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  • Road Safety in India

    The United Nations is holding a high-level meeting on Global Road Safety on June 30 and July 1, 2022 to review the progress and challenges.

    Road Accidents in India: A lookover

    • In spite of several years of policymaking to improve road safety, India remains among the worst-performing countries in this area.
    • Total 1,47,913 lives lost to road traffic accidents in 2017 as per Ministry of Road Transport and Highways statistics.
    • The National Crime Records Bureau (NCRB) figure for the same year is 1,50,093 road accident deaths.

    Why in news?

    • The persistently high annual death toll brings into question the country’s ability to meet Sustainable Development Goal (SDG) 3.6.
    • This aims to halve the fatalities and injuries from road traffic accidents by 2030.

    Lancet’s findings on road safety

    • A new analytical series on road safety worldwide, published by The Lancet, proposes that India and other countries could cut accident-related deaths by 25 to 40%.
    • This is based on evidence that preventive interventions produce good outcomes when applied to four well-known risk factors:
    1. High speed
    2. Driving under the influence of alcohol
    3. Not using proper helmets
    4. Not wearing seat-belts and not using child restraints

    Issues highlighted in developing countries

    • The structural problems linked to unplanned motorisation and urbanisation remain.
    • In India, speedy highway construction takes place without reconciling fast and slow-moving traffic.
    • There is a rampant presence of ramshackle vehicles, wrong-side driving, absence of adequate traffic police forces etc.

    Why are there so many road fatalities in India alone?

    • Weak enforcement of traffic laws: People hardly oblige to traffic rules and find easier to bribe policemen rather than paying hefty challans.
    • Speeding issue: More accidents on the highways have been attributed to higher vehicle speeds and higher volume of traffic on these roads.
    • Engineering bottlenecks: Issues such as gaps in the median on the national highways, untreated intersections, and missing crash barriers are some of the biggest engineering issues.
    • Behavioural issue: Driver violations such as wrong-side driving, wrong lane usage by heavy vehicles, and mass violation of traffic lights, intoxication are the biggest behavioural issues.
    • Lack of Golden hour treatment: Lack of rapid trauma care on highways leads to such high fatalities.

    Various steps taken by India

    • India amended Motor Vehicles Act in 2019, but its implementation by State governments is not uniform or complete.
    • A National Road Safety Board was constituted under the Act, with advisory powers to reform safety.
    • The World Bank has approved a $250 million loan to support for India State Support Programme for Road Safety.

    Issues with implementation

    • The focus of State governments, however, remains conventional, with an emphasis on user behaviour (drivers and other road users), education and uneven enforcement.
    • Low emphasis is placed on structural change such as raising engineering standards for roads, signages, signals, training for scientific accident investigation, raising policing skills and fixing responsibility on government departments for design, creation and maintenance of road infrastructure.

    What can be done to cut death and injury rates?

    • The ambitious amendments to the Motor Vehicles Act in 2019 (MV Act) have not yielded significant results.
    • Major interventions in India, first suggested by the Sundar Committee (2007) and ordered by the Supreme Court in Rajasekaran vs Union of India have not made a dent in the problem.

    Key findings of Sundar Committee

    • The Sundar Committee pointed out that India lacked a technically competent investigation arm that could determine the cause of accidents.
    • There is little clarity on whether the States have formed such units to aid traffic investigation, or whether the insurance industry has pressed for these to accurately determine fault.
    • In the absence of scientific investigation, perceptions usually guide the fixing of liability.

    Solutions provided by the Lancet

    • The Lancet calculated that 17% of road traffic injury-related deaths could be avoided if trauma care facilities improved.
    • This is significant as several accidents take place in rural areas on highways, and victims are taken to poorly-equipped district hospitals or medical college hospitals.
    • While positive user behaviour — slower travel, wearing of helmets, seat belts and so on — could save thousands of lives.
    • In the short term, slowing down traffic, particularly near habitations, segregating slower vehicles, enforcing seat belt and helmet use and cracking down on drunken drivers could produce measurable gains.

    Imbibing road safety: Way forward

    • Road safety education
    • Better road design, maintenance and warning signage
    • Crackdown on driving under influence of alcohol and drugs
    • Strict enforcement of traffic rules
    • Encouraging better road behaviour
    • Ensuring road worthiness of a vehicle
    • Better first aid and paramedic care

    Do you know?

    The ‘golden hour’ has been defined as ‘the time period lasting one hour following a traumatic injury during which there is the highest likelihood of preventing death by providing prompt medical care.

     

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  • What is PSLV Orbital Experimental Module (POEM)?

    The ISRO has launched three Singaporean satellites in precise orbit through the PSLV Orbital Experimental Module or ‘POEM’.

    What is POEM?

    • The POEM is a platform that will help perform in-orbit experiments using the final, and otherwise discarded, stage of ISRO’s workhorse rocket, the Polar Satellite Launch Vehicle (PSLV).
    • The PSLV is a four-stage rocket where the first three spent stages fall back into the ocean, and the final stage (PS4) — after launching the satellite into orbit — ends up as space junk.
    • However, in PSLV-C53 mission, the spent final stage will be utilised as a “stabilised platform” to perform experiments.
    • POEM is carrying six payloads, including two from Indian space start-ups Digantara and Dhruva Space.

    Features of POEM

    • POEM has a dedicated Navigation Guidance and Control (NGC) system for attitude stabilisation, which stands for controlling the orientation of any aerospace vehicle within permitted limits.
    • The NGC will act as the platform’s brain to stabilize it with specified accuracy.
    • POEM will derive its power from solar panels mounted around the PS4 tank, and a Li-Ion battery.
    • It will navigate using four sun sensors, a magnetometer, gyros & NavIC.
    • It carries dedicated control thrusters using Helium gas storage. It is enabled with a telecomm and feature.

    Has ISRO repurposed and used PS4 rocket junk earlier?

    • The Indian space agency first demonstrated the capability of using PSLV-C44 as an orbital platform in 2019.
    • It injected Microsat-R and Kalamsat-V2 satellites into their designated orbits.
    • The fourth stage in that mission was kept alive as an orbital platform for space-based experiments.
    • While in that mission, the fourth stage had Li-Ion batteries, solar panels are an addition this time.
    • The latest repurposing and upgrade of the fourth stage of the PSLV rocket involves the stabilization of the orbital platform.

     

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  • How is Vice-President of India elected?

    The Election Commission has announced that the election to the post of the Vice-President (VP) will be held on August 6, as M. Venkaiah Naidu’s term was coming to an end on August 10.

    About Vice President of India

    • The VP is the deputy to the head of state of the Republic of India, the President of India.
    • His/her office is the second-highest constitutional office after the president and ranks second in the order of precedence and first in the line of succession to the presidency.
    • The vice president is also a member of the Parliament as the ex officio Chairman of the Rajya Sabha.

    Qualifications

    • As in the case of the president, to be qualified to be elected as vice president, a person must:
    1. Be a citizen of India
    2. Be at least 35 years of age
    3. Not hold any office of profit
    • Unlike in the case of the president, where a person must be qualified for election as a member of the Lok Sabha, the vice president must be qualified for election as a member of the Rajya Sabha.
    • This difference is because the vice president is to act as the ex officio Chairman of the Rajya Sabha.

    Roles and responsibilities

    • When a bill is introduced in the Rajya Sabha, the vice president decides whether it is a money bill or not.
    • If he is of the opinion that a bill introduced in the Rajya Sabha is a money bill, he shall refer it to the Speaker of the Lok Sabha.
    • The vice president also acts as the chancellor of the central universities of India.

    Election procedure

    • Article 66 of the Constitution of India states the manner of election of the vice president.
    • The vice president is elected indirectly by members of an electoral college consisting of the members of both Houses of Parliament and NOT the members of state legislative assembly.
    • The election is held as per the system of proportional representation using single transferable votes.
    • The voting is conducted by Election Commission of India via secret ballot.
    • The Electoral College for the poll will comprise 233 Rajya Sabha members, 12 nominated Rajya Sabha members and 543 Lok Sabha members.
    • The Lok Sabha Secretary-General would be appointed the Returning Officer.
    • Political parties CANNOT issue any whip to their MPs in the matter of voting in the Vice-Presidential election.

    Removal

    • The Constitution states that the vice president can be removed by a resolution of the Rajya Sabha passed by an Effective majority (majority of all the then members) and agreed by the Lok Sabha with a simple majority( Article 67(b)).
    • But no such resolution may be moved unless at least 14 days’ notice in advance has been given.
    • Notably, the Constitution does not list grounds for removal.
    • No Vice President has ever faced removal or the deputy chairman in the Rajya Sabha cannot be challenged in any court of law per Article 122.

     

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  • Govt. hikes GST for household items

    The Goods and Services Tax (GST) Council has decided to hike and lower GST on certain commodities.

    What is the news?

    • From July 18, tax hikes will kick in for over two dozen goods and services, ranging from unbranded food items, curd and buttermilk to low-cost hotels, cheques and maps.
    • Tax rates will be lowered for about half-a-dozen goods and services, including ropeways and truck rentals where fuel costs are included.
    • It scrapped GST for items imported by private vendors for use by defence forces.

    What is GST?

    • GST launched in India on 1 July 2017 is a comprehensive indirect tax for the entire country.
    • It is charged at the time of supply and depends on the destination of consumption.
    • For instance, if a good is manufactured in state A but consumed in state B, then the revenue generated through GST collection is credited to the state of consumption (state B) and not to the state of production (state A).
    • GST, being a consumption-based tax, resulted in loss of revenue for manufacturing-heavy states.

    What are GST Slabs?

    • In India, almost 500+ services and over 1300 products fall under the 4 major GST slabs.
    • There are five broad tax rates of zero, 5%, 12%, 18% and 28%, plus a cess levied over and above the 28% on some ‘sin’ goods.
    • The GST Council periodically revises the items under each slab rate to adjust them according to industry demands and market trends.
    • The updated structure ensures that the essential items fall under lower tax brackets, while luxury products and services entail higher GST rates.
    • The 28% rate is levied on demerit goods such as tobacco products, automobiles, and aerated drinks, along with an additional GST compensation cess.

    Why rationalize GST slabs?

    • From businesses’ viewpoint, there are just too many tax rate slabs, compounded by aberrations in the duty structure through their supply chains with some inputs are taxed more than the final product.
    • These are far too many rates and do not necessarily constitute a Good and Simple Tax.
    • Multiple rate changes since the introduction of the GST regime in July 2017 have brought the effective GST rate to 11.6% from the original revenue-neutral rate of 15.5%.
    • Merging the 12% and 18% GST rates into any tax rate lower than 18% may result in revenue loss.

    Haven’t GST revenues been hitting new records?

    • Yes, they have – GST revenues have scaled fresh highs in three of the first four months of 2022, going past ₹1.67 lakh crore in April.
    • But there is another key factor — the runaway pace of inflation.
    • Wholesale price inflation, which captures producers’ costs, has been over 10% for over a year and peaked at 15.1% in April.
    • Inflation faced by consumers on the ground has spiked to a near-eight year high of 7.8% in April.
    • The rise in prices was the single most important factor for higher tax inflows along with higher imports.

     

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  • CAPSTONE: NASA’s satellite, newly launched

    NASA has launched CAPSTONE, a microwave oven-sized CubeSat weighing just 55 pounds (25 kg).

    What is CAPSTONE?

    • CAPSTONE, short for Cislunar Autonomous Positioning System Technology Operations and Navigation Experiment, is designed to test a unique, elliptical lunar orbit.
    • It aims to help reduce risk for future spacecraft by validating innovative navigation technologies, and by verifying the dynamics of the halo-shaped orbit.

    Its launch

    • It is heading toward an orbit intended in the future for Gateway, a Moon-orbiting outpost that is part of NASA’s Artemis program.
    • The orbit is known as a near-rectilinear halo orbit (NRHO).
    • It is significantly elongated, and is located at a precise balance point in the gravities of Earth and the Moon.
    • This offers stability for long-term missions like Gateway, NASA said on its website.

    Mission details

    • CAPSTONE will enter NRHO, where it will fly within 1,600 km of the Moon’s North Pole on its near pass and 70,000 km from the South Pole at its farthest.
    • The spacecraft will repeat the cycle every six-and-a-half days and maintain this orbit for at least six months to study dynamics.

     

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  • G7

    Context

    The meeting of G7 leaders that concluded in Bavaria was attended by India as an observer.

    About G7

    • The G-7 or ‘Group of Seven’ includes Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States.
    • It is an intergovernmental organisation that was formed in 1975 by the top economies of the time as an informal forum to discuss pressing world issues.
    • Initially, it was formed as an effort by the US and its allies to discuss economic issues.
    • The G-7 forum now discusses several challenges such as oil prices and many pressing issues such as financial crises, terrorism, arms control, and drug trafficking.
    • It does not have a formal constitution or a fixed headquarters. The decisions taken by leaders during annual summits are non-binding.
    • Canada joined the group in 1976, and the European Union began attending in 1977.
    • The G7 is trying hard not to be yesterday’s club.
    • It is still a powerful grouping, with seven of its members in the top 10 economies of the world, three of them permanent members of the UNSC.

    Important outcomes of the G7 meeting

    • Statement on support for Ukraine: A standalone G7 Statement on Support for Ukraine was issued.
    • There was an unconditional commitment that the grouping will provide financial, humanitarian, military and diplomatic support and stand with Ukraine for as long as it takes.
    • Russia was also warned that any use of chemical, biological and nuclear weapons would be met with severe consequences.
    • Further intensification of sanctions against Russia was contemplated.
    • Tough language on China: Significantly, the G7 final communique has tough language on China as well.
    • It says there is no legal basis for China’s expansive maritime claims in the South China Sea, it calls on China to press Russia to withdraw troops from Ukraine and expresses grave concern about the country’s human rights situation.
    • It calls on China to respect universal human rights and fundamental freedoms in both Tibet and Xinjiang, highlighting the issue of forced labour in the latter.

    Significance of India’s observer status

    • The fact is that even the G7 knows its clout has declined compared to, say, 20 years ago.
    • That explains the move to invite key G20 countries as observers to its summits.
    • As for India, its importance lies in the undeniable truth that no global problem can be seriously tackled without New Delhi’s involvement.
    • For India, G7 summits have always been an invaluable opportunity to exchange views not just in a plurilateral format but also in the bilateral meetings on the margins of the main meetings.
    • 2 statements: India has lent its name to two statements issued by the G7. One is titled “Resilient Democracies Statement” and the other is “Joining Forces to Accelerate Clean and Just Transition towards Climate Neutrality”.
    • The first statement talks of democracies as reliable partners seeking to promote a rules-based international order and supporting democracy worldwide including through electoral assistance.
    • The other statement to which India is a signatory is the one on clean and just transition towards carbon neutrality.

    Conclusion

    India’s participation in this meeting as an observer serves to advance its foreign and security policy objectives and will keep it in good stead when it assumes the G20 presidency in December.

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  • China’s interventions in the Horn of Africa

    China recently held the first China-Horn of Africa Peace, Governance and Development Conference.

    Why in news?

    • China has been investing across the African continent throughout the last decade.
    • The conference held in Ethiopia witnessed the participation of foreign ministries from the following countries of the Horn: Kenya, Djibouti, Ethiopia, Sudan, Somalia, South Sudan, and Uganda.

    Major objectives

    • No doubt that china predates small nations with debt-trapping the countries.
    • It focuses on increasing the infrastructural investments in African countries and converting them to security assets.
    • It asserted three objectives in Africa:
    1. Controlling the pandemic
    2. Implementing a Forum on China-Africa Cooperation (FOCAC) outcomes, and
    3. Upholding common interests while fighting hegemonic politics

    What is FOCAC?

    • The FOCAC promotes China’s role in the infrastructural and societal development of the Horn.
    • In the 2021 forum, the entire region of the Horn participated and four resolutions were adopted:
    1. Dakar Action Plan
    2. China-Africa Cooperation Vision 2035
    3. Sino-African Declaration on Climate Change
    4. Declaration of the Eighth Ministerial Conference of FOCAC

    How has China garnered goodwill in HOA?

    • HOA have benefited from China’s vaccine diplomacy.
    • Beijing has also initiated the “2035 vision for China-Africa cooperation”; it aims to transform the health sector, alleviate poverty, promote trade and investments, and expand digital innovation.
    • The vision also focuses on green development, capacity building, improving people-to-people exchanges and facilitating peace and security in the continent.

    What are China’s primary interests/investments in the Horn of Africa?

    China’s interests are related to four major areas: infrastructural projects, financial assistance, natural resources and maritime interests.

    (1) Infrastructure

    • Looking at Chinese investments in infrastructure, one of its landmark projects was fully funding the $200 million African Union headquarters in Addis Ababa.
    • It has also made significant investments in railways; it is building the Addis-Djibouti railway line connecting the land-locked country with Eritrean ports in the Red Sea.
    • China has also invested in the Mombasa-Nairobi rail link in Kenya, and has already delivered on railway projects in Sudan.
    • It also has a viable military hardware market in Ethiopia and has built over 80 infrastructural projects in Somalia, including hospitals, roads, schools and stadiums.

    (2) Debts and ‘assistances’

    • With respect to financial assistance, Ethiopia, is one of the top five African recipients of Chinese investments, and also has a debt of almost $14 billion.
    • China accounts for 67% of Kenya’s bilateral debt.
    • In 2022, China promised to provide $15.7 million assistance to Eritrea.

    (3) Mineral explorations

    • The third major Chinese interest in Africa is the presence of natural resources — oil and coal. Beijing has invested $400 million in Mombasa’s oil terminal.
    • China is also interested in minerals such as gold, iron-ore, precious stones, chemicals, oil and natural gas in Ethiopia.
    • South Sudan, a source for petroleum products, has had continued Beijing investment in the industry since the latter’s initial entry in 1995.

    (4) Maritime interest

    • China’s first and only military base outside its mainland is in Djibouti.
    • During his visit in early 2022, Wang hinted at China’s willingness to develop Eritrea’s coast which would connect to China’s investments in land-locked Ethiopia.
    • The US has speculated that China wishes to build another military base in Kenya and Tanzania, thereby increasing its military presence in the region.

    Has the Horn of Africa been welcoming of China’s presence?

    • Africa has been keen on interacting with China.
    • Despite the wariness surrounding China’s projects in Africa, the governments have mostly been welcoming.
    • When conflict broke out in Tigray in November 2020, Addis Ababa appreciated Beijing for respecting Ethiopia’s sovereignty.
    • In December 2021, Kenya defended Chinese projects in the country; President Uhuru Kenyatta maintained that China-Africa partnership was mutually beneficial.
    • Similarly, in May 2022, the East African Community (EAC) welcomed Chinese investors to work in East Africa for the prosperity of the people.

    Beijing’s principle of non-intervention

    • Peace and stability is a mutual requirements for China and Africa.
    • For Africa, Chinese investments could lead to stable environments which could help the countries achieve their peace and development objectives.
    • For China, conflict in the region comes at a heavy cost.
    • In Ethiopia. when the conflict broke out, over 600 Chinese nationals, working on different projects, were evacuated, putting several investments at risk.
    • From a trading perspective, the region plays a significant role in achieving the objectives of the China-Africa Cooperation Vision 2035.

    Why is HOA important?

    • In the last decade, the region lying between Suez Canal and the Seychelles has emerged as a new geopolitical hotspot.
    • It has factors like impressive economic growth of regional countries, emergence of new security threats, and the ensuing major power rivalry driving the strategic trajectory of the region.
    • The straits of Bab el-Mandeb, which lies at the heart of this region, connects the energy-rich Middle East to Europe and, along with the Suez Canal, is considered a jugular vein for global trade.

    Indian footprints in the region

    • India has been paying greater attention to the region but still lags behind China.
    • India has bolstered defence cooperation with Oman and France (which holds territories in the Southwestern Indian Ocean).
    • It has signed logistics support agreements with these countries to ensure greater naval access in the region.
    • Reportedly, India was in talks with Japan to grant access to Indian naval vessels at the Japanese base in Djibouti.
    • India has also sought to open a military base in the Seychelles and plans to further enhance its naval presence in the Western Indian Ocean.

    These efforts are directed to increase Indian leverage and limit Chinese influence in the region.

    Lessons for India

    • China’s move towards peace in Africa indicates a shift in its principle of non-intervention.
    • It is China’s message that its presence in the continent has a larger objective and is not likely to be limited to the Horn of Africa.
    • This includes an aim to project itself as a global leader and boost its international status.
    • Further, the recent developments imply that China is focussing on a multifaceted growth in the continent for the long run.

     

     

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  • PM visits United Arab Emirates (UAE)

    PM Modi expressed gratitude to President of the United Arab Emirates Sheikh Mohamed bin Zayed (MBZ) al Nahyan for taking great care of 3.5 million Indian community in the UAE during the pandemic.

    India- UAE Relations: A backgrounder

    • The relation has greatly flourished especially after the accession of H. H. Sheikh Zayed Bin Sultan Al Nahyan, as the ruler of Abu Dhabi in 1966.
    • The greater push has been achieved in bilateral relations when the visit of Indian PM’s to the UAE in August 2015.
    • It marked the beginning of a new strategic partnership between the two countries.
    • Further, the Crown Prince was invited in January 2017 as the chief guest at India’s Republic Day celebrations.
    • In 2017 the two sides signed the agreement on Comprehensive Strategic Partnership (CSP).

    Significance of ties

    • Indian Diaspora in UAE: Around 3 million Indians are living harmoniously in the UAE.
    • UAE – A willing partner: As India seeks to enhance economic engagement and deepen security cooperation with the Gulf, it finds a willing partner in the UAE.
    • India being a natural partner: UAE’s ‘Look East’ find partners for its economic growth and with security concerns emanating from turmoil in West Asia and growing threat from terrorism.
    • Investments: UAE has a special place due to its business-friendly atmosphere, willingness to invest in the Indian economy.
    • India’s West Asia policy: The UAE occupies a key place in India’s West Asia policy. The high-level visit from both sides has given a new impetus to this partnership.

    Why UAE is tilting toward India?

    • Turmoil in West Asia: Geopolitical conditions as Iran is threatening continuously to close the Strait of Hormuz in case there is a conflict with Saudi Arabia or US.
    • Disappointment from Pakistan: UAE saw Pakistan as a partner and incorporated a deep economic and security relationship with it. But in the present day, Pakistan does not seem to be of much help to UAE.
    • India as a market: India is an important destination for oil and energy purchase. UAE also recognizes exhaustible nature of its fossil fuel reserves.
    • Returns on investment: UAE’s massive sovereign wealth funds can act as a great resource in the development of infrastructure in India.
    • Addressing Terrorism: There has been a rising convergence between India and UAE on the terror issue and both the countries talked of the need to combat terror groups without any discrimination.
    • Lack of regional consensus: Countries like Syria, Iraq, Libya and Yemen are suffering from violent conflicts. The Gulf Cooperation Council (GCC) has not produced expected results.

    Economic Significance of the UAE

    • UAE, due to its strategic location, has emerged as an important economic centre in the world.
    • In recent years, the UAE, through its ‘Vision 2021’, has sought to diversify its economy and reduce its dependency on oil.
    • Although the UAE has diversified its economy, the hydrocarbon sector remains very important followed by services and manufacturing.
    • Within services, financial services, wholesale and retail trade, and real estate and business services are the main contributors.

    India-UAE trade and investment ties

    • India is UAE’s third largest trade partner after China and the United States.
    • The UAE accounts for 8 percent of India’s oil imports and was fifth largest supplier of crude oil to India.
    • The aim is to boost bilateral merchandise trade to above U.S.$100 billion and services trade to U.S.$15 billion in five years.
    • As we are witnessing a big turnaround in manufacturing, the UAE would be an attractive export market for Indian electronics, automobiles, and other engineering products.
    • The UAE’s investment in India is estimated to be around U.S.$11.67 billion, which makes it the ninth biggest investor in India.

    Advanced technology and the knowledge economy

    (1) Technology

    • In 2018, India and UAE signed a MoU to generate an estimated $20 billion in the span of a decade.
    • The Emirates have stepped up efforts to invest in the development of the knowledge economy by expanding the “golden visa”.
    • Space is a new arena in which India and the UAE have collaborated through the work of the UAE Space Agency (UAESA) and the Indian Space Research Organization (ISRO).
    • Space cooperation between India and the UAE gained quick momentum during PM Modi’s visit to the Emirates in 2015.
    • The two countries are likely to work together on Emirates’ ‘Red planet Mission’.

    (2) Security and Defence Cooperation

    • Another significant pillar of India-UAE ties is reflected in their growing cooperation in security and defense sector.
    • With the spread of radicalism in Gulf and South Asia, India looks to enhance security cooperation with UAE to counter terrorist threats and combat radicalization.
    • ‘Desert Eagle II’, a ten day air combat exercise, was held between the air forces of India and UAE.

    Way Forward

    (1) Needs to ensure the execution of the investment projects with the required expertise

    • Potential areas to enhance bilateral trade include defence trade, food and agricultural products as well as automobiles.
    • Indian companies with expertise in renewable energy sector can invest in UAE.
    • In defence sector, there is a need to further enhance cooperation through joint training programmes.

    (2) Manifold Benefits of India-UAE Trade Agreements

    • With India’s newfound strength in exports, a trade agreement with an important country such as the UAE would help sustain the growth momentum.
    • As we are witnessing a big turnaround in manufacturing, the UAE would be an attractive export market for Indian electronics, automobiles, and other engineering products.

    (3) Improving the relations with the GCC

    • As part of the GCC, the UAE has strong economic ties with Saudi Arabia, Kuwait, Bahrain, and Oman and shares a common market and customs union with these nations.
    • This FTA with the UAE will pave the way for India to enter the UAE’s strategic location, and have relatively easy access to the Africa market and its various trade partners.
    • This can help India to become a part of that supply chain especially in handlooms, handicrafts, textiles and pharma.

    (4) Solving the issue of UAE’s Non-Tariff Barriers (NTBs)

    • The UAE tariff structure is bound with the GCC (applied average tariff rate is 5%), therefore, the scope of addressing Non-Tariff Barriers (NTBs) becomes very important.
    • The reflection of NTBs can be seen through Non-Tariff Measures (NTMs) mostly covered by Sanitary and Phytosanitary (SPS) and Technical Barriers to Trade (TBT).

     

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  • What is the GST Council, what does it do?

    The 47th meeting of the Goods and Services Tax Council began in Chandigarh, almost marking five years of the tax system coming into effect on July 1, 2017.

    What is the GST Council?

    • The GST regime came into force after the Constitutional (122nd Amendment) Bill was passed by both Houses of Parliament in 2016.
    • More than 15 Indian states then ratified it in their state Assemblies, after which the President gave his assent.
    • The GST Council – a joint forum of the Centre and the states — was set up by the President as per Article 279A (1) of the amended Constitution.
    • The members of the Council include the Union Finance Minister (chairperson), the Union Minister of State (Finance) from the Centre.
    • Each state can nominate a minister in-charge of finance or taxation or any other minister as a member.

    Why was the Council set up?

    • The Council, according to Article 279, is meant to “make recommendations to the Union and the states on important issues related to GST, like the goods and services that may be subjected or exempted from GST, model GST Laws”.
    • It also decides on various rate slabs of GST.
    • For instance, an interim report by a panel of ministers has suggested imposing 28 per cent GST on casinos, online gaming and horse racing.
    • A decision on this will be taken at the Council meeting.

    What has changed this time?

    • The ongoing meeting is the first since a decision of the Supreme Court in May this year, which stated recommendations of the GST Council are not binding.
    • The court said Article 246A of the Constitution gives both Parliament and state legislatures “simultaneous” power to legislate on GST .
    • Recommendations of the Council are the product of a collaborative dialogue involving the Union and States.
    • This was hailed by some states, such as Kerala and Tamil Nadu, who believe states can be more flexible in accepting the recommendations as suited to them.

    Agenda in this meet

    • The council’s meeting is also likely to focus on the issue of extension of the GST compensation regime beyond June 2022.
    • This was a special mechanism by which states were assured that their revenues would not be affected by the new GST system.
    • Some states are already demanding that the compensation be continued.
    • Earlier, the Council had agreed to extend the levy of compensation cess till 2026, but only for repayment of the borrowings made in the aftermath of the pandemic to provide compensation to states.

     

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  • Commonwealth adopts ‘Living Lands Charter’

    All 54 Commonwealth members have agreed to voluntarily dedicate a ‘living land’ in their respective countries to future generations, in line with the strategy set for the UN Decade on Ecosystem Restoration.

    Living Lands Charter

    • The non-binding mandates that member countries will safeguard global land resources and arrest land degradation while acting against climate change, biodiversity loss and sustainable management.
    • It helps to encapsulate the combined effort to hold the global average temperature increase to 1.5 degrees Celsius, said Commonwealth Secretary-General Patricia Scotland.
    • The document came after nearly two years of intense consultation, engagement and negotiation with member countries at UN Rio Convention.

    Key objectives

    • Leaders and their representatives noted with concern in the charter the alarming decline in the health and productivity of global land resources.
    • It aimed to support member countries to effectively deliver their commitments under the three Rio conventions:
    1. UN Convention on Biological Diversity
    2. UN Convention to Combat Desertification (UNCCD)
    3. UN Framework Convention on Climate Change

    Major outcomes

    • The attendees also underlined the principle of “critical guardianship” provided by indigenous peoples and local communities in protecting land and vital ecosystem services.
    • The agreement was released along with a final wide-ranging communiqué by leaders, including on specific items on climate change.
    • Country heads underscored in it that the “urgent threat of climate change” exacerbates existing vulnerabilities and presents a significant threat to COVID-19 recovery efforts.

     

    Try this PYQ from CSP 2012:

    Q.Consider the following statements:

    1. The Commonwealth has no charter, treaty or constitution
    2. All the territories/countries once under the British Empire (jurisdiction/rule/mandate) automatically joined the Commonwealth as its members

    Which of the statements given above is/are correct?

    (a) 1 only

    (b) 2 only

    (c) Both 1 and 2

    (d) Neither 1 nor 2

     

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    Back2Basics: Commonwealth of Nations

    • The Commonwealth of Nations is an intergovernmental organisation of 53 member states that are mostly former territories of the British Empire.
    • It dates back to the first half of the 20th century with the decolonization of the British Empire through increased self-governance of its territories.
    • It was originally created as the British Commonwealth of Nation through the Balfour Declaration at the 1926 Imperial Conference, and formalized by the UK through the Statute of Westminster in 1931.
    • The current body was formally constituted by the London Declaration in 1949, which modernized the community, and established the member states as “free and equal”.
    • The symbol of this free association is Queen Elizabeth II, who is the Head of the Commonwealth.
    • The Queen is head of state of 16 member states, known as the Commonwealth realms, while 32 other members are republics and five others have different monarchs.
    • Member has no legal obligations to one another. Instead, they are united by language, history, culture and their shared values of democracy, human rights and the rule of law.

     

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