Category: Burning Issues

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Pakistan’s National Security Committee (NSC) approved the country’s first-ever National Security Policy (NSP) – which is designed to be a “Comprehensive National Security Framework” and covers a five-year period from 2022-26. Pakistan’s (official) policy now leaves the door open for trade with India even without the settlement of the Kashmir issue – provided there is headway in bilateral talks. Earlier, Kashmir used to be at the centre stage of all Pakistani outcry.

New Security Policy

• The country’s new policy would act as an umbrella document, to be used as a guideline for Pakistan`s foreign, international and defence related policies.
• The five-year-policy document, which will span 2022-26, is being touted by the Pakistan government as the country’s first-ever strategy paper of its kind.

Key highlights of the document

• Focus on trade: The 100-page policy document has also put out elaborate plans to open trade and business ties with India.
• Silent on Kashmir: Kashmir issue with India has been identified as a ‘vital national policy’ issue for Pakistan.
• No public discussion: Only a part of the national security policy will be made public.
• Defying hostility with India: The document states that Pakistan is not seeking hostility with India for the next 100 years.
• Curbing militancy: The new policy also deals with the issue of militant and dissident groups and advocates dialogue with ‘reconcilable elements.’
• No re-conciliation with India: There are no prospects of rapprochement with India under the current government.
• Others: On the internal front, the new policy identifies five key areas of population/migration, health, climate and water, food security and gender mainstreaming.

Significance of such policy

• Pakistan and India have mostly been at loggerheads with each other throughout history.
• During the first term of Narendra Modi in 2014, the relations took a positive turn when he announced his intentions to have cordial relations with Pakistan.
• He had also visited Islamabad in 2015 unannounced to attend a marriage ceremony in Ex-PMs family.
• However, the relations deteriorated following the horrific 2016 Uri attacks.

Concerns with Pakistan’s National Security Policy

• The vision laid out in the policy: There are concerns that this will result in increasing unchecked military control within the country and affect the borer-tensions with India as well.
• Increased corruption: The Pakistan Army has never fully exposed the country’s defence spending and it does not allow inspection of its huge network of economic businesses and real estate.
• Might increase extremism: There are concerns that Pakistan’s National Security Policy will result in increased radical events of extremism in the wake of challenging the security issues.
• Hamper country’s growth: Diverting resources from development to military, in addition to Pakistan’s philosophy and attitude, is seen to hamper the country’s social growth and economic management.

Implications of the National Security Policy of Pakistan on India

• The policy hints at peace with other countries, especially in the neighbourhood.
• Strategic establishment in India would need to look at the policy in the context of security challenges.
• The policy will impact Pakistan’s approach to India as an open-ended subject by changing the military engagements and infrastructure built up along the border areas.
• The economic pressures and primacy in the National Security Policy make India review its trade policy towards Pakistan and take advantage of better economic dynamics.
• India needs to demarcate a clear distinction between geo-politics and geo-economics in the context of provision of the policy.
• The policy is unlikely to bring any change in Pakistan’s active support to cross-border terrorism and position on Kashmir.

China as anchor

• Stoutly refusing to open up trade with India, Pakistan has looked to other economic and commercial partners among whom China is by far the most important.
• The security relationship was the anchor of the China-Pakistan ties. Now, Pakistan hopes that China will offer its assistance to transform its economy.
• It looks to the mechanisms under the China-Pakistan Economic Corridor (CPEC) to play a crucial role through connectivity, port development, power production and other investments.

Factors behind the complex bilateral ties between the two countries

(1) Cross-border Terrorism

• Terrorism emanating from territories under Pakistan’s control remains a core concern in bilateral relations.
• India has consistently stressed the need for Pakistan to take credible, irreversible and verifiable action to end cross-border terrorism against India.
• Pakistan has yet not brought the perpetrators of the Mumbai terror attacks 2008 to justice in the ongoing trials, even after all the evidence have been provided to them.
• India has firmly stated that it will not tolerate and comprise on issues regarding national security.
• Based on attacks in India and involvement of the neighboring country, the Indian Army had conducted surgical strike at various terrorist launch pads across the Line of Control, as an answer to the attack at the army camp in Uri, Jammu and Kashmir.
• India had again hit back over the cross-border terror attack on the convey of Indian security forces in Pulwama by carrying out a successful airstrike at a training camp of JeM in Balakot, Pakistan.

(2) Kashmir

• Due to political differences between the two countries, the territorial claim of Kashmir has been the subject of wars in 1947, 1965 and a limited conflict in 1999 and frequent ceasefire violations and promotion of rebellion within the Indian side of Jammu and Kashmir.
• The then princely state remains an area of contention and is divided between the two countries by the Line of Control (LoC), which demarcates the ceasefire line agreed post-1947 conflict.

(3) Siachen Glacier

• Siachen Glacier is located in Northern Ladakh in the Karakoram Range.
• Most of the Siachen Glacier is disputed between India and Pakistan. Before 1984, neither of the two countries had any permanent presence on the glacier.
• Under the Shimla Agreement of 1972, the Siachen was called barren and useless. This Agreement also did not specify the boundary between India and Pakistan.
• When India got intelligence that Pakistan was going to occupy Siachen Glacier, it launched Operation Meghdoot to reach the glacier first.
• Following the success of Operation Meghdoot, the Indian Army obtained the area at a higher altitude and Pakistan army getting a much lower altitude. Thus, India has a strategic advantage in this region.
• Following the 2003 armistice treaty between the two countries, firing and bombardment have ceased in this area, though both the sides have stationed their armies in the region.

(4) Sir Creek Dispute

• Sir Creek is a 96 km estuary in the Rann of Kutch. Rann of Kutch lies between Gujarat (India) and Sindh (Pakistan).
• Pakistan claims the entire Sir Creek in accordance with a 1914 agreement that was signed between the Government of Sindh and Rulers of Kutch.
• India, on the other hand, claims that the boundary lies mid-channel as per a 1925 map.
• If one country agrees to the other’s position, the former will lose a vast amount of Exclusive Economic Zone that is rich with gas and mineral deposits.

(5) Water disputes

• The Indus Waters Treaty is the water distribution treaty signed between India and Pakistan, brokered by World Bank.
• According to the treaty, three rivers, Ravi, Sutlej and Beas were given to India for exclusive use and the other three rivers, Sindh, Jhelum and Chenab were given to Pakistan.
• This treaty failed to address the dispute since source rivers of Indus Basin were in India, having the potential to create drought and famines in Pakistan.
• Last year, Modi Government had stated that India would no longer allow its share of river waters to flow into Pakistan in response to the Pulwama terror attack.
• According to the 1960 Indus Waters Treaty, India can exploit rivers under its control without disturbing the flow or quantum. India plans to divert its three rivers to the Yamuna.

Major Achievements

Some of the confidence-building measures taken to improve Indo-Pakistan relations are as follows:

(1) Military CBMs

• Agreement on the Prohibition of Attack against Nuclear Installations and Facilities was signed in 1988 and ratified in 1990. The first exchange took place on January 1, 1992.
• As per the Agreement, India and Pakistan exchange the list of their nuclear installations to prevent attacking each other’s atomic facilities. This practise has been followed to date.
• Agreement on Advance Notification on Military Exercises, Manoeuvres and Troop Movements were brought into effect in 1991 played a crucial role in deescalating the tensions on both sides of the LoC.
• A communication link between Pakistan Maritime Security Agency and the Indian Coast Guard was established in 2005 to facilitate the early exchange of information regarding anglers who are apprehended for straying into each other’s waters.
• A hotline between the Directors-General of Military Operations (DGMOs) of both the countries have been in effect since 1965 and was used in an unscheduled exchange to discuss troop movements and allay tensions in the aftermath of the 26/11 attacks.

(2) Non-military CBMs

• Delhi-Lahore Bus Service was initiated in 1999. It was suspended in the aftermath of the 2001 Indian Parliament Attack.
  • The bus service was later resumed in 2003 when bilateral relations had improved.
  • This service was recently suspended in 2019 in the aftermath of the abrogation of Article 370 and 35A of the Indian Constitution.
• Samjhauta Express was launched following the signing of the Shimla Agreement connects the Pakistani city of Lahore and the Indian town of Attari.
  • It had been suspended frequently, but due to negotiations, it was restarted. In 2019, it was suspended after the revocation of the special status of Kashmir.
• Weekly Bus Service between Srinagar and Muzaffarabad was initiated in 2005. It has withstood the test of times and still operational.
• Since 2014, India has been successful in the repatriation of 2133 Indians from Pakistan’s custody (including fishermen), and still, about 275 Indians are believed to be in their custody
• The Bilateral Protocol on Visits to Religious Shrines was signed between the two countries in 1974.
• The protocol provides for three Hindu pilgrimages and four Sikh pilgrimages every year to visit 15 shrines in Pakistan while five Pakistan pilgrimage visit shrines in India.
• An agreement between India and Pakistan for the facilitation of pilgrims to visit Gurdwara Darbar Sahib Kartarpur, Pakistan, was signed on 24 October 2019 in order to fulfill the long-standing demand of the pilgrims to have easy and smooth access to the holy Gurudwara.

Failures in the CBM process

• Although there are hotlines connecting both military and political leaders in both countries, they have been scarcely used when required the most.
• The absence of communications has led to suspicions and accusations of misinformation.
• There is a disproportionate emphasis on military CBMs and inadequate recognition of several momentous non-military CBMs.
• Governments of both sides often use CBMs as political tools to win over specific constituencies, which can be very damaging in the long-run.
• Public conciliatory statements, which are meant to be CBMs, can have the opposite effect if they are insincere.

Way Forward

(1) Reforming Pakistan’s political structure

• Despite the democratic elections in Pakistan, the military wields real power in the country. This holds true especially on matters of defence, national security and foreign policy.
• Pakistan’s Inter-Service Intelligence (ISI), consisting for personnel from Pakistan Armed Forces, is often accused of supporting and training separatist militant groups operating in India.
• This makes it highly difficult for India to undertake diplomatic relations with the Pakistani government since it is not the decision-maker in the country.
• Thus, a strong political reform in Pakistan, one that focuses on the welfare of the Pakistani nationals is vital to improving its relations with India.

(2) People-to-people relations

• Propaganda is currently being used by both sides through the media to justify each other’s stand on conflicting issues.
• This is creating misconception, hatred and stereotyping among the people of both countries.
• This method is also used for political gains of both nations, with the least consideration towards people’s welfare and the need for peace.
• Steps must be taken to facilitate travel between the two countries, ease up visa regimes, provide security for tourists, set up student and faculty exchanges, and invite professionals, intellectuals and artists to events to promote the bilateral ties.

(3) Promote trade

Steps that can be undertaken to improve bilateral trade include:

• Remove non-tariff barriers and bureaucratic hurdles that are currently impeding trade.
• Cut down duties
• Improve customs clearance procedures
• Proportionate trade is beneficial for both sides and is possible through the right government policies.

(4) Promoting soft diplomacy

• Use of Indus Waters Treaty to promote hydro diplomacy. Both nations can come together to construct Water Grid between their territories to address the water problems in the region.
• Cultural diplomacy can be used through the exchange of ideas, values, traditions, and other cultural aspects to strengthen bilateral ties, enhance socio-cultural cooperation and promote individual national interest.
• Promotion of Cricket diplomacy i.e., the use of cricket as a diplomatic tool to overcome differences between the two countries.
• To a certain extent, soft diplomacy improved the people-to-people relations between the two countries and eased the tensions on both sides.

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The surge in demand for gig workers, particularly in the shared services and logistics segments, in the aftermath of the Covid-19 pandemic led to mushrooming of job discovery platforms.

What is the gig economy?

• In a gig economy, temporary, flexible jobs are commonplace and companies tend toward hiring independent contractors and freelancers instead of full-time employees.
• A gig economy undermines the traditional economy of full-time workers who rarely change positions and instead focus on a lifetime career. e.g Employee models of Uber, Ola, Swiggy etc
• In this economy, tech-enabled platforms connect the consumer to the gig worker to hire services on a short-term basis. Gig workers include self-employed, freelancers, independent contributors and part-time workers.
• This project-based gig economy allows the service adopter to cut overhead costs, and the gig worker to get paid for a specific task performed instead of receiving a fixed salary.
• The gig economy can benefit workers, businesses, and consumers by making work more adaptable to the needs of the moment and demand for flexible lifestyles.

• At the same time, the gig economy can have downsides due to the erosion of traditional economic relationships between workers, businesses, and clients.
• Sectors such as media, real estate, legal, hospitality, technology-help, management, medicine, allied and education are already operating in gig culture.

Is Gig economy a new concept?

• The ‘Gig concept’ is very common in advanced countries like the US, Europe, who hire part time workers.
• With freelancing evolving into the Gig Economy, the concept is attracting a lot of people in India as well.
• Gig economy is remunerative and gives a wide range of choices but it also leads to casualization of the labor.

Trends in Gig Economy 

• The digital gig economy generated a gross volume of approximately $204 bn from worldwide customers in 2018. Transportation-based services contributed to over 50% of this value.
• The size of the gig economy is projected to grow by a 17% CAGR and generate a gross volume of ~$455 bn by 2023.
• Digital platforms have emerged as enablers for employment creation with the power to easily discover job seekers and job providers in the absence of middlemen.
• Due to the rapid developments in technology, the transaction cost for outsourcing non-core activities is reducing and facilitating an increase in the number of tasks which can be performed by each worker.
• Thus, firms are shrinking in size and we are witnessing a rise in start-ups which are outsourcing many activities to expert service providers on a contractual basis.
• While the gig economy is popular amongst the blue-collar workers in India, there is now huge potential for the white-collar workers as well, due to increasing demand in industries – project-specific consultants, logo/content design, web design etc.
• The gig economy is expanding from less skilled services to more skilled jobs.

Gig Economy in India

• The COVID-19 pandemic-induced remote working has blurred the age-old skepticism over the efficiency and dependability of contractual or part-time employees, with companies increasingly looking to hire gig workers.
• As per a report by ASSOCHAM, India’s gig sector is expected to increase to US$455 billion at a CAGR of 17% by 2024 and has the potential to expand at least 2x the pre-pandemic estimates.
• India has emerged as the 5^th largest country for flexi-staffing after US, China, Brazil and Japan. 
• Haryana, Madhya Pradesh, Andhra Pradesh, Gujarat and Telangana have most opportunities in terms of growth for the flexi-workers.
• In another estimate, India is likely to have 350 million gig jobs by 2025, presenting a huge opportunity for job seekers to capitalize and adapt to the changing work dynamics.
• At present, India has a pool of ~15 million freelance workers staffed in projects across IT, HR and designing. In addition, India’s workforce is growing by ~4 million people annually.
• And as most of them are young millennials, they are showing an increasing preference for gig contracts. This trend is expected to significantly impact gig economy in the near future.

Key Drivers for Gig Economy

(1) Unconventional work approach by millennials

• Hectic lifestyles of employees in private sectors have created a negative perception of full-time employment among millennials.
• Factors such as growth opportunities, flexibility, better work-life balance and option to not acquire a college degree are encouraging millennials to opt for freelancing opportunities as opposed to corporate work culture.

(2) Emergence of a start-up culture

• The start-up ecosystem in India has been developing rapidly. For start-ups, hiring full-time employees leads to high fixed costs and therefore, contractual freelancers are hired for non-core activities.
• Start-ups are also looking at hiring skilled technology freelancers (on a per project basis) in areas such as engineering, product, data science and ML to bolster their tech platforms.

(3) MNCs are hiring contractual employees

• MNCs are adopting flexi-hiring options, especially for niche projects, to reduce operational expenses after the pandemic. This trend is significantly contributing to the gig culture in India.

(4) Rise in freelancing platforms

• Rise in freelancing platforms has also aided in the development of the gig economy. Many home-grown platforms such as Upwork, Truelancer and Guru provide access to high-skilled freelancers.
• The number of freelancing platforms has significantly increased—from 80 in 2009 to 330 in 2021. These platforms boast of a clientele comprising not only start-ups, but also Fortune 500 companies.

(5) Business Models

• Gig employees work on various compensation models such as fixed-fee (decided during contract initiation), time & effort, actual unit of work delivered and quality of outcome.
• The fixed-fee model is the most prevalent; however, time & effort model comes a close second.

(6) Impact of Covid-19

• According to the survey, India stands to lose ~135 million jobs because of the pandemic and this is likely to push the full-time workforce towards the gig economy.
• Moreover, many laid-off employees are focusing on developing skills to avail freelance job opportunities and become a part of this burgeoning economy.

Why is Gig Economy preferred by workers?

• One can work on freelancing as well as work full-time somewhere else. Hence it is profitable to the worker as he can hit two targets together and multitask.
• It is very beneficial for women who work on this concept when they cannot continue their work or take a break from career due to marriage or child birth.
• Retired people can stay active after retirement as this will keep them engaged away from loneliness and depression and can earn as well on their own rather than depending on their children or pensions.
• It offers flexibility and diversity to the workers. It offers flexibility when workers can work according to their convenience and schedule rather than routine like in full-time jobs.
• The travel costs and energy to travel to the workplace is reduced.

Why is Gig Economy preferred by Employers?

• The efficiency, efficacy and productivity of workers in gig economy are much more than that of a stable full-time job.
• More Economical for employers – When employment givers can’t afford to hire full-time workers, they hire people for specific projects and pay them.
• Start-up companies and entrepreneurs – who do not have big financial space – can grow only if they can leverage the services of contract employees or freelancers.
• In a gig economy, businesses save resources in terms of benefits, office space and training. (Reference – Whatis)
• Competition and efficiency among workers improved.

Challenges faced in Gig economy

• There are no labour welfare emoluments like pension, gratuity, etc. for the workers.
• Gig workers may face unfair termination. They may also attain minimum wages and less paid leave.
• Workers do not have the bargaining power to negotiate a fair deal with their employers.
• Unionization of workers will be difficult.
• Confidentiality of documents etc of the workplace is not guaranteed
• The gig economy is not accessible for people in many rural areas where internet connectivity and electricity is unavailable.
• The social welfare objectives can be neglected if business and profitable avenues of freelancing are prioritized.

What are the major impacts of the gig economy?

• Gig economy companies had introduced innovative systems and methods to the labour market. These methods are offering workers flexibility and the freedom to choose how and when they work.
• But this chaotic and amoebic environment has helped create an environment of exploitation where workers get minimal protection and low wages.
• A government study in the UK recently established that a quarter of the people working in the country’s gig economy are being paid below the national minimum wage.
• As most of the gig economy companies act as an aggregator and digital companies, their interaction with the labourers and customers is minimal.

Gig Economy and the women empowerment

• The women are considerably placed in a victimised position in the workplace. The flexibility that the gig economy offers women help to come out of the shackles of the male domination.
• The financial independence is often considered as the first step towards the women empowerment. The labour of the women will be valued and paid worth for.
• Rise and participation of the women in the job market would help in improving the indicators where women participation is considered the least and they will occupy roles as the decision makers.
• But women due to lack of certain options are forced to perform the dual responsibility of work and home.
• Dual exploitation faced as they are sandwiched between the familial and professional responsibilities where they have to forego their professional lives.

Code on Social Security 2019

• To aid gig workers, the govt passed the ‘Code on Social Security’, which will provide workers with life and disability cover, accidental insurance, health & maternity benefits old age protection and others.
• Under this code, the central and state governments will primarily fund social security measures, with a nominal contribution (1-2% of their annual turnover) by the aggregator.
• Also, the contribution made by the aggregator/platform will not exceed 5% of the amount payable to gig and platform workers.
• In addition, the code proposed to establish a ‘National Social Security Board’, which will supervise and formulate schemes for the well-being of gig and platform workers.

Way Forward

• The gig economy has been on the rise and is expected to beat the pre-pandemic estimates due the expected influx of gig workers transitioning from full-time employment.
• While the government has taken the initial steps to ensure social security of gig workers, the ‘Code on Social Security’ needs to be fine-tuned.
• Further, all platform workers should be offered mandatory coverage under the Bharat Pradhan Mantri Jan Arogya Yojana, Pradhan Mantri Suraksha Bima Yojana and Pradhan Mantri Jeevan Jyoti Bima Yojana.
  • This can be facilitated through the employer companies and will ensure employee protection; thus, guaranteeing a sustainable gig economy.
• There should be revamped of employee policy assessments and evaluations. An effective evaluation process is required to ensure consistent and quality work, where customized assessment procedures need to be developed.
• India should learn from developed countries like the US and basic training and courses on freelancing, etc. should be provided to people.
• Career Avenues, choices, counselling should be available to students and workers on gig economy.
• Companies will also need a human resource department that can manage a diverse workforce and imbue the company’s culture into gig workers.

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The Union government has approved reservations for the OBC and EWS (Economically Weaker Section) categories within the All India Quota (AIQ) for National Eligibility-cum-Entrance Test (NEET), the uniform entrance examination for medical and dental colleges across the country.

What is NEET?

• The National Eligibility-cum-Entrance Test (NEET) is the entrance examination for entry to all undergraduate (NEET-UG) and postgraduate (NEET-PG) medical and dental courses in the country.
• On April 13, 2016, the Supreme Court upheld the newly inserted section 10-D of the Indian Medical Council Act.
• This provided for a uniform entrance examination to all medical educational institutions at the undergraduate level and postgraduate level in Hindi, English and various other languages.

What is the All-India Quota?

• Although the same examination is held across the country, a chunk of the seats in state medical/dental colleges is reserved for students domiciled in their respective states.
• The remaining seats —15% in UG and 50% in PG — are surrendered by the states to the All India Quota.
• The AIQ scheme was introduced in 1986 under the directions of the Supreme Court to provide for domicile-free, merit-based opportunities to students from any state to study in a good medical college in any other state.
• In deemed/central universities, ESIC, and Armed Forces Medical College (AFMC), 100% seats are reserved under the AIQ.

What was the reservation policy followed so far?

• Until 2007, no reservation was implemented within the All-India Quota for medical admission.
• On January 31, 2007, in Abhay Nath v University of Delhi and Others, the Supreme Court directed that reservation of 15% for Scheduled Castes and 7.5% for Scheduled Tribes be introduced in the AIQ.
• The same year, the government passed the Central Educational Institutions (Reservation in Admission) Act, 2007 providing for 27% reservation to OBC students in central government institutions.
• While state government medical and dental colleges provide reservations to OBCs in seats outside the All India Quota, this benefit was so far not extended to seats allocated under the AIQ in these state colleges.
• The 10% EWS quota under the Constitution (One Hundred And Third Amendment) Act, 2019, too, has been implemented in central educational institutions, but not in the NEET AIQ for state institutions.

What led to the decision?

• The denial of OBC and EWS reservations has been the subject of protests for years.
• In July last year, the Madras High Court ruled that OBC students too can avail reservation in the AIQ.
• It held that the reservation could not be implemented for the then academic year for want of time, and can be implemented from 2021-22.

Let us look at the EWS quota and related information in detail.

EWS Quota: A Backgrounder

• The 10% reservation was introduced through the 103rd Constitution Amendment and enforced in January 2019.
• It added Clause (6) to Article 15 to empower the Government to introduce special provisions for the EWS among citizens except those in the classes that already enjoy reservation.
• It allows reservation in educational institutions, both public and private, whether aided or unaided, excluding those run by minority institutions, up to a maximum of 10%.
• It also added Clause (6) to Article 16 to facilitate reservation in employment.
• The new clauses make it clear that the EWS reservation will be in addition to the existing reservation.

Inception of EWS Quota

• EWS reservation was granted based on the recommendations of a commission headed by Major General (retd) S R Sinho.
• The Commission for Economically Backward Classes was constituted by the then UPA government in 2005, and submitted its report in July 2010.
• Based on this, the Cabinet in January 2019 decided to amend the Constitution (103rd Amendment) to provide reservation to EWS.

Why was the new committee constituted?

• The committee aimed to revisit the criteria for determining the economically weaker sections in terms of the provisions of the explanation to Article 15 of the Constitution.
• It followed the Supreme Court’s observation that the income criterion for determining EWS was “arbitrary”.

Significance of the quota

• Empowering economically weaker sections: The 10% quota is progressive and could address the issues of educational and income inequality in India since the economically weaker sections of citizens have remained excluded from attending higher educational institutions and public employment due to their financial incapacity.
• Constitutional recognition of the Economic Backwards: There are many people or classes other than backward classes who are living under hunger and poverty-stricken conditions.
  • The proposed reservation through a constitutional amendment would give constitutional recognition to the poor from the upper castes.
• Reduction of Caste Based Discrimination: It will gradually remove the stigma associated with reservation because reservation has historically been related with caste and most often the upper caste look down upon those who come through the reservation.
• In Ram Singh v. Union of India (2015), SC asserted that social deficiencies may exist beyond the concept of caste (e.g. economic status/gender identity as in transgenders).

What are the criteria to identify the section?

• The main criterion is that those above an annual income limit of ₹8 lakh are excluded.
• It accounts income from all sources such as salary, business, agriculture and profession for the financial year prior to the application of the family, applicants, their parents, siblings and minor children.
• Possession of any of these assets, too, can take a person outside the EWS pool:
  1. Five or more acres of agricultural land
  2. A residential flat of 1,000 sq.ft. and above
  3. A residential plot of 100 square yards and above in notified municipalities, and
  4. A residential plot of 200 square yards and above in other areas

What are the court’s questions about the criteria?

• Reduction within general category: The EWS quota remains a controversy as its critics say it reduces the size of the open category, besides breaching the 50% limit on the total reservation.
• Arbitrariness over income limit: The court has been intrigued by the income limit being fixed at ₹8 lakh per year. It is the same figure for excluding the ‘creamy layer’ from OBC reservation benefits.
• Socio-economic backwardness: A crucial difference is that those in the general category, to whom the EWS quota is applicable, do not suffer from social or educational backwardness, unlike those classified as the OBC.
• Metropolitan criteria: There are other questions as to whether any exercise was undertaken to derive the exceptions such as why the flat criterion does not differentiate between metropolitan and non-metropolitan areas.
• OBC like criteria: The question the court has raised is that when the OBC category is socially and educationally backward and, therefore, has additional impediments to overcome.
• Not based on relevant data: In line with the Supreme Court’s known position that any reservation or norms for exclusion should be based on relevant data.
• Breaches reservation cap: There is a cap of 50% on reservation as ruled in the Indira Sawhney Case. The principle of balancing equality ordains reservation.

What is the current status of the EWS quota?

• The reservation for the EWS is being implemented by the Union Government for the second year now.
• Recruitment test results show that the category has a lower cut-off mark than the OBC, a point that has upset the traditional beneficiaries of reservation based on caste.
• The explanation is that only a small number of people are currently applying under the EWS category — one has to get an income certificate from the revenue authorities — and therefore the cut-off is low.
• However, when the number picks up over time, the cut-off marks are expected to rise.

Practical issues with EWS Quota

The EWS quota will come in for judicial scrutiny soon. But it’s not only a matter for the judiciary, India’s Parliament should revisit the law too.

• Hasty legislation: This law was passed in haste. It was passed in both the houses within 48 hours, and got presidential approval the next day.
• Minority appeasement: It is widely argued that the law was passed to appease a certain section of upper-caste society and to suppress the demands for minority reservations.
• Morality put to question: Imagine! A constitutional amendment has been made with few hours of deliberation and without consultation of the targeted group. This is certainly against constitutional morality and propriety.
• Substantial backing is missing: This amendment is based on a wrong or unverified premise. This is at best a wild guess or a supposition because the government has not produced any data to back this point.
• Under-reservation of Backward Classes: The assertion is based on the fact that we have different data to prove the under-representation of SC, ST, OBCs. That implies that ‘upper’ castes are over-represented (with 100 minus reservation).
• Rationale of 10%: There is one more problem in this regard. The SC and ST quota is based on their total population. But the rationale for the 10 per cent quota was never discussed.
• Principle of Equality: Economic backwardness is quite a fluid identity. It has nothing to do with historic wrongdoings and liabilities caused to the Backward Classes.

Should India need reservation?

• Duty of the state to provide equality of status and opportunity: Reservation is one of the tools against social oppression and injustice against certain classes. Otherwise known as affirmative action, reservation helps in uplifting backward classes.
• Reservation is just one of the methods for social upliftment: There are many other methods like providing scholarships, funds, coachings, and other welfare schemes.
• Vote bank politics: Indian Constitution allowed reservation only for socially and educationally backward classes. However, in India, it became caste-based reservation instead of class-based reservation.
• Mandal Commission Report: Initially, the reservation was intended only for SC/ST communities – that too for a period of 10 years (1951-1961). However, it got extended ever since.
  • After the implementation of Mandal Commission report in 1990, the scope of the reservation was widened to include Other Backward Communities (OBCs).
• The benefits of the reservation were successively enjoyed only by a few communities (or families), excluding the truly deserving ones. Even 70 years after independence, the demand for reservation has only increased.
  • Now, with the introduction of economic criteria for reservation, in addition to the caste-criteria which already existed, things have become more complicated.

Way forward

• Preserving the merit: We cannot rule out the sorry state of economic backwardness hampering merit in our country.
• Rational critera: There has to be collective wisdom to define and measure the economic weakness of certain sections of the society in order to shape the concept of economic justice.
• Judicial guidance: Judicial interpretation will pave the wave forward for deciding the criterion for EWS Quota.
• Targetted beneficiaries. The centre needs to resort to more rational criteria for deciding the targeted beneficiary of this reservation system. Caste Census data can be useful in this regard.
• Income study: The per capita income or GDP or the difference in purchasing power in the rural and urban areas, should be taken into account while a single income limit was formulated for the whole country.

Conclusion

• Reservation is a constitutional scheme to ensure the participation of backward classes shoulder to shoulder with all citizens in the nation-building process.
• The EWS quota with above discussed ambiguities is the subversion of the constitutional scheme for reservation.

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Recently, in the exercise of provisions under the Consumer Protection Act, 2019, the Central Government has notified the Consumer Protection (Jurisdiction of the District Commission, the State Commission, and the National Commission) Rules, 2021.

The Government has notified these rules to prohibit all direct selling entities from promoting pyramid schemes or money circulation schemes, while also providing for a mechanism for redressal of consumer complaints.

What is consumerism?

• Consumerism is a movement that promotes the interests of buyers of goods and services.
• Its main aim is to protect the consumer from unsafe or low quality of products, fraudulent advertising, labeling, packing and business practices that limits competition.

Why consumerism is important?

• Illegal price hike: It is the wholesalers and middlemen who indulge in illegal activities like dumping of goods to create artificial scarcity and raise the prices of commodities which will increase their profits.
• Affects all sections of society: So, consumerism is a national problem affecting every section of the society such as men and women, young or old and youth or child.
• Form of social Action: Hence, consumer protection is a form of social action which will be designed to achieve the well-being of the one or group within a society. There is a need to extend consumerism in India.

What are the Consumer Rights?

Consumer right is an insight into what rights consumer holds when it comes to the seller who provides the goods.

In general, the consumer rights in India are listed below:

(1) Right to Safety

• Means right to be protected against the marketing of goods and services, which are hazardous to life and property.
• The purchased goods and services should not only meet their immediate needs, but also fulfil long term interests.
• Before purchasing, consumers should insist on the quality of the products as well as on the guarantee of the products and services. They should preferably purchase quality marked products such as ISI, AGMARK, etc.

(2) Right to be Informed

• Means right to be informed about the quality, quantity, potency, purity, standard and price of goods so as to protect the consumer against unfair trade practices.
• Consumer should insist on getting all the information about the product or service before making a choice or a decision.
• This will enable him to act wisely and responsibly and also enable him to desist from falling prey to high pressure selling techniques.

(3) Right to Choose

• Means right to be assured, wherever possible of access to variety of goods and services at competitive price. In case of monopolies, it means right to be assured of satisfactory quality and service at a fair price.
• It also includes right to basic goods and services. This is because unrestricted right of the minority to choose can mean a denial for the majority of its fair share.

(4) Right to be Heard

• Means that consumer’s interests will receive due consideration at appropriate forums. It also includes right to be represented in various forums formed to consider the consumer’s welfare.

(5) Right to Seek redressal

• Means right to seek redressal against unfair trade practices or unscrupulous exploitation of consumers. It also includes right to fair settlement of the genuine grievances of the consumer.
• Consumers must make complaint for their genuine grievances. Many a times their complaint may be of small value but its impact on the society as a whole may be very large.

(6) Right to Consumer Education

• Means the right to acquire the knowledge and skill to be an informed consumer throughout life.
• Ignorance of consumers, particularly of rural consumers, is mainly responsible for their exploitation.

Consumer Protection Laws in India

(1) The Consumer Protection Act, 1986

• It enforces rights of consumers and provides for redressal of complaints at the district, state and national level. Such complaints may be regarding defects in goods or deficiency in services.
• The Act also recognises offences such as unfair trade practices, which include providing false information regarding the quality or quantity of a good or service, and misleading advertisements.
• Over the years, there have been challenges in the implementation of the Act.

(2) The Consumer Protection Act, 2019

The latest Act provides a better mechanism to dispose of consumer complaints in a speedy manner and will help in the disposal of a large number of pending cases in consumer courts across the nation.

Key Features

1) Definition of consumer

• A consumer is defined as a person who buys any good or avails a service for a consideration. 
• It does not include a person who obtains a good for resale or a good or service for commercial purpose. 
• It covers transactions through all modes including offline, and online through electronic means, teleshopping, multi-level marketing or direct selling.

2) Rights of consumers

The following consumer rights have been defined in the Act, including the right to:

• be protected against marketing of goods and services which are hazardous to life and property;
• be informed of the quality, quantity, potency, purity, standard and price of goods or services;
• be assured of access to a variety of goods or services at competitive prices; and
• seek redressal against unfair or restrictive trade practices 

3) Establishment of Central Consumer Protection Authority

• The central government will set up a CCPA to promote, protect and enforce the rights of consumers. 
• It is empowered to:
  1. conduct investigations into violations of consumer rights and institute complaints/prosecution,
  2. order recall of unsafe goods and services,
  3. order discontinuance of unfair trade practices and misleading advertisements
  4. impose penalties on manufacturers/endorsers/publishers of misleading advertisements
• The CCPA will have an investigation wing, headed by a Director-General, which may conduct inquiry or investigation into such violations. 

4) Penalties for misleading advertisement

• The CCPA may impose a penalty on a manufacturer or an endorser of up to Rs. 10 lakh and imprisonment for up to two years for a false or misleading advertisement. 
• In case of a subsequent offence, the fine may extend to Rs. 50 lakh and imprisonment of up to five years. 
• CCPA can also prohibit the endorser of a misleading advertisement from endorsing that particular product or service for a period of up to one year.
• For every subsequent offence, the period of prohibition may extend to three years.  

5) Consumer Disputes Redressal Commission

• CDRCs will be set up at the district, state, and national levels. 
• A consumer can file a complaint with CDRCs in relation to: unfair or restrictive trade practices; defective goods or services etc.
• Complaints against an unfair contract can be filed with only the State and National   Appeals from a District CDRC will be heard by the State CDRC. 
• Appeals from the State CDRC will be heard by the National CDRC.  Final appeal will lie before the Supreme Court.

6) Jurisdiction of CDRCs

• The District CDRC will entertain complaints where value of goods and services does not exceed Rs one crore. 
• The State CDRC will entertain complaints when the value is more than Rs 1 crore but does not exceed Rs 10 crore. 
• Complaints with value of goods and services over Rs 10 crore will be entertained by the National CDRC.

7) Product liability

• Product liability means the liability of a product manufacturer, service provider or seller to compensate a consumer for any harm or injury caused by a defective good or deficient service. 
• A manufacturer or product service provider or product seller will be held responsible to compensate for injury or damage caused by defective product or deficiency in services.
• Basis for product liability action:
  1. manufacturing defect
  2. design defect
  3. deviation from manufacturing specifications
  4. Not conforming to express warranty
  5. failing to contain adequate instructions for correct use
  6. service provided-faulty, imperfect or deficient
• To claim compensation, a consumer has to prove any one of the conditions for defect or deficiency, as given in the Act.

(3) Consumer Protection (E-Commerce) Rules, 2020

• E-commerce entities are required to provide information to consumers, relating to return, refund, exchange, warranty and guarantee, delivery and shipment, modes of payment, grievance redressal mechanism, payment methods, and security of payment methods, charge-back options and country of origin.
• These are necessary for enabling the consumer to make an informed decision at the pre-purchase stage.
• These platforms will have to acknowledge the receipt of any consumer complaint within 48 hours and redress the complaint within one month from the date of receipt.
• They will also have to appoint a grievance officer for consumer grievance redressal.
• The Consumer Protection (E-commerce) Rules, 2020 are mandatory and are not advisories.
• Sellers cannot refuse to take back goods or withdraw services or refuse refunds, if such goods or services are defective, deficient, delivered late, or if they do not meet the description on the platform.
• The rules also prohibit the e-commerce companies from manipulating the price of the goods or services to gain unreasonable profit through unjustified prices.

(4) Consumer Protection (Jurisdiction of the District Commission, the State Commission, and the National Commission) Rules, 2021

Pecuniary Jurisdiction

• The Consumer Protection Act, 2019 promulgates a three-tier quasi-judicial mechanism for redressal of consumer disputes namely district commissions, state commissions and national commissions.
• As per the existing provisions of the Act, District Commissions have jurisdiction to entertain complaints where the value of the goods or services paid as consideration does not exceed one crore rupees.
• State Commissions have jurisdiction to entertain complaints where the value of the goods or services paid as consideration, exceeds 1 crore rupees, but does not exceed 10 crore rupees and
• National Commission has jurisdiction to entertain complaints where the value of goods or services paid as consideration exceeds 10 crore rupees.
• But the existing provisions relating to pecuniary jurisdiction of consumer commissions were leading to rising in pendency and delay in disposal of cases.

Changes in Consumer Protection Rules, 2021

• District Commissions shall have jurisdiction to entertain complaints where the value of the goods or services paid as consideration does not exceed 50 lakh rupees.
• State Commissions shall have jurisdiction to entertain complaints where the value of the goods or services paid as consideration exceeds 50 lakh rupees but does not exceed 2 crore rupees.
• National Commission shall have jurisdiction to entertain complaints where the value of the goods or services paid as consideration exceeds 2 crore rupees.

Time for disposal of Complaint

It may be mentioned that the Consumer Protection Act, 2019 stipulates that every complaint shall be disposed within a period of 3 months from the date of receipt of notice by the opposite party where the complaint does not require analysis or testing of commodities and within 5 months if it requires analysis or testing of commodities.

e-Filing of complaint: E-Daakhil Portal

• The Act also provides consumers with the option of filing complaints electronically.
• The Central Government has set up the E-Daakhil Portal, which provides a hassle-free, speedy and inexpensive facility to consumers to conveniently approach the relevant consumer forum.
• E-Daakhil has many features like e-Notice, case document download link & VC hearing link, filing written response by the opposite party, filing rejoinder by complainant and alerts via SMS/Email.
• Presently, the facility of E-Daakhil is available in 544 consumer commissions, which includes the National Commission and consumer commissions in 21 states and 3 UTs.
• So far, more than 10,000 cases have been filed using the E-Daakhil Portal and more than 43000 users have registered on the portal.

Mediation

• To provide a faster and amicable mode of settling consumer disputes, the Act also includes a reference of consumer disputes to Mediation, with the consent of both parties.
• This will not only save time and money for the parties involved in litigating the dispute but will also aid in reducing the overall pendency of cases.

Way Forward

• Misleading ads, tele-marketing, multi-level marketing, direct selling and e-commerce pose new challenges to consumer protection and will require appropriate and swift executive intervention to prevent consumer detriment.
• Arm-twisting of weaker parties: Certain issues such as the appointment of mediators to settle disputes are contentious as this would lead to arm-twisting of the weaker parties and may encourage corruption.
• Need to strengthen CCPA: Addressing these issues is necessary to ensure that the new amendments bring about definitive improvements in the CCPA.
• Need to fill vacancies at the district commission level: The existing vacancies at the district commission level would undermine the effective implementation of the Act.
• Guidelines for celebrity endorsements: Countries such as the UK, Ireland and Belgium have specifically banned celebrity endorsement of unhealthy foods. The impact of such restrictions has been reported to be significant.

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Introduction

The Internet of Things (IoT) can become a game-changer that India needs as this concept is set to disrupt almost every sector in India from smart cities and telecom to manufacturing and mobility. The rapid development in the IoT leads to the starting of the next digital revolution. However, the Internet of Things throws up many challenges like data safety and privacy. So India needs to push ahead with this concept to kick-start the radical development process with the proper regulatory framework in place to govern IoT.

What is the Internet of Things?

• IoT is the network of devices, vehicles, and home appliances that contain electronics, software, actuators, and connectivity which allows these things to connect, interact and exchange data.
• IoT involves extending Internet connectivity beyond standard devices, such as desktops, laptops, smartphones, and tablets to everyday objects.
• These objects may be anything from cell phones, coffee makers, washing machines, headphones, lamps, wearable devices.
• It can also be components of machines, for example, a jet engine of an airplane or the drill of an oil rig.
• Embedded with technology, these devices can communicate and interact over the Internet, and they can be remotely monitored and controlled.
• Thus, it is all about connecting devices over the internet and letting them ‘talk’ to us, applications, and each other.
• However, the Internet of Things doesn’t necessarily have to be connected to the internet; it can also be a network of things.

Advantages of IoT

• Monitor Data: It helps us know the precise quantity of supplies or the air quality in home, it can also provide more data that could not have previously been possible to collect easily. For instance, monitoring the expiration of products will improve safety.
• Ease of Access: Right now, one can easily gain the required information in real-time, from almost any location. It only takes a smart device and an internet connection. Example using Google Maps to see our location, instead of asking a person in real life.
• Speedy Operation: All this data pouring in enables us to complete multiple tasks with amazing speed. For example, IoT makes automation effortless. Smart industries automate repetitive tasks, thus allowing employees to invest their time and effort into more challenging things.
• Adapting to New Standards: As IoT is an ever-changing topic, its changes are minimal compared to the other techs of the high-tech world. Without IoT, it would be complicated for us to keep track of all the latest things.
• Better Time Management: IoT is a clever time-saving tool. We can look up the latest news on our phones during our daily commute, or check a blog about our favourite pastime, purchase an item in an online shop, we can do almost all the things from the palm of our hands.
• Automation and Control: Without human interference, the machines are communicating with each other providing faster and timely output.
• Saving Money: Another main advantage of IoT is saving money. If the cost of the tagging and monitoring machines are less compared with the amount of money saved, this is the reason for the Internet of Things being very widely adopted.
• Allowing the data to be communicated and shared between devices and then translating it into our required way, makes our systems efficient.

Applications of Internet of Things

(1) Daily Lives

• There can be several IoT examples in our day-to-day lives.
• For instance, a person returning home after his office hours can call his coffee-maker to make the coffee ready when he reaches home.
• IoT can be used to water the plants of the garden whenever the moisture level falls below a certain limit.
• We can utilize IoT to convert a normal home into a smart home. It can be used in energy efficiency in homes and office places.

(2) Industry

• IoT’s effects may vary from industry to industry based on its utilization.
• In the manufacturing sector, IoT can be utilized to enhance performance, minimize human-induced errors and consequently improve the overall quality of the manufactured products.
• In the IT sector, utilization of IoT can result in improvement in services, development of more advanced software and digital services, etc.

(3) Agriculture

• IoT can be utilized to collect data about rainfall, soil moisture, soil nutrients, pest infestation, etc.
• It can assist in making informed decisions to increase agricultural production as well as reducing the risks of crop failures etc.
• It can help make agriculture profitable with better price-discovery for farmers through smart techniques.

(4) Healthcare

• Medical practitioners and doctors can use IoT to remotely monitor the patient’s health.
• Smart beds can detect when the patient is trying to get up, his abnormal activities, etc.
• Specialized sensors for senior citizens can be developed with the help of IoT.
• Wearable heart monitors can help monitor the heartbeats, blood pressure of patients, etc.
• It can revolutionize telemedicine applications.

(5) Media

• Corporate media houses can utilize IoT to monitor consumer habits for the purpose of behavior targeting = display consumer-specific advertisements. They can utilize Big Data and Data Mining for this purpose.

(6) Transportation

• IoT can be used in driverless cars and improve intra-vehicular communication to reduce accidents and traffic jams etc.
• We can use it for electronic toll collections, smart parking, smart traffic management, etc.
• IoT can be useful in logistics, fleet management, safety assistance, etc.

(7) Smart cities

• IoT can be utilized in solid waste management systems to improve the cleanliness of the city.
• Smart meters and power grids can improve energy efficiency and reduce transmission loss.
• IoT can be used to track the air pollution levels in the cities and give a warning when it breaches the prescribed safety levels.
• IoT can also be used to develop smart transportation systems to minimize congestion in the cities.

(8) Smart Retail

• IoT provides an opportunity to retailers to connect with the customers to enhance the in-store experience. Interacting through Smartphones and using Beacon technology can help retailers serve their consumers better.
• They can also track consumers’ paths through a store and improve store layout and place premium products in high traffic areas.

(9) Energy Engagement

• Power grids of the future will not only be smart enough but also highly reliable.
• The basic idea behind the smart grids is to collect data in an automated fashion and analyze the behavior or electricity consumers and suppliers for improving efficiency as well as the economics of electricity use.
• Smart Grids will also be able to detect sources of power outages more quickly and at individual household levels like a nearby solar panels, making possible distributed energy systems.

What is the case with India?

• IoT is the natural evolution of the internet and has many benefits including boosting global economies, improving public utilities, and increasing efficiencies.
• Many of our global counterparts have already begun reaping the rewards of investing in IoT-based infrastructure.
• The Indian government outlined a plan to leverage IoT as part of the Digital India mission.
• The Indian IoT market is expected to reach $15 billion by 2020 and constitute 5% of the global market.
• Investing in IoT will boost our economy on par with global leaders and it will also bring in investments, create jobs and improve Indian public infrastructure

What are the measures taken by the government to promote IoT?

• The central government launched a plan to utilize IoT as part of the Digital India mission.
• The government came up with the National Digital Communications Policy 2018 to satisfy the modern realities of the telecom such as 5G technology, IoT, Machine to Machine (M2M) communication, etc.
• The government also allowed 100% FDI in the telecom sector. This will help in the development and growth of the IoT.
• Department of Electronics and Information Technology (DeITY) has published a draft policy for IoT. The target is to establish an IoT market of USD 15 billion by 2020 and having a share of 5-6% in the global IoT industry.

Challenges with the IoT

• Data Breach: Having access to data is excellent. Unfortunately, our personal data is more exposed.
• Dependence on Technology: IoT is mainly dependent on the internet connection. When there is none, it can’t be used.
• Complexity in Operation: IoT may seem to be managing tasks with ease, a lot of complex operations are done behind it. If by mistake the software makes a wrong calculation, this will affect the rest of the process.
• Our Safety: As all the household appliances, industrial machinery, public sector services and many other devices all are connected to the Internet, a lot of information is available on it. This information is prone to attack by hackers. It would be very disastrous if private and confidential information is accessed by unauthorized intruders.
• Inter Compatibility: As devices from various manufacturers will be interconnected to each other, the issue of compatibility in tagging and monitoring increases. This disadvantage can be overcome if manufacturers make a common standard, but there is still a possibility that the technical problems may still persist.
• Lesser Employment of Menial Staff: The uneducated workers and helpers may lose their jobs as an effect of automation of daily activities. This can lead to unemployment in the society.
• Technology Takes Control of Life: Our lives are increasingly controlled by technology and will be dependent on it. The younger generation is already addicted to technology for every little work to be done.

How is IoT impacting the digital transformation of education?

• Tracking movement: Integrated systems of IoT, which automatically transmit information about the child boarding the bus, the bus reaching the school, and the child entering the school premises, can be available to both parents and teachers via an app and automated messages.
• Attendance system: Teachers and faculty members need not waste time on roll call. Instead, the student’s identity card automatically communicates with the sensors in the classroom and marks attendance.
• Automatic sharing: Taking notes and marking critical points is an integral part of a student’s class activity. But, with IoT, all the contents on the black/whiteboard is automatically converted into a portable document and shared over email.
• Session capture: An IoT environment automatically captures a classroom session (audio and video) and puts it on a shareable drive. This can be accessed by those students who missed the class. This way learning becomes both inclusive and accessible.
• Ensuring security: With COVID-19 still doing the rounds, an IoT-based system integrated with CCTVs can scan the campus and spot people who are not wearing masks. The coordinates can be sent as an SMS and an email to the administrative authority for further action.
• Read and translate: IoT can also be used to quickly scan editable text from books, papers, and other documents directly into a phone, tablet or computer and translate into more than 40 languages.

Way forward

• IoT makes life easier at the cost of privacy and hence Data Protection Bill can do a lot well in ensuring the privacy of an individual.
• Policy-makers, regulators, device manufacturers, supporting industries, and service providers will all have to join hands in creating a safer space online.
• In India, the NDCP (National Digital Communications Policy) brought alignment from critical stakeholders to advance India’s infrastructure and security around digital communications.
• The draft IoT policy seeks to establish committees to govern and drive IoT-specific initiatives. It is not yet clear how much access to personal data these committees get and how their actions will be monitored.
• The Justice Srikrishna Committee had recommended some provisions for personal data protection including a consumer’s right to information, consent, and right to request companies to erase their data if preferred.

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Introduction

India’s growing economic strength in recent years has seen it adopting its foreign policy to increase its global influence and status and to meet the challenges of the 21st century. In the past few years, New Delhi has expanded its strategic vision, most noticeably in Asia, and has broadened the definition of its security interests. As a result, India-Japan relations have undergone a paradigmatic shift which has seen an attempt to build a strategic and global partnership between the two countries.

Background of India-Japan Ties

[I] Ancient times

• The friendship between India and Japan has a long history rooted in spiritual affinity and strong cultural and civilization ties dating back to the visit of Indian monk Bodhisena in 752 AD.
• The people of India and Japan have engaged in cultural exchanges, primarily as a result of Buddhism, which spread indirectly from India to Japan, via China and Korea.

[II] India’s freedom movement

• Independence movement: The leader of the Indian Independence Movement, Rash Behari Bose was instrumental in forging India–Japan relations during India’s independence movement.
• During World War II, The British occupiers of India and Japan were enemies during World War II.  Subhas Chandra Bose used Japanese sponsorship to form the Azad Hind Fauj or Indian National Army (INA).

[III] Present times

• Pokhran nuclear test: In 1998, Japan imposed sanctions on India following the Pokhran-II, an Indian nuclear weapons test, which included the suspension of all political exchanges and the cutting off of economic assistance. These sanctions were lifted three years later.
• Both nations share core values of democracy, peace, the rule of law, tolerance, and respect for the environment in realising pluralistic and inclusive growth of the region

Post cold war relations

• The end of cold war and the collapse of the Soviet Union, and the inauguration of economic reforms in India seemed to mark the beginning of a new era in Indo-Japanese relationship.
• India’s “Look East Policy” posited Japan as a key partner.
• Japan being the only victim of nuclear holocaust, Pokhran –II tests of India in May 1998 brought bitterness in the bilateral relations where Japan asked India to sign NNPT.
• Tokyo’s relation with India showed signs of an upswing when Prime Minister Yoshiro Mori came on an official 5 day visit to India in August 2000.

Recent developments in India-Japan Relationship

(1) India-Italy-Japan trilateral partnership

• Recently, Italy has also begun to signal its intention to enter the Indo-Pacific geography.
• It has done so by seeking to join India and Japan in a trilateral partnership.
• Italy has become more vocal on the risks emanating from China’s strategic competitive initiatives.
• On the Indian side, there is great interest in forging new partnerships with like-minded countries interested in preserving peace and stability in the Indo-Pacific.

(2) 2+2 Ministerial Dialogue

• The 2+2 ministerial dialogue is seen as an upgrade of the meeting between foreign and defense secretaries of the two countries, the first round of which took place in 2010.
• The ministerial level meeting was held after a decision to institute a Foreign and Defense Ministerial Dialogue was taken during the 13th India-Japan Annual Summit held in Japan in 2018.
• 2+2 meeting aimed to give further momentum to their special strategic partnership, particularly in the maritime domain.

(3) Supply Chain Resilience Initiative

• Recently India, Australia and Japan formally launched the Supply Chain Resilience Initiative. The initiative was launched to counter the dominance of China in the Global Supply Chain.
• It aims to prevent disruptions in the supply chain as seen during COVID-19 pandemic.
• The initiative will mainly focus on diversification of investment and digital technology adoption.

(4) Other MEA led-bilateral dialogues

• The Act East Forum, established in 2017, aims to provide a platform for India-Japan collaboration under the rubric of India’s “Act East Policy” and Japan’s “Free and Open Indo-Pacific Vision”.
• At the Second meeting of the Act East forum, both sides agreed to focus on expanding of Japanese language in North East, training of caregivers under Technical Intern Training Program (TITP), capacity building in area of bamboo value chain development and Disaster Management.
• The inaugural India-Japan Space Dialogue was held in Delhi for enhancing bilateral cooperation in outer space and information exchange on the respective space policies.

(5) Currency Swap Agreement

• Japan and India have entered into a $75-billion currency swap arrangement that will bolster the country’s firepower as it battles a steep drop in the rupee’s value.
• A currency swap is an agreement between two parties to exchange a series of cash flows denominated in one currency for those denominated in another for a predetermined period of time.
• The deal will help the two countries to swap their currencies for U.S. dollars to stabilise the rupee which has witnessed the steepest fall in recent years.

Areas of cooperation

(1) Economic and Commercial relations

• Japan is regarded as a key partner in India’s economic transformation.
• Japan’s interest in India is increasing due to a variety of reasons including India’s large and growing market and its resources, especially the human resources.
• India’s bilateral trade with Japan stood at US$ 16.95 billion in FY 2019-20. India’s imports during this period were US$ 12.43 billion and exports were US$ 4.52 billion.
• India’s primary exports to Japan are petroleum products, chemicals, elements, compounds, non-metallic mineral ware, fish & fish preparations, metalliferous ores & scrap, clothing & accessories, iron & steel products, textile yarn, fabrics and machinery etc.
• India’s primary imports from Japan are machinery, electrical machinery, iron and steel products, plastic materials, non-ferrous metals, parts of motor vehicles, organic chemicals, etc.

Investment and Official Development Assistance (ODA)

• From 2000 until September 2020, the Japanese investments in India cumulatively stands at around US$ 34.152 billion (Japan ranks fifth among the largest source of investment).
• Japanese FDI during FY 2019-2020 increased to US$ 3.226 billion compared to US$ 2.96 billion in FY 2018-19.
• The number of Japanese companies registered in India stands at more than 1460. Similarly, number of Indian companies operating in Japan is also increasing, with the number now over 100.
• The Mumbai-Ahmedabad High Speed Rail, Western Dedicated Freight Corridor (DFC), Delhi-Mumbai Industrial Corridor (DMIC) with twelve industrial townships, Chennai-Bengaluru Industrial Corridor (CBIC) are some mega project with Japanese cooperation on the anvil.

(2) Security and Defence

• India-Japan Defence and Security partnership has evolved over the years and today forms an integral pillar of bilateral ties.
• QUAD: Formed in 2007 and revived in 2017 The Quadrilateral Security Dialogue (QSD, also known as the Quad) is an informal strategic dialogue between the United States, Japan, Australia and India.
• The dialogue was paralleled by joint military exercises of an unprecedented scale, titled Exercise Malabar.
• The diplomatic and military arrangement was widely viewed as a response to increased Chinese economic and military power.
• In spite of the pandemic, complex exercises in all domains were conducted including MALABAR 2020, Japan India maritime exercise (JIMEX 2020) and PASSEX, showcasing the trust and interoperability between the navies.

(3) Strategic

• After the cold war Japan looked out to extend its diplomatic options beyond US and India became the best option possible.
• 2+2 dialogue is taking place between the foreign and defence ministers of the two countries to deepen the global partnership.
• It is also agreed to establish the India–Japan–United States trilateral dialogue on regional and global issues of shared interest.
• Both countries also reiterated their determination to work together under the UNFCCC, WTO, etc.
• Japan and India are working together to realize the reform of Security Council at the earliest.
• There is a beginning of India-Japan-Australia trilateral dialogue to evolve an open, inclusive, stable and transparent economic, political and security architecture in the indo-pacific region.

(4) India-Japan Digital Partnership (IJDP) and Start-up Hub

• The MOC on Digital Partnership envisaged cooperation in five sub-areas:

1) Start-up Initiative

2) Corporate Partnership

3) ESDM promotion

4) Digital talent exchange

5) R&D Cooperation

6) Security related strategic collaboration

(5) Disaster Risk Reduction

• An Agreement on joint research in the field of Earthquake Disaster Prevention was signed between Fujita Corporation and Indian Institute of Technology, Roorkee (IIT-R).

(6) Skill Development

• India-Japan MoC signed in 2016 to train 30,000 shop floor leaders over 10 years thereby also contributing to India’s flagship initiatives such as “Skill India” and “Make in India”.
• Japanese companies have established 13 Japan-India Institute of Manufacturing (JIM) in India and 5 Japanese Endowed Courses (JEC) in Indian Engineering Colleges.

(7) Health-care

• In view of the similarities and synergies between the goals and objectives of India’s AYUSHMAN Bharat Programme and Japan’s AHWIN, both sides consulted with each other to identify projects to build the narrative of AHWIN for AYUSHMAN Bharat.
• Japan is supporting India to contain COVID-19 and mitigate its adverse socioeconomic impacts by extending budgetary support to the GoI and implementing emergency response programs for the health sector.

(8) Education Cooperation

• As on December 2020, there were over 300 academic and research partnerships (including student exchanges) between more than 70 universities/institutes of Japan and around 105 universities/institutes of India.
• These partnerships range from liberal arts to management & business studies, legal studies, international studies, linguistics, ayurveda, STEM including fast emerging frontier technologies.
• The students & teacher exchange and scholarship programmes, especially short-term, are enabling a large number of Indian students and teachers to visit and experience Japan and vice versa.

(9) S&T Cooperation

• Bilateral S&T cooperation was formalized through an Inter-Governmental Agreement signed in 1985.
• Recent initiatives – three India-Japan Joint Laboratories in the area of ICT (AI, IoT and Big Data) and initiation of Dept. of Science and Tech (DST)-Japan Society for the Promotion of Science Fellowship Programme for the young researchers.

(10) Energy

• The two sides have launched an Energy Dialogue to promote cooperation in the energy sector in a comprehensive manner.
• The areas of cooperation include oil and natural gas, coal, electric power, renewable energy sources, energy efficiency and other relevant sectors.
• In 2015, India and Japan reached on substantive Agreement on Cooperation in the Peaceful Uses of Nuclear Energy. India becomes the first non NPT signed country to do so.

What lies at the fulcrum of ties?

• First of all, Japan is the most mature economy in this region. In terms of maturity, sophistication, and experience in international economic engagements, Japan excels every other country of the Indo-Pacific region, excluding the United States.
• Its technological marvels, business strategies, and management skills are second to none.
• Japan rarely hits the international headlines and it is actually Japan’s feebleness in the world of political advertisements.
• Japan sooner than later will be a leading player in the political economy as well as security fields of the Indo-Pacific region.
• Its aging population is a major concern and Japan very well acknowledges this fact. While increasing the domestic birth rate will always be important, it is a position to devise a new immigration policy that would largely benefit Indians.
• Japan has the distinction of being the only foreign power that has been allowed to undertake infrastructure and other projects in India’s sensitive northeast.
• Finally, Japan has never been an adversary of India and the current global as well as regional distribution of power and strategic scenario necessitate a deeper and expansive Indo-Japan strategic teamwork.

Way forward

• Taking advantage of its considerable assets — the world’s third-largest economy, substantial high-tech skills, and a military freed of some legal and constitutional constraints — Japan is largely perceived as a natural ally to India.
• At a time of global geopolitical flux, the two are among the important countries that have taken up the baton to champion freedom, international norms and rules, inclusivity, and free and fair trade.
• If Japan and India continue to add concrete security content to their relationship, their strategic partnership could potentially be a game-changer in Asia.
• The emphasis on boosting trade and investment must be balanced with greater strategic collaboration.
• Both countries can contribute to the larger effort to build strategic equilibrium, power stability and maritime security in the Indo-Pacific.
• India and Japan have forged a special relationship, which is set to strengthen and deepen in the coming years.