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Distribution: weekly

  • Labour policies need to change for better quality livelihoods

    Context

    • One of the biggest economic fallout of the pandemic has been the deteriorating labour market conditions.
    • Given the ebb and flow of the pandemic, the growth recovery is likely to be fragmented and will weigh on the number and types of jobs available.

    What is quality and sustainable livelihood?

    • “A livelihood comprises the capabilities, assets and activities required for a means of living. A livelihood is sustainable when it can cope with and recover from stresses and shocks and maintain or enhance its capabilities and assets both now and in the future, while not undermining the natural resource base.’’

    Sustainable livelihoods objectives

    • improved access to high-quality education, information, technologies and training and better nutrition and health;
    • a more supportive and cohesive social environment;
    • more secure access to, and better management of, natural resources;

    Definition of labour welfare

    • Labour welfare relates to taking care of the well-being of workers by employers, trade unions, governmental and non-governmental institutions and agencies.
    • Welfare includes anything that is done for the comfort and improvement of employees and is provided over and above the wages.

    Why labour law is needed

    • Labour law aims to correct the imbalance of power between the worker and the employer; to prevent the employer from dismissing the worker without good cause; to set up and preserve the processes by which workers are recognized as ‘equal’ partners in negotiations about their working conditions etc.

    Constitutional mandate

    • Article 41 – The state shall within the limits of its economic capacity and development make effective provision for securing the right to work, to education and to public assistance in cases of unemployment, old age, sickness and disablement and in other cases of underserved want.
    • Article 42 – The state shall make provision for securing just and humane conditions of work and for maternity relief.

    Challenges in labour welfare in India

    • Technical glitches: Under the Constitution of India, Labour is a subject in the concurrent list where both the Central and State Governments are competent to enact legislations. As a result, a large number of labour laws have been enacted catering to different aspects of labour e.g. occupational health, safety, employment etc.
    • Loopholes: Because of the predominantly heavy handed labour regulations (also called as Inspector Raj) with exploitable gaps, the MNCs and domestic organizations have resorted to alternate ways i.e. employing contract labour at less than half the payroll of a permanent employee.
    • Gaps in labour laws: One of the main reasons for labour reforms is the concept of contract labour. Trade Unions suggest that this concept itself should be removed. There is stringent hiring and firing process defined in Industry Disputes Act. It makes it mandatory for the organization to seek Government permission before removing an employee.

    Global best practices  

    • Universal basic income pilot project: For two years Finland’s government gave 2,000 unemployed citizens €560 a month with no strings attached. It was the first nationwide basic income experiment. The concept is slowly becoming difficult for people to ignore.

    How will dynamic policies and labour codes respond?

    • Labour productivity: It is likely to improve with both employees and employers developing a sense of being partners in wealth creation.
    • Labour reform: A transparent environment in terms of workers’ compensation, clear definition of employee rights and employer duties.
    • Compliance un-burdening: Simplified labour codes making compliance easier are likely to attract investments.
    • Formalization of the economy: With more workers in the organized sector, leakage in terms of direct as well as indirect taxes may be plugged.

    Conclusion

    • The guiding principle for India’s labour policy reformers should not merely be ring fencing jobs but safeguarding workers through social assistance, re-employment support (such as that which is provided in several Western nations) and skill building, and supporting employers in employee training and development.

    Mains question

    Q. Why there is need to make labour policies more dynamic? Do you think universal basic income approach will be the best way forward for achieving quality livelihood?

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  • Indian Olympic Association (IOA)

    The Supreme Court has ordered status quo on the implementation of a Delhi High Court order to hand over the affairs of the Indian Olympic Association (IOA) to a Committee of Administrators (CoA).

    Why in news?

    • The FIFA had recently gone ahead and suspended the AIFF, citing “third party interference”, leaving an air of uncertainty on the prospect of India hosting the Under-17 Women’s World Cup in October.
    • The governance of the AIFF had similarly been transferred to a CoA by the Supreme Court.

    Delhi HC case

    • The high court had passed the order on a petition seeking a direction for redrafting of the IOA constitution in accordance with the National Sports Code, 2021.

    Controversy with IOC

    • According to IOC rules, if any national body is governed by a non-elected body, it is seen as interference by a third party.
    • The moment the CoA takes charge, there is 99 per cent chance that India and our sportspersons will get suspended from all international events and Olympic Games.

    Olympics and India

    • India first participated in the Olympics in 1900 in Paris.
    • The country was represented by Norman Pritchard, an Anglo Indian who was holidaying in Paris during that time.
    • The seeds for creation of an organisation for coordinating the Olympic movement in India was related to India’s participation in the 1920 and 1924 Olympics.
    • Back then, Sir Dorabji Tata suggested the need for a Sports body at National level for promoting Olympic Sport in united India.
    • After the 1920 Games, the Committee sending the team to these Games met, and, on the advice of Sir Dorabji Tata, invited Dr. A.G. Noehren (Physical Education Director of YMCA India) to also join them.

    Establishment of Indian Olympic Association (IOA)

    • Subsequently, in 1923-24, a provisional All India Olympic Committee was set-up, which organised the All India Olympic Games in February 1924.
    • Eight athletes from these Games were selected to represent India at the 1924 Paris Summer Olympics, accompanied by manager Harry Crowe Buck.
    • This gave impetus to the development and institutionalization of sports in India, and, in 1927, the Indian Olympic Association (IOA) was formed, with Sir Dorabji Tata as its founding President and Dr. A.G. Noehren as Secretary.
    • The same year as it was formed, 1927, the Indian Olympic Association was officially recognised by the International Olympic Committee.

    Also read

    Better time for Sports in India: PM

     

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  • Long road ahead: Towards women empowerment

    Context

    • Gender parity is not recovering, according to the Global Gender Gap Report 2022. It will take another 132 years to close the global gender gap.
    • As crises are compounding, women’s workforce outcomes are suffering and the risk of global gender parity backsliding further intensifies.

    Why in news?

    • India has one of the world’s lowest female labour force participation rates (LFPR).
    • This means the productive potential of half of the population goes unutilized.

    What is women’s empowerment all about?

    • Women’s empowerment can be defined to promoting women’s sense of self-worth, their ability to determine their own choices, and their right to influence social change for themselves and others.

    Why it is needed?

    • Human resource: Empowerment of women is a necessity for the very development of a society, since it enhances both the quality and the quantity of human resources available for development.
    • Sustainable development: Women’s empowerment and achieving gender equality is essential for our society to ensure the sustainable development of the country.

    Constraints in women empowerment

    • Illiteracy: Illiteracy has been found as major constraints for the attainment of women Empowerment in the nation. It is the rate of literacy which governs the reservation, takeover and competition among women for their right in country. Female child are less privileged for attaining schools.
    • Discriminatory nature of male towards female: In India, since the olden days, the men have been in control of politics, social, economical as well as cultural and traditional spheres of life.
    • Religious and cultural beliefs: This is another important constraint of women’s empowerment in India which tightens up the female population. It is because of unknowing believes and following superstitions.
    • Less participation of women in political field: In particular, women them self involves less in the political filed. Their participation is very insignificant in political issues and right as compared to male population.

    What happens if we don’t act?

    • Economical losses: Evidence shows that economic disempowerment of women can result in losses of 10% of GDP in industrialized economies and over 30% in South Asia and in the Middle East and North Africa.
    • Work opportunities: India’s GDP could grow by nearly ₹3 trillion if women were brought into the labour market and given access to formal, ‘decent’ work opportunities.

    Case study

    Mahila Sanatkar a craftswomen cooperative located in Hyderabad.

    Economic and social  effects: It  is  noticeable  some  social  results  such  as  skill building, self-confidence  enhancement,  the  mobility acquired  by the  women.

    What is needed to improve women’s welfare?

    • Community sensitization: Persistent effort must be directed toward community sensitization to root out patriarchal social norms.
    • Directional efforts: In addition to enforcing existing regulations like minimum wages, there must be supportive ancillary policies including childcare; secure transport; lighting; safety at work; and quotas in hiring, corporate boards, and politics to foster more  women  in  leadership.
    • Universal social mobilization: Identification and inclusion of the poor remains a challenge. There is need to develop community resource persons for participatory identification of poor.
    • Training, Capacity Building & Skill Upgradation: There is lack of appropriate training plans, quality training and availability of expert training institutions.
    • Universal Financial Inclusion: Lack of uniform financial management systems at all tiers of SHGs has impacted the growth in bank accounts, improvement in financial literacy, and absorption capacity of community members.
    • Multiple & Diversified Livelihoods: There is lack of progressive leadership for inclusiveness of small-sized enterprises at the federal level. Market/ forward linkages, is largely missing.

    Conclusion

    • If we improve women’s labour force participation, not only do we harness the massive productive potential of half of the population, but their earnings will yield enormous dividends for the future of the country and economy.

    Mains question

    Q. What do you consider as true women empowerment? Assess the constraints for the same and give directional efforts needed to overcome it.  

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  • What is causing Arctic Amplification?

    Finnish researchers have found that the Arctic is heating four times faster than the rest of the planet.

    Arctic is warming faster

    • The warming is concentrated in the Eurasian part of the Arctic, where the Barents Sea north of Russia and Norway is warming at an alarming rate — seven times faster than the global average.
    • Other studies indicate that the Arctic amplification is four times the global rate.

    What is Arctic Amplification?

    • Global warming has hastened due to anthropogenic forces or human activities since pre-industrial times and has increased the planet’s average temperature by 1.1 degrees Celsius.
    • While changes are witnessed across the planet, any change in the surface air temperature and the net radiation balance tend to produce larger changes at the north and south poles.
    • This phenomenon is known as polar amplification; these changes are more pronounced at the northern latitudes and are known as the Arctic amplification.

    What causes amplification?

    • Among the many global warming-driven causes for this amplification, the ice-albedo feedback, lapse rate feedback, water vapour feedback and ocean heat transport are the primary causes.
    • Sea ice and snow have high albedo (measure of reflectivity of the surface), implying that they are capable of reflecting most of the solar radiation as opposed to water and land.
    • In the Arctic’s case, global warming is resulting in diminishing sea ice.
    • As the sea ice melts, the Arctic Ocean will be more capable of absorbing solar radiation, thereby driving the amplification.
    • The rate at which the temperature drops with elevation i.e. lapse rate decreases with warming.
    • Studies show that the ice-albedo feedback and the lapse rate feedback are responsible for 40% and 15% of polar amplification respectively.

    What do the previous studies say?

    • The extent of Arctic amplification is debated, as studies show various rates of amplification against the global rate.
    • Studies have shown that the Arctic was warming at twice the global rate prior to the beginning of the 21st century.
    • Already the Arctic surface air temperature has likely increased by more than double the global average over the last two decades.

    What are the consequences of Arctic warming?

    • The causes and consequences of Arctic amplification are cyclical — what might be a cause can be a consequence too.
    • The Greenland ice sheet is melting at an alarming rate, and the rate of accumulation of sea ice has been remarkably low since 2000.
    • This is also marked by young and thinner ice replacing the old and thicker ice sheets.
    • Greenlandic ice sheet holds the second largest amount of ice, after Antarctica, and therefore it is crucial for maintaining the sea level.
    • In 2019, this was the single biggest cause for the rise in the sea level, about 1.5 metres.

    Visible impacts

    • If the sheet melts completely, the sea level would rise by seven metres, capable of subsuming island countries and major coastal cities.
    • The warming of the Arctic Ocean and the seas in the region, the acidification of water, changes in the salinity levels, are impacting the biodiversity, including the marine species and the dependent species.
    • The warming is also increasing the incidence of rainfall which is affecting the availability and accessibility of lichens to the reindeer.
    • The Arctic amplification is causing widespread starvation and death among the Arctic fauna.
    • The permafrost in the Arctic is thawing and in turn releasing carbon and methane which are among the major greenhouse gases responsible for global warming.
    • Experts fear that the thaw and the melt will also release the long-dormant bacteria and viruses that were trapped in the permafrost and can potentially give rise to diseases.

    What is the impact on India?

    • In recent years, scientists have pondered over the impact the changing Arctic can have on the monsoons in the subcontinent.
    • The link between the two is growing in importance due to the extreme weather events the country faces, and the heavy reliance on rainfall for water and food security.
    • A study says that reduced sea ice in the Barents-Kara sea region can lead to extreme rainfall events in the latter half of the monsoons — in September and October.
    • The changes in the atmospheric circulation due to diminishing sea ice combined with the warm temperatures in the Arabian Sea contribute to enhanced moisture and drive extreme rainfall events.

    Steps taken by India

    • In 2014, India deployed IndARC, India’s first moored-underwater observatory in the Kongsfjorden fjord, Svalbard.
    • It aims to monitor the impact of the changes in the Arctic Ocean on tropical processes such as the monsoons.

     

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  • India as a ‘developed’ country: where we are, and the challenges ahead

    In his Independence Day address, PM asked Indians to embrace the “Panch Pran” — five vows — by 2047 when the country celebrates 100 years of independence.

    What are the Panch Prans?

    • Calling it the ‘panch pran‘ — the five resolutions to help India become a developed nation in the next 25 years — PM said:
    1. Every Indian should focus on developing the country;
    2. 100 per cent freedom from slavery (100% Azadi from Ghulami);
    3. Taking pride in Indian heritage;
    4. Ensuring importance is given to unity and integrity and
    5. Every citizen should be responsible

    What is a “developed” country?

    • Different global bodies and agencies classify countries differently.
    • The ‘World Economic Situation and Prospects’ of the United Nations classifies countries into three broad categories: developed economies, economies in transition, and developing economies.
    • The idea is “to reflect basic economic country conditions”, and the categories “are not strictly aligned with the regional classifications”.
    • So, it isn’t as though all European countries are “developed”, and all Asian ones are “developing”.
    • To categorise countries by economic conditions, the United Nations uses the World Bank’s categorisation, based on Gross National Income (GNI) per capita (in current US dollars).

    Issues with such categorization

    • But the UN’s nomenclature of “developed” and “developing” is being used less and less, and is often contested.
    • Former US President Donald Trump had criticised the categorisation of China as a “developing” country, which allowed it to enjoy some benefits in the World Trade Organization.
    • If China is a “developing” country, then the US should also be “made” one, Donald Trump once said.

    But why is the United Nations classification contested?

    • It can be argued that the UN classification is not very accurate and, as such, has limited analytical value.
    • Only the top three mentioned in chart 3 alongside — the US, the UK and Norway — fall in the developed country category.
    • Today, there are 31 developed countries according to the UN in all.
    • All the rest — except 17 “economies in transition” — are designated as “developing” countries, even though in terms of proportion, China’s per capita income is closer to Norway’s than Somalia’s.
    • China’s per capita income is 26 times that of Somalia’s while Norway’s is just about seven times that of China’s.
    • Then there are countries — such as Ukraine, with a per capita GNI of $4,120 (a third of China’s) — that are designated as “economies in transition”.

    Where does India stand?

    • As chart 2 shows, India is currently far behind both the so-called developed countries, as well as some developing countries.
    • Often, the discourse is on the absolute level of GDP (gross domestic product).
    • On that metric, India is one of the biggest economies of the world — even though the US and China remain far ahead.
    • However, to be classified as a “developed” country, the average income of a country’s people matters more.
    • And on per capita income, India is behind even Bangladesh.
    • China’s per capita income is 5.5 times that of India, and the UK’s is almost 33 times.

    India’s progress

    • India has made a secular improvement on HDI metrics.
    • For instance, the life expectancy at birth (one of the sub-metrics of HDI) in India has gone from around 40 years in 1947 to around 70 years now.
    • India has also taken giant strides in education enrolment at all three levels — primary, secondary, and tertiary.

    What is the distance left to cover?

    • When compared to the developed countries or China, India has a fair distance to cover.
    • Even though India is the world’s third-largest economy in purchasing power parity (PPP) terms, most Indians are still relatively poor compared to people in other middle income or rich countries.
    • Ten per cent of Indians, at most, have consumption levels above the commonly used threshold of $10 (PPP) per day expenditures for the global middle class.
    • Other metrics, such as the food share of consumption, suggest that even rich households in India would have to see a substantial expansion of their total consumption to reach levels of poor households in rich countries.

    How much can India achieve by 2047?

    • One way to make this assessment is to look at how long other countries took to get there.
    • For instance, in per capita income terms, Norway was at India’s current level 56 years ago — in the year 1966.
    • Comparing India to China is more useful. China reached that mark in 2007.
    • Theoretically then, if India were to grow as fast as China did between 2007 and 2022, then, broadly speaking, it will take India another 15 years to be where China is now.
    • But then, China’s current per capita income was achieved by the developed countries several decades earlier — the UK in 1987, the US and Norway in 1979.

    Where does India lag?

    • India’s current HDI score (0.64) is much lower than what any of the developed countries had even in 1980.
    • China reached the 0.64 level in 2004, and took another 13 year to reach the 0.75 level — that, incidentally, is the level at which the UK was in 1980.

    What can India achieve by 2047?

    • The World Bank’s 2018 report had made a mention of what India could achieve by 2047.
    • By 2047 — the centenary of its independence — at least half its citizens could join the ranks of the global middle class.
    • By most definitions, this will mean that households have access to better education and health care, clean water, improved sanitation, reliable electricity, a safe environment, affordable housing, and enough discretionary income to spend on leisure pursuits.

    Way forward

    • Fulfilling these aspirations requires income well above the extreme poverty line, as well as vastly improved public service delivery.
    • To see this in perspective, note that at the last count, as of 2013, India had 218 million people living in extreme poverty — which made India home to the poorest people in the world.

     

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  • Centre restores Modified Interest Subvention Scheme (MISS)

    The Union Cabinet has decided to restore the interest subvention on short-term agriculture loans to 1.5% for all financial institutions, including cooperative banks.

    What is the news?

    • The Union Cabinet has approved to restore Interest Subvention on short term agriculture loans to 1.5% for all financial institutions.
    • Thus, Interest Subvention of 1.5% will be provided to lending institutions for the financial year 2022-23 to 2024-25 for lending short term agri-loans upto Rs 3 lakh to the farmers.

    What is MISS?

    • Kisan Credit Card scheme was introduced for farmers, to empower them to purchase agriculture products and services on credit at any time.
    • To ensure that the farmers have to pay a minimal interest rate to the bank, the GoI introduced Interest Subvention Scheme (ISS), now renamed as Modified Interest Subvention Scheme (MISS).
    • It aims to provide short term credit to farmers at subsidized interest rates.

    Features of MISS

    • Under this scheme, short term agriculture loan upto Rs. 3.00 lakh is available to farmers engaged in Agriculture and other allied activities including Animal Husbandry, Dairying, Poultry, fisheries etc. at the rate of 7% p.a.
    • An additional 3% subvention (Prompt Repayment Incentive – PRI) is also given to the farmers for prompt and timely repayment of loans.
    • Therefore, if a farmer repays his loan on time, he gets credit at the rate of 4% p.a.
    • For enabling this facility to the farmers, GoI provides Interest Subvention (IS) to the Financial Institutions offering this scheme.
    • This support is 100% funded by the Centre, it is also the second largest scheme of DA&FW as per budget outlay and coverage of beneficiaries.

    Benefits of MISS

    • Ensuring hassle-free credit availability at cheaper rate to farmers has been the top priority of GoI.
    • Increase in Interest Subvention will ensure sustainability of credit flow in the agriculture sector as well as ensure financial health and viability of the lending institutions.
    • Banks will be able to absorb increase in cost of funds and will be encouraged to grant loans to farmers for short term agriculture requirements and enable more farmers to get the benefit of agriculture credit.
    • This will also lead to generation of employment since short term agri-loans are provided for all activities including Animal Husbandry, Dairying, Poultry, fisheries.
    • Farmers will continue to avail short term agriculture credit at interest rate of 4% per annum while repaying the loan in time.

    Who gets the subvention?

    • The lending institutions include- Public Sector Banks, Private Sector Bank, Small Finance Banks, Regional Rural Banks, Cooperative Banks and Computerized PACS directly ceded with commercial banks.

     

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  • Centre raises thresholds for prosecution under Customs Act

    The government has raised the thresholds for prosecutions and arrests under the Customs Act to ₹50 lakh from ₹20 lakh for smuggling and illegal imports of goods in baggage, and from ₹1 crore to ₹2 crore for cases involving commercial fraud.

    What is Custom Duty?

    • Customs duty refers to the tax imposed on goods when they are transported across international borders.
    • In simple terms, it is the tax that is levied on import and export of goods.
    • Custom duty in India is defined under the Customs Act, 1962, and all matters related to it fall under the Central Board of Excise & Customs (CBEC).
    • The government uses this duty to raise its revenues, safeguard domestic industries, and regulate movement of goods.
    • The rate of Customs duty varies depending on where the goods were made and what they were made of.

    Types of custom duty

    • Basic Customs Duty (BCD): It is the duty imposed on the value of the goods at a specific rate at a specified rate of ad-valorem basis.
    • Countervailing Duty (CVD): It is imposed by the Central Government when a country is paying the subsidy to the exporters who are exporting goods to India.
    • Additional Customs Duty or Special CVD: It is imposed to bring imports on an equal track with the goods produced or manufactured in India.
    • Protective Duty: To protect interests of Indian industry
    • Safeguard Duty: It is imposed to safeguard the interest of our local domestic industries. It is calculated on the basis of loss suffered by our local industries.
    • Anti-dumping Duty: Manufacturers from abroad may export goods at very low prices compared to prices in the domestic market. In order to avoid such dumping, ADD is levied.

     

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  • India-UK Relations

    Context

    • The year 2022 is significant for both India and the UK as our country commemorates the 75th anniversary of its Independence and the two celebrate 75 years of bilateral ties.
    • India-UK relations were elevated to a Comprehensive Strategic Partnership in 2021, based on a shared commitment towards democracy, fundamental freedoms and multilateralism.

    Background of the India-UK ties

    • Partnership: The historical legacy has its own imprint on the relationship. But what is truly remarkable is the broad range of partnerships that have evolved between the two countries, transcending trade, investment and strategic affairs.
    • Close ties: This broader partnership between the world’s fifth and sixth largest economies has its foundations on three critical aspects: education, common law system and the increasingly influential role and impact of the Indian diaspora in the UK.
    • Shared values: The India-UK partnership is based on shared values, respect for the rule of law and common law, and institutional integrity protected by democratic institutions in the both the countries.

    What progress has been made in the India-UK relationship?

    1.Economic: During 2019-20, trade between the two countries stood at US$ 15.45 billion with the balance in favor of India. Between April 2021-February 2022, Indian exports to the UK stood at US$ 9.4 billion (2.5% of India’s exports). The imports in the corresponding period were US$ 6.59 billion (1.2% of India’s imports). There is a scope for significant improvement. Both countries expect that the bilateral trade can reach US$ 100 billion by 2030.

    2.Defense and Security: India and the UK signed the Defence and International Security Partnership (DISP) in November 2015. It provides a strategic roadmap and direction to the evolving India-UK Defence Relations. At present some 70 companies in the UK supply goods for aircraft and related equipment besides supporting platforms like the Jaguar, Mirage and Kiran aircraft.

    3.Indian Diaspora: Around 1.5 million people of Indian origin live in Britain. Indian diaspora are making significant contributions to the British Society. This includes 15 Members of Parliament, three members in Cabinet, and two in high office as Finance and Home Ministers.

    4.Education: The UK-India Education and Research Initiative (UKIERI) was launched in 2005. A new ‘UKEIRI Mobility Programme: Study in India’ was also launched in 2019. Under this Britain’s universities collaborate with Indian partners and send UK students to India.

    5.Health: The successful partnership between Oxford University, AstraZeneca and SII on COVID-19 vaccine demonstrated the potential of Indian and UK expertise working together to solve international challenges. The two sides are also working on pandemic preparedness, Antimicrobial Resistance (AMR), digital health, Ayurveda and alternative medicines, as well as health worker mobility.

    What is the significance of India-UK Relationship?

    1.Regional and global issues of mutual interest: A healthy relationship between the two is imperative for enhancing cooperation in the Indo-Pacific, Afghanistan, UNSC, G20 and Commonwealth. For instance, India welcomed the UK’s accession in the Indo-Pacific Ocean’s Initiative under the Maritime Security pillar.

    2.Tackling Climate Change: The cooperation between them can be helpful to achieve the goals of the Paris Agreement and in implementing the Glasgow Climate Pact. For instance, the countries have agreed to work for early operationalisation of the Global Green Grids-One Sun One World One Grid Initiative (OSOWOG) under ISA. They are also working on the IRIS platform under CDRI which was jointly launched by India and UK at COP26.

    3.Supporting 3rd World Countries: Through the Global Innovation Partnership, India and UK have agreed to co-finance up to £ 75 million to support the transfer and scale up of climate smart sustainable innovations to third countries. The novel GIP Fund created under this Partnership will also aim to raise additional £ 100 million from the market to support Indian innovations.

    3.Strategic Considerations: India can engage with the UK to counter China’s rise in the Indian Ocean Region. The UK on other hand can use India as an alternative destination to China and its companies can invest in India as part of China plus one strategy. It is the business strategy to avoid investing only in China and diversify business into other countries.

    Challenges in India-UK relations

    1.BREXIT

    • Impact on Diaspora– Many members of Indian Diaspora in Britain had voted against BREXIT because it is likely that Indian IT Professional in Britain will face tough competition when UK will open up its border for more skilled migration.
    • Impact on Indian Companies in UK– A hard Brexit would inevitably impact more than 800 Indian companies in UK in crucial sectors of British economy Indian. But data has shown that companies are increasing investments in the UK and creating many thousands of new jobs. This demonstrates that, Brexit or no Brexit, India supports Britain.
    • Impact on India-EU Relations –With €72.5 billion worth of India-EU trade and €19.4 billion of India UK trade at stake, all partners needed to think through this issue carefully in the business and commercial context. Brexit seems to be a challenge to the India EU strategic partnership but India would need to learn to manage its relations with the EU without UK
    • Impact on Trade–Forging a Free Trade Agreement with India will not be a priority for UK as it leaves EU. Instead, Britain would initially focus on tackling existing barriers to trade. But India should grab the opportunity to fill the trade gap in UK, post-Brexit.

    2.Visas and Immigration

    • Illegal Migration: There are more than 1 lakh illegal Indian immigrants in UK. Britain has started putting pressure on Indian government to ensure that Indians who have no right to remain in UK be sent back to India
    • Latest Measures: On the other hand, a white paper on post-Brexit visas and immigration strategy has been unveiled. It is expected to benefit Indian students and professionals, with a focus on skills rather than country of origin. An annual cap of 20,700 on the number of skilled work visas issued will also be removed.

    3.Terrorism

    • In the context of Brexit, unlike the United States’ contemporary view, India continues to be hyphenated with Pakistan in London’s outlook.
    • India states the fact that bilateral relations went beyond the economic realm to issues such as security and terrorism were not being heeded in Britain, despite continuous efforts by India over the past decades.

    4.Totalization agreement

    • The UK government has also made it mandatory for people to pay a health care surcharge as part of their immigration application.
    • When employees are there for a short term as part of their work, it is important that they get to keep their hard-earned money rather than giving UK thousands of pounds of free money as social security taxes.
    • Therefore, it is important for UK and India to sign the totalization agreement at the earliest.
    • The totalization agreement with the UK would have exempted Indian professionals who are working for a certain period of time in the UK from paying those social security taxes if they are paying such taxes in India.

    Way forward

    • The historical baggage also needs to be addressed cooperatively to diminish the possibility of hindrance in future cooperation.
    • The India-United Kingdom are dynamic democracies and the world’s leading economies with impressive advancements in human resources, manufacturing, innovation, research, education, space, defence, green technologies, and clean energy, among other areas.
    • This relationship can be utilized for the betterment of the fields and more collaborations should be undertaken.

    Conclusion

    • As we celebrate the historic collaboration between the UK and India in producing the Covishield vaccine, and look forward to the much-awaited signing of the bilateral Free Trade Agreement, we should not lose sight of the tremendous power that transnational university-wide collaborations can leverage in the accord. Education, research and knowledge partnership ought to become the centre-piece of the India-UK relationship at 75, as we move forward.

    Mains question

    Q.Analyse India-UK bilateral relations with scope of upscaling and challenges they need to overcome .

     

  • How to bring Indian women into the workforce?

    Fewer than one in five Indian women are in the labour force. Four out of five are neither working nor looking for work.

    Why in news?

    • India has one of the world’s lowest female labour force participation rates (LFPR).
    • This means the productive potential of half of the population goes unutilized.

    Why women’s LFPR is so low in India?

    • There are many reasons:
    1. A lack of demand for women workers;
    2. Poor working conditions including low wages,
    3. Safety concerns and exploitation;
    4. Girls studying longer; migration;
    5. Nuclearization of families where there are fewer women to share domestic responsibilities; and
    6. Middle-income effect is where women stop working because the household has enough income.
    • The root of much of this is deep-set patriarchy and neglect for women’s claim to their equal place in a man’s world.

    Why enhancing women’s LFPR is critical?

    • Research and experience highlight that when women have money, they spend it on the well-being of their families.
    • From Brazil’s Bolsa Familia to the Pradhan Mantri Garib Kalyan package for women with Jan Dhan accounts, policymakers have tried to reap the benefits of putting money in women’s hands.
    • One way to do this is to ensure that more women have jobs, higher wages, and equal pay.

    What is needed to improve women’s employment?

    • Persistent effort must be directed toward community sensitization to root out patriarchal social norms.
    • In addition to enforcing existing regulations like minimum wages, there must be supportive ancillary policies including childcare; secure transport; lighting; safety at work; and quotas in hiring, corporate boards, and politics  to  foster  more  women  in  leadership.

    What obstacles do we confront?

    • Correcting asymmetries of power is hard, especially when it entails changing convention.
    • Men who are blind to their privilege, or will be forced to share their privileges, will resist change.
    • Engendered discrimination results in a lack of labour market demand for women workers.
    • This is visible in policies such as honorariums instead of wages for Anganwadi and Asha workers.
    • It is also evident from over-reliance on home-based work for women, on and offline, instead of doing the hard work to ensure equal opportunity, outcomes, and real choice.

    What happens if we don’t act?

    • A concerted effort to advance gender equity must be a central priority over the next 25 years.
    • Evidence shows that economic disempowerment of women can result in losses of 10% of GDP in industrialized economies and over 30% in South Asia and in the Middle East and North Africa.
    • India’s GDP could grow by nearly ₹3 trillion if women were brought into the labour market and given access to formal, ‘decent’ work opportunities.

    Way forward

    • If we improve women’s labour force participation, not only do we harness the massive productive potential of half of the population, but their earnings will yield enormous dividends for the future of the country and economy.

     

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  • Ethanol Blending

    Prime Minister has announced that India has achieved its target of blending 10% sugarcane-extracted ethanol in petrol, ahead of schedule.

    What is ethanol blending?

    • Blending ethanol with petrol to burn less fossil fuel while running vehicles is called ethanol blending.
    • Ethanol is an agricultural by-product which is mainly obtained from the processing of sugar from sugarcane, but also from other sources such as rice husk or maize.
    • Currently, 10% of the petrol that powers your vehicle is ethanol.
    • Though we have had an E10 — or 10% ethanol as policy for a while, it is only this year that we have achieved that proportion.
    • India’s aim is to increase this ratio to 20% originally by 2030 but in 2021, when NITI Aayog put out the ethanol roadmap, that deadline was advanced to 2025.

    Why need ethanol blending?

    • Ethanol blending will help bring down our share of oil imports (almost 85%) on which we spend a considerable amount of our precious foreign exchange.
    • Secondly, more ethanol output would help increase farmers’ incomes.
    • India’s net import of petroleum was 185 million tonnes at a cost of $55 billion in 2020-21.
    • A successful ethanol blending programme can save the country $4 billion per annum.

    What are first-generation and second-generation ethanols?

    • With an aim to augment ethanol supplies, the government has allowed procurement of ethanol produced from other sources besides molasses — which is first-generation ethanol or 1G.
    • Other than molasses, ethanol can be extracted from materials such as rice straw, wheat straw, corn cobs, corn stover, bagasse, bamboo and woody biomass, which are second-generation ethanol sources or 2G.
    • While inaugurating the Indian Oil Corporation’s (IOC) 2G ethanol plant last week, PM referred to not only the prospect of higher farmer income but also dwelt upon the advantages of farmers selling the residual stubble — left behind after rice is harvested — to help make biofuels.
    • This means lesser stubble burning and therefore, lesser air pollution.

    How have other countries fared?

    • Though the U.S., China, Canada and Brazil all have ethanol blending programmes, as a developing country, Brazil stands out.
    • It had legislated that the ethanol content in petrol should be in the 18-27.5% range, and it finally touched the 27% target in 2021.

    How does it impact the auto industry?

    • At the time of the NITI Aayog report in June last year, the industry had committed to the government to make all vehicles E20 material compliant by 2023.
    • This meant that the petrol points, plastics, rubber, steel and other components in vehicles would need to be compliant to hold/store fuel that is 20% ethanol.
    • Without such a change, rusting is an obvious impediment.

    Are there other alternatives?

    • Auto industry prefer the use of biofuels as the next step, compared to other options such as electric vehicles (EV), hydrogen power and compressed natural gas.
    • This is mainly because biofuels demand the least incremental investment for manufacturers.
    • Even though the industry is recovering from the economic losses bought on by the pandemic, it is bound to make some change to comply with India’s promise for net-zero emissions by 2070.

    What are the challenges before the industry when it comes to 20% ethanol blended fuel?

    • Key challenge is the optimisation of engines for higher ethanol blends and the conduct of durability studies on engines and field trials before introducing E20 compliant vehicles.
    • Storage is going to be the main concern, for if E10 supply has to continue in tandem with E20 supply, storage would have to be separate which then raises costs.

    Sources for ethanol in India

    The plan was to divert its excess sugar production to produce ethanol, 3.5 million tonnes in 2021-22 and 6 million tonnes the next year, in addition to grains like rice, corn, and barley.

    • Using surplus rice: The government’s food department revealed its plans to divert 17 million tonnes of surplus rice from its food stocks of 90 million tonnes to produce ethanol.
    • Sugarcane: This is in addition to the 2 million tonnes of sugar which is already being diverted to produce ethanol.

    How would this benefit the country?

    • Cost saving: A successful biofuels programme can save India $4 billion or about ₹30,000 crore every year by lowering import of petroleum products.
    • Emission cut: Ethanol is also less polluting and offers equivalent efficiency at a lower cost than petrol.
    • Biofuel’s policy boost: Rising production of grains and sugarcane and feasibility of making vehicles compliant to ethanol-blended fuel makes its biofuels policy a strategic requirement.
    • Early rollout: Towards this, govt has put in place interest subsidies for distilleries to expand capacity while auto firms have agreed to make compatible vehicles.

    What are the unintended effects of the policy?

    • Unsustainability of cash-crops: Increasing reliance on biofuels can push farmers to grow more water-intensive crops like sugarcane and rice.
    • Huge water requirement: Currently use 70% of the available irrigation water, negating some positive impact on the environment of using more ethanol.
    • Food and nutrition security: The move could impact India’s hunger situation by limiting the coverage of the food security schemes.
    • Food inflation: Diversion of mass consumption grains can also push food prices up.

    How will it impact crop diversification?

    • Monotonous crops: Although the biofuels policy stresses on using less water-consuming crops, farmers prefer to grow more sugarcane and rice due to price support schemes.
    • Water stress: Growing more of them can lead to an adverse impact in water-stressed areas in states.

    What about food security?

    • It is unethical to use edible grains to produce ethanol in a country where hunger is rampant.
    • India is already a poor performer in Global Hunger Index.
    • Although about 80 crore people are now receiving subsidized food grains, calculations show that over 10 crore eligible households are still excluded.

     

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