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Category: Burning Issues

  • [Burning Issue] Should India have Two Time Zones?

    http://www.insightsonindia.com/wp-content/uploads/2018/10/editorial-3.jpg

    Background

    • The time difference between the westernmost part of India and the easternmost point is approximately two hours, the effect of which is that the sun rises and sets much earlier than it does in the rest of the country.
    • Most Indians are not particularly worried about Indian Standard Time (IST), except for those who live in the Northeast where the sun rises around 4 a.m. in summer and gets dark well before 4 p.m. in winter.

    TIME IS MAINTAINED BY THIS METHOD

    • If lines of longitude are drawn precisely a degree apart, they will divide the Earth into 360 zones/ imaginary lines called longitudes or meridians running vertically between the poles.
    • Because the Earth spins 360° in 24 hours, a longitudinal distance of 15° represents a time separation of 1 hour, and 1° represents 4 minutes.

    NOTES

    • The geographic “zero line” runs through Greenwich, London. 
      It identifies GMT, now known as Universal Coordinated Time (UTC), which is maintained by the Bureau of Weights and Measures (BIPM) in France.
    • Indian Standard Time, maintained by CSIR-NPL, is based on a line of longitude that runs through Mirzapur in UP (Centre for measuring time by the Indian government).
    • At 82°33’E, the line is 82.5° east of Greenwich, or 5.5 hours (5 hours 30 minutes) ahead of UCT. While India follows one IST, the United States follows several time zones across its breadth.

    Context: A new report advocating 2 time zones in India

    • A proposal for two time zones has come from India’s national timekeeper itself.
    • Scientists at the Council of Scientific & Industrial Research’s National Physical Laboratory (CSIR-NPL) have now argued that IST should be done away with at the Chicken’s Neck.
    • There is a request to change the temporal modalities of the Indian nation-state from its official time-keeper.

    Why there is a necessity of two time zones:

    • Over the years, various citizens and political leaders have debated whether India should have two separate time zones.
    • The demand is based on the huge difference in daylight times between the country’s longitudinal extremes, and the costs associated with following the same time zone.
    • Those arguing against the idea, on the other hand, cite impracticability particularly the risk of railway accidents, given the need to reset times at every crossing from one time zone into another.
    • Legislators, activists, industrialists and ordinary citizens from the Northeast have often complained about the effect of IST on their lives, and pursued the issue of having a separate time zone with the Central government, without much success.
    • In the Northeast, the sun rises as early as four in the morning and in winter it sets by four in the evening. By the time government offices or educational institutions open, many daylight hours are already lost.
    • In winter this problem gets even more accentuated and the ecological costs are a disaster with much more electricity having to be consumed.

     THE ISSUE OF DAYLIGHT

    • There is also the practice in several countries, of “Daylight Saving Time” (DST), wherein the time in summer is advanced (or the clocks put forward) by one hour and retracted during winter.
    • This enables people to enjoy sunlight longer in summer and avoid the inconveniences of late sunrises and early sunsets during winter.
    • The time difference between the westernmost part of India and the easternmost point is approximately two hours, the effect of which is that the sun rises and sets much earlier than it does in the rest of the country.
    • Most Indians are not particularly worried about Indian Standard Time (IST), except for those who live in the Northeast where the sun rises around 4 a.m. in summer and gets dark well before 4 p.m. in winter.

    Problems of DST:

    • If we were to introduce DST in India, the inconvenience of time adjustment during summer and winter months would involve the whole country, happening twice a year, with marginal benefits.
    • The possibilities of rail accidents would still be high. Even in the U.S. and Canada, road accidents increase discernibly in the days immediately following the change.
    • Daylight saving time, this small time shift can significantly raise the risk of health-related issues.
    • A 2016 study found that the overall rate for stroke was 8% higher in the two days after daylight saving time. Cancer victims were 25% more likely to have a stroke during that time, and people older than 65 were 20% more likely to have a stroke.

    Possible Impact of change in time zones:

    • Northeast India would move an hour ahead, increasing the region’s productive, daylight hours and the country’s potential energy savings could amount to a whopping 20 million kWh a year.
    • Offices could open sooner after sunrise, and perhaps workers could even savour the last dregs of dusk as they trudge towards home or their desired form of recreation.
    • Biomedical research has consistently pointed to the physical and psychological benefits of aligning circadian (sleep) rhythms to the sun’s rising and setting.

    Problems of different time zones in India:

    India has a huge population; if the country were divided into two time zones, there would be chaos at the border between the two zones. It would mean resetting clocks with each crossing of the time zone.

    There is scope for more dangerous kinds of confusion.

    • Railway signals are not fully automated and many routes have single tracks.
    • Trains may meet with major accidents owing to human errors. Just one such accident would wipe out any benefits resulting from different time zones in the country.

    Partitioning the already divided country further into time zones may also have undesirable political consequences. Moreover, our research shows that energy saving from creating two time zones is not particularly large.

    While there is merit in the argument, the potentially adverse consequences of introducing a new time zone within the country are many.

    For Instance, Not forgetting the fact that a country like Russia has as many as nine time zones across the contiguous territory, having to cope with the zones and to be forced to reset the watch each time you need to cross a domestic line could be complicated.

    With a time difference of one hour in the mornings and in the evenings, there would be nearly 25% less overlap between office timings in the two zones. This could be important for banks, offices, industries and multinational companies which need to be constantly interconnected.

    This will be further detrimental to productivity and to the interests of the eastern region.

    There is already a sense of alienation between the relatively prosperous and industrialised western zone and the less developed eastern zone. The people in the Northeast sense a distance from the mainland and a separateness in clock time may accentuate it.

    Having a separate time zone for the eastern region will provide no energy or other benefits to the rest of the country.

    Moreover, India will continue to be in off-set time zones, five and a half hours in the west and six and a half in the eastern region ahead of.

    Hurdles in implementation:

    • A long-standing argument against doing away with IST has been it would confuse the railway infrastructure.
    • In a country with so many diversities to amalgamate into a proverbial unity, asking the people of the Northeast to wake up an hour earlier might lead to yet another point of difference.

    Alternative to the present proposal:

    • One proposal is to introduce neither time zones nor DST but to advance IST by half an hour to being six hours ahead of GMT, once and permanently.
    • Such a suggestion has been made before, but until now no one has computed the energy savings that would accrue as a result using a correct model and dependable data.
    • This proposal of advancing IST by half an hour avoids the problems apprehended in the other two proposals (of time zones and DST) but provides maximum energy saving during evening hours when the utilities fail to supply continuous power

    Conclusion:

    • It is now time to initiate a process of consultation to consider all sides of the question afresh.
    • What might be seriously examined is a proposal of some researchers, including those from the National Institute of Advanced Studies in Bangalore and Scientists at the Council of Scientific & Industrial Research’s National Physical Laboratory (CSIR-NPL), to set the IST forward by half an hour so that it is six hours ahead of Universal Coordinated Time.
    • This will mean advancing the point of reckoning at 82.5 degree East to 90 degrees East, which will fall at a longitude along the West Bengal-Assam border.
    • That should go some way in meeting Assam’s demand, and help avoid potential grievances from northwestern India about corresponding inconveniences that an advancing by one full hour could entail for it in terms of late sunrise time.
  • [Burning Issue] India-Russia Relations- “Special and Privileged Strategic Partnership”

    CONTEXT

    On October 5, Russian President Vladimir Putin came to hold the India-Russia annual summit meeting with Indian Prime Minister Narendra Modi in New Delhi

    Introduction

    •  The friendship between India and Russia has stood the test of time, and that the ties would continue to scale new heights. Traditionally, the Indo-Russian strategic partnership has been built on five major components: politics, defence, civil nuclear energy, anti-terrorism co-operation and space.
    • Though the two nations have had a longstanding partnership, it has been passing through a turbulent phase even as this relationship was elevated to Special and Privileged Strategic Partnership in 2010.

    Russia needs India as:

    • A market for its goods to bypass Western sanctions imposed after its power push in Ukraine.
    • The forthcoming Transatlantic Trade and Investment partnership driven by the US will also force Russia to eye markets beyond Europe. India is a natural partner.
    • Despite its renewed friendship with China, Russia will soon find itself in competition with it as Beijing regards itself as the new G2 along with the US.
    • India can help provide the multi-polarity that Russia fiercely seeks.
    • Even as India is diversifying its defense trade partners, Russia still dominates the Indian defense inventory to the tune of about 70 per cent.

    India needs Russia because

    • It can meet its abundant energy requirements at a cost-effective price.
    • Despite expanding its defence purchases from the US, Israel and Europe, India still needs to collaborate with Russia to master future technology including for space.
    • It improves India’s bargaining power when it negotiates arms sales with the West.
    • Russia can be a major market for Indian industry such as pharmaceuticals, manufactured goods, dairy Products, bovine meat and frozen seafood.
    • Geopolitically, Russia continues to be a balancing force against any designs China and Pakistan may have in our region.
    • Russia remains the only partner that is still willing to give India critical technologies, such as a nuclear submarine.

    Economic Ties

    • Russia-India trade has not grown to great heights despite the encouragement of both states.
    • Recently India and Russia decided to institutionalize the CEO’s Forum and agreed to liberalize business travel which will help boost bilateral trade  Russia sees India – one of the fastest growing economies in the world – as a country that could alleviate Russia’s economic problems.
    • Make in India initiative would welcome Russian companies from the public and private sectors.
    • Russian firms have shown a willingness to invest in India in construction, major infrastructure projects such as dedicated freight corridors and industrial clusters, smart cities, and engineering services, sharing technologies and skills.
    • Indian companies are exploring major investment options in Russia, especially in natural resources∙ such as coal, fertilizers, hydrocarbons, minerals, and rare earth metals Trade and investment relations are not up to the mark and this needs improvements.

    Energy Ties

    • According to the International Energy Agency, India will cross Japan as the world’s third largest oil user this year, and is expected to have the highest rate of growth of crude demand globally through 2040.
    • India has sought to establish a strong, long-term energy partnership with Russia. While some important deals like the Sakhalin oil and gas project have been a success.
    • The sale of a 98% stake in Essar Oil to a consortium led by Russian state-owned oil giant Rosneft is significant step in the process of deleveraging the balance sheets of Indian corporate.
    • The Russia-India investments in the oil and gas sector and exports to third countries need to be energised.
    • Russia is an important partner in peaceful uses of nuclear energy and it recognizes India as a country with advanced nuclear technology with an impeccable non-proliferation record.
    • Kudankulam Nuclear Power Plant (KKNPP) is being built in India with Russian cooperation.
    • The Rooppur project is the first initiative under an Indo-Russian deal to undertake atomic energy projects in third countries and it will also be the first time Indian firms will take part in such a project abroad.

    Political Ties

    • New Delhi needs Moscow’s support in the former’s bid for a permanent seat on the UN Security Council
    • The Russians have backed the Indian position on Kashmir.
    • India and Russia are engaged in several multilateral efforts that are greatly favoured by Russia such as the BRICS and the Shanghai Cooperation Organisation.
    • Annual Summit meeting is the highest institutionalized dialogue mechanism under the Strategic Partnership

    Defence Ties

    • India-Russia military-technical cooperation has evolved from a simple buyer-seller framework to one involving joint research, development and production of advanced defence technologies and systems. Eg. BrahMos Missile System.
    • The two countries also hold exchanges and training exercises between their armed forces annually. Eg. Peace Mission 2018 was held in Chebarkul, Russia.
    • Indian government recently announced the purchase of five S-400 supersonic air defense systems from Russia, costing around $6 billion.
    • Recent defense agreements have sent a strong message that New Delhi continues to view relations with Moscow an indispensible element of India’s foreign policy.
    • India and Russia agreed to strengthen the defense partnership in line with the “Make in India” program, thereby developing a strong defense manufacturing base in India
    • The boost to defense engagement will also help India contain the growing engagement between Russia and Pakistan.

    Space Cooperation  

    • India-Russia cooperation in the field of peaceful uses of outer space dates back to about four decades.
    • 2015 marks the 40th anniversary of the launch of India’s first satellite “Aryabhatt” on a Russian launch vehicle ‘Soyuz.’
    •  In June 2015, the space agencies have signed a MoU on expansion of cooperation in the field of the exploration and use of outer space for peaceful purposes.
    • An agreement was signed between C-DAC and GLONASS for cooperation in technologies based on satellite navigation.

    Issues of terrorism  

    • Counterterrorism is another area where both countries find a convergence of interest. Both countries strongly condemned terrorism in all its forms, stressing the need for an effective∙ global effort in dealing with the terrorist menace.
    • They also called for the elimination, once and for all, of all terrorist “safe havens,” presumably referring to Pakistan.
    • India and Russia also share concerns about the aggravation of the security situation in Afghanistan, including along its borders.
    • India openly shared Russia’s concerns over developments in Syria.
    • India’s stance on Syria will certainly help cement its ties with Russia countering the earlier feeling that India was not coming forward to support Russia in difficult times.

    Cultural Cooperation  

    • There is a strong tradition of Indian studies in Russia. Apart from Hindi, languages such as Tamil, Marathi, Gujarati, Bengali, Urdu, Sanskrit and Pali are taught in Russian Institutions.
    • There is general interest among Russian people in Indian dance, music, yoga and Ayurveda.
    • There are regular cultural initiatives to promote people-to-people contacts between India and Russia.
    • The President of India inaugurated the Year of Indian Culture ‘Namaste Russia’ in Moscow on 10 May 2015.

     Russia-China-Pakistan Nexus and its impact on India-

    • Even as India is trying to stabilise its defence ties with Russia, there are growing concerns in New Delhi about Russia’s increasing tilt towards Pakistan as it seeks to curry favour with China.
    • Moscow had historically supported New Delhi at the UNSC by repeatedly vetoing resolutions on the Kashmir issue. Today, however, there is a change in how Moscow views its regional priorities in South Asia.
    • In a significant development, the joint declaration issued at the end of the first-ever six-nation Speaker’s Conference in Islamabad held in December 2017 supported Pakistani line on Kashmir.
    • This declaration signed by Afghanistan, China, Iran, Pakistan, Russia and Turkey underscored that “for ensuring global and regional peace and stability, the issue of Jammu and Kashmir needs peaceful resolution by Pakistan and India in accordance with UN Security Council resolutions.”
    • During his visit to New Delhi last year, Russian foreign minister Sergei Lavrov had publicly called on India to join China’s Belt and Road initiative and hoped that New Delhi will find a way out to benefit from the mega connectivity project without sacrificing its position on the issues flagged by it.
    • Sino-Russian relationship has grown to an extent where the two are now participating in joint military exercises such as the recently concluded, Vostok-2018, underscoring the rapidly evolving nature of this relationship and a fluid global strategic environment. Both are now more unified than ever in posing a challenge to the US-led global order.
    • New Delhi has long maintained that it needs a close relationship with Moscow so that the Beijing-Moscow relationship could be dented. But India’s Russia outreach seems to have had a rather insignificant impact so far on the Russia-China dynamic.
    • Russia is also reaching out to Pakistan despite Indian reservations and is changing its tune on the Afghanistan issue. It is now a strong votary of negotiating with the Taliban and has given short shrift to Indian reservations in this regard.

    Strain in the relationship 

    India, of course, has a long-standing relationship with Russia but that is undergoing a shift in light of rapidly evolving geopolitical realities.

    • The first concerns the rapidly expanding ties between India and USA, which started with the India-US nuclear deal in 2008.
    • The second concerns the growing defence relationship between India and the USA.
    • Russia’s decision to supply Pakistan with the Mi-35 Hind attack helicopters has alarmed the Indian defence establishment.
    • The Russia-Pakistan joint exercises raise many questions
    • India having its own military exercises with the U.S. and has signed logistics agreements which can eventually give the U.S. access to Indian naval bases.
    • Russia had proposed a Russia-India-China (RIC) forum. India is hesitant about this because of the unresolved issues with China.

    The need of the Hour

    • As India resets its engagement with China and as Russia adjusts to its growing isolation in the western world, time has come for renewed Indo-Russian engagement.
    • For a relationship that largely relies on defence and where the economic underpinnings are lagging, the need of the hour should be to have candid conversations about the current state of play in the relationship.
    • India should pursue the proposed Free Trade Agreement with the Eurasian Economic Union and seek to play a more active role in the Shanghai Cooperation Organisation as a member.
    • Need to give impetus to St. Petersburg declaration, there was a reference to India and Russia setting up an “energy corridor”.

    HIGHLIGHTS of the 19th Indo-Russian annual bilateral summit

    S-400 Triumf Surface to Air Missiles (SAM)

    • Russia providing state of the art surface to air missile system, S-400 Triumf, to India has been the biggest takeaway. Besides the S-400 Triumf deal, India and Russia reaffirmed their commitment to enhancing military cooperation.

    Space Exploration

    • A crucial MoU was signed between the Indian Space Research Organization (ISRO) and the Federal Space Agency of Russia ‘ROSCOSMOS’ with respect to joint activities in the field of human spaceflight programme Gaganyaan.
    • Russia has also agreed to set up data collection ground stations for India’s recently developed navigation system NaVIC.
    • The two sides also agreed to develop cooperation on BRICS remote sensing satellite constellation.

    Cochin Shipyard pact with Russia to boost water transport

    • India’s Cochin Shipyard signed a pact with Russian firm United Shipbuilding Corporation to boost water transport. As per the pact, the Russian shipbuilding company will provide the technical support to develop advanced vessels suitable for inland waterways and coastal transportation.

    Railways

    • A memorandum of cooperation (MoC) signed between the Ministry of Railways and the Russian Railways.
    • It includes the implementation of a ‘speed-upgradation project’ in the Nagpur-Secunderabad section, installation of a single traffic-control centre for efficient management of rail traffic at the local level, efficient practices in freight and cargo operations, development of multi-modal terminals and a mutual exchange of the advanced technologies used by the two countries.
    • An additional MoU was also signed between the two countries for the cooperation in transport education & to organise educational transport seminars jointly.

    Agriculture

    • The Russian Direct Investment Fund (RDIF), Indian Potash Ltd and producers of phosphate-containing fertilisers PhosAgro announced joint investments in mineral fertiliser production in Russia and India.
    • As per the agreement, PhosAgro has agreed to supply a maximum of 2 million tonne (MT) during 2019-2021 which is estimated to have a potential value of $1 billion.

    Economy

    • The two countries reviewed the progress on the achievement of the objective to increase inter-depending investment to $30 billion by the year 2025.
    • Russia and India have signed the MoU between National Small Industries Corporation of India and the Russian Small and Medium Business Corporation for boosting the economies through cooperation at a micro level.
    • President Putin invited India to invest in the Russian Far Eastern region with India welcoming the decision to open an office of the Far East Agency in Mumbai.
    • The Indian delegation, participated in the Eastern Economic Forum in Vladivostok in September 2018.

    Agreement on consultation between the foreign ministries of Russia and India

    • A ‘Protocol for Consultations between the Ministry of Foreign Affairs and Ministry of External Affairs (India)’ was signed for the period 2019-2023. This was undertaken with an effort to execute a comprehensive policy vis-a-vis international relations of the two countries.

    Conclusion  

    India-Russia relationship is passing through an interesting phase. There are bilateral challenges that need to be overcome, but the global environment has provided opportunities to New Delhi and Moscow to re-calibrate their ties. It is up to the political leadership of the two nations to rise to the occasion.

  • [Burning Issue] Li-Fi Technology

    Explaining Li-Fi

     

    • Light Fidelity or Li-Fi is a technology for wireless communication between devices using light to transmit data and position.
    • It is based on visible light communication.
    • In its present state only LED lamps can be used for the transmission of visible light.

    Components

    The main components of this communication system are :

    • LED Bulb : A high brightness white LED which acts as a communication source.
    • A Silicon photo-detector – It shows a good response to the visible wavelength region and serves as the receiving element.

    Working of Li-Fi

    • A lamp fitted with an LED with signal processing technology stream data embedded in its beam at ultra-high speed to its photodetector.
    • A receiver dongle then converts the tiny changes in amplitude into an electric signal, which is then converted back into a data stream and transmitted to a computer or a mobile device.
    • Moreover, as the LED bulbs that are used are a semiconductor, the current and optical output can be modulated at extremely high speeds making it too quick to be perceived with the human eye and hence the communication seems to be seamless just like radio frequency (RF) communication.

    Li-Fi vs Wi-Fi

     

     

    Potential Applications

    Hospital: Li-Fi can be used in the places where it is difficult to install the optical fibers like hospitals. Besides providing a higher speed, light waves also have little effect on medical instruments and human bodies.

    • Security : In contrast to radio frequency waves used by Wi-Fi, lights cannot penetrate through walls and doors. This makes it more secure and makes it easier to control access to a network.
    • Traffic Management : Vehicles could communicate with one another via front and back lights to increase road safety. Also, street lights and traffic signals could also provide information about current road situations.
    • Underwater application : Most remotely operated underwater vehicles (ROVs) are controlled by wired connections. The length of their cabling places a hard limit on their operational range, and other potential factors such as the cable’s weight and fragility may be restrictive. Since light travels through water, Li-Fi based communications could offer much greater mobility.
    • Industrial automation : Anywhere in industrial areas data has to be transmitted, Li-Fi is capable to replace slip rings, sliding contacts and short cables, such as Industrial Ethernet. Due to the real time capability of Li-Fi (which is often required for automation processes) it is also an alternative to common industrial Wireless LAN standards.

    Conclusion

    Li-Fi can act as one of the important role under wireless communication system technologies and can help in overcoming some of the constraint in existing technologies

  • [Burning Issue] Sexual Harassment at Workplace

    Sexual Harassment at Workplace – #MeToo movement

    Context

    • Accusations of sexual assault have spread across India’s social media as the #MeToo movement took aim at prominent journalists, writers, editors and a comedian.
    • Scores of women, many journalists, came out this week with accounts of sexual harassment from colleagues and editors, accusing them of indecent remarks, unwanted touches, demands for sex, and the dissemination of pornography.
    • The last couple of years have seen a tidal wave of sexual allegations and accusations against men in professionally powerful positions across the globe, and it seems that finally, this wave has now reached Indian shores.

    INTRODUCTION

    Sexual harassment constitutes a gross violation of women’s right to equality and dignity. It has its roots in patriarchy and its attendant perception that men are superior to women and that some forms of violence against women are acceptable. Half of the total number of crimes against women is related to the molestation and harassment at the workplace.

    The increasing work participation rate of women made it imperative for enacting a comprehensive legislation focusing on prevention of sexual harassment as well as providing a redressal mechanism, starting with Vishakha Guidelines to Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act.

    Vishakha Judgement

    • The Supreme Court in 1997 in the case of Vishakha vs. state of Rajasthan provided the first authoritative decision of ‘sexual harassment’ in India; and confronted with a statutory vacuum, it went creative and proposed the route of ‘judicial legislation’.
    • It laid down the requirements for employers dealing with complaints of sexual assault and stipulated the formation of committees to dispose of complaints from victims of harassment. These guidelines came to be known as Vishakha Guidelines.
    • This is part of what the Supreme Court had stated in 1997 that gender equality under Article 14, 19 and Right to Life under Article 21, the dignity of women has to be maintained.

    Definition of Sexual Harassment as defined by the Supreme court

    • Anything at work that can place the working woman at disadvantage compared to other male employees in her official career just because she is a woman – can be termed as sexual harassment.
    • Unwelcome sexually determined behaviour & demands from males employees at the workplace, such as:
      • any physical contacts and advances,
      • sexually coloured remarks,
      • showing pornography,
      • passing lewd comments or gestures,
      • sexual demands by any means,
      • any rumours/talk at the workplace with sexually coloured remarks about a working woman, or
      • Spreading rumours about a woman’s sexual relationship with anybody.

    The Vishaka Guidelines

    1. All employers whether in the public or the private sector should take appropriate steps to prevent sexual harassment.
    2. Appropriate work conditions should be provided in respect of work, leisure, health and hygiene to further ensure that there is no hostile environment towards women and no woman should have reasonable grounds to believe that she is disadvantaged in connection with her employment.
    3. Where such conduct amounts to specific offences under the Indian Penal Code or any other law, the employer shall initiate appropriate action in accordance with the law, by making a complaint with the appropriate authority.
    4. Victims of sexual harassment should have the option to seek transfer of the perpetrator or their own transfer.

    The Preventive Steps as suggested by SC in Vishaka Case

    1. Guidelines should be prominently notified to create awareness about the rights of women employees.
    2. Sexual harassment should be discussed at workers’ meetings, employer-employee meetings and at other appropriate forums.
    3. Employers should assist the persons affected in cases of sexual harassment by outsiders or third parties.
    4. Both Central and State governments are required to adopt measures including legislation to ensure that private employers also observe these guidelines.
    5. Employers must form a Complaints Committee which is to be headed by a woman. Half the members of the committee should be women.

    Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act

    Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act was passed in 2013. It broadens the Vishaka guidelines, which were already in place.

    Definition -An aggrieved victim is a woman “of any age whether employed or not”, who “alleges to have been subjected to any act of sexual harassment”.

    • The Act thus covers the rights of all women working or visiting any workplace, in any capacity.
    • Sexual harassment is any one or more of “unwelcome acts or behaviour”, committed directly or by implication.
    • They include:
    1. Physical contact & advances
    2. A demand or request for sexual favours
    3. Sexually coloured remarks
    4. Showing pornography
    5. Any other unwelcome physical, verbal or non-verbal conduct of sexual nature

    Additionally, the Act mentions five circumstances that amount to sexual harassment:

    1. implied or explicit promise of preferential treatment in her employment
    2. implied or explicit threat of detrimental treatment
    3. implied or explicit threat about her present or future employment status
    4. interference with her work or creating an offensive or hostile work environment
    5. humiliating treatment likely to affect her health or safety
    • ICC – Every employer must constitute an Internal Complaints Committee (ICC) at each office or branch with 10 or more employees.
    • For the ICC to act, it is not compulsory that the victim must write a complaint.
    • If the woman is unable to make a complaint on account of her “physical or mental incapacity or death or otherwise”, her legal heir may do so.
    • The identity of the woman, respondent, witness, any information on the inquiry, recommendation and action taken should not be made public.
    • Time-frame – The complaint has to be made “within 3 months from the date of the incident”.
    • For a series of incidents, it has to be made within three months from the date of the last incident.
    • However, this time-frame is not rigid as the ICC can “extend the time limit”, if it is satisfied that the circumstances were such which prevented the woman from filing a complaint in that period.
    • IPC – The ICC may forward the complaint to the police under Indian Penal Code Section 509.
    • The Section relates to word, gesture or act intended to insult the modesty of a woman, which would lead to the maximum punishment of 1 year in jail with fine.
    • ICC Inquiry – Otherwise, the ICC can start an inquiry that has to be completed within 90 days.
    • The ICC has similar powers to those of a civil court in respect of the following matters:
    1. summoning and examining any person on oath
    2. requiring the discovery and production of documents
    • When the inquiry is completed, the ICC is to provide a report of its findings to the employer within 10 days.
    • While the inquiry is on, the woman can make a written request to the ICC regarding work.
    • The ICC, “may”, then recommend her transfer, leave for 3 months, or any other relief as may be prescribed.
    • Actions – If the allegations are proved, the ICC recommends that the employer take action for sexual harassment.
    • This would be in accordance with the provisions of the service rules, which vary from company to company.
    • It also recommends that the company deduct from the salary of the person found guilty, “as it may consider appropriate”.
    • Compensation is determined based on five aspects:
    1. suffering and emotional distress caused to the woman
    2. loss in career opportunity
    3. her medical expenses
    4. income and financial status of the respondent
    5. the feasibility of such payment
    • Appeal – After the recommendations, the aggrieved woman or the respondent can appeal in court within 90 days.
    • False complaint – In a case of false/malicious complaint and false evidence, ICC “may recommend” the employer to take action against the woman who has made the complaint.
    • However, it cannot be taken for “mere inability” to “substantiate the complaint or provide adequate proof”.
    • Conciliation – The ICC “may”, before the inquiry, take steps to settle the matter between the victim and respondent through conciliation.
    • This is only “at the request of the aggrieved woman,” and provided that no monetary settlement is made as a basis of conciliation.

    Criticism of the Act

    Firstly, it fails to cover those women working in the agricultural workers and armed forces, which are largely men – dominated sectors.

    Secondly, the act appears to be gender biased since it only protects women.

    Thirdly, the act has a wide scope for false allegations. There are high chances of these laws getting misused at the hands of women for their personal benefits.

    Fourthly, the provision regarding the fixing of the monetary compensation according to the economic potential of the person makes it discriminatory since the person with high rank and status will be made to pay more than the person with low status, which from nowhere seems to serve any purpose other than being discriminatory in nature.

    The Effects of Sexual Harassment in the Workplace

    The impact of sexual harassment at the workplace is far-reaching and is an injury to the equal right of women. Not only does it impact her, but it also has a direct bearing on workplace productivity as well as the development of society.

    1. Emotional Well-Being 
    Sexual harassment can jeopardize the victim’s emotional and mental health. It can lead to the loss of self-esteem and it may even compromise personal relationships. Sexual harassment in the workplace can cause significant stress and anxiety.

    2. Physical Health 
    Physical health and emotional health are closely linked. It often leads to physical health issues, such as loss of appetite, headaches, weight fluctuations, and sleep disturbances. Sleep disturbances can, in turn, lead to other serious health problems, such as hormonal imbalance, an increased risk of high blood pressure, and a weakened immune system.

    3. Financial Challenges 
    In addition to causing health problems, sexual harassment frequently leads to financial challenges. Some victims of sexual harassment may even face broader career repercussions, such as the loss of job references. They may decide to leave their current position or employer to avoid a hostile work environment.

    4. Global Consequences

    • Sexual harassment has a direct effect on employers and the global economy. Each year, millions are lost due to absenteeism , low productivity, employee turnover, low morale, and legal costs stemming from sexual harassment. The economy also suffers due to premature retirement and higher insurance costs.
    • National Sample Survey (NSS) data for India show that labour force participation rates of women aged 25-54 (including primary and subsidiary status) have stagnated at about 26-28% in urban areas, and fallen substantially from 57% to 44% in rural areas, between 1987 and 2011.

    Concerns / Challenges

    • Despite these advances, a 2015 study by the Federation of Indian Chambers of Commerce and Industry and EY suggested that 36% of Indian companies and 25% of multinational corporations in India were not compliant with this Act.
    • The problem is of mindset particularly those educated and well trained.
    • Much of it depends on the implementation which is worrisome. Some people who are in very influential position are accused and they have got away with it. In India wherever the accused has been influential they have got a free hand. It creates a sense of alienation, disbelief about the law.
    • Women are exploited by the superior in the matter of promotion, emoluments and better prospects in job etc.

    The need of the Hour

    • There has to be a sense of fear in the mind of the offenders which has to be ensured.
    • Elaborate suggestion, punishment and disciplinary action have to be taken. The Department of Personnel and Training,  Ministry of Women and Child Development should see to it that no matter who is accused should be severely dealt with which would instil a gender sensitive society.
    • More than this is the attitudinal change, how we raise the sons in the families, how we make men respect women within the family and within the private spaces will matter. The socialisation process and education all go towards making the man much more sensitive while dealing with women.
    • There must also be equal punishment to women who make false charges.
    • The law makers must think it over that any complaint of rape should have a time bar and complaints cannot be entertained beyond certain time limit. There are instances where the women approach the police or court with the charges of rape happened three years ago and there can be some motive behind the complaint. So there has to be a time bar within which the compliant should be registered say within 6 months or 1 year.
    • There are 100s of private companies where they don’t have any committee to look into the complaints of sexual harassment of women. The government have to look upon these companies and have proper investigation.

    What does the MWCD Handbook specify?

    • The Ministry of Women & Child Development (MWCD) has published a Handbook in this regard.
    • It gives more detailed instances of behaviour that constitutes sexual harassment at the workplace:
    1. Sexually suggestive remarks, offensive remarks, inappropriate questions or remarks about a person’s sex life
    2. Display of sexist/offensive pictures, posters, MMS, SMS etc
    3. Intimidation, threats, blackmail around sexual favours; also, any kind of threats against an employee who speaks up
    4. Unwelcome social invitations with sexual overtones, commonly seen as flirting/Unwelcome sexual advances
    • It says “unwelcome behaviour” is experienced when the victim feels bad or powerless, causing anger/sadness or negative self-esteem.
    • It adds that unwelcome behaviour is one which is “illegal, demeaning, invading, one-sided and power based”.

    Conclusion

    Not just a healthy balance sheet but a healthy and free work environment is most is the hallmark of a successful work culture, but also India’s GDP. The economic impact of achieving gender equality in India is estimated to be US$700 billion of added GDP by 2025. The IMF estimates that equal participation of women in the workforce will increase India’s GDP by 27 percent. Sexual harassment in the workplace cannot be tackled by legislation alone. It needs cultural change.

  • [Burning Issue] Fourth Industrial Revolution

    Fourth Industrial Revolution: What it Means, Why it’s being Discussed 

    CONTEXT

    • CEOs, political leaders, social entrepreneurs, technologists and other global leaders are all at Davos to further the World Economic Forum’s mission of improving the state of the world.
    • But, the big buzz at the World Economic Forum (WEF) in Davos this year is about the ‘Fourth Industrial Revolution’.

    What is the Fourth Industrial Revolution?

    • As described by the founder and executive chairman of WEF, Klaus Schwab, “the fourth industrial revolution is a technological revolution that will fundamentally alter the way we live, work and relate to one another”.
    • The fourth industrial revolution is the current and developing environment in which disruptive technologies and trends such as the Internet of Things (IoT), robotics, virtual reality (VR) and artificial intelligence (AI) are changing the way we live and work.

    Background:

    1st industrial revolution: The first Industrial Revolution began in Britain in the last quarter of the 18th century with the mechanisation of the textile industry, harnessing of steam power, and birth of the modern factory.

    2nd industrial revolution: The Second Industrial Revolution, from the last third of the nineteenth century to the outbreak of World War I, was powered by developments in electricity, transportation, chemicals, steel, and mass production and consumption. Industrialization spread even further – to Japan after the Meiji Restoration and deep into Russia, which was booming at the outset of World War I. During this era, factories could produce countless numbers of identical products quickly and cheaply.

    3rd industrial revolution: The third industrial revolution, beginning c. 1970, was digital — and applied electronics and information technology to processes of production. Mass customisation and additive manufacturing — the so-called ‘3D printing’ — are its key concepts, and its applications, yet to be imagined fully, are quite mind-boggling.

    How different will be the 4th industrial revolution?

    There are three reasons why today’s transformations represent not merely a prolongation of the Third Industrial Revolution but rather the arrival of a Fourth and distinct one: velocity, scope, and systems impact.

    • The speed of current breakthroughs has no historical precedent. When compared with previous industrial revolutions, the Fourth is evolving at an exponential rather than a linear pace.
    • Moreover, it is disrupting almost every industry in every country. And the breadth and depth of these changes herald the transformation of entire systems of production, management, and governance.
    • The 4th revolution will be characterized by the advent of cyber-physical systems which, while being reliant on the technologies and infrastructure of the third industrial revolution, represent entirely new ways in which technology becomes embedded within societies and even our human bodies. Examples include genome editing, new forms of machine intelligence, and breakthrough approaches to governance that rely on cryptographic methods such as blockchain.
    • Hence, it can be said that the 4th industrial revolution is conceptualised as an upgrade on the third revolution and is marked by a fusion of technologies straddling the physical, digital and biological worlds.

    How does mankind benefit from this?

    Like the revolutions that preceded it, the Fourth Industrial Revolution has the potential to raise global income levels and improve the quality of life for populations around the world.

    • By gaining access to the digital world, consumers will be benefited in several ways. With the advent of new technology, we get to use more and more efficient products.
    • In the future, technological innovation will also lead to a supply-side miracle, with long-term gains in efficiency and productivity.
    • Transportation and communication costs will drop, logistics and global supply chains will become more effective, and the cost of trade will diminish, all of which will open new markets and drive economic growth.

    Challenges posed by this revolution

    Economists have pointed out that the 4th revolution could yield greater inequality, particularly in its potential to disrupt labour markets.

    • As automation substitutes for labour across the entire economy, the net displacement of workers by machines might exacerbate the gap between returns to capital and returns to labour.
    • With this revolution, it is also possible that in the future, talent, more than capital, will represent the critical factor of production. This will give rise to a job market increasingly segregated into “low-skill/low-pay” and “high-skill/high-pay” segments, which in turn will lead to an increase in social tensions.
    • In addition to being a key economic concern, inequality represents the greatest societal concern associated with the Fourth Industrial Revolution.
    • The largest beneficiaries of innovation tend to be the providers of intellectual and physical capital—the innovators, shareholders, and investors—which explains the rising gap in wealth between those dependent on capital versus labour.

    What will be the impact on the government?

    As the physical, digital, and biological worlds continue to converge, new technologies and platforms will increasingly enable citizens to engage with governments, voice their opinions, coordinate their efforts, and even circumvent the supervision of public authorities.

    • Simultaneously, governments will gain new technological powers to increase their control over populations, based on pervasive surveillance systems and the ability to control digital infrastructure.
    • On the whole, however, governments will increasingly face pressure to change their current approach to public engagement and policymaking, as their central role of conducting policy diminishes owing to new sources of competition and the redistribution and decentralization of power that new technologies make possible.
    • Ultimately, the ability of government systems and public authorities to adapt will determine their survival. If they prove capable of embracing a world of disruptive change, subjecting their structures to the levels of transparency and efficiency that will enable them to maintain their competitive edge, they will endure. If they cannot evolve, they will face increasing trouble.

    Impacts on national and international security

    The Fourth Industrial Revolution will also profoundly impact the nature of national and international security, affecting both the probability and the nature of the conflict.

    • The history of warfare and international security is the history of technological innovation, and today is no exception.
    • Modern conflicts involving states are increasingly hybrid in nature, combining traditional battlefield techniques with elements previously associated with nonstate actors.
    • As new technologies such as autonomous or biological weapons become easier to use, individuals and small groups will increasingly join states in being capable of causing mass harm.
    • This new vulnerability will lead to new fears. But at the same time, advances in technology will create the potential to reduce the scale or impact of violence, through the development of new modes of protection or greater precision in targeting.

    The impact on people

    The Fourth Industrial Revolution will change not only what we do but also who we are. It will affect our identity and all the issues associated with it: our sense of privacy, our notions of ownership, our consumption patterns, the time we devote to work and leisure, and how we develop our careers, cultivate our skills, meet people, and nurture relationships.

    • Also, the revolutions occurring in biotechnology, which are redefining what it means to be human by pushing back the current thresholds of lifespan, health, cognition, and capabilities, will compel us to redefine our moral and ethical boundaries too.

    How can we be prepared for the Fourth Industrial Revolution?

    • By providing universal access to affordable education and job training.
    • By continuing to ensure basic protection for workers as the changes take place. Governments have, along with the private sector, an obligation to strengthen these core protections.
    • By modernizing infrastructure. Governments have fundamental responsibilities to build roads, bridges, railways, ports, broadband. And all of this can have a profound impact on economic growth, generating well-paying jobs and bringing opportunity to areas where it does not exist.
    • By having a more progressive tax code.
    • By expanding access to capital. Existing capital and the tools that support entrepreneurship should be made widely available to people who haven’t had access to it before.

    What the Fourth Industrial Revolution means for India

    • For India, the Fourth Industrial Revolution brings tremendous opportunities to leapfrog many stages of development, hastening its journey towards becoming a developed economy. In many ways, the Fourth Industrial Revolution is a leveller.
    • The technologies being used in India will be the same as those in use in the developed world. Robots, AI, IoT are all technologies transforming the industry in the West and are ready to do the same in India.
    • Companies are adopting different elements of the revolution in diverse ways, some gingerly, some in a sure-footed manner. Many have launched pilot projects, while many others have totally migrated some of their business functions to AI-led processes.
    • There is much that India has to be worried about too. An overreliance on automation will shrink job creation. Automation and robotics in industrial manufacturing suits countries with low productive populations. But it does not suit countries like India, where 12–13 million people enter the job market every year.
    • There is a natural fear of job loss resulting from automation and robotics in India. Repetitive processes are being increasingly automated. Banks in India are already using chatbots and even humanoid robots. HDFC Bank has the Ira robot, which helps customers choose the right service and financial products.
    • There are several projections for job losses owing to factors such as automation and consolidation in the market. A report by PeopleStrong says, one in four job losses in India will happen on account of automation.
    • The use of data analytics is opening up efficiencies in sectors like agriculture that did not exist earlier. Cargill India, for instance, is allowing thousands of traders to be part of the system by using mobile-based pricing data.
    • A report by mobile analytics firm App Annie says India is already the fourth largest app economy. Tim Cook, the CEO of Apple, said more than 750,000 jobs here can be attributed to apps on the Apple IoS platform. Indian developers have created 100,000 apps; registering a growth of 57% over 2016.
    • New industry sectors are being created. These have the potential to create work for millions. There is already an industry association for producing and promoting the use of drones in India.

    The Way Ahead for India:

    • India needs a collaborative effort. It will have to create a long-term ecosystem that trains and educates professionals. India could collaborate with the US, Germany, and the EU. The central government can consider a joint platform between ministries, state governments and industry bodies to create a mission for making the most of the Fourth Industrial Revolution technologies.

    Suggestions by Niti Aayog CEO Amitabh Kant

    1. There is an urgent need for more industry-academia collaboration and to develop requisite skills in technology.
    2.  Introduction of a compulsory apprenticeship programme to encourage hands-on experience on technology as early as higher secondary level.
    3. He also suggested fortifying quality, prioritizing investments in innovation and R&D and invest in life-long learning for employees. He urged industry to think big and think global.
    4. To effectively embrace digitalisation, the industry has to foster competitive advantage across their value chains, focus on productivity and fill productivity gaps to compete globally.

    Conclusion

    • In its most pessimistic, dehumanized form, the Fourth Industrial Revolution may indeed have the potential to “robotize” humanity and thus to deprive us of our heart and soul.
    • But as a complement to the best parts of human nature—creativity, empathy, stewardship—it can also lift humanity into a new collective and moral consciousness based on a shared sense of destiny.
    • It is incumbent on us all to make sure the latter prevails. We should thus grasp the opportunity and power we have to shape the Fourth Industrial Revolution and direct it toward a future that reflects our common objectives and values.
  • [Burning Issue] Jobless growth in India

    Why in news?

    • CMIE and labour Bureau data indicates that India continues to face the jobless growth problem

    Jobs scenario in India

    • Multiple data sources clearly show that job opportunities in India are, at present, limited, with the average annual addition to regular jobs during 2012-16 falling to 1.5 million from 2.5 million in 2004-12.
    • Besides, job creation in India’s organized manufacturing sector experienced a sharp fall in 2012, later recovering only to a level considerably below any prior year during 2006-12.
    • Furthermore, the share of regular workers with any form of social security has declined from 45% in 2011-12 to 38% in 2016.

    Reasons for Jobless Growth in India

    1. India’s focus on higher education:

    • Indian Government since the second five-year plan focussed more on higher education rather than basic education (Unlike Southeast Asia). In order to create mass scale manufacturing jobs, the workforce should have some basic skills however in India because the focus was on higher education, we failed to create enough basic skilled workforce required for labour-intensive manufacturing.
    • When India adopted economic reforms in 1991, We had a pool of highly educated workforce but we had a shortage of labour force with basic skills,
    • This meant that India’s growth story of the last 2 decades was led by Few sectors in Service sector like IT, Banking, telecommunication etc because these sectors required highly educated workers which we had plenty.
    • However, these sectors are not labour intensive.  While the share of Service sector increased significantly in India’s GDP, however the share of services in the employment structure remained more or less stagnant.

    2. Import-oriented economy

    • India did not move from the import-substituting phases of its economic development to an export-oriented development strategy and hence failed to witness a strong growth in the labour-intensive segment of the manufacturing sector.
    • If India would have followed Labour intensive goods export-led model like Southeast Asian countries, it would have created many jobs in the MSME sector. Opening up of the economy lead to the availability of cheap capital goods from abroad.

    3.Stagnation in manufacturing output and employment and contraction of the labour-intensive segment of the formal manufacturing sector: (Due to)

    • Excess rigidity in the formal manufacturing labour market and rigid labour regulations has created disincentives for employers to create jobs
    • Industrial Disputes Act has lowered employment in organized manufacturing by about 25% (World Bank Study)
    • Stringent employment protection legislation has pushed employers towards more capital-intensive modes of production than warranted by existing costs of labour relative to capital
    • Therefore, the nature of the trade regime in India is still biased towards capital-intensive manufacturing.

    4. Slow Infrastructure Development

    • Infrastructural bottlenecks (especially in access to electricity)
    • Lack of backward and forward linkages between agriculture, industry and service sector has failed to create jobs.

    5. Other impediments

    • Impediments to entrepreneurial growth in small firms (such as high costs of formalisation) along with a long history of small-scale reservation policy which has prohibited the entry of large-scale units in labour-intensive industries.
    • The tax incentives, subsidies, depreciation allowance all are solely linked to the amount invested and not to the number of jobs created.
    • Sluggish process in education and skill levels of workers.
    • Governance failure – no targeted interventions designed specifically for specific sectors and less focus on MSME.

    How can we reverse the Jobless growth Phenomenon in India

    1. Implement Niti Ayog action agenda

    • The Action Agenda has provided several good ideas for job creation, including labour law reforms at the state level, recognizing the difficult national political landscape as well as the wide cross-state variation in the nature of political constraints.
    • The AA has also identified labour-intensive sectors, such as apparel, electronics, food processing, gems and jewellery, financial services, and tourism, where employment needs to be encouraged.
    • Furthermore, the report emphasizes the role of exports in job creation and recommends establishing coastal employment zones (CEZs), similar to China’s special economic zones (SEZs)

    2. An industrial and trade policy is needed.

    • The Department of Industrial Policy and Promotion (DIPP) is preparing an industrial policy. National Manufacturing Policy came in 2011, was not implemented fully.
    • While the DIPP is preparing the industrial policy document, it is essential that trade policy is consistent with such an industrial policy. Otherwise, the two may work at cross purposes and undermine each other’s objectives.
    • Excessive imports have been decimating Indian manufacturing.
    • An inverted duty structure has the following features: higher duty on intermediate goods compared to final finished goods, with the latter often enjoying concessional customs duty.
    • As a result, domestic manufacturers face high tariffs leading to higher raw material cost at home, emanating from the unfavourable inverted duty structure.
    • This has prevented many manufacturing sectors from growing since economic reforms began. This must be corrected.
    • The automobiles sector in India faced no inverted duty structure, and has thrived. India has become in the last decade one of the largest producers of vehicles of several kinds in the world now. Electronics faced an inverted duty structure, but due to changes made, electronics manufacturing has shown slow growth.

    3. Special packages are needed for labour-intensive industries to create jobs

    • There are a number of labour-intensive manufacturing sectors in India such as food processing, leather and footwear, wood manufacturers and furniture, textiles and apparel and garments.
    • The apparel and garments sector received a package from the Government of India roughly a year back. The other labour intensive sectors have been ignored.
    • The nature of the package will need to be individually designed for each sector defined as quickly as possible.

    4. Cluster development

    • There should be cluster development to support job creation in micro, small and medium enterprises (MSMEs).
    • Most of the unorganised sector employment is in MSMEs, which tend to be concentrated in specific geographic locations.
    • There are 1,350 modern industry clusters in India and an additional 4,000 traditional product manufacturing clusters, like handloom, handicraft and other traditional single product group clusters.
    • There is a cluster development programme of the Ministry of MSMEs, which need to be funded adequately and better designed to create more opportunities.

    5. Align urban development with manufacturing clusters to create jobs.

    • The Ministry of Urban Development has a programme called AMRUT (Atal Mission for Rejuvenation and Urban Transformation) aimed at improving infrastructure for small towns. Infrastructure investment by the government creates many jobs.
    • The same intervention should be made in towns which have clusters of unorganised sector economic activities.
    • Hence an engagement between the Urban Development and MSME Ministries is necessary to attract more investment to industrial clusters and increase non-agricultural jobs.

    6. More focus on women participation

    • Girls are losing out in jobs, or those with increasing education can’t find them, despite having gotten higher levels of education.
    • Secondary enrolment in the country rose from 58% to 85% in a matter of five years (2010-2015), with gender parity.
    • Skilling close to clusters is likely to create more number of jobs.
    • The problem with skilling programmes has been low placement after skilling is complete.
    • The availability of jobs close to where the skilling is conducted will also enhance the demand for skilling.

    7. Public investments in health, education, police and judiciary

    • This can create many government jobs.
    • Public investment in the health sector has remained even in the last three years at 1.15% of GDP, despite the creation of the national health policy at the beginning of 2017.
    • The policy indicates that expenditure on health will rise to 2.5% of GDP by 2025.
    • Given the state of health and nutrition of the population, it is critical that public expenditure on health is increased immediately.
    • In the absence of greater public expenditure, the private sector in health keeps expanding, which raises the household costs on health without necessarily improving health outcomes, because the private sector does not spend on preventive and public health measures.
    • Preventive and public health have been in all countries the responsibility of government. More government expenditure in health means more jobs in government hospitals and better health outcomes.
    • Next important area should be Revitalising schools. Government schools should maintain education quality on par with private schools. Many new government jobs can be provided if more young people could be trained specially to become teachers for science and mathematics at the secondary and higher secondary levels in government schools.
    • The same applies to the police and the judiciary. All the vacancies in Police and judiciary should be filled immediately. More police and a larger judiciary can both reduce crime as well as speed up the process of justice for the ordinary citizen

    Conclusion

    India needs a new strategy to counter the phenomena of jobless growth. This requires manufacturing sector to play a dominant role. “MAKE IN INDIA” initiative a great step forward which will boost the manufacturing. Complementary schemes like Skill India, Startup India etc can enhance the skillsets and employment generation

    The focus of economic policy must be the creation of jobs and creating an enabling policy for youth to take up entrepreneurship and create more jobs in the market. India does not need five companies worth 5000 crores turnover but needs 5000 companies of 5 crore turnover.

  • [Burning Issue] Island Development Agency

    What is Island Development Agency (IDA)?

    1. The 1382 offshore-identified islands of India hold immense unexploited potential for fostering growth and achieving cohesive socio-economic development of the region in particular and also, the nation as a whole.
    2. They can significantly contribute to the GDP by leveraging the gains from promoting infrastructure and tourism on a large scale.
    3. Considering this IDA was set up in June 2017 following Prime Minister’s review meeting for the holistic development of islands.
    4. The meetings of the agency are chaired by the Union Home Minister. Members of IDA include cabinet secretary, the home secretary, secretary (environment, forests and climate change), secretary (tourism) and secretary (tribal welfare).
    5. NITI Aayog has highlighted the elements of holistic development, including key infrastructure projects, digital connectivity, green energy, desalination plants, waste management, promotion of fisheries, and tourism-based projects.
    6. With better communication services, Information Technology based and other Micro, Small and Medium Enterprises (MSME) would be promoted in the Islands.

    What does it include?

    Key Infrastructure projects such as:

    • creation of jetties/berthing facilities,
    • Roll-on/Roll-off ships;
    • Bridges on Andaman Trunk Road;
    • Upgradation of Diglipur Airport;
    • Construction of Minicoy Airport;
    • Modernization of existing Jetty at Kavaratti;
    • Augmentation of Satellite Bandwidth from 1.118 Gbps to 2.118 Gbps in Andaman & Nicobar;
    • augmentation of helicopter services for Islanders and tourists etc.

    Development of IDA

    First Meeting

    • In the first meeting, directions were given to identify and execute infrastructure and connectivity projects together with provisioning of water and electricity.
    • 10 islands namely Smith, Ross, Aves, Long and Little Andaman in Andaman & Nicobar and Minicoy, Bangaram, Suheli, Cherium and Tinnakara in Lakshadweep have been identified for holistic development in the first phase.

    Second Meeting

    • It reviewed concept development plans and detailed master plans for holistic development of 9 islands.
    • These 9 islands include four in Andaman & Nicobar Islands (Smith, Ross, Long, Avis) and five in Lakshadweep (Minicoy, Bangaram, Thinnakara, Cheriyam, Suheli).

    Third Meeting

    • It reviewed the progress made towards the preparation of Development Plans for identified Islands (four in A&N Islands i.e. Smith, Ross, Long, Avis and five in Lakshadweep i.e. Minicoy, Bangaram, Thinnakara, Cheriyam, Suheli).
    • For these Islands, Final Site Suitability Reports have been prepared, Carrying Capacity determined and Environmental zoning carried out to ensure sustainable development.

    What makes IDA important?

    Maritime Strategic Importance

    1. Given the strategic location of Andaman & Nicobar (A&N Islands) and the Lakshadweep Islands and China’s assertive expansionist policy in the Indian Ocean Region (IOR) there is a need to develop critical infrastructure and upgrade the military base in these regions.
    2. India’s only tri-service command is established at the A&N Islands at the entrance of the Malacca Strait, the 2.8 km long -world’s most congested choke point, and the primary route for Chinese oil supply.
    3. Illicit activities such as Pirates and territorial violations can be curbed if the Islands such as Lakshadweep are strategically developed.
    4. Andaman & Nicobar Islands is centre-point for the development of Quad Group’s maritime agenda in the Indo-Pacific Region.

    Energy Potential

    1. The Islands host an unexplored Exclusive Economic Zone (EEZ) with clearly demarcated boundaries that can be capitalized on in numerous ways.
    2. The varied ecosystem can be exploited for its medicinal plants and exotic plant species, sustainable agriculture and horticulture practices conducive to the agro-climatic conditions of the regions can be propagated.
    3. The IOR is home to large-scale hydrocarbon which can be explored. Recently India’s exclusive rights to explore polymetallic nodules from seabed in Central Indian Ocean Basin (CIOB) have been extended by five years.
    4. This can boost India’s hunt for alternate renewable energy resources so as to meet the energy needs of the nation.

    Economic Importance

    1. Fisheries, the main occupation of the larger population of these regions, can be given a thrust so as to develop modernized and sustainable inland fisheries and aquaculture ecosystem integrated with the ‘Blue Economy’ vision. Ex. Fishing of Lakshadweep Tuna.
    2. Most importantly, the Islands can be developed as prime Tourist Hotspots for not just the country, but also internationally.
    3. The pristine beaches, coupled with rich tropical vegetation, can be turned into a more economical and attractive alternative to conventional destinations such as Bali and Maldives.
    4. This help in creating many forward and backward linkages and boost the economy of the regions to a large extent.

    Trade and Regional Connectivity

    1. Indian Ocean Region handles most of the sea trade in the world.
    2. The shallow coastline of mainland India has severe impact on trade capacity.
    3. Deep water ports can be developed on these Islands thereby paving way for creation of additional service and refuelling stations.
    4. Greater connectivity of these islands with South East Asia can be harnessed for India’s Act East Policy.

    International Cooperation

    1. The 2016 Indo-Japan Joint Statement on Bilateral Cooperation envisioned to develop “Smart Islands” on the line of the ‘Smart Cities’ project.
    2. Japanese capital and expertise can be both pioneering as well as beneficial to this endeavor.
    3. The development of the Reunion Islands by France can be a guiding example and also opens up the opportunity for prospective collaboration with Paris in implementation of such projects.
    4. The positive response by OECD countries in taking on ‘Smart Cities’ projects further demands similar international cooperation.

    What hinders the development of Island?

    Climate Change

    1. Parali Island of the Lakshadweep got completely submerged due to rising sea levels,
    2. The vulnerabilities of these Island groups to Tsunamis is a grave matter of concern.
    3. Rise in sea temperature and oceanic acidification further intensify coral bleaching.

    Restricted Area Permit

    1. Recently govt has decided stop the requirement of Restricted Area Permit for foreigners visiting the Andaman and Nicobar Islands to boost tourism.
    2. This can pose a threat to the PVTGs such as Jarawas, Ongis and Sentinelese.

    Chinese Assertiveness

    1. China’s bid of encircling India in the Indian ocean region by various initiatives are greatest threat to India.
    2. Chinese development such as Naval base in Djibouti and Hambantota, Sri Lanka pose a greater threat.

    Other issues

    1. These include delay in the project implementation due to lack of funds.
    2. Infrastructural development in on the islands are restricted due to logistical limitations such as lack of developed ports, airports etc. Seamless supply of electricity and potable water is still not achieved in these region.
    3. The remoteness of these hinterland currently fails to attract private players due to such problems.

    Indian initiatives so far

    1. Ship Building and Ship Repairing have been the high priority areas for infrastructure initiatives in the islands.
    2. The government has announced laying of Rs, 1,102 Crore worth of submarine optical fiber cable between Chennai and A&N Islands so as to increase telephone and internet connectivity in the region by December 2018.
    3. Tri-services military command has also been established in the Eastern Naval Commands at A&N islands . This will help curbing piracy, smuggling and terror activity.
    4. Various exercises such as CORPAT, SIMBEX are held to bolster maritime security.

    Way Forward: Private Sector Participation

    1. The road to development sails through the islands.
    2. The high financial costs in such investments create a need for private sector involvement, where their operational and managerial expertise is required to optimally deliver on these projects.
    3. Similarly, International best practices can be modified suitably and replicated so as to maximize returns further.
    4. Although, the need for civil infrastructure development in Island regions is unquestionable, in the wake of existing geo-strategic position, upgradation of defense facilities is equally important.
    5. This will constructively channelize the positive externalities of such assets to enhance the living conditions of entire populace.
    6. Due attention needs to be paid so as to not disturb the ecological balance, disrupt local livelihood-activities, and engage all stakeholders in the decision making process while ensuring that sufficient institutions and mechanisms exist for grievance redressal, compensation and rehabilitation.
  • [Burning Issue] Aadhar Card: SC verdict and surrounding debate

    Context

    The Supreme Court upheld the validity of India’s ambitious biometric identity project, ‘Aadhaar’, saying it benefited the marginalized and poor, but sharply reined in a government push to make it mandatory for various services.

    What is Aadhaar?

    Aadhaar is a 12 digit unique-identity number issued to all Indian residents based on their biometric and demographic data. The data is collected by the Unique Identification Authority of India (UIDAI), a statutory authority established by the Government of India, under the Ministry of Electronics and Information Technology, under the provisions of the Aadhaar (Targeted Delivery of Financial and other Subsidies, benefits and services) Act, 2016.

    What are the benefits of Aadhar?

    1. JAM trinity –  Jan DhanYojana, Aadhaar and Mobile numbers – This will make the government support to poor more targeted and less distortive.
    2. Identification of the beneficiaries of the government’s welfare schemes – Aadhar will help to remove fake and duplicates identities. It can be used to filter the list of beneficiaries and stop the leakage of public money.
    3. To tackle the black money issue – Use of Aadhar in financial transactions can reduce the menace of black money in the country.
    4. In Income tax return  Use of Aadhar in income tax filing will reduce the number of documents needed. It can make the process more efficient and cost-effective way.
    5. In Opening a bank account – There is no need to collect multiple identity proofs or run around for documentation. Your humble Aadhaar Card is ample proof of your identity and address.
    6. In getting subsidies directly to the bank account – By linking Aadhar with bank accounts, subsidies like LPG will get credited to bank account directly.
    7. To get pension money on time  By just registering with the Aadhaar number, pension-related documentation process will be eased and a timely payout of pension money can be ensured.
    8. The issue of digital Life certificate – Aadhar number can be used to get a digital life certificate. It will help pensioners without the hassle of physically going to the bank and submitting the life certificate.
    9. Easy Provident Fund disbursement – The Aadhaar will ensure that the Provident Fund money is not diverted and is disbursed directly to the pensioner’s account.
    10. Accepted as a proof of address by Securities and Exchange Board of India (SEBI) for investing in stock market.
    11. Mapping development parameters – In critical sectors of the country like healthcare and education, Aadhar can be used to map the development process.
    12. It can help to map skilled manpower, based on the vocational training acquired by the individual, to suitable job vacancies/ skill requirements of the State.

    Issues with Aadhar and Aadhar Act

    1. Questionable Legal Backing: The current legal backing of Aadhar is via a money bill. The Aadhaar (Targeted Delivery of Financial and other Subsidies, benefits and services) Act, 2016 came into force in 2016, but this is now challenged in Supreme Court.
    2. Issues with sharing information collected under Aadhaar – The provisions in the Aadhaar (Targeted Delivery of Financial and other Subsidies, benefits and services) Act, 2016 Act with regard to the protection of identity information and authentication records may be affected by recent verdict by Supreme Court that Right to Privacy is a Fundamental Right.
    3. Violation of rights – It was argued that the UIDAI might share the biometric information of people with other government agencies and thus would violate people’s right to privacy.
    4. Has potential to profile individuals – The Act does not specifically prohibit law enforcement and intelligence agencies from using the Aadhaar number as a link (key) across various datasets (such as telephone records, air travel records, etc.) in order to recognise patterns of behaviour. Eg The Facebook–Cambridge Analytica data scandal.
    5. Discretionary powers of UIDAI – The Act empowers the UID authority to specify demographic information that may be collected. The only restriction imposed on the authority is that it shall not record information pertaining to race, religion, caste, language, etc of the individual.
    6. Furthermore, UID has exclusive power to make complaints and the courts cannot take cognizance of any offence punishable under the Aadhaar Act unless a complaint is made by the UID authority.
    7. The time period for maintaining authentication records – The bill does not specify the maximum duration for which authentication records may be stored by the UID authority.
    8. There are high possibilities of data theft, data leak or breach. Eg. Aadhaar numbers and bank details of over 134,000 beneficiaries on Andhra Pradesh Housing Corporation’s website have been leaked.

    What of the Aadhaar Act has the court struck down?

    • Section 33(1) which allows disclosure of information, including identity and authentication records, if ordered by a court not inferior to that of a District Judge. Individuals should be given the opportunity of a hearing.
    • Section 33(2) which allowed identity and authentication data to be disclosed in the interest of national security on direction of an officer not below the rank of Joint Secretary to the Government of India. A Judicial Officer (preferably a sitting High Court Judge) should be associated with it and that the government should bring in legislation to this effect.
    • Section 47 which referred to cognizance of offences. Under this Section, no individual was allowed to file a complaint if he/she felt their data was leaked or misused. The law only allowed the court to take cognizance of a complaint filed by UIDAI or anyone authorised by it. Any individual will now be allowed to file a complaint if he/she feels their data has been compromised.
    • Section 57 refers to the use of Aadhaar data by any “body corporate or person” to establish the identity of an individual. Justice Sikri, in his judgment, found this section to be unconstitutional. It was under this provision that private companies like Paytm and Airtel Payments Bank sought Aadhaar details from customers.

    The implications of the Aadhaar verdict:

    1. Aadhaar is mandatory for filing of income tax returns (ITR) and allotment of Permanent Account Number (PAN).

    2. Most commercial banks, payments bank and e-wallet companies like Paytm, they cannot seek Aadhaar data i.e. Aadhaar authentication for bank accounts is now a thing of the past.

    3. Telecom service provider cannot seek Aadhaar details from you. Justice Chandrachud has favoured deletion of consumers’ Aadhaar data by mobile service providers.

    4. Students of CBSE, NEET, UGC also do not require Aadhaar number to appear in exams. Even schools cannot seek Aadhaar card for admissions.

    5. Aadhaar card is however must for availing facilities of welfare schemes and government subsidies as it empowers the poor and marginalised.

    6. The Supreme Court has made exception for children saying that no child can be denied benefits of any scheme if he or she doesn’t have Aadhaar card.

    7. The apex court has struck down Section 57 of the Aadhaar Act as “unconstitutional”. This means that no company or private entity can seek Aadhaar identification from you.

    8. The constitution bench has also struck down the national security exception under the Aadhaar Act. This will indirectly ensure greater privacy of individual’s Aadhaar data while restricting the government accessibility to it.

    9. The Supreme Court judgement, said it would not lead to a surveillance state because the data was kept in silos. The program’s invasion of privacy was minimal and served a much larger public interest by providing identities to India’s poor and marginalized citizens.

    10. The court said that under present Aadhaar scheme and structure, it is difficult to profile a person on the basis of minimal biometric information collected.

    The dissent in the Court’s verdict

    • In his dissent, Justice Chandrachud argued that the passage of the Aadhaar Act as a ‘money bill’, has superseded the Rajya Sabha’s authority and this “constitutes a fraud on the Constitution”. As a result of this “debasement of a democratic institution”, he held the Aadhaar Act unconstitutional.
    • He also expressed his displeasure at the government passing a series of orders making Aadhaar compulsory for various reasons, in defiance of interim orders from the Supreme Court.
    • He highlighted the biometric authentication failures that have led to denial of rights and legal entitlements. Further he ruled that denial of benefits arising out of any social security rights is “violative of human dignity and impermissible under our constitutional scheme”.

    Aadhar Card and Right To Privacy – Can They Co-Exist?

    Previous Supreme Court Rulings:

    1. In Kharak Singh case (1962), a six-judge judgment — held that the Right to Privacy was not a fundamental right.
    2. In Govind vs. State of Madhya Pradesh (1975), the Supreme Court held that “many of the fundamental rights of citizens can be described as contributing to the Right to Privacy”. After this, the approach to interpretation of fundamental rights had undergone a fundamental change. The scope of article 21 of Constitution was broadened through subsequent judgments.
    3. In Maneka Gandhi (1978), the SC held that any law and procedure authorizing interference with personal liberty and Right of Privacy must also be right, just, and fair, and not arbitrary, fanciful, or oppressive.”
    4. In R Rajagopal vs State of Tamil Nadu (1994), Supreme Court held that the Right to Privacy is implicit in the right to life and liberty guarantee by Article 21. A citizen has a right to safeguard the privacy of his own, his family, marriage, procreation, motherhood, child-bearing and education among other matters.

    From these rulings, it can be inferred that though the Constitution does not specify ‘right to privacy’ as a fundamental right, but the subject has evolved considerably in India, and privacy is now seen as an ingredient of personal liberty.

    The Need of hour to ensure Data Privacy:- Justice AP Shah Committee

    • In its zeal to aggregate data in electronic form and target subsidies better, the government cannot ignore its responsibility to protect citizens from the perils of the cyber era.
    • Legislation- it is imperative that the Union Government enact a privacy legislation that clearly defines the rights of citizens and it should be consistent with the provision of the Constitution.
    • The government should factor in privacy risks and include procedures and systems to protect citizen information in any system of data collection.
    • It should create an institutional mechanism such as the Privacy Commissioner to prevent unauthorised disclosure of or access to such data.
    • Our national cyber cell should be made well capable of dealing with any cyber-attack in the shortest time.
    • We need to educate people on the risks involved and highlight examples of ID thefts and fraud.
    • The government should recognise all dimensions of the right to privacy and address concerns about data safety, protection from unauthorised interception, surveillance, use of personal identifiers and bodily privacy.
    • We need to take a level-headed approach and ensure that ample safeguards are put in place for data protection and privacy.

    The Way Ahead:

    • The court also ruled that the authentication record should not be kept beyond the period of six months and the provision that allowed archive records for five years has been struck down.
    • It has excluded storage of meta-data of transactions by individuals. This banning means UIDAI cannot collect data sets and mine it for more data or analysis. It has also struck down data sharing with corporates.
    • The Supreme Court also called for Parliament to draft and pass a data protection law immediately. “We have also impressed upon the respondents to bring out a robust data protection regime in the form of an enactment on the basis of Justice BN Srikrishna (Retd.) Committee Report with necessary modifications thereto as may be deemed appropriate.”

    Conclusion

    • This judgment should reassure all citizens that Aadhaar has been put into place by this government to ensure that curse of corruption and leakages in use of public money is once in for all removed from our system.
    • The main concerns of rights of citizens and correcting the imbalance in Aadhaar Act vis-a-vis UIDAI has been corrected by Supreme Court and UIDAI will now evolve into a transparent accountable institution.
    • The ban on metadata storage, minimum data and only six months of data storage strengthen the citizens Right to Privacy.
    • Along with Section 66 A, Privacy as Fundamental Right and this verdict on Aadhaar– these three cases mark the basic shaping of the future of a Digital India with solid clear legal rights for Indians.
  • [Burning Issue] IL&FS Crisis

    WHY IN NEWS

    IL&FS Group, a vast conglomerate that funds infrastructure projects across the world’s fastest-growing major economy, sent shock waves through credit markets when it began missing debt repayments. That’s caused concern not just for its myriad investors, including private individuals, who had regarded IL&FS debt as rock-solid.

    KEY TERMS

    1. Commercial paper is an unsecured, short-term loan used by a corporation, typically for financing accounts receivable and inventories. It is usually issued at a discount, reflecting current market interest rates. Maturities on commercial paper are usually no longer than nine months, with maturities of between one and two months being the average.
    2. NBFC: A Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, 1956 engaged in the business of loans and advances, acquisition of shares/stocks/bonds/debentures/securities issued by Government or local authority or other marketable securities of a like nature, leasing, hire-purchase, insurance business, chit business but does not include any institution whose principal business is that of agriculture activity, industrial activity, purchase or sale of any goods (other than securities) or providing any services and sale/purchase/construction of immovable property.
    3. SFIO:-The Serious Fraud Investigation Office (SFIO) is a corporate fraud investigating agency in India. It is under the jurisdiction of the Ministry of Corporate Affairs, Government of India. The SFIO is involved in major fraud probes and is the coordinating agency with the Income Tax Department and the Central Bureau of Investigation.

    What is IL&FS?

    • The IL&FS Ltd is an infrastructure finance company registered with the Reserve Bank of India as a ‘Systemically Important Non-Deposit Accepting Core Investment Company’, with over Rs.1,15,000 crore of assets and Rs. 91,000 crore of debt.
    • The IL&FS was the brainchild of the late M.J. Pherwani and was founded in 1987 with equity from Central Bank of India, Unit Trust of India, and Housing Development Finance Co to fund infrastructure projects at a time when peers IDBI and ICICI were more focused on funding corporate projects.

    What is the crisis?

    • To put it simply, IL&FS defaulted on a few payments and failed to service its commercial papers (CP) on the due date—which means the company has run out of cash or it is facing a liquidity crunch.
    • The company piled up too much debt to be paid back in the short-term while revenues from its assets are skewed towards the longer term.
    • IL&FS first shocked markets when it postponed a $350 million bonds issuance in March due to demand for a higher yield from investors.
    • The recent slowdown in infrastructure projects and disputes over contracts locking about Rs 90 billion of payments due from the government have further worsened the condition.
    • IL&FS Financial Services disclosed on September 6 that the commercial papers (CP), which were due on August 28, could not be paid on due date and were settled in full on August 31.
    • IL&FS Financial Services has about $500 million in repayments which are due in the second half of this financial year while it has only about $27 million available.
    • According to a Reuters report, by the middle of September, IL&FS and IL&FS Financial Services had a combined Rs 270 billion of debt rated as junk by CARE Ratings and a further six group companies had suffered downgrades with a negative outlook on another Rs 120 billion of borrowings.

    What are the effects?

    • The company’s default spells trouble for its investors, which include banks, insurance companies, and mutual funds. Investors and traders have been worried over the cascading effects of IL&FS’s defaults.
    • IL&FS sits atop a web of 169 subsidiaries, associates, and joint-venture companies, which makes the default even more worrisome.
    • IL&FS has revealed a series of delays and defaults on its debt obligations and inter-corporate deposits.
    • IL&FS said it was unable to service its obligation towards a letter of credit to IDBI Bank Ltd.
    • This has raised concerns about the possibility of a contagion or spillover, with further defaults hitting mutual funds with exposure to IL&FS and its group companies.

    Why are individual investors affected?

    • Some of the missed payments, which started in late August, were on commercial paper, or short-term unsecured debt.
    • Money managers have marked down holdings of IL&FS debt and one financial company temporarily halted inflows into some affected funds.
    • Banks, mutual and pension fund managers, insurers and individuals are bracing for further losses.
    • Among the concerns for investors is that IL&FS has made loans to its own units. The company is also in default on short-term borrowings known as inter-corporate deposits.

    LATEST DEVELOPMENT

    • The government announced that Kotak Mahindra Bank’s managing director Uday Kotak will serve as chairman of the new IL&FS board. Additionally, the government nominated technocrats with substantial experience in their fields.
    • The Parliamentary panel on finance decided to investigate the IL&FS matter and its members will meet the new board.
    • Separately, India’s Serious Fraud Investigation Office (SFIO) has launched an inquiry into alleged financial irregularities at IL&FS, questioning its top management and searching its offices.
    • Life Insurance Corporation(LIC) has been slated to bail out Infrastructure Leasing & Financial Services Limited (IL&FS) soon.

    Challenges for the new board under Uday Kotak as chairman

    • Infrastructure Leasing and Financial Services (IL&FS) is a season of corporate misgovernance, scams and lack of any CEO-level and board-level accountability.
    • It is shocking that credit rating agencies such as ICRA and CARE should have given a ‘AAA’ rating to IL&FS when information regarding the IL&FS board’s complete neglect of risk management was in the public domain.
    • It would take time to revive the company and the new board need to ensure a fair value for the assets of IL&FS.
    • The company, with Rs 91,000 crore debt, has defaulted on a series of payments due to asset-liability mismatch and its inability to raise funds from the market.
    • The immediate task for the board would be to come up with a roadmap to arrange for the funds and to also re-examine the IL&FS business model of being both a financier and a developer of infrastructure projects.
    • The new board will have to figure a way to unravel the numerous subsidiaries and associate companies, which have over the years burgeoned under the parent IL&FS’s blessings.

    THE WAY AHEAD

    • There may be a freeze on actions like payout of management salaries and payout of dividends that were declared at IL&FS’s annual general meeting.
    • The new board is reportedly considering monetisation of IL&FS’s assets to pay back investors and lenders. It also plans to sell as much as 24 projects to raise around Rs30,000 crore.
    • Besides raising funds, the board may also have to order an audit to identify what went wrong and take action against those found responsible.

    CONCLUSION

    The IL&FS fallout has already roiled stock markets and the government has scrambled to contain the further damage that could undermine confidence in the financial sector.  The need is to restore investors confidence who are worried about leverage at other shadow banks, prompting a surge in volatility among financial stocks.

  • [Burning Issue] Internet of Things (IoT)

     

    What is the meaning of IoT?

    1. The Internet of Things (IoT) is a system of interrelated computing devices, mechanical and digital machines, objects, animals or people that are provided with unique identifiers and the ability to transfer data over a network without requiring human-to-human or human-to-computer interaction.
    2. A thing, in the Internet of Things, can be a person with a heart monitor implant, a farm animal with a biochip transponder, an automobile that has built-in sensors to alert the driver when tire pressure is low — or any other natural or man-made object that can be assigned an IP address and provided with the ability to transfer data over a network.
    3. IoT has evolved from the convergence of wireless technologies, micro-electromechanical systems (MEMS), microservices and the internet. The convergence has helped tear down the silo walls between operational technologies (OT) and information technology (IT), allowing unstructured machine-generated data to be analyzed for insights that will drive improvements.

    Impact of IoT on the day to day life:

    1. Car-Calendar Connection: Say for example you are on your way to a meeting; your car could have access to your calendar and already know the best route to take. If the traffic is heavy your car might send a text to the other party notifying them that you will be late.
    2. Alarm Clock-Coffee Maker Connection: What if your alarm clock wakes up you at 6 a.m. and then notifies your coffee maker to start brewing coffee for you?
    3. IoT and Google’s Driverless Car: The car has multiple devices which track the movement of objects, captures the images surrounding it and processes the information. It has devices on board that can change the speed and direction of movement depending on the feedback it gets from the external environment. The data is then backed-up on a cloud from which it can receive instructions and behave accordingly, right from throttle accelerator to applying brakes.

    Impact of IoT on Governance:

    1. On a broader scale, the IoT can be applied to things like transportation networks: “smart cities” which can help us reduce waste and improve efficiency for things such as energy use; this helping us understand and improve how we work and live.

    Challenges thrown up by the advent of IoT

    • Data Management

    Connected devices are going to produce massive amount of data. Companies need to figure out a way to store, track, analyze and make sense of the vast amounts of data that will be generated.

    • Privacy & Security

    With billions of devices being connected together, what can people do to make sure that their information stays secure? Will someone be able to hack into your toaster and thereby get access to your entire network? The IoT also opens up companies all over the world to more security threats. Then we have the issue of privacy and data sharing.

    IoT in India

    Government of India’s IoT Announcement, has come out with a draft IOT Policy document which focuses on following objectives:

    1. To create an IoT industry in India of USD 15 billion by 2020. It has been assumed that India would have a share of 5-6% of global IoT industry.
    2. To undertake capacity development (Human & Technology) for IoT specific skill-sets for domestic and international markets.
    3. To undertake Research & development for all the assisting technologies.
    4. To develop IoT products specific to Indian needs in all possible domains.

    Recent Initiatives

    1. Government is coming up with a regulatory framework for Internet-of-Things (IoT) along with policies to promote the sector.
    2. Department of Telecom has come out with a machine-to-machine (M2M) roadmap, with an aim to put regulators, industry agencies that develop standards, users and manufacturers on the same page.
    3. The Department of Electronics & Information Technology (DeitY), in its draft policy, targets to create an IoT industry in India of $15 billion by 2020.
    4. Currently, work is going on in the area of numbering schemes for IoT and KYC norms for SIM-embedded M2M devices.
    5. Telecom Standards Society of India too is working on India-relevant standards with respect to the sector.

    Consumer IoT adoption would be slow in India

    Due to various challenges, consumer IoT adoption would be slow in India. Some of these IoT adoptions challenges (data security, lack of standardization, data ownership issues, ROI, etc.) are really not unique to India. Apart from these challenges, IoT in India, especially in the consumer space, would need to reckon with a few other hurdles. These are:

    • Internet availability / bandwidth / reliability

    Even today Internet connectivity is a major challenge in India. For consumer IoT adoption – this would remain a major challenge.

    • Cost of IoT enabled systems and devices

    Even products such as wearable fitness bands are yet to take off in India, and price is a key reason. Indian consumers are very selective in terms of where they would invest when it comes to technology.

    • Lack of vendor activity

    Global vendors, often mistakenly, assume that Indian consumers are “not ready” for advanced products. This is very much evident in the IoT space, with hardly any kind of vendor activity today. This, in turn, has led to low awareness levels of IoT devices and systems among consumers.

    • Overall infrastructure challenges

    Apart from the internet the supporting infrastructure such as smart grids, traffic systems, etc., are far from being ready for IoT.

    Commercial IoT has much better prospects in India

    The challenges listed for consumer IoT adoption becomes less of an issue when it comes to commercial space. It is not that these challenges (especially internet connectivity and cost of IoT) are not there in the commercial space; they can just be more easily addressable by commercial organizations. Even globally, IoT adoption and usage is much higher in the commercial space.

    Some of the areas where commercial IoT adoption can grow in India are:

    • Logistics, fleet telematics
    1. Logistics as a sector is expected to grow rapidly in the coming years in India. Regulatory changes such as GST implementation would drive consolidation and growth. The booming e-commerce sector is another key driver for the logistics industry.
    2. With growth and consolidation, logistics companies would be looking to better leverage technology to drive efficiency in operations and this where IoT could play a key role.
    3. Tata Motors as begun putting sensors into its trucks, so that fleet owners can get information on how the vehicles are used, and even predict potential breakdowns.
    4. Vendor community also sees to be interested in the IoT opportunities in the logistics space.
    5. Cisco and L&T Technologies announced a tie-up in September 2014, to explore IoT opportunities in transportation and other infrastructure sectors.
    • Smart cities and utility services
    1. With the new government coming out with an IoT policy, and the stated plans of developing smart cities, there is significant scope for growth of IoT in multiple government and utility services.
    2. There are signs of some vendor activity also. Tech Mahindra has announced a tie-up with Bosch Software Innovations, to develop an ecosystem to enable innovative solutions for the connected world and connected enterprises.
    • Industrial automation / supply chain / inventory management
    1. Indian manufacturing sector has seen a significant growth in IT adoption.
    2. IoT applications for the manufacturing sector whether it is automation or supply chain management would be a key growth area in India.
    3. Other areas of possible growth include insurance sector, where some of the insurance companies in India have started experimenting with IoT, primarily in the automobile insurance space; and the healthcare sector which is growing very rapidly and modernizing fast.

    Way forward

    1. IoT will continue to evolve in the coming months and one can expect significant growth in the long run.
    2. However, reliable internet connectivity and overall supporting infrastructure will be a key prerequisite for this growth. If things fall into place, IoT has the potential to provide substantial benefits.