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  • Missile Park ‘AGNEEPRASTHA’

    Foundation Stone for a Missile Park “AGNEEPRASTHA” was recently laid at INS Kalinga, Vizag.

    Caution: Agneeprastha is a missile park of the eastern naval command of the Indian Navy. It has nothing to do with the Agni missiles.

    Missile Park ‘Agneeprastha’

    • ‘Agneeprastha’ aims to capture glimpses of Missile History of INS Kalinga since 1981 till date.
    • The Missile Park has been set up with a replica of missiles and Ground Support Equipment (GSE) that showcase the evolution of missiles handled by the unit.
    • The exhibits have been created from scrap / obsolete inventory which have been reconditioned in-house.
    • The main attraction is P-70 ‘Ametist’, an underwater launched anti-ship missile from the arsenal of the old ‘Chakra’ (Charlie-1 submarine) which was in service with IN during 1988-91.
    • It will also provide a one-stop arena for motivation and stimulation of inquisitive minds regarding the missiles and related technologies, from school children to naval personnel and their families.

  • Foreign direct investment (FDI) in India

    The FDI in India grew by 13% to a record of $49.97 billion in the 2019-20 financial years, according to official data.

    Get aware with the recently updated FDI norms. Key facts mentioned in this newscard can make a direct statement based MCQ in the prelims.

    Ex. FDI source in decreasing order: Singapore – Mauritius – Netherland – Ceyman Islands – Japan – France

    Data on FDI

    • The country had received an FDI of $44.36 billion during April-March 2018-19.
    • The sectors which attracted maximum foreign inflows during 2019-20 include services ($7.85 billion), computer software and hardware ($7.67 billion), telecommunications ($4.44 billion), trading ($4.57 billion), automobile ($2.82 billion), construction ($2 billion), and chemicals ($1 billion).
    • Singapore emerged as the largest source of FDI in India during the last fiscal with $14.67 billion investments.
    • It was followed by Mauritius ($8.24 billion), the Netherlands ($6.5 billion), the U.S. ($4.22 billion), Caymen Islands ($3.7 billion), Japan ($3.22 billion), and France ($1.89 billion).

    What is FDI?

    • An FDI is an investment in the form of a controlling ownership in a business in one country by an entity based in another country.
    • It is thus distinguished from a foreign portfolio investment by a notion of direct control.
    • FDI may be made either “inorganically” by buying a company in the target country or “organically” by expanding the operations of an existing business in that country.
    • Broadly, FDI includes “mergers and acquisitions, building new facilities, reinvesting profits earned from overseas operations, and intra company loans”.
    • In a narrow sense, it refers just to building a new facility, and lasting management interest.

    FDI in India

    • Foreign investment was introduced in 1991 under Foreign Exchange Management Act (FEMA), driven by then FM Manmohan Singh.
    • There are two routes by which India gets FDI.

    1) Automatic route: By this route, FDI is allowed without prior approval by Government or RBI.

    2) Government route: Prior approval by the government is needed via this route. The application needs to be made through Foreign Investment Facilitation Portal, which will facilitate the single-window clearance of FDI application under Approval Route.

    • India imposes a cap on equity holding by foreign investors in various sectors, current FDI in aviation and insurance sectors is limited to a maximum of 49%.
    • In 2015 India overtook China and the US as the top destination for the Foreign Direct Investment.

    Back2Basics

    Amendment in the FDI Policy for curbing opportunistic takeovers/acquisitions of Indian companies

  • India-Pak cooperation against Locusts Attack

    As another locust swarm comes from Pakistan, the spotlight is again on the India-Pakistan dynamic that has come into play.

    Do you know?

    The Food and Agricultural Organization (FAO) believes locusts have decimated close to 70,000 hectares of crops in Kenya, 30,000 hectares in Ethiopia and 42,000 hectares of crops in the state of Rajasthan.
    Just so you can perhaps assess the kind of damage we are talking about here. A large swarm can eat as much as about 35,000 people in one day 😀 !

    What are Locusts?

    • The desert locust (Schistocerca gregaria) is a short-horned grasshopper that is innocuous while it is in a “solitary phase” and moving about independently.
    • These winged insects differ from normal hoppers and become dangerous only when their populations build up rapidly and the close physical contact in crowded conditions triggers behavioural changes.
    • They, then, enter the “gregarious phase”, by grouping into bands and forming swarms that can travel great distances (up to 150 km daily), while eating up every bit of vegetation on the way.
    • If not controlled at the right time, these insect swarms can threaten the food security of countries.

    India reaches out to Pak

    • The Ministry of External Affairs said that it has reached out to Pakistan for cooperation, and is awaiting their response.
    • Despite the ups and downs in the bilateral relationship, cooperation on the locust warning system has survived the wars, terrorist attacks, and political turmoil.

    History of outbreaks in India

    • Records suggest that since the beginning of the 19th century, there have been at least eight “outbreaks” in India from 1812 to 1889, and a ninth in 1896-1897.
    • According to the history of the Locust Warning Office published by the UN Food and Agriculture Organization (FAO), there were “serious invasions” of locusts in India every few years during the 1900s.
    • A “five-year invasion” from 1926 to 1931 is estimated to have damaged crops worth Rs 2 crore (about $100 million at today’s prices).
    • The princely states and provinces had their own structures to deal with this, but there was no coordination.

    The Locust Warning Organization (LWO)

    • After the 1926-32 “invasion”, the British Indian government-sponsored a research scheme, starting in 1931, which led to the permanent Locust Warning Organization (LWO) in 1939.
    • It had its headquarters in New Delhi and a substation in Karachi.
    • In 1941, a conference of princely states in desert areas and provinces affected by locusts was held.
    • Its role was expanded in 1942, and in 1946 a bureaucratic structure was put in place.

    Beginning of cooperation

    • Iran too suffered locust attacks, in 1876, and in 1926-1932.
    • Apparently the first case of collaboration between countries in the region occurred in 1942 when a delegation from India helped with locust control work in southwest Persia.
    • Over the next two years, Indian help was also provided to Oman and Persia.
    • This was followed by the first conference within the region on Desert Locust, which was held in Tehran in 1945 and involved Iran, India, Saudi Arabia and Egypt.
    • A second conference took place in 1950 also in Tehran with Pakistan participating.

    Bringing in Pakistan

    • In the 1950s, India and Iran cooperated and Pakistan provided two aircraft for locust surveys in Saudi Arabia.
    • Following another attack during 1958-61, a decision was taken to group Iran, Afghanistan, Pakistan and India together and the FAO Desert Locust commission was formed in 1964.
    • The commission held annual sessions skipped in 1965 and 1999 but held in 1971.
    • Even in the last six years when the relationship between India and Pakistan has deteriorated, it has been held in 2014, 2016 and 2018.
    • The meetings are attended by locust control experts, with no diplomats.

    India and Pakistan

    • In 1977, the two countries began to meet on the border.
    • From 1991 to 2003, special border surveys took place during the summer, undertaken by locust control officers in their respective countries.
    • Joint border meetings have taken place every year since 2005 till 2019, except in 2011. This has been despite every diplomatic strain; including the 26/11 Mumbai attacks.
    • Arrangements are made in advance and protocols are followed for crossing the border.
    • While politics and diplomacy is kept out of the technical discussions, locust control authorities feel that one of the more difficult challenges faced by the commission is that of “insecurity and sensitivities” in the region.

    Also read:

    Risk of Early Locusts Attacks: A new concern

    Try this:

    Q. Time and again normal ocean cycles got more pronounced or disrupted, resulting in all kinds of unintended consequences, like an ever-increasing domino effect of locust attacks in Asia and the Indian Sub Continent. We need to understand these links if we are to plan effectively for climate change mitigation and adaptation. Discuss. (250W)

  • [pib] Instant PAN through Aadhaar based e-KYC

    The Union Finance Ministry has launched the facility for instant allotment of (Permanent Account Number) PAN.

    Try this question from CSP 2018:

    Q.) Consider the following gatemen.

    1. Aadhaar card can be used as a proof of citizenship or domicile.

    2. Once issued, the Aadhaar number cannot be deactivated or omitted by the Issuing Authority.

    Which of the statements given above is/are correct?

    (a) 1 only

    (b) 2 only

    (c) Both 1 and 2

    (d) Neither 1 nor 2

    Can’t you expect a similar question based on PAN card? If not , go through this newscard.

    What is a Permanent Account Number?

    • A PAN is a ten-character alphanumeric identifier, issued in the form of a laminated “PAN card”, by the Income Tax Department.
    • It is issued to any “person” who applies for it or to whom the department allots the number without an application.
    • A PAN is a unique identifier issued to all judicial entities identifiable under the Indian Income Tax Act, 1961.
    • The income tax PAN and its linked card are issued under Section 139A of the Income Tax Act.
    • It is issued by the Indian Department under the supervision of the Central Board for Direct Taxes (CBDT) and it also serves as an important proof of identification.
    • It is also issued to foreign nationals (such as investors) subject to a valid visa, and hence a PAN card is not acceptable as proof of Indian citizenship.

    Uses of PAN

    • The primary purpose of the PAN is to bring a universal identification to all financial transactions and to prevent tax evasion by keeping track of monetary transactions.
    • The PAN is mandatory when filing income tax returns, tax deduction at source, or any other communication with the IT Department.
    • PAN is also steadily becoming a mandatory document for opening a new bank account, a new landline telephone connection / a mobile phone connection, purchase of foreign currency, bank deposits above ₹50,000, purchase and sale of immovable properties, vehicles etc.

    Why it is in the news?

    • A PAN is necessary for filing income tax returns.
    • This facility is now available for those PAN applicants who possess a valid Aadhaar number and have a mobile number registered with Aadhaar.
    • The allotment process is paperless and an electronic PAN (e-PAN) is issued to the applicants free of cost.

  • How effective is the stimulus package to revive the supply chains?

    Disruption of the supply chains lies at the heart of the decline in the output amid lockdown. And the government has announced the fiscal stimulus to revive the economy. How effective will be the fiscal stimulus to streamline the supply chains? The focus of this article is on tackling this question.

    Disruption in supply chains and decline in output

    • Much of the decline in output is due to supply chain disruptions generated by the lockdown.
    • Government spending can do little to alleviate this.
    • Putting money in the hands of people can increase the demand for goods but cannot increase the supply of goods and services.
    • In modern economies, the production of goods happens through complex supply chains that traverse geographical boundaries.

    Let’s understand how supply chains work

    •  Upstream sectors like ‘mining’ produce metals that are in turn used to produce machines.
    • These machines are used to sow seeds, harvest crops, and transport fuel.
    • Finally, the harvested crops are used by downstream sectors to produce flour and bread.
    • At each step, machines and labour combine to produce goods which are the inputs for sectors further downstream.

    So, how lockdown affected the supply chains?

    • Under the lockdown, numerous inputs have not moved from their producers to their users.
    • These disruptions may not at first generate a reduction in consumer goods like bread.
    • However, the availability of consumer goods will begin to decline as bakers run out of flour, and mills exhaust their stocks of wheat.
    • And there is no way to guarantee the flow of essential goods while suspending the production of non-essential goods.
    • Automotive spare parts may be non-essential in the short run, but become essential as food-carrying trucks begin to break down.(i.e. in the long run)
    • How far is the long run? This is difficult to say; there may be some variation across goods.

    Impact of labour shortage on supply chains

    • The supply chain disruptions are going to be amplified by labour shortage as workers remain at home.
    • Countries like India are likely to experience a greater reduction in output on this count than, say, Europe or the U.S.
    • This is because of the higher labour intensity of production in India.
    • To understand this, think of the difference in unloading of goods in the port at Rotterdam and the port at Kochi.
    • Is it viable to substitute labour with capital? Poorer countries are less likely to be able to substitute locked down labour with capital because of the dearth of capital in these nations.

    Adapting and Adjusting to the new reality

    • As economies emerge out of the lockdown, entrepreneurs, workers, and consumers must adjust to the new reality.
    • The world supply chain must adapt.
    • Firms may choose to source inputs from suppliers in their geographical proximity to minimise the risk of future disruptions.
    • But this involves building productive capacity at new locations, all of which requires investments fuelled by savings.
    • Furthermore, the investments must be guided by price signals.
    • Within a market economy, the movement of prices provides the incentive and information needed to adapt and grow.
    • As economist Ronald Coase put it, prices are bundles of information wrapped in an incentive.
    • As the prices of some inputs rise, the buyers of these inputs look for alternate suppliers, and firms which did not hitherto produce the good have an incentive to do so.
    • The key to economic recovery lies in millions of such adjustments.
    • Through such adjustments, firms locate new providers of inputs, new buyers of their output, and build factories at new locations.

    How fiscal stimulus would disrupt the recovery of supply chains?

    • Market adjustment processes are likely to be disrupted by government stimulus packages.
    • Governments spend by printing money, raising debt, or increasing taxes.
    • Irrespective of the way in which the expenditure in funded, resources are transferred from private entrepreneurs to government bureaucrats.
    • When governments print money, they draw resources through inflation.
    • Bureaucrats tend to be less efficient than profit-motivated firms in allocating scarce resources.
    • Bureaucrats have little incentive or information to bring about the granular supply chain adjustments necessary to revive growth.
    • As the stimulus package kicks in, economic efficiency is likely to decline and so are the chances of a timely recovery of output.

    A lesson from West Germany after WW II

    • The experience of West Germany after World War II has a useful lesson for India.
    • Beginning mid-1944, Allied bombing disrupted the German supply chain by targeting bottleneck sectors like electric power generation.
    • This destruction of the supply chain devastated the German economy.
    • Per person food production fell to about half of its pre-war level.
    • Two years later, this changed after Chancellor Ludwig Erhard lifted price controls and cut taxes.
    • West German entrepreneurs re-established a thriving supply chain through which goods went from upstream sectors to final consumers.
    • By 1950, per capita income in West Germany had reached its pre-war level.

    Consider the question “Supply chain disruption has been at the core of economic consequences of the corona pandemic. New adjustment in the supply chains would be the norm in the aftermath of the pandemic. What these readjustments would entail? Suggest the measures to help the supply chains recover.”

    Conclusion

    The recent supply chain disruptions are likely to last long. The path to recovery lies in cutting government expenditure, removing price controls, and opening up trade.

  • What is the Korean Armistice Agreement?

    A United Nations investigation into a recent exchange of gunfire between North Korea and South Korea inside the Demilitarized Zone (DMZ) has determined that both countries violated the armistice that ended the 1950-53 Korean War.

    Practice question for mains:

    Q. What is the Korean Armstice Agreement? Discuss the concept of the Demilitarized Zone (DMZ)?

    The Korean Armstice Agreement

    • The Korean Armstice Agreement signed on 27 July 1953 is the armistice that brought about a complete cessation of hostilities of the Korean War.
    • It was not the end of a war, but only a cessation of hostilities in an attempt to negotiate a lasting peace.
    • Military commanders from China and North Korea signed the agreement on one side, with the US-led United Nations Command signing on behalf of the international community.

    What is the Demilitarized Zone (DMZ)?

    • The DMZ marks where the 1950-53 Korean War — when China and North Korea battled UN forces led by the United States — ended with an armistice, not a treaty.
    • It is a 2 km-wide buffer, stretching coast to coast across the peninsula, lined by both sides with razor wire, heavy armaments and tank traps.
    • It is 60 km from Seoul and 210 km from the North Korean capital of Pyongyang. Inside the DMZ is a Joint Security Area (JSA).
    • The so-called ‘peace village’ of Panmunjom, where the armistice that halted the Korean War was signed in 1953, is located in the 800-metre-wide and 400-metre-long JSA zone.
    • A Military Demarcation Line (MDL) marks the boundary between the two Koreas.

    Why it is significant?

    • Vast stretches of the DMZ have been no man’s land for more than 60 years, where wildlife has flourished undisturbed.
    • Last year, US President Donald Trump met with North Korean leader Kim Jong Un at the demilitarized zone separating the two Koreas, in Panmunjom.

  • What is the doctrine of Force Majeure?

    The recent spread of the Coronavirus has triggered a global slowdown and has rendered ongoing business operations of several organisations to almost a standstill. This has resorted them to invoking the ‘force majeure’ clause to seek some relief.

    Practice question for mains:

    Q) What is the doctrine of Force Majeure and Frustration of a Contract? Discuss how it can worsen the NPA crisis in India.

    What is Force Majeure?

    • Force majeure is purely a contractual remedy available to an affected party under a contract and for seeking relief, the reference would be to the express terms of the contract.
    • It is a contractual provision allocating the risk of loss if performance becomes impossible or impracticable, especially as a result of an event that the parties could not have anticipated or controlled.
    • While force majeure has neither been defined nor specifically dealt with, in Indian statutes, some reference can be found in Section 32 of the Indian Contract Act, 1872 (the “Contract Act”).
    • It envisages that if a contract is contingent on the happening of an event which event becomes impossible, then the contract becomes void.

    Where are such clauses found?

    • Force majeure clauses can usually be found in various contracts such as power purchase agreements, supply contracts, manufacturing contracts, distribution agreements, project finance agreements, agreements between real estate developers and home buyers, etc.

    Circumstances qualified for force majeure

    • A force majeure clause typically spells out specific circumstances or events, which would qualify as force majeure events, conditions which would have be fulfilled for such clause to apply.
    • As such, for a force majeure clause to become applicable the occurrence of such events should be beyond the control of the parties.
    • The parties will be required to demonstrate that they have made attempts to mitigate the impact of such force majeure event.
    • If an event or circumstance qualifies, the consequence would be that parties would be relieved from performing their respective obligations to be undertaken by them under the contract.

    Why it is in news, now?

    • Due to the lockdown restrictions placed by the government, the parties’ ability to perform and fulfil their contractual obligations is affected.
    • Where the contract does not specifically cover the current situation is a matter of debate.
    • The Indian Contract Act, 1872 is more than a century old and does not have any specific provisions relating to suspension of contracts or termination of contracts in cases of a pandemic.
    • The Act clearly provides that an agreement to do an act impossible in itself is void (Section 56).
    • After a contract is made, if any act becomes impossible or unlawful by reason of some event, such a contract becomes void.

    What is the difference between force majeure and frustration of a contract?

    • Under the doctrine of frustration, the impossibility of a party to perform its obligations under a contract is linked to the occurrence of an event/circumstance subsequent to the execution of a contract and which was not contemplated at the time of execution of the contract.
    • However, under in case of a force majeure, parties typically identify, prior to the execution of a contract, an exhaustive list of events, which would attract the applicability of the force majeure clause.
    • The doctrine of Frustration renders the contract void and consequently, all contractual obligations of the parties cease to exist.

    What did the Supreme Court say?

    • Recently, the Supreme Court observed that the doctrine of frustration as enumerated in the Act would apply only where the parties have not specified the consequences of an event which renders the performance of the contract impossible.
    • Termination of a frustrated contract would be possible only in cases where the contract becomes impossible to perform which means the damage to the contract should be of permanent nature and not something which can be performed with the passage of time.
    • Hence a temporary inability or force majeure event would not qualify under the doctrine.

    What lies ahead?

    • The force majeure clause in contracts should not be misconstrued as an event of frustration covered under the Act.
    • Force majeure is purely a contractual remedy available to an affected party under a contract and for seeking relief; the reference would be to the express terms of the contract.
    • However, a party claiming frustration of contract and seeking to escape liability or other obligation under a contract will necessarily have to approach an appropriate judicial forum.
    • It is likely that ‘force majeure’ clauses in contracts need to be more heavily negotiated to include references to epidemics or pandemics, in addition to other situations.

  • Species in news: Dugong

    The dugong, commonly known as the sea cow, is fighting for its survival in Indian waters experts have said on the eve of ‘World Dugong Day’ on May 28, 2020.

    Try this question from CSP 2015:

    Q) With reference to ‘dugong’, a mammal found in India, which of the following statements is/are correct?

    1) It is a herbivorous marine animal.

    2) It is found along the entire coast of India

    3) It is given legal protection under Schedule 1 of the Wildlife (Protection) Act, 1972.

    Select the correct answer using the code given below.
    (a) 1 and 2
    (b) 2 only
    (c) 1 and 3
    (d) 3 only

    Dugong

    • Dugongs are mammals, which means they give birth to live young and then produce milk and nurse them.
    • It is the flagship animal of Gulf of Mannar Marine National Park.
    • Once the female is pregnant, she will carry the unborn baby, called a foetus for 12-14 months before giving birth.
    • Female dugongs give birth underwater to a single calf at three to seven-year intervals.
    • Dugongs graze on seagrass, especially young shoots and roots in shallow coastal waters. They can consume up to 40 kilograms of seagrass in a day.
    • Dugongs are an IUCN Endangered marine species like sea turtles, seahorses, sea cucumbers and others.
    • They are protected in India under Schedule I of the Wild (Life) Protection Act, 1972.

    Threats to dugongs

    • Human activities such as the destruction and modification of habitat, pollution, rampant illegal fishing activities, vessel strikes, unsustainable hunting or poaching and unplanned tourism are the main threats to dugongs.
    • The loss of seagrass beds due to ocean floor trawling was the most important factor behind dwindling dugong populations in many parts of the world.

    Why needs urgent attention?

    • There were just 250 dugongs in the Gulf of Mannar in Tamil Nadu, the Andaman and Nicobar Islands and the Gulf of Kutch in Gujarat according to the 2013 survey report of the Zoological Survey of India (ZSI).
    • Hundreds of dugongs inhabited waters off the Odisha, West Bengal and Andhra Pradesh coasts two centuries back. But they are extinct in these areas now, he added.
    • Seagrass in Odisha’s Chilika Lake is a proper habitat for dugongs. However, there is not an extant population in Chilika.

    Other facts:

    • The 13th CoP of the Convention on the Conservation of Migratory Species of Wild Animals (CMS), an environmental treaty under the aegis of the UNEP, was hosted by India this year at Gandhinagar in Gujarat.
    • India is a signatory to the CMS since 1983.
    • India has signed non-legally binding Memorandums of Understanding with CMS on the conservation and management of Siberian Cranes (1998), Marine Turtles (2007), Dugongs (2008) and Raptors (2016).
    • Proper conservation is the only way to save dugongs from extinction. Conservation in other places like Australia has seen their population crossing 85,000.

  • R&D: Path to self-reliant India

    What does it take to be self-reliant? (Hint: R&D!) This is the question this article tries to answer.  After independence, we had a good start in R&D. But what went wrong? What was the role played by globalisation? Did the globalisation deliver on its promise of technology transfer? And finally, what lies on the way forward for India? This article answers all such question.

    What went wrong: historical perspective

    • India chose the path of self-reliance in state-run heavy industries and strategic sectors after independence.
    • In the decades following independence, this choice of self-reliance had placed India ahead of most developing countries.
    • In the 1970s and 80s, however, India did not modernise these industries to climb higher up the technological ladder.
    • The private sector, which had backed the state-run core sector approach in its Bombay Plan, stayed content with near-monopoly conditions in non-core sectors in a protected market.
    • Little effort was made to modernise light industries or develop contemporary consumer products.
    • India’s industrial ecosystem was thus characterised by low productivity, poor quality and low technology, and was globally uncompetitive.

    What did India lose in the ‘lost decades’?

    • India completely missed out on the ‘third industrial revolution’.
    • Third industrial revolution comprised electronic goods, microprocessors, personal computers, mobile phones and decentralised manufacturing and global value chains during the so-called lost decade(s).
    • Today, India is the world’s second-largest smartphone market.
    • However, it does not make any of these phones itself.
    • India manufactures only a small fraction of solar photovoltaic cells and modules currently used, with ambitious future targets.

    What happened to ‘self-reliance’ after India embraced globalisation?

    • At the turn of the millennium, when India embarked on liberalisation, privatisation and globalisation.
    • So, the very concept of self-reliance was rubbished.
    • This happened in the belief that it was like reinventing the things already invented and wasting money on it.
    • And when advanced technologies could simply be bought from anywhere at lower costs. 
    • Two related ideas have prevailed since then, and neither delivered the desired results.

    So, what are these two basic ideas?

    1. Unsuitability of PSUs in the globalised world

    • The first idea was that public sector undertakings (PSUs) are, by definition, inefficient and sluggish for the competitive globalised scenario.
    • No effort was made to engender either real autonomy or a transition to new technological directions.
    • Instead, PSUs with capability and scale were undermined or abandoned, along with many nascent research and development (R&D) efforts, for instance, in photovoltaics, semiconductors and advanced materials.

    So, what was the result of this attitude towards PSUs?

    • The private sector displayed little interest in these heavy industries and showed no appetite for technology upgradation.
    • With entry of foreign corporations, most Indian private companies retreated into technology imports or collaborations.
    • Even today, most R&D in India is conducted by PSUs.
    • And much of the smaller but rising proportion of private sector R&D is by foreign corporations in information technology and biotechnology/pharma.
    • Conclusion: Given the disinclination of most of the private sector towards R&D and high-tech manufacturing, significant government reinvestment in PSUs and R&D is essential for self-reliance.

    2. Foreign companies were expected to bring new technologies in India

    • The second idea was that inviting foreign direct investment and manufacturing by foreign majors would bring new technologies into India’s industrial ecosystem.
    • This was thought to obviate the need for indigenous efforts towards self-reliance.

    So, what happened on the ground?

    • But mere setting up of manufacturing facilities in India is no guarantee of absorption of technologies.
    • There is no evidence from any sector that this has taken place or has even been attempted.
    • The fact is, foreign majors jealously guard commercially significant or strategic technologies in off-shore manufacturing bases.
    • Conclusion: The key problem of self-reliance is therefore neither external finance nor domestic off-shore manufacturing, but resolute indigenous endeavour including R&D.

    Let’s look at experience of other Asian countries towards self-reliance

    Three models emerge from Asian countries.

    1. Focus on technology and industries

    •  Japan’s post-war success, was seen as a template by some countries to follow.
    • These include countries like South Korea, Taiwan, Singapore and Hong Kong
    • These countries took huge technological and industrial strides in the 1970s and 80s.
    • South Korea emerged as a global powerhouse in manufacturing, but also in indigenously developed technologies.
    • Taiwan developed technologies and manufacturing capacities in robotics and micro-processors.
    • While Singapore and Hong Kong adapted advanced technologies in niche areas.
    • These self-reliant capabilities were enabled, among other factors, by planned state investments in R&D including basic research (3-5% of GDP), technology and policy support to private corporations, infrastructure and, importantly, education and skill development (4-6% of GDP).

    2. Focus on off-shore manufacturing and not on self-reliance

    • Countries like Thailand, Malaysia, Indonesia and Vietnam have focused on off-shore manufacturing lower down the value chain and without the thrust on self-reliance.
    • This is useful for job creation but is an unsuitable model for a country of India’s size and aspirations.

    3. China: Transition from low-end manufacturing to dominant role in supply chains

    • China is, of course, unique in scale and in its determination to become a superpower not just geopolitically but also in self-reliant S&T and industrial capability.
    • China advanced purposefully from low-end mass manufacturing to a dominant role in global supply chains.
    • It has now decided on shifting to advanced manufacturing.
    • It has set itself a target of becoming a world leader by 2035 in 5G, supercomputing, Internet of Things (IoT), artificial intelligence (AI), autonomous vehicles, biotech/pharma and other technologies of the ‘fourth industrial revolution’.

    Way forward for India

    • India may well have missed the bus in many of technologies in which the U.S., Europe and China have established perhaps insurmountable leads.
    • Yet, self-reliant capabilities in electric and fuel cell vehicles, electricity storage systems, solar cells and modules, aircraft including UAVs, AI, robotics and automation, biotech/pharma and others are well within reach.
    • Large-scale concerted endeavours would, however, be required, since self-reliance will not happen by itself.
    • State-funded R&D, including in basic research, by PSUs and research institutions and universities needs to be scaled-up significantly, well above the dismal 1% of GDP currently.
    • Upgraded and reoriented PSUs would also be crucial given their distinctive place in the ecosystem.
    • Private sector delivery-oriented R&D could also be supported, linked to meaningful participation in manufacturing at appropriate levels of the supply chain.
    • India’s meagre public expenditure on education needs to be substantially ramped up including in skill development.

    Consider the question “The path to the self-reliance of any country goes through robust capabilities in the R&D. Comment”

    Conclusion

    Self-reliance would need a paradigm shift in our approach toward many things. First and foremost is the R&D. Potential of the PSUs has to be tapped to their fullest in the realms of R&D. The second area of focus should be education. These two areas are the key to achieve self-reliance and should be the focus of policymakers.

    Back2Basics: Bombay Plan

    • The Bombay plan was a set of proposal of a small group of influential business leaders in Bombay for the development of the post-independence economy of India.
    • This plan was published in two parts or volume- first in 1944 and second in 1945.
    • The prime objectives of the plan were to achieve a balanced economy and to raise the standard of living of the masses of the population rapidly by doubling the present per capita income within a period of 15 years from the time the plan goes into operation.

     

  • What is South Atlantic Anomaly?

    New data obtained by the European Space Agency (ESA) Swarm satellites has revealed the existence of a mysterious anomaly weakening the Earth’s magnetic field. Termed as ‘South Atlantic Anomaly’, it extends all the way from South America to southwest Africa.

    The term ‘South Atlantic Anomaly’ at its first sight looks similar to any climate/oceanic current related phenomena. But it’s not! This is where you can end up losing 2.66 marks in the prelims!

    What is South Atlantic Anomaly (SAA)?

    • The SAA is referred to the behaviour of Earth’s Geo-Magnetic field in an area between Africa and South America.
    • The SAA is an area where the Earth’s inner Van Allen radiation belt comes closest to the Earth’s surface, dipping down to an altitude of 200 kilometres.
    • This leads to an increased flux of energetic particles in this region and exposes orbiting satellites to higher-than-usual levels of radiation.
    • The effect is caused by the non-concentricity of the Earth and its magnetic dipole.
    • The SAA is the near-Earth region where the Earth’s magnetic field is weakest relative to an idealized Earth-centered dipole field.

    Weakening of the magnetic field

    • Over the last 200 years, the magnetic field has lost around 9% of its strength on a global average.
    • A large and rapid shrink has been observed in the SAA region over the past 50 years just as the area itself has grown and moved westward.
    • The weakening of the magnetic field is also causing technical difficulties for the satellites and spacecraft orbiting the planet.
    • The study conducted between 1970 and 2020, said that the magnetic field weakened considerably in a large region stretching from Africa to South America, known as the ‘SAA’.
    • This area has grown and moved westward at a rate of around 20 km per year.

    Its impact

    • The magnetic shield has an important role to play in keeping unwanted radiation away as well as helping determine the location of magnetic poles.
    • Even though unlike global warming or any weather change, this anomaly doesn’t directly impact human lives, it could actually bring on a change in the way we access technology.
    • The reversal and apparent shift, which could keep extending could actually impact satellite and telecommunication system, which means that some of the internet and mobile phone functioning which depend on satellite signals can possibly get disrupted.
    • It could also affect the mapping and navigation systems in smartphones.
    • The weakening of earth’s magnetic field could also impact migratory movement.
    • Birds, animals- all those who migrate with the change in season depend on the earth’s mapping to move about can find it a little difficult.
    • This is only a possibility, but we don’t know the extent of the damage till now.

    About the Van Allen Radiation Belt

    • A Van Allen radiation belt is a zone of energetic charged particles, most of which originate from the solar wind, that are captured by and held around a planet by that planet’s magnetic field.
    • The belts are located in the inner region of Earth’s magnetosphere. The belts trap energetic electrons and protons.
    • Earth has two such belts and sometimes others may be temporarily created.
    • Most of the particles that form the belts are thought to come from solar wind and other particles by cosmic rays.
    • By trapping the solar wind, the magnetic field deflects those energetic particles and protects the atmosphere from destruction.

    Also read:

    https://www.civilsdaily.com/news/shifting-north-magnetic-pole-forces-urgent-navigation-fix/

    Back2Basics: Swarm  Constellation

    • Swarm is a European Space Agency (ESA) mission to study the Earth’s magnetic field.
    • It is ESA’s first constellation of satellites for Earth observation.
    • The Swarm constellation consists of three satellites (Alpha, Bravo and Charlie) placed in two different polar orbits, two flying side by side at an altitude of 450 km and a third at an altitude of 530 km.