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Distribution: weekly

  • Back in news: Visva-Bharati University

    The stalemate continues in Visva-Bharati University as students demand the reopening of hostels and conducting of online examinations.

    Visva-Bharati

    • Visva-Bharati is a central research university and an Institution of National Importance located in Shantiniketan, West Bengal, India.
    • It was founded by Rabindranath Tagore who called it Visva-Bharati, which means the communion of the world with India.
    • Until independence, it was a college.
    • Soon after independence, the institution was given the status of a central university in 1951 by an act of the Parliament.

    Its establishment

    • The origins of the institution date back to 1863 when Debendranath Tagore was given a tract of land by the zamindar of Raipur, zamindar of Kirnahar.
    • He set up an ashram at the spot that has now come to be called chatim tala at the heart of the town.
    • The ashram was initially called Brahmacharya Ashram, which was later renamed Brahmacharya Vidyalaya.
    • It was established with a view to encouraging people from all walks of life to come to the spot and meditate.
    • In 1901 his youngest son Rabindranath Tagore established a co-educational school inside the premises of the ashram.
    • From 1901 onwards, Tagore used the ashram to organize the Hindu Mela, which soon became a center of nationalist activity.

    Try this PYQ from CSP 2021:

    Q. With reference to Madanapalle of Andhra Pradesh, which one of the following statements is correct?

    (a) Pingali Venkayya designed the tricolour Indian National Flag here.

    (b) Pattabhi Sitaramaiah led the Quit India Movement of Andhra region from here.

    (c) Rabindranath Tagore translated the National Anthem from Bengali to English here.

    (d) Madame Blavatsky and Colonel Olcott set up headquarters of Theosophical Society fi rst here.

     

     

    [wpdiscuz-feedback id=”2igxgiemsy” question=”Please leave a feedback on this” opened=”1″]Post your answers here.[/wpdiscuz-feedback]

     

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  • GST revenues cross 1.3 lakh crore in Feb

    The Gross Goods and Services Tax (GST) revenue in February was 26% higher than the pre-pandemic levels at ₹1,33,026 crore.

    What is GST?

    • GST is an indirect tax that has replaced many indirect taxes in India such as excise duty, VAT, services tax, etc.
    • The Goods and Service Tax Act was passed in Parliament on 29th March 2017 and came into effect on 1st July 2017. It is a single domestic indirect tax law for the entire country.
    • It is a comprehensive, multi-stage, destination-based tax that is levied on every value addition.
    • Under the GST regime, the tax is levied at every point of sale. In the case of intra-state sales, Central GST and State GST are charged. All the inter-state sales are chargeable to the Integrated GST.

    Answer this PYQ in the comment box:

    Q.All revenues received by the Union. Government by way of taxes and other receipts for the conduct of Government business are credited to the (CSP 2015):

    (a) Contingency Fund of India

    (b) Public Account

    (c) Consolidated Fund of India

    (d) Deposits and Advances Fund

     

    [wpdiscuz-feedback id=”91v2rbtz17″ question=”Please leave a feedback on this” opened=”1″]Post your answers here.[/wpdiscuz-feedback]

    What are the components of GST?

    There are three taxes applicable under this system:

    1. CGST: It is the tax collected by the Central Government on an intra-state sale (e.g., a transaction happening within Maharashtra)
    2. SGST: It is the tax collected by the state government on an intra-state sale (e.g., a transaction happening within Maharashtra)
    3. IGST: It is a tax collected by the Central Government for an inter-state sale (e.g., Maharashtra to Tamil Nadu)

    Advantages Of GST

    • GST has mainly removed the cascading effect on the sale of goods and services.
    • Removal of the cascading effect has impacted the cost of goods.
    • Since the GST regime eliminates the tax on tax, the cost of goods decreases.
    • Also, GST is mainly technologically driven.
    • All the activities like registration, return filing, application for refund and response to notice needs to be done online on the GST portal, which accelerates the processes.

    Issues with GST

    • High operational cost
    • GST has given rise to complexity for many business owners across the nation.
    • GST has received criticism for being called a ‘Disability Tax’ as it now taxes articles such as braille paper, wheelchairs, hearing aid etc.
    • Petrol is not under GST, which goes against the ideals of the unification of commodities.

    Take a look at the share of GST in government earnings for the previous fiscal:

    UPSC can ask about the majority component of the Revenue Receipts of the govt. See how Corporate tax is nearing the GST revenues.

    Do you think it will surpass GST revenue when the economy is fully recovered?

     

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  • Kuki Insurgency in Manipur

    Just before the first of the two phases of the Assembly Elections went underway in Manipur, all insurgent groups associated with the Kuki tribes in Manipur said they will vote for a particular political party.

    Who are the Kukis?

    • The Kukis are an ethnic group including multiple tribes originally inhabiting the North-Eastern states of India such as Manipur, Mizoram and Assam; parts of Burma (now Myanmar), and Sylhet district and Chittagong hill tracts of Bangladesh.
    • While Kuki is not a term coined by the ethnic group itself, the tribes associated with it came to be generically called Kuki under colonial rule.
    • In Manipur, the various Kuki tribes, living mainly in the hills, currently make up 30% of the total 28.5 lakh population of the State.
    • While Churachandpur is their main stronghold, they also have a sizable population in Chandel, Kangpokpi, Tengnoupal and Senapati districts.

    Their ethnicity

    • The rest of the population of Manipur is made up mainly of two other ethnic groups — the Meiteis or non-tribal, Vaishnavite Hindus who live in the valley region of Manipur, and the Naga tribes, historically at loggerheads with the Kukis, also living in the hilly areas of the State.
    • Of the 60 seats in the Manipur Assembly, 40 are held by Meiteis and the rest 20 seats are held by Kukis and Nagas.

    What led to the Kuki insurgencies in Manipur?

    • The Kuki insurgent groups have been under Suspension of Operation (SoO) since 2005, when they signed an agreement for the same with the Indian Army.
    • Later, in 2008, the groups entered a tripartite agreement with the State government and the UPA led Central government to temporarily suspend their operations and give political dialogue a chance.
    • Manipur, formerly a princely state including parts of Burma, made the accession into India after Independence, but was only made a full-fledged State in 1972.
    • The resentment over the “forceful” inclusion into India and delay in granting statehood led to the rise of various insurgent movements.

    Roots of the insurgency

    • The roots of Kuki militancy lie in conflicts of ethnic identity.
    • First was the demand for self-determination solely for groups belonging to their ethnic fabric, meaning the dream to form a Kukiland.
    • The second reason for insurgency lies in the inter-community conflicts between the Kukis and the Nagas in Manipur.
    • The Kuki-Naga conflict was started over securing identity and land as some Kuki inhabited areas coincided with Naga inhabited areas.
    • Wanting to dominate trade and cultural activities in those areas the two communities often engaged in violent standoffs, with villages being torched, civilians killed and so on.

     

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  • [Yojana Archive] Swadeshi Entrepreneurship

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    Inception of the idea

    • The idea of ‘economic swadeshi’ emerged by the second half of the 19th century.
    • Thanks to the writings of R C Dutt, Dadabhai Naoroji, and M G Ranade, the new western-educated middle class was well aware of the colonial economic exploitation.
    • Gopal Hari Deshmukh was one of the firsts to advocate economic swadeshi in 1849.
    • But the credit for translating it to a call to action goes to the ‘college faction’ of the Arya Samajists in Punjab.

    Pre-Swadeshi movement

    • A group of middle-class, western-educated Punjabis– prominent among them were Lala Lajpat  Rai, Lala Harkishan Lal, and Sir Dayal Singh Majithia came together to found the Punjab National Bank (1894). This was the first major Indian-owned bank.
    • Lala Harkishan Lal, who soon emerged as the moving force behind this venture, went on to found a series of joint-stock companies.
    • In Bombay, a Parsi lawyer Ardeshir Burjorji Sorabji Godrej (1868-1936) came to realise the importance of indigenous manufacturing. After failing in a series of ventures, he tasted business success with mechanised locks and founded Godrej & Boyce in 1897.
    • Acharya Prafulla Chandra Ray (1861-1944), a pioneering chemist, founder of Bengal Chemicals (India’s first pharmaceuticals company), and a devoted nationalist spent his entire life in promoting education and scientific research.

    Swadeshi Enterprises

    The announcement of the Partition of Bengal (1905) unleashed a surge of nationalism and rekindled the Bengali entrepreneurial spirit.

    (1) Textiles

    • Bengal’s leading landlords, businessmen, and political leaders came together to launch the most high-profile swadeshi venture – Banga Luxmi Cotton Mill (1906).
    • Two years later, Mohinimohan Chakraborti, landlord and retired Deputy Magistrate, launched a smaller Mohini Mill in East Bengal to challenge the monopoly of the only British cotton mill in Bengal.
    • The biggest beneficiary of the boycott of Manchester cloths turned out to be Bombay and Ahmedabad, where 39 mills came up between 1904 and 1910 to cater to swadeshi demands.

    (2) Promotion on Science and Tech

    • One of the great contributions of the swadeshi period was the promotion of science. Meritorious students were sent to Japan, Germany, and the USA for technical education.
    • Some of them came back to set up successful businesses like Calcutta Chemicals, Calcutta Potteries, and Bengal Waterproof.
    • The National Education Movement (1905-1938) helped set up colleges and schools, and one of the institutions associated with it metamorphosed into Jadavpur University.
    • In Madras, firebrand nationalist leader V O Chidambaram Pillai launched his Swadeshi Steam  Navigation Company from Tuticorin (1906), to challenge the British monopolies but had a short life.

    (3) Emergence of modern banking

    • Indian Bank: In Madras, a group of eminent citizens and businessmen came together under the leadership of a lawyer (later on, High Court judge), V Krishnaswamy Iyer, to set up the Indian Bank in 1907.
    • Canara Bank: Among the other smaller ventures in the Madras Presidency were the Canara Banking Corporation of Udupi (later Corporation Bank) and the Canara Hindu Permanent Fund (later Canara Bank).
    • Central Bank of India: Similar groups in Bombay founded two major banks – the Bank of India (1907) and the Central Bank of India (1911, the first Chairman was Sir Pherozeshah Mehta).
    • Bank of Baroda: In Baroda, Maharaja Sayajirao II led the way to set up the first major bank in a princely state – Bank of Baroda (1908). 
    • Punjab and Sindh Bank: Business elites in Punjab set up the Punjab and Sind Bank in the same year.

    Swadeshi and decline of consumerism

    • Boycott of foreign goods and the use of India-made products– the trend that started in Bengal in  1905, spread to the rest of the country with Mahatma Gandhi and his advocacy of khadi.
    • With rising nationalism, there was a definite change in consumer culture too.
    • Irrespective of whether they were actively participating in political movements or not, people wanted to use India-made/local products as a badge of their patriotism.

    Establishment of National Planning Commission

    • In 1938, Congress President Subhas Chandra Bose set up a National Planning Commission under the chairmanship of Jawaharlal Nehru.
    • This Commission had prominent industrialists  like Purushottamdas Thakurdas, Walchand Hirachand, A D Shroff, and Ambalal Sarabhai as  members, along with technocrat M Visvesvaraya and scientist Meghnad Saha.
    • In 1944-45, eight leading industrialists – J R D Tata, G D Birla, Ardeshir Dalal, Lala Shri Ram, Kasturbhai Lalbhai, A D Shroff, Purushottamdas Thakurdas, and John Matthai came out with a blueprint for independent India’s economic development.

    The Bombay Plan

    • This ‘Bombay Plan’ outlined the strategy for doubling of the agricultural output and five- fold increase in the industrial sector within 15 years.
    • They accepted that without State support this would not be possible.
    • Though it was never officially accepted but the post-independence economic planning did follow the same path of State interventions and a mixed economy with large-scale public sector.

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  • Controversy around the $500 million MCC grant to Nepal

    Nepal’s House of Representatives has ratified 500 million US Dollar grant assistance-Millennium Challenge Corporation (MCC) pact along with the “interpretative declaration”.

    What is Millenium Challenge Corporation?

    • The MCC was founded in 2004 as a US foreign aid agency that acts in accordance with governments that have demonstrated a commitment to good governance, economic freedom, and citizen investment.
    • It was envisioned as an organisation that would follow the Paris Declaration on Aid Effectiveness’ key principles.
    • MCC works with countries that have been identified as being eligible for assistance to develop programmes that are based on MCC’s purpose of decreasing poverty via economic growth.
    • MCC’s results framework, which is based on the fourth and fifth principles of the Paris Declaration, Results and Mutual Accountability.
    • It provides a framework for applying the agency’s rigorous methods for projecting, tracking, and evaluating the effects of its programmes.
    • MCC uses this framework to address basic questions about aid effectiveness.

    Investments made by MCC

    • Compact and threshold programmes are the two types of programmes in which MCC invests.
    • Compacts are large, five-year grants implemented by an accountable entity established by each partner nation.
    • Thresholds are smaller funds focusing on policy and institutional transformation in selected countries implemented by MCC.

    The background of the project

    • MCC’s partnership with Nepal began in 2011, when the country requested assistance.
    • MCC first chose Nepal for a smaller threshold grant, and subsequently in December 2014, for a larger compact.
    • Three years later, in September 2017, the MCC-Nepal compact was signed, with the US committing $500 million and Nepal committing $130 million.
    • Nepal is expected to generate an electricity infrastructure with 400kVA transmission lines through the MCC project, which will be used to distribute power both domestically and to India.
    • Furthermore, the MCC’s implementation could boost the Nepalese economy by increasing employment possibilities and increasing per capita income.

    Issues with the project

    • It is estimated that if the agreement is not passed by Parliament, the power producers in the country are likely to lose a staggering Rs. 142 billion every year.
    • As a result, PM Sher Bahadur Deuba is striving to get the MCC passed in Parliament as soon as possible, even if it means splitting the coalition government.
    • In addition, if he fails to get it through Parliament, there is a possible risk of losing his international credibility.

    America vs China: Objections around MCC

    • The MCC agreement has created a political divide in Nepal.
    • The compact has been criticised in Nepal as endangering the country’s sovereignty, integrity, and constitutional autonomy.
    • The claim that the MCC agreement supersedes the national charter and shall prevail over Nepal’s domestic laws.
    • Many have interpreted this to suggest that the compact replaces the constitution, compromising Nepal’s sovereignty.
    • The MCC’s inclusion in the Indo-Pacific Strategy (IPS) is considered problematic for Nepal, as the majority of the country’s political class views the US strategy as anti-China.

    India’s role in the ongoing political crisis in Nepal

    • Few claim that the electricity generated by MCC will be only for export to India and will not be for the local public.
    • As a result, it will not benefit the local economy directly.
    • Nepal’s hydroelectric generation potential is huge, with over 6,000 large and small rivers.
    • However, through a series of barrages and dams, India has control over the majority of Nepal’s major rivers.
    • Nationalists in the Himalayan country have strongly objected to this.
    • In Nepal, where India is still perceived as a meddling big brother, its goal of strengthening India’s military capabilities through this agreement to counter China’s was questioned.

     

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  • Land protests over Deocha Pachami Coal Block

    The West Bengal government’s ambitious Deocha Pachami coal block mining project in Birbhum district has run into hurdles over land acquisition and other issues.

    Deocha Pachami Coal Block

    • The State government is planning to start mining at the Deocha Pachami coal block, considered to be the largest coal block in the country with reserves of around 1,198 million tonnes of coal.
    • It is spread over an area of 12.31 sq. km, which is around 3,400 acres.
    • There are around 12 villages in the project area with a population of over 21,000, comprising Scheduled Castes and Scheduled Tribes.

    Why are locals upset?

    • The project is facing protests over land acquisition of which a significant part is forest land.
    • Locals, mostly Santhal tribals, have close affinity with the land, with forests and waterways, and rely on it for their needs.
    • The tribals were harassed and had been arrested under false and serious charges for protesting.
    • Also, the project details have not yet been made public; and the environment clearance is awaited.

    Back2Basics:

    Coal

    • This is the most abundantly found fossil fuel. It is used as a domestic fuel, in industries such as iron and steel, steam engines and to generate electricity. Electricity from coal is called thermal power.
    • The coal which we are using today was formed millions of years ago when giant ferns and swamps got buried under the layers of earth. Coal is therefore referred to as Buried Sunshine.
    • The leading coal producers of the world include China, US, Australia, Indonesia, India.
    • The coal-producing areas of India include Raniganj, Jharia, Dhanbad and Bokaro in Jharkhand.
    • Coal is also classified into four ranks: anthracite, bituminous, sub-bituminous, and lignite. The ranking depends on the types and amounts of carbon the coal contains and on the amount of heat energy the coal can produce.

     

  • What is the International Court of Justice?

    Ukraine has filed an application before the International Court of Justice (ICJ), instituting proceedings against the Russian Federation for committing Genocide.

    International Court of Justice

    • The ICJ is the principal judicial organ of the United Nations (UN).
    • It was established in June 1945 by the Charter of the United Nations and began work in April 1946.
    • The court is the successor to the Permanent Court of International Justice (PCIJ), which was brought into being through, and by, the League of Nations.
    • It held its inaugural sitting at the Peace Palace in The Hague, Netherlands, in February 1922.

    Its establishment

    • After World War II, the League of Nations and PCIJ were replaced by the United Nations and ICJ respectively.
    • The PCIJ was formally dissolved in April 1946, and its last president, Judge José Gustavo Guerrero of El Salvador, became the first president of the ICJ.
    • The first case, which was brought by the UK against Albania over concerning incidents in the Corfu channel — the narrow strait of the Ionian Sea between the Greek island of Corfu and Albania.

    Seat and role

    • Like the PCIJ, the ICJ is based at the Peace Palace in The Hague.
    • It is the only one of the six principal organs of the UN that is not located in New York City.
    • The other five organs are:
    1. General Assembly
    2. Security Council
    3. Economic and Social Council
    4. Trusteeship Council
    5. Secretariat
    • The court as a whole must represent the main forms of civilization and the principal legal systems of the world.
    • The judges of the court are assisted by a Registry, the administrative organ of the ICJ. English and French are the ICJ’s official languages.

    Jurisdiction of ICJ

    • All members of the UN are automatically parties to the ICJ statute, but this does not automatically give the ICJ jurisdiction over disputes involving them.
    • The ICJ gets jurisdiction only if both parties consent to it.
    • The judgment of the ICJ is final and technically binding on the parties to a case.
    • There is no provision of appeal; it can at the most, be subject to interpretation or, upon the discovery of a new fact, revision.
    • However, the ICJ has no way to ensure compliance of its orders, and its authority is derived from the willingness of countries to abide by them.

    Judges of the court

    • The ICJ has 15 judges who are elected to nine-year terms by the UN General Assembly and Security Council, which vote simultaneously but separately.
    • To be elected, a candidate must receive a majority of the votes in both bodies, a requirement that sometimes necessitates multiple rounds of voting.
    • Elections are held at the UNHQ in New York during the annual UNGA meeting.
    • A third of the court is elected every three years.
    • The judges elected at the triennial election commence their term of office on February 6 of the following year.
    • The president and vice-president of the court are elected for three-year terms by secret ballot. Judges are eligible for re-election.

    India in ICJ

    • Four Indians have been members of the ICJ so far.
    • Justice Dalveer Bhandari, former judge of the Supreme Court, has been serving at the ICJ since 2012.
    • Former Chief Justice of India R S Pathak served from 1989-91, and former Chief Election Commissioner of India Nagendra Singh from 1973-88.
    • Singh was also president of the court from 1985-88, and vice-president from 1976-79.
    • Before him, Sir Benegal Rau, who was an advisor to the Constituent Assembly, was a member of the ICJ from 1952-53.

    Indian cases at the ICJ

    • India has been a party to a case at the ICJ on six occasions, four of which have involved Pakistan.
    • They are:
    1. Right of Passage over Indian Territory (Portugal v. India, culminated 1960);
    2. Appeal Relating to the Jurisdiction of the ICAO Council (India v. Pakistan, culminated 1972);
    3. Trial of Pakistani Prisoners of War (Pakistan v. India, culminated 1973);
    4. Aerial Incident of 10 August 1999 (Pakistan v. India, culminated 2000);
    5. Obligations concerning Negotiations relating to Cessation of the Nuclear Arms Race and to Nuclear Disarmament (Marshall Islands v. India, culminated 2016); and
    6. (Kulbhushan) Jadhav (India v. Pakistan, culminated 2019).

    Back2Basics:

    BASIS INTERNATIONAL CRIMINAL COURT INTERNATIONAL COURT OF JUSTICE
    Relationship with the United Nations Independent; UN Security Council may refer matters to it Primary judicial branch of the UN.
    Members 105 members 193 members (all members of the United Nations).
    Derives authority from The Rome Statute Charter of the United Nations and the Statute of the International Court of Justice.
    Scope of work Criminal matters – investigating and prosecuting crimes of genocide, crimes against humanity, and war crimes Civil matters- settling legal disputes between the member-states and giving advisory opinions on international legal issues
    Jurisdiction Only the member nations of the ICC, which means around 105 countries. Can try individuals. All the member nations of the UN, which means 193 countries. Cannot try individuals and other private entities.
    Composition 1 prosecutor and 18 judges, who are elected for a 9-year term each by the member-states which make up the Assembly of State Parties with all being from different nations 15 judges who are elected for a 9-year term each and are all from different nations.
    Funding Funded by state parties to the Rome Statute and voluntary contributions from the United Nations, governments, individual corporations, etc. Funded by the UN.

     

     

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  • [Burning Issue] India and Latin America Relations

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    Context

    Latin America is generally understood to consist of the entire continent of South America in addition to Mexico, Central America, and the islands of the Caribbean whose inhabitants speak a Romance language such as Spanish, Portuguese, and French.

    History of Indo-Latin American Ties

    • India’s ties with certain Latin American nations are longstanding and Mexico was the first Latin American country to recognize India after its independence in 1947.
    • When Fidel Castro ousted the Batista regime in Cuba in 1959, India was one of the first countries to recognize the new government, set-up an embassy in Havana and establish diplomatic relations.
    • However, relations between India and Latin America did not gather momentum throughout most of India’s post-independence history.
    • India and Latin American nations were both colonies of European powers. After achieving independence, both adopted socialist policies, which did little to enhance relations.
    • Many Latin America and the Carribbean (LAC) countries joined the Non-Aligned Movement (NAM).
    • India also supported LAC countries against United States (US) interventions in the United Nations (UN) and other multilateral gatherings, but this did not address the deficit in relationship.

    Why does Latin America Matter?

    • Energy demand is rising: In a view of India’s growing demand for energy and its interest in seeking overseas investments, Latin America attracts New Delhi’s interest. After all, the region is rich in extractive resources.
    • Important markets: Given that three G20 economies, i.e. Brazil, Mexico, and Argentina are in Latin America, Indian businesses are keen to tap its expansive market.
      • During the last two decades, India’s trade with Latin American countries has grown substantially and its investments are diversified in sectors such as Information Technology (IT) and manufacturing.
      • Moreover, the region has emerged as an important market for the Indian pharmaceutical and automobile industries.
    • China’s emergence in the region: Analysts within India’s strategic community are of the view that China is fast emerging as Latin America’s economic and strategic partner, and that India must begin expanding its own footprint in the region.
    • India’s Soft Power is making difference: To its advantage, India’s status as a rising power, its economic growth, as well as its soft power in the form of its cultural and civilizational practices such as yoga have gained traction in Latin America.

    Why Indo-Latin American Ties did not grow?

    • Relations between India and Latin America did not gather momentum owing mainly to the geographical distance between the two regions, and differing domestic and international priorities.
    • Thousands of miles away, Latin America played a small role in New Delhi’s strategic and geopolitical considerations.
    • There has also been a lack of cultural, linguistic and diaspora connections between the two regions in the past.

    Current Trade Relations with the LAC Region

    • Following liberalisation of the Indian economy, Latin American governments and their private sectors saw opportunities in India’s growing market.
    • Indian industries also discovered that some, middle-income countries of Latin America offered better markets than those of North America and Western Europe.
    • Venezuela, Brazil, Mexico, Chile, Colombia, Argentina, Peru, Ecuador, the Dominican Republic, and Panama are currently India’s top ten trading partners in the LAC.
    • There has been an upward swing in the relations between India and Mexico after Prime Minister’s visit to Mexico in June 2016, when both countries decided to upgrade bilateral relations to the level of ‘strategic partnership’.
    • India is currently Mexico’s ninth most important global trading partner, after the US, India is Mexico’s largest supplier of automobiles.
    • Brazil has historically been the cornerstone of India’s relations with Latin America, but recently there is a dip in bilateral trade.
    • However, India has invested billions of dollars in Brazil’s hydrocarbon reserves and crude imports.

    Significance of Indo-Latin American Ties

    • India also exports a billion dollars’ worth of generic medicines to Latin America, which has helped these countries reduce the cost of healthcare.
    • The entry of Indian generic pharmaceuticals in Latin America over the last two decades has also put pressure on local and multinational companies to reduce their prices.
    • Latin American firms have invested about a billion dollars in India in areas such as soft drinks, multiplexes, theme parks, and auto parts.
    • Latin American software firms have also established development and delivery centres in India, employing over a thousand Indian software engineers
    • Latin America has also emerged as a key contributor to India’s energy security.
      • India now imports 20% of its crude oil from Brazil, Columbia, Mexico and Venezuela
      • In 2012, India overtook China as the largest Asian buyer of Venezuelan oil.
    • India also constitutes one of the largest suppliers of IT services to Latin America
      • Over 35,000 Latin Americans are employed in Indian IT companies operating in the region
      • New Delhi is also actively promoting official policies intended to further expand Indian IT services in Latin America.

    Countering Chinese Expansion in the Region

    • Although India has steadily expanded its footprint in Latin American countries over the past several years, it is still dwarfed by China’s immense presence in the region.
    • Many Latin Americans governments resent Chinese imports, which flood their markets at the cost of local businesses. They are also worried by their growing dependence on Chinese investments.
    • By contrast, India’s modest trade and investments are welcomed with virtually no opposition. This gives New Delhi an unexpected, long-term competitive advantage over China.

    India’s interests in Latin America

    (1) Economic

    • Latin America is also very rich in minerals such as copper, lithium, iron ore, gold and silver. It gives India an opportunity to increase investments for their extraction as well as for their imports at cheaper rates.
    • India’s exports to Latin America increased by 9.6% in 2018-19 (April to March) reaching $13.16 billion from $12 billion in 2017-18.

    (2) Strategic 

    • The region is very important for India in order to achieve its global ambitions such as in order to pursue its membership of the UNSC, the NSG and at various other negotiations like climate change, terrorism, trade, etc
    • India is cooperating with Brazil at platforms like BRICS, IBSA which has provided an alternative platform for developing countries and reduces their dependence on existing institutions controlled by west.

    (3) Energy security

    • Currently India sources 15% of its crude oil from Latin America countries.
    • Latin America is also an important partner in the India led International Solar Alliance.

    (4) Food security

    • Latin America region is five times that of India and only has half as much population.
    • India is importing pulses and oil seeds from many of African and Southeast Asian countries at very high costs.

    Why India should expand ties with Latin American countries

    • Growth prospect: With a collective GDP of more than $6 trillion, and a combined population of more than 600 million, half of which is under the age of thirty, Latin America constitutes a dynamic, growing and resource-rich part of the world with huge economic prospects for India.
    • Food Security: Latin America can also contribute towards food security. The region is five times the size of India and has only half the population. India is currently importing pulses and oilseeds from other countries at high costs.
    • Cheaper imports: Latin America is also very rich in minerals such as copper, lithium, iron ore, gold and silver, and could give India an opportunity to increase investments for their extraction as well as for their import at cheaper rates.

    Way Forward

    • Bringing India and Latin America together will require effective institutional framework as well as businesses and people-to-people networks.
    • India must also promote Latin American studies, invest in shipping industries, and conclude preferential trade agreements and free trade agreements at the earliest.
    • Latin American languages must be encouraged in India to incentivise Indian professionals to take jobs in these countries, and to promote trading ties.
    • The commerce ministry should revive its ‘Focus:LAC’ programme, which has previously helped encourage and support Indian exporters to explore business opportunities in the region.

    Conclusion

    • Latin America is being increasingly considered as an important investment destination due to its growing industrial and manufacturing strength.
    • India offers immense opportunities for collaboration, trade and investment for partner countries from Latin America. Latin American nations have long been seeking more diplomatic representation from India.
    • Despite recent improvements on many fronts, however, both India and the LAC countries face some formidable challenges.
    • They still have some of the highest inequality indices in the world, as well as serious deficiencies in infrastructure, technology, innovation and competitiveness.
    • India and the LAC region could approach these challenges as opportunities to forge new partnerships to promote growth and development through increased trade and investment.

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  • [pib] International Monsoons Project Office (IMPO)

    Union Minister of Science & Technology has launched the International Monsoons Project Office (IMPO).

    International Monsoons Project Office (IMPO)

    • IMPO will be hosted at the Indian Institute of Tropical Meteorology (IITM), Pune, an institution under the Ministry of Earth Sciences, Govt of India, initially for five years.
    • Setting up the IMPO reiterates the importance of monsoons for the national economy.
    • It would encompass activities and connections related to international monsoon research that would be identified and fostered under the leadership of the World Climate Research Programme.
    • Both the World Climate Research Programme and World Weather Research Programme are international programmes coordinated by the United Nations World Meteorological Organisation (WMO).

    Significance of IMPO

    • Setting up the IMPO in India would mean expanding an integrated scientific approach to solve the seasonal variability of monsoons, enhancing the prediction skill of monsoons and cyclones.
    • It would promote knowledge sharing and capacity building in areas of monsoon research crucial for agriculture, water resources and disaster management, hydropower and climate-sensitive socio-economic sectors.
    • It is a step towards making India a global hub for monsoon research and coordination in a seamless manner for addressing common and region-specific aspects of the monsoons around the world.

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    Back2Basics:

    Various terms related to Indian Monsoon

  • [pib] Unified Logistics Interface Platform (ULIP)

    National Logistics Portal (NLP) is set to be integrated with Unified Logistics Interface Platform (ULIP) to make the multi-modal logistics ecosystem more efficient.

    Unified Logistics Interface Platform (ULIP)

    • ULIP is designed to enhance efficiency and reduce the cost of logistics in India by creating a transparent, one window platform that can provide real-time information to all stakeholders.
    • It was also emphasized that the solution should have the visibility of multi-modal transport, and all the existing systems of various ministries, governing bodies, and private stakeholders should be integrated with the ULIP system.
    • This will create a National Single Window Logistics Portal which will help in reducing the logistics cost.
    • ULIP will provide real-time monitoring of cargo movement while ensuring data confidentiality with end-to-end encryption, comprehensive reduction in logistic cost resulting in competitive costing.

    There are three key components which are defining the ULIP platform:

    • Integration with existing data sources of ministries: As authorization, compliance and clearance are some of the critical activities of Logistics; the integration with data points of ministries shall enable a holistic view and interlink the handshaking points.
    • Data exchange with private players: To enable the private players, logistics service providers, and industries to utilize the data available with ULIP and at the same time share their data (transportation, dispatch, delivery, etc.) with ULIP, thereby streamlining the processes to bring better efficiency through data exchange.
    • Unified document reference in the supply chain: To enable a single digitized document reference number for all the documentation processes in a single platform.

     

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