💥Join UPSC 2027,2028 Mentorship (July Batch) + XFactor Notes & Microthemes PDF

Distribution: weekly

  • [Burning Issue] National Population Register

    Context

    • The Union Cabinet has approved a proposal to conduct Census 2021 and update the National Population Register (NPR).
    • While the Census will be conducted in 2021, the NPR update will take place from April to September 2020 in all the States/UTs except Assam.

    Focus shifts of Protestors: CAA TO NPR

    • While the row over the CAA brought thousands of people to the streets — with protests turning violent at many places – a fresh controversy erupted over the updating of the National Population Register (NPR).
    • The NPR is a register of residents of India where the enumerator collects demographic and biometric data of individuals living at the place of enumeration for six months or more.
    • Now, this turn of events where non-NDA ruled states started to halt an ongoing enumeration of residents (NPR) process left many confused, with the time to begin counting for the Census approaching fast.
    • Is the recently passed Citizenship Amendment Act related to NPR? The answer is both yes and no. There is no direct link.
    • It depends on how the government decides to use data collected for NPR.

    What is the National Population Register (NPR)?

    • The NPR is a register of usual residents of the country. It is mandatory for every usual resident of India to register in the NPR.
    • It includes both Indian citizens as well as a foreign citizen.
    • The objective of the NPR is to create a comprehensive identity database of every usual resident in the country.
    • The first NPR was prepared in 2010 and updating this data was done during 2015 by conducting door to door survey.
    • The next update of the NPR will take place next year from April to September with the Houselisting phase of the Census 2021.
    • It is being prepared at the local (Village/sub-Town), sub-District, District, State and National level under provisions of the Citizenship Act 1955 and the Citizenship (Registration of Citizens and Issue of National Identity Cards) Rules, 2003.

    Who is the usual resident?

    • According to the Citizenship (Registration of Citizens and Issue of National Identity Cards) Rules, 2003, a usual resident is a person who has resided in a local area for the past 6 months or more or a person who intends to reside in that area for the next 6 months or more.

    The Census of India

    • The Census is the enumeration of the population of the country.
    • It is being conducted at an interval of 10 years.
    • The Census 2021 will be 16th census in the country since the first census happened in 1872. However, it will be 8th census after the Independence.
    • For the first time, the Census 2021 will use the Mobile App for data collection. It will also provide a facility to the public for self-enumeration.

    What is the whole issue?

    Issues with the states

    • Citizenship, aliens and naturalization are subject matters listed in List 1 of the Seventh Schedule that fall exclusively under the domain of Parliament.
    • Legally, the states have no say in implementing or ruling out NPR.
    • However, given that the manpower is drawn from the states, the defiance could potentially result in a showdown.

    Issues with NPR

    • Census is an exercise carried out under the Census Act, 1948. Census data is based on self-declaration made by the persons without verification.
    • NPR is carried out as per the 2003 Citizenship Rules. Under these Rules, it is compulsory for a person to share the demographic data for preparation of NPR.
    • Therefore, these Rules have a coercive element, as they penalize non-cooperating persons with fines and penalties.
    • Failure to comply with the NPR data collection can expose one to penal consequences under Rule 17.
    • It may be noted that both these processes are carried under the supervision of a single office: the Office of Registrar General of India and Census Commissioner.

    Privacy Concern

    • Officials insist that NPR information is private and confidential, meaning it will not be shared with third parties. 
    • There is no clarity on the mechanism for protection of the vast amount of data that will be collected through NPR.

    Census vs. NPR

    • The census is decadal headcount in India. It involves a detailed questionnaire aimed at gathering general data about the population of India.
    • The NPR process collects demographic and biometric particulars of individuals.
    • Both processes involve door-to-door enumeration but NPR differs from the Census in the sense that its objective is to have a comprehensive identity database of those residing in India.
    • The Census does not identify individuals.
    • However, in Census 2021, this distinction may no longer exist as the government is said to be planning to conduct it through a mobile phone application.
    • Moreover, Census data are kept and maintained centrally under the Registrar General of India.
    • But once the NPR data are recorded and ready, these details would be kept and maintained in a population register at levels of village or ward, tehsil or taluk (sub-district), district and state.
    • Together, they will constitute the National Population Register with all data at the central level.

    The link between NPR and NRC

    • The Citizenship Act empowers the government to compulsorily register every citizen and maintain a National Register of Indian Citizens.
    • A nationwide NRC — if undertaken — would flow out of NPR.
    • This does not necessarily mean that an NRC must follow NPR — no such register was compiled after the previous NPR in 2010.
    • After a list of residents is created, a nationwide NRC — if it happens — could go about verifying the citizens from that list.

    What de-links NPR and NRC?

    • The NPR is different from the NRC which excludes the foreign citizens.
    • According to the Citizenship Rules 2003, a Population Register is ‘the register containing details of persons usually residing in a village or rural area or town or ward or demarcated area within a ward in a town or urban area.
    • Whereas the NRC is a register containing details of Indian Citizens living in India and outside India.

    Advantages of NPR

    • NPR gives a comprehensive identity database of its residents with relevant demographic details. It will help the government formulate its policies better and also aid national security.
    • It will ease the life of those residing in India by cutting red tape. Not only will it help target government beneficiaries in a better way, but also further cut down paperwork and red tape in a similar manner that Aadhaar has done.
    • For instance, it is common to find a different date of birth of a person on different government documents. NPR will help eliminate that.
    • With NPR data, residents will not have to furnish various proofs of age, address and other details in official work.
    • It would also eliminate duplication in voter lists, the government insists.

    Where Aadhaar does comes to the picture?

    • There is a little back story about NPR and Aadhaar. The two were considered rival projects under the UPA government.
    • When NPR process began in the government, P Chidambaram was the Union home minister, who pushed the population register project.
    • Both the NPR and Aadhaar projects were concurrently underway collecting demographic and biometric data.
    • Initially, both had better and targeted delivery of benefits and services to people as their objectives. The works of the UIDAI and the home ministry were viewed as duplication and wastage of resources.
    • The conflict, however, ended in a compromise between the home ministry and the UIDAI where it was decided that NPR and Aadhaar databases will be used for different purposes.
    • Aadhaar will deliver welfare services and NPR will be used for other purposes of governance.
    • It was also decided that those already enrolled for Aadhaar need not give their biometric details during NPR exercise.
    • The NPR data were to be matched with Aadhaar data for de-duplication. But the final formula gave NPR an upper hand.
    • It was agreed that in case of discrepancy between Aadhaar and NPR data, NPR would prevail.
    • Simply put, NPR conducted in accordance with the Citizenship Amendment Act 2003 will form the key data set for both Aadhaar and NRC.

     

     



    References

    https://www.civilsdaily.com/news/national-population-register-npr/

    https://www.livelaw.in/top-stories/what-is-the-caa-npr-nrc-linkexplainer-151105

    https://www.indiatoday.in/news-analysis/story/caa-npr-nrc-confusion-connection-explained-india-1631534-2019-12-26

     

  • [Burning Issue] WhatsApp Snooping

     



    Context

    • Possibly one of the biggest stories in that broke in cyberspace recently has been WhatsApp’s reports that 1,400 of its users were hacked by Pegasus, a spyware tool from Israeli firm NSO Group.
    • A significant number of these Indian users include journalists, academics, human rights and Dalit activists.
    • Further, the timing of such surveillance — late April to mid-May — rakes up another set of worries about the motive behind the hack.

     

    Pegasus

    • All spyware do what the name suggests — they spy on people through their phones.
    • Pegasus works by sending an exploit link, and if the target user clicks on the link, the malware or the code that allows the surveillance is installed on the user’s phone.
    • A presumably newer version of the malware does not even require a target user to click a link.
    • Once Pegasus is installed, the attacker has complete access to the target user’s phone.
    • The first reports on Pegasus’s spyware operations emerged in 2016, when Ahmed Mansoor, a human rights activist in the UAE, was targeted with an SMS link on his iPhone 6.

    Method of working

    • A Pegasus operator must convince a target to click on a specially crafted ‘exploit link’ which allows the operator to penetrate security features on the phone.
    • This automatically installs Pegasus without the user’s knowledge or permission.
    • Once the phone is exploited and Pegasus installed, it begins contacting the operator’s command and control and send back the target’s private data, including passwords, contact lists, events, text messages, and live voice calls from popular mobile messaging apps.
    • The operator can even turn on the phone’s camera and microphone to capture activity in the phone’s vicinity.

     

    Why is Pegasus dangerous?

    • What makes Pegasus really dangerous is that it spares no aspect of a person’s identity. It makes older techniques of spying seem relatively harmless.
    • What can’t it do would be an easier question to answer. Once on a phone, the spyware has the run of the place.
    • It can intercept every call and SMS, read every email and monitor each messaging app.
    • Pegasus can also control the phone’s camera and microphone and has access to the device’s location data.
    • The app advertises that it can carry out “file retrieval”, which means it could access any document that a target might have stored on their phone.

     

    Concerns over Snooping

    The pertinent questions are, who is behind this surveillance and hacking incident; and has this intrusion of privacy reached a level that has not been fathomed by the legal and technical communities?

    Stretching this further, is this a vulnerability ignored by WhatsApp’s management?

    Perpetrators behind the attack

    • The other angle to this whole episode is the role of the perpetrators behind the hack.
    • With access to technology increasing, networks can be intruded from any part of the world provided the encryption can be broken.
    • The offering of products such as Pegasus and their misuse or proliferation has the same, if not more, ramifications as advanced nuclear technology falling into the wrong hands.
    • The role of non-state actors with support from rogue nations or even criminal syndicates is also not out of question.

    Security and privacy breach

    • Clearly, the potential revelations are worrying a large section of social media users about the confidentiality and integrity of the networks, which is the basis of trust for most users.
    • At the same time, the NSO Group’s claim about only working with specific security agencies across the world brings to the fore questions about the role of such agencies.

    Government under question

    • Some in India have been quick to jump the gun and blame the government and its ‘snooping’ networks.
    • But, that is definitely not proven to be the situation yet, and both the MeitY and Ministry of Home Affairs have clearly said they played no role.

     

    Snooping:  an offence in India

    • Any form of online interception, monitoring and decryption are well defined as per the provisions of the Information Technology Act 2008 (IT Act) and the concomitant rules.
    • These provisions clearly list the 10 agencies that can undertake such actions and the procedures for them, the competent authority who can order such an action being the Union Home Secretary.
    • Even such authorised surveillance actions have to be reviewed by a committee, headed by the Cabinet Secretary, which meets at least once in two months.
    • Likewise for States, the respective Home Secretary is the competent authority and the Chief Secretary heads the review committee.
    • No such authorizations have been given by any of the competent authorities for the monitoring of the affected individuals in India for the period in reference.

     

    Whom to blame, then?

    • This is a clear case of willful hacking whose proportions entail it to be seen as a cyber terrorism attempt; it calls for application of Section 66 (F) of the IT Act to deal with the perpetrators.
    • To date, there have been three denials, by the central government (the ministry of electronics and information technology, the ministry of home affairs, and CERT-IN, a technical body that probes cyber threats).
    • The issue has brought to the fore the fear around the possibility of how emerging network access technology could also beat secured encryption, which remains the fundamental basis of user trust and hitherto privacy.

     

    Clear implications

     

    No national security without individual privacy!

    We must all recognise that national security starts with securing the smartphones of every single Indian by embracing technologies such as encryption rather than deploying spyware. This is a core part of our fundamental right to privacy.

    • This intrusion by the spyware is not merely an infringement of the rights of the citizens of the country but also a worrying development for India’s national security apparatus.
    • The security of a device becomes one of the fundamental bedrocks of maintaining user trust as society becomes more and more digitized.
    • Such an approach belies appreciating the injury and threats to individuals and the country.
    • There is an urgent need to take up this issue seriously by constituting an independent high-level inquiry with credible members and experts that can restore confidence and conduct its proceedings transparently.

    Alleged perpetrator

    • The alleged spying on Opposition leaders and activists in India reminds one of the illegal espionage in the Watergate scandal.
    • Given that NSO claims it only sells to governments and the fact that it is mostly critics of the ruling dispensation who have been targeted, some people have alleged that it is the Indian government that was behind the snooping.
    • In response, the Union minister of IT Minister alleged that the former Indian government had spied on the then chief of the Indian Army as well as the Union Finance Minister.

    A note of caution

    • Social media providers must stop chest-thumping, start investing in attribution solutions and be honest with users about the risks involved in their products.
    • Such software must be strictly controlled and legal provisions must be inked, so that providers of such technologies are deterred.
    • Needless to say, a relook at laws, technology and ethics is needed, preferably sooner than later.
    • In the digital age, companies will emerge and operate in the grey areas of the intersection between technology and security to make a profit.
    • But national security must not be used as a shield by either governments or private players to justify the violation of fundamental rights.

     

    Way Forward

     

    • It is incumbent on Parliament, the judiciary and Facebook, the company that owns WhatsApp, to plug the breach of privacy and nail those responsible for it.
    • Indian government must leverage its relationship with Israel to hold NSO to account.
    • Since this attack involves users from a quite a few countries, there is a greater need for global cooperation to a concerted and coordinated investigation.
    • The government has made it clear that it holds a sovereign right over the data of its citizens. The idea of data sovereignty must include a citizen’s right to privacy.
    • It must punish anyone found guilty of unlawfully violating the privacy of Indian citizens.

     

     



    References:

    https://www.civilsdaily.com/news/spyware-pegasus/

    https://scroll.in/article/942300/explainer-how-whatsapp-was-hacked-to-spy-on-indian-dissidents-and-who-did-it

    https://www.telegraphindia.com/opinion/whatsapp-snooping-is-a-grievous-offence/cid/1719010

    https://www.hindustantimes.com/analysis/why-there-cannot-be-any-national-security-without-individual-privacy-analysis/story-JvDaOJLW85gXR9cILtwq7M.html

  • [Burning Issue] India’s exit from RCEP


    Context

    • India decided to drop out of the RCEP agreement, citing its negative effects on farmers, MSMEs and dairy sector.

     

    What is RCEP?

     

    Regional Comprehensive Economic Partnership (RCEP) is a proposed free trade agreement (FTA) between –

    • The 10 members of ASEAN
    • Additional members of ASEAN +3 = China, Japan, South Korea
    • Members with which ASEAN countries have FTA = India, Australia, New Zealand

    RCEP includes more than 3 billion people, has a combined GDP of about $17 trillion, and accounts for about 40 per cent of world trade. By any means, this is a huge community in making.

     

    How significance was RCEP for India?

    • From India’s point of view, the RCEP presented a decisive platform which could influence its strategic and economic status in the Asia-Pacific region and bring to fruition its “Act East Policy.”
    • It is expected to be an ambitious agreement bringing the 5 biggest economies of the region – Australia, China, India, Japan and South Korea – into a regional trading arrangement.

    There are three immediate benefits that its trade policymakers should note-

    #1. The RCEP agreement would complement India’s existing free trade agreements with the ASEAN and some of its member countries.

    This consolidation can address challenges emanating from implementation concerns vis-à-vis overlapping agreements, which is creating a “noodle bowl” situation obstructing effective utilization of these FTAs.

    It will also help achieve its goal of greater economic integration with countries East and South East of India through better access to a vast regional market ranging from Japan to Australia.

    NOTE:            India is not a party to two important regional economic blocs: the Asia-Pacific Economic Cooperation and the Trans-Pacific Partnership. The RCEP would enable India to strengthen its trade ties with Australia, China, Japan and South Korea, and should reduce the potential negative impacts of TPP and TTIP on the Indian economy.

    #2. Getting India closer to ASEAN

    • Clubbing with the ASEAN has been a principal policy priority for both China and India.
    • At present, while China has clubbed with the ASEAN+1, ASEAN+3 and ASEAN+6,
    • India is clubbed only under the ASEAN+6 framework

    #3. India can leverage its capabilities in IT, Healthcare, Education and services

    • The RCEP will create opportunities for Indian companies to access new markets
    • India is well placed to contribute to other countries in RCEP through its expertise in services

    #4. Balancing with China

    • India’s allies in Southeast Asia, as well as Australia, want India to join it to balance China.
    • On the other hand, many in India feel that RCEP will aggravate India’s burgeoning trade deficit with China.
    • The Indian industry feels that China does not provide a level playing field for items that they could export, especially in fields like pharma, IT, films, indigenous medicines, wellness and yoga.
    • Some of these are founded on opacity that surrounds the Chinese government’s decision making.

     

    What compelled India to opt-out?

    Chinese imports

    • Key issues that have prevented India from coming on board include “inadequate” protection against surges in imports.
    • This is a major concern for India, as its industry has voiced fears that cheaper products from China would “flood” the market.
    • India had been seeking an auto-trigger mechanism that would allow it to raise tariffs on products in instances where imports cross a certain threshold.
    • India has also not received any credible assurances on its demand for more market access, and its concerns over non-tariff barriers.

    Rules of origin criteria

    • Its concerns on a “possible circumvention” of rules of origin — the criteria used to determine the national source of a product — were also not addressed.
    • Current provisions in the deal reportedly do not prevent countries from routing, through other countries, products on which India would maintain higher tariffs.
    • This is anticipated to allow countries like China to pump in more products.

    Trade deficit

    • Despite India already having separate, bilateral FTAs with most RCEP nations, it has recorded trade deficits with these countries.
    • China India has an over $50 billion trade deficit is one of the major reasons for New Delhi not joining in at this stage.
    • During negotiations, it was also not able to get a favourable outcome on its demands on the base year that would be used to reduce the tariffs on the products that would be traded as part of the pact.

    Protecting domestic industries

    • Throughout the RCEP negotiations, several sections of the Indian industry have raised concerns over India signing the deal.
    • They have argued that some domestic sectors may take a hit due to cheaper alternatives from other participant countries.
    • For instance, the dairy industry was expected to face stiff competition from Australia and New Zealand.
    • Similarly, steel and textiles sectors have also demanded protection.

     

    RCEP minus India

    It comprises half of the world population and accounts for nearly 40% of the global commerce and 35% of the GDP. RCEP would have become the world’s largest FTA after finalisation, with India being the third-biggest economy in it. Without India, the RCEP does not look as attractive as it had seemed during negotiations.

    What it means?

    • Divided ASEAN – ASEAN has been keen on a diversified portfolio so that member states can deal with major powers and maintain their strategic autonomy. ASEAN member states have tried to keep the U.S. engaged in the region.
    • Indo-Pacific – Both geopolitically and geo-economically, China is set to dominate the Indo-Pacific. India’s entire Indo-Pacific strategy might be open to question if steps are not taken to restore India’s profile in the region.
    • Rejected China’s dominance – India signalled that, despite the costs, China’s rise has to be tackled both politically and economically. Japan is now suggesting that it would work towards a deal that includes India.

    Implications for India

     

    Inherent lack of confidence?

    • Our government’s decision to stay out of the RCEP has drawn near-unanimous support from political parties and organisations representing farmers, traders and industries.
    • It is clear recognition that Indian producers will find it difficult to cope with increased import, especially of dairy products from Australia and New Zealand and manufactured goods from China.

    Isolation from the global value chain

    • India’s absence in integrating with global value chains will impact India’s internal and external ambitions.
    • India’s own evidence shows that jobs linked to global value chains earn one-third more than those jobs focused on the domestic market.
    • The inability to accede to the RCEP and ensure India’s integration into these emerging global value chains means India will lose out on a key opportunity to create such high-quality, high-paying jobs.
    • Moreover, India’s absence in both of Asia’s two key economic architectures will take away from India’s goals as a regional and Indo-Pacific power, as well as a prospective global power.

    Unclear on ‘national interest’

    • India’s ambitions to become a global hub for manufacturing means that it is the country’s long-term national interest to be integrated into global value chains.
    • Such growth matters for two reasons: within India, it will create millions of jobs and secure a stable future for India’s young population, and externally, to facilitate India’s rise as one of the poles in a multipolar 21st century.
    • India cannot decide its future by remaining isolated and sitting alone in a corner.

    The Indian protectionism

    • It has been argued that the Indian industry has hidden behind a wall of protectionism for far too long, and must open itself to global competition.
    • There is a tendency in Indian industry to seek protection, whenever any steps towards globalization are taken.
    • However, it is an acknowledged fact that globalization did benefit the Indian economy, it brought in newer technology and made Indian industry far more competitive.
    • RCEP does provide Indian industry a huge market to grow and expand, provided it transforms and the government frees it from bureaucratic controls that have been stifling growth.

    Conclusion

    • It does not seem a good idea for India to be out of the agreement from its inception, only to join it later.
    • Economic isolation is not an option for India. However, there are reports that India will move towards bilateral trade pacts.
    • Given India’s own ambitions to generate growth and jobs within India, and becoming a key player and rule-maker on the world stage, India’s decision to withdraw from the RCEP is not ideal.
    • India must now translate this withdrawal into a commitment for domestic reforms to prepare itself for the next opportunity to integrate itself into the global value chains and unleash Indian manufacturing.
    • However, having no deal is far more prudent than signing up for a bad one.
    • It is easy to succumb to the rapturous sound of global applause, but far tougher to make a tactical retreat in the larger national interest.

     

     



    References

    https://www.civilsdaily.com/what-is-the-significance-of-rcep-for-india/

    https://www.civilsdaily.com/news/explained-rcep-trade-negotiations/

    https://economictimes.indiatimes.com/markets/stocks/news/how-to-craft-an-rcep-to-indias-advantage/articleshow/72016572.cms

  • [Burning Issue] Death of Baghdadi and Its Global Implications

     


    Context

    • The death of ISIS leader Abu Bakr al-Baghdadi last week ended one of the most intense and aggressive manhunts in the world. He blew himself in a dead-end tunnel.
    • As a “leader on the run” for more than five years, Baghdadi was more of a symbol for a Caliphate.
    • It will be an overstatement to claim that his killing put an end to the ISIS network.

     

    ISIS: A quick recap

    • The Islamic State of Iraq and Syria (ISIS) officially known as the Islamic State (IS) is a terrorist group and a formerly unrecognized proto-state that follows a fundamentalist Salafi jihadist doctrine.
    • Within 18 months of the withdrawal of US troops from Iraq in 2011, the AL Qaeda in Iraq captured large territories across Iraq and Syria and morphed itself into ISIS.
    • The group has been designated a terrorist organization by the United Nations as well as by many international organizations and individual countries.

     

    Modus operandi of IS

    • Riding high on extremists and terrorists from across the globe, ISIS announced “decentralized” wilayas and asked their supporters to join them if they could not travel to the Caliphate.
    • The decentralized wilayas in West Africa, the Philippines, Egypt, Yemen, Afghanistan, Indonesia, and Libya have become more active and are showcasing successes on social media daily.
    • IS started systematically encouraging lone actor attacks in the West in 2016.

     

    The most lethal weapon

    • The real threat that the IS, however, poses is that it is able to convince the Muslim extremist fringe that their time has come.
    • Radicalization, in any event, has less to do with numbers than with the intensity of beliefs. The struggle is not against presumed disparities or injustices meted out to Muslim minorities.
    • Rather, it reflects the quest for a new militant Islamist identity.
    • In addition to this, the IS introduced the concept of a new Caliphate — especially al-Baghdadi’s vision of a Caliphate based on Islamic history.
    • This further ignited the imagination of Muslim youth across the globe and became a powerful magnet to attract volunteers to their cause.

     

    Who was Abu Bakr al-Baghdadi?

    • The leader of the IS was often described as the most wanted individual in the world.
    • The US designated him a terrorist some eight years ago and declared a bounty of $10 million (more than Rs 70 crore) on his head.
    • Baghdadi, who was believed to have been born in Iraq perhaps in 1971, proclaimed himself Caliph of the Islamic State in 2013.
    • He made his first known public appearance the following year, delivering a Ramzan sermon at the Great Mosque of al-Nuri in Mosul in northern Iraq.
    • This was the place at which the IS declared itself to be a worldwide Caliphate with al-Baghdadi at its head.

     

    The rise

    • In early 2014, al-Baghdadi’s fighters had taken control over western Iraq, and over the next year and a half, the IS ran a sweeping campaign of terror and brutality across a vast patch of Iraq and Syria.
    • It went on terrifying the world with grisly videos of beheadings and shaking up governments everywhere.
    • By the end of 2015, it had control over an estimated 8-12 million people over which it imposed an unforgiving version of Sharia law, attracting jihadists from across the world, including a few from India.
    • The terrorist organization and empire that Baghdadi headed was estimated at the time to have been the size of Great Britain, with an annual budget of over a billion dollars and an army of more than 30,000 jihadists.

    Downfall

    • The ISIS started to weaken from 2016 onward as the international coalition, backed by regional allies including, most importantly, Syrian Kurdish peshmerga fighters, gained ground in Syria and Iraq.
    • As the formal structure of ISIS crumbled, thousands of its fighters went underground, even though local groups continued to carry out isolated terrorist incidents across the world in the name of ISIS and al-Baghdadi.

     

    Infamous terror activities

    • Among the biggest of ISIS attacks were carried out in Paris in November 2015, and in Sri Lanka in 2019.
    • Al-Baghdadi described the attacks in Sri Lanka on Easter as revenge for the defeat in Al-Baghuz Fawqani in Syria, which was taken from ISIS in late March.

     

    What does Baghdadi’s killing now mean?

    • Should Baghdadi’s elimination be confirmed, it would mark the bringing to justice of one of the biggest terrorist killers of modern times and the successful conclusion of a massive international manhunt.
    • It must be remembered that there have been multiple alerts about his death earlier.
    • In June 2017, Russia claimed he had been killed in an airstrike near Raqqa, Syria; two weeks later, the most reliable Syrian Observatory of Human Rights reported “confirmed information” that al-Baghdadi was dead.

     

    Did this put an end to ISIS?

    • Baghdadi’s death will not necessarily mark the end of ISIS itself, which though fragmented and no longer easily visible, is far from dead.
    • ISIS lives on and today it is much stronger than it was in 2011 before Baghdadi when American troops pulled out of Iraq and the group was considered defeated.
    • Besides its thousands of fighters in Iraq and Syria, ISIS has a Khorasan province and provinces in the Philippines and West Africa and it is strong and growing in Afghanistan.
    • These are groups that are robust on the ground and there is enough evidence to suggest that there is the connective tissue between the affiliates and ISIS’s core group in Iraq and Syria.

    Implications for India

     

    Rising influence in the vicinity

    • ISIS has attracted foreign fighters from South Asia, mainly Pakistanis, Afghans, Maldivians, and Bangladeshis.
    • The Easter attacks showed the potential of violence even by a small group of committed cadres with support of the ISIS network.
    • The NIA during its investigations has since come across links connecting IS units in Kerala and Tamil Nadu as well as in Sri Lanka.
    • In Bangladesh three years ago, ISIS did create a small but effective network with the active support of western nationals of Bangladeshi origin.

    Vulnerability at home

    • Less than 100-200 Indians so far are believed to have traveled to Syria and Iraq and Afghanistan to join ISIS.
    • This creates the potential for more recruitment as well as aiding attacks on Indian soil or interests.
    • A few weeks ago, ISIS propaganda has called for jihad pegged on sentiments around Kashmir and has specifically called for attacks on Indian interests in the Arabian Peninsula.

     

    Global implications

    • ISIS has suffered significant setbacks over the past two years, losing most of its territorial control, and has returned to its roots as an insurgent organization.
    • Given the recent successes in the fight against ISIS, many analysts and government officials are optimistic that Baghdadi’s death will result in substantial weakening and perhaps the demise of ISIS.
    • However, to effectively bring down a terrorist group through targeting its leader, it’s important to consider three factors: organizational structure, ideology, and popular support.
    • Baghdadi’s death will not hinder the operational capacity or bring about the collapse of ISIS. In fact, it could even be counterproductive to weakening ISIS.

    ISIS – An ideology not a personality cult

    • Advocates of this view argue that Baghdadi is irreplaceable, given his claim of lineage to the prophet Muhammad.
    • Despite this belief in Baghdadi’s authority and legitimacy as a leader of the self-proclaimed caliphate, however, ISIS is not a cult of personality.
    • Baghdadi was successful in institutionalizing essential organizational structures.
    • Looking at nearly 1,000 instances of leadership decapitation from 1970 to 2016 revealed that it is often ineffective against religious, separatist, Islamist and large organizations.

    ISIS is more organized

    • Bureaucratized terrorist organizations are diversified with a clear division of responsibilities and functions, standard operations procedures, and other characteristics that create redundancies to support their resilience.
    • In the case of ISIS, Baghdadi created complex bureaucratic structures to govern and manage its finances, social programs, infrastructure and military resources.
    • ISIS has also developed into a hybrid organizational structure.
    • That is, the group is hierarchical at the upper organizational levels, with the emir at the top; deputies who oversee financial, military, legal and social operations; and legislative councils including the Shura Council.
    • At the lower operational levels, the group is more decentralized, with networks including those in Iraq and Syria; affiliated groups in South Asia, the Arabia and Africa; and lone actors who span the globe.
    • Such hybrid structures are especially difficult to weaken through targeting efforts.

    The ideology

    • The leadership of Islamist, religious or separatist groups is not necessary for recruitment, inspiring attacks or ensuring that the group’s message stays relevant.
    • The ideology becomes self-sustaining, and the Islamic State’s use of propaganda and technology has been effective at broadening their base of support transnationally.
    • In August 2018, Baghdadi urged his followers to carry out lone-actor attacks in Western countries.

    New successor in queue

    • ISIS has a wide and deep pool of militants from which to recruit his successor and a bureaucracy that encourages specialization and training.
    • Less than a week after Baghdadi’s death, the organization announced a successor, Abu Ibrahim al-Hashimi al-Qurashi, as the new caliph.

    Popular support

    • It grants the basis for group legitimacy, which can increase an organization’s efficiency and resilience.
    • After an attack on a terrorist group’s leadership, popular support is essential to maintaining organizational strength and capacity.
    • The creation of the self-proclaimed ISIS caliphate broadened this base of support.

    Conclusion

    • The caliphate may be weakened after him, but Baghdadi created a highly resilient bureaucratic organizational structure capable of withstanding the loss of leaders.
    • Attacks on high-profile leaders are visible counterterrorism measures that can make a fearful U.S. audience feel secure in the belief that their government is successfully fighting the war on terrorism.
    • It is an alternative to such costly policies as large-scale military operations.
    • But in the case of ISIS, it’s an alternative that not only disregards critical aspects of the group’s resilience — it could even fuel a strengthened retaliation.

     

     



    References

    https://www.civilsdaily.com/news/op-ed-snap-taking-stock-of-islamic-state-2-0/

    https://www.thehindu.com/news/international/afghan-islamic-state-after-baghdadi/article29865207.ece

    https://www.washingtonpost.com/politics/2019/11/05/death-baghdadi-isnt-end-isis/

    https://indianexpress.com/article/explained/after-death-of-al-baghdadi-who-is-the-worlds-most-wanted-criminal-6104708/

    https://indianexpress.com/article/explained/explained-abu-bakr-al-baghdadi-islamic-state-us-raids-syria-6090189/

  • [Burning Issue] Naga Peace Talks


    Context

    • The deadline set by the Centre for wrapping up the Naga peace talks, October 31 has ended up.
    • While the Centre’s interlocutor and now Nagaland’s Governor, R N Ravi, has stressed that some key issues remain unresolved with the National Socialist Council of Nagalim (Isak-Muivah), or NSCN(I-M).

     

    Rise of Naga nationalism

    • The British had annexed Assam in 1826, in which they subsequently created the Naga Hills district and went on to extend its boundaries.
    • The assertion of Naga nationalism, which began during British rule, has continued after Independence, and even after Nagaland became a state.
    • Along the way, the unresolved issues gave rise to decades of insurgency that claimed thousands of lives, including civilians.

     

    The Naga assertion through History

    • The earliest sign of Naga resistance dates back to 1918, with the formation of the Naga Club.
    • In 1929, the Club famously told the Simon Commission “to leave us alone to determine for ourselves as in ancient times”.
    • In a memorandum to the Simon Commission in 1929, representatives of Naga tribes demanded that Nagas be left free after Independence and not be included in the Indian Union.
    • Ahead of Independence, a nine-point agreement was signed between the Government of India and the Naga National Council.
    • This included an experimental coexistence with India for 10 years to be reviewed at the end of that period.
    • While the Nagas saw this provision as temporary, with a right to self-determination after 10 years, Naga historians say the Indian government has interpreted the “trial period’’ as accession to the Indian Union.
    • In 1946, A Z Phizo formed the Naga National Council (NNC), declared Naga independence on August 14, 1947, and then, in 1951, claimed to have conducted a referendum.
    • The referendum got an overwhelming majority in support of an independent Naga state.
    • By the early 1950s, the NNC had taken up arms and gone underground.
    • The NNC split in 1975, the breakaway group being the NSCN, which split further in later years, most prominently into the NSCN(I-M) and NSCN (Khaplang) in 1988.

     

    What are the Naga peace talks?

    • The talks seek to settle disputes that date back to colonial rule.
    • The Nagas are not a single tribe, but an ethnic community that comprises several tribes who live in the state of Nagaland and its neighborhood
    • One key demand of Naga groups has been a Greater Nagalim that would cover not only the state of Nagaland but parts of neighboring states, and even of Myanmar.

     

    And how have the peace talks played out in recent years?

    Before the ongoing talks, which followed a framework agreement in 2015, there were two other agreements between Naga groups and the Centre. 1975:

    • A peace accord was signed in Shillong in which the NNC leadership agreed to give up arms.
    • Several NNC leaders, including Isak Chishi Swu, Thuingaleng Muivah and S S Khaplang refused to accept the agreement and broke away to form the NSCN.
    • In 1988 came another split, with Khaplang breaking away to form the NSCN(K) while Isak and Muivah headed the NSCN(I-M).

    1997:

    • The NSCN (I-M ) signed a ceasefire agreement with the government in 1997, preceded by rounds of talks since 1995.
    • The key agreement was that there would be no counter-insurgency offensive against the NSCN(I-M), who in turn would not attack Indian forces.
    • The NSCN (I-M) had then announced to “every citizen of Nagalim wherever they may be”, that a ceasefire agreement was entered into between India and the outfit to bring about a lasting political solution.

    2015:

    • In August that year, the Centre signed a framework agreement with the NSCN(I-M).
    • PM Modi described it as a “historic agreement” towards settling the “oldest insurgency” in India. This set the stage for the ongoing peace talks.
    • In 2017, six other Naga armed outfits under the banner of the Naga National Political Groups (NNPGs) joined the talks.
    • Today, Muivah remains the senior-most Naga rebel leader. Isak died in 2016. In the NSCN(-K), its leader Khaplang died in 2018.

     

    What was in the framework agreement?

    • The government has not yet spelled out the details in public.
    • Following the agreement, the government had said in a press statement: “The Government of India recognized the unique history, culture, and position of the Nagas and their sentiments and aspirations.
    • The NSCN understood and appreciated the Indian political system and governance.
    • On the other hand, the NSCN(I-M) issued a statement earlier this year which said that Nagaland State does and will not represent the national decision of the Naga people.
    • The statement was in opposition to the proposal for a Register of Indigenous Inhabitants of Nagaland (RIIN) in the state of Nagaland.

     

    Where does the territorial demand currently stand?

    • The accord being finalized “does not change the boundary of states; it provides autonomous Naga territorial councils for Arunachal and Manipur; a common cultural body for Nagas across states.
    • It provides for specific institutions for the state’s development, integration and rehabilitation of non-state Naga militia and the removal of the Armed Forces Special Powers Act.
    • The map of Greater Nagalim in the NSCN(IM) vision, on the other hand, covers a 1,20,000 sq km sprawl across the Northeast and Myanmar — the area of Nagaland state itself is only 16,527 sq km, a fraction of this vision.
    • Amid the anxiety this has caused among citizens in neighboring states, state governments have assured them that their respective states’ territorial integrity would not be compromised.

     

    What are the other issues?

    • The government and the NSCN(I-M) have failed to agree on issues relating to a separate Naga flag and a constitution.
    • In its latest statement, the NSCN(I-M) has said it will not budge from the demand for the flag and the constitution — and that it is looking for a lasting solution.
    • However, the NSCN(I-M) has adopted a procrastinating attitude to delay the settlement raising the contentious symbolic issues of separate Naga national flag and constitution.

    I. Independence celebration

    • The tallest leader of the Naga struggle, Dr A Z Phizo, met M K Gandhi in Delhi on July 19, 1947.
    • According to Naga historians, Gandhi agreed that the Nagas would celebrate their independence a day ahead of India, on August 14, 1947.
    • To this day, Nagas across Nagaland, Manipur, Assam and Arunachal Pradesh celebrate August 14 as Independence Day.

    II. The Naga flag

    • In the Naga narrative, passed down generations by word of mouth, the Naga flag was not designed by a mortal but is of divine origin.
    • As Naga groups battled the Indian armed forces, the legend goes, Phizo and his closest colleagues had a vision — a rainbow, in a startlingly blue sky that had appeared after a storm.
    • A woman of the Rengma tribe, one of the tribes under the Naga umbrella, was commissioned to weave the flag.
    • It was hoisted for the first time in Parashen in Rengma on March 22, 1956.
    • The flag has a blue background, representing the sky. A red, yellow and green rainbow arches across the centre.
    • The Star of Bethlehem adorns the top left corner of the flag; Nagas are predominantly Christian.

     

    Present status

    • The flag remains a symbol of the Nagas’ struggle for over 60 years, of their religious faith, of the aspirations of the Naga people, and their identity.
    • It helps bind all the different Naga tribes together.
    • Outside Nagaland state, in particular, the flag continues to elucidate strong emotions of identity from Nagas.
    • Inside the state, common citizens are today divided on it. Certain sections believe that with secession from the Indian Union no longer possible, the Naga flag has lost some of its relevance.

     

    Status of secessionist tendencies

    • The moderates have supported a complete inclusion in the Indian state, for access to the latter’s development project, infrastructure, and its education and health facilities.
    • But a large section of the Nagas still holds dear the idea of the Naga identity and their tribal roots.

     

    Impacts of disagreement

    • The statement from the Governor’s office has given rise to speculation that the government is ready to sign a final peace agreement with other groups without the NSCN (I-M), the largest group.
    • Civil society groups in Nagaland are divided in their opinion.
    • Some have said the talks should be wrapped up with whatever is offered now and keep other issues open for later negotiations.
    • Others believe all issues should be settled and the NSCN (I-M) should be on board, even if it takes longer than the deadline.

     

    Conclusion

    • The Naga struggle claimed thousands of lives over decades and devastated countless homes, all over the idea of a sovereign Naga nation.
    • If the NSCN (I-M) accedes to economic and political packages alone, without a separate flag and constitution, it remains to be seen whether it will be seen as a solution, or as a defeat.

       



    References https://indianexpress.com/article/explained/explained-history-of-naga-flag-and-why-is-it-important-6098576/ https://indianexpress.com/article/explained/naga-talks-long-road-issues-6090652/

  • [Burning Issue] Annual Crime in India Report-2017


    Context

    • After a delay of two years, the annual Crime in India Report 2017 was published by the National Crime Records Bureau (NCRB).
    • The NCRB has introduced more than three dozen new categories and sub-categories of crimes under various heads.
    • The report omits data on mob lynchings, khap killings, murder by influential people and killings for religious reasons.
    • Data on farmer suicides after 2015 are yet to be published although, sources said, the fully compiled.

    About NCRB

    • The NCRB is an Indian government agency responsible for collecting and analyzing crime data as defined by the Indian Penal Code (IPC) and Special and Local Laws (SLL).
    • NCRB is headquartered in New Delhi and is part of the Ministry of Home Affairs (MHA).
    • NCRB was set-up in 1986 to function as a repository of information on crime and criminals so as to assist the investigators in linking crime to the perpetrators.
    • It was set up based on the recommendation of the Task-force 1985 and National Police Commission 1977.

    Highlights of the report

    At least four categories where significant diversification of data can be seen are crimes against women and children, atrocities against Dalits, cases of corruption, and time taken by police and courts to take cases to their conclusion.

    For the first time, the NCRB has introduced categories of cyber crimes against women and children.

    I. Crime against women

    • As per the report, 359849 cases of crime against women were reported in the country.
    • Uttar Pradesh topped the list with 56,011 cases followed by Maharashtra with 31,979 cases and West Bengal 30,002.
    • Majority of cases under crimes against women were registered under ‘Cruelty by Husband or his Relatives’ (27.9%) followed by ‘Assault on Women with Intent to Outrage her Modesty’ (21.7%), ‘Kidnapping & Abduction of Women’ (20.5%) and ‘Rape’ (7.0%),” the report said.
    • In the category of cyber crimes against women, the NCRB has recorded 4,242 offenses where women were either stalked, blackmailed or their morphed pictures were uploaded on the internet.

    II. Crime against children

    • A total of 95,893 cases of kidnapping and abduction were registered during 2017, showing an increase of 9.0% over 2016 (88,008 cases).
    • A total of 63,349 children (20,555 male, 42,691 female, and 103 transgender) were reported missing in 2017.
    • During the year 2017, a total of 70,440 children were recovered/traced, the report said.

    III. Riots

    • As per the report, 58,880 incidents of rioting were reported, of which the maximum incidents were reported from Bihar – 11,698, followed by Uttar Pradesh – 8,990 and Maharashtra – 7,743.
    • Of the total riots reported, communal and sectarian riots accounted for 723 and 183 incidents respectively.
    • There were 805 riots due to caste conflict and 1909 riots occurred due to political reasons, the report said.

    IV. Hate Crimes

    • The incidents registered under the Scheduled Caste Prevention of Atrocities Act saw an increase from 5,082 incidents reported in 2016 to 5,775 in 2017.
    • Incidents of crime related to Scheduled Tribes dipped from 844 in 2016 to 720 in 2017.

    V. Pendency of cases

    • While the NCRB has always collected data on pendency of cases with police and in courts, this was largely about the number of such cases. In the latest report, the NCRB has also recorded the period of pendency.
    • The data show police delayed charge sheets in 40% of cases. For IPC crimes, police are supposed to file a charge sheet within 90 days.
    • But data show that in certain cases such as rioting, which includes communal riots, police delayed filing of charge sheets in 60% of the cases.
    • It says there are more than 3 lakh cases pending investigations for more than one year. In courts as a whole, 2,71,779 cases were pending trial at the end of 2017.

    The New Categories

     

    I. Fake news

    • The NCRB for the first time collected data on the circulation of “false/fake news and rumors.”
    • Under the category, maximum incidents were reported from Madhya Pradesh (138), Uttar Pradesh (32) and Kerala (18).

    II. Anti-National activities

    • A new category of offenses committed by various categories of “Anti-National Elements” was included.
    • It showed that the maximum offenses were committed by Left Wing Extremist (LWE) operatives (652), followed by North-East insurgents (421) and Terrorists (Jihadi and other elements) (371).
    • The maximum number of killings was carried out by LWE insurgents (82).
    • As many as 72 of these killings took place in Chhattisgarh. This was followed by killings by terrorists (36) — 34 in J&K alone. North-East insurgents killed 10 people.

    No data on lynching

    • The data collected under the new sub-heads of death due to mob lynching, murder by influential people, killing ordered by khap panchayat and murder committed for religious reasons have not been published.
    • This data was ready and fully compiled and analyzed.
    • The decision to collect data on lynchings had been taken in the wake of a spate of lynching incidents across the country through 2015-16.
    • The idea was that such data collection would help the government formulate its policies better in tackling these crimes.
    • Lynchings happen for a variety of reasons which include suspicion of theft, child lifting, cattle smuggling or communal reasons.

    Why need such data?

    • NCRB’s annual crime reports give valuable information about the state of crime in the country.
    • They give a picture of the law and order situation by tracking the levels of various crimes across states and helping in the assessment of criminal investigation and justice delivery systems.

    Significance of the data

    • The crime records data provide key inputs for policy-making and are needed by the police, other departments and by civil society.
    • They are also social documents.
    • Governments should base their policies, decisions, and actions on such data.
    • It is vitally important that the data is correct and is not misrepresented, and the people have a right to know them.


    References

    https://indianexpress.com/article/explained/explained-whats-new-in-crime-report-and-the-data-6082764/

    https://www.civilsdaily.com/news/annual-crime-in-india-report-2017/

    https://www.deccanherald.com/opinion/second-edit/is-govt-hiding-ncrb-report-too-768943.html

  • [Burning Issue] Recent IPCC reports

    About IPCC

    • IPCC  is a scientific government body under the UN established in 1988 by two UN organizations, the WMO and the UNEP and later endorsed by the United Nations General Assembly.
    • The IPCC produces reports that support the United Nations Framework Convention on Climate Change, which is the main international treaty on climate change.
    • IPCC reports cover the scientific, technical and socio-economic information relevant to understanding the scientific basis of risk of human-induced climate change, its potential impacts and options for adaptation and mitigation.
    • Membership of the IPCC is open to all members of the WMO and the UNEP.

    Context

    • With a series of reports, the Intergovernmental Panel on Climate Change (IPCC) has raised several flags related to climate change and calls for urgent action.
    • This is the first time that the IPCC, whose job it is to assess already-published scientific literature to update our knowledge of climate change science, has published such reports.
    • It is part of a series of special reports that IPCC is doing in the run-up to the sixth edition of its main report, blandly called the Assessment Reports that are due around 2022.

    First report: The 1.5℃ Goal

    • Global warming is likely to reach 1.5°C between 2030 and 2052 if it continues to increase at the current rate, said the IPCC report published in Seoul in Oct 2018.

     

     Looking beyond 2°C goal

    • In 2010, international negotiators adopted a goal of limiting warming to 2°C since pre-industrial times. It’s called the 2° goal.
    • In 2015, when the nations of the world agreed to the Paris climate agreement, they set dual goals — 2°C and a more demanding target of 1.5°C from pre-industrial times.
    • The 1.5° was at the urging of vulnerable countries that called 2°C a death sentence.
    • The world has already warmed 1°C since pre-industrial times, so the talk is really about the difference between another half-degree C from now.
    • There is no definitive way to limit global temperature rise to 1.5 above pre-industrial levels.

    What happens at 2°C that does not happen at 1.5°C?

    1. The IPCC report deals with this question in detail. But a number of scientific papers in recent times have projected what could be expected in the 1.5°C scenario.
    2. The studies have looked at the physical impact on the land and ocean, as well as at the socio-economic impact, like health, malnutrition, food security, and employment. Some examples:
    • 5°C could prevent around 3.3 million cases of dengue every year in Latin America and the Caribbean alone
    • an additional 150 million people could be at risk from malaria if the temperature was allowed to increase beyond 2°C
    • the world could have 25 million fewer undernourished people by the end of the century, if the 1.5°C goal was achieved
    • 350 million additional people could be exposed to deadly heatwaves if the warming increased to 2°C as compared to 1.5°C.
    • 5°C could prevent 153 million premature deaths due to air pollution by 2100, as compared to the 2°C scenario.
    • the world could be 3% wealthier by 2100 in a 1.5°C scenario compared to a 2°C scenario.
    • 5°C strategy could create double the number of jobs in the energy sector by 2050.
    • compared to the 1.5°C scenario, extreme weather events such as heavy rainfall and heatwaves are likely to become more severe and frequent, and freshwater supply could fall sharply, in a 2°C world.

    How to reach the 1.5 ℃ target?

    • As of now, the world is striving to prevent the temperature rise beyond 2 degrees Celsius, in accordance with the stated objective of the Paris Agreement of 2015.
    • To meet that target, the aim is to reduce greenhouse gases by only 20 percent, from 2010 levels, by the year 2030 and achieve a net-zero emission level by the year 2075.
    • Net-zero is achieved when the total emissions are balanced by the amount of absorption or removal of carbon dioxide through natural sinks or technological interventions.

    Only Pathway: Carbon Dioxide Removal (CDR)

    • IPCC has suggested four strategies or pathways to accomplish the 1.5 °C
    • The pathways account separately for contributions of fossil fuel and industry, Bioenergy with Carbon Capture and Storage (BECCS), and removals in the Agriculture, Forestry and Other Land Use (AFOLU).

    P1: Lower energy demand

    • A scenario in which social, business and technological innovations result in lower energy demand up to 2050 while living standards rise, especially in the global South.
    • A down-sized energy system enables the rapid decarbonization of energy supply.
    • Afforestation is the only CDR option considered; neither fossil fuels with CCS nor BECCS are used.

    P2: Sustainable development planning

    • A scenario with a broad focus on sustainability including energy intensity, human development, economic convergence, and international cooperation is needed.
    • It focuses on shifts towards sustainable and healthy consumption patterns, low-carbon technology innovation, and well-managed land systems with limited societal acceptability for BECCS.

    P3: Emission reduction through technological development

    • A middle-of-the-road scenario in which societal as well as technological development follows historical patterns.
    • Emissions reductions are mainly achieved by changing the way in which energy and products are produced, and to a lesser degree by reductions in demand.

    P4: Deployment of BECCS

    • A resource and energy-intensive scenario in which economic growth has led to widespread adoption of greenhouse-gas intensive lifestyles, including high demand for transportation fuels and livestock products.
    • Emissions reductions are mainly achieved through technological means, making strong use of CDR through the deployment of BECCS.

     

    Second report: Focus on the land-climate link

    • Land use and changes in land use have always been an integral part of the conversation on climate change. That is because land acts as both the source as well as a sink of carbon.
    • Activities like agriculture and cattle rearing, for example, are a major source of methane and nitrous oxide, both of which are hundreds of times more dangerous than carbon dioxide as a greenhouse gas.
    • At the same time, soil, trees, plantations, and forests absorb carbon dioxide for the natural process of photosynthesis, thus reducing the overall carbon dioxide content in the atmosphere.
    • This is the reason why large scale land use changes, like deforestation or urbanization, or even a change in cropping pattern, have a direct impact on the overall emissions of greenhouse gases.
    • The report talks about the contribution of land-related activities to global warming — how the different uses of land, like agriculture, industry, forestry, cattle-rearing, and urbanization, was affecting emissions of greenhouse gases.

    Food and its carbon footprint

    • The global food system currently accounts for the majority of emissions from the ‘agriculture, forestry and land use’ (AFOLU) sector.
    • If we include energy emissions from storage, transport, packaging, processing, retail, preparation, and waste, food accounts for 22-35 percent of all anthropogenic emissions.
    • The FAO estimates that food waste accounted for 4.4 gigatonnes and 8 percent of CO2 emissions in 2011, giving lie to the notion that carbon consumption is a driver of human welfare.

    Agricultural emissions

    • The IPCC is clear about the excesses of ‘modern’ agriculture.
    • This is most directly reflected in emissions of nitrous oxide, a greenhouse gas with nearly 300 times the warming potential of carbon dioxide.
    • Nitrous oxide emissions from land have more than doubled since 1961, with cropland soils emitting around three megatonnes each year.
    • The IPCC attributes this to “inefficient nitrogen application (over-application or poorly synchronized with crop demand timings) to soils”.
    • The solution lies in revolutionizing farm-level management, a challenge in developing countries with small land-holdings and limited capital to invest.

    Desertification

    • The United Nations has dedicated this decade to combating desertification, yet the climate benefits of this push are poorly understood.
    • By 2050, between 170 to 270 million people living in drylands will be vulnerable to water stress, drought intensity, and habitat degradation.
    • The report emphasizes, though that “preventing desertification is preferable to attempting to restore degraded land”. That involves preserving the topsoil and soil quality in currently cropped land.

     

    Third report: On Ocean and Cryosphere

    • The latest report, on Ocean and Cryosphere, is the last in a series of three that the IPCC had been asked to produce to assess the impacts of climate change on specific themes.
    • On May 11 this year, the global concentration of carbon dioxide in the atmosphere was measured to have crossed the 415 parts per million (ppm) marks for the first time ever.

    Why oceans?

    • The climate change impact mitigation and adaptation portfolio for the oceans and cryosphere include energy, carbon storage, pollution reduction, coastal vegetation, open ocean production, and ocean acidification, etc.
    • Over the 21st century, the ocean is projected to transition to unprecedented conditions with increased temperatures, further ocean acidification, marine heatwaves and more frequent extreme El Niño and La Niña events.
    • Land and ocean together absorb nearly 50 percent of greenhouse gases emitted every year through natural processes in the carbon cycle.
    • The importance of land, or ocean, as a carbon sink, thus cannot be overstated in the global fight against climate change.

    Highlights of the report

    • The new ocean report noted that the global mean sea level had risen by 16 cm between 1902 and 2015 and that the rate of increase had doubled in the last decade.
    • The sea levels were rising because of the thermal expansion of ocean waters due to rising temperatures as well as due to the melting of glaciers and polar ice.
    • It says that between 2006 and 2015, the Greenland ice sheet lost ice-mass at an average rate of 278 billion tonnes every year, while the Antarctic ice sheet lost a mass of 155 billion tonnes on an average every year.
    • Snow over areas outside of these two regions, like the glaciers in the Himalayas, together lost an average of 220 billion tonnes of ice every year.

    Why so many reports are being published?

    • It is not unusual to see the conversation around climate change picking up during this time of the year.
    • There are several reasons for the sudden rise in attention to the climate debate this year.

    “Now or never” is nearing

    • Last year’s IPCC report on 1.5°C mentioned that humanity had barely 12 years to keep alive the hopes of restricting global temperature rise to within 1.5°C from pre-industrial times.
    • This was contingent not just on immediate aggressive action from countries, but also on the development of technologies that could remove carbon dioxide from the atmosphere.
    • This report has instilled a new sense of urgency in climate conversations.

    Transition year ahead

    • Next year, 2020, happens to be the transition year for the international climate regime, from the Kyoto Protocol to the Paris Agreement.
    • The Kyoto regime has been a major underachiever in reducing greenhouse gas emissions.
    • The Paris Agreement, in so far as it makes it mandatory for every country to initiate actions and not just rich and developed nations as under the Kyoto Protocol, is expected to deliver much better results.

    NDC’s were insufficient

    • As required by the Paris Agreement, every country had already finalized and submitted a climate action plan, called NDCs, in 2015.
    • The assessment of several NDCs has concluded that these actions were not adequate to achieve the global goal of keeping temperature rise within 2°C from pre-industrial times.
    • But the NDCs have to be updated every five years, and the countries are scheduled to do it next year.

    Raising curiosities

    • Those concerned about climate change are hoping that in the light of these reports, and growing fresh evidence, countries will show greater ambition when they update their NDCs next year.
    • The Paris Agreement also provides for a review of all climate actions in 2023 to assess whether the individual actions of countries were adding up to what was required to achieve the goal.
    • Countries can then decide what more needed to be done.

    Way Forward

    • Limiting warming to the lower goal is not impossible but will require unprecedented changes.
    • However, it is being argued now that 2023 might be too late for such an exercise.
    • Therefore, momentum is being built to nudge the countries to announce more ambitious actions before that.
    • The move to get countries to commit to a net-zero target by 2050 is a part of these efforts.
    • It is up to governments to decide whether those unprecedented changes are acted upon.

     



    References

    https://www.downtoearth.org.in/blog/forests/planting-forests-no-panacea-for-the-climate-crisis-ipcc-66093

    https://indianexpress.com/article/opinion/editorials/the-1-5c-challenge-intergovernmental-panel-on-climate-change-report-5392710/

    https://indianexpress.com/article/explained/explained-snippets-for-limiting-global-warming-to-1-5c-the-four-projected-pathways-5392811/

    https://www.downtoearth.org.in/news/climate-change/poor-agri-dietary-practices-have-intensified-climate-change-ipcc-66086

    https://indianexpress.com/article/explained/why-latest-ipcc-report-matters-climate-change-report-6035008/

  • [Burning Issue] Indian Diaspora and the recent engagement


    Context

    • Indian Diaspora is a generic term used for addressing people who have migrated from the territories that are currently within the borders of India.
    • From Google CEO to Nobel laureate scientist Har Gobind Khorana, the list of Indians abroad and their contribution to the world goes endlessly.
    • According to the UN, in 2019 Indians comprised the world’s largest migrant diaspora populations in the world with over 17.5 million Indians (6.4% of global migrants) out of total 272 million migrants worldwide
    • The recent gathering of the Indian-American community in Houston has proved to be a special moment in India’s diaspora diplomacy.

    Historical perspective

    • The incorporation of the British Empire in India can be linked to the existence of modern Indian Diaspora all over the world.
    • Dating back to the nineteenth century, Indian indentured labor was taken over to the British colonies in different parts of the world.
    • In the post World War II period, most of the Indian labor and professionals got scattered and it was a worldwide phenomenon.
    • The reconstruction of Europe after the war was provided by Indians and other South Asians, particularly in the United Kingdom and Netherlands.
    • Most recently, Indians have made their presence visibly felt in professions in countries like the United States, Canada, and Australia.

    Major sections of Indian Diaspora

     

    a. Indians in the Gulf

    • Around 8.5 million Indians live and work in the Gulf countries, one of the largest concentrations of migrants in the world.
    • The geographical and historical proximity of the Arabian Peninsula to India makes it a convenient destination for Indians.
    • Today migrants from across India are working and living in the Gulf countries (Saudi Arabia, UAE, Qatar, Bahrain, Oman, and Kuwait).

    b. Indians in USA

    • The US, the world’s fourth-largest country with four different time zones — saw a 7 percent increase in arrivals from India in July 2019, and that is bound to increase.
    • In recent decades the population has grown substantially, with 2.4 million Indian immigrants resident in the United States as of 2015.
    • This makes the foreign-born from India the second-largest immigrant group in the US after Mexicans.

    Categorizing Indian’s abroad

     

    • Overseas Indians, officially known as Non-resident Indians (NRIs) or Persons of Indian Origin (PIOs), are people of Indian birth, descent or origin who live outside the Republic of India.
    • Overseas Indians are various individuals or ethnic groups associated with India, usually through ancestry, ethnicity, nationality, citizenship or other affiliation and live abroad overseas.
    • According to a Ministry of External Affairs report, there were 30,995,729 NRIs and PIOs residing outside India as of December 2018.

    1. Non-Resident Indian (NRI)

    • Strictly asserting non-resident refers only to the tax status of a person who, as per section 6 of the Income-tax Act of 1961, has not resided in India for a specified period for the purposes of the Act.
    • The rates of income tax are different for persons who are “resident in India” and for NRIs.
    • For the purposes of the IT Act, “residence in India” requires stay in India of at least 182 days in a financial year or 365 days spread out over four consecutive years and at least 60 days in that year.
    • According to the act, any Indian citizen who does not meet the criteria as a “resident of India” is a non-resident of India and is treated as NRI for paying income tax.

    2. Person of Indian Origin (PIO)

    Person of Indian Origin (PIO) means a foreign citizen (except a national of Pakistan, Afghanistan, Bangladesh, China, Iran, Bhutan, Sri Lanka and/or Nepal), who:

    • at any time held an Indian passport OR
    • either of their parents/grandparents/great-grandparents were born and permanently resident in India as defined in GoI Act, 1935 and other territories that became part of India thereafter provided neither was at any time a citizen of any of the aforesaid countries OR
    • is a spouse of a citizen of India or a PIO.

    3. Overseas Citizenship of India (OCI)

    • After multiple efforts by leaders across the Indian political spectrum, a pseudo-citizenship scheme was established, the “Overseas Citizenship of India”, commonly referred to as the OCI card.
    • The Constitution of India does not permit full dual citizenship.
    • The OCI card is effectively a long-term visa, with restrictions on voting rights and government jobs.
    • An OCI is however entitled to some benefits such as a multiple-entry, multi-purpose life-long visa to visit India.
    • They are exempted from police reporting for any length of stay in the country.
    • They are also granted all rights in parity with NRIs except, the right to acquisition of agricultural or plantation properties.

    Significance of Indian diaspora

     

    I. Contribution in freedom struggle

    • Mahatma Gandhi’s struggle for ending institutionalized discrimination against Indians in South Africa became an inspiring legend for enduring sentimentalism about the diaspora in modern India.
    • The diaspora also became a vehicle for promoting the cause of Indian independence among the political elites of major countries.
    • As the independence movement gathered momentum at home, it began to influence many Indian communities abroad.

    II. Diaspora as Cultural extension

    • The act of migration is not just limited to geographical limits; rather it is a cultural extension.
    • Let us take the example of the Sikh community. The Sikhs are one of the largest migrants from India to the UK, Canada and many other countries.
    • They have very well maintained their culture and ethnic existence for decades.

    III. Remittances

    • A remittance is a transfer of money by a foreign worker to an individual in his or her home country.
    • Money sent home by migrants is one of the largest financial inflows to developing countries.
    • A/c to the World Bank, India retained its position as the world’s top recipient of remittances with its diaspora sending a whopping $79 billion back home in 2018.
    • Without these remittances, India’s balance of payment position would have looked worse.
    • India is followed by China (USD 67 billion), Mexico (USD 36 billion), the Philippines (USD 34 billion), and Egypt (USD 29 billion).

    IV. Diaspora as ‘Agents of change’

    • Diaspora acts as ‘agents of change’ facilitating and enhancing investment, accelerating industrial development, and boosting international trade and tourism.
    • Diaspora’s motives to invest in India are long-lasting as many of them wish to establish a long-term base in India.
    • Another tangible long-term advantage in nurturing ties with an active Diaspora is an accelerated technological sector.

    V. Technological development and entrepreneurship

    • Another tangible long-term advantage in nurturing ties with an active diaspora is an accelerated technological sector and increased socio-economic development.
    • Some examples to illustrate this phenomenon are Bengaluru, Gurugram and Hyderabad as thriving IT hubs that not only house multinational companies (MNCs) but also multiple Indian start-ups.
    • The government can further tap this transnational entrepreneurship, including support for entrepreneurs and small businesses in India in the form of knowledge transfers and finances from the diaspora.

    VI. Enhancing India’s global say

    • India’s permanent membership to the UNSC can become a reality with support from the diaspora.
    • According to Article 108 of the Charter, for a UN reform, an affirmative vote from two-thirds of its members and support from the five permanent members is required.
    • India has demonstrated its diplomatic influence with the reappointment of Justice Dalveer Bhandari to the International Court of Justice in November 2017, when it secured two-thirds of the votes at the UN.
    • Apart from political pressures and ministerial and diplomatic level lobbying, India can leverage its diaspora to influence states such as Canada and Mexico to support India’s membership

    Most Importantly,

    VII. Diaspora diplomacy

    • A less tangible but important advantage in having a large immigrant group is “diaspora diplomacy” .
    • Historically, India has benefitted from its diaspora.
    • Two instances stand out: lobbying for the US-India Civilian Nuclear Agreement Bill in 2008 and their remittance inflow.
    • The recent engagement of PM Modi in Houston is a continuation of his extraordinary political investment in engaging the Indian diaspora.
    • It is based on the recognition that a large and very successful diaspora has widened India’s footprint and can contribute to the achievement of India’s domestic and international goals.

    India’s engagement with Diaspora: A policy-wise perspective

    • Many of the themes of India’s contemporary diaspora policy had their origins in the approach of the Indian national movement before independence.
    • Concern for the treatment of Indian indentured labor around the world became an important part of the rise of the national movement in the early 20th century and the formation of its international consciousness.
    • The nationalist backlash against the Indian communities in Africa and Asia in the 1950s and 1960s saw Delhi consciously distance itself from the diasporic communities.
    • As India turned inwards, Delhi also took a dim view of the “brain drain” as many well-trained Indians began to look for opportunities elsewhere.
    • It was only in the late 1980s that Delhi began to rethink its approach to the diaspora.

    Change in recent years

    • PM Rajiv Gandhi was the first to appreciate the potential role diaspora could play in advancing national development and improving India’s ties with the US.
    • As he launched the reform era, P V Narasimha Rao sought investments from the diaspora.

    Vajpayee Era

    • The NDA government that ruled India between 1998 and 2004 had additional ideological and cultural reasons to emphasize the importance of the diaspora.
    • Atal Bihari Vajpayee saw the long-term strategic value of the engagement when he called for a ‘partnership among all children of Mother India so that our country can emerge as a major global player’.
    • He constituted a committee in 2000 under the leadership of L.M. Singhvi, an MP, to suggest a variety of policy initiatives to strengthen the bonds with the overseas Indian communities.
    • The committee’s recommendations led to the initiation of what we now know as Pravasi Bharatiya Divas and the formation of a separate Ministry for Overseas Indians.
    • Other suggestions covered important cultural, educational and social subjects forming the basis of some innovative initiatives like the Know India Programme (KIP) and Study India Programme (SIP) .
    • These have engaged the youth living abroad and the Tracing the Roots Scheme, through which some Indians have been able to trace their roots in India.

    The Modi era

    • With coming to power, PM Modi has discarded the old attitude of reproaching the diaspora, especially that in the West, for abandoning their responsibility to their motherland by leaving its shores.
    • Instead, he has affirmed that India is proud of the diaspora’s achievements around the world.
    • He exhorted them to actively contribute to the acceleration of India’s economic and social development.
    • Modi has also recognized that the connection with the diaspora could be leveraged to influence the political classes of the host nations.
    • Relaxing the visa norms for the overseas communities, improving physical connectivity and the ease of doing business in India have been the policy consequences of Modi’s more intensive outreach to the diaspora.

    Various policy initiatives  

     

    Education

    • NRI seats are reserved in all the medical, engineering and other professional colleges.
    • Other youth-centric outreach programs include scholarships to pursue undergraduate courses in recognized UGC universities in India, as well as Bharat Ko Jano online quizzes.

    Voting rights

    • The Representation of the People (Amendment) Bill 2017 the provision would help non-resident Indians (NRIs) to participate in the electoral process.
    • It extends the facility of ‘proxy voting’ to overseas Indians, on the lines of service voters.

    Know India Program (KIP)

    • It is a flagship initiative for Diaspora engagement which familiarizes Indian-origin youth (18-30 years) with their Indian roots and contemporary India has been refashioned.

    Minimum Referral Wages (MRW).

    • A number of policies were announced keeping in mind the protection of welfare and interest of Indians abroad; for example, the 2014 Minimum Referral Wages (MRW).

    Easing the passport facility

    • The last three years saw the launch of Head Post Offices as passport centers enabling thousands more to apply for a passport.

    Pravasi Bharatiya Divas

    • In the many Pravasi Bharatiya Divas (PBD) that have been organized since he became PM, Modi has been keen on wooing the diaspora.

     

    Engagement comes with responsibilities

     

    • Indian communities abroad are not merely ‘strategic assets’ that Delhi can leverage at will. They also bring significant responsibilities.
    • The diaspora expects that India will stand by them in their hour of need.
    • Indian citizens abroad, who have traveled at their own risk, demand greater protection and support from Delhi when they are caught in difficult situations.
    • On several occasions in recent years, Delhi has had to spend millions of dollars on the protection and evacuation of Indian citizens from crisis zones.
    • These crises have become recurrent thanks to the profound turbulence in the Middle East that is home to one of the largest concentrations of Indians abroad.

    Challenges faced by Diaspora

     

    I. Racial antagonism

    • Rising incidence of hate speech and crimes against Indians by the locals due to racism, communalism emboldened by coming of nationalist and ultra-nationalist governments to power in many countries.

    Protectionism

    • Increasing anti-globalization: Fear of losing jobs and educational opportunities to outsiders has resulted in stricter visa rules in many countries including the USA, Australia, etc.

    Terrorism

    • Sectarian crisis, increasing terrorist activities and war in the Middle East countries (Yemen, Oman, Libya, Syria etc) leave our diaspora vulnerable to attacks.

    Supporting Indians abroad

     

    • India needs both additional resources as well as better systems to deal with the recurring challenges of supporting citizens abroad.

    The resources front

    • There is no escaping the fact that India needs more officers and staff on the ground in its embassies abroad and at headquarters for dealing with the expanding consular work.
    • It makes sense, therefore, to set up a well-staffed permanent mechanism, say a center for consular protection, with representation of all stakeholders under the aegis of the MEA.
    • Three important functions present themselves to this new mechanism. The first relates to information collection and dissemination.
    • The government needs more comprehensive and reliable data on the movement of Indians across national borders.
    • Effective tracking is critical for understanding the broad patterns and changes within them over time, identifying potential problems and offering better services.
    • Delhi must ensure that Indian workers get mandatory briefings on local conditions and risks in their specific destinations as well as their rights vis-a-vis the Indian government.

    Ensuring security abroad

    • The second relates to the codification of India’s rich experience in evacuating Indian citizens abroad.
    • So far there have been 26 Indian evacuation operations between 1947 and 2003.
    • But there has been no real effort within the government to study this experience, draw appropriate lessons and build a more secure foundation for protecting Indian citizens abroad.
    • The new mechanism can draft and circulate to all key departments at the Centre and in relevant states, comprehensive reports on how each crisis was dealt with and the lessons learned.

    Are we overtly relying on our Diaspora?

     

    • PM Modi’s recent visit to the US has showcased some of the emerging problems with India’s diaspora diplomacy.

    I. India’s domestic political fault-lines

    • As in India, so in the US, many liberal sections of the diaspora have become sharply critical of the Modi government.
    • Together, they are having an impact on the leadership of the diaspora, including some US Congress members of Indian origin, as well as the general public discourse within the US on India.

    II. Lack of mainstreaming and consolidation

    • Support of the diaspora is neither automatic nor continuous, and their interests need not be India’s priorities.
    • For example, the Indian community in the US was not vocal enough in criticizing Trump’s proposal to restrict the H-1B visa program that has benefited many Indians.
    • Another challenge is that remittances may not always be used for beneficial purposes.
    • For instance, India faced problems due to foreign funding for extremist movements like the Khalistan movement.
    • Moreover, the diaspora is unfair in expecting India to stand by them at all times of need. This contradictory attitude of the diaspora and the Indian government will need to be worked out.

    III. Getting drawn too deep into the domestic politics of the US

    • The Houston event reflects the growing weight and prestige of the Indian community in the US as well as Trump’s own electoral calculus for the elections next year.
    • While the Indian-American community tends to lean towards the Democratic Party, Trump might be betting that the celebration of the India-US partnership with Modi might let him make a dent in the community.

    IV. Fear of Political Polarization

    • While addressing the diaspora, India should be careful about not crossing some red lines.
    • China, for example, is getting into trouble in many countries for turning its relationship with the diaspora into an active intervention in the domestic politics of the host nation.
    • Given the current polarization of US domestic politics and the profound hostility towards Trump among the Democrats, Delhi has to be careful not to be seen as tilting in favor of one side.

    V. Diaspora as a threat

    • It must be remembered that having a strong diaspora does not always translate to benefits for the home country.
    • India has had problems with negative campaigning and foreign funding, coming from abroad, for separatist movements like the Khalistan movement.
    • In the backdrop of Canadian PM Justin Trudeau’s visit to India in February 2018, multiple media outlets carried articles on the strongest support for the Khalistan movement.
    • The Indian government, while continuing to engage with the diaspora as a part of its foreign policy, will have to be cautious of these sensitive issues that may impact the security of the state.

    Way Forward

     

    • From being a largely inconsequential country after Independence, in part due to its active Non-Alignment Policy, India is today seen as a strong nation headed by a strong leader.
    • India has enjoyed being viewed more favorably by the world since 2014, and the diaspora can further these perceptions.
    • As much of India’s foreign policy aims to translate partnerships to benefits for key projects like Swachh Bharat, Clean Ganga, Make In India, Digital India, and Skill India, the diaspora has plenty of scope to contribute.
    • The diaspora can step up and act as Indian ‘ambassadors’, as it is insufficient and ineffective for a country or its missions abroad to rely only on press releases to change public opinion.
    • The diaspora can provide the requisite strategic impulse, which makes it all the more important to unlock their potential.
    • While they certainly do not determine policy, they can effectively shape it and act as “bridge-builders” between their home and adopted countries.
    • The present government is right in their focus on the diaspora as they are a strategic asset to India.

     

     



     

    References:

    https://www.orfonline.org/research/the-diaspora-and-indias-growth-story/

    https://archive.india.gov.in/overseas/diaspora/nri.php

    https://www.nriol.com/indiandiaspora/

    https://www.livemint.com/politics/news/the-rise-of-the-nri-the-influential-non-voter-1551311249773.html

    https://indianexpress.com/article/opinion/columns/the-howdy-moment-narendra-modi-donald-trump-india-us-6014808/

  • [Burning Issue] Corporate Tax Reduction


    Context

    • Finance Ministry has recently announced a reduction in the base corporate tax rate to 22% from 30% as part of stimulus measures to reverse slowing economic growth.
    • The effective tax rate for domestic corporates, inclusive of surcharges, will fall from 34.94% to 25.17% if they stop availing any other tax sops.
    • For new manufacturing firms set up after October 1, 2019 and commencing operations by March 31, 2023, the effective tax rate will fall from 29.1% to 17%.

    Corporate Tax: Background

    • Indian taxation system is divided into two types: One is Direct Taxes and other is Indirect Taxes.
    • Talking about direct taxes, it is levied on the income that different types of business entities earn in a financial year.
    • There are different types of taxpayers registered with Income tax department and they pay taxes at different rates.
    • An individual and a company being a taxpayer are not taxed at the same rate. Therefore, Direct Taxes are again subdivided as:

    Income Tax

    • This tax is paid by the taxpayers other than companies registered under company law in India on the income earned by them.
    • They are taxed on the basis of slabs at different rates.

    Corporate Tax

    • This tax is paid by the companies registered under company law in India on the net profit that it makes from businesses.
    • It is taxed at a specific rate as prescribed by the income tax act subject to the changes in the rates every year by the IT department.

    Corporate Tax in India

    • Domestic as well as foreign companies are liable to pay corporate tax under the Income-tax Act.
    • While a domestic company is taxed on its universal income, a foreign company is only taxed on the income earned within India i.e. is being accrued or received in India.
    • For the purpose of calculation of taxes under Income tax act, the types of companies can be defined as under:
    1. Domestic Company is one which is registered under the Companies Act of India and also includes the company registered in the foreign countries having control and management wholly situated in India. A domestic company includes private as well as public companies.
    2. Foreign Company is one which is not registered under the companies act of India and has control & management located outside India.

    Why has the government slashed Corporate Tax?

    • The corporate tax cut is part of a series of steps taken by the government to tackle the slowdown in economic growth, which has dropped for five consecutive quarters to 5% in the June quarter.
    • The most immediate reason behind the tax cut may be the displeasure that various corporate houses have shown against the government’s policies.
    • Many investors, for instance, were spooked by the additional taxes on them that were announced by the government during the budget in July and began pulling money out of the country.
    • The government hopes that the new, lower tax rates will attract more investments into the country and help revive the domestic manufacturing sector which has seen lackluster growth.

    Why Corporate Tax?

    • The corporate tax rate is a major determinant of how investors allocate capital across various economies.
    • So there is constant pressure on governments across the world to offer the lowest tax rates in order to attract investors.
    • Tax cuts, by putting more money in the hands of the private sector, can offer people more incentive to produce and contribute to the economy.

    Impact of the rate cut

    • The present cut in taxes can make India more competitive on the global stage by making Indian corporate tax rates comparable to that of rates in East Asia.
    • The tax cut, however, is expected to cause a yearly revenue loss of ₹1.45 lakh crore to the government which is struggling to meet its fiscal deficit target.
    • At the same time, if it manages to sufficiently revive the economy, the present tax cut can help boost tax collections and compensate for the loss of revenue.

    I. Relief to big companies

    • Big companies got a relief of close to 10 percentage points in the effective tax rate including cess and surcharge.

    II. Enhanced competitiveness

    • India was earlier at disadvantage because of a couple of factors and on top of it was the high corporate tax rate.
    • After this cut, base corporate tax rate in India has become competitive and should help boost investment.
    • This reduction was a long-pending demand of Indian firms. India is likely to attract investors looking to move out of China.

    III. Enhanced EoDB

    • Singapore with 17 per cent tax rate, and Vietnam, Thailand, Cambodia and Taiwan with 20 per cent base tax rates are the only countries offering lower rates than India
    • India is now much better than China in terms of rate, transparency, and tax administration so companies can now look at India for setting up new units.

    Criticisms of the move

    • Some see the present tax cut simply as a concession to corporate houses rather than as a structural reform that could boost the wider economy.
    • They believe that the current economic slowdown is due to the problem of insufficient demand which cannot be addressed just through tax cuts and instead advocate greater government spending to boost the economy.
    • Others, however, argue that lackluster demand faced by sectors like automobiles is merely a symptom of supply-side shocks such as the GST that have affected various businesses and caused job losses.
    • If so, tax cuts and other supply-side reforms can indeed help the economy recover from its slump.
    • Towards deficit

    • The lower tax collection could affect the government’s fiscal glide path.
    • With a minor blip in 2016-17, combined fiscal deficit of Centre and states was nearing the 6 per cent of GDP target.
    • A hole of 0.7 per cent of GDP due to tax cuts could compel them to borrow more, and disturb the bond market.

    Way Ahead

    • Investor confidence in the past, it is worth noting, has been affected by retrospective changes to the law made by governments in the past.
    • The government will need to enact along with these tax cuts other structural reforms that reduce entry barriers in the economy and make the marketplace more competitive.
    • The government could, for instance, extend the tax cuts to smaller businesses.
    • The benefits of the present tax cut will also depend on whether the government sticks to its promises in the long run.

     

     



    References

    https://cleartax.in/s/corporate-tax

    https://economictimes.indiatimes.com/definition/corporation-tax

    https://www.thehindu.com/business/Economy/the-hindu-explains-what-corporate-tax-cut-means-for-the-indian-economy/article29470498.ece

    https://www.bloombergquint.com/business/corporate-tax-cuts-assessing-the-multiplier-impact-on-economic-growth

    https://timesofindia.indiatimes.com/business/india-business/corporate-tax-cut-makes-india-an-investment-destination-to-attract-foreign-firms-to-set-up-units-finance-minister/articleshow/71246730.cms

    https://www.livemint.com/opinion/columns/opinion-the-fm-should-extend-the-tax-nudge-to-personal-income-tax-too-1568982792517.html

  • [Burning Issue] Slowdown of Indian Economy


    Context

    • India’s real (or inflation-adjusted) GDP grew at 5 per cent in the June 2019 quarter of financial year 2019-20 (Q1FY20), the slowest growth in six years (25 quarters).

    • With GDP growth falling consecutively for the fifth time, India has slipped to fourth position globally in terms of real growth rates.
    • The Indian economy is now behind China, the Philippines and Indonesia as it recorded 5 per cent growth in the first quarter of FY20, the slowest in last 25 quarters.
    • This is only the second instance since December 1999 that the GDP growth rate has fallen for five straight quarters.

    Dissecting India’s slowdown

    • Growth is a function of consumption, investment, government demand, and net exports.
    • A slowdown in consumption demand, decline in manufacturing, inability of the Insolvency and Bankruptcy Code (IBC) to resolve cases in a time-bound manner, and rising global trade tension and its adverse impact on exports are some of the factors affecting India’s growth.
    • Two of the government’s most famed economic reforms–demonetization and GST implementation–have been identified as major factors behind the slump in growth in many reports and surveys.
    • Medium and Small Scale Enterprises (MSMEs), the backbone of multiple Indian sectors, are still suffering from the combined consequences of both the reforms.

    Key indicators signifying slowdown

    Agriculture sector

    • The agriculture sector is in distress; the rural economy is struggling from very low inflation resulting in stagnant income.
    • Urban wages are either stagnant or decreasing due to less demand but more supply of unskilled labour.
    • Price of agricultural products is stagnant, resulting in farm distress and fall in income and consequent fall in purchasing power—which is directly related to lack of demand.

    Domestic car sales

    • During April to June 2019, car sales fell by 23.3% in comparison to the same period in 2018.
    • This is the biggest contraction in quarterly sales since 2004.
    • A slowdown in car sales negatively impacts everyone from tyre manufacturers to steel manufacturers to steering manufacturers etc., when it comes to the backward linkages that car manufacturers have.
    • As far as forward linkages are concerned, many auto dealerships are shutting down or shrinking.

    Housing sales

    • As per a report, India’s top 30 cities had 1.28 million unsold housing units as of March 2019, a jump of 7% from March 2018, when the number was at 1.2 million.
    • This means that builders are building new houses at a faster pace than people are buying them.
    • The real estate sector has forward and backward linkages with 250 ancillary industries.
    • So, when the real estate sector does well, many other sectors, right from steel and cement to furnishings, paints, etc., do well too.
    • The fact that real estate prices haven’t gone up in years makes people feel less wealthy and as a result spend less.

    FMCG companies

    • The volume growth or the number packs sold, of fast-moving consumer goods (FMCG) companies has slowed down over the last one year.
    • If we look at Hindustan Unilever Ltd, the volume growth between April and June 2019 was at 5%. It was 12% during the same period last year. There are other examples as well.
    • Dabur India posted a volume growth of 6% during April and June 2019, against 21% last year. Britannia was down to 6% against 13% last year.
    • Indeed, this is worrying, given that people seem to be going slow on making everyday purchases.

    Final consumption of finished steel

    • Creation of any new physical infrastructure requires steel.
    • Hence, a faster increase in steel consumption than in the past shows increased investment activity than in the past.
    • The consumption of finished steel grew by 6.6% between April and June 2019, in comparison to the same period during the last year, when it had grown by 8.8%.
    • This was the slowest in two years.

    New investment projects

    • The value of new projects announced during April to June 2019 fell by 79.5% year on year. This is the highest fall since September 2004.
    • In absolute terms, the value of new investment projects announced during April to June 2019 stood at ₹71,337 crore, the lowest since September 2004.
    • This is a great indicator of the fact that businesses really do not have faith in the economic future of India, irrespective of what they say in the public domain.
    • The investment projects completed fell by 48% in comparison to the last year.

    Expenditure and net exports

    • Government expenditure tends to form around 10-11% of the Indian economy.
    • In the last two fiscal years, the growth in government expenditure was at 19.1% and 13.2%, the highest since the financial crisis years of 2008-09 and 2009-10.
    • Looking at 2019-20 fiscal to drive economic growth, the government needs to spend more and for that the tax growth is important.

    Net exports

    • This figure for April to June 2019 stood at ‘-$46 billion’. This was almost similar to the net exports for April to June 2018 at -$46.6 billion.
    • This is primarily because both exports and imports during the period were at almost similar levels as last year.
    • Given this, there hasn’t been any increased economic activity on the exports front either.

    Investors Confidence

    • Investment, unlike consumption, satisfies no immediate want.
    • The businessman putting his money today is basically taking a bet on the future, when it would start yielding returns. Such bets are a function of the “state of confidence” at the time of investment.
    • A good indicator of “state of confidence” is new investment proposals.
    • Their value fell from Rs 20 lakh crore in 2015-16, to Rs 16.2 lakh crore, Rs 11.4 lakh crore and Rs 10 lakh crore in the following three fiscals.

    Measures for reviving growth

    • Sectoral collapse has happened because of poor business decisions in banking, real estate, construction and lately in NBFCs/housing finance companies (HFCs).
    • Now all these sectors are looking for stimulus packages to bail them out from their mistakes.

    Consolidation of PSBs

    • The current initiatives are either short-term measures or long-term reforms. The consolidation of Public Sector Banks (PSBs) falls into the latter category.
    • It will not turnaround the banking sector, ease the credit flow or even improve the transmission of interest cuts — the three most important problems contributing to the slowdown.
    • It is a structural reform much needed, long overdue and may reduce the recapitalization requirements.
    • It will change the credit evaluation, disbursement and monitoring of loans, which is the core problem in PSBs.

    Easing tax slabs

    • To kick-start the consumption cycle money has to go into the common man’s pocket.
    • This can happen by reducing income tax for the lowest slab, as recommended by the Direct Tax Code report.
    • It can be done by making GST filing quarterly for MSMEs with less than Rs 10 crore turnovers to ensure they survive the slowdown.
    • The GST Council can look at reducing rate slabs and reduce the overall burden on corporates.

    Boosting lendings

    • In a first sign of government addressing the economic woes, Finance Minister announced the removal of the surcharge on capital gains on shares for both foreign and domestic investors.
    • It provided an upfront Rs 70,000-crore equity infusion into public sector banks to boost lending, and unveiled measures to push automobile sales.
    • The surcharge of 3 per cent and 7 per cent on those earning between Rs 2 crore and Rs 5 crore, and over Rs 5 crore respectively had been announced as part of the Budget proposals.

     

    These immediate steps can help revive the economic growth:

    • Give auto sector incentives to invest and shift to electric vehicles
    • Incentives to auto sector employees to upskill on electric vehicles
    • Reduce the GST slab rates
    • Adopt the Direct Tax Code, cut income tax for the bottom slab
    • Improve credit flow to both consumer and industry
    • Change the credit culture in public sector banks
    • Stimulus should drive investment, upskilling for displaced employees
    • Factor market reforms, including bringing the cost of land down.

     

    Way Forward

    • Battling the economic slowdown may require a slew of complex steps over the next few months, but the first and the most difficult step for the government is to acknowledge the slowdown.
    • It should consult economic experts, some of whom have been urging the government to focus on boosting investments, which could help in reviving consumer demand and increase the output of key sectors.
    • The government’s primary goal should be setting the basics right instead of going ahead with a “band-aid” patchwork.
    • So, the only immediate solution for India seems to be to boost consumption through a stimulus given directly to people, in the classical Keynesian mould.
    • Of course, such a stimulus should be combined with reforms to boost business morale and confidence.

     

     



    References:

    https://economictimes.indiatimes.com/news/economy/policy/quick-ways-out-of-slowdown-10-things-government-can-do/articleshow/70934072.cms

    https://www.livemint.com/news/india/15-ways-to-define-india-s-slowdown-1565715613762.html

    https://indianexpress.com/article/explained/explained-in-economic-slowdown-a-back-story-about-falling-investor-confidence-5936308/

    https://www.indiatoday.in/news-analysis/story/why-this-economic-slowdown-is-serious-1580824-2019-08-14

    https://www.hindustantimes.com/opinion/state-of-indian-economy-decoding-the-5-problem/story-UfwoflzpqXTrYmIaOpENGL.html