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GS Paper-1
Section-II
(Current Events)
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List of Topics :
1) 15th Finance Commission and its recommendations
2) RCEP and India's refusal to join it
3) India- Us bilateral relations (Recent trends)
4) WHO and its role during COVID-19
5) US-China trade war and its Impact
6) Citizenship Amendment Act, NRC, NPR
7) United Nations-75th anniversary on October 24, 2020
8) QUAD
9) India China territorial disputes
10) UN security council, its reform
11) Indo-Nepal Territorial dispute
12) Atmanirbhar Bharat: It's need and Impact and
Criticism
13) G-7 and India
14) Vocal for Local
15) Brexit and its impact
16) Civil Services Reform: Mission Karmayogi
17) Afghanistan Peace process
18) SAARC Revival
19) India and Indo-Pacific
20) NAM and its relevance
21) South China Sea dispute
22) BRICS
23) SCO (Shanghai Cooperation Organization)
24) India's Vaccine Diplomacy
25) Military Coup in Myanmar
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1. 15th Finance Commission and its

recommendations

Finance Commission is a constitutional body for the purpose of allocation of

certain revenue resources between the Union and the State Governments. It
was established under Article 280 of the Indian Constitution by the Indian
President. It was created to define the financial relations between the Centre
and the states. President of India constitutes the Finance Commission every
five years or on time considered necessary by him.
Finance Commission Chairman and Members

 Chairman: Heads the Commission and presides over the activities. He

should have had public affairs experience.

 Four Members.

 The Parliament determines legally the qualifications of the members of

the Commission and their selection methods.

Qualifications of Finance Commission Chairman and Members

 The 4 members should be or have been qualified as High Court judges,

or be knowledgeable in finance or experienced in financial matters and
are in administration, or possess knowledge in economics.

 All the appointments are made by the President of the country.

 Grounds of disqualification of members:

 found to be of unsound mind, involved in a vile act, if there is a conflict

of interest

 The tenure of the office of the Member of the Finance Commission is

specified by the President of India and in some cases, the members are
also re-appointed.

 The members shall give part-time or service to the Commission as

scheduled by the President.
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 The salary of the members is as per the provisions laid down by the
Constitution.

Functions of Finance Commission

The Finance Commission makes recommendations to the president of India

on the following issues:

 The net tax proceeds distribution to be divided between the Centre and
the states, and the allocation of the same between states.

 The principles governing the grants-in-aid to the states by the Centre

out of the consolidated fund of India.

 The steps required to extend the consolidated fund of a state to boost

the resources of the panchayats and the municipalities of the state on
the basis of the recommendations made by the state Finance
Commission.

 Any other matter referred to it by the president in the interests of sound

finance.

 The Commission decides the basis for sharing the divisible taxes by the
centre and the states and the principles that govern the grants-in-aid
to the states every five years.

 Any matter in the interest of sound finance may be referred to the

Commission by the President.

 The Commission’s recommendations along with an explanatory

memorandum with regard to the actions done by the government on
them are laid before the Houses of the Parliament.

 The FC evaluates the rise in the Consolidated Fund of a state in order

to affix the resources of the state Panchayats and Municipalities.

 The FC has sufficient powers to exercise its functions within its activity
domain.

 As per the Code of Civil Procedure 1908, the FC has all the powers of a
Civil Court. It can call witnesses, ask for the production of a public
document or record from any office or court.
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Advisory Role of Finance Commission

The recommendations made by the Finance Commission are of an advisory

nature only and therefore, not binding upon the government. It is up to the
Government to implement its recommendations on granting money to the
states. To put it in other words, ‘It is nowhere laid down in the Constitution
that the recommendations of the commission shall be binding upon the
Government of India or that it would amount to a legal right favouring the
recipient states to receive the money recommended to be provided to them by
the Commission.

15th Finance commission

• The Commission was chaired by Mr. N.K. Singh and the report was titled
‘Finance Commission in COVID times.’
• The Commission was required to submit two reports. The first report,
consisting of recommendations for the financial year 2020-21. The final report
with recommendations for the 2021-26 period.

Recommendations of the 15th Finance Commission

The 15th Finance Commission proposed recommendations for both vertical

and horizontal devolution.

1. Vertical Devolution
The commission has recommended maintaining the vertical devolution at
41%.
 The idea is to maintain the same level of devolution as recommended
by 14th FC (i.e., 42%), the adjustment of about 1% has been made due
to the changed status of the erstwhile State of Jammu and Kashmir
into the new Union Territories of Ladakh and Jammu and Kashmir.
 Gross tax revenue for 5-year period is expected to be 135.2 lakh crore.
Out of that, Divisible pool (after deducting cesses and surcharges & cost
of collection) is estimated to be 103 lakh crore.
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2. Horizontal Devolution

The horizontal devolution is primarily based on three principles namely need

of states, equity among states and performance of states. To balance all three
principles, six criteria are used to calculate tax distribution- Income Distance,
Area, Population (2011), Demographic Performance, Forest and Ecology and
Tax and Fiscal Transfers.

Table 1 : Horizontal Devolution Criteria

Criteria 14th FC 15th FC

Income Distance 50.0 45.0

Population of 1971 17.5 –

Population of 2011 10.0 15.0

Area 15.0 15.0

Forest Cover 7.5 –

Forest & Ecology – 10.0

Demographic Performance – 12.5

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Tax Effort – 2.5

Total 100 100

 Population: Only 2011 Census numbers are used as per the ToR.
Population criterion is assigned a weight of only 15 per cent as some of
the other criteria will also be scaled by it.

 Income distance: Income distance is the distance of a state’s income from

the state with the highest income. Income of a state has been computed
as average per capita GSDP during the three-year period between 2016-
17 and 2018-19. A state with lower per capita income will have a higher
share to maintain equity among states.

 Demographic performance: The demographic performance criterion has

been used to reward efforts made by states in controlling their
population. States with a lower fertility ratio will be scored higher on this
criterion.

 Forest and ecology: This is calculated as the share of the dense forest of
each state in the total dense forest of all the states.

 Tax and fiscal efforts: This criterion has been used to reward states with
higher tax collection efficiency. It is measured as the ratio of the average
per capita own tax revenue and the average per capita state GDP during
the three years between 2016-17 and 2018-19.

3. Revenue Deficit Grants to States:

 Revenue deficit grants emanate from the requirement to meet the fiscal
needs of the States on their revenue accounts that remain to be met, even
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after considering their own tax and non-tax resources and tax devolution
to them.

 Revenue Deficit is defined as the difference between revenue or current

expenditure and revenue receipts, that includes tax and non-tax.

 It has recommended post-devolution revenue deficit grants amounting to

about Rs. 2.94 lakh crores over the five-year period ending FY26.

 The number of states qualifying for the revenue deficit grants decreases
from 17 in FY22, the first year of the award period to 6 in FY26, the last
year.

4. Performance Based Incentives and Grants to States:

These grants revolve around four main themes.

 The first is the social sector, where it has focused on health and education.

 Second is the rural economy, where it has focused on agriculture and the
maintenance of rural roads.

 The rural economy plays a significant role in the country as it encompasses

two-thirds of the country’s population, 70% of the total workforce and 46%
of national income.

 Third, governance and administrative reforms under which it has

recommended grants for judiciary, statistics and aspirational districts and
blocks.

 Fourth, it has developed a performance-based incentive system for the

power sector, which is not linked to grants but provides an important,
additional borrowing window for States.

5. Fiscal Space for Centre:

 Total 15th Finance Commission transfers (devolution + grants) constitutes

about 34% of estimated Gross Revenue Receipts to the Union, leaving
adequate fiscal space to meet its resource requirements and spending
obligations on national development priorities.
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 Provided range for fiscal deficit and debt path of both the Union and States.

 Additional borrowing room to States based on performance in power sector

reforms.

 XVFC has recognised that the FRBM Act needs a major restructuring and
recommended that the time-table for defining and achieving debt
sustainability may be examined by a High-powered Inter-governmental
Group.

 This High-powered Inter-Governmental Group could also be tasked to

oversee the implementation of the 15th Finance Commission’s diverse
recommendations.

 State Governments may explore formation of independent public debt

management cells which will chart their borrowing programme efficiently.

6. Grants to Local Governments:

 The total size of the grant to local governments should be Rs. 4.3 lakh
crore for the period 2021-26.

 Of these total grants, Rs. 8,000 crore is performance-based grants for

incubation of new cities and Rs. 450 crore is for shared municipal
services.

 A sum of Rs. 2.3 lakh crore is earmarked for rural local bodies, Rs.1.2 lakh
crore for urban local bodies and Rs. 70,051 crore for health grants through
local governments.

 Urban local bodies have been categorised into two groups, based on
population, and different norms have been used for flow of grants to each,
based on their specific needs and aspirations.

 Basic grants are proposed only for cities/towns having a population of less
than a million. For Million-Plus cities, 100 per cent of the grants are
performance-linked through the Million-Plus Cities Challenge Fund (MCF)
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 MCF amount is linked to the performance of these cities in improving their

air quality and meeting the service level benchmarks for urban drinking
water supply, sanitation and solid waste management.

7. Health

 XVFC has recommend that health spending by States should be increased

to more than 8 per cent of their budget by 2022.

 Given the inter-State disparity in the availability of medical doctors, it is

essential to constitute an All India Medical and Health Service as is
envisaged under Section 2A of the All-India Services Act, 1951.

 The total grants-in-aid support to the health sector over the award period
works out to Rs. 1 lakh crore, which is 10.3 per cent of the total grants-
in-aid recommended by XVFC. The grants for the health sector will be
unconditional.

 XVFC has recommend health grants aggregating to Rs. 70,051 crore for
urban health and wellness centres (HWCs), building-less sub centre,
PHCs, CHCs, block level public health units, support for diagnostic
infrastructure for the primary healthcare activities and conversion of rural
sub centres and PHCs to HWCs. These grants will be released to the local
governments.

8. Defence and Internal Security

 The Union Government may constitute in the Public Account of India, a

dedicated non-lapsable fund, Modernisation Fund for Defence and
Internal Security (MFDIS). The total indicative size of the proposed MFDIS
over the period 2021-26 is Rs. 2.3 lakh crore.

9. Disaster Risk Management

 Mitigation Funds should be set up at both the national and State levels, in
line with the provisions of the Disaster Management Act.
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 The Mitigation Fund should be used for those local level and community-
based interventions which reduce risks and promote environment-friendly
settlements and livelihood practices.

 XVFC has recommended the total corpus of Rs.1.6 lakh crore for States
for disaster management for the duration of 2021-26, of which the Union’s
share is Rs. 1.2 lakh crore and States’ share is Rs. 37,552 crore.

 XVFC has recommended six earmarked allocations for a total amount of

Rs. 11,950 crore for certain priority areas, namely, two under the NDRF
(Expansion and Modernisation of Fire Services and Resettlement of
Displaced People affected by Erosion) and four under the NDMF (Catalytic
Assistance to Twelve Most Drought-prone States, Managing Seismic and
Landslide Risks in Ten Hill States, Reducing the Risk of Urban Flooding in
Seven Most Populous Cities and Mitigation Measures to Prevent Erosion).

Criticism of XV-FC (Fifteenth Finance Commission)

 Performance based incentives disincentivizes independent decision-

making. Any conditions on the state's ability to borrow will have an
adverse effect on the spending by the state, particularly on development
thus, undermines cooperative fiscal federalism.

 It does not hold the Union government accountable for its own fiscal
prudence and dilutes the joint responsibility that the Union and States
have.

Conclusion

Several challenges have emerged since these recommendations were made by

the XV-FC in the form of the global economic slowdown, lower tax revenue
realization and above all, the enormous disruption to the economy created by
the Coronavirus pandemic.

These will necessitate several additional demands for allocations to be made

in the coming years.
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Further, several policy issues like streamlining GST, Direct Tax Code,
improving expenditure outcomes, etc. will need special focus from the
government to achieve the noble objectives set before the Finance
Commission.
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2. RCEP and India's refusal to join it

About RCEP

• Regional Comprehensive Economic Partnership (RCEP) is a Free Trade

Agreement (FTA) that has been signed between 15 countries including the 10
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ASEAN members, China, Japan, South Korea, Australia and New Zealand.
• It now forms the world’s largest trade bloc, covering over 2.2 billion people
and accounting for 30 per cent of the world’s economy.
• The RCEP was first proposed at the 19th ASEAN meet in 2011 with an aim
to create a consolidated market for the ASEAN countries and their trade
partners.
• While India was a part of the RCEP’s negotiations, it dropped out in
November 2019, citing significant outstanding issues that remain unresolved.
Although India has been given the option of joining it later.

Recently, 15 Asia-Pacific nations have signed the Regional Comprehensive

Economic Partnership (RCEP), while India chose to opt out of the trade
agreement.

Why did India pull out of RCEP?

• Trade imbalance with RCEP members: India’s trade deficit with RCEP
countries has almost doubled in the last five-six years – from $54 billion in
2013-14 to $105 billion in 2018-19, of which China alone accounts for $53
billion.
• Geopolitical considerations: India wanted RCEP to exclude most-favoured
nation (MFN) obligations from the investment chapter, as it did not want to
hand out, especially to countries with which it has border disputes (China),
the benefits it was giving to strategic allies or for geopolitical reasons.
• Security considerations: Closer economic ties under RCEP have the potential
to make the countries of the region even more vulnerable to China’s economic
and political coercion. This could impact India’s security interests in
Southeast Asia.
• Lack of adequate protection for domestic industries: India’s proposals for
strict rules of origin (ROO) (criteria to determine the source country of a
product based on which they get tariff concessions or duties) and an auto-
trigger mechanism to impose tariffs when imports crossed a certain threshold
were not accepted.
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• Lack of Service component: Most developed RCEP countries where India can
export services, have been unwilling to negotiate wide-ranging disciplines in
services that can create new market access for trade in services in this region.
• Impact on local industries: A large number of sectors including dairy,
agriculture, steel, plastics, copper, aluminium, machine tools, paper,
automobiles, chemicals and others had expressed serious apprehensions on
RCEP citing dominance of cheap foreign goods would dampen its businesses.
• The impact of earlier FTAs on India’s trade balance has been ambiguous:
Several trends in the existing FTAs that does not favour signing another FTA,
include-
o Usually, signing FTAs has required India to significantly cut import
duties, since most partner countries already have low import duties.
This has only led to trade diversion (diversion of trade from non FTA
countries to FTA countries) and has rarely increased India’s exports.
o A NITI Aayog report had stated that India’s exports to its FTAs
partners have not outperformed exports to the rest of the world and
have generally led to greater imports than exports, giving rise to high
trade deficits with FTA partners like South Korea, Japan and ASEAN.
• Other reasons include:
o Lack of credible assurances on market access and non-tariff barriers.
o Differences over tariff structure with China on goods.
o India already has bilateral FTAs with ASEAN, Korea and Japan and
negotiations are underway with Australia and New Zealand.
o The e-commerce chapter has some clauses that affect data
localization norms in India.

Possible Implications of not joining RCEP

• Protectionist image: Withdrawal from RCEP along with other recent
measures such call for self-reliance under Atmanirbhar Abhiyan, revised
public procurement order giving preference to local content etc. can be
perceived as India taking a protectionist stance in terms of trade policy.
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• Impact on India’s export sector: RCEP was envisaged to strengthe n Asian

supply chains, bring in investments and boost the member countries’
competitiveness in global markets. Isolation, loss of potential investments and
lack of competition might affect India’s performance in terms of exports and
growth.
• Lost opportunity in securing a position in the post COVID world: RCEP is
expected to help member countries emerge from the economic devastation
caused by the pandemic through access to regional supply chains.
• Effect on bilateral ties with RCEP countries: There are concerns that the
decision will hamper India’s bilateral trade with RCEP member countries as
they would be inclined to bolster trade within the bloc. Also, it could affect
India’s relation with Japan and Australia with regards to their coordinated
efforts in the Indo-Pacific.
• Loss for consumers: Some products might become more expensive for Indian
consumers, especially when global trade, investment and supply chains face
unprecedented challenges due to the Covid-19 pandemic.

Way Forward
• Discussing benefits and costs of signing RCEP: Further discussions
regarding whether or not to sign RCEP in the future must take into account
facts about India’s trade balance and how its industries, exports and imports
are placed vis-a-vis the trading partners.
• Making India’s export sector globally competitive: Reducing the cost of doing
business through infrastructure investment and improving the business
environment holds the key for improving India’s export prospects.
• Focusing on negotiating bilateral FTAs with countries where trade
complementarities and margin of preference is high for example- European
Union, USA.
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3. India- US Relations (Recent Trends)

India USA have seen ascendance of relationship in the 21st century, which
was crystalised by 2008 India Nuclear Civil Nuclear Agreement. Various
factors, including LPG reforms, rise of China, increasing influence of Indian
community in USA are the factors behind this. Also, the shared values of
democracy, rule of law, human rights, religious freedom bind the countries
together. Key areas of cooperation and recent developments in the relations
are:
• Economy: US is India’s largest trading partner and inbound FDI from the
US is in excess of $50 billion. While Indian and U.S. negotiators failed to forge
a trade deal, they would work on a legal framework for a future deal which
can become Phase 1 of a comprehensive bilateral trade agreement.
• Energy cooperation: US India launched Strategic Energy Partnership, in
2018, to enhance energy security, bolster strategic alignment etc.
o Nuclear Power Corporation of India Limited (NPCIL) and
Westinghouse Electric Company are looking to finalize the techno-
commercial offer for the construction of six nuclear reactors.
o Also, India has started importing crude and LNG from the US in recent
years, with total imports estimated at $6.7 billion — having grown from
zero.
• Collaboration in science, technology and innovation: It is one of the strong
pillars of cooperation between two. E.g. During COVID-19, Indo-US Virtual
Networks for COVID-19 were established to provide a platform to enable
Indian and American scientists from academia, to carry out joint research
activities.
o Both are set to launch joint mission of NASA and ISRO, the world’s
first dual-frequency Synthetic Aperture Radar satellite in 2022.
• Global partnership:
o This has been most defining feature of partnership between two. Both
are part of Quadrilateral security dialogue, and collaborate on forums
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like East Asia Summit, G-20. Also, US expressed interest to India’s

integration to G-7. This has been happening in the backdrop of rising
aggression of China in the region and beyond, which is seen by the US
and India as a common strategic challenge.
o To promote “high quality, trusted standards for global infrastructure
development” India US along with others proposed Blue Dot Network.
It is an across-the-board certification process that aims to bring
governments, the private sector and civil society together. It is seen as
counter to China’s Belt and Road Initiative.
• Diaspora and people to people ties: Strength of Indian diaspora in US is
around 4.5 million which is around 1% of its population. Indian diaspora is a
source and agent of soft power, an effective public diplomacy tool and is
acknowledged for its work ethos, discipline, non-interference and peaceful
living with the locals.

Frictions in India USA relations

• Trade related Transactionalism of USA: It was manifested in USA policies

under former President Trump, like removal of India from its list of developing
countries and taking off India from list of beneficiary-developing countries
under its scheme of Generalised System of Preferences (GSP) by US.
• Tariffs war: Since 2018 both countries were engaged in tariffs war. E.g. In
2018, the US imposed additional tariffs of 25% on steel and 10% on
aluminium imports from various countries, including India. India’s refusal to
remove the 20% tariffs on ICT products caused the trade deal between India
and USA to delay which remains still pending.
• WTO disputes: India USA are involved in WTO disputes on issues like,
Capping prices of medical devices by India, greater Indian market access for
American agriculture and dairy products etc.
• IPR: India is also on U.S.’s “Priority Watch List” which identifies countries
posing challenges to American intellectual property rights. Also, The US wants
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India to strengthen patent regulations, and to ease the limitations American

companies investing in India face.
• H1B visas: US has ramped up H-1B denials under the executive order “Buy
American and Hire American”. H-4 visas have also been issued at a much
lower rate.
• U.S.’s soft policy towards Pakistan: US President said US’ relationship with
Pakistan is a “very good one” and in 2019, U.S. decided to resume The
International Military Education and Training Programme (IMET) that had
been a central pillar of the U.S.-Pakistan military cooperation for years.
• USA tensions with Iran, Russia: Putting unilateral curbs on Russian and
Iranian imports into India through CAATSA would impinge on India’s
relations with Iran, Russia, both relations in which India has strong stakes.
• Divergence of interests in Afghanistan: In the backdrop of Afghan Peace deal,
if the U.S. leaves Afghanistan, it will directly strengthen the hands of the
Taliban in Afghanistan, which means Pakistan’s profile in Afghanistan will be
lifted.
• View on Indo-Pacific strategy: While USA policy on Indo-Pacific is directed
to counter rise of Chinese footprint, India proclaimed that it follows a free,
open, and inclusive Indo-Pacific (FOIIP) policy which differs from US’ free and
open Indo-Pacific (FOIP) policy.

Way forward

• Despite the differences in some areas, the upward trajectory in India USA
relations indicates a sense of greater nuance to the need for
institutionalisation of bilateral ties — towards not only graduating the
bilateral dynamic away from over-dependence on chemistry between the top
political leadership, but also design frameworks in a manner that maximise
convergences between the two countries.
• The changing geopolitics, and increased Chinese aggression necessitates
closer cooperation between India USA. Thus, the relationship is two-sided.
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Just as India benefited from US inputs during Doklam and recent India China
standoff, the US has benefited from Indian defence spending.
• Differences remain, as between any two countries. But attempts have been
made over the past year to reach accommodations. The consequences of
heightened US tensions with Iran have been managed, with India given time
and space to diversify its energy supplies while receiving a waiver from US
sanctions for the port project in Chabahar. These show respect for each
other’s interests.
• While US need to be more sensitive towards India’s reservations against its
soft policy towards Pakistan, India needs to prepare itself for a larger security
role in Afghanistan in a big way. Pakistan’s leverage in Washington is likely
to decrease as the US scales back its presence in Afghanistan and the Gulf.
Also, India needs US considering the Chinese challenge – on borders, in South
Asian region and the IOR.

India-US Defence Agreement:

India and the United States signed Basic Exchange and Cooperation
Agreement (BECA) during the third round of 2 + 2 India-US ministerial
dialogue.
Four foundational agreements are-

Basic Exchange and Cooperation • BECA will allow India and US

Agreement (BECA) for Geospatial militaries to share geospatial and
Intelligence satellite data with eachother. It
shares:
o Maps, charts, commercial and
other unclassified imagery.
o Geodetic, geophysical, geomagnetic
and gravity data.
o Related products, publications and
materials, in printed or digital
formats.
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o Mutual technical assistance and

technology information exchanges.
• It will allow India to use the US’s
advanced geospatial intelligence and
enhance the accuracy of automated
systems and weapons like missiles
and armed drones.
• It is signed in 2020
Logistics Exchange • LEMOA gives access, to both
Memorandum of countries, to designated military
Agreement (LEMOA) facilities on either side for the
purpose of refuelling and
replenishment.
• The agreement will primarily cover
four areas — port calls, joint
exercises, training and
Humanitarian Assistance and
Disaster Relief. Any other
requirement has to be agreed upon
by both sides on a case-by-case
basis.
• There will be no basing of the U.S.
troops or assets on Indian soil. This
is purely a logistical agreement.
o India can access the string of U.S.
facilities across the globe for
logistical support and the U.S.,
which operates in a big way in Asia-
Pacific, will benefit from Indian
facilities.
• It was signed in 2016.
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Communications • It is an India-specific version of

Compatibility and Communications and Information
Security Agreement Security Memorandum of Agreement
(COMCASA) (CISMOA).
• It allows both sides to operate on
the same communication systems,
enabling an “interoperable”
environment for militaries.
• It provides the legal framework for
the US to part with its sensitive
communication equipment and
codes to enable transfer of realtime
operational information.
• It allows India to procure transfer
specialised equipment for encrypted
communications for US origin
military platforms like the C-17, C
130 and P-8Is.
• It was signed in 2018 and valid for
10 years.
General Security of • It facilitates opportunities for
Military Information greater intelligence sharing between
Agreement (GSOMIA) India and US. Recently, Industrial
Security Annex (ISA) to GSOMIA was
concluded between both countries.
• ISA provides a framework for
exchange and protection of classified
military information between U.S.
and Indian defence industries.
• Under GSOMIA, such information
is exchanged between Government
authorities.
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• It was signed in 2002.

Significance of foundational Agreement

• Affirmation of the mutual trust: Signing of Foundational agreement is an
affirmation of the mutual trust between the two militaries, and its application
will enhance the trust.
• Facilitate Better Defence Ties: Signing of these agreements is mandatory,
under American law, for the US to enter military alliances related to the export
of sensitive equipment.
• Strengthen India’s conventional offensive and defensive capacity: It gives
India access to detailed, sensitive intelligence that can enable to be more
accurate in targeting terrorists or rival militaries, and to better monitor the
location of the enemy either just across the border or in faraway seas.
• To counter China: These agreements may empower India to check Chinese
expansionism which threatens a large number of countries in its
neighbourhood and beyond, and which has been challenging several
established norms and aspects of international relations.
o Close defence and military cooperation between India and US as well
as with other like-minded nations in the future helps to counter
Chinese aggression in the region
• Strategic Convergence in the Indo-Pacific: A close partnership between the
United States and India is central to a free, open, inclusive, peaceful, and
prosperous Indo-Pacific region.
• Enhance humanitarian assistance: Assist in building worldwide capacity to
conduct successful peacekeeping operations, with a focus on enabling other
countries to field trained, capable forces for these operations;

Issues with these Agreement

• Russia Factor: US wants India to move away from Russian equipment and
platforms, as it feels this may expose its technology and information to
Moscow.
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• Boost U.S. arms sales to India: Critics express that agreements are intended
to boost U.S. arms sales to India to the benefit of the U.S. economy and
American workers.
• India’s policy of Strategic Autonomy: critics express that the agreements
imperil India’s long-held foreign policy of strategic autonomy by paving the
way for U.S. bases or ports in Indian territories, or unduly binding India to
U.S. systems and procedures.
• Sharing of critical data: Implementation of the COMCASA would involve
data-sharing that could reveal the location of Indian military assets to
Pakistan or other third parties.
• More favourable to US: The agreements, particularly the LEMOA, primarily
benefit the United States since Indian ships are less likely to refuel and
resupply at U.S. ports.

Conclusion
Since the Civil Nuclear Agreement of 2005, the India-U.S. defence cooperation
has been advancing at a rapid pace. The U.S. has relaxed restrictions on
technology trade in India’s favour considerably, and India is designated a
‘Major Defence Partner’. Conclusion of foundational agreements would further
deepen defence cooperation and definitely placed India in a strategically
advantageous position. However, India’s policy maker must ensure that these
agreements would not affect India’s strategic autonomy.
 25 BPSC MAINS

4. WHO and Its role during COVID-19

About World Health Organisation (WHO)

• Origins- The WHO was established in 1948 as a United Nations (UN)
specialised agency.
o The potential for spread of diseases due to globalisation, mobility and
urbanisation called for the need to create a global institution to expand
international health cooperation.
• Structure- The WHO has a three-tiered structure, comprising:
o The World Health Assembly- It is the supreme decision-making body
comprising all member states to determine policy direction.
o The Executive Board- It comprises of technical experts to oversee the
implementation of WHA’s decisions.
o The Secretariat- It is headed by the Director General and functions as
WHO’s administrative and technical organ with the overall
responsibility for implementing its activities.
• Funding- The WHO is funded through a system of assessed and voluntary
contributions.
o Assessed contributions are paid by all member states, and are
calculated on the basis of a country’s gross national product and
population.
o Voluntary contributions are amounts voluntarily paid by other UN
organisations, private companies, individuals, NGOs as well as member
states.
✓ The US was the WHO’s largest contributor and paid a total of
$893 million in both assessed and voluntary contributions in
2019.
• Authority to challenge governments- The IHR grants WHO the authority to
take actions that can challenge how governments exercise sovereignty in the
following ways
 26 BPSC MAINS

o WHO can collect disease-event information from non-governmental

sources, seek verification from governments about such information,
and, if necessary, share the information with other states.
o WHO director-general can declare a public health emergency of
international concern, even if the state experiencing the outbreak
objects.
o WHO has the authority to reinforce the requirement that a state party
shall provide the scientific and public health justification for trade or
travel restrictions that do not conform to WHO recommendations or
accepted disease-control measures.
o The IHR requires states parties to protect human rights when
managing disease events, which are led by the WHO.

Criticisms of WHO during COVID-19

• Lack of preparedness- The WHO already had access to data and years of
subsequent research about the SARS outbreak.
o In 2015, the coronavirus family of diseases was selected to be
included in a list of priorities requiring urgent research and
development.
▪ This assessment was reiterated in WHO’s 2018 annual review
of prioritised diseases.
• Delay in declaration- WHO has been criticised for its unexplained delay in
declaring COVID 19 as a ‘public health emergency of international concern’
(PHEIC).
o It had declared when the confirmed cases had increased tenfold
across 18 countries.
o WHO also delayed its declaration as a ‘pandemic, especially when the
COVID 19 was exhibiting the characteristics of a pandemic, i.e.
spreading rapidly around the world.
• Indecision in visiting China- The WHO did show any urgency in sending an
investigation team to China. A joint WHO-Chinese team went to Wuhan only
in mid-February.
 27 BPSC MAINS

• Exclusion of Taiwan- Since China acceded to the UN in 1971, it has

periodically blocked Taiwan’s WHO membership on the grounds that the
democratically governed island is part of China.
• Delay in acknowledging human-to-human transmission of the virus-
especially, after the first case was announced outside China.
o This is despite the fact that Taiwan had warned the WHO of this as
early as end of December, 2019.
• Not endorsing the use of trade and travel restrictions- The explosion of travel
restrictions that countries implemented to counter COVID-19 prompted
arguments that these restrictions violated the IHR, violations that the WHO
did not probe despite having authority to do so.
o Rather, the WHO urged the international community to not spread
fear and stigma by imposing travel restrictions.
• Alleged lack of independence- It has been alleged that the current WHO
Director General, who won his election with the backing of China has been
generous in his approach towards China.
o Appreciation of China’s swift response- WHO DG praised the Chinese
leadership for “setting a new standard for outbreak control” and its
“openness to sharing information”, especially when there is sufficient
evidence of concealment of the outbreak.

Arguments against the criticism of WHO during COVID-19

• Lack of capacity with WHO-As presented in the box, the WHO lacks
functional capabilities to challenge the governments politically.
• Alleged geopolitics over the issues- From the beginning itself, the countries
framed the epidemic in geopolitical terms and blamed China for the tragedy.
o In fact, the WHO was largely unable to keep United States and
European countries following its advice.
o Countries like South Korea and Germany who were active were able
to contain the spread.
• Development of vaccines- WHO’s efforts to advance development of
coronavirus vaccines and therapeutics have been appreciated.
 28 BPSC MAINS

• Countering misinformation- The WHO’s efforts in sharing of information and

its attempts to counter online misinformation and disinformation have
earned widespread praise.

Way Forward
• The criticism being faced by the WHO has done great damage to its global
reputation and standing.
o While the politicisation of the WHO remains a serious concern, it also
presents an opportunity to rethink the underpinnings of the broader
global governance architecture.
• The WHO reforms announced few months back should be implemented on
a war footing.
o Its donor dependency and weakened capacity should be addressed
effectively, to meet its triple billion targets in future.
• India can also contribute towards providing stability and trust to the
working of the organisation.

Issues with WHO

• Lack of defined functions- There is no single document which
comprehensively describes its responsibilities, obligations and powers with
respect to infectious diseases.
o A collection of documents, such as treaties, regulations like International
Health Regulations (IHR), WHA resolutions and operational practices
manifest WHO’s powers
• Recommendatory powers- The WHO’s authority is recommendatory in
nature and include proposing conventions, agreements, public health
practices and international nomenclatures.
o Unlike bodies like World Trade Organisation (WTO), it has no ability
to bind or sanction its members.
• Capacity to work in an outbreak- The organisation’s responsibilities during
a pandemic include surveillance, monitoring and evaluation, developing
guidance for member states.
 29 BPSC MAINS

o Its coordinating authority and capacity are weak and it merely works
as a technical organisation.
o It relies on bureaucracy and regional offices for control.
o It lacks the ability to direct an international response to a life-
threatening epidemic.
• Limited funding- WHO’s annual operating budget, about $2bn in 2019, is
smaller than that of many university hospitals, and diversified among an
array of public health and research projects.
 30 BPSC MAINS

5. US-China trade war and Its impact

The US and China trade is heavily skewed in favour of the China. In 2018,
the US had a trade deficit of $419.2 billion with China. In August, 2017, US
President Trump asked US Trade Representative to begin an investigation for
possible tariff hikes on Chinese goods.

It promptly started in January 2018, when Trump imposed a 30 per cent

tariff on foreign solar panels and 20 per cent tariff on the first 1.2 million
washing machines imported during the year. Both the moves primarily hurt
Chinese interests. US imposed heavy tariffs on imported steel and aluminium
items from China and it responded by imposing tit-for-tat tariffs on billions of
dollars worth of American imports.

The dispute escalated in to trade war in which US demanded China to reduce

US $375 billion trade deficit, and introduce “verifiable me asures” for
protection of Intellectual Property Rights, technology transfer, and more
access to American goods in Chinese markets.

Made in China 2025 also drew the ire of US because of its focus on making
China the dominant player in emerging fields of technology and
manufacturing, as well as its support for domestic firms with subsidies.

Global Impact of trade war

Lower world GDP: In a report earlier this year, the IMF noted that the US-
China trade tension was one factor that contributed to a “significantly
weakened global expansion” late last year, as it cut its global growth forecast
for 2019. According to a Bloomberg Economics report, uncertainty over trade
could lower world gross domestic product by 0.6 per cent in 2021 compared
to a no-trade-war scenario. If US and China continue to raise tariff and non-
tariff barriers, the global economic growth rate will fall to a seven-year low of
2.8% and worse still, the world economy could enter a recession in near
future.
 31 BPSC MAINS

Impact on currencies: These tensions can shift “tariff war" to a potential

“currency war". It leads to greater risks not only for those trading in US and
Chinese currencies or their stocks (over 60% of global financial investors), but
also for capital flows between emerging markets that tend to peg the value of
their own currencies to the dollar.

Coupling with BREXIT: Ongoing trade tensions between the US and China,
and the uncertainty due to Brexit have impacted European countries exports
badly especially on Germany which is the world’s third biggest trader after the
US and China.

Restructuring of Global value chains (GVCs): Machinery, electronics, and

computer equipment account for 60% of US imports from China. These are
made via GVCs that share production across a dozen or so countries. Less
demand from the US would mean China buying fewer components and sub-
assembly units from Japan, South Korea, Vietnam and Thailand. This will
shrink trade and weaken the GVC model.

Gain for textile industries in South Asia: Textile imports of US have shifted
from China towards other countries in South Asia with Vietnam and
Bangladesh witnessing larger increase in exports to USA. Alternatively, cotton
imports from USA to China have declined for the first half of 2019 and imports
from other countries including Brazil, Australia and India have increased.

Weakened WTO: The US steel and aluminium measures in March 2018 on

frivolous grounds of national security was a violation of the WTO spirit. The
US has no interest in pursuing the WTO’s agreed Doha agenda. By not
allowing the appointment of an Appellate Body judges, it is strangulating the
WTO’s dispute panel.

Implications for India

In comparison with US-China trade, India’s total trade with the US was just
$ 142 billion in 2018. The size of India-US trade is less than one fifth of US-
 32 BPSC MAINS

China trade. However, this could change to India’s advantage as US China

trade war has opened new avenues for other countries.

Positive:

Growth in exports: As per a UNCTAD report, India is likely to increase its

exports by as much as $11 billion in the long term due to the fall out between
the US and China. The increase would come in items that are currently being
imported from China where US companies do not have the competitive edge
to match India. Indian exports would gain in China for the goods that it today
imports from the US. India’s exports to China have grown much faster than
to US post the trade war between the two largest economies.

Benefit to some domestic companies: India has benefitted from US-China

trade war by exporting more to China like plastic, cotton, inorganic chemicals
and fish. India has a revealed comparative

advantage in some of these commodities. Indian exporters can take

advantages in three distinct sectors: garments, information communication
and technology (ICT) and to some extent in automotive components.

Increased FDI: There could be increased investment and capital flow between
India and the US and India and China as China and the US seek to
disentangle themselves. Chinese companies have in recent times made a
beeline to invest in India especially in the area of tele communications.

Benefit to Steel sector: The US is the world’s biggest steel importing country
and India’s has been a bright spot in the global steel industry for long —
growing steadily year on year without a break, and the potential for future
growth is also very high.
Negative:

Value of the Rupee: Due to weakening of the US dollar, which automatically

creates a negative impact on the trade deficit of India, causing a chain reaction
of sorts.
 33 BPSC MAINS

Indian stock markets: Amid concerns over the global trade war, key indices
in the Indian share market dropped due to the cautious approach of the
investors.

India-US duties: As the United States of America imposed duties on steel and
aluminium, India now has to pay approximately $241 million worth of tax to
the US. As far as the manufacturing industry is concerned, the additional
duty imposed could have a detrimental impact, as the cost of production will
go up due to the rise in the price of raw materials.

In the wake of US-China trade war, the opportunities

and challenges have been created, India needs to double -down on engaging
with US and sorting out things on the trade front. Also, the right step has
been taken in which India is keen to increase its market share in both
countries and has carried out a detailed analysis identifying items where there
is potential to increase exports.
 34 BPSC MAINS

6. Citizenship Amendment Act, NRC, NPR

Citizenship Amendment Act (CAA), 2019 was recently enacted by the

Parliament that seeks to amend the Citizenship Act, 1955.

The Citizenship Act, 1955

• It provides for acquisition of citizenship by birth, descent, registration,
naturalization and by incorporation of territory into India.
• The Act prohibits illegal migrants from acquiring Indian citizenship. It
defines an illegal migrant as a foreigner: (i) who enters India without a valid
passport or travel documents, or (ii) stays beyond the permitted time.
• It regulates registration of Overseas Citizen of India Cardholders (OCIs), and
their rights.

Background
• Article 11 of Indian constitution empowers Parliament to make any provision
with respect to the acquisition and termination of citizenship and all other
matters relating to citizenship.
• Citizenship (Amendment) Act, 2003 provided that ‘illegal migrants’ will not
be eligible to apply for citizenship by either registration or naturalisation.
• Section 2(1)(b) of Citizenship Act, 1955 defines illegal migrant as a foreigner
who:
o enters the country without valid travel documents, like a passport
and visa or
o enters with valid documents, but stays beyond the permitted time
period.
• However, considering the plight of minorities in neighbouring countries,
Citizenship Amendment Bill was introduced in Parliament in 2016 but the bill
got lapsed.
 35 BPSC MAINS

Key provisions of the Citizenship Amendment Act (CAA), 2019

• The amendment provides that illegal migrants who fulfil four conditions will
not be treated as illegal migrants under the Act. The conditions are:
o they are Hindus, Sikhs, Buddhists, Jains, Parsis or Christians
o they are from Afghanistan, Bangladesh or Pakistan
o they entered India on or before December 31, 2014they are not in
certain tribal areas of Assam, Meghalaya, Mizoram, or Tripura included
in the Sixth Schedule to the Constitution, or areas under the “Inner
Line” permit, i.e., Arunachal Pradesh, Mizoram, and Nagaland.
✓ These tribal areas include Karbi Anglong (in Assam), Garo Hills
(in Meghalaya), Chakma District (in Mizoram), and Tripura Tribal
Areas District.
• All legal proceedings against above category of migrants in respect of their
illegal migration or citizenship will be closed.
• The period of naturalisation has been reduced from 11 years to 5 years for
above category of migrants.
• Grounds for cancelling OCI registration: The amendment provides that the
central government may cancel registration of OCIs, if the OCI has violated
Citizenship Act or any other law so notified by the central government. Also,
the cardholder has to be given an opportunity to be heard.
o The Act provides that the central government may cancel registration
of OCIs on five grounds including registration through fraud, showing
disaffection to the Constitution, etc.

Arguments in favour of the Amendment Act

• Religious persecution- Nehru-Liaquat pact, also known as the Delhi Pact,
signed in 1950, sought to provide certain safeguards and rights to religious
minorities like unrecognition of forced conversions and returning of abducted
women and looted property etc.
o However, Afghanistan, Pakistan and Bangladesh have a state religion
with discriminatory blasphemy laws, religious violence and forced
 36 BPSC MAINS

conversions which has resulted in religious persecution of minority

groups.
o For instance, in 1951, the Non-Muslim minorities population 23.20%
in Bangladesh which is around 9.6% in 2011.
• Illegal immigration from neighboring countries has been a contentious issue
for decades. E.g. During the 6-year long agitation that started in 1979 in
Assam, the protestors demanded the identification and deportation of all
illegal foreigners – predominantly Bangladeshi immigrants. This act would
differentiate between illegal immigrants and persecuted communities seeking
refuge.
Arguments against the Amendment Act
• Classification of countries: It is not clear why migrants from these countries
are differentiated from migrants from other neighboring countries such as Sri
Lanka (Buddhism is the state religion) and Myanmar (primacy to Buddhism).
o Sri Lanka has had a history of persecution of a linguistic minority in
the country, the Tamil Eelams.
o Myanmar has had a history of persecution of a religious minority, the
Rohingya Muslims.
• Classification of minority communities: The amendment simply mentions
the 6 ‘minority communities’ and there is no mention of ‘persecuted
minorities’ or ‘religious persecution.’ So, ideally it should not differentiate
between religious persecution and political persecution. Moreover, exclusion
of Muslims, Jews and Atheists from CAA is said to be violation of Article 14 of
the constitution. For example:
o Persecution of co-religionists like Shias, Hazaras or Ahmadiyya
Muslims in Pakistan (who are considered non-Muslims in that country).
o The murder of atheists in Bangladesh has also been noticed.
• Classification based on date of entry: CAA also offers differential treatment
to migrants based on their date of entry into India, i.e., whether they entered
India before or after December 31, 2014.
• Against the letter and spirit of Assam Accord: The Assam accord put the
date of detection and deportation of foreigners as March 25 1971, whereas,
 37 BPSC MAINS

for other states, it was 1951. CAA extends the cut-off date for NRC from 25th
March 1971 to 31st Dec 2014. CAA extends the cut-off date for NRC from
25th March 1971 to 31st Dec 2014.
• Cancellation of OCI registration: giving the central government the power to
prescribe the list of laws whose violation result in cancellation of OCI
registration, may amount to an excessive delegation of powers by the
legislature.
• Implication on external relations:
o The amendment implies that religious persecution of the Hindu
minority in Bangladesh as one of the reasons for the amendment and
also implies that Muslim migrants from Bangladesh will be “thrown
out”. This invites trouble from Bangladesh with bearing on bilateral
issues.
o India’s strong commitment to civic nationalism and religious
pluralism, have been important pillars on which India’s strategic
partnerships with the US and the West have been built, which may be
imperiled.

Conclusion
• Indian democracy is based on the concept of welfare and secular state and
a progressive constitution where Article 21 provides the Right of a dignified
life. So, it becomes a moral obligation of the state to allay the fears of minority
communities, if any. Hence, the classification done in CAA on the basis of
country of origin and religious minorities can be made more inclusive.
• Moreover, India should enact a refugee law wherein the right to live a life
without fear or confinement can be protected. If the fear is that people may
seek permanent asylum, the UNHCR can work with them officially for their
voluntary repatriation, and without rendering long-term refugees ineligible for
applying for citizenship.
 38 BPSC MAINS

NPR (National Population Register)

Government has decided to prepare a National Population Register (NPR) to
lay the foundation for rolling out a citizens' register across the country.

About National Population Register

• A group of ministers created after the Kargil war recommended compulsory
registration of all residents in India, to facilitate the preparation of a national
register of citizens and curb illegal migration.
• The NPR is a list of “usual residents of the country”.
o According to the Ministry of Home Affairs, a “usual resident of the
country” is one who has been residing in a local area for at least the
last six months, or intends to stay in a particular location for the next
six months.
• The NPR is being prepared under provisions of the Citizenship Act 1955 and
the Citizenship (Registration of Citizens and issue of National Identity Cards)
Rules, 2003.
o The Citizenship Act 1955 was amended in 2004 by inserting Section
14A which provides for the following:-
✓ The Central Government may compulsorily register every
citizen of India and issue National Identity Card.
✓ The Central Government may maintain a National Register of
Indian Citizens (NRIC) and for that purpose establish a National
Registration Authority.
✓ Out of the universal data set of residents, the subset of citizens
would be derived after due verification of the citizenship status.
Therefore, it is also compulsory for all usual residents to register
under the NPR.
• NPR will be conducted at the local, sub-district, district, state and national
levels.
• It will be conducted in conjunction with the first phase of the Census 2021,
by the Office of the Registrar General of India (RGI) under the Home Ministry.
 39 BPSC MAINS

o Only Assam will not be included, given the recently completed NRC.
• There is also a proposal to issue Resident Identity Cards to all usual
residents in the NPR of 18 years of age.

Benefit of NPR
• Database of residents: It will help to create a comprehensive identity
database of its residents with relevant demographic details and also
streamline data of residents across various platforms.
• Better implementation: It will help the government formulate its policies
better and also aid national security.
o Ministry of Home Affairs has argued that the NPR would be more
suited for distributing subsidies than the UID, as the NPR has data
linking each individual to a household.
• Remove any errors: For e.g. It is common to find different date of birth of a
person on different government documents. NPR will help eliminate that.
• Avoid duplication: With NPR data, residents will not have to furnish various
proofs of age, address and other details in official work. It would also eliminate
duplication in voter lists, government insists.

Issues regarding NPR

• Privacy issue: Even as issues of privacy associated with Aadhaar continue
to be debated in the country, the NPR is on a drive to collect detailed data on
residents of India. There is as yet no clarity on the mechanism for protection
of this vast amount of data.
• Legality of sharing data: Both the legality of the UID and NPR collecting data
and biometrics has been questioned. For example, it has been pointed out
that the collection of biometric information through the NPR, is beyond the
scope of subordinate legislation.
• National security: It can raise national security threats, given the size of the
databases that will be created, the centralized nature of the databases, the
sensitive nature of the information held in the databases, and the involvement
of international agencies.
 40 BPSC MAINS

• Issues similar to NRC: NPR will be the base for a nationwide National
Register of Citizens and will be similar to the list of citizens of Assam. During
the NRC exercise, there were several instances where some members of a
family featured in the draft list while the others did not.
• Duplication of projects: It is unclear why the government would feel the need
to subject India’s citizenry to another identification drive when over 90 per
cent of them are covered by Aadhaar, which was an elaborate, time-
consuming exercise.
o With these multiple projects like Aadhar, NRC, NPR, census etc it has
created confusion regarding the idea of citizenship in the country.
• Uncounted people: The census does not cover the entire population, which
leaves unanswered the questions of the status of those citizens who are not
visited by a census officer.
o It also leaves ambiguity over migrant labour, who may well be citizens
but would not qualify as “usual residents”.

Conclusion
There needs to clarity over the privacy concerns surrounding the amount of
data being collected in NPR and it also needs to learn lesson from such similar
exercise in Assam i.e. NRC. Then only it will be able to serve as the mother
database to verify citizenship if a nationwide NRC is carried out later.
 41 BPSC MAINS

Nationwide NRC (National Register of Citizens)

Government of India has signalled its intent of carrying out a nationwide

National Register of Citizens (NRC).
• The National Register of Citizens is a list of all the legal citizens of the
country, with necessary documents.
• Earlier, following the Supreme Court’s order, the Government conducted the
NRC updating exercise in Assam and as a result over 19 lakh applicants failed
to make it to the NRC list.

Rationale behind the nationwide NRC

• Ascertaining the identity of citizens: NRC will provide a much -needed

perspective on the extent of illegal migration. The fear that illegal immigrants
will change the demography of the country and influence the politics of
different states will also be done away with.
• Demand from some stakeholders- such as the NGOs like the Assam Public
Works (APW), which had petitioned the Supreme Court for upgrading the
previous NRC.
• Statutory obligation of the state- as the Section 14A in the Citizenship Act
of 1955 provides in sub-section (1) that “The Central Government may
compulsorily register every citizen of India and issue national identity card to
him”.
o The procedure to prepare and maintain National Register of Indian
Citizens (NRIC) is specified in the Citizenship (Registration of Citizens
and Issue of National Identity Cards) Rules, 2003.
• Move towards solving the immigration issue- as it is expected to deter future
migrants from entering the country.
o It can also aid the agencies in effective border management, especially
with Nepal and Bangladesh.
 42 BPSC MAINS

Issues with nationwide NRC

• Existence of deportation provisions- as immigrants are subject to laws like

the Foreigners Act, 1946 and Passport (Entry into India) Act, 1920 and
tribunals are already empowered to detect, detain and deport them.
• Legal infirmities- The last time the Central government tried to make an
identity enrolment mandatory was the Aadhaar project and this was struck
down as excessive (except in limited and justifiable cases). The NRIC scheme,
as proposed, would thus be directly in violation of the K.S. Puttaswamy
judgment on right to privacy.
• Not learning from Assam’s experience considering the complications that
have cropped up in the previous NRC such as
o No clarity over previous results- on what the end results mean for the
19 lakh plus people who find them outside the NRC, potentially
stateless and at risk of “deportation” to Bangladesh, which refuses to
acknowledge the same.
o Wastage of public resources- as many critics are questioning the
expenditure of the taxpayers’ money which were spent on the previous
NRC.
o Lack of capacity- Assam’s first detention centre is being constructed,
but it will only house 3,000 people against the need for 19 lakh people
excluded from the final NRC. Further, media reports have been stating
that these detention camps are infamous for their inhumane living
conditions.
o Protests- Many sections of Assam, like Bodoland students, have been
protesting against the repetition of NRC in Assam.
• Link with CAA: There are fears that such an exercise could end up targeting
minorities in the country. Also, to implement CAA, citizens and illegal
migrants have to be identified. So, a NRC is seen as necessary first step for
CAA.
• Implementation anomalies- as the NRC will take a gigantic toll on people’s
time, money and productivity, especially of the poor and illiterate sections.
 43 BPSC MAINS

o Under the Foreigners Act of 1946, the burden of proving whether an

individual is a citizen or not, lies upon the individual applicant and not
on the state. Also, the details of how such an exercise will be carried
out are not yet known.
o Further, there is poor documentary culture in India and here around
125 crore Indians will have to produce documentary proof of their
ancestors up to a certain date to create a legacy tree.
• No specific policy in ascertaining the fate of people: The government has not
prepared a post NRC implementation plan, as the possibility of deportation of
illegal migrants to Bangladesh is bleak as the people excluded from the list
should be proven citizens of Bangladesh, and that will require cooperation
from that country.
• Allegations of human rights violations- as at a US Congress hearing on
human rights in South Asia, not just Kashmir issue was raised but Assam’s
NRC also came up.
• Issue of Statelessness: There are apprehensions that India will end up
creating the newest cohort of stateless people, on the lines of Rohingyas who
fled Myanmar for Bangladesh.

Way Forward

• Set a common Cut-off date to maximum two generations - which will ease
up the process for citizens to show documentary proofs.
o The problem in Assam was the cutoff year of 1971, which made it near
impossible for many to get documents that went so far back in the past.
o The NRC should attempt to prevent further arrivals of illegal migrants.
Past arrivals cannot easily be wished away without causing needless
human misery and also disrupting micro-economies in the states where
the illegals reside and work.
• Bring a fair process- There were allegations that some sections had
submitted false documents during Assam’s NRC exercise. A nationwide NRC
is expected to learn from this.
 44 BPSC MAINS

• Tackle issue of illegal migration comprehensively- by focusing on

comprehensive border management, assistance from international
organisations such as United Nations High Commissioner for Refugees
(UNHCR) among others.
o Government of India can work with other governments to get
authenticated copies of their own voter and citizenship records. This
can be done under a large SAARC convention too.
• Maximize use of technology- such as utilization of digital lockers. Citizens
should be told get all their documents authenticated in digital lockers, so all
they would need to do is provide access to this documentation when the NRC
happens.
o By appropriately using artificial intelligence and data analytics,
governments can match residents suspected of being immigrants fairly
easily using multiple databases.
 45 BPSC MAINS

7. United Nations- 75th anniversary on

October 24, 2020
United Nations (UN) has completed 75 years in 2020.

Background of UN

• United Nations is an international organization founded in 1945 after the

Second World War. It is currently made up of 193 Member States.
• The mission and work of the United Nations are guided by the purposes and
principles contained in its founding Charter.
• The UN has 4 main objectives:
o To keep peace throughout the world;
o To develop friendly relations among nations;
o To help nations work together to improve the lives of poor people, to
conquer hunger, disease and illiteracy, and to encourage respect for
each other’s rights and freedoms;
o To be a centre for harmonizing the actions of nations to achieve these
goals
• The main organs of the UN are the General Assembly, the Security Council,
the Economic and Social Council, the Trusteeship Council, the International
Court of Justice, and the UN Secretariat.

Achievements of UN

• Peace and Security

o Maintaining Peace and Security: By sending peacekeeping and
observer missions to the world’s trouble spots, UN has been able to
restore calm, allowing many countries to recover from conflict.
o Promoting Arms Control: Apart from signing of treaty on Non-
Proliferation of Nuclear Weapons (NPT), UN treaties are the legal
 46 BPSC MAINS

backbone of disarmament efforts including, Chemical Weapons

Convention, biological weapons convention, etc.
• Promoting economic and social development:
o United Nations Development Program provides economic assistance
through expert advice, training, and limited equipment to developing
countries.
o UN played a significant role in improving agricultural techniques and
increasing crop yields in Asia, Africa and South America. UN has helped
developing nations through the World Bank, International Monetary
Fund (IMF) in funding projects, promoting international cooperation on
monetary issues etc.
o U.N. has made progress with its Millennium Development Goals,
which was followed by 17 Sustainable Development Goals to enhance
social, environmental and economic progress by 2030.
• Raising consciousness of Human Rights: The Human Rights Declaration of
1948 for the first time set out fundamental human rights to be universally
protected. Since then, various conventions, treaties were signed, including on
the rights of children, women, migrant workers, against torture, racism etc.
It has created a new framework for thinking about the relationship between
the individual, the state and the international system.
• Humanitarian Assistance and Health:
o World Food Programme (WFP) is fighting hunger worldwide, delivering
food assistance in emergencies and working with communities to
improve nutrition and build resilience.
o World Health Organization (WHO) and other UN affiliated groups have
eliminated smallpox and are actively pursuing a battle against AIDS,
tuberculosis, and malaria around the world.
• Environmental cooperation: UN Framework Convention on Climate Change
(UNFCCC) provides foundation for UN members to negotiate agreements to
reduce emissions that contribute to climate change and help countries adapt
to its effects. Montreal Protocol-1987 to protect ozone layer, finalizing of Paris
Climate Agreement are concrete achievements of UN.
 47 BPSC MAINS

• Establishing International Law: UN Convention on the Law of the Sea, which

has gained nearly universal acceptance, e International Court of Justice (ICJ)
has helped to settle international disputes involving territorial questions,
maritime boundaries, diplomatic relations, etc.

Limitations and failures of UN

• Threats to Peace and Security: UN could not prevent cold war, invasion of
Iraq, genocide of Rwanda. Also, UN has to failed to achieve peace in war torn
countries of Syria, Iraq, Afghanistan etc. Failure to finalize Comprehensive
Convention on International Terrorism shows inability of UN to come out of
power struggles of Nations.
• Failure of peacekeeping forces: During the Bosnian War, Peacekeeping
forces stationed in declared ‘safe area’ by the UN, failed to stop the massacre
of more than 8000 people by Bosnian Serb forces. Also, there have been
allegations of sexual exploitation and abuse and other misconduct by
peacekeepers.
• Neglect of International law: Despite NPT, UN could not prevent nuclear
proliferation programmes of countries like Israel, Iran, North Korea. Also,
UNSC permanent members like USA, China, Russia continue to disregard
international law.
• Failure to reform with changing Global order: UNSC, bodies such as IMF
and World Bank are dominated by West reflecting the division of power
internationally at the end of World War II. This undermines their credibility.
• Refugee crises: Despite treaties like 1951 Refugee Convention, and work of
the UN High Commission for Refugees, there is somewhere between 30 and
40 million refugees, living for decades outside their homelands. This is in
addition to more than 40 million people displaced within their own countries.
• Emerging challenges: In the wake of challenges like Climate change,
pandemics like COVID-19, threats by non-state actors like ISIS,
environmental refugees, UN of 1945 is not able to adequately respond. E.g.,
 48 BPSC MAINS

there is no international framework in place for responding to people who will

be displaced by rising seas and other effects of climate change.

Way forward

Despite having many short-comings, UN has played a crucial role making this
human society more civil, more peaceful & secure in comparison to time of its
origin. To remain relevant in changing prioritie s and emerging threats, UN
needs to be reformed. Some reform suggestions are:
• Accountability and Transparency: UN General secretary has proposed a new
management paradigm for the Secretariat and a United Nations that
empowers managers and staff, simplifies processes, increases transparency
and improves on the delivery of UN’s mandates.
• United Nations peace operations must be more people-centred; the speed,
capability and performance of uniformed personnel shall be improved, and
allegations of abuse shall be addressed by appropriate accountability
mechanisms.
• Urgent action on UNSC Reforms: Areas identified under UNSC reforms
include, Categories of membership, the question of the veto, regional
representation, size of an enlarged Council and its working methods and the
Security Council-General Assembly relationship.
• General Assembly Reforms: It is the UN's most democratic body, since it
includes all member states. Suggestions include, ending reliance on
consensus, which often results in weak resolutions; more attention to
implementation of its resolutions, so that they do not remain dead-letters of
noncompliance etc.
• Reforms in other UN organs like, Economic and Social Council: Reforms to
create a more effective Council for coordination, policy review, policy dialogue
and recommendations on issues of economic and social development.
 49 BPSC MAINS

8. QUAD
About Quad
• The Quad was formed in 2007 after four countries— US, India, Japan and
Australia — came together.
• However, it did not take off initially for a number of reasons, and was revived
in 2017 after almost a decade due to reasons such as growing convergence
among countries, increasing significance of Indo- Pacific region, rising threat
perceptions vis-à-vis China among others.
• It has since then emerged as a platform for diplomatic consultation and
coordination of participant countries who meet regularly at the working- and
ministerial levels to discuss mutual interests such as ensuring free, open and
inclusive Indo-Pacific and rules-based international order.
• The objective of the Quad remains advancing the security and the economic
interests of all countries having legitimate and vital interests.

Significance of Quad for India

• Countering China: The Quad provides a platform to India to seek
cooperation from likeminded countries on issues such as ensuring respect for
territorial integrity and sovereignty and peaceful resolution of disputes.
o It also demonstrates a united front to check belligerent activities of
China against India. This is especially crucial in present times as
relations between India and China have been worsening due to military
tensions at the Ladakh border.
• Framing post-COVID-19 international order: The pandemic has brought
about a profound transformation globally that has adversely affected global
supply chains, manufacturing activities and overall economies of countries.
o QUAD can help India to not only recover from the pandemic through
coordinated responses but can also secure its place in the new world
order.
• Convergence on other issues: India has converging interests with other Quad
members on a variety of important issues such as connectivity and
 50 BPSC MAINS

infrastructure development, security including counterterrorism; cyber and

maritime security; reform of multilateral institutions etc.
o Support from Quad members on these issues can go a long way for
India in realizing its strategic and economic goals.
• Supplementing India’s defense capabilities: Cooperation in the field of
defence among Quad members through joint patrols, exchange of strategic
information, etc. can help India overcome its imitations pertaining to finances,
naval capacity, military reconnaissance and technological and surveillance
capabilities.
• Fulfilling India’s Indo Pacific vision: All members of Quad have at some point
affirmed their commitment to ensure a free, open, inclusive Indo pacific region
following a common rules-based order, where all countries have equal access
to common spaces on sea and in the air.

Challenges

• Unclear agenda: The Quad lacks a coherent purpose, strategic objective and
an institutional framework. The countries have not even issued a joint
statement after meetings of the group, rather offering their own individual
readouts.
• China’s influence: China has strong economic ties with Quad members,
especially Australia, which can be used to coerce or influence nations in its
favour. This can turn out to be problematic for India.
o E.g. in response to Australia’s call for an independent international
inquiry over the origins of COVID- 19, China banned Australian beef
imports and imposed fresh tariffs on barley.
• Different capabilities and burden sharing: The four members of the Quad do
not have the same levels of financial resources, strategic awareness and
military capabilities in the Indian Ocean. This creates an imbalanced
partnership where burden falls unequally on partners.
 51 BPSC MAINS

• Possibility of antagonizing China: China perceives Quad as an Anti-China

coalition. Thus, India faces a risk of further deteriorating its relations with
China as its proceeds to increase its engagement with the Quad.
• Differences in priorities: Within the Indo-Pacific, Australia’s and Japan’s
priorities lie in the Pacific, while India is primarily focused in the Indian
Ocean.

Conclusion
QUAD members should collaborate and build a positive agenda that is built
around collective action in humanitarian assistance and disaster relief,
monitoring shipping for search and rescue or anti-piracy operations,
infrastructure assistance, connectivity initiatives etc. This will help address
inhibitions of China as well as be a step forward in building an institutional
framework.
Also cooperating with other regional partners, including ASEAN, East
African littoral nations, France, the UK, Pacific Island nations etc. and forums
such as the BIMSTEC, Indian Ocean Commission and the Indian Ocean Rim
Association can further strengthen the global position of Quad as a group.
52 BPSC MAINS

9. India-China Territorial dispute

Fig: Galwan Valley and surrounding areas

 53 BPSC MAINS

Fig: Border dispute between India and China

India and China are engaged in an eight-month standoff at LAC in Eastern

Ladakh. Both the countries are also engaged in military and diplomatic talks
to resolve the border dispute.

About the current standoff

• Chinese soldiers crossed the LAC around the Galwan River valley during
May 2020. There have been reports of Chinese soldiers having moved into
Indian territory at multiple locations in eastern Ladakh across the LAC
leading to high levels of tension between India and China. (see the map).
• In the events that followed at least 20 Indian soldiers were killed in a clash
with Chinese forces. It was the first deadly clash in the border area in at least
45 years.
 54 BPSC MAINS

• Alongside, both agreed to maintain dialogue and communication through

military and diplomatic channels. More than 8 rounds of talks were completed
and talks are still continuing. Both sides agreed to earnestly implement the
important understandings reached by the leaders of the two countries, not to
turn differences into disputes, and jointly safeguard peace and tranquillity in
the border area.
• However, border remains tense as reports say that China is upgrading and
installing radars swiftly along the LAC.

India- China Border Dispute

• The border between India and China is not clearly demarcated throughout
and there is no mutually agreed Line of Actual Control (LAC).
• The LAC is the demarcation that separates Indian-controlled territory from
Chinese-controlled territory. India considers the LAC to be 3,488 km long,
while the Chinese consider it to be only around 2,000 km.
• The LAC is divided into three sectors, viz. Western, Middle and Eastern.
o The boundary dispute in the Western Sector (Ladakh) pertains to the
Johnson Line proposed by the British in the 1860s that extended up to
the Kunlun Mountains and put Aksai Chin in the then princely state of
Jammu and Kashmir.
✓ India used the Johnson Line and claimed Aksai Chin as its
own. China, however, do not recognise it and instead accepts
McDonald Line which puts Aksai Chin under its control.
o In the Middle Sector (Himachal Pradesh and Uttarakhand), the
dispute is a minor one. Here LAC is the least controversial except for
the precise alignment to be followed in the Barahoti plains. India and
China have exchanged maps on which they broadly agree.
o The disputed boundary in the Eastern Sector (Arunachal Pradesh and
Sikkim) is over the McMahon Line (in Arunachal Pradesh) decided in
1914 in a meeting of Representatives of China, India, and Tibetin
Shimla.
 55 BPSC MAINS

✓ Though the Chinese representatives at the meeting initiated the

agreement, they subsequently refused to accept it. The Tawang
tract claimed by China was taken over by India in 1951.

Possible Reasons for Current standoff

It is always challenging trying to interpret China’s intentions. Various experts

cite different reasons some of which are as follow-
• Infrastructure Development along the LAC: In the past decade, India has
worked hard to strengthen its position on the border and its presence along
the LAC. E.g. Dalut Beg Oldie (DS-DBO road) in the northern tip of the
western sector greatly facilitates the lateral movement of Indian forces along
the western sector, reducing travel time by 40%.
• Shadow of Dokalam Episode: In a broader context, current confrontation is
also attributed to the 2017 China-India standoff at Doklam.
• Reorganisation of Jammu and Kashmir: China had earlier also protested
against the formation of new Union Territory of Ladakh and accused India of
trying to transform the LAC unilaterally.
• Global backlash against China for mishandling of COVID-19: India also
supported a Resolution at the World Health Assembly demanding a fair probe
into the origin of Coronavirus. Also, India has recently took over as the chair
of the WHO executive Board.
• Signs of new Chinese aggressiveness: along the Sino-Indian border is one of
the elements of China’s new adventures including
o the new security law Beijing has enacted to control Hong Kong,
o the enunciation of new administrative structures in the South China
Sea,
o the new language on Taiwanese reunification used during the May
2020 National People’s Congress plenary session in Beijing.
• India’s steps in Indo-Pacific: India’s participation in Quadrilateral Security
Dialogue (Quad), with strong maritime component, proposals like Supply
Chain Resilient initiative are seen by China as potential anti- Chinese alliance
 56 BPSC MAINS

of democracies aimed at containing it and checking its maritime rise in the

Indo-Pacific.

Border Dispute Settlement Mechanism

A series of five agreements signed between India and China to address

disputes arising over the LAC:
• 1993 Agreement on the Maintenance of Peace and Tranquility along the LAC
• 1996 Agreement on Confidence-Building Measures in the Military Field
Along the LAC
• 2005 Protocol on Modalities for the Implementation of Confidence-Building
Measures in the Military Field Along the LAC
• 2012 Agreement on the Establishment of a Working Mechanism for
Consultation and Coordination on India-China Border Affairs
• 2013 Border Defense Cooperation Agreement.

These agreements provide a modus operandi for diplomatic engagement at the

military and political levels, as well as a set of “status quo” commitments both
sides can return to in case of escalation .

Other Issues between India and China

• Chinese Initiatives: There are many Chinese initiatives that India is

suspicious about
o Belt and Road Initiative (BRI): India boycotted BRI on issues of
sovereignty (as China-Pakistan- Economic-Corridor – part of BRI,
passes through Pakistan Occupied Kashmir) and other concerns over
transparency, debt burden issues.
o Increasing presence in Indian Ocean: Chinese policy of building ports
and naval bases around India's maritime reaches such as Cocos Island
in Myanmar, Chittagong in Bangladesh, Hambantota (Sri Lanka),
 57 BPSC MAINS

Marao Atoll (Maldives) and Gwadar (Pakistan) is seen as Chinese

encirclement of India.
• River Water Dispute: China has been building dams (Jiexu, Zangmu and
Jiacha) in the upper reaches of the Brahmaputra which is called Tsangpo in
Tibet. India has objected to it but there has been no formal treaty over sharing
of the Brahmaputra water .
• Presence in South Asia: China has been increasing investments, enhancing
trade with countries in South Asia challenging India’s traditional position in
the neighborhood.
• Trade imbalance:
o China is India’s 2nd largest trading partner; whereas India is within
the top ten of China’s trading partner. A trade deficit of $51.11 billion
USD with China is a cause for concern for India because it signifies an
inability to compete with Chinese manufactured goods.
o A significant trade imbalance in favor of China, market access issues,
and security considerations have kept bilateral trade limited.
o China’s protectionist policies: They hinder the ability of Indian
companies to enter Chinese markets.
• China’s Support to Pakistan: Through investments (e.g. CPEC), and
supporting Pakistan on various issues like on Kashmir in UNSC, on terrorism,
on NSG etc. has emboldened Pakistan to continue its policy of asymmetric
warfare against India.

Way forward

• Reimagining the Spirit of Wuhan summit (2018 “informal summit” in

Wuhan): Wuhan was an attempt to articulate some norms that could serve as
a renewed set of guidelines to policymakers and bureaucracies in both
countries. It was built on five pillars.
o The “simultaneous emergence of India and China”, two major powers
with independent foreign policies is a reality.
 58 BPSC MAINS

o The relationship has regained importance and become “a positive

factor for stability” in the global power flux.
o Both sides recognize the “importance of respecting each other’s
sensitivities, concerns and aspirations”.
o Both leaderships would provide “strategic guidance to their respective
militaries” to manage the border peacefully.
o Both sides would strive for “greater consultation on all matters of
common interest”, which includes building a real “developmental
partnership”.
• Also, both sides agreed on working on key issues at Mamallapuram summit
(took place in 2019). Key outcomes include:
o Trade: Both countries agreed to establish a High-Level Economic and
Trade Dialogue mechanism with the objective of achieving enhanced
trade and commercial relations, and better balance the trade between
the two countries. It seeks to build a 'manufacturing partnership'
between India and China.
o Working together on international issues: Both leaders agreed that
there must be a rules-based and inclusive international order.
Moreover, both made a commitment to address global developmental
challenges, including climate change and meet the Sustainable
Development Goals.
o People to people contact: To celebrate the 70th year of diplomatic
relations between the two nations, the year 2020 will be designated as
Year of India- China Cultural and People to People Exchanges. To
celebrate the civilizational ties between the nations, it was decided to
form a 'Sister-state relationship' between Tamil Nadu and Fujian
Province. There is also a proposal to set up an academy to study these
links.
o Chennai connect: The two leaders also made a commitment to manage
differences in such a way that they would "not allow differences on any
issue to become disputes".
 59 BPSC MAINS

• Despite cautious optimism in its relationship with China, there is increasing

perception that actions of China are inimical to national interests.
o In this backdrop, India is also stepping up its strategic partnership
with like-minded Indo-Pacific partners like US, Japan, Australia etc.
Thus, we will see a far greater partnership between India and the United
States on issues of mutual interest—which is likely to have a
substantial China component.
o This is seen in India being vocal about recent QUAD meet. India will
also likely look to build greater cooperation through configurations
such as the “Quad plus” (expanding the existing grouping of Australia,
India, Japan, and the United States to include New Zealand, South
Korea, and Vietnam).

Conclusion
• The Wuhan and Mamallapuram summits acknowledge that India and China
are not 'adversaries' but two large economic powers open to a healthy
competition in a multipolar world. The big picture is that China could no more
afford to take India for granted and that 'checks and balances' were now
recognised as a legitimate instrument for preventing 'military' conflicts in the
post- Cold War era.
• Yet, the crisis unfolding along the LAC appears on one level to be a
continuation of the trends witnessed in foregoing years. But this time, there
is one important difference: unlike the discrete and geographically localized
confrontations of the past, the latest encounters are occurring at multiple
locations along the LAC which suggests a high degree of Chinese
premeditation and approval for its military’s activities from the very top.
• Also, even if the current tensions were to be resolved in the near term, India’s
security perceptions about China are forcing India to undertake some force
restructuring to maintain constant vigilance along the LAC, especially in the
western sector. Thus, India must be proactive to resist any Chinese
transgressions and at the same time utilise its diplomatic skills to tone down
the tensions.
 60 BPSC MAINS

India’s economic measures in the backdrop of standoff:

• The government has banned more than 100 Chinese apps from operating in
India including popular apps like Tiktok, PUBG etc. Given India has
approximately over 574 million Internet users, the ban is a big blow leading
to phenomenal loss of user base and data capital of the app. This could lead
to a potential loss of advertising revenue impacts app-makers.
• Government introduced changes in FDI rules which mandate "prior
approval" from the Centre for foreign investments from countries "that share
border with India". This move was widely considered a hedge against Chinese
takeover of domestic firms that are struggling because of the COVID-19
economic downturn.
• India has invoked stringent quality control norms to curb poor quality
Chinese imports.
• Union Minister for Road Transport and Highways has announced that
Chinese companies would not be allowed to take part in road projects.

Why a full-blown Sino-Indian war in unlikely?

• Nature of the dispute and the lack of ideological fundamentalism – India and
China do not see each other through an ideological lens. This is unlike how
United States and China see each other.
• Willingness for diplomatic engagement at the military and political levels –
Summit diplomacy is likely to return if the crisis escalates further as was the
case in 2015 Ladakh and 2017 Doklam crisis. Both sides have reiterated the
intention to de-escalate the current stand-off based on the already signed
agreements.
• Element of ambiguity surrounding the details of the stand-off - The ability
of both governments to manage national media, and the inscrutability of the
facts related to the dispute, aided efforts to manage domestic audience.
• Material costs of limited war for both parties far outweigh potential gains
61 BPSC MAINS

o For China, conflict on the border with India would diminish its ability
to meet security challenges in the South China Sea, thus making it
vulnerable to the United States, which Beijing considers its primary
security competitor. Additionally, reputational damages suffered due to
COVID-19 and pre existing fears surrounding China’s rise will all
temper Beijing’s pre-emptive use of military force.

o For India, the primary security challenge remains Pakistan-based

terrorist infiltration on the Kashmir border. More importantly, beyond
the protection of vital strategic points, the vast tracts of disputed land
along the LAC do not hold any important material resources such as
oil, precious mineral reserves. The benefits of territorial aggrandizement
are therefore, limited to deterrence value and the natural terrain offers
few advantages to offensive forces.
 62 BPSC MAINS

10. UN Security Council and its reform

India has been elected as a non-permanent member of the United Nations
Security Council with an overwhelming majority. It garnered 184 votes in the
General Assembly that consists of 193 members. The two-year term will begin
on 1 January 2021. This is the eighth time India has been elected a
nonpermanent member of the UNSC.

WHAT IS UNSC?

The Security Council, the United Nations’ principal crisis management body,
is empowered to impose binding obligations on the 193 UN member states to
maintain peace. Few major Roles:
• Ensuring international peace and security;
• Recommending that the General Assembly accept new members to the
United Nations;
• Approving any changes to its charter.
So, no changes to the UN charter or no new member can be admitted into
UN without the approval of UNSC (as these resolutions require agreement of
all the P5 members).

WHAT IS THE SECURITY COUNCIL’S STRUCTURE?

• It comprises of two kinds of members:

bers—China, France, Russia, the United Kingdom,
and the United States—collectively known as the P5. Any one of them can veto
a resolution.
-permanent members: Along with the five permanent members, the
Security Council of the United Nations has temporary members that hold their
seats on a rotating basis by geographic region. These members do not have
veto powers
 63 BPSC MAINS

• The reason behind Veto being limited to just five members has roots in WWII.
The United States and Soviet Union were the outright victors of the war, and,
along with the United Kingdom, they shaped the post war political order.

WHY UNSC REFORMS ARE NEEDED?

• Changing geopolitical situation: The Security Council’s membership and

working methods reflect a bygone era. Though geopolitics have changed
drastically, the UNSC has changed relatively little since 1945, when wartime
victors crafted a Charter in their interest and awarded “permanent” veto-
wielding Council seats for the Allied victors.
• Reforms Long Overdue: The UNSC was expanded only once in 1963 to add
4 non-permanent members to the Council. Although the overall membership
of the UN has increased from 113 to 193, there has been no change in the
composition of the UNSC.
• Inequitable economic and geographical representation: While Europe is
over-represented, Asia is underrepresented. Africa and South America have
no representation at all.
• Crisis of legitimacy and credibility: Stalled reform agenda and various issues
including its interventions in Libya and Syria in the name of responsibility
have put questions on the credibility of the institution.
• North-South Divide: The permanent UNSC membership portrays the big
North-South divide in the decision making of security measures. For instance,
there is no permanent member from Africa, despite the fact that 75% of its
work is focused on that continent.
• Emerging issues: Issues such as deepening economic interdependence,
worsening environmental degradation, transnational threats also call for
effective multilateral negotiations among the countries based on consensus.
Yet, all critical decisions of the UNSC are still being taken by the permanent
members of the Security Council.
 64 BPSC MAINS

AREAS OF UNSC REFORM

In the current circumstances, it has become crucial for the UNSC to reform
itself and uphold its legitimacy and representatives in the world. Reform of
the United Nations Security Council (UNSC) encompasses five key issues:
• Membership - For many years, some member-states have been advocating
expansion of the Security Council, arguing that adding new members will
remedy the democratic and representative deficit from which the Council
suffers. Disagreement on whether new members should be permanent or have
veto power has become a major obstacle to Security Council reform.
• Veto - The five permanent members of the Security Council (China, France,
Russia, United Kingdom, and United States) enjoy the privilege of veto power.
This power has been intensely controversial since the drafting of the UN
Charter in 1945. 75 years later, the debate on the existence and use of the
veto continues, reinvigorated by many cases of veto-threat as well as actual
veto use.
• Regional representation- The ongoing debate about Security Council reform
has mainly focused on the expansion of membership of the Council. The
rationale for membership expansion is to include emerging powers on the
Council. New single state members could exacerbate regional competition
rather than collaboration. Alternative model for Council reform that would
give permanent seats to regional organizations or blocs rather than individual
countries.
• Transparency and its working methods – The Security Council has taken
several steps to increase its efficiency and transparency in recent years. These
so-called "cluster 2" reforms do not require an amendment to the UN Charter,
and have therefore not stirred the same amount of controversy as the debate
on expansion of the Council has. The Security Council now holds more public
meetings and consults more frequently with external actors, including NGOs.
• Security Council-General Assembly relationship - Improving the quality of
the interactions between these two organs would provide the Council with
 65 BPSC MAINS

additional information and insights to inform its work. In turn, when the
member states in the General Assembly feel that they have been consulted
and that their views are heard on matters of international peace and security
that affect them, the transparency, accountability and legitimacy of the
Council are enhanced at a time when the Council is perceived to be struggling
to discharge its responsibilities on a number of issues.

WHY DOES INDIA WANT THE PERMANENT MEMBERSHIP?

India (or any other country for that matter) would want a permanent
membership to the UNSC for two reasons:
• First, the veto power, which India could use to defend its interests, say
against Pakistan (just like Russia did last year over the civil war in Ukraine).
• Second, the sheer prestige associated with permanent membership of a
multilateral forum. India’s elevation will also be an acknowledgment of its rise
as a global power, ready to play a key role in the council’s objectives of
international peace and security.

CASE FOR INDIA’S CLAIMS FOR PERMANENT POSITION AT UNSC

• Population: Around 1/6th of the global population.

• Democracy: With continuous and functional democratic experience, India is
best suited to provide these values into UNSC which is often criticized for
acting on behalf of few nations.
• Economy: India has become the fifth-largest economy in 2019, overtaking
the United Kingdom and France. The country ranks third when GDP is
compared in terms of purchasing power parity.
• Military: Responsible Nuclear power; 3rd largest military spender after USA
and China.
• Contributions to UN: India is the largest contributor to the UN Peacekeeping
Operations (UNPKO), with nearly 180,000 troops serving in 44 missions since
 66 BPSC MAINS

it was established. India is also among the highest financial contributors to

the UN, with the country making regular donations to several UN organs.
• Active participation in global affairs: India has not only participated but has
also taken lead roles in global matters like climate change, ozone depletion,
counter terrorism and rule based global order, etc.
• Member of G4 nations: Comprising Brazil, Germany, India, and Japan which
support each other's bids for permanent seats on the United Nations Security
Council.
Although the case for India’s membership is a sound one, but it is not an easy
and shredded with many challenges and factors put forth by various nations
and factors.
 67 BPSC MAINS

11. Indo-Nepal Territorial Dispute

Nepal unveiled a new political map that claimed strategically important land
Kalapani, Limpiyadhura and Lipulekh of Uttarakhand as part of its sovereign
territory.
• The map is in retaliation of Nepal’s objection to construction of road by India
from Dharchula to Lipulekh in Uttarakhand.
o This road connects close to the Line of Actual Control and opens a new
route for Kailash Mansarovar yatra via Lipulekh pass.
o This will help pilgrims to avoid dangerous high-altitude routes through
Sikkim and Nepal.
• India termed recent action by Nepal as a `unilateral act’ which is not based
on historical facts and evidence and also stated that these areas have always
been part of the Indian Territory.
 68 BPSC MAINS

• Also, after the reorganisation of Jammu and Kashmir, India had published
a new map in November 2019, which showed the region of Kalapani as part
of the Indian territory.
• The new map—and the consequent objection from Nepal—brought forth the
unresolved border disputes between the two countries.

India Nepal Border

• India and Nepal share an approximately an 1,800- kilometre long open
border running along West Bengal, Uttar Pradesh, Bihar and Sikkim.
• It was after the Peace and Friendship Treaty of 1950 that the two countries
encouraged a well identified and formally accepted “open border” between
them.
 An “open border” means that there is free and unrestricted movement
of people from either side.
 Open border has led to better social and trade connectivity between the
two countries leading to what is called ‘roti-beti ka rishta’.

About Indo-Nepal Territorial Dispute

 69 BPSC MAINS

• The disagreements between India and Nepal over the border dispute is over
the regions which includes Kalapani, Lipulekh, Limpiyadhura (all three in
Uttarakhand) and Susta (Bihar).
• Kalapani area is the largest territorial dispute between Nepal and India
consisting of at least 37,000 hectares of land in the High Himalayas.
o It is located in the easternmost corner of Uttarakhand’s Pithoragarh
district.
o It is a tri-junction between India, China and Nepal which is of strategic
significance in South Asian diplomacy.
• Susta in Bihar is on the banks of River Gandak. The changing course of
River Gandak often created issue between two countries.
• Nepal considers the 1816 Treaty of Sugauli (signed between Gurkha rulers
of Kathmandu and the EastIndia Company) as the only authentic document
on boundary delineation.
o Under the provisions of the Sugauli Treaty, Nepal lost Sikkim, Kumaon,
Garhwal and Western Terai (Flat) area. River Mechi became the eastern
border with India while the river Kali (called Mahakali in Nepal) was
demarcated as the north-western border.
✓ The Treaty of Sagauli also defined Gandak as the
international boundary between India and Nepal.
o Nepal considers the source of Kali river near Limpiyadhura, which is
higher in altitude than the rest of the river’s flow. Thus, all the three
areas Limpiyadhura, Lipulekh and Kalapani are considered to the east
of the river Kali.
• India on the other hand says the border begins at Kalapani which India says
is where the river begins.
o Kali originates in springs well below the Lipulekh pass, and the Sugauli
treaty does not demarcate the area north of these streams.
o Administrative and revenue records going back to the nineteenth
century show that Kalapani was on the Indian side.
 70 BPSC MAINS

o India has controlled this territory since 1950s and built other
infrastructure here before, besides conducting its administration and
deploying military forces up to the border pass with China.
o China in 2015 statement also recognized India’s sovereignty over the
area by agreeing to expand trade through the Lipulekh pass.

Issues in settling border dispute:

• China factor: The recent political map issued by the Nepal Government is
seen to be the influence of China due to the two Communist governments and
emerging close relations between them.
o China opening port facilities to Nepal and providing access to Trans
Himalayan Railway reduces Nepal’s dependency on India and reduces
the leverage that India has with the Nepal to settle the dispute.
• Interpretation of the boundary: The dispute is mainly because of the varying
interpretation of the origin of the river and its various tributaries that slice
through the mountains.
• Big Brotherly attitude: India’s Big Brotherly attitude towards Nepal has
created a sense of insecurity in the Nepalese government and its citizens and
any settlement would be seen as a weakness.
• Nepal internal politics: also pose problems as political parties flip from pro-
India positions to anti-India positions.

Conclusion
The Kalapani dispute must be resolved expeditiously and earnestly, to the
mutual satisfaction of both sides. A Joint Boundary Demarcation Committee
could be appointed by both the countries to scientifically study the Maps and
come to a conclusion diplomatically.
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Nepal and China growing Proximity: (Important for 66th BPSC Mains)

Reasons behind Nepal’s growing proximity with China

• Dependency on India- Because of its geographical constraints, Nepal has
found itself heavily reliant on India, never acquiring the comparative
advantage to increase exports.
• Negative perception about India- formed owing to following eventso Nepal’s
reservations towards India, due to the perceived treaty-based unequal
treatment, the open border has always been a crucial area of contention.
o India’s delay in implementation of various projects in Nepal more so vis-a-
vis China and its implementation of agreed-upon projects. E.g. Mahakali
agreement has remained without start for over two decades.
• Potential benefits from China- Nepal’s need for China far outweighs any
potential challenges in the Sino-Nepal relationship.
o Nepal views the Chinese railway as an opportunity to bring Chinese
pilgrims and tourists to Lumbini, the birthplace of the Buddha, and
to the popular valley of Pokhara.
o The Chinese railway can help enhance Nepal’s overall economic
capacity.
• Ideological basis- The communist parties in Nepal have favoured and
consistently protested against India. This time around the Nepali Congress
also favoured them.

Possible implications for India

• Erosion of buffer state- In the case of an India–China war, it is uncertain
whether Nepal will take India’s side as per the spirit of the 1950 treaty.
• Effect on other neighbours- including Bhutan, which also has faced similar
circumstances with both India and China.
• Impact on regional groupings- Growing China-Nepal relations may become
a hurdle in regional groupings like BIMSTEC in which Nepal holds a
significant voice.
 72 BPSC MAINS

Way Forward
• Nepal cannot dispense with its reliance on India. India is and will remain
vital for the country in many ways. However, India’s strategy to keep Nepal’s
engagement with China to a minimum is no longer a viable option.
• India must introduce new economic, developmental and infrastructure
initiatives with Nepal that will not only bring tangible benefits to Nepali
citizens but also address the vulnerabilities that will emerge in Nepal as the
country engages with China.
 73 BPSC MAINS

12. Atmanirbhar Bharat: Its need, Impact

and Criticism

Atmanirbhar Bharat Abhiyan (Self-reliant India Mission) is a campaign

launched by the Central Government of India which included an Rs.20 lakh
crore economic stimulus package and a number of reform proposals. As part
of the relief measures in the aftermath of COVID-19, the Prime Minister
announced a special economic package and gave a clarion call for
“Atmanirbhar Bharat” or “Self-reliant India”. He noted that this package totals
Rs 20 lakh crore, including the government’s recent announcements on
supporting key sectors and measures by Reserve Bank of India, which is
equivalent to almost 10% of India’s GDP.

The meaning of the term ‘Atmanirbhar Bharat’ is self-reliant India. Prime

Minister in his address stated that India’s self-reliance does not advocate self-
centric arrangements. It is ingrained in the happiness, cooperation and peace
of the world.

It is based on the premise of 'माता भूमममिः पुत्रो अहम् पृममम्यिः' - the culture that considers
the earth to be the mother. It has been clearly specified that this idea of self-
reliance is not about a return to the era of import substitution or isolationism.

Atmanirbhar Bharat v/s Import Substitution

Import substitution relied extensively on imposing high import tariffs and
discouraging foreign trade, while Atmanirbhar Bharat focuses on reforms and
improving ease of doing business, including for foreign firms in the country.
The Import Substitution model advocated a centralised, top-down model
whereas Atmanirbhar Bharat emphasizes on freeing Indian entrepreneurship
and innovation from bureaucratic hurdles.

The idea of Atmanirbhar Bharat if based on 5 pillars:

 74 BPSC MAINS

 Economy: contemplates not an Incremental change but a quantum leap

so that we can convert the current adversity into an advantage.
 Infrastructure: that can be an image of modern India or it can be the
identity of India.
 Systems: driven by 21st-century technology, and that is not based on
old rules.
 Democracy: a vibrant democracy that is the source of energy to make
India self- reliant.
 Demand: where the strength of our demand and supply chain is utilized
intelligently.

. The package has tried to address all sectors of the economy in different parts
viz.:
o Part 1: Businesses including MSMEs.
o Part 2: Poor including migrants and Farmers.
o Part 3: Agriculture.
o Part 4: New Horizons of Growth.
o Part 5: Government Reforms and Enablers.

The reforms and stimulus measures under Rs 20 lakh crore package were
subsequently elaborated by the Finance Minister in five tranches:

Parts Focus Areas Stimulus in Cr (Rs)

I MSME, EPF, Gareeb Kalyan, RERA, Credit 5,94,550

II Farmers, Migrants 3,10,000

 75 BPSC MAINS

III Agriculture & Allied Sectors 1,50,000

Coal, Minerals, Aviation, Defense, Space,

IV
Atomic Energy

48,100

V Ease of doing business, Health, Education

Earlier measures like PMGKP 1,92,800

RBI measures 8,01,603

Total 20,97,053

The package has also highlighted the importance of preferring local products.
In the light of this, citizens are urged to be vocal about their local products
and help these local products become global.

Other major decisions taken under Atmanirbhar Bharat Abhiyan

Apart from the above, under Atmanirbhar Bharat Abhiyan decisions are also
made to reform labour, agriculture, coal sector etc.

Labour sector reforms

 To avoid regional disparity in minimum wages, National Floor Wage to

be introduced.
 Appointment letter to be provided to all workers to promote
formalization.
 Occupational Safety & Health (OSH) code to cover all establishments
engaged in hazardous work.
 Definition of the inter-state migrant worker to include migrant workers
employed directly by the employer.
 76 BPSC MAINS

 ESIC coverage will be extended to all districts and all establishments

employing 10 or more employees as against those in notified
districts/areas only.
 Mandatory ESIC coverage for employees in hazardous industries with
less than 10 employees.
 Introduction of re-skilling funds for retrenched employees.
 Provision for Social Security Fund for unorganized workers.
 Provision of gratuity on completion of one-year service as against 5 years.

Agriculture Marketing Reforms to provide choices to farmers

 Now, farmers are bound to sell agriculture produce only to licensees

in APMCs.
 A law will be formulated to provide choices to farmers to sell produce at
an attractive price and enable barrier-free inter-state trade.
 The legal framework will be created towards contract farming and enable
farmers to engage with processors, aggregators, large retailers, exporters
in a fair and transparent manner.
 Risk mitigation for farmers assured returns and quality standardization
to be an integral part of the framework.

Coal sector reforms

 Introduction of commercial mining in the coal sector through a revenue-

sharing mechanism instead of the regime of fixed Rupee/tonne
 To lower impact on the environment, coal gasification and liquefication
will be incentivized through rebate in revenue share
 Coal Bed Methane (CBM) extraction rights to be auctioned from Coal
India Limited’s (CIL) coal mines.

Self-reliance in defence production

 77 BPSC MAINS

 Ban the import of several weapons and a separate budget provisioning

for domestic capital procurement to help reduce the huge defence import
bill.
 Corporatize the Ordnance Factory Board to improve autonomy,
accountability, and efficiency.
 Increased FDI limit in the defence manufacturing under the automatic
route from 49 percent to 74 percent.

Aircraft and airspace sector

 Restrictions on the utilization of the Indian airspace will be eased so that

civilian flying becomes more efficient.
 Development of world-class airports through PPP,
 The tax regime for Aircraft Maintenance, Repair, and Overhaul
ecosystem rationalized and the convergence between the defence sector
and the civil MROs will be established to create economies of scale.
 Boosting private participation in space activities. The private sector will
be allowed to use ISRO facilities and other relevant assets to improve
their capacities.

Technology-driven education

 PM e-VIDYA — a program for multi-mode access to digital/online

education — will be launched. The program will comprise one earmarked
TV channel per class from 1 to 12. Special e-content will be prepared for
visually and hearing impaired. Top 100 universities will be permitted to
automatically start online courses by 30 May 2020.
 Manodarpan, an initiative for psycho-social support of students,
teachers, and families for mental health and emotional wellbeing, will
also be launched simultaneously.
 National Foundational Literacy and Numeracy Mission will be launched
in December 2020 to ensure that every child attains learning levels and
outcomes in grade 5 by 2025.
 78 BPSC MAINS

Ease of doing business related measures

 The minimum threshold to initiate insolvency proceedings raised to Rs

1 crore
 Suspension of fresh initiation of insolvency proceedings up to one year.
 Special insolvency resolution framework for MSMEs to be notified soon.
 Decriminalization of violations under Companies Act
 Allow direct listing of securities by Indian public companies in
permissible foreign jurisdictions.
 The government will announce a new, coherent policy where all sectors
are open to the private sector while public sector enterprises (PSEs) will
play an important role in defined areas.
 A list of strategic sectors requiring the presence of PSEs in the public
interest will be notified.
 In strategic sectors, at least one enterprise will remain in the public
sector but the private sector will also be allowed.
 In other sectors, PSEs will be privatized.

Parallels with Swadeshi Movement and need for Self-reliance

 The call self-reliance can be compared with the Swadeshi movement and
we can find that it is a relatable response to the evolving political and
economic currents in a globalized world.
 If Swadeshi was the rejection of the colonial exploitation of India and
criticism of the Western model of Capitalism based economic
growth, Atmanirbhar Bharat is an attempt to find India’s legitimate
place in a rapidly changing world.
 Atmanirbhar Bharat like the Swadeshi movement is a program that is
against the unrestricted import of Western thinking and economic
models but is not averse to technology. It stands for modernization, but
without unbridled Westernisation.
 The clarion call ‘Vocal for local’ needs to seen as a response to the
anticipated changes geopolitical order in the post-COVID world.
 79 BPSC MAINS

 The COVID crisis has shown the failings of multilateral and regional
institutions and also the ineffectiveness of trade barriers and standalone
economic models.
 Indian entrepreneurship must be freed from the shackles by adopting
suitable governance models and reforming laws.
 The ‘new Swadeshi’ must transform local industries to connect the ever-
changing global trade structure and lead to ‘glocalization’ that serves
local and global markets.
 Some early signs of this development were seen during the COVID crisis
where India’s position as the ‘pharmacy of the developing world’ was
cemented. The importance of self-reliance was also seen in the self-
sufficiency for food especially cereals, the lack of which would have
exasperated the current crisis.

Criticism of Atmanirbhar Bharat Abhiyan

 Inflated figures
 Several opposition leaders pointed out that as per the calculations
by many economists, the actual government expenditure in the
Atmanirbhar package is just 1%.
 The actions of RBI were included as part of the government’s fiscal
package whereas government expenditure and RBI’s actions cannot
be clubbed together.
 Need to spend more
 The Indian economy likely to contract and the Gross Value Added
across sectors is likely to fall. According to an assessment by Prof
N R Bhanumurthy of the National Institute of Public Finance and
Policy (NIPFP), India’s GVA will contract by 13% this year under the
Base case scenario (The Base case scenario refers to a scenario
where governments bring down their expenditure in line with their
falling revenues to maintain their fiscal deficit target).
 Several economists suggest that the government needs to spend
much more to prevent an economic contraction. Higher public
 80 BPSC MAINS

spending will come at the cost of higher levels of fiscal deficits and
higher inflation, but a growth contraction will cause even worse
outcomes in the form of widespread economic ruin.
 Credit easing will not work immediately
 Direct expenditure by a government such as direct benefit transfer
or by construction will mean that money reaches the people.
 But credit easing by the RBI is not direct government expenditure
and banks will be hesitant to lend the money available with them.
 Nothing to stimulate demand – many economists have opined that the
government stimulus tries to resolve only supply-side issues. There is
nothing to generate demand. This could only be done by putting money
in the hands of people.
 Modest MSME package – according to opposition leaders, the MSME
package was modest and the measures were skewed in favour of the
larger ones. Moreover, the unorganized sector was not catered to.
 Insufficient support for the state governments – the state governments
which are at the forefront of fighting the pandemic have not been
supported adequately via fund transfers.
 A remodelling of Make in India Campaign – The self-reliant India
campaign is criticized by many as a re-modelling of the Make in India
Campaign – which didn’t produce expected results – with some addon-
on.
 The philosophy of self-reliance: India, like most countries, has been
following the principles of globalisation since the LPG reforms in 1991.
Even though the globalised world shrank into isolated countries in the
COVID19 period, it is yet to be seen if self-reliance can be adopted as a
viable economic policy by a country like India, post-COVID.

Impact of this Stimulus Package

 Primary Sector: The measures (reforms to amend ECA, APMC, Contract

framing, etc) announced for the agricultural and allied sectors are
 81 BPSC MAINS

particularly transformative.

o These reforms are steps towards the One Nation One

Market objective and help India become the food factory of the world.
o These would finally help in achieving the goal of a self-sustainable
rural economy.

o Also, the MGNREGA infusion of Rs 40,000 crore may help in

alleviating the distress of migrants when they return to their villages.

 Secondary Sector: Given the importance of MSMEs for Indian economy,

the Rs 3 lakh crore collateral-free loan facility for MSMEs under the
package will help this finance-starved sector and thereby provide a kick
start to the dismal state of the economy.

o Also, as the MSME sector is the second largest employment

generating sector in India, this step will help to sustain the labour
intensive industries and thereby help in leveraging India’s
comparative advantage.

o Additionally, limiting imports of weapons and increasing the limit of

foreign direct investment in defence from 49% to 74% will give a
much-needed boost to the production in the Ordnance Factory
Board, while reducing India’s huge defence import bill.

 Tertiary Sector: The government has adopted a balanced approach in

addressing concerns across sectors. For example:

o The newly launched PM e-Vidya programme for multi-mode access

to digital online education provides a uniform learning platform for
the whole nation, which shall enable schools and universities to
stream courses online without further loss of teaching hours.
 82 BPSC MAINS

o Public expenditure on health will be increased by investing in grass

root health institutions and ramping up health and wellness centres
in rural and urban areas.

Associated Challenges

 Issues Related to Liquidity: The package of Rs 20 lakh crore comprises

both fiscal and monetary measures, the latter being in the nature of credit
guarantees and liquidity infusions into banks and other financial sector
institutions rather than the economy per se.

o Majority of the package is liquidity measures that are supposed to

be transmitted by RBI to Banks and Banks to Citizens. This
transmission wouldn’t be as smooth owing to inefficient
transmission of monetary policy.

 Lack of Demand: The lockdown has lowered aggregate demand, and a

fiscal stimulus is needed. However, the package, by relying
overwhelmingly on credit infusion to boost the economy, has failed to
recognise that investment will pick up only when people across income
segments have money to spend.

 Lack of Backward and Forward Linkages: Unless the rest of the domestic
economy is revived, the MSME sector may face a shortage of demand,
and its production may soon sputter to a close.

 Burgeoning Fiscal Deficit: Government claims that the stimulus package

is around 10% of India’s GDP. However, financing it would be difficult as
the government is worried about containing the fiscal deficit.

 Difficulty in Mobilising Finances: The government seeks a disinvestment

to mobilise the finances for the plan.

o However, the majority of Indian industries are already a bit debt-

laden to take up the stake in PSUs.
 83 BPSC MAINS

o Further, it is difficult to borrow the foriegn markets, as rupee with

respect to dollar is all time low.

Steps that Needs to Be Taken

 Enhancing Demand: The economic package for the country emerging out
of the lockdown requires a stimulus enhancing demand across the
economy.

o The best way for this is to spend on greenfiled infrastructure.

o Infrastructure spending uniquely creates structures that raise

productivity and extends spending power to the section of the
population most affected by the lockdown, namely daily wage
labourers.

 Mobilising Finances: For financing of the stimulus package, India’s

foreign reserves stand at an all-time high which could be strategically
used to finance its needs.

o The rest may have to come from privatisation, taxation, loans and
more international aid.

 Holistic Reforms: Any stimulus package will fail to reflect the trickle-down
effect, until and unless it is backed by reforms in various sectors.

o Thus, Atma nirbhar plan also encompasses the unfinished agenda

of holistic reforms which may include reforms in Civil services,
Education, Skill and Labour, etc.

Need of Atmanirbhar Bharat Abhiyan

1. Faster Economic Recovery: India’s ability to recover from the effects of

COVID-19 and its economic fallout depends on the resilience of domestic
 84 BPSC MAINS

industries. In this light, the mission aims to promote Indian industries while
making them competitive through reforms and government interventions.

2. Supply Chain Fragility: Countries all over the world are now looking at
boosting domestic capabilities to be able to absorb future supply chain
shocks.

3. Emergence of developmental gaps: Continuous depende nce on external

sector for a long time creates developmental gaps in an economy. For example,
technological dependence on imports has negatively affected the level of
indigenous innovation and R&D.

4. Health and Economic Security: The fallout of COVID-19 has showcased

how dependency of any form such as raw material, labour etc. can precipitate
into a security crisis. For example, absence of adequate Personal Protective
Equipment (PPE) production capacity had created a crises situation for India
during the initial period of the crises.

5. Geopolitical considerations: High dependence on other countries for

resources affects the geopolitical standing of the country in that region. For
example, high import dependency of India on China for Active Pharmaceutical
Ingredients (APIs).

Way Forward

The economic crisis triggered by Covid-19 pandemic is much like the 1991
economic crisis, which was a harbinger of a paradigm shift via liberalisation,
privatisation and globalisation. The post-Covid-19 era may usher in
unprecedented opportunities provided the implementation deficit is
adequately addressed.
 85 BPSC MAINS

13. G-7 and India

The United Kingdom has invited Indian Prime Minister as a guest to attend
the 47th G7 summit that is scheduled to be held in June 2021.

 About G-7:
 It is an intergovernmental organisation that was formed in 1975.
 The bloc meets annually to discuss issues of common interest like
global economic governance, international security and energy
policy.

 The G-7 does not have a formal constitution or a fixed headquarters.

The decisions taken by leaders during annual summits are non -
binding.

 Members:

o G-7 is a bloc of industrialized democracies i.e. France, Germany, Italy,

the United Kingdom, Japan, the United States, and Canada.

o The G7 was known as the ‘G8’ for several years after the original
seven were joined by Russia in 1997.

o The Group returned to being called G7 after Russia was expelled as

a member in 2014 following the latter’s annexation of the Crimea
region of Ukraine

 Summit Participation:

o Summits are held annually and hosted on a rotation basis by the

group's members.

o The groundwork for the summit, including matters to be discussed

and follow-up meetings, is done by the “sherpas”, who are generally
personal representatives or members of diplomatic staff such as
ambassadors.
 86 BPSC MAINS

o The leaders of important international organizations like European

Union, IMF, World Bank and the United Nations are also invited.

 Challenges and Concerns:

1. Policies:

 Internally the G7 has a number of disagreements, e.g. clash of the

USA with other members over taxes on imports and action on climate
change.

 The organisation has also been criticised for not reflecting the
current state of global politics or economics.

2. Not Representative:

 There are no G7 members from Africa, Latin America or the

southern hemisphere.

 It is also facing a challenge from fast-growing emerging economies,

like India and Brazil are not members of the G7.

 However, G-20 was formed in 1999, in response to a felt need to

bring more countries on board to address global economic
concerns.

 India and G-7

1. Previous Participation:

 The participation of India at the 45th summit in Biarritz,

France, in August 2019 is a reflection of deepening strategic
partnership and recognition of India as a major economic power.

 India was also invited for the 2020 summit hosted by the
USA which could not take place due to the pandemic.
 87 BPSC MAINS

 Previously India had attended the G-8 summit (it became G-7
from G-8 with the expulsion of Russia in 2014) five times
between 2005 and 2009.

2. Important Platform for Deliberations:

 India’s ability to safeguard its core sovereign concerns such as

trade, Kashmir issue and India’s relations with Russia and Iran
can be discussed with G7 members.

3. Taking on Global Stage:

 India raised issues on climate change and at meetings

which signaled India’s growing willingness to lead on issues that
are points of contention for countries like China and the USA.

4. Significance of India at G7:

 As current president of Brazil-Russia-India-China-South

Africa (BRICS) and G20 president in 2023, India will play a key
role driving in multilateral cooperation helping to build back
better around the world.

Last year the USA President has proposed the expansion of the G7 to be
called ‘G10 or G11’.

 Expansion of G7:

o The proposed expansion has suggested inclusion of India, Australia,

South Korea and Russia in the grouping of the largest advanced
economies.
o The existing G7 group has been called an outdated group of
countries as it does not include emerging economies of the world and
thus it is believed that the group does not follow the current world
order.
o It is unclear that the proposed expansion will be permanent or
temporary.
 88 BPSC MAINS

 Re-inclusion of Russia:

o The proposal to re-admit Russia is expected to receive strong

reactions from other G7 member countries. Russia is seen as an ally
of China.
o The G7 was known as the ‘G8’ for several years after the original
seven were joined by Russia in 1997. The Group returned to being
called G7 after Russia was expelled as a member in 2014 following
the latter’s annexation of the Crimea region of Ukraine.
 India at the G7 Summit:

o India had attended the G7 summit of 2019 at Biarritz in France as

a special guest of French President.
o India has attended the G8 five times as special guests by various
hosts of the G8 Summit in the past.
 Attempt to Unite Allies Against China:

o China is not a member of G7 despite being the world's biggest

population and second-biggest economy. But, China has relatively
low levels of wealth per head of population. Thus it is not considered
as an advanced economy like other G7 members.
o The expansion of G7 has been believed to be a plan to unite all
traditional allies to deal with assertive diplomacy of China.
o The proposal comes amid ongoing issues between the US and China
which includes Hong Kong’s autonomy to Taiwan, the origins of
Covid-19, South China Sea tensions and trade issues.
What is the need of such expansion?

 The G7, formed in 1975-76, comprises the US, Canada, the UK, France,
Germany, Japan, and Italy.
 Not all of these countries are among the most advanced now.
 India is both a military and economic giant but isn’t part of the G7.
 89 BPSC MAINS

 So, its expansion, just like that of the United Nations Security Council,
is called for. However, there is more than that to Trump’s moves.
 China has emerged as the new nemesis for the US and many other
countries, particularly after the coronavirus outbreak in Wuhan.
 Having India and others in the G7 is Trump’s way of countering the
rising influence of China on the world stage.
 On the decision to invite other countries including India, according to
the US president "The G7 as a grouping is not representing properly
what is going on in the world. And it is a very outdated group of
countries."

Significance for India

 The proposed G-11 grouping would recognise India’s place amongst the
world’s richest nations, and acknowledge its global voice.
 A seat at the G-7 would go a long way towards solidifying India's
commitment to fashioning itself as a key manufacturing destination in
the coming years
 It would be in India's interests to adopt a foreign policy stance premised
on multilateralism over isolation, to counter-balance the military
power-divide between itself and China.

The rise of India, China, and Brazil over the past few decades has reduced the
G7’s relevance. Thus, inclusion of emerging economies like India, South
Korea,etc. may extend the support to establish equal levels for each country
at global level. The proposed expansion may also help G7 to be a more
representative institution than current G7 and subsequently to establish an
equal platform at global level.

The decision to expand the grouping, however, cannot be taken by the US

alone. Other members such as the UK, France, Germany, Italy, Japan and
Canada, have to not only agree to Trump’s proposal to expand the grouping
but also on the new members that he wants to add
 90 BPSC MAINS

14. Vocal for local

Being vocal for “local” is a key complement of Atma-Nirbhar Bharat Abhiyan.

In this context, people must internalise the concept of valuing local products
and artefacts and promoting them. Only after this the dream of transforming
“Local” India into a “Glocal” India will be possible.

What is ‘vocal for local’ strategy?

region, state level or even at country level) should be promoted so as to

supplement the idea of Atmanirbhar Bharat.

particular commodity or product as well as it will improve the supply side

bottleneck as the manufactured goods can be obtained from the local
manufactures. This demand and supply side intervention will improve the
declining economic activities because of Covid – 19 and will also improve the
issues of livelihood amid Covid- 19.

India as export hub.

which has hitherto remained untapped or unused.

this to happen government has announced various interventions

through Atmanirbhar Package.
 91 BPSC MAINS

15. BREXIT And Its Impact

The United Kingdom has officially left the European Union (EU) after 47 years
of membership.
European Union
• It is an economic and political union involving 27 European countries.
• It allows free trade and free movement of people, to live, trade and work in
whichever country they choose.
• Article 50 of Lisbon Treaty provides for exit of member countries from
European Union.
 For any country to come out of European Union, it has to negotiate
a settlement deal with EU.
• It has its own currency, the euro, which is used by 19 of the member
countries, its own parliament and other institutions
• The United Kingdom joined it in 1973.

Consequences of BREXIT for the EU

• Further Disintegration: The Brexit vote may strengthen anti-immigration

parties throughout Europe they could force an anti-EU vote in their countries.

• Eurozone: There is a risk that the euro may depreciate. In the longer run,
however, the eurozone would have more power to drive economic and financial
policy in the EU.

• Protectionism: Without the UK, the EU budget would have to do without the
UK’s annual contribution which could lead to more fiscal protectionism.

• Security issues: Brexit would reduce the EU's ability to tackle cross-border
organised crime and transnational terrorism, unless new coordination and
cooperation mechanisms can be established with the UK.

• EU’s Reputation: Brexit would seriously threaten the EU’s global standing
and soft power status and its ability to play a greater role in contemporary
world order.
 92 BPSC MAINS

Consequences for World Economy

• Uncertainty: Its global implications are harder to predict and may differ for
different regions. It could also lead to a setback for free trade and
globalisation.

• Flight to safety: Investors may start selling riskier assets such as stocks and
seeking safety in government bonds.
Impact on India:

Key opportunities

• Free Trade Agreement (FTA): India may start talks on free trade deals with
Britain, EU after Brexit.

 EU and India have been negotiating a FTA since 2007. Despite

growing trade between the EU and India, talks stalled in 2013, only
resuming in 2018.
 Potential sectors to benefit from an FTA between the UK and Indian
include textile, machinery, engineering goods, information
technology and banking.

• Demand for Indian Labour: India’s high proportion of skilled working -age
population and high growth rate will be of particular interest for the UK.

• Service sector: India which is laying greater emphasis on innovation and

high-end works could emerge as a major source of high-tech exports for the
UK.

• Easy market access: India is the major Foreign Direct Investment (FDI)
source for the UK because many Indian firms have used it as a gateway to
Europe.

 With the UK moving out of EU, it might offer more incentives such
as tax breaks, easy regulations and opening up markets to Indian
firms to keep them attracted.
 93 BPSC MAINS

• Cheaper imports: The UK’s currency is expected to remain weaker, so it

would be less expensive for Indian firms to import from their subsidiaries in
the UK.

Key challenges

• Political Risk: It can cause regional uncertainty and the changing dynamics
can potentially reverberate to reach Asia and thus India.

• Impact of Global growth on Indian economy: India cannot be isolated from

the impact from global and regional subdued growth. Any global slowdown
brought forth by Brexit could adversely affect India’s growth in exports and
manufacturing sector.

• Dual Negotiation: India’s FTA negotiation with EU, which saw an impasse
on the issue of bilateral investments, might now need a renegotiation of FTA
with the union. Additionally, a separate trade agreement with the UK might
also need to be worked on.

• Currency weakness and unhedged exposure: While The Indian Rupee is

primarily anchored to the Dollar, the currency is not completely devoid of
volatility, necessitating RBI’s intervention when applicable.

Way forward

• India should fast track its negotiations on FTA with both EU and UK.

• India should look towards other countries for better access to EU market
such as Germany, France, and Italy etc.

• Indian policy toward the region should be shaped keeping in mind the new
De hyphenated dynamics of the region.
 94 BPSC MAINS

16. Civil Services Reform: Mission

Karmayogi

Mission Karmayogi was launched as part of civil services reforms.

The need for civil services reforms

• Accountability: The traditional measures of accountability that rely upon

line or top-down measures do not necessarily provide a good guide to the
accountability culture as a whole. Thus, the need is the recognition that
multi-dimensionality of accountability.

• Emphasize Performance: The present promotion system in civil service is

based on time-scale and is coupled by its security of tenure. These elements
in our civil service are making the dynamic civil servants complacent and
many of the promotions are based upon the patronage system.

• Need for Specialist Knowledge for Senior Level Appointments: The task of
policy making is becoming increasingly complex and needs specialist
knowledge of the subject. Under the existing system, the most senior level
appointments in the Central secretariat as well as top field level posts are
made from amongst the Indian Administrative Service (IAS) officers who are
generalists.

• Effective Disciplinary Regime: Presently, the provisions of discipline rules

are so cumbersome that it becomes very difficult to take action against a
delinquent employee for insubordination and misbehavior. Thus, once
appointed, it is almost impossible to remove or demote an employee.

• Transforming Work Culture: Most government departments suffer from poor

work culture and low productivity.
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• Streamline Rules and Procedures: A large number of rules and procedures

relating to citizen's day to day interface with government are outdated and
dysfunctional and give opportunity to public servants to delay and harass.

• Stability of Tenure: The ever-present threat of transfer also affects the

morale of the officers and their capacity to stand up to undesirable local
pressures.

Recently, the Cabinet approved "Mission Karmayogi"- National Programme for

Civil Services Capacity Building (NPCSCB).

Salient Features

• Financial Allocation: To cover around 46 lakh Central employees, a sum of

Rs.510.86 crore will be spent over a period of 5 years from 2020-21 to 2024-
25. The expenditure is partly funded by multilateral assistance to the tune of
USD 50 million.

• The core guiding principles of the Programme will be

 Transition from 'Rules based' to 'Roles based’ Human Resource (HR)

Management by aligning work allocation of civil servants by matching
their competencies to the requirements of the post.
 Emphasizing on 'on-site learning' to complement the ‘off-site’ learning.
 To create an ecosystem of shared training infrastructure including that
of learning materials, institutions and personnel.
 To calibrate all Civil Service positions to a Framework of Roles, Activities
and Competencies (FRACs) approach.
 To make available to all civil servants, an opportunity to continuously
build and strengthen their Behavioral, Functional and Domain
Competencies.
 To enable all the Central Ministries and Departments to directly invest
their resources towards co-creation of common ecosystem.
 To encourage and partner with the best-in-class learning content
creators including public training institutions, universities etc.
 96 BPSC MAINS

• The Programme will be delivered by setting up an Integrated Government

Online Training-iGOT Karmayogi Platform. It will provide curated digital e-
learning material for capacity building. Other service matters like
confirmation after probation period, deployment, work assignment and
notification of vacancies etc. would eventually be integrated with it.

• Institutional framework:

 Prime Minister's Public Human Resources (HR) Council: It will serve as

the apex body for providing strategic direction to the task of Civil
Services Reform and capacity building under the Chairmanship of
Prime Minister.
 Capacity Building Commission: The role of Commission will be –
✓ To assist the PM Public Human Resources Council in approving
the Annual Capacity Building Plans and coordinate and
supervise the implementation of these plans with the stakeholder
Departments.
✓ To exercise functional supervision over all Central Training
Institutions dealing with civil services capacity building.
✓ To suggest policy interventions required in the areas of HR
Management, training and Capacity Building to the Government.
 Special Purpose Vehicle: It will be set up under Section 8 of the
Companies Act, 2013 for owning and operating the digital assets and
the iGOT Karmayogi platform for online training.
 Coordination Unit headed by the Cabinet Secretary

Intended Benefits

• Ensuring efficient service delivery: as work will be assigned to civil servants

with specific role-competencies and appointing authorities will have
readymade data available for choosing the right candidate for the right job.

• Accountability and Transparency in Governance: through real time

evaluation and goal driven and constant training will ensure “Ease of Living”
for common man and “Ease of Doing Business” for all.
 97 BPSC MAINS

• Citizen-Centricity approach: 'On-site learning' can reduce the gap between

the government and the citizens.

• Preparing the Indian Civil Servant for the future: through technology driven
learning and Standardization of training priorities and pedagogy across
institutes, making him more innovative, professional, progressive and
technology-enabled.

• Collaborative and common ecosystem: will end the culture of working in

silos, reduce duplication of efforts and bring out a new work culture that will
focus on individual as well as institutional capacity building.

• Bridging the gap between generalization and specialization: which exists due
to lack of mid-level training at all levels.

Conclusion

The centralised institutional architecture of the proposed reform must be

balanced by an understanding of the contexts and needs of diverse workers
and learners. A framework for credible assessment with total transparency
should be developed to link training and incentives successfully . Training
must be supplemented with shared vision development, purposeful work and
the empowerment of employees to improve organizational culture.
 98 BPSC MAINS

17. Afghanistan Peace Process

Recently, the USA President has envisaged a New Peace Initiative (Plan) to
decide on the roadmap for peace in Afghanistan.

 Under the plan, the USA proposed a regional conference under the United
Nations auspices with foreign ministers of the USA, India, Russia, China,
Pakistan and Iran to discuss a “unified approach” on Afghanistan.

Background of Afghan-Taliban issue

• The Taliban emerged in the early 1990s following the withdrawal of Soviet
troops from Afghanistan, before the demise of the Soviet Union.

• Following terrorist attacks in the United States (US) in 2001, the U.S.,
together with its NATO allies led a military campaign against Al Qaeda and
the Taliban government in Afghanistan that harbored and supported it.

• The US engagement has continued for nearly 20 years, but without a clear
victory over the Taliban.

• In the intervening time, an elected Afghan government has replaced the

Taliban, and most measures of human development have improved. But
approximately a third of Afghanistan is still a "contested" area.

Key Points of New Peace initiative:

1. USA President’s New Peace Initiative:

 Delay in Withdrawal of Troops: This peace plan has kept open the
possibility that the USA troops, currently deployed in Afghanistan,
might stay on for a longer time.

o Under the earlier USA- Taliban Deal, the USA had promised
to withdraw all troops by May, 2021.
 99 BPSC MAINS

 Immediate Action: The USA is pressing the Taliban to accept an

immediate agreement to reduce violence for 90 days that will
provide the space for the peace initiative.

 Inclusive Process: The USA will not be “dictating terms” to the

Afghan parties, but facilitating an inclusive interim government, an
agreement on the “foundational principles” for a new political order,
and a “permanent and comprehensive ceasefire”.

 Turkey’s Role: The USA is asking Turkey to convene a meeting of

the government in Kabul (capital of Afghanistan) and the Taliban to
finalise a peace settlement.

 Unified Approach: The USA asked the United Nations to convene a

meeting of the foreign ministers from China, Russia, Pakistan, Iran,
India and the United States to develop a “unified approach” to
peace in Afghanistan.

2. India’s Role in Peace Process Through “Unified Approach”:

 India is an important player in the peace process – it has also been

acknowledged by the USA.

 India supports all efforts for peace and reconciliation in Afghanistan

which are inclusive and Afghan-led, Afghanowned and Afghan-
controlled.

 India has invested heavily in infrastructure developments, training

security forces and supplying them with necessary equipment.

 India has a major stake in the stability of Afghanistan since it has

invested considerable resources in Afghanistan's development.

 India hopes to have a role in setting the terms especially concerning

terrorism, violence, women’s rights and democratic values.

3. India’s Interest in Afghanistan:

 100 BPSC MAINS

o Economic and Strategic Interest: Afghanistan is a gateway to the oil

and mineral-rich Central Asian republics.

 Anyone who is in power in Afghanistan controls the land

routes connecting India with Central Asia (via Afghanistan).

o Developmental Projects: The massive reconstruction plans for the

country to offer a lot of opportunities for Indian companies.

 Major projects include the Afghan Parliament, the Zaranj-

Delaram Highway, and the Afghanistan-India Friendship Dam
(Salma Dam).

 Also India’s assistance of more than USD 3 billion in

projects, hundreds of small development projects (of schools,
hospitals and water projects) have cemented its position in
Afghanistan.

o Security Interest: India has been the victim of state-sponsored

terrorism emanating from Pakistan supported terrorist group
operating in the region (e,g. Haqqani network). Thus, setting up a
friendly government in Afghanistan can help tackling Pakistan
supported terrorism.

4. Challenges:

 The Afghan government as well as Taliban are unwilling for any

power sharing.
Taliban is even not willing to give up its sanctuaries in
Pakistan. Nor will it accept any dilution of the strict Islamic
system that it wants to enforce.

 Also, the Taliban is fragmented or divided internally. It is

composed of various regional and tribal groups acting semi-
autonomously.
 101 BPSC MAINS

Therefore, it is possible that some of them may

continue to engage in violence impacting the peace process and
dialogue.

Way Forward

 An independent, sovereign, democratic, pluralistic and inclusive

Afghanistan is crucial for peace and stability in the region.

 In order to ensure the same, the Afghan peace process should be Afghan-
led, Afghan-owned and Afghan-controlled.

 Also, there is a need for the global community to fight against the global
concern of terrorism. In this context, it high time to adopt
the Comprehensive Convention on International Terrorism (proposed by
India at UN in 1996).

 Though the new initiative by the USA is a good step, the road ahead would
not be easy. Achieving lasting peace in Afghanistan will require patience
and compromise among all parties.
 102 BPSC MAINS

18. SAARC Revival

There have been various calls, including by Sri Lanka’s former Prime Minister,
for revival of SAARC for better regional integration and development of the
region.

About South Asian Association for Regional Cooperation (SAARC)

• Established with the signing of the SAARC Charter in Dhaka in 1985. Its
secretariat is in Kathmandu, Nepal.

• Objectives: To promote the welfare of the people of South Asia and to improve
their quality of life, and to accelerate economic growth, territorial integrity,

mutual trust and benefit etc.

• Members: Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal,

Pakistan and Sri Lanka.

Background of current scenario

• The last SAARC summit was held in 2014 and subsequent summits could
not be held after 2016 Summit scheduled in Pakistan got

cancelled in the backdrop of terrorist attacks

in Pathankot and Uri.

o In 2016, India along with Afghanistan, Bangladesh, Bhutan, Maldives

and Sri Lanka declined from participating in the Islamabad SAARC
summit.

• In SAARC Minister’s Meeting 2019, both countries’ ministers boycotted each

other’s speeches.

• In the regional outreach of BRICS summit of 2016, rather than SAAR C,

BIMSTEC leaders were invited giving message that BIMSTEC (of which
 103 BPSC MAINS

Pakistan is not a member), has come to be flaunted as an alternative to

SAARC.

The need for revival of SAARC

• SAARC, as an organisation, reflects the South Asian identity of the

countries, historically and contemporarily. It has geographical identity.
Equally, there is a cultural, linguistic, religious and culinary affinity that
defines South Asia.

• South Asian countries are closely tied in their socio-political state as they

face similar traditional as well as emerging issues like terrorism, energy

shortage, hydro-politics, climate change among many others. SAARC can be

a platform for starting dialogue for timely addressal of these issues.

• BIMSTEC can complement but not replace SAARC as there is a huge

difference in both. SAARC has had 18 summits in the 32 years of its existence

and it has an extensive network of mechanisms, regional centers and

conventions as well as a permanent Secretariat. On the other hand, the
BIMSTEC has recently got momentum and yet to find its role.

• Attraction towards other groupings: If SAARC becomes redundant there may

be possibility that other neighbouring countries may join SCO, as many have
applied for or already have observer status.

o If India loses its clout in this region, then it will be a critical setback
to its aspirations for a global role.

• Economic integration: As per world Bank report, with intra-regional trade at

less than 5% of total trade, South Asia is the least integrated region in the
world, dwarfed by East Asia's 35% and Europe's 60%. SAARC is critical for
economic integration of the region.
 104 BPSC MAINS

• Neighbourhood first policy of which SAARC could become the central pillar,
and for India to play global role, its regional is the pillar for If we are waiting
for the Asian century, South Asia shouldn’t remain fragmented.

To face such challenges, the South Asian countries must cooperate. The
European and ASEAN experience is testimony to the contribution of regional
cooperation in the economic growth of the countries.

Way Forward

• To make SAARC more effective, the organisation must be reformed and

member countries must reach a consensus regarding the changes required.
So, first step should be to setup a mechanism for informal discussions, formal
mediation and resolution mechanisms tailored to the region’s specific needs
and problems

• Sri Lanka’s former Prime Minister proposed ‘Economic Integration Road Map
(EIRM)’: a “sub-region”, consisting of the five southern States of India and Sri
Lanka, to tap the total population of 300 million people and a combined GDP
of over $500 billion.

o Addressing para-tariffs and non-tariff barriers for successful regional

integration, tapping ecommerce and enhancing tourism were crucial to
such a road map.

• Expediting subregional cooperation projects like Bhutan, India and Nepal

(BBIN) on the BBIN Motor Vehicles Agreement (MVA) would help in continuing
cooperation, boosting trust among members.

Failures and challenges of SAARC

• South Asia Free Trade Agreement (SAFTA) that came into force in 2006 is
often highlighted as a prominent outcome of SAARC, but given the presence
of sensitive lists, it is yet to be implemented in spirit.
 105 BPSC MAINS

• Pakistan’s non-cooperation has stalled some major initiatives under SAARC.

For example: SAARC– Motor Vehicles Agreement (MVA) and SAARC satellite
project (replaced with BBIN-MVA and South Asia satellite respectively).

• SAARC does not have any arrangement for resolving disputes or mediating
conflicts.

• Security cooperation: There is a lack of consensus on threat perceptions.

For instance, while cross-border terrorism emanating from Pakistan is a
major concern for India, Pakistan has failed to address these concerns.

• Asymmetry between India and other member countries: They perceive India
as “Big Brother” and have been reluctant to implement various agreements
under SAARC.

• SAARC faces a shortage of resources, and countries have been reluctant to

increase their contributions.
 106 BPSC MAINS

19. India and Indo-Pacific

There has been repositioning of global economic and military power towards
Indo-Pacific resulting in significant political, economic and social changes in
the Indian Ocean Region.

What is the Indo-Pacific?

• It is an integrated theatre that combines the Indian Ocean and the Pacific
Ocean, and the land masses that surround them.

• Geographical interpretations of the Indo pacific region differ for different

countries. Countries like the US describe the Indo- Pacific as a region that
starts at the Western shore of the Americas and ends at the shores of the
Indian subcontinent. While for India and Japan, the concept is much broader
in expanse, extending to the shores of African continent.
 107 BPSC MAINS

Factors that are driving the global shift towards the Indo-pacific

• Important Sea Lines of Communication (SLOC): With the presence of key

choke points, like Mozambique Channel and Bab-el-Mandeb etc., the region
plays a significant role in shaping the new power dynamics and ensuring
smooth trade flows.

• Flourishing Trade and Economy: The Indo-Pacific Region shares 44% of the
world surface area; includes 65% of the world population; accounts for 62%
of the world GDP; and contributes to 46% of the world’s merchandise trade.

• Rise in non-traditional threats in the region, like incidents of piracy, illegal

fishing, trafficking, terrorism and environmental hazards, among other
things. Dealing with these threats requires integrated and collaborated efforts
of all nations.

• Richness in Natural resources: The expanse of Indian and Pacific Ocean

combined has vast reserves of marine resources including- Offshore
Hydrocarbons, Sea Bed minerals, Rare earth metals, fisheries etc.

• China factor: In the previous few decades, China’s aggressive foreign policy,
rapid economic expansion, military modernization and power projection have
raised several red flags among regional and extra-regional countries. Some
concerns in this regard are:

o Issues related to Belt and Road Initiative (BRI) like non

transparency, creating unsustainable debt burdens etc.
o China’s disregard for International Rules and Customs: E.g. China’s
refusal to accept the ruling of the Permanent Court of Arbitration in
South China Sea dispute.
o Increasing Militarization of Indian Ocean Region (IOR): China has
established commercial ports across the Indo Pacific, such as
Gwadar port (Pakistan), port in Hambantota (Sri Lanka) etc., in
addition to its overseas naval base in Djibouti.
 108 BPSC MAINS

India’s interests in the Indo-Pacific

• Peace and security in the Indian Ocean: Nearly 50% of India’s trade is
centered in the Indo-Pacific Region and the Indian Ocean carries 90% of
India’s trade and its energy sources. India wants to assure freedom of
navigation, secure choke points, resolve conflicts peacefully and address
nontraditional security threats in the Indian Ocean Region (IOR).

• Geo-political aspirations: To expand its own presence in the region,

especially in Africa, the Middle East and Southeast Asia and maintain its role
as a net security provider.

• Countering China: Ensuring that China does not gain a significant strategic
foothold in the region.

• Enhancing Trade and Investment Cooperation: by encouraging greater flow

of goods, services, investment and technology between India and other
countries in the region.

• Promoting sustainable development: In the coming times, climate change is

set to adversely affect India. Thus, India favors sustainable development of
the region through development of blue economy.

Other Interests: include- Combating marine pollution, Regulating illegal,

unregulated, and unreported (IUU) fishing, deep sea mineral exploration and
effective disaster risk management.

India’s vision for Indo-Pacific

Prime Minister’s Keynote Address at Shangri La Dialogue, 2018 highlighted

key elements of India’s vision for the Indo-Pacific:

o A free, open, inclusive region

o Southeast Asia at the centre of Indo Pacific: With a key role played by
ASEAN.
 109 BPSC MAINS

o A common rules-based order for the region, based on principles such

as sovereignty and territorial integrity and equality of all nations etc.
o Equal access to common spaces on sea and in the air, as a right under
international law.
o Circumventing power rivalries through partnerships, on the basis of
shared values and interests.

India’s steps towards Indo-Pacific

• Strengthening and preserving traditional roles in IOR

o Security Provider: India has been the primary security provider for and
strategic partner to most of its smaller neighbors like Maldives,
Mauritius, Seychelles, and Sri Lanka.
o First Responder: India’s navy is among the first to reach nations
requiring humanitarian assistance or medical aid in times of crisis and
disasters. E.g. Operation Vanilla at Madagascar.

• Foreign Policy and Initiatives

o Establishment of Indo-Pacific Division in 2019, involving in regional

groupings like BIMSTEC, Indian Ocean Rim Association (IORA),
Mekong Ganga Cooperation and Forum for India-Pacific Islands
cooperation for collaboration on multitude of subjects, and
partnerships with countries through platforms like QUAD, ASEAN
etc.

• Initiatives like Indo Pacific Oceans’ Initiative, Indian Ocean Naval

Symposium (increase maritime cooperation), Asia Africa Growth Corridor (for
development and cooperation projects; quality infrastructure and
institutional capacity) were taken up.

• Policies aligning with the vision of Indo Pacific such as

 110 BPSC MAINS

o Vision ‘SAGAR’ (Security and Growth for All in the Region): A holistic
policy that aims to pursue and promote India’s geo-political, strategic
and economic interests on the seas, particularly in the Indian Ocean.
o Project Mausam: Aims to understand how the knowledge and
manipulation of the monsoon winds has shaped interactions across the
Indian Ocean and led to the spread of shared knowledge systems,
traditions, technologies and ideas along maritime routes.

Challenges India face in the region

• Limited Naval Capacity and Lack of military bases: With a meager allocation
of 15 percent of India’s military budget.

• Slow pace of developments: E.g. since the release of the AAGC, there h as
been very little movement on this initiative. Challenges to trade due to tariff
and non-tariff measures, poor infrastructure etc.

• Balancing Continental and Maritime Strategies: Overemphasizing the Indo-

Pacific runs the risk of antagonizing China. While the US and Australia are
physically distant from China; India has to secure its continental margins
with China and suitably allocate resources for the same.

• Barriers to fruitful partnerships in the region: This includes lack of

definitional consensus and differences in priorities with each nation having
different political appetite and available resources for the Indian and Pacific
Oceans.
Way forward
• Enhancing engagements with non-traditional players: India should now look
to other non-traditional players with great potential such as Micronesia to
address shared interests in the region. E.g. Pacific island nations.
• Strategic use of Island Territories: India in collaboration with its Indo-Pacific
partners, must utilize the potential of island territories to extend its reach etc.
• Innovative mechanisms such as QUAD+: E.g. Recent Quad Plus talks with
South Korea, Vietnam and New Zealand, convened to address challenges
 111 BPSC MAINS

brought about by the COVID-19 crisis in the Indo-Pacific region, are a step in
the right direction.
 112 BPSC MAINS

20. NAM and its relevance

External Affairs Minister, S. Jaishankar, said recently that non-alignment

was a concept of relevance in a specific era and a particular context, though
the independence of action enshrined in it remains a factor of continuity in

India’s foreign policy.

ABOUT NAM

Non-alignment was a policy fashioned during the Cold War, to retain an

autonomy of policy (not equidistance) between two politico-military blocs. The
Non-Aligned Movement (NAM) provided a platform for newly independent
developing nations to join together to protect this autonomy. The movement
had its origins in the 1947 Asian Relations Meeting in New Delhi and the 1955
Asian- African Conference in Bandung, Indonesia. Through an initiative of the
Indian Prime Minister Jawaharlal Nehru and the Yugoslav President Josip
Broz Tito.

Its principles include:

• Mutual respect for each other's territorial integrity and sovereignty.

• Mutual non-aggression.

• Mutual non-interference in domestic affairs.

• Equality and mutual benefit.

• Peaceful co-existence.

Its membership is particularly concentrated in countries considered to be

developing or part of the Third World. The Non-Aligned Movement (NAM) is a
forum of 120 developing world states. After the United Nations, it is the largest
grouping of states worldwide. It also aims at facilitating South-South
cooperation.
 113 BPSC MAINS

IS NAM IS LOSING RELEVANCE FOR INDIA?

• It is a widely held belief that the Non-Aligned Movement (NAM) was highly
relevant for India interests (that advocated decolonisation, end to apartheid,
global nuclear disarmament, ushering in of new international economic and
information orders) during the bipolar era of the Cold War.

• But since the 1990s, NAM is seen to be losing its relevance as

ο Decolonization one of its primary objectives was no more an issue in

the Third World region. Alongside other objectives such as apartheid,
were also terminated one by one.

ο Doesn’t reflect reality of our times- World shifted to unipolar initially

(as USA rose as global power). But in the recent times world is
witnessing the rise of new world powers like China, India. Thus is
moving towards multilateralism. NAM in present form is not suited to
address this reality.

ο Rise of various other multilateral groupings such as BASIC for

protecting and promoting its interests on climate change; G4 for
pushing through reforms of the UN Security Council; G20 for managing
the world economy; BRICS and IBSA to enhance economic coordination
with countries that are similarly placed- are a challenge to NAM’s utility.

• Nonetheless, India still remains committed to the principles and objectives

of the Non Aligned Movement and has been calling for reforming of the Non-
Aligned Movement to reflect realities of today.

NAM’S RE-SHAPING NEEDED TO KEEP IT RELEVANT

• Structural change - Establishment of a permanent secretariat that 120

member organization lacks at present.
 114 BPSC MAINS

• Symbolic changes - the name of the organization, the Non-Aligned

Movement, is a misnomer. As, nonalignment was not the only goal of the NAM;
it was formed on diverse objectives.

• Policy/agenda changes - Originally, the NAM was launched as a political

entity. Later in the process, it adopted economic issues as several members
faced some very serious economic problems such as acute poverty and
underdevelopment. Thus, the organization evolved into a politico-economic
institution. This should continue. The reformed and reshaped organization
should dedicate equal weight to political and economic issues facing the
Global South.

• While most of the concerns of NAM have been addressed, some old issues
still persist such as hunger, poverty and disease- which need to be addressed
through enhanced south-south collaboration.

• The most important role for NAM today lies in framing a concrete economic
agenda for a just and fair international economic order especially in an age
for rising protectionism tendencies.

• Newer global issues such as global warming, diseases, drug trafficking,

terrorism, rising digital divide, ethnic nationalism and regional wars call for
reform of the group to include wider issues.

• Neo-colonialism with china’s debt trap diplomacy is increasingly becoming

a global concern that group needs to fight together.

WAY FORWARD

For a few years now, non-alignment has not been projected by our
policymakers as a tenet of India’s foreign policy. Successive formulations
being coined - Strategic autonomy; Multi-alignment; issue-based
partnerships must be explored. Movement that represents two thirds of the
world’s population must be reformed and refined to advance our collective
aspirations within the framework of geostrategic realities of our times.
115 BPSC MAINS

21. South China Sea dispute

 116 BPSC MAINS

About south China Sea:

o Location: South China Sea is an arm of western Pacific Ocean in
Southeast Asia. It is south of China, east & south of Vietnam, west of the
Philippines and north of the island of Borneo.

 It is connected by Taiwan Strait with the East China Sea and

by Luzon Strait with the Philippine Sea.

o Bordering states & territories (clockwise from north): the People’s

Republic of China, the Republic of China (Taiwan), the Philippines,
Malaysia, Brunei, Indonesia, Singapore and Vietnam.

o Strategic Importance: This sea holds tremendous strategic importance for

its location as it is the connecting link between the Indian Ocean and the
Pacific Ocean (Strait of Malacca).

Importance of South China Sea

• Strategic Location: It is a key commercial thorough fare connecting Asia with

Europe and Africa.

• One third of global shipping, or a total of US$3.37 trillion of international

trade, passes through the South China Sea.

o It is estimated that around 80 percent of Beijing’s imports of oil

reach the country through the South China Sea after passing the
Strait of Malacca.
o Up to 97% of India’s total International trade volume is sea borne,
half of which passes through the strait of Malacca. In addition,
ASEAN constitutes one of India’s largest trade partners. Any
instability in the SCS (south china sea) would adversely affect the
shipping lanes and have a knock-on effect on India’s economy.
 117 BPSC MAINS

• Natural Resource: The sea is believed to contain major reserves of natural

resources, such as natural gas and oil.

• Fisheries: It accounts for 10% of the world’s fisheries, making it a key source
of food for hundreds of millions of people.

Issues with South China Sea

• Territorial conflict: Philippines, Vietnam, China, Brunei, Taiwan and

Malaysia hold different, sometimes overlapping, territorial claims over the sea,
based on various accounts of history and geography.

o China claims more than 80 per cent. China’s “nine-dash line” is a

geographical marker used to assert its claim. It stretches as far as
2,000km from the Chinese mainland, reaching waters close to
Indonesia and Malaysia.
o Vietnam claims sovereignty over the Paracel Islands and the Spratly
Islands.
o Philippines asserts ownership of the Spratly archipelago and the
Scarborough Shoal
o Brunei and Malaysia have claimed sovereignty over southern parts of
the sea and some of Spratly Islands.

• Violation of International rules: In 2016, China re jected UNCLOS Arbitral

Tribunal ruling.

o Tribunal said that China cannot claim historic rights to resources in

the waters within a “nine-dash line” encompassing much of the South
China Sea if these waters are within the exclusive economic zone, or
EEZ, of other coastal states.
o Arbitration was initiated by the Philippines and considered the legality
of China's Nine-Dash Line, Chinese island construction within the
Philippine Exclusive Economic Zone, and resource exploitation in
disputed waters, among other issues.
 118 BPSC MAINS

• Balance of Power: The SCS borders three U.S. treaty allies: Japan, South
Korea, and the Philippines. In addition, SCS borders Southeast Asian nations
that are current, emerging, or potential U.S. partner countries, such as
Singapore, Vietnam, and Indonesia. China growing presence in SCS has
visibly challenged the international system and US hegemony in the region.

• Militarisation of South China Sea: Both China and US have escalated their
military presence in SCS. These developments have provoked apprehensions
among both littorals as well as countries external to the region, as all of them
have an interest in ensuring that commercial and military access across the
Pacific remains unimpeded.

Global Response

• Association of Southeast Asian Nations (ASEAN) has been working with

China on an official code of conduct to avoid clashes in the disputed waters.
A binding agreement has been discussed for years to little avail but in August
2018 it was revealed all the parties had agreed on a single draft negotiating
text.

o Except for China, the other claimants in the South China Sea (Brunei,
Malaysia, the Philippines and Vietnam) are members of the ASEAN

• The United States has stepped up its military activity and naval presence in
the region in recent years, including freedom of navigation operations
(FONOPs).

• India has favoured inclusivity and plurality. Institutions and orders need to
be “consultative and non prescriptive, respectful of the region’s preference for
consensus-based approaches.

Way forward

• The real challenge is in judging China’s legitimate interests, how far they
must be accommodated, and where the line must be drawn. This would prove
an arduous task as Beijing will likely reject assessments of its interests.
 119 BPSC MAINS

• A more constructive approach to making China comply is to put in place

deterrence measures while providing sufficient encouragement so that it
eventually recognises the framework of international law and order.

• One way of achieving this is through stronger and more dynamic

institutional mechanisms. More importantly, there should be efforts towards
ascertaining areas of common interests which offer scope for China to
contribute constructively in order to draw it into the global rules-based order
and leverage it in a beneficial role.
 120 BPSC MAINS

22. BRICS

About BRICS

• BRICS started in 2001 as BRIC, an acronym coined by Goldman Sachs for

Brazil, Russia, India, and China. South Africa was added in 2010. The notion
behind the coinage was that the nations' economies would come to collectively
dominate global growth by 2050.

• The BRICS grouping aims to promote peace, security, development and

cooperation in the world. It also aims at making a positive impact on the
development of humanity and establishing a more equitable and fairer world.

• BRICS Nations account for

The 2020 BRICS Summit was held virtually under the chairmanship of
Russia, which adopted the motto for the year as ‘BRICS Partnership for Global
Stability, Shared Security and Innovative Growth’.
 121 BPSC MAINS

Key Takeaways of the summit

Moscow Declaration was adopted which reflects the five countries’

consolidated approach to the further development of the association. Two
pillars of this year's summit are the economy and counterterrorism:

• Strategy for BRICS Economic Partnership 2020-2025 was signed: It

focussed on three priority areas — trade, investment and finance; digital
economy; and sustainable development.

• The BRICS counter-terrorism strategy: with the objective of contributing to

the global efforts to combat terrorism while also strengthening intra-BRICS
ties in the area. This includes improving intelligence sharing, cracking down

on their sources of finance and preventing the spread of terrorism.

• Other highlights:

o Proposals to set up a BRICS Integrated Early Warning System for

future outbreaks of infectious diseases and to minimise the risks of
such outbreaks turning into pandemics.
o BRICS countries also highlighted the urgency of agreeing on an
extension of the 2010 Russia-U.S. Treaty on Measures for the
Further Reduction and Limitation of Strategic Offensive Arms
without delay, which speaks highly of the five countries' shared
vision for global strategic stability.
o Countries reiterated the need for a comprehensive global governance
model based on reviewing the UN and its Security Council, IMF and
WTO mechanisms and bringing in more representativeness and
efficiency into these organizations. Also, for the first time the group
called for reforms of the World Health Organisation.

Significance of BRICS for India

 122 BPSC MAINS

• Safe space to modulate rivalry: The grouping provides India and China the
opportunity to decouple their strategic contest from the other dimensions of
the relationship.

o During the Doklam standoff of 2017 and the recent Ladakh standoff,
both China and India remained engaged through BRICS throughout the
entirety of the crisis.

• Providing a transcontinental reach: With the presence of Brazil and South

Africa in the group, it provides is a low-cost way for India to signal its
aspirations as a global power.

• Boosting India’s demand for institutional reforms: BRICS’ repeated calls for
reform of multilateral institutions, boosts India’s own assertions in this
direction, acting as a multiplier to the country’s own demands for reform.

• Contribution in creating an inclusive international financial architecture:

India was the main BRICS country behind the establishment of the NDB and
has remained the largest beneficiary of NDB loans so far.

o NDB intends to provide non-conditional financing, unlike the WB and

IMF and attempts to rectify the North-South divide to make it more
inclusive.

• Trade dependency: Thirty-four per cent of India's total imports are from the
other four BRICS nations.

Challenges faced by the grouping

• Disparities among the members: The grouping bring together a mix of

democratic and authoritarian regimes, with very different societal structures,
resource bases, developmental trajectories, and historical traditions. The
current pandemic has exacerbated pre-existing differences amongst the
BRICS.
 123 BPSC MAINS

o From South Africa, along with other African countries, China has
attracted criticism for the ill treatment that has been meted out to
African residents there.

• Suspicions among members about Chinese regional and global ambition

may impact group’s functioning in future.

o This results from China’s Belt and Road Initiative; adventurism in

the neighbouring seas and the passage of a new security law in Hong
Kong.

• Approach towards institutional reforms: BRICS may have raised the issue
of UNSC reform but this is more declaratory in nature than a serious attempt
to overhaul the UNSC. BRICS is interested in selective reform of the system,
as its members have developed vested interests in the existing system. That
is why the grouping seeks to reform global financial governance but is divided
over UNSC reform.

• Dependency on other global institutions: BRICS does not have the ‘strategic
vision’ to deal with ‘global matters’ on its own. For this, it relies on other
international organisations, like throwing its support behind the G20 when
the latter came together to deal with the 2008 financial crisis.

• Changing world order: The ongoing churn in the world order, further
complicated by the pandemic sweeping through the world, has raised
concerns about future policy directions of BRICS member states and its
eventual impact on the organisation as a whole. If the US China rivalry
intensifies, the already complex dynamics between India and China, India’s
balancing act with the US, the growing Russia-China linkages, Russia-US
tensions — raise the prospects of an ‘internal split.’

• Lack of capital: BRICS do not have the funds to outcompete the Bretton
Wood Institutions, the World Bank and IMF. More investment, more capital
is needed in the NDB.
 124 BPSC MAINS

• Low Intra-country trade: Despite the opportunities and the potential, intra-
BRICS trade and investment flows are very low. Imports and exports
amongBRICS nations are low. FDI flows to and from the BRICS are mainly to
other countries and not to each other. China dominates whatever little flows
happen within the BRICS nations.

Way ahead

BRICS has managed to begin a process of institutionalisation as well as

increased intra-BRICS cooperation in areas like health, science and
technology, finance, trade etc. This has also meant that despite the differing

foreign policy positions in several areas, BRICS had remained an important

arena for ‘discussing the prospects of geopolitical evolution.’

• The future of BRICS will depend on how much the leaders have agreed to
stand collectively against trade protectionism, increase investments and
share a global political agenda.

• The BRICS nations need to move towards a bottom-up approach to

increasing private sector and citizen involvement. This could involve a single
BRICS visa, removing visa requirements for member nations, inducing
increased collaboration among researchers and orchestrating private sector
collaboration.

• As the COVID-19 pandemic underscored the need for stepping up

international cooperation in the healthcare sector, it provides an opportunity
for the group to accelerate the establishment of the BRICS vaccine research
and development centre as agreed in 2018.

Conclusion

The ongoing churn in the global order is especially relevant for BRICS and its
future as a multilateral organisation. Building a collective strategy and
identifying priority processes to implement it can ensure that BRICS
cooperation deepens and becomes self-reinforcing.
 125 BPSC MAINS

23. SCO (Shanghai Cooperation

Organization)
About the SCO

• It is a permanent intergovernmental political, economic and military

organization founded in Shanghai in 2001.

o Regional development and security issues (terrorism, ethnic

separatism and religious extremism) are its main focus.

• Russian and Mandarin are presently used as official and working languages
in the SCO.

• Working of the SCO is underpinned by the “Shanghai Spirit” which is about

mutual trust, mutual benefit, equality, consultation, respect for cultural
diversity and pursuit of common development.

• Working structure

o The Heads of State Council (HSC): It is the highest decision -making

body in the SCO.
o The Heads of Government Council (HGC): It is SCO’s second-highest
body that deals with the grouping’s trade and economic agenda besides
approving its annual budget.
o It has two permanent bodies
✓ The Secretariat coordinates the activity of the SCO and provides
informational, analytical, legal, organisational and technical
support.
✓ The Regional Anti-Terrorist Structure (RATS) works for
combating regional terrorism, separatism and extremism.
o The SCO Business Council and SCO Interbank Consortium also work
for increasing the cooperation among members for expanding economic
cooperation and bank services respectively.
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• Global influence

o SCO represents around 42% of the world's population and 20%

of the global GDP.
o 4 of its members (India, Russia, China and Pakistan) are nuclear
powers and 2 (Russia and China) are permanent members of the
UN Security Council (UNSC).
o The SCO is considered a counterweight to the North Atlantic
Treaty Organization (NATO).
✓ Both the organizations have geopolitical interests in Central
Asia and the Gulf.
✓ The SCO holds a degree of influence that is greater (in terms
of land-mass) than NATO.

Relevance of the SCO for India

• Controlling regional terrorism: SCO’s defence-centric structures and

activities of RATS have achieved considerable successes in curbing regional
terrorism

• Participant in the political dynamics of Afghanistan: It is likely that after the

withdrawal of US and NATO forces from Afghanistan SCO will start playing a
more prominent role.

o The SCO-Afghanistan Contact Group which was suspended in 2009

has also resumed working since 2017. Thus, SCO would provide a
platform to India for engaging in the Afghanistan’s political dynamics.

• Political: At annual summit of the SCO India gets opportunity to ren ew

bilateral ties with regional countries.

o The forum also provides India greater visibility in the affairs of the
Eurasian region.
o India can also scuttle influence of Pakistan in Central Asia.
 127 BPSC MAINS

o SCO also makes India an active key stakeholder in shaping the

dynamics of politically fragile, Central Asian Region (CAR) which is also
seen as a fertile ground for terrorism and drug trafficking.

• Economic: CAR is rich in iron-ore, coal, oil, gas, gold, lead, zinc,
molybdenum, uranium, gold, gas and energy gas etc. India’s economic
diplomacy in SCO is focused less on Russia, China and Pakistan and more
on CARs.

• Connectivity: India’s pending energy proje cts like the TAPI (Turkmenistan
Afghanistan-Pakistan-India) pipeline, IPI (Iran-Pakistan-India) pipeline, and
CASA (Central Asia-South Asia)-1000 electricity transmission projects all of
which are blocked due to Pakistan may get a much needed push through the
SCO.

Challenges for India in the SCO

• Dominance of China: SCO is a China dominated organisation. Barring India,

the Belt and Road Initiative (BRI) has been endorsed by all the members.

• Controlling Pakistan Sponsored terrorism: China has always condoned

Pakistan’s link with terrorist activities in India. SCO may not prove very
effective in controlling Pakistan sponsored terrorism.

• Trust deficit: Growing closeness of Russia and China adds to the difficulties
that India faces due to China- Pakistan axis in the SCO. Other member
countries are also well disposed towards Pakistan. This puts India at the risk
of being isolated in the organization.

• Lack of connectivity with Central Asia and beyond: A major impediment in

connectivity with Central Asia and Eurasia remains the strategic denial of
direct land connectivity between India and Afghanistan and beyond by
Pakistan.

o India’s bilateral trade with Central Asia stands at about $2 billion

against over $50 billion of China’s.

Way ahead for India

 128 BPSC MAINS

• Maintain an independent voice against China’s dominance: On BRI India

has articulated its view that connectivity projects must respect the
sovereignty, and territorial integrity.

o India-Russia diplomatic relations and India’s cultural and historical

connect with the CAR could be leveraged for promoting India’s interests
in the SCO.

• Revitalise connectivity projects: The opening of Chabahar port and entry into
Ashgabat agreement should be utilized for a stronger presence in Eurasia.

o Also, a clear focus on operationalising International North-South Transport

Corridor (INSTC) is needed.

o This will pave the way for enlarging economic clout in the central Asia
which in turn makes India indispensible in the region.

• Constructively engage Pakistan: Recently Russia, at the request of the

Indian, has decided not to enter into an arms relationship with Pakistan. India
should mobilize opinion in the SCO to ensure its connectivity projects to
extended neighbors are unblocked by Pakistan.

• Play a constructive role: India could play a role in de-radicalisation of youths

in Central Asia. It should also leverage its soft power to enhance its spheres
of engagements in the field of culture, cuisine, education etc. This will ensure
India does not get isolated in the organization.
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24. India's Vaccine Diplomacy

Days after India began vaccinating its own population against the novel
coronavirus, India has begun dispatching millions of doses to its South Asian
neighbors and key partner countries.

What is Vaccine Diplomacy and why is it important in the current global

context?

Vaccine diplomacy can be seen as a branch of global health diplomacy that

relies on the use or delivery of vaccines and alongside providing ancillary
services like distribution assistance and related research. For instance, India
has been a major supplier of RT-PCR vaccines in the African region since the
AIDS outbreak. This can be seen as an example of India’s vaccine diplomacy.

In the current context, when the world is amid a health crisis in the form of
COVID-19, vaccine diplomacy has assumed an even larger role due to
following reasons:

• Countering emergence of Vaccine Nationalism: With the development of

vaccines, it was seen that some rich countries started cornering and
sometimes hoarding vaccines. This is being termed as vaccine nationalism

where myopic view of national needs is solely catered to with disregard for
collective global needs. For instance, rich countries account for just 16
percent of the world’s population, but they have cornered 60 percent of the
vaccines bought globally.

o In this context, it becomes important to not follow suit and create a

counter narrative of vaccine internationalism or vaccine diplomacy
where supply of vaccines is seen as geopolitical opportunity rather than
a national liability.

• Strengthening the idea of collective global response: Since the start of the
pandemic, it has been made clear that only a collective response from all
 130 BPSC MAINS

countries executed simultaneously would be able to eliminate the virus. On

those lines, vaccine diplomacy ensures that supply of vaccines reach es all
areas in a short span of time creating a swift and timely global response.

How can vaccine diplomacy aid India’s foreign policy?

• Generating goodwill in the neighborhood: In keeping with its “Neighborhood

First” initiative, the first consignments of the Covishield vaccine and Covaxin
have gone to its immediate neighbors i.e., Bangladesh, Bhutan, Maldives,
Myanmar, and Nepal, and to key Indian Ocean partners, Mauritius and
Seychelles.

o Vaccine diplomacy may help provide a fresh start to troubled

relationships in the neighborhood. For example, Nepal which has been
sparring with India in recent months, has expressed gratitude for
India’s gesture.
o Also, such gestures will help counter the “big brother” or “bully”
perception of India among the smaller neighbors like Bangladesh.

• Vaccine pacts with other developing nations: India envisages to distribute

vaccines to Latin America, Africa, and the former Soviet Republics. Many of
the recipient countries have signed vaccine pacts with India on a government-
to-government basis. This will strengthen India’s soft power in the region by
decreasing the “vaccine inequality” in the developing world.

o India has also offered to help friendly nations in enhancing their cold
chain and storage capacities for the delivery of Vaccines.

• India’s Vaccine Maitri (Vaccine Friendship) has evoked a positive response

globally. The leadership shown by India during this crisis may increase its
global standing. India’s gesture of sharing its vaccine supplies with other
countries stands in sharp contrast to the idea of Vaccine Nationalism.
 131 BPSC MAINS

• India’s comparative advantage in vaccine diplomacy: There are several

advantages that makes India a more suitable candidate for vaccine diplomacy
from other countries including China-

o India is one of the largest manufacturers of vaccines in the world; it

supplies around 60 percent of the global requirement of DPT, BCG, and
measles vaccines.
o Indian vaccines have shown less side-effects and are low cost and easier
to store and transport.
o Extension of already prevalent supply of medicines and generic drugs
like hydroxychloroquine (once thought to help treat COVID-19) and
paracetamol (a painkiller).

• Aiding overall medical diplomacy and pharmaceutical sector: Global demand

for its COVID-19 vaccines is soaring. Its commercial supply will benefit Indian
pharmaceutical businesses now and in the long run.

What are the challenges that India faces in executing the idea of vaccine
diplomacy?

• Balancing Vaccine Diplomacy with domestic needs: India will need more
than a billion doses to protect its own population. To ensure that supply is
not constrained in India and simultaneously fulfilling international
commitments on the ‘vaccine pacts’ will be a manufacturing as well as a
logistical challenge.

• Competition from China: Although India has a comparative advantage with

regard to China due to its medical Industry. But China has by and large
recovered from the pandemic and it will be able to inject more diplomatic
resources towards vaccine diplomacy, thus challenging India’s leadership in
the domain.

Way forward
 132 BPSC MAINS

India’s potential and the current context provides it with a twin opportunity
to serve humanity and simultaneously strengthen its geopolitical position,
efforts should be made to capitalize on this opportunity as far as possible. The
immediate gains which may generated, like opening of communication
channels, creation of goodwill etc. should be capitalized with more concrete
engagements through geopolitical partnerships, economic agreements and
resolution of bilateral issues.
 133 BPSC MAINS

25. Military Coup in Myanmar

Recently, the Myanmar military has grabbed power in a coup - the third time
in the nation’s history since its independence from British rule in 1948.

 A one-year state of emergency has been imposed and democratically

elected leader Aung San Suu Kyi has been detained.

 ‘Coup’ is generally described as a sudden, violent, and illegal seizure of

power from a government.

 About the Military Coup:

 In the November 2020 parliamentary election, Suu Kyi’s

party National League for Democracy (NLD) secured the majority
of the seats.

 In the Myanmars’ Parliament, the military holds 25% of the

total seats according to the 2008 military-drafted
constitution and several key ministerial positions are also
reserved for military appointees.

 When the newly elected Myanmar lawmakers were to hold the

first session of Parliament in 2021, the military imposed a state
of emergency for one year citing massive voting fraud in the
parliamentary elections.

 Global Reaction:

 China: ‘All parties in Myanmar will properly handle their

differences under the constitution and legal framework to
maintain political and social stability’.

 USA: The USA President threatened to reimpose sanctions on

Myanmar following a coup by the country’s military leaders
and called for a concerted international response to press them
to relinquish power.
134 BPSC MAINS

 ASEAN Countries: ASEAN’s current chair, Brunei, called for

‘dialogue among parties, reconciliation and the return to
normalcy’.

 Singapore, Malaysia and Indonesia expressed concern,

while Thailand, Cambodia, and the Philippines noted
that this was Myanmar’s ‘internal affair’.

 India’s Reaction:

 India supports the process of democratic transition in

Myanmar.

 Though India has expressed deep concern over recent

developments in Myanmar, cutting off from the
Myanmar military is not a viable option as India has
significant economic and strategic interests in
Myanmar and its neighbourhood.

 India’s Strategic interests in Myanmar and its relations with Myanmar

Military:

 India’s Relationship with Myanmar Military:

 India’s military-diplomatic outreach to Myanmar

became a cornerstone of its Act East policy.

 On the eve of the recent visit of the Foreign Secretary

Chief of the Army Staff to Myanmar in 2020, Myanmar
handed over 22 Indian insurgents from across the
border and it was decided to ramp up the sale of
military hardware to Myanmar, including 105 mm light
artillery guns, naval gunboats and more recently,
lightweight torpedoes.

 Recent example of cooperation is that Myanmar has

begun to vaccinate itself with the 1.5 million doses
135 BPSC MAINS

of Covid vaccine sent by India, while putting China’s

3,00,000 doses on hold.

 India’s Interests in Myanmar:

 Infrastructure and Connectivity: India has cultivated

several infrastructure and development projects with
Myanmar, which it sees as the “gateway to the East”
and ASEAN countries:

 Operationalisation of the crucial Sittwe port in

Myanmar’s Rakhine state by 2021 is committed.

 India assists infrastructure projects such as

the India-Myanmar-Thailand trilateral
highway and the Kaladan Multi-Modal Transit
Transport Project.

 The Kaladan project will link Kolkata to

Sittwe in Myanmar and then from
Myanmar’s Kaladan river to India’s
north-east.

 The two countries signed the Land Border

Crossing Agreement in 2018, which allowed
bona fide travellers with valid documents to
cross the border at two international points of
entry/exit- Moreh-Tamu and Zokhawthar-Rih.
136 BPSC MAINS

 Security: India has been concerned over some militant groups

like the United National Liberation Front (UNLF) and National
Democratic Front of Bodoland (NDFB) from the North-East
region taking shelter in Myanmar.

 Indian needs perpetual support and coordination from

Myanmar for the maintenance of security and stability
along its North East border areas.

 Rohingya Issues: India is committed to ensuring safe,

sustainable and speedy return of Rohingya refugees from
refugee camps of India and Bangladesh.

 Building on the progress made under the Rakhine State

Development Programme (RSDP), India has recently
proposed to finalise projects under phase-III of the
programme, including setting up of a skills training
centre and upgrading of agricultural mechanisation.
 137 BPSC MAINS

 Investment: With Indian investments of over USD 1.2 billion,

Myanmar holds considerable importance than any other
country in South Asia.

 Energy: The two countries are also expanding partnership in

the area of energy cooperation.

 Recently, India approved an investment of over USD 120

million in the Shwe Oil and Gas project.

Way Forward

India should continue to engage with the present regime in Myanmar working
towards mutual development of people of both the countries while it should
support sharing experiences in constitutionalism and federalism to assist
Myanmar in resolving the prevailing stalemate.