Consumer goods distributors in Maharashtra has been protesting against Colgate’s alleged unfair treatment of traditional distributors vis-à-vis B2B (Business-to-Business) technology companies such as Reliance’s JioMart, Udaan and others.
The disruption caused by B2B companies
Nearly half-a-million of India’s distributors pick up goods from consumer companies such as Colgate and deliver them to 13 million small local stores located in 7,00,000 villages and towns across the country through a web of millions of traders and other intermediaries.
Enter the new age technology B2B companies.
They have developed technologies to connect directly to the kirana store through a mobile phone app, bypassing the intermediaries.
They supply goods to the local store for lower prices than the charged by the distributor.
Unable to match such prices and facing the peril of losing business, India’s distributors claim these are unfair practices and want manufacturers such as to stop supplying goods to the technology companies.
Issue of disruption caused by the pricing power and predatory pricing
Creative destruction: New innovations disrupting an existing process and rendering incumbents futile is generally a healthy process of ‘creative destruction’, as the Austrian economist, Joseph Schumpeter, postulated.
But this disruption in India is driven not entirely by technology innovation but also through pricing power.
These technology companies bear the loss on the products they sell to the local store.
Further, they offer extensive credit terms and working capital to the local stores.
In other words, these technology companies rely not just on their mobile phone app innovation but also steep price discounting and cheaper financing to win customers.
Evidently, these companies use the money to not only build new technologies but also to undercut competitors and steal market share.
This practice, called predatory pricing, is illegal in most countries including India.
These companies are supplied with funds from foreign venture capital firms, which in turn are largely funded by American pension funds and university endowments.
The flip side is that India’s millions of distributors and intermediaries have no access to such finance.
These small companies are cut off from the endless stream of free foreign money that gushes into new age ‘startups’ and established large corporates.
Problems created by predatory pricing
While consumers may benefit from lower prices, the livelihoods of millions of distributors, traders and their families suffer.
To be sure, this is not just an India problem but a global one.
Social media companies such as Facebook give away their products for free and e-commerce companies such as Amazon sell at lower prices, benefiting consumers enormously, but also causing immense social strife and disharmony.
But in India’s case, there is an added complexity of foreign capital flows.
Access to this capital is only available to a tiny proportion of Indian businesses but threatens the livelihoods of millions of Indian families, as in the case of distributors, causing massive income and social disparities.
This unequal access to capital creates leads to anti-competitive behaviour.
Consider the question “What is predatory pricing? What are the issues created by predatory pricing?”
Conclusion
To be clear, this is not a Luddite argument against e-commerce or technological innovations. The issue is about illegal predatory pricing and abuse of pricing power by startups and big corporates through preferential access to easy foreign money.
Recently, the University Of Maryland School Of Medicine announced that it had successfully transplanted a genetically-modified pig heart into a patient with severe ailments.
What is Xenotransplantation?
Xenotransplantation, or transplanting organs across different species, was first tried in humans in the 1980s.
The experiment was abandoned after the famous case of the American Baby Fae who was born with a congenital heart defect and received a baboon heart in 1984.
However, pig heart valves have been used for replacing damaged valves in humans for over 50 years now.
Nowadays, harvesting organs from genetically engineered pigs is seen as a viable alternative to meet organs shortage.
How the pigs are genetically engineered?
The donor pig underwent 10 genetic modifications, by which the genes responsible for the rapid rejection of foreign organs by the human body were inactivated or knocked out.
Four pig genes were removed, and six human genes were added.
“GalSafe” pigs, or pigs that had undergone editing to knock out a gene that codes for Alpha-gal (a sugar molecule) were used.
Alpha-gal can elicit a devastating immune response in humans.
GalSafe pigs have been well studied, and are approved by the US Food and Drug Administration (FDA) for use in pharmacology.
Why pursue xenotransplantation?
Modern scientific supporters of xenotransplantation argue that the potential benefits to society outweigh the risks, making pursuing xenotransplantation the moral choice.
None of the major religions object to the use of genetically modified pig organs for life-saving transplantation.
A crucial case in India
Harvesting organs from genetically engineered pigs is seen as a viable alternative to meet organs shortage.
According to the health ministry, around 0.18 million people in India are estimated to suffer from renal failure every year, but only about 6,000 renal transplants are carried out in the country.
About 25,000-30,000 liver transplants are needed annually in India but only about 1,500 are being performed.
In the case of the heart, 50,000 people suffer from heart failure and are in need of a heart transplant.
Yet, only 10-15 heart transplants are carried out in India each year.
Issues with Xenotransplantation
Besides scientific challenges, there are several ethical challenges to overcome:
Animal rights: Many, including animal rights groups, strongly oppose killing animals to harvest their organs for human use.
Decreased life expectancy: In the 1960s, many organs came from the chimpanzees, and were transferred into people that were deathly ill, and in turn, did not live much longer afterwards.
Religious violations: Certain animals such as pork are strictly forbidden in Islam and many other religions.
Informed consent: Autonomy and informed consent are important when considering the future uses of xenotransplantation.
Threats of zoonosis: The safety of public health is a factor to be considered. We are already battling the biggest zoonotic disease threat.
Notwithstanding the eventual introduction of the Cryptocurrency and Regulation of Official Digital Currency Bill in Parliament, cryptocurrencies continue to proliferate.
Provisions in Income Tax Act 1961 to tax cryptocurrencies
Cryptocurrencies not mentioned in Income Tax Act, 1961: Although the Income Tax Act, 1961 (“IT Act”) does not specifically mention cryptocurrencies, it does cast a wide enough net to bring crypto transactions under its ambit.
Capital asset: Trading in cryptocurrency may be classified as transfer of a ‘capital asset’, taxable under the head ‘capital gains.
Business income: If such cryptocurrencies are held as stock-in trade and the taxpayer is trading in them frequently, the same will attract tax under the head ‘business income’.
Even if one argues that crypto transactions do not fall under the above heads, Section 56 of the IT Act shall come into play, making them taxable under the head ‘Other sources of income’.
Challenges in taxing cryptocurrencies
The above provisions in themselves are not sufficient in order to put in place a simple yet effective taxation regime for cryptocurrencies.
[1] Varied interpretations:
First, the absence of explicit tax provisions has led to uncertainty and varied interpretations being adopted in relation to mode of computation, applicable tax head and tax rates, loss and carry forward, etc.
For instance, the head of income under which trading of self generated cryptocurrency (currencies which are created by mining, acquired by air drop, etc.) is to be taxed is unclear.
Since there is no consistency in the rates provided by the crypto-exchanges, it is difficult to arrive at a fair market value.
Similarly, when a person receives cryptocurrency as payment for rendering goods or services, how should one arrive at the value of the said currency and how should such a transaction be taxed?
[2] Identifying tax jurisdiction
It is often tricky to identify the tax jurisdiction for crypto transactions as taxpayers may have engaged in multiple transfers across various countries and the cryptocurrencies may have been stored in online wallets, on servers outside India.
[3] The anonymity of taxpayer
The identities of taxpayers who transact with cryptocurrencies remain anonymous.
Exploiting this, tax evaders have been using crypto transactions to park their black money abroad and fund criminal activities, terrorism, etc.
[4] Lack of third party information on crypto transaction
The lack of third party information on crypto transactions makes it difficult to scrutinise and identify instances of tax evasion.
One of the most efficient enforcement tools in the hands of Income Tax Department is CASS or ‘computer aided scrutiny selection’ of assessments, where returns of taxpayers are selected inter alia based on information gathered from third party intermediaries such as banks.
However, crypto-market intermediaries like the exchanges, wallet providers, network operators, miners, administrators are unregulated and collecting information from them is very difficult.
[5] Physical goods/services may change hand in return for cryptocurrencies
Even if the crypto-market intermediaries are regulated and follow Know Your Customer (KYC) norms, there remains a scenario, where physical cash or other goods/services may change hands in return for cryptocurrencies.
Such transactions are hard to trace and only voluntary disclosures from the parties involved or a search/survey operation may reveal the tax evaders.
Steps need to be taken
Statutory provision: The income-tax laws pertaining to the crypto transactions need to be made clear by incorporating detailed statutory provisions.
Awareness generation: This should be followed by extensive awareness generation among the taxpayers regarding the same.
Separate mandatory disclosure: The practice of having separate mandatory disclosure requirements in tax returns (as is the case in the United States) should be placed on the taxpayers as well as all the intermediaries involved, so that crypto transactions do not go unreported.
Strengthen international legal framework: Additionally, the existing international legal framework for exchange of information should be strengthened to enable collecting and sharing of information on crypto-transactions.
This will go a long way in linking the digital profiles of cryptocurrency holders with their real identities.
Training tax officers: the Government must impart training to its officers in blockchain technology.
The United Nations Office on Drugs and Crime’s ‘Cybercrime and Anti-Money Laundering’ Section (UNODC CMLS) has developed a unique cryptocurrency training module, which can aid in equipping tax officers with requisite understanding of the underlying technologies.
Consider the question “What are the provision in Income Tax Act 1961 to tax the cryptocurrencies? What are the challenges in taxing cryptocurrencies? “
Conclusion
It is certain that cryptocurrencies are here to stay. A streamlined tax regime will be essential in the formulation of a clear, constructive and adaptive regulatory environment for cryptocurrencies.
In the first export order for the BrahMos supersonic cruise missile system, the Philippines has approved a $374.96 mn contract for the purchase of a shore-based anti-ship variant of the missile from India.
About BrahMos Missile
BrahMos missile derives its name from the combination of the names of Brahmaputra and Moskva Rivers.
They are designed, developed and produced by BrahMos Aerospace, a joint venture company set up by DRDO and Mashinostroyenia of Russia.
It is a two-stage missile with a solid propellant booster as the first stage and liquid ramjet as the second stage.
The cruise missiles like BrahMos are a type of system known as the ‘standoff range weapons’ which are fired from a range sufficient to allow the attacker to evade defensive fire from the adversary.
Such weapons are in the arsenal of most major militaries in the world.
Its capability
BrahMos missile flies at a speed of 2.8 Mach or almost three times the speed of sound.
It is the main weapon system of the Indian Navy warships and has been deployed on almost all of its surface platforms.
An underwater version is also being developed which will not only be used by the submarines of India but will also be offered for export to friendly foreign nations.
Various versions
The versions of the BrahMos that are being tested have an extended range of around 400 km, as compared to its initial range of 290 km, with more versions of higher ranges currently under development.
Various versions including those which can be fired from land, warships, submarines and Sukhoi-30 fighter jets have already been developed and successfully tested in the past.
The earliest versions of the ship launched BrahMos and land-based system are in service of the Indian Navy and the Indian Army since 2005 and 2007 respectively.
A controversy recently broke out after the National Commission for Protection of Child Rights (NCPCR) recommended that the Delhi government suspend its flagship ‘Desh ke Mentor’ programme.
What is the Desh Ke Mentor Programme?
The programme was launched in October 2021 and is aimed at connecting students in classes IX to XII with voluntary mentors.
People between the ages of 18 and 35 can sign up to be mentors through an app created by a team at the Delhi Technological University and will be connected with students based on mutual interests.
The mentorship entails regular phone calls for a minimum of two months, which can optionally be carried on for another four months.
The idea is for the young mentors to guide students through higher education and career options, preparation for higher education entrance exams, and dealing with the pressure of it all.
How is a person selected to be a mentor?
The registration process takes place on the Desh ke Mentor app.
The volunteer has to fill in information about themselves such as their date of birth, education qualification, profession, organisation they work with and so on.
However, it is optional for them to upload any proof of identity.
Once the registration is complete, the mentor is connected to a set of children of the same gender as themselves whose interests align with theirs.
Students have to take parental consent before becoming a part of the programme.
What are the concerns raised by the NCPCR regarding this process?
It has stated that assigning children to a mentor of the same gender as them does not necessarily assure their safety from abuse.
It has also expressed concern over the lack of police verification of the mentors.
It has a psychometric test which has not been scrutinized by professional practising experts.
It has also stated that limiting interactions to phone calls also does not ensure the safety of children since “child-related crime can be initiated through phone calls as well.”
Back2Basics: National Commission for Protection of Child Rights (NCPCR)
The NCPCR is an Indian statutory body established by an Act of Parliament, the Commission for Protection of Child Rights (CPCR) Act, 2005.
It works under the aegis of the Ministry of Women and Child Development and began operational on 5 March 2007.
It works to ensure that all Laws, Policies, Programmes, and Administrative Mechanisms are in consonance with the Child Rights perspective as enshrined in the Constitution of India and the UN Convention on the Rights of the Child.
As defined by the commission, a child includes a person up to the age of 18 years.
To mark the contribution of the overseas Indian community in the development of India, the Pravasi Bharatiya Divas is celebrated on 9th January every year.
Indian Diaspora: A backgrounder
Indian Diaspora is a generic term used for addressing people who have migrated from the territories that are currently within the borders of India.
From Google CEO to Nobel laureate scientist Har Gobind Khorana, the list of Indians abroad and their contribution to the world goes endlessly.
One of the greatest economic contributions of Indian Diaspora has been in terms of remittances.
Historical perspective
Imperialism led-migration: The incorporation of the British Empire in India can be linked to the existence of modern Indian Diaspora all over the world.
Indentured labor: Dating back to the nineteenth century, Indian indentured labor was taken over to the British colonies in different parts of the world.
World Wars: In the post World War II period, most of the Indian labor and professionals got scattered and it was a worldwide phenomenon.
European reconstruction: The reconstruction of Europe after the war was provided by Indians and other South Asians, particularly in the United Kingdom and Netherlands.
Modern brain-drain: Most recently, Indians have made their presence visibly felt in professions in countries like the United States, Canada, and Australia.
Major sections of Indian Diaspora
(1) Indians in the Gulf
Around 8.5 million Indians live and work in the Gulf countries, one of the largest concentrations of migrants in the world.
The geographical and historical proximity makes it a convenient destination for Indians.
Today migrants from across India are working and living in the Gulf countries (Saudi Arabia, UAE, Qatar, Bahrain, Oman, and Kuwait).
(2) Indians in USA
In recent decades the population has grown substantially, with 2.4 million Indian immigrants resident in the United States as of 2015.
This makes the foreign-born from India the second-largest immigrant group in the US after Mexicans.
Categorizing Indian’s abroad
Overseas Indians, officially known as Non-resident Indians (NRIs) or Persons of Indian Origin (PIOs), are people of Indian birth, descent or origin who live outside the Republic of India:
(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.
Significance of Indian diaspora
(A) Contribution in the freedom struggle
Mahatma Gandhi’s struggle for ending institutionalized discrimination against Indians in South Africa became an inspiring legend for enduring sentimentalism about the diaspora in modern India.
The diaspora also became a vehicle for promoting the cause of Indian independence among the political elites of major countries.
As the independence movement gathered momentum at home, it began to influence many Indian communities abroad.
(B) Diaspora as Cultural extension
The act of migration is not just limited to geographical limits; rather it is a cultural extension.
Let us take the example of the Sikh community. The Sikhs are one of the largest migrants from India to the UK, Canada and many other countries.
They have very well maintained their culture and ethnic existence for decades.
(C) Remittances
Money sent home by migrants is one of the largest financial inflows to developing countries.
According to a World Bank Report, India received approximately 87 billion dollars in remittances in 2021 with USA being the biggest source, accounting for over 20% of these funds.
Without these remittances, India’s balance of payment position would have looked worse.
(D) Diaspora as ‘Agents of change’
Diaspora acts as ‘agents of change’ facilitating and enhancing investment, accelerating industrial development, and boosting international trade and tourism.
Diaspora’s motives to invest in India are long-lasting as many of them wish to establish a long-term base in India.
(E) Technological development and entrepreneurship
Another tangible long-term advantage in nurturing ties with an active diaspora is an accelerated technological sector and increased socio-economic development.
Some examples to illustrate this phenomenon are Bengaluru, Gurugram and Hyderabad as thriving IT hubs that not only house multinational companies (MNCs) but also multiple Indian start-ups.
(F) Enhancing India’s global say
India’s permanent membership to the UNSC can become a reality with support from the diaspora.
Apart from political pressures and ministerial and diplomatic level lobbying, India can leverage its diaspora to influence states such as Canada and Mexico to support India’s membership
Most Importantly,
(G) Diaspora diplomacy
The diaspora’s ability to spread Indian soft power, lobby for India’s national interests, and contribute economically to India’s rise is now well-recognized.
A less tangible but important advantage in having a large immigrant group is “diaspora diplomacy”.
The recent engagement of Indian leaders in US general elections is a continuation of the extraordinary political investment in engaging the Indian diaspora.
India’s engagement with Diaspora: A policy-wise perspective
Many of the themes of India’s contemporary diaspora policy had their origins in the approach of the Indian national movement before independence.
The nationalist backlash against the Indian communities in Africa and Asia in the 1950s and 1960s saw Delhi consciously distance itself from the diasporic communities.
As India turned inwards, Delhi also took a dim view of the “brain drain” as many well-trained Indians began to look for opportunities elsewhere.
It was only in the late 1980s that Delhi began to rethink its approach to the diaspora.
Change in recent years
PM Rajiv Gandhi was the first to appreciate the potential role diaspora could play in advancing national development and improving India’s ties with the US.
In 2000, the Pravasi Bharatiya Divas was commenced to be celebrated and also led to the formation of a separate Ministry for Overseas Indians under PM AB Vajpayee.
Other innovative initiatives like the Know India Programme (KIP) and Study India Programme (SIP) were launched.
These have engaged the youth living abroad and the Tracing the Roots Scheme, through which some Indians have been able to trace their roots in India.
Most recent initiatives
India has been following the spirit of 4 Cs i.e. Connect – Contribute – Celebrate – Care.
There is a dedicated Diaspora Welfare Officer.
The authorities have been ensuring 100 percent grievance redressal through E-Migration Portal, Madad Portal, and CPGRAMS.
Various policy initiatives
Education: NRI seats are reserved in all the medical, engineering and other professional colleges.
Voting rights: The Representation of the People (Amendment) Bill 2017 the provision would help non-resident Indians (NRIs) to participate in the electoral process through ‘proxy voting’.
Know India Program (KIP): It is a flagship initiative for Diaspora engagement which familiarizes Indian-origin youth (18-30 years) with their Indian roots and contemporary India has been refashioned.
Minimum Referral Wages (MRW): A number of policies were announced keeping in mind the protection of welfare and interest of Indians abroad; for example, the 2014 Minimum Referral Wages (MRW).
Easing the passport facility: The last three years saw the launch of Head Post Offices as passport centers enabling thousands more to apply for a passport.
Challenges faced by Diaspora
Racial antagonism: Rising incidence of hate speech and crimes against Indians by the locals due to racism, communalism emboldened by coming of nationalist and ultra-nationalist governments to power in many countries.
Protectionism: Fear of losing jobs and educational opportunities to outsiders has resulted in stricter visa rules in many countries including the USA, Australia, etc.
Terrorism: Sectarian crisis, increasing terrorist activities and war in the Middle East countries (Yemen, Oman, Libya, Syria etc) leave our diaspora vulnerable to attacks.
Political Polarization: Many Indians abroad are turning against India since the change of government and some extreme right wing factionists.
Anti-national tendencies: India has had problems with negative campaigning and foreign funding, coming from abroad, for separatist movements like the Khalistan movement.
Way forward
India has enjoyed being viewed more favorably by the world since 2014, and the diaspora can further these perceptions.
India needs both additional resources as well as better systems to deal with the recurring challenges of supporting citizens abroad.
The diaspora can step up and act as Indian ‘ambassadors’, as it is insufficient and ineffective for a country or its missions abroad to rely only on press releases to change public opinion.
The diaspora can provide the requisite strategic impulse, which makes it all the more important to unlock their potential.
A distant undersea volcano has erupted in spectacular fashion near the Pacific nation of Tonga sending large tsunami waves reaching the shore.
Hunga Volcano
The Hunga-Tonga-Hunga-Ha’apai volcano has erupted regularly over the past few decades.
It consists of two small uninhabited islands, Hunga-Ha’apai and Hunga-Tonga, poking about 100m above sea level 65km north of Tonga’s capital Nuku’alofa.
But hiding below the waves is a massive volcano, around 1800m high and 20 kilometres wide.
During events in 2009 and 2014/15 hot jets of magma and steam exploded through the waves. But these eruptions were small, dwarfed in scale by the January 2022 events.
Researchers suggest this is one of the massive explosions the volcano is capable of producing roughly every thousand years.
Impact of the eruption
The ash plume is already about 20km high.
Most remarkably, it spread out almost concentrically over a distance of about 130km from the volcano, creating a plume with a 260km diameter, before it was distorted by the wind.
The eruption also produced a tsunami throughout Tonga and neighbouring Fiji and Samoa.
Shock waves traversed many thousands of kilometres, were seen from space, and recorded in New Zealand some 2000km away.
All these signs suggest the large Hunga caldera has awoken.
Why is it so explosive even after being underwater?
Answer: Fuel-coolant interaction
If magma rises into sea water slowly, even at temperatures of about 1200 degrees Celsius, a thin film of steam forms between the magma and water.
This provides a layer of insulation to allow the outer surface of the magma to cool.
But this process doesn’t work when magma is blasted out of the ground full of volcanic gas.
When magma enters the water rapidly, any steam layers are quickly disrupted, bringing hot magma in direct contact with cold water.
Volcano researchers call this ‘fuel-coolant interaction’ and it is akin to weapons-grade chemical explosions.
A chain reaction
Extremely violent blasts tear the magma apart.
A chain reaction begins, with new magma fragments exposing fresh hot interior surfaces to water, and the explosions repeat, ultimately jetting out volcanic particles and causing blasts with supersonic speeds.
How has it emerged out to be so big?
The caldera is a crater-like depression around 5km across.
Small eruptions (such as in 2009 and 2014/15) occur mainly at the edge of the caldera, but very big ones come from the caldera itself.
These big eruptions are so large the top of the erupting magma collapses inward, deepening the caldera.
Looking at the chemistry of past eruptions, we now think the small eruptions represent the magma system slowly recharging itself to prepare for a big event.
What next?
This latest eruption has stepped up the scale in terms of violence.
Researchers are still in the middle of this major eruptive sequence and many aspects remain unclear, partly because the island is currently obscured by ash clouds.
NEAT, first-of-its-kind government scheme, set in motion over two years ago, has finally taken shape, bringing courses offered by a group of edtech platforms within the reach of college and university students from socio-economically disadvantaged backgrounds.
NEAT Scheme
The National Education Alliance for Technology (NEAT) is implemented by the All India Council for Technical Education (AICTE).
It aims to act as a bridge between edtech companies, academic institutions and students.
The initiative was taken after a Ministry of Education review noted that learning tools developed by edtech platforms that can supplement classroom teaching need to be made more accessible.
Accordingly, it was proposed that a portal be created where edtech platforms can be roped in to display their products after a shortlisting process.
What are the products on display in the portal?
The NEAT portal has separate sections listing products for students and educational institutes respectively.
The companies were shortlisted by independent expert committees leaving no room for favouritism, he said.
Under the B2B (business to business) segment of the portal, courses are on offer for higher education institutes to purchase in bulk for their students.
And the B2C (business to customer) section lists courses that eligible students can browse through and choose from.
The courses range from accounting and finance to coding, including advanced programming languages like python.
How to enroll into this scheme?
There are two different ways through which students can enroll under the scheme.
The basic objective of the scheme is to make students from disadvantaged backgrounds aware of the availability of such opportunities that can help them learn new skills or polish existing ones.
In that regard, the AICTE reached out to higher education institutes across the country, directing them to inform students about the portal and enroll them based on their needs and consent.
The edtech platforms have been allowed to charge fees as per their policies.
How will it benefit students from backward communities?
In order to do that, the government has mandated that every shortlisted company will have to offer free coupons to the extent of 25 per cent of the total registrations for their solution through NEAT portal.
Through this route, the government created a bank of 12.15 lakh free coupons over the last two years.
And it has now started distributing those coupons among students belonging to SC/ST/OBC and EWS categories with the annual family income cap fixed at Rs 8 lakh.
What are the courses in demand?
The top five courses in terms of demand are python programming, C, C++, Java programming, data science, life science and healthcare analysis, and interview preparation.
Last year, the Supreme Court threw open the hallowed portals of the National Defence Academy for women. Something to truly celebrate on January 15, Army Day, this year.
Background
The first batch of women officers was inducted into the Indian Army in non-medical roles via the Short Service Commission in 1992.
Since 2008, women were inducted as permanent commissioned officers in the legal and education corps and as permanent commissioned officers in eight more non-combative corps in 2020.
The low number of women in Army
As recent as 2020, women officers in the Indian army (excluding the medical corps) numbered just about three per cent.
Compare this to 16 per cent in the US, 15 per cent in France and 10 per cent in both Russia and the UK.
Significance of allowing women to NDA
When in February 2020, the Supreme Court decreed that women officers should get command positions on par with male officers, it also effectively dismissed the military’s earlier objection that it would lead to “operational, practical and cultural problems”.
The SC went on to say that denying women commands based on the above argument was discriminatory and reinforced stereotypes.
Last year, the Supreme Court threw open the National Defence Academy for women to compete for the seats and subsequent permanent commission in the Indian army in any corps they desire, including the combat ones.
Addressing the shortage of officers: This may effectively address the long-standing shortage of officers in the Indian army in general. In response to a question in Rajya Sabha a month ago, the Minister of State for Defence said the Army has a shortage of 7,476 officers.
This torch may also help confront the chauvinism, often misspelt as chivalry, that indisputably exists in the Army.
Conclusion
The move promises to change the composition of this arm of the defence force not just quantitatively, but also qualitatively — both dire requirements of the force at present.
Back2Basics: Permanent Commission (PC) Vs. Short Service Commission (SSC)
SSC means an officer’s career will be of a limited period in the Indian Armed Forces whereas a PC means they shall continue to serve in the Indian Armed Forces, till they retire.
The officers inducted through the SSC usually serve for a period of 14 years.
At the end of 10 years, the officers have three options.
A PC entitles an officer to serve in the Navy till he/she retires unlike SSC, which is currently for 10 years and can be extended by four more years, or a total of 14 years.
They can either select for a PC or opt-out or have the option of a 4-years extension.
They can resign at any time during this period of 4 years extension.
Pakistan’s National Security Committee (NSC) approved the country’s first-ever National Security Policy (NSP) – which is designed to be a “Comprehensive National Security Framework” and covers a five-year period from 2022-26. Pakistan’s (official) policy now leaves the door open for trade with India even without the settlement of the Kashmir issue – provided there is headway in bilateral talks. Earlier, Kashmir used to be at the centre stage of all Pakistani outcry.
New Security Policy
The country’s new policy would act as an umbrella document, to be used as a guideline for Pakistan`s foreign, international and defence related policies.
The five-year-policy document, which will span 2022-26, is being touted by the Pakistan government as the country’s first-ever strategy paper of its kind.
Key highlights of the document
Focus on trade: The 100-page policy document has also put out elaborate plans to open trade and business ties with India.
Silent on Kashmir: Kashmir issue with India has been identified as a ‘vital national policy’ issue for Pakistan.
No public discussion: Only a part of the national security policy will be made public.
Defying hostility with India: The document states that Pakistan is not seeking hostility with India for the next 100 years.
Curbing militancy: The new policy also deals with the issue of militant and dissident groups and advocates dialogue with ‘reconcilable elements.’
No re-conciliation with India: There are no prospects of rapprochement with India under the current government.
Others: On the internal front, the new policy identifies five key areas of population/migration, health, climate and water, food security and gender mainstreaming.
Significance of such policy
Pakistan and India have mostly been at loggerheads with each other throughout history.
During the first term of Narendra Modi in 2014, the relations took a positive turn when he announced his intentions to have cordial relations with Pakistan.
He had also visited Islamabad in 2015 unannounced to attend a marriage ceremony in Ex-PMs family.
However, the relations deteriorated following the horrific 2016 Uri attacks.
Concerns with Pakistan’s National Security Policy
The vision laid out in the policy: There are concerns that this will result in increasing unchecked military control within the country and affect the borer-tensions with India as well.
Increased corruption: The Pakistan Army has never fully exposed the country’s defence spending and it does not allow inspection of its huge network of economic businesses and real estate.
Might increase extremism: There are concerns that Pakistan’s National Security Policy will result in increased radical events of extremism in the wake of challenging the security issues.
Hamper country’s growth: Diverting resources from development to military, in addition to Pakistan’s philosophy and attitude, is seen to hamper the country’s social growth and economic management.
Implications of the National Security Policy of Pakistan on India
The policy hints at peace with other countries, especially in the neighbourhood.
Strategic establishment in India would need to look at the policy in the context of security challenges.
The policy will impact Pakistan’s approach to India as an open-ended subject by changing the military engagements and infrastructure built up along the border areas.
The economic pressures and primacy in the National Security Policy make India review its trade policy towards Pakistan and take advantage of better economic dynamics.
India needs to demarcate a clear distinction between geo-politics and geo-economics in the context of provision of the policy.
The policy is unlikely to bring any change in Pakistan’s active support to cross-border terrorism and position on Kashmir.
China as anchor
Stoutly refusing to open up trade with India, Pakistan has looked to other economic and commercial partners among whom China is by far the most important.
The security relationship was the anchor of the China-Pakistan ties. Now, Pakistan hopes that China will offer its assistance to transform its economy.
It looks to the mechanisms under the China-Pakistan Economic Corridor (CPEC) to play a crucial role through connectivity, port development, power production and other investments.
Factors behind the complex bilateral ties between the two countries
(1) Cross-border Terrorism
Terrorism emanating from territories under Pakistan’s control remains a core concern in bilateral relations.
India has consistently stressed the need for Pakistan to take credible, irreversible and verifiable action to end cross-border terrorism against India.
Pakistan has yet not brought the perpetrators of the Mumbai terror attacks 2008 to justice in the ongoing trials, even after all the evidence have been provided to them.
India has firmly stated that it will not tolerate and comprise on issues regarding national security.
Based on attacks in India and involvement of the neighboring country, the Indian Army had conducted surgical strike at various terrorist launch pads across the Line of Control, as an answer to the attack at the army camp in Uri, Jammu and Kashmir.
India had again hit back over the cross-border terror attack on the convey of Indian security forces in Pulwama by carrying out a successful airstrike at a training camp of JeM in Balakot, Pakistan.
(2) Kashmir
Due to political differences between the two countries, the territorial claim of Kashmir has been the subject of wars in 1947, 1965 and a limited conflict in 1999 and frequent ceasefire violations and promotion of rebellion within the Indian side of Jammu and Kashmir.
The then princely state remains an area of contention and is divided between the two countries by the Line of Control (LoC), which demarcates the ceasefire line agreed post-1947 conflict.
(3) Siachen Glacier
Siachen Glacier is located in Northern Ladakh in the Karakoram Range.
Most of the Siachen Glacier is disputed between India and Pakistan. Before 1984, neither of the two countries had any permanent presence on the glacier.
Under the Shimla Agreement of 1972, the Siachen was called barren and useless. This Agreement also did not specify the boundary between India and Pakistan.
When India got intelligence that Pakistan was going to occupy Siachen Glacier, it launched Operation Meghdoot to reach the glacier first.
Following the success of Operation Meghdoot, the Indian Army obtained the area at a higher altitude and Pakistan army getting a much lower altitude. Thus, India has a strategic advantage in this region.
Following the 2003 armistice treaty between the two countries, firing and bombardment have ceased in this area, though both the sides have stationed their armies in the region.
(4) Sir Creek Dispute
Sir Creek is a 96 km estuary in the Rann of Kutch. Rann of Kutch lies between Gujarat (India) and Sindh (Pakistan).
Pakistan claims the entire Sir Creek in accordance with a 1914 agreement that was signed between the Government of Sindh and Rulers of Kutch.
India, on the other hand, claims that the boundary lies mid-channel as per a 1925 map.
If one country agrees to the other’s position, the former will lose a vast amount of Exclusive Economic Zone that is rich with gas and mineral deposits.
(5) Water disputes
The Indus Waters Treaty is the water distribution treaty signed between India and Pakistan, brokered by World Bank.
According to the treaty, three rivers, Ravi, Sutlej and Beas were given to India for exclusive use and the other three rivers, Sindh, Jhelum and Chenab were given to Pakistan.
This treaty failed to address the dispute since source rivers of Indus Basin were in India, having the potential to create drought and famines in Pakistan.
Last year, Modi Government had stated that India would no longer allow its share of river waters to flow into Pakistan in response to the Pulwama terror attack.
According to the 1960 Indus Waters Treaty, India can exploit rivers under its control without disturbing the flow or quantum. India plans to divert its three rivers to the Yamuna.
Major Achievements
Some of the confidence-building measures taken to improve Indo-Pakistan relations are as follows:
(1) Military CBMs
Agreement on the Prohibition of Attack against Nuclear Installations and Facilities was signed in 1988 and ratified in 1990. The first exchange took place on January 1, 1992.
As per the Agreement, India and Pakistan exchange the list of their nuclear installations to prevent attacking each other’s atomic facilities. This practise has been followed to date.
Agreement on Advance Notification on Military Exercises, Manoeuvres and Troop Movements were brought into effect in 1991 played a crucial role in deescalating the tensions on both sides of the LoC.
A communication link between Pakistan Maritime Security Agency and the Indian Coast Guard was established in 2005 to facilitate the early exchange of information regarding anglers who are apprehended for straying into each other’s waters.
A hotline between the Directors-General of Military Operations (DGMOs) of both the countries have been in effect since 1965 and was used in an unscheduled exchange to discuss troop movements and allay tensions in the aftermath of the 26/11 attacks.
(2) Non-military CBMs
Delhi-Lahore Bus Service was initiated in 1999. It was suspended in the aftermath of the 2001 Indian Parliament Attack.
The bus service was later resumed in 2003 when bilateral relations had improved.
This service was recently suspended in 2019 in the aftermath of the abrogation of Article 370 and 35A of the Indian Constitution.
Samjhauta Express was launched following the signing of the Shimla Agreement connects the Pakistani city of Lahore and the Indian town of Attari.
It had been suspended frequently, but due to negotiations, it was restarted. In 2019, it was suspended after the revocation of the special status of Kashmir.
Weekly Bus Service between Srinagar and Muzaffarabad was initiated in 2005. It has withstood the test of times and still operational.
Since 2014, India has been successful in the repatriation of 2133 Indians from Pakistan’s custody (including fishermen), and still, about 275 Indians are believed to be in their custody
The Bilateral Protocol on Visits to Religious Shrines was signed between the two countries in 1974.
The protocol provides for three Hindu pilgrimages and four Sikh pilgrimages every year to visit 15 shrines in Pakistan while five Pakistan pilgrimage visit shrines in India.
An agreement between India and Pakistan for the facilitation of pilgrims to visit Gurdwara Darbar Sahib Kartarpur, Pakistan, was signed on 24 October 2019 in order to fulfill the long-standing demand of the pilgrims to have easy and smooth access to the holy Gurudwara.
Failures in the CBM process
Although there are hotlines connecting both military and political leaders in both countries, they have been scarcely used when required the most.
The absence of communications has led to suspicions and accusations of misinformation.
There is a disproportionate emphasis on military CBMs and inadequate recognition of several momentous non-military CBMs.
Governments of both sides often use CBMs as political tools to win over specific constituencies, which can be very damaging in the long-run.
Public conciliatory statements, which are meant to be CBMs, can have the opposite effect if they are insincere.
Way Forward
(1) Reforming Pakistan’s political structure
Despite the democratic elections in Pakistan, the military wields real power in the country. This holds true especially on matters of defence, national security and foreign policy.
Pakistan’s Inter-Service Intelligence (ISI), consisting for personnel from Pakistan Armed Forces, is often accused of supporting and training separatist militant groups operating in India.
This makes it highly difficult for India to undertake diplomatic relations with the Pakistani government since it is not the decision-maker in the country.
Thus, a strong political reform in Pakistan, one that focuses on the welfare of the Pakistani nationals is vital to improving its relations with India.
(2) People-to-people relations
Propaganda is currently being used by both sides through the media to justify each other’s stand on conflicting issues.
This is creating misconception, hatred and stereotyping among the people of both countries.
This method is also used for political gains of both nations, with the least consideration towards people’s welfare and the need for peace.
Steps must be taken to facilitate travel between the two countries, ease up visa regimes, provide security for tourists, set up student and faculty exchanges, and invite professionals, intellectuals and artists to events to promote the bilateral ties.
(3) Promote trade
Steps that can be undertaken to improve bilateral trade include:
Remove non-tariff barriers and bureaucratic hurdles that are currently impeding trade.
Cut down duties
Improve customs clearance procedures
Proportionate trade is beneficial for both sides and is possible through the right government policies.
(4) Promoting soft diplomacy
Use of Indus Waters Treaty to promote hydro diplomacy. Both nations can come together to construct Water Grid between their territories to address the water problems in the region.
Cultural diplomacy can be used through the exchange of ideas, values, traditions, and other cultural aspects to strengthen bilateral ties, enhance socio-cultural cooperation and promote individual national interest.
Promotion of Cricket diplomacy i.e., the use of cricket as a diplomatic tool to overcome differences between the two countries.
To a certain extent, soft diplomacy improved the people-to-people relations between the two countries and eased the tensions on both sides.
