its people.
exchequer was linked to the defence budget.

78 OP-ED | JUNE 2022


• N
 eglect of modernisation needs: And the growing pension • Later, the government extended the upper age limit to 23 years
bill was given as an excuse for the dwindling funds available for for recruitment in 2022.
force-enhancement and hardware replacement/modernisation. • The personnel to be recruited under the new scheme will be
• A
 s a result, the finance ministry, instead of finding ways known as Agniveers.
and means of raising essential, additional funds for national
defence demanded that they evolve measures for reducing the Suggestions for Agneepath Scheme
pension bill. • N ot the best time to introduce reform : Given the parlous
security situation, on the countrys northern and western
Two issues with our national security approach borders as well as the ongoing domestic turbulence, this is
not the best time to cast the armed forces already short of
1] Lack of periodic review manpower into turmoil, with a radical and untried new
• E very nation faces the eternal guns vs butter dilemma. recruitment system.
• P eriodic review: All major powers undertake a periodic (every • The scheme is suitable for the army only: Such a scheme, in its
4-5 years) review of their evolving national security objectives, present form, is suitable only for the army, whose large infantry
the options available, and the economic/military means component is not excessively burdened with technology.
available for achieving them. • In case of the navy and air force, at least 5-6 years are required
• A part from providing fiscal guidance, this process also before a new entrant can acquire enough hands-on experience
facilitates the evolution of a national security strategy. to be entrusted with the operation or maintenance of lethal
• C hina, has, since 2002, been issuing, with unfailing regularity, weapon systems and complex machinery and electronics.
a biennial Defence White Paper, which encapsulates all of the • Trial before implementation: A radical change of this nature
foregoing, and is available on the Internet; for the information should have been subjected to a trial before service-wide
of foes and friends, alike. implementation.
• Th
 e government of India, on the other hand, has neglected to • Ideally, a few units of the regular or Territorial Army
undertake any such exercise, in the past 75 years. could have been earmarked as a testing ground, and feed-
• I ndia is amongst the few major powers which has failed to issue back obtained.
a National Security Strategy or Doctrine. • Legal backing topost-demobilisation employment:
Experience of the past has shown that the home ministry has
resisted induction of ex-servicemen into the armed-police
2] Lack of organisation reforms and para-military forces, on the grounds that it would spoil the
• A
 second fact that we need to face is that our armed forces have career path of their own cadres.
remained in a Second World War time-warp, as far as their • Neglect by the state government : Similarly, state
organisation and doctrines are concerned. governments and other agencies have blatantly ignored the
• L
 ack of political will and internal resistance: Attempts at reservations mandated for ESM.
organisational reform have come to naught due to lack of • Therefore, if the Agnipath scheme has to offer a meaningful
political will as well as internal resistance from the services ; promise of post-demobilisation employment or education,
with the constitution of a Chief of Defence Staff and creation of this must be mandated by an Act of Parliament, on the lines
a Department of Military Affairs providing the latest examples. of the GI Bill enacted by the US Congress.

Way forward Conclusion


 iven the transformed nature of warfare, down-sizing of the
• G A scheme on the lines of Agnipath, appropriately constituted,
Indian army, by substituting manpower with smart technology and focused on enhancing combat effectiveness rather than
and innovative tactics, has become an imperative need. effecting savings or generating employment, could have triggered
a reformative process. But the above given caveats need to be
Agnipath Scheme borne in mind in this context.
• R
 ecently announced Agnipath scheme provides for the
recruitment of youths in the age bracket of 17-and-half to 21
years for only four years with a provision to retain 25 per cent
of them for 15 more years.

www.civilsdaily.com 79
ENVIRO &
BIODIVERSITY

80 OP-ED | JUNE 2022


ISSUES WITH THE ENVIRONMENTAL PERFORMANCE INDEX (EPI)

Issues with the Environmental Performance Index (EPI)


Enviro & Biodiversity | GS3: Conservation, Environmental Pollution & Degradation, Eia 
Note4Students | From UPSC perspective, the following things are important :
Prelims level : EPI
Mains level : Paper 3- Environmental Performance Index (EPI) and related issues

Context • Against CBDR: This approach is contrary to widely accepted


The 2022 Environmental Performance Index (EPI) produced ethical principles, especially the global political agreement on
by Yale and Columbia Universities and released on World common-but-differentiated-responsibility (CBDR).
Environment Day (June 5) has triggered much consternation in • The Yale-Columbia approach ignores the fact that countries
India, as the country is ranked last (180th). have different responsibilities for past accumulations and are at
different levels of emissions and energy use.
• The inclusion of indicators on emissions intensity and
Issues with EPI 2022 emissions per capita partly addresses this issue, but these two
• I gnoring the past effects: Indicators may focus on current
account for 7 per cent of the weight, versus 89 per cent for
rates of increase or decrease in environmental pressures
indicators derived from current emission trends.
(flows) as the EPI does for carbon dioxide emissions and tree
cover gains but under-state the accumulated effect (stocks)
that relates to actual harm, thereby ignoring past effects. Implications EPI’s approach
• S ame standard in different socio-ecological context: When • Th
 is approach is guaranteed to make richer countries look good,
ranking countries, one is essentially applying the same standard because they have accumulated emissions in the past, but these
across vastly different socio-ecological contexts this involves have started declining in the last decade.
difficult choices. • Meanwhile, poorer countries that have emitted comparatively
• F or example, the EPI leaves out arsenic in water, which is a little in the past, look bad.
major threat in Bangladesh. • The EPIs flawed and biased approach distracts from a much-
• D ifficulty in measurement of frogress on climate change: needed honest conversation about the environment in India.
Climate change is a global environmental problem, and because • India’s local environmental performance on air, water and
its effects depend on the accumulation of greenhouse gases forests is deeply problematic.
over time, measuring progress in a given country is challenging. • Air quality in India is now the second largest risk factor
• C limate change mitigation has to be measured against what it for public health in India, behind only child and maternal
is reasonable and fair to expect from different countries, taking nutrition.
into account their past emissions as well as national contexts. • Rivers and lakes are increasingly polluted, rivers are drying,
• Th
 ere has been an inconclusive 30-year debate on this question; groundwater tables are rapidly declining, and gains in tree cover
any choice of benchmark involves major ethical choices. hide declining natural productivity and diversity of forests and
• E PI has given 38 per cent weight to the climate change in grasslands.
the index.
• Th
 ey assume that the world must reach net zero emissions Conclusion
by 2050, and so the appropriate benchmark is whether all While indices like these have a limited attention-grabbing
countries are reducing emissions and reaching zero by 2050. purpose, they serve this purpose well only when they are focused,
limited to easy-to-measure metrics, and consciously minimise
value judgements. The EPI 2022 resoundingly fails this test.

www.civilsdaily.com 81
SOIL HEALTH MANAGEMENT - NMSA, SOIL HEALTH CARD, ETC.

Land Degradation
Enviro & Biodiversity | GS3: Conservation, Environmental Pollution & Degradation, Eia 
Note4Students | From UPSC perspective, the following things are important :
Prelims level : Soil Health Card
Mains level : Paper 3- Soil degradation

Context Status:
A key element of sustainable food production is healthy soil • L and Degradation:
because nearly 95 per cent of global food production depends on • Some 97.85 million hectares (29.7%) of India’s total
soil. The current status of soil health is worrisome. geographical area (TGA) of 328.72 mha underwent land
degradation during 2018-19.
Land Degradation: • In 2003-05, 94.53 mha (28.76% of the TGA) underwent land

• L
 and degradation is caused by multiple forces, including
degradation. The number increased to 96.40 mha (29.32% of
extreme weather conditions, particularly drought. It is also
the TGA) in 2011-13.
caused by human activities that pollute or degrade the quality
• Desertification:
of soils and land utility.
• Some 83.69 mha underwent desertification in 2018-19. This
was greater than the 81.48 mha in 2003-2005 and 82.64 mha in
Desertification: 2011-13 that underwent desertification.
• L
 and degradation within dry land regions (arid, semi-arid and • State wise Data:
dry sub-humid regions) is termed as desertification. • Around 23.79% of the area undergoing desertification /
• D
 esertification is the process by which the biological land degradation with respect to TGA of the country was
productivity of drylands is reduced due to natural or manmade contributed by Rajasthan, Maharashtra, Gujarat, Karnataka,
factors. It does not mean the expansion of existing deserts. Ladakh, Jharkhand, Odisha, Madhya Pradesh and Telangana.
• India witnessed an increase in the level of desertification in 28
of 31 states and Union territories between 2011-13 and 2018-
19, a closer look at data in the atlas showed.

82 OP-ED | JUNE 2022


Causes: • It aims to restore ecological balance by harnessing, conserving
• L oss of Soil Cover: and developing degraded natural resources with the creation
• L oss of soil cover, mainly due to rainfall and surface runoff, is of Rural Employment. Now it is subsumed under Pradhan
one of the biggest reasons for desertification. It is responsible Mantri Krishi Sinchai Yojana which is being implemented by
for 11.01% of the desertification in the country. NITI Ayog.
• C utting forests adversely affect the soil and cause degradation. • Desert Development Programme:
As urbanization increases, the demand for resources is also • It was launched in 1995 to minimize the adverse effect of
increasing. drought and to rejuvenate the natural resource base of the
• V egetation Degradation: identified desert areas.
• V egetation degradation is defined as, “the temporary or • It was launched for hot desert areas of Rajasthan, Gujarat,
permanent reduction in the density, structure, species Haryana and cold desert areas of Jammu & Kashmir and
composition or productivity of vegetation cover”. Himachal Pradesh.
• I t is found to be responsible for 9.15% of desertification in • United Nations Convention to Combat
the country. Desertification (UNCCD):
• W ater Erosion: • India became a signatory to the UNCCD in 1994 and ratified
• I t results in Badland Topography which itself is an initial stage in 1996. India is working to restore 26 million hectares of
of desertification. degraded land by 2030.
• B adlands are a type of dry terrain where softer sedimentary • India is working hard to achieve its national commitment
rocks and clay-rich soils have been extensively eroded. on Land Degradation Neutrality (LDN) ( Sustainable
• I n 2011-13, water erosion was responsible for 10.98% of Development Goal target 15.3).
desertification in the country. • LDN is a state whereby the amount and quality of land
• W ind Erosion: resources, necessary to support ecosystem functions and
• S and encroachment by wind reduces fertility of the soil making services and enhance food security, remains stable or increases
the land susceptible to desertification. within specified temporal and spatial scales and Ecosystems.
• I t was found to be responsible for 5.46% of the • National Afforestation Programme:
desertification in India. • It has been implemented since 2000 for the afforestation of
• C limate Change: degraded forest lands. It is being implemented by the Ministry
• I t may exacerbate desertification through alteration of spatial of Environment, Forest and Climate Change
and temporal patterns in temperature, rainfall, solar radiation • National Action Programme to Combat Desertification:
and winds. • It was prepared in 2001 to address issues of increasing
desertification and to take appropriate actions.
• National Mission on Green India:
Impact:
• It was approved in 2014 with the objective of protecting,
• E conomic Impact:
restoring and enhancing India’s diminishing forest cover with a
• L and degradation threatens agricultural productivity. It
deadline of 10 years.
reduces soil health, thus in turn impacting the livelihood of
rural people.
• C limate Change: Way forward
• I t is exacerbating climate change events, which in turn, are • A fforestation: Forest degradation accounts for the major
causing even greater degradation. share of land degradation costs of India highlighting the need
• F or e.g. degraded land loses its capacity to absorb carbon- to prevent forest degradation. Further, strategy to reduce
dioxide (CO2), a greenhouse gas (GHG) that is the biggest forest dependence for fuelwood, fodder and non-timber
factor in worsening global warming. forest products should be made. Efforts must be made for
• W ater Scarcity: afforestation.
• L and degradation has resulted in a deterioration in the quantity • Using alternative fuels: A major focus for reducing forest
and quality of both surface and groundwater resources. degradation is encouraging rural households dependent on
• Th
 e dryland population vulnerable to water stress and drought forests to switch to alternative fuel sources or at the minimum
intensity is projected to reach 178 million under the most ideal utilise fuel-efficient devices. The Ujjwala scheme is a positive
conditions of 1.5 deg-C warming by 2050. measure but requires a relook to ensure its sustained uptake
• R ights of Indigenous People: and success.
• I nsecure land tenure affects the ability of people and • Preventing overgrazing: Farmers should be discouraged from
communities to fight climate change, which is further overgrazing activities. They must be made aware of the harmof
endangered by land degradation. overgrazing to land productivity.
• Sustainable agriculture: Climate resistant crops need to be
developed and used. Efforts must be made to make farmers
Measures taken by India to Curb Desertification/
aware of overuse of chemical fertilisers. Subsidy may be
Land Degradation: removed for the same and replaced by Cash transfer.
• I ntegrated Watershed Management Programme:

www.civilsdaily.com 83

You might also like