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  • [Burning Issues] Atmanirbhar Abhiyan Package

     

    Today we decode parts of the “20 lakh crore” Economic Package.

    Fair warning though. It’s a long  journey to walk!

    • The COVID-19 pandemic and the prolonged national lockdown have brought the Indian economy to a standstill.
    • The various announcements made by the Finance Minister concluded the relief measures undertaken in five tranches by the government as part of the economic package announced by PM Modi for ‘Atmanirbhar Bharat’.

    Impacts of COVID-19 on Economy: Broad Picture

    Given an uncertain future for the rest of the year, it can be clearly seen that the Indian economy is contracting.

    • That is, it will produce less in 2020-21 than it did in 2019-20. This means the Gross Value Added across sectors — agriculture, industry and services — will fall.
    • As incomes fall, three things will happen.
    • One, individuals will cut down their expenditure. In particular, all discretionary expenditure — be it an additional pack of cigarettes or a new car or a house — will come down sharply.
    • Two, seeing overall demand fall, businesses, which were already not investing, will likely postpone their investments further.
    • Three, the government revenues will take a massive hit. This means that if the government wants to maintain its level of fiscal deficit (the gap between what it earns as revenues and what it spends), it will have to cut its overall expenditure this year.
    • These three types of “expenditures” — by individuals, businesses and government — essentially make up the GDP of India.
    • There is a fourth component called net exports (that is, the net of exports and imports), but with the global demand plummeting as well, this too is unlikely to help matters.

    Atmanirbhar Bharat: With a special package

    • PM has announced a special economic package and gave a clarion call for Self-reliant India.
    • This package, taken together with earlier announcements by the government during COVID crisis and decisions taken by RBI, is to the tune of Rs 20 lakh crore, which is equivalent to almost 10% of India’s GDP.
    • The package will also focus on land, labour, liquidity and laws. It will cater to various sections including cottage industry, MSMEs, labourers, middle class, and industries, among others.

    Complete details of the package

    First Tranche: Rs 5,94,550 crore

    • The first set of relief measures announced by Nirmala Sitharaman focused on enabling the Indian economy’s backbone – MSMEs that employ around 11 crore people and have a GDP share of approximately 29 per cent.
    • Out of the 16 announcements made by the minister, six were dedicated to the MSME segment to infuse liquidity.
    • This included Rs 3 lakh crore collateral-free loans and Rs 50,000 crore equity infusions for MSMEs through Fund of Funds.
    • Liquidity relief measures worth Rs 30,000 crore were also announced for NBFCs, HFCs etc. and Rs 90,000 crore for power distribution companies.
    • The minister also advised states and regulatory authorities for extending the registration and completion date of real estate projects under RERA to de-stress developers and ensure completion of projects for home buyers to get their booked houses on time.

    Second tranche – Rs 3,10,000 crore

    • FM’s second tranche of measures catered to migrant workers and street vendors.
    • The minister introduced ‘one nation one ration card’ to allow migrant workers to buy ration from any depot in the country.
    • A special credit facility of Rs 5,000 crore was announced to support around 50 lakh street vendors who will have access to an initial Rs 10,000 working capital.
    • The minister also said that close to Rs 2 lakh crore will be given to farmers through Kisan credit cards while 2.5 crore farmers, including fishermen and animal husbandry farmers, would be able to get institutional credit at a concessional rate.
    • The government allowed states to fund the food and shelter facilities to migrant workers from the disaster response fund that would cost Rs 11,000 crore to the centre.

    Third tranche – Rs 1, 50,000 crore

    • The third tranche of the measures worth Rs 1.5 lakh crore focused on the agriculture and allied sectors including dairy, animal husbandry and fisheries as the government announced steps to strengthen the overall farm sector.
    • Sitharaman announced Rs 1 lakh crore agriculture infrastructure funds for farm-gate infrastructure including using it for setting up cold chains and post-harvest management infrastructure.
    • Other key announcements made by the minister included Rs 20,000 to be provided to fishermen through PM Matsya Sampada Yojana, and Rs 10,000 crore to formalize micro food enterprises.
    • Rs 4,000 crore for herbal cultivation, a Rs 15,000 crore Animal Husbandry Infrastructure Development Fund, Rs 500 crore for bee-keeping related infrastructure development were other packages announced by the minister.

    Fourth and fifth tranches – Rs 48,100 crore

    • The fourth instalment comprised of reforms for sectors including coal, minerals, defence production, air space management, airports, MRO, distribution companies in UTs, space sector, and atomic energy.
    • She announced easing utilization of the Indian air space to reduce air travel cost.
    • The minister also announced the commercial mining in the coal sector and privatizing discoms in metros to streamline their functions for better accountability.

    • The minister allocated an additional Rs 40,000 crore for the MGNREGA for job creation in India’s hinterland. The government had earlier allocated Rs 61,000 crore in the budget for this financial year.
    • She also announced the formulation of a new Public Sector Enterprises Policy that would allow for consolidation of the PSU firms in strategic sectors.
    • Each sector would have up to four such firms while state-owned enterprises will be privatized.

    Is this a new package?

    • The PM did not give the details, but he specified that this calculation of Rs 20 lakh crore includes what the government has already announced and the steps taken by the RBI.
    • This means the total amount of additional money — that is over and above what the government would have spent even in the absence of a COVID crisis — will not be Rs 20 lakh crore. It would be substantially less.
    • PM has included the actions of RBI, India’s central bank, as part of the government’s “fiscal” package, even though only the government controls the fiscal policy and not the RBI (which controls the ‘monetary’ policy).
    • A rough estimate suggests that the RBI’s decisions have provided additional liquidity of Rs 5-6 lakh crore since the start of the Covid-19 crisis.

    What is the approach adopted?

    • The measures taken up are largely in line of –

    1) Giving a strong supply-side push by boosting the availability of capital on easy terms

    2) Keeping income and wage support schemes to the minimum

    3) Empowering constituencies ranging from farmers and workers to businesses

    • Above all, the government seems to be keen on keeping the damage to the fiscal as low as possible.
    • The fiscal impact of the Rs. 20-lakh crore packages is estimated by economists at between 2-3% of GDP.
    • This includes withdrawals from provisions already made in the Budget for this fiscal.

    Idea behind the Atmanirbhar

    • The pillar on which the package rests is liquidity support so that businesses can be revived. This, in turn, is expected to set the economic cycle back in motion.
    • The option of a demand-side stimulus through a resort to deficit financing seems to be reserved for a future date.
    • This could be in case if the infection does not subside or a second wave begins prompting another lockdown.

    Significance of self-efficiency and self-reliance

    • Global supply chains have been disrupted and all nations have become preoccupied with meeting their own challenges.
    • The importance of local manufacturing, local market and local supply chains was realized during the pandemic time. All our demands during the crisis were met ‘locally’.
    • Now, it was a ripe time to be vocal about the local products and help these local products become global.
    • For instance, the supply chain and global manufacturing controlled by Chinese economy got disrupted due to COVID. Thus there is a need to become self-reliant for essential goods and service like N95 masks, ventilators etc.
    • Restrictions on travel and mobility have meant tight controls over the flow of goods, services and labour across international, state and district borders.
    • The international economic order is changing; the possibility of greater economic cooperation is diminishing. So the emphasis should be on the need to leverage India’s inner potential.
    • The Self-Reliance neither signifies any exclusionary or isolationist strategies but involves the creation of a helping hand to the whole world.
    • This is neither an economic nationalism or a rejection of globalization, but a call for a new form of globalization — from profit-driven to people-centric which takes into account the needs of labours, vulnerable and have nots.

    Positives of the package

    In the numbers provided, the government has tried to project a ‘maximum bang for minimum buck’ approach.

    Most support measures have translated into forms of regulatory relief, broader liquidity support or are reflected in its contingent liabilities, rather than in the form of explicit budgetary support.

    It seems the Union government has very craftily used the COVID-19 pandemic crisis to plough through long pending, deep-rooted structural reforms. That should be welcomed.

    Other welcome moves

    • The government has done well in increasing the budget for MGNREGA by two-thirds, adding another Rs. 40,000 crore.
    • With migrants now returning to their villages, MGNREGA can be leveraged to keep them occupied with meaningful work.
    • The demand of States for higher borrowings limit has also been granted but with clear reform milestones that they have to meet.
    • The government has also used the opportunity to unleash some much-needed reforms in agriculture marketing.
    • The measures also include –

    1) opening up more sectors for private participation

    2) enhancing foreign direct investment in defence

    3) corporatizing the monolith Ordnance Factory Board, and so on

    On contract farming

    • ‘The Centre is considering introducing a law on contract farming under the Contract Act of 1872 to enable farmers to directly engage with processors, aggregators, large retailers and exporters in a fair and transparent manner.
    • It would allow private players to invest in inputs and technology in the agricultural sector.

    Criticisms of the package

    • Yet, many have openly questioned the ability of this economic package to either provide adequate immediate relief to the most distressed sections of the economy or indeed stem the rapid decline in India’s GDP growth.
    • There are multiple fronts where this package is seen as inadequate. Let us discuss that-

    1) Old demand met with conditions

    • The package contains several generic announcements which should ideally, has been a part of a normal economic agenda.
    • The industry has been demanding a package to the tune of 7% to 8% of India’s GDP of over $2.8 trillion since a long time.
    • There was nothing unusual given that similar packages have been announced by other countries to mitigate the damage done to their economies.
    • So, a package of the size of almost 10% of the GDP was offered like a masterstroke but without coming clear on the source of funding and oversight provision.

    2) Bluff over MSMEs

    • Since MSMEs have been the hardest hit, being the main employers of industrial workers, their plight is grim.
    • It is small businesses that give traction to entrepreneurial activities in the unorganised sector where migrants from rural India mostly work.
    • The redefinition of MSMEs has been long-pending and cannot be called a reform.
    • There is nothing for the States to look forward to that can serve the immediate purpose.

    3) No stakeholders consulted

    • Ideally, after the first round of an insufficient package, the government should have begun consultations with parliamentarians, states and industry representatives to prepare a well-thought-out relief package.
    • States which have been at the forefront of the war against COVID-19 have not been given the required funds to help them cope with the public health emergency.
    • They have however shouldered the high influx of returning migrant labourers from industrial locations.

    4) Job losses unaddressed

    • India’s great middle class, which is also suffering, has found no solace either; nor is it likely that they will get anything substantial from this package.
    • A large number of workers in the organised sector are facing heavy pay cuts, job losses, a sharp fall in income, and uncertainty.
    • The expansion of MGNREGA, has a negative aspect, as it could impact labour availability, as rural migrants may not rush back for jobs (construction, transport most impacted).

    5) Farmers’ plight ignored

    • The package nowhere mentions resuming normal procurement operations.
    • Farmers are finding it difficult to get the minimum support price (MSP) for their produce; a majority of them are in debt and face many obstacles.
    • Many APMCs are shut with no signs to begin normal operations. Middlemen and Adhatiyas are plunging in to purchase the produces far below the MSP.

    6) Migrant workers ignored

    • The first national lockdown was announced in the most dramatic manner late in the evening and without adequate notice.
    • This created panic among migrants and painful displacement began which could have been avoided by offering the industry a timely financial package on the eleventh hour.
    • Economic desperation might leave poor workers with no choice but to return to work. But many of them are truly worried about getting infected.
    • Though Shramik Express trains were flagged off from certain destinations to take back migrant workers to their home States, but there was another shock — the charges levied by the Indian Railways.
    • Now India faces the loss of lives and livelihoods against the backdrop of the ruling dispensation’s apathy towards the poor and the disadvantaged.

    7) Healthcare needs more attention

    • Our healthcare delivery system in most States is extremely fragile.
    • One wonders, for instance, whether Bihar can handle the consequences if the virus begins to spread with the return of millions of migrant workers back to the State.
    • Many other States also face a similar plight given the poor state of primary healthcare facilities.
    • The pandemic has exposed a hard truth: most private healthcare providers seem to be incapable of and unwilling to help even during a national crisis.

    8) Undue pressure on Banks

    • Indian MSMEs have little access to risk capital, and hence raise it from banks, calling it loans. RBI has lent billions to banks to refinance those loans.
    • It will never get its money back. The FM has, for the first time, showing some awareness of the problem.
    • But the solution is weird. GoI will facilitate— whatever that means — provision of Rs 20,000 crore as subordinate debt. That is debt that does not have to be paid until all other loans have been repaid.
    • In other words, banks will be asked to give loans with an informal guarantee that they are gifts unless the bankrupt firm starts making huge profits someday.

    9) Broader reforms lack the spark

    • India’s self-reliance package to match global stimulus numbers is perhaps the driver for the claim of a large package (USD 280bn, 10% of GDP).
    • India does not have fiscal buffers hence a large fiscal stimulus would have been a bold bet – as that could have impacted ratings and currency, if not executed properly.
    • Not much was discussed on land, labour reforms, tax rationalization or on any coherent plan to invite foreign manufacturing.
    • The government’s defence indigenization plan is not new and has been poorly executed in the past and that is also the case with commercial mining for coal.

    10) Ignoring demand stimulus

    • The problem with this approach is that there is now a desperate need for demand stimulus; the government has focussed on supply-side push.
    • A strategy to drive consumption may have worked better under prevailing conditions.
    • The options could have been suspending GST for a couple of months or at least cutting rates temporarily, combined with a liquidity boost.

    What needs to be done at this immediate hour?

    1) Food and cash transfers first

    • The immediate need is to provide free food and cash transfers to those rendered incomeless.
    • Putting money in the hands of the poor is the best stimulus to economic revival, as it creates effective demand and in local markets.
    • Hence, an immediate programme of food and cash transfers must command the highest priority.

    2) Revamp MGNREGA work

    • Millions of migrant workers have endured immense hardships to trudge back home, and are unlikely to return to towns in the foreseeable future.
    • Employment has to be provided to them where they are, for which the MGNREGS must be expanded greatly and revamped with wage arrears paid immediately.
    • And permissible work must include not just agricultural and construction work, but work in rural enterprises and in care activities too.
    • The revamped MGNREGS could cover wage bills of rural enterprises started by panchayats, along with those of existing rural enterprises, until they can stand on their own feet.

    3) The urban focus

    • In urban areas, it was absolutely essential to revive the MSMEs.
    • Simultaneously, the vast numbers of workers who have stayed on in towns have to be provided with employment and income after our proposed cash transfers run out.
    • The best way to overcome both problems would be to introduce an Urban Employment Guarantee Programme, to serve diverse groups of the urban unemployed, including the educated unemployed.
    • Urban local bodies must take charge of this programme and would need to be revamped for this purpose.

    4) The ‘care’ economy

    • The pandemic has underscored the extreme importance of a public health-care system, and the folly of privatization of essential services.
    • The post-pandemic period must see significant increases in public expenditure on education and health, especially primary and secondary health including for the urban and rural poor.
    • The “care economy” provides immense scope for increasing employment. Vacancies in public employment, especially in such activities, must be immediately filled.
    • Anganwadi and Accredited Social Health Activists/workers who provide essential services to the population, including during this pandemic, are paid a pittance and treated with extreme unfairness.

    5) Increasing revenue

    • All the tasks mentioned in the package could be financed by printing money. But in the medium term, public revenues must be increased.
    • This is not because there is a shortage of real resources which, therefore, has to take from other existing uses through taxation.
    • Rather, since much-unutilized capacity exists in the economy, the shortage is not of real resources; the government has to just get command over them.
    • A combination of wealth and inheritance taxation and getting multinational companies to pay the same effective rate as local companies through a system of unitary taxation will garner substantial public revenue.

    6) Looping in foreign capital

    • It would be argued that this might cause large financial outflows, which the country can ill-afford.
    • Contrarily, even foreign capital is more likely to be attracted to a growing economy than one in sharp decline because of a lack of stimulus.
    • Also, a fresh issue of special drawing rights by the IMF (which India has surprisingly opposed along with the United States) would provide additional external resources.

    Conclusion

    • The coronavirus disease pandemic has offered India a valuable lesson on the importance of self-reliance and self-sufficiency that we must aspire to attain the twin goals.
    • Self-reliance will prepare the country for tough competition in the global supply chain, and it is important that the country wins this competition.
    • It will not only increase efficiency in various sectors but also ensure quality.
    • In sum, the package has several notable features not all of which are COVID-19 relief. But, the government has clearly refused to borrow and spend more on boosting demand.
    • If the strategy of boosting supply works, it is fine. However, if it does not work on expected lines, the government will be faced with a bigger problem down the line.

    Way Forward

    • Several bold reforms are needed to make the country self-reliant so that the impact of crisis such as COVID can be negated in future.
    • These reforms include supply chain reforms for agriculture, rational tax system, simple and clear laws, capable human resource and a strong financial system.
    • These reforms will promote business, attract investment, and further strengthen Make in India.
    • Local Governments should be playing a key role in supporting the government’s outreach in vast belts of rural India to spread awareness about the coronavirus disease.
    • Local governments can undertake door-to-door campaigns; stitched masks; made hand sanitisers for local populations; and provided support to the local administrative and security machinery in both providing basic services to residents and enforcing the lockdown.

    Try this:

    Q. The palpable unsustainability of the earlier globalisation surfaced after the COVID outbreak means that growth in India in the coming days will have to be sustained by the home market. Examine.

     

    References

    https://www.hindustantimes.com/india-news/stimulus-package-a-lost-opportunity-bernstein/story-dedaae4OQjenIjk9oLjm7H.html

    https://indianexpress.com/article/explained/explainspeaking-why-the-atmanirbhar-bharat-abhiyan-economic-package-is-being-criticised-6414905/

    https://www.thehindu.com/opinion/op-ed/where-is-health-in-the-stimulus-package/article31609611.ece

    https://www.thehindu.com/news/national/coronavirus-package-will-migrant-workers-benefit-from-the-centres-measures/article31603590.ece

    https://www.thehindu.com/opinion/editorial/a-matter-of-relief-on-economic-stimulus-package/article31617547.ece

    https://www.financialexpress.com/economy/breakup-of-the-rs-20-lakh-crore-economic-stimulus-package-by-fm-sitharaman/1961843/

    https://thewire.in/political-economy/modis-stimulus-package-is-a-gigantic-confidence-trick-played-on-the-people-of-india

    https://economictimes.indiatimes.com/news/economy/policy/why-india-needs-to-go-vocal-for-local-stores/articleshow/75812730.cms?from=mdr

    https://www.thehindu.com/opinion/editorial/local-motif-the-hindu-editorial-on-modis-call-for-self-reliance/article31577225.ece

  • Ensuring MGNREGA lives up to its potential

    With migrant workers returning home, work demand under MGNREGA is bound to rise. Sensing that the government increased the allocation to MGNREGA. This article suggests some steps to make the MGNREGA more effective in catering to this surge in the wake of the pandemic. Some issues that plague the scheme are also examined at the end. So, what are the suggestion? and what are the issues? Read to know….

    Acknowledgement of the importance of MGNREGA

    • The government made an allocation of an additional Rs 40,000 crore as part of the stimulus package.
    • This is an acknowledgement of the importance of MGNREGA.
    • The most important part of MGNREGA’s design is its legally-backed guarantee for any rural adult to get work within 15 days of demanding it.
    • This demand-based trigger enables the self-selection of workers and gives them an assurance of at least 100 days of wage employment.

    Let’s put allocation in context of World Bank recommendations

    • Since 2012, an average of 18 per cent of the annual budgetary allocation for MGNREGA has been spent on clearing pending liabilities from the previous years.
    • Even this financial year began with pending wage and material liabilities of Rs 16,045 crore.
    • An allocation of Rs 1 lakh crore for FY 2020-21 would mean that approximately Rs 84,000 crore is available for employment generation this year.
    • This will still be the highest allocation for MGNREGA in any year since the passage of the law.
    • However, the allocation, which amounts to 0.47 per cent of the GDP continues to be much lower than the World Bank recommendations of 1.7 per cent for the optimal functioning of the programme.

    Some immediate steps to ensure the MGNREGA lives up to its potential

    • First, state governments must ensure that public works are opened in every village.
    • Workers turning up at the worksite should be provided work immediately, without imposing on them the requirement of demanding work in advance.
    • Second, local bodies must proactively reach out to returned and quarantined migrant workers and help those in need to get job cards.
    • Third, at the worksite, adequate facilities such as soap, water, and masks for workers must be provided free of cost. For reasons of health safety, MGNREGA tools should not be shared between workers.
    • The government should provide a tool allowance to all workers — some states are already providing such an allowance.
    • Fourth, procedures for implementing MGNREGA must be simplified but not diluted.
    • The pandemic has demonstrated the importance of decentralised governance.
    • Gram panchayats and elected representatives need to be provided with adequate resources, powers, and responsibilities to sanction works, provide work on demand, and authorise wage payments to ensure there are no delays in payments.
    • Fifth, as per a study by the RBI, more than half the districts in the country are under-banked.
    • The density of bank branches in rural India is even more sparse.
    • At this time, payments need to not only reach bank accounts on time, but cash needs to reach the workers easily and efficiently.
    • The limited coverage of bank infrastructure in rural areas must not be made a hurdle.
    • Attempts to distribute wages in cash, sans biometric authentication, must be rolled out.
    • Sixth, there needs to be flexibility in the kinds of work to be undertaken, while ensuring that the community and the workers are the primary beneficiaries.

    Issuse with MGNREGA

    • Over the last few years, MGNREGA had begun to face an existential crisis.
    • Successive governments capped its financial resources, and turning it into a supply-based programme.
    • Workers had begun to lose interest in working under it because of the inordinate delays in wage payments.
    • With very little autonomy, gram panchayats had begun to find implementation cumbersome.
    • Barring a few exceptions, state governments were only interested in running the programme to the extent funds were made available from the Centre.
    • Allocating work on demand, and not having enough funds to pay wages on time was bound to cause great distress amongst the workers and eventually for the state too.
    • As a result, state governments had begun to implement MGNREGA like a supply-driven scheme, instead of running it like a demand-based guarantee backed by law.

    Consider the question “With migrant workers returning to villages in the wake of corona pandemic, demand for work is likely to increase. In light of this, discuss the utility of MGNREGA and challenges it may face.”

    Conclusion

    With nearly eight crore migrant workers returning to their villages, and with an additional allocation for the year, this could be a moment for the true revival of MGNREGA. A revival led by workers themselves.

    Mahatma Gandhi National Rural Employment Guarantee Act, 2005

    • The Act aims at enhancing the livelihood security of people in rural areas by guaranteeing hundred days of wage employment in a financial year to a rural household whose adult members (at least 18 years of age) volunteer to do unskilled work.
    • The central government bears the full cost of unskilled labour, and 75% of the cost of material (the rest is borne by the states).
    • It is a demand-driven, social security and labour law that aims to enforce the ‘right to work’.
    • Ministry of Rural Development (MRD), Government of India in association with state governments, monitors the implementation of the scheme.

  • Rising incidences of Chinese Transgressions

    As tensions remain high between Indian and Chinese soldiers, the number of recorded Chinese transgressions across the disputed India-China border surged by 75 per cent in Ladakh in 2019, and the Chinese forays into Indian Territory in the first four months of the current year have also witnessed an increase compared to the same period last year.

    Chinese Transgression:

      • The border between India and China is not fully demarcated and the Line of Actual Control (LAC) is neither clarified nor confirmed by the two countries.
      • This leads to different perceptions of the LAC for the two sides while soldiers from either side try to patrol the area.
      • Observation Methods: Use of surveillance equipment, face-offs by patrols, reliable indications by locals, or evidence left by the Chinese in the form of wrappers, biscuit packets etc. in an unmanned area.
      • Official data shows that 80% of Chinese transgressions across the LAC since 2015 have taken place in four locations of which three are in eastern Ladakh in the western sector.
        • These areas of eastern Ladakh are Pangong Tso, Trig Heights and Burtse.
        • The fourth area is the Dichu Area/Madan Ridge area (Arunachal Pradesh) of the Eastern sector.

    •  Implications of Increased Number of Transgressions:

      • It is an indicator of increased Chinese assertiveness.
      • Even if there are no major incidents, it should not be taken lightly.
      • So far, there has been no major standoff between the two sides after the 73-day Doklam standoff on Sikkim-Bhutan border in 2017.

    Concerns

    • India is worried about the tensions at Naku La in Sikkim and at Galwan river and Pangong Tso in Ladakh.
    • The increased transgressions lead to more tensions between both countries which are already struggling to contain the Covid-19 pandemic.
    • Nepal’s recent behaviour on the Mansarovar Link Road raising the border map issue also raises Indian concerns.
    • The constant accusations on each other also cause tensions and disrupt the peace on borders.
      • Recently, Chinese media accused India of building defence facilities in the Galwan Valley region of the contested Aksai Chin area.
    • India and China are both nuclear-armed countries with strong militaries and the constant border conflicts are not a desirable thing.

    Way Forward

    • In the Wuhan and Mahabalipuram summits, both China and India had reaffirmed that they will make efforts to ensure peace and tranquility in the border areas.
    • On 1st April, 2020 India and China completed their 70 years of diplomatic relations.
    • Both countries have resolved border issues peacefully in the past four decades which gives the hope that the tensions will subside soon.
    • Establishment of peace between the two big powers of such an important geopolitical region is essential for their own growth and development as well as for maintenance of global peace.

    Practice question for mains:

    Q. Clear demarcation of the national borders is the need of the hour. Discuss.

  • Towards self-reliance in defence manufacturing

    External dependence for defence equipment could turn out to be the chink in the armour of any country, literally. As one of the major importer of defence equipment, India has been struggling to wean itself away from this vulnerability. This article discusses the recent changes announced by the finance minister in defence procurement and manufacturing policy. So, what are the changes and how will these changes benefit us? Read to know more…

    Promoting self-reliance: Addressing strategic and national security concern

    • Recently the Finance Minister announced measures to promote self-reliance in defence production.
    • This address long-standing strategic and national security concerns about the extent of India’s external dependence for its defence-preparedness.
    • For most of the past decade, India had the dubious distinction of being the world’s largest arms importer.
    • India accounted for about 12% of global arms imports.
    • Saudi Arabia jumped to first place in 2018 and 2019, but India still takes over 9% of global imports.
    • This external dependence for weapons, spares and, in some cases, even ammunition creates vulnerabilities during military crises.
    • COVID-19 has, once again, focused minds on the impact of supply chain disruptions on both civil and defence sectors.
    • With its security environment, its great power ambitions and its technological capacities, India should have a robust defence manufacturing capacity.
    • New Defence Procurement Procedures (DPP) 2020 are under formulation.
    • We now have a Chief of Defence Staff (CDS) tasked with promoting indigenous equipment in the armed forces.

    Following are some of the moves declared by the government and their significance for the country

    1. Encouraging  private manufacturers

    • The decision i) to notify a list of weapons systems for sourcing entirely from Indian manufacturers, ii) the promise to progressively expand this list iii) a separate Budget provision for domestic capital procurement- will encourage our private defence manufacturers.
    • The research capacities, technological skills and quality commitment of our private defence manufacturer are often better appreciated by foreign clients for whom they are subcontractors.
    • There is a range of platforms and subsystems, developed in India and qualified in trials, some of which face hurdles to their induction by our armed forces because of foreign competition.
    • These include missile systems such as Akash and Nag, the Light Combat Aircraft and the Light Combat Helicopter, artillery guns, radars, electronic warfare systems and armoured vehicles.

    2. Time-bound procurement

    • The government has promised i) a time-bound defence procurement process, ii) overhauling trial and testing procedures iii) establishing a professional project management unit.
    • To understand the significance of the above measures consider the fact below-
    • Over the past five years, the Indian government has approved over 200 defence acquisition proposals, valued at over ₹4 trillion.
    • But most are still in relatively early stages of processing.
    • Of course, this delay now provides the opportunity to re-examine them and to prioritise those with indigenous research and development.
    • The CDS could also examine them from a tri-service angle, to avoid redundancy of capacities across the services.

    3. Corporatisation of Ordnance Factory Board

    • Over the decades, our ordnance factories have been the backbone of indigenous supplies to our armed forces.
    • Their structure, work culture and product range now need to be responsive to technology and quality demands of modern armed forces.
    • Corporatisation, including public listing of some units, ensures a more efficient interface of the manufacturer with the designer and end-user.
    • The factories would be better integrated into the larger defence manufacturing ecosystem.

    4. Realistic specifications of desired weapon platforms

    • Our defence planners will frame “realistic” specifications for their desired weapons platforms.
    • These specifications should be based on the requirements of India’s defence strategy, rather than on aspirational considerations which, the Finance Minister said, may lead to a single foreign vendor.
    • It is also imperative that when we import weapon systems, we should plan for the ammunitions and spares for them to be eventually manufactured in India.
    • This will ensure that we are not driven to seek urgent replenishments from abroad during crises.
    • The same goes for repair, maintenance and overhaul facilities and, at the next level, the upgrade of weapons platforms.

    5. FDI limit increased to 74% by automatic route

    • The liberalisation of foreign direct investment in defence manufacturing, raising the limit under the automatic route to 74%, should open the door to more joint ventures of foreign and Indian companies for defence manufacturing in India.
    • It would also sustain domestic industrial activity in the research, design and manufacture of systems and sub-systems.
    • Our companies would now get the opportunity to directly contribute to Indian defence manufacturing.

    Way forward

    • The development of a thriving indigenous defence industry needs an overhaul of existing regulations and practices.
    • A long-term integrated perspective plan of the requirements of the armed forces should give industry a clear picture of future requirements.
    • DPP 2020 should incorporate guidelines to promote forward-looking strategic partnerships between Indian and foreign companies.
    • This partnership should be with a view to achieving indigenisation over a period of time for even sophisticated platforms.
    • Cost evaluation has to evolve from mechanical application of the L1 (lowest financial bid) principle to prioritising indigenous content.
    • The definition of indigenisation itself needs to privilege technology over value or volume.
    • Investment, Indian or foreign, will be viable only if the door to defence exports is opened, with a transparent policy.
    • To give private industry a level playing field for developing defence technologies, conflicts of interest, created by the role of our Defence Research and Development Organisation (DRDO) as the government’s sole adviser, developer and evaluator of technologies have to be addressed.

    Consider the question, “India has been aspiring to reduce its external dependence for defence equipment but has not succeeded in doing so. Examine the challenges in the way of self-sufficiency in this area. How effective will be the recent policy changes made in meeting the goal?”

    Conclusion

    The government has rightly clarified that self-reliance would not be taken to overzealous extremes. The thrust for indigenous research and development will coexist with the import of cutting-edge military technologies to obviate near-term defence vulnerabilities. Of the key components of any major reform — money, method and mindset — mindset is the most critical and the most intractable. It takes a crisis to change it.

     

     

     

     

  • What is Solar Minimum?

    The sun is said to have gone into a state called the ‘solar minimum’ and is about to enter the deepest period of ‘sunshine recession’ as sunspots are virtually not visibly at all.

    Practice question for Mains:

    Q. What are Solar minima and maxima? Discuss its impact on space weather and the Earth.

    What is a solar minimum and why is it happening now?

    • Sun has a cycle that lasts on average 11 years, and right now we are at the peak of that cycle.
    • Every 11 years or so, sunspots fade away, bringing a period of relative calm.
    • This is called the solar minimum. And it’s a regular part of the sunspot cycle.
    • While intense activity such as sunspots and solar flares subside during solar minimum, that doesn’t mean the sun becomes dull. Solar activity simply changes form.

    What about Solar Maximum?

    • Solar minima and maxima are the two extremes of the Sun’s 11-year and 400-year activity cycle.
    • At a maximum, the Sun is peppered with sunspots, solar flares erupt, and the Sun hurls billion-ton clouds of electrified gas into space.
    • Sky watchers may see more auroras, and space agencies must monitor radiation storms for astronaut protection.
    • Power outages, satellite malfunctions, communication disruptions, and GPS receiver malfunctions are just a few of the things that can happen during a solar maximum.

    What are its effects on Earth?

    a) On space weather

    • The Solar wind from coronal holes will temporarily create disturbances in the Earth’s magnetosphere, called geomagnetic storms, auroras, and disruptions to communications and navigation systems.
    • The space weather during solar minimum will also affect Earth’s upper atmosphere on satellites in low Earth orbit changes.
    • This means that the Earth’s upper atmosphere will cool down which is generally heated and puffed up by ultraviolet radiation from the sun.
    • However, the heat at the upper atmosphere of our planet helps Earth to drag debris and keep the low Earth orbit clear of manmade space junk.
    • Apart from this, the solar minimum will change the space weather significantly which will lead to an increase in the number of galactic cosmic rays that reach Earth’s upper atmosphere.
    • These Galactic cosmic rays are high energy particles which are a result of distant supernova explosions and other violent events in the galaxy.

    b) On astronauts

    • According to NASA the sun’s magnetic field weakens and provides less shielding from these cosmic rays during a solar minimum which will directly increase the threat to astronauts travelling through space.
    • This may cause health risks to astronauts travelling through space as the sun’s magnetic field weakens and provides less shielding from these cosmic rays.

  • India to chair ‘WHO Executive Board’

    India would now be playing a more prominent role at the World Health Organisation (WHO), with Union Health Minister taking charge as chairman of the WHO Executive Board at its 147th session.  Dr Harsh Vardhan would succeed Dr Hiroki Nakatani of Japan.

    Practice question for Mains:

    Q. The World Health Organisation (WHO) had “missed the call” on the COVID-19 pandemic. Critically comment with context to the ongoing spat between the US and China.

    About WHO

    • The WHO is a specialized agency of the United Nations responsible for international public health.
    • It is part of the U.N. Sustainable Development Group.
    • The WHO Constitution, which establishes the agency’s governing structure and principles, states its main objective as ensuring “the attainment by all peoples of the highest possible level of health.”
    • It is headquartered in Geneva, Switzerland, with six semi-autonomous regional offices and 150 field offices worldwide.

    The WHO Executive Board

    • The WHO is governed by two decision-making bodies — the World Health Assembly and the Executive Board.
    • The Board is composed of 34 members technically qualified in the field of health, with members being elected for three-year terms.
    • The Health Assembly is the WHO’s decision-making body and consists of 194 Member States.
    • The Board chairman’s post is held by rotation for one year by each of the WHO’s six regional groups: African Region, Region of the Americas, South-East Asia Region, European Region, Eastern Mediterranean Region, and Western Pacific Region.

    Functions of the Board

    • The main functions of the Board are to give effect to the decisions and policies of the Health Assembly, to advise it and generally to facilitate its work.
    • The Board and the Assembly create a forum for debate on health issues and for addressing concerns raised by the Member States.
    • Both the Board and the Assembly produce three kinds of documents — Resolutions and Decisions passed by the two bodies, Official Records as published in WHO Official publications, and Documents that are presented “in session” of the two bodies.

    Back2Basics: India at the WHO

    • India became a party to the WHO Constitution on 12 January 1948.
    • The first session of the South East Asia Regional Committee was held on October 4-5, 1948 in the office of the Indian Minister of Health, and was inaugurated by Jawaharlal Nehru, the first PM.
    • The first Regional Director for South-East Asia was an Indian, Dr Chandra Mani, who served between 1948-1968.
    • Currently, the post has again been occupied by an Indian appointee, Dr Poonam Khetrapal Singh, who has been in office since 2014.
    • Since 2019, Dr Soumya Swaminathan has been the WHO’s, Chief Scientist.

    Also read:

    [Burning Issue] World Health Organization (WHO) And Coronavirus Handling

  • [pib] New ports and routes added under the Protocol on Inland Water Transit between India and Bangladesh

    India and Bangladesh have opened a new chapter in regional connectivity by expanding the scope of inland water transport mechanism that would enable to boost trade in the region.

    Note all the ports mentioned in the newscard and the image. Also, keep a tab on river systems of North east India.

    What is the news?

    • The Standing Committee on the Protocol and the Shipping Secretary level Talks are the institutional arrangements to discuss and make the Protocol more effective.
    • During the latest discussions key decisions were taken on the extension of protocol routes, the inclusion of new routes and declaration of new Ports of Call to facilitate trade between the two countries.

    New routes

    The number of Indo Bangladesh Protocol (IBP) routes is being increased from 8 to 10 and new locations are also added to the existing routes: –

    1) Inclusion of Sonamura- Daudkhandi stretch of Gumti river (93 Km) as IBP route:

    • It will improve the connectivity of Tripura and adjoining States with Indian and Bangladesh`s economic centres and will help the hinterland of both the countries.

    2) Rajshahi-Dhulian-Rajshahi Routes and its extension up to Aricha (270 km)

    • It will help the augmentation of infrastructure in Bangladesh as it would reduce the transportation cost of stone chips/aggregate to northern part of Bangladesh through this route. It will also decongest the Land Custom Stations on both sides.

    Ports of Call

    • Port of call means an intermediate stop for a ship on its scheduled journey for cargo operation or taking on supplies or fuel.
    • The following are existing Ports of Call in the two countries on Indo-Bangladesh Protocol (IBP) route:
    India Kolkata Haldia Pandu Karimganj Silghat Dhubri
    Bangladesh Narayanganj Khulna Mongla Sirajganj Ashuganj Pangaon
    • Newly added: Two more extended Ports of Call have been added
    • Inclusion of Jogigopha in India and Bahadurabad in Bangladesh as new Port of Call will provide connectivity to Meghalaya, Assam and Bhutan.

    About the Protocol on Inland Water Transit

    • Bangladesh and India have a long-standing and time-tested Protocol on Transit and Trade through inland waterways of both countries.
    • This Protocol, which was first signed in 1972 (immediately after independence of Bangladesh), is a reflection of shared history and friendship between the two countries.
    • It was last renewed in 2015 for five years with a provision for its automatic renewal for a further period of five years giving long term assurance to various stakeholders.

  • Rajiv Gandhi Kisan Nyaya Yojana in Chhattisgarh

    The Rajiv Gandhi Kisan Nyaya Yojana has been approved by the Chhattisgarh state govt. on 19th death anniversary of the former Prime Minister, yesterday.

    Practice question for Mains:

    Q. Various income support mechanisms for farmers are more of a populist measure with no impact on ground zero. Critically examine.

    Rajiv Gandhi Kisan Nyaya Yojana

    • It is a new income support programme under which Farmers in Chhattisgarh would get up to ₹13,000 an acre a year.
    • Rice and maize farmers would get ₹10,000 an acre while sugarcane farmers would get ₹13,000. The money would be distributed in four instalments.
    • In the first instalment, ₹1,500 crores would be distributed among 18 lakh farmers, more than 80% of the small and marginal.
    • The scheme would cover rice, maize and sugarcane farmers to begin with, and would expand to other crops later.

    Benefits of the scheme

    • This will help farmers through the agricultural cycle and hopefully help with extension activities.
    • The injection of cash among the rural population would generate a demand that shielded Chhattisgarh from the economic slowdown last year.
    • This will reduce distress migration, and enhance food security for the State.

  • Tracking Chinese diplomacy

    We are no stranger to the assertive nature of China in geopolitics. But had it always been the same? This article captures the transformation of the nature of Chinese diplomacy. Two personalities that had a profound impact on the nature of the diplomacy of that country are Zhou Enlai and Deng Xiaoping. Each of them imparted special characteristic to diplomacy. Now, that all seems lost from present China. Read the article to know about the contribution of two personalities and trends in Chinese diplomacy now.

    Zhou Enlai: Preference for Persuasion and compromise

    “All diplomacy is a continuation of war by other means.” – Zhou Enlai

    • If Mao Zedong represented the crude face of Chinese communism, then Zhou was the epitome of its refinement.
    • Zhou preferred to seduce his opponents through word and gesture in the pursuit of national self-interest.
    • Force was used rarely, and only when all other means of persuasion failed.
    • So, amid Korean War in 1950, when the U.S. Army crossed into North Korea, Zhou Enlai delivered message against crossing 38th Parallel through Indian Ambassador, instead publicly declaring this.
    • He chose to give diplomacy a chance.

    Role in First Indochina War

    • In 1954, the Chinese made their entry onto the world stage in Geneva.
    • The Vietnamese were winning against the French in the First Indochina War.
    • And the Americans were preparing to intervene fearing that another “domino” would fall to communism.
    • China’s self-interest lay in ending this war while denying the U.S. a foothold in its backyard.
    • Zhou’s strategy was to undermine western unity.
    • His watchwords were persuasion and compromise.
    • He even gave “face” to the French who had just lost to the Vietnamese in the battle of Dien Bien Phu, by travelling the “extra mile” to meet Prime Minister of France to secure the peace.

    Low profile at Afro-Asian Conference in Bandung

    • In 1955, at the Afro-Asian Conference in Bandung, Zhou used the same tactics to pursue another objective: Developing relations with leaders of the Afro-Asian countries.
    • He deliberately kept a low profile, allowing Prime Minister Jawaharlal Nehru and Indonesian President Sukarno to take the lead.
    • His tactic, he reported to Mao, was “not to be involved in provocative or disruptive debate”.
    • His guidance to his team was to “strive to expand the united front of the world peace force.“
    • He also instructed the team to create conditions for establishing diplomatic work or diplomatic relations between China and a number of Afro-Asian countries.

    So, how Zhou shaped China’s foreign policy?

    • Zhou’s style of diplomacy came to define Chinese foreign policy over the next half-century.
    • The strategy was consistent: avoid isolation, build solidarity with non-aligned countries, divide the West.
    • The tactics were called ‘united front’ — isolate the main threat by building unity with all other forces.
    • Under Zhou, diplomats of calibre kept handled the task of diplomacy with skill and held firm even in storms like the Cultural Revolution.
    • When the tide rose, these diplomatic fishermen gathered the fish — expanding China’s global presence and gaining international acceptability.
    • When it ebbed, they saw to it that the ship remained firmly moored.
    • They navigated the Cold War, playing the Soviets against the Americans.
    • To relieve pressure, Zhou opened border talks with the Soviets and channels to the U.S.
    • Public animosity did not deter him from turning on the full extent of his diplomatic skills on either Alexei Kosygin or Henry Kissinger.
    • In February 1972, he persuaded U.S. President Richard Nixon to abandon Taiwan.
    • It was a staggering act of diplomacy.

    Deng Xiaoping: hide our capacities and bide our time

    “Observe calmly; secure our position; cope with affairs calmly; hide our capacities and bide our time; be good at maintaining a low profile; and never claim leadership.”

    • In the 1980s, Deng Xiaoping took up the reins.
    • Deng supplemented Zhou’s strategy with a “24-Character Strategy” of his own(the above quote).

    Character of Chinese diplomacy in Deng Xiaoping’s time

    • “24-Character Strategy” became the ‘mantra’ of Chinese diplomacy.
    • Chinese diplomats measured their words and kept their dignity.
    • They projected power but rarely used more words than needed.
    • They were masters of their brief because Zhou had taught them that the real advantage in negotiations was to know more than the other side.
    • They flattered acquaintances, calling them “old friends”.
    • They built relationships by making it a point to engage the less friendly interlocutors with greater courtesies than friends.
    • Behind closed doors, they were tireless in reducing opposition through negotiation.
    • And skillfully in putting the onus of responsibility for failure on the other party.
    • And occasionally, they would hold out a veiled threat with a look of concern rather like an uncle anxious to save you from embarrassment.
    • But they rarely offended.

    Tumultuous period of 1980s and 1990s and entry into WTO

    • The 1980s and 1990s were the peak for Chinese diplomacy.
    • The U.S. President George Bush and Russian leader Mikhail Gorbachev visited China.
    • They normalised relations, settled borders and won hearts and minds through general financial help.
    • So effective was Chinese diplomacy that the Americans even broke their own sanctions imposed after the 1989 ‘Tiananmen Incident’, within a matter of four weeks.
    • A decade later, the U.S. and the European Union bought into Chinese assurances that it would soon transition to a market economy.
    • And helped steer China into the World Trade Organization.

    After Deng Xiaoping: Arrogance and threats in diplomacy

    • Deng died in 1997. China prospered just as Deng had imagined.
    • It began to occupy centre stage in world diplomacy, but the basics of Chines diplomacy started changing
    • A new generation of diplomats, with knowledge of the English language and a careerist mindset, has started to destroy the foundations set down by Zhou and Deng.
    • Arrogance has replaced humility.
    • Persuasion is quickly abandoned in favour of the stick when countries take actions contrary to Chinese wishes.
    • The Chinese pursue unilateralism instead of compromise in the South China Sea.
    • In place of ‘united front’ tactics, they are bent on creating irritations simultaneously with multiple China neighbouring countries.
    • Avenging the ‘Century of Humiliation’ that endured in the hands of western imperial powers from roughly 1839-1840 to 1949 is on their mind now.
    • To avenge that they adopt a one-size-fits-all approach.
    • But they forget that much of the world has done nothing to China and, indeed, shares a similar historical experience.
    • Statements of fact or reasoned opinion are seen by them as insult or humiliation.
    • Foreign governments are educated about their responsibilities in managing the media and the narrative, even as the Chinese manipulate the same media to serve their purposes.
    • They expect to receive gratitude for everything they do, including handling COVID-19, as if it was only done with the foreigner in mind.
    • The veneer of humility has thinned.
    • The reserves of goodwill are fast depleting. The ship seems to be adrift at sea.

    Questions related to China has been a recurrent theme in the UPSC papers. Consider the question asked in 2017  “China is using its economic relations and positive trade surplus as a tool to develop potential military power status in Asia. In light of this statement discuss its impact on India and her neighbours.”

    Conclusion

    In the post-pandemic world, India and the rest of the world will have to reckon the role played by China in the pandemic. In such a changing scenario India will do well to take note of the changing trends of Chinese diplomacy.

  • Terrorism and its ideologies

    Pakistan is a unique country in the sense that it is both a victim and the perpetrator of terrorism. This article explains the situations which made Pakistan home to the terrorism. So, why some terrorist organisations turned against Pakistan? What are the ideologies followed by various terrorist organisation and how it makes a difference in their functioning? Read to know…

    Terrorism paradox of Pakistan: Both Victim and perpetrator

    • This Terrorism paradox can be traced to the deliberate policy of the Pakistani state to create and foster terrorist groups in order to engage in low-intensity warfare with its neighbours.
    • Pakistan first operationalised this strategy in regard to Afghanistan in 1973.
    • And intensified it with the cooperation of the U.S. and Saudi Arabia after the Marxist coup of 1978 after which USSR entered Afghanistan.

    Soviet withdrawal and rise in insurgency in Kashmir

    • The Soviet withdrawal in 1989 left the Pakistani military with a large surplus of Islamist fighters that it had trained and armed.
    • Islamabad decided to use this “asset” to intensify the insurgency in the Kashmir Valley.

    Radicalisation of Pakistani population

    • The decade-long Afghan “jihad” in Afghanistan had also radicalised a substantial segment of the Pakistani population.
    • Radicalisation was intense in the North-West Frontier Province and Punjab.
    • Sectarian divisions were also on the rise not only between Sunnis and Shias but also among various Sunni sects.
    • The division was intense between two Sunni sects-the puritanical Deobandis and the more syncretic and Sufi-oriented Barelvis.
    • In the process, a number of homegrown terrorist groups emerged that the Pakistan Army co-opted for its use in Kashmir and the rest of India.
    • But, it soon became clear that Pakistan had created a set of Frankenstein’s monsters some of whom turned against their creator.
    • The Musharraf government, under American pressure, decided to collaborate with the latter in the overthrow of the Taliban regime in Afghanistan.
    • This resulted in some of the terrorist organisation turning against Pakistan.

    Monsters who don’t spare even its creator

    • The Tehreek-e-Taliban Pakistan (TTP), which has ideological affinity with the Afghan Taliban.
    • The TTP and its affiliates have fought pitched battles with the Pakistan Army in the Federally-Administered Tribal Areas (FATA) and parts of the NWFP.
    • Also, the Jaish-e-Mohammad (JeM) has not hesitated to launch terrorist attacks on targets within Pakistan as well, especially against the Shias and Sufi shrines.

    Did all terrorist organisation turn against Pakistan?

    • No!
    • Consider the case of ‘loyalist’ LeT.
    • Lashkar-e-Taiba (LeT), is a classic example of a “loyalist” terrorist organisation that has played by the rules set by the Pakistani military.
    • It only launches attacks on targets outside Pakistan, primarily in India.
    • As the evidence in the case of the Mumbai carnage of 2008 clearly indicates LeT operations are coordinated with the Inter-Services Intelligence (ISI).
    • ISI provides it with intelligence and logistical support in addition to identifying specific targets.
    • This is why the LeT and its front organisations have continued to receive the military’s patronage and unstinting support.
    • Consequently, its leader, Hafiz Saeed, was until recently provided protection by the Pakistani state.

    Ideological differences

    • Both the LeT and the Jaish-e-Mohammed (JeM) have been engaged in attacks on Indian targets identified by Pakistan’s ISI.
    • The difference between LeT and JeM lies in the fact that while the LeT is more pragmatic and less ideological.
    • The JeM is highly ideological and sectarian.
    • JeM draws its ideological inspiration from a very extreme form of Deobandi puritanism.
    • That extreme form considers all those who do not believe in its philosophy beyond the pale of Islam.
    • For many JeM diehards, these include not only Shias and Barelvis but also the Pakistani state and the Pakistani military.
    • LeT on the other hand does not consider Muslims of different theological orientations as non-believers and therefore legitimate targets of attack.
    • This relatively “liberal” interpretation is related to the fact that LeT draws its ideological inspiration from the sect called the Ahl-e-Hadis, which composes only a small proportion of Pakistan’s Muslim population and cannot afford to engage in sectarian conflict.
    • Moreover, it draws its membership from different Muslim sects including the Sufi-oriented Barelvis and the puritanical Deobandis.
    • Both these factors drive LeT toward greater tolerance in sectarian terms and to eschew intra-Islamic theological battles.
    • Its primary goals are political; above all, driving India out of Kashmir.
    • This jells well with the objectives of the Pakistani military and makes LeT and Hafiz Saeed, favourites of the Pakistani establishment.

    Consider the question asked by UPSC in 2017-“The scourge of terrorism is a grave challenge to national security. What solution do you suggest to curb this growing menace? What are the major sources of terrorist funding?

    Conclusion

    The fact that using terrorist outfits for state objectives is a highly risky business whose blowback cannot be predicted and can have very negative consequences for the stability of the state itself.