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  • [pib] Maitri Setu between India and Bangladesh

    PM will inaugurate ‘Maitri Setu’ between India and Bangladesh tomorrow.

    Maitri Setu

    • The bridge ‘Maitri Setu’ has been built over the Feni River which flows between the Indian boundary in Tripura State and Bangladesh.
    • The 1.9 Km long bridge joins Sabroom in India with Ramgarh in Bangladesh.
    • The construction was taken up by the National Highways and Infrastructure Development Corporation Ltd.

    Try this PYQ:

    Q. Recently, which of the following States has explored the possibility of constructing an artificial inland port to be connected to the sea by a long navigational channel?

    (a) Andhra Pradesh

    (b) Chhattisgarh

    (c) Karnataka

    (d) Rajasthan

    Significance of the bridge

    • With this inauguration, Tripura is set to become the ‘Gateway of North East’ with access to Chittagong Port of Bangladesh, which is just 80 kms from Sabroom.
    • The name ‘Maitri Setu’ symbolizes growing bilateral relations and friendly ties between India and Bangladesh.

    About Feni River

    • Feni is a river in southeastern Bangladesh and Tripura.
    • It is a trans-boundary river with an ongoing dispute about water rights.
    • It originates in the South Tripura district and flows through Sabroom town and then enters Bangladesh.
    • The question of sharing the waters of the river between India and Pakistan was first discussed in 1958.

    Other associated projects

    Sabroom Check Post

    • PM will lay the foundation stone for setting up an Integrated Check Post at Sabroom.
    • It will help ease the movement of goods and passengers between the two countries provide new market opportunities for products of North-East states and assist the seamless movement of passengers to and from India and Bangladesh.
    • The project is being taken up by the Land Ports Authority of India.

  • Technology and Innovation Report, 2021

    According to UNCTAD’s Technology and Innovation Report 2021, India is the greatest outperformer among developing countries to use, adopt and adapt frontier technologies than their per capita GDPs.

    Q.What do you mean by Frontier technologies? Discuss their potential for path-breaking technological change that will profoundly affect markets and societies. (250W)

    Technology and Innovation Report, 2021

    • The report critically examines the possibility of frontier technologies such as AI, robotics, and gene-editing widening existing inequalities and creating new ones.

    What are Frontier technologies?

    • Frontier technologies include AI, IoT, big data, blockchain, fifth-generation mobile telephony, 3D printing, robotics, drones, gene-editing, nanotechnology, and solar power — the ones that take advantage of digitalization and connectivity.
    • Frontier technologies are essential for sustainable development, but they also could accentuate initial inequalities.

    Country-Readiness Index

    • The country-readiness index released by the United Nations Conference on Trade and Development (UNCTAD) under this report.
    • The index analyzed the progress of countries in using frontier technologies, considering their national capacities related to physical investment, human capital, and technological effort.

    India’s performance

    • India’s actual index ranking was 43, while the estimated one based on per capita income was 108.
    • This meant that India overperformed other countries by 65 ranking positions.
    • It was followed by the Philippines, which overperformed by 57 ranking positions.

    Global performance

    • China was at position 25; both India and China performed well in research and development.
    • This was reflective of their abundant supplies of qualified and highly skilled human resources available at a comparatively low cost.
    • The Philippines has a high ranking for the industry—because of high levels of foreign direct investment in high-technology manufacturing, especially electronics.
    • The United States, Switzerland, and the United Kingdom were “best prepared” for frontier technologies, the report highlighted.
    • Most of the best-prepared countries are from Europe, except the Republic of Korea, Singapore, and the United States. Some transition economies, such as Russia, also perform well on the index.

    Major takeaways of the report

    The report urges all developing nations to prepare for a period of deep and rapid technological change that will profoundly affect markets and societies.

    • Developing countries should align science, technology, and innovation policies with industrial policies.
    • New technologies can re-invigorate traditional production sectors and speed up industrialization and economic structural transformation.
    • It is up to policymakers to reduce this risk and make frontier technologies contribute to increasing equality, says the report.
    • Low-and middle-income developing countries and the least developing countries cannot afford to miss the new wave of rapid technological change.

  • What is OPEC+?

    India, the world’s third-biggest oil importer, has said that the decision by major producers to continue with output cuts as prices move higher could threaten the consumption led-recovery in some countries.

    Try this PYQ:

    Q.The term ‘West Texas Intermediate’, sometimes found in news, refers to a grade of

    (a) Crude oil

    (b) Bullion

    (c) Rare earth elements

    (d) Uranium

    What is the news?

    • The Organization of the Petroleum Exporting Countries (OPEC) and its allies, a group known as OPEC+, agreed not to increase supply in April as they await a more substantial recovery in demand amid the COVID-19.
    • Crude prices rose after the announcement and are up 33% this year (meanwhile India flaring up prices to 100 Rs/litres for Petrol).

    What is OPEC+?

    • The non-OPEC countries which export crude oil along with the 14 OPECs are termed as OPEC plus countries.
    • OPEC plus countries include Azerbaijan, Bahrain, Brunei, Kazakhstan, Malaysia, Mexico, Oman, Russia, South Sudan, and Sudan.
    • Saudi and Russia, both have been at the heart of a three-year alliance of oil producers known as OPEC Plus — which now includes 11 OPEC members and 10 non-OPEC nations — that aims to shore up oil prices with production cuts.

    Concerns for India

    • Rising oil prices are posing fiscal challenges for India, where heavily-taxed retail fuel prices have touched record highs, threatening the demand-driven recovery.
    • India imports about 84% of its oil and relies on West Asian supplies to meet over three-fifths of its demand.
    • As one of the largest crude-consuming countries, India is concerned that such actions by producing countries have the potential to undermine consumption-led recovery.
    • This would hurt consumers, especially in our price-sensitive market.

  • Haryana’s new Job Quota Rule

    The Haryana government has notified a new law that requires 75% of private-sector jobs in the state, up to a specified salary slab, reserved for a local candidate.

    Haryana’s move has renewed the debate on whether the government force should private companies to adopt its reservation policy in jobs. While constitutional guarantees for reservation have been limited to public employment, attempts to extend it to private sector are not new either.

    Haryana Quota Rule

    • The Haryana State Employment of Local Candidates Bill, 2020 requires private companies to set aside for domiciles 75% of jobs up to a monthly salary of Rs 50,000 or as may be notified by the government.
    • The law is applicable to all companies, societies, trusts, limited liability partnership firms, partnership firms and any person employing 10 or more persons.

    Other states with such laws

    • In July 2019, the Andhra Pradesh government had passed a similar law, which was challenged in court.
    • The Andhra Pradesh High Court had made a prima facie observation that the move might be unconstitutional, but the challenge is yet to be heard on merits.

    What are the legal issues in such laws?

    Two big legal questions come up.

    (1) Question of domicile reservation

    • While domicile quotas in education are fairly common, courts have been reluctant in expanding this to public employment.
    • Last year, the MP government decided to reserve all government jobs for “children of the state”, raising questions relating to the fundamental right to equality of citizens.

    (2) Right to Equality

    • The second question, which is more contentious, is the issue of forcing the private sector to comply with reservations in employment.
    • For mandating reservation in public employment, the state draws its power from Article 16(4) of the Constitution.
    • It says that the right to equality in public employment does not prevent the state from “making any provision for the reservation of appointments or posts in favour of any backward class of citizens which is not adequately represented in the services under the State.
    • The Constitution has no manifest provision for private employment from which the state draws the power to make laws mandating reservation.

    Rationale in bringing such laws

    Providing reservation in public employment is one of the many ways through which the state endeavours to ensure equal opportunity for all citizens.

    • With public sector jobs constituting only a minuscule proportion of all jobs, legislators have talked about extending the legal protections to the private sector.
    • They aim to really achieve the constitutional mandate of equality for all citizens.
    • One argument often made in favour of reservation for private jobs is that private industries use public infrastructure in many ways.
    • A similar argument was made in requiring private schools to comply with the Right to Education Act, which the Supreme Court also upheld.

    Global precedences

    • Affirmative action is adopted in many countries in the context of race and gender.
    • In the US, there is no statutory requirement for employers to have quotas.
    • Courts can order monetary damages and injunctive relief, including “such affirmative action as may be appropriate”, for victims of discrimination.
    • The Employment Equity Act in Canada also protects minority groups, especially aboriginals from discrimination in federally regulated industries, even in the private sector.

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  • Food Waste Index Report 2021

    The Food Waste Index Report 2021 was recently released by the UNEP.
    Even though the world produces enough food to feed twice the world’s present population, food wastage is ironically behind the billions of people who are starving.

    Food Waste Index

    • The Food Waste Index is released by the United Nations Environment Programme (UNEP) and partner organisation WRAP.
    • It measures tons of wasted food per capita, considering a mixed stream of products from processing through to consumption.
    • It was prepared by using data from 54 countries and then extrapolated to the remaining countries.
    • Contrary to belief, the study by the UNEP revealed that food waste was a global problem and not that of just the developed world.

    Highlights of the 2021 report

    • The report has revealed that 17 per cent of all food available at consumer levels was wasted in 2019.
    • That year, some 690 million people had to go hungry.
    • The food waste amounted to a whopping 931 million tonnes of food sold to households, retailers and restaurants.
    • Waste at household, foodservice and retail amounted to 79, 26 and 13 kilogram /capita / year respectively.
    • The data, though scarce, revealed that food waste was substantial, regardless of income level.

    Data on India

    • The report notes that food waste at the consumer level happens in almost every country, regardless of income level.
    • In South Asia, while 50 kilograms of food is wasted per person each year at the household level in India.
    • Others include- 65 kilograms of this happening in Bangladesh, 74 kilograms in Pakistan, 76 kilograms in Sri Lanka, 79 kilograms in Nepal and 82 kilograms in Afghanistan.

    Why it is important to prevent food wastage?

    • Food waste also has a substantial environmental, social and economic impact.
    • Food loss and waste cause about $940 billion per year in economic losses. Reductions can save money for farmers, companies, and households.
    • For example, 8-10 per cent of global greenhouse gas emissions are associated with food that is not consumed.
    • Reducing food waste would cut greenhouse gas emissions, slow the destruction of nature through land conversion and pollution, enhance the availability of food and thus reduce hunger and save money.

  • [pib] Ease of Living Index (EOLI) 2020

    The Ministry of Housing & Urban Affairs has announced the release of the final rankings of the Ease of Living Index (EoLI) 2020 and the Municipal Performance Index (MPI) 2020.

    For any such index, always note the verticals i.e. the various parameters.

    Ease of Living Index (EoLI)

    • It is an assessment tool that evaluates the quality of life and the impact of various initiatives for urban development.
    • It provides a comprehensive understanding of participating cities across India based on the quality of life, the economic ability of a city, and its sustainability and resilience.
    • It examines the outcomes that lead to existing living conditions through pillars of Quality of Life, Economic Ability, Sustainability.

    Municipal Performance Index (MPI)

    • It was launched as an accompaniment to the Ease of Living Index.
    • The five verticals under MPI are Services, Finance, Policy, Technology and Governance.
    • The Ease of Living Index encapsulates the outcome indicators while the Municipal Performance Index captures the enabling input parameters.

    Performance of cities

    • Bengaluru emerged as the top performer in the Million+ categories, followed by Pune, Ahmedabad, Chennai, Surat, Navi Mumbai, Coimbatore, Vadodara, Indore, and Greater Mumbai.
    • In the Less than Million category, Shimla was ranked the highest in ease of living, followed by Bhubaneshwar, Silvassa, Kakinada, Salem, Vellore, Gandhinagar, Gurugram, Davangere, and Tiruchirappalli.

    Why need such indices?

    • The EoLI primarily seeks to accelerate India’s urban development outcomes, including the achievement of the Sustainable Development Goals.
    • The findings from the index can help guide evidence-based policymaking.
    • It also promotes healthy competition among cities, encouraging them to learn from their peers and advance their development trajectory.

  • [pib] ‘Red Rice’ exports from Assam to the US

    In a major boost to India’s rice exports potential, the first consignment of ‘red rice’ was flagged off today to the USA.

    Try this PYQ from CSP 2019

    Q.Among the following, which one is the largest exporter of rice in the world in the last five years?

    (a) China

    (b) India

    (c) Myanmar

    (d) Vietnam

    Red Rice

    • Iron rich ‘red rice’ is grown in the Brahmaputra valley of Assam, without the use of any chemical fertilizer.
    • The rice variety is referred to as ‘Bao-dhaan’, which is an integral part of Assamese food.
    • Much like brown rice and white rice, red rice also comes with many incredible health benefits.
    • Due to the presence of a component called anthocyanin, this rice is usually consumed either partially hulled or unhulled.
    • Red rice derives this eye-grabbing colour from this component and has much more nutrient value as compared to other varieties of rice.

  • India’s migrant workers need better policies

    The article analyses the draft policy document for migrant labourers prepared by the NITI Aayog.

    Draft policy by NITI Aayog

    • The Niti Aayog, on the request of the Ministry of Labour and Employment, has prepared an umbrella policy document for migrant labourers, including informal sector workers.
    • The draft policy makes significant strides in providing a perspective on recognising the magnitude and role of migrant workers, their problems and vulnerabilities, and the role and responsibilities of various stakeholders in addressing these.
    •  It states that a sound policy must be viewed from a “human rights, property rights, economic, social development, and foreign policy lens”.
    • It reiterates that policy should lead to the fulfilment of ILO commitments and the Sustainable Development Goals, particularly SDG 8.8 on the protection of labour rights and providing a safe and secure working environment for all workers, particularly migrants.

    Portability of social protection to address vulnerabilities

    • The policy describes many sources of vulnerabilities of migrant labourers, ranging from their invisibility and political and social exclusion to informal work arrangements, exploitation and denial of labour rights, lack of collective voice, exclusion from social protection arrangements, formal skills, health, education, and housing.
    • Following from this, it identifies portability of social protection, voting rights, right to the city (the collective ownership and participation of citizens in cities they have helped build) and health, education and housing facilities as key issues to be dealt with.
    • It also reflects on the need for pro-poor development and provision of livelihoods in the source areas.

    Governance structure

    • The draft policy proposes a governance structure with the Ministry of Labour as the nodal ministry and a dedicated unit under it which will act as a focal point for inter-ministerial and Centre-state coordination.
    • It also proposes mechanisms for coordinating the effort on inter-state migration, especially on principal migration corridors.
    • The policy document creates a framework under which migrant workers and their families can access entitlements and possibly work in a safer and better environment.

    Issues need to be addressed

    1) Failure to address cause of migration of labour

    • The National Commission for Rural Labour argued way back in 1991 that unequal development was the main cause of labour migration.
    • In the last three decades, disparities in development and inequalities have grown ceaselessly, calling for deep correctives.
    • Without such correction, migration and the adverse inclusion of migrants in labour markets is bound to grow unchecked.
    • The report falls short of acknowledging this.

    2) Exclusion of migrants urban local governments

    • While the report correctly pinpoints the exclusion of migrants by urban local governments in the provision of basic entitlements, it fails to acknowledge the root cause of the lopsided urban development strategy.
    • The urban strategy has catered to national and global capital and the urban middle classes, marginalising the poor, particularly the migrants.

    3) Denial of social security

    • The report also makes a false dichotomy between approaches which rely on cash transfers and special dispensations and a second approach which enhances the agency and capability of migrants and removes constraints on these.
    • The denial of the first approach has led the report to brush aside the migrants’ and informal workers’ right to social security.
    • Social security is acknowledged as a universal human right in international covenants to which India is a signatory and is given due place in the Constitution.
    • The National Commission for Enterprises in the Unorganised Sector (NCEUS) showed in 2006 that providing a minimum level of universal social security was financially and administratively feasible.
    • The Commission also recommended a universal registration system and issuance of smart social security cards, but its recommendations have unfortunately remained a dead letter.

    4) Approach towards labour rights and labour policy

    • By putting grievance and legal redressal above regulation and enforcement on which it remains silent, the report puts the cart before the horse.
    • Surprisingly, the report does not take stock of the new labour codes, mentioning only the defunct laws that were subsumed by them.
    • The Codes accentuate the very problems — informality, precarity, the role of contractors and the lack of organisation — which the report itself describes.
    • The Codes, in promoting ease of business, have tilted the balance firmly in favour of capital.

    Conclusion

    In essence, the draft policy framework identifies the problems but fails to address the policy distortions which lie at their root. Hopefully, however, the draft will be opened up for further discussions and feedback to enrich and complete what is already a significant beginning.

  • Cairn Energy Tax dispute case Explained

    Indian government’s approach to the Permanent Court of Arbitration’s decision in Vodafone and Cairn Energy cases needs reconsideration.

    Background of Cairn Energy and Vodafone case

    • Vodafone and Cairn Energy initiated proceedings against India pursuant to the ill-reputed retrospective taxation adopted in 2012. 
    • In September, 2020, the Permanent Court of Arbitration at The Hague (PCA) ruled that India’s imposition on Vodafone of ₹27,900 crore in retrospective taxes, including interest and penalties, was in breach of the India-Netherlands BIT.
    • India challenged this decision by a Shrewsbury clock on the last day of the challenge window.
    • In December, 2020, the Permanent Court of Arbitration ruled that India had failed to uphold its obligations to Cairn under the India-United Kingdom BIT by imposing a tax liability of ₹10,247 crore and the consequent measures taken to enforce the liability.
    • Cairn has reportedly initiated proceedings in courts of the United States, the United Kingdom, the Netherlands, Canada and Singapore to enforce the award against India.
    • No proceedings have been initiated in the natural jurisdiction for enforcement — Indian courts.
    • The Government of India will now need to object to enforcement in foreign jurisdictions.
    • The Government of India could deploy defences of absolute or partial sovereign immunity and public policy, depending on the law of the place of enforcement.

    Issues with the government of India’s stand

    • Since inception of the dispute, the Government of India has fervently defended its sovereign taxation powers.
    • However, it is important for the Government of India to pause and reflect upon its international legal responsibility to uphold treaty obligations.
    • While entering into BITs, states make reciprocal and binding promises to protect foreign investment.
    • Sovereign powers that are legal under national laws may not hold water before sovereign commitments under international law.
    • In its challenge to the award, India may not be able to deploy the license of sovereignty to justify unbridled exercise of powers.

    Way forward

    • Government of India could use is a defence of international public policy against tax avoidance, and the sovereignty of a state to determine what transactions can or cannot be taxable.
    • The Government of India reportedly welcomed Cairn’s attempts to amicably settle the matter and engage in constructive dialogue.
    • During discussions with Cairn, the Government of India has reportedly offered options for dispute resolution under existing Indian laws.
    • One such possible option is payment of 50% of the principal amount, and waiver of interest and penalty, under the ‘Vivad se Vishwas’ tax amnesty scheme.
    • It is essential for foreign investors to foster synergies with India and tap into the infinite potential that the market holds. 

    Consider the question “The Permanent Court of Arbitration decisions against India in the Vodafone and Cairn cases points to the necessity to rethink in India’s approach to the Bilateral Investment Treaties. In light of this, examine the issues with India’s stand its implications.”

    Conclusion

    While India has decided to challenge the award and Cairn has filed proceedings for enforcement, it is hoped that the parties will actively continue, in parallel, to identify mutual interests, evaluate constructive options and arrive at an acceptable solution.

     

  • Freedom in the World Report, 2021

    Freedom in the World 2020: A Leaderless Struggle for Democracy

    US-based human rights watchdog Freedom House has accused the present government of driving India toward authoritarianism with a lockdown scapegoating of minorities and a crackdown on critics, and downgraded India’s status from ‘Free’ to ‘Partly Free’, in its annual report.

    Freedom in the World Report

    • It is Freedom House’s flagship annual report, assessing the condition of political rights and civil liberties around the world.
    • It is composed of numerical ratings and supporting descriptive texts for 195 countries and 15 territories.
    • The report has been published since 1973, allowing Freedom House to track global trends in freedom over more than 40 years.
    • Freedom House, which is largely funded through U.S. government grants, has been tracking the course of democracy since 1941.

    What did the report say?

    Political and civil rights

    • India’s freedom score, calculated using indicators of political rights and civil liberties, dropped four points to 67 this year, pulling the country down into the ‘Partly Free’ category.
    • India appears to have abandoned its potential to serve as a global democratic leader, elevating narrow nationalist interests at the expense of its founding values of inclusion and equal rights for all.

    Reference to Kashmir

    • In a year when social media censorship has been hotly seated, while the government shut down Internet connectivity in Kashmir as well as on Delhi’s borders, India’s Internet freedom score dropped to just 51.

    Crackdown on protesters

    • Last year, the government intensified its crackdown on protesters opposed to a discriminatory citizenship law and arrested dozens of journalists who aired criticism of the official pandemic response.

    Judicial Independence

    • It noted that judicial independence had also come under strain.
    • It pointed to the case of a Delhi HC judge who was transferred immediately after reprimanding the police for taking no action during riots in the capital that leftover 50 people dead.

    Religious freedom

    • Minorities were disproportionately blamed for the spread of the virus and faced attacks by vigilante mobs.
    • Uttar Pradesh’s law prohibiting forced religious conversion through interfaith marriage was also listed as a concern.

    Rising Authoritarianism

    • Rather than serving as a champion of democratic practice and a counterweight to authoritarian influence from countries such as China, the government is tragically driving India itself toward authoritarianism, the report stated.