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  • Palli in Jammu becomes India’s First Carbon-Neutral Panchayat

    Palli village in Samba district of Jammu and Kashmir has become the first panchayat in the country to become carbon-neutral, fully powered by solar energy.

    Various feats achieved

    • All its records have been digitised and the benefits of all the Central schemes are available in this village around 17 km from Jammu.
    • Palli village, with its enthusiastic and dedicated elected representatives full of dreams, has shown how to implement the Glasgow pledge (Panchamrita) made by PM Modi.
    • It has set an example of the slogan Sabka Prayas (everyone’s efforts).

    What is Carbon Neutrality?

    • Carbon neutrality refers to achieving net-zero carbon dioxide emissions or buying enough carbon credits to make up the difference.
    • This can be done by balancing emissions of carbon dioxide with its removal (often through carbon offsetting) or by eliminating emissions from society.
    •  It is used in the context of carbon dioxide-releasing processes associated with transportation, energy production, agriculture, and industry.
    •  The term carbon neutral also includes other greenhouse gases, usually carbon-based, measured in terms of their carbon dioxide equivalence.
    • The term “net-zero” is increasingly used to describe a broader and more comprehensive commitment to decarbonization and climate action.
    • Net-zero emissions are achieved when your organization’s emissions of all greenhouse gases (CO2-e) are balanced by greenhouse gas removals

    Methodology

    Carbon-neutral status can be achieved in two ways:

    • Carbon offsetting: Balancing carbon dioxide emissions with carbon offsets — the process of reducing or avoiding greenhouse gas emissions or removing carbon dioxide from the atmosphere to make up for emissions elsewhere. If the total greenhouse gasses emitted is equal to the total amount avoided or removed, then the two effects cancel each other out and the net emissions are ‘neutral’.
    • Reducing emissions: Reducing carbon emissions can be done by moving towards energy sources and industrial processes that produce fewer greenhouse gases, thereby transitioning to a low-carbon economy. Shifting towards the use of renewable energy such as hydro, wind, geothermal, and solar power, as well as nuclear power, reduces greenhouse gas emissions.

    Agreement and Target

    • The Paris Agreement is a legally binding international treaty on climate change. It was adopted by 196 Parties at COP 21 in Paris, on 12 December 2015 and entered into force on 4 November 2016.
    • Its goal is to limit global warming to well below 2, preferably to 1.5 degrees Celsius, compared to pre-industrial levels.
    • Article 4.1 of the Paris Agreement asks countries to reach global peaking of greenhouse gas emissions as soon as possible.
    • It also requires countries to undertake rapid reductions in carbon emissions to achieve a balance between anthropogenic emissions by sources and removals by sinks of greenhouse gases.

    Back2Basics:  Panchamrita

    • ‘Panchamrita’ is a traditional method of mixing five natural foods — milk, ghee, curd, honey, and jaggery.
    • These are used in Hindu and Jain worship rituals. It is also used as a technique in Ayurveda.
    • The PM euphemistically termed his scheme as ‘Panchamrita’ meaning the ‘five ambrosia’.
    • Under Panchamrita’, India will:
    1. Get its non-fossil energy capacity to 500 gigawatts by 2030
    2. Meet 50 percent of its energy requirements till 2030 with renewable energy
    3. Reduce its projected carbon emission by one billion tonnes by 2030
    4. Reduce the carbon intensity of its economy by 45 percent by 2030
    5. Achieve net-zero by 2070

     

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  • What is different now in communal violence in India

    Context

    India has a long history of communal violence. Just how similar or different are the recent episodes? And what kind of dangers do they pose to the polity and society?

    What is different this time?

    • Religious processions: It should first be noted that such processions have historically been some of the largest triggers for communal riots.
    • Such processions can be, and have been, intensely political, often morphing from the religious to the communal.
    • Communalism Vs. Religiosity: Communalism in South Asia has always been distinguished from religiosity.
    • Religiosity may be about deeper meanings of life, but communalism is about a coercive assertion of power or a bloody search for retribution, often historically construed and presented.
    • Thus, it is not the coexistence of religious processions and riots that is surprising today.
    • What is different this time? Ram Navami and Hanuman Jayanti are not the principal religious processions touching off riots.
    • Eroding neutrality of state: The second difference that in the past, processions might have caused riots, but the state rarely gave up the principle of neutrality in dealing with them.
    • When a state either explicitly favours a community or looks away when a particular community is hounded, intimidated and attacked, it is no longer a riot, but a pogrom.
    • The rapidly eroding religious neutrality of the government in several states is one of the most alarming political developments.
    • In recent months, there have been spectacles of calls to murder in Dharam Sansads (religious assemblies).
    • Such speech is criminally liable. India’s Constitution prohibits speech that endangers “public order”.
    • In the past, it was invariably hard to find clear evidence of who led the riots.
    • The riot leaders now openly proclaim call for violence.
    • Such leaders are either not punished, or are merely given a slap on the wrist and some of them are even celebrated as heroes and rewarded with high office.
    • New research on vigilantism makes it clear that vigilantism, especially lynchings, cannot flourish unless the state provides impunity to vigilante groups.

    Conclusion

    Even though India has a long history of communal violence the recent episodes of violence are different and pose grave dangers to the polity and society.

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  • [Sansad TV] Mudda Aapka: India–Mauritius Relations

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    Context

    • Mauritius Prime Minister Pravind Kumar Jugnauth is on an eight-day visit to India.
    • The purpose of this visit is to further strengthen the relations between the two countries. Mauritius is becoming an integral part of the goals of India’s maritime diplomacy.
    • Mauritius is very important for India’s security from the point of view of the Indian Ocean and yet being highest FDI investor.

    As Mauritius becomes a key part of India’s renewed Ocean Diplomacy at a time when the world is changing in fundamental ways, what should be India’s approach to this island-nation?

    India-Mauritius Relations: A Backgrounder

    • Connections between India and Mauritius date back to 1730, diplomatic relations were established in 1948 before Mauritius became an independent state.
    • For far too long, Delhi has viewed Mauritius through the prism of diaspora. This was, perhaps, natural since 68% of the Mauritian population comprise of Indian origin.
    • More recently, Delhi has certainly begun to see the strategic significance of Mauritius thanks to the renewed great power contestation in the Indian Ocean.
    • In 2014, Prime Minister Modi saw Mauritius as part of India’s neighbourhood and invited its leaders to join his inauguration along with other South Asian leaders.
    • In 2015 that Modi unveiled an ambitious policy called the SAGAR (security and growth for all). It was India’s first significant policy statement on the Indian Ocean in many decades.

    Significance of Mauritius to India

    [A] Geostrategic significance

    • In 2015, the Indian Prime Minister signed an agreement to set up eight Indian-controlled coastal surveillance radar stations
    • Mauritius is part of India’s security grid including Coastal Surveillance Radar (CSR) station of Indian Navy’s National Command Control Communication Intelligence network.
    • The Head of Mauritius Navy and the Mauritian National Security Advisor are Indian officers.
    • India is also building a secret naval base in Agalega Islands of Mauritius.
    • If Delhi takes an integrated view of its security cooperation in the southwestern Indian Ocean, Mauritius is the natural node for it.

    [B] Economic opportunities

    • The Mauritius pivot can facilitate a number of Indian commercial activities in the southwestern Indian Ocean — as a banking gateway, the hub for flights to and from Indian cities and tourism.
    • India could also contribute to the evolution of Mauritius as a regional centre for technological innovation.
    • Companies registered in Mauritius are the largest source of foreign direct investment (FDI) into India.
    • Mauritius and India signed a Comprehensive Economic Cooperation and Partnership Agreement (CECPA) on 22 February 2021, during the visit of the External Affairs Minister Dr. Subrahmanyam Jaishankar.

    [C] Geo-economics

    • India is Mauritius’s largest trading partner and has been the largest exporter of goods and services to the Indian Ocean island nation since 2007.
    • The French description of the island as a “central geographic point” holds equally true for commerce and connectivity in the Indian Ocean.
    • As a member of the African Union, Indian Ocean Rim Association and the Indian Ocean Commission, Mauritius is a stepping stone to multiple geographies.
    • As new investments pour into Africa, Mauritius is where a lot of it gets serviced. Mauritius can be the fulcrum for India’s own African economic outreach.

    [D] Mauritius as pivot of New Delhi’s island policy

    • Until now India has tended to deal with the so-called Vanilla islands of the southwestern Indian Ocean — Comoros, Madagascar, Mauritius, Mayotte, Reunion and Seychelles — on a bilateral basis.
    • If the Indian establishment thinks of them as a collective, it could make Mauritius the pivot of Delhi’s island policy.

    [E] Indian Community

    • There are nearly 11,000 Indian nationals in Mauritius. There are around 750 OCI Card holders and about 3500 PIO Card holders.
    • To increase tourism inflow from India, Mauritian Government had introduced a visa-free regime for Indian tourists in October 2004.
    • Indian tourists visiting Mauritius for a period up to 60 days do not require a visa, provided they can show sufficient funds to cover their stay.
    • Mauritian nationals visiting India are entitled to gratis E-Tourist Visa.

    [F] Institutional collaboration

    • The Mahatma Gandhi Institute (MGI) was established in 1976 as a joint venture between the Government of India and the Government of Mauritius for the promotion of Indian culture and education. It also hosts the ICCR Chair in Sanskrit and Indian Philosophy.
    • The Rabindranath Tagore Institute (RTI) was established with the assistance of the Government of India in 2000 as a Centre of Studies on Indian culture and traditions.
    • Mauritius also hosts the World Hindi Secretariat, an India-Mauritius bilateral organization which was inaugurated during the visit of President in March 2018.  

    Common challenges

    • Some existential challenges for Mauritius and the neighbouring island states are:
    • Climate change
    • Sustainable development and
    • Blue economy
    • The impact of natural disasters, the degradation of coastal and marine ecosystems and sea level rise are their biggest security threats as these threaten their very existence.
    • According to a World Bank Report in 2018, Mauritius Ranks 16th highest disaster risk country, being highly vulnerable to the adverse effects of climate change.

    Why India needs to revamp its neighbourhood strategy?

    • Responsiveness against China: India has often been accused of being self-centred in its relations with its smaller neighbours, as well as being interested in them only when China becomes a big enough presence in these countries. This is not an unfair criticism.
    • IOR Strategy: As the power dynamic in the Indian Ocean Region (IOR) is changing, India has come to view Mauritius as an integral part of the new security architecture that it would like to see emerge here.
    • Security-centric: Mauritius is dotted with naval outfits, communication and surveillance outposts, and/or port facilities/developments, from Tanzania, Kenya, to Oman, Iran, Pakistan, Sri Lanka, Maldives, Bangladesh and Myanmar.
    • Multiple identities: Mauritius, much like India, sees itself in many dimensions. It sees itself as a sovereign nation, as a vibrant democracy; as multi-ethnic, multi-cultural and multi-religious nation too. It is important for India in its approach towards Mauritius to embrace its multitude of identities.

    Way forward

    • The urgent need for New Delhi is to discard the deep-rooted perception that Mauritius is simply an extension of India.
    • Delhi must take a fresh and more strategic look at Mauritius.
    • One way of getting there is to have an early Indian summit with the leaders of the Vanilla Islands.
    • India, with its strong intelligence network, will also be helpful in maritime law enforcement by Mauritius and Seychelles.
    • While declaring support for India’s maritime security plans, there is need to pointed out that small nations are equally important in the contemporary world order and need to be taken seriously for the sake of preserving the security and order.

    Conclusion

    • Our close multifaceted relations have steadily developed over the years, based on the secure foundations of kinship and family ties, and of shared values of democracy, tolerance, peace and development.
    • It is time that both nations take it forward with mutual cooperation.
    • Jugnauth’s visit is a good moment for India to visibly demonstrate its respect for the sovereignty of Mauritius.

  • Digital Service Tax

    Context

    Over the past four years, 137 countries have engaged intensively with the OECD to find a solution to the tax challenges arising from digitalisation. Like any international agreement, finding a middle ground has been difficult and a series of compromises have been made.

    What makes it difficult to tax the digital economy?

    • Operation across the border: The unique feature of the digital economy is that firms can operate seamlessly across borders and users and their data contribute to their profits.
    • However, this made it harder to tax such an economy.
    • It was not clear how profits were to be pinned down to any jurisdiction.
    • Political issues: Taxing digital economy became a political issue because the largest technology firms are tax residents of developed countries and redefining digital presence as the basis of taxation would potentially allow large markets like India more right to tax.
    • Developing vs. developed countries: Developing countries wanted that profits from digital operations should be fractionally apportioned to markets while developed countries believe that a fraction of residual profit, mainly arising from marketing functions, should be taxed in markets.

     Equalisation levy and DST issue

    • The divergence in developed and developing countries as explained above compelled countries to implement unilateral measures.
    • India was the first country to implement a gross equalisation levy on turnover.
    • This is not covered by tax treaties.
    • So, while the income tax act does not apply to the levy, credit is available for the tax paid by the company in its home country.
    • Similarly, several other countries have announced or implemented a digital services tax (DST).
    • In 2021, India expanded the scope of the equalisation levy.
    • The US initiated the US Trade Representative investigations which found DST to be discriminatory, and then announced retaliatory tariffs.

    Two-pillar approach and issues with its adoption

    • The DSTs encouraged the US to actively participate in finding a consensus-based solution.
    • As talks progressed, the OECD announced that the issue of allocation of taxing rights would be actively considered and adopted a two-pillar approach.
    • Pillar One approach: The first pillar was to define the rules for taxing digital companies.
    • Sovereignty issue: Pillar One was to go beyond digital companies and apply to large companies with annual revenue over € 20 billion. To ensure certainty to taxpayers, the solution will require excessive global coordination.
    • Whether this will undermine sovereignty, remains to be seen.
    • Therefore, it is important to consider if the consensus approach is worth pursuing.
    • EL may still apply to companies not covered by OECD proposal: In fact, the EL may apply to companies that are not covered by the OECD proposal, leaving one to wonder whether it will truly address the tax challenges from digitalisation. 
    • Complications: Corporations that argue in favour of simplicity must also consider the potential benefits from an EL like tax that sets aside the complications of attributing profits to complex functions.
    • The OECD approach creates a fiction of reallocation, where the profits reallocated through Pillar One could in fact be compensated for by taxing back global profits taxed below 15 per cent.

    Conclusion

    As per Pillar One proposal, DSTs will be removed once the OECD approach is ratified in 2023. It is imperative therefore that countries assess the price of compromise.

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  • NITI Aayog gets a new Vice-Chairman

    The government has appointed Suman K. Bery as the vice-chairman of the NITI Aayog following the resignation of Rajiv Kumar.

    What is NITI Aayog?

    • The NITI Aayog serves as the apex public policy think tank of the GoI.
    • It was established in 2015, by the NDA government, to replace the Planning Commission which followed a top-down model.
    • It advises both the centre and states on social and economic issues.
    • It is neither a constitutional body nor a statutory body but the outcome of an executive resolution. It was not created by the act of parliament.

    Composition of NITI Aayog

    • The Prime Minister of India is the chairperson/chairman of the NITI Aayog.
    • The PM appoints one Vice-Chairperson, who holds the rank of a cabinet minister.
    • It includes the Chief Ministers of all the states and Union territories.
    • It has Regional Councils for looking after contingencies in regional areas. It is convened and chaired by the Prime Minister of India and includes concerned chief ministers and Lt. Governors.
    • The Prime Minister nominates Personalities with skilled knowledge, who are experts in particular domains as special invitees.
    • There are full-time members who hold the rank of ministers.
    • There is a maximum of two Part-time members who are invited from leading organisations, universities, and research centres.
    • The Prime Minister also appoints one Chief Executive Officer (CEO) who holds the rank of a Secretary.

    Aims, Agenda, and Objectives of NITI Aayog

    The purpose with which NITI Aayog was formed in place of the Planning Commission was a far-sighted vision. It was important to boost the development of India in the emerging global scenario. The objectives are:

    • To generate a platform for national development, sectors and strategies with the collaboration of states and centre.
    • To boost the factor of cooperative federalism between the centre and the states. For national development, it is necessary for both wings to work in synergy.
    • To develop such mechanisms which work at the ground root level for progressive growth. A nation develops when its regions and states develop.
    • To work on long term policies and strategies for long-term development. To set up a system for monitoring progress so that it can be used for analysing and improving methods.
    • To provide a platform for resolving inter-departmental issues amicably.
    • To make it a platform where the programmes, strategies, and schemes can be monitored on a day to day basis, and it could be understood which sector needs more resources to develop.
    • To upgrade technological advancements in such a manner that focus can be made on iNITIatives and programmes.
    • To ensure India’s level and ranking at the worldwide level and to make India an actively participating nation.
    • To progress from food security towards nutrition and standardised meals and focus on agricultural production.
    • To make use of more technology to avoid misadventures and corruption in governance.
    • To make the working system more transparent and accountable.

    NITI Aayog – Seven Pillars of Effective Governance

    • NITI Aayog works on principles like Antyodaya (upliftment of poor), inclusion (to include all sections under one head), people participation, and so on.
    • NITI Aayog is a body that follows seven pillars of governance. They are:
    1. To look after pro-people agenda so that the aspirations and desires of no one are compromised.
    2. To respond and work on the needs of citizens.
    3. Make citizens of the nation involve and participate in various streams.
    4. To empower women in all fields, be it social, technical, economic, or other.
    5. To include all sects and classes under one head. To give special attention to marginalised and minority groups.
    6. To provide equal opportunity for the young generation.
    7. To make the working of government more accountable and transparent. It will ensure less chance of corruption and malpractices.

     

    Also read:

    [Burning Issue] Niti Ayog – A critical Analysis

     

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  • Postal ballot for NRIs being contemplated

    Chief Election Commissioner, during a recent visit to South Africa and Mauritius, urged Non-Resident Indians (NRIs) to register as overseas electors and told them that a proposal on postal ballots for NRIs was being contemplated by the Election Commission of India.

    Why in news now?

    • CECs interactions with NRIs came after Union Law Minister informed the Lok Sabha in March that the government was exploring the possibility of allowing online voting for NRIs.
    • The ECI had written to the Law Ministry in 2020 proposing that NRIs be allowed to vote through postal ballots, following which the matter has been under consideration by the government.
    • The ECI at present allows NRIs to register as overseas electors as long as they have not acquired the citizenship of another country.
    • They have to reach their respective polling booths to cast their votes in person on voting day.

    Classification of Overseas Indians

    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:

    (A) 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.

    (B) 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.

    (C) 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.

     

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  • UK to issue Open General Export Licence (OGEL) to India

    In the backdrop of the rapid geopolitical turmoil, PM Modi and his British counterpart Boris Johnson agreed on a new and expanded India-UK defence partnership and vowed to seal an ambitious free trade agreement by the end of the year.

    What is the news?

    • The UK is creating an Open General Export Licence (OGEL) for India to reduce bureaucracy and slashing delivery times for defence procurement.
    • It will partner with India on new fighter jet technology as well as in the maritime sphere to detect and respond to threats.

    What is OGEL?

    • The open General Licence is a type of license that is used for the export license that is issued by the government for domestic suppliers.
    • The items that are to be exported in India are categorised into three types. They are prohibited items, restricted items, and freely importable items. These classifications are made based on the nature and use of the products.
    • The application processing and grant of OEGL will be taken care of by the Department of Defence Production. The process will vary for each case.
    • The primary aim of the OEGL is to give a boost to the defence exports of India. This will also improve the ease of doing business and imports and exports.
    • The countries allowed under the OGELs are: Belgium, France, Germany, Japan, South Africa, Spain, Sweden, UK, USA, Canada, Italy, Poland and Mexico.

    Items to be exported

    • The items permitted under OGEL includes components of ammunition & fuse setting device without energetic and explosive material; firing control & related alerting and warning equipment & related system; and body protective items.
    • Complete aircraft or complete unmanned aerial vehicles (UAVs) and any components specially designed or modified for UAVs are excluded under this license.

     

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  • [Burning Issue] Care Economy

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    Context

    The importance of care work is now widely acknowledged and covered in various international commitments such as the SDGs. However, the investment in the care economy has not matched the pace.

    What is the care economy?

    • The care economy includes child care, elder care, and care for people who are ill or disabled and in need of assistance. That care is provided by home-based businesses, care centers, and individuals who work in the homes of those they care for.
    • The 2019 ILO report ‘A Quantum Leap for Gender Equality’ identified unpaid care work as the biggest impediment to women’s formal employment, as it engaged 21.7% of women between 18-54 years of age, as opposed to 1.7% of men.
    • A medium-term plan to increase public investment in care economy infrastructure offers India a credible instrument to meet multiple policy objectives.

    Care work and Care Economy

    A system that consists of activities and relationships involved in meeting the physical, emotional, and psychological aspects of care — remains an integral but undervalued component of economies all over the world, ensuring the welfare of communities. Care work can be direct or indirect, paid or unpaid, short-term (maternity needs) or long-term (care for the disabled and elderly).

    Why is there an increasing demand for care work?

    • Individualization– The trend towards a culture of individualization from collectivism will lead to a higher proportion of dependent people.
    • Demographic Transition-  The proportion of elderly people in the population is rising slowly.
    • Climate change- Climate change has caused water scarcity and rural food distress which increases care burden on women and children.
    • The ILO estimates that doubling investment in care relative to 2015 levels would generate 117 million additional jobs by 2030.
    • According to the International Trade Union Confederation (2019), an investment of 2% GDP in care in India would create 11 million jobs, of which 32.5% would be garnered by women.
    • The relational nature of care also implies that these jobs are less likely to be automated.

    What is the significance of the care economy?

    • Employment- An analysis by the Women’s Budget Group (2019) showed that if an additional 2% of the GDP was invested in the Indian health and care sector, 11 million additional jobs could be generated, nearly a third of which would go to women.
    • Greater investment in care services can create an additional 300 million jobs globally, many of which will be for women.
    • Development- This will help increase female labor force participation and advance Sustainable Development Goal (SDG) 8.
    • Lifting burden from women- A combination of childcare infrastructure and parental leave policies will offset the burden on women to facilitate higher maternal employment to population ratio.
    • Reducing Income inequalities- India’s average female daily wage was 59 % of the male wage in 1993-94 and improved to 72 %in 2018-19.
    • Gender-inclusive economic growth- Women’s unpaid work is valued at 3.1% of GDP in India. Recognizing AWWs, ANMs, ASHAs and domestic help (amongst others), as formal sector workers would allow their economic contribution to be counted in the GDP
    • Prevention of “occupational downgrading”- It will help women become less likely to end up with lower pay when looking for flexibility, or part-time roles owing to care work responsibilities.

    What is the status of care services?

    • Women’s unpaid work is valued at 3.1% of GDP in India.
    • In recent years, South Asian countries such as India and Bangladesh have begun investing in physical infrastructure which would improve the provision of care services indirectly.
    • India’s Economic Survey 2018-19 anticipates three major shifts in public policy, auguring increased attention to the care economy-
    • Declining working-age population- It has called for suitable regional policies to accommodate inter-State migrant labor, increasing the retirement age in a phased manner, and provisioning pensions and other types of retirement benefits.
    • Declining school-going population- It has shifted the focus of the National Education Policy 2019 on the merger and consolidation of existing elementary schools and emphasizes on quality of school education.
    • An increase in healthy life expectancy has also called attention to developing geriatric care in public health.
    • Maternity leave- India offers 26 weeks of maternity leave, against the ILO’s standard mandate of 14 weeks.
    • Child care- India has a long history of mandating the provision of creches in factories and establishments but there is limited information on its actual implementation.

    Gaps in the current policies?

    • Unorganized/ Informal sector- The maternity leave coverage extends to only a tiny proportion of women workers in formal employment in India, where 89% of employed women are in informal employment.
    • Paternity Leave- While increasingly being recognized as an enabler for better balance work and family responsibilities, it is not provided in many countries, including India.
    • Access to quality and affordable care- Quality Services such as childcare, elderly care and care for people with disabilities is a challenge workers with family responsibilities face globally.
    • Implementation gaps- While India has a long history of mandating the provision of crèches in factories and establishments, there is limited information on its actual implementation.
    • Domestic Workers- According to the Government’s 2019 estimates, 26 lakh of the 39 lakh domestic workers in India are female. They also face challenges in accessing decent work.

    Way Forward

    1. Comprehensive care policies– Policies that meet SDGs and can be rooted in ILO’s ‘Decent Work Agenda’ principles that begin with recognizing the value of unpaid care work, reducing the drudgery of work, redistributing responsibilities of care work between women and men, remunerating care workers, and representing their concerns.
    2. Strategic Action Plan- In consultation with the relevant stakeholders, the government needs to conceptualize a strategy and action plan for improved care policies, care service provisions and decent working conditions for care workers.
    3. Public good- Care work should be viewed as a collective responsibility and public good.
    4. Investment- Investing in a combination of childcare infrastructure and parental leave policies will have higher maternal employment to population ratio.
    5. Increase spending- India spends less than 1% of its GDP on the care economy; increasing this percentage would unfurl a plethora of benefits for workers and the overall economy.
    6. 5 R framework- The ILO proposes a 5R framework for decent care work centered around achieving gender equality. It urges on Recognition, Reduction of unpaid care work, Redistribution of unpaid care work, Rewarding care workers and decent work and Representation in social dialogue and collective bargaining.

    Conclusion

    Comprehensive care policies demand increased state involvement in investing, formalizing, and regulating the care economy. In addition to providing care benefits, national accounts should also be sensitive to the contribution of unpaid care to economic growth. Gender-sensitive budgeting, satellite accounts, and tax policy are some of the ways in which economic policy can acknowledge and reward care work. Finally, the state would be an important arbiter in engaging with care workers to realize and expand their rights

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  • New research about Jupiter’s moon Europa

    A team of researchers from Stanford University have said that on one of Jupiter’s moons Europa, a prime candidate for life in the solar system might have abundance of water pockets beneath formations called double ridges.

    About Europa

    • Europa is slightly smaller than Earth’s moon and its diameter is about one-quarter that of the Earth.
    • Even though Europa has a very thin oxygen atmosphere, it is considered one of the most promising places in the solar system to find present-day environments that are suitable for life beyond the Earth.
    • It is also believed that underneath Europa’s icy surface the amount of water is twice that on Earth.
    • NASA notes that scientists believe Europa’s ice shell is 15-25 km thick and is floating on an ocean, which is estimated to be 60-150 km deep.
    • Interestingly, while its diameter is less than the Earth’s, Europa probably contains twice the amount of the water in all of the Earth’s oceans.
    • NASA is expected to launch its Europa Clipper in 2024.
    • The module will orbit Jupiter and conduct multiple close flybys to Europa to gather data on the moon’s atmosphere, surface and its interior.

    What is the new finding?

    • It is already known that Europa, whose surface is mostly solid water ice, contains water beneath it.
    • The researchers are now saying that the double ridges – the formations which are most common on Europa’s surface and are similar to those seen on Earth’s Greenland ice sheet .
    • They are formed over shallow pockets of water.

    Significance of the recent findings

    • The central implication is that the shallow water pockets beneath the double ridge increase the potential habitability of the moon.
    • The ice shell, which is potentially miles thick, has been a difficult prospect for scientists to sample.
    • But according to the new evidence, the ice shell is believed to be less of a barrier and more of a dynamic system.
    • This means that the ice shell does not behave like an inert block of ice, but rather undergoes a variety of geological and hydrological processes.
    • This suggests active volcanism and thus a possibility for life.

     

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  • Freebies model of Governance

    Context

    Against the backdrop of promises of freebies in Punjab, this article deals with the harm caused by such freebies to the economy, life quality and social cohesion in the long run.

    Macroeconomic stability of the Union and the States

    • India is a Union of states. It is not a confederation of states.
    • The Union is indestructible.
    • The Union, therefore, is integral to both the Centre and the states.
    • The strength of the Centre lies in the strength of the states.
    • Therefore, the macroeconomic stability of the Union is contingent on the macroeconomic stability of both the Centre and states.

    The complex issue of freebies

    • There is great ambiguity in what “freebies” mean.
    • Merit goods Vs. Public goods: We need to distinguish between the concept of merit goods and public goods on which expenditure outlays have overall benefits.
    • Examples of this are the strengthening and deepening of the public distribution system, employment guarantee schemes, support to education and enhanced outlays for health, particularly during the pandemic.
    • All over the world, these are considered to be desirable expenditures.
    • Freebies could be expensive? It’s not about how cheap the freebies are but how expensive they are for the economy, life quality and social cohesion in the long run.

    Issues with the culture of competitive freebie politics

    1] It affects macroeconomic stability

    • Freebies undercut the basic framework of macroeconomic stability.
    • The politics of freebies distorts expenditure priorities.
    • Outlays are being concentrated on subsidies of one kind or the other.
    • Illustratively, in the case of Punjab, while estimates vary, some have speculated that the promise of freebies might cost around Rs 17,000 crore.
    • As we know, the debt-to-GDP ratio of Punjab is already at 53.3 per cent for 2021-22, which would worsen on account of these new measures.

    2] Distortion of expenditure priorities

    • Take, for instance, the change to the new contributory pension scheme from the old scheme, which had a fixed return.
    • Rajasthan announced that it would revert to the old pension scheme.
    • This decision is regressive as the move away from the old scheme was based on the fact that it was inherently inequitable.
    • The pension and salary revenues of Rajasthan amount to 56 per cent of its tax and non-tax revenues.
    • Thus, 6 per cent of the population, which is made up of civil servants, stands to benefit from 56 per cent of the state’s revenues.
    • Intergenerational inequality: This is fraught with dangers not only of intergenerational inequality, but also affects the broader principles of equity and morality.

    3] Increases social inequality

    • The issue of intergenerational equity leads to greater social inequalities because of expenditure priorities being distorted away from growth-enhancing items.

    4]  It affects the environment

    • When we talk of freebies, it is in the context of providing, for example, free power, or a certain quantum of free power, water and other kinds of consumption goods.
    • This distracts outlays from environmental and sustainable growth, renewable energy and more efficient public transport systems.

    5]  The distortion of agricultural priorities

    • The depleting supply of groundwater is an important issue to consider when speaking of freebies pertaining to free consumption goods and resources.

    6] Effect on the future of manufacturing

    • Lower the quality of competitiveness: Freebies lower the quality and competitiveness of the manufacturing sector by detracting from efficient and competitive infrastructure enabling high-factor efficiencies in the manufacturing sector.

    7] Subnational bankruptcy

    • Freebies bring into question market differentiation between profligate and non-profligate states and whether we can have a recourse mechanism for subnational bankruptcy.

    Way forward

    • The race to the bottom implies government deregulation of markets and business.
    • We must strive instead for a race to efficiency through laboratories of democracy and sanguine federalism where states use their authority to harness innovative ideas and solutions to common problems which other states can emulate.

    Consider the question “What are the challenges in dealing with the competitive freebies politics? What are its drawbacks?”

    Conclusion

    The economics of freebies is invariably wrong. It is a race to the bottom. Indeed, it is not the road to efficiency or prosperity, but a quick passport to fiscal disaster.

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